20 April Waqar UH Marketing Across AIUpdated

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Contents
An Across Cultural Marketing Plan for Costa Coffee in Brazil and India ..................................... 3
Executive Summary ........................................................................................................................ 3
Introduction ..................................................................................................................................... 3
Background ................................................................................................................................. 3
Aim of the Report:....................................................................................................................... 4
Describe the new market to enter: .................................................................................................. 4
Situation Analysis: .......................................................................................................................... 5
Current Context: .......................................................................................................................... 5
Customers: ................................................................................................................................... 5
Competition: ................................................................................................................................ 5
Franchising: ................................................................................................................................. 6
Environmental Analysis:................................................................................................................. 7
PESTLE Analysis of Brazil: ....................................................................................................... 7
PESTLE Analysis of Costa Coffee in India: ............................................................................... 8
SWOT Analysis .............................................................................................................................. 9
SWOT Analysis of Costa Coffee in Brazil: .............................................................................. 10
SWOT Analysis of Costa Coffee in India: ................................................................................ 10
Porter's Five Forces:...................................................................................................................... 10
STP Analysis:................................................................................................................................ 12
Impact of culture on the company/brand and the new entry ......................................................... 13
Recommended objectives and strategy ......................................................................................... 14
Objectives: ................................................................................................................................. 14
Strategy: .................................................................................................................................... 14
Proposed marketing mix (4Ps) ...................................................................................................... 14
Product: ..................................................................................................................................... 15
Price:.......................................................................................................................................... 15
Place: ......................................................................................................................................... 15
Promotion: ................................................................................................................................. 15
Conclusions:.................................................................................................................................. 15
1
Future Recommendations: ............................................................................................................ 15

References ..................................................................................................................................... 16
List of Figures
Figure 1: market entering strategies ................................................................................................ 6

Figure 2: PESTLE analysis ............................................................................................................. 7
Figure 3: SWOT analysis ................................................................................................................ 9
Figure 4: porter's five forces model .............................................................................................. 11
Figure 5: 5C analysis .................................................................................................................... 13
Figure 6: marketing mix (4p's)...................................................................................................... 15
2
An Across Cultural Marketing Plan for Costa Coffee in Brazil and India
Executive Summary
Costa Coffee, a prominent international coffee chain, pursues to enlarge its operations into new
global markets. Costa Coffee offers a variety of snacks but in Brazil and India I just start coffee
café initially. As an international business consultant, this report provides a detailed analysis of
the potential impact of cultures on Costa Coffee's marketing strategy and suggests a culturally
conversant marketing plan for fruitful market entry. Depiction on academic theories, cultural
models, and frameworks, the report recognizes key cultural factors persuading consumer
behavior and preferences, and delivers strategic recommendations to familiarize Costa Coffee's
marketing approach accordingly. As an international business consultant I choose two new
countries in which I want to expand my business as a new entrant. These two countries are Brazil
and India. Both countries initially will work in franchising marketing entry strategy.to
successfully implement Costa Coffee in two countries need to blend their core taste with both
countries native and local taste. It will helpful to boost the business in Brazil and India. It will
inspect the market dynamics,(Kotler and Keller, 2016)consumer preferences, competitive
background, and cultural aspects influencing the success of Costa Coffee's entry strategy. Costa
Coffee will face high competition in both countries due to other national and international
competitors that have already worked in these countries. As an international business consultant I
will choose the franchising strategy for the Costa Coffee to expand its business without any
major investment in Brazil and India. I will give suggestion for future enlargement to focus on
the local cultural values, norms and customers’ preferences and their taste and need to adopt
marketing strategies for local and worldwide.
Introduction
1. Background of costa coffee

Costa Coffee, a well-known coffeehouse chain, was founded in 1971 by Sergio and Bruno Costa
in London, United Kingdom. Since its beginning, it has developed to become one of the world's
leading coffee brands, recognized for its high-quality coffee blends, attractive atmosphere, and
promise to customer service. Costa Coffee's success is credited to its commitment to delivering
3
premium coffee experiences to its customers, attached with (Panteleeva and Borozdina, 2021) its
strategic development initiatives.
Costa Coffee has set determined global expansion goals aimed at increasing its occurrence in key
international markets while beating into developing coffee cultures worldwide. As of the most
current data, Costa Coffee operates over 3,800 stores across 32 countries (Ibrahim et al., 2023).
Its development strategy focuses on entering new markets, expanding its footmark in existing
markets, and familiarizing its offerings to furnish to local tastes and preferences. The selected
new markets for Costa Coffee's expansion are Brazil (Raimondo, 2022) and India. With its
growing middle class, growing urbanization, and increasing demand for coffee culture, India and
Brazil present a worthwhile opportunity for Costa Coffee to further enlarge its global footmark.
By entering the Indian and Brazil market, Costa Coffee goals to capitalize on the increasing
coffee consumption trends and found itself as a premium coffee brand in these regions.
2. Aim of the Report:

