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Overview of Italy and TVS
Project
Italy
Southern Europe,
peninsula from Central
Mediterranean Sea to
northeast of Tunisia
 301,340 sq. km
 Slightly larger than
Arizona

Italian People
Population – 61
Million
 90% Roman Catholic
 Languages – Italian,
German, French
 Literacy – 98.4%

Government
Government –
republic
 Capital – Rome
 Legal system – civil
law
 Chief of State – Prime
Minister Mario
MONTI

Economy



Diversified industrial
economy – developed
North, welfare-dependent,
agricultural South
High underground economy
(17% GDP)
Reforms – balance budget,
decrease debt, increase
VAT, pension reforms, cuts
to public administration
Economy
GDP – $1.847 trillion
(11 in the world)
 GDP growth = 0.4%
 GDP per capita –
$30,500 (45 in the
world)

Economy
GDP composition –
agriculture (2%),
industry (24.7%),
service (73.4%)
 Labor force – 25M
 Unemployment –
8.4%
 Inflation – 2.9%

Economy
Agricultural products
– fruits, vegetables,
grapes, potatoes,
sugar, soybeans etc
 Industry – tourism,
machinery, food
processing, iron and
steel, ceramics, etc

Export
Volume - $525 B
 Products –
engineering, textiles,
machineries, food
 Partners – Germany
(13.3%), France
(11.8%), US (5.9%)

Import
Volume - $549 B
 Products –
engineering,
chemicals, transport
equipments
 Partners – Germany
(16.5%), France
(8.8%), China (7.7%)

The Company
Company
Italian premier
cookware company
situated in
Fermignano, Italy
(near Ancona Port,
130 km from Bologna)
 Founded in 1968
 Built factory in 1986
 http://www.tvs-spa.it

Company



Starting in 2000,
innovation and
technological
experimentation drove
designs
In 2008, developed
“Ceramit” ceramic coating
with Ilag Swiss
Recipient of several
awards, including the 2011
Compasso d’Oro
Company
Dual goal : tradition +
innovation
 Theme : Made in Italy
Spirit
 Culture of design
 Highest European
standards
 International awards

TVS Service
Return rate < 1.5%
 Average lead time <
45 days
 On time deliveries >
95%

Business Approach



Respect for environment
Green philosophy –
Cadmium and lead free
coatings, recyclable paper
in packaging
260 employees (195Production, 10 - R&D, 5 –
QC, 35 – Strategic
Departments such as
marketing, sales)
TVS Sales
2008 – 54.9 M Euro
 2009 – 54.79 M Euro
 2010 – 62.70 M Euro
 2011 – 67.55 M Euro
 12 M pieces sold in 68
countries (2011)

TVS Sales
30% - Italy
 19% - France
 14% - Switzerland
 6% - Russia
 5% - Sweden
 4% - Holland
 22% - Others

TVS Market Positioning
Big retailers – 68%
 Loyalty programs –
14%
 Independent shops –
7%
 Others – 5%
 Industrial – 4%
 Wholesalers – 2%

Growth in ceramic coatings
Ceramic – Euro 20M
 Roller – Euro 17M
 Lacquer – Euro 14M
 Induction – Euro 7M
 Enamel – Euro 6M
 Titan – Euro 5M

2012 Budget (in M Euro)
Industrial investments
2.1
Product
.700
R&S
.150
Buildings and Services
.600
ADV
.800
Delocalisation
2.1
Total
6.45
TVS Production Range
Rolled coated items
 Spray coated
 Ceramic
 Induction
 Titanium
 Handle

Products
Afrodite
 Arco
 Liquida
 Ho
 Terra
 100% Ceramica

Marketing
shows attended – Paris, Hong Kong,
Milan, Frankfurt, Turin, etc
 Advertising mediums – magazines, TV
commercial, radio, cinema, outdoor, blogs,
website, text messages, one-on-one
meetings
 Chef sponsor – Carlo Cracco
 Trade
The US Cookware Landscape
US Cookware Sales, 2010 (in M)
– 1087
 Aluminum – 674
 Stainless – 302
 Cast iron – 100
 Bakeware – 305
 Kitchenware – 37
 Cookware, bakeware, cutlery = $3 B market
 Total
Cookware Industry Trends
Cookware, bakeware, cutlery market sales in the
US has been declining due to poor housing sales,
declining consumer confidence, reduction in highend purchases.
 Some brands increased sales due to focus on
education
 Growth in stainless steel cookware (ie, gourmet
kitchen)

Cookware Industry Trends
Single people had food behavior suited for certain
types of cookware
 High income household more likely to spend on
high quality kitchen tools and cookware
 Childless couple with higher than average income
most likely to purchase high end cookware
 Health issues associated with certain cookware (ie
aluminum)
 Safety issues (ie glass bakeware shattering)

Cookware Industry Trends
There exist other premier brands (ie Demeyere)
 Cookware sales have been growing in other
parts of the world ie Asia (India - $625M, South
Korea – 270M, Thailand - $145M)
 Mini kitchenware have started to gain popularity
 Copper cookware from France makes inroads

China Landscape
China Landscape
 TVS
entered the China market in 2012
through a distributor in Shanghai. In just a
few months, sales have reached 300,000
Euro.
 TVS has been present in Korea and Taiwan
and has performed well.
The Project
How should TVS grow their
business in China ?
Distributor

1. Should they work with only one distributor or
multiple distributors to optimize market
development in China ?
Speed of growth
 1.
Should they grow fast or grow slow in
the China market ?
Success factors
 1.
What factors need to be considered to
develop their business successfully in
China ?
Strategies
 1.
If you were a Business Development
Consultant assigned to the TVS account,
what five (5) strategies will you recommend
in order for the company to optimize their
business in the country ?
Useful project resources
1. Review documents on Moodle and study articles that
could be relevant to the case.
 2. Check out the CIA World Factbook website for current
business and economic information on China.
 3. Check out this link : Country Commercial Guide –
China (available at export.gov)
export.gov/china/build/groups/public/.../eg_cn_025684.pdf
