Starbucks Market Segmentation

2446 Words 10 Pages
TABLE OF CONTENTS Page Executive Summary 2
1.1 Target Market 5
1.2 Brief Overview of Australia’s flavoured milk beverages industry 5
1.3 Market Segmentation
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The fortunes of the industry have been boosted in recent times by the café culture (Dairy, 2007a) pioneered by Starbucks in the USA. Other important developments that have fuelled growth in the industry are the increased consumer awareness of the health benefits of milk and milk products and new technologies that enable the shelf life of milk to be extended considerably. In response to growing focus on health, flavoured milk with low fat and sugar has been put on the market.

The industry has also witnessed rapid expansion of coffee shops in Australia. It is estimated that between 2001 and 2004, there was about 100 percent increase in the coffee chain outlets. Also, in 2004/5 about 1.6 billion coffees were served by the food service industry, of which majority were milk-based lattes (Dairy, 2007b). These developments hold good future prospects for the industry.

1.3 Market
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3.1 Evaluation of Market segments
From the company’s website (, regions such as NSW, Queensland South Australia and Victoria have greater demand for fresh milk. It was however difficult to assess market segments for age. However, it is known that the Australian population grew by 1.2 percent per year (Wikepedia, 2007a) and therefore corresponding demand demographically can be expected.

3.2 Market potential of milk beverages industry
According to market estimates, consumption of white milk grew by one percent in consumption, whilst that of flavoured milk increased by four percent per year (Dairy, 2007). This development holds good prospects for milk sales.

3.3 Competitive

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