ENTRY OF INTO UNITED KINGTOM

CEREN SEVİNÇ
CANSU KELLECİ
GLOBAL MARKETING PROJECT
 HISTORY
• Kahve Dünyasi is a retail brand created by the
largest cocoa merchant in Turkey, Altınmarka.
• Altınmarka is cocoa provider for global brands
such as Ülker, Nestle and Kraft Food.
• Kahve Dünyası opened its first store in
Eminonu in 2004
• Kahve Dünyası has grown rapidly since it’s
foundation and has 98 sales points across
Turkey
• Their first branch in the UK was opened late
2011
 WHY EXPAND INTO THE UNITED KINGTOM?
• London is leading global city
• Similiar taste of Turkish cuisine
• Ultimate goal is to promote Turkish coffee to the world

Eda Terçin, Marketing Manager for Kahve Dünyası said that:

“Our store is on Piccadilly, where tourists who come to London from all over the
world stop by the most. For this reason, it is visited frequently by both the
English and the tourists. Thanks to this, we have the opportunity to have visitors
who come from various parts of the world to try sample our products and to get
their feedback.”
 TARGET COUNTRY
• Country and capital
Full name  United Kingdom of Great Britain and Northern Ireland 
Capital city  London
• Government
Government type  Parliamentary constitutional Monarch
Head of state  Queen Elizabeth 2
• Population   Approx. 63 million
• Currency Pound sterling (GBP)
• GDP per capita PPP $ 36,510.80
• Country area 243,610 km2
• Language English, Scots, Scottish Gaelic, Welsh, Irish and Cornish
 COUNTRY ANALYSIS-PESTEL
Great Britain is a constitutional monarchy. This means that the official head of the State is the
monarch (a queen) but her powers are limited by the constitution.

POLITICAL :
• Political stability
• Flexibility of constitution
• Tax Incentives

Hurdle:

• Relationship with EU
• High Tax Rates: 9th tax burden
 COUNTRY ANALYSIS-PESTEL
ECONOMIC:
• 6th largest national economy in the world
• London is the world's largest financial centre and
has the largest city GDP in Europe
o In 2014 UK GDP growth was 2.8%
o GDP per capita USD 45.653
o Low unemployment rate 5.3% (2014)

• Major income
o Nuclear reactors, boilers, mineral fuels, mineral oils
and products 
 COUNTRY ANALYSIS-PESTEL
SOCIAL: •800.000 British
•Population that drink coffee Daily
adults visit a
coffee shop at least
four times a week
• Cups consumed per day per person

•70 million cups

of coffee are
• Most popular type of coffee consumed everyday
in the UK

•Most branded
• How do you take your coffee? coffee shops “Costa
Coffe”
 COUNTRY ANALYSIS-PESTEL
SOCIAL:
•People spent more and more money on coffee in UK (Tea: £623m,
Coffee: £738m)
•Coffee drinking is a popular ‘’fashion’’ in UK

Emphasis on a healthy lifestyle

- High caffeine intake raises pulse rate
- In addition, there are also concerns rising cases of obesity,
especially among children. Many nutritionists recommend people
to reduce their consumption of chocolate and candy, which may
affect Kahve Dünyası sales in the future.
+ Coffee contains high levels of anti-oxidants which are beneficial
and may protect against diabetes, Parkinson’s and liver disease
 COUNTRY ANALYSIS-PESTEL
SOCIAL:

• High level of migration. Multicultural Environment

• Racial equality 
• Social security payments for disabled and unemployed
• National Health Service free at the point of entry
• Football
• Age ration
• 25-54 years: 41%
 COUNTRY ANALYSIS-PESTEL
TECHNOLOGICAL:
• Internet users: 85%
• The European Innovation Scoreboard
2008 ranks the UK one of the
innovation leaders (Above EU avg.)
• 23 Nobel prizes in the life sciences
• R&D tax credits are available for large
corporations and SMEs investing in
R&D
 COUNTRY ANALYSIS-PESTEL
TECHNOLOGICAL: •Better and cheaper coffee machines are available for
home usage: Turkish coffee pod
•Provide entertainment over wi-fi
•Attractive chocolate packaging and boxes
•Enabling mobile payments
•Internet users: 85%
•Online shopping: Kahve Dünyası offers online sales
through www.kahvedunyasi.com for those who don’t
have time for shopping due to their busy schedule and
those who live in cities where there are no Kahve
Dünyası stores but want to access Kahve Dünyası’s
products.
•Mobile application: Fortune Telling
 COUNTRY ANALYSIS-PESTEL
ENVIRONMENTAL: • The UK played a central role to support Kyoto Protocol
• The Energy Act 2011 made important change for both
homes and businesses. The act enable and secure low
carbon energy supplies

Reycycling: Biodegradable packaging is the key to reducing

waste
Energy: Reduce energy concumption %25 by 2014
Water: Include water-saving technology in machines
 COUNTRY ANALYSIS-PESTEL
High in business freedom: The legal system in the UK
LEGAL: is organized, transparent, and efficient.

