Case Study 3- Café de Colombia
By
Nuri GOKCEK
10.22.2008
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 …show more content…
These products enable further differentiation through specific geographic areas with certain characteristics (i.e. Ecotopos). This alternative allows for brand re-invention and it may succeed in the way the first marketing strategy was successful because the first marketing strategy was based on differentiation of the product. New products will make Café de Colombia more refined and more customer loyalty can be created. However there is a risk that people may not be as aware of Colombia’s specific regions so to make the branding successful.
In the Strategic Alliance and Co-branding Strategy, FNC may create establishments such as partnerships with small coffee chains. Although there is an offer from a leading fast-food chain restaurant for a strategic partnership, this option has a risk of diluting this successful brand. So, working with small coffee chains is a good alternative that is expected to create customer loyalty. “Fair Trade” label specially for the gourmet coffee business is another important aspect of this alternative which makes the image of the brand even better. This may lead to increased sales through more exposure and recognition of moral qualities. There is the risk of problematic management issues with small coffee chains and risk of “trickle-down” effect if the coffee is not emphasized enough. In the vertical integration towards roasting alternative FNC may develop a branded specialty chain through the