Sleepy Owl Coffee

Case Study: How Sleepy Owl Coffee Built its Brand

Founders:  Ajai Thandi, Arman Sood and Ashwajeet Singh

Annual Revenue: $3.63M as of Mar 31, 2023 

 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 

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

1. Known for Super Easy coffee - high quality, quick to prepare & taste great! 

Redefining the coffee-drinking experience. 

Caffeinated: Tea (Chai, Green tea, Black tea, Herbal teas, etc.); Matcha; 

Non-Caffeinated: Golden Milk; Kamboucha; Hot Chocolate; IceTeas; Smoothies; Sparkling Water; Milkshakes 

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'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. 

Sleepy Owl seems to be well-ranked on Google for the following Keywords - 

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

​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.

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.

Forms response chart. Question title: What type of coffee do you typically drink?
. Number of responses: 15 responses.

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. 

Forms response chart. Question title: Where do you usually buy your coffee? . Number of responses: 14 responses.

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) 

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

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.

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

Acquisition project  |  Sleepy Owl Coffee

Acquisition

Sleepy Owl, a prominent New Delhi-based startup