Marketing PlanDavidoff Coffee, Tchibo Company

Executive summaryDavidoff global coffee business: Davidoff coffee company Tchibo from Germany famous, Tchibo is Germany's largest manufacturers of coffee processing factory and business, it is headquartered in Hamburg in 2003, it's coffee market in Germany share accounted for a third. Tchibo was founded in Germany, two years ago, sales reached $ 4.6 billion. This was originally a coffee business of operating companies in recent years in Hamburg, Germany ling shou industry quickly emerged as Germany's largest consignment company, the world's fifth-largest coffee seller. Now, with the further development of the world economy, Tchibo's business network has spread to the world, Davidoff coffee as the company's flagship brand, Tchibo has perceived the whole world, in Asia, the situation of the development of coffee Davidoff is good. Davidoff 2002, the first public appearance, at present in Eastern Europe, the Middle East and Asia (China, Korea, China Taiwan, Hong Kong, China, Singapore, Malaysia the Philippines) can see Davidoff coffee presence. In South Korea, sales and catering industry, the market share of Davidoff coffee steadily; in China Taiwan, has been well-known coffee Davidoff is obvious; in China, despite Davidoff coffee to the time is not long, but in Chinese food service industry experts --- Man Delin fine efforts of food companies encouraging prospects, Davidoff coffee will also be accepted by more and more people.IntroductionTchibo is a German chain of coffee shops and cafés, also known for its weekly-changing range of other products. In Germany, Tchibo's slogan is "Every week a new world". The company is based in Hamburg, Tchibo's coffee is sold in supermarkets in the United States, the Czech Republic, Romania, Turkey, Hungary, Ukraine, Syria, Israel, Jordan, Russia and Poland. On the Isle of Man in the UK, Shoprite sells its coffee as well as clothing, household items, electronics and electrical appliances.The Tchibo holding company, which in 2007 changed its name from Tchibo Holding AG to maxingvest ag, is owned by the Herz family, one of the wealthiest families in Germany. Tchibo was founded in 1949 in Hamburg by Carl Tchilling-Hiryan and Max Herz and still maintains its headquarters in the north of the city. The name Tchibo is an abbreviation for Tchilling and Bohnen (beans, i.e. coffee beans). During its formative years, Tchibo concentrated on a mail order service of freshly roasted coffee beans, processed in the company's own roasting facility in the Hamburg district of Hoheluft. In 2006, the rights for the brand Davidoff café remained with Tchibo. The company’s reorientation program was presented to Tchibo employees at a staff meeting on 7 December 2007. The new motto "Stärken stärken 2010" ("Strengthen our strengths in 2010") is intended to convey that all changes associated with the programme are to be concluded by 2010, by when the company hopes to have returned to its traditional strengths and growth.In the UK, following a consultation period, Tchibo GB decided to close half of its existing retail stores and re-structure the

head office and field teams. The UK board was streamlined from 11 directors to four.On 26 November 2008, a Tchibo spokesman announced that the concessions in Somerfield and Sainsbury's would close in 2009 and blamed difficult macroeconomic conditions in Britain. Tchibo's lack of success in the British market was summarized in the Retail Week, 14 February 2008 issue, in which Tchibo was described as "a glorified pound shop". It has since been confirmed that Tchibo GB would leave the UK market 'as soon as possible'; all of the Tchibo GB stores were closed by the end of October 2009. Also the UK online webstore closed 1st September 2010.Tchibo has started distribution of its brand Davidoff café to the US. For more than 60 years a synonym for coffee passion and pleasure.The company was founded in 1949 and has its roots in the idea of merchants Max Herz and Carl-Tchiling-Hiryan to send roast coffee by mail - a business concept revolutionised the coffee market. Tchibo is one of Germany's largest international active consumer goods and retail companies that employs approximately 11,000 employees and posted in 2010 sales of € 3.4 billion. Tchibo stands for a unique business model combining the highest expertise in roasted coffee, coffee in its own coffee bars and the weekly changing variety of consumer goods and services.

