DUBLIN COLLEGE OF ADVANCED STUDIES

Business Studies

MARKETING PRACTICE












STUDENT

RENATA ALBUQUERQUE SILVA

re.albuquerques@hotmail.com


INSOMNIA COFFEE COMPANY










MARKET ANALYSIS





INTRODUCTION

The Insomnia Coffee Company was established in 1997 in a bookstore in Galway and since then
they have expanded their business all over Dublin. In December 2010 the company become 100%
Irish, been equally owned by Bobby Kerr (Chairman), Harry OKelly (CEO) and John Clohisey.
In 2003 the company merged with the gourmet sandwich company, Bendini & Shaw, to combine a
quality food offering with its hot beverage range. Since then the company has grew rapidly
through and now has more than 80 stores & outlets around Ireland, which includes partnerships
with stores as SPAR / BWG, EASON, Meadows&Byrne and GardenWorks (Plantagen). Insomnia has
at least 2 different layouts, the main one would be with ambiance to sit down and usually an own
store, and the second one would be to fit smaller shops with insomnia coffee express machine.
The company is Irelands leading independent premium coffee and sandwich caf chain and
currently is consolidating a strong position in Ireland while looking for further opportunities at
home and abroad.

MARKET ANALYSIS
1) SWOT Analysis

Strengths
1. Irish Company 100% Fairtrade
2. Largest coffeehouse in Ireland
3. Deals / Promotions & Price
Weaknesses
1. Suppliers coffee beans production
2. Customer Service
3. Range of Cold Beverages
Opportunities
1. Extend Range of Cold Beverages
2. Expansion of retail operations
3. Improve publicity
Threats
1. Rising prices of coffee beans & dairy
products
2. Increased competition of Cold Beverages
from Starbucks and Costa Coffee

a. Strengths
The company is 100% Irish owned and support Irish suppliers, which means that try to use
locally source all around Ireland.
Insomnia seems to be more expensive than other shops when checked the regular prices of
drinks and food. Although, the company has great and really worth deals that makes the
costumer always ask for a snack.
The company have 3 main deals that are:
- Any Hot Beverage (small or large) + Any Pastry (including cakes, muffins and croissants) for
3,75 => this deal make the client save up to 2,50
- Any Hot Beverage (small or large) + Any Sandwich wedge, Wrap or Flatbread for 5,00 =>
this meal deal makes the client save up to 3,00
- Any Hot Beverage (small or large) + Premium Sandwich, Panini, Bap, Bagel, Hot toastie or
Salad for 6,00 => with this deal the costumer save up to 3,00
- Any Hot Beverage (small or large) + Any Savoury Croissant for 4,50 => the customer save up
to 2,50.

b. Weaknesses
To use Irish locally sources the company is exposed to everything good or bad that happen
with their suppliers. At this market, coffee beans price are the biggest weakness, although
Insomnia try to surround this with partnerships and investing on their suppliers, getting the
suppliers close to the company.
Insomnia customer service is not one of the best ones, at the same time is not so bad. In
general the service is fast and efficient, although is not usual get a smile from the employees.
The company menu does not include any cold beverages, so by the time that summer comes,
the company does not make so much money as during the winter and the sales might decline
a little.

c. Opportunities
When summer starts, Insomnia tries to come with a few cold beverages to refresh their
customers, although this should be done during the whole year since in Ireland you never
know how the weather is going to be.
Insomnia should also invest more on publicity about their deals and promotions because
seems that people do not know about it and usually who knows is regular customers. In the
end their publicity is more as word of mouth than their own publicity.
By the time the company is the largest coffeehouse in Ireland, although should expand their
stores in areas around town.

d. Threats
As said before, the company is 100% supply by Irish market, what means that if the economy
in Ireland goes down, the prices of coffee beans and dairy products from their supplier raises
even when the company have a partnership.
The competitors are already well known about their range of cold beverage, and by the time
that Starbucks and Costa Coffee are expanding their retail operations, if Insomnia does not do
anything about start your own range of cold beverage, the company will lose market share to
their competitors.




2) PEST Analysis
POLITICAL ECONOMICAL
The level of political stability within Ireland
Industry-specific rules and regulations
Local economic environment within Ireland
Taxation level
Buying power of consumers
SOCIAL TECHNOLOGICAL
Changing family and/or work patterns in
Ireland
Consumer preferences
Changes in lifestyles of population
Changing values among population
Developments in agriculture
Innovative technology
Biotechnological developments

3) Market Competitors
A research show that the main competitors of Insomnia are Butlers Chocolate, Starbucks and
Costa Coffee, because of this just will be analysed these three competitors.

I. STARBUCKS
Starbucks is an American company which first started business in UK in 1998. It has about 50
stores around Ireland and is internationally known by good beverages and service. Even
though can be expensive you go for a coffee there since they do not have big deals. They are
famous by frappuccinos, shakes and iced beverages on the menu, also for the option to
customise your coffee or drink. To be an internationally coffee shop, when you go there, you
know that you are not paying the cheapest coffee in the city, but tastes good and the
employees in general are friendly enough. Even though, sometimes they get something in the
drinks by mistake.

II. COSTA COFFEE
Costa Coffee is a British company which first started business in London, UK. It has about 20
stores around Ireland, but is quite expensive and do not have deals in case that you order a
hot beverage and a sandwich or pastry, just students has discount when shows the student
card. The highlight of this company is not customer service or price, is atmosphere. Any
branch that you visit, depending the time, might take a while to be served, so the nice and
cosy seats would be worth it.

