Starbucks Vs Costa Edited 
Coffee Industry in the UK: Comparison of the Marketing
Strategies of Starbucks and Costa by Ahmed Fayih G ALOTAIBI
Table of Contents
1.0 Introduction 3
1.1 Aims & Objectives 3
2.0 Literature Review 4
2.1 SWOT Analysis 4
2.1.1 Strength 4
2.1.2 Weaknesses 4
2.1.3 Opportunities 5
2.1.4 Threats 5
2.2 4 P’s of Marketing 5
2.2.1 Product 5
2.2.2 Price 5
2.2.3 Promotion 5
2.2.4 Place 5
3.0 Research Question 6
4.0 Bibliography 6
Websites 7
1.0 Introduction
Costa and Starbucks represent two prominent brands in UK coffee market. UK consumers are embracing the growing coffee culture and show their love of coffee, enabling the sector to outperform the wider retail market, which in contrast, has grown at a slower pace of 1 – 2 % during 4-5 years (hospitality and catering news, 2013). Part of this consumer segment is targeted by Costa with its increased number of restaurants across the UK and part of it is targeted by Starbucks across the UK on the basis of quality provision of products and services through its restaurants which although are lesser in number than Costa but still are performing better in terms of revenue generation. This is discussed further below in the literature review section.
Besides, Costa is focusing on targeting the market on the basis of speedy provision of services. In this regard it acquired Coffee Nation and established kiosks whereby customers were given services on a speedy basis. Starbucks on the other hand established itself as a standard oriented brand where quality overtakes the speed. Starbucks tend to appear as better despite being lesser in number. Thus even though both the brands are providing more or less same type of services and menus of both the brands are similar as well, their marketing strategies distinguish them from one another and the way they are targeting customers.
Therefore, this paper proposes research into the efficacy of the marketing strategies adopted by Starbucks as compared to that
Strategies of Starbucks and Costa by Ahmed Fayih G ALOTAIBI
Table of Contents
1.0 Introduction 3
1.1 Aims & Objectives 3
2.0 Literature Review 4
2.1 SWOT Analysis 4
2.1.1 Strength 4
2.1.2 Weaknesses 4
2.1.3 Opportunities 5
2.1.4 Threats 5
2.2 4 P’s of Marketing 5
2.2.1 Product 5
2.2.2 Price 5
2.2.3 Promotion 5
2.2.4 Place 5
3.0 Research Question 6
4.0 Bibliography 6
Websites 7
1.0 Introduction
Costa and Starbucks represent two prominent brands in UK coffee market. UK consumers are embracing the growing coffee culture and show their love of coffee, enabling the sector to outperform the wider retail market, which in contrast, has grown at a slower pace of 1 – 2 % during 4-5 years (hospitality and catering news, 2013). Part of this consumer segment is targeted by Costa with its increased number of restaurants across the UK and part of it is targeted by Starbucks across the UK on the basis of quality provision of products and services through its restaurants which although are lesser in number than Costa but still are performing better in terms of revenue generation. This is discussed further below in the literature review section.
Besides, Costa is focusing on targeting the market on the basis of speedy provision of services. In this regard it acquired Coffee Nation and established kiosks whereby customers were given services on a speedy basis. Starbucks on the other hand established itself as a standard oriented brand where quality overtakes the speed. Starbucks tend to appear as better despite being lesser in number. Thus even though both the brands are providing more or less same type of services and menus of both the brands are similar as well, their marketing strategies distinguish them from one another and the way they are targeting customers.
Therefore, this paper proposes research into the efficacy of the marketing strategies adopted by Starbucks as compared to that
Bibliography: Austin, Christina (2011): The Billionaire’s Club: Only 36 companies have $1000 million-plus Ad Budgets. Available at: http://www.businessinsider.com/the-35-companies-that-spent-1-billion-on-ads-in-2011-2012-11?op=1 Blatchford, J Cowan, Brian William (2005): The Social Life of Coffee: The Emergence of British Coffee House. New Heaven: Yale University Press Euromonitor (2009): Local Company profile, Marks & Spencer Plc – Clothing and footwear, September 2009 Needham, Dave (1996). Business for Higher Awards. Oxford, England: Heinemann. Scott, Richards (1968): Marketing and Its Environment. Wadsworth Pub. Co, Belmont, CA The New York Times (1999): McDonald’s Corp Wheelen & Hunger (1995): Strategic Management and Business Policy (5th Ed). Addison Wesley, Reading, MA Websites