The key environmental factors that affect the success of Starbucks products in Macau

Essay by doramiUniversity, Bachelor's December 2004

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Whenever we talk about where's coffee is the best, the first image flash into our mind would be the name "Starbucks." For the key environmental factors that affect the success of its products in Macau:

Demographic

Years ago, Starbucks started up in Macau. It had been a trend to try the Starbucks coffee. Almost everyday a queue of students was lined up in front of the shop at that period of time. However, after a while, the tide was quenched. So we can see that the Starbucks does not really focus its market on students actually. Indeed, one of its main target markets is those labor force. We are able to recognize that all of the products of Starbucks, charge high prices. Its target customers are adults that can afford the prices. Furthermore, we can notice that some of its customers would be the tourists passed by since the shop is located in a sightseeing spot.

Probably, Starbucks expects more male customers instead of female. It is very obvious that female customers would not prefer its cakes and coffee with such high fats and calories.

Economic

After the Asian Crisis, consumers in Macau spend even more carefully. Starbucks needs to provide coffee of higher quality with more reasonable price. Starbucks is attracting increasing numbers of local customers as well, mainly upwardly mobile white-collar workers, who are more willing to spend. Approximately 70% of Starbucks' customers fall into this category. Others are the tourists due to the individual visit scheme. Although Starbucks attract some white-collar workers and tourists, Macau people spending on food and drink has declined starting from the past several years. Starbucks needs to pay attention on this change and make suitable adjustment so as not to affect the sales of its coffee.

Cultural

Most often...