Case Study: Cafe Campesino

Introduction

The application of marketing strategies within an organization necessitates the employment of essential features that guarantee profits obtained from the delivery of services based on the needs of the customers. Most importantly, marketing concepts within an organization focus on serving a wide range of customer needs, also known as customer orientation, as opposed to the currents products and services, production orientation. They also facilitate the development of methods aimed at attracting customers to current products within the organization, also termed as selling orientation (Peter, Jerome and James 10). Therefore, effective marketing is initiated by the recognition of customer needs but is subsequently followed by the development of products and services that satisfy the customer needs as well as those of the organization. Additionally, marketing functions have the principal task of identifying effective and efficient means of driving an organization towards pursuing the interests of their clients. Nonetheless, the definition of marketing brings about the incorporation of pertinent stakeholders who play a significant role in the achievement of desired goals. This definition entails the process involved in the execution of concepts, pricing, promotion and distribution of ideas, goods and services to create exchanges aimed at satisfying individual and organizational goals (Peter, Jerome and James 11). Therefore, based on these facts, this paper will focus on studying an organization, Cafe Campesino, in terms of the marketing challenges it faces, their importance and alternative solutions. These will be followed closely by the discussion of the actions the company must take to implement the recommendations and the expected results.

Situation Analysis

Environment

The production of coffee involves a myriad of uncertainties that range from unpredictable market trends to the quality or yield of the harvest. In most cases, these uncertainties extend to the various organizations which specialize in selling coffee thereby affecting their operations and profits in the long-term (B Corp Community 2). For instance, the Cafe Campesino entails one of the organizations renown for supplying the best specialty-grade, gourmet coffee across the United States. Their clientele ranges from co-ops, coffee houses, natural food markets, fundraising groups, and restaurants. Most importantly, their operations in the distribution of their products are conducted online through their retail services as well as on a wholesale level (B Corp Community 2). Additionally, the Cafe Campesino has expanded their operations through the establishment of an affiliate company, Cooperative Coffees, which specializes in the importation of green coffee based on an alternative and fair trading relationship between the farmers and roasters.

The Industry

According to research, the food manufacturing industry in the United States comprises of more than 20,000 organizations which bring about annual revenue amounting to $760 billion. The Bureau of Labor Statistics, in their 2015 report, pointed out that states such as California have approximately 3,700 food manufacturing companies which employ more than 14700 people (Kolk 188). Nonetheless, despite these achievements, research indicates that the high competition within the industry drives companies towards becoming efficient and updated with emerging trends in nutrition and consumer preferences. Most essentially, it facilitates the understanding of the challenges as well as the opportunities within the industry and in the market. Most of the competition within the industry emanates from the wide range of products which include coffee and tea, soft drinks, bakery goods, milk, just to mention but a few. Similarly, the revenue obtained in this industry emanates from the increase in demand brought about by factors such as consumption, consumer tastes, preference and disposable income as well population growth (Kolk 189). Nonetheless, the profits obtained by each company are highly dependent on the effectiveness and efficiency in running their operations. Additionally, the stiff competition in the food and beverage industry throughout the United States has driven manufacturers towards developing similar alternative products for their consumers. This competition brings about various challenges which eventually lead to manufacturers lowering their prices and seeking other methods that would make their products and operations unique.

The Firm

Some of the challenges prevalent in the food and beverage industry are characterized by forces such as technology that requires manufacturers to have the ability of prototyping, testing and launching new products in order to remain relevant. Moreover, the products launched have to accommodate consumer trends as well as their tastes and preferences. The use of technology and other procedures necessitates the adoption of automated processing, baking, canning, freezing, and packaging of healthy products (Ortiz-Miranda, Dionisio and Ana Moragues-Faus 44). However, in the 21st century, almost all companies have adopted technology in their operations thereby making it an input resource that boosts the level of output. For instance, the Cafe Campesino employs technology throughout their operations with the aim of ensuring efficiency and effectiveness in the production of the final manufactured goods. Technology helps the company to produce a wide range of products such as coffee house beverage supplies that include certified compostable cups, smoothies and frappe bases, syrups, among others (B Corp Community 4). The focus on these strategies and the differentiation of their products emanates from the drive to remain unique and to draw the attention of the consumers. It also serves as a strategy aimed at boosting the companys relevance and competitiveness against companies such as Starbucks within the industry.

