Starbucks Cafe Assignment Example | Topics and Well Written Essays - 750 words - 1

Starbucks Cafe - Assignment Example Today Starbucks Cafà © has divided its product into multiple segments. The first segment is its core customer base that visits the establishments on a weekly basis. These customers are the bread and butter of the business since the generated the firm most of its revenues. The second segment the company is targeting is Starbucks enthusiasts that want to incorporate a daily routine of Starbucks coffee drinking without the hassle of going to the store. The segmentation strategy has been accomplished by selling Starbucks coffee products at supermarkets. The third market segmentation is the penetration of Starbucks into the low end coffee market. The strategy was implemented without hurting the brand value of the company by rebranding Seattle Best Coffee. Seattle Best Coffee was a perfect product to compete with the new players in the gourmet coffee industry such as Dunking Donuts and McCafe. The new product could be sold at locations that Starbucks in the past did not visualize as suita ble for its products such as fast foods and cinemas.Sometimes in business choosing an accelerated growth strategy can have consequences in the long run. The company simply grew too fast. The company became so large that they saturated the United States market with too many coffee shops. The growth was amazing and its founder and the shareholders that invested in the firm from the start should be proud of their accomplishment. Now the problem lies in the expectations of the current and future shareholders. It is unrealistic to predict that Starbucks will ever return to the profit growth it once enjoyed. The organic growth model saw its demise in 2008. The firm will continue to generate good solid profits. It is highly possible for the firm to experience negative growth. Some stores have been closed already and I expect more stores to close down in the United States in the near future. The only way for the firm to achieve sales growth in the future is by expanding its international op erations. The company has to identify the best locations that offer a good balance between population size, customer income, low competition, and the high demand for coffee.