Coffe Time

Coffee Time is a chain of coffee bars that is popular in North America and Europe. It obtains and roasts some of the finest coffee beans and they also sell a variety of blended coffee beverages and snacks. In addition, recent trends in the global coffee business indicate that South Asia is an emerging market for coffees with a special flavor and coffee bars. Coffee Time has identified India among other South Asian economies as a bright prospect. Coffee Time is a premium brand of exotic and regular coffee flavors. For many Americans and Europeans, Coffee Time stands for the celebration of coffee. Since, the management of Coffee Time is considering the option of entering into India; they must analyze some data and come up with a research design that should answer the following:

• Which city or cities should Coffee Time enter?

• Who is the target segment?

• What is the expected revenue per outlet?

Therefore, since Coffee Time is entering a new market they will follow a two- stage market research design that involves a secondary research and primary and experimental research that they will design to determine if Coffee Time should enter the Indian market. Keep in mind, the research will have to operate within a defined budget. In order to get the right data, Coffee Time hired a market research firm called Total Access. However, to help get some of the data on cultural outlook and the degree of affluence of the people; Coffee Time agreed to send their Senior Vice-President, of Marketing Brad Collins to India as well. Total Access along with Collins prepared a perceptual map of twelve Indian cities, which has been classified based on the cultural outlook and the degree of affluence of the people.

There are several things Coffee Time knows about the various location in India. According to Collins, India is a developing country steeped in history. Collins states that India is quite an experience, which intrigued him with its size and number of people—approximately three times the population of the United States (US) at one-third its size. In addition, there is just as many languages as there are states. It is a mix of tradition and modernism where serene villages co-exist with bustling metros. The people are quite friendly and they give a lot importance to family values. Today, India is one of the most powerful economies in South Asia, according to Collins. India’s economy is a mixture of village farming, modern agriculture (accounts for about 34% of GDP), information technology, and wide range of manufacturing industries. Recent industrial and investment reforms have provided new opportunities for Indian businesspersons and an estimated 100 million to 200 million consumers. India has a strong entrepreneurial class and a central government that recognized that continuing need for market-oriented approaches to economic development.

Some other data Coffee Time knows about India is that the area is 3,287,590 sq km with a population of more that one million; the capital is New Delhi, and the national language is Hindi. Apart from Hindi, there are about 24 major languages. English is an important language for national, political, and commercial communication. India’s currency is Rupees (Rs). For example, an American dollar is approximately equal to 50 Indian Rupees. The natural resources are coal, iron ore, manganese, mica, bauxite, titanium ore, natural gas, diamonds, petroleum and limestone. India’s principal crops are rice, wheat, oilseeds, cotton, jute, tea, sugarcane, potatoes, and livestock. Major industries are textiles, chemicals, food processing, steel, transportation equipment, cement, mining petroleum machinery, rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes, and livestock. Thus, India’s major trading partners are the US, Hong Kong, the United Kingdom, Japan, Germany, Belgium, and Saudi Arabia. What Coffee Time does not know that it might learn from further research is that one must be discreet when seeking secondary data and useful information saves time as well as information cost money. So therefore, it is always better to conduct a thorough secondary data search before moving on to primary research. Keep in mind, that the essence of primary research is asking the right questions. After all, a good question is well on its way to obtain the required answer. It must be noted that there is no single best research design.

When deciding where to locate Coffee Time outlets, we must consider other factors outside of location. Since we will be dealing with another country we understand that transportation is not as advanced as it is in the United States. India, although it has transportation both public and personal, we believe that it is relevant to acknowledge how consumers intend to get to our location.