From this segmentation, Behavioral

From this segmentation, Behavioral Segmentation of Starbuck is the loyalty customers, and business people. They will appreciate the value of the product in that it saves time without compromising quality.










Starbucks Coffee’s market positioning
Knowthis.com (2014) posted that no matter which target marketing strategy is selected, the overall marketing strategy should involve the process of positioning the firm’s offerings in ways that will appeal to targeted customers. Marketing91 (n.d.) defined that positioning is the act of designing the company’s offering and image to occupy a distinctive place in the target market’s mind.















From the picture above showed about all of coffee company positioning in India, there are four main companies which are Starbucks Coffee, Café Coffee Day, Barista, and Costa Coffee. Starbucks’ positioning is high quality-high price. Café Coffee Day and Barista are the main competitors of Starbucks, but they aren’t the same positioning; they focus on low quality-low price. However, Starbucks still has one competitor that position itself the same, that is Costa Coffee.
Starbucks products always have been perceived with a famous image. With their high quality products, unique tastes, friendly environment, conveniences, customers are willing to pay a premium price for its products. As Starbucks extends their product line with the new Frappuccino flavors, it also faces competitors like Costa Coffee. Therefore, to retain a position in the customers’ minds as high quality, Starbucks needs to enhance its position by making it appear as nutritional. This can be achieved by lowering the calories or by adding real fruit to the product. As the product’s nutritional and taste increase, their perceive quality will also increase. Offering a more quality product for the same price will help increase sales and enable them to be more competitive in the customers mind. ( Ashish, n.d.)

In next part we want to compare the positioning between Starbucks Coffee and Costa Coffee.

Starbucks, on the other hand, are aiming to differentiate based on quality. They have decided to lengthen their product line by using an ‘upward stretch’, where high quality and more expensive items are introduced: the company is introducing coffee made using rare, luxurious coffee beans. Thus, unlike Costa Coffee, they are aiming to compete using a low-volume, high-margin sales approach.
Joshua (2011) posted that Costa Coffee has recently decided to acquire Coffee Nation, the operator of nearly 1000 self-service coffee machines for £60 million. These are position for convenience – railways, for instance, are littered with these machines where busy customers can quickly grab a cup of coffee. Hence, the firm wishes to rebrand these self-service points as ‘Costa Express’. Obviously, the firm benefits from high-volume, low-margin sales: they are differentiating themselves based on speed.
Rodenberg (n.d.) mentioned that Costa Coffee has been able to remain one of UK's leading coffee brewing companies for more than a century now primarily because of the execution of the company’s branding and positioning strategies to perfection. Add to the mix the company’s dedication to high quality of service and the formula for success is at hand. Moreover, the utilization of the appropriate knowledge management tools is necessary for their products to reach out to people even in different cultures. However, certain points have to be taken into consideration by Costa Coffee regarding knowledge management tools. Since their income is relatively higher than most coffee brewing companies, the time for implementation of their chosen knowledge management tools would take longer than usual, aside from being expensive. But since the goal of Costa Coffee is towards a long-term dominance and stability in the brewing industry, then the pursuit of these promotional campaigns will be beneficial for the company in the long run. We believe that maybe Costa is a dangerous competitor for Starbucks, so Starbucks should offer the good a thing to the customer and be different from Costa.