Digital Marketing Report: Strategies and Analysis of Costa Coffee

This report provides a comprehensive analysis of Costa Coffee's digital marketing strategies. It begins with an overview of the digital marketing landscape, comparing online and offline marketing concepts and identifying key consumer trends driving digital marketing growth. The report then explores the digital tools and hardware available to marketers, contrasting them with traditional physical channels and examining the development of e-commerce and digital marketing platforms. A significant portion of the report focuses on digital marketing planning, including the SOSTAC model for building multichannel capabilities and the application of omnichannel marketing strategies. The report also delves into techniques, performance metrics, and actions that can be taken to improve digital marketing performance, such as web analytics and key performance indicators. The analysis covers Costa Coffee's use of social media, e-commerce platforms, and web analytics to enhance its brand presence and reach its target audience, especially in the context of the COVID-19 pandemic. The report concludes with actionable recommendations for optimizing digital marketing efforts.

Digital Marketing

Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
Overview of digital marketing landscape and comparison of online and off-line marketing
concepts..................................................................................................................................3
Key consumer trends and insight which are fuelling growth of digital marketing................3
Task 2...............................................................................................................................................4
Digital tools and hardware’s a live available to marketers in contrast to bricks and mortar and
other physical channel............................................................................................................4
The development of e-commerce and digital marketing platforms........................................5
Task 3...............................................................................................................................................5
Digital marketing planning strategy to build multichannel capabilities.................................5
Omni channel marketing........................................................................................................6
Task 4...............................................................................................................................................7
Techniques and performance metrics and digital marketing..................................................7
Actions to improve performance in digital marketing...........................................................7
Conclusion.......................................................................................................................................8

Introduction
Digital marketing refers to a form of marketing various products and services which are
including different electronic devices. There are a number of different social media platforms
and online websites which are used for digital marketing. The following report consists of digital
marketing strategies used by Costa coffee which is a British coffee house chain and also
subsidiary of the Coca-Cola company (Deiss and Henneberry, 2020). The following report
consists of comparison between off-line and online marketing concepts along with various
consumer trends and insights. Development of e-commerce and Omni channel marketing is also
described in the report. Various evaluation and measurement technique along with actions which
can be used by organisation to enhance their performance and digital marketing are also
discussed.
Task 1
Overview of digital marketing landscape and comparison of online and off-line marketing
concepts
Digital marketing provides organisation with a number of different platforms such as
websites, digital newspapers, search engines, social media and so on through which they can
successfully promote their products and services. Costa coffee has evolved from traditional
marketing technique to various techniques of digital marketing with the help of which they are
successfully promoting their brand. They are using a number of options available to them which
include different social media sites through which they can successfully market their products.
Organisation is also making use of digital economy and taking online orders through which they
can enhance their sales as well (Nikunen and et. al.,2017). There are a number of search engines
which are providing information about Costa coffee and the customers can also search for the
nearest outlet of the brand available to them. Along with this the main website of the
organisation provides customers with various options through which they can assess the products
and services of the organisation. Use of social media is enabling them to grow their brand among
Millennial. Reposting and retweeting on various social media platforms such as Twitter,
Facebook and Instagram have enhance their sales and brand value.

Key consumer trends and insight which are fuelling growth of digital marketing
There are a number of factors which have resulted in growth of digital marketing. Below
mentioned are some of such factors:
 It is often seen that people are now using smartphones. Smartphones can be easily
accessed by people and all the web content is shown on them. This has made it more
convenient for consumers as well as organisation to use digital marketing.
 It is often seen that people are now spending more time online. There are a number of
different social media platforms such as Instagram and Facebook which are consuming
most of the time of people and through this digital marketing are growing.
 There are a number of options available to consumer when they go out for buying. Using
digital marketing consumer can easily compare a number of different products rather than
going to the physical store and comparing them (Key, 2017). It is convenient and easy
way of marketing.
 There are a number of different reviews and feedbacks provided by users of different
products and services online. This will help an individual when they are looking for
certain products and due to this use of digital marketing by organisations as well as the
consumer is increasing successfully.
 Along with this it is also seen that rise of big data, analytics, chat bots and technology is
driving consumers towards different products and services. Due to this rise of technology
digital marketing is getting a number of platforms and growth of digital marketing as
possible.
Task 2
Digital tools and hardware’s a live available to marketers in contrast to bricks and mortar and
other physical channel
There are a number of different tools and hardware which are providing the marketers with
platform to use digital marketing successfully. Some of these tools are mentioned below:
Search engine optimisation: Search engine optimization is a process through which
improvement of quantity and quality of web traffic to a webpage is done. Costa coffee can
successfully use this in order to make sure that they are providing various information required

