Caff-Vergano Case Study Essay
B) Decision We have decided to concentrate our research on Germany and Finland which present the greatest potential .
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 …show more content…
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 …show more content…
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