Strategic Marketing: Costa Coffee's Expansion in the US Market

This report provides a comprehensive analysis of Costa Coffee's strategic expansion into the US market, focusing on the application of key marketing principles and practices. It includes a situational analysis utilizing SWOT and PESTLE frameworks to evaluate Costa Coffee's strengths, weaknesses, opportunities, threats, and the broader political, economic, socio-cultural, technological, environmental, and legal factors influencing its market entry. The report outlines specific objectives for the expansion, such as increasing market share, enhancing profitability through omnichannel strategies, and improving customer satisfaction. The conclusion emphasizes the importance of effective marketing techniques for establishing Costa Coffee's presence in the US, supported by relevant references.

PRINCIPLES AND PRACTICES
OF MARKETING

TABLE OF CONTENT
 Introduction
 Situational analysis
 Pestle analysis
 Objectives
 Conclusion
 References

INTRODUCTION
Marketing states the activities that undertaken by any company in
order to promote the buying and selling of product as well as services.
It involves the actions that are related to the advertising, selling as well
as delivering products and services to their users or even other
businesses as well. As per current scenario, the marketing principles
and practices are being changed drastically. In order to elaborate the
concept, Costa has been chosen as a company which is British coffee
chain headquartered in England. This presentation will illustrate the
situational analysis and objectives of the company so that they can
expand appropriately in US.

SITUATIONAL ANALYSIS
Costa coffee is a coffee house chain brand situated in the United Kingdom. The company is highly famous
in order to provide products such as coffee, snacks, sandwiches, tea, ice drinks, etc. Currently the company
is available and situated in most of the countries and having various outlets. Right now, the Costa Coffee
wants to expand their business into the US. Hence, the company requires internal and external
environmental analysis in order to expand themselves in most effectual manner with the help of SWOT
and PESTLE analysis.
SWOT
 Strengths: the strengths of costa coffee includes the global presence of the brand through which they
are highly and easily recognized by every citizen of every country irrespective of their presence into
that country or town. Currently they have a chain having network of more than 4000 stores in more
than 30 countries. Moreover, the costa is appropriately able to provide pleasant atmosphere which also
help the firm to build a strong database of loyal customers with the help of providing them appropriate
quality products as well as services. They are having the place at which the customers like to spend
their time which amplify the chances of company sales. The company is extremely focused towards
customers and their preferences which also act as their strength and assist them while expansion.

CONTD.
 Weaknesses: The Costa Coffee has limited market presence in the UK and in other developed
countries as well. Thus, the company is relied on highly over developed market and hence want to
expand into US. Another weakness of the company is that they offer premium range customers and
offer much higher prices than their competitors. Moreover, the company provides coffee is extremely
high sugar coffee. Thus, the sale has been declined due to healthy diet trends.
 Opportunities: The coffee house brand consider making alliances with other brands into the
beverage and food industry. This help the company in varied ways such as market expansion,
learning opportunities and others. The brand also considers offering similar quality products at low
costs. The company also expands their target market by entering into the global world and thus, it
does for the betterment of the company and expand into US. The company also have the opportunity
to expand products as well by providing healthier products into the category of caffeine.

PESTLE ANALYSIS
 Political factors: Costa coffee is a leading coffee chain brand all across the world. Thus, the
political environment differ from country to country and thus within the US as well. Right now they
are operated in various countries and follow their rules and regulations. Now they have to follow
the rules and regulations of United States in order to become successful in their functioning. If the
government is business friendly then the corporate tax would be fewer restrictions over operating
businesses.
 Economic factors: The company thrives into the business world with various and several economic
policies. The economic growth in more developed as well as developing countries. USA is well-
developed country having great economy of the people along with having rising income as well.
With the changing income, the consumption requirements are highly changed which is also
beneficial for the company. Thus, in order to get advantages of expanding business into the other
countries of the world. Stronger economy allows consumers to purchase the products they want the
most.

CONTD.
 Socio cultural factors: in general there are two major socio cultural factors affects the whole
industry such as health consciousness and fair trade. In context of health benefits, the perception of
the people have changes drastically specially after the Covid-19 pandemic situation. Making
healthier choices are trendier than ever and thus causing consumers to spend more time exercising
eat better food and avoid unhealthy practices or habits. On the other hand, numerous studies have
announced that coffee is not unhealthy and thus, it is highly recommended into healthy eating
habits.
 Technological factors: The latest technology and adoption of the latest trends is the ultimate way
for the Costa to originate their image within the market space of USA. Genetically engineered
coffee is high and rich in taste and thus help to grow the company into the markets of US.
Although, there are few customers as well who are not interested in order to consume genetically
engineered coffee. The company have to utilize advanced machines and appliances in order to
make the coffee highly unique in their own ways which effectively provide benefits to the company
even in the new market area.

CONTD.
 Environmental factors: Currently, the environment is facing lots of environmental issues while
some of the issues are not related to the food and beverages companies. But still all business
companies have to adopt effectual strategies so that they can omit Co2 emissions. The Costa coffee
have to deal with various situation in which they have to fulfil their roles and responsibilities to
provide their products and services which are highly sustainable in one way or another. Costa
coffee also decides to become a part of saving the environment and thus recycle the similar volume
of takeaways cups used by the customers on annual basis in order to stop wasting of millions of
cups in a landfill.
 Legal factors: It is very much important for the firm to work under legal obligations and frame
work in order to fulfil pointers set by the government. One law is related to the treatment provided
to the labourers along with appropriate working conditions to the employees working over there.
Although Costa have to face various negative comments as well in context of providing treatment
to their employees. But in future terms and expanding business in US, the company will take
appropriate actions over such humours and their best to avoid such things by adopting legal
practices.

OBJECTIVES
 To expand the business within the USA for the betterment of the business.
 To enhance profit margin with the use of Omni channel to attract more
consumers in the US.
 To understand that the set objectives are achievable in limited time frame
or not.
 To measure the outcome of expanding business into new environment with
the help of digital marketing.
 To strengthen customer satisfaction in the markets of USA by delivering
quality services by end of this financial year.

CONCLUSION
From the above presentation it has been concluded that with
the use of effectual marketing techniques, the Costa Coffee
appropriately able to establish their image and business within
the USA.

REFERENCES
 Chandran, C. and Bhattacharya, P., 2019. Hotel’s best practices as strategic drivers for
environmental sustainability and green marketing. Journal of Global Scholars of Marketing
Science, 29(2), pp.218-233.
 Soriano, W.C.J., 2021, December. Branding With Integrity: An Ethical Perspective on Marketing
Practices. In Ascendens Asia Journal of Multidisciplinary Research Conference
Proceedings (Vol. 4, No. 1).