Cafe de Columbia Essay

Decent Essays
Case Study 3- Café de Colombia
1. Problem Identification
FNC (Federacion Nacional de Cafeteros de Colombia) is a private legal entity of an associative in a not-for-profit character whose aim is to promote the coffee business of Colombia and raise the living standards of the growers. Since 1960 this organization has accomplished an effective marketing strategy through a well-known copyrighted logo, but there are new challenges right in front of them. Café de Columbia needs to reformulate their marketing and corporate strategy in order to maintain their current market share as well as increase the perceived image of their brand in the eyes of the US consumers. The available resources for advertising have
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There is not any other diverse product which makes Café de Colombia more distinguishable.
Promotion of quality over price and people’s preferences for high quality coffee for out-of-home consumption is an opportunity that may help Café de Colombia. The increased interest in Gourmet Coffee Business that is aimed at creating an atmosphere of enjoyment is another opportunity that lies ahead.
Changing consumer preferences about traditional coffee products among younger generations is a global challenge to all coffee producers. Coffee price volatility due to lack of coordination between producing countries is another threat that the sector faces. Lastly “Trickle-down” effects of innovative coffee products (like Frappuccino) make the coffee ingredient less important and it may hamper the business more.

3. Alternative Solutions
Although there are many ideas that FNC may implement, few of them addresses the problem fully. One example is about increasing the advertisement budget through sharing the brand with other countries or charging for the use of the logo; however these actions may hamper the brand and logo and conflict with the existence reason thereof. Here are three alternatives:
• Product Line Extension Strategy
• Strategic Alliance and Co-branding Strategy
• Vertical integration towards roasting
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