P2 Undertake secondary research for a selected marketing objective Introduction

Introduction

As part of market research plan for a client interested in opening a coffee shop business, it is
important to assess the potential threats and opportunities that the business may face in the
marketplace.

In terms of opportunities, the coffee shop industry is a growing sector, with increasing demand for
high-quality coffee and unique customer experiences. A well-positioned coffee shop can attract a
loyal customer base and achieve strong profitability. Additionally, technological advancements in
point-of-sale systems and mobile ordering have made it easier for customers to access and order
coffee, providing new opportunities for coffee shops to reach customers and enhance the customer
experience.

On the other hand, the coffee shop industry is also highly competitive, with a multitude of
established players and increasing entrants to the market. In addition, the rising cost of rent and raw
materials, such as coffee beans and milk, can put pressure on margins and profitability. There is also
the potential for external factors, such as changes in consumer preferences or economic downturns,
to impact the demand for coffee.

To mitigate these threats, it is important for the business to differentiate itself from competitors and
provide a unique value proposition to customers. This can be achieved through developing a strong
brand and providing high-quality products and customer service. Additionally, building relationships
with suppliers and negotiating favorable terms can help control costs and increase margins.

Conducting comprehensive market research, including surveying potential customers and analyzing
the competitive landscape, can provide valuable insights into the market and help inform strategic
decision-making. By leveraging the opportunities and mitigating the threats, the coffee shop
business can position itself for success in the dynamic and competitive coffee shop industry.

Market research plan

As part of creating a market plan for your friend's coffee business, it is essential to understand the
market landscape, identify key competitors and consumer trends, and develop effective strategies to
achieve their business goals.

To begin, conducting primary and secondary research can provide valuable insights into the coffee
market, such as consumer preferences and trends, pricing strategies, and key players. Primary
research can include surveying potential customers, conducting focus groups, and gathering
feedback from existing customers. Secondary research can involve analyzing industry reports,
market trends, and competitor analysis.

Based on the research findings, your friend can develop their marketing objectives, such as
increasing brand awareness, expanding their customer base, and improving customer loyalty. To
achieve these objectives, your friend can consider developing a strong brand identity, creating a
unique value proposition, and utilizing targeted marketing campaigns through social media, email
marketing, and local advertising.
Budgeting is a crucial aspect of any marketing plan. Your friend will need to allocate resources
towards marketing initiatives that will have the highest impact on achieving their objectives. This
may involve investing in advertising, hiring marketing professionals, and upgrading their website or
mobile application to provide a seamless customer experience.

In addition to identifying opportunities, it is also important to recognize potential challenges and

problems that the coffee business may face. This can include increased competition, rising costs of
raw materials, and changing consumer preferences. By identifying these issues early on, your friend
can develop strategies to mitigate their impact and ensure business success.

Based on your secondary research, the coffee market in the UK is a rapidly growing industry with
increasing demand for high-quality coffee and unique customer experiences. The expansion of
coffee shops to sell snacks and lunch has made it a popular niche restaurant business.

The industry is worth £133 billion and has an average consumption of approximately 90 million cups
of coffee per year, with up to 76% of its value being produced in the UK. This indicates that there is a
strong domestic demand for coffee, making it a lucrative industry for potential business owners.

However, with approximately 25,000 coffee shops in Britain, there is significant competition in the
market. Costa, Starbucks, and Caffe Nero are the major competitors in the industry, with Costa being
the market leader with 1180 franchise outlets and Starbucks having 760 franchise outlets in the UK
alone. These established players have strong brand recognition and customer loyalty, which can
make it difficult for new businesses to enter the market.

Despite the competition, the coffee shop industry is at its peak, with 82% of people visiting coffee
shops at least once a week and 16% visiting daily. This presents a significant opportunity for new
businesses to capture a share of the market and attract loyal customers through providing high-
quality products and unique customer experiences.

However, it is important to note that almost 96% of coffee in the UK is imported from other
countries, such as Brazil. This means that fluctuations in the global coffee market and changes in
trade policies can impact the cost of raw materials and affect profitability for coffee shop businesses.

Based on the information you have provided, it is clear that the coffee industry in the UK makes a
significant contribution to the economy. The Gross Value-Added (GVA) contribution from the coffee
industry is estimated to be £9.1 billion, indicating that coffee businesses play an important role in
generating income and employment in the UK.

Furthermore, the output contribution, which includes indirect and induced multiplier impacts, is
estimated to be £17.7 billion in 2019. This suggests that the coffee industry has a significant impact
on the wider economy, creating job opportunities and stimulating economic growth.

