Limited marker share growth owing to many substitutes available from competitors to local players at every location. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. For example, several brands suspended their operations after war broke out between Russia and Ukraine. Today the brand Costa Coffee is the second largest coffeehouse chain globally and the largest in the UK. In 2018, it was acquired by Coca-Cola for 3.9 billion, a move designed to tap into the . You can download the paper by clicking the button above. Costa Coffee must bring down its prices before consumers switch to other brands. It also has a very clear vision statement, wherein it boldly states that it wants to become the worlds most loved coffee brand. Marks for each section are given out of five stars, while the overall rating is given at the end of the review. Strengths of Costa Coffee. Responsible business, people all focus on supporting each other, the communities that grow the products that Costa Coffee sell, the wellbeing of customers and teams and Costa Coffee impact on the environment. Starbucks - 2,216 Locations. Costa Coffee is constantly innovating to make it easy for customers to buy coffee. 2023 Costa Limited. Wider product range compared to its main competitor Starbucks. It had 2,512 stores operating in Europe by 2016. Enter the email address you signed up with and we'll email you a reset link. This is what drives consistent sales. Long-standing parent company Whitbread owned and operated Costa Coffee since its days as a 41-brand small chain. Please Enter Your Delivery Postcode for Most Accurate Product Availabilty and Delivery Estimates. It has positioned itself on the product basis, where it ensures that quality wise every cup of coffee leaves a lasting impression on the customer. Since the 2018 acquisition Coca-Cola has already added 1,200 Costa Express self-serve machines to Costa's pre-existing 8,000+ global portfolio. 5. The marketing plan of Costa includes current market situation, target marketing, market segmentation, and strategic planning. Additionally, since the company purchased self service machines, customers can grab a Costa coffee anywhere from the hospital to the office. US brands dominate the top 25 list, with only three non-US brands in the ranking - Canadian brand Tim Hortons, ranked 6th ($5.5bn), Costa Coffee, ranked at number . In the end, we also shed light on the threats present for Costa Coffee that are to be dealt with timely. With unrelenting passion and love for coffee, the company aspires to be the worlds most loved coffee brand, be it among customers, partners, associates, and team members. Coffee is important to us, but so is the health and wellbeing of our customers. The Costa Coffee brand already has a premium status in all its markets. They are better at making emotional positioning. Costa Coffee needed more space to establish a bigger roastery. Brand *** The Costa brothers' heritage story is giving way to a more corporate feel for the coffee chain. Costa has a strong presence, with 400 stores, but the passion for the brand may be fading. Also, Costa Coffee's brand positioning can also follow Starbucks's positioning. So if you visit Costa Coffee anytime, youll always find something for yourself. A customer of Costa coffee is millennial in the age group of 15-45 years who like to experience the innovative and blended beverages offered by Costa coffee. Coupled with this, in 2019, Costa Coffee diverted over 7,000 tonnes of waste from landfill and removed 45 million plastic straws from its stores. Brand values are important to longer term extension of activities. Brand extensions are built by descriptors. Then in 1995 Costa was sold to Whitbread Company as its subsidiary. Anthony Muganda. Costa Coffee's revenue increased again in 2019; Costa Limited reported revenues of 1.34 billion British pounds in the fiscal year ended February 28, 2019, up from 1.29 billion in the previous year. Furthermore, we offer a range of low minimum order quantity (MOQ) options. 1. Each week in association with retail and marketing consultancy Pragma, MarketingWeek.co.uk looks at a high-profile UK brand, assessing its performance against a range of criteria and offering suggestions to improve its overall score. Part of Costas success lies in its ability to reach a middle ground. The article below lists the Costa Coffee SWOT, competitors and includes its target market, segmentation, positioning & USP. Popular British coffee brand now going global with innovative products, People looking to go to have a coffee and snacks at a hangout place, Youth in the middle and higher income groups. Expanding in various consumer markets with a higher youth population who has a high purchasing power