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Research
Conduct Research Around Coffee - Japanese Coffee Market Study
Project Context
Role
UX Designer
Team
Solo project (OpenClassrooms Project)
Duration
Jan 2022Mar 2022
3 months
3 months
Tools
Pen & PaperCoggleMiro
A multinational brand reached out to me to conduct a study on how people drink coffee. I conducted Ethnography, Competitor Analysis, Created Personas & Journey Map, and Synthesized my Findings.
Research Question
How do people in Japan drink coffee and what are the keys that are important to users and the pain points they face?
Research Methodology
Based on the Double Diamond Design Thinking Process. First, Discover-Research phase: I conducted Secondary research (macro-environmental analysis and competitive analysis) to better understand the Japanese coffee market. Then I conducted Primary research (field observations and user interviews). After that, as the Define-Synthesis phase, I did Affinity Diagrams, Personas and Journey Maps to find insights.
The research followed the Double Diamond Design Thinking Process: Discover-Research phase (Secondary and Primary research) and Define-Synthesis phase (Affinity Diagrams, Personas, Journey Maps).
Secondary Research - Macro Analysis
Japan Coffee Consumption Trends by Type (2002-2020)
Source: Basic Survey on Coffee Demand Trends by Japan Coffee Association
| Year | Total | Instant | Regular | Liquid | Can |
|---|---|---|---|---|---|
| 2002 | 10.03 | 4.29 | 3.22 | 0.74 | 1.77 |
| 2004 | 10.43 | 4.4 | 3.49 | 0.86 | 1.68 |
| 2006 | 10.59 | 4.38 | 3.7 | 0.7 | 1.81 |
| 2008 | 10.6 | 4.51 | 3.21 | 0.82 | 2.05 |
| 2010 | 10.93 | 4.69 | 3.27 | 1.09 | 1.87 |
| 2012 | 10.73 | 4.46 | 3.2 | 1.14 | 1.93 |
| 2014 | 11.13 | 4.54 | 3.63 | 1.11 | 1.84 |
| 2016 | 11.09 | 3.95 | 3.89 | 1.51 | 1.75 |
| 2018 | 10.62 | 3.92 | 3.69 | 1.54 | 1.47 |
| 2020 | 11.53 | 4 | 4.41 | 1.97 | 1.15 |
Macro analysis examining Japanese coffee consumption patterns, including how much coffee Japanese people drink per person per week, where and how they drink it, and consumption by gender and age.
Japan Coffee Consumption Trends by Location (2002-2020)
Source: Basic Survey on Coffee Demand Trends by Japan Coffee Association
| Year | Total | Home | Coffee shop | Restaurant | Office/School | Vending/Vehicle |
|---|---|---|---|---|---|---|
| 2002 | 10.03 | 6.27 | 0.34 | 0.14 | 2.5 | 0.76 |
| 2004 | 10.43 | 6.42 | 0.38 | 0.12 | 2.69 | 0.76 |
| 2006 | 10.59 | 6.38 | 0.33 | 0.11 | 2.78 | 0.93 |
| 2008 | 10.6 | 6.52 | 0.22 | 0.1 | 2.77 | 0.91 |
| 2010 | 10.93 | 6.74 | 0.23 | 0.09 | 2.86 | 0.94 |
| 2012 | 10.73 | 6.85 | 0.21 | 0.11 | 2.56 | 0.93 |
| 2014 | 11.13 | 7.04 | 0.19 | 0.12 | 2.71 | 1.01 |
| 2016 | 11.09 | 6.89 | 0.37 | 0.21 | 2.6 | 0.95 |
| 2018 | 10.62 | 6.54 | 0.33 | 0.17 | 2.56 | 0.92 |
| 2020 | 11.53 | 7.55 | 0.26 | 0.15 | 2.32 | 1.09 |
Further macro analysis focusing on demographics and consumption habits in the Japanese coffee market.
Coffee Consumption per Week by Gender and Age (2020)
Source: Basic Survey on Coffee Demand Trends by Japan Coffee Association
| Age Group | Average (Men & Women) | Men | Women |
|---|---|---|---|
| JHS & HS | 11.53 | 2.88 | 1.78 |
| 18-24 | 11.53 | 6.46 | 3.29 |
| 25-39 | 11.53 | 10.9 | 8.42 |
| 40-59 | 11.53 | 13.76 | 13.7 |
| Over 60 | 11.53 | 14.51 | 13.48 |
Third part of macro analysis, detailing market size and growth in the Japanese coffee market.
