Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. 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! These are the primary ingredients of a marketing strategy, and as a means of translating marketing planning into practice. 6.1 Product Because with the context of product the service is related this can be termed as the intangible context. Costa Coffee sells foods which have been specially made for itself, in addition to different types of hot and cold coffees and drinks. Listing for: FELLOW. 3.2.2 Political Product Strategy of Starbucks Costa Coffee takes a very calculated approach to pricing, as it does with all things. However the presence in India is very much limited. There following are major placement or distribution strategies: Now come to the Costa Coffee placement and distribution strategy. Advertising of the product describes the product features. Product in the marketing mix of Costa coffee - The main product of the firm is Coffee. 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. 6.5 People Macinatura: Grind: Every cup of Costa is made from freshly ground beans" 3. You may also like reading the following: Marketing mix of Costa Coffee (7Ps of Costa Coffee), McDonalds SWOT SWOT analysis of McDonalds, BBC (2023) Costa cappuccino has five times more caffeine than Starbucks, available at: https://www.bbc.co.uk/news/business-64472214 (accessed 13 April 2023), Costa (2023) Behind the Beans, available at www.costa.co.uk/behind-the-beans/our-story/history (accessed 12 April 2023), Hunter, D. (2022) Our coffees Costa too much.available at: https://www.walesonline.co.uk/news/uk-news/coffees-costa-much-say-angry-24142226 (accessed 11 April 2023). You can follow her update on Twitter https://twitter.com/annmariehanlon, Turbocharge your results with this toolkit containing 7 resources. Some analysts argue that Costa offers low-priced options for those who cannot afford high-end coffee as well as more expensive options which cater to people with more disposable income. Today, the marketing mix isn't limited to just four pillars. For instance, it announced in 2021 that it would increase pay by 5% for the 14,500 staff working at its stores across the UK (Sky News, 2021). The business of Costa Coffee is operating more than 2121 outlets globally. We can observe that Costa has exceptional sales all through its first year after entering the Pakistani market. Costa aims to resonate with its target market through its branding and messaging strategy. The product is not produced within a short time. The emphasis is on luxury and comfort- with style. Moreover, the utilization of the appropriate knowledge management tools is necessary for their products to reach out to people even in different cultures. These business strategies, based on Starbucks marketing mix, help the brand succeed in the market. However, weaknesses such as its dependence on the UK market, limited marketing efforts, and pricing issues need to be addressed. Costa coffee is the largest coffee brand and the one growing fastest. p. 47- 52. 4.1 Strengths of CC. The coffee sold at Costa Coffee is of very high quality which has helped it gain many loyal customers, some of whom visit it daily. Marketing mix for coffee shops? They will value Costas commitment to their satisfaction and realize that luxury comes at a cost. In the context product mix it is not necessary that the product will be only the tangible product but the marketing mix concept also allowed the product could be the intangible also. Price. Comment * document.getElementById("comment").setAttribute( "id", "ac4d873503a333f2d729e0e41fcdb1db" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved, Liked this post? Place/Distribution strategies of Costa Coffee. This is a detailed assessment of the marketing mix of Costa Coffee (7Ps of Costa Coffee). The most attractive feature of CC that gives it an edge over its competitors such as Starbuck is its being high-quality brand while at the same time not as expensive as Starbuck. A company has the position or place to distribute the product it means he has the opportunity to display the product, to sell the product, to outline the product, to promote the product, and to distribute the product. Later 'Participants' was renamed as 'People' - the marketing mix covering marketers, customer service reps, recruitment, culture, training and remuneration. The original marketing mix concept was created during a time when the majority of businesses sold physical products and it was updated in the 1980s as more service-oriented businesses started to emerge. Fahim Shah has been working in the UK as a visiting lecturer in Business and Tourism for the last 10 years. The Costa Coffee brand already has a premium status in all its markets. Their first coffee shop was in Vauxhall Bridge Road, London. Marketing Mix Strategy is the combination of 4P. So, at last it could be said that marketing basically help to design the whole marketing strategy and marketing concept. High profile shopping malls, good looking theatre places, busy corporate areas and the place like is chosen to the placement and distribution consideration. The rise in price of coffee beans and dairy products is also a threat. Bhasin, H., 2017. Costa Coffee is a British coffeehouse chain. Marketing Mix of Costa Coffee is the research topic for emphasizing on the marketing strategies developed by the firm. It originally started as 4 Ps, but as the world, and the complexities of marketing grew; 3 more were added to formulate an effective marketing strategy. Above all the circumstances the place is also required to attract the customer. In the past, Costa Coffee mainly focused on brick-and-mortar stores. Costa Coffee is a British coffeehouse chain. Full Time position. Job specializations: Management. Product. Costa Coffee started the challenge activity of built its own social responsibility in this new market based on obtains recognition and gain market share. It offers detailed insights into the strengths and the weaknesses of Costa Coffee. Place is required for the outlay of the product. After expansion Costa will be able to establish a firm and strong foothold in all the major markets of Pakistan. While this will increase its business, it may also impact on its profit margins once those delivery companies take away their fees. