Starbuck Case Study

As Cataracts has entered into the market based as a specialty coffee shop, the company like many other, looks for ways to expand and create a competitive advantage over competitors. Restaurants have become increasingly Interested in competing for customers in the specialty coffee market to create more drive and attraction to the fast-food industry, which In turn has created a broader and more diversified competitor group for Cataracts.

To offset these new and upcoming decisions of restaurants and other coffee shops, Cataracts has ventured out to roared their customer reach by pairing up with other brands to enter Into different product markets. Cataracts Is known for Its co-branded products with Pepsi-Cola Company, the licensing agreement with Milliner to manufacture, produce, and market Cataracts Ice cream, but the newest to come In 2014 Is the co-branded yogurt product with Daemon.

The licensing agreement with Pepsi-Cola Company fits perfectly Into the realm of Cataracts’ main product offerings.

The co-branded products such as Production@ and Cataracts Doubles@ are marketed as a high quality convenience product that an be found at most grocery stores and gas stations. The products are coffee based for those who are on the go and cannot seek out the closest Cataracts to wait for their drink to be made, creating a new segment of loyal customers. In March of 2008, Milliner partnered with Cataracts to create a coffee themed line of ice cream inspired by the most popular coffee beverages sold at Cataracts locations.

Cataracts had already created their own ice cream in 1996 leading the coffee flavored ice cream category (Cataracts Newsroom), but with the newly announced licensing agreement, Milliner could help expand the company’s reach. This partnership benefited Cataracts by allowing a company already producing similar products to manufacture their product at a lower cost and in larger quantities to be sold in more stores across each region.

The company’s most recent idea of creating a healthy product image led to the licensing agreement with Daemon to penetrate the yogurt industry.

Starting In the spring of 2014, Cataracts locations will be serving yogurt parfaits with the Intention of selling in food retailers by 2015. The health and wellness focus for Cataracts has created a new product name, Evolution Fresh, which will be the name of the new Greek yogurt products. With an innovative brand name, Cataracts has created a whole new line of fresh and fit products from Juices to snack bars. The world has created health focused efforts and Cataracts saw a chance to expand Into a new market other than coffee sales.

The most relevant possible co-branded product would be to create flavored creamers.

This would go back to Cataracts’ mall roots and create a large amount of revenue. The creation of flavored creamer pods has created more coffee drinkers and sparked the interest of those who had been mediocre coffee drinkers to crave more f the sweet flavors further driving demand for coffee beans. There are multiple companies to choose from but Coffee Mate would be a top choice to license with due to their popularity and stability in the market. F their locations has created a specific loyal customer base with larger disposable incomes. With the extension of bottled beverages and ice cream products, Cataracts has been able to compete for the revenue from convenience shoppers and the retail shoppers. Yogurt will allow Cataracts to attract a new customer base that is focused on ready-to-eat healthy options that can be found when purchasing their coffee in- tore or at their local food retailer.

Cataracts growth into other products has allowed them to target several different customer bases through the aid of licensing agreements with companies that know how to manufacture the selected products best.