Detailed Report: Hospitality Marketing, Costa Coffee Analysis and Plan

This report provides a comprehensive analysis of hospitality marketing, using Costa Coffee as a case study. It begins by outlining the key roles and responsibilities of marketing functions within an organization, focusing on customer identification, safety, and retention. The report then examines the interconnectedness of marketing with other departments like finance, human resources, and IT. A significant portion is dedicated to comparing the marketing mix of Costa Coffee and Starbucks, evaluating product offerings, pricing strategies, and promotional activities. Finally, the report culminates in the creation of a basic marketing plan for Costa Coffee, designed to meet specific marketing objectives. The report offers a detailed understanding of the application of marketing principles in the hospitality sector.

Hospitality Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1: explain the key role and responsibilities of marketing functions in an organization...........1
P2. Examine how roles and responsibilities of marketing which is related in wider context of
organisation. ...............................................................................................................................3
P3 Compare the ways in
which different hospitality
organisations apply the
marketing mix to the..................................................................................................................4
P4 Produce a basic
marketing plan for a
hospitality organisation
to meet marketing
objectives....................................................................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is an activity and process that helps business to promote and sell its product
and services. Marketing is an set of all the activities that undertake in order to achieve
competitive advantages and gain more profitability. This function of the business promote the
business in the market and increase its value in industry. Whereas hospitality marketing refers to
the all different sectors of hospitality and how they work in order to gain success and fulfil the
needs of the customers. Hospitality marketing is focused on the level of customer satisfaction
rather than making profit for the firm. There are different functions of hospitality marketing that
help the organisation in achievement of the goals and objectives. The Costa Coffee(Aydin,
2020) is selected as an hospitality company in this report, Costa is British coffee house chain,
and its headquarter is in Dunstable, England. Company was founded in 1971, by Bruno and
Sergio bothers. Company offers various types of food and beverage to their customers. This
report includes information about different key role and responsibilities of marketing function
within an respective organisation and interlinked between various marketing and other functions
of company. Furthermore, there are comparison between two hospitality business and how they
use their marketing mix. In the last it includes marketing plan for the respective hospitality
organisation.
MAIN BODY
P1: explain the key role and responsibilities of marketing functions in an organization.
The main objective of marketing function is to develop an understanding relationship
between the business and its customers that benefits both customers and the organisation. These
efforts of marketing helps in making the business of hospitality more profitability and make the
customers of the company more loyal. Various marketing function of Costa Coffee (Bilro,
Loureiro, and Guerreiro, 2019) helps its business to attract more customers. Below are various
roles and responsibilities of marketing that helps Costa Coffee to grow and make their
customers satisfy.
Role of marketing functions in Costa Coffee:
 Identify customer: The main role that marketing function of Costa Coffee play is
identification of all the needs and wants of the customer form the organisation. Marketing
helps in analysing all the expectations of it target customers form the respective company
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and how it can be fulfilled in order to make more loyal customers in the organisation.
Marketing also analyse the target market for the Costa Coffee so that they can meet the
needs and wants of the customers. Improvement in the services provided by the
hospitality organisation is the main role that marketing play in order to make organisation
more successful and profitable. Thus, marketing functions of respective organisation
helps in better achievement of customers experience form the organisation and provide
them better services and food.
 Safety customer: marketing function of the (Dewnarain, Ramkissoon, and
Mavondo,2019) Costa Coffee ensure that the company make right food and beverage
products according to the needs and wants of the customers. Organisation ensure that
their customer get food and drinks with more safety and hygiene so that customer get
more satisfaction form the various offerings. Market demand of product and services is
also analyse by the company so that they can provide all the services according to the
customers demand. Analysing target market of Costa Coffee is main objective of the
marketing of that they can analyse actual demand of the food products at right time and
right place. Thus marketing function of the company helps in analyse safe market for the
company and target customers.
