Retail Industry Trends and Starbucks: A Business Development Report

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Current trends in retail industry
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Table of Contents
1.0 Introduction..............................................................................................................................2
1.1 Rationale of inquiry-based project...........................................................................................2
1.2 Aim of project...........................................................................................................................3
1.3 Objectives of project................................................................................................................3
2.0 Trend in retail industry.............................................................................................................4
2.1 Industry data and literature search..........................................................................................4
2.2 Write up of retail industry trends..............................................................................................4
3.0 Analysis of organisation...........................................................................................................6
3.1 Background of chosen organisation........................................................................................6
3.2 Primary data collection............................................................................................................6
3.3 Performance of organisation against industry trends............................................................12
4.0 Action plan (Timeline: Gantt chart)........................................................................................13
5.0 Recommendations.................................................................................................................14
6.0 Conclusion.............................................................................................................................15
References..................................................................................................................................16
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1.0 Introduction
It is a factor of sheer significance to conduct appropriate market analysis through which
management of an organisation is able to understand and evaluate about the market changes and
develop their functions accordingly. The study effectively put forth the analysis of current trends
that are followed within the chosen organisation, Starbucks. Rationale is taken into consideration
for conducting the enquiry based project. Furthermore, aim of conducting the research project is
also underpinned. Moreover, objectives of the project is also provided and highlighted about the
current trends that are being followed by Starbucks in current time.
1.1 Rationale of inquiry-based project
The study incorporates about the strategic analysis of Starbucks. It is necessary to conduct
evidence-based research on analysing the current trends that are followed in the retail food and
snack industry. In association to retail food and snack industry, people might face several issues
that are associated to their health. Consumption of fast foods might be a challenge for the people.
Health in this case has become the most significant driver of concern for the people (Pantano et
al., 2017). However, through conducting the research on Starbucks, it can be easier to analyse
the adverse effect the industry lays on the health of the people.
In the recent time, issues regarding health have been constant. This is because people nowadays
are much more inclined towards consumption of fast foods and hence most of the adults and
children suffer from obesity. The people of UK prefer having fast foods and thus, they are also
brand-lover. This makes them consume Starbucks products and other food items on higher rate.
Youngsters are much inclined towards showcasing and bragging off in monetary terms (Huang et
al., 2017). This can also be one of the major issues that can be highlighted in this context.
Consumers Demand Probability states about the inclination of people towards food organisations
like Starbucks makes them less cautious about their health.
By conducting this research, it has been found that different consumers show different behaviour
towards using the products of Starbucks. It has been observed that nuts and seeds are
increasingly popular among people and its food items are also preferred by the customers.
However, it has been evidenced that food dealing organisations are developing their strategies in
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context of the food that are supplied (Ravindran and Jaiswal, 2016). With the passage of time,
food items are becoming healthier that can lessen the risk of health.
1.2 Aim of project
The aim of the project is to understand, explore as well as investigate the behaviour of the
consumers towards the products sold by Starbucks
1.3 Objectives of project
● To understand the concept of consumer behaviour
● To explore the existent trends among the customers regarding the demand of the products
dealt with, by Starbucks
● To investigate the extent to which the products sold by Starbucks is popular among the
target audience of the company
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2.0 Trend in retail industry
Starbucks is one of the prime examples of trend setters in the company. The new CEO of the
company Howard Schultz has appreciated innovations and strategies in order to expand the
company. The strategies developed have helped the company to open many new stores around
the globe. Starbucks has introduced a range of new products in order to attract more customers.
The company has also a strong hold in the social media in order to impress the customers. For
these reasons Starbucks is considered as the most innovative company in the world. The
company can incorporate several marketing strategies that can help the company to enhance the
brand image. The company can take feedbacks from the customers in order to understand their
point of view.
2.1 Industry data and literature search
Starbucks is leading retailer of snacks and coffee around the world. The company operates
around 30,000 locations around the globe in 75 countries (Wertheim-Heck et al., 2015). The
company has net revenue in 6.1 billion dollars. The company came has history of 32 years of
technological background. Starbucks is also increased its sale by 11% with the help of the online
world. The company is responsible for 37% of operated sales in US. The company also has a
strong “Corporate Social Responsibility” background (Singh and Trivedi, 2016).
2.2 Write up of retail industry trends
In UK, people are much more inclined towards consumption of fast foods. These can lead to
certain health issues. However, there are retail industry trends that are required to be followed
and implemented for betterment of the products and services of the organisation belonging to
food and snack retail industry. Trends like savoury soars, states that the snacks that are made up
of savoury ingredients like meat, herbs, spices or cheese can be combined and made new snacks
and healthier for consumption. Better-for-you, Re-saleability and Single-serve can be considered
the most effective strategy through which the organisations are able to develop their products and
services (Kumar et al., 2017).
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For instance, Starbucks can be taken into consideration. The single cup of coffee of Starbucks in
the US has found to be accounted around 609.9 million U.S. dollars. Starbucks has taken
initiatives in various aspects in order to enhance customer satisfaction. In terms of leadership,
products, social responsibility and technology, Starbucks has massive global reach through
which customers all over are able to get access to products of Starbucks (Wang et al., 2015). The
organisation also adopts “techy feel” when one sits on the leather chairs and having their
refreshments. Time-to-time Starbucks also introduces new products that attract the attention of
the customers. The company also ensures about enhancing the experience of their customers.
