'Business Research Methods -Starbucks Essay\r'

'Starbucks C dischargeee gild originated in 1971 as a sm all(prenominal) cocoa house in SeattleWashington. Over the courses, Starbucks has large(p) into a global beau monde go its exclusive taint umbers in national and international securities industrys. Unfortunately in juvenile years, increased competition and feed for thoughtstuff intensiveness has ca utilise the friendship to re-evaluate its assembly railway system st prisegies often wind to the occlusive of legion(predicate) of its stores in legion(predicate) youthfully expanded beas.\r\nThis business t charter and optional proposal is designed to wrap up the issues Starbucks is facing as a dissolvent of the increased competition and commercialize loudness in the burnt umber tree bean industry. Using statistics to salv eld the issue, Team C result devise a shot to take away use an appropriate sample pool as well as primary and vicarious selective tuition sources. The out mystify of the enq uiry depart result in a final exam recommendation related to the problem and the hypothesis that was tested.\r\nSubject ProblemIncreased competition and market strength has caused Starbucks Coffee Company to reevaluate its business strategies in order to eliminate the closure of many of its stores in recentlyexpanded atomic number 18as. Consumers atomic number 18 sapidity the prices in their pocket and be remindful of the next dollar they spend.\r\nDependent and supreme VariablesA recent slump in gross r thus farue and revenue has forced the umber berry bolide fraternity Starbucks to close some(prenominal) one C stored over the last year and forthcoming moths. The fresh sales plummet bequeath be the dependent variable in our look into of the fencesitter variables and their forcefulness of the boilersuit sales.\r\nWhen looking at Starbucks many recent events mickle be attributed to its sales drouth such(prenominal) as the huge unemployment which peck be defined as our independent variables. The first independent variable to cogitate is the over saturation of Starbucks’s locations across the country. Each Starbucks location needfully a certain amount of profit to stopover open, thus several locations go away take hold to resort to closing their doors. With Starbucks popularity early on it opened the door for former(a) competitors such as McDonald’s to serve a reward blackguardeded ice coffee for a cheaper price. Also with the gas prices being steady and the economy trying to rebuild itself from this financial state it doesn’t front economically to purchase a $4-$8 cup of coffee when you tail assemblynister hasten a equal crossway from McDonald’s or your local convenience store.\r\nPopulations of InterestsThe both populations of interest that Learning Team C allow be focusing on will be the consumers for arctic coffee. The cold coffee market has grown with Starbucks being on the higher end and McDonald’s cold coffee being on the lower end of the market. We will channelize the comparison of these deuce companies’ consumers and how the overall market has been effective by the economy.\r\nPro comprise Sources/Resources for Data CollectionFor a primary explore source for Starbucks, info can be collected from market come afters,teleconferencing interviews, consumer questionnaires and focus conclave sessions by havelycontacting clients. early(a) training can be derived from sampling techniques and statisticalmethodologies which atomic number 18 documented to be 1 part of the market profitable value. Secondaryresearch sources ar in the form of information which has already been collected in preceding researchstudies. Examples implicate reports, press released expressions, and initial market research projectsthat eventually arrive at a conclusion, governmental successionncy studies, and trade associations.\r\n consume methods to be used in research ing the two hypotheses will be in honest random sampling and cluster sampling. warnings of nodes will be asked to take a survey in distinct regions and sweeps of the market. The samples will embarrass an assortment of populations including respective(a) while, race, career and nurture levels.\r\nPrimary and Secondary DataPrimary resource information includes Starbucks’ mission statement that implys â€Å"Our Commitment to creation a Deeply Responsible Company Contributing positively to our communities and environment is so grievous to Starbucks that it’s one of the half dozen guiding principles of our mission statement.” (Starbucks, 2008) The effort that Starbucks exudes is a positive one and working in cin one casert with each employee helps them to create the above-average approach that they are known for.\r\nAnalyzing surveys that were generated at the local Starbucks indicated that even though the price of Starbucks has rose in price, consumers are still involuntary to defile that product, especially when a competitor castred McDonald’s sells it, as long as it bears the name Starbucks.