Contents

1 Market Overview - Value/Sales/Volume/Growth in recent years

2 Market Forecasts

3 Macro - environment analysis of the market Social Political Technological

4 Geographical Spread of Market/ Pattern of Demand

5 Analysis of Main Competitors Starbucks Costa Coffee Caffe Nero

6 Barriers to entry

7 Price sensitivity

8 Customer Profile

9 Supply

10 Conclusion

1 Market Overview - Value/Sales/Volume/Growth in recent years

The coffee industry has grown rapidly since the 1990s; before Starbucks emerged, people were used to drinking low quality coffee from tins. Starbucks introduced fresh coffee made from top quality beans that have excellent taste and drinks such as the caffe latte and …show more content…

Its success allows it to spend more on marketing and consumer research to retain its lead.
Takes measures to trade ethically and offers fair trade coffee

Weakness
High prices

Opportunities
Appeal to an increasingly wide audience implies continued growth and development of their retail stores

Threats
Fast growing competition who may offer cheaper products.
Maintaining intimacy and communication with their customers and a sense of atmosphere and culture despite continued growth.

Costa Coffee
Strengths
Italian influenced culture founded on Italian expert knowledge of roasting coffee beans to make quality handmade drinks.
Well established in the market and strong customer loyalty as Costa re-identified themselves as a brand with design group ‘Mother'

Weaknesses
Costa coffee has had trouble establishing itself as a distinctive brand. Although Italian in origin, research showed many of its customers perceived it as South American in 2000, and it is making efforts to re- assert its Italian heritage

Opportunities
Expanding rapidly with 50 new outlets opening every year in the UK

Costa Nero
Strengths
Variety of products available - serves pasta, hot paninies and soups in addition to hot drinks gives appeal to lunchers

Opportunities
Expansion; Caffe Nero is opening stores in shopping outlets and