Proposal Of AN ANALYSIS OF FACTORS THAT INFLUENCE CONSUMERS COFFEE CONSUMPTION PATTERN

Course: Marketing Research Course Code: MKT 414 Section: 02

Executive Summary For many people coffee is just a drink that acts as an alternative to tea or soda pop. For others, coffee is necessary for survival to help them stay awake during long meetings, and for some, coffee is an art that requires much planning and high efforts are made to maintain its best quality. In Bangladesh coffee is not yet popular among the mass population of Bangladesh. There can be various reasons of not yet habituated with coffee consumption compared to tea. It might force the Marketers to rethink and reposition. May be there is a problem regarding their promotional activities, product design, place accessibility or simple the pricings strategies. In this study we will analyses the factors that influence consumers coffee consumption pattern and the reasons holding back people from consuming coffee compared to tea. For conducting this research we will take the help of primary and secondary sources of data. At first i.e., we have identified the factors or independent variables which influence consumer consumption of coffee by conducting exploratory research (primary source of data). In later parts of the project well conduct survey with the help of questionnaire. The data found from the questionnaire then will be analyzed in mathematical model. The conclusion part of the report will provide an insight of consumer preference regarding the factors that influence consumers coffee consumption pattern.

Background Bangladesh is a developing country with a rich heritage and history. The history goes back to the British colonization where we were forced to get habituated to tea consumption. Unlike the history of tea consumption which came with our origin and birth of Bangladesh, coffee is a product introduced by Change agents; the Multinational Companies. There are many brands of coffee available in Bangladesh like Davidoff, MacCoffee, Lavazza etc, but none is as strongly positioned in the consumer mind as Nescafe! Nescafe by Nestl Bangladesh Limited started its first commercial production in Bangladesh in 1994 There are many coffee lounges in Bangladesh like Barista, but none is as popular as Coffee World! Coffee world came in Bangladesh in the year 2005. Coffee was introduced in Bangladesh a long time back, yet surprisingly consumers are not yet habituated with coffee consumption compared to tea. The grandeur of Coffee World or the promotional campaigns of Nescafe are successful and well appreciated, yet the overall mass population is not that much into coffee consumption. Generally, the corporate personnel prefer coffee because they are the professionals who have to be around people from other nations and culture. Moreover students, who are the young, change-adaptive group, consume coffee mostly. Interestingly, they do not fall under the general population of Bangladesh. Hence, this revelation spawned for us a platform to research on. Our research is intended to unleash factors that influence coffee consumption and also an analysis of the reasons holding back people from consuming coffee compared to tea.

Significance of the research

Our observation tells us that compared to tea; coffee is not yet popular among the mass population of Bangladesh. This gives us a reason to have our foundation of the research enclose around this problem. We believe that the findings from this research will reveal some interesting factors that will help marketers and manufacturers put attention to this statistical evidence. The fact that there might be a problem regarding the Marketing Mix of brands like Nescafe and Lounges like Coffee World, will give a platform to work on and improve. The findings will help Marketers rethink and reposition. Maybe there is a problem regarding their promotional activities, product design, place accessibility or simple the pricings strategies. This will give scope to the MNCs to improvise on and boost their sense, brand awareness and national presence! Objective of the research The overall objective of this causal research is to identify the factors that influence consumers coffee consumption. This broad statement has two parts: 1. Factors people consider when they consume coffee 2. Factors people consider when they consume tea compared to coffee Through an initial exploratory research we have identified five factors under each category. Our findings revealed that: 1. Factors people consider when they consume coffee are- taste, variation in taste, to stay awake at night, to sooth headache, and the unique rich smell of coffee! 2. Factors people consider when they consume tea compared to coffee are- high price of coffee, no local coffee brand available, side effects associated with coffee, usually coffee not kept at home, and tea is more traditional! Finally, we have specified some objectives:

1. Identify the factors that influence consumers coffee consumption. 2. To evaluate how these key factors are rated by consumers 3. To identify the significance of different variables affecting consumers consumption Problem Definition The objective of the research is to find out what are the factors that influence consumers coffee consumption pattern. To identify the possible factors at first we went through an initial Exploratory (Qualitative) marketing research to identify some necessary steps for having a clear concept about our main purpose or objective of the study. Finally, we have
conducted a conclusive research to find out the relationship among factors that influence the consumption pattern of consumers towards coffee.

The problems are given below: Core Problem Which Factors influence consumers in their coffee consumption pattern? Marketing Research Problems What are the most influential factors those may have significant impact on consumers for their coffee consumption? Based on which factors, should the Marketers of different coffee brands in Bangladesh be more concerned while trying to change the attitude towards coffee consumption?

