The coffee shop business is a multimillion business in the United States. The industry is dominated by the likes of Starbucks, McDonald's, Burger King, and Dunking Donuts (Zikmund, Babin, & Griffin, 2013) . These companies are multinational. While they are headquartered in the United States, they have thousands of branches across the world. The four companies have been operating for a while. They are, therefore, a household name in the United States. It is, hence, difficult for a newcomer to enter the market and match the competition of the four companies. Even so, there are still opportunities for an entry that any serious business can take advantage of. It is for this reason that Joe Brown is ready to launch his coffee shop after spending close to 30 years observing Starbucks' progress (Zikmund, Babin, & Griffin, 2013). Even so, Joe Brown knows that starting a business that will rival the big four coffee makers will involve a great deal of research. He however believes that he is better of hiring someone to do the research. As such, in this essay, I will play the role of a research consultant by designing a structured plan that will identify the problems and needs of Joe Brown's firm.
Problem Discovery and Definition
Research Objectives
To use the current research studies to understand current market trends in the coffee-making business
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To draw conclusion s from previous studies
To find data showing coffee consumption patterns and the number of coffee shops around the United States.
Research Questions
What coffee do Americans prefer?
What location is best for a coffee shop?
What makes Joe Brown's Coffee shop popular?
What markets in the United States should Joe Consider for his coffee shop startup?
Exploratory Research Techniques
Primary Research Methods
Data will be collected directly from the subject of investigation. In this case, the subject is coffee shop customers who frequent the four major coffee companies. Joe Brown does not necessarily have to collect the information by himself for what matters is the fulfillment of the primary objective of the research. Primary research is more in-depth as compared to secondary research that depends on previous studies.
Some of the methods to be used in this research include:
a. Observations
The researcher will not come into contact with the subject. Instead, he will watch the subject from afar. In this case, the researcher will visit the various coffee shops and observe the subjects' behavior with or without their knowledge.
b. Surveys
The researcher will conduct online and offline surveys to try and establish customers' sentiments about the coffee being sold in different coffee shops.
c. Interviews
Interviews can be time-consuming. Even so, the researcher will conduct interviews to collect detailed information on the state of the American coffee industry. The researcher will also record the interviews for future reference.
Secondary Research Methods
Secondary research uses previous studies to draw conclusions on a particular subject. Some of the credible sources of information to be used include periodicals, magazines, papers, and articles. Below are the secondary research methods that will be used in this exploratory research.
a. Literature
In particular, the research will depend on articles, magazines, and publications such as Barista Magazine, Coffee Talk Magazine, BeanScene Magazine, and Caffeine Magazine. These magazines have the latest information on trends in the coffee-making business.
b. Online Sources
This is the easiest way to obtain the latest information on coffee trends. There is a wealth of information that can be found on the internet (Fielding, Lee, & Blank, 2017). The researcher will use the news section of Google search to find the latest news on Starbucks, McDonald's, Burger King, and Dunking Donuts. The researcher will only focus on credible sources.
c. Case Study
So far, Joe Brown has already gone through four case studies on the four major coffee shops. In the first study, the researcher concluded that McDonald's coffee tastes better than the rest. The second study concluded the Starbucks' coffee was the best in as far as the taste was concerned. These two studies are dependent on an individual's views after drinking different samples of coffee. As such, they are not credible. The third and fourth studies are equally weak since they depend on a small sample space.
Problem Definition
Joe Brown's main problem is conducting comprehensive research that will help in starting the "A Cup of Joe" coffee shop (Zikmund, Babin, & Griffin, 2013). The current research is not adequate and, therefore, cannot be used to make informed decisions about Brown's business venture. Most of the analyzed studies base their conclusions on unconfirmed claims. What is more, Joe wants data that can show him coffee consumption patterns in the United States, yet he has not yet found any dependable information on the internet. For this reason, Joe can use his thirty years of experience in research to conduct research. Even so, he is better of hiring a research consultant who does not have any emotional attachment to "A Cup of Joe". the consultant will conduct an unbiased research that will help Joe in determining whether he business he is about to launch is viable.
Planning the Research Design
Observation
The researcher will post volunteer observers in ten different coffee shops across four different cities. The observers will be required to visit the coffee stores, purchase coffee, and watch how services are delivered and how customers respond to the services. The observers will also have friendly conversations with customers to establish their views on the coffee industry in general.
Surveys
Both online and offline surveys will be conducted to try and establish the popularity of the four main coffee shops. The surveys will be conducted in different cities so as to obtain generalizable results. The researcher will hire the services of online paid survey sites such as Pinecone Research and Paid Viewpoint to get credible results. The offline surveys will target particular consumer segments that are known to frequent coffee shops. The researcher will design questionnaires with both close-ended and open-ended questions to try and collect honest opinions about the services being offered by the four major coffee shops.
Moreover, the surveys will focus on people from different genders, age groups, educational background, and social status.
Secondary Data Study
Not all studies are credible. The researcher will use the latest peer-reviewed journal articles, periodical magazines, and coffee news from online sources to obtain information (Guest, Namey, & Mitchell, 2013). Peer-reviewed journals contain relevant information that has undergone the highest level of academic scrutiny. For instance, the Tea and Coffee Trade Journal and the Journal of Foodservice Business Research are some credible sources of information. Additionally, the research will use information obtained from Barista Magazine and Coffee Talk Magazine. These magazines contain the latest information on trends in the coffee industry. Articles contained therein are also written by coffee experts.