According to the 2013 Index of Economic Freedom, the UK ranked 14th

in the world and 5th in Europe. The country scores high in
regulatory efficiency and open markets.

Tax evasion: The government has brought in general

tax-avoidance rules to make evasion more difficult in
the country in 2014

Employment laws: Working time, age

Food Safety: Food Standards Agency is monitoring

food hygiene for achieve higher food safety
 PORTER’S FIVE FORCES ANALYSIS
Threat of New Entrants (LOW) :
• Initial investment costs are high
• Need a lot of time to make the firm profitable
• High communication and advertising campaign
investments to promote a new brand
• Loyalty is very high in the existing coffee pod
market
• High brand awareness of existing competitors
• Norms and technical standards are required to
start a business
• Cultural barriers; although coffee consumption
is increasing, the main beverage in the UK is
Tea
PORTER’S FIVE FORCES ANALYSIS
Threat of Substitutes (HIGH) :
• Other beverages apart from Kahve
Dünyası coffee and chocolate– e.g. include
soda, fruit juice, smoothies, tea shops
• Pubs and bars can be highlighted as
substitute places for customers to meet
someone and spend their times 

o Cold pressed juices and tea places such

as Blend & Press and Postcard Teas
o Hangout places such as Hukka, Cross
Keys
 PORTER’S FIVE FORCES ANALYSIS
Bargaining Power of Suppliers (HIGH) :

• Kahve Dünyası is known for strong relations

with their suppliers
• Althought there are so many suppliers are
offering similar products at similar prices,
loyalty is very important
 PORTER’S FIVE FORCES ANALYSIS
Bargaining Power of Buyers (HIGH & LOW) :
• The bargaining power of buyers is high in
coffee industry because there are so many
selections of coffee shops that customers can
choose from. 

• However, product and concept are highly

differentiated for Kahve Dünyası. It focuses on
turkish coffee + handmade chocalate

• Consumers are generally more price-sensitive

when it comes to undifferentiated products
 PORTER’S FIVE FORCES ANALYSIS
Competitor Rivalry Within the Industry (HIGH & LOW):
There are hundreds of coffee shops in UK that enter the
market and have a product to offer, making it a
competitive industry.

• There are many of coffee shop in UK but it’s not

exatly the same concept

• Well known international brands are controlling the

market such as Stacbucks, Costa Coffee, Godiva

• Local coffee chains like Barista, Graze (Coffee and

chocolate house), Whittard
PRODUCT PORTFOLIO
 BCG MATRIX
Turkish Coffee & Coffee with Sahlep & Other Products
Turkish Delights
 ANSOFF GROWTH MATRIX
Turkish Coffee &
Coffee with Sahlep
& Turkish Delights
 ANSOFF GROWTH MATRIX
Other Products
 SWOT ANALYSIS
STRENGTHS:

s
• Kahve Dunyasi has something special to distinguish itself from the
others, Turkish hospitality

W
• The staff at Kahve Dunyasi personally treats their costumers on a
personal level
• Offering small chocolate samples to the guests on their table
• Table service, don’t have to wait on the queue
• Kahve Dunyası is suitable for long chats with the world design and
atmosphere, its rivals have different concept: take away
• Their rivals focus on coffee, Kahve dünyası focus on chocolate and coffee
at the same time, so Kahve Dünyası has product differentiation
 SWOT ANALYSIS
WEAKNESSES:
• Takes a long time to order

s
• Limited number of stores in London (Only

W
one store in Piccadilly)
• Lack of advertising on TV-public relations
activities
• New entry into UK market
 SWOT ANALYSIS

s W
OPPURTUNITIES:

• The increase coffee consumption regardless of tea domination

O
in the market
• Young population is increasingly and they are addicted to
coffee
• Online shopping: Kahve Dünyası offers online sales through
www.kahvedunyasi.com
 SWOT ANALYSIS

s W
THREATS:

O
• Another turkish rival might enter the market with cheaper

T
prices
• So many different chocolate shops in London with cheaper
prices
• Majority of people in the UK is not aware of the shops at all
• Consumers seeking healthy products
• Lack of Turkish coffee awareness among local people
 SEGMENTATION
Geographic Demographic Behavioral Labour
Metropolis and Big cities 15-50 ages People who want to Hangout for all
(London) spend their time in Kahve people
Dünyası

Rural areas (Norwich, 50 + People who just want to Business

Cardiff) drink coffee & chocolates professionals
&
White collar workers
 TARGET GROUP
• People who want to spend their time in Kahve Dünyası
o Housewives, students
• Hangout for all people
• Metropolis and big cities (London, Cambridge, Oxford)
• 15-50 ages
• Interest of Turkish people living in UK
 BRAND POSITINING

The positioning will focus on the products

• Kahve Dünyası offers delicious products with the highest quality raw
materials in a pleasant atmosphere, which makes consumers feel at
home with table service and delicious treats

