Though it is a coffee house and the coffee house culture is building up as an upcoming trend in Pakistan, a lot of advertising is unnecessary. It has used the marketing mix to create its own brand identity. In India, the per capita consumption of coffee is around 85 grams while it is six kg in US Developing nations are the big potential for the companies in this industry. Starbucks decided to follow a premium pricing strategy. For the successive three years it was been voted for the first choice of the London citizen in the field of their coffee tastes. There are several marketing strategies like product innovation, pricing approach, promotion planning etc. That is why, it called, and pricing of a product is the huge competitive issue in the competitive market. So, to determine the profit or loss of the company from the sale of the product is necessary to having a proper pricing methodology. 3.2.5 Legal and Ethical, 4 SWTO Analysis Its physical environment strategies involve providing excellent indoor seating, attractive dcor, and high-quality furniture. Most of the awareness will be through the word of mouth of people amongst the masses. Later 'Participants' was renamed as 'People' - the marketing mix covering marketers, customer service reps, recruitment, culture, training and remuneration. Based the placement consideration the product future will be assumed and it will help to get the better understanding in the concept of designing the efficient positioning and distribution channels. Costa Coffee is expanding very rapidly in western culture, having a tremendous acceptance in United Kingdom. One delivery or share the name of the product. One of the reasons for choosing the privileged and higher middle classes in the target market is the prices. It understands the value of its brand and therefore puts a lot of thought into how it prices its products. Redemption on the cards also extends to Costas popular Frescato range giving increased flexibility for customers which is paramount in todays market. Developing and emerging economies are growing fast due to globalization and the world economy is becoming interdependent. Listing for: Star Bucks Coffee. The benefit of the premium pricing is that it defines some exclusive coffee which attracts a lot of customer due to its premium pricing. They also keep the variation in their flavor also. Marketing Strategy of Costa Coffee. There are too many research and studies occurred behind the product development which is called the product development phase. With the growth and expansion of internet-based technologies, social media, and other such communication technologies, the work is better at making more informed choices. Similarly, with Costa Coffee app, customers can select their favorites and nearest store where the items are prepared and ready for them. But the Marketing Mix has been in the market for almost 70 . The 7Ps of marketing include: Product Price Promotion Place People Process Physical evidence Here's how the 7 Ps of marketing can be applied to everything in your marketing mix: 1. In the context of marketing mix, the pricing methodology is very necessary component determines the profit or loss of an organization by selling the product. The quality and tastes of the Costa product is world standard. Hot chocolate, Special drinks, tea, Cold drinks like cold coffee and ice blends, sandwiches and other supplementary foods are some of the variety of Costa coffee. Since their income is relatively higher than most coffee brewing companies, the time for implementation of their chosen knowledge management tools would take longer than usual, aside from being expensive. Costa Coffee has applied a range of promotional techniques to attract customers. 3.2.1 Demographic (Global) It is globally recognized and reputed by its tremendous tastes of foods especially in the form of Coffee. The company understands it very well and rewards employees accordingly. Moreover, CC has been constantly improving its operation-based and service-oriented technology. It is the first coffee shop in London that that process the whole coffee making from beginning to ending with help of machine procedure command. Costa Coffee (2022) Our history, available at: https://www.costa.co.uk/behind-the-beans/our-story/history (accessed 23 January 2022), Trip Advisor (2022) Review of Costa Coffee, available at: https://www.tripadvisor.co.uk/ShowUserReviews-g1634202-d6522529-r246340559-Costa_Coffee-Pocklington_East_Riding_of_Yorkshire_England.html (accessed 22 January 2022), Sky News (2021) Costa Coffee dishes out 5% pay rise to 14,500 staff in return for pandemic hard work, available at:https://news.sky.com/story/costa-coffee-dishes-out-5-pay-rise-to-14-500-staff-in-return-for-pandemic-hard-work-12403442 (accessed 23 January 2022). It has transformed to open their international store in Dubai since 1999. Fahim Shah has been working in the UK as a visiting lecturer in Business and Tourism for the last 10 years. Take a look at HubSpot as an example, which was founded in 2006; Hubspot now boasts over 86,000 total customers in more than 120 countries. Another version of Costa coffee that is vending with machine under the brand Costa express by the demand of product. The Marketing Campaign Planning toolkit contains: Start your Digital Marketing Plan today with our Free membership. This will make coffee become more expensive and less customers will be able to afford it. This is also very convenient for customers who have limited time. That means price is the amount that has to be paid by the customer to buy the product. What is MBA Skool . It is always recommended to expand the current product mix by the diversification of the product diversification and increasing the product depth. The difference is that unlike other milky coffees such as lattes there is only a small amount of heated but not frothed milk blended into three small shots of espresso to give a velvety, smooth texture. 