Summary
Established in Italy, Illy and its own franchise Espressamente, have become well-known, established brands and chains of coffee houses, respectively. Both the brand and the chains of coffee houses are known internationally and strive to serve authentic and high-quality coffee to its customers around the world. As coffee continues to grow as one of the most traded commodities in the world, the coffee market becomes a competitive one and Espressamente finds itself up against some of the biggest names in the coffee market in the world. Its main competitors being companies such as Starbucks, McDonald’s McCafe, Lavazza, and Costa Coffee to mention a few. In addition to facing other brands, Espressamente has selected a few countries that …show more content…
There were numerous countries presented in the case and each country has its own sets of pros and cons. The process of selecting which country to enter is the main problem because the chosen country will influence other aspects of marketing such as the entry method. There are multiple components that need to be considered when looking at whether entry to a certain country is going to be profitable and successful or the opposite. Key factors that were looked at in this case for each contending country were the following: coffee consumption, coffee shop concentration, income per capita of the top 10 per cent of the population, GDP per capita, ease of doing business ranking, most attractive segments, and coffee sales. Exhibit 4 outlines all the following factors and it is visible that each country differs from the other based on each individual factor. Each factor is important to consider as it can influence the market response to Espressamente’s entry. Additionally, deciding which country to enter will influence the type of market entry method used. A few of the different types of entry methods are direct franchising, area franchising, master franchising, multi-unit franchising, or joint venture. The method of entry is important because it may be risky to start a new franchise if the market is different from that of Italy’s. But this again, depends on the country chosen to enter. The country chosen to enter is the basis for every other decision that will be made in the
Established in Italy, Illy and its own franchise Espressamente, have become well-known, established brands and chains of coffee houses, respectively. Both the brand and the chains of coffee houses are known internationally and strive to serve authentic and high-quality coffee to its customers around the world. As coffee continues to grow as one of the most traded commodities in the world, the coffee market becomes a competitive one and Espressamente finds itself up against some of the biggest names in the coffee market in the world. Its main competitors being companies such as Starbucks, McDonald’s McCafe, Lavazza, and Costa Coffee to mention a few. In addition to facing other brands, Espressamente has selected a few countries that …show more content…
There were numerous countries presented in the case and each country has its own sets of pros and cons. The process of selecting which country to enter is the main problem because the chosen country will influence other aspects of marketing such as the entry method. There are multiple components that need to be considered when looking at whether entry to a certain country is going to be profitable and successful or the opposite. Key factors that were looked at in this case for each contending country were the following: coffee consumption, coffee shop concentration, income per capita of the top 10 per cent of the population, GDP per capita, ease of doing business ranking, most attractive segments, and coffee sales. Exhibit 4 outlines all the following factors and it is visible that each country differs from the other based on each individual factor. Each factor is important to consider as it can influence the market response to Espressamente’s entry. Additionally, deciding which country to enter will influence the type of market entry method used. A few of the different types of entry methods are direct franchising, area franchising, master franchising, multi-unit franchising, or joint venture. The method of entry is important because it may be risky to start a new franchise if the market is different from that of Italy’s. But this again, depends on the country chosen to enter. The country chosen to enter is the basis for every other decision that will be made in the