1. How did Starbucks initially use segmentation to targeted coffee markets?  2. Did the Starbucks customer or the Starbucks Experience change first? How do the principles of market targeting relate to that change? 3. Based on the segmentation variables, how is Starbucks now segmenting and targeting the coffee market? 4. Will Starbucks ever return to the revenue and profit growth it once enjoyed? Why or why not?

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February 2020 saw the beginning of the spread of COVID-19, which was soon declared a global pandemic. As of this writing in March 2020, different countries and different states within the United States have established widely varying policies and practices regarding the continued operation of restaurants, including coffee shops, and the number of patrons allowed in those that remain open. Because it cannot be accurately predicted when restaurants will be able to assume normal operations, the effect on businesses such as Starbucks that derive much of their income from in-store retail sales remains unknown.

Setting aside the current climate of uncertainty, and observing developments through 2019, it seems reasonable to expect that Starbucks will not regain its previous levels of success. One of the main reasons is that the chain became a victim of its own success. Its role in creating a new category or making a niche mainstream opened it up to emulation and then condemnation. Its model...

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Last Updated by eNotes Editorial on April 1, 2020