The 7 Ps of marketing is a method encompassing seven distinct principles that professionals can use to create and employ strategies that attract and engage customers, motivate customer sales and increase revenue. What it thinks is that it needs to deliver the best value to its customers. 7 p's of starbucks by HIRA ZAIDI - Prezi The professionals on the other hand, always seem to be in the hunt for calming and serene locations to carry out unofficial or official business meetings. Companies can also use the 7Ps model to set objectives, conduct a SWOT analysis and undertake competitive analysis. The global market of branded coffee is thus expected to increase positively in the next five years; expected markets are Eastern Europe, Middle East, Asia Pacific, and South Asia. There following are major placement or distribution strategies: Now come to the Costa Coffee placement and distribution strategy. Based the placement consideration the product future will be assumed and it will help to get the better understanding in the concept of designing the efficient positioning and distribution channels. The theme has been designed specifically with the Costas consumers in mind to invite them to enjoy the best coffee in the true Italian style. Copyright 2017 2025. Customer felt amazed by the appreciation with combination of different service variation or in the decoration of the coffee in different symbols. All rights reserved LCHW. However it is present only in the top urban cities which adds to the positioning of Costa coffee. Customer have observed about Costa Coffee in different form with the title like Mocha which is delicious, Latte which is delicious, Americano which is delicious, Flat White which is delicious Expresses which is delicious and Cappuccino which is delicious. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Background of Costa Coffee The global renowned brand is Costa Coffee. Its unwise to ignore an area unless it is completely outside your control. With all these features, CC has expanded from UK to the global scene where it is out to grow even more in the times to come. Our free guide details 15 classic planning tools to help you use data and analysis to develop your marketing strategy. Economic downturns can lead to reduced consumer spending on non-essential items such as premium coffee beverages. The overall population in the UK and in the global market (China, India, and Eastern Europe) is on the increase. Hence the reputation is more that counts. High profile shopping malls, good looking theatre places, busy corporate areas and the place like is chosen to the placement and distribution consideration. Place is required for the display of the product. The most important reason is that coffee going consumer only slightly cut its spending on coffee and sandwich (30%). Costa has proved to be a first-rate spot for the purpose, as the sales figures suggest. 2009) When marketing FMCG the first 4P's: 1.) Daniel Berehulak / Getty. The payment for the consumption of the product is defined by the pricing methodology. Please share the article link on social media to support our work. Moreover, it has the policy of pricing at premier for Hot Chocolates by order of customer, Specialty Drinks by order of customer, Teas by order of customer and Infusions by order of customer, Cold Drinks by order of customer, Foods by order of customer etc. What Are the 7 Ps of Marketing? (Plus Helpful Examples) Complete Marketing Mix of Starbucks with 7Ps Included | IIDE Developing and emerging economies are growing fast due to globalization and the world economy is becoming interdependent. Having completed this analysis, it can be said that Costa Coffee has utilized the 7Ps of the mix very well; though there are still some areas where it should bring about some improvements. Pricing methodology in the marketing mix context is called touch area which can influence the whole company if there is any error occurred in the pricing strategy by observing as well as setting the target market where the customer will be willing to pay a high price if the product has the value to the customer. But Costa coffee also has many other varieties of products which are loved by people. Our academic experts are ready and waiting to assist with any writing project you may have. Similarly, Costa Coffee does not have a huge number of stores in total like some of its competitors. Before expanding into any market, its opportunities and risks have to be analyzed. A popular marketing model, the marketing mix is can also be referred to as the 7Ps framework for the digital marketing mix. What is MBA Skool . Leby, 2013. Costa coffee is also focused on building customer loyalty. [Online] Available at: https://www.costa.co.uk/about-us/. Lastly, Costa Coffee is susceptible to fluctuations in the global economy and political climate. The marketing mix or 7Ps is a foundation model in marketing. But bow a days