STARBUCKS SWOT

Article written by Judy Garber

COSTA COFFEE MARKETING MIX

PRODUCT:

Their brand name "COSTA COFFEE" is their signature. It means luxury, excellence and perfection all over the world.

The company wants to serve the unique and best coffee in a true italian style.

In order to become the leader in this market, Costa Coffee has developed  a wide range of products.

Core products:
- Coffees and other hot beverages ( hot chocolat, mocha, speciality drinks, teas)
- Costa ice ( cold coffees)

Complementary products:
- Sandwiches
- Breakfast 
- Wraps and salad
- Pastries and cakes
- Costa at home ( coffee for home)

The name of the products calls the italian excellence of coffee. The company wants to reinforce its positioning ( not only high quality coffee in the italian style but also good services and coffee shops atmosphere) by italian name.

Besides, the brand develop different tastes and type of product to answer to the different customer's needs and expectations ( hot and cold drinks, seasonal beverages, choice of the drink according to the moment of the day, complementary products...)

Costa emphasizes the fact that all products are made by selected and excellent quality ingredients.
Only 1% of world production of coffee correspond to the Costa Coffee criteria.
The brans selects the best coffee beans of the world to create a gourmet  selection of product offer.
Otherwise, 100% of the coffees offered bu the brand are based from the sustainable production plants.

COFFEES

"Hand-Making a cup of coffee is an art"

HOT CHOCOLATS

"Keeping it sweet"

SPECIALITY DRINKS

"How about something little bit different?"

TEAS AND INFUSIONS

"Brewing the perfect cupa"

COLD DRINKS

Stay cool with a refreshing hit of summer"

FOOD

"Quality food where you find quality coffee"

COSTA COFFE HOME

"Experience the magic of Costa in the comfort of your home"

PRICE

- The price is not the priority for Costa Coffee
- The main focus of the Brand is the quality of products and services.
- So high price of Cosa Coffee is explained by the excellent quality and unique taste of products and services

PLACE

Network location
- The largest British chain in term of stores (more than 1100 coffee shops in UK)
- Costa Coffee shops are essentially located in big developed cities (selection based on the size of the population, level of retail activity of the town, level of income, the socio-economic growth...)
- Highly frequented place (proximity to transpor facilities)
- Main places : airport, railway station, cinemas, hospitals, Tesco store

Basic Costa Coffee shop:
- Warm tones, relaxing colors
- Design and comfort furnitures
==> Luxury places, relax environment where people can interact between them
==> People can enjoy a pleasant time with an handmade coffee with an unique taste.

PROMOTION

- Costa Coffee uses good communication tools that convey its good brand image (TV and press advertising, street marketing, digital strategy..)
- But the main communication is made by the word of mouth.

Article written by Judy garber

STARBUCKS MARKETING MIX

POSITIONING

==> Innovative products of the coffee industry and provide excellent service : Starbucks wants to satisfy its consumer and create a long terme relationship.
- Premium products
- very high control of quality (each steps od coffee production)
- High quality and personalized service
- Adapted environment
- "THE THIRD PLACE" : people can feel relax and interact with others : the place between home and work.

PRODUCT

Starbucks developed a very large product range in order to match the several needs:
- Numerous taste and kind of products
- Several benefits => light product, fresh beverage for summer, seasonal offers, without cafe.

Core products:
- Coffee beans
- Hot and cold coffees and related beverages (tea, juice, smoothie, hot and cold chocolate...)

Others Products :

- Equipment and coffees-related accessories

- Snacks : healthy organic sandwiches, salads, and pastry and cakes, fresh desserts and yoghurts

- Seasonal offering : christmas flavor and products for example

Services:
- Music
- Sales of equipment
- Wifi

WAY OF SELLING:
- Trained staff
- Coffee cup and coffee taste choice by the consumer
- Higher product variety and quality

PRICE

- Price and quality determines the value of Starbucks products => Starbucks wants to show that the price supported its positioning ( efficient training staff, atmosphere, services, quality products...)

- Range from $1.00 tp $5.00 

- 2010 => Announcement of an increasing of price due to the increasing price of coffee beans.

PLACE

Network:
- Starbucks headquarter is located at 3475 Victory Blvd, Staten Island, New York.
- products available in  approximately 39,000 grocery and warehouse stores, (33,000  in US ans 5,000 international market)
- Channels : warehouse club, convenience stores, grocery stores
- Selected highly visible locations and opened stores




The typical Starbucks Shop:
- High quality ans well designed furnitures => Starbucks takes care about the consumer satisfaction by providing quality services, atmosphere, efficient staff with barista, customer experience...
- Free wifi to everybody
- Board with Starbucks suppliers and stories
- Outlets in high street areas and developed cities

PROMOTION

- Fair trade and "green coffee"

- Charity

- product placement

- Cross selling

- online or mobile coffee ordering for busy people

- new coffee evaluation

COSTA COFFEE COMMUNICATION STRATEGY

ADVERTISING

• TV

In 2010 => Costa put in place its 1st TV ads in order to promote the global quality of the brands.

