Marketing Audit of Costa Coffee

Marketing
Communications
Student name:
Company: Costa Coffee
Word count: 2041

Table of Contents
MAIN BODY ..................................................................................................................................3
Introduction to market.................................................................................................................3
PESTLE analysis of Costa Coffee..............................................................................................3
Competitors analysis and Marketing Mix of Costa Coffee.........................................................5
Analysis of customers of Costa Coffee.......................................................................................6
Introduction of new product or service.......................................................................................8
CONCLUSION ...............................................................................................................................9
REFERCNCES..............................................................................................................................10

INTRODUCTION
Marketing audit is a systematic analysis, evaluation and interpretation of the business
environment. In this analysis both internal and external elements which can enhance the
marketing practices of the company are evaluated. According to the marketing audit results the
company make there plan of actions for better marketing performance and attaining objectives
effectively. Various tools like PESTLE and SWOT analysis and STP are used for conducting
marketing audit as it a very essential task for every organisation to perform. It enables
organisation to examine potential problems and explore marketing opportunities and proposing
measure to improve the marketing strategies of entity. For this report, Costa coffee is chosen to
perform various actions and market analysis. Costa coffee was founded in 1971 by Costa family,
as a wholesale operation. They use to supply roasted coffee beans to Italian coffee shops and
caterers. Company has its headquarters in Dunstable, England but serves to worldwide
customers. Mission of organisation is to save the world from consuming mediocre coffee which
is of very moderate quality. Company wants to serves the best quality of coffee to the world and
with aim Costa Coffee was developed. The unique selling point of Costa Coffee is they
customize orders of their guests on their request without charging them extra.(Alias and Othman,
2019)
MAIN BODY
Introduction to market
Market is a place in which an organisation offer its products and services in order to earn
profitability and success. By considering the costa coffee, its market is growing at a CAGR of
5.5% at the forecast period. As it is one of the favourite beverage and the major source of the
coffee for the daily routine of the people. In order to target its market is South America as it is
largest producer of coffee in the world and offer its product at world wide such as Germany,
Italy, France, Spain are the dominating coffee consumers. The current trend is used by the
company is the electric coffee jar (E-Jars) as it helps the customers in order to attract them and
helps in increasing its sales in the market. (Chitty, D'Alessandro and Gray, 2019)
PESTLE analysis of Costa Coffee
The Market Environment

Political  Tax rates in UK are rising, due to which cost of production is
increasing along with it Costa Coffee had to raise the prices of their
products too.
 High prices resulted in decreased sales for Costa Coffee as they do
not compromise in quality of coffee beans they use in preparation of
coffee and serving to their customers. Prices rise due to rise in tax
rates and other related policies. (Hassan, 2019)
Economic  Europe's economy is currently very weak and due to which both
food and non-food retailers are suffering, that includes Costa
Coffee.
 Purchasing power of public is reducing which leads to less
consumption of coffee and saving their money for other needs. This
has direct effects on the sales of Costa Coffee. (Jaya and Susanti,
2019)
Socio-cultural  The preferences of people in UK is changing and always ask for
high quality of coffee beans to be used for preparation of their order
which is a favourable factor for Costa Coffee. As the company
focuses and aim on providing best quality services and products.
 In UK, people not only drink coffee when they need it, coffee is a
part of their culture and style which is an advantage for Costa
Coffee. (Lloyd, 2019)
Technological  Costa Coffee improved their operations and introduced new
technologies in their stores with development of new and better
technology.
 They have increased the comfort and ease of people developing an
online application by which they can locate the store and surf
through the menu of Costa Coffee. (Porcu and et. al., 2019)
Environmental  Company concentrated on this factor and for which they have
introduced environment friendly packages.
 The beans they use are roasted by themselves in London, where they
have strict quality control systems which are developed according to