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Juan Valdez Innovation in Caffeination


JuanValdez: Innovation in Caffeination

TheRise of Juan Valdez: Caffeination

JuanValdez: Caffeinationcould be one of the major businesses that utilized innovation to notonly venture into the market, but also conquer competitors. Theiconic Juan Valdez’s brand was popular and synonymous to the worldof coffee. The success in this form of advertising contributed theattainment of price premiums for Columbian coffee in theinternational markets. Juan Valdez’s character in the advertsdemonstrates the ability to identify a market niche hence, generatedthe need to look for resources to fill the market gap. The successfulmarketing campaign sought to incorporate customer preference andtaste to maximize the business returns (Topik, 2015). However, theorganization started declining in sales from year 2000 due to stiffcompetition from other coffee chains such as Starbucks. Bettermarketing strategies that targeted local influences in theconsumption of coffee are necessary to revive the Juan Valdez brandand its sustainability in the current market.

Beforethe decline of Juan Valdez coffee started at around the 1970’s and1980’s, the company had tremendous brand recognition. It engaged ineffective advertising and marketing strategies to raise awareness tothe target clients. Moreover, the brand gained a good image, whichsurpassed major coffee chain firms such as Starbucks. The successcould be due to the chain stores and supply techniques througheffective packaging. The brand name and image made the company gaincompetitive and comparative advantages (Topik, 2015).

Strategiesto Revive Juan Valdez

Therevival of the company needs to start with understanding the factorsthat contributed to its fall in the 2000s. The competition was amajor contributor towards the failure of the brand. Other competitorsventured in the market and attracted the unsatisfied customer basethat was previously served by Juan Valdez. Over time, the Columbiangovernment had entrenched several measures and strategies aimed atreviving the coffee brand (Norton &amp Dann, 2013). The approacheswere designed to make the brand recover its good image and contributepositively to the government. Furthermore, the government introducedan arm, Procafecol, for rebranding Juan Valdez. The main aim of thebranch in the reconstruction of the brand was to introduce stores andsupply chains that served the primary markets. Besides, Procafecolpresented a series of repackaging lines in coffee mugs and T-shirtsto enforce the changes in Juan Valdez (Topik, 2015). By 2002,Procafecol established Juan Valdez cafes in various points such asthe Airport.

Moreover,Procafecol employed different strategies to make Juan Valdez becomelike America Coffee Cafes. The new arm deployed speed and fastdelivery measures to customers consuming the beverage. It furtherensured that coffee shops were located in busy areas with a high flowof clients, including busy streets in the main towns (Topik, 2015).In conquering its competitors, the arm diversified Juan Valdezproducts to tap more market thus, it offered different varieties ofcoffee such as cappuccinos. Procafecol had to tweak the traditionalcoffee making of Juan Valdez to suit the contemporary changes whilestill maintaining the original taste of their product.


AsProcafecol intends to revive the brand, various challenges emergedthat affected the recovery process adversely. It was not easy to winback customers or even make them loyal to the brand. There was alsoconcern that competitors in the industry had adopted new strategiesthat required proper market intelligence. The measures Procafecoldeploys could or might not work since the rivals had alreadybenefited from the competitive advantage (Topik, 2015). Additionally,the company had to make a decision whether Juan Valdez will operateas a new brand or an enhancement of the earlier product. It waspossible for similar challenges that led to the company’s collapseto emerge if the executives tried to refurnish the previous brand.

Lesson’sfrom Juan Valdez Innovation and Corporate Entrepreneurship

Fromthe various approaches that Procafecol deployed to revive thecompany, it is crucial to understand corporate entrepreneurship andinnovation associated with Juan Valdez. One acquires valuable lessonson brand revival and marketing innovations. Besides, it isappropriate to learn about a competitors’ business hence, deviatemeans to conquer the competition. It is also necessary to considermarket trends in refurnishing a brand and the death stage of growthcurve (John et al., 2015).


Inreviving the product, it is appropriate to consider the factors thatled to Juan Valdez collapsing. Determining the factors could help indeviating mechanisms to deal with the problems immediately theyemerge. It is also necessary to have a proper management in place tooversee the strategic and operational activities of Juan Valdez. Inthe wake of increased utilization of technology, the company needs tointegrate computer-based tools to enhance creativity and innovation(Norton &amp Dann, 2013). Besides, diversity of products andservices could be vital in tapping more market of its product. Assuch, the adherence of the stated recommendations could help JuanValdez gain competitive and comparative advantages as before.


IfI were in a similar situation, I would devise other mechanisms ofgaining the control of market, as was the case previously. Forinstance, I could use mergers approach and collaboration with otherfirms to reintroduce my brand. Furthermore, I would ensure that thenew Juan Valdez utilizes new operational strategies that mirror thechanges in the current business environment, unlike the old JuanValdez. I would also initiate product and services changes whilestill maintaining the brand name. The essence of this step is toreach the new market characterized by the young population born afterthe old Juan Valdez. Furthermore, it would serve as rebranding thecompany with a rejuvenated power to conquer competitors.

Thelessons from the Juan Valdez’s case have great significance towardsthe growth of my career as an entrepreneur. It is critical toidentify a market gap and gain as many resources to utilize thepotential. I have also gained on seeking alternative methods torevive a brand after its loss of value in the market. Therefore, thecase of Juan Valdez offers practical experience in my line of career,especially in marketing and innovation in the business sector. Thisweek’s lessons are practical and form a real picture of thebusiness operation. Besides, they offer a unique aspect regardingcreativity, innovation and corporate strategies in entrepreneurship.As in other weeks therefore, it has been a time of gaining knowledgeof understanding the scope of business. Additionally, the lessonsdraw a close relationship with the course framework in that itexplores innovative strategies to maintain a business competitive inthe market.

Thelessons will also assist in identification of parallelism ininnovation with other companies. By acknowledging that with timethere is customer change in preferences and market changes,innovation should be an outlet of many businesses geared by embracingchanges and technology. With the modernity, it is appropriate todetermine the affairs prevailing in any given business operation andrespond accordingly.


John,L. K., Emrich, O., Gupta, S., &amp Michael, I. (2015). The Cambridgehandbook of consumer psychology. Proceedingsof the National Academy of Sciences of the United States of America,113,5588-5591.

Topik,S. (2015). Trade history: From the tree to the futures market, thehistorical process of coffee commodification, 1500–today. InBeyondFree Trade(pp. 17-35). Palgrave Macmillan UK.

Norton,M. &amp Dann, J. (2013). .Harvard Business School.