The two legends turned a regular coffee joint into a coffee shop with a story. Starbucks positioned itself as a third place for its customers. Barbara Bean-Mellinger is a freelance writer who lives in the Washington, D.C. area. Percentage of all Starbucks US transactions that are not ordered via mobile: 70%. They bring in about 40% of Starbucks' sales. 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. The target age of Starbucks' market is 22 to 60, with the teen audience growing steadily. Data from 2004 showed the company was far from reaching existing markets. Green tea, decaf tea, wellness tea, Teavana bottled blends, and Royal English Breakfast tea latte are some of the beverages preferred by this group of the target audience. Work from home tips. The first Starbucks Coffeehouse did not open until 13 years after the company was formed. The decisions to promote sustainable coffee growing, open farmer support centers, reduce the company's own footprint, use recycled fiber cups, provide college opportunities to employees, open stores in underserved and less affluent areas, and work to improve surrounding communities appeal to the target audience that shares the company's mission of positive change. Ever since offering Wi-Fi to the public in 2002, the company's on-the-go audience has seen Starbucks as not just a pit stop, but as a mini-office where they can set up their laptops and attend to business while sipping their favorite beverages. Starbucks, a Market Analysis Starbucks is a major, world wide coffee retailer specializing in a variety of brands of blend coffee and iced beverages, among other related products. While they may not have had the computer at the age of two, they are the fast adopters of technology. With over 28000 stores, the company sprawls across 75 countries since the start of 2018. It is because the economy of Singapore is much prospered and grows 4.1% in 2013. The Motley Fool: Who is Starbucks' Favorite Customer? Adults in the market estimate about 49% of Starbuck’s business. Starbucks caters to their tastes with a list of available teas and tea concoctions that's as varied as its coffee offerings. Starbucks' target audience is laid back but driven. In the early stages of development for Starbucks, Schultz identified their target market as “affluent, well-educated, white-collar patrons (skewed female) between the ages of 25 and 44,” (Moon). The global coffee giant Starbucks uses big data and artificial intelligence to drive marketing, sales and business decisions. Suburbanites generally have very busy lives. The decision of selecting the target segments can be assessed by considering competitive factors, market factors, social, political and environmental factors (Jobber 1995). These customers tend to be professional urbanites with relatively high incomes, who are interested in socially responsible and environmentally friendly policies. Last updated 8/1/17. Instead, Starbucks will bring the coffee, eats or anything else on its menu to you through its expanding delivery service. These customers tend to be professional urbanites with relatively high incomes, who are interested in socially responsible and environmentally friendly policies. The company is also expanding its drive-thru options so commuters can pick up a brew without the inconvenience of finding a place to park. Considering how these customers are aware of the health trends, Starbucks extends a range of different teas besides its variety of coffee drinks. Adding to focus on a target demographic, Starbucks also wants to appeal to everyone and does this by branding itself as a lifestyle brand and serving several products for the non-coffee drinker who still wish to be apart of the Starbucks… While Starbucks also has regular customers who are black coffee purists, those people aren't the company's target market. Although Dunkin’ has been after the coffee-drinking market that makes up the largest piece of Starbucks’ revenue, and Starbucks for years has served pre-made or heat-and-eat fare, both brands are looking to increase food sales revenue and chip away at Panera Bread’s market share. Young adults, aged 18-24, are the next large group that Starbucks targets. Even the 50- and 60-year-olds rely on their smartphones to make their lives easier. These people carry the urbanite style even if they don’t reside in the city. When Starbucks completed its first IPO, it rebranded to the logo that it now uses in all its marketing efforts today. Starbucks has more than 28,000 stores in 75 countries. Why is it so? Starbucks’ target group is increasing and turning older, yet both the company and its customers are view changes as opportunities and stay enthusiastic about future scope. A target market, according to Kotler and Armstrong (2004), consists of a set of buyers who share common needs or characteristics that the company decides to serve. They know that moving forward entails flexibility and, like their favourite coffee store, they welcome the changes that arise with growth. So, I searched about marketing strategies of Starbucks and am going to write about it concentrating upon market segmentation, target, and positioning in order. 