▶ JOHAN STIVEN GARCIA CASTRILLON

▶ MATEO OROZCO RESTREPO

▶ DIEGO GAVIRIA
▶ ESNAYDER NIEVES VELEZ
 International marketing strategies
▶ Target market profile, selection and forecast

Total population in Canada Segment by age 15-64 5 main cities in Canada

years, Gender: Both
35,151,728 15-24: 12.12% Toronto: 16.86%

25-54: 40.32% Montreal: 11.66%

55-64: 13.94% Vancouver: 7.00%

(Indexmundi, 2017) Calgary: 3.96%

Ottawa: 3.76%

TOTAL: 66.38%

TOTAL: 43.24%

Potential market: 35,151,728 * 66.38% * 43.24% = 10,089,499.25 potential consumers

According to Juan Valdez Online Store each package of Organic coffee
contains 500g

▶ 10,089,499.25 potential consumers * 5.9 kg per year / 12months=

4,960,670 kg per month
▶ 4,960,670 kg per month / 0.5 kg (500 grams) Package = 9,921340 organic
coffee package per month
▶ 10,089,499.25 potential consumers* 5.9 kg per year= 59,528,045 kg per
year
▶ 59,528,045.58 kg per year / 0.5 kg package= 119,056,091 package per
year
International product adaptation
▶ Product

JUAN VALDEZ organic coffee packaging with vanilla and caramel essence,
offering a coffee with a unique flavor and a pleasant smell of said Colombian
coffee, as well as an excellent quality and each coffee bean that is ground, is
selected to hand and goes through various quality controls to ensure its aroma
and flavor. That is why JUAN VALDEZ CAFÉ is one of the most competitive
brands in the sector that offers a reliable and certified product, providing a
unique experience to users.
International product adaptation
▶ Packaging and Labeling
Packing: Airtight packaging equipped with a degassing valve that preserves the
flavor and smell of coffee with vanilla and caramel essence, the bag is red wine
color where it bears the name of the brand and the flavor of the coffee,
nutritional table, components, code from bars to black and white, expiration
date; all this information would go in English language.
▶ Packaging
Each package has a height of 33 cm and is designed to store 500gr of ground
coffee
Positioning and brand statement:
▶ The brand in the foreign country would be JUAN VALDEZ CAFÉ, since it is a
Colombian brand with great recognition worldwide for its excellent quality in
its products.

▶ The slogans that the company would use to distinguish our product from
others would be "THIS COFFE IS FOR YOU" and "FOR THOSE WHO VALUE A
GREAT COFFE"; with this we seek to generate emotions, well-being and
satisfaction to the consumers of our target market.
Entry mode

▶ We will use Direct export, is the most convenient because only one product
will be sold and that is exclusive to Canada, and its logistics is easy to access
to North America since we have several stores and experience to the United
States and for Juan Valdez it is easy to take products to the main stores in
Canada and final consumers that are our target market.

▶ With this entry mode (direct export) Juan Valdez can sell the product at a
reasonable price and without having to invest in physical infrastructure.
International distribution channel

▶ Retail Channel

The distribution structure we use will be short, because we use retailers as

intermediaries to facilitate distribution and marketing in Canada, especially
superstores, taking advantage of our finished product being made for the final
consumer, and this can be purchased by families or anyone interested in
Colombian coffee
▶ all this will help us to maintain a better control of the export because the
retailer will facilitate the procedures in Canada
 Competitors Prices Comparison

▶ The main competitors of our Brand are the most famous coffe’s in the world,
for this reason we will compete with premium quality.
1. McDonald’s: 17,46 USD plus taxes. (Ebay, 2019)
2. Starbucks: 5.19 USD plus taxes. (amazon, 2019)
3. Tim Hortons: 5.44 USD plus taxes. (NM, 2017)
▶ Pricing method

The average value of 500g of unprocessed coffee is US $1.1 , without the

logistical and process costs. From Buenaventura to Vancouver, the international
transportation of about 10,000 dollars of our product can cost about 1.30 USD
and approximately 1.43 USD insurance. We chose to negotiate with the FOB
method because is the most equitative and fair for both parts because each
part has the same risk and the same responsibility.
▶ FABRIC PRICE 1,1$US
▶ PROFITABILITY 25%
▶ UNIT COST: 6$ US
▶ UNIT PRICE UP= UC + DESIRED RETURN ON SALES
▶ UP= 6$ X 0,25= 7.25$ US
▶ MK UP= 6 / (1-0.25)= 8$ US
▶ EXW= 6US$ EXW UP= 7,25US$
▶ FOB = 7,25$ + 1,30$ = 8.55US$
▶ CIF= 8.55$+ 0,13$= 8.68$

