STARBUCKS

Jenny Tan

Chaw Htet Yee Win Zibran Julhan

Dominika Kwiecien Xue Ling Mao

Topics include:

• Introduction
• Sample Characteristics ( Sample size, Demographics, Segmentation)
• 3 research objectives and explanations
• Recommendation

What is STARBUCKS?

Starbucks is an American multinational chain of coffee houses. The product that we are going to be focusing on is coffee. Starbucks offers hot and cold coffee options. Coffee variations are americanos, brewed coffees, Cappuccinos and lattes. We also sell seasonal drinks such as pumpkin spice latte for fall.

Management Problem

Identify a target segment for the product/service,

and provide appropriate positioning for that segment.

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3 Research Objectives:

• To analyze differences in perceptions, attitudes and behavior between the segments
• To profile the segment that is most likely to use the product/service
• To determine the importance of attributes for the target segment

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We took a sample size of 151 people.

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SAMPLE CHARACTERISTICS

Out of 151 respondents,

• 116 had Starbucks in the past month.
• 35 did not.

The majority of the respondents were female.

• 81% are female
• 17% are male

DEMOGRAPHICS : GENDER

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Out of total respondents,

• 87% of them are 18-24
• 9% of them are 25-34

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Most of our respondents are young, 18-24 year olds.

DEMOGRAPHICS : AGE

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The majority of respondents are in

some college (44%)

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• 17% are high school graduate
• 17% are bachelor graduate

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Therefore, we concluded that respondents are either receiving college education or recently graduated.

DEMOGRAPHICS : EDUCATION

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Starbucks Purchase Frequency :

• Light users: less than once a week 47.79%
• Heavy users: 1 - 7 days a week

52.21%

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There are higher % of coffee drinkers in respondents

SEGMENTATION VARIABLE(S)

OBJECTIVE 1 : DIFFERENCES IN PERCEPTIONS

• Light users find Starbucks to be more comfortable than heavy users

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• Heavy users enjoy the taste of Starbucks coffee better than light users

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• More light users are only somewhat content with Starbucks, while a lot more heavy users are very content with Starbucks

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• Heavy users are more loyal to Starbucks than light users

OBJECTIVE 1 : DIFFERENCES IN ATTITUDES

• Light users are more likely to be unsatisfied with Starbucks

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• Almost all heavy users are satisfied with starbucks

OBJECTIVE 1 : DIFFERENCES IN BEHAVIOR

• Light users choose Starbucks more for its quality while heavy users choose Starbucks more for its convenience

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• Light users are more likely to choose Starbucks for its brand than heavy users

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• Light users enjoy non - coffee beverages and refreshers more than heavy users

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• Heavy users are more likely to purchase food than light users

OBJECTIVE 2 : SEGMENT MOST LIKELY TO PURCHASE STARBUCKS

Heavy users of Starbucks:

• Mostly consist of females ages 24 or younger, who have at least graduated from high school

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• Are likely to display a high level of satisfaction when it comes to their overall experience at Starbucks

OBJECTIVE 2 : SEGMENT MOST LIKELY TO PURCHASE STARBUCKS

Heavy users of Starbucks:

• Are likely to have consumed Dunkin’ in the past, making Dunkin’ a main competitor

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• Their main reason for repurchasing our products is because it is convenient

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• Mainly purchase our coffee and espresso beverages

OBJECTIVE 3 : IMPORTANCE OF ATTRIBUTES FOR TARGET SEGMENT

According to overall survey, we found that the important of attributes for

both users are Convenience and Quality.

• In the list of attributes, Heavy users pay more attention to quality of the product.
• In the list of attributes, Light users pay more attention to the convenience when buying coffee.

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In conclusion, Quality is 1st priority and Convenience is 2nd Priority for both heavy and light users.

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RECOMMENDATION

When asked about what coffee brands they buy most often/favorite,

• 73% chose Starbucks as #1
• 13% chose Dunkin Donuts as #2

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We chose to target Dunkin Donuts customers to switch to Starbucks

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RECOMMENDATION

We will persuade DD’s customers that Starbucks:

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1. Employees are kind and friendly
2. Comfortable atmosphere
3. Better smell and taste of coffee

Based on the responses of people opinion on Starbucks,

RECOMMENDATION

Since most respondents are either attending college or freshly graduated,

• We will have a promotion of giving $15 Starbucks gift card if they have not registered for Starbucks app

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• We will collab with TikTokers highlighting how Starbucks have a better quality of Coffee and customer service experience than Dunkin Donuts

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