AMITY BUSINESS SCHOOL
Marketing Research On
Coffee Bars in India
Submitted to:
Submitted by:
Prof. S K Laroiya
Rajeev Chaturvedi F-36 Mridul Sharma F-41 Aalok Awasthi F-42 Aashish Bhagat F-45 Alok Tripathi F-52
MBA class of 2012 Dated: 07th March 2011
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Letter of Authorization
To, Group 12 -section F Rajeev Chaturvedi, Mridul Sharma, Aashish Bhagat, Aalok Awasthi, Alok Tripathi
I, hereby authorize the above students to conduct a research on “ Effectiveness of
Coffee Bars in India ” based on the disclaimer that the research information collected by students shall be strictly for the purpose of A mity Business School’s subject project of “Marketing Research” and no information will be further
disclosed to any other person.
Sincerely
(Dr. S.K. Laroiya) Professor Amity Business School Amity University Noida
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Letter of Transmittal
Dr. S.K. Laroiya Professor Amity Business School Amity University Noida.
March 07, 2011 Dear Sir,
We, the students of group 12 of section F (MBA Class of 2012) have completed the project on March 07, 2011, which has been authorized by you. We are thankful to you for providing the assistance and guidance at every step of the research and compilation of the report. The complete methodology is described in the report. Standard marketing research practices were used in the conduct of the study, and we believe the results to be valid and reliable within the constraints as defined in the report. We consider that you will find the results to be interesting and certainly of use to you in making your recommendations for coffee bars.
Sincerely Group 12 -section F Rajeev Chaturvedi Mridul Sharma Aashish Bhagat Aalok Awasthi Alok Tripathi
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ACKNOWLEDGEMENT
First and foremost we would like to express deep gratitude to and our heartfelt thanks to our respected mentor Prof. S.K. Laroiya sir for his vital guidance and unending support. His constant feedbacks on every step made the project a great learning experience.
We would also like to take the opportunity to thank our batch mates and friends who enriched us with their valuable inputs.
Also, we thank all those respondents for sparing their valuable time and filling up our questionnaire which ultimately formed the base of our project. The untiring support and valuable suggestions of all these people has led to the project completion in time and with efficiency.
Group 12 Section F
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EXECUTIVE SUMMARY:-
In today’s world Coffee has become an indispensible part of our life.
Coffee Bars in India has recently increase their customers. Due to the economical rates and skimming of the lots of brands available in the scenario, it is nearly present in all the sections of the society. Coffee bars industry provides immense potential for the growth and expansion due to immense increase in the customer base with the passage of time. Hence to make the most out of the growing coffee bars customer base, it is important for the coffee bars industries to understand the consumer behavior by understand the motivating factors influencing the buying decision of the consumers. Our project deals with understanding the motivational factors underlying the buying decision in the coffee bars in India. In India due to diverse attitudes and preferences, a number of motivational factors influence the purchase decisions. In our project we have taken a sample of respondents from almost all locations of NCR.
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TABLE OF CONTENTS Page Chapter 1 INTRODUCTION……………………………………………………………………....07
CAFÉ COFFEE DAY……………………………………………………………......09
COSTA COFFEE…………………………………………………………………….10
BARISTA…….……………………………………………………………………………………11
Chapter 2 PROJECT DETAILS AND OBJECTIVES ……………………………………....12 Chapter 3 RESEARCH METHODOLOGY…………………………………………………….14
Chapter 4 ANALYSIS AND INTERPRETATION…………………………………………..19
Chapter 5 LIMITATIONS OF THE RESEARCH……………………………………………55
Chapter 6 CONCLUSIONS ………………………………………………………………………..56 LEARNINGS...........................................................................................................57 BIBLIOGRAPHY...................................................................................................59 ANNEXURE……………………………………………………………………………..60
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Chapter 1 INTRODUCTION
Coffee Bars IN INDIA Coffee bars are the popular hangout destinations among the masses all over the Delhi NCR. People belonging to all age groups, particularly young girls and guys, consider the coffee bar as a great place to make and meet friends and enjoy a cup of recharging drinks.
In recent years, coffee bars have popped up in every location, and have become a profitable business venture. Café coffee day, Costa coffee and Barista (LAVAZZA) are some of the most frequently visited coffee bars in India. The menus of the coffee bars include an assorted selection of coffees, teas, and cold drinks. But the menu focuses mainly on a wide range of cool and hot exotic coffees. Among the exotic selection of coffees available in coffee bars: lattes, cappuccinos, and espresso. Other than the exotic coffees, the menus of coffee bars also include an array of fresh juice and soft drinks. Some coffee bars even serve alcoholic beverages like beer, whisky, rum and wine. 7
Coffee bars also serve delicacies for breakfast, lunch, and sometimes even dinner. The menu mainly consists of freshly prepared soups, hot and cold sandwiches, salads, and wraps. All the coffee bars have a separate menu for children that primarily encompass children’s favorite snacks and drinks.
