Presentation for "Planet Coffee"

UNIVERSITÀ DEGLI STUDI UDINE Facoltà di Lingue e LeAerature Straniere corso di Laurea in "Comunicazione Integrata per le Imprese e le Organizzazioni"

PLANET COFFEE goes to SOUTH AFRICA

Specialized English CommunicaHon Prof. Nickolas D. G. Komninos Student: Moira PezzeAa

A mix of colors and cultures: COFFEE "A good coffee is like friendship: rich, warm and strong”

DIFFERENT Cultures & Believes -­‐ ways of making and drinking coffee -­‐ SAME Passion for Coffee

How could the "Italian" coffee blend enter the South African Market?

Index

1. PLANET COFFEE

mission of a globally oriented company

2. CONSUMER'S POINT OF VIEW: SOUTH AFRICA most famous coffee brands cost and style compe<tors trends and expecta<ons

3. ANALYSIS OF A CULTURAL RAINBOW history and culture rela<onship and communica<on

4. ITALIAN COFFEE IN SOUTH AFRICA expor<ng Planet Coffee Logo ideas

PLANET COFFEE: the passion for coffee 1.

An italian Coffee brand: the mission of a globally oriented Company Out of our great love for coffee, we want to create new values and offer high quality blends, products and services; our goal is to spread the art of making espresso so that anyone can become a real connoisseur.

Member of the Trieste Coffee Cluster Associa5on MISSION • promote coffee all over the world with a variety of 25 coffee blends • saHsfy all consumers’ tastes by creaHng the best coffee blends and selecHng the most refined single origin coffees.

STRENGHTS • quality. Ever-­‐fresh coffees, slowly roasted using the tradiHonal method to create the perfect "Made in Italy" espresso, symbol of the Italian lifestyle.

• in-­‐house training center for “espresso experts” • long-­‐standing trademark (1966) : Brasiliana Caffè brand maintain image conHnuity and preserve the roots of the family tradiHon. • message of great iden5ty and values: family, tradiHon, espresso and Italian style.

BLANDS Specialty Coffees, Gourmet, CaffeAerie, Cappuccino Italiano, Gold Blend, Italian Bar, Barista, Silver Blend and Decaffeinated Espresso Blends.

Moreover a wide variety of coffees to be tasted out of a pods to saHsfy everybody’s tastes.

PROMOTING Bar accessories and promoHonal materials to enhance the pleasure of the savoring Brasiliana blends, offering a youthful image with classical elegance.

A consumer’s point of view: SOUTH AFRICA 2.

The most famous coffee Brands in South Africa Local South African Brands try mimic overseas counterparts

SeaGle Coffee a brand that isn’t from SeaAle at all (offshored in 1997) 25 shops across Cape Town, where, as in the US, visitors can drop in and experience free Wi-­‐Fi and coffees that are fairly similar to those served in Starbucks.

• point of differen5a5on for this brand is in the quality of the coffee beans (bought from all over the world), the way they are purchased, and the way in which they are roasted.

Vida e Caffé ( = life and coffee) the Portuguese-­‐themed renamed brand (offshored in 2008) 19 shops offering not only the usual shouHng and singing "baristas", but fashionable spirit: bright colors, loud music, and a trendy atmosphere infuse the shops.

• is doing some serious "proac5ve marke5ng” to differenHate its branding from its American and Italian-­‐influenced compeHtors.

Specialty South Africa: cost and style SEATTLE COFFE: • a typical cuppa costs about 8 rands (R) equal to 0.75€ • a tall laCe can run up to 15 rands equal to 1.50€ Relaxing atmosphere: customers surf the web on a notebook silng on the deep leather chairs and wooden seats.

VIDA E CAFFÉ: • same price points as SeaAle Coffee Plain atmosphere: aAracts a younger, more mobile crowded client The customer is silng on the street with sunglasses on, sending a text message via a mobile phone.

Shops are completely uncomfortable because of their hard plasHc benches and stools.

A heavy cost for a South African: people are used to paying half of this amount for lower quality take-­‐away coffee from fast food outlets.

Moreover it is “take-­‐away” service -­‐ you take your coffee to your table yourself.

South African customers insist on silng down and enjoying it.

Not an “on the go culture”, it’s a “take a break culture.”

Success and competition Local stores’ success aAracts many other companies: GLORIA JEAN’S COFFEES American franchise that found success in Australia The first outsider in South Africa set to offer heavy compeWWon to the locals 30 stores already within a year.

The company also offers a South African based “coffee university” to train local baristas.

A tea flavoured coffee:“red espresso” RevoluHon in the coffee industry. The world's first tea espresso: RED ESPRESSO made from a natural red herbal tea called “rooibos” Who Would have Thought a Tea Could Play By Coffee’s Rules? advantages: • rooibos is an excellent health drink, drunk locally for years for everything from allergies to rheumaHsm. • people are becoming health conscious: caffeine intake of coffee, hence the healthy alternaHve which sHll offers them the same style and sophisHcaHon. And so... red espresso.

Trends, competitive landscape and prospects for coffee market in South Africa ECONOMIC DOWNTURN • decreased disposable incomes amongst South African consumers. o choice in terms of quality versus quanHty but bought more moderately for middle class people o low-­‐income South Africans stopped purchasing coffee because whishing to cut costs and bought other plant-­‐based (chicory-­‐based) hot drinks brands.

