Coffee Chain in UK
Costa coffee founded in 1971 in London, UK. Now, it has become the biggest top coffee shop chain in UK. However, Costa should be prepared for danger in times of peace. In this report, some suggestions will be proposed to improve Costa coffee’s marketing mix over the next three years. We begin with a brief description of the data we collected, then go on to analyses coffee shop market environment in UK; the next section looks at Costa coffee’s current statement of marketing mix, and finally we give recommendation of the marketing mix in the next year for Costa Coffee. Section 1 Primary research method Primary data was collected in the form of questionnaire with 15 questions, which was posted on the Internet. Also,
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Therefore, we do not recommend them adopting the expansion strategy in marketing, which means in next 3 years, one of marketing objectives should be retaining their profitability, market share and their leading position in UK. (Figure 2.1)
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 2006 2008 2010 2011 Starbucks Costa Nero other
Figure 2.1
4
Micro-environment:
Threats of new entry Low average cost (+) Customers:
Competitors
Strong brand identity (+) Low entry barrier e.g. special knowledge and capital requirement (-) Competitors: Saturated market Many competitors with little differentiation (Starbucks and Nero) Suppliers
Low switching cost leads to low loyalty (-) Price sensitive (-) Low bargaining power (+)
Costa Coffee
Customers
Low bargaining power (+) High delivery cost (-) Unstable goods quality and quantity (-)
Tea/ hot chocolate/ Juice Fast food chains provide drinks
From the micro-environment analysis, competitors issue is their main inhibitor while others also affect their sales so that we recommend they should increase their customer loyalty to outstanding competitors in this market even though the customer could easy to change their buying behaviour. Target market: The results of our questionnaire in Nottingham suggest that some respondents used ‘pricy’, ‘expensive’ etc. to describe their feeling about Costa coffee. Meanwhile, Costa coffee describes itself as Italian
Marketing is a competitive field that companies outdo each other to make a profit. Café Campesino is a retail-based company that assists farmers to sell their products in a fair and profitable trade. The American coffee industry is that which is on growth with more than 64% of American drinks an average of a cup of coffee a day. The coffee industry just like other agricultural products is affected by a host of factors from climatic variations to fluctuation of prices. This paper seeks to look at Café Campesino's marketing plan in the coffee industry. The paper appreciates the effect
product and starting a price war with competitors that would damage margins. In addition, a low priced
Cameron’s Coffee was founded in 1978 by Jim Cameron and was later on purchased by Jim Kirkpatrick in 1999. The company specializes in ‘…premium flavored coffees, teas and powdered cocoa and cappuccino mixes (Petersen).’ Even though the coffee market is almost saturated, Cameron is looking to expand its operations not only in the United States, but in Europe and other continents. The company currently has a great advantage in this tight market, due to its dedication to quality. But in order to increase the probability for success, Cameron’s Coffee will need to expand its knowledge and involvement in technology and communication.
Following the introduction of the new flavored coffee, there is need for coming up with a sales strategy for increasing the sales of the new product. The strategy gives details on how the product will reach the customers, and in the end, making them aware of the difference between the new product-line with the other products from the company. These strategies are necessary for improving the total company sales, consequently increasing the profitability of the company. The strategy is also necessary for the coming up with sales activities that position the flavored coffee to a state where it can gain a competitive advantage in the market. The most appropriate sales strategy of choice for meeting the sales objective of the company is the triple-tiered sales strategy (Frain, 2009).
Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world with over 16,000 stores in 50 countries. This report evaluates major internal and external factors affecting Starbucks using various analytical techniques. Based on the Starbucks brand in UK, it identifies suitable marketing strategies for Starbucks to expand its business in the UK market within the next two years. In line with the chosen marketing strategies, recommendations for the marketing mix are discussed.
In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.
