Buyer Behavior: Starbucks Essay

Custom Student Mr. Teacher ENG 1001-04 15 February 2017

Buyer Behavior: Starbucks

1. Interview

Conversation directed to a definite purpose other than satisfaction in the conversation itself. (Market Intelligence) The main advantage is that they normally achieve a high response rate and that the likely level of error being introduced into the research result is low.

2. Focus group discussion

A small group of people, considered to be representative of the target segment, invited to openly discuss products or issues at their leisure time in a relaxed environment. (Market Intelligence) This method is useful in providing a qualitative data. It is inexpensive to conduct, it can be done quickly, and it can provide useful, timely, qualitative data. It usually consists with 8 to 10 respondents and the interviewer taking the role of group moderator.

3. Projective techniques

The objective of projective test is to delve below the surface responses in order to obtain true feelings, meaning, or motivations. (Market Intelligence) 4. Observation It involves the personal and mechanical monitoring activities. It records actions as they occur and thus there is no lack of accuracy caused by a respondent’s faulty recollection of their past actions or inadequate estimate of future ones. (Market Intelligence)

5. Telephone research

Telephone research is relatively fast and low cost of gathering data. It is most useful when only a small amount of information is required. The advantages of this method are a wide geographical range, efficient, high response rate, modification question is possible. The disadvantages are a biased result, higher refusal rate, short interview, and no visual aids. (Market Intelligence)

6. Interview survey

The survey approach involves asking question of the target market or population. To obtain data, it is usually necessary to obtain a sample to provide an estimate of the characteristic of the entire population. This is qualitative or motivational research and provides information on behavior and attitude. (Market Intelligence)

7. Postal research questionnaires

Questionnaire is the primary tool of marketing research, a devise for delivering question to respondents and recording their answers. (Market Intelligence) The advantages are low cost, no interviewer bias, questionnaire length. The disadvantages are lack control of respondents and if the company find wrong customer than it will get wrong information. (Market Intelligence)

• Secondary data Starbucks purchases high-quality bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related accessories and equipment. In addition to sales through our company-operated retail stores, Starbucks sells bean coffees through a specialty sales group and supermarkets.

The Company’s objective is to establish Starbucks as the most recognized and respected brand in the world. In the 2002, Starbucks has branched to Indonesia and MAP is the one who won the master of licensing agreement in Indonesia. There are already more than 50 stores in Indonesia and the company is growing fast. The coffees that the company sells in Indonesia are from Colombia, Mexico, Kenya, New Guinea, Sumatra and Sulawesi. The menus are not much different than any other Starbucks store all over the world. The mission statement:

1. Provide a great work environment and treat each other with respect and dignity 2. Embrace diversity as an essential component in the way we do business 3. Apply the highest standard of excellence to the purchasing, roasting, and fresh delivery of our coffee 4. Develop enthusiastically satisfaction customers all the time 5. Contribute positively to our communities and our environment 6. recognize that profitability is essential to our future success

• Market research findings In Indonesia, most of people are already used to drink coffee and become a habit for some people, especially for older men. This is one of the benefits that make Starbucks as a successful coffee store in Indonesia. Starbucks also create a strong image for a modern and trendy coffee drinker for their customers. This is the reason not only mature men will purchase the product, but also women and even younger generation.

The price for Starbucks are quite expensive than the competitor. The environment of the store is cozy, relaxing working environment with calm colors decoration, and using wood material with simple style as their furniture decoration to create a minimalist natural. The workers in the store are friendly with a little dynamic attitude. The manager is a full time workers and the age is between 25 up to 40 years old. The counter staff are usually a part timer and the age is between 17 up to 30 years old.

There are some segmentation for their target market, such as young customer, young executive, executive and expatriate. Young customers are between 16 up to 23 years old. They usually prefer cold coffee drinks or blend coffee drinks, such as iced coffee latte, caramel frappuccino, blended milk green tea, etc. Young executive customers are between 24 up to 30 years old. They usually prefer cold coffee drinks, blended coffee drinks and brew coffee Executive customers are between 31-55 years old. They prefer brewed coffee and iced coffee rather than blend coffee Expatriate customers are between 40 to 55 years old. Most of them only like brewed coffee.

• Marketing research plan

The research plan that I would recommend for Starbucks is using questionnaires, focus group discussion, and observation.

1. Questionnaires

A questionnaire is the easiest method to gather data. It is low cost, no interviewer bias, questionnaire length is variable. The questionnaires that conduct in the Starbucks store are already implemented. This will be affective if we also do questionnaires for the competitors’ customers. The questionnaires objectives are to know what the most popular product competitor is, why the customer prefer the competitor store than Starbucks, and what competitor thinks about Starbucks.

2. Observation

The observation will be conducted in the competitors’ stores. It is the simple way to know the strengths and weaknesses of the competitor. Through this method, the company also can know the opportunities and the threats that caused by the competitor. The purpose of observation is to recognize which the most popular product in the target market is. Also what kind of varieties the competitors offer and the buying habit of target consumers.

3. Focus Group discussion

After conducting questionnaires, researcher would have a quantitative result. To go deeper into the core issue, a focus group discussion should be conducted. This method is useful in providing a qualitative data. It is inexpensive to conduct, it can be done quickly, and it can provide useful, timely, qualitative data. I would recommend 5-10 respondents which consist of Starbucks and competitors customers.

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