Marketing Survey for Gourmet Cupcakes - Research Paper Example

Research Report The following report contains the marketing research results for the Gourmet Cupcake Bakery Research Project, conducted by the student Customer Name as a class exercise for the marketing course Marketing 412 for Professor Name. 2. Table of Contents 3. Executive Summary 1 3.1 Objectives 2 3.2 Results 2 3.3 Key Findings 2 3.4 Conclusions and Recommendations 2 4. Introduction 3 4.1 Gourmet Cupcakes Bakery Company Background 4 5. Methodology 4 5.1 Qualtrics Software Tool 5 6. Results 5 6.1 Gourmet Cupcakes Bakery Survey Responses 6 7. Limitations 13 8. Recommendations and Conclusions 14 3. Executive Summary The purpose of the following report is to present the results of a consumer survey of attitudes and purchasing intention among consumers in regards to the Gourmet Cupcakes Bakery product offering. The Gourmet Cupcakes Bakery currently operates exclusively in the United States; however, global opportunities exist for this product, as the survey results indicate a very high level of satisfaction with the quality and taste of the cupcakes. 3.1 Objectives The objectives of this research report were to ascertain the perceived value and level of satisfaction with the Gourmet Cupcakes Bakery product offering among consumers. The research report author utilized the Qualtrics Survey Software tool to compile and tabulate responses from 29 consumers. The results are displayed in table form in section 6 of this report. 3.2 Results The results of the survey indicate a very high level of satisfaction with the product offering. 77 percent of the respondents indicated that they were very satisfied with the Gourmet Cupcakes Bakery product offering. 3.3 Key Findings The report indicates that the product has a strong appeal among the consumers surveyed. It also indicates that the quality of the ingredients used and the exceptionally delicious taste of the cupcakes remain the key competitive advantages for the Gourmet Cupcakes Bakery product offering. In addition, the results indicate that the Gourmet Cupcakes Bakery could position the product offering as a luxury item in key luxury market segments both domestically and internationally. 3.4 Conclusions and Recommendations The research report author concludes that the product is a very strong offering and that consumer appeal is high. The research report author recommends that the Gourmet Cupcakes Bakery undertakes an expansion strategy into the key markets of Canada, the United Kingdom, Germany, New Zealand, Australia, China, Japan and South Africa. Opportunites exist to position the product as a luxury item in these markets. 4. Introduction The purpose of the following report is to put forward a study that gives quantitative insight into current consumer response toward the product offering, gourmet cupcakes, from the Gourmet Cupcake Bakery. The report intends to identify current and future opportunities for the Gourmet Cupcake Bakery to expand its operations beyond its present location in the United States to an international market. The report also points to a secondary opportunity for the Gourmet Cupcake Bakery to co-brand with specialty food stores in the United States and internationally to build sales and develop a strong brand reputation. To date the Gourmet Cupcake Bakery has focused its operations exclusively in the United States market. However, international demand for the Gourmet Cupcake Bakery product can be stimulated through a series of strategic partnerships and co-branding initiatives. Key target markets exist in Canada, the United Kingdom, Germany, New Zealand, Australia, China, Japan and South Africa. The report seeks to highlight future opportunities that serve the Gourmet Cupcake Bakery strategic vision. In order to accomplish the stated goals of the project, the research report author employed the web based Qualtrics survey software to create an online survey of consumer responses to the current gourmet cupcake product offerings produced by the Gourmet Cupcake Bakery. The Qualtrics software allowed the research report author to perform quantitative statistical analysis, create a survey database and export the results to a simple Excel document for further examination. The result is a comprehensive and thorough analysis of consumer purchasing intention for the product offered by the Gourmet Cupcake Bakery, using its present branding strategy. Respondents were surveyed in order to ascertain their purchasing behavior in response to this product. Of particular interest to the researcher, beyond the obvious instances of favorable purchase intention or likelihood of purchase, were the situations in which the product would be viewed most favorably by the consumer. 