III. BUTLERS CHOCOLATE CAF
Butlers Chocolate is an Irish company founded in 1932 in Dublin. As the name says, they are
specialised in chocolates, so you should not expect to go for a sandwich there. It is possible to
find about 15 stores around Ireland and UK, they also have presence in New Zeland, Pakistan
and United Arab Emirates. The company offers the client truffles and chocolates when you get
a hot beverage. The prices are average for a coffee, and they do not really have big deals.
Butlers Chocolate has a great customer service even though the stores do not have seats in or
if they have is just a few.

4) Market Research
A research was submit with the questions and options below and all question market (*) must be
answered.

1* Have you ever heard about our company, Insomnia Coffee Company?
Yes
No
2* What is your gender?
Female
Male
3* How old are you?
Under 18
18 25 years old
26 30 years old
31 35 years old
Over 35
4* Are you a student?
Yes
No
5* Do you work?
Yes
No
6* In the past 30 days, how often did you go to a coffee shop?
Over 5 times a week
3 4 times a week
1 2 times a week
Slightly often (less than 3 times a month)
Rarely (once or never last month)
7* What time did you usually go to a coffee shop? (Could be select up to 3 options.)
Breakfast time (Between 7h 11h)
Lunch time (Between 11h 14h)
After Lunch time (Between 14h 17h)
After Work time (Between 17h 20h)
Night time (After 20 oclock)
8* Usually in your day-by-day, when you go to a coffee shop, which type of product you usually
ask for?
Hot Chocolate
Tea
Cappuccino
Americano
Caffe Latte
Macchiato
I just go for food
Others
9* When you choose your regular coffee shop, how this items would influence your choice?
Insignificant Neutral Significant Very Significant
Taste
Promotions / Deals
Price
Range of Products
To customize your drink
Be an Irish Company
Customer Service
10* Which of the following coffee shops are you used to go? (Could select all that apply)
Insomnia Coffee Shop
Starbucks Coffee Shop
Costa Coffee Shop
Butlers Chocolate Caf
Bewleys Caf
Newsagents (coffee machine)
Others
11 If you are not used to go to any Insomnia Coffee Shop, what do you think that we should
improve for you go more often? (Just should be answered if not use to go)
Range of Hot Beverages
Range of Cold Beverages
Range of food
Customer Service
Price
Deals & Promotions
Others
12* Do you think that if Insomnia have more range of cold beverages as Frappuccinos, shakes
would you go more often?
Yes
No
13* Which flavours of frappuccinos would be your favourites? (Could select all that apply)
Chocolate
Straberry
Caramel
Others
14* Compared to our competitors, in your opinion is our products quality better, worse, or about
the same?
A great deal better
Quite better
About the same
Quite worse
Really worse
Dont know our brand
15 Do you have any other comments to improve our company? (Open answer)

The research had 25 answers and everyone seems to know Insomnia Coffee Company and think
that the quality of products at Insomnia is about the same or better when compared with
competitors.
Analysing the answers can be realised that 84% of the customers are aged between 18 30 years
old, shared between male and female. Also notice that 76% are students and 80% of their
customers work. In general, customers go to a coffee shop once a week during peak times as
breakfast time (between 7h 11h) or after work time (between 17h 20h) and usually ask for Hot
Chocolate or Cappuccino.
When choose a coffee shop, the most important thing for a customer is Tasty drinks and food
followed by Promotions & deals, Price, Range of products and Customer service, and is not as that
important for them to customise your own drink or be an Irish company.
The research shows that nearly 37% of customer goes to Starbucks and about 34% to Insomnia,
from this can be realised that Starbucks is the strongest competitor of Insomnia, followed by Costa
Coffee and Butlers Chocolate.
Customers are not used to go to Insomnia sometimes because of the range of cold beverages and
deals & promotions. At the same time, more than 85% of people that go to a coffee agree that if
Insomnia Coffee Company has a Range of Cold Beverage as Frappuccinos and Shakes, they would
go more often to Insomnia and the favourite flavours would be Chocolate and Strawberries.

5) Conclusion
As analysed above, is possible realise that the customers miss a range of cold beverages and the
publicity should be improved.
While competitors do not have good deals as Insomnia, the customers seems do not know about
all the deals and promotions that they can get at the company since one of the things that most
part of the answers show is that should be improved deals at Insomnia. Even when most part of
Insomnia customers are Students, the company does not have student discount as competitors
have, student discount does not seems to be a big deal though, since students goes quite often to
Insomnia that have quite great deals, as described before.
Then, by the time that Insomnia Coffee Company improves the range of Cold Beverage and
Publicity, certainly customers would stop to go to Starbucks, mainly competitor, to get a
Frappuccino and go to Insomnia where they know that the taste and quality of products are
better and have worth deals for breakfast time, with toast or pastry, or lunch time, with
sandwich, salad or wrap.

















REFERENCES
Insomnia Coffee Company Website
http://www.insomnia.ie/

Starbucks Website
http://www.starbucks.ie/

Costa Coffee Website
http://www.costaireland.ie/

Butlers Chocolate Caf
http://www.butlerschocolates.com/

MURPHY, Aileen and GARAVAN, Thomas N. Chapter 1 - The Brewing of Insomnia.
http://www.bobbykerr.com/wp-content/uploads/2011/02/Insomnia-Case-Study1.pdf

YELP.ie To check reviews about taste and service at Insomnia Coffee Company. 29.04.2014
http://www.yelp.ie/biz/insomnia-coffee-company-dublin

YELP.ie To check reviews about taste and service at Starbucks Coffee Shop. 29.04.2014
http://www.yelp.ie/biz/starbucks-dublin-11

YELP.ie To check reviews about taste and service at Costa Coffee Company. 29.04.2014
http://www.yelp.ie/biz/costa-coffee-dublin

YELP.ie To check reviews about taste and service at Butlers Chocolate Caf. 29.04.2014
http://www.yelp.ie/biz/butlers-chocolate-cafe-dublin-29







ATTACHMENT 1
Market Research