Case Study Analysis and Solutions

Case ID: 513090

Abstract:
Case Solution & Analysis for Juan Valdez: Innovation in Caffeination by Michael I. Norton, Jeremy Dann
Corporate entrepreneurs attempt to revive Colombia's famous Juan Valdez brand in the age of Starbucks, with café chain and packaged coffee ventures. In the 1970s and '80s, the iconic Juan Valdez ingredient brand was the most recognized in the world of coffee. The success of advertising based on this character garners the Colombian coffee industry price premiums in international markets, especially the US. By the 2000s, Colombia's coffee sector is being battered and its branding power diminished as café chains such as Starbucks increasingly capture profits in the value chain. In reaction, Colombia's coffee federation develops a semi-independent, for-profit branding arm - Procafecol - to rebuild the Juan Valdez brand. Procafecol launches the first Juan Valdez cafes and a packaged coffee line, putting Colombian coffee into competition with many of its traditional customers. The case examines the successes and failures of the first five years of the new strategy, encouraging discussion of what changes must be made to Procafecol's innovation program.

Keywords:
Branding, Corporate strategy, Entrepreneurs, Entrepreneurship, Global business, Innovation, International business, Inventions, Marketing, Organizational change, Retail, Sales, Strategy, Juan Valdez Innovation in Caffeination Case Solution

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