Marketing Analyse : UK coffee shop - Essay Example

Some of the major shops include Starbucks, Mc Café, Dunkin Donuts Coffee, Costa and Café Nero (Edwards, 2013; Thomson & Shah, 2006; Herve, 2004; Irina, 2000). The coffee shop industry is expected to continue with the current growth and expansion. According to Wright (2000), the industry is shaped by several factors and forces which include specialty products for the middle income earners, industrialization, innovation, available substitutes and affordability of the products. The industry can be well explored and understood with the use of PESTLE analysis.

This is an analysis tool that looks into the industry’s political, economic, social, legal and environmental issues which may affect who it operates (Wright, 2007). One of the major political issues which shape the sector is the International Coffee Agreement, which limits the amount of coffee exportation. Kiechel (2010) remarks that price fluctuations and political instability in the coffee producing countries also influence buying and production trends. Inflation has affected the coffee prices leading to reduced sales.

Financial trends and recession force consumers to set priorities which it comes to what they buy with money being reserved for the most important needs thus affecting the sales (Fruhan, 2007). Slow economic growth in some regions has also resulted in low spending on coffee. Brand image of companies determine the perception that the consumers have about it (Calkins, 2010). Consumers tend to visit and patronize the coffee shops which they deem fitting to their social classes. Mc Café for example associated with high social class.

Major coffee shops in the UK have adopted and relied on technology to improve the quality of the services offered. This has in turn led to increased efficiency. Technology is also being used to innovate new products and means of delivery (Auch-Roy, 2004). Environmental pollution and waste management regulations influence the operations in the coffee shop