EXECUTIVE SUMMARY
Our project is basically about the American coffee market including natural sources, culture, economics and effects on our product which is Turkish coffee. We are trying to evaluate exporting strategies based upon these factors.
In order to sell our product, we have to make complicated research about American coffee market. Such as; possible buyers in
Main idea about this paper is finding a product which has an international sale potential, and try to establish specific marketing mix strategies which is related to host country’s sources.
In 1999 there were 108,000,000 coffee consumers in the United States spending an approximated 9.2 billion dollars in the retail sector and 8.7 billion dollars in the foodservice sector every year (SCAA 1999 Market Report).In this big market, there are many types of sellers and buyers and important thing for us analyzing the complicated structure of this market and using these results in order to match our marketing strategies.
Turkish Coffee
From the days of the
Derived from the Arabica bean, Turkish coffee is a very fine, powder-like grind. An aromatic spice called cardamom is sometimes added to the coffee while it is being ground. One can also boil whole seeds with the coffee and let them float to the top when served. Turkish coffee has six levels of sweetness ranging from very sweet to black. Since sugar is not added to the coffee after it is served, spoons are not needed. As the coffee begins to heat, it begins to foam.
Turkish coffee is served hot from a special coffee pot called "cezve". Tradition states that after the guest has consumed the coffee and the cup is turned upside down on the saucer and allowed to cool, the hostess then performs a fortune reading from the coffee grounds remaining in the cup. Rich in tradition and flavor, Turkish coffee remains a favorite today. As the Turks say "To drink one cup of coffee together guarantees forty years of friendship".
According to news, Starbucks Coffee is now to promote Turkish coffee all around the world. The company plans to offer its customers Turkish coffee at about 9,000 sales points, from North America to the
American Coffee Culture
Americans seem intent on developing a new kind of coffee culture that is decidedly American. Their coffeehouses range from elegant to bohemian to suburban to slacker. American coffee culture exists as its own entity. It is not a reflection of
The basis of West Coast coffee culture, although fueled by Peet's, most likely started in the heady days of the Beats, somewhere in North Beach in San Francisco, perhaps at a legendary spot like Coffee Trieste. The pace and natural beauty of the West Coast compels people to slow down and linger. Perhaps this is why American coffee culture still largely looks to the West for inspiration.
Rest of the country; roaster, retailers and coffeehouses are intricately tied to developing the American coffee scene in distinct ways in their own towns, cities or regions. Quality and care are not limited to one coast. It is the so-called micro-roasters who really have an opportunity to push their coffee culture to the next level of enjoyment by providing super-fresh, stellar single-origin coffees and blazing espresso. These carefully roasted beans land in coffeehouses across the country, some in strip malls, some in inner cities, and some in bustling beach and mountain towns.
As far as regional roast and flavor preferences, they are as varied as the topography of
The East Coast harbors many talented roasters scattered in and around
The South represents a hodgepodge of tastes. Here, you can still find plenty of flavored concoctions with names like "pecan log roll" being passed off as specialty coffee. But a number of roasters in the Carolinas,
In the East, there seems to be more of a European influence, perhaps from an earlier era, and there are spots that are very design-forward. Spaces are smaller and dearer. Time definitely passes more quickly here than in other parts of the country.
Organic, sustainable and fair-trade coffees are quickly finding a place in American coffee culture, particularly on the coasts. Environmental awareness is less entrenched in the
In general, the level of coffee knowledge seems to be rising throughout the country, with customers inquiring about particular origins and preparations and asking for ristrettos and French-pressed coffees.
International Coffee Market
The Scandinavians are the biggest coffee drinkers, while
The second largest coffee producer is
The sector is growing in
About
Location: North America, bordering both the
Ocean, between
Natural Resources: Coal, copper, lead, molybdenum, phosphates, uranium, bauxite, gold,
iron, mercury, nickel, potash, silver, tungsten, zinc, petroleum, natural gas, timber.
Population: 298,444,215 (July 2006 est.)
Age Structure: -14 years: 20.4% (male 31,095,847/female 29,715,872)
15-64 years: 67.2% (male 100,022,845/female 100,413,484)
65 years and over: 12.5% (male 15,542,288/female 21,653,879) (2006)
Ethnic Groups: White 81.7%, black 12.9%, Asian 4.2%, Amerindian and
1%, native Hawaiian and other Pacific islander 0.2% (2003 est.).
Religion: Protestant 52%, Roman Catholic 24%, Mormon 2%, Jewish 1%, Muslim 1%,
other 10%, none 10% (2002 est.).