social media has become the most important stage to promote a product. Moreover, it has always running dimension for its ice coffee like Frsotino by customer choice, Coffee Cream customer choice, Lemonade customer choice, and Mocha Cream customer choice. Promotion can penetrate the market. Skool, 2017. After the great success of it, it became the huge British Multinational Company. Would you mind telling me the date? The benefit of the premium pricing is that it defines some exclusive coffee which attracts a lot of customer due to its premium pricing. Costa Coffee operates 1069 stores in UK market as of April 2010, leaded them to become a largest British coffee chain in terms of stores. Costa Coffee is operating is business by the means of different outlets over the 31 countries. We've created the graphic below so you can see the key elements of the 7Ps marketing mix. Hence this would certainly increase the revenue generation. The market penetration strategy was aggressive in communication, product information, promotion, loyalty programs and prices. They consider different things in the selection of placement and distribution strategy. Bhasin, H., 2017. Some Costa products are not considered healthy by some customers. Political climate in as far as CCs near future markets are concerned (Eastern Europe, China, and India) are politically stable at the moment. Since the targeted market segments include only the higher middle and elite classes, therefore the venture is even more successful. 6.3 Place and Positioning The 4Ps are Product, Price, Place, and Promotion, while the 7Ps are the 4Ps plus Processes, People, and Physical evidence. Additional loyalty cards will continue to be available at all stores for customers to pick up when they purchase their next cup of coffee. SWOT Analysis of Carrefour (Carrefour SWOT), https://www.bbc.co.uk/news/business-64472214, www.costa.co.uk/behind-the-beans/our-story/history, https://www.walesonline.co.uk/news/uk-news/coffees-costa-much-say-angry-24142226. It has a sparse presence in India but has an amazing and mature franchise in UK. 3.1.1 Mark Size and its characteristics There is a belief of the Costa Coffee regarding the marketing mix policy of chosen the placement or distribution side they will able to link up with food lovers. Marketing Mix of Costa Coffee is the research topic for emphasizing on the marketing strategies developed by the firm. This was an enormous opportunity area for Costa Coffee due to was arriving to a new market that the population were aware of the product, however not every Pakistani was familiarize with Costa Coffee Brand. Costa Coffee offers a range of products that satisfy a variety of needs and desires of its customers. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. International franchising strategy has helped CC to reduce its distribution channel. But Costa coffee also has many other varieties of products which are loved by people. Prices/Fees:Subscription-based monthly, Software-As-Service modelbased on number of contacts in database and number of users of the service. Track and visualise your KPIs in real-time with Hurree. 3.2.4 Social/Cultural/Technological Costas new marketing strategy has been implemented to demonstrate to the public that Costa is the only brand with real coffee authority; they source, store, blend, roast, grind and extract all their own coffee. I am a student major in marketing. Miscela Blend: Costa has a unique blend we call the Mocha Italia 2. Nowadays Costa Coffee is a part of the Whitbread, family of brands. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. Job in Antioch - Contra Costa County - CA California - USA , 94531. In todays market environment, along with quality, Image and Status are also all important. Secondly, with their consumer insight campaign, Costa Coffee teams with Slater were successful in educating the UK people that there was another coffee brand that was also tastier than Starbuck or Caff Nero. Full Time position. Now come to the point, a company has the place to sell product but there is limited access or the customer has to get trouble to go there or the point of place is totally unknown to all, then everything will be vain even the company has the place to sell the product but it is not attracting the customer. In should be mentioned that Costa cappuccino has five times more caffeine than Starbucks (BBC, 2023). From the global product list it is found about Costa Coffee, that it has Mocha Coffee which is delicious, Latte Coffee which is delicious, Americano, Flat White, Expresses and Cappuccino. A product is the item of use that is produced by the producer according to demand of the consumer needs and demand to satisfy the consumer needs or for the specific groups. Over time, Booms and Pitner added three extended service mix Ps': Participants, Physical evidence, and Processes. The prices of all the products are comparatively