Service Marketing: Analyzing the Service Environment of Costa Coffee

Service Marketing

SERVICE MARKETING 1
Introduction
Service environment is used as criteria in evaluating services by consumers. The company
provide the goods and services to the consumers which are evaluated by the consumers
(Chand, 2018). Each and every company wants to expand its business at the international
level by providing the effective services. In this report, Costa Coffee has been taken into
consideration to analyse its services in the market.
Good and Services
Good is an object which the consumer can touch or hold but service is an action that a person
does for someone else. It has been seen that the good is a tangible objects and service is an
action which can satisfy the wants of consumers.
Background of the company
Costa Coffee is a British multinational coffeehouse company which established in London.
The company has large number of experience as it was founded in 1971. It offers the roasted
coffee to caterers and specialist Italian coffee shops. It is the largest coffeehouse chain in the
UK and the second largest chain in the World. The company earns the high profit in the terms
of billions £1.167 billion (Costa, 2019a). In this report, the discussion is made on the service
environment of Costa Coffee. Service environment of Costa Coffee will be analysed with the
models. The service will be measured with the spatial layout and functionality of the café.
The result of experiment will also be discussed in this report. At the end of the report, the
recommendations will be given in order to satisfy the consumer.
Background to the market

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Cotsa coffee is operating under the Coffee shop industry. As per the statistic, it has been seen
that the UK is leading coffee shop chains in the United Kingdom. Coffee shops are also
competing with the restaurants in the limited services. It is evaluated that the consumers
drank about the 157.38 million 60 Kg bags of coffee in a day around the globe. Costa is
ranked at the highest number in UK with the 212 outlets.
Costa Coffee, McDonalds, Dunkin Donuts and Café Coffee Day are the main competitors of
the industry. The different flavours are demanded by the consumer as per the changing
behaviour of consumer. It is observed that the 70 percent of consumers drink at least two
cups of coffee in a day which reflects the high demand of consumer (Statista, 2018).

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Vision and Mission
The mission of the company is to save the world from mediocre coffee and the vision
statement of the company is to be recognised as the world largest coffee shop chain. The
company provides the unbeatable coffee experience to the customer in order to achieve the
success in the market. The company promise their customer to make the experience better for
them. The company take the competitive advantage by providing the quality of experience to
the consumer (Chase, 2006).
7 Ps of services
Product
Costa Coffee is the most popular café in the context of supply chain at the global stage. The
company have many products such as creamy latte, velvety flat white, classic Americano,
rich cortado, intense espresso and frothy cappuccino (Costa, 2019). It states that the company
provides the variety of products to the consumer as per the taste of consumer. It also offers
the supplementary products to the consumer in order to attract the large number of consumers
towards its services. Product is a main component of the company which helps to increase the
brand value of the product. The market strategy framed by the organization is based on the
demand of the consumer. It believes in giving the high quality of services to the consumer in
order to satisfy their demand.
Promotion

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(Source: Costa, 2019)
It has been seen that the Cost Coffee is a premium brand which does not relies on
advertisements on TV, print media and on many other platforms. It is observed that the
company has high experience in their business which states that it believes in mouth publicity
from its customer. The company not only provide the services to their customer but provide
the good experience. The company provides the sample at the time of launching the new
product in the market. It also focuses on the digital media as per the developing technology to
promote its campaigns and connect with the customers. The company also organised the
loyalty programs where it provides the discount to its customer on products and earns points
on purchase of any products of costa coffee (Costa, 2019). The famous campaign of costa
coffee is “Shake Up Summer” which promotes the cold coffee products of the company.
Price
Costa Coffee has the diverse price which influences the competitors to invest it. The
company offers the premium range to the consumer due to the high value of the brand in the
market. The company believes that the first preference of the customer is good quality and
the second preference is price. The company provides the two beverages to the consumers in
small and large size. The prices of the consumer are varying on the quantity offers by the

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company. The prices offer by the company is directly offers by the different product such as
vending machine. The company sell the vending machine on the higher prices which is
highly competitive with the other competitors such as Starbucks, café coffee day.
Place
It has been seen that the company is spread in 3300 outlets and spread over 31 countries. It
also operates in 2100 restaurants of UK. The company is growing rapidly, it also enter the
Indian market and expand its business at the large area. The company modify its product as
per the taste and demand of the country that is why it is growing continuously. The company