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Executive Summary

First of all, completing this assignment is interesting and challenging task. I need to choose two

different countries and it has to be one from South America continent and the other one is from

Europe. The reason I chose these 2 countries is because both countries have solid history of

coffee. This assignment has taught and widens my economic knowledge of these selected two

countries which are Brazil and Italy. Both countries are from different continent where a lot of

differences in terms of culture, government, and economics. After completing this assignment, I

also managed to learn deeply on what are PESTLE Analysis as well as the SWOT Analysis. It

gives me at least some idea on how to globalize my business in future (if I have one).

The Koff Maker story began with a simple idea which is; enable anyone to create a perfect cup

of espresso coffee just like a skilled barista. Koff Maker is a brand name of Melium Group based

in Kuala Lumpur, Malaysia and counts over 90 employees. Koff Maker machines brew espresso

from coffee capsules, a type of pre-appointed single-use container of ground coffee and

flavoring.

In 2007, Melium Group invented, patented, and introduced the Koff Maker system to the

business market in Malaysia. It was very successful and not long after that, it only takes 3 years

to spread the system across Asia Pacific region. Koff Maker can be purchased by mail order or

any other appliance stores.

Currently, Helium Group plans to expand their business to South America and Europe in order to

generate more profit and finally monopolize the coffee maker industry.

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Brazil PESTLE Analysis

In order to be sure that Brazil is a potential country for future investments, we must look and

analyze at the following key factors: politics, economics, social, technological, environment, and

legal.

Political

Basically, political factor are used to determine to what extent a government may influence the

economy or certain industry. For example, a government may enforce a new tax or duty due to

which entire revenue generating structures of organizations might change. Besides that, political

factor include area such as environment law, trade restrictions, tariffs, and as well as political

stability.

According to Colitt (2010), Brazilspresidential election in October looks less risky to investors

compared to any other in the last quarter of a century. It was reported that the economy has

bounce back from the global financial crisis. In this case, there are more and more foreign

companies wishing to invest there. The Brazilian government is willing to help local

entrepreneurs with their small and medium sized business thus this stimulation will increase the

customers power. This purchasing power will however prove to be an important factorof

success to Koff Maker in Brazil.

Besides that, Brazilian government has long term plan to improve the business environment of

the country. For example, by upgrading the efficiency of public transport and safety of the

country.

Brazil is also well known of its coffee production. According to SASI Group and Newman

(2006), Brazil produces 38 million of 60-kg bags of coffee bean annually and it is one of the

biggest coffee producers in the world. Therefore, the Brazilian government is encouraging

foreign investor to operate business related to coffee as a way to increase consumption and raise

demand for its coffee beans.

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Economics

Economics factor are determinants of an economys performance that directly impacts a

company and have resonating long term effects. For example, a rise in the inflation rate would

affect the way companiesprice their products and services. In this case, it would affect

consumer purchasing power and change in demand and supply for that economy. Economic

factors include economic growth, interest rates, exchange rates, and the inflation rate.

Brazil is one of the countries in the new emerging market economy together with Russia, India,

and China. These countries are also called as the BRIC countries or alternatively as the Big

Four.

Currently, Brazil is the seventh largest economy in the world and the largest in Latin America.

According to Ricardo (n.d), the gross domestic product (GDP) in Brazil increased 0.60% in the

first quarter of 2013 compared to the previous quarter.

Brazil GDP Growth Rate

Source: Duarte Ricardo (2013)

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The rise in GDP could lead to an increase in real income per head of population. Besides that, it

also stimulates more job opportunity to people in Brazil. A stronger economy will help to

persuade consumer to make major purchases. Koff Maker will definitely make an impact from

this.

The current fiscal and monetary policies designed by the Brazilian government are to stabilize

the public debt levels, maintain the current account surplus, and meet inflation target. Brazils

ability to control inflation has resulted in renewed confidence in the Brazilian economy and

financial markets. As the Brazilian economy continues to boom, while the Western markets

completely saturated, it is a good opportunity to expand to this promising market.

