1. COEUR - BCM Business Creativity Module Market Research and Resource Assessment Carolyn McNicholas c.mcnicholas@rgu.ac.uk

2. 2 DEFINITION OF MARKET RESEARCH “ The systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services.” American Marketing Association. “Market research is the means used by those who provide goods and services to keep themselves in touch with the needs and wants of those who buy and use those goods and services.” Market Research Society

3. 3 DEFINITIONS OF PRIMARY AND SECONDARY DATA Simple definitions: Primary data = data collected for the first time Secondary data = existing data

4. 4 SECONDARY DATA Size of market (volume, value) Trends and projected growth Main PESTE (political, economic, social/cultural, technological, ecological) factors impacting on marketplace Customer analysis & buying behaviour (location, earnings, preferences, spending patterns) Competitor analysis (number, ease of entry, substitutes, product and service offerings, brand image, supplier relationships, etc)

5. 5 SECONDARY DATA Suppliers Product research (design, modifications, brand positioning, etc) Pricing Promotion Distribution Legal – employment law, health & safety, VAT, PAYE, contract law, environmental law Other - financial, property, operational, start- up costs – will depend entirely on the idea

6. 6 LIMITATIONS OF SECONDARY DATA Collected for some other purpose No control over the data collection May not be very accurate May not be reported in the required form May be outdated May not meet data requirements A number of assumptions have to be made

7. 7 EXTERNAL SECONDARY SOURCES: Business Gateway Commercial databases Consumer surveys and reports The library Trade associations, journals and directories Trade shows and conventions The media The www. Business Directories –Yellow Pages –www.yell.comwww.yell.com –Thomson Local (www.thomsonlocal.com)www.thomsonlocal.com –Kellys Business Directories –(www.kellys.co.uk)www.kellys.co.uk National and local government statistics Government publications

8. 8 BUSINESS GATEWAY Business information Business start-up Business growth Increasingly delivered by web-based solutions www.bgateway.com

9. 9 RGU LIBRARY - EXTERNAL DATA Business databases –journal/magazine articles (Business Source Premier, Emerald, Science Direct, Sage, Taylor & Francis, Google scholar) –newspaper articles (International Newsstand) –Information on markets (Mintel, Key Note, Passport (Euromonitor), COBRA, Business Source Premier including Datamonitor) –company information (Business Source Premier) and company financial information (FAME)

10. 10 COBRA COBRA Business Opportunity Profiles –An Introduction to Researching a Market for Business Start-ups (No 185 – June 2008) –A Guide to Sources of Market and Business Information (No 47 - January 2009) –A Guide to Using A Market Research Questionnaire (No 1 - 2008) Note: Only 1 user at a time

11. 11 FINDING INFORMATION ON A COUNTRY Michigan State University global information http://globaledge.msu.edu/resourcedesk/ The World CIA Factbook https://www.cia.gov/library/publications/the-world- factbook/index.htmlhttps://www.cia.gov/library/publications/the-world- factbook/index.html The United Nations Cyberschoolbus http://cyberschoolbus.un.org/infonation3/menu/advan ced.asphttp://cyberschoolbus.un.org/infonation3/menu/advan ced.asp The World Bank http://web.worldbank.org/WBSITE/EXTERNAL/COU NTRIES/0,,pagePK:180619~theSitePK:136917,00.ht mlhttp://web.worldbank.org/WBSITE/EXTERNAL/COU NTRIES/0,,pagePK:180619~theSitePK:136917,00.ht ml The European Commissions Market Access database http://mkaccdb.eu.int/mkaccdb2/indexPubli.htm

12. 12 FINDING INFORMATION ON A COUNTRY The OECD website http://www.oecd.org/countrieslist/0,3351,en_3387310 8_33844430_1_1_1_1_1,00.htmlhttp://www.oecd.org/countrieslist/0,3351,en_3387310 8_33844430_1_1_1_1_1,00.html A list of national statistics offices websites produced by the UN http://unstats.un.org/unsd/methods/inter- natlinks/sd_natstat.asphttp://unstats.un.org/unsd/methods/inter- natlinks/sd_natstat.asp Business Insight Interactive http://www.bi- interactive.com/index.aspx?StoryID=0&ReportID=107 6&Lang=en&MainPage=homehttp://www.bi- interactive.com/index.aspx?StoryID=0&ReportID=107 6&Lang=en&MainPage=home Eurostats facts through figures http://epp.eurostat.ec.europa.eu/portal/page/portal/eu rostat/homehttp://epp.eurostat.ec.europa.eu/portal/page/portal/eu rostat/home

