History of Tchibo Company Tchibo, the world's fourth largest coffee player by retail value and German chain of coffee shops and cafés, also known for.

History of Tchibo Company• Tchibo, the world's fourth largest coffee player by

retail value and German chain of coffee shops and cafés, also known for its weekly-changing range of other products.

• 1949 Max Herz established the company.

• In the 1970s, Tchibo became the first branch in Germany.

• For 60 years, the Hamburg-based business has scouted out trends and customer preferences in order to offer the best products at the right time.

• The latter includes: clothing, household items, electronics.

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“ Every week a new world ”

Tchibo in Turkey In 2004 Tchibo began the marketing

research in Turkey In year 2010 Tchibo has 37 branches in Turkey

Position industry

• Headquarters:Hamburg Area, Germany• Industry: retail• Type:Privately Held• Status:Operating• Company Size:12,000 employees • 2009 Revenue:3,200,000,000 [EUR] • Median Age:28 years • Median Tenure1.5 years• GenderMale:78% • Female:22%• 1300 branches

Strategies

• Pricing strategy: Use the penetration pricing strategy and make sure that in all distribution channels the products are offered for the same price.

Price and quality strategy Buyers choose Tchibo products because they

look for excellent quality at a fair price. They trust Tchibo and the guaranteed quality. They want great coffee taste and the experience of the „Every week a new experience‟.

Product and quality

TCHIBO has it’s own brand named TCM. It serves as a guarantee of carefully selected products that made to excellent quality standards. You will find the TCM Seal on each of our products, from T-shirts to cooking pots. This guarantees product quality, careful selection and exclusive production. TCM stands for 'Tchibo Certified Merchandise'.%30 TCM products are produced in turkey especially in Bursa.

Location strategy

• “Our main criterion for identifying potential locations is the location itself, whether it is a crowded area, a High Street or a shopping center, and the size of the shop for presentation of food and nonfood, as well as for the coffee bar area.”

Who are the current and potential customers of Tchibo?

• The current buyers are households in several European countries who are searching for great coffee taste at a fair price and useful value for money consumer goods. Tchibo offers products for all ages and income levels. Although the product range is not gender-related, it should be considered that the majority of the buyers will be women because they mostly do the family shopping.

Store atmospherics strategy

• The smell of coffee in the store adds to the ambience. “coffee bar area.” „Every week a new-Experience‟ marketing concept, plus the three-in-one-shop atmosphere, the desire to buy awakes

Comparison with the competitors with regard to strategies

• There are no direct competitors, because the Tchibo concept is unique worldwide

• So it has two kind of indirect competitor:• Food products competitors: starbucks, gloria jeans• Consumer good competitors: wal mart, metro • Since year 1997 there was an other Berlin-based

direct competitor company eduscho but after buying eduscho’s rival tchibo became the market leader.

Communication strategy

• In the strategic options three distribution channels were selected: joint venture, franchise and e-commerce

• Customers can order the non-food products and the coffee range with the mail-order magazine which is published monthly

Evaluation of Tchibo

• Tchibo has a worldwide unique three-in-one-store model

• Great know how in the coffee consumer goods business

• Good business relations to cooperation partners and suppliers

• It offers high quality products at a low price

• Early adopter of internet and strong in e-commerce.

Prepared By

• Gülşah YANAR

• Gizem TAŞKIN