The Brazilian coffee consumption rate rose 0.13% within the last 12 months.

Internal consumption of coffee in Brazil

Source: Research area of ABIC (20062007)

Although Brazil is the second biggest coffee consumer, following the United States, Brazil has

high importation tax which could affect raw material imports.

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Social

These factors examine the social environment of the market and measure element like cultural

trends, demographics, population analytics etc. For example, buying trends in Western countries

is high during Christmas season.

According to the World Population Data Sheet (2012), Brazil is the 5th

most populous country

which has 194 millions populations.

Coffee drinking is a rising trend, particularly owing to the growing fashion to socialize while

drinking coffee.

93% of Brazilian population is regular coffee consumers according to Brazilian Coffee Industry

Association. Brazils largest city, Sao Paulo, where the level of education tends to be much

higher compared to other regions of Brazil. It causes the income distribution to be extremely

uneven where cities like Rio de Janeiro, Sao Paulo are very rich while the northern region of

Brazil is very poor.

In most Brazilian cities, working hours are from 8.30am to 5.00pm with an hour or two in the

middle for lunch. Brazilian loves socializing and spending time with each other. This is often

done on lunch or mid-morning break. Normally, coffee is served during break and as well as

during a meeting.

The consumerism in Brazil is relatively high therefore; there is a demand for higher quality

products especially the Koff Maker.

Brazilian culture tends to be informal, but Brazilian are quite fashion conscious. Dress smartly

and conservatively is an important factor for them.

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Technology

Technology factor is being defined as innovations in technology that may or could affect the

operations of the industry and market. Technology factors include research and development

activity, technology incentive, and rate of technological change. They can determine production

efficiency level and outsourcing decisions.

Today, Brazil ranks 17th

in the world in relevant scientific production of petroleum in deep

water, aeronautical industry, farming industry, telecommunications, and as well as software

design. (source: Brazil Government Portal)

Between 1985 and 2006, Brazilian agricultural production grew by 77%. This factor lead Brazil

emerged as a major international agricultural exporter. Creating new technologies are designed

to increase productivity in agriculture. According to Rada and Valdes (2012), Brazils

agricultural was boosted by sustained public investments in science and technology which lead

to a stream of new technologies.

According to the Brazilian government, 1.5% of the Gross national Product (GNP) will be

invested in Science and Technology in the next four years. Besides that, the federal government

has also been increasing the concession of grants for researchers from 97 thousands grant to 170

thousands by 2015.

Brazil may be the home of the largest river but it still doesnt host its internet namesake:

Amazon.com. The worlds largest e-commerce brand retail operations are yet to be available but

it is on its way. According to Amazon.com, the website has announced plans to start selling

digital products and the Kindle later this year in Brazil. This could be a game-changer and Koff

Maker could sell its products using e-commerce.

As the current technologies available in Brazil and organized future planning, no doubt Brazil

will be the agriculture power house in the America region where more coffee will be produced

thus Koff Maker will be in demand.

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Legal

Legal factors include employment law, consumer law, and health and safety law. There are

certain laws that affect the business, its cost, and the demand for its products.

Brazil is highly bureaucratic country. Operating any sort of business in Brazil requires large

amount of paperwork and lengthy process. As Sao Paulo is the largest business centre in Brazil,

it ranks 119 out of 155 in ease of operating business. Starting a business in state of Minas Gerais

and Rio Grande de Sul is much more easily compared to Sao Paulo, Ceara, and Rio de Janeiro. It

takes from 19 days in Minas Gerais to start a business compared to 152 days in Sao Paulo.

(source: Department of Foreign Affairs and Trade)

Despite having difficulties in obtaining license to operate business in Brazil, the Brazilian

government attracts foreign investors by offering tax incentives. (source:ApexBrasil: Brazilian

Trade and Investment Promotion Agency). This could be an advantage to Koff Maker as we

are considered as foreign investor. Capital gains earned by local resident entities are taxed at a

higher rate than the capital gains of non-resident. Besides that, foreign investors are exempted

from withholding income tax due on the FIP (Participation Investment Fund).

