Market Segmentation Of Starbucks

1273 Words 6 Pages
• The industry Starbucks is in and its target market

Starbucks primary industry operates and competes in the retail coffee and snacks store industry. Starbucks is at the top of the industry with a market share of 36.7%, Dunkin Brands with 24.6% and other competitors to it like Tim Hortons and McDonald’s taking the rest. Starbucks and Dunkin brands are more than 60% of the total market share which means they have a big amount of power in the retail coffee industry trends.
Starbucks’ primary target market is men and women aged 25 to 40. They account for almost half (49 percent) of its total business. Starbucks’ appeals to this age group through different ways like through hip, contemporary design that is consistently used in its advertising
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They are used to identify the appropriate group of people among the general public as future customers for the business. From this information they target that segment of people by positioning products and services that are in their wants and needs. Meaning segmentation, targeting and positioning is to decide who to sell to and from that decide how to positon products and services accordingly.
Starbucks Coffee uses the following types of positioning:
♣ Mono segment positioning. Starbucks targets the premium customers segment of people who are willing to pay extra for the quality of their products and services
♣ Adaptive positioning. Because of a segment of the target market are increasingly becoming aware of their health. Starbucks developed coffee beverages with less calories to cater to that particular segment for example Chai Tea Latte (103 calories) Caffe Misto (63 calories) and Iced Americano (11 calories)
♣ Standby positioning. There are Starbucks drinks like the Frappuccino that have to await changes in the market for a certain period of time to find demand.

• Franchise Purchase and Associated
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1. You should own 500,000 pounds. This would be used to set up a suitable Starbucks structure for you.
2. You would have acquired a lot of experience in the food and beverage industry and you should own or be running a multiplication business or restaurant. The restaurant you are managing should be about the size of Starbucks.
3. You should be willing and able to open a lot of units of Starbucks in a very short time. You should be able to open at least 20 locations in 5 years of starting the business. It should be known that Starbucks first 45 franchised locations were owned by 9 franchisees only. That is an average of 5 Starbucks locations per owner. After the first 9 franchisees, Starbucks decided that it has had enough of franchises.
4. Starbucks would assist the franchisee in getting a suitable location, and the company’s development team would always be on ground to see that the franchisee keeps to all the

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