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Marketing Strategies of Cafe Nero and Starbucks Essay

Starbucks is an international coffee company that is based in Seattle, Washington. It is known as ‘’Sbux’’ in the NASDAQ stock market. Starbucks is considered to be the largest coffee company in the world, due to having $10. 7billion revenues in 2010 and having 16,850 shops in 40 countries (Lepore 2011). It mainly focuses on selling drip brewed coffee, espresso hot drinks, sandwiches, pastries, salads…. etc.

In 1999, Starbucks experimented with a restaurant which was opened in the San Francisco Bay area which was called ‘’Circadia’’ (Tice 1999). Cafe Nero is another coffee company. It is an Italian style coffee shop that happens to be based in the United Kingdom. It follows the standard tradition of coffee houses worldwide, by selling espressos, iced lattes and sandwiches. However, it does have a distinctive menu in comparison with other coffee houses.

It sells iced fruit drinks which are called ‘’fruit boosters’’, in addition to iced milkshakes which are known as ‘’frappe- milkshakes’’. Cafe Nero has a scheme of attracting customers by using a reward scheme for customers. Whenever a coffee has been purchased, a customer’s loyalty card gets stamped with a Cafe Nero logo stamp, and once the loyalty card has nine stamps, the

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customer is entitled to a free drink of his choice.

It is stated by the chairman and CEO of Cafe Nero: Gerry Ford that the company wanted notice its customers and keep track of the loyal customers, therefore the loyalty card scheme was introduced since the initiation of Cafe Nero and it has not changed (Hancock 2007). This essay aims to discuss the marketing strategies of both companies, Starbucks and Cafe Nero and provide a critical analysis of the marketing strategies given for both companies, and finally a conclusion will be drawn.

Businesses can learn from each other, especially if those particular businesses have demonstrated outstanding success over the years. Starbucks’ marketing strategies are considered to be examples of tremendous success. According to the ‘’Business Journal’’ (author unknown, 2012), it is claimed that Starbucks is the most socially engaged company in the United States. Different businesses would aim to learn from these marketing strategies in order to gain a competitive advantage in the future.

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