The Starbucks corporation founded in 1971,still stands in the topmost names of coffee market not ONLY in USA but globally too..
obviously the aroma of its coffee is something unique but spreading that uniqueness to its needy is a big & a difficult step ….. and this step is planned well by its marketers in the form of MARKETING SEGMENTATION,TARGETING&POSITIONING..
when segmentation is applied to the business by the organisation,better tuning is set between the customers & them, comparative to mass marketing one..(Blattberg and Sen 1976; Beane and Ennis 1987).
every customer has different need and to meet every ones needs,MASS MARKETING APPROACH works rarely.For mass marketing approach to be successful,a lot of resources are required which may not worth it..so more competitive approach is adopted by Starbucks which works by dividing customers in groups then targeting the most attractive ones for the effective positioning of the products…
Varied customer needs are satisfied by companies with the help of market segmentation & even scale economies are maintained. (Dibb and Simkin 1996).
when Starbucks was launched , its aim was not just selling the coffee ..because in USA coffee bars were there since 1960’s,its main aim was to stand unique from rest by making customers know the aroma of dark roasted coffee & high quality coffee..
Innovation (Kerin, 1992) and competitive analysis (Varadarajan, 1992)are the two organisational competitiveness which gets contributed by marketing..
Earlier Starbucks’ market was based on SOCIO ECONOMIC segmentation with the focus on business class people(social class people) desired to have a cup of coffee in good atmosphere..
Starbucks also had GEOGRAPHIC AND DEMOGRAPHIC SEGMENTATION, as they selected store locations in the places where they could find the educated and office coffee lovers (Dibb and Simkin, 1996).
IN demographic segment, firstly men &women (25-44 yrs of age) are focused & they constitute 49% of their total business.. secondly, young adults(18-24) are included and they constitute 40% of Starbucks’ sales.
STARBUCKS also uses GEOGRAPHIC SEGMENTATION as its stores locations are specifically near offices and colleges..
In psycho-graphic segmentation, STARBUCKS focuses on individuals lifestyle and attitude of having something with high value-high price (Solomon et al., 2002).
The basic philosophy of marketing is logically implicated by concept of target marketing (Lancaster and Massingham, 1993).
Sometimes marketers prefer that company should launch their product in a new market by serving a single segment(niche market) and thus target their customers in a profitable way to get the best customer value and maintain it overtime and once its success,they start adding more and more segments this is what Starbucks followed. Starbucks did the same thing, they targeted the parents with the young children and it was hit concept.they targeted this group by offering drinks with a great appeal & created the THIRD PLACE by providing the relaxing atmosphere between home and office as this segment customers tend to have high income…
then more segments were further added by it as more product range was added & teenagers were included(Kotler and Armstrong, 2006).
This group is targeted with the essence of technology & innovations.For them ,a place was a created to hang out,date,write papers ,meet people and whatever they feel like..
Once the target markets are decided, now next step comes to position the products in the minds of the targeted customers in relation to its competitors… its true that PERCEPTION IS REALITY in consumer behavior.
The idea was UNIQUE MARKETING POSITION as the consumers would never buy the product with similarities to other in a competition thus giving the highest benefit in the market targeted.
Starbucks has positioned themselves in the market as a brand with high reputation (Kotler and Armstrong, 2006).
AS the serious coffee drinkers,non coffee drinkers and conscious drinkers segments with varied needs are distinct segments which can get stimulated by marketing..this marks the effectiveness of this STP strategy (Jobber and Fahy, 2006). THUS, with the help of this strategy Starbucks is positioned as high price high value brand..
“one person, one cup, and one neighborhood at a time” is a descriptive statement used to describe Starbucks.
POSITIONING STRATEGY:Starbucks positioning strategy is CUSTOMER BASED so that best services could be given by them more than their customers expectations and competitive advantage is gained by
a Customer satisfaction- The development of positioning strategy of the Starbucks is based on the customer and provided the high class facilities & surroundings such as music,furniture etc….
b Employee satisfaction- Employees are made partners with the provision to participate in the decision making process for the business to be a great SUCCESS (Porter & Miller, 1985, Porter, 1998)…
Thus spreading its coffee’s aromaa from segment to segments,achieving great targets in the river of success with great work…
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