Coffee Drinking Habits in UK Assignment Example | Topics and Well Written Essays - 2000 words

Coffee Drinking Habits in UK - Assignment Example UK's market is predominately penetrated by tea and fruit juices and tea is the third largest non-alcoholic beverage used in the country. However, trends are changing as a new coffee culture is emerging in the country. Most and most consumers now prefer coffee because of the relaxed experience offered by the branded coffee chains. Initially, the trends emerged in the urban areas of the country however, it is picking up in the rural areas also thus the future may provide a much bigger market to cater. It is however, important to note that due to current economic crisis in the country with the possibility of negative growth in 2009, the consumers may reduce their spending on something which can be produced in their own homes too. It is also critical to note that consumers are increasingly becoming ethical in nature and prefer such organizations which offer products and services which are based on the sustainability products. As discussed in the case study that Starbucks leave its water taps open all the time give the whole issue a more ethical dimension and indicate that the future consumer buying patterns may be shift towards having more ethically responsible organizations with an strong sense of conserving the natural resources of the planet. Starbucks is predominately American in taste and it has been strong speculated that the growth can doubled if the taste is tailored according to the European flavor preferred in EU region. Europe, as a region has a very strong tradition of drinking coffee according to their own individual tastes and consumers are certainly missing that element into the coffee cup offered by Starbucks thus the product development trends may be directed towards creating the coffee tastes which suit the European consumers. Significance to Starbucks The market intelligence or market research is critical for the success of the firm because it provides them a larger base of information to decide upon where to invest or not thus market information basically provides insight into as to how to spend their money wisely and the information is used to the maximum benefit of the firm. (Callingham).From a marketing perspective, understanding the market is one the key steps in order to make an entry into the market. Understanding the market therefore provide a deeper insight into the size of the market. Based on this, marketers often tend to segment the same into different niches according to their individual target market based on different factors such as demographics, psychographics etc. As discussed above that almost 20 million people living in UK belong to working class with different levels of incomes earned therefore Starbucks has virtually a market which has 20 million customers to satisfy and with the increase in trends for preferring coffee over the traditional non-alcoholic drinks such as tea and fruit juices, the