I have just completed the LEVEL 3 BUSINESS BTEC, I was awarded triple distinction star as my final result. This MARKET RESEARCH IN ACTION assignment is the result of many re-reads and corrections of mistakes, it was awarded a distinction as the grade. This assignment brief can be a bit confusing so...
Mobile Coffee Stall – Market Research in Action
Introduction
Starting a new mobile coffee business presents numerous opportunities
and numerous problems. To succeed, you will have to overcome
obstacles, just like any other business approach.
Appliances, equipment, licenses, vehicle, insurance, advertising, vehicle
paint job, and many other elements are the starting factors to consider.
You will need to research each of these elements because they will be
necessary for this type of business venture. You will need between
£10,000-£15,000 for market research and paying vendors and insurance
payments. This is a sensible budget since it does not allow excessive
spending but does not require insufficient expenditure. An example of this
– if you need money to pay for your automobile, you must not fall behind
on payments or fear winding up in debt.
Initial Plan
Defining the Problem
This research aims to find a gap in the market for the coffee stall business
idea, set a budget, and consider external factors that will impact the
launch of the company concept. The biggest problem to define is
competition in a very saturated market that is coffee shops. Detailed
primary and secondary research should be undertaken to foresee any
external aspects that will directly and negatively impact the company. For
example, seeing how competitors’ price themselves is insightful to know
whether to undercut their pricing or not to attract consumers.
TIMELINE FOR PLANNING
Objectives for Market Research
In terms of market research, you will need to investigate adjacent coffee
shops and chain stores to see how well they are doing, their tactics, and
how much they are selling their products. You will need to examine the
public and determine how many people in the area buy coffee.
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You will need a range of market research approaches, including
questionnaires, private interviews, observations of existing firms, and
polls of people's reactions to the prospective business's introduction. To
begin, you'll need to keep an eye on and investigate neighbourhood
coffee shops to see how they're doing and how much they're charging. It
would be beneficial to look at the rates between firms and see who has
the most consumers and revenues. This information is required to
determine your optimum price point and estimate how many orders your
pricing could generate.
You may do this by going to a local café and looking at their market price
and the number of clients each day. You must keep track of their entrance
and exit times and the number of clients they get at contrasting times of
day, such as how many people they get in the morning versus the
afternoon. This could be beneficial because you will know when to open
your business and develop clients' awareness, as coffee is commonly sold
in the morning hours.
Finding out what local consumers think about surrounding cafés is another
form of study that may be done. This study is necessary to learn what
your community think of other companies, examine their negative
comments, and determine how you may turn that feedback into a good
element for your mobile coffee business. This can be accomplished by
distributing out questionnaires to residents and having them fill them out.
People often disregard questionnaires and surveys they get via email
because they do not perceive them as necessary, resulting in their being
discarded as junk mail. It is better if the questionnaires are produced and
handed out physically rather than digital copies.
It would be best to research what consumers think of the local cafe's
client service and order processing. This is vital because you must
understand how local cafes conduct their business and serve their orders
to boost customer service, attracting more awareness and visitors. You
can perform this research by developing surveys and either publishing
and distributing them out to the public or inviting a group of people to a
private interview in which you can ask them questions and take
observations on their responses
Another crucial component - look at what similar local coffee shops have
to offer. Take notes on their store's appearance. Take notes on the
themes they are using and serving their drinks. As a new business owner,
it is critical that you take notes to see how other local businesses promote
their products and obtain ideas for your display. Also, you will have to
track which presentations bring in the most clients which is the main goal.
Achieving this can be done by seeing how businesses operate - examine
their sales performance data. A critical aspect of your research will be
determining which sorts and flavours of coffee are the most popular on
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the market. This information will determine which coffees and flavours
you will need to acquire, and which varieties are more likely to be sold.
This may result in more sales, which would result in more significant profit
and revenue. Market research can be achieved in a range of practices.
Analysing charts and other company information to perform online
research on the best-selling coffees and flavours is one way. You may also
study how many consumers order the same coffee and how many they
sell in local coffee shops every day to get a basic idea of what you could
do with your coffee stand and how much you could sell.
Determing the Data to
be collected
The data that needs to
be collected with be a
combination of primary
and secondary research,
as well as qualitative and
quantitative research.
Throughout the report
these research methods
will be collected,
discussed, and examined
to help the business
owner fully comprehend
how internal and external
factors such as budget
and competition will
hinder the launch of their
business concept and
future success.
Setting Budget
BEAN
Budget
The budget of £15,000 is
going to come from
personal finance from the
Budget area Estimated founders. The appliances
needed would be coffee
Appliances 4,000.00 machine and other
electricals. Equipment
would cover things such as
Equipment 1,000.00
coffee granules, syrups,
cutlery and more. Licenses
is trademarking BEAN and
the tagline and stall license.
The vehicle (van) and BEAN
tagline promotion must be
Secondary Market Research
Goals:
Goal One
The first goal is to see how local
firms price their products and how
they function well. You may either
look up this information on their
internet page if they have one or go
to one of their locations and look at
their rates for various things.
Another way to conduct research is
to go online and check their
company annual reports released by
the firm and the government,
ensuring that they are accurate and
dependable.
The web is a location where you can
get any information you want for free, including business data and
corporate reports.
Costa Coffee, for instance, is a big player in the coffee and catering
industries. When you go to Costa's website and look at their menu, you'll
notice that they have a variety of coffees, drinks, and desserts to choose
from. Also, if you check at the Costa Coffee rates on UBEREATS, you'll find
that they have a wide range of prices for their different coffees.
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