Marketing Excellence Maatouk 1960 Established in 1960 in downtown Beirut by Mahmoud Maatouk, a young 18-yearold entrepreneur, Maatouk 1960 started as a local coffee roaster and grew to become a national coffee manufacturer whose name is synonymous with premium-quality coffee, be it Lebanese coffee, filter coffee, or espresso. P a s s i o n a t e l y attracted by the innovation and product development side of the business, the Maatouk family overlooked the importance of monitoring the competitive surroundings, market dynamics, and the purchasing behavior and consumption habits of customers. With competition intensifying and competitors investing heavily in venues and product mix, Maatouk found itself struggling to maintain its sales and share despite the growth of the Lebanese coffee market locally or overseas. To remedy this situation, management realized the need for reliable market information as a basis upon which to base their new competitive strategy. According to Marketing Manager Yusra Kanj, "a valuable decision management took which had major implications on our decision-making process was subscribing regularly to the coffee category of the A. C. Nielsen Retail Audit. The report revealed huge weaknesses in Maatouk's distribution and market coverage. It also shed light on the presence and share of each major player in the category across different geographical regions and trade channels with in-house analysis of their strengths and weaknesses." To ensure proper coverage, Maatouk found that a huge investment in human capital, vans, and technology was required, which would not be reasonable for such a limited product portfolio. In 2010 a strategic decision was made to outsource the distribution operation to a specialized national distributor that can ensure a proper panLebanon market presence for Maatouk products. Change was not limited to the distribution strategy. Management also decided to revise all its marketing mix elements including product packaging, pricing, and communication. Kanj Maatouk noted that "the exercise was led by a team of professionals from leading regional research houses who initiated tailor-made studies of the existing market conditions, trends and techniques in packaging, pricing, and communication, and to suggest recommendations for the launch of the re-engineered Maatouk product line." This undertaking resulted in the architecture of the Maatouk brand being changed, with color coding to emphasize the heritage, and in repositioning the brand through innovative packaging and a creative but focused communication, pricing, and distribution strategies. "The right positioning is the key to the success of every brand," said Abdel Halim Jarakji, General manager. Management also focused on export markets. Market research reports by Euromonitor provided valuable insights about macro-country indicators as well as specific market information related to coffee, such as volume, value, trends, consumer habits, and competition. In addition to field visits by marketing and top management, the management used that information to identify promising regional and world markets and to decide how to penetrate these potential markets. Maatouk's current manufacturing facility handles all the export markets, focusing on serving the Levant (Lebanon, Syria, Jordan, and Iraq), as well as the GCC, North Africa, Europe, and the Americas. "Market intelligence and research can never be 100% accurate; yet it is highly insightful and enlightening," concludes Jawad Maatouk, owner and major shareholder of Maatouk 1960. Sources: www.maatouk.com; personal interviews with Maatouk management: Yusra Kanj, Marketing Manager; Jawad Maatouk, Owner; Abdel Halim Jarakji, General Manager

Questions 1.)

From the concepts presented in the CASE, attempt to define the problem, decision alternatives, and research objectives faced by Maatouk's management 2.) Identify the sources of secondary data that Maatouk utilized. How were these sources helpful? 3.) If Maatouk was to gather primary data, which research approach would you recommend? 4.) Comment on and discuss Jawad Maatouk's remark that "Market intelligence and research can never be 100% accurate; yet it is highly insightful and enlightening."