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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

Starbuck’s Market Segment Matrix

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

Bradley Thomson, Christien Wilhem

February 14, 2008

market segment matrix
Market Segment Matrix
  • Identifying Various Markets
  • Porters 5 Competitive Forces
  • Ansoff’s Growth Matrix
  • Recommendation of one Market Segment for “YOU”
  • Identifying Major Competitors
various markets
Various Markets
  • Gourmet Coffee
  • Regular drip Coffee
  • Skinny Platform
  • Non- Coffee Gourmet Drinks (tea, chai, smoothies)
  • Image
  • Bottled Coffee
various markets4
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
various markets5
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
various markets6
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
various markets7
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
various markets8
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
segmentation strategy
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.
porter s 5 competitive forces11
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
focus on 18 24 year olds
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”
18 24 year olds
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
how coffee houses are used
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

reasons for visiting a coffee house
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
conclusion
Conclusion

Questions Anyone??

  • Thank You and Have a Happy Valentines Day!
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