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					  Rad Research

  ADV 344K
  May 7. 2008

   Adele Pitzer
Shannon Albritton
 Brittani Porter
Kelsie Wiedmann
    Jill Young
Executive Summary

       Currently Starbucks is losing market share, and with this knowledge we wanted to collect

both primary and secondary research in order to ultimately gain insight into target consumers, in

this case college students at the University of Texas. Our goal was to conduct secondary research

and look further into Starbuck’s current situation, and target their problems. From there we

turned to primary research in order to get a deeper look into how college students feel about

Starbucks and their brand position against competing coffee houses.

       We conducted secondary research to better understand Starbucks’ history and

background as well as the nature of their current problems. We used our findings to create a

situation analysis that identified both problems facing the company and opportunities for

improvement. This resulted in a SWOT analysis that guided us in our primary research.

       After completing our situation analysis, we observed customers at various coffeehouses

around Austin to identify variables that we could study to better understand the preferences of

our target audience, University of Texas students. Our observations gave us a better idea of

factors that, with further study, would give us insight into people’s motivations in choosing a

coffeehouse.

       We followed up these observations by conducting more in-depth primary research,

through the use of a focus group session in order to delve further into the consumer’s attitude

about the Starbucks brand versus their competition. We held an intimate focus group session

with nine participants in which we encouraged open-ended discussion, with the guidance of a

moderator. We used the participants’ responses to gain a better insight into the target consumer,

and used our observations from this session to assist in our creation of our other primary research

method, our online survey.
       The survey was our last step in conducting our primary research. From the results that we

found through secondary research, observation, and our focus group, we created a survey that

was intended to help us draw more accurate conclusions about our target consumers. We created

a survey online and then sent the link to college students so that they could complete the survey

anonymously, and feel free to answer accurately and honestly. We were able to use these results

to help us better understand where Starbuck’s stands in the mind of the target consumers, and the

reasons why they had positioned the brand this way.

       Our ultimate goal in carrying out these research methods was to get a better

understanding of how Starbucks is currently positioned in the mind of college students, and why.

This aided us in our final step, which was to take all of the findings and then give our

recommendations on the best way to revive the Starbucks brand among the targeted segment.
Introduction

       Our goal is to find consumer insight that provides our client with an accurate

understanding of college students as target consumers for Starbucks. We executed this task by

collecting a variety of primary research, including observations at different coffeehouses,

conducting a focus group with college students, and conducting a survey. We also used

secondary research, including articles and other information found online about Starbucks and

other Austin coffeehouses. We concluded with a section of our own recommendations on future

marketing communications for the Starbucks chain.



Situation Analysis

       Since 1971 when the first store opened in Seattle, Starbucks has become the number one

retailer of premium coffee both in the United States and abroad. Starbucks now has over 15,000

locations in over 35 countries and plans to open 2,500 more stores across the globe in 2008

(Bramhall 1).



Product:

       Starbucks was one of the first retailers for premium coffee in the United States. What

started as chain of simple coffee houses has seen growth from simple coffee to new teas and

frozen drinks and from drinks to food and dessert. Starbucks products are even available in

grocery stores. The brand has expanded into one of the most recognizable brands in the world

and this recognition has been transformed and expanded to a wide variety of products outside of

premium coffee. These products include coffee making products, books, and music. These

products are often promoted and sold at Starbucks locations (Bramhall 1). The Starbucks
Corporation has to other ventures besides coffee. For example, Starbucks Entertainment was

formed in 2004 to help link the brand with marketing ventures, films, music and books (Horovitz

1).

       In the last year Starbucks’ coffee has stated to fall out of favor with consumers for

various reasons. One of the attempts to bring customers back includes adding some new

products to the menu. Starbucks is launching a new more authentic drip coffee called Pike Place

Roast that will go back to the original practice of pressing and preparing coffee onsite (Pike

Place 1). Also, Starbucks has decided to introduce two new smoothie drinks as well as a line of

health conscious energy drinks in an attempt to draw consumers from a younger demographic

(Energy 1, New Drinks 1).



Industry:

       Starbucks falls into the restaurant/fast food category, and more specifically the specialty

eatery category. Specialty eateries are defined as “companies that own, operate, and/or franchise

limited menu eateries, including gourmet coffee houses and bagel shops,” (Bramhall). Starbucks

was a forerunner in this category, but many new businesses coming onto the scene in the last

decade have created a “cluttered coffee environment,” (Vella 2). This, coupled with a “softening

U.S. economy” discourages many consumers from paying for Starbucks’ premium (and

expensive) products (2).



