Detailed Marketing Analysis of Costa Coffee Shop: A Report

This report provides a detailed marketing analysis of Costa Coffee, examining its key roles and responsibilities within the marketing function and its relationship to the wider organizational context. It explores market analysis, pricing, and after-sales service, highlighting their importance in attracting and retaining customers. The report then delves into how Costa Coffee applies the marketing mix (product, price, place, promotion, physical evidence, process, and people) to achieve its business objectives, comparing its strategies with those of Cafe Coffee Day. The analysis covers product offerings, pricing strategies, distribution, promotional activities, and the overall customer experience. The report emphasizes the interrelation of the marketing department with production and finance, illustrating how marketing insights inform product development and financial planning. Overall, this report provides a comprehensive overview of Costa Coffee's marketing approach, offering valuable insights into its competitive positioning and strategies.

Marketing
Essential

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key roles and responsibilities of the marketing function......................................................1
P2 Roles and responsibilities of marketing relate to wider organisational context....................2
TASK 2............................................................................................................................................3
P3 Compare ways in which different organisations apply marketing mix to marketing
planning to achieve business objectives......................................................................................3
CONCLUSION ...............................................................................................................................7
REFRENCES...................................................................................................................................8

INTRODUCTION
Marketing refers to procedure of a business in which firm generally focuses on
developing relationship and fulfilling customer's requirement and need. There are major five
concept of marketing product, production concept, selling concept, marketing concept and
societal marketing concept (Pike, 2015). Selected company for respective assignment is Costa
Coffee Shop that is established by Bruno Costa and Sergio Costa in year 1971. Its headquarter is
situated in Dunstable, England, United Kingdom and it offer their products at worldwide level.
Products offer by respective company are coffee, snacks, sandwiches, tea, other drinks and many
more. Topics included in this project are role and responsibilities of marketing department and
its interrelation with other departments of a firm. Along with this it will include marketing mix
of respective company and its competitor.
TASK 1
P1 Key roles and responsibilities of the marketing function
Marketing: marketing refers to a procedure which a company use so that they
communicate with their customers in effective manner in order to retain them for long time
duration. Through this an organisation also able to promote and advertise their products as well
as services in order to attract more customers. In respect of Costa Coffee Shop they conduct
proper marketing strategies so that they attain their target by attracting their potential service
users.
Importance of marketing: Marketing help a firm in conducting their various activities, some
major importance which are faced by Costa Coffee Shop are mentioned below:-
 Through effective marketing respective company able to promote and advertise their
product and services in effective manner at worldwide level.
 Through this Costa Coffee Shop also able to design, maintain, promote their offerings
which attract customers at huge ratio.
Marketing function: It refers to role that help an organization in identifying sources in order to
succeed products and services at marketplace. Through this company able to promote their
business functions in order to attract customers and encourage them to purchase products and
services (Simkin and Dibb, 20133). There are major 8 marketing function i.e. selling, buying,
financing, risk taking, grading, storing, securing information of market and transportation.
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Key marketing functions and their role:- Market analysis – Market analysis refers to the function in which an organisation
conduct evaluation of market in order to identify their potential customers as well as
market (Lipsman and et.al., 2012). Through this company also able to design their
products and services according to customers. In Costa Coffee Shop role and
responsibility played by respective function is that they identify potential customers and
help in developing products as well as services in effective manner. Pricing Distribution – It refers to function through which a company able to decide price
of its products and services according to its quality and quantity. It is necessary for a firm
to decide price of products in effective manner so that it can be affordable by customers.
Role and responsibility of respective function at Costa Coffee Shop is that they decide
price of products and services by comparing it with competitors. Along with this,
according to respective company they think that customers are more focuses on quality of
product instead of price.
 After sales service – According to this function it is necessary for a company to provide
after sales services because through it they able to attract customers. Along with this, it
will also help in resolving customers queries and issues so that they stay connected with
company in effective manner. Role and responsibility of respective function at Costa
Coffee Shop is that they take feedback and suggestions from their customers so that they
conduct changes according in order to attract them in effective manner.
