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Marketing Research: JavaJoy company growth

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Scenario:

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.

Task needing assistance

Details: 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.

Part One - Group Deliverable

Post new questions that would be needed to take on the international market.

The group should 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.

Agree as a team to 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 - Individual Portion

Your 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.

Objective: Examine different types of marketing research and their appropriate use.
Use effective communication techniques.
Use team and problem-solving skills to collaborate on a project.
Define different types of data.

**This is mainly an individual task and unfortunately within a virtual environment (such as this task) there is not collaboration amongst group members. Yet, the assistance that I am needing is The area of determine the problem/opportunity definition that clearly articulates the issues and appropriately covers the scope of the project (the associated list of questions). A list of questions were compiled for both the tea brewing and coffee brewing systems which the company is wishing to gather recommendations on expanding into the international market. It is my opinion that the opportunity(ies) would rest within increasing ones target market/profit potentional by transitioning into this market. However, the problem area - that is where I am needing assistance. As I am unclear in that aspect as it kind of mirrors the gaps/diffulites you may encounter. I am looking for assistance if you may!!! I have attached my list of questions for assistance.

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Solution Summary

The solution addresses the barriers and threats to international expansion plans.

Solution Preview

The problem area consists of Hank's need to strategically identify barriers and threats to an international expansion. I think you've done a good job of compiling a list of questions that cover some of the potential problems ...

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