The high demand for coffee in the UK, with over 90 million cups consumed per year, indicates a
favorable market for coffee shop businesses. The market is continuously growing, with new coffee
shops opening frequently to meet consumer demand.
However, it is important to note that the coffee market in the UK is considered a perfect
competition. This means that there are many small players in the market, making it difficult for
individual businesses to influence market prices. This can make it challenging for new businesses to
establish themselves and compete with established players in the industry.

Despite these challenges, your friend's business can use this information to develop strategies to
differentiate themselves and stand out in a crowded market. By providing high-quality products and
services, creating a unique brand identity, and offering exceptional customer experiences, they can
attract loyal customers and succeed in the competitive coffee industry. Based on the information
you have provided, it is clear that the coffee industry in the UK makes a significant contribution to
the economy. The Gross Value-Added (GVA) contribution from the coffee industry is estimated to be
£9.1 billion, indicating that coffee businesses play an important role in generating income and
employment in the UK.

Furthermore, the output contribution, which includes indirect and induced multiplier impacts, is
estimated to be £17.7 billion in 2019. This suggests that the coffee industry has a significant impact
on the wider economy, creating job opportunities and stimulating economic growth.

The high demand for coffee in the UK, with over 90 million cups consumed per year, indicates a
favourable market for coffee shop businesses. The market is continuously growing, with new coffee
shops opening frequently to meet consumer demand.

However, it is important to note that the coffee market in the UK is considered a perfect
competition. This means that there are many small players in the market, making it difficult for
individual businesses to influence market prices. This can make it challenging for new businesses to
establish themselves and compete with established players in the industry.

Despite these challenges, your friend's business can use this information to develop strategies to
differentiate themselves and stand out in a crowded market. By providing high-quality products and
services, creating a unique brand identity, and offering exceptional customer experiences, they can
attract loyal customers and succeed in the competitive coffee industry.

Upon conducting secondary research on the UK coffee market, it is evident that the industry is
rapidly expanding with a coffee shop present in every busy street. According to research, the
industry is valued at £133 billion, with an average consumption of approximately 90 million cups per
year, and 76% of its value is estimated to be produced in the UK. The coffee shop business is the
fastest-growing niche restaurant business, with many expanding their business and now selling
snacks and lunch to stay competitive.

Despite the potential for profitability, the market is highly competitive, with local, national, and
international players such as Cafe Nero, Starbucks, and Costa competing for market share. The
largest competitors are Starbucks and Costa, with the latter generating revenue of £1.34 billion in
the UK in 2019. These brands attract a significant customer base, with Costa having 1180 franchise
outlets and Starbucks with 760 franchise outlets in the UK.

Starting a franchise can provide high profitability but comes with considerable costs, with well-
known representatives such as Costa and Starbucks costing more than £900,000. However, for a
small business with limited capital, starting as a franchisee may not be suitable.

Primary target customers for coffee are young adults, with research showing that those aged 20 to
35 consume two cups of coffee daily, while those aged 35 and over consume one and a half cups
daily. Consumers aged 50 and over tend to consume one or no cups of coffee daily, likely due to
health conditions. Approximately 60% of UK households buy instant coffee for in-home
consumption. This data provides insight into the target market for coffee, allowing for targeted
promotional activities to attract and retain customers.

P3 undertake pilot primary market research and collect sample data

I will be using primary and secondary research for the market objective

Market research aim

In the competitive coffee market, there are well-established brands such as Starbucks and Costa
Coffee. To succeed and establish a strong customer base, it is essential to come up with new
innovative ideas that differentiate the business from its competitors. One strategy could be offering
deals like BOGOF or buy a coffee and get a cookie-free. Another tactic could be introducing new
coffee Flavors, as many businesses have successfully done, such as the pumpkin Grande during
Christmas times.

To stand out even more, offering a new flavor and running it consistently could be an effective
strategy to attract and retain customers. However, it is crucial to understand the market trends and
what customers want in their coffee. Conducting a pilot questionnaire to gather data on customer
preferences and what flavour they would like to try could provide valuable insights to help the
business succeed.

Market research objectives

One of the key objectives for any business is to create brand awareness and promote its products or
services to the target audience. To achieve this, it is crucial to use the right platform and target the
right audience to ensure the message is received by the intended audience. In this case, the business
aims to advertise its coffee stall over the next 8 months and will use social media platforms such as
Instagram, Snapchat, Twitter, and YouTube to reach a wider audience beyond the target market.
These social media platforms are highly effective in creating brand awareness as they are widely
used by people of all ages.

