Question

Question 2: Product offering and targeting (30 marks, 300 words)

1. Discuss the three levels of a product by using Starbucks’ Vanilla Latte as an example.
2. Discuss the four targeting strategies. Which targeting strategy does Starbucks use for its Vanilla Latte beverage? Justify your answer. (Check Starbucks website if you are not familiar with this product)

Answer 1

Discuss the three levels of a product by using Starbucks’ Vanilla Latte as an example.

The three levels of a product include; core, actual, and augmented product. The core merchandise explains the benefits the coffee brings to gives the customers. The actual merchandise is the concrete service or product and is connected to the design and physical quality. The augmented product includes the non-physical elements of the product. Starbucks' Vanilla Latte core product gives nutritional benefits to clients because it is made of classic vanilla syrup, creamy steamed milk, and full-bodied espresso. The vanilla's tangible product includes good textured and thick latte. The augmented product includes the vanilla and creamy milk tastes.

Discuss the four targeting strategies. Which targeting strategy does Starbucks use for its Vanilla Latte beverage? Justify your answer

FOUR TARGETING STRATEGIES OF A MARKET

• Market segmentation is a mechanism in which the aggregate market is divided into specific segments or groups of customers with distinct preferences and demands or habits that may involve separate goods or marketing strategies.
• INTERVIEW. Initially following the creation of clusters of different customers, under this method, the organization can now evaluate the clusters and identify the target customers they expect to keep in the long term. They will then form BeES strategies on those targeted consumers after doing so.
• POSITIONING, Under this strategy , the organization decides whether to market its product so that it reaches targeted customers, using different advertising methods.
• CREATING A MARKETING MIX, Using this method after all of the above strategies, the company will use the four P's of marketing, product, price and promotion, and by using all of these tactics, the company will now attempt to cover more of the market by earning higher revenue.

But Starbucks uses the marketing mix approach so we will initially find that Starbucks does not operate in every requirement and they have a range of locations where they operate along with using different advertising campaigns to sell their goods and provide a fixed price for their product.Starbucks market segmentation and targeting can be easily noticed as we can see that starboard does not operate in each and every country so they have a set of provisions and operate in a cluster of countries and are essentially aimed at those clusters of people who can pay higher amounts of money to enjoy the deliciousness of drinks and food there.