BUS FPX 4024 Assessment 5 Consumer Behavior Presentation

Student Name

Capella University

BUS-FPX4024 Customer Behavior

Prof. Name

Date

AGENDA

History of Starbucks
Current Target Market
New Market
AIO Analysis
Adaptation to Meet Consumer Needs
New Consumer Demographics and Market Segment
Pricing Strategy
Starbucks Commitment and Service
Starbucks Mission and Vision

HISTORY OF STARBUCKS

Starbucks commenced its journey in 1971 with the inauguration of its first store in Seattle, Washington, by Jerry Baldwin, Zev Siegel, and Gordon Bowker. The reins were later passed on to Howard Schultz in 1987. Presently, Starbucks boasts over 30 thousand stores worldwide, spanning across 76 countries, thereby solidifying its position as a leader in the gourmet coffee industry.

CURRENT TARGET MARKET

The current target market for Starbucks primarily comprises individuals aged between 25 and 44, who prioritize status as a significant criterion. They gravitate towards neighborhood stores adorned with contemporary design, emphasizing the importance of brand name. Additionally, this demographic, along with the prospective new market, consists of environmentally conscious adults with upscale tastes and a high-income bracket, who seek convenience alongside quality.

NEED FOR A NEW MARKET

The necessity for a new market arises from the demand for convenience and accessibility among consumers leading busy lifestyles. These individuals, encompassing various professions, struggle to allocate time for procuring gourmet coffee due to long work hours and demanding schedules. A comprehensive Activities, Interests, and Opinions (AIO) analysis, especially in densely populated urban areas, will provide insights into consumer preferences.

AIO ANALYSIS

Through the AIO analysis, the following preferences have been identified:

Convenience and easy access are paramount.
Delivery services are desired to accommodate busy schedules, with a willingness to bear additional costs.
High-income individuals constitute the target demographic, exhibiting strong brand awareness and a penchant for quality products.

ADAPTATION TO MEET THE NEEDS

Starbucks endeavors to tailor its offerings to meet the demands of the new market segment, comprised of busy consumers unable to access neighborhood store locations. Solutions will be explored within budget constraints, with a focus on recognizing consumer needs and mitigating additional expenses associated with service expansion, such as delivery logistics and operational overheads.

NEW CONSUMER DEMOGRAPHICS AND MARKET SEGMENT

The new consumer demographic primarily consists of individuals aged 25-44, engaged in professions necessitating long work hours. These individuals, including coworkers, managers, and professionals, prioritize quality coffee but face challenges accessing traditional store locations due to their busy schedules.

NEW MARKET SEGMENT

The new market segment encompasses bustling urban centers with diverse industries, catering to employed individuals with hectic schedules. These consumers rely on coworkers to procure beverages conveniently, prioritizing brand awareness and quality.

PRICING STRATEGY

Starbucks aims to promote its delivery services through various strategies:

Internet marketing via webpages and social media.
Reward programs incentivizing delivery orders.
Promotional offers such as coupons and free coffee for first-time orders.
Local business engagement to promote delivery services.

BUS FPX 4024 Assessment 5 Consumer Behavior Presentation

STARBUCKS COMMITMENT

It remains committed to delivering quality beverages, fostering consumer loyalty, and brand awareness. Continual product innovation, environmental consciousness, and consumer-centric initiatives underpin its commitment to meeting the evolving needs of its target market.

STARBUCKS MISSION AND VISION

Starbucks’ mission is to inspire and nurture the human spirit, one cup, one person, and one neighborhood at a time. This ethos guides its efforts in providing personalized customer experiences, caring for consumer needs, and promoting a financially sustainable business model. Concurrently, Starbucks envisions establishing itself as the foremost purveyor of premium coffee globally, adhering to uncompromising principles while fostering sustainable growth.

References

Perreault, W., Jr., Cannon, J., & McCarthy, J. (2015). Essentials of marketing: A marketing strategy planning approach (14th ed.). New York, NY: McGraw-Hill Education.

Starbucks. (n.d.). Retrieved from https://stories.starbucks.com/press/fact-sheets/

Starbucks Coffee’s Mission Statement & Vision Statement (An Analysis). (2019, February 16). Retrieved from http://panmore.com/starbucks-coffee-vision-statement-mission-statement

What Are The Different Target Audiences For Starbucks? (2018, August 9). Retrieved from https://techfee.com/different-target-audiences-for-starbucks/

BUS FPX 4024 Assessment 5 Consumer Behavior Presentation