Type of Business
Starbucks is no doubt a brand name in the United States. The Company operates in the coffee production and processing industry. In fact, the Company is ranked the largest coffeehouse globally, operating more than 20, 800 stores in about 60 countries. The stores serve hot and cold beverages, micro-ground instant coffee, whole-bean coffee, snacks, and pastries. Besides, most stores also supply pre-packaged food products, as well as sandwiches (Pahl, 9).
Target Market and geography
The company targets mainly individuals aged between 25 and 40. It is estimated that this target market forms a larger percentage, about 40%, of the total market of the company. Furthermore, it is argued that this target market increases at about 3% every year. A point to note is most of this target market comprise of office workers, earning middle to high incomes. In addition, most of the people forming part of this target market dwell in upscale suburban areas or cities, which explain why almost of the stores of the company, are located within these areas. The Company also targets young adults, 18 to 24 years. This is the second largest target audience. The company positions itself as a place where the young adults can hang out. This target audience increases at a rate of about 4% per annum (O’Farrell).
Positioning strategy
The customers perceive the company as more than just a comfy coffee house. Instead of limiting itself to coffee, the company has ventured into all coffee related products. Moreover, the company is associated with high quality products and services, which go with a restful and peaceful atmosphere. Therefore, it should be perceived as a place where individuals go to take a break from the day-to-day work (Boychenko).
Differentiation from Competitors
The company differentiates itself from its competitors in various ways. For instance, it is dedicated to the production of high quality products and offering top quality services at a relatively lower price, which has made to stand out in the market. Besides, the company offers a relaxing atmosphere at all its locations, something that is not observed in most of its competitors (Boychenko).
Works Cited
Boychenko Maria. It’s not just coffee, it’s Starbucks, 2014. Retrieved from http://thecoffeeteam.blogspot.com/2012/02/starbucks-is-my-neighbor_7686.html
O’Farrell Renee. Who is Starbucks’ target audience? 2014. Retrieved from http://smallbusiness.chron.com/starbucks-target-audience-10553.html
Pahl, Newton. The idea behind the Starbucks experience: The main elements of Starbucks' strategic diamond. Munchen: GRIN Verlag, 2008