Although foreign investors can invest in most of the industry in Brazil, but there are several

industry that foreign investors are restricted. For example, the aerospace industry, airlines,

mining, and nuclear energy.

There are specific laws on regulating pricing model where we need to keep an eye on especially

promoting sales. And not forgotten, every enterprise is required to pay extra (13th

bonus) salary

to its employees.

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Environment

Environmental factors include ecological and environmental aspects such as weather and

climate change. This aspect is crucial for certain industry such as farming, tourism, agriculture

etc.

Brazils climate can be characterized by five general climatic regions which are equatorial,

tropical, semi-arid, highland tropical, and subtropical. Temperature in Brazil is extremely hot and

humid. The average temperature in Northeastern Brazil is the driest and hottest region in the

country. Coffee plantations are mainly located in the southeastern states of Minas Gerais, Sao

Paulo, and Parana because the climate provides ideal growing conditions.

According to the guidelines set out in the Kyoto Protocol, Brazil is one of the largest emitters of

greenhouse gasses causes from deforestation. Brazil set a target of reducing emissions by 36.1%-

38.9% below business as usual by 2017. Apparently, by 2010, Brazil reduced deforestation by as

much as 70%. Policies for protecting the environment such as stopping deforestation have

drastically reducing emission.

Official Amazon Deforestation Figure

Source: Mongabay News (2009)

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In Brazil, coffee hulling is accomplished by using the dry mechanical process which generates

far lesser harmful environment effects than those in the wet process.

Italy PESTLE Analysis

In order to be sure that Italy is a potential country for future investments, we must look and

analyze at the following key factors: politics, economics, social, technological, environment, and

legal.

Political

According to BBC news (2012), Italy is well known of its insecure political life and has had

several dozen of governments since the end of World War 2. From the political point of view,

Italy is an ideal country to export and import products because it has good international

relationship especially with the EU countries. Unfortunately, Koff Maker belongs to company

which is not located in Europe.

On 2013, Italy finally forming a new government two months after its election says ABC News.

Taking two months for a new government after election is not a good sign of politically stable.

Unstable government could lead to frequently changes in terms and condition of foreigninvestors and it somehow could affect them.

Under the EU New Approach to Technical Harmonisation, certain products such as machinery

and electrical equipments are required to meet specific quality standards. Quality of products

must meet the requirement before even thinking to import to Italy. Import duties into EU

countries are subject to import tariffs. The standard sales tax rate for Italy is 21% which is

relatively high. High import duties could lead Koff Maker to struggle in the beginning of the

business and plenty of time needed for return of investment.

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Economics

According to the International Monetary Fund and the World Bank, Italy was the 9th largest

economy in 2012 in terms of nominal GDP. However, GDP in Italy contracted 0.6% in the first

quarter of 2013 as shown on the graph below.

Italy GDP Growth Rate

(Source: Joana Taborda)

Decrease in GDP would lead to lower productivity and create lower profit margin for

corporation. Besides that, unemployment rate will be increased and basically people in that

country are poor. This factor could lead unstable in economic and Koff Maker would face risk in

investing in Italy.

According to Zampano (2013) inflation rate in Italy increased to 1.2% from a year earlier. After

inflation, you cant buy the same goods at the same price as it could beforehand. Thus, it makes

thing more expensive and consumers are less likely to spend. Koff Maker would face difficulty

in selling it in Italy.

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Social

Have you wondered where these word such Cappuccino, Latte, and Espresso came from? They

are actually from Italy.

According to the World Population Data Sheet 2012, Italy has 60.9 million of population in

2012.

About 68% of Italian population is classified as urban according to CIA World Factbook (2010).

According to OECD (2009), the largest conurbations are Milan with 7.4 million of people.

