A REPORT ON EXCELSO COFFEE

HEADING ON AUSTRALIAN COFFEE MARKET.

Written for Imelda CarthySwinburne College

Written by Dinh Van Anh Dang (Vicky)Vivi viviNguyen Yen Thi Hai (Jenny)Si Chen

Submission date: 11th January 2008

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Executive Summary

This report examines the new brand of coffee called Excelso imported into Australia

market. The Excelso is worth-imported because it brings the supreme quality from

Indonesia coffee beans –which are well known as the world number four coffee

producers. This report also analyses the Current situation, SWOT, PEST and

Marketing Mix and relevant information for the company to follow to start a new

product from Indonesia into Australia. The market surveys some information of

Australia top coffee to compete with Excelso Coffee beans. The brand name

credibility –Kapal Api Group as the mother company is incredible high, because of

that the Excelso created more opportunities for company. Besides Excelso has some

weakness occurred because of the distance for distribution and also the challenge to

compete with another big and strong competitors that has already existed in

Australian market. To be successful in Australian market, Excelso needs to implant

strategies including lower price than average coffee prices in Australia, bunch of core

benefits from the product, product placement in the big supermarket like Coles,

Safeway, coffee beans shops, hotels, and restaurant, and for the promotion, the

company has created website for cheap advertising and several non-personal media

such as TV, newspapers, and magazines. By implementing these stategies, hopefully

Excelso will retain and achieve the objectivity which is prevent the competition with

lower price and can lead the company to the next level objectivity which is profit

maximisation.

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Table of ContentsEXECUTIVE SUMMARY..........................................................................................1

TABLE OF CONTENTS.............................................................................................2

LIST OF FIGURES/TABLE.......................................................................................4

1.0 INTRODUCTION..................................................................................................5

1.1 PURPOSE...............................................................................................................51.2 METHODOLOGY....................................................................................................51.3 SCOPE...................................................................................................................51.4 BACKGROUND.......................................................................................................5

2.0 CURRENT SITUATION:.....................................................................................7

2.1 COMPANY BACKGROUND......................................................................................72.2 SERVICES..............................................................................................................72.3 QUALITY POLICY..................................................................................................82.4 REASON FOR ESTABLISHING THE EXCELSO IN AUSTRALIA..................................8

3.0 SWOT ANALYSIS:...............................................................................................8

3.1 STRENGTH:...........................................................................................................83.1.1 Price:.............................................................................................................83.1.2 Quality:.........................................................................................................93.1.3 Brand Credibility..........................................................................................93.1.4 Ease of acquiring the supply.........................................................................9

3.2 WEAKNESS............................................................................................................93.2.1 Transportation...............................................................................................93.2.2 Lack of knowledge in Australian market.....................................................103.2.3 Non Fair-trade product agreement.............................................................10

3.3 OPPORTUNITIES..................................................................................................103.3.1 Great interest shown by Australian toward coffee (lifestyle in...................10Australia)..............................................................................................................10

3.4 THREATS.............................................................................................................113.4.1 Competitor Factors:....................................................................................113.4.2 Impact of legislation....................................................................................11

4.0 PEST ANALYSIS.................................................................................................12

4.1 POLITICAL...........................................................................................................124.1.1 Labelling Requirement................................................................................124.1.2 Political and Democratic Stability of Australia..........................................12

4.2 ECONOMIC..........................................................................................................144.2.1 Taxation.......................................................................................................144.2.2 Tariff............................................................................................................15

4.3 SOCIO-CULTURAL...............................................................................................164.3.1 Population living.........................................................................................164.3.2 Attitude........................................................................................................164.3.3 Custom.........................................................................................................174.3.4 Lifestyle.......................................................................................................174.3.5 Value...........................................................................................................17

4.4 TECHNOLOGICAL................................................................................................17

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5.0 MARKETING MIX.............................................................................................18

