COSTA COFFEE
MARKET RESEARCH & STORE SEGMENTATION
The Brief
Serendipity 2 (S2) was tasked by Costa and Coca-Cola European Partners (now Coca-Cola Europacific Partners) to undertake desk and on-site research in order to provide a report on the UK coffee marketplace and the soft drinks range opportunity. Specific focus required a better understanding of the changing nature of the marketplace by looking at Costa’s competition including national chains and leading independents and how consumer choice and behaviour effect buying decisions.
Our Approach
Desk and onsite visitor research were used focusing on the changing nature of the coffee marketplace; exploring trends in consumption, flavour and innovation, food combinations, Costa’s competitor chains and growth opportunities.
S2 then developed a store segmentation model examining each outlet’s location and daytime footfall opportunity, which includes both residents and the population pulled into an area during working hours. Location is a key factor in urban areas as footfall opportunity is heavily influenced by proximity drivers such as transport links, universities, sports venues and competition. Recommendations for premiumand nonpremiumranging by site and consumer occasion type was created around outlets with similar potential, based on the external demographics of daytime population, affluence and household composition. CCEP and Costa needed accurate, store-level information that relates to local shoppers and consumers, recognising external factors that can affect purchasing behaviour and store performance.
The Result
S2 provided a detailed report into the coffee marketplace, covering consumer attitudes, trends and competitor activity together with a store segmentation aligning soft drinks ranging within different types of coffee shops and consumption opportunities. A detailed understanding of the marketplace and the ability to analyse and define activity which is relevant and highly targeted for each store, shifts ranging and promotional activity away from a generic approach. Costa is now owned by The Coca-Cola Company.
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