Coffee_Production_across_the_world_.pptx

Coffee production

1. Coffee Brand or Plantation Name: Date:

2. Introduction Coffee as a potential export product within the framework of the trade policy Coffee is an important commodity in the world economy, accounting for trade worth approximately US$ 16.5 billion World production in coffee year 2010/11 is estimated at 131 million bags (7.8 million tons) While consumption in calendar year 2010 is estimated at 135 million bags (8.1 million tons). Present work will focus on country screening and theoretical basis of export decision within a country

3. Coffee Production in Sri Lanka Sri Lanka is famous for its Coffee cultivation In past, it was wiped out by coffee rust fungus Modern cultivation system is free from fungus issues which increased coffee demand in international market. Local coffee brands are exporting coffee and tea in various geographical segments Local brands are serving excellent home grown coffee

4. Possible Countries to Export

5. World map of Coffee Consumption Worldatlas.com shows coffee consumption (Kg per person) annually (Worldatlas.com, 2019) . Country Norway Iceland Denmark 12 kg 9.9 kg 9.0 kg 8.7 kg Finland

6. Coffee In Finland National average consumptions of coffee 12 kg per capita consumption of coffee On regular basis Coffee breaks Workers unions Special occasions Post church luncheons Popular coffee in Finland is different with variation on Turkish style

7. Coffee Consumption in Finland By Years 2016 2015 2017 2019 10.5 kg per capita 10 kg per capita 9.6 kg per capita 9.9 kg per capita 9.9 kg per capita 2018

8. Coffee Consumption in Norway Coffee consumption in Norway 9.9 kg per capita Kaffee is served black Coffee is served with Cakes and pastries Average drinking rate is 2 cups of coffee 36,472,000 kg in 2012 Rural Norway Cocktail that is weakly brewed coffee Coffee with moonshire and vodka

9. Coffee Consumption in Norway By Years 2016 2015 2017 2019 9.9 kg per capita 7.2 kg per capita 6.8 kg per capita 6.9 kg per capita 6.5 kg per capita 2018

10. Country Screening

11. Import of Coffee Brazil Colombia Kenya Ethiopia Finland Finland import coffee beans and ready to use coffee from many countries around the world. Roasted coffee and coffee beans are imported from Kenya, Ethiopia, and Colombia. Retail prices for the import of raw coffee material is €30 per kg to €67.70 per kg Coffee import is increased from 69,000 tons to 80,000 tons from 2012 to 2016 (finnpartnership.fi , 2019) .

12. External and Internal Environmental Analysis Internal and external environmental analysis shows competitive strength of Finland coffee market. Internal analysis of local brands (in Sri Lanka) shows that local brands are capable to deliver high quality coffee ( Fifield , 2012) . Sri Lankan coffee beans are world famous because of quality and taste. Currency rate differences are also source of attraction for local brands

13. PESTLE analysis of Coffee export in Finland is presented below : Political Factors: Political situation of Finland is stable. Political relations between Sri Lanka and Finland are friendly. Political policies are supportive for international trade ( Baker & Hart, 2016) . 2. Economic Factors: GDP per capita is improved from 24,000 to 45,703 USD in 10 year duration. Inflation rate is decreased is 0.84 in 2017. Consumer spending is increased to 277730 from 27482 in 2019. Thus economic condition is suitable for trade with Finland. Social Factors: In Finland coffee consumption trend is inclining. Population growth and tendency towards coffee products use indicate potential for new investors and export companies to export coffee in Finland market. PESTLE ANALYSIS

14. 4 . Technological Factors: Technological factors are in favor of Sri Lankan local brands. Brand positioning and marketing is possible in Finland by social media and modern digital marketing system. E-commerce platforms can be introduced for export of coffee in Finland. 5 . Environmental Factors: Environmental standards for food quality are high in Finland. Local companies of Sri Lanka need to consider environmental standards of food quality. 6. Legal Factors: Law and regulations are strict for international trade. Brands need to consider practical laws and tax regulation systems for trade in Finland (www.gov.uk, 2019) . Contract law and intellectual property laws are also strict for businesses and international trade in Finland. PESTLE ANALYSIS

15. Porter Five Forces Analysis 35 % Bargaining Power of Suppliers: Bargaining power of suppliers is high in Finland as many companies from different countries are serving coffee products. Suppliers has strength to bargain and change prices Bargaining Power of Buyers: buyers has many alternative offers and they are concerned with high quality and taste. Buyers can bargain to lower prices. Threats of substitutes: Low __ substitutes such as beverages, soft drinks and tea are available but demand for coffee is high. Switching cost is high. Threats of new Entrants: Moderate_ new international companies are developing trade relations with local companies of Finland. High profit and sales growth are attractions for new entrants. While barriers are limited which causes to increase threats from new entrants. Industry Rivalry __ High competitors has high level rivalry. Prices and quality standards has influence on companies strategies (Baker & Hart, 2016) .

