Starbucks Coffee Costa Coffee Marketing Essay

September 24, 2017 Marketing

One of the biggest and fastest turning industries today is the java industry. This industry fundamentally includes single coffeehouse, hotel coffeehouse and retail ironss. In this survey, we shall be concentrating on the Retail Ironss that belongs to the organized sector. The retail mercantile establishments portion a peculiar trade name and have similar sort of direction, with standardised concern processs and patterns. The major participants today covering market portion all over the universe are Starbucks Coffee, Barista Coffee, Cafe Coffee Day, Costa Coffee, etc.

For this survey, the two retail merchants – Starbucks Coffee and Costa Coffee are chosen because of their indistinguishable form of working and growing. They are the two major participants in the java cafe industry, and their clients see them both as interchangeable trade names. That is why it is of import to analyze how these trade names differentiate themselves from each other, and effort to better trade name trueness amongst the clients.

Aims of the Study

By carry oning a comparative survey of Starbucks Coffee and Costa Coffee, we shall analyze why one retail merchant is more successful than the other, and how the public presentation of these retail merchants can be improved. Analyzing the features, history, public presentation and selling schemes adopted by both the companies, and the client ‘s perceptual experience about the two is the centre point of this research. The aims of the survey can be summarized as below:

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To compare and analyze the 4P ‘s, viz. Product, Price, Promotion and Place, of Starbucks Coffee and Costa Coffee.

To understand how these cafes have positioned them in order to distinguish them in the market.

To happen out the clients perceptual experiences and penchants about both these coffeehouses and what motivates the client to see these java houses.

To place the countries where both organisations are executing good and countries where they need to better.

Research Methodology

The methodological analysis for the research includes:

Survey

Collection of Datas

Findingss

Recommendations

Formulation of Questionnaire

Classification & A ; Analysis

Roll uping primary informations from the clients sing Starbucks Coffee and Costa Coffee and the forces of the organisation through observations, make fulling up of questionnaires every bit good as questioning them. The sample size is really little, i.e. merely 5 clients, each belonging to a different age group and background.

Roll uping relevant secondary informations from assorted beginnings like magazines, books, diaries, cyberspace, and Company ‘s web site.

The informations so collected shall be classified, tabulated and analyzed through graphs and pie charts to pull out findings from the collected information. Based on the relevant secondary and primary informations, a comparative analysis will be done so as to happen out the countries of excellence and countries necessitating betterment.

In the visible radiation of these findings, critical facets shall be evaluated and recommendations and suggestions will be provided for the overall betterment of the Starbucks Coffee Company.

Knowing Starbucks Coffee Company

Starbucks Coffee Company ( Starbucks ) , one of the universe ‘s premier roasters and retail merchants of forte java, has travelled a journey get downing from opening merely a narrow, individual shop in Seattle ‘s historic Pike Place Market in 1979, to more than 17,000 shops in 50 states today.

Starbucks offers one of the finest and fresh-roasted java beans in the universe. The java purchasers of the company personally travel to the java farms in Latin America, Africa and Asia to choose the best quality ‘Arabica ‘ beans, which is roasted into a blend entirely for Starbucks by the Starbucks experts, who bring out the rich spirit of the beans.

Mission Statement

“ To animate and foster the human spirit – one individual, one cup and one vicinity at a clip. ”

Starbucks – Merchandises

Starbucks offers a assortment of merchandises, runing from hot & A ; cold drinks to comestibles like sandwiches, salads, wraps, ice picks, etc. Keeping in head the wellness and health of its clients, it has a separate bill of fare for low-calorie nutrient and drinks, along with its nutritionary informations. Knowing that some of its clients may be allergic to certain ingredients, the company offers merchandises under Food Allergens subdivision, stipulating the nutrient and drinks which do non incorporate the ingredient the client is allergic to. The merchandises are good designed, and are served in different steps, non on the footing of measure, but harmonizing to the value for money. They besides provide bottled drinks, which can be refrigerated and used at place subsequently on. Furthermore, there is a separate bill of fare for childs maintaining in head their gustatory sensation and wellness.

Starbucks – Monetary value

Starbucks has a ‘skim pricing policy ‘ . They began with a higher monetary value, and skimmed the pick of the market. With the growing in the figure of mercantile establishments, came the benefits of economic systems of graduated table. Because of this, they have been able to bit by bit lower their monetary values, and entreaty to different sections of their mark market. The chief factors that affect their pricing are their cost of goods sold, which is rather high because imports form a bulk of its merchandises.

Starbucks – Topographic point

Starbucks cater to their mark market with strategically located mercantile establishments at chief markets, promenades, and household amusement centres. The shops are considered to be holding a warm and welcoming atmosphere whether for run intoing friends and household, or basking clip entirely. There are around 8870 company owned shops and 8139 licensed shops.

