Terra Coffee x Outdoor Voices

Stephanie Fernandez - FASM 430

x

Outdoor
Voices

Project Overview..................................
Outdoor Voices Company Overview.........
Terra Coffee Company Overview.............
Competitive Analysis.............................
Market Research..................................
Secondary Research.............................
Primary Research.................................
Consumer Research..............................
Concept Development...........................
Product Assortment..............................
Marketing plan.....................................
Marketing Initiatives..............................

Project Overview

Aim: Making sustainable products accessible, while

educating the public about zero-waste with a nice cup
of coffee.

Objective: Outdoor Voices is partnering with a Terra

Coffee. A new concept Terra Coffee shop that will be
99% zero-waste.

Outcome: The new concept coffeeshop and outdoor

voices will create a unique experience for existing and
new customers. Outdoor Voices majority of sales are
online partnering with the new concept coffee shop
will bring customers in-store by curiosity thus
increasing foot traffic and sales. Terra Coffee and
OV mission will go hand-in-hand.

Outdoor
Voices

Company Overview:

Outdoor Voices is a Private and Sustainable Company launched in
2013
Product Assortment includes Active-Wear for yoga, hiking to
weight-lifting and running. They also sell Athleisure for Men and
Women including Shoes and Accessories.

Mission Statement:

We're on a mission to Get the World Moving, because we believe
Doing Things — moving your body and having fun with friends — is the
surest way to a happy and healthy life. When you let go of the
expectation to perform, that's when the real magic happens. You learn
that the joy of the game will always outlast a win.

Values:

Outdoor Voices values Community, sustainability, comfort and
Authenticity.

Brand Strategy

Outdoor Voices promotes “Technical Apparel for
Recreation.” The idea is that, in the absence of quantified
results and competitive pressure, physical activity will feel
like play.

Outdoor Voices is #doingthings, the company’s full
slogan, “Doing Things Is Better Than Not Doing Things.”
The slogan is open-ended encouraging people to define it
for themselves.

OV shows real women, who have curves and generous
stomachs, and who fall at the larger end of its sizing
spectrum

Outdoor
Voices

Outdoor Voices
Consumer Research

Outdoor Voices highest market is 18-34 years old.
Markets towards the Gen Z and Millennials, but all are
welcomed.
Upper and Middle class
The OV customer lifestyle is committed to living healthy
and active lifestyle.
Customer value community and inclusivity.
Suburban and Urban Areas
Outdoor Voices builds brand loyalty with active engagement
via social media.
Customers are all comfort and athleisure always looking for
the best sustainable product.

Target Demographic is 60% women and 40% men.

Outdoor Voices Distribution Channels

Outdoor Voices E- Outdoor
commerce Voices In-store

(Majority of Sales) Outdoor Voices has 11 stores throughout
Texas and California.
OV Website I www.outdoorvoices.com Products are sold international via online.
Outdoor Voices App

Outdoor
Voices

Future Outlook of
Sustainability for
Outdoor Voices

Eliminate all waste from community events, with 90%
landfill diversion
Launch circular product take-back and repair
programs
Increase percentage of traceable fibers from recycled
sources seasonally (Goal: 80% by 2022)
Increase number of bluesign certified fabrics
seasonally (Goal: 50% by 2021)

SWOT Strengths
Analysis:
Outdoor Outdoor Voices advantage is their brand strategy this idea behind workout gear
Voices for recreational use. Marketing is OV strong suit showcasing real women in their
products. Sustainability aspect makes OV unique by designing through the lens
SECIOV ROODTUO of longevity and circularity to reduce our environmental impact.

Weaknesses

Although sustainability is OV strong suit, there is always room to improve. In a
industry perspective OV lacks in flagship stores and distribution. OV could benefit
from selling to 3rd parties. Our competitors monitor every aspect of their supply
chain which is something OV could improve and begin being more transparent.

Opportunities

Outdoor Voices could explore in new innovative fabrics such as hemp,
TENCEL etc. OV could be certified in Better Cotton Initiative, SA8000
certification (ensures no forced or child labor, safe working conditions, and
the right to unionize) or OEKO-certified (safe dyes and stray fibers)

Threats

OV puts their customer first so in order for OV to expand they must be environmentally
consciousness yet hit their sales quota. OV competitors are Girlfriend Collective, Mate
the label and Richer Poorer. Our competitors are certified by various initiatives. OV has
yet to patriciate in initiatives which might make the customer turn to our competitors.

