REPOSITIONING OF STARBUCKS

Laiba NasirLAIBA NASIR 21-116

ESHA AMIR 21-057
KAINAT WAJID 21-430
Contents
CONSUMER BEHAVIOUR BEING STUDIED..............................................................2
METHODOLOGY USED FOR RESEARCH:.................................................................2
Introduction......................................................................................................................3
How Starbucks lost its focus?...........................................................................................4
Target Market...................................................................................................................4
Initial Target Market..................................................................................................................4
Current target Market................................................................................................................5
Repositioned target groups of Starbucks...................................................................................5
Overall Repositioning of the Brand..................................................................................6
Marketing Plans and Objectives for repositioning...........................................................9
Recommendations for marketing actions and measures................................................12
Market segmentation......................................................................................................12
Demographics:..........................................................................................................................13
Geographic:...............................................................................................................................13
Behavioral:................................................................................................................................14
Psychographic...........................................................................................................................14
Table:..............................................................................................................................15
Unique selling point:.......................................................................................................17
SWOT Analysis:..............................................................................................................19
Strengths:..................................................................................................................................19
Weaknesses:..............................................................................................................................19
Opportunities:...........................................................................................................................20
Threats:.....................................................................................................................................20
Strengths:..................................................................................................................................21
Weaknesses:..............................................................................................................................21
Threats:.....................................................................................................................................21
Opportunities:...........................................................................................................................21
SMART objectives:.........................................................................................................21
Customer profiling:.........................................................................................................22
Research marketing strategy:.........................................................................................24
4 P's marketing mix........................................................................................................24
Product......................................................................................................................................24
Price..........................................................................................................................................25
Place..........................................................................................................................................25
Promotion..................................................................................................................................25
How Starbucks lost its focus?.........................................................................................26
4 P’s of Starbucks before repositioning..........................................................................26
4 P’s of Starbucks after repositioning.............................................................................27
Analysis on 4 P’s of Starbucks........................................................................................28
Recommendation on how can Starbucks improve its 4 P’s............................................29
Recommendations for Starbucks advertising and branding..........................................30
Starbucks monitoring and evaluation.............................................................................30
Recommendation for monitoring and evaluation of Starbucks...............................................31
Conclusion.......................................................................................................................31
Citation:...........................................................................................................................32

CONSUMER BEHAVIOUR BEING STUDIED.

Repositioning is a marketing strategy that involves changing the way that
consumers perceive a brand or product in order to better meet their needs and
preferences. This can involve changing the product itself, the way that it is
marketed, or the target audience that it is aimed at. Repositioning is often used
when a brand or product is struggling to compete in the market or when
consumer preferences have shifted. By repositioning the brand or product,
marketers can create a new image or identity that better resonates with
consumers and helps to differentiate it from competitors. Successful
repositioning efforts require a deep understanding of consumer behaviour,
including their needs, preferences, and attitudes towards different brands and
products.

METHODOLOGY USED FOR RESEARCH:

The methodology used for research is qualitative data as we analysed the available
non-numerical data and secondary data. The content available online was
thoroughly studied and analysed in order to cover the relevant topics existing data is
summarized and analysed accordingly.
Introduction

Starbucks is a coffeehouse chain that was founded in Seattle, Washington in

1971. It was initially a single store that sold only coffee beans and coffee-
making equipment. However, it quickly expanded and began serving coffee to
customers in 1984. The company has since grown to become the largest
coffeehouse chain in the world, with over 30,000 locations worldwide.
Starbucks is known for its high-quality coffee, which is made from premium
Arabica beans. The company has developed a loyal following of customers who
appreciate the quality of its products and the atmosphere of its stores. Starbucks
stores are designed to be comfortable and welcoming, with comfortable seating
and a relaxed atmosphere. The company has also been successful in part
because of its commitment to social responsibility. Starbucks has implemented
a number of initiatives to reduce its environmental impact, including using
sustainable materials and reducing waste. Starbucks has also been active in
supporting local communities through various charitable initiatives.
Starbucks has expanded its menu to include a variety of other beverages,
including tea, hot chocolate, and juice. The company also offers a selection of
food items, including sandwiches, pastries, and snacks. Starbucks has also
introduced mobile ordering and payment options to make it easier for customers
to order and pay for their drinks without having to wait in line.
Overall, Starbucks has become one of the most successful and recognizable
brands in the world. Its commitment to quality and social responsibility has
helped it to build a loyal following of customers who appreciate its products and
values.
Starbucks has a unique business model that has contributed to its success. The
company has a vertically integrated supply chain, which means that it controls
every aspect of the coffee-making process, from sourcing the beans to roasting
and packaging them. This allows Starbucks to ensure that its coffee is of the
highest quality and consistency.
Starbucks has also been successful in part because of its marketing and branding
efforts. The company has created a strong brand identity that is recognizable
around the world. Starbucks' logo, which features a mermaid, has become
synonymous with the company and its products. The company has also been
successful in creating a sense of community among its customers, who often see
Starbucks as a place to gather and connect with others.
How Starbucks lost its focus?

Starbucks lost its focus in the mid-2000s due to rapid expansion and a shift
away from its core values. In an effort to increase profits, Starbucks began
opening new stores at a breakneck pace, leading to oversaturation in many
markets. This expansion also led to a decline in the quality of Starbucks'
products and services, as the company struggled to maintain consistency across
all of its locations. Additionally, Starbucks began to prioritize growth over its
core values of quality, community, and sustainability, which resulted in a loss of
customer loyalty and a decline in sales. Starbucks' shift away from its core
values also made it vulnerable to competition from smaller, independent coffee
shops that offered more authentic and personalized experiences. Overall,
Starbucks lost its focus by prioritizing growth and expansion over its core
values, which led to a decline in customer loyalty and sales.

Target Market

Initial Target Market

Starbucks first catered to coffee enthusiasts and experts when it first started in
1971. Jerry Baldwin, Zev Siegl, and Gordon Bowker, the company's founders,
first positioned Starbucks as a supplier of premium whole-bean coffee and
coffee making supplies.

