Latitudes Grand Cru Coffees is planning to expand its business in foreign countries like the USA, Europe, and China. The coffee maker needs a complete marketing strategy and plan for increasing sales and supporting a new initiative with fermentation approved by representatives. Considering the current marketing material used by the company, it is seen that company has limited exposure on social media sites and hardly uses networking platforms to promote the brand. Based on this analysis, the social media strategy to be used in the future to promote the brand and create a demand to enhance online sales is influencer marketing.

This strategy is suggested because the trend is getting hype day by day and it seems the most cost-effective way to target the desired market segment. An influencer marketing strategy is suggested for Latitudes Grand Cru Coffees because it can let the company promote its brand in overseas markets while hiring famous influencers within the chosen regions of the USA, China, and Europe. Influencer marketing is a new trend in the field of marketing, which is getting wider visibility in the world. It is the most viable digital marketing tool and social media strategy (Vrontis et al., 2021). It uses endorsements and product mentions from influencers – people who have a loyal fan following and are considered specialists in their respective niches (Haenlein et al., 2020).

Considering the current strategy for sales, the company focuses on promoting raw coffee rather than roasted coffee beans. The consumption and distribution patterns may differ in the future as people from different countries mostly prefer roasted coffee beans over raw beans. New channels to trade coffee roasted beans can be used and this could be done through importing channels and forming alliances with famous coffee companies like FAF and Ipanema Coffee Makers. The company is suggested to make a strategic cooperative alliance with such companies since they export excellent roasted coffee beans to different parts of the world (Bianco, 2020). Consumer behavior may change over time in the targeted countries since the trend of having blended coffee over tea and other drinks are gaining momentum and also now people prefer to have coffee in different flavors.

The pandemic year was not easy for people in the coffee industry, together with 25mn small-sized farmers who are responsible for raising 80% of the world’s coffee. Overall, 125mn individuals depend on coffee for their source of income, from distributing and roasting the beans to selling the final site (Gorgoglione, Messeni Petruzzelli, and Panniello, 2018).  Because of unexceptional challenging imposed by Covid-19, clients have still been able enough to get their hands on their preferred drink; all credit goes to the resilient nature of coffee makers and supply chain networks.

The current and future European, American and Asian coffee market, specifically in terms of specialty coffees, looks promising in terms of market value. The European Coffee market, for instance, was valued at 42,62bn dollars in 2020 and it is anticipated to observe a CAGR of 3.96% in the forecast period of 2026 (Bianco, 2020). The coffee market within the chosen markets is determined by different factors such as rising demand for certified coffee beans, acknowledgment of single-serving coffee brew schemes by clients, and continual innovation by the leading rivals in the coffee industry (Borrella, Mataix, and Carrasco‐Gallego, 2015). But, the varying climatic conditions play a critical role in coffee making in these nations where production happens, therefore impacting the supply chain for coffee being imported into the European nations.

There is a rising demand for premium coffee along with the client’s interest regarding how the coffee is brewed, and how the beans are grown. It has, thus, become important for specialty coffee makers to narrate the storyline, its source, and other sustainable measures that are used in making the final product. The competitive landscape of the coffee industry looks intense and it is dominated mainly by key players like Starbucks, Jab Holding, Nestle, Luigi, Gloria Jeans, and Strauss Group (Gorgoglione, Messeni Petruzzelli, and Panniello, 2018). Latitude Coffees need to position itself as a supplier of specialty coffee within the markets of Europe, Asia, and the USA. This could be done by using sustainable sourcing measures and practices to attract potential clients. An estimate of the costs associated with competing successfully in the target market includes 100,000bn dollars including development of production sites, marketing, operational activities and hiring of talented staff.

Market and Sales in China

Market Size

Considering the market analysis of China, the coffee industry is expected to observe a CAGR of 10.42 percent in the expected timeframe of 2022 till 2027. The coffee market size in China is valued at 82bn Yuan. The coffee industry is growing at a considerable rate of nearly 5.5% and the most radical growth is projected to take place in China and USA (Zhang, 2014). This poses opportunities for Latitude Grand Cru Coffees to think about entering into China.