Ice cream lovers Mastic Frappe with espresso Fondue

 BRAND POSITINING

• Kahve Dünyası created a unique concept by combining all these product

groups in one coffee shop experience, and as an innovative brand, it
always offers new products to consumers
 COMPETITIVE ADVANTAGE

We choose differentiation strategy

Unique design: Kahve Dünyası created a
unique concept by combining and
exibiting all these product groups in a
single shop
Culture: Kahve Dunyasi has something
special to distinguish from the others,
Turkish hospitality
Offers: Small chocolate samples for the
guests on their table, chocolate spoon for
free
 DIFFERENTIATION STRATEGY
• Offering small chocolate samples to the
guests on their table
• Table service, don’t have to wait on the
queue
• Kahve Dünyası is suitable for long chats
with the world design and atmosphere,
its rivals have different concept: take
away
• Kahve Dünyası prefers to serve coffee to
the customers with Ceramic Mug or
Plate
 MODE OF ENTRY
Foreign Direct Investment or Franchising?
Foreign Direct Investment due to: when businesses from one country invest in
businesses in another one

•Easy entrance into the market

•Transparent regulations
•No tariffs and quotas
•Higher profit potential
•Stable economy

The company does not offer franchises but instead manages all it will sale points
under three main categories: stores, corners and metro kiosks
MARKETING MIX
PRODUCT
• Traditional product with traditional names
• The company’s R&D team follows exhibitions,
developments and new products in the sector, and
adapts selected innovations to the Turkish preferences
before offering to the market.
• Besides Turkish coffee, which is the company’s most
important product, there are also unique and innovative
products such as Turkish coffee with milk or mastic and
even iced Turkish coffee
• All of the chocolates sold by Kahve Dünyası are produced
in its Altınmarka plant which won Europe’s Best
Chocolate Plant Award given by Candy Kettle in 2012.
MARKETING MIX STRATEGY
DIFFERENTIATION
•Better and cheaper coffee machines are available for
home usage: Turkish coffee pod

•Attractive chocolate packaging and boxes

•Enabling mobile payments

•Online shopping: Kahve Dünyası offers online sales

through www.kahvedunyasi.com for those who don’t
have time for shopping due to their busy schedule and
those who live in cities where there are no Kahve
Dünyası stores but want to access Kahve Dünyası’s
products.
 MARKETING MIX STRATEGY
DIFFERENTIATION
• Uses technology to promote the brand
Mobile application: Fortune Telling
 MARKETING MIX STRATEGY
DIFFERENTIATION
• Social Media Marketing: Facebook, Twitter
 MARKETING MIX
PRICE
• We will use demand strategy with a skimming
price strategy because our products is very quality
and have different sales options than the others
o Our price can be different based on the change in
customer responses • When determining the price, investments
o We can offer discount in special week on:
o Building
o Equipment and supplies
o Furniture for seating
o Employee wages
o The cost of each individual coffee and
chocolate based on supplies used
According to these:
o Research the prices of comparable products in
the area
 MARKETING MIX

PROMOTION
• Consumers are keen to recommend Kahve Dünyası by word - of – mouth as a
result of their pleasant experiences in Kahve Dünyası stores, which have used
below
• Social media (twitter, discount on dealzippy website, instagram, mobile
application)
• Offering free samples (turkish delights)
MARKETING MIX
 MARKETING MIX

• The company has already made its presence felt with a series of light-
hearted posters and slogans which refer to various  British
stereotypes – typically, ‘thank you for the underground – in return,
please accept our ground coffee’, and ‘thank you for  Trafalgar Square
– in return, please accept our chocolate square’. –
 MARKETING MIX
PLACE
Direct or Indirect
• Our company will directly sell the products without any franchise
Unique? Selective? or Intensive?
• We choose unique distribution strategy
• We will open shops in (Norwich, Cardiff)
• Kahve Dünyası opened with just a single shop; however, over time the
business will strive to expand.Expansion will begin in neighboring towns of
the original shop. Kahve Dünyası will slowly open more shops in other, larger
areas, perhaps in a city location.
 CONCLUSION
The case shows special interest in London
Kahve Dünyası’s product range and concept.
Besides being the first Turkish coffee chain
to become a brand and chain, it also stands
out as the first Turkish coffee brand to go
international.
The company sees great potential in London,
they plan to expand with more stores in
London in the coming term and then open
new stores in such global metropolises as
New York, Boston, and Vienna.
THANK YOU
 REFERENCES
http://www.superbrandsturkey.com/markalar/Kahve%20Dunyasi/kahvedunyasi-e
n.pdf
http://www.kahvedunyasi.co.uk/
http://www.caffecultureshow.com/library/Turkish-coffee-comes-to-London#sthas
h.bEXVLfw7.dpuf
http://
www.telegraph.co.uk/travel/destinations/europe/uk/london/9032229/Cafe-cultu
re-comes-to-London.html
http://www.tim.org.tr/
http://
www.theguardian.com/commentisfree/2011/nov/24/turkish-coffee-house-talk
http://www.hurriyet.com.tr/ekonomi/21711256.asp