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 dropped recently which requires a more efficient and innovative marketing strategy. Changing US market and consumer preferences for coffee and increased global competition increase pressures for alternative corporate solutions which will open the way ahead.
2. Situation Analysis
In order to differentiate Colombian coffee products from other producer’s items, in 1960, FNC introduced a fictitious character of Juan Valdez to represent a typical coffee producer and trademarked this name. The high quality, mountain-grown coffee beans were easily recognized through the Café de Colombia brand. Many of the producers adapted this logo. In 1982, further action was taken with the 100% Café de Colombia Program which targeted end consumers in order to create more awareness. Both of these marketing strategies made FNC successful, increased the sales of Colombian coffee products, and made their products priced over the average market price. In today’s new global challenges there are a number of issues that FNC should address for. First of all there are numerous strengths as: High quality products and very effective production and quality control monitoring Very strong brand image that is 85% logo identification of Juan Valdez in the US and...