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This document discusses strategies for differentiation in the coffee brewing industry. It provides profiles for Starbucks and Costa Coffee comparing their brand personalities.
Starbucks differentiates based on quality, experience, and human relationships. Their brand personality is outgoing, youthful and friendly. They focus on nurturing human connections within their communities.
Costa Coffee differentiates based on consistency, tradition and British culture. Their brand depicts maturity, luxury and relaxation. They emphasize quality and maintaining their Italian roots while embracing British sophistication.
The profiles compare the companies' expressions, personalities, cultures and strategies to distinguish themselves in the competitive coffee market.
This document discusses strategies for differentiation in the coffee brewing industry. It provides profiles for Starbucks and Costa Coffee comparing their brand personalities.
Starbucks differentiates based on quality, experience, and human relationships. Their brand personality is outgoing, youthful and friendly. They focus on nurturing human connections within their communities.
Costa Coffee differentiates based on consistency, tradition and British culture. Their brand depicts maturity, luxury and relaxation. They emphasize quality and maintaining their Italian roots while embracing British sophistication.
The profiles compare the companies' expressions, personalities, cultures and strategies to distinguish themselves in the competitive coffee market.
This document discusses strategies for differentiation in the coffee brewing industry. It provides profiles for Starbucks and Costa Coffee comparing their brand personalities.
Starbucks differentiates based on quality, experience, and human relationships. Their brand personality is outgoing, youthful and friendly. They focus on nurturing human connections within their communities.
Costa Coffee differentiates based on consistency, tradition and British culture. Their brand depicts maturity, luxury and relaxation. They emphasize quality and maintaining their Italian roots while embracing British sophistication.
The profiles compare the companies' expressions, personalities, cultures and strategies to distinguish themselves in the competitive coffee market.
This is the framework to compare the brand with person.
The typical question using this
approach is: "if BRAND-X was a person, who would you compare him with"? The person should consider 6 human traits then: 1. Physique - the main features of the product 2. Personality - the human character and attitude 3. Relationship - includes beliefs and associations about the brand 4. Culture - the integral representation of the brand and the organization 5. Reflection - how the brand is reflected in the customer mind 6. Self-image - the relation of the customer and the brand (can use or buy the product)
WHAT CAN BE DONE IN COFFEE BREWING INDUSRTY TO DIFFERENTIATE THEMSELVES?
As coffee-brewing industry is competitive, companies need to differentiate themselves in order to survive. Line management is a significant issue for coffee houses as often the demand is concentrated in the early mornings.
Starbucks In 1971, three friends passionate by fresh coffee opened the first Starbucks coffee in Seattle. They began to sell fresh roasted coffee beans and coffee machines. People came to their salon to savour ones of the best coffees of the world. In the beginning of the 80s, Howard Schultz (the actual CEO of Starbucks) joined the company and changes appeared. Indeed, after a trip in Italy, Howard decided to transpose in the USA the Italian tradition around coffee and make Starbucks not only a coffee salon where you share gourmet coffee but also an atmosphere that favours human relation. Today, with more than 15000 coffee shops in 50 countries, Starbucks became the largest worldwide coffee shop chain.
CostaCoffee
In 1971, two brothers, Bruno and Sergio Costa created the Mocha Italia Blend and started selling to businesses in the UK. A few years later, in 1978, the two brothers opened the first Costa Coffee in London. Costa offers always the same unique blend of coffee with beans that have been roasted in London. Costa focuses on the quality and does not offer a coffee that does not make the grade. Today, with more than 1300 coffee shops in the UK, Costa is the largest coffee shop chain in the UK. Costa is also the second largest chain worldwide with more than 600 coffee shops in 30 countries.
STARBUCKS
PHYSIQUE: PRODUCT ORIENTED - Starbucks does not compete on price but rather on the complete experience customers get while visiting the coffee shop.
QUALITY AND WIDE RANGE OF COFFEE- Starbucks offered some of the worlds finest fresh-roasted whole bean coffees and the seafaring tradition of the early coffee traders.
Expression (PHYSIQUE) name colour pattern shape logo typography SOFT AND COZY ATMOSPHERE Starbucks blog, she was chosen as the logo because Starbucks was looking for a nautical theme to capture the spirit of Seattle and thus giving a comfortable and warm look to its customers. Green signifies SECURE, NATURAL, EASY GOING, RELAXING. White signifies PURITY, SOPHISTICATION, and GOODNESS PERSONALITY: STARBUCKS demonstrates a persona that extends well beyond their brands functional benefits. Starbucks is outgoing, youthful, personable, and friendlya refreshing escape, freshness, warmth, and comfort.
It is demonstrated through their service interactions, their packaging, their dcor, their product offerings, and their corporate culture.
RELATIONSHIP:
The imagery always grabs my attention, especially first thing in the morning; because I know a good hot cup of coffee is waiting and perhaps some good conversation if the location is also a meeting place. Quoted by one of the Starbucks customer. The basis was relationships. Relationships with Cheers staff, customers, a trusted brand and forming friendships. Relationships are made and trusted friends can be found. Why else would you pay $4 for a coffee when you can get it anywhere else for $2?
Sophistication Excitement Sincerity CULTURE: Mission: to inspire and nurture the human spirit one person, one cup and one neighbourhood at a time. Every store is part of a community, and they take responsibility to be good neighbours seriously. They want to be invited in wherever they do business. They can be a force for positive action bringing together their partners, customers, and the community to contribute every day. Now as they see that the responsibility and the potential for good is even larger. The world is looking to Starbucks to set the new standard, yet again. It will lead.
REFLECTION: Connectivity When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. Its really about human connection. From the beginning, Starbucks set out to be a different kind of company. One that not only celebrated coffee and the rich tradition, but that also brought a feeling of connection.
