Strategic Marketing Report: Costa Coffee's Kenyan Market Entry

This report provides a strategic marketing analysis for Costa Coffee's planned expansion into the Kenyan market. It begins with an executive summary and introduction outlining the importance of strategic marketing for business growth and market entry. The report delves into the adaptation and standardization of the marketing mix's 7 Ps (Product, Price, Place, Promotion, People, Process, and Physical Evidence) to determine the most effective approach for the Kenyan market. The report then examines the Customer-Based Brand Equity (CBBE) model, including brand identity, meaning, response, and resonance, to build a strong brand image and customer relationships. Furthermore, it explores integrated marketing communication methods such as digital marketing, online platforms, and sponsorship to effectively reach and engage the target audience. Finally, the report discusses methods for measuring the success of the marketing strategies, emphasizing the importance of profitability and customer satisfaction. The report recommends adaptation strategies, particularly for product, people, process and physical evidence while suggesting standardization for promotion, to create a successful market entry and establish a strong brand presence in Kenya.

Strategic Marketing

Table of Contents
EXECUTIVE SUMMERY..............................................................................................................3
TASK 1 ...........................................................................................................................................6
Adaptation and Standardisation of Marketing Mix ....................................................................6
CBBE Model...............................................................................................................................8
Integrated Communication Mix and Methods ...........................................................................9
Measure of Success ..................................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

EXECUTIVE SUMMERY
This report is all about the Strategic marketing of the company. Costa Coffee have a plan to
introducing their business in Kenya. Costa Coffee prepare various types of Coffee and its flavours and
famous for the variety of coffee all over the world. Company is about to launch their specific roasted
coffee so that company will do good business in Kenya. Previous report discussed about the strategic
marketing strategies and use PESTLE model to analyse the external environmental factors of Kenya.
The main purpose of this study is to recommend some strategies through which company easily
establish their business in Kenya market.
To accomplish this target, this report discussed all the 7 P's of the marketing mix and suggest that which
strategy is best of the Costa Coffee. Company mostly is adaptation method to introduce their products.
Through CBBE model, company easily connect with costumes and establish a strong relationship
with them. All these four stages will give positive impact on the company. Through 3 integrated
marketing communication methods company easily communicated with the customers. This report also
discussed about the methods to measure the success. Profitability is the best approach to measure the
success of the company.

INTRODUCTION
Marketing is a essential part of the business. Without marketing business will not able to promote
and sell products very effectively. With help of strategic marketing, companies are able to run their
business in a smooth and effective manner. Strategic market is responsible to differentiates the company
itself from their competitors through capitalising their strength so that company can provide a good value
of products as compare to their rivals. It also helpful to start new business in new market. This report is
deal with Costa Coffee that is a United kingdom based company and doing their business in other foreign
countries. Costa Coffee want to expand their business in Kenya and also have a plan to promote their
products in Kenya. This report is deal with launch products in a new market and so this report discuss the
marketing mix and analyse the adaptation and standardisation of the products in new Kenya market and
also evaluate the CBBE model and identify that how your customers will create and manage a effective
brand in new market. Apart from this, this report also analyse the 3 communication methods through
which company can promote their products and also determine that how company improve the marketing
for future purpose.
TASK
Adaptation and Standardisation of Marketing Mix
Marketing mix defines as a set of core action and techniques that business can use for
promotional purpose to promote brand and products in the new market. With the help of marketing mix,
company can put the correct product in the right market at the correct time and effective price. Costa
Coffee about to expand their business in Kenya so company are looking forward to determine the
adaptation and standardisation of marketing mix 7P's in new market (Bruhn and Schnebelen, 2017).
Adaptation - For expand the business internationally , companies are using international
marketing and its strategies for the marketing mix purpose in which company promote and expand their
products in international market and target it. The purpose of this strategy will add some cost but so that
company attract the large number of customer and increase their market share rate.
Adaptation refers as a modification of products so that it will meet the local and basic requirement.
Standardisation - In Standardisation, products are exactly same. Not a specific change and
modification exist in this. Company follow the strategy like “one size fit for all” and after that company
easily enter in the foreign market and gain it access.
Costa Coffee successful enter in a new country that is Kenya and after this important for the
company to create marketing strategies that help the company to effective enter in a new market. Now
company need to analyse that either company follow adaptation or standardisation tat discussed below-

