Market Demographics

Geographic’s (Moon)

Data from 2002 showed that in the Southeast there was only one store for every
110,000 people. whereas in the Pacific Northwest. There was one store for every 20,000
people. Hence, the company was far from reaching existing markets.

 International plans showed Starbucks was operating in over 30Company-owned stores

in the United Kingdom, Australia, and Thailand. Also, 900 licensed stores were operating
in Asia, Europe, the Middle East, Africa, and Latin America.

Demographics

 Young, affluent, tech-savvy customers (Hoovers) a 1999 estimate showed that 70%
of customers were internet users, and today the estimate has exceeded 90%
(Hoovers).
 Moms with strollers (Hoovers)
 People combining work and a coffee break (Hoovers)
 The most frequent customer’s average 18 visits per month, whereas the typical
customer visits five times per month (Moon).

Market Needs

Starbucks wants to create an experience for their customers that combine their on-
the-go schedule, as well as a place to relax. Senior vice president of administration
in North America Christine Day explains that, “people come here for the coffee, but
ambience is what makes them want to stay,”

Selection

Starbucks menu contains brewed coffee, espresso traditions and favourites, cold
beverages, coffee alternatives, frappuccinos, and the sale of whole beans.
Accessibility

Starbucks operates over 10,000 retail stores. Most of the 4,200 franchised stores
are located in shopping malls and airports. Starbucks coffee brands are also
marketed through grocery stores in the form of beans and even ice cream flavours.