In Seattle, Washington, the first Starbucks catered to a specific group of people

who valued specialty coffee and were ready to pay more for it. The founders
wanted to replicate the Italian coffee culture in the United States and were
motivated by their experiences there.Early on, Starbuck Corporation sought to
attract educated, wealthy, and white-collar workers; however, when the
company saw prospects for industry growth, it began to develop tactics to serve
a larger range of market segments.
At that time, Starbucks mostly catered to adults, especially those who were
looking for distinctive and exotic coffee flavours. The inside of the shop was
created to evoke a quaint and cosy ambiance akin to a European café.

Starbucks widened its target audience throughout time to include a wider range
of people, such as professionals, students, and people searching for a place to
socialise. The company's target market increased to include a larger range of
coffee customers as it developed and introduced new products and store styles.
Current target Market

Coffee users who like drip coffee, those who enjoy speciality coffee, and those
who purchase whole beans are all part of the target market. In terms of
demographics, Starbucks concentrates on men and women, professionals, and
students. They target folks between the ages of 22 and 60 because professionals
and employees can be found in the older age group. Its targeting strategy also
focuses on single persons, older married couples with kids, and the youngest
kids under and over the age of six.
Thus, the target market of starbucks has changed keeping in mind the changes
in the trends and because of new demands and objectives.

Repositioned target groups of Starbucks

Starbucks is a global chain of coffee shops which serves a broad target market
that includes a range of demographic groups. The geographical and cultural
environment also effects and impacts To be more precise the following are
some prioritized target groups:
Starbucks typically appeals to people who are passionate about coffee and value
the craft of speciality coffee drinks. These customers like the premium flavours
and variety that Starbucks offers, as well as the chance to experiment with
various mixes and brewing techniques.
Starbucks attracts urban professionals who are looking for an accessible and
comfortable setting to work, study, or hold meetings, including office workers,
students, and entrepreneurs. Thus, they chose this location to work and to have a
sip of good coffee as well. Moreover, the company's locations frequently offer
free Wi-Fi, lots of seating, and a laid-back ambiance that appeals to this market.
Starbucks has been able to effectively position itself as a hip and socially
responsible brand which is appealing to both the millennials and the Generation
Z. Customers in the Millennial and Gen Z generations are drawn to Starbucks
because of its cutting-edge food options, contemporary store designs, and
dedication to sustainability and ethical sourcing.
Furthermore, the customers who are concerned about their health, for instance ,
those who have an interest in health and wellness continues to rise, Starbucks
has responded by providing a variety of healthier food and drink alternatives.
The business caters to consumers who are concerned about their health and are
looking for products like low-fat drinks, plant-based milk substitutes, and
wholesome food options.
Customers with higher disposable incomes are drawn to Starbucks by its
premium pricing approach, which frames it as a more luxury coffee shop brand.
These wealthy clients are frequently prepared to spend more for the Starbucks
experience, which includes its atmosphere, high-quality service, and premium
coffee selections.
In addition, Starbucks also serves to those who are on the go and need a fast fix
of coffee. It targets those customers that are continuously on the go and can be
accommodated through drive-thrus, mobile ordering using the Starbucks app,
and grab-and-go menu items
Starbucks has a sizable following abroad and customises its marketing tactics to
fit various customs and tastes. It caters to a wide range of consumers around the
world, localising its offerings while upholding its key principles and brand
identity.
There have been a number of noticeable changes in Starbucks' target market
over the years, with the latest change that came in September 2021. Moreover,
it's important to understand that the market dynamics can change quickly, and
thus particular developments take place along the way. These are some ways in
which Starbucks repositioned themselves.

Overall Repositioning of the Brand

This can be seen as when Starbucks took certain steps in order to rebrand and
reposition itself as a destination for tea enthusiasts .Although for being known
mostly for its coffee, Starbucks bought Teavana, a vendor of speciality teas, in
2012, and started adding tea-related items to its menu. Hence, Starbucks was
able to use its existing brand recognition and store network to acquire a wider
client base interested in tea as a result of this move.
Starbucks has placed a strong emphasis on the digital experience as it
understands the growing significance of technology and digital platforms in the
retail sector. For the purpose of improving customer satisfaction and luring
tech-savvy customers, the firm has made investments in mobile ordering,
payment methods, and has introduced Starbucks Rewards programmes .
Starbucks is rebranding itself as a digitally-driven brand in an effort to better
serve the interests and habits of a clientele that is becoming more and more
connected.
Besides, introducing new flavors, Starbucks is now placing more of an
emphasis on providing healthier menu options to it’s consumers.In order to
attract clients who are health-conscious, the company has launched products
including low-calorie beverages, gluten-free snacks, and plant-based substitutes.
This repositioning fit with the growing demand for wholesome and
environmentally friendly foods and drinks.
Starbucks has worked to tailor its products to the local preferences and tastes of
different markets throughout the world. For instance, in order to attract
customers in China, Starbucks added and included traditional tea beverages and
food items into its menu. Moreover, Starbucks is able to reinvent itself as a
company that respects and takes into account the cultural quirks and variations
between various countries .
Starbucks has taken great and various steps in order to rebrand itself as a brand
that cares and takes into account both the environment and social
responsibility. The business has tried to follow challenging environmental
objectives, such as they have tried in lowering its carbon impact and supports
ethical sourcing methods. Nowadays, the customer demand for businesses that
prioritise sustainability and ethical business practises is expanding, and this
repositioning is in line with that demand.
In the past, Starbucks has mostly targeted urban, wealthy, and young adult
customers who enjoy good coffee and a welcoming environment. The business
wanted to establish a "third place" where consumers could unwind, interact with
others, or work while consuming their beverages. This target market sector
frequently included professionals, students, and anyone looking for an
exceptional cup of coffee.
While Starbucks has stayed dedicated to its core clientele, the business has also
launched a number of measures to increase its appeal and meet changing
customer demands. To draw in a wider clientele, these initiatives have included
the addition of additional menu items, such as increased food selections and
alternative beverage alternatives, such as tea, refreshers, and cold brews.
Additionally, Starbucks has made an attempt to cater to customers who are
health-conscious by delivering more nutrient-dense food and beverage options
and being transparent about the sourcing of its ingredients and nutritional data.
Additionally, the business has emphasized its dedication to sustainability and
ethical sourcing, which may appeal to customers who are concerned about the
environment.

