Costa Coffee: Analysis of Marketing, Sales, and Negotiation Skills

This report provides an analysis of Costa Coffee's marketing, sales, and negotiation strategies. It begins with a PESTLE and SWOT analysis to evaluate the external and internal factors affecting the company. The report then discusses the marketing mix (product, price, promotion, place, people, process, physical evidence) as applied by Costa Coffee to attract and retain customers. Furthermore, it examines the sales and negotiation skills employed by Costa Coffee, emphasizing the importance of staying calm, keeping conversations light, and building trust with customers. The report highlights how these skills contribute to better customer relationships and overall business success, concluding with a reflection on personal development and the application of these skills in professional and personal contexts. Desklib provides a platform for students to access this assignment and many more solved papers.

Marketing, Sales and
Negotiation skills

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTLE and SWOT analysis.................................................................................................1
Discussion and analysis of marketing mix.............................................................................4
Sales and Negotiation skills applied by Costa Coffee-house.................................................5
CONCLUSION/ RECOMMENDATION ......................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Marketing is refers as a responsibility in order to selecting and managing the organisation
that produce marketing materials and offers marketing support. (Kārkliņa, 2021) It proactively
identify products and services that focus on over the course of companies sales cycle and then
offers materials, communication that will get a word out in market. Costa Coffee is a British
coffee-house chain. It was founded by Sergio Costa in 1971 with the headquartered established
in Bedfordshire, England. The company is dealing in hot and cold drinks, cakes and pastries,
sandwiches and snacks. Costa Coffee operates in over 3500 stores in worldwide. The
organisational objectives of the company are to attract new customers and to provide the
authentic coffee flavour to the world. In order to to achieve the objectives of the firm Costa is
using the social media through running regular photos competition(Rust, 2020). As company has
applied a variety of promotional technique in order to attract more consumers. They offers
loyalty programs for customers that will reward them with a free coffee in stores as they have
purchased 8 drinks. Costa is also using regular advertising on social media and television. These
will lead to achieving the goals and objectives of the Costa Coffee. In this report there will a
discussion regarding the the internal and external factor of Costa Coffee that will affect the
marketing of product and development, with the help of PESTLE and SWOT analysis. There
will be an understanding of marketing of products with the help of marketing mix. Lastly there
will be personal reflection on practice of sales and negotiation skills and strategies related to
Costa Coffee.
MAIN BODY
PESTLE and SWOT analysis
An internal analysis is a framework that helps organisation to analyse their internal
elements both tangible and intangible. That will help company to make better decisions.
SWOT analysis
SWOT analysis is a framework that assess the four aspects of business internally for
making the strategic decisions within organisation(Torres, Urvina, Lasa, 2019). In context to
Costa Coffee, for the internal analysis of the company through SWOT analysis in order to
identify the strength and weakness internally. For this it is mentioned below.
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Strength Weakness
 Top leading
 Global presence
 Wide variety
 Limited presence
 Limited market share
 Online presence
Opportunity Threat
 Expand globally
 Increase online presence
 Continuous expansion on products
 Competition
 Price war
Strength-
 Cost coffee is top leading coffee chain brand across world.
 Company operates over 3000 across the world.
 The company is offering wide variety of products.
Weakness-
 Its presence is in limited countries.
 There is a limited number of market share as there are several substitute available in
market.
 Organisation online presence is weak.
Opportunity-
 Company can expand its operation in countries.
 Invest in online presence to increase customer(de Sousa, Castañeda-Ayarza, 2022).
 Company should focus on continuous expansion on their products range.
Threat
 There is huge competition in market, there are various coffee brand with strong base.
 There is intense price competition from exiting coffee chains and fast food outlets.
PESTLE analysis
It is a study of analysing the external factor that might affect company growth and
development. This helps in providing the precise and structured analysis of external
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environment(Basset and et. al., 2018). In reference to Costa Coffee in order to analysis the
external through the help of Pestle analysis, which is mentioned below.
FACTORS DISCRIPTION
Political Factor  Tax rates
 Laws and regulations
Economical Factor  Economic rates
 Developing countries
Social Factor  Social trends
 Living standards
 High expectations
Technological Factor  Changes in technology
 Adapting new technology
Legal Factor  Health and safety laws
 FSA
Environmental Factor  Global warming
 Environmental laws
Political Factor-
 The turnover tax rate is quite high, which lead to increase in the price of product and has
an negative impact on the company.
 Due to operation in different country organisation has to follow every laws and
regulations of each country, if the government is business friendly. This might be the
positive impact on the company.
Economical Factor-
 The company is operating worldwide through which each countries economic factor
might influence firm. Though which Costa is aiming to reduce the price and maintaining
the quality of the product.
 As the economic growth in developing country which opens a window of opportunity for
the organisation in order to expand their market and can increase their revenue.
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Social Factor-
 With the constant changes in social trends, this might affect the Costa coffee. New trend
in market people are demanding more healthy food.