3.2.3 Economic (global) However it is present only in the top urban cities which adds to the positioning of Costa coffee. Costa Coffee operates 1069 stores in UK market as of April 2010, leaded them to become a largest British coffee chain in terms of stores. Costa coffee has the monopoly in Pakistan, being the only International brand in the market, there is no competition for Costa Coffee. The last part of discussion in the marketing mix of Costa Coffee (7Ps of Costa Coffee) is the physical environment. Its distribution strategy includes opening stores in heavily populated areas with good transport links. Economic downturns can lead to reduced consumer spending on non-essential items such as premium coffee beverages. Costa Coffee has been able to remain one of UKs leading coffee brewing companies for more than a century now primarily because of the execution of the companys branding and positioning strategies to perfection. The club of loyalty program allows getting discount on foods. It also offers valuable insights concerning the opportunities that the company should consider and the threats that it should keep close eyes on. To achieve this, the company rolled out a loyalty scheme in all its branches in 2006, offering a 2 incentive to customers who signed up to the scheme online. Emerging middle classes in China and India hold greater promise for CCs success because this class is out to taste new flavors and feel of the other cultures (McKinsey, 2012). American Marketing Association. There is also a trend to have the proportional pricing as per the quantity ordered. Costas new marketing strategy has been implemented to demonstrate to the public that Costa is the only brand with real coffee authority; they source, store, blend, roast, grind and extract all their own coffee. So, at last it could be said that marketing basically help to design the whole marketing strategy and marketing concept. 3 Marketing Audit However, it has expanded into digital ordering platforms by partnering with Deliveroo, Just Eat, and Uber Eats. Costa Coffees biggest competitors in the UK are Starbucks, and Caffe Nero. In Donnelly, J. H. and George, W. R. (Eds). It is about finding the right combination that will mostly effectively serve the customers needs and wants at the same time achieve the profitability objective. 3.1.1 Mark Size and its characteristics Customer can know about a product from the aspect of advertising. Nowadays Costa Coffee is a part of the Whitbread, family of brands. It is clear that CC is abreast with recent trends in technological world. However, I cannot find the date you wrote MARKETING MIX OF CASTO COFFEE. Costa Coffee can form strategic business alliances with other companies in the food and drink industry to increase the variety of items available in their shops. Therefore, if the demand in the home market declines, it will be a big problem for the company. Additional loyalty cards will continue to be available at all stores for customers to pick up when they purchase their next cup of coffee. Would you mind telling me the date? Coca-Cola announced on Friday that it would buy British coffee-shop chain Costa Coffee for $5.1 billion. So 'Marketing Mix' is also referred and known as the Four P's, which are marketing mix elements i.e., product (P-1), price (P-2), place of distribution (P-3), and promotion (P-4). The services marketing mix is also called the 7Ps [] May 2, 2016. . International franchising strategy has helped CC to reduce its distribution channel. Some of which sell cheaper products which seem affordable to more customers. Processes: More sales staff are now involved in conversion. Costa coffee is owned by Whitbread and is more in competition with barrista then cafe coffee day in India. Companies can also use the 7Ps model to set objectives, conduct a SWOT analysis and undertake competitive analysis. Similarly, loss of sales due to coffee substitute products being introduced into the market is also a concern. Place is an important component in the marketing mix of Costa Coffee (7Ps of Costa Coffee). People normally refer to them as the Service Marketing Mix. 6. They have consideration in their kind for upper middle class and rich people according to which the outlets where the place of Costa Coffee are established. There is also another dimension to set the pricing to the proportional pricing as per the quantity ordered. The Costa Coffee brand already has a premium status in all its markets. 2. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! "The interior of the coffee shop is really cute. 3.1.2 Trends/Positioning to Their Promotional marketing mix strategy is the word of mouth that is done publicity. Costa Coffee Marketing Mix. He is a lecturer in Management and Marketing. Copyright 2017 2025. The urban middle class in Eastern Europe, UK, China, and India is more likely to benefit from this boom of technology and social media and would become a vast customer base for the CCs new stores, adding more consumers to the present base. It has less advertise in the electronic media, print media etc. product which is value or benefit provide to 6.5 People The product is not produced within a short time. The above analysis reveals that Costa Coffee has several strengths, such as its strong brand identity, commitment to product quality, and diversified product portfolio. By leveraging its strengths and opportunities, addressing its weaknesses, and mitigating threats, Costa Coffee can continue to grow and maintain its position as a leading coffeehouse chain in the UK and beyond. It is a subsidiary of the Coca-Cola Company. Marketing