Strategic Planning Illy Espressamente

On the other hand, cocoa culture in Vietnam is established and strong since colonial time. Globalization and economic growth develop ab step up two important growing departments that Supersaturates should target Globalizes (well- educated, CARS-focus, globally influenced) and Brand Chasers (novelty, status-seeking). There are several deferent options for expansion nevertheless after careful consideration and analysis we adopt to the conclusion that Supersaturates should reintroduce Itself In Vietnam. In hunting lodge to capture these segments, we propose fling inspirational economic value and theatrical performance as impertinent divisions of a Blue Ocean.Additionally, we also come up with strategies for two other potential marts, Ger umteen and India. The strategy is to make Supersaturates Vietnam a all-owned subsidiary and establish 11 vent-holes in Ho chi Mini, Vietnam in the next 6 years, offering maestro Italian deep brown helper by providing high character and e thically grown burnt umber with nice Italian ambiance to two targeted segments Globalizes (experts and Viet bring outse who care about the surroundings and arts) and Brands Chasers ( peck who value tops(predicate) crisscrosss), through 5 Italian metropolis-theme designed outlets (Aroma, Venetian, Annapolis,Florence and Milan) with exhibition of local artworks, high-end cafe bars located in shopping nerve centers and art galleries, associated with visible theatrical performance by the baristas and stopping collaborating with irascibility Dhal harangue dingdong. The implementation plan In the next 6 years for this strategy (research, operation plan and winning care of relevant necessary documents) suggests penetration of the securities industry in 201 5 by entering the market as a wholly-owned subsidiary.In 6 years, the total expense cost is estimated to be USED 1235,000 for preparation, gap impertinently outlets, communication plan and operation plan. This implementation plan will ensure the success of the proposed strategy. Table of table of contents 1. 0 Introduction Lily Supersaturates is a franchise drawstring by Lily, stretching over 34 countries and rigorously of coffee berry bean berry-based drinks make from the finest Arabica beans processed with Lily machineries and technique. It has been a stunning success in its home market, Italy and others such as France and Germany, generating millions of revenues.Lily aims to bear on its leadership in the market for authentic Italian cafes by building human relationships with suppliers, change magnitude the number of outlets and differentiating itself from its competitors in term of quality and coffee-drinking deliver. However, the launch in Vietnam has been a fiasco as 3 out of the 5 stores in the country provoke been closed after 4 years of operation. They direct face the decision whether to pull out of the country and move to unrivalled of the countries in the case or reintroduce itsel f in the Vietnamese coffee market with a different strategic approach. . 0 Goals and Objectives handicraft Goals Expand the brand name to global market as the authentic Italian superior coffee inspection and repair and gift service for transit customers. Business Objectives Achieving $1 50,000 revenue per outlet. In the existing markets, make up the total number of outlets by 5% as well as reinforce the operation of the receptive one to achieve 20% increase in profitability in the next 5 years. To wrack out from competitors by Italian coffee service experience (e. G.Italian-themed superior outlets, Italian coffee styles, ware esthetic value to the service experience). Marketing Goals To be sustainable in the current market and conk out top-of-mind brand when consumers search for superior Italian transit coffee. Marketing Objectives Increase the availability of Lily Supersaturates by assailableing at least 8 stores in each country. Offering superior and aesthetical Italian service environment to attract 40% more customers, generating 20% more profit in the next 5 years. 3. Problem Identification From the ACS analysis, Lily Supersaturates is currently facing 2 main problems lack of customer-oriented offer and lack of word picture in the Vietnamese coffee market. Firstly, the harvest and service offer is inappropriate as it is perceived to be overpriced and too conservative in making Italian authentic coffee by the Vietnamese customers ho prefers their traditional black and milky coffee made from Robusta beans. Secondly, Lily Separatenesss image could not be seen anyplace except from their outlets.Both of these problems demonstrate the lack of customer insight and selling campaign coming from Supersaturates collaborator Lien Thai stack away Dong Pity. Ltd. This master franchisee has shown inefficiency in investigating the customers wants and needs and what Supersaturates offers. Besides, the company is incapable in managing coffee chained shops as well as running effective marketing campaigns (Appendix E for more details). . 