Challenge Statement
To foster Illy’s customers’ loyalty
What that really meant: Illy was losing out to new third-wave of coffee brands around the world which consumers where choosing on a daily basis while their product was perceived as a ‘luxury’ brand and used only on ‘special occasions’. This was particularly concerning as they were in the midst of planning a big US expansion push to try and tackle younger consumers. Therefore, Illy was asking us how to leverage their product and brand in order to tackle young consumers in the US. In particular, they were looking for ideas to incorporate into the design of a new flagship store for the brand in San Francisco.
Methods
Consumer Interviews: we took out to the streets to speak to our target demographic--young, urban workers between the ages of 20 and 45 who were daily coffee drinkers
Consumer Observation: we sat at different coffee shops, tea houses, and restaurants to observe how people consumed coffee and other drinks. We had several observation sessions at Illy’s flagship store in Milan
Insights
These are some of the quotes and observations from our research process which inspired our final solution:
“I want to try new things and discover new flavors that I might like, I feel like technology should help me with that”
“The perfect coffee shop is my house because it is intimate and familiar”
“I care about how the brands I buy source their products and treat people throughout their supply chain”
Our Proposal
A Interactive and Iterative Subscription Model
Illy had an unbeatable quality in sourcing and roasting beans. Additionally, Illy had very powerful programs to ensure the sustainable sourcing of their raw products and the responsible treatment of the communities and people they touched throughout their production process. However, Illy did not put their capabilities at the disposition of customers so that they could discover new tastes (rather they tried ‘educating’ the consumer by explaining their unique blend was the best and that they should therefore consume that unique blend). Additionally, they did not tell the stories behind their sourcing and the programs and technologies they developed to ensure a sustainable business with high social and environmental standards. We therefore proposed the following:
The development of a subscription program which would put Illy’s 9 single blends at the disposition of the consumer so that they could blend them in whatever way they wanted to create an infinite amount of new tastes and possibilities with the best Arabica beans from 9 places in the world. This subscription model would be integrated into the flagship store experience where customers would experience the taste notes of all different beans and use an ipad to build their own taste profile, which would lead to their personal blend. The subscription model would involve the tailoring of their blend over six months during which they would receive successive iterations of their blend and provide feedback on how they liked it. The more successful customer blends would be featured in-store.
A New Store Layout and Design
When visiting Illy’s flagship store in Milano and observing consumers for extended periods of time we realized that the store design did not fit the desires of ‘thrid-wave of coffee’ consumers. In particular, Illy’s shops had narrow entrances which were not inviting and clustered people along the entrances (where the coffee bar was set). This made the store look overcrowded even when there was plenty of space inside and it pushed several consumers away. Additionally, the shops were designed as restaurants with all furniture being regular tables and chairs. The space was not inviting and, most importantly, it did not feel “intimate” and “familiar” which our users had expressed as key considerations.
Therefore, we proposed the design of a new store with a wide entrance and big windows that would let people walking through take a peak into the store and view the “bean bar” which was a stand with all of Illy’s 9 unique Arabica beans and the actual foods that represented their main taste notes (eg. chocolate, citrics, caramel, etc.). Additionally, we designed modular furniture which could be re-arranged by customers to create the space that they needed and wanted, whether it was for working, reading, or meeting friends. Finally, we set out to tell the story behind Illy’s technology and sourcing (aimed at sustainable and responsible practices) by telling the story of farmers and other workers throughout the store in small exhibitions to be continuously updated.
What I learned throughout this project
Working in a multidisciplinary team
That companies often don’t know what their real challenges are when they describe a challenge statement
That there is a lot of power behind having real conversations with consumers and listening to what they are saying and what their needs are