to their consumers successfully. It is a great tool used by organisations to market their products
and digital media.
Social media management tools: Social media tools are a good way through which Costa coffee
can easily reach out to their consumers. Most of the consumers are spending their time using
social media platforms and organisation can use their own web page in order to demonstrate the
products and services they provide into consumer (Confos and Davis, 2016). It is a great and
convenient way for consumers as well as organisation to reach out to their potential customers.
It is often seen that using these tools enable marketers to successfully promote their
products and services. When comparing these tools to various tools which are used in physical
channels such as stores, seminars, speaking arrangements and markets digital media tools are
often cheap. It is easy for consumers to use these tools in digital media and this does not require
much time. On the other hand use of physical tools require huge investment of time by marketers
along with cost.
The development of e-commerce and digital marketing platforms
There are a number of e-commerce platform which are providing great help to digital
marketing. Organisations are successfully using all these platforms in order to make sure that
they can reach consumers throughout the world. Some of such platforms are Amazon and eBay.
Amazon is the largest company throughout the world which is providing e-commerce facility to
the consumers. This is a great development in digital marketing as a number of buyers and
sellers are meeting under the same platform making the deals they require (Hanlon, 2019). It is a
convenient way for organisations as well as consumers to use this website and meet all the
requirements.
There are also development of various new digital platforms like Airbnb.Use of digital
marketing is now done in every sector and every industry. Earlier it was just based upon retailing
sector but now hospitality sector are also providing digital marketing techniques and consumers
can book their stay in various hotels along with their travels with websites. This is a great and
convenient way for making bookings as well as payment.

Task 3
Digital marketing planning strategy to build multichannel capabilities
There are a number of organisations who are using multichannel capabilities. Use of
multichannel capabilities include using more than one platform in order to sell products. Costa
coffee is also using digital marketing as well as traditional ways of marketing (Dwivedi and et.
al., 2020). SOSTAC model will successfully help to understand and build multichannel strategy
for the organisation. It is required by the organisation to understand the situation which can be
set as situation analysis. The current situation for Costa coffee is Covid 19 pandemic through
which it have to deal. After the analysis of situation organisation are required to state their
objectives for which strategies are to be made. Objective of the organisation is to successfully
sell their products in this pandemic as well. In the next step strategies will be created along with
various tactics in order to make sure that company can achieve their objectives. Various actions
which are required to be taken by Costa coffee are developed and after this they require to make
sure that they are successfully controlling the actions. Costa coffee needs to develop a
multichannel strategy through which they can successfully sell their products in physical stores
as well as digital marketing stores. Due to the effect of COVID-19 the physical outlets are not
bringing required results for the organisation and the company is majorly focusing upon its
online sales. It is a great way for organisations to reach out to their customers providing them
facilities and safety of their health as well.
Omni channel marketing
Channel refers to a Cross channel strategy through which organisation including
experience of their uses and building better relationship with them. They are working in a
number of communication channels through which they can provide their services and products
to the consumer successfully. Costa coffee can also use Omni channel in order to make sure that
they are providing the services to consumers in a number of platform (Dodson, 2016). RACE
framework can be successfully used in order to plan and develop a strategy through which Costa
coffee can reach out to the consumers.
Reach is the first step in which organisations are required to grow their audience. This can
successfully do it while they are using a number of different media platforms.

