Case Study Illy Cafe

Topics: Coffee, Starbucks, Caffeine Pages: 10 (3039 words) Published: April 16, 2013
About Illy

Company background and description
The history of illycaffè is linked to the lives of the company's founder, Francesco Illy, and his family. Francesco in 1933 set up a business in the cocoa and coffee sector, and then decided to concentrate exclusively on coffee. Nowadays the illy group is made up of several companies located in North America, France, Germany, Spain and Benelux. Product

Illy serves coffee to its customers. They insist on the fact that there are not selling basic coffees but the one which is a result of Scientifics’ research. They want to serve the best coffee due to a result of a long experience, knowledge of coffee biology and chemistry, very good skill at roasting, enabling technologies, and also a family’s entrepreneurial passion. They are also selling products which fit to the coffee world like, machines, capsules and also accessories. Revenue

In 2007 turnover amounted to $221.000.000. In 2011 the turnover was $342.000.000. There is a real increase over the years. Customers
70% of its sales circuit cafes, hotels and restaurants, 20% for individuals and 10% in companies, these are illy’s customers. Illy has developed solutions for small restaurants, small hotels, cafes and other places of conviviality where coffee consumption is low but still want a perfect coffee. The company offers machines meeting the needs of its business customers. To match with its image of unique coffee Illy is increasing partnerships with the biggest names in tourism Meridien and Hyatt. The company also Illy customers offices, employees may have during their break espresso from the brand. To do this, Illy provides the I-Espresso and offers a complete range. Also Illy own its own bars called “Illy bar”, so the customer can go there and have a coffee in the company’s atmosphere.

It is also possible to buy coffee brand for personal use at home. The website offers the purchase of cafe, cafe machine but also derivatives (eg cups). Most of its customers are the professionals (served in more than 50,000 public places) but Illy is developing the “Illy’s bar” to create an atmosphere for the company. Location

Illycaffè was founded in Trieste in Italy. Nowadays the Illy group is a multinational organization that operates in more than 140 countries across the 5 continents. The main markets for Illy are US, Europe and Japan. Employees

The company has about 700 employees.
With a turnover of € 695 million and a growth of over 30% per year since 2001, the European leader in espresso is Nespresso. The level of competition that Illy faces differs according to the sectors, for example in the Hotel, Restaurant and Café sector the main competitors are Starbucks and Lavazza. Whilst in the coffee machines and coffee capsule systems the main competitor is Nespresso from Nestle group. The competition in both sectors is quite intense with Starbucks and Nestle having global reach. The advantages these companies have over Illy are their vast economies of scale, stronger brands and higher customer reach. Mission and vision

The mission: produce and deliver the best coffee that nature can offer for connoisseurs and those who will appreciate it with a special attention to methods of growing and processing the most suitable and sustainable. They want to create an emotional experience through the degustation of their coffee. The vision: being an innovative company, proud of its history rooted in the contemporary and future-oriented. Combine art, science and experience to offer the best products. They have for vision to be recognized as a world reference for coffee culture and excellence, ti be the first choice of professionals. The values: passion for excellence, the pursuit of perfection and ethics, the valuation of individual talent and teamwork. The desire to improve the lives of all those involved in the coffee chain. Attention to people and the environment.

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