Are there new opportunities for new coffee brands to penetrate European markets?

[wscafe]

I've recently researched famous coffee brands in Europe (Tchibo, D.E Master, Illy, etc.) and found that many of them have been in the industry for many years. For example, D.E Master Blenders 1753 has brewed coffee since 1753. Let's say, in 1753, Vietnam was still having Kings and royal families. What a very long history. This means, they have a very strong presence in people's mind, a strong distribution networks, and in somewhat are an inevitable part of local culture. Therefore, how can new coffee brands find right ways to compete against those coffee giants?

 

[ensoluna]

you can not compete with them.
either you work with them or find the areas that they are lacking.

 

[wscafe]

Really, Ensoluna? Could you please tell me the reasons?

 

[ensoluna]

that would be too long to write.
if you have been in coffee business long enough, specially in export sale, you should know it by heart.
if not, you got some more study to do.

I would love to explain in detail, but i do not think most of people would appreciate nor take time to read it anyway.

 

[Mr.Peaberry]

Ensoluna is right...there are no short answers...just discussions. Nobody knows exactly where a mature market is vulnerable, and if they do, it's not likely that you're going the get them to cough up the information just by asking politely. Competition in coffee is fierce, and there are likely to be thousands of newbies at any given time, trying their luck in the marketplace. Some will succeed; most will fail. There is only one reason business hire consultants, advertising agencies, and public relations firms...to improve their chances for success.

 

[wscafe]

that would be too long to write.
if you have been in coffee business long enough, specially in export sale, you should know it by heart.
if not, you got some more study to do.

I would love to explain in detail, but i do not think most of people would appreciate nor take time to read it anyway.

It seems that coffee is not like technology, right? Ten years ago, no one believes that there would be a brand which can kick Nokia out of the game. But now, where is Nokia?

 

[wscafe]

Ensoluna is right...there are no short answers...just discussions. Nobody knows exactly where a mature market is vulnerable, and if they do, it's not likely that you're going the get them to cough up the information just by asking politely. Competition in coffee is fierce, and there are likely to be thousands of newbies at any given time, trying their luck in the marketplace. Some will succeed; most will fail. There is only one reason business hire consultants, advertising agencies, and public relations firms...to improve their chances for success.

You might be right. Should we focus on new emerging markets only?

 

[expat]

I don't understand the question, or at least the way I understand it the answer is obvious.

New brands come in to the market and compete every day. If they have a unique selling proposition then they MIGHT be successful. If they are a copycat they don't have much to compete on and will most likely fail. A new brand can differentiate itself and grow. It can't compete head-to-head on the same terms (unless it has jillions of dollars to spend buying a position in people's minds - and many well-heeled companies that tried to branch out and do that were dismal failures).

Can you go head to head though with the brands you mention, selling in their same distribution channels? Yes, but you'll need time and a lot of luck and new positioning in people's minds. Starbucks monopolized the coffee shop niche. They positioned themselves as selling a better coffee experience - and they did. And now they've gone from the coffee shop to being on most supermarket shelves, right next to the major coffee brands. Heck, they're even in Tesco in Ireland. And they are in the ice cream section, and the chilled drink section, etc., extending their brand.

So - here's the hard part - find a new position for coffee to occupy in people's minds. Then spend a few decades owning that position and then extend your brand. Simple.

 

[Mr.Peaberry]

Someone once told me that it takes about 20years to become an overnight sensation!

 

[wscafe]

You are right, Expat. I think niche market can work effectively. For distribution channel, I've heard that modern trade with supermarkets seemed to reach its top of growth in Europe. And ecommerce is selling good over there. If so, should we focus on online selling?