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Prize winner
Case
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Reference no. 704-056-1
Published by: London Business School
Published in: 2004

Abstract

The Co-operative Group in the UK has successfully deployed a strategy of selling Fairtrade products including bananas, coffee, tea, wine and chocolate. Their ambition was to become the leading supermarket supporter of Fairtrade in the UK and to bring Fairtrade into the mainstream of UK grocery retailing. The case addresses the issues facing the head of brand marketing and the head of quality in seeking to expand the sales of Fairtrade chocolate. On the one hand they were having supply problems, their Fairtrade supplier was not prepared to make an own-label product for them, their existing own-label supplier was not prepared to supply Fairtrade chocolate, and their current fair trade chocolate was being made to continental European, not UK tastes. Expanding sales of Fairtrade chocolate would require possible dropping of their existing own-label supplier. In addition, expanding the Fairtrade chocolate range would mean dropping some of their existing products with possible loss of sales. Finally the impact of potentially moving to 100% Fairtrade chocolate was very unclear. A case on how to proceed must be prepared and presented to the board of the organisation.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 1998-2001.

Geographical setting

Region:
Europe
Country:
United Kingdom

Featured company

The Co-operative Group
Turnover:
GBP 4 billion
Industry:
Retailing
Other keywords:
1800 store network

Featured protagonists

  • Terry Hudghton (male), Head of Brand Marketing
  • David Croft (male), Head of Quality and Consumer Care

About

Abstract

The Co-operative Group in the UK has successfully deployed a strategy of selling Fairtrade products including bananas, coffee, tea, wine and chocolate. Their ambition was to become the leading supermarket supporter of Fairtrade in the UK and to bring Fairtrade into the mainstream of UK grocery retailing. The case addresses the issues facing the head of brand marketing and the head of quality in seeking to expand the sales of Fairtrade chocolate. On the one hand they were having supply problems, their Fairtrade supplier was not prepared to make an own-label product for them, their existing own-label supplier was not prepared to supply Fairtrade chocolate, and their current fair trade chocolate was being made to continental European, not UK tastes. Expanding sales of Fairtrade chocolate would require possible dropping of their existing own-label supplier. In addition, expanding the Fairtrade chocolate range would mean dropping some of their existing products with possible loss of sales. Finally the impact of potentially moving to 100% Fairtrade chocolate was very unclear. A case on how to proceed must be prepared and presented to the board of the organisation.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 1998-2001.

Geographical setting

Region:
Europe
Country:
United Kingdom

Featured company

The Co-operative Group
Turnover:
GBP 4 billion
Industry:
Retailing
Other keywords:
1800 store network

Featured protagonists

  • Terry Hudghton (male), Head of Brand Marketing
  • David Croft (male), Head of Quality and Consumer Care

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