2. Agenda Introduction/Motivation Research Design Secondary Data Results/Analysis Recommendations Questions

3. Introduction/Motivation “There’s an Ap for that!” Caribou’s current Smartphone experience Competition in the Smartphone space Decisions that need to be made Research Objectives to assist decision making

4. Secondary Data Sources Universal McCann and AOL Report on Smartphone usage

5. Secondary Data Sources

7. Insight Express: Mobile Research on Research Mobile Phone penetration Internet penetration Gen Y (18-24) 85%87% Gen X (25-44) 82%83% Younger Boomers (45-54) 80%65% Older Boomers (55-64) 79%65%

8. Focus Group Purpose: Smartphone usage Consumer preferences for a Caribou Coffee application Size: 5 respondents Criterion: Currently use a Smartphone and are familiar with application downloads Platforms 3 iPhone 1 Palm Pre1 Google

9. Focus Group Results Multiple application downloads: FREE Spend maximum time using the internet Learn about apps via friends or ads Convenience of using mobile web, from 2-5 hours a day Caribou Coffee specifics: location, store hours, order via phone, review menu items, pay in advance, incentives/ deals

10. Survey Electronic survey via email – Time constraints – Perceived greater response due to easier accessibility – Easier to interpret results Sampling procedure – Emailed to 65 friends/ co-workers → 82% response rate – CONVENIENCE Sampling NOTE: It is assumed that the sample is representative of the entire population

11. Survey Questionnaire http://www.zoomerang.com/Survey/?p=WEB229VD547PEU

12. Survey Questionnaire Challenges: Non responders: 18% - But we had 53 respondents in four days Pre-test survey if time permitted Assumption of sample size representative of population – Preferences and attitudes limited to local population

13. H1: Mobile Web vs. App Very Easy = 2 Easy = 1 Neither Easy Nor Difficult = 0 Difficult = -1 Very Difficult = -2 P = 0.032P = 0.13P = 0.044

14. H2: App Feature Importance

15. H2: Likelihood of more store visit Featuresstore locatormenuCouponorder in advance Mean for all samples1.582.111.742.35 Likely to shop more at CaribouNoYesNoYesNoYesNoYes mean1.541.591.542.312.091.622.912.16 p value0.430.0360.0460.028

16. H3: Application Usage

17. Results indicate iPhone users download more applications than other Smartphone users Average applications installed on iPhone compared to other Smartphone handsets

18. H4: Ordering via Mobile Test reveals that owning an iPhone handset does not make a person more likely to order coffee using their mobile phone

19. H4: Loyal vs. non-loyal

20. H5: Increase in Caribou Frequency Results indicate a statistical relationship between people who would use the order feature and an increase in their shopping frequency

21. Recommendation Two Phases Approach 1.Phase I – Standalone iPhone Based Application 2.Phase II - Standalone Android Based Application

22. Recommendation – Phase I Supporting Platform – iPhone Format – Standalone Application

23. Recommendation – Phase I Major Features 1.Store Locator 2.Order in Advance 3.Mobile Coupons 4.Online Menu

24. Recommendation – Phase II Supporting Platform – Android Format – Standalone Application