Coffee Time Market Mba510
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CoffeeTime Market
The ambience and aroma of a freshly brewed exotic coffee creates a winning combination for CoffeeTime, a popular chain of comfortable meeting places serving some of the finest exotic flavors. CoffeeTime maintains a substantial presence in the United States and Europe and management is considering globalization (University of Phoenix, 2006). Initial research shows that South Asia, especially India, is a promising location for expansion. Globalization of CoffeeTime requires careful consideration of market research especially in the design concepts of both secondary and primary research. Analysis of the secondary research reveals location probability yet is limited in some cultural details and potential constraints on the data as to validity of the research. Primary research specifically designed for CoffeeTime venues as to demographics with reliable probability need consideration before finalizing executive decision on the move into the India coffee bar market.
CoffeeTime compiled a large amount of general research information regarding India and viable market locations within the country. The population of India is approximately three times the population of the United States, while only one-third its size. In studying India, CoffeeTime also learned that Hindi is the national language while English is an important language for natural, political, and commercial communication. With research completed on specific locations in India, CoffeeTime now knows the number of restaurants, malls, and schools in various locations, yet lacks comparison with the number of people attending such on any given day, important for determining a retail location. Some of the other discoveries for CoffeeTime include paved roads showing prosperity, and the likelihood of which cities provide a modernistic culture, important to the probability of consuming class for CoffeeTime products.
Cities like Chennai have a modern culture outlook while Ahmadabad has the spending power (University of Phoenix, 2006). Data such as whether roads are paved or unpaved help researchers determine town and city statistics, as to modernization as well as how much traffic goes through the town. Towns with paved roads are likely to have much more traffic and generally presumed to be busier market wise and larger in size and population. Another determinate important in discerning potential CoffeeTime locations is the approximate income ranges of the residents. When researching retail locations businesses should have knowledge if the residents are able to afford the products being sold. Location decisions are of critical importance to all firms, when facilities do not have physical contact with customers such as through a call center or distribution center. The demand for the products or services can be assumed to be independent of locations (Dasci & Laporte, 2005). Knowing the general consumer base of its products, obtaining pertinent information on how many students attend a school or college, or the number of people visiting a mall on any given day, would help CoffeeTime decide the location for potential customers. Determining competition, such as how many other coffee shops and restaurants are in a particular area, will also help in decisions for the location of CoffeeTime bars in specific areas.
Further research will help CoffeeTime discern many other idiosyncrasies of Indias demographics. When determining new markets, it is imperative that research reveals cultural tendencies as well as economic feasibility. Economic statistics on gross product development, imports and exports of products, and major trade partners is readily available. Secondary research on country and local governmental regulations is vital to any new venue. Risk factors include utilities, such as water and electricity, and even climates, which pertain directly to the cultural development and viability of the products offered by CoffeeTime. An agricultural nation, among Indias gross domestic products is tea and coffee. CoffeeTime needs to be aware of the local flavors, offering a selection of their standard fare with traditional coffee tastes of India. According to CultureGrams Database (2007) of India, the eating habits of the diverse people of India vastly differ from the routines common in America. “All castes have different food laws and customs, as does each religion” (CultureGrams Database). Cows are considered sacred in some areas, therefore, the snacks offered by CoffeeTime need to be censored to the ingredients. Vegetarianism is the mode for most castes and supper can be very late at night. “Some Hindus object to having their food handled by members of different castes” (CultureGrams Database). Muslims do not drink alcohol; therefore, some of the popular CoffeeTime flavors, which may include traces of liquors, will need to be labeled separately. The initial information provided by secondary research is very helpful in determining generalities and is easily ascertainable. Additional research is required for specifics related to the business and the limitations of both types of research.
According to the University of Phoenix (2007) white paper entitled Descriptive Statistics, “Validity and reliability are the hallmarks of good statistics” (para. 6). Extremely important to any market research is validity of the data collected. Limitations to the data might include the timeline for which the data was compiled, the actual scope of the data, measures of dispersion and the perspective of the individual or company providing the data. In the University of Phoenix simulation for CoffeeTime, Brad Collins is a colleague. Brad would know CoffeeTimes brand perception, and his input would be valid and valuable. However, Brads opinion might be skewed slightly, as to the areas he reviewed as a visitor to India, versus local consumers. Other limitations would include examples as mentioned in previous paragraphs, where only part of the data was available. The locations of colleges and malls are important, yet the data lacked the actual numbers of traffic counts to validate the information. Location choices are often hard to reverse, and lack of sufficient information can affect return on investment.
Additional data relating to similar types of establishments would be very useful to a Manager for Business Development. When conducting the research within India, specific sampling and surveys are only moderately effective if the right size or measurement is skewed from too many deviations. Primary data involves the collection of data that does not already exist and can be quite costly, so the results should be reliable and measurable. Coffee Time should obtain a random sample by completing a survey conducted with a pool of the population (Easton, 1997). With very large populations such as in India,