17. December 27, 2019 December 27, 2019 Francine D. Timms Analysis great , Writing based Focus on Marketplace Sections Article – Focus on marketplace sections There are four different marketplace segmentations that Starbucks espresso provides targeted to create its brand collateral in the sector. Plus purchase behaviors such as basket size, shopping trip time, and brand affinity Starbucks Target Market Demographics. With a highly successful mobile … As suburbanites, they spend a lot of time sitting in traffic, which makes their coffee splurge even more welcome. But if somebody markets a coffee shop, then he/she must target a specific kind of people with distinct preferences and interests like Starbucks does by targeting Naysaysers.Freelance workers are a great target for any kind of coffee shops which provide calm and enjoying atmosphere. That in the Pacific Northwest, there was one store for every 20,000 people whereas in the Southeast there was only one store for every 110,000 people. Starbucks coffee attracted the attention of a number of customers who needed a place a part from their home and office. Starbucks was estimated to have a 5% share. This is why Starbucks can be leading the world in the America fast coffee market. They travel a lot in cars from one place to another, like work, kids’ centers, stores, and gym, on a daily basis. Its target market comprises of consumers with specific attributes as well as needs that the company desires. Some Researches showed Starbucks … Number of My Starbucks … As of 2012, Starbucks gained annual revenue of $13.29 billion. Analyzing Starbucks’ location data and what it says about its go-to-market strategy and target audience. Market Demographics The target market of Starbucks composed of young, affluent, and tech-savvy customers. Another description you often hear of Starbucks' target audience is that they're urban. What is an IT reseller? Last updated 8/1/17. Since 2002, the company has been providing Wi-Fi facilities to the public. MARKETING STARBUCKS 8 Conclusion This document has charted the marketing endeavors of Starbucks both nationally and globally. See Starbucks consumer demographics such as age, income, education and ethnicity. Operating in over 55 countries with 151,000 full time employees, Starbucks has a stock market value of $51.64 billion. Which type of target market strategy are they using? Last updated 8/1/17. The people making the drinks do not appear to have the skills of a normal Starbucks employee. This makes your campaigns more precise because you can focus solely on serving smaller, more refined segments. Market Demographics. Starbucks has been very careful about its target market because for the last decade the consumption of coffee has been decreasing (Starbucks, 2016). These areas are located at over 60 miles from the urban settlements. The companies normally segment the market into demographics, geographic, psychographics, and behavioral things. Market segmentation. As of 2002,Starbucks employed 60,000 partners worldwide, 50,000 of those in the United States. Further, the company also wants to offer greater drive-thru choices to help customers avoid the hassles of parking. They have an urban-ish attitude, but they don't live in the city. Besides, the non-coffee drinkers too have their favorite eatables among desserts, sandwiches, and other snacks offered at Starbucks. Currently, Starbucks uses geographic and demographic segmentation by selecting the strategic location where there is a high population of coffee lovers and educated people. Even non-coffee drinkers have their favorite menu items, and just like the coffee shops of yore, Starbucks has sandwiches, desserts and other snacks. Why you must market to and reach your target audience. Further, smartphones are heavily used by 50-60 years old. Percentage of all Starbucks US transactions that are not ordered via mobile: 70%. To add juices and teas to its menu, Starbucks acquired Evolution Fresh, Teavana, and Tazo Tea Company. Starbucks clearly segment its clientele on demographic bases. On the other hand, Dunkin Donuts coffee has used their consumer information to determine the market trend and new ways to grow their company. After analyzing external and internal environment, company need to make marketing strategy to suite their target market. In this case Starbucks has planned his positioning in such a way that it distinguish their products from competing brands and give them the greatest strategic advantage in their target markets. Made from high-quality beans and brewed to form diverse flavors, Starbucks’ coffee is consumed in a manner the customer likes. The target market is a person who wants Starbucks quality coffee creamer. Much of their time is spent in the traffic, which calls for a frequent coffee splurge. Starbucks shoppers time of the day – When do Starbucks shoppers make their purchases? Yet it was only in the beginning that the company focussed purely on urbanites. According to the National Coffee Association, about 83 percent of adults drink coffee in the U.S. Marital status 5. Starbucks segmentation, targeting and positioning comprise marketing decisions directed at identifying appropriate group of people among the general public as future customers for the business and targeting this segment via positioning products and services that resonates well with their needs and wants. Academia.edu is a platform for academics to share research papers. The majority of these people are well-educated white-collar professionals who are conscious of their choices and keep up with the latest health trends. Starbucks has a descriptively simple statement to inspire and nurture the human spirit-“one person, one cup, and one neighbourhood at a time”. Target Market. Compared to other major retailers like Dunkin Donuts, McDonald’s, 7­11, and Wawa, Starbucks charges $1­$3 more per beverage but offers a much more extensive menu and inviting atmosphere than its competitors. The target age of Starbucks' market is 22 to 60, with the teen audience growing steadily. Demographic grouping is based on measurable statistics, such as: 1. They know that getting ahead requires adaptability and, like their favorite coffee store, they embrace the changes that come with growth. Starbucks main target market is men and women, following young adults, and a small percentage to teens and kids. Market Demographics The target market of Starbucks composed of young, affluent, and tech-savvy customers. Even though there are some regular visitors who consistently revel in a black coffee drink, such customers aren’t the actual target audience of Starbucks. 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