Uni-president seizes brewed coffee market with Starbucks and City Café

統一星巴克與City Café 各擅勝場搶攻咖啡市場The current study examines consumption habit for coffee users in Taipei and effects of branding on the consumption preference and the possible cannibalization effect of City Café on Starbucks. Through a study consisting of surveys of 108 Taiwanese citizens and a taste test involving 20 students, the following conclusions are made. 1) The findings show 55% of the Taiwanese population drinks coffee on a daily basis and concluded that selling more City Café could increase store revenue by bringing more customers into 7-Eleven stores. 2) The product awareness of City Cafe is gaining quickly with in-store advertising only and without much traditional advertisements; it is enough to have attracted daily drinkers at a rapid rate. 3) Starbucks customers and City Café customers differ in terms of feelings about importance of brand and willingness to pay more for coffee. City Café would not cannibalize Unipresident operated Starbucks walking customer sales if the stores were placed 4 blocks apart. 4) The “blind” and “open” taste tests show people are heavily influenced by brand in their determination of taste. The favorable response in our “blind” taste test compared to the “open” taste test led to the conclusion that a properly managed brand building campaign could increase sales significantly. In the study’s final section, I suggest ways of communicating brand awareness and quality reputation to the customer without infringing on Starbucks market niche. Unipresident seizes Brewed Coffee Market with Starbucks and City Café By Chien-Hui Ka