Costa Coffee was founded by Italian brother Bruno and Sergio Costa in Lambeth. London in 1971. Then in 1995. Costa was sold to Whitbread Company as its subordinate. During the period of planetary economic recession. 2009. Costa achieved a singular degree with 60 % net income increased and 23 % gross increased1. Furthermore. as the largest java concatenation in UK. Costa paid? 36m for the acquisition of ‘Coffeeheaven’ at the terminal of 2009. So far. Costa Coffee operates in 28 states with the entire figure of 1. 600 stores2.

Then what are the cardinal successful factors which made Costa expanded rapidly with high profitableness in the fast growth and competitory java industry? In order to reply this inquiry. I will use PESTLE Model and STP Process to analyse the scheme and selling issues. Scheme: PESTLE As a constituent of the selling environment. the macroenvironment include many factors which have great consequence on the determinations of schemes. Political In 2010. the new authorities. alliance authorities ( Cameron Ministry ) . published several new policies which caused the lessening of the canvass evaluation for the party3.

And one of them is the Tax policy. During the past two old ages. the VAT rate had a fluctuation: lessening from 17. 5 % to 15 % and back to 17. 5 % in 2009/2010 and increase to 20 % in 2011. Clearly. the low VAT rate agencies lower monetary value to clients and so take more gross revenues. Besides the 20 % VAT rate will impact the Costa clients since they may seek to halt purchasing or purchase less to defy the VAT rise. Due to the increasing demand of high-quality java. the company who holds certified java beans and just trade java beans will derive more merchandise distinction advantage.

From 2008. Costa Coffee has started to change over its full java supply to sustainable adult beans4 which was from Rainforest Alliance Certified™ Farms. Besides. in order to implement the Fair Trade. in 2006 the Costa Foundation was set up to back up the java agriculturists lived in Colombia. Guatemala. Uganda and so on5. Through the Costa Foundation. the local people have been provided immense sums of instruction chances and occupation places. Economic During the economic crisis in 2008-2009. the authorities reduced involvement rate and VAT rate in order to hike ingestion and speed up the economic recovery.

In some extent. these policies are helpful to raise the gross revenues since people feel like paying less for the same merchandise. However the high unemployment per centum means that the buying power of purchaser is weak. Peoples cut their budgets on nutrient. fabric. and other non-essential goods. such as java. In 2010. the economic started to retrieve. The VAT rate and involvement rate have been raised in order to increase the authorities gross. And followed the increased VAT rate. the rising prices was higher. As a consequence of these factors. the monetary values of ingredient and goods seem to be higher besides.

Besides for the companies like Costa which involved in the foreign exchange. the decreasing exchange rate of sterling will do the companies’ buying power weaker. Then under this status. Costa tried to concentrate on cost economy and bill of fare alterations to maintain its profitability6. This is a better manner to retain the client with the old monetary value. However. Costa should be cognizant of quality of ingredient and gustatory sensation of new bill of fare merchandises. In my sentiment. Costa could see about cutting operation cost which is a big portion of entire cost. Sociocultural.

The turning population implies a immense potency market for java industry. but it besides means companies need to supply wider scopes of merchandises and services. Besides the lifting figure of educated people will increase the demand for choice java. Furthermore the alteration of attitudes to work and leisure has influence to the java houses. More and more Laptop coevals and white-collar workers prefer java stores as their 2nd office because of its relaxed atmosphere and delightful java. Costa has already found this tendency early and moved its stores into the bookstores.

Under the co-operation of Costa Coffee and bookstores. both of them got the benefits on gross revenues. In add-on. the alteration of life style is besides a factor. Due to the drink driving statute law. the ingestion of intoxicant drink has a immense diminution. Therefore alternatively of traveling to pub. more people are traveling to the java store. Costa achieved a immense success at the societal and cultural communicating with the populace. Since 19717. Costa Book Awards started to better the communicating between readers and authors. Besides Costa encourages everyone to read broad scope of books and do personal remarks. Technological.

