Digital Marketing Strategies for Costa Coffee: A Business Plan Report

This report provides a comprehensive analysis of digital marketing strategies for Costa Coffee, examining various aspects from defining marketing concepts to developing a business plan. It delves into the marketing planning process, exploring the differences between transactional and relationship marketing, and the role of the internet in modern marketing. The report outlines market research systems, including primary and secondary research, and explores how to identify new market opportunities. Furthermore, it defines the strategic planning process, segmentation, targeting, and positioning, while also discussing decision-making units and processes for both consumers and organizations. Finally, the report focuses on developing a business plan to achieve business objectives and identifying appropriate marketing tools to meet business and customer needs. This comprehensive analysis aims to provide insights into how Costa Coffee can leverage digital marketing to gain a competitive advantage.

Taking The Costa Coffee
Experience Digital to the next
level to achieve a competitive
advantage

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1 Define the marketing concept..............................................................................................3
2 Stages of marketing planning process.................................................................................3
3 Difference between transactional and relationship marketing............................................4
4 Difference between marketing mix planning for product based and service based
organization............................................................................................................................5
5 The role of internet in modern marketing ...........................................................................6
TASK 2............................................................................................................................................6
1 Outline market research system used in gathering and managing market research............6
2 Define stage of marketing research process........................................................................7
3 Collect market information to identify new products opportunities...................................7
4 Identify new market opportunities.......................................................................................8
TASK 3............................................................................................................................................8
1 Define strategic planning process........................................................................................8
2 Outline segmentation, targeting and position process.........................................................9
3 Define decision making unit and its advantage and disadvantage......................................9
4 Describe concept of decision making process for consumers and organization ..............10
TASK 4..........................................................................................................................................10
1 Develop business plan that support achievement of business objectives .........................10
2 Identify most appropriate marketing tools that meet business and customers needs. ......11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing management is a process which is used to identify what products and services
in which customers are interested and what strategies to be used for sale and communicate to
develop business among the costumers and target audience (Akter and et.al., 2016). This report is
based on “Coffee House” company which is planning to be established in United Kingdom and
that offer bakery products and different variety of coffee. The topics covered in this report are
Concept of marketing, marketing planning process, role of internet in modern marketing, how an
organisation identify new market opportunities, benefits of marketing management to customers
and how marketing management can improve their business performance.
TASK 1
1 Define the marketing concept
Marketing concept refers to the process through which it is describe that success of a firm
is depend upon efforts of marketing done by a company and value proposition which they are
delivering as compare to its competitors in the same target market (Doyle, 2013). In other aspect,
marketing concept is philosophy through which a firm analyse and evaluate their customers and
then make decision according to it, so they can satisfy their customers needs and wants of
customers in better way as compare to their competitors. In current time most of the firms adopt
marketing concept to understand their customers' needs, satisfy them, increase profit, maximise
sales and make decision accordingly to beat their rivals. Their are five type of marketing concept
which an organization can adopt and execute in their firm, they are - production concept, product
concept, selling concept, marketing concept and societal marketing concept.
2 Stages of marketing planning process
Marketing planning process refers to the steps that provide guidelines how to sell and
market products in the target market within a particular period of time by involving promotional
strategies. Coffee House adopt marketing planning process to make their business successful and
sustain it in future market, which is describe below:-

Illustration 1: Marketing Planning Process , 2018
(Source: Marketing Planning Process, 2018)
Mission:- In this, Coffee House first develop their action plan, mission and company's
objective to make their products successful in the market of United Kingdom.
Situational Analysis:- In this stage Coffee House will examine their current condition in
market by analysing and audit target market and doing SWOT analysis.
Marketing Strategy:- In this, respective firm will evaluate and develop marketing
objective and marketing strategies which can help them achieve overall company's objective in
an effective way.
Marketing Mix:- In this step, Coffee House will make plans and strategies on focussing
the marketing mix so that they target right audience and market and develop plan accordingly.
Implementation and Control:- In this step Coffee House implement their plan and
strategies and evaluate it as it is correct for the current market trend or not (Garcés, Rivera and
Murillo, 2012).
3 Difference between transactional and relationship marketing
Their are several difference in between relationship marketing and transactional
marketing which are describe below in context of Coffee House analysis:-
Basis Transactional marketing Relationship marketing
Focus In this organization's main focus is
on making new customers (Grant,
According to this, their major
focus is on customer retention.

