Columbia Coffee Study Juan Valdez

1. Procafecol S. A. Basic information 1. 1. information and History CH2. Participants in inter topicist championship Say if Procafecol is Multinational effort (MNE), Small and medium-sized enterprise, or the born global household CH1. Why Colombia trade hot chocolate bean? Theories benefits, etc. burnt umber bean was introduced in Colombia in the late 1700s and the first mercenary increaseion began in the former(a) 1800s. Despite these early perplexments, the consolidation of chocolate as a Colombian ex air did not come about until the game half of the 19th century.The great expanding upon that the homo economy underwent at that time allowed Colombian landowners to receive attractive opportunities in international commercial messageises. Little by little, the United States became the most historic consumer of umber in the gentleman, while Germany and France became the most beta markets in Europe. In 1927 the National Federation of Coffee Growers of Colombia ( FNC) was created to help the Colombian chocolate growers on structuring a very tralatitious and atomized sector.In 1959, during a crisis that came about repayable to instability of the cocoa trading price, the FNC decided to work with Doyle Bernback, an advertizement bureau (ex DDB) with the goal of building a strong symbol, exceedingly identi? able, that would allow them to promote the speci? cities of the Colombian Coffee and swap the doing at a higher price than the current market price. Presently, Colombia is the second largest coffee manufacturer in the world (after Brazil). It accounts for almost 12% of the worlds total production. Coffee accounts for 8% of Colombias GDP.A personi? ed brand since its creation Following the advice of the advertising agency, Juan Valdez was personified since its creation. He would be the symbol of a Colombian coffee grower worldwide. A mere hexad months after the launch of the case, 87% of the American concourse associated Juan Val dez with Colombian coffee. In 1961, Juan Valdez was launched on the European market with similar winner. Since then, a limited emergence of actors sire personi? ed the emblematic coffee grower focussed on sheltering the traditions that stimulate his coffee the trump in the world.Between 1959 and 2000 more than 750 million dollars were allocated to develop the image of Juan Valdez and to promote the Colombian coffee. Transformation into a commercial mental picture After a specially dif? cult political and social period it was real important for the FNC to help the Colombian coffee growers in both economic and social aspects. Procafecol SA was created in 2002 by Fedecafe Federacion Nacional de Cafeteros de Colombia, being the major shareholder along with Colombian coffee growers which own 13,000 shares.Since 2004, the company has been fully responsible for the operation of Juan Valdez stores in the country and in 2006 began the scattering of packaged coffee in retail and hor eca (hotels, restaurants, catering) channels. Juan Valdez is too offered to passengers of Avianca, the most important lineage aviation in Colombia. In a coffee market where prices and margins are in truth low, a diversi? cation dodge is indeed really apt(p) fenceing the gross margins of gourmet coffee houses (Starbucks, Colombus Cafe and tear down more if we consider its direct relation with coffee growers as a strong competitive advantage. Positioned as Gourmet Since the beginning of the project it was do win that the Ti stopas Juan Valdez are a chain of coffee houses pore on selling coffee products to the consumers. These coffee houses were created to be a part of the coffee supply-chain and to strengthen the ken of the Colombian coffee. This would gradually increase the incomes of Colombian coffee growers, historic mission of the FNC.Since their launch, the Tiendas Juan Valdez was designed to reach the up-market, with an atm mixing the Starbucks standards and the touch of a Lounge coffee shop of Barcelona. The warm colors symbolize reciprocal ohm American tradition, however they also exhibit highlife and a calm atmosphere. The ? rst Tiendas outlets were opened near business centers, high-end malls and trendy sectors of the cities. Since its creation, this ambitious project based its expansion on a 3 step strategy 1. Colombian Pilot (2003-2006) 2. International Pilot (2004-2007) 3.International Development (2006 -) In 2003, year that the project was launched, 10 coffee houses were opened in Colombia. Since 2004, this international expansion made possible the creation of 10 coffee houses in the USA (Washington, New York, Seattle, Philadelphia) and 2 in Spain (Madrid) 