Post on 07-May-2015
Members:Stéfano Adum
María José BarniolJaime Castillo
Juan Pablo CuestaWalter Reyes
Name of Company: Cafédirect PLC
Type of Business: Coffee and Tea Manufacturing.
Products: Tea, coffee, hot chocolate and malted drinks
C.E.O.: Penny Newman. Headquarters: City
Cloisters, Ste. B2, 196 Old St., London U.K.
Web Page: http://www.cafedirect.co.uk
Company Profile
Mission and Vision
“To be the leading brand which strengthens the influence, income and security of producer partners in the south and links them directly to the consumer.”
Brief Company History 1991
Cafédirect is founded by Oxfam, Traidcraft, Equal Exchange and Twin Trading in response to the collapse in coffee prices, to help strengthen the influence, income and security of coffee growers in the South and to link them directly to the consumers in the West.
1997 Cafédirect Rich Roast, Fresh Ground coffee is launched, the
first Cafédirect Roast & Ground coffee to include African coffee beans.
1998 Teadirect is launched.
1999 Cafédirect launches 4 new coffees, 3 of which are organic. The first Cafédirect web site is launched.
Brief Company History 2002
Cafédirect launches a new look freeze dried coffee, Cafédirect 5065, Premium Instant Coffee.
2003 Cafédirect launches Cocodirect Drinking Chocolate. New packaging is launched for the entire Roast & Ground range.
2004 Cafédirect became a public company. Cafédirect reinvested £540,000 into strengthening its producer
organisations’ capabilities and knowledge. The company set up a dedicated sales team for the ‘Out of Home’
sector. As a result, sales have increased by 72% and represent 8% of total sales.
2005 Turnover grew 14% - from £17.3 million to £19.75 million. By helping to raise incomes and improve health and education in
rural sub-Saharan Africa in particular, Cafédirect contributes towards the United Nations’ Millennium Development Goals.
Organizational Chart
Geoff Tudhope
Krishna Gopala
Jean Floogate
Penny Newman
Chief executive Officer
Phil KingFinance director
Fiona McAnena
Consumer director
Tim MorganGuardian nominee director
Lazaro MwakajilaProducer directors
Raul AguilaProducer directors
BOARD DIRECTOR
Business Sectors Cafédirect works
with smallholder farmer co-operatives and other producer organizations across 11 countries.
Its work with these organizations ensures a better deal for over a quarter of a million growers and their families.
Main Markets Cafedirect buys from 33 producer
organizations in 11 countries from South and Central America, Africa and Asia.
The main market of this company is the United Kingdom. Its products are sold through most of the major supermarkets.
Product Range
Coffee: Las Nubes Gourmet Coffee Beans Machu Picchu Gourmet Organic Coffee Beans. Mount Elgon Gourmet Organic Coffee Beans. Medium Roast, Fresh Ground Fairtrade
Coffee. Decaffeinated Medium Roast, Fresh Ground Espresso, Fresh Ground Fairtrade Coffee.
Chocolate: Cocodirect Drinking Chocolate
Tea: Kilimanjaro, Fresh Ground Rich Roast, Fresh Ground. Organic Medium Roast, Fresh
Ground. Organic Machu Picchu Mountain
Special, Fresh Ground. Organic Palenque, Fresh Ground. Organic Earl Grey
Cafedirect product range includes different types of coffee and tea, and also a type of drinking chocolate. Some of the company’s products are:
Cafédirect invests more than a third (36%) of its gross profit into marketing and product development to: Ensure growth Raise awareness of Fairtrade Communicate the brand and product
range. These efforts have thrown excellent
results in the latest years, increasing brand awareness to 56% and increasing distribution in major supermarkets.
Marketing
Brand Awareness Cafédirect's brand positioning is based on
two points:1. It is “'the pioneer of Fairtrade”. They ensure that
over a quarter of a million growers receive a decent income from trading.
2. Quality. Their brands, Cafédirect, 5065, Teadirect and Cocodirect have the most elevated standards of exquisite flavour and quality.
Cafédirect is ranked as the 3rd most trusted brand in the UK, results of a recent Reader's Digest poll reveal.
Recent Marketing Campaigns:
5065 intends to communicate the quality message with a 'lighter' profile through entertainment media. Ranging from:
The new premium instant coffee brand '5065', launched in 2002, targeted to younger consumers.
Sponsorship of the most recent theatre plays at the Edinburgh Festival Fringe
Presence at BAFTA Awards and the British Comedy Awards.