SELF IMAGE:
As far as leadership goes, management and the corporate oce must accept that baristas are people, not simply tools as the espresso machines are. Each partner has a personality and it shouldnt be suppressed by unreasonable customer service, on-the-floor, and dress standards. They work directly with the folks that fund your life and the copious amounts of dollars you make every year. People come to Starbucks for a product, yes, but more importantly, it is for an emotional connection, and a genuine one at that. That is priceless and something only one human being can share with another human being, not conditioned employees. Glassdoor.com review by a former employeeSource: http://www.glassdoor.com/Reviews/Starbucks-Company-Reviews- E2202_P3.htm Connected Qualitative Traditional Environmentally and ethically responsible Perpetuate Traditions Quality Oriented Focus on Human Relationships COSTA COFFEE
PHYSIQUE: PRODULY BRITISH- The Company started in Seattle, Washington. The parent company is Whitebread PLC a global hotel headquartered in United Kingdom.
Signature, luxury, elegance and perfection Brand name Luxury and comfort Image Also ambience is trendy and soothing. upbeat & trendy - brown, red and white Logo relaxation and comfort. PERSONALITY: Traditional and responsible. The brand depicts maturity, luxury, excellence, warmth, relaxation and soothing personality. They give their each product a different identity which gives the brand a unique identity. Expresso strong, sharp, mocha italia Cappuccino frothy, refreshment, strong. Flat white- Invigoration, rich, velvety smooth Cortado Mocha Italia, rich. Latte mid morning, smooth, milky.
RELATIONSHIP:
Costa Coffee is set to adapt its ad strategy to focus on generating emotional engagement, starting with promotions for its new Costa Light variant.
The move to offset diet guilt marks a change in creative approach for the brand. Until now, Costas creative work has concentrated less on emotional appeal and instead tried to set the brand apart from its rivals.
Relationship Trust and consistency Satisfaction and polite. Accessible and pleasant REFLECTION: Matured, Social, Stylish and Trendy REAL COFFEE LOVERS. Costa coffee adapt it concept about the expectations of their actual and futures customers. When we ask to people which image represent Costa coffee for them; and giving a definition in one word, the most frequent words are: excellence, luxury and perfection.
SELF IMAGE: Sophisticated, sharing great moments, highest quality products. I am discretely elegant. I am perfect. The mantra followed by Costa coffee. The empathys is on luxury and comfort with style.
CULTURE: Sophistication and classicism
The advertisement associates the masses with good quality coffee using the famous colosseum in Rome, symbolizing the unique spot in the country Italy. Depicts Italian heritage and British culture. The ad simply use the heart shape together with the Costa logo to bring out the message of love, "Love Costa". Personifies compassion and commitment.
POINTS OF DIFFERENTIATION
BRAND PERSONALITY: Costa Coffee is differentiating themselves based on speed, the firm benefits from high- volume, low-margin sales. Starbucks, on the other hand, are aiming to differentiate based on quality. They have decided to lengthen their product line by using an upward stretch, where high quality and more expensive items are introduced: the company is introducing coffee made using rare, luxurious coffee beans. Low-volume, high-margin sales approach CULTURE: Starbucks mission is to inspire and nurture the human spirit one person, one cup and one neighbourhood at a time. It has a global look and persona Whereas, Costa Coffee is truly British and believes in I am discretely elegant. I am perfect. The firm keeps it Italian identity consistent with its products and depicts classicism as well as sophistication which is synonymous to British culture.
TARGET MARKET ENTRY: Costa Coffee have used a relatively low-risk form of market development market penetration hybrid strategy. Starbucks is also able to generate hype around their exclusivity that can create a short influx of customers, these new consumers may then try other drinks and products if the brand-swap encourages variety-seeking buying behaviour. Starbucks seems to be creating a more sustainable marketing strategy that will prove to be more competitive in the long-term.
Overall, one cannot really call one strategy more successful than the other. Costa Coffee clearly aim to maximise their profits; Starbucks aim to develop their brand around quality, As the most innovative company, its no surprise that the new technological addition, the Starbucks Card, boosted sales and helped growth during a time when the economy was struggling. Starbucks went back to basics, and theyve approached the basics with a science and intensity that no one has ever done before. BRAND IDENTITY PRISM OF HYPOTHETICAL BRAND: COFFEENERD HOW BUYERS MAKE CHOICE
Customers make choices based on their aspects of a brands identity. Starbucks creates brand equity by commanding a price premium in the market place. For example, consumers may pay $1.89 for a cup of Starbucks coffee when they could purchase the same volume for 69 cents at another coffee shop. If consumers prefer the Starbucks coffee and will pay more for it simply because of the label, their choices appear to be determined by their positive associations with the Starbucks name.
Brand effect- Consumer will pay extra for a cup of Costa Coffee simply because of its brand name, and not because the product is better.
Product effect- If the consumer believes that Starbucks uses a higher-quality bean or that the brewing methods produce a better-tasting coffee. Some aspects of the Maslows Hierarchy of needs explain the consumer behaviour to purchase in branded coffee shops. The first one is the love and belonging: consumers like to create a sense of connection and they feel the need to belong to a certain social category. In consuming Starbucks or Costa Coffee, they are looking for social approval. The two international brands have a real power in the purchasing habits. These kinds of brands became the place to be.
PHYSIQUE: Excellent Quality Original Indian Flavours Designed packaging
Allegra Strategies: UK coffee bar market still growing despite recession (2009) http://www.foodbev.com/report/uk-coffee-bar-market-still-growing-despite-recession
Market Assesment 2007: Coffee and Sandwhich Shops (2007)