Marketing Research Project

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Table of Contents
Page Number
I. EXECUTIVE SUMMARY………………………………….……………………………...1
II. INTRODUCTION
A. Description of Business…………………………………………….……………….2-3
B. Description of Community…………………………………………………….…….3-4
C. Description of Business……………………………………………………………..4-5
III. RESEARCH METHODS USED IN THE STUDY
A. Description and rationale of research methodologies……………………………….5-8
B. Process used to conduct the selected research………………………………………8-9
IV. FINDINGS AND CONCLUSIONS OF THE STUDY
A. Findings of the research study………………………………………………...……9-11
B. Conclusions based on findings………………………………………………..…...11-12
V. PROPOSED REBRANDING PLAN
A. Objectives and rationale of the proposed rebranding plan………………….…….12-13
B. Proposed activities and timelines………………………………………….………13-15
VI. PROPOSED BUDGET
A. Cost associated with proposed rebranding strategies…………………………………16
B. Proposed metrics to measure return on investment………………………………...…17
VII. BIBLIOGRAPHY…………………………………………………………………………18
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8-Twelve Oriental Market
Executive Summary
Overview: 8-Twelve Oriental Market is recently opened family business located in San Leandro,
California. Their main focus in the market is their drinks: milk tea, tea, and smoothies. A
majority of their customers are predominantly teenagers and young adults as bubble tea remains
one of the most popular trends. Since their opening day, they have accumulated an
overwhelming amount of loyal and returning customers.
Goal: After an extensive amount of research, we have discovered that 8-Twelve could have a
much larger potential market if they were to improve their company image while engaging in
more efficient ways to reach out to feasible customers. Hence the reason why we have decided to
rebrand 8-Twelve in hopes of providing their business with a newly revamped brand name along
with a better way to interact with customers. Also, since one of the owners of 8-Twelve is not
happy with the current logo, we plan to create a new one that satisfies everyone’s taste.
Current Brand: 8-Twelve has been doing fairly well in giving their brand name a positive
connotation, but not many people are aware of their presence as they rarely put any effort into
making themselves heard. After conducting a number of surveys and interviews, we have come
to discover that the workers at 8-Twelve are always friendly and welcoming. When people think
of 8-Twelve, they see somewhere that gives them a place to relax and hang out with friends
while enjoying good drinks and good food.
Rebranding Plan: In order to create a new logo for their new brand, we must meet up the
owners and devise a new design that will appease both David, and Tom who are the co-owners
of this family business. To construct lasting social media emergence for 8-Twelve, we plan on
creating a Twitter as well as Instagram. Due to social media being one of the biggest gold mines
for advertising, we concluded that the best way to promote their brand would be to appeal to
users of the most popular virtual communities and networks. Lastly, we plan on relocating their
business as we have discovered that there has been an extent of people complaining about
finding parking and their inconvenient location.
Timeline for Implementation, Budget, Metrics: We will begin our rebranding plan by meeting
with the owners to discuss the changes in January. The entire plan will take course over the
months of January until its grand opening in August. The total costs of redesigning the logo,
creating a social media presence, and moving locations will be approximately $470,495. We plan
on measuring the success of the rebranding plan by comparing previous income and sales rates
with the influx of sales at the new location. Also, the amount of followers, “Likes” and “Shares”
on Instagram, Twitter, and Facebook will determine if the creation of a social media presence
was worth it.
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II. INTRODUCTION
A. Description of the Business
8-Twelve was first established on March 4, 2013 with its sole purpose being the complete
satisfaction of all customers. As the owner of 8-Twelve, David Kuang, expressed with a
genuinely sincere expression, “I want customers to feel relaxed when they come in, and leave
happy.”
Located on the corner of Dutton and E. 14th Street in San Leandro, California 8-Twelve
can’t be missed with its newly modern physique. 8-Twelve is also a market in addition to the
beverage allotment. Upon entering the store, you are first faced with the bubble tea and
beverage counter with the do-it-yourself toppings bar. Behind the counter is the market,
which has a wide variety of goodies ranging from snacks to toys to makeup and cosmetics.