The Company cares much about product quality: Strict quality controls have been
implemented throughout the supply chain.
Cafédirect has encouraged farmers to develop organic and gourmet techniques to produce the best quality coffees. Farmers are paid an additional
bonus for the extra effort that they make in the production of such products.
By giving farmers a fair price for their labours the company ensures it is getting the best of the crop.
Company’s Strategy:Product
As said before, Cafédirect invests a very important share of its gross profit into marketing.
The image of the company is well respected and admired for its ethical procedures by practicing fair-trade and for the excellent quality of their products.
Company’s Strategy:Promotion
Cafédirect operates with very low and competitive prices.
The company's policy of fairtrade ensures that growers get what they deserve as the company as well too. That's why profit margins in prices are very narrow.
Examples of prices: Organic Medium Roast Fresh Ground 227g (Pack of 3)
Cafe Direct Organic Medium Roast Fresh Ground: £ 8,97
Decaffeinated Organic Premium Instant 100g(Pack of 2)Cafédirect Decaffeinated Organic Premium Instant: £ 7,98
Cafe Direct 5065 Coffee Granules Fair-trade Tin 500g: £ 18,80
Company’s Strategy:Price
New packaging was launched recently for the entire Roast & Ground range. Essential information about the coffee's character, strength and preparation appears on the front of each pack.
Company’s Strategy:Packaging
S.W.O.T. (Strengths - Weaknesses - Opportunities - Threats)Strengths- Strong loyalty from the growers.- Working with growers who have
the expertise to provide exceptional quality.
- Focused and direct marketing campaigns show excellent results on sales and brand awareness.
Weaknesses- Profits could be higher, but
company's policy of Fairtrade stands above this.
Opportunities- Having excellent relations with
growers all around the world, gives Cafédirect credibility and good image, creating the opportunity of going worldwide successfully in the future.
Threats- Natural disasters may cause
serious damage to coffee, cacao and tea crops.
- International prices of coffee could fall and cause instability to the company.
- High offering can result in product value to decline.
Brief Finance AnalysisTurnover & Profit The company’s turnover and profit before taxation
were all derived from its principal activity. Sales were made in the following geographical markets:
2005 2004
£ £
United Kingdom 19,416,903 17,099,804
Overseas Sales 337,480 247,242
19,754,383 17,347,046
Brief Finance AnalysisCost of sales
2005 2004
£ £
Opening stock as at 1 October 3,273,007 3,267,372
Purchases 11,310,411 9,591,626
Fairtrade premiums 1,631,266 2,393,131
Closing stock as at 30 September
(2,934,143) (3,273,007)
13,280,541 11,979,122
Brief Finance AnalysisProfit & Loss Account
2005£
2004£
1 October 2004 1,067,708 948,951
Profit for the financial year 388,210 146,257
Bonus issue of shares (27,500)
30 September 2005 1,455,918 1,067,708
Brief Finance AnalysisTurnover over last 5 years
0
5.000
10.000
15.000
20.000
25.000
2001 2002 2003 2004 2005
Year
Turn
over
Cafédirect PLC – Balance Sheet30 September 2005
2005£
2004£
FIXED ASSETS
Tangible Assets 40,839 107,727
CURRENT ASSETS
Stocks 2,934,143 3,273,007
Debtors 3,490,013 2,485,628
Cash at bank and in hand 3,859,299 3,962,072
CREDITORS
Amounts falling due within one year (3,315,835) (3,305,460)
NET CURRENT ASSETS 6,967,620 6,415,247
TOTAL ASSETS LESS CURRENT LIABILITIES
7,008459 6,522,974
CAPITAL AND RESERVES
Called up share capital 2,248,850 2,178,125
Share premium account 3,303,691 3,277,141
Profit and loss account 1,455,918 1,067,708
EQUITY SHAREHOLDER’S FUNDS 7,008,459 6,522,974
Approved by the board on 8 December 2005
Penny Newman - Director
At the beginning of this project we supposed to do some research about CaféDirect business and present it in class. Now that we have finished it, we realize that it was not only that. It was: Teamwork Time management Using all the technology tools that nowadays we have Using our communication skills, knowing how we should
make a very interesting presentation for the audience. It was a very interesting project, because we had the
opportunity to know a very big company that not only produces excellent quality coffee, tea and cacao, but cares about fairtrade, ethics, the building of a better society where everyone can gain a profit from an activity and not only a few. We should try to imitate this philosophy of business ethics here in Ecuador.
Conclusion
Thank You for your
attention!