5.1 PRODUCT............................................................................................................185.1.1 Core benefit.................................................................................................185.1.2 Actual product.............................................................................................195.1.3 Augmented...................................................................................................20

5.2 PRICE..................................................................................................................215.2.1 Internal Factors..........................................................................................215.2.2 External Factors..........................................................................................21

5.3 PROMOTION........................................................................................................235.3.1 Advertising..................................................................................................235.3.2 Sale promotion............................................................................................24

5.4 PLACE.................................................................................................................24

6.0 CONCLUSIONS..................................................................................................25

7.0 RECOMMENDATIONS.....................................................................................27

Bibliography...............................................................................................................28

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List of Figures/Table

Figure 1: Political stability in Australia is judged 4th best globally and first in the

region……………………………………………………………………….12

Figure 2: Company Share…………………………………….……………………………17

Figure 3: Excelso Coffee Beans Prices for Australian Market……………………….21

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1.0 Introduction

1.1 Purpose

The purpose of this report is to import Indonesian coffee called Excelso by

Kapal Api Group, the giant Indonesian coffee producer into Australian market.

1.2 Methodology

To gathered the information, we have been researched from EBSCOHOST,

Euromonitor International, Excelso Official website, Australia investment

official website, Marketing text book, and other several websites that support

our report.

1.3 Scope

The report covers with several areas contain: the Australian market current

situation, SWOT analysis, PEST analysis, and Marketing Mix.

1.4 Background

Kapal Api Group is one of the large coffee company with the nationwide

presence in Indonesia. Excelso Multirasa PT was established by this parent

company to be the most specialist coffee shops in all big cities in Indonesia.

Excelso Café was known as the largest specialist coffee shops with the various

services and the satisfied quality of coffee brand, one of them is Excelso.

In addition to its extension, the company is strengthening its presence in other

countries by opening more units in Sharjah(U.A.E), Jeddah (Saudi Arabia),

Amman (Jordan),Dubai and Shanghai (China)(GMID 2007).

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With the number of units of the Excelso café is increasing dramatically (from 11

retailers in 2001 to 52 retailers in 2006), the company is improving existing

establishment, to keep them with the most design and the professional services

to different kind of customers. However, the operation of the Excelso brand was

limited in Indonesia and some countries in the Middle East region and it is not

considering an extension in Australia.

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2.0 Current situation:

2.1 Company background

Excelso Multi Rasa PT was constituted in 1990 by the enormous coffee

company, Kapal Api group. It was opened to be the first specialist coffee shops

with the brand of fresh coffee beans, Excelso. Also include the supplying coffee

beans to hotels, restaurant, and others cafes.

Excelso Café has become the largest specialist coffee shop brand with 52 shops

in more than 15 cities in Indonesia. With the huge population of coffee

production, the company also released the coffee-grinder and coffee-maker in

high quality but the price is lower than imported brands (GMID 2007).

2.2 Services

Excelso Multi Rasa has expanded its activities by opening different useful

services:

de’ Excelso: café resto with graceful design, personal services with

the biggest selections in food and drinks.

Kafe Excelso: first-step to introduce Excelso product to Indonesian

community, and it became the ‘trendsetter to all coffee lovers across

Indonesia’.

Excelso Express: café-fast food concept with the quick preparation

for people who need coffee on-the-go.

(Excelso-coffee 2006)

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2.3 Quality Policy

Excelso was achieved the ISO 9001:2000 Certificate for the satisfaction in the

quality of coffee production and the Museum Rekor Dunia Indonesia (MURI)

Award for the “First Café in Indonesia to have achieved ISO 9001:2000

Certificate” (Excelso-coffee 2006).

2.4 Reason for establishing the Excelso in Australia

“A cup of coffee is a daily occurrence for many Australians” (Hot drinks in

Australia 2007). So the coffee industry has been developed dramatically and

Australia has been a good market place with vast amounts of consumers for

some companies to establish their coffee product. Excelso is one of the most

favourite coffee brands in Indonesia and it is also popular in some foreign

countries. Therefore, Australian market will be the next suitable place for

Excelso to establish their fresh coffee beans and set the new trends of

Indonesian coffee for coffee drinkers in Australia.

