Starbucks Target Market
Different organizations have different abilities that allow them to better serve their target market. This is why different companies choose to focus most of their attention to particular segments. According to Bussing-Burks (2009), Starbucks Company chooses to focus primarily on the psychographics, demographics and their customers lifestyles. It is with the gathered information about these segments that Starbucks Company can serve better its customers.
According to Weinstein (1994), demographics include things like sex, age, education, marital status, occupation, education and income. The Starbucks Company will target females and males, mainly aged 18-30 years. However, Starbucks Company caters for the needs of everybody. Because the young children usually do not drink coffee, Starbucks Company will offer a wide range of non coffee beverages to take every need for the whole family. Moreover, Starbucks Company will focus to target high school final years, university students and the newly employed people. This is because if they have jobs, it is certain that they will bring a big income for the company.
Psychographics according to Weinstein (1994) are based on the activities, opinions and interests of the customers. Therefore, basically it is how the customers spend their time, their priorities and preferences and their feelings about issues and events. This form of applied research on consumers will prove to be valuable tool for marketing that will help in consumer segments identification that will likely to be responsive to the specific marketing messages.
Bussing-Burks (2009) observed that Starbucks Company will continue to be involved heavily on arts and charity, and in making great efforts to be environmentally and socially responsible. Starbucks Company will participate actively in AIDs benefit in every store in all stores. Starbucks will set up shelters for the children’s that are underprivileged as well as donate money. By Starbuck participating in different positive events and causes, the company will gain favorable exposure.
- To diversify the business to other industries to target large potential market by 2017
- To reduce prices by 15% to accommodate more people and to reach more people by 2017
- To increase the company’s presence in the home market and the industry by 10% by 2017
Bussing-Burks, M. (2009). Starbucks. Santa Barbara, Calif: Greenwood Press.
Weinstein, A. (1994). Market segmentation: Using demographics, psychographics, and other niche marketing techniques to predict and model customer behavior. Chicago, Ill: Probus Pub. Co.