Transcript PowerPoint

Service model design:
approach, outcome and learnings
Kristian Helanne, VP, Fazer Cafés
Dr. Heli Holttinen, Founder, Salt & Company
Agenda
• Fazer Cafés business in short
• Service design approach for the new café concept
• New Fazer Café concept
The Fazer story
The Fazer Group has
its beginnings in the
first café Karl Fazer
opened in Helsinki in
1891.
Since then, Fazer has
flourished into an
international business.
Today, Fazer Group
continues to expand
its leading brands in
different markets and
in new product and
service categories.
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© Fazer. All rights reserved
Fazer in brief
• In 2013, Fazer Group’s net sales grew to
1.7 billion euros, all time high
– Over 50% of the revenue comes from outside
Finland
• The operating profit in 2013 was 49 M€ (83
M€ excluding amortisation of goodwill)
• Over 15,500 employees
• Fazer offers bakery, confectionery and
biscuit products as well as food and café
services
• Headquartered in Finland, with operations
in Sweden, Norway, Denmark, Russia and
the Baltic countries
• The foundation for the whole Group is the
mission to create taste sensations and the
value to produce products and services of
excellent quality
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© Fazer. All rights reserved
Organisational structure
Fazer Group consists of three Business Areas and two Business Units
with full profit and loss responsibility:
Fazer Group
Business areas:
Fazer Bakery
Fazer Confectionery
Fazer Food Services
Business units:
Fazer Cafés
Fazer Mill & Mixes
The structure ensures Fazer’s ability to operate efficiently, with clear
roles and accountabilities among employees. It is designed to enhance
consumer and customer focus, enable faster decision-making and
improve strategy execution capabilities.
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Our mission, vision and values
Mission
Fazer creates taste sensations
Vision
Fazer is the best choice
Values
Passion for customer:
Quality excellence:
Team spirit:
We always strive to
exceed our customers’
expectations
Responsibility in
everything we do
We work together,
respecting each other
Ethical principles
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Fazer’s ethical principles are based on the ten principles
of the UN Global Compact
© Fazer. All rights reserved
Fazer Cafés Vision
Fazer Cafés is loved by consumers. Exceeding
their expectations by offering an unique Fazer
experience and making every day taste better.
Role within Fazer Group
1. Cornerstone of the Fazer brand with heritage from
Kluuvikatu.
2. Strengthens the bond between consumers and
Fazer.
3. Serve as a marketing and sales platform for
Fazer’s confectionary and bakery products.
Flagship for Fazer’s service offering.
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Fazer Café brand hierarchy and # of units
Flagship
Heritage
Growth
Power
Brand
Stockmann
Local
concepts
Money
makers
Local department store
restaurants
Bistro A
Messukeskus
Number of units
Net sales 2013 50 M€
FIN
14
SWE
15
Karl Fazer Café
1
Bisto A
12
Fazer Café
7
Hava Java
Stockmann
5
Messukeskus
1
3
Agenda
• Fazer Cafés business in short
• Service design approach for the new café concept
• New Fazer Café concept
Design & implementation process –
turning from a funnel into a tunnel
Opportunity
identification
In which consumer
foodservice
segment(s) and
markets is it wise to
operate and why?
50 interviews
Quant market stats
Netnography
Content analysis in
social media
Facebook study
Concept design
What exactly
should we do in
order to win
consumers hearts
and thus beat
competitors?
Design & workshops
in different design
streams
NYC field study
Business case 0.1
Feasibility study
Implementation
Is the business
model feasible and
viable?
How to meet targets
and how to
improve?
Quantitative concept
testing
- Concept related
metrics
Detailed design
- Personnel
commitment
Business case 1.0
Risks & mitigation
- P&L
Growth towards experiential, casual and
healthy middle-market concepts
Market dynamics
Value for money
Fine
dining
More eating out in
ordinary occasions
Experience
More healthy
More experiential
Juice and
smoothie
bars
Specialist
coffee
shops
Cafes
and
cafeterias
Fast
food
Fast
casual
Bundling
Luxury for
chosen
occasions
Gourmet
fast food
More experiential
Higher quality
Busy life styles
Polarization
Fragmentation
Low-end
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Bundlers
Healthy
fast food
(bakery,
Asian)
Efficiency
Casual
dining
Middle-market
High-end
© Fazer. All rights reserved
Design mindset:
SERVICE DESIGN =
CUSTOMER-DRIVEN BUSINESS MODEL DESIGN
Desirable
Customer
experience
Feasible,
efficient,
scalable
Production
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Viable
Financials
© Fazer. All rights reserved
Business model design in multiple
parallel design streams
Opportunity
identification
Feasibility
study
Concept design
Implementation
Week #
TASKS:
Project planning
Field study: Copenhagen and NYC
Service design workshops
Food and drink offering design
Service model design
Space and interior design
Production design
Pricing
Business case
Branding
Concept testing
Location planning
= workshop
Management model and HR
= project team meeting
= SG meeting
Franchising
Steering group
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Quick win: menu
piloting in F8
Concept test results were very promising
78%
85%
71%
Interesting novelty
75%
77%
67%
Will visit at least
once / month
Will be of my
favorite
cafes/restaurants
54%
64%
42%
0%
50%
69%
68%
62%
Other bakery
products
82%
80%
74%
60%
74%
68%
Fazer confections
and sweets
0%
Sweden
50%
100%
Denmark
Stands out
positively from
competition
79%
71%
68%
Delicious
92%
92%
90%
Layout easily
perceivable
79%
81%
78%
Food offering
makes me
interested
91%
92%
89%
Comfortable space
and atmospere
83%
78%
80%
0%
50%
100%
95%
Concept fit with
Fazer brand
77%
72%
68%
80%
71%
Fresh artisan bread
Finland
100%
Stands out
positively from
competition
88%
Brand name (e.g.
