Starbucks Business Plan

People

Starbucks targets a well-defined audience. Starbuck’s primary target is men and women aged 25 to 40. “Starbucks’ appeal to this consumer age group through hip, contemporary design that is consistent in advertising and décor, and working to keep its products current as status symbols” (O'Farrell, n.d.). Customers tend to be individuals in professional careers with a relatively high income. This category accounts for approximately 49 percent of Starbucks’ total business. This target market does vary on the location of the store. Newer target markets have been amended to include younger adults who are less educated and in a lower income bracket. Men and women aged 18 to 24 accounts for approximately 40 percent of Starbucks’ total

The Giornale Store eventually won overthe public by creating an atmosphere of sophistication and charm. The company was then able toexpand and Schultz was given the opportunity to buy out Starbucks stores. Schultz had alwaysseen potential in the Starbucks Coffee even before starting Giornale but felt it lacked all themarketability andvision he had to offer. Schultz adopted the name of Starbucks thereafter, buthe quickly learned the morale as Starbucks was lacking.He then focused his attention todeveloping his company with employee benefits, national expansion, investments andmanagement development in mind.Schultz then decided toexpand to different territories to test Starbuck’s influence onother places besides Seattle. The response to Starbucks from Chicago was not very greathowever.Schultz learned he would have to make small adaptations in order to make Starbucksmore accessible according to the location of the store. Within three years the changes hadinfluenced customers to embrace Starbucks and Schultz decided to then expand stores toCalifornia. The success of the Californian locations led to the idea that Starbucks would beviable anywhere in the country.Once Schultz incorporated Flavor Lock bags into the company’sexpansion could lead even across the seas.Schultz knew for Starbucks to be not only successful but influential he would have toinvest highly in his employees. Starbucks began offering healthcare benefits to those whoworked part time. Schultz wanted to emphasize the importance of the Starbucks employee. Part-time workers were also offered stock option plans making them “partners” in the Starbuckscompany. Schultz also wanted to ensure a strong foundation of managers and experienced

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