Marketing Function Analysis Report: Costa Coffee's Strategy Essentials

This report provides a comprehensive analysis of Costa Coffee's marketing function, delving into its roles and responsibilities, as well as its relationships with other organizational units such as human resources, finance, and production. The report examines the marketing mix of Costa Coffee, comparing it with its competitor, Starbucks, across various elements including product, price, place, promotion, physical evidence, process, and people. Furthermore, the report develops a marketing plan for Costa Coffee, aiming to achieve its organizational objectives effectively and efficiently. The analysis covers market research, strategy formulation, and promotional activities, offering insights into Costa Coffee's approach to attracting and retaining customers. The report highlights the importance of marketing in the hospitality sector and provides a detailed examination of Costa Coffee's marketing strategies.

Hospitality Marketing
Essentials

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Roles and responsibilities of marketing function...................................................................3
P2 Relation of marketing functions with other functional units of organisation........................4
TASK 2............................................................................................................................................5
P3 Marketing Mix of Company..................................................................................................5
TASK 4............................................................................................................................................8
P4 Development of Marketing Plan of Company.......................................................................8
CONCLUSION..............................................................................................................................11
REFERENCE.................................................................................................................................12

INTRODUCTION
Marketing plays an essential role in each and every business organization. Thus, it refers
to activities which helps company in promoting and buying or selling of a product or service.
Whereas, it includes advertising, selling, and delivering products to consumers. The main
objective of marketing function is to increase sales of company. This report is conducted on
Costa coffee which is an largest coffee chains in United kingdom. Although it is founded in 1971
by Bruno costa and Sergio costa and it is an coffee house chain of subsidiary of American
company i.e. Coca Cola. Its spread their operation and offerings in across 31 countries with this
coffee chain (Aschemann-Witzel, and Normann, 2016). This present report considers different
role and responsibility of marketing function and the relation of different marketing function
with other function or organisation. Along with this, report discussed the marketing mix of costa
coffee by comparing its competitors. At last marketing plan is developed for achieving the
organizational objective in effective and efficient manner.
TASK 1
P1 Roles and responsibilities of marketing function.
The marketing function is most essential part in every business organization, which help
top level management in promoting and branding of their company as well as their offerings.
Although it plays an vary different various role and responsibilities in business. Some of the
roles of marketing are, Market research, Analysing collected information, developing strategies,
Marketing campaigns, promotional activities, risk taking, storing, transporting, selling, market
information, Using customer centric approaches, marketing planning and many more (Bai and
Chang, 2015).
Market research: The main role of marketing is researching, as it plays an very essential
and crucial role in company. In context of cost coffee, the main role of marketing department is
to do research about target market, as they have to analysis market and do the research of
companies offerings. If its talked about the responsibility of this function, it can be said that, its
responsibility is to analysis the market as well as their targeted potential customers and collect
the important relevant & information which help company in enchaining offerings.
Formation of strategies: The another main function of marketing department is
formulating the effective strategy. After analysing and collecting the information, it is required

to marketing department to develop an effective strategy which will help them in attracting and
grabbing huge number of customers. Although, its very most important role of marketing
division to form an profitable strategies for the functions and department or organization. With
help of this employees as well as their business organization will get help in achieving their
individual as well as organizational objective (Baker and Magnini, 2016).
P2 Relation of marketing functions with other functional units of organisation.
The marketing function of each and every business organization is interrelated with other
functions or department of business. Thus, it plays an very important ans essential role. It can be
said that marketing function of Costa coffee is interrelated and connected with production,
human resource, finance, human resource department, research and development, sales of their
company. Here some interrelationship are discussed in brief.
Marketing and Human resource: These both function of Costa Coffee is related with
each other. If there is requirements of employee in marketing department, than this is fulfilled by
the human resource department of their company. The marketing division should tell their
requirements in employee and job specification as well as their need to HR so that, they can
concern this to full fill their needs. This is how they are related with each other (Cant and Wiid,
2016) .
Marketing and Finance: The Marketing as well as the finance department of each and
every company should focuses on maintaining their relationship effectively. In context to Costa
Coffee, both of these department has focuses on building the effective relationship thus, it will
help both of them in optimum utilizing of financial resources of company. In addition to this, the
the finance department will help then marketing division of Costa Coffee in issuing and passing
the budget plan of marketing for executing and achieving the organizational objective. This is
how both department of company is related.
Production and marketing: The Marketing and production department of a company is
related to each other such as the marketing department of Costa Coffee focuses on analysing
their market which will help production department to manufacture the product accordingly the
analysis. As this will help both the department in functioning effectively as well as it helps in
achieving the organizational goals and objective.