Italy is one of the most important countries in terms of the consumption of espresso coffee. It is

also being recognized as the country of bars. As Italy has a lot of espresso drinker, Koff Maker

could penetrate the market by targeting frequent espresso drinker.

As there is a say, if you dont want to be taker for a tourist in Italy, you should drink coffee as

what the locals do. According to Demetri (n.d), coffee is the national breakfast in Italy. Not all

coffee drinking takes place at the bar. For example, morning coffee is often made at home using

coffee machine. Thus, this factor could make Koff Maker to be peoples choice of coffee maker

in Italy.

Language spoken in Italy mostly is Italian language. English alone is not enough to interact with

people there are not fluent in English. Therefore, before venture business to Italy, Italian

language is compulsory to learn.

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Technology

For the past years, Italy has been increasing expenditure in R&D in order to align Italy with other

European countries says Aniello Musella, Italian Trade Commissioner. From 2004 to 2008,

R&D investment performed by private companies, non-profit organization and universities

increased from 15,252 million to 19,304 million. This is a good sign for foreign investors as this

country is willing to improve its technology in order to improve the country.

Informational and communication technology (ICT) only exists in higher percentage in the north

Italy rather than south. This is because of geographical and culture differences.

According to Pfanner (2012), internet usage in Italy is low compared to other developed nations.

Low internet users cause difficulty in selling products using e-commerce. E-commerce plays an

important role in selling and advertising products. In this case, Koff Maker will encounter

difficulty in selling products and spreading awareness to people in Italy.

In 2008, the amount of research and development personnel was only 0.94% of the labour force.

This is even lower than the EU average which was 1.03% according to Eurostat R&D (2010).

However, Italy have started focuses on developing the scientific base on the following areas such

as improving the technological level of the economic system, public welfare, promoting the

growth of human capital, and sustaining the participation of national science into other

international research programs.

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Legal

According to Mingardi and Stagnarp (2012), in Italy, investors are hindered by the obscurity of

legal provisions and uncertainty of laws. For example, inefficiency of the judiciary and

corruption. Whenever a firm try to operate in Italy, it is almost impossible to receive clear

answer weather a yes or a no.

Besides that, Italy also has a reputation for high taxes on business. According to Eurostat, the

implicit tax rate on corporate income is as high as 35%. This could force foreign investor to

avoid investing in Italy.

Non-EU countries have difficulty in obtaining license as special license is needed to start a

business in Italy. According to Giampaolo Galli, the general director of Confindustria, Italys

main business lobby, just to start business, you have to deal with between 10-20 authorities. No

commitment should be made until permission has been granted. License is important in operating

a business; therefore difficulty in obtaining it would make foreign investors to think twice before

investing.

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Environment

Italy experiences a Mediterranean climate with its hot and cool, wet winters. Winters in Italy are

cool and humid in the north and the mountain zone. Summer can be quite hot mainly in the south

of peninsula and temperature could reach up to 40 Celsius sometimes.

The Mediterranean climate in Italy has often local variations. Surrounded by warm seas and with

mountains close by, the coast always has a breeze; mountain areas are usually cooler with clear

sunny skies, but sometimes local showers or thunderstorms in the afternoon. Hot air rising from

the sea can cause heavyThunderstorms especially in early fall, but these bring often the only

summer rain that rapidly evaporates.

http://www.weatheronline.co.uk/cgi-bin/klstatistic?STARTMONAT=JAN&STARTJAHR=1997&ENDMONAT=DEZ&ENDJAHR=2002&ART=PRE&WMO=16242&STARTJAHR=1997&ENDJAHR=2002&STARTMONAT=JAN&ENDMONAT=DEZ&ART=TMX&PROVIDER=anwendung&MOD=tabhttp://www.weatheronline.co.uk/cgi-bin/klstatistic?STARTMONAT=JAN&STARTJAHR=1997&ENDMONAT=DEZ&ENDJAHR=2002&ART=PRE&WMO=16242&STARTJAHR=1997&ENDJAHR=2002&STARTMONAT=JAN&ENDMONAT=DEZ&ART=TMX&PROVIDER=anwendung&MOD=tab

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Opportunities and Threat of Brazil

Opportunities

Some of the reasons that make Brazil one of the worlds best investment opportunities include

stable economy, clean energetic market, and large domestic market. Brazil currently ranked sixth

largest economy are predicted to rank 5th

in the next decade.

