1. Executive summary ………………………….. ………………………….. ………………………….. …………… 2 2. Purpose… [605525]
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Contents
1. Executive summary ………………………….. ………………………….. ………………………….. …………… 2
2. Purpose and scope ………………………….. ………………………….. ………………………….. ……………… 3
3. Research objectives ………………………….. ………………………….. ………………………….. ……………. 4
4. Literature review ………………………….. ………………………….. ………………………….. ……………….. 5
5. Research approach ………………………….. ………………………….. ………………………….. …………….. 7
5.1 Research design ………………………….. ………………………….. ………………………….. ……………. 7
5.2 Sampling ………………………….. ………………………….. ………………………….. ……………………… 8
5.3 Types of error ………………………….. ………………………….. ………………………….. ………………. 9
6. Schedule and budget ………………………….. ………………………….. ………………………….. …………. 10
6.1 Schedule ………………………….. ………………………….. ………………………….. ……………………. 10
7. Appendices ………………………….. ………………………….. ………………………….. ……………………… 11
Questionnaire ………………………….. ………………………….. ………………………….. ………………….. 11
References ………………………….. ………………………….. ………………………….. ………………………. 14
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1. Executive summary
Wawa, Inc. is a privately held company which began in 1803 as an iron foundry in
New Jersey. Today, Wawa is a every day stop for fresh, built -to-order foods, beverages,
coffee, fuel services, and surcharge -free ATMs. Wawa stores are located in Pennsylvania,
New Jersey, Delaware, Maryland, Virginia and Central Florida. The stores offer a large fresh
food service selection, including Wawa brands such as freshly brewed coffee, hot breakfast
sandwiches and built -to-order specialty beverages. (Wawa, 2017)
This study will be conducted in order to determine the success factors of Wawa in
internationalizin g their trend to other countries / continents through market segmentation.
This study will also aim to increase the awareness and provide a better understanding
of the issues and problems concerning lifestyle and benefits studies and in order t o contribute
an effective approach in addressing their problems.
If the success factors of Wawa in internationalizing their trend to other countries /
continents will be determined, this study will be a benefit to the company.
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2. Purpose and scope
The overall aim of this study is to create a vision of the Romanian coffee market and
to establish if the internalization of Wawa it is possible on this market. This study attempts to
look at where along the road should the new concept be intr oduced on the market, due to the
popularity of coffee among the population. The objective is to identif y the needs of the
consumers from Brasov in order to meet with their views through a new coffee shop with
personalized coffee based on their preference s and expectations.
The study can generate new knowledge which can provide Wawa's marketing
department with new directions in undertaking further research in expanding the company.
Through this research the Wawa company can use in making the best decisi on
regarding the opening for the new coffee shop and also for establishing the best prices,
distribution and marketing strategies.
It is a comprehensive research that not only the situation analysis can be conducted but
also market response for the new co ncept can be collected.
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3. Research objectives
The problem definition is to establish if the concept of " coffee – do it yourself" will
be successfully introduced on the coffe e market of Romania.
For a research project to be successful, it must serve the objectives of the organization
and of the decision maker. It is proposed that the knowledge gained from this study will serve
to achieve the following objectives :
1. To identify the nature of product offers from competitors
2. To determine the extent of demand for a new coffee shop in Brasov
3. To identify the characteristics that encourage consumers to choose coffee to go
the importance of price
the importance of cup size
the importance of brewing process
In order to complete the first objective I have used Q3, Q4, Q5, Q8
For the second objective : Q10, Q11, Q12
For the third objective: Q6, Q7, Q8, Q9
The other questions are demographic questions .
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4. Literature review
In Romania, coffee consumption decreased sharply in the 80‟s, due to the severe
restrictions imposed to food imports. In that period, coffee became very scarce and the black
market flourished. In 1990 imports were liberalized and coffee imports and consump tion
increased 2.4 times in 20 years (1991 to 2011).
Consumption doubled between 1990 and 2005 and then a diminishing trend appeared:
it went down by 10% between 2005 and 2009, and then resumed a slight upward trend in
2010 and 2011. Still, the per capit a consumption in Romania is the third lowest in the EU -27.