The other challenge affecting the food and beverage industry entails seasonal crops and regulations brought about by government institutions. On the one hand, seasonal crops affect the industry through lack of predictability on the expected produce and harvesting schedule specific to the crop (Ortiz-Miranda, Dionisio and Ana Moragues-Faus 46). For instance, the production of coffee is faced by various challenges that range from low wages to the farmers, pests, diseases and fungi, fluctuation in prices and unreliable incomes and limitation in the ability to value coffee. These are followed by changes in the climate, shortage of labor just to mention but a few. Moreover, since Cafe Campesino specializes in the production and distribution of specialized-grade and gourmet coffee, the limitation in the ability to value it among the producers largely affects the organization as well as the consumers. For instance, when the producers fail to value their coffee, it brings about challenges in the improvement of farming methods as well as negotiations with buyers. These challenges may compromise the value of the coffee delivered to resellers and in turn affect the final product (Ortiz-Miranda, Dionisio and Ana Moragues-Faus 46). Nevertheless, the Cafe Campesino has managed to surpass some of these challenges through the implementation of appropriate strategies such as the establishment of an affiliate organization that specializes in the importation of green coffee. This company employs fair and alternative methods of acquiring the product through the creation of trading relationships between the farmers and the roasters (Ortiz-Miranda, Dionisio and Ana Moragues-Faus 47). The Cafe Campesino is also a member of the Fair Trade Federation and Georgia Organics which allow it to source for quality products necessary for the processing and manufacture of desired products based on the taste and preferences of their customers.

Marketing Strategies

Besides, to remain relevant and competitive with other companies in the industry, Cafe Campesino has employed different strategies in marketing their products. Some of these strategies include the adoption of technology in reaching out to more people on retail and wholesale prices (Peter, Jerome and James 14). These marketing strategies allow the company to supply quality artisan-roasted specialty-grade coffee to individual coffee houses, restaurants and other organization throughout the United States. Most importantly, the company focuses on marketing products that are accurately processed thereby accentuating their commitment to their customers. For instance, some of the goals applied in their operations include the provision of competent, friendly and personal services, assurance of accuracy and promptness in the delivery of their products and efficient application of necessary measures (Peter, Jerome and James 14). For instance, in a bid to remain competitive, the company ensures that orders placed online for their products are shipped within one business day. These are followed closely by the application of rigorous quality control measures that from the crop to the final product. The achievement of these factors occurs through the creation of a good relationship with their customers based on honesty and transparency.

Problems Found in Situation Analysis and their Importance

The implementation of marketing strategies within an organization necessitates the application of various concepts designed to get the product to the market. It also involves the utilization of techniques such as packaging and promotion as well as the establishment of solid foundations in the market, which requires spending huge amounts of money in educating consumers on why they should consider purchasing the products (Kolk 189). Some of these techniques include diversification which refers to the use of different techniques in seeking new products for customers currently not being served by an organization. For instance, a manufacturing company may diversify into real estate development or a cosmetics company into a baby-care products organization. According to research, theorists such as Michael Porter developed a structure through which organizations may strategize and devise ways of gaining a competitive advantage over others. This structure points out the importance of organizations to begin by analyzing the industry and then develop a cost leadership strategy or one based on differentiation (Kolk 189). On the one hand, organizations which employ a cost leadership strategy focus on operating under the lowest expenditure. They seek efficiency through offering standard products, effectiveness in the design, manufacture, distribution and the use of technology in their products. The achievement of success among these organizations necessitates the continuous strive to become cost leaders in the industry as well as the market segment (Peter, Jerome and James 15). Nonetheless, it is mandatory for cost leader organizations to offer products or services that are acceptable to consumers when compared with to those offered by their competitors.

On the other hand, the organization may seek a competitive advantage through the differentiation of their products. The implementation of a differentiation strategy allows organizations to remain unique in the industry or market segment based on some dimension valued by their customers. Some of these dimensions include design, quality, service, and variety of products, brand name, among others (Peter, Jerome and James 16). Additionally, based on the uniqueness of the products within these organizations, they can charge a premium price. Most importantly, the selection of an appropriate marketing strategy necessitates consideration of the organizations mission statement and goals. The management team within the organization should focus on selecting the strategies consistent with its missi...