Vittoria Coffee Marketing Plan: Expansion Of Business To China

Question

Task: Provide a report that details Vittoria coffee marketing plan and outcomes would be achieved after the implication of Vitoria coffee marketing plan in the Chinese market.

Answer

Introduction and Situation Analysis
It was by the two Italian immigrant brothers that the section of Vittoria Coffee was established under the company of Cantarella Bro. this Vittoria coffee marketing plan reviews strategies used by Vittoria coffee as established itself as the most popular coffee brand in the market of Australia. The element which makes the products of Vittoria coffee unique are the factor that they have exotic flavor from Italia thou are modified as per the palate of the Australian population. The customization of the product according to the taste of the Australian population has helped the Vittoria Coffee to gain wide acceptance in the local market of Australia. Before the entry of the company into the soil of Australia, the inhabitants preferred to tea and instant coffee rather than consuming real coffee beverages. It was after the entry of Vittoria coffee into the Australian market that the beverage routine of the population has drastically changed. The brand of Vittoria espresso coffee is that much established in the Australian economy that the product name has become the synonym of coffee beverages.

If taken a peek into the history of Australia, a lot of Europeans have migrated to the soil of Australia after the end of World War II. Since the majority of the demographics of the Australian island has become from the European ethnicity, there emerged the necessity to transform the lifestyle to comply with the European norms. It was in this scenario that the company of Vittoria coffee has entered into the local with the same set of goals. The first set of targeted customers for the company were the Immigrants to the Australian soil having the Italian ethnicity. In the current scenario the whole Australian population has accepted the Vittoria coffee wholeheartedly and its products are being served in every household, luxury restaurants, and top cafes. As per the data calculated by the Vittoria coffee company, around one million cups of Vittoria coffee is consumed daily in the Australian soil itself. The market variables of the company revealed that a total of 40% of the local coffee market share is being occupied by it. This report on the Vittoria coffee marketing plan would try to reveal how a simple and single idea has evolved into the most successful and foremost coffee brand in the country of Australia.

The major factor which was behind the success of the company was its Vittoria coffee marketing plan. In various phases the company has adopted different variants of Vittoria coffee marketing plan so that the unprecedented changes in the market could be tackled effortlessly. As mentioned in the earlier section of this report on the Vittoria coffee marketing plan, in the initial stage of the company (the 1980s), it has targeted just the population having the cultural background from Italy. The company has also focussed on popularizing the Italian beverage style famous among the citizen of Australia. The coffee beverages were not much in prevalence among the Australian citizens and it was after the entry of Vittoria Coffee company into the country that people have started to consume the coffee beverages on a wide basis. Now the products of the company dominate all the café sectors and are widely being accepted as the nemesis of quality coffee consumption. The current customer base of the company in Australia is fond of quality food products and well aware of their health. For the company to have such a customer basis, the parameter of the quality bears the most significance. The company of Vittoria coffee is in the lead by Les Schirato, who is referred to be the Coffee king of Australia. In the market, around four retail products are in the foremost position. It should be noted that the Vittoria company has not only focussed on marketing its product but also on introducing a new form of lifestyle in Australia. Various instances of it could be taken from the Vittoria coffee marketing plan which constitutes the Heritage Campaign conducted by them in the year of 2003. In the field of marketing principles, the company has made a large contribution by a lot of innovations that were being awarded by many agencies. The cheap and attractive coffee offers along with the spreading perception to enjoy and brew coffee at home is considered to be some innovative moves that have given a cutting edge to the company against its competitors. The company has also increased its brand value and goodwill by actively participating in philanthropic activities.

It should also be noted that the company did not only benefit from the Vittoria coffee marketing plan but also the choice of his market. The social, political, and economic environment of Australia was very favorable for the business of the Vittoria coffee industry. It was after the year of 1940 that the parameters and standards for the quality of the coffee sold in Australia were being reset by the Australian Coffee Traders Association (ACTC). The company of Cantarella Bro has major influence over the Australian Coffee Traders Association. If taken into account of the buying trends of Australia, the sale of Coffee products is accelerating on a large magnitude every year. A per consumes an average of 2.4 kg of coffee per year in Australia as per the report of BIS Shrapnel. If taken the instance of the Australian coffee market in the previous decade, the consumption of coffee has increased by up to 65 %. As per the research conducted by the body of the Australian Coffee Traders Association, coffee beverages, especially coffee products with Italian flavor are well-liked by the popular mass and is dominating the sales in cafes and restaurants. These studies reveal that the Vittoria coffee company has placed itself in a very financially and strategically safe position.

