Nannarella
Nannarella’s aim is to enhance the Portuguese culinary heritage in revenues of ice
cream and at the same time respecting the
tradition of Roman ice cream. In order to become more known, the company is likely to
increase its advertising and create an own
website. On a homepage, customers could be
informed about Nannarella’s ice cream production and services. The website will be
translated into various languages, especially
English. Furthermore, the homepage is to provide the option for customers to order online.
Nannarella might also think about expanding, since customers are very happy with its
concept. For now, the brand has only one
store. Given long waiting times, a better distribution system would enable the brand to
serve more customers.
However, this second aspect of a future
strategy, namely expansion, proves to be a
trap for many companies. The company’s
founders know that Nannarella’s differential
advantage lies in exceptional flavor offerings
that change in a daily manner to provide customers with new taste sensations. In the case
of expansion, it might become difficult for the
company to keep up this routine. As we have
seen in the differential advantage analysis,
Amorino has trouble coming up with new flavors to establish in all 17 countries it is operating in. Therefore the founders know that
Nannarella’s expansion has to be prudent and
well advised. The company is likely to open a
second shop, located in the city center of Lisbon to expand its market reach and to balance
customer demand. With this in mind, the second store has to operate in the same fashion
as the original one, meaning it will provide
little space inside the parlor, have the production site behind the counter, and offer a small
but constantly changing ice cream menu. In
order to have more products to serve during
winter months, one could advise the company
to expand its product range, serving various
sweets, such as crêpes and waffles to go with
its ice cream. With more products and services offered, the company must provide
space for consumption inside the parlor. Nannarella’s management team, however, argues
that this would most probably impair the
store’s image of the “little corner shop”.
In conclusion, Nannarella’s future strategy is
hard to determine explicitly. On the one hand,
Nannarella ice cream attracts so many customers, that the company could really consider expanding its market reach by opening new
stores in Lisbon. Furthermore, additional
products might be added to the store’s menu,
satisfying more customer needs. Accordingly,
a bigger store would provide customers with
44