Starbucks presents itself as a high-quality coffee for the upper class and is priced slightly higher than the coffee from Caffe Nero. It stays true to its American originality and stands out uniquely in its wide range of coffee drinks with such just some snacks and desserts. Other than that, Starbucks distinguishes itself from other cafes by providing a very comfortable environment with facilities like Wi-Fi so that its customers can enjoy browsing the web while having their coffee.

On the other hand, Caffe Nero emphasizes its Italian mix and presents itself not only as a coffee shop but also as a bar and restaurant. It has quite an extensive menu with a variety of popular Italian dishes. Because of this, many people visit Caffe Nero to eat rather than just have a cup of coffee. They have brought a pure European atmosphere to their cafes, staying true to their originality. For the convenience of their customers and to add to their appeal, they have also launched loyalty cards.

MARKETING STRATEGY:

Marketing strategies help companies to promote their products and services in the way they want. While capitalizing on their biggest points, they try to create an image of their brand in the minds of their target customers to achieve their target sales and favorable market share. Marketing strategies help companies gain a competitive advantage by serving those specific niches that others fail to identify. Marketing strategies designed by organizations vary in duration, from one-year plans to plans that span many years. Many factors are taken into account when designing marketing plans and strategies that are defined by the environment in which the business operates. This is most often known as a SWOT (strengths, weaknesses, opportunities, threats) analysis which helps businesses identify areas they can take advantage of and areas they need to be wary of.

The most important factor that any company must take into account when creating its marketing strategies is its competitors. The actions of competitors have a great impact on what an organization must do. In the coffee chain industry, there are now many independent coffee shops in the UK, such as the most popular Starbucks, Monmouth Coffee, Coffee Aroma, The Apple Tree and Caffe Nero. In this assignment, Starbucks marketing strategies will be reviewed. and Caffe Nero, after which a critical analysis of both will be carried out.

STARBUCKS

The first Starbucks store opened in Seattle over thirty years ago. Today, Starbucks is proud to have $4.1 billion with thousands of outlets not only in the United States but around the world. Many companies have studied the secrets and strategies adopted by Starbucks in an attempt to find out how Starbucks grew so fast. The marketing strategies that Starbucks is currently adopting will be analyzed in this paper (voteforus.com 2011).

unique marketing strategy:

The marketing strategy adopted by Starbucks remains unconventional. They did not adopt the common styles of advertising using billboards, newspaper ads, or television commercials. Rather they engage by word of mouth to promote their brand.

Product quality:

The most important thing that Starbucks never lost control of is the quality of their coffee beans. They were the first to introduce the true Italian “burnt espresso” flavor to Americans. They justify their high quality by charging a slightly higher price than most other coffees.

comfortable environment:

Another focus of Starbucks outlets is the atmosphere they provide in their cafes for their customers. Starbucks has always been touted as the perfect place to unwind when you’re on the go and out of the office. They have started to offer Wi-Fi connectivity in their outlets so that their customers can also surf the Internet while enjoying their cup of coffee.

customer satisfaction:

Customer satisfaction is Starbucks’ strongest asset. Every customer who walks into a Starbucks store is treated so special that they truly feel like they are in a special place.

the starbucks community:

Starbucks has really made the most of the latest social media craze. They have adopted their latest marketing strategies around social networking websites, such as creating fan pages on Facebook and Twitter, where they respond to all customers and keep in touch by posting photos, videos and all the news. latest promotional information.

Innovation:

Starbucks has always kept its menu fresh by constantly creating new items and different blends and flavors in its coffee. Some of its latest successful beverages have been green tea with milk, considering health-conscious consumers, along with iced tea and frappuccino for its outlets in warmer climates.

brand marketing:

Starbucks has always presented itself as a high-quality product and therefore decided to rely solely on word of mouth promotion. This served to be quite a useful marketing strategy compared to promotional ads in magazines, newspapers, billboards, etc. They have recently started using social networking websites in the most effective way ever seen. Their Facebook and Twitter pages have proven to be very helpful in promoting Starbucks’ image while allowing them to have direct communication with all of their customers on a single platform.

