Introduction

The following report evaluates the marketing environment for the coffeehouse business, specifically Starbucks. The report will cover a brief background of the company and reasons to why Starbucks has been selected as a center group to display a marketing report. A macro environmental study will demonstrate important possible threats and opportunities for Starbucks. It will also look into further segmentation research, characteristics, views and behaviors within the consumer groups.

Background to Starbuck and Selection Criteria

Starbucks was established in 1971. The global brand is well known throughout the world and now sits in 50 countries, with more than 17,000 stores (Starbucks,2011). In 2010 the international
All of these ideas have helped to keep Starbucks popular as it gives customers the sense of importance, and are being helped to make their visit quicker. However recently fellow competitor Costa has designed a self-service machine (marketingweek,2011). Andy Harrison, chief executive of Whitbread (Costa), says: “Customers increasingly want great tasting coffee on the go, which makes the self-serve coffee market very attractive” this could steal some of Starbucks customers who just want a drink on the go rather than sitting.

Research into Customer Segments

Market research “The collection, analysis and communication of information undertaken to assist decision-making in marketing” (Wilson,2006). Market research helps any organistation and if the facilities were available, it would be a very good place to start when a company wants to make a change or introduce something new within the company. Companies need to research their markets so they can discover who their main customer target groups are. According to Kotler (1998), segmentation is the act of dividing the market into specific groups of consumers/buyers who share common needs and who might require separate products and communications. Understanding the needs of the segment allows marketers to make better decisions about when and where to advertise a product, how to price it and where to sell it.