Starbucks was a young company in the 80’s, starting as a smaller chain where people could buy coffee in a nice comfortable environment. Starbucks located in Seattle there was some spectrum variables of this geographic location. The company deciding to move was a strategic decision. It did have to consider the full spectrum of segmentation variables. Considering the difference in the geographic location and the people in the different locations needs, and wants had to be considered. The first move was to Pike Place, California. Behavior variables was clear and precise. The personal aspect of the company, great service, and atmosphere gave the company an advantage. The first step in the success was geographic like previously stated, the second was demographic segment for example sex, race, origin, and age of the customers. Next, the Psychographic segment as the article suggest the customer tend to be more wealth as well as more educated. This three segments variables were imperative in the Starbuck segmentation. (Starbucks, 1996)
Starbucks strategy was identifying the most imperative segments that offered the best prospects for growth and success. Starbucks customer service was valuable and they worked for a better look in the eyes of their customers. By doing this they seen and did things the other competitors ignored. Starbucks opened more and more stores. The opened 17000 stores all over the world in a 20 year time frame. (Starbucks, 1996) According to the article the experience was first to change. It describes the more the chain grew the more the Starbucks experience changed. The place was no longer unique. It was not the comfortable, friendly, upscale place to hang out any more. They began to fall short of meeting customer expectations.
These changes in the sights of the targeted customers were not meet. (Kotler, 2010) Starbucks main area of concentration is Demographics. Secondly they focus on Geographic and lastly it is psychographics. Which is very different from the first initial locations. I think they will make a comeback, regain profitability and growth. After the initial lose by Starbucks management teams evaluated the corporations and are making strives to regain the company’s initial lure. They are also expanding their product line and drawing new customers. With new developments I do see success in their future.
Kotler, A. (2010). Starbucks: Just Who is Starbucks Customer. In P. Kotler, & G. Armstrong, Principles of Marketing 13th ed. (p. 219). Boston: Pearson. Starbucks. (2006, 01 15). Starbucks. Retrieved from Starbucks History: http://www.starbucks.com/about-us/company-information