Emotional customer connection to a brand is built through authenticity and consistency in delivering promised value, which transforms casual customers into loyal brand advocates who stand with the company through challenges. This connection goes beyond product quality to encompass how the brand makes consumers feel, creating lasting relationships that withstand competitive pressures.
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Deep Dive
What makes a customer emotionally connected to Barista? | MCTalks | Ep 02Added:
[music] >> Welcome to another episode of MC talks, the podcast wing of the Marketing Circle of NSBM Green University.
I'm Yenara Zaman, your host for today.
So, joining us today we have a key figure in the Sri Lankan cafe industry, and that is the CEO of Barista, Mr. Dilupa Pathirana. Welcome to our episode, Mr. Dilupa. Thank you, Yenara.
Thank you for having me.
Okay, so to begin with, Mr. Dilupa, I would like to ask you a basic question like, can you tell about your corporate journey?
Okay, um I was a student of uh university.
Uh I was studying marketing, so I started my uh career as a trade marketing assistant at Unilever. That was my uh intern, university intern. And after that, I joined Sri Lanka Insurance as a brand executive.
And there I worked about a year or so, and then um Asian Alliance Insurance as a brand and channel development manager.
Then I uh joined Rich Life Dairies, which was an FMCG company.
I worked there before I got selected to Lion Brewery as a brand and activation manager there.
I worked at Lion for about 4 and 1/2 to 5 years.
In 2016, I got a chance to uh join the Ceylon Hotel Corporation on their new um mission of opening QSR, Sri Lankan QSR hotel chain, our restaurant chain.
And I joined there as the head of marketing, and I moved up to head of marketing and operations there. And then in 2018, I joined Barista as the general manager.
And from 2018 to today, I'm here. Oh, that's that's a nice journey, I would say.
>> Yes, actually as a marketing person somebody who pursue a career in marketing, I think I have been in all the the positions of a marketing person could you know handle like from assistant to brand executive to assistant brand manager to brand manager to category manager to marketing manager. You know, list goes on.
Okay, so Mr. Dilupa, do you think a degree is needed to lead to a good career or to run your own business?
Okay, uh See, the honest answer from from me is it's an absolute necessity.
But don't get me wrong when I say that because um I think what is more important is the structured education.
So, I hope [clears throat] if you follow first degree uh in a good good university, I think you get a chance to get into that structured education. May it be the government university or private university. It could be your masters or PhD, but what is more important is the structured education.
Why I say that is the most important thing I say I think because in this corporate world in this corporate business environment, it's it's very dynamic. It's It's less forgiving, right? It has become a place where there's no actual actual room for trial and errors.
So, when you have a great foundation of education, what happens to you is that your lot of what ifs get answered.
Maybes are cleared. So, your guesswork is little so that you don't have to do that trial and error because there's no actually time for anybody to now come to the corporate world and do trial and error because it's very dynamic and chances uh of that you miss the train uh of your guesswork work as a result of your guesswork would be much higher. So, I I believe if you have a structured education, that'll help you to take precision decisions.
And I hope that structured education mostly comes through um a degree or structured education institution. Okay, so that answers the best question. Thank you. And then the next I would ask is can education end or does it have a limit? Does learning have a limit? No, not really. I don't believe learning has a limit, you know, it's an ongoing process. That is why there's a there's a quote also, a very famous one, uh saying um education is from womb to tomb.
And I am a great believer of it and I I hope uh in my life also what I have learned, you know, um in my university about 20 years ago has now absolutely obsoleted because I remember I I scored very well in marketing communication in my university degree.
I think I have an A+ or something, but at that time Zuckerberg Zuckerberg was also schooling.
>> Mhm. There was no digital media and we we we learned all about marketing communication without a single uh you know, lesson of digital media. But if you look at our marketing communication today at Barista, I think good part of our marketing communication is spent on digital media. So, it's a ongoing process. Learning is like it's more of unlearning right now for me and you are getting into, you know, age of 42. It's more unlearning like and you work with young uh you know, executives and you know, ages of 2019.
I I from seeing them and you know, working with them I learn a lot. So, it's it's about a continuous pros- process of learning. And I hope in our organization, we also say our most important advantage competitive advantage is our learning. In the organization, we we take it as uh you know, group learning or team learning.
And uh and I think in a very dynamic environment like this, it could be your best competitive advantage to stay ahead of the competition because the whole company learn as a team and then in evolve and improve things as a team, then it it the such a company is very difficult to defeat in the market. Yes, I think education.
