Market Analysis for a Costa Coffee British Company - Assignment Example

? Marketing Analysis Project 28th May Marketing Analysis Project Introduction Marketing is a very important aspect in any company as it informs the target customers on the availability, quality, price, discounts, and place of sale of a reference product. However, subject to the increased market competition and scarcity in resources, company managers seek to devise and implement a distinct marketing mix to guarantee a competitive advantage in the competitive market. A company’s marketing mix refers to all actions that a company adopts while selling a product or service. Most assuredly, marketing mix entails a four P marketing strategy that involves price strategy, placement, product development, and promotion (Goi 2009, p. 1-4). Methodology This paper will do a market analysis of a major British Company, Costa Coffee and most specifically analyze the marketing mix that the company adopted since 2009. In doing this, I will analyze the advantages and disadvantages of implementing an integrated marketing mix as well as the challenges and opportunities that influence marketing decisions and prevent Costa Coffee from attaining a competitive advantage. Main Findings Marketing mix translates marketing planning into practice in establishing an effective marketing strategy. The managers adopt marketing mix to suit consumers’ needs and develop long-term and short-term marketing programs that will suit the company’s objectives. Indeed, marketing mix is a powerful marketing concept that enhances marketing, derives a firm’s competitive advantage, ensures delegation of marketing responsibilities, and separates marketing from other activities in a firm (Goi 2009, p. 1-4). Moreover, marketing mix helps in trading off the benefits of one’s competitive strengths in the marketing mix against the benefits of her competitors. Notably, the marketing mix adopted by accompany depends on available resources, customer’s needs, and market forces. As such, different companies have distinct market mixes (Goi 2009, p. 1-4). In this context, Costa Coffee has a unique marketing mix that seeks to establish its competitive advantage in the coffee industry. Costa Coffee is a global coffee company based in Britain and with outlets across the world. The Italian brothers Bruno and Sergio Costa founded the company in 1971 but Whitbread took it over in 1995 (Poulter 2013, p. 1). The headquarters of Costa Coffee is at Dunstable, United Kingdom. Indeed, the company has more than 1,700 stores across 28 countries in the world. Moreover, the company operates more than 1,200 outlets in UK and 2,500 Costa Express vending facilities to increase its presence in the coffee market (Costa Coffee 2013, p. 1). Costa Coffee was the second largest coffeehouse chain in the world after Starbucks but the situation changed in 2010 when Costa Coffee became the UK’s biggest coffee chain. As such, Costa Coffee is now the largest and fastest growing coffee shop chain in the UK. Additionally, the company has benefitted from a customer backlash against Starbucks to gain a customer base of more than 4 million customers a week (Bowers 2012, p. 1). Indeed, Starbucks had disputable tax affairs that emanated from paying little or no corporation tax despite its huge sales turnover. The company also has a foundation, Costa Foundation that helps communities to grow (Costa Coffee 2013, p. 1). Most importantly is the fact that the company’s global recognition is on an increasing trend and the company is seeking to establish its presence into new markets. As such, the company’s marketing strategy is very fundamental. Ideally, the presence of few market barriers necessitates the company to use effective marketing strategies to remain visible and viable in the market. It is quite notable that marketing will entail predicting the customers’ needs and seeking to satisfy those needs with an aim of boosting sales and creating a competitive advantage. As such, Costa Coffee adopts a marketing mix that will ensure the development of products that will satisfy and impress the customers (Rodenberg, n.y, p. 14-17). Actually, Costa is now the UK’s favorite coffee shop. Therefore, Costa Coffee uses effective marketing strategies and marketing mix to promote its products. In Costa Coffee, a well-planned and effective marketing mix establishes a long-term marketing strategy. The company has a global presence as the Italian coffee masters. Moreover, it has a unique image and high goodwill (Rodenberg, n.y, p. 18). The marketing mix includes the product, which defines the features and benefits of the products offered by the company. Indeed, Costa Coffee provides a wide range of products with numerous and distinct features which allows the customers to derive satisfaction. The company produces high quality and unique coffee across all its stores and best quality fast foods. Indeed, it produces high quality, hygienic and unique coffee that gives it a competitive advantage over its competitors. More so, the theme, the color of costa coffee, and the color of premises depict the comfort and uniqueness of the company (Rodenberg, n.y, p. 18). Actually, the setting of Costa Coffee allows the customers to socialize, relax, and enjoy coffee and foods in all its outlets. Its brand names include macchiato, espresso, cafe late, and espresso Doppio among other high brands. The brand names manifest perfection, the luxury, and excellence of the company products (Rodenberg, n.y, p. 18). At the same time, costa Coffee adopts the element of place in its marketing mix. This aspect defines where potential customers can buy costa Coffee products. Indeed, we can establish that costa Coffee customers can access the company products in all its stores and Costa Express vending facilities worldwide. As such, the customers are able to access and enjoy the company’s products with ease. The availability of costa Coffee products boost its reputation and influence the sale of coffee. However, the placement of the company relies on the availability of transport facilities and significantly derives a competitive edge to costa Coffee (Rodenberg, n.y, p. 20). Another element that Costa Coffee adopts in its marketing mix is price. Indeed, the company defines the cost of its products. This is a very important element in the marketing mix as customers seek to derive value for money on the Costa Coffee products. As such, the company aims at producing and availing affordable products to as many people as possible (Rodenberg, n.y, p. 19). Indeed, the target customers for Costa Coffee products include the youngsters, families, students, mature consumers, and professionals (Rodenberg, n.y, p. 17). Notably, subject to their distinct purchasing powers, the company derives