(DOC) Starbucks Marketing Assignment

STARBUCKS CORPORATION
1. General introduction
Starbucks is a famous coffee brand in the world. Starbucks coffee company is
headquartered in Seattle, Washington, USA; In addition, the airline has more than
23,000 stores in 64 countries.(Starbucks, 2021)
History:
The first Starbucks coffee shop was established at 2000 Western Avenue (Seattle,
Washington) on March 30, 1971 by 3 people: Jerry Baldwin, English teacher, Zev Siegl,
history teacher, and Gordon Bowker, Writer.
Inspiration: Inspired by Alfred Peet, founder of Peet's Coffee & Tea brand, the
founders of Starbucks coffee brand originally purchased green coffee beans from
Peet's. Sometime later, the shop moved to 1912 Pike Place, where it still exists today,
and they also started buying coffee beans directly from the farms. (Starbucks, 2021)
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(Starbucks, 2021)
Over 40 years of establishment and development, Starbucks not only confined itself to
Seattle or the US but even spread beyond the continent, bringing the modern art of
enjoying Italian coffee to other countries such as Japan, Hong Kong, South Africa...
The Starbucks coffee brand now serves more than 40 million customers a week and
sells 4 billion cups of coffee a year. Starbucks does not have a franchise policy and
does not intend to do so in the future.
2. Segmentation of Starbucks
“Market segmentation involves dividing large, heterogeneous markets into smaller,
homogenous segments that can be reached more efficiently and effectively with
products and services that match their unique needs.” (Curriculum BTEC, 2021)
Starbucks’ primary strategy for increasing market share in the industry is to focus on
certain market segments. The coffee chain behemoth uses all four segments in terms of
demographic, psychographic, geographic, and behavioral. In the following sections, I
will illustrate each segment that Starbucks employs in considerable detail.
Demographic Segmentation
Age Under 22 23 to 44 45 to 54 Above 55
Gender Both Male and Female
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