Chapter 4. Market Segmentation
Examples of Segmenting
Starbucks is a global coffeehouse chain known for its specialty coffee beverages. Here's how they utilize the segmenting
criteria:
Demographic Segmentation:
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Age: Starbucks targets multiple age demographics. For young adults, they have trendy seasonal beverages (like the Pumpkin
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Spice Latte) that are often promoted on social media. For the older demographic, Starbucks might emphasize their classic
coffee blends and teas.
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Gender: While Starbucks does not heavily differentiate products based on gender, they do release products occasionally
that might appeal more to one gender than another, such as mugs or tumblers with specific designs.
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Income: With a variety of product price points, Starbucks caters to both daily coffee drinkers and those seeking premium,
higher-priced beverages like their Reserve Roasts.
Geographic Segmentation:
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Region: Starbucks adjusts its menu based on geographical location. In Japan, you might find Matcha-flavored drinks, while in the Middle East, a Saffron-infused Latte could be available.
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City/Neighborhood: Starbucks often designs stores to reflect the local culture and architecture, ensuring it resonates with the local community.
Psychographic Segmentation:
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Lifestyle: Starbucks markets itself as more than just a coffee shop. For those with on-the-go lifestyles, mobile order and pickup is available. For others who seek a space to relax or work, Starbucks provides a cozy environment with free Wi-Fi.
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Values: The company emphasizes its commitment to ethical sourcing, appealing to environmentally-conscious consumers.
Behavioral Segmentation:
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Product Usage: Starbucks Rewards is aimed at frequent customers, offering them points for every purchase, which can be redeemed for drinks or food.
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Brand Loyalty: Loyal customers often wait for seasonal beverages and merchandise. Starbucks capitalizes on this by bringing back fan-favorites year after year.
Through these targeted segmentation strategies, Starbucks has effectively positioned itself to cater to the varied needs and preferences of its global customer base.