P2 Roles and responsibilities of marketing relate to wider organisational context
Marketing plays an essential role in an organisation because by it they able to attain their
target in effective manner by attracting customers and retaining them for long time duration. In
respect of Costa Coffee Shop marketing help them in advertising as well as promoting their
products as well as services in effective manner so that it will attract and encourage potential
service users to visit their store in order to buy it (Stern and Porr, 2017). This will leads
profitability ratio as well as market shares of respective coffee shop. In respective coffee shop
there are various departments which are interrelated with each other in order to attain their goal
by effective completion of activities. Some major of them are given below:- Production department – According to this department they conduct activities related to
production of good and services. This department take care that all products and services
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are up to the mark or according to standard. In context of Costa Coffee Shop, their
production department insure that their employees making products in effective manner
according to their standard process of manufacturing. This department of respective
coffee shop is interrelated with marketing department. This is so because marketing
department conduct analysis and identify need and demand of customers which help
production department in developing products accordingly as well as in effective manner.
 Finance department – In an organization this department support all other departments
financially. It conduct analysis and then develop budget accordingly so that each and
every department conduct their work in effective manner. In respect of Costa Coffee
Shop their financial department conduct analysis and ask from every department about
their financial need (Clow and James, 2014). Then accordingly they develop budget and
assign capital to diverse departments. The respective department also take care of cask
section of respective coffee shop. Marketing department is also interrelated with this
department because they provide them fund in order to conduct promotional as well as
advertising department in effective manner.
TASK 2
P3 Compare ways in which different organisations apply marketing mix to marketing planning to
achieve business objectives
Marketing mix defined as a procedure which is adopted by a firm for analysis and
evaluating its competitive advancement. This will also help them in developing decision
accordingly which leads to gaining of huge profitability at potential marketplace. Along with
this, through effective marketing mix a company able to find its power as compare to its
competitors (Baines, Fill and Page, 2013). In marketing mix there are mainly 4 P's that are
products, promotion, price and place. Then further it is expand through 3 more P's i.e. physical
evidences, process and peoples. In respect of Costa Coffee Shop they adopt marketing mix in
order to analysis its market position as well as they also compare it with its competitor, which is
mentioned below:-
Basis Costa Coffee Shop Cafe Coffee Day
Product The respective company is one
of the famous outlet which
It is one of the leading coffee
chain all over the world. Cafe
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offer its product at worldwide
level. They offer variety of
coffees and snacks such as
cappuccino, Latte, America-
no, Expresso, Mocha and
many more. They also offer ice
blended coffee like mocha
cream frostino, lemonade,
coffee cream etc. (Clow and
James, 2013)
Coffee Day is premium coffee
bar which provide variety of
coffee, food and other drinks.
They attract their service users
through apparels, cups,
accessories, gift card and
many more. The respective
company also introduce
products according to location
they are serving. For example
in India they serve tikka
sandwiches, biryani and so on.
Price Pricing strategy which is
adopted by respective
company is based in their
competitors as well as they
also decide little bit more
premium from them.
According to them price is
secondary for their customers
because service users are more
focused on products quality.
The pricing strategy developed
by respective company is
based on competitive pricing
and value based pricing
method. Along with this price
of diverse quantity products
are different such as they serve
products on three quantity i.e.
large, medium and small.
They also as for extra amount
for extra ingredients such as
chocolate, sugar, cream and so
on.
Place Costa Coffee Shop is operating
its business in 31 countries
with approx 3300 outlets.
Along with this, respective
company operating near by
The respective company
operate its business all over
the world such as Austria,
Malaysia, India and many
more (De, Marston and Roth,
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2100 restaurants at United
Kingdom and approx 1200 are
operating across boarder. They
are mainly focuses on upper
middle class peoples and rich
service users.
2015). They generally run
three variety of outlets i.e.
Cafe Coffee day stores, CCD
Square and CCD Lounge.
Promotion It is a premium brand and they
are not promoting their
business through TV, print
media, advertisement and so
on. Their major or most
effective marketing strategy is
mouth publicity form its loyal
and potential service users.
Moreover they also adopt
digital technology for
promotional activities which
help them in covering huge
customer's base (Costa Coffee
Marketing Mix (4Ps) Strategy,
2018).
