Starbucks is one of the few coffee shop businesses that, owing to its premium brand status, enjoys a high degree of customer loyalty.
Would you buy a house in a neighborhood without checking out the schools, crime rate, or housing market?
Would you open a restaurant if you knew nothing about the location, the traffic around it, or the prospective customers?
You can be sure that if you wanted to open a business, no banker will loan you money without you having done proper, thorough market research. These are the most common, yet often most expensive types of market research.
Surveys and focus groups are primary research methods, since they are conducted from scratch. Most market research that small businesses need is secondary, that is, research that has already been conducted, published, and available to the public. Often, secondary research can be found in libraries, online, or through other published sources.
In this post, we will discuss how someone starting a business can do market research without breaking the budget. Decide on the Information You Need Tom Johnson has decided to fulfill his dream of starting a comedy club.
Tom needs to ask himself several questions: What type of customers am I catering to? What locations are most convenient for attracting those customers? What are the traffic patterns in those locations?
Research Proposal for Starbucks. Research Proposal for Starbucks November14, STR ? Research Proposal for Starbucks Strategic planning is the process of gathering information from stakeholders, market players, professional entity, and government agency. The purpose of gathering information is formulating a realistic and . Starbucks Coffee Company is a global coffee company and a coffeehouse chain headquartered in Washington, the US, and the company operates 18, retail stores in 60 countries (Starbucks Company Profile, , online). Transcript of Starbucks Research Analysis Through Secondary research our goals were to see if students at West Virginia University believe that Starbucks has the greatest coffee quality as well if publicized celebrity usage of Starbucks products affects their purchasing habits.
What other comedy clubs and entertainment venues are in the area? What do they charge? How do they promote their businesses?
What types of promotions do my target customers respond to? Tom writes down all the questions he can think of that will help him analyze his market. Census Bureau The first place Tom turns to is the U.
Bureau of the Census. He looks at the Web site for demographics, and plugs in the ZIP codes for the locations he is considering, along with their adjacent ZIP codes. The Web site provides great insights into the number of households in the ZIP code, the age ranges, income levels, racial composition, and other demographic factors.
Tom then notices that the bureau also does an Economic Census of businesses every five years.
He finds the Web page for County Business Patterns and looks to see how many entertainment establishments are within the ZIP codes he is considering. He gets good insights about the number of establishments, their employee size, revenues, and payrolls.
Tom also finds other interesting facts from the Economic Census — particularly what percentage of revenues entertainment establishments typically spend on various categories: Local Library Tom realizes the Census Bureau has provided him with data that is summarized and aggregated.
He needs more information about specific competitors and business patterns in the areas he is considering. Tom does a search of all entertainment establishments in his locations of interest. Tom also searches through local newspapers of the past few weeks to see which entertainment venues were advertising, how often they were advertising, what they were offering in their ads, etc.
He then goes to the Yellow Pages to see if those prospective competitors advertise there as well. Chambers of Commerce Tom then contacts different chambers of commerce around his locations of interest. He finds out when their functions are and attends some of them.
The local chambers of commerce are great sources for identifying the similar businesses in his area, meeting their owners directly, and finding other businesses that can be help to Tom in opening his business.
For example, Tom could meet the general manager of a local movie theater, and might learn from him that the area seems to be pressed for customers, or is impacted by some local ordinance; Tom might also meet a banker or an attorney who specializes in helping new businesses start.Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium.
Secondary Research involves the use of data previously collected for other purposes. Information includes documents within the company such as annual reports, also the reports of the stockholders, media results and reviews are basic qualitative information available online and in other means, that can be accessed easily with more .
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Starbucks regularly tests products in stores. During , Starbucks tested the use of coconut milk as a non-dairy alternative to milk and cream in the brand's hand-crafted beverages.
The market research took place in Starbucks stores located Cleveland, Los Angeles, and Oregon. News, analysis, research, and events focused on business opportunities in Iran's post-sanctions economy.