Beano’s Café Case Study
1. Based on segmentation variables, how is Beano’s Café now segmenting and targeting the coffee market?
Beano’s Café’s target market is said to be the young people. Since they chose to serve the young people, this means that their consumers are under the demographic segment. Demographic segment consists of segments that are based on variables such as age, generation, etc. This segment therefore applies to Beano’s Café since they target young people ranging from 18 – 25 years old.
Beano’s Café target their market by improving on their customer service. They did this by conducting surveys in order to find out what customers liked and disliked. The surveys showed that customers liked the café’s service,
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Similarly, they had the promotional beano’s point’s card wherein they pay 50 to 200 LE and they can use these anytime. Beano’s also had creative foam art, which made their coffee personalized and fun. They’re also the only local café that offered desserts, which were prepared by La Poire. Beano’s also had new special offers every so often. For example, in Dec 2009, they offered a special American coffee with chocolate fudge and at the beginning of 2010; they offered caramel macchiato with a muffin.
3. What changed first, the Beano’s customer or the Beano’s Café experience?
Beano’s Café experience changed first, not their customers. Beano’s Café started off as a new kind of café because they served different kinds of coffee compared to the ones the people were used to. They also noticed that more than half of their customers are the youth. Because of that, they want to expand their target market. They decided they want to get the attention of senior citizens as well.
From serving only the youth, they changed. Instead they decided to have mass marketing, wanting to attract both young and old. With their decision to expand their market, they decided to improve their marketing strategy by doing surveys, investing on the aspects what their customers think they need improvements on, etc. Beano’s Café experience changed for the
The survey questions mostly consisted of multiple choice questions, two open-ended questions, allowing written responses, and one qualitative response question. These questions were chosen to establish consumers differences and comparative perspective of Starbuck’s competitors, their daily usage of the social media platforms, the coffee shops visited frequently, and their opinions on consumers who frequent Starbucks. The survey contains one matrix/rating scale question ( Appendix I, Question 5) based on how important qualities are when choosing a coffee shop. Lastly, there were two demographic questions. The demographic questions are for a general understanding on consumers behavior based on age group and gender. For an overview of the survey, see appendix I.
Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world with over 16,000 stores in 50 countries. This report evaluates major internal and external factors affecting Starbucks using various analytical techniques. Based on the Starbucks brand in UK, it identifies suitable marketing strategies for Starbucks to expand its business in the UK market within the next two years. In line with the chosen marketing strategies, recommendations for the marketing mix are discussed.
Because of their substantial growth over two decades, they have spent a considerable amount of time defending their image. Their “clustering” strategy put many small coffee shops out of business and many consumers began to wonder if there really was a need
Conducting a survey was one of the ways to get in touch with our possible future clients and also buyers. We wanted to find out what do people think about our project, would it be successful or not. Our target were people over fifteen years old, because we asumed that children under fifteen don't drink coffee. We conducted the survey at Zagreb School of Economics and Management and in many bars in Zagreb.
Starbucks positions itself as a place college students can hang out, study, write term papers and meet people. A Starbucks appeal to this consumer directly through introducing technology as soon as it comes available, focusing on social networking and actively cultivating a “cool” image. The young adult audience grows 4.6 percent each year (O’ Farrell).” However, the majority of the advertising is catered to Adults around the ages of 25 to 40. Adults seem to prefer a pick me up first thing in the morning on their way to work. Most Starbucks today have a drive thru to make it faster to grab and go.
The original idea for the Starbucks format came from the 1980´s when the company´s director if marketing, Howard Schultz, came back from a trip to Italy enchanted with the Italian coffeehouse experience, the idea was to sell the company´s own premium roasted coffee and freshly brewed espresso-style coffee beverages, along with a variety of pastries, coffee accessories, teas, and other products in a tastefully designed coffeehouse setting. The focus was to sell a “third place experience”.
People love to drink coffee. Coffee shops, independently owned or chains are every corner. Statistics show that people are taking more coffee every day. It is a very profitable business.
Starbucks’ lead in the specialty coffee industry exemplifies the result of deftly executing a well-planned business strategy. Moreover, Starbucks is well positioned for what is expected to be a continuing rise in the popularity of specialty coffee products. The question before Starbucks’ leadership, however, is what avenues will lead to Starbucks’ goal of remaining true to its core, the highest quality coffee products while providing a “total coffee experience” for its customers?
As a well-established coffee retailer and over 35 years of success, Starbucks is at the maturity stage in the product life cycle. It is in this stage that Starbucks needs to shift gears and focus on marketing program modifications by increasing the number of customers and customer visits (Kotler, 2009, pg. 185). While improving service will attract first-time customers and retain current ones, further marketing modifications will need to be made if it wants to continue to grow. More advertising, distribution, sales promotions, and personal selling are a few of the ways to modify the marketing program.
The market research team has also discovered that Starbucks’ customer base is evolving. The customers tend to be younger and less well educated. Regardless of this insight, customer behavior remains the same. According to Figure A in the case study, the typical customer visits just five times a month. I believe this is in part due to Starbucks’ inability to meet customer expectations and increase satisfaction. In order for the company to increase the frequency of customer visits, customer satisfaction must improve. Thus, the ideal, most profitable consumer for Starbucks is one who is a
In conclusion, the Broadway Café faces a strong buying power and rivalry among competitors due to the large volume of shops offering the same products and services. The threat of new substitute products and alternatives is also high for the same reasons for buyer power. The Café also faces the threat of new entrants due to the lack of insignificant entry barriers. One upside is the relatively weak supplier power. The coffee industry is huge as stated above and vendors are more than ample. With this information we can conceive our business focus. The Broadway Café is best suit for a focused differentiation strategy. We plan to achieve
Customers: The demographics of a usual Starbucks consumer have altered extremely in the new years. In the Starbucks case documents innovative consumers of Starbucks are younger, a smaller amount knowledgeable, low pay, less frequent visited to the coffeehouse and had very dissimilar insights. The general outlook of Starbucks is very short on 25% by novel consumers while the consistent consumers stood in 44%.Although numerous features subjective customer satisfaction, generally service and quickness of service were recognized as the greatest significant; a rapid glimpse at Starbucks 's fresh customer satisfaction reveals that consumers did in
Starbucks provide a large in store seating with free wi fi and a take-out service which only a few retail shops offer. The main target customers for Starbucks are office workers, with enough income, whom are able to afford the high prices of their products (Gaudio, 2003). The company has worked hard to establish itself as the brand leader with its branding as the most frequently drank coffee and noticeable brand logo. Introduction of promotions like the Starbucks Card, allows a more convenient way for a person to pay for your drinks and earn rewards for your purchase (Starbucks Coffee Company, 2011). Furthermore, in‐store promotions accompanied by new products and amenities like free internet use are all strategies that Starbucks use to maintain their position in the market (Vasudha, 2011).
There are some segmentation for their target market, such as young customer, young executive, executive and expatriate.
The CEO (Chief Executive Officer), Howard Schultz pointed that the main reason from the decline of “Starbucks Experience” was that the number of Starbucks shops increased sharply from only 1,000 to 13,000 within ten years. Other people considered their brand has been commercialized, and the customers hadn’t had enough enthusiasms to appreciate every moment of their coffee any longer. He suggested that Starbucks should re-find its origin. Nevertheless, his advice apparently was opposite to the