An Analysis of Coste Coffees Marketing Marketing Essay
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2/28/2015
An Analysis Of Coste Coffees Marketing Marketing Essay
An Analysis Of Coste Coffees Marketing Marketing Essay
2. Analyse the Company case’s Marketing; and then reflect on how it compares to the marketing of one of the Company’s Competitors (50% marks): In the first part of the essay, I am going to use market segmentation, targeting and positioning to analyse Costa coffee’s marketing. In the light of the global recession in 2008, the competition within the coffee industry has become fiercer than before, Costa Coffee financial reports looked very promising with rising growth whilst Starbucks experienced hard times. (Café Business 2009) Different marketing strategy of the two companies would be reflected later in this essay. Segmentation Demographic segmentation divides markets into segments by population characteristics. Three main demographic factors that Costa Coffee used are age group, social class, and professional level. By dividing the potential customers into age groups, Costa Coffee can adjust the flavour and choices of coffee accordingly. For instance, teenagers might 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 more caffeine since caffeine acts as stimulant and keeps them alert at work. (Ferrell & Hartline 2008, pp.172-173) From social variables, Costa Coffee can know more about what products customers are looking for. This is due 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 on coffee than the middle class each month. In this way, Costa 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...
An Analysis Of Coste Coffees Marketing Marketing Essay
An Analysis Of Coste Coffees Marketing Marketing Essay
2. Analyse the Company case’s Marketing; and then reflect on how it compares to the marketing of one of the Company’s Competitors (50% marks): In the first part of the essay, I am going to use market segmentation, targeting and positioning to analyse Costa coffee’s marketing. In the light of the global recession in 2008, the competition within the coffee industry has become fiercer than before, Costa Coffee financial reports looked very promising with rising growth whilst Starbucks experienced hard times. (Café Business 2009) Different marketing strategy of the two companies would be reflected later in this essay. Segmentation Demographic segmentation divides markets into segments by population characteristics. Three main demographic factors that Costa Coffee used are age group, social class, and professional level. By dividing the potential customers into age groups, Costa Coffee can adjust the flavour and choices of coffee accordingly. For instance, teenagers might 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 more caffeine since caffeine acts as stimulant and keeps them alert at work. (Ferrell & Hartline 2008, pp.172-173) From social variables, Costa Coffee can know more about what products customers are looking for. This is due 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 on coffee than the middle class each month. In this way, Costa 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...