different prices for different products (Rodenberg, n.y, p. 19). Nevertheless, these prices are competitive and correlate with quality .Notably, Costa Coffee puts more focus on quality than on prices. Ultimately, Costa Coffee uses the element of promotion in its marketing mix. This defines how Costa Coffee informs its customers about its products and services. The promotion entails the use of communication tools to market the coffee range brands (Rodenberg, n.y, p. 21). The company uses its brand name to communicate its good image to the target customers. However, the dominant promotion tool for Costa Coffee products is the word of mouth as customers discuss the goodness of the company products. Additionally, Costa Coffee advertises its products on major broadcasting and television stations, entertainment and business magazines, social media, and billboards. This forms an effective marketing strategy. More so, the company gives special offers, promotions, and point of sale rewards to attract more customers. Furthermore, the marketing department gives press releases on national broadcasters and print media to inform the customers about new products in the company. Nevertheless, Costa Coffee marketing team faces various challenges and opportunities that influenced the marketing decisions made by the company. Indeed, the company enjoys various opportunities that include the development of new products, engaging in wholesales, acquisition of new customers and business markets, and the expansion of the business in the high streets (Rodenberg, n.y, p. 15). These opportunities influence marketing decisions made by the company in that they demand for application of specified marketing mix in certain markets. They also affect the pricing of products at certain markets like where the company sells in wholesale. More so, they also call for modern market strategies to address the new products. Moreover, the new markets and the new customers call for unique marketing mix hence affecting the marketing decision made by the company. On the other hand, the marketing team faces various challenges that include existence of strong competitors, global crises, presence in few countries, and rigidity of the business (Rodenberg, n.y, p. 15). These challenges highly influence marketing decisions made by the company in that they had to address the challenges as they demean the competitive advantage of the company. Indeed, there was need to address the existence of strong competitors as failure to do this would result to loss of present customers. More so, the rigidity of the business affects the marketing strategies in application. As such, the challenges and opportunities influenced the marketing decisions made by the company in relation to its marketing strategy. Worth noting is that there are advantages and disadvantages of implementing an integrated marketing mix on the future corporate strategy of the business. Indeed, implementing an integrated marketing mix allows the management to remember and provide a good market organization in the corporate strategy of the business (Birnik, & Bowman 2007, p.303-310). Moreover, it facilitates the establishment of a strong and effective marketing campaign that will benefit the business. Additionally, such implementation helps the company to adopt a standard mode of allocating resources as well enabling the planning of the budget and effective marketing strategies and the implementation of the set objectives (Richter 2012, p. 162-170). The implementation of an integrated marketing mix helps in determining takeovers of new market offers. More so, it enables the management to carry out a research that will guarantee customer satisfaction. However, the implementation of an integrated marketing mix has a demerit in that it cannot apply universally to all Costa Coffee products. Moreover, we can only assess its effectiveness after implementation, which poses a great marketing risk. Additionally, marketing mix is prone to changes in the market forces and hence changes in market forces may render the implementation of an integrated marketing mix ineffective in the future. Nevertheless, an effective marketing philosophy will have positive influence on the future marketing success. It leads to sustainable marketing (Iyiola n.y, p. 1) that will establish the going concern of the company. At the same time, this will influence the sales turnover of the company since most customers will be able to access and afford the company’s products. Similarly, this will establish a competitive advantage for the company in that the company will produce and offer high quality products that satisfies the customer’s needs. Ultimately, we can deduce that an effective marketing philosophy will help the company to maximize its profits and remain competitive in the market. Conclusions In conclusion, I find that marketing mix is very significant in devising a marketing strategy. More so, various opportunities and challenges may influence marketing decisions. Ultimately, marketing mix has resultant merits and demerits in its implementation. Recommendations I therefore recommend that before implementing a marketing mix, it is advisable to conduct a market analysis to determine which marketing mix is effective for your company. More so, there is need for more research on marketing mix. Most of all, I recommend the application of an integrated marketing mix to establish a competitive advantage. Bibliography Birnik, A., & Bowman, C 2007, “Marketing mix standardization in multinational corporations: A review of the evidence,” International Journal of Management Reviews, Vol. 9 , Issue 4, pp. 303–324. Bowers, S 2012, Costa Coffee attracts nearly 4m customers a week, viewed 28 May 2013, http://www.guardian.co.uk/business/2012/dec/11/costa-coffee-sales-starbucks Costa Coffee 2013, Costa, viewed 28 May 2013, http://www.costa.co.uk/ Goi, C. L 2009, “A Review of Marketing Mix: 4Ps or More?” International Journal of Marketing Studies, Vol. 1, no.1, pp. 1-5. Iyiola, O n.y, Sustainable Marketing: Philosophies, Economies and Strategies for a New Consumer Metabolism, viewed 28 May 2013, http://www.academia.edu/308706/Sustainable_Marketing_Philosophies_Economies_and_Strategies_for_a_New_Consumer_Metabolism Poulter, S 2013, Costa, the coffee chain that keeps on growing, viewed 28 May 2013, http://www.dailymail.co.uk/news/article-2317419/Costa-coffee-chain-keeps-growing-Chain-open-hundreds-stores-UK-world.html Richter, T 2012, International Marketing Mix Management: Theoretical Framework, Contingency Factors and Empirical Findings from World-Markets, London: Logos Verlag Berlin GmbH, 2012. Rodenberg, J n.y, Costa Coffee vs. Starbucks, viewed 28 May 2013, http://rodenberg.nl/publications/publications/COSTA_COFFEE_vs_STARBUCKS.pdf Read More