Marketing Research: A new Business Opportunity

Executive Summary

One of the growing markets in global business is the snacks and food market. This study attempts to evaluate market opportunity for a new Indian snack bar in Milwaukee downtown. Most of the restaurants in Milwaukee offer various food varieties (for Breakfast, lunch, dinner) and snacks. Few fast food centers sell snacks as their primary business in Milwaukee.
This paper discusses the design and approach in conducting the marketing research for a new business opportunity in Milwaukee downtown. The report starts with the problem background, environmental context, representing a Management Decision problem, Management research problem followed by research questions and hypothesis. The primary data collection method is through depth interviews and expert surveys. The secondary source of information is collected from the internet database, references from the report from US department of Agriculture and articles published in the internet. To save time and money exploratory research design technique is used. Finally, the research report elaborates on the scope of the report. The marketing management team can take advantage from the output of the research (or with further research) for the planning and further can provide input to the strategic management team to set the strategy for the Snack Bar business.

Introduction and Background to the problem

The united states Department of Agriculture (2003) reports that as societies modernize, people are forced to adopt hectic lifestyle that make them indulge in snacks between meals. The report also states that the snack consumption increases drastically over the time. The aim is to identify the opportunity and capitalize the cultural changes like lifestyle for a new business opportunity. However, the pursuit of new business entails extensive research, preparation and capacity building in each step. So setting the strategy for the new Snack bar would be a challenge, which requires an extensive marketing research.
The report first discusses the general characteristics and type of Milwaukee consumers who are more appreciative of the snack food products. Second the competitors or the firms doing similar business in Milwaukee. Third, the report explains the specific preferences of the consumers and the report identifies some part of entry strategy that would work in Milwaukee.

Environmental Context
General Characteristics and Type of Milwaukee Consumers
Discussions with the industry experts, articles published by the industry experts and internet are the sources of data for this part of the report.

Race and Ethnicity in Milwaukee (Wikipedia)

|Ethnicity |Milwaukee % |Milwaukee Count |
|White |43.6% |219,891 |
|Black |39.5% |223,775 |
|Native Americas |0.8% |235 |
|Asian |3.6% |19,854 |
|Other Race |7.3% |48,514 |
|Two or More Race |2.1% |11,565 |
|Hispanic |14.9% |80,945 |

General opinion would be more of the Asians (Indians) would be interested in the Indian snack or they are the target consumers for the business. Dinesh Sanghavi, who is an entrepreneur, owns his family business an Indian grocery store in Milwaukee. He had mentioned in his interview to Business Journal Milwaukee that his store has a very good response from the public. He also mentioned that 50% of his customers are non-Indians.
When people get to know more about other cultures, they tend to try new food. In fact, “Food is part of the Culture”. With the business revolution, work environments become diversified and so people share their cultural thoughts at the workplace that influence people to try different cultural foods. Because of the increasing Indian contributions in the IT sector, it is more obvious that people share the Indian culture in workplace. This also causes an increasing demand for Indian variety food and snacks among the other ethnicity.

Age
Population data by age, legal ages, 2005 data
18 years and over: 394,792 (70.88%)
21 years and over: 368,499 (66.16%)
62 years and over: 61,496 (11.04%)
65 years and over: 52,060 (9.35%)
Household Data, 2005 data
Householder: 235,242 (42.24%)
Spouse: 66,396 (11.92%)
Child: 177,581 (31.88%)
Other relatives: 39,760 (7.14%)
Unmarried partner: 17,403 (3.12%)

In Milwaukee, downtown is the primary business hub where a number of employees commute daily from suburbs for work. The major companies with IT sectors are City Offices, North Western Mutual, Rockwell automation, Miller, Johnson Controls, US Bank, Compuware, Metawante, Assurant, and Journal Sentinental etc.
Indian based consulting companies like HP, Infosys, Wipro, Accenture etc, has huge presence in Milwaukee as they contract IT consultants from India for a short/long period to many companies that have active offshore operations. These consultants would love to see their home in their new home. In addition, people prefer to eat outside food rather than try out their culinary skills during their short trips. (Age ranging 25 and over)
The other sector of people would be the students who study in schools in downtown MSOE, MATC, UWM etc. Downtown also has a number of attractions where families visit more often over the weekend.

