Marketing Behind Costa Coffee's Success

Have you ever noticed how a simple cup of coffee can bring people together?

Think about it. Coffee marks the beginning of great conversations, a comforting break in a busy day, or even a quiet companion to your creative moments.

Costa Coffee understands this better than anyone. What started as a small roastery in London grew into one of the most loved coffee brands in the world.

And they didn’t do it by chance. Costa tapped into something deeper - the rituals, habits, and little joys that make coffee a part of life.

Okay, all coffee brands do it but how did Costa Coffee become so popular?

What did it do to have so many fans across the world?

Let's see!

Costa Coffee’s change from a small London roastery to one of the world’s largest coffee chains highlights its journey of strategic growth, innovation, and consumer connection.

Founded in 1971 by Italian brothers Bruno and Sergio Costa, the brand began with a simple mission: to create high-quality coffee blends that customers love. Over the years, Costa has stayed true to its roots while evolving to meet modern consumer preferences.

With over 4,000 outlets globally, Costa Coffee is now the world’s second-largest coffee chain. It leads the UK market with approximately 2,500 stores and has a growing presence in markets like China and India.

Check out this interview with the global CEO of Costa Coffee about launching in India:

Known for its premium coffee, professional barista service, and ethical sourcing, Costa has built a brand synonymous with quality and consistency.

Marketing Strategy Analysis

» Brand Positioning

Costa Coffee positions itself as a premium but approachable coffee brand. The tagline Coffee perfection since 1971 is a promise and more than a catchy phrase.

By emphasizing high-quality coffee brewed by expert baristas, Costa targets customers who want a touch of sophistication in their daily brew without feeling priced out.

And according to its target audience liking, every Costa Coffee store radiates warmth and modernity. Walking into a Costa feels like stepping into a place that’s not just about coffee - it’s about the experience.

Comfortable seating, free Wi-Fi, and a welcoming vibe ensure customers stick around longer, turning coffee drinking into a leisure activity.

Costa’s focus on ethical sourcing also resonates with conscious consumers. They highlight their efforts to work with Rainforest Alliance-certified coffee suppliers, ensuring sustainability and a fair deal for farmers.

This ethical stance aligns with the growing demand for transparency in business practices.

» Product Strategy

Costa’s product lineup has always been about offering variety while maintaining quality. Their signature Mocha Italia blend is a cornerstone, providing a consistent flavor that loyal customers can always count on.

For example, here‘s a video of how it is made:

But Costa doesn’t just stop there. They innovate constantly.

Seasonal menus, like their popular festive drinks (think Gingerbread Latte), create excitement and give customers something new to look forward to. Plant-based milk options address dietary preferences, making their offerings inclusive.

Costa Express machines in high-traffic areas have revolutionized convenience. These machines replicate the in-store experience and never compromise on quality.

Ready-to-drink bottled coffee is another strategic move. Whether someone is at work, on a road trip, or just too busy for a café visit, Costa has ensured they are part of the coffee break.

» Digital Marketing Initiatives

Costa’s use of digital tools has been a game-changer. They designed the Costa Coffee Club loyalty program to reward regular customers.

Here’s how the Costa Coffee Club app works:

For every penny spent, customers earn points they can redeem later.

Introducing this new program incentivizes repeat visits and builds long-term loyalty. Mobile app integration takes convenience to the next level. Customers can order ahead, pay digitally, and skip the line (a huge win for busy professionals).

Personalized offers based on past purchases make the experience feel customized and thoughtful. On social media, Costa is far from silent. They actively engage their audience with BTS content, promotions, and user-generated campaigns.

Wow! This looks tasty:

bosh.tv

View more on Instagram

Major Marketing Campaigns

1. Behind Every Cup Campaign

Costa's main goal was to show people how they make their coffee. They filmed Costa baristas making drinks in stores, showing all the small details like how they tamp the coffee grounds and steam the milk just right.

You might want to watch this:

and here’s another video:

These videos weren't glossy or perfect - they showed baristas working in stores. Costa put these videos on TV during prime-time shows and all over social media.

In stores, they added signs near the counters so customers could watch their baristas and match what they did to the skills shown in the ads.

They also created a website where people could "meet" their local baristas and learn coffee-making tips. The campaign focused on the message that Costa's baristas were skilled professionals who took pride in their work.

Numbers

• Spent £10 million on the campaign

• TV ads reached 40 million UK viewers

• Instagram engagement increased by 218%

• Store visits went up 8% during the campaign

• Brand trust scores improved from 72% to 84%

This campaign performed well because people liked seeing ACTUAL Costa workers, videos showed how they make people's favorite drinks, and the overall campaign felt honest.

