Q2.

What group is Starbucks targeting in Taiwan and how do Starbucks’s offerings fit their
requirements? Which group is city café targeting and how do city café’s offerings fit their
requirements?

Starbucks target group is constantly expanding, trying to reach out to those who are health conscious by
offering a low-calorie coffee and fruit juices, after years of establishing Starbucks shows that they are
slowly expanding their target group to those who prioritize their health. The juice bar and low calorie
coffee are actually alternatives offered by Starbucks to those who feel that the current drinks on their
menu are a tad too sweet, or high in calories, which in overall is too unhealthy for their consumption.

Income group is also used to categorize the target group in Taiwan as price is substantially higher
compared to City Café. The price range is from 2.46$-5.08$ (75-155 NT$).

Starbucks offers wide varieties of coffees and food to cater to the needs of their target audience. They
also target the people who enjoy a small snack as a combination to the quality coffee or tea. Which is
why Starbucks import their high quality Arabica coffee beans and offer a wide selection of coffee and tea
menus ranging from western tea to traditional Taiwanese tea such as Jinxuan Oolong, Bi Luo Chun and
Oriental Beauty. The range of selection allows the consumers who enjoy coffee and tea to have options
when ordering and also helps reach out to a larger audience who may not be coffee lovers but enjoys
hazelnut, caramel etc. The availability of pastries and sandwiches allow their target group to enjoy their
drinks when they are hungry too. The pastries offered are not all westernized pastries such as cakes,
waffles, scones.

However, City Café is targeting the lower end customers as their price range is from $0.82 - $1.48, which
is comparably low to Starbucks. Specifically targeting students and workers with the age of 20 – 40 years
old who generally have lower purchasing power than those working in big corporate companies, and the
main reason why they actually drink coffee could be only for the caffeine inside it to help raise their
alertness so as to allow them to focus better while doing their assignments. This low priced, city café
coffee available near their study spots (since city café can be found anywhere and everywhere) thus
make them more inclined to purchase it.

City café, a convenience store coffee can actually be found at every corner of the country, at any time
since 7-Eleven chains operates 24hours a day because of the high number of city café outlets (from 500
to 2000 since 2005-2009.

This target group is always on the move so they came up with the theme of “the entire city is my coffee
shop” conveying the idea that their outlets can be found in many location around the city which gives
the target group the ability to grab a cup of coffee at their convenience. They do not have to worry
about buying their coffee within the shop operating hours or whether the place they are heading to
right now sells the coffee they want to buy.