COFFEE MATE STUDY CASE

Any existing business can be a threat to Spot Café because of its time in service.

The owners came up with the idea for Mr. Coffee automatic coffeemaker in 1970 and their invention was an instant success. With sales of over one million units for the first 4 years, Mr. Coffee gained a market share of 10%. At this time the company was relying mainly on national TV commercials in

Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world with over 16,000 stores in 50 countries. This report evaluates major internal and external factors affecting Starbucks using various analytical techniques. Based on the Starbucks brand in UK, it identifies suitable marketing strategies for Starbucks to expand its business in the UK market within the next two years. In line with the chosen marketing strategies, recommendations for the marketing mix are discussed.

A marketing strategy provides a big picture of what a firm can do in a specific market. When creating a marketing strategy, a firm must identify a target market and a related marketing mix. A target market is "a group of similar customers to whom a firm wishes to appeal," and a marketing mix is "the controllable variables the company puts together to satisfy this target group." (Perrault and McCarthy 36) Focusing on specific target customers can help a firm develop a marketing mix that satisfies those customers ' specific needs better than another firm, making a firm less likely to face direct competitors.

Based on the research of Coffeeberry and situation analysis, the core customers are nearby residents and students from University of La Verne. Therefore, the volume of customers is roughly around 5000. Coffeeberry is located in old town La Verne, and right next to University of La Verne. The very basic reason why Coffeeberry pick up this location is because it is a downtown area and a lot of businesses are centered here, where people living nearby and students from the university hang out. The competitors, who also offer coffee products, including Circle K, Starbucks, McDonald’s and Miss Donut & Bagel, etc.

• Market Segmenting- is known for targeting potential customers that are the best matches for services and products. This type of tool is important to businesses because it involves finding the different needs that exist with consumers. For example, some consumers prefer a fast paced environment while others are concerned with the space.

Two important strategy concepts that need to be implemented for successful marketing within a business are market segmentation and a generic marketing strategy. Market segmentation is defined by Mullins & Walker, Jr. (2010), as the process by which a market is divided into distinct subsets of customers with similar needs and characteristics that lead them to respond in similar ways to a particular product offering and marketing program (p.180). Generic market strategy is based on three strategies, one of which applies dominantly more than the other two in a

Following the introduction of the new flavored coffee, there is need for coming up with a sales strategy for increasing the sales of the new product. The strategy gives details on how the product will reach the customers, and in the end, making them aware of the difference between the new product-line with the other products from the company. These strategies are necessary for improving the total company sales, consequently increasing the profitability of the company. The strategy is also necessary for the coming up with sales activities that position the flavored coffee to a state where it can gain a competitive advantage in the market. The most appropriate sales strategy of choice for meeting the sales objective of the company is the triple-tiered sales strategy (Frain, 2009).

Costa coffee founded in 1971 in London, UK. Now, it has become the biggest top coffee shop chain in UK. However, Costa should be prepared for danger in times of peace. In this report, some suggestions will be proposed to improve Costa coffee’s marketing mix over the next three years. We begin with a brief description of the data we collected, then go on to analyses coffee shop market environment in UK; the next section looks at Costa coffee’s current statement of marketing mix, and finally we give recommendation of the marketing mix in the next year for Costa Coffee. Section 1 Primary research method Primary data was collected in the form of questionnaire with 15 questions, which was posted on the Internet. Also,

Marketing methods aimed to make a solid base of loyal customers, furthermore as maximising the sales of high margin product, like coffee drinks.

segment without losing their share of the office coffee segment (OCS) and while maintaining their

Starbucks’ lead in the specialty coffee industry exemplifies the result of deftly executing a well-planned business strategy. Moreover, Starbucks is well positioned for what is expected to be a continuing rise in the popularity of specialty coffee products. The question before Starbucks’ leadership, however, is what avenues will lead to Starbucks’ goal of remaining true to its core, the highest quality coffee products while providing a “total coffee experience” for its customers?

Market Segmentation sole purpose is for a company to identify and target specific consumers to launch and brand

Niche marketing refers to the submarket where specific products are marketed. More specifically niche marketing refers to narrow market segment where products with special offering survives. Niche marketing basically works with a concept of `Big fish in small pond. ` By targeting a niche market, the marketer can serve in more specialized manner and can create a situation of monopoly. The market notices the difference in the value of services provided by a niche marketer and generates loyalty. Now the companies are realizing the power of niche marketing and

Market segmentation is the key strategic concept in marketing today (Michael N. Tuma, 2011). It is shows as the attempt to distinguish 'homogeneous groups of customers who can be targeted in the same manner because they have similar needs and preferences'. (Wedel & Kamakura, 2002). Good market segmentations helps in understanding the