The company sells itself as a business that is highly involved in the activities of the community from where it operates (Thompson, 5). Kevin Johnson is the current CEO of Starbucks. But a new wave of restrictions in the U.S. could slow Starbucks' recovery in its home market. Starbucks is one of the best-known coffee retail giants in the United States. Kathleen Lee. The purchasing behavior of Starbucks target customers is such that most of them want quality and convenience at an affordable price (Starbucks, n.p). Save my name, email, and website in this browser for the next time I comment. Starbucks enters Kuwait. Break-time' It's coffee time! + 1 (817) 953 0426, Order your paper today and save 30% with the discount code KIWI. In total, the company has over 10,000 coffee shops (Welsh et al., 2).Â The company majorly serves the consumer market. Starbucksâ target market is composed of high-income, suburban, and tech-savvy people with a busy lifestyle. The 250 stores in Arkansas, Texas, and Oklahoma that showcased these sandwiches had to remove them. The most important change of the last twenty, thirty years is the changes of economic policies over the world. During routine testing, it was revealed that the facility that manufactured the breakfast sandwiches had the presence of Listeria Monocytogenes on the contact surface. Initially, the target market of Starbucks comprised of people, who were affluent, educated and had white collar jobs (Welsh et al., 3). Last updated: Oct 10, 2020 Company: Starbucks CEO : Kevin Johnson Year founded : 1971 Headquarter : Seattle, USA Number of Employees (Sept 2019): 346,000 Type: Public Ticker Symbol: SBUX Market Cap (Oct 2020): $ 105.22 Billion Annual Revenue (Sept 2019) : $26.51 Billion Profit (Net income) (Sept 2019): $3.60 Billion Products & Services: Coffee | Handcrafted Beverages | â¦ It opened shop in Seattle, Washington, in 1971. They later expanded to other areas especially on the west coast. We respect your privacy. Deliveroo Business Model | How Does Deliveroo Make Money? There are 87,000 possible drink combinations at Starbucks. Needham boosted Docusign Inc (NASDAQ: DOCU ) price target from $240 to $275. Based on some research reports done in 2017, Starbucks caters to middle and upper-class men and women who have the financial capacity for Starbucksâ premium beverages and the offerings regularly. Insider Retail: Target employees speak out about its shoplifting policy, Starbucks plans to raise its minimum wage, and DoorDash goes public Shoshy Ciment Dec 11, 2020, 23:00 IST Marketing Mix of Starbucks analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the Starbucks marketing strategy. This was after Starbucks had realized there was a huge market potential in other market segments. Respect ! Stephens & Co. raised the price target on Starbucks Corporation (NASDAQ: SBUX) from $86 to $100. Ho Peng-Cheng.An Analysis on the Market Segmentation of Starbucks and City CafÃ©. Web. The company offers its products under the Starbucks, Teavana, Seattle's Best Coffee, Evolution Fresh, Ethos, Starbucks Reserve, and Princi brand names. Kids and teenagers also make a sizeable portion of the Starbucks target market. This means that it sells more coffee than most fast-foods and convenience stores in the country. This was after Starbucks had realized there was a huge market potential in other market segments. Even the 50- and 60-year-olds rely on their smartphones to make their lives easier. The reason for recalling these products was the threat of contamination and allergens. Starbucks attracts various generations from teenager to senior citizen. Heinemann. Starbucks coffee shops are found mostly in Airports, Malls and even college campuses (Thompson, 7).Â The company has a presence in North America, South America, Europe, Asia Australia and even North Africa. ET Starbucks prides itself to be a place where one can go and get a quick fix. Company: Starbucks CEO : Kevin Johnson Year founded : 1971 Headquarter : Seattle, USA Number of Employees (Sept 2019): 346,000 Type: Public Ticker Symbol: SBUX Market Cap (Oct 2020): $ 105.22 Billion Annual Revenue (Sept 2019) : $26.51 Billion Profit (Net income) (Sept 2019): $3.60 Billion, Products & Services: Coffee | Handcrafted Beverages | Fresh food | Non-food items | Packaged goods | Mugs and accessories | Gifts | Competitors: Costa Coffee | McDonalds McCafe | Dunkin Donuts | Café Coffee Day | Tim Hortons | Costa | Panera Bread. However, letâs project out a year or so. Free shipping on orders $35+ or free same-day pickup in store. The culture of Starbucks. Ethel Marie The city of white cloud: a study of the market penetration of Starbucks in. Print. Welsh, Dianne, Peter, Raven & Nasser Al-Mutair. Starbucksâ Target Market In the united states, Get Expert Assignment Help and Score Superb Grades, Download paper from your email or personal account, Access to a pool of expert academic writers. Starbucks shares rose 0.4% to $100.55 in pre-market trading. Market capitalization (or market value) is the most commonly used method of measuring the size of a publicly traded company and is calculated by multiplying the current stock price by the number of shares outstanding. The consumption rate of Starbucks customers however differs with age. In terms of gender, Starbucks target market is evenly distributed. Case study: Starbucks coffee. Therefore, the target price for $108.24 (i.e., 33 times $3.28 ). Studies have shown that customers aged above 35 tend to consume more coffee compared to those aged between 18 and 25. Some of the coffee shops around the world are owned by the company while others are a franchise (Marie, 4). To appeal to this target market, Starbucks introduces new technology as soon as it is made available for commercial purposes. Starbucks shares rose 3.1% to $103.54 in pre-market trading. Starbucks is one of the most successful coffee shop chains with over 17000 stores in 52 countries. Starbucks needs to bring some improvements and advancements in the company to keep its market position stable and strong. Retrieved from. Guangzhou City: Journal of Business Strategy 29 (49-51). It was founded in Seattle, Washington in 1971. Posted on April 11, 2020 by nlo-admin | Comments Off on Starbucks Hits 2020 Target On October 1, 2018 , we posted 10-Year price targets for Starbucks (SBUX). Starbucks controls over 30% of the US coffee market (Welsh et al., 3). How does Starbucks Cater to its Target Market? How Does Credit Karma Work and Make Money? 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