From womb to tomb it is. Okay. So, uh now since this podcast is mainly targeted for future marketers and entrepreneurs, can you tell us about your journey in becoming a CEO from a marketing background?
I would say not in a very very early stage of my career, but in the middle of um my career, I I I really wanted I had an ambition to become a CEO. And you know, it it it uh actually leads me in in some in some occasions to leave some good companies or maybe to say no to some offers because I when I looked at the company, I felt like uh this company traditionally would not have a space for a marketing oriented person to become a CEO. And when I landed here at Barista in 2018 and when I even um you know, choosing um to start my career at Barista in 2018, I felt there was a great opportunity because at that time you being operating um cafes for about 16 17 years only with seven outlets and those outlets are not making good good, you know, results. So, I I felt like this is the the opportunity for me uh to prove myself as a marketeer and become a CEO of this company because I joined as a general manage. From that day onwards, I think we built Barista in the in the belief of the most important asset or strategic asset of a company is a brand. So, I got my team to believe in it and we got that branding all like you know, branding and marketing in all center in the all decision making. We thought about the consumer. We we bring consumer always into our discussion and that is how we built actually this whole cafe chain from eight outlets to 83 outlets today. And still I believe I I mean those days I used to believe brand is the most important strategic asset of an organization. Now, I'm CEO of Barista for about almost 5 years now.
And now I'm convinced that brand is the most important strategic asset of an organization. Okay. So, Mr. Dilupa, one key point I've noticed is the fact that Barista is running out of niche marketing strategies. Do you think this would help diversify into new customer markets?
Yes, it indeed did because going out from niche market was a very deliberate decision because Barista was operating in Sri Lanka for almost 17 years, but we couldn't make a big impact in the in the industry. So, we decided to make we call it we have to generalize coffee. So, we decided that with a lot of you know, effort and a lot of strategic decisions that that we took to get out of this Colombo and you know, connoisseurs and getting into suburbs and you know, technically even even right now you can call it to rural areas of Sri Lanka because we operate 84 outlets now in 15 districts of Sri Lanka. Uh the whole the strategy was based on three pillars.
One was affordability and then accessibility and then brand equity. And of course what we wanted to do was to give people more reasons to come to a cafe not only for coffee but but for connections, but for socializing, but to do their work also in cafe to find a space for them to you know rewind and you know sometimes recharge and sometimes connect with people or reconnect with themselves. So by giving a lot of reasons for people to come to cafes actually that is what fuels the whole cafe culture here in Sri Lanka and that's what allowed so many other cafes also to operate in Sri Lanka. So the industry if you say grew I think at least by tenfold uh with that decision and I'm very happy that most of the other cafes who was also believing in that niche marketing approach is now believe slowly trying to believe in this mass marketing approach.
>> Okay. So Mr. Dilupa, what has been the biggest challenge you faced as CEO and how did it shape your leadership style?
Okay, so far um in my career the biggest challenge I think it was COVID.
Uh COVID was a very different from all the other challenges because it actually uh it attacked the core of our business.
Because cafes are all about social connection, but if you remember COVID calls for social distancing. Mhm.
Right, so it it really affected or it really attacked attacked the core of our business, social connection. And also it actually the uncertainty that was there during that time was the most difficult thing to um you know to to handle.
For an example, it affected the whole ecosystem of business for the employees, customers, supply chain, investors, everybody was affected. Like it it left nobody.
It attacked everything and in the business. So, that uncertainty and that vulnerability and then then no clear ending to that whole situation was was the biggest challenge that I faced. And as a leader, what what I really um also understood was it was more showing up uh even without you don't know what's the outcome at those days like you know it used to be uh for my team to be be clear about that that your boss or your leader is also in the game with with them in the same boat. And in fact, um I was I used to say to my team if if if you can't run, you have to walk. If you can't walk, you have to crawl. But you have to make sure that you move forward and you're moving forward to the right direction. That that was the only thing that I could say to them and I I have to you know do that in practice also.
And I I used to uh you know uh have have have chat with them like every day. Like there's a very limited team that we had to run the operation.
We came down from nine uh 450 now it's to two out of operations. So, every day I have to come because my vehicle was one of the permitted vehicle. So, I have to bring about five people to work and then you know take five people. So, in my calendar in 2020, I have 72 days I have come to work without a leave. Like technically every day I had to come. So, I was saying like if you're going through hell, there's no point of staying, so you just keep moving. So, that was that was the most difficult situation, to be honest, because it challenges all conventional thinking about business, about the business models, about how we engineer our menus. So, it questioned everything of your business.