Other than eating and drinking, coffee bars are also perfect places to enjoy music, socializing and partying. Music gives the atmosphere a relaxed feel. Today, music has become a vital component in most of the coffee bars. Nowadays most coffee bars have facilities to accommodate business meetings, parties, and celebrations. Some coffee bars even have separate area for children and facilities for Internet browsing.
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THE COMPANIES OVERVIEW:1. CAFÉ COFFEE DAY:-
Café Coffee Day (CCD) pioneered the café concept in India in 1996 by opening its first café at Brigade Road in Bangalore. Today, more than a decade later, Café Coffee Day is the largest organized retail café chain in India with cafes functioning in every nook and corner of the country. Drawing inspiration from this overwhelming success, Café Coffee Day today has cafes in
Vienna, Austria and Karachi. What‟s more, new cafes are planned across Middle East, Eastern Europe, Eurasia, Egypt and South East Asia in the near future.
Their Divisions
Coffee Day Fresh „n Ground. Coffee Day Xpress. Coffee Day Take Away Coffee Day Exports Coffee Day Perfect The company is founded in 1996 headquarters are at banglore. It has 1016 number of location with a revenue of 45 million US dollor. The company has 5000 employees strength.
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2. COSTA COFFEE:-
Costa Coffee is a coffee house company based in the United Kingdom founded in 1971 by Italian brothers Sergio and Bruno
Costa,
as
a
wholesale
operation
supplying
roasted coffee to caterers and specialist Italian coffee shops. Since
1995
it
has
been
a
subsidiary
of,
the Whitbread company, since when the company has grown to over 1700 stores in the UK and abroad. The company was founded in 1971. The company has revenue of approx 360 million US
dollor. The company has 25000
employees strength.
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3. BARISTA:-
Barista
Lavazza is
a
chain
of espresso bars
in India.
Headquartered in Noida, Barista currently has espresso bars across India, Sri Lanka, Bangladesh and the Middle East. It was founded in 1997 by Amit Judge and was part of his group of companies. He sold part of the equity to first Tata Coffee. Then after he and Tata Coffee fell apart, Sterling then bought over the firm. In 2007, Sterling divested all their stake to Lavazza. Barista Lavazza is currently owned by Lavazza, Italy’s largest coff ee company. Coffee is supplied by the Indian roaster Fresh and Honest, headquartered in Chennai. The latter is also owned by Lavazza. As of 2009, the chain has 200 stores in India, with an estimated annual revenue of Rs 200 crores.
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Chapter 2 PROJECT DETAILS This project was designed keeping in mind the prime criteria‟s as to the reasons of how and why a market condition is actually analyzed. Analysis could not be enumerated on the basis of anticipations, but real statistics. Statistics is based on product acceptance in any market and that too on the basis of certain segmentations. A product launched without a thorough market research is sure to face a disaster. This project would actually help in ascertaining certain facts which would help in understanding the actual
reasons of the product‟s upward or downward sales graph. The product which sees it‟s consumer as a part of it‟s origin dictates consumer behavior, and hence market research of the given product would even reveal as to how a developed strategy would also yield avenues of a better sales graph. This project speaks of the service provided and accepted service comfort. It would also talk about the acclimatization of the services with the consumer.
OBJECTIVES
Our primary Objective is to research factors influencing the customers while choosing different coffee bars in India. We primary focus on the buying habits of the customers and selecting the drinks and other associated items with drinks in coffee bars. We analyze the demographics, different age groups and their purchasing decisions according to their taste.
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To find out the preference of Alcoholic beverages among the customers in coffee bars.
To find out the most preferred Coffee Bar in the industry.
To find the key factors for denial & acceptance of Coffee Bars services.
To find the most effective personality for advertising Coffee Bars.
To find preference among consumers of coffee bars over regular bars/pubs.
To find out consumer attitude towards the various factors of competitive brands.
To find the relativeness of footfall with expenditure.
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Chapter 3 RESEARCH METHODOLOGY INTRODUCTION This chapter aims at understanding the research methodology used in this marketing research project, establishing a framework of evaluation of primary and secondary research. The techniques and concepts used during primary research in order to arrive at the findings have been explained which are also dealt with and lead to a logical deduction towards the analysis and results. The methodology adopted to accomplish this project was in accordance with the topic assigned. The study was based on data collected mainly from primary as well as secondary sources. Descriptive research methodology was adopted for the purpose of study.
RESEARCH PROBLEM The main intention of the project was to understand factual benefits and acceptance of various types of Liquor‟s in Coffee Shops (which is now called as Coffee Bars).
It was an attempt to put forth the fact that an
acceptance of such kind of service actually can change life. The objective also speaks about preferably of alcohol in coffee bars, but also its accessibility modes & availability among all sections of people . RESEARCH DESIGN
The researchers propose to first conduct an intensive secondary research to understand the full impact and implication of the industry, to critically
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review the industry norms and reports, on which certain issues shall be selected, which the researchers feel remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory research where focused group shall screen through. This stage shall help the researchers to restrict and select only the important question and issue, which inhabit growth and segmentation in the industry. These set of questions are then proposed to be studied under a descriptive research setting finally leading to formation of hypothesis and testing the same under causal research.
