TRIAL CASE EXAM 3 rd semester, 28 th of September 2015

KEYSTROKES 10656

Student: Iulia Andra Savu

MINT Dania Academy of Business and Technology

Growers Cup Trial case exam

Table of Contents
1. EXECUTIVE SUMMARY................................................................................................................ 3
2. INTRODUCTION............................................................................................................................ 3
3. MACROECONOMIC FACTORS INFLUENCING THE NORWEGIAN MARKET FOR COFFEE
AND HOT DRINKS ............................................................................................................................. 3
4. GROWERS CUP MARKET ANALYSIS .................................................................................... 5
4.1. Targeting and positioning ............................................................................................................................... 5
4.2. Marketing mix 4 Ps ...................................................................................................................................... 6
4.3. Marketing budget ........................................................................................................................................... 8

5. PREPARATION OF THE MEETING ............................................................................................ 8

6. BIBLIOGRAPHY .......................................................................................................................... 10

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1. Executive summary
As a marketing consultant at Growers Cup, I have been asked to re-evaluate and create a
strategy for the Norwegian market and to make a well-founded preparation of the meeting that
will take place, a meeting where Growers Group will talk and negotiate with a potential
Norwegian distributor.
Therefore, in this project I will present the macroeconomic factors that are influencing the
Norwegian market for convenient coffee and hot drink, defining a target group by using one of
the user situations the company has presented, a marketing budget and also a thorough
research and preparation of the meeting that will take place having as participants Growers
Cup and a potential Norwegian distributor.

2. Introduction
Description of the company
Coffeebrewer Nordic A/S is the company behind the Growers Cup brand. It is a Danish
company located in Middelfart, Denmark. The companys office, artisans roaster coffee and
packaging facility is established in an old restored farm building, settled in a hilly landscape
surrounded by forests and the sea1.

3. Macroeconomic factors influencing the Norwegian market for coffee

and hot drinks
Norway has a strong growing economy, with one of the highest GDPs per capita in the world,
after Switzerland2. Oil and gas sector lead to investment in social welfare system and increased
wages. The steady growth of the GDP can be seen as a sign of a high level of private

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2

http://growerscup.com/about-us/
Marketline, p21

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consumption. Seeing the statistics, we can conclude that the level of economic risk in Norway is
very low to low.
The labor market is threatened by the increasing proportion of elderly people and low
population growth. According to data from Statistics Norway, the country faced a labor
shortage of 63,000 in 2013, which represented around 2.5% of the total positions available
across various sectors3.Norway has a strong social sector with an unemployment rate among
the lowest in Europe. The country's population enjoys a high standard of living and is also able
to maintain a sustainable work-life balance4.
Another important macroeconomic factor according to Marketline is represented by
imported goods and services worth $138.6 billion. Norways import partners are diverse. In
2012 Sweden (13.6%) and Germany (12.4%) were the largest suppliers followed by Denmark
(6.3%) and the UK (6.1%)5.
Norway can be seen as a country with a long and rich coffeehouse culture and a great
appreciation for coffee. Coffee dominates 88% of total volume sales in the Norwegian hot
drinks market 6.
The hot drinks market consists of the retail sales of coffee, tea and other hot drinks (including
chocolate based hot drinks, malt-based hot drinks and other).The Norwegian hot drinks market
had total revenues of $570.0m in 2013, representing a compound annual growth rate (CAGR) of
3.3% between 2009 and 2013. Market consumption volume increased with a CAGR of 1.8%
between 2009 and 2013, to reach a total of 41.9 million kg in 2013. The performance of the
market is forecast to decelerate, with an anticipated CAGR of 2.7% for the five-year period
2013-2018, which is expected to drive the market to a value of $650.6m by the end of 2018 7.
As a conclusion I can state that these macroeconomic factors represent a good basis for
Growers Cup to expand on the market.
3

Marketline, p.23
Marketline, p27
5
Merketline, p58
6
Euromonitor
7
RESEARCHANDMARKETS.COM
4

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4. Growers Cup Market analysis

Quality versus comfort are two trends that have shaped growth in fresh coffee beans and
fresh ground coffee pods in 2013. Standard fresh ground coffee has traditionally dominated
sales in coffee, with the category accounting for 94% of volume sales of coffee in 2013. The
volume growth in 2013 was approximately one percentage point lower than the volume CAGR
experienced during the review period. The rising demand for fresh coffee beans and fresh
ground coffee pods is part of the less-but-better trend, as consumers opt for higher quality
products.