With the spacious interior, there are many chairs and tables located throughout the market;
there is even a set of sofas along with a Karaoke machine and a TV for entertainment.
The owner, originally residing in San Francisco noted the year-round foggy and chilly
weather which, of course, would be unsuitable for opening a cold beverage market. Due to
San Leandro’s location in the Bay Area, it has a much warmer climate as opposed to the
weather in San Francisco, making this location much more sufficient to thrive in the
economy. Not only does San Leandro have a more stable seasonal weather, but the cost for
leasing this facility is much cheaper than it would be elsewhere. This newly opened business
is a family partnership with two owners.
Operating hours start from 9 a.m. until 11 p.m. Monday through Sunday, with a total of
six employees who work part-time, switching off shifts starting from 10:30 until 9:00 p.m.
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As an employee at FedEx in San Francisco, the owner, David, claims that his job already
provides him with enough money to make a decent living. Stating that he had too much time
on his hands, he decided to start up his own business here in San Leandro. Deriving the name
“8-Twelve” from a Hong Kong childhood movie, David deemed this name to be “perfectly
funny” for his new business. This gives him nostalgic feelings of his childhood when he used
to always watch comedy and action films.
B. Description of the Community
San Leandro was first incorporated on March 21st of 1872. With the Hayward Fault
running through the city, it is now home to a population of nearly 86,890 people. San
Leandro is one of the most historically rich places with many previous eras full of culture and
religion. San Leandro in the 21st Century now includes growing leadership, partnerships,
communities, and innovation. With the new installation of a city-wide fiber optic loop,
residents and communicate with each other much faster via the internet. The following are
percentages given for each age range in San Leandro:
● Under 19 – 25.8%
● 20 to 39 – 29.8%
● 40 to 69 – 32.8%
● 70 and older – 11.5%
The overall female population is predominant to the percentage of the male population,
with a ratio of 52% to 48%. The median age of all the residents in San Leandro wavers around
39 years. Being the fifth most diverse city in the United States, many different cultures and
religions have integrated themselves into the pores of the city. The percentages for each race are
as given:
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● Hispanic – 27,209 (31.6%)
● Asian – 22,595 (26.3%)
● White – 20,090 (23.3%)
● Black – 12,012 (14%)
● Mix (2 or more races) – 3,347 (3.9%)
● Pacific Islander – 780 (0.9%)
● American Indian – 34 (0.04%)
C. Description of the Business or Organization’s Mission, Target Market and
Existing Branding Efforts
While 8-Twelve receives a variety of customers both female and male of different races,
religion, and age they do not have a specific target market. This is due to the fact that their
specialty products are not limited or narrowed down to any specific market of consumers. With
their most popular products being milk tea, smoothies, sandwiches, and crepes, 8-Twelve appeals
to a broad consumer market that includes a wide spectrum of ages. Since they have no specific
target market, their mission statement is simply the desire for customers to come in and feel
comfortable in the environment they have set. Based on what David said, managing 8-Twelve is
just a hobby for him. Since this is a newly opened business, he had stated that it would still be a
while before they can actually profit from sales due to having to reimburse themselves for the
start-up costs. David had voiced that, “I don’t really care about the money since I already have a
job at FedEx and I am already happy with that. I just wanted a place where people can walk in
and feel comfortable while enjoying good food.”
8-Twelve promotes their business mainly through word-of-mouth, but they also have a
Facebook page to keep people updated on any upcoming events or promotions. In addition, they
are listed on Yelp with a surprising turnout of reviews for such a newly opened business. Social
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Media is very important to 8-Twelve as a means of promotion, due to the fact that a majority of
their customers are part of the generation that enjoys using Instagram and Twitter to update the
world about their every thought and action. 8-Twelve also gains recognition from schools around
the area such as San Leandro High School and Arroyo High School. They participate in
fundraisers for various clubs in which every customer that presents a coupon saying they are a
participant, a percentage of the purchase will be given to that organization.