Competition:

       From 2002 to 2005, Starbucks has held the top spot in an annual consumer coffee survey

conducted by Brand Keya, until Dunkin’ Donuts was named the consumer’s favorite in 2006
(York 1). This study proves Dunkin’ Donuts to be a major competitor. Dunkin’ Donuts offers

simpler, cheaper products than Starbucks, and has a more in-and-out atmosphere that appeals to

many consumers. Dunkin’ is also opening hundreds of stores in new cites, including Dallas, TX,

where 150 new stores will open over the next few years. The new stores will include “updated

store designs with a new menu, including pizza, flatbread and breakfast sandwiches, and the

chain’s hot and iced coffee,” (Dunkin’ 1).

       Another new competitor for Starbucks is McDonald’s. The fast-food chain has

announced that it will install its own coffee bars with baristas serving cappuccinos, lattes, and

other coffee beverages at 14,000 US locations (Morris 1). Like Dunkin’ Donuts, McDonald’s

offers a lower price point and has less emphasis on atmosphere than Starbucks.

       In addition to McDonald’s and Dunkin’ Donuts, Starbucks competes with smaller chains

like Pete’s Coffee as well as local single-store businesses.



Consumers:

       Starbucks image of upscale quality tends to attract high income consumers, but according

to Anne Saunders, Senior Vice President of global brand strategy, Starbucks targets every

consumer who drinks coffee (Lockyer 1). While this may be true, in recent years, Starbucks has

made an effort to expand marketing to include lower income patrons as well as putting emphasis

on the Hispanic market (2). Starbucks has also shifted some focus on children and teens. Teens

control a greater portion of buying power then ever before and by marketing to younger people,

Starbucks can build brand loyalty at a younger age (Weeks 1).
Starbucks SWOT Analysis

Strengths                                       Weaknesses

 Well known brand                                 Expensive
 Quality image                                    Not health conscious
 Variety of products- mugs, products in           Locations are too close to each other
       grocery stores                              Cluttered- too many products in the store
 Lots of locations                                Locations are usually small
 Large menu- includes food options,               People want to get in and out more easily
       energy drinks                               There is a charge to use the wireless
 Customer service- custom orders                  Menu chalkboard is too unorganized- can
 Gift cards                                            be intimidating for new customers
 Atmospheres of comfort
 Internet access
 Innovative CEO
 Some locations have drive-thru option

Opportunities                                   Threats
 Delivery                                       Little advertising
 Membership program                             Local alternatives
 Customer cards with their typical order        Copy cats- offer similar choices at a
  (makes it easier to order a complicated         lower price point
  drink)                                         Competitors expanding to new areas
 “quiet” areas for study or work                 (Dunkin’ Donuts)
 Choices specifically for kids
 In-store brewing
 Frequent buyer card
 Mugs for free refills

Major Problems:

      With the current state of the U.S. economy, many consumers are choosing to spend

       money in other areas than coffee. Customers are choosing a less expensive alternative

       like the $.99 coffee from Dunkin’ Donuts or coffee made at home rather than making a

       daily trip to their local Starbucks.

      Starbucks stores are considered by many customers to be too cluttered. There are

       typically several stands full of Starbucks merchandise as well as CD’s and books that

       impede the customer’s path. This can be annoying, especially at high traffic times.
       These number of items purchased is low compared to the number of customers that come

       to Starbucks, making the displays unnecessary as well as cumbersome. The menu is also

       cluttered, and can be confusing for new patrons. The menu is constantly changing, with

       additions and specials scrawled on chalkboards usually separate from the main menu.

       This can be intimidating for customers, especially new or infrequent ones, and can

       discourage people from choosing Starbucks.



Key Opportunities:

      To combat the lower priced competitors, Starbucks must instill a message of quality with

       their customers that will remind them that the price for a Starbucks coffee is worthwhile.

       This can be done by going back the original Starbucks’ idea of quality coffee made fresh

       in the store. This idea of quality could be augmented by serving coffee in mugs to patron

       who choose to stay at Starbucks and offering free to those people. This gives people a

       feeling of getting their moneys worth and encourages them to stay in the store for longer

       periods of time.

