Business Research & Analytics and Marketing Recommendations Report: Starbucks

Background

With more than 35,711 stores spread over 80 countries and a market share of roughly
34.74 percent in the US, Starbucks is arguably the number one coffeehouse not only in the
country but also globally (Jeffrey, 2023). Strong brand recognition, commitment to
sustainability, strong digital presence, global presence, strong customer loyalty, strong financial
performance, and product differentiation are some of the strengths Starbucks is leveraging to
outwit its rivals like Dunkin’ Donuts. Despite being the leading brand, a recent shift to
innovative products to capture and attract the younger, hippy, and urban consumer through
innovative and premium products like macchiato has been criticized for failing to live up to the
expectations and hype.
The issue is that customers are often dissatisfied with their orders, especially Macchiato
orders. The root of the problem is that Starbucks has been unable to offer high-quality,
traditional macchiato products. Some customers have accused the company for making a
“layered latte” and calling it a macchiato, or focusing on excess “foam” and “milk” rather than
flavoring the drinks. The truth is that customer discontent with Starbucks’ macchiatos is growing
and even online reviews of macchiato flavors are hitting way below 4.5 out of the possible 5.0
points. For instance, on Amazon platform, Starbucks Iced Espresso, Caramel Macchiato has
scored a measly 4.3 rate, with as much of 7%, 3%, and 8% giving one-star, two-star, and three-
star ratings, respectively (Amazon, n.d.).
As Starbucks’ product manager, this paper recommends, based on research and analytics,
potential changes to increase customer satisfaction in macchiatos, product line extensions to add
to the current product line, and how the product management team will evaluate customer

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complaints to avert a potential customer apathy and preserve Starbucks’ brand reputation and
customer loyalty. It also discusses whether Starbucks is keeping with the identified target and
positioning and recommends how to leverage the business & analytics information collected in
this analysis to make future marketing decisions, as well as how, moving forward, research and
analytics can be used to assess marketing decisions.
Changes/Improvements

Recommend what changes or improvements should be made to increase customer satisfaction or to
better fit your recommended target and positioning for the ONE product/service you have selected.
Explain the research and analytics you will use to drive changes and improvements.

Product Line or Services

Recommend what product line extensions or services should be added to the current product line.
Explain the research and analytics you will use to determine recommended product lines or
extensions

Complaints

Recommend how your team will assess customer complaints. Compare the different types of
customer satisfaction research that is available.

Product or Service Location:

Physical Location: If your product or service is offered in a physical location, assess whether it is in
keeping with your selected target and positioning. Share your recommendations for improvement.

Recommendations for Marketing Decisions

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Based on your research and analysis of the information indicated above, provide recommendations
for leveraging this information to make future marketing decisions.
Assess how, moving forward, you will use research and analytics to evaluate your marketing
decisions.

References

Amazon. (n.d.). Customer reviews: Starbucks iced espresso, caramel macchiato.
https://www.amazon.com/Starbucks-Iced-Latte-Caramel-Macchiato/product-
reviews/B083GGKFYV
Jeffrey. (2023, Jan. 3). How big is Starbucks’ market share in 2023: An in-depth look. Your
Dream Coffee. https://yourdreamcoffee.com/how-big-is-starbucks-market-share