Another important objective for the business is to attract more customers by offering innovative
products and deals. To achieve this, the business plans to introduce a new permanent flavoured
coffee and provide some discounted deals to attract customers over the next 6 months. The decision
on what flavour(s) to offer will be based on primary research that involves asking people about the
products they would like to see in the coffee stall. The research will also involve analyzing the
flavours offered by competitors to determine what works and what does not. By offering a new
coffee flavour(s) and discounted deals, the business aims to increase brand awareness and attract
new customers while retaining existing ones.

To ensure the success of these objectives, it is important to have a well-executed marketing plan
that includes a clear messaging strategy, promotional tactics, and a timeline for execution. This will
ensure that the promotional efforts are consistent, cohesive and effectively target the intended
audience. Additionally, it is crucial to measure the effectiveness of the marketing campaigns to
identify what works and what does not and adjust the strategy accordingly. This can be achieved by
analysing the sales data, customer feedback, and engagement metrics on social media platforms. By
implementing a well-crafted marketing plan, the business can achieve its objectives, increase brand
awareness, and grow its customer base.

The business objective is to increase revenue by the middle of 2021 through effective advertising
and attracting new customers. It is crucial to promote the business to the right audience through
various marketing channels to attract customers and make a profit. By implementing effective
advertising strategies, the business can improve its brand visibility, attract more customers, and
generate more revenue. One potential avenue for revenue growth is through brand collaborations,
which can be a valuable marketing tool for businesses. Collaborating with other well-known brands
in the industry can provide opportunities to increase brand awareness and attract new customers.
For instance, Costa coffee has collaborated with Vodafone, offering free coffee to Vodafone
customers. By partnering with other brands, the business can leverage their brand power and attract
more customers, leading to increased revenue.

Market research budget

To keep the market research budget in check, we have allocated a budget of £900 - £1000 for this
project, as the coffee stall business has limited resources. To ensure that we use the budget wisely,
we will be using a cost-effective approach by preparing the questionnaire ourselves. The
questionnaire will be designed in a way that will help us gather the required information from our
customers. It will provide us with insights into our customers' preferences and help us to understand
their buying behavior.

Questionnaires are one of the most commonly used methods in market research as they are cost-
effective and easy to administer. With the questionnaire, we will be able to find out the flavor
preferences of our target market and understand how often they visit coffee shops. It will also help
us to gauge the amount customers are willing to pay for a cup of coffee, which will enable us to price
our products competitively.

By using primary research methods such as questionnaires, we will be able to gather accurate data
from our target market. This information will enable us to make informed decisions and develop
strategies that will help us to improve our business performance.

Primary research

The research method that we will use for the objective of creating brand awareness is social media
analytics. Social media analytics is a method that is used to gather data from various social media
platforms and analyse it to understand how people are responding to a brand or product. By using
social media analytics, we will be able to monitor the performance of our social media advertising
campaign, track engagement metrics such as likes, comments, and shares, and determine which
platforms and ads are most effective in reaching our target audience. We will also be able to track
the growth of our brand awareness over time and make necessary adjustments to our social media
strategy.

To carry out social media analytics, we will use tools such as Hootsuite and Google Analytics.
Hootsuite will allow us to manage our social media accounts in one place, schedule posts, and track
engagement metrics. Google Analytics will allow us to track website traffic and understand how our
social media ads are driving traffic to our website. We will also use features such as Facebook
Insights and Twitter Analytics to gain deeper insights into our audience demographics and interests.

The data that we collect through social media analytics will be used to improve our social media
strategy and increase our brand awareness. We will use the insights to determine which platforms
and ads are most effective in reaching our target audience, and adjust our strategy accordingly. By
using social media analytics, we will be able to optimise our social media advertising campaign and
achieve our objective of creating brand awareness within the next 8 months.

Secondary research

One primary method that businesses can use for market research is questionnaires. Questionnaires
are an effective way to collect data from customers and gain insight into their preferences and
opinions. By creating a questionnaire, businesses can ask specific questions to their target audience
about their products or services, such as their preferred flavors, how often they visit a coffee shop,
and how much they are willing to spend on a cup of coffee. This information can help businesses
tailor their offerings to better meet their customers' needs and attract more customers.

Another primary method that businesses can use for market research is focus groups. Focus groups
are a relevant way to get feedback about a product or service. In a focus group, participants are
asked to provide feedback about a product or service after trying it out. This feedback can be
valuable for businesses, as it can help them identify areas for improvement and better understand
their customers' needs and preferences.

In addition to primary research methods, businesses can also use secondary research methods, such
as government statistics and data from other market research websites. Government statistics can
provide businesses with information about consumer buying habits and market trends. This
information can be useful for businesses as they can gain insight into their competitors' sales and
strategies, and identify opportunities for growth and expansion. Data from other market research
websites can also be valuable for businesses, as it is already collected and can be used for free. This
data can provide businesses with insights into their competitors' strategies and help them attract
new customers.

