Marketing Strategy of Coffee Making Equipment Manufacturers in China - Assignment Example

Marketing ResearchCoffee culture has been spreading quickly around the world. Coffee is both being used as a good alternative to tea and is also consumed in various ways. It is used with snacks and other items and sometimes, it is just consumed on its own. Now, its appeal has gone beyond the wintry regions. Due to the spread of this coffee culture, various coffee shops are being established which translates into a greater need and demand for high-end coffee brewing equipment.The market for such high-end coffee brewing equipment is increasing and one such market outside of North America exists in China.

“In the 1990s, the main consumers of roasted coffee in China were expatriates. Germans wanted one kind of roast, Italians wanted it another way and so on, making it hard for a roaster to find one blend to please all”. (http://www.teacoffeeasia.com/news.asp?id=637)The above-mentioned statement bears testimony to the fact that market in China has braced itself for the coffee boom. But to fully know the market there of such equipment, there is a need to conduct a proper market research there as well.

This research should be conducted using both primary and secondary sources. The data needs to be collected and collated so that we could gauge the market for such research.The following primary sources could be used:1. Questionnaires2. Interviews3. Consumer panels4. Stock counting 5. ObservationAll of these afore-mentioned types of primary sources have their own advantages and disadvantages. The main advantages are:1. They elicit direct responses.2. They provide accurate data.3. They give the researchers a chance to have direct interaction with the target market.

The main disadvantages are:1. They might be biased.2. Costly to conduct.3. Difficult in terms of accessibility.4. They might give one a one-sided picture of things.The secondary sources that are also called the ‘desk research’ methods include the following: 1. Newspapers and magazines 2. Government reports 3 Official statistics 4. Specialist journalsThe main advantages of such a method are:1. Less costs involved.2. Fewer hassles.3. Information is authenticated.4. Easy accessibility.

The main draw-backs are: 1. Data might be biased. 2. It could be out-dated.However, the marketing strategy that I would suggest to Hanks would be a combination of both these research methods although the primary research sources are more reliable in this case as coffee culture is a relatively new trend and data might not be available on it in old statistics and all.Thus, based on the research conducted and the information gathered, it is safe to assume that the target market in China is large and any business of high-end coffee brewing equipment will generate good amounts of profit.

It is a new market, and everyone is rushing here," said Solomon Rutega, a Ugandan government representative who promotes Uganda's coffee to the relatively unsaturated Chinese market, which takes about 1.5 tons of beans per month. You know a million cups is a million bucks. It is a new market, so it's exciting." (http://www.teacoffeeasia.com/news.asp?id=637) Therefore, Hanks should safely conclude that the Chinese market has a lot of potential.ReferencesTea & Coffee Asia---http://www.teacoffeeasia.

com---Tea & Coffee Asia---http://www.teacoffeeasia.com---http://www.teacoffeeasia.com/news.asp?id=637 Accessed October 19, 2006 coffee brewing equipmenthttp://www.coffeeforums.com/popular/Brewing/forum+coffee+brewing+equipment/1 Accessed October 19, 2006 Espresso Machines, Espresso/Coffee Grinders, Coffee Brewing Equipment & Partshttp://espressoparts.com/ Accessed October 19, 2006