Starbucks has been described as the main representative of “second wave coffee,” a retrospectively termed movement that popularized artisanal coffee, particularly darkly roasted coffee. Since the 2000s, third wave coffee makers have targeted quality-minded coffee drinkers with hand-made coffee based on lighter roasts, while Starbucks nowadays uses automated espresso machines for efficiency and safety reasons.
Starbucks locations serve hot and cold drinks, whole-bean coffee, microground instant coffee known as VIA, espresso, caffe latte, full- and loose-leaf teas including Teavana tea products, Evolution Fresh juices, Frappuccino beverages, La Boulange pastries, and snacks including items such as chips and crackers; some offerings (including their annual fall launch of the Pumpkin Spice Latte) are seasonal or specific to the locality of the store. Many stores sell pre-packaged food items, hot and cold sandwiches, and drinkware including mugs and tumblers; select “Starbucks Evenings” locations offer beer, wine, and appetizers. Starbucks-brand coffee, ice cream, and bottled cold coffee drinks are also sold at grocery stores.
What is Starbucks target market?
Starbucks’ primary marketing strategy is targeting men and women who are aged 25 to 40. They account for almost half (49 percent) of its total business (like the coffee chain’s consumers). 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.
The target audiences for Starbucks share a variety of characteristics, including a high-income bracket, an awareness of social status and environmental consciousness. Starbucks’ recent decision to carry bakery products from San Francisco-based La Boulange has reinforced the coffee chain’s upscale, artisanal image.
Starbucks’ young female customers place a premium on health and personal appearance. So the chain targets them with lower-calorie “skinny” beverages. Recently, Starbucks has begun to target affluent young families with products like organic fruit squeezes for toddlers and containers of vanilla milk.
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 aged 18 to 24, total 40 percent of Starbucks’ sales. Starbucks positions itself as a place college students can hang out, study, write term papers and meet people. A Starbucks appeal 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 aged 13 to 17 accounts 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 a 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.
Specialty coffee drinks account for around 75 percent of Starbucks’ sales, but an increasing amount of its business is centered 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.