Anuradha Manna Mayur Mittal Varun Mahajan

(ARP Group 10)

Comparative Analysis of Tea & Coffee Consumption in Premium Specialist Caf Chains in Singapore - Case Study of Starbucks & TWG Tea

Literature Review
The Effects of Advertising on Brand Switching and Repeat Purchasing John Deighton, Caroline M. Henderson, and Scott A. Neslin (February 1994) Lifestyle Trends Accelerate Growth in South African Cafes/Bars - Euromonitor International (28 June 2011) Premium coffee sees greater opportunity in the UK despite recession Euromonitor International (01 December 2009) Beverages in Consumer Foodservice: What You Drink is Who You Are Euromonitor International (March 2012) Company Watch: Starbucks wakes up and smells the coffee - Euromonitor International (10 July 2008) Making Tea a Luxury (TWG Tea in Singapore) - Forbes Asia; 12/14/2009, Vol. 5 Issue 19, p80-82, 3p, 2 Tea: Make It More Than A Drink - Donna Berry, Dairy Foods (March 2009)

Introduction

S$ million

Retail Hot drinks market - $155 million. Growth of 4.5% in 2010 Forecasts 2015 - $198.3 million, an increase of 27.9% since 2010 Coffee share 78.2% , Revenue of $121.3 million Tea share 17.9% , revenue - $ 17.9 million

568.1 103.9 171.9

Bars/Pubs Chained cafes Independent Cafs Chained Specialist coffee shops Independent Specialist Coffee Shops

68 129.1 260.1

Primary Research Secondary Research

Undertake a market survey of tea and coffee consumers in the premium specialist cafs of Singapore. Interviews with Industry Experts Study of major differences between premium tea and coffee chains. Audience targeted classification to be done on Socio economic parameters Business persons Tourists High Income individuals Teenagers

Scan all researches conducted for the premium tea and coffee segments Understand the scope and limit of our research

Objective
Analyze impact made by premium specialist caf chains Study consumer perception of this premium segment Examine tea and coffee consumption patterns Determine factors that drive the success of these caf chains

Hypothesis
There is a major impact made by premium specialist caf chains on the tea and coffee consumption in Singapore TWG Tea has single handedly changed the way consumers perceive tea Starbucks has been a major driver behind the increase in coffee consumption in Singapore

Methodology
Research Methodology Primary Quantitative Customer Survey
Factor Analysis Correlation Regression Perceptual Mapping

Secondary
Qualitative Qualitative Quantitative

Expert Interviews

Literature Review

Coffee & Tea in Singapore

Sample Questions
Do you visit specialist cafs? Which ones and how often? Have you visited Starbucks or TWG? How would you rate their premium value on a scale of 1 to 5 with 1 being lowest and 5 being highest? Do you consume tea or coffee? How much do you spend there? Do you recall any advertising/promotion by them? Did it influence your decision to visit them? What do you like most about the caf? What would like to see improved?

Probable Outcomes
Specialist Coffee chains have positively impacted the overall consumption of coffee Consumers are more inclined towards coffee rather than tea Premium tea brands have revived the tea culture of Singapore to a certain extent Coffee chains concentrate on tourist and tea chains focus more on domestic consumers Branding and advertising has helped improve consumption of tea and coffee

References
Ebsco Host Euromonitor Google Scholar Thomson Reuters

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