A Comparative Marketing Strategy Analysis Between Starbucks and Caffe Nero

Starbucks portrays it self as a high quality coffee for the high quality and it is priced a little greater than the coffee of Caffe Nero. It remains true to its American creativity and emphasizes exclusively on its number of coffee products with just a few snacks and sweets. After that, Starbucks differentiates it self off their cafes by giving an extremely comfortable atmosphere with facilities like Wi-Fi so their customers can enjoy browsing the web while consuming their particular coffee.

However Caffe Nero emphasizes on its Italian combination and portrays it self as not only a café but additionally a club and restaurant. It offers quite a thorough selection with a variety of well-known Italian meals. Due to this many people visit Caffe Nero having dishes rather than just a cup of coffee. They’ve brought a pure European vibe for their cafes hence staying true for their creativity. For the ease of their customers also to increase their particular attracting they usually have also launched respect cards.

ONLINE STRATEGY:

Advertising and marketing methods assist organizations in promoting their products and solutions in a certain way that they want to. While cashing on their main points they attempt to produce an image of their brand within the thoughts of their target clients so as to achieve their particular target sales and a good share of the market. Advertising and marketing methods assist organizations in gaining an aggressive advantage by catering to those specific niches that other people fail to recognize. Advertising and marketing methods created by organizations vary in timeframe in one 12 months intends to those extending more than a long time. Lots of elements tend to be considered whenever creating advertising plans and methods that are defined by the environment within that your organization works. This might be usually called a SWOT (strengths, weaknesses, options, threats) analysis which helps organizations in pinpointing areas that they usually takes benefit of additionally the places that they must be careful of.

The most important factor that any company has to take into account, when designing its advertising methods is its rivals. Rivals’ activities have a massive effect on just what an organization have to do. Inside coffee chain business these day there are many independent coffee stores in UNITED KINGDOM such as the best Starbucks, Monmouth Coffee, Coffee Aroma, The Apple Tree and Caffe Nero. Within assignment the advertising methods of both Starbucks and Caffe Nero will undoubtedly be reviewed and a crucial analysis will undoubtedly be provided associated with both.

STARBUCKS

1st Starbucks outlet ended up being established in Seattle more than thirty years back. These days Starbucks proudly appears at $4.1 billion with countless outlets not just in the United States but all over the world. A lot of companies have studied the secrets and methods used by Starbucks so as to learn how Starbucks expanded so fast. The advertising methods being used by Starbucks at present will undoubtedly be talked about within assignment (voteforus.com 2011).

Unique online strategy:

The online strategy used by Starbucks features remained unconventional. They did not follow the normal varieties of ad making use of billboards, newspaper advertisements or tv commercials. Rather they relied on word – of – mouth to advertise their particular brand.

Item high quality:

The crucial thing that Starbucks never ever destroyed control over may be the top-notch their particular espresso beans. These were initial ones to present the actual Italian “burnt espresso” flavor into the People in america. They justify their particular high quality by charging a slightly greater price than other cafes.

Comfortable environment:

Another focus of Starbucks outlets may be the environment they offer inside their cafes for his or her clients. Starbucks happens to be marketed as that perfect destination to flake out whenever away from residence and out of the office. They’ve begun providing Wi-Fi connection inside their outlets in order for their customers can see the internet and while they enjoy their particular sit down elsewhere.

Client satisfaction:

Client satisfaction may be the best positive point of Starbucks. Each client that comes into a Starbucks outlet is provided these types of a particular therapy they truly feel like they’re in a particular location.

The Starbucks community:

Starbucks features truly taken full benefit of modern buzz of social media marketing. They’ve used their particular most recent advertising methods around social media marketing internet sites like generating lover pages on Facebook and Twitter where they really react to all clients and keep in touch by posting images, videos and all modern marketing information.

Development:

Starbucks features always kept its selection fresh by continuously coming up with brand new products and different combinations and tastes inside their coffee. Several of their particular most recent struck products being the Green Tea Latte considering the health aware consumers with iced-tea and Frappuccino for his or her outlets in hotter climates.

