Product Strategy:
Costa coffee is one of the most popular and most widely visited coffee chain of the world. The most commonly sold products in their outlets are coffee, other beverages like hot chocolate, tea, cold coffee, and a wide range of food items like sandwiches, salads and soups for breakfast and lunch purposes. They also have items that are suitable for people who prefer vegetarian food and vegan food. The coffee offered in their outlets are of different varieties like cappuccino, latte, mocha, americano and so on, so customers can purchase their own choice of coffee. The items offered other than coffee also plays a major role in getting customers who like to have a combination of different items. Costa coffee's customer acquisition strategy is pull strategy as they attract customers through their products. The reviews provided by the customers have always been great and that has worked well for Costa Coffee in increasing their customer base. The success of Costa Coffee globally has been because of the customers liking their products, therefore they will be able to run a successful operation in US market as well.
Pricing Strategy:
The price of products offered in the Costa Coffee outlets are quite competitive and premium because they believe that the quality of their products is of top notch and the kind of varieties they offer also command for premium prices. Costa Coffee has always felt that price is secondary for their customers as the focus is on delivering the best quality products. The price varies as per the quantity ordered, and they also charge extra for additions like extra supplements like extra cream or extra chocolate. People in the US market who do not care about pricing and prefer best quality coffee will surely prefer Costa Coffee over its competitors like Starbucks and Barista. The premium prices will help in acquiring premium customers, so the quality of customer base will be good always.
Place Strategy:
The company generally sells its products to its customers through different exclusive outlets placed in various urban high end tier 1 cities as their target audience is upper middle class and rich people who can afford to pay premium prices. They also prefer to have outlets in shopping malls and airports where footfall is high. There are a number of shopping malls with large footfalls in tier 1 cities like New York, Chicago, Los Angeles and so on where Costa Coffee outlets can be opened. The large airports of US can also have the outlets and travelers can have visit these outlets and purchase their desired items.
Promotion Strategy:
Being a premium high end brand, Costa Coffee does not rely much on mass media advertisements. The most important promotional strategy that helps Costa Coffee in getting more and more customers is the word of mouth strategy. The customers who like the products and the experience share their positive feedback with the people in their circle and that drives customers to their outlets. They provide free samples in case of new products to their regular customers and get their reviews about it. Costa Coffee runs different loyalty programs for their frequent customers through which they can avail various discount offers in Costa Coffee outlets. Costa Coffee also takes the digital media route to connect with its customers, but this is executed at a small scale.
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