Primary pilot questionnaire

Conducting a pilot survey is a widely used technique in market research to evaluate the quality and
reliability of a survey instrument before it is distributed on a large scale. This method involves testing
the questionnaire with a small number of participants, usually between 20 and 50 people, to assess
the validity and reliability of the survey questions.

In this case, my friend is looking to gather information to help their business grow and survive.
Therefore, a pilot survey can provide valuable insights and feedback from a small sample of people
to ensure that the final survey is effective in achieving the desired outcomes. The survey can be
distributed in a local area, to a sample of about 50-100 people, depending on the size of the target
market.

The pilot survey can help to identify potential problems with the survey instrument, such as unclear
or ambiguous questions, and determine the optimal question format, response options, and survey
length. This information can be used to make any necessary revisions to the questionnaire to ensure
that the final survey is valid, reliable, and produces high-quality data.

Furthermore, the pilot survey can help to refine the sampling strategy and determine the most
effective methods of data collection. This information can be used to ensure that the final survey
reaches the desired target population and maximizes response rates.

Sampling plan

Sampling frame:

A sampling frame is an essential tool for any business looking to carry out research or surveys. For
the coffee stall business, the sampling frame will be a list of all the individuals who will be targeted
for the survey or research. The population of interest for this business will be people of all ages and
genders, who are coffee drinkers.

The coffee stall will offer affordable and cheaper prices for their products, which will attract a wide
range of customers. With the low prices, the business is expecting to attract people from all social
classes, including working professionals and students. As many people tend to grab a cup of coffee
before they head to work, the coffee stall can target these individuals with their low prices and
convenient location. Additionally, students often spend time in cafes and coffee shops, so by offering
a seating area, the coffee stall can attract this demographic as well.

By having a clear sampling frame, the coffee stall can ensure that they are reaching their target
audience effectively. This will help the business to collect accurate data that can be used to make
informed decisions about their products and services. The sampling frame will also help the coffee
stall to tailor their marketing efforts to the specific demographics that they are targeting. Overall,
having a well-defined sampling frame is a crucial element of any successful market research strategy.

Method of sampling

Another market research method that can be used is online surveys. Online surveys are a cost-
effective way to gather data from a large number of people quickly. They can be distributed through
email, social media, or other online platforms, and can be easily completed by respondents at their
convenience. Online surveys allow for more anonymity for respondents which can encourage them
to give more honest answers. Additionally, the data can be analysed quickly and easily, and the
results can be used to make data-driven decisions about the coffee stall. Another advantage of using
online surveys is that they can be easily customized to fit the needs of the business and can target
specific groups of people. By using online surveys, the coffee stall can gain valuable insights into
customer preferences, opinions, and satisfaction with their services.

Size of the sample for each method being used:

The research strategy that I will be using to gather data for my friend's coffee stall is a questionnaire.
The questionnaire will be designed to gather information about the coffee stall's target market,
including their preferences and interests. We will distribute the questionnaire to a sample of the
coffee stall's target market, which will consist of people of all ages who are interested in coffee. We
will use a convenience sampling technique to select our sample, which involves distributing the
questionnaire to people who happen to be in the vicinity of the coffee stall. We will also post the
questionnaire on social media to reach a larger audience.

The questionnaire will consist of 10-15 questions, which will be designed to gather information
about the customers' preferences for coffee, their frequency of visiting coffee shops, their preferred
type of coffee, and their opinions on the coffee stall's menu and pricing. We will use both open-
ended and closed-ended questions to gather both qualitative and quantitative data. We will analyze
the data using statistical techniques to identify patterns and trends in the customers' preferences
and behaviors.

In addition to the questionnaire, we will also use secondary research methods such as government
statistics and other market research reports to gather data about the coffee industry and trends in
customer behavior. We will use this information to supplement the data we gather from the
questionnaire and to provide a broader context for our analysis. By using multiple research methods,
we can ensure that our data is comprehensive and accurate, which will help us make informed
decisions about how to improve the coffee stall's offerings and attract more customers.

How will people be reached

For this research, I will be using a mixed-methods approach, utilizing both a focus group and a
questionnaire to gather feedback about the coffee stall. The focus group will consist of 8-10 people
in each group, and we will aim to conduct around 5-6 groups with a total of 50-60 participants. The
participants will be chosen at random but still within our target audience, and we will ask for their
consent before asking them any questions.

