Coffee Challenge

Challenge Objective

For the Maven Coffee Challenge, you'll play the role of an Analytics Consultant hired by a group of investors looking to break into the US coffee market. They would like to leverage insights from "The Great American Coffee Taste Test", but lack the analytical skills to do so. That's where you come in!

You've been asked to share an explanatory report providing a data-driven strategy for opening their first coffee shop. The investors expressed interest in the following areas, but are open to any additional insights and recommendations you can provide:

• Target audience: What type of customer should we target, and what are their preferences?
• Product offering: What types of coffee beans and drinks should we offer?
• Pricing strategy: How can we align prices with customer value perception?
• 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: Pour-over 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 to be between $8-$10.