Peet's Coffee Marketing Plan: Detailed Analysis and Recommendations

This report outlines a marketing plan for Peet's Coffee, a coffee retailer and roaster in the San Francisco Bay Area. The company's mission is to enable and inspire customers to enjoy Peet's coffee and tea. The plan includes objectives such as wide-scale advertisement and increased social media presence, aiming for a 10% increase in annual sales. A situational analysis covers competitive forces, a SWOT analysis, and segmentation, targeting, and positioning strategies. Peet's Coffee focuses on demographic and behavioral segmentation, targeting coffee connoisseurs and Millennials. The marketing mix incorporates the 4Ps (Price, Product, Place, Promotion) along with Positioning, Packaging, People, and Politics, to promote products in targeted markets. Desklib provides access to similar solved assignments and past papers for students.

Running head: PEET’S COFFEE 1
Peet’s Coffee
Institution
Student
Date

PEET’S COFFEE 2
Marketing Plan Outline
Company overview: Peet's Coffee is a coffee retailer and roaster located in a San Francisco Bay
Area. This company produces espresso beverages, brewed coffee, bottled cold brew and freshly
roasted beans. Peet’s Coffee products are traded in about 14,000 gross stores across the US.
Since its inception in 1966, Peet’s Coffee has been gradually growing its steadfast customer base
with strong brand consciousness.
Objectives or goals: This Corporation’s mission statement is to “To enable and inspire
customers to enjoy the daily pleasures of Peet’s coffee and tea by providing distinctive, superior
coffee and tea knowledge, and superior service to every customer, every day”. In order to
achieve its mission, Peet’s Coffee is seeking new ways of developing as a company and as
individuals. Thus, this firm is aiming at attaining a wide-scale advertisement to reach more
prospective customers. They also purpose to increase their social media presence further so that
they can get a huge traffic of the Millennials on various platforms such as Twitter, Facebook,
Instagram, and YouTube among others. Peet’s Coffee is also endeavoring to increase sales by
approximately 10% in every financial year

PEET’S COFFEE 3
Situational analysis:
Peet's Coffee Competitive Analysis
FORCE STRATEGIC SIGNIFICANCE
Supplier Power Low
Internal Rivalry High
Complements Medium
Substitutes High
Entry and Exit Medium
Buyer Power Low
Peet's Coffee SWOT
Strengths Threats
 High quality collaboration with
sources
 Community involvement
 High quality ingredients for their
products
 Efficient distribution networks
 An effective strategy that is being
well-managed
 Success in differentiating its products
 A broad product line (beverages, tea,
coffee, and pastries)
 skyrocketing prices for premium
coffee bean
 Unfavorable economic conditions
 Overall high commodity costs
 Highly competitive market
Weaknesses Opportunities
 Weak brand recognition compared to
other major coffee dealers
 Small marketing and financial
resources
 Limited food selection
 Geographic expansions
 Partnerships such as Candy,
Groceries, and Airline
 Expand coffee and tea selection
 Newer products launch such as
Godiva flavored coffee

PEET’S COFFEE 4
Segmentation, targeting, and position analysis: Demographic and behavioral segmentation are
the two main market segments Peet’s Coffee is looking more into. In the behavioral
segmentation, this company divides the total market into smaller homogenous groups on the
basis of their buying patterns, like brand loyalty, usage frequency, and coffee benefits needed. In
demographic segmentation Peet’s Coffee segments the market according to income, age, gender,
family size, and religion. This corporation targets people of all ages, nationality, and gender.
These include coffee connoisseurs and the Millennials (also known as Generation Y). Peet’s
market share in specialty coffee is constantly under pressure. In all its markets, Peet’s Coffee’s
market position is under pressure from many rivals such as small local “mom and pop” stores.
Most of its competitors are offering offer better experiences of premium coffee and more
comfortable environments thus deteriorating its position in the market.
Marketing mix: Peet’s Coffee uses various tactics to promote its products in all its targeted
markets. Their marketing mix just like of any other company is made up of the 4Ps namely Price,
Product, Place, and Promotion. However, the company is increasingly including other vital Ps in
their marketing mix such as Positioning, Packaging, People, and Politics