Introduction:
In this assignment I will write many things about segmentation. It will include an explanation of what segmentation is and how it works in companies. I will also include some examples to help explain and analyse why segmentation is very important to all businesses including my chosen company. During this assignment I will also explain the relevance of segmentation to my chosen company and how they use it as part of an overall marketing strategy.
Description of segmentation:
The purpose of market segmentation is to divide a large market into smaller parts in which the consumers have similar characteristics and needs for goods and services. Also the consumers could be segmented into more
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chain of coffee company’s, established in 1971. It is the world's largest coffee chain store, whose headquarters is located in Seattle, Washington, USA. Starbucks's retail products include a variety of the top 30 coffee beans in the world, handcrafted espresso coffee and a variety of hot/cold drinks, delicious pastries, fresh food, and a rich variety of coffee mugs and other merchandise.
People may like have afternoon tea or just take a rest in Starbucks. They would like to seat here have a cup of coffee and a piece of cake then do their work, also they may come here to chat with their friends. As much as I know, there always have Wi-Fi in every Starbucks store.
Starbucks uses demographic segmentation (markets by age, gender, income, ethnic background, and family life cycle) as well as geographic segmentation (markets by region of a country or the world, market size, market density, or climate) and psychographic segmentation. (Anon., n.d.)
Explain: of the relevance of segmentation to Starbucks Coffee
According to an article on the Houston Chronicle, Starbucks holds around 33% of the market share for coffee in the U.S. Starbucks has been able to accomplish this by catering to a specific target market. Stated in the article, Starbucks' main target market is men and women between the ages of 25-40, which accounts for almost half (49%) of its total business. Customers within this range tend to have high income and professional careers.
As I said
Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world, with over 16,000 stores in 50 countries (Starbucks Annual Report, 2009, p. 1). Starbucks sells high-quality
According to Horner and Swarbrooke (2005: 39), Segmentation may be defined as the process of dividing a whole market into subgroups or segments for marketing management purposes. Market segmentation is the division of the overall market for a service into various categories with common characteristics. In response to different segments, organisations facilitate the available resources to achieve greater efficiency, in order to satisfy specific needs of customers.
starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One
Starbucks Corporation the leading coffeehouse in the world. It was founded in 1971 by Jerry Baldwin, Zev Siegel, and Gordon Bowker in Seattle, Washington. Howard Schultz was the key person who turned the company a huge success around the globe. Since the beginning Starbucks has been facing many tough challenges and yet it is still remains as the best coffee House in the world. The mission of Starbucks is to inspire and nurture the human spirit- one person, one cup, and one neighborhood at a time. Their main competitors are include Dunkin Donuts, Biggby Coffee, Caribou Coffee, McDonald 's, Panera Bread, and Einstein Bagels, ,Secret Recipe, Old Town White Coffee and Coffee Bean. The political stability shows what
Starbucks customers are diverse, well educated, young business people looking for a quick and easy way to grab coffee on their way to work. Starbucks values a strong relationship with their customers so they are
As every customer has unique needs and expectations towards certain products, the ultimate goal of market segmentation is to organize customers into groups which allows targeting of customers with similar needs of and response to the products. The key is to minimize differentiation within each segment
Market segmentation is a marketing concept that divides a large heterogeneous market into smaller homogeneous subsets of consumers with similar needs, wants and characteristics. Researchers might be able to predict customer 's behavior by studying if there are any relations between customer 's personality and the product selection process. A key success for any business is to communicate with its customers better than competitors by understanding who its customers are and what they want. The more specific costumers are segmented, the easier a business will understand its customers and build successful relationship with them because customers usually choose a product that expresses their personality. The market can be segmented by different types of segmentations such as demographic, geographic and psychographic. Marks & Spencer uses demographic segmentation to target customers above the age of 30 with high income and executive occupation. It also segments the market through value, as many products in M&S’s clothing range have a premium-priced segment, a mid-priced segment and a lower price segment.
Starbucks is a successful premium coffee retailer. Its target market sets as well-educated, white- color patrons between the ages of 25 and 44. There are three components of the brand, live coffee, service, and atmosphere. However, its brand image is losing while they focus on retail expansion.
Market segmentation it may be defined as a process of dividing potential customers into certain subsets or segments having similar levels of needs or characteristics, and providing them with the products they need to satisfy them. Marketing segmentation has some benefits. In the past the mass marketing was used by the companies to achieve the economies of scale by use the same marketing channel star for all consumers. The segmentation is so important because the differentiation. In the markets helps products complete also segmentation enable the business to produce differentiate offerings on basis of features as price, packaging and styling. Segmentation leads Marks & Spencer to the success and the growth. By segmentation Marks & Spencer become
Starbucks provide a large in store seating with free wi fi and a take-out service which only a few retail shops offer. The main target customers for Starbucks are office workers, with enough income, whom are able to afford the high prices of their products (Gaudio, 2003). The company has worked hard to establish itself as the brand leader with its branding as the most frequently drank coffee and noticeable brand logo. Introduction of promotions like the Starbucks Card, allows a more convenient way for a person to pay for your drinks and earn rewards for your purchase (Starbucks Coffee Company, 2011). Furthermore, in‐store promotions accompanied by new products and amenities like free internet use are all strategies that Starbucks use to maintain their position in the market (Vasudha, 2011).
Segmentation is a tool; purpose is to choose target market.Segmentation comes prior to target market Many different tasks are involved other than segmentation when choosing target market Look at each segment on its own as an individual marketing opportunity. Potential worth of each segment To examine whether the whole market should be chosen or only few segments To find segments which are less satisfied in market from competitor brand.
Market segmentation is an approach used by a company to select their target market and provide data for a marketing plan. “Market segmentation consist of a two-step process; naming broad product markets and segmenting these broad products-markets in order to select target markets and develop suitable marketing mixes” (Perreault, Cannon, & McCarthy, 2014, p.97). There are 4 categories pertaining to market segmentation; behavioral, geographic, demographic, and behavioral.
Segmentation is essentially the identification of subsets of buyers within a market who share similar needs and who demonstrate similar buyer behavior. Segmentation aims to match groups of purchasers with the same set of needs and buyer behavior. Such a group is known as a 'segment '.
Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations. Its important as it allow a business to precisely reach a consumer with specific needs and wants. There are several thing of market segmentation such as demographic segmentation, geographic segmentation, psychographic segmentation.
Segmentation is a process of dividing the market into small portions where each portion shares the similar kinds of needs, characteristics and buying behavior.