Caff-Vergano Case Study Essay

719 Words 3 Pages
A) List of Markets that satisfy our success criteria
Finland
Germany
Austria
USA
Sweden

B) Decision We have decided to concentrate our research on Germany and Finland which present the greatest potential .

1.Germany

a ) Social factors:- Increased consumer interest in premium coffee such as Nepresso, which is an easy preparation and has a premium taste . Caffè Vergnano is clearly selling in this path which is a great point for the brand .

b) Competitive Landscape :- The competitive environment in cafes/bars is highly fragmented in Germany, with the leading brand Mc Café having only 2% share. It’s a great opportunity according the fact that Caffè Vergano could easily break into a new market without main leader who control the market
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This specific environment may do the difference with another country with stricts political environment . A franchise may be created with no major difficulties and remain stable among years .
d) Potential customer and size:- Large potential market of 79.8 million residents, 86.7% of them are potential consumers in age group 15+. This is a great factor which may play a lot in the success of a caffè Vergnano franchise .
e) Strength : One of the largest coffee consumers in Europe (approximately 3 cups per day), 150 liters of coffee per year - more than beer, wine or mineral. Germany are huge consumers of coffee , so there are no doubt that the demand is there and that the proportion of potential consumer will be huge
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Quite unknown brand;High rental costs, assuming coffee shop is located in city center.
Even if the German market present a lot of strengths and opportunity , caffè Vergnano will have to face some specific threats and difficulties . The major point is the fact that the brand will begin from nothing in Germany . Even if the brand is originally from Italy , she will be quite unknown in germany , so the key of the success of a franchise will reside in her strategy of communication .
In addition , cost of disposable and installation will be quite high , so it may be a consistent investment but the potential return on investment is huge as well

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