Cafe Coffee Day adopt ATL
as well as BTL for promoting
their products and services at
worldwide level. They
generally conduct promotional
activities at that location where
target as well as potential
audiences are available. For
advertisement they adopt print
media, advertisement on
television and many more.
Along with this they also
attract customers through
various offer like happy hours,
combo deals and so on.
Physical Evidences Physical evidence of
respective company is their
outlets. They are operating
their business functions at
around 31 countries and there
are nearby 3300 outlet are
operating their. Along with
this products offer by Costa
Coffee Shop are also consider
Physical evidence of
respective company is their
ambience. They generally use
violet colour for interior of
their stores and sea green
colour for lounges (Café
Coffee Day Marketing Mix
(4Ps) Strategy, 2008). Along
with this they also sell their
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as their physical evidences. mugs as well as cups with
name written on it and it also
have merchandise on products.
Process Costa Coffee Shop adopt same
procedure of making coffee at
worldwide level. Along with
this each outlet of respective
coffee shop have very nice
sitting arrangement. The
respective company employees
conduct their procedure very
effectively so that service users
feel comfortable and satisfied.
CCD adopt as well as maintain
same process at its all location
where they are serving
products (Café Coffee Day
Marketing Mix (4Ps) Strategy,
2008). They also insure that
response duration must be
minimum so that their
customers get satisfied with
their services. Along with this
they also provide premium
lounges as well as valet
parking.
Peoples The respective company
properly take care of their
peoples i.e. customers and
employees. There are more
then 20 thousand staffs
working in respective
company. Their employees are
highly trained so that they treat
or serve their customers in
appropriate way (Costa Coffee
Marketing Mix (4Ps) Strategy,
2018). Along with this
employees of respective
company wear same uniform
Employees of Cafe Coffee
Day train their employees in
effective manner so that they
treat their customers in
effective manner. Their
employees are uniformed well
and very gentle while
communicating with
customers.
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i.e. deep black colour at
worldwide level.
Similarities: Sameness among Costa Coffee Shop and Cafe Coffee Day is that they are
serving same kind of products and service at world wide level i.e. coffee with various taste.
Along with this both the companies also provide snacks and others drinks along with coffee.
Both the companies are treat their customers in effective manner which attract them as well as
retain them for long time duration.
CONCLUSION
By conducting evaluation of above mentioned points it can be summarise that marketing
is essential for each and every department because by it company able to attract customers by
offering appropriate products and services. Through this an organisation also able to promote and
advertise their brand name in effective manner. There are also various role and responsibilities
which are played by respective department a well as it is also interrelate with other departments
of a firm in order to conduct work effectively. It is also necessary for respective department to
conduct analysis of their market for which they may adopt marketing mix strategy. Along with
this they can also compare it with competitor in order to identify which is more effective in a
particular marketplace.
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REFRENCES
Books and journals
Pike, S., 2015. Destination marketing: essentials. Routledge.
Simkin, L. and Dibb, S., 2013. Marketing essentials. Cengage Learning EMEA.
Lipsman, A., and et.al., 2012. The power of “like”: How brands reach (and influence) fans
through social-media marketing. Journal of Advertising research, 52(1), pp.40-52.
Stern, P.N. and Porr, C.J., 2017. Essentials of accessible grounded theory. Routledge.
Clow, K.E. and James, K.E., 2014. The marketing research process. Essentials of marketing
research: Putting research into practice, pp.25-61.
Baines, P., Fill, C. and Page, K., 2013. Essentials of marketing. Oxford University Press.
Clow, K.E. and James, K.E., 2013. Essentials of marketing research: Putting research into
practice. Sage.
De Jong, M., Marston, N. and Roth, E., 2015. The eight essentials of innovation. McKinsey
Quarterly, 2, pp.1-12.
Online
Costa Coffee Marketing Mix (4Ps) Strategy. 2018. [Online]. Available
through:<https://www.mbaskool.com/marketing-mix/services/17119-costa-
coffee.html>.
Café Coffee Day Marketing Mix (4Ps) Strategy. 2008. [Online]. Available
through:<https://www.mbaskool.com/marketing-mix/services/16992-cafe-coffee-
day.html>.
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