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Segmentation and Targeting - Essay Example
Author : gorczanyfabian
Pages 3 (753 words)
Segmentation and Targeting Name Institution Segmentation and Targeting Starbuck Company Introduction The Starbuck Company was established in 1971. The founders Gordon Bowker, Jerry Baldin, and Zev Siegle had a vision of enlightening customers about fine coffee…
Starbuck has experienced tremendous growth since it was founded. Identify the company’s target market and positioning strategy The level of coffee consumption in the United States has been on a downward trend, especially in the late twentieth century. However, Starbuck has been quite cautious when choosing its target markets. A target market can simply be defined as a group of consumers who share the same interests that a particular company selects to serve. The process of choosing a target market can be undertaken by evaluating social, environmental, political, and competitive factors. Consumers bargaining power and entry barriers all fall under the category of market factors. The prices offered by Starbucks were extremely high and the company was trying to develop a new culture for its customers. Considering that Starbuck was very careful when it came to coffee production, the company managed to maintain a stable relationship with its suppliers hence, it faced minimal threats and competition (Starbucks Corporation SWOT Analysis, 2008). Office employees with both middle and high revenue were the sole target for Starbuck. Schultz wanted Starbuck to be the place where people could meet and relax on their way home, after work and socialize with each other. Therefore, the company was aggressive in meeting the needs of the consumers. Great consideration was also placed on the arrangement of the store. ...