TARGET AND MARKET SEGMENTATION (SAMUEL CHASE)
MARKET DESCRIPTION
Suva Fiji is a popular tourism destination and home to about 75,000 residents. “Over the years, the number of tourists visiting Fiji has shown a steady increase, with figures for 2010 up by 15%” (Collins, n.d.). With a steady increase of tourism and population growth, the “total income [brought in by tourists] is reported [to be] $1.2 billion[which] indicated an average [amount spent] of close to $2000 per person” (Lopez, n.d.). With that being said, we believe it would be very beneficial to expand Starbucks into Suva Fiji and partner with Holiday Inn to and give consumers a place where they can purchase fine tea.
In the past two years “Australians have consume about 9.8 …show more content…
SWOT Analysis
According to a 2013 Basingstoke research report and data compiled from austrade.au, an Australian small business importer/exporter website; this strategic venture would have the following Strengths, Weaknesses, Opportunities and Threats (SWOTs):
Strengths:
According to Austrader.au, the beverage market in Fiji has a concentrated market on tourist non-alcoholic beverages. This means there will be little competition. Additionally, Fiji is a member of the Pacific Community Trade Bloc; also founding members – Australia and New Zealand.
Starbucks already has significant establishments in Australia and New Zealand; having a partnership in Fiji would be ideal to complete its presence across the Pacific Partnership and also build out routes to small Pacific Presence Partners (i.e. Micronesia, Solomon Islands, …show more content…
This is just one of four coups in less than 20 years, according to ABC.net.au. The result of the coup was travel ban enacted by Australia and New Zealand which will put a severe damper on revenues of the join Teavana venture. Although the ban has since been lifted, this represents a political instability which this joint venture will need to consider and register as a risk (Cooney, 2014).
Market Data to be Gathered
In order to effectively sell to Australian vacationers (or ‘holiday makers’), the Teavana luxury is mostly focused on those with high disposable incomes. In Australia, some of the highest incomes are in the metro areas with a concentrated focus in Professional/Managerial, legal and Health Professional fields. With that in mind, this joint venture would work best to capture the below information by use of loyalty cards or via credit card vendors:
• Salary – Focus is on a customer base with the highest disposable earnings
• Gender – This has the potential to change promotion methods, as high earning men reside in different metro areas vs. high earning women
• City of residence – Focus is on where to aim promotions and other
MARKET DESCRIPTION
Suva Fiji is a popular tourism destination and home to about 75,000 residents. “Over the years, the number of tourists visiting Fiji has shown a steady increase, with figures for 2010 up by 15%” (Collins, n.d.). With a steady increase of tourism and population growth, the “total income [brought in by tourists] is reported [to be] $1.2 billion[which] indicated an average [amount spent] of close to $2000 per person” (Lopez, n.d.). With that being said, we believe it would be very beneficial to expand Starbucks into Suva Fiji and partner with Holiday Inn to and give consumers a place where they can purchase fine tea.
In the past two years “Australians have consume about 9.8 …show more content…
SWOT Analysis
According to a 2013 Basingstoke research report and data compiled from austrade.au, an Australian small business importer/exporter website; this strategic venture would have the following Strengths, Weaknesses, Opportunities and Threats (SWOTs):
Strengths:
According to Austrader.au, the beverage market in Fiji has a concentrated market on tourist non-alcoholic beverages. This means there will be little competition. Additionally, Fiji is a member of the Pacific Community Trade Bloc; also founding members – Australia and New Zealand.
Starbucks already has significant establishments in Australia and New Zealand; having a partnership in Fiji would be ideal to complete its presence across the Pacific Partnership and also build out routes to small Pacific Presence Partners (i.e. Micronesia, Solomon Islands, …show more content…
This is just one of four coups in less than 20 years, according to ABC.net.au. The result of the coup was travel ban enacted by Australia and New Zealand which will put a severe damper on revenues of the join Teavana venture. Although the ban has since been lifted, this represents a political instability which this joint venture will need to consider and register as a risk (Cooney, 2014).
Market Data to be Gathered
In order to effectively sell to Australian vacationers (or ‘holiday makers’), the Teavana luxury is mostly focused on those with high disposable incomes. In Australia, some of the highest incomes are in the metro areas with a concentrated focus in Professional/Managerial, legal and Health Professional fields. With that in mind, this joint venture would work best to capture the below information by use of loyalty cards or via credit card vendors:
• Salary – Focus is on a customer base with the highest disposable earnings
• Gender – This has the potential to change promotion methods, as high earning men reside in different metro areas vs. high earning women
• City of residence – Focus is on where to aim promotions and other