Starbucks Situation Analysis
Join now to read essay Starbucks Situation Analysis
A target market is a specific part of the qualified available market the company, here Starbucks US, tries to pursue. (Kotler)
The first thing one has to do is divide the market into segments. Market segments have to be measurable, substantial, accessible, differentiable and actionable. Then one has to choose a strategy to pursue these segments. Starbucks has developed a multiple segmentation managing approach instead of just focusing on one segment.
When distinguishing segments in a market, segments are a group of customers sharing the same need, one can use several variables to do so. Amongst them are:
Geographic segmentation
Demographic segmentation
Age, life (-cycle) stage, gender, income, generation, social class
Psychographic segmentation
Lifestyle, Values
Behavioral segmentation
Decision roles, behavioral variables (occasions, benefits, user status, usage rate, buyer-readiness stage, loyalty status, attitude), conversion-attitude
After the segmentation (that means after defining the characteristics