Starbucks could greatly benefit from implementing geographical segmentation. By understanding the geographical locations of their customers, Starbucks can optimize their store locations to better serve high-demand areas. This could involve opening new stores in areas with high customer density and closing stores in areas with low customer traffic. This strategy would not only improve customer convenience but also increase store profitability.

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Bain's Management Toolkit (Part 2)

Learn from one of the world’s top consulting firms and use its strategies to bring success to your organization. This Bain’s Management Toolkit collec...

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Another segmentation type is geographical, which becomes important especially if you are an online or international brand. Geographic segmentation helps to design optimal distribution strategies because if you know your customers and where they are, you can figure out where to serve them. One factor that could aid your timeliness is to open additional locations where demand is highest and remove some of the friction from the wait at busy stores.

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Bain's Management Toolkit recommends handling geographical segmentation by understanding where your customers are located. This knowledge can help design optimal distribution strategies. For instance, if you know where your customers are, you can figure out where to serve them. One strategy could be to open additional locations where demand is highest to reduce wait times at busy stores.

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