EM - cafe de colombia - Problem: The image of Juan Valdez...

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Problem: The image of Juan Valdez and his trusty mule has long become synonymous with the rich aroma and superior taste of Colombian coffee. The Colombian coffee industry is primarily represented by the Federacion Nacional de Cafeteros de Colombia (FNC), which has prided itself in successfully branding and differentiating a commodity that not only resulted in a premium in the world market for Colombian coffee, but has also improved the image and quality of life for the entire country. However, during the mid 1990s, Colombian coffee producers were faced with rising competition, increasing supply and changing trends, leading to rapidly decreasing prices in the world market for coffee. Profits were quickly eroded and by the turn of the millennium, concerns were raised regarding the long run sustainability of Colombian coffee producers. The underlying problem faced by the FNC and Colombia’s coffee industry is marketing and positioning Café de Colombia so as to maintain a profitable margin despite dwindling market prices, increasing competition, shifting industry trends, and a decreasing marketing budget. Situational analysis Political: While Colombia has enjoyed constitutional stability in the 20 th century, there still remained guerrilla activity and internal conflict, which became a rampant problem in the 1990s, causing many rural families to relocate to cities. This led the Colombian
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This note was uploaded on 01/20/2009 for the course AEM 4420 taught by Professor Christy,r. during the Fall '06 term at Cornell University (Engineering School).

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EM - cafe de colombia - Problem: The image of Juan Valdez...

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