GLOBAL STRATEGY

GLOBAL STRATEGY:L CARIBOU COFFEE INC

GLOBAL STRATEGY: CARIBOU COFFEE INC

Introduction

The purpose of this report is to conduct market analysis and recommend appropriate marketing strategies for CARIBOU COFFEE INC Coffee.

In the report, we will first look into CARIBOU COFFEE INC's goal, its product and markets. Then we will look into the key actions and decisions that lead to the success of the company. After that, we will discuss the issues that CARIBOU COFFEE INC is facing in this competitive global market. For each strategic issue, appropriate marketing recommendations for the company are made respectively.

Background and situation analysis

CARIBOU COFFEE INC Coffee starts in 1971 with a single store in Seattle's Pike Place Market. Today, they are privileged to welcome nearly 35 million customers on a weekly basis, in more than 12,000 stores around the world. CARIBOU COFFEE INC's goal is to become the leading retailer and brand of coffee in each of its target markets by selling the finest quality coffee and related products and by providing each customer a unique “CARIBOU COFFEE INC Experience”. “CARIBOU COFFEE INC Experience” is a third place after home and work with superior customer service, clean and well maintained retail stores which reflect the personalities of the communities in which they operate. CARIBOU COFFEE INC strategy for expanding its retail business is to increase its market share mainly by opening additional stores in existing markets and to open stores in new markets. In support of this strategy, CARIBOU COFFEE INC opened 1,040 new company operated stores in fiscal 2006.

During fiscal 2006, CARIBOU COFFEE INC Coffee Company operated retail stores accounted for 85% of total net revenues. (CARIBOU COFFEE INC Annual Report 2006) In addition to company operated stores, CARIBOU COFFEE INC works with certain carefully chosen business to operate licensed stores in various places. Its strategy is to reach customers where they work, travel, shop and dine by establishing relationship with people that share the Company's values and commitment to quality. These relationships take various forms, including licensing arrangements, foodservice accounts and other initiatives related to the Company's business. Licensed and Foodservice stores can be found on college campuses. Customers can enjoy their CARIBOU COFFEE INC in select supermarkets, hotels and military bases throughout foodservice venues around the world. During fiscal 2006, specialty revenues accounted for 15% of total net revenues. (CARIBOU COFFEE INC Annual Report 2006)

CARIBOU COFFEE INC also recently has strategically sold coffee and tea products through other channels such as supermarkets, or non-traditional retail channels such as United Airlines, Marriott International, Holland-American Cruise Line, and Department Stores.

Market analysis

To achieving growth and making profits, CARIBOU COFFEE INC started to go international since 1996. International connections can build a strong foreign presence which helps to increase brand recognition and also increase the domestic business. The more stores CARIBOU COFFEE INC has around the world, the more loyalty and familiarity can be built among its existing and potential customers.

Macro Environmental Analysis

The following are the macro environmental variables which are likely to impact CARIBOU COFFEE INC when ...