It's important to note that precise information on Starbucks' current marketing

tactics and target market realignment after September 2021 would need to be
current. For the most up-to-date details on Starbucks' positioning and target
market, I advise consulting the most recent news, official business statements,
and market research.
The company's positioning strategy is to focus on the demands of the consumer
and go to limits to satisfy them. Along with making amazing coffee, it
cultivates a positive reputation with its target audience by protecting the
environment, being socially responsible, and providing superb retail ambiance.
Alongside with making exceptional coffee, it also cultivates a positive
reputation with its target audience by protecting the environment and being
socially and environmentally responsible.
Due to changes in consumer behaviour, Starbucks needed to reinvent itself.
Consumers were growing more health conscious and searching for healthier
options in terms of food and drink. Starbucks had a reputation for serving
sugary drinks and snacks, which were no longer in line with what customers
wanted and had to be changed..

Additionally, speciality coffee, which was provided by smaller, independent

coffee shops, was gaining popularity among the consumers. These stores were
able to provide a more individualized experience because of their skilled
baristas who could make suggestions based on customers' preferences.
Starbucks started to recast itself as a purveyor of premium coffee and started
giving nutritious food options after it became more aware of these shifts in
consumer behaviour. The business started selling a range of salads and fruit
cups that were healthier eating options, and it started to provide customers
additional customization options so they could make their own drinks according
to their tastes.
Additionally, Starbucks started putting more of an emphasis on the calibre of its
coffee by releasing new blends and highlighting the skills of its baristas. In
order to attract customers who were interested in speciality coffee, the company
started to provide more details about their coffee, such as the location of the
beans and the method of roasting.

Overall, Starbucks' repositioning efforts were successful in appealing to

changing consumer behavior. The company was able to maintain its position as
a leader in the coffee industry while adapting to new trends and preferences.
Starbucks' success can be attributed to its distinctive business strategy. The
business controls every step of the coffee-making process, from procuring the
beans to roasting and packaging them, thanks to its vertically integrated supply
chain. Starbucks is able to guarantee the highest level of consistency and quality
thanks to this.

Marketing Plans and Objectives for repositioning

Starbucks' marketing and branding initiatives have also contributed to its

success. The business has developed a distinctive brand identity that is well-
known all around the world. Starbucks' mermaid-themed emblem has come to
represent both the brand and its goods. Additionally, the business has been
successful in fostering a feeling of community among its patrons, who
frequently view Starbucks as a place to congregate and connect with one
another.

In recent years, Starbucks has also made a commitment to social responsibility.

The company has implemented a number of initiatives to reduce its
environmental impact, including using sustainable materials and reducing
waste. Starbucks has also been active in supporting local communities through
various charitable initiatives, such as the Starbucks Foundation, which supports
education and community development programs around the world.

Overall, Starbucks has become one of the most successful and recognizable
brands in the world. Its commitment to quality, social responsibility, and
community has helped it to build a loyal following of customers who appreciate
its products and values.
When customers are paying exceptional sums for strong brands, brand
recognition is a crucial aspect in the expansion of enterprises. A corporation can
engage with its customers through marketing, which aims to influence the
customers' consumption patterns. The most recent developments in marketing
and technology offer value and ensure consistent income generation for the
specific business. The goal of marketing communication is to increase demand
for the products and services. Chief marketing officers and brand managers are
employed by businesses to do the standard marketing tasks for the businesses.
The businesses devote sufficient marketing funds to building a strong consumer
base and managing their brands
Marketing plan and objectives include many components and strategies. And
starbucks focuses on certain components of the marketing mix such as, prices,
goods, promotions, methods, locations, and physical surroundings. The main
goals of the marketing mix is to create communication and offer clients value.
Starbucks uses a variety of marketing techniques, including social media
marketing, marketing communications, and customer relationship management.
The goal of Starbucks is to provide their low-income consumers with a
memorable customer experience so that they may develop a lasting relationship
with them that is one of their major goal to accomplish.
Starbucks seeks to establish HR procedures that will please the staff so that they
may act as brand ambassadors and manage efficient customer connections.
Starbuck's aims to have 40 000 stores worldwide after they reach their current
number of up to 13, 000 locations. Starbucks understands that in order to
achieve this goal, there must be a number of modifications; otherwise, it will
quickly go away.
Starbucks aims to improve its brand's global recognition and visibility.
Thus,the business is committed in building strong brand connotations with
sustainability, quality, and a satisfying customer experience.
For instance ,as a part of a larger shift towards a circular economy, Starbucks
aims to reduce carbon emissions by 50% by 2030. It also plans to reduce waste
from manufacturing and stores by 50% and conserve or replenish 50% of the
water currently used for direct operations and coffee production.
Starbucks is identified as having several key areas where it can have a
significant impact by 2030, which includes increasing the number of plant-
based and environmentally friendly menu options ,switching from single-use to
reusable packaging, investing in cutting-edge agricultural, water conservation,
and reforestation practises, finding ways to better manage waste (including food
waste) in stores and communities, and creating more environmentally friendly
operations across the board, from manufacturing to supply chains to stores.
Furthermore, Starbucks aims to build a devoted client base by promoting
interaction and return trips. To strengthen consumer interactions, the business
has developed programmes including the Starbucks Rewards programme,
tailored incentives, and social media advertising.
Cards that are a part of the Starbucks Rewards Loyalty Programmes are
provided by Starbucks. Customers appear to have embraced these cards well.
Starbucks tries to anticipate changing consumer trends and preferences. To
accommodate various tastes and preferences, it often produces new beverages,
seasonal offerings, and time-limited promos by launching cups and new
flavours depending upon the season.
Starbucks values its commitment to sustainability and social responsibility. To
appeal to socially concerned customers, the company works to lessen its
environmental effect, advance ethical sourcing methods, and take part in
community initiatives.
To increase its market share and provide co-branded products, Starbucks looks
to form strategic alliances and partnerships with other companies. Starbucks is
able to diversify its services and reach out to new client segments through
partnerships with businesses across several industries. One of the best examples
of this strategic partnership is the agreement between Starbucks and Barnes &
Noble. Coffee is brewed by Starbucks and Books are provided by Barnes &
Noble. To the benefit of both businesses, each one does what it does best while
splitting the costs of the facility. Starbucks’Strategic partnerships and
acquisitions with Evolution Fresh, La Boulange, Teavana, Danone, and Green
Mountain Coffee Roasters.
The expansion of Starbucks' digital contacts with customers is one of its top
focuses. In order to do this, it is putting new strategies into place to draw
digitally enrolled clients aside from the rewards programme. For instance, the
coffee company uses Wi-Fi sign-ins at its physical outlets and provides mobile
order services.
On social media, Starbucks is widely recognised. The business's numerous
social media pages are well-known for their distinctive branding, engaging
updates, and attractive content. There is a wide variety of content, such as
features, photos, articles, and recipes. There is, however, more than meets the
eye. The content stream can be divided into a number of initiatives intended to
build community and brand awareness.

