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Starbuck’s Market Segment Matrix PowerPoint PPT Presentation

Starbuck’s Market Segment Matrix Team 4: Nina Huynh, Travis Lanthier, John Ly, Bradley Thomson, Christien Wilhem February 14, 2008 Market Segment Matrix Identifying Various Markets Porters 5 Competitive Forces Ansoff’s Growth Matrix Recommendation of one Market Segment for “YOU”

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Starbuck’s Market Segment Matrix

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Starbuck s market segment matrix l.jpg

Starbuck’s Market Segment Matrix

Team 4: Nina Huynh, Travis Lanthier, John Ly,

Bradley Thomson, Christien Wilhem

February 14, 2008


Market segment matrix l.jpg

Market Segment Matrix

  • Identifying Various Markets

  • Porters 5 Competitive Forces

  • Ansoff’s Growth Matrix

  • Recommendation of one Market Segment for “YOU”

  • Identifying Major Competitors


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Various Markets

  • Gourmet Coffee

  • Regular drip Coffee

  • Skinny Platform

  • Non- Coffee Gourmet Drinks (tea, chai, smoothies)

  • Image

  • Bottled Coffee


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Various Markets

  • Gourmet Coffee

    • 18-34 year old coffee drinkers want something more than just coffee

    • Unique and Different, Starbucks Exclusive

    • Examples: Caramel Macchiato and Gingerbread Latte


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Various Markets

  • Brewed Coffee

    • Older in Age

    • Generally just want coffee for a caffeine fix

    • People that are in a hurry.

  • Image

    • Well known brand

    • Work fast

    • Status


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Various Markets

  • Bottled Coffee

    • People on the go

    • Mid-day pick me up

    • Usually found at Grocery Stores.

    • Examples:

      • Double Shot

      • Caramel Frappuccino

      • Vanilla Frappuccino

      • Mocha Frappuccino


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Various Markets

  • “Skinny Platform”

    • Lower in Calories

    • Sugar-Free Syrup, Skim Milk and no Whip Cream

    • Enjoy great coffee without the calories (only 90 calories!)

    • Examples:

      • Skinny Cinnamon Dolce Latte

      • Skinny Mocha

      • Skinny Caramel latte


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Various Markets

  • Non- Coffee Gourmet Drinks

    • Ideal for people that are non-coffee drinkers

    • Examples:

      • Green Tea Frappuccino

      • Tazo Chai Latte

      • Blended Smoothies

      • Hot Chocolate

      • Iced Tea


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Segmentation Strategy

  • Concentrated Targeting

    • Focusing on the niche of gourmet coffee drinkers

    • Make our coffee stand out compared to others

    • Expanded product line after establishing the niche.


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Porter’s 5 Competitive Forces


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Porter’s 5 Competitive Forces

  • Entry of Competitors (How is easy is it?

  • Threat of substitutes

  • Bargaining power of suppliers

  • Bargaining power of suppliers

  • Intensity of Rivalry


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Ansoff’s Growth Matrix


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Focus on 18-24 year olds

  • Starbucks is the most visited Coffee shop!!

  • Averages around 5.3 visits per month per person

  • 55% of 18-24 year olds have visited a coffee shop in the last month

  • 75% with the average being 63% “use cream-type or whitener-type products with my coffee”


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18-24 year olds

  • 18-24 year olds are the largest segment of consumers (61%) that drink coffee for an energy boost (average is 43%) as well as, to help them concentrate (26% vs. 18% average)

    • Mintel


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How Coffee Houses are Used

  • 18-24 year olds

    • 80% go to get coffee and snacks

    • 49% go to socialize

    • 43% go to unwind and relax

    • 26% go to study or work

      Mintel


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Reasons for visiting a Coffee House

  • 18-24 year olds

    • 68% for reasonable price

    • 61% for the wide variety of coffee, tea and other beverages

    • 69% Conveniently located


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Two Major Competitors


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Conclusion

Questions Anyone??

  • Thank You and Have a Happy Valentines Day!


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