The EU -27 average coffee per capita consumption was 4.89 kg in 2010, with significant
variations among the Member States. The highest coffee consumers were in 2010: Finland
(12.12 kg/capita), Denma rk (9.46 kg/capita) and Sweden (7.89 kg/capita). Romania, ranking
25-th among the Member States, consumed only 2.25 kg/capita . (Romania in the European
Union and World coffee market, 2013 )
A market study (Popescu, 2010 ) performed in urban areas overall Romania (all
regions) in 2010 showed that the main factors determining the coffee purchasing are: price
(40%), quality (33%), brand and promotional offers (10% each). Other factors, such as the
variety of the product range, attractive packaging, details on the label, availability in the shop
and commercials have virtually no effect in the coffee purchasing decision. In 97% of the
cases, producer brands are purchased (as opposite to private brands – those of the
supermarkets), despite higher prices. Purchase of super premium coffees is quite rare (less
than 5%) in supermarkets, but it is expanding in the “ coffee to go ” segment (coffee shops,
restaurants). The segmentation of producer brands purchase by size of the town, age group
and income group did not chan ge the above -mentioned results.
A study on drinking patterns in Romania in 2007 (Daedalus Consulting, 2007 ) shows
some interesting features. First, Romanians prefer by far the coffee to the tea. The most
consumed type of coffee is the simple roasted (65% ), while simple instant coffee takes only
15%. The remaining 20% include other types of soluble coffee (coffee mixes, such as “3 in 1”
with added sugar and creamer, cappuccino etc.). The category of roasted coffee consumers is
drinking daily about 2 cups p er day, while the consumption frequency and quantity in the
category of soluble coffee consumers is significantly lower. Consumers drinking both roasted
and soluble coffee are generally adding sugar (about 80%), but no milk (75%).
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Another specific Romani an feature of the coffee consumption is the way it is brewed:
8% are using espresso machines, 32% coffee filters and – this is still very traditionally
Romanian: 60% boiled coffee (called also Turkish or Greek coffee). This custom is inherited
from the old Ottoman Empire which introduced in the first place coffee consumption in
Romania, but, nonetheless, the result of several decades of virtually no appliances imports
(coffee filters were sold in Romania after 1990 only and espresso machines even later in t he
90‟s.
The sales volume diminished both for roasted coffee (for at -home consumption), and
for sales for away -from -home consumption (coffee shops, restaurants, vending machines).
The future evolutions on the coffee markets are uncertain. The continuatio n of the economic
crisis lead to a contraction in demand, fueled by the decrease of incomes in southern EU
countries, such as Greece, Spain and Italy, major coffee consumers on the European and
world markets .
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5. Research approach
5.1 Research design
The research design adopted in this market research project is a mix of both
exploratory and descriptive research designs. This research was conducted by use of
exploratory techniques , in order to gain enough understanding to proceed with the re search
project, like unstructured observations, based on my previous experience from working at
Wawa and on the depth interviews I did with the managers.
Descriptive research will be adopted to describe the characteristic like attitud e,
perception, awareness levels and buying behavior of relevant groups in the sample. For this I
will use a cross sectional design, a type of research involving the collection of information
from any given sample of population elements only once (Marketing Research, 20 06), as it is
less time -consuming, inexpensive (it will not generate big expenses for the company) and it
gives a good and quick picture of the current situation. Given the advantages and
disadvantages of each of the methods, I decided to do a survey using a questionnaire because
it appears to be the most suitable research instrument for a wide range of reasons. Firstly
questionnaires can allow for anonymity and are impersonal, because If the researcher were to
conduct interviews, recipients may feel t hey have to answer in a particular way or limit their
responses.
The questionnaire is used as a mean to capture data by asking people questions, and it
is one kind of document that is used for marketing intelli gence collection (Kent 2007 ).
Through a help ful question can gain the best information by asking customer, and then
making the right conclusion. The step for making an ideal questionnaire is a plan, formulate
questions, ensure and organize the words.
Telephone interviewing is the best method for ga thering information quickly; the
interviewer is also able to clarify questions if respondents do not understand them. The
response rate is typically higher than in the case of mailed questionnaires.
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5.2 Sampling
My target population is formed from students who took part in a Work and Travel
programmed with American Challenge Agency , that may or may not have used the Wawa
stores.
I suggest making use of the existing database of American Challenge for the creation
of the list of contact. It is because the registration of a American Challenge account requires
an email account and a phone number . The database can provide the contact method to our
target population.
I suggest probability sampling because I have the complete list of target population
and the sample representativeness, reliability and accuracy can be assured under the
computing of confidence intervals.
Under probability sampling, I further suggest the use of systematic sampling whic h is
a probability sampling technique in which the sample is chosen by selecting a random starting
point and then picking every element in succession from the sampling frame. For this w e need
to know the s ample size which is influenced by the average s ize of samples in similar studies,
and for this reason , based on the usual sample sizes used in marketing research studies the
minimum sample size for test marketing studies is 200 respondents. From a total of 600
people from the database, the sampling i nterval, it is going to be 3 so a random number
between 1 and 3 is selected. If, for example, this number is 3, the sample consists of elements
3, 6, 9, 11 and so on.
