International Marketing of Costa Coffee

This report discusses the scope and key concepts of international marketing for Costa Coffee. It explores the rationale for entering the international market and the selection process. It also analyzes different marketing strategies and their advantages and disadvantages. Additionally, it examines the key arguments and debates in global and local markets.

UNIT 40: INTERNATIONAL
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1. Scope and key concept international marketing of costa coffee............................................3
P2. Rationale for international market of costa coffee-...............................................................4
P3. The key selection and criteria process that use for consideration in international market....5
P4. Different marketing strategies along with advantages and disadvantages............................6
P5. Key arguments and debate in global or local.........................................................................7
P6. Distribution approaches in variety of international contexts.................................................8
P7. The various international marketing approaches that organization can adopt......................9
P8. Home and international orientation and ways to access competition..................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
International marketing is utilization of marketing generality operating in more than one
country, while some companies foreign or national boarders. Costa coffee is British chain which
has subsidiary to Coca-Cola company as supplying company roasted coffee and special Italian
coffee shops. There are various types of products such as hot drinks, cold drinks, cakes, Savoury
snacks and so on (Morgan, Feng and Whitler, 2018). This report explain about the key and scope
of international market along with rationale for an organization that want various routes in
adopting marketing. This also evaluate the criteria and selection process that could be use in
making easy for international market furthermore the different marketing strategies including
their pros and cons. Also explain the key arguments and key debates for local and international
market moreover investigating about marketing mix approaches. Report more analyze the
various international marketing approaches plus home as well global orientation with ways to
assess competitors outlining.
MAIN BODY
P1. Scope and key concept international marketing of costa coffee
International marketing not only increase efficiency but also allow participation of
multiple countries for economic development of a company. It increases investment on global
level and encourage opportunities for foreign direct investment. Costa coffee trade
internationally to improve its branding and economic growth. Costa coffee invest in major
popular and developed countries to ensure its productivity. There are three approaches that costa
coffee remain in top brands of company-
Ethnocentrism : Ethnocentrism is one's way of following its own traditional culture. Like costa
coffee follows same concept of old roasted bean Italian coffee all over the world. Costa coffee
has the same logo and store organization to attract customers (Öztopcu, 2017). As many years
has passed it still sells same coffee procedure to retain its old taste. This is the main reason for its
popularity and branding of company internationally.

Geocentrism : Geocentrism is adapting new changes according to new country. Costa coffee has
developed its change in taste by providing little change in its process of preparing coffee
according to demand of people.
Regio-centrism: Regio-centrism is making group of countries to sell its product according to
one's country's demand. Like costa coffee is that it serves its beverages according to demand of
people (Perraton, 2019). It makes a group of countries that which of the group's franchise will be
served which type of drink, it is according to demand of people country-wise.
Strategies for international marketing of costa coffee- Costa coffee has strategy of opening
stores firstly in developed countries as people of it gets attracted by its taste and setup of store
(Alpizar and et.al., 2019). Costa coffee's targeting strategies are to provide coffee and beverages
according to its geographic conditions and demand of individual country.
Adaptations of costa coffee-
Price and brand: Pricing is a standard base on which company keeps its product price. And
branding is advertisement of its product and logo. The pricing strategy of costa coffee is
competitive to other coffee brands and brand logo appears on every packaging of product. This
adaptations help costa coffee to ensure its branding and advertising among people to make it
popular and generate revenue out of it.
Standardized element: Standardization element is retaining and remaining of old and traditional
culture of one's company product that how it is prepared from years. Like Costa coffee has this
its old rich Italian taste which is its old process of preparation of coffee. This helps costa coffee
to retain its old customers and branding.
P2. Rationale for international market of costa coffee-
Rationale of international market is to assist and promote cultural and social exchange
among the nations and development of industrial and economic growth of international market.

