Illy Cafe Marketing analysis

Topics: Coffee, Illy, Trieste Pages: 9 (952 words) Published: July 27, 2014
Préparé pour :Pr. Nick Blake
Préparé par : Konstantin Mochalov
Date : 24 june 2014

Table des matières

Stakeholder Analisis

Andrea Illy, Chairman and CEO, illycaffè SpA
Riccardo Illy, President, Gruppo illy SpA
Greg Fea, CEO and president of illycaffè North America,
Giacomo Biviano, head of the Europe, Middle East, Africa, and Latin America division Andrea Applewick, project manager of the Ernesto Illy Foundation Quality directors
Brazilian, African, Central American coffeemakers (farmers, manufacturers, plantators, roasters) Liquorers (master blenders)
Competitors ( Starbucks and Lavazza in US), Nespresso in Capsule business Logistics (drivers, managers)
Coffee drinkers ( customers)
Students from Università del Caffè,
Scientists in the Illy laboratory that Ernesto made

SWOT Analysis


Illy Gruppo is well known as a premium coffee maker. Their coffee bean suppliers need to follow a very demanding standards in order to work with them. Throughout the years, Illy Gruppo has developed an outstanding value in coffee making. This company has a long family story. Francesco Illy, the founder of the company, was the first one to develop the first coffee machine. In 1933, there was the first established Illy coffee making production. In 2014, Illy is a well known brand operating on 5 continents in 150 different countries. Apart from a very fine taste of the coffee, the company found itself in other business such as coffee machines, capsules, and even established its own University. The way Illy promote its product differs from normal marketing strategies. It offers an experience (including coffee tasting and barista lessons) during art exhibitions. Illy Gruppo is a well-diversified company, producing not only coffee but also chocolate, tea, candied fruits by its subsidiaries. Illy has its own market target, HoReCa, which includes hotels, restaurants and cafes. This company is well developing. It is possible to find Illy products almost in every developed country.


The biggest risk for the company is that a coffee is not a necessity. If there is an alternative product to coffee in the future, Illy will suffer. There is a risk in overexpansion, due to shortage of suppliers. Quality of the beans may go down if the expansion of the company will be out of the control. Illy should always remember that it has small business units, meaning that it can not demand more than these units can sell. The other weakness that Illy may have is higher loan rates to its shops overseas. It should also be careful with Tax structure, due to its obscurity in different countries.


One the main opportunities for Illy, is that they are giving somewhat independence to its subsidiaries, letting them improvise and research for new products. The access to Illy proprietary system will lead the industry. Since Illy company possesses itself as a premium coffee maker, their post sale services can be better developed; therefore, there will be more returning customers. Since this is a holding company, including different brands there is always a place for a better development of the small brands under the name of Illy Gruppo., by implementing new products and services to the growing market. Also, as Illy changed the perception of espresso in US, it should now concentrate on the emerging Asian market, making them drink Illy espresso as well.


Since Illy Company is growing fast, and their standards for coffee are exceptionally demanding, the production of the coffee beans is limited, and as it was stated before Illy may face a dilemma between further rapid expansion and drops in quality of the coffee. There is a high competition going on in serving pod and coffee machines, where Illy might lose it market share due to the pressure from its competitors. New competitors are always a threat to the...
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