costa coffee marketing mix 7ps
From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. 3.2 The Macro Environment Costa Coffee has applied a range of promotional techniques to attract customers. Now come to the point, a company has the place to sell product but there is limited access or the customer has to get trouble to go there or the point of place is totally unknown to all, then everything will be vain even the company has the place to sell the product but it is not attracting the customer. However Costa coffee uses a number of BTL promotions like advertising on buses and out of door media. The 7Ps marketing model was originally devised by E. Jerome McCarthy and published in 1960 in his bookBasic Marketing. Therefore, if the demand in the home market declines, it will be a big problem for the company. While this will increase its business, it may also impact on its profit margins once those delivery companies take away their fees. 3. Free resources to assist you with your university studies! Now come to the Costa Coffee product development. It aims to address the 7Ps of Starbuck which stand for product, price, place, promotion, process, people, and physical evidence. Basic Marketing. Senior Growth Marketing Manager. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. 3.2.3 Economic (global) Digital Marketing, Marketing Manager. Former it was the service of delivering the coffee to the Italian coffee Shop but history is bow it is the global brand. McCarthy (1960) was first to suggest the . Take a look at HubSpot as an example, which was founded in 2006; Hubspot now boasts over 86,000 total customers in more than 120 countries. Comprised of Marketing Hub, Sales Hub, Service Hub, CMS Hub, and a powerful free CRM, HubSpot adds value for customers in every aspect of the 7Ps. Place in the marketing mix of Costa coffee Costa coffee has a fantastic presence in great Britain with over 1000 stores. It is vital for a business to understand its marketing mix so that it knows which elements to focus on and how to use them effectively. Costa Coffees biggest competitors in the UK are Starbucks, and Caffe Nero. So, placement is the very important topics in the context of the marketing Mix. Promotion is considered as the very important component in the context of the marketing mix. The 7Ps of the marketing mix can act as a well-structured checklist for marketers who aim to create an effective strategy that achieves their goals and evolves the business to the fullest extent. (1964). These are Product, Price, Place and Promotion. However, it has expanded into digital ordering platforms by partnering with Deliveroo, Just Eat, and Uber Eats. The benefit of the premium pricing is that it defines some exclusive coffee which attracts a lot of customer due to its premium pricing. Another issue is related to the product mix concept that is to keep the quality of the product up to the marks as the satisfaction of the customer can be achieved the product of the company. Product Strategy of Starbucks Listed on 2023-04-29. This is the job responsibility of the marketing people as the marketer to create as well as design the right and correct marketing mix in response to the product mix. The most important reason is that coffee going consumer only slightly cut its spending on coffee and sandwich (30%). But since the goal of Costa Coffee is towards a long-term dominance and stability in the brewing industry, then the pursuit of these promotional campaigns will be beneficial for the company in the long run. Under the Marketing Mix are the 7Ps of marketing, which are the product, place, price, promotion, people, packaging, and process. The overall population in the UK and in the global market (China, India, and Eastern Europe) is on the increase. Costa Coffee uses regular adverting on television and social media. The marketing people should have depth knowledge in the selection of place and should have the deep understanding for target market as well as target customer as it may become easy to attract the customer. From the beginning a number of TV channels have already started airing their programs art Costa. The Coca-Cola Company is emerging from the pandemic poised for growth with a leaner lineup of high-potential brands and a more disciplined, consumer-centric approach to marketing and innovation, Chairman and CEO James Quincey said Feb . The 7Ps helps companies to review and define key issues that affect the marketing of its products and services. On the other hand, exhibitions, sponsorship, seminars, conferences, and events are another form of promotion methodology. The club of loyalty program allows getting discount on foods. However, it is worth noting that reviews online have shown customers mixed feelings about its products and services with many being happy while others branding some its products and services as poor (Trip Advisor, 2022). It has also one of the widest connections among other UK coffee brewers made possible through a network of distributors and breweries. The difference is that unlike other milky coffees such as lattes there is only a small amount of heated but not frothed milk blended into three small shots of espresso to give a velvety, smooth texture. There need an extensive