Starbucks CEO Howard Schultz Case Study Example | Topics and Well Written Essays - 750 words

Starbucks CEO Howard Schultz - Case Study Example Starbucks has embraced a differentiation strategy at its business level of strategies (Geereddy, 2012). It provides products that cater for the needs of a specific targeted group of customers. The company offers tailor-made varieties of goods and services, and the premium prices. The company has more ways of differentiating products than most of its competitors since a customer gets an experience when he shops for coffee. They can thus charge a premium price. Starbucks focuses on innovation by continually introducing new products and coffee such as â€Å"instant coffee† Via. The instant coffee earned the company a sales growth of over 200 million. The new products are the force behind Starbuck’s evolution into a company that provides unique customer experience. The company tries to understand its target customers. Hence, they have grown globally as a number one choice for many clients. They provide a superior coffee to its clients. They value branding the image and product through word of mouth. As a result, they ensure their clients get a maximum experience in order to spread the word. They seek to understand the particular needs of an individual customer and serve him appropriately. For instance, they can allow customers to pay online or via phone if it is convenient for them (Starbucks Corporation, 2015). Starbucks applies demographic segmentation (categorizing markets by gender, age, ethnicity, income, and family life cycle). The company’s main target is men and women aged between 25-44 years. The market accounts for about a half of its total business. The company targets this group by offering special drinks that appeal to them. It further creates its business to be the third place to go between work and home by establishing unique and relaxing atmosphere. The next large group that Starbucks targets consist of young adults aged 18-24 years old. They account for about 40% of the company’s sales. Starbucks entice the young adults through the