Critical Market

Characteristics/Factors

FACTOR RELEVANCE
WEIGHTS (Weights chosen out
of 5)

Sumproduct function to select

the country with the highest
sumproduct value.
C -CULTURAL
Coffee Culture

3.5

Religion

Language

Home bias / pref

Traditional influence on personal

care habits

A - ADMINSITRATIVE
(POLITICAL AND LEGAL
ENVIRONMENT FACTORS)

Rule of Law

2.5

Govt Effectiveness

2.5

Political Stability

2.5

Regulatory Quality

2.5

No Corruption

2.5

G - GEOGRAPHIC &
DEMOGRAPHIC
Temperature

Tourist Spot

Age

Gender

2.5

E-ECONOMICS

Growth rate

PPP

Infrastructure Development

3.5

Competition

Rationale for Rating

Country: Finland
Weights
89.92

It is very important as it derives the

coffee culture. In the host drinks
industry, there is a significant
preference for Tea also. So, success
of Caffe Vergnano would depend on
coffee culture.

1.5

Low. The weight of religions that do

not drink coffee is proportionally
low compared to the global
population.

Language can create packaging

complications

The preference for the real quality

of the home grown or foreign(here
Italian) coffee.

2.5

Stringent legal and regulatory

compliance standards.
Adherence with Local laws and
regulations becomes mandatory.

1.93

The effectiveness of the govt in

terms of promotion of trade and
welcoming foreign investors

2.17

Risk of political instability may not 1.36

be a deal breaker, but it does
impact significantly on the
revenues. Therefore, firms abstain
from conducting business in
countries with unstable
government.
Coffee making and technological
know-how of Caffe Vergnano is
critical for its continuing
dominance.Since, Caffe Vergnano
has considerable expertise in
coffee processing and machine
design, this intelluctual property
can be leveraged for Brand
Positioning as well as attracting
local francise players, local
suppliers and agents.

1.85

Medium; Efficient business climate 2.19

eliminates red-tapism and
facilitates the business process.

Coffee is primarily consumed more 4

in countries which have a strong
winter season
Countries which are major tourist
attractions see a bulge in the
consumption of coffee in Caf's

Coffee consumption in Caf's are

done primarily by young people

1.5

Men consume more coffee than

females

1.5

GDP rate will determine PDI

increase and thus more
discretionary spending

-0.11

Discretionary income is very

important for the consumption of
coffee in Caf's

1.5

The development of transport is

1
very essential for distribution of
goods and services, Simultaneously
since coffee would be exported
ports are also essential
Competition not only decides the
entry barriers but also tells a lot
about the market potential

2.5

Country: Finland

Country: Canada
Rationale

Weights
104.89

88% of the coffee consumed is in

homes

NA

No ethnic or cultural bias in coffee

consumption.

Strong bias towards light coffee

which Caf Verganno does not
specialise in

Fika

1.5

Finland is one of the best in terms 1.74

of employing laws in their country,
thus crimes are at a bare minimum

Finland does not have much

industry of their own and being a
tourist destination seek more and
more global brands

1.77

The presence of many minorities

have lead to a political unstability
in the region for a while

1.03

Strong IPR acts protect the

company's technical know-how

1.71

Scandinavian countries are known

for their less corruption and
bureaucracy

1.87

Finland has an average

temperature of 12 C

Country attract 6 million tourists

every year

Median age is 42.4 years with a

population close to 5.5 million

2.5

Sex ratio is 96 males/100 females

The growth rate has declined

2.53
tremendously for the scandinavian
economy
PPP of Finland is $38,569

Poor rail and road transport

2
coupled with very few important
ports thus growth of Caf Verganno
can be hindered

Competitors include - Coffee

2
House, Roberts Coffee, Swedish
Waynes Coffee, Starbucks Coffee.

Country: Canada
Rationale

67% coffee consumed is in homes

NA

Product specifications and

information has to be mentioned in
both English and French
Foreign brands are present
throughout the market with strong
preference towards roasted coffee
which is their speciality
No such development

A huge immigrant population has

lead to a decline in terms of rule of
law

Canada have some rules primarily

because of different cultures living
in the country, to keep harmony
and promoting the local industry
With immigrants exceeding the
population of indigineous
population, Canada have become
politically unstable

Strong IPR acts protect the

company's technical know-how

Corruption percieveness has

increased over the years

Canada has an average temerature

of 11.5
Canada attracts 16 million tourists
every year

Median age is 39 years with a

population close to 33 million
Sex ratio is 98 males/100 females

Canada is one of the fastest

frowing countries in the world
PPP of Canada is $42,816

Road and Rail development is good

and presence of a lot of important
ports on both the East and West
coast

Competitors include - Tim Horton,

McCaf, Starbucks, Seattle Best
Coffee, Van Boutte, Second Cup
Coffee co.