Executive Summary

For many years, Starbuck’s has had a competitive advantage over many

other typical coffee places. Starbuck’s provides unique coffee to their customers as

well as providing exceptional customer service. Starbuck’s has been purchasing

and roasting high-quality whole bean coffee since the first store opening forty

years ago and since then have continued their competitive advantage in over

20,000 stores worldwide. This report speaks to how Starbuck’s has kept this

advantage. Starbuck’s opened its first store in 1971 in Seattle’s Pike Place Market.

About ten years after, Howard Schultz joined Starbuck’s and became the director

of retail operations and marketing and has furthered the coffee culture ever since.

Every year, Starbuck’s expanded in different ways as new stores rose in locations

all over the world and a variety of drinks were introduced. Starbuck’s retail stores

are now available in over 60 countries. Starbuck’s has reached this success by

implementing a great marketing strategy. This multinational coffee shop attracts its

customers with the brand of ease and comfort, word-of-mouth communication and

providing legendary service to the customer. Starbuck’s marketing mix is a unique

and unconventional one but has made them very successful for the past 40 years.

Through strategic planning, Starbuck’s has implemented a very unique marketing

program that will continue to draw them success.

Marketing Description

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 Starbucks takes up 33% of the market share for coffee and their market is

unlike the markets of many other companies. Starbuck’s market is focused on

multiple audiences. Starbucks uses geographic, demographic and psychographic

segmentation target markets. Starbucks main target market is men and women,

following young adults, and a small percentage to teens and kids. Adults in the

market estimate about 49% of Starbuck’s business. Demographics consist of adults

that are well-educated males and females and tend to be urbanities with moderately

high income, professional careers and a focus on social welfare. Young adults

estimate about 40% of the sales and include a majority of college students and

recent college graduates with high incomes. Kids and teens and kids account for

13-17% of the sales. Psychographic variables are used by Starbucks noticing that

their customers like to socialize and share a neighborhood. College students use

Starbucks as a place to hang out, study, write papers and meet new people. They

also engage in geographic segmentation by placing their stores in locations that are

in central spots and parts of nice neighborhoods because these are spots that are

easy to reach for everybody. Starbucks has locations near offices and many college

campuses which make easy access for their main target audiences. Not only does

Starbucks have multiple locations in the United States but they have locations in

many other countries.

Product Review

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