Essay > Words: 2012 > Rating: Excellent > Buy full access at $5
Psychographic Segmentation of Starbucks
Dynamite Advertising Agency is executing “Marketing and Branding of Products Project” on behalf of Starbuck Company. This project is being executed to address an expected growth in sales of Starbucks Company among the traditional market and also in the perspective and younger market. In terms of branding and marketing, the Dynamite Advertising Agency will be Starbucks products to be appealing.
The Starbucks coffee stores and restaurants will be supplied with well designed disposable coffee cups that are appealing to their clients. The company will also ensure the branded coffee cups supplied are aesthetic, unique in designs, light, disposable and are environmentally friendly to avoid pollution. These are areas the company will capitalize on to build a strong relationship and to make Starbucks company attract many customers to their stores
Starbucks is a multinational company is a marketer, roaster and retailer of coffee that operates in over 60 countries. Furthermore, Starbucks Company sells a variety of tea and coffee products. The company also licenses its trademarks through channels like the licensed stores, national accounts for foodservice and groceries (Bussing-Burks, 2009).
Research on industry
The national market for hot drinks is large. However, the industry has been badly performing for several years with the rate of negative growth consistently and hence the steady shrinking of the market.
According to Weinstein (1994), the hot drinks national market reached a value of $10.2 billion in 2012, having reduced with a Compound Annual Growth Rate (CAGR) of -2.2 in the 2005-2012 periods. This decline was against the global trend of the hot drinks market. This decline led to a decrease in the country’s global share by 3% between 2005 and 2012. The leading source of revenue for the national hot drinks in 2005 was the sector of coffee, which accounted for 83% of the market value (Oldenburg, 1999). In terms of value, the hot drink industry sector was worth $10.2 billion in 2005, a decrease of 5% since 2005. The 5% decline in 2005 made this industry the worst performing in the market. The best performing was tea, but it also showed a 0.5% decline between 2005 and 2012 (McDonald et al, 1991).
Forecasting, Overton (2003) observed that the industry is predicted to experience a decreasing rate of growth that is consistent. By 2014, the forecast of the market is to reach $10.7 billion, which is equal to a compound annual growth rate (CAGR) of -0.6 in the 2007-2011 periods, below the global market. The analysis results indicated that the country’s share of the market in the globe will have reduced dramatically from 20.1% in 2002 to .............
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