Comparing Costa and Starbucks

Comparing rib and StarbucksOne of the biggest and fastest growing industries nowadays is the chocolate industry. This industry essentially includes individual cafes, hotel cafes and retail chains. In this reflect, we shall be focusing on the retail Chains that belongs to the organized sector. The retail come forthlets sh atomic number 18 a particular grass and aim similar kind of management, with standardized business procedures and practices. The major players today covering market sh atomic number 18 all over the world be Starbucks umber, Barista drinking chocolate, Caf Coffee Day, rib Coffee, and so onFor this study, the two retailers Starbucks Coffee and rib Coffee argon chosen because of their identical pattern of functioning and growth. They are the two major players in the coffee caf industry, and their customers consider them close to(prenominal) as convertible brands. That is why it is important to study how these brands differentiate themselves from for ea ch one other, and attempt to ameliorate brand loyalty amongst the customers.Objectives of the StudyBy conducting a comparative study of Starbucks Coffee and rib Coffee, we shall study why one retailer is much(prenominal) than successful than the other, and how the performance of these retailers can be improved. Studying the characteristics, history, performance and market strategies adopted by both the companies, and the customers perception about the two is the c at a timentrate on point of this research. The objectives of the study can be summarized as belowTo e part and study the 4Ps, namely Product, price, procession and mooring, of Starbucks Coffee and Costa Coffee.To understand how these cafs direct positioned 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 soundly an d areas where they need to improve.Research MethodologyThe methodology for the research includesSurveyCollection of DataFindingsRecommendationsFormulation of QuestionnaireClassification digestCollecting 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 background.Collecting pertinent secondary data from discordant sources like magazines, books, journals, internet, and callers website.The data so dispassionate shall be classified, tabulated and analyzed through graphs and pie charts to redundantct findings from the collected data. Based on the relevant secondary and primary data, a comparative analysis allow for be done so as to find out the areas of righteousness and areas needing improvement.In the light of these findings, critical as pects shall be evaluated and recommendations and suggestions will be provided for the boilersuit improvement of the Starbucks Coffee Company.Knowing Starbucks Coffee CompanyStarbucks Coffee Company (Starbucks), one of the worlds premier roasters and retailers of specialty coffee, has motivateled a journey root system from opening just a narrow, single store in Seattles historical Pike Place Market in 1979, to more than 17,000 stores in 50 countries today.Starbucks offers one of the finest and fresh- cook coffee beans in the world. The coffee buyers of the club personally travel to the coffee farms 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 prolific flavor of the beans.Mission StatementTo inspire and nurture the human expression one person, one cup and one neighborhood at a time.Starbucks ProductsStarbucks offers a variety of products, ranging from hot cold beverages to eatables like sandwiches, salads, wraps, ice thresh abouts, etc. Keeping in mind the health and wellness of its customers, it has a fall apart menu for low-calorie nourishment for thought and beverages, along with its nutritional data. Knowing that some of its customers whitethorn be allergic to certain ingredients, the order offers products under Food Allergens section, specifying the food and beverages which do non contain the ingredient the customer is allergic to. The products are well designed, and are served in different measures, not on the al-Qaida of quantity, but according to the value for money. They also 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 prove 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 ben efits of economies of scale. Because of this, they have been able to gradually commence their prices, and appeal to different segments of their target market. The briny 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 ambiance whether for meeting friends and family, or enjoying time alone. There are around 8870 company owned stores and 8139 licensed stores.Starbucks PromotionStarbucks carries out clutch promotion campaigns, principally in the form of promotions on the Print, TV and Radio 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 inc rease sales at their outlets, some of which are Sponsorships, Collaborations, Tie-ups, Starbucks Membership Card, etc.Starbucks PeopleThe passel at the stores have to undergo a training procedure so that they have an in-depth familiarity of the companys products and are able to provide best customer service. All employees are treated as partners and provided with comprehensive health coverage and stock in the company through the Bean Stock program to inculcate a sense of ownership and motivate them to perform their best.Starbucks ProcessThe order and talking to 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 manner of speaking once it is prepared. The company believes that although it is just a moment, in which one hand range 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 bring to pass a unique taste and aroma from its own blending 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 worry many other brands, Costa Coffee also offers a all-embracing 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 offer its preference in terms of caffeinated or decaffeinated coffee skimmed, full fat or soya milk variety of syrups flavors of vanill a, hazelnut or caramel, etc. Moreover, the store provides a nutritional content chart and lists of allergens in their food and drinks for its health-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 berth than that of Starbucks.Costa Coffee PlaceThe location of Costa Coffee outlets is in the areas where there is maximum youth movement. It is found generally ascend colleges, obtain 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 order 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 with 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 faculty member fetches the order to the table of the customer. (Costa Coffee, n.d.)Findings and RecommendationsStarbucks has an extremely strong brand two-bagger but they need to work 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 attend ant delivers the product to the table. This change whitethorn seem insignificant but it also improves customer satisfaction.ConclusionOur come made us reach the finishing that both, Costa Coffee and Starbucks Coffee, enjoys oppose customer preference. Although price and promotional schemes influence the decision of the people, but the taste of coffee is a very important factor in decision making 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 favorite(a) 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 dupe more crowd if they reduce their prices, along with providing offers.BibliographyCoffee Market. (n.d.). Retrieved May 4, 2011, from http//ww w.maketradefair.com/assets/side/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/