Starbucks

Starbucks- Segmentation, Targeting and Positioning

1. Starbucks Segmentation , Targeting and Positioning Targeting Premium Customers with Quality Products and Service Name- Rani Sharma Marketing Management

2. COMPANY OVERVIEW Starbucks Corporation  is an American   coffee  company and coffeehouse chain. Starbucks was founded in Seattle, Washington in 1971. As of 2018, the company operates 28,218  locations worldwide . The first Starbucks opened in Seattle, Washington, on March 31, 1971, by three partners who met while they were students at the University of San Francisco. The first Starbucks location outside North America opened in Tokyo, Japan. As of September 2018, Starbucks is present on 6 continents and in 76 countries and territories, with a total of 27,340 locations

3. Starbucks in India In January 2011, Starbucks Corporation and Tata Coffee announced plans to begin opening  Starbucks  locations in India . As of October 2018, Starbucks operates 126 outlets in 10 cities of India.

4. Locations State City No. Of Outlets Delhi New Delhi 17 Delhi Gurgaon 7 Delhi Noida 3 Maharashtra Mumbai 41 Maharashtra Pune 10 Karnataka Bangalore 16 Tamil Nadu Chennai 5 Telangana Hyderabad 7 West Bengal Kolkata 4 Chandigarh Chandigarh 1

5. P RODUCTS

6. Starbucks Segmentation, Targeting and Positioning 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.  In simple terms, segmentation, targeting and positioning refers to deciding whom to sell to, and positioning products and services accordingly.

7. Starbucks segmentation Demographic segmentation : markets by age, gender, income, ethnic background, and family life cycle. Main target market is men and women between the ages of 25-44, which accounts for 49% of its total business. Young adults aged 18-24, are the next large group that Starbucks targets. They bring in about the 40% of Starbucks sales. Geographic segmentation : markets by regions or country or the world, market size, market density or climate. Starbucks are located in upscale locations, near offices, and near any college campuses.

8. Type of segmentation Segmentation criteria Starbucks target customer segment   Geographic Region US, Canada, Latin America, Europe, Middle East, Africa, China and Asia Pacific region Density Urban   Demographic Age 18 – 44 Gender Males & Females Life-cycle stage Bachelor Stage young, single people not living at home Newly Married Couples young, no children Full Nest I youngest child under six Full Nest II youngest child six or over Full Nest III older married couples with dependent children Occupation Students, employees, professionals Behavioral Degree of loyalty ‘Hard core loyals’ Benefits sought Enjoying quality coffee in a relaxing atmosphere A place to chat with friends and relatives A place to work Personality Easygoing, determined and ambitious User status Regular users Psychographic Social class Middle and upper class Lifestyle Mainstreamer Aspirer Succeeder Explorer Reformer

9. Starbucks Targeting Targeting for young adults (aged 18-24): Starbucks position itself as a place, where college students can hang out, study, write papers, and meet people. Targeting for men and Women (aged 25-44) : Starbucks target this group creating the “third place” to go to between the home and work for relaxing experience and atmosphere, as customers within this range tend to have high income and professional careers.

10. Starbucks positioning "one person, one cup, and one neighborhood at a time" Mono segment positioning : The coffee chain giant targets premium customer segment only i.e. individuals who are willing to pay extra for the quality of products and services Adaptive positioning: Due to the tendency of increasing consumer health awareness, Starbucks Coffee developed coffee beverages with less calories such as Chai Tea Latte (103 calories) Caffe Misto (63 calories) and Iced Americano (11 calories) Standby positioning: Certain Starbucks beverages such as Frappuchino had to await changes in the market for certain period of time to find demand.

11. Positioning 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. Starbucks has a descriptively simple statement to inspire and nurture the human spirit - "one person, one cup, and one neighborhood at a time". Starbucks positioning strategy was customer base so that it can give the best service more than what the customers expect. Starbucks has gained a competitive advantage over customer satisfaction and employee satisfaction as Starbucks had developed its positioning strategy based on the customer and provided the utmost facility in terms of layout, furniture to the music, and in terms of employee satisfaction Starbucks make employee as a partners and gave them a personal security with a freedom to participate in the every decision of the business and make it successful