This is to recommend that Struck to increasing the power of expand the international markets especially the countries that Struck has not been launched yet in order to gain more global market share thus generate more sales. Struck also need to reduce the power of expand domestic markets since the market in the US is approaching saturation and the marketing- warming expansion techniques has caused cannibalize existing store sales.
Based on my analyzes on the case Planet Struck (A), Struck Coffee remains a leader in the coffee business in the world for a long time because the perceived premium product’s cachet that they are offering customer something so far superior than customers’ expectations and their ubiquitous positioning strategy that providing ready access to customer foot traffic. These are the biggest strengths of Struck. Based on its existing successful del, Struck has indicated continuing increased gross operating income and operating income. See Appendix#l ) This huge success offers Struck more resources to expand its international market such as capital, existing business model, successful previous experiences and expert management team. At present, it is the great time for Struck to expand its international market, since the domestic market is approaching saturation. Even the marketing-swarming expansion techniques prevented competitor entry to the rake and helped Struck built strong brand awareness and recognition, it leads to downward trend in sales per store.
As an illustration, between 1 995 and 1 998, Struck had averaged $0. 69 million sales per store per year but until 2002, the sales has been decreased to $0. 559 million per store. This data reflected the domestic market has approached the saturation. However there is still an opportunity to increasing the globally market share, since in year 2002, there are total of 4574 domestic stores but the total number of international stores are only 131 2, which is only quarter of the number of domestic stores. See Appendix #4) Therefore, expanding international markets would lead to increasing the globally market share thus generate more sales and also will help the company to achieving its objective which is establish Struck as the most recognized and respected brand in the world. Struck has a pretty strong brand image to many of its customers as a “third place” where is a place between work and home that people can escape, reflect, read, chat and listen.
This niche positioning strategy has differentiated Struck from its competitors and this strategy has also become to Struck strongest competitive advantage that provided customers an atmosphere of both warmth and comfort. In conclusion, the main plan of action right now should be to focus on expanding international market instead of domestic markets. Thus the global market share will be increased if the marketing strategy is executed correctly and cooperated with right partner.