Rationale for international market helps Costa coffee to develop itself as an international coffee
brand. It also promotes itself on international market. It helps in getting diversified income
growth by opening its franchise in different countries (Ushchapovska, 2017). Rationale on
international market helps in generating revenue. Now in this era of internet and online shopping
it helps customers to get home delivery of costa coffee to enjoy at home this help in generating
more overall revenue.
Various Routes to international market: There are various routes to international market
Direct Export: Direct export is selling goods or services directly to customers in an international
market. Like costa coffee sells its products directly to customers (Rundh, 2003). Thus
intermediator do not have any advantage to access to its total revenue and profit.
Licensing: licensing is a legal process of getting proof licence to open a store or company. Costa
coffee has store has licence for each store that are running internationally. Licensing helps
company to have access to its original brand cannot be copied and protect it from fraud activity
Franchising: Franchising is opening of brand oriented store in another country. Costa coffee has
many franchise all over world. Franchise of costa coffee helps itself by free branding all over
world. Franchising helps in generating more revenue and profit.
Manufacturing abroad: Manufacturing abroad is process of manufacturing a product in other
country. It requires legal licence and permission of government to open industry. Costa coffee's
roaster is biggest roaster situated in Europe which manufacture tonnes of coffee in a year. This
helps coffee to manufacture at one place so that its processed coffee export to its stores.
Challenges and Opportunities of international market
Challenges and opportunities that international market are facing such as branding
awareness must be their among products. it means that customer in local market have more trust
on their products and services which they are using in their daily life. it is might be very difficult
for them to make their trust on international market and could make their products must
effective. that cod be big challenges for international market. opportunities could be in starting

business online can be one of the best things for their developing business more and more. One
can be competition as company is facing more and more challenges in emerging market. So for
that organization need to have their more focused on innovation it could help in reducing costs as
well increased benefits to building customer.
P3. The key selection and criteria process that use for consideration in international market
Competitive analysis of Costa coffee have to face many challenges and barrier to entry or
exit their business along with infrastructure and branding costs. This means that could help the
company for being more developed as well set up business in various countries, if business is
unable to attract more customer that could have to pay losses for franchising. Moreover, coffee
in international market is till more developed with lots of competition in local and international.
The average revenue of Costa as per customer is might be less than their competitors (Jones and
Sims, 2019). Marketing analysis of company is growing more than 5% over the nations and in
other international market has big potential in companies for the industry.
Costa coffee uses the different channels for distributing their products to other countries
locally or nationally including grocery channels, direct customer marketing and food services
companies. Government culture play role in developing their business while by taking meetings,
supporting alternative industry as well advisers. The council have the highest authority for an
organization and composed their representatives for each member Govt. local culture for Costa
coffee being more developed and tries to set their more business some other established
countries. Coffee culture nowadays are trending along with social behaviours of customer
through how much they are attracted as well they do prefer enough coffee for making them
satisfying. Market diversification of Costa coffee is one of diversified with Ansoff matrix (Chen,
Saarenketo and Puumalainen, 2018). These strategies might be help them to make their grow
sales while by product development, marketing penetration through which they can have more
sales while by selling their business expansion in many other countries.
P4. Different marketing strategies along with advantages and disadvantages
Exporting could help Costa coffee for taking entry in local or international market with
having some strategies. Exporting means producing goods at one country and selling them to

some other country (Cateora And et.al., 2020). With export sales and production company have
more benefits in achieving economics sales as well costs over all across the countries.
Advantages:
Exporting help company in having more experience and economies in their specific
countries. This reduces the risks with rate of return sales as per other modes. Costs coffee
business exported their products and services at time when they have competitive advantage. It
means that in providing the best products and services company only have profitability and
natural ability in producing due to their climate geographical location.
Disadvantages:
While keeping more focused on exporting that can caused loss to home market and
existing customer. High price of transport can also have huge loss in business as well other
barriers can be caused by uneconomical or risks.
The simply acquisition of Costa coffee with Coca-cola it is one of the fastest growing in
beverages industry category of Coffee (Zeitoun, 2019). Coca-cola just wants to burst their coffee
full sense strength and that could be decision of Costs coffee. Advantages In having acquisition
with other companies it provides continues for business while by offering them services and also
allow sufficient methods in obtaining their assets for company. Acquisition in business could
help in reducing training costs as well time saving for organization.
Disadvantages
Acquisition in Costa coffee can create their clashes in following culture in globally and
local market. It can also become more distraction and some times create confusion at workplace.
Franchising is based on marketing concept by Costa coffee in expanding their business
strategies along with knowing more about their branded products and services (Samiee and
Chirapanda, 2019). Brand awareness means new owners do not spend many resources and time
on logo for gaining their brand awareness in product and services. Training and support must be
available at Costa coffee stores globally that could be another advantage of franchising.
Advantages:
Expansion be faster provide sales and labour as well franchising are responsible for
company in making them success (Asseraf, Lages and Shoham, 2019). Growing business can be
truing profits rather than employees.
Disadvantages:

