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Starbucks / Dunkin’ Donuts research
Wednesday, June 13, 2012
| Presented by Alex Hockley and Molly Fox
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FH
fox and hockley
Executive Summary:
These days there are a significant amount of coffee establishments
located in Center City, Philadelphia. Out of all of them two remain most
popular among students; Starbucks and Dunkin Donuts. At F+H we are
aiming to uncover what it is that makes an avid coffee drinker choose
one of the establishments over another.
Wednesday, June 13, 2012
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fox and hockley
Industry Analysis:
After surging over the past decade, in 2009 coffee/fast food industries
experienced a major slowdown due to the economic downturn and partially to
changing consumer tastes. Despite this, it is an industry that is consistently
profitable. In total, it takes around 1/3 of the American dollar spent on food.
While coffee/fast food establishments will have to adjust to consumers’ growing
demand for healthier items, it is expected to increase over 5% in the next year
and make up four percent of the gross domestic product (GDP). Statistics show
that over 77% of Americans consume some form of coffee beverage.
Wednesday, June 13, 2012
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fox and hockley
S.W.O.T. Analysis:
Strengths
-profitable organizations with well known names and product lines
-friendly, well trained staff
-customers have habits and routines and go to SB/DD frequently
-reputation for creatively developing new products
-strong financial foundations
-knowledge based
-globalized
-widespread and consistent
Weaknesses
-in some places there are SB or DD stores within a very short
distance which can make them susceptible in a down economy
-every increasing number of competitors in a growing market
-self cannibalization
-cross functional market
-expensive (SB)
Opportunities
Threats
-new products and services (Fair Trade products) can be offered
-expansion into retail operations
-technological advances
-brand extension
-emerging international markets
-the prices of coffee and dairy products are rising, may lower profit margins
-due to state of economy people have become more cautious about spending
money on non essential items
-US market saturation
-negative publicity from poorly treated farmers in supplying countries
-consumer trends toward more healthy ways and away from caffeine
-alienation of younger, domestic market segments
Wednesday, June 13, 2012
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fox and hockley
Hypothesis, Purpose:
Throughout our research process we aimed to solve one specific problem. It was hopeful
that the research undertaken would give us insight into whether or not avid coffee
drinkers preferred consuming Dunkin Donuts or Starbucks coffee. We also wanted to
discover the reasoning behind the consumer’s decisions to purchase coffee at one
establishment over another.
Due to the fact that we were asking which and why consumers may choose Starbucks over
Dunkin Donuts or vice versa, one main justification for doing so would be to increase profits
and market share. If for example, Dunkin Donuts is proven to be a favorite over Starbucks
then our research tells us that something has to be done for the less popular chain to
revamp themselves. Whether it be lowering prices, improving customer service,
implementing more locations, offering more items, or improving upon their taste, necessary
measure must be taken.
Wednesday, June 13, 2012
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fox and hockley
Research Objectives:
By doing our research we would like to find out why consumers
choose Dunkin Donuts or Starbucks. We are also wondering if age
or major has anything to do with their choice of establishment. We
would like to know when consumers drink coffee and if the time of
day determines when they purchase coffee outside their homes.
Wednesday, June 13, 2012
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fox and hockley
Limitations:
In the process of gathering research and undertaking the questionnaire, we
discovered many limitations. One of the most significant was the time constraint.
Having just 3 or so weeks to gather all of our information put a limit on everything
else. Had we had more time, our sample size could have increased by a significant
amount. With a larger sample size, we could have had more accurate and solid
results. Coinciding with the issue of time also comes our limited location. With more
time we could have reached out to a larger audience as opposed to just 20 people
in the Center City area. Another obvious limitation to our study was our overall
lack of knowledge and experience on the subject. Having never conducted market
research of any kind, both of us were slightly hindered. Perhaps with further
knowledge we could have created a different and better questionnaire for example.
Many more things could have been accomplished if we were more familiar and
educated on the subject, had more time, and a larger sample size.
Wednesday, June 13, 2012
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fox and hockley
Methodology:
1. Qualitative (open-ended questions
and
chart)
-If Starbucks lowers their price would you choose them over Dunkin Donuts? Why or why not?
-How many cups do you drink in the morning, noon, and night?
-How often do you buy coffee outside your home?
-What is the average price you pay for a cup of coffee?
2. Quantitative (classifiers)
-Are you and avid coffee drinker?
-Male/Female?
-Age?
-Where do you live?
-What is you major?
-Do you drink coffee every day?
-Which do you prefer, DD or SB?
-Do you believe that DD and SB have the same quality coffee?
3. Special Criteria set for respondents
-We asked “are you a coffee drinker?” ( coffee drinker can be defined as drinking an 8 oz. cup of
coffee at least 5 times a week If respondents answered no, they were to hand in questionnaire.
Wednesday, June 13, 2012
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fox and hockley
Sample Plan, Questionnaire:
For our sample plan the most important aspect was that we tested coffee
drinkers only. We also wanted to make sure that the respondents were
AIPH students. The purpose for that was to give them a chance of being on
a limited budget. Due to time constraints we were limited to questioning 20
individuals only.
Before the final questionnaire was handed out, we came up with a prequestionnaire as a tester of sorts. On our pre-test we asked “are you a coffee
drinker?”. We shortly found out that respondents weren’t sure what exactly
classified them as “coffee drinkers.” To fix this, on our final questionnaire we
defined this as drinking an 8 oz. cup at least 5 times a week. In addition, we
added a chart to gain further insight into respondents habits, and a qualitative
open ended question.
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Data Analysis:
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Data Analysis:
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Data Analysis:
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Data Analysis:
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Data Analysis:
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Data Analysis:
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Data Analysis:
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Data Analysis:
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Data Analysis:
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Data Analysis:
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fox and hockley
Data Analysis:
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Data Analysis:
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Data Analysis:
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Cross Tab:
Wednesday, June 13, 2012
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fox and hockley
Recommendations, Future Research:
In the future if we were to do further research it would benefit us to conduct a
focus group of coffee drinkers. In addition to focus groups, we would like to be
able to reach out to a broader audience in places other than Philadelphia/
Center City. If possible we would also like to gain more insight into the
companies (SB/DD) themselves. This would provide us with information
necessary to perhaps provide further recommendations. According to our
results, it’s recommended that Starbucks take measures to increase their sales.
One obvious way would be to lower their prices.
Wednesday, June 13, 2012
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fox and hockley
Wednesday, June 13, 2012