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Starbucks

Marketing Research
by

Sabine Andersen

on 8 September 2010

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Transcript of Starbucks

“Over the past ten years, in order to achieve the growth, development, and scale necessary to go from less than 1,000 stores to 13,000 stores and beyond, we have had to make a series of decisions that, in retrospect, have lead to the watering down of the Starbucks experience, and, what some might call the commoditization of our brand.” - Howard Schultz, Starbucks CEO in an open email to the management 1. Starbucks – symptoms to take away
•Decline of sales
•Loss of market share
•Closure of stores globally
•With one exception: The UK 2. The UK coffee chain market – a double shot of problems

Two major competitors: Costa and Caffè Nero
Indirect competitors

3. Starbucks – in the news
•Lack of major competitive advantage
•Diluting of the Starbucks brand
4. Facing major marketing related problems:

Starbucks has watered down it's brand image

5. Phrasing the marketing research problem :

no available data on Starbucks' 4Ps in comparison to its main competitors

no insights on customers' perception of the marketing mix and brand
6. Stating the hypothesis:

1. Consumers do not perceive Starbucks as a brand with a unique character / selling point but rather as a diluted brand without a single message.

2. Starbucks is not understood as a local, comfortable place to be.

3. Customers do not get what they wish for when going to Starbucks.
7. Objectives of the marketing research

1. Get an detailed understand of customers' perception of the Starbucks brand

2. Understand customers’ attitude towards the brand

3. Get an insight in customer Psychographic

4. Find a way to generate customer satisfaction
8. The marketing research blend:

Step 1
Explorative research design – set up of quantitative questionnaire with qualitative elemnets - online survey

Convenience sampling

Sample size: 800

Step 2
Explorative research design – One-on-one interviews

Judgemental sampling (questionnaire participants)

Sample size: starting 10 The Environment The marketing Problem The marketing Research
&
Approach Thank you Time Frame: 3 Months
Budget: £20.000
Full transcript