Starbucks Take 2

In response to the questions posted on my last post:

"Look at the place they have picked at the Boulevard and describe the persons you see; is is a comfortable place to be in, to enjoy coffee or any liquid they make based on coffee?"

As you walk by the Starbucks at Boulevard, it reeks of upper middle class. Not in a bad way, but it's designed in a way that makes it clear that it is not just any coffee shop. The store itself is tidy and pleasant to look at. The outdoor patio, as well, is crisp looking and relaxed, with foliage and an open view of the street in front of the mall. This way, people can watch you enjoy your high priced coffee, and know that you're better off than them. Or so the brand would make you think. Starbucks has really achieved something big with their brand recognition, even internationally.

"Take a look at the segmentation chapter and comment on the position of Starbucks from that perspective. You know that inside the Boulevard is another coffee place. And of course in the other two malls as well. So, do the offerings differ that much because of the social segmentation?"

One thing I thought was interesting from checking out the chapter in segmentation was that international segmentation is done at the level of "macrosegmentation," or by looking at the entire country. As has become clear in recent years, there is a growing middle class in Chile. Starbucks took notice of that growth, which happens to be their target customer, and placed their stores at strategic locations within the country. The market potential in a country with growth as such is perfect for a company like Starbucks. It promises sustainability. The brand, also, is already recognized within the country from media that has come from the United States. And the brand is recognized here as a symbol of status. With that being said, I would say that the offerings don't different much from other coffee shops in the area (it's all espresso when it comes down to it), but the biggest draw is the social status drinking a Starbucks drink.