Detailed Marketing Mix Analysis: Costa Coffee and Starbucks Strategies

This report provides a comparative analysis of the marketing mix strategies employed by Costa Coffee and Starbucks. It examines the application of the 7Ps of the marketing mix: product, price, place, promotion, people, process, and physical evidence. The report begins with an introduction to both companies, highlighting their global presence and target markets. It then delves into a detailed comparison of their product offerings, pricing strategies, distribution channels, promotional activities, customer service approaches, operational processes, and the physical environments of their outlets. The analysis reveals how each company leverages these elements to achieve its marketing objectives, attract customers, and maintain brand value. The conclusion summarizes the key differences and similarities in their marketing approaches and discusses the implications of these strategies for their overall success. The report emphasizes the importance of the marketing mix in the hospitality industry and provides valuable insights into the competitive landscape of the coffee market.

Marketing mix is a tool used by an organisation to pursue or
meet its marketing objective in the target market. It includes 7
broad levels or aspects of marketing decisions which plays a
important role promotion and success of an product or service.
Place Costa coffee is operating
in nearly 3300 outlets
spread over in approx 31
countries of world. It
outlets are mainly found
at places where there is
high footfall or crowd
like shopping malls,
airport, etc. to attract
more customers. Costa
coffee also modify its
menu according to the
preference of country to
gain better customer
base.
Starbucks is
operating in 75
countries and its
product are
available through
company operated
stores, licensed
stores and also at
grocery stores and
supermarket
market chains like
Walmart, TESCO,
etc.
Price Premium pricing strategy
is used by Costa coffee to
maintain its brand value
and high quality. Its
pricing strategy are also
influenced by
competition level of an
country and price of
coffee also varies with
supplement added to it
such as extra chocolate,
cream etc.
Starbucks offers a
luxury and entirely
exclusive
experience to its
customers thus,
charges at least
25% higher value
for its value
brands. It also
make use of
premium pricing
registry to offers
best quality to its
premium
customers.
For better understanding and comparison of application of
marketing mix two hospitality organisation are selected which
are described below:
Elements
of
marketing
mix
Costa Coffee Starbucks
Product Costa coffee is very
famous for its wide
range of product
portfolio which includes
coffees, teas, hot
chocolates, cold drinks,
snacks, cakes and
pastries. The products
offered by costa coffee
is main driver of
business strategy to
gather more customers.
This organisation
believes in giving wow
moments to its
customers with its main
product coffee to have
long lasting impact on
its customers.
Starbucks offers a
range of product
which includes
coffees, tea and
other beverage. It
is famous for
quality of its
product and also
started offering
fresh food items
which include
different types of
snacks. It is
offering more
than 30 blends
and single origin
premium coffees
to attract more
customers.
Marketing Essentials
INTRODUCTION

Promotion
s
The promotion strategy of
Costa coffee does not rely
on advertisement through
TV or print media but it
make use of digital media
to promote its product. It
follows marketing strategy
of word of mouth publicity
from its customers as
Costa coffee not only
provide coffee but also the
wow experience. Free
samples of new product are
provided to attract
customers for that product.
Use of promotional
campaign like Shake Up
Summer are also organised
to promote cold coffee
products.
Starbucks make use of both
traditional and digital channels
for promotion of its products.
Consistency in their branding
and content has made their
marketing strategy more
effective and different channels
of advertising are used for
communication of feature of
product and services.
People Costa coffee is highly
focused towards its
customers and other
stakeholders. Employees
of Costa coffee treats every
customers with high
regards and friendly
behaviour to make its
customers more
comfortable. Training is
provided to employees to
properly deal and
communicate with variety
of people.
Starbucks is having more than
200000 employee across the
world and they play a important
role ion success of this
organisation. Starbucks treated
its employees as partners and
timely training is provided to
them to develop better skills
which helps in polite and
friendly interaction with
customers.
Process Standard
working
procedure is
followed by
Costa coffee
around the
world. Nice
sitting
arrangement,
beautiful
entrance outlet,
etc. are
provided to
customers.
Costa coffee
makes sure that
products asked
by customers
are offered to
them in
minimum time
and with high
quality
maintained.
Range of
mechanism are
used for billing
like online
payment, cash
payments, credit
cards, etc.
Starbucks make
use of efficient
channels for
delivery of
coffee and other
products. For
this purpose use
of innovative
technology is
made which
also helps in
maintaining the
premium
standards of this
brand.
Physical
evidence
Costa coffee
uses its logo on
the cups that
are served to
the customers
and different
outlets of the
Costa coffee
are the physical
evidence of this
company.
The vast range
of stores of
Starbucks, its
ambiance,
coffee mugs
with logo
printed on it,
paper napkins,
etc. are
effectively
cresting
physical
evidence of
Starbucks
reflecting
premium-ness
of this brand.
Marketing mix provide complete information and
planning about different business strategies and plans
used for different factors like price, place, etc. which are
most important for achievement of business objectives.
Conclusion