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Strategic management models are increasingly being used as the lenses through which company problems are analyzed and in the design of effective strategic planning programs in developed countries. However, these models are rarely applied in industry and commerce of developing countries. This study used the Boston consulting group (BCG) matrix to analyze the market for export coffee in Rwanda. Data on coffee exports by destination over a period of 4 years (2005-2008) was used. Results of the study indicated that Rwanda coffee has predominantly been marketed to European destinations that include Sweden, Switzerland, Germany, France, UK and Russia and in general these markets increased by 287% over the last 4 years. However, coffee trade in Rwanda accounts for a small proportion (0.69%) in global export coffee market. If the role of export coffee to the country economic vista is to be consolidated, there is need to understand the social, economic, cultural, institutional and technological factors affecting consuming sub-populations in these countries. Appropriate promotional strategies for these destinations are also discussed.
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Content Preview
African Journal of Business Management Vol. 2 (4), pp. 210-219, May 2009
Available online at http://www.academicjournals.org/AJBM
ISSN 1993-8233 © 2009 Academic Journals




Ful Length Research Paper

Analysis of coffee export marketing in Rwanda:
Application of the Boston consulting group matrix

Edward Mutandwa, Nathan Taremwa Kanuma, Emmanuel Rusatira, Theophile
Kwiringirimana, Patrice Mugenzi, Ignatius Govere and Richard Foti

Department of Rural Development and Agribusiness, Faculty of Agriculture, Higher Institute of Agriculture and Animal
Husbandry (ISAE-Busogo), Musanze, Rwanda.

Accepted 4 March, 2009

Strategic management models are increasingly being used as the lenses through which company
problems are analyzed and in the design of effective strategic planning programs in developed
countries. However, these models are rarely applied in industry and commerce of developing countries.
This study used the Boston consulting group (BCG) matrix to analyze the market for export coffee in
Rwanda. Data on coffee exports by destination over a period of 4 years (2005-2008) was used. Results
of the study indicated that Rwanda coffee has predominantly been marketed to European destinations
that include Sweden, Switzerland, Germany, France, UK and Russia and in general these markets
increased by 287% over the last 4 years. However, coffee trade in Rwanda accounts for a small
proportion (0.69%) in global export coffee market. If the role of export coffee to the country economic
vista is to be consolidated, there is need to understand the social, economic, cultural, institutional and
technological factors affecting consuming sub-populations in these countries. Appropriate promotional
strategies for these destinations are also discussed.

Key words:
BCG matrix, strategic marketing, coffee, Rwanda, Africa.


INTRODUCTION

In most developing countries, coffee production provides
important crops in the country’s agricultural landscape. It
an important option for income generation for resource
is grown by approximately 500,000 smal holder farmers
poor households and is thus essential in socio-economic
on a total area of 33,000 ha (OCIR-Café, 2005). Despite
development of these countries. Its significance is under-
the important role that the crop plays in the livelihoods of
scored by the fact that there are about 75 coffee-
rural farmers, national coffee throughput has been dec-
producing countries, mainly in South America, Africa and
lining since the early 1980s. National production reached
Asia, employing about 10 mil ion laborers and producing
a peak of 43,000 tons in the 1986/87 coffee season. Bet-
approximately 6 mil ion tons annual y on a total area of
ween 2000 and 2004, national coffee production hovered
over 10 mil ion ha (ICARD, 2002). Today, Arabica coffee
between 16,000 and 25,000 tons with an average yield of
dominates contemporary coffee trade even though its
2 tons/ha (OCIR-Café, 2005). This tonnage is relatively
share fel from about 80% of world production during the
low when compared with main coffee producers in Africa
1960s to around 60% by the turn of century, initial y
such as Ivory coast and Uganda, which produce an
because of high growth of Robusta production in Brazil,
annual average of 3.5 and 2.7 mil ion tons respectively. A
Vietnam and parts of Africa but more recently because of
plethora of constraints are often cited as militating against
the emergency of Asia as the world’s leading Robusta
the attainment of higher productivity in Rwandan coffee
producing region (Pil ai, 1984; Richerzhagen and
production. These include high production costs, pests
Virchow, 2002).
and diseases, production and market risks, low inter-
In Rwanda, coffee has remained one of the most
national prices and the smal landholdings among

farmers (MINICOFIN Report, 2003). Other factors affec-

ting coffee quality in East and West African countries

include poor agronomic practices, lack of access to agri-
*Corresponding author. E-mail: edwardmutandwa@yahoo.com.
cultural credits, inadequate research and development


