The Marketing Strategies Used in Caffe Nero in Loughborough - Case Study Example

The marketing strategies used in Caffe Nero in Loughborough Caffe Nero based in Loughborough is well known for the production of beverages and other foods to all people regardless of age. However, its key product is coffee. This is evidenced by the seriousness it takes in making coffee than other brands of drinks. For instance, it invests substantial resources and time towards production of coffee. It also portrays much passion and enthusiasm towards producing a range of espresso based coffee that is at the heart of their brands (The Perfect Espresso 2014). Additionally, Caffe Nero uses a unique Italian style blend composed of diverse beans in meeting its production objectives. The sweet test of its coffee is also enhanced by the roasting of the beans to its own specifications. To meet the desired quality of coffee, “Caffe Nero use double shots of espresso in their usual and grande size drinks in making coffee” (The Perfect Espresso 2014). Its long production steps lead to the formation of the final product that is not only sophisticated and rich in flavor, but also bold and vivid. Additionally, “its final product maintains good coffee flavor even when mixed with much milk” (The Perfect Espresso 2014). Most people that visit Caffe Nero prefer taking espresso to other beverages. Their love for this product is based on its thickness, smoothness and attractive golden colored cream at its top. Additionally, its unforgettable aroma and a sweet taste that lasts for many minutes make it satisfying and appealing to the clients. In addition to the Caffe Nero traditionally handcrafting its espresso, it also makes it in a classic Italian way. Unlike Caffe Nero, the Costa makes diverse brands of coffee for its customers from a unique Mocha Italia blend that is not handcrafted (Costa for Coffee Lovers 2014). Just like the Caffe Nero and the Costa Coffee, MacDonalds also makes diverse coffee products similar to those made by the Caffe Nero from Arabica beans. Unfortunately, all these cafes produce almost similar products because of using almost similar ingredients and ways in making their beverages. For instance, the espresso made by all these cafes does not contain milk. In addition to making espresso, Caffe Nero also makes other iced coffee based drinks. For instance, it is known of making Classic Frappe Latte, a most loved iced coffee drink. In making Classic Frappe Latte, the Caffe Nero blends espresso, milk, ice, and a mixture of special frappe. The produced product after blending is loved by most customers for not only being creamy and smooth, but also having a refreshing test. The low fat content in the product also increases its demand among consumers. Mocha Frappe Latte is also one of the iced coffee drinks made by Caffe Nero. It is very identical to the Classic Frappe Latte. To differentiate the two, the Caffe Nero adds chocolate powder to the handcrafted espresso together with milk, ice and a mixture of frappe. Its smoothness and chocolate test makes many people prefer it to other drinks. Caffe Nero also makes Iced Latte by mixing espresso coffee, milk, traces of sweetness, and ice cubes without blending. In addition, Caffe Nero also makes diverse Iced Latte syrups and provides them to its clients as free sugar. Just like Caffe Nero, the Costa also makes ice cold Costa (The Perfect Espresso 2014). However, its ice products are not as many as those made by the Caffe Nero. Additionally, the Costa does not attract many customers like the Caffe Nero because of its inability to provide its customers with ice syrups. The Costa Coffee as well as the MacDonals and Caffe Nero make Iced Coffee (Iced Americano) for their clients. However, the ingredients used by these cafes it differ slightly; unlike Caffe Nero, that makes Iced Coffee by mixing espresso coffee with ice and water, the Costa uses a wide range of flavors in making the Iced Coffee. For instance, it uses Latte, Cappuccino and Mocha depending on the taste of the customers. Caffe Nero and the Costa are also known of making indulgent iced drinks. However, their iced drinks differ slightly. For instance, the Caffe Nero makes Frappe Crème from ingredients such as caramel sauce, strawberry, vanilla, and bananas with whip cream topping whereas the Costa makes Creamy Coolers from either strawberry, cream, vanilla, or caramel, with different toppings. Unlike the Costa, Caffe Nero makes fruit boosters and Frappe Milkshakes from coffee products. Its fruit boosters are thirst quenching and approximately 99% free of fats. In making them, it blends ice with Fruit Boosters only. On the other hand, Caffe Nero makes Frappe Milkshakes from blending French syrups with milk and other special frappe mixtures. To compete effectively with the Caffe Nero, the Costa also makes other drinks apart from coffee. For instance, it makes tea for all tastes, including Earl Grey and Green Tea. It also makes English Breakfast, Peppermint and Camomile. The Costa is also known of making hot chocolate, Speciality Latte, and Chai Latte. Apart from making coffee drinks, the Caffe Nero, the MacDonalds and the Costa Coffee make other types of foods. However, the Caffe Neros criteria of making the foods correlate that of the Italian and Mediterranean. This is evidenced by their love for making simple foods just like the Italians. Their diverse foods are made by not only experienced chefs, but also experts in food making. One of its renowned chefs is