4.1 The Gourmet Cupcake Bakery Company Background The Gourmet Cupcake Bakery was founded in 2006 and since then has grown to operate twelve locations in the United States. The product offering and competitive advantage of the company remains its commitment to the use of quality ingredients in all of its cupcakes and its innovative recipes. In addition to the spectacular taste of its most popular products, including the company’s top seller for three years in a row The Devil – a quadruple chocolate layered cupcake that is sold complete with a pair of little red horns – the Gourmet Cupcake Bakery prides itself on its innovative and strategic attention to the appearance and packaging of its products. The Gourmet Cupcake Bakery’s mission is to become the industry leader in specialty baked goods for both the domestic and the international markets. 5. Methodology The research report author conducted a consumer survey of attitudes toward the product offering from the Gourmet Cupcake Bakery, using the Qualtrics Survey Software tool to compile and analyze the data. A total of 29 responses were received and input into the Qualtrics Research Suite. The Qualtrics software tool then calculated the minimum value, maximum value, mean, variance and standard deviation of the response data. The questions posed to the survey respondents were as follows: 1. To what extent would you consider purchasing items as gourmet cupcake bakery? 2. Would a special price discount draw you into this type of specialty store? 3. How often would you utilize a specialty store of this nature? 4. Which of the Special Occasions would you buy from a gourmet cupcake bakery? 5. Rate these components in importance for you when purchasing baked goods? 6. Please indicate how well the following statements describe Gourmet Cupcake Bakery? 7. Please select the face that best shows your satisfaction with Gourmet Cupcakes Bakery? 8. How popular are cupcakes among your family members? 9. How many children (under the age of 18) are currently living in your house? 10. What is your combined annual household income? The results of the survey are presented in table form in section 6 of this report. 5.1 Qualtrics Software Tool The Qualtrics Software tool allowed the research report author to conduct a thorough and professional statistical analysis of the survey response data using minimal time and resources. The results were downloaded into an Excel spreadsheet for further analysis and documentation. 6. Survey Results The results of the survey responses to the preceding 10 survey questions can be found in section 6. 6.1 Gourmet Cupcake Survey Responses Last Modified: 02/20/2012 1. To what extent would you consider purchasing items as gourmet cupcake bakery? # Question 1 2 3 4 5 Responses Mean 1 Unlikely:Likely 1 1 2 8 17 29 4.34 Statistic Unlikely:Likely Min Value 1 Max Value 5 Mean 4.34 Variance 1.02 Standard Deviation 1.01 Total Responses 29 2. Would a special price discount draw you into this type of specialty store? # Answer Response % 1 Very Likely 12 41% 2 Likely 17 59% 3 Neutral 0 0% 4 Not Likely 0 0% 5 Very Unlikely 0 0% Total 29 100% Statistic Value Min Value 1 Max Value 2 Mean 1.59 Variance 0.25 Standard Deviation 0.50 Total Responses 29 3. How often would you utilize a specialty store of this nature? # Answer Response % 1 Once a week 4 14% 2 Once a month 11 38% 3 More than 6 times year 12 41% 4 Once a year 2 7% 5 Never 0 0% Total 29 100% Statistic Value Min Value 1 Max Value 4 Mean 2.41 Variance 0.68 Standard Deviation 0.82 Total Responses 29 4. Which of the Special Occasions would you buy from a gourmet cupcake bakery? # Answer Response % 1 Birthdays 10 45% 2 Anniversary's 2 9% 3 General Holidays such as Christmas, Valentines Day , St. Patrick's Day, etc. 2 9% 4 Only Children's Birthdays 0 0% 5 Office Events 0 0% 6 Don't need a special occasion 8 36% Total 22 100% Statistic Value Min Value 1 Max Value 6 Mean 3.09 Variance 5.42 Standard Deviation 2.33 Total Responses 22 5. Rate these components in importance for you when purchasing baked goods: # Question Not at all Important Very