Market And Strategic Overview For 7 Eleven Coffee Research In Sydney, Australia

Market and Strategic Overview

The 7 Eleven coffee is considered to be famous across its home country as it provides satisfaction to the customers with its authentic taste. The product is famous more in Canada and it provides for a unique flavour in the form of a well-balanced and smooth coffee drinking experience.

The major players in the market are the coffee market includes Starbucks, Coffee Bean and Tea Leaf, Caribou Coffee and Dunking Donuts. These companies also serve as a strong competitor 7 Eleven coffee in the coffee manufacturing and production department.

The past activity of 7 Eleven is to be involved with selling all types of beverages for the satisfaction of the customers that also included candy and prepared food. The current activity is focused on the development of the coffee business in the country and beyond.

The target market for conducting the research is in Sydney, Australia. The high cultural people that are involved with the drinking of coffee as a regular beverage are targeted with a high standard in the society.

The regulation required for making the coffee need to comply with the manufacturing of food laws in the country. Coffee can be consumed mostly at the winter and the distribution can be made directly by the company from its stores. The pricing need to be kept at medium so that low-income groups can enjoy the authenticity of the coffee. Communication about new products can be done with the help of social media like Facebook.

The reason for conducting the research is that it can help in understanding the importance of market and the manner in which a simple store can compete against the big names in the coffee manufacturing industry.

The research helps in identifying the marketing strategies as well as the effectiveness of the target market while trying to contemplate the existing marketing plans. Marketing programme in the form of identifying marketing plan need can be made after the research.

The business unit that the research has most impact are the marketing of an organisation. The marketing manager of 7 Eleven can be considered as involved in identifying the target market so that effectiveness in the gaining the satisfaction of customers can be made.

The constraints that may occur while undertaking the research includes alerting the customers about the number of coffee shops that exist, along with the effectiveness it has on the market. At the same time, the research can be met with restrictions in the form of gathering authentic information.

Background and Role of the Research

Business objective: The business objective of the research is to understand the manner in which marketing plans can be implemented for making a company successful in a competing environment.

Research objective: The research objective is to understand the attitudes, behaviours and consumption of coffee that people undertake. At the same time, the expectations of the customers over the coffee shop can be analysed after conducting the research. The research is more of a quantitative manner as the responses of the customers need to be recorded, ascertained and measured.

The research groups that can be of interest in conducting the research may include the rich community people residing in Sydney. Hence, research question that can be developed includes:
What are the major beverage that rich communities in Sydney, Australia consume?

The valid population or sample size for conducting the research can be of about 50 people that are interested in consuming coffee on a regular basis.

The data collection methods that are adopted are the primary collection in the form of survey. This is mainly due to identifying and calculating the responses of the target market.

The limitation of the research design includes the authentication of the data as the responses may be doctored and at the same time, every people in the target sample population may not provide responses

The research tools and techniques that will be used for the research includes the survey method and analysis using tools statistical calculation in Ms Excel and SPSS.

The requirement that needs to be present while conducting the research includes assistance from MS Word and MS PowerPoint. The MS Word will be used for making the report while the PowerPoint will be used for providing a presentation.

The presentations need to include the type of data that has been collected and the manner in which it can help in understanding the effectiveness of the research. The presentations can provide details about the statistical analysis and the findings.

The constraints that exist while conducting the research includes:

• Gaining authentic information about the responses of the target market
• Finding the people that are interested in consuming coffee
• Identifying the target market and convincing them about the reason for the research
• Ensuing that enough information is gathered for developing theories
• Getting the responses of the target market in an efficient manner
• Ensuring that the statistical methods used are accurate
• Financial limitation in the form of making the pages for survey
• Gaining access to libraries and internet connections that are more private

Despite these constraints, it can be said that the research can be completed within the given period. This is mainly because the objectives set for conducting the research can be achieved without having to deviate a lot from the research topic. Cooperation from every manager can be gained for identifying the authenticity of the responses. At the same time, the objectives are divided into two parts, which provides an idea about the priorities that needs to be achieved at the start of the research.

Sources of Capital
Owners’ Investment (7 Eleven coffee)
7 Eleven coffee ownership	$   3,000,000
Other Investor	25,000
Other Investor	2,500
Other Investor	–
Total Investment	$   3,027,500
Bank Loans
Bank 1	$           2,500
Bank 2	1,500
Bank 3	–
Bank 4	–
Total Bank Loans	$           4,000
Other Loans
Source 1	$         65,000
Source 2	15,000
Total Other Loans	$         80,000
Startup Expenses
Buildings / Real Estate
Purchase	$                       55,000
Construction	4,500
Remodeling	500
Other	500
Total Buildings and R / E	$                       60,500
Leasehold Improvements
Item 1	$                         5,500
Item 2	$                         5,500
Item 3	$                         5,500
Item 4	$                         5,500
Total L / H Improvements	$                       22,000
Capital Equipment List
Furniture	$                       10,000
Equipment	$                       25,000
Fixtures	$                       25,000
Machinery	$                       25,000
Other	$                         1,500
Total Capital Equipment	$                       86,500
Location and Admin Expenses
Rental	$                                  –
Utility Deposits	2,500
Legal and Accounting Fees	2,500
Prepaid Insurance	2,500
Pre-opening Salaries	2,500
Other	5,500
Total Location and Admin Expenses	$                       15,500
Opening Inventory
Category 1	$                         1,500
Category 2	$                         1,500
Category 3	$                         1,500
Category 4	$                         1,500
Category 5	$                         1,500
Total Inventory	$                         7,500
Advertising and Promotional Expenses
Advertising	$                         1,500
Signage	$                         1,500
Printing	$                         1,500
Travel & Entertainment	$                                  –
Other / Additional categories	–
Total Adv and Promo expenses	$                         4,500
Payroll and payroll taxes
Expense 1	$                       25,000
Expense 2	25,000
Total Payroll and payroll taxes	$                       50,000

Objectives

Summary Statement
Sources of Capital
Owners’ and Other Investments	$   3,027,500
Bank Loans	4,000
Other Loans	80,000
Total Source of Funds	$   3,111,500
Startup Expenses
Bldgs / Real Estate	$         60,500
Leasehold Improvements	22,000
Capital Equipment	86,500
Location / Admin Expenses	15,500
Opening Inventory	–
Advertising / Promo Expenses	4,500
Other Expenses	50,000
Total Startup Expenses	$   6,462,000

From the analysis of the budget it can be seen that 7 Eleven coffee is the sole investor of the coffee as it provides more than $3,000,000. It also shows that the company needed to remodel its structure so that opportunity for the development of coffee can be made. These can be considered as two negative points for the company in its financial quest. However, on the positive side it can be seen that it does not have to spend any amount on travel and expenses meaning the amount saved can be used to meet the other requirements of the company.

The data that is gathered need to be stored in a private manner so that people not involved with the research does not have any access to it. One of the manner in which data can be stored is by the use of computers. The survey responses need to be stored in computers so that statistical calculation can be done easily. Data Protection Act 1998 needs to be abiding by during the research.

The presentation techniques that need to be considered include the use of PowerPoint for making the presentation slides.

Research ethics and codes of conduct include abiding by the rules of the Data Protection Act, 1998. At the same time, none of the information received can be used for purposes other than the research. No participant can be forced to respond to the research questions.

For further research, it is necessary to understand the theories and models that are associated with the topic at hand. The use of tools like SPSS and Ms Excel need to be made in a manner that can help in identifying the ease of calculation of data.

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