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Marketing - Case Study Example

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As Dunkins researchers have concluded, their and Starbucks market is not segmented by age, race, and income level alone which are demographic variables, but more with the customers psychographics. What determines the preference among the customers of this market depends on their…
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Download file to see previous pages... In terms of personality, Starbucks targets people who want to stand out as individuals while Dunkins customers are people who want to be part of a crowd.
The segment that Dunkins is attempting to reach through positioning is what can be classified as average Joe--the middle income blue- and white-collar workers across all ages, races; who like to belong in a crowd; who although values nicer stores they like it to appeal to the ordinary Americans. These people do not like the fancy store layouts of couches, art-decorated walls and eclectic music; they also do not like glamorously-sounding labels—they complained that calling a hot sandwich a panini is too fancy, thus it is renamed as stuffed melt. They like more accessible products like flatbread sandwiches and gourmet cookies rather than pinwheels of doughs stuffed with various fillings, which remind them of something they have during cocktail hours instead of decent meals.
Yes, definitely. Marketing is about finding the right customers and providing values. A huge market cannot be served only by one player. There are different types of consumers, and even to a large player, providing all the needs and wants of the whole market will prove costly and will erode their profits. Therefore, they choose to serve the customers they serve best. In the coffee shop market, the higher income and professional groups are the target of Starbucks, people who want to stand out as individuals. But there are other types of customers. And seeing this segment not being served well gives a huge advantage to Dunkins. After knowing the distinct needs of this segment, a value proposition that carries the message about the benefits the company offers to fulfill these needs is just logical. If Dunkins instead competes with Starbucks in the other segment of the market and provide the same value proposition, it will only come up as second best, or an imitator ...Download file to see next pagesRead More
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