      One way to make new patron more comfortable at Starbucks is to cut down the clutter,

       both in the store and on the menu. By simplifying the format of the store, Starbucks will

       become more appealing to average consumers. A more simple presentation will make

       ordering less intimidating and will encourage repeat visits from new customers.
Focus Group Research

Research Objectives:

       The research objective in conducting our focus group was for us to gain a deeper insight

into our target markets coffee shop preferences in comparison to the Starbucks brand. We

wanted to further understand our target consumers, college students, attitudes, and actions

toward Starbucks in comparison to their competition. We wanted to develop a strong

understanding into what our target group felt were the strengths and weaknesses of Starbucks.

These findings were needed to get a more saturated look into the thoughts of our target subjects.



Data Collection Procedure:

        We chose to run the focus group in the most traditional way possible within our means.

Since we did not have access to an observation facility we decided to use a living room in one of

the group member’s houses. This way it would be a very natural laid-back setting where

everyone would feel comfortable, and free to voice his or her opinions. We ran our focus group

on a Wednesday evening, to assure that college students would be done with school for the day

and could attend at their convenience. We offered drinks, food, and candy in order to put

everyone at ease and create a natural setting. As the participants arrived, we offered them seats

and then told them to make themselves comfortable and help themselves to any refreshments.

After everyone was situated we handed out consent forms and detailed out the situation for

participants, offering an explanation for how the study would be conducted, and explained the

use of the video camera and that other group members making observations and taking notes.

Our main goal in conducting the focus group was to make the setting and discussion as natural as

possible so that everyone felt like they could voice their opinions and talk freely.
Sample:

       We had a total of nine subjects that participated in the focus group, two boys and seven

girls. This was a convenience sample, taken of acquaintances of the group members. The sample

was skewed because of the fact that there were several more female subjects than male, which

could have affected the results of the focus group. Our screening question to determine

eligibility for the focus group was “are you an undergraduate student at the University of Texas

and have you ever been to Starbucks?” All of the participants answered yes to this question.

Each are current college students, with representatives from several colleges including

Communication, Education and Natural Sciences. We attempted to get students from different

areas of the university so that the subject pool would have some diversity, in order to see how

different people felt about the Starbucks brand, and other coffeehouses.



Results:

       After conducting our focus group research we recorded our results and began to form

conclusions and really look deeper into the results we collected. We first wanted to see who

drank coffee versus any other drink. Most of the people did drink coffee occasionally. There

were seven participants who drank coffee on an occasional basis, one who had coffee at least

once a day, and two that never drink coffee because they dislike the taste and smell. From there,

one of our first key findings was that the reason why they drink coffee. For the most part, it came

down to the utility effect; the students in our focus group relied on coffee for the caffeine to help

them stay awake. This led to the finding that they usually drank it at night time to assist them

with studying or doing schoolwork . All of the participants minus the two non-coffee drinkers

used coffee for this effect, and because they enjoyed the taste. The two non-coffee drinkers said
that they preferred the use of energy drinks, such as Five Hour Energy, or Red Bull to keep them

awake while studying.

       The second most important factor in choosing a coffeehouse among our participants was

the atmosphere. The tendencies seen most often in this area were the cost, with the complaint

that Starbucks is just too pricey, and it is hard for a student to afford on a regular basis. One

participant voiced the point that “The cost, if you go to Starbucks everyday, and add up what you

spend in a month, it is ridiculous, and I don’t have that kind of money.” Although this was a

complaint, many of the students still preferred going to Starbucks to get their coffee because of

the taste and the fact that they have several locations on and around the UT campus. However,

two of the girls said they just make their own coffee at home because it is a lot more convenient.

       The majority of the group agreed that they had a tendency to usually stick to the same

beverage choice that they get every time whether it be a special order beverage or hot or cold

coffee. One of the boys said that he was not so much interested in the atmosphere, but wanted to

just get his coffee and go. On the other hand both of the non-coffee drinkers said that they go to a

coffee house for the setting. One said “If I go, it is usually for the atmosphere like Mozart’s or a

place like that.” Another participant agreed and said that when going to a coffee house, it is

usually for social reasons and to talk and hang out with friends. About half of the students agreed

that atmosphere did play a part, and being able to sit outside was a preference. Their main

concerns in coffeehouse selection was the way the beverage tastes, convenience, whether there

was a good atmosphere with internet access, and not too much noise so that they can study.

       A drawback that were emphasized by the group was the fact that often when they go to

coffee shops they feel bombarded by chatty workers, and are put off by the confusing menu

choices. Two of the group members voiced their opinion that they did not like the way that
coffee made them feel jittery, and gave them bad breath. As for the actual experience, one of the

girls said that she often got menu anxiety when entering a Starbucks or other location where the

menu was vast and confusing to figure out. Another participant added to this by saying that she

had recently had an uncomfortable experience at a Starbucks when she was trying to order from

the menu. The employee behind the counter announced in front of the whole store “We have a

first timer here.” Everyone agreed that situations like this make them uncomfortable and are a

deterrent from trying to order a beverage at these coffee houses, especially when the names

become too technical and hard to understand.

