MBA 6012 Integrated Global Marketing
Value on Integrated Marketing
Jerry Baldwin, Zev Siegl and Gordon Bowker created Starbucks; they met coffee roasting entrepreneur Alfred Peet who inspired the three novices to open a coffee shop to sell roasted coffee at their first location in Pike Place, Seattle. Their goal was to sell high quality coffee beans. This venture has certainly paid off, as Starbucks has become a well-known name brand both locally and internationally. They met Howard Schultz an entrepreneur who suggested the idea of selling coffee drinks in European style cafes. He later went on to purchase Starbucks and expanded the coffee chain.
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With its assortment of comfortable chairs and tables and friendly staff, it serves as a comfortable place between work and home. The fascination of Starbucks coffee is that they have a captured about 13% percent of the market share and they are constantly revising on new strategies to attract more coffee drinkers. Its product pricing is premium, which is due to the company’s commitment to quality products and a high level of customer service. Its advertising and promotion budget is however, minimal.
Its stores, which are spacious so that customers can wander around the store, drinking their coffee and considering the purchase of coffee paraphernalia ranging from coffee to preparation equipment, which is typically designed around a planned mix of organic and manufactured components. Starbuck’s retail strategy was intended primarily to maintain loyalty and repeat business among its target market, which were the upscale coffee drinkers. This encompasses the hiring and training of knowledgeable counter servers, called baristas (Italian for bartenders), to educate customers about Starbucks’ specialty coffee drinks and associated products, and to provide customers with an opportunity to take a break from their busy lives in a relaxing atmosphere.
What is Market Segmentation?
Market Segmentation is a term referring to the aggregation of prospective buyers into groups that have common needs and will respond similarly to a market action. There is a lot of research involved, as some targets are different from one another. The general rule of the criteria used to indentify different segmentation.
Starbucks was accused of being a monopoly in the coffee distribution market. The smaller coffee retailer sued Starbucks for monopolizing the prime real estate in Seattle. This was Starbucks strategy of stamping out the competition in coffee sales. Like all national chains, Starbucks in no different as it maintains a sophisticated system for targeting areas of high market potential. A new Starbucks in the neighborhood can probably be taken as evidence of improvement in the local demographic and economic statistics, of the sort that would also be beneficial to existing business. Starbucks is not then the cause of better business performance but a correlate of a stronger neighborhood, which in fact boosts retail generally.
Starbucks holds the torch for romancing America’s love affair with coffee, bringing romance and fresh flavor back to the brew.” This all started about 15 years ago, Mr. Schultz said". Focusing on age, gender, sex, income, ethnic background, and family life cycle, they provide for their target market. It also stated that they also have to focus on the target markets offspring since these children most likely will be accompanying their parents to a Starbucks store and their parents will need to feed their children. Now Starbucks is starting to put many snacks, kid friendly drinks, desserts...