Essay on Marketing Management

Coffee has not only impacted the world socially, but it provides financial means for many countries who export their coffee beans.

Ever since the first coffee bean tree was discovered in Ethiopia, the bean became a pleasurable commodity that spread quickly to Yemen and other Asian countries. It wasn’t long before it came to Brazil, becoming one of the largest coffee producing countries in the world today. Throughout time, people came up with brewing systems and coffee-making machines that made it easy to manufacture coffee but it wasn’t like that in the early 1800’s. Slaves came into Brazil and were forced to work in difficult labor conditions to collect and roast coffee beans.

1. Coffee is one of the most common breakfast items found on any table in the morning and now sold all throughout the day. Coffee is grown and exported from places like Columbia and the Asian Pacific, to anywhere like Hawaii and the biggest producer, Brazil. 1/3 of the world 's coffee supply comes from Brazil, because of the nations tropical climate it is able to grow coffee very easily and plentiful. Brazil had many other types of climates but the hot and tropical one is great for the production of coffee.

According to statistics, Finland is the country with the highest per capita consumption of coffee, and China is the lowest one, but in Finland there are nearly five million residents only, which means Finland will consume a million bags of coffee every year, but the 1.3 billion residents of China will provide approximately 200 million potential coffee consumers, and this will make China becomes a major coffee market. On the other hand, under the same culture background, compare to Japan and Korea, Chinese average annual per capita consumption is only around 20 Cups, but this also means Chinese consumer coffee market has a big room for future growth.

According to a study by Market Force Information, there is still considerable room for growth in the coffee house and snack chain industries. In a recent survey, data shows most consumers visit a coffee shop around once a week, with 70% reporting that they go to coffeehouses or snack restaurants less than five times a month. Many reported that they use time at a coffee or snack restaurant to reflect, or as an escape. That, paired with the fact that just 4% of consumers reported trying a new coffeehouse or snack restaurant in the last 30 days, indicates big room for growth for chains.

Continuous war in combination with rampant drug trafficking has caused the coffee industry in Colombia to struggle for many years, though Colombia’s long history with coffee predates that struggle. The coffee plant first reached Colombia sometime in the late 1700s (Encyclopedia of World Trade: From Ancient Times to the Present) and Colombia entered the coffee trade in the 1830s (Wikipedia, Coffee Production in Colombia). The geography of Colombia lends itself well to coffee production. Located in southern South America, Colombia is home to the Andes Mountains, which provides an optimal altitude for coffee (and coca) to grow. The Andes have three sets of mountain ranges, the Western Cordillera, the Central Cordillera, and the Eastern Cordillera. The majority of the coffee plantations in Colombia are on the western side of the Eastern Cordillera (Philip’s World Factbook 2008-2009).

The 9th largest coffee producer in Latin America is Peru. It is mainly produced in the valleys of Chanchamayo and Urabamba. The coffee is described as being “mild, flavorful, and aromatic”. Most farms are small in the country, being only 5 acres. The crops are grown all over the country, but

As seen in the above graphical representation of major world production it’s true that Brazil is the leading producer of coffee globally and its production capacity is seen to increase recently. This is despite the fact that its land area under coffee has been diminishing owing to adverse climatic conditions.

Lets take for example the coffee that we see on the store shelves in the United States that are grown in Colombia. After the coffee is produced and packaged

» V G Siddhartha’s family has been in the coffee business for more than 130 years

Arabica is a higher quality and higher value coffee normally grown in cooler, elevated areas of the tropics. Arabica is used in the roast and ground coffee market and is added to blends of Robusta to improve quality of instant coffee. Brazil and Columbia are the major producing countries. Almost all coffee grown in Myanmar has been grown as a back yard crop. The coffee is all grown in totally natural conditions under jungle cover without the benefit of fertilization, pest control or pruning. Most of the Arabica coffee grown in Myanmar is grown at altitudes of over 900 m., In 1994 the government decided to promote the growing of coffee as an export crop. The challenge is to increase coffee quality and consumption in both coffee producing and consuming countries and reduce the amount of poor quality coffee in the market place. At present coffee is produced in twelve Divisions in Myanmar as shown below.

FDI is freely allowed in most sectors, including the service sector. FDI for virtually all items or activities can be bought in through the Automatic Route under powers delegated to the Reserve Bank of India and for the remaining items or activities through the Government approval. Government approvals are accorded on the recommendation

Arindam K. Bhattacharya and David C. Michael (2008) says that tariff barriers have been lowered and foreign investment have been permitted, multinationals have rushed into countries and it appeared like they would quickly defeat the local rival and capture the market for every product or services. Poor nations like Brazil, Mexico, India, and Russia were assuring that local enterprise would be washed out by

FDI is defined as cross-border investment by a resident entity in one economy with the objective of obtaining a lasting interest in an enterprise resident in another economy. The lasting interest implies the existence of a long-term relationship between the direct investor and the enterprise and a significant degree of influence by the direct investor on the management of the enterprise. Ownership of at least 10% of the voting power, representing the influence by the investor, is the basic criterion used. (OECD Factbook 2013: Economic, Environmental and Social Statistics) Foreign direct investments were prohibited in India prior to 1991. Liberalization was introduced in 1991 which allowed for FDI. Defense, petroleum & gas, banking, airline, telecom, single brand retail, and multi-brand retail are fields investors can enter after obtaining approval. Below we see the investment caps for each industry (EY).

Opportunities exist in coffee roasting and grinding, with a further potential such as in the production of decaffeinated coffee for export.