Situation analysis

Political Forces

In the past, International Coffee Organization implemented a set of past quota system, let the consumer demand for coffee products over the control of the market, keeping prices relatively stable. At present, Coffee Organization by exciting the demand of coffee in emerging market, reducing insect damage in losses and improve marketing and quality level id order to achieve price equilibrium, enhance long-term competitiveness of coffee growers, help eliminate poverty. In addition, from 2007, German political and social situation is generally stable.

Economic Forces

German economy out of stagnation of weakness for many years, showed a steady, strong recovery. Per capita coffee consumption remains at 150 liters per year, the trend of ready-to-use now to make coffee becoming growing strongly. Those economic phenomena clearly reflect the higher requirements of the coffee and coffee related products. At the same time, 75 percent of German consumers are ready to eat roasted grains and coffee.

Sociocultural Forces

In 1972 the company supplied its customers in the out-of home market for the first

time with coffee. Today, Tchibo Coffee Service is one of the leading coffee-food service provider in Europe and underlines its quality leadership as partner of business customers and bulk consumers in the hospitality and hotel industry as well as in the workplace and community board with a holistic brand concepts. We offer not only high quality coffee specialities and filter coffees, but also individual complete solutions that are designed for different application fields and be tailored to the needs of each client. The comprehensive package of services for our customers is under the motto "We make our customers more successful!".

Technological Forces

As a brand, Tchibo has a keen awareness of quality for its products and services. This is implemented through a multilevel company's internal quality management system that is based on the elements of DIN / ISO 900ff and guarantees the central quality assurance. Quality assurance measures from receiving to the process control to storage and transport are defined and documented. In our production facilities is ensured that all goods are produced only under the strict quality standards and product specifications. All Tchibo Coffee Service products are delivered in accordance with food regulations, which for us the latest version always shall prevail. Here, both the respective national legislations and the laws of the Federal Republic of Germany are considered. The general asked food hygiene standard is of course guaranteed by our products. General laws of this is the Food and Commodities Act (LMBG) together with its special regulations: •Food labeling regulation•Packaging regulation•Hygiene Regulation LMHV (Food Hygiene Regulation)Freshly roasted at Tchibo Coffee Service is important! The products that we deliver to our customers, were usually roasted before a maximum of two months. Responsible produced coffee

quality - for a sustainable future。

Legal Forces

The new "International Coffee Convention," officially take effecton October 1, 1994. A new organization, the Joint Forum of Industry and Trade coffee has been established, so that coffee-producing countries and consuming countries to participate in the joint organization of industrial coffee issues of common concern, Davidoff's coffee, as a Germany coffee company, Tchibo.

Competitor Analysis

KreisKaffee, born in Germany in 1963, is the world's first vacuum packs made into instant coffee was developed in Europe and the Soviet Union and other countries was

well received. 1963, the world's first vacuum packs of coffee into instant coffee method is, in the local German popular for granted, but is also popular in European countries like to use the mark, even after the collapse of the Berlin Wall, Russia, Eastern European countries are very popular. KreisKaffee instant coffee is characterized by has micro fresh sweet, sour and mellow flavor. GrandosCoffee, Germany's leading coffee brands. A series of cappuccino, shiang mellow. Common market, the carry bag packaging.Dallmayr Munich, Germany between Dale Meyer has coffee shops, coffee Zengyin their favorite royal family is known for Bayer. In 1930, Dallmayr started to sell coffee, and the main store in Munich purchased electric coffee roasting equipment. The unground coffee beans are stored in hand painted porcelain vessels from Nymphenburg. The quantities are still measured on historic balances. The main brand name Dallmayr Prodomo was created about 1960 and, according to advertising, is refined by a special procedure which removes the many irritants and bitter ingredients. The brand is well known in Germany and is advertised on TV. Up to 200 tons of coffee are roasted every day by Dallmayr in its coffee roasting buildings in Munich-Giesing and in Berlin and sold nationwide. Most of the coffee comes from Ethiopia. They also sell different types of Espresso and decaffeinated coffee, and some rare types of coffee from all over the world. The revenue in 2004 was 285 million euro. Dallmayr ranks fifth on the German market after Kraft (Brand: Jacobs Krönung), Tchibo, Melitta and Aldi.

