8002MMGT Marketing Management: Starbucks Americano Market Report

This report provides a comprehensive marketing analysis of Starbucks and its café Americano product within the Australian market. The analysis begins with an executive summary and table of contents, followed by an introduction outlining the report's objectives. A detailed market situation analysis is conducted using the PESTEL framework to assess political, economic, social, technological, environmental, and legal factors impacting Starbucks. The 5C framework (Company, Customers, Collaborators, Competitors, and Climate) is then applied to evaluate internal and external factors. The report includes market segmentation based on demographic, psychographic, geographic, and behavioral factors. Based on the analysis, recommendations are made for the most suitable target market, focusing on business professionals and millennials. The report concludes with a summary of findings and recommendations, and is supported by a reference list.

RUNNING HEAD: Marketing Management
Marketing Management

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Executive Summary
The below mentioned paper analyse the marketing details for the organization Starbucks and
their product café Americano in the Australian environment. The Australian environment is
analysed in the paper so as to help the company attain information about the climate of the
nation. Further, the 5C analysis helped in evaluating the internal as well as external features of
the organization that can act as a strength or threat for the organization. The segmentation is
defined along with the recommendation of best target segment that Starbucks should target for
their Americano product in the business environment.

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Contents
Introduction......................................................................................................................................3
Market Situation Analysis...............................................................................................................3
PESTEL Framework....................................................................................................................3
5 C Framework............................................................................................................................5
Market Segmentation.......................................................................................................................6
Target Market Recommendations....................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................9

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Introduction
The objective of the report is to enlighten the reader with the information about the details about
the company Starbucks and analysis of the product café Americano. The objective of this report
is to provide detailed information about the marketing analysis for the brand and the
organization. Market situation analysis for the organization and evaluation of the market
segmentation in the conducted in the paper so as to analyse the correct market in which the
company should sustain its business. Starbucks is a highly famous brand in the food and
beverages that is regarded as a premium brand. The organization is known for serving different
varieties of coffee to the customers with their name on the coffee. Further, the organization
wants to promote the brand image of their products and especially café Americano due to which
analysis is conducted.
Market Situation Analysis
PESTEL Framework
Political: the environment of the nation is political stable which acts as one of the major reason
due to which corporate activities becomes stable in the economic environment. The nation is a
constitutional monarchy with the queen Elizabeth II as the head of the state. The queen is
represented by the governor general of the nation at the state level and the prime minister is the
head of the nation. According to the analysis of Statista, the country is 6th largest country in the
world. The country is also a part of OECD, WTO and G20 and maintains strong connection with
the federal government of US as well (Kremer, and Symmons 2015).
Economic: the economy of the nation comes on the 14th position in the worldwide index and 5th
largest in the Asian region in the year 2019. The countries nominal GDP is estimated to be US $
105 trillion which subsequently accounts to 1.7% of the overall global economy of the nation.
Also the presence of mixed economy in the nation and rate of poverty is low. The market of
nation is mostly free for the trading activities and comes under first five developed countries in
the world. Four main components of the market of nation are financing, trade, manufacturing and
services (Digital Journal 2018).

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Social: the nation is one of the best country in terms of social conditions and comfortable
environment. There is adequate presence of wealth, happiness, health and education and quality
of life. These factors together help in increasing the satisfaction of people living in this nation.
The life expectancy rate for men is 80 years and 84 years is for women. The country has
relatively small population which is approaching to 24 million. There is presence of multicultural
in the nation and heritage is important for people. Also, people in this nation prefer living loosely
knitted group and focus on individual growth (Nordea 2018).
Technological: the nation is one of the most technological advanced country where companies
focuses on using this type of technology for the growth of their business. Artificial intelligence,
cloud computing, robots etc. are promoted by several companies. All the organizations wants to
procure the technology and become the best by satisfying the customers in the market. It is
believed that this type of advancement helps the organization to move towards their path in
better ways. Local companies have also started investing in procuring technology with the
growing demand of customers. Tech savvy companies have become priority for many customers
in the market (Pitman, et. al., 2017).
Environmental: the country comes under the list of most beautiful nations in the world. There is
presence of amazing beaches, forests and mountains. The environment of the country is stable
and comfortable of the people to visit and enjoy. Also there is presence of biodiversity and more
than one million species living on mountains and forests. However, the fire on the Australian
forests extremely degraded the number wildlife species like kangaroo, koala etc. Also, the fire is
still burning the Australian forests. This issue has affected the climate of nation as fire is
increasing humidity in the nation (Pan, Chen, and Zhan 2019).
Legal: the last segment of PESTEL analysis states that there is structured legal landscape in the
nation. The governments of the nations have formed fair and accurate laws for every problem
faced by people and so as to reserve the rights of the people in the environment. Several laws
like fair trading laws, competition law, company law etc. are formed in fair and just manner.
Also, there are several strict penalties defined in the legal environment if the organizations fails
to follow such regulations in the Australian environment (PAN 2019).

