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Report on Plan to determine Buying Behaviour
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Added on 2019-12-03
Report on Plan to determine Buying Behaviour
Added on 2019-12-03
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Business Decision Making
TABLE OF CONTENTSINTRODUCTION .....................................................................................................................4TASK 1......................................................................................................................................4LO1: A, LO1: B ...................................................................................................................4TASK 2......................................................................................................................................7LO2: .....................................................................................................................................7TASK 3 ...................................................................................................................................12LO3: ...................................................................................................................................12TASK 4 ...................................................................................................................................13LO4.......................................................................................................................................13CONCLUSION ......................................................................................................................17REFERENCES ........................................................................................................................18
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INTRODUCTION Business decision making is the process of choosing and optimal decision amongvarious alternatives. In order to make effective decisions, organization requires the accurateand reliable information from market (Romford, 2014). XYZ is the medium-size coffeepackaging company operating in London region and the company wants to develop a newcoffee-based drink for coffee shop customers. The senior management team wants toindentify the emerging trends in this market. They also wish to examine the financial viabilityof introducing this new product. In the present report a plan has been carry out to determinethe consumer profile, preference, attitude and buying behaviour related to coffee drinks.Primary and secondary sources have been analysed to collect the information. Descriptivestatistics have been used to identify the financial viability of project.TASK 1LO1: AIn the given business scenario a medium-size coffee packaging company wants todevelop a new coffee-based drink for coffee shop customers. In order make optimal decision,information such as consumer profile, preference, attitude and buying behaviour of users willbe required. The following points represent the data collection methods such as primary andsecondary data collection: Primary Data collection method -As per primary research, the data areto be collected for the first time. In order to collect primary data, market survey willbe conducted in which a questionnaire will be prepared. The questionnaire includesquestions related to customer preference over coffee products and their expectationfrom a new product. Secondary method of data collection- To invest in the development of newproject company will also require market information which includes size of industry,market size, market demand and all. In order to obtain such information secondaryresearch will be used (Haynes, 2002). The trend within the industry, customer profileand their expectation will be gathered by analysing secondary sources such asbusiness articles, books as well as journals. The information available on socialnetworking sites will also be useful in for making optimal decision. The size of the4
market for coffee drinks, competitors, and market structure and market shares of keyplayers can also be analysed using secondary sources (Hedgebeth, 2007).Survey methodology used for the collection of primary data:The foremost method to collect reliable and accurate data from the market is knownas survey. Before making a decision over developing a new product, business has to conducta market research and collect all the data that is relevant for the research purpose. Whileusing survey method firm can collect valid and authentic information on a topic. In respectwith present case, it will help business in identifying the needs and wants of customers andthe areas where services need to be improved. In present report, questionnaire method is to beused to collect the information of customer preference. Pros and corns of survey methodologyBy using such method the data can be collected while following a standardizedprocedure (Singh, 2007). It is an easy method for data collection and questionnaire aredesigned as per the information that is to be collected. Through distributing a questionnaire,right target group can specifically be targeted and specific answers can be derived fromrespondents in a specific manner. This is easy way to collect and analysis the data and tomake relevant presentation. On the other hand, it is an expensive method of primary datacollection. Sometimes it will become very difficult to make a specific view upon a businessproblem (Bulmer, 2013). The research has been conducted in the posh areas of London. Therespondents of the questionnaire will be the existing and potential customer who use coffeeand related product in a coffee shop. The Questionnaires has been sent to the customer via E-mail and other social networking sites. In addition to that most of the customers wereapproached in the coffee shops at various locations. Almost 60 questionnaires found filledcorrectly therefore used for further analysis.Sampling frame used for the collection of primary data and its advantages anddisadvantages Sampling method is used to select the respondents from a large population. For thepresent study, simple random sampling method will be used so as to collect the data fromrespondents. In this sampling method every respondent of a specified size from thepopulation has an equal chance of being selected for the research (Moore, 2010). The majoradvantage of this method is that the respondents are given equal chance to be selected in theinvestigation. In respect with this study, use of such method allows every customer who uses5
the coffee product has been given a chance to take part in the research. However, thedisadvantage of such method is that it can be difficult to contact all of the chosen samples. Inaddition, an unrepresentative sample may exist by chance. The Sample size of thisinvestigation is 60 customers of London city.Target population Customer of Kitchen King restaurant Sampling method Simple random sampling Research instrument Questionnaire Research location London city Sample size 60 samples Sampling unit Upper , middle and lower class customers LO1: B Size of the market for coffee drinksAs per the investigation made for 2014, total UK coffee shop market is estimated at16,501 outlets along with this it continued to show strong sales growth of 6.4% with anannual turnover of £6.2 billion in last year. In addition the findings of Allegra Strategiesdefinitive report, Project Café13 UK, there are around £2.6 billion branded coffee chainsegment have been recorded across 5,531 outlets. The need of coffee packaging company isstill needed to procure quality coffee. There is seen a huge growth within coffee shop sectorfrom last 15 years and now it becomes the most successful brand within the UK economy(TWCC NUS Coffee Market Presentation, 2015). 6
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