Secondary Research - PEST Analysis
PEST Analysis
Political Factors
- •Increase in consumption tax
- •Tighter regulations on smoking in restaurants (impacted by Tokyo Olympics)
Economical Factors
- •Small Business, Few Employees
- •Providing drip coffee for a major convenience store chain
- •Providing bottled coffee from beverage manufacturers
- •Barriers to entry are low, competition is fierce, and new business models are springing up one after another
- •Raising product prices to meet rising logistics costs (COVID19)
Social Factors
- •Increase Working From Home, Decrease Working at office
- •Diversification of delivery methods (full-service and self-service) to meet consumer preferences
- •Movement toward disclosure of the entire value chain to consumers (impact of SDGs)
- •Evolution of coffee, diversification of consumer choices ⇒ '1st wave', '2nd wave', '3rd wave'
- •Can't talk much in stores (COVID 19)
Technological Factors
- •Cashless payments, unattended customer service, and other contactless technologies are changing the customer experience
- •Evolution of roasting machines for home use as well as for restaurants
PEST analysis (Political, Economic, Social, Technological) examining the macro-environmental factors affecting the Japanese coffee market.
Secondary Research - Competitive Analysis
Nestle(Home and Office)
Business Model Canvas
Mission/Vision: We unlock the power of food to enhance quality of life for everyone, today and for generations to come
Business Model: Sell instant coffee, monthly subscription
Customer Segments: People who want to drink authentic coffee at home or office, popular in Japan
Price: ¥20~100 / 1 cup
Unique Value Proposition: Nescafe system (Barista Machines just setting cup) taste control by linking smartphone with the machine, capsule type
SWOT Analysis
Strengths
- • Huge brand recognition and market share
- • Strong distribution network
- • Innovative Nescafe system with app integration
Weaknesses
- • Dependency on instant coffee market
Opportunities
- • Growing home coffee market
- • Subscription model expansion
Threats
- • Competition from specialty coffee brands
Ajinomoto AGF(Home)
Business Model Canvas
SWOT Analysis
Strengths
- • Strong domestic distribution network
- • Eagerness for technological innovation
Weaknesses
- • Vulnerability to raw material cost increases
Opportunities
- • Growing home coffee market
Threats
- • Global coffee bean price inflation
Starbucks Coffee Japan(Shop)
SWOT Analysis
Strengths
- • Strong brand recognition and 'Third Place' concept
- • Digital app-based reward program
Weaknesses
- • High real estate costs in prime locations
Opportunities
- • Expansion of drive-through stores
Threats
- • Rising land prices
- • Intensified competition with full-service coffee shops like Komeda
Komeda Coffee(Shop)
SWOT Analysis
Strengths
- • Unique position resistant to price competition
- • Full-service business model with long stay tolerance
Weaknesses
- • Limited appeal to younger urban demographics
Opportunities
- • Strong support in regional cities and senior demographics
Threats
- • Competition from self-service coffee chains
Seven Eleven(Takeout)
SWOT Analysis
Strengths
- • Massive store network (channel) maximization
- • High-frequency customer touchpoints
- • High-quality coffee at low prices with overwhelming convenience
Weaknesses
- • Limited seating and experience compared to coffee shops
Opportunities
- • Market disruption through convenience
Threats
- • Competition from other convenience store chains
Suntory(Takeout and Office)
SWOT Analysis
Strengths
- • Leadership in RTD (Ready to Drink) market with BOSS brand
- • Control of Japan's unique vending machine culture channel
Weaknesses
- • Dependency on vending machine infrastructure
Opportunities
- • Expansion of RTD market
Threats
- • Shift in consumer preferences toward fresh coffee
Lavazza(Home, Shop)
SWOT Analysis
Strengths
- • Long history-backed quality
- • Premium espresso culture embodiment
- • Italian lifestyle symbol
Weaknesses
- • Limited market penetration in Japan compared to global brands
Opportunities
- • B2B and premium retail market presence
Threats
- • Competition from local and global premium brands
Primary Research - Field Observation
Field observation at a coffee shop founded by a British-Japanese couple, observing customer behaviors, interactions, and the coffee shop as a 'third place' for social interaction.
Field observation at an old-fashioned coffee shop, observing traditional coffee shop atmosphere and customer behaviors.
Observations from a supermarket, focusing on coffee product placement and consumer behavior.
Primary Research - User Interview
User interviews conducted to understand how people in Japan drink coffee, their preferences, pain points, and motivations. Multiple interview sessions were conducted to gather comprehensive insights.
Second user interview session gathering insights about coffee drinking habits and preferences.
Third user interview session exploring coffee consumption patterns and motivations.
Fourth user interview session collecting comprehensive insights about coffee preferences and behaviors.
Findings
Key findings include: Coffee drinkers enjoy the taste and aroma; Many people in Japan drink coffee when they are at home or at work; People who drink coffee multiple times a day are concerned about the cost and the convenience; People who drink coffee few times a day or a week want to drink authentic regular coffee to enjoy its taste and aroma; People want to drink coffee while working in the office or carry coffee to different places; Coffee shop is the third place.
