Cafe de Colombia

CAFÉ DE COLOMBIA

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Under the guidance of Dr. Vimi Jham

Reported by (GROUP 5 SECTION A):-

Abhinav Gupta (12DCP-002)

Deepak Sharma (12DCP-028)

Devneet Bohidar (12DCP-030)

Gaurav Rathi (12DCP-037)

Gorle Narayana Harendra Sagar (12DCP-038)

CASE PROBLEM IDENTIFICATION

The international market prices for Colombian coffee had fallen 35% between 1995 and 2000 reaching about $0.80/lb by the end of 2001. This was coupled with the fact that many other countries were also beginning to increase their coffee production levels. Hence, the main problems facing the Federacion Nacional de Cafeteros de Colombia (FNC) in the US can be categorized as follows:-

❖ How will a continuing advertisement budget cut affect Café De Columbia’s market share in the US?

❖ Would the power of brand be sustained with a drastically lower advertising budget?

❖ How could Café de Colombia further enhance its competitive advantage under the restrictions imposed by FNC’s budgetary limitations?

❖ How to induce young consumers to drink coffee?

❖ How to capture the trend in the US on new consumer habits?

INTRODUCTION OF COFFEE TO COLUMBIA

It is believed that coffee was first discovered by Ethiopians and then by the people of Egypt and Yemen. The coffee was first roasted and brewed in Arabia and it a product from the equatorial region of the world.

The first introduction of coffee beans into Colombia appeared to be by Jesuits from the east, probably coming from Guyana through Venezuela (1730), and later reached the Andean region where it found the perfect temperature and water conditions. By 1835 the first commercial harvest of coffee, consisting of 2560 sacks, was produced. By 1850 the crop was spread throughout the whole area.

Over one half of Columbian Municipalities include coffee in their agricultural activities and it remained as Columbia’s most important agricultural activity. That is the reason why the coffee sector represents up to 1/3 of...