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Starbucks target market case study
Starbucks target market analysis
Starbucks Industry analysis
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Starbucks is famous for its cold and hot drinks that it offers to its consumers. While the product is available and useful to almost everyone, it will be important to base the research on a particular group of people while trying to measure the organization’s brand equity. The best target population will be the men and women from the ages of 25 to 44 because it contains the larger number of the target market. These populations are characterized by relatively high incomes, professional careers and are always keen on their social welfare. The rationale for choosing these people is because they can make a decision on a product they want to use because they can afford without having to ask anyone (Balakrishnan, Shuaib&Marmaya, 2009)
Part B
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Brand image is about how consumers perceive a product and the ability for the customers to be loyal to the brand irrespective of the threats from its competitors. Starbucks prides itself as the best coffee produce, and most consumers have been heard admitting that the company produces coffee that is quality and that makes users sometimes to consume even when they had not budgeted for it. Cleanliness seems to be another strategy that Starbucks uses to promote the image of its brands because customers can trust their products and knows that the company is keen enough in cleaning its environments and the utensils used for the preparation of coffee and other brands. Brand image is critical for measuring brand equity, and it is from this point of view that the company comes up with marketing and operational strategies to make it successful (Keller & Lehmann, 2006). Brand resonance is another important technique that should not be avoided because of its impact towards the study. The attachment that a consumer has to a product will help discover the relationship between a customer and a product. Identifying oneself with a product is only possible if the product is …show more content…
The question helps determine how frequent people use the brand from the organization. The frequency will help tell whether there is a good consumers association or not.
Question 2
What makes you choose Starbucks coffee brands over others? The question helps the consumer distinguish a brand from the rest.
Question 3
When you think of taking a hot drink, what brands come to your mind? The question allows the consumer to mention the types of drinks that are his or her favorites and determine whether he or she is conversant with the Starbucks offers.
Questions about brand image
Are the prices offered fair? The question helps the company realize how the customers perceive the product about price.
How do you rate pour organization is applying the corporate social responsibility? The question allows the customer to rate the company and offer recommendations on the enhancements necessary (Keller & Lehmann, (2006).
Part
Finally, this report will identify recomendations for Starbucks to minimze future loss and to compete with major competitors like McCafe and Gloria Jeans Coffee.
In relation to this case, Target Corporation depicts a brand personality among its target audience. Target Corp. is considered as the retail store that caters to the younger and more educated and well-off clientele as to compare with its rival. In a survey conducted, Target Corp. shoppers fall on a 46 years old age median, mostly female, have children at home, and attended or completed college (Target Corporate Facts, 2006). Thus, the target market is perceived to be sophisticated. However, with the corporate values the corporation applies, the brand personality serves as one of its distinguishing pro.
Coffee, one of the world’s most known beverages. Seen being drinking at work places, colleges, or in the convenience of your own home. There are a variety of companies that provide us the people with coffee. It can be your local market, bakeries, or even fast food places. 3 places that stand out and our known very well for supplying Americans with coffee is Starbucks, Dunkin Donuts, and McDonald’s. From their strategic advertising, deals, and even straight down to the design of their cups, they meet the definition of marketing. We will be examining these 3 companies using the marketing mix which consist of product, price, place, promotion and also cover value based marketing and see how these companies meet these definitions and how they satisfy their customers as well.
In 2002, unexpected findings of a market research showed problems regarding customer satisfaction and brand meaning for Starbucks customers. The situation was unacceptable for a company whose overall objective is to build the most recognized and respected brand in the world. Starbucks was supposed to represent a new and different place where any man would relax and enjoy quality time, alone or with others. But the market research showed that in the mind of the consumers, Starbucks brand is viewed as corporative, trying to expand endlessly and looking to make lots of money. This huge gap between customers' perception and Starbucks' values and goals called for immediate action.
In regards to the corporation’s balance sheet, it is necessary to place an importance on liquidity ratios to demonstrate the company’s ability to pay its short term obligations such as accounts payable and notes that have a duration of less than one year. These commonly used liquidity ratios include the current ratio, quick ratio, and cash ratio. All three ratios are used to measure the liquidity of a company or business. The current ratio is used to indicate a business’s ability to meet maturing obligations. The quick ratio is used to indicate the company’s ability to pay off debt. Finally the cash ratio is used to measure the amount of capital as well short term counterparts a business has over its current liabilities.
Question 1:When Howard Schultz launched Starbucks, who was the target market and how was Starbucks positioned to appeal to this target market?
There have been some distinguished controllable and uncontrollable elements Starbucks has encountered when entering global markets. The strategies of any company’s goals are vital to its success. This is one area Starbucks has excelled in, just as McDonald’s has in recent years. Starbucks has paralleled its branding with the actions found at any Starbucks across the world. They have an excellent company vision, which they stick to, which in turn assists their brand image. Starbucks’ image has been achieved not only through this and their massive global entrance, but through their ability to provide honest quality service.
