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Nafcafe Ltd - look at there failing marketing problem
Member rating: No Rating | Words: | Submitted: Tue Jun 20 2006
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Nafcafe Ltd is a UK producer of instant coffee. Recently, it has been experiencing the following problems in marketing its products within the EC. In the Netherlands, Nafcafe discover that instant coffee is subject to a higher rate of sales tax than ground coffee. A market analysis reveals that 70% of instant coffee is imported whereas 80% of ground coffee, bought by Dutch consumers, is produced by Dutch firms. The Dutch government seeks to justify the differential on the ground that Dutch firms support coffee plantations in developing countries and other producers should be encouraged to follow suit by means of tax incentives. The Swedish Government introduces a law which requires manufacturers of all food and drink stuffs to use biodegradable packaging. Nafcafe uses plastic containers, which are not biodegradable, and investing in new packaging would entail considerable expenditure. However they believe that their packaging can be recycled. Nafcafe set up a...
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