Weather conditions
Milwaukee is a cold place and the winter/snow stretches for months. During winter employees prefer easy accessibility for the food centers. Whereas in summer employees take small breaks in the afternoon and go for a small walk. Therefore, the challenge in setting up the snack bar would be the accessibility and the type of snack offered based on the climatic changes.

Characteristics of Indian Community
Based on the statistics from the public network the Milwaukee Indian community has 950 members with varied interest. Most of the members are interested in meeting people and want to make new friends. Networking within the community usually happens in two major places. One is the temple which is 25 miles away from downtown and a pub in Chicago for which they have to travel 80 miles. Members of the community also organize get to gathers and potluck in the downtown area for easy accessibility.

Competitors
There is a snack place “Bombay Sweets” available 12 miles away from the Downtown. The major product sold there is sweets and there is a limited variety of salty snack available in the shop. Because of the limited business, “Bombay Sweets” uses more frozen products to cut cost. Moreover, Bombay Sweets cannot entertain huge crowd because of the demographic constraint.
|Competitors |Accessibility |Price |Varieties |Time |
| |(Miles) | | | |
|Bombay Sweets |12 |$7 - $10 |Sweets. Limited Salty, |11 AM – 9 PM |
| | | |spicy snacks | |
|Maharaja Restaurant |In downtown |$10 - $12 |Very Limited |Lunch 11 AM- 3 PM |
| | | | |Dinner 6 PM – 10 PM |
| | | | |Snacks 4PM – 6 PM |
|Mayura Restaurant |In downtown |$10 - $12 |Very Limited |Lunch 11 AM- 3 PM |
| | | | |Dinner 6 PM – 10 PM |
| | | | |Snacks 4PM – 6 PM |

(A study needs to be conducted on non-Indian competitors for a better understanding)
Approach to The Problem

Snacking behavior provides fertile ground for examining situational influence in another culture to determine whether situational analysis is useful. The study method should focus on the procedure to characterize each snack product in terms of its suitability for every situational factor. The research also should focus on consumer demand and consumer spending. Several studies show that consumers spend more on snacks and promotions contributing a shift in consumption that salty snack food are healthy, nutritious and high-energy alternatives. The study also should focus on consumer relationship and lowering product and marketing cost.

Management Decision Problem
Should we start an Indian Snack Bar in Milwaukee Downtown? What kind of a strategy would make us succeed or attract more customers to the snack bar?

Management Research Problem
Determine the target customers for the snack bar.
What are the Snack preferences of the customers?
What are the other preferences/facilities customers expect in the snack bar?

Verbal Model
Consumers first get attracted or aware of the new Snack Bar. Experience the quality/taste of the snack offered in the bar. Eat their preferred snack and enjoy the other facilities available in the snack bar. If the customers like the Snack bar more and consume more that would increase the business profit.
Graphical Model

Research Questions & Hypothesis 1. RQ: Which ethnicity would be the customers for the snack bar? a. Indians b. Non-Indians 2. RQ: What age group would be the customers for the snack bar? a. 15 and Below b. 15-25 c. 25 And Above 3. RQ: Who are the direct/indirect customers for the snack bar? a. Employees working in downtown b. Family c. Students 4. RQ: What are the snack preferences of the costumers? a. Sweet b. Salty & Medium Spicy c. Very Spicy 5. RQ: What would people prefer to eat in the summer? a. Sweet b. Spicy/Hot & Hot beverages c. Cold Beverages 6. RQ: What would people prefer to eat in winter? a. Sweet b. Spicy/Hot & Hot beverages c. Cold Beverages 7. RQ: What time people would come to the snack bar? a. Morning 9-12 b. Noon 12- 3 c. Noon 3 – 6 d. Night 6-9 8. RQ: Would people prefer to have entertainment in the snack bar? a. TV b. Games c. Internet 9. RQ: Would customers be interested in meeting the people in Snack bar? a. Like to meet b. Don’t Like to Meet 10. RQ: What is the price range customers would prefer? a. $3 - $7 b. $7 - $12 c. $12 And Above 11. RQ: What are the possible ways to make the customers aware of the new snack bar? a. Advertisement b. Fliers c. Word of mouth

Research Design
Exploratory research design technique is used to get the insights for the launch of new snack bar in Milwaukee downtown. Depth interviews and Expert surveys are conducted to collect the primary data. Informal open-ended questions are asked in the interviews. Formulated the questions based on the developed Research questions and Hypothesis.
Sample questions asked directly/indirectly during the interview
What kind of food you like?
Do you like eating snacks? If no why?
What time do you prefer eating snacks?
How much are you spending on the snacks?
What kind of snacks you prefer? North Indian or South Indian, Sweet or Salty
Do you like meeting people/making new friends in food centers?
Do you like eating snacks when you watch TV or games?
Do you like ordering snacks online?
Do you like eating snacks in between when you play games?