Mission Statement:

Terra Coffee mission is to reduce the use of
single-use plastic. Terra Coffee aims to be
95% zero waste coffee shop. We are always
be making moves for a better brighter future,

one plastic cup at a time.

x

Company Overview:

Terra Coffee is zero-waste coffee shop
Product Assortment includes Subscription
boxes, coffee grounds, and espresso drinks.
Partnering with Outdoor Voices to bring
awareness to the zero-waste movement.

Values:

Terra Coffee values supporting a Green Businesses,
Knowing our waste, Community and Authenticity.
#Say No to Single used Plastic.

Step 1: Find a
Farm

Terra Coffee will have 2 plastic barrels (holding
about 41 lbs) in the back of our store. All of
Terra coffee grounds and food waste will be
tossed into the barrels.

When they’re full, the farm trades out the
barrels and adds our waste to their compost piles

at the farms.

Step 2: Find a
Commercial
Composting Facility

Commercial Composting is a recycling company, however we
will conduct an audit of our local current waste management.
Terra Coffee will have bins for cardboard, mixed recycling,
and commercially compostable items.

What goes in the bins: PLA lined paper & plastic cups, lids &
straws, our bakery tissue, paper towel, paper bags, paper
scraps and other organic matter that will break down.

Step 3: Purchase
Compostable
Serving items

Terra Coffee will use compostable paper and
plastic cups and straws. We make sure our paper
bags, cup sleeves, bakery tissue, and paper towel

are all compostable.

Terra Coffee Channels of Distribution

Outdoor Terra Coffee
Voices In-store E-commerce

only Terra Coffee Website I www.TerraCoffee.com
Instagram Shopping @terracoffee
Terra Coffee App for online Orders

Terra Coffee Location

Outdoor Location: OV Austin (Blanco St.) OV Austin General Market in Blanco St.
Voices The Original OV
Average ages in Austin, TX: 18-35
Composting Farm/Commercial Average Wages: 35k-56k
Composting Facility: Break it Down, Austin
Majority of pop. seeking degrees or has a degree
Tx. Average of Foot Traffic in the Area: 5.8K
OV Monthly Visits: 3.0K

x Products & Pricing

1. Ground Coffee: Includes any type of grind to fit the
customers preference.

2. Coffee Box: Assortment of 2 (12oz) Terra Coffees'
3. Instant Coffee
4. Café Menu

Ground Coffee: $16.00
Coffee Box: $35.00

Instant Coffee: 30 pack-$48.00
12 pack- $20.00

PRODUCT DEVELOPMENT:
Outdoor Voices is launching a partnership with Terra
Coffee by extending Terra Coffee services to the current
OV customers. Together we aim of increasing turnover
in-store and educate the OV customer about the zero-

waste movement.

Future Outlook for
Terra Coffee

Terra Coffee is predicted to eliminate 1 million single-
use plastic items by 2025.
Expand e-commerce shop into selling zero waste
products.
By using compostable serving items Terra Coffee will
save 17,858 trees.
Since Terra Coffee only uses reusable items we have
saved 59,290,000 gallons of water.
Terra Coffee have diverted from plastic straws by
doing so, we save 1,078,064 single-use straws.

By 2025:

Build a Terra Coffee café using recycled materials
Expand into a Merch using sustainable practices.

SWOT Strengths
Analysis:
Terra My company advantages are having a unique concept with all compostable
Coffee items, health benefitting drinks, zero-waste store, and we support local farms.
We provide our consumers with unique and educational experience. We
EEFFOC ARRET compost our food waste & grounds with a local farm.

Weaknesses

Our compostable system will always be improving and evolving with
our business. Terra Coffee lacks an app for efficiency. Our
competitors are better at doing to-go orders and an app development.

Opportunities

Terra Coffee can expand into a building to reach more people in the
area. Terra will actively participate in Social Media, connecting with
consumers. We can use technology to be efficient for a seamless
consumer journey. Terra Coffee policies will has be transparent.

Threats

An obstacle could be maintaining compostable methods. My competitors are Juan
Pelato Café (local coffee shop), Starbucks and Chamberlain Coffee (E-commerce
coffee shop). Starbucks is the leading coffe chain and if they choose to use
compostable or recyclable products, this would affect my company.

Secondary Research

Coffee Industry Sales Emerging Trends:
Instant Coffee
Revenue in the Coffee segment is projected Decrease in 2020 due
to reach US$436,632m in 2021. to COVID-19
Coffee Industry
predicted to recover
Increased percentage
of in-home
consumption in 2019.