Approach towards the problem

Theoretical Foundation To identify the influencing factors regarding consumers coffee consumption we have conducted an exploratory research and according to that we have found some triggering factors. These factors will be our independent variable and these factors need to be address: Factors people consider when they consume coffee are: Taste: Coffee has an unique bitter taste that makes it different from tea Variation in taste: Both coffee brands like Nescafe and coffee shops like Coffee World provide a variety of flavors. To stay awake at night: Caffeine in coffee helps people to stay awake at night. To sooth headache: Caffeine in coffee sometimes help to control headache Unique Smell: Sometimes people know the taste of coffee by just smelling it. The smell invigorates them and refreshes their senses. Factors people consider when they consume tea compared to coffee: High price of coffee: A bottle of coffee or a cup of at a coffee shop are quite expensive for price sensitive Bangladeshis No local coffee brand available: The sovereign feeling allows people from not consuming coffee. Side effects associated with coffee: Sometimes too much of coffee can cause addiction and dehydration and other body weakness Usually not kept at home: Parents usually do not prefer coffee compared to tea and hence they do not buy it often with other groceries. Tea is more tradition: By culture we are used to tea and hence tea is what we enjoy and tea is what we offer our guests at home Analytical Model

For our marketing research process, we will follow some Mathematical Models to quantify our findings and use the equations and formulae to interpret the results and analyze them as such. Research Question The broad statement is What are the factors that influence consumers coffee consumption pattern? RQ1: Does taste influence coffee consumption? RQ2: Does variations in flavor influence coffee consumption?? RQ3: Does staying awake at night influence coffee consumption? RQ4: Does soothing headache influence coffee consumption? RQ5: Does unique smell influence coffee consumption? Hypothesis
H1: Taste influences coffee consumption.

H2: Variations in flavor influences coffee consumption H3: Staying awake at night influences coffee consumption. H4: Soothing headache influences coffee consumption. H5: Unique smell influences coffee consumption. Research Question The broad statement is What are the factors people consider when they consume tea compared to coffee? RQ6: Does high price of coffee influences tea consumption compared to coffee?

RQ7: Does lack of local coffee brands influence tea consumption compared to coffee? RQ8: Does side effects associated with coffee influence tea consumption compared to coffee consumption? RQ9: Does unavailability of coffee at homes influences tea consumption compared to coffee? RQ10: Does the fact tea is more traditional influence tea consumption compared to coffee? Hypothesis H6: High price of coffee influences tea consumption compared to coffee H7: Lack of local coffee brands influence tea consumption compared to coffee H8: Side effects associated with coffee influence tea consumption compared to coffee consumption H9: Unavailability of coffee at homes influences tea consumption compared to coffee H10: the fact tea is more traditional influence tea consumption compared to coffee

Data Collection Primary data will be collected from the students of East West University. Sample size is approximately 60.

Data Analysis With the help of mathematical model we will analyze the results.

Report Presentation

The report will be submitted at the end of the semester Summer 2011. Time Allocation Particulars Proposal paper Questioner Data collection Analyzing and Preparing Submission and Presentation Total Limitations We have time constraint The students with whom weve conducted the survey dont fall into the general population. Time 9 days 14 days 10 days 10 days 1 day 44 days

Appendix 1. http://www.etceterabd.com/coffee_world.php 2. http://www.teaboard.gov.bd/# 3. http://www.maccoffee.com/ 4. http://bangladesh.esources.co.uk/suppliers-wholesalers/29989/

Exploratory Research

On An Analysis of Factors that Influence Coffee Consumption

Being students of East West University, and as a requirement of the course Marketing Research, we are conducting this research. All the content of this research will be used only for academic purpose and the respondents identity will be kept anonymous. It would be very kind of you, if you could answer the following questions and assist us with our research. Q1: What are the factors that influence you in your coffee consumption?
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Taste of coffee; bitter Ease of preparation Availability in the shops Symbol of luxury and status Variation in taste Availability of sachets Invigorating or energizing or to get stamina To stay awake at night Not to stay awake at night To sooth headache Availability of instant coffee Portability of sachets of instant coffee Accentuates a special occasion International Brand name associated with coffee Because of the unique smell Taste of sachet and coffee in bottles not same Other___________________________________________

Q2: What are the factors you think makes people not yet habituated with coffee consumption compared to tea? High price Not accustomed with the bitter taste No local brand available Do not know the proper procedure to make Not enough substitute Not enough competing brands available other than Nescafe Not available in shops compared to tea Side effects of coffee e.g. dehydration Fear of getting an addiction to coffee Usually not kept at home Tea is more traditional Other ________________________________________

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