research on the context of the product life cycle that which product is producing and what is the durability of the product according to the demand and acceptance of the product. Having this in main Costa Coffees business-boosting beverage has added yet another term to the baffling menu boards of Britains coffee shops introducing the flat white (latte) and the babycino (frappuccino). Furthermore, Costas recent price increases have made many consumers furious (Hunter, 2022). The policy of premium pricing of Costa Coffee is known to all. Hi, I am an MBA and the CEO of Marketing91. That means price is the amount that has to be paid by the customer to buy the product. This is a detailed assessment of the marketing mix of Costa Coffee (7Ps of Costa Coffee). The cash inflows are projected to increase much this year and in the next year with the development plans. Some analysts argue that Costa offers low-priced options for those who cannot afford high-end coffee as well as more expensive options which cater to people with more disposable income. This is a detailed assessment of the marketing mix of Costa Coffee (7Ps of Costa Coffee). The flat white may appear to be just another cup of coffee, but aficionados plead otherwise. These business strategies, based on Starbucks marketing mix, help the brand succeed in the market. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. Costa, U., 2018. Most of the awareness will be through the word of mouth of people amongst the masses. But bow a days social media has become the most important stage to promote a product. In the year 2004 Costa netted a turnover of 1,043.7 million. The marketing mix is a familiar marketing strategy tool, which as you will probably know, was traditionally limited to the core 4Ps of Product, Price, Place and Promotion. It is a subsidiary of the Coca-Cola Company. At least there are no ATL promotions seen. Our free guide details 15 classic planning tools to help you use data and analysis to develop your marketing strategy. Since the targeted market segments include only the higher middle and elite classes, therefore the venture is even more successful. Marketing mix of Costa Coffee. Raised By Lions Coffee. At present the company is striving to develop global brands where it can capture global coffee drinkers that find at Costa Coffee shops the touch of their local cultures and moods. Place is required for the display of the product. The market observation that is found ultimately for Costa Coffee is that the most selling product of Costa is Coffee. Estimates suggest that though global economy is sluggish, per capita income is on the rise especially in China and India (CCs biggest prospective markets). Attached to the same conformity is the strong legal requirement of the UK where CC started its core business (Whitbread, 2012). To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! The urban middle class in Eastern Europe, UK, China, and India is more likely to benefit from this boom of technology and social media and would become a vast customer base for the CCs new stores, adding more consumers to the present base. However, it can also be argued that it purses a competitive pricing policy as the competition in this industry is extremely fierce with famous brands such as Starbucks, Pret A Manger, and Caffe Nero are also vying for the market share. Bhasin, H., 2017. 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. As mentioned earlier, the brand is well-known for its richly brewed coffee and a collection of premium teas. It has also used it to build customer loyalty and become the No 1 in the coffeehouse market in the UK. Prices of Starbucks. The promotional strategy for the Launch of Costa in Pakistan has been mostly low key. [Online] Available at: https://www.marketing91.com/marketing-mix-costa-coffee/. There is a variation of price in the context of the product dimension like if anybody wants to add some additional item included in the coffee like extra chocolate, cream etc. Additionally, CC has won the consumers trust as giving value for money. The 4Ps marketing mix was designed at a time when businesses were more likely to sell products, rather than services. Network of Partners, Country User Groups. The above analysis reveals that Costa Coffee has several strengths, such as its strong brand identity, commitment to product quality, and diversified product portfolio. 5.1 Sales objectives Anastasia Belyh. Together, they welcome with a smile more than 10 million customers a month. It has used the marketing mix to create its own brand identity. [Online] Available at: http://www.redbrick.me/lifestyle/10-facts-costa/ [Accessed 11 January 2018]. Three more pillars have found their place in the extended marketing mix that shape marketers' decision-making process. About Costa Coffee. Costa Coffee Marketing Mix. Services | Marketing Strategy & Mix | MBA Skool Marketing Strategy Services Service category contains the marketing, product, pricing, promotional and distribution strategies based on marketing mix (7Ps) of service companies and brands. Starbucks actually began by purchasing coffee from Peets, but . After thorough research, and competitive analysis the perfect locations in terms of exposure, accessibility and