History of Tchibo Company
• Tchibo, the world's fourth largest coffee player by
retail value and German chain of coffee shops and
cafés, also known for its weekly-changing range of
other products.
• 1949 Max Herz established the company.
• In the 1970s, Tchibo became the first branch in
Germany.
• For 60 years, the Hamburg-based business has
scouted out trends and customer preferences in order
to offer the best products at the right time.
• The latter includes: clothing, household items,
electronics.
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“ Every week a new world ”
Tchibo in Turkey
In 2004 Tchibo began the marketing
research in Turkey
In year 2010 Tchibo has 37 branches in Turkey
Position industry
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Headquarters:Hamburg Area, Germany
Industry: retail
Type:Privately Held
Status:Operating
Company Size:12,000 employees
2009 Revenue:3,200,000,000 [EUR]
Median Age:28 years
Median Tenure1.5 years
GenderMale:78%
Female:22%
1300 branches
Strategies
• Pricing strategy: Use the penetration pricing
strategy and make sure that in all distribution
channels the products are offered for the
same price.
Price and quality strategy
Buyers choose Tchibo products because they
look for excellent quality at a fair price. They
trust Tchibo and the guaranteed quality. They
want great coffee taste and the experience of
the „Every week a new experience‟.
Product and quality
TCHIBO has it’s own brand named TCM. It
serves as a guarantee of carefully selected
products that made to excellent quality
standards. You will find the TCM Seal on each of
our products, from T-shirts to cooking pots. This
guarantees product quality, careful selection and
exclusive production. TCM stands for 'Tchibo
Certified Merchandise'.%30 TCM products are
produced in turkey especially in Bursa.
Location strategy
• “Our main criterion for identifying potential
locations is the location itself, whether it is a
crowded area, a High Street or a shopping
center, and the size of the shop for
presentation of food and nonfood, as well as
for the coffee bar area.”
Who are the current and potential
customers of Tchibo?
• The current buyers are households in several
European countries who are searching for
great coffee taste at a fair price and useful
value for money consumer goods. Tchibo
offers products for all ages and income levels.
Although the product range is not genderrelated, it should be considered that the
majority of the buyers will be women because
they mostly do the family shopping.
Store atmospherics strategy
• The smell of coffee in the store adds to the
ambience. “coffee bar area.” „Every week a
new-Experience‟ marketing concept, plus the
three-in-one-shop atmosphere, the desire to
buy awakes
Comparison with the competitors with
regard to strategies
• There are no direct competitors, because the
Tchibo concept is unique worldwide
• So it has two kind of indirect competitor:
• Food products competitors: starbucks, gloria
jeans
• Consumer good competitors: wal mart, metro
• Since year 1997 there was an other Berlin-based
direct competitor company eduscho but after
buying eduscho’s rival tchibo became the
market leader.
Communication strategy
• In the strategic options three distribution
channels were selected: joint venture,
franchise and e-commerce
• Customers can order the non-food products
and the coffee range with the mail-order
magazine which is published monthly
Evaluation of Tchibo
• Tchibo has a worldwide unique three-in-one-store
model
• Great know how in the coffee consumer goods
business
• Good business relations to cooperation partners and
suppliers
• It offers high quality products at a low price
• Early adopter of internet and strong in e-commerce.
Prepared By
• Gülşah YANAR
• Gizem TAŞKIN