Costa Coffee_ business model Presentation.pptx

costa coffee

1. 0 1 COSTA MARKETING PROJECT PLAN GROUP NO-22

2. Costa Coffee ( CC) is a fast growing global coffee venture. Its corporate objectives focus on prime quality and taste of all the coffee brands it offers keeping an environment friendly approach where the company is aware of its social responsibility. Costa Coffee has i tems suitable for vegetarians and vegans, and many i tems are gluten, peanut, and nut free. Its coffee beans come from all over the world, and i t offers many f lavours and sizes so there is something for everyone. It is well- known for the quality of i ts products. PRODUCT DESCRIPTION

3. TARGET MARKET AGE 18-45 years Students Working professionals Tourists and Shoppers GROUP INCOME Middle class & Upper class GENDER All gender

4. EXECUTIVE SUMMARY Costa coffee should more focus on Internet marketing because people are using social media quite a lot and young generation uses internet for much longer period of time. Secondly for elder generation marketing tactics like 'gorilla' works best for brand awareness and attention grabbing. Well cross promotion marketing also works fine. As Coca-Cola has acquired Costa Coffee it can be cross promoted by each brands may be an contradiction but things still works.

5. MISSION “To serve the best coffee in the true Italian style.” VISION Costa Coffee vision is to provide the best hospitality to its customers since its range of hospitality products range includes restaurants, hotels and leisure clubs.

6. Costa' s environment is very comfortable, which is one of the reasons many consumers choose this brand, at the same t ime the price is equal to Starbucks, which is considered to be a luxury brand. With the improvement of the quality of l i fe and the quickening pace, more and more people accept and love the elegance, romantic leisure and l i fe art of coffee. Hence we chose this brand because of i ts positive growth rate. WHY THIS BRAND NAME?

7. MARKETING ENVIRONMENT INTERNAL FACTOR The internal environment includes factors inside the organization. EXTERNAL FACTOR The external factors are the factors related to the outside world that have their impact on the organizational practices. CULTURE PERSONALITY CONSUMER MENTALISATION STRUCTURE TRAINING & DEVELOPMENT OBJECTIVES OF ORGANIZATION PHYSICAL FACET RELATIONSHIP REFLECTED CONSUMER

8. BRAND IDENTITY PRISM EXTERNALISATION: PHYSIQUE- True Italian coffee-mocha italia, best quality, unique test, freshly grounded beans, perfect expresso, brown colored logo-touches of black white and green- symbolize perfect and fresh coffee flavor. RELATIONSHIP Accessible, distinctive, pleasant, polite REFLECTION: Real class, matured, social, stylish, trendy BRAND IDENTITY PRISM INTERNALIZATION: PERSONALITY Luxury, excellence, perfection, warm, relaxing, soothing CULTURE European[Italian and UK], sophistication, classicism SELF IMAGE I am discreetly elegant, I am perfect .

9. This brand has very strong reputation and products offered by this company is outstanding. Costa Coffee is creating great ecological and environmental balance and hence it is the only brand which do so The products of Costa Coffee are expensive compared to the other coffee outlets an hence all category of people generally do not prefer to have their services. Due to their fast expansion and their complex business process for them it became very difficult to prove their services up to mark Costa coffee has served more than 169 million cup coffee and thus it helped them to expand their stores from 1992 to 2163 in total costa phenomena can outlets. This also increase their profit by 15% In many European countries there are none to very few competitors in coffee business and this may be golden opportunity to penetrate the European market. Secondly there are many new coffee brands like Coffee Nero and Coffeebiee etc who are expanding rapidly and eating the market share of Costa coffee. They are possibly giving cheaper services compared to costa coffee to its customers. W WEAKNESSES Costa coffee is present in very limited numbers of countries. T THREATS Starbucks is the biggest market competitor for costa coffee which is rapidly penetration European market while Starbucks is leading coffee brand in some Asian countries. S STRENGTHS All the coffee seeds that Costa Coffee uses are certified by rainforest alliance. O OPPORTUNITIES Costa is present in few countries and thus has great opportunity to expand themselves in many other nations. According to a survey report

10. MARKETING STRATEGY Creative Strategy: What costa coffee does is to give some promotional offers which seems to be great and cost effective but when consumers calculates the amount then it is generally same or with very minor difference. The strategy to display themselves as ecological lovers and environmental preservers which is also true can be used as certifications for marketing and hence is really a creative way to do marketing. Mass Media / Internet Strategy: The target market segment of the plan are going to be individuals who are attending college and who have a daily access to the net. Thus the well-liked media for the attainment of the objectives of the plan will rely majorly on the net. The idea is to possess a structure aimed at attracting the initial consumption of Costa coffee and subsequently work to retain these customers while attracting more. The rationale for the web is that it is the best and most practical vehicle for communication. Also, it has several modes of communication within it, starting from internet advertisements, social media, websites, and blogs. The web methods also are instant and therefore the information is created available in a very timely manner. I t's also noteworthy that the target population is in constant touch with the web world and in and of itself a lot of emphasis should be placed on internet communication

11. Promotions The concept will increase the brand awareness in addition to boost sales with the employment of practical marketing, which will further allow the consumer to possess an emotion; experience with the brand. The discount programs shall be applied to stores located around the colleges and areas with an outsized population of the target group. Promo Offers and Special Discounts Costa coffee uses many consumer beneficial offers like they provide 50% to students and on special occasions they also give major discount which is a great marketing strategy.

