...Starbucks 1.Using the full spectrum of segmentation variables, describe how Starbucks initially segmented and targeted the coffee market.? 2. What changed first—the Starbucks customer or the Starbucks Experience? Explain your response by discussing the principles of market targeting.? 3. Based on the segmentation variables, how is Starbucks now segmenting and targeting the coffee market? 4. Will Starbucks ever return to the revenue and profit growth that it once enjoyed? Why or why not? - Starbucks had made a goal and their initially segment was a Demographic segmentation -Starbuck or Schultz intentions to open 10,000 new stores in just four years and then push Starbucks to 40,000 stores. -In 20 years time, Schultz grew the company to almost 17,000 stores in dozens of countries. Starbucks targeted the customer who fell in love with the Starbucks Experience who was: -Wealthier, better educated, and more professional than the average American. - More likely to be female than male. - Between the ages of 24 and 44. Starbucks customer changed first. There simply were not enough traditional customers around to fuel the kind of growth that Schultz sought. Starbucks became a less attractive place to hang out. The new breed of customer was less affluent, less educated, and less professional. As the customer profile evolved, the Starbucks Experience grew to mean something different. To the new breed of customer, it meant good coffee on the run. It was a place to meet and...
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...Segmentation, Targeting, and Positioning Segmentation, targeting, and positioning together comprise a three stage process. We first (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment andcommunicating that we have made the choice to distinguish ourselves that way. Segmentation involves finding out what kinds of consumers with different needs exist. In the auto market, for example, some consumers demand speed and performance, while others are much more concerned about roominess and safety. In general, it holds true that “You can’t be all things to all people,” and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable. Generically, there are three approaches to marketing. In the undifferentiatedstrategy, all consumers are treated as the same, with firms not making any specific efforts to satisfy particular groups. This may work when the product is a standard one where one competitor really can’t offer much that another one can’t. Usually, this is the case only for commodities. In the concentratedstrategy, one firm chooses to focus on one of several segments that exist while leaving other segments to competitors. For example, Southwest Airlines focuses on price sensitive consumers who will forego meals and assigned seating for low...
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...egmentation, Targeting, and Positioning Segmentation, targeting, and positioning together comprise a three stage process. We first (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment andcommunicating that we have made the choice to distinguish ourselves that way. Segmentation involves finding out what kinds of consumers with different needs exist. In the auto market, for example, some consumers demand speed and performance, while others are much more concerned about roominess and safety. In general, it holds true that “You can’t be all things to all people,” and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable. Generically, there are three approaches to marketing. In the undifferentiatedstrategy, all consumers are treated as the same, with firms not making any specific efforts to satisfy particular groups. This may work when the product is a standard one where one competitor really can’t offer much that another one can’t. Usually, this is the case only for commodities. In the concentratedstrategy, one firm chooses to focus on one of several segments that exist while leaving other segments to competitors. For example, Southwest Airlines focuses on price sensitive consumers who will forego meals and assigned seating for low...
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...1. Would consider Demographic segmentation, because she just starting her own small business, which is a sole priority ship. Which is for people working as an entrepreneur as herself. So she would have base some of it off of who like chocolate and who doesn’t also she need to know which chocolate people would buy more often, and where should she open her business. So that was demographic segmentation is when you want to know things about your consumer to get there interest in what you’re doing and if the location is right for that. So when you’re starting your own business you have to do a lot of things before you can even see progress from it. So it takes over time before you’re business start’s going unless you brand with another business which will be a b2b because that can get you off your feet with this business as well. 2. A segment would be concerted strategy because it focus on one aspect which is pet supply store. So it’s targeting animal’s owner to come to a store that can have deals for them that they will enjoy for their animals. Because the customer is always right. It also fall into value proposition, which give the customer a good perspective on they want as I proclaimed. They can also now in days buy their product online and walk into the store. 3. Micromarketing is basically when you have a specific item that you want and you’re interested in the product. People have lots of reason to be specific maybe for special occasion or just have a great day by...
