Marketing Plan for Costa Coffee

Project Report, 2011

18 Pages, Grade: A


Table of Contents

1 Executive Summary

2 Corporate objectives

3 Marketing Audit
3.1 The Micro Environment
3.1.1 Mark Size and its characteristics
3.1.2 Trends/Positioning
3.1.3 Distribution Channels
3.1.4 Competition
3.2 The Macro Environment
3.2.1 Demographic (Global)
3.2.2 Political
3.2.3 Economic (global)
3.2.4 Social/Cultural/Technological
3.2.5 Legal and Ethical

4 SWTO Analysis
4.1 Strengths of CC.
4.2 Weaknesses
4.3 Opportunities
4.4 Threats

5 Marketing Objectives
5.1 Sales objectives
5.2 Market Share Objectives

6 Marketing Mix
6.1 Product
6.2 Price
6.3 Place and Positioning
6.4 Promotion
6.5 People
6.6 Process

7 Budgeting

8 Controls

9 References

1 Corporate objectives

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. It is this sense of responsibility that is reflected in the title “responsible coffee” (Costa Coffee, 2012).

2 Marketing Audit

To conduct a detailed marketing audit of CC, it is imperative to understand that CC is a growing globally. Thus, global figures of the industry are important to conduct the marketing audit.

2.1 The Micro Environment

2.1.1 Mark Size and its characteristics

Although there are still strong glimpses of global recession at present, between 2009 and 2010 branded coffee market expanded to a great extent. The most important reason is that coffee going consumer only slightly cut its spending on coffee and sandwich (30%). This has positively impacted the UK’s coffee industry and resulted in its expansion into Eastern Europe, China, India, and elsewhere. More and more retailers are opting for different coffee brands. The global market of branded coffee is thus expected to increase positively in the next five years; expected markets are Eastern Europe, Middle East, Asia Pacific, and South Asia. According to Keynote Research (2012), the market will grow by 25% in 2015. Costa coffee is the largest coffee brand and the one growing fastest.

2.1.2 Trends/Positioning

Costa Coffee currently holds the 2nd biggest brand of the world. If taken as stand along business, it can be worth more than £1 billion. 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.

2.1.3 Distribution Channels

International franchising strategy has helped CC to reduce its distribution channel. However, the company’s strength lies in its multi-distribution channels, i.e., reaching globally for different raw materials meeting the standards.

2.1.4 Competition

Costa coffee faces competition from already present competitors such as Starbuck as well as from new entrant in both the UK’s market and elsewhere like India and China. As the branded coffee market is expected to substantially grow in the future, more and more competitors are expected with the market trends getting more sophisticated.

2.2 The Macro Environment

2.2.1 Demographic (Global)

The overall population in the UK and in the global market (China, India, and Eastern Europe) is on the increase. Secondly, with their consumer insight campaign, Costa Coffee teams with Slater were successful in educating the UK people that there was another coffee brand that was also tastier than Starbuck or Caffé Nero. Thus consumer base is rising. The target consumer in all the countries for CC is not a specific segment: It focuses to bring to its cafes all the age groups which is a promising strategy (Marketing News, 2012).

2.2.2 Political

Political climate in as far as CC’s near future markets are concerned (Eastern Europe, China, and India) are politically stable at the moment.

2.2.3 Economic (global)

Estimates suggest that though global economy is sluggish, per capita income is on the rise especially in China and India (CC’s biggest prospective markets). Although setbacks in other countries do have an effect on the overall expansion, branded coffee business is destined to increase in the coming days. Emerging middle classes in China and India hold greater promise for CC’s success because this class is out to taste new flavors and feel of the other cultures (McKinsey, 2012).

2.2.4 Social/Cultural/Technological

With the growth and expansion of internet-based technologies, social media, and other such communication technologies, the work is better at making more informed choices. 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 CC’s new stores, adding more consumers to the present base. Moreover, CC has been constantly improving its operation-based and service-oriented technology. The present example is its Costa Express machines which have won the hearts of the consumers as the self-serve coffee machines go “touch-screen” based. It is clear that CC is abreast with recent trends in technological world.

2.2.5 Legal and Ethical

On the legal front, CC has proved to be consistent with the pertinent laws and policies with regards to its raw materials and products. One plain proof’s is the company’s to Rainforest Alliance laws where growth or coffee is ensure with all the social, environmental, and legal procedures. Attached to the same conformity is the strong legal requirement of the UK where CC started its core business (Whitbread, 2012). Although China and India do not seem to offer this much strength of law and ethical business practices, it is clear that with its strong base, CC will outsmart its competitors in other markets.

3 SWTO Analysis

Now, with the PESTLE analysis conducted above, it is important to understand the company’s internal environment so that a well-rounded understanding of the company’s position can be realized with which the future marketing plan can be strategically obtained.

3.1 Strengths of CC

The biggest strength of CC is its being one of the most innovative brands in the UK’s coffee market. The most attractive feature of CC that gives it an edge over its competitors such as Starbuck is its being high-quality brand while at the same time not as expensive as Starbuck. Further strength is CC’s wide range of products that speak of its strong retail base. Additionally, CC has won the consumer’s trust as giving value for money. With all these features, CC has expanded from UK to the global scene where it is out to grow even more in the times to come.


Excerpt out of 18 pages


Marketing Plan for Costa Coffee
University of Wales, Newport,
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ISBN (Book)
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marketing, plan, costa, coffee
Quote paper
Maingi Joe (Author), 2011, Marketing Plan for Costa Coffee, Munich, GRIN Verlag,


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