Mavis Bank Coffee Factory (MBCF) Ltd. uses a differentiation strategy to market its products in the US. This is providing original quality coffee unique to the Blue Mountain area of Jamaica which is sweat with balanced acidity. These unique features are from the region’s geographic and climatic conditions which combine to produce coffee not found anywhere else in the world. BMCF then roasts the coffee three times a week in order to provide quality and fresh coffee to the consumers. This coffee is hard to duplicate or match both by other coffee producers in the Blue Mountain region and in other parts of the world.
Differentiation as a competitive strategy has addressed the issue of premium prices for BMCF coffee. Setting the MBCF coffee apart as unique and original coffee from the Blue Mountain area has assured the consumers of the quality. This has acquired a loyal clientele who can afford and pay premium prices.
The differentiation of BMCF coffee with premium prices will be advantageous to the company when the current recession ends and consumers in the US are able to spend on their favorite coffee. This will be good business for the company and the country as the value for the Jamaican currency will increase and in return their foreign exchange earnings. However, the strategy might be affected by US politics as democrats, who are in the current administration, favor policies that encourage government intervention in trade and the economy as a whole. Such policies might favor companies that import coffee beans and do value addition in the country such as Starbucks as opposed to foreign companies that sell coffee products directly to the US consumers. This will result in stiff competition with such companies, which works against MBCF Ltd.