III. RESEARCH METHODS USED IN THE STUDY
A. Description and rationale of research methodologies selected to conduct the
research study
The objective of our research is to rebrand a local business– 8-Twelve. Our goal was to
revolutionize the way people view this business; in other words, our mission is for existing or
potential future customers to reflect upon 8-Twelve and harbor positive feelings. We used both
primary and secondary research in conducting our studies of this business. Primary research is
the information and data that is collected for the first time. Our primary research consists of
interviews with one of the owners himself, an employee, and to gain a better understanding of
what the teen population thinks of 8-Twelve, a survey was created and distributed among fellow
students for their opinions. Secondary research is research that already exists and can be
obtained through the Internet or from books. We browsed web for additional information and
customer feedback with respect to this business.
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Primary Research
Personal Interviews:
1. David Kuang, 8-Twelve Co-Owner
2. Yuki Hu, 8-Twelve employee
David Kuang, 8-Twelve Co-Owner
Rationale
In our first step of analyzing the existing brand of this business and to gain further
understanding regarding their target market as well as their mission statement, we conducted an
interview with one of the Co-Owners of 8-Twelve, David. The interview questions were
predominantly based around the management of the business and what they believe their current
brand to be. We were able to collect information on the foundation and thought process on the
construction of 8-Twelve, as well as their vision for its future. Through this interview, we were
able to conclude that their main method of promotion is through word of mouth and social
media. They believe that if customers are satisfied and happy with their service, then they will
most definitely tell their friends and family about 8-Twelve.
Yuki Hu, 8-Twelve employee
Rationale
Yuki is a part time employee at 8-Twelve, working from 11am till 5pm on weekdays and
10:30am till 7pm on weekends. Yuki says, “David’s constant upbeat attitude and positive energy
puts me in a happier and more relaxed mood.” David’s genuine passion for his business along
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with his ambition to conciliate every customer is very much contagious-everyone leaves in a
pleasantly pleased mood. Subsequent to the interview with Yuki, we organized a simple
customer questionnaire to attain on-site customer feedback. The responses we received were
quite the correlation as to what Yuki had conveyed about the positively peaceful contagious
mood that David sets. She also gave us insight regarding the interior layout of 8-Twelve; the coowners wanted everything to be customer-friendly.
Teen Survey:
To find out more about what the current generation thinks of 8-Twelve, we conducted a
ten question survey for our peers. After surveying close to fifty people, we were able to draw up
a few conclusions based on the results; the first being 8-Twelve’s most sought after products
which are their drinks: milk tea, smoothies, and tea. Everyone that participated in this survey
enjoys the fact that the owner and employees are so welcoming when customers enter the store,
which in turn makes them feel more relaxed and comfortable. In addition, out of all four of the
milk tea businesses in San Leandro-Quickly, Tea-4, 8-Twelve, and Tapioca Express- 8-Twelve
remains the most popular on the list of top favorites. This is mainly due to their fairly priced
drinks in comparison to Tea-4, which markets a size small drink for nearly $3.50 while 8-Twelve
offers a 32 ounce cup for the same price. This concludes that teenagers around San Leandro
usually go for the cheaper priced drinks, and while 8-Twelve does not have the best drinks in the
area, they are still fairly decent at the most reasonable prices, which is usually what a majority of
teens are looking for.
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Secondary Research
Customer Reviews
1) Yelp.com
Company Information
1) Company’s Facebook
2) Foursquare.com
2) Company’s Website
Research Databases
1) Google Maps
Articles
1) Factors that Define a Brand
Rationale: We began our research process by looking up the store location and where it was
situated in relation to the city to gain a deeper understanding of whether or not location comes
into play with this particular business. We then looked up customer reviews to determine if we
could pinpoint an average customer age range and the most beneficial factors that 8-Twelve has
to offer its customers as well as any complaints or setbacks. Finally, we searched up additional
information about the company that may give them any advantages over other milk tea locations
in the relative area.
B. Process used to conduct the selected research methods
Personal interviews: To increase our understanding about 8-Twelve and their current branding
efforts, we conducted two interviews: one with a co-owner and one with an employee. Prior to
the interview process, we came up with the main topics we wanted to discuss in the interviews as
well as any additional information we would need for this research process. To set up an
appointment for these interviews, we called the number that was given on the Yelp website and
informed them of our purpose in this project. Every group member attended the interviews as we
all took notes and highlighted the most important key factors pertaining to 8-Twelve. The
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questions we came up with for the Co-Owner was much more detailed than the questions
targeted at the employee. Along with questions regarding their promotion efforts and current
progress of the business, we also designed a couple of questions circling around where they
believed they stood with other local milk tea stores.