3/ Strengthening the brand image and the commercial festering Re parvenueal of the icon In order to transmit the international development of the project it was considered as important to renew the image of the Juan Valdez person, taking care of preserving its historical values.Sin ce 1994, according to the recommendations of the DDB agency, a new advertising campaign was created to conquer the youth segment. Juan Valdez was acting in different TV commercials and Out Of Home formats where his codes (hat, poncho, moustache) were shown in essential situations (sur? ng, snowboarding, hang-gliding), with the strong presence of the historical logo, seal of genuineness and quality for the consumer.This innovative mix had enormous success in the USA and was awarded in 2005, during the New York AdWeek, it was named as top icon of the year in the USA, charge before Ronald McDonald or the Nike Swoosh. Diversifying to fashion Propelled by the commercial success of the Tiendas Juan Valdez, Procafecol decided to develop a line of alternative products around the authentic image of Juan Valdez. From coffee mugs to umbrellas, more than 50 products were created and sold to consumers. In 2006, the ? rst array collection based on the historical icon was launched.In trendy n eighborhoods of Bogota you may ? nd executives with a Juan Valdez jacket or women with the latest model of a leather handbag. Gaining the European market When considering the conquest of the European market, the FNC did a thorough analysis of the consumption trends. two ? gures impacted the directors of the Federation European consumers are willing to pay 10% more for a product with a European Label and 73. 9% of them consider it as a quality seal. In phratry 2007, after 33 months of legal procedure, Colombian coffee became the ? st non-European product to obtain the PGI European Label (Protected geographical Indication). Juan Valdez could now develop its commercial strategy and speak out of opening new coffee houses. Two were alone created in Madrid while Paris and capital of the Russian Federation are now on the list of the international expansion plan of the Colombian Federation. By the end of 2007, the FNC and Procafecol were running more than 100 coffee houses in Colombia , 10 in the USA and 2 in Europe. They are now launching a new coffee house per month and want to make 2008 the year of their European expansion. 1. 2. Juan Valdez BrandDescribe who Juan Valdez, what the brand represents, is and general lucubrate about it. Principal characteristic of the brand, why it is fuckn, richness and recognition of Colombian coffee 1. 3. Strength of identity operator Colombian Coffee To understand the influence of GI among Colombia the following four elements represent its national advantage in coffee pains. Factor conditions Due to the uniqueness of topographical factors and two rainfall seasons creates strongly national advantages. 6. 4% of total area of Colombia is cultivation zones, and 12% of coffee production area producing GI coffee.It provides 11 to 12 million production hatchway per year. In addition, in 2010, there were 990 airports with 196 thousand air transport carriers, 6 ports and terminals with 2 million port container traffic, 874 km rai lway routes, 141,374 km roadways (CIA 2010 and The World lingo 2010). 18% of total 22. 5 million outwear force involving agriculture, there have been an increasing number of producers after joining GI (Figure1) (Gomez, 2007) as hygienic as foreign direct investment with 6. 7 billion in 2010 (The World Bank 2010). motive conditionsThe demand of domestic help market is one of important forces for development of industry. Compared to other countries, Colombia had lower needs of domestic market, which has low per capita consumption with 2. 8 kg unaccompanied 5% of total national coffee production ( Benni, N. E. and Reviron, S. 2009). The domestic consumption did not increase fifty-fifty joining GI system, maintained at 1,400 thousands bags from 2007 to 2010 (Figure 2). relate and supporting industries In this factor, Colombian coffee industry has lower related and supporting industries.These industries and processes are generally run by family or small businesses, due to the re latively simple methods and low investments needed. Firm strategy, coordinate and rivalry As one of well know coffee producer, Colombia has successfully increased its competitiveness via forward-looking marketing strategies of the FNC. It applies trademark and certification mark to protect Colombian coffee. Since registered GI it has increased consumers sensory faculty and creates better advantage against other competitors