The first and foremost strategy to deal with the threat of substitute products from competitors is to develop cost leadership strategy and sell products at reasonable rate. While Struck is known for its premium services and environment in stores but when it comes to a product like this, the price would attract the customers.
Therefore, the company must develop cost leadership strategy to gain competitive edge in the market. It can also adopt product differentiation strategy whereby it introduces its proposed product in different packaging sizes: small, medium, large. Besides, in order to deal with threats of self-cannibalism, it can print the image of the inside of its stores on the labels of coffee powder whereby it encourages people to pay a visit to the company’s store to enjoy “Struck Experience”. It can also introduce “Struck Facts” on such labels.
This will change self-cannibalism to self- rumination and the customer would get attracted towards the product not only to learn another new fact each time it buys the product but also to experience the atmosphere shown on the label. 7 CONCLUSION This paper took into account a coffee brewing and selling company, Struck. It proposed a new product with regards to the company and suggested to sell it not only in-stores but through other high street departmental stores. It highlighted the stakeholders of the organization and the way such product and its benefits can be communicated to them.