What is Cataracts’ retail strategy? What Is Its target market and how does It try to develop an advantage over Its competition? Cataracts retail strategy Is having royal customer or another word repeated customer to their coffee shops. Also they don’t want to make only the best coffee they want to educate their customers about their products and make their experience unique all the time by their baristas (Italian for bartenders). Making relaxing atmosphere for their busy life customers is another strategy for Cataracts.
The store offers Juices and cocoa for children, creamy blended drinks for those who don’t articulacy like coffee, and a number of different types of brewed coffee. Cataracts continues to refine and target their product offerings to the changing tastes of consumers. The stores now sell specialty breakfast foods such as scones and muffins as well as a variety of beverages and coffee. The company made some important partnerships with some successful bookstores around the nation. And last but not least they license the brand name for other food products such as ice cream.
Those successful movements helped company with their brand awareness expansion. 2. Describe Cataracts’ retail mix: location, merchandise assortment, pricing, advertising and promotion, store design and visual merchandising, customer service, and personal selling. How does its retail mix support its strategy? Location is a real estate/marketing strategy where every retail location also serves as a billboard for a business. Everything about a store’s physical exterior, from the awning to the logo on the side of the building to the company name in lights, is, in essence, a billboard communicating the business to customers.
Cataracts location strategy is called Main & Main and the real estate department maximizes every opportunity to place Cataracts locations in the most highly visible and highly reaffirmed street corners Just like advertisers do when selecting billboard sites. Location also extends to triggering Impulse purchases from customers. Cataracts triggers Impulse purchases from customers by locating stores near dry cleaners and video rental stores. Cataracts takes full advantage of the morning commute customer traffic generated from people dropping off clothes at the dry cleaners on their way to work.
And, Cataracts positions itself to take advantage of attracting late afternoon customers picking up movies from video rental stores on their way home from work. Cataracts merchandise consisted mainly of coffee mugs, endless tumblers, coffee makers, and home espresso machines along with all the accessories, and of course? whole bean coffee. Most stores had multiple merchandise bays and in-aisle display racks to sell all this coffee-related merchandise. Sales of coffee merchandise were strong.
At some locations, merchandise sales comprised nearly 20-percent of stores total sales. Cataracts Is well known all over the world and they known with their quality customer service because of those facts their pricing Is premium compare to other competitors in same market. Also their brand awareness is so high they don’t spend Stores are custom-designed also located in office buildings, downtown and suburban retail centers, airport terminals, university campus areas, or busy neighborhood shopping areas convenient to pedestrian foot traffic.
Only a select few were in suburban malls. While similar materials and furnishings were used to keep the look consistent and expenses reasonable, no two stores ended up being exactly alike. Managers at Cataracts put tremendous attention into hiring good “people people. ” People who enjoy interacting with and pleasing others. Their hiring and raining process is designed systematically to serve best to their customers. 3. What factors in the environment provided the opportunity for Cataracts to develop a new, successful retail chain?
What demand and supply conditions prevailed in the U. S. Coffee market when Howard Schultz purchased Cataracts in 1987? What insight did Schultz have that other players in the coffee market did not? One of the important factors to develop successful retail chain for Cataracts is Howard Schultz. His vision and realization played big factor for company itself. He realizes the lack of enjoying a cup of coffee and made a big move or big risk to be the suggest in the market.
This is making relaxing environment and enjoy that hot coffee or cold drink with conversation in cozy place which others didn’t offer this. 4. What were the principal drivers behind Cataracts’ success in the marketplace? What does the Cataracts brand mean to consumers? How have the growth opportunities pursued that Struck has pursued affected the value of its brand name? Their employees are treated like partners, (which J Penny did the same) and their customers like stars. This made Cataracts very strong driven and successful in the marketplace.