can be an opportunity for the company, 3. Costa Coffee founded in 1971 (coincidentally the same year as Starbucks ( SBUX )) and has been part of the Whitbread group since 1995 and considers itself to be the UK's favorite coffee shop brand . The companys mission, vision, and business growth are all driven by these values. It also has a very clear vision statement . In addition to their staple offerings, the brand is always debuting new drinks, such as their Frostino blended drinks. Long-standing parent company Whitbread owned and operated Costa Coffee since its days as a 41-brand small chain. Brus market share as up to end of 2011 - 50.2% against Nescafes 49.2% Bru has established its own . These core values also help it retain unwavering loyalty among its coffee customers across the world. Costa Coffee's claim to fame is their delicious Mocha Italia blend, while Starbucks ' claim to fame is their signature Frappuccino. Our range includes double or single wall cups, as well as coffee cup sleeves. Please Enter Your Delivery Postcode for Most Accurate Product Availabilty and Delivery Estimates. All the brands that operate in the market are looking for ways to increase their brand recognition. This strategy will make the company develop in a passive position. And just like our coffee, our story is unique. The Costa Coffee story begins in 1971 when Sergio and Bruno Costa arrived in London from Italy with a passion to sweeten any bitterness in life by way of making great tasting, bitter-free coffee a part of everyday life. Costa Coffee wants people to have the best coffee drinking experience and considers average coffees as beverages that anyone should not serve. Costa Coffee is a well-known coffee brand that operates in different parts of the world. There is no other differentiation between sub-brands than descriptors. They started a small roastery committed to . Looking after customers entices them both to return again and again and recommend company to their friends and family. At a physical level ( customers recognise Costa coffee as emphasis of luxury and comfort- with style. Perhaps its success lies in the fact that Costa Coffee is willing to adapt and cater to the demands and expectations of consumers. Functional value the utility perceived from the brands functional capability. 2 0 obj 1 0 obj Crafted to be the best. Thats why Costa Coffee shifted to South London. Costa Coffee has a geographical presence limited to a specific region. Jul 2020 - Present2 years 9 months. Our founders, Sergio and Bruno Costa, instilled this belief at our inception almost 50 years ago. Companies try to increase the number of their strengths so that they can dominate the market. This can increase revenue and profits for Costa Coffee. At a physical level ( customers recognise Costa coffee as. The one and only Costa Coffee! As compared to other competitors the taste of the coffee of costa is very unique and they provide many of the variety in flavors of the coffee to attract more customers towards them. The combination of ubiquity and anonymity of its branches has helped the company create establishments where customers feel comfortable and at home. Your email address will not be published. The company leads the park in most of the countries in Europe where it operates. The brand names and other brand information used in the SWOT Analysis section are properties of their respective companies. The recent increase in its coffee prices has really annoyed its customers. % So, lets look at the history of Costa Coffee before proceeding further. Introduction. As the world is progressing in terms of technology and medical science, research shows that a high sugar intake can harm human health. Costa Coffee shows its love and ambitions for coffee through its vision statement, Our vision for the future: to be the worlds most loved coffee brand. Such brand recognition will act as a catalyst to increase the annual revenue of Costa Coffee by increasing its customer base. Then, in 2018, it was bought out by global beverage superpower Coca Cola for $4.9 billion. More so, in 2021, the company announced it changed the lining of their takeaway cups to a plant-based plastic, rather than an oil-based lining. If there is not vacant position around Starbucks, this strategy will not . Jammy Dodgers are a popular British biscuit that is typically made from shortcake and filled with a raspberry or strawberry flavoured jam. The homey feel of Costa Coffee branches has helped the company become a leader in terms of revenue. Costa Coffee, a coffee brand and cafe, offers many products with high sugar levels. Costa Coffee mission statement is built around coffee, its key product. Brands that offer a wide range of products that cater