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3.0 Analysis of organisation
In the present section discussion related to the organisation chosen is performed. The
organisation that is selected for the study is Starbucks. The method of questionnaire is also
applied for the data collection along with the organisation’s performance with the emerging
trends is highlighted.
3.1 Background of chosen organisation
Starbucks is the US based organisation that was founded in the year 1971. The company has a
range of products that it offers to its customers. They have set a wave of coffee making
worldwide. Starbucks is known for its innovation and trends that they bring in the quality of
products. The company now is expanding its brand in the growing economies of Asian and
African countries (Logan, 2016).
3.2 Primary data collection
It has been found that the Starbucks is trying to set new trend in the marketing strategies and
range of products around the globe. There are several types of consumers whose demands are
required to be met in order to expand globally (Akgün and Yalım, 2015). Targeting such
consumers can help the company to attain a strong position in the market. The main target area
of the customers for Starbucks is the age group of 18 to 30. The following questionnaire can help
Starbucks in order to understand the customers and their mentality.
1. What is your age?
2. What is your gender?
3. How often do you visit to Starbucks?
4. How far do you agree to the fact that the innovative products and services offered by the
company is the reason for the frequent visit?
5. Are the services and new products satisfactory?
6. Are you willing to try out any new shops that offer similar kind of products and services as
that of Starbucks?
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The marketing team has reported the findings of the research and analysis with a report. In the
report the discussion about the research is done below.
1. What is your gender?
Criteria No. Of Participants Total No. Of
Participants
% of Participants
Male 60 50 60%
Female 40 50 40%
Table 1: What is your gender?
(Source: Created by author)
Male Female
0%
10%
20%
30%
40%
50%
60%
70%
Figure 1: What is your gender?
(Source: Created by author)
From the above survey it can be said that the number of males and females that come to
Starbucks are almost comparable. 60% of the participants are male and the rest 40% are female.
2. What is your age?
Age group No. Of Participants Total No. Of
Participants
% of Participants
18 to 25 20 50 40%
26 to 33 15 50 30%
34 to 41 10 50 20%
41 to 50 3 50 6%
50 to 60 2 50 4%
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Table 2: What is your age?
(Source: Created by author)
18 to 25
26 to 33
34 to 41
41 to 50
50 to 60
Figure 2: What is your age?
(Source: Created by author)
From the above survey it can be said that the most active age group that is the target area of the
customers for Starbucks is 18 to 25. This age group contributes around 40% alone. The company
needs to plan the strategy according to that.
3. How often do you visit to Starbucks?
Criteria No. Of Participants Total No. Of
Participants
% of Participants
Daily 15 50 30%
Weekly 15 50 30%
Monthly 10 50 20%
Yearly 8 50 16%
Never 2 50 4%
Table 3: How often do you visit to Starbucks?
(Source: Created by author)
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Daily
Weekly
Monthly
Yearly
Never
0% 5% 10% 15% 20% 25% 30% 35%
% of Participants
Figure 3: How often do you visit to Starbucks?
(Source: Created by author)
From the above survey it can be said that the monthly and daily visitors of Starbucks are the
most in number. This helps to determine that Starbucks has a strong position in this competitive
market.
4. How far do you agree to the fact that the innovative products and services offered by the
company is the reason for the frequent visit?
Criteria No. Of Participants Total No. Of
Participants
% of Participants
Strongly agree 20 50 40%
Agree 10 50 20%
Neutral 10 50 20%
Disagree 5 50 10%
Strongly disagree 5 50 10%
Table 4: How far do you agree to the fact that the innovative products and services offered
by the company is the reason for the frequent visit?
(Source: Created by author)
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Strongly
agree
Agree Neutral Disagree Strongly
disagree
0%
5%
10%
15%
20%
25%
30%
35%
40%
% of Participants
Figure 4: How far do you agree to the fact that the innovative products and services offered
by the company is the reason for the frequent visit?
(Source: Created by author)
From the above survey it can be said that the customers have readily accepted the new products
offered by the consumers. Starbucks has a strong brand image and reputation that helps them to
gain loyal customers.
5. Are the services and new products satisfactory?
Criteria No. Of Participants Total No. Of
Participants
% of Participants
Highly satisfied 30 50 60%
Satisfied 10 50 20%
Neutral 5 50 10%
Dissatisfied 3 50 6%
Strongly dissatisfied 2 50 4%
Table 5: Are the services and new products satisfactory?
(Source: Created by author)
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Highly satisfied
Satisfied
Neutral
Dissatisfied
Strongly
dissatisfied
0% 10% 20% 30% 40% 50% 60%
% of Participants
Figure 5: Are the services and new products satisfactory?
(Source: Created by author)
From the above survey it can be determined that number customers that are highly satisfied with
new products and services are much high. 60% of people are very satisfied of the products that
are being offered to them by Starbucks.
6. Are you willing to try out any new shops that offer similar kind of products and services as
that of Starbucks?
Criteria No. Of Participants Total No. Of
Participants
% of Participants
No 35 50 70%
Yes 15 50 30%
Table 6: Are you willing to try out any new shops that offer similar kind of products and
services as that of Starbucks?
(Source: Created by author)
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