Coffee Pricing

Average cost at chain coffee shop Starbucks is $5.00,
Starbucks prices are based on the elements use to the
beverages. All items add an additional cost:

Milk (21.1 cents)
Espresso shot (23.4 cents)
Extra espresso ($1.00)
Syrup (22.1 cents)
Cups, lids and sleeves (20 cents)
Milk alternative ($1.00)
Employee Time

The total cost of items would be 86.6 cents. When
added in employee time, retail space, electricity and
etc. The upcharge leads to $5.00 to fulfill a quota.
Starbucks revenue $3,800 per day and a profit per
store of $520/day.

Coffee Shop Trends

In-store Coffee Shop Trends:

Coffee Shops Evolve as Workplaces for Digital Nomads
Communication with customers
Encouraging Use of Reusable Cups
Release unique flavors
Using Spent Coffee Grounds
Innovative Coffee Brewing Methods
Unique displays, These displays can be multifunctional in being used as accent décor and
also a functional product display case for baked goods.
Working Customers Drive More Traffic to Coffee Shops

Top 5 Coffee Beverage Trends: Additional Coffee Beverage Trends:
6. Fair Trade, Sustainably Grown Coffee
1.Nitro Cold Brew Coffee 7. Matcha Lattes
2.Dalgona Whipped Coffee 8. Non-Dairy
3.Sustainably-Grown Beans 9. Latte Art
4.Quality Decaf 10. Cold-brew Variations
5.Coffee Subscription

Size and Scope of Coffee Industry

Product Type:

The coffee market is segmented under whole-bean, ground coffee, instant coffee, and coffee pods
capsules.

Distribution Channel in the Coffee Industry:

The on-trade channel sales, considered in the context of the report include only those coffee
products, which were sold as retail/packed-form by coffee shops
The off-trade channels will include supermarkets/ hypermarkets, convenience stores, specialist
retailers, and other channels.

Geography:

North America is the leading consumer of the Coffee Industry
Coffee Industry Sales in the United States: $14,867 Million
Coffee Industry Sales Performance of Coffee: 5.1% Retail Value Growth from 2006-2025

Coffee Consumed When Coffee Consumer drink coffee
in Austin, Tx
Skips Breakfast and drinks coffee
In Austin ,Tx gourmet coffee-drinking is on the rise, with 59% 5%
of daily coffee drinkers indulging regularly in gourmet coffee
this year, a 15 percent increase. Drink coffee between meals
30%
Specialty coffee beverages are becoming a part of regular
coffee drinkers’ weekly consumption habits: frozen/blended Drink coffee with their breakfast.
(14 percent), cold brew (11 percent), and nitrogen-infused 65%
coffee (3 percent).
The biggest coffee drinkers
While those between the ages of 25-29 are in the middle of
the pack when it comes to daily consumption, they are the 13-18
biggest consumers of gourmet coffee (50 percent). 97.6% of 9.1%
coffee was consumed at at Offline.
60+
Austin ,Tx coffee rush hour are between 10 a.m. and 12 p.m., 27.3%
and then 2 p.m. and 5 p.m.
18-24
18.2%

25-39 40-59
21.8% 23.6%

Consumer Connection

One of the primary reasons why coffee shops have become so
popular over the last decade is their relaxed and open feel.

People are now looking to improve their work-life balance. This
demand is why many people, particularly those with flexible jobs or
self-employment, look towards the relaxed atmosphere of coffee
shops as places to conduct business.

Consumers want to see authenticity from their brands. They want
shops and brands which share and promote their beliefs. They are
willing to pay more and be loyal to local and quality products.

Coffee Consumers typically gets their coffee expertise from social
media and word-of-mouth.

Outdoor Voices
Consumer Market

Outdoor Voices regularly engages with their customers via
social media, in-person gatherings, and ads. They also
promote their message of healthy living and activity. By
encouraging their community to be active and use their
products as intended.

Outdoor Voices is in a market that typically depends on
physical retail locations. However, they use them to help
build the brand and connect with their customers, rather
than sell.

Primary Research

Coffee or Tea? Do you know what
composting is?
Tea
28% No
13%
Coffee
72% Yes
87%

How old are you? Do you like Coffee?

35-50 No
6.9% 16.5%

25-35 18-25 Yes
41.4% 51.7% 83.5%

Do you recycle? Do you compost?

Yes Yes
47% 10%
No
53% No
90%

Have you tried composting? Do you exercise everyday?

Yes Yes
11.1 40%

% No
60%
No
88.9

%

Iced or Hot lattes? Do you follow any
sustainable brands?
Hot
20% Yes
42%
Iced No
80% 58%

Does the idea of a zero-waste Favorite Alternative
coffee shop sound interesting? Milk?

