Starbucks SWOT Analysis and Market Research Report for Marketing

This report provides a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Starbucks, examining its competitive position and market strategies. The analysis highlights Starbucks' strong brand, global presence, and customer loyalty, while also pointing out weaknesses like higher prices and the potential for imitation. Opportunities for expansion in new markets and product diversification are also discussed. The report explores Starbucks' market research methods, including the "My Starbucks Idea" website, which allows the company to gather consumer feedback and preferences. It also examines the use of demographic, geographic, psychographic, and behavioral data to profile customers and target specific market segments, such as office workers and students. The report concludes by emphasizing the importance of understanding the competitive landscape and consumer behavior for Starbucks' continued success.

Starbucks has one of the world’s strongest and most popular brands. The company also
has a growing population of loyal customers who prefer Starbucks based on quality and the
brand. In addition, the company has a global network of suppliers. The firm has also acquired
businesses as subsidiaries, such as Ethos Water, Seattle’s Best Coffee, and Teavana. This part of
the SWOT analysis shows that Starbucks is resilient through diversification and a global supply
chain.
For the weaknesses, the relatively higher prices of Starbucks products make them less
accessible to the large population of lower-middle class and lower class consumers. Most
Starbucks products are also based on generalized corporate standards that make the products less
aligned in terms of products and café ambiance. This part of the SWOT analysis shows that
Starbucks must innovate to overcome its weaknesses, especially the imitability of products.
Starbucks has the opportunity to expand in the Middle East and Africa, where the firm
currently has minimal presence. The company also has the opportunity to expand in Asia, where
economic growth rates are high. In addition, even though Starbucks already has a considerably
diverse product mix, further diversification can help improve its competitive advantage.
Partnerships and alliances can also strengthen Starbucks Coffee’s competitive position. This part
of the SWOT analysis shows that Starbucks has major opportunities for global growth.
For the threats, low-cost coffee from firms like McDonald’s and Dunkin’ Donuts
effectively compete against the more pricey Starbucks products. Also, other companies can
imitate the business. Many competitors have already imitated Starbucks and succeeded, such as
Stars and Bucks, a coffeehouse in the Palestinian Territories. There is also a growing social
movement supporting independent coffeehouses and opposing large coffeehouse chains like
Starbucks. This part of the SWOT analysis shows that Starbucks must ensure competitive
advantage amid potential negative effects of the identified threats, especially imitation and
competition.
Over the past few years, Starbucks has been conducting market research in a very
interesting way. In 2010, Starbucks created a website called “My Starbucks Idea,” where
consumers have the opportunity to share their thoughts on what the company can improve upon

to make the ma happier customer. When people want to post their thoughts on the website, they
must create an account. In doing so, they are giving Starbucks their email address and are
automatically signed up to receive Starbucks email newsletters. This is giving Starbucks very
easy access to information about their consumers. This helps Starbucks examine consumer
preferences and enables them to improve to stand out from their competition. This is the great
example of Starbucks’ primary market research.
For the secondary research, Starbucks can profile their customers and choose the target
markets. In order to profile the customers, Starbucks can research the market by demographic,
geographic, psychographic and behavioral view. Based on these, we are able to know that most
of the Starbucks customers are 18 to 45 years old people. Also, youngsters who want to gather
with their friends and office workers and students who need to catch up with their work are the
main customers of Starbucks. Therefore, based on this secondary research about customers,
Starbucks can position individual products for them. For example, for the office workers,
Starbucks provides accessible and comfortable place. And for the college students, they provides
low cost product.