Comparing Costa and Starbucks

Comparing Costa and StarbucksOne of the biggest and fastest growing industries today is the burnt umber industry. This industry basically includes item-by-item cafes, hotel cafes and retail chains. In this study, we shall be focusing on the Retail Chains that belongs to the organized sector. The retail forbiddenlets share a particular brand and contract sympathetic kind of man agement, with standardized business procedures and practices. The major players today covering foodstuff share all over the world are Starbucks java, Barista Coffee, Caf Coffee Day, Costa Coffee, and so forthFor this study, the two retailers Starbucks Coffee and Costa Coffee are chosen because of their identical pattern of functioning and growth. They are the two major players in the deep brown caf industry, and their customers subscribe them both as interchangeable brands. That is why it is important to study how these brands divergentiate themselves from each other, and attempt to improve brand loy alty amongst the customers.Objectives of the StudyBy conducting a comparative study of Starbucks Coffee and Costa Coffee, we shall study why one retailer is more successful than the other, and how the executing of these retailers can be improved. Studying the characteristics, history, performance and marketing strategies adopted by both the companies, and the customers perception more or less the two is the centre point of this research. The objectives of the study can be summarized as belowTo par and study the 4Ps, namely Product, toll, Promotion and Place, of Starbucks Coffee and Costa Coffee.To understand how these cafs have po seationed them in order to differentiate them in the market.To find out the customers perceptions and preferences about both these cafes and what motivates the customer to visit these coffee houses.To identify the areas where both organizations are performing well and areas where they need to improve.Research MethodologyThe methodology for the research includes disciplineCollection of DataFindingsRecommendationsFormulation of QuestionnaireClassification AnalysisCollecting primary data from the customers visiting Starbucks Coffee and Costa Coffee and the personnel of the organization through observations, filling up of questionnaires as well as interviewing them. The sample size is very small, i.e. only 5 customers, each belonging to a different age group and cover chargeground.Collecting relevant secondary data from various sources like magazines, books, journals, internet, and gilds website.The data so self-contained shall be classified, tabulated and analyzed through graphs and pie charts to extract findings from the collected data. Based on the relevant secondary and primary data, a comparative analysis will be done so as to find out the areas of excellence and areas needing improvement.In the light of these findings, critical aspects shall be evaluated and recommendations and suggestions will be provided for the overall improvement of the Starbucks Coffee Company. clear-sighted Starbucks Coffee CompanyStarbucks Coffee Company (Starbucks), one of the worlds premier roasters and retailers of specialty coffee, has travelled a journey beginning from blusteringing just a narrow, single store in Seattles historic state highway Place Market in 1979, to more than 17,000 stores in 50 countries today.Starbucks offers one of the finest and fresh-roasted coffee beans in the world. The coffee buyers of the company personally travel to the coffee far-offms in Latin America, Africa and Asia to select the best quality Arabica beans, which is roasted into a blend exclusively for Starbucks by the Starbucks experts, who bring out the rich flavor of the beans.Mission recitalTo inspire and nurture the human spirit one person, one cup and one neighborhood at a time.Starbucks ProductsStarbucks offers a variety of products, ranging from hot frigidness beverages to eatables like sandwiches, salads, wraps, ice cream s, etc. Keeping in mind the health and wellness of its customers, it has a separate menu for low-calorie food and beverages, along with its nutritional data. Knowing that some of its customers may be allergic to certain ingredients, the company offers products under Food Allergens section, specifying the food and beverages which do not contain the ingredient the customer is allergic to. The products are well designed, and are served in different measures, not on the basis of quantity, but according to the value for money. They besides provide bottled drinks, which can be refrigerated and used at home later on. Moreover, there is a separate menu for kids keeping in mind their taste and health.Starbucks PriceStarbucks has a skim pricing policy. They began with a higher price, and skimmed the cream of the market. With the growth in the number of outlets, came the benefits of economies of scale. Because of this, they have been able to gradually lower their prices, and appeal to diffe rent segments of their target market. The main factors that affect their pricing are their cost of goods sold, which is quite high because imports form a majority of its products.Starbucks PlaceStarbucks cater to their target market with strategically located outlets at main markets, malls, and family entertainment centers. The stores are considered to be having a warm and welcoming ambience whether for meeting friends and family, or enjoying time alone. thither are around 8870 company owned stores