Franchising could not manage their employee as they have some different goals and
objectives. While in selecting wrong franchising can also lead to break down reputation and
become risky for committed business.
Costa coffee in developing their business to international or local they could easily take
the help of acquisition through which company can easily have much money. Organization can
have more customer in acquisition with Coca-cola company and variety of products such as hot
drinks, cold drinks and snacks in attractive their customer.
Sourcing means a type of agreements in which one company hire other company that
might be responsible for exiting activity or planning and should be done internally. Costa coffee
this activity could be happen sometimes while by involving employee transferring or assets from
one store to another.
Advantage:
Sourcing function includes the both domestic and foreign contracting. promote more
growth and helps in developing internal staff of company. Also support in maintaining
operational controlling business data.
Disadvantage:
The biggest limitations can be losing their sensitive data and lack of confidently and that
is most important to keep checking place that avoid the data.
P5. Key arguments and debate in global or local
Local market help Costa coffee planning the best marketing strategies for their customer
as well their local economies in which they get more benefits. Targeting more customer in
locally making potential physical stores and developed more coffee stores. Locally market have
less risk while they need to follow less political and government rules. On the other hand,
international market can work through online stores, special goods are all prime business that
could be important benefits for company. Growing with connecting world, international market
do not need limited business by occupying international market in the same geographical
location. Internationally market have high in making their business. international market have to
follow many rules and regulation due to having their business operating in some else countries.
most important to focused on political as Brexit plays important in foreign countries.

Local marketing is being cheaper along with having traditional standards. Local business
give specific messages to their customer furthermore generic tag lines (Agwu and Onwuegbuzie,
2018). Local marketing is much more handling business with while proper manner moreover go
through using digital things. On other hand, in expanding more products and services of coffee
globally it increases the size as well amount of customer to reaching out their products.
International market targeted people with large number of wider area through which Costa coffee
can have enough employee in various stores and countries.
International market too many resources are available so that business must be looking
for globally developments along with making strategies. Costa coffee thinks more about their
culture in which they can get many benefits (Özoğlu and Topal, 2020). Whereas, local market
provide some different opportunities to stay with their customer. In local market consumer first
read out their views before supporting them in local market. Costa coffee offers business
development in local market for earning sufficient amount of profits.
In starting business globally much capital required and risk for starting their business
with online. Technology could be used as much advance so that could make their company more
developed and well in manner for achieving their goals. On the other hand, starting business
local market company needs less capital in which they can easily make changes in policies and
do not required much advance technology for communicating their customer.
P6. Distribution approaches in variety of international contexts
When developing goods and services in international market as they have to be focused
in carrying out their business activities.
Products:
Marketing concepts says about selling more products can lead to meet their needs. In
international market it required for involving in making various number of factors while by
including culture, religion, levels of personal, buying habits and some disposable income. Costa
coffee company will have to adopt marketing mix strategies for looking out local people need
and wants (Fadillah, 2019). Costa coffee plays a important role in developing them for local and
international market, their coffee adopting the culture of local needs. Like India people follow
coffee culture for hot coffee as more people in India prefer hot drinks which satisfied them and
in Australia coffee culture is something different such as with coffee they prefer snacks and

