Starbucks Segmentation, Targeting and Positioning – Targeting Premium Customers with Quality Products and Service
Starbucks segmentation, targeting and positioning comprise marketing decisions directed at identifying appropriate group of people among the general public as future customers for the business and targeting this segment via positioning products and services that resonates well with their needs and wants. In simple terms, segmentation, targeting and positioning refers to deciding whom to sell to, and positioning products and services accordingly.
Starbucks Coffee uses the following types of positioning:
– Mono segment positioning. The coffee chain giant targets premium customer segment only i.e. individuals who are willing to pay extra for the quality of products and services.
– Adaptive positioning. Due to the tendency of increasing consumer health awareness, Starbucks Coffee developed coffee beverages with less calories such as Chai Tea Latte (103 calories) Caffe Misto (63 calories) and Iced Americano (11 calories).
– Standby positioning. Certain Starbucks beverages such as Frappuchino had to await changes in the market for certain period of time to find demand.
– Sustainability positioning. The world’s largest coffeehouse chain attempts to shift customer attention to sustainability aspect of its business. For example, by the end of FY21 there were 2779 Greener Store framework Starbucks branches[1]. This store format aims to achieve reductions in carbon emissions, water usage and landfill waste.
The following table illustrates Starbucks segmentation, targeting and positioning:
| Type of segmentation | Segmentation criteria | Starbucks target customer segment
|
|
Geographic |
Region | US, Canada, Latin America, Europe, Middle East, Africa, China and Asia Pacific region |
| Density | Urban | |
|
Demographic |
Age | 18 – 60 |
| Gender | Males & Females | |
| Life-cycle stage | Bachelor Stage young, single people not living at home
Newly Married Couples young, no children Full Nest I youngest child under six Full Nest II youngest child six or over Full Nest III older married couples with dependent children |
|
| Occupation | Students, employees, professionals | |
| Behavioral | Degree of loyalty | ‘Hard core loyals’ |
| Benefits sought | Enjoying quality coffee in a relaxing atmosphere
A place to chat with friends and relatives A place to work |
|
| Personality | Easygoing, determined and ambitious | |
| User status | Regular users | |
| Psychographic | Social class | Middle and upper class |
| Lifestyle[2] | Mainstreamer
Aspirer Succeeder Explorer Reformer |
Starbucks segmentation, targeting and positioning
Starbucks Corporation Report contains the above analysis of Starbucks segmentation, targeting and positioning and Starbucks marketing strategy in general. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Starbucks. Moreover, the report contains analyses of Starbucks leadership, organizational structure and organizational culture. The report also comprises discussions of Starbucks business strategy, ecosystem and addresses issues of corporate social responsibility.
[1] Global Environment and Social Impact Report 2021, Starbucks Corporation
[2]According to Cross Cultural Consumer Characterization by Young & Rubican