Professional Documents
Culture Documents
IN PETERBOROUGH
STUDENT: HUMBERTO GIL
MEJIA
LECTURER:DEVORAH GREEVE
MBA ANGLIA RUSKIN
UNIVERSITY
INDEX
1.INTRODUCTION
2.HISTORY OF COFFE
3. COFFEE FROM COLOMBIA
4. JUAN VALDEZ CAF PROCAFECOL FRANCHISE
5. REPORT OVERVIEW
6.PESTEL ANALYSIS
6.1 POLITICAL
6.2ECONOMICAL
6.3 SOCIOLOGICAL
6.4 TECHNOLOGICAL
6.5 LEGAL
6.6 ENVIROMENT
7. PORTER 5 FORCES
8. JUAN VALDEZ PORTER 5 FORCES
8.1SUPPLIER POWER
8.2 BUYER POWER
8.3 COMPETITIVE RIVALRY
8.4THE THREAT OF SUBSTITUTION
8.5THE THREAT OF NEW ENTRY
9. SWOT ANALYSIS
10. JUAN VALDEZ CAF SWOT ANALYSIS
11.THE MARKETING PLAN
12.CORPORATIVE OBJECTIVES
13.GROWTH STRATEGY
14.MARKET PENETRATION
15.MARKETING SEGMENTATION
16. JUAN VALDEZ CAFE SEGMENTATION ANALYSIS
17. MARKETING SEGMENT
18.MARKET POSITIONING
19 REFERENCES
20 APPENDIX
1. INTRODUCTION
Coffee is a beverage that is made from hot mix of roasted beans of the coffee plant (Coffea
Rubiaceae family known as coffee).
Although commercially is the world's number one beverage is estimated that one third of the
world population consumes it (half the world's population consume tea).
Coffee is the worlds most widely traded tropical agricultural commodity, accounting for
exports worth an estimated US$ 15.4 billion in 2009/10, when some 93.4 million bags were
shipped.19:13 07/04/2013 (International Coffee Organization 2013) (1)
Its popularity is largely due to its invigorating and stimulating effect, due to the presence of
caffeine in about 0.75% to 1.5% by weight.
Caffeine acts in this case as a stimulant and diuretic acting on the central nervous system,
heart, veins, arteries and kidneys.
2.HISTORY OF COFFE
There are two possible origins of the name of the drink (2)
In one the name derives from the Arabic word qahwah (similar to its use and pronunciation
in Slavic languages, and another that connects etymologically with the province Kaffa in
south western Ethiopia (Abyssinia) credited as being the birthplace plant that gives rise to
the drink.
Those plants growing wild in Kaffa were taken to southern Arabia where they were cultivated
about 500 years ago. The origin is doubtful considering how the name of the drink in
pronounced in different languages. In Chinese kai-fei, in Swedish and Danish kaffe, in
Dutch and German Kofi, in Finnish kahvi, Kav Hungarian, Polish and Ukrainian kawa in
Persian and Turkish kahveh, ending in Castilian, Portuguese and French coffee.
3. COFFEE FROM COLOMBIA
Is the name that is given to 100% Arabica coffee beans produced in Colombia's coffee
regions in altitude specific ranges between 1,000 and 2,200 meters above sea level (masl).
It arises from the particular combination of factors related to latitude and altitude of the land
of coffee in Colombia. Its soils, the botanical origin of the species and varieties of coffee
produced, climate characterized by the double passage of the Intertropical Convergence
Zone the changing topography, light, favorable temperature range, an adequate amount and
distribution of rainfall during the year and local cultural practices including, selective
collection processes and processing of the fruit, washed and dried. These factors together
lead to the production of a protuberant coffee, soft, clean with relatively high acidity, body
balanced pronounced flavor and excellent sensory profile.
The products Behind Caf de Colombia have been famous by its remarkable marketing
campaign. The most important factor is that Colombian growers are aware of the importance
of origin in a cafe not only from the point of view of their quality, but from the perspective of
social environment.
