Costa Coffee vs Starbucks -Marketing Essay

2669 Words Jun 12th, 2012 11 Pages
How Costa Coffee would benefit and create additional value for their coffee store clients by using elements of Starbucks marketing strategy?

Contents

Introduction 3

Coffee Market in the UK 3

Market Leading Coffee Shops in the UK 4

Costa Coffee 4

Identifying competition 6

Starbucks 6

Conclusions 8

Recommendations 9

References 11

Appendix 1 13

Appendix 2 14

Appendix 3 15

Introduction

Competitive marketing strategy is described by Kotler and Armstrong (2012) as a strategy which
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Before the main analysis of the company, an overview of the current UK coffee market situation has been made.

Coffee Market in the UK

Mintel, a leading market research company, have concluded on coffee shops that “visiting coffee shops is a well-established habit amongst consumers, with many seeing it as an affordable regular treat which is also driven by consumers’ continuing demand for convenience products” (Mintel Marketing Intelligence 2011).

The coffee market in the UK is intensifying as foodservice operators are also entering more and more on the same market place (Mintel Marketing Intelligence 2011). Although Mintel report (2011) concluded that Costa Coffee and Starbucks are still the market leaders in terms of number of time visited, the non specialist shops have continued to focus on their quality and offering hence coffee shops are loosing their USP’s - unique selling propositions and market share to indirect competition as demonstrated on the appendix 2.

USP’s in marketing refers to a specific feature that differentiates a product from similar products (Bloomsbury Business & Management Dictionary, 2007). Through USP’s company can differentiate itself on the market and deliver more customer value. Kotler and Armstrong (2012) argue that this helps a company to gain competitive advantage as long as the product positions itself to offer the best quality and

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