Assignment:
Hank has doubts that funds will be available to contract with an external research organization. He asks if you would be able to perform adequate marketing research by yourself using information on the Internet.
Select a region of the world (not North America) where you feel a market for high-end coffee brewing equipment exists. Beginning with your knowledge of domestic data sources, research your selected region using the Internet. Summarize your search strategy and research results. Were you able to find useful sources of data on the buying behavior for your product in that region? Did you generate enough data to support a strategic initiative into that region? What is your recommendation to Hank on how to research the international market?
Looking for suggestions which regional areas a market for high end coffee brewing equipment systems exists to assist with this task. Experiencing difficulties locating information where commercial market/opportunities in gourmet or high end coffee brewing equipment exists. Assistance recently gathered unfortunately unable to determine/locate sources where information was gathered for further research/reference.
Case Scenario: Market Research
Let me quote an example of a famous shoe manufacturing and marketing company that sends two of its best salesmen to some African countries to find the possibility of selling shoes in those regions.The first salesman writes back that as natives are not in habit of wearing anything like shoes or slippers, there is hardly any scope for sale of shoes there.The second more imaginative salesman writes back as the people do not wear shoes in these parts there exists a goldmine of a market for selling shoes there.This is the situation existing in the case of length and breadth of India. Hence, selection of India as a region where a market for high end coffee equipment ,seems appropriate.With the advent of the MNCs ,world renowned companies setting up their BackOffice Processing (BPOs) units in various Indian states,bringing along with them their coffee culture,demand for coffee has shot up among urban cash rich middle class Indians.This has helped companies like Barista and Cafe Coffee Day flourish at every nook and corner in the major cities across India.Coffee is something of a cultural icon in Tamil and Kannada cultures in South India. It is a revered present-day tradition in households. It is customary to offer a cup of home ground and brewed coffee to any visitor.South Indians have been using coffee for generations and have developed their own methods of roasting and brewing and tend to stick their traditional methods blindly but with proper propaganda,advertisement and practical demonstrations for the use and advantages of modern brewing equipment, this market could be further and easily developed.In North India, the emergence of coffee culture has been rapid in both households and workplaces.Hence it can be safely assumed that there is a huge scope for marketing high end coffee brewing equipment for both commercial and household puposes.However,the fact that in this market the customers are price conscious and would not go for an expensive coffee brewing equipment must be considered.For instance Barista markets the home brewing equipment, known as a ‘plunger pot’.It is one of the purest ways to brew coffee. Attractive and extremely simple to use, and it is also the most popular home brewing device.
India with its large population has the potential to consume large amounts of good coffee and this has already drawn the attention of global coffee companies. India not only consumes but is also one of the major coffee growers in the world.Indian coffee is the most extraordinary of beverages, offering intriguing subtlety and stimulating intensity. India is the only country that grows all of its coffee under shade. Typically mild and not too acidic, these coffees possess an exotic full-bodied taste and a fine aroma. India's coffee grows between 2,900 and 5,900 feet above sea level, usually on terraces in the mountainous regions.Good Indian coffees are grown in the states of Karnatka (formerly Mysore - approximately 80% of Indian coffee is grown here), Kerala, and Tamilnadu (formerly Madras). In good years, these coffees can contain acidity typical of Guatemalan coffee, and the full body of a good Javanese coffee. In addition, these coffees incorporate the unique spicy flavours of nutmeg, clove, cardamon and pepper.India also produces monsoon coffees, in which green beans have been exposed to the monsoon winds, blowing through open warehouses in India's rainy season. This process reduces acidity and enhances sweetness, making them similar to Indonesian aged coffees.
The coffee business sees growing acceptance throughout the region, with hundreds of new coffee shops opening in the last few years. Espresso Bars and four and five stars hotels continue to serve more and more of the best the industry has to offer. Now is the chance to tap into this growing market.
Overburdened with excess of coffee that has pushed the prices at 30-year low, producers want the government to allow duty-free import of brewing equipments.The Coffee Board has recommended a sharp cut in Customs duty on roasting and brewing equipment, which when comes into effect could eventually boost domestic consumption. The Board had suggested reducing the import duty from the current 34 per cent to about five per cent for a period of five years. The reduction in import duty is mainly being done with an objective of boosting domestic consumption. The producers has for some time now been demanding reduction in import duty on coffee equipment.
The duty-free entry of brewing equipment would help encourage consumers to take to coffee and thereby contributing to improvement in prices. Duty-free import of coffee brewing machines will help develop domestic markets, thereby lowering India's excessive dependence on exports. Currently, India exports around 80 per cent of domestic coffee production.
Search Strategy and research results-It is imperative to find out if a new and modern equipment would be accepted if launched in the market.I searched the internet to understand if Indians were ready to try something new such as coffee brewing equipment.India is an emerging market for highend coffee equipment and the market is yet to be fully explored.Researching various websites enabled me to understand that the Indian market has huge potential and is waiting to be explored and exploited.Currently there are only a few companies like Barista that are tapping the potential and reaping benefits. There is an increase in demand and supply of these equipments to restaurants, offices even households will be successful.Internet was very useful in gathering this information.
To research international markets,it is essential to first assess the demand for the product in a particular region,compare this with demand in other regions. Narrow down and select that region where supply falls short of demand.It is important to understand the culture that region or countryor buying behaviour of consumers or current trends in the market, government's policies, laws, regulation, competition from both domestic and foreign competitors and accordingly set a price for the product.