Colombia differs from other countries by having a coffee institution working for sustainable
production welfare to coffee growers called the Colombian National Federation of Coffee
Growers (CNFCG) is known since its foundation in 1927 (3)
4. JUAN VALDEZ CAF PROCAFECOL FRANCHISE
Procafecol S.A. was created in November 2002 by the National Federation of Coffee
Growers of Colombia, coinciding with the opening of a store first Juan Valdez Coffee in
Bogot D.C (4)
Since 2004, Procafecol S.A. began the process of expansion of Juan Valdez Coffee shops
in different cities starting with Bogota, the capital of Colombia and in 2006, following the
creation of the brand began Juan Valdez products through new channels of distribution
as supermarkets and institutional channel of Colombia. This new dynamical allowed the
company to reach the premium Colombian coffee products to more consumers in Colombia
and in the world
The year 2005 was the beginning of the international expansion for Juan Valdez . This year
marked a milestone for the brand after its arrival in major markets like Spain and the United
States. From 2006 were created alliances with companies such as Falabella of Chile, Casual
Brands Group in Spain and Latincaf - Int Food Services Corp of Ecuador, which made it
possible to open the doors of new stores Juan Valdez Coffee to the public offering of new
territories best premium Colombian coffee.
5. REPORT OVERVIEW
Juan Valdez the franchisees flagship character was created in 1959 and since then
represents more than 500,000 Colombian coffee families. Its primary function is to promote
to the world the work and dedication that make it possible to obtain an exquisite product and
unique as Colombian coffee.(5)
For years, Juan Valdez has been dedicated to the promotion of Colombian coffee and put
his firm in 2002 as a backup to the products that bear his name and coffee shops where real
live premium Colombian coffee experience.
Thus was created the Juan Valdez Coffee shops, where thanks to our coffee and our
paper we provide an unforgettable experience for each of our clients.
Since the creation of Juan Valdez as the brand that identifies the premium Colombian
coffee, their products, and coffee shops became the showcase for excellence to boost the
work of farmers, reflecting their responsibility and commitment to the producers of the best
beans from Colombia.
6.PESTEL ANALYSIS
PESTEL is an acronym that stands for Political, Economical, Social, Technological,
Environmental and Legal. It is used by many international consultancies to describe an
analysis that is used for determining the opportunities and risks of global expansion.
(PESTEL, 2013)
6.1 POLITICAL
CHANGE TAKING PLACE
government in 2002(PROCAFECOL)
6.2 ECONOMICAL
CHANGE TAKING PLACE
coffee traders.
coffee growers
6.3 SOCIOLOGICAL
CHANGE TAKING PLACE
6.4 TECHNOLOGICAL
Implement of special machines for making
inventory, etc.
COL)
Baristas trained in the Specialty Coffee
6.5 LEGAL
International certification ISO 9000 for quality
from customers
6.6 ENVIROMENTAL
Climate changes is varying the temperature
Colombia
harvests (8)
Constants tropical pests affecting crops of
7. PORTER 5 FORCES
It is a very accurate approach for planning corporate strategy proposed in 1980 by
Michael E. Porter in his book Competitive Strategy: Techniques for Analyzing
Industries and Competitors.
The point of view is that Porter five forces determine the consequences of long-term
profitability of a market or some segment of it. The idea is that the corporation must
evaluate their objectives and resources against these five forces which govern
industrial competition. (Vector study, 2008. Five forces competition)
Coffee rust, devastates coffee farms in some parts of the coffee zone in Colombia.
The rust infects leaves on coffee plants and Quickly Inhibits Their Ability to produce
the coffee beans that end up in our favorite arabica or robusta coffees.
Recent strikes by farmers in Colombia make the international price of coffee rising
increasingly.
A lot of competitors. There are three main brands of coffee in the UK. Costa
Coffee with 1,342 coffee shops and owns the 40.4% of the market, Starbucks with
743 coffee shops and owns the 30.7% of the market and Caffee Nero located in
third with 490 coffee shops and owning the 14.0% of the market. The next
competitor in the list will be ATM Coffee but they only own the 1.7% of the market.
(Rupert, N.2012)
8.4THE THREAT OF SUBSTITUTION
Although Juan Valdez Cafe stands out as a very competitive franchise in the
Peterborough area are major brands and franchisees as Costa, Starbucks, Cafe
Nero, plus many independent shops that make the business is very competitive.