The aim of this report is to deliver a complete analysis of Costa Coffee's expansion into the
Indian and Brazil market. It will inspect the market dynamics, (Kotler and Keller,
2016)consumer preferences, competitive background, and cultural aspects influencing the
success of Costa Coffee's entry strategy. By leveraging market research, consumer intuitions, and
strategic recommendations (Huang and Rust, 2021), this report aims to support Costa Coffee in
evolving an effective market entry strategy personalized to the exclusive features of the Indian
and Brazil market. This development aligns with Costa Coffee's vision of becoming the preferred
coffee endpoint for consumers globally. By upholding its status for quality and consistency while
implementation diversity and innovation, Costa Coffee aims to continue its growth route and
coagulate its position as a global leader in the coffee industry.
Describe the new market to enter:

The new market for Costa Coffee is Brazil and India. Brazil offerings a outstanding opportunity
for Costa Coffee due to its gigantic population, developing middle class, and emergent coffee
consumption trends. Moreover, Brazil has a tongue-in-cheek coffee culture, which bring into line
well with Costa Coffee's brand exclusivity and offerings. The market is characterized by a
different consumer base with adjustable preferences and lifestyles, providing adequate chances
4
for Costa Coffee to modify its marketing strategies (Johnson et al., 2020) to different segments.
The new market Costa Coffee goal to enter is India, a speedily rising economy with a varied
population and a growing coffee culture. India offers enormous potential for Costa Coffee's
expansion.
Situation Analysis:
1. Current Context:
Costa Coffee has achieved considerable success in frequent worldwide markets, as well as
Europe, the Middle East, and Asia. However, as part of its growth strategy, the company is
seeing entering developing markets like Brazil and India to capitalize on rising consumer
demand for specialty coffee.
2. Customers:
The target customers for Costa Coffee contain urban professionals, students, and coffee fans
seeking high-quality coffee beverages and a contented café environment. In Brazil and India, the
company will provide to various consumer segments (Maciejewski et al., 2019), as well as young
professionals, students and urban inhabitants with throwaway incomes.
3. Competition:
In Brazil and India, Costa Coffee will face rivalry from both national and international coffee
chains, as well as native cafes and beverage channels. Opponents may include Starbucks, Café
Coffee Day (India), Brazil Espresso, and native coffeehouses.
5
Market entering strategy
Figure 1: market entering strategies
Franchising:
Costa Coffee's achievement in entering new markets depends on collaborations with native
suppliers, distributors, and license partners. Costa coffee use the franchising strategy to enter the
(Alon, 2006) in the Brazilian market and as well as in Indian market. Costa Coffee can influence
the franchising model to enter both markets. By collaborating with local franchisees who have a
profound understanding (Sandin Vazquez et al., 2019) of the resident market changing aspects,
culture, and consumer likings, Costa Coffee can quickly enlarge its company without important
capital investment. Franchisees can also help circumnavigate governing requirements, create
supply chains, and familiarize the brand to native tastes and preferences. Forming strong
relationships with native collaborators is important for sourcing high-quality coffee beans,
fortifying prime locations for cafes, and steering governing requirements.
6
Environmental Analysis:
Figure 2: PESTLE analysis
PESTLE Analysis of Brazil:

1. Political Factors: 2. Technological Factors:
 Stability:  Digitalization:
Brazil has practiced eras of political instability, Leveraging technology for online ordering,
which can influence business operations. imbursement structures, and constancy
 Government Regulations: packages can improve customer experience.
Acquiescence with regulations linked to food  Innovation:
safety, labor laws, and taxation is important. Accepting innovative making techniques or
justifiable practices can distinguish Costa
Coffee in the market.
3. Economic Factors: 4. Legal Factors:
 Economic Growth:  Regulatory Compliance:
Brazil's rising economy offerings opportunities Loyalty to health and safety principles,
for growth, but economic variations can pose knowledgeable property laws, and licensing
challenges. requirements is critical.
 Currency Exchange Rates:  Employment Laws:
Variations in exchange rates may affect Costa Acquiescence with labor laws concerning
Coffee's cost-effectiveness, especially if it wages, working hours, and employee rights is
imports coffee beans or other materials. important.
7
5. Social Factors: 6. Environmental Factors:

