Designing a survey project

1. INDUSTRY SUMMARY –
a. Provide a one paragraph summary of your assigned company’s industry
and identify competitors. Include relevant background information (e.g., brand,
company, industry, competitors). Is there a history or are there events that have led
to a problem?
Based in Maryland, Honest Tea operates as a bottled organic tea business which was started in
1998 by Barry Nalebuff and Seth Goldman while they were still in college. Currently, the
company is wholly owned by Coca-Cola (MacBride). Sugary drinks have been receiving
opposition from the United States, as the government has been increasing taxes while insisting
that the beverages must have warning labels. Also, people seem to be drifting away from such
drinks, according to the CDC, Soda intake has reduced by 39% since early 2000 due to people
worrying about the high rates of obesity which have been rising for the past 30 years. This is
where Honest Tea wanted to tap its market, as it has been pushing to sell low-sugar beverages
for more than 15 years, and now it is worth 160 million dollars as a Coca-Cola subsidiary. Its
main competitors are GT’s Kombucha, Guayaki, and Runa. The company set its foot on the
healthy organic tea market and has expanded to produce more products which include kids’
drinks, zero-calorie sodas, summer refreshers and tea leaves used for home brewing
(MacBride). The market has seen the company grow at a healthy rate, as sales increased by 20%
in 2014, and it has also made other brands like the Honest Kids. The sale of the kids brand rose
by 37% between 2013 and 2014. Such sales have boosted the main company’s revenue, and it
seems like Honest Tea will soon be its backbone (MacBride). Initially, people were skeptical
about the company merging with a big organization, but it was a perfect move as it now uses
Coca-Cola’s distribution network which has seen the products being put on the shelves of more
than 100,000 departmental stores in the United States alone, and other stores in Europe.

2. IDENTIFY THE MANAGEMENT DECISION PROBLEM

a. TOPIC: In one sentence, identify the management decision problem
you think your team should focus on (frame your problem as a question, and
use bold font)
Should Honest Tea expand its market into the coffee market?
b. Provide background evidence to support your choice. Consider the following
question
i. The management problem is usually broad, action-oriented, and identifies
symptoms (e.g., loss of market share/sales). What issue should a manager focus on?
Should he/she change a marketing mix element (e.g., price increase, new product
introduction, change promotion strategy, etc.)? What? How? What is your overall
objective? (Remember too, that this is a marketing research class so avoid topics
that focus on technical product development issues or financial topics).Although tea is a very lucrative business, Honest Tea should expand into the
coffee market which is the most consumed beverage in developed countries such as
the United States and European countries. Its popularity is also growing in China
and India, which. The manager should focus on creating a plan to develop coffee
products that align with the “Honest” brand. The manager should adapt to the
change in “Product” of the marketing mix. Instead of focusing on tea-centric
products that align that Honest’s existing product line. The manager should look
into introducing new products such as coffee. In other words, because management
wants to take action on launching a new coffee product for the Honest brand.
Therefore, they should study the specific kinds of coffee products they would like to
produce. Such as coffee, cold brew, pods, cappuccinos, and espressos. For Honest
to gauge what product introduction will best align with their brand. As well as what
product will be popular with new and existing customers.

3. IDENTIFY A MARKETING RESEARCH PROBLEM

a. The marketing research problem is more specific, information-oriented, and
examines underlying causes (e.g., consumer preferences). Be as specific as you
can with your topic. Vague topics or topics that are too broad will not serve you well.
What information is needed to solve the problem or answer the management
research problem? How can the information be obtained? What key questions will
you address? List 3-5 key questions in a bulleted format.
In order to solve the management research problem, Honest Tea needs to figure out; if they can
incorporate their healthy, great-tasting, organic mission statement into their next product, coffee.
Coffee is a massive industry that revolves around the world. I believe the best way to obtain
information on whether if Honest Tea should or shouldn’t incorporate a coffee product in their
product line, is by doing a blind test. A blind test could work by gathering obtaining a number of
participants to get blindfolded, and try 2-3 different types of coffee; Honest Teas coffee being
one of them. See if their coffee is preferred over other brands, if not, a new coffee must be
developed and implemented into the blind test, which hopefully, the participants like more.
Another way Honest Tea can solve their target problem is by developing a coffee k-cup pod
along with their ground coffee, in order to expand their target market and be in coffee drive-thru
and in your home. This information can be obtained through surveys and interviews, either can
be direct face-to-face or an online survey that takes 30 seconds of your time.
● If Honest Tea developed a new coffee product, would it grow and be
wanted by the consumers of coffee in an already highly competitive
market?
● Is Honest Tea able to incorporate their great-tasting, healthy, and organic
mission statement into their coffee?
● Will Honest Tea be able to produce and sell coffee at an exponentially
growing rate with constant affordable prices?
● How will Honest Teas coffee stand out compared to their competitors?

