Development of the Eraclea brand in Ho-Re-Ca (Hotel-Restaurant-Cafe)

Résumé du document

We are proud to present you our final report along with a presentation. Through our efforts, we won the opportunity to work and carry out a strategic project concerning Deotto Espresso System business which is on the verge of signing a contract with a famous Italian company Eraclea, which produces and distributes (directly to final consumers and indirectly to Hotels-Restaurants-Cafes) a wide range of high quality products such as hot/cold chocolate, ice-creams and teas, following the new trends of market consumption, that are flavor and original presentation oriented.

We first began by organizing our team to work and communicate effectively. To launch the project, we assessed the market of professional Ho-Re-Ca and chocolate production and distribution in France. Evaluating the internal and external situation of DES and Eraclea, defining the market, explaining the political, economical and social macro environmental factors, understanding the competition were the first steps of the project. Our interlocutors, Laurence Thébaut, responsible for marketing of DES, and Giorgio Guerra, sales manager, gave us information by providing us data, brochures and confidential corporate documents in order to well understand their needs and expectations from us. So, we met our clients in the headquarters.

The second part of the report is the most important one; it reflects the real need of DES. As Eraclea is going to penetrate the French professional market of Ho-Re-Ca, they contracted with DES to benefit from the national distribution network of the existing and potential clients who buy Lavazza capsules and machines (Remember that DES is the exclusive importer of Lavazza capsules and machines). The big challenge was to develop the Italian brand, build recognition and identity, in the minds of French professionals who are behaving as differently as the Italian ones.

Extraits

[...] We would like to suggest the organization of two events per defined area. We will divide France in 4 parts such as: North/East, North/West, South/East, and South/West in order to target the most strategic cities (Cannes, Nice, Lyon, Toulouse, Bordeaux, Nantes, Deauville, Paris, Strasbourg, and Lille) one events per season. Cost of one event: rent of the reception room in a restaurant 5000€ at least + waiters wages per day+ goods and gifts given to the attendee+ some extra costs= 7000€ How the event will be organized? [...]

[...] The fact that Eraclea is in collaboration with DES will be beneficial for the company. The customer will be more coefficients because they benefit of DES reputation and regional distribution network. It's a very important point in the decision making unit to have a supplier with a good quality service, and besides able to deliver the product on time. Eraclea has not yet competitors in the French market (they are the only one to provide such a wide range of chocolate products). [...]

[...] Strategic analysis tools, swot and pest SWOT analysis : assessment of internal and external situation of Eraclea and Deotto Espresso System in a context of launching drinking Chocolate, ice-creams and teas to promote and sell to the Hotels, Restaurants and Cafés French market. PEST analysis 1. PEST Analysis of environmental influences for the French Chocolate Market Economical factors *The Production World production of cocoa beans increased in 2005/06 to an all-time high of 3.6 million tons, up by more than from the 2004/05 cocoa season. [...]

[...] Indeed, the growth of meals taken out of the domicile remains one of the principal tendencies. Therefore, the sector activity had benefited of this evolution. Activity in volume of main distribution channels of coffee, tea and chocolate: Evolution of turnover in 2007 Cafés tabacs + Traditional Restaurants + Distribution automatic + Hotels + Collective Restoration + Quick restoration + The turnover growth path, except effect price, from hotels and restaurants will decelerate once again slightly in 2008. The activity of traditional restoration, preponderant in the area, will not reach high degree of activity performance, in spite of the rebound seen since 2006. [...]

[...] It represents a big market opportunity for Eraclea because each hotel belongs to a huge network. But, it is important to have different clients in order to keep the bargaining power and limit and spread the risk if a problem occurs with one of the hotel. Arguments for advantages This strategy fits very well with the company situation because it allows us a good positioning level with limited resources capabilities. Indeed, through the choice of this channel of distribution we can break into the market easily and at the same time build a strong brand image, emphasizes the high quality of the Eraclea products which represent its main competitive advantage. [...]