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5 C Framework
Company: the strength of the company Starbucks is that they have a strong brand image which
holds global reputation as well. Also, the company serves wide variety of products in the market
that interest the customers. The company leverage the brand equity to enter in new market
promote the products. The weakness of the organizations that they have poor supply chain
facilities and high work pressure among the employees. The opportunities for the organization
Starbucks is that they have growing customer base in the low-end market. They have opportunity
to collaborate with local brands for market penetration. The threat of the organization is growing
health consciousness among the customers in the market and criticism of environmental
protection groups as well (Haskova 2015).
Customers: Starbucks usually had high-end customers in the market but now the company has
also expanded in the low-end segment. The customers’ base of the organization is large and
expanded because of the variety of products and services that the company offers. The target
segment shows that there is presence of steady market growth. The primary customers of the
organization are office going people and families with their children. The customers also show
brand loyalty in the market (Chernev 2018).
Collaborators: the organization focuses on enhancing their relationship with the local partners in
the market so that they get comfortable in the local market as well. In order to choose right
collaborators, the company needs to analyse the different features of the value chain like, agility,
flexibility, revenue sharing etc. The company partnered with several famous personalities like
Ariana Grande and several organizations like Apple to promote the brand image in the market
(Virgin 2016).
Competitors: although there is presence of high degree of competition in the market, however,
the brand image of the organization helps them to sustain their position in the market. The
customers show brand loyalty towards the coffee of Starbucks. There is strong power in the
hands of buyer due to which it becomes important for the company serve to the customer
according to their requirements. The product differentiation and presentation strategy helps the
company to eliminate competition from the market.

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Climate: the climate feature explains the environment in which the organization is going to
perform its business functions. It should be noted that the environment Australia is profitable for
the organization to promote its brand café Americano in the market. The customer’s profile of
Australian people is adequate for the organization. The company should tap on the current trends
prevailing in the Australian environment and then capture the interest of people by involving
such trend in their activities (Li 2018).
Market Segmentation
Demographic Segmentation: in the perspective of this segmentation, the company should target
people belonging to middle and higher income level people present in the market. Although
coffee comes in the category of necessary goods but the brand image of the company makes it
premium. Further, the company should also target people present between the age group of 25 to
40 years. These are the major business people who prefer drinking Americano coffee. The
primary target segments of the organization are the people upper middle and above income level
because drinking Starbucks coffee is a luxury that not people can afford on a regular basis. The
company also targets people who prefer experimenting with their coffee. These people are
attracted by the organization as they offer variety of products in the market (Alwaleed, et. al.,
2019). Further, the company also target millennial people belonging to the age group of 18 to 24
who visit the café to show off their personality and hang out with friends as well.
Psychographic Segmentation: on the basis of this type of segmentation the company Starbucks
targets people belonging to the group that belongs to middle and upper class in the market. The
organization targets people who have a social class and lifestyle to maintain in the environment.
The organization targets who are aspirer and mainstreamers in the environment as these people
prefer the taste of Starbucks Americano coffee in the environment.
Geographic Segmentation: on the basis of this type of segmentation the company Starbucks
targets people belonging to the group that is present in the environment Australia. Although, the
company is present in the Australian environment but the major target of the organization to
expand the scope of business in the market of Australia. The organization target mostly urban
people who are either business men or young people (Krishna 2018).