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...Segmentation, Targeting, and Positioning Segmentation, targeting, and positioning together comprise a three stage process. We first (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment andcommunicating that we have made the choice to distinguish ourselves that way. Segmentation involves finding out what kinds of consumers with different needs exist. In the auto market, for example, some consumers demand speed and performance, while others are much more concerned about roominess and safety. In general, it holds true that “You can’t be all things to all people,” and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable. Generically, there are three approaches to marketing. In the undifferentiatedstrategy, all consumers are treated as the same, with firms not making any specific efforts to satisfy particular groups. This may work when the product is a standard one where one competitor really can’t offer much that another one can’t. Usually, this is the case only for commodities. In the concentratedstrategy, one firm chooses to focus on one of several segments that exist while leaving other segments to competitors. For example, Southwest Airlines focuses on price sensitive consumers who will forego meals and assigned seating for low prices...
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...Market Segmentation of Kwality Walls Cornetto HUL had entered the ice-cream market through acquisitions of approximately 150 crores. It acquired Dollops from Cadbury’s in 1993 while it bought Kwality and Milkfood in 1995. Since Amul has entered into the ice-cream market, Walls has lost a huge market share to Amul. To again gain the lost market share, HUL has modified their market segmentation. On the basis of Density, it has segmented Indian market into Urban and rural area. It has decided to focus only on the urban segment specifically the top 6 metros of India. Over the years, it has expanded to the top 30 cities. The philosophy behind this decision is that the top 30 cities has 70% of total ice-cream consumers in India, i.e. the 30:70 principle. Kwality walls just want to increase the consumption of ice-creams in the markets in which they are present rather than entering into new market. HUL has also segmented the market based on demographics into three categories: Kids, Teenagers and Families. Cornetto as a brand Is targeted at teenagers while Paddle pop is for kids while red tub is for families. This kind of segmentation has allowed to create more consumption opportunity for different segments. For e.g. teenage hangouts for promotion of Cornetto. This segmentation also allows pricing based differentiation for the three segments. Paddle pop is sold at Rs.5 to Rs. 10, Cornetto for youth is priced between Rs. 20 and Rs. 30 while the family pack ice-creams are priced between...
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...would introduce the Waffle Taco to the following census metropolitan areas: Brandon, Manitoba; Richmond, British Columbia; and Toronto, Ontario. This allows for a wide range of the Taco Bell consumer population to be tested to discover whether a full release throughout Taco Bell Canada is wise and profitable. The bases of segmentation I will use for conducting this test will be geographic segmentation to reflect the differences in Canada's geography and demographic segmentation to reflect the differences in Canada's diversity. 2. By choosing the CMA's I chose, I would further be segmenting in the following ways. I would split the geographic segmentation by different kinds of landscapes/areas in Canada. Brandon, Richmond, and Toronto are all in completely different locations in Canada. Richmond...
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...STP template Instructions: What’s it for? To prepare for tutorial 2.When is it due? Bring it along to the tutorial 2.By whom? Do it as a group. If you do not get a chance to sit as a group, do it individually before the tutorial.Is it compulsory? No, the “Memo” was compulsory. However, having this completed will be a great help in preparing for your coursework and the time spent during the tutorial will be much more productive!Tips: fill in as much as you can. When filling up the template always think of the arguments you have to support your decisions (you will need to demonstrate your argumentative and critical skills in the coursework). | Segmentation Identify key segmentation variables and segment the market into three segments.Key segmentation variables (think through as many as possible):‘Umbrella’ variable (e.g, benefits sought, lifestyle, age, income etc.):Your identified three distinct segments (they shouldn’t overlap): * Segment 1: People with chronic back pain. - Segment 2:People over the age of 55 * Segment 3:People who are of mid-level income , they don’t want to perform surgery since expensive and want a substitute with is of same quality but at a more acceptable cost. | Targeting Evaluate market segments and choose the target segment.Market attractiveness criteria (segment size, segment growth, segment profitability etc.):Business strength criteria (resources, skills and competencies etc.):How would you rank the segments based on the...