Mix of Costa Coffee is the research topic for emphasizing on the marketing strategies developed by the firm. 5.2 Market Share Objectives, 6 Marketing Mix The 4Ps are price, place, product and promotion. They plan to deliver this key message through world class branding and marketing. Moreover, except delighted Coffee it has Hot Chocolates, Specialty Drinks, Teas and Infusions, Cold Drinks, Foods etc. The market observation that is found ultimately for Costa Coffee is that the most selling product of Costa is Coffee. This assignment report outline strategic and marketing approach to be undertaken for the current year by the Costa Coffee, a chain- part of a UK- based Multinational conglomerate Whitbread Family. Costa Coffee is a British coffeehouse chain, headquartered in Dunstable, England. [Online] Available at: https://www.marketing91.com/marketing-mix-costa-coffee/. The food lovers are the promoter of their company or the food item and as result they are considered as the key promotional partner to marking of the product. Costa Coffee (CC) is a fast growing global coffee venture. But Costa coffee also has many other varieties of products which are loved by people. Threats faced by Costa Coffee include intense competition, high coffee prices, and economic uncertainties. However, it is worth noting that reviews online have shown customers mixed feelings about its products and services with many being happy while others branding some its products and services as poor (Trip Advisor, 2022). Above all the circumstances the place is also required to attract the customer. This is a detailed analysis of the marketing mix of Starbucks. Job in San Francisco - San Francisco County - CA California - USA , 94199. Apart from this the professional sales with relation to media will also increase since there is a very strong showbiz industry in Lahore. Costa Coffee has specific steps that employees must take when handling orders. There was a survey on Costa Coffee where it is found that Costa Coffee have the intention to make the choice of places and country by the choice of the food lovers where they actually want to take seat. It is well-known for its handcrafted coffee beverages, delicious food offerings, and warm atmosphere, all of which have contributed to its success. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.io. There is a survey of Costa Coffee to the customer where the customer shares their views regarding the Costa Coffee and shares their personal experience for Costa Coffee. The 4 Ps represented an early focus on product marketing, when the role of customer service in helping brand development wasn't so well known. In London it has 1200 outlets. These business strategies, based on 7-Eleven marketing mix, help the brand succeed in the market. From the global product list it is found about Costa Coffee, that it has Mocha Coffee which is delicious, Latte Coffee which is delicious, Americano, Flat White, Expresses and Cappuccino. Opportunities for growth include international expansion, product innovation, and strategic alliance. 2. Advertising of the product describes the product features. On the legal front, CC has proved to be consistent with the pertinent laws and policies with regards to its raw materials and products. The sobriety of Costa invites consumers to spend a pleasant time with their company without the tacky flash and glitter. There is a general talking regarding the place of the product. With a vivid understanding of where power lies, Costa Coffee is advantage the current situation of strength, improve a situation of weakness, and avoid taking wrong steps. About Costa Coffee. This lack of marketing investment can hinder its ability to create brand awareness and attract new customers, especially in international markets where the brand is less established. In the past, Costa Coffee mainly focused on brick-and-mortar stores. The Essay Writing ExpertsUK Essay Experts. Besides these they use the bill board in different occasions to promote their product. 3.2 The Macro Environment Similarly, Costa Coffee does not have a huge number of stores in total like some of its competitors. 9 key differences between strategy vs tactics What is the difference between strategy vs tactics? is one of the most common questions that crops up when Im running training workshops or discussing creating marketing plans with businesses. It has a sparse presence in India but has an amazing and mature franchise in UK. The Coca-Cola Company is emerging from the pandemic poised for growth with a leaner lineup of high-potential brands and a more disciplined, consumer-centric approach to marketing and innovation, Chairman and CEO James Quincey said Feb . Thus, global figures of the industry are important to conduct the marketing audit. There is also variation in the tastes. The emphasis is on luxury and comfort- with style. Costa Coffee uses regular adverting on television and social media. They could not supply the entire market so in 1978 they decided opened the first Costa espresso bar in Vauxhall Bridge Road in London. Miscela Blend: Costa has a unique blend we call the Mocha Italia 2. Listed on 2023-04-29. After the emergence of the service economy, the 4Ps were promoted to 7Ps of Marketing Mix. Its stores have a trendy atmosphere in which customers like to spend some time. The Marketing Mix 4Ps and 7Ps Explained. Its corporate objectives focus on prime quality and taste of all the coffee brands it offers keeping an environment friendly approach where the company is aware of its social responsibility. The ambiance provided is trendy as well as soothing. The marketing people should have depth knowledge in the selection of place and should have the deep understanding for target market as well as target customer as it may become easy to attract the customer. Increasing competition from existing coffee shops is a challenge. All rights reserved LCHW. The rise in price of coffee beans and dairy products is also a threat. Place/Access: Online! Karachi, due to its metropolitan way of life and culture and ideal market potential was chosen to be the launch pad for initiation into the Pakistani market. Likewise, broadening the target market to include slightly cheaper coffees of high quality is worth considering. Core service. As a premium brand, its prices are generally expensive. 