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THE TEA HOUSE PROJECT

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THE TEA HOUSE PROJECT Powered By Docstoc
					THE TEA HOUSE
   PROJECT

 Marketing Research Team
      Reshma Gala
       Shawn Kline
      Jae-Yeon Joo
       Amol Chopra
         MKTG-652
         Introduction: The Concept
 Coffee a very popular beverage among
  Americans.
 Presence and success of cafés specializing
  in coffee. Example: Starbucks and Cosi
 No predominant presence of café
  specializing in serving tea


November 20, 2002     MKTG 652
                    Drexel University
         Introduction: The Concept
 Success of coffee and cafés in tea drinking
  countries, ex: India, Taiwan, Korea, China,
  Russia
 Therefore test the feasibility of tea and tea
  house in coffee drinking country America,
  specifically in the tri-state area.


November 20, 2002     MKTG 652
                    Drexel University
                    Purpose of Research
 Is it feasible to introduce a Tea House in
  the tri-state area?
 Who should be our target market?
 What are the current consumption
  patterns of our target market?
 What price should we charge for a cup of
  tea?
 Will the “Tea House” concept work?
November 20, 2002            MKTG 652
                           Drexel University
         Objectives and Hypothesis
   Men and women between the age group of
    18 and 30 years, both students and young
    working professionals, with a higher
    disposable income would be willing to
    visit Tea House
   People would be willing to pay between $1
    and $3 for a cup of tea
   People already visiting café would be
    willing to visit Tea House
November 20, 2002     MKTG 652
                    Drexel University
         Objectives and Hypothesis
 People giving more importance to
  nutritional value while choosing a
  beverage would be willing to visit Tea
  House
 Recognize a pattern as to the part of the
  day people would be willing to visit the
  Tea House
 Understand the ethnic background of
  people willing to visit the Tea House
November 20, 2002     MKTG 652
                    Drexel University
         Objectives and Hypothesis
   General awareness of different types of tea
        – Black Tea, Green Tea, Oolong Tea, Chai
   General awareness of different forms of
    tea consumption
        – Tea bags, Iced Tea, Loose Tea
   Places people generally buy their
    beverages from
        – Convenience stores, vending machines

November 20, 2002        MKTG 652
                       Drexel University
         Objectives and Hypothesis
 Understand the current café-visit habits
      – Frequency of visit
      – Accomplice
      – Average spending per visit
      – Other products consumed in a café




November 20, 2002       MKTG 652
                      Drexel University
                    Survey
 Sample Size: 99
 Location: Pennsylvania, New Jersey, and
            Delaware
 Collected at work places and colleges
  (Drexel & UD)
 Convenience sample was used for pretest
  of questionnaire
November 20, 2002     MKTG 652
                    Drexel University
                               Survey
                Demographic info of respondents
                     AGE
                    55-above                       GENDER
                      1%
       41-55
          20%



                                                            Male
                                                            39%



                                18-30
                                53%

                                          Female
                                           61%
   31-40
    26%




November 20, 2002                MKTG 652
                               Drexel University
                                              Survey
                  Demographic info of respondents
                      INCOME                                              OCCUPATION
                      100k-above                                           Others

          75k-100k       1%                                                  3%

            17%




                                               below 25k                               Student
                                                 40%                                    40%

50k-75k
 14%




                                                    57%
                                                   Working Professional


            35k-50k
                                   25k~ 35k
              20%
                                     8%


 November 20, 2002                               MKTG 652
                                              Drexel University
                                 Survey
             Demographic info of respondents
                                            ORIGIN
                                         Other
                                           1%


                                Hispanic                    African American
                                   4%                              19%




                    Caucasian
                                                                    Asian
                       51%
                                                                      25%




November 20, 2002                          MKTG 652
                                        Drexel University
                    Questionnaire
 22 Questions
      – Nominal scale: gender, origin
      – Interval scale: income, price related
      – Ordinal scale: consumption pattern
      – Ratio scale: income, frequency of visit café
      – Open end question



November 20, 2002          MKTG 652
                         Drexel University
     Target Market Analysis: Age
 Ho: Decision to visit a tea house is
  independent of the age of a person
 Ha: Decision to visit a tea house depends
  on the age of a person.
 Analysis: Asymp. Sig. (2 sided) > 0.05
 ACCEPT NULL
 Conclusion: People in the age group of 18
  to 30 will not necessarily visit a tea house.
November 20, 2002     MKTG 652
                    Drexel University
                        Impact of Age on Visit to Tea House

