Peet coffee company is a premium coffee roaster located in California, USA. Its primary focus is providing the best freshest coffee for office and home enjoyment. The company also provides a personalized and high experience for all its customers to enjoy standard coffee and tea. It is a privately owned company selling and in retail business and upholding best customer satisfaction. The company has been in operation in the united states for several years, and now it is planning to expand its business to Italy. One of the best ways to expand its business in the foreign market is through exporting.
Exporting
In this strategy, Peet coffee company will be producing its products in the United States and selling the surplus products to Italy. It is the easiest method that the company can use to shift to a new market. (Lasserre, 2017). The strategy will also be easy for the company because it will hire agents and distributors who will have an obligation of taking care of exporting and promoting the products in the foreign market and have a contractual agreement with them. Furthermore, through exporting, the company will cut the expenses of starting new operations in Italy. When marketing and promoting its products in Italy, the company will have to let potential purchasers know what it offers through advertisements, local sale forces, or trade shows. However, the company needs to realize that there may be advantages and disadvantages of using the exporting strategy. One of the challenges is translating information about its products into a language that Italians can read and understand. It may be a requirement by the agents marketing the product.
Key Competitors
Despite doing so well in its home country, Peet coffee company has major competitors in the United States. Starbucks corporation is a key competitor considering it is one of the biggest coffee shops having various branches in different parts of the world. It is a high-class roasting, marketing, and retailing shop for exceptional coffee (Sakal, 2018). The company has licensed trademarks and sells different varieties of tea and coffee products. Additionally, the company also markets its product mix through other brands within its line of companies. It has outsmarted its competitor by applying differentiation strategies by offering high-quality and premium products.
On the other hand, Peet will also face competition from Italian coffee shops such as La Casa Del Coffee Tanza D’oro, Italy’s best coffee shop. The company’s coffee has a unique flavour, and the prices are popular, making it the ideal coffee house for every Italian person (Sakal, 2018). Due to the Italian coffee market expansion, La casa Del Coffee Tanza D’oro has continued to transform to compete favourably. Therefore, for Peet to penetrate this foreign market, it has to meet the market standards because Italians love their coffee well.
Localization
Localization is the process of making products more accessible to distinct audiences in the target market. Peet has to incorporate localization in Italy by translating its coffee ingredients and instructions into a language that Italians can understand and connect with (Lasserre, 2017). Additionally, localization will allow Peet company coffee to resonate with the Italian consumers and incorporate vital culture, making it feel familiar. Proper localization will help the company develop a tactical strategy to conquer the Italian market successfully. Italians are different from Americans in terms of coffee consumption; therefore, localization will help Peet widen their customer base in their diverse language and customs.
Similarly, localization will not only help Peet coffee company but also help the consumers. This is because the local language will not hider them from consuming the foreign product. At the same time, localization will help Peet meet its Italian customers’ needs, broaden its customer base and avoid pitfalls that may arise due to cross-cultural marketing (Lasserre, 2017). To improve localization, the company can base its localization strategy on memorable experiences. Furthermore, by defining and communicating its brand in the Italian market potential, buyers will always think of the company products when deciding between the company products and its competitors.
Product Strategies
Notably, venturing into a foreign market that comprises strong competitors such as Italy is challenging; therefore, Peet coffee company has to have a compelling product strategy. One key strategy is product differentiation which will help the company provide its product to a specific market niche and differentiate it from its competitors (Jasmani & Sunarsi, 2020). Selling its coffee at a low price does not mark its value. Peet coffee company can offer different varieties of coffee and tea to its new customers at a premium price. Additionally, focusing on the product differentiation strategy is essential, and advertising strategy regarding this strategy.
The company should not focus on advertising its products traditionally, instead focus on modern marketing. The company should also maintain good customer service by going the extra mile and ensure that a customer is satisfied and happy about the company products (Jasmani & Sunarsi, 2020). Additionally, they should also develop an authentic brand identity and product logo to incorporate in all merchandise that the customer will use. Peet should also focus on solving customer needs and help them meet their needs. Creating customer value by primarily focusing on the best customers will increase customer value, and the business will also grow.
Peet coffee company can calculate the pricing strategy depending on a combination of the targeted market. Having a strong brand identity will help the company increase its sales even if it sells its products at a higher price (Thabit & Raewf, 2018). It can incorporate brand selling by making it exceptional and placing its stores in strategic places in Italy. The company can also apply the promotion strategy and strategic marketing movement and establish anticipation for limited products. They can also use premium pricing because the market has a steady competitive advantage for the company.
Placement
Product placement is essential for Peet coffee company because it will help it increase sales, attract more customers and create brand awareness. It is also a way of creating product awareness (Thabit & Raewf, 2018). Additionally, Peet will also require distribution channels to ensure that the exported product will reach the consumer. The first channel the company can use is the manufacturer to agent, wholesaler, retailer, and consumer. Secondly, they can use the manufacture, retailer, consumer channel. Lastly, they can use manufacturer, agent, consumer channel.
Promotion
A person cannot purchase a product that he has never heard of. Peet coffee company can promote its product through advertising on different social media platforms such as Facebook and Instagram (Thabit & Raewf, 2018). It can also use personal selling; this is whereby salespeople from the company will give the sales presentation, for instance, through telemarketing and sampling. They can also perform a short-term campaign to familiarize people with the product and build a customer relationship by providing appropriate information and handling both positive and negative comments.
Conclusion
Peet coffee company’s intention to venture into the Italian market is an excellent idea to increase its sales and broadened its market. The appropriate way to enter the market is through exporting, where the company will look for agents in Italy who will distribute its products. Peet has to incorporate localization in Italy by translating its coffee ingredients and instructions into a language that Italians can understand and connect with them. Additionally, choosing the right product strategy will help the company outshine its competitors.