TASK 2
P3 Marketing Mix of Company.
Marketing mix is an tool which is used by each and every company for promoting
products and services and some offerings in which they are dealing. Companies always believe
in making their strategies very attractive so that they are able to increase their sales (Blythe and
Martin, 2019). Here marketing mix of Costa coffee is discussed with its competitor Starbucks, as
it will help management of costa coffee in analysing their environment or the different prospect
of company.
Basis Costa Coffee Star bucks
product The Costa coffee company is largest
and leading organization in United
Kingdom. This is an brand whose
main product is coffee. Although
they focuses on offering unique and
different tempting taste of coffee. As
they offer different many product like
cappuccino, Latte, Mocha, Espresso,
coffee cream etc. (Ryan, 2016).
The Starbucks is also one of leading
chains of coffee which is present in world.
There main product is coffee as this brand
is famous for this product only. Apart form
this, there are so many product which is
offered by company such as some
Beverages (Brewed coffees, Italian-style
espresso, cold blended beverages, fruit
juice), Foods, (salads, pastries, ice-
creams), non-food items (Mugs, Travel
tumblers, coffee makers, coffee grinders,
storage containers, compact discs, games)
Price The management of Costa coffee has
adopted an effective different pricing
strategy. Thus, they have an premium
pricing strategy, as they are serving
different two types of small & large
cups offerings. According to offering
size they has setted prices as per
proportion of quantity and quality
they offers.
Whereas the management of Starbucks has
focuses on adopting an profitable pricing
strategy as they use competitive pricing
strategy to offers their products. As they
focuses on offerings different types and
various quantities of product. Such as they
has divided their quantity as short, demi,
mini, tall, grande, trenta and venti.
According to these variance in sizes in

quantity, the management has setted their
prices of of drink
Place The management of Costa coffee has
effectively focused on this element of
marketing mix in effective and
beneficent manner. As they have
approximately 3300 outlets in 31
countries across world. Further
more, it has more that 6000 vending
machine in UK (Chaffey and Smith,
2017).
If its talked about, the place element of
marketing mix of Starbucks company, then
it can be said that, its has wider presence
in 70 countries such as in Africa, North
America, Asia, Europe, and many others.
Although, the company has maximum
outlets in United Kingdom as well as they
also have online presence with help of
website, web designing that involves full
information about every factor of
company.
Promotion The Costa coffee is an famous brand
in all over world. Although, the
management company has adopted
an unique promotional strategy, as
they are serving their offerings with
their brand name which gives an
positive impact in mind of every
customer. Along with this, the
company do not use any promotional
tool like television advertisements,
print media, social media and other
tools. They only relies on mouth
publicity as major marketing strategy
as well as offering best quality of
product and services. In addition to
this, company distribute free sample
The Starbucks is an well known brand as
the management has created this with help
of different marketing tool like which is
involved in ads on television, radio, print
media, through online platform and many
mother tools Davis, 2017) (Deepak and
Jeyakumar, 2019).

to people, as they believe that quality
of their products so high ans this is
only factor to attract customers.
Physical
Evidence
The physical evidence of Costa
coffee company has vast concept, as
it is available in 31 countries, with
approx 3400 stores with more than
18412 employee and around 6000
costa express vending machines in all
over world. Along with this, the
management of Costa Coffee is
involved in selling their coffee mugs
with their brand name to their
customers.
Whereas, the management of Starbucks
has focuses on creating and building its
brand name in countries. As such they are
serving their offerings in beautiful
ambience with a coffee cups with their
logo printed on each and every physical
products (Kerin and Hartley, 2015).
Process The management of Costa Coffee
focused in following an effective
procedure in which they have very
attractive and proper managed
seating arrangement in their each and
every outlets. As they believe that
providing comfort with best quality
services is best strategy. Along with
this they offers different methods of
payments to their customers such as
online. Debit cad, credit card, cash
etc.
The following organisation makes use of
different online platforms, joint ventures
and licensing programs in order to make
success business operations of the
company across the globe. With the help
of this, it will be possible to make
improvement in the overall processes of
the organisation as well as betterment in
the services as well (Kingsnorth, 2019).
People Costa coffee is a brand which lays
emphasis on its employees and
customers. They believe in having a
well trained workforce so that they
Around 2 lacs employees are working
presently in Starbucks, they providing
employment to large proportion of people
in countries they are having presence.

can serve their customers according
to set standards. Also, this company
is giving first priority to their
customers, they try to do timely
innovations and modifications
according to changing demands &
tastes of their targeted customers
(Kotler and et. al., 2017).
They also have unique strategy to provide
something different to their customers as
they do high customization in their
products. They have a very polite and
trained employees who make sure that
they are providing best services to their
customers. Starbucks is brand which uses
name of their customers printed on their
coffee mugs which helps company in
having a distinguished strategy as
compared to their competitors.
From the above mentioned marketing mix of two different companies that is Costa
Coffee & Starbucks are same sector company which are dealing in similar types of products, as
their giving an high and strong competition to each other. Along with this, this is analysed the
Costa Coffee has created an effective and strong brand image in competitive market, this is the
only reason, the management of Costs Coffee is using minimum promotional activities as well as
strategies. Although, they focuses offering the best quality of product and services as well as best
satisfaction level of their to each and every customer.
TASK 4
P4 Development of Marketing Plan of Company.
Executive Summary: The marketing plan is defined as an business document which
focuses on outlining the different marketing strategy, in other words, marketing plan is
developed by marketing manager of company for analysing the different aspects and condition or
strategy in order to gain more competitive advantage. This marketing plan is developed on the
Costa coffee company which deals in coffee. As now their management is thinking about
increasing their sale as well as their customer base. Here, detailed plan is discussed in brief
which includes vision, mission & objective of company and the different marketing strategy,
competitors, STP approach, capabilities and threat of companies are discussed (Kozlenkova and
et. al., 2015) .

