Starbucks CoffeeStarbucks CoffeeCase analysisStarbucks coffeeOriginally when Starbucks began they targeted the young college students, with slightly higher than average income levels. After this initial target market Starbucks has since realized that they could target specific neighborhoods and social classes. Different customers are more willing to pay for luxury good now more than ever. With that in mind, through Starbucks aggressive expansion techniques they have begun targeting almost every demographic.

“McDonalds is planning to capitalize on the publics willingness to pay $4 for a cup of coffee by hiring baristas and dropping espresso machines in 14,000 of their fast-food outlets. Meanwhile, Starbucks, with business lagging, is fighting back with an “if you cant beat em, join em” strategy, by offering heated breakfast sandwiches and adding drive-thru windows to some of their locations.” (Tancer, 2008) As McDonalds and other chains realize the money in luxury coffee more companies will begin to enter the marketplace. One the other side of the spectrum you have the small local coffee bars that were around before Starbucks took over the marketplace. These smaller coffee shops have their core customers who will not give their business to anyone

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The Starbucks that had an estimated $500 million in profits in 2016, as well as the $839 for breakfast sandwiches, have been in the market several times since. With a $500 million operating ratio, the company is certainly an affordable outlet for consumers looking to get their coffee on the go. Yet it is difficult for large companies to compete with a coffee-friendly one like Starbucks—and that’s exactly what this new initiative looks for. The goal of

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Initial Target Market Starbucks And Cup Of Coffee. (August 9, 2021). Retrieved from https://www.freeessays.education/initial-target-market-starbucks-and-cup-of-coffee-essay/