Fore Coffee Sharpen Business Strategy to Achieve Profitability
Repositioning the brand as a pocket-friendly trendy drink according to the people's favorite
Startups coffee chain Fore Coffee recently disclosed its positive EBITDA achievement in the third quarter of 2021. One of the key factors for this positive performance is the reduction in the promotion budget by up to 50%. Fore said that this trend of cuts will continue in 2022 by 30%, and is targeted to reach 20% -30% in 2023.
In addition, his party revealed that around 50% of non-functioning outlets were hit by the pandemic storm in 2020-2021. This is caused by change supply & demand, supply chain, as well as coffee production and distribution processes. The situation pushed the players coffee chain to develop various innovations in order to survive.
Under the leadership of Fore Coffee Co-Founder & CEO Vico Lomar, the company conducted many strategic reviews. He again directed the focus on the core business which provides quality food and beverage products according to consumer tastes.
Entering its 5th year of operation, Vico describes three strategic steps that are the key to success ForeCoffee in expanding reach and services to achieve business profitability, namely encouraging superior product quality through R&D innovation, optimizing the performance of quality human resources, and targeting the opening of new outlets.
Until now, Fore Coffee has 134 outlets in Jabodetabek, the islands of Java, Sumatra and Kalimantan. Fore will add about 75 outlets and expand to cities mid size so that it can operate a total of around 200 outlets by the end of 2023.
“Our goal is that Fore Coffee can become one brand that is loved and trusted by Indonesian consumers. Goal This looks simple but requires extraordinary commitment from all elements of the company. With the principles of openness and transparency as well as being active in innovating for customer satisfaction, these goals will undoubtedly be achieved," said Vico.
Fore also performs image repositioning brand be a trendy drink that is pocket friendly. The company features seasonal beverage products while pushing their flagship product.
Matthew Ardian, CMO of Fore Coffee, said in an official statement, Fore Coffee came up with an approach brand which is different from other coffee players. This encourages the perception of most people that Fore Coffee is brand local premium coffee. This perception is what the company wants to straighten out.
"At the start of 2022, we sharpened our position not to be known as a premium player, but as a Power Housebrand leading coffee serving products essential, different, of the best quality, and liked by the public, because we understand that consumers have the right to be presented with better products," explained Matthew.
Some of Fore Coffee's top products throughout 2022 include Aren Latte, Pandan Latte, and Butterscotch Sea-Salt Latte. These products are claimed to bring brand Fore enters the ranks of the TOP 5 Brands with top of mind highest in Indonesia.
"Throughout 2022, Fore Coffee did a lot firsts, starting from a drink line for children called Fore Junior, the Fore Deli line, to collaborations with brand such premium lifestyle Grab, Laneige, Green Rebels to Grandma Elly. All of these launches are packed with marketing digital-centric up to date," added Matthew.
Furthermore, his party explained the main role of marketing in supporting R&D and operations. Apart from understanding the aspirations and inspirations of Indonesian consumers, marketing plays a role in bridging these aspirations with a variety of product innovations that people want.
The target is to carry out organic and sustainable marketing in 2023. High acquisition of new customers on an ongoing basis offline or online is a form of image sharpening contribution brand. In addition, the company also actively conducts campaigns every month. This bears fruit for consumers who are also actively spreading content through social media networks.
Based on research conducted with third parties, Fore Coffee experienced a 23% surge in satisfaction and NPS (Net Promoter Score) and placed Fore Coffee as the highest NPS achiever among brand others in Indonesia.
"Our flagship beverage product is the most effective promotion instrument. This product has succeeded in becoming a messenger of the quality of the product that Fore Coffee serves to the Indonesian people. That is why our focus lies on intensive and sustainable Product R&D so that it can create new trends, and be able to introduce new products. -new products that will become people's craze." Close Vico.