Team Research Project

 Team Research Project
Globally, Starbucks is the most recognized coffee shop. Operating over 24,000 stores in 70 countries, Starbucks is fulfilling its two agendas: to “share great coffee with our friends and help make the world a little better” (Starbucks.com). The first Starbucks was established by Jerry Baldwin in Seattle Washington, Pike Place Market, in 1971. Ten years later, a gentleman by the name of Howard Shultz, found himself inside Starbucks with a cup of Sumatra.
Intrigued by the atmosphere and layout of the store, Howard joined Starbucks in 1982 and purchased it in 1987 (Starbucks.com, 2016). As chairperson and Chief Executive Officer of Starbucks, Howard Shultz began to set his vision in motion. His vision for the company was inspired by his travels to Italy and how the shops provided coffee bars with coffee experience. His vision incorporated the original foundation in which Starbucks was built; consisting of "celebrating coffee and the rich tradition" (Starbucks.com), but bringing the feeling of a connection similar to the Italian traditional experience. Howard's mission statement for Starbucks is "to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time" (Starbucks.com). Today, according to Forbes, Starbucks is worth $85.3 billion dollars and is listed as number 45 on the World's Most Valuable Brands. The company also generates approx. $20 Billion a year in sales (Forbes.com). Although business is steady and continuously popular amongst individuals of various ages, there is always room for improvement or expansion. The company will eventually look to introduce a new product or service to add variety and an updated selection.
Starbucks and Pokémon Go
The Pokémon Company was launched in Japan in 1996 (Pokemon.com, 2016). Today, with the telephone application called Pokémon Go, mobs of people are involved in the search for imaginary creatures (Evans & Anderson, 2016). Because of the success Pokémon Go has produced among people, businesses are implementing to attract those who play this game. For instance, the application offers lure modules, which is a marketing strategy to lure the Pokémon characters into a certain location for a certain amount of time (Forbes.com, 2016). Prices start at $1.19 per hour or $100 for 84 hours (Forbes.com, 2016). According to the author, a small pizza bar in New York City increased their business by 75% by using lure modules (Forbes.com, 2016). With this said, the idea of having Starbucks associate with Pokémon Go can be a good idea to not only lure Pokémon to the store but also lure new and current customers.
Research Hypothesis
The strategy will consist of having the Starbucks' Marketing department purchase the Pokémon lures, make a worldwide advertisement of the merging, and increase product inventory and resources. However, a market research should be performed before implementing the idea nationwide or worldwide. This research will allow Starbucks to understand if this merge can bring business to the establishment, or it will just create a crowded environment.
Business Ethical Dilemma
An ethical dilemma that Starbucks can face is the fact that people can loiter catching Pokémon without making a purchase. For example, the younger generation of Pokémon Go users, might not have the monetary supplement to purchase a coffee. On the other hand, teenagers can use Starbucks coffee shops as a meeting place with friends. What Starbucks is trying to accomplish is to increase the sales. If loitering could become an issue, then the idea of merging with Pokémon Go will not work.
Areas Lacking Market Research
Before the Starbucks organization contacts the makers of Pokémon Go and introduce the new service to the business, it is important for the company to conduct a market search. Some of the areas that should be thoroughly researched upon include; the target market, the size of the target market, and the per capita income to be required as well as be earned from the investment.
Target Market
Starbucks organization needs to be sure of the exact target market to ensure the new Pokémon Go service will attract the right customers. The purpose of the market research’s data will determine whether the new services will make a positive impact or not.
Size of Target Market
Apart from the target market, the size of the target market will determine whether the number of clients involved can sustain the new service or not. This could be a reality if the target market size is too small, the new service might become costly for the company and returns shall not be realized.
Per Capita
Lastly, the amount required for the new service to be introduced and implemented is also important. The lack of ample information about required resources might lead the organization to engage in the project without enough resources. Specifically, lack of monetary resources could leave the firm with an unfinished project. Moreover, it is also critical and valuable to know in advance the expected returns. This information would help the company to know whether the amount invested is appropriate or not. After the service is introduced, it should bring limited profits; it would not be logical to spend a high amount of capital.
The introduction of a new service into the organization is highly critical to the Starbucks business. The reason is that the firm shall have diverse products that clients can choose from and keep them entertained. Introducing Pokémon Go to customers can be an excellent opportunity to help the business and build customer trust and loyalty. This scenario is also important because it would grant the business to attract a new target market; the company can improve its market share and profit margin. Moreover, it is a great opportunity for the firm to showcase its high levels of innovation, to market itself, and establish a good public image.
What Research Tools to Use?
  A market research is needed to determine if Starbucks will benefit from the merging of Pokémon Go. Quantitative and qualitative data are helpful processes for information gathering. Quantitative data focuses on measuring statistical data (Aaker, Kumar,  & Day, 2007). Qualitative data, in this scenario, will be based on observations. First, the target market and size of the target market is identified by using demographics in the area (quantitative data). The Census Bureau web page provides statistics for all states; this information will help Starbucks determine the age, gender, and income (United States Census Bureau, 2016). Another research tool is to find the consumer expenditures from the United States Department of Labor website. This website provides information on the average expenditures per consumer unit (Bureau of Labor Statistics, 2015). This information will help Starbucks to determine how much consumers are willing to spend on different items such as food, housing, and entertainment (Bureau of Labor Statistics, 2015). On the other hand, qualitative data will be put into practice by choosing one Starbucks location and apply the Pokémon Go idea. After observing customer behaviors, data will be collected and analyzed. Also, a focus group will also be helpful in data collection. The focus group can ask about their individual perspective toward the Pokémon Go features inside the store. After the observation analysis is determined, then Starbucks will decide if it the merge with Pokémon Go will have a positive impact or not.
Data Collection
Starbucks coffee will be using the qualitative data due to the lack of information of businesses merging with Pokémon Go. With this said, observational research is the best choice for this case. Observational research is done to see if loitering takes place inside Starbucks when Pokémon Go is activated. After observing customer behaviors, the data is shown in the following table:
NUMBER OF DAYS
TOTAL CUSTOMERS
TOTAL NON-CUSTOMERS
% OF CUSTOMERS WITH PURCHASE
% OF CUSTOMERS WITHOUT PURCHASE

DAY 1
472
29
94.21%
.06%

DAY 2
598
17
97.23%
.03%

DAY 3
447
12
97.39%
.03%

This table shows how many people purchased a product from Starbucks, while a small percentage of people met in the shop without making a purchase. There are other factors that might contribute to the small percentage of customers not making a purchase. Factors such as target market, and the location of the coffee shop can determine this low percentage. It is necessary to ample the data collection to determine if this Starbucks is located in a business area or a residential area. To do so, the United States Census Bureau will be the secondary source used for this market research. Below, the data portraying the sex and age in the City of San Diego can support the results from the observational research.