costa coffee marketing mix 7ps

So, placement is the very important topics in the context of the marketing Mix. This in turn helps increase sales as customers tend to buy more when they spend more time at the coffee shop. It also consists of Service Mix (Process, People, Physical Evidence) strategies. 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. The 4Ps are price, place, product and promotion. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. Its distribution strategy includes opening stores in heavily populated areas with good transport links. Marketing of Services, Conference Proceedings. Similarly, with Costa Coffee app, customers can select their favorites and nearest store where the items are prepared and ready for them. At least there are no ATL promotions seen. 3.1.1 Mark Size and its characteristics Job specializations: Marketing/PR. Place/Distribution strategies of Costa Coffee. Costa Coffee is a British coffeehouse chain. Partners: Hubspot looks to form partnerships with major media companies such as Facebook and Google plus local partners including Smart Insights who it is collaborating with on research in Europe. This strong brand recognition has allowed it to build a loyal customer base and gain a competitive advantage over other coffeehouse chains. All work is written to order. The Costa Coffee brand already has a premium status in all its markets. Thus, Costa coffee does not think that price is important. Three more pillars have found their place in the extended marketing mix that shape marketers' decision-making process. The creator of the 7Ps of marketing is E. Jerome McCarthy in 1960. This success product development strategy implemented by Costa Coffee has become it start performer this year, with sales up 35% compare to 2008. 6.4 Promotion Companies can also use the 7Ps model to set objectives, conduct a SWOT analysis and undertake competitive analysis. 3.2.4 Social/Cultural/Technological Therefore, makes it easy to Costa Coffee to take control of the market through prices and costs. Moreover it is found that the premium pricing is carrying the brand value and high quality of the product. 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. It offers convenient access for customers who are looking for a quick cup of coffee. 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. After the emergence of the service economy, the 4Ps were promoted to 7Ps of Marketing Mix. It is always recommended to expand the current product mix by the diversification of the product diversification and increasing the product depth. Do you have a 2:1 degree or higher? [Online] Available at: http://www.redbrick.me/lifestyle/10-facts-costa/ [Accessed 11 January 2018]. 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. Samsung Electronics products are designed in 6 global design centres and manufactured in 53 global . 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. Thank you so much! But since the goal of Costa Coffee is towards a long-term dominance and stability in the brewing industry, then the pursuit of these promotional campaigns will be beneficial for the company in the long run. 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. 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. To conduct a detailed marketing audit of CC, it is imperative to understand that CC is a growing globally. After expansion Costa will be able to establish a firm and strong foothold in all the major markets of Pakistan. However, it is worth mentioning that the coffee house has recently apologized for a rude ad. Lastly, Costa Coffee is susceptible to fluctuations in the global economy and political climate. 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. The professionals on the other hand, always seem to be in the hunt for calming and serene locations to carry out unofficial or official business meetings. 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. Job in San Francisco - San Francisco County - CA California - USA , 94199. The Extended Marketing Mix - The 7Ps of Marketing. 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. Before expanding into any market, its opportunities and risks have to be analyzed. Digital Marketing, Marketing Manager. But Costa coffee also has many other varieties of products which are loved by people. Some of which sell cheaper products which seem affordable to more customers. Please share the article link on social media to support our work. (1964). Team Leader, Area Manager, Retail Manager, Sales Manager. Many analysts also argue that it has a minimal spend on marketing and advertising. Price in the marketing mix of Costa coffee Costa coffee believes in Premium pricing because of its product varieties and its quality. 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. Costa Coffee should consider pursuing more international market expansions which should help it increase its revenue. Product in the marketing mix of Costa coffee - The main product of the firm is Coffee. More and more retailers are opting for different coffee brands. There is also a market survey regarding pricing strategy of Costa Coffee and it found from the result of the survey is that the premium range pricing is popular as generally accepted by the customer and there is no complain of having high price to the product. Marketing Strategy of Starbucks analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). Moreover, CC has been constantly improving its operation-based and service-oriented technology. 