OPPORTUNTIES AND THREATS Regarding entering the Canadian market successfully with Douwe Egbert’s new product: Grannie Annie’s hot chocolate milk. A SWOT-analysis (strength, weaknesses, opportunities, threats) is an analysis based on strength and weaknesses on one side, and opportunities and threats on the other side, choices are made. A SWOT-analysis can be used either internal or external. Both analyses together can be put together as a situational analysis. The outcome of this analysis can be the input of the SWOT-analysis. STRENGHTS Since there is a cold climate in Canada, the popularity of hot beverages is high compared to every other drink, leading to a high demand. – Canada’s stable economy – The good financial state of Douwe Egberts could be an advantage over the competitors. – The effective distribution strategies. – High quality product. – Good customer relationship management. – Canada-European Free Trade Association Free Trade Agreement, this agreement is aimed at eliminating all tariffs on goods. WEAKNESSES – Profitability may suffer as a result of strong competition in the Canadian market. Long distribution channels (especially to Canada) OPPORTUNITIES – Outplay other coffee brands by introducing special products like Grannie Annie’s. – Extend product line with other products for non-coffee drinkers – Build new coffee houses on strategic points – Create brand loyalty by making sure customers get the experience needed from drinking Grannie Annie’s – Keep developing new products for customers – Pick clear target group. (Starbucks aims for couples age 25-54 with children, who tend to spend more on non-alcoholic beverages outdoors) –
Douwe Egberts should not copy the strategy of competitor’s but create something unique. THREATS – Competition of businesses who are on the Canadian Market (Starbucks, Dunkin Donuts, Krispy Kreme, McDonalds, Burger King). – Lack of advertisement – Changing prices in Coffee market – By only entering the market with Grannie Annie’s you probably wont get very far. – Wrong target group Developments A development of the surroundings of the costumer will eventually turn into a need that customers will most likely get to have ease and more user-friendly coffee machines, packaging and more.
Next to this, sustainability is getting more and more important to customers. DE is known for their sustainability and fairness regarding coffee bean farmers. This can be used for Grannie Annie’s too, regarding Cacao farmers. Also, the sustainability of transport is important and has to be done as carefully as possible. DE Looks forward to train their own coffee and cacao farmers so that the quality can be guaranteed. Also, sustainability can be higher when DE trains own farmers.
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