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Overall a campaign focusing on Nero's tie to italian coffee culture while keeping the prices stable will be our main strategy to increase it's volume.

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Overall a campaign focusing on Nero's tie to italian coffee culture while keeping the prices stable will be our main strategy to increase it's volume.

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However Nero does not have this option for two reasons 

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However Nero does not have this option for two reasons 

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1) As of today Nero already has a broad base of customers upon which they rely on. These customers prefer Nero for what it is today, rasing prices despite of any change in brand perception may result in their permanent loss.

2) Nero is not a new company so adjustment period of it's perception will be relatively high making it hard for them to cope with market share loss caused by higher prices financially

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A marketing campaign focusing on differentiation of product may usually involve higher prices as prices are used as an indicator of quality by most customers

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A marketing campaign focusing on differentiation of product may usually involve higher prices as prices are used as an indicator of quality by most customers

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We believe that by making the customers acknowledging that Nero is the successor of Italian Coffee culture in UK they can offer a coffee experience neither of the other brands can offer

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We believe that by making the customers acknowledging that Nero is the successor of Italian Coffee culture in UK they can offer a coffee experience neither of the other brands can offer

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This approach that makes Nero a bit more alienated than the other brands if utilised correctly could be their powersuit

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This approach that makes Nero a bit more alienated than the other brands if utilised correctly could be their powersuit

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Nero has established as a European style coffee business as is observed in their slogan "best espresso this side of Milan"

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Nero has established as a European style coffee business as is observed in their slogan "best espresso this side of Milan"

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Starbucks on the other hand represents an American approach to coffee, being a global giant their products are well known and easy to understand for most customers.

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Starbucks on the other hand represents an American approach to coffee, being a global giant their products are well known and easy to understand for most customers.

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Costa has proven itself as a more consumer friendly and accessible coffee company

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Costa has proven itself as a more consumer friendly and accessible coffee company

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Nero lacks especially in the second channel

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Nero lacks especially in the second channel

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Two channels are important in bringing in customers

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Two channels are important in bringing in customers

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1) proximity of store location to customer

2) Brand awareness

3) Accessibility

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Main determinant of profit will be the volume of customers

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Main determinant of profit will be the volume of customers

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UK Coffee Chain Sales Market constituted of 4000+ coffee shops in 2016

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UK Coffee Chain Sales Market constituted of 4000+ coffee shops in 2016

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It took 8 years for it double in size from 2008 to 2016. We expect the rate of growth to increase therefore market grows quite fast

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It took 8 years for it double in size from 2008 to 2016. We expect the rate of growth to increase therefore market grows quite fast

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Oligopolistic structure of the industry can be observed from the graph

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Oligopolistic structure of the industry can be observed from the graph