The next is act under which they are required to make interactions, subscribers and also
leads. This will help the organisation to understand the potential customer and act according to
the potential customers’ needs and requirements.
Convert is the next step in this strategy under which Costa coffee is required to make
sales online or off-line. This is a great way in which the potential consumers of the organisation
are converted into actual consumers (Chaffey, 2019).
Engage is the last step in which it is required by the business to make sure that they are
continuously encouraging the repeat buying and selling between same consumers. It was
successfully help you organisation to make sure that they are making loyal customers and
retaining them with the organisation for a longer period of time.
Task 4
Techniques and performance metrics and digital marketing
Web analytics is a technique which is used by Costa coffee in order to make sure that they
are effectively using digital marketing and controlling the performance. Web analytics refers to
measurement of various data which is collected out of the web which will help in making
optimised use of the webpage. It is required by Costa coffee to make sure that they are
successfully using this process in order to measure the web traffic on their webpage and use
different business tools which will enable them to improve the website and its effectiveness.
Web analytics is successfully used by organisation in order to make sure that they are
continuously changing their webpage. This will also help them to understand the requirements of
the consumers along with dividing their consumers into various basis. This may include
geographical, age, income, social groups and so on.
Key performance indicators are also used by Costa coffee in order to understand the
performance of the digital marketing. Some of the major key performance indicators which are
used by the organisation include revenue growth, income sources, profitability over a time and so
on. It is required by organisation to successfully used web analytics in their KPI (Chaffey and
Smith, 2017). Using both of these together successfully will help the organisation to measure the
performance of their various indicators after which they can successfully monitor, analyse and
optimise various user behaviours on their website. The web analytics will also help to reach all
the marketing goals through operations conducted on website by the website manager.

Actions to improve performance in digital marketing
There are a number of ways through which organisation can successfully improve their
performance and digital marketing. Some of the steps to be followed by Costa coffee are
mentioned below:
 The organisation can successfully start spending upon getting attention from social media
influencers. They can also tie up with these influencers who will successfully help them
to reach out to the maximum possible consumers. These are usually the followers of these
influencers on their different social media platforms.
 The company needs to spend more time on making their web page more attractive for
their consumers. Along with this they also need to keep it updated so that consumers can
always find something nee when they are visiting it. It is a great way to keep up with the
expectations of consumers as well as with the trends that are going on in the market.
 Company can make use of more than one platform to reach out to their consumers. There
are a number of social media platforms such as Facebook, Twitter, Instagram and so on.
Apart from this they can also develop their own mobile applications which are a great
way to reach out to consumers wherever they are. They can make their application
friendly over a number of differ devices such as smartphones, tablets and systems. It will
allow convenience of consumers and more loyal customers for the organisation success.
Costa coffee can also take steps to spend more amounts on their online platforms.
Development of platforms is required so that more experts can be hired by the organisation to
successfully work upon their digital media content. They need to use more effective content
which will help them to successfully achieve all their objectives and attract a number of
consumer bases towards them enhancing profitability of business.
Conclusion
With the help of the following report importance of digital marketing for an organisation can
be seen. It is necessary that cost of office successfully using digital marketing concepts in order
to make sure that their services and products can reach maximum number of customers. It is also
a great way to enhance the brand value and brought popularity of an organisation. The company
can use all the strategies to make sure that they are providing a competitive edge in the market
and sustaining in the market for a longer period of time. There are also a number of different

strategies which are concluded in the report which can be used by Costa coffee in order to make
sure that they are achieving all the required objectives of the organisation successfully.

References
Books and Journals
Chaffey, D. and Smith, P.R., 2017. Digital marketing excellence: planning, optimizing and
integrating online marketing. Taylor & Francis.
Chaffey, D., 2019. Digital marketing. Pearson UK.
Dwivedi, Y.K. and et. al., 2020. Editorial introduction: Advances in theory and practice of
digital marketing.
Hanlon, A., 2019. Digital marketing: strategic planning & integration. SAGE Publications
Limited.
Confos, N. and Davis, T., 2016. Young consumer-brand relationship building potential using
digital marketing. European Journal of Marketing.
Key, T.M., 2017. Domains of digital marketing channels in the sharing economy. Journal of
Marketing Channels, 24(1-2), pp.27-38.
Nikunen, T. and et. al.,2017. Micro-Enterprise's Digital Marketing Tools for Building Customer
Relationships. Management (18544223), 12(2).
Deiss, R. and Henneberry, R., 2020. Digital marketing for dummies. John Wiley & Sons.
Dodson, I., 2016. The art of digital marketing: the definitive guide to creating strategic, targeted,
and measurable online campaigns. John Wiley & Sons.