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Business Report

University: Blackburn College

  • Unit No: 2
  • Level: Diploma
  • Pages: 14 / Words 3608
  • Paper Type: Business Plan
  • Course Code:
  • Downloads: 10719
Organization Selected : Starbucks


Overview of research

Marketing is an effective concept which are related to different concepts and philosophies that includes selling concept, production concepts and product concept. In this, consumers are one of the most essential thing at the time of operating and regulating business operations. One of the important strategies is market segmentation which is customer oriented philosophy where no firm can produce and satisfy their buyers needs and wants effectively. Sales performance use raw data which is concern about the number of customers a sales related to the number of actual sales. This will show the proportion of customer loyalty to the business and a specific worker. Along with this, it will enhancing sales performance which can automatically increasing the number of desired buyers. Marketing effect and segmentation is always a customers oriented philosophy, this is consistently with the marketing concept. Market segmentation is the procedure of dividing market into different categories and they are select desired customers who are able to purchase their goods and services. In addition to this, it will describe research aims and objectives which can be helpful in explaining and describing regarding research topic. Literature review explain different authors and scholars views or reviews regarding investigation theme. This will help in analysing various respondents view points and opinions regarding research topic.

Background of research

Starbucks is an American coffee company and large coffee house chain, Starbucks was established in Seattle, Washington in the year of 1971. The company operated and regulated in around 30,000 locations in all across the world. Starbucks locations serve and deliver hot an drinks, whole bean coffee, micro ground instant coffee which is known as VIA, espresso, caffe latte, full and loose leaf teas including Teavana tea products. Since 2000s, the third movement coffee maker have targeted quality minded coffee drinkers which hand made and it is based on lighter roasts. In the end of the year, Starbucks increasing the number of stored to 17 and furthered its location span by entering Chicago and Vancouver. In current time period, Starbucks operate and regulate international stores which is around 5113 and 11567 in the United states.

Significance of research

The importance of this research is to analyse the impact of market segmentation on sales performance in the beverage industry. Starbucks used market segmentation method which assist in dividing targeted customers into different categories who are capable for purchasing their goods and services. This study will be great benefit to consumer and individuals in their purchasing pattern. Market segmentation help company in gaining a competitive advantages in the whole market place by analysing different customers groups and targetting particular goods to meet with their demands. It enables a business to provide customers needs and wants in better manner regarding company products and items.

Research Aim

Aim: “To analyse the potential effects of marketing segmentation on sales performance in the beverage industry. A study on Starbucks Coffee”.

Research Objectives


  • To analyse the key benefit of marketing segmentation.
  • To evaluate the major impacts of marketing segmentation on sales performance of company.
  • To identify various ways that can used by company to enhance sales performance.

Research Questions


  • What are the key benefit of marketing segmentation ?
  • What are the major impacts of marketing segmentation on sales performance of company?
  • What are the ways that can used by company to enhance sales performance ?

Literature Review

A literature review is the type of review article. A literature review is scholarly paper which includes current knowledge involves essential analysis and findings as well as theoretical contributions to specific topic. Literature review are secondary methods and sources and it do not report new and original experimental work. It is the basis of research in every academic field. A narrow scope literature review include as a part of peer reviewed journal article which present new investigation, serving to situate current study within body of accurate literature and this is provide in the context of reader. A literature review is the search and evaluation of available literature in the given subject and topic area. It is the simple summary of the sources but it is usually has an organisational pattern and integrate with both summary and synthesis. This is provide a new interpretation of old material and it will combine with old interpretation effectively. The main focus of an academic research paper is to develop and formulate a new argument and an investigation paper is likely to include literature review as one part of the research.

Key benefit of marketing segmentation

Customers are the king of market and to identify the real kings from it, the necessary task is to get an appropriate segment to approach. Market has diverse in various proportion, as the taste and preference of consumer, loyalty towards a product, convenience good, price sensitive consumers and many more. These forces are making a tough competition in market to handle a situation or to attract a particular market. To overcome from all these situation, market has come-up with a game plan to ahead of the pack that is called market segmentation. Market segmentation is a process by which an organization divides its whole consumers into a smaller group by finding an appropriate trait based on age of an individual, income of a person or personality traits to offer sale. It clarifies the exact segment on which a company need to target, it takes place by finding the nature of product which has launched in market to offer. Starbucks adopt different market segment such as mono segment positioning, adaptive positioning, and sandy positioning.

Market segmentation can also be done by different aspect to get an exact customers for its product. It help in growth of a particular sector and establish a market by its own. It boost-up a business in a way to get a stability in market and starts building a brand into it as to offer product to them. It comprises a big market into different sectors with similar traits which is based on the following:-

Demographic segmentation:- Dividing a market on the basis of different traits such as age of person, education of a consumer, gender of people, occupation, nationality and many more. It clarifies the market in a particular trait to whom a product should offer. Starbucks targets males & females, which has different stages such as bachelors, newly married couples young etc.

