TTABLE OF CONTENTSS

1. Introduction ……………………………………. 1

2. Marketing analysis …………………………………. 1

3. Target market ………………………………………. 1

4. Market segmentation ………………………………. 1

5. Economic profile ……………………………… 2

6. Marketing mix …………………………………….. 3

7. Market Opportunity ………………………….. 4

8. Conclusion and Recommendation …………… 5

Jiang Wen Wen (250002812)

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“”CCOSTA COFFEEE

“Introduction

CCosta coffee is a British multi-national coffeehouse company and entirely owned byy

WWhitbread PLC, which is a is a multinational hotel, coffee shop and restaurant companyy

hheadquartered in Unstable, United k\Kingdom (Annual Report And Accounts, 2009/10. Thee

ccompany has also introduced a bunch of new products over the years including Espres Ice coldd

Costa, flat white-, which is richer, than a latte. Creamier than a cappuccino, Costa light-ann

aamalgamation of new skimmed exploit and the brand's autograph mocha Italia merge. It alsoo

bbaked goods, sandwiches and soft drinks. Costa coffee currently has a diverse markett

iincorporating both young and old segments of the populationn.”

“Marketing analysiss

The speedy development in the business shows that the favorite for coffee is

increasingly mounting and the market for the production is rising too. By the close of 2010,

Costa coffee is one of the market leaders in the business with the principal market share in the

industry (Dhillon 2011). Sales of Costa Coffee were up by 15.3% equating to 602.4 pounds in

2014.”

“Target market”

“Costa coffee normally is not biased in its target market selection rather it tends to be

ddiverse when in it comes to the customers different taste preference, age variance andd

eeconomical variance. Costa coffee produces one of the best quality coffees which makes it to

ehhave a really big market share of the coffee industry+ (Khan 2011).”

“Market segmentationn”

“tThe following are some of the market segments Costa coffee serves: based on age and

pprofessional variables: young / mature professionals, students, youngsters, mature age, basedd

oon e conomic profile: privileged class, middle class and upper middle class members of thee
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ssociety, “”ethnic and religious variables and lastly marital and family status and also in

additions bbus section, train and airplane passengers who normally prefer take-alwayss.”

“EEconomic profilee:”

“TTo realize its visualization of serving the unsurpassed coffee in the accuratee

e Italian approachh, T The franchise has stuck to its traditional method of brewing coffee with

hits key interest is controlling the quality of brewing the coffee in each stage. Thus, it reallyyy

aaappeals to the different economic classes as peer its qualityy”

“AAge demographics: When it comes to age demographic most of the youth whose age rangee

ffrom 16 -24-make atleast 30 % of the market. They are rather attracted by the delicious menuss

tthe serene ambience of the location. In addition, the environment also gives them a sense off

lluxury and a certain class, thus it is bound to attract themm.”

“PProfessionals: It has mainly composed of people in the age bracket of 24-30 this group

makess about 45% of the firms market with the potential of still growing. The peacefull

eenvironment of the cafes attracts this group of customers and the wide range of

products .Theyy ccan hold formal to non-formal meetings in this jointt”

“FFamilies: They make up about 10 % of the market share though low there should be aims too

ggrow the numbers. The menu offered by Costa coffee is able to satisfy a variety of tastes thus

scan cater for the needs of all the family members from the parents to the childrenn

MMature consumers: this group tends to be attracted more by the quality of the products

andd their habitual traits/loyalty to the brandd”

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MMARKET SEGMENTATIONN
MATURE AGE FAMILIES
TEENAGERS AND STUDENTS YOUNG PROFESSIONALS

15.00%

10.00%
45.00%

30.00%

“NMarket positioningg:

tThe positioning strategy to be employed by is in keeping with their global positioningg-

tthey boast of the highest quality of coffee and when it comes to hygiene, they are still good at

itt. “”MMarketing mixx”