TYPES OF RESEARCH On the basis of fundamental objectives of the research, marketing research projects are classified into two branches:
Exploratory Research
Conclusive Research
Exploratory Research: Exploratory research is conducted when one is seeking insights into the general nature of a situation, the possible decision alternatives, and the relevant variables that need to be considered. While conducting our study we used exploratory research, which was flexible and was aimed at identifying all the attributes a customer might look at the ambience & Quality for deciding to dine out in a coffee bar. We have taken a review of the thoughts of the people about ambience and screened some issues which we as researchers felt needed more clarification or study. These specific topics were then taken to a focus group. The focus groups were indented to reveal some of the issues which can influence consumer behavior about the product when he is seeing the advertisement. 15
DESCRIPTIVE RESEARCH. We used descriptive research technique in our project.
SAMPLING TYPE The type of sampling used was non probabilistic convenience sampling.
SAMPLE SIZE The sample size used for the analysis is 210
DATA USED FOR ANALYSIS
Primary Data : Collected by the means of questionnaires Secondary Data : Already existing data is called secondary data. We collected them by following method –
Internet
Books
Newspapers
RESEARCH INSTRUMENT Structured questionnaires comprising of close ended questions were used as research instruments. The method adopted for developing the above mentioned questionnaires followed the following sequential order:
1. Determining the objective of the project and specific data to be sought. 2. Determining the process of interviewing. 3. Scrutinizing the question content. 4. Setting the response format.
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5. Setting the wording of the questions. 6. Setting the questionnaire structure. 7. Pre-testing, revising, redesigning and final draft.
QUESTIONNAIRES We did a descriptive analysis by constructing a well structured questionnaire and collected the primary data. We personally went to the respondents and requested them to provide us with the details for filling the questionnaire.
FEATURES OF THE QUESTIONNAIRE
Well structured
Closed ended questions
Dichotomous, branching questions also used
Likert scaling used in a few questions
PRE-TESTING THE QUESTIONNAIRE Before implementing the questionnaires in the field, a pilot study was conducted to avoid any ambiguous questions and to see the effectiveness of the questionnaires. A pilot survey with 7 consumers was conducted. After Pre-Testing it was found that, few questions were not apprehend able by the respondents; these were accordingly redesigned and revised so as to make them more understandable. Finally the questionnaires were printed and used in collecting responses for the survey.
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SOFTWARE USED FOR DATA ANALYSIS
SPSS 18.0
Microsft Excel
Microsoft Word
Microsoft Powerpoint
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Chapter 4
ANALYSIS Question :- How frequently you consume Tea/Coffee ? Objective : - To find the average time spent by people on watching tv : Frequently you consume Tea/Coffee (approximately)? Cumulative
Valid
Frequency
Percent
Valid Percent
Percent
On a daily basis
144
68.6
68.6
68.6
Once a week
41
19.5
19.5
88.1
Once a month
19
9.0
9.0
97.1
Others
6
2.9
2.9
100.0
Total
210
100.0
100.0
Interpretation:- From the Analysis we have got that Maximum people (52.86%) go to Coffee Shop once in a month and then 23.33 % people go to
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coffee shop once in two months or rarely. While most importantly 11.09% people visit twice in a month, 9.08% go once in a week & 3% go twice a week only (collectively these three adds up to 23%). So it can put up this way that all that these 23% are the trendsetters for the industry. Question :- What time of the Day people normally visit coffee bars? Objective:- Here our objective was just to identify the maximum turnaround time at a given coffee shop. Time of the day Cumulative Frequency Valid
Percent
Valid Percent
Percent
Morning
11
5.2
5.2
5.2
Afternoon
69
32.9
32.9
38.1
Evening
90
42.9
42.9
81.0
Night
40
19.0
19.0
100.0
Total
210
100.0
100.0
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Interpretation:- As per the responses we got the 42.9% people visit in the evening while 32.9% visit in the afternoon. So 75% of the business is done between 12pm to 8pm, which are peak hours for the business and operations must be handled effectively during these hours.
Question :- Whom do you consume in coffee shop? Objective :- In this question we have tried to analyze which is the most
preferred drink in the café‟s
Interpretation: Here we have got to know most people prefer sipping up Tea/Coffee at the coffee bar.
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Question:- How comfortable are they with alcohol served in coffee shop? Objective:- Analysis:-
Interpretation: After Analysis We come to know that 45.71 % of people are comfortable with alcohol now being served in coffee shops while 54.29% people said that they did not like the idea of alcohol being served in coffee shops.
Question:- What brings you to coffee bars? . Objective:- We just wanted to see what are the prime reasons for the footfall in coffee bars therefore we have taken responses for this question.
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Analysis
Interpretation:- We come to know that Maximum people come to coffee bars for Food (35.4%) while 32.5% come for Pleasure whereas 25.4% come for Client Meeting. This helped us in knowing where company should lay its focus on to increase footfall. For eg: Serving delicious authentic food, decent place to sit, hygienic conditions etc.