             120

             100

                                    35               31
              80                                                     45
Percentage




                                                                                                Will not Visit
              60
                                                                                                Will Visit
                                                                                     100

              40
                                    65               69
                                                                     55
              20

               0      0                                                            0
                   Under 18     18 - 30          31 - 40         41 - 55         Over 56
                                                   Age
                        Note : Number of respondents under age of 18 = 0 & over age of 56 = 1
November 20, 2002                                 MKTG 652
                                                Drexel University
Target Market Analysis: Income
 Ho: Decision to visit a tea house is independent of
  the income of a person
 Ha: Decision to visit a tea house is dependent on
  the person‟s income
 Analysis: As Asymp. Sig. (2 sided) > 0.05
 ACCEPT NULL
 Conclusion: Persons with a high disposable
  income of over $50,000 p.a. will not necessarily
  visit a tea house
November 20, 2002       MKTG 652
                      Drexel University
                              Impact of Income on Visit to Tea House

                120
                100                                                                   29
                                             15
  Percentage

                               35                       35
                    80                                                38

                                                                                                   70   Will not Visit
                    60
                                                                                                        Will Visit
                                             85
                    40                                                                79
                               65                       65            62
                    20                                                                             30

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                                                                        10
                                                       Income in $
November 20, 2002                                            MKTG 652
                                                        Drexel University
Target Market Analysis: Gender
 Ho: Decision to visit a tea house is independent of
  the gender of the person
 Ha: Decision to visit a tea house is dependent on
  the gender of a person
 Analysis: As Asymp. Sig. (2 sided) > 0.05
 ACCEPT NULL
 Conclusion: No indication that a particular
  gender group would be more inclined to visit a
  tea house, than another group.
November 20, 2002       MKTG 652
                      Drexel University
                      Impact of Gender on Visit to Tea House

               120

               100
                       30
               80
  Percentage




                                 47

                                                               Will Not Visit
               60                                              Will Visit

               40      70
                                 53
               20

                0
                     Female    Male
                                      Gender

November 20, 2002                       MKTG 652
                                      Drexel University
             Target Market Analysis:
                   Occupation
 Ho: Decision to visit a tea house is independent of
  the occupation of a person
 Ha: Decision to visit a tea house is dependent on
  the occupation of a person
 Analysis: As Asymp. Sig. (2 sided) > 0.05
 ACCEPT NULL
 Conclusion: It is not necessary that only student
  will be interested in visiting the tea house.

November 20, 2002       MKTG 652
                      Drexel University
                     Impact of Occupation on Visit to Tea House

               120
               100
  Percentage


                       36             37                                    33
               80
                                                                                     Will Not Visit
               60                                                                    Will Visit
               40                                                           67
                       64             63
               20
                0                                               0
                                   Professional




                                                                            Others
                                                               Retired
                       Student



                                    Working




                                          Occupation
                                 Note : Number of retired respondents = 1
November 20, 2002                            MKTG 652
                                                  Drexel University
  Target Market Analysis: Origin
 Ho: Decision to visit a tea house is independent of
  the origin of a person
 Ha: Decision to visit a tea house is dependent on
  the origin of a person
 Analysis: As Asymp. Sig. (2 sided) > 0.05
 ACCEPT NULL
 Conclusion: It is not necessary that persons
  belonging to a certain ethnic background will be
  interested in visiting the tea house.
November 20, 2002       MKTG 652
                      Drexel University
                         Impact of Ethnic Background on Visit to Tea
                                           House

                     120
                     100                                                                   0
                                   22
  Percentage


                         80                    33              40
                                                                              75               Will Not Visit
                         60
                                                                                        100    Will Visit
                         40        78
                                               67              60
                         20
                                                                              25
                         0
                              an



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                                                                    isp



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                       m




                                                 au


                                                                H
                      A




                                                C
                     n
                ica
                fr
               A




                                                         Origin
                                   Note : Number of respondents from „other‟ background = 1
November 20, 2002                                       MKTG 652
                                                     Drexel University
                Consumption Patterns
   Ho: Decision to visit a tea house is
    independent of the decision to visit cafes
   Ha: Decision to visit a tea house is
    dependent of the decision to visit cafes
   Analysis
        – Asymp. Sig. <.05; REJECT NULL
        – Conclusion: People who currently visit cafes
          are more likely to visit a tea house