 Retain customers: Marketing helps in giving customers reason to stay loyal towards the
organisation. Costa Coffee fulfil all the needs and expectations of the customers and give
them best experience from their services and food so that customers stay loyal towards
the brand. Marketing function play role in identify the new opportunities for the business
so that they can grow better and attract more customer. In the context of Costa Coffee
company is using new technology in their services that help them to attract more
customers and increase the needs and wants of them.
Responsibilities of marketing function in Costa Coffee:
 Product development: The main responsibility of marketing function to analyse the
market demand and than make decision about the new product development or
improvement in the existing products and services. In the context of (Elsharnouby, and
Elbanna, 2020) Costa Coffee, the marketing function of the organisation helps in
identification in the various market demands so that coffee house can make improvement
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in its existing food and drinks products and also can introduce new product to attract
more customers towards the brand.
 Planning: Proper planning of product development and other functions is an main
responsibility of the marketing function. It helps in better management of the all the
activities and how the activities in organisation can be done in most effective way. In the
context of Costa Coffee, (Gursoy, and Chi, 2020) for new product development proper
panning is very important to make an effective outcome of new product in the market.
Proper planning of all the resources helps the organisation to make effective product
according to the demand and expectations of the customers. Thus marketing function of
the company helps in proper planning of new product development and increasing the
level of customer base.
 Promotion: It is an most important part of the company to introduce its new product and
services in pre existing market. Promotion of product and services is main responsibilities
of marketing function. It helps in providing better information to the customers about the
various product and services. In the terms of Costa Coffee, promotion function of
marketing helps the organisation to make more customer and increase profitability.
P2. Examine how roles and responsibilities of marketing which is related in wider context of
organisation.
In the context of Costa Coffee the marketing function of the organisation play various roles and
responsibilities that help the firm to grow in the market and increase its market shares. There are
many function in the organisation that helps in operation of the better growth and profitability in
the market. The different function of restaurant (Gustavo, 2019) is connected with marketing and
helps in better functioning in the market. The different departments of the company is interlinked
with market and helps in better functioning. Below are detail explanation of all the different
departments of the Costa Coffee and their interrelation with the marketing function.
 Marketing and Finance: In the terms of Costa Coffee marketing function of the
organisation helps in understanding all the marketing trends in food and beverage
industry and provide information about the target market so that organisation can make
effective marketing strategies that help them in better growth and increase the level
profitability. On the other hand finance department of the firm ensure the flow of cash in
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all the department of the company. Finance department also ensure all the inflow and
outflow of the fund should be done in proper manner. Thus, marketing department helps
in increasing the level of profitability of the company so that inflow and outflow of the
funds can be done in proper manner. Finance department provide funds to marketing
department so that the functioning of marketing can be done in proper manner. So both
the departments of the organisation are interlinked with each other.
 Marketing and Human Resource: In the terms of Costa Coffee (Inanc–Demir, and
Kozak, 2019) the human resource is one of the most active and effective department of
the organisation that help in better functioning and providing more satisfaction to the
customer. Human resource department handle all the production and services of the Costa
Coffee. Whereas marketing department also handle by the human resource by providing
skilled and talented employee that can handle marketing department in most effective
way. Thus human resource and marketing department interlinked with each other and
work for better achievement of goals and objective of respective company. Together
working of both the department is important for increasing the customer base and provide
them more satisfaction.
 Marketing and IT: In the terms of Costa Coffee, the information and technology
department of the company handle all the machinery and technical equipments of the
company and provide smooth working to the organisation staff. It also help the
organisation by providing all the information about the new innovation in the technology
of the competitors and how they can increase the level of customers base by using
innovation in the technology. Whereas marketing department operates its functions
according to the information technology so that it can improve its marketing. IT
department helps in market segmentation of the company. Thus the working of both the
department is important in order to fulfil the needs and wants of the customers base.
Thus, all the department of Costa Coffee (Inanc–Demir, and Kozak, 2019) is interlinked with
the marketing and its functions. Different function of market is connected to different
departments of organisation and their together working is important in order to achieve goals and
objectives of the company.