Question:- What else do you consume along with your beverage? Objective:- Here we tried to analyze which add-ons people most prefer to have with their drink.
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Analysis:-
Interpretation :- As far as most preferred add-ons in coffee bars is concerned consumers prefer starters the most with 37.14%. Then comes the mini meals which accounts for 27.14% while bottled water is 18.10% and Deserts for 17.62 %. The company needs to regularly innovate or restructure its product line in terms of food, deserts and ot her eatables as it can‟t do much with bottled water or canned food.
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Question : - Believe that brand‟s sales are affected by advertisement, celebrity endorsements, logos, product qualities, packaging designs & others? Objective :- To know that any medium of advertisement has any effect on buying behavior of the consumer.
Analysis:Cumulative Frequency Valid
Percent
Valid Percent
Percent
Yes
133
63.3
63.3
63.3
No
77
36.7
36.7
100.0
210
100.0
100.0
Total
Interpretations: We can say that the highly advertised brands and services possess more advantage in terms of awareness, visibility and likeability, status symbol etc.
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As in the research 133 persons (out of 210samples) have rated positive impact on their buying behavior.
Question : - Rate the coffee shops on a scale of (1-5)under the factors of Ambience, Price, Quality. Objective : - To know that which coffee shop has the highest branding power. Analysis:Ambience
Pricing
Quality
Barista
3.09
3.15
3.13
Café Coffee Day
2.51
3.09
3.53
Costa Coffee
2.73
3.1
3.26
26
Interpretation:- 1. From the above Analysis it is interpreted that the
„Ambience‟ of Café Coffee Day was highly encouraging than at the second the „Ambience‟ of Costa Coffee was encouraging and the least is Barista.
2. In terms of „Price‟of Barista is comparatively higher than comes Costa Coffee & at last Café Coffee Day.
3. At last „Quality‟ of Café Coffee Day is comparatively given more preference than Costa Coffee and then Barista
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So we can infer that Café Coffee Day success lies in the fact that they provide better ambience, better quality at comparatively lesser price which is the key to their success.
QUESTION : AGE GROUP: Objective: Here we just wanted to know that which age group of people have answered our questionnaire.
ANALYSIS :
Age Group
28
Cumulative Frequency Valid
Student 18-25
Percent
Valid Percent
Percent
117
55.7
55.7
55.7
Professional 26-35
44
21.0
21.0
76.7
Parent 36-45
33
15.7
15.7
92.4
Aged 45 or more
16
7.6
7.6
100.0
210
100.0
100.0
Total
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CROSS TABULATION ANALYSIS:
Objective:-Which age groups mostly visit Coffee Shops? Analysis:Prefer visiting coffee shops at ti mes * Age Group Crosstabulation Count Age Group 18-25
26-35
36-45
45 or more
Total
Prefer visiting coffee shops
Yes
93
37
30
13
173
at times
No
24
7
3
3
37
117
44
33
16
210
Total
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Interpretation: According to our Analysis students or college going people of age group (18-25 years) mostly visit coffee shops next followed by working professional of age group (25-36).
Objective:- Which age group consume what in coffee bar ? It will be desired to focus on the needs of different age group at different locations? Analysis:Age Group * Consume in coffee shop Crosstabulation Count Consume in coffee shop Soft
Tea/Coffee Age Group Student 18-25
Total
Alcoholic
Drinks/other
Drinks
beverages
Total
85
16
16
117
Professional 26-35
32
8
4
44
Parent 36-45
24
5
4
33
Aged 45 or more
15
1
0
16
156
30
24
210
31
Interpretation:- Here we come to know that of all the 4 age groups
1. Students normally consumes more Tea/Coffee & equal preference is given to Alcoholic Drinks and Softdrinks.
2. Working Professional consumes Tea/Coffee more than alcoholic beverage followed by least consumption of softdrinks.
3. Parent and Aged people consume mostly Tea/Coffee.
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Objective:-What brings different age group to coffee bars and at what time of the day? Analysis:Age Group * Brings them to Coffee Bars * Time of the day Crosstabulation Count Time of the day
Brings them to Coffee Bars Food
Morning
Age Group
Age Group
Age Group
Age Group
Total
Total
3
1
6
Professional 26-35
0
1
1
2
Parent 36-45
1
2
0
3
3
6
2
11
16
13
11
2
42
Professional 26-35
5
4
6
2
17
Parent 36-45
3
1
2
0
6
Aged 45 or more
0
2
0
2
4
24
20
19
6
69
19
11
17
3
50
Professional 26-35
8
2
7
0
17
Parent 36-45
8
3
2
2
15
Aged 45 or more
3
2
2
0
7
38
18
28
5
89
Student 18-25
6
2
8
3
19
Professional 26-35
1
3
3
0
7
Parent 36-45
1
2
6
0
9
Aged 45 or more
1
2
2
0
5
9
9
19
3
40
Student 18-25
Student 18-25
Total Night
Dating
2
Total Evening
Pleasure
Student 18-25
Total Afternoon
Client Meeting
33
34
35
Interpretation:- From the analysis we come to know that every age group Student, Professional, Parent & aged people come to coffee bars for varied reasons which keeps changing during the time of the day. .
