Marketing Mix for Costa Coffee

This presentation discusses the marketing mix for Costa Coffee, focusing on the product, price, promotion, and distribution strategies. It also explores the need to improve the Intense Espresso coffee to attract more customers. The target market is mainly college students, and the main competitors are Caffé Nero and Starbucks. The presentation concludes with a recommended marketing mix for Costa Coffee.

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(PART 1)

Table of Content
 Introduction
 Product
 Customer Need
 Company
 Distribution
 Price
 Marketing Communications
 Your Recommended Marketing Mix
 References

INTRODUCTION
Marketing refers to action of promoting
as well as selling service or products
consisting advertising and market
research. It is management process
by which products move from
concept to consumer.

Product
It refers to system that is
available for use of
customers or it is anything
that can be provided to
market in order to fulfil
needs of consumers in an
effective manner.

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Intense Espresso is dark and the
heartbeat of Costa coffee. This
coffee is an elegant short of
Oppressor with better aroma of
the warm roast.

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 The attribute of this company is that it provides dark coffee. From this
reason, it seems bitter to people.
 There is a need to make improvement in this coffee by adding sugar and
changing the coffee beans from medium-dark to light coffee beans that
consist with low caffeine.

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Its importance is that there are a range
of people in United Kingdom, that
do not like strong coffee, this
change will directly attract people
and change them into customers of
Costa Coffee.

Customer Need
Under this, need is desire that can
be cause a consumer to
purchase product. It is a
primary responsibility of
company to focus on needs
of customer and also try to
fulfil them in an effective
manner.

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Through this, large number of
consumers will be attracted. Under
this, geo- demographic segmentation
have been used because it is based
on the age, gender, income level,
occupation etc.

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The target market of this company is
youngsters which are mainly the
college students. The market trends are
consumption, cost of coffee etc. This
company provide its coffee on
reasonable cost for enhancing its
growth rate.

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The main competitors of Costa
Coffee are Caffé Nero, Starbucks.
These all are positioned on the
basis of their size, target market
and revenue.

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 The size of Starbucks company is large and its target market are premium
customer segment and also the revenue of this company is £1712.21 crore.
 On the other hand, size of Caffé Nero, is also large and its target market
are middle income Italian Londoners or tourists. Revenue of this company
is £200 million.

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The market size of Costa coffee
company is larger. The target
market of this company are
youngster and its revenue is
£1.14239 crore.

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 The target market should buy the
improved Intense Espresso coffee
because it is suitable for those
people which do not like strong
coffee and it will solve their
problem and they like the
improved coffee most.

Company
Costa coffee is emerged as leading
coffee chain in world with more than
3000 coffee shops. It has biggest
product portfolio in beverage segment
that is helping firm to compete with
its strong competitors.

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To make improvement in existing
product help in bring opportunity
because it will attract those people
which like light coffee as comparison
to strong. Through this, sales will be
enhanced and more revenue will be
generated.

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To make improvement in existing product help in bring opportunity because it
will attract those people which like light coffee as comparison to strong.
Through this, sales will be enhanced and more revenue will be generated.

Distribution
 Costa coffee will
distribute its Intense
Espresso coffee on its
outlets.
 This distribution plan is
relevant for the target
market. With the help of
advertisement, it can
inform its target market.

Price
 It is a major concern for the company and also customers. Under this,
consumers only attract towards the high quality of services and products.
 The objective behind set cost of coffee is that it can target the middle
and high income level people and also those will like light coffee.

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The cost in which Costa Coffee will
provide its improved Intense Espresso
coffee is £1.20. The target audience
will see value in proposed pricing
structure through seeing the
improvement in coffee with better
quality.

Marketing Communications
 Promotion refers to kind of marketing communication that is mainly used
to inform target audience about the relative merits of service, brand and
product.
 With the help of promotion, company aware to consumers about the new
features or innovation included in the existing product or develop new in a
better manner.

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In context to this, main aim of
promotion is to enhance awareness,
develop interest, brand loyalty and
generate sales. For promoting
products, Costa coffee will use the
digital media and it is an effective
way to connect with customers.

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The strategy related to make change in existing coffee product will help in
attain target market and it will be helpful in increase positioning strategy
by develop products on the basis of needs of consumers and fulfil their
requirements.

Your Recommended Marketing Mix
Marketing mix is a main concept of market
that consists product, price, place and
promotion.
 Product
 Price
 Promotional Strategy
 Distribution strategy

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Product- Under this, main product
of Cost Coffee company is
coffee and it provides different
varieties of products.

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 In addition to this, product that need to be improved is Intense Espresso
coffee because it consists strong coffee beans with people do not like the
most, so it will include light- coffee with sugar.
 This factor of marketing mix is based on the liking and need of
customers.

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Price
The pricing strategy of
Costa coffee is
Premium pricing
strategy because of its
high quality.

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Promotional Strategy
 The promotional strategy of Costa Coffee consists Digital media
because through this it can interact with large number of people.
 It also uses BTL promotions such as on advertisement on the buses as
well as outdoor media.

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Distribution strategy- Costa
coffee has better distribution
channels because it was selling
its coffee on its restaurants.

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 Mainly, its outlets can be found in the
airport, shopping malls etc.
 On the other hand, its has more than
30000 stores in around 31 countries.

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The pricing theory that Costa Coffee uses is
premium pricing strategy. It refers to practice
of keeping cost of service or product high in
addition to encourage the favourable
perceptions between consumers. It is related
to charge high price as comparison to its
competitors.

References
Blackman, A. and Naranjo, M. A., 2012. Does eco-certification have
environmental benefits? Organic coffee in Costa Rica. Ecological
Economics. 83. pp.58-66.
Wollni, M. and Brümmer, B., 2012. Productive efficiency of specialty and
conventional coffee farmers in Costa Rica: Accounting for technological
heterogeneity and self-selection. Food Policy. 37(1). pp.67-76.

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