0 Situation Analysis existing chained coffee brands but also new entrants, primarily due to woeful market barriers and high concentration.Moreover, the Vietnamese customers are not familiar with the taste of Arabica coffee beans. High threats of substitutes (fruit Juice/ smoothie bars) and low coffee consumption per capita combined with high price maintain a negative impact on Lily Supersaturates. However, acting in the companys favor is its Italian brand name that is well perceived by the Vietnamese consumers. A sort out from this, in that respect are segments that pursue higher tender statues via branded reduces.In addition, the impacts of globalization as well as the development of sophisticated taste in coffee bring significant opportunities for Lily Supersaturates to penetrate the market. With these come increased concerns for ethics and sustainability coming from the growing segment of global ly influenced people. Lily Supersaturates weaknesses lie in understanding customer insight leading to key problems and the lack of integrated marketing communication strategies to promote the brand in such high concentrated market like Vietnam.However, having one the est. quality coffee in the world, enabled by strong relationships established by conducting ethical works with suppliers, the brand still has the capabilities to overcome those difficulties and expand their market share. (Refer to Appendix for details) Direct competitors Highland Trunk Nagyn Cataracts drinking chocolate Bean & Tea Leaf Gloria Jeans Angel-in-us Indirect competitors Medium-large Independents Street vendors Strengths (S) High quality coffee beans Strong reign over over the production chain Expertise in processing Italian coffee Strong relationship with suppliers Foreign brand name preferred by VietnameseLily has conducted Corporate Social Responsibility via its supply chain by remunerating the farmers h igher compensation for higher quality Weaknesses (W) Lack of expertise in processing Vietnamese coffee as in growing, harvesting, roasting and filtering Unnecessary cost due to inefficient logistics Small outlet talent Lack of market exposure Lack of gross sales promotion Large debt Transit lay does not fit with Vietnamese culture Opportunities (O) Admiration for Italian brands Growing segment of status-conscious people, who like to be seen in a branded environment.Growing segment of ethics-conscious people who are educated abroad Vietnamese has pick out to a coffee-drinking culture ever since Customers have been developing a sophisticated taste in coffee Vietnam is the 2nd largest coffee producer and Arabica production is growing (5% to 8%) SO Strategies Maintain high quality coffee served to match with the increasing sophisticated taste of Vietnamese people.Penetrate the market by being the leader in high quality product Utilize the strength of foreign brand name in communicat ion Target the growing segment of ethics-conscious and internationally educated people by stating the companys CARS (care for farmers) WOO Strategies Sourcing part of the production chain to Vietnam To penetrate on growing segments to increase in sale to make up in debts by having high-end outlets.Threats (T) Fierce competition between chained coffee shops High threat of new entrants High threat of substitutes Low supply of Arabica in Vietnam Low consumption of coffee, compared to global scale cheekiness seeking Vietnamese people are not familiar with Arabica coffee beans SST Strategies Penetrate the market by focusing on premium quality, rather than competing on price Focus on relationships with Vietnamese Arabica growers to consolidate local apply WET Strategies Avoid in going into a price-war with other competitors to increase sales by keeping premium price for premium quality Avoid introducing Robusta coffee beans but bring new taste in the market Differ to other competitors in term of having small capacity yet high-end outlets 5. Strategic Solutions and Situation Scenarios Strategy 1 To achieve $500,000 revenue per store by 2018 by offering a holistic package of high-quality and ethically-grown Italian coffee as well as an aesthetically and intellectually stimulating coffee experience to a segment of well-educated and episcopate Germans in transit, who are come to for CARS and appreciative of modern arts, through outlets adorned with arts, glassware and merchandises showing Separatenesss efforts in improving the environment and the growers biography condition.Description Cups and dishes will have artworks from modern artists and a piece of information on how sustainable the product is made or how Lily contributes to help the farmers in its supply chain printed on them. However, ein truththing will be kept negligible and sleek, adhering to the current theme. They might be modified in the preparation period as ell as in the middle and end of the 5-year plan to be updated. Merchandise sales, either on separate notice or on the design, will state clearly that part of the profit will go to people in need, R helping lessen the products carbon footprint and impact on the environment. Potentials Higher sales, not except from food and drinks but also from merchandises Reinforce the image of Supersaturates in customers mind Higher profit delimitation since Germany is close to Italy (approve. 500 kilometers between Rome and Berlin) The extreme costs of acquiring artworks and fancy decoration The messages come out as pretentious Situation Scenarios Strategy 2 To establish 5 outlets in India in the next 5 years, offering a high quality Italian coffee and prestigious experience to a segment who seeks for a higher social status and novelty of the population, through luxury-designed outlets on rajah Street, New Delhi, India. Description Prestigious experience Customers visiting Lily Supersaturates will experience the luxury service environm ent designed base on Italian interior style as well as well- ingenious waiters serving at the table.The superior coffee service given can place significant feeling on the customers and spread the brand value proposition as he authentic Italian cafe. Higher social status and novelty seeking segment Since India has very high power distance (Hefted 2013), it is indicated that people want to confirm their status and be recognized using premium product/ service brand. Figure Hefted value of India (Hefted 2013) Rajah Street, New Delhi, India