1. Cafédirect was founded in 1991 in response to the collapse of the international coffee agreement to support smallholder coffee farmers through fair trade practices. 2. Cafédirect grew to support over 260,000 farmers in 13 countries and became a publicly listed company in 2004 while maintaining its social mission. 3. Theories like the corporate reputation quotient model and Kano model help explain how Cafédirect effectively marketed itself as a high-quality socially-conscious brand to attract new customers while satisfying existing customers.

1. The Story of Cafédirect Social Enterprise Marketing

2. Agenda Introduction Social Enterprise Fair Trade Cafédirect Theories Corporate-Reputation Quotient Kano Model Product/Market Grid Case Application Learning Insights

3. Agenda Introduction Social Enterprise Fair Trade Cafédirect Theories Corporate-Reputation Quotient Kano Model Product/Market Grid Case Application Learning Insights

4. S ocial Enterprise Social enterprises are social mission driven organizations which trade in goods or services for a social purpose. Triple bottom line: people, planet and profit social, environmental, financial not-for-profit -- more than profit

5. S ocial Enterprise

6. F air Trade Fair trade is a trade partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. contributes to sustainable development by offering better trading conditions to, and securing the rights of, disadvantaged producers and workers - especially in the South. Its organizations are actively engaged in supporting producers in awareness raising and in campaigning for changes in the rules and practices of conventional international trade

7. F air Trade Global Fair trade Sales 2007 $2,381,000,000 2006 $1,623,000,000 2005 $1,141,570,191 2004 $831,523,066 2003 $554,766,710 2002 $300,000,000 2001 $248,000,000

10. C afedirect

11. C afedirect

12. C afedirect 1993 -1995

13. C afedirect 1996 -1998

14. C afedirect 1999-2001

15. Agenda Introduction Social Enterprise Fair Trade Cafédirect Theories Corporate-Reputation Quotient Kano Model Product/Market Grid Case Application Learning Insights

21. Kano Model Theory 2

23. Kano Model Theory 2 Kano Model applied to Food&Beverage industry Factors KANO Category How to do better Sanitation & Safety Basic Needs Keep and have to satisfy customers above the average level Quality Basic Needs Taste Performance Sustaining improve on to gain more return Package Performance Distribution Performance Sales Promotion Surprise Dig and focus on Brand Surprise

24. Kano Model Theory 2 Quality - Clients were usually concerned citizens for whom the charity aspect of fair trade prevailed over product quality. - Penny Newman-reposition Cafédirect as a high quality coffee brand - Direct Trade(long-term contracts and producer education built-in supply chain for reliable high-quality gourmet coffee) Sanitation & Safety - Government report - Product Recall of Cafédirect product (found small pieces of glass) - Hazard Analysis Critical Control Point, or HACCP, is a standard of food safety management system for any food producer wanting to sell into the UK and other European markets. Now it is for all parts of the supply chain Basic factors

25. Kano Model Theory 2 Performance factors Distribution - Target the mainstream distribution channels such as supermarkets, catering, and coffee bars Taste - "Some batches tasted very good and others tasted very poor. That generated a lot of negative reaction in the UK to Cafédirect in the first years." (Hudghton, 2002, interview) - Cafédirect's Gold Standard Programme - Train growers to professionally taste their own products, helping them to improve quality and understand market value

26. Kano Model Theory 2 Performance factors Package - Cafédirect undertook a major brand relaunch in 2006 to help unify the brand look and aid it competitiveness

27. Kano Model Theory 2 Excitement factors Brand - 8 Awards in 2008 - August 2008: Cafédirect triumphs in Great Taste Awards - In a survey of 2,000 global brands Cafédirect ranks No. 1 as the most recommended brand Social Enterprise concept - Combining taste, price, ethics, and availability - 良心消費主義 (ethical consumerism)

28. Product/Market Grid Theory 3 Ansoff Matrix

29. Product/Market Grid Theory 3 Source: Cafédirect annual report 2006-2007

30. Product/Market Grid Theory 3 Ansoff Matrix

33. Product/Market Grid Theory 3 When the current product is launched in a new market, there are three approaches to develop the market: 1. Expand distribution channels. 2. Sell in new locations. 3. Identify the potential users.

35. Product/Market Grid Theory 3 Annual report 2005-07

36. Product/Market Grid Theory 3 Originally, coffee, later, hot chocolate When a new product is launched in the current market, the intensive growth strategies could be to: 1. Develop new features. 2. Develop different quality levels. 3. Improve the technology.

37. Product/Market Grid Theory 3 Annual report 2005-06

38. Agenda Introduction Social Enterprise Fair Trade Cafédirect Theories Corporate-Reputation Quotient Kano Model Product/Market Grid Case Application Learning Insights

39. Nike vs. child labor in the 90s Corporate Reputation Quotient application

43. Kano Model application

47. Photo Editing “ Wow, my photos are sharpened automatically”

48. Photo Editing “ Wow, I can add my own Text and Stickers”

49. Community “ Wow, I can find something interesting about Hong Kong”

50. Community “ Wow, this guy is quite popular here”

51. Fun “ Wow, the way of browsing is cool”

52. Fun “ Wow, I can explore the world”

53. Fun “ Wow, they have widgets can be embedded into other sites”

55. Product/Market Grid application The result was a 2.2% increase in net sales to 136,312 million yen

58. Agenda Introduction Social Enterprise Fair Trade Cafédirect Theories Corporate-Reputation Quotient Kano Model Product/Market Grid Case Application Learning Insights

59. Learning Insights From Cafédirect’s case, we learn that 1. SE should keep long-term relationships with small-holders and set high standard of quality 2. SE should market itself just like commercial organizations 3. Guarantee basic factors, improve performance factors and make “Social Enterprise” identity as the excitement factor 4. Expand to mass market by increasing distribution channels “ New Fair Trade” ATOs Style Business Idealistic Skills Sales, Marketing Intellectual Strategy Make money to help Advocacy Values Commercial but ethical Non-commercial Staff Professional Semi-volunteers System Dependable More ad-hoc Structure Performance-based, clear responsibilities Democratic, Political

60. Learning Insights