3.0 SWOT Analysis:

3.1 Strength:

3.1.1 Price:

Excelso coffee beans uses high quality Indonesian coffee beans that are roasted

in the country, unlike those international brands which generally roast their

beans overseas (GMID 2007); therefore, Excelso offers lower price than others,

but respectfully with high quality and taste.

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3.1.2 Quality:

The quality of the Excelso coffee beans is undoubtable, because it is still in the

beans so that the taste, smell, essential oil in the beans will still stay there, unlike

coffee powder processing which will make the essential oil disappear. That’s

why Excelso is so excellent.

3.1.3 Brand Credibility

Excelso was the second ranked brand in chained specialist coffee beans with a

24% value share of sales in 2006. The brand’s value share decreased by almost

nine percentage points between 2001 and 2006 ;in terms of actual value sales;

however, Excelso Café experienced an impressive increase from Rp7.5 billion

in 2001 to Rp137.4 billion in 2006 (GMID 2007)

3.1.4 Ease of acquiring the supply

Indonesia is the world’s 4th biggest coffee producer (Yusoff 2005). Because of

the intelligence of Indonesian speaker and culture, it will be easy to connect

with the supplier from Indonesia, negotiate the price and always fulfil stock of

coffee in the chain markets and supermarkets in Australia.

3.2 Weakness

3.2.1 Transportation

When determining the mode of overseas transport, it is important to consider

both shipping and outland. Whilst shipping rates are always less expensive than

outland, most shipping rates are subject to much higher minimum charge than

outland rates but it takes longer time than plane. With outland services, it may

shorter distribution time but it takes higher expenses.

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3.2.2 Lack of knowledge in Australian market

Because Excelso coffee is a brand new Australian imported product so Excelso

doesn’t have enough knowledge and information about Australian market trends

when the other competitors, who established their products previously, they got

more experience than Excelso does.

3.2.3 Non Fair-trade product agreement

Excelso product is not in the fair-trade agreement which can decrease the

interest from Australia society that care about coffee farmer’s economical

condition. They are very poor in some of growing country. They even don’t

have enough finance to fulfil their basic needs for themselves and their families.

3.3 Opportunities

3.3.1 Great interest shown by Australian toward coffee (lifestyle in

Australia)

Australia has huge market on coffee and the espresso machines.  Not only

because of the flash increasing business of café  in Australia, it’s also because

of the customers have become more discerning and they often looking for the

“café taste” from their coffee, even when it is consumed at home (GMID

2007).  And Excelso coffee beans is so suitable for Australian market because

Excelso is the café coffee supplier in Indonesia and Excelso even has its own

café.  The number of coffee transactions grew by 7% and value sales grew by

almost 29% at 2005 and showing no sign of slowing in 2006 and 2007.  Sales

of coffee through supermarket channels were worth about $58 million in 2006

and growing faster.  And this numbers were being help by the selling of

espresso machines and coffee maker machines,  at 2006 retailers sold more

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than 200.000 espresso machines and coffee maker machines in Australia and

the market is still growing (GMID 2007).

3.4 Threats

3.4.1 Competitor Factors:

Coffee industry in Australia was growth significantly with a rapid expansion in

the number of chained and franchise coffee outlets as Starbucks and Gloria

Jean’s -two famous café which are firmly established in many big cities such as:

Sydney, Melbourne, Brisbane, Canberra and some other areas (Starbucks: 76

outlets, Gloria Jean’s: 310 outlets). Furthermore, Vittoria (Cantarella Bros Pty

Ltd) and Lavazza (Lavazza SpA, Luigi) was remained as first and second

respectively in fresh coffee, with the volume share of 45% and value share of

53%(Hot Drinks-Australia 2007).Therefore, this will be an obstacle for the

Excelso café to consume to sell with a brand new coffee product between many

strength rivals and it can be vulnerable to reactive attack by those major

competitors.

