Sweet & Coffee in Ecuador: the challenge of market expansion

Learning outcomes After working through the case and the assignment questions, students will be able to: ▪ Examine Ecuador’s business environment where coffee shops and similar companies operate. ▪ Evaluate the marketing challenges for an enterprise, particularly for a café business operating in Ecuador. ▪ Explain the marketing strategy for a café company to attract a variety of new consumer segments domestically and abroad. ▪ Discuss relevant international market entry strategies given the specificities of the environment in which a company operates. ▪ Describe the advantage of contemporary marketing tools in sustainable market expansion of a café business. Case overview/synopsis Richard Peet and Soledad Hanna turned their coffee shop business, Sweet & Coffee, into a flagship brand in Ecuador. Their coffee shops successfully promoted the culture of consuming coffee and sweets throughout Ecuador and grew exponentially to 129 stores. However, Sweet & Coffee faced significant challenges entering new states in Ecuador, with considerable investment in central kitchens and logistics. Despite the challenges, Peet wanted to continue opening new Sweet & Coffee stores across Ecuador. However, owing to Ecuador’s fast-changing and unpredictable external environment, Peet needed to make new adjustments to its marketing strategy to reposition Sweet & Coffee for a bright future. International market expansion was an option. Complexity academic level This case is helpful for advanced undergraduate or graduate courses in marketing and strategy. Supplementary material Teaching notes are available for educators only. Subject code CSS 8: Marketing.