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”• Identifying Major Competitors
Various Markets
• Gourmet Coffee • Regular drip Coffee • Skinny Platform• Non- Coffee Gourmet Drinks (tea, chai,
smoothies)• Image• Bottled Coffee
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 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 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 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 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
• 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 Forces
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
Ansoff’s Growth Matrix
Present Product New Product
Present Market
Market Penetration: Hotels, Grocery Stores, Schools, Businesses, Industries Cafeteria and Airlines.
Product Development: Salads and New bold Fresh lunch Program. Examples: Fiesta Chicken Salad, and Fruit and Cheese Platter.
New Market Market Development:Open Stores all over the world.Brazil, Russia, Romania, as well as putting the first Starbucks logo in Cairo Egypt
Diversification: Music CDs, Clothing, Coffee Mugs, and Chocolate.
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 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
• 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
• 18-24 year olds– 68% for reasonable price– 61% for the wide variety of coffee, tea and other
beverages– 69% Conveniently located
Two Major Competitors
Conclusion
Questions Anyone??
• Thank You and Have a Happy Valentines Day!
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