Topics: Starbucks, Coffee, Coffeehouse Pages: 5 (2627 words) Published: November 2, 2014

Market Analysis
---Take Frappuccino Blended in Starbucks as an example
Student Number: LUN ZILUO p13000985
Module: Frappuccino Blended in Starbucks

TOC \o "1-3" \h \z \u Intro Paragraph PAGEREF _Toc378344136 \h 2Business Overview PAGEREF _Toc378344137 \h 2Commentary on Situational Analysis PAGEREF _Toc378344138 \h 2Commentary on Frappuccino Blended PAGEREF _Toc378344139 \h 3Market Segment PAGEREF _Toc378344140 \h 4Olympics 2016 Promotions PAGEREF _Toc378344141 \h 4APPENDIX A--- PRESTCOM Analysis of Starbucks Situation PAGEREF _Toc378344142 \h 5APPENDIX B--- SWOT Analysis of Starbucks Situation PAGEREF _Toc378344143 \h 6APPENDIX C---The Total Product Concept diagram PAGEREF _Toc378344144 \h 7Reference PAGEREF _Toc378344145 \h 7 Intro Paragraph

This report is used to analyze the Frappuccino Blended of Starbucks in coffee shop market. An in this report, it will evaluate the current situation for the product in UK and list the reason that why it have been the symbol of Starbucks. It also analyzes the success of Starbucks in coffee shop market. All kinds of analytical methods such as PRESTCOM, SWOT and Market Segment will be used. It will also give product concept of Frappuccino Blended in detail and give commentary on the product. Besides, the report will recommend two promotion activities for Starbucks to increasing profit as part of their Olympics 2016 campaign. Business OverviewFrappuccino is a trademarked line of blended coffee beverages sold by Starbucks. It consists of coffee blended with ice and various other ingredients, usually topped with whipped cream (Coffee Wiki, 2012). And now, Frappuccino have been the signature drink of Starbucks and have many crazy fans. Starbucks Corporation is an American global coffee company founded in 1971 and coffeehouse chain based in Seattle, Washington (Wikipedia, 2014). And Starbucks is the largest coffeehouse company in the world and have thousands of stores around the world including 806 in the United Kingdom. Starbucks mission is to inspire and nurture the human spirit—one person, one cup and one neighborhood at a time, so its customer target is middle class. Starbuck wants building a special ‘Starbuck experience’ and the best coffee service for customer, they try to provide customer a third space which is a comfortable warm place expect people’s work place and living housing. It means that UK is the main market of Starbucks. The reason that Starbucks pay so much attention to the UK coffee shop market is that coffee shop market in UK is continuing to defy the recession, with a current growth rate of more than several times that of the British economy. Commentary on Situational AnalysisAll kinds of factors that affect the Frappuccino Blended of Starbucks are listed in APPENDIX A. And the most important external factor is political situation. In this part, the report will analyze how the change of political strategies influent the profit of Starbucks. Starbucks make enormous legal profits by taking advantage of the legal loopholes in UK. But it finally paid huge cost after that was exposed. According to Reuters (2012), Starbucks has been telling investors the business was profitable, even as it consistently reported losses. Starbucks use this way to pretend to government that it had lost to avoid paying taxes. But it truly made profits by transfer capital to other countries which have lower tax rate. What is more, there is no suggestion Starbucks has broken any laws. How smart Starbucks are! That is good political situation bring enterprise profits. But a few years later, after what Starbucks done have been exposed, there are huge impact to Starbucks in UK. English people got angry about that. They don’t care if Starbucks is lost. Only they care is that Starbucks has avoid taxes, which has direct connection to their own profits. So, there came to tax avoidance campaign by English people in the end of 2012. In this campaign, people tried not to buy...
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