The questionnaire will be distributed both online and in written format, making it easily accessible
for our target audience. We will aim to reach out to people who are interested in coffee, with a
focus on teenagers and young adults who are more likely to purchase coffee. The questionnaire will
be simple and easy to complete, with 5-6 questions that will provide us with valuable feedback.

We will distribute the questionnaires in the town canter, as it will be a high traffic area with a diverse
group of people. Additionally, we will post the online questionnaire on all our social media pages,
making it easy for our customers to provide feedback.

Focus group questions:

1. How often do you visit a coffee shop in a week?

2. Which type of coffee do you prefer to buy when visiting a coffee shop?

3. What flavour do you think should be added in a coffee selection?

4. What other products/services do you want to see when visiting a coffee shop? Any
improvements?

5. How much are you willing to spend for a medium cup of coffee?

6. Would you buy a coffee cup from a stall?

Questionnaire:

1. How old are you?

18-21

22-30

31 and over

2. How often do you visit a coffee shop in a week?

Once a week

2-4

More than 5

3. Your gender?

Male

Female

4. Do you buy snacks with your coffee?

yes no

5. how much are you willing to spend in a coffee shop?

6. what flavour do you want to see in a coffee shop?

Feedback

The feedback gathered through the questionnaire will help us understand the preferences and
expectations of our target audience, which will help us tailor our business strategy to meet their
needs. From our questionnaire, we found out that customers are willing to pay a premium for high-
quality coffee, which suggests that we should focus on sourcing high-quality coffee beans and
investing in skilled baristas to deliver a superior coffee experience. We also found out that customers
value a cozy and comfortable atmosphere, so we will focus on creating a warm and inviting
ambiance at our coffee stall to encourage customers to stay longer and return for more visits.
Overall, the feedback from the questionnaire will help us create a successful and sustainable coffee
business that meets the needs of our target audience.

M2 Analyse the reasons for choosing particular research methods, the type of data to be collected
and the sampling plan.

In this assignment, I will analyse the reasons for choosing a particular market research method and
the data I will be collecting through them and the sampling plan that I have created. I have chosen
focus groups and questionnaires as a research method to carry out market research for a new line of
skincare products that my friend is planning to launch. Market research is important for any business
as it helps in understanding customer needs, identifying potential competitors, and gaining insight
into market trends.

The focus group method is suitable for collecting qualitative data from a group of people. It helps to
understand the participants' opinions, attitudes, and experiences regarding a product or service. In
the case of skincare products, focus groups can provide insights into the needs and preferences of
the target audience, such as their skincare routines, the ingredients they prefer, and the problems
they face with their skin. By conducting multiple focus groups, we can gather a range of opinions and
feedback, which can be used to develop and improve the product line.

Questionnaires are a suitable method for collecting quantitative data from a large number of people.
They can be distributed online or in-person and are relatively low cost. By using questionnaires, we
can gather information on a larger scale, such as demographics, product preferences, and buying
habits. This data can be used to analyze the target audience and create targeted marketing
strategies.

To ensure the sample population is representative, I will use a random sampling method for both
focus groups and questionnaires. The focus groups will consist of participants from the target
audience, which in this case, will be women aged 18 to 35 who are interested in skincare products.
For the questionnaires, I will distribute them to a larger audience, including men and women aged
18 to 65, as the skincare market is not gender specific.

market research is an essential tool for any business looking to launch a new product or service. By
using a combination of focus groups and questionnaires, we can gather both qualitative and
quantitative data to gain insight into the market, identify customer needs, and develop targeted
marketing strategies. Additionally, using a random sampling method will ensure that the data
collected is representative of the target audience.

Firstly, I have chosen focus groups as a research method for my friend’s coffee stall business. A focus
group is a form of qualitative research that involves a small group of people (6-10) who are brought
together to discuss a product or service. From this research method, I will be able to gain in-depth
insights into the customer's opinions, thoughts, and attitudes towards our product and service.
During the focus group, we will be asking questions like, what are their favourite coffee flavours,
how do they like their coffee, what other products or services do they look for in a coffee stall, and
what is their overall experience with the coffee stall? The data we collect from this research method
will help us understand the customers' expectations and how we can tailor our product and services
to meet their needs. Additionally, we will also be able to identify any issues or concerns that
customers have with our product and service, which we can address to improve our business.
Overall, the focus group will provide us with valuable insights into our target market, allowing us to
make informed decisions and improve our business strategy accordingly.

The questionnaire is a standard research method that involves asking a set of structured questions
to a targeted audience to collect data and gain insights into their preferences and behaviours. It is a
valuable tool for businesses looking to gather information on their target market, competitors, and
products/services.
One of the advantages of using a questionnaire for market research is that it is a fast and efficient
method of collecting data. The standardized questions ensure that responses are consistent and
easy to analyse, allowing businesses to quickly identify trends and patterns in the data. Additionally,
questionnaires can be distributed to many people simultaneously, enabling businesses to collect
data from a broad cross-section of the population.

