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Business Strategy of Peet’s Coffee and Tea

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Peet’s coffee ran 200 retail stores, and it’s coffee product was available in over 8000 grocery stores across the country. Its total sales represent 34% of the country’s sales and 70% of the total profit.In 2008, the company sought to expand its multiples channels of distribution in the United States. Its primary focus was the West Coast market where it had a huge presence. The expansion efforts included the opening of 20 new retail outlets and expanding its products to over 2000 new grocery stores on the East Coast. The US has a vast coffee industry that is worth approximately $30 billion. The industry generates most of its revenues from coffeehouses that are currently over 20,000 across the country. Starbuck Corporation dominates the coffee specialty domain, which is highly competitive.Peet’s coffee competes with smaller coffeehouses such as Tully’s and Caribou Coffee. For it to gain an upper hand, Peet’s coffee should differentiate its products from those of its competitors. It can achieve this by selling itself to the consumers as a memorable experience. Moreover, it should focus its coffee business to a single distribution channel, for instance, the grocery. As a result, this would enhance the company brand awareness in those areas. The current recession in the US economy could severely affect Peet business since sales revenue based on luxurious coffee brand depends entirely on consumer confidence.Business model
Peet coffee focuses on the production of high-quality coffee products.&nbsp. It is known for its introduction of dark roasted Arabica coffee in the US. The company has one of the finest group of roasters who are considered to have great mastery in their craft after undergoing three of training.&nbsp.