Mutandwa et al. 211






development linkages, processing methods, high cost of
i.) To classify Rwandan coffee export markets based on
farm inputs, low international prices, high transportation
market share and growth.
costs, pests, diseases and inadequate infrastructure in
i .)To determine the possible strategic marketing deci-
rural areas (FAO, 2008). Problems related to international
sions related to the Rwanda export coffee market.
coffee marketing include stringent quality standards,

costly standards for certification and enforcement sys-

tems, bulking difficulties which limit regular supply of
Review of literature
economic volumes, increased variability in prices and

An overview of coffee production in Rwanda

limited opportunities to manage price risk (ECART,

2007).
In 1990, Rwanda exported 45,000 tons of coffee a year,
In Rwanda, a number of initiatives have been crafted
but that plummeted fol owing the conflict in 1994. In 1995,
by both public and private sectors. However, these initia-
the country produced 330 mil ion bags of coffee (weigh-
tives have largely focused on the technical or productivity
ing 60 kg each), which decreased to 194 mil ion bags in
constraints affecting coffee farmers at the expense of
1997. In 1999/2000, production was 18,800 tons while it
institutional marketing arrangements for the crop. Rwan-
declined to 14,000 tons in 2003 because of inadequate
dese coffee is considered to be of high quality and is sold
inputs and inauspicious international prices. Coffee pro-
to conventional markets such as the US, Europe and
duction of 14,600 tons in 2000 compares to a pre-civil
other parts of the globe. Strides have been made to
war variation between 35,000 and 40,000 tons. Figure 1
improve the quality of Rwanda’s coffee fol owing the pro-
depicts the production variations experienced between
mulgation of the new coffee sector strategy in 1998. How-
1986 and 2004.
ever, the country’s export coffee remains largely obs-
Between 1973 and 1994, coffee production was gene-
cured on the global market.
ral y above 20,000 ton per year. The relatively high output
Chal enges exist on how to effectively establish the
is explained by coffee policy adopted by the then gov-
country’s coffee on the international market and also to
ernment which was predicated on the subsidization of
ensure that the marketing system keeps up with changes
inputs including coffee plants. Coffee was also bought at
in the dynamic global market for high quality coffee
a fixed price to guarantee a minimum income threshold to
(Ntahontuye, 2008). Strategic management of the coun-
smal holder farmers. Currently, the main emphasis of
try’s niche markets remains largely unexplored. This
government policy is to improve the quality of coffee
factor has also contributed to declining export earnings
produced by farmers to ensure that it fetches a premium
for coffee in the country. Classification and management
on the international market. However, little has been
of the international market for Rwandese coffee is critical
done to create an international market niche for local
from two perspectives. By classifying markets in terms of
brands of coffee. Rwanda’s specialty coffees are sold
a given set of parameters, it is possible to identify the
international y through fair trade deals. With competition
lucrative nature of a given market. This wil create the
growing from newcomers such as Vietnam, the govern-
basis for an international marketing management pro-
ment has decided to focus on high-grade coffee with the
gram with appropriate objectives, strategies and plans
aim of returning to 1990 production levels by 2010.
that result in the successful realization of foreign market
In terms of marketing, coffee accounts for at least 50%
opportunities (Moutinho, 1991). In this context, properly
of national export earnings. However, Rwanda’s coffee
managed plans for export coffee have a direct bearing on
marketing system has not been able to keep up with
foreign exchange earnings and thus the economic deve-
changes in the global market for high quality coffee. Only
lopment of the country. Secondly, strategic planning is
20% of the country’s coffee can qualify as specialty co-
important in maintaining leverage in foreign markets as
ffee today, implying that the bulk of exported product is
wel as designing appropriate brand policy for the busi-
low-grade and sel s at lower prices. These international
ness (Moutinho, 1991). Two issues in strategic planning
price variations have trickled down to the household level
are markets and competition. Myriads of strategic
in the form of low farm returns. As a result, decision
management models that include the Boston consulting
makers in the coffee sector have instituted a number of
group matrix (BCG), shel directional policy matrix,
initiatives to better understand factors affecting farmers’
general electric/ mckinsey model exist to systematical y
production decisions and their attitudes about coffee.
analyze markets using various parameters such as mar-
Observations have shown that a number of farmers have
ket size, market growth, level of competition, cyclicality,
moved away from coffee or removing more trees, or
norms and values of the target market. Choice of the
“decaffeinating” their fields.
model to use depends to a large extent on the availability

