Starbucks Market Segment Matrix

1
Starbucks Market Segment Matrix

• Team 4 Nina Huynh, Travis Lanthier, John Ly,
• Bradley Thomson, Christien Wilhem
• February 14, 2008

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Market Segment Matrix

• Identifying Various Markets
• Porters 5 Competitive Forces
• Ansoffs 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

4
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

5
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

6
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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Porters 5 Competitive Forces
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Porters 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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Ansoffs 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!