Marketing Research for Example Hot Cup Cafe - Essay Example

?MARKETING RESEARCH 0 INTRODUCTION 1 Background to the Market Problem Hot Cup is a Coffee Shop with about nine branches across the country but none on a university campus. Hot Cup is now attempting to a university campus. To this end, Hot Cup is up for a very stiff competition as there are already well established coffee shops on campus. To this effect, it is extremely important that a field survey be conducted to feed the company with vital information on who it can penetrate the already vibrant market and if possible, grow to the top in the nearest future. The market problem therefore is how Hot Cup can beat existing competition in the university campus. 1.2 Research Aim This survey was conducted along three major aims. These are: 1. Identify current trend of coffee shop patronage among students on the university campus including choice of coffee products and peak times of patronage. 2. Seek new and innovative ways of operating a coffee shop on campus to make Hot Cup a preferred coffee shop among students. 3. Explain potential factors that may act as setbacks and hinder the successful establishment and running of Hot Cup on the university campus. 2.0 METHODOLOGY 2.1 Research Strategy and Sample Group Saunders et al., (2003) explain that there are six major research strategies. These are experiment; survey; grounded theory; ethnography; action research and case study. The research strategy used in this research work however was a survey. In the view of Trochim (2006), “The broad area of survey research encompasses any measurement produces that involve asking questions of respondents.” In surveys, the views of selected respondents are made to represent the view of the larger people they represent. In this research therefore, the views of a group of students who answered questions from me on marketing factors to put in place for Hot Cup are going to represent the views of the larger university folks. The reason for choosing students as the sample group was that students form the majority, if not the only customers for various coffee shops on campus. In all, there were twenty (20) respondents, all of who were eighteen years and above. There were two types of random sampling techniques in place to get the respondents. The first technique selected ten (10) males whereas the second technique selected ten (10) females. In selecting the respondents, I used the first twenty (20) people (10 males and 10 female) who entered the lecture hall at a specific hour of the day. 2.2 Research Instrument and Data Collection The research instrument used in this survey was questionnaire. Milne (1999) explains that “questionnaires come in many different forms from: factual to opinion based, from tick boxes to free text responses.” The questionnaire used in this survey possesses almost all that Milne stated and even more. Through the questionnaire, the views of students on their expectations of the new coffee shop, Hot Cup were solicited. Students were asked to point out through both close ended and open ended questions, the specific innovations they expected to see as the new coffee shop was coming to campus. They were also asked about their most preferred products from the new coffee shop competitor. Students were also asked about the time of the day they patronized the coffee shop most. What is more, students were asked questions on their most cherished business ethics and any foreseeable setbacks that could roll back the efforts of Hop Cup to be a vibrant force in the coffee shop business on campus. All these data were collected to enable the new entrant make decisive decisions; especially in terms of the best marketing strategies they needed to put in place to meet the expectations of students. The decision to use questionnaire as the most preferred research instrument was informed by a number of reasons. In the first place, because the questionnaire contained the set of questions, it was very easy to analyze the responses received from the respondents. Again, it was stressful conducting the questionnaire because I did not have to contact respondents one after the other to collect data. I distributed the questionnaires to the respondents and gave them a set date, by which time all the questionnaires were collected. Finally, the use of the questionnaire offered the respondents ample time to conduct their own internal research (where needed) before attempting to answers the questions. This took pressure away from the respondents. These merits not withstanding, the respondents did not have the opportunity to ask for clarity to questions they found confusing. Again, they were limited with their scope of answers since most of the questions were close ended and did not offer respondents to explain their views. 2.3 Research Ethics Because this pilot survey was an academic exercise and also as a requirement for all researches, the researcher ensured that research ethics were practiced. In the first place, no respondent was forced to take part in the research work. Though in the sampling technique the researcher targeted the first ten (10) males and the first ten (10) females who entered the lecture hall at a specific hour of the day, students who were reluctant to be part of the research work were duly exempted and their places taken by those who were willing to be part of the research (even though they fell outside the first ten (10) students). What is more, respondents were made to keep their responses anonymous by not writing their names on the questionnaires. Again, the research was conducted in an open and public place, which was the classroom. Finally, questions on the questionnaire were printed in such a way that they were legible to read so that respondents did not have to strain their eyes when reading. 3.0 PRESENTATION AND ANALYSIS OF FINDINGS Several data were collected. However these were grouped into five thematic areas to reflect factors needed for marketing decision making. This section of the report presents data from the four thematic areas and brief analysis of the data after each theme. 