Market and Industry Changes
The global food and beverage market is dominated by the retail sector that is greatly fragmented (Zintro, 2011). The retail market is thus growing due to emerging consumer trends, such as the increased need for convenience, casual dining and the demand for fresh and natural foods. This market sector would prove invaluable for Kopi Luwak as it seeks market entry in the larger beverage industry. Kopi Luwak faces stiff competition from well established brands, such as Braziliano coffee and Pernigotti 1860. Braziliano coffee boasts of an irresistible aroma and boasts of a roasting perfection, especially in the Australian market (European Brands, 2011). Pernigotti 1860 has always focused on exceptional quality as its tradition.
Espresso coffee also poses as competition to Luwak due to its thicker consistency and affordability. Espresso brand is the base for other drinks, such as cappuccino and has more caffeine per unit than other coffee brands (European Brands, 2011). Kopi Luwak needs to focus on emerging trends characterizing the beverage industry. In the recent past, focus has been put on upsizing volume packages (Zintro, 2011). Although the beverage is produced in small amounts, upsizing its units would drive profits up.
In addition, growth in the beverage industry is promoted by enhancing the functional benefit. Kopi Luwak would be enhanced by incorporating healthy ingredients in its products. As such, Kopi Luwak may be bought by healthy drink companies, especially if innovation on improving healthy ingredients is infeasible (Zintro, 2011). Relaxation beverages continue facing increased demand as consumers seek to combat stress. Kopi Luwak, being a coffee brand, would benefit by utilizing such ingredients as valerian root and L-theanine (Zintro 2011).
Kopi could also be enhanced by incorporating other ingredients that address such wellness concerns as immunity, digestion, longevity and mental activity (Zintro, 2011). Kopi Luwak’s core business would also change by expanding into new brand categories, such as pastry and ice cream products. This is because it would prove dangerous to limit resources to one category as the industry is consumer driven (European Brands, 2011). In addition, Kopi Luwak would benefit from focusing on underdeveloped markets, such as Asia and Africa. This is because the emerging middle class gives rise to consumerism in such markets hence beverage growth (European Brands, 2011). It would take some time for the middle class in the developing markets to refine its brand loyalty towards healthier alternatives.
Kopi Luwak would also benefit from the current perception that natural coffee is better. In its marketing strategy, the company would focus on stressing on the natural production process of Luwak coffee beans, which undergo in order to win consumers among coffee enthusiasts (European Brands, 2011). This would also ensure that the brand retains its market share.To counter competition in marketing its products, Kopi Coffee Company would consider selling its products through destination bars and restaurants (Zintro, 2011). This is because hotels have resources to push for innovation and reinvention.
Quality authentic coffee gives a relaxing experience among coffee lovers hence destination bars. Additionally, such bars are preferred for their incredible service (Zintro, 2011). The decrease in the civet’s population in whose digestive system the Kopi coffee beans are fermented has led to the exploration of alternative ways to imitate kopi luwak&rrsquo;s taste (Nick, 2011). Research and technology has facilitated imitation of the beans’ taste without civet’s involvement. This will also ensure that the brand is produced in large quantities, hence lowering the cost.
Subsequently, the brand can be produced and distributed at a price competitive enough to ordinary quality coffee (Nick, 2011). The above operation efficiencies would ensure that Luwak achieves and maintains a strong brand position. This would ensure that the brand achieves a competitive edge at a time when competitors in the industry would be forced to pass price increases on consumers and consequently disappear (Zintro, 2011). Additionally, discounters are a growing trend. Luwak manufacturers hence need to lower the prices of its products in order for retailers to sell the coffee at discounted prices.
Selling the product through powerful and influential retailers would ensure their marketing and product management skills are applied on luwak coffee and its product line (Zintro, 2011).Government regulations in different countries of operation need to be put into consideration in marketing the brand. Such factors, as freedom of operation, taxation rates, ease of entry and exit among other factors, need to be considered as the company diversifies to new markets (Zintro, 2011). The uniqueness of Kopi Luwak’s production is a key selling point for the brand. Premium and value comprise the service component of the brand that enhances its marketability.
The length and breadth of Luwak’s product line would be enhanced by exploring other options through research and technology. Subsequently, the brand can counter competition by exploring cheaper ways of production and marketing channels.