Market Research For A New Coffee Shop – Analysis And Recommendations

Learning Outcomes for the module

Coffee Shop business is one of the leading and rising businesses in U.K. Keeping this in mind, a new coffee shop has been established. After establishing the coffee shop, the owner is interested to understand the demand for the coffee shop in that area. He is also interested to understand the conditions that people would prefer in the coffee shop. According to the preference of the people, the researcher would be arranging the facilities in his shop. In order to do this, a market research has been conducted on the people of the locality. A survey was conducted and hence the analysis was conducted based on the responses of the respondents. Analysis will be conducted using appropriate statistical techniques and the results will be discussed in the upcoming sections. Based on the results obtained from the analysis, the researcher will be decorating his coffee shop. The availability of the preferences will be more in his coffee shop.

The coffee shops or cafes are the type of industry in which specialized and unlicensed establishments are allowed. These establishments are mainly focussed on the sales of coffee along with the sales of other drinks (cold or hot) and light snacks. U.K. falls among the top 10 countries in the world in importing coffee resources (Turner and Endres 2017).

There has a been a 5.6% growth in the coffee shop chain in U.K. which in turn had a contribution of 29.1% in the market share in 2010 (Susanty and Kenny 2015). Hence there has been huge growth in the number of coffee shops. There are more than 14,000 coffee shops in U.K. but people mostly pay visit to the big brands such as Starbucks, Costa Coffee and Caffe Nero (Bulut, Demirbas and Ferhatosmanoglu 2015). Thus, the smaller coffee shops are now trying to follow the trend the big brads follow and try to provide the facilities that they provide (Carvalho, Paiva and Vieira 2016).

In order to do this research, a survey has been conducted. The survey was conducted with the help of a questionnaire. The questionnaire was distributed to 20 people in the selected coffee shop and their responses were recorded. Based on their responses, the analysis has been performed. Appropriate statistical techniques were applied to analyse the data and the results of the analysis is discussed in the following section.

To do this analysis, a very small sample of the respondents was selected. 20 responses were collected from 20 people of the locality. It can be seen from the analysis that 8 people do not drink coffee regularly and 12 people drink coffee regularly. Table 1 and figure 1 shows the results.

Coffee Shop business in U.K.

Do you usually drink Coffee	Frequency
No	8
Yes	12
Grand Total	20

Figure 1: Proportion of people drinking Coffee

It can be observed from the data that among the respondents, 6 are females and 14 are males. This has been summarized in table 2 and shown diagrammatically in figure 2.

Gender	Frequency
Female	6
Male	14
Grand Total	20

Figure 2: Proportion of the gender of the Respondents

It can be seen from table 3 that the people visit coffee shops quite often. From previous studies also it has been obtained that the people of Britain prefer coffee shops a lot. Thus, this data supports the previous analysis.

How often do you go to the Coffee Shop	Frequency
1	3
2	3
3	7
4	6
5	1
Grand Total	20

Figure 3: Frequency of visiting Coffee Shops

Table 4 shows the preference of visiting the coffee shops. It can be seen from this table that most of the people prefer to go to the same coffee shop that they usually go to. Thus, there are a lot of regulars in a coffee shop. Thus, in order to run the business more successfully, the coffee shop owners must give preference to the choice of their regulars as most of the people prefer to visit to the same coffee shop mostly. The distribution is shown diagrammatically in figure 4.

Do you usually visit the same coffee Shop	Count
Yes	11
No	4
Mostly	5
Grand Total	20

Figure 4: Number of people visiting the same coffee shop

It can be seen clearly from the analysis provided in table 5 that the preference of regular coffee with flavour and Special coffee is the most. Thus, the coffee shop should keep the quality of these two types of coffees very good. This will increase customer satisfaction which will in turn help in flourishing the business.

How do you like your Coffee	Count
Others	2
Regular Coffee with Flavour	8
Regular Iced	2
Regular Milked	2
Special Coffee	6
Grand Total	20

Table 5: Preference for Coffee

It can be seen clearly from table 6 that most of the people of the coffee shop prefer to have some snacks along with coffee. Thus, the owners of the coffee shop must keep this in mind and introduce some snacks that people might prefer to have along with coffee. The proportion of people preferring snacks is shown diagrammatically in figure 6.

