1. Starbuck’s Market Segment Matrix Team 4: Nina Huynh, Travis Lanthier, John Ly, Bradley Thomson, Christien Wilhem February 14, 2008

2. Market Segment Matrix Identifying Various Markets Porters 5 Competitive Forces Ansoff’s Growth Matrix Recommendation of one Market Segment for “YOU” Identifying Major Competitors

3. Various Markets Gourmet Coffee Regular drip Coffee Skinny Platform Non- Coffee Gourmet Drinks (tea, chai, smoothies) Image Bottled Coffee

4. Various Markets Gourmet Coffee – 18-34 year old coffee drinkers want something more than just coffee – Unique and Different, Starbucks Exclusive – Examples: Caramel Macchiato and Gingerbread Latte

5. Various Markets Brewed Coffee – Older in Age – Generally just want coffee for a caffeine fix – People that are in a hurry. Image – Well known brand – Work fast – Status

6. Various Markets Bottled Coffee – People on the go – Mid-day pick me up – Usually found at Grocery Stores. – Examples: Double Shot Caramel Frappuccino Vanilla Frappuccino Mocha Frappuccino

7. Various Markets “Skinny Platform” – Lower in Calories – Sugar-Free Syrup, Skim Milk and no Whip Cream – Enjoy great coffee without the calories (only 90 calories!) – Examples: Skinny Cinnamon Dolce Latte Skinny Mocha Skinny Caramel latte

8. Various Markets Non- Coffee Gourmet Drinks – Ideal for people that are non-coffee drinkers – Examples: Green Tea Frappuccino Tazo Chai Latte Blended Smoothies Hot Chocolate Iced Tea

9. Segmentation Strategy Concentrated Targeting – Focusing on the niche of gourmet coffee drinkers – Make our coffee stand out compared to others – Expanded product line after establishing the niche.

10. Porter’s 5 Competitive Forces

11. Entry of Competitors (How is easy is it? Threat of substitutes Bargaining power of suppliers Intensity of Rivalry

12. Ansoff’s Growth Matrix Present ProductNew Product Present Market Market Penetration: Hotels, Grocery Stores, Schools, Businesses, Industries Cafeteria and Airlines. Product Development: Salads and New bold Fresh lunch Program. Examples: Fiesta Chicken Salad, and Fruit and Cheese Platter. New MarketMarket Development: Open Stores all over the world. Brazil, Russia, Romania, as well as putting the first Starbucks logo in Cairo Egypt Diversification: Music CDs, Clothing, Coffee Mugs, and Chocolate.

13. Focus on 18-24 year olds Starbucks is the most visited Coffee shop!! Averages around 5.3 visits per month per person 55% of 18-24 year olds have visited a coffee shop in the last month 75% with the average being 63% “use cream- type or whitener-type products with my coffee”

14. 18-24 year olds 18-24 year olds are the largest segment of consumers (61%) that drink coffee for an energy boost (average is 43%) as well as, to help them concentrate (26% vs. 18% average) » Mintel

15. How Coffee Houses are Used 18-24 year olds – 80% go to get coffee and snacks – 49% go to socialize – 43% go to unwind and relax – 26% go to study or work Mintel

16. Reasons for visiting a Coffee House 18-24 year olds – 68% for reasonable price – 61% for the wide variety of coffee, tea and other beverages – 69% Conveniently located

17. Two Major Competitors

18. Conclusion Questions Anyone?? Thank You and Have a Happy Valentines Day!