1. Costa coffee is also focused on building customer loyalty. Anastasia Belyh. The global renowned brand is Costa Coffee. It is practically the main profit provider of the company in the broad markets of UK. The market development strategy implemented by Costa Coffee (Refer graphic N1) started in 2002 when they opened new geographical market in Dubai and Saudi Arabia, creating new market segment, adopting different price police to attract different customers. 6.3 Place and Positioning So, the main area of focus point of Costa will be on its product of coffee. The target consumer in all the countries for CC is not a specific segment: It focuses to bring to its cafes all the age groups which is a promising strategy (Marketing News, 2012). The marketing mix is a familiar marketing strategy tool, which as you will probably know, was traditionally limited to the core 4Ps of Product, Price, Place and Promotion. Price. White Sparrow Coffee. The 7Ps of the marketing mix can act as a well-structured checklist for marketers who aim to create an effective strategy that achieves their goals and evolves the business to the fullest extent. The findings above notify that Costa has very strong market intensification potential. This success product development strategy implemented by Costa Coffee has become it start performer this year, with sales up 35% compare to 2008. Its prices are higher than many other coffee shops in the market. In todays competitive market, choice is in abundance and Costa wants to differentiate itself from other coffee shop chains as it believes its product to be of a higher quality. Costa Coffee is a British coffeehouse chain, headquartered in Dunstable, England. Stakeholders of Starbucks (Starbucks stakeholder analysis), SWOT analysis of China (Chinese National SWOT), https://www.costa.co.uk/behind-the-beans/our-story/history, https://www.tripadvisor.co.uk/ShowUserReviews-g1634202-d6522529-r246340559-Costa_Coffee-Pocklington_East_Riding_of_Yorkshire_England.html, https://news.sky.com/story/costa-coffee-dishes-out-5-pay-rise-to-14-500-staff-in-return-for-pandemic-hard-work-12403442. As per the popularity customer have observed about Costa Coffee, it has different exclusive discount offer for the product of Mocha which is delicious, Latte which is delicious, Americano which is delicious, Flat White which is delicious, Expresses which is delicious and Cappuccino which is delicious. Comment * document.getElementById("comment").setAttribute( "id", "ac4d873503a333f2d729e0e41fcdb1db" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved, Liked this post? It has also one of the widest connections among other UK coffee brewers made possible through a network of distributors and breweries. It is well-known for the quality of its products. In the context of the marketing mix mechanism Product is the most vital part. It covers communication between the producer and customer. Marketing Strategy of 7-Eleven analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). From the beginning a number of TV channels have already started airing their programs art Costa. Costa Coffee is a major competitor of Starbucks. The biggest strength of CC is its being one of the most innovative brands in the UKs coffee market. Starbucks is the biggest coffee house chain in the worldwide in terms of number of stores. Its no surprise .. Now come to the Costa Coffee product development. Lastly, Costa Coffee is susceptible to fluctuations in the global economy and political climate. Samsung marketing mix louis vuitton marketing mix 7ps (Samsung 7Ps of marketing) comprises elements of the marketing mix that consists of product, place, price, promotion, process, people and physical evidence. It has had a companion recently in conjunction with Channel 4 UK which saw a number of Channel 4s familiar hosts and actors having in-person conversations in its stores. Free resources to assist you with your university studies! This is a detailed assessment of the marketing mix of Costa Coffee (7Ps of Costa Coffee). Moreover it is found that the premium pricing is carrying the brand value and high quality of the product. Updated Dec 6, 2022 . Costa Coffee is a British coffeehouse chain. What Caf coffee day is to India, Costa coffee is to UK. Bhasin, H., 2017. For selecting the placement for distribution there are different issues involved on which Costa Coffee work importantly to attract the customer those exist and potential customer. This is the job responsibility of the marketing people as the marketer to create as well as design the right and correct marketing mix in response to the product mix. Manna: Hand: the skill of the Barista influences the "Perfect Cup" Product in the marketing mix of Costa coffee - The main product of the firm is Coffee. As the branded coffee market is expected to substantially grow in the future, more and more competitors are expected with the market trends getting more sophisticated. Place is required for the display of the product. After expansion Costa will be able to establish a firm and strong foothold in all the major markets of Pakistan. Hope the article SWOT analysis of Costa Coffee has been useful.
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