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    Marketing Research for JavaJoy's Approach to International Expansion

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    JavaJoy, Inc. was founded by Hank Sanchez in 1980. His vision was to elevate coffee to the epicurean level of fine wine. Hank's family had been in the coffee bean brokerage business for generations but he knew that even the finest and most carefully roasted coffee beans required an excellent brewing system to achieve a beverage with optimal flavor and aroma. He started JavaJoy to develop, manufacture and distribute high-end coffee brewing systems that would meet his exacting requirements.

    JavaJoy has two primary sales channels. They market directly to the medium and large restaurant chains that maintain technical staffs who specify equipment like brewers. Sales to smaller chains, independent restaurants and institutions are generally made through a network of kitchen equipment suppliers (KES) that tend to be regional in focus. The JavaJoy product line is very well known and highly respected in the industry but, due to its high price, Hank had only enjoyed limited success until the market for gourmet coffee drinks exploded in the 1990's. With this new market growth, Hank wants to recast his 5-year strategy to take advantage of the expanding market.

    You have been hired as JavaJoy's first Marketing Manager. You have questions about current market size, growth potential, buying habits, distribution channels, and competition, just to name a few. But you quickly realize that much of the existing market knowledge within JavaJoy is based on management experience and perception, which does not necessarily reflect the current reality of the booming market. You need to quickly sort out fact from opinion, determine how to clearly define the market(s) for beverage brewing equipment, and determine where these markets are heading so you can supply Hank with the information he needs to generate his revised strategy.

    It's clear that Hank wants the company to grow, but how can this be accomplished? What are the possible alternative approaches, and which is best? What growth can be anticipated? What are the threats to growth? Remember that the ultimate decisions concerning how to grow constitute strategic planning. Your job at this point is to provide accurate and timely information to support that strategic planning process. To provide the answers you have to begin asking questions, gathering data, and developing information.


    Hank is the kind of leader who gets a big new idea, seemingly all at once, and then galvanizes everyone around him into action on it. Hank has just finished reading the latest "best selling" marketing book and is convinced that JavaJoy should go international. Having no experience in any off-shore brewing equipment market, he has come to you for recommendations on how to proceed.

    Sort the questions into 3 to 5 general problem areas. Examples might be "Anticipated growth in coffee brewer sales", or "Trends in coffee drink consumption". All of the individual questions must fit into a topical area, but some might fit well into more than one area.

    State the problem/opportunity definition that clearly articulates the issue and appropriately covers the scope of the project (the associated list of detailed questions).

    Part two:

    You have volunteered to develop a presentation to Hank which includes the following:

    1. The selection you will now make of best research approach for this project.

    2. Your grouping of the detailed questions from Part One according to your chosen research technique.

    3. Your explanation of why you believe the specific technique to be the best choice.

    4. Your specification of what data you expect to gather.

    5. Any gaps or difficulties you expect to encounter.

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    Solution Preview

    Anticipated growth in coffee brewer sales
    What is the percentage yearly growth in brewer sales likely to be?
    What will be the country wise growth of brewer sales in the world?
    What will be the country with the highest brewer sales growth in the world?
    What will be the demand for JavaJoy's sales of brewers internationally?
    Trends in coffee drink consumption
    In which countries is the premium coffee drink consumption increasing?
    What is the demographic profile of the international coffee drink consumers?
    What are the areas where there is likely to be a demand for a perfectly brewed coffee?
    What are the countries where the premium coffee drink is untapped?
    The global markets where the demand for premium coffee is emerging.
    In which countries is there an increasing demand for premium coffee?
    In which countries is there a population with disposable income who may spend extra for well-brewed market?
    Which countries with a demand for coffee allow the import of coffee brewing machines?
    Which countries have a culture that values a well-brewed coffee?
    The potential international demand for coffee brewing machines.
    Which countries are likely to import JavaJoy's brewing machines?
    Which countries are having restaurants that will readily serve premium-brewed coffee?
    Which countries have channels of distribution that will readily sell coffee brewing machines?
    Which countries have currency rates that will make the export of coffee brewing machines to that country profitable?
    Which countries are likely to pay a price that would be profitable for Java Joy to export brewers to that country?
    The international competition for coffee brewers?
    Who are the international competitors for coffee brewers?
    What are the coffee brewers being sold internationally?
    What are the features internationally sold coffee brewers are offering?
    What is the price of internationally sold coffee brewers and what are their sales?
    What distribution outlets are being used for coffee brewers?

    Part two:

    You have volunteered to develop a presentation to Hank which includes the following:

    1. The selection you will now make of best ...

    Solution Summary

    In a 1314 word response, the solution first presents a list of questions or ideas about expansion followed by a paragraph or two in explanation of the five parts for the presentation listed in the case.