of data and the rigor of analysis. This study is concerned

with analyzing coffee export marketing using the BCG
Coffee export marketing in Rwanda
matrix, an analytical tool that has been widely used in

strategic management.
Over the years, traditional markets for Rwanda coffee
The objectives of this paper are:
brands (Maraba coffee) include Germany, Belgium, USA,

212 Afr. J. Bus. Manage.






Figure 1. Coffee production in Rwanda (1986 - 2004).



France, great Britain and Switzerland. In terms of marke-
high mil ing costs. From the factory, coffee samples are
ting, the direct sel ing method is used and the bulk of the
sent to the OCIR café warehouse and the agency
exported product is shipped through Mombassa in
classifies different qualities from the sample and provides
Tanzania (east African fine coffee association, 2008)
the export certification. As Rwanda is a land-locked coun-
(Figure 2).
try, coffee is transported mostly by road to Mombasa,
General y, the value of exported coffee has been
where coffee reaches international buyers. The libera-
declining since 1990. Several production and marketing
lization of the industry has stimulated private investment
related issues have been suggested to explain these
and changes at the firm level. Exporters are now looking
developments. These include political instability expe-
for specific niches in the U.S and Europe for specialty
rienced in the early 1990s, high costs of inputs, shortage
coffee, as the bulk market does not offer interesting pros-
of farming land, poor agronomic practices and inade-
pects due to the high world coffee supply.
quate market penetration strategies (Ntahontuye, 2008).


In the early 1980s, coffee exports were handled by two
Current policy for the development of coffee sector
companies namely RWANDEX and ETIRU and the gov-

ernment had a high capital share in those companies.
In 1998, the government of Rwanda developed the new
From 1988 until 1991, OCIR Café was authorized to
coffee sector strategy. This policy focuses on three main
commercialize coffee. With the liberalization of coffee
areas affecting coffee sector which are production, coffee
industry, the local market trade as been undertaken by
quality and farmer revenues (OCIR, 1998). To increase
private operators and coffee growers’ associations, which
production, the current policy takes into account the inter-
bring the parchment coffee to mil ing factories. Until 1994,
national coffee price and coffee growers are paid accor-
the farm gate price was fixed by the government and
dingly. The removal of the coffee export tax wil facilitate
remained constant for the whole coffee season. There
this. This wil enable farmers to be paid high prices giving
was a stabilization fund designed to avoid the fluctuation
them incentives to increase production if world prices are
of farm gate prices. In 1994, the fund was cancel ed; the
not low. In addition, coffee extension services wil focus
price is currently based on the international coffee
on regions suitable for the crop. To improve coffee qua-
market. OCIR café meets once per week with exporters
lity, the policy notes the provision of pulping machines to
who are also coffee mil ers to fix the weekly reference
be used in processing and to offer extension services on
price of parchment coffee. The role of this price is to
how to better process coffee cherries. To increase farmer
provide market information to coffee growers who are
revenues, the creation of farmers’ associations can ena-
sel ing parchment coffee to col ectors. The farmers,
ble farmers to get bargaining power, leading to a higher
however, have no role or voice in fixing the reference
share in the coffee export value. Moreover, they may
price. Due to the low level of production, the mil ing
easily obtain technical assistance to produce a high value
factories operate under capacity and exporters tend to
coffee. Furthermore, they are likely to invest more in
lower the reference price in order to cover their relatively
coffee when they are able to sel their product at high

Mutandwa et al. 213



70
60
50
40
i
l
i
o
n
s
)
$

(
m
30
S
U
20
10
0
1988
1990
1992
1994
1996
1998
2000
2002
2004
Year


Figure 2. Value of Coffee exports in Rwanda (1988-2003).



