4. ECC aims to help struggling coffee farmers by providing
gourmet coffee to consumers via e-commerce
Should ECC keep selling to individuals?
ECC must employ a B2B sales strategy to remain competitive
situation analysis campaign action risks 4
5. Do consumers know about the brand of
coffee they are drinking?
Can ECC rely on their customer to
consistently purchase their coffee?
How much coffee can ECC sell to one
customer?
Can ECC charge higher margins to expand
their business line?
What is the effectiveness of ECC sales effort?
situation analysis campaign action risks 5
6. B2C B2B
• Coffee by the cup
• Gourmet coffee by • Caterers
ECC
the pound • Restaurants
• Commercial coffee • Corporations
by the pound
ECC should tap into the B2B markets to increase sales
situation analysis campaign action risks 6
7. Criteria Individuals Restaurants Caterers Corporations
Branding
Consistency of
Sales
High Volume of
Buying
Higher Margins
Ease of Sales
Efforts
ECC should focus on selling to corporations to achieve success
situation analysis campaign action risks 7
9. • Coffee lover DAVID
• Brews his own coffee
• Trendy high-income consumer
• Tech-savvy
• Socially conscious
ECC’s business model can reach a greater audience
situation analysis campaign action risks 9
11. Socially Responsible
IC
ECC ECC
CCC
SSR CCSA
B2C B2B
CC VH
KHC
Standard
ECC will have a competitive advantage in the B2B market
situation analysis campaign action risks 11
12. $0.025
ECC B2C
$0.60
VH
$0.26
ECC B2B
Variable Costs Per Annual Contract Scale Up Price Per Gram
Coffee $ 2,645.55
Additional Features Per Annual Contract Profit margin per gram 80%
Tea $ 2,700.00
Machines $ 2,000.00 Price per gram $ 0.26
Delivery $ 379.50 Variable cost per gram $ 0.05
$ 7,725.05
Profit for one contract $ 5,900.19
Profit for two contracts $ 36,800.38
ECC can raise per gram prices by 940% through B2B
situation analysis campaign action risks 12
13. Assuming all contracts are acquired at beginning of year
Scenario 1: One contract Scearnio 2: Two contracts Number of contracts 13.00
Revenue $ 38,625.24 Revenue $ 77,250.47 Revenue $ 502,128.06
Variable cost $ 7,725.05 Variable cost $ 15,450.09 Variable cost $ 100,425.61
Maintenance $ 25,000.00 Maintenance $ 25,000.00 Maintenance $ 25,000.00
Annual Profits $ 5,900.19 $ 36,800.38 $ 376,702.45
Assuming contracts are obtained every 6 months
Jan 1 - 1st Contract
Revenue
July 1 - 2nd Contract
$ 38,625.24 Revenue $ 19,312.62
13six years
Variable cost $ 7,725.05 Variable cost $ 3,862.52
Maintenance $ 25,000.00
First Year Profits $ 5,900.19 $ 15,450.09 $ 21,350.28
Rev/mo $ 3,218.77 $ 6,437.54
To reach revenue target ECC must establish 13 partnerships
situation analysis campaign action risks 13
14. Lower
prices
ECC
Networking Socially
opportunity responsible
ECC must leverage their three key selling points
situation analysis campaign action risks 14
16. GOOD
is the
new
BAD.
ECC’s campaign will leverage firm commitment to CSR
situation analysis campaign action risks 16
17. ECC will recognise their corporate partners
situation analysis campaign action risks 17
18. • Encourage current consumers
to establish contracts
• For every 10 grams of business,
ECC will give you 1 gram of free
coffee
Leveraging ECC customers will allow for greater number of contracts
situation analysis campaign action risks 18
19. CC
C Corporations
ECC will reach more Davids through their network
situation analysis campaign action risks 19
