DEFINITION OF MARKET RESEARCH

1. COEUR - BCMBusiness Creativity ModuleMarket Research and Resource AssessmentCarolyn McNicholasc.mcnicholas@rgu.ac.uk

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. MARKET RESEARCH HELPS • Select right market opportunity that is viable • Determine size of market opportunity • Identify potential customers • Identify potential competitors • Forecast revenue and expenses • Develop effective strategies • Know your strengths and weaknesses • Convince lenders and investors • Implementation and Control

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

5. SECONDARY DATA • Collect secondary data first • Low cost and quick and easy to carry out • Involves looking for and analysing data that already exists • Useful source of information especially in the early stages of a project • Important to evaluate the quality of secondary data • Secondary data can be found internally and externally • Official statistics and unofficial statistics

6. 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)

7. 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

8. 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• No control over the data collection • May not be very accurate • May not be reported in the required form • May be outdated • May not meet data requirements • A number of assumptions have to be made

9. EVALUATING THE QUALITY AND USEFULNESS OF SECONDARY DATA • Why was the data collected? • What were the original research objectives? • Who commissioned the research? • Who conducted the research? • When was the data collected? How old is the data? • How accurate are the data? • What quality standards were employed in the research process? • What was the research design?

10. EVALUATING THE QUALITY AND USEFULNESS OF SECONDARY DATA • What was the sampling procedure and sample size? • What methodology was used? • What was the response rate? • How good was the design of the questionnaire/discussion guide? • How were the data processed and analysed? • How consistent is the data? • Is the data comparable?

11. INTERNAL SOURCES OF SECONDARY DATA • sales • customers • products • distribution • financial performance

12. 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.com Thomson Local (www.thomsonlocal.com) Kellys Business Directories (www.kellys.co.uk) National and local government statistics Government publications EXTERNAL SECONDARY SOURCES:

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

14. RGU LIBRARY - EXTERNAL DATA • Business databases • journal/magazine articles (Business Source Premier, Emerald, Science Direct, Sage, Informaworld) • newspaper articles (European Intelligence Wire) • Information on markets (Mintel, Key Note, Global Market information database, COBRA, Business Source Premier) • company information (Business Source Premier) and company financial information (FAME)

15. 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

16. 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.html • The United Nations Cyberschoolbus • http://cyberschoolbus.un.org/infonation3/menu/advanced.asp • The World Bank • http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/0,,pagePK:180619~theSitePK:136917,00.html • The European Commissions Market Access database • http://mkaccdb.eu.int/mkaccdb2/indexPubli.htm

17. FINDING INFORMATION ON A COUNTRY • The OECD website • http://www.oecd.org/countrieslist/0,3351,en_33873108_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.asp • Business Insight Interactive • http://www.bi-interactive.com/index.aspx?StoryID=0&ReportID=1076&Lang=en&MainPage=home • Eurostats facts through figures • http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home

18. 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.uk • www.scrol.gov.uk • www.nomisweb.co.uk • Scottish Executive and Scottish Enterprise • http://www.scottish-enterprise.com/

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

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

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

22. PRIMARY DATAQUANTITATIVE DATA • Quantitative data - techniques used and sample sizes mean data can be statistically analysed • how many? • this or that? • rank the following • how large/small? • how much?

23. Qualitative data - deals with information difficult to deal with in quantitative terms subjective opinions value judgements how? why? what? if? QUALITATIVEDATA

24. One to one interviewing Focus groups Observation methods Web based news groups Experimentation and test marketing (hall tests) http://www.youtube.com/watch?v=jDbce6ZM2oU Surveys – Questionnaires - mail, telephone, personal interviews Web based news groups PRIMARY METHODS

25. CASE STUDY Opening a coffee shop in Aberdeen

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

27. 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

28. Market research reports • http://www2.rgu.ac.uk/library/resource/alph.htm • Keynote - • Coffee and Sandwich Shops 2009 • Hot Beverages 2009 • Mintel • Coffee Shops UK 2009 (Feb 2010 – to be published) • Coffee UK 2010 (Home consumption) • Coffee Shops UK – Feb 2007 • Coffee Shops – UK - 2005

29. Number of Coffee Shops UK Keynote 2009

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

31. Mintel 2009: Targeting opportunities

32. 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.

33. Competitive Structure – Keynote Coffee Shops 2009

34. Mintel 2009: Companies and products

35. GMID – Global Market Information Data Base – Euromonitor - Coffee UK 2010

36. 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

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

38. PESTE Analysis • http://www.coffeeresearch.org/ • Oxfam report http://www.maketradefair.com/assets/english/CoffeeMarket.pdf] • Google Answers – demographic profile http://answers.google.com/answers/threadview/id/734400.html • INeedCoffee.com http://www.ineedcoffee.com/07/coffeebusiness/ • SWOT Analysis of Starbucks 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&Page=1

39. Trade Associations • British Coffee Associationhttp://www.britishcoffeeassociation.org/ • Speciality Coffee Assoc of Europehttp://scae.com/ • International Coffee Associationhttp://www.ico.org/ • Coffee Francise http://www.franchisedirect.co.uk/coffeefranchises/179

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

41. Business Source Premier Database

42. European Intelligence Wire Database

43. Media : Scotsmanhttp://business.scotsman.com/fooddrinkagriculture/UK-coffee-shops-full-of.4118166.jp

44. Media: Business week

45. Media: Telegraph

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

47. FoodBev.comhttp://www.foodbev.com/report/uk-coffee-bar-market-still-growing-despite-recessiFoodBev.comhttp://www.foodbev.com/report/uk-coffee-bar-market-still-growing-despite-recessi

48. Competitive Product offer and pricing • Trade associations • Competitive websites • Find local competition • Google Coffee Shops Aberdeen • BizWiki competitorshttp://www.bizwiki.co.uk/cafes/aberdeenshire/aberdeen.htm • UpmyStreet Competitorshttp://www.upmystreet.com/findmynearest/food-and-dining/coffee-shops-listings-in-aberdeen.html

49. Competitive Activity