 Coffee Culture:  Sustainability Practices:
Brazil has an ironic coffee culture, offering a Implementation eco-friendly steps like
satisfactory environment for Costa Coffee's biodegradable packaging and maintainable
entry. sourcing can demand to environmentally
 Lifestyle Changes: mindful consumers.
Shifts in consumer inclinations towards  Climate Change:
superior coffee experiences can initiative Climate inconsistency may impact coffee bean
demand. production, affecting the source chain and
rating.
PESTLE Analysis of Costa Coffee in India:

1. Political Factors: 2. Technological Factors:
 Stability:  Digital Adoption:
India's constant political environment raises a India's growing digital saturation enables
productive environment for business growth. Costa Coffee to leverage online channels for
 Government Policies: marketing and sales.
Loyalty to regulations regarding to foreign  Mobile Payments:
investment, food safety, and taxation is Acceptance of mobile payment systems
authoritative. simplifies appropriate transactions for
customers.
3. Economic Factors: 4. Legal Factors:
 Economic Growth: India's speedily  Regulatory Compliance:
growing economy bargains Acquiescence with food safety values, logical
opportunities for development, mainly property laws, and labor regulations is
in urban centers. important.
 Disposable Income: Growing  Franchise Regulations:
disposable incomes and an increasing Thoughtful and observing to franchise laws
middle class drive petition for top class and regulations for business operations and
coffee experiences. development.
8
5. Social Factors: 6. Environmental Factors:

 Cultural Diversity:  Sustainability Initiatives:
India's varied population offerings Applying justifiable practices in sourcing,
opportunities for Costa Coffee to modify its packaging, and waste management can boost
offerings to native tastes and preferences. brand repute.
 Changing Lifestyles:  Environmental Regulations:
Development and changing consumer lifestyles Acquiescence with environmental guidelines
have directed to enlarged demand for coffee and standards to diminish ecological
among younger demographics. impression.
SWOT Analysis
As an international business consultant I will do the SWOT analysis (Wang, 2007) of costa
coffee in Brazil and India .let’s see what’s are their strengths, weaknesses and what are their
opportunities to grow the business in these two developing countries and what will be the threats
for it.
Figure 3: SWOT analysis
9
SWOT Analysis of Costa Coffee in Brazil:

 Strengths  Weaknesses
Strengths of the costa coffees are its brand Adapting to the local taste.
recognition and the quality of the coffee.
 Opportunities  Threats
Brazil has growing coffee culture. Competition from native brands as well as
other international brands of coffee chains.
SWOT Analysis of Costa Coffee in India:

 Strengths  Weaknesses
Costa Coffee's strengths contain its worldwide Comprise familiarizing to local tastes and
brand gratitude and know-how in conveying inclinations.
high-quality coffee experiences.
 Opportunities  Threats
India's flourishing café culture. Whereas threats contain competition from
reputable players like Café Coffee Day and
Starbucks etc.
Porter's Five Forces:

This model identifies and analyze the five competitive forces that shape out every industry and
help out (E Porter, 1998) the industry to determine the weaknesses and strength of the industry.
10
Figure 4: porter's five forces model

Brazil India
 Threat of new entrant  Threat of new entrant
The moderate threat of new entrants specifies The threat of new entrants into the coffee
that whereas there are some barriers to entry, industry in India is comparatively low due to
they are not insuperable. Aspects contributing substantial barricades to entry. These barriers
to this valuation might include: contain the need for significant capital
Brand Recognition investment, brand appreciation, and well-
Barriers to entry known distribution webs.
Regulatory environment
 Bargaining power of suppliers  Bargaining power of suppliers
The relatively low bargaining power of The bargaining power of suppliers in the coffee
suppliers advises that coffee producers in manufacturing in India is moderate. Although
Brazil may have inadequate leverage over there are several coffee bean dealers
coffee chains like Costa Coffee. This worldwide, the quality and reliability of supply
assessment may be prejudiced by aspects such can differ, impacting the bargaining power of
as: coffee chains like Costa Coffee.
Abundance of supplier
Commodity nature of coffee
Global supply chain
11
 Bargaining power of buyers  Bargaining power of buyers