higher at Costa. Starbucks's Marketing Mix (4Ps) Analysis - Panmore Institute It has also used it to build customer loyalty and become the No 1 in the coffeehouse market in the UK. Estimates suggest that though global economy is sluggish, per capita income is on the rise especially in China and India (CCs biggest prospective markets). Physical Evidence: Consistent branding across communications. The costa coffee and the probable acceptance of other valuable as well as the variation of product of Costa has become the highly valued for its customer from the any corner of the world those are actually the food loving people in the aspect of taking the tastes of the food. 3.2.3 Economic (global) *You can also browse our support articles here >. Costa Coffee is a British coffeehouse chain. 5. Whitbread PLC is The UKs leading Hospitality Company with franchises all over the world. This will make coffee become more expensive and less customers will be able to afford it. There is also variation in the tastes. Product in the marketing mix of Costa coffee - The main product of the firm is Coffee. It has used the marketing mix to create its own brand identity. Opportunities for growth include international expansion, product innovation, and strategic alliance. The marketing mix, also called 4Ps and 7Ps of marketing, refers to a set of actions that a company uses to promote its brand in the market. Do you have a 2:1 degree or higher? Thus consumer base is rising. But this is offset by the outstanding quality and discerning tastes at Costa. Richard D. Irwin. "A small coffee shop with delicious tasting coffee, you cannot ask for more." more. [Online] Available at: http://www.redbrick.me/lifestyle/10-facts-costa/ [Accessed 11 January 2018]. The 7Ps of The Marketing Mix: Streamline your Strategy - Hurree It is well-known for its handcrafted coffee beverages, delicious food offerings, and warm atmosphere, all of which have contributed to its success. The creator of the 7Ps of marketing is E. Jerome McCarthy in 1960. The Marketing Campaign Planning toolkit contains: Start your Digital Marketing Plan today with our Free membership. Their first coffee shop was in Vauxhall Bridge Road, London. Morning Lavender Cafe. Marketing Strategies and Organization: Structure for Service Firms. They will value Costas commitment to their satisfaction and realize that luxury comes at a cost. This is a top-level overview; you would take this into greater detail and ask the following questions: 1. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. Another issue is related to the product mix concept that is to keep the quality of the product up to the marks as the satisfaction of the customer can be achieved the product of the company. Comment * document.getElementById("comment").setAttribute( "id", "ac4d873503a333f2d729e0e41fcdb1db" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved, Liked this post? Coffee: More than 30 blends and premium coffee . Moreover, the utilization of the appropriate knowledge management tools is necessary for their products to reach out to people even in different cultures. Products include coffee, teas, hot chocolate, a wide range of bakery items, and a range of sandwiches, salads, and soups for lunch as well as breakfast. Compared to its competitors, such as Starbucks, Costa Coffee invests relatively less in marketing and promotional activities. It understands the value of its brand and therefore puts a lot of thought into how it prices its products. Coca-Cola announced on Friday that it would buy British coffee-shop chain Costa Coffee for $5.1 billion. These are Product, Price, Place and Promotion. 4.1 Strengths of CC. For instance, it announced in 2021 that it would increase pay by 5% for the 14,500 staff working at its stores across the UK (Sky News, 2021). The 7Ps of the marketing mix can act as a well-structured checklist for marketers who aim to create an effective strategy that achieves their goals and evolves the business to the fullest extent. Promotions in the marketing mix of Costa coffee promotions are almost absent in the case of Costa coffee. Product It goes without saying that the service or product you're selling should be at the centre of every element of the marketing mix. The business of Costa Coffee is operating more than 2121 outlets globally. In Donnelly, J. H. and George, W. R. (Eds). The operation of wholesale services in the form of catering became popular in London in the business of Costa Coffee. This is a detailed assessment of the marketing mix of Costa Coffee (7Ps of Costa Coffee). Costa Coffee should consider pursuing more international market expansions which should help it increase its revenue. In the context product mix it is not necessary that the product will be only the tangible product but the marketing mix concept also allowed the product could be the intangible also.

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