The Potential Effects of Marketing Segmentation on Sales Performance

This report investigates the potential effects of marketing segmentation on sales performance within the beverage industry, focusing on Starbucks Coffee. It explores the benefits of marketing segmentation, such as identifying market opportunities and providing better customer service. The report examines the impacts of marketing segmentation on a company's sales performance, emphasizing the importance of understanding customer needs and wants. It also discusses strategies to enhance sales performance, including selling to customer needs, creating customer attention, and identifying target customers. The methodology includes primary research using questionnaires and secondary data from various sources. The report identifies ethical issues faced during the research and outlines a detailed planning schedule. Furthermore, it highlights professional and career development skills, such as conflict management, writing, and observational skills, with associated action plans and target dates. The report concludes with a list of references, including books and journals, supporting the research findings.

Business Report
Proposal

1. Report title:
" The potential effects of marketing segmentation on sales performance in the beverage
industry. A study on Starbucks Coffee”.

2. Business Context:
In modern business world, it is being analysed that marketing plays a crucial role for every
single company as this will have positive impact on all the companies which are provides
their services in beverage industry. Here, it is being found that companies that are
performing their business in beverage sector faces several issues which is linked with
changes among taste of customers, policies and so on. Application of concept of market
segmentation directly aid a business firm in raising sales performance level. Mainly, it is a
customers oriented philosophy through which company can easily produce quality products
to satisfy customers needs as per their requirements. This may lead to improve profit margin
of an all the organisations whom are effectively used the different perspectives of market
segmentation.
Furthermore, increasing population of the world may diverse the buying requirements of the
customers. Thus, it is important for the company to effectively serve all the elements in
market place. Mainly, marketing segmentation consider as a process of subdividing the
market into sub set of customers which may help them in increasing overall sale of the
company at market place. By using marketing segmentation, business can easily evaluate
different segment need of the consumers that may contribute in fulfilling the same in
appropriate way. For example, if company produce innovative products than they have to
segment their customers on the basis of their needs. This will directly contribute in
enhancing overall sales at market place and at the same time also capture larger market share
form its rivals.
Starbucks was introduced for the first time in 1971 by Jerry Baldwin, Zev Siegi and Gordon
Bowker and it is performing in all over the world and consists with 28,218 locations where it
is performing tasks.
Apart from this, market segmentation could be considered as an indivisible or an effective
tool while practising marketing at today's business world. Here, it is being found that as
breakdown of whole market on the basis of different factors and determinants which
provides an opportunity to understand the needs of customers. Marketing conception could

also be applied through services. Here, it is understood from the point that marketing is
powerful concept even in the non-profit sectors. In present case, where Starbucks facing
issues related to their own sales performance, which impacted negatively on their profit
margins and also affected their image as well.

3. Project Questions:
● What are the key benefit of marketing segmentation.
According to Audretsch and Belitski, (2017), market segmentation is being considered as
one of crucial approach which is helping business organisations in improving or enhancing
their sales. Here, geographical market segmentation could be considered as one of the best
and effective approach which could aid Starbucks in becoming a much more effective and
efficient brand where it could easily raise sales in set time frame. Marketing segmentation is
an important process through which company dividing potential customers into sub group on
the basis of different needs and characteristics. For attaining success in market place,
company is also segment their customers into various groups which may help them in
enhancing overall sales. In context of this, Starbucks Coffee segment their market for
making their customers base strong. As there are some key benefits of marketing
segmentation:
 Determining market opportunities: Market segmentation is enable in determining the
market opportunities to the Starbucks Coffee. In this company analyse needs of each
and every segments with the aim of capturing customers attention towards its
offerings. With the help of this, company increase their customers base and at the
same time also increase overall sales at market.
 Better service to customers: Market segmentation is effective for business
organization to focus on marketing efforts through which company can easily
provide better services to their target customers as per their needs. By this company
can easily increase satisfy customers and established their competitive image.
● What are the major impacts of marketing segmentation on sales performance of
company?
Marketing segmentation play crucial role in overall sales performance of the company
because it may contribute in understanding the customers needs and wants towards the
offerings. With the help of this company can easily meet all the segment and at the same
time also rise profitability at market place. In context of Starbucks Coffee, they target
young, children, family customers. In this, company is responsible for providing them
quality services as per their needs and wants. This will enhance market share of the company