and 8139 licensed stores.Starbucks PromotionStarbucks carries out mass promotion campaigns, mainly in the form of promotions on the Print, TV and intercommunicate Medias. At present, they do not rely heavily on advertising, but rely more on sponsorships and strategic alliances with other corporations. It also takes part in various sales promotion activities to help increase sales at their outlets, some of which are Sponsorships, Collaborations, Tie-ups, Starbucks Membership Card, etc.S tarbucks PeopleThe people at the stores have to undergo a training procedure so that they have an in-depth knowledge of the companys products and are able to provide best customer service. All employees are interact as partners and provided with comprehensive health coverage and stock in the company through the Bean Stock platform to inculcate a sense of possession and motivate them to perform their best.Starbucks ProcessThe order and delivery process at Starbucks is based on self- service, where a customer goes up to the counter to place the order, and goes back to the counter to pick the delivery once it is prepared. The company believes that although it is just a moment, in which one hand reaching over the counter to present a cup to another outstretched hand, but it establishes a connection between the company and its customers. (Starbucks Coffee, n.d.)Knowing Costa CoffeeCosta coffee was introduced in 1971 at 9 Newport Street, London, by Sergio and Bruno Costa. Worlds best Arabica and Robusta beans, sourced from Central and South America, Africa and the Far East, are blended to create a unique taste and aroma from its own blend company (Mocha Italia). Costa was the first UK-based coffee retail chain which operates the entire coffee making process from sourcing, blending, roasting, grinding and making coffee.Costa Coffee Products wish well many other brands, Costa Coffee also offers a wide range of products in its retail outlets which includes hot chocolate, teas and infusions, iced coffees frescato. The USP of the company is its customized products without any extra charge. It prepares its coffee according to the exact requirement of the customer, where the customer can state its preference in terms of caffeinated or decaffeinated coffee skimmed, full fat or soja milk variety of syrups flavors of vanilla, hazelnut or caramel, etc. Moreover, the store provides a nutritional content chart and lists of allergens in their food and drinks for its heal th-conscious customers.Costa Coffee PriceThe pricing policy of Costa Coffees is not to touch the upper cream of the society, but to penetrate the market. Hence, price of its products is lower than that of Starbucks.Costa Coffee PlaceThe spatial relation of Costa Coffee outlets is in the areas where there is maximum youth movement. It is found generally near colleges, shopping malls, petrol pumps, and areas which are easily visible and approachable. It is also located at all 57 Moto motorway services around UK. This shows the accessibility and availability of the Coffee Caf Day outlets for drive in customers.Costa Coffee PromotionCosta Coffee does not believe much in mass media promotions. But like other brands, it also has Costa Coffee floorshow Card. Its promotion techniques are unique. For e.g. it offers points when a customer goes to a Moto motorway services.Costa Coffee PeopleThe people at Costa Coffee are characteristically trained to be pleasant, polite and positive wit h the customers. They ensure that the customers have a memorable visit.Costa Coffee ProcessThe order and delivery process at Costa is not based on self- service. The staff member fetches the order to the table of the customer. (Costa Coffee, n.d.)Findings and RecommendationsStarbucks has an extremely strong brand image but they need to escape hard on improving their quality of product as taste plays a major role in coffee industry.Starbucks should prepare its communication program in such a way that it changes customers perception and makes it an affordable brand.A majority of Costa outlets are located in the posh areas. Starbucks must open some outlets near residential areas in order to increase its market coverage.Starbucks should consider a change in its delivery process. It must shift to a more convenient format where a caf attendant delivers the product to the table. This change may seem insignificant but it also improves customer satisfaction.ConclusionOur look into made us reach the conclusion that both, Costa Coffee and Starbucks Coffee, enjoys equal customer preference. Although price and promotional schemes influence the decision of the people, but the taste of coffee is a very important factor in deciding the store to visit. Costa coffee has a unique taste which attracts the customers. Moreover, people love to sit in the excellent ambience provided by Costa coffee. The visitors in Starbucks outlets are basically executives and elite class, whereas Costa Coffee is preferred by youth. As far the prices were concerned, our research led us to the conclusion that the Costa Coffee offered low prices as compared to Starbucks Coffee and Starbucks can invite more crowd if they reduce their prices, along with providing offers.BibliographyCoffee Market. (n.d.). Retrieved May 4, 2011, from http//www.maketradefair.com/assets/english/CoffeeMarket.pdfCosta Coffee. (n.d.). Retrieved May 4, 2011, from http//www.costa.co.uk/Starbucks Coffee. (n.d.). Retrieved May 4, 2011, from http//www.starbucks.com/