Starbucks Prepaid Card

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Starbucks Prepaid Card
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Background

• Product launched in late November in more than
  90 of the companys 3,000 owned-and-operated
  stores in the U.S. and Canada
• This card was created to replace paper
  certificates the company has used for years.

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• First Ad 2 largest markets, Seattle and Chicago
• During the latter half of the first quarter, the
  average activation amount was about 14, and
  mostly in the range of 10-25
• As a result of this successful launch, the
  company might launch more loyalty programs to
  improve the customer experience through
  technology.

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Starbucks Card

• The new Starbucks card offers the convenience of
  shopping online and in participating retail
  stores with one quick and easy payment method
• Amount of Starbucks Card 10, 25, 50, 100 and
  other (10-500)

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• Where can we use Starbucks Cards?
• - www.starbucks.com
• - 1800-STARBUC
• - Starbucks stores except all airport,
  grocery and bookstore locations, or stores in
  Hawaii, Puerto Rico, Guam and outside North
  America

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• How do we check the balance on my Starbucks Card?
• On-line at Starbucks.com
• 1800-STARBUC
• How can we add value to our Starbucks card after
  we have used up all the balance?
• Reload our cards by visiting Starbucks.com

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Objectives

• To identify the customer preference on Starbucks
  prepaid card in central city of Philadelphia and
  university city areas
• To understand the customer preference on
  Starbucks payment methods

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Objectives continued

• To identify the influence factors toward
  Starbucks prepaid card such as brand awareness,
  promotion, benefits, advertisement and
  convenience
• To adjust the prepaid card promotion
• To find out the value of the prepaid card that
  Starbucks should choose

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Data Collection Process

• Focus Group
• Size 119 samples
• Schedule 8.00am-8.00pm
• Location
• Central city of Philadelphia
• University of Pennsylvania
• Drexel University
• Internet

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Questionnaire Profile

• Starbucks Customers 86
• Non-Starbucks customers 33

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Demographic Data(Nominal Scale)

• Gender Male 39.50
• Female 60.50
• Age 64 are 21-30 years old group
• Career 63 are Full-time students
• Annual Income 68 are under 30,000

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Demographic data

• Average Visiting Time/week
• (Ratio Scale) Mean is 1.8 times
• Average Spending Money/week
• (Ratio Scale) Mean is 6.24

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Demographic Data

• Ranking the most meaningful value of prepaid to
  customers
• (Ordinal Scale)
• Fast and convenience (Mode)
• Money control
• In trend
• Redemption
• Discount and gift benefits
• Others

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• Ho The majority of customers goes to Starbucks
  in the morning

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When most Customers go to Starbucks? (Nominal
Scale)

• Morning 30.20
• Lunch 9.30
• Afternoon 37.20
• Evening 18.60
• Late night 4.70

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• Ho The majority of customers knows the prepaid
  card exists

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• Are you aware that Starbucks has a prepaid card
  promotion in Philadelphia area? (Nominal Scale)
• Yes I Know 22.1
• No, I Dont know 77.9

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H0 Customers prefer the faster check out more
than cash payment
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• Please indicate your own preference on a payment
  at Starbucks ? (Nominal scale)
• Cash Credit card Gift
  card
• Do you believe that a prepaid coffee will make
  your payment easier than cash payment ? (Nominal
  Scale)
• Yes NO

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Result
  Believe   Believe    
  Yes No Total
Cash 37 32 69
Credit Card 7 6 13
Gift Card 3 1 4
Total 47 29 86
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Ho Customers prefer value added promotion more
than free gift
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• For what kind of prepaid card promotion would
  interested you? (Interval scale)
• Strongly and somewhat interested
• Value-added Promotion 25.6
• Free Gift 14

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• Ho Media advertisement influences on
  Starbucks customers more than word of mouth

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• How do you mostly learn about Starbucks
  promotion? (Nominal Scale)
• __ Word of Mouth
• __ Store Board
• __ Magazine
• __ Radio
• __ TV News
• __ TV Commercial
• __ Internet
• __ Never Heard

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Result
Media Frequency Percent Cumulative Percent
Word of Mouth 23 26.7 26.7
Store Board 23 26.7 53.5
Magazine 4 4.7 58.1
Radio 3 3.5 61.6
TV News 1 1.2 62.8
TV Commercial 1 1.2 64
Internet 1 1.2 65.1
Never Heard 30 34.9 100
Total 86 100  
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Ho The availability of vending machine in
supermarket is better than Starbucks store
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• In what type of retail stores would you mostly
  expect to find this prepaid card vending machine
  (Nominal Scale)
• Starbucks store
• Supermarket
• Convenience store
• Internet
• Pubic vending machine

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Result
  Frequency Percent
Starbucks Store 45 52.30
Supermarket 12 14.00
Convenience store 15 17.40
Internet 4 4.70
Public Place 10 11.60
Total 86 100.00
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Ho The prepaid card will increase customers
consumption
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Is it possible that you will drink more Starbucks
coffee because of the convenience from the
prepaid card? (Interval Scale)

• Not increase consumption 9.3
• Impossible somewhat 18.6
• Neither or not 34.9
• Possible somewhat 30.2
• Increase consumption 7.0

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Conclusion
1.78 of Starbucks customers dont know about
prepaid card. 2.80 of customers currently
prefer cash payment, However there is a
high possibility for customers buying
prepaid card. 3.Most customers go to Starbucks
in the afternoon and morning
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Conclusion
4. Word of month and store billboard are the
most effective promotion way to its current
customers, however they are not good
enough to explore the potential
customers. 5. Extremely desire for the face
value of prepaid card, 25 100.
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Recommendation

• Taking advantage of media for
• promotion to explore its potential
• customers.
• 2.Convenient store and supermarket
• are alternatives to promote prepaid
• card.

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Recommendation
3. Let customers know its prepaid card!! 4.
Continually promote the prepaid card program.
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Question ????