1 | P a g e

1. Why Starbucks’ primary target market is men and women age between 20-40?

Ans. accounting for nearly 50% of their customer base. Since a majority of their

customers reside in the cities with moderate to high income, they market their brand to

keep up with the urban styles and trends but also try to keep their company focused on

giving back to the community.

2. The Starbucks brand is one of their greatest strengths…..can u justify these

statement?

Ans. It is known for its good quality, pleasant service, and free Wi-Fi. The brand has

customer loyalty which is rewarded through different rewards programs and ways to

make the experience easier and quicker for those in a hurry. Its many locations are picked

to be easily spotted by many people; which is also the reason many people choose

Starbucks to meet with friends and colleagues. Because of its brand, Starbucks has an

advantage over its competition. People know what to expect, it is easily recognizable and

fits a variety of needs, like getting a bite to eat or having a quiet place to work. Due to its

high customer loyalty, its sales keep growing and they keep expanding their number of

stores and locations like their recent opening of a store in Panama

3. What is Starbucks’s major weaknesses?

Ans. Although Starbucks is continually growing and expanding into many regions, its

product is considered a luxury good. Food and coffee is typically considered a necessity

item or normal good, however, Starbucks is a brand associated with luxury. As

mentioned above, much of their market is targeted towards the moderate to high income

demographic. As long as the economy prospers luxury goods will sell well, but when the

economy takes a turn for the worse, spendable income will be saved and used mostly for

necessary goods.

2 | P a g e

4. Over the past couple of years Starbucks has enjoyed a steady increase in revenue or

its revenue gets decreased?

Ans. Over the past three years Starbucks has enjoyed a steady increase in revenue, from

$16.45 billion in 2014 to $19.16 billion in 2015 to $21.32 billion in 2016. Based on the

research and the provided revenue, it seemed that Starbucks was more successful from

2014 to 2015 when they grew $2.71 billion in revenue, unlike the following year when

their revenue growth slowed to $2.16 billion.

5. Can you state product range that offered by starbucks except coffee?

Ans. Starbucks is known as a coffee shop; however they sell a wide range of products

like tea, smoothies, baked goods, sandwiches, salads, yogurts, and fruits.

6. Can advertising significantly help maintain Starbuck’s image?

Ans. The few commercials which Starbucks had created were quite successful

One commercial featured a character drinking a double shot drink in the morning before

going to work

The band “Survivor” is in the background singing “Eye of the Tiger” while character is

drinking

Another commercial has a character named “Stacey” who takes a break at work to drink a

Frappuccino beverage

7. Starbucks provides different forms of their coffee- can you explain it?

Ans. Starbucks provides 5 different forms of their coffee (Whole bean, Ground, VIA, K-

Cups, and Pre made filters)

3 | P a g e

8. Is Starbucks created a joint venture with any organization?

Ans. Starbucks created a joint venture with Pepsi-Cola which had driven up company

sales

9. Starbucks has a slogan “Uniquely Starbucks” …..can you explain how its helps it for their business?

Ans. The uniqueness of customers experience at Starbucks results in the word-of-mouth

advertising with their customers

Their premium products with its rich taste and aroma also results in the word-of-mouth which the

company depends on primarily

Their “Perfect Cup of Coffee” allows Starbucks to emphasize on product quality which allows it

to advertise differently than most businesses

Viral marketing also plays a huge role in their advertising campaigns and word-of-mouth

advertising

10. How starbucks used social media?

Ans. Starbucks has a social media marketing strategy, as well

Their social media has created an online community with the Starbucks brand Starbucks is part of many social media sites, such as Facebook, Twitter On the company's Facebook and Twitter page, consumers are able to express their opinions about

the company through online blogs The company is able to join consumers during blog conversations Discussions via blogs are another word for “new media”

On May 3rd, 2009 Starbucks had launched a long term, multi channel campaign. It’s goal was to emphasize the unique experience, exceptional coffee, and the brand’s quality value

………………………………………………………………………………………………………………………………