Costa operations include a leading brand, nearly 4,000 retail outlets with highly trained baristas . Just as its coffee helps people to have a warm and refreshing experience, it expects its team members to touch other peoples lives similarly. Ever Wondered If You Can Get a Free Refill at Starbucks?, Is Starbucks Open 24 Hours? Costa coffee was founded by Italian brothers Bruno and Sergio in 1971. However, higher VAT usually means lower sales numbers. Costa Coffee is a British coffeehouse chain, headquartered in Dunstable, England. The company has a strong legacy since it was started in the year 1971, 4. The Costa Coffee brand already has a premium status in all its markets. (Repeat as necessary). The beans at Costa are sourced from various global locations and are roasted dark in order for the process to be repeated easily. For example, brands like Starbucks intensify competition with Costa Coffee since both offer similar products at a similar price level. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Whitbread is financially strong having properties/infrastructure to support Costa coffee. 5. Good Together being a force for good. Costa Coffee is constantly innovating to make it easy for customers to buy coffee. Being accountable in all their actions and meeting customer expectations is what Costa Coffee is all about. The one and only Costa Coffee! The deal was thought to be worth []. Using mergers and acquisitions correctly can help brands to penetrate new markets and increase their revenue. Below are the Strengths in the SWOT Analysis of Costa Coffee : 1. To ensure that the operations are being run organized in all the branches, Costa Coffee has employed more than 18,000 skillful employees. Brands want to be recognized because their customer base increases with recognition causing their revenue to increase. It wants all its partners and team members to work towards this goal with a clear focus and love for the world of coffee. The Costa (ex Whitbread) Book Awards Taster (a book of excerpts from award nominees) is an opportunity to increase the length of visits. Enter the email address you signed up with and we'll email you a reset link. Largest coffee chain in the UK with 1,357 high street stores, 1,032 franchise stores and 7,100 Express machines [1] 3. As a result, Costa Coffee needs to improve its game to stay relevant in the market. It certainly seems to work well for Costa Coffee. Our founders, Sergio and Bruno Costa, instilled this belief at our inception almost 50 years ago. Market Segmentation. Coffee in its product portfolio is what it is known for and thats why it is a star in the BCG matrix. We are the platform for sharing and exchanging study documents, knowledge and useful information for your work, business and learning. The recent increase in its coffee prices has really annoyed its customers. Heritage at Costa. For example, Starbucks is the biggest coffee chain in terms of revenue since it generates more than $23.52 billion annually. Throughout the many years since the Costa brothers opened their first roastery, weve still taken inspiration from their passion to craft the finest and richest cups. It wants them to have the courage to experiment and try out new ideas with the ultimate goal of enriching the customers experience. Coffee Industry Reports. Moreover, the coffee culture is still new to the developing nations and in the developed nations there is a lot of competitions between the local, national, and international players. They have managed to forge a path into the mainstream market that seems to elude many specialty, artisanal coffee shops. It works with coffee-growing communities around the world to source high-quality coffee beans. endobj The advantage of this strategy is saving the cost in market survey. Lets now proceed to Costa Coffees SWOT analysis. This shows the companys confidence in its products. They are better at making emotional positioning. Our range includes double or single wall cups, as well as coffee cup sleeves. This shows its ambition and focuses on being the best coffee shop brand in the world. Costa Coffee not only ensures that the consumer gets the best coffee and adopts the right measure to source coffee. No stone was left unturned in defining the new store experience, with the vision to align the whole experience with Costa Coffee's brand personality traits of Courageous, Playful and Passionate. Mission- To save the world from mediocre coffee. This may lead to a decline in the demand for Costa Coffee products. The coffee chain offers a wide variety of products including coffee, milk shakes, cakes, sandwiches etc. Regarding such statistics, China may be seen as the brand new El Dorado for Western brands of coffee. Coffee is important to us, but so is the health and wellbeing of our customers. 2,216 units of Starbucks . can be threats. 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. Therefore, adopting the proper marketing methods can help brands increase their customer base and revenue. Then in 1995 Costa was sold to Whitbread Company as its subsidiary. From the analysis, Starbucks should focus on renewing its brand name across all the major market segments where it has significant market share . 