MOD003507: Costa Coffee Marketing Mix, Strategic Decisions & Analysis

This report provides a comprehensive analysis of Costa Coffee's marketing strategies, focusing on the marketing mix (7Ps), strategic decisions, and the effectiveness of these efforts in recent years. It examines how Costa Coffee utilizes its product offerings, pricing strategies, distribution channels, promotional activities, people management, processes, and physical evidence to create a strong brand position. The report also delves into the strategic decisions made by Costa Coffee, such as target market selection, product and service offerings, pricing strategies, and positioning tactics, relating them to relevant marketing theories. Furthermore, it evaluates the effectiveness of Costa Coffee's marketing efforts in maintaining and enhancing its brand image, particularly in the face of competition and challenges like the pandemic. The analysis considers how Costa Coffee leverages its marketing strategies to attract and retain customers, as well as to recruit and retain talented staff members, contributing to the company's overall success in the global coffee market. Desklib provides access to similar solved assignments and study tools for students.

MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Marketing mix of Costa and the reinforcement regarding creating position within the last three
years............................................................................................................................................1
Reflecting Strategic decision and relevant taught theories and in its marketing efforts:............4
Effectiveness of marketing efforts:.............................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing consists of certain actions undertaken by any company in order to promote the
buying and selling behaviour regarding the product and services offered by the establishment.
This involves advertising, selling and delivering goods and services to customers as well as
other business entities (Al-Omari and et.al., 2018). It basically illustrates the procedure regard to
planning, and executing conception, promotion, pricing and distribution of ideas along with
services that highly able to provide satisfaction of individual people or the whole organization.
Each and every business needs to be successfully marketed their offered services.
This report will highlight the concept by choosing Costa as a company which is a British
coffee chain headquartered in Dunstable. The study will elaborate the aspects of marketing with
the help of sharing information with the help of marketing mix, their reinforcement in order to
position the brand within last three years, strategic decisions, theories, marketing efforts along
with effectiveness of their marketing efforts.
MAIN BODY
Marketing mix of Costa and the reinforcement regarding creating position within the last three
years
Marketing strategies adopt by costa coffee evaluate the brand with the help of utilizing
marketing mix framework which covers all the significant elements. There are numerous
marketing strategies such as product, pricing approach, promotion, innovation into products, etc.
which help the Costa brand in order to achieve the heights of success from past many years. The
strategy assist the brand to position itself in front of their other competitors that are also
available within the market space which also enables them to achieve their business objectives
and goals (Kartawinata and et.al., 2020). 7P's of marketing mix includes:
 Product: Costa coffee is considered as one of the most famous coffee chains available
all across the world. The company offers coffee, beverages and snacks as their main
product. Costa Coffee is owned by Coca Cola firm from Whitebread company in 2019.
There are varied flavours of coffee has been offered by the company to their consumers.
The famous products of the establishment are Latte, Americano, Expresso, Lemonade,
Mocha cream Frostino, etc. They also sell their products to other business entities and
caterers for instance the firm sell their vending machines to corporate offices and
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colleges under the brand name of Costa Express. The product that is being offered by the
firm is the main driver of company''s business strategy as they utilize pull strategy to
collect more consumers and become famous among them as well. Costa highly believe in
providing precious moments to their consumers by offering their main item i.e. coffee.
 Price: The Costa Coffee offers diversified price offerings to their customers, although
they are influenced by the competition and thus they offer slightly premium range to
their buyers. The products that are being offered by them are of premium range because
of their brand value and high quality (Do and Vu, 2020. According to the company, price
is the second component that grabbed attention while appropriate quality has the high
power to attract more and more consumers towards the business. They provide goods and
services at competitive prices as compared to their competitors such as Starbucks, CCD.
The prices of the beverages also depend highly upon the supplement that are being added
within them. However, during pandemic situation, the company highly impacted and
thus reduces the sales volume which also lead towards various stores were shut down.
 Place: The company operates in more than 3000 stores in more than 30 countries along
within various restaurants as well (González and et.al., 2019). Costa Coffee targets upper
middle class people and rich consumers and mainly found at shopping malls, airports,
etc. They prepare their menu according to the requirements of the country in which they
operate in order to gain more profits and build large customer base.