Geographic segmentation:- It is the easiest segment to get a clarification on the basis of geographical boundaries, customers are to be targeted on the basis of its geographical and maintain a stability in a particular area. It showcases all needs of a particular area and different interest which develops a preference to offer a product or services and to work on marketing strategy at identifying segment. Starbucks regions are US, Canada, Latin America, etc, with an age between 22-60.

Firmographic segmentation:- It has a similarity with demographic segment as demographic work on an individual while talking about firmographic, it looks toward an organization. This segment covers many aspects such as size of a company, number of employees working on it and differentiate in addressing a business of small size. Starbucks focus on new corporate industry, which establish to boost-up a new market.

Behavioural segmentation:- It focuses on particular aspect related to an individual behaviour and the taste, preferences by which a consumer design its decision-making pattern such as lifestyle of a consumer, usage, etc. Starbucks examines hard core loyal customer who prefer to enjoying quality of coffee with an amazing ambience.

Psycho-graphic segmentation:- Consumers are divided by its lifestyle, traits related to personality, values of a particular person, opinions and interests of consumers. Starbucks focus on a particular social class which involves all middle and upper class people. Mainstreamer, Aspirer, succeeded and explorer are the target market in this case.

Impacts of marketing segmentation on sales performance of company

Every company has an aim to get maximum profit from the market. Earning a profit is not an easy task, to get ahead of the pack. It takes a lot of management work which targets a particular customer while performing its duty of consumer satisfaction. For any business, it is important to focus on customers and customer relationship management, which become a particular aim of company as to get more market share.

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From every work starts from marketing by taking initiative of digital marketing and keeping an eye on every aspect which help in introducing loyalty program. Updating digital payment platform by mobile and cards which design a plan to cover the Asia pacific region. It attracts thousand of targeted customers and starts framing a stability into a market. Starbucks gets a game plan to kill the future barriers and laid down the footprints to its growth in future. Starbucks is taking place in market by its marketing strategies and maintain a stability by taste and preference. Elevation of coffee experience, which focuses on customer's preferences and put all its effort in maintaining a stability in consumer's mind. Increase in demand by maintaining stability in preferences gives a motivation to Starbucks by which it expanded its store portfolio and focus on offering more quality with innovative discounts to attract more customers and maximize its profit.

Driving at home coffee share and occasion is one of the best impact which add-up in the success story of Starbucks. As increase in demand in market directly focusing on improving services of a company which develop a new market by driving the demand of coffee for at-home.

Ways that can used by company to enhance sales performance

Achieving success is much more important for a business as capital invested in a particular field and building brand from it, is a vital part of a business. Branding creates a value and focus on maximizing profit by increasing its customer's demand. It brings trust on merchandise and maintain a stability of a particular consumer on a product. Building brand needs many strategy which examines by different institutions and gives a very distinctive root to get a success by it. Starbucks which has planned a game plan to maintain a market.

Starbucks focus on building brand in market which help in long term stability and frames a pipeline profit model. It creates a market for the need of consumers and increases its profit maximization by different ways which is as follows:

Determine brand's target audience- Starbucks started finding its audience who supposed to drink coffee daily and from a market by its strategy. It is a beginning of framing a name into a brand by focusing on a particular market or a targeted audience. The focus in beginning is to get a specific audience for products and establish a market for it.

Establish a brand mission statement- Creating a market needs to search a proper brand mission as building brand needs to focus on its clearest expression. Before focusing on creating a brand a company should understand what values need to offer to its customers. Starbucks, which focus on its quality and direct touch, the taste of a consumer, which maintain a stability to build a trust in market.

Outline key qualities and benefits brand offers- While framing a brand, quality plays a vital role. Adopting an approach related to offer better quality in market is much more important as it defines the standard in market and kill its competitors by offering a perfect taste which market demands.

Let make brand personality shine:- An awareness which influence a market about a particular brand and gives a Brand personality spectrum. Where a product stands in market and showcase a reality to improve in market.

Research Methodology

Research methodology refers to particular method or techniques which can be conduct in order to analysis, selecting, examining and processing all information or data which are collect in respect of particular topic. In this of research is conduct in order to carry out evaluation and analysis working procedure in appropriate and effective manner. By conducting this researcher able to use their skills and ability in effective and appropriate manner. Along with this they also able to collect information and data in appropriate manner in order to conduct best research on particular topic.

Type of investigation

Investigation refer to process by which a research conduct analysis and evaluation of data which they collected. It can be done by basically two methods qualitative as well as quantitative. In qualitative method researcher collect relevant information and data by focussing on maintaining quality as well as evaluating customers view point on products and services. On other hand quantitative method is used by a researcher when they have to collect quantitative data that include number, facts and figures. For conducting respective research researcher use qualitative research method for collecting appropriate and effective data or information.

