1.

Definition of the Market & Customers

a) Market:

Starbucks has around 33% of the market share for coffee in the U.S.

Although most of the consumers are in cities or upscale suburbs, they sell

almost the same amount of coffee as fast food and convenience stores.

When Starbucks was launched, the target market was high-income class. But

during 1990s, Starbucks recognized that the growth of Starbucks depended

on the incomes of the middle and lower income groups, as both sectors were

more motivated and profitable. Starbucks also focuses on spending habits

and shares coffee with buyers. At the end of the 20th century, there were

many changes in the market that helped Starbucks succeed. The most

important change in nearly two decades is the change in global economic

policies. Starbucks is targeting young professionals 18 to 24 years old

because they are not yet loyal to the coffee industry. Starbucks' strategy

includes positioning the store in some of the most discerning of offices,

underground main entrances and urban areas. In addition to being sold

through company-run retail stores and franchised retail businesses, Starbucks

sells coffee and tea products through other means with the goal of becoming

a leading retailer and coffee brand in its target market with the goal of

achieving that goal Continue to aggressively expand the retail locations

where the company operates.

b) Customers:
At Starbucks, the main population distribution is between 25 and 40 years of

age. The second target group is 18 to 24 years of age, belonging to richer

families. In general, the customer belongs to Generation Y, born between

1977 and 2000; this is most of the profits lie Follow Fromm claim.

Adults: The main target for Starbucks is men and women between the ages

of 25 to 40, accounting for nearly half (49%) of all business. Starbucks has

captured this consumer age with sleek, sleek designs that are consistent in

advertising and decorating, and are striving to keep their products as a status

symbol. Customers tend to be urban residents with relatively high incomes,

occupational specialties and social benefits. The target audience grows at 35

per year.

Young adults: Young people aged 18 to 24 make up 40% of Starbucks sales.

Starbucks positioned itself as where college students can go out, study, write

up term papers and meet people. Through the introduction of technology,

Starbucks directly attracts consumers, focuses on social networks and

actively cultivates a "cool" image. Young adults grow 4.6% annually.

Kids and Teens: Children and adolescents are also an important part of

Starbucks' target audience. Among customers aged 13 to 17, Starbucks

accounts for just 2% of sales, but most children's items are purchased by

parents. Whether it's the steamed milk called "babyccinos" by a Starbucks

barista or the sugary, caffeinated, creamy coffee drinks popular among

teenagers, children and teens, Starbucks is an important part of the business.

The children go there with their parents. Mother and children left with a cup.

In the meantime, teens use Starbucks as a place to meet or learn with their

friends. Starbucks may not cater directly to children (and run the risk of

criticism of the high caloric and caffeine content of their drinks), but it does

make their products child-friendly, such as offering special child sizes.

In general, only the following points:

 49% of the revenue that Starbucks receives every year comes from

customers in the 25-40 age demographic.

 This core age demographic grows economically at an average of 3%

annually.

 Young adults in the 18-24 age demographic make up another 40% of the

revenues Starbucks receives every year.

 Young adults grow at 4.6% economically each year.

 Teenagers under the age of 18 make up just 2% of the revenues

Starbucks receives annually.

 Specialty coffee drinks make up 75% of the sales that Starbucks sees on

any given day.

 Starbucks' Sales

Adults 25-40 Young adults 18-24 Kids 13-17 Others

Figure 1Starbucks' Sales