Illy Ground Coffee Marketing Analysis

Illy Ground Coffee Marketing Analysis Nowadays, Illy can be characterised as one of the leading producers of high quality ground coffee in the coffee manufacturing industry. Illy has entered the coffee sector in 1933 by Francesco Illy, and in 1990s had its most important innovation, which began to look for the best coffee in Brazil, Africa, Central America and Asia (italtrade.com, 2010). It is based in Italy with a workforce around 700 people and operates in a wide range of global network (Datamonitor, 2009). Illy ground coffee can be used in all methods of coffee preparation and especially for espresso machines. The product comes in various forms of medium roast, dark roast and decaffeinated. While medium roast is about a smooth flavour mixed with aromatic bits of caramel and chocolate, dark comes to enrich the flavour with notes of cocoa (illy, 2010a). Similarly to medium roast, decaffeinated contains aromatic flavour of caramel and chocolate with reduced caffeine (illy, 2010a). Within the industry, Illy is known as an innovation pioneer, as it focuses on coffee perfection rather than creating something trendy and seductive. Achieving â‚ ¬280 million with net profits of â‚ ¬8 million, Illy succeeded by attaining 54% of total sales through exportation (illy, 2010b) The country and coffee market attractiveness PEST Analysis Regarding Morisson (2006), PEST analysis can assist the business in building up the best possible knowledge of the external environment in which the company is planning to operate in, so as to avoid costly mistakes. Therefore, an analysis has been carried out and can be viewed in Appendix 1 below. Upon reflection, the most important key environmental influences of PEST analysis have been considered and highlighted below: Economic Events: The recent global recession had directly affected the industry where people buy only essentials products, as their incomes have been decreased (Euromonitor, 2010a). Regulations: Legislations that the law establishes can directly affect the industry. Taxes and business regulations are rather heavy, making it hard to conduct business (Euromonitor, 2010a). Globalisation: Globalisation can be characterised as one of the most powerful factors that have changed the conditions and situations of the world economies, and especially for businesses (BBC, 2010). The reduction of national boundaries and the freedom of companies to transport is also important factor of change. Grounds Coffee Market Analysis McLoughlin and Aaker (2010) suggest that an examination of the market can assist to determine its current and future attractiveness. Even in the negative impact of recession, the Turkish coffee industry has shown a positive growth. Statements show that during the last years, ground coffee had a 5% increase in volume sales with the total of 33.6 TL million which is expected for a further 4% increase until the end of 2014 (Euromonitor, 2010a). With Nestle controlling 61% of the markets share and coffee unit prices increasing in recent years, the market has as consequently shown a positive growth (Euromonitor, 2010b). Considering the distribution channels, the market includes various ways of supply such as restaurants, bars, cafes, stores and so on. Competitive Analysis In order to identify the attractiveness of an industry, Johnson et.al (2008) argues that the five forces framework is a helpful tool for such a process. Thus, a Porters five forces Analysis has been carried out in Appendix 2. From the analysis summary, we can see that even with its growing direction, the coffee industry can be defined as an industry where brand loyalty is of major importance to the existence of a business. A strong emphasis is required in order to achieve good customer relationships and market share over the current competitors. In addition, the threat of new entrance is still high even throughout strong competitive conditions that exist in the market. Finally, the threat of substitutes is high as new alternative products can satisfy the need of coffee. Tea and hot chocolate are the major players for substitutes. Buyer Analysis Nowadays, competition has become stronger than other decades. Therefore, creating a good understanding of the potential customers (Buyer Behaviour) can be a vital tool for the company to get one step ahead of the competition. According to Euromonitor (2010a), ground coffee has been punched by the instant coffee where its sales are increasingly becoming much more than ground coffee, with young people preferring the more convenient method of instant coffee. On the other hand, older people insist on the traditional ground coffee. In addition, people try to get a cup of coffee mostly from bars, restaurants and coffee shops rather than to drink at home during every season of the year, while during winter; the consumption of coffee usually has a higher demand. 3) Opportunity Statement Casson and Buckley (2010) defines opportunities as the advantageous position that products, services, raw materials and methods include in order to increase company profits in the new market. 4) Marketing Objectives Brassington and Pettit (2006) suggest that objectives are important drivers of what the companys marketing strategies must be able to achieve. Following SMART concept (Specific, Measurable, Achievable, Realistic, Time able), Illys main business objective is to manufacture and market products in such a way as to create a value that can be continued over the long term from stakeholders (Hollensen, 2010). Another important aspect of marketing objectives is the brands reputation that the company must achieve in the new market. A smart and long-time promotion with the combination of customer satisfaction can lead to the brand awareness and to profitable sales. The company can understand the significance of loyalty where illy must build on that as without loyal customers the company would not exist. As a consequence of customer loyalty, customers are willing to buy more from the same brand/company. Therefore, the company must be prepared to establish a wide range of coffee ground selections (MindTools, 2009). In addition, illy must manage to maintain its promise to follow and respect all applicable local laws in each of its potential markets.

