Starbucks: Examining Market Segmentation, SWOT, and Recommendations

This case study provides an overview of Starbucks, an American multinational coffeehouse chain, from its founding in 1971 to its current global presence with over 33,000 stores in 80 countries. It highlights the founders' inspiration from Alfred Peet and the company's initial focus on educated, white-collar customers. The analysis includes a discussion of Starbucks' products and services, emphasizing its reputation for quality, and a SWOT analysis noting its strong financial performance. Recommendations are made to address the pricing strategy to broaden the customer base beyond high-income individuals. The study concludes that Starbucks has a strong brand image but could benefit from expanding its market reach by offering more affordable products. The case study references academic sources that discuss Starbucks' marketing strategies and their impact on consumer behavior.

STARBUCKS

INTRODUCTION
Starbucks is an American corporation which
has multinational chain of roaster reserves and
coffee houses there headquarters are in
Seattle, Washington. in 2021 November, the
firm has approximately 33,833 stores in 80
countries.

OVERVIEW OF THE COMPANY
Starbucks founder is jerry Baldwin, zev siegl
and gordon bowker they opened there first store
of Starbucks in 1971 near the place names pike
place market in Seattle. the three founders of this
firm has two things which are that is there
background was academia, and they loved coffee
and tea.

HISTORY
The major inspiration of Starbucks was
Alfred peet, one of the founder Alfred was a
Dutch immigrant who started importing fine
Arabica coffees into US during the time of
1950s. Alfred was an inspiration for
Starbucks founders to base their business
model to sell the products

PRODUCTS/SERVICES
Major products for which Starbucks stands for is
good cup of coffee but the company's passion is
poured into its services and product quality.
Starbucks has made reputation and profit in excess
because of there quality of products and services. the
brand image of Starbucks is made through its main
product which is the coffee.

MARKET SEGMENT
Starbucks in early time has focused on the market
more which mainly approached educated
customers and those which had white-collar jobs.
however, afterwards they discovered more growth
and opportunities in the industry, the founders
started to set strategies to make impact and a
broader scope of market segment.

SWOT ANALYSIS
Strengths- the main strength of this
company is that it has strong financial
performance which automatically
resulted in company more and more
stores spotted around the world with
different products and services.

RECOMMENDATIONS
The company can work on its over prized products as Starbucks
only target the high class and rich people, the company should
lower there price of the product through this they can target the
customers which are large in number.

CONCLUSION
This project can be concluded, the company Starbucks hold strong brand
image and goodwill in the target market. this company was started in US
with one small store and now it has many stores worldwide. the market is
mostly segmented in high class and rich people which sets some limits of
the firm.

REFERENCES
• Subramaniam, 2020. impact of social media on digital marketing: Starbucks marketing
strategy on twitter. case study, 2, pp.1-7.
• Nair, and et. al, 2021. the effect of Starbucks marketing campaigns on consumer buying
behaviour. Asia pacific journal of management and education (apjme), 4(1), pp.72-81.