However, there are also potential disadvantages to using a questionnaire. One of the biggest
challenges is ensuring that respondents provide honest and accurate responses. Respondents may
be reluctant to answer certain questions truthfully, particularly if they feel that their responses may
be used against them or if they perceive the questionnaire as a waste of their time.

To address these challenges, it is important for businesses to design questionnaires that are easy to
understand and administer, and that encourage honest and accurate responses. Additionally,
targeting a specific audience can help ensure that the data collected is relevant and reliable.

In the case of the coffee stall business, the questionnaire will be administered to local people who
have visited the stall, ensuring that the data collected is relevant and applicable to the business. The
questions asked will be carefully designed to elicit honest and accurate responses that will enable
the business to improve its products and services and better meet the needs of its customers.

the questionnaire is a valuable tool for businesses looking to gather insights into their target market
and improve their products and services. While there are potential challenges to using this method,
careful planning and design can help ensure that the data collected is reliable and actionable.

Another market research method that I have chosen is the focus group. A focus group is a
qualitative research technique that involves gathering a small group of individuals (typically 6-10
people) together in a room to discuss and provide feedback on a particular product, service or
campaign. By using this method, we will be able to gain a better understanding of what our
customers truly think of our coffee stall and identify areas that require improvement.

The focus group method is a cost-effective and time-efficient way of gathering detailed and valuable
feedback compared to conducting individual interviews. Moreover, it provides an opportunity for
participants to interact with each other and express their opinions more freely, leading to rich and
diverse insights.

In our focus group, we will ask questions that will help us gain insight into our customers'
behaviours, preferences and opinions. One of the questions that we will ask is “How often do you
visit a coffee shop in a week?” This question will help us determine the frequency of customer visits
to our stall, enabling us to adjust our operations to better meet the needs of our target audience. By
understanding our customers' habits and behaviours, we will be able to create a customer-focused
experience that meets their expectations, leading to higher customer satisfaction and loyalty.

The fourth question in the focus group will be “What do you think of our prices compared to other
coffee shops?” This question will help us to know if our prices are competitive and if customers feel
that they are getting good value for their money. This will help us to adjust our pricing strategy if
needed to make sure that we are meeting the customers’ expectations. The fifth question will be
“Do you usually buy any snacks or food items with your coffee?” This question will give us an insight
into whether we should consider selling food items in addition to coffee, and what kind of food
items would be most popular. Lastly, I will ask “How likely are you to recommend our coffee stall to
your friends and family?” This question will help us to understand the customer’s loyalty towards
our brand and how likely they are to promote our business to others. Overall, the focus group will
give us a deeper understanding of customer preferences and behaviours, and will help us to make
informed decisions about the business strategy. One disadvantage of the focus group is that it can
be time-consuming and expensive to organize, but the benefits of getting detailed and in-depth
feedback from the customers outweigh the costs.

The last question in the focus group will help us to get an idea of the customer's perception of
pricing, which will assist in determining the pricing strategy for the coffee stall's products. This is
important because pricing is a crucial aspect of any business, and it can make or break the success of
the business. By understanding how much the customers are willing to pay for a medium cup of
coffee, my friend can price their products accordingly and ensure that they are not pricing
themselves out of the market.

An advantage of using a focus group for market research is that it allows for in-depth discussions and
conversations about the product or service being offered. This can provide more detailed and
valuable feedback than other research methods, such as surveys or questionnaires. Additionally, by
bringing together a group of people who are interested in coffee, my friend can tap into the
collective knowledge and experience of the group, which can provide insights that may not be
possible with individual interviews or surveys.

However, a potential disadvantage of using focus groups is that they may not be representative of
the larger population, as the group of people in the focus group may not accurately reflect the target
market. Additionally, there may be biases or group dynamics that can influence the feedback given
in the focus group. Therefore, it is important to carefully select participants for the focus group to
ensure that they are representative of the target market and to take steps to mitigate any biases or
group dynamics that may arise during the discussion.

Focus group is a market research method that is widely used in the business industry as it provides
detailed information about the customers' opinions and experience with a product or service. It is
considered as a useful method to measure the reaction of customers to your new product or
company strategies. Using this method, businesses can get immediate and honest answers from the
participants, which can help them to make informed decisions.