       Midway through the focus group interview we took advantage of the use of a projective

technique and had the participants draw what they thought the typical stereotype of a

coffeehouse patron was like. Basically everyone had similar assumptions about the typical

coffeehouse consumer. Eight of the ten participants drew a similar stereotypical coffee drinker,

while two had a different idea. They majority described a younger intellectual guy, who was an

Austin hippie, who goes to the coffee shop to have long intellectual discussions with others that

are similar to himself. Of the two that had different ideas, one drew a “supermom” that was

getting her caffeine fix, and the other drew a young “ditzy” girl who was very trendy and loves

shopping and always pays with her credit card.

       One of the last topics that we got the groups opinions on was the abundance of Starbuck’s

locations and how they felt about this new phenomenon of having a store on “every corner”.

Two of the girls said that they felt it was smart, that way they can get as many customers as

possible, and it is very convenient for everyone involved. Most people agreed saying that often

traffic is so hard to deal with at certain hours that it is helpful to have more locations that provide

for easy access, although two of the girls brought up the point that it is starting to be over the top.
Key Findings:

       The main objective in conducting our focus group research was to get a greater insight

into college students and their brand attitude of Starbucks in reference to other coffee shops. The

key findings that helped us further understand them and assist in the creation of our survey and

finally our recommendations became clear after reviewing our results. College students are

mainly interested in drinking coffee for the effect that the caffeine has on them. They tend to not

so much drink it on a regular basis, but to use it as a study aid to be used when necessary.

Although they may not be drinking this beverage everyday other preferences play a part in their

coffee house selection such as price and taste. They also helped us to understand what they felt

like were key components when choosing a coffee house, convenience, outside sitting area,

minimal noise, price, and taste. Overall from these conclusions we were able to form suggestions

for the Starbucks brand and help us form our survey questions.
Survey Research

Research Questions:

       Our focus group gave us a qualitative insight into our target market. Our next step was to

conduct a quantitative survey. The survey gave us the opportunity to get feedback from a larger

number of students and to find out if the ideas from the focus group would apply to the larger

audience. Our research objectives for the survey were to find out why members of the target

audience choose Starbucks over other coffeehouses or vice versa and what discourage consumers

from going to Starbucks.



Data Collection Procedure:

       We administered our survey online to ensure the anonymity of our respondents. We

wanted our participants to feel as comfortable as possible answering our survey questions

honestly. Also, we choose the online format so that we could easily compile and calculate the

results. We choose to use SurveyMonkey.com to administer the survey.



Sample:

       We took a convenience sample of University of Texas students based on the group

member’s knowledge of the participants and their coffee consumption. We contacted our

participants via e-mail and gave them approximately one week to complete the survey to ensure

that our respondents had plenty of time to give their full attention to the survey and were not

rushed. We sent the survey to 40 people, and 25 responded. Of those who participated there

were 18 female, 3 males and 4 participants who declined to designate. The survey was skewed
toward females, most likely because this was a convenience sample and all the group members

are female. The age range was 19-22, which is standard for college students.



Results:

       We discovered that 56.7% of the respondents choose Starbucks as their number one

choice for coffee over Mozart’s, JP’s Java, Spiderhouse, Seattle’s Best and Dunkin’ Donuts.

Only 3.3% ranked Starbucks lowest. JP’s Java and Mozart’s each had 13.3% of people rank

them as number one (see appendix graphs 1 and 2). This shows that Starbucks is popular with

the target market of UT students.



                                            starbucks


                                                                         1.00
                                                                         2.00
                                                                         3.00
                                                                         5.00
                                                                         6.00
                                                                         Missing




       After determining that many students favor Starbucks, we wanted to find the reason why

students choose it over the local alternatives. We first asked respondents, using a constant sum

question, to identify the factors that were most important among location, atmosphere, quality

and price. We found that location was most important. 29.9% of respondents gave location four
points or more, whereas 60% of people gave atmosphere 2 points or less (see appendix graph 5).

66.7% gave price 3 points or less, which suggests that price is less important a factor when

choosing a coffeehouse (see appendix graph 6).



