Costa Coffee: A Comprehensive SWOT Analysis and Recommendations

This report provides a comprehensive overview of Costa Coffee, a well-known coffeehouse chain, including its history, products, market segmentation, and global outlets. It presents a SWOT analysis, highlighting the company's strengths in brand recognition and premium image, weaknesses such as high sugar content and pricing, opportunities for market expansion and strategic alliances, and threats from competitors and economic recession. The report recommends adopting a competitive pricing strategy, forming alliances with other popular brands, and increasing investment in marketing activities to improve brand recognition and market effectiveness. In conclusion, Costa Coffee is performing well, and strategic market segmentation and continuous SWOT analysis are crucial for sustained success and growth in the competitive coffee market. Desklib offers a wealth of study resources for students.

Contents
 Introduction 3
 Overview of the chosen company including its history, product, market
segment and outlets. 3
 SWOT analysis of company 4
 Recommendation for chosen company 5
 Conclusion 5
 Reference 6

Introduction
A business refers to an enterprising entity that is
engaged in the commercial, professional and
industrial activities. An organization, a business
performs various functions in order to accomplish
their objectives. Business is an essential activity for
the any nations as it helps the economy to uplift its
living standard.

Company’ overview with its history, product,
market segment and outlets.
Costa Coffee is a coffeehouse chain and it is a subsidiary coffee shop. This café is
founded by Bruno Costa and Sergio Costa
History - In 1985, Sergio bought out the company’s Bruno’s share. In 1995, there
were 41 stores of Costa Coffee in UK which was acquired by the Whitbread, UK’s
biggest coffee shop and hotel operator, becoming wholly owned subsidiary.
Products- The Costa Coffee branches sell cold and hot drinks, cakes and pastries,
snacks and sandwiches. In 2020, this brand collaborated with the three chocolate
brands (After Eight, Terry’s and Quality Street) for some of their limited edition
Christmas drinks.

Market segment of Costa Coffee
 Segmentations- The respective café uses a
mix of the demographic and geographic
segmentation.
 Target market- It has targeted both the
male and female who are aged between 18
to 45 years.
 Positioning- Costa Coffee position for itself
as high quality blended coffee beverage by
using affordable pricing policy.

Outlets of Costa Coffee
There are around 10000 Smart Café
machines and 4000 Costa Coffee shops
worldwide. In 2018, during fiscal years,
there were total 2422 stores are opened
of Costa Coffee within UK.

SWOT analysis of company
Strength
 Brand recognitions
 Premium image
Weakness
 High sugar coffee
 Higher price
Opportunities
 Market expansion
 Alliance and acquisition
Threats
 Competitors
 Economic recession

Recommendation for chosen company
 The Costa Coffee should adopt such pricing policy which is affordable by
all customers. A competitive pricing strategy will help the company to face
competition in market and also increase its sales.
 Costa Coffee is a well known brand, in order to improve its brand
recognition more, the respective company should make alliance with some
other popular brand or companies.
 Costa Coffee needs to invest more amounts in to its marketing activates as
it will increase the effectiveness and productivity of respective cafe.

Conclusion
Form the above report it is concluded that, Costa Coffee is doing well in UK
and other location of the world. It offers a large variety of product to its
customers. To run a business on large scale a business need to segment their
market according to their similarity and target that segmentation which is
very profitable for them. They also need to analyze the SOWT matrix of
their company as it is helpful for the company to make aware them that
what is their string pillar and where they are lacking.

Reference
 Efe, B., Efe, Ö.F. and Ishizaka, A., 2022. A model proposal to examine the
effects of ships to marine pollution in terms of internal and external
factors. Soft Computing, 26(5), pp.2121-2134.
 Ioannidou, E., Christodoulou, V. and Evangelou, E., 2022. From
ethnography to performance: transforming interview narratives into artistic
performative acts–The project ‘Greco’at the Buffer Fringe Performing Arts
Festival. Language and Intercultural Communication, pp.1-21.
 Swarbrooke, J.S., 2022. Natural Disasters. In Encyclopedia of Tourism
Management and Marketing. Edward Elgar Publishing.

Thank you