The global marketing is more than selling products internationally. It comprises the complete process of planning, producing, placing and promoting products of the company in the global market. It is of a great importance to the company looking for the international expansion. The global marketing is significant for the products having universal demand. This report is all about the global marketing management of Costa. Costa is an international coffeehouse company. It is the largest and rapid growing coffee shop based in UK. Costa was established in 1971 in London. Costa was acquired by the White bread in 1995. Later on it was sold to the Coca-Cola in 1995. This report comprises the relationship between advertising, branding and customer loyalty of Costa.

The tools and techniques to evaluate global marketing problems comprise the following under the theoretical concepts of marketing.

Consumer barometer: The consumer barometer provides several questions in regard to products liked by the customers and the options preferred by them. It is the efficient tool to evaluate the global marketing problem. Costa can get response of each question by filtering responses by country, product categories, demographics and internet usage. The consumer barometer leads to the advertisement. The advertising has role in influencing customers in buying products. Furthermore, it leads to the customer loyalty. Advertising is described as a marketing communication persuades several effects on the brand equity. Add on, branding also works as advertising as it has a great role in developing good business practice and customer loyalty.

Sustainability map: The sustainability map is an efficient global marketing tool which can be used by Costa.  It deploys better sustainability practices in the international trade. The sustainability maps offer online access for the wide range of information concerning standards, sustainability initiatives and trends. It often leads to the practice of calling attention of people to a good idea. It is more of a part of the advertisement and promotes ideas, products and services of the company. It is a one way communication and an effective tool for the promotion. It encourages to the customers.  Add on, branding has role in elevating the offerings of the company. The branding helps to get potential customers who remain loyal to the products of the company. On the other side, the customer loyalty is positively associated with the customer satisfaction. The satisfied customers do not easily change their preference over the brands. It is the consistent effort of the company to deliver the same products. The customer loyalty states to the consumer’s devotion towards the company (Beck, Chapman and Palmatier, 2015).

Understanding target market: Having understanding of the target market is an efficient way to evaluate the global marketing problems. It is a better way to conduct consumer research, culture and marketing data of a country. The advertisement of the concerning products have even role in understanding the global market. The advertisement is more of a paid communication message envisioned to inform and influence people to buy something. The branding encourages people to buy products by communicating the values, attributes and characteristics (Cavusgil and Knight, 2015). It even leads to the transparent communication along with the honesty which ultimately leads to the customer loyalty. The customer loyalty lies in the company’s ability to brand the requisite of the products.

Get the language right: The appropriate use of the language has role in targeting the market. Costa is required to opt for the local language where it wants to conduct operations. The advertisements of the domestic country has significant role in influencing customers. The advertising has certain effects on the brand loyalty. It is a long term investment for attaining good business performance (Agarwal and Wu, 2018). The branding is even considered as a part of advertising used to establish connections and build long term relationships with the customers. On the other side, advertising leads to the purchase. The repeating purchase has role in developing customer loyalty (Frynas and Mellahi, 2015).

The national and international macro environmental factors are important in the global marketing strategy. There is no country which can survive in the complete isolation. The macro-environmental factors consist of different political systems, economic systems and emerging global market.

Different political systems: The businesses have to conduct operations within the rules of the law. Every country has separate political system which affects the functions of the business. Every country runs different advertisement as per allowed content. It is all about companies want to communicate (Agarwal and Wu, 2018). Along with this, branding is a marketing practice used by the companies by creating a name or logo which is easily identifiable. It helps to distinguish products of the company. The branding strategy creates a strong brand identity for the company and establishes credibility with the customers. The advertisement is used by Costa to signify the success of the company. Seven out of ten people prefer to have coffee at Costa. The campaign featuring “For Coffee Lovers” advertises products of the company along with creating branding.

Economic systems: Different countries have different economic structure and economic systems. The free market system is a best offering for the company to be succeeded. The advertisements used by the companies in creating more of positive expectation which makes the experience of the product use positive.  The advertisements have significant part in generating consumer reactions and causes purchase repetition along with the brand loyalty. The customer loyalty is vital for the business success. A loyal customer has role in increasing profitability with the low costs.

Emerging global market: The major changes are faced in the economy and global markets. The laws of emerging countries favour the companies in the form of taxation and setting up business. Such relaxation is even advertised by the countries. Costa can easily conduct operations in the emerging countries. Costa can advertise its products and make use of the branding. The branding has continual influence over the advertising. It creates positive association between the company and products. Branding comprises name, tagline, logo, colour, message and feelings (De Mooij, 2018). It helps to differentiate a company and align its business image. The customer loyaty is influenced by the satisfaction with the brand accumulated over the time. Retaining existing customers has 4 to 6 times lower cost in developing new customers.

