(Solved Homework): Joe Brown is ready to start a new career. After spending 30 years as a market researcher and inspired…

1.Review Case 3.1: A New “Joe” on the Block and Respond to questions 1-4, 6-7 (skip #5)

A New Joe on the Block se to start a new career.After spendingSill another study compared the king experience.A sample of 50 consumers in St. Louis, Mis- siness. However, before opening his first shop, he realizes that a great souri, were interviewed and asked 30 years as a market researcher and inspired by the suc cess of Starbucks, he is ready to enter the coffee shop coffee-drin bu deal of research is needed. He has some key questions in mind. to list the coffee shop they fr quented most. Starbucks was listed more consumers than any other place. A sa pecentage listed Dunkin Donuts but none listed McDonalds, despite their efforts at creating a premium coffee experi- What markets in the United States hold the most promise for a new What type of location is best for a coffee shop? What is it that makes a coffee shop popular? What coffee do Americans prefer? How would consumers respond to coftee ence.The study did not ask consumers to compare the tastes of the A Google search reveals more previous research on coffee, coffee across the different places. markets, and related materials than he ever expected. Many studies address taste. For example, he finds several studies that in Still another study about Dunkin Donuts claims that m hard-working Americans prefer Dunkin Donuts coffee another compare the taste of different coffee shop coffees. Most commonly, they compare the taste of coffee from Starbucks against coffee from McDonalds, Dunkin Donuts, Burger King, and some- times a local competitor. However, it becomes difficult to draw a Joe also wants to find data showing coffee consumption pat- terns and the number of coffee shops around the United States, so he spends time looking for data on the Internet. His searches dont onclusion as the results seem to be inconsistent. reveal anything satisfyi g- One study had a headline that poked fiun at Starbuckshigh-priced AsJoe ponders how to go about sta coffee. The author of this study personally purchased coffee at four wonders about the relevance of this previuseach.Is it useful at places, took them to his office, tasted them, made notes, and then all? He even questions whether he is capable of doing any primary drew conclusions. All the coffee was tasted black with no sugar rescarch himself and considers hiring someone to do a feasibilit Just cups of Joe. He reached the conclusion that McDonalds Pre- study for him. Maybe doing research is easier than using research. mium Coffee (at about $1.50 a cup) did not taste quite as good as Starbucks House Blend (at about $1.90 a cup), both of which were Questions much better than either DunkinDonuts (at about $1.20) o Burger What ae the top chree key decisions faced by Joe? King (less than $1). This study argued that McDonaldssst,l2. What are the key deliverables that an outside researcher should things considered. Another study was written up by a good critic who s sinply. How relevant are che cofièe taste studies cited above? Explin produce to help Joe with the key decisions? inmerested in identifying the best-tsting coffee. Again, he tasted What Baws in the coffetaste stadies should Joe consider in try- them all black with nothing added. Each cup of coffee was coning to weigh the merits of their results? sumed in the urban location near the inner city center where he 5. Try to do a quick search to explore the question:Are Amercan lived. He reached the conclusion that Starbucks coffee had the best flavor although it showed im consumer preferences the same all across the United States? room for improvement. McDonalds 6. If a consultant comes in to do the job, what are three key deliv- premium coffee was not as good, but better than the other two. erables that would likely be important to Joe in making a deci- Dunkin Donuts coffee had reasonably unobjectionable taste but on to launch the Cup of Joe coffee shop? was very weak andw ry. The Burger King coffce was simply not GPS technology such as the iBea- con described in a previous chapter could be an opportunity to Yet another study talked about Starbucks becoming a huge com- pany and how it has lost touch with the common coffee shop coffee customer. The researchers stood outside a small organic specialty Sources: S shop and interviewed 100 consumers as they exited che shop. They Today, (March 26, 2008), http/www.usatoday.com/money/industries asked, Which coffee do you prefer?The results showed a prefer food/2006-03-26-coffee xhtm, accessed July 20, 2008: Associated P s more Joe? How might that be explored? ver, J, Taste Test: The Little Joes Take on Starbucks, USA McDonalds Coffee Beats Starbucks, Says Consumer Reports, The Seattie Times, (February 2, 2007), Squidoo (2014), Starbucks versus Dunkin Donuts Debate: e, tea, and incense s Starbacks last behind McDonalds, Burger King, Panera Bread, and UtS starbucksvsdunkindonuts, accessed April 6, 2014

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Joe Brown is ready to start a new career. After spending 30 years as a market researcher and inspired by the success of Starbucks, he is ready to enter the coffee shop coffee business. However, before opening his first shop, he realizes that a great deal of research is needed. He has some key question in mind.

Expert Answer


1. Key top three decisions faced by Joe:

Joe faces the decisions of

– what type of coffee do American’s prefer,

– what type of location is best for a coffee shop

– where is the best place in the United States toopen a coffee shop.

Other key decision he faces is to do Primary research or to outsource it.

2. Key deliverables by outside researcher would be:

– To find out which is the most prreffered coffee

– Which is the best place to open a coffee shop

3. How relevant are the coffee taste studies cited above? Explain.

The coffee taste studies are somewhat relevant. Although the taste studies showcased the top four places to get coffee, there are many more locations that were not taken into consideration. The results of both the taste tests yielded different conclusions.The taste tests focused on chain coffee shops but Joe will be opening a local type of a coffee shop

4. Flaws in the coffee taste studies

– They ahowcased only top four coffee shops and ignored a local famous shops.

– Location of the study was very limited and so was the sample size.

Joe should not put in more efforts to understand the merit of the studies. Instead he should get done his own study as his objective is to open a local coffee shop

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