PLAN NEW PRODUCT FOR STARBUCKS COMPANY

EXECUTIVE SUMMARY STARBUCKS COMPANY

Starbucks Company

Starbucks company is an American coffee company and coffeehouse chain.
Starbucks was founded in Seattle, Washington in 1971. The headquarters in 2401
Utah Avenue South, Seattle, Washington, U.S. As of 2018, Starbucks is present on
6 continents and in 75 countries and territories, with a total of 27,339 locations.
Starbucks open its first coffee store in Seattle in the early 1980s. Starbucks
locations serve hot and cold drinks, whole-bean coffee, microground instant coffee
known as VIA, espresso, caffe latte, full- and loose-leaf teas including Teavana tea
products and so on.
On December 1, 2016, Howard Schultz resign as CEO and would be replaced by
Kevin Johnson. Howard Schultz retired to become Chairman Emeritus.

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ACHIEVEMENTS


Starbucks welcomes 33 million coffee lovers weekly at more than 9,000
stores all over the world to provide its customer with an excellent experience.
Here are some of recent achievements Starbucks company:
-

One of the “Most Admired Companies in America”
Fortune – 2003–2015

-

One of the “World’s Most Ethical Companies”

Ethisphere – 2007-2015

-

One of the “Best Workplaces in Canada”
Great Place to Work Institute – 2011-2014

-

One of the “World’s 50 Most Innovative Companies”
Fast Company – 2012

-

One of the “World’s Most Valuable Brands”
Forbes – 2013-2017

-

100% Rating on the Corporate Equality Index
Human Rights Campaign Foundation – 2015-2017

-

One of the “World’s Most Ethical Companies”
Ethisphere – 2007-2017

PURPOSE OF THE REPORT
The Vietnamese coffee market is very vibrant with the participation of
dozens of famous and popular coffee brands, as well as hundreds of other nonbranded coffee products.

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In order to maximize profits and take advantage of the ease of use in the
country, most coffee products in Vietnam do not hesitate to mix impurities,
chemicals, flavors, colorants, preservative management. ... in coffee. All these
"indispensable ingredients" form a unique "Vietnamese" coffee range with a range
of hazards not limited to the health of consumers.


So that, Starbuck company launched new products, that is tea coffee.

Tea coffee is a unique combination of coffee beans, rose tea and sweet grass.
The unique aroma of Tea coffee will definitely make you happy like a cup of light
coffee, or even better. Tea coffee will help your brain to wake up to a full-blown
morning.
And finally, the aim of this report is get the setting that are important to
achieve the goals of the company in the market and to increase the rate of sales in
the markets by producing and making several changes in policies and strategies to
grow new product andincreasing number of customers that can get attracted towards
new products.
This product is expected to be launched in Vietnamese coffee market before
expanding service worldwide. This section outlines a specific and comprehensive
strategy base on some following factors:
- Value for customers
- Target markets
- Positioning
- Product strategy
- Pricing strategy
- Distrybution strategy

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- Marketing communications strategy and marketing organization


Table of Contents

CURRENT MARKETING SITUATION ..................................................... 5
Market Discription ............................................................................... 5
Product ..................................................................................................... 6
A Review Of Competition ....................................................................... 9
A Review Of Distribution ....................................................................... 12
THREATS AND OPPORTUNITIES ANALYSIS .......................................... 15
OBJECTIVES AND ISSUES ............................................................................ 18
MARKETING STRATEGY .............................................................................. 20
ACTION PROGRAMS ...................................................................................... 36
BUDGETS ............................................................................................................ 38
CONTROLS ......................................................................................................... 40
CONCLUSION ....................................................................................................
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REFERENCES .................................................................................................... 47


CURRENT MARKETING SITUATION
Currently Starbucks position is as the leading coffee organization depends
highly around the globe expansion policy. Expansion of Starbucks around the globe

is still in the early stages and Starbucks has the great opportunity for future growth.
Starbucks main objective was to launch itself as the most renowned and respected
brand in the world. The company main objective was to the expansion of its
branches all over the world, to broad its retail business, develop new techniques,
product and introduce new distribution channels in order to achieve its goals.

