Pestle, Swot Analysis UK of Coffee Shop

Added on - 21 Feb 2021

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Introduction ToMarketing
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3Brief overview of the UK Coffee Shop Market..........................................................................3TASK 2............................................................................................................................................8TASK 3............................................................................................................................................9CONCLUSION and Recommendations........................................................................................11REFERENCES..............................................................................................................................13
INTRODUCTIONMarketing is a field of study in which management of an organisation builds relationshipwith customers and satisfying them through offering products of firm to them. In addition, it isan action or function of organisation which is performed by them so as to promoting or sellingtheir products or services in marketplace. Whereas, Market Research is an activity through whichfirm collects information about needs and preferences of customers. Chosen firm for this reportis Costa coffee which is a multinational coffee house firm along with headquarters in London.Company was founded in 1971 by Bruno and Sergio Costa. There are around 16000 coffee shopsin Coffee Market of UK which are rapidly growing with an average rate of 4% in each year. Itdefines that Costa can easily expand its market share in Coffee market. Present report willdiscuss about the overview of Coffee shop market of UK along with specific models such asSWOT, PESTLE etc. so as to identifying growth opportunities. In addition, market segmentationwill also done so that needs of customers can be identified in new market along with this, somemarketing strategies such as Marketing mix with IMC objectives strategies will also coveredunder this report.TASK 1Brief overview of the UK Coffee Shop MarketCoffee market in UK is considered as the dynamic market across the world. Coffee shopsin UK are considered as a quick service restaurant in UK. In previous years, there has been anincreasing trend is identified in number of coffee shops operating in UK. Whole UK coffeemarket is dominated by three leading multinational coffee-house chains like Costa Coffee,Starbucks, Caffe Nero. As per a customer survey report, approx. 79 percent of UK individualsdrinks coffee all seven days of the week. In which, 90 percent drinks coffee at home along withthis, there are around 5.3 million customers visits coffee shops and sandwich bars in a week fordrink coffee (Homburg, 2015). Over the previous five years, 28% of growth has been identifiedin this market. In addition, it has been identified that most of the Coffee drinkers are agedbetween 16-34 who prefers to drink quality coffee and usually go 2 or 3 days in a week fordrinking coffee in coffee-house or shops (UK Coffee shop Market Overview, 2017). Due toincreasing demand of coffee, Coffee is also serving to the customers in those stores or outletslike pub, restaurants, hotels etc. which are not a part of coffee market.
Illustration1: Coffee shops in UK marketDue to this reason, Independent stores like Costa Coffee, Starbucks are facing competition fromthese non-specialist Coffee shops. In order to overcome the considerable impact of these shops,Management of Costa have started their Costa Express. Whereas, McDonald which is amultinational fast food chain have started Mc Cafe in order to making its strong presence incoffee market of UK. According to a market survey report, Number of Coffee outlets are grewby 1215 in last 12 months which defines 5.3% of growth in UK market. In addition, this marketwill exceed 31,400 outlets along with a turnover of£13bn by 2022. 52.9% of Coffee marketshare is held by Starbucks, Costa Coffee and Caffe Nero. (UK Coffee Shop market continueswith robust growth, 2018)SWOT of CostaStrengthWeaknessesSecond Largest coffee chain across theworld.Largest Coffee chain in UK.Around 3401 stores of firm in 31Market presence of firm in a limitednationsMarketing strategies of organisation arenot efficient as compare to its rivals.
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