11/6/22, 3:43 PM Starbucks Segmentation, Targeting, and Positioning | PDF Agile

Business Analysis

Starbucks
Segmentation,
Targeting, and
Positioning
A detailed STP analysis of Starbucks

Introduction
Starbucks is highly rated by coffee lovers and
enthusiasts around the world. The giant
company began in 1971 in the cobblestone
streets of the epic Pike Place Market in Seattle.
This is the first place where Starbucks first
opened its first store. Currently, it is the largest
brand offering multiple coffee products in
different flavors on different continents.
Starbucks has implemented a comprehensive
marketing strategy to keep it ahead of the other
coffee brands This has mostly involved
https://www.pdfagile.com/blog/starbucks-segmentation-targeting-and-positioning 1/12
11/6/22, 3:43 PM Starbucks Segmentation, Targeting, and Positioning | PDF Agile
coffee brands. This has mostly involved
segmentation, targeting, and positioning.

Segmentation, targeting, and positioning is an

approach that seeks to figure out the customers
to sell to and enticingly position products to
customers. Starbucks adopts a rather robust
segmentation, targeting, and positioning (STP)
marketing strategy that has given the company
major success. 

The entire strategy involves conducting market

research, identifying potential future customers
from the public, and targeting this market
segment. The targeting is also quite exemplary
as it involves positioning products and services
based on the wants and needs of that market
segment. In this case, there are Multiple
Starbucks positioned to fulfill multiple needs and
preferences.

Market Segmentation of
Starbucks
Segmentation is the particular strategy of
subdividing a market into diverse segments of
customers. The customers are subdivided
according to their exact characteristics, their
needs, and their buying behaviors. It is these
characteristics that dictate the type of coffee
products that they will purchase. Starbucks
caters to all these segments by giving various
products suited for each.

The entire marketing strategy is based on

psychographic, behavioral, and geographic
differentiation. The demographic differentiation
targets the different ages, jobs, and income
https://www.pdfagile.com/blog/starbucks-segmentation-targeting-and-positioning 2/12
11/6/22, 3:43 PM
g g j
Starbucks Segmentation, Targeting, and Positioning | PDF Agile

levels of diverse markets. The company then

differentiates its products to satisfy the various

customer. 

To cater to the different geographical segments,

Starbucks has gone ahead to open numerous
retailing and shop outlets across the entire
world. You are bound to find a Starbucks outlet in
major cities across different continents.
Furthermore, each outlet offers products that
have been made to suit the tastes and
preferences of that local market.

The psychotropic element focuses on diverse

tastes and aligns the products. Every coffee
enthusiast has specific needs. If these needs are
met by a brand, they become loyal to the brand.
Starbucks' psychotropic market segmentation
has centered on preserving and continuously
building the behavior and loyalty of its fanbase.

The market segmentation in Starbucks has come

a long way. In the founding years, Starbucks was
meant for high-end customers only. It only
offered premium coffee products for an affluent
customer base made of professionals and white-
collar employees. Over time, Starbuck has
focused on growth by seeking other markets like
the middle-income segment. This has involved a
broader market segment and a far wider
customer base. 

Targeting of Starbucks
Targeting generally involves evaluating all
market segments and picking the best segment
https://www.pdfagile.com/blog/starbucks-segmentation-targeting-and-positioning 3/12
11/6/22, 3:43 PM Starbucks Segmentation, Targeting, and Positioning | PDF Agile

to enter and serve. It is the segment that a

company focuses on selling its products to. Every

company targets the market segment that will

give massive profit and is sustainable over the
long term. 

Starbucks has long focused on middle- and

higher-income earners by offering them
premium coffee beverages. These premium
products have also been designed to suit local
markets. Even in international outlets, Starbucks
caters to local needs. The locals can sample
Starbucks products according to their local
needs, while tourists can sample the local
Starbucks products being offered.

Starbucks also targets the environmentally

friendly and health-conscious market segment.
This is through the use of reusable cups and
recycling initiatives. Moreover, Starbucks also
offers sugar products and nutritional food
information on its website. This has endeared the
company to many sectors of the market.

Positioning of Starbucks
Positioning is the process of marketing a brand
and building a positive image of the product in
the minds of customers. The positioning strategy
employed by Starbucks is multi-segmented. It
includes the three strategies of a mono segment,
adaptive, and standby positioning.

Mono segment positioning is the technique

where Starbucks targets only premium
customers. The premium customers are those
customers who are open to paying more to take
https://www.pdfagile.com/blog/starbucks-segmentation-targeting-and-positioning 4/12
11/6/22, 3:43 PM Starbucks Segmentation, Targeting, and Positioning | PDF Agile

quality Starbucks products.

Adaptive positioning is the technique whereby

Starbucks accesses the demands of clients and
adapts to these needs. This is a strategy centered
on being health conscious about the customers.
A case example is whereby Starbucks has
developed coffee beverages that have few
calories to compensate for the market that does
not want coffee with high calories. Examples of
these little calorie products include Iced
Americano, which has 11 calories, and 63 calories
of the Caffe Misto.

