I am not a typical coffee fan, but I am very interested in studying Starbucks’s success as a high value-added coffee chain. For a long time I have been curious about how Starbucks comes up with its marketing mix, especially the distribution strategy. There are so many starbucks stores in Vancouver, at some places there are even 3 stores at the one interscetion but located at 3 sides, but every store claims they are still making a profit. Moreover, besides tremendous store, Starbucks also enters the market in groceries and supermarket. What I interpret this fact is that Starbucks is using a differentiated targeting stragegy, which bases on the demogeographic and product-related segmentation, to make its products available as well as its brand name entrenched in different market segments, so as to increase its market share in the whole coffee market. According to this piece of news attatched, Starbucks is planning to expand growth in retail stores & supermarkets. It is reacting related to its competitors marketing strategies,which is said in the news: “[their] competitors are trying every angle to reach [their] customers.”
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