Do you like your coffee with snacks	Count
Yes	14
No	6
Grand Total	20

Figure 6: Preference of Snacks with Coffee

It has already been discussed that people prefer to have some snacks along with coffee. Now, it is important to find out what type of snacks would be preferred by people along with coffee. Preference for Hamburger, pie, cakes and doughnut has been observed the most. Among these 4 snacks, people prefer the hamburger the most. Thus, ample supply of the hamburger must be kept in coffee shops in order to satisfy the customers’ needs.

What Snacks would you prefer to have with your coffee	Count
Hamburger	12
Pie	4
Cakes	3
Doughnut	1
Grand Total	20

Survey on people’s preferences for a new coffee shop

Figure 7: Snacks with Coffee

A lot of coffee shops nowadays are offering reading materials such as magazines and books. A coffee shop with these kinds of facilities can be desired by people. Thus, to check the influence, people were asked whether they would prefer a coffee shop that has reading materials. According to the respondents, it has been observed that people did not give much of a good rating to that. According to most people, it is unimportant to them whether a coffee shop has a reading place or not. Coffee shop is mainly a place to relax and spend some quality time with friends. Books are thus not a necessity in this scenario. Hence, putting up reading materials is not a good idea.

How does the presence of reading materials influence selection of a Coffee Shop	Count
2	8
3	6
4	6
Grand Total	20

Figure 8: Influence of reading materials in a Coffee Shop

People were also asked about the importance of music is a coffee shop. It has been observed from the responses of different people that they would prefer some musical arrangements in the coffee shop. Music would make a good ambience and hence, this would attract more customers.

What is the importance of Music in Coffee Shop	Count
1	3
2	2
3	5
4	7
5	3
Grand Total	20

Figure 9: Importance of Music in a Coffee Shop

The taste and the quality is an extremely important factor in a coffee shop. If the taste if coffee in a coffee shop is not good, there will not be customers having coffee from there and the place will not be referred as a good coffee place. It has been seen from the analysis that the customers of this coffee shop are quite satisfied with the taste and quality of their coffee.

How satisfied are you with the taste and quality of our coffees?	Count
2	2
3	5
4	9
5	4
Grand Total	20

Figure 10: Satisfaction with the taste and quality of coffee

It can be seen from the analysis provided in table 11 that the people are quite satisfied with delivery service of the shop. Though there is scope of improvement in this matter and the shop should look into this matter as this is one of the most important factors of customer satisfaction.

How satisfied with our customer service delivery?	Count
1	1
2	1
3	8
4	7
5	3
Grand Total	20

Figure 11: Satisfaction with customer service delivery

There has to be some factors that help a person to select a particular coffee shop. To assess that factor, questions were asked to the respondents. According to their responses, the most important factors have been identified as Quality and Ambience of the shop. Not much preference has been given to the price of the products. Thus, it can be said that if the quality of the products served by the cafe is good and the ambience is nice, then people even visit coffee shops with a higher price.

The most important factor which affects your selection of coffee shop	Count
Quality	8
Ambience	8
Menu	2
Price	2
Grand Total	20

Table 12: Factors important for selection of coffee shop

Conclusion

Thus, from the analysis conducted in the above sections, it can be concluded that in order to flourish the business of this coffee shop, the owner must keep in mind the quality of coffee types such as regular coffee with flavours and Special coffee. Snacks must also be availab

References

Bulut, M.F., Demirbas, M. and Ferhatosmanoglu, H., 2015. Lineking: Coffee shop wait-time monitoring using smartphones. IEEE Transactions on Mobile Computing, 14(10), pp.2045-2058.

Carvalho, J.M., Paiva, E.L. and Vieira, L.M., 2016. Quality attributes of a high specification product: evidences from the speciality coffee business. British Food Journal, 118(1), pp.132-149.

Susanty, A. and Kenny, E., 2015. The Relationship between Brand Equity, Customer Satisfaction, and Brand Loyalty on Coffee Shop: Study of Excelso and Starbucks. ASEAN Marketing Journal, pp.14-27.

Turner, S. and Endres, A., 2017. Strategies for Enhancing Small-Business Owners’ Success Rates. International Journal of Applied, 16(1), pp.34-49.