BA440 WK 5 Marketing Strategy Starbucks
Trouble Brews at Starbucks
Grantham University
Trouble Brews at Starbucks
A. Primary (and Secondary) Target Markets
Primary target market Starbucks’ primary target market is men and women ages 25 to 40. They account for almost half, 49 percent, of their total business. Starbucks’ appeal to this consumer age group through hip, contemporary design that is consistent in its advertising and decor, and working to keep its products current as status symbols. Customers tend to be urbanites with relatively high income, professional careers and a focus on social welfare. This target audience grows at a rate of three percent annually (O’Farrell, n.d.).
Secondary target market (optional) Starbucks’ secondary target market is young adults, ages 18 to 24, total 40 percent of Starbucks’ sales. Starbucks positions itself as a place college students can hang out, study, write term papers and meet people. Starbucks appeals to this consumer directly through introducing technology as soon as it become available, focusing on social networking and actively cultivating a “cool” image. The young adult audience grows 4.6 percent each year (O’Farrell, n.d.). Kids and teens are also a large part of Starbucks’ target audience. Together, customers age 13 to 17 accounts for just 2 percent of Starbucks’ sales, but most items for kids are purchased by the parents. Whether the focus is on the steamed milk that Starbucks’ baristas refer to as “babyccinos” or the sugary, caffeinated, whipped cream topped coffee drinks that are so popular with teenagers, kids and teens form a large part of Starbucks business. Kids go there with their parents; both mother and child leave with cup in hand. Teens meanwhile use Starbucks as a place to hang out with friends or study. Starbucks may not cater directly to kids, and risk criticism about the high calorie and caffeine content of some of its drinks, but it does make its products kid-friendly, offering special child sizes for
Grantham University
Trouble Brews at Starbucks
A. Primary (and Secondary) Target Markets
Primary target market Starbucks’ primary target market is men and women ages 25 to 40. They account for almost half, 49 percent, of their total business. Starbucks’ appeal to this consumer age group through hip, contemporary design that is consistent in its advertising and decor, and working to keep its products current as status symbols. Customers tend to be urbanites with relatively high income, professional careers and a focus on social welfare. This target audience grows at a rate of three percent annually (O’Farrell, n.d.).
Secondary target market (optional) Starbucks’ secondary target market is young adults, ages 18 to 24, total 40 percent of Starbucks’ sales. Starbucks positions itself as a place college students can hang out, study, write term papers and meet people. Starbucks appeals to this consumer directly through introducing technology as soon as it become available, focusing on social networking and actively cultivating a “cool” image. The young adult audience grows 4.6 percent each year (O’Farrell, n.d.). Kids and teens are also a large part of Starbucks’ target audience. Together, customers age 13 to 17 accounts for just 2 percent of Starbucks’ sales, but most items for kids are purchased by the parents. Whether the focus is on the steamed milk that Starbucks’ baristas refer to as “babyccinos” or the sugary, caffeinated, whipped cream topped coffee drinks that are so popular with teenagers, kids and teens form a large part of Starbucks business. Kids go there with their parents; both mother and child leave with cup in hand. Teens meanwhile use Starbucks as a place to hang out with friends or study. Starbucks may not cater directly to kids, and risk criticism about the high calorie and caffeine content of some of its drinks, but it does make its products kid-friendly, offering special child sizes for
References: Ames, A.V., Goss, T.P., & Klatt, T.A. (2012). Writing & Documenting in APA A Concise Guide for GU Students (2nd ed.) Cooke, J. A. (2010). From Bean to Cup: How Starbucks Transformed Its Supply Chain. Retrieved March 2, 2014 from http://www.supplychainquarterly.com/topics/ Procurement/scq201004starbucks/>. Ferrell, O. C., & Hartline, M. D. (2014). Marketing Strategy, 6th Edition. Mason, OH: South-Western Cengage Learning. Dawon, T Disleidy, P. (2012, December 20). Integrated Marketing Communications. Retrieved March 3, 2014, from http://starbucksmktg5.blogspot.com/2012/12/ch-16-integrated-marketing.html Melody (2014, January 10) O’Farrell, R. (n.d.). Who Is Starbucks ' Target Audience? Retrieve March 01, 2014, from http://smallbusiness.chron.com/starbucks-target-audience-10553.html Starbucks Company Profile (2014, January) Starbucks’ Distribution Channel (2012). It 's Not Just Coffee, It 's Starbucks. Retrieved March 2, 2014, from http://thecoffeeteam.blogspot.com/2012/02/starbucks-distribution-channel.html Starbucks’ Global Supply Chain (n.d.) Walsh, T. (2014, January 8). Starbucks Makes a Big Bet on New Product Mix in 2014. Retrieved March 3, 2014, from http://www.fool.com/investing/general/2014/01/08/starbucks-makes-a-big-bet-on-new-product-mix-in-20.aspx