MARKET DISCRIPTION
Starbucks target market was 18 years to 24 years young professional because
they are not yet been loyal with coffee industry.
Starbucks strategy comprises to locate its stores at picky places such as the first
floor of blocks of offices, underground main entrance and urban areas.
Starbucks sales totally depends on company operate retail stores and certified retail
operations, Starbucks sells coffee and tea products through many others channels
like distribution targeting restaurants, hotels, colleges and universities and other
work places.

Beside that, with large companies, the demand of customers is also great. So,
Starbucks always responds to this demand by improving stores, new products,
employees and more about everything suitable for a great quality.
Starbucks are also interest to many other factors such as: Atmosphere, Quality
Coffee, Customer Service, and Partner Satisfaction. Starbucks sought to be a place
where people could lounge with a good drink and friends or maybe just a book. This
atmosphere was created to establish a friendly and welcoming environment.

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Every time you walk into a Starbucks, you know you will be greeted with a smile
and a friendly attitude. The training of the staff, in both how to be personable with
customers and knowledge of the product offering provide will a superior
experience for you and Starbucks, that's also a part important for company turnover.

And another factor that also affects the Starbucks company is the
environment. The following are the most typical factors in the new product
including: Political, Economic, and Environmental...
• Impacts of Political Factors on Starbucks
The main political factor is about sourcing the raw materials, the company wants to
adhere to social and environmental norms. It is difficult to find the quality of raw
materials. This is gives importance to fair trade practices.
• Impacts of Economic Factors on Starbucks
Some other economic factors which can affect Starbucks are:
-

Local currency exchange rates

-

Local economic environment in different markets

-

Taxation level

• Impacts of Environmental factors on Starbucks are:
-

Environmental rules and regulations

-

Environmental disasters and in other store produce coffee

-

Starbucks must ensure does not violate any laws and regulations in the
vietnamese coffee market

-

The competition of other famous brands

PRODUCT
Starbucks has a big menu like beverages, bakery food, fruit & snack plates,
breakfast and Nutrition but the major product is brewed coffee.
With more and more drinks and food products being launched, Starbucks products
are increasingly available to meet the needs of our customers. And as of May 2018.
Starbucks reports better-than-expected revenue: The coffee chain estimates
revenues to reach $ 100 million, with total revenue of $ 6 billion and forecasts that
the stock will reach a trading range of $ 0.53 per share.

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The following are some illustrated products and revenue charts in 2018 and in the
future of the starbucks company.


Coffee Americano

Coffee Latte

Coffee Mocha

Caramel Latte

( 70.000 đ)

( 75.000 đ )

( 80.000 đ )

( 80.000 đ )

Cappuccino

( 60.000 đ )

( 65.000 đ )

Chocolate Roll

Caramel Macchiato
( 65.000 đ )

Fruity Cinnamon Roll Nutella Marble

( 50.000 đ )

( 55.000 đ )

Earl Grey

Chamomile Blend

( 30.000 đ )

( 35.000 đ )

( 50.000 đ )

Speermint Green
( 35.000 đ )

Asian Dolce Latte
( 60.000 đ )

Slice Coconut Mango
( 50.000 đ )

English Breakfast
( 20.000 đ )

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Hazelnut Latte


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A REVIEW OF COMPETITION

Starbuck vs Trung Nguyen Coffee
Starbucks Corporation has been the most successful coffee chain in the past few
decades using their aggressive expansion strategies to push out much of its
competition.
They are currently leading the retail coffee market with selling their coffee
for a premium price to increase their profitability.
One of Starbucks major competitors in this ad campaign was Trung Nguyen Coffee.
In Viet Nam, Starbucks coffee is a stand-out brand,new trend to catch,but quite
luxury,very confined class to enjoy…
+

Teenagers : prove and feel proud of themselves

+

Young aldult : widen knowledge, experience and evaluate international brand

+

Foreigners : look for local home tastes and enviroment.

In Viet Nam, Trung Nguyen coffee is popular, trust worthy, suitable for most
classes…
*TRUNG NGUYEN*
- The first Vietnamese franchise of coffe houses, built a franchise network of more
than 10,00o cafés in the country.
- Wide distribution channels. Have coffee shops inside famous buildings and
malls which have large amount of employees and people.
- High potential to improve in world's market. Easy to penetrate Asia coffee's

market. Expand brand.
- Good quality products such as Creative Coffee no. 1, 2, 3, 4, 5, Legendee,
Passiona and Weasel.
- Captured and successfully launched a series of consistent youthful style.
- Apply price discrimination.

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- Cannot control all the partners.