A major city like Sao Paulo, consumption of coffee trend is developing which is associated with

elite or cultured lifestyle. Even a short break, coffees are usually served. As Brazil is one of the

largest coffee producers in the world, I believe it has potential for producing more quality coffee

than it is currently doing. The more coffee produced the more consumption of coffee therefore

the demand of Koff Maker will increase as well.

Besides that, the Brazilian government plays a major role in creating job opportunities therefore

increasing the availability of their workforce. The government not only provides lowered interest

rate but also tax incentives to foreign investors.

In summary, Brazil is changing from a business only industry to an industry that also takes into

account the quality as a value for the Brazilian consumer. Although we know the fact that Brazil

has many coffee maker companies that has been there before this, but the large population leaves

room for Koff Maker to be equally welcomed.

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Threat

Although Brazil has large consumer on coffee but it does not hinder foreign investor to face

threat in operating business.

Majority of Brazilian instead of having culture of putting value to the quality of the coffee, they

care more about the price. Furthermore, price appears as a threat if price is higher than

competitors prices. This will affect Koff Maker on the pricing where it is compulsory for Koff

Maker to lower the price otherwise people might as well go to competitor.

Some places in Brazil especially rural places, people there tend to have lower education level.

This causes shortage of qualified man power therefore Melium has to spend money in training its

employees which is increasing cost.

Besides coffee, Brazil has substitute products such as teas, fruit juice, etc. There are probability

people would change their preferences to these substitute product which causes the consumption

of coffee to be lower than expected. Therefore, Koff Maker by that time is no more on demand.

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Opportunities and Threats of Italy

Opportunities

Italy is one of the most popular tourism spot in the world with its Pisa Tower, The Coliseum, and

not forgotten luxurious fashion brand. People who usually visit Italy are high income earner thus

they can afford to buy anything including coffee maker by Koff Maker.

According to World Tourism Organization, Italy currently ranked 5th

most visited country in the

world. Instead of only targeting the population in Italy, Koff Maker can be targeted on tourist as

well.

Whenever more and more people visit to a particular country, it will automatically attract

investors to invest in that country. The more people in that country to more probability the sales

on a product would happen.

Majority of the people in Italy drinks coffee ever since they are young thus they are equipped

with wide coffee information. This makes Melium easier to hire workers where no training are

required and at the same time it saves cost.

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Threat

Investing in Italy is normally a no for investor who would not want to take risk due to the threats.

It is very risky to invest here as it could not guarantee return on investment.

There are several threats on investing in Italy. The first threat is inequality economic between

regions. For example, a product can be targeted in a particular region but not all due to difference

in economic.

Secondly, the unstable government and politics in Italy. Unstable politic could cause the

economic to go downwards. Frequently changes in government could also affect investors

because frequent changes of terms and conditions. For example, the previous government

charges low on import tax but the newly appointed government increases the import tax.

Last but not least, obscurity of legal provision is considered one of the threats that foreign

investors worry of. Sometime, investors have to wait for several months in order to get

confirmation from the Italian authorities. There were cases where foreign investors paid huge

amount of application fees but in the end, it was rejected by the authority.

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Justification for Selection of Chosen Country

I would personally choose Brazil as country to invest in. There are several factors which make

me choose this country over Italy.

Firstly, is the politically stable in Brazil compared to Italy which had dozens of new government

ever since the World War 2. On top of that, politically stable could boast the economics of the

country and lower the rate of unemployment. A strong economy could persuade consumer to

make major purchase. Whereas in Italy, economic is not strong and rate of unemployment

increasing year by year.