November 20, 2002          MKTG 652
                         Drexel University
      Consumption Patterns (continued)
   Ho: Decision to visit a tea house is independent of
    the individual‟s concern for nutrition
   Ha: Decision to visit a tea house is dependent of
    the individual‟s concern for nutrition
   Analysis:
        – Asymp. Sig. >.05; ACCEPT NULL
        – Conclusion: People who are concerned about
            nutritional value of their beverages will not
            necessarily visit a tea house

November 20, 2002                MKTG 652
                               Drexel University
                                        Consumers' Awareness of Tea
         100%         6
                                11
          90%
                                          27
                                                     32
                                                               36
          80%
          70%                                                               56

          60%
                                                                                    94         91
          50%         93                                                                              Unaware
                                88
                                                                                                      Aware
          40%                             72
                                                     67
                                                               63
          30%
                                                                            43
          20%
          10%
                                                                                     5         2
           0%
                              He rbal




                                                   Black




                                                                                    Othe rs
                                                               Chai Te a
                                         De caf
                    Gre e n




                                                                           Oolong




                                                                                              White
                                                    Te a
                                          Te a




                                                                                               Te a
                     Te a



                               Te a




                                                                            Te a
November 20, 2002                                   MKTG 652
                                                  Drexel University
                            Tea Consumption Patterns
100%

90%         21         24

80%

70%                                   61

60%
                                                          95      98
50%                                                                     Do Not Drink
                                                                        Drink
40%         78
                       75

30%

20%                                   38

10%
                                                          4
 0%                                                               1


        Tea Bags    Iced Tea      Loose Tea             Others   None

November 20, 2002                     MKTG 652
                                    Drexel University
                                  Preferred Time to Visit a Tea House

 100%


  90%


  80%


  70%
           59                                     59                      59
                                                              62
  60%                                 71

                        80
                                                                                      83
                                                                                             Would Not Visit
  50%
                                                                                             Would Visit

  40%


  30%


  20%
           29                                     29                      29
                                                              26
  10%                                 17

                         8
                                                                                      5
   0%
          Early     Before Noon       Early       Late       Early    Late Evening   Other
         Morning                   Afternoon   Afternoon    Evening


November 20, 2002                                      MKTG 652
                                                 Drexel University
                              Pricing
 Assumption: Majority of visitor would pay $1 ~
  $2.99 for a cup of tea
 Result of Frequency test: very supportive
      – Under $1: 11.2%
      – $1 ~ $2.99: 71.9%
      – $3 ~ $ 4.99: 13.5%
      – $5 ~ $6.99, $7 ~ 9.99, & $10 ~ above: 1.1% each


       * Majority of People(30.2%) who willing to visit Tea House
         answered they pay for $3 ~ $6.99 per visit in Café

November 20, 2002                  MKTG 652
                                 Drexel University
                    Appraisal
 Diversity of respondents with regard to
  gender, age, income and occupation
 Questionnaire :
      – Short sightedness in including few questions
      – Difficulty in analyzing open ended questions
      – Structure of some questions



November 20, 2002         MKTG 652
                        Drexel University
                    Future Opportunities
 First Step – Green Signal
      – overall acceptance among variety of age groups,
          income segments and occupations.
 Further research and analysis can be done on
      – specific location
      – frequency of visit to a tea house
      – snacks to be served along with tea
      – ambience people would be expecting in the Tea House
      – secondary research
November 20, 2002              MKTG 652
                             Drexel University
                    Summary
 Primary Research on „Feasibility of a Tea
  House‟ in the Tri-state area.
 Survey by using Questionnaire.
 Statistical Analysis using SPSS
 Statistical Tools
      – Cross tabulation
      – Frequency Counts


November 20, 2002            MKTG 652
                           Drexel University
                    Conclusion
 An executable idea – „Tea House‟
 Accepted by the market
 Further analysis required for specific
  aspects




November 20, 2002       MKTG 652
                      Drexel University
                    Thank You!!!
                      Questions?




November 20, 2002         MKTG 652
                        Drexel University

				
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