Starbucks initially targeted wealthier, better educated customers who sought the Starbucks experience of hanging out in their stores. As Starbucks rapidly expanded, opening many new stores, their traditional customers declined and were replaced by a new breed of less affluent customers who just wanted coffee on the go. Recognizing the problem, Starbucks cut back store openings and reevaluated their customer segmentation using variables like age, gender, lifestyle, and location. They worked to regain their traditional customers and restore the Starbucks experience. Starbucks is now targeting new customer segments both in the US and abroad, and their profit growth has rebounded as a result of their new segmentation and targeting strategy.

1. Welcome To Our Presentation
Presentation On
Case Study-
STARBUCKS: JUST WHO IS THE STARBUCKS
CUSTOMER?
Submitted By:
Rajib Mia
Dept. of textile engineering,
Southeast University(SEU)
Gmail:mdrajibmia758@gmail.com
Phone: +8801774435305
SubmittedTo:
Mohammad Nazmul Ehsan
Assistant professor
Dept. of textile
Engineering
Southeast University(SEU)

3. Summary:
Starbucks corporation is an American global coffee company & coffee house. Its just a
handful of coffee shop settle into a chain of European style coffee house. Its vision wasn’t
based on selling only gourmet coffee, espressos, and lattes, it also provides a third place
away from home and work for customers. In 20 years time Schultz grew the company to
almost 1700 stores in dozens of country. Then he rose the numbers continuously. As it grew
company sales and profit initially increased, such as their growth routinely averaged 20%
or more each year, and they always made investors happy with a 25% annual increase in
the value of this stock for more than a decade. He impressed in this success, he announced
his investors to open 10000 new stores in just four years and then push starbucks to 400000
stores. But it was a wrong decision. As a result the Starbucks growth started to decrease
slowly. Then it started running its reverse.

4. However in a sign of recognizing the problem, Schultz cut back on the number of new stores
opening. In 2008 he announced store closer first 600,then 300 more. After this big damage of
profit share they couldn’t be hopeless. They restarted their company. They found the each
reason Why or what behind this situation, and try to solve it properly. For example, they set up
their target customer profile clearly defined, they gave up more importance to typical
customers instead of traditional, customers’ needs and moods, at last they went to that
customers who didn’t normally buy their product, and tried to know their reason. Starbucks
management believed that efforts to recapture that soul would get the company back on track.
And we can say that, they able to do it properly. Because, if we analyze their new
segmentation and strategy we can realize that it will be more effective and they already get
better result. i.e. in 2009 their profit % grow up 24% from the previous year.

5. Q-1: Using the full spectrumof segmentation variables, describehow starbucksinitiallysegmentedand targeted coffee market.
 According to the case study, Starbucks first evaluated the potential customers
in order to provide Starbucks experience. Their initial segment basically
geographic segmentation.
 Generally starbucks targeted the customers who fell in love with the Starbucks
experience specially- wealthier, better educated, and more professional than
the average American.
 More likely to female than male.
 Most likely between the age of 24-44.

6. Q-2: What changedfirst- the starbucks customersor the Starbucks Experience? Explainyourresponse by discussingthe principle of
market targeting.
 The Starbucks customers changed first. There were not enough traditional
customers around to fuel the kind of growth Schultz sought. Starbucks
became a less attractive place to hangout. The new breed of customers
were less affluent, less educated, and less professional. As the customers
profile evolved, the Starbucks experience grew to mean something
different to the new breed of customer, it meant good coffee on the run. It
was a place to meet and move on. The new customers came in much less
frequently than the traditional customers, as seldom as once a month.

7. Q-3: Basedon the segmentation variable,how is starbucks nowsegmentingand targeting the coffee market?
 Segmentation variables are- geographic variable, demographic
variable, psychographic variable and behavior variable. Starbucks
started to look all these variables in order to better target market &
their customers.
 Age, gender.
 Lifestyle, personality.
 City, neighbor and their personal attribute.

8. Q-4: Willstarbuckseverreturn to the revenue andprofit growththat it once enjoyed ? Whyor why not?
 Yes. Because they have a new good segmentation and targeting strategy.
They are targeting new segments that they didn’t target before. Trying to
regain the traditional starbucks customers via trying to restore the
starbucks experience. Only one fifth of starbucks sales come from outside
the United States which means huge potential growth outside the united
states.

9. Conclusion:
Starbucks is the largest coffee house company in the world. They grew up their company in a
short time, and they will be return their track after 2008 so fast. Behind their success, the most
important reasons are-
 They have always tried to make environment friendly for Starbucks, tried to change over
time and their focus not only to the consumers but also to the needs of the workers. Beside they
always provide training for their new staff so that they can serve the consumers more efficiently.
They are trying to give employees a beautiful environment to work. They also always look after
the health and cleanliness of their employees.
 The goal of Starbucks was to increase brand equity and create a brand identity consumers
minds that is: “COFFEE= STARBUCKS”. And they did it. For example they spread their brand
by opening store through all over countries. Recently they open few stores in Bangladesh.

10. THANK YOU