this street is considered to be The Royal Street of India in which many luxurious retailers and hospitality ventures located. By setting Lily Supersaturates outlet in this area, the level of exposure to target customers is higher.Potentials Risks massive market of growing middle class First mover advantage as the market has low level of competition Lack of acceptance from a tea-drinking population Banking system and bureaucracy may draw a blank b usiness Strategy 3 To become wholly-owned subsidiary and establish 11 outlets in Ho Chi Mini, Vietnam in the next 5 years, offering superior Italian coffee service by providing segments Globalizes (expatriates) and Brands Chasers (people who value superior the baristas and stopping collaborating with Lien Thai Bin Dong. Description Stop collaborating Lien Thai Bin Dong does not do well in term of marketing for its partners (Appendix E).Hence, Lily should end the collaboration and take full control over the new outlets operation and communication. Vietnam government will allow foreign wholly owned subsidiary from January 201 5 (distinguishing 2013) hence, Lily Supersaturates has one year for taking care of legal documents and business preparation. Globalizes we chose this segment because they are well educated as well as leaning toward healthier, more ethical and artistic lifestyle. Hence, they will appreciate the value propositions of Lily Supersaturates, which is high quality and ethically grown coffee alongside with the artistic ambiance. Moreover, this segment also wants self-identity hence, fitting with Lily Supersaturates offers.Brand chasers this segment prefers to be seen using superior brand name product/service. Therefore, it is sufficient for Lily Supersaturates target this segment. By establishing 5 Italian city-themed outlets, 1 high-end bar in shopping mall and 5 high-end bars in the art galleries with mentioned tactics, Lily Supersaturates can get closer to the targeted customers and transfer the image of superior Italian experience to them. Potentials Lily Supersaturates can be more active in marketing campaign and have more control ever the business by stop collaborating with Lien Thai Bin Dong Co. The preparation time increases Lily Separatenesss likelihood to success.More in-depth research for the market can be made in this period. The artistic and ethical value will attract globalizes and superior value will attract the Brand Chasers. By pr oviding the Italian city themed outlets, Lily Supersaturates can emphasize on the Italian experience provided to its customers. The high-end bars located in galleries require less financial investment. However, the customers the galleries bring to Lily Supersaturates. Lily Supersaturates will have more work to do in terms of market researching to understand the local consumption behavior and handling with Vietnam regulations. The 5 Italian city themed outlets required heavy financial investment. 6. Recommended Strategy and Justification In terms of per capita coffee consumption, Germany ranks the highest across the 3 countries. Although Vietnamese taste differs from Indian taste of coffee, across all walks of life. India on the other hand, is a low-competition, untapped market. On the contrary, Germany is a saturated market with various different established competitors. The ease of doing business in Germany is the lowest, while Vietnam comes second and India is the hardest with hi gh barriers of bureaucracy. Three strategies above aim to penetrate different markets. Although each market has their potential, the first two markets can cause some problem for Supersaturates.The first one to be eliminated is India market. Although in that respect are less coffee industry concentration and the match of taste between Indian people and Lily Supersaturates product, India has a tea-drinking culture with the slow switching toward coffee. Moreover, since Supersaturates currently does not possess any outlets in this neutron, it is very hard for the firm to establish their business due to the nation baking system and bureaucracy. In fact, India bedded 17th out of 189 countries in term of starting business (The World Bank 2013). Therefore, Supersaturates should not open its store in India. Secondly, Lily may also face difficulties penetrating Germany market.Despite the substantial coffee drinking market, Germanys coffee industry has very high level of concentration and sa turation, which leads to fierce competition. Hence, it is tremendously hard for Supersaturates to stand out from the clutter to be successful. The recommended strategy is strategy 3, penetrating Vietnamese globalizes and brand chasers by offering premium and ethical-grown coffee as well as authentic Italian service with artistic and novelty value. Although there are high threats of substitution and fierce competition, about 64% Vietnamese people have positive(p) sentiments toward Italian brand and about 58% people link Italian brand with luxury (Miami and recollection 2012).Hence, the value proposition of Supersaturates to Vietnamese market is appropriate and has a high chance of success in this market. Eliminate Price Reduce Raise Ambiance Availability Augmented products Social status packaging Create Inspirational Value (Arts) Theatrical Performance (Baristas coffee-making process) ambiance. By conducting a blue-ocean strategy, which includes avoiding price competition and addi ng an element of inspiration, Lily Supersaturates separates itself from the current competition and carves a new niche for premium coffee. (Refer to Appendix H for details) 6. 0 Bibliography simply I and Leasers M 2012, The Espresso Lane to Global Markets, Richard Vive School of Business, Ontario, Canada.