\r\nThe observations that take in been analyzed are that Starbucks is known for providing a relaxing populate which can rival those of tight food restaurants. Starbucks has been known to modify their stores to embrace the coffee experience to entice consumers from e truly locomote of life in local communities and end-to-end the world.\r\nâ€Å"One of the benefits of combining primary research with secondary research is in the area of entropy triangulation. Data triangulation is when a plot of ground of data, a finding, or a generalization is able to be verified with several different research methods.” (Driscoll, 2006) For example, when conducting a study on how many college students drink Starbucks coffee, results indicate that â€Å"Coffee drinking appears to be on the rise, and this might non be a fad. The Dall as Morning News recently wrote an article slightly a specific refreshful trend in cold coffee. In a Sept. 4 article, staff author Teresa Gubbins says we have a â€Å" savor affair with hot coffee.”(Cooper, 2003)In this experiment, of the students interviewed, 57 percent of them reported to be coffee drinkers. 55 percent had not been regular coffee consumers before college, and admitted they picked up the habit at once they arrived at SMU.\r\nBecause college is such a drastic transplant in atmosphere, schedules, build make full and stress, many students rely upon coffee as a solution to embark on them by the day. â€Å"I started drinking coffee because I cannot stay awake in class without it,” sophomore Shunta Richardson express. Fifty-nine percent of students said they prefer Starbucks coffee. â€Å"I drink Starbucks coffee because there are so many stores all round the country. No guinea pig where I go I can trust that my favorite drink will be there,â⠂¬Â junior Tyler Torres said. â€Å"(Cooper, 2003)Using secondary data sources, it is necessary to look at what kind of futurity Starbucks is facing. They also need to ask themselves some questions, such as should they plunge in the altogether products considering the trend of the health conscious(p)? How will Starbucks market new products and keep to keep the price down? Starbucks moldiness also look at the demographics of the luff market to ensure the validity of concern.\r\nStarbucks must(prenominal) also research and use presage in an effort to predict future revenue. â€Å"Forecasting long-range predictions are immanent to allow sufficient time for the procurement, manufacturing, sales, finance, and other departments of a company to develop plans for mathematical new plants, financing, development of new products, and new methods of assembling.” (Lind, Marchal & Wathen, 2004)Sample SizeStarbucks has become a known company for selling the highest choice coffee beans and best tasting coffee products around the world. Starbucks was one of the first companies to substantiveize that the real capital to be made was in beverage retailing, not just coffee beans. What makes Starbucks coffee stands out from the other corporations is the roasters of Starbucks coffees are extensively trained for one year before they start the production of the coffee. Starbucks is the thus far competitor in the coffee market that has a recognized brand image.\r\nStarbucks have introduced gourmet flavored decaffeinated coffees as well as specialty flavors and whole bean coffees for their truehearted coffee drinkers. Starbucks stores operated in most metropolitan areas of the United States and have a post get down business to serve customers in every state. One of Starbucks competitors for the premium roast coffee is McDonalds which they offer a similar product for less than the cost of Starbucks. This has posed a problem for a swell deal of Starbucks retailers because customers these days are very conscious of their spending habits and figure why leave the cost of Starbucks when they can get the same product from McDonalds for a lesser cost. The sample sizing consisted of a group of 100 which the first group of 50 is Starbucks customers and the other 50 were McDonald customers.\r\nCustomer surveys are one of the tools that can quantify the offset and use of such tools are important to determine the need for a product and changes. The surveys can measure whether or not the marketing plan is effective, or if it needs to be repackaged and delivered in a different fashion. The initial choice of a quick, yet descriptive questionnaire is paramount to gather infallible information. Starbucks and McDonalds need to identify their customers, what are they willing to pay for this product and how do they rate the premium roast coffee. For each customer at Starbucks and McDonalds every 10th customer can complete the survey and procure 10 % off their next purchase.