Marketing Research on Costa (Course Work)

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Marketing mix research and proposal for Costa in UK

Huirao Rong
Lulu Shen
Wangzijun Luo
Yingzi Chen


1.1 Collected data and the reasons1
1.2 Data collection method(s)1
1.3 Difficulties2
1.4 Improvement2
2.1 Introduction1
2.2 SWOT Analysis1
2.3 Product2
2.4 Price4
2.5 Place6
2.6 Promotion7
2.7 People& Process& Physical evidence9
2.8 Conclusion10
Table 1 Number of Coffee Outlets14
Table 2 Market Segmentation14
Questionnaire of COSTA15


1.1 Collected data and the reasons
The data we collected comprise primary and secondary ones. We adopt close-ended questionnaires as primary data which concerns about existing product, target objectives consuming conduct, recognition extent of Costa, plus general applying situation of Costa express. In seeking to reinforce the referencing data, we consult relevant textbooks, academic journals and company’s official information by means of both libraries and internet.

1.2 Data collection method(s)
We have chosen to adopt quantitative analysis questionnaires which consist of closed-ended questions with multiple-choice options via paper and the Internet as our data collection methods. Using internet surveys efficiently facilitates us to access to larger range of uncertain targets with less constraint and while adopting the paper questionnaires provide us with straight and direct responses. As the statistics we demand are possible to be listed as possible responses, it is reasonable to employ the quantitative analysis which enables us accessible to collect and analyse the figures. Meanwhile, we aim to avoid the potential problems linked with open-ended questions and interviewer bias. 1.3 Difficulties

1. The data tend to target a less amount of interviewees, with the interviewees mostly in Loughborough, which is more difficult to reflect the whole UK marketing quotation, owing to narrow sampling 2. Certain figures in primary data we collected are different from the outcome we expected originally. Some questions are irrelevant to our survey objective. 3. Due to the privacy issue, we suffer a large number of rejections during the interview and many questionnaires are invalid, which increases our teamwork workload. 1.4 Improvement

1. We upload the questionnaire on the Internet to achieve more figures for our primary date, in order to expand the scope of target interviewees, which is more reasonable to evaluate the UK market. 2. In addition to setting questionnaire, we collected many figures from other approaches, for instants, library academic books, searching academic journal and other relevant data online, to support our survey objectives. 3. Faced with a large number of rejections, we try to find the interviewees who seems enjoying leisure time to answer our questionnaire. After we collected all questionnaires, we verified each sample of each respondent to ensure we acquiring reasonable and reliable data.

2.1 Introduction
In the UK's largest autonomous study of the coffee shop market, operated by Allegra strategies in 2011, 40% of consumers vote for Costa as their favourite UK coffee shop (Allegra Strategies Project Cafe report, 2011, cited in Whitbread, 2012). As a coffee brewing industry, Costa has developed significantly over the past 5 years and is now assessed to have 40% market share of all UK branded coffee shops, boasting over 1,400 stores well positioned (Whitbread, 2012). However, with a rapid expansion of Costa business, there is an intense competition coming from both the coffee outlet industry and fast food restaurants. Costa is in the face of challenges and opportunities nowadays. Some new marketing strategies should be taken to adapt to market changes. Then, we will analyse the marketing mix of Costa and try to make some proposals. 2.2 SWOT Analysis

Strengths| Weaknesses|
* A great reputation for products * A well-known brand...
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