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. Multinational brands always suffer when wars and conflicts occur between countries because their operations get affected due to war. Costa coffee uses a mix of geographic and demographic segmentation strategy to target the customer and satisfy their needs. This SWOT analysis section deeply analyses some of Costa Coffees weaknesses. Many brand names have positive values which extend beyond the particular product. The brand positioning statement shouldn't be long. This includes their signature blends available as ground or whole bean and their expanding ready-to-drink (RTD) options. . The blend named Mocha Italia is one of the signature blends today in all Costa Coffee outlets. It now has 3,401 stores in 31 countries of the world. A wide range of products is offered by Costa Coffee. 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. According to the Brand Strength Index (BSI), which looks at the efficacy of a brands performance, it ranks only second to McDonalds in the restaurant sector, having recently overtaken US rivals Starbucks. 2017, Competitive Positioning Analysis of Costa Coffee. In 2019, the Coca Cola company had acquired the Costa Coffee company for $5 billion. 6. This is why, when brands get big, they increase the number of products placed on their shelves. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Reputation for high quality coffee. We started off this article by shedding light on the history and current operations of Costa Coffee. As well as over 4,000 coffee shops, Costa operates 15,000 Express coffee machines, a . There are several brands in the market which are competing for the same set of customers. Costa coffee is present at more than 3000 locations worldwide, 3. Soon the demand for Costa Coffee increased across London. Consumers are always looking for cheaper substitutes available in the market. Costa Coffee ranks well in the market, as it stands out compared to most of the other similar companies in the industry (Costa, 2013). 2 0 obj Its brand of coffee has an Italian origin, which is a differentiation strategy. It is the biggest brand of the coffee since now. Now, lets proceed further and discuss some of the strengths of Costa Coffee. In some locations staff provide a friendly and efficient table service; this in turn ensures a smoother visit for customers and employees alike. JavaScript seems to be disabled in your browser. Healthy eating is not particularly well catered for apart from fruit juices. For Costa Coffee, coffee is everything, and the world revolves around coffee for it. This initial advertising is sure to establish 'Costa Coffee' as a brand name for the leading New Zealand Coffee shop in future. Such reports have made people conscious of their diets. The brand positioning statement should be short, simple and leave no room for ambiguity. Costa Coffee wants to ensure that they serve the best coffee to the people, and at the same time understand their responsibility towards their community and planet. Recessions are devastating for brands since they end up making people poor. Keep the statement around 50 - 60 words and try to fit it into two sentences. High level of international presence - the 2 nd largest coffee chain globally with 3,401 stores across 31 countries. The emphasis on biscuits and muffins for sharing is something new. Continue reading more about the brand/company. Costa coffee uses a mix of geographic and demographic segmentation strategy to target the customer and satisfy their needs. The threats in the SWOT Analysis of Costa Coffee are as mentioned: 1. %PDF-1.5 Costa Coffee wants people to have the best coffee drinking experience and considers average coffees as beverages that anyone should not serve. It also has a very clear vision statement . Positioning is usually the reason why customers buy a specific brand whose . x[YsG~W(:"T4_@c9 pisw=_lolUiv~}v}(9~s_XDV%9gI2&eR2AOwM:elL)UZMp 5#9YU:|NSp)p5HN)'7@uHI2N0H$2XjW,y&n Z87`3uhOE;; cY. Monolithic brand architecture Single master brand. endobj In 2019, the market scale of coffee in China reached US $10 billion, which only US $7 per person. Here is my take. 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. Therefore, your role is not to give a historical overview of the company - but instead to focus on the brand and branding elements. Our Vision is to become the World's Most Loved Coffee Brand. And just like our coffee, our story is unique. Costa Coffee has undoubtedly made its place in the hearts of the people of Britain with its magical taste. We have big growth plans, whether through our stores, our Express machines, or the beans we sell. The Coffee Market in China . They are better at making emotional positioning. Additionally, this is to ensure that milk does not dilute the flavour of the coffee. Costa coffee has large product portfolio in the beverages segment which is helping the company to compete with the peer companies. 