Coffee Consumption Trends and Consumer Analysis

The trend of coffee consumption is widespread across China and people consume 14bn coffee cups annually. The current study confirms that 63% of this coffee consumption is instant coffee as demanded by the Chinese consumers (Zhang et al., 2021).Coffee has become the part of Chinese office cultural environment. It keeps people active and provides a room for consolation when customers are working long hours. Dominate players are now availing this trend and tying to become more reachable with the young while collar class of the society (Ferreira and Ferreira, 2018). The coffee industry is booming and expected to grow over time as customers prefer to have coffee over tea to make them feel energetic and active.

Competitors Analysis

The coffee industry group Jasblu Shanghai Company Limited is struggling hard to beat the international competition posed by Starbucks. This can be done by upgrading cafes and restaurants to become smart spots that will support independent orders, self-service, and artificial intelligence since the trend of coffee consumption is gaining height in Shanghai (Shanghai, 2021). However, Starbucks is ruling over the Chinese coffee market currently because of their aggressive expansion strategy and has plans to develop around 6000 shops in the country by the end of 2022.

Impact of Covid-19 on the Chinese Coffee Market

The Chinese coffee market has been least impacted by the recent pandemic. In 2020, on average, one coffee shop was opened in China and this pushed the demand of total number of coffee outlets to be opened in different cities of China like Shanghai and Beijing. Due to stringent measures imposed due to lockdown while considering the spread of Covid-19, consumers in China are consuming instant coffee at their homes (Mordor Intelligence, 2022). This, as a result, has increased the demand of instant coffee in the country because of Covid-19. It provides scope for Latitude Coffee to come up with the idea of launching instant coffee as demand is high in China.


Bianco, G.B., 2020. Climate change adaptation, coffee, and corporate social responsibility: challenges and opportunities. International Journal of Corporate Social Responsibility, 5(1), pp.1-13.

Borrella, I., Mataix, C. and Carrasco‐Gallego, R., 2015. Smallholder farmers in the specialty coffee industry: opportunities, constraints and the businesses that are making it possible. IDS Bulletin, 46(3), pp.29-44.

Ferreira, J. and Ferreira, C., 2018. Challenges and opportunities of new retail horizons in emerging markets: The case of a rising coffee culture in China. Business Horizons, 61(5), pp.783-796.

Gorgoglione, M., Messeni Petruzzelli, A. and Panniello, U., 2018. Innovation through tradition in the Italian coffee industry: an analysis of customers’ perceptions. Review of Managerial Science, 12(3), pp.661-682.

Haenlein, M., Anadol, E., Farnsworth, T., Hugo, H., Hunichen, J. and Welte, D., 2020. Navigating the New Era of Influencer Marketing: How to be Successful on Instagram, TikTok, & Co. California management review, 63(1), pp.5-25.

Shanghai, Q. 2021. Embracing the coffee culture. Retrieved from:

Vrontis, D., Makrides, A., Christofi, M. and Thrassou, A., 2021. Social media influencer marketing: A systematic review, integrative framework, and future research agenda. International Journal of Consumer Studies, 45(4), pp.617-644.

Zhang, N., 2014. Coffee market in china: trends & consumer strategies. A coffee industry market research of a traditional tea-drinking country.

Zhang, S., Liu, X., Li, R., Wang, X., Cheng, J., Yang, Q. and Kong, H., 2021. AHP-GIS and MaxEnt for delineation of the potential distribution of Arabica coffee plantation under future climate in Yunnan, China. Ecological Indicators, 132, p.108339.

Mordor Intelligence. 2022. CHINA COFFEE MARKET – GROWTH, TRENDS, COVID-19 IMPACT, AND FORECAST (2022 – 2027). Retrieved from: ttps://

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