Case study Caffè Bean is a European style coffee house brand with main office located in Italy. It is already being recognized as one of the most successful coffee businesses in Europe with more than 1400 coffee houses in 17 countries. Although being criticized for offering limited menu options for vegetarians and vegans, Caffè Bean attracts high profile coffee lovers who would not mind paying more on an array of exotic coffees, beverages and meals. They procure high quality coffee beans only from of Latin America and that too directly from farmers eliminating the role of intermediaries. The highest level of quality is ensured while selecting the ingredients using technology including Artificial Intelligence enabled coffee quality testing. However, Caffè Bean is facing criticism from several Environmental agencies claiming about their use of disposable plastic and thereby causing more environmental pollution. Caffè Bean has incurred unexpected fall in the revenue during COVID - 19 pandemic. Further, there is a possibility that some Governments may increase the taxes that might worsen the company's financial situation. In addition, the farmers are demanding for a higher price for the exofic coffee varieties. Despite this situation, company is trying to expand its network stores in Europe for gaining a greater market share. Caffè Bean has signed an agreement a Bahrain based company which would he a franchicee gnd will be on the GCCundar Coffa Dean's brand ng

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Transcribed Image Text:Case study Caffè Bean is a European style coffee house brand with main office located in Italy. It is already being recognized as one of the most successful coffee businesses in Europe with more than 1400 coffee houses in 17 countries. Although being criticized for offering limited menu options for vegetarians and vegans, Caffè Bean attracts high profile coffee lovers who would not mind paying more on an array of exotic coffees, beverages and meals. They procure high quality coffee beans only from of Latin America and that too directly from farmers eliminating the role of intermediaries. The highest level of quality is ensured while selecting the ingredients using technology including Artificial Intelligence enabled coffee quality testing. However, Caffè Bean is facing criticism from several Environmental agencies claiming about their use of disposable plastic and thereby causing more environmental pollution. Caffè Bean has incurred unexpected fall in the revenue during COVID - 19 pandemic. Further, there is a possibility that some Governments may increase the taxes that might worsen the company's financial situation. In addition, the farmers are demanding for a higher price for the exofic coffee varieties. Despite this situation, company is trying to expand its network stores in Europe for gaining a greater market share. Caffè Bean has signed an agreement a Bahrain based company which would be a franchisee and will be opening many stores across the GCC under Caffè Bean's brand name. However, not much is known about whether customers would be willing to pay a premium for the exotic coffees wherein these markets already have international brands like Starbucks, Costa, and local coffeehouses. A partnership agreement is in progress with Emirates Airline for serving the coffee onboard which can be a move towards acquiring greater market share and attracting a newer consumer segment.