13. 13 STATISTICS WEB SITES Office of National Statistics has census data, population demographics, income levels, social and regional trends. Many of the sites are regional – i.e. England and Wales. Scottish equivalent is SCROL –www.statistics.gov.ukwww.statistics.gov.uk –www.scrol.gov.ukwww.scrol.gov.uk –www.nomisweb.co.ukwww.nomisweb.co.uk Scottish Executive and Scottish Enterprise –http://www.scottish-enterprise.com/http://www.scottish-enterprise.com/

14. 14 LOCAL INFORMATION Aberdeen / Aberdeenshire City Council –population trends (age, sex, unemployment) –small area population forecasts (dwellings and populations by ward) –http://www.aberdeenshire.gov.ukhttp://www.aberdeenshire.gov.uk –http://www.aberdeencity.gov.uk/ACCI/web/site /home/home.asphttp://www.aberdeencity.gov.uk/ACCI/web/site /home/home.asp

15. 15 GENERAL SOURCES Department of Business Enterprise and Regulatory Reform (www.berr.gov.uk)www.berr.gov.uk Chambers of Commerce Corporate Information (web sites, annual returns, etc) Business.com http://www.business.com/http://www.business.com/ About.com http://www.about.com/http://www.about.com/ Strathclyde University Internet resource - BUBL http://bubl.ac.uk/index.html Subject specific – –e.g., www.visitbritain.comwww.visitbritain.com –http://www.tourismtrade.org.uk/MarketIntelligence Research/default.asphttp://www.tourismtrade.org.uk/MarketIntelligence Research/default.asp

16. 16 Business news Updating services on topics of your choice –www.newsnow.co.ukwww.newsnow.co.uk –www.ananova.comwww.ananova.com –www.newsindex.comwww.newsindex.com Looking for Property? www.scottishproperty.co.uk http://www.aspc.co.uk/

17. 17 CASE STUDY Opening a coffee shop in Aberdeen

18. 18 A good starting point COBRA Business Opportunity Profiles –Coffee Shop –Cafe Bar/Designer Bar –Fast Food Outlet –Delicatessen –Internet cafe –Smoothie and Juice Bar

19. 19 Size of Aberdeen market & Demographic profile Aberdeen City Council website Population trends for Aberdeen & Aberdeenshire Age and gender structure of the population and trends Population of neighbourhoods by age # households/ dwellings Census – family life cycle stage, country of origin, ethnic group, religion, number of employees and students, gender and employment, occupation groups, socio economic classifications

20. 20 Market research reports http://www2.rgu.ac.uk/library/resource/alph.htm Keynote - –Coffee and Sandwich Shops 2012 –Hot Beverages 2009 Mintel –Coffee Shops UK 2011 –Coffee UK 2010 (Home consumption) –Coffee Shops UK – Feb 2005, 2007, 2009

21. 21 Number of Coffee Shops UK Keynote 2009

22. 22 More women than men use coffee shops (Keynote 2009)

23. 23 Mintel 2009: Targeting opportunities

24. 24 Keynote 2009 demographic analysis Starbucks is most popular among the 35-44 age bracket, while Costa’s popularity peaks among 25-44-year-olds, reflecting the fact that both these age groups are keen coffee purchasers and enjoy it both as a drink and a means to catch up with friends. Starbucks also attracts a particularly strong following among the 15-19 age band. Key analysis: The particularly youthful appeal of Starbucks suggests that the company could try to engage more with younger consumers at certain times of the day in terms of running special price-deal promotions aimed at this age group. Other ideas which could help Starbuck appeal to this group also includes offering added-value features such as making sure fashionable music magazines are available to read in store, or provide facilities to charge iPods or even download music.

25. 25 Competitive Structure – Keynote Coffee Shops 2009

26. 26 Mintel 2009: Companies and products

27. 27 Passport Database – Euromonitor - Coffee UK 2010

28. 28 Mintel Coffee Shops- UK Feb 2007 Antipathy to coffee from younger drinkers Growing competition Dilemma over food to offer Coffee abstainers (never drink coffee) rose from 13% to 20% from 2004-2006

29. 29 Coffee Shop Market (Source – Mintel – Coffee Shops – UK - 2007

30. 30 PESTE Analysis http://www.coffeeresearch.org/ Oxfam report http://www.maketradefair.com/assets/english/Coffee Market.pdf] http://www.maketradefair.com/assets/english/Coffee Market.pdf Google Answers – demographic profile http://answers.google.com/answers/threadview/id/73 4400.html http://answers.google.com/answers/threadview/id/73 4400.html INeedCoffee.com http://www.ineedcoffee.com/07/coffeebusiness/ http://www.ineedcoffee.com/07/coffeebusiness/ SWOT Analysis of Starbucks http://www.marketingteacher.com/swot/starbucks- swot.html http://www.marketingteacher.com/swot/starbucks- swot.html Coffee consumption trends:The Roast and Pot Coffee Company http://www.realcoffee.co.uk/Article.asp?Cat=trivia&Pa ge=1 http://www.realcoffee.co.uk/Article.asp?Cat=trivia&Pa ge=1

