Austria· Belgium· Finland· Portugal
Micro Level Factors
Customer Base
- Age group 16-64 population in Helsinki:
(estimate) 428,641 people
- Population Registration Centre, 2013)
Content
Macro Analysis: PEST
Introduction of Pret A Manger
Micro Level Factors
Decision Making Framework
Lifestyle
Choice 1 --- Finland
- Strong coffee culture in Finland (Ojaniemi, 2010)
- Trend towards organic food/functional food (USDA Foreign Agricultural Service, 2012)
- Café culture is still developing
- First opened in London in 1986
- Prêt à Manger means ‘ready to eat’ in French
- Finnish economy is a mature market
- Coffee culture is strong in Finland
- Café culture is still developing
- Analysis focuses on Helsinki
- Introduction of Pret A Manger
- Macro Analysis: PEST Analysis
- International Market Selection
- Micro Analysis of Finland
- Micro Analysis of Austria
- Comparison of Finland and Austria
- Conclusion and Evaluation
- References
- PEST analysis covers the Political, Economic, Social and Technological factors of the food retail environment for Pret A Manger
- Enables Pret A Manager to gain in-dept Macro-level factors of each individual countries
- Pret produces high quality sandwiches, coffee, hot soup and baguettes
- It emphasizes on using fresh ingredients on a daily basis
Micro Level Factors
Competitors
- Owned by the Finnish S-Group
- Drinks, 6 different fresh foods
- 5 outlets
- Owned by Paulig
- Focusing on drinks
- 16 outlets
- Owned by Swedish Wayne's
- Drinks and fresh foods
- 12 outlets
Micro Level Factors
Competitors
- 300 cafes in Helsinki, approximately 2000 consumers per cafe (Finnish Restaurant Guide, 2013)
- Interest in gourmet coffee still developing
ECONOMIC
POLITICAL
Introduction of Pret A Manger
Economic Indicators
Economic Indicators Weighted Table
Political Indicators
International Market Selection
Systematic Approach
- Business Freedom
- Labor Freedom
- Property Rights
- Freedom from Corruption
- Per Capita GDP
- GDP Growth Rate
- Food Services Turnover Rate
- Food Services Investment Rate
- Consumer Price Index
- Unemployment Rate
- Inflation Rate Trend
- 85% of its trade is based in London, where the rest are spread around internationally
- In 2012, the first outlet was launched in Paris
Diet
- PRET is categorized as Healthy fast food (Sandwiches and Drinks)
TECHNOLOGICAL
Tourist Population
- Why is this important?
- PRET locate at busy places!
- Some tourists may want quick lunch
Technological Indicators
- Cellular Phone per Capita
- Internet Penetration
SOCIAL
- Pret A Manger now has 335 stores worldwide including Hong Kong and New York (Robinson, 2013)
Population/ Capital Population
Cost of Livings
How much do they spend per meal?
Population
Austria : 8.4M
Belgium : 10.7M
Finland : 5.3 M
Portugal: 10.7M
Capital Population
Austria : 1.7M
Belgium : 1.2M
Finland : 0.6M
Portugal : 2.8M
Other Social and Cultural factor we may concern ......
Austria vs Finland
Conclusion & Evaluation
- Austria is the most favourable country for Pret
- First outlet of Pret - Vienna
- Larger consumers base
- Less competition in the market
- High potential based on the lifestyle
Austria Micro Level Factors
Bargaining Power of Consumers
Consumer spending reached approximately €48789 million in the 2nd quarter of 2013
Micro Level Factors
Bargaining Power of Consumers
- In 2013, there are roughly 1.1 million people in age 20-64 among the total population of Vienna
- Pret intents to focus on the middle to upper class consumers, including white-collar workers (Rix, 2004)
- Large cities with high population is attractive to Pret (Robinson, Financial Times 2013)
Choice 2 --- Austria
References
Micro Level Factors
- Strong cultural value
- Coffeehouses are crucial to the local
- High population meaning a strong consumers base
- Analysis focuses on Vienna
Lifestyle
- Snack food - open sandwich (belegte Brote)
- Coffee culture is strong
- The pace of life of Vienna is ranked as number 10 (Wiseman)
- Austria, S. 2013. STATISTIK AUSTRIA - Population Forecasts. [Online] Available at: https://www.statistik.at/web_en/statistics/population/demographic_forecasts/population_forecasts/029033.html [Accessed: 11 Dec 2013].
- Austria, S. 2013. STATISTIK AUSTRIA - Tourism. [Online] Available at: http://www.statistik.at/web_en/statistics/tourism/ [Accessed: 11 Dec 2013].
- Austria.info. 2013. Kaffeehaus Coffee Culture in Austria. [Online] Available at: http://www.austria.info/uk/the-austrian-way/kaffeehaus-coffee-culture-1132412.html [Accessed: 11 Dec 2013].
- Belgium.angloinfo.com. 2013. Food Culture in Belgium | Belgium. [Online] Available at: http://belgium.angloinfo.com/lifestyle/food-and-drink/ [Accessed: 11 Dec 2013].
- Cia.gov. 2013. The World Factbook. [Online] Available at:
- Cia.gov. 2013. The World Factbook. [Online] Available at: https://www.cia.gov/library/publications/the-world-factbook/geos/be.html [Accessed: 11 Dec 2013].
