Case Study: Starbucks

Topics: Psychographic, Marketing, Social class Pages: 2 (458 words) Published: March 24, 2013
1. Starbucks laid down its Market Segmentation in the following ways:

a. Geographic Segmentation:
Starbucks primarily laid down its segmentation in order to spread its outlets around various parts around America. It was not only targeting to settle its bases all over the country, but basically planning to be easily accessible, which is why it was also placed enormously in the same zone.

b. Demographic Segmentation:
Age= 24- 44 yrs.
Gender= Predominantly Female
Income= Comparatively Wealthier
Race= Predominantly Caucasian

c. Psychographic Segmentation:
Social Class= Upper Middle Class
Lifestyle= Better Educated and/or More Professional

d. Behavioral Segmentation:
Benefit Sought= Premium Coffee, Customer Service, Friendly Environment User Status= Potential and Regular Users
Loyalty Status= Strong

2. With the overflow of options, Starbucks grew into a lesser quality place.The Starbucks experience thus, changed first before the customers made their way. Although, Starbucks primarily focused on Concentrated Marketing, with the maximization of stores, changing economy, and competitions, it took a different turn. Starbucks was rather following Undifferentiated Marketing, as traditional customers were no longer as loyal as they were with the changing environment. Instant beverages were on demand, so Starbucks had its Market segments spread out to a larger segment, whose focus was not a premium product, but an instant, faster service.

3. Starbucks Market Segmentation is based as follows on the present day:

a. Geographic Segmentation:
Starbucks today, is not only a part of American culture, but also many different nations worldwide. Although its revenue is majorly sourced from within America itself, it has its grounds set internationally, as a huge potential is identified. b. Demographic Segmentation:

With the broadened market segmentation, the demographic segment has taken a pace too. It is no...
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