 Promotion: the advertising and promotional strategies that are being adopt by the Costa
Coffee are highly considerable. Although, it is a premium brand and does not require
many advertisements. Hence, they believe in becoming famous with word of mouth
strategy from their consumers, and they are highly capable to provide good experiences
as well. In addition to that, company focuses towards digital media to promote their
campaigns and connect with the customers. The company also runs loyalty program
which allows their frequent customers to get considerable discounts over products along
with earn reward points over purchase.
 People: Costa coffee is a firm which focuses highly over their employees as well as
consumers. There are more than 25000 employees are working within the firm, and they
provide training to their employees to follow highly professional approach along with
polite behaviour while serving to their guests (Efanny and et.al., 2018). They treat their
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buyers with high regards and the majority part of experiences of people are based upon
the behaviour of people who are serving to them. The employees are highly able to
communicate well with consumers along with interact in regional languages as well. The
employees all across the world wear similar dress code this shows the significance of
their strategies in the mind of their employees.
 Process: Costa Coffee express their standard procedure just like other coffee offerers in
the similar segment. Their procedure are highly efficient enough to provide their
customers extreme satisfied services. The staff members take orders from their guests
and make sure that the items asked by their guests serve to them within minimum time
duration along with maintaining high quality as well. The final procedure refers to
paying bills for the offered item. The establishment uses wide range of mechanism in
order to process product fees from their customers by offering them various payment
options such as online payment, cash payment, credit or debit card facility, etc. (Issock,
Mpinganjira and Roberts-Lombard, 2021) Most of the outlets of Costa Coffee are
provided self-service counters in order to serve services to their users.
 Physical evidence: The outlets and shops of Costa Coffee are considered as the physical
presence of the company. The firm operates in various countries and offer their services
to diversified people and varied locations. Although, most of the outlets are available
within the United Kingdom. The easy access to the outlets acts as a success factor for the
firm in order to fulfil the requirements and demands of their users. In order to become
more famous, the company sells some of its owned branded products within the market
place which includes branded cups with having name of Costa Coffee over the products
to their users. In such manner, they fulfil the requirements of their buyers in every
manner.
The mission of the company is to offer and serve their customers into true Italian style.
From past three years, Costa Coffee tries their maximum to focus towards offering appropriate
quality to their users. With the help of their unique products, pricing strategies, availability at
diversified places and approach towards people help them to regain their market share after the
pandemic situation in which the Costa also faced a lot of sales revenue losses (Wang, 2020). The
marketing mix also help in effectual recruitment and retention strategies of highly motivated and
talented staff members who are extremely capable of delivering the best services to the company
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consumers. In order to achieve this, the company adopts great reward system along with training
and development programs. Their pricing structure also enables them to recreate their image and
position from last three years. They offer outstanding quality products at discerning rates.
Moreover, in context of people the Costa Coffee targets all age people and caters dissimilar
consumer preferences (Moayeri, Mahmoudi and Dabaghi, 2018). Thus, with the help of all such
activities, Costa Coffee makes themselves well-known within the United Kingdom. However,
there are numerous potential available within the UK market through which the company can
take more advantages in their near future terms. The company can also able to take advantages
from serving more Coffee products that gradually replaces the traditional goods. The Costa can
also try to fill the market gap that has been generated because of international students. Hence,
with the help of focusing towards their marketing strategies, the company is able to regain and
sustain their brand image within the market space all across the world.
Reflecting Strategic decision and relevant taught theories and in its marketing efforts:
Strategic decision play vital role when it comes to marketing, this simply means
company will going to take those decision that provide direction to company and make
marketing more effective. It is very clear that every business organization depend upon
marketing efforts because this is one of the most important pillar that provide support to the
company (Morgan and et.al., 20190). Business perform market analysis to understand their
target market and craft effective strategic direction, Costa Coffee is one of those company to
craft effective strategic decision and make marketing more effective. There are certain strategic
direction taken by Costa Coffee, these are:
Right target market: right target market is very important for every business organization, this
allow company to select right market where they will find those audience who suit best for the
product and service offered by the company. It is very clear that every business organization
have set of right market where they find those customer who are looking for exact same product,
setting right target market is one of the most effective strategic direction. Costa Coffee focus on
right market and boost sales of product and service with right strategies, this company those
consumer who is best suitable for the company (Kingsnorth, 2019). Selecting right market is
crucial strategic decision in marketing, wrong target market will simply waste money, time and
affords.
