Who Is Starbucks' Target Audience?
(Source: [Link]
by Renee O'Farrell
Starbucks holds around 33 percent of the market share for coffee in the U.S. It sells
almost as much coffee as do fast food and convenience stores combined, even
though it the bulk of its consumers are in cities or upscale suburban areas. Starbucks
has been able to gain such a large share of the market by catering specifically to a
well-defined target audience.
Adults
Starbucks’ primary target market is men and women aged 25 to 40. They account for
almost half (49 percent) of its total business. Starbucks’ appeal to this consumer age
group through hip, contemporary design that is consistent in its advertising and
decor and working to keep its products current as status symbols. Customers tend to
be urbanites with relatively high income, professional careers, and a focus on social
welfare. This target audience grows at a rate of 3 percent annually.
Young Adults
Young adults, aged 18 to 24, total 40 percent of Starbucks’ sales. Starbucks positions
itself as a place college student can hang out, study, write term papers and meet
people. Starbucks appeals to this consumer directly through introducing technology
as soon as it comes available, focusing on social networking and actively cultivating a
“cool” image. The young adult audience grows 4.6 percent each year.
Kids and Teens
Kids and teens are also a large part of Starbucks’ target audience. Together,
customers age 13 to 17 account for just 2 percent of Starbucks’ sales, but most
items for kids are purchased by the parents. Whether the focus is on the steamed
milk that Starbucks’ baristas refer to as “babyccinos” or the sugary, caffeinated,
whipped cream topped coffee drinks that are so popular with teenagers, kids and
teens form a large part of Starbucks business. Kids go there with their parents; both
mother and child leave with cup in hand. Teens meanwhile use Starbucks as a place
to hang out with friends or study. Starbucks may not cater directly to kids (and risk
criticism about the high calorie and caffeine content of some of its drinks) but it does
make its products kid-friendly, offering special child sizes for instance.
Complimentary Products
Specialty coffee drinks account for around 75 percent of Starbucks’ sales, but an
increasing amount of its business is centred on selling whole bean coffees and
merchandise. Starbucks has made its coffees available for direct order online, in
supermarkets and offered select food service outlets the chance to carry Starbucks’
family of coffee, including Starbucks brand, Seattle’s Best and Starbucks VIA. These
products give consumers a chance to have the “Starbucks’ experience” at home, and
it is an area that Starbucks is pushing.
Questions:
After reading the case study try to determine the potential customers of the
company!
Which types of characteristics of the customers can be used by the company?
Try to determine minimum 3 different customers' group showing their
personal characteristics!
Could you choose "the best"?
Are there any very special desires of these groups?
