Illycaffè: An Italian Coffee Roasting Company

756 Words2 Pages
bulb-icon

Recommended: Starbucks strategy in india advantages and disadvantages

Illycaffè is an Italian coffee roasting company that specializes on the production of espresso and espresso machines. Francesco Illy founded the company in 1933. Today, Andrea Illy is President and CEO, representing the third generation of family leadership. The company has more than 800 employees and reached gross revenue of 361 million euro in 2012. Illy produces one blend in three roast variations: normal, dark roast, and decaffeinated. In addition, Illy offers Monoarabica, single-origin Arabica beans from six different countries: Brazil, Guatemala, Ethiopia, Colombia, Costa Rica, and India.
It marketed a unique blend of coffee drinks in over 140 countries and in more than 50,000 high-end restaurants and coffeehouses. Over time, Illy became …show more content…

Coffee sales across the globe were greatly affected by disposable income and the general economic environment: “Coffee manufacturers depend on a healthy economy and strong consumer spending to drive sales, as consumer spending drives demand for higher priced specialty products.” As the middle class grew in emerging markets, so did prospects for a successful coffee market where the expectation for a premium product was particularly strong. Emerging markets with growing middle classes, such as in China and India, were experiencing high competition among coffee retailers as Western companies expanded. High levels of competition in the premium coffee industry forced players such as Starbucks, the Coffee Bean & Tea Leaf, Costa Coffee and independent coffee shops to continually innovate and adapt their products and offerings to compete in these concentrated and saturated markets.

INDIA’S COFFEE INDUSTRY
Although historically known for its tea culture, India was the sixth largest producer of coffee in the world. Interest in coffee in India, particularly the transition to sophisticated coffee bars, began in the 1990s. Reasons for increase in specialty and gourmet coffee shops are:
1. Indians have increased exposure to international lifestyles and global trends.
2. Income rose and a middle class

Show More
Related

  • Difference Between Biggby And Starbucks

    907 Words  | 2 Pages

    Biggby’s staff creates an exceptionally welcoming and inviting atmosphere, like their neon colored decorations. In addition, Biggby’s drink quality and quantity far exceeds that of Starbucks. Biggby’s baristas are more willing to customize their blended beverages for customers versus Starbucks. People who live in the Midwest may be familiar with Biggby, as it is only a regional company; however, Starbucks is more well-known, because they are worldwide. As Biggby expands, differentiation between the two coffee houses will become more

    Read More

  • Target's Category Management Strategy

    623 Words  | 2 Pages

    Coffee is grown all over the world and is a product that brings hedonic value to the customer. Since this product is consumed on a regular basis by many individuals seeking to meet their hedonic needs, price is very important. Consumers want to feel that they are purchasing a brand of coffee that they enjoy at the lowest price possible. Price harmonization has become a very important concept with the increase of technology, specifically the internet. The internet has allowed consumers the power to easily purchase from varies sellers and producers, both nationally and globally. Consumers have the power to check prices on products or goods

    Read More

  • Confronting the Coffee Crisis

    942 Words  | 2 Pages

    As discussed in class, when demand decreases for a product, companies or in this case producers should exit the market. But when it comes to coffee, producers don’t want to exit the market because the costs of moving out of coffee production are quiet large and farmers don’t have the means for alternatives. The reason being that, farmers don’t have any outside funding to promote efficient diversification and development. Another reason is that there are protection policies from the United States and the European Union that have made it harder for framers to benefit from producing other crops. And yet, the opportunity cost for farmers to switch to another product is higher than the cost of coffee in a low profit market. So, this book discusses different strategies that are being used to help producers get a better advantage to provide a living for their families. Different strategies being used include shade-grown coffee, differentiation of products, organic coffe...

    Read More

  • The Fetishism of Coffee in America

    1123 Words  | 3 Pages

    Ponte, Stefano. 2002. “The `Latte Revolution'? Regulation, Markets and Consumption In the Global Coffee Chain.” World Development. 30(7):1099-1122.

    Read More

  • Beans to a Cup: The Commodity Chain of a Cup of Coffee

    1269 Words  | 3 Pages

    Coffee is a growing part of people’s daily lives. Just before the 9-5 weekdays, and even during the 9-5, it is common for the working class to drink a cup of coffee. To support this accustomed part of our culture, it involves a complex supply chain that allows those coffee beans to turn into a cup that can be consumed. This paper is structured on how Starbucks, the top coffee supplier in the world, can supply its stores, from raw materials to manufacturing, right to the start of someone’s day.

    Read More

  • Starbucks Case Analysis

    1693 Words  | 4 Pages

    The company started its activity in 1971 as small coffee shop located in Seattle specialized in selling whole arabica coffee beans. After being taken over by Howard Schultz in 1982, following a rapid and impressive growth, by mid 2002 the company was the dominant specialty-coffee brand in North America, running about 4,500 stores, 400 international stores and 930 licenses.