Recommendations for marketing actions and measures

The recommendation for marketing actions include that the Starbucks

Corporation must aggressively innovate, particularly in the area of product
development, as this can make the company's products harder to copy. It is also
advised that Starbucks Corporation should consider applying pricing strategies
that will attract more customers. Bundle pricing, for instance, can assist in
addressing the danger of competition from low-cost vendors.
Implementing innovative marketing and branding initiatives that enhance
Starbucks' corporate reputation as a supporter of community development is
also an appropriate option in this situation. Such a perception can lessen social
resistance to the business's growth. For instance, promoting their sustainability
actions and the measures they take in order to protect the environment.

Market segmentation

Market segmentation is a marketing tactic that divides the total addressable

market share of a brand into more manageable categories using well established
criteria. Each group, or segment, has shared traits that allow the brand to
provide specialized and niche goods, deals, and experiences.
Before repositioning, Starbucks generally classified its market based on
demographics, psychographics, and geographic characteristics. The corporation
primarily targeted urban, affluent, and educated clients. This generation valued
high-quality, one-of-a-kind coffee experiences, with an emphasis on ethical and
sustainable sourcing. Starbucks also attempted to appeal to customers looking
for a "third place" outside of home and work, where they could socialize or
work in a relaxing setting.
Starbucks has split their market based on psychographics, focusing on
customers interested in wellness, technology, and convenience. The corporation
also analyzed geographical characteristics, focusing on high-traffic regions such
as big city centers, shopping malls, and airports.
Prior to repositioning, Starbucks' segmentation was based on a combination of
demographic, psychographic, and geographic variables, with an emphasis on
producing a premium coffee experience for urban, affluent, and educated
consumers.
The market segmentation of Starbucks is typically divided into four variables
- demographic, geographic, behavioral, and psychographic. These variables will
be the basis for specifying a company's target market. Every company has
various variables for its marketing strategy; however, since Starbucks is a global
company, it is proper to tackle several categories with its marketing plan. The
segmentations of Starbucks are explained in table below:

Demographics: For demographics, Starbucks focuses on men and women,

professional employees, and students. Professionals and employees can include
people in their later years; so, they target those aged 22 to 60.
Geographic: Starbucks considers geography as one of its target factors because
it serves many chains worldwide. Starbucks should be included in the
geographic part of the targeting anywhere there is a Starbucks chain. Latin
America, the United States, Canada, the Middle East, Europe, China, Africa,
Asia, and the Pacific are all included. Customers from a specific sociological
class and customers with diverse lifestyles are among the psychographic parts
of Starbucks' marketing strategy.
Behavioral: Behavioral dimensions commonly used to segment markets
include benefits sought, user status, usage rate, and loyalty status and buyer
readiness stage. Also called Behavioristic Segmentation. Starbucks uses
behavioral segmentation to target their regular morning customers with an
incentive to get them back in for another purchase later in the day.
Psychographic: Psychographic segmentation is a favorite strategy used by
Starbucks, and it greatly contributes to the brand's reliability. As an illustration,
they have
 The "Serious coffee drinker" (who has a higher money and is catered to
by exhibiting their top-quality beans from across the world).
 "Non-coffee drinkers who still want to socialize" are both catered to by
selling Frappuccino and sandwiches in stores.
The early years of Starbucks focused on the well-off market, which was mainly
composed of educated customers and those with white-collar jobs. However,
they discovered opportunities for growth in the industry, setting strategies to
accommodate a broader scope of a market segment. Starbucks classifies its
market based on demographic, geographic, behavioral, and psychographic.
They then use a product differentiation approach to satisfy varying customer
groups. As with the geographic segmentation, the company has retail outlets in
several locations, where each outlet reflects the preferences and tastes of the
local market. The outlets might have similar designs but vary in product
categories, such as baked food and coffee. Demographics will include the
company's target market's age, occupation, and income level. Meanwhile, the
psychotropic variables include customer tastes and styles to provide authentic
products for diverse customer needs. The behavioral elements in Starbucks'
market segmentation can tackle consumer loyalty and consumption behavior.

Table:

Here's what Starbucks' market segmentation, targeting, and positioning look like

in a chart.
segmentation targeting positioning
demographics Age: 22-60 ● Excellent store
Gender: Male and ambiance
Female ● Social commitment
Occupation: ● Environment
Professionals, protection
employees, and students
Life-cycle stage: Single
people, young married
couples, older married
couples with children,
youngest child under and
over six
Geographic Region: Latin America,
US, Canada, Middle
East, Europe, China,
Africa, Asia, and the
Pacific Region
Density: Urban
Psychographic Social Class: Middle
and upper-class markets
Lifestyle: reformer,
aspirer, explorer,
achiever, mainstreamer

Behavioral Benefits sought: A place

conducive for work,
formal and informal
meetings. Enjoying a
premium quality coffee
with a relaxing
 ambiance.
Degree of loyalty: 'Hard
core' loyalty

