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The 10 Rules for Success with Finished Products in Europe Jeroen Kruft Amigos International / CBI consultant
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1. HIGH INTRINSIC QUALITY
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12 INTRINSIC QUALITY - Taste, structure, etc. - Coffee: grinding spectrum - Appearance (coffee: beans!) - Maintain freshness by good packaging
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2. ATRACTIVE PACKAGING
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3. CERTIFICATION(S) Certificaciones
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B2B and B2C Certifications 21
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‘Harvested by Women’ - Boyd Coffee Company – March 2014 Centre for the Promotion of Imports from developing countries | 22
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23 FREE TO USE: download application form at: http://www.amigos- international.org/certifications/pico-standards/ ‘P.I.C.O.’
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24 Marketing ‘P.I.C.O.’ Coffee as ‘Fair trade 2.0’
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Conventional coffee Source: Max Havelaar foundation Only 20% goes toward the southern country
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Fair trade coffee: provides a better price for farmers… a good start! Source: Max Havelaar foundation 35% goes toward the southern country
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Escoffee: fair trade price, organic certification and local processing! Source: Escoffee calculations; available to anyone on request. 53% goes toward the southern country
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CAREFUL WITH GREENWASHING! NESTLÉ (KIT KAT) 28
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4. (Other) UNIQUE SELLING POINTS
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Ecological Transport 30
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Ecological Packaging 31
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Ecological Packaging 32
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Origen / traceability Centre for the Promotion of Imports from developing countries | 33
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Innovative tastes / structures 34
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Healthier 35
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Healthier 36
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Environment 37
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Ambassadors 38
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Summary possible USP’s 39 -ENVIRONMENT (BIODEGRADABLE PACKAGING, PLANTING TREES, CO2 NEURTRAL, ORGANIC, ETC.) -SOCIAL (CHILDREN, EDUCATION, FAIRTRADE, ETC) -HEALTH (SUPERFOODS, RAW, LOW FAT/SUGAR, ETC.) -TASTE (NEW FORMULAS) -NOSTALGIA (SAILSHIPS, ARTISAN/HAND-MADE, ETC.)
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5. DOMESTIC SALES
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41 DOMESTIC SALES -Experience (sales of retail productss very different from bulk sales!) -Product development -Get working capital
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6. COMPETITIVE PRICE
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43 Pricing Make a good cost price calculation Get reference prices in target markets See if there is enough margin for the chain in between!
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44 Margins Importer / distributor (20 - 30%) + Wholesaler (20 – 30%) + Shop (25 – 45%) + VAT (different in various EU countries) Reference prices coffee (250gr): Supermarkets: EUR 3,50 FOB $ 2.00 max Organic shops: EUR 5,00 FOB $ 3.00 max Gourmet shops/dept. stores: EUR 6,50 FOB $ 4.00 max
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Centre for the Promotion of Imports from developing countries | May 27, 2010 45
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7. LONG TERM COMMITMENT
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47 LONG TERM COMMITMENT -How to manage shipping small quantities in the beginning? -How to manage promotion costs? -At what point do you reach BREAK-EVEN?
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8. STRATEGIC PARTNER
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49 STRATEGIC PARTNER -Get (a) person(s) that can promote your coffee in Europe – preferably a European (culture, language) -Consider giving your strategic partner participation in the company (shares)
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9. LOGISTICS
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51 LOGISTICS -Just in time -Lead time? -Best Before dates: Wholesaler needs 1 year + Shop needs 6 months +
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10. COMUNICATION
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53 COMMUNICATION AND PROMOTION -Know your languages -Email: respond within 2 days max! -Help your client at European trade fairs -Give your client relevant and quality promotional toos and information
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54 Support for your client: -Professional brochures -High resolution photos -Videos -Multi-language website -Technical spec sheets -Free samples
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EXERCISE: MAKING AN ACTION PLAN FOR YOUR COMPANY
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56 RULEDEFICIENCYSOLUTIONACTIONTIME 1.HIGH INTRINSIC QUALITY 2. ATRACTIVE PACKAGING 3. CERTIFICATIONS 4. USP’S 5. DOMESTIC SALES 6. COMPETITIVE PRICE 7. LONG TERM COMMITMENT 8. STRATEGIC PARTNER 9. LOGISTICS 10. COMUNICATION/ PROMOTION
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