competitive edge have been acquired. In should be mentioned that Costa cappuccino has five times more caffeine than Starbucks (BBC, 2023). The new loyalty card was recently distributed to customers in residential areas through a leaflet drop which included a pre-stamped card offering a free coffee for redemption in any Costa outlet. These are the primary ingredients of a marketing strategy, and as a means of translating marketing planning into practice. In the context product mix it is not necessary that the product will be only the tangible product but the marketing mix concept also allowed the product could be the intangible also. 6.1 Product 5.2 Market Share Objectives, 6 Marketing Mix Costas new marketing strategy has been implemented to demonstrate to the public that Costa is the only brand with real coffee authority; they source, store, blend, roast, grind and extract all their own coffee. Hence this would certainly increase the revenue generation. There is a belief to the customer mind of the of Costa coffee that whatever the regarding its pricing the product is solid and of course tasty and that generate the customer satisfaction of inherent mind to the product. 1. In addition to, it provides many attractive offers like discount offers and free coupon. The sobriety of Costa invites consumers to spend a pleasant time with their company without the tacky flash and glitter. According to Keynote Research (2012), the market will grow by 25% in 2015. If taken as stand along business, it can be worth more than 1 billion. This was an enormous opportunity area for Costa Coffee due to was arriving to a new market that the population were aware of the product, however not every Pakistani was familiarize with Costa Coffee Brand. Costa coffee can be found in malls, airport and other premium places. Copyright 2017 2025. Marketing Mix of Costa Coffee is the research topic for emphasizing on the marketing strategies developed by the firm. The Marketing Campaign Planning toolkit contains: Start your Digital Marketing Plan today with our Free membership. Economic downturns can lead to reduced consumer spending on non-essential items such as premium coffee beverages. There was an another milestone of Costa Coffee to celebrate their birthday of 40th birthday celebration in the period of 2011. Hope the article Marketing mix of Costa Coffee (7Ps of Costa Coffee) has been useful. Public relations is also the another form of promotion and it is the non-paid from of promotion. Moreover, the utilization of the appropriate knowledge management tools is necessary for their products to reach out to people even in different cultures. Marketing Strategy of 7-Eleven analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). But this is offset by the outstanding quality and discerning tastes at Costa. Costa Coffee focuses on creating an inviting environment to entice customers to enter its stores and stay for longer periods of time. Their first coffee shop was in Vauxhall Bridge Road, London. A popular marketing model, the marketing mix is can also be referred to as the 7Ps framework for the digital marketing mix. Thus, Costa coffee does not think that price is important. Besides these they use the bill board in different occasions to promote their product. Hot chocolate, Special drinks, tea, Cold drinks like cold coffee and ice blends, sandwiches and other supplementary foods are some of the variety of Costa coffee. Listing for: Star Bucks Coffee. Whatever the product is, there is a variation of price in the context of the product dimension like if anybody wants to add some additional item included in the coffee like extra chocolate, cream etc. 4. Handcrafted Beverages :Fresh -brewed coffee ,hot and iced espresso beverages , Frappuccino coffee and non-coffee blended beverages, smoothies and Tazo ' teas . This in turn helps increase sales as customers tend to buy more when they spend more time at the coffee shop. Promotions in the marketing mix of Costa coffee promotions are almost absent in the case of Costa coffee. Customer have observed about Costa Coffee in different form with the title like Mocha which is delicious, Latte which is delicious, Americano which is delicious, Flat White which is delicious Expresses which is delicious and Cappuccino which is delicious. There is another belief to the customer mind that Costa Coffee is always delivering the quality foods which is good for health and there no exception to the pricing that could not be the matter of excuse as the fact of delivering healthy food as well as keeping the quality upto the standard. Your email address will not be published. Its distribution strategy includes opening stores in heavily populated areas with good transport links. Because with the context of product the service is related this can be termed as the intangible context. We are now seeing AI and machine learning techniques informing more developed Marketing Mix Modeling techniques such as regression and forecasting. MBA Skool From the view point of their marketing strategy it is very clear that their priority is make relationship with customer. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. When using the 7Ps as a model to conduct a marketing audit, I look at each of the Ps.
