Market Research Implementation Plan
Former Starbucks Executive Scott Bedbury once said “Brands need to communicate that they are along for the ride. They are made of flesh and emotion. That they are made possible by people” (10 Quotes from Starbucks Executives, 2010, para. 6). Starbucks’ beliefs in customer service, community solitude, and a strong business core stretch far behind just a belief in a quality caffeinated product. “We make sure everything we do honors that connection – from our commitment to the highest quality coffee in the world, to the way we engage with our customers and communities to do business responsibly” (About Us, 2011, para. 4). Thus, this commitment is the ...view middle of the document...
The opportunity actively researched is a “Coffee of the Month” Program offered at a special discounted price to draw in college students and other potential coffee patrons who often use Starbucks’ Wi-Fi services without making a real purchase. Offering a product at a discounted price ought to result in more coffee sales and larger revenue for Starbucks.
According to Entrepreneur Media (Secondary Market Research, 2012), secondary research consists of “outside information assembled by government agencies, industry and trade associations, labor unions, media sources, chambers of commerce, and so on. It is usually published in pamphlets, newsletters, trade publications, magazines, and newspapers.” For Marketing Team A’s market research, the types of secondary research needed are Starbucks’ demographics, and target markets, plus past studies on the coffee drinking habits of college students.
As for other coffee consumption facts, brewing coffee at home declined from 2006-2011 with 75% of total coffee sales made “away from home” (High Beam Business, 2012). Furthermore, an interesting study revealed the growth in this target market: “another new and large growing target market within the coffee industry is college-age students and post graduate individuals residing in urban areas. These two segments account for the largest portion of coffee drinkers” (Scribd, 2012, Marketing Analysis-Starbucks Company). In November 2007, a growing number of colleges opened eagerly their campuses to Starbucks franchises. For instance, the University of South Florida reported an average of 147,512 in additional foot traffic in the University’s library since the Starbucks Café opened in 2003 (Horovitz, 2007).
Recent research shows Starbucks holds a 33% share of the market in coffee sales within the United States; approximately 40% of those Starbuck’s sales were to young adults in the age range of 18 to 24. Furthermore, this market grows approximately 4.6% each year with Starbuck’s innovative and technological appeal (Hearst Communications, 2012). With such a large demographic of college students, Starbucks must continue to cater to this market segment and provide continually marketing strategies solely directed to this market.
Online Market Research
When researching secondary data, the Internet provides a vast assortment of market research data with little cost to the researcher. The tricky part is finding secondary data, which is useful to the marketing research project while answering specific questions. Searching the Internet takes time but there is a wide array of marketing resource tools available, such as search engines, to help the researcher gain the right information. Google and EBSCOhost Library are two common research engines to find secondary data from online sources.
In searching University of Phoenix EBSCOhost Library, Team A found a pertinent industry-related article about Starbucks and the price of coffee. The study studied Starbucks and the...