Starbucks can improve its demographic factors by creating more inclusive

hiring practices, expanding to new locations, and offering more diverse menu
options. They can also consider partnering with local organizations to support
the communities where they operate. They can improve their geographic factors
by opening new locations in areas that are underserved by coffee shops,
expanding into new regions, and tailoring their menu and marketing to appeal to
the local tastes and customs. They can also consider offering delivery services
and mobile ordering to make their products more accessible to customers.
Starbucks can improve their psychological factors by creating a welcoming and
comfortable atmosphere in their stores, training their employees to provide
excellent customer service, and offering promotions and loyalty programs to
reward frequent customers. They can also consider partnering with mental
health organizations to promote mental wellness and offer resources to their
customers and employees. Starbucks can improve their behavioral factors by
offering healthier menu options, promoting sustainable and socially responsible
practices, and encouraging customers to bring reusable cups and bags to reduce
waste. They can also consider offering free Wi-Fi and creating a welcoming
environment that encourages customers to stay longer and make repeat visits.
Segmentation is a marketing strategy that involves dividing a market into
smaller groups of consumers with similar needs and preferences. By targeting
specific segments with tailored products, services, and marketing campaigns,
companies can increase their chances of success and improve customer
satisfaction. Starbucks has used segmentation to identify and target specific
customer groups with unique needs and preferences. They have used
demographic, psychographic, and behavioral segmentation to identify
customers who are willing to pay a premium for high-quality coffee, a unique
coffeehouse experience, and a socially responsible brand. Starbucks has used
this information to create targeted marketing campaigns, develop new products
and services, and improve customer satisfaction. By using segmentation,
Starbucks has been able to differentiate itself from competitors and create a
strong brand identity that resonates with customers. Starbucks has used
segmentation to identify and target specific customer groups with unique needs
and preferences. In the early years, Starbucks segmented its market based on
demographics, targeting affluent and educated consumers who were willing to
pay a premium for high-quality coffee and a unique coffeehouse experience. As
the company grew, it expanded its segmentation strategy to include
psychographics, targeting customers who were interested in the Starbucks brand
and its culture. This was reflected in the company's store designs, menu
offerings, and marketing campaigns, which emphasized the Starbucks lifestyle
and community. In recent years, Starbucks has also segmented its market based
on behavioral factors, targeting customers who are interested in sustainability,
social responsibility, and healthier menu options. This has been reflected in the
company's efforts to reduce waste, promote sustainability, and offer healthier
menu options. Overall, Starbucks has been successful in using segmentation to
identify and target specific customer groups with unique needs and preferences,
and in repositioning its brand to stay relevant and appeal to changing customer
demands.

Unique selling point:

The unique selling point of Starbucks in the early years was its premium coffee
and unique coffeehouse experience. Starbucks positioned itself as a premium
coffee brand that offered high-quality coffee beans and a unique coffeehouse
experience that customers could not find anywhere else. They offered a wide
variety of coffee drinks, pastries, and sandwiches. Starbucks also emphasized
the quality of its coffee beans, which were sourced from around the world and
roasted in small batches to ensure freshness and flavor. This unique selling
point helped Starbucks differentiate itself from competitors and create a strong
brand identity that resonated with customers. They sourced their coffee beans
from around the world and roasted them in small batches to ensure freshness
and flavor. The company emphasized the quality of its coffee beans, which were
carefully selected and roasted to bring out their unique flavors and aromas.
Starbucks also created a unique coffeehouse experience that customers could
not find anywhere else. Apart from this The cozy environment was a key part of
Starbucks' unique selling point in the early years. Starbucks stores were
designed to be warm, inviting, and comfortable, with comfortable seating, free
Wi-Fi, and a relaxed atmosphere. This created a unique coffeehouse experience
that customers could not find anywhere else. Starbucks stores were a place
where customers could relax, socialize, and enjoy their coffee in a cozy and
welcoming environment. This emphasis on creating a cozy environment was a
key part of Starbucks' unique selling point in the early years, and helped the
company differentiate itself from competitors and create a strong brand identity
that resonated with customers.
Starbucks' unique selling point after repositioning is its focus on innovation and
sustainability. Starbucks has expanded its menu to include a wider variety of
coffee drinks, teas, and food items, and has introduced new products such as
cold brew coffee and Nitro cold brew. They have also introduced new
technology such as mobile ordering and delivery, and have focused on
sustainability by using ethically sourced coffee beans, reducing waste, and
investing in renewable energy. Starbucks has also focused on creating a unique
coffeehouse experience that goes beyond just coffee, by offering a welcoming
environment, free Wi-Fi, and a range of food and beverage options. This unique
selling point has helped Starbucks differentiate itself from competitors and
create a strong brand identity that resonates with customers.
Starbucks has undergone two significant positioning changes over the years. In
the early years, Starbucks positioned itself as a premium coffee brand that
offered a unique coffeehouse experience that customers could not find
anywhere else. They emphasized the quality of their coffee beans, which were
carefully selected and roasted to bring out their unique flavors and aromas. This
unique selling point helped Starbucks differentiate itself from competitors and
create a strong brand identity that resonated with customers.
In recent years, Starbucks has repositioned itself as an innovative and
sustainable coffee brand. Starbucks has expanded its menu to include a wider
variety of coffee drinks, teas, and food items, and has introduced new products
such as cold brew coffee and Nitro cold brew. They have also introduced new
technology such as mobile ordering and delivery, and have focused on
sustainability by using ethically sourced coffee beans, reducing waste, and
investing in renewable energy. Starbucks has also focused on creating a unique
coffeehouse experience that goes beyond just coffee, by offering a welcoming
environment, free Wi-Fi, and a range of food and beverage options.
Compared to its early years, Starbucks' new positioning has allowed the
company to appeal to a wider range of customers and differentiate itself from
competitors. Starbucks has been able to adapt to changing consumer preferences
and trends, while maintaining its core values and unique selling points.
Starbucks has also been able to create a positive impact on the environment and
society, which has helped to build a stronger brand identity.
Overall, Starbucks' positioning and repositioning have been successful in
creating a unique brand identity and differentiating itself from competitors.
Starbucks has been able to adapt to changing consumer preferences and trends,
while maintaining its core values and unique selling points. This has helped
Starbucks maintain its position as a leading coffee brand and continue to grow
and expand its business.

