Consumer Behaviour - Assignment #1

Consumer Behaviour - Assignment #1 - Hibah Mian 122131...

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Hibah Mian 122131 Consumer Behaviour - Assignment #1 Consumer Behaviour in The News Article #1: Starbucks Canada to offer wine, beer and tapas by year’s end , Feb 04, 2015 - by-years-end.html The article describes the operation and competition of Starbucks corporation which is in the retail market for coffee and snacks. The industry has a monopolistic competition with neighbouring competitors including Tim Hortan’s and McDonald’s who have similar market shares and also create significant pressure on Starbucks. This specific industry targets and appeals to women who make up to sixty percent of Starbucks’ customers — who also do not like to hang around in bars with their friends and like more of a private, comfortable life. Therefore, this new innovation of offering alcohol by the year’s end would be great for this specific target group (perhaps women of ages 25-40) that admire more of a low profile when drinking and with friends rather than being in a rowdy environment, i.e.: bars. Trends thus far in the industry include customized, carbonated beverages in the summer to new food offerings such as warm pastries called ‘La Boulange’. Adding savoury items including soups and cheese croissants to to grilled cheese sandwiches. Carbonated Teavana teas and juices is another major chiller for the summers. The Boulange pastries also add to immense business opportunities for Starbucks as stated by French Chef and La Boulange Bakery founder Pascal Rigo in the article: “It’s a huge opportunity for Starbucks in Canada”. Because of this add-on, food sales for Starbucks have jumped fifteen percent. Customers like variety and a selection of items. More importantly, the new beer and wine innovation will be a hundred million dollar opportunity in Canada as the core customers (women) will be driven towards it rather than the typical bar setting. Furthermore, to appeal more to the market, Williams is considering delivery of Starbucks coffee and snacks in downtown Toronto and other big cities which will be tested out in the summer. Also, Starbucks Canada as stated in the article: Starbucks Canada is also planning express walk-up stores with limited offerings and drive-thrus — which will be better for people on the go and for a quicker service. Consumer behaviour is influencing the business because as stated in the article, consumers are giving feedback on what they want and what sort of new beverages they would like to try. The aesthetic appeal of the Starbucks stores itself is something major that influences the business because consumers catch their eyes on cute cafes with a ‘cool’ factor attached to it. Consumer culture, societal factors and personal factors all seem to be implied in the article.
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  • Fall '14
  • Starbucks Corporation, junk food

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