Assume that a small local coffee store has hired you to help them with their target marketing. Here is the background information of this coffee store. It is located in State College, which is a college town with a population of 99,000 in PA. There are two Starbucks, two Dunkin’ Donuts, three McDonald’s where people can get a 1-dollar coffee, and a Pete’s coffee in the university library. This small coffee store is called Sam’s Café. It is very artsy. The store atmosphere is like a gallery. Modern paintings hang up on all the walls in the Café. The Café holds two sessions of reading club every Wednesday and Friday. There is also live music performance every Saturday night. Sam’s Café is new to town. Sam is worried about the competition. However, you believe that Sam could be more successful if it developed a target market strategy. Provide Sam with strategic suggestions on how to segment the market, who should be the target market, and how to position his store.
One student submitted his write up by stating that “Sam should target everyone in this small town”. His reasons are: 1) It is feasible because this town is small. 2) Coffee category includes all kinds of offerings such as brewed coffee (cold and hot), expresso beverages, etc. Everyone can find one drink in Sam’s café. 3) Starbucks is a good example for Sam. Starbucks targets everyone, so Sam’s Café should do the same.
Write a comment to this student. In your comment, please comment on:
- Should Sam’s Café target everyone and why?
- Provide a STP analysis as an example for this student. How do you segment and target the market? How do you position Sam’s Café?