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P3 Compare the ways in
which different hospitality
organisations apply the
marketing mix to the
marketing planning
process to achieve
business objectives.
Marketing mix refers to the plan that marketers make for the better understanding about
the market and make various strategies about the marketing. In the traditional marketing mix
there are 4Ps are included such as product, price, place, and the product. These are the important
areas of marketing that helps business to grow in the market. This Ps of marketing helps in
understanding about the organisation and its position in the market and which strategies are used
by marketer to gain competitive edges. But in the current marketing scenario the marketing mix
is extended now there are 7Ps in the marketing mix. People, process and physical evidence is
expand in marketing mix. In the context of Costa Coffee, (Koc, 2019) the 7Ps of marketing
provide better insight to the business of the respective company also it helps in better
understanding about the different techniques involved in marketing teams and increasing the
level of profitability.
There are comparison between the two hospitality organisation to understand their
different marketing strategies and there purpose. In this report there are comparison between
Costa Coffee and Starbucks. Below are detail explanation of comparison between marketing mix
of Costa Coffee and Starbucks.
Marketing mix comparison between Costa Coffee and Starbucks:
Basis Costa Coffee Starbucks
Product The main product of the organisation if coffee that
attract more customers towards the brand and in
the coffee company has many verity according to
the choice and preferences of their customers. They
offer verity of coffee and other beverage items that
increase the rate of profitability. Costa Coffee
The company is famous for
offering best coffee and
beverages in the market.
Coffee is main product of
Starbucks that attract more
customers towards the brand.
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(Koc, 2020) also offers some food items with the
coffee so that their customers can have the both
food and beverage from the organisation. Some
products of respective organisation are hot
chocolate, special tea, cold drinks, cold coffees,
sandwiches and other supplementary food items.
The organisation also sell
coffee related accessory and
equipments. There are various
types of coffee and other
beverage that company offer
to attract the customer and
increase the profit share in the
market. The main products
offers by the company is
coffee, Italian style beverages,
cold blended beverages. There
are many different flavours of
coffee and beverages that are
offers by Starbucks.
Price Company offers products at premium prices
because the high quality of food and beverages in
the organisation. Costa Coffee believes that they
can give the best coffee and supplementary food
items to their customers and increase their
customers base. High quality product make their
price strategies more unique and profitable from
the other competitors. Thus the company is more
focused on the quality of product and services
rather than the price, and believes in giving best
customers experience.
The company targets high
level income group of
customers and offer its
product and services at higher
prices as comparison to other
market prices. But (Lin,
Chi, . and Gursoy, 2020)
Starbucks now focused on
maintaining low prices for its
most popular beverages so
that they can make more
customers and increase
customers base.
Place The company has great presence over the British
market and provide coffee at 1000 stores. But the
The main coffee holding
company is located in Staten
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presences of the Costa Coffee in Asian country is
very much limited. The main place where the
company operates malls and its stores so that they
can attract more customer.
The presence of Costa Coffee is only in the top
Urban cities. It operates in approx 21000
restaurants of the UK, in India the business of the
company is limited but now its growing.
Iceland. There are many
countries where company has
expanded its business.
Company has 33000
warehouse and clubs in US
and 5,500 stores in
international markets.
Promotion The company is premium brand and does not rely
on the advertisement on TV or print media. The
most important marketing strategies followed by
Costa Coffee is word of mouth by its customers.
They provide best services and products by which
customers of the company become loyal
customers. One more (Lynn, 2019) strategy used
by the company is they provide sample products to
the customers so that they can give feedback to the
company and increase the rate of profitability.
They are also focused on digital media marketing
that helps the company to reach to the customers
over all the globe. They also have promotional
campaign named ShackupSummer.
Starbucks has started the idea
of collection of feedback from
the customer and make their
products and services more
effective for them. The
reward program in the
company also helps in better
promotion of the beverages.
