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  • Essay / The target market: the case of Starbucks - 1025

    This store is there to help support new stores that would enter the area. The goal was to have about 20 stores after two years of entering a market and to allow these stores to expand even further into smaller towns and suburbs. They also began adding a drive-thru, as that made it more convenient for parents of young children. Some of the disadvantages of the drive-thru were that it eliminated impulse purchases and sometimes created bottlenecks in the queue. Licensing the brand was also a great way to grow their business; by putting Starbucks in airports and shopping malls, they create a lot of foot traffic and lead to successful stores. Starbucks carefully considered its image and the image it wished to uphold when choosing licensees. The international market is now where Starbucks has the greatest growth potential. Currently, Starbucks plans to open 1,400 new stores in China. This represents more than half of the store it already has in China. The growth technique that impressed me the most was that having two locations so close together would not saturate the market. The first store would initially experience a decline in sales, but would rebound and the new store would grow. I notice we have this here at Target uptown, you can see the Starbucks across the street while you're waiting in line. Both also seem very busy most of the time. Question 3: It's clear that, generally speaking, the company's growth initiatives have been sound in terms of generating the growth Wall Street expected. But which Starbucks initiatives, in retrospect, were smart decisions for the brand and which were inconsistent with the brand ?