8.5THE THREAT OF NEW ENTRY
One important threat for a coffee shop business like Juan Valdez is the threat of
new entry of more competition in the market
9. SWOT ANALYSIS
The SWOT analysis (Strengths, Weaknesses, Threats, Strengths, and Opportunities)
provides an assessment of the state of the organization both internally and externally. The
analysis is divided into two different axes:
External and internal level: taking into account the threats or opportunities that come from
outside as well as weaknesses or strengths of the organization internally.
The SWOT analysis is a useful tool because of its effectiveness to set goals within the
company.
WEAKNESS
coffee worldwide
coffee beans
OPPORTUNITY
THREATS
Asia
12.CORPORATIVE OBJECTIVES
Positioning Juan Valdez as the brand premium Colombian coffee in Peterborough
Generate satisfaction in customers around products, environment and services.
13.GROWTH STRATEGY
ANSOFFS MODEL
The matrix or matrix Ansoff product / market is a strategic analysis tool mainly in the area of
marketing, used to define what are the strategic alternatives organization require to increase
sales. For startups will be the entrepreneur or the CEO who must use it to squeeze all the
information that can facilitate strategic tool.
Representing each of the axes of the Ansoff matrix current and future possibilities of the
company in terms of products and markets, this matrix provides four strategic alternatives:
Existing Markets
New Markets
Existing Products
New Products
Market Penetration
Product Development
Market Development
Diversification
14.MARKET PENETRATION
According with a recent study the penetration of the coffee shops, There are more than
5,000 branded coffee shops in town centres, retail parks, railway stations, airports and even
drive-thrus along motorways across the UK, and last year they served up 2bn of coffee
double the sales recorded in 2005. Add in the independently owned coffee shops another
5,500 and the near 5,000 that have rapidly sprung up in outlets from corner shops to
Wetherspoons pubs, and there are already well over 15,000 places to find a caffeine fix.
15.MARKETING SEGMENTATION
Marketing segmentation involves dividing a market into smaller segments of buyers
with distinct mixes. Through market segmentation, companies divide, large, heterogeneous
markets into smaller segments that can be reached more efficiently and effectively with
products and services that match their unique needs. (Kotler and Armstrong, 2012 p.214)
There are four major segmentations variables for consumer Markets according to
Kotler and Lane (2012).
Geographic Segmentation that calls for dividing the market into different geographical
units, such as nations, regions, states, counties, cities or even neighbourhoods.
Working status: Type of job takeaway coffee drinkers has. Full time and part time employees
will be the market that the company will focus due this to groups use more takeaway service.
(Mintel, 2012)
Sit-in or takeaway visits to coffee shops, by detailed demographics, 2011 (Mintel, 2012.
Figure 29)
Sit-in
%
Gender:
Men
Women
Age group:
15-24
25-34
35-44
45-54
55-64
65+
Working status:
Full-time
Part-time
Not working
Takeaway
%
77.1
84.7
20
15.3
75.3
68.6
76.3
84
88.9
91.3
28.9
32.1
26.7
14
5.7
2.5
74.9
84.4
85.5
25.6
15
11.5
design, publicize, deliver the product or service and put a price so as to satisfy the target
market.
The company also define the program and marketing activities to better respond to the offer
of competitors.
However, even a segment is sometimes fictional, at least in some sense, since not all
members of a segment want exactly the same product, so companies must submit offers
flexible to all members of a segment.
Age group segmentation: Juan Valdez Cafe will focus in the drink-take away market,
between ages 15-44 because they are the potential group of clients.
18.MARKET POSITIONING
An effort to influence consumer perception of a brand or product relative to the perception
of competing brands or products. Its objective is to occupy a clear, unique, and
advantageous position in the consumer's mind (Kotler and Armstrong, 2012)
High Price
Starbuck Coffee
Costa Coffee
Caff Nero takeaway express line
High Quality
Low Quality
Low Price
the most desired product is the cappuccino in marketing include identity elements, such as
clothing, jumpers, agendas, backpacks, bags, etc..
The location of Juan Valdez Cafe in the city centre of Peterborough is key to determine the
success of a chain of retail. Juan Valdez Cafe looks to cater to your target market with
strategically placed shots (Kotler and Armstrong, 2012 )
Promotion
Juan Valdez coffee undertake massive campaigns to disseminate its clients through:
Television: trade through regional channels in Peterborough and also using video clips
representing corporate identity of Colombian coffee.
Permanent contest in coffee shops where consumers are rewarded with clothing, bags,
calendars, etc. ...