2016).
Orientation Their main orientation is to
providing service features.
In this marketing, the orientation
is on the basis of customers
benefits.
Time Scale This is done for short time scale. Whereas it is created for long
time scale.
Customer service In this, a company emphasis on
customer service little.
According to this, company
emphasis more on customer
service.
Customer commitment In this, commitment of customers
are limited or less.When
compared to transactional
marketing, in it commitment is
high of customers.
Customer contact In this marketing contact of
customer is less to a company.
Whereas in this contact of
customers to a firm is high.
4 Difference between marketing mix planning for product based and service based organization
Coffee House analysis and evaluate the difference between the marketing mix planning
of products and services, which are describe below:-
Product Based Service Based
 Product based marketing means to
develop and organize marketing
activities which align and help to
promote and sell particular product that
is made for specific segment (Hazen
and Byrd, 2012).
 In product based organization 4 p's of
marketing mix are used for the
development of products that are
 Service based marketing refers to the
marketing of economic activities which
is offered by business to their clients
and customers for adequating
consideration.
 In service based company, 7 p's of
marketing mix are used for designing
and planing service that are product,
price, place, promotion, process,

product, price, place and promotion. physical environment and people.
5 The role of internet in modern marketing
To adopt right internet marketing strategy it is important for Coffee House because it help
them to be success in market by doing marketing and advertising their products and services they
can attract their customers, develop connections to customers and enhance sales (Kirchmer,
2012). In respective company internet play an essential role for marketing in modern way, which
is described below:-
 Through internet, Coffee House can increase their visibility in market and between
audiences. By the help of internet respective business can be visible to millions of
audiences at once with help of media of multiple digital media such as websites, blogs,
paid advertising, social media platforms etc.
 By this Coffee House able to do two way communication their customers through social
media channel, rating and review board and forums. Through it customers are also able to
connect directly to the respective company and company can also do follow up by using
email to keep in touch with them.
TASK 2
1 Outline market research system used in gathering and managing market research
Market research refers to process of collecting data and information which help them to
identify whether the market is favourable for company or not. Their are various type of market
research system or techniques which help organization, some major of them are evaluated by
Coffee House which is describe below:- Primary market research:- It is type of market research in which all information and data
is collected by company itself according to the objective of improve product, service and
functions.
 Secondary market research:- This method of market research dose not focus on
collecting information from the scratch but based on existing information from numerous
sources.

For Coffee House primary research system is more beneficial to collecting data and
information because by it they can get real and accurate information and feedback of their
products and services and then they can do change and innovation according the requirements.
2 Define stage of marketing research process
Marketing research refers to efforts of a company which are made to gather information
about their target market and customers (Manville and et.al., 2012). Coffee House marketing
research process to evaluate and analyse market, whose description is described below:- Define problems or opportunities:- In this stage, Coffee House define problems and
opportunities and determine information to solve that problems. This help respective
company to clarify overarching problems or opportunities such as how to develop and
launch new product in market. Develop research plan:- After identifying problems and its reasons the respective
company build research plan to solve or overcome it (McIntyre and Srinivasan, 2017).
The research plan made by Coffee House can be overwhelming to case because it also
involves methods and techniques which help firm to identify answer. Collect relevant data and information:- In this Coffee House Collect data by using
different techniques such as quantitate, qualitative, primary and so on which is relevant to
them. Analysis data and report findings:- In this respective company analysis and evaluate
data and information which they collect and make report to find some accurate and
appropriate outcome.
 Take action:- After analysing and evaluating the report and outcome Coffee House
develop action plan which is beneficial for them and help in enhancing their growth an
profit.
3 Collect market information to identify new products opportunities
When Coffee house current products and services are liked by customers and audiences,
then they should plan to introduce new product range for that they has to conduct market analysis
to identify opportunities for the new products (Park, Fujimoto and Hong, 2012). Steps taken by
respective company to collect market information are describe below:-