3. In Donnelly, J. H. and George, W. R. (Eds). The quality of service in coffee shops is very high. Costa Coffee (CC) is a fast growing global coffee venture. The marketing mix identifies the main components of the coffee company's marketing plan, namely, product, place, promotion, and price (the four Ps). With the extension of growth, maturity, decline phase the product life cycle define the different stages of the product and according to which the product is designed. It has opened as well celebrated their 1000th coffee shop in Cardiff since 2009 and then globally it gave a message they are going to open other outlets in the other country. He holds an MSc in Tourism & Hospitality from the University of Sunderland. 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. They have expanded their market in the different zone of Asia, Africa. But the Marketing Mix has been in the market for almost 70 . Marketing Strategies and Organization: Structure for Service Firms. The business of Costa Coffee is operating more than 2121 outlets globally. 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. The traditional 7Ps of marketing consist of: Free essential marketing models Increasing competition from existing coffee shops is a challenge. In 1981, three more "service specific" P's were added process, people, and physical evidencegiving us the 7Ps of marketing, which are also relevant for product-based businesses. Check out these detailed articles on. This was an enormous opportunity area for Costa Coffee due to was arriving to a new market that the population were aware of the product, however not every Pakistani was familiarize with Costa Coffee Brand. Macinatura: Grind: Every cup of Costa is made from freshly ground beans" 3. In Dave Chaffey's book: Digital Marketing: Strategy, Implementation and Practice, this model was refreshed and applied to online channels to give a practical approach which works well for multichannel businesses. These are- Place is required for the distribution of the product. Five forces analysis assumes that there are five important forces that determinate competitive power in the business. Daniel Berehulak / Getty. With years, theories become old and people develop newer frameworks. May 10, 2019 By Hitesh Bhasin Filed Under: Marketing Mix of Brands. Marketing mix plan of Costa Coffee: The 4p of Costa coffee is given below: Product: The main target of Costa coffee is being the number one coffee brand. Additionally, CC has won the consumers trust as giving value for money. It has a loyalty program. 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. Economic downturns can lead to reduced consumer spending on non-essential items such as premium coffee beverages. The biggest strength of CC is its being one of the most innovative brands in the UKs coffee market. 02/20/2021. 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. Job in Antioch - Contra Costa County - CA California - USA , 94531. Moreover, it has the policy of pricing at premier for Hot Chocolates by order of customer, Specialty Drinks by order of customer, Teas by order of customer and Infusions by order of customer, Cold Drinks by order of customer, Foods by order of customer etc. Marketing Mix of Costa Coffee is the research topic for emphasizing on the marketing strategies developed by the firm. After thorough research, and competitive analysis the perfect locations in terms of exposure, accessibility and competitive edge have been acquired. The global renowned brand is Costa Coffee. 2. Developing and emerging economies are growing fast due to globalization and the world economy is becoming interdependent. 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. "It's a small-ish coffee shop, but they have plenty of seating indoors and outdoors." more. This is a top-level overview; you would take this into greater detail and ask the following questions: 1. 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. That is why, it called, and pricing of a product is the huge competitive issue in the competitive market. Their first coffee shop was in Vauxhall Bridge Road, London. However it is present only in the top urban cities which adds to the positioning of Costa coffee. Market analysis in the Marketing strategy of Costa Coffee - Coffee consumption in globally is growing at the rate of 2%. 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. Promotion can increase the sales. So, to determine the profit or loss of the company from the sale of the product is necessary to having a proper pricing methodology. The club of loyalty program allows getting discount on foods. However Costa coffee uses a number of BTL promotions like advertising on buses and out of door media. Costa Coffee uses regular adverting on television and social media. 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. 3.2.2 Political 3.1.4 Competition However promotions us low key also because Costa coffee wants to rely more on word of mouth publicity. Place is required for the display of the product. Handcrafted Beverages :Fresh -brewed coffee ,hot and iced espresso beverages , Frappuccino coffee and non-coffee blended beverages, smoothies and Tazo ' teas . The name Costa signifies luxury, excellence and perfection all over the world. p. 47- 52. Traditionally, the marketing mix was "the 4Ps of marketing": product, price, place, and promotion. It is well-known for the quality of its products. McCarthy (1960) was first to suggest the . The marketing mix helps marketers outline and design educated . Costa Coffee takes a very calculated approach to pricing, as it does with all things. It also focuses heavily on its home soil, the UK. Therefore, there is no point of substituting product by any other brand in Pakistan. Likewise, broadening the target market to include slightly cheaper coffees of high quality is worth considering. The 7Ps of Marketing is the Price, Place, Promotion, Product, People, Process and finally, Physical Evidence. Costa Coffee is well-known for its distinctive logo, store design, and product packaging. There are several marketing strategies like product innovation, pricing approach, promotion planning etc. The raw coffee beans are responsibly sourced from 100% Rainforest Alliance Certified farms, which shows their ethical values to the consumer (Costa, 2023). 