the Italian by name Ursula Ferrigno. Ferrigno plays a significant role towards its success; “he assists in developing admirable unique recipes that are exclusive to Caffe Nero” (The Perfect Espresso 2014). The Caffe Nero as well as the MacDonalds and the Costa Coffee also believe in producing quality, attractive, and artisan foods. However, the Caffe Nero looks for best ingredients and develops favorite and trusted recipes. “Its food range has a close relation with that of a deli; serves handmade sandwiches, traditional soups, salads, fresh pastries and delicious cakes” (The Perfect Espresso 2014). Just like the Caffe Nero, the Costa and the MacDonalds also make diverse foods that can be consumed together with their drinks (Horovitz 2014). For instance, they make cakes, sandwiches, hot sandwiches, wraps, pastries, snacks, and bakery. They also make hot and cold salads and fresh fruit salads. Unlike the Costa and the Caffe Nero, the MacDonalds cook chicken and fish. It is through the cooking of diverse meals that the MacDonalds manages to snatch the Caffe Nero some of the customers. In addition to stiff competition in food making, the Caffe Nero also loses some of its clients to its competitors such as the Costa and the MacDonalds because of its inability in delivering services to individuals who cannot access their stores. However, the Caffe Nero auto-competes them by providing a healthy eating habit and catering to its clients in order to maintain the physical fitness of its clients. Additionally, it ensures that all its products are not only free from genetic modifications, but also from hydrogenated fats. In making food products, Caffe Nero ensures that it has used the right balance of ingredients along avoiding using artificial flavors and colors. The Caffe Nero also tries as much as possible to regulate the amount of salt it uses in the making its foods in order to keep in touch with the clients that suffer from diseases such as diabetes. The unique features that make many customers prefer Caffe Nero to its competitors include their classic Italian cafes. Its coffee house atmosphere has a continental feel along being cosy. Its environment is also good for chatting, eating, relaxing or reading newspapers. “Caffe Nero also retains the historic features of buildings and their classical architectural features such as arches, columns and cast iron staircases in order to attract and maintain many customers” (The Perfect Espresso 2014). In addition to having a classic mahogany back bar which resembles classic bars in Southern Italy, Caffe Nero buildings have large open windows positioned towards the street. The buildings have also high tables and chairs to enhance the clients to have a watch of what takes place in the world. All cafes in the Caffe Nero are differentiated from each other by not only use of store design, but also the incorporation with local features. The use of local features also makes the cafes resemble the community in which they are built. Additionally, the use of the reclaimed and sustained materials in building new stores and wood floors by the Caffe Nero aids significantly in the attraction of many customers. The attractive appearance of some cafes in the Caffe Nero is also enhanced by the presence of the original parquet floors as the ones in the Bank of England. The prices of the coffee and the foods in the Macdonald, the Costa, and the Caffe Nero vary slightly. For instance, the price of a large serving of Americano is 2.45, 2.40, and 2.40 in the MacDonalds, the Costa Coffee, and the Caffe Nero respectively (Handford 2014). However, the price of a large serving of a Cappucino is highest in the MacDonalds (2.85), and lowest in the Costa Coffee (2.65). In the Caffe Nero, Cappucinno’s price is 2.70 pounds (Handford 2014). The slight variation in prices among these cafes contributes significantly to an increase in competition, in selling of foods and coffee. To keep in touch with many customers, Caffe Nero gives free internet services in form of WiFi alongside meal vouchers as added incentives to its customers. Just like the Caffe Nero, the Costa Coffee also uses technology in attracting and retaining its customers. It offers promotions to its clients via use of mails. However, the promotions strategies used by the MacDonalds are slightly different from the ones used by the Costa Coffee and the Caffe Nero. For instance, it issues coupons for slow moving combos alongside introducing new products such as Twister fries. MacDonalds also collaborates with renowned companies such as Coca-Cola so as to attract many customers. Both the Caffe Nero and the MacDonalds are within the center of Loughborough. However, the Caffe Nero is located on one of the recognized high streets in Loughborough. On the other hand, the Costa Coffee consists of many stores that are located in different streets. Bibliography Handford, B 2014, Prices London Coffee Shop Chains 2014- Starbucks, Costa, Caffee Nero, viewed 24 April 2014, < http://www.londontoolkit.com/blog/eats/coffee-shop-chains-in-london/> Horovitz, B 2014, McDonalds looking to heat up US sales with breakfast, coffee 2014, viewed on 24 April 2014, < http://www.cnbc.com/id/10001168> The Perfect Espresso 2014, viewed 24 April 2014, < http://www.caffenero.com/default.aspx> MacDonalds 2014, viewed 24 April 2014, < https://www.mcdonalds.com.sg/our-story/company-info/profile/> Costa for Coffee Lovers 2014, viewed 24 April 2014, < http://www.costacoffee.ae/costa-coffee/the-costa-way/> Read More