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Starbucks target market case study
Starbucks target market case study
Starbucks Total Quality management strategy
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Target market segments
There are four different market segmentations that Starbucks coffee has targeted to establish its brand equity in the industry. First of all, Starbucks coffee’s demographic segmentation targets men and women in between the age of 25 to 40 years old. (Huff Post, 2013) However, later on the company decided to modify its segmentation to also target students. Starbucks coffee’s geographic segmentation is to target individuals that either goes to the mall, hotel, restaurant and college. Starbucks coffee’s psychographic segmentation targets sophisticated individual who believes in a healthy lifestyles. For last, Starbucks coffee behavioural segmentation is to target individuals who do not care paying the extra price for the higher quality products.
Differentiation points
What make Starbucks Coffee brand different from other competitors such as McDonald McCafe and Tim Horton’s Coffee is that they have higher quality products. They also have higher prices that people don’t care to pay for since they do know that the coffee will be worth the price. Starbucks Coffee brand is also very eco-friendly which is also represented through the meaningfulness of their logo. (McGrath) Their product uniqueness effectively communicates Starbucks Coffee brand.
Positioning
Starbucks Coffee used the unique product positioning as their strategy to represent their brand. Their strategy well represented their product by having uniqueness of their coffee supply. There have exported coffee beans from Ethiopia while their competitors McCafe and Tim Horton’s Coffee only have regular coffee beans of lower quality. This uniqueness has created a strong competitive advantage on the coffee retail market.
Relevance
There are many factors that ...
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...d Marketing Mix. Retrieved from Scribd: http://www.scribd.com/doc/25781010/Starbucks-Targetting-Positioning-and-Marketing-Mix
Starbucks Coffee Company. (2011). Starbucks Company Timeline. Retrieved from Starbucks: http://globalassets.starbucks.com/assets/0e40b1ea48b34b82ae0a987175f1df25.pdf
Starbucks Corporation. (2014). Mission Statement. Retrieved from Starbucks: http://www.starbucks.ca/about-us/company-information/mission-statement
Starbucks Corportation. (2014). Our Brands. Retrieved from Starbucks: http://www.starbucks.ca/careers/brands
Tampon, V. (2013, April 03). Brand Audit: 5 Things A Small Business Can Learn From Starbucks. Retrieved from Digital Philippines: http://digitalphilippines.net/brand-audit/
Trendick, C. (2011, September 20). Stakeholder Analysis. Retrieved from SlideShare: http://www.slideshare.net/catjo1966/stakeholder-analysis-september-2011
The key to its success lies not only in the quality of its products but also the ability to differentiate itself from the competition. With Starbucks, it has always been about quality. The company manages stringent quality control measures for sourcing the finest coffee beans, roasting processes as well as customer service and ancillary products. Furthermore, differentiation is key to market control and Starbucks is unquestioningly the most differentiated specialized coffee brands in the world. From the design of its coffee shops to the music played to the types of products offered, everything has a touch of uniqueness.
Datamonitor. (January 2005). Starbucks Corporation. Retrieved September 22, 2006 from, http://www.investor.reuters.com from University of Phoenix Library.
Starbucks in today’s date is the world’s largest coffee chain. The brand which was founded in 1971 has established itself as the world’s leading specialty coffee brand with its more than 13000 outlets in 39 countries. The company has had an impressive record of sales and growth also. Something that differentiates Starbucks from others is its coffee as well as the special Starbucks experience. Starbucks serves more than just coffee. It is also known for the relaxing ambience where the customers can relax and sip with their friends. Starbucks is famous for its genuine service, inviting atmosphere and of course superb coffee. The company is committed to quality and it is due to its commitment to quality that its product pricing is also premium. However, despite the premium prices of its products the brand is loved around the world by the customers for the quality of products that it serves.
CEO of Starbucks, Howard Schultz, originally had the idea that Starbucks would have the community/traditional feel in their stores, and still serve high-quality coffee (“Our Heritage” 1). Adding an Italian vibe to the coffee shops, keeping its traditional logo, which is based on a mythical creature, and advertising some of its products in a more “traditional” style accomplished the first goal. For an example, Starbucks recently created a commercial about their Refreshers, which was about cooling someone down in the summer time, with the scenery of Tuscany in the background. Serving high-quality coffee was obtained by ordering coffee beans from where they naturally grow and giving it a perfect roast to give to a customer. It was a marketing strategy that helped Starbucks grow and transform its commodity chain to support gathering more raw materials for a cheaper and more efficient way.
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.