Teen survey: We believed it was important for teens in the local area to cast their opinions in
regards to what they think of every tea franchise. In order to create a thorough and to-the-point
questionnaire, our group came up with questions that asked for ratings. We first surveyed our
peers about what they think of 8-Twelve and their products, as well as how often they came to
purchase drinks or other merchandise. Then we asked students to rate all four tea businesses
based on quality, prices, and location. Our findings allowed us to gain a better understanding of
the customers’ feelings and emotions towards 8-Twelve and the tea industry. We each conducted
our surveys with our friends and other peers, giving us a wider range of groups to include in our
research study.
IV. FINDINGS AND CONCLUSIONS OF THE STUDY
A. Findings of the research study
In order to determine what actions must be taken to rebrand 8-Twelve, we conducted a research
study to gain additional insight on this business. Listed below you will find the key findings of
our research.
1. Primary research key findings
a. Personal interview with David Kuang, Co-Owner of 8-Twelve:
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i. From the interview with David we were able to gather that he is unsatisfied with the
current logo but had to compromise with his partner, which is how they ended up with their
present logo.
ii. The owners of 8-Twelve do not have a concrete plan for keeping up with changing
trends; they assume that milk tea and smoothies are things that people would always enjoy, and
are hoping that each new generation will help keep their business alive.
iii. They currently do not have any consistent means of promoting their business asides
from word-of-mouth, but David also said that he does not really care to advertise all that much.
b. Interview with Yuki Hu, employee
i. There is nothing Yuki is unsatisfied with as an employee at 8-Twelve. She is good
friends with both the owners and her responsibilities are fairly easy. She gets breaks every now
and then when there aren’t too many customers spilling in, and she loves the carefree
atmosphere.
c. Teen Survey
i. From the survey we conducted, we can conclude that a majority of the teen population
goes to 8-Twelve as their first choice. We asked people to rate 8-Twelve based on quality, prices,
and location and all the responses show that almost everyone thinks they are at least decent.
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2. Secondary Research key findings
a. Customer Reviews
i. A majority of our secondary research consisted of customer reviews on Yelp and
Foursquare due to the fact that 8-Twelve is a newly opened business and there isn’t much
information to be obtained. We found out that the star attraction that brings people to 8-Twelve
is their free toppings bar, and the fact that there is no limit as to how many toppings you can get.
b. Social Media
i. Through the social media site of Facebook, we found that they announce any upcoming
promotions or events happening in the future.
B. Conclusions based on the findings
Primary & Secondary Research Conclusion
The main conclusion that is most prominent based on all our findings is the ever-growing
idea that 8-Twelve remains one of the most popular places in San Leandro to come to for
beverages. Many locals come here when they first think of getting some milk tea, and even some
teenagers from other areas have heard of 8-Twelve. Relaxed, calming, and friendly is what
people first think of when 8-Twelve is mentioned which proves that they already have a positive
brand name. Along with their highly competitive prices in the beverage field, they are becoming
more known throughout the Bay Area. We have come to the conclusion that since Mr. Kuang is
not satisfied with the business logo, then a new logo will be redesigned that satisfies not only the
owners but captivates potential customers.
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However, our research also tells us that this business is not very effective when it comes
to promoting and advertising upcoming events and promotions, as their only social media site is
Facebook. 8-Twelve has the potential of reaching many more probable customers which would
give them better customer relations. Word-of-mouth can only go so far in this particular market,
but with the right plan for a new promotional mix, 8-Twelve can grow to attract so many more
customers. Although social media is becoming a highly recognized and sought out means of
promoting businesses, not many people are aware of 8-Twelve’s media presence which consists
of only their Facebook page.