2. Costa Express - Quality Guarantee

This was a bold move by Costa to tackle people's doubts about machine-made coffee. They announced that those who didn't enjoy their Costa Express drink could get a free handmade drink at a regular Costa store.

They put bright, clear signs on every Express machine explaining this guarantee. To spread the word, they got popular social media influencers to film themselves trying Express machines in different locations - at gas stations, in grocery stores, and at train stations.

They also ran radio ads during morning commute times when people were most likely thinking about coffee. The campaign included training staff at locations with Express machines to help customers use them properly and explain the guarantee.

Numbers

• Express machine sales grew by 32%

• They only claimed 0.5% of drinks back

• Machine usage increased from 52% to 67%

• Added 1,000 new Express locations

• Customer satisfaction with machines went from 71% to 89%

3. Costa For Everyone Campaign

This campaign was about showing that Costa had something for every type of customer. They redesigned their menu to highlight different options for different times of day and several customers.

• For morning commuters, they created breakfast bundle deals.

• For afternoon visitors, they introduced special cake and coffee blends.

They added many new plant-based drinks and mentioned all dietary options on menus.

The campaign included different ads for different regions - in London, they focused on quick service for busy professionals, while in suburban areas, they highlighted family-friendly spaces and weekend offerings.

They also created special student deals and promoted them near universities.

Numbers

• Sales of plant-based drinks are up by 47%

• Afternoon visits increased 28%

• App downloads increased by 156%

• New customer sign-ups: 2.1 million

• Revenue grew 15% during the campaign months

4. Little Acts of Kindness

Costa turned this campaign into a community-building exercise. They allowed store managers to give away free drinks to customers who looked like they were having a bad day. They created a system where customers could pre-pay for drinks for strangers.

Store staff were encouraged to share stories about kind customers on social media. They partnered with local charities in each store's area so customers could donate their loyalty points to good causes.

They also set up coffee corners in hospitals where NHS staff could get free drinks. The campaign wasn't just about giving away drinks. It was about creating a chain reaction of kindness in communities.

Numbers

• Social media mentions up 312%

• Brand sentiment improved 24%

• Store visits increased 18%

• 89% positive feedback on social media

• Customer loyalty program sign-ups increased 45%

5. Sustainability First Campaign

Costa completely changed how they handled environmental issues. They redesigned their cups to be fully recyclable and installed recycling points in every store. Customers even got bonus loyalty points for bringing reusable cups.

Check out this video for complete detailes about how Costa Coffee is recycling:

They created an easy-to-understand dashboard in each store showing how many cups they recycled and how much plastic they saved. They trained staff to explain environmental initiatives to customers.

They also started working with local councils to ensure their cups got recycled. In their stores, they added digital screens showing real-time environmental impact data, like how many trees were saved by customers using reusable cups that day.

Numbers

• Reusable cup usage is up by 78%

• Saved 12.6 million disposable cups

• Reduced plastic use by 45 tonnes

• Customer environmental awareness scores up 34%

• 2.8 million customers joined the recycling program

6. Digital-First Strategy

This was Costa's most massive technology update ever. They rebuilt their mobile app from scratch to make it faster and easier. They added features like remembering your favorite drinks and suggesting new ones based on your purchasing history.

They made it possible to order ahead at any store and added clear pickup times. They worked with delivery services to offer coffee delivery within 30 minutes.

They installed new digital menu boards that change based on the time of day and what was popular. They also created a new payment system that worked with any digital wallet.

Store layouts were changed to create dedicated pickup areas for mobile orders, with digital screens showing order status.

Numbers

• App downloads: 4.2 million

• Mobile orders are now 28% of sales

• Delivery sales grew 156%

• Average order value up £2.40

• Customer retention improved by 23%

All these campaigns worked well because of:

• Clear goals

• Good timing

• Using multiple channels

• Listening to customers

» They spent:

• "Behind Every Cup": £10 million

• Express Quality Guarantee: £5.2 million

• Costa For Everyone: £8.7 million

• Little Acts of Kindness: £3.4 million

• Sustainability First: £12.1 million

• Digital-First Strategy: £15.3 million

» And their ROI is:

• Average return: £3.20 for every £1 spent

• Highest return: Digital-First (£4.80 per £1)

• Lowest return: Sustainability (£2.10 per £1)

Results

• 24% market share in UK coffee shops

• 8.5 million loyalty program members

• 42% of orders through digital channels

• Customer satisfaction at 92%

• Brand recognition at 98% in the UK

Conclusion

Costa Coffee’s growth shows balancing tradition and innovation.

By maintaining a consistent brand identity while adopting new technologies and trends, they have built a loyal customer base across the globe.

Their marketing efforts, whether through digital engagement, thoughtful campaigns, or product innovation, are all tied to one clear goal: creating a memorable coffee experience.