Brand Advertising:

Starbucks features always portrayed it self as a high quality item and so decided to depend on word – of – mouth marketing only. This served to-be a quite of use online strategy as comparison to choosing marketing advertisements in mags, magazines, billboards etc. They’ve recently started using the social media marketing internet sites within the best manner ever. Their particular Facebook and Twitter pages have shown quite useful in advertising the image of Starbucks while also enabling all of them having direct interaction with their customers on one platform

CAFFE NERO:

In accordance with chairman of Caffe Nero, Gerry Ford (2008), Caffe Nero Group Ltd is ‘the largest independent coffee retailer in UK, with over 400 stores within the UK’. It had been started around 1977 and today has its own outlets available offshore and in Turkey and center East. They distinguish themselves off their café’s in UNITED KINGDOM by emphasizing in the undeniable fact that they’re an Italian Coffee Company. Their particular primary goal, as in the language of Gerry Ford (2008), ‘is to give you a European design coffee-house experience providing advanced espresso – based gourmet coffee, authentic Italian foods and a calming atmosphere in most store’.

Caffe Nero happens to be provided numerous awards for the high quality coffee over the years and its outstanding experience they deliver inside their stores. Tatler features rated Caffe Nero as ‘The Greatest espresso this part of Milan while Egon Ronay features labeled it as “The Traditional Italian Café”. Caffe Nero has additionally been because of the label by UNITED KINGDOM consumers as “top UNITED KINGDOM Coffee House” in nine consecutive years (Allegra Report, the united kingdom’s definitive guide for the coffee business).

CAFFE NERO’S USP:

The Caffe Nero’s online strategy mostly increased exposure of its unique feature which can be a pure Italian theme. Caffe Nero portrays its self from more than simply a café. Rather it’s created a perfect blend of a café cum bar and restaurant. For that reason Caffe Nero isn’t restricted to only providing a location for coffee-and snacks rather you can get there just to enjoy a meal. They’ve an array of exquisite sweets with numerous Italian meals such as the Italian wraps, soups, snacks, spaghetti and paninis.

CAFFE NERO’S TARGET AUDIENCE

Caffe Nero mainly targets tourists in UNITED KINGDOM and/or Italians searching for their particular Italian taste in cuisine. They are focusing on the center – earnings group who are middle – elderly, students or people whom choose to visit a café during their lunch breaks. In addition, Caffe Nero features created a partnership using famous chain store, home of Fraser, because which around 145 cafes opened, many of which had been located within home of Fraser stores (James, Situation review associated with Caffe Nero Group Ltd – Festive City

Critical Testing Between the Two Businesses

Now that a basic analysis happens to be provided in the advertising methods getting used by both Starbucks and Caffe Nero, an analysis will undoubtedly be done on what differentiates all of them from each other.

  • Caffe Nero and Starbucks tend to be direct rivals but Caffe Nero differentiates it self from Starbucks by offering cheaper coffee than Starbucks.
  • Caffe Nero provides a larger variety of food items with its coffee drinks which makes it sit besides Starbucks which doesn’t have these types of an array of assortments.
  • Caffe Nero adopts a stronger brand positioning by emphasizing on its European – design coffee shop in comparison with Starbucks which can be of American source. Caffe Nero features a distinctive feature which emphasizes in the cafes continental – design whereas Starbucks is of American design.
  • Starbucks features effectively established countless outlets international plus in the intercontinental market whereas Caffe Nero still does not have in intercontinental expertise and contains just recently unsealed its stores in Turkey additionally the center East.
  • Starbucks features many outlets throughout UNITED KINGDOM whereas Caffe Nero doesn’t have sufficient outlets in Central London.
  • Caffe Nero features a lot of potential of developing as it enjoys numerous unique attempting to sell points like its pure European authenticity.

Sources

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

2. Voteforus.com (March 29, 2011) Starbucks Triumph Will It Be’s Word Of Mouth/Social Media/Viral Online Strategy

3. James, S, Situation review associated with Caffe Nero Group Ltd – Festive City

4. VoteforUs.com Starbucks Online Strategy Unconventionally Effective

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

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



Resource by Steve M Jones