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Who are the target markets for starbucks? How do they differ from those of other coffee shops?
Starbucks primarily targets coffee drinkers. These segments comprise of adults, young adults and Kids and Teens. Starbucks offers its customers a total brand experience which stretches beyond the consumption of the bevergae. The experience includes excellent customer service, gold card loyalty program, specialty coffee drinks, unique drink names, its dedication towards social responsibility, elegant looking coffee shops.
Other coffee shops such as Tim Hortons, Timothys World Coffee, and Second Cup do not offer extended brand experience as Starbucks. They mostly focus on offering lower priced products and extensive distribution. Tim Hortons does
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Timothy’s World Coffee (3) is positioned as milder coffer and a less relaxed atmosphere than Starbucks but more relaxed as compared to Second Cup
Tim Hortons (4) is positioned as offering the mildest coffee and a rushed atmosphere Does the proliferation of Starbucks’ brand extension dilute the core concept and negatively affect the company’s positioning and competitive advantage?
With creating new products such as Frappuccino, ice creams, tazo tea and bottled drinks Starbucks increased its brand awareness and recognition. I think if Starbucks is very selective in introducing new products, maintains the quality of the products and does not divulge away from its mission statement then brand proliferation will not negatively affect the company’s positioning and competitive advantage.
For example introductions of ice creams Starbucks now directly caters to the kids consumer segment which earlier was as indirect target market. Kids having to choose one of their preferred items allows their parents to spend more time in the store and increases the probability of
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