One of the main advantages of the focus group method is that it saves both time and money
compared to interviewing people individually. By bringing together 6-10 people in a room, the
business can get feedback from multiple customers at once, which makes it more efficient.
Additionally, the feedback provided by the participants is usually immediate and honest, which can
help the business to make necessary changes quickly and effectively.

Another advantage of the focus group method is that it provides valid data. The participants in the
focus group are usually selected based on specific criteria, such as demographics or interests, which
make the data collected more relevant and reliable. The feedback provided by the participants can
also be used to create a more accurate picture of the market and customer preferences, which can
help businesses to tailor their products and services to the needs of their target audience.

the focus group method is a valuable tool for businesses looking to gather detailed feedback and
insights from their customers. By using this method, businesses can save time and money while
collecting valid data that can be used to make informed decisions and improve their products and
services.
D2 Evaluate the effectiveness of the pilot research recommending changes that should be made to
the final market research activity.

After conducting the focus group in my pilot research, I found it to be an effective method to gain
detailed feedback from a small group of customers. The focus group allowed me to get a better
insight into what customers think of the coffee stall and what improvements can be made. It also
allowed for immediate and honest answers from the participants. However, there are some changes
that can be made to improve the final market research activity.

For the questionnaire, one change that can be made is to add some open-ended questions to allow
respondents to provide more detailed feedback. This will help us to gain more insights into
customers' thoughts and preferences. Additionally, we can offer incentives or rewards for
completing the questionnaire to increase participation and ensure that the data collected is reliable.

The use of a focus group as a method for market research is effective as it provides an opportunity
to gather detailed information and opinions from a small group of people who represent the target
market. The questions asked in the focus group will help to gather information about the customers'
experience with the coffee stall, their preferences for coffee flavors, and their willingness to spend
on a cup of coffee. This information will help to improve the product offering and the pricing
strategy.

The advantage of using a focus group is that it provides immediate and honest feedback from the
customers. It also saves time and money compared to conducting individual interviews. The data
collected from the focus group will be valuable for making business decisions and planning future
strategies. However, it is important to note that the focus group may not represent the entire target
market, so the findings should be interpreted carefully.

both the questionnaire and focus group are effective methods for conducting market research. The
questionnaire is useful for collecting quantitative data and the focus group is useful for collecting
qualitative data. The data collected from both methods can be used to improve the product offering,
pricing strategy, and customer service, which will lead to business growth and success.

Focus groups are an

effective way to collect qualitative data as it provides an opportunity to obtain in-depth feedback on
a particular topic or product. In a focus group, participants can express their opinions and attitudes
towards a particular subject and provide detailed feedback on how they feel. One of the advantages
of focus groups is that it allows for more in-depth exploration of a topic or product compared to
other research methods. Focus groups are also a great way to generate new ideas and identify
potential problems that may not have been considered before. The results obtained from a focus
group can be analysed and used to make informed decisions about a product or service. However,
focus groups can be expensive and time-consuming, and the results may not be generalizable to the
larger population. It is also important to carefully select the participants to ensure that they are
representative of the target audience.

Questionnaire:

1. How old are you?

18-21
22-30

31 and over

2. How often do you visit a coffee shop in a week?

Once a week

2-4

More than 5

3. Your gender?

Male

Female

4. Do you buy snacks with your coffee?

yes no

5. how much are you willing to spend in a coffee shop?

6. what flavour do you want to see in a coffee shop?

The reason for including open-ended questions in the questionnaire is to gain a more detailed and
nuanced understanding of the respondents' attitudes and opinions. Open-ended questions allow the
respondents to express their views in their own words, providing a richer source of data than closed
questions. This is particularly useful when exploring complex issues or when trying to understand the
reasons behind a particular behaviour or attitude. Additionally, open-ended questions can help to
identify unexpected or previously unknown themes that may not have been anticipated by the
researcher. Overall, the use of open-ended questions alongside closed questions can provide a more
comprehensive understanding of the research topic, leading to more informed decision-making.

Primary research is an essential part of any successful marketing campaign, as it helps businesses to
gain valuable insights into customer behaviour and preferences. In order to effectively carry out
primary research, businesses must use a variety of methods to gather data and feedback from
customers. One such method is the use of focus groups, which can provide detailed information
about a product or service and help businesses to better understand their target audience.

Focus groups bring together a group of 6-10 people in a room to provide feedback and opinions on a
specific product, service, or marketing campaign. This approach enables businesses to gather a
diverse range of opinions and perspectives, which can help to identify patterns and trends in
customer behaviour. By using focus groups, businesses can quickly gather a large amount of data
about their target audience, which can be used to inform future marketing strategies and product
development.

