Starbucks Analyzes Consumer Behavior to Tailor Strategies Across the UK

Starbucks UK faced a pressing need to understand consumer behavior differences between their London stores and other locations across the UK, particularly in the context of shifting consumer behaviors that followed the pandemic. The challenge was to determine how Starbucks could increase brand consideration and identify short-term and long-term behavioral differences. Additionally, it was crucial to ascertain whether separate regional strategies were necessary to maximize effectiveness.

To address these challenges, we implemented a nested econometric model to analyze the influence of both media and non-media factors on key performance indicators (KPIs) specific to London and other UK regions. This tailored analysis allowed us to provide Starbucks with precise insights, enabling more informed short-term and long-term decision-making.

1. Consumer Behavior Analysis: We examined the differences in consumer behavior in London compared to other UK regions, focusing shifting spending habits.
2. Media and Non-Media Influence: By analyzing the impact of various media channels (such as Meta and audio) and non-media factors on KPIs, we identified the most effective drivers of performance.
3. Customized Strategies: Based on our findings, we recommended strategic adjustments tailored to the distinct characteristics of the London market and other regions.

The implementation of our nested econometric model yielded significant improvements in Starbucks UK’s performance metrics. A remarkable 78% year-over-year (YoY) increase earned in return on advertising spend (ROAS) highlighted the success of the tailored strategies.

The strong performance outcomes demonstrate the effectiveness of customized regional strategies and underscore the importance of understanding and leveraging consumer behavior differences. Starbucks UK’s ability to adapt its marketing approach based on these insights has positioned the brand for continued growth and success in diverse markets.