Starbucks Midterm Report

Proposal Objective:
Customer satisfaction of quality and price of service at Starbucks compared to Pete’s Coffee.  

Plan of action:
Our plan of action will be to survey coffee consumers to determine if they prefer the taste and service of Starbucks to Pete’s Coffee.  Our objective will be to figure out if Starbucks has the opportunity to gain additional market share by changing their process, inventory, or selection of coffee.

Background:
As SFSU students we’ve notice that there numerous coffee shops on the campus grounds serving very similar products as the coffee served at Starbucks.  However, there are still a few students that are willing to travel off campus to purchase coffee from Starbucks.  The objective of this research is to understand the reason behind why students, on limited budgets, are willing to spend the extra money for Starbucks coffee versus their local school coffee.  We will research what students like to drink at Starbucks, the time they are willing to travel off campus for a Starbucks and how much more they are willing to pay for these drinks.  Once we’ve concluded our research, we will help the local campus cafés determine if there is a need for a wider selection of coffee drinks to increase their market share of SFSU students or if these cafés can increase profits by increasing price.

Preliminary Focus Group Results  
According to our preliminary focus group we have come across some reasons why people would rather go to Starbucks than other café shops. From our understanding many customers go to Starbucks not just as coffee drinkers, but as customers who are pleased with both service and quality of products offered. When asked about the quality of coffee Starbucks one respondent said,” The number of choices one has almost makes it impossible to be dissatisfied with whatever you get.”  Others added, “That even if you are dissatisfied with what you get that you can have them make it over or how you want it specifically.”... [continues]

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