“PProduct in the marketing mix of Costa coffee – though coffee is the main product off

CCosta coffee, the franchise also deals with products like cold drinks, supplementary foodss,

ssandwiches among others. This is the most important of all the mix it employs this is becausee

cCosta coffee markets its products as per the customer liking. It lays emphasis on the pulll

aapproach of selling. It should also introduce new product lines at affordable prices this does

nnott mean cutting the price since the main aim of a business is to make profit thus; it may hurtt

tthe company’s profitability. Its greatest rival Starbucks on the other hand has an enlargedg

pproduct line ranging from special tea to hot chocolates, healthy organic sandwiches and foodss

tto cater for vegetarians. It also produces high quality coffee served by trained staff making it aa

wworthy competitorr”

PPrice in the marketing mix of Costa coffee –due to its high quality service andd

hygienee Costa coffee employs premium pricing. Costa coffee believes in quality beforee

pricingg thus their main goal is to offer quality service with pricing coming in as the secondaryy

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ggoal. Due to its quality, high prices will not even deter the customers from buying theirr

ccommodities (NPCS Team 2014). However, Costa coffees prices are relatively higher ass

ccompared to other coffee shops so the franchise. Should look for ways to reduce its prices butt

sstill offer quality services to attract other segments and increase their current market segmentt:

ggroup segments that may benefit may include students, lower middle class society, and youthss

aamong others. When it comes to price, Costa coffee is relatively expensive as compared too

Starbuckss

Promotions in the marketing mix of Costa coffee – Costa coffee mostly really on word

off fmouth publicity to be able to capture its audience it rarely invests on advertisements andd

ppromotions of its services. Thus, it should invest more on its sales promotion andd

aadvertisement. On the other hand, Starbucks has intensified promotion strategies that includee

oonline or coffee ordering service for people who do not have time to go to the outlets; it alsoo

ddeals with product placementt.

MMarket opportunityy

AA SWOT analysis should be done before a company ventures into a neww

eenvironment profit maximization should be the key goal of a firm when entering aa

nnew market. The business strength and the attractiveness of the market plays a keyy

yrole in decision of whether a business should come into into a new environment.

deliberate set up (Shaw 2008)).

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‘’The marketplace situation of Costa coffee, in regard to the product”

“ expansion framework and the sales statistics leads to the conclusion that a”

“ concentrated development strategy should be adapted.”

“Many people have the misconception that coffee is a luxury good this makes it hard for the”

“business to identify customer segments and causes difficulty in implementing market”

strategies.” This also reduces the business fan base Coffee is beneficial to the health and acts as”

a” stimulant thus, most of the customers should be told about the health benefits of coffee”

“Conclusion and Recommendation” “

. “After expansion the Costa, coffee franchise is bound to capture more and more customers.”

“The firms segments include the middle class and privileged people in the society making it”

“an” attractive and successful venture. The forecasts sales to the young youths are bound to”

“grow over the coming years, this is due to their fondness to follow trends and be recognized”

to” be of a certain class group. For the professionals Costa coffee offers good meeting points”

“for formal and non-formal meetings.”

“The forecast sales for Coastal coffee are projected to cultivate more in the coming time”

“Below as some of the methods, franchise ought to adopt to increase its sales volumes:”

“Costa is supposed to develop low budget promotion approaches. In addition, they should”

“consider advertising through billboards. Posters, brochures and television adverts and should”
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“also open more branches for its operations.

QQuestions about Costa Coffeee

1) Which brand of coffee has the highest caffeine substance?

Esp-resso coffee, Ristretto, or cappuccino?

Conventionally people tend to think it is espresso coffee but this is not the truth. The

quantity of caffeine depends on how it is prepared. The longer the brewing, the higher the

caffeine content.

