Coffee shop

Challenge Objective

As part of this challenge, we take on the role of an Analytics Consultant hired by a group of investors planning to enter the American coffee market. Our task is to create a report based on the findings of "The Great American Coffee Taste Test", which involved over 4,000 participants. It asked questions including where respondents drink coffee, what their favorite coffee drink is, and the reasons for drinking coffee. The aim of the report is to prepare a strategy for opening the first coffee shop.

Selection criteria for the target group

he target group consists of individuals who:

1. Drink at least one coffee per day.
2. Purchase coffee either in cafés or to go.

Recommendations and conclusions

1. Focus on premium clientele The simulation results indicate a strong emphasis on premium clientele. Nearly 40% of revenue is generated by customers who are willing to pay over $20 for a cup of coffee. Moreover, a significant portion, over 70%, of our customers are individuals who have the financial capacity to spend at least $10 on coffee purchases.

2. Espresso holds the highest value Espresso emerges as the most lucrative product, with over 30% of customers indicating a willingness to pay over $20. This underscores the importance of emphasizing espresso offerings in our product lineup.

3. Customer preferences According to the survey, the most popular coffee recipe among our clientele is a pourover brewed to a somewhat strong intensity but with a light roast profile, highlighting a preference for balanced strength and delicate flavors. The survey also indicates a strong preference for fruit bean coffee.

4. Marketing strategy Our target demographic primarily comprises men aged 25-34 who view coffee consumption as a sensory experience and consider themselves moderate experts. Given the youthful profile of our clientele, our marketing campaign should be predominantly executed on social media platforms to effectively engage this audience and capitalize on their online presence.