Coffee Time is a chain of coffee bars that is popular in North America and Europe. It obtains and roasts some of the finest coffee beans and they also sell a variety of blended coffee beverages and snacks. In addition, recent trends in the global coffee business indicate that South Asia is an emerging market for coffees with a special flavor and coffee bars. Coffee Time has identified India among other South Asian economies as a bright prospect. Coffee Time is a premium brand of exotic and regular coffee flavors. For many Americans and Europeans, Coffee Time stands for the celebration of coffee. Since, the management of Coffee Time is considering the option of entering into India; they must analyze some data and come up with a research design that should answer the following:
For this organizational analysis, I decided to analyze Starbucks. I chose Starbucks because they are the leading innovators in socially impactful business activities and personally, I love Starbucks coffee! Obviously, the point of this paper is not to talk about how good their products are, but to analyze how their organization is structured and identify potential for improvement. I have never worked at a Starbucks, but I have two friends that work at the location inside of Hy-Vee in Cedar Falls. After countless hours of research, talking to my friends about day-to-day activities, and actually going to Starbucks on numerous occasions over the past few years, I knew this was the organization that I would love to analyze.
I will briefly summarize and examine issues facing Starbucks. Starting from there I will pick the most important issue and study it from different positions. In the end of my I will try to suggest what steps should be made to keep the company in continuing its quest to become one of the most recognized and respected brands in the world.
Companies use a collection of brand equities to represent their products in the market (Voolnes, 2012). Brand equity refers to the commercial value that is derived from the perception of consumers on any given brand name of particular products in the market as opposed to the product itself. Ataman (2003) notes that the effect to the consumer is in the brand name and not the product itself. Companies use logos, trademarks and a collection of other symbols to present this information to the customers. The use of these symbols is meant to try and capture the customer mindset so that they can be thinking about the company products at all times through the items they possess at home (Estes, Gibbert, Guest, & Mazursk, 2012). This can well be explained by use of the customer-based brand equity model that brings together the requirements for a publicly renowned brand in the market.
A brand audit is a detailed assessment of a brand’s current ranking in the market compared to other competitors. It provides information on how the business is performing in the market. A brand audit also aims at examining the image and reputation of the brand as perceived by customers. The two key elements of brand audit are brand inventory and brand exploratory. Brand inventory provides up to date itinerary of how a company markets and brands its products. On the other hand, a brand exploratory is an examination undertaken so as to comprehend what consumers feel about the brand. It seeks to conduct a consumer insight research in order to acquire consumers’ feelings and perceptions. This paper looks into the brand exploratory of Cadbury in terms of the customer-based brand equity (CBBE) model.
It can be defined as a unique bundle of associations within the minds of target customers. Brand image is formed in consumer’s mind from all signals and information sent by companies and other sources of information such as their knowledge, life experience, and contact with a brand. Consumers develop various associations with the brand, while based on these associations, they form brand image. In short, it is nothing but the consumers’ actual perception about the product or service. Brand image conveys emotional value and not just a mental image. It is the subjective and mental feedback of the consumers when they have a contact with a product. And also it is an accumulation of contact, observation and feelings by people to an organization. Brand image lies in consumer’s mind, which develops and conveys the product’s character in a unique manner different from its competitor’s image. The brand image consists of various features that exist in consumers’ mind like benefits and attributes. Brand attributes are the functional and mental connections with the brand that customers experience. Generally speaking, benefits are the main reasons for the purchase decision. There are three types of benefits. First, functional benefit is what a brand achieves better than others. Second, emotional benefit is that how a brand makes its product different than others, and last, rational benefits is why consumers choose this brand and believe it. Brand image can’t be created by any companies, but is automatically formed by consumers. When the consumers purchase the product, they also purchase its
By remaining true to core competency and a laser like focus effort towards quality; Starbucks has managed to analyze, adapt and create brand loyalty to their particular market and remained the top competitor throughout the coffee industry. Americans in general enjoy a good, hot cup of coffee to start their day. In any given business, seeing a torrid cup of coffee in a cup from Starbucks is not uncommon. Starbucks is one of the most popular coffee franchises in the world with locations in 62 countries. Starbucks has been around since the year 1971where they started off as a coffee bean roaster and retailer. This research paper will briefly explores, examine, and assess Starbucks quality marketing and management strategy. Additionally, this research
According to IBIS World Report the major players in the US coffee and snacks retail market are Starbucks and Dunkin’ Brands at 36.7% and 24.6% market share respectively with other competitors occupying the remaining market share of 38.7%. The industry is at the mature stage of its life cycle, has low barriers to entry and intense competition and rivalry between the players. The regulation and technological change within the industry is medium (IBIS world report)