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. PPC Social media advertising, e.g. That means price is the amount that has to be paid by the customer to buy the product. Besides these they use the bill board in different occasions to promote their product. Costa Coffee is a major competitor of Starbucks. It has almost 3300 outlets from the selling and distribution is done to serve the customer. Skool, 2017. But this is offset by the outstanding quality and discerning tastes at Costa. Since the success of this strategy the company from 2002 to 2005 opened 79 stores in international market and until February 2010 the company has 528 stores in 24 countries such as Oman, Egypt, Qatar, Bahrain, Kuwait, UAE, Jordan, Lebanon, Syria, Europe, Russia, Pakistan, Beijing, Shanghai and the other two countries mention before. Government policy changes could also interrupt the supply chains. There is also variation in the tastes. 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. Pricing methodology in the marketing mix context is called touch area which can influence the whole company if there is any error occurred in the pricing strategy by observing as well as setting the target market where the customer will be willing to pay a high price if the product has the value to the customer. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Comprised of Marketing Hub, Sales Hub, Service Hub, CMS Hub, and a powerful free CRM, HubSpot adds value for customers in every aspect of the 7Ps. International franchising strategy has helped CC to reduce its distribution channel. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. They have expanded their market in the different zone of Asia, Africa. The present example is its Costa Express machines which have won the hearts of the consumers as the self-serve coffee machines go touch-screen based. Moreover, it has always running dimension for its ice coffee like Frsotino by customer choice, Coffee Cream customer choice, Lemonade customer choice, and Mocha Cream customer choice. It is always recommended to expand the current product mix by the diversification of the product diversification and increasing the product depth. To be competitive in the huge market competition Costa Coffee has the price the variation of dimension in the price offering and it is successfully influence the customer. Furthermore, Costas recent price increases have made many consumers furious (Hunter, 2022). It is always not necessary the lower priced product will attract the customer but the higher priced product may attract the product. Under the Marketing Mix are the 7Ps of marketing, which are the product, place, price, promotion, people, packaging, and process. Although setbacks in other countries do have an effect on the overall expansion, branded coffee business is destined to increase in the coming days. Customer has also given the title of the food in their choice as Frsotino by customer choice, Coffee Cream, by customer choice Lemonade by customer choice, and Mocha Cream by customer choice. The ambiance provided is trendy as well as soothing. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. [Online] Available at: https://www.marketing91.com/marketing-mix-costa-coffee/. To conduct a detailed marketing audit of CC, it is imperative to understand that CC is a growing globally. There is a variation of price in the context of the product dimension like if anybody wants to add some additional item included in the coffee like extra chocolate, cream etc. 11 min. when marketing 4P's strategy is enough the marketing mix is used when assessing the tools that can be used to influence buyer decisions (Kotler et al. The rationale following this is the unique taste and the highly reputed image of Costa in the European markets. After the emergence of the service economy, the 4Ps were promoted to 7Ps of Marketing Mix. Therefore, the price is relatively high in comparison to smaller coffee shops. 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. Costas commitment to being the dominant player amongst the regions coffee shops was reinforced. It is found from the survey result where customer is telling it has a lot of variation in the combination of element mixtures or the different elements mixtures increase the tastes of Coffee and thats why it is implied that the Coffee has lot variation. 4.2 Weaknesses It has a state-of-the-art roastery in United Kingdom. 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. Not found what you are looking for? Costa Coffee Marketing Strategy & Mix covers its product, pricing, advertising & distribution strategies. They plan to deliver this key message through world class branding and marketing. There are several marketing strategies like product innovation, pricing approach, promotion planning etc. This is useful, because it helps the company to understand both the strength of the current competitive position, and the strength of the companys position considering moving into. 