Based on the company, Starbucks, prepare a paper in which you research the current customer base, buyer behavior, demographics, psychographics, lifestyle, geographic area, benefit segmentation, and user segmentation for the product or service. Based on your research, identify the ideal target market for your Learning Team's selected product (Frappucinno)
In your paper, be sure to include the following:
a. Specific description of target market, which should be measurable, accessible, sustainable, differentiable, and actionable.
b. Total marketing budget (where the cost of acquisition isn't greater than 10% of the product retail price or one month of an annual service).
c. Estimate the size of the market and estimated penetration percentage.
d. Justification for your answers.
Scott Bedbudry, then Vice President of Marketing for Starbucks, succinctly said that "Consumers don't truly believe there's a huge difference between product" (Haig, 2004, p. 96). This observation would be central to the identification of the ideal target market for the Learning Team's selected product - the Frappucinno. This means that in order for the product to be successful - to attain its marketing goals and objectives - the Team must ensure that the Frappucinno is able to create and develop emotional ties with its target market. Thus the target market should be the market segment that has the highest possibility if developing emotional attachments with the product.
Before identifying the product's current customer base, buyer behavior, demographics, psychographics, lifestyle, geographic area, benefit segmentation, and user segmentation of its ideal target market, a discussion on the product is necessary.
The Frappucinno is a blended ice and coffee beverage. The allure of the Frappucino is its studied sophistication. First, the name itself projects a certain level of élan. This is the foundation of the emotional relationship between the Frappucinno and its ideal target market. This characteristic is can also be the basis of 'an experience of community that may be as addictive as the caffeine" (Haig, 2004, p. 97) in a cup of Frappucinno.
Based on the above characteristic and personality of the Frappucinno, the following sections of the research paper discuss the product's ideal target market and that market's characteristics.
First, the Learning Team believes that the ideal market would be the group of customers who are upbeat, tech savvy and affluent. Upon studying the Potential Rating Index by Zip Markets ...
This in-depth solution of 1113 words gives background detail on the Frappuncinno and identifies the target market. It also gives insight on how target markets are identified and using what categories. All references used are included.