OBJECTIVE : To find out the expenditure pattern of people on different beverages available at coffee bars Spend at Coffee Bars * Drink Beer Crosstabulation Drink Beer Yes Spend at Coffee Bars
0-500
Count % within Drink Beer
500-1000
Count % within Drink Beer
1000-1500
Count % within Drink Beer
1500 or more
Count % within Drink Beer
Total
Count % within Drink Beer
No
Total
56
55
111
51.9%
53.9%
52.9%
39
33
72
36.1%
32.4%
34.3%
10
10
20
9.3%
9.8%
9.5%
3
4
7
2.8%
3.9%
3.3%
108
102
210
100.0%
100.0%
100.0%
36
Spend at Coffee Bars * Drink Whisk y/Scotch/Vodka Crosstabulation Drink Whisky/Scotch/Vodka Yes Spend at Coffee Bars
0-500
Count % within Drink
No 52
59
50.0%
55.7%
35
37
33.7%
34.9%
12
8
11.5%
7.5%
5
2
4.8%
1.9%
104
106
100.0%
100.0%
Whisky/Scotch/Vodka 500-1000
Count % within Drink Whisky/Scotch/Vodka
1000-1500
Count % within Drink Whisky/Scotch/Vodka
1500 or more
Count % within Drink Whisky/Scotch/Vodka
Total
Count % within Drink Whisky/Scotch/Vodka
37
Spend at Coffee Bars * Drink Whisk y/Scotch/Vodka Crosstabulation Total Spend at Coffee Bars
0-500
Count % within Drink
111 52.9%
Whisky/Scotch/Vodka 500-1000
Count % within Drink
72 34.3%
Whisky/Scotch/Vodka 1000-1500
Count % within Drink
20 9.5%
Whisky/Scotch/Vodka 1500 or more
Count % within Drink
7 3.3%
Whisky/Scotch/Vodka Total
Count % within Drink
210 100.0%
Whisky/Scotch/Vodka
38
Spend at Coffee Bars * Drink Hot Beverages like Coffee,Tea Crosstabulation Drink Hot Beverages like Coffee,Tea 1 Spend at Coffee Bars
0-500
Count % within Drink Hot
2 108
3
52.7%
60.0%
71
1
34.6%
20.0%
20
0
9.8%
.0%
6
1
2.9%
20.0%
205
5
100.0%
100.0%
Beverages like Coffee,Tea 500-1000
Count % within Drink Hot Beverages like Coffee,Tea
1000-1500
Count % within Drink Hot Beverages like Coffee,Tea
1500 or more
Count % within Drink Hot Beverages like Coffee,Tea
Total
Count % within Drink Hot Beverages like Coffee,Tea
Spend at Coffee Bars * Drink Hot Beverages like Coffee,Tea Crosstabulation Total Spend at Coffee Bars
0-500
Count % within Drink Hot
111 52.9%
Beverages like Coffee,Tea 500-1000
Count % within Drink Hot
72 34.3%
Beverages like Coffee,Tea 1000-1500
Count % within Drink Hot
20 9.5%
Beverages like Coffee,Tea 1500 or more
Count % within Drink Hot
7 3.3%
Beverages like Coffee,Tea Total
Count % within Drink Hot
210 100.0%
Beverages like Coffee,Tea
39
Spend at Coffee Bars * Drink Cold Beverages like Cold Coffee, Shakes Crosstabulation Drink Cold Beverages like Cold Coffee, Shakes 1 Spend at Coffee Bars
0-500
Count % within Drink Cold
2 107
4
52.2%
80.0%
71
1
34.6%
20.0%
20
0
9.8%
.0%
7
0
Beverages like Cold Coffee, Shakes 500-1000
Count % within Drink Cold Beverages like Cold Coffee, Shakes
1000-1500
Count % within Drink Cold Beverages like Cold Coffee, Shakes
1500 or more
Count
40
% within Drink Cold
3.4%
.0%
205
5
100.0%
100.0%
Beverages like Cold Coffee, Shakes Total
Count % within Drink Cold Beverages like Cold Coffee, Shakes
Spend at Coffee Bars * Drink Cold Beverages like Cold Coffee, Shakes Crosstabulation Total Spend at Coffee Bars
0-500
Count % within Drink Cold
111 52.9%
Beverages like Cold Coffee, Shakes 500-1000
Count % within Drink Cold
72 34.3%
Beverages like Cold Coffee, Shakes 1000-1500
Count % within Drink Cold
20 9.5%
Beverages like Cold Coffee, Shakes 1500 or more
Count % within Drink Cold
7 3.3%
Beverages like Cold Coffee, Shakes Total
Count % within Drink Cold
210 100.0%
Beverages like Cold Coffee, Shakes
41
Spend at Coffee Bars * Drink Other Refreshments li ke softdrinks, canned juices Crosstabulation Drink Other Refreshments like softdrinks, canned juices Yes Spend at Coffee Bars
0-500
Count % within Drink Other
No 34
77
54.0%
52.4%
22
50
34.9%
34.0%
4
16
6.3%
10.9%
Refreshments like softdrinks, canned juices 500-1000
Count % within Drink Other Refreshments like softdrinks, canned juices
1000-1500
Count % within Drink Other Refreshments like softdrinks, canned juices
42
1500 or more
Count
3
4
4.8%
2.7%
63
147
100.0%
100.0%
% within Drink Other Refreshments like softdrinks, canned juices Total
Count % within Drink Other Refreshments like softdrinks, canned juices
Spend at Coffee Bars * Drink Other Refreshments li ke softdrinks, canned juices Crosstabulation Total Spend at Coffee Bars
0-500
Count % within Drink Other
111 52.9%
Refreshments like softdrinks, canned juices 500-1000
Count % within Drink Other
72 34.3%