V. PROPOSED REBRANDING PLAN
A. Objectives and rationale of the proposed rebranding plan
1. Location
Rationale: 8-Twelve’s current location is on the corner of 596 East 14th street. Their location is
much bigger than other local milk tea businesses because it was required by City Hall that they
incorporate a mini market as well, hence the name 8-Twelve Oriental Market. Their location is
very out of the way and nearby any places where people usually tend to go. Additionally, finding
any parking spots is horrifying because they do not have their own parking lot. Being located on
the corner of a main road just adds to the inconvenient location factor because it makes it hard
for licensed customers to navigate around the store to find parking, so people usually have to
park down the street or even a couple blocks away.
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2. Logo
Rationale: 8-Twelve’s most recent prevailing logo is an upright infinity loop meant to look like
the letter eight with the word twelve written over it. David, of the co-owners is not satisfied with
the logo but reluctantly agreed on it because he had to compromise with the other owner. He
believes that the logo is not entirely visible to the public unless you were to look closely at it. He
also stated that the huge number eight is too loud and distracts customers from actually seeing
that there is also the word twelve written across it.
3. Create a Social Media Presence
Rationale: The only social media sites that 8-Twelve participates in is Facebook. Their official
Facebook page statistics shows that very few people know about the page . Their current means
of promoting their brand is by no means efficient in reaching out to potential and existing
customers alike. Social networks are one of the biggest players in advertising a business these
days because much of the promoting is done for free by people who are devoted and loyal
customers. New social media strategies will greatly improve 8-Twelve’s customer relations as
well as effectively bring forth the existence of their business.
B. Proposed Activities and Timelines
This section explains the activities that 8-Twelve will implement in order to gain
advances in promoting their brand as well as a timeline to show the action plan step by step.
1. Re-designing the Logo:
With every brand comes a logo, and logos are the main visual component of a company’s
brand identity. 8-Twelve’s current logo gives the company’s face an immature look and is way
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too “loud” and distracting to make a lasting impression. We plan to remake the design into
something more sophisticated that will give off a sense of meaning in relation to the purpose of
the business. David Kuang claims that their current design is much too distracting and not very
visual to customers, so in order to achieve our goal of creating a well-designed logo, 8-Twelve’s
new graphical representation must have clean-looking elements without inconsistent elements.
2. Creating a Social Media Presence
8-Twelve participates in many local high school fundraisers. Social media marketing is
the most important method for online marketing for small businesses. We came up with a
promotional plan for 8-Twelve to increase the amount of “Likes” and “Shares” on Facebook.
Once the process of redesigning their logo has been completed, they can begin implementing
their new promotional plan. We came up with a month-long plan that will allow customers to
“Like” and “Share” their Facebook page. When a certain amount of “Likes” and “Shares” have
been reached, 8-Twelve will release a new deal for their drinks. A new goal must be attained
every week for the span of that month. In addition, 8-Twelve will start a Twitter account to
update their followers on upcoming promotions and events. Lastly, they will also create an
Instagram account to display any new drinks or food items.
3. Relocating
There are no parking lots near 8-Twelve and there are rarely any available parking spaces. This
can turn away any potential customers simply because they have nowhere to park their car. Location is a
critical factor in the success of a business. If it is not easily accessible by the public, then it is very much
in danger of going bankrupt. We will start off the relocating plan of action by discussing possible
locations with the owners. Searching for a well-populated area near shopping centers or downtown area’s
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would be most suitable for a small business like 8-Twelve. There would be a plentiful amount of parking
spaces, and being near other restaurants would attract more potential customers.
Timeline
Month
Logo
Location
Advertisement
January
Propose change of
location
Get owners approval.
Update current website and
include menu, prices and
yearly promotion(s).
February
Begin working with
real estate agent.
Work with personal
bank to reassure loan.
March
Begin looking
Create Twitter and Instagram
for new locations near accounts. Hone Facebook
a local shopping
page.
center.
April
Meet owners of 8-Twelve
to discuss logo change and
potential renovated
designs.
Continue search for
new location.
Decide the new
location.
May
Meet with graphic
designer to consider new
design.
Relocate 8-Twelve
June
Finalize new logo design.
Adapt and refurnish
the new location.
Spread word of grand
opening through social
media.
July
Order stamp cards and
cups with the new logo.
