Compared to supermarket coffee, Cafe Britt is much more expensive and a “premium” product. As we were told today, coffee that is sent to supermarkets throughout Costa Rica are the second and third grade beans. The first grade beans are exported to other countries. Many Ticos probably don’t want to spend a lot on their coffee when they can get a slightly less superior product for a significantly lower price.
Doka coffee is a producer. In order to create the perfect product, they must cultivate their plants to resists insects and biological threats that can damage the product (rust). In the supply chain, Doka is at the top of the chain as the supplier’s supplier. Sending their raw product to companies like Cafe Britt, who roasts and markets the product. Cafe Britt is considered a supplier/manufacturer. In an effort to create and market their coffee directly to consumers, they skip the middle man and go straight from supplier to customer. They don’t need to use whole sale markets like Walmart and Costco. Cafe Britt creates a culture of their own and sells the experience to consumers, but also creates their products to sell through research and development.
Cafe Britt isn’t afraid to try new things. This means that they have their branding on many different products. Right now, Cafe Britt is selling and creating more products with chocolate than coffee. My group’s topic is selling, which Cafe Britt does a lot of. They are doing a lot of work to spread out in Latin American countries. During our presentation at Britt today, we were told that they tried to put a store in Miami, but in this business, it’s all about location. They had to close that store because they were being beat by the competition. Cafe Britt does a lot of market research by sending their people out into the world and study the culture of the perspective store locations. After studying the culture, they take the elements that stand out most and combine it with their own flair that makes it Cafe Britt. They create an atmosphere in their stores that reflect their customers in the lands that they’re selling to. This welcomes perspective customers in and creates an experience that cannot be replicated online.
As far as their market research, I believe they’re doing it perfect. Sending people to new store locations is a great way to understand and discover the culture of the land. Also, creating their own branding and Cafe Britt culture, makes their products and services memorable to their business partners and customers. One thing I would change is their cafe approach. The reason why stores like Starbucks succeed is because of their atmosphere and experience. Connections between employees and customers are what drive business. In their retail stores, Cafe Britt has their atmosphere nailed. It matches the demographic shopping at their store, but also adds the extra flair that tourists crave. But with their lack of cafe’s, they are missing that extra piece to sell their product. It’s one thing to sample the product at their store, but it’s another to sit down at one of their cafe’s and have a conversation with an employee who prepares your beverage and chat with friends. Many people these days don’t mind paying for their coffee by the cup at cafes. This is why I believe they didn’t succeed in North America.