Price for selling

Price Will be 8.55 USD for 500gr
Company’s income goals
▶ Regarding our target market forecast
4,960,670 kg per month / 0.5 kg (500 grams) Package = 9,921340 organic
coffee package per month
59,528,045.58 kg per year / 0.5 kg package= 119,056,091 package per year

▶ Our income goals is to sell about 50% of the projected units for the forecast
in term of sells and money in the first year, the product has a price of 17$
US per unit in Canada.
This is 17$US X (9,921,340/2)= 84,331,390 $ US per month
= 84,331,390 x 12months= 1,011,976,680 $ US per year
Promotion Campaign

Below we will explain better the advertising strategy:

▶ BILLBOARDS (ATL)
▶ T.V. AND RADIO ADVERTISING (ATL)
▶ NEWSPAPERS (ATL):
▶ SOCIAL MEDIA AND WEBPAGES (TTL)
Newspaper Advertisement Billboard Advertisement

▶ with this we seek to generate emotions, well-being and satisfaction to the

consumers of our target market.
Recommendations

▶ For us it is important to know the process of internationalization of a

product because as negotiators it is necessary to know each process in detail
from manufacturing to the logistics chain

▶ It is essential to know the country that we are going to enter abroad because
each country has variables that make each product must be adapted for
better penetration of the market.

▶ When you enter a foreign country it is important to forge alliances with

retailers that know the foreign market much better than we do, so it is safer
to carry out the internationalization of the product.
References
▶ Population in Canada - 2016 Census -Top CMAs & Cities. (2017). Retrieved from
https://www.todocanada.ca/population-canadas-cities-2016-census/
▶ Canada Population Density People Per Sq Km. Retrieved from
https://tradingeconomics.com/canada/population-density-people-per-sq-km-wb-
data.html
▶ Canadá Distribución por edad - Población. (2017). Retrieved from
https://www.indexmundi.com/es/canada/distribucion_por_edad.html
▶ Valdez, J. (2019). Juan Valdez ® Café Store Organic Coffee - Whole Bean. Retrieved
from https://www.juanvaldezcafestore.com/en/coffee/balanced/whole-
bean/organic-coffee-500-g-17-oz
▶ Principales consumidores de café del mundo. Retrieved from
https://www.infocafe.es/cafe/principales-consumidores-cafe.php
▶ 50 AÑOS Y NUEVA CAMPAÑA PUBLICITARÍA. CONOZCA EL NUEVO ENFOQUE DE JUAN
VALDEZ.
▶ Amazon. (2019). Retrieved from https://www.amazon.ca/Starbucks-Organic-French-
Ground-
Coffee/dp/B07FKB4753/ref=sr_1_6?crid=133TLVRPW87A6&keywords=starbucks+coffee
&qid=1556909575&s=grocery&sprefix=starbucks+%2Cgrocery%2C192&sr=1-6
▶ https://www.merca20.com/50-anos-y-nueva-campana-publicitaria-conozca-
el-nuevo-enfoque-de-juan-valdez/
▶ Logotypes taken from https://www.eleconomistaamerica.com/empresas-
eAm-colombia/noticias/5170125/09/13/Juan-Valdez-Cafe-relanza-su-
expansion-internacional-con-franquicias.html
▶ NM, N. (2019). Tim Hortons no es la marca preferida de café de los
canadienses, según encuesta. Retrieved from
http://nmnoticias.ca/2017/10/24/tim-hortons-marca-preferida-cafe-
canada-2017/
▶ Ebay. (2019). mcdonalds coffe bag | eBay. Retrieved from
https://www.ebay.com/sch/i.html?_from=R40&_trksid=m570.l1313&_nkw=
mcdonalds+coffe+bag&_sacat=0&LH_TitleDesc=0&_osacat=0&_odkw=mcdona
lds+coffe
▶ Raad, T. Retrieved from https://www.perfectdailygrind.com/2017/08/cual-
es-el-costo-exportar-cafe/
▶ worldfreightrates. (2019). World Freight Rates - Calculadora de Flete.
Retrieved from https://worldfreightrates.com/es/freight
THANKS ¡