Ib Biology Hl2 – 6.1 (Digestion)

6. 1. 1 Explain why digestion of large food molecules is essential. There are two reasons why the digestion of large food molecules is vital. Firstly, the food we eat is made up of many compounds made by other organisms which are not all suitable for human tissues and therefore these have to be broken down and reassembled so that our bodies can use them. Secondly, the food molecules have to be small enough to be absorbed by the villi in the intestine through diffusion, facilitated diffusion or active transport and so large food molecules need to be broken down into smaller ones for absorption to occur.Summary: ? 1. Food needs to be broken down and reassembled. 2. Large food molecules need to be broken down into smaller ones. 6. 1. 2 Explain the need for enzymes in digestion. Enzymes are needed in the process of digestion as they are the biological catalysts which break down the large food molecules into smaller ones so that these can eventually be absorbed. Digestion can occur natura lly at body temperature, however this process takes a very long time as it happens at such a slow rate. For digestion to increase in these circumstances, body temperature would have to increase as well.However this is not possible as it would interfere with other body functions. This is why enzymes are vital as they speed up this process by lowering the activation energy required for the reaction to occur and they do so at body temperature. Summary: ? 3. Enzymes break down large food molecules into smaller ones. 4. Speed up the process of digestion by lowering the activation energy for the reaction. 5. Work at body temperature. 6. 1. 3 State the source, substrate, products and optimum pH conditions for one amylase, one protease and one lipase.AmylaseProteaseLipase EnzymeSalivary AmylasePepsinPancreatic Lipase SourceSalivary GlandsChief cells in stomach liningPancreas SubstrateStarchProteinsTriglycerides such as fats and oils ProductsMaltoseSmall polypeptidesFatty Acids and Glycerol Optimum pHpH 7 pH 1. 5 – 2pH 7 6. 1. 4 Draw and label a diagram of the digestive system. ?Figure 6. 1. 1 – The digestive system 6. 1. 5 Outline the functions of the stomach, small intestine and large intestine. The stomach is an important part of the digestive system.Firstly it secretes HCL which kills bacteria and other harmful organisms preventing food poisoning and it also provides the optimum conditions for the enzyme pepsin to work in (pH 1. 5 – 2). In addition, the stomach secretes pepsin which starts the digestion of proteins into polypeptides and amino acids. Theses can then be absorbed by the villi in the small intestine. The small intestine is where the final stages of digestion occur. The intestinal wall secretes enzymes and it also receives enzymes from the pancreas.However the main function of the small intestine is the absorption of the small food particles resulting from digestion. It contains many villi which increase the surface area for absorpt ion. The large intestine moves the material that has not been digested from the small intestine and absorbs water. This produces solid faeces which are then egested through the anus. Summary: Stomach: 6. Secretes HCL which kills bacteria. 7. HCL provides optimum pH for pepsin. 8. Secretes pepsin for protein digestion. Small intestine: 1. Intestinal wall secretes enzymes 2. Receives enzymes from the pancreas. . Has villi for absorption of food particles. Large intestine: 1. Moves material that has not been digested along. 2. Absorbes water. 3. Produces faeces. 6. 1. 6 Distinguish between absorption and assimilation. Absorption occurs when the food enters the body as the food molecules pass through a layer of cells and into the bodies tissues. This occurs in the small intestine which has many villi that are specialised for absorption. Assimilation occurs when the food molecules becomes part of the bodies tissue. Therefore, absorption is followed by assimilation. 6. 1. Explain how the structure of the villus is related to its role in absorption and transport of the products of digestion. The structure of the villus is very specific. Firstly there is a great number of them so this increases the surface area for absorption in the small intestine. In addition the villi also have their own projections which are called microvilli. The many microvilli increase the surface area for absorption further. These microvilli have protein channels and pumps in their membranes to allow the rapid absorption of food by facilitated diffusion and active transport.Also, the villi contains an epithelial layer which is only one cell layer thick so that food can pass through easily and be absorbed quickly. The blood capillaries in the villus are very closely associated with the epithelium so that the distance for the diffusion of the food molecules is small. This thin layer of cells contains mitochondria to provide the ATP needed for the active transport of certain food molecules. Final ly, there is a lacteal branch at the centre of the villus which carries away fats after absorption. ?Figure 6. 1. – Intestinal villus? Summary:? 9. Many villi increase the surface area for absorption. 10. Epithelium is only one cell layer thick and so food is quickly absorbed. 11. Microvilli on the villi increase the surface area for absorption further. 12. Protein channels and pumps are present in the microvilli for rapid absorption. 13. The mitochondria in the epithelium provide ATP needed for active transport. 14. Blood capillaries are very close to the epithelium so diffusion distance is small. 15. The lacteal takes away fats after absorption.

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A Brief Note On Racial And Ethnic Inequality - 1656 Words

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