3VNH!kx:,-u|?ZL6-`_60Y]g*)gWF| \fy( `8m- Brands have names, lifecycles, and personalities of their own all searate from the corporation. On its official website, in the About Tesla section, you can find a summary of the company's past achievements and future goals. 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). Many brand names have positive values which extend beyond the particular product. Therefore, if a brand has high-priced products, consumers will look for substitutes available in the market. Your brand positioning statement should be easy to read. The advantage of this strategy is saving the cost in market survey. Perhaps its success lies in the fact that Costa Coffee is willing to adapt and cater to the demands and expectations of consumers. Regional integration is a global trend nowadays and also an opportunity for Costa's expansion. These values are Passion, Courage, Warmth, and Trust. By doing so, it will be able to receive the benefits of globalization and gain access to markets in developed countries. The coffee brand got seriously affected after suspending its operations in Russia because the Russian market used to add almost $2 billion to the revenue of Costa Coffee. SWOT Analysis is a proven management framework which enables a brand like Costa Coffee to benchmark its business & performance as compared to the competitors. It also has a very clear vision statement, wherein it boldly states that it wants to become the worlds most loved coffee brand. 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. May 2019 - Jun 20223 years 2 months. This clearly shows their love and passion for good coffee. Costa Coffee's claim to fame is their delicious Mocha Italia blend, while Starbucks ' claim to fame is their signature Frappuccino. While this is a reputation the sector is keen to shift, the nature of perfectionism can be alienating to the average customer. But if sales decline in this region, it could negatively impact the companys brand image. The brand names and other brand information used in the SWOT Analysis section are properties of their respective companies. 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. Most of its stores are in developed countries like the UK and other European countries. Here's What We. Costa Coffee has headquarters in the United Kingdom and mainly operates in Europe. The market provides opportunities to every brand. Since we have discussed enough the history of Costa Coffee and how its operations evolved with time. He is currently the Brand Manager at 8oz ; Eight Ounce Coffee by Wyld where he will overview the Strategic Development and Growth of this promising brand . 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. Costa Coffee position for its product as high quality blended coffee beverage which using affordable pricing strategy. Costa Coffee envisions becoming the strongest brand. SWOT analysis of Costa Coffee analyses the brand by its strengths, weaknesses, opportunities & threats. Costa coffee is present at more than 3000 locations worldwide. Costa Coffee is one of the leading brands in the food & beverages sector. This association helped Costa Coffee scale globally, as it now had access to better resources and investments. Companies in this industry have to face the entry and exit barriers as infrastructure and branding cost are involved in the setup of the company and if the business is unable to attract customers then its just the loss for the franchise owner. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. 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 . Costa Coffee has achieved an internationally recognized brand name for coffee. Since its inception onto the market through the opening of its first shop based on . Whether by opening DriveThru Costas, developing new types of stores and opening in new locations, Costa Coffee want to welcome all corners of the globe to the Home of Irresistible Coffee. From our carefully roasted signature blendchosen after the Costa brothers blind-tested 112 variationsto our iconic Flat White and many other options. The structure of brands within an organisational identity. Initially, the Costa brothers opened Coffee shops across the UK. And just like our coffee, our story is unique. . Limited presence in the developed or developing nations is helping the company to remain focused on what they have and control its operational cost thereby increasing the profit. In 2010, it was voted as the nation's favorite coffee shop. For the best experience on our site, be sure to turn on Javascript in your browser. Every brand possesses strengths that help it retain its market position. Food is well presented but lacks an authentic Italian appeal; it has also stretched into very general snack range for people on the go. Therefore, a brand must first improve its service quality if it wants to build a solid customer base. Costa Coffee currently holds the 2 nd biggest brand of the world. By Stuart Smith. Like all professionally managed companies, Costa Coffee has a core set of values that it expects all its partners, associates, and team members to follow diligently.