Sales promotion: Juan Valdez cafe special users with 'Caf Citizen Card' for clients
rewarding. It is a loyalty program for new customers and retain existing ones.
Process
The ordering process and delivery in the CCD is based on principles of self-service. But now,
in most coffee shops the waiter comes and takes the order and deliver order in the table. In
the take- away process is more simply, the customer orders and a red recyclable glass is
given.
Physical evidence
a) Juan Valdez coffee and red colors are used in logo,the red represents vitality, passion
for coffee. Along with Juan Valdez and his mule Conchita representing the image of
Colombian peasants working in the collection and processing of coffee, for a high quality
value
b) Architecture and Decoration: Largely wood interior with tropical colors and granite based
mountains and coffee plantations in Colombia, representing an environment friendly and
colourful
c) Literature: The literature provided by Juan Valdez cafe is indicative of its youthful image.
The menus, posters, brochures are designed to attract potential clients
People: People in Juan Valdez coffee have the belief that motivation and personal skills
are of great importance placed. Their employees are like friend to the client, but also know
about international standards of hygiene and cleanliness.
MARKETING MIX:
Product
Juan Valdez cafe is designed to attract premium coffee lovers or good quality. The
products taste decidedly Colombian - either lunch or coffee with variations depending on the
weather and temperature. It will be offered the classic black and very recognized Cafe,
American, cappuccino, etc. In summer, for example is offered Frappe coffee and ice is
mixed. In winter the most desired product is the cappuccino in marketing include identity
elements, such as clothing, jumpers, agendas, backpacks, bags, etc..
Price
Price is the monetary value we place upon our products offer them to consumers. Some we
can design strategies related to price are:
The age range is between 15 and 29 years have tried to get a policy that can satisfy all its
customers. The price of a cup of coffee varies from 2.50 to 3.70 Prices are fixed and the
elevation is due most of all to taxes than anything else.
Americano..........................................................................................................1.75
Capuccino...........................................................................................................2.30
Frappe................................................................................................................3.70
Expresso............................................................................................................2.50
Espresso cortado...............................................................................................2.30
Chocolate...........................................................................................................2.25
The location of Juan Valdez Cafe in Peterborough city centre is key to determine the
success of a chain of retail. Juan Valdez Cafe looks to cater to your target market with
strategically placed shots.
Promotion
Juan Valdez coffee undertake massive campaigns to reach more clients through:
Television: trade through regional channels in Peterborough and also using video clips
representing corporate identity of Colombian coffee.
Different kind of contests in coffee shops where consumers are rewarded with corporate
image as clothing, bags, calendars, etc. ...
(4) Franchise Juan Valdez Cafe, description of its creation, mission, vision and
shareholders, [Online document], available at
http://www.juanvaldezcafe.com/index.php/page/show/35/menu_internal [Accessed 7
April 2013]
(5) Colombian National Federation of Coffee Growers , Get to know Juan Valdez, the
character who represents Colombian Coffee, [Online animation], English version
available at http://www.juanvaldez.com/#/conoceme/
(6) Price of coffee in International markets [online report] and graphic statistic,
available at http://www.nasdaq.com/markets/coffee.aspx [Accessed, 7 April 2013]
(7) Rise of the price of Colombian Peso, see comparisons with other currencies,
[online report], available at http://www.xe.com/currency/cop-colombian-peso
[Accessed 7 April 2013]
(8) how-climate-change-could-eventually-end-coffee, threats for the coffee plant under
the global warming [Online journal article], available at
http://www.usnews.com/news/articles/2013/03/27/buzzkill [Accessed 7 April 2013]
(9) Vectors Study, 2008. Five forces of competition. Vectors Study. Available:
http://vectorstudy.com/management_theories/five_forces_of_competition.htm
[Accessed 07 April 2013]
(10) How coffee shops are still blooming in the UK, [online article} Available at
http://www.marketingweek.co.uk/quality-quest-keeps-coffee-sector-full-ofbeans/3033917.article
(11) Kotler, P., Lane K., 2012. Marketing Management. 14 ed. Global: Pearson.
(12) Marketing Teacher LTD 2000, 2012. Process as part of the marketing mix.
Marketing Teacher. [Online] Available at: <http://www.marketingteacher.com/lessonstore/lesson-process.html#> [Accessed 02 December 2012]
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