31. 31 Trade Associations British Coffee Association http://www.britishcoffeeassociation.org/ http://www.britishcoffeeassociation.org/ Speciality Coffee Assoc of Europe http://scae.com/ http://scae.com/ International Coffee Association http://www.ico.org/ http://www.ico.org/ Coffee Francise http://www.franchisedirect.co.uk/coffeefranchise s/179 http://www.franchisedirect.co.uk/coffeefranchise s/179

32. 32 Business Insights http://www.bi- interactive.com/index.aspx?StoryID=0&ReportID=1076&Lang=en&MainPage=home http://www.bi- interactive.com/index.aspx?StoryID=0&ReportID=1076&Lang=en&MainPage=home

33. 33 Business Source Premier Database

34. Media : International Newsstand Database Google: Scotsman http://business.scotsman.com/fooddrinkagriculture/UK-coffee-shops-full-of.4118166.jp

35. 35 Media: Business week

36. 36 Media: Telegraph

37. 37 Caterersearch.com press article http://www.caterersearch.com/Articles/2007/05/24/313851/UK-coffee-market-set-to-double-over-the-next-10- years.htm

38. 38 FoodBev.com http://www.foodbev.com/report/uk-coffee-bar-market-still-growing-despite-recessi

39. 39 Competitive Product offer and pricing Trade associations Competitive websites Find local competition –Google Coffee Shops Aberdeen –BizWiki competitors http://www.bizwiki.co.uk/cafes/aberdeenshire/ aberdeen.htm http://www.bizwiki.co.uk/cafes/aberdeenshire/ aberdeen.htm –UpmyStreet Competitors http://www.upmystreet.com/findmynearest/foo d-and-dining/coffee-shops-listings-in- aberdeen.html http://www.upmystreet.com/findmynearest/foo d-and-dining/coffee-shops-listings-in- aberdeen.html

40. 40 Competitive Activity

41. 41

42. 42 Competitive product offer and pricing

43. 43 Product Offer

44. 44 Product offer

45. 45 Keynote Coffee shops 2009 Costa is market leader in terms of number of outlets, Starbucks in terms of turnover Wider range of food and drink offerings –Muffins, scones, cakes, cookies, patisserie, brownies, etc –Sandwiches, rolls, paninis, bagels, croissants –Yoghurts, desserts, fruit –Juices, smoothies, milkshakes –Trend to healthier food and Fair trade coffees Growing competition from department stores, M&S, grocery multiples

46. 46 Case study on coffee shop http://brandandmarket.blogspot.com/2007/ 06/perk-up-coffee-shop-marketing.htmhttp://brandandmarket.blogspot.com/2007/ 06/perk-up-coffee-shop-marketing.htm http://www.benjaminwarsinske.com/2010/0 6/case-study-coffee-shop-in-seattle/http://www.benjaminwarsinske.com/2010/0 6/case-study-coffee-shop-in-seattle/ http://www.baristaexchange.com/forum/top ics/planning-on-opening-a-shophttp://www.baristaexchange.com/forum/top ics/planning-on-opening-a-shop

47. 47 Location of shop Size of market/ Population Competition Available venue Fit with positioning

48. 48

49. 49

50. 50 REFERENCES CHISNALL, P., 2005 Marketing Research. 7th ed. Maidenhead: McGraw Hill. WILSON, A., 2006 Marketing Research: An Integrated Approach 2 nd ed. Harlow:Prentice Hall. KENT, R., 2007 Marketing Research: Approaches, methods and Applications. London: Thomson MCGIVERN, Y.,2006 & 2009 The Practice of Market Research. Harlow:Prentice Hall.Chapter SHIU, E., HAIR, J., BUSH, R. & ORTINAU, D. 2009 Marketing Research. Maidenhead: McGraw Hill KOLB, BONITA. 2008. Marketing Research: A Practical Approach. London: Sage A Newcomers’ Guide to Market and Social Research http://www.marketresearch.org.uk/mrindustry/downloads/newcomers.pdf Davis, R.E. 1993 Experience: The role of market research in the development of new consumer products. Journal of product innovation management. V 10 pp309-317 Von Stamm, B. 2008. Managing Innovation, Design and Creativity. 2nd Edition, Wiley Burns, P 2007 Entrepreneurship and Small Firms 2 nd ed. Palgrave Macmillan