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Case Study 3

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Starbucks Customer Appeal

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rs e Ishan Mehra
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International American University
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Prof. Mara Murphy

03/22/20
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 Introduction

Initially founded in 1971, Starbucks has more than 10,653 licensed shops in Seattle's Pike Place

Market with almost 50 percent of the overall retail stores. Introducing coffee, bottled tea, a

catering service and branded goods. Starbucks Corporation As of 2010, their biggest concern

was that they had just 3,600 regional outlets. The International and Franchised Stores reported

65% of its gross profit margin. Starbucks will concentrate mainly on product creativity,

employee recruitment and technology because of the saturations on the US markets.

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Starbucks’ Market Segment

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According to Starbuck's Website, the largest customer segment are men and women from 25 to

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40 years of age who make up 49% of their overall sector, urbanizing people with higher incomes
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and working careers. Because of their convenient position and their respected brand this
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customer segment is mainly drawn to Starbucks.

Starbucks, however, is now targeting young adults between the ages of 18 and 24, who

account for 40% of Starbucks revenue. This has placed its students as a place to research, hang
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and meet people, and this appeals favorably to the customers through the implementation of

innovations that concentrate on social networking and actively cultivate a cool image.
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Consumer Decision Process

Stimulus is the key place for most people at the process of Starbucks, due to its overall comfort
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and venue.

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 Problem perception is the stage at which consumers see the need for coffee and know it for no

exact cause.

The search for information is when consumers want to either satisfy this requirement at home

and at work or do a coffee run at Starbucks to have this coffee.

Evaluation of alternatives is a step by which customers compare choices on other locations by

beginning to make coffee at home or by subtracting coffee at work and drawing on Starbucks'

consistency and variety of tastes while also acquiring experience.

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Their purchases are due to the convenience of Starbucks' locations, hours and the ability to use

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their mobile app for ordering, purchasing and purchasing while allowing you to customize your

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Retail Information System
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In order to view and use this information for special offers, such as declining prices during good

hours, which is during low hours of revenues and when seasonal goods are available, Starbucks
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must be able to maintain its retail information system, such as the buying history, lifestyle data
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and population status. Demographics can also help in the expansion effort to find the places
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lacking in the presence of Starbucks, such as the middle west, since the areas are limited.
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Brand Risk
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In my personal view, it will only increase the brand image of Starbucks. Most of the people go to

Starbucks regularly, as they are not offered at home or at work. Mostly because of their comfort

and their quality, they get to know what Starbucks has to offer. On the other hand, I say that

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 Starbucks is at the greatest risk in its target market because of the weak economy. Starbuck's

price range cannot be traded easily in the course of a challenging economic development, which

could lead to an increase in the prices for beverages on its international market.

Summary & Conclusion

Starbucks still focuses on marketing strategies and traditional promotional activities. Starbucks is

also expanding its technological innovation to keep up with the evolving target market and to

grow by applying a digital strategy that offers comfort and better customer experience with its

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mobile application and, in the long run, will also be beneficial through drive and transport.

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Finally, Starbucks also makes use of its innovative employee training as a good basis for

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improving the customer's experience through customer recognition and better measures.
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 References

1. Berman, B., & Evans, J.R., (2013). Retails Management: A Strategic Approach. 12th

Edition. Pearson Prentice Hall

2. Starbucks - The Best Coffee and Espresso Drinks. Retrieved from https://www.starbucks.com

Extension Granted 04/06

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