Market analysis of starbucks

Market analysis of starbucksStarbucks was founded in 1971, in Pike Place Market, nuzzle in Seattle with hopes of creating a third place between home and work. The company was originally named Starbucks hot chocolate bean, Tea and Spices, honourable today change to Starbucks Coffee Company. Now stores ar located all over the U.S. They sprung up in urban areas, suburbs, as well as rural areas. This expansion developed the brand as we jazz it today. It has become a well kn feature name for quality coffee.The company has realized that people dont tho come for coffee they come for the atmosphere, (Kembell). Customers are able to socialize, read, study or enjoy music trance drinking coffee. They changed the normal experience of going to a coffee shop. The music selection, furnishings, wide selection of coffee, and neat guest service set them apart. Howard Schulz, CEO of Starbucks, once stated, You get more than the finest coffee when you visit a Starbucks-you get great people, f irst-rate music and a comfortable and upbeat meeting place.In their own words, Starbucks describes this as, champions line practices that help produce social, environmental and economics benefits of communities in which we operate.Starbucks wants to open new stores in both(prenominal) new and existing merchandises, expand their product development process, and cater to customers needs to eventually improve their fiscal position and dominate market share.Situational AnalysisThe limiting of impact on the environment comes in many a(prenominal) forms, from materials they use to the way the coffee in produced. The Urban Coffee Opportunity is to help get Starbucks Coffee Company stores into ethnically diverse communities.The mission and principles are listed among many another(prenominal) aspects of the company on their mesh site, starbucks.com.Coffee being their staple product, they offer over 30 blends, which come from all over the world. They software program these as well as p roduce a premium handcrafted beverage in their stores. Starbucks also offers its customers a wide assortment of home coffee machines.That means in the United States they had 11,168 stores, 7,087 company operated stores and 4,081 licensed stores call for up this staggering number.They now bugger off 4,588 stores in over 43 countries.Their brand is top base on balls in the coffee world, but this awareness is mainly in respect to their handcrafted beverages and other items located at their store.Market SummaryTarget MarketsThe primary target audience was found by evaluating information from direction in on those that drink ground pre-packaged coffee in the home. another target audience is women 20 to 45. A secondary target audience is men aged 20 to 45.They to a lower placestand that Starbucks is more than just a brand of coffee, but instead, its an experience that a person is savouring in the morning during their coffee time.the original target market has not disappeared, but has expanded into the demographic of the store location.Market Demographics info from 2004 showed the company was far from reaching existing markets. That in the Pacific Northwest, there was one store for either 20,000 people whereas in the Southeast there was only one store for every 110,000 people.Some Researches showed Starbucks was direct in over 300 Company-owned stores in the United Kingdom, Australia, and Thailand.Customers that started visiting Starbucks in 2002 were 45% female,55% male.The most habitual customers average 21 visits per month, whereas the typical customer visits seven times per month. Average age for an established customer was 38, new customers was 42.Demographic factors are important to Starbucks so executives dismiss make vital decisions regarding population, ethnic groups and expansion. gibe to the CIA World Factbook, people between the ages of 15-64 make up the largest percentage of the population, and therefore havethe greatest charm on Starbucks to m aximize profit.Market NeedsMarket GrowthStarbucks wants to create an experience for their customers that combine their on-the-go schedule, as well as a place to relax. they believe people come here for the coffee, but ambience is what makes them want to stay,Starbucks operates over 10,000 retail stores. Most of the 4,200franchised stores are located in shopping malls and airports.Starbucks menu contains brewed coffee, espresso traditions andfavourites, cold beverages, coffee alternatives, frappuccinos, and the bargain of whole beans.From the beginning when Howard Schultz tookover Starbucks, he believed, Partner satisfaction leads to customersatisfaction, Starbucks employees are referred to as partners. As of 2002,Starbucks employed 60,000 partners worldwide, 50,000 of those in the United States.Specialty coffee was an estimated $5 billion business in the foodservice channel. Starbucks was estimated to have a 5% share.In-the-home consumption was an estimated $3.2 billion business.Sta rbucks was estimated to have a 4% share.The coffee market can be divided into consumers division by where the coffee is drunk, In-Home vs. Out of Home and type of product, Soluble (Instant) vs. commonwealth coffee.Three market trends worth noting are firstly the anticipated growth of the out of home segment based on a recent study by Nestle (As reported in Bernama cupboard 2009), where Malaysians currently spend 35 per cent of their total food and beverage expenses out-of-home.Secondly, instant coffee market caters quite specifically to local tastes. This can be witnessed by the behaviour of Nestle , the market leader, who in 2009 (Chan 2009) also introduced a range of instant hot drinks targeted at local tastes to compete directly with other domestic brands who have specialised in domestic flavours such as White Coffee or Kopi-O.PEST ANALYSISThe PEST analysis examines the broad environment in which the organisation is operating. (Johnson Scholes, 1999) There are the four key ar eas in which to consider how current and future change can affect the business of Starbucks.Political factorsPolitical factors include government regulations and legal issues and define both formal and informal rules under which the company must operate. (Knowles et al, 2001) As Starbucks is expanding internationally, trade restrictions, tariffs, tax policies and employment laws of related to their business countries have forge upon Starbucks.Economic factorsThe Starbucks business depends on economic factors in developing countries, where it buys the coffee beans. Coffee is the principle commercial message crop.Social factorsThe social and cultural influences on business vary from country to country. Social factors include the demographic and cultural aspects of the external environment. These factors affect customers needs and the size of the potential market. (Johnson Scholes, 1999)Technological factorsTechnologies allow Starbucks to offer the higher(prenominal) standard quality products its computerised roasters allow the company to create unique computerised curves in roasting coffee beans.