Term Paper: Starbucks, a Market Analysis

Pages: 6 (2226 words)  ·  Bibliography Sources: 6  ·  Level: College Senior  ·  Topic: Business - Advertising  ·  Buy This Paper


[. . .] In fact, Starbucks is the most successful of its niche market. Compared to other restaurants that specialize in coffee beverages, Starbucks stands alone as the most popular with the highest revenue. Even though their prices are among the highest for coffee beverages, customers continue to buy their products including in supermarkets and online. The successful marketing of Starbucks as a status item.

They also create high level of variety through consistent introduction of new flavors and products. Consumers prefer more variety and higher quality ingredients when they pay more for a product and with Starbucks offering those two things, it's no wonder it has achieve such status in recent times. Does that mean it's the perfect choice for everyone?

I personally would not purchase from this company on a consistent basis. I do however like that they offer free Wi-Fi and several non-coffee options but do not appreciate the high price for average tasting coffee. In fact most of the coffee is not organic and they still use high fructose corn syrup in some of their mixes. Although they are showing more interest in revealing how their coffee is sourced and where they buy and grow their coffee, it doesn't appeal to me as much as making my coffee at home with ingredients I know are organic.

I won't lie and say I have not tried their products. I myself bought one of their coffee bags in my local supermarket. I purchased the blonde roast, which was alright, but did not taste as good as Dunkin Donuts coffee which is cheaper. I do like the brand in general and appreciate their prompt service and variety, but do not see the point in buying high end priced coffee if it does not taste high end. Ultimately I'm not a serious coffee drinker and even if I was, I would probably just buy gourmet coffee from a company I know represents what I want, organic, fair trade, and fair priced.

In conclusion the primary segmentation criteria used by Starbucks is psychographic segmentation, focusing on customers based on their lifestyle choices and attitudes as well as their income. This however should also be modified to include marketing strategies that involve appealing to a lower budget and people who want organic, all natural products. A lot of their products are still not chemical free with the majority of their coffees not certified organic. With a growing sector in the market who demands chemical free, organic products, Starbucks could definitely benefit from this move.

They took steps towards this kind of mentality but revealing sourcing and location information for their coffee and listing the ingredients of the products. The future of coffee and coffee shops like Starbucks looks bright with more and more people looking to drink coffee-based beverages. Creating adverts and promotional material geared towards the growing trend of organic will invite an increase in loyal customers and reduce brand switching by offering a wide variety of products and special, organic coffees regularly. Starbucks' marketing strategy continues to be its primary means of success within a highly competitive industry.

Along with the organic trend, social responsibility appears to also be on its way to becoming a necessary addition to any successful marketing strategy. Starbucks already has a mainly positive image with most of its consumers. Going into the future, it is important that Starbucks positions its brand as an experience that not only offers quality products, but also a reasonable price if desired, and ethically and socially responsible products that promote organic farming and reduction of harmful chemicals so as to entice new customers.


Mayo, E.J. (1977). The impact of the consumer's psychographic and demographic characteristics on buyer behavior: A comparative analysis of psychographics and demographics as segmentation variables in a rail passenger market. Ann Arbor, Mich: Xerox University Microfilms.

Morrison, M. (2013, September 20). Starbucks Launches Campaign Focused on Bean Quality | News - Advertising Age. Retrieved from http://adage.com/article/news/starbucks-launches-campaign-focused-bean-quality/244263/

Starbucks Coffee Company (2011). Starbucks Company Profile. Retrieved from http://globalassets.starbucks.com/assets/F62C45CD8A8B4699BEFC60A2618F0431.pdf

Weinstein, A., & Weinstein, A. (2004). Handbook of market segmentation: Strategic targeting for business and technology firms. New York: Haworth Press.

Yu, H., & Fang, W. (2009). Relative impacts from product quality, service quality, and experience quality on customer perceived value and intention to shop… [END OF PREVIEW]

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