Company Case Starbucks

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1.Using the full spectrum of segmentation variables, describe how Starbucks initially segmented and targeted the coffee market. okay starbuck had made a goal and their initially segment was a Geographic segmentation, starbuck or Schultz intentions to open 10,000 new stores in just four years and then push Starbucks to 40,000 stores. In 20 years time, Schultz grew the company to almost 17,000 stores in dozens of countries.

2.What changed first—the Starbucks customer or the Starbucks Experience? Explain your response by discussing the principles of market targeting. One issue often mentioned was that Starbucks had developed an identity crisis with respect to its target customer and they realize the customer was far more likely to be female than male, most likely caucasian, and between the ages of 24 and 44, and also the Starbucks customer profile was clearly defined. The typical customer was wealthier, better educated, and more professional than the average American.

3.Based on the segmentation variables, how is Starbucks now segmenting and targeting the coffee market? Starbucks segmenting now would be typically built around demographics (age, income, gender…), psychographics (lifestyle, personality, values…), geography (city, neighborhood, zip code…), and other personal attribute.

4.Will Starbucks ever return to the revenue and profit growth that it once enjoyed? Why or why not? Starbucks was crushed by the recession, leaving it with no choice but to initiate morale-thumping layoffs and closing locations. It cut prices. It tweaked menu offerings. It paid the price for saturating the market. underlying health of its business had never been better, despite the challenges of higher costs and a weak economy
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