Research by: Jose Gerardo Santamaria, Sandeep Puri, Maria Luisa Chua Delayco, & Rakesh Singh
Abstract
Brewing Peace was a company based in the Philippines that sold coffee beans. Despite having a base of 80 customers, 70 per cent of its business depended on 9 key accounts; this included its biggest buyer, Concepcion Coffee Enterprises Limited (CCEL), which accounted for 20 per cent of Brewing Peace’s revenues. After a ₱30 million order from CCEL with a profit margin of less than 20 per cent, a payment period of 90 days, and a short delivery time, the co-founder of Brewing Peace was forced to review its relationship with its biggest client. The dilemma facing Brewing Peace was that it could not accept this order on CCEL’s terms without jeopardizing the company’s payment terms with its vendors and affecting the supply for orders, worth ₱25 million, to its other customers.
Learning Objective
The case is designed for use in graduate-level courses on marketing, marketing strategy, business-to-business (B2B), sales management, or entrepreneurship. In a marketing course, it can be used in a segment that introduces CRM or KAM. In a B2B or sales management course, it can be used to analyze different issues that arise from B2B selling. After working through the case and assignment questions, students will be able to
- understand the different customer relationship management strategies;
- recognize the importance of customer acquisition, retention, and loyalty;
- understand key account management; and
- understand marketing strategies such as market penetration, product development, market development, and diversification.
Issues: customer relationship management, key account management, KAM, Philippines, coffee industry, marketing strategy
Disciplines: Marketing, Entrepreneurship, International
Industries: Agriculture, Forestry, Fishing and Hunting, Wholesale Trade
Setting: Philippines, Small, 2020
Intended Audience: MBA/Postgraduate
To cite this case: Santamaria, J. G., Puri, S., Delayco, M. L. C., & Singh, R. (2020). Brewing Peace Philippines: Customer relationship management. Ivey ID: 9B20A056. London, Canada: Ivey Publishing.
To access this case: https://www.iveycases.com/ProductView.aspx?id=110162
