Costa coffee digital marketing strategy

Coca-Cola has acquired Costa Coffee, which is large coffee chain based in London. It has locations throughout the Eastern Hemisphere.

Assume that Costa Coffee wants to expand into the Western Hemisphere, beginning with Brazil. Starbucks has a significant and growing presence in Brazil.

Review the following and respond to the questions. A suggestion is to have the team members discuss all five questions, but divide up the research and writing, with each team member taking a particular question.Costa Coffee August 2018 – deal announced in which Coca-Cola acquired Costa Coffee for $5.1 billion. Deal closed in January. Costa is based in London and has 4,000 stores in 31 countries (all in the Eastern Hemisphere). It has its own roaster and sells its coffee retail, as well as through coffee shops. Assume Coca-Cola seeks to move Costa into the Western Hemisphere, beginning with Brazil, which has a rich tradition for coffee drinking. Starbucks in Brazil Entered in 2006. Now operates 113 stores in 17 cities. Owned 51% by Cafeo Sereias do Brasil, a Brazilian company established to bring Starbucks to Brazil; and 49% by Starbucks. Offers local cuisine – “pao de queijo” which are balls of bread with cheese in dough, muffins with cheese and tomato; and a strong, extra roasted Brazilian blend of coffee. March 2018 – entered into licensing agreement with SouthRock, a leading multi-brand restaurant operator specializing in airport eateries, to develop and operate Starbucks stores throughout Brazil. With the ownership transition in Brazil, all Starbucks retail operations in Latin America and the Caribbean will become wholly licensed. September 2018 – Starbucks’ Brazilian coffee plantation was raided and found to have workers that qualified as slave labor. Ricardo Rico, general manager and vice president for Starbucks licensed store operations, Latin America – “Much of Starbucks success in Latin America and the Caribbean has been due to our knowledge of when to rely on local and regional trusted licensing partners to grow the business. For us, the right mix of ownership models – company owned, licensed or joint venture – has allowed us to remain focused on our biggest opportunities as we further accelerate growth across the globe, while always striving for the iconic Starbucks customer and partner experience. We are ready for this next phase of growth in Brazil and are proud to welcome SouthRock to our strong network of licensing partners in Latin America.” Assignment 1. Do a two-paragraph demographic and Hofstede cultural analysis on Brazil. Describe the potential customer base. 2. Do a two-paragraph ease of doing business, trade, and economic freedom analysis on Brazil. 3. In two paragraphs, explain what entry strategy you would recommend to Coca-Cola for Costa into Brazil (exporting; licensing/franchising; joint venture; or direct investment/acquisition).