It is obvious that high engineering will offer tonss of advantages on efficiency. productiveness. and profitableness to the java brewing universe. Therefore Costa should go on updating the information and upgrading the machine. It will be more effectual on direction if Costa could utilize a new electronic point of sale ( EPOS ) system which was foremost installed by one of the Costa Coffee franchise in 20108. Environmental Company must see more about the environmental concerns in their production procedure. They should utilize sustainable scheme in the long-run. Costa Coffee tried its best to protect environment.

In 2009 Costa started to utilize a figure of Iveco Daily 6. 5-tonne urban bringing trucks which could better the fuel efficiency in its day-to-day delivery9. Furthermore. the Costa java cup could be recycled widely because of the material-certified sustainable mush. However there are still some exposed considerations. Recently Costa Coffee was doubted that it did non esteem another resource of environment – wildlife ( monkeys ) harmonizing to the Television advertising10. Legal Besides run intoing the criterions of Employment jurisprudence. Costa ever keeps working on bettering the wellness and safety of merchandises.

In 2009 Costa Coffee signed up to the Food Standards Agency’s ( FSA ) thrust to supply healthier nutrient outside the home11. Bibliography 1. hypertext transfer protocol: //web. ebscohost. com/bsi/detail? hid=119 & A ; sid=32dbfd46-1818-42af-a533-4401c698ad68 % 40sessionmgr115 & A ; vid=1 & A ; bdata=JnNpdGU9YnNpLWxpdmU % 3d # db=buh & A ; AN=51334551 2. hypertext transfer protocol: //annualreport. whitbread. co. uk/our-businesses/costa. aspx hypertext transfer protocol: //www. independent. co. uk/news/business/news/costa-pays-16336m-for-coffeeheaven-1841930. hypertext markup language 3 “Coalition under force per unit area as Liberal Democrat support plummets” . This is london. co. uk. 2010-08-10. Retrieved 2010-12-28. 4.

hypertext transfer protocol: //web. ebscohost. com/bsi/pdf? hid=104 & A ; sid=f8787208-c016-4737-8de5-c06d1409948e % 40sessionmgr115 & A ; vid=1 5. hypertext transfer protocol: //www. costa. co. uk/foundation/about_the_foundation. aspx 6. hypertext transfer protocol: //web. ebscohost. com/bsi/detail? hid=104 & A ; sid=abf09cc2-10e8-4c10-8465-cddb358de8b2 % 40sessionmgr115 & A ; vid=1 & A ; bdata=JnNpdGU9YnNpLWxpdmU % 3d # db=buh & A ; AN=32148561 7.

hypertext transfer protocol: //www. costabookawards. com/awards/index. aspx 8. hypertext transfer protocol: //web. ebscohost. com/bsi/detail? hid=104 & A ; sid=abaea5da-4a15-4a16-84aa-7b98bfd41ef2 % 40sessionmgr104 & A ; vid=1 & A ; bdata=JnNpdGU9YnNpLWxpdmU % 3d # db=buh & A ; AN=48143126 9http: //web. ebscohost. com/bsi/detail?

hid=104 & A ; sid=7c712796-7eda-4d37-973f-390272857f4f % 40sessionmgr113 & A ; vid=1 & A ; bdata=JnNpdGU9YnNpLWxpdmU % 3d # db=buh & A ; AN=41892470 10. hypertext transfer protocol: //www. defender. co. uk/world/2010/oct/10/costa-coffee-primates-monkey-ad 11. hypertext transfer protocol: //web. ebscohost. com/bsi/detail? hid=104 & A ; sid=6aeda20d-199c-44f5-9f57-b92fa678735c % 40sessionmgr104 & A ; vid=1 & A ; bdata=JnNpdGU9YnNpLWxpdmU % 3d # db=buh & A ; AN=37354743 12. hypertext transfer protocol: //www. usatoday. com/money/industries/food/2009-01-28-starbucks_N. htm 13. P247. Chapter 8 Segmenting Markets. Targeting and Positioning. Extra Reading Material collected from the WBS undergraduate office.