to the needs of different types of audiences achieve success. It has planned to adopt measures that are going to create less impact on the environment. However, before we carry out the SWOT analysis, you need to know what SWOT analysis is. In-depth industry statistics and market share insights of the Coffee Market sector for 2020, 2021, and 2022. Branded brand architecture. For example, Starbucks is the biggest coffee chain in terms of revenue since it generates more than $23.52 billion annually. Since we have also shed light on the purpose of a SWOT analysis, lets proceed further and start the Costa Coffee SWOT analysis. And this text is soaked in brand positioning statements!. This clearly shows their love and passion for good coffee. 31,000+ Costa Coffee Express machines. The brand has more than 3800 stores in 32 countries worldwide and 2000 stores in the UK. Costa coffee was founded by Italian brothers Bruno and Sergei in 1971. For example, the sentence "Combining safety, performance, and efficiency, Model S has reset the world's expectations for the car of the 21st century" shows that Tesla positions its brand as the safest . 4. The structure of brands within an organisational identity. The list of Costa Coffees green credentials includes the worlds most sustainable roastery, which is powered by 100% renewable energy. SWOT analysis of Costa Coffee analyses the brand by its strengths, weaknesses, opportunities & threats. Coffee in its product portfolio is what it is known for and thats why it is a star in the BCG matrix. Most customers like to know what to expect when ordering something, and they want to understand the process. Big coffee chains are considered the key players in the coffee industry. To provide the best coffee Costa Coffee has made it a mission to ensure people dont settle for anything less than good coffee, and it aims to solve this need by serving them with the best coffee possible. Costa proud to serve and Costa at home. Get a delicious, caffeinated jolt. As a part of its customer well-being process, it sources all its raw materials like coffee beans, tea leaves and many others from Rainforest Alliance Certified farms. Such reports have made people conscious of their diets. Therefore, a brand must first improve its service quality if it wants to build a solid customer base. From our carefully roasted signature blendchosen after the Costa brothers blind-tested 112 variationsto our iconic Flat White and many other options. To learn more, view ourPrivacy Policy. Costa Coffee not only ensures that the consumer gets the best coffee and adopts the right measure to source coffee. Business channels Costa family Costa Coffee Stores. If taken as stand along business, it can be worth more than 1 billion. The advantage of this strategy is saving the cost in market survey. Intense competition exists in the food and beverage industry since countless suppliers supply similar products in the market at different prices. In Costa Coffee SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. This SWOT analysis section deeply analyses some of Costa Coffees weaknesses. Economic recessions or a pandemic can hurt the business as people reduce their expenditure. May 2019 - Jun 20223 years 2 months. It doesnt have much presence in different countries. Try to avoid long sentences, jargon, and complex concepts. The Costa Coffee story began when the Costa brothers, Sergio and Bruno, decided to make a great cup of coffee a part of everyday life in London. Now 50 years later Costa Coffee is beloved throughout England and considered the country's favorite coffee brand. Costa coffee is a premium brand which does not rely much on advertisement on TV, print media etc. This must have felt good, but you must be wondering why I asked you to do that. 3. It makes customers view a specific brand in a unique way by associating emotions, traits, feelings, and sentiments with it. Although the market for coffee varies from country to country, the coffee industry is said to be highly competitive since it has a very high number of consumers and a high number of suppliers. It wants all its partners and team members to work towards this goal with a clear focus and love for the world of coffee. Following are the opportunities in Costa Coffee SWOT Analysis: 1. U.K. chain Costa Coffee use customer data from multiple sources to create sharply targeted communications that drive a loyalty program that actually works for buyer and brand. In 2019, the Coca Cola company had acquired the Costa Coffee company for $5 billion. . As a part of its product extension, Costa coffee started offering canned coffee which is available at several retail stores, 7. JavaScript seems to be disabled in your browser. COSTA and