Starbucks: Just Who Is the Starbucks Customer? Synopsis Starbucks is truly a unique company and brand. How many companies have gone from just a few outlets to 15,000 outlets in a very short period of time, only then to stop opening outlets and start closing them? This case chronicles the rapid rise of Starbucks and the abrupt halt to its torrid growth. Students will be challenged by the numerous factors that play a role in this dynamic. Search chapter 6 in your text and the internet for additional information about Starbucks. Teaching Objectives The teaching objectives for this case are to: Apply the concepts of market segmentation, targeting, and positioning. Consider the ways to segment the consumer market for coffee. Develop positioning strategies. To provide students the opportunity to consider the effectiveness of a company’s change in target marketing strategy. Discussion Questions 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 principles of market targeting. 3. Is Starbucks’ “value” positioning targeting a new type of customer or simply appealing to existing customer types? 4. Will Starbucks’ “value” efforts work? What alternatives did Starbucks have? 5. Is it possible for Starbucks to eventually succeed with its goal of 40,000 stores?
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