3.1 Preferred Coffee Shop Products From the questionnaire, students were supposed to choose one of the five products, the ones they patronized in most from other coffee shops. The pie below represents responses from respondents. The selection of product is a very important aspect of marketing. Indeed, consumers are becoming more and more enlightened on the need to go after their needs and not just their wants. For this reason, identifying the best needs of a target consumer group is very important. Without this, a marketer will only be trading in something that no one is intrested in and thus no one will purchase. To this effect, Hot Cup has been exposed to the right kind of products to bring on board through the responses of the respondents. Clearly the company will do better if it focuses more on brewed coffee than if it focuses on chocolates. 3.2 Time of the Day Students Used the Coffee Shop Most I asked students the time of the day they found themselves in the coffee shop most. The chart below represents answers given by students. One serious problem that most marketers face is that they always find themselves at the right place at the wrong time. This is to say that they make themselves available at times that their consumers do not need them. This is the reason why I felt it prudent to fact in the most preferred time of using the coffe shop in the research. From the data, Hot Cup will make much progress if it focuses its service on mid-morning and nights; rather than early morning and evenings. This means that the company should factor in having both day and night workers. 3.3 Most Cheerished Business Ethics The researcher sought from the respondents, their most cheerished business ethics. In simple terms, the question; “what ethics do you want to see in place in a new coffee shop?” was asked. Below are answers of respondents. Ethics Number of Respondents Percentage Customer appreciation Time conciousness Good customer relations Neatness and cleaniness Dynamism in mode of operation 3 6 4 5 2 15 30 20 25 10 Total 25 100 The table above shows closely related percentages of number of stduents who prefer certain kinds of business ethics from the new coffee shop. The meaning of the closeness of the results is that the company must strive to possess almost all the ethics discussed above. This is because looking closely at the ethics, they all reflect in the lifestyle of students and in the need for students to be both appreciated and cared for. 3.4 Expected Innovativeness into the Coffee Shop Business The researcher asked the students to partake in the running of the new coffee shop by suggesting specific innovativeness they expect to see in Hot Cup’s operations. To most of the students, these were innovations that were lacking in existing coffee shops and so if incorporated by Hot Cup, would put it a step ahead of its competitors and enhance prosperous marketing because it would become the preferred coffee shop destination for students. The suggested innovativeness includes: 1. Introdcing an ordering system whereby students would order for products before getting to the shop. According to students, this will safe a lot of time spent at the shop. 2. Embarking on door to door service especially during weekends and holidays. 3. Having satellite branches in almost every faculty of the university. 4. Introducing credit billing system whereby students can pay afore hand and be served for say one month without having to pay in cash everyday. 5. Holding as many customer appreciation programs as possible. 6. Running a restaurant under the same departmental shop as the coffee shop that will bare the vision and marketing strategies as Hot Cup. 4.0 CONCLUSION AND RECOMMENDATIONS 4.1 Conclusion This has been a pilot survey on the decision of Hot Cup Coffee shop to enter the university campus. As a newcomer and with several competitors already in the system, this research was very justified and timely to ensuring that the company was made aware of the challenges that were ahead of it and how it could overcome the challenges. The research was made possible by the assistance of twenty (20) respondents, who responded to questions asked by the use a questionnaire. Basically, responses gathered from respondents show that the coffee shop business is a viable and lucrative one on campus. However, there is the need to meet the needs of students if any new coffee shop wanted to make it and make it big. For instance, students have specific kinds of products they trade in most and specific times of the day they patronize coffee shops most. Finally, students expect to see a wide range of innovativeness in the operations of the new coffee shop 4.2 Recommendations Based on the conclusions drawn above, I wish to make the following suggestions 1. Hot Cup should take the bold step into starting a branch at the university campus. 2. Hot Cup should deal in as many coffee products as possible if it wants to meet the diverse preferences of students. 3. Hot Cup should run on day and night system as there are as many day time consumers as there are night consumers. 4. It is important for the company to introduce an ordering system whereby students would order for products before getting to the shop. According to students, this will safe a lot of time spent at the shop. 5. The company should embark on door to door service especially during weekends and holidays. 6. Hot Cup should put customers before profit and customers will bring the profit. 7. Marketers of the company should reach students closely by having satellite branches all over campus. REFERENCE LIST Saunders, M., Lewis, P. and Thornhill, A. (2003). Research Methods for Business Students. Harlow: Pearson Education Limited. Trochim W.K (2006). Deductive and Inductive Reasoning. Accessed May 1, 2011 from http://www.infobarrel.com/deductive_and_inductive_reasoning Milne J, 1999, Questionnaire: Advantages and Disadvantages. Centre for CBL in Land Use and Environmental Sciences. Aberdeen: University Printing Press. Available online at http://www.icbl.hw.ac.uk/ltdi/cookbook/info_questionnaires/index.html Read More