ASSIGNMENT

On

“Case Study”

Submitted To
Ahmed Al Asheq
Lecturer
Department of Business Administration
World University of Bangladesh

Submitted By
Name: Stanly Prem D’ Rozario
ID No: WUB15/18/14/197
Roll: 197 Batch: 14th

Program: Bachelor of Tourism & Hospitality Management

Date: 17/08/2020
“Case Study”
1. Using the full spectrum of segmentation variables, describe how Starbuck initially segmented and
targeted the coffee market.
Answer:
Starbucks initial segmentation and target:
Segmentation Geographic Demographic Psychographic
Density: Urban Age: 24-44 Social Class: Wealthier people.
Gender: More likely to be female.
Target Wealth: Wealthier.
Occupation: Professional.
Race: Caucasian.

2. What changed first- the Starbucks customer or the Starbucks experience? Explain your response by
discussing the principles of market targeting.
Answer:
 The Starbucks Customer changed first.
 The biggest mistake was they initially targeting a premium coffee store but they grow it up to
fast.
 They built to many stores at one place and caused the degradation of its premium sense, it also
caused lack of differentiation which bring it on wrong positioning.

3. Based on the segmentation variables, how is Starbucks now segmenting and targeting the coffee
market?
Answer:
 Now Starbucks makes a more general market segmenting to enlarge their market target.
 Starbucks starts to target several market segments through a Differentiated Market or Segmented
Market Strategy.
 They start to offer various products for various customer such as instant coffee and ground-
flavored coffees for grocery market.
 They purchased Seattle’s Best Coffee and deliver its product for working class.

4. Will Starbucks ever return to the revenue and profit growth that it once enjoyed? Why or why not?
Answer: Yes, they will. Starbucks realize that their customer’s behavior had changed and they
immediately fix it through applying a customer-driven marketing strategy in creating value for target
customers and that is a great decision to maintain the company keep profitable.