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...can steal it from me to play Angry Birds), I am greeted with two pop-ups serving irrelevant daily deals, which I instinctively close without reading. The only time I might actually pay attention is when a friend emails or pings me via Facebook on a cool offer (Rally Car Racing lessons? Okay, now we’re talking). Most marketing emails that somehow slip through my spam filter also go unopened and unread, as I search for the email I really want to see: that my fantasy football trade was accepted (Tony Romo really is a horrible fantasy QB). The mail, the inserts, the pop-ups, the emails — they have all become nuisances and background noise. So is marketing dead? I hope not, because I’m basically a marketing guy. But I think classic “segmentation” based marketing is broken. We are all individuals with unique needs. And as much as marketers try, it’s hard to put us into “catch all” segments or clusters. As a former airline marketing VP, I have been part of the problem: so feel free to blame me first. We used to celebrate a 0.25% response rate to inserts in our airline credit card mailings. Really? So 99.75% of the people didn’t care about our offer. A 1% click-through on a keyword ad gets celebrated, too. So why do marketers celebrate irrelevance? Because the math still pens out: you can make money in the short term on a 0.25% response rate or a 1% click through rate. But what’s the long term cost? More important, what’s the lost opportunity? For the past couple of...
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...Cultural environment The cultural environment consists of the "institutions and forces that affect society's basic values, perceptions and behaviours" (Kotler et al 1998, p882). Changes in Australian culture, and the emergence of varied sub-cultures can have a large impact on the instant coffee market in Australia. As Hugh Mackay, chairman of Mackay Research Pty Ltd stated: "Anyone who is serious about communicating with contemporary Australians...needs to understand the most contemporary trends in attitudes and behaviour." (Bradmore et al 1997, p62) Recent trends in Australia that are having a particular affect on the instant coffee market are the redefinition of health and associated anxieties about diet, fitness and stress, and the recent emergence of a young Australian coffee culture. Australians are, more than ever, concerned about their health. There is a wealth of research linking caffeine to many ailments, and thus, this is increasing demand for the 'healthy' alternative - decaffeinated products. There is also the threat the consumers could boycott coffee products all together, and switch to another beverage, such as tea, which is well known for its positive health benefits. In addition, the market for all types of coffee is benefiting from an "era of coffee in Australia...A real coffee culture is growing." (Miller 2000, p3) People are not only drinking more coffee, but becoming coffee connoisseurs. Coffee is no longer just a product, but a means of self-expression...
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...Assignment #1 – Segmentation and Consumer Research This paper examines research on segmentation and consumer behavior. Consumers can be described using geographic, benefits sought, psychographic, and behavioristic dimensions, yet demographic factors continue to be top of mind predictors or explanations of shopping patterns. Consumer segments are often described using demographic characteristics such as age, gender, race, ethnicity, income & education, and many demographic stereotypes exist about what and how consumers buy. Some stereotypes are close to the behavioral reality of today, while others are not. This paper challenges you to examine current research on segmentation and consumer behavior and shopping data from the MRI Reporter Database. To learn about recent research on segmentation and consumer behavior, particularly the demographics of age, gender or race/ethnicity, access the Business Source Premier database available through the Temple University library website and locate at least two relevant academic articles published since 2000. Relevant academic journals include Journal of Consumer Research, Journal of Marketing, Journal of Consumer Behavior, Journal of Retailing, Journal of Consumer Marketing, Journal of Consumer Affairs, and Young Consumers. The paper should be 3-4 pages and should use three headings in bold and underlined: Introduction; Findings From Past Research; and Conclusion. You can choose your specific topic - just pick a demographic to analyze...