Refreshments like softdrinks, canned juices 1000-1500
Count % within Drink Other
20 9.5%
Refreshments like softdrinks, canned juices 1500 or more
Count % within Drink Other
7 3.3%
Refreshments like softdrinks, canned juices Total
Count % within Drink Other
210 100.0%
Refreshments like softdrinks, canned juices
43
OBJECTIVE:- To analyse the difference in the expenditure by consumers at coffee bars & regular bars? Analysis:-
44
Interpretation:Here we come to know that at both the coffee bars and regular bars the expenditure pattern of the consumers after the alcohol is permitted in the coffee shops. 45
Objective:-To determine frequency of visit and the expenditure relation in coffee bars Analysis:Frequency of visit before the introduction of alcohol (monthly) * Spend at Coffee Bars Crosstabulation Spend at Coffee Bars 0-500 Frequency of visit before the
0-1
Count
introduction of alcohol
% within Frequency of visit
(monthly)
before the introduction of
500-1000
1000-1500
44
10
5
72.1%
16.4%
8.2%
39.6%
13.9%
25.0%
34
38
8
42.0%
46.9%
9.9%
30.6%
52.8%
40.0%
24
14
4
52.2%
30.4%
8.7%
21.6%
19.4%
20.0%
9
10
3
40.9%
45.5%
13.6%
8.1%
13.9%
15.0%
111
72
20
52.9%
34.3%
9.5%
100.0%
100.0%
100.0%
alcohol (monthly) % within Spend at Coffee Bars 2-3
Count % within Frequency of visit before the introduction of alcohol (monthly) % within Spend at Coffee Bars
4-5
Count % within Frequency of visit before the introduction of alcohol (monthly) % within Spend at Coffee Bars
6 or more
Count % within Frequency of visit before the introduction of alcohol (monthly) % within Spend at Coffee Bars
Total
Count % within Frequency of visit before the introduction of alcohol (monthly) % within Spend at Coffee Bars
46
Frequency of visit before the introduction of alcohol (monthly) * Spend at Coffee Bars Crosstabulation Spend at Coffee Bars 1500 or more Frequency of visit before the
0-1
Count
introduction of alcohol
% within Frequency of visit
(monthly)
before the introduction of
Total 2
61
3.3%
100.0%
28.6%
29.0%
1
81
1.2%
100.0%
14.3%
38.6%
4
46
8.7%
100.0%
57.1%
21.9%
0
22
.0%
100.0%
.0%
10.5%
7
210
3.3%
100.0%
100.0%
100.0%
alcohol (monthly) % within Spend at Coffee Bars 2-3
Count % within Frequency of visit before the introduction of alcohol (monthly) % within Spend at Coffee Bars
4-5
Count % within Frequency of visit before the introduction of alcohol (monthly) % within Spend at Coffee Bars
6 or more
Count % within Frequency of visit before the introduction of alcohol (monthly) % within Spend at Coffee Bars
Total
Count % within Frequency of visit before the introduction of alcohol (monthly) % within Spend at Coffee Bars
47
Frequency of visit after the introduction of alcohol (monthly) * Spend at Coffee Bars Crosstabulation Spend at Coffee Bars 0-500 Frequency of visit after the
0-1
Count
introduction of alcohol
% within Frequency of visit
(monthly)
after the introduction of
500-1000
1000-1500
47
8
5
75.8%
12.9%
8.1%
42.3%
11.1%
25.0%
34
32
7
45.3%
42.7%
9.3%
30.6%
44.4%
35.0%
24
25
4
45.3%
47.2%
7.5%
21.6%
34.7%
20.0%
alcohol (monthly) % within Spend at Coffee Bars 2-3
Count % within Frequency of visit after the introduction of alcohol (monthly) % within Spend at Coffee Bars
4-5
Count % within Frequency of visit after the introduction of alcohol (monthly) % within Spend at Coffee Bars
48
6 or more
Count % within Frequency of visit
6
7
4
30.0%
35.0%
20.0%
5.4%
9.7%
20.0%
111
72
20
52.9%
34.3%
9.5%
100.0%
100.0%
100.0%
after the introduction of alcohol (monthly) % within Spend at Coffee Bars Total
Count % within Frequency of visit after the introduction of alcohol (monthly) % within Spend at Coffee Bars
Frequency of visit after the introduction of alcohol (monthly) * Spend a t Coffee Bars Crosstabulation Spend at Coffee Bars 1500 or more Frequency of visit after the
0-1
Count
introduction of alcohol
% within Frequency of visit
(monthly)
after the introduction of
Total 2
62
3.2%
100.0%
28.6%
29.5%
2
75
2.7%
100.0%
28.6%
35.7%
0
53
.0%
100.0%
.0%
25.2%
alcohol (monthly) % within Spend at Coffee Bars 2-3
Count % within Frequency of visit after the introduction of alcohol (monthly) % within Spend at Coffee Bars
4-5
Count % within Frequency of visit after the introduction of alcohol (monthly) % within Spend at Coffee Bars
49
6 or more
Count % within Frequency of visit
3
20
15.0%
100.0%
42.9%
9.5%
7
210
3.3%
