Case Study
Consultancy For Costa Coffee
Case Study
Consultancy For Costa Coffee
Analysing the performance of different formats across Costa's partnerships to find opportunities for further UK expansion.
The Challenge
Costa wanted to better understand the growth opportunity within its UK Partnerships network to achieve key sales, volume and profit targets. The Ideal Network Plan project needed to assess which brands would be the best fit with Costa’s own target audience with an associated network which would offer Costa a substantial commercial opportunity. The project then sought to identify opportunities with existing partners, opportunity with new partners in existing channels and finally opportunity with new partners in new channels, locations and venue types.
The Approach
- A deep understanding of Costa’s portfolio was established, as outlets were classified by format, partner brand and channel type. Each location was assigned to a Retail Centre using GMAP’s RetailVision Destinations.
- Market research and geodemographic data from Kantar Media’s TGI Survey and TransUnion’s CAMEO were combined to describe the Costa customer and subsequently used to measure the consumer fit or similarity of existing and potential partner brands to Costa.
- GMAP gathered data upon an agreed list of potential partner opportunities and collaborated with Costa over the estimation of average weekly spend to build a model that quantified the revenue opportunity considering:
- Formats such as 'store-in-store', 'proud to serve' and 'express' and pre-requisites for the application of each format.
- The level of incremental market coverage provided by the brand, attempting to avoid overlap and cannibalisation of existing custom.
- Outlet attractiveness where smaller stores with fewer customers achieving lower average spend.
- The Consumer Fit.
The Conclusion
GMAP’s analysis offered a prioritised route to Costa that would more than double the weekly revenues generated from the partnerships network. Reviewing the opportunities across retail, leisure and travel channels a realistic objective, converting only 20% of the top opportunities and penetrating across only 25% of those brands’ networks, still offered a substantial 7-figure projected weekly income.
Enquire for GMAP Location Intelligence
Get in touch to find out how our location planning consultancy and location intelligence data and software solutions could support your business.
The Challenge
Costa wanted to better understand the growth opportunity within its UK Partnerships network to achieve key sales, volume and profit targets. The Ideal Network Plan project needed to assess which brands would be the best fit with Costa’s own target audience with an associated network which would offer Costa a substantial commercial opportunity. The project then sought to identify opportunities with existing partners, opportunity with new partners in existing channels and finally opportunity with new partners in new channels, locations and venue types.
The Approach
- A deep understanding of Costa’s portfolio was established, as outlets were classified by format, partner brand and channel type. Each location was assigned to a Retail Centre using GMAP’s RetailVision Destinations.
- Market research and geodemographic data from Kantar Media’s TGI Survey and TransUnion’s CAMEO were combined to describe the Costa customer and subsequently used to measure the consumer fit or similarity of existing and potential partner brands to Costa.
- GMAP gathered data upon an agreed list of potential partner opportunities and collaborated with Costa over the estimation of average weekly spend to build a model that quantified the revenue opportunity considering:
- Formats such as 'store-in-store', 'proud to serve' and 'express' and pre-requisites for the application of each format.
- The level of incremental market coverage provided by the brand, attempting to avoid overlap and cannibalisation of existing custom.
- Outlet attractiveness where smaller stores with fewer customers achieving lower average spend.
- The Consumer Fit.
Enquire for GMAP Location Intelligence
Get in touch to find out how our location planning consultancy and location intelligence data and software solutions could support your business.
The Conclusion
GMAP’s analysis offered a prioritised route to Costa that would more than double the weekly revenues generated from the partnerships network. Reviewing the opportunities across retail, leisure and travel channels a realistic objective, converting only 20% of the top opportunities and penetrating across only 25% of those brands’ networks, still offered a substantial 7-figure projected weekly income.
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