    Read More

  • Economic Forces in Starbucks Corporation

    1412 Words  | 3 Pages

    The importance of economic indicators to the strategic planning process in any organization is the ability to benchmark economic conditions that contribute to improve profitability, business growth and market size. Leadership sets up the mission “to establish Starbucks as the most recognized and respected brand in the world.” In doing so, they have created a set of industry-leading, comprehensive coffee-buying guidelines addressing coffee quality, financial transparency, social and environmental responsibility. Starbucks strategy is also expanding market in globally to provide high quality coffee in convenient and visibility locations. They are continuing to innovate and extend the business with imaginative new ready-to-drink beverages and expanded packaged coffee offerings (Starbucks Corporation, 2007).

    Read More

  • Starbucks Coffee and Snack Industry Analysis

    1147 Words  | 3 Pages

    According to IBIS World Report the major players in the US coffee and snacks retail market are Starbucks and Dunkin’ Brands at 36.7% and 24.6% market share respectively with other competitors occupying the remaining market share of 38.7%. The industry is at the mature stage of its life cycle, has low barriers to entry and intense competition and rivalry between the players. The regulation and technological change within the industry is medium (IBIS world report)

    Read More

  • Starbucks Expansion in China

    1734 Words  | 4 Pages

    This case study revolves around Starbucks ability to launch an aggressive expansion in China, a coffee frontier steeped in nearly 5,000 years of tea, Starbucks location-scouting skills and marketing savvy will be put to the test. This case study involves three questions: 1) Should Starbucks continue its expansion in China? 2) Will the Chinese be persuaded to drink coffee instead of tea after 5000 years of no consumption of coffee? 3) Will Starbucks current marketing plan work in China without advertising?

    Read More

  • coffee

    1056 Words  | 3 Pages

    The market for coffee is an Oligopoly where there are four primary multinational corporations which dominate the industry which include: Kraft General Foods, Nestle, Proctor & Gamble and Sara Lee. In a...

    Read More

  • Starbuck’s and the Environment

    952 Words  | 2 Pages

    Coffee is a worldwide cash crop of which demand has exponentially increased over the years. “Coffee is (after oil) the world’s second most important traded commodity” (Cleaver 61). Competing coffee brewing companies wage war on offering the freshest, best tasting coffee the market has to offer. With such stiff competition there must be enough coffee beans deemed to be good enough in quality to supply the increasing demand. Starbucks can be considered one of today’s top competitors if not thee top coffee manufacturer presently in business. This successful company has had a huge impact on the coffee industry as well as the world. They have gone through great length to provide consumers with an excellent product as well as create a legacy that shows how to best go about running a massive corporation while keeping the environment clean and healthy.

    Read More

  • Analysis of the Starbucks Corporation

    5208 Words  | 11 Pages

    In the United States, coffee is the second largest import (Roosevelt, 2004). Furthermore, the United States, consumes one-fifth of all the worlds¡¦ coffee (Global Exchange, 2004). The present industry is expanding. It is estimated that North America¡¦s sector will reach saturation levels within 5 year (Datamonitor. n.d.). According to National Coffee Association (NCA), 8 out of 10 Americans consume coffee. In addition, it is estimated that half of the American population drinks coffee daily. The international market remains highly competitive. It is estimated that 3,300 cups of coffee are consumed every second of the day worldwide (Ecomall, n.d.). The latest trends included dual drinkers, an increase in senior citizens...

    Read More

  • Starbucks: A business model for success now and in the future

    1470 Words  | 3 Pages

    Koehn, N.F., Besharov, M.A., & Miller, K. (2008). Starbucks Coffee Company in the 21st Century. [Case study]. Boston, MA: Harvard Business School Publishing.

    Read More

  • Innovation Report For Instant Coffee

    1836 Words  | 4 Pages

    Around 1910, an American chemist, G. Washington, created a more refined water-soluble powered coffee, which had a better taste and was marketed on a broad scale. It was the first time that instant coffee was mass produced owing to such a meaningful innovation of instant coffee and Washington's brand "Red E Coffee” dominated the instant coffee market in the United States for 30 years (Thomson, 2006).

    Read More

  • Evolution Of Starbucks Coffee

    1210 Words  | 3 Pages

    I decided to choose a brand that is recognizable and beloved by most of the world. One with very little negative connotations surrounding it in common conversation. After researching the company extensively, and with very little difficulty given its popularity, I’ve learned just what makes Starbucks Coffee such a powerhouse of a company. They have outshined all other companies related to the coffee industry in terms of profit, storefronts, and worldwide reach. All of that growth and development from a company that sprouted only 46 years ago in Seattle Washington.

    Read More

More about Illycaffè: An Italian Coffee Roasting Company

Open Document