12. Uniforms are deep black, which contribute to the overall feeling of the cafe. Trained to be pleasant, polite and positive MARKETING MIX PEOPLE

13. The selection of cities was based on the following criteria: Sizeable population of executives, students and families High disposable income with people looking for new vistas in leisure and lifestyle oriented concepts High level or organized retail activity; Rapid socio- economic development; Level of commercial importance (Industrial cities, state capitals etc.) MARKETING MIX PLACE @ R E A L L Y G R E A T S I T E

14. Costa Coffee is operating is business by the means of different outlets over the 31 countries. It has almost 3300 outlets from the selling and distribution is done to serve the customer. The business of Costa Coffee is operating more than 2121 outlets globally. Costa Coffee should link up with food lovers. They should make it their priority to make relationship with customer. They should consider different things in the selection of placement and distribution strategy. For selecting the placement for distribution there are different issues involved on which Costa Coffee must work importantly to attract the customer those exist and potential customer. Their selection of place should be situated in giving the priority to the comfortable and time consuming zone. They should have consideration in their mind for upper middle class and rich people according to which the outlets where the place of Costa Coffee are established. High profile shopping malls, good looking theatre places, busy corporate areas and the place like should be chosen to the placement and distribution consideration. DISTRIBUTION G S

15. In India it is low key. Mostly rely on word of mouth. If there is launch of any new product Costa serves it free to the customer as a sample with other products. MARKETING MIX PROMOTION & ADVERTISING @ R E A L L Y G R E A T S I T E

16. Miscela Blend: Costa has a unique blend we call the Mocha Italia Macinatura: Grind: Every cup of Costa is made from freshly ground beans" Macchina: Machine: Costa shops use specially designed Italian espresso machines. Manna: Hand: the skill of the Barista influences the "Perfect Cup" MARKETING MIX PROCESS

17. There are several brands in the market which are competing for the same set of customers. Below are the top 6 competitors of Costa Coffee: Starbucks McDonald's Dunkin Donuts Cafe Coffee Day Barista Lavazza Mochas COMPETITIVE ANALYSIS

18. MARKET SEGMENTATION

19. SEGMENTATION ECONOMIC AGE OCCUPATION BEHAVIOURAL TARGET UPPER MIDDLE CLASS PRIVELLEGED CLASS YOUNGSTERS PROFESSIONALS POSITIONING THE ITALIAN COFFEE MASTERS HIGHEST STANDARD OF LUXURY THE BEST SERVICE & A REPUTATION FOR EXCELLENCE STP

20. COLOURFUL PICTURE DIM LIGHT INTERIOR 3 COLORS LOGO ON COFFEE CUP BROWN CHOCOLATE RED PHYSICAL EVIDENCE

21. ANSOFF MATRIX

22. Porter’s Five Force Model

23. 1. Power of Customers Costa's environment is very comfortable, which is one of the reasons many consumers choose this brand, at the same time the price is equal to Starbucks, which is considered to be a luxury brand. With the improvement of the quality of life and the quickening pace, more and more people accept and love the elegance, romantic leisure and life art of coffee. Thus most ordinary consumers are less sensitive to coffee price and care more about service quality. The bargaining power of buyers is also among the most significant forces affecting Costa Coffee’s business. Customers can easily shift from Costa to other brands because it is affordable to do so. Customers can also stay away from Costa if they want to, because there are many substitutes. Thus, this aspect of the Five Forces analysis model shows that the bargaining power of customers should be among Costa Coffee’s top priority challenges.

24. There are three major coffee chains including Starbucks, Costa and Nero. The success of Starbucks comes down to its unique marketing aesthetics.Its style and sensory recognition are deeply loved by consumers. This is largely due to its comfortable and concise storefront environment. When the environment becomes the first factor considered by people, the taste of coffee is less important. There is no doubt that the British national coffee brand is Costa. Costa takes red for its main hue, whether it is a wall or a cup, and when you walk into Costa you feel a sense of celebration. In the eyes of the British, Nero is the cheapest and most delicious coffee. Nero foods are relatively healthy and also offer free newspapers. The baristas are more friendly, and you can order the coffee you want 2. Power of Competitors

25. Like many companies, Costa is not directly trading with suppliers, such as coffee farmers, but with exporters, which have a lot of resources to make their bargaining capital. Therefore suppliers have some bargaining power. While due to the size of Costa is very big, is one of the important customers, supplier always maintained close relations between,Costa purchases largely affect the supplier's revenue. Therefore, it relatively reduce the bargaining capital supply chamber of commerce. Its one time purchase volume is extremely huge, the supplier needs to give profits to keep its purchase quantity. The suppliers do not have much impact on Costa. The large overall supply lessens the effect of any single supplier on the company. Thus, based on this aspect, Costa Coffee does not need to prioritise the concerns or demands of suppliers. 3. Power of Suppliers

26. It shows that new entrants have significant but not strong effect on Costa Coffee’s business. New entrants can compete againstCosta because of the moderate costs of doing business and supply chain development. However, new entrants find it difficult to compete against established brands like Costa and Starbucks because it is very costly to develop a strong brand. 4. Threat of New Entrants

27. Tea and alcohol are both threatening substitutes, and the British love of black tea is well known. In the afternoon, drinking a cup of black tea is definitely a wonderful experience. Fruit juices, fizzy drinks, these are also popular with young people. Customers can easily shift to substitutes because they do not need to spend for the shifting process. In addition, many of these substitutes cost less than Costa’s products. Thus, Costa must consider the threat of substitutes. 5. Threat of Substitutes

28. Thank You!