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. American Marketing Association. Study for free with our range of university lectures! On the other hand, exhibitions, sponsorship, seminars, conferences, and events are another form of promotion methodology. Bitner, M. J. and Booms, H. (1981). However the presence in India is very much limited. The 4Ps are Product, Price, Place, and Promotion, while the 7Ps are the 4Ps plus Processes, People, and Physical evidence. 3.2.1 Demographic (Global) Most of the awareness will be through the word of mouth of people amongst the masses. Its physical environment strategies involve providing excellent indoor seating, attractive dcor, and high-quality furniture. Advertising and Marketing of Consumer Items, Positive and Negative Impact of Social Media, Role of a Leader and Function of a Manager, Recruitment and Selection Process of Tesco, Sample Contract Law Questions and Answers, Gender Pay Gap and Why do Men Get Paid More than Women. 1. The market observation that is found ultimately for Costa Coffee is that the most selling product of Costa is Coffee. 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). 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. Dedicated to your worth and value as a human being! Job specializations: Management. Costa, U., 2018. 3.2 The Macro Environment While this will increase its business, it may also impact on its profit margins once those delivery companies take away their fees. Pricing has a big impact on by defining the pricing methodology to set the price for the entire marketing strategy. 5.1 Sales objectives A product is the item of use that is produced by the producer according to demand of the consumer needs and demand to satisfy the consumer needs or for the specific groups. Place is required for the selling of the product. Basic Marketing. 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. 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. 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. 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. Here is the marketing mix of Costa coffee. 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. Assistant store manager. 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 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 attractiveness of any market depends on the certain factors that have to be duly considered before launching any new project and even after launching it to continue a balanced growth of the market share. Estimates suggest that though global economy is sluggish, per capita income is on the rise especially in China and India (CCs biggest prospective markets). The practical phenomenon of Costa is that Costa basically develops and synchronizes the marketing mix of this in response to the product of Coffee. You will generally find me online at the Marketing91 Academy. Government policy changes could also interrupt the supply chains. 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 Marketing Strategy & Mix covers its product, pricing, advertising & distribution strategies. In this business analysis case, Starbucks uses its 4Ps to develop its brand image and ensure profitability. Similarly, Costa Coffee does not have a huge number of stores in total like some of its competitors. Together, they welcome with a smile more than 10 million customers a month. This is a detailed SWOT analysis of Costa Coffee. Furthermore, Costas recent price increases have made many consumers furious (Hunter, 2022). After completing a Bachelors degree in Business and Marketing, he went on to gain an MBA from the University of Bradford, the UK. And those food lovers can participate in the online survey to recommend their choice of places. A cost that will not deter them from pursuing the excellence of the coffee at Costa. Costa has proved to be a first-rate spot for the purpose, as the sales figures suggest. 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. It offers detailed insights into the strengths and the weaknesses of Costa Coffee. 6.5 People White Sparrow Coffee. 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. Your email address will not be published. Senior Growth Marketing Manager. My personal experience regarding Costa Coffee is that Costa Coffee has attractive pricing strategy like discounting offers and I felt amazed by the appreciation of thus offer variation in the form of variation at pricing. No one else is involved. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. As mentioned earlier, the brand is well-known for its richly brewed coffee and a collection of premium teas. It is this sense of responsibility that is reflected in the title responsible coffee (Costa Coffee, 2012). 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. Product in the marketing mix of Costa coffee The main product of the firm is Coffee. One of the reasons for choosing the privileged and higher middle classes in the target market is the prices. LinkedIn. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. This is a detailed analysis of the marketing mix of Starbucks. Dr Hanlon has expertise in the strategic application of social media for business and the move from digitization, to digitalization and digital transformation for business. Physical Evidence: Consistent branding across communications. Track and visualise your KPIs in real-time with Hurree. 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