AN INVESTIGATION INTO THE IMPACT OF MARKET RESEARCH: A CASE STUDY OF STARBUCKS UK

 1 An analysis of trends in the market research techniques used by Starbucks UK in the past 5 years
for the Coffee Industry in the UK
Chapter 1 Introduction
1.1 Background of the study
As per the research on the consumer markets in UK greatest potential for growth opportunity in
the organized retail sector is in the food and beverage sector. It's projected that food and beverage
retailing will grow at 9.2 percent over the next five years against a total GDP growth rate of around 7
percent.
An important factor to be considered is the changing pattern of spending by the British consumer.
There is growth in the disposable incomes and as a result the markets are changing fast and are leading to
more urbanization kind of lifestyles. UK as a market is more relevant because of the demographic
advantage it has over other economies. As a result here young working populations drive personal
consumption. The rise in coffee drinking is pan of the transition to more branded consumption in UK and
is led by the growth of branded coffee chains such as Starbucks.
1.2 Objectives:
1) To identify and evaluate the techniques that Starbucks has developed in the UK coffee market in
the UK during the last five years.
2) To create awareness of the impact of the market research techniques that Starbucks UK has
developed to face their competitors in the coffee shop industry in the UK.
3) To show how market research has helped Starbucks UK to develop safety and durable
relationship with their costumers in the coffee shop industry in the UK.
4) To show how active has been the market research strategy in the coffee shop industry during the
past 5 years.
1.3 Research questions/hypotheses
1. What are the aims and objectives of market research? 
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2. What are the values of market research for businesses?
3. What are the market research techniques?
4. How Starbucks developed market research techniques in UK?
1.4 Rationale of the study
Market research is an essential strategic plan to understand and fully familiarise the traits and
behaviour of specific target market group. It involves systematic accumulations of relevant and current
information that will in turn assist in the comprehension and insights of consumers, and which will
ultimately uncover the sales opportunities and reduce the risks of unfavourable decisions for brand. It is
important that one obtains up-to-date research on their target market to stay connected with their
consumers, as time changes, so do customers’ needs and wants. Market research is aimed for the
marketing manager to gain fresh and deep insight of their customers and use it to create value and build
meaningful customer and brand loyalty. Market research is used to dissect the target market, products and
services, price and distribution to obtain a wide understanding of where one, as a company and a brand,
stand. Marketing research in Starbucks is gathered to interpret “the best target market, the size of the
target market, the attitudes, opinions, preferences and lifestyles of their markets”; this is fundamental
information for the sales of Company in the market place. To achieve a positive relationship between
customer, product and the price, Starbucks needs to have gathered information regarding, “reactions to
the physical price, value for money, price sensitivity and reactions to a premium price,” in making the
right price decision for target market.
1.5 Scope and limitations of the study
The scope of marketing research for Starbucks could cover the business problems relating to the
followings.
 Types of consumers that compromise present and potential markets
 Buying habits and pattern of consumption size and location of different markets, not only in UK
but also overseas
 The prospects for growth or construction for the current markets being served.
 New mantras of emerging segments
 Marketing and manufacturing capabilities of competitors
 Most suitable entry timing
 The current and prospective competitive position 
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 Chances of improvement of current channels
 Optimum use of promo- tools.
1.6 Summary
One of the most competitive industries in the world is the food and beverages companies. Being one of
the shopping and tourist capitals in the world, in UK has been markedly flourishing in the past decades
leading to the sprout of shops in the city of London. The coffee drinking culture in the said country has
been houses. In UK, particularly in London, there exist one important coffee company Starbucks.
Starbucks can be considered to have a strong competition in the market. Beginning with an understanding
of marketing research provides the reader the framework for full understanding of the Starbucks
marketing model as a whole. Marketing research is "the function that links the consumer, customer, and
public to the marketer through information — information used to identify and define marketing
opportunities and problems; generate,