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Target Market Analysis of Starbucks

explanatory Essay
2718 words
2718 words
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Introduction
Starbucks Company was established in 1971 with their first store in Western Avenue from that same year to 1976. They started as retailers of ground coffee tea and spices with a single in Seattle’s historic Pike Place Market. Starbucks is named after the first mate in Herman Melville’s Moby Dick and their logo is inspired by the sea-featuring a twin-tailed siren from Greek mythology. Starbucks had always wanted to inspire the human spirit. They believe in serving the best coffee by growing the coffee under quality standards. Starbucks believes rendering good services to customers is very significant to the success of the company. From just a narrow storefront, Starbucks now has more than 20,000 stores in over 60 countries and they offer some of the world’s finest fresh-roasted whole bean coffees. Their coffee houses have become a beacon for coffee lovers everywhere. Starbucks believe that they can elevate their customers, partners, suppliers and neighbours to create positive change. They call their corporate offices “a support centre” for some reasons. They try to make everything they do there to support their retail store partners and make an impact on the communities they serve. They have a research and development team of over 200 people which are responsible for the science behind their great products. They are the innovators of delicious beverages and brewing equipments. They drive the innovations, conduct the research and test products. They have a public affairs, communications and community team of over 50 people who promotes and protects the company’s reputation all around the world. They also have a partner resources team of over 500 people that help their partners all around the world become their very best...

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Ken Boyer. 2013. Behind the Scenes at Starbucks Supply Chain Operations it’s Plan, Source, Make & Deliver. [ONLINE] Available at: http://www.supplychain247.com/article/behind_the_scenes_at_starbucks_supply_chain_operations/green. [Accessed 20 April 14].

Nithin Geereddy. 2013. Strategic Analysis of Starbucks Corporation. [ONLINE] Available at:http://scholar.harvard.edu/files/nithingeereddy/files/starbucks_case_analysis.pdf. [Accessed 18 April 14]
Researchomatic ,Starbucks Market Segmentation And Positioning , http://www.researchomatic.com/Starbucks-Market-Segmentation-And-Positioning-103307.html( Accessed January , 17 , 2012).

In this essay, the author

  • Explains that starbucks was established in 1971 with their first store in western avenue from that same year to 1976. they believe in serving the best coffee by growing the coffee under quality standards.
  • Explains that starbucks works with over 18000 stores worldwide to ensure supplies are always available to their customers. starbucks started "grounds for your garden" in 1999 to make their business more environmentally friendly.
  • Explains that starbucks target market is mainly adults between the ages of 25-40, these customers account for almost half (49%) of starbucks total business.
  • Explains that starbucks target market ranges from the ages of 18-40, both male and female. the income of these people depends on the life-stage individuals are at right now.
  • Explains the starbucks distribution channel, which consists of getting the best coffee beans from the farm and then brewing it in factories. starbucks also works hand in hand with the company that produces their mugs and cups.
  • Explains that market positioning is a way to put in perception which you want to the mind of the customers.
  • Explains the products offered at star bucks include coffee, tea, cold drinks, buns, sand witches and plenty of other items.
  • Describes the things that need to be considered before the prices of products are generated.
  • Explains that each individual has his/her own wants, so they decided to price each cup of coffee according to the ingredients chosen by the customer and the total is then given out.
  • Explains that promotion of products is a must for it to sell. proper advertising, proper marketing, and creating buying incentives are needed for proper promotion.
  • Explains that a coffee shop needs to be located in an area that attracts large numbers of customers, such as shopping malls, schools, offices, and drive-through services.
  • Explains that before starbuck?s existed, a consumer would buy canned supermarket coffee as the standard means of getting coffee.
  • Explains that starbucks is one of the most recognized brands in the market and their market share seems to grow every year.
  • Explains that starbucks' products are pricy, which may be a weakness for the company because customers may choose cheaper alternatives. starbucks has to maintain their expected brand image.
  • Opines that expanding into emerging markets would be a better advantage for starbucks. starbucks recently introduced an app called mobile pour, which would attract more customers.
  • Opines that competition may be a threat to starbucks because other companies may come up with something that they lack and/or customers may prefer going to other coffee shops because of the price.
  • Explains that the bcg matrix shows different products of starbucks, and according to the matrix one will be able to tell which product is highly demanded in the market and what isn't.
  • Analyzes how starbucks has applied positioning to its market. target segmentation is the process used by organisations to target a précised category of customers with various needs, wants, and characteristics.
  • Explains that starbucks gave themselves the position as a premium product in the coffee industry by producing and incorporating high standard, initiating innovative products and offering exceptional service. schultz was aware of the fact that coffee is extremely perishable item and practised high level of quality.
  • Explains that starbucks catered really expensive products and it was in accordance with theory that the price which the customer gives to the seller for a particular quality, this price was evaluated as the quality of the product.
  • Opines that starbucks should slow down the expansion process internationally and pay more attention to marketing new products and its brand name.
  • Explains market segmentation, target market selection, and positioning. 2005. subudhi, r., 2014.
  • Explains ken boyer's behind the scenes at starbucks supply chain operations itâ€tms plan, source, make & deliver. nithin geereddy.
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