3.4.2 Impact of legislation

Excelso will be a new entrant in Australia and it will be affected by the

government for the legislation of importing new product into Australia such as:

political stability, labelling requirement, and taxation. So the company has to

fulfil all of the requirements from Australian government to import Excelso in

here. So the company has to aware from the Australia Custom Agency and all

of the requirements can create bigger expenses for the Group.

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4.0 PEST Analysis

4.1 Political

4.1.1 Labelling Requirement

The Commerce (Trade Descriptions) Act 1905 (CTDA) and the Commerce

(Imports) Regulations 1940 (the Regulations) set out the requirements for goods

imported into Australia (Commerce Markings 2007). It includes that any

imported product has to have the correct labelling on the product in English,

prominent and legible characters .The most important one is requiring trade

description, and including the name of the country where the goods are made or

produced (certain items are also required to bear a true description of the goods).

Excelso has already fulfilled the requirements in general and Excelso is so ready

to enter and deal with Australian market.

4.1.2 Political and Democratic Stability of Australia

Australia is the country with awesome political stability, and also providing the

investors or companies a huge confidence and consistency to spreading their

businesses. In fact, Australia has the lowest risk of political instability in the

Asia Pacific region and fourth lowest risk in the world; it can be see clearly in

this chart below:

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Figure 1: Political stability in Australia is judged 4th best globally and first in the region

(Source: Commonwealth of Australia 2005 )

According to the chart, Australia gets 9.5 score for the stability and below

Austria, Ireland, and Luxembourg. And following Australia is Switzerland, New

Zealand, Singapore, Netherlands, Germany and Canada.

Australia also boasts an open, efficient and transparent legal framework with

low corruption rating, rating ahead of the US, the UK, Canada and most regional

countries (Commonwealth of Australia 2005). It means that Australia has their

strong enforcement law and respected law regulation system that can guarantee

investors and their society for their safeties. That’s why the company can

establish The Excelso coffee beans into Australia without fears of chastity,

because Australia has stable government and political consistency.

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4.2 Economic

4.2.1 Taxation

4.2.1.A Double tax agreement

Australia’s taxation regulation for the non-resident company is being arranged

by the Federal Commissioner of Taxation, who is headed of Australian Taxation

Office. The regulation shows that Excelso coffee beans product as non-resident

company has to pay the tax to Australian government. A non-resident company

is taxed on its Australian source income (apart from dividends, interest, and

royalties, which are subject to withholding tax) at the same rate as resident

company with 30% amount of their income, but some non-resident companies

may be free from Australian tax regulation due to the double tax agreement.

The double tax agreement is the agreement of Australia with various countries

to prevent the double taxation of their income. The main purpose of this

agreement is to borderline Australia’s taxation authority in the income from

another nation and country and vice versa. Apart from the subject from tax

withholding, the double tax agreement usually deal with taxation income within

several area:

business profit

real property income

shipping and air transport income

Certain wages, annuities, and pensions.

(Baxter, Cox, Mann 2005).

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Indonesia is one of those various countries that made their agreement with

Australia. So by this agreement, our Excelso Company has to pay double taxes

for Indonesian government and also to Australian government. And by this

term of condition, the company has to incriminating some of the tax expenses

through the price of the product itself in Australia by currency differentiation

between Rupiah (Indonesia) and Australian Dollar.

4.2.1.B Import Taxes

Australian Government validated a broad-based Goods and Services Tax

(GST) of 10 percent on most supply chain of goods and services that are being

consumed in Australia. For imported goods, importer pays the GST and also

with the custom duty to the Australian Customs Service on monthly / quarterly

basis. But all of these taxes are not calculated if the products’ existence is

temporarily. This regulation applies only for the imported goods that remain

exist in Australian market (Kirkham 2004).

