Segmentation
The Java Chip Frappuccino caters to the 25+ SEC A
section of the demographic. This TG has the requisite spending capacity to
indulge in recreational activities. An outing to Starbucks may not be
considered out of the ordinary for this segment. Households with kids may
consider spending some quality time since frappuccinos are high on milk
content. The aspirational youth segment is also another section of the
demographic that this line caters to. Nothing beats a casual date at Starbucks.
Targeting
Starbucks cannot expect to grow by offering the same products as its competitors. Starbucks must offer “points of difference” that will make customers want to come to Starbucks rather than competitors. The “points of difference” that make Starbucks new Frappuccinos distinctive relative to competitors fall into four important areas:
• Brand Experience: At Starbucks you aren’t just drinking a beverage, but are undertaking in an emotional experience by the surroundings.
• Brand Quality: Starbucks has been recognized for exceeding expectations by the quality of their products and their service. This is what will create their loyal customers.
• Perceived Health: People that are active are perceived to be healthier than those not active. According to surveys, aside from the coffee, Starbucks is perceived as a healthy establishment, which makes the new coffee-free Frappuccinos appear healthy as well.
• Convenient Access: Globally, Starbucks is everywhere and easily accessible. In many locations Starbucks offers drive-thru windows, which are more convenient than its competitors.
Starbucks cannot expect to grow by offering the same products as its competitors. Starbucks must offer “points of difference” that will make customers want to come to Starbucks rather than competitors. The “points of difference” that make Starbucks new Frappuccinos distinctive relative to competitors fall into four important areas:
• Brand Experience: At Starbucks you aren’t just drinking a beverage, but are undertaking in an emotional experience by the surroundings.
• Brand Quality: Starbucks has been recognized for exceeding expectations by the quality of their products and their service. This is what will create their loyal customers.
• Perceived Health: People that are active are perceived to be healthier than those not active. According to surveys, aside from the coffee, Starbucks is perceived as a healthy establishment, which makes the new coffee-free Frappuccinos appear healthy as well.
• Convenient Access: Globally, Starbucks is everywhere and easily accessible. In many locations Starbucks offers drive-thru windows, which are more convenient than its competitors.
Positioning
Starbucks products always have been perceived with a prestigious image. With their high quality products, unique tastes, friendly environment, conveniences, customers are willing to pay a premium price for its products. As Starbucks extends their product line with the new Frappuccino flavors, it also faces competitors like Costa Coffee. Therefore, to retain a position in the customers’ minds as high quality, Starbucks needs to enhance its position by making it appear as nutritional. This can be achieved by lowering the calories or by adding real fruit to the product. As the product’s nutrition and taste increase, their perceived quality will also increase. Offering a more quality product for the same price will help increase sales and enable them to be more competitive in the customer's mind.
