Peet's Coffee & Tea case study: how to create a unique coffee offering through a diversified marketing and distribution strategy

Peet's Coffee & Tea case study: how to create a unique coffee offering through a diversified marketing and distribution strategy

Introduction

This report on Peet's Coffee & Tea forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. It looks at how the coffee shop company has managed to retain its original brand values as a specialty coffee retailer, while undertaking diversified marketing and distribution.

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DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
Company heritage and tradition can be a powerful tool for marketing coffee 2
While Starbucks has strayed from its roots, Peet's has remained focused on its original strategy 2
Starbucks and Peet's shared the same heritage but now operate under different business propositions to a different end 2
The company's distinctive coffee roasting technique offers a key point of differentiation 3
The brand is built around the freshness of the beans 3
Peet's coffee is produced by small-batch roasting, which it claims produces better quality beans 3
Peet's builds a larger roasting facility, but stresses it will retain the same quality levels, further demonstrating its unique offering 3
Peet's unique outlet format drives packaged coffee sales 4
Peet's coffee stores focus on the sale of packaged whole beans rather than coffee beverages 4
Peet's strategy is to grow in existing markets that have a high demand for specialty coffee 5
A successful multi-channel distribution growth strategy, proves specialty coffee can be sold mainstream and still preserve its exclusivity 6
Peet's has undertaken a well-executed multi-channel distribution model 6
Peet's further pushes into supermarkets, capitalizing on their profitability 6
The freshness of its retail whole bean coffee is a key selling point for Peet's 7
APPENDIX 8
Case study series 8
Methodology 8
Secondary sources 8
Further reading 8
Ask the analyst 8
Datamonitor consulting 8
Disclaimer 9
List of Figures
Figure 1: Peet's new coffee roasting facility 4
Figure 2: Peet's Coffee & Tea focuses on the sale of wholebean coffee at its outlets 5
Figure 3: Grocery was the largest growing sector within the company's Specialty division in Q3 2007 7
Figure 4: Peet's packaged whole bean coffee comes in packaging designed to maintain freshness 7