Question

Joe Brown, a 30-year veteran market researcher, is ready to enter the coffee shop business. He has some key research questions:
• What markets in the United States hold the most promise for a new coffee shop?
• What type of location is best for a coffee shop?
• What is it that makes a coffee shop popular?
• What coffee do Americans prefer?
• How would consumers respond to coffee delivery?
The Internet offers considerable information from studies on taste done by individual researchers, usually themselves as the only sample respondent. Joe doesn’t find much on consumption patterns and the number of coffee shops around the United States. Joe wonders about the relevance of previous research and questions whether he is capable of doing any primary research himself. He considers hiring someone to do a feasibility study for him. Maybe doing research is easier than using research.

PLEASE ANSWER THE FOLLOWING QUESTIONS.

1) Try to do a quick search to explore the question: “Are American consumer preferences the same all across the United States?”
6) If a consultant comes in to do the job, what are three key deliverables that would likely be important to Joe in making a decision to launch the Cup of Joe coffee shop?

Answer 1

1) No, American consumer preferences are not the same all across the United States since consumers who are based in commercial centres, i.e. New York will prefer to buy different types of coffee which is healthier and coffee with different price tag in order to have multiple choices with them to choose from and wants coffee shops to be available right near their place of work .

And areas which are not commercially popular or far flung area will prefer to buy the coffee which are easy on their pockets and are situated in nearby markets.

6) First key deliverable will be commercial nature of the city: Since commercial areas are the one where lakhs of people work and have economic power/good earners and by launching a Joe coffee shop there will be a good idea since consumption of his coffee will be much higher in this area and moreover business people tend to meet at coffee shops oftenly and sit for longer hours and all these factors will make launch of Joe coffee shop a successful one.

Second key deliverable will be population density: Areas with high population density will be a good choice to launch a coffee shop there since people of high density areas will often come and visit the coffee shop and will produce good demand for the coffee and will be a good market for Joe coffee shop.

Third key deliverable will be suburban areas: There are the areas which are near to urban areas and people there behave like urban people and often commute between urban centres for jobs and back to their homes situated in suburban areas and these people and their suburban area will prove to be a good market for Joe to launch his Joe coffee shop.