Unimportant Neither Important nor Unimportant Very Important Extremely Important Responses Mean 1 Taste 0 1 0 3 18 22 4.73 2 Appearance 0 1 0 14 7 22 4.23 3 Packaging 0 1 13 6 2 22 3.41 4 Ingredients Used 1 2 8 8 3 22 3.45 5 Price 0 1 6 11 4 22 3.82 6 Convenience of Ordering & Pick Up 0 1 3 13 5 22 4.00 Statistic Taste Appearance Packaging Ingredients Used Price Convenience of Ordering & Pick Up Min Value 2 2 2 1 2 2 Max Value 5 5 5 5 5 5 Mean 4.73 4.23 3.41 3.45 3.82 4.00 Variance 0.49 0.47 0.54 1.02 0.63 0.57 Standard Deviation 0.70 0.69 0.73 1.01 0.80 0.76 Total Responses 22 22 22 22 22 22 6. Please indicate how well the following statements describe Gourmet Cupcake Bakery... # Question Not at all Slightly Moderately Very Responses Mean 1 This is a rare specialty store 2 1 11 8 22 3.14 2 This product is for everyone 1 1 7 13 22 3.45 4 This product looks like it is custom made 0 0 4 18 22 3.82 5 This is something that others will not have 0 3 8 11 22 3.36 7 This product is special occasions only 5 9 5 3 22 2.27 8 This is different and unusual 0 6 10 6 22 3.00 10 This product has great WOW factor 0 2 9 11 22 3.41 Statistic This is a rare specialty store This product is for everyone This product looks like it is custom made This is something that others will not have This product is special occasions only This is different and unusual This product has great WOW factor Min Value 1 1 3 2 1 2 2 Max Value 4 4 4 4 4 4 4 Mean 3.14 3.45 3.82 3.36 2.27 3.00 3.41 Variance 0.79 0.64 0.16 0.53 0.97 0.57 0.44 Standard Deviation 0.89 0.80 0.39 0.73 0.98 0.76 0.67 Total Responses 22 22 22 22 22 22 22 7. Satisfaction: Please select the face that best shows your satisfaction with Gourmet Cupcakes Bakery. # Answer Response % 1 Very Dissatisfied 0 0% 2 Dissatisfied 0 0% 3 Neither 0 0% 4 Satisfied 5 23% 5 Very Satisfied 17 77% Total 22 100% Statistic Value Min Value 4 Max Value 5 Mean 4.77 Variance 0.18 Standard Deviation 0.43 Total Responses 22 8. How popular are cupcakes among your family members? # Answer Response % 1 Not Popular 0 0% 2 Somewhat Popular 8 28% 3 Popular 11 38% 4 Very Popular 10 34% Total 29 100% Statistic Value Min Value 2 Max Value 4 Mean 3.07 Variance 0.64 Standard Deviation 0.80 Total Responses 29 9. How many children (under the age of 18) are currently living in your house? # Answer Response % 1 0 5 17% 2 1 11 38% 3 2 8 28% 4 3 + 5 17% Total 29 100% Statistic Value Min Value 1 Max Value 4 Mean 2.45 Variance 0.97 Standard Deviation 0.99 Total Responses 29 10.  What is your combined annual household income? # Answer Response % 1 under $20,000 1 5% 2 20,000-39,999 0 0% 3 40,00-59,999 5 23% 4 60,000-79,999 3 14% 5 80,000-99,999 3 14% 6 100,000-109,999 4 18% 7 110,000 - up 6 27% Total 22 100% Statistic Value Min Value 1 Max Value 7 Mean 4.95 Variance 3.19 Standard Deviation 1.79 Total Responses 22 7. Limitations The main limitation of the current survey remains the size of the survey sample. At 29 respondents, the survey sample may indeed be too small to extrapolate the data received. In addition, the questions posed in the survey did not offer enough insight into purchasing decisions and the special occasions list remains incomplete as it is missing weddings as potential purchasing motivators. 8. Recommendation and Conclusions The results of the initial Gourmet Cupcake Bakery consumer survey indicate that the company’s brand benefits from treatment as a rare niche item with luxury appeal. As such, the future opportunities for the Gourmet Cupcake Bakery lie in a marketing strategy that positions the product exclusively in specialty stores, so that consumers associate the product with status, class, prestige, and fine baked goods of exceptionally high quality. Expansion opportunities to reach this segment exist in several different countries besides the United States, including Canada, the United Kingdom, Germany, New Zealand, Australia, China, Japan and South Africa. The survey also indicates that the competitive advantage of the Gourmet Cupcakes Bakery remains its commitment to high quality ingredients and excellent taste in its cupcakes, as 77 percent of the survey participants responded “very satisfied” when asked to describe their level of satisfaction with the physical product. Continued commitment to innovative recipes and delicious cupcake products will serve the growth strategy of the Gourmet Cupcakes Bakery both in the United States and beyond. Read More