 The Coffee House can conduct research of their customers and competitors on various or
multiple level which help them in evaluating and analysing whether demand of products
and services are real and introducing new product is worthwhile or not.
 Coffee House can do customers segmentation for their new product range on basis of
age, income, occupation, place of residence, life style and so on. And after that they
design and plan for new products.
 Coffee House also has to identify their target market in which they identify for which
area or demographic they develop and create new products. When they decide it they
will develop the product which is preferable for customers of that particular market.
4 Identify new market opportunities
It is the responsibility of management of Coffee House to consider and evaluate new
business ideas and marketing opportunities and identify and select one of them which is worth
for them (Schuh and et.al., 2014). Through it an organisation can identify new market
opportunities, some major of them adopt by respective company are mentioned below:- Research customers and competition:- Coffee House use multiple level, to analysis their
customers and competitor which help them to analysis whether need and demand of
products and service are true and to expand in new market is worth for them or not. They
should identify their customers for new market on basis of age, gender, lifestyle, income,
place of residence and so on. The respective company also research about their customers
at new market.
 Get high level view of market:- For Coffee House it not sufficient to only analyse about
customers and competitors, they also need to evaluate and understand market as a whole
and potential of success in that new market (Wang and Feng, 2012). The respective
company can do market analysis by evaluating high level questions such as market size,
how quick market is expanding, numbers of buyers at new market, entry barrier at
market, bargaining power of buyers and so on.

TASK 3
1 Define strategic planning process
Strategies planning is refers to a process of organisation in which it define its strategies,
directions and making decision based on allocation of resources to continue strategy (West, Ford
and Ibrahim, 2015).
Strategic planning process has some steps by which an organisation can go through
following things to determine it:
 Vision- Direction for the organisation.
 Mission- What activity company is going to do and for whom.
 Goal- How to measure, guide and plan strategy to go where company wants to go or to
achieve goal.
If an organisation go through strategic planning process they can plan strategies and
implement it in effective way. The respective process include steps like developing mission,
objectives, situational analysis, strategy formulation, implementing it and control.
2 Outline segmentation, targeting and position process Segmentation:- Through segmentation Coffee House can divide market of potential
customers into group or segments which is based on different characteristics such as age,
gender, lifestyle, income and so on (West Ford and Ibrahim, 2015). The main aim of
respective company to do segmentation is to identify high yield segmentation that means
to identify that segment which is most profitable or have growth potential. Targeting:- It is second stage of market segmentation process, after identifying and
selecting appropriate customer to whom Coffee House want to sell their products and
services targeting will done. It involve segmenting market and identify which segment of
market is appropriate for respective company and determine products which they can
offer.
 Position process:- Position process is important for Coffee House because by it they can
identify and follow effective and sound marketing strategies in company. By using this
process the respective firm can identify and do positioning of production and services in
appropriate manner. It is a six step process and each step is employed or conduct to get
specific information.

