Sunday, November 27, 2011

Ch. 8: Segmenting and Target Markets


     Starbucks market segmentation strategies have been to target well educated adults as a read in an article where it shoes how Starbucks uses demographic segmentation as a way of selling its products. "Starbucks is focusing on what it calls as its ‘core customers’— educated, with an average age of 42 and an average income of $90,000. About 15 years ago, Mr. Schultz said". Focusing on age, gender, sex, income, ethnic background, and family life cycle they provide for their target market as said in the article i read they also have to focus on the target markets offspring since these children most likely will be accompanying their parents to a Starbucks store and their parent s will need to feed their children. Now Starbucks is starting to put many snacks, kid friendly drinks, desserts and foods available for kids. Providing for the target market doesn't just end with providing a beverage for a 42 year old but also for proving to who come with them into a Starbucks store.
     Starbucks mainly uses segmentation strategies such as geographic segmentation where they sell in a certain are they don't sell everything in all stores exactly. especially in different countries. With its grand opening of its 500th store in the Latin America region. The company’s newest store in this region is located in Santiago, Chile. They change up stores depending on its location so that it can still have a sort of franchise owner ship but if someone from New York goes to this Starbucks they will still recognize it. 
     Positioning Starbucks products into a marketing mix influences their customers to the point that a loyal Starbucks customer will never switch to any other brand of coffee because Starbucks is s much superior item. The position that has taken over the products in the minds of customers has been both of a great marketing and also by the almost feeling of being involved with the decision making of the company. Attention is given to the customer and drinks are tailored to liking. One-to-one marketing strategy has been a very successful key for the successes of Starbucks because while ordering at least to the Starbucks i have gone to they don't just take your order they have a conversation with all of their customers and make them feel welcomed unless is a store in 42nd street were there are no chairs and its just in and out. But Starbucks understand the little simplicity that it takes just to jot down someones name and ask for the spelling sometimes... and then cater to what ever you may want even if its the longest order on the menu which is just s variation to the order this is how Starbucks is able to keep their customers happy. Having so many variations makes people feel as though the drink is made especially for them only (if their able to understand the Starbucks language) with 87,000 ways to change up a simple coffee.
     Starbucks has also been repositioning to changing people opinion of their coffee. They stand up for traders rights and make sure they have a good percentage of their coffee brought from farmers in Latin America, Africa and India. They are standing for causes like creating jobs for america by donating $5 to Starbucks ( not really sure how these help even after reading their statements) but you get a bracelet for showing your support for the cause of creating jobs for America.
http://www.youtube.com/watch?v=Muh6I1TnVg4

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