Starbucks Coffee, Tea, and Spice opened its first store in April 1971 in the Pike Place Market in Seattle, by owners who had a passion for dark-roasted coffee that was popular in Europe, but hard to find in the U.S. (Harrison et al., 2005; Venkatraman & Nelson, 2008). The company’s mission was to provide Seattle with the best access to dark-roasted coffee, and sought to educated customers about the product. As a matter of customer education and acceptance of the product, Starbucks grew and expanded into the successful domestic market it is today. Much of this success can be attributed to a focus on the total customer experience and s...
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.
Schultz, Howard, and Joanne Gordon. Onward: How Starbucks Fought for Its Life Without Losing Its Soul. New York: Rodale, 2011. N. pag. Print.
Emphasis on quality, Starbucks Experience, brand image, and important suppliers to dispute lower price contributions to competitors hence increasing profits
Starbucks is currently the industry leader in specialty coffee. They purchased more high quality coffee beans than anyone else in the world and keep in good standings with the producers to ensure they get the best beans. Getting the best beans is only the first part, Starbucks also has a “closed loop system” that protects the beans from oxygen immediately after roasting to the time of packaging. They did this through their invention of a one-way valve which let the natural gasses escape but keeping oxygen out. This gave them the unique ability to ensure freshness and extended the shelf life to 26 weeks. Starbucks isn’t only about the coffee, it’s also about a place where people can escape to enjoy music, reflect, read, or just chat. It is a total coffee experience. The retail outlet has been responsible for much of Starbucks growth and has contributed substantially to their brand equity.
Starbucks is an international coffee house and it was created in 1971 when they opened the first store in Seattle, Newcastle. Currently, they own 21,000 stores in 65 different countries of the world, and their passion for the great coffee, excellent service and community interaction exceeds cultures and languages (Starbucks, 2014). This company is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of speciality coffee. Its main slogan: “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time” (Jurevicius, 2013).
To stay true to its mission, Starbucks must implement a marketing research plan that will bring about a clearer perspective to the ins and outs of its core customer for the proper introduction of the new “Coffee of the Month” program. The implementation of this plan requires Marketing Team A to analyze the proper marketing research tools to use for this project, including a comparison of the selected tools. Qualitative surveys, demographic research, customer research panels, and secondary data mining are the market research tools that Starbucks is considering for studying its new research project. Furthermore, Marketing Team A will analyze the most, and least, applicable research tools to use before moving forward toward unveiling its proposed “Coffee of the Month” Program.
Starbucks case study: background 1971-87; private company 1987-92. (1997). McGraw-Hill Companies. Retrieved March 20, 2007, from the McGraw-Hill Companies website: http://www.mhhe.com/business/management/thompson/11e/case/starbucks-1.html
Starbucks is a worldwide company, known for is delicious brews of coffee and seasonal varieties of tasty drinks for any occasion. Starbucks opened with two main goals, sharing great coffee with friends and to help make the world a little better. It originated in the historic Pike Place Market of Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. The creation of Starbucks’ name came from the seafaring tradition of early coffee traders and the romance evoked from Moby Dick. At the time, this individual shop specialized in the towering quality of coffee over competitors and other brewing services enabling its growth to becoming the largest coffee chain in Washington with numerous locations. In the early 1980s, the current CEO Schultz saw an opportunity for growth in the niche market. After a trip to Italy he brought back the idea of a café style environment of leisure and social meetings to the United States we now see in Starbucks locations today. Schultz ultimately left Starbucks to open his own coffee shop, Il Giornale which turned out to be a tremendous success. Fast forward a year later, Schultz got wind that Starbucks was going to sell all their components of Starbucks including their stores and factories, he immediately acquired the funds to buy Starbucks and linked both operations. Within five years he was able to open more than 125 stores starting in New England, Boston, Chicago, and gradually entered California. He wanted Starbucks to be a franchise system based on the mission of telling the truth and emphasize the quality,
When I saw this discussion, I couldn’t help but think of Starbucks and the impact they’ve made throughout their 45 years of establishment. I worked with them for about 7 years and saw how unique they were from your everyday coffee and latte spots. A retail company with thousands of coffee shops in the US as well as in other countries, this particular retailer has been able to catch the eyes of all ages as well as locations throughout the world. For example, today college students utilize Starbucks locations to study rather than go to a nearby library. Starbucks is also known for its best coffee and espresso drinks (Latte or Frappuccino) and with one of its delicious espresso 's any student or just a person stopping in to enjoy its lounge area where there is free Wi-Fi is awesome! Starbucks lifecycle has made a 360 turn around and been revamped twice to accommodated the growing market. Customizing their brand to fit more in with everything and not just one thing. By doing this they’ve created multiple product lifecycles within their own lifecycle as a corporate company.