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    Espresso Case Study

    Uploaded by

    Allan Edward GJ
    The document provides an overview of Illy's Espresso coffee bar franchise called Espressamente. It had over 200 locations across 30 countries focused on premium transit and retail markets. The goal was to be recognized as the authentic Italian bar chain delivering superior customer satisfaction. It also discusses the global coffee industry trends of growing demand and consumption correlated with rising incomes. Specific markets of India, China, Germany, Brazil, Japan, UK and US are examined in terms of their coffee consumption patterns and growth opportunities for coffee shop franchises. Finally, it outlines different types of franchising models used in the food industry.

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    Espresso Case Study

    Uploaded by

    Allan Edward GJ
    36 views10 pages
    The document provides an overview of Illy's Espresso coffee bar franchise called Espressamente. It had over 200 locations across 30 countries focused on premium transit and retail markets. The goal was to be recognized as the authentic Italian bar chain delivering superior customer satisfaction. It also discusses the global coffee industry trends of growing demand and consumption correlated with rising incomes. Specific markets of India, China, Germany, Brazil, Japan, UK and US are examined in terms of their coffee consumption patterns and growth opportunities for coffee shop franchises. Finally, it outlines different types of franchising models used in the food industry.

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    The document provides an overview of Illy's Espresso coffee bar franchise called Espressamente. It had over 200 locations across 30 countries focused on premium transit and retail markets. The goal was to be recognized as the authentic Italian bar chain delivering superior customer satisfaction. It also discusses the global coffee industry trends of growing demand and consumption correlated with rising incomes. Specific markets of India, China, Germany, Brazil, Japan, UK and US are examined in terms of their coffee consumption patterns and growth opportunities for coffee shop franchises. Finally, it outlines different types of franchising models used in the food industry.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    36 views10 pages

    Espresso Case Study

    Uploaded by

    Allan Edward GJ
    The document provides an overview of Illy's Espresso coffee bar franchise called Espressamente. It had over 200 locations across 30 countries focused on premium transit and retail markets. The goal was to be recognized as the authentic Italian bar chain delivering superior customer satisfaction. It also discusses the global coffee industry trends of growing demand and consumption correlated with rising incomes. Specific markets of India, China, Germany, Brazil, Japan, UK and US are examined in terms of their coffee consumption patterns and growth opportunities for coffee shop franchises. Finally, it outlines different types of franchising models used in the food industry.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 10

    ESPRESSO CASE STUDY

    ESSPRESSAMENTE
    ▹ Illy’s own franchised coffee bar with 200 locations in over 30
    countries
    ▹ Served transit retail markets and began to expand to premium
    retail markets
    ▹ Meaning ‘clearly’ or ‘expressly’ in Italian, was meant to purvey
    the original Italian cult of espresso
    ▹ Goal – To be recognized as the only authentic Italian bar chain
    delivering superior customer satisfaction to premium transit
    coffee lovers; to be profitable; and to become a strong stand-alone
    brand
    ▹ First focused on premium transit, retail and service partners
    instead of private dealers

    2
    The Global
    Coffee
    ▹ The Second most heavily traded commodity in the world
    Industry
    ▹ Growing Demand
    ▹ Predicated growth potential
    ▹ Correlation between consumption and disposable income
    ▹ Developed Nations – Highly saturated and aggressive
    competition
    ▹ Many of the larger retail chains looked into international
    expansion
    ▹ High levels of competition in premium coffee shops –
    Starbucks, McDonald’s McCafe, Costa Coffee, Lavazza,
    Tchibo, Segafredo and the Coffee Bean and the Tea Leaf

    3
    INDIA

    • 6th Largest producer of coffee in the world


    • Indians had increased life styles and global trend
    • Income raised and middle class emerged
    • Increased in disposable income and no of working women
    • No of young people grew significantly
    • Cafe coffee day best coffee brands in india extended upward target
    income customer
    • Coffee consumption 6% in 5 year
    • 30% fastest growing industry and 2nd growing to international
    franchise operation operates in country

    4
    China &
    Germany
    ▹ Cultural
    ▹ Administrative
    ▹ Geographic
    ▹ Economic

    5
    Brazil

    ▹ Largest producer of Coffee Globally


    ▹ 2ND in Coffee Consumption
    ▹ Expected growth of 30% in coffee shop industry
    ▹ Growing Franchise sector
    ▹ Strong local brands

    6
    Japan

    ▹ 3rd Largest coffee importer in the World


    ▹ Expected 5.4% CAGR through 2015
    ▹ Innovation rich country, seen as a key to growth
    ▹ Not the most ideal country for Franchising

    7
    UK

    ▹ In 2010 UK Coffee drinkers increased their visit to


    coffee shops
    ▹ Growth of branded coffee outlets remained stable at
    6.1%
    ▹ Shift of Culture from Tea to Coffee
    ▹ Projected significant growth in the next 3-5 years
    ▹ With only few restrictions, UK is one of the easiest
    countries to start and run a business.

    8
    US

    ▹ Consumes 25% of the world’s coffee


    ▹ Ranks 4th out of 183 countries when it comes to
    ease of doing business
    ▹ High income people
    ▹ There is significantly lower potential for growth as
    the market there is saturated

    9
    Types of Direct franchising: Franchisor provide materials, training and other forms to support
    franchising franchisee( who will pay To that). Win Win agreement. Ex: Keventers Milkshake in
    Trichy.
    Area franchising: Allows a franchisee to enter into an agreement to develop a
    minimum number of Outlets within a specified territory. Ex: MC Donald’s
    Master franchising: Allows franchisee to extend Sub- franchise rights within a
    specified territory. Ex : Dindigul Thalappakkatti
    Multi- Unit franchising: Allow the franchisee to operate more than one unit Which are
    usually acquired at a reduced rate per unit. Day-to-day operations. Ex: BG Naidu
    Sequential franchising: Occurs when a franchisee must prove capable of operating one
    franchise before being granted a second and capable of operating two franchises before
    being granted a third. Ex: Tea time
    Joint venture: Created when two or more companies share ownership of a third
    commercial entity and collaborate in the production of its goods or services. Ex: bmw
    and tvs came together to produce new apache RR 310
    Wholly owned subsidiary: It involves buying an existing business or building new
    facilities in a target country. Ex: Reliance

    10

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