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THE TEA HOUSE PROJECT

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

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THE TEA HOUSE PROJECT

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  1. THE TEA HOUSE PROJECT Marketing Research Team Reshma Gala Shawn Kline Jae-Yeon Joo Amol Chopra MKTG-652

  2. 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 MKTG 652 Drexel University

  3. 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. MKTG 652 Drexel University

  4. 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? MKTG 652 Drexel University

  5. 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 MKTG 652 Drexel University

  6. 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 MKTG 652 Drexel University

  7. 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 MKTG 652 Drexel University

  8. Objectives and Hypothesis • Understand the current café-visit habits • Frequency of visit • Accomplice • Average spending per visit • Other products consumed in a café MKTG 652 Drexel University

  9. 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 MKTG 652 Drexel University

  10. GENDER Male 39% Female 61% SurveyDemographic info of respondents AGE 55-above 1% 41-55 20% 18-30 53% 31-40 26% MKTG 652 Drexel University

  11. INCOME 100k-above 1% 75k-100k 17% below 25k 40% 50k-75k 14% 35k-50k 25k~ 35k 20% 8% SurveyDemographic info of respondents OCCUPATION Others 3% Student 40% 57% Working Professional MKTG 652 Drexel University

  12. ORIGIN Other 1% Hispanic African American 4% 19% Caucasian Asian 51% 25% SurveyDemographic info of respondents MKTG 652 Drexel University

  13. 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 MKTG 652 Drexel University

  14. 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. MKTG 652 Drexel University

  15. Note : Number of respondents under age of 18 = 0 & over age of 56 = 1 MKTG 652 Drexel University

  16. 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 MKTG 652 Drexel University

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  18. 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. MKTG 652 Drexel University

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  20. 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. MKTG 652 Drexel University

  21. Note : Number of retired respondents = 1 MKTG 652 Drexel University

  22. 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. MKTG 652 Drexel University

  23. Note : Number of respondents from ‘other’ background = 1 MKTG 652 Drexel University

  24. 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 MKTG 652 Drexel University

  25. 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 MKTG 652 Drexel University

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  29. 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 MKTG 652 Drexel University

  30. 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 MKTG 652 Drexel University

  31. 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 MKTG 652 Drexel University

  32. 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 MKTG 652 Drexel University

  33. Conclusion • An executable idea – ‘Tea House’ • Accepted by the market • Further analysis required for specific aspects MKTG 652 Drexel University

  34. Thank You!!! Questions? MKTG 652 Drexel University

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