There is the highly effective standby positioning

strategy employed by Starbucks. In this,
Starbucks comes up with products and awaits
for the customer base to start demanding the
product after a time. This is a future based
strategy aimed at increasing the beverage
portfolio:

Table - Starbucks
Segmentation, Targeting, and
Positioning

Type of market Criteria for Starbucks’ target

segmentation segmentation customer
segment
Geographic Region The United
States of
America, Europe,
China, Asia,
Canada, and the
Middle East
Density Urban
Metropolitan
https://www.pdfagile.com/blog/starbucks-segmentation-targeting-and-positioning 5/12
11/6/22, 3:43 PM Starbucks Segmentation, Targeting, and Positioning | PDF Agile
p
areas
Demographic Age 22-60 years

Gender Both male and

female
customers
Stage of the Young Bachelors
Life-cycle living away from
home
Newly married
couples who
have yet to have
children
Full Nest 1
youngest child
under six
Full Nest 11
youngest child
six and above
Full Nest 111
older married
couples with
dependent
children
Occupation Full-
professionals,
Interns,
Employed
workers and
students
Behavioral Level of loyalty Very loyal
customers
Assorted A relaxing
benefits of atmosphere
Starbucks A place to chat
with family and
friends while
taking quality
coffee
A place to work
while enjoying
premium coffee
Personality Ambitious,
extravagant
https://www.pdfagile.com/blog/starbucks-segmentation-targeting-and-positioning 6/12
11/6/22, 3:43 PM Starbucks Segmentation, Targeting, and Positioning | PDF Agile
extravagant,
determined and
easygoing
User status Regular
customers
Psychographic Social class Upper and
middle class
Customer Explorers
lifestyles Mainstreaming
Ambitious
Succeeded
Reformed

Starbucks Segmentation,
Targeting, and Positioning
Mind Map
The mind map shows how the global coffee
brand Starbucks progressively offers premium
and quality products to its loyal customer base.
The company has created a unique market
approach that involves segmentation, targeting,
and positioning. The segmentation has ensured
that Starbucks has a map of all customer's needs
and preferences. Targeting has involved making
products that directly meet the needs of a given
market segment. The positioning has effectively
distinguished Starbucks' products from
competing brands and given the company an
unassailable competitive edge in its target
markets.

Every customer visiting Starbucks already has

the vision that they will take a premium coffee
that is of high quality in a place of ambiance. The
entire mind map shows the marketing approach
used by Starbucks. Marketing professionals and
startup companies can take inspiration from
https://www.pdfagile.com/blog/starbucks-segmentation-targeting-and-positioning 7/12
11/6/22, 3:43 PM Starbucks Segmentation, Targeting, and Positioning | PDF Agile
startup companies can take inspiration from

these strategies. They are applicable even in

companies that offer different services.

One-Stop Tool to Accelerate Your PDF Wo

Key Takeaway
Download the Starbucks Corporation report to
get a detailed analysis of the segmentation,
targeting, and positioning strategies employed
by Starbucks. The report illustrates how
Starbucks applies position strategies, market
targeting, and marketing segmentation to
acquire its extensive competitive advantage over
other coffee retailers. The report also has a
tabular representation of Starbucks' entire
strategy.

Starbucks' STP gives the company a

competitive advantage. The company has
diff i di d
https://www.pdfagile.com/blog/starbucks-segmentation-targeting-and-positioning hi h k h 8/12
11/6/22, 3:43 PM Starbucks Segmentation, Targeting, and Positioning | PDF Agile
differentiated its product which makes the
brand unique from the competing coffee

industries. The company offers premium

quality products, localized menu items, and the
use of technology to connect with customers.
Starbucks maintains quality by connecting
directly with coffee growers.

Download the report

For the future making of PDFs, please feel free to

use the software PDF Agile. The highly acclaimed
PDF software, PDF Agile, offers a complete and
affordable solution for all your PDF needs. You
can use it to make highly detailed PDF formats
for your audiences with relative ease.

References
Starbucks Segmentation, Targeting and
Positioning – Targeting Premium Customers
with Quality Products and Service

https://research-methodology.net/starbucks-
segmentation-targeting-and-positioning-
targeting-premium-customers-with-quality-
products-and-service/

Starbucks Market Segmentation, Targeting, and

Positioning

https://www.edrawmind.com/article/starbucks-
market-segmentation-targeting-and-
positioning.html /

Essay: Strategy on market segmentation

targeting and positioning of Starbucks

https://www.essaysauce.com/business-
/t t k t
https://www.pdfagile.com/blog/starbucks-segmentation-targeting-and-positioning
t ti 9/12
11/6/22, 3:43 PM Starbucks Segmentation, Targeting, and Positioning | PDF Agile
essays/strategy-on-market-segmentation-
targeting-and-positioning-of-starbucks/

Starbucks Competitive Advantages (9 Different

Factors)

https://querysprout.com/starbucks-competitive-
advantages/

Related Articles

Business Analysis 5 Mins

Adidas Segmentation,
Targeting, and Positioning
Adidas's market segmentation, targeting,
and positioning strategies are responsible…

Read More >>

https://www.pdfagile.com/blog/starbucks-segmentation-targeting-and-positioning 10/12
11/6/22, 3:43 PM Starbucks Segmentation, Targeting, and Positioning | PDF Agile

Business Analysis 5 Mins

Zara Segmentation,
Targeting, and Positioning
Zara's segmentation, targeting, and
positioning strategies position the compa…

Read More >>

Business Analysis 5 Mins

Netflix Segmentation,
Targeting, and Positioning
Netflix segmentation, targeting, and
positioning strategies help to position…

Read More >>

https://www.pdfagile.com/blog/starbucks-segmentation-targeting-and-positioning 11/12
11/6/22, 3:43 PM Starbucks Segmentation, Targeting, and Positioning | PDF Agile

Company & Product

Resources

Follow us

Privacy Policy Terms & Conditions Cookies Policy

Refund Policy

Copyright © 2022 PDF Agile. All rights reserved.

https://www.pdfagile.com/blog/starbucks-segmentation-targeting-and-positioning 12/12