100.0%
100.0%
100.0%
after the introduction of alcohol (monthly) % within Spend at Coffee Bars Total
Count % within Frequency of visit after the introduction of alcohol (monthly) % within Spend at Coffee Bars
50
INDEPENDENT T TEST
Objective:- Do you think people prefer going to coffee bars over normal bars or pubs? Prefer Coffee Bars over Pubs Cumulative
Valid
Frequency
Percent
Valid Percent
Percent
Strongly Agree
16
7.6
7.6
7.6
Somewhat Agree
28
13.3
13.3
21.0
Neutral
23
11.0
11.0
31.9
Somewhat Disagree
67
31.9
31.9
63.8
Strongly Disagree
76
36.2
36.2
100.0
Total
210
100.0
100.0
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H0: There is no preference among Coffee Bars & Regular Pubs H1: There is preference among Coffee Bars & Pubs H0=H1 Null Hypothesis; H0/=H1 Alternate Hypothesis One-Sample Statistics N Prefer Coffee Bars over Pubs
Mean 210
Std. Deviation
3.76
1.280
Std. Error Mean .088
One-Sample Test Test Value = 3 95% Confidence Interval of the Difference t Prefer Coffee Bars over Pubs
df 8.570
Sig. (2-tailed) 209
.000
Mean Difference .757
Lower
Upper .58
.93
Inference: Using the Likert Scale, the result shows with the one sample T test the consumer prefer Regular Bars or Pubs over Coffee Bars with mean difference (0.757). We reject Null Hypothesis and accept Alternate Hypothesis i.e. H0/=H1.
52
CORRELATION
Objective: To find any significant relation between frequency of visit before & after the introduction of alcohol and Expenditure in coffee bar.
Correlations Frequency of
Frequency of
visit before the
visit after the
introduction of
introduction of
alcohol
alcohol
Spend at
(monthly)
(monthly)
Bar/Club **
.127
.000
.066
210
210
210
**
1
Frequency of visit before the
Pearson Correlation
introduction of alcohol
Sig. (2-tailed)
(monthly)
N
Frequency of visit after the
Pearson Correlation
introduction of alcohol
Sig. (2-tailed)
(monthly)
N
Spend at Bar/Club
Pearson Correlation
.127
Sig. (2-tailed)
.066
.000
210
210
N
1
.553
.553
.391
.000 210
**
.000 210
210
**
1
.391
210
**. Correlation is significant at the 0.01 level (2-tailed).
Inference: There is significant relation between frequency of visit after the introduction of alcohol and Expenditure from consumer in coffee bar.
53
FOCUS GROUP STUDY: We have conducted a focus group study in which the group of 5-6 people discussed about all the six advertisement. Here we have first shown them all the 6 ads then the discussion was started and they have talked about various things there should be in an advertisement which can affect their purchase and they have also discussed about relatedness of advertisements with their products.
In focus group study we have also made available to our initiator so he has tried to talked about each and every point mentioned in our questionnaire.
Which coffee shop you prefer to visit and reasons for it?
What you order in coffee shop is premeditated or you get influenced by the flaunting menus & promotional offers?
Are you convinced with the fact of allowing alcohol in coffee shops? Justify
In a business like Coffee Bars do you think this a turning point for the profit maximization perspective?
54
LIMITATIONS: 1) Lack of interest and enthusiastic responses may have allowed biases in
this report. Test of sampling error could not be done due to the absence of data regarding the total population size. Correctness of this report is restricted and limited by the degree of authenticity of data collected and sincerity and honesty of respondents .
2) Some of the responded have not been going to the coffee shops or rarely visit, so there responses are considered to be unfavorable then this may affect the results of analysis.
3) The research is not conducted in rural and smaller areas.
4) The sample is only representative of the populations of Noida and Delhi.
5) Since the sample size is small, minor variations may be found in the responses of consumers at large.
55
CONCLUSION & RECOMMENDATIONS
In India, café business needs to focus on its pricing strategies and catering the local needs, increasing awareness about its products and operations and thus expanding the market share. Further it also needs to switch to non-high street areas. For expanding the Indian consumer market, it can cash on the elements such as its “Big global brand name”, diversified product mix, IT technology and ambience.