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). But Costa coffee also has many other varieties of products which are loved by people. However it is present only in the top urban cities which adds to the positioning of Costa coffee. Please share the article link on social media to support our work. The global renowned brand is Costa Coffee. Redemption on the cards also extends to Costas popular Frescato range giving increased flexibility for customers which is paramount in todays market. To accelerate the business they have chosen the place to the most attractive areas like shopping malls, office site, and corporate areas. 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. One plain proofs is the companys to Rainforest Alliance laws where growth or coffee is ensure with all the social, environmental, and legal procedures. Costa Coffee currently holds the 2nd biggest brand of the world. An eighth P, Partners is often recommended for businesses to gain reach online (first mentioned in Digital mMarketing Excellence by Dave Chaffey and PR Smith although some would argue it's part of Place). Would you mind telling me the date? Now come to the promotion of Costa Coffee. The above analysis reveals that Costa Coffee has several strengths, such as its strong brand identity, commitment to product quality, and diversified product portfolio. A cost that will not deter them from pursuing the excellence of the coffee at Costa. In Donnelly, J. H. and George, W. R. (Eds). Leby, 2013. Costa coffee is owned by Whitbread and is more in competition with barrista then cafe coffee day in India. A popular marketing model, the marketing mix is can also be referred to as the 7Ps framework for the digital marketing mix. Secondly, with their consumer insight campaign, Costa Coffee teams with Slater were successful in educating the UK people that there was another coffee brand that was also tastier than Starbuck or Caff Nero. The word of mouth only has played a significant role in their success. The cash inflows are projected to increase much this year and in the next year with the development plans. Marketing Mix Strategy is the combination of 4P. 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. The Coffee Culture and the increase of Coffee drinkers in Pakistan show a healthy growth rate in 2005. So, to determine the profit or loss of the company from the sale of the product is necessary to having a proper pricing methodology. There should have a market survey to find out the aspect of whether the product is demanded in the market or not, that is also the important task in 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. Since 2007, Larry Londre's 9Ps of marketing has included: Original References and sources of 7Ps marketing mix. In addition to it can be talked about the ice coffee like Frsotino Coffee which is delicious, Coffee Cream Coffee which is delicious, Lemonade Coffee which is delicious, and Mocha Cream Coffee which is delicious by its flavor. Its distribution strategy includes opening stores in heavily populated areas with good transport links. 6. Therefore, makes it easy to Costa Coffee to take control of the market through prices and costs. This will make coffee become more expensive and less customers will be able to afford it. The 4Ps are price, place, product and promotion. Product It goes without saying that the service or product you're selling should be at the centre of every element of the marketing mix. The Baristas are quick to serve and always suggest other items to purchase, which in turn generates more sales as well. Copyright 2017 2025. Senior Growth Marketing Manager. Costa Coffee uses regular adverting on television and social media. Job in Antioch - Contra Costa County - CA California - USA , 94531. The 4Ps are Product, Price, Place, and Promotion, while the 7Ps are the 4Ps plus Processes, People, and Physical evidence. Customer felt amazed by the appreciation with combination of different service variation or in the decoration of the coffee in different symbols. Conventionally, the tool is used to identify whether new products, services or businesses have the potential to be profitable. Although there are still strong glimpses of global recession at present, between 2009 and 2010 branded coffee market expanded to a great extent. Customer have observed about Costa Coffee in different form with the title like 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. Job specializations: Marketing/PR. 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. Therefore, it should revisit its HR strategies. It is clear that CC is abreast with recent trends in technological world. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University. 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. As mentioned earlier, the brand is well-known for its richly brewed coffee and a collection of premium teas. Starbucks decided to follow a premium pricing strategy. Therefore, if the demand in the home market declines, it will be a big problem for the company. Similarly, with Costa Coffee app, customers can select their favorites and nearest store where the items are prepared and ready for them. However, people working for its franchisees are not included in this. *You can also browse our support articles here >. Having this in main Costa Coffees business-boosting beverage has added yet another term to the baffling menu boards of Britains coffee shops introducing the flat white (latte) and the babycino (frappuccino). 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.
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