In 2012 => Costa Coffee set the largest advertising campaign :

This campaign is broadcasted accross TV, press media, digital media, and in store.

==> http://www.youtube.com/watch?v=MYSmij0407A

Kevin Hydes, marketing director of Costa Retail said : 
"By putting Costa fans together with our barista, it playfully makes the point that they really are the stars. The campaign shows that only our barista put their heart into everything they do, and we hope our customers feel the love in every cup."

• Press media

Costa Coffee set up several print communication in order to promotion its values, new products, seasonal offer for example.
Where? in press magazines, street and underground stations.

Here, it was a communication in underground stations in June and July of 2013 to promote fresh drinks.

Kevin Kydes :"to educate consumers about the breadth of our iced drinks range and the difference between blended and over ice drinks"


Others

DIGITAL STRATEGY

• Facebook (+ Facebook app for loyalty)

Facebook page 

• More than 1 millions "likes"
• Continuously updated by the community management team
• Specific communication for events, holidays, festivities ( christmas, valentin's day....)

Facebook application

Costa extends its loyalty strategy with a Facebook application in which all Costa fans can check their account (3 millions of members Costa Coffee club).

Their can upload all their details and loyalty points.

This app offers customers to earn more loyalty points. By doing this, Costa Coffee wants to reward its fans for their loyalty.

• Twitter

- 69 212 subscribers
- As Starbucks, Costa Coffee tried to be omnipresent in the social network like Twitter but Costa Coffee put just descriptives informations.

• Tumblr

• Mobile application

In order to catch up with it late in the digital sphere, Costa Coffee developed  its 1st mobile application. The app is covering different uses :

- Store location

- Catalogue : informations about the costa products

- Little games

- Music

==>  In 2013, Costa Coffee became the 1st coffe shop chain te set up a mobile application in UAE region.

Article written by Judy Garber

STARBUCKS COMMUNICATION STRATEGY

Advertising strategy

Starbucks set up  a "non communication" strategy:
- No Tv spot and press advertising
- No display in street 
==> The company based all its strategy in the word-of-mouth and the public relations.
==> For specific events , and in majority in the United-States, we can see some Starbucks Ads :

http://www.youtube.com/watch?v=a2J8KJDsqqY

Digital strategy

Starbucks knows that the digital media represents the turning point in the actual society.

In order to attract young people ( 15-35 years old citizens) and to develop its reputation at the international, Starbucks organized a real digital strategy.

For Starbucks, the customer is the King, and we have the the center of the concerns.

 Starbucks wants to transform the digital experience of its customer in a UNIQUE moment!

In fact,  the company is applying a bilateral communication:

- To apply this strategy, a real team of community manager is dedicated to this activity.

- Suggesting , listening to the customer, and answering in a short term ( less than 34 minutes)

==> Consequently, it brings to Starbucks a human size.

• Starbucks Website : 

http://www.starbucks.fr/

- A  simple and interactif website
- A proximity with the customer : Starbucks tells us its history, evolution and news.

• Facebook

- More thant35 millions of fans
- 4th community behind Coca Cola, Redbull
==> Starbucks has a real commitment in the Facebook activity : exchange about the products and values

• Twitter

- More than 4 millions of fllowers
- Different accounts
- Humanization of the Twitter through 2coordinators of the brand  (the "Voices of the Starbucks) : Paige and Archana

• Pinterest

- Starbucks let the internet user create the content of the Pinterest account

• Youtube

http://www.youtube.com/user/Starbucks

- Starbucks uses its Youtube Account in order to put videos telling the history of the brands, actuality of products, values...

About the Starbucks history:
http://www.youtube.com/watch?v=vizOXrc8fso&feature=c4-overview-vl&list=PL02ACC75C731FA9EA

• Instagram

- About 1,7 millions of subscriber
- Customers can upload photos of themselves  with a Starbucks product.

• Flickr

- Starbucks is sponsoring a group on Flickr
- But the brand has a passive use of it 

• Foursquare

- Starbucks uses this website in order to reward its clients
- Example : clients put on the website  their location in a Starbucks Shop => then a lucky draw => the winners have been rewarded of a 40-dollars-gift-card.

• Mobile application

- Geolocalisation of Starbucks shops for clients
- Payment card with loyalty point