Language: English 82.1%, Spanish 10.7%, other Indo-European 3.8%, Asian and Pacific
island 2.7%.
Economy Overview: The
in the world, with a per capita
individuals and business firms make most of the decisions, and the federal and state
governments buy needed goods and services predominantly in the private marketplace.
US business firms enjoy greater flexibility than their counterparts in
Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new
products. At the same time, they face higher barriers to enter their rivals' home markets
than foreign firms face entering US markets. US firms are at or near the forefront in
technological advances, especially in computers and in medical, aerospace, and military
equipment; their advantage has narrowed since the end of World War. The war in March-
April 2003 between a US-led coalition and
required major shifts in national resources to the military. The rise in
2005 was undergirded by substantial gains in labor productivity. Hurricane Katrina
caused extensive damage in the
on overall
inflation and unemployment, yet the economy continued to grow through mid-2006.
Imported oil accounts for about two-thirds of
include inadequate investment in economic infrastructure, rapidly rising medical and
pension costs of an aging population, sizable trade and budget deficits, and stagnation of
family income in the lower economic groups.
Per capital income: $41,600 (2005 est.)
Unemployment Rate: 5.1% (2005 est.)
Inflation Rate: 3.2% (2005 est.)
Industries: Leading industrial power in the world, highly diversified and technologically
advanced; petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals,
electronics, food processing, consumer goods, lumber, mining.
Export Commodities: agricultural products (soybeans, fruit, corn) 9.2%, industrial
supplies (organic chemicals) 26.8%, capital goods (transistors, aircraft, motor vehicle
parts, computers, telecommunications equipment) 49.0%, consumer goods (automobiles,
medicines) 15.0% (2003).
Export partners:
(2005).
Import commodities: Agricultural products 4.9%, industrial supplies 32.9% (crude oil
8.2%), capital goods 30.4% (computers, telecommunications equipment, motor vehicle
parts, office machines, electric power machinery), consumer goods 31.8% (automobiles,
clothing, medicines, furniture, toys) (2003).
Import partners:
(2005).
Political risk analysis:
When we look at the stability of the
unexpected and drastic changes. We believe that 2007 president election results cannot
affect the business world as much as policy in
countries chart,
Coffee Culture and Consumer Behavior in
In 1999 there were 108,000,000 coffee consumers in the
approximated 9.2 billion dollars in the retail sector and 8.7 billion dollars in the
foodservice sector every year (SCAA 1999 Market Report). It can be inferred, therefore,
that coffee drinkers spend on average $164.71 per year on coffee. The National Coffee
Association found in 2000 that 54% of the adult population of the
coffee daily (NCA Coffee Drinking Trends Survey, 2000). They also reported that
18.12% of the coffee drinkers in the
(NCA). In addition to the 54% who drink coffee everyday, 25% of Americans drink
coffee occasionally (NCA). The average consumption per capita in the
around 4.4 Kg. Among coffee drinkers (i.e. not per capita) the average consumption in
the
approximately 1.9 cups per day, whereas women drink an average of 1.4 cups of coffee a
day (NCA).
US Imports: Total
by 1.4% from the first quarter's 5.844. Compared with the year-ago quarter, US imports
were off by 2.6% from 6.280 million bags.
over the first quarter, moving to $3.27 per pound from $3.24. Compared with the second
quarter of 2005, coffee prices are down by 1.8% from $3.33. However, average monthly
retail prices remain 30.0% below a seven-year high of $4.67.
Overview Espresso
With the rise of coffee chains such as Starbucks, Seattle's Best Coffee, and others,
espresso-based drinks rose in popularity in the 1990s in the
of Starbucks has caused a wide divergence from the Italian style of coffee, by adding
syrups, whipped cream, flavour extracts, soy milk and different spices to their drinks.
Long and complicated drink orders became the punchline of many jokes aimed at making
fun of how finicky and obsessive coffee drinkers can be.
Home espresso machines have also increased in popularity with the general rise of
interest in espresso, and with the Internet and its use as a tool to spread information about
this beverage around the world. Today, a wide range of high-quality home espresso
equipment can be found in specialty kitchen and appliance stores, online vendors, and
department stores. The Internet has facilitated the spread of information about a wide
range of espresso-based drinks and can dispel (or promote) many myths on how to
properly brew espresso.
People who is looking for traditional coffee taste and espresso lovers are our segment.
