Coffee Export Business Plan

Executive summary China is one of the best destination options for exporting coffee products. The country has a stable and supportive political and legal environment that encourages the growth of foreign businesses. The established infrastructure in the country smoothens operations and facilitates logistics. The population is also large, literate, and has a high purchasing power. However, the coffee culture is new in the country and the Chinese language is difficult to comprehend and use in the business environment. To satisfy the tastes and preferences of different customers in the country, the brand will have different flavors of coffee, all processed to top-quality status. What makes it more attractive to export the coffee product is the relatively low costs of operating the business oversees in comparison with other businesses.

The exported coffee product will meet the daily necessity of the Chinese citizens as well as satisfy the cravings of the many coffee addicts in the country. Given the growing demand for coffee in the country, a fine-quality product is a priority for customers. As such, the export business will provide the customers with the best processed coffee products to meet their expectations. Despite the recent positive dramatic changes in the trade relationship between China and U. S. , the two countries have a history of hostile trade relations (Griffin & Pustay, 2012). Initially, in the late sixteenth century, the two countries were on good terms and frequently traded with each other. Many American businesspeople moved to China to start businesses and the Chinese also traveled to America.

This culture of the Chinese people may hinder the reception of the export coffee product to the country. Consumer attitude towards coffee For decades, the Chinese population has not had a welcoming attitude toward coffee. The people believe that coffee is not one of their native beverages. However, in recent years, this attitude has gradually changed as the country falls into the forces of globalization. After China opened to international trade and business, the market was flooded with new expectations, demands, trends, brands, and products. At 99. 7%, the youth literacy rate is even more impressive. Since the target market for the export coffee product is the young people, getting the product into the market will not be very challenging. With this rate of literacy, it is expected that most people in China can read and understand simple instructions.

Furthermore, the instructions for using coffee are very simple to comprehend. Export Marketing Plan The export business into China has plans of growing to become one of the leading distributers of coffee in China within the next three years. The company’s target market is the young population which has the characteristics of being vibrant and open to tasting new things. The targeted market will be between 18 to 50 years old. The income level of this group is between $5,000 and $25,000 per year. Short-term goals • Increasing sales by 20% every month for the first 6 months of operation. Despite the relatively low wage compared to other developed economies such as U. S. , a very large portion of the Chinese population is rich and has a high purchasing power.