Secondly, consumption of coffee in Brazil is rising year by year and it has become a trend when

socializing. In future, I believe coffee will be available everywhere and Koff Maker would be the

most wanted coffee maker in Brazil.

Thirdly, the Brazilian government is willing to spend on technology and research and

development. In future, I believe that the technology in Brazil will be highly advance where an

individual can purchase Koff Maker in a vending machine.

Last but not least, the Brazilian government shows its appreciation to foreign investor by giving

incentives on tax. Besides that, the government charges low tax to foreign investor compared to

its own local investor. This could make foreign investor feel comfortable operating business in

Brazil.

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Evaluation of and Selection of Market Entry Strategy

Market entry is activities that associated with bringing a product or service to a targeted market.

A firm which plans to enter a foreign market must make a strategic decision on which entry

mode to use for that particular market. The four most common modes of foreign market entry are

exporting, licensing, joint venture, and sole venture.

I would personally select joint venture as market entry for Koff Maker. The reason I chose joint

venture with the Brazilian locals is because I will be able to obtain additional financial resources

from business partner. Since a business that has larger funds to facilitate the production and

operation of products, it facilitates growth.

Joint venture could lessen the risk of losing big amount of money because money is divided to

both parties. At least someone shares the responsibility with you incase end up in deep trouble.

Aside from economic territory, joint venture has the ability to enable us to build business

relationship with viral contact. Building contacts is important for Koff Maker as we are

venturing into Brazilian market. Getting known the locals over there could give us access to a lot

of business opportunity.

Last but not least, joint venture could widen economic scope quickly without spending too much

money and waiting for a long time.

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Targeting and Positioning in the Chosen Country

Targeting

Target market for Koff Maker is for higher learning education student, working class, and senior

citizen. This is because coffees are normally consumed by these groups of people. For higher

learning education students, they usually drink coffee whenever they are burning the midnight

oil. Coffee contains caffeine which could make them stay awake in the middle of the night. For

working class in Brazil, they usually consume coffee for breakfast, socializing, and even

meeting. Consuming coffee in Brazil is now a trend for working class to socialize instead of

alcohol beverage. For senior citizen, they prefer to make coffee at home rather than going out to

congested area to purchase it. Therefore, Koff Maker would be suitable for them.

Positioning

Koff Maker position itself as a mid mid-range product. Itspriced between USD200-USD300.

Koff Maker is specially catered to everyone including young adults to senior citizen and

everyone who can afford it. It is also specially catered for family purposes but not for business

purposes. This is because Koff Maker is not suitable for heavy usage. Koff Maker can be used

during house party or even picnic. It is also specially designed with user friendly button. Even

senior citizen can operate it easily without any hassle. For example, Koff Maker only has fewbuttons and few important functions that could meet basic requirement of coffee lovers.

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Marketing Strategies (The 4 Ps)

Product

At the moment, Melium Group only manufactures coffee maker called Koff Maker. Koff Maker

measures 10.8 x 12.4 x 16.5 inches in dimension and 9 pounds in weight. This coffee machine is

meant to be light as owner can bring it anywhere without any hassle. Besides that, Koff Maker

also comes with several special features. For example, indicators to tell you when the water is

hot enough, when more water should be added and when the machine should be cleaned. Apart

from that, Koff Maker is user friendly as it only comes with few buttons and functions that could

meet basic requirement of coffee lovers. Koff Maker also comes with 3 years warranty. In my

opinion, besides selling coffee maker, Melium Group should sell coffee beans everything related

to coffee. This is because a coffee maker needs coffee bean in order to make a cup of coffee. By

offering multiple products, more profit can be gained.

Price

The price of Koff Maker is ranged between USD200-USD500. Basically, the price being set is

meant to suit the value of the coffee maker. Koff Maker is classified as mid-range coffee maker.

Despite the low price being tagged on the coffee maker, it does not means it is low quality.