COSTA COFFEE are registered trademarks of Costa Limited. The acquisition of Costa from parent company Whitbread PLC is valued at $5.1 billion and will give Coca-Cola a strong coffee platform across parts of Europe, Asia Pacific, the Middle East and Africa, with the opportunity for additional expansion. A strong brand positioning strategy is an absolute must for all businesses striving for success and the proof is in the numbers. If it carries out this plan, it will not only be able to expand its portfolio but also learn a lot from the pre-existing brands about new markets. Once a customer walks through the doors of a Costa Coffee shop, they could be almost anywhere in the world. One of the most passionate brands in the coffee business, Costa Coffee takes immense pride in its foundations and its growth journey. Costa Coffee had become a significant brand in the coffee industry till 2019, and thats when Coca-Cola decided to acquire the Coffee brand. Emotional and Psychology needs. Acquisitions or forming strategic alliances with other coffee companies can help boost the business for Costa Coffee, 2. The Coca-Cola Company. Save my name, email, and website in this browser for the next time I comment. The external slogan is a creative interpretation of that brand positioning. These threats must be dealt with in time before they start to damage the brand. Costa Coffee has always been able to maintain its position as the leading coffee brand of UK for more than a century. In its quest for success, Costa Coffee is ready to grow and expand in new markets and formats so that more people can experience its coffee and enjoy its taste. Coca-Cola has started 2022 in a strong position, posting a 16% rise in first quarter revenues to $10.5bn compared to the same period in 2021. The coffee seller believes that "people in main urban populations can afford . The brand positioning statement shouldn't be long. Senior Global Commercialization/Product Leader, Costa Coffee the Americas. A SWOT template makes it easy for analysts and readers to analyze the internal and external factors that impact an organizations operations. As new channels emerge the opportunities for brands multiplies, but with control over place diminishing, what can marketers do to reclaim influence over this often forgotten P? Rock n roll music event in hunt for UK sponsors, Jeyes household brand products sponsor The Bill, Customer focus and place: Your Marketing Week, Robinsons unveils first major rebrand in a decade to kick off fresh marketing push, How Riot Games topped the Netflix charts by bringing fantasy into reality, What marketers are doing to ensure place is part of their remit. The annual revenue of the brand is more than $1 billion. The brand represents ( manliness , mature experience and wit. Soon the demand for Costa Coffee increased across London. Almost 50 years ago, Sergio and Bruno Costa came to London and discovered their calling - to bring great tasting coffee to the tea drinkers of Great Britain. It is followed by Dunkin that has 26% market share. (What Times Does Starbucks, What Starbucks Drink Has The Most Caffeine? For many customers, the exclusive image portrayed by the specialty coffee can be daunting. Monolithic brand architecture Single master brand. As we carried out the SWOT analysis, we learned that Costa Coffee has strong brand recognition and a diverse portfolio, which acts as its strengths. Having a strong teamwork ethic helps make Costa a great place to work. Its mission is to provide the world with authentic coffee flavors. The company has a strong global presence, with 4,000 shops in 32 countries. moving to South London where the brothers transformed a huge plot of grassland into a brand-new roastery. Costa Coffee is present in a limited number of countries as compared to some of its global competitors, 2. Social value the utility being associated with a particular social group. Costa Coffee envisions becoming the strongest brand. From the 70s into the new millennium, Costas reputation for artisan quality coffee increased dramatically. The findings presented that the brand positioning strategy of coffee shops in Turkey are significantly related to the quality of the factors, which Starbucks achieved and Costa Coffee withdraw . We can also help you brand your takeaway coffee cups with details of your business, allowing you to communicate the cups recycling qualities to customers. Costa coffee brand audit. Its stores offer a high-quality environment where customers feel welcomed and can relax and shop for their needs on the same visit. As a result, Costa Coffee needs to improve its game to stay relevant in the market. The content on MBA Skool has been created for educational & academic purpose