Starbucks vs Costa Coffee

J PRACHANTASEN 1220718 UOB

HISTORY:STARBUCKS

HISTORY:STARBUCKS

HISTORY:COSTA COFFEE

Name Outlets Mkt share Costa Coffee 1,342 40.4% Starbucks 743 30.7% Caffè Nero 490 14.0% AMT Coffee 65 1.7% Caffè Ritazza 55 1.4% Café Thorntons 37 0.9% Esquires 35 0.8% Coffee Republic 29 0.6%

The total of branded coffee shops soared from 748 in 1999 to 5,246 by Dec 2012. There were 4,831 non-specialist outlets at Dec 2012, up from only 522 in 1999. But in 1999 there were already 4,100 independents, up to 5633 by Dec 2012.

0

20

40

60

80 Expensive

High quality

Inexpensive

Low quality

starbuck

costa

Competition

•Strength

•Famous brand which is associated with

high quality

•People like Starbucks atmosphere

•Starbucks has many outlets and often is in

high class locations

•Well trained and treated employees

•Weakness:

•High price products

•Coffee quality is not as good as reputation

•Aggressive expansion

•Unhealthy products

•Opportunities:

•Launching new products/product extension

(e.g. tea, healthy, premium, co-branding)

•Capturing new markets (retailing) and new

consumer groups

•Selling more wholecoffee beans and

equipment

•Develop in non high street areas

•Threats:

•Growing competition within the Coffee

Outlet industry and new competition from

Fast Food restaurants

•Lack of ownership of coffee farms

•Global crisis/financial resources

Starbuck

•Strengths:

•has products that boast of a very powerful

retail.

•a reputation for value of money,

convenience and a wide variety of products

•has grown significantly over the years, and

has experienced global expansion.

•Weaknesses:

•a weak control of its empire, despite its IT

advantages.

•operates globally, but its presence is located

in only relatively few countries worldwide.

•lack the flexibility

•Opportunities:

•Taking over, merging, or forming strategic

alliances with other coffee companies

•expanding various consumer markets, such as

those in China and India.

•diversification of the company’s branches

from large super centers to local-based sites.

•continuously expanding

•Threats:

•is the target of competition, the company to

beat

•might be exposed to political problems in the

countries where the company has operations

•Intense price competition

•The latest developments in information

technology which could possibly change the

markets

Costa coffee

Segmentation

Segmentation

Marketing MIX 1. Product

Marketing MIX 2. Price

Marketing MIX 3. Place

Marketing MIX 4. Promotion

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