- Missing a top leader in the field of creative and innovative style to keep the
system consistent.
- Focus too much on wide development of the brand and forget to develop image
and style, design furniture, etc.
=>Lose unique advantages that have helped them leveled up.
- Remains on the list of leading coffee companies in Vietnam.
- Become the International brand. Trung Nguyen also has many opportunities and
advantages among foreign comers to attract capital and better cooperation with
Asian countries.
- Create and improve images of stores. Improve franchises in Asia.
- Confusion of policy and strategy as well as management.
- Lost market share, loss of orientation and confusion of policy and strategy as
well as management.
- Improve quality and create new flavors.
- After a few years being used to Vietnam market, foreign comers will be more
powerful.
- Sponsor for variety show ( Dancing celebrities, Inside VN, Giving strength to
exam seasons Tiep suc mua thi...)
•

Broadcast weekly on TVs .

•

Promote products .

•

Brand recognition .

- Capture the tastes of consumer, produce the product aims to please the average
taste of undifferentiated audience.
- Upgrade positions - become the 3rd home ( besides consumers' house and
company) to help customers feel themselves at home, relaxed and comfortable.

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Trung Nguyen saw a growth rate of 50 per cent last year. They will restructure their
sales and increase new products. Trung Nguyen aims to develop Buon Ma Thuot
city as a ‘Kingdom of Coffee'. they aim to dominate the domestic market and
improve market share as well as increase coffee consumption in Viet Nam.


Trung Nguyen have applied advanced technology in coffee production from
Germany and Europe to improve crop processing, packaging and marketing.
Trung Nguyen hope to build a ‘Kingdom of coffee' in Buon Ma Thuot to help
contribute to great growth for the coffee sector in Viet Nam. The country's coffee
industry could achieve $20 billion in exports each year.
Although rising prosperity in Vietnam means there are opportunities for domestic

growth, Trung Nguyên is under pressure from competitors.

Starbuck vs Phuc Long
Not long after Starbucks entered Ho Chi Minh City, the country’s southern
business hub where people drink coffee from sunrise to sundown, local chain Phuc
Long stepped up its game and presented a direct challenge to the global giant.
Phuc Long shops appeared in HCMC a short time after Starbucks set up its
first shop there in 2013, a move which in analysts' eyes means that Phuc Long
'declared war' with a giant from the US In district 1 alone, Phuc Long has eight
cafes. It also has other shops in districts 3, 7, 5, Phu Nhuan and Tan BInh, while it
plans to open the 16th shop at Aeon Mall Binh Tan.
All Phuc Longs are located in advantageous positions, either in the central
area or densely populated areas and the areas with heavy traffic. Phuc Long is in no
way inferior to Starbucks. On Ly Tu Trong street, for example, there is one
Starbucks and one Phuc Long, not far from Starbucks. Phuc Long, like Starbucks,
also has green and white color on its logo. And its shops also have modern design.
However, the selling prices are much more attractive with diversified menu, from
tea, coffee to fruit juice and food for breakfast. A worker from Phuc Long said that
there are two types of shops. One is Take away express, targeting popular
customers. A cup of medium size ice milk coffee is VND30,000, while a cup of hot
coffee VND28,000. Meanwhile, Take taway house, with three shops at Crescent
Shopping Mall, Vivo City and Aeon Binh Duong targets high income earners and
has higher selling prices.
Targeting younger customers, Phuc Long is considered a competitor with
international chain Starbucks
Phuc Long's tea and coffee factory, located in My Phuoc 3 Industrial Zone,
Binh Duong Province to cater both domestic and international demand.

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The chain has also enriched its food menu, offering traditional Vietnamese
banh mi sandwiches alongside croissants, cookies, waffles and tiramisu.


