We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Market Segmentation Essay Sample

  • Pages: 2
  • Word count: 505
  • Rewriting Possibility: 99% (excellent)
  • Category: marketing

Get Full Essay

Get access to this section to get all help you need with your essay and educational issues.

Get Access

Introduction of TOPIC

All coffee lovers were potential market for Starbucks. However, Starbucks segmented market based on coffee connoisseurs who are also interested in experience and environment around coffee consumption. Target Market Selection

Starbucks’ targeted market was the coffee enthusiasts who would love to have a ‘Third Place’ to hangout and relax either in group or solitary. Especially affluent, well educated, white collar patrons (skewed female) aged between 24 and 44. Product and Service Positioning

Elite experience of coffee consumption with convenience and personal touch. 4Ps

Product & Service

Starbucks management envisioned a simple beverages business as ‘Experience’. Hence their product concept was much more widened than mere coffee vending. Starbucks has adopted the ‘Live Coffee’ mantra which is to build business around the coffee consumption experience. Hence the product and services offered by Starbucks were more focused around offering elite experience. Continuous product innovation was most significant factor in Starbuck’s sales growth. New product introduction through rigorous R&D, business validation, and acceptance from partners helped Starbucks to effectively manage the wide product portfolio.

Starbucks believes in creating strong customer patronage by offering personalized

Sorry, but full essay samples are available only for registered users

Choose a Membership Plan
service and achieving higher customer satisfaction levels. Starbucks extended the service offerings by introducing some key programs such as ‘Stored-Value Card’. Such innovative service offerings led to increased visits and reduced transaction time (which is one of the major customer satisfaction parameter). Another add-on service offered by Starbucks was the wireless internet service.

Place / Channel

Starting with one coffee shop at Seattle, Starbucks has expanded over 5000 outlets across the world. Selection of point of sale was done very methodically by matching the demographics of area with profile of typical Starbucks drinker, amount of coffee consumption in the area, competitive analysis and real estate options. Starbucks deployed three tier channel of distribution. Firstly company operated outlets where the store was managed by Starbucks. Secondly non-company operated retail channels, such as hotels and airlines, contributing to 15% of total revenue. Thirdly, 18% of the revenue was contributed by domestic retail store licenses in places where Starbucks did not have retail space. Some part of revenue was contributed by miscellaneous source such as joint ventures, grocery store.


‘Word of Mouth’ publicity and ‘point of sale materials and local store marketing’ has been the main promotion strategy for Starbucks throughout these years. The firm has spent minimal amount on the advertising. The fast paced expansion from 140 stores in 1992 to over 5000 stores by 2002, created a huge brand recognition and brand awareness in the market.


Starbucks has been maintaining stable prices in spite of continuous increase in number of offerings. Their typical price range of common beverages was approximately from $1 to $4. Whereas high end offerings were priced between $5 and $12.

We can write a custom essay on

Market Segmentation Essay Sample ...
According to Your Specific Requirements.

Order an essay

You May Also Find These Documents Helpful

Cocoa delights marketing plan

Marketing objectives should be presented to the CEO in written format, and respond to each of the following statements: 1. Compatibility: How is the objective compatible with the organisation’s strategic direction and purpose? To achieve this, we have 5 priorities: Building a customer and store-led culture and team Generating sustainable sales momentum in Food Evolving our Drinks business to provide even more value and convenience to customers Empowering our portfolio businesses to pursue strategies to deliver shareholder value Becoming a lean retailer through end-to-end process and systems excellence It all starts with building a great retail team that listens to customers, team members and suppliers. Through our Voice of the Customer programme across our brands, our store teams and Support Office team receive daily feedback from our customers. This means our team can focus every day on continuing to improve our offer and shopping experience for our customers. Our Australian Food...

Classification of Relationship Marketing

Marketing discipline has attracted considerable attention from academics as a result there are numerous definitions of marketing in the literature. Different authors have different views of marketing. For instance Kotler and Armstrong (2010) define marketing as the social process through which individuals as well as organisations acquire their needs and wants by creating and exchanging values with others while American Marketing Association (2013) defines marketing as the activity, set of institutions, and processes that creates, communicates, delivers and exchanges offers that are valuable for clients, customers, partners and society at large. The chartered institute of marketing (2012) defines marketing as the process responsible for identification, anticipation and satisfaction of customer requirements in a profitable manner. The definition of marketing by American Marketing Association (1985) stated that marketing is the process of planning and executing the conception, pricing, promotion and distribution of goods, services and ideas in order to create exchange...

Target marketing strategy

What is market fragmentation, and what are its consequences for marketers?Market fragmentation refers to the notion that a market comprises of diverse and different segments. These segments have their own particular requirements, necessities, backgrounds, and a different response to marketing messages. Different mobile phone applications, channels, magazines based on customer needs are some examples of market fragmentation. The emergence of such segments increases competition and prompts expanded rivalry within the organizations. Moreover, market fragmentation decreases brand loyalty among the customers and also demands the new marketing techniques by the marketers as it reduces the effectiveness of previous mass advertising techniques. Market fragments, if targeted properly, can lead to the progress and prosperity of even small businesses. What is a target marketing strategy? Target marketing strategy is a process of identifying and dividing the aggregate market into various fragments on the premise of client qualities and preferences, choosing at least one...

Popular Essays


Emma Taylor


Hi there!
Would you like to get such a paper?
How about getting a customized one?