Write 6 pages with APA style on Comparative Analysis: Caffe Nero and Costa Coffee Top Shop.

Write 6 pages with APA style on Comparative Analysis: Caffe Nero and Costa Coffee Top Shop. Caffe Nero and Costa Coffee Top Shop European beverage ventures have had the need to analyze the market strategically and incorporate strategic policies to promote high competitiveness and maintaining market position.

Market strategies are implemented in business with the aim of obtaining a competitive advantage over other firms in the same field of production (Arnold, Chadraba, and Springer, 2006). The strategies are either long-term or short-term depending on the market evaluation and trends. Most companies utilize marketing strategies to attain the set market and business objectives. Caffe Nero and Costa Coffee Top Shop coffee have integrated various marketing strategies to come up with a perfect market mix, which is based on the market size and consists of four principles namely the price, product, promotion, and place.

The price includes the value of the product that has a major contribution to the size of the market. The two coffeehouses have made sure that their products have been priced according to the right standard in the European market. The price also varies depending on the market segment due to various variables. For example, Costa Coffee has more branches globally and sells its coffee at strategic prices due to the differences in production costs. Additionally, the product price directly affects the sales revenue compared to the other marketing mix principles that incur the company costs. The success of the coffeehouses in the European market depends on the level of research on consumer taste and preferences (Richter, 2012). For example, one shop may sell its products at a higher price and still get more customers than the other selling at lower prices. The reason behind the differences in the price as the principle of the marketing mix. Additionally, differences in the price of products may cause variations depending on the market structure. For example, American coffee companies may infiltrate the European market by coming up with price policies that suit the customers in the current market. The customer has to be price sensitive for the strategy to work. The European coffee market is based on a customer-loyalty basis because most of the coffeehouses have been in operation since the early 1970s. Subsequently, international companies may find it difficult to make new entries into the market.

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