Case 4.1 Catalina Perea

docx

School

University of Texas, Rio Grande Valley *

*We aren’t endorsed by this school

Course

6310

Subject

Marketing

Date

Feb 20, 2024

Type

docx

Pages

Uploaded by ChiefChinchillaMaster1210

A New Joe on the Block Joe is overwhelmed by all the information that he found on the Internet. Probably, it was initially a good idea to do some research on the Internet to guide himself about his new business, "A Cup of Joe." Because of his 30 years of experience in Market Research, he thought he knew how to get ideas for the best decisions about his coffee shop. However, looking for information on the Internet can always become a rabbit hole. One can quickly lose the real purpose of this research. He was on a good path initially with the information he needed before starting: ■ What markets in the United States hold the most promise for a new coffee shop? ■ What type of location is best for a coffee shop? ■ What is it that makes a coffee shop popular? ■ What coffee do Americans prefer? However, reading all that data from McDonald's, Dunkin' Donuts, Burger King, and Starbucks made him lose his path. On the other hand, it would be great if "A Cup of Joe" could be as big a chain as any of those. However, he should be more realistic and recognize that he is starting as a small company compared with them, so his strategies are different, and his target market probably is different. Joe should be cautious about drawing absolute conclusions from these studies. Taste is subjective, and preferences can vary significantly among individuals. The results might also be influenced by factors such as the location of the study, the sample size, and the methodology used. 1. What are the top three critical decisions faced by Joe? a. Market Selection: Identifying which markets in the United States hold the most promise for a new coffee shop. b. Location: Determining the best type of location for his coffee shop, considering factors like foot traffic, proximity to competitors, and customer demographics. Who are and where are the top drinkers of coffee in the country? c. Define his strategy: Understanding what makes a coffee shop popular and deciding how to position his shop to stand out in a competitive market. 2. What key deliverables should an outside researcher produce to help Joe make critical decisions? a. A Coffee Market Study: The researcher should deliver a comprehensive analysis of the coffee shop industry, including market trends, customer preferences, and competition. b. Location Analysis: The report should include potential locations, evaluating their suitability based on demographics, foot traffic, and proximity to competitors. c. Consumer Insights: A Consumer analysis showing customer preferences according to age, season, and occupancy. What can influence decisions about coffee taste, menu preferences, and additional factors, such as If they like to drink their coffee with some pastry products?

d. Financial Study: Show a financial plan that includes investment, costs, and profitability numbers. Give a projection on when the coffee shop will last in the start-up phase and when it should start seeing a real profit. It should list all the costs, such as rent, furniture, machinery, decoration, and payroll. 3. How relevant are the coffee taste studies cited above? Explain. The coffee taste studies provide insights into consumer perceptions of various coffee brands. While the studies offer a perspective on taste preferences, they may have limitations regarding sample size, methodology, and subjectivity. Therefore, their relevance lies in providing general insights into taste preferences but might need to capture consumer behavior's complexities fully. Joe’s coffee shop is just starting; he should not base all their research on big chains. It is probably better to check very close the small coffee shops. 4. What flaws in the coffee taste studies should Joe consider in trying to weigh the merits of their results? Joe should consider the following flaws: a. Subjectivity: Taste is highly subjective, and individuals' preferences vary widely. b. Sample Bias: Studies might have minor or biased samples that do not represent the broader population. c. Context Dependency: Taste can be influenced by factors like time of the day or season, location, and mood. d. Limited Parameters: Studies might focus solely on taste, ignoring factors like ambiance, customer service, and price. 5. Briefly relate this situation to each of the significant stages of the marketing research process. 1. Defining Objectives: Joe wants to open a coffee shop and needs to make the best decisions to have a profitable business. Joe's initial questions about market selection, location, and popularity of coffee shops need to be answered. 2. Planning a research Design: Decide how the information will be collected: surveys, experiments, secondary data, or observation. They must get information about customers and decide the best data collection method. 3. Planning a Sample: How many people are going to be surveyed, in what location is going to focus on collecting the data 4. Collecting the data: Data through taste tests, interviews, and surveys. 5. Analyzing the data: Analyzing results to conclude coffee preferences and other factors. 6. Formulating the conclusions and preparing the report: Presenting insights from the research and suggesting strategies for Joe's coffee shop business.

6. Try to do a quick search to explore the question: “Are American consumer preferences the same all across the United States?” Consumer preferences in the United States can vary widely based on regional culture, demographics, economic conditions, and local trends. While there might be some similarities in priorities across the country due to the influence of national brands and media, there are also notable differences. Consumer preferences are not unique across the United States, and businesses must consider these variations when targeting different markets. For instance, food preferences differ based on regional cuisine, climate, and cultural influences. Clothing styles might vary based on weather, local fashion trends, and cultural norms. Also, purchasing habits, product choices, and brand loyalty can differ based on income levels, urban vs. rural living, and generational differences. 7. Would it be better for Joe to do the research himself or have a consultant perform the work? Whether Joe should conduct the research himself or hire a consultant depends on his expertise, resources, and time available. Hiring a consultant could provide a more structured and objective approach, leveraging their expertise. Doing the research himself might offer deeper personal insights but could be time-consuming and biased. 8. If a consultant comes in to do the job, what are three key deliverables that would likely be important to Joe in making a decision to launch the Cup of Joe coffee shop? a. Market Analysis: An assessment of promising markets with demographic data, competitive analysis, and growth potential. b. Location Recommendations: Detailed evaluations of potential locations, highlighting pros and cons. c. Positioning Strategy: Insights into differentiating "A Cup of Joe" and making it popular, considering factors beyond taste, like ambiance and customer experience. Success! Your submission appears on this page. The submission confirmation number is 635bbec011dd493a95d1580f166eee89. Copy and save this number as proof of your submission. View all of your submission receipts in My Grades.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Related Documents

MKTG 601- Assignment 1.docx

BMK 201 OL ASGN 3 IBISWord Industry Research Report revised(2) (1).docx

MARS1010: ASSIGNMENT 3.docx

week 2 .docx

Quiz 3 - Regina LeonV.docx

Case 13.1 Catalina Perea.docx

Discussion 1 Reply 1.docx

workbook-20230630020756980495-Non-Probability-Sampling-Practice-f.pdf

workbook-20231024053438468174-Planning-and-Conducting-Surveys-Practice-f.pdf

Hero Dog Treats.docx

MT219unit8assignment.docx

MKT205_Project module 7.docx

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:Cengage,

Marketing

ISBN:9780357033791

Author:Pride, William M

Publisher:South Western Educational Publishing

Purchasing and Supply Chain Management

Operations Management

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Cengage Learning

MARKETING 2018

Marketing

ISBN:9780357033753

Author:Pride

Publisher:CENGAGE L

Foundations of Business (MindTap Course List)

Marketing

ISBN:9781337386920

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

Foundations of Business - Standalone book (MindTa...

Marketing

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

SEE MORE TEXTBOOKS

Recommended textbooks for you

Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Marketing
Marketing
ISBN:9780357033791
Author:Pride, William M
Publisher:South Western Educational Publishing
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
MARKETING 2018
Marketing
ISBN:9780357033753
Author:Pride
Publisher:CENGAGE L
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning