Market Analysis: Costa Coffee

Also there were large restaurants trying to find ways to capitalize on the specialty coffee industry i.e.: Macdonalds, Krisspy, Dunkin, Donuts …..

There are different types of competition in the market for coffee. There are usually a multitude of coffee shops of different types and ownerships to supply for the highly concentrated demand. The most

The growth of the coffee industry is expected to keep growing even become larger in the near future. Without new innovation the industry would never grow. There have been some tiny and some large changes in the coffee world that in toll add up to a new experience that many cannot refuse to be a part of. One of the goals of many coffee shops is to make the customer comfortable and happy. To do this many Starbucks’ around the world have installed new wireless charging stations in there stores so that when costumers are there they can easily charge their phones without worrying about bringing a charger of their own. This new addition to the stores is just one part of getting ready for the future. Phones and technology in general is a huge part of everyday life and this has to be incorporated into many places people shop. By adding technology to stores it makes the entire buying process more streamline. Starbucks has also integrated the use of phones in to the payment system at every store. Customers use their own phone that has a barcode to pay for their goods. With just the touch of a button the entire buying process can be completed. This makes it easy because you do not need to worry about remembering your wallet all you need is your phone and many people already have it with them. Included in the app is also a rewards system that provides user with rewards bases on how often they go and even recommendations for what a customer may enjoy next time. One of the newest changes

A commodity is a raw material or primary agricultural product that can be bought and sold. The market treats it as equipment or nearly so with no regard to who produced it. The original producer does not make the “big” money from the good that has become a commodity demanded by consumers. A commodity’s supply and demand is part of one universal market like corn, or wheat. A stereo is something that would not be considered a commodity. Other things are important about a stereo not that it is just a stereo but what brand and quality is in consideration when purchasing a stereo. Demand for one type might be much larger than the demand for another. This is not the case with commodities; they lose differentiation across their supply base. An

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.

Starbucks Corporation, generally known, as Starbucks Coffee is the leading retailer and a brand of world’s forte coffee in the world, with more than 15,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim, wherever in this world where premium quality coffee is in demand. Starbucks is the largest coffeehouse company in the world ahead of UK rival Costa Coffee, with 20737 stores in 63 countries and territories, including 11910 in the United States, 1496 in China, 1442 in Canada, 1052 in Japan and 772 in the United Kingdom. The first Starbucks was open in 1970. The name was inspired from Herman Melville’s Moby Dick, a definitive American novel regarding the 19th century whaling industry. The nautical name matches seamlessly for a store that imports the world’s finest coffees to the cold thirsty people of Seattle. In May 1998, Starbucks have finally successfully entered the European market through its acquirement of 65 Coffee Company stores initially originated from Seattle in the UK. Both companies shared a common culture, focusing on a great commitment to customized coffee, similar company values and a mutual respect.

It’s a known fact that Starbucks is one of the leading brand in the market.When we analyse the market we find that Mcdonald 's and Dunkin are the competitors in the same product segment. So comparing Starbucks with these competitors will throw light on its grey areas, process and competitive edge in the market.

In the UK, the three leading competitive coffee brands are Costa Coffee (with 1,992 outlets), Starbucks Coffee Company (with 849 outlets) and Caffè Nero (with 620 outlets). They enjoy a 3-firm concentration of 53%; (Market concentration measures the market share of the largest companies in an industry)

Moreover, most of the people know the brand Starbucks as the leader of the coffee industry. It is enormously successful and it comes out with no surprise that this will be used as benchmarking against the study of Dunkin’ Donuts.

Statistics show that over half of the American population consumes coffee on a daily basis. You may drink coffee hot, cold, mixed, or even in a frappuccino. Individuals are able to make coffee at home, or buy it on the go. Coffee provides people with caffeine, which ultimately gives energy for hardworking people all around the world. The main focus for this paper will cover the following topics, with coffee as the basis: causes for shifts in supply and demand, how coffee supply and demand influence price, quantity,

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?

However, data from the market research team has shown that there is a shift on Starbucks’ brand recognition in customers’

The demand for coffee shops is born from the increased number of individuals seeking coffee brewed outside of the home. This creates a larger market for coffee shops. An increased amount of people are starting their mornings off by purchasing breakfast and a cup of coffee away from home (Tuttle 2014), more people are enjoying gourmet coffee (NCA National Coffee Drinking Trends 2015 Infographic), and younger generations are demanding more coffee and coffee drinks from coffee shops (Tuttle 2014, S&D Coffee and Tea inc. 2014, Statista 2015). Coffee shops must compete with at home coffee, work place coffee, and teas for the caffeinated beverage markets (LN 2015). Demand for coffee within different markets varies, and provides competition for coffee shops. Single cup coffee makers, increasingly qualitative instant coffees, and gourmet beans are all sources of competition that could satisfy the demand for coffee. However, coffee shops are becoming more ingrained in social

When Starbucks started their target market were people who enjoyed coffee not just for an energy boost from the caffeine, but people who enjoyed sitting down and drinking a well-prepared cup. Upon visiting Italy and falling in love with the coffee bars and the experience that they offered, Schultz envisioned a place between your home and work where you could sit and enjoy your coffee. Starbucks wanted to control their coffee from “raw green beans to the steaming cup” this meant that they had to talk with their farmers to make sure the quality was up to their standards. They were getting coffee from different places around the world that had different characteristics that would attract the type of coffee drinkers they wanted and tasted good. When preparing the coffee they first would ground the roasted beans, this was one of the ways that they attracted people to drink their coffee because it was freshly grounded before brewing. They used manual coffee pots to brew their coffee, which is more time-consuming but showed how dedicated they were with the quality of their product unlike other big companies. Starbucks was priced as a premium cup of coffee compared to other coffee shops, because of the steps they took to make a high-quality cup of Joe from start to finish. They put a lot of time and effort making sure that the atmosphere of

Many coffee companies are currently in the market, making competition fierce. Although Starbucks has a strong reputation in North America, direct and indirect competitors still pose a threat. To establish market niche, competitors use location,