4. IDENTIFY THE RESEARCH DESIGN -a. Create a research design (e.g., framework) the addresses the research
problems/questions you have described above. Use the six components outlined in
your text (chapter 4, page 70) to guide your thinking. We haven’t yet covered all of
these topics (i.e., measurement and scaling; sampling process and sample size),
but you can attempt to briefly address them here.
1. Define the information needed.
2. Design the exploratory, descriptive, and/or causal phases of the research. Will you
use all three types of research?
a. Will you use qualitative or quantitative research? What specific research
procedure will you use (e.g.., focus groups? interviews? survey? experimental? etc.)?
Why? What is your rationale for using your selected approach? Clearly explain why you
chose a specific method (based on what we have learned in class).
Part 1-The information we need are insights and understanding on what will help Honest create
the best tasting and organic coffee. To make the product taste great and also how to source
organic coffee. We also need information that answers our hypotheses on thinking Honest’s
brand of organic and great tasting coffee in the market will be wanted. It will help give us a
better understanding of who our target is and what they are looking for in their coffee products.
Part 2-For our research it will be necessary for us to utilize exploratory, descriptive and causal
research. Exploratory research will give us an opportunity to discover new ideas and insights on
creating the perfect Honest coffee. We will collect data from secondary sources to understand
the trends in the coffee industry and see where the market will be in the future. It will also be
critical for us to utilize qualitative research. To gain and collect information on factors that
consumers consider to be important in their coffee. The descriptive research will help us better
define market characteristics. Honest will learn insights on how to develop a precise approach
to the problem. Some specific methods of descriptive research we plan to use are surveys and
observation. We will use studies for new product concept analysis. Understand the reasons why
people like and dislike coffee. For observation, we want to see people in a natural environment.
Such as when they are ordering and tasting their coffee. To get a better understanding of the
whole consumer experience of drinking and tasting coffee. Casual research gives us an
understanding of cause-effect relationships between variables. For example, does a variable of
“organic” affect the way people perceive Honest coffee as being more healthy than others on
the market? These are all essential aspects of research that are needed. In order Honest to
have precise information. To help them best define and answer their research problems. Honest
is known for tea. Expanding into the coffee market is a significant risk that could potentially pay
off big. Only if Honest introduces a product that aligns with there core brand and is unique from
other coffee options.
3. Address the measurement and scaling procedures.
For the measurement procedures, we will make sure the research measures perceptions rather
than preferences. Because the information sought compared to the info generated can vary. Wewill also scale the data by collecting the information gathered from surveys and group the data
into factors and rate their importance based on consumer responses.
4. What will the questionnaire (e.g., interviewing form) be like? What topics and questions will
be addressed?
● What is your favorite type of coffee and what do you like to add to your coffee?
● How much are you willing to pay for a cup of coffee, ground coffee, k-cup coffee pods?
● Do you prefer to make your own cup of coffee or have it made for you at a restaurant or
drive-thru (Dutch Bros, Starbucks, etc.)?
● What kind of coffee do you usually drink and why?
● At what price do you consider that perfect price for coffee? (depending on size (12oz,
16oz, 20oz), buy vs. make)
● What favor do you like? (vanilla, cinnamon, brown sugar)
● Will you consider trying organic coffee?
5. Consider the sampling process and sample size.
It would be effective to incorporate several different sample sizes in different locations to get
each environment and demographic area accounted for. Sample size will be depending on the
population and amount of coffee drinkers in the area.
6. Develop a plan of data analysis.
Develop a BCG matrix and perceptual map to consider all opportunities in the products lifetime.
Moreover, give consumers a chance to try our product and encourage them to answer our
research questions by holding some promotion activities.