Coffee Consumption Patterns
- •Many people in Japan drink coffee when they are at home or at work
- •People who drink coffee multiple times a day are concerned about the cost and the convenience
- •People who drink coffee few times a day or a week want to drink authentic regular coffee to enjoy its taste and aroma
Coffee Experience & Quality
- •Coffee drinkers enjoy the taste and aroma
- •People want to drink coffee while working in the office or carry coffee to different places
Coffee Shop as Social Space
- •Coffee shop is the third place
- •Great place for conversation
- •A place to read books
First iteration of affinity diagram, clustering user research data into themes and patterns.
Second iteration of affinity diagram, further organizing insights into themes and clusters to identify key patterns and opportunities.
Taro
45 years old, Product Planner
A personable, health-conscious product planner who views coffee as a psychological ritual for work focus.
Click to view details
First persona profile representing a type of coffee drinker in Japan, created based on research findings.
Ken
32 years old, UI/UX Designer
An efficiency-driven creative who enjoys technical brewing methods as a form of active meditation.
Click to view details
Second persona profile representing another type of coffee drinker in Japan, focusing on different consumption patterns and motivations.
Yui
26 years old, Marketing Coordinator
A social explorer who views coffee culture as a means of discovering new neighborhoods and trends.
Click to view details
Third persona profile representing yet another type of coffee drinker in Japan, with distinct preferences and behaviors.
Journey Map Structure
Vertical Axis
Emotional state throughout the coffee shop visit experience
Scale: -2 ~ 2
Horizontal Axis
Stages of the coffee shop visit journey
Graph Type
Line graph showing emotional journey throughout the experience
1
1.0
Planning
😊Actions: Want to work on the weekends while having a change of scenery. Decide to go to coffee shop and work there.
Thoughts
- “I don't want to stay home since I have been home all week.”
Touchpoints
- •Home
- •Mental Decision
2
2.0
Considering coffee shop
😊Actions: Check Instagram and decide where to get coffee. Get ready to go out (makeup). Head for the coffee shop by foot.
Thoughts
- “want to go someplace where I can focus on my work.”
- “want to go to a stylish place.”
- “To go to a fashionable place, need makeup.”
Touchpoints
- •Cosmetics
- •Street
3
-1.0
Considering menu
😞Actions: Enters the coffee shop. Wait in line. Look at the menu on the desk and decide an order.
Thoughts
- “there are too many people. It takes time.”
Touchpoints
- •Store Entrance
- •Queue
- •Menu
Pain Points
- •It's hard to enjoy a stylish atmosphere when it's full of people. She's hoping it's not full of people there.
- •get frustrated waiting in lines
4
-1.5
Purchasing
😞Actions: talk to the Barista and order coffee and others. Decide how to pay and wait for coffee. Receive coffee.
Thoughts
- “The person in front of me was also waiting for coffee.”
Touchpoints
- •Barista
- •POS Register
- •Payment
Pain Points
- •Process Friction: The wait continues after ordering.
5
-2.0
Find seat
😞Actions: Take her seat and drink coffee and work. Find seat.
Thoughts
- “There are too many people”
Touchpoints
- •Seating Area
- •Crowd
Pain Points
- •get frustrated waiting in lines and not being able to find a seat easily.
Opportunities
- •It is perceived as a place where you can work in a coffee shop.
Detailed journey map of a typical visit to coffee shop. This journey map illustrates the coffee drinking experience, from discovery to consumption, identifying touchpoints, emotions, pain points, and opportunities for improvement. The map structure includes vertical axis (emotions/satisfaction), horizontal axis (stages/touchpoints), and a graph visualization showing the emotional journey throughout the experience.
Key Findings
Key findings synthesized from the research, including: Coffee drinkers enjoy taste and aroma; Many people drink coffee at home or work; Cost and convenience concerns for frequent drinkers; Desire for authentic coffee for occasional drinkers; Coffee shop as third place.
Key Findings
Additional key findings exploring coffee consumption patterns and user motivations.
Key Findings
Further key findings detailing market insights and user behaviors.
Key Findings
Additional insights into coffee preferences and consumption habits.
Key Findings
Comprehensive key findings summarizing research insights and opportunities.
Key Findings
Final key findings highlighting strategic recommendations and next steps.
Recommendations
Gather more participants (number of interviewees, rural area, various age range)
Advertising campaigns and communication strategies centered on television, social network services, and promotions (people are not going to go where they don't know what they want to get)
Sales promotion of decaffeinated coffee with authentic taste and aroma
Product development and sales promotion of a water bottle that does not oxidize even when filled with coffee
Promotion or Subscription campaign with mag manufacturers (thermo mugs that are pleasant to the touch without a metallic feel, Thermo mug that continuously displays the correct temperature)
Learnings
The primary goal was to know what the users think, their needs and concerns, and what insights they have about the current services.
As per the information of the target audiences, I created a persona to base my decisions on.