4.2.2 Tariff

Australia used to hide their industry behind the tariff protection in the twentieth

century and now Australia releases their industry by reducing their tariff. And

for the last 2 decades, Australia has moved their economy stability into the next

level through the tariff reduction in the imported product area, increased

productivity, and advanced international competitiveness. The tariff reduction

program has already reduced 48 percent of Australia’s tariff lines to zero, and 35

percent of tariff lines to five percent.  About 86 percent of the tariff rates are

between zero and 5 percent (Kirkham 2004). By the Tariff Concession Scheme

(TCS) importers can free from the tariff for the imported goods which is the non

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substitutable goods produce in Australia and also for the consumer for this kind

of products. And more than 99% of Australian tariff are counted as the value of

duty. Because of the tariff reduction program, so Excelso coffee company

doesn’t have to pay big amount of maybe for this concession which can make

another higher expenses which means that greater price for the consumer.

4.3 Socio-Cultural

4.3.1 Population living

Australia is the multicultural and open market country; the society can accept

pieces of others country culture, and surprisingly, most of the Australian like to

enjoy another culture that exist in the society. Australian population aged from

18 to 24 are outgoing age group where the social participation greater than other

group. About 89% of the group going out to have coffee therefore it provides a

rich market for impulse coffee. Also the population of the aged group over 65

have higher require of coffee because they drink more coffee than young aged

group so Australian is the great place to import Excelso coffee (GMID 2007)

4.3.2 Attitude

With a brand new product as Excelso, Australian has more attempts to try a new

coffee with difference coffee tastes between Western and Asian (Indonesian),

sweet and bitten. For example, cat poo coffee (kopi luwak) from Indonesia has

already established into Australia from 1953 and it was successful so Australian

will like Indonesian taste.

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The socio-cultural consist of customs, lifestyles and value, etc, that characterize

the society. Excelso needs to influence its ability of the firm to obtain resources

make its goods and services, and function within the society in Australia.

4.3.3 Custom

Excelso had its own custom and ever same with any custom in Australia. It was

specifically designed to market the brand and to create the right image for

Excelso Coffee.

4.3.4 Lifestyle

Coffee is a Western lifestyle. Coffee appeals to adventurous, open-minded,

young, affluent, urban consumers. Excelso have targeted Australian people as

the main target market for our coffee. The key issue is how to convince these

consumers that Excelso is a beverage to be drunk regularly rather than just a

passing fad and providing Australian customers a best lifestyle of Indonesian

coffee and make it suitable with their taste buds.

4.3.5 Value

Adding value to coffee is an important part for each coffee type in the world.

Same with Excelso, Kapal Api Group have advanced packaging methods,

scientific methods of quality control or control environments so the coffee still

can keep its Indonesian coffee savour when they arrive into Australia.

4.4 Technological

To make it convenient, the company has already provided the official webpage

(WWW. Excelso-coffee.com) to interact easily and cheaply for the customers

overseas. The webpage also provides the customers with online order service,

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that’s can cut down the distribution chain. That’s mean that the company want

to maintain the relationship with the customers. Besides that, by using the

webpage, it can decrease the advertising expenses.

5.0 Marketing Mix

5.1 Product

Figure 2: Company Shares

(Source: GMID 2007)

According to the chart, packaged food of Kapal Api Group in 2001 and 2002

stayed the same at 0.75. At 2003, Kapal Api had highest percent on packed food.

From 2004 to 2006 the percent of retail value breakdown. The value was breaking

down because of in 2004 until 2006 the world coffee market was experiencing the

deficit from coffee that available (Siagian 2003).

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5.1.1 Core benefit

The core product is the benefit of the product that makes it valuable. Excelso

coffee offers some benefits to our health that reducing disease risk such as helps

relieve headaches, inhibits sleep, blood pressure, etc.