Customer could enjoy 5 star features like any high end coffee maker. As the price is affordable, Ibelieve people from students to working class and senior citizen can buy this product. Although

the price is USD15 higher than theCuisinart DGB-625BC Grind-and -Brew 12-Cup

Automatic Coffeemaker which is also one of our competitors, Koff Maker should not be

affected by this because of the 5 star features and extended 3 years warranty provided. In my

opinion, just to make the price look cheaper than competitor, I suggest that Koff Maker give out

freebies such as coffee cup and even extra coffee jug to customer for every purchase.

http://www.bestcommercialcoffeemakers.com/cuisinart-dgb-625bc-grind-and-brew-12-cup-automatic-coffeemaker-brushed-metal-%e2%80%93-wake-up-and-smell-the-coffeehttp://www.bestcommercialcoffeemakers.com/cuisinart-dgb-625bc-grind-and-brew-12-cup-automatic-coffeemaker-brushed-metal-%e2%80%93-wake-up-and-smell-the-coffeehttp://www.bestcommercialcoffeemakers.com/cuisinart-dgb-625bc-grind-and-brew-12-cup-automatic-coffeemaker-brushed-metal-%e2%80%93-wake-up-and-smell-the-coffeehttp://www.bestcommercialcoffeemakers.com/cuisinart-dgb-625bc-grind-and-brew-12-cup-automatic-coffeemaker-brushed-metal-%e2%80%93-wake-up-and-smell-the-coffee

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Place

Koff Maker will be only available in highly populated cities of Brazil such as Sao Paulo and Rio

de Janeiro. Besides having several physical shops in the cities, Koff Maker will be sold in several

high traffic places such as biggest hypermarket in Brazil, Extra hypermarket, Carrefour, and

Wal-Mart. Not forgotten, Amazon.com retail operation will be available in Brazil soon, Koff

Maker will definitely be sold on the internet simply because it is most accessible, lowest cost,

and least amount of investment required. Koff Maker will be available in book store as well.

Books and coffee is a good combination because scientifically proven that coffee could release

stress. There are some people also prefer to drink coffee while reading books. The correlation

between number of selling channels and revenue is significant because the more places where

customers can find you, the more sales you will get.

Promotion

Promotion is important in every business. Good promotion strategy could help spread massive

awareness to people. Melium Group will use several promotion strategies to promote Koff

Maker. The first method is setting up road show booth in coffee bars, caf, and even in

bookshops so that people could test the coffee maker. The reason behind choosing these places is

because the probability of people drinks coffee is high. Once tested, if customers are satisfied

with the products, they can make immediate purchase as well. Secondly, advertise using media.

Although pay for an ad placement in media such as television, radio, newspapers, and magazine

is expensive, it could easily spread awareness because these media tools are constantly exposed

to daily life of an individual. Last but not least, usage of evolution of the Internet and related

technologies. Email marketing, online advertising and mobile advertising have all become

common components of promotional campaigns.These methods are often relatively affordablefor small businesses and offer direct connections to tech-savvy consumers who spend significant

time online.

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Implementation and Control

Task Description Person Responsible Completion Date

1 Liaising and networking with arange of stakeholders including,

colleagues, suppliers and

partner organizations.

Write proposal as needed toassist organization in

determining its long and short

term goal.

Darren Foo Heng Jin

(General Manager of

Melium Group)

12 July 2014

2 Organizing events such asconferences, seminars,

receptions and exhibitions.

Advertise product usingFacebook, Twitter, and Google.

Advertise product using mediaplatform such as newspaper,

television, and magazines.

Dominic Rodriguez(Marketing Manager)

29 July 2014

3 Employee recruitment. Employee training and

development.

Neymar Santiago

(Human Resource)

13 July 2014

4 Preparation of budget. Provide recommendation

regarding long and short term

debt.

