7-Eleven HK launches new on-the-go coffee

Date : 25 January 2018

7-Eleven in Hong Kong has launched a new coffee, tailored to on-the-go consumers desiring fresh coffee at reasonable prices. We review this latest initiative and potential impact on the market.

No-frills coffee on the go

Dairy Farm is introducing a new 100% Arabica coffee blend in its 7-Eleven Daily Cafe kiosks in Hong Kong. Stores will also have coffee machines from Switzerland, with coffees using fresh milk instead of UHT to maintain a stronger aroma. The new offer will also alter the design of stores, moving the Daily Cafe kiosk machines next to the cash register.

The opportunity...

The retailer believes its new coffee offer will fulfil a gap in the market - quality and freshly ground coffee at a competitive price. Elman Lee, 7-Eleven's sales and marketing director for HK and Macau said, 'We identified different segments in the coffee market in Hong Kong and we found this is a ripe opportunity [...] They’re not looking for a barista to serve them, or for coffee art. They want accessibility, grab-and-go, but a quality coffee.'

Reasonable priced without sacrificing taste

Available on a flat rate at HK$14, a coffee at 7-Eleven is roughly half of the price of those found in established coffee chains like Starbucks or Pacific Coffee. While coffee is 7-Eleven's key focus, it is also working on a signature ice-cream product. Lee added, 'With the trend of current lifestyles we want to build more signature products for our brand'.

Strong marketing campaign to drive engagement

As the largest convenience chain in Hong Kong, 7-Eleven can exploit its network to promote the launch of its new coffee. Furthermore, accessibility to this new product should also not be an issue for consumers.

7-Eleven will utilise different marketing channels to reach all types of consumers. The marketing campaign will include social media, bus ads, exteriors and MTR windows, print ads, flyers and store promotions throughout Hong Kong and Macau. The retailer has also collaborated with FAMA, a well-known local group, to promote its new coffee through videos on Facebook and WeChat.

 

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