4.1. Targeting and positioning

Being clear that Growers Cup is still in the incipient phase to expand the market for their
products, the company needs to strengthen the brand. The emphasis should be on quality and
time saving when consuming the products. If so, the results would be positive, Growers Cup
being situated within the right target market.
One of the user situations provided is outdoor coffee 8. Nowadays more young adults with
ages that vary between 18-30, male or female, love adventure, nature and outdoor activities.
They enjoy skiing, hiking or sailing or spend their leisure time traveling with a backpack.
Growers Cup can offer the perfect solution for this situation, fine ground coffee that with hot
water can offer a unique fresh and refined taste.
Positioning would be best done emphasizing on the differences between the companys
products and those of the competition. Growers Cup is trying to differentiate their product
having as characteristics an innovative design, unique taste and easy to use form from instant
coffee which is necessary. Therefore, as seen bellow, positioning should be made as High
quality and moderate price.

www.growerscup.com

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High price

Low quality

High quality

Low price

4.2. Marketing mix 4 Ps

Product
Strengthening the brand loyalty would be beneficial for Growers Cup. As Norway is the
second largest coffee consumer with almost half a liter per person a day 9, I would recommend
expanding on the Norwegian market temporarily only with coffee based products. Also it might
be a good idea to ask for consumers opinion regarding the design or variety, i.e. custom made
package.

www.growerscup.com

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Price
Should You Buy It?
If you need coffee in the great outdoors but can't be bothered carrying any kit, then absolutely
yesyou'll be hard-pushed to find a Starbucks half way up a mountain, after all10.
The price should be kept in-between 16-18 DKK (18-20 NOK).
Place
Indirect distribution with retailing.
Products should be sold in supermarkets, hypermarkets and gas stations to create brand
awareness. A good choice would be Coop supermarkets and Statoil gas stations. In the incipient
phase, not selling online would be most adequate since Growers Cup Coffee products are not
well known.
Promotion
The promotion of the products is also an important aspect in gaining market share. Taking in
consideration the fact that Growers Cup coffee needs to create brand awareness it is necessary
a high level of exposure on shelves in supermarkets and gas stations. Participating as a sponsor
in sport events would also be recommended as their logo would be present on banners or
flyers. Heavy advertising on social Medias or magazines such as Vildmarksliv would also be
beneficial especially during winter time when different events occur such as sport events or
concerts where young adults are participating. Another option could be weekly newsletters
announcing coupons or special offers.
Other forms of promotion: billboards, posters in cafes and bars, samplings etc.

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http://gizmodo.com/5952425/growers-cup-review-decent-coffee-anywhere

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4.3. Marketing budget

ACTIVITY

COST

Online marketing employee ( web administrator) (1year-8hours a 25.000 kr

month)
Production and printing of flyers ( 200.000 pcs)
3900 kr
Posters (1000)

2500 kr

Free samples (500 pcs)

5000 kr

Youtube ads

45000 kr

Facebook ads (3 months)

52.000 kr

Sponsorship ( main winter event and other small open air concerts)
-winter time
TOTAL

200.000 kr
333.400 KR

5. Preparation of the meeting

When doing business in another country there are some factors that should be taken into
consideration. The most important one is culture. Therefore a thorough research on etiquette is
in need. Another step is preparing the agenda for the meeting identifying first the more
important issues/subjects to be discussed during the meeting.
Before starting the meeting the representatives of Growers Cup should greet the Norwegian
distributor representative casually, eye contact, a smile and a firm handshake are enough.
Although Norwegians are similar to Danes, relatively informal, they will often present
themselves using their surnames. The Growers Cup representatives when presenting
themselves should not appear too confident or self-promoting. If one would sum up the
Norwegian communication style it would be informal, transactional and direct11. Although the
nature of a business is transactional, trust should be gained with background information and

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http://www.kwintessential.co.uk/etiquette/doing-business-norway.html

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experience of Growers Cup, qualifications and real-time data information (numbers), such as
graphs and reports 12.
Punctuality is a must when doing business with Norwegians. When presenting the offer
Growers Cup should back it up with arguments, concrete facts and numbers organized in a
digital presentation and printed versions of the presentation handed out to each of the
participants in the meeting13.

12
13

http://www.kwintessential.co.uk/resources/global-etiquette/norway-country-profile.html
http://www.kwintessential.co.uk/etiquette/doing-business-norway.html

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6. Bibliography

http://www.kwintessential.co.uk/resources/global-etiquette/norway-country-profile.html
http://www.kwintessential.co.uk/etiquette/doing -business-norway.html
http://gizmodo.com/5952425/growers-cup-review-decent-coffee-anywhere
Marketline, p.23
Marketline, p27
Merketline, p58
Euromonitor
RESEARCHANDMARKETS.COM
www.growerscup.com

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