Customer/ client Analysis

In recent years we have successfully expanded our customer base and operate with four subsidiaries in Austria, Czech Republic, Poland and United Kingdom. Furthermore there is a close distributor network outside Europe. With different brand concepts, we meet every requirement of our clients: whether the classic Tchibo coffee, the exclusive Davidoff Café, the authentic Italian Piacetto Espresso or the Fairtrade coffee Vista - the sophisticated portfolio covers your every need. Besides the core business of coffee, we offer our customers a wide assortment of tea, hot chocolate and trendy products. The company has many years of experience in catering and can incorporate this expertise directly into its customer concepts. Tchibo is one of the largest coffee supplier in the world. In order to do justice to this role in every aspect, we assume responsibility for the future of the coffee world. This means: We do not only pay attention to delicious taste and best quality, but also on environmental protection and reasonable living conditions of coffee farmers and their families.

SWOT Analysis

Strengths

•High quality materials requirements.

•Experts decided to have 55 years of experience in the quality of coffee tasting experts, familiar with every aspect of coffee.

•Davidoff coffee, use the world's most advanced air-baking.

•Davidoff global coffee business strategies.

Weaknesses

•Competition with the pressure

•Open up new markets overseas, there is a certain risk.

Opportunities

•Overseas markets.

•The demand of coffee go up.

•Recognized by consumers.

Threats

•Increasing competition.

•The problem of localization of overseas markets.

•Who knows if the market for coffee will grow and stay in favour with customers, or whether another type of beverage or leisure activity will replace coffee in the future?

Objectives

Specific: Introduction of a new week, the season series, each series is usually only placed a small shelf was replaced two weeks off. These series are characterized by well-known in the price with the low end of cheap goods stores such as Aldi and Lidl match, but the design is similar to the high section line of goods, to create a TCM (TCM is one of Germany's largest chain Tchibo commodity Group as its registered trademark name, which hit most of the goods are marked by the TCM in China) is equivalent to "a cheap and poor quality" of the myth. Tchibo more than 1,200 stores throughout Europe, where you can buy binoculars, cell phones, and perhaps drill. Every Wednesday, Tchibo will host a different theme activities, in the event of sale of 25-30 kinds of non-food goods, the goods are sold, and these themes, such as "consciousness of the world" theme, sell bath oils, yoga mats and candles; "Italian"

theme, selling cheese grinders and dishwashers.

Measurable: In 1999, Davidoff coffee success of Asian PGA Tour title. As the founder Zino Davidoff Davidoff's famous phrase - "the taste is the taste quality of life." Coffee in Germany in 2003 it accounted for one-third market share. Davidoff 2002, the first public appearance, at present in Eastern Europe, the Middle East and Asia (China, Korea, China Taiwan, Hong Kong, China, Singapore, Malaysia the Philippines) can see Davidoff coffee presence.

Actionable: TCM is the secret of success in product design for "stealing, copying and imitation."

Reasonable: TCM Tchibo brand products are exclusively designed; Tchibo's of course to participate in various exhibitions, study new trends in fashion and fashion, but never bother to copy to steal the design, designers often do not know a Tchibo design has been a small company registered a patent; If this design very similar to the situation, as long as there is legal basis, Tchibo will recognize each other's intellectual property rights.

Time tabled: Every Wednesday, Tchibo will host a different theme activities, in the event of sale of 25-30 kinds of non-food goods, the goods are sold, and these themes, such as "consciousness of the world" theme, sell bath oils, yoga mats and candles; "Italian" theme, selling cheese grinders and dishwashers.The Davidoff Café world embraces four Super Premium variants and once a year special Limited Edition.

Target market

Pursuit of high quality of life of the young generation of 20-35 year-old.

