We will continue to develop our product, our coffee, our food, our store environment: The Costa Way- Brewing Strategy of UK Coffee Shop Market Assignment, IU, Ireland

Case Study

“We will continue to develop our product, our coffee, our food, our store environment, just completely focus on the customer to deliver a better experience

The year 1971 was marked in UK’s history when Costa coffee was introduced. Seven years from there the first coffee shop was opened in London. And in the next four decades, Costa had added many laurels to its brand. Costa had stepped and made its successful presence in more than 29 countries.3 One of the success strategies that were used by the company was rendering to “multi-channel strategy”.

After their take over by Whitbread PLC (Whitbread)’ success became the major motto for Costa. s The brand made into the hearts of the people by introducing the Costa Foundation.6 The funds gained by the Costa foundation were used for the development of Coffee growing communities not only in the UK but around the world. By their slow and steady development, Costa surpassed Starbucks7 which was the marker dominator in the UK in the 2000s. 8 The UK coffee shop market had realized a growth sprout in the past few years ending up with 16,501 outlets all around the nation, The increased popularity of the café culture, the coffee consumption had accomplished a growth rate of 7 to 8 limes that of the British economy.1° The year 2012, marked the increase in the coffee shop market by 7.5% and attained a turnover of £6.2 billion11.12 And hence in the UK troubling economy the coffee shop market has excelled to the core.

In order to render a permanent market share, the competition between the brands had increased tremendously. Moreover to stay in the market and have a customer base the coffee brands have to be very keen on their marketing strategies. These strategies should be on par with the customer’s flow of thought as most of the consumers have become savvy and picky consumers. Coffee had become part of the British lifestyle and in the year 2012 one out of five people consume coffee. From the context of coffee consumption, it had stepped into the arena of daily beverage and most of the adult population prefers coffee in the UK. With more than 1500 outlets and around 150 on their way, Costa Coffee had been considered as one of the favorite coffee brands in Britain.

In order to gain, a cutting edge in the coffee shop market Costa coffee had introduced new retail formats that would attract consumers. Along with the tough competition from the branded counterparts, Costa also had to compete with non —specialist operators like Monocle. This case study analyses the coffee shop market in the UK and the various strategies that Costa Coffee would use to maintain its space in the UK Coffee Shop Market.