 There is an increased in living standard of people, as they need high quality of coffee
products that Costa is offering which is a positive impact on the company.
 Customers are not only drinks coffee but also relax and enjoy their free time through
sitting in coffee-house. Costa is offering with Wi-Fi and extra services.
Technological Factor-
 There is constant changes in technology and Costa has develop its operation system with
latest technology(Lahtinen, Dietrich, Rundle-Thiele, 2020).
 Costa has developed apps for phone through which people could locate outlets and order
online. This factor has positive impact on organisation.
Legal Factor-
 Costa provides healthy and safety environment for their employees and consumers.
 Company has also signed with Food and Standard Agency in order to ensure that
company is providing a healthy products across the world.
 The legal factor has positive factor on the organisation.
Environmental Factor-
 Costa provides eco-friendly packages. Company is using recyclable and reusable cups for
take-a-way.
 Company is focusing on their coffee beans produced as they roast their beans in its own
environment in London under high quality control. This has a positive impact.
Discussion and analysis of marketing mix
The marketing mix is a set of tactics or action that organisation use in order to promote
their products in the market. This help company to understand its products that can be offer to
their potential customers(Batat, 2022). It helps in planning a successful offering of products. The
marketing mix is a set to controllable marketing tool that a enterprise use in order to produce a
desired response from their target market. It includes everything that a firm can do in order to
influence demand of their products. This tool also help marketing planning and execution.
In context to Costa Coffee, company implement a quite range of promotional techniques
in order to attract customers. The provides a loyalty program for customers that will be reward
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consumers with a free coffee in store after there purchase of 8 drinks. In order to discuss the
marketing mix of organisation. Which is mentioned below.
FACTOR DISCRIPTION
PRODUCT Coffee, teas, hot chocolates and a wide variety of bakery items.
Vegetarians and vegans products
PRICE Calculated approach for pricing.
PROMOTION Rewards and programs.
PLACE Offline distribution
PEOPLE Employees, distributor and manufacturer
PROCESS Proper process
PHYSICAL Various outlets
Product-
Costa is offering different range of products that satisfy customers needs and desires.
Products that company is offering are coffee, teas, hot chocolates and a wide variety of bakery
items. There are vegetarians and vegans products also and items with gluten, nuts and peanuts
free.
Price-
Costa has a very calculated approach for pricing. At the brand value of the company is
high and has a premium brand. So the price are generally expensive. Their price are higher than
many other coffee shops in the market. Enterprise also has strategies through which they lower
their prices during a specific times when they promote their sales.
Promotion-
Organisation is applying different types of promotional techniques in order to attract
customers. They provides different rewards and programs to increase customer loyalty towards
brand.
Place-
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Costa has over 4000 stores and over 10,000 smart cafe machines across the world. Their
distribution strategies involve opening stores in populated areas with good transport links. They
offer convenient access to their customers.
People-
There are over thousand of people working with the Costa every day in order to provide
customers an excellent coffee experience. Company also offers rewards and offers to their
employees accordingly(GHAZI, Motamedi and Shahivand, 2018).
Process-
Costa Coffee has a very specific steps that employees need to take into consideration
before handling the orders. Likewise, consumers need to go through specific steps while ordering
their coffee though Costa Coffee app or through online platform.
Physical-
Company is focusing on creating the welcoming environment to attract customer. There
are various stores presence in market. Costa outlets have an excellent indoor seating. High
quality furniture and attractive décor. These will ensures the loyalty of customers and increase
consumer base.
Sales and Negotiation skills applied by Costa Coffee-house
A sales negotiation is communication between a buyer and seller inn order to make a
sales deals. These negotiations allows a seller to showcase their concerns regarding the purchase
through re-establishing the value of products or service and makes compromises. This is one of
the most stressful, anxiety inducing and potentially elements of sales(Boyer, 2022). Good
negotiation helps in contributing to the significantly in order to business success. As it helps in
building the better relationship with the customers and other employees. Building a trust between
individual and customers is another good way of conducting the sales negotiations. As being
respectful, thoughtful and respectful allows customers in order to gain trust about the quality
products and the value of the deals they are offering. A negotiation is the strategic discussion that
has to resolve any issues in a way that both parties will find it acceptable. As each parties tries to
persuade the other in order to agree with their own point f view. Through negotiating it all
involved the parties and try to avoid arguing but to agree in order to reach some form of
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compromise. As the company is in offering the customers service through the coffee so it will
help in acquiring the new one where both the customers and company can get what they wanting
form of best scenario or at least the half of what they want in such case it will vary the interest.
Each one includes empathy, willingness to compromise strategically, perceptiveness and
preparation. There are various skills that are needed in order to improve the sales negotiation
skills such as.
Stay calm
Composure is key when participating in negotiations. Worry or frustration can turn my
prospects off and undermine mine ability to see myself as a helpful, pleasant, and consultative
resource for them. Remember that negotiation is largely a relationship-building process. If I lose
my cool, my prospects will be less inclined to form a long-term, productive partnership with me.
