Marketing Analysis of Costa Cafee in the UK.

1. COMPANY ANALYSIS

1.1 Background

In 1971, Italian brothers Sergio and Bruno rib started a wholesale proceeding supplying roasted java to caterers and specialist Italian coffee betrays. Within a few years they were so notable for combining their roasting business with premium coffee shops, that Costa Coffee quickly became a dominant name on the UKs high streets.

The Costa brothers opened the first Costa retentiveness in London in 1978 and maturement expanded at the rate of two stores per year with the help of their family and friends in the business.

In October 1995, fare and drinks giant Whitbread PLC acquired Costa and immediately established the brand as the market leader in the premium coffee shop sector. Developments such as the new roaster were crucial to Costa. With huge growth over the 1990s the company had increased to 186 stores by 1999 and in 2000, 3.7 one thousand thousand cups of coffee were sold each week (source: http://www.stannah.co.uk).

Costa is presently the leading UK branded coffee shop with over ccc stores (source: www.costa.co.uk).

1.2 Financial situation.

Pre-tax profits for Costa Ltd improved from £1.1m in 2001 to £6.9m in 2002. Between 2001 and 2002, the pre-tax profit increased by almost 553% probably due to an increase of the economy of scale. Indeed, Costa opened some(prenominal) outlets during this year. Turnover for the company rose by 19.



1% with £89.5m. A characteristic Costa outlet has a turnover of between £4,000 and £7,000 per week, excluding VAT.

1.3 steer Market Selection

There are so many different variants of coffee shops that there is something for everyone. Consequently, it is difficult to define the target market for durability branded coffee shops since by their nature they have a very wide and disparate target market. Moreover it is in general influenced by the location of the coffee shop...

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