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Coffee shops essay

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Coffee shops essay
206 MKT Applied Advertising
Coventry University

Market Place Analysis
For Starbucks & Costa

Ovidiu-Lucian Panin
ID No: 4448639
Date: 28.02.2014

Contents

Executive Summary This study includes two of the biggest coffee chains within UK. Their analysis regarding segmentation, targeting and positioning strategy is described below. Also there is an approach for their existing adverting, unique selling propositions, media consumption, consumer behaviour and external factors

1. Introduction

The brand Costa Coffee is a leading UK high street coffee chain which was founded in 1971 and comprises (Costa, Costa Metro, Costa Express, and Proud to Serve Costa and Costa Drive Thru outlets). It also present a variety of outlet designs to accompany each of its formats, one is ‘Metro’ which suits the younger/urban consumers and the second one ‘Evolution’ which is aimed to more mature customers in provincial locations. Costa provides a wide range of coffee drinks ( such as espresso to Americano to macchiato and mocha) but not only drinks, it provides food items as well such as paninis, sandwiches, wraps, toasts, cakes, snacks, pastries and fresh fruit and yoghurt. (www.costa.co.uk) Starbucks entered the European market in May 1998 through its acquisition of 65 Seattle Coffee Company stores in the UK. The name and their logo come from aquatic terms, it was named after the first mate in Herman Melville’s Moby Dick and their logo is inspired by the sea featuring a twin-tailed siren from Greek mythology. It offers over 30 assortment and single-origin premium arabica coffees, as well as coffe based beverages and coffee such as: fresh-brewed coffee, hot and ices espresso, coffee and non-coffee blended beverages, Vivano smoothies and Tazo teas). It also provides fresh food such as: pastries, sandwiches, salads, oatmeal, yogurt parfaits and fruit cups. (www.starbucks.co.uk)

2. Segmentation, targeting and



References: Bob Handford. (2014). Prices London Coffee Shop Chains 2014 - Starbucks, Costa, Caffe Nero. Available: http://www.londontoolkit.com/blog/eats/coffee-shop-chains-in-london/. Last accessed 27.02.2014. CreativeClub. (2014). . Available: https://www.creativeclub.co.uk. Last accessed 23.02.2014. Costa. (2013). The Menu. Available: http://costa.co.uk/menu/. Last accessed 22.02.2014. Kotler, P., & Armstrong, G. (2006), Principles of Marketing, (11 ed.). New Jersey: Prentice Hall International, Inc. Mintel. (2013). Coffee - UK - August 2013. Available: http://academic.mintel.com/display/674968/?highlight. Last accessed 22.02.2014. Mintel. (2013). Coffee Shops - UK - October 2013. Available: http://academic.mintel.com/display/684211/. Last accessed 22.02.2014. Mintel. (2012). Taxing times for Starbucks?. Available: http://academic.mintel.com/display/643595/?highlight. Last accessed 22.02.2014. Mintel. (2013). Coffee Shops - UK - . Available: http://academic.mintel.com/display/684212/. Last accessed 23.02.2014. Mintel. (2013). Coffee Shops - UK -. Available: http://academic.mintel.com/display/684213/?highlight. Last accessed 23.02.2014.

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