Help relieve headaches

A cup of coffee can relieve the symptom. In recent study 301 regular headache

sufferers took a combination of a recognized painkiller and caffeine (Can coffee

help relieve headache?). Many people claim that caffeine in a strong cup of

coffee can relieve or even end it if it consumed in very early stage of headache.

Inhibit sleep

Coffee gives us a boost during the day and of its well know immediate affect on

keeping people alert. It may means to take longer to fall asleep.

Blood pressure

Coffee might not increase the threat for high blood pressure over time as result

from long time studies was showing.(Coffee health service).

5.1.2 Actual product

Improving quality

Kapal Api Group recognized grading system for quality of coffee that provides a

good cup quality of coffee for customers, trying to improve the balance between

supply and demand by inspiring demand through the condition of a better

overall ordinary quality to Australian market. These products will be imported

with the best quality of Indonesian coffee bean.

Packaging

Kapal Api Group concerned about environment so the packaging for products

which could be re-cyclable . The labelling requirement is arranged by the food

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standard Australian New Zealand under the food standards code. It must include

nutritional identification, key ingredients, foods that may cause allergies, date

marking, direction for use and storage, statement of quantity. Suppliers have to

describe all of that correctly (Kirkham 2004). The package of product must be

describing the origin of its country.

5.1.3 Augmented

To fulfil the consumer needs, Kapal Api group make a good image that means

good relationship with customer so Kapal Api group created a hot lane services,

provide additional value to the customer’s purchase such as group’s coffee

official website or phone that help customers can easily order and receive

delivery within the high customer services.

Excelso also gives you a wide range coffee, which helps you easily choose a

coffee to suit your taste buds. There are two main types of Excelso available

coffee:

Single Origin Coffee:

This type of coffee is Indonesian coffee which provide Indonesian coffee taste

that totally different from Australian available coffee.

Blend Coffee:

This is international coffee such as Arabika, Robusta, The Classic and House

Blend. Our company provides this kind of coffee is to adopted International

taste that usually existed in coffee market.

Excelso also pride itself in being innovative in creating many coffee infused

drinks, both hot and cold. Some favorites are the Avocado Coffee, Coffee Float,

Mega Mocha Shake, Pearl Coffee and Frappio, which is a frozen drink

consisting of coffee and choice of different flavors.( About Excelso 2006)

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5.2 Price

5.2.1 Internal Factors

Marketing Objectives

The objectives from the company to enter Australia’s market is to prevent

competition from others international well-known coffee in Australia’s market,

so Excelso determined the products with low prices that achievable but in the

premium fine quality.

Marketing-mix strategy

To set up the right prices for Excelso, the company has to coordinate the

decisions with the product design, promotion, and distribution. To determine

the target price, the good company has to determine the target cost for the

distribution, promotion, etc to bring the coffee beans achieve the objectives.

Because the manufacturer of Excelso coffee is in Indonesia, distribution like

freight inward can be cost consume.

5.2.2 External Factors

Competitors

From competitor point of view, based on the extensive research, the prices range

for Australia coffee market is $9.60 to $15.30 (GMID 2007). So we believe the

suitable, yet competitive prices for our product are listed on the table below.

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Figure 3: Excelso Coffee Beans Prices for Australian Market

In addition, this designated price was determined also because Excelso will be

new in Australia and Penetration pricing is effective pricing strategy to compete

with competitors. And it is still in the introductory stage, so by reducing the

prices, Excelso can attract larger market segmentation.