                                               location



                    8




                    6
        Frequency




                    4




                    2




                    0
                        .00   1.00   2.00   3.00     4.00     5.00   6.00   7.00   10.00

                                                   location



       We also wanted to determine if student choose Starbucks as a place to study and if so,

why? We found that 70% of those surveyed do go to coffeehouses to study on a regular basis

(see appendix graph 3). We did a cross-tab analysis to find out what factors make a coffee house

conducive to studying. The factors that included in the survey were quiet surroundings, internet

access, comfortable seating, music, and outdoor seating. We found that 38% choose a

coffeehouse based on comfortable seating, which was the highest. The second most selected

factor at 30% was internet access. The least motivating factor was music, with only 1% choosing

based on this factor (see appendix graph 4).
                                                   Do you go to a coffee
                                                     house to study?          Total

                                                     1.00         2.00
                       comfortable         Yes               8           0            8
                                           No                1           12           13
                       Total                                 9           12           21

                                                 Do you go to a coffee
                                                   house to study?

                                                  1.00           2.00         Total
                       internet      Yes                 7               0             7
                       access        No                  2              12            14
                       Total                             9              12            21



       We found through our focus group and situation analysis that many consumers feel

overwhelmed and intimidated when ordering at coffeehouses. We found through a likert scale

question that 33.3% of people either agreed or strongly agreed with the feeling of intimidation.

Only 3.3% strongly disagreed. This suggests that the cluttered store and menu make it difficult

for people to feel comfortable coming to Starbucks.



                                       intimidated by extensive menu


                                                                                       1.00
                                                                                       2.00
                                                                                       3.00
                                                                                       4.00
                                                                                       5.00
                                                                                       Missing




                                                                                1- strongly
                                                                                   disagree
                                                                                2- disagree
                                                                                3- neutral
                                                                                4- agree
                                                                                5- strongly
                                                                                   agree
Key Findings:

       Our survey showed that many college students already prefer Starbucks. However, we

also found that these same students have reservations about certain attributes of Starbucks. For

example, many people like to study at a coffeehouse, but they prefer a more comfortable

environment if they are going to stay for a long period of time. Also, students look for a

convenient location and are less willing to travel for a pleasing atmosphere. Location is

important for students because they do not always have time to spare in travel time. One major

problem that our survey uncovered is that many people are intimidated by an extensive menu at a

coffeehouse. This can be a major deterrent for many students and is a problem that Starbucks

needs to address.



Recommendations

       After conducting extensive research on college students, we have gained several insights

that have helped us understand their behaviors, perceptions, and attitudes towards Starbucks. We

have several suggestions that would help Starbucks return to the high quality and comfortable

coffeehouse that it once was. Furthermore, we have recommendations on how to position

Starbucks in the market place that would reach and satisfy our target consumer.



Key findings:

      The complicated and constantly changing menu can be confusing for potential customers.

       It may also be a deterrent to new customers that are unfamiliar with the Starbucks menu.

      Most Starbucks consumers buy the same drink every time and don’t need to look at the

       menu.
      A lot of students prefer to drink coffee for the caffeine when they need to study.

      Comfort is a big factor when students want to study at a coffeehouse.

      Price doesn’t determine whether or not they like Starbucks, but it can determine how

       often they will go there. Many students preferred making their own coffee at home.

      Students that don’t want to study at coffeehouses are normally pressed for time or in a

       hurry, so they are looking for convenience.

      Starbucks does not give off a local and original feel like other “Austin-only”

       coffeehouses.

Marketing Communication Recommendations

Marketing elements:

      Starbucks should have fewer options to choose from.

      Workers should be less intimidating and realize that not everyone is a “regular” at

       Starbucks.

      Give consumers more incentive to visit Starbucks.

          o Frequent buyer card – if consumer buys a drink over 3 dollars, they get a stamp.

              Every 15th stamp they get a free cup of coffee.

          o Membership card – the computer keeps track of customer information, such as

              drinks that they buy most often, so that there is no hassle when ordering.

          o Entertainment – jazz or blues bands would be entertaining and at the same time

              easy to study to. This would also give a more “Austin” feeling at local stores.

      Locations near campus stay open until 2 or 3 AM because many college students want a

       place to study late at night other than a library, and they often want a cup of coffee to

       help them stay up.
      A walk up window to make it more convenient for those in a hurry or don’t want to deal

       with the clutter inside.

Advertising:

      Outdoor advertising – because students are on the go and drink coffee early in the

       morning to wake up or when they need to study.

      Sponsor “green” events. This also appeals to the Austin audience

Public Relations:

      Becoming more involved in the community would produce less of a “chain-like” feel to

       Starbucks.

