COEUR - BCM
Business Creativity Module
Market Research and Resource Assessment
Carolyn McNicholas
c.mcnicholas@rgu.ac.uk
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
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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
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DEFINITIONS OF PRIMARY AND
SECONDARY DATA
• Simple definitions:
• Primary data = data collected for
the first time
• Secondary data = existing data
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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
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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)
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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, startup costs – will depend entirely on the idea
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LIMITATIONS OF SECONDARY
DATA
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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
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EVALUATING THE QUALITY AND
USEFULNESS OF SECONDARY DATA
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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?
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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?
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INTERNAL SOURCES OF
SECONDARY DATA
• sales
• customers
• products
• distribution
• financial performance
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EXTERNAL SECONDARY
SOURCES:
• Business Gateway
• Business Directories
– Yellow Pages
• Commercial databases
– www.yell.com
• Consumer surveys and
– Thomson Local
reports
(www.thomsonlocal.com)
• The library
– Kellys Business Directories
• Trade associations,
– (www.kellys.co.uk)
journals and directories • National and local
• Trade shows and
government statistics
conventions
• Government publications
• The media
• The www.
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BUSINESS GATEWAY
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Business information
Business start-up
Business growth
Increasingly delivered by web-based
solutions
• www.bgateway.com
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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)
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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
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FINDING INFORMATION ON A COUNTRY
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Michigan State University global information
http://globaledge.msu.edu/resourcedesk/
The World CIA Factbook
https://www.cia.gov/library/publications/the-worldfactbook/index.html
The United Nations Cyberschoolbus
http://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
ml
The European Commissions Market Access
database
http://mkaccdb.eu.int/mkaccdb2/indexPubli.htm
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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.html
• A list of national statistics offices websites produced
by the UN
• http://unstats.un.org/unsd/methods/internatlinks/sd_natstat.asp
• Business Insight Interactive
• http://www.biinteractive.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/home
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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/
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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
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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/MarketIntelligence
Research/default.asp
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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/
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PRIMARY DATA
QUANTITATIVE 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?
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QUALITATIVE DATA
• Qualitative data deals with information
difficult to deal with in
quantitative terms
– subjective opinions
– value judgements
– how?
– why?
– what?
– if?
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PRIMARY METHODS
• One to one
interviewing
• Surveys –
• Focus groups
Questionnaires - mail,
telephone, personal
• Observation methods
interviews
• Web based news
• Web based news
groups
groups
• Experimentation and
test marketing (hall
tests)
– http://www.youtube.
com/watch?v=jDbc
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e6ZM2oU
CASE STUDY
Opening a coffee shop
in Aberdeen
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A good starting point
• COBRA Business Opportunity
Profiles
– Coffee Shop
– Cafe Bar/Designer Bar
– Fast Food Outlet
– Delicatessen
– Internet cafe
– Smoothie and Juice Bar
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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
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Market research reports
• http://www2.rgu.ac.uk/library/resource/alph.h
tm
• 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
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– Coffee Shops – UK - 2005
Number of Coffee Shops UK
Keynote 2009
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More women than men use
coffee shops (Keynote 2009)
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Mintel 2009: Targeting
opportunities
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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.
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Competitive Structure – Keynote
Coffee Shops 2009
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Mintel 2009: Companies and
products
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GMID – Global Market Information
Data Base – Euromonitor - Coffee
UK 2010
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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
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Coffee Shop Market (Source –
Mintel – Coffee Shops – UK - 2007
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PESTE Analysis
• http://www.coffeeresearch.org/
• Oxfam report
http://www.maketradefair.com/assets/english/Coffee
Market.pdf]
• Google Answers – demographic profile
http://answers.google.com/answers/threadview/id/73
4400.html
• INeedCoffee.com
http://www.ineedcoffee.com/07/coffeebusiness/
• SWOT Analysis of Starbucks
http://www.marketingteacher.com/swot/starbucksswot.html
• Coffee consumption trends:The Roast and Pot Coffee
Company
http://www.realcoffee.co.uk/Article.asp?Cat=trivia&Pa
ge=1
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Trade Associations
• British Coffee Association
http://www.britishcoffeeassociation.org/
• Speciality Coffee Assoc of
Europe
http://scae.com/
• International Coffee Association
http://www.ico.org/
• Coffee Francise
http://www.franchisedirect.co.uk/coffeefranchises
/179
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Business Insights
http://www.bi-
interactive.com/index.aspx?StoryID=0&ReportID=1076&Lang=en&MainPage=home
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Business Source Premier Database
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European Intelligence Wire
Database
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Media : Scotsman
http://business.scotsman.com/fooddrinkagriculture/UK-coffee-shops-full-of.4118166.jp
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Media: Business week
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Media: Telegraph
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Caterersearch.com press
article
http://www.caterersearch.com/Articles/2007/05/24/313851/UK-coffee-market-set-to-double-over-the-next-10years.htm
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FoodBev.com
http://www.foodbev.com/report/uk-coffee-bar-market-still-growing-despite-recessi
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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
– UpmyStreet Competitors
http://www.upmystreet.com/findmynearest/foo
d-and-dining/coffee-shops-listings-inaberdeen.html
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Competitive Activity
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Competitive product offer and pricing
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Product Offer
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Product offer
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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
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Case study on coffee shop
• http://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.baristaexchange.com/forum/top
ics/planning-on-opening-a-shop
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Location of shop
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Size of market/ Population
Competition
Available venue
Fit with positioning
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REFERENCES
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CHISNALL, P., 2005 Marketing Research. 7th ed. Maidenhead: McGraw Hill.
WILSON, A., 2006 Marketing Research: An Integrated Approach 2nd 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
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Burns, P 2007 Entrepreneurship and Small Firms 2nd ed. Palgrave Macmillan