Starbucks targeted the customer who fell in love with the Starbucks Experience who was: -Wealthier, better educated, and more professional than the average American. Once a company grows to the size of Starbucks, with millions of daily customers, and $1.6B in credit stored on loyalty cards, they have got to graduate to a more sophisticated method to target their marketing. At Starbucks, the demographic segmentation's main group is between 25 and 40 years of age with high . Geodemographic segmentation is similar to demographic segmentation but combines geographic information, psychographic information, and consumer behavior to better determine -More likely to be female than male. The mission statement of Starbucks Company is to “inspire and nurture the human spirit- one person, one cup, and one neighborhood at a time”. 2.1 SEGMENTATION OF CONSUMER MARKET OF STARBUCKS COFFEE. (Huff Post, 2013) However, later on the company decided to modify its segmentation to also target students. Market segmentation is the process of dividing a group of people into categories based on specific, shared traits. All Starbucks cups features the logo, as does every storefront, as do almost all Starbucks products. 2.1.1 GEOGRAPHICAL SEGMENTATION - 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. Dynamite Advertising Agency is executing “Marketing and Branding of Products Project” on behalf of Starbuck Company.This project is being executed to address an expected growth in sales of Starbucks Company among the traditional market and also in the perspective and younger market. Starbucks can effectively market to both groups separately (Cachola, 2012). It has followed the Segmentation, Targeting and Positioning process (STP). -Most likely between the ages of 24 and 44. Starbucks is an American coffeehouse chain operating in 6 continents and 75 countries and territories. Starbucks started the business by selling roasted coffee beans, and various accessories for brewing and roasting the coffee. The Starbucks company also target teenagers from 18 to 24, The customer segmentation will be determined using unsupervised machine learning technique with K-means algorithm. Customer Segmentation - Starbucks Challenge. The Segmentation Variables used by Starbucks. Starbucks may also segment the market in many groups but especially divides the market into geographic, and psychographic segmentation. Starbucks Corporation Report contains a full analysis of Starbucks segmentation, targeting and positioning and Starbucks marketing strategy in general. Based on the segmentation variables, how is Starbucks now segmenting and targeting the coffee market? Starbucks Behavioral Segmentation. Behavioural Segmentation 6 9.Market targeting 7 10.Market Segmentation Limitations 8 11. By dividing the potential customers into age groups, Costa Coffee can adjust the flavour and choices of coffee accordingly. City Café, on the other hand, emphasizes convenience in time and location, as well as quality coffee for lower prices.” The Concept of Market Segmentation 5 4. Segmentation To make the most of our outreach, we need a way to take this complexity, and automatically segment customers into groups that respond best to a particular marketing campaign. The Process of Market Segmentation 5 5. Starbucks offers: Advanced customer segmentation with Python A small startup can afford to target users based on broad-stroke rules and rough demographics. 3. The selection of the target market will be comprised of segmentation data collected, based on demographic, geographic, psychographic, and … years by opening 150 new Starbucks retail locations within Canada. They use geographic, behavioral, lifestyle/psychotropic, and demographic variables to organize markets into segments (Kotler & Armstrong, 2014). Starbucks Market Segmentation and Positioning Starbucks Market Segmentation and Positioning Introduction Starbucks was opened in 1971 in Seattle. Starbucks Competitive Analysis. Starbucks uses demographic segmentation markets by: age, gender, income, ethnic background, and family life cycle; as well as geographic segmentation markets by: region of a country or the world, market size, market density, or climate; and psychographic segmentation, which can link with demographics. Starbucks Customers Segmentation. Demographic Segmentation 5 6. Segmentation In marketing the new Starbucks rewards card, areas of the marketing segmentation must be identified and evaluated for maximum exposure. On the subject of market segmentation between Starbucks and City Café, Wu Pi-Chu (interviewed in June 14th, 2012) indicated, “Starbucks provides an environment for high quality, high experience, and high priced coffee. Starbucks had a goal and their initial segment was a Demographic segmentation. Starbucks is mainly focusing on the strategy of new products, stronger customers’ connection as third place and expanding their store locations in US and abroad. 5.0 Consumer Buyer Behaviour Consumer decide on which brand they want to choose based on either the functional benefits, … MARKET SEGMENTATION OF A LEADING COMPANY - STARBUCKS Starbucks was opened in 1971 in Seattle. ... Starbucks sends out an offer to users of the mobile app. Over the years the name has proven to speak for itself. In the United States Starbucks has more 13000 locations. Academia.edu is a platform for academics to share research papers. 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