Costa Coffee is the subsidiary of the Coca-Cola company. It is a coffeehouse chain which is headquartered in Dunstable, England. Costa Coffee was founded by two brothers Bruno and Sergio Costa in 1971. They started their operations from London by providing roasted coffee to caterers and Italian coffee shops. Costa Coffee was acquired by Whitbread in 1995 and was later in 2019 sold to The Coca-Cola Company for an estimated deal worth 3.9 billion pounds. Costa Coffee is currently operating 2121 restaurants in UK and 3401 stores across the globe. Costa Coffee is the largest coffeehouse chain in UK and the second largest in all over the world.

Starbucks of Coca-Cola company

Starbucks is an American based multinational coffeehouse chain. It is the largest coffeehouse chain in the world. It is considered a staple in the United States. Starbucks was founded by three students of University of San Francisco namely Jerry Baldwin, Gordon Bowker and Zev Siegel. They opened their first store in historic Pike Place Market in Seattle in 1971. The three of them founded Starbucks because of their love for coffee. The company now operates 30000 stores across the globe as of 2020. Starbucks offers whole-bean coffee, hot and cold drinks and different kinds of tea products. Some stores also offer packaged food items and sandwiches and gift items such as mugs and tumblers.

Entry Strategy of Coca-Cola company

Costa Coffee

Costa coffee entered global market with selective targeting strategy targeting upper middle-class people. This strategy enables Costa Coffee to focus on just one segment of the market and introduce new products. Costa Coffee is now operating more than 3400 stores all over the world. The next strategy they are using is cost leadership. Costa Coffee is attracting their customers through this strategy. Costa Coffee markets itself as a premium brand which offers quality coffee with everlasting taste. Whitbread the previous parent company of the company also provided an edge to Costa Coffee with its presence in hospitality industry and having infrastructure to support Coffee business. Company also have limited presence in developing countries to focus on its target market and reduce operational cost and increase profit (Chaston, 2012).

Starbucks of Coca-Cola company

Starbucks adopted the franchising strategy and made partnerships with stores all around the world. Moreover, Starbucks is also using another strategy for entering in the market is related to differentiation. Starbucks is involved in introducing different kind of products for their customers. Starbucks made joint ventures with the country’s stores to make itself enter into the international market. Also, Starbucks offers great environment in its cafés which attracts locals to sit their and have chit chat and have a good time. Starbucks matched its offerings to the country it is operating in (Malobi Mukherjee, 2014).

Product Strategy of Coca-Cola company

Costa Coffee

Costa Coffee main product is coffee. The company offers various flavours of coffee. The company’s most popular offerings include Cappuccino, Latte, Flat white, Americano, Mocha, Expresso etc. Costa Coffee also offers Ice blended beverages which include coffee cream, Mocha cream Frostino, Lemonade etc. The company also sells its product via vending machines with the brand Costa Express. The company uses pull strategy to attract its customers with its premium coffee blends. The company uses wow factor and believes in giving customer a premium and refreshing experience. Costa Coffee uses high quality coffee beans for its products. Costa also works with distributers all around the world to source high-quality coffee beans (Chaston, 2012).

Starbucks of Coca-Cola company

Starbucks offers a range of products which include coffee, handcrafted beverages, merchandise and baked items. Starbucks offers more than 30 blends of Coffees and also single origin primum coffees as well. Hand crafted beverages include freshly brewed coffee, hot and iced espresso beverages, Iced coffee, cold brew, Nitro coffee, Frappuccino coffee, non-coffee blended beverages, Starbucks refreshers and Teavana teas. Starbucks also offers its own branded merchandise which include Coffee and tea brewing items, mugs and accessories, packaged items, books and gifts. Company also offers fresh food items which include baked pastries, cold and hot sandwiches, salads, salad and grain bowls, oatmeal, yogurt parfaits and fruit cups. Starbucks also provides take out services and dine in services. Starbucks employees are trained with customer needs in mind and they provide best in class order taking services. Starbucks products can also be found on convenience stores and gas stations (Malobi Mukherjee, 2014).

Promotion Strategy of Coca-Cola company

Costa Coffee

Costa Coffee markets itself as a premium brand. Costa Coffee due to its loyal brand following relies on word of mouth strategy for promotion. The company not just provides coffee, it provides a premium experience. Company also uses free sampling to get the reviews of customers. The company also uses digital media as its promotional strategy to connect with customers. One of the popular promotional campaigns of the company is Shakeup Summer in which the company promotes its cold coffee products (Bhasin, 2018).

Starbucks of Coca-Cola company

Starbucks uses the power of social media as its promotional strategy. The company also introduced an animated series which depicted life inside a Starbucks store. The series gained popularity among Starbucks regular customers. Also, Starbucks sells merchandise with its own brand name as a promotional strategy. This attracting looking merchandise adds value to the brand (Pratap, 2019).

Conclusion of Coca-Cola company

Summing up all the discussion from above, it is concluded that Costa Coffee and Starbucks considered as coffee making companies. Costa Coffee is the subsidiary of the Coca-Cola Company. Starbucks is an American based multinational coffeehouse chain. Costa coffee entered global market with selective targeting strategy targeting upper middle-class people. Starbucks adopted the franchising strategy and made partnerships with stores all around the world. The company uses wow factor and believes in giving customer a premium and refreshing experience. Costa Coffee uses high quality coffee beans for its products.

Company also offers fresh food items which include baked pastries, cold and hot sandwiches, salads, salad and grain bowls, oatmeal, yogurt parfaits and fruit cups. The company not just provides coffee, it provides a premium experience. Company also uses free sampling to get the reviews of customers. The series gained popularity among Starbucks regular customers.

References of Coca-Cola company

Bhasin, H. (2018, March 5). Marketing Strategy of Costa Coffee – Costa Coffee Marketing Strategy. Retrieved from MARKETING91: https://www.marketing91.com/marketing-strategy-costa-coffee/

Chaston, I. (2012). Strategy for Sustainable Competitive Advantage: Surviving Declining Demand and China's Global Development. Routledge.

Malobi Mukherjee, R. C. (2014). Retailing in Emerging Markets: A policy and strategy perspective. Routledge.

McGrath, R. G. (2013). The End of Competitive Advantage: How to Keep Your Strategy Moving as Fast as Your Business. Harvard Business Press.

Pratap, A. (2019, August 25). MARKETING STRATEGY OF STARBUCKS. Retrieved from notesmatic: https://notesmatic.com/2017/01/marketing-strategy-of-starbucks/