Kiem Nguyen - Italy Coffee Market - Colombia Coffehouse Market Entry Analysis Power Point

7/31/2019 Kiem Nguyen - Italy Coffee Market - Colombia Coffehouse Market Entry Analysis Power Point

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Colombian Coffeehouse Chain

Market Entry Analysis


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Coffee is one of the most popular beverage globally

Well-known for its taste and aroma, Colombia

Arabic coffee is a prefer coffee in ItalyWith over 200,000 caf and at $1.8B Italy coffee

market is both highly competitive yet profitable

Presentation will cover Colombia and Italy coffee

industry, SWOT analysis, Porter Five Forces Modeland Recommendations.

Introduction


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Colombia Arabic coffee is traditionally grown in a very

unique environmental conditions which allows it toproduce a very distinctive aroma and taste.

Colombian coffee exports are value at 2.8 billion dollars,approximately 0.8% of Colombia gross domestic product(GDP)

Colombian coffee industry is monitored and regulated by

Colombia Coffee Growers Federation (FNC)Juan Valdez Caf, a FNCs house brand, dominating

domestic market and expanding in both US and EUmarket.

Colombia


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Italy is one of the largest coffee importer in the EU

Italy hot drinks market generated $2.7B

68% of income came from coffee, value at $1.8B

Italy coffee market is highly saturated andcompetitive, with over 200,000 caf nationwide,roughly 70% of the market are dominate by 3 large

companiesWhile coffeehouses are popular, 70% of coffee

consumed are at home.

Italy


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SWOT Analysis

Strengths Colombia coffee quality is

well known and prefer in

Italy market Recent studies showed that

regularly drinking coffee gainhealth benefits such asprotections against diabetes,dementias, heart problems,cancers and strokes

Large consumers based due to66% of Italy age demographicare 15-65, top destinations totravels also increaseconsumers based

Weaknesses Highly saturated and

competitive market with over

200,000 caf 70% of the market are

dominate by 3 large company 70% of coffee consumed were

at home Juan Valdez is the only

authorized coffeehousecompany to sell ColombiaCoffee in the EU

Possibility of trademark andlicensing infringements


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SWOT Analysis

Opportunities Italy coffee consumption

is stable and expect toincrease despite recession

Specialty and gourmetcoffee are relatively newand have less competition

International Coffee

Organization coffeepromotion campaignincreased consumerawareness, thus lowercost to advertise

Threats Coffee is a commodity

that highly affected byweather, thus coffeeprices is very unstable

Italian consumers aretrendy, thus tastes andpreferences may change

Readily availablesubstitutes and newhealthy products posed asa threat to coffeeconsumptions.


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Competitors With large number of vendors as well as

the domination of a few large company, the threats ofcompetition in Italy coffee market must be taken intoaccount

Potential of new entry Starbucks and Juan Valdez arestrong possible competitors that have large availablecapitals, experiences, and presence in the global coffeeindustry

Substitute Traditional style coffee still play adominance role in the industry. Healthier substitute suchas fruit blended drinks or frozen yogurts are also affectconsumer tastes and preferences

Porter Five Forces


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Suppliers Colombia Arabic-coffee is highlydemand globally. Prices and availability can affect

business operation, thus needed to self-supply orcarefully monitored.

Consumers Italian consumers are trendy, andmajor specialty and gourmet coffee consumers are

younger generation, this group of consumers arelikely to have tastes and preferences change rapidly.

Porter Five Forces


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Study and understand business practices andcustomer relation managements in Italy culture

Research and differentiate product to better fitconsumer taste and preferences

Analyse competitive ability, financial commitment,considering cooperate or join venture with

established businesses to increase competitiveadvantage as well as minimize financial risks.

Recommendations


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Cooperate with farmers or develop self-producecoffee production to minimize cost while controlling

supply availability.Considering join venture with domestic company

such as Juan Valdez to effectively penetrate foreignmarket.

Recommendations


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http://ico.heritage4.com/heritage/heridata/ico_pdf_docs/cy2010-11/documents/icc-106-11e-outlook-2010-

2019.pdf

http://www.federaciondecafeteros.org/particulares/en/nuestro_cafe/el_cafe_de_colombia/

http://colombiareports.com/colombia-news/economy/20733-colombias-coffee-exports-valued-at-28m.html

http://www.federaciondecafeteros.org/particulares/en/nuestro_cafe/cafe_juan_valdez/

http://ico.heritage4.com/heritage/heridata/ico_pdf_docs/cy2010-11/documents/icc-106-11e outlook-2010-2019.pdf

http://360.datamonitor.com.ezproxy.lib.usf.edu/Product?pid=3698EBC6-DDC8-4F1D-9A3E-15A2DD4C7B89

http://www.webmd.com/food-recipes/features/coffee-new-health-food

https://www.cia.gov/library/publications/the-world-factbook/geos/it.html

https://gain.fas.usda.gov/Recent GAIN Publications/The Italian Coffee Market 2010_Rome_Italy_12-3-2010.pdf

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