Market Research Starbucks 2 07-09 PDF

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Marketing research about StarBucks...

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On the bright side, the economy in developing countries is growing rapidly. Cambodia would be a good indication of this fact. Cambodia‟s GDP shows how well the country is performing economically (Chhean n.d.). Most importantly, Cambodia‟s economy had bloomed significantly from 3.7 billion US dollars to 15.7 billion US dollars from 2001 to 2013 (Chhean n.d.). In addition, the GDP of Cambodia had been estimated to grow around 7% annually since 2012 (Chhean n.d.). It is expected to grow even further in 2019 (Chhean n.d.). In a nutshell, an emerging middle class and a decline in unemployment rate create opportunities for Starbucks to increase their revenue in Southeast Asia (Starbucks Corporation 2017).

Technological Factors Besides that, there are also technology factors that affect Starbucks in a few ways. All of us might slot Starbucks into a food and beverage company, but not all of us are aware that Starbucks is slowly evolving into a technology company (Elgan 2014). As we know, big players like Samsung and Apple are trying very hard to innovate on wireless charging but it still ends up in the mud (Elgan 2014). So, Starbucks wants to create demand for wireless charging (Elgan 2014). Starbucks has come out with a plan to install 100000 wireless chargers in 7500 of the stores they operate in (Elgan 2014). Although a lot of existing mobile phones can‟t support the wireless charging technology, Starbucks is making this idea big and loud (Elgan 2014). Starbucks wants to make wireless charging well-known so that companies such as Apple and Samsung are able to innovate and improve at a quicker pace (Elgan 2014). The second reason why I said that Starbucks is slowly evolving into a technology company is because Starbucks is improving the speed of their WI-FI hotspot (Elgan 2014). Starbucks is on the path of being one of the best WI-FI hotspot providers (Elgan 2014). The Gen-Y and Gen-Z now are tech savvy as we know it, we all need faster and better internet connections regardless where we are, even when we are having a cup of hot coffee inside Starbucks outlets. This has pushed Starbucks to partner with Google to bring in fast WI-FI, Google WI-FI is claimed to be 10 times faster than the old AT&T WI-FI in the US (Elgan 2014). Certainly, it is not coffee that defines Starbucks, any stores or cafes sell coffee, technology is what makes Starbucks successful today (Elgan 2014).

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Moreover, another technological factor that has contributed to the Starbucks today would be the Clover coffee machine (Elgan 2014). The Clover coffee machine is an advanced brewing technology used by Starbucks (Starbucks Corporation 2017). It allows Starbucks to craft the perfect coffee aroma based on customer preferences (Starbucks Corporation 2017). These are devices that can communicate with other devices (Elgan 2014). The Clover coffee machines in Starbucks stores communicate and report the performance of the machines through cloud (Elgan 2014). Another technology advancement that I would like to mention about Starbucks would be their Starbucks app for both Android and IOS users. Customers can order their coffee through the Starbucks app (Starbucks Corporation 2017). The customer can then go to the selected Starbucks store and collect their coffee (Starbucks Corporation 2017). It eases the customers as they can collect and then pay for their coffee with the available balance inside their Starbucks app (Starbucks Corporation 2017). Besides that, customers can also use the Starbucks app to check and influence what songs Starbucks are playing inside the stores (Starbucks Corporation 2017). All the customers need to do is just to save the songs and add it to their song waiting list (Starbucks Corporation 2017). Most importantly, customers can earn loyalty points and redeem rewards by using the Starbucks app (Starbucks Corporation 2017). Customers can redeem the rewards either through their Starbucks app or their Starbucks loyalty card (Starbucks Corporation 2017).

Cultural Factors Last but not least, I want to discuss about the cultural factors affecting Starbucks. The coffee culture and middle class are growing rapidly, especially in Southeast Asia (Starbucks Corporation 2017). Vietnam is the second largest exporter of coffee today (Pilot Guides 2017). People in Vietnam have a local habit of drinking at least one cup of coffee every morning (Pilot Guides 2017). As for Malaysians, the educated middle class is expanding and they are the ones who are spreading the coffee culture in Malaysia (Pilot Guides 2017). Laos is also one of the countries that is experiencing a growing coffee culture (Pilot Guides 2017). Laos is one of the world‟s most unique coffee supplier (Pilot Guides 2017). There are also more western style coffee shops cafes coming up in the main cities as well (Pilot Guides 2017). The coffee cafes in

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the main city believe that every good cup of coffee should be served with a slice of delicious cake (Pilot Guides 2017).

Reference List – Part A Chhean, S n.d., Cambodia Pest Analysis and Starbucks Internal Analysis, Academia, viewed 28 May

2017,

Dudovskiy, J 2017, Starbucks Segmentation, Targeting and Positioning – Targeting Premium Customers with Quality Products and Service, Research Methodology, viewed 29 May 2017,

Elgan, M 2014, Forget Coffee, Starbucks is a Tech Company, Computer World, viewed 29 May 2017, Haseeb 2017, Pestle Analysis of Starbucks, Marketing Dawn, viewed 28 May 2017,

Pest Analysis Contributor 2015, viewed 27 May 2017, Pilot Guides 2017, viewed 27 May 2017, < http://www.pilotguides.com/articles/southeast-asiancoffee-culture/> Smithson, N 2017, Starbucks Coffee PESTLE Analysis and Recommendations, Panmore Institute, viewed 29 May 2017, < http://panmore.com/starbucks-coffee-pestel-pestleanalysis-recommendations > Starbucks Corporation 2017, viewed 27 May 2017,

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