Phuc Long is a manufacturer of packaged tea and packaged coffee, and an
operator of Phuc Long Coffee & Tea Shop. Especially, with 25 coffee & tea shops
nationwide, Phuc Long has been receiving lots of praises for its beverage quality
and customer services, which has made the brand one of the most popular locations
for youngsters and travellers in Ho Chi Minh City.
Phuc Long has earned a long-standing reputation for trading in tea, and later
in coffee. Spanning more than half a century of development, Phuc Long tea and
coffee have been a household name among Vietnamese consumers. Phuc Long
products have been widely distributed to most markets and supermarkets
countrywide, and a chain of 15 coffee shops at auspicious positions. One of the
brand’s greatest successes is Phuc Long Peach Tea, whose distinctive, delectable
flavors coupled with large pieces of peach have made their way to visitors’ hearts.
With ceaseless passion and zeal, Phuc Long has always strived to offer its clients
tastiest cups of coffee and tea.
Phuc Long, which attracts youth with its diverse menu and competitive
prices, has shops located in advantageous positions in the central area of HCMC.
Where there's a Starbucks outlet, there’s a Phuc Long store to draw in those
who otherwise would be Starbucks clients, mostly upper- middle class consumers
willing to pay a few extra bucks for a cup of premium-branded coffee.

A REVIEW OF DISTRIBUTION
Starbucks Vietnam has opened its first store in Hai Phong, marking its
expansion into a third city.
Starbucks started operation in Vietnam with the opening of a coffee shop in
Ho Chi Minh City, a dynamic city with a warm and sunny climate all year round in
Southern Vietnam where people also love coffee.

Here Starbucks met the customer’s taste with its delicious coffee flavor as
well as the space to enjoy coffee. Gradually, the city residents have realised the
novelty of this world-class beverage and liked to drink it. Now Starbucks has eight
shops in Ho Chi Minh City.

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Not stopping in Ho Chi Minh City, Starbucks continued its journey to
conquer Hanoi’s market. This market was finicky and was not easy to please.
Patricia Marques said that Hanoians were accustomed to their traditional way of
drinking coffee and it was more difficult to change their habit. So Starbucks had to


attract the customers to a friendly and open space. That was the criteria Starbucks
tried to reach in this market.
From understanding the coffee drinking culture of Hanoi, Starbucks
established the coffee shops with a cozy atmosphere in the city. The shops were
designed in a nostalgic style of Hanoians. Each Starbucks shop had specific features
showing the dynamism and modernity of Hanoi and the long-standing coffee
heritage of Vietnam. The furniture and decorations which were made by local artists
and bought from local suppliers, were full of Hanoi’s culture.
The store is located at 15A Tran Phu Street, described as a vibrant district in
this port city.
Starbucks Tran Phu is a new endeavor for Starbucks Vietnam, coming not
long after the brand’s milestone of opening the first Starbucks Reserve store in
Hanoi.
Starbucks coffee is processed with a formula in accordance with the taste of
the Vietnamese people. Starbucks hopes that the unique smooth espresso coffee
with a strong flavour and a creamy taste will satisfy many Vietnamese customers.
Starbucks had to compete with many types of coffee in Vietnam, but Vietnam

with a population of over 90 million people is a large market and provides
opportunities for many coffee brands to develop. Fifty percent of Vietnam’s
population are young people, creating a market that Starbucks targets.
Starbucks arrived in Vietnam in 2013 under the management of Viet Idea
Food & Beverage, a subsidiary of Hong Kong’s Maxim Group, which is in turn part
of Dairy Farm International. It now operates 29 outlets in the country.

Region: Viet Nam
Survey time period :2013 to 2017
Special properties : fiscal years end closest to september 30

This statistic shows the distribution of Starbucks' revenue from 2013 to 2017,
by product type. In 2017, 1.2 billion VND of Starbucks' revenue came from the
sales of beverage.

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Starbucks always tries to maintain the quality of its coffee by working on
supply chain management. The company has many stores in different locations


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where it delivers the product directly to its consumers. The most of the company's
products are seasonal or specific to the locality of the store. The stores are also
located at prime locations like shopping centers and airports. It also has grocery
stores with many ice cream and coffee brands are also offered at various big grocery
stores. The company also operates as retail stores, where it provides the product to
customers. In company oriented retail stores, customer can have rich-brewed
coffees, Italian-style espresso beverages, cold blended beverages, coffee-related

accessories and accessories, pastries and confections, premium teas.


THREATS AND OPPORTUNITIES ANNALYSIS

Starbucks Coffee’s Strengths (Internal Strategic
Factors)
This component of the SWOT analysis model deals with the internal factor of
business or organizational strengths. Starbucks Coffee’s main strengths are:
1.

Strong brand image

2.

Extensive global supply chain

3.

Diversified business through subsidiaries

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.

Starbucks Coffee’s Weaknesses (Internal
Strategic Factors)

This dimension of the SWOT analysis model indicates internal factors like
inadequacies that present challenges to business development. Starbucks Coffee’s
main weaknesses are:

Higher price points

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1.