only. The Costa Coffee brand operates over 3000 outlets, while Costa Express has over 4200 locations worldwide. It is globally recognized and reputed by its tremendous tastes of foods especially in the form of Coffee. The opportunities for any brand can include areas of improvement to increase its business. Costa Coffee was also among those brands that announced the boycott of Russia. endobj Organizations in a specific part of the world fail to maximize profits. Brands that want to grow and increase their revenue must have a global presence. The love of the people of the UK for Costa Coffee can be clearly seen after their favorite Coffee brand was voted UKs favorite coffee shop consecutively for the twelfth time. For example, cakes, muffins, cookies, and drinks served at Costa Coffee have high-sugar substances. Brand positioning statements are internal documents, and when this positioning is ready to go public it is used to brief external campaigns. 1. Shops opened across prestigious locations in London, and for the last 10 years Costa has been voted the UKs favorite coffee shop. For Costa Coffee, coffee is everything, and the world revolves around coffee for it. Our state-of-the-art self-serve coffee bars combine our freshly ground beans, real milk and cutting-edge technology to deliver you a delicious drink on-the-go. (Repeat as necessary). At the time Whitbread bought Costa, it had 39 stores. 4. However, it has become very challenging for Costa Coffee to maintain its position due to many other brands offering similar services. stream Hi, I am an MBA and the CEO of Marketing91. The coffee compares well to other high street chains, and is the main attraction. We will try to have a deeper look at it. Customers at the heart. LIMITED TIME ONLY: Save 10% on 2 or more products with code COSTA10 | Free shipping on all items |. In 2010, it was voted as the nation's favorite coffee shop. What is a Mission Statement for Healthcare? COSTA and COSTA COFFEE are registered trademarks of Costa Limited. In some locations staff provide a friendly and efficient table service; this in turn ensures a smoother visit for customers and employees alike. The Coffee market in China has been steadily climbing for years. Costas own retailed coffee packs are positioned at the point of purchase, though it is questionable how this impacts on sales. At this time, the Costa brothers were distributing Coffee to renowned Coffee shops, restaurants, hotels, and other places. They have managed to forge a path into the mainstream market that seems to elude many specialty, artisanal coffee shops. In the UK, Costa Coffee has approximately 39% market share. Moreover, we also discovered that Costa Coffee has a limited international presence and unhealthy products, which is a weakness for the brand. Costa has a strong presence, with 400 stores, but the passion for the brand may be fading. It is practically the main profit provider of the company in the broad markets of UK. Pop in a Costa Coffee single serve pod. Brown (2019) reports that Starbucks maintains a massive 40% market share in the U.S. coffee shop market. Functional needs vs. McDonald;s retained its position as the second most valuable brand in the restaurant sector, with a value of $31.5bn, with KFC in third place ($13.4bn) and Subway in fourth ($7.7bn). Market position. It brings together people from different cultures, thus promoting a harmonious and progressive work environment, where everyone mutually respects each other. For example, cakes, muffins, cookies, and drinks served at Costa Coffee have high-sugar substances. Whether it is a digital platform or social platform, Costa Coffee has the strong presence in the media which is helping the company in creating awareness and thereby increasing its sales. Costa is targeting China's huge, emerging middle-class population who are becoming increasingly attracted to European-style coffee culture. Required fields are marked *. Since its inception onto the market through the opening of its first shop based on . The Number 1 brand Strategic business unit is a star in the BCG matrix of Costa Coffee B Project Marlow, and this is also the product that generates the greatest sales amongst its product portfolio. Another initiative of the company was to replace plastic straws with paper ones. Additionally, this is to ensure that milk does not dilute the flavour of the coffee. The strengths of Costa Coffee looks at the key aspects of its business which gives it competitive advantage in the market. Although Costa Coffee has more than 3,800 shops altogether, they are saturated in a specific region. You can also represent the findings of this SWOT analysis more effectively with the help of a SWOT Matrix or a SWOT table.