And And the good thing about COVID for us also, I I personally believe COVID was the turning point of Barista.
Because when we enter when I enter 2018, there were some good cafes. They had some benefits over us. They had some advantages over us. But what COVID did was they took everybody in the same line. And thereafter, the people who are more vigilant, more knowledgeable, more education and with about strategies, more resistant, got the opportunity to take the lead.
So, that was I also think it it it was the turning point of Barista also. We took right decision. We had people with good knowledge. And we were resilient. And we got the advantage. Okay, so it all depends on the leadership as well.
And the team also.
>> Yes. Okay, so the world is being more digitalized, I would say. Uh what are the digital marketing strategies that Barista used to gain sales?
Yeah, I think I earlier mentioned also, digital marketing is we take it very very seriously. Uh in fact, uh it's about 60 to 60 to 70% of our marketing budget is now allocated for digital marketing and strategies uh that goes with it. Uh if if you talk about strategies, I always say content creation is is is the crown of the strategy, because we need to create good content. We need to create content that uh educate our customers, uh engage with them and you know, even the the content that they really like to you know, spend some time with. So, that content creation is very serious. We we do it with a lot of people resources around us. And then of course, the use of social media handles like what are the channels that we use and what is our tone, color, and personality all these procedures that it's uh, that that each channel you know, requires and probably I would say the TG also the target audience target groups that we targeted through these digital channels are slightly different and their likings are different, the way they you know, interpret information is also different.
So, we are very aware about all these and we're very careful also handling all these social media channels. And also it is not only for awareness, it's for the conversation. It was to learn about them as well. So, every time we put out content on social media handles, we also learn the behavior the consumers well.
So, it's a learning two-way communication two-way. And then we also do search engine optimizations that is a very important thing as far as a big brand like Barista's concerned because we want it to be the top of the mind and we all always want if somebody's searching for a cafe, if somebody's searching for a place to work, if somebody's searching for a coffee, we have to be there at the top. So, search engine optimization as a strategy we take it very seriously. And also some paid digital advertising on social media is also another strategy when we need a quick boost of awareness or maybe we need quick traffic to get some promotions going. We do that as well.
So, social media strategy per se is very important it that's given the strategic importance of our organization. It's not just a communication with it, it's how we build the brand. So, it's a more brand building investment than just communication for Barista.
>> [music] >> So, we will be moving on to the rapid fire segment, which is a fun segment. Um Mr. Dilupa, what is your personal favorite at Barista? Pol Sambol and baby shrimp sandwich. Very nice. Okay, that's nice. So, where would be the next Barista outlet and what's the reason for you to open it there? Next one will be um in Polonnaruwa. It's Thursday we are opening.
Uh because uh Polonnaruwa doesn't have great coffee. So, if Barista was a brand personality, how would you describe it in three words? I would say confident, young, and aspiration. If you had to describe Barista's target audience in one sentence, how would you describe them? Same. Confident, young, and aspiration. So, moving back on, Mr. Dilupa, tell us how you're trying to improve the consumer proximity with your brand with partnerships and other collaborations such as the Nelligala feature in Nuwara Eliya. And why do you think our collaborations and sponsorships important in a marketing context?
Yeah, it is very important in marketing context because that actually shapes the brand and and and the image of the brand and the brand feel. So, all these associations and all these collaborations we take it very seriously as a brand.
And also we like to be connected to the customer uh with all the things that they like and they love. Uh because coffee is uh not just a commodity, it's an experience. And we wanted to make that whole experience wholesome. With uh music is a great connector. That is why we are seen uh very close to music. And also we uh selected books and book reading. And also we have um uh seen in in recent past this hustle culture uh among the young entrepreneurs and young even university students. So, we wanted to, uh, engage in that as well. Uh, these connections and social like the sponsorships and associations, we say, give us a great opportunity to connect with our customers as well. Like not in the cafes. So, maybe in a musical event or maybe in a in a in a business conference or even in a school debate. So, we go and connect with them and, uh, that gives us, uh, an opportunity to create more memories and more stories about branding. So, if you're building a brand, I think, uh, the positive and meaningful brand associations are very important and that that carries a lot of weight. Okay. So, Mr. Dilupa, cafe culture in Sri Lanka has grown a lot in the last few years, I would say. So, how does Barista stay relevant in such a competitive market?
>> Okay, that is a very, uh, important question. Uh, and a very, uh, deep question also.
Uh, it's a question that we ask every day from us. Uh, but my answer is always simple and my team understand that also.