Bargaining power of buyers is moderate to The bargaining power of buyers, such as single
high due to following factors: consumers and businesses, is comparatively
Consumer preferences high in the Indian coffee market. Customers
Brand loyalty have a varied range of selections when it arises
Economic factors to coffee chains, native cafes, and substitute
beverages.
 Threat of Substitute Products  Threat of Substitute Products
Threat of substitute of costa coffee in Brazil is The threat of supernumerary products in the
moderate due to the following reasons: Indian coffee marketplace is moderate.
Diverse beverage options Although coffee chains like Costa Coffee face
Health issues rivalry from other coffee chains and indigenous
cafes, they also compete with substitute
beverages such as tea, juices, and soft drinks.
 Intensity of Competitive Rivalry  Intensity of Competitive Rivalry
Competition is very in Brazil coffee market The intensity of competitive rivalry in the
due to the following factors: Indian coffee industry is high. Costa Coffee
Presence of already established coffee chains contests with both global coffee chains like
Price competition Starbucks and resident players that have a
Product differentiation robust occurrence and faithful customer base.
STP Analysis:
STP analysis basically (segmentation, targeting and positioning) analysis in which I choose 2c’s
from the 5c’s. These two are here that I will explain according to Brazil market.
12
Figure 5: 5C analysis
Brazil India
1. Customers: 1. Customers:
Brazilian customers have various preferences, Indian customers show varied preferences,
alternating from outdated coffee drinkers to from traditional tea drinkers to young town
those seeking worldwide café experiences. specialists seeking finest coffee experiences.
2. Competition: 2. Competition:
Costa Coffee will face rivalry from native Costa Coffee faces competition from both
coffee chains like Café do Ponto and resident and worldwide coffee chains, each
worldwide players like Starbucks. cuisine to diverse sectors of the market.
Impact of culture on the company/brand and the new entry

Culture plays an important part in determining consumer behavior and preferences in Brazil.
Brazilian cultural values and norms, social connections and reliable coffee usage offer a chance
for Costa Coffee to place itself as a public hub. Additionally, understanding cultural gradations
such as the liking for sugared coffee drinks can inform product contributions and marketing
messages to vibrate with resident tastes.
13
Culture meaningfully effects consumer behavior in India. The country's rich coffee culture,
social taxes, and cooking preferences shape the way consumers remark and interrelate with
coffee brands. Understanding cultural shades such as the importance of welcome and the role of
entertaining in café culture can inform Costa Coffee's marketing strategies and product
contributions to vibrate with Indian consumers.
Recommended objectives and strategy
Objectives:
 Upsurge brand cognizance and market share in Brazil by 20% and 15% in India within
first year.
 Create Costa Coffee as a favorite terminus for social congregations and relaxed coffee
experiences.
Strategy:
 Leverage cultural understandings to adapt marketing communications and product
offerings to Brazilian and Indian preferences.
 Collaborate with resident influencers and community trials to shape brand reliability and
commitment.
 Implement training packages for staff to confirm cultural compassion and genuineness in
customer communications.
Proposed marketing mix (4Ps)
14
Figure 6: marketing mix (4p's)
Product:
Familiarize local coffee blends and menu items enthused by Brazilian and Indian flavors, while
continuing Costa Coffee's fundamental offerings. Highlight the quality and freshness of elements
to demand to discriminating Brazilian and Indian consumers.
Price:
Implement a competitive pricing strategy (Griffith and Rust, 1997) that replicates resident
purchasing power while stressing the value proposition of Costa Coffee's best coffee experience.
Place:
Choose the strategic places in high-traffic areas and city centers to make best use of
distinguishability and availability. Consider partnership with native retailers or hotels to enlarge
the distribution networks.
Promotion:
Develop culturally relevant marketing campaigns (Williams-Sanchez, 2021) that rejoice
Brazilian and Indian coffee culture and routine. Use social media networks and observed
marketing events to involve with consumers and drive brand attraction.
Conclusions:
In conclusion, entering the Brazilian market offerings both chances and tasks for Costa Coffee.
By leveraging cultural visions and applying a strategic marketing plan, Costa Coffee can
effectively start its presence and capitalize on Brazil's rising coffee culture. Costa Coffee's entry
into the Indian market offerings important opportunities for growth, but achievement will depend
on its capability to familiarize its marketing strategies and contributions to line up with Indian
cultural favorites and market subtleties.
Future Recommendations:
 Put emphasis on the importance of cultural intellect and elasticity in adopting marketing
strategies across various worldwide markets.
 Nonstop investment in cultural research and consumer understandings to sustain
significance and effectiveness.
15
 Implement a corporate culture that values multiplicity and inclusivity to support fruitful
international enlargement efforts.
References
ALON, I. 2006. Market conditions favoring master international franchising. Multinational
Business Review, 14, 67-82.
E PORTER, M. 1998. Competitive strategy: Techniques for analyzing industries and
competitors.
GRIFFITH, D. E. & RUST, R. T. 1997. The price of competitiveness in competitive pricing.
Journal of the Academy of Marketing Science, 25, 109-116.
HUANG, M.-H. & RUST, R. T. 2021. A strategic framework for artificial intelligence in
marketing. Journal of the Academy of Marketing Science, 49, 30-50.
IBRAHIM, H., TUNDE, O. A., HAMID, N. A. N. A., MAHADIR, N. A. N., ANUAR, N. A. B.
W., AZAMUDDIN, N. A., ABIMANYU, N., NISAK, N. A., SHINDE, A. S. &
16
PRIYANKA, K. 2023. Espresso Yourself: Are You A Coffeeholic? A Study of

