Folgers Coffee Company Case Study

The best part of waking up is getting to enjoy a nice cup of coffee, whether hot or iced, it’s an easy way to jumpstart your day. Everyone enjoys it across the country, from college students to senior citizens. Folgers Coffee Company, founded in 1850, quickly became America’s favorite coffee company, even beating large chain coffee shops like Starbucks. (Gontcharova). Folgers Coffee is owned by the J.M Smucker Company, which also produces other products such as Pillsbury, Crisco, and even products for furry friends like Milk-Bone and Kibbles ‘n Bits. (About Us). Folgers itself produces various products including simple ground coffee beans, instant coffee, single serve, and several enhancers to make the beverage even better. The company uses …show more content…
With the product being sold in retail, it offers it to the consumer at a convenience. The product is provided to the consumer through several retailers, such as Wal-Mart, Target, and Big-Lots, and even in pharmacies like CVS and Walgreens throughout the country. This not only helps provide the product at a convenience, but also at a competitive price. This is because the product is being sold through different retailers, and this forces the retailers to provide the products at a cheaper price compared to if the company itself sold the product to the consumer. However, by selling the product retail, it does create a middleman. The middleman would be the retailer. They would be the ones who will take the product from the company and offer it for sale to the consumers. This does however cause there to be a slight raise in the prices, due to the fact that the retailers need to make a profit off of each sale. But, because of the convenience and the competition of prices the product is readily available to the consumer. Since the consumer has easy access to the coffee, sales for the company will go …show more content…
Folgers is able to do this because of the producers they choose to grow their beans, the retailers they choose to sell in, and because of the overall care they put into their product. They ensure that they whole-sale price of the product it reasonable to ensure that the retailers are able to make a profit as well that the consumer receives a quality product as cheap as possible. They also ensure that the consumer knows about the product by producing many forms of advertisement. Because of the hard work the company puts forth, it is easy to see why they are America’s number 1 coffee