Caribou Coffee Strategic Analysis

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Strategic analysis of Caribou Coffee Company
The company was founded in 1992 in Minnesota, which is the second largest company owned gourmet coffee house based on the number of coffee houses in USA. The company has focused on high quality products and offering the customers high quality gourmet coffee, beverages, teas, baked goods, whole bean coffee, branded merchandise and related products. It also sales its products to grocery stores, mass merchandiser, office coffee providers, airlines, hotels, sports and entertainment venues, college campuses and other commercial customers. The company uses the high quality of Arabia coffee beans and tries its best to meet customer’s preference and expectation. The company also focuses on creating a unique coffee house environment which provides an inviting and comfortable atmosphere for customers, especially for take-out customers the quick service. It also focuses on quality customer’s service. The stop provides compatible and personal service in a clean, smoke free environment. In 2003 under the direction of Mr. J.Coles, the chief executive and president of the country and the rest of management the company took some strategic initial to improve the operation which include the development new product and promotion, improving customer’s service and selection and training of stores staff, increasing coffee house opening and strengthen the selection of site strategy. In this period, net sales of the company grew up and expanded form 203 to 322 coffee houses it also expanded geographically and internationally. As of June 28, 2009 it has 414 stores, 97 franchised location and 522 coffee houses which include 108 franchised and licensed locations. 2. INDUSTRY OVERVIEW

Gourmet coffee is coffee roasted using high quality coffee beans such as the Arabia beans which are consider superior to Robusta bean, uses mainly in non gourmet coffee. High quality Arabia with mild aroma gives pleasant flavor which is suitable for gourmet coffee. Gourmet coffee is an affordable and frequent use product. According to the national coffee association national coffee drinking trend 2004, approximately 16 percent of American adults drink gourmet coffee beverages on a daily basis and about 56 percent drink these beverages on a occasional basis which also indicate an averaged 2-3 cups per day for daily gourmet coffee drinker in 2004 it will get highest growth opportunity by the broad consumer appeal and changed life style trends. According to SCAA, there was a huge growth in the US specialty coffee market from 2002 to 2004. But gourmet coffee markets the growth due to the new coffee product popularity of gourmet food market, brand awareness and broad distribution through super markets. a. MENU AND PRODUCTS:

Gourmet coffee market is base on few drink plate form. Most of the coffee drinks are decaffeinated. 1. Espresso.
2. Classics traditional coffee and coco beverages.
3. Wild: signature caribou coffee, based beverages such as truth mochas, hot apple blast, caramel high rise, camp fire mochas and mint condition. 4. Tea: include black, green and herbal tea.

5. Cold: iced coffees, blended coffee, cooler in flavor, including vanilla, espresso, caramel, chocolate and fruit flavored. Beverages contributed 79.8 percent of net sales from March 2004 to April 2005. Food items contributed approximately 9.0 percent and whole bean coffee 9.1percent of coffee houses net sales in this period. Rainforest blend brand is fair trade and organic certified. It helps to ensure the availability of the producers. The companies also offer a number of Caribou branded and coffee related equipment and merchandiser which are available in coffee house. The company is introducing “Bout gourmet” offering which will provide a variety of baked foods. Merchandise contributed 4.1 percent of coffee net sales in the above period. These products are also available outside of the...
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