Tag Archives: environment scan

Forget about Coffee Pods. Use Coffee Balls

Raise your hand if you drink coffee every day. Yep, we thought so – lots of caffeine is used in students’ lives. Coffee is an essential part of our daily routine. The types of brewed coffee may vary, but coffee is consumed around the world and represents a significant export to many countries.

Americans alone drink 400 million cups of coffee every day; 85% of Americans have at least one cup of coffee at home each day. While estimates vary, about 42% of U.S. consumers own a single-cup coffee brewing system (such as K-Cups). Consumption of K-Cups now exceeds 30 billion units annually. That’s a lot of plastic waste!

While consumers love convenience, that convenience carries a cost to the environment with respect to the waste generated. Although many types of K-cups are now recyclable, couldn’t more be done to marry convenience with sustainability?

The answer to that question is a resounding “yes.” A new coffee brewing system is coming first to France and Germany from Swiss company Migros. The brewing system is called “CoffeeB” and it uses compressed balls of coffee grounds which are encased in a thin, tasteless, seaweed base that can be composted. The coffee balls will be available in multiple blends including espressos to decaf coffee and will include organic coffee options as well. No plastic waste!

Drink up!

Group Activities and Discussion Questions:

  1. Poll students: Who drinks coffee? How much? How is it brewed?
  2. Show video of CoffeeB system: https://youtu.be/49eo8F2H7zY
  3. Show Website: https://www.migros.ch/en/content/coffeeb
  4. Divide students into teams. Have them us their laptops to research the coffee industry.
  5. Build an environmental scan of the factors impacting the coffee industry: social, economic, technology, competitive, and regulatory.
  6. What are the opportunities and threats for CoffeeB?
  7. Alternative assignment: Develop a marketing plan for introducing CoffeeB in the U.S.

Sources:  Rothman, L. (6 September 2022). How a ball of coffee could change your morning routine forever. Tasting Table.

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Netflix in Africa

Netflix seems to be in a stage of constant product development, as well as market development. While it originally started as a U.S.-based service, the company has moved aggressively into new geographies and now streams its programs in 190 countries and territories. The company now serves more than 100 million subscribers outside of the U. S.

ix has a complex business model in that it must secure content agreements by region and country. Regulatory restrictions also limit what content can be made available. Also, many international viewers are not fluent in English and prefer local-language programming. Such is the case in sub-Saharan Africa where Netflix is producing original content. The region has 1.1 billion citizens and is a largely untapped market. Streaming in Africa is estimated to grow from 3.9 million subscribers in 2020 to 13 million in 2025.

While Netflix is investing in African programming, it faces challenges in piracy, expensive mobile data, slow Internet speed, and a high rate of poverty. There is also plenty of competition in the market from both local and global providers. Pricing and sales requiring U.S. currency are issues as well. Netflix is testing a mobile-only subscription at $4.03 per month (59 South African rand).

Ready to watch?

Group Activities and Discussion Questions:

  1. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
  2. Which strategy is Netflix using? Why?
  3. Show video on Netflix global expansion: https://youtu.be/JdtnX_P-4Qc
  4. Divide students into teams. Have each team select one of the four different strategies and explain why that strategy could be used to market Netflix.
  5. Discuss how to build and use a SWOT analysis grid: strengths, weaknesses, opportunities, and threats (internal and external factors).
  6. Divide students into teams and have each team build a SWOT analysis grid.
    1. Strengths: what is company good at?
    2. Weaknesses: what needs work?
    3. Opportunities: what is going on in marketplace?
    4. Threats: what should company be wary of?
  7. Based on the analysis, what are the issues and risks that might occur?

Source:  Wall Street Journal; other news sources

 

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Google Acquires Fitbit

Acquisitions can be tricky. Companies need to assess what markets to enter, and which products and services are needed for those markets. While it is common for food and beverage companies to use acquisitions to gain market share, it can be a tad trickier when combining technology companies. A key consideration is that companies find synergies that can be capitalized on when combining organizations.

A recent acquisition of interest is the purchase of fitness tracker pioneer Fitbit by search engine giant Google for an estimated $2.1 billion. The acquisition moves Google into a better position in the wearable technology market and gives Fitbit access to more resources, technology, and marketing. (However, there are still some outstanding issues with government regulators; use by Google of Fitbit data for advertising purposes is a concerns to regulators.)

Fitbit is a familiar company to most college students. Founded in 2007, the company makes watches and bracelets to track health information; it has an estimated 20 million active users. New Fitbit products include Fitbit Stress, featuring stress management tools and an ECG app to assess heart rhythm. Fitbit’s products are carried in 39,000 retail stores in 100 countries. Annual revenue in 2009 was $1.4 billion.

Fitbit’s overall market share has decreased dramatically since the introduction of Apple Smartwatch. Its market share of 4.7% is significantly lower than the market leader Apple at 31.7%, followed by Xiaomi and Huawei.

How do you track your fitness?

Group Activities and Discussion Questions:

  1. Discuss the four key marketing strategies: product development, market development, market penetration, and diversification.
  2. Discuss diversifications/acquisitions as a marketing strategy. When is this effective? When is it not effective?
  3. Show Fitbit’s Web site and products: https://www.fitbit.com/global/us/home
  4. Show Google’s products’ Web site: https://about.google/intl/en_us/products/
  5. Do these two companies complement each other? If so, now?
  6. Divide students into teams. Have each team develop a promotional plan that the companies can use to promote their combined value to customers.

Source: Associated Press; CNN News; Wall Street Journal; other sources

 

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