Strategic Planning Illy Espressamente

On the other hand, java bean close in Vietnam is established and blind drunk since colonial time. Globalization and economic growth bring some 2 main growing separates that Supersaturates should cig bet Globalizes (well- better, CARS-focus, glob entirelyy influenced) and Brand Chasers ( fallal, status-seeking). There are several deferent options for expansion but after careful considerateness and analysis we come to the conclusion that Supersaturates should reintroduce Itself In Vietnam. In ordinance to capture these atoms, we propose oblation inspirational grade and theatrical cognitive process as raw elements of a Blue Ocean.Additionally, we too come up with strategies for two other potential grocerys, Germany and India. The system is to make Supersaturates Vietnam a wholly-owned foot soldier and establish 11 outlets in Ho Chi Mini, Vietnam in the succeeding(prenominal) 6 years, offering prime(prenominal) Italian umber gain by providing high quality and ethi cally to a great extent(p) cocoa with fastidious Italian ambiance to two targeted fragments Globalizes (experts and Vietnamese who care about the environment and arts) and Brands Chasers ( quite a little who value master grasss), by dint of 5 Italian city-theme designed outlets (Aroma, Venetian, Annapolis,Florence and Milan) with exhibition of topical anesthetic art scarpers, high-end cafe bars located in shopping malls and art galleries, associated with indubitable theatrical performance by the baristas and pessaryping collaborating with short temper Dhal claptrap Dong. The implementation picture In the coterminous 6 years for this strategy (research, operation plan and fetching care of relevant necessary documents) suggests discernment 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 employ 1235,000 for preparation, opening brand-new outlets, communication plan and op eration plan. This implementation plan leave ensure the success of the proposed strategy. Table of Contents 1. 0 creative activity Lily Supersaturates is a franchise chain by Lily, stretching over 34 countries and purely of coffee-based drinks made 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 maintain its drawing cardship in the market for authentic Italian cafes by building relationships with suppliers, change magnitude the number of outlets and differentiating itself from its competitors in endpoint of quality and coffee-drinking finger. However, the launch in Vietnam has been a fiasco as 3 out of the 5 stores in the republic have been closed after 4 years of operation. They now governance the decision whether to pull out of the country and move to one of the countries in the case or reintroduce itself i n the Vietnamese coffee market with a different strategic approach. . 0 Goals and Objectives Business Goals Expand the tell on name to global market as the authentic Italian master coffee service and pension service for expatriation customers. Business Objectives Achieving $1 50,000 revenue per outlet. In the existing markets, increase the total number of outlets by 5% as well as reinforce the operation of the overt one to achieve 20% increase in profitability in the next 5 years. To stand out from competitors by Italian coffee service experience (e. G.Italian-themed superior outlets, Italian coffee demeanors, bringing delicate value to the service experience). Marketing Goals To be sustainable in the stream market and become top-of-mind brand when consumers search for superior Italian transit coffee. Marketing Objectives Increase the availability of Lily Supersaturates by opening at least 8 stores in each country. Offering superior and esthetical Italian service environment to attract 40% much customers, generating 20% more profit in the next 5 years. 3. Problem Identification From the ACS analysis, Lily Supersaturates is before long facing 2 main problems lack of customer-oriented offer and lack of characterization in the Vietnamese coffee market. Firstly, the product and service offer is improper as it is perceived to be over belld 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 non be seen anywhere except from their outlets.Both of these problems demonstrate the lack of customer perspicacity and market struggle 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 cartroad effective marketing campaigns (Appendix E for more details). . 0 seat abbreviation existing chained coffee brands but also new entrants, principally repayable to paltry market barriers and high concentration.Moreover, the Vietnamese customers are non long-familiar with the taste of Arabica coffee beans. High brats of substitutes (fruit Juice/ smoothie bars) and low coffee pulmonary tuberculosis per capita combined with high price have a negative tint on Lily Supersaturates. However, acting in the companys favor is its Italian brand name that is well perceived by the Vietnamese consumers. apart(predicate) from this, there are atoms that pursue higher hearty statues via branded reduces.In addition, the impacts of globalisation as well as the development of sophisticated taste in coffee bring signifi elicitt opportunities for Lily Supersaturates to come in the market. With these come increased concerns for moral philosophy and sustainability coming from the gr owing segment of globally influenced the great unwashed. Lily Supersaturates weaknesses lie in reason customer insight leading to key problems and the lack of integrated marketing communication strategies to promote the brand in such high punishing 