UNLOCKING THE US MARKET: THE GREAT AMERICAN COFFEE TASTE TEST ANALYSIS

INTRODUCTION

As an Analytics Consultant hired by a group of investors looking to break into the US coffee market. They would like to leverage insights from James Hoffmann’s "The Great American Coffee Taste Test", but lack the analytical skills to do so. James Hoffmann’s survey involves 4,000 Respondents in America undergoing a blind coffee taste test on four different cups of coffee named A, B, C and D. This experiment was designed to understand a largely identical tasting experience for people across the country.

OBJECTIVE OF ANALYSIS

The investors are looking forward to an explanatory report providing a data-driven strategy for opening their first coffee shop with direct interest but not limited to the following areas:

1. Target Audience: What type of customer should be targeted and what are their preferences?

2. Product Offering : What types of coffee beans and drinks should the company offer?

3. Pricing Strategy: How can the company align prices with customer value perception?

METHODOLOGY

The survey data underwent analysis and visualization entirely using Excel. Initial steps involved selecting variables pertinent to target audience and product analysis, including Age, Gender, Cups/Day, Coffee Consumption Place, Favorite Coffee Drink, Add-Ins, Coffee Type, Aroma Preference, Roast Level, Caffeine Type, Expertise Rate, and Favorite Coffee.

Subsequently, variables relevant to pricing and customer satisfaction, such as Maximum Spent on Coffee, Willingness to Pay, Expenditure on Coffee Equipment, and Perceived Value, were identified. Following variable selection, data cleaning was performed to eliminate null or irrelevant values. Cleaned data was then visualized according to the objectives of the study, drawing inferential statistics and correlation.

KEY INSIGHTS

1. Target Audience

· Demographics: The primary target audience comprises Caucasian and Pacific Islander adult males and females aged 25-34.

· Consumption Habits: They typically consume 2-3 cups of coffee per day, mostly preferring to enjoy it at home or in the office rather than on the go.

· Purchase Behavior: They regularly purchase coffee from special coffee shops, national chain shops, and local cafes.

· Employment Status: The majority are fully employed or part-time job holders, with fewer being homemakers, students, retired and unemployed.

2. Product Analysis

· Preferred Coffee Drinks: Pourover is the most purchased coffee drink, followed by Latte and Regular Drip Coffee.

· Taste Preferences: Most respondents prefer somewhat strong, light to medium roast, full caffeine coffee with no additions. However, a significant portion adds milk/dairy or sugar/syrup to their coffee.

· Favorite Coffee: Coffee D, which is low in bitterness and high in acidity, is favored by respondents.

3. Price Analysis

· Spending Habits: Most respondents spend between $20-$40 per month on coffee or coffee products.

· Price Sensitivity: The highest amount spent on a cup of coffee falls between $6-$8, with the highest amount respondents are willing to pay being between $8-$10.

RECOMMENDATION

1. Target marketing efforts towards working professionals and students, emphasizing the convenience and quality of enjoying coffee at home or in the office. Utilize digital marketing channels to reach this demographic, including social media platforms and targeted advertising on relevant websites.

2. Highlight the variety of coffee drinks available, with an emphasis on Pourover, Latte, and Regular Drip Coffee. Offer customization options for strength and roast level. Consider promoting specialty blends that cater to the preference for acidity and personalization.

3. Offer value-added promotions or loyalty to incentivize regular purchases. consider introducing subscription models for home delivery to encourage repeat business. Emphasize the quality and value proposition of the coffee to justify higher price points within the range of $8-$10.