Marketing mix strategy

ProductFirst of all, is to achieve product and service differentiation, the formation of customer loyalty, so that customers feel a greater value to pay a higher premium Starbucks, Starbucks Coffee provided in addition to tangible products, there are invisible spiritual experience, and Starbucks this experience almost fanatical pursuit to build the Starbucks brand positioning. As the consumption of Starbucks customers feel unique emotional and psychological touch is difficult to imitate, this level of perceived psychological benefits it also brings greater customer loyalty, hard to imitate because of its copy, also formed a Starbucks the core competitiveness.Secondly, the Starbucks brand extension can be considered the product strategy, making Starbucks coffee into supermarkets to sell, seize to-drink coffee market, but this brand extension strategy must be cautious, I think, can be considered an extension of the main sub-brand strategy, the main vice brand extension refers to the enterprise

with a variety of products, all products in a unified brand, according to the different characteristics of each product labeled their names. Avoid a single brand extension may dilute the brand image problem, and to avoid a single brand extension may cause confusion in product positioning. This can make the resources and the application of the Starbucks brand to seize to-drink coffee market share, but also can reduce the negative effects of high-end brand Starbucks.

Price:Starbucks price positioning is "most people can afford the luxury" consumer orientation is the "white-collar class." Most of these customers are intellectuals, love boutique, food and art, but also higher income, high consumer loyalty levels.In the food service industry, to build their own high cost difference, so I want to attract customers through the products and prices is very difficult, and customers often identify a service, in a very long time will not change, will long-term and stable use of this service, which is in the white-collar workers was particularly evident, they always have a psychological tendency to seek stability. Thus, Starbucks' hearts and minds strategy "to move customers to develop customer loyalty.

Promotion:Davidoff positioned themselves outside the home and office independent of the third space, Starbucks goal is to mainstream of China's middle class and upper class in a fresh fashion style social networking sites, people buy coffee at Starbucks, while , also bought a way of life.

Distribution:Breakdown by geographical factors, the consumer market. Economically developed coastal cities, the economy is relatively well-developed secondary inland cities. In Eastern Europe, the Middle East and Asia (China, Korea, China Taiwan, Hong Kong, China, Singapore, Malaysia the Philippines). In South Korea, sales and catering industry, the market share of Davidoff coffee steadily; in China Taiwan, has been well-known coffee Davidoff is obvious; in China, despite Davidoff coffee to the time is not long, but in Chinese food service industry experts --- Man Delin fine efforts of food companies encouraging prospects, Davidoff coffee will also be accepted by more and more people.

People:Consumer market by population segment. Not received a university education are less educated people;Received university education in groups with higher level of education; consumer market segments by psychological factors. Pursuit of the social upper class taste: the pursuit of taste, the heart spirit of sublimation and symbolism of the elite to enjoy the brand, they are compatible with aggressive body, warmth, tradition, and create and contribute to the community's values, personality initiative, like their own decisions; the pursuit of fashion social middle class: the pursuit of fashion, highlighting the self-style, love of communication, respect for instant

gratification, create value, but can also be easily distinctive impact on herd mentality;consumer market segments by behavioral factors. Coffee lovers: the quality of coffee, have high requirements,often drink coffee, and happy to learn about coffee knowledge and culture; coffee random consumers: the coffee is not exclusive, but not love, occasionally drink coffee, but coffee is not essential to their lives drinks, coffee knowledge and understanding of their often like the atmosphere over coffee cafe itself, its consumption of coffee is often more out of a leisure or social needs; coffee excluded: this part of the population do not drink coffee from a basic, but refused to take the initiative to coffee, to coffee shops also little choice of coffee, tea or other drinks prefer instead of coffee.

Process:

Dotted with coffee shops selling everything from fashion to small appliances, including a wide variety of household consumer products, marketing strategy is to launch a new week, the season series, each series is usually placed on the shelf in the small twelve weeks to be replaced down. These series are characterized by well-known in the price with the low end of cheap goods stores such as Aldi and Lidl match, but the design is similar to the high section line of goods, to create a TCM (TCM is one of Germany's largest chain Tchibo commodity Group as its registered trademark name, which hit most of the goods are marked by the TCM in China) is equivalent to "a cheap and poor quality" of the myth.

