Epresso House - Rebranding

Espresso House: Differentiating Through Design

a case study by Brian W. Jones, Helene Koole, Marttiina Keituri & Sara N채slund

Introduction From our perspective as Master students of Business & Design, it is compelling to examine how the design of graphics, interiors, products and indeed business, work together in a system that creates value and differentiates a company in a market as competitive as coffee.

Reasearch Question

How has Espresso House used differentiation to add strategic value to their company?

What is Differentiation?

Differentiation, when deliberately and proactively done, can ensure that design and products become long lasting competitive assets for a company. To ensure and maintain a competitive advantage, companies must be willing to make long-term investments, and make sure the whole process is well managed.

- a valuable strategy for businesses wishing to achieve long term competitive advantage and loyal customers - creating a gap between a business and their competition - a company can gain a competitive advantage if it manages to create differentiation it can sustain over the long-term - in many companies, design has become a source of differentiation - product and design differentiation, can generate an invaluable relationship between a product and its consumers

Espresso House

Espresso House was founded in 1996, with their first coffee shop in Lund. After being purchased twice and merging with another coffee chain in 2006, they are now Sweden’s largest coffee chain with 123 locations throughout the country.

The company strives to sell coffee that is produced ecologically, fair and purchased from single estates with the goal of serving good coffee in a pleasant environment.

Holidesign

Holidesign is an Oslo-based design firm, focused on branding and interior architecture. Founded by Boris Iochev in 2005 and is the design studio responsible for re-branding Espresso House.

Founded by Boris Iochev in 2005, they have worked with several companies in the coffee industry, including Starbucks, Coca-Cola, Deli di Luca, Solberg & Hansen, and Narvesen.

Methods of Research Information that forms the content of this report were gathered through interviews, websites, articles, literature and study visits.

Interviews took place with Sveinung Høyer-Trollnes, Marketing Director of Espresso House, as well as Boris Iochev, founder of Holidesign. We also visited Solberg & Hansen’s roastery, to gain a better insight into these companies and the coffee industry.

PRIMARY TEXTS

Stephen A. Doyle and Adelina Broadbridge, (1999). Differentiation by design: the importance of design in retailer repositioning and differentiation Cohen, Joshua, L., (2011). Deliberate Differentiation by Design: Strategies for Generating Valuable Intellectual Property. Design Management Review Person, O. & Schoormans, J., (2010) Cultivating Creative Equity in Scandinavian Design Brands. Design Management Review

Differentiation

Examples of how Espresso House has differentiated itself with design.

Branding & Design Modernized branding inspired by stamps from origin, warmer color palette, refined typography.

BEFORE

AFTER

Branding & Design Modernized branding inspired by stamps from origin, warmer color palette, refined typography.

BEFORE

AFTER

Branding & Design Modernized branding inspired by stamps from origin, warmer color palette, refined typography.

Interior Design Inspired by Scandinavian culture using warm, natural color palette and materialsto create an experience that resembles a modern Nordic lodge with cleanliness and charm.

BEFORE

AFTER

Interior Design

BEFORE

AFTER

Quality, Taste & Transparency Their new roaster, Solberg & Hansen, focuses on farmer relationships, traceability & high quality beans. They’ve also won the Nordic Roaster Cup for the last 2 years.

Quality, Taste & Transparency Espresso House has their own bakery, which uses natural ingredients and no preservatives. They can develop new products and recipes quickly while maintaining quality.

Employee Training Training certifications and barista diplomas, cuppings to better understand taste and quality, and in-house barista competitions

Impressions & Discoveries - Differentiation wasn’t systematic - Dedication to quality - Strong customer loyalty - Perceived quality lower than actual quality - Bakery uses no preservatives - Service projects with farms - Staying in Scandinavia, but expanding beyond Sweden

Thank You.