People The company is focused on its employees and
people on over all the world. They have more than
2 million employees. Company make their
employees trained in order to gain highly
professional skills and make than more capable to
gain competitive advantages for the company.
Costa Coffee treats their every customers with
highly regards and give them best experience form
There are various people are
connected in the functioning
of Starbucks. The employees
and supplier of the raw
material are the main people
that are connected in the
services and products of the
company.
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the products and services.
Process Costa Coffee follow standard procedures for the
most of the big coffee house in the world. Each
outlet of the company is well maintained and their
infrastructure make customers more attracted
towards the brand. The main process follow by the
firm is to make their customers comfortable in their
organisation and arrange various arrangements that
make their customers more happy about the
company.
The company primarily
process through joint venture
and licensing arrangements of
the company. They follow the
process that have an effective
out come of product and
services.
Physical
evidence
The brand identity and outlets are the main
evidence of the company that attract customers
towards the brand. The major part of Costa Coffee
business is established in UK that is one of the
most outlet that impact its business in over all
world.
The main physical evidence
of company is its brand image
in the market that helps in
better functioning. The
famous logo of company is
also an evidence by which
customers get attracted.
P4 Produce a basic
marketing plan for a
hospitality organisation
to meet marketing
objectives.
A marketing plan is an outlet that helps company to make proper arrangements of market
and make various strategies that help in growth of (Mejia, 2019) company. Its an overview of
company techniques and marketing styles that help in better analysis of future opportunities.
Below is detail explanation of marketing plan of Costa Coffee:
 Executive Summary:
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Costa Coffee was founded in 1971, by Bruno and Sergio bothers as an wholesale operates
roasted coffee for the caters and special coffee restaurant in UK. Company has 3,401 stores
across 31 countries. The employees turnover of company is 18,412, in over all world. Company
provide coffee and supplementary food products to its customers. In this company is introducing
new Natural Coffee with different flavours.
 Mission of Costa Coffee: the mission statement of company is “to save the world from
mediocre coffee”
 Vision of Costa Coffee: “To be the worlds most loved coffee brand”
 Objectives: The main objective of company is to provide Natural coffee to their
customers and provide them better livings. They are now(Murphy, Gretzel, and
Pesonen, 2019) planning to offer more improved coffee rang so that they can become
more successful in the coffee world.
Strategies:
 Segmentation: It is the process by which Costa Coffee make their target groups into
small parts that help them in better understanding of the customers which the similar
choice and preferences. Company is choosing people with more healthy mind set such as
youngsters and adults.
 Targeting: It is the process by which the company analyse its target audience for the new
product and services Costa Coffee is focusing on the moderate income group people so
that they can attract more customers.
 Positioning: Costa Coffee can use online advertisement for the new products so that
customers can know about the Natural Coffee of the company.
Tactics:
Product: Costa Coffee is introducing new Natural Coffee with many more flavours, that
provide more testy and healthy natural coffee for the customers. That make customer more
satisfy.
Price: Company is providing this new coffee on moderate price so that they can make
more customers and provide more satisfaction to their customer. This strategy can help the Costa
Coffee to make huge customer base for new coffee brand.
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Place: Costa Coffee is providing this coffee at all the stores in over all world so that
customer can make it more profitable and (Prayag, Hassibi, and Nunkoo, 2019)increase the
customer base.
Promotion: company can use digital marketing for the promotion of product and services
and increase the level of profitability.
CONCLUSION
From the above information it can be summarise that marketing function of the organisation
helps in better planning and organizing all the resources of the firm and promote its products and
services in the market. Whereas hospitality marketing focus on the better customer satisfaction
and improvement in the all services that make customers loyal towards the brand. There are
various roles and responsibilities marketing function play in hospitality business to make more
customers. Different departments of company are interlinked marketing department that helps in
better functioning of the company. Different hospitality business are compared and different
purpose that are applied on marketing mix. In the last the marketing plan of the company helps in
making better strategies and develop business.
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