1. Macro-environment The Philippines is one of the few countries that produces the four varieties of commercially-viable coffee, this includes Arabica, Liberica (Barako), Excelsa and Robusta coffee. Coffee occupies an important place in the Philippine economy, being wildly consumed as a beverage. In the world trade, coffee ranks first among non-staple food and it is rated as the fifth most important agricultural product. Filipinos are known to be the great consumers of coffee. While coffee is a global commodity, and Starbucks is a global phenomenon, the global culture surrounding coffee has eclipsed the fact that Filipinos hold a special place in their hearts for coffee. Coffee marks the Filipino’s daybreak. It also graces the Filipino’s mid-afternoon snack. It may even find itself as a Filipino night owl’s post-dinner treat. That’s why the Philippine coffee industry has found more room to grow. Just when everyone thought that no one could break Nescafe’s monopoly on coffee production, San Mig Coffee found its own niche in the market. Then Kopiko took the 3-in-1 niche by storm with its delicious Kopiko Brown Coffee.
Table 4.1
Economic Macro-Environment
Factor | Implication | Effect on Proposed Product | ADO expected Annual inflation rate to decrease from 4.3% in 2014 to 4.0% in 2015 | Reducing commodity prices should be expected | Reduced cost of sales and increased sales revenues | GDP growth is forecast at 6.4% in 2014 and 6.7% in 2015 | Lower unemployment rates and ceteris paribus assumption prevails | An increase in demand and in revenue | Private consumption makes up nearly 75% of the economy and remains the mainstay of growth | Fast moving consumer goods are expected to occupy a large percentage in the overall private consumption | Reduced price; higher turnovers | Volume sales seen to be improved by 9.0%,