Though the position of the company is very sound, the threat of new entrants and substitutes contributing to the high level of competition would not be avoided by its management. The Vittoria company still needs to establish its position on the global platform. The global market is being occupied with high potential companies and it has to struggle to spread awareness regarding its product to the customers on a global basis. Though the company could utilize its innovative Vittoria coffee marketing plan to gain an advantage over its customers. The company should understand that though it dominates the coffee sales in the countries of Australia and New Zealand, it is nowhere near the turnover of other companies if taken the global context. The global market is being dominated by huge companies like Royal Copenhagen, Starbucks, Nescafe, Maxwell, etc. The market share held by these companies is so much that a company with limited resources could never dream of entering into the global coffee market. It is a large challenge in front of the management of the company to gain a share of the coffee market on the global market.

Target Market and Segmentation
Let us take an instance that the Vittoria company has focused on the country of China to expand its coffee business. The market of China is very potential for the sales of coffee products and still needs to be explored by the major industrial brands. In the global scenario, the economy of China is observed to be a large consuming country since the population of the nation holds high purchasing capacity. The demography of china can provide a Vittoria coffee company with 200 million viable customers. This is because the production of coffee in the soil China is not sufficient to suffice the existing demand, which is being controlled by coffee import. The customers of China highly depend on coffee imports to meet their daily consumption.

If compared between the coffee markets of both the nations of China and Australia, they possess significant similarities. If looked back into the history of Australian Island, it happened to be one of the colonies of Britain and has developed the palate for instant coffee and tea through all over the period. If taken the history of beverage consumption in China, the consumption of tea could be dated back to thousands of years. Both countries retain a large magnitude of the population that prefers highly tea-related beverages. It was after the implementation of globalization ideology in the Chinese country and high pace of economic development that the coffee was introduced to the Chinese publication. The population has widely accepted it though the instant coffee is much more in prevalence because of its availability and ease of preparing. The same approach adopted by the company in the Australian economy could be used in the Chinese market with a minor augmentation. The probability of being a successful brand in China is very high for the Vittoria coffee company.

The approach of the company in the economy of Australia was to target the top quality restaurants and cafes and hence the parameter of quality was taken very seriously by the company. When the economy of China has started developing at a very fast pace, the standard of living for the population started raising. The new developments have made the population much more health-conscious and mindful of the products consumed by them. The company could focus its target on the population groups of a younger and middle-aged generation. The reason for this is that the targeted demographic division would be employed and could dispose of a share of their income to spend on the Vittoria coffee products. The young generation is the one who would accept any positive changes in the lifestyle rapidly and make it a trend in the market. It is after its validation that the older generation would move on with the consumption of new products introduced in the market. The younger generation would not think much about the cost of the product if it provides much quality to its marked price. From the demographic details of the coffee market in China it could be observed that 25 % of the coffee consumers belong to the age group between 40 to 50. The magnitude of coffee consumers ranging in between the age group of 20 to 30 would amount to 20 %. If checked the demography of the company much more thoroughly, it could be observed that the number of male consumers for coffee is much more than the female consumers.

The increase of coffee consumption in Chinese marked should be considered a normal market phenomenon since it is the rise of a new coffee culture among the popular mass. The number of people visiting the cafes for coffee consumption as a part of the public gathering is increasing day by day. The frequent visit to the cafes is now considered to be the sign of high living standards and this attitude of the demographics could be well exploited by the management of Vittoria coffee. The company should imply the Vittoria coffee marketing plan in this context to place itself as a dependable supplier of coffee production. There is a huge network of hotels and cafes in China and the company could collaborate with them to make the customers aware of their products. The company should only target for the restaurants with high rating since the products of Vittoria coffee should build the image of premium brand among the customers.

In the current scenario of the global market it could be observed that just providing the coffee products to the customers would not lead any development of business. The companies should provide the customers with some innovative and unexplored flavors that would bring the attention of maximum customers. The factor of convenience would come only secondary to the above-mentioned factor. The Products of the Vittoria company are well known for its premium quality, the factor of freshness, cleanliness, etc. These are the same factors that the customers in the Chinese country are seeking for in the coffee beverage products. The scope of the Vittoria coffee marketing plan is much higher in the section of restaurants, cafes, premium hotels, and even for the people who prefer to brew and enjoy coffee at home.