2) How do you differentiate between flat white and a cappuccino?

a) There is a difference

b) One cannot tell the difference

The difference depends on the quantity of micro-foamed milk that is to be found on

top of the coffee. An espresso coffee has a lot of bubbly milk on top unlike the

cappuccino

3) Is there a simpler tip for adding flavor to coffee other than the basic sugar and cream?

Yes or No

To have a new taste sensation, you can do the following

i) Stir ground cinnamon

ii) Use whipped cream

iii) Use chocolate shavings

iv) Use cocoa mix

4) What is the required temperatures fro making coffee?

High, Low or Optimal temperatures.

Optimal temperatures required is between 92-96 c

5) Which is the most proffered type of coffee?

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Roasted coffee or Ground decaffeinated coffee

Well, people have different tastes but the Ground decaffeinated coffee is more proffered

to majority of people.

6) What time of the day is best suited for consuming coffee?

Mornig, Day Time or Evening?

It is more recommendable to use coffee in cold weather and not an hour to when you

going to sleep

7) Does coffee have any side effect?

Yes, No, or Not Sure

Yes, it makes one to stay for long without sleeping

8) What brand of coffee do people prefer most? Local or imported

Normally people have a preference for imported coffee since it is more refined

9) Can you say coffee is expensive to tea?

Yes or No

Generally it is, the price of coffee is quite high because of its caffeine and its market

analysis

10) Who are the most coffee addicts in the world? Children, the aged, the youth or Adults

and why?

According to a study carried out, it is evident that the youths are the most affected in this

scenario. This is because of its caffeine and the effects that it has

Marketing analysis Questioner

1) What product of Costa Coffee do you want?

i) Drinks ( Juice, Tea and Wine)

ii) Souvenir ( toys, cups, plates ,Saucers)

iii) Meals (Rice,Steaks,Pasta and Wheat)

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iv) Others

2) What services would you anticipate?

i) Reading materials

ii) An online store

iii) Free Wi-Fi

iv) Children play field

v) Others ( If any other, please state )

3) What is your preference in buying mugs or tumblers ( if given a discount for using your

own cup)

i) Yes

ii) No

iii) I do not mind

4) How convenient is it to get to Costa Coffee point-of-sale?

i) Very near

ii) Moderately easy

iii) It is quite far

(1770 WORDS)

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RReferencess

AAltmann, M. (2007). Coffee Shop Industry-A Strategicc

Analysis.

DDhillon, J. S. “Great Expectations but Nothing Fulfilled”–Indian Coffee House: A Casee

sStudy. Khan, G. M., & Uddin, S. J. (2011). Caribou Coffee enters the Middle Eastt.

International

JJournal of Entrepreneurship and Small Businesss, 14(3), 425-439.

NNPCS Team. (2014). Emerging Opportunities in Booming Indian Beer Industry (Why to

Investt, CCore Project Financials, Potential Buyers, Market Size & Analysis). NIIR

PROJECTT CCONSULTANCY SERVICESS.

SShaw, J., & Onkvisit, S. (2008). International marketing: strategy and theory. Routledgee.

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ASSIGNMENT COVERSHEET
THE FACULTY OF BUSINESS

STUDENT INFORMATION

STUDENT NO. 250002812 SURNAME Jiang

PHONE NO. GIVEN NAMES Wenwen

E-MAIL [email protected]

ASSESSMENT INFORMATION

BUSINESS ETHICS AND CORPORATE

COURSE
COURSE NAME SOCIAL RESPONSIBILITY BMB6001M
CODE
Assignment 1
ASSIGNMENT
COSTA COFFEE : MARKETING ANALYSIS
DETAILS
(TITLE)
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NAME R
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I DECLARE THAT THE ATTACHED WORK IS ENTIRELY MY OWN, EXCEPT WHERE WORK
QUOTED IS DULY ACKNOWLEDGED IN THE TEXT, AND THAT THIS WORK HAS NOT BEEN
SUBMITTED FOR ASSESSMENT IN ANY OTHER COURSE OR PROGRAM.

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