Juan Valdez is a Colombian company that is making great effort to positionate its products in numerous countries. Taking advantage of the good name of Colombian coffee, Juan ValdezCo. decided that it was time for a Colombian enterprise to do what so many foreign companies were trying to do. It was time to establish a national brand that could be recognized around the world bybeing the one behind all the process and offering a unique quality that could only be reached by a Colombian company.
Understanding the existent differences between cultures and markets, developingeffective strategies depends in great proportion of a correct analysis of the marketing mix: Price, product, place, and promotion.
* Price :
We can define Juan Valdez pricing strategy as aprice skimming because of the competitive advantage that it has against its competitors. In the local market the company offers prices that are directed mainly to medium-high and high social status.Although prices can change between the products offered by Juan Valdez Café according to the quality of those, the economic class of the target remains the same in the local market.
When the companydecided to enter to new markets in other countries as United States or Spain, it preferred to use a penetration pricing in order to be competitive with international enterprises as star bucks that hasbeen in the international market for a long time. Reducing the prices of its products it’s a common way to reach new costumers when the bargaining power of competitors is big.
* Product:Understanding the three existing levels of a product (core product, actual product, augmented product) it can be said that the competitive advantages of Juan Valdez are located in the actual product. Becauseof the superior quality of the coffee offered by the company and that is reflected on its taste, smell, and color.
Because of the variety of climates and topographies in Colombia Juan Valdez has...
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