SWOT Analysis:

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a

SWOT analysis is a technique for assessing these four aspects of your business.
SWOT Analysis is a tool that can help you to analyze what your company does
best now, and to devise a successful strategy for the future. SWOT Analysis
can help you to challenge risky assumptions and to uncover dangerous
blind spots about your organization's performance. If you use it carefully
and collaboratively, it can deliver new insights on where your business
currently is, and help you to develop exactly the right strategy for any
situation.
The Starbucks SWOT analysis is a useful tool for evaluating the strengths,
weaknesses, opportunities, and threats facing the company. Starbucks has a long
history of innovation, including the introduction of the coffee bar concept and
the development of new products such as the Frappuccino. The company is also
committed to sustainability, with a focus on sourcing high-quality coffee beans
and reducing its environmental impact. 
Before repositioning they had several strengths as:
Strengths:
- Strong brand identity and reputation
- High-quality coffee beans and unique coffeehouse experience
- Wide range of food and beverage options
- Strong financial performance and global presence
- Strong customer loyalty and engagement
However, there were also several weaknesses. They are sorted below as:
Weaknesses:
- High prices compared to competitors
- Limited menu options for non-coffee drinkers
- Limited focus on sustainability and ethical sourcing
- Limited focus on digital technology and mobile ordering
There were also several opportunities for Starbucks. The opportunities are
sorted below:
Opportunities:
- Expansion into new markets and regions
- Introduction of new products and menu options
- Focus on sustainability and ethical sourcing
- Focus on digital technology and mobile ordering
There were also several threats to Starbucks. They are sorted as
Threats:
- Intense competition from other coffee brands and food chains
- Economic downturns and changes in consumer spending habits
- Changes in consumer preferences and trends
- Negative publicity or reputational damage
Overall, Starbucks' SWOT analysis before repositioning showed that while the
company had a strong brand identity and reputation, there were opportunities
for improvement in areas such as sustainability and digital technology.
Additionally, there were threats from intense competition and changes in
consumer preferences and trends. By repositioning itself as an innovative and
sustainable coffee brand, Starbucks was able to address these weaknesses and
threats, while building on its strengths and opportunities.
After repositioning, Starbucks' SWOT analysis showed that the company
following strengths:
Strengths:
- Strong focus on sustainability and ethical sourcing
- Renewed focus on digital technology and mobile ordering
- Emphasis on innovation and new product development
- Strong brand identity and reputation
- High-quality coffee beans
- Unique coffeehouse experience
- Wide range of food and beverage options
- Strong financial performance
- Global presence
However, there were also new weaknesses that are sorted as:
Weaknesses:
- Potential backlash or criticism from consumers or stakeholders who do not
agree with the company's sustainability and ethical sourcing practices

The threats to them are:

Threats:
- Increased competition from other coffee brands and food chains that are also
focusing on sustainability and innovation
Opportunities:
- Changes in consumer preferences and trends
- Potential economic downturns or changes in consumer spending habits.
Overall, the comparative analysis of Starbucks' SWOT analysis before and after
repositioning showed that the company had made significant progress in
addressing its weaknesses and threats, while building on its strengths and
opportunities. By focusing on sustainability, innovation, and digital technology,
Starbucks was able to differentiate itself from competitors and appeal to a wider
range of consumers. However, the company also faced new challenges and risks
that it would need to continue to address in order to maintain its position as a
leader in the coffee industry.

 SMART objectives:

An effective SMART marketing objective is: Specific, measurable, actionable,

relevant, and time-bound.
Starbucks' SMART objective before repositioning was to expand its customer
base and increase its market share by opening new stores and expanding its
product offerings, while maintaining its high-quality coffee and unique
coffeehouse experience. This objective was specific, measurable, achievable,
relevant, and time-bound, as it focused on increasing customer traffic and sales
through new store openings and product innovations within a specific
timeframe.
Starbucks' SMART objective after repositioning was to increase its focus on
sustainability and ethical sourcing, while also improving its digital technology
and mobile ordering capabilities, in order to differentiate itself from competitors
and appeal to a wider range of consumers. This objective was specific,
measurable, achievable, relevant, and time-bound, as it focused on improving
the company's sustainability efforts and digital technology within a specific
timeframe, while also maintaining its high-quality coffee and unique
coffeehouse experience.
Overall, the comparative analysis of Starbucks' SMART objectives before and
after repositioning showed that the company had shifted its focus from growth
and expansion to sustainability and innovation. While both objectives were
specific, measurable, achievable, relevant, and time-bound, the company's
priorities had changed in response to changing consumer preferences and
trends. By focusing on sustainability and digital technology, Starbucks was able
to differentiate itself from competitors and appeal to a wider range of
consumers, while also maintaining its high-quality coffee and unique
coffeehouse experience.
Customer profiling:
Customer profiling of Starbucks before repositioning, in bullet points:

- Age: 18-45 years old

- Gender: Both male and female
- Income: Middle to high-income earners
- Education: College-educated or higher
- Occupation: White-collar workers, students, professionals, and business
people
- Lifestyle: Busy, on-the-go, and value convenience
- Personality: Trendy, sophisticated, and cosmopolitan
- Behavior: Frequent coffee drinkers, loyal to Starbucks, and willing to pay a
premium for high-quality coffee and unique coffeehouse experience
- Psychographics: Interested in social responsibility and environmental
sustainability, and value coffee as a lifestyle choice
Overall, the customer profiling of Starbucks before repositioning showed that
the company's target market was primarily middle to high-income earners who
were busy, on-the-go, and value convenience. The company's customers were
also college-educated or higher, and were interested in social responsibility and
environmental sustainability. Starbucks' customers were willing to pay a
premium for high-quality coffee and unique coffeehouse experience, and were
loyal to the brand.
Customer profiling of Starbucks after repositioning, in bullet points:

- Age: 18-55 years old

- Gender: Both male and female
- Income: Middle to high-income earners
- Education: College-educated or higher
- Occupation: White-collar workers, students, professionals, and business
people
- Lifestyle: Busy, on-the-go, and value convenience and sustainability
- Personality: Trendy, sophisticated, and cosmopolitan
- Behavior: Frequent coffee drinkers, loyal to Starbucks, and willing to pay a
premium for high-quality coffee and unique coffeehouse experience
- Psychographics: Interested in social responsibility, environmental
sustainability, and digital technology, and value coffee as a lifestyle choice
Overall, the customer profiling of Starbucks after repositioning showed that the
company's target market remained primarily middle to high-income earners who
were busy, on-the-go, and value convenience. However, the company's
customers were also interested in social responsibility, environmental
sustainability, and digital technology. Starbucks' customers were willing to pay
a premium for high-quality coffee and unique coffeehouse experience, and were
loyal to the brand.
Before repositioning, Starbucks' customer profiling showed that their target
market was primarily middle to high-income earners who were busy, on-the-go,
and value convenience. They were also interested in social responsibility and
environmental sustainability, and were willing to pay a premium for high-
quality coffee and unique coffeehouse experience. After repositioning,
Starbucks' customer profiling remained similar, but with an additional focus on
digital technology. Starbucks customers were still middle to high-income
earners who valued convenience and sustainability, but they were also
interested in social responsibility, environmental sustainability, and digital
technology. Overall, Starbucks' repositioning strategy focused on maintaining
its core customers while also expanding its customer base to include those with
an interest in digital technology.

