This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
MKT 4003
RESEARCH IN MARKETING
GROUP PROGECT
Module Leader: Dr. Simon Manyiwa
Seminar Tutor: Cheng-Hao Chen
Academic Group: Marketing Management
Name: Vaibhav Salvi, Gaurang Parkeh,
Student No: M00286508, M00268082
Assessment: GROUP COURSEWORK
Date: 4th May 2010
1
TABLE OF CONTENTS
EXECUTIVE SUMMARY 3
BACKGROUND 4
M, R, Q COMPONENTS 7
RESEARCH DESIGN 9
DATA COLLECTION INSTRUMENTS 14
DATA ANALYSIS, FINDINGS, RECOMMENDATIONS 19
LIMITATIONS 27
BIBLIOGRAPHY / REFERENCING 28
2
Research Project on Starbucks
Executive Summary
This paper focuses on the research study which was conducted in London to know the
consumer awareness about the Starbucks in terms of its Pricing Strategy and Brand
equity. Although the research was conducted because of the problem raised in the year
2009 as Starbucks decided to close of 61 of its 84 Australian stores and to start up with
the closure of 600 stores in United States but on the other side Britain was a substantial
growing market with unexploited potential .The research study was undertaken to know
the impact of Undaunted decision taken by Starbucks and how it affects the daily
consumers behaviour in London (UK). Quantitative research method was used for
conducting the above research study. Demographics are considered in the formation of
research design. A group 120 respondents were selected in order to achieve the
desired aims and objectives. Likert summated scale was used in the questionnaire to
assess the consumer attitude towards the Starbucks in terms of a Brand. Casual
research was selected to conduct the research as it helps to predict about such type of
‘Hypothetical Scenarios’. Non-Probability Judgemental sampling was selected to for
conducting the survey for our research study. The results from the study can be used by
the marketer to better understand the consumer awareness towards Starbucks.
3
Background Research
Starbucks was formed in 1985 under the direction plus leadership of Howard Schultz.
Howard currently serves as the Chairman of the Board in addition to lead visionary of
the trade. Starbucks purchases as well as roasts high-quality whole bean coffees plus
sells them, beside by means of fresh, rich-brewed coffees, Italian-style espresso drinks,
chilly blended beverages, a selection of complimentary food items, coffee related
accessories as well as equipment, a selection of premium teas in addition to a line of
compact discs, primarily through Trade-operated retail stores.1 Starbucks uses
ingenious marketing strategy by offering the coffee products at a higher price as
compared to the average market price.
Starbucks was opening new stores every day somewhere in the world during the 1990’s
and it continued into the new millennium. However there have been decline in the
growth of domestic market. But on the other side starbucks as a brand is booming in
other countries. Starbucks coffeehouses began to give consumers a different kind of
feeling about drinking coffee. Partners know as employees of starbucks are acquiring a
different kind of experience then one a regular barista would expect. In the year 2005
Fortune magazine rated starbucks as the 11th best place to work in the United States
and in the year 2007 UK stores were voted among the top 10 best places to work by
Financial times.2
Starbucks as a brand had enjoyed phenomenal growth since 1988 when Howard
Schultz was the chairman and also become one of the great retailing stories of recent
history by producing excellent coffee drinks and selling dark-roasted coffee beans and
coffee-making equipment. Starbucks brand was considered as one of the finest and
most effective brand names in America and the company had firmly established itself as
Hence the research study was conducted in London to know the consumer awareness
about the Starbucks in terms of its Pricing Strategy and Brand equity. Managing and
measuring brand equity has become an important part to study. Managing brand equity
primarily involves managing the consumer’s mind. Starbucks must set objectives to
improve the brand equity as measurement is a management essential. Hence the study
will help us to know the understanding of consumer’s awareness towards Starbucks.
Brand equity helps in Asset management/leveraging, Consumer franchise (facilitates
loyalty) , Lower the communication costs, Improved prices/margins/market share,
Value to your Consumer, Recognition, consistency, confidence, image/status, etc.
Consequently taking into consideration the above benefits of Brand equity it has
become significant to know the customers awareness towards Starbucks as a brand.
Hence, the main purpose of this research was to know the consumer attitude and
behaviour towards Starbucks which will be studied in detail by focusing on Branding,
Pricing and competition.
8
RESEARCH DESIGN
Quantitative research method was used for conducting the above study. For the above
study a group of 120 respondents were selected in order to achieve the desired aims
and objectives. Considering the limitations of budget the research study was undertaken
on a small scale by selecting the respondents who are regular visitors of Starbucks.
Demographics was consider in the formation of research design which is given as
follows
DEMOGRAPHICS:
Gender: Male – 66 Female – 54
Age: 15-24 years - 45respondents
25-34 years - 48respondents
35 years and above- 27respondents
Income: £1 - £15,000 - 34respondents
£15,001 - £25,000- 28respondents
£25001 and above- 58respondents
Gender: - The number of male and female participants taken for the survey are approx.
same as it would help in understanding the brand equity amongst the two groups (male
and female).
9
Age group selected for this particular survey is from 15-24 years as it represents the
student category which can include students from high school and also at university
level. The second age group is 25-34 years as this group represents the working
population. Hence the band equity can be measured amongst this group
Scale Selection: The questionnaire was given to the respondents and it was based on
Likert summated scale which is mostly used to assess consumer attitude towards the
Starbucks in terms of a Brand. Every question had an option 1) Strongly agree, 2)
agree, 3) neither agree nor disagree, 4) disagree and 5) strongly disagree. The scale
was analyzed in the following form; it was rated from 1 to 5 in which 1 is strongly agree,
2 is agree, 3 is neither agree nor disagree, 4 is disagree and 5 is strongly disagree.
The research survey was conducted at different Starbucks outlets where all the regular
customers participated.
10
Research selected (Causal Research)
“Casual Research analyses the degree of influence of one or more independent
variables upon one or more dependent variables.”7 Casual research is concerned with
the establishing cause and effect relationships and it examines the degree of influence
of one or more independent variables upon one or more dependent variables. Casual
research is applied to evaluate affect of a particular change on existing norms. The
organization can build their business plan depending upon the hypothetical scenarios.8
Casual research helps market researchers to predict about such type of ‘Hypothetical
Scenarios’ which can be best explained with the help of following example, if the
company comes up with the new style of product packaging, casual research will help to
measure the impact of the new product packaging in the market. Conducting the casual
research the company will be able to make a decision whether to change the packaging
of the product and whether it is profitable for the company. From the above example it
can be concluded that casual research is a process by which we can see how the
current actions taken by the company affects the business in the future.9
The same situation is with Starbucks stores. Undismayed by the closedown of 61 of its
84 Australian stores and the beginning of a 600-store closedown programme in the
United States, Starbucks has discovered Britain as a substantial growing market with
unexploited potential. However experts consider that the sufferings that have troubled
Starbucks in U.S. and Australia could come to roost in United Kingdom. Starbucks
stores are the equivalent as they were 5 years ago. Starbucks should revaluate entirely
parts of the business, from signage to the course of customers, store design and
product range and mix. Consequently it becomes clear that if Starbucks does not
accommodate, its inspirations outside America, including Britain, could soon run out
steam.
7 Ray Kent, Marketing Research Approaches, Methods and Applications in Europe 8 http://www.marketresearchworld.net/index.php?option=com_content&task=view&id=799&Itemid=64 9 http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article4453831.ece