That is we should be the the cafe that you that that need to be very close, uh, to our customers. And in fact, now, uh, we have 84 outlets, uh, operating in Sri Lanka and we have about 30,000 people coming into our cafes.
So, we have so much of information inside. Just that we need to really dig down and understand, uh, who really our customer is and what he he really needs.
So, we do a lot of analysis and research to understand that.
Who comes to our outlets, when they come, what they buy, with whom they come to our cafes, where do where do they go and sit. What is the best ambient, uh, that they they like to have in our cafes? What is the right level of lighting? Where do they like to park the vehicle? How long each, uh, you know, customer is going to stay?
Even things like what they prefer to order with a cappuccino versus an Americano.
And, uh, you know, there are a lot of information right now inside, um, in the system. So, we wanted to study that so, uh, you know, deeply so that we understand them better. Uh, what is the important of understanding them better is that we can create better value for them.
We can always understand what matters to them. And also, we when you have so much of understanding about the customer, you can also anticipate their next move, which is absolutely important in marketing. And I I think over the last couple of years, we have also understood the the importance of this. And I always say it's, uh, I have saying like I I say retail is it's not my saying, it's a saying from someone else, but retail is detail.
And it's always in that small data, um, that we miss has the magic in it. So, we are very concerned about it. We're still searching what that exact information you wanted to, you know, shape, uh, the business for the next couple of years. And, uh, if you really don't do that, uh, I think, uh, somebody else will take it. So, we don't want somebody else to take it. Uh, that advantage and run. So, we wanted to do it for ourselves. Okay.
So, uh, Mr. Dilupa, this is going to be the question before the last.
From a marketing perspective, what do you think makes customers emotionally connected with a brand? I think what really connects a customer to a brand, uh, is the authenticity and the consistency of it. Okay. Right. So, it's about how much genuine effort a brand takes to deliver what it promised to the customer. And and that is a that is a deep thing, like you know, it's not about sometimes about the quality of your products or even the quality of your service. It's about how that brand makes the consumer feel.
Right? Which is very emotional. Like that is why you ask like how you make with the customer emotionally. So, that always brings out the customers um you know, emotions uh to the brand.
Which is a very important thing in in branding because if you have only customers uh then probably they will uh be gone in in if somebody else issues you something better. But if you have brand advocates yeah, they will stand with you for a long period of time. They will stand uh with you in rain and shine. So, that is a kind of a marketer's dream to have advocates for the brand. Now, for you to do that, they should really need to see that this brand is working so hard to add real value to them. And that effort is authentic and that effort is consistent. Which is what Barista is trying to do. And now that it connects to our vision, our vision says Sri Lankans should not compromise a great coffee experience. Because as Sri Lankans, we have compromised a lot of things. We have compromised best education, best transportation, best entertainment, best medicine. But at least now you are the market leader and you are in control of coffee experience in Sri Lanka. I tell I tell my um team every single day that we are in charge of this. So, at least Sri Lankans should not compromise on their great coffee experience. So, that's the kind of, you You purpose. Sometimes when the consumer feels it, they connect it emotionally.
Yeah. Okay. So, finally, Mr. Dilupa, do you have any advice to give to the marketing students or the younger generation? So, students like you? Yes.
Okay.
I I always have one advice.
And I have been telling this in so many discussions or every time I have a chance to talk to university students.
I I get plenty now.
I always say you have to study marketing thoroughly and very seriously.
Why I say that? Most [clears throat] of the people think marketing is common sense.
Marketing is a subject that you can learn on the go.
I completely disagree with that. I think marketing is a science subject.
For me, marketing is as science as physics and chemistry. There are so many theories that you need to learn, so many metrics that you need to learn, so many concepts there.
So, without learning any of that, uh people think, you know, being able to speak good English or, you know, presentation skills would make you good marketer.
It won't. Right? So, marketer has to learn all these theory subjects so that when they go out in into the market, they should be able to take good decisions without much of errors, like without, you know, I told you earlier, the margins of error is very, very minimal. You don't have much of chances, like probably 10-15 years before. Uh you know, in my era, we used to make mistakes, but now a simple mistake on your marketing campaign on social media can really fire you and, you know, put your company also in trouble. So, what I say is uh it's it's a science subject. You learn it properly and then you go out and execute it to get the best results.
So, first 4 5 years, a lot of learning.
Okay. Okay. So, finally, now we've reached the end of today's podcast and I would like to express my sincere gratitude to Mr. Dilupa for accepting our invitation and graciously coming here for the podcast. And also, [music] all the viewers out there, thank you so much for watching our YouTube channel.
This is MC Talks.
>> [music]
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