Marketing Analysis : Starbucks ' Market Segmentation Essay
Threat of new Entrants As the market for coffee shops and stores is already stagnant, so the threat of new entrant is very low and significant financial capital is required to open a new shop in UK.
The technique used by markets to get to grips with the diverse nature of market is called market segmentation (Jobber, D. & Ellis-Chadwick,F.(2012). Market segmentation can be divided into demographics, psychographics and geographic. In terms of demographics, we can divide the market into age, family, gender, income, occupation, education, religion, race, generation, nationality and social class. Demographics variables are the most popular bases for distinguishing customer groups (Kotler,P. 2003). Starbucks ' essential target market is men and ladies matured 25 to 40. They represent just about a large portion of (49 percent) of its aggregate business.
Geographic segmentation calls for dividing the market into different geographical units such as nations, states, region, countries, cities, or neighborhoods (Kotler,P. 2003). The wide range of Starbucks located in the major countries of the world gives a sense that Starbucks have perfectly segmented itself geographically.
In psychographic segmentation, buyers are divided into different groups on the basis of lifestyles or personality or values. People in same demographics can exhibit very different…