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Product and service to offer: when looking at strategic decision in marketing, product and
service offered in the market become essential. Company need to decide which product is
suitable for marketing and promotion process, it is very clear that company will not select those
product who’s market value is low and have less ability to attract customer. Efforts of marketing
are only worth if company know which product will become game changer and which service
will rule over industry. Marketing efforts need strategic decision that increase effectiveness and
boost company’s sales, Costa Coffee offer those product in the market that can capture greater
market share and have ability to attract consumer. Product and service become key pillar of
marketing, company who focus on strategic decision, consider betterment in product and service
they offer because Costa Coffee believe in first impression their product will have on consumer.
Pricing strategy: pricing become essential in marketing, company take strategic decision in
pricing process. Almost every business organization focus on those market and customer who’s
spending capacity match with pricing of the product, this simply means company will use one
pricing strategy for example; skimming pricing policy. Selecting one pricing strategy is crucial
for the company, every product and service offered by the company in market have strong
pricing policy that allow company to cover cost. Setting pricing strategy is one of the most
important part of marketing efforts, Costa Coffee is one those company who set their pricing
according to marketing efforts and value of the product.
Positioning: position is important strategic decision which means company try to position their
product or service in relation with market demand and mind of the consumer. Position brand in
highly competitive market is crucial for business, it is very clear that company’s product and
service play with mind of consumer which simply means consumer will only chose those
product which have right position or fulfil demand (Mothersbaugh and et.al., 2020). Costa
Coffee is one of those company who take strategic decision to make their marketing more
effective, this means company will consider right position of product and service to play with
minds of consumer.
Budget allocation: budget or spending is one of the most important thing for every marketing
strategies, without budget company can not perform marketing. It is completely depend upon
company to chose right method of marketing that cut cost for example; if company is choosing
offline marketing with printing leaflet, poster and brochure then cost will be high reach will be
less. Costa Coffee use online marketing method to cover cost in budget allocated by the
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company, this business organization have great brand promotion strategies and allocating
sufficient budget is another strategies decision that allow company to boost their sales. Budget
become essential part when it comes to marketing, when company focus on reaching wider area
of customer or market then budget need to be high. Low budget will limit company's
effectiveness and push them to reach limited number of audience in limited interest area, many
effective marketing strategies fail because there is no budget available (Alon and et,al., 2020).
Costa Coffee need to have sufficient budget not only to make their marketing effective but to get
competitive advantage in the market.
AIDA marketing theory:
AIDA marketing theory is one of the most effective marketing theory that allow
company to understand stage of advertising and process of promoting product and service in the
market, there are four stage of AIDA marketing which Costa Coffee can use to become stable in
the marketing, these are: Attention, Interest, Desire and Action:
Attention: attention is first stage that highlight how company build those strategies to attract
customer.
Interest: interest is second stage that highlight interest of consumer in that particular product
and their interest in buying.
Desire: desire in third stage that highlight that consumer desire to buy that product and setting
their mindset to spend on that particular product.
Action: action is last stage that highlight that customer will take action and buy the product,
these stages highlight marketing process of the company.
Effectiveness of marketing efforts:
Every company spend huge amount of budget from their surplus profit on marketing,
business need marketing to boost their sales and become leading brand in the market. Brand
awareness and product promotion become essential part where company focus on sales and
impact on sales after promotion, it is very clear that every marketing efforts or strategies need to
be monitored for analysing how effective was and how effective it will be in the future (Chaffey
and Ellis-Chadwick, 2019). Costa Coffee is one of those companies who have effective
marketing strategies, this company monitor their efforts with the help of certain methods, these
are:
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Change in sales: change in sales is one of the most effective and useful indicator that allow
company to measure or monitor effectiveness of marketing strategies, there are many companies
who analyse their sales before, during and after marketing strategies. Change is sales means
there is high demand of product that simply means company and its product are performing well
with efforts that have put in. Costa coffee can evaluate their marketing efforts with the help of
analysing change in their sales, this company need to check sales and have to keep eye on sales
that indicate that marketing efforts are effective.