beverage while having cold coffee. The right approaches of an organization will depend more on
their products and strength on their brands images.
Promotion:
Costa coffee targeted market for the different variety of products in coffee. They have
main targeted to young age people of upper and middle class who always lives with soft drinks.
Along with this advertising agency have decided to develop more customer trust and work show
more to stay in market. 360 campaigns strategies must be used such as billboards, radio, ads,
newspaper and many other social media platforms. It means the levels of media availability and
development could help Costa coffee in making their business more well-developed with various
promotional strategies.
Price:
Pricing in international market is more complex tasks for developing business. Costa
coffee can easily consider some general factors such as the costs of transport, personal disposal
income of targeted market and currencies that they want to pay (Bivand and Wong, 2018). In
globally business furthermore challenges are being there in which company can make their more
customer in prices as well purchasing their products around the world. This might also increase
their level of competition and have some pressure over their pricing strategies. As globally
competitors have low prices of working costs. The products are offered by Costa coffee priced at
premium because of having its high quality and brand value. This strategies mainly used in
America, India or Germany.
Place:
The place is all about the distributing products and services to their customer at the right
time and right place. Generally distribution in marketing of India or some other countries
probably involves their manufacturer to wholesalers and then to retailer in this process their
products play important role for making their business developed and growth in their economic
crisis.
P7. The various international marketing approaches that organization can adopt
Costa coffee need to adopt their international marketing approaches such as inbound
marketing in which they have to keep main focused on quality of products and services for
making their customer satisfaction. Outbound marketing is about traditional marketing methods

including radio, TV, prints ads and email lists in which they can sell their products to various
international market. Business to business strategies can be easily adopted in coffee culture for
having their best in every market (Erlina and Hermawan, 2021). For example in Starbucks
company usually followed business to business strategies and inbound strategies for making their
business developed and satisfying their more customer from various countries. Centralized
means single responsibilities and managing their business activities along with media structure
should be strong while taking example of Mc Donald's they do not required to follow the media
structure as they have make their page on social media platforms and developed their more food
stores. Recommendation can be Costa coffee could adopt business to business strategies in which
company have enough segments in making their market position and plays virtual role for
organization.
P8. Home and international orientation and ways to access competition
Domestic marketing means to carrying an activity with having some national boundaries
and doing marketing in local with limited scope. There is one nation, one culture and on
language in operating business to local market for example, Nike and Manchester business are
mainly operative business local market. International competitive market is more strong for
starting their business they have beat many other companies which are working from last
decades. pricing strategy in international is might be more different as compare to local market.
products quality can also big competitive advantage for international market and hence they can
develop them more in marketing. International business are dealing more in their business for
understanding their customer behaviour in products, fitting them in new market along with their
goods and services. also, dealing with choosing pricing strategy or economy in which culture
they can handle their competitive.
International marketing carrying their business activity to outside the national boundaries
and operating globally business (Vadana And et.al., 2019). They required more investments
rather than local market. They have may nations, many cultures and many languages. For
example, Costa coffee and Starbucks operating their business mainly in international market with
having huge amount of capital investments. In international marketing business can have more
benefits from their strategies, increased in market size,, exporting for business and licensing for
products and services selling to other countries.

Reccomedations:
The business must try to international marketing strategy because of having their market
opportunities. The coffee products or some other business have more development its operation
to other countries for reducing their products costs. International business increased market size
of company. While working in domestic market, the company will always thinks about their
international strategies and try to expand their business across the world for earning more profits.
Economic of scale might be reduce total costs of products or other critical functions that can be
results in optimal economics scales. but sometime while operating business international that
could also cause loss if their products are not as per customer choice or not having any seasonal
products like in UK overall months only winter season is there. So for that business have to make
their products as per their customer requirements and they do not they have to pay huge amount
of loss.
CONCLUSION
From the above report it had been concluded that international marketing seems to be
more developed as compared to local market. In operating business at international as they have
to follow many rules and regulation given by government. Operational of organization can easily
give big opportunities to companies making more customer and attracting them towards their
goals and objective. Home and orientation international marketing approached play important
while being for more setting down their business.

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Online
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