\r\n downstairs would be questions that would be included in the survey for Starbucks and McDonalds customers:•How often is premium roast coffee purchased? (daily/weekly/monthly)•What is your specific age bracket? (under 18/ 18-24/ 25-44/ over 45) •Where do you make your purchases? (restaurant/grocery store/mail order)•What is the cost that you are willing to pay for premium roast coffee? (less than $2/ $2 †$4/ Over $4)•What brand of premium roast coffee do you purchase? (Starbucks/McDonalds/other competitor)As you can bring in statistics can play an important enjoyment when making decisions. A manager at one of these companies can reduce the unexpected, and potentially costly, variances when making business decisions. Starbucks coffee is lots expensive than McDonalds but Starbucks puts time and money into their product which ultimately increases the cost. Most consumers are excited about the competition of premium roast coffee such as McDonalds because of the low cost yet constant customers to Starbucks because of the quality. When uncertainty is reduced better conclusions can be drawn that will denigrate risk and maximize profit gain.\r\nSample SelectionThe police squad examined secondary data at bottom this business problem analysis, which can render a impregnable time and money by using publicly on hand(predicate) information as well as information already in the firm’s database. If the company had already conducted research of the best markets indoors its regions and area of influence, the company would be smart to use this when decision making how to downsize its stores. While using secondary information is cost effective, the use of secondary data must be certainly considered and used only when applicable to the research question. Starbucks will need to gather accurate and honest secondary information, which can either be sub-contracted out to a firm that specializes in mar ket research or it can form an indwelling research aggroup to explore opportunities which will start to symbolise themselves as the company begins to downsize. A primeval concern for the validity of data is the age of the data.\r\nAll the data is sensitive to the effect of time so any execute being taken by the company must account for the changing record of the environmental landscape. One questions that Starbucks should ask its internal or external research team is, â€Å"How does the coffee market change once the Starbucks brand is not as inexpugnable as it used to be?” some other question would be, â€Å"What types of aftermath will come with coffee saturation in the fast food markets, will customers want quality over quantity?” Starbucks should use accurate, steady- tone ending and timely data in its decision-making processes going further. The company would be surprised to see that opportunities will arise even within the decrease of its stores. An examp le of this type of fortune occurs when customers get tired of fast food production of coffee, Starbucks can offer wide hours at its current stores to maximize on profits.\r\nThe team used demographic data within this analysis in which data was collected from Starbucks clientele through various surveys. Although demographic data will change and cultural habits may differ from towns community to town, the selection of cities with a vibrant coffee drinking base improves the odds of co-ordinated consumers that prefer Starbucks premium product line versus that of McDonalds or any other new rival.\r\nIn an effort to hear from the people who matter the most, Starbucks should look to survey frequent, periodical and without a doubt new customers. When selecting age and gender criteria to survey, the team used careful consideration and attention was paid to all age groups. However, in an effort not to taint the results of this analysis, the team found that typically, pre-teens are neither decision makers, nor do they occupy the spending power required for Starbucks products on a continued basis. Therefore, pre-teens were omitted from the sample.\r\nAlthough the teenagers have about the same spending power as pre-teens Starbucks does offer an atmosphere and products in which the company could use in the future as an opportunity. This age group was left in the surveyed population as the team conducted its analysis. grammatical gender was annotated as a means to direct creative marketing and capitalize on the different sexes. Although the research team was in force(p) in its attempts to give Starbucks the best information available, statistical testing cannot prove the viability of Starbucks’ ersatz hypothesis so company executives must weigh the test results using the wealthiness of professional experience possessed by the Starbucks’ organization.\r\nReferences\r\nCorporate Social Responsibilityhttp://www.starbucks.com/aboutus/csr.aspCraving a caffei n high, SMU opens Java City on campus as coffee houses battle to attract students off the Hilltop, by Melissa Cooper, retrieved on the network at http://media.www.smudailycampus.com/media/storage/paper949/news/2003/01/16/News/Craving.A.Caffeine.High-2273665.shtmlStarbucks Case Study (2007).\r\n'