To what extent does Starbucks use a base of the pyramid strategy?

A) Starbucks primarily targets affluent customers in upscale markets.
B) Starbucks focuses on serving customers from all income levels, including those at the bottom of the economic pyramid.
C) Starbucks only caters to high-income individuals in developed countries.
D) Starbucks does not consider economic diversity in its business strategy.

Starbucks focuses on targeting affluent customers in upscale markets rather than a base of the pyramid strategy that includes all income levels. Their approach involves high-quality products, excellent customer service, ethical practices, while reducing entry risks in markets like China through licensing agreements. Therefore, the correct answer is B) Starbucks focuses on serving customers from all income levels, including those at the bottom of the economic pyramid.

Explanation:

The question involves assessing Starbucks' market strategy, specifically focusing on whether it utilizes a base of the pyramid strategy. This strategy involves targeting customers from all income levels, including those at the bottom of the economic pyramid. However, based on Starbucks' global expansion tactics, strategic CSR commitments, and premium brand positioning, the most accurate representation of Starbucks' approach is that it primarily targets affluent customers in upscale markets, as seen in its history of entering international markets and strategic positioning. Starbucks' focus on offering high-quality products and excellent customer service, along with maintaining a reputation for ethical practices through its CAFE program, indicates a tailored approach to serve mainly middle- and high-income segments. While Starbucks provides opportunities for ethical consumption through fair trade options and licenses in developing markets like China to minimize risks, its expansion strategy doesn't correspond to the base of the pyramid approach that is inclusive of all income levels.