Strategic Marketing - “Bean to Cup” Coffee Machine Manufacturer



[Name of the Instructor]

[Date of Submission]

Strategic Marketing - “Bean-to-Cup” Coffee Machine Manufacturer

Overview of Coffee: A largely Traded Commodity

Among the world's largest traded commodities, a pivotal position is being held by Coffee, that is produced in more than 60 developed nations and is the main consumption in the developed nations providing an over US $ 70 billion of retail sales each year. Coffee export contributes to 10% or more to the trade and economic living condition of at least 14 countries.

Company Overview: Wanshida Coffee Machine (Hangzhou) Co., Ltd

The company occupies an important position in the “bean-to-cup” machines manufacturer in China (Mainland). It was established in the 2006 as an automatic “bean-to-cup” coffee machines manufacturer. The reason for selecting this company is on the basis that the company has standardized quality controls based on ISO-90001 certification, that enable them to meet the customers' needs and specifications. The company has highly skilled engineers that help to offer a range of services to clients. The coffee making machines of the company have already received CCC, CE, GS, RoHs, VDE, EK, EMC, and CB approval-stamps (wsdcoffeemachine.company.weiku, 2007), that will prove to be a value added point in expanding in the international market.

Being an in charge of International Marketing of the company, we plan to launch the organizational products into a foreign market of United States, an arcade to which the company is not currently making any exports. This assignment is categorized basically into three tasks:

Market selection and final destination country (in this case, United States)

Marketing mix strategy for the selected products and the destination combination

Foreign Market Entry Strategy

Task 1: Market selection and final destination country

Wanshida's Bean to cup coffee machines that are also referred to as B2c, are considered as the super espresso coffee machines. These bean to cup coffee machines have a potential that at a single button press, they

Provide fresh ground coffee beans

Tamper the coffee

Fresh milk is foamed to correct temperature

The cup is filled exactly to its right level

The used coffee is automatically cleaned away in the waste area

Market Selection

The market selected and the final destination of Wanshida Coffee Machines will be United States. A number of reasons are associated with this selection that and are highlighted in the points below:

United States is marked with higher consumption of coffee, indicating that the retail value of the coffee market of United States is $30-32 billion dollars, in which the specialty coffee that can best be served with the help of “Bean-to-Cup” Coffee machines comprises of approximately 37% volume share and 50% value share (Oregon Convetion Centre, 2012).

People are becoming more concerned about the way their coffee provides them an enthusiastic experience in least amount of time. Therefore, in such scenario bean-to-cup coffee machines that are also called as automatic coffee makers make a use of the whole coffee bean instead of the ground coffee.

As bean-to-cup machines are fully automated, it can provide the coffee drinker with more fun and ...