Product – Costa coffee company going to introduce coffee in Kenya. Costa coffee about to use
adaptation method for their products. Company cover all the whole range and aspects of the products and
introduce in a new market according to the country market situation. The main aim of costa coffee is to
manage future risk so that company sell their products on the basis of Kenya market according to the
economic , social cost and its environment so that people of Kenya easily buy coffee (Cerrato, 2018).
Price – After covid- 19, situations become complicated. Every country focusing to improve the
economical situation of the country to deal with this country increase the rate of pricing policy. The
pricing strategy of the countries are about to do some modification on the pricing and also balance the
basic price of manufacturing and establishments. Costa coffee adopt the pricing strategy according to the
company economical situation so that company could accomplish the market target and also generate
high profit.
Place - Costa Coffee main purpose to establish a market successfully in Kenya and also company
prepare to shift the coffee distribution channel through online. Costa Coffee use the adaptation method to
for their products place purpose. Company adopting online receive and deliver order of the products.
Promotion – It is essential that the company promote their products in that way so that company
will reach large number of people. Costa coffee is follow standardisation method for promotional
purpose. Costa coffee is a big brand and doing business most of the foreign countries. The people of
Kenya are very active on social media so company will promote their products through digital media in
Kenya. Costa Coffee need to use some online platforms like Facebook, Twitter, LinkedIn , Instagram etc.
and also advertise on TV and newspaper so that company product will reach massive people ( Çifci, et.
al., 2016).
People - Costa Coffee consider adaptation method for people purpose. Company expand their
market in Kenya so it important for the company to appoint some Kenya people as an employees those
are very familiar and know each and everything for Kenya people and market so it will become easy for
the company to develop the competitive plan and strategies. Company must appoint local people of
Kenya and provide them continuous and advance training so that employees help to achieve company
targets.
Process - Costa Coffee follow adaptation method for the process of the company. Costa coffee
want to reach numerous people of Kenya so company adapt a effective an influential way to conduct the
all operations of the company. So that company smoothly process all the manufacturing, production and
selling activities. Adaptation is compulsory in the case of Costa Coffee.
Physical Evidence – Costa Coffee consider adaptation method for the physical evidence of the
company. Company start to sell their products in a new market so its important to consider the and also

design where customers will interact with the company and buy products. Physical environment is
playing a prominent role for the company because where company provide and offer their products and
services. According to the Kenya people interest company design or layout the company structure so that
customers easily engage with company (Ekinci, Molinillo and Japutra, 2017).
CBBE Model
Customer-Based Brand Equity Model (CBBE) also known as Keller's Brand Equity model. With
the help of this model company consider their customer because customers are responsible to make more
profit so this is the main role of company to keep customers happy. Cost Coffee always focus on their
customers taste preferences and their convenience. Now company is planning to start a business in Kenya
so company also need to consider Kenya people and focus on their preference and company will balance
long term relation with them so that company will earn more profit from Kenya. CBBE model help to
establish a strong brand image Customer-Based Brand Equity Model of their products in front of the
customers. CBBE model distributed in four steps which are discussed below-
Brand Identity
Kenya market is totally new for the Costa Coffee so it is important to create a strong and
influential brand identity and also launch itself as a manner so that people of the Kenya successfully
compare to the costa coffee to the other company. A strong brand identity help to create a positive impact
on the customers mind about their company so its necessary for costa coffee to build a effective brand
identity (Kraus, et.al.,2016).
Brand Meaning –
This is a second step of CBBE model. In this step company try to explain that who are you ?.
After create brand identity, Costa Coffee need to consider this step. In this step company deal with the
performance and imagery.
 Brand Performance – Performance of the brand is the most prominent factor of the company.
Company success is totally depend upon the performance of the company. Costa Coffee
performance is based on the products price , features, reliability, design , style and customer
services.
 Brand Imagery – Costa Coffee is a world famous brand for Coffee and company brand image is
already strong but every countries have a different system. New company introduce their
products in new country that is Kenya so company also try to create a effective brand image in
front of Kenya customers so that company can establish their market and increase the rate of
market share. With the help of social media company easily make their brand image in Kenya.
Brand Response

The response of the brand is Consider the third step of the CBBE model. This step is totally
related to the usage and delivery of the products of the company and it is mainly depend upon the Costa
Coffee performance. Costa Coffee will provide satisfactory products which full fill the expectations of the
customers then customers will response very well to the company (Mahmoud, et.al.,2016).
Brand Resonance
This is the fourth and last step of the CBBE model. In this step, Costa Coffee would
about to become brand advocate and it situation is really challenging for the company . This stage come
when customers personally and socially connected with the company. Company must connect to the
customers and ask them about their expectations and feelings.
Illustration 1: Customer-Based Brand Equity Model

Integrated Communication Mix and Methods
Integrated Marketing Communication is method which help to connect the all form of
communication channel with the company. Costa Coffee is introducing business in Kenya so company
need to consider the mode of communication between company and people. There are three influential
marketing communication tools and methods which are discussed below-
Digital Marketing
In this fast running world, digital marketing become necessary for the company. Costa Coffee is a
large brand and dealing with huge customers all over the world. Company use digital marketing to for
integrated marketing communication purpose so that company easily influence the people of Kenya with
their products and services. Costa Coffee could communicate with their target customers through digital
marketing like websites, messages, emails, online advertising of the products. Digital marketing is like a
biggest benefit for companies to promote their products and communicate with customers globally
(Ofosu-Boateng and Agyei, 2020).
Online Platform
Promotion and Communicate through online platforms are on demand and very effective. All
national and international businesses using online platform to reach the audience globally. Costa Coffee
also promote their products through online platforms such as Facebook, Instagram, YouTube, LinkedIn
and other online media. This is a best method of integrated marketing communication. In this time
everyone using online platforms and trying to connect with lots of people so it make easy to promote
products on online. Company will get quick response through online channels. Company also receive
and give instant responses to their customers and also satisfy their query.
Sponsorship
This is a also a essential method of integrated marketing communication. Through this method
Costa Coffee could promote their roasted coffee through sponsorship. Company could consider and
approach some activities like sports game, entertainment shows,cultural shows etc. Sponsorship need a
massive cost and time. Only well established companies could opt for sponsorship. Through
sponsorship , company easily engage with the local people of the country and give positive impact on
them (Pavliková and Čihovská, 2017).

