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Peet’s Coffee and Tea Proposal

Industrial background

Peet’s Coffee and Tea is a restaurant with international operations across the world. With its headquarters located in California, the business has a chain of coffee houses located at various parts of the world. The restaurant business deals in a range of products consisting of diversified coffee and tea beverages.

Problem statement

Following the recent business evaluation, there has been a need to establish strategies that will propel the company towards success. In this regard, the following strategies will be included in the company’s marketing proposal.

New marketing strategies

According to Ataman, Harald and Carl, Peet’s Coffee and Tea restaurant requires new marketing strategies that are effective in a food and beverage industry (866). The use of a suite of services and loyalty programs among others is deemed an effective marketing strategy.

Suites of services

Customer-friendly suite of services includes installation of free internet services inside the restaurant. When customers access free Wi-Fi internet connections, they would be happy to spend time and enjoy coffee and tea for hours. This means that free internet connection requires installation of electrical cables near the coffee tables for laptop connectivity.

Another form of a suite of services includes book live entertainment, where customers engage in poetry reading and other forms of readings that complement relaxation. People who prefer taking coffee and tea do so for purposes of relaxation.

Suites of services offer an ambient environment that promotes relaxation mood in a coffee and tea restaurant. Moreover, the suite of services may be viewed by customers as value additional services. This strategy will promote sales once regular customers invite their friends to see the difference (Ataman, Harald and Carl 869).

Loyalty programs

Loyalty programs are considered as incentive programs for loyal customers (Ataman, Harald and Carl 871). In this respect, Peet’s Coffee and Tea restaurant will use punch cards redeemable for free coffee drinks and snacks after every 10th cup of coffee at any of the business restaurants. In this regard, the loyalty program is deemed to encourage more loyal customers to visit the restaurants and enjoy free drinks.

This program increases sales volume and promotes business-customer relationship (873). Another form of loyal program is to have punch cards that track a client’s amount of purchases done at any of the business restaurants. This would be used to determine discounts given to such loyal clients, as well as the value of freebies given to same customers.

On-premises advertising

Advertising is integral for any restaurant business, especially a coffee and tea business. The current Peet’s Coffee and Tea restaurant is to distinguish itself from other competitors through on-premise advertising. This means that the business needs to have creativity in having large windows, glass doors, exotic paintings and interior designs.

The set-up of the sitting area is critical on how people view the business premises compared to other competitors with similar products and services. The visibility of the restaurant premises from outside is important. This means that the organization management has to make sure all other restaurant’s outlets are located at highly-visible locations.

Promotional advertising

In order to boost sales, it is important to incorporate sales promotion initiatives after every 4 months. A better way to ensure promotional advertising takes effect is placing coupons at local daily newspapers (876).

To capture the attention of internet users, the same can also be replicated on social media sites like Facebook and Twitter. Promotional advertising is critical in ensuring that the restaurants experience new visits from potential customers.

Sales programs

Peet’s coffee and Tea restaurant requires a sales program that seeks to promote the business from various perspectives. An example of sales programs would be special events like music events. Inviting artists in the music industry would be crucial in holding live performances at restaurant entertainment halls. This will promote the popularity of artists, as well as that of the restaurant business.

Pricing strategy

With a need to have repeat business as an attractive profit margin, establishing effective pricing strategies is imminent. Peet’s Coffee and Tea restaurant will use penetration pricing, promotional pricing, competition pricing and premium pricing strategies (880).

Penetration pricing strategy

Peet’s Coffee and Tea restaurants products and services are known as high quality products, but will be offered at a lower price while entering new markets. This strategy will aid the restaurant business in countering harsh competition from other industrial players.

Promotional pricing

This pricing strategy is a long-term initiative used to attract potential customers. In this regard, the restaurant business will sell some of its products at a lower price without getting significant profits. This strategy is deemed to attract customers to access and explore other products and service provide by the business. Promotional pricing entails the use of discounts like price and product discounting.

Competition pricing

This strategy is focused to counter competitor’s prices. The business will identify prices of similar products and services from other competitors and provide a lower price on the same. This strategy can deliver narrow profits, but in long-term can be effective in neutralizing competition.

Premium pricing

Coffee and tea business are common among middle income earners and the wealthy because of the prestige and luxurious services from the businesses. In this regard, Peet’s Coffee and Tea restaurant business will target high-end consumers by providing high-quality products and services at premium prices. This strategy delivers high profit as it targets high spender with premium prices.

Marketing programs

Peet’s Coffee and Tea will establish a marketing program with an annual budget of $500,000. The marketing program will be responsible for the establishment and implementation of the mentioned strategies.

Strategic alliance

Peet’s Coffee and Tea restaurant business requires more than marketing strategies to succeed in a highly competitive industry. The business requires strategic alliances such as human resource, reliable suppliers, financial institutions and distributors. In this regard, the business requires having strategic pool of personnel as human resource.

The department in charge of human resource management will have policies on hiring qualified personnel, general management, training and development of the same (877). In addition, the business will have strategy alliance with suppliers of essential supplies like coffee beans and food stuffs. A policy on supplier selection is critical for a strong-supplier relationship.

Peet’s Coffee and Tea business operates in perishable products and having reliable suppliers is necessary for business success. The business capacity to distribute determines the decision on the mode of distribution of its products and services to its outlets. In this regard, the company can outsource distributorship of its products from distribution vendors if does not have the capacity to do so.

Financial strategic alliances with credible creditors are essential for a business survival. In this respect, the business requires partnership for financial stability with local banking institutions. The financial institutions are helpful in terms of credit control measures and financing new ventures. Auditing financial portioning and financial consultations of the business requires an independent auditor like bank institutions.

Works Cited

Ataman, M. Berk, Harald J. Van Heerde, and Carl F. Mela. “The long-term effect of marketing strategy on brand sales.” Journal of Marketing Research 47.5 (2010): 866-882. Print.

This proposal on Peet’s Coffee and Tea was written and submitted by your fellow student. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly.

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IvyPanda. (2019, April 19). Peet’s Coffee and Tea. Retrieved from https://ivypanda.com/essays/peets-coffee-and-tea-proposal/

Work Cited

"Peet’s Coffee and Tea." IvyPanda, 19 Apr. 2019, ivypanda.com/essays/peets-coffee-and-tea-proposal/.

1. IvyPanda. "Peet’s Coffee and Tea." April 19, 2019. https://ivypanda.com/essays/peets-coffee-and-tea-proposal/.


IvyPanda. "Peet’s Coffee and Tea." April 19, 2019. https://ivypanda.com/essays/peets-coffee-and-tea-proposal/.


IvyPanda. 2019. "Peet’s Coffee and Tea." April 19, 2019. https://ivypanda.com/essays/peets-coffee-and-tea-proposal/.


IvyPanda. (2019) 'Peet’s Coffee and Tea'. 19 April.

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