STRATEGIC MARKETING

Strategic Marketing

Strategic Marketing

Introduction to the Company

I have chosen Gaggia Coffee manufacturing Company as the desired company because, Gaggia is the leading coffee company today and, has numerous retail stores around the world. Let us start with the brief overview of Gaggia. Gaggia is a world-renowned manufacturer of coffee machines for household and professional use. Gaggia is a symbol of reliability, tradition and comfort. The history of the company began in 1902, when Achille Gudgeon first starts developing coffee machines. In September 5, 1938 Company obtained a patent number 365,726 on the production of coffee machines, precluding the application of steam to make coffee. This date is considered the birthday of coffee "espresso" .

The Gaggia Company was founded in 1947 by Achille Gaggia in Italy. Since then, the renowned company develops and manufactures espresso machines for use in household and industry. The share of production of coffee machines in the Italian market by Gaggia is 30 percent. Currently, the company produces about Gaggia 200,000 coffee machines for the consumer market and about 4000 professional machines supplied to 35 countries. Gaggia produces the most complete range of household coffee machines (from carob espresso coffee machines to automatic espresso machines), ideally combining high technology in recent years and long tradition Gaggia.

Task 1: Market selection and final destination country

I have selected the Saudi Arabia and, discuss the environmental aspects of doing business in Saudi Arabia. The Saudi Arabia is conventionally a country of tea drinkers, but coffee is now very popular, especially among younger consumers. Coffee shops, particularly Gaggia, can help consumers develop an appreciation for specialty coffee. Higher-grade coffee beans, improved roasting methods, and better brewing equipment have improved product quality and increased customer expectations. Specialty coffee-based drinks, like cappuccinos, attract younger consumers who prefer sweeter beverages (Williams, 1996, p12).

As market growth slows from record highs, some companies look to expand overseas. Certain Saudi markets appear to be saturated, with coffee shops seemingly on every corner. Both Gaggia have expanded outside the Saudi Arabia, primarily through licensing agreements. Gaggia aims to generate half its revenue from locations outside the Saudi Arabia.

Reasons for choice of the country

The Saudi Arabia is conventionally a country of tea drinkers, but coffee is now very popular, especially among younger consumers. Coffee shops, particularly Gaggia, can help consumers develop an appreciation for specialty coffee. Higher-grade coffee beans, improved roasting methods, and better brewing equipment have improved product quality and increased customer expectations. Specialty coffee-based drinks, like cappuccinos, attract younger consumers who prefer sweeter beverages (Williams, 1996, p12).

As market growth slows from record highs, some companies look to expand overseas. Certain Saudi Arabia markets appear to be saturated, with coffee shops seemingly on every corner. Gaggia have expanded outside the Saudi Arabia, primarily through licensing agreements. Gaggia aims to generate half its revenue from locations outside the Saudi Arabia.

Consumer buying behaviour in Saudi Arabia

The Saudi Arabia has traditionally been a country of tea drinkers, but coffee is now very popular, especially among younger ...