Mini Case Study 1: Understanding Consumer Behavior in U.S. Coffee Market (Part 2)
Leveraging data from the ‘Great American Coffee Taste Test’ survey (courtesy of Maven Analytics), this case study provides the insights for potential investors interested in launching a coffee business within the United States.
What is a Mini Case Study?
It is essentially a part of my data storytelling content that dives into a step-by-step guide for data analyst projects, like the ones I’ve been working on. It essentially breaks down my report, explaining the thought process behind each visual element.
The Big Idea Worksheet
To introduce this case study, we’ll leverage the Big Idea Worksheet, a tool from Cole Nussbaumer Knaflic’s book ‘Storytelling with Data’. This will help us briefly explain the project’s goals.
Objective 2: Identifying Profitable Niches in the U.S. Coffee Market
While taste and caffeine are the top reasons people drink coffee, they’re unlikely to be unique selling proposition (USP) for our business. Many competitors will focus on delivering delicious coffee and including caffeine. These factors become points-of-parity, baseline expectations, rather than a niche that sets us apart. Therefore, let’s explore other aspects that could differentiate our coffee business.
While taste and caffeine are universal coffee motivators (points-of-parity), focusing on ritual and digestion presents exciting niche opportunities. Through strategic marketing, we can position our brand as the go-to choice for consumers seeking coffee that enhances their daily routines or supports digestive wellness.
Leveraging the survey results, we recommend prioritizing Pourover, Latte, and Drip Coffee on our initial menu due to their high popularity among respondents. The remaining coffee options can then be evaluated and adjusted based on the survey data.
Are there significant differences in drink preferences between men and women? While our target audience wasn’t gender-specific, the data revealed a fascinating distinction in the usual coffee choices between male and female respondents.
While females make up only 24% of respondents, a significant portion of them prefer Latte. Conversely, a larger portion of male respondents favor Pour-over coffee.
Are there any trends in coffee add-on preferences? To determine the complementary offerings that would best suit our coffee business, we can delve deeper into the types of add-ons respondents typically use in their coffee drinks.
The survey reveals that most respondents prefer black coffee. However, the most popular add-on is milk or coffee creamer. This suggests that these should be offered as basic options. A separate survey can be conducted to determine the preferred type of milk or creamer.
Conclusion
In conclusion, we’ve identified both baseline expectations (points-of-parity) and unique selling propositions (USPs) to guide our coffee business strategy. Flavor and caffeine clearly emerged as the primary motivators for coffee consumption. This suggests a focus on delivering high-quality, flavorful coffee with an appropriate caffeine level.
To differentiate ourselves from competitors, we can leverage our USPs by developing a strong brand identity. For example, we could create a specialty coffee brand known for its digestive benefits or cater to those seeking a specific coffee ritual experience. However, further research is necessary to determine the market attractiveness of these niche segments.
Our analysis of the survey data also reveals valuable insights into customer preferences regarding coffee drinks. The top three choices are pourover, latte, and regular drip coffee. This information can be used as a starting point for developing our initial menu. Additionally, milk or coffee creamer is the most preferred add-on, suggesting these should be readily available to customers.
Moving forward, we will focus on determining the optimal pricing strategy to establish competitive and profitable prices for our coffee menu. Stay tuned!
Thank you for reading!
I hope this case study provided valuable insights. If you have any questions, feel free to reach out.
For those interested in exploring more data storytelling and data visualization content, I consistently create such content on my Patreon page.
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