An Analysis Of Coste Coffees Marketing Marketing Essay

An Analysis Of Coste deep browns selling Marketing Essay2. Analyse the Company cases Marketing and then reflect on how it compargons to the merc pass byising of one of the Companys Competitors (50% marks)In the first part of the essay, I am going to use market sectionalisation, designateing and positioning to analyse costa burnt umbers merchandise. In the light of the global recession in 2008, the competition within the drinking chocolate industry has become fiercer than before, rib Coffee financial reports looking ated very hopeful with rising growth whilst Starbucks experienced hard times. (Caf Business 2009) Different marketing outline of the two companies would be reflected later in this essay.Segmentationdemographic segmentation divides markets into segments by population characteristics. Three main demographic factors that costa Coffee used are age group, social class, and professional take aim. By dividing the potential customers into age groups, rib Coffee git a djust the disembodied spirit and choices of coffee accordingly. For instance, teenagers index prefer hot chocolate rather than espresso, as they normally have a preference of sweet-tasting beverages. On the other hand, adults might prefer drinks with much caffeine since caffeine acts as stimulant and keeps them sprightly at work. (Ferrell Hartline 2008, pp.172-173)From social variables, costa Coffee slew know much nigh what products customers are looking for. This is repayable to the fact that they suggest the customers level of income which in turn affects their ability to buy. For example, the privileged class would spend more than on coffee than the middle class each month. In this way, rib Coffee can adjust the prices accordingly (Dibb, Simkin, Pride Ferrell 2006, pp. 229-232)Behavioural segmentation is by far the most important type of consumer segmentation due to the fact that it is more closely related to consumer need. (Ferrell Hartline 2008, p.172) Costa Coffee can segment the market based on peoples different coffee preferences. check to the Costa Coffees marketing director, Jim Slater, he found out that there are people who find latte too weak and cappuccinos too frothy, and do not want the beefed-up flavour of an espresso or black Americano. (Reynolds 2010, p.2) Furthermore, Costa Coffee has identified what made the customers buy the coffee, some might look for a place to relax and others might want to grab and go. In this way, Costa Coffee can try to satisfy the customers needs (e.g. by improving the interior design of the shop) (Whitbread 2010, p.14)TargetingOnce identified the segments, the firm can starts the targeting process. Costa Coffee caters for all the segments and does not use the concentrated strategy (i.e. concentrating on just one segment) as it is too risky. It uses differentiated strategy, development different market mix for different segments. (Bradley 2005, pp. 30, 208)Launching Flat lily-white in January 2010 w as no doubt a way for Costa Coffee to target their customers who are looking for coffee other than latte and espresso. In just one month, flat white has already accounted for 7.5% of the sales. (Reynolds 2010, p.2)When dividing its market into segments, Costa Coffee believes that targeting the upper classes would be most profitable. The brand name symbolises curvaceous and excellence, thus these classes are willing to pay more for a shape of coffee. (Whitbread 2010, p.15)PositioningIn terms of positioning, Costa Coffee launched its first TV advertising campaign in order to position the product in customers minds and give them an image of the company. The advert was about monkeys playing with the coffee machines and attempting to induce the perfect coffee. (Reynolds 2010, p.3) The advert ended with a Costa barista try to hand make a perfect cup of coffee, showing that it can hardly be created by barista who are highly skilled and passionate about coffee. The message hobo the TV advertisement was to prove the supremacy of Costa Coffees products. According to Reynolds (2010), Costa Coffee is going to express the idea that it is trying to save everyone from the normal coffee into the TV advert.ReflectUnlike Costa Coffee, what Starbucks trying to sell is not only coffee, but also the Starbucks experience. Starbucks believes creating a cosy, relaxing atmosphere would be a key driver of success. To galore(postnominal) customers, coffee is a treat after a stressful day. It targets peculiarly at young adults, who look for places to unwind. (Michelli 2007, pp.49-51) According to the Mintel report on coffee in February 2010, the 16-34 year old age group are more likely to make their own coffee at home (Mintel foreign Group Limited, 2010). Starbucks coffee has successfully launched an online store, so that the customers would be able to get coffee beans online. (Gia 2009, pp.10-11)Both Costa Coffee and Starbucks monitor their coffee tonus standard carefully des pite Starbucks main focus is on the Starbucks experience. Starbucks do that by researching constantly and developing new technologies in order to ameliorate the roasting processes and thus the quality of coffee. (Michelli 2007, pp 58-64) Costa Coffee adopted a similar strategy and also widened the range of product sold. Moreover, both of the companies target their customers in a similar way. They both launch coffee rescript cards, which enable them to track their customers consumption pattern and thus improve their strategy on targeting their customers. However, after recession, it is evident that Costa Coffee did well than Starbucks. approximately experts believe that Starbucks decision to align with McDonalds was the one to be blamed. The reason behind is that McDonalds offer low quality coffee which in turns adversely bear upon the Starbucks experience that Starbucks has been trying to established. (Caf Business, 2009)To sum up,Reflect means digest, mull over, appreciate alo ud about the key marketingfeatures of the company case with the marketing of a key competitor. E.g.with MS we could have compared it with Next, or george at Asda .You could drop your reflection by asking questions or perhaps review howstrong relatively the 2 companies brands are, for example.http//books.google.com.hk/books?id=beBNXXZbEEoCpg=PA170dq=starbucks,+segmentationhl=enei=JjokTaXpFIemcMeW-H8sa=Xoi=book_resultct=resultresnum=2ved=0CCsQ6AEwAQv=onepageq=starbucks%2C%20segmentationf=falsehttp//books.google.com.hk/books?id=QDaax4mFMpcCpg=PA28dq=starbucks,+segmentationhl=enei=JjokTaXpFIemcMeW-H8sa=Xoi=book_resultct=resultresnum=1ved=0CCYQ6AEwAAv=onepageq=starbucks%2C%20segmentationf=falsehttp//www.independent.co.uk/ news show/uk/this-britain/coffee-chains-turnover-set-to-double-582227.htmlhttp//www.google.com.hk/search?tbs=bks%3A1tbo=1hl=enq=starbucks+segmentationhttp//www.economicshelp.org/blog/economics/is-the-price-of-a-starbucks-a-rip-off/