Starbucks Marketing Case Study
1.Background: Starbucks, founded in 1971, is a multinational chain coffee shop in the United States and the largest chain coffee shop in the world. In addition to selling coffee, Starbucks also sells drinks such as tea and drinks, as well as snacks such as sandwiches and pastries. Starbucksglobal stores are structured according to different market conditions. At present, there are four modes of cooperation: sole proprietorship, joint venture, licensing agreement and authorized operation.2.Discuss the different target markets of brands (5 points):Target market refers to the process of choosing one or more consumer groups as the target market and formulating marketing strategies based on market segmentation. Starbucks concentrates its resources on the most promising young urban groups, which fall into five main categories. The first is young students who pursue individuality. The second is people who have lived abroad. The third is urban workers. Fourth, freelancers (writers or journalists). Starbucks has made different marketing strategies for these groups. Fifth, regular workers. For example, young people who pursue individuality need a free space to taste coffee and talk freely. Starbucks stores are divided into indoor and outdoor stores to fully meet the different needs of the young generation for space. For some people who have lived abroad, their need is to drink authentic coffee, while Starbucks provides top-notch beans and professional coffee makers to make coffee. For some trendy workers, they need a unique and elegant place, while Starbucks offers a unique cultural cafe. For some freelancers, they like to enjoy different kinds of coffee and excellent Internet to work or study. Starbucks also provides a comfortable venue, a fast free Internet and coffee from different parts of the world. Finally, for regular workers, they can quickly buy delicious bread or coffee at Starbucks.
3.Identify and evaluate brand positioning strategies and discuss how to reach target markets (5 points):Distinguish:Starbucks focuses on refinement, which is located in the “boutique coffee shop”, aiming at people with higher consumption level. In addition, Starbucks differentiates drinks according to gender. For example, for men, they can drink authentic American coffee, black coffee and latte. Women have more choices, such as traditional cappuccinos and mochas. In addition, they can choose different juices and milkshake drinks. And to provide the highest quality coffee and related peripheral products, such as coffee beans, coffee brewing utensils, cups and all kinds of pastries and so on. Both coffee-loving and coffee-loving groups can buy their favorite products at Starbucks. Starbucks also calls for creating a leisure-oriented, elegant and comfortable third space for consumers, which is different from office and family, with “the highest quality coffee shaping unique cultural symbols and making customers feel the fragrance and spiritual liberation of coffee”. In order to make customers feel the high quality and purity of coffee beans, Starbucks has banned employees from using perfume, and resolutely put an end to chemical flavored coffee beans and not to sell cooked food, soup soup and other strong smell video, so as to preserve the strong aroma of pure coffee in the whole indoor space. It is worth mentioning the location of Starbucks. To cater to the image of high-end coffee, the location of Starbucks is close to the city center and the university. By carefully choosing the geographical location and the surrounding environment, Starbucks can not only successfully attract the major consumer groups originally designated by Starbucks, but also deepen the general consumers understanding of the image of Starbucks boutique, thus creating a considerable potential consumer group.