- Cia.gov. 2013. The World Factbook. [Online] Available at: https://www.cia.gov/library/publications/the-world-factbook/geos/fi.html [Accessed: 11 Dec 2013].
- Epp.eurostat.ec.europa.eu. 2013. File:Key indicators, food and beverage service activities (NACE Division 56), 2010 B.png - Statistics Explained. [Online] Available at: http://epp.eurostat.ec.europa.eu/statistics_explained/index.php?title=File:Key_indicators,_food_and_beverage_service_activities_(NACE_Division_56),_2010_B.png&filetimestamp=20130507082351 [Accessed: 11 Dec 2013].
- Epp.eurostat.ec.europa.eu. 2013. File:Key indicators, food and beverage service activities (NACE Division 56), 2010 A.png - Statistics Explained. [Online] Available at: http://epp.eurostat.ec.europa.eu/statistics_explained/index.php?title=File:Key_indicators,_food_and_beverage_service_activities_(NACE_Division_56),_2010_A.png&filetimestamp=20130507082342 [Accessed: 11 Dec 2013].
- Everyculture.com. 2013. Culture of Austria - history, people, clothing, women, beliefs, food, customs, family, social. [Online] Available at: http://www.everyculture.com/A-Bo/Austria.html#ixzz2lgBd5ot9 [Accessed: 11 Dec 2013].
- Financial Times. 2013. Pret A Manger to speed up expansion - FT.com. [Online] Available at: http://www.ft.com/cms/s/0/22b8c9b6-ab47-11e2-ac71-00144feabdc0.html#axzz2mzI6eCmG [Accessed: 11 Dec 2013].
- Food From Finland. 2013. Home. [Online] Available at: http://www.foodfromfinland.com [Accessed: 11 Dec 2013].
- Food From Finland. 2013. Home. [Online] Available at: http://www.foodfromfinland.com [Accessed: 11 Dec 2013].
- Hammond, S. 2013. Facts about Austria - Food and Travel. [Online] Available at: http://www.foodandtravel.com.au/austria/facts-about-austria [Accessed: 11 Dec 2013].
- Heritage.org. 2013. Index of Economic Freedom: Promoting Economic Opportunity and Prosperity by Country. [Online] Available at: http://www.heritage.org/index/ [Accessed: 11 Dec 2013].
- https://www.cia.gov/library/publications/the-world-factbook/geos/au.html [Accessed: 11 Dec 2013].
- Kysy.fi. 2006. Finland is the biggest consumer of coffee in the world, could you tell me more.... [Online] Available at: http://www.kysy.fi/en/kysymys/finland-biggest-consumer-coffee-world-could-you-tell-me-more [Accessed: 11 Dec 2013].
- Kysy.fi. 2006. Finland is the biggest consumer of coffee in the world, could you tell me more.... [Online] Available at: http://www.kysy.fi/en/kysymys/finland-biggest-consumer-coffee-world-could-you-tell-me-more [Accessed: 11 Dec 2013].
- Maitland, O. 2013. Key Note | Market Research, Consumer Dynamics and Industry Analysis. [Online] Available at: http://www.keynote.co.uk [Accessed: 11 Dec 2013].
- Mayer, A. 2013. Food Culture. [Online] Available at: http://www.tasteofaustria.org/index.php/features [Accessed: 11 Dec 2013].
- Mkt.unwto.org. 2013. UNWTO Tourism Highlights, 2013 Edition | Tourism Trends and Marketing Strategies UNWTO. [Online] Available at: http://mkt.unwto.org/en/publication/unwto-tourism-highlights-2013-edition [Accessed: 11 Dec 2013].
- Numbeo.com. 2013. Cost of Living Index by Country 2013. [Online] Available at: http://www.numbeo.com/cost-of-living/rankings_by_country.jsp [Accessed: 11 Dec 2013].
- Portugal.angloinfo.com. 2013. Food and Drink in Portugal | Portugal. [Online] Available at: http://portugal.angloinfo.com/lifestyle/food-and-drink/ [Accessed: 11 Dec 2013].
- Pret.com. 2013. Pret A Manger - About Pret A Manger. [Online] Available at: http://www.pret.com/about/ [Accessed: 11 Dec 2013].
- Richardwiseman.com. 2013. Pace of Life. [Online] Available at: http://www.richardwiseman.com/quirkology/pace_home.htm [Accessed: 11 Dec 2013].
- Tourmycountry.com. 2013. Coffee in Austria : Austrian & Vienna Cafe Culture. [Online] Available at: http://www.tourmycountry.com/austria/coffee.htm [Accessed: 11 Dec 2013].
- World Life Expectancy. 2013. World Life Expectancy. [Online] Available at: http://www.worldlifeexpectancy.com [Accessed: 11 Dec 2013].
Micro Level Factors
Threat of Competitors
- The unique culture of traditional coffeehouses in Austria (Kaffeehäuser)
- Local sandwich shops (Trzesniewski)
- Starbucks – the strongest global competitor to Pret
- Coffeeshop Company – an Austrian local enterprise business offering high quality coffee
Presented by:
Razan BANAHI, Kei CHENG, Jeffrey LO, Cahya WARDHANI, Qianyi LI, Xuan QIN