Advertising and Marketing Research Project

To compare evaluate the consumer’s mindset towards choosing a coffee shop

Report On:

The Problem:-

• Industrial development

• Varieties available

• Perception towards a coffee brand

• Attributes

• New entrants

Research Objectives:-

• To understand the personalities and positioning of coffee shops

• To analyze the effect of age, income, profession and education while selecting a coffee shop

• To find out potential of coffee house market in India and consumer perception towards brand loyalty and the entrance of new coffee houses in India.

• To identify the parameters that play a major role in the consumer’s selection of international chain coffee bars

Hypothesis:-

• Null Hypothesis :-Café Coffee Day will be more famous amongst college students due to its price

and accessibility

• Alternate Hypothesis:-Starbucks will be more preferred by other classes due to its unique coffee taste,

ambience, and its own class and value.

Data Collection Technique:-

PRIMARY DATA

QUALITATIVE DATA

PERSONAL INTERVIEW

GROUP DISCUSSIONS

QUANTITATIVE DATA

SURVEYS

Research Design and Sampling:-

Design

Target Audience: Consumers

Demographic profile:• Age: 18-60• Sex: Male/Female• Education: SSC, HSC, Graduates, Post

Graduates and the Working Class• Occupation: Students, Businessmen,

Entrepreneurs, Working women, Traders• Income group: 50,000 and above per month• Location: Mumbai

Psychographics: Those who are coffee lovers, who don’t mind splurging over a c Coffee of their choice, people who are work oriented and don’t find the time to make coffee, people who like to experiment and demand or prefer the best quality products

Sampling• Sample size: 150

• Sample Break up: 50people for interview including the coffee shop staff+ 5 Competitors (20 sheets in each coffee shop)

• Sampling Unit: City blocks (Areas). 10 units from 6 blocks

• Sampling Frame: Bulk mails, telephone contacts, social networking websites, etc.

• Method of data collection: Primary data collected through qualitative methods of data collection namely surveys, and questionnaires.

• Questionnaire: Structured with attitude management scales using, Qualitative data.

• Type of Interview: Personal Interview.

• How the work will be supervised: A team of three will be split. One would go in coffee shops to interview people, one would distribute the survey sheets and last one will be calculating the results.

• Editing of Questionnaire: A simple, precise questionnaire has been designed using all types of structured and attitude scale measurements to analyses various responses given by the respondents.

• Time for Completion: 3 months.

• Cost: Printing expenses, Stationery expenses and travelling expenses.

Data Analysis:-

72%

28%

Do you usually visit coffeeshop?

YES

NO

44 44 41 4449

44

3137 33

28

6 8 9 8 6

LOCATION SERVICE VARIETY PRICE AMBIENCE

Based on the attributes

V.IMPORTANT S.IMPORTANT N.IMPORTANT

31%

33%

12%

11%

13%

Which coffee shop serves the best coffee

CCD

STARBUCKS

BARISTA

COSTA

BRU

32%

31%

12%

14%

11%

Which is your favouritecoffee shop?

CCD

STARBUCKS

BARISTA

COSTA

BRU

19%

55%

7%

5% 14%

Which café comes first to your mind ?

STARBUCKS

CCD

BRU

BARISTA

COSTA

Major Findings:-

• The finding concludes that most respondents visit coffee shops with friends, with locally branded coffee shops and preferred choices.

• Consumer motivation to branded coffee shops is most influenced by three factors: past experience, convenience of location, and friends and family.

• Customer’s perception of prices plays a very important role in a service sector industry. Because of the intangible nature of a service, prices are often regarded an approximate indicators of quality.

• Friendly staff, high quality of coffee and food, good atmosphere and good reputation is the most important aspect of coffee shops.

• Starbucks, a company which is the leader worldwide in coffee shop, has a goal today to maximize profit, but with the fast pace growth and focus on ROI.

Major Findings:-

• The Ambience & Décor of Café Coffee Day outlets received a below- average rating from respondents of the market survey. A lot of respondents did not like the fact that Café Coffee Day outlets and literature served as prime space for a lot of advertising and promotions.

• According to the research CCD is the most preferred coffee shop, as there are many outlets, combo offers with affordable prices. Starbucks is preferred when it comes status, high quality of coffee and ambience.

• By creating positive customer service, Starbucks has created a large base of loyal customers Starbucks is very successful with drawing customers into the stores; the marketing strategy is simple, offers high quality products and a great atmosphere that will draw consumers in.

Recommendations:-

• If Costa can capture and retain customers then we envisage that many will not move to Starbucks as they are more concerned about the ethical nature of businesses, which remains a priority over taste or habits.

• Barista has an extremely strong brand image, but they need to work hard on improving their customer perception of being and expensive brand. Barista and Café Coffee Day have almost identical pricing, but Barista is still perceived as the more expensive brand.

• Barista is, to carry out a promotion campaign to ensure that their target market is well aware of their current low prices. This would help change customer perception and turn Barista into an affordable brand.

• Café Coffee Day is to clean up the décor at every outlet, wherever unnecessary advertising is taking place.

Recommendations:-

• Café Coffee Day looks at its current recruitment, selection and most importantly, its current training policies. Customers are not happy with the behaviour and service of the staff, and Café Coffee Day is lagging far behind Barista is this aspect.

A few Suggestions from our Respondents:• The cafe must always serve and maintain good quality food and beverages, and

also Indianite their products to suit the taste buds of the Indian consumers.• It must offer pocket friendly items.• Excellent services are of vital importance to survive in today's competing world.• Bigger space.• More outlets/ franchisees.• Keeping a good ambience.• Must provide Wi-Fi services as in today's contemporary world consumers want to

work and relax at the same time.• By giving special discounts or offers to loyal customers, and coming with attractive

offers for its prospect buyers and by advertising effectively.

Conclusion:-

• Café Coffee Day got a high rating in the market survey, for the Taste & Quality of their products. If they work on this aspect, there is huge potential for them to attract customers, just based on the taste and quality of products. This is also helped by the fact that they grow their own coffee beans, and this provides an important base for future expansion and growth. Café Coffee Day even won the “Barista Coffee- Making Championship” for the Best Coffee. CCD has: Value for money proposition and strong youth orientation.

• Barista has an extremely strong brand image, but they need to work hard on improving their customer perception of being and expensive brand. Barista and Café Coffee Day have almost identical pricing, but Barista is still perceived as the more expensive brand.

• Starbucks, a company which is the leader worldwide in coffee shop, has a goal today to maximize profit, but with the fast pace growth and focus on ROI. The problems that relies currently on the company are the fear of going after maximizing the profit and end up losing the Starbucks. Experience which is their mission.

Moushmi Mistry

Jenita Rathod

Nileshwari Gajelli

THANK YOU

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A Research work By: