Final Report

docx

School

DeVry University, Keller Graduate School of Management *

*We aren’t endorsed by this school

Course

320

Subject

Marketing

Date

Feb 20, 2024

Type

docx

Pages

Uploaded by AmbassadorMandrillMaster426

S t a r b u c k s N e w M a r k e t R e s e a r c h | 1 Joseph Ritchwood DeVry University MKTG320 Michael Faulkner 12/11/2022

S t a r b u c k s N e w M a r k e t R e s e a r c h | 2 Introduction Starbucks began as a whole bean coffee roaster and retailer in 1971. Starbucks was established by Jerry Baldwin, Zev Siegl, and Gordon Bowker at a rented location in Seattle's Pike Place Market. According to the Starbucks Firm Timeline, when Howard Schultz joined Starbucks in 1982 as the head of retail operations and marketing, the firm began supplying coffee to upmarket restaurants and espresso bars (2022). After visiting Milan in 1983, Howard Schultz was inspired by the popularity of espresso bars there to create a culture of coffeehouses akin to that in the United States. Starbucks started selling coffee drinks and espresso made from its own coffee beans quite fast.Starbucks is trying to decide whether it needs to enter a new market with a fast-food restaurant. Researchers are interested in both regions with little competition and areas where there is a high demand for fast food goods. To make sure that their firm blends into the local market, the fast food chain aims to expand into other markets where there are complementary industries. This will increase consumer satisfaction and increase sales by making their products more accessible. Therefore, in order to select the best location, researchers must do in-depth market study. More people visit Starbucks outlets every day than ever before, and mobile ordering has surpassed traditional counter ordering in popularity. The menu has expanded from a few drinks to hundreds since establishments built primarily for hot beverages are unable to satisfy the demand for more specialized cocktails and cold beverages. Additionally, food is becoming a more significant part of the mix; although before the food choice was limited to morning pastries, the menu now offers hot sandwiches that are accessible all day (Pieper, 2022).

S t a r b u c k s N e w M a r k e t R e s e a r c h | 3 Problem As Starbucks grew and expanded, problems started to appear. Despite the enormous success of Starbucks' debut into China, there remained cultural barriers. Starbucks announced that it will close a branch in Beijing's City Wall in the early part of 2007 in response to criticism in the Chinese media. Starbucks' decision to shut its coffee shop showed Chinese sensitivity to traditional symbols and discontent with the invasion of Western popular culture (2007). In other words, it would damage Chinese culture and jeopardize a rare historical item, according to opponents, to have an American coffee shop in the royal palace. In July 2000, just a few months after entering China, Starbucks debuted in Sydney. As of 2008, it has more than 90 locations around Australia. Nevertheless, the bulk of Starbucks stores in Australia had to close before the end of the year. They had a $105 million loss, which led to the closure of 61 of their outlets. Their sluggish rate of development, the pre-existing coffee culture, and a lack of adaptability were the key reasons restricting their growth. They allegedly began too soon and didn't give the Australian client enough time to become acquainted to the Starbucks brand, according to Thomas O'Connor, a research analyst at Garner (Ashley, 2018). Australia already had a vibrant coffee culture, but Starbucks sought to expand there too quickly and "grew faster than its popularity" because it didn't take into account the attractiveness of its local coffee shops. Starbucks' prices were higher than those at local coffee shops, and the beverages had more sugar than what Australians were used to. Despite significant cultural challenges, Starbucks wants to grow abroad. Research will be required if we want them to be successful.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

S t a r b u c k s N e w M a r k e t R e s e a r c h | 4 Market Research Hypothesis Testing To determine the nature of the link, a hypothesis test will be conducted. The goal of this study is to ascertain the relationships between the environment, market location, information technology, and coffee quality at Starbucks Coffee Shop. The results of this study are meant to assess those factors, show how they are connected or related, and provide readers a deeper understanding of the positive traits of Starbucks locations when entering a new market. In this examination, the quantitative research technique will be used (Arain et al., 2010). The questionnaire will be utilized as the study's instrument, and the Likert scale will be used as a rating scale to evaluate and analyze the results. Sample and Population A population is a collective of individuals who share certain traits. In contrast, a sample is a subset of a population that consists of a specific number of characteristics (Noor, 2008). The target audience for this study is those who go a long way to a Starbucks. 180 people make up the study's sample. Methods of Data Collection Both secondary and primary data will be used in the investigation. The information source for the primary data collection, which will be obtained directly from the study objectives, will be a questionnaire on the subject. Data will be gathered online using a survey form. All of the exam questions will be in English. The survey will be made available online to the participants. Secondary data will be gathered from pertinent literature research and publications (Noor, 2008). The survey questions will be evaluated using the Likert Scale. This poll will make use of a Likert

S t a r b u c k s N e w M a r k e t R e s e a r c h | 5 scale, with six answers denoting strong agreement and one denoting stark dissent. An absolute response was eliminated by using the Likert Scale. Instrumentation Primary data will be gathered through a questionnaire. The questionnaire will include 22 question items and six variables. The questionnaire assesses the relationships between the following components of coffee: environment, employee attitudes, communication system, customer satisfaction, and coffee quality. These items will be scored using the Likert-Scale, which has a range from strongly agree (6) to disagree vehemently (13). Demographic factors like age and gender are also included in the model as a control variable. Analysis Approach . For the analysis of this study, structural equation modeling will be employed to account for the conceptual model, which comprises of dependent, intervening, and independent variables. The researcher will be able to analyze how numerous components interact by using structural equation modeling (Kumar, 2018). This method will be used to assess the link between Starbucks café characteristics such as customer satisfaction, loyalty, coffee quality, communication system, employee attitude, and environment. Descriptive Statistics . Descriptive statistics will be used to summarize the data set that may be utilized to represent the sample or the entire population (Kumar, 2018). This will be done to clarify and determine what the usual questionnaire response was for each indicator item. Model Development on Theory

S t a r b u c k s N e w M a r k e t R e s e a r c h | 6 Normality Test: Data normality will be satisfied to process the data. Testing the normality will be carried out to observe the value of kurtosis and Skewness of the data in the study. Outlier Test : When using parametric statistics, the outlier test is essential. The term "outlier" describes data that deviates greatly from the norm (Dul & Hak, 2007). They are data or observations that stand out from other observations in the data collection due to their distinctive qualities and extremes in both the individual and group variables. Multivariate outliers will be used to study the outliers. The goodness of fit will be used to measure the covariance matrix accuracy. Of goodness fit index Fit ranges 0-1 with more significant samples increasing its value. Conventionally, the cut-off index value of 90% or 0.9 is recommended (Dul & Hak, 2007). Nonetheless, when the size of the sample is small, the cut-off value is 0.95 Analysis A topic termed "global leadership" was covered in class. For effective global leadership, a global mindset is required. The ability to incorporate this diversity to achieve organizational goals and an openness to and awareness of the variation available in various markets and cultures define this mindset. Understanding Chinese culture and making the required adjustments while maintaining Starbucks' current, Western brand were essential to the company's China expansion strategy. Despite initial difficulties, they eventually overcame cultural disparities and were successful in establishing a coffee culture in China. However, Starbucks' poor success in Australia may be due to how they view the global market, which is a different concept from what we discussed in class. If a market exists for the new

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

S t a r b u c k s N e w M a r k e t R e s e a r c h | 7 product, it is determined at the "basic needs potential" stage of the first screening procedure. When the first Italian and Greek immigrants came in Australia in the middle of the nineteenth century, the nation already had a booming café industry (Turner,2018). Before Starbucks was established in the United States, Australians were totally immersed in their own coffee culture. As a result, Starbucks might not have been essential for the market. During the fifth screening step, referred to as competitive considerations, a company must assess its competitors in a certain market. Due to their familiarity and affordable costs, small coffee shops in Australia attracted customers. Another well-known American coffee producer with a presence in Australia is Gloria Jean's Coffees. After being established in Chicago, the first Gloria Jean's coffee shop opened in Sydney, Australia, in 1996. By 2020, they hope to open more than 400 locations throughout every Australian state. Its popularity may be attributed to the wide variety of specialty drinks it provides as well as the fact that it was able to successfully blend in with Australia's coffee culture, something Starbucks was unable to do. Meanwhile, Starbucks is still making an effort. Their new approach is to interact with tourists and foreign guests who travel to Australia in search of a familiar experience. After a number of new outlets were built throughout time, Starbucks presently has at least 39 locations in the Brisbane, Melbourne, Gold Coast, and Sydney regions (Turner,2018). Conclusion Starbucks is a significant player in the coffee market and currently has more than 80 stores worldwide. Starbucks claims that following the [COVID-19] pandemic, its two biggest markets, the United States and China, are rebounding more quickly than expected (Lucas, 2022). They opened 480 new stores in the fourth fiscal quarter of 2020, increasing the total number of outlets

S t a r b u c k s N e w M a r k e t R e s e a r c h | 8 globally to 32,660. In general, Starbucks operates in a flourishing industry, and the company will continue to thrive internationally in the next years. With a third location, smartphone ordering, a reward program, and a barista experience, Starbucks will open. Starbucks needs to maintain consistency in the new market to keep customers' confidence. References About us: Starbucks Coffee Company . About Us: Starbucks Coffee Company. (n.d.). Retrieved December 9, 2022, from https://www.starbucks.com/about-us/company-information/starbucks-company-timeline?

S t a r b u c k s N e w M a r k e t R e s e a r c h | 9 source=content_type%3Areact%7Cfirst_level_url%3Aarticle%7Csection %3Amain_content%7Cbutton%3Abody_link Again, M., Campbell, M. J., Cooper, C. L., & Lancaster, G. A. (2010). What is a pilot or feasibility study? A review of current practice and editorial policy. BMC medical research methodology , 10 (1), 1-7. Ashley_MTurner. (2018, July 25). Why there are almost no Starbucks in Australia . CNBC. Retrieved December 9, 2022, from http://www.cnbc.com/2018/07/20/starbucks-australia- coffee-failure.html Dul, J., & Hak, T. (2007). Case study methodology in business research . Routledge. H. P. • S. (2022, September 13). Reimagining the third place: How Starbucks is evolving its store experience . Starbucks Stories. Retrieved December 8, 2022, from https://stories.starbucks.com/stories/2022/reimagining-the-third-place-how-starbucks-is- evolving-its-store-experience/ Kumar, R. (2018). Research methodology: A step-by-step guide for beginners . Sage. Noor, K. B. M. (2008). Case study: A strategic research methodology. American journal of applied sciences , 5 (11), 1602-1604. The New York Times. (2007, July 15). Starbucks closes coffeehouse in Beijing's Forbidden City (published 2007) . The New York Times. Retrieved December 9, 2022, from http://www.nytimes.com/2007/07/15/world/americas/15iht-starbucks.4.6664994.html

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Final Report

Related Documents