Promotions:

      Hold contests or games outside of Starbucks that involve students and fit to their lifestyle.

           o Football Throwing Contest – during football season have a game where students

               can attempt to throw a football into a tire, and if they make it they receive a

               discount card.

      Picture Week – trade a picture of you and your friends drinking Starbucks coffee for a

       discount on your next cup, and your picture on the wall. This would give incentive for

       Starbucks customers, new and old, to first buy a cup of coffee and then encourage repeat

       purchases. The bulletin board would showcase the personality of each individual

       consumer.

      Endless Cup of Coffee Week – we discovered from our observational research that other

       coffeehouses offer free refills of coffee to encourage customers to stay throughout the

       day. We moderately agree with this idea; however, believe it to be more beneficial during

       a particular time of the year, for instance, finals week.
Works Cited

Bramhall, Joe. “Starbucks Corporation.” 2008. Hoovers. U of Texas at Austin Lib. 6 May 2008

       <http://premium.hoovers.com.ezproxy.lib.utexas.edu//>.

“Dunkin’ Donuts Begins Dallas Rollout.” 5 Mar. 2008. Mintel. U of Texas at Austin Lib. 6 May

       2008 <http://academic.mintel.com.ezproxy.lib.utexas.edu//_academic/my_profile_info/

       &list=my_bookmarks//=326795#hit1>.

Horovitz, Bruce. “Starbucks Aims beyond Lattes to Extend Brand.” USA Today 19 May 2006.

       USATODAY.com. 19 May 2006. USA Today. 6 May 2008

       <http://www.usatoday.com////-05-18-starbucks-usat_x.htm>.

Lockyer, Sarah E. “Starbucks Boosts Expansion Outlook 25% amid Demographic Gains.”

       Restaurant News 16 Oct. 2006: 3+179. Lexis Nexis. 16 Oct. 2006. 6 May 2008

       <http://ezproxy.lib.utexas.edu/?url=http://search.ebscohost.com.ezproxy.lib.utexas.edu/.a

       spx?direct=true&db=bth&AN=22776890&site=bsi-live>.

Morris, Keiko. “COFFEE BATTLE BREWING: Java Giant Heats up for a Fight; With

       McDonald’s and Others Thriving, Starbucks on Defensive.” 9 Jan. 2008. LexisNexis

       Academic. LexisNexis. U of Texas at Austin Lib. 6 May 2008 <http://web.lexis-

       nexis.com.ezproxy.lib.utexas.edu/>.

“Starbucks Launches New Pike Place Coffee.” 8 Apr. 2008. Mintel. U of Texas at Austin Lib. 6

       May 2008

       <http://academic.mintel.com.ezproxy.lib.utexas.edu//_academic/_history/&list=my_histo

       ry//id=331524#hit1>.
“Starbucks Plans Line of Energy, Health and Wellness Items.” 21 Mar. 2008. Mintel. U of

       Texas at Austin Lib. 6 May 2008

       <http://academic.mintel.com.ezproxy.lib.utexas.edu//_academic/_history/&list=my_histo

       ry//=328703#hit1>.

“Starbucks to Tempt Consumers with New Drinks.” 30 Apr. 2008. Mintel. U of Texas at Austin

       Lib. 6 May 2008

       <http://academic.mintel.com.ezproxy.lib.utexas.edu//_academic/_bookmarks/&list=my_b

       ookmarks/display/=54692//=334764>.

Vella, Matt. “How to Reenergize Starbucks.” 21 Feb. 2008. Business Source Corporate.

       EBSCO. U of Texas at Austin Lib. 6 May 2008

       <http://search.ebscohost.com.ezproxy.lib.utexas.edu/>.

Weeks, Carly. “Starbucks Eyes Piccolo Clients; Coffee Giant Preparing to Change Its Menus and

       Products to Target Teenagers, Children.” The Montreal Gazette 15 Oct. 2007, FInal

       Addition ed. LexisNexis Academic. LexisNexis. U of Texas at Austin Lib. 6 May 2008

       <http://web.lexis-nexis.com.ezproxy.lib.utexas.edu/>.

York, Emily Bryson. “Starbucks CEo Taps Team for Return to Roots.” 21 Jan. 2008.

