STARBUCKS CORPORATION 1. General introduction Starbucksisafamouscoffeebrandintheworld.Starbuckscoffeecompanyis headquarteredin 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:InspiredbyAlfredPeet,founderofPeet'sCoffee&Teabrand,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) (Starbucks, 2021) 1
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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, homogenoussegmentsthatcanbereachedmoreefficientlyandeffectivelywith 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 AgeUnder 2223 to 4445 to 54Above 55 GenderBoth Male and Female OccupationAlmost Students Employees, Professionals Income-Middle to High income Life StageSingle,newly married couples Single,newly married couples, couples with children, couples with adult children Couples with children, couples with adult children Couples with dependent children EducationSecondary- High school, College, University Graduated SocialMiddle, Upper and High class 2
Status GeographicSegmentation CountryUS, Canada, Latin America, Europe, Middle East, Africa, China and Asia Pacific region AreaAlmost urban and city. Especially in upmarket areas, close to offices, and nearby a number of college campuses. Behavioral Segmentation Benefits Sought Enjoying a tranquil atmosphere, a location to meet together with friends and family, a place to study. Enjoying high-quality coffee in a tranquil atmosphere, a location to meet together with friends and family, a place to work. Enjoying high- quality coffee in a tranquil atmosphere, a location to meet together with friends and family, a place to work. Enjoying high- quality coffee in a tranquil atmosphere, a location to meet together with friends and family. User Status -Loyal customers, Regular users Psychographic Segmentation PersonalityDesire to try new things, determined Determined, easygoing, and ambitious people Life StyleModern,careabouttheenvironment,enjoydrinkingcoffee,enjoy collecting, etc. 3. Targeting of Starbucks Target Customer of Starbucks: Starbucks’s target customers are middle and high income class with the desire to buy premium products. Starbucks' consumer base made up of people aged 23 to 44 and strongly influenced by the urban lifestyle. It is a place where customers can relax, gather and socialize. This makes them alert about their 3
quality control and meet high expectations. It requires a mass market approach through the design of distinct product and marketing programs for different segments. Targeting Strategy of Starbucks:Because Starbucks regards the market as a single segment, they have used an undifferentiated marketing strategy to create and maintain the marketing mix from their start. The development of a brand that satisfies every consumer is a big issue when applying this target market strategy. It requires a mass- market approach through the design of distinct products and marketing programs for different segments. They used their services to achieve this focused approach without sacrificing quality, and they have succeeded in the business for many years. This is a reason why it was successful. 4. Positioning of Starbucks Starbucks wants to position its brand in the direction of being a quality and premium brand. Starbucks coffee chain positions itself as a highly regarded coffee chain with a high quality and high price, customers will be very satisfied with the money they spend in order to gain the trust and satisfaction of customers.Starbucks always controls the quality of its services and products in the most detail. Starbucks wants to differentiate its brand through the quality of its products and services.The actual proof to prove it is that in 40 years of development Starbucks has not franchised to any partners. That helps Starbucks to control the quality in the best way so as not to lose the quality of the original product or service. 4
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As for the Starbucks’ stores, the stores have a luxurious design and most have a unique look. Starbucks wants to give customers the best service when enjoying drinks or food at the store and impress customers with the unique features of Starbucks.In addition, each employee of Starbucks is carefully selected, the company always focuses on recruiting qualified employees.For Starbucks, focusing on the quality of the brand to customers is the top position. So, with the above proofs, we can see that Starbucks is going right with its positioning, you’ll get what you pay for. Based on a detailed study of customer psychology and requirements, Starbucks has created reasonable product, price, and distribution strategies. Starbucks's marketing strategy will remain the same as previously, with an emphasis on market expansion and market share. Starbucks' growth ambitions in Vietnam would certainly stimulate direct competitors in the beverage industry, such as Highlands Coffee and The Coffee House. This is where Starbucks stands in the market. References: Vi.wikipedia.org.2021.Starbucks–WikipediatiếngViệt.[online]Availableat: <https://vi.wikipedia.org/wiki/Starbucks> [Accessed 28 June 2021]. 5