Using publicly available resources and other references compare and Essay

Using publicly available resources and other references compare and critically analyse the UK marketing strategies of Caffe Nero and Costa Coffee - Essay Example Costa Coffee which is the leading company has 1,770 outlets; Starbucks has 790 outlets while the third company, Caffe Nero has 560 outlets. The three remains the leading brands controlling 54% of the coffee market. One of the notable aspects that make the UK coffee shop market to be robust is the predictable nature of the coffee consumption pattern in the country. For example, Allegra Strategies definitive report indicated that one out of five coffee shop customer must visit the outlet every day. This makes the producers to adopt effective strategies aimed at creating strong positive consumer-brand relationship resulting to the expansion of the market. This paper aims at comparing and critically analyzing the UK marketing strategies of Caffe Nero and Costa Coffee. Caffe Nero is a European based company that is headquartered in London. Having being established by Gerry Ford in 1997, the coffee house has expanded its market as a way of increasing the number of customers and raising sales. Currently, Caffe Nero operates in UK, Cyprus, US, Ireland, Poland, UAE AND Turkey. One of the major aspects that make the company to remain competitive and face off Costa Coffee and other rivals in the UK market is product diversification. For example, in addition to traditional Espresso-based brands, Caffe Nero has introduced brands such as Frappe, Fruit Boosters, Hot Chocolate Milano, Latte, Caramelatte, White Chocolate and pasta salads among others. According to Mulhern (2009), for any company to have a competitive edge, it must invest in research and development as well as brand innovation. Caffe Nero has also adopted an effective marketing mix that takes into consideration the needs of the UK consumers. As noted earlier, Caffe Nero has significantly invested in various brands. With more than 20 types of brands, Hilton (2013) indicates that the company has been in a position to meet the needs of its customers. In addition, the strong brand name,