prices. The provision of marketing information by OCIR
generate a lot of cash. Stars wil be cash cows if they
café to coffee stakeholders is another policy instrument to
maintain their market share but the growth rate declines
achieve transparency in distributing revenue from coffee
over time. Strategic options for stars include Integration-
sales.
forward, backward and horizontal, market penetration,

market development, product development and joint ven-

Analytical frame: The Boston consulting group matrix
tures. Dogs have low market share and low growth rate

and do not generate significant amounts of cash or req-
The BCG matrix was initial y developed in the 1970s by
uire lower cash investment. Dogs are usual y referred to
the Boston consulting group, an American based consul-
as cash traps as they use up money in the business and
tancy firm. The matrix has been used extensively as a
could be considered as candidates for divesture (ICMBA,
portfolio management tool for businesses and in the iden-
2007). Strategic options would include retrenchment (if it
tification of priorities in a company’s product portfolio opti-
is believed that it could be revitalized), liquidation and
mization and therefore aid effective resource al ocation
divestment (if you can find someone to buy) Question
(The executive fast track, 2008). Its uses have also been
marks are growing rapidly and wil require a lot of cash
extrapolated to the analysis of markets and evaluation of
investment than they can generate. Question marks have
product lines or any other cash-generating entities (Wiki-
high cash demands and generate low returns, because of
pedia, 2008). The matrix uses two dimensions namely
their low market share. Strategic options for question
market growth and market share as a basis for classifying
marks include market penetration, market development
strategic business units or markets. According to the
and product development. There are four strategic mana-
model, market growth indicates the extent of industry att-
gement decisions that can be made by a company after
ractiveness while market share is used as a proxy vari-
classification viz. harvest (from cash cows), divest (from
able for competitive advantage (ICMBA, 2007). The hori-
dogs and some question marks), maintain and invest (in
zontal axis of the BCG matrix shows the relative market
cash cows) (Kotler, 2003). Despite its usefulness, the
share while the vertical axis depicts the rate of market
BCG matrix has been criticized for a number of reasons
growth. Relative market share is calculated by making
that include the fact that the market share and growth
reference to the largest competitor in the market. On the
rate are not the only parameters for assessing industry
basis of these two variables, strategic business units or
attractiveness, no clear definition of what constitutes a
markets are classified into cash cows, stars, dogs and
market and problems on getting data on market share
question marks. Cash cows refer to strategic business
and growth (The executive fast track, 2007). As a result
units that have a high return on assets and thus generate
of these weaknesses, more comprehensive models are
a lot of cash. Such businesses represent a significant
now being used by firms particularly in developed coun-
source of cash for the firm. The strategic options are
tries. Other contemporary marketing models used include
include product development and concentric diversifica-
McKinsey, the general electric model and shel directional
tion. Stars are characterized by high relative market
policy model. However, these models are more data
share and high market growth rate and they also
intensive and may not be useful in may not be useful in

214 Afr. J. Bus. Manage.





Figure 3. The Boston consulting group matrix.
Source: Wikipedia, (2008).



cases where researchers are limited by available data.
Gisenyi, Butare and Kigabiro which are depicted in the map (Figure
In this paper, the BCG matrix is used to analyze the
4).
potential of the different markets to which Rwanda coffee


brands are marketed by considering the rate of market
Research approach
growth and relative market share (Figure 3).


In this study, both quantitative and qualitative data were used to
answer the main research questioned posited. Quantitative data in

the form of secondary data on coffee exports by destination was
RESEARCH METHODOLOGY
used. Qualitative data was largely based on semi-structured inter-

views with key stakeholders in the coffee sector. Both types of data
Description of study area
gave the study the positive and normative dimension (Ayaya,

1997).
Rwanda is largely an agrarian country of based on crop and live-


stock systems. The country has a total population of 9 mil ion peo-
Data collection and analysis
ple and 92% of the population resides in rural areas (MINICOFIN