Always keep my cool - for everyone's sake. I have also learnt that staying calm while selling
products to customers is very important. As it will ensure customer attracting towards me and
talking to me because of my calming nature. And it will ensure their revisit. Through implement
this skills in my personal development will help me in my future professional and personal
aspects.
Keep the conversation light
Negotiations can be intense – that's natural – but I need to do everything I can to make it
not hostile. These conversations should lead to pleasant and productive partnerships. Like any
other relationship, I don't want my deal with my prospect to have any bad blood or grudges.
Avoiding this kind of aggression or negative conflict starts with speaking lightly and jovially
during the discussion. I learnt that while keeping the conversation light and minimal will ensure
me hearing the needs of customers which will help in providing demands that will satisfy
customers needs(Huang and et. al., 2022). This will help me in dealing and negotiating with
people and sell much products with my polite conversation and hearing more to the customers.
In context to Costa Coffee having a sales and negotiation skills while selling the products is very
important. The sales team of the product in companies outlet these skills will help them to sell
and deal with their customers. This will help in building a public relationship which will lead to
customers loyalty towards the brand. As people wants them to be heard and through developing
the skills this will be fulfilled and customers will be satisfied and happy. Through staying clam
during having conversation with the customers will ensure a happy and polite conversation
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without any argument with customers and they will be happy. Through developing the keep the
conversation light will ensure the sales person to listen more about the needs and demands of the
customers from which they can fulfil their demands more appropriately.
Build a relationship
Employees need to focus on building the relationship with their customers, which will
allow them to connect and help in increasing the customers loyalty towards the brand.
Employees need to develop this skills in store because there the customers interaction is much
higher. Hence, it is required for employees to develop the build the relationship skills.
Relationship building is the combination of soft skill that a person apply to connect with others
and form positive relationship. In the workplace, building a relationship skill is important in
order to get along with customers, contribute to team and to build an understanding between each
other. Having a good interpersonal skills is essential for getting the know each other and working
with them successfully. Through caring about the building a relationship with the potential
customers and taking a interest in their world. It can show a significant improvement of the odds
for securing the sales and reattaining the customers for long-term.
CONCLUSION/ RECOMMENDATION
From the above report it is concluded that the Costa Coffee-house is well established in
the market and has a very strong base that help the company to grow and develop in business
environment. From the analysis of internal and external factor it concluded that these factor has
not that much effect on the growth of the company as company has already implemented the
solution in order to avoid such situation and organisation is developing continuos changes in
their operation and strategies. These was achieved with the help of Pestle and Swot analysis.
After understanding the marketing mix of the enterprise it is concluded that company is offering
their products at a quite simple strategies which company need to develop different approach in
order to approach more customers. Company can invest in their online platform and create a
online website through which customers can buy their products. This will ensure increased in
customers and increase sales. Lastly from the understanding of sales and negotiation skills it
shows that having a skills related to sales and negotiation will ensure having a strong relationship
between sales team and buyers. This is important for Costa Coffee-house to develop sales and
negotiation in their employees for selling the products.
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REFERENCES
Books and Journals
Basset and et. al., 2018. An integrated neutrosophic AHP and SWOT method for strategic
planning methodology selection. Benchmarking: An International Journal.
Batat, W., 2022. The death of the traditional marketing mix (7Ps) and the rise of the experiential
marketing mix (7Es). In Strategies for the Digital Customer Experience (pp. 178-194).
Edward Elgar Publishing.
Boyer, S.L. and Jap, S.D., 2022. The big spaces in sales negotiation research. Journal of Personal
Selling & Sales Management, pp.1-12.
de Sousa, G.C. and Castañeda-Ayarza, J.A., 2022. PESTEL analysis and the macro-
environmental factors that influence the development of the electric and hybrid vehicles
industry in Brazil. Case Studies on Transport Policy, 10(1), pp.686-699.
GHAZI, M.S.J., Motamedi, N. and Shahivand, M., 2018. Comparing the Marketing between the
Libraries of Tehran and Shahid Beheshti Medical Sciences Universities based on 7Ps
Marketing Model in 2017.
Huang, and et. al., 2022. Public Auction versus Private Negotiation in Residential Property
Sales. Journal of Housing Research, pp.1-20.
Kārkliņa, E., 2021. Uzņēmumu" Es mīlu kafiju" un" Costa Coffee Latvia" mārketinga
komunikācija Covid-19 laikā.
Lahtinen, V., Dietrich, T. and Rundle-Thiele, S., 2020. Long live the marketing mix. Testing the
effectiveness of the commercial marketing mix in a social marketing context. Journal of
Social Marketing.
Rust, R.T., 2020. Outside-in marketing: Why, when and how?. Industrial Marketing
Management, 89, pp.102-104.
Torres, C., Urvina, L. and de Lasa, H., 2019. A chemical equilibrium model for biomass
gasification. Application to Costa Rican coffee pulp transformation unit. Biomass and
Bioenergy, 123, pp.89-103.
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