Customer feedback: feedback from customer highlight how effective was marketing strategies
is, analysing impact of marketing efforts with the help of feedback is one of the best way. There
are many business organization who use this method to evaluate method, review of consumer or
reduction in consumer retention is indicator (Prathapan, Sajin Sahadevan and Zakkariya, 2018).
Costa Coffee can analysis their marketing efforts with the help of customer feedback, this will
allow them to ensure that marketing is going well and this will help them to mark those weak
area which need to be improved. Feedback allow organization to make change for example: if
customer provided feedback regarding product design then company have to change design of
their product but if feedback is related to pricing then company need to improve marketing
pricing policy to win customer in the market.
Evaluating ROI: evaluating ROI is another most effective way to analyze effectiveness of the
marketing strategies build by the company, if there is any change in return on investment then
marketing efforts are performing as marked by business (Heerde and Neslin, 2017). It is very
clear that marketing take huge budget and allow company to cut off their surplus profit, this
simply means company need to reduce cost to make ROI effective. Costa Coffee is one those
company measure effectiveness of their marketing strategies with the help of calculating cost of
each marketing campaign and profit generated by each campaign. Costa Coffee need to analyse
those campaign where cost is high and return is very low, this company need to quickly remove
those campaign and look for crafting better marketing campaign that target right customer in
right target market with sufficient budget.
Monitoring goals: monitoring goals of marketing strategies is another most powerful method to
measure marketing efforts, every business organization focus on marketing to become market
leader, they try to craft those strategies which boost company's performance and allow them to
generate surplus profit with the help of promoting product and service. In marketing process,
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company to try to set different goals for example one marketing campaign have goals to boost
brand awareness whereas another marketing campaign have goal to reach new set of customer,
each campaign have their own goals but each campaign focus on boosting sales of the product.
Costa Coffee need to monitor those goals and need to analyse where goals are achieved by
marketing campaign, or they still need improvement.
CONCLUSION
From the above report, it has been concluded that marketing enables the Costa Coffee to
understand their products and services that has been offered by them to their consumers. With
the help of appropriate marketing mix, the company is able to plan successful product offerings.
This enables them to plan, develop and execute their marketing strategies in the best possible
manner that helps them to gain their position even after pandemic situation i.e. past three years.
All this success shows in their strategic decisions and illustrate high level of effectiveness in this
competitive world where all other companies are also available who works within the similar
segment. In order to become famous, company utilizes advertisement from mouth publicity
rather than print or media promotion. Through such ways, the company is able to serve their best
to their users.
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REFERENCES
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Efanny, W. and et.al., 2018. The relationship between marketing mix and retailer-perceived
brand equity. IMP Journal.
Issock, P.B.I., Mpinganjira, M. and Roberts-Lombard, M., 2021. Investigating the relevance of
the traditional marketing mix across different stages of change: empirical evidence from
household recycling. Journal of Social Marketing.
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Medical Sciences, 26(1), pp.62-72.
González, V.J.L. and et.al., 2019. Marketing mix de servicios de valor agregado de última milla.
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Science, 47(1), pp.4-29.
Kingsnorth, S., 2019. Digital marketing strategy: an integrated approach to online marketing.
Kogan Page Publishers.
Mothersbaugh and et.al., 2020. Consumer behavior: Building marketing strategy. New York,
NY, USA: McGraw-Hill Education.
Alon and et,al., 2020. Global Marketing: Strategy, Practice, and Cases. Routledge.
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Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing: strategy, implementation &
practice. Pearson uk.
Prathapan, M., Sajin Sahadevan, D. and Zakkariya, K.A., 2018. Effectiveness of digital
marketing: Tourism websites comparative analytics based on AIDA
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