• Trend towards more premium instant coffee: Nestlé South Africa with its Nescafé brand was the leading brand in 2010-­‐ focusing on establishing the brand in the market by innovaHng new product formats, as well as packaging updates-­‐ • possible move towards organic coffee ( red espresso above all) amongst these consumers, as the health and wellness trend takes hold.

There may also be a move towards liquid coffee concentrates in coffee pods, rather than the current granule formulaHon.

ANALYSIS OF A CULTURAL RAINBOW: South Africa 3.

The nation's racially, ethnically, and politically divided history and culture strong sense of ethnic separateness or disHncHveness well-­‐established pracHcal forms of cooperaWon and common idenWficaWon.

HISTORY 1625: society officially divided into colonizers and naHves, white and nonwhite, free and slave fragmented na<onal iden<ty: racial discriminaHon and inequity (SOPRTUTTO) the black African, the mixed race(or Coloured), the Indians and Pakistani (also called "Asian") 1994: first nonracial elec<ons, the government tries to create unified naHonal concerns on the basis of equality.

CITY major urban centers in the Country are Gauteng, Johannesburg, Durban, Cape Town and Port Elizabeth. These ciHes constantly receive immigrants from other sub-­‐Saharan African countries, and they are all acHve in small-­‐scale urban commercial ventures.

LANGUAGE South Africa has 11 official languages. The Afrikaans is sHll the most widely used in everyday conversaHon-­‐ English dominates in commerce, educaHon, law, government, formal communicaHon, and the media.

INTEGRATION • economic freedom and opportunity to enable ciHzens to create a more integrated built environment.

• educa5onal opportunity, which has expanded for black ciHzens, and begins a gradual shiu from a racial to a class-­‐based division of labor, and there is now a growing black middle class.

Relationship and Communication

RAINBOW OF CULTURES RelaHonship links and styles depend upon the individual's cultural heritage.

Let’s take into account Hofstede cultural dimensions

• POWER DISTANCE -­‐ South Africa scores in the middle: people accept a hierarchical order in which everybody has a place. Hierarchy in an organizaHon is seen as reflecHng inherent inequaliHes, leading to centralizaHon.

• INDIVIDUALISM reflects more South Africans than collecHvism do: preference for a divided social framework in which individuals are expected to take care of themselves and their immediate families only.

Ethnic groups are collecHvists because in between the "in group" people take care of the others in exchange for loyalty.

...Relationship and Communication • MASCULINITY / FEMININITY nowadays is becoming increasingly balanced even in South Africa: Emphasis is on equity, compeHHon and performance and conflicts are resolved by fighHng them out.

• UNCERTAINTY AVOIDANCE South Africa is recorded lower than Italy: low uncertainty avoidance approach of south Africans, instead, where the planning process can be flexible to changing environment, rules are not needed and Hme as well as precision are not elements in individual moHvaHon.

HIGH

LOW

...Relationship and Communication Consider now Salacuse points of his research “How culture affects nego5a5on style”:

•

• •

•

•

NEGOTIATION GOAL is, for South Africans both contract and relaHonship: Do not need to establish long-­‐standing personal relaHonships before conducHng business.

Networking, mutual trust and relaHonship building are crucial for long-­‐term business success NEGOTIATION ATTITUDE is a win/win situaHon: they strive for consensus.

COMMUNICATION STYLE: both direct-­‐ preferring face to face meeHngs and formal in business relaHonships-­‐ and indirect and impersonal communicaHon, by using mediums such as email, leAer, or telephone. Avoid confrontaHons.

SENSITIVITY TO TIME: low Do not rush deals. South Africans are very casual in their business dealings and deadlines are ouen viewed as changeable commitments.

TEAM ORGANIZATION and DECISION-­‐MAKING PROCESS concentrated at the top of the company: decisions are ouen made auer consultaHon with subordinates, so the process can be slow and protracted.

A boAom-­‐up approach instead of a top-­‐down network organizaHon is encouraged-­‐ but with mixed results.

Italian Coffee in South Africa

4.

Exporting Planet Coffee’s brand to South Africa EXPOSURE TROUGH PROXIMITY: presence means commitment to Africa

Key Factors to wide Planet Coffee’s global orientaHon: o o o o

the "Made in Italy" factor coffee as a healthy drink technology and investment in quality the passion for serving coffee

HETEROGENEITY of South Africa reflected in MarkeHng /AdverHsing campaign and PromoHonl strategy

What should the Company do: o o o o

arrange training courses for sharing tradi5on and quality of a made in Italy coffee sell Planet Coffee’s top quality coffee pod, expected by the market as next habit of low-­‐income South Africans set up "tasWng stands" in towns where people tastes the different blends of coffee and the Company sells Planet Coffee’s gracious coffee cups and other merchandise export the decaffeinato blend, allowing south Africans to say goodbye to caffeine, but without foregoing the pleasure of a true Italian espresso: that could be an alternaHve to the "red espresso”

Planet Coffee's made in Italy brand most likely WON’T BE CONSUMED ON THE GO: the bartender will be serving coffee to the clients, so that they will not need to go get it on their own Italian atmosphere: both formal and young

My ideas for a Planet Coffe’s Logo in South Africa

Planet Coffee serves the passion for the “Made in Italy” with a unique recipe: HEALTHY COFFEE, WHICH BLENDS TOGETHER COLORS AND CULTURES.

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