Business Model Canvas

Team Members: Kris Beaird, Daisy Nino, Anthony Ferrin, Nayeli Ramos, and Giau Pham

   Initially, we’re setting out as a team to create an app that not only simplifies the infamous Starbucks Secret Menu but also enhances it, both from the end Starbucks Customer as well as the Barista. Below are our starting hypothesis mapped out using the business model canvas, followed by more in depth explanations of each section. 

Key partners: Starting out we’ve identified Starbucks as a key partner in that success of our businesses will be in many ways interdependent. Bartista level knowledge of Starbucks is a key resource in the apps success. Additionally, success of the app creates a greater tie between our target market and Starbucks, which will of course benefit them.

Key Activities: These will consist of writing the initial code for the app, creating and maintaining strong ties to social media, and crowd sourcing new recipe ideas.

Key Resources: We will be relying on key resources such as the coding for the app, knowledge of both Starbucks and the Secret Menu, and an understanding of technical aspects with regards to making the app compatible with both Apple and Android devices.

Cost structure: Our major cost will consist of coding for the app, building and maintain a companion website to legitimize and direct traffic to the app, and funding for any promotions or contests that will be utilized in creating/maintaining customer relationships.

Value proposition: Starbucks customers (teens)– For the teens our app will be value driven by elevating users to an insider status as well as insuring drink consistency. Additionally, the app will welcome user input and feedback to give the customer a greater role in the overall Starbucks experience. Baristias – For the baristas the app will create value by simplifying and speeding the ordering process for complicated custom drinks as well as eliminate the pain of unsatisfied customers and resulting stress.

Customer relationships: Get – We will acquire new customers mainly through involvement in social media and word of mouth. However, we also plan in implement contests such as “create your own frap” to catalyze interest. Keep – The app will include a points/rank system based on in app activity in order to keep customers coming back. Features such as “new recipe alerts” or additional contests may also be utilized. Grow – The bulk of our grow strategy is based on high social media involvement, capitalizing on known hash-tags as well as creating our own to connect our customers and continually reach out to new discoveries.

Customer segments: Starbucks customers (teens) – Our target Starbucks customer is between the ages of 13-17 and typically female as we believe this to be the market segment most interpreted in the Secret Menu. Baristas – Our target Baristas include all age ranges as well as both male and female. We may focus in on baristas that typically work afternoons shifts as they are most likely to be dealing with our target Starbucks customer.

Revenue streams: We’ve proposing two versions of the app, one paid that offers additional features (most likely targeted at the baristas) and one free version that will feature paid adds (most likely targeted at the teens). This is simply because our Starbucks customers are less likely to have excess disposable income and are likely more concerned with increase the price of their trip to Starbucks by actually purchasing the app, meanwhile the baristas are more likely to have income to pay for the app but won’t be as intrigued to own the product without additional features.

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   Next up is our plan to get out of the building and test these hypothesis. Our testing will be conducted mainly, if not entirely, through interviews conducted with our two target customers: Starbucks customers between the ages of 13 and 17 as well as current Starbuck’s baristas. We’re focusing on three questions specific to each target customer as well as one that will be asked universally. All questions were left as open ended as possible to allow us to gather extensive and unbiased data.These proposed questions as well as notes on pass or fail for each are listed below. 

Universal Question One: Have you had any experience with the Starbucks secret menu?
Pass/Fail Criteria: For customers, we ask this question to gauge interest. The customer may or may not already be familiar with the Secret Menu but if they show interest we can essentially count it as a pass. On the other hand, for barista’s we’re looking to gauge the stress level related to the Secret Menu so if their experiences are all positive ones the app may not really be solving any pains and it can be counted as a fail.

Barista Question Two: What kinds of request slow you down on register?
Pass/Fail Criteria: To count as a pass, we don’t need the barista to explicitly say Secret Menu orders. If they complain about over customization or customers not understanding their own drinks, it’s a pass. If the response does not include either topics we will count it as a fail.

Customer Question Two: Can you describe your typical Starbucks experience?
Pass/Fail Criteria: Here a pass can either come from the customer mentioning any of the following pains and therefor confirming a hypothesis: attempting to order a complicated drink, not sure what to order, difficulty communicating order to barista, or lack on consistency with drink. Meanwhile, a fail would be a response more along the lines of “I get the same thing every time” or “I order straight off the menu and it’s the same every time.”

Barista Question Three: Can you tell me a story about some of your most frustrating requests/orders?
Pass/Fail Criteria: If the barista cannot recall a recent frustration or details one that focuses more on the personality or manner of the customer we’ll count it as a fail. However, if the barista mentions lengthy, complicated, and down-right ridiculous recipe requests it will be a pass.

Customer Question Three: What do you value about Starbucks? What is it that keeps you coming back?
Pass/Fail Criteria: Anything along the lines of consistency, variety, ability to customize, is a pass. A fail would be a response focused more on location, price, etc.

Barista Question Four: How well do you think your customer actually understands their order? How does this effect you?
Pass/Fail Criteria: A response that feels the customer have high or perfect understanding of their drink and how it is made is a fail. However, any response indicating that a greater understanding of their order would lead to increased satisfaction with the experience for either party is considered a pass.

Customer Question Four: Have you ever had a bad experience at Starbucks? If so please describe it.
Pass/Fail Criteria: In this case, a pass is any response that points to one of the pains we’re solving with our value proposition, so any mention of inconsistency with a customized drink, lines being help up by crazy orders, misunderstanding between customer and barista of what was requested, etc. A fail would be experiences that focus on problems unidentified by the app or a response that fails to describe a bad experience at all.

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   Lastly, we’ve analyzed the market size with the following data. There are a reported 190 million smartphone users in the United States, this encompasses the total available market. We then narrowed it down by our age range, which gave us a number around 13.3 million.

We also looked into Starbucks data, which indicates there are 60 million Starbucks customers a week and about 2% of them fall within our same age range. Even at just 2%, that means teens account for roughly 1.2 million of Starbucks’s customers each week.  Assuming that our target Starbucks customer comes in about once a week if not more we’re estimating the size of our target market right around that 1.2 million point. Additionally, this figure is well within our total available market and we can assume that any teen with the disposable income to spend on Starbucks is a likely smartphone owner as well.