2.

Generalized standards for most products

3.

Imitable products

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 with cultural demands in some markets. Also, Starbucks Coffee’s
business is imitable 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.

Opportunities for Starbucks (External Strategic
Factors)
This component of the SWOT analysis model focuses on external factors that a firm

can use to grow its business. Starbucks Coffee’s main opportunities are:
1.

Expansion in Asia, the Middle East, and Africa

2.

Diversification of product mix

3.

Partnerships or alliances with other firms

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

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shows that Starbucks has major opportunities for global growth.


Threats Facing Starbucks (External Strategic
Factors)
In this aspect of the SWOT analysis model, the focus is on external factors that
could reduce business performance. The main threats to Starbucks Coffee’s business
are:

1.

Competition from low-cost coffee sellers

2.

Imitation

3.

Independent coffeehouse movements

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

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effects of the identified threats, especially imitation and competition.


OBJECTIVES AND ISSUES
-

 Company target
In the first step (2 years) the company has added 5 million new digitally

registered customers since April 2018 and 2 million active Starbucks
Rewards members year-over-year to 15 million, up 13 percent from the

-

previous year.
Before launching the product, the company will post ads for new products on

-

TV, social networking sites and media.
Began displaying and selling products in starbucks stores around the world,
where a large number of customers and loyal customers will be prioritized
for sale.

-

 Market objectives:
First step: ( 5 months)
+ Incresed customers, especial loyal customers about 50%
+ Have about 100 new customers in a month
+ The product are sale about 150 for Tea coffee
+ The average monthly revenue is 50%
+ Enhancing the customer care, will gain the best favor from the customer
+ Advertising costs will decrease by 10%
+ The first source of revenue for the company was about 20% of its initial
capital

-

Next step: ( 10 months)
The new product of Starbucks will be popular in the world.

Starbucks Coffee’s Vision Statement
Starbucks Coffee does not readily present its vision statement. However, a careful
reading of the company’s website reveals that its vision statement is “to establish
Starbucks as the premier purveyor of the finest coffee in the world while
maintaining our uncompromising principles while we grow.” This vision
statement has the following components relevant to Starbucks:
Premier purveyance

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1.


2.

Finest coffee in the world

3.

Uncompromising principles

4.

Growth

Starbucks Coffee’s Mission Statement
Starbucks Coffee’s website states that the company’s mission statement is “To

inspire and nurture the human spirit – one person, one cup and one
neighborhood at a time.” This mission statement reflects what Starbucks does to
keep its business running. Such mission statement has the following key
components relevant to Starbucks:
1.

Inspire and nurture the human spirit

2.

One person, one cup and one neighbor at a time

The one person, one cup and one neighbor at a time component of the mission
statement shows that the firm ensures meaningful impact on every employee and
customer. This part of the mission statement also means that Starbucks Coffee plans
to continually and gradually grow the business, one place or neighborhood at a
time.

MARKETING STRATEGY
MISSION

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Starbucks Corporation’s mission is, “To inspire and nurture the human spirit
– one person, one cup and one neighborhood at a time.” We are sensitive to the need
for a good cup of coffee under any circumstances which is why we feel passionately


about providing a Starbucks coffee creamer for our consumers. We always do our
best to provide a superior product and we value our customers who care about

having quality coffee. We strive to make our customers’ dollar go as far as it can.
We work hard to create a unique and comfortable environment within our Starbucks
stores and we hope that this new product will provide that same experience in
consumers’ homes. We seek fair and responsible profit, enough to stay financially
healthy for the future and to fairly compensate our workers.

SURVEY
The demographic breakdown is stark: a survey by YouGov last month
found that among people over 65, 70% prefer coffee to tea. Among people 18 to 29,
meanwhile, the two drinks are about even.

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Some observers are guessing that the trend toward healthier options,
especially among young people, is driving people to tea. There might be some truth


to that, given that tea very generally contains less caffeine than coffee, and is largely
perceived as the healthier option. But several studies in recent years have indicated
that coffee might be much healthier than previously thought — not only not as bad
for us as we thought, but actually good for us .