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Behavioural Segmentation: on the basis of this type of segmentation the company Starbucks
targets people belonging to the group that shows loyalty to towards the brands in the
environment. The brand of Starbucks provides different types of products and services to
customers that attain brand loyalty in the market. They target hard core loyal people in the
environment who drink on Starbucks on most of the occasions either at work or with family
(L’AUDIT MARKETING, and DE 2019).
Target Market Recommendations
From the above mentioned analysis of the Starbucks environment, it is suggested to the
organization that they should majorly focus on two segments that are business men and
millennial in the environment. The company should slide the interest from the family people to
working people and millennial people. These are the major people who would like the taste of
Americano coffee in the environment. Therefore, these people would build up the brand image
for the organization in the Australian environment. It should be noted that they are the loyal
people in the environment because the working people do not have enough time to change their
coffee brands so they choose one that is most preferable to them. Further, if the millennial like
the environment the services of the coffee then they would visit the place on a regular basis
(Glowik 2017).
Thus, it is recommended to the organization, to open the outlet at the places from where the
working people can easily take away the coffee in hassle free manner. Further, the organization
should also build up the internal ambience fancy yet chic so that the millennial people feel
comfortable and make the location as their prime destination. The reason for choosing this target
segment is that they are the people who are extremely loyal for the brands that they like. On hand
millennial like experimenting while other group would prefer their coffee simple like
Americano. Thus, this segment would definitely increase the sales of the organization.
Conclusion
Thus, in the limelight of above mentioned events, the fact should be noted that the paper
highlighted information about the marketing activities of the company Starbucks for the product
café Americano. The environmental analysis of the company is conducted along with the

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analysis of the market whom the company should. With the help of above mentioned
information, the company would be able to easily analyse the market in which the company
should expand and serve its marketing campaign. This would help the company attract right type
of people for the business.

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References
Alwaleed, N., Al Huwail, N.H., Singh, S. and AlMejhem, A., 2019. A Case Study on
STARBUCKS. Journal of the community development in Asia, 2(2).
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Digital Journal. (2018)Australia PESTEL Analysis, SWOT Analysis and Risk Analysis Market
Research Report Launched[Online] Available from: http://www.digitaljournal.com/pr/3345099
[Accessed on: 31-01-2020].
Glowik, M., 2017. 4.7 Case study: Starbucks. Global Strategy in the Service Industries:
Dynamics, Analysis, Growth, p.156.
Haskova, K., 2015. Starbucks Marketing Analysis. CRIS-Bulletin of the Centre for Research and
Interdisciplinary Study, 2015(1), pp.11-29.
Kremer, P.D. and Symmons, M.A., 2015. Mass timber construction as an alternative to concrete
and steel in the Australia building industry: a PESTEL evaluation of the potential. International
Wood Products Journal, 6(3), pp.138-147.
Krishna, C.G., 2018. Starbucks Communication Strategies–More Than Just a Cup of Coffee. IUP
Journal of Soft Skills, 12(3), pp.23-53.
L’AUDIT MARKETING, U.M.D. and DE, C., 2019. Marketing Audit A Method Of A Conduct
Evaluation Of The Marketing Strategy And The Business Performance. Revue Internationale du
Marketing et Management Stratégique, 1(4), p.156.
Li, C.Y., 2018. Consumer behavior in switching between membership cards and mobile
applications: The case of Starbucks. Computers in Human Behavior, 84, pp.171-184.
Nordea. (2018) The economic context of Australia [Online] Available from:
https://www.nordeatrade.com/en/explore-new-market/australia/economical-context [Accessed
on: 31-01-2020].

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PAN, M.Z., 2019. Review of Environment Influence on Virgin Australia’s Competitive
Strategy. DEStech Transactions on Social Science, Education and Human Science, (ermis).
Pan, W., Chen, L. and Zhan, W., 2019. PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in
Engineering, 35(1), p.05018013.
Pitman, T., Roberts, L., Bennett, D. and Richardson, S., (2017) An Australian study of graduate
outcomes for disadvantaged students. Journal of Further and Higher Education, pp.1-13.
Virgin, M., 2016. Cheers! Starbucks Strategy in Italy and the Global Market (Doctoral
dissertation, University of Oregon).