Company overview: The Costa coffee company is leading largest coffee chains in
United Kingdom. As company has approximately more than 3400 stores in across 31 countries
with 18412 employee working in their organization. Along with this,company has 2121
restaurants and around 6000 coats express vending machines in all over world.
Company product: The company has wider range of product chain. Such product of
company are Hot drink- it includes coffees, teas and hot chocolates, cold drinks– including
Frostino and fruit coolers, savoury snacks includes different kinds of sandwiches as well as
breakfast items, cakes and pastries and the reusable cups as well.
Vision: The vision of Costa coffee is to do optimum utilization of resources and their
assets which will help them in gaining more profitability (Lane, 2016).
Mission: The mission of Costa coffee has setted their mission to attain a profitable
position in competitive market market by providing high quality products and best customer
services.
Objective: The main objective of Costa coffee company is to serve best quality product
to its every customer with a tempting, intense and exquisite taste.
Marketing Objective: The marketing manager of Costa coffee has setted their own
objective, which states that they are focuses on increasing their sales by 25% as well as double
their customer base by providing best quality products.
Competitors: The Costa coffee company has so many competitors like Starbucks,
DUNKIN' DONUTS, LAVAAZZA, Cafe Coffee Day, BARISTA, KIMBO, ILLY, Coffee Club
UK and many more (Lewis and Ling, 2016).
SWOT Analysis:
STRENGTH WEEKNESS

 The main strength of Costa Coffee is
that they have excellent brand image
and brand visibility in their competitive
market.
 Along with this, they are largest coffee
chains in all-over due to their best
quality product and wider range of
product line.
 The main weakness of Costa Coffee is
that their offerings are present in
limited number of cities.
 In addition to this, the company has few
number of stores in all over the world,
by which they can not offerer their
offerings to whole market. Thus, it
leads to the weakness to company.
OPPORTUNITY THREAT
 One of the main opportunity for Costs
Coffee is that they can merge or taking
over the other business and forming
effective strategic alliances with other
profitable coffee companies. As this
will help them in gaining more
competitive advantage.
 In addition to this, the management
Costa Coffee can expand in different
various consumer markets such as in
India and china. As it aid then in
grabbing huge customer base.
 The main threat for Costa Coffee is
threat for existing coffee chain as well
as fast food outlets.
 The another major threat for the
company is that market has intense
price competition (Linton, 2017).
Marketing Strategies: It plays an very important in marketing plan, with help of this only
management can develop an success strategy their their any product and services. Thus it helps
them in promotion and branding of their offerings in proper way.
STP Approach: This represent Segmentation, Targeting, Positioning. Although, this approach is
used by every business organization in order to segment their market as per the define criteria,
after that segmenting and targeting the market and at final stage product and services are position
in targeted market.

Segmentation: The management of Costa coffee is making use of this strategy to
segment their market. With the help of this, company segmented their market in geographic and
demographic segmentation. As this is conducted mainly, as they are available in many countries.
In addition to this, the management of Costa Coffee segment those customers who want to
explore and experience some different taste (Macarthy, 2018).
Targeting: After segmenting market, the management of Costa Coffee focuses on this
next step whose aim is to target profitable market. With the help of this strategy, the costa
concentrate on target the potential market as well as target youth of middle and higher incomer
groups. In addition to this, they have targeted market of 31 countries as they are focusing on
adopting the selective strategy in order to target their customers and fulfil their al demand &
requirements. and cater their needs.
Positioning: The management of Costa Coffee has target their market effective. After
this, they focused on positioning their product and services in effective and efficient manner. In
addition to this, Costa Coffee is offerings their products in various regions and their company
has position their products and services in between Youth by different marketing strategy that
helps them in promoting their offerings and brand name as well as increasing their target market
by providing best quality products and exited taste at minimum Prices. Along with this, the
management has focused on reaching each and every potential customer, that they have used
different retail stores and vending machines to reach customer in effective manner (McDonald
and Wilson, 2016).
Financial budget: For executing marketing plan and achieving setted objective the
management of Costa Coffee is required finance approximately £1.6 million. With help of this,
funds the marketing department can easily attain their department as well as organizational
objective in effective manner.
Implementing: At the time of implementing the plan the manager of Costa Coffee
should focused and considered that all the activities as well as all stages are executed properly
within specified timer period.
Monitoring & control: After implementation of marketing plan, the management should
concentrate on monitoring & controlling the formulated plan on regular bases. As it will help
them in tracking the progress of plan as well as aid in analysing the of modification in plan in
effective manner (Mueller and et. al., 2015).