The Joh. A. Benckiser Group, bought a majority stake in Peet’s Coffee & Tea Inc. in Dec 2012 and acquired Caribou Coffee Co. Inc. in a deal valued at approximately $340 million. To the consumer there should be no change in the brand. Do you see this acquisition a positive for Caribou Coffee?
The below questions relate to Caribou Coffee’s initial start-up as a business.
- Why was a marketing plan important to Caribou as they enter the market?
- Industry leader Starbucks has decided to pursue further sales growth by distributing its branded coffee through retail stores and expanding into the Latin American market, beginning with several outlets in San Juan, Puerto Rico. Should Caribou Coffee under the new management implement a similar growth strategy? Do you think that opening a drive-through window or putting a Caribou shop inside upscale food stores and SuperTarget outlets would be good strategies for Caribou marketers to consider?
- What do you think are two of Caribou’s internal strengths and weaknesses? Also, identify two opportunities for and two threats to the company’s success. Explain your answers.
- What types of environmental characteristics might influence Caribou’s strategic decisions during the next five years?