Research marketing strategy:

  Starbucks marketing strategy incorporates digital interactions with customers

by implementing new ways to attract digitally registered customers. It offers
mobile order services and Wi-Fi sign-ins at its stores. Starbucks uses a large
variety of channels to market their product from social media to TV spots and
ads etc. There was no such knowledge about it in research. However, Starbucks
is known for conducting extensive market research to understand customer
preferences, needs, and behavior. Some other of the research marketing tactics
Starbucks may have used before repositioning could include customer surveys,
focus groups, social media listening, and data analytics to gain insights into
their target market's preferences, needs, and behavior. Starbucks may have also
used competitive analysis to understand their competitors' strengths and
weaknesses and identify opportunities for differentiation. By using these tactics,
Starbucks could have developed a better understanding of its customers' needs
and preferences and developed a repositioning strategy that would resonate with
its target market.

4 P's marketing mix

Product
Products are commodities and services that solve problems and satisfy the needs
of consumers. A product can be tangible, such as a vehicle or a piece of
clothing, or intangible, such as a cruise or house cleaning service. A successful
product either fills a void in the marketplace or offers a unique experience that
spikes demand.

Price
Price is the cost of the product that the consumer pays. During product
marketing, it is important to set a price that reflects the current market trends
and is affordable for consumers, yet at the same time is profitable for the
business. Price can fluctuate based on the supply and demand and the product's
sales cycle. While some businesses might lower the price to compete with the
market, others might inflate it -- especially if they are promoting a luxury brand.

Place
This is where and how the product or service is purchased by the customers. It
also entails where the product is stored and manufactured. Digital
transformation has evolved how products are sold -- online, small local shops or
global producers. This marketing plan also considers where the product is
advertised and in which format, such as magazines, online ads, radio,
infomercials or film product placements.

Promotion
Promotion refers to reaching the target audience with the right message at the
right time. It gets the word out and is an effective way to conduct a sales
promotion and connect with consumers. A promotional strategy aims to show
consumers why they would need a certain product and the reasons for buying it
over other products. The core of marketing communications, product
promotions push out specific and meaningful advertising through popular
channels: word-of-mouth seeding, social networking, Instagram campaigns,
print marketing, television commercials, email marketing campaigns, social
media marketing and more.
How Starbucks lost its focus?
Starbucks lost its focus in the mid-2000s due to rapid expansion and a shift
away from its core values. In an effort to increase profits, Starbucks began
opening new stores at a breakneck pace, leading to oversaturation in many
markets. This expansion also led to a decline in the quality of Starbucks'
products and services, as the company struggled to maintain consistency across
all of its locations. Additionally, Starbucks began to prioritize growth over its
core values of quality, community, and sustainability, which resulted in a loss of
customer loyalty and a decline in sales. Starbucks' shift away from its core
values also made it vulnerable to competition from smaller, independent coffee
shops that offered more authentic and personalized experiences. Overall,
Starbucks lost its focus by prioritizing growth and expansion over its core
values, which led to a decline in customer loyalty and sales.

4 P’s of Starbucks before repositioning

Before Starbucks' repositioning, its 4 P's were:

1. Product: Starbucks offered a range of high-quality coffee-based beverages,

teas, pastries, sandwiches, and merchandise. Starbucks' product line includes
high-quality coffee-based beverages, teas, pastries, sandwiches, and
merchandise.
2. Price: Starbucks' pricing strategy was premium pricing, meaning that they
charged a higher price than their competitors to reflect the quality of their
products.

3. Place: Starbucks had a widespread presence in the US and other countries.

They had company-owned stores, licensed stores, and joint ventures.

4. Promotion: Starbucks' promotion strategy was focused on creating a unique

customer experience by offering a comfortable and welcoming environment,
personalized service. They also used social media, advertising, and sponsorships
to promote their brand. It focused on creating a premium and exclusive image.
They marketed their products as high-quality and sophisticated, and their stores
were designed to create a premium and upscale atmosphere. Starbucks' branding
was centred around their iconic logo and the green color scheme, which helped
them build a strong brand identity. Their advertising campaigns focused on
promoting their products as a lifestyle choice for the sophisticated and
discerning consumer. Starbucks also used celebrity endorsements and
partnerships with luxury brands to enhance their image. Overall, Starbucks'
advertising and branding before repositioning was successful in creating a
premium and exclusive image, but it may have limited their appeal to a wider
range of customers.

4 P’s of Starbucks after repositioning

After repositioning, Starbucks' 4 P's are:

1. Product: Starbucks expanded its product line to include healthier food

options, cold drinks, and non-coffee beverages. They also introduced new
brewing methods and seasonal drinks.

2. Price: Starbucks continued with its premium pricing strategy, but also
introduced more affordable options to attract a wider customer base.

3. Place: Starbucks continued to expand its global presence, but also started
focusing on smaller, more intimate stores in urban areas to create a more
personalized experience for customers. They have company-owned stores,
licensed stores, and joint ventures.

4. Promotion: They have shifted their marketing efforts towards highlighting

their commitment to sustainability and ethical sourcing practices, as well as
their support for local communities. Focused more on digital marketing, social
media marketing strategies to reach a wider audience and mobile ordering to
make it more convenient for customers to order and pay for their drinks. It
focused on creating a more inclusive and accessible image. Starbucks has also
introduced more affordable options and expanded their product line to appeal to
a wider range of customers. Their branding has evolved to reflect this new
image, with a more modern and minimalist logo design and a shift away from
the iconic green color scheme. Starbucks' advertising campaigns now focus on
promoting their products as a part of everyday life and a way to connect with
others. Overall, Starbucks' advertising and branding after repositioning has been
successful in broadening their appeal to a wider range of customers while
retaining their core values and commitment to quality.

