A NEW JOE ON THE BLOCK

PAPER 5
RESEARCH METHODOLOGY
BACKGROUND

 A coffee shop in the United States is a considered a competitive and

lucrative retail business. The most dominant coffee shops in the United
States include Starbucks, McDonald’s, Dunkin’ Donuts and Burger King.

 In addition, the retail industry has many local competitors that are located
in almost every city and town. Consumers’ preferences on coffee are
based on taste, price and experience. Joe needs to conduct a thorough
research on coffee shop business.
INTRODUCTION

 A Cup of Joe business idea is a brilliant idea and implies the growing
demand for coffee in the United States. Although the business name is
appealing and implies a sense of creativity, the retail business is influenced
by other critical factors. Among the most notable factors in the industry
include taste, customer experience and market research.

 Joe has to make a critical decision in regard to the new market research.
In this context, Joe must consider three factors that include assessing the
reliance of the previous research, requirements of a primary research and
reliability of both secondary and primary research methods.
OBJECTIVES

 The objective of the Joe’s research is to achieve relevant deliverables that

are key to success of the business. The objectives include:

• Ascertain the appropriate business location.

• Establish the correct preferences for coffee as mentioned by the
customers.
• Determine factors that influence the success of a coffee shop.
• Determine the appropriate price and quality of the coffee product.
ANALYSIS

 Starbucks emerged as the most preferred business entity by the customers.

From the sample 100 customers, Starbucks emerged as a huge enterprise
and can provide quality coffee.
 This explains why the price of Starbucks’s coffee is slightly high compared
to McDonald’s, Burger King and Dunkin Donuts.
 The flaws of the studies imply that Joe did not follow the required stages of
a marketing research process.
CONCLUSION

 The preferences of the American consumer are not the same across the
country. Across the states, consumers prefer locally-owned coffee shops
that understand the social-economic setting of the region.
 On the other hand, large-scale coffee shop retailers such as Starbucks,
McDonald’s, Dunkin Donuts and The Burger King are preferred in large
cities where many of the customers are middle-income earners.
RECOMMENDATION

 Joe can hire a consultant to conduct the research. A consultant has the
adequate resources and competency to conduct an in-depth research.
In addition, Joe’s decision to start the business will be based on the
consultant’s ability to outline three deliverables that include size of the
market, popularity of coffee shops and types of coffee.
THANK YOU