Data collection

Data collection is refers to method by which a research able to gather and collect essential data and information which help researcher in completing research in effective and appropriate manner. There are mainly two method of data collection which are explained below:-

  • Primary method– It refers methods in which data or information are collected or gather by a researcher on the basis of real and specific time or work, it is basically first time data. It can be done by various methods or techniques such as survey, focused group, interview and questionnaire.
  • Secondary method– It refers to methods in which data or information are collected from any published or unpublished sources. Methods through which researcher collect data through secondary methods are internet, books and many more.

For conducting respective project in appropriate and effective manner researcher use primary and secondary data for collecting data as well as information in effective manner.

Research Philosophy

It is also an important part of research that determine the way in which data related to a phenomenon must be collected, analysed and used. It is very broad topic because all the necessary details of the research will be discussed in research philosophies. Moreover, this is a set of phenomenon with the help of which researcher aim at understanding perspective of participants to derive valid outcomes. There are mainly two types of research philosophies which are positivism and interpretivism. In addition to this, philosophy is obsessed with the views about how the world works. Researcher in the present research used interpretivism research philosophy which involves scholar to present the factors of the study, hence, interpretivism interprets interest of human in the study.

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Research Approach

Research appropriate refers to technique or plan which is adopted by a researcher in order to collect data in appropriate manner then conduct interpretation and analysis of it in proper way in order to identify effective data and information. There are mainly two type of appropriate approaches which is adopted by researcher in order to conduct their research in proper and effective manner. By conducting these method one can analysis whole area in appropriate manner. Inductive and deductive are the two approach which can be used by a researcher. For respective research research use deductive approach, in which researcher collect and analysis current number and statical data by conducting observation and analysis. By this they able to get appropriate and authenticate data in proper manner. Apart from this inductive approach is a method which include different type of theories as well as model thorough which researcher able to gain appropriate and effective data and information. Along with this they also able to gather relevant facts, information and figures in better manner for completing evaluation.

Research Strategy

It refers to a planned step by step action which provide path to researcher's idea and thorough by which they able to conduct research in effective manner. It is essential for a researcher because by it they able to identify issues and problems in effective manner and then develop plans accordingly. Along with this they also able to develop and identify appropriate concept for research, method to conduct it, aim and objective, techniques and many more. It is also help in taking and collecting essential view and suggestions of respondents in respect of particular innovative goods and services. There are various research strategies which can be used by researcher in order to accomplishing and attaining objective of particular project in effective and efficient manner. Such as case study, questionnaire, survey and many more which can be use a researcher. For conduct this research on the topic of “the potential effects of marketing segmentation on sales performance in the beverage industry”,researcher use questionnaire method. Which is consider a research instrument which include sets of questions in order to gather or collect information in effective and efficient manner. In this method researcher develop questionnaire which is related to its topics in order to collect appropriate information in effective manner. Then they give it to respondent who answer all the questions in proper manner,after this researcher will evaluate and analysis answer in respect to gain appropriate data or information.

Ethical consideration

The ethical consideration refers to a technique which is conducted by an organisation in order to analysis as well as diagnose each and every area. By this manager of a company able to evaluate and analysis appropriate norms and rules according to situation. It is one of the essential and importance section in respect of research this is so because many professionals agencies and associates adopt various code as well as policies which create framework of ethical behaviour and guidebook for researcher. It will various aspects such as honesty, objectivity, social responsibilities, confidentiality, avoid discrimination and many more. By this they able to take appropriate decision for selecting appropriate rights and code according to situation in order to collect data and respond on it effective and efficient manner.


Q 1) Are you aware with the concept of market segmentation?

a) Yes

b) No

Q 2) What are the key benefit of marketing segmentation?

a) Retain more customers

b) Better opportunity for business growth

c) Enhancement of profitability

Q 3) What are the major impacts of marketing segmentation on sales performance of Starbucks?

a) Ease in access to customer

b) Improving distribution channel

Q 4) What are the various ways that can used by company to enhance sales performance?

a) Determine brand's target audience

b) Establish a brand mission statement

c) Outline key qualities and benefits brand offers

Q 5) Do you think, Starbucks is required to focus on other market for enhancing its sales?

a) Yes

b) No

Q 6) What are the different ways by which sales of Starbucks can be increased?

a) Ask for referrals

b) Use social media

c) Take regular based feedback from customers

Q 7) Which among the specified are considered by you at the time buying coffee?

a) Quality

b) Price

c) Taste

d) Type of coffee

Q 8) Please provide recommendation for Starbucks by which its sales performance can be improved.


According to the above described report, it can be analysed that market segmentation is the process which divided target customers into different categories towards company goods and services. In this, consumers are one of the most essential thing at the time of operating and regulating business operations. Marketing effect and segmentation is always a customers oriented philosophy, this is consistently with the marketing concept. Market segmentation help company in gaining a competitive advantages in the whole market place by analysing different customers groups and targetting particular goods to meet with their demands. A literature review is the search and evaluation of available literature in the given subject and topic area. Research methodology help an investigator in order to select appropriate method of data collection which are used for completing specific project.

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