Market Analysis of Starbucks Research Paper Example | Topics and Well Written Essays - 2000 words

Market Analysis of Starbucks - Research Paper eccentricIts expansion has been based on exotic direct investment and also acquisitions of rival coffee houses. Starbucks obtainment from the late 1990s onward has been to its dedication in providing consumers with a gourmet coffee experience, a intend of differentiating the company and also establishing pricing that was taller than industry norms per cup of its products. This high pricing model is back up by advertising and the comparable, tangible quality of its products that continue to satisfy consumers that are willing to pay this especial(a) price for the Starbucks experience. Description of International and Domestic Markets Starbucks does not target specific market groups, rather it has adopt a mass market advertising strategy positioned always on quality compared to competing coffee houses. However, the national market consists generally of high income consumers, professionals, and those with above-average household an d discretionary income. There are also psychographic elements of Starbucks posture strategies, appealing to those who find ostentatious consumption to be important as it relates to their social reputation. Beyond signaling of quality, there is some status symbol effect to what coffee you are drinking (Aronin, Fetterman, Liu & Peng, 2004, p. 3). ... These two markets make up approximately 10-15% of the American population and are usually associated with white collar career-minded individuals. The international market is befuddled and does not fit any specific personality, lifestyle, or income profile. Starbucks operates in collectivist cultures where tradition and family are valued and also individualist countries that promote social self-expression, finding favor in both in footing of profitability and consumer following. In China, marketers for Starbucks stand outside of Starbucks facilities, using a handheld clicker each time they achieve new traffic (Boone & Kurtz). Market research identifies that it is the youther, more fashionable cultures that frequent the organization. In Austria and Canada, it is generally the teens, tourists and young adults that favor Starbucks coffee (Boone & Kurtz). SWOT Analysis of Starbucks To visualise the market potential of the company it is necessary to understand where Starbucks excels and where the business is lacking in key areas. Strengths Considerable cash chapiter that provides opportunities for expansion and a high credit worthiness for lending purposes or foreign investment. Backed by years of quality positioning and quality-focused advertising that has established a well-recognized brand and considerable consumer following. High pricing model that contributes to higher capital growth. In-store innovations such as its Coffee Master program that teaches customers about the subtleties of coffee, referred to as the cupping ceremony, similar to wine-tasting seminars (Helm, 2007). Partnerships with foreign coffee producers that express its commitment to corporate social responsibility that gains market attention and loyalty and also