Final answer:
Kreemo Coffee is employing a Product Differentiation strategy by promoting its coffee blend as superior due to the high content of Colombian beans, known for their quality. Colombian coffee is associated with quality due to the country's ideal coffee-growing conditions and history of coffee cultivation.
Step-by-step explanation:
The positioning strategy that Kreemo Coffee is demonstrating by highlighting the use of the best coffee beans from Colombia, particularly noting that they purchase more Colombian beans than any other company, is Product Differentiation. This strategy is used to distinguish a product from its competitors by emphasizing its unique characteristics. In this case, Kreemo Coffee is differentiating its coffee blend based on its high content of Colombian beans, which are associated with high quality.
There are clear advantages of specialization, both in terms of individual roles within a business, like a coffee shop, and in a broader economic context. For countries such as Colombia, having a comparative advantage in growing coffee allows them to export it to markets like the United States. Colombia's ideal conditions for cultivating coffee, and the influence of the National Federation of Coffee Growers of Colombia, underpin this advantage and boost the local economy through trade.
Colombian Coffee has been well-regarded historically due to its quality. Although Brazilian plantations produce more coffee overall, Colombia's high-quality coffee, grown at optimal elevations, has secured its reputation in the global market.
By applying the principles of specialization and utilizing a product differentiation strategy, Kreemo Coffee is positioning itself as a superior choice for consumers seeking a high-quality coffee experience. This strategy aligns with principles of monopolistic competition where differentiation helps to capture a distinct segment of the market.