Farnando Gomez

(Financial

Management)

1 July 2014

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Advertising Budget

Activity (Advertisement Campaign) Budget

Road Shows and Exhibition USD3500

Media Advertisement

Television

Radio

Newspaper

Magazines

USD3000

USD1800

USD800

USD 750

Social Network and Internet Advertisement

Facebook

Youtube

Mobile

Email

USD1300

USD1500

USD550

USD200

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Budget

Month Sales of

Koff

Maker

Advance

(UNIT)

Sales of

Koff

Maker

Deluxe

(UNIT)

Price of

Koff

Maker

Advance

(USD)

Price of

Koff

Maker

Deluxe

(USD)

Sales

Value

(USD)

Total Sales

(USD)

July 43 36 200 300 19400 19400

August 55 42 200 300 23600 43000

September 70 50 200 300 29000 72000

October 96 61 200 300 37500 109500

November 80 51 200 300 31300 140800December 56 88 200 300 37600 178400

January 44 60 200 300 26800 205200

February 99 78 200 300 43200 248400

March 60 78 200 300 35400 283800

April 130 100 200 300 56000 339800

May 145 99 200 300 58700 398500

June 143 178 200 300 82000 480500

TOTAL 480500

8/13/2019 Koff

27/28

27

Harvard Referencing

1. BBC News. 2013.Italy profile. [online] Available at: http://www.bbc.co.uk/news/world-europe-17433142 [Accessed: 2 Jul 2013].

2. Brazil Government Portal. 2010.Investing in Brazil. [online] Available at:http://www.brasil.gov.br/para/invest/investing-in-brazil/technology-and-

innovation/br_model1?set_language=en [Accessed: 5 Jul 2013].

3. Cafeicultura. 2008.INDICATORS OF THE COFFEE INDUSTRY IN BRAZIL. [online]Available at: http://www.revistacafeicultura.com.br/index.php?mat=15755 [Accessed: 1

Jul 2013].

4. Communicaid. 2012.Doing Business in Brazil | Brazilian Social and Business Culture.[online] Available at: http://www.communicaid.com/access/pdf/library/culture/doing-

business-in/Doing%20Business%20in%20Brazil.pdf [Accessed: 1st Jul 2013].

5. Demetri, J. n.d.. The World of Italian Coffee. [online] Available at:http://www.lifeinitaly.com/food/coffee.asp [Accessed: 2 Jul 2013].

6. Diaz, K. 2009. Global Coffee industry: pitfalls, successes and future perspectives.Available at:

http://www.worldmapper.org/posters/worldmapper_1037_coffee_production_ver5.pdf

[Accessed: 2nd July 2013].

7.Fratzscher, M. and Stracca, L. 2009. Italys Politics and Financial Market Under the

LIRA and Euro. 1064 Available at:

http://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1064.pdf [Accessed: 2nd July 2013].

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8 Group, S. and Newman, M. 2006. Coffee Production. [online] Available at:http://www.worldmapper.org/posters/worldmapper_1037_coffee_production_ver5.pdf

[Accessed: 5 Jul 2013].

9 Mongabay News. 2009.Deforestation in the Brazil Amazon. [online] Available at:http://news.mongabay.com/2009/1113-brazil_amazon_deforestation.html [Accessed: 3

Jul 2013].

10Nasdaq. 2013.Inflation Rises Slightly in Italy. [online] Available at:http://www.nasdaq.com/article/inflation-rises-slightly-in-italy-20130531-00065

[Accessed: 1 Jul 2013].

11 Rada, N. and Valdes, C. 2012.Policy, Technology, and Ef? ciency of BrazilianAgriculture. [online] Available at:

http://www.ers.usda.gov/media/849059/err137_reportsummary.pdf [Accessed: 3 Jul

2013].

12 Ricardo, D. 2013.BRAZIL GDP GROWTH RATE. [online] Available at:http://www.tradingeconomics.com/brazil/gdp-growth [Accessed: 2 Jul 2013].

13 Taborta, J. 2013.ITALY GDP GROWTH RATE. [online] Available at:http://www.tradingeconomics.com/italy/gdp-growth [Accessed: 1 Jul 2013].