Costa Coffee could use online platforms and digital marketing as an influential integrated
marketing communication. These methods are very effective and create positive and effective impact on
the customers.
Measure of Success
Success is really crucial for each and every company and companies use some measures through
which companies easily measure their success rate for future purpose. Costa Coffee use some measures
for success like sales targets, market share, profitability, return on investment . These measure of success
are explained below-
Sales Target
Company need to set a sales target for their company so that it will become easily to measure the
profit rate. Costa Coffee expand their business in Kenya so company need to set a sales target to increase
the sale rate for the future purpose. Company prepare a sales target and fix the specific amount of sales
will need to completed within a particular deadline. The big advantage of setting the sales target are that
employees of the company clear about their job role and give their extra efforts to accomplish sales target
of the month (Valos, et.al. ,2016).
Market Share
Every company wish to increase their market share rate. Costa Coffee is well established
company and expanding their company in Kenya so company need to give their best in Kenya also so that
company easily improve market share. To get the success, its important to0 measure the market share of
the company. It will help of the future purpose also. If your company market share is high then every
company and people want to connect with company. Costa Coffee offers best services and make their
customers happy in Kenya then it will help to boost market share and through market share company
easily measure the success rate.
Profitability
This is also a different form of method to measure the success of the company. Costa Coffee
need to more connect with Kenya people and also build a strong relation with them so that it will help to
increase the profitability of the company. Company need to measure profit monthly so that company will
more focus to increase their profit. With the help of discounts and offers company easily engage with the
customers and make more profit in future ( Wann-Yih, et.al.,2020).
Return on Investment
This is another method of measuring the success of the company. Costa Coffee need to consider
Return on Investment method to measure the success rate. Through this method, company determine all
the aspects of the company. For company success , money,brand loyalty, company image, position in
market , customers satisfaction all is necessary.

From all these methods to measure the success of the company, profitability is the best and most
useful approach to measure the success of the Costa Coffee because it method helpful to identify the
profit and loss of the company so according to this company will make their success plan.
CONCLUSION
As per the report it is concluded that for launch products and services in a new market company
need to identify the international marketing strategies and use marketing mix approach according to the
other country market situation. This report is deal with the adaptation and standardisation methods and
also determine three integrated marketing communication so that company easily connect and
communicate with the Kenya people. Through CBBE model company establish their brand identity,
brand performance and image and brand response. This report identified some methods which help the
company to measure the success.

REFERENCES
Books and Journals
Bruhn, M. and Schnebelen, S., 2017. Integrated marketing communication–from an instrumental to a
customer-centric perspective. European Journal of Marketing.
Cerrato, C., 2018. The influence of digitalisation over the international marketing mix strategy. A case
study in the footwear industry.
Çifci, S., et. al., 2016. A cross validation of Consumer-Based Brand Equity models: Driving customer
equity in retail brands. Journal of Business Research, 69(9), pp.3740-3747.
Ekinci, Y., Molinillo, S. and Japutra, A., 2017. A Model of Consumer-Based Brand Equity (CBBE) for
Global Fashion Brand.
Kraus, S., et.al.,2016. Standardisation vs. adaption: a conjoint experiment on the influence of psychic,
cultural and geographical distance on international marketing mix decisions. European Journal
of International Management, 10(2), pp.127-156.
Mahmoud, M.A., et.al.,2016. Market orientation, learning orientation and business
performance. International Journal of Bank Marketing.
Ofosu-Boateng, I. and Agyei, S.D., 2020. Effect of customer satisfaction and marketing communication
mix on customers’loyalty in the ghanaian banking industry. European Journal of Management
and Marketing Studies, 5(4).
Pavliková, M. and Čihovská, Č., 2017. Adaptation of marketing tools in retail companies. Economic
annals-XXI, (164), pp.71-75.Adaptation and Standardisation of Marketing Mix
Valos, M.J., et.al.,2016. Exploring the integration of social media within integrated marketing
communication frameworks. Marketing Intelligence & Planning.
Wann-Yih, W.U., et.al.,2020. An Integrated Framework of Customer-based Brand Equity and Theory of
Planned Behavior: A Meta-analysis Approach. The Journal of Asian Finance, Economics and
Business (JAFEB), 7(8), pp.371-381.