16. Pricing and Costing Problems Poverty, inflation, and limited consumer buying power causes pricing issues. Competitive forces and substitutes also encourage to keep prices lower In Finland prices for 1kg coffee are between 28-67 euro. Costing problems are linked with wastage management practices, transportation, and inventory management. Taxes on international trade will also increase cost of operations. Cost issues are also caused by extra testing process to meet international standards of quality and taste (Baker & Hart, 2016) .

17. time is my time Theoretical Model

18. Theory Theoretical models shows justification for country screening decisions . According to Johansson 2008, international entry evaluation process include country identifications and market screening ( Johanson , 2008) . Preliminary screening includes currency stability, economic stability, barriers to entry, domestic level consumption, and competitor forces. Finland country screening by PESTLE and other analysis cover all these areas. Country policies for international and national trade are important for decision making and understanding operational outcomes.

19. Theory Cont.. According to the theory and literature review internal and External environmental analysis are essential for the selection of right and most suitable markets for a product. PESTLE analysis cover important external factors which can draw impact on business ( Baker & Hart, 2016) . PESTLE analysis also represents political forces and chances of influence on business. Economic analysis shows purchasing capability and overall economic condition of country which enable the companies to take better decisions about prices.

20. Theory Cont.. Competitive analysis are important to understand competitive strength of a country at the time of investment or business start-up. Competitive analysis shows opportunity for new business Substitute and alternative products can draw impact on price strategies Porter five forces analysis shows risk associated with targeted market. Import and demand analysis are important in decision making process to understand market potential for offered products ( Fifield , 2012) .

21. Budget and TimeLine

22. Budget Add Text Simple PowerPoint Presentation Retail price of budget divided into three segments Upper end From approximately $30 per kg to $67.90 per kg Middle end From approximately $ 12 per kg to $29 per kg Lower end From approximately $ 6 per kg to $ 12 per kg The price mark ups of supply chain 20% change in producers and exporters Budget consider the exemplary coffee prices in retail

23. Add Text Simple PowerPoint Presentation Timeline January February March April May June July August September Market analysis Budget development Social media campaign Analysis of customer requirement

24. Reach to Market Add Text Simple PowerPoint Presentation Different marketing strategies will be considered Relationship marketing Cause marketing Undercover marketing Transactional marketing Internet marketing Diversity marketing

25. Conclusion Add Text Simple PowerPoint Presentation Coffee cultivation is improving in Sri Lanka Export to international brands and companies will increase revenue for local brands Finland and Norway are leading countries in the world for coffee consumption Finland political, economic, social, technological, and legal factors are supportive for international trade. Competitive forces are strong in Finland __ while demand is also high Cost and prices issues are caused by competitor strategies and product quality. Theoretical models shows country screening decision should cover environmental analysis to understand risk factors, future operations and sales growth in new market.

26. Reference Add Text Simple PowerPoint Presentation Baker , M. J., & Hart, S. (2016). The Marketing Book. Routledge . Fifield , P. (2012). Marketing Strategy. Routledge . finnpartnership.fi. (2019). Coffee and coffee products in Finland. Retrieved from finnpartnership.fi: https://finnpartnership.fi/wp-content/uploads/2018/01/Coffee-in-Finland-2017-report-final.pdf Johanson . (2008). Global Marketing. Tata McGraw-Hill Education. Worldatlas.com. (2019). Top 10 Coffee Consuming Nations. Retrieved from www.worldatlas.com: https://www.worldatlas.com/articles/top-10-coffee-consuming-nations.html www.gov.uk. (2019). Overseas Business Risk - Finland. Retrieved from www.gov.uk: https://www.gov.uk/government/publications/overseas-business-risk-finland/overseas-business-risk-finland#department-for-international-trade-dit

27. Thank You