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Patricia interviewed the City Pass Guide that foreign visitors to Starbucks
Vietnam accounted for only 5%, the rest are Vietnamese. Meanwhile, Starbucks has
only two Vietnamese-style Asian-style Latte Latte and Dolce Misto. Therefore, it’s
necessary to have a richer menu which more choice. Especial for Vietnamese. And
tea coffee is the best choice at this time. Tea is a famous product of Vietnam with
good quality and reasonable price. And in a recent survey of 2000 participants.

63,4% of them are enjoying tea coffee. 39.7% said that they wanted to try this new
product ò Starbucks


TEA COFFEE
(A NEW PRODUCT OF
STARBUCKS)
Our marketing strategy would aim to make Starbucks Tea Coffee available to
a wide range of consumers. To accomplish this, we would build relationships with
target customers and promote the affordability. We have positioned our product at
the highest quality offering status at affordable pricing. Our presence in these select
retailers will increase awareness and accessibility of our product to our specific
market segments that we wish to target. Because Starbucks product offerings
concentrate on quality at affordable pricing, Target is a natural selection in reaching
appropriate potential customers.

This product is expected to be launched in Vietnam market before expanding
service worldwide. This section outlines a specific and comprehensive strategy base
on some following factors:

-Value for customers
-Target markets
-Positioning
-Product strategy
-Pricing strategy
-Distrybution strategy

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-Marketing communications strategy and marketing organization

VALUE FOR CUSTOMERS

The main value of tea coffee is its quality. By offering them suitable
products, value and satisfaction can be created for existing and potential consumers.

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The first, tea coffee is a new and strange product in the market. As you know,
Starbucks is an American global coffee company; it is the largest coffeehouse
company in the world. But this brand is just the fourth most visited coffee chain in
Vietnam. In Vietnam, there are a lot of people love tea. Not only that, tea coffee is a
fairly new product in the international market. So it’s possible to expect on the
success of tea coffee all over the world.


TARGET MARKETS
Segmentation refers to dividing the market into similar groups. For dividing
the market into similar segments company has to conduct market research so that
they get to know about the needs of individual customer. As the company is a
leading brand of coffeehouse and offers different energy drinks, therefore it has
selected upper-scale of the coffee market as per its comfort rather than its
convenience. The company can segment its market as per demographic, geographic,
psychographic and behavioural factors. In its demographical segmentation it can
divide market as per age, gender, income group, occupation and family life cycle. It
can offer energy drinks for different age groups such as kids, teenagers, adults and
senior citizens. Most children prefer sweet drinks and teenagers like spicy snacks
and drinks. Adults and senior persons prefer tea and customers from other age group
like coffee. The market can be segmented as per gender where males prefer hard

drinks and women want to have soft drinks. If company goes for geographical
segmentation then it can divide market as per population size, region climate and
city size. In countries where weather condition remains cold it can offer hot coffee
and in hot climate areas cold energy drinks and cold coffee can be offered. In this
way firm can segment its market as per various demographic and geographical
variables.
Because this product will be launched in Vietnam market before expanding
service worldwide, the target market which we choice is Vietnam (geographic). And
the potential customers are someone like coffee and tea. Especially, children,
women and older people. Coffee is either a super healthy beverage or incredibly
harmful. Maybe you knew about some benefits of coffee. Do you know that you
shouldn’t drink too much coffee? Because it contains caffeine, a stimulant that can
cause problems in some people and disrupt sleep. If they have given a field of a new
product of coffee which is delicious and good for the health by reducing caffeine
and adding tea, what will happen?
Target customers are also who value the Starbucks brand.We are definitely
out to meet the needs of the high class coffee drinker who is willing to pay more for
quality and prestige in an exceptional cup of coffee . In this particular market, we
desire a customer who appreciates the quality of the tea coffee and the simplicity in
the natural ingredients.
• Starbucks Loyalists
• Adults (35-54): Adults aged 35-54 account for 42% of the total coffee
market. Due to the 40+ hour work week, coffee is a part of their daily
routine.

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• Students (18-24): The number of students who drink coffee has
increased

10% in the last two years. This brings a total of 40% of students who drink
coffee daily. This is typically the age when individuals begin to drink
coffee which provides us with the opportunity to gain new brand loyalty
with students who are image conscious.
• Target Corporation Shoppers: These shoppers care more about the
value
of a product than price. According to the Target website, people shop at
Target for the competitive prices and value, in addition to selection. Our
product will seamlessly fit in to the upscale, trendy array of products that

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Target has to offer.