       Communication and Mass Media Complete. EBSCO. U of Texas at Austin Lib. 6 May

       2008 <http://search.ebscohost.com.ezproxy.lib.utexas.edu/>.
Focus Group Discussion Guide

Intro- explain the focus group and introduce everyone; anytime you have a thought say anything
you want.
    o Name
    o Where you’re from
    o Kind of coffee drinker- occasional, always, never
            o How many cups of coffee would you say you drink in one week?
Motivation
    
     Why do you drink coffee
            o Studying
            o Social
            o Relaxation
            o Caffeine
            o Habit
            o Influence
            o Dessert/ after dinner; breakfast (muffin)
     When
     Other preferences
            o Tea
            o Energy drinks?
     Why don’t you like coffee?
            o Cost
            o Taste
            o Reputation
            o Time
Location
     Make your own?
     Where do you go to get coffee?
            o Always?
            o Why that place over others?
                     Convenience
                     Taste
                     Cost
                     social
     Do you pick it up or stay there?
Environment
     What do you look for in a cup of coffee?
     What do you look for in a coffee house?
            o What kind of service do you expect?
            o Comfort?
            o Outside environment?
     Is there a stereotype frequent coffee house consumer?
            o Draw
Dislikes
      Is there a coffee house you don’t prefer
            o What happened; why?
      Type of coffee you don’t prefer?
      Have you ever felt intimidated when ordering or at a coffee house in general?
      Service, crowds, advertising, reputation, quality
Orders
    Health conscious
    Food along with coffee?
    Confusing? And why?
    Need help ordering?
    Order the same thing every time
    Hot or cold?
Rad Research Survey

We are researching coffee drinking habits of consumers:

   I. How often do you drink coffee?
           1. Less than once a week
           2. Once a week
           3. Two to three times a day
           4. Everyday
           5. Multiple times a day
   II. Assume that you have 10 points and divide the points among the following reasons to
           indicate the relative importance of choosing a coffee house.
           1. Location                  ______
           2. Atmosphere                ______
           3. Quality of coffee         ______
           4. Price                     ______
           5. TOTAL                     ______
   III. Rank the following coffee houses to reflect your preference. Place a 1 next to the coffee
           house you prefer the most, a 2 at the next best coffee house through 6 which you would
           place next to the least preferred coffee house. There can be no ties and please use each
           number only once. If you are unfamiliar with the coffee houses please select “don’t
           know”.
           1. Starbucks         ______
           2. Mozart’s          ______
           3. JP’s Java         ______
           4. Spiderhouse       ______
           5. Seattle’s Best ______
           6. Dunkin Donuts ______
           7. Don’t know        ______
   IV. Why do you drink coffee? Check all that apply
           1. Caffeine          ______
           2. Taste             ______
           3. Social            ______
           4. Habit             ______
   V. Read the following statement. Then place a check on the scale to indicate the extent to
           which you agree or disagree, if at all, with the statement.

                                     I go to a coffee house to study.
           1.   Strongly agree
           2.   Slightly agree
           3.   Neutral
           4.   Slightly disagree
           5.   Strongly disagree

                               I go to a coffee house for the social aspect.
           1.   Strongly agree
           2.   Slightly agree
           3.   Neutral
           4.   Slightly disagree
           5.   Strongly disagree
                  I go to a coffee house because of the influence of my friends.
       1.    Strongly agree
       2.    Slightly agree
       3.    Neutral
       4.    Slightly disagree
       5.    Strongly disagree

                          I visit a coffee house for business/ meeting purposes.
       1.    Strongly agree
       2.    Slightly agree
       3.    Neutral
       4.    Slightly disagree
       5.    Strongly disagree

                          I go to a coffee house because of the outdoor seating.
       1.    Strongly agree
       2.    Slightly agree
       3.    Neutral
       4.    Slightly disagree
       5.    Strongly disagree

VI. Do you go to a coffee house to study?
       1. Yes (proceed to next question)
       2. No (skip to question 7)
VII.   What attributes do you look for in a coffee house? Check all that apply.
       1. Quiet                     ______
       2. Internet access           ______
       3. Comfortable setting       ______
       4. Music                     ______
       5. Outdoor seating           ______
VIII. Please indicate to the extent to which you agree or disagree with the e following
       statements:
                           A healthy option is important to me

       1.    Strongly disagree
       2.    Disagree
       3.    Neither agree or disagree
       4.    Agree
       5.    Strongly agree
                             I often feel intimidated by a complicated or extensive menu

       1.   Strongly disagree
       2.   Disagree
       3.   Neither agree nor disagree
       4.   Agree
       5.   Strongly agree