The market and demand

Australia has big interest on coffee, statistic shown that, coffee sales in the

Australian market increased every year from 2001 until 2006; the demand of the

coffee grew from 4.873,8 in 2001 and was crawling up in 2006 at the value of

6.137,4 (GMID 2007). Indonesian coffee in Australian market is really taking

the part, such as: Kopi Luwak (Australian usually calls it Cat Poo Coffee),

No Products Price

1 Kalosi Toraja $10.00

2 Mandhelling $12.50

3 Java $11.00

4 Arabika $12.00

5 Robusta $10.70

6 The House Blend $14.5

7 The Classic $13.00

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Starbucks etc. As can be seen that Indonesian coffee taste is acceptable in

Australia and people will buy the coffee because of the popularity of Indonesian

coffee taste which is will effect the name of Excelso coffee from Indonesia but

with lower prices and supreme products.

5.3 Promotion

For the budget of the promotion, the company is going to use the objective-and-

task method. The objectivity for the product is brand liking/preference, so the

company has to do a lot of advertising to achieve the objectivity.

5.3.1 Advertising

To be attractive Australian consumers, company need to focus on the advert to

introduce Excelso as a brand new interesting coffee brand by non-personal

media such as newspaper, magazines, and advertising with motion picture.

The target audience is people aged over 65 (retirement), that’s why we

are going to set the timing for our advertising in the day time for TV

media.

And by newspaper, we are going to use business newspapers and

magazines such as The Age to aim the business workers.

Advertising is very expressive and it can ‘build up a long-term image for a

product’ (Kotler et al. 2006)

Excelso provides quickest way to interact with their customer by the internet.

The company has commercial services on the net (www.Excelso-coffee.com) so

that is easier for Australian demand and product sales. Methods of advertising

can be print media such as newspaper and magazine. People improve efficiency

and speed of customer service.

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5.3.2 Sale promotion

‘Sale promotion uses short-term incentives to encourage purchase or sales of a

product or services’ (Kotler et al. 2006). Excelso can use sale promotion to

attract Australian consumers’ attention and encourage them to try new product

with the awareness of price instead of staying with their current choices (Kotler

et al.2006)

5.4 Place

In fact, place is concerned with various methods of transporting and storing

goods, and then making them available for the customer. Therefore, the

company needs to focus on finding a good place to introduce the brand new

product like Excelso to Australian consumer. It is better to sell Excelso coffee

in the busy streets, supermarkets, shopping centres, restaurants, hotels, etc. By

doing it, the product will be easily recognize by the customers.

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6.0 Conclusions

On the basic of the findings, the following conclusions have been reached:

1. Excelso café is one of the largest specialist coffee shop brands with a lot of

excellent services to different kind of customers.

2. Excelso uses high quality Indonesian coffee beans with excellent taste and it is

easy to connect with the supplier in Indonesia, negotiate the price and provide

stock of coffee into Australian market.

3. Excelso still has some barriers to import product into Australia, such as :

disadvantage from transportation, lack of knowledge in Australian market and

Non Fair-trade product agreement.

4. Beside of establishing the coffee beans product into Australia, Excelso can

extend its activities by introduce different kind of Excelso café(de’ Excelso,

Kafe Excelso, Excelso Express) and import espresso machines and coffee

maker machines in Australia.

5. As a brand new product, Excelso has to be opposed to many strength rivals

and to be aware of some affection from the legislation of Australian

government.

6. The company can establish Excelso coffee beans into Australia without fears

of chastity, because Australia has stable government and political consistency.

However it still has to be imposed in double tax agreement , imported tax and

the tariff .

7. Excelso can find its place in the market easily because Australian society can

accept new products and services from overseas.

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8. With the useful homepage website, it is easy for Excelso to connect with the

customers around the world.

9. Excelso provides a high coffee quality which can satisfy Australian coffee taste

buds. Product of Kapal Api Group concerned good environment so the Group

improved the quality of product and re-cycle packaging.

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7.0 Recommendations

1. Australian Agent should stay with the Excelso low price to attract more

Australian consumers because Excelso still in the introductory stage.

2. Agent should do heaps of advertisement for Excelso coffee due to this is the

first time Excelso entering the market.

3. It is better to put the Excelso coffee in the busy streets, shopping centres,

supermarkets, hotels, and restaurants.

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