Sampling
Sampling is selecting a small portion of a population to be used for an experiment or a study. The researcher will use probability sampling. In probability sampling, samples are selected randomly. All the members of the sample population will have an equal probability of being chosen (Fielding, Lee, & Blank, 2017). The researcher's selection of probability sampling, as opposed to non-probability sampling, is based on the fact that the research should be based on a sample that represents a real-life population. In the same vein, the researcher will use simple random sampling. While simple random sampling can be time-consuming and tedious, it is also accurate.
Data Gathering
Before conducting the research, the researcher should decide how to conduct the research, what questions to ask, what observations tom make, and how to ensure that the whole process is unbiased and nonpartisan (Guest, Namey, & Mitchell, 2013). The researcher will disguise the purpose of the study to ensure that the respondents are as honest as possible in their responses. For instance, the study will utilize disguised non-participant observers to obtain information.
While gathering information for the research, the following issues must be put into consideration:
i. Data Reliability
Given that the data to be obtained from this research is to be used to make important business decisions, the researcher must ensure that the reliability of the study can be tested by finding out who wrote the article, what was his motivation, and where he obtained his information (Mora, 2011). Additionally, such issues as the timeliness of the data, the level of accuracy, and the limitations and whether the author has the authority to conduct the study will be considered. For instance, the first two studies featured in the case study are not reliable because they are dependent on one individual's taste.
ii. Data Suitability
Not all data is suitable. For instance, the researcher cannot use data obtained from the Brazilian coffee industry to make conclusions about the American market. For this reason, any data that will be considered as unsuitable will be removed from the secondary sources of data (Mora, 2011). The researcher will also scrutinize the object, scope, and nature of the phenomenon being studied to determine the suitability of the studies.
iii. Adequacy of Data
The research to be conducted will only depend on data that achieves a certain level of accuracy. If the data cannot meet the expected threshold, it will not be used in the study. For instance, the data obtained from the four studies is too narrow to be used to make conclusions. As such, it will not be used in the research.
Data Processing and Analysis
a. Data Cleaning
Not all the data that will be collected will be relevant to the research. Therefore, the first step of data processing will be data cleaning. In this process, the researcher will get rid of duplicate information and irrelevant data (Fielding, Lee, & Blank, 2017). For instance, some of the questionnaires will be incomplete or unfilled. Such questionnaires will be expunged from the record. Data cleaning is done for the sole purpose of obtaining accurate data.
b. Data Analysis
Once the data is clean, it is ready for analysis. It is at this stage that the researcher will establish whether the obtained data is adequate or whether there is a need for more data. Data software such as SPSS and other analysis tools should be used to understand and interpret the data.
i. Text Analysis
The researcher will use text analysis to establish a pattern in the data obtained. In other words, the raw data will be used into meaningful data that will be used to make important business decisions.
ii. Statistical Analysis
The statistical analysis deals with numbers. It is a process where a set of sample data is analyzed and interpreted. To make this process much easier, the researcher should use the latest statistics software that can do all the tedious mathematical procedures such as calculating the mean, the medium, statistical deviation, and regression, among other procedures.
iii. Predictive Analysis
This is an important data analysis tool, for it gives us a clear picture of what is likely to happen in the future (Fielding, Lee, & Blank, 2017). The analysis will be based on current and past data. It is, however, worth mentioning that forecasting is a simple estimate. Hence, the business should not fully depend on the forecast but instead, use it with other data analysis methods to make informed business decisions.
Conclusions
It goes without saying that Joe is capable of conducting the research by himself. However, for comprehensive and in-depth research, he should hire the services of a research consultant. As demonstrated in the report, Joe has failed to obtain credible sources of information that can give him a clear idea of the American coffee industry. The four studies he chose are not reliable because they depend on a small sample space. Moreover, they are not credible for they are based on individuals' opinions. For this reason, a fresh research study should be conducted. The research will depend on both primary and secondary sources.
The study to be conducted will be able to determine consumer preferences across the United States. The primary research will depend on observations and both online and offline surveys to analyze the coffee market. On the other hand, secondary research will be based on the latest coffee magazines and peer-reviewed journals. The timeliness of the secondary sources is important for the coffee market experiences new trends every year.
Some of the key deliverables that will be important to Joe in making the decision to start his "A Cup of Joe" coffee shop include:
Establishing coffee consumption patterns and the number of coffee shops around the United States.
Coffee business profitability
Challenges of operating a coffee shop
Current trends in coffee preparation and pricing strategies
The perfect location for a coffee shop in the united states
Methods of enhancing the consumer experience in the coffee business
If Joe succeeds in starting his coffee business, he will be up against big names such as Starbucks, McDonald's, Burger King, and Dunking Donuts. These companies have operated for years both in the United States and overseas. Hence, they have a competitive advantage over new entrants in the market. It is for this reason that Joe requires comprehensive research on these companies' operations in the United States.
References
Fielding, N., Lee, R. M., & Blank, G. (2017). The SAGE Handbook of Online Research Methods. New York: SAGE Publications Limited.
Guest, G., Namey, E. E., & Mitchell, M. L. (2013). Collecting Qualitative Data: A Field Manual for Applied Research. New York: SAGE.
Mora, M. (2011, February 21). Validity and Reliability in Surveys . Retrieved from Relevant Insights: https://www.relevantinsights.com/blog/validity-and-reliability
Zikmund, W. G., Babin, B. J., & Griffin, M. (2013). Busines Research Methods. New York: Cengage Learning.