3 Define decision making unit and its advantage and disadvantage
Decision making unit is a team of individual or collection of them which participate in
buyer's decision making process (Akter and et.al., 2016). Someone of them are most influential
and some of them are least. In purchasing decision making process an individual and decision
making unit has to play respective role such as user, influencer, buyers, deciders and
gatekeepers. Decision making unit is not stable, it gets change according to time and it may
change as an overcome of addition of another individual.
Everything has its own pros and cons as the decision making unit have some advantage
and disadvantage which are found by Coffee House while analysing are describe below:-
Advantage Multiple perspective:- In Coffee House the decision which make are positive because
they involve and allow their all employees to give their opinion which is based on unique
knowledge.
Disadvantage
 Collaboration can be time intensive:- While taking decision making Decision making
unit can be very time consuming process because it include large number of people who
come together and need to be agreed on a common point which is not easy and simple.
4 Describe concept of decision making process for consumers and organization
Decision making is the process done by decision maker through which they identify and
select alternative which is based on values, preferences and beliefs (Doyle, 2013). Every decision
making result in a final options which may or may not be accurate and prompt action. Decision
making process is useful for both customers and organisation.
Customer use decision making process while purchasing any products and services, so
that they can purchase effective and efficiently. For that they first do research about the product
and company. After that they compare the products to other products or competitors products.
Organisation use decision making process to analyse and evaluate market so that they can
take appropriate decision according to the situation and needs. In this they first evaluate the
market, make decision accordingly and implement it and evaluate outcome.

TASK 4
1 Develop business plan that support achievement of business objectives
Business plan is refers to the documents which contain information about new business,
its products and services, how they will earn money, so leadership and staffing, financial
planning, operational and functional model and many other things which are necessary for both
conduct operations and be successful (Grant, 2016). The Coffee House Develop business plan by
developing effective business plan which is describe below:- Research:- In this Coffee House it is responsibilities of management to do proper
research about the market, price, consumer demand and need and competitors so that they
can make effective business plan. So managers of the respective company do appropriate
and effective business plan that they can attract investors and financial institute. Determine purpose of plan:- Then they determine the purpose or objective of their
business plan which describe about the nature of business, sales and marketing and
financial background and so on. The responsibility of manager to develop business plan
which efficiently determine the objective and purpose of plan which is made. Create a Company name:- After deciding all thing the management decide company's
name which is unique and different from competitors and which attract customers. The
management decide appropriate and unique name for the company which is attractive and
influence in nature and which is easily understand and remember by customers or target
audience. Document all aspects of business:- The next step is to maintain all documents such as
expenses, cash flow and industry projection etc. which help company to attract and
convene investors and shareholders. Have a strategic marketing plan in place:- The respective company must develop certain
business plan which include strategic and aggressive marketing plan that involve certain
objective such as introduction of new product, enter new territories for company, boost
sales, cross sell, refine a products etc. (Kirchmer, 2012).
 Make it adaptable based on audience:- The company must prepare that type of business
plan which can be adopted by the audience and that is customer friendly. So that they can
easily attract the audience and investors for their company or business plan.

2 Identify most appropriate marketing tools that meet business and customers needs.
There are various type of marketing tools and techniques which are used by company to
meet business and customer needs, some major of them are mentioned below:- Traditional Media:- The Coffee House can use traditional media such as billboards,
banner, newspapers, magazines, television, radio and telephone directories. This tool
mainly focus on sales of one way push and it is costly marketing tool. Digital Media:- Digital media used for describing content which are made available for
using various forms of electronic communication that are possible with the help of using
new technology. The Coffee House can use digital media for the marketing purpose in
which they can use engine optimization, mobile marketing, interactive online
advertisement, email and online partnership such as sponsorship and marketing and so on
(Hazen and Byrd, 2012). Social Media:- It is an integral part of online as social websites and it is help in
developing and building brand image in proper manner. It will assist in increasing brand
visibility through developing and maintaining strong relationship with their desired
customers. It is subset of digital media and its main goal is to develop and create an
interaction and relationship with customers and products users by the help of internet,
respective company can use this tool to achieve and cover major audience.
 Promotional Item:- Promotional item include Boucher, business card, press kits,
websites, informational video and merchandise are used by Coffee House to do
advertisement and promotion about their products and services to their audience.
CONCLUSION
From the above mentioned point it can be conclude that to develop the successful
business management must have to develop a effective business plan and strategy. Their are
difference between transactional and relationship marketing and it is role of manager to identify
accurate one for their company. A company can use various type of tools to promote its products
and services to market.

REFERENCES
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