Report, 2003). Tea and coffee are the main crops in crop agricul-
The researchers used the Boston consulting group matrix to classify
ture while cattle, goats and sheep are the main types of livestock
coffee export markets into four cel s namely cash cows, stars, dogs
found in most parts of the country. Coffee production has mostly
and question marks. Data on coffee exports (from 2005 - 2008) dis-
been the preserve of smal holder farmers who possess landhol-
aggregated by destination was used and was obtained from
dings of less than 1.5 ha per household. The earliest strains of
national statistical offices in Kigali and the east African fine coffee
coffee grown during the early 20th century were introduced by Ger-
association (EAFCA). By identifying which markets could be classi-
man missionaries (MINICOFIN Report, 2003). Col aborative crop
fied as cash cows, dogs, stars and question marks, the outputs
breeding efforts by government research institutes such as the
from this research are useful in assisting policy makers on the
Rwanda institute of agricultural science (ISAR) have resulted in the
strategic management issues which can enhance exports of coffee
development and release of coffee varieties including Mibilizi,
in the country. This study is largely exploratory given the limitations
Jackson, Catuai, BM139, Caturra140, Pop330/21 and Harrare. The
of data faced by the researchers particularly for market segments in
crop is typical y grown farms, with steep slopes and cool temperate
the country destinations. Researchers used semi-structured inter-
climate of around 18 – 25°C. Soil types are predominantly volcanic
view schedules to engage key stakeholders in the coffee industry
and highly fertile.
on issues related to the country’s trade policy with specific refe-
Some of the coffee growing regions include Cyangugu, Kibuye,
rence to export coffee and to understand the broad issues affecting

Mutandwa et al. 215





Figure 4. Administrative Map of Rwanda showing coffee growing regions.



international marketing of coffee in Rwanda. The fol owing stake-
To calculate relative market share for a given destination, the res-
holders were an integral part of the study.
earchers used the fol owing formulae.


i.) Coffee Farmer organizations.
V
i .) East African Fine Coffee Association.
M = D 1
× 00
i i.) Ministry of Agriculture/Trade.
VL
iv) Non-governmental organizations responsible for coffee produc-

tion and marketing.
Where M is the relative market share, V
v.) OCIR Café, Rwanda.
D is the value of coffee
exported to a given destination at a given time period, V

L is the
value of exported coffee by the market leader. The market leader in
Secondary data was analyzed using microsoft excel program. Two
coffee exportation is Brazil (ICARD, 2002). Between 2004 and
main parameters were of interest to researchers, rate of market
2008, the average value of exported coffee is US$ 271,000,000 per
growth and relative market share. To calculate the rate of market
annum. This value was therefore used as the benchmark for calcu-
growth, the fol owing formulae was used,
lation of relative market share.


(Y Y

2
1)
R =
×100
RESULTS AND DISCUSSIONS
Y1


Rwanda's share of exports by major trading blocs
Where Y
(2005 - 2008)
2 is the value of coffee exported in period Y2 in US$, Y1 is
the value of coffee exported in period Y

1. R represents the rate of
market growth between period Y1 and Y2 and is expressed as a %.
Rwanda’s exported coffee over the last 4 years has

216 Afr. J. Bus. Manage.



Table 1. Value of exported coffee by destination (2005 - 2008).

Continent
Country
Total value of exported coffee (US$)
AFRICA
Kenya
65,280

Morocco
310,960

Equator
167,623
AMERICA
USA
7,245,381
ASIA
China
204,569

Israel
362,753

Japan
234,340.00
CIS
Oman
63,000

Russia
855,878
EUROPE
Germany
13,469,221

Belgium
36,111,390

France
16,668,853

Hol and
2,816,886

Italy
468,672.00

Switzerland
27,336,505

Portugal
24,354.00

Romania
1,509,002

Spain
230,032

Sweden
42,182,932

UK
10,749,771

Canada
112,408.32

Source: OCIR Café, 2008.




eminently been the Arabic type. It is exported to various
2008).
destinations in Africa, Europe, Asia, and America. There

are 21 countries to which it is exported and these are

depicted in Table 1. Niche markets include Belgium,
Market growth rate
Switzerland, France, Germany, Sweden and the USA. At