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... Data Memo MJB MARKETING INC. MEMO To: Kudler Fine Foods Management Team From: Robin Horton Date: 03/18/2012 Re: The Importance of Demographic/Psychographic Information within the Marketing Strategy Over the next few weeks the marketing executive of MJB Marketing Incorporation will be assisting Kudler Fine Foods in the process of evaluating the opportune times to implement psychographic, demographic, behavioral, and geographic segmentation into their marketing assessments. It is imperative that Kudler Fine Foods realizes the magnitude of demographic and psychographic data and the pertinent information these data’s convey about their current and possible future consumers. MJB Marketing Corporation will devise a positioning strategy for Kudler Fine Foods while contemplating the possible arrays of segmentation to assess the various competitors within the market. During all phases of the project MJB Marketing Incorporation will provide clear concise reasoning’s for the recommendations. Kudler Fine Foods must estimate the demographic characteristics such as age, occupation, gender, income, education, and other like values to properly proceed to expanding their stores. In order to create the best location and store attributes it will be necessary to pinpoint geographic, demographic, psychographic, and behavioral segmentation. These variables must be accounted for to create the ideal marketing mix. Kudler will need to determine the answers to certain questions such as...
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...who is persnickety when it comes to quality of sound (but not necessarily pretentious). The introductory phase was not easy for Bose but it remains relevant in reputation of outstanding sound – mostly personal and home. Admittedly, Bose is under the radar when it comes to the results of its success. Bose segments consumer markets and gears toward consumers interested in purchasing high-end electronics. Privately and internationally, Bose practices geographic segmentation through implementation of research and development (“R&D) among multiple domestic and foreign markets. Consistent marketing efforts, intellectual property (“IP”) and patent acquisitions play key roles in geographic marketability for Bose. Whether ironically or fortunately, Bose shares the hold on consumer purchases internationally but relies on domestic sales. Further, much of Bose sales revenue comes from areas with high net worth. Interestingly, it becomes more focused on buying habits rather than income analysis. This is where demographics become relevant for the target groups of 18-34 and 35-49 age groups. To clarify, Bose knows music and Bose knows sound; Bose products are crystal clear and can provide an escape to the world through surround sound or state-of-the-art headphones. Bose sells products to musicians, trendsetters, wanna-be-musicians, roadies, and those who simply love...
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...Positioning C O M P E T E N C Y O B J E C T I V E S F O R M A S T E R Y 1. Identify the role of market segmentation in developing a marketing strategy. 2. Identify criteria for market segmentation. 3. Identify common types of positioning strategies. 5 Suppose you’ve created a great new offering you hope will become a hot seller. Before you quit your day job to market it, you’ll need to ask yourself, “Who’s going to buy my product?” and “Will there be enough of these people to make it worth my while?” Certain people will be more interested in what you have to offer than others. Not everyone needs homeowners’ insurance, not everyone needs physical therapy services, and not every organization needs to purchase vertical lathes or CT scanners. Among those that do, some will buy a few, and a few will buy many. In other words, in terms of your potential buyers, not all of them are “created equal.” Some customers are more equal than others, however. A number of people might be interested in your product if it’s priced right. Other people might be interested if they simply are aware of the fact that your product exists. Your goal is to figure out who these people and organizations are. To do this you will need to divide them up into different categories. The process of breaking down all consumers into groups of potential buyers with similar characteristics is called market segmentation. The key question you have to ask yourself when segmenting markets is, What groups of buyers are similar...
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...world's largest wave pool, measuring impressive 139,800 square feet (13,000 square meters). Now it is obvious which kind the Sunway Lagoon, this is due to their market segmentation. Market segmentation helps marketers define customer needs and wants more precisely. Sunway Lagoon uses geographic, demographic, psychographic segmentation, benefit segmentation and usage rate to locate their target market. Geographic segmentation is a common strategy when you serve customers in a particular area, or when your broad target audience has different preferences based on where they are located. This marketing approach is common for small businesses that serve a wide demographic customer base in a local or regional territory. Geographic segmentation refers to a region of a country or the world, market size, market density, or climate. This is used for the location of Sunway Lagoon which are strategically located in the Petaling Jaya, Malaysia. Because of attracting people from city, just need to take a 15-minutes drive from Kuala Lumpur. It also nearly located at a centre of Malaysia, so it give easy for all Malaysians to travel to Sunway Lagoon. Beside of Sunway lagoon there is Sunway Shopping Mall and The Sunway Lagoon Resort Hotel. The Sunway Lagoon Resort is a good choice when staying in the area. Demographic segmentation refers to age, gender, income, ethnic background, and family life cycle. This is used to help determine of what type of play ground they should create for children...
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