Market Research Ashkan Saffari &Dohoon Park I. Define the Problem: A. What do you want/need to know? What Cafe do people prefer to go to, Tim’s or Starbucks? What factors affect their decisions? II. Compile and summarize your secondary data A. Include at least one article per person (secondary data) relating to the battle between your brands B. Use the article to support your research and results (this will help with survey questions) PART A : Compile and summarize your secondary data https://dailyhive.com/vancouver/koho-millennials-coffee-starbucks-tims Summary: Daily Hive asked the Canadian FinTech company KOHO to review the trend of millennial spending to see if the Canadian millennials would prefer Starbucks or Tim Hortons. In order to provide clear data, KOHO analyzed more than 1 million transactions carried out by tens of thousands of Canadians. As a result, Tim Hortons is a major coffee shop with 74 percent of Canadian millennials and the East Coast has a higher rate of going to Tim Hortons than the West Coast. https://medium.com/@sssaini/tim-hortons-vs-starbucks-the-power-of-brand-4cd4daf f144f Summary: In this article, the subject matter is how each of these companies; Starbucks and Tim Hortons establish themselves and appeal to their respective target market. It discusses various components including cup sizes, availability of stores, price comparison, example order, customizability, customer service, quality of product, Interior design and lighting, and social media presence. Briefly, the article emphasizes the differences and similarities based on the power of branding. Other secondary data: https://www.slideshare.net/AnkitBalyan2/comparative-strategic-analysis-of-tim-hort ons-and-starbucks https://www.thespec.com/opinion/editorials/2018/04/23/editorial-people-go-to-timhortons-starbucks-for-more-than-coffee.html PART B : III. Your Primary research: what the results of your survey said -YOU MUST SHOW AT LEAST THREE GRAPHS: Comparing your results – the MORE the better Data Analysis These two pie graphs are demographics that emphasize the respondent’s personal information. As can be seen, the age group between 13-18 covers 67.8% of the chart, and the gender ratio of male and female is very similar to each other. The cycle graph illustrates the number of coffee cups consumed by people. Since our respondents are commonly teenagers, the pattern shows approximately a cup for a day during school days. As can be seen from the title, this bar graph refers to places in which people are liable to go. Roughly 42 percent of surveyors vote for Tim Hortons. And a bit close behind is Starbucks with around 29 %. However, McCafé® has the lowest price but It placed in the fourth position. As regards the graph, people tend to drink a variety of coffee instead of regular americano every day therefore the companies who have the most various coffee beverages will win the game in the marketplace. According to the graph, the main reason people tend to drink coffee is due to the feeling of refreshing. The social occasion is the second rationale behind drinking coffee based on the graph’s data since coffee turned to a routine habit for many people and it got extremely normalized. The majority of people think the quality of the coffee is what makes them spend their money on specific cafes. This is an exceedingly useful and meaningful graph with excellent results. People do care about the coffee because they felt that quality coffee was the reason why customers decided to visit a shop. When they buy a cup of coffee, they mostly want to spend from $3 to $5. The reason why there are quite a lot of responses of willing to spend $9 or more is that shows there are many people who buy bread or other menus with coffee as much as those who drink only coffee. As can be seen, people mostly value the taste of the coffee and cleanliness of the store as being the possession of the highest rates. Following behind, respondents think the speed of service, coffee quality, variety, price, customer service and sales promotion have the superiority. Conclusion: According to the survey, we noticed a trend beginning to form as we looked over the initial results: “Quality coffee” was clearly the most popular answer for all questions related to coffee shop discovery, experience, and loyalty. Since teenagers were forming most of our respondents, results show most of them are willing to spend only around $4. Therefore Tim Horton’s gets the priority choice due to the lower price than Starbucks. Despite Starbucks being the world's most popular cafe, our results indicate youth usually prefer to go to Tim’s. The top comments below are showing the logic behind their coffee choice. Top Comments “Timmies cheap and does the job” “Starbucks for sitting in, Tim’s to go.” “Starbucks for a special occasion, usually Timmies” (Retrieved from secondary data) Recommendation for Tim Horton’s: There are many recommendations for Tim Horton’s. One of the recommendations is to train baristas or hire professional baristas and use high-quality beans to offer good quality coffee to their customers. That's because good quality coffee brings out the good taste and this is the crucial factor that affects consumers in deciding which coffee shop to go to. According to our recent survey, the quality of coffee is influencing consumers’ choices of a coffee shop to make their purchases. Another recommendation is to provide a good environment and positive customer service to consumers. By making interior design brighter such as adding lighting, peaceful playlist, etc. Like Starbucks, they could hang artworks on the walls. By providing great customer service and a clean and sophisticated environment, consumers can positively recognize the brand, and they will also want to do anything in clean surroundings rather than in a grimy environment. From our survey data, people respond that they are willing to drink coffee in a cafe where the customer service is fast and friendly and the environment is clean and enjoyable. Recommendation for Starbucks: There seems to be a couple of recommendations for Starbucks. One of the recommendations is to lower the price of their products. Since the majority of our respondents are teenagers, they do not have that much budget to pay a lot for a just cup of coffee. According to data, respondents prefer to go to Tim Horton’s. One of the reasons affecting their decisions is the price. Starbucks has a high-pricing policy in which people recognize it as a luxury brand. If Starbucks arranges the special price range for only students, it will boost their sales up, and will make them even more popular in the youth community. Another recommendation is to improve sales promotion. This is related to our first recommendation. The data indicates the price of the product and the sales promotion are quite essential factors such as giving coupons or discounts or even giveaways/free samples. Through this kind of promotion, Starbucks can exceedingly strengthen their presence in the coffee market, drawing attention from others and bringing them in and satisfying their original customer. Furthermore, creating various types of coffee beverages and adding desserts such as donuts is a great way to promote the sales. Based on the survey, many respondents answered that diversity in coffee flavour is important. We strongly suggest adding a variety of coffee beverages and dessert to the menu list. Link to our Survey: https://forms.gle/xPgQw4CuUcfqkkft7
