TCHIBO IDEAS

Tchibo Ideas: Leveraging the creativity of customers



Tchibo Ideas: Leveraging the creativity of customers

Introduction

The history of Tchibo coffee stores and cafes dates back from 1949, when two co-founders, Carl Tchilling-Hiryan and Max Herz founded the company which remained a family business since then. Their business idea of sending roasted coffee to customers by mail revolutionizes the coffee market. In 2007, it changed its name to Maxingvest AG. They specialized in coffee products and customized their business model for a point of differentiation. Tchibo is owned by one of the wealthiest families of Germany.

The German chain Tchibo coffee shops and cafes are identified for altering the weekly scale of further food. The products include clothing, household bits and pieces, electronics and electrical appliances. In Germany, Tchibo motto is “Every week a new world” (Kroeger, 2008).

Tchibo stretched out its effect scale and is now vending services such as mobile phone contracts, indemnity covers, and voyage packages. Tchibo is one of the prime German store chains with more than one thousand shops. The company is based in Hamburg, but the coffee is sold in supermarkets in Poland, United Arab Emirates, Russia, Jordan, Israel, Syria, Hungary, Romania, Slovakia, Czech Republic, and United States.

Tchibo expanded into various channel dealers and user commodities company including a broad variety of edible products (e.g. cakes, cookies, variety of coffee, etc), non-edible products (e.g. apparel, household appliances, electronics, etc), and service. All these offerings were accessible in stores and online. The diversified range of offerings made the company's identity perplexed and confusingly difficult to recognize to classify the brand's line of products. Some customers still view the company as merely a coffee shop where they can buy daily life products and gadgets on sight. The managers of the company observe these differences in perceptions as opportunities.

The diverse segments of Tchibo raise new challenges for the company. All three segments (i.e. edibles, non-edibles, and services) hold competitors in their specified fields. The astonishing factor of the company is that it does not aim to establish trends but discover the frequently repeating trends and adapt to these settled trends to be saleable to the market. This identification of vogue is usually assisted by heavy research.

Literature Review

Aksu, Pektas, and Karaboga (2011, pp. 48-70) conducted studies to investigate Tchibo's desires to acquire maximum profit in maturity period of the product with the concept of artificial scarcity and get an advantage against its rivals and leads in the supply chain through the approach of artificial scarcity. They conducted a survey on 118 consumers by the convenience sampling method. The frequency analysis, regression analysis, and factor analysis were interpreted using SPSS statistics program. In the research model, the effect of the demographic characteristics on the independent variables, and the effect of this on the brand loyalty which is a dependent variable were reviewed. The questions were grouped under 4 factors upon the factor analysis according to the data results of the study participants. These factors are instability perception, price and store ...