Starbucks Target Market Analysis Essay
Target market:
Adults
Starbucks’ target market is men and women who are aged 25 to 40 years old. This group people contribute 49 percent to Starbucks profit. Among these ages, most customers are urbanites with relatively high income. Most of them have professional careers and more focus on social welfare. Also, these target customers are growing at 3 percent per year. Young Adults
Young adults who are between 18 to 24 years old account for total 40 percent of Starbucks’ sales. Starbucks’ locations are good for college student to hang out, study and meet friends.
Kids and Teens
Starbucks another target market are kids and teens whose age are between 13 and 17 years old, and accounts for just 2 percent of Starbucks’ sales. There are many
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The hybrid distribution channels enable the company to maximize its market share. However, while doing this Starbucks need to be very carefully with this way because of the potential channel conflict.
Strengths
Famous Brand: Starbucks has developed their name, logo, culture, symbols successfully. Although Starbucks ' revenue was frustrated by the financial crisis hardly, the company recovered very fast, posting a 12.7% increase in revenue in last year (2012). The Starbucks is famous for its having a large number of high loyal customers and luxury products.
Strong financial picture: Earning per share, net revenues, store sales, operating income were all in a comparable high level.
Extension: Starbucks is planning to open 1,200 new stores in year 2013, most of them in the U.S. and China.
Market advantage: Starbucks is the world 's largest coffee store, with almost 20,000 stores in 60 countries over the world, 12,937 of which are located in the U.S.A.
Weaknesses
Starbucks is having a difficulty in entering Europe 's "cafe culture" because of different regional taste. Higher labor cost is another aspect decreasing the margin
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