I don't know what that is Oat
12% 35%

Interested Almond
88% 65%

Key Findings

Survey reached 120 respondents via Instagram.
Most people who answered my survey are in
the age group of 18-25 (51.7%)
72% like Coffee over tea
87% know what composting is.
47% of people recycle
90% don't recycle on a daily basis
91% have never tried composting
People do not follow any sustainable brands
(42%)
A zero-waste coffee shop sound interested
(88%)

Starbucks Starbucks conducts its own form of market research is
Target through its My Starbucks Idea platform, which it rolled
Customer out in 2008 as part of the company's "Transformation
Research Agenda" at the time. The idea behind it remains the
same: customers, potential customers, and employees
can go to the website to submit any ideas they have for
new offerings, changes they’d like to see to anything
that already exists, requests to bring back old products,
and more.

Starbucks regularly tests new products in select stores,
which helps the company figure out if it needs to make
any changes before launching them in other markets —
or if it will even continue the launch in other markets.
Starbucks also uses data from several market research
firms, as well as data gleaned from its own stores, to
shape its new product lines.

Starbucks Starbucks has kept pace with this trend among health-
Target conscious consumers and customers with special dietary
Customer limitations. The company began offering soy milk in 2004.
Research: In 2015 it launched drinks with coconut milk, and in
Alternative 2016, it began offering almond milk. Starbucks also
Milk began offering oat milk in its European stores in 2018 to
keep up with trends there.

The company says that a major reason that it launched
these dairy-free milk alternatives was that they were some
of the most requested offerings on its "My Starbucks Idea'
platform.

During 2014, the company also tested the use of coconut
milk in stores located in Cleveland, Los Angeles, and
Oregon. The results of the tests and combined market
research were positive enough for Starbucks to begin
rolling out coconut milk nationwide.

Consumer Research

Target Market

Outdoor Voices majority of sales are
online. This partnership will increase
foot traffic in-store since the coffee
market majority sales are in-store.
OV primary is 18-34 years old, Men
and women. (60% Women and 40%
Men), this partnership will attract the
same market in-store with the same
beliefs as OV. Bringing awareness to
OV and Terra Coffee Mission.
Outdoor Voices is centered around
community and coffee starts the
conversation.

Demographics:

Age: The coffee customer age group in the U.S is 25-34 years old.
Gender: 45% of the U.S Coffee Market is Male and 55% is Female.
Income: 36% of Americans have high income meaning a higher disposable income. ($0-$100,000)
Location: The highest consumption of coffee is in the Northeast. (Avg. 1.97 cups a day)

Psychographics:

Values: Sustainability, Inclusivity, Devoting time to loved ones (Family & Friends),
and community
Opinions: Social Change Makers, Challenges the hierarchy status-quo,
Authenticity from brands, Openly receptive to feedback and recognition.
Interests: Intuitive Foodies - They love to explore their city, Wellness, Exercising,
Passion for learning, sustainability, equal-rights, travel and Technology.
Lifestyle: Purpose-driven, Free-thinking, multitasking and Creative.

Disposable Income:

Millennials tend to save any disposable income according to my
research but, will use disposable income for their needs and
wants if the product/items aligns with their beliefs.

Coffee Consumer Profile

General Shopping Preferences:

Where: 97.6% of coffee was consumed at at Offline via Coffee Shops or At-
home.
When: Rush hour is between 10 a.m. and 12 p.m., and then 2 p.m. and 5 p.m.
How: Coffee Consumers are starting to shop online for convenience. Coffee
Consumer tend order ahead of time on an App. Biggest form of purchasing is
online and in-store.
Why: Coffee Shops are allowing people to improve their work-life balance.

Shopping Preferences for Coffee:

Where: Starbucks, Local coffee Shops, Grocery Store etc.
When: Average is twice a day (Breaks between work, first thing in the morning
or as a meal alternative)
How: Coffee shop App or In-store purchase.
Why: Daily cup of coffee help you feel more energized, burn fat and improve
physical performance.

Where do they get their Information:

Coffee Consumers typically gets their coffee expertise from social media and
word-of-mouth. Coffee Consumers watch YouTube, Tic-tok, Instagram videos
of how-to make best cup pf coffee at home. Wanting a coffee shop quality at
home.

Coffee Consumer Profile

Demographics: x

Outdoor Voices highest market is 18-34 years old.
Age Group: Gen Z and Millennials
Race & Ethnicity: All
Income: Middle class ($0-$100,000)
Gender: 60% women and 40% men
Location: Urban Areas

Psychographics:

Values: Sustainability, Inclusivity, Devoting time to loved ones (Family &
Friends), Community and Politics
Opinions: Social Change Makers, Challenges the hierarchy status-quo,
Authenticity from brands, Openly receptive to feedback and recognition.
Interests: Passion for learning, sustainability, equal-rights, Wellness,
Exercising, travel, Innovation, Quality over quantity and Technology.
Lifestyle: Purpose-driven, busy, multitasking, Free-thinking and Creative.

