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Market Analysis of Starbucks - Research Paper Example
Pages 8 (2008 words)
RUNNING HEAD: Starbucks Market Analysis Starbucks Market Analysis Miralnd (Ericia) Freeman UOPX Professor Richard Pearl December 9, 2011 Starbucks Market Analysis History of Starbucks Starbucks opened its first coffee hours in 1971, a privately-owned organization founded by Jerry Baldwin, Zev Siegl, and Gordon Bowker…
Its expansion has been based on foreign direct investment and also acquisitions of rival coffee houses. Starbucks’ success from the late 1990s onward has been to its dedication in providing consumers with a gourmet coffee experience, a means of differentiating the company and also establishing pricing that was higher than industry norms per cup of its products. This high pricing model is supported by advertising and the comparable, tangible quality of its products that continue to satisfy consumers that are willing to pay this extra price for the Starbucks experience. Description of International and Domestic Markets Starbucks does not target specific market groups, rather it has adopted a mass market advertising strategy positioned always on quality compared to competing coffee houses. However, the domestic market consists generally of high income consumers, professionals, and those with above-average household and discretionary income. There are also psychographic elements of Starbucks’ positioning 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). ...
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