Starbucks
STP
Market Segmentation
All coffee lovers were potential market for Starbucks. However, Starbucks segmented market based on coffee connoisseurs who are also interested in experience and environment around coffee consumption.
Target Market Selection
Starbucks’ targeted market was the coffee enthusiasts who would love to have a ‘Third Place’ to hangout and relax either in group or solitary. Especially affluent, well educated, white collar patrons (skewed female) aged between 24 and 44.
Product and Service Positioning
Elite experience of coffee consumption with convenience and personal touch.
4Ps
Product & Service
Starbucks management envisioned a simple beverages business as ‘Experience’. Hence their product concept was much more widened than mere coffee vending. Starbucks has adopted the ‘Live Coffee’ mantra which is to build business around the coffee consumption experience. Hence the product and services offered by Starbucks were more focused around offering elite experience.
Continuous product innovation was most significant factor in Starbuck’s sales growth. New product introduction through rigorous R&D, business validation, and acceptance from partners helped Starbucks to effectively manage the wide product portfolio.
Starbucks believes in creating strong customer patronage by offering personalized service and achieving higher customer satisfaction levels.
Starbucks extended the service offerings by introducing some key programs such as ‘Stored-Value Card’. Such innovative service offerings led to increased visits and reduced transaction time (which is one of the major customer satisfaction parameter). Another add-on service offered by Starbucks was the wireless internet service.
Place / Channel
Starting with one coffee shop at Seattle, Starbucks has expanded over 5000 outlets across the world. Selection of point of sale was done very methodically by matching the demographics of area with profile of typical Starbucks drinker, amount of
Market Segmentation
All coffee lovers were potential market for Starbucks. However, Starbucks segmented market based on coffee connoisseurs who are also interested in experience and environment around coffee consumption.
Target Market Selection
Starbucks’ targeted market was the coffee enthusiasts who would love to have a ‘Third Place’ to hangout and relax either in group or solitary. Especially affluent, well educated, white collar patrons (skewed female) aged between 24 and 44.
Product and Service Positioning
Elite experience of coffee consumption with convenience and personal touch.
4Ps
Product & Service
Starbucks management envisioned a simple beverages business as ‘Experience’. Hence their product concept was much more widened than mere coffee vending. Starbucks has adopted the ‘Live Coffee’ mantra which is to build business around the coffee consumption experience. Hence the product and services offered by Starbucks were more focused around offering elite experience.
Continuous product innovation was most significant factor in Starbuck’s sales growth. New product introduction through rigorous R&D, business validation, and acceptance from partners helped Starbucks to effectively manage the wide product portfolio.
Starbucks believes in creating strong customer patronage by offering personalized service and achieving higher customer satisfaction levels.
Starbucks extended the service offerings by introducing some key programs such as ‘Stored-Value Card’. Such innovative service offerings led to increased visits and reduced transaction time (which is one of the major customer satisfaction parameter). Another add-on service offered by Starbucks was the wireless internet service.
Place / Channel
Starting with one coffee shop at Seattle, Starbucks has expanded over 5000 outlets across the world. Selection of point of sale was done very methodically by matching the demographics of area with profile of typical Starbucks drinker, amount of