Practical Product Positioning of Umpqua Oats

Umpqua Oats nutritious, delicious and fast oatmeal has only been in our warehouse for a couple of weeks now, but it’s already flying out of here! The demand for a quick, easy and healthy oatmeal option is becoming an expectation at the retail level – just ask McDonald’s and Starbucks.

The best part about Umpqua Oats? You can offer a high quality product with almost no capital investment on your part. If you have a hot water source and a spoon, you can serve Umpqua Oats in your business. Concerned about employee waste? Portions are easily controlled – just add water to the fill line printed on the tub and pass along to a customer.

We’ve been asked a few questions about how to position the product in terms of price point and against other items in the coffee house. Here’s a recap of a recent conversation our Thom Swain had with the owner of a multi-unit coffee house owner who has used Umpqua Oats for a few weeks now:

They sell a cup of Umpqua Oats for $3.40. He said customers haven’t really commented on the price, and he’s been happy with sales. When he looks at other breakfast items he sells, such as muffins, scones, etc., the most he will make is about $1 and some change on those items. He used that info in his pricing tactic for the oatmeal.

Market the oatmeal as an alternative to their baked goods, which should attract more health-conscious consumers. Customers may be passing on baked goods if they are watching their calorie count, and since the most that a retailer would make on baked goods is perhaps as much as $1.25 or so, they would then be capturing add-on sales they might have missed otherwise. Further, baked goods have a one-to-two day shelf-life while Umpqua Oats has one year, so, all-in-all, it’s a very low-risk investment for a product that will increase ticket averages.

Other pricing options include:

Offering a combo with a small cup of coffee to add value and make the price point more attractive (e.g., $4.00 for a cup of oatmeal & a 12 oz. cup of coffee).

Offer price breaks for purchasing multiple tubs. Eat one for breakfast and take one to the office for a mid-afternoon snack.

If you’d like to place an order for Umpqua Oats, or if you have any additional questions, please contact us at (800) 835-5943 today!

Mike Adams
Stockton Graham & Co.