We don’t have any competitor companies which sell Turkish Coffee in
Full definition of our segment is really clear, people who are looking traditional taste at
coffee. We don’t want to narrow our segment, because we have already consumer
portfolios in
use same concept in global or foreign markets. Our segmentation and our targetting
strategies will keep going paralel. Our positioning stratey can be different in different
regions of the
Adaptation of Turkish Coffee in
Turkish coffee is a very flavorful, and often strong, coffee. It is prepared in an ibrik, a
small pot that holds either one or two servings.
What do I need?
An ibrik and a heat source, coffee, water, and sugar.
What type of coffee grind?
Turkish coffee uses the finest grind you can have. The coffee becomes more like a
powder than anything else.
Turkish coffee and espresso have very similar tastes; maybe Turkish coffee is little bit
stronger than espresso. Another important similarity is both coffee types has different
type of pots and coffee cups. Our market segments is already in
meet them with different coffee beans like Turkish coffee. Our potential market is going
to be who like espresso and people who are looking for traditional tastes.
Our strategy
Where can you buy Turkish coffee from?
1. Strategy
v Internet
v Supermarkets
Turkish company think that we can make some licence agreements with big coffee
companies in
so we can get some attention from Starbucks and DunkinDonats, we expect to sell our
coffee in these two companies stores.
First stage; product will show up on the internet, company will create a website which is
www.saray.com. This web will provide online selling and information about the Turkish
coffee. Company thinks distribution of the product can be issue so company will establish
one office and one warehouse in
provided by warehouse and office. The role of the office in
communication between company and
Shipping and time: Shipping fee will be free for
will be 1-2 days. Other regions, shipping fee will be added to price and shipping will be
different based on which regions.
Our company had an agreeement with
product shipping. When customer pruchase our product, our website will provide all
information about shipping.
2n stage; if online selling goes well, our company will negotiate in an agreement with
Stop&Shop market. Earlier negoatiations showed that if you sell your products in these
market stores, you should have some background about your products. Our aim is to get
in Stop&Shop stores.
3rd stage is to get attention of Starbucks and DunkinDonats.
Our strategy is based on direct exporting. We already defined our market opportunity and
we solved our distribution issue in
exporting product from
that we don’t have any international experience as a company so we don’t want to meet
any problems during exporting process. Then, Company will send our products to our
warehouse which is in
we go to second stage of our strategy, we will still keep going to export our products.
Third stage; in this stage our strategy can be changed and we can review our current
strategy and we can think about another strategies.
Product Strategy:
Size and shape:
Coffee package: 1 Ib packages, desing of package will be demostrated traditional turkish
motives. Our product packaging will also be dsigned based on environmental concerns
and existing standards.
Color and text:
Our packaing desing will also be created based on government regulations, and our
promotional strategies.
Our company will give attention about language issues in labeling and cultural
meaning and implications.
First line of the product packaging will include one pot and 2 traditional cups.
Global promotion strategy:
We will choose domestic agency for advertisement of our product. This agecy should
have some experience in coffee industry and online selling. During promotion campaign,
our company will attend to local fairs about coffee industry, and company will provide
direct marketing for
for other regions of
our company’s budget will expend so company will make more effective promotion
strategies, such as sponsorship or Tv ads, radio ads, and newspaper ads.
Conlcusion:
market. The advantages of coffee market in
existed, on the other hand there are big competitor in coffee market such as
DunkinDanots and Starbucks. Companies which want to enter in this market, they have
to come with gourmet coffee and traditional or different tastes of coffee. In addition, it is
still very difficult to compete these major coffee companies, and companies should not
expect to expand their market shares in short time. We think that companies have to make
good analysis of the market, customer expectations, reasonable market entry choice and
Our project is based on direct exporting strategy, our company do export Turkish coffee
from
our warehouse.
Our project design, product design and market entry strategy will keep to continue
together. We believe that our company will be successful in
good experience about coffee in our local market, international market will be first
experience for our company. We didn’t put huge expectations for market share in short
time, we created three steps and our investments will depend on developments of these
steps.
Work Cited
www.coffeereview.com/ www.coffeefarm.com
http://www.ico.org/ http://www.coffeeresearch.org/
www.coffeegeek.com http://www.dailyfutures.com/softs/
www.coffeeuniverse.com/ http://www.beveragedaily.com/
www.nationalgeographic.com/coffee/ www.dunkindonuts.com
www.coffeelibrary.com www.ineedcoffee.com
www.allaboutturkey.com/ www.turkeytravelplanner.com
http://en.wikipedia.org/wiki/Coffee www.turkishculture.org
http://www.the-infoshop.com/study/pf36064-coffee-us.html
