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Case Study: Pura Vida Coffee

Challenge

Rapidly growing coffee company under competition from local, regional, and national roasters.

  • Unique commitment to sustainable coffees and origin farmers creates significant cost disadvantage.
  • Distributors under intense exclusivity pressure.
  • Resources lacking to pursue an aggressive retail location strategy.

Solution

Strategy to build and protect sustainable competitive advantage; turn small size and underdog position from liabilities into competitive assets.

  • Segmentation study that uncovered a lucrative audience – college and university food service customers – underserved by industry giants.
  • Product strategy built on 100% commitment to fairtrade, organic, and sustainable coffee.
  • Value proposition marrying rational and emotional benefits key to establishing strong target loyalty.
  • Brand architecture to support the “leader in sustainable coffee” position.
  • Partnership strategies with leading food management companies insulating small business from exclusivity pressures.

Results

Company growth in excess of 300% since strategic redirection.

  • 2007 sales in excess of 5 million.
  • Secured strategic partnership with world’s largest food management company as the preferred provider of “sustainable and ethical” coffee to 10,000 commercial accounts nationwide.