You should know this, because you are all part of the target group of starbucks. The target group of starbucks are young urban adults (approximately 18-45 year olds) coffee consumers in the capital area. This targeting would concentrate on consumers that value spending time in coffee stores that offer a relaxing and comfortable atmosphere. They are not only interested in grabbing a cup of coffee but also would like to enjoy the Starbucks experience. For this they would be willing to spend a little over the average price for specialty coffees. Therefore the target segment would mainly concern young adults (approximately 18-45 year olds) that have regular incomes. Marketing should be focused on reaching youth customers with varying tastes and interests. Starbucks strives to provide excellent service and along with its large variety of products the comfortable atmosphere that Starbucks’ stores have, also offers young adults the chance to sit down and relax if they wish. The lifestyle of urban young adults is also typically fairly hectic, which suits Starbucks’ coffee-to-go culture.
As we know it is more expensive to attract new customers than it is to retain current ones. Starbucks knows this and this fact confirms it. How do they do this? We’ll get into this during the presentation.
One of the principles of Starbucks is to recognize that profitability is essential to their future success. They want to achieve this goal, by reinventing its food menu. The assumption is that its loyal fans are willing to pay top-dollar for a cup of coffee, so they must be able to afford a snack or lunch on the side. Food contributed about 22% of Starbucks’s same-store sales growth in the U.S. in the latest quarter, with the help of new items like salad bowls. The company is focusing on productivity through new products and a very important expansion through the grocery channel,
where they are making great strides with K-Cups and other products that give their brand a presence in consumers’ homes. So basically, their goal in the future is to achieve a bigger market share worldwide and create a bigger profitability.