Finalize any
necessary changes
Plan for opening.
Promote 8-Twelve’s opening
and “Drinks for $2.00” for
grand opening.
Big opening 8/12
“Drinks for $2.00”
August
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Continue promotion through
social media.
“Share” Facebook page to
unlock new upcoming
discounts/deals.
VI. PROPOSED BUDGET
A. Costs associated with proposed rebranding strategies
1. Redesigning the Logo
In order to make the desired changes to their logo, it is going to cost the owners $320
because the cost to work with a graphic designer is $40 per hour for 8 hours.
COST: $320
2. Creating a Social Media Presence
There are no costs associated with creating Instagram and Twitter accounts.Creating a
polished and refined Facebook page requires a professional webmaster seeing as the owners
claimed to not have much knowledge of how Facebook works. We propose that it will take at
most two hours to update all necessary information and upload all the display pictures. It will
cost $15 an hour to hire a professional, so the total cost will be $30.
COST: $30
3. Relocating
Moving to a new location will be the most costly part of this plan. Since they do not need
to incorporate a market in their new location, it will cost approximately $420,000 for an average
sized store, and we estimate about $50,000 to refurnish the place.
COST: $470,000
Additional Costs
New Stamp Cards: 200 for $60
New Cups: 500 for $85
______________________________TOTAL: $470,495_______________________________
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B. Proposed Metrics to Measure Return on Investment
1. New Logo
In order to measure if the new logo design was worth the investment, we would look at
the influx of customers at the new location compared to 8-Twelve’s previous location. If the new
graphical representation of 8-Twelve proves to be a success in capturing the attention of
onlookers, then there will be an increase in sales.
2. Established Social Media Presence
After claiming official 8-Twelve social media accounts, the return on investment can be
measured by the amount of “Likes” and “Shares” 8-Twelve has gained since beginning of the
rebranding plan. The 8-Twelve Facebook page should gain an additional two thousand “Likes”
and at least 500 “Shares”. The success of creating a Twitter and Instagram account can be
measured by the amount of followers they have gained.
3. New Location
Measuring the return on investment with the new location is fairly easy. An increase in
sales and products sold will give solid proof as to whether or not a new location was worth the
investment.
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VII. BIBLIOGRAPHY
"8-twelve Oriental Market." 8twelve Oriental Market. WordPress, n.d. Web. 08 Jan. 2014.
Yelp Inc. "8-Twelve Oriental Market." Yelp.com. Yelp Inc., 11 Mar. 2013. Web. 09 Jan. 2014.
<http://m.yelp.com/biz/8-twelve-oriental-market-san-leandro>.
"Yelp.com." Milk Tea San Leandro, CA. Yelp Inc., n.d. Web. 8 Jan. 2014.
<http://m.yelp.com/search?find_desc=Milk Tea&find_loc=San Leandro, CA>.
"8-Twelve Oriental Market." Restaurant in San Leandro, CA. AmericanTowns.com, n.d. Web.
09 Jan. 2014. <http://www.whatsgoodhere.com/p/8twelve-oriental-market-san-leandro1855185>.
Patch Staff. "Sprouts & Shutters: New Asian Market Opens At Dutton & East 14th Street." San
Leandro Patch. Patch, 12 Mar. 2013. Web. 09 Jan. 2014.
<http://sanleandro.patch.com/groups/business-news/p/sprouts-shutters-new-asian-market-opensat-dutton-easa86221958b>.
LoopNet, Inc. "San Leandro Commercial Real Estate for Sale and Lease- SAn Leandro, CA."
LoopNet.com. N.p., n.d. Web. 8 Mar. 2014. <http://www.loopnet.com/California/San-LeandroCommercial-Real-Estate/>.
"Cost of Newspaper Advertising in San Leandro, CA." Resources for Entrepreneurs at Gaebler
Ventures RSS. Gaebler Ventures, n.d. Web. 09 Jan. 2014. <http://www.gaebler.com/Cost-ofNewspaper-Advertising-In-San Leandro---CA>.
"Flyer and Printing Design." VIstaprint.com. Vistaprint, n.d. Web. 8 Mar. 2014.
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