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StarbucksDeborah | Claudia | Jaime | JoanneMarianne | Weiguang
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Industry Overview
(Singapore)Retail sales by cafs -$1069 million in
2009Number of cafsincreased by 3% in
2009Market Leaders -Starbucks Coffee andCoffee Bean & Tea Leaf
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Brief OverviewWorlds leading coffeeretailer
64 outlets in Singapore
Beverages make up77% of revenue
Target segment -affluent, well-educatedyoung professionalsbetween the ages
25-44
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SWOT AnalysisS t r e n g t h s
Strong Brand Equit yProduct Innovation & Variety
Intimate ServiceStore Ambience
High Quality CoffeeConvenience
W e a k n e s s e sIneff icient Staff ing Plan
Limited Lounging SeatsCannibalization
O p p o r t u n i t i e sPricing Promotions
Increasing Appreciation for Coffee
T h r e a t sDilution to Brand ImageIncreased Compet ition
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Marketing Problem
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The Big Question.
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Our Aim
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Gen Y Patrons
Impression of Starbucks
ConvenientChill
ComfortableCosy
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Current Efforts
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Why do students
study at Starbucks?Data & Findings
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Research Methodology
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Demographics
82%
15%
Age of Students
< 1314-1617-1920-25> 25
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Demographics
47%
29%
5%
19%
How Long They Have Studied in Starbucks
< 6 months6 months-1 year1-2 years> 2 years
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Findings
Drink
Eat
Study
Relaxation
Socialize with friends
Take away
Others 3%
30%
62%
34%
62%
27%
89%
What do you do in Starbucks?
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Demographics
6%
69%
25%
Most of the time, I usual ly go to Starbucks (with)...
Alone2-4 people> 4 people
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Analysis & Interpretation
of Findings
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Findings
38%
62%
Do you study during peak hours?
Yes No
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Findings
The crowds do not distract me.
I do not fee l there is pressure to leave.
I am a paying customer!
Others 5
31
21
18
If yes, why do you continue studying during peak hours?
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Analysis & Interpretation
of Findings
Approach-avoidance conf lict
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Starbucks Habits
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Gen Y Patrons
Impression of Starbucks
ConvenientChill
ComfortableCosy
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Students Impression of
StarbucksComfortable
Convenient
Young Crowd
Friendly StaffConducive
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Reasons for Studying
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What Students Want
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Comfort
8.5 average
Most comfortable to study
Most comfortable
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Comfort
Seats studentswant
Will you study if
these seats areused throughout?
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Should Starbucks
Welcome Studying?
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Gen Y patrons say: No!67% strongly against
Makes Starbucks look cheap
Fast food restaurantsStarbucks becomessynonymous with studying
Assume that all outlets arepacked with students
54% end up leaving/order to-go
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Other Thoughts
Seat-hoggers areinconsiderate
Spoil the image
Disturb ambience
Starbucks is not a placefor studying
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Recommendations2-Pronged Approach
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Refreshing ExistingAssociations
Upscale
For Lounging
For Relaxation
White Collar Workers
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Weaken Link betweenStarbucks & Studying
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Strategies
Environmental Factors
PackagingMarketing Communications
Distribution
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Scenario One
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Scenario Two
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Comparison
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SchemaDisplay purposes
Starbucks menu
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Environmental
Magazines
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Environment: Table
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Before After
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EnvironmentalFurniture
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EnvironmentalPowerpoints
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Sensory Adaptationreduced sensiti vity to st imulation that results from
repeated presentations of that stimulation
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Environmental
Music
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Environmental
Aromas
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Change? Yes we can!
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Packaging
B i B k
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Bring Back
Personalization
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Vintage SleevesMugs with Est 1971
Vintage Posters
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MarketingCommunications
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MarComms Efforts
Back to BeansCampaign
Revisecommunicators
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Distribution
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Distribution
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Conclusion
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Q&A.
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