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Costa & McDonalds Marketing Plans

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Introduction For this assignment I have been asked to do a report on the marketing techniques used by McDonalds & Costa in order to win a contract. The companies I chose for this marketing report is McDonalds and Costa. I will first begin with is McDonalds. http://upload.wikimedia.org/wikipedia/commons/thumb/a/a9/Mcdonalds-90s-logo.svg/2000px-Mcdonalds-90s-logo.svg.png About McDonalds McDonald’s is the world’s largest chain of hamburger fast food restaurants. It serves over 68 million customers daily in 119 countries. It was founded in 1940 and now has over 35,000 locations. The revenue generated by McDonald’s is that of $28.1057 billion as of 2013. It also employs an impressive 440,000 people. The types of products McDonalds produce are hamburgers, cheeseburger, chicken burgers and French fries. The Breakfast menu includes items, such as, soft drinks, milkshakes and desserts. It has also recently decided to introduce a new range of café items. In the café range it now offers ‘premium’ coffee and tea as well as light snacks i.e. doughnuts, muffins. http://upload.wikimedia.org/wikipedia/en/thumb/4/42/CostaLogo.svg/1024px-CostaLogo.svg.png About Costa Costa is a British multinational coffeehouse. It is owned by Whitbread and is the second largest coffeehouse chain in the world. Starbucks is the largest but Costa is the largest in the UK. It was founded in 1971 it then got acquired by Whitbread in 1995. It now has 2,861 stores across 30 countries. The types of products Costa produces are coffee, tea and iced drinks. ...read more.


Product development - An example of Costa doing this is there Costa Express machines. It allows Costa’s customers to use the express machine in a rush to have a select lot of hot drinks sold by costa in normal outlets. Costa Expresses are found in many places such as fuel stations, airports and WHSmith’s stores. Diversification - An example of Costa doing this is there Costa ICE menu, which not only incudes slush puppies like, drinks but also coffee flavoured drinks. You can have it with and without ice as well as blended or not blended. This is not normally a product you would find in costa or even normally wanted by Costa’s target audience. Survival Strategies are: Branding – There are no adverts normally shown for Costa unlike McDonald’s. The way Costa advertises is by having stores in high streets and getting people to sign up and use their coffee club membership. Once signed up you get email updates on offers and points balance. Unlike McDonald’s Costa don’t really want to nor intend to have the same target consumer. Whereas McDonalds accepts anybody Costa prefers to have the upper and middle income customers. Relationship Marketing – Costa does this by offering you points when you buy your drinks and food £1 spent is equal to five points each point is worth a penny. Unlike McDonalds it’s not limited to a certain range of product but everything Costa sell. ...read more.


The cost is small to them as all they need is a writer and mail server to do this. The time till this becomes effective is not normally that long as people have email accounts linked to phones meaning they can pop into the nearest coffee and redeem whatever they get sent instantly. Relationship Marketing McDonald’s offers a loyalty card this works by offering the customer a free coffee for every six you buy. Costa does this by offering you points when you buy your drinks and food £1 spent is equal to five points each point is worth a penny. The size of this for Costa is huge also because they have to offer all their products to customers for free when the customer has the correct amount it can be a big expense on the company. It takes Costa a long to medium term for to this to be effective as people need to sign up for it and then generate enough points. Costa also benefits out of this by having a huge database with what that individual customers has brought meaning more personalized emails and instore experience. The cost to McDonalds is less as all there offering to their customers a free coffee after every six but in the long term this could cost more as there is not any customer specific details. It will take a short term to become effective as customers that buy coffee’s already take part in the scheme and don’t have to sign up for anything. ...read more.

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