Costa Coffee's Marketing Mix Strategy in the UK

Marketing
Portfolio

CONTENTS
INTRODUCTION......................................................................................................................1
MARKETING MIX ELEMENTS FOR REINFORCING POSITIONING IN UK..................1
Overview of Costa Coffee......................................................................................................1
Current marketing situation....................................................................................................1
Marketing mix elements used by the company......................................................................2
STRATEGIC DECISIONS AND RELEVANT THEORIES IN MARKETING EFFORTS. . .4
EFFECTIVENESS OF MARKETING EFFORTS OF COSTA COFFEE................................7
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................10

TABLE OF FIGURES
Figure 1: Ansoff Matrix.............................................................................................................5
Figure 2: BCG Matrix................................................................................................................6
Figure 3: Overall NPS of Costa Coffee......................................................................................8

INTRODUCTION
Even though, there are still glimpses of the global recession at present, the branded
coffee market expanded to a certain degree. The main reason behind this is customers
consuming coffee slightly reduce their spending on coffee which has optimistically
influenced the coffee industry of UK. Because of the recent pandemic, different companies
have faced issues regarding reinforcing their position in the market and so as the Costa
(Skallerud and Gronhaug, 2017). However, with the successful implementation of marketing
strategies and marketing efforts, the company was been in a position to reinforce their
position in the markets of United Kingdom. Considering this, the main aim of the current
research report is to analyse the manners in which the company has utilized different
elements of marketing mix for maintaining their position in the recent years and will throw
light on the strategic decisions and relevant theories in their marketing efforts. The finals
section of the report will going to analyse the effectiveness of Costa Coffee’s marketing
efforts.
MARKETING MIX ELEMENTS FOR REINFORCING POSITIONING
IN UK
Overview of Costa Coffee
Speaking in volume in relation with the Costa coffee, it is one of the biggest coffee
chain of UK which has its headquartered in Dunstable. After Starbucks, Costa Coffee is the
largest chain across the world. The company is completely owned by Whitbread. Further, it is
only one coffee shop among the other competing firms operating in the markets of UK which
is offering handmade coffee to their clients. The company has its specialization in the Italian
coffee and thus, have acquired round 37.6 percent of share in the market. Nonetheless, due to
the political situations and issues in the global business environment, recent pandemic and
rising level of competition both globally and locally, the company is coming across with
numerous challenges with the passage of time (Costa Coffee, 2022).
Current marketing situation
Because of the changing political scenario of UK in the recent years, there has been
wide number of modifications being done in the policies and regulations. Further, taxes have
increased which has influenced the overall operations of the company. Other than this, people
today becoming more and more concerned and aware in regards with the environment which
has forced Costa Coffee to consider the impacts of their operations on the environment. In
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