Establishing a New Standard in the Home Coffee Market

Establishing a New Standard in the Home Coffee Market
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Establishing a New Standard in the Home Coffee Market
Coffee beverage is perceived to be different from other types of drinks for instance tea in regard to the quality and the taste it has. People like different beverages due to different reasons. They may be due to health reasons or regarding the aspect of quality of the beverage. When the coffee manufactured by Sara Lee Douwe Egbert's (SLDE) is compared to other beverages, its quality is of high standards according to the research findings as conducted by Senseo. This has boosted marketing of Coffee in many countries in a profound extend, for instance, it has expanded the markets into the United States as well as the European region. The breakthrough in the process of marketing is alluded to the two Dutch giants that had joined forces to launch the Senseo brewing coffee which marked a single revolutionary in the coffee brewing system. The two giants comprised of Sara Lee Douwe Egbert's (SLDE) and the Philips group. Various approaches were used by the competitors, and an example is the use of innovative methods that aimed at raising the standards of the competitors' products. The two partners became stronger as time went by and expanded their market to the United States introducing a new leverage of coffee. Critical challenges of the alliance design are well explained, for example, the challenge of equity which was lower at the place and the incumbents had prepared to defend their territory (Henry, 2005). The problem of deciding the type of marketing strategy to be employed was also common. The two partners, mostly the SLDE, have three prolonged strategies for the coffee business. The strategy mainly focused on the branding approach, marketing method used and innovative ways employed in the process of coffee production. They are aimed at boosting the attractiveness of coffee as compared to other beverages. The appropriate business model to be applied, the successes of the two alliances and their performances, as well as, if the partners should enter the US market, the approaches to be employed for them to survive is well explained in the essay.
The Brief Summary of the Case Study
The case study is concerned with establishing a market globally for the selling of the beverages. Various organizations were producing the same product, and therefore, the competition was a big challenge. Consumers' product selection was based on the quality of the product which was to be of required standards. There were also other factors which were minor though of paramount importance in determining the consumers' choice of the products. An example was the branding strategy employed in making the product together with the color of the product distinguishing it from the others. The companies were forced to combine the forces to come up with the brands that made stiff competition for the market to other companies producing similar product (coffee beverage). In the beginning, Philip group unified with Nestles, which later turned down in 1997 and was forced to join the SLDE, which had made much prosperities. Philips had to wait for some time for it to start enjoying the benefits since it had initially t...