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Starbucks’ Target Market

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Starbucks’ Target Market

Abstract/Synopsis Perhaps the most important task for marketing is identifying the consumer base. This is done through market segmentation or STP analysis. Being people oriented is essential because developing long time relationships is what drives successful businesses. Understanding who it is that a company is trying to reach is essential as not everyone is interested in every product or service (Grewal, p.245). While there are many ways to establish a segmenting strategy, as outlined by Grewal and Levy, depending on the company’s unique product line or service, there may be a variety of viable strategies to consider. Starbucks has been successful in part because of their ability to identify who their majority of consumers is, with relation to demographic and psychograpic segmentation, and worked to target those types of individuals in an effort to establish long term relationships.
Primary Target Market To identify Starbucks’ target audience for their brand-name, high quality coffee roast, one may look at the demographic distribution of Starbucks consumption. One important demographic-segmentation characterizing within a company’s consumer base is customer income. When a company produces a product, they must market the product price in accordance with their target audience (Grewal, p250). Porsche for example would not market their automobiles on billboards in low-income neighborhoods, because their target audience has to be able to afford the product. Acting on this principle, Starbucks has focused its efforts on advertising and opening stores in areas of higher income. This is evident when looking at the Starbucks store chain’s national geographic distribution. There are more Starbucks stores in areas of high income, especially cities where living expenses are high. The trend that emerges is that Starbucks’ customers “lean...

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