Disposable Income:

Tend to save any disposable income
Disposable income for product/items aligns with their beliefs.

Outdoor Vocies Consumer Profile

x Demographics:

Consumer Age Group: Gen Z and Millennials
Similarities Race & Ethnicity: All
Income: Middle class ($0-$100,000)
Gender: Women and Men
Location: Urban Areas

Psychographics:

Values: Sustainability, Inclusivity, Devoting time to loved ones (Family & Friends), Community
Opinions: Social Change Makers, Challenges the hierarchy status-quo, Authenticity from brands,
Openly receptive to feedback and recognition.
Interests: Passion for learning, sustainability, equal-rights, Wellness, Exercising, travel and
Technology.
Lifestyle: Purpose-driven, multitasking, Free-thinking and Creative.

Disposable Income:

Tend to save any disposable income
Disposable income for product/items aligns with their beliefs.

Summary:

Terra Coffee and Outdoor Voices consumers are align by demographics, and psychographics
characteristics like living a sustainable lifestyle, being Social Change Makers, exercising and having
wellness-oriented lifestyle.

Beatrice Kettle

FOLLOW

Age: 25

Location: Austin, Tx

Occupation Head of Social Media at Austin Luxury Home Magazine

Income: $100,000

Vals Profile: Innovator, Thinker

Hobbies: Yoga, cooking, gardening, exploring the city and frequent
coffee drinker, biking and participates in zero waste
movement.

Favorite Local Juan Pelota Cafe, Epoch Coffee & Better Half
Coffee Shops: Coffee

Go-to Coffee Order: Iced Vanilla Latte with Almond Milk and no

straw.

Favorite Brands: Outdoor Vocies, Boyish Jeans & Public Goods

Favorite Social Media: Instagram and Tiktok

Beatrice Kettle

FOLLOW

Coffee Shop Preferences: Active Wear Preferences:

Friendly and vibrant staff No restriction
Bright Lighting Fits body like a glove, while still
Light and Airy décor lifting.
Cozy sitting Multifunctional (exercising to
Easy purchasing athleisure)

General Shopping Preferences: Time of Day for Coffee
Consumption:
Community based
Shops small business first Morning
Only shops sustainable brands Afternoon
Seamless consumer journey 2 cups a day
Quality over quantity

Where she gets her Coffee information?

Word of Mouth and Personal Experience
Instagram @homegroundsco @coffeebae
Tic-tok @caffeinication
How-to videos on Youtube

Outdoor
Voices

Market Research

Top 3 Competitors

@juanpelotacafe @Starbucks @Chamberlaincoffee
Local Austin Coffee Chain Coffee Shop E-commerce Coffee

Shop Shop

Juan Pelota Cafe

PRICING DISTRIBUTION CHANNELS:

Juan Pelota Café Mug and In-Store and Partially Online

Coffee Bundle: $25.00 Vaguely advertises through

1lb Ground Coffee: Instagram

$20.00

DRINKS: Rewards Program Sales only a few W
Accepts Apple Pay items online T
SHot Coffee- $2.00-$3.00 Wide vary in menu ranging
from Breakfast to Cocktails Instagram doesn't
Latte- $3.75-$4.25 Eco-friendly Packaging promote product
Teas-$2.50-$5.00 Organic Products Doesn't have a wide
Hot Chocolate- Donates to the 1% movement product assortment
$2.75-$3.75 Instagram is very community

connected

Chai-$3.50-$4.00 O Juan Pelota Café High
Cold Coffee & Italian expanding to competition in
Sodas-$3.00-$4.00 different areas in Austin ,Tx area
Specialty Drinks- Austin, Tx. Juan Pelota
$3.00-$3.75 Expanding to a Café caters to
Brunch menu. the suburban
area

Mocha-$4.25-$4.75

@JuanPelotaCafe

Promotion

Juan Pelota Café uses Instagram for announcing new drinks and
partnerships.
Juan Pelota Café promotes sharing health benefits of their drinks.
Participates in festivals at Little City Austin.
Giveaway every Christmas via Instagram
Holds events in Juan Pelato café location

Advertisements

Advertises Organic and local coffee beans.
Latte Art
New Drink flavors every week.
Employee Highlights: Get to know the team

Outdoor
Voices