Costa Coffee SWOT Analysis, Competitors & USP

Published by MBA Skool Team, Last Updated: September 14, 2021

SWOT analysis of Costa Coffee analyses the brand by its strengths, weaknesses, opportunities & threats. In Costa Coffee SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Costa Coffee to benchmark its business & performance as compared to the competitors. Costa Coffee is one of the leading brands in the food & beverages sector.

The table below lists the Costa Coffee SWOT (Strengths, Weaknesses, Opportunities, Threats), top Costa Coffee competitors and includes its target market, segmentation, positioning & Unique Selling Proposition (USP).

Costa Coffee SWOT Analysis, Competitors, Segmentation, Target Market, Positioning, USP & Brand Analysis Table
Costa Coffee Brand Analysis
Parent Company

Coca Cola Company

Category

Coffee joints

Sector

Food & Beverages

Tagline/ Slogan

We make it better

USP

Popular British coffee brand now going global with innovative products

Costa Coffee STP
Segment

People looking to go to have a coffee and snacks at a hangout place

Target Group

Youth in the middle and higher income groups

Positioning

The best coffee maker in the business

SWOT Analysis of Costa Coffee
Costa Coffee Strengths

Below are the Strengths in the SWOT Analysis of Costa Coffee:

1. Costa Coffee is one of the leading coffee chain brands based out of UK

2. Costa coffee is present at more than 3000 locations worldwide

3. The company has a strong legacy since it was started in the year 1971

4. In 2019, the Coca Cola company had acquired the Costa Coffee company for $5 billion

5. The coffee chain offers a wide variety of products including coffee, milk shakes, cakes, sandwiches etc.

6. As a part of its product extension, Costa coffee started offering canned coffee which is available at several retail stores

7. The annual revenue of the brand is more than $1 billion

Costa Coffee Weaknesses

Here are the weaknesses in the Costa Coffee SWOT Analysis:

1. Costa Coffee is present in a limited number of countries as compared to some of its global competitors

2. Limited marker share growth owing to many substitutes available from competitors to local players at every location

Costa Coffee Opportunities

Following are the Opportunities in Costa Coffee SWOT Analysis:

1. Acquisitions or forming strategic alliances with other coffee companies can help boost the business for Costa Coffee

2. Expanding in various consumer markets with a higher youth population who has a high purchasing power can be an opportunity for the company

3. Continuously expanding its menu and offer snacks & beverages based on local interests can attract a new set of customers

Costa Coffee Threats

The threats in the SWOT Analysis of Costa Coffee are as mentioned:

1. The company has a threat from existing coffee chains and fast food outlets

2. Intense price competition means lesser margins and higher operating costs for Costa Coffee

3. Economic recessions or a pandemic can hurt the business as people reduce their expenditure

Costa Coffee Competition
Costa Coffee Competitors

Below are the top 6 competitors of Costa Coffee:

1. Starbucks

2. McDonald's

3. Dunkin Donuts

4. Cafe Coffee Day

5. Barista Lavazza

6. Mochas


This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Similar analysis has also been done for the competitors of the company belonging to the same category, sector or industry. Browse marketing analysis of more brands and companies similar to Costa Coffee. This section covers SWOT Analysis, Competitors, Segmentation, Target Market, Positioning & USP of more than 2500 brands from over 20 industry sectors.

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