Analysis on 4 P’s of Starbucks

1. Product: Starbucks' product line is diverse and high-quality, which has helped
them build a strong brand reputation. They also offer seasonal drinks and
limited-time promotions to keep customers interested. However, their product
line can be seen as limited compared to other coffee chains.

2. Price: Starbucks' premium pricing strategy has helped them maintain a high
level of quality and exclusivity. However, it may also deter price-sensitive
customers from choosing Starbucks over other coffee chains.

3. Place: Starbucks' widespread presence and focus on smaller, more intimate

stores in urban areas has helped them cater to a wide range of customers.
However, their reliance on company-owned stores limited their growth potential
in certain markets.

4. Promotion: Starbucks' focus on creating a unique customer experience

through personalized service and high-quality products has helped them build a
loyal customer base. Their use of digital marketing and social media has also
helped them reach a wider audience. However, their ethical and sustainable
sourcing practices may not be a priority for all customers.

Overall, Starbucks' 4 P's have helped them build a strong brand reputation and
customer base. However, they may need to adapt their strategies to stay
competitive in the evolving coffee market.

Recommendation on how can Starbucks improve its 4 P’s.

1. Product: Starbucks can expand its product line to include more options for
customers with dietary restrictions. They could also introduce more innovative
and unique drinks to differentiate themselves from competitors. Enhance the
level of customization by allowing customers to personalize their beverages
even further. This could include expanding the range of syrups, toppings, and
milk alternatives, allowing customers to create unique combinationstailored to
their preferences. Introduce more seasonal and regional products to appeal to
local tastes and promote a sense of uniqueness across different markets. This
could involve partnering with local suppliers to showcase regional specialties
and foster community connections.

2. Price: Starbucks can offer more affordable options to attract price-sensitive

customers. They could also consider introducing a loyalty program to
incentivize repeat business. Offer bundled promotions that combine multiple
items, such as drinks and food items, at a discounted price. This encourages
customers to try new products while increasing the overall value perception.

3. Place: Continually enhance the in-store experience by investing in inviting

and comfortable store designs.Consider incorporating elements of local culture
or incorporating unique features that create a sense of community and
differentiate each store. Starbucks can explore new markets and expand their
presence in areas where they have limited presence. They could also consider
partnerships with other businesses to increase their reach.

4. Promotion: Starbucks can improve its digital marketing and social media
strategies to better engage with customers. They could also consider
highlighting their ethical and sustainable sourcing practices more prominently
in their marketing campaigns to appeal to socially conscious customers.
Showcase the unique aspects of Starbucks, such as the coffee bean sourcing
process, barista expertise, and community engagement. Use storytelling to build
an emotional connection with customers and create an authentic brand
experience.

Overall, Starbucks can focus on improving its customer experience and staying
ahead of trends in the coffee industry to remain competitive.

Recommendations for Starbucks advertising and branding

Starbucks' advertising and branding strategy has been focused on creating a

strong brand identity and emotional connection with customers. They have used
a variety of advertising channels, including television, print, and online media,
to promote their products and brand. Starbucks has also used experiential
marketing techniques, such as hosting events and partnering with other brands
and organizations, to create unique and memorable experiences for customers.
Starbucks' branding strategy has been centred around the idea of creating a
"third place" between home and work, where customers can relax and enjoy
high-quality coffee and food in a comfortable and welcoming environment.
They have also emphasized their commitment to sustainability and ethical
sourcing practices, which has helped to differentiate them from competitors and
appeal to socially-conscious customers. Overall, Starbucks' advertising and
branding strategy has been focused on creating a strong emotional connection
with customers and promoting their unique brand identity and values.

Starbucks monitoring and evaluation

Starbucks' monitoring and evaluation after repositioning has focused on
tracking customer feedback and sales data to evaluate the success of their new
branding and marketing strategies. They have continued to use traditional
market research methods, such as surveys and focus groups, to gather feedback
from customers and identify areas for improvement. Starbucks has also
increased their use of social media and online reviews to monitor customer
sentiment and respond to feedback in real-time. They have implemented new
metrics to track the performance of their stores and products, including
customer satisfaction ratings and sales data. Starbucks has also introduced new
technology, such as mobile ordering and digital rewards programs, to gather
more data about customer behaviour and preferences. Overall, Starbucks'
monitoring and evaluation after repositioning has been focused on gathering
data and feedback to inform their decision-making and improve the customer
experience.

Recommendation for monitoring and evaluation of Starbucks

One recommendation for Starbucks' monitoring and evaluation would be to

continue to increase their use of technology and data analytics to gather more
detailed insights into customer behaviour and preferences. By leveraging data
from sources such as mobile ordering and digital rewards programs, Starbucks
could gain a more comprehensive understanding of customer preferences and
trends. Additionally, Starbucks could use data analytics to identify patterns and
correlations in customer behaviour, which could help them to make more
informed decisions about product offerings, store design, and marketing
strategies. Another recommendation would be to continue to prioritize customer
feedback and engagement, and to use this feedback to inform their decision-
making. By soliciting feedback from customers and responding to their
concerns in a timely and meaningful way, Starbucks can build stronger
relationships with customers and increase loyalty. Finally, Starbucks could
consider expanding their use of social media and online reviews to monitor
customer sentiment and respond to feedback in real-time, which could help
them to identify emerging trends and respond quickly to customer concerns.

Conclusion

In conclusion, Starbucks' repositioning efforts have been focused on creating a

more customer-centric and sustainable brand. By investing in technology,
improving store design, and expanding their menu offerings, Starbucks has been
able to create a more personalized and convenient experience for customers.
Additionally, their focus on sustainability and ethical sourcing practices has
helped to differentiate them from competitors and appeal to socially-conscious
customers. However, there are still opportunities for Starbucks to improve their
advertising and branding strategy, such as by creating more unique and
memorable experiences for customers and communicating their sustainability
efforts more effectively. Overall, Starbucks' repositioning efforts have been
successful in creating a stronger and more customer-focused brand, but there is
still room for improvement as they continue to adapt to changing consumer
preferences and market trends.

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