Campos Coffee Marketing Mix Strategy Report

Introduction

Marketing mix refers to a combination of product/services, price, place, and distribution. A marketing manager of Campos Coffee can have control of these four factors subject to external and internal environment factors. Campos Coffee has to make decisions regarding its products and services (Antony 2008, p. 58).

Products/Services

Products refer to anything tangible or intangible offered to customers for purchase, acquisition, and attention. This includes the physical objects, places, ideas, services, and personality.

Campos Coffee offers products such as Campos Coffee Superior Blend, Clever Coffee Dripper, Kenya Wamuguma Pea berry, Papua New Guinea, and Panama Esmeralda Special.

This shows that the company has done enough research and found out what their customers want in different countries and it has enabled the company to produce products that are tailor made for that particular market. There is good branding of the products.

This appeals to customers and helps them meet their preferences and consequently, get value for their money (Antony 2008, p. 98). The products and services target the high-ended and the low-income customers.

Campos Coffee has made its products and services accessible to customers in different places through its online purchasing platform. Campos Coffee should offer products that are low in prices and quantities that are different.

Customers expect to get unmatched experience from it services such as the Cupping Experience, which enables customers to enjoy coffee tasting sessions, learning about the background, and processing of coffee table. The company has strategically positioned its products to beat its competitors.

The Porter’s five forces model of the Company Analysis (Andreas 2009, p. 61)

Threat of entry by competitors

There are potential entrances into every industry. Campos Coffee may make use of the following strategies;

• Product differentiation
• Capital requirements
• Reputation and goodwill of the company
• High industry standards that the company has set
• Use of low costs
• Taking advantage of its large economies of scale
• Campos Coffee should use its strong channels of distribution
• It should switch costs to buyers

Where the economies of scale are sufficient, Campos Coffee may reduce its prices significantly to preempt the entry of a new comer (Andreas 2009, p. 66).

Bargaining power of buyers

In this industry, buyers exact a considerable amount of influence on the level of competition and strategy development. This happens under the following conditions,

• There are few buyers in the market
• Campos Coffee has not differentiated its products
• The differentiation of Campos Coffee’s products is easy.
• Campos Coffee should emphasis on the importance of their product to the buyer
• It should emphasis on the volume of purchases made by buyers
• It should develop strategy to stop buyers from switching to other products.

Bargaining power of suppliers

Suppliers exact pressure on competition and strategies developed in the industry where,

1. There are few suppliers
2. There are few substitute products
3. The products are highly differentiated and cannot be differentiated
4. Campos Coffee should emphasis on the importance of the industry to suppliers.
5. Suppliers’ notification of the importance of their input to customers

Threats of substitute products

The extent to which substitute products exist will affect the intensity and dynamics of competition. Substitute products are those products that fulfill similar purpose to consumers.

The company should examine the relative prices of the substitutes and reduce their own prices. The firm should also improve the quality of their product to prevent customers switching to substitute products (Richard 2000, p. 27).

Rivalry among existing firms

Campos Coffee faces stiff competition where;

1. There are numerous and equally balanced companies and therefore, Campos Coffee must compete aggressively to survive.
2. There are similar companies offering similar products, they are of same size, and therefore, Campos Coffee must distinguish itself from the rest.
3. There are diverse competitors in the market.
4. The industry is slow and companies must work hard to maintain and improve their market share (Richard 2000, p. 14).

List of References

Andreas, S 2009, Porter’s Five Forces Framework, Grin Verlag, New York.

Antony, H 2008, Understanding Strategic Management, Oxford University Press, London.

Richard, S 2000, Marketing, Barron’s Educational Series, London.