Urban Grounds Coffee Loyalty Marketing Research Report

Starbucks and Coffee Bean are some of the important dominant players in the Singaporean coffee industry. Along with this there are many other International Coffee brands that are operating. As there are so many players, the level of competition is also very intense and there are additional issues faced by these businesses particularly attributed to the nature of the industry. As for example, the behaviour of customers is changing, and their high overheads along with rising expectations for quality products.

Urban Grounds is another important player in the coffee industry and the company is looking to satisfy its customers to ensure better retention, as the company believes that this is the only way to ensure business continuity over a long period of time. As a result, the management is keen to identify the ways in which pricing strategy, quality of service, brand image and advertisement strategy impacts the customer loyalty in such an industry.

You are required to write a marketing research report in which you identify how Urban Grounds can achieve sustainable growth through customer retention. Focus on strategies related to pricing, advertising, brand image and service quality by collecting data from customers of urban ground using any method including survey or interviews, and come up with a report identifying the important themes.

To perform the analysis you can follow the marketing research report structure which includes an introduction, literature review, methodology, qualitative research, results and analysis, discussions, conclusion and limitation of the study.

Expert Answers on Above Urban Ground Coffee Case Study

Industry background and business problem

An analysis of the coffee industry of Singapore suggests that it is highly competitive and there are many international brands competing with the local brands. The situation of Urban Grounds is not that good as it is facing the issue of high rent, changing expectations among customers and strong competition. Customer retention is an important way through which long term sustainable growth can be ensured.

Research objective

The main objective of the research is to analyse whether the price, advertisement effectiveness, brand image and service quality can affect customer retention at Urban Grounds.

Quality themes identified:

There are different themes identified to evaluate the quality and these include perceived service quality, staff competence, speed and efficiency, pricing fairness, value for money, impact of advertisement, brand image, store atmosphere, customer loyalty and promotional influence.

Statistical analysis

The data collected using surveys are analysed using statistical techniques through the application of SPSS and the findings reveal that there is an acceptable reliability in respect to service quality, price, brand image, advertisement and retention, as reflected by Cronbach Alpha. The findings from the regression analysis in detail show that service quality becomes the strongest predictor of customer attention whereas price is important but it does not have a major impact. Brand image is also identified as having a significant influence and advertising has moderate effect at all.

Demographic differences

The data revealed that service quality is highly preferred by females over male and in terms of age, the loyalty is highly identified among older customers. The price sensitive factor is low in case of higher income group people and the working status people rate speed and efficiency more.

Discussion

On the basis of the entire analysis, it is discussed that Urban Ground can ensure retention of its customers by emphasizing more on the service quality, delivering consistent and friendly service, strong brand identity, and creating engaging and relevant advertising.

Recommendations

The analysis leads to recommendations that the company should focus on improving its staff training, run loyalty based promotions, enhance in store ambience and efficiency, and introduce targeted ads especially for younger customers.

Disclaimer: This answer is a model for study and reference purposes only. Please do not submit it as your own work.

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