• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12
  13. 13
  14. 14
  15. 15
  16. 16
  17. 17
  18. 18
  19. 19
  20. 20
  21. 21
  22. 22
  23. 23
  24. 24
  25. 25
  26. 26
  27. 27

STARBUCKS / COSTA COFFEE: Marketing analysis of two leading brands in the coffee shop market

Extracts from this document...


Academic Year: 2008 / 2009 Semester 1/ Semester 2 Module code: MK1016 Module title: Marketing Principles Subject Area: Marketing Module Leader: William Mott Assessment: Group Presentation Weighting: 50 % STARBUCKS / COSTA COFFEE Marketing analysis of two leading brands in the coffee shop market MALLET Magali POUMAROUX Aur´┐Żlia VEILLE Julianne I. INTRODUCTION.......................................................................................3 A. WHEN AND WHY DO PEOPLE GO TO COFFEE SHOPS? 3 B. HISTORICAL BACKGROUND STARBUCKS 3 C. HISTORICAL BACKGROUND COSTA COFFEE 4 II.CONTROLLABLE.....................................................................................4 A. 4 P STARBUCKS 4 1) PRODUCT 4 2) PRICE 5 3) PLACE 6 4) PROMOTION 6 B. 4 P COSTA COFFEE 6 1) PRODUCT 6 2) PRICE 7 3) PLACE 7 4) PROMOTION 8 III. UNCONTROLLABLE...............................................................................9 A. PEEST ANALYSIS 9 1) POLITICAL AND LEGAL FORCES 9 2) ECONOMICAL FORCES 10 3) ECOLOGICAL AND PHYSICAL FORCES 11 4) SOCIAL AND CULTURAL FORCES 12 5) TECHNOLOGICAL FORCES 15 B. COMPETITORS 16 1) THE COFFEE SHOPS 17 2) STORE CATERING 18 3) PUBS 19 IV. SWOT ANALYSIS.................................................................................19 A. STARBUCKS 19 B. COSTA COFFEE 21 V. MARKET SEGMENTATION......................................................................24 A. CONSUMER SEGMENTATION 24 1) BEHAVIOURAL 24 2) PSYCHOGRAPHIC 25 3) PROFILE 25 VI. CONCLUSION.......................................................................................26 BIBLIOGRAPHY A. BOOKS 27 B. INTERNET WEBSITES 27 I. INTRODUCTION A. When and why do people go to coffee shops? Most of the time, people visit coffee shops while they are travelling or shopping. That's why coffee shops are well placed to respond to this need (high street centres, airports, railway stations...). The branded coffee shops are very popular. It's a good place to meet friends in a relaxing atmosphere with comfortable seating. The most popular sentiment expressed by people is however that the coffee served in branded coffee shops is expensive. So why do people still go to these coffee shops? First because people like coffee. And second because they like going to a place where they can just sit and talk and have a drink. Coffee shops have an up-market image which appeals to a certain part of the population. ...read more.


People from these socio-economic categories like the coffee shops environment and the choice and variety of flavours of coffee. Between 2001 and 2005 there was an increase in these categories, with the number of AB rising by 5%. The A, B, C1 categories count for 54% of the adult population visiting a coffee shop. This is due to an increase in the number of higher education graduates with a move towards more managerial roles and away from manual work. At the same time, there was a decrease in the percentage of those in the C2, D and E categories. III. Cultural forces i) Attitude to health Many studies have been conducted on caffeine effects and some of them want to warn consumers. Even if caffeine has stimulating effects on our body ( diminution of fatigue), drinking coffee has been linked with insomnia, stomach problems, heart disease, high blood pressure and miscarriage but the real effect on human's health is still being debated. In order to help solve the obesity problem in the UK, the FSA (Food Standards Agency) introduced a legislation which makes it compulsory for all food and drinks sellers to provide the calorie content of any product they offer. This is why companies have to now show nutritional information. As many of the coffee shops products have a high calorie content, this is likely to affect sales. ii) Subculture The UK is said to be a huge tea consumer, with its tea-time and Earl Grey, but coffee shops managed to reverse the tendency. Nowadays English people drink coffee as well as tea. Coffee shops are trying to encourage this in countries like China or India. 5) Technological forces I. Starbucks - Starbucks followed the advances in technology offering new payment methods Starbucks installed a system of prepaid cards, The Starbucks Card, which allows the customers to pay their drink without cash. Cards are accepted in all the US stores and in almost all the Starbucks stores in Australia, the UK and Hong Kong. ...read more.


