Customer Lifestyle and Behavior - Coffee Market

Topics: Coffee, Starbucks, Coffee preparation Pages: 22 (7883 words) Published: November 24, 2011
Table of Contents
Question A3
I. Target Market3
II. Market Analysis5
Size of market6
Growth of Market8
III. Market Behaviour & Lifestyle of Market8
Personality & Lifestyle8
Question B25
Starbucks and OldTown26
Lavazza and Illy26
Crimson Cup Coffee27
Online Resource30


Coffee is a drink being consumed from centuries ago first existence was found around the 9th century in Abyssinia (Ethiopia) discovered by a young goatherd (Another Coffee Ltd, 2010). During then, coffee was actually consumed in raw shape until the 11th AD when coffee was revolutionized due to the Arab accidental discovery of roasted coffee producing a surprising taste and flavour to become of what we known as, Roasted Coffee Beans (The Roast & Post Coffee Company, 2011). During the 17th Century, coffee began spreading across Europe so much so that they replaced the importance of alcohol beverage in some countries and Venice (Italy) opened the first coffee shop across Europe. Coffee firmly established in Central and South America between the 18th and 19th Century (The Roast & Post Coffee Company, 2011) (Another Coffee Ltd, 2010). Since then, coffee never stopped spreading throughout the globe and now runs through the Asian culture as well.

Today’s coffee is grown in five continents and is consumed worldwide as one of the most consumed commodities traded in the trade market. Greg Ubert, a Harvard graduate founded Crimson Cup Coffee & Tea (Appendix 1) in 1991 (, 2010). Since then, they had been supplying, roasting, and supporting independent coffeehouse with their brand of coffee. According to Crimson Cup Coffee & Tea (2011), “it joins a network of over 400 independent coffeehouse, grocers, colleges and universities, and food service operation across 28 states who proudly sell Crimson Cup Product” and opened their very first owned coffeehouse in 2007. What makes Crimson cup different from others is their unique vision of providing coffee and espresso based drinks while leaving people feeling better and they maintain a standard in order to ensure that each customer gets the best experience possible.

Coffee culture was brought to Malaysia by the British colonist in the late 18th century that has gained much popularity over the years; an attractive market to enter given the growing coffee culture (Tea and Coffee Asia, 2011). The local market is currently dominated by Starbucks, OldTown White Coffee, Illy, Lavazza etc. The trend of coffee drinking has already become part and parcel of Malaysia consumer lifestyle which provides clear cut opportunity for Crimson Cup to introduce their coffee brand into the market while uniquely positioning against its competitors.  

Question A

I. Target Market

As coffee has played an integral part of the Malaysian multi-dimensional ethic culture, the target market for coffee consumption has since changed through the years.

DemographicTarget Market
Customer Age Group9-14 years old Kids, 18-24 years old Young Adults, and Adults Customer Ethnicity Chinese, Indians, Malays, European, etc
Customer OccupationUniversity Students, Working Class, and Retiree

As seen from the above table, the target market for coffee market can be based on customer age group, ethnicity, and occupation. In the past, coffee consumption were only for adults as it was drunk for its ability to stimulate the central nervous system of our brain caused by the effect of caffeine found in coffee and tea (Botanical-online SL, 2011). However, as time passes, caffeine has been sidelined as the main purpose of consumption as fragrance and flavour of coffee beans and also different coffee drinks has taken over.

Unlike tea which comes in a variety such as green tea, chinese tea and western tea; coffee has a range of flavour as well as...
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