Strategy for Entering and Developing International Markets Mokate Poland

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STRATEGY FOR ENTERING AND DEVELOPING INTERNATIONAL MARKETS

Justyna Michel

Characteristic of the Mokate company

Mokate is one of the biggest polish producers of coffee, tee, coffee creamers and since 2011 exclusive distributor of Lavazza coffee in Poland. The history of Mokate has started in 1927 in Goleszów (in southern Silesia) where Joseph Mokrysz opened a shop, a restaurant and acquired concrete plant. In this form, the Mokrysz family business was running for the next three generations. In 1990 the grandson of Joseph Mokrysz, Kazimierz handed over the company to his wife Theresa. She changed both the company name to MOKATE (from the first letters- MOkrysz KAzimierz, TEresa) and the main activity of her company which from that moment was manufacturing of powder coffee creamers. The mile stone for the company turned out in 1992 when Mokate launched on a market innovative at that time product: Mokate Cappuccino Coffee. Two years later Mokate Cappuccino became a leader on the market of cappuccino instant coffees and nowadays has 80% market share on this market in Poland.

1. Mokate Cappuccino

Source: http://rynekfmcg.com.pl/nowa-linia-mokate-cappuccino/

In 1994 Mokate begun exporting of its products to neighbor countries. The growing demand on local and foreign markets forced company to build new headquarter with bigger plant, more warehouses and offices. After opening new manufacture the production increased twice and in Mokate product portfolio there were already more than 10 items. In the course of time there appeared again a need to extend product line. New one, more modern and technical advanced manufacture enabled Mokate to produce more and faster. Mokate product range had 200 items which were selling in 30 countries.

The next very important moment for Mokate was in 2000 when it decided to build a 12-floor “tower” to product powdered cream by oneself. MOKATE didn’t have to buy imported whiteners and frothers anymore. What’s more Mokate begun to be supplier of these products both in Poland and abroad.

The company was still fast-growing and gaining more market share. In 2002 Mokate acquired one of the biggest tee producers in Poland: Consumer. After this transaction Mokate was controlling 18% of the polish tee market. The total sales increased to 80 Million Euro and the number of employees to more than 1000. In 2005 Mokate made another one acquisition. This time it bought Czech well-known producer of tee DUKATA from Zilin which was also the owner of very strong brand Dukata. Later in 2006 Mokate took over TIMEX, the leader on Czech instant products market what consequently gave Mokate a position of a leader in Czech Republic as well. In 2009 Mokate became the owner of one additional Czech company: MERILLA- producer of ground coffee, beans coffee and sweets. In 2007 export has reached a 40% of total sales which was 100 Million Euros in the end of a year. Mokate was selling its whiteners and frothers in 60 countries all over the world, and the amount of employees raised to 1200 people. Nowadays Mokate Group is created by 9 companies within 6 are located abroad. Mokate is still a leader on an instant cappuccino market in Poland and the second player on the tee domestic market. 57% of total sales comes from export and the turnover of the group has crossed half one billion zlotys. In 9 out of 10 shops in Poland there is sold at least one product of Mokate. Since 2011 Mokate is also exclusive distributor of Lavazza coffee on domestic market.

2. Mokate Group structure

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Product portfolio

Mokate has a wide product range. Within we can find:
• coffees
• tees
• creamers
• cocoa
• drinking chocolate
•...
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