                             Customer service affects my perception of the coffee house

       1. Strongly disagree
       2. Disagree
       3. Neither agree or disagree
       4. Agree
       5. Strongly agree

IX. How often do you purchase food with your coffee or drink?
        1. Always
        2. Sometimes
        3. Never
X. Fill in the correct blanks

   Gender
      1. Male
      2. Female

   Age ______

   Race
      1.   Caucasian
      2.   Hispanic
      3.   African American
      4.   Asian
      5.   Other ______________

   I live…
        1. On campus
        2. Near campus
        3. 20 minutes from campus
Rad Research Group
CODE BOOK
         Questions               Variable Names            Coding Values

                                     Coffu1       1 – Never (less than once a week)

                                     Coffu2       2 – Once a week

How often do you drink coffee?       Coffu3       3 – 2-3 times a day

                                     Coffu4       4 – Everyday

                                     Coffu5       5 – Multiple times a day


                  Location          Impbc1


Importance of    Atmosphere         Impbc2
  choosing a                                      Constant sum assign 1-10 points
 coffee house     Quality of
                                    Impbc3
                   coffee

                    Price           Impbc4


                  Starbucks          Pref1
                   Mozarts           Pref2
                  JP’s Java          Pref3
                                                  Rank coffee houses with 1 being
Coffee house
                 Spiderhouse         Pref4        most preferred and 6 being least
 preference
                                                  preferred
                Seattle’s Best       Pref5
                Dunkin Donuts        Pref6
                 Don’t know          Pref7


                                    Drinkbc1

                                    Drinkbc2         1- Yes
  Why do you drink coffee?
                                    Drinkbc3         2- No

                                    Drinkbc4
I go to a coffee house to study.   Goto1

I go to a coffee house for the
                                   Goto2
social aspect.
I go to a coffee house because                1-strongly agree / 5-strongly
                                   Goto3                disagree
of the influence of my friends.
I visit a coffee house for
                                   Goto4
business/meeting purposes.
I go to a coffee house because
                                   Goto5
of the outdoor seating.

                                   Study1   1 – Yes
  Go to coffee house to study?
                                   Study2   2 – No


                                   Attr1

                                   Attr2
                                            1 – Yes
  Attributes in a coffee house     Attr3    2 – No

                                   Attr4

                                   Attr5


A healthy option is important to
                                   Feel1
me.

I often feel intimidated by a                1-strongly disagree / 5-strongly
                                   Feel2
complicated or extensive menu.                            agree

Customer service affects my
                                   Feel3
perception of the coffee house.

                                   Food1    1- Always

         Purchase food             Food2    2 – Sometimes

                                   Food3    3 – Never
          Gend1   1 – Male
Gender
          Gend2   2 – Female


          Race1   1 – Caucasian

          Race2   2 – Hispanic

 Race     Race3   3 – African American

          Race4   4 – Asian

          Race5   5 – Other


          Live1   1 – On campus

I live…   Live2   2 – Near

          Live3   3 – 20 minutes from campus
Further Survey Data


                      mozarts


                                  1.00
                                  2.00
                                  3.00
                                  4.00
                                  5.00
                                  6.00
                                  Missing




      #1


                      jp's java


                                  2.00
                                  3.00
                                  4.00
                                  5.00
                                  6.00
                                  Missing




      #2
                                                       Case Processing Summary

                                                                              Cases
                                             Valid                        Missing                           Total
                                   N                 Percent            N       Percent                 N           Percent
quiet * Do you go to a
coffee house to study?                   21            70.0%                  9          30.0%              30          100.0%
internet access * Do
you go to a coffee                       21            70.0%                  9          30.0%              30          100.0%
house to study?
comfortable * Do you
go to a coffee house to                  21            70.0%                  9          30.0%              30          100.0%
study?
music * Do you go to a
coffee house to study?                   21            70.0%                  9          30.0%              30          100.0%
outdoor seating * Do
you go to a coffee                       21            70.0%                  9          30.0%              30          100.0%
house to study?

#3
                                                                  Crosstab

                                                              Do you go to a coffee
                                                                house to study?
                                                                1.00           2.00          Total
                                   music         Yes                    2              0          2
                                                 No                     7             12         19
                                   Total                                9             12         21
#4

                                                                  atmosphere



                              10




                               8




                               6
                  Frequency




                               4




                               2




                               0
                                       .00             1.00            2.00           3.00       4.00            5.00

                                                                        atmosphere
           #5
                                     price



                 8




                 6
     Frequency




                 4




                 2




                 0
                     1.00   2.00   3.00           4.00   5.00   8.00

                                          price
#6

				
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