2) Psychographic o Lifestyle: Customers, who tend to have an expensive style, want the best brand. There are different kinds of people going to coffee shops: people who work and have no time to have breakfast, people who just want to have a good time in an enjoyable place, thus people who just like the coffee shops environment and the choice and variety of flavours of coffee and who move with the times. o Personality: people who like to have a social life. 3) Profile o Demographic: Coffee shops succeeded to establish themselves as something which cannot be ignored. o Socio-economic: Coffee shops are used by those in the A, B and C1 socio-economic categories and these are also the groups most likely to have a positive attitude toward coffee shops o Geographic: Starbucks is the leading brand in the US market and Costa Coffee is the leading brand in the UK market. VI. CONCLUSION Starbucks and Costa Coffee are two coffee brands which success rest on a firm foundation. They have a lot of common characteristics although they are not implanted in the same geographic areas and if at first, they were based in countries with different cultures. In order to develop themselves and have a world-wide thinking, they had to put aside their specificities. As many external elements can encourage firms to change their behaviours, they have to be aware and responsive of their surrounded world. These elements are important if the firms wants to keep their market shares and do not lose it in favour of the competition. For these two well-ranked and developed brands it is hard to find new innovation, but it is even harder to remain a brand leading company. The kind of people they target is widespread which means they cover a large range of customers. Their implantation is worldwide as well as their customers. Considering the ongoing economic situation, there is no way to know how this crisis will evolve in the future. A firm such as Starbucks which is mostly based in the US has to be vigilant. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Marketing section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Marketing essays

  1. The strategy of The Body Shop.

    * Well known and well respected global brand. * Franchising has enabled the company to grow at lower cost and lower risk. * Still has strong ethical and environmental credentials. WEAKNESSES * Mature business, with declining like-for-like sales. * Appears to lack the inspiration to re-invent itself. * Vulnerable to imitators. * Franchising reduces level of corporate control.

  2. 8 P's of Starbucks and 5 Factors that influence the service quality in Starbucks

    There is an information section in each store that provides customers a good resource for becoming more knowledgeable about the world of coffee. The company has several other initiatives to enhance the customers' experience at Starbucks retail stores. For example, Starbucks has introduced a T-Mobile Hotspot service which allows the Starbucks customer to have access to wireless internet (Wi-Fi)

  1. LVMH: Strategic Integration and Expanding Brand Dominance in Asia. We will suggest our recommendations ...

    The gross margin is reduced because of it. That implies that synergies did not reach the optimized level. We will see in the second part how to optimize synergies within LVMH. B. Optimization of synergies: The diversification strategy had an implicit effect to the Group: the synergy had to be

  2. Chapter Notes on Marketing Management by Philip Kotler 10th Edition

    Both of them work jointly. The aim is to make distributors feel for making money from the sale side rather than on the buying side. Evaluating Channel members: Producers must constantly evaluate the channels performance against such standards as sales quota attainment, avg inventory levels, customer delivery time, treatment of

  1. Tanishq a division of Titan Industries is Indias largest, most desirable and fastest growing ...

    then we can get it from home country's suppliers with very competitive price. Related and supported industry is lacking in Bangladesh. For Example, for gold jewelry there are no stones producing industry in Bangladesh. For purchasing some expensive material from abroad, the jewelry company has to go abroad.

  2. Company Background - Elken.

    Elken can do this by establishing recognition for the best employee of the month in each department. Besides that, it can also apply the same strategy to identify the best distributor of the month. And those who achieve this recognition will get incentive or redemption 100 points.

  1. Blue Nile pestel analysis. Blue Nile is a publicly traded company. The company was ...

    put into force in 2003 when participating countries began to enforce the rules. A result of this new resolution the share of illegal diamond trade in the global diamond market is now only 1% compared to 15% in the 1990s (What is the Kimberley Process?, 2002).

  2. Starbucks Complete Analysis

    Due to the launch of Starbucks VIA Ready Brew the CPG segment?s net revenue increased by approximately $22 million. 3. The global instant-coffee market is valued at $17 billion, tapping a huge market in the UK since instant coffee represents over 80% of all coffee brewed.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work