Starbucks Corporation

Is an international coffee and coffeehouse chain based in Seattle, Washington, United States.
Starbucks is the largest coffeehouse company in the world, with 16,635 stores in 49 countries,
including 11,068 in the America, nearly 1,000 in Canada and more than 800 in Japan. Starbucks
sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, coffee beans,
salads, hot and cold sandwiches, pastry, snacks, and items such as mugs and tumblers. Through
the Starbucks Entertainment division and Hear Music brand, the company also markets books,
music, and film.
The company has realized that people don’t only come for coffee, they come for
atmosphere. Starbucks strives to perfect the relationship with the working class by the service
timely, accurate and friendly as possible.
Market segmenting is dividing the market into groups of individual markets with similar
wants or needs that a company divides the market into distinct groups who have distinct needs,
wants, behavior or who might want different products & services. The process of segmentation
is distinct from targeting (choosing which segments to address) and positioning (designing an
appropriate marketing mix for each segment). The overall intent is to identify groups of similar
customers and potential customers; to prioritize the groups to address; to understand their
behavior; and to respond with appropriate marketing strategies that satisfy the different
preferences of each chosen segment.

Market Segmentation
Starbucks focuses on what it calls its “core customers,” college educated with an average age of
42. As the children come to an age, they will go to Starbucks because their parents have been
doing so.

Positioning
Starbucks is listens to the needs of the educated by devoting its business and research by
developing ways to cater to this group’s needs and wants. Starbucks has positioned itself so
that it keeps customer satisfied from the minute they walk in, to placing an order, to receiving a
cup of fresh coffee within a timely manner, and finally to either being able to relax and feel at
home in the rich ambiance that is offered or moving on with their daily routine.

Starbucks aims ‘to inspire and nurture the human spirit’

Starbucks aims to provide quality coffee in a relaxed atmosphere for those seeking a
respite between home and work. Also, since orders are placed much like in an Italian espresso
bar, grab-and-go consumers can bring coffee and a snack home or to the office. The ambience
and service is the same everywhere. This is the vaulted Starbucks Experience, an elusive halo
that competitors desire, but have trouble duplicating.
“But the essence of Starbucks is not about the coffee, although it’s great coffee. It’s
about the coffee-drinking and the coffeehouse experience,” says Hayes Roth, vice president of
marketing at Landor Associates, a consultancy that has advised Starbucks on branding strategy.

Target Market
The target market is college students and business students in general, as well as
individuals from the baby boomer generation to generation Y. The Starbucks is mainly adult
focused and aims to connect to their customers, communities and children through various
advertising tactics. Vast majority among these people come from the urban areas, where one is
willing to go the extra mile to purchase costly gourmet coffee.

Repositioning the Brand

Starbucks Coffee brand is one of the most successful brands of the world and here comes a new
strategy allowing the customers to perceive the brand in an entirely different manner. The
Starbucks now states their positioning statement as

‘Inspiring the delighting taste of life’

Or it could be simply be simply said the Starbucks coming with an ultimate customer experience
allowing to individuals to capture their time spent in stores as pleasurable and memorable.
Improving the Starbucks not only means improving the product but the customer
services giving the order accurately delivering the most efficiency of employees. In order to
create delight for customer the employees of Starbucks are now better trained to handle
customers and make their experience enjoyable.
Starbucks now has bill boards in the residential areas too, focusing more on customer
awareness and telling them it is not just coffee, it is a soul relaxing place where people gather
to meet ones of their community to get the most unforgettable experiences of their lives.
Starbucks Coffee is already selling a product that is the second largest traded
commodity of the world. Starbucks is known for its innovation and strong product
differentiation within its industry therefore there are no doubts in its success. However, the
company now has variants designed for the old ones to cop the number of customers left
behind.
Starbucks now gives another pleasurable experience to customers in the drive-thru by
playing light pleasing music tracks for those who are waiting in the line. Nobody gets bored now
and the customers now enjoy Wi-Fi in the drive-thru area too. The main city stores customers
are now pleased by large multimedia screens informing the customers about other Starbucks
products i.e. HearMusicTM.
Target Market
Starbucks offers coffee as an excellent experience with spectacular services to
youngsters as well as the professionals. Emphasizing the mature ones along the oldsters is the
new strategy of Starbucks to capture the remaining ones. Since coffee consumers consist of the
market that includes the entire user of the rural and urban areas, the company offers variants
for people of all ages to generate more revenues, creating valuable relationships and grabbing
their hearts.

The Product Life Cycle of Starbucks Coffee

Competitors
Marketing Map