the continental level, the European market accounted for
In evaluating the attractiveness of a given market, the
56% of al marketed coffee, fol owed by Asia at 40.9%,
BCG matrix considers two variables namely the rate of
America at 3% and Africa at 0.13%. Various reasons can
market growth and relative market share. The rate of
be proffered to explain this scenario. Firstly, Rwanda has
market growth is an important variable since it deter-
in recent years making strides to improve the quality of
mines opportunities for marketing and it also has a direct
export coffee which fetches a reasonable price and there-
bearing on the success of the business. The results of
fore attracts international buyers from Europe and
market growth rate over the 4 year period are shown in
America. Secondly, the high demand for the country’s
Table 2.
export grade coffee is related to high levels of coffee con-
In terms of market growth rate, Sweden, Netherlands,
sumption in America and Europe and high preference for
France, Japan experienced positive rates of market grow-
specialty coffee by most consumers in the aforemen-
th. Despite the fact that Germany, Belgium, UK and USA
tioned regions (Topik, 2007). In the USA, individual
accounted for a significant proportion of exported coffee,
consumers drink an average of 3 cups per day while
the market growth rates were negative over the 4 year
European consumers take two cups per day (Wikipedia,
period. This can be attributed to decreasing production

Mutandwa et al. 217



Table 2. Rate of market growth of each destination (2005 - 2008).

Destination 2005
2006
2007
2008
Average rate market growth (%)
Germany

-11
-100

-37
Belgium

103
-59
-91
-16
Canada

-100


-33
China


-100

-33
France

89
-91
10097
3365
Hol and


-97
206
36
Israel

-74
-100

-58
Italy



265
88
Japan



9174
3058
Kenya




0.00
Switzerland

112
-100

4
Portugal

-100


-33
Oman




0.00
Russia

-100


-33
Romania

2
-100

-33
Spain

-100


-33
Sweden

107
250
117
158
Morocco

-100


-33
UK



-89
-30
USA

-31
54
-61
-13



particularly in the 2005/06 up to the 2007/08 coffee
ractive on the basis of the two variables of the BCG
season.
matrix and should be maintained as they represent signi-

ficant sources of foreign exchange for Rwanda. The

increasing market prospects for Rwanda coffee in Asia,
Relative market share
particularly in Japan requires further investment in marke-

ting of the product to ensure that the market is turned into
General y, export coffee from Rwanda accounts for a
either a star or cash cow. On the other hand, markets in
very smal proportion in global coffee trade. However,
countries such as Kenya, Israel, Morocco and China
Sweden, Belgium, Switzerland, Germany and France
have not been growing significantly over the last 4 years
emerged as the key markets for coffee. This observation
and also constitute a smal proportion of export coffee
could be related to the fact that most of the country’s
earnings. Whilst theory suggests, divesting from these
export coffee has been marketed to Europe and the US
markets, there is need to further explore market opportu-
in the last few years (Table 3).
nities for coffee in these countries so as to provide suita-

ble coffee products in dog markets. Furthermore, a broa-

der range of variables such as the political, socio-cultural,
Market classification using the BCG matrix approach
technological and regulatory environment unique to each

market need to be considered (Moutinho, 1991) (Figure
Kotler (2003) notes that there are four strategic manage-
5).
ment decisions related to the four cel s of the BCG matrix

which are invest, divest, maintain and improve. Stars

usual y represent the best growth and profit opportunities
Conclusions and Recommendations
for an organization. When rate of market growth and rela-

tive market share are considered, France emerges as the
In this study, the BCG matrix was used to classify coffee
star market for export coffee and thus should be main-
markets for Rwanda coffee using two main parameters
tained. Cash cows are business entities that generate
namely relative market share and rate of market growth.
substantial cash for the business. Cash cow markets for
Whilst Rwanda’s export coffee is an important source of
Rwanda export coffee are Germany, UK, Russia, Swe-
foreign exchange, it constitutes a smal proportion in
den, Switzerland, and Belgium. These markets are att-
global coffee trade. A predominantly eurocentric marke-

218 Afr. J. Bus. Manage.



Table 3. Relative market share.

