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FIC Member Tammy Katz Discusses Starbucks' Use of Big Data with CNBC

FIC member Tammy Katz, adjunct professor of marketing and logistics in the Fisher College of Business, was recently featured in a CNBC article discussing Starbucks' use of big data to track consumer trends.

Using consumer data, the coffee chain designed its new line of products to complement the habits it gleaned from its own stores. Basically, the company says it studied how its customers ordered coffee, lattes and tea while in Starbucks locations and used that data to create K-Cups and bottled beverages to sell in grocery stores.

The company touted the new grocery line at a marketing event in Manhattan last week, where baristas shared stats as they poured samples.

For instance, some 50 percent of the coffee chain's tea-drinking customers skip the sugar, and 25 percent don't add milk to their iced coffee. To cater to those palates, Starbucks created two unsweetened ice tea K-Cups — Mango Green Iced Tea and Peachy Black Tea — and recently launched unsweetened and sweetened black iced coffee without milk or added flavors.

It also knows that customers who prefer flavored coffee and lattes are more likely to add milk and sugar to their cup. So, Starbucks now includes sweetened dairy packets — a combination of powdered milk and sugar — in many of its K-Cup packs.

Read the article here.