at market place. Mainly, marketing segmentation allow the company to target their potential
customers to satisfy their needs and wants. It may improve he satisfaction level of the
customers that directly impact on the sales performance of the company at market place.
● What are the ways that can used by company to enhance sales performance?
Every business organization wants to enhance their sales performance at market place. In
this company is responsible for making quality products as per customers requirements. This
will contribute in enhancing the market share of the company as compare to its rivals. For
attaining the same, Starbucks Coffee use various effective ways that may help them in
enhancing their sale performance at market:
 Sell to customers needs: It is important for business organization to offer products on
the basis of customers needs and wants. In this, Starbucks Coffee is responsible for
producing quality services as per consumers requirements. It may help in increasing
the sales performance at market place.
 Create customers attention: It is also an important way in which company produce
quality products with the aim of capturing customers attention. Through which
company easily create their customer base and at the same time also enhance
profitability level as well.
 Identify target customers: Starbucks Coffee is target family, children and young
generation to offer their quality products. In this they also analyse their actual
demand in order to provide them higher satisfaction. This will increase overall sales
performance at market place.

4. Current/ preliminary research and relevant theory:
According to...., marketing segment is the process of selecting target customers which may
contribute in increasing the profitability level of the company at market place. The main
purpose of this strategy is to capture larger market share by serving best quality products to
the target consumers on the basis of their needs and wants. This will directly contribute in
establishing the competitive brand image of at market place and at the same time also
contribute in enhancing overall sales and profitability as well.
5. Method of Inquiry:
Under this investigation report, primal method which is being used by investigator i.e.
Primary research investigating method which could aid in gathering or assembling right data
as accurate data to conduct this research appropriately. Questionnaire which is one of
effective approach of primary method have been used as primary method. Apart from this,
investigator have also got confused in some phases where he used secondary data as well
and used different resources like books, online websites, newspapers, journals and etc to pull
out relevant data
6. Identify ethical issues that you might face:
In present investigation, researcher have been through a number of ethical issues delayed the
whole project and impacted upon conclusions as well. Here, investigator gone through
different websites which did not given authentic information and made researcher to get
confused in different times. Henceforth, it was pretty much necessary for investigator to
collect data by his own rather than believing on any other research done by any authors.
Along with this, source of data is also consider as a ethical issue because sometime
investigator are not applicable for accessing the data due to confidently. Thus, it is important
for researcher to make sure that all the data and information are gather from authentic
sources so that they can easily take right decision and also improve the chances of attaining
positive outcomes.

7. Planning:
Activities/ weeks 1 2 3 4 5 6 7 8 9 10 11 12
Research proposal
Determining research aims
and objectives
Prepare research questions
Literature review
Research methodology
Questionnaire
Data analysis
Conclusion
Recommendations
Final submission
8. Professional and career development skills:
Area of development Action Plan Target Date
Conflict management skills In order to develop this skill,
It will be required for me to
look in previous arguments
on the same topic which has
been done by various authors.
Then only, I may become
able to perform well and to
draw favourable outcomes in
23rd December, 2018

specific time frame.
Writing skills In order to draw favourable
outcomes, I will have to write
down across 6 pages on any
topic daily. Through this,
only I may become able to
enhance my own skills right
on time.
29th January, 2019
Observational skills It will be required for me to
look into every single
document and observe it so
that I could read all the
minute details that is
associated with the research
because then only I will come
to know of the changes that
are happening in the research.
29th February, 2019
9. References:
Books and journals
Audretsch, D. B. and Belitski, M., 2017. Entrepreneurial ecosystems in cities: establishing
the framework conditions. The Journal of Technology Transfer. 42(5). pp.1030-
1051.
Deichmann, U., Goyal, A. and Mishra, D., 2016. Will digital technologies transform
agriculture in developing countries? Agricultural Economics. 47(S1). pp.21-33.
Horlacher, A. and Hess, T., 2016, January. What does a Chief Digital Officer do?
Managerial tasks and roles of a new C-level position in the context of digital
transformation. In System Sciences (HICSS), 2016 49th Hawaii International
Conference on (pp. 5126-5135). IEEE.
Knickrehm, M., Berthon, B. and Daugherty, P., 2016. Digital disruption: The growth
multiplier. Accenture Strategy, Tech. Rep.
Li, W. and et. al., 2016. e-Leadership through strategic alignment: an empirical study of
small-and medium-sized enterprises in the digital age. Journal of Information
Technology. 31(2). pp.185-206.
Mazzei, M. J., Flynn, C. B. and Haynie, J. J., 2016. Moving beyond initial success:
Promoting innovation in small businesses through high-performance work
practices. Business Horizons. 59(1). pp.51-60.
Tapscott, D. and Tapscott, A., 2016. Blockchain revolution: how the technology behind
bitcoin is changing money, business, and the world. Penguin.
Online
Effects of marketing segmentation on sales performance in beverage industry. 2017.
[Online]. Available through: <https://iproject.com.ng/marketing/effects-of-
marketing-segmentation-on-sales-performance-in-beverage-industry/