Fazer Töölönkatu)
fit with the concept
87%
78%
0%
50%
100%
0%
50%
100%
• Quantitative online survey in Finland,
Sweden and Denmark
• n = 3000
• Respondent: current, future, and
retired office workers in university
towns with 100 000 and more
inhabitants
• Concept presented as authentic as
possible: story, 3D-sketched pictures
of the space, priced menus
Agenda
• Fazer Cafés business in short
• Service design approach for the new café concept
• New Fazer Café concept
RELAXED HIGH-END
CAFÉ DRAWING ON
KLUUVIKATU HERITAGE
Fazer Cafés continue the story started
at the original Fazer Café in 1891 by Karl Fazer,
and later run together with his wife Berta.
Like their predecessor, Fazer Cafés continue to be a
step ahead, bring international flair to city streets and
offer quality tastes.
In the cafés our customers can enjoy the artisan
creations of our bakers, confectioners and chocolate
experts, as well as enjoy excellent customer service.
TARGET GROUPS AND USE SITUATIONS
Core target group: those to whose lifestyle cafés and restaurants belong
• 25 - 45 year old educated urbans
• Café and restaurant heavy users: they want and can afford to spend on cafés and eating
out on a frequent basis
• Open-minded and demanding: those who miss Paris or New York because of their lovely
cafés and restaurants
Use occasions: breakfast - lunch - coffee breaks - take-away
VALUE PROPOSITION
Best-in-class
bakeries &
confectionaries
Craftsmanship
Fluency
&
relaxation
Pleasure
&
healthiness
Unique &
important
customers
Kluuvikatu heritage
OFFERING CORE:
CRATFSMANSHIP & SIGNATURE
PRODUCTS
COMBINING PLEASURE
& HEALTHINESS
Fazer hospitality
FROM ENTRY TO EXIT
MODERN MEETS
ART DECO
BRINGING TASTE
SENSATIONS HOME
Locations
2013
2014
Itis shopping
malli
Forum
shopping mall
Messukeskus
fair center
City Center
shopping mall
Munkkivuori
shopping mall
Stockmann
Tampere
2015
2016
New
location(s) in
Finland
New
location(s) in
Finland
Stockholm
Sweden
Evaluation of
the new
markets >
Entering the
new markets
Stockmann
Helsinki city
center
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Helsinki Cafés survey 2014
- by Taloustutkimus
The importance of factors affecting the choice of café in 2010 - 2014
n=all respondents
36
38
Atmosphere/comfort of
the premises
37
37
Price-quality ratio
Freshness of the products
35
35
35
27
15
Cleanliness of the facilities
19
18
20
15
15
17
Assortment of salty products
20
42
41
44
43
51
49
38
28
25
2010 (n=828)
Helpfulness of the staff
14
11
12
13
15
Assortment of sweet products
2011 (n=892)
21
2012 (n=917)
2013 (n=896)
21
2014 (n=1011)
Expertise of the staff
4
11
No answer
24
29
33
21
0
March-May 2014
12230/ML/SV/ss/jso
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10
20
32
30
40
50
%
60
70
80
90
100
Suur-Helsinki Tänään 2014
Cafés of Helsinki city centre
© Fazer. All rights reserved
Helsinki Cafes survey 2014
- by Taloustutkimus
* Forum and City Center concepts are not renewed yet
17.7.2015
© Fazer. All rights reserved
Helsinki Cafés survey 2014
- by Taloustutkimus
17.7.2015
© Fazer. All rights reserved
LEARNINGS
 Holistic, customer driven approach
 Tight prioritization – you cannot focus on all target groups
 Value proposition as a red thread
 Multi-disciplinary team both in design and implementation
 Interest in details, enough time & in planning
 Customer validation
 Operations commitment & excitement
 Enough time and resources for training & implementation
 Constant & systematic monitoring after the launch
 The first things first
THOUGHTS,
QUESTIONS?