Marketing Plan for Costa Coffee

Marketing Plan for Costa Coffee

Introduction

Costa Coffee is an international coffee brand, the largest coffee chain in the UK and second-largest in the world behind Costa Coffee. For those concerned that an American behemoth has hit Warminster, think again; the headquarters for Costa is in Dunstable, and is a wholly-owned subsidiary of Whitbread. The Costa Coffee brand was founded in London in 1971 by two Italian brothers Bruno and Sergio...Costa. It was originally, interestingly enough, a wholesale operation supplying roasted coffee to the catering industry and niche Italian coffee shops. Whitbread acquired it in 1995, and since the takeover has grown to over 1700 stores in 28 countries.

Current Market of the Coffee Market

Strengths

The employee orientation of Costa Coffees is the internal strength of the firm. The consistency of operations also provides cost savings to Costa Coffees. The company has successfully articulated a positive culture within the Costa Coffees, which has resulted in motivated workforce. According to the CEO of Costa Coffee, “We built the Costa Coffees Brand with our employees first, not with consumers. Because we believe the best way to meet and exceed the expectations of our customers was to hire and train great people, we invested in employees” (Costa Coffees Annual Report, 2007). The SWOT (Strengths - Weaknesses - Opportunities - Threats) is a tool for strategic analysis of marketing plans of a company. It combines the study of internal and external forces and weaknesses of an Costa Coffees, territory, sector, etc. with the opportunities and threats in its environment, to help define a marketing strategy (Kotier and Keller, 2009).

The purpose of the analysis taken into account in the strategy, both internal and external factors, maximizing potential strengths and opportunities and minimizing effects of weaknesses and threats. Most of the time this analysis conducted in the form of meetings bringing together people involved in the strategy or experts (Earls, 2002). To understand, comprehend and have a referral marketing strategy and information, it considered of considerable interest to show the current situation of a company that could make the company leader of the market and challenge the company can face in implementing marketing strategies (Armstrong and Kotier, 2007). From the analysis of marketing strategies of Breakfast Coffees industry at Wolverhamper following strengths, weaknesses, threats and opportunities identified.

Weakness

The inappropriateness of expansion locations results in two Costa Coffees store too close to each other.

Threats

The biggest threat facing Costa Coffee is the possibility of increased competition or over expansion by Costa Coffees itself. Costa Coffees need to maintain consistency throughout it stores around the world. This issue is more important now, as Costa Coffees is looking to expand geographically. It is also important to maintain effective supply chain management in order to curb operational risk. It is also necessary to make sure that cost of expansion does not make coffee too expensive.

Opportunities

Global expansion is the best opportunity for Costa Coffees. Costa Coffees should move into emerging markets such as India, as these markets not only provide new market but ...