Understanding the Market Gap

[This is a simple look at this issue, but for those of you who understand marketing, innovation, differentiation -- you will have no problem reading between the lines and filling in your own gaps.]

Understanding the Market Gap is one of the main factors in the capacity for long-term success and continued growth.

When we were building our business, we asked the following questions:

1) Where is there a gap in the market?

2) How do we fill that gap, and furthermore, how do we differentiate within that gap?

In a greater sense it's about differentiation, but that in itself is nothing but a meaningless term-- as are many marketing principles. The key to the solution of solving this particular Market Gap was easy.

The market as a whole was comprised of two distinct tracks. The first track is comprised of the chains of the world. The second track consists of Those Who Insist They Are Different (but really aren't). Most of the independents are a rehashing of the Starbucks menu--including sizing, blended drinks and the like. The only difference is a slightly better product but with greater inconsistency.

Where's the Gap? Quality.

What's our differentiation within the Gap? One cup at a time. And a relentless and continuous pursuit of Knowledge of Quality and its immediate implementation.

For our purposes, Quality can be defined as, "Sourcing quality ingredients, utilizing quality knowledge and training, and producing a quality product every time." This is a standard held by those businesses recognized as the top in their field.

There are differences in each company's level of knowledge as to the answers to these questions:

* Within our industry, what is the standard of quality? (Although the standard of quality in terms of ingredients sourced and knowledge has improved significantly since we opened over twleve years ago, the dedication to and nurturing of craft has waned, and sadly, the results are all too apparent.)

* Is our standard of quality higher, lower, or on par with the industry?

* What empirical proof do we have of our standard?

* Does the market dictate our standard or do we dictate our standard?

* Does our level of standard stay the same (i.e. repackaging old as new)?

* Does our level of standard lower in order to cater to the Lowest Common Denominator?

* Does our level of standard continuously change as our knowledge of quality changes?

It is this final question and a resulting answer of "yes" that leads us to the heart of our differentiation, and this does not only apply to us, but to every business that pushes itself to the forefront and quietly leads by an aggressive qualitative approach rather than an aggressive quantitative approach.

(in our case) Whether it's an espresso, or a cup of single origin siphon coffee, or a latte, or a hot tea, or an iced tea, or a bubble tea, or a chai, etc. it's all by the cup. No batch brewed drip coffee. Everything is by the cup.

Of course this approach puts us as a sliver within the Gap, but with deep penetration. The main factor that gives us certainty of long term viability is a continuous search for knowledge and its immediate implementation. This is a concept which extends to our other pursuits as well and will be clear in our future endeavors.

Ask yourself these questions?

* How can we make our X better?

* What can we learn from the best in the field (in terms of Quality)?

Know who the top players in your field are and study what they are doing. Pick their brain, speak their language, and break down their years of knowledge into months of hard work.

* What can we do to improve upon what they are doing?

* What is the best thing they do? Can we do it? Can we improve it?

* What is the second best thing they do?...

* What new thing can I learn today?

Whether you learn about proper heel placement and body-weight shifting during a tenkan kotegaeshi, the perfect sesame cold noodle, how to train your dog, the difference between coffee A at temperature X vs. temperature Y, the best day to water your flower garden, etc. The more you know, the more you are exposed to, the more you understand, the more your mind can relate things together that are seemingly unrelatable. Genius and inspiration often occur when we least expect it. It is when are mind is at rest that everything often comes together.

Understand the Market Gap for YOUR particular industry, and how you answer that question will be the defining concept of your entire business. Do it right knowing that improvement by innovation and quality will always lead to long term success.

Are you interested in developing a world class coffee program? Contact me at coffee AT caffedbolla DoT com and I can help you.