Integrated global product marketing strategy: Most of the elements of the marketing strategy are globalized in the integrated marketing strategy. This strategy is suitable for the companies having globalized customers. it covers all the elements of the marketing program such as segmentation, positioning, branding, distribution, bottling, advertising and more. It is helpful in gaining competitive advantage.

Global segment strategy: Costa can use this strategy to target same segment in various countries. It develops understanding of the customer base and leverages the experience. It allows different brands, products or advertising along with some standardization. The choices comprise to compete in a better way (Villeneuve and Pasquier, 2017).

Global marketing strategies: It comprise of using same brand name and logo globally. It requires a considerable amount for the marketing investment. This strategy is advisable when the target customers travel across boundaries and exposed to the products somewhere else.

Global advertising strategy: This strategy is linked with the use of same brand across globe. The companies can even make use of different brand names partly in different countries. The companies can even made acquisitions to result in a number of local brands. This strategy is most advisable when the company way market to customers seeking for the similar benefits across globe (Lasserre, 2017).

Costa is advisable to use global advertising strategy for the global marketing. The company can make use of advertising to promote itself in the host country. The advertisement affects expectations from products so its role is associated with the brand loyalty. People sharing love for coffee over the advertisement creates a sense of customer loyalty along with the branding (Heding, Knudtzen and Bjerre, 2015). Costa uses logo on the products sold by them which provides consistent image to the company and leaves a mark that makes it especially Costa. The tagline has also role in branding such as “Coffee lovers, prefer Costa”. It has role in branding along with the advertising. It gives a sense of recognition to the company. Costa uses burgundy red and white colour in all the products packaging. Such colours create a warm and appeal to the customers. The wood panel décor, warm yellow lighting, comfortable seats and smell of coffee contributes in the memorable experience of the customers (Kasemsap, 2018).

Costa even uses loyalty programme to induce customers stay with them (Knight and Liesch, 2016). The company offers 5 points for every £1 spent in the store. Each point values a penny to spend in the store liked by the customers. The points lead to 5% discount per coffee. It delivers customers the best value for the money. The company is even able to capture customer data and install greater levels of personalisation in offers and communications to the customers. It can act as a strong influencing factor in creating a relationship then just offering discounts on the coffees.  Add on, 5% of the customers drive 46% transactions of the company. The loyalty program sets Costa apart from others because of the response rate attained from the active users. The company communicates twice a month through email but it results in generating higher levels of engagement. The loyal customers advertise the products in the better way (Kotler, et al. 2015).

Costa can make use of various tools to evaluate global marketing problem. Consumer barometer, sustainability map, understanding target market and getting language right are the effective tools to be used by the company. The national and international macro-economic factors comprise different political systems, economic systems and emerging global market. Costa is recommended to use global marketing strategy to seek similar benefits across teh globe. Costa focuses more on the loyalty programmes as it creates customer loyalty. The customer loyalty has role in the advertisement and creates a sense of branding. The advertisement done by the company leads to the branding and the branding is associated with the customer loyalty. The advertisement along with the branding contributes to the increasingly strong performance of Costa.

References 

Agarwal, J. and Wu, T. eds., 2018. Emerging Issues in Global Marketing: A Shifting Paradigm. Springer.

Agarwal, J. and Wu, T., 2018. The Changing Nature of Global Marketing: A New Perspective. In Emerging Issues in Global Marketing (pp. 3-11). Springer, Cham.

Beck, J.T., Chapman, K. and Palmatier, R.W., 2015. Understanding relationship marketing and loyalty program effectiveness in global markets. Journal of International Marketing, 23(3), pp.1-21.

Cavusgil, S.T. and Knight, G., 2015. The born global firm: An entrepreneurial and capabilities perspective on early and rapid internationalization. Journal of International Business Studies, 46(1), pp.3-16.

De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes. SAGE Publications Limited.

Frynas, J.G. and Mellahi, K., 2015. Global strategic management. Oxford University Press, USA.

Heding, T., Knudtzen, C.F. and Bjerre, M., 2015. Brand management: Research, theory and practice. Routledge.

Kasemsap, K., 2018. The roles of social media marketing and brand management in global marketing. In Social Media Marketing: Breakthroughs in Research and Practice (pp. 425-453). IGI Global.

Knight, G.A. and Liesch, P.W., 2016. Internationalization: From incremental to born global. Journal of World Business, 51(1), pp.93-102.

Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G., 2015. Marketing. Pearson Higher Education AU.

Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.

Villeneuve, J.P. and Pasquier, M., 2017. Marketing management and communications in the public sector. Routledge.