Product Profiling:

Founded in: 2016
Founders:  Ajai Thandi, Arman Sood and Ashwajeet Singh
Business channel: D2C
Annual Revenue: $3.63M as of Mar 31, 2023
Funding: Series A, $8.89M

India Coffee Market size was valued at USD 478 Million in 2022 and is expected to reach at USD 1,227.47 Million by 2032 at a CAGR of 9.87% during the forecast period 2023-2032.

What sectors and market segments does Sleepy Owl operate in?

Sleepy Owl serves in the D2C space in the Retail, Food and Agriculture Tech, Food and Agriculture, and Consumer Goods market segments.

Target Audience :
Age: 24-30; Young professionals; People who associate consumption with brands.

Value Proposition:
1. Known for Super Easy coffee - high quality, quick to prepare & taste great!
2. Made with the finest INDIAN BEANS ( Grade-A certified beans)

3. Redefining the coffee-drinking experience.

4. Sustainability packaging

The substitute products:
Caffeinated: Tea (Chai, Green tea, Black tea, Herbal teas, etc.); Matcha;
Non-Caffeinated: Golden Milk; Kamboucha; Hot Chocolate; IceTeas; Smoothies; Sparkling Water; Milkshakes

The competitors:

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What makes Nescafe and Bru stand out in the Indian market? 🧐

Strong brand recognition, a wide distribution network, effective advertising campaigns, product variety, and competitive pricing all play a role in their success.

Online sales account for 2.2% of its 3.7% market share in the instant coffee segment.

Sleepy Owl Coffee

Sleepy Owl's website offers a user-friendly experience for ordering coffee online. This includes clear product information, secure payment options, and efficient delivery processes. However, Users prefer buying through online grocery merchants for convenience purposes.

IDEAL CUSTOMER PROFILE

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Channel Research

1. Organic Search
Google Ranking
Sleepy Owl seems to be well-ranked on Google for the following Keywords -
Cold brew, Brew Coffee, Instant Coffee

Paid Ads

1. Youtube Ranking

2. Meta Ads

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Channel Of Acqusition

According to research, top 3 channels to acquire customers for instant coffee brands in Indiaare as follows:

1. Modern Trade: This includes supermarkets, hypermarkets, and grocery stores. These stores are frequented by a large customer base, making them ideal for reaching a broad audience seeking convenient options.
2. E-commerce Platforms: Online marketplaces like Amazon, Flipkart, BlinkIt, Zepto, InstaMart and Bigbasket offer wide reach and convenience for consumers. They also allow for targeted advertising and promotions.
3. Traditional Grocery Stores: These smaller, local stores cater to daily needs and often have strong relationships with local customers. They are a good option for established brands with strong brand recognition.

SUBSCRIPTION OFFERING :
The sleepy owl website

USER ANALYSIS

Coffee Behaviour :

​I analyzed consumer preferences and Sleepy Owl's advertising strategy, and I found a potential gap. During my research, I discovered that 40% of the target audience primarily drinks instant coffee. However, when I looked at the Meta Ads Library, I saw that Sleepy Owl isn't using "instant coffee" as a keyword in their ad campaigns. This means we might be missing out on a significant portion of potential customers.

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By incorporating "instant coffee" and related keywords into our ad strategy, we can increase our reach and target relevant users actively searching for instant coffee. We can position Sleepy Owl's product as a premium upgrade to traditional instant coffee brands. Developing targeted ad campaigns and tracking their performance will allow us to capitalize on this opportunity and expand our presence in the instant coffee market.

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Point of Purchase :

According to my User study, 35.7% of users ideally purchase their coffee through online one vendors. And the 2nd most popular channel is the local grocery store/supermarkets.

When I analyzed the presence of Sleepy Owl products on some of these platforms, the range of products available on BlibnkIt and Zepto were Limited. (please see the link above where I have seen recorder my user experience)

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Brand Awareness :

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57% of participants had heard of Sleepy Owl through their Social Media.

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KEY CHANNEL :

Online Grocery Stores

BlinkIt , Zepto, and Amazon​

Key factors to consider:

• User Experience: How easy is it for users to find Sleepy Owl products on each platform? Are there clear filters and search functionalities?
• Product Ranking: Where does Sleepy Owl rank compared to competitors in search results and on category pages?
  
  KEY PRODUCT:
  Most popular sleepy owl products are :
  

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The 2 most popular products/in-demand product for Sleepy Owl Instant coffee and their signature hot/cold brew.

Sleepy Owl needs to start optimizing 'Instant coffee' market as it seems to be an in demand product for the coffee market in India.

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SUMMARY

This analysis outlines a comprehensive acquisition strategy for Sleepy Owl, focusing on key channels to attract new customers and expand their market share.

Targeting Instant Coffee Drinkers:

• Leverage consumer research indicating a significant portion (40%) prefers instant coffee.
• Include "instant coffee" and related keywords in Meta ad campaigns to reach this target audience.
• Position Sleepy Owl as a premium upgrade to traditional instant coffee brands.

Optimizing Online Grocery Presence:

• Optimize the partnership with online grocery platforms like BlinkIt, Zepto, Instamart, and Amazon for wider reach and convenient purchasing options for the target consumers.
• Analyze user experience and product ranking on these platforms,and identify areas for improvement.
• Implement strategies like clear product descriptions, targeted promotions, and paid advertising to enhance visibility and drive sales.

Enhancing Social Media Strategy:

• Maintain engaging and creative social media content to build brand awareness.
• Address user feedback by incorporating coffee education and recipe inspiration into social media content.
• Encourage user-generated content to foster community engagement.

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