Destination
Average value of coffee exports
Relative market share
Germany
3367305
1.24
Belgium
9027848
3.33
Canada
28102
0.01
China
51142
0.02
France
4167214
1.54
Hol and
704221
0.26
Israel
90688
0.03
Italy
117168
0.04
Japan
58585
0.02
Kenya
16320
0.01
Switzerland
6834126
2.52
Portugal
6088.50
0.00
Oman
15750
0.01
Russia
213970
0.08
Romania
377251
0.14
Spain
57508
0.02
Sweden
10545733
3.89
Morocco
77740
0.03
UK
2687443
0.99
USA
1811345
0.67






Stars

Question marks












France
Japan



High














Market growth
rate (%)







287

Cash cows
Dogs




Germany Russia
Hol and
Kenya


Belgium
UK

Portugal


Low
Sweden


Morocco



Switzerland

Israel







China







Italy





High
0.69

Low





Relative market share


Figure 5. The BCG matrix for export coffee.





Mutandwa et al. 219






ting strategy focusing on Sweden, Switzerland, Germany,
ICARD (2002). The impact of the Global coffee trade on Dak Lak
Belgium, UK, Russia and France was adopted. In order
Province, Vietnam: Analysis and Policy Recommendations, Final
to capture ful y lucrative opportunities that exist in the
Draft, September 2002, OXFAM Publications.
ICMBA (2007). The Boston Consulting Group Matrix, available at
coffee sub- markets or segments in the aforementioned
http://www.icmba.com.
countries, there is need to understand the social, eco-
Kotler P (2003). Strategic Marketing Management, 4th edition, Prentice
nomic, technological and political factors that affect con-
Hal , New York.
suming sub-populations in these countries (Moutinho,
MINICOFIN Report (2003). Poverty Reduction Strategies Draft Report,
MINICOFIN, Rwanda.
1991). Kotler (2003) argues that concentrated marketing
Moutinho L (1991). Problems in marketing: Analysis and Applications,
which focuses on existing segments in the broader
Paul Chapman Publishing Ltd, London, UK.
market is more effective than mass marketing. Promotion
Ntahontuye F (2008). Factors affecting the adoption of coffee growing in
of Rwanda coffee can be formalized through participation
Rwanda: A case study of Rubavu District, Higher Institute of
Agriculture and Animal Husbandry, Busogo, January 2008.
in trade fairs and exhibitions on coffee organized in Bel-
OCIR-Café (2005). Situation actuel e du café : RWANDA, Available at
gium, Switzerland, Sweden, German, England USA and
http:// www.ocir.vrsrv.com.
France. There is also need to foster relationships with the
Pil ai KM (1984). A text book of plantation crops scientific farm
international buyers initial y from the aforementioned
consultancy service (P) Ltd Madras.
Richerzhagen C, Virchow D (2002). Sustainable utilization of crop
countries by organizing visits in Rwanda to match needs
genetic diversity through property rights mechanisms: The case of
of consumers in these countries with the type and coffee
coffee genetic resources in Ethiopia, In: The economics of incentive
quality expectations (Kotler, 2003). Given the relatively
mechanisms for biodiversity conservation: Property rights, BioEcon
high rate of market growth in Asia, particularly in Japan,
Workshop, 30-31 May, 2002.
The Executive Fast Track (2008). The Boston Consulting Group Matrix,
there is need to design an international advertising pro-
Available at http://www.12manage.com.
gram for this lucrative market. Promotional activities
Topik S (2007). The World coffee market in the eighteenth and
which include personal sel ing by means of Rwandese
nineteenth centuries from colonial to national regimes, Working paper
nationals resident in these countries, sales promotions,
No 04/04, Department of History, University of California, Irvine, USA,
p. 19.
public relations and use of brochures are suggested. In
Wikipedia (2007). Coffee: Origins and History, Wikipedia Publications.
order to broaden the market for the country coffee, there

is need to design a regional marketing strategy focusing
on the East African Community (EAC). Participation in
regional events such as cupping competitions should be
consolidated as a way of improving the quality aspects of
the country’s coffee and to further market it.


REFERENCES

Ayaya O (1997). Macro-economic aspects of agricultural credit lending
in Kenya, Savings and Development, Vol. (1), 1997, Fondazione
Giordano Del ’Al more Publications.
ECART (2007). Empowering smal holder farmers in markets: Changing
agricultural marketing systems and innovative responses by
producers economic organizations, Brief of ESFIM Working Paper 2,
NRI-CIRAD-WUR, September 2007.
FAO (2008). Post harvest handling and processing of coffee in African
countries, FAO Repository, Available at http://www.fao.org/docrep
/003/X6939E.., Agriculture and Consumer Protection.





















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