Using focus groups can also be cost-effective, as businesses can save both time and money by
interviewing multiple customers at once. This approach is particularly useful when testing new
products or services, as it allows businesses to gather feedback and make changes before launching
to a wider audience. Additionally, focus groups can provide businesses with an opportunity to
engage with customers and build brand loyalty, as customers feel valued when their opinions are
heard and taken into consideration.

the use of focus groups is a valuable tool for businesses looking to gain a deeper understanding of
their target audience. By gathering feedback and opinions from customers in a structured and
controlled environment, businesses can make informed decisions about product development and
marketing strategies, which can ultimately lead to increased sales and brand loyalty.
The
use of questionnaires in primary research is an efficient and cost-effective way to obtain data from a
large sample of individuals. The questions asked in a questionnaire should be easy to understand
and effectively measure the variables of interest. Closed-ended questions are useful for gathering
quantitative data while open-ended questions provide more qualitative data. By utilizing both types
of questions, a researcher can gain a comprehensive understanding of the target audience's
thoughts and preferences.

In addition to questionnaires, focus groups can also provide valuable insights into customers'
attitudes and perceptions of a product or service. A focus group consists of a small group of
individuals who are brought together to discuss a particular topic. This method is useful for
generating explanations and gathering in-depth information about the target audience's thoughts
and opinions.

Focus groups can be a cost-effective method of market research as they enable the researcher to
gather data from multiple individuals in a single session. Moreover, focus groups provide a platform
for open discussion where participants can express their opinions, feelings, and experiences about
the product or service in question. The insights generated from a focus group can be invaluable for
businesses looking to improve their products or services and enhance customer satisfaction.

Conducting a focus group provides the coffee business with valuable insights into the customers'
reactions to the new product or company strategies. It is an effective method of measuring customer
feedback and gauging the market demand. Through the focus group discussion, the coffee business
can gain a better understanding of the strengths and weaknesses of their product or service, as well
as identify any opportunities or threats that may arise in the market.

The insights gathered from the focus group can help the coffee business to identify areas of
improvement, refine their marketing strategies, and ultimately increase customer satisfaction and
loyalty. Additionally, by actively seeking out and addressing negative feedback from the focus group,
the coffee business can take proactive measures to improve their product or service and mitigate
any potential negative impact on their brand reputation.

Overall, conducting a focus group is an effective and efficient way for the coffee business to gather
valuable insights and feedback from customers, ultimately leading to better decision-making and an
increased competitive advantage in the market.

Focus group questions:

1. How often do you visit a coffee shop in a week?

2. Which type of coffee do you prefer to buy when visiting a coffee shop?

3. What flavour do you think should be added in a coffee selection?

4. What other products/services do you want to see when visiting a coffee shop? Any
improvements?

5. How much are you willing to spend for a medium cup of coffee?6. Would you buy a coffee cup
from a stall?

Focus group discussions are an essential tool for businesses seeking to gather insights from
customers and other stakeholders. One of the critical requirements for a successful focus group
discussion is to be well-organized and ask similar questions to seek reliability from the group. This
means that the questions should be carefully crafted to ensure that they are clear, concise, and
relevant to the research objectives. By doing so, the group's responses will be more reliable, and the
data collected will be of higher quality.

Moreover, focus group discussions are a flexible technique that can be adapted to any stage of the
research. For example, they can be used to explore issues that are not well understood or where
there is little prior research on the topic. This is particularly useful in the business world, where
companies are constantly looking for new insights and opportunities to stay ahead of the
competition. By using focus group discussions, businesses can gain valuable insights into consumer
preferences, needs, and behaviours, which can be used to develop new products, services, and
marketing strategies.

Another advantage of focus group discussions is that they lead to valuable output and the data is
gathered quickly. This is important in the fast-paced world of business, where decisions often need
to be made quickly. By using focus group discussions, businesses can gather data in a short amount
of time, allowing them to make informed decisions based on reliable information. This can lead to
significant cost savings, as companies can avoid costly mistakes and make better use of their
resources.
In conclusion, focus group discussions are a valuable tool for businesses seeking to gather insights
from customers and other stakeholders. By asking well-prepared questions, businesses can ensure
that the data collected is reliable and of high quality. Additionally, the flexibility and speed of focus
group discussions make them an ideal technique for businesses looking to stay ahead of the
competition by gaining valuable insights into consumer preferences and behaviors.
As for the focus group, we can increase the number of participants to get a larger sample size and a
more representative view of customers' opinions. We can also provide a moderator to lead the
discussion and ensure that everyone has a chance to speak and share their thoughts.

Overall, both methods were effective in gaining insight into the market and customers' preferences.
However, by making these changes to the final market research activity, we can improve the quality
and reliability of the data collected