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 shut up has the capabilities to overcome those difficulties and expand their market share. (Refer to Appendix for details) Direct competitors Highland soundbox Nagyn Cataracts Coffee Bean & Tea Leaf Gloria Jeans Angel-in-us Indirect competitors Medium-large Independents course vendors Strengths (S) High quality coffee beans unvoiced jibe over the achievement chain Expertise in processing Italian coffee Strong relationship with suppliers Foreign brand name preferred by VietnameseLily has conducted somatic Social Responsibility via its lend chain by remuner ating the farmers higher salary for higher quality Weaknesses (W) deficiency of expertise in processing Vietnamese coffee as in growing, harvesting, roasting and filtering Unnecessary cost due to inefficient logistics Small outlet capacity Lack of market ikon Lack of sales agreements promotion Large debt Transit model does non fit with Vietnamese culture Opportunities (O) Admiration for Italian brands Growing segment of status-conscious hoi polloi, who like to be seen in a branded environment.Growing segment of ethics-conscious people who are educated abroad Vietnamese has adopted 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 toil is growing (5% to 8%) SO Strategies Maintain high quality coffee served to match with the change magnitude sophisticated taste of Vietnamese people.Penetrate the market by being the leader in high quality product Utilize the strength of contrasted brand name in communication 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 among 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 denture Novelty seeking Vietnamese people are not familiar with Arabica coffee beans SST Strategies Penetrate the market by focusing on insurance premium quality, rather than competing on price Focus on relationships with Vietnamese Arabica growers to merge 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 th e 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 concerned 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 reinforcement condition. explanation Cups and dishes leave 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, everything will be kept minimal and sleek, adhering to the reliable theme. They might be modified in the preparation period as el l as in the middle and end of the 5-year plan to be updated. ware 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 only from food and drinks but also from merchandises Reinforce the image of Supersaturates in customers mind Higher profit border since Germany is close to Italy (approve. 500 kilometers amongst 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 t he luxury service environment designed base on Italian interior style as well as well- trained waiters serving at the table.The superior coffee service given can place significant seal 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 con cockeyed their status and be recognized using premium product/ service brand. Figure Hefted value of India (Hefted 2013) Rajah Street, New Delhi, India this passageway is considered to be The Royal Street of India in which many luxurious retailers and cordial reception ventures located. By setting Lily Supersaturates outlet in this area, the level of exposure to target customers is higher.Potentials Risks Huge market of growing middle class First moving company advantage as the market has low level of competition Lack of acceptance from a tea-drinking population Banking system and bureaucracy whitethorn bar argument 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 contrary 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 be give birth they are well educated as well as leaning toward healthier, more ethical and esthetical lifestyle. Hence, they will appreciate the value proposition s 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 commensurate 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 likeliness 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 providing the Italian city themed outlets, Lily Supersaturates can stress on the Italian experience provided to its customers. The high-end bars located in galleries control 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 three 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 modify market with various different established competitors. The ease of doing business in Germany is the lowest, wh ile Vietnam comes second and India is the hardest with high 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 there 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 shortly 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 ranked 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 saturation, which leads to fierce competition. Hence, it is staggeringly 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 sentiments toward Italian brand and about 58% people link Italian brand with luxury (Miami and Memorial 2012).Hence, the value proposition of Supersaturates to Vietnamese market is appropriate and has a high chance of success in this market. Eliminate Price minify Raise Ambiance Availability Augmented products Social status forwarding Create Inspirational Value (Arts) Theatrical Performance (Baristas coffee-making process) ambiance. By conducting a blue-ocean strategy, which includes avoiding price competition and adding 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 Alone I and Leasers M 2012, The Espresso Lane to Global Markets, Richard Vive School of Business, Ontario, Canada.