Consumer Research

Target Market

Our target market is composed of men and women 17-45 years of age who mainly work
in urban areas and are looking for an alternative from the harsh coffee house environment
found in such places as Dunkin’ Donuts.

Market Segments Identified

Primary Market

Our primary market consists of men and women 25-45 years of age who are already or
looking to become coffee drinkers. This primary market is also tailored but not limited to
those who are working in an urban area such as an office building. We chose this
particular market segment because, based on our research, many people are now entering
the working world due to the post WWII economic boom. This group is taking part of the
United States economic prosperity by working more and ultimately spending more. Also
jobs are beginning to open up due to company expansion during this time. People are also
finding it easier to commute to urban areas because of the growing popularity of suburbs.

Due to this change in the United States economy, we believe this is the ideal time to
introduce Starbucks Coffee Houses. Our primary market finds coffee an essential part of
the morning routine and we are looking to play upon that idea. These people are also
beginning to or have already established themselves as sophisticated and are looking for
ways to highlight that. Starbucks Coffee Houses have a more unique personalized
experience as well as better knowledge about our coffee blends. We believe this will
attract those in this market segment.

A random selection of people in this age group preferred Starbucks coffee over Dunkin
Donuts and Krispy Kreme in a nation wide taste testing set up at major venues and
events. Many said they would be willing to switch their preferred brand of coffee for the
richer taste in Starbucks Coffee.

Secondary Market

Our secondary market consists of college students 17-24 years of age. These individuals
are looking for an alternative place to study other than libraries or college dorm rooms.
They are also becoming coffee drinkers due to the caffeine found in the drink especially
to stay up studying. Starbucks Coffee Houses are relaxing, warm environment, a different
alternative to the harsh study area of a library. It also conveniently serves coffee, a perfect
study environment for the typical college student.
Undeveloped/ Potential Markets

Our potential market consists of teenagers between the ages of 13-17. During this time
many teenagers are looking for an alternative to the typical malt shop to hang out and
talk. Because of Starbucks variety of food and drinks, this becomes an alternative to a
cheeseburger and milkshake. This group also makes up our potential market because they
will become the next generation of our secondary and primary market and by starting to
build brand loyalty now it will be easier to market Starbucks to them when they are older.

Executive Summary

1951 was a year of prosperity and growth in the United States economy. We feel this year
is a perfect time to introduce Starbucks Coffee Houses because the American ethos has
shifted from saving to spending money. Due to economic prosperity there are also more
people in the working world, opening up a whole new segment of untouched consumers.
This new coffee experience will exceed society’s expectations about coffee and prepare
them to spend a little extra for a completely new coffee experience.