The “Coffee Wars – The Big Three: Starbucks, McDonald’s and Dunkin’ Donuts” article focuses on the company analysis of the Starbucks brand and how its main competitors, McDonald’s and Dunkin Donuts, has affected their brand and driven competition higher. Even though there are many companies trying to enter the specialty coffee market, these three companies own the majority of the market share. With Starbucks’ top quality and above average prices they hold a different market than the fast coffee/food market of Dunkin’ Donuts and Starbucks; yet the competitive moves Dunkin’ Donuts has made over the years in order to compete with Starbucks and surpass McDonald’s has driven competition up between all three companies. The competition has stiffened ever more in the past ten years due to the changing economy. This led to “the big three” to come up with different techniques to gain competitive advantage over the other. Although the competition between these companies is to gain most of the market share, consumers are still loyal to a certain brand; this makes it difficult to gain each other’s clientele. McDonald’s continues to appeal to customers who want value and speed, Dunkin’ Donuts focuses on the middle-class, while Starbucks a customer who desires a higher quality product along with being recognized for using the brand.
The benefits that the changes in the coffee culture bring are multiple and we see a coffee culture highly adapted to the new trend. This dissertation can be useful for foreign coffee shops to gain knowledge about the Swedish coffee market and its culture. New markets are opening through cultural changes, so marketers and others searching for new marketing opportunities on the Swedish coffee market should read this paper to get ideas, advices and inspiration.
Entering the market requires heavy investment in establishing a name and make lots of outlets. It is a growing market with lots of pioneers that can make branches anywhere and threat the other chain in there selling areas.
Opening The Coffee Club Restaurant in Malaysia especially in Kuala Lumpur, the heart of Malaysia, will be different from the Australian Coffee Club Restaurant. There are many things that Coffee Club Australia need to think of before planning to open up a Coffee Club Restaurant in Malaysia. The area that they need to focus on before penetrating into Malaysia are from the analysis of the external environment factors, SWOT analysis, marketing mix strategies and also the segmentation.
Entrants erode the market and rarely grow it enough to the incumbent’s advantage. New entrants have an impact on the industry business but at a moderate level. This is mainly because new firms will find it difficult to compete against the incumbents’ strong brand, like Starbucks and McDonalds, and because the market is saturated. However, the costs of entry are relatively low. Most of the raw materials are cheap and the distribution chain is not complicated. This makes it easy for new companies to enter the market. Also, established companies might leverage their brands as they enter the industry to compete against the incumbents.
1 2 3 4 5 Large market share Good reputation on brand name Good promotional effectiveness Sufficient material supplies Design specific menu
Starbucks will be the first come in your mind when you want to have a cup of coffee. Don’t you feel curious about why is Starbucks so successful? This report explains how Starbucks take advantage in consumer purchase decision making process, how does Starbucks attract customer, how does Starbucks segment its market and new trends in society affect purchasing process.
Brand E has a Market Share of 7%, a Penetration rate of 17% and a Purchase Frequency of 3.65, in comparison to the market leader Brand A, which holds a 35% Market Share. The table demonstrates how larger brands (A, B and C) have higher penetrations compared to the smaller brands. This establishes that the Double Jeopardy Law is in action. The larger brands have more consumers who purchase more often, in comparison with smaller brands, like Brand E, which have fewer customers, which purchase less often (Sharp 2010). This demonstrates that Brand E will have lower loyalty metrics in comparison to the market leaders.
Consumption of coffee in the world has been on the rise and so has it in the United Kingdom. Producers of coffee are mainly African countries (Kenya and Ethiopia) and Brazil in South America. Coffees from those countries are exported to countries like England and the rest where they are refined to meet the client’s expectation as far as taste is concerned. Here in United Kingdom there are many coffee brands and shops/stores, but in this paper only Costa and Starbuck will be discussed. The basis of the discussion is to find out consumer preference over each other and why exactly. Costa is a British multinational coffee house with approximately 1,755 outlets in the United Kingdom and 1,106 outlets in other countries. Starbuck is still a multinational coffeehouse based in the United States of America. It has 12, 356 stores world, but fifty percent of the stores are found in the united states, in United Kingdom there are only 808 stores as per early January 2015. The paper will determine the superior rival among the two coffeehouses.