Physical evidence:Davidoff experience is the experience of romantic, middle-class mainstream consumer groups affordable luxury, a spiritual Island, the combination of leisure social activities. Davidoff as the spokesman for high-quality coffee, coffee culture and the dissemination of expert knowledge, through education, what is the target customer base of high quality coffee to show Davidoff's coffee expertise. Through the establishment of the team is full of passion for the work of the partners, continue to spread Davidoff experience, media company, brand and positive image. Davidoff believed and advocated a good start to promote a virtuous circle. This is reflected in him and the customers, employees, suppliers, government departments, social and other relationships.

BudgetTo develop the Chinese market, second-tier city market, for example, Coffee and estimated gross profit of 65% to 86% of the profits, after deducting the salary of personnel and materials, the net profit after the rent has 25% to 30% of the profits. (Control personnel, the second largest cost of the rent is very important), monthly rent spreadsheet ÷ 20% turnover, such as the monthly rent of 5,000 yuan, monthly turnover is at least 25,000 yuan a month. Average per person spending a few turntable × × × number of seats the number of days per month, as 25 per capita consumption of 25 yuan / person × 24 / seat × 0.7 / passenger capacity rate × 2 / revolutions per 1 × 30

= 25200. To store operating 30 days per month 24 Ma seat (about 6 Ma desktop) per capita consumption of $ 25 per day × number of 2 Ma turntable off coefficient of 25,200 yuan turnover is within reasonable limits, and must reach (2) to open AM10; 00 ~ PM12; 00 3 turntable number of afternoon tea, evening E round, evening tea set as a condition. 4 coefficient is generally fully booked more than a table with four chairs or 2 chairs, while a consumers account for two-bit or 2 bit tables for 4 people, depending on when the coffee shop occupies the chair 70% rate It can be said has been fully booked. 5 Menu prices above the coefficient of the reference 6 around the market, community environment, consumer group structure basis for the set menu price.

ImplementationThrough various channels, such as networking, media, sponsors public service activities, and well-known enterprises such as the final choice is propaganda. Coffee shop in three to six months, sales in the trial state, or personnel are not allowed due to market positioning and product instability is not a fixed factor. There will be an adjustment over the stage. Changes step by step according to the actual positioning, visibility from the shop, administrative details, personnel and other details need fixed an adjustment process, and ultimately achieving improved from a cost: such as personnel costs, water, electricity, rent, daily consumables will have a uniform cost accounting and the value of the average monthly spending.

Evaluationsix months to a year, with the cafe's popularity gradually around the open market gradually expanded customer base increased, after the soft opening by the continuous adjustment and perfect details of the work, the store has reached maturity, cafes right track.During the soft opening promotion: mainly for schools and large office buildings around the release of some leaflets, the publicity surrounding the source in place. Opening Offer promotional products. To be guests in the consumer, through questionnaires, to understand our strengths and weaknesses, well maintained, disadvantage correct, timely adjustment of service and quality produced. According to early custom cafe VIP business habits, such as scenes, discount for each purchase prepaid cards. After the formal business plan will focus on positioning the main propaganda, mainly targeted at various groups, by customers about the customer, through the media, including radio, magazines, websites and other aspects of free publicity well, mainly to customers around the the main. We are a lot of publicity. ² high in some high-end sales magazine advertisements. ² consumer sites with the same grade (not conflict) with each other to do publicity. ² publicity through the website, mainly on account of car owners, coffee lovers group. Manage the job shop application before the hardware part of the progress of the project management software is part of the store shop business plan addressing the main store location target store of the benefits of the negotiations.

Conclusion

With the economic level of improvement to enhance the lifestyle of young people, the coffee market demand to expand, more and more companies go global coffee market strategy. Davidoff as the world's leading coffee chain, and its unique business model and brand core value of its tremendous success. However, the market is changing in the competition, the enterprise's survival rests in the hands of customers. As Davidoff's reputation and their way of life on behalf of the petty bourgeoisie, and its global market consumer recognition, along with economic development, Davidoff coffee industry in the world's largest market share a cup of soup, is expected to be there is a good prospect.

Marketing Plan Producer: Sophie Dec, 11,2011

Class C

G0905103