Another pragmatic solution is to turn to random number generators in most data
analysis packages , which allows us to set a number of characteristics of our target population,
including the nature of distribution of the data, and to create a table of random numbers on a
separate worksheet.
After gathering all the information, the collected data will be analyzed with the aid of
SPSS software , in order to see the significance of relationships between the selected variables.
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5.3 Types of e rror
In order to avoid the big 3 sources of error in survey research, for the sampling error I
am going to use systematic sampling to obtain a more representative and reliable (lower
sampling error) sample and to ensure that the sample size is correct I can use the
mathematical formula to calculate it, with the confidence interval . (Marketing Research,
2006)
The response error can be avoid if the initial questionna ire is tested on a group of 10
people in order to be able to identify most of the major issues. Based on their answers I did
some changes to the ques tionna ire for the questions and layout that were not clear enough
and needed to be improved.
For non -response e rror I can post-pone the call for the next day or better to substitute
for non -respondents other elements from the sampling frame who are expected to
respond .(Marketing Research, 2006)
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6. Schedule and budget
6.1 Schedule
The research will be conducted over a period of 2 months, as it fallows:
Week 1 Preparation for researchers based on the subject and setting up of database
Week 2 to 4 Data Collection Surveying and data collection
Week 4 to 5 Data Collection Summarization and filing of data
Week 5 Transition Database transmission
Week 6 to 7 Data Analysis processing by statistical models
Week 8 Data Analysis Report publishing
6.2 Budget
Quantity Cost (€) Total (€)
Salary Research Analyst
(40 hours) 2 9 720
Surveying Analyst
( 80 hours) 2 9 1440
Telephone Bill 1 100 100
Additional Costs 500
Total = 2760 €
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7. Appendices
Questionnaire
1. Do you usually drink coffee?
o Yes
o No
2. How often do you go out for coffe e in a typical week?
o everyday
o 2-3 times
o 4-6 times
o 7-9 times
o 10 or more
3. What kind of coffee do you buy and consume on a daily basis?
o Regular
o Decaffeinated coffee
o Colombian
o Dark Roast
o Latte
o Espresso
4. What time of the day do you most frequently drink coffee? (Please tick more than one)
o Morning
o Noon
o Afternoon
o Evening
o Midnight
5. Where do you drink coffee most often? Please rate 1 to 5, 1 most often – 5 less often
Others ( please specify ):
Home
Restaurant
Coffee shop
Work
School/college
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6. What attributes are important to you when consuming coffee at coffee shop? (Please
tick the suitable number. 1= Extremely important 5= Not important)
1 2 3 4 5
Types of
coffee o o o o o
Flavor o o o o o
Taste o o o o o
Strength o o o o o
Price o o o o o
Cup size o o o o o
Others (please specify)
7. Have you ever drink coffee to go before? ( if yes continue, if no go to Q
o Yes
o No
8. When you choose to drink coffee to go which is the quantity you prefer?
o Small 354 ml
o Medium 473 ml
o Large 591 ml
o Extra large 709 ml
9. What are your 3 favorite aspects about coffee to go compared to other beverages?
1)
2)
3)
10. How satisfied are you about the fallowing aspects regarding hot drinks from coffee to
go ? ( 1 very satisfied/ 5 unsatisfied?
Quality of brewing
Variety
Price
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11. How likely are you to buy from a coffee shop where you can prepare your own
coffee?
Definitely will Probably will Might or might not Probably will not Definitely will not
Any other comments
12. To what extent would the idea of a unique price based on the cup size ( no matter what
you chose for it), influence you?
Strongly influential Influential Neither Not influential
13. To what extent would following promotions influence you to purchase coffee? (Please
tick the appropriate number. 1 = Strongly influential) 5 = Not influential
1 2 3 4 5
o Loyalty card
o Free voucher
o Early bird discount
o Membership discount
o Price per cup size
14. What is your gender ?
o Male
o Female
15. Are you currently ?
o Employed for wages
o Full time employed
o Part time employed
o Self-employed
o Unemployed
o A student
o Other
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References
1. Naresh K. Malhotra, David F. Birks, (2006) , Marketing Research – An Applied
Approach , Prentice Hall
2. Kotler Philip , (2001) Marketing Management, Millenium Edition , Prentice Hall
3. Gavrilescu C. (2013) Romania in the European Union and World coffee market,
Scientific papers, vol XV
4. Popescu, M. (2010). Six companies are dictating on the coffee market for years. Why
are big players unwavering, https://papers.ssrn.com/sol3/papers.cfm?_id=2284 076
5. Daedalus Consulting (2007). Coffee consumption habits – public study,
http://www.daedalus.ro/coffee/coffee_eng.pdf
6. Wawa, (2017) available at: https://www.wawa.com
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