1. Majority of the consumers are not very much satisfied with the processing quality of Costa Coffee Products and offerings and believe that Costa offerings don’t render value for money.
2. Not many consumers are aware about the varied offerings of liquor in coffee shops and thus café companies need to adopt promotional activities to merchandise themselves as a brand. Open individual stores in non-high street areas. 3. Taking over, merging, or forming strategic alliances with other coffee companies. 4. Majority of consumers think that Coffee Shops outlets which serve alcohol are less in number and not conveniently located as they have presence only in the posh areas. 5. If Consumers have ranked Costa & Barista below its competitor (Café Coffee Day) then is on the basis of Price, Product Quality and quantity, Personal Likings and preferences and Location. 56
Expensive
Low Quality
High Quality
Non - Expensive
6. Coffee Bars are usually perceived as a place for hangout. 7. The most selling products of Coffee Bars are Muffins and drinks and in drinks the most selling variety is Cappuccino followed by Café Latte. 8. The consumers are of age 18 to 35 or usually above 20. 9. There is no loyalty bonus for the employees. 10.
Expanding Indian consumer market.
11.
Market Development - Diversification of the compa ny’s
branches from large super centered to local based sites.
57
12.
Increasing awareness about its products and operations and
thus 7P’s of Service Industry.
58
BIBLIOGRAPHY 1. www.youtube.com 2. www.wikipedia.com 3. www.costacoffee.uk 4. www.cafecoffeeday.in 5. www.baristalavazza.com 6. www.marketingresearch.com 7. www.spss.com/info 8. www.imagesfood.com/news.aspx?id=1366andtopic=1 9. www.indiancoffee.org/newsview.php?newsid=64 10.www.costa.co.uk
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ANNEXURE
QUESTIONNAIRE
Q1. How often do you dine in a restaurant? (a) Daily (b)Few times a week (c) Once a week (d)Twice a month (e)Once a month (f)Rarely
Q2. How frequently do you consume Tea/Coffee (approximately)? {a} On a daily basis
{b} Once a week
{c}Once a month
{d}Other (please state):
Q3. Do you prefer visiting coffee shops at times? {a} Yes
{b} No
Q4. If yes, then how often do you visit coffee shops? {a}Once a week {b}Few times a week {c} Once a month {d}Twice a month {e}Rarely
Q5. Which is your favorite coffee shop? {a} Barista
{b} Café Coffee Day
{c} Costa Coffee
{d} Other
60
Q6. Usually, at what time of the day do you visit a coffee shop? {a} Morning
{b} Noon
{c} Night
{d}All Day
Q7. Normally, what do you prefer consuming in coffee bars? {a} Tea/Coffee
{b} Alcoholic Drinks
{c} Soft
Drinks/other beverages
Q8.Are you comfortable with alcohol being served in coffee bars you usually visit?
{a} Yes
{b} No
Q9.Do you think it is a good idea to allow alcohol in coffee bars? {a} Yes
{b} No
Q10. What type of beverages you consume at coffee bars? (Check all that apply) {a} Beer {b} Whisky/ Scotch/Vodka {c} Wine {d} Hot Beverages like Coffee, Tea {e} Cold Beverages like Cold Coffee, Shakes, Iced Tea {f} Other Refreshments
Q11. What brings you to coffee shop/ coffee bars? {a} Food
{b} Client Meeting
{c} Pleasure
{d} Dating
Q12. Do you think people prefer going to coffee bars over normal bars or pubs? {a} Strongly Agree {b} Somewhat Agree {c} Neutral {d} Somewhat Disagree {e} Strongly Disagree
Q13. What else do you consume along with your coffee/drink at the coffee bar? {a} Starters
{b} Aerated Water
{c} Mini Meals
{d} Deserts
61
Q14. On an average, how frequently you visit coffee bars per month? (a) Before the introduction of alcoholic drinks-
{a} 0-1
{b} 2-3
{c} 4-5
{d}
{c} 4-5
{d}
6 or more
(b) After the introduction of alcoholic drinks?
{a} 0-1
{b} 2-3
6 or more
Q15. How much do you spend during your regular visit to a coffee bar? {a} Rs.0- 500
(b) Rs. 500-1000
(c) Rs. 1000-1500
(d) Rs. 1500 or more
Q16. How much do you spend, when you go to a bar/club? {a} Rs.0- 500
(b) Rs 500-1000
(c) Rs 1000-1500
(d) Rs 1500 or more
Q17. Do you think that you have increased your expenditure in coffee bars with the introduction of alcoholic drinks? {a}Yes
{b} No
Q18. Do you believe that the brand‟s sales are affected by advertisements, celebrity endorsements, images, product qualities, package designs and other factors? {a}Yes
{b} No
If so, which one of them is the most important to you? ……………………………………………………………..
Ambience
Pricing
Quality
Friendliness
Wi-Fi
Availability of
of Staff
Accessibilit
Preferred Brands
y Barista
62