Starbucks – Promotion

Starbucks carries out mass publicity runs, chiefly in the signifier of publicities on the Print, Television and Radio Medias. At present, they do non trust to a great extent on advertisement, but rely more on sponsorships and strategic confederations with other corporations. It besides takes portion in assorted gross revenues publicity activities to assist increase gross revenues at their mercantile establishments, some of which are Sponsorships, Collaborations, Tie-ups, Starbucks Membership Card, etc.

Starbucks – Peoples

The people at the shops have to undergo a preparation process so that they have an in-depth cognition of the company ‘s merchandises and are able to supply best client service. All employees are treated as spouses and provided with comprehensive wellness coverage and stock in the company through the ‘Bean Stock ‘ plan to instill a sense of ownership and actuate them to execute their best.

Starbucks – Procedure

The order and bringing procedure at Starbucks is based on self- service, where a client goes up to the counter to put the order, and goes back to the counter to pick the bringing once it is prepared. The company believes that although it is merely a minute, in which one manus making over the counter to show a cup to another outstretched manus, but it establishes a connexion between the company and its clients. ( Starbucks Coffee, n.d. )

Knowing Costa Coffee

Costa java was introduced in 1971 at 9 Newport Street, London, by Sergio and Bruno Costa. World ‘s best ‘Arabica ‘ and ‘Robusta ‘ beans, sourced from Central and South America, Africa and the Far East, are blended to make a alone gustatory sensation and olfactory property from its ain blending company ( Mocha Italia ) . Costa was the first UK-based java retail concatenation which operates the full java devising process – from sourcing, blending, roasting, crunching and doing java.

Costa Coffee – Merchandises

Like many other trade names, Costa Coffee besides offers a broad scope of merchandises in its retail mercantile establishments which includes hot cocoa, teas and extracts, iced javas & A ; frescato. The USP of the company is its customized merchandises without any excess charge. It prepares its java harmonizing to the exact demand of the client, where the client can province its penchant in footings of caffeinated or decaffeinated java ; skimmed, full fat or soybean milk ; assortment of sirups ; spirits of vanilla, hazelnut or caramel, etc. Furthermore, the shop provides a nutritionary content chart and lists of allergens in their nutrient and drinks for its health-conscious clients.

Costa Coffee – Monetary value

The pricing policy of Costa Coffee ‘s is non to touch the upper pick of the society, but to perforate the market. Hence, monetary value of its merchandises is lower than that of Starbucks ‘ .

Costa Coffee – Topographic point

The location of Costa Coffee mercantile establishments is in the countries where there is maximal youth motion. It is found by and large near colleges, shopping promenades, gasoline pumps, and countries which are easy seeable and accessible. It is besides located at all 57 Moto expressway services around UK. This shows the handiness and handiness of the Coffee Cafe Day outlets for thrust in clients.

Costa Coffee – Promotion

Costa Coffee does non believe much in mass media publicities. But like other trade names, it besides has Costa Coffee Club Card. Its publicity techniques are alone. For e.g. – it offers points when a client goes to a Moto expressway services.

Costa Coffee – Peoples

The people at Costa Coffee are characteristically trained to be pleasant, polite and positive with the clients. They guarantee that the clients have a memorable visit.

Costa Coffee – Procedure

The order and bringing procedure at Costa is non based on self- service. The staff member fetches the order to the tabular array of the client. ( Costa Coffee, n.d. )

Findingss and Recommendations

Starbucks has an highly strong trade name image but they need to work hard on bettering their quality of merchandise as gustatory sensation plays a major function in java industry.

Starbucks should fix its communicating plan in such a manner that it changes clients ‘ perceptual experience and makes it an low-cost trade name.

A bulk of Costa mercantile establishments are located in the classy countries. Starbucks must open some mercantile establishments near residential countries in order to increase its market coverage.

Starbucks should see a alteration in its bringing procedure. It must switch to a more convenient format where a cafe attender delivers the merchandise to the tabular array. This alteration may look undistinguished but it besides improves client satisfaction.

Decision

Our study made us make the decision that both, Costa Coffee and Starbucks Coffee, enjoys equal client penchant. Although monetary value and promotional strategies influence the determination of the people, but the gustatory sensation of java is a really of import factor in make up one’s minding the shop to see. Costa java has a alone gustatory sensation which attracts the clients. Furthermore, people love to sit in the first-class atmosphere provided by Costa java. The visitants in Starbucks ‘ mercantile establishments are fundamentally executives and elect category, whereas Costa Coffee is preferred by young person. As far the monetary values were concerned, our research led us to the decision that the Costa Coffee offered low monetary values as compared to Starbucks Coffee and Starbucks can ask for more crowd if they cut down their monetary values, along with supplying offers.

Bibliography

Coffee Market. ( n.d. ) . Retrieved May 4, 2011, from hypertext transfer protocol: //www.maketradefair.com/assets/english/CoffeeMarket.pdf

Costa Coffee. ( n.d. ) . Retrieved May 4, 2011, from hypertext transfer protocol: //www.costa.co.uk/

Starbucks Coffee. ( n.d. ) . Retrieved May 4, 2011, from hypertext transfer protocol: //www.starbucks.com/

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