Ethiopia is the single largest African producer of coffee with about half of its production going for export. It plays a central role in Ethiopia’s economy and as the country’s leading export is an important source of foreign exchange. The coffee bean export business reserved for Ethiopia citizens. Out of the total number of coffee exporting companies, 93 percent are private companies, 5% are coffee growing farmers' cooperatives, and 2 % are governmental enterprise. The extent to which cooperatives and private, including previous Ethiopian Grain Trade Enterprise (EGTE) now named Ethiopia Trading Business Corporation (የኢትዮጵያ የንግድ ሥራዎች ኮርፖሬሽን) and state farms, play a role in coffee exports from Ethiopia. Currently coffee generates less than 35 percent of the total export earnings. For the last several years its relative predominance in the export sector is decreasing because of increased contribution of other agricultural products like horticulture and floriculture. Consequently, only a little over 26% percent of the total export earnings is contributed by coffee during the year of 2011 (FDRE, 2011). This is the lowest share earned from export of coffee in the history of economy.
Table of Contents
1. What to achieve? How?
2. Preface
3. Marketing Strategy Overview
4. Introduction of Ethiopian Coffee
4.A. Brief History
4.B. Vision and Mission
4.C. Core Value
4.D. Corporate Beliefs
5. The Coffee Global Value Chain
6. Coffee Marketing Strategy in Ethiopia
7. Analysis of Ethiopian Coffee Mix Marketing Strategy
7.I. PRODUCT STRATEGY
7.I.1. Product Segmentation
7.I.2. Product Diversification Strategy
7.I.3. Productivity & Quality:
7.I.4. Packaging
7.I.5. Branding
7.II. PRICE STRATEGY
7.II.1. Price segmentation
7.II.2. Minimize cost through boosting productivity
7.II.3. Comply with international market price
7.III. PLACE STRATEGY
7.III.1. Distribution Channels
7.III.2. Warehouse and processing unit
7.IV. PROMOTION STRATEGY
7.IV.1. Public Relations
7.IV.2. Coffee Museum
7.IV.3. Coffee Festival
7.IV.4. National and International Trade fair and Expo
7.IV.5. Launching of new export promotion strategy
Objectives and Core Themes
The primary objective of this work is to analyze the general situation of the Ethiopian coffee market and apply the 4P marketing mix theory to develop a comprehensive marketing strategy for the Ethiopia Trading Business Corporation for the upcoming 5 to 10 years.
- Analysis of the Ethiopian coffee global value chain and competitive environment.
- Application of the 4Ps (Product, Price, Place, Promotion) for export strategy.
- Evaluation of branding, quality management, and product diversification.
- Strategic planning for distribution, including the role of the ECX and cooperatives.
- Development of promotion strategies through international branding and events.
Excerpt from the Book
5. Branding
Every country is a brand. Some places do a better job at branding themselves to the world than others. Each of us have certain attributes/perceptions that come to mind when we think of different countries: France is “perfumes”, Italy is “fashion and design”, Sweden is “simple and functional design”, Germany is “great engineering”, India is “spices”, Argentina is “tango”, Switzerland is “watches”, China is “low cost manufacturing” what if, if “Coffee’’ is for Ethiopia. This is known as “place branding”. Many brands “borrow” these common perceptions and transform them into differentiating elements that help them compete locally and internationally.
Ethiopia Coffee and Tea Authority should start working on coffee as a global brand of our country because Ethiopia is the original home of the coffee (Arabica) plant. The south-western highlands where they first blossomed, gave its name to coffee. The formal cultivation and use of coffee as a beverage began early in the 9th century. Prior to that, coffees trees grew wild in the forests of south-western highlands and may in the region were familiar with the berries and the drink. Creating a global brand for Ethiopian Coffee presence in one or more international markets isn't cheap or easy. But it is worthwhile for the country, provided you understand the reasons why. Here we spell out what a global brand is. A global brand is one that has a consistent identity with consumers across the world. It can be the use of a name, term, sign, design or combination thereof intended to identify one seller and differentiate it from competitors. All governmental organization, private sector and civil society work collaboratively to identify one unique product/service to represent their country and build brand to get acceptance throughout the world. We believe that due to a number of reasons coffee must be the icon brand of Ethiopia.
Chapter Summary
PRODUCT STRATEGY: Defines the segmentation of coffee products and diversification strategies, emphasizing the transition to high-quality Arabica and processed coffee offerings.
PRICE STRATEGY: Focuses on the importance of cost minimization through productivity and aligning pricing with international market standards to ensure competitiveness.
PLACE STRATEGY: Examines distribution channels, specifically the role of the Ethiopia Commodity Exchange (ECX) and the necessity of improved warehousing and processing units.
PROMOTION STRATEGY: Details tactics for national and international promotion, including public relations, the establishment of a coffee museum, and participation in international trade fairs.
Keywords
Ethiopia, Coffee, Marketing Mix, 4Ps, Export Strategy, Value Chain, Branding, Arabica, Product Segmentation, Coffee Commodity Exchange, Distribution, Promotion, Quality Control, Agricultural Productivity, Global Market
Frequently Asked Questions
What is the core focus of this publication?
This work provides an analysis of marketing strategies for the Ethiopian coffee sector, specifically tailored to the operations of the Ethiopia Trading Business Corporation.
What are the primary thematic areas covered?
The work covers product development, pricing models, distribution channel management, and various promotional activities to enhance Ethiopian coffee's global market position.
What is the main goal of the research?
The goal is to apply the 4P marketing mix theory to create a sustainable, competitive marketing strategy for the next 5 to 10 years.
Which scientific method is utilized?
The study relies on the analysis of collected information from internet sources, mass media, and existing industry reports.
What is addressed in the main body of the document?
The main body breaks down the marketing mix (Product, Price, Place, Promotion) and analyzes how these components can be optimized for the coffee export industry in Ethiopia.
Which keywords define this work best?
The core keywords include Ethiopian coffee, marketing mix, export strategy, brand development, and global value chain.
What is the specific role of the ECX mentioned in the text?
The Ethiopia Commodity Exchange (ECX) acts as a centralized body to standardize and trade agricultural commodities, aiming to stabilize prices and eliminate middlemen in the coffee supply chain.
Why is branding considered crucial for Ethiopian coffee?
The text argues that as the birthplace of Arabica, Ethiopia can leverage "place branding" to differentiate its product globally and command higher value, transforming coffee into an icon brand for the nation.
- Arbeit zitieren
- Researcher Dereje Tesfa (Autor:in), 2019, Marketing mix and strategy for Ethiopia's coffee marketing, München, GRIN Verlag, https://www.grin.com/document/494501