BLACK COFFEE:

According to Caffe Nero Chairman Gerry Ford (2008), Caffe Nero Group Ltd is “the UK’s largest independent coffee retailer, with over 400 UK stores”. It was founded in the year 1977 and today it has open outlets abroad, as well as in Turkey and the Middle East. They set themselves apart from other cafes in the UK by emphasizing the fact that they are an Italian coffee company. Its main objective, in the words of Gerry Ford (2008), “is to provide a European-style cafeteria experience that offers premium espresso-based gourmet coffee, authentic Italian food products and a relaxed atmosphere in each store.”

Caffe Nero has received many awards for their high-quality coffee over the years and for the outstanding experience they offer in their stores. Tatler called Caffe Nero ‘The best espresso this side of Milan’ while Egon Ronay called it ‘The traditional Italian coffee’. Caffe Nero has also been awarded the UK consumer label ‘Best UK Coffee Shop’ for nine consecutive years (Allegra Report, The UK’s Definitive Guide to the Coffee Industry).

USP OF COFFEE NERO:

Caffe Nero’s marketing strategy is mainly focused on its unique selling point, which is a purely Italian theme. Caffe Nero presents itself as more than just a coffee. Rather it has created a perfect combination of cafe, bar and restaurant. Therefore, Caffe Nero is not limited to just providing a place for coffee and snacks, but you can go there just to enjoy a meal. They have a wide range of exquisite desserts along with many Italian dishes such as Italian wraps, soups, sandwiches, pastas, and paninis.

TARGET MARKET FOR CAFFE NERO

Caffe Nero is mainly aimed at tourists in the UK or Italians looking for their Italian taste in cooking. They are aimed at the middle-income group of middle-aged people, students or businessmen who prefer to go to a cafe during lunch time. In addition, Caffe Nero partnered with the famous House of Fraser retail chain, opening around 145 cafes, many of which were located inside House of Fraser stores (James, Situation Analysis of the Caffe Nero Group Ltd – Festival City

Critical analysis between the two companies

Now that a basic review has been given on the marketing strategies that both Starbucks and Caffe Nero are using, there will be an analysis on what sets them apart from each other.

• Caffe Nero and Starbucks are direct competitors, but Caffe Nero distinguishes itself from Starbucks by selling coffee cheaper than Starbucks.
• Caffe Nero offers a wider range of foods along with its coffee drinks, which sets it apart from Starbucks, which does not have such a wide range of assortments.
• Caffe Nero takes a strong brand positioning by emphasizing its European-style coffee shop versus Starbucks, which is American in origin. Caffe Nero has a unique outlet that emphasizes the continental style of cafes, while Starbucks is American in style.
• Starbucks has successfully opened thousands of outlets abroad and in the international market, while Caffe Nero still lacks international experience and has just opened its stores in Turkey and the Middle East.
• Starbucks has many outlets across the UK, while Caffe Nero does not have enough outlets in central London.
• Caffe Nero has a lot of growth potential because it enjoys many unique selling points like its pure European authenticity.

References

1. Ford, G (2008), ‘THE BEST ESPRESSO THIS SIDE OF MILAN’

2. Voteforus.com (March 29, 2011) Starbucks success is word of mouth/social media/viral marketing strategy

3. James, S, Analysis of the situation of Caffe Nero Group Ltd – Festive City

4. VoteforUs.com Starbucks Marketing Strategy Is Not Conventionally Effective

5. Kembell, B, Hawks, M, Kembell, S, Perry, L, Olsen, L 2002, ‘Catching Starbucks Fever’, Missouri State University. Unpublished.

6. Rajul (2010), ‘Starbucks vs. Caffe Nero vs. Coast: who wins?’