Customers Satisfaction on Costa Coffee in Malaysia. International Journal of Tourism
and Hospitality in Asia Pasific (IJTHAP), 6, 75-87.
JOHNSON, J., WHITTINGTON, R., REGNÉR, P., ANGWIN, D., JOHNSON, G. &
SCHOLES, K. 2020. Exploring strategy, Pearson UK.
KOTLER, P. & KELLER, K. L. 2016. Marketing Management, Pearson Education Limited. New
York.
MACIEJEWSKI, G., MOKRYSZ, S. & WRÓBLEWSKI, Ł. 2019. Segmentation of coffee
consumers using sustainable values: Cluster analysis on the Polish coffee market.
Sustainability, 11, 613.
PANTELEEVA, M. & BOROZDINA, S. 2021. Sustainable Urban Development Strategic
Initiatives. Sustainability, 14, 37.
RAIMONDO, E. 2022. Coffee industry market strategies in developing countries. Politecnico di
Torino.
SANDIN VAZQUEZ, M., RIVERA, J., CONDE, P., GUTIÉRREZ, M., DÍEZ, J.,
GITTELSOHN, J. & FRANCO, M. 2019. Social norms influencing the local food
environment as perceived by residents and food traders: The heart healthy hoods project.
International journal of environmental research and public health, 16, 502.
WANG, K.-C. Year. A process view of SWOT analysis. In: Proceedings of the 51st Annual
Meeting of the ISSS-2007, Tokyo, Japan, 2007.
WILLIAMS-SANCHEZ, V. L. 2021. Culturally relevant marketing: Conceptualising a critical
pedagogical approach to multicultural marketing strategy. Journal of Cultural Marketing
Strategy, 6, 61-72.
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Page 1 of 19 - Cover Page Submission ID trn:oid:::1:2883576788

Submission Date 3,119 Words

Apr 12, 2024, 6:18 PM UTC

Apr 12, 2024, 6:19 PM UTC

Page 1 of 19 - Cover Page Submission ID trn:oid:::1:2883576788

How much of this submission has been generated by AI?

It is essential to understand the limitations of AI detection before making decisions

* Low scores have a higher likelihood of false positives.

Frequently Asked Questions

What does the percentage mean?

How does Turnitin's indicator address false positives?

What does 'qualifying text' mean?

Page 2 of 19 - AI Writing Overview Submission ID trn:oid:::1:2883576788

Future Recommendations: ............................................................................................................ 15

Figure 1: market entering strategies ................................................................................................ 6

1. Background of costa coffee

2. Aim of the Report:

Describe the new market to enter:

Market entering strategy

Figure 1: market entering strategies

Figure 2: PESTLE analysis

PESTLE Analysis of Brazil:

5. Social Factors: 6. Environmental Factors:

PESTLE Analysis of Costa Coffee in India:

5. Social Factors: 6. Environmental Factors:

Figure 3: SWOT analysis

SWOT Analysis of Costa Coffee in Brazil:

SWOT Analysis of Costa Coffee in India:

Porter's Five Forces:

Figure 4: porter's five forces model

 Bargaining power of buyers  Bargaining power of buyers

Impact of culture on the company/brand and the new entry

Recommended objectives and strategy

Proposed marketing mix (4Ps)

Figure 6: marketing mix (4p's)

PRIYANKA, K. 2023. Espresso Yourself: Are You A Coffeeholic? A Study of

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