Questioner Preparation for the survey:
The Questioner should elicit an understanding of situational factors that affect snacking behavior and snacks that Milwaukee consumers chose to satisfy their snack needs. The major situational factors are:
Determine snacks are consumed at home or away from home
Determine snacks are consumed in the morning or in the evening
Consumers eat snacks alone or prefer eating with others
The questioner also should identify the type of snack food consumers will prefer. Identify ten popular verities of snack and allow the consumer to choose his/her favorite.

Questioner prepared for the survey:
1) Where do you prefer to consume more snacks? a) Home b) Office c) Food center d) Others

2) When will you prefer to consume snacks? a) Before 11 AM b) 11-AM – 3 PM c) 3PM – 6 PM d) 6PM – 9 PM

3) Do you prefer to eat snacks with others (tick) Yes ___ No___
4) Do you prefer? a) North Indian Snack b) South Indian Snack c) Both/ Indian d) Other
5) Choose your favorites a) Vada b) Dosa c) Sweets d) Spicy rice snacks e) Idli f) Coffee g) Tea h) Cold beverages i) Pori j) Kachori k) Bonda l) Halwa m) Others Specify ____________________________________
6) Do you prefer eating snacks while a) Browsing b) watching TV c) Playing games d) Others _______
7) How much do you like to spend for snacks? a) Below $4 b) $4 - $7 c) $7 - $10 d) $ 10 and Above
8) Do you like buying snacks online? Yes__ No__ Sometimes___

Data Collection and Analysis
Depth interviews were conducted with various people differ in (ethnicity, age) demographics and geographic. Face to face and telephonic interview techniques are used to collect the data. The interviews conducted for an average of 15-20 minutes. Some of the interviews extended to 45 minutes long. Quick telephonic surveys were also conducted with the questioner.
Research Findings (Major percentage of people preferences)
| |Place |Time |Price |Summer Snack |Winter Snack |Buy Online |Meet People |
|Students |Food center |Mixed |$4 - $7 |Spicy/Salty |Spicy/Salty |No |Yes |
| | |Weekends | | | | | |
|Family |Food center/ |6PM – 9PM |$4 - $7 |Sweets/ Salty |Salty/Cold |Yes (for home |Want to conduct|
| |home |Weekends | | | |parties) |mini parties |

Interesting comments came out during interview and survey:
A number of consumers prefer fresh quality food, discounts, someone said he likes “Chat with a Chat”, want to try blend varieties from Indian and other culture snacks, prefer to have pool, prefer to eat snacks while watching cricket match/games. Family people want a game place so their kids can play and can spend more time in the snack bar. Students and Singles like to meet new people and want to make new friends. Girls like it as a hangout place. Employees want a drive through facility and delivery to office facility. Very few people want to browse internet in the snack bar. People who travel regularly from other states (few days in a week) prefer having deals with snack bar.

Conclusion
From the research output, it is apparent that there is a wide scope for the launch new snack bar in the Milwaukee downtown. Few challenges would be to find a place accessible to both employees and students; maintenance cost of online system, product cost controlled within $4 - $7, recreation area planning with TV and game place. The brand name and marketing can be achieved by creating awareness in public network community, temple and in other gathering places. Also, the marketing team can meet people in different business offices and can create awareness about the new Snack bar. The name for the snack bar can be something like “Chat with a Chat which would be attractive”. From the research output it is also obvious that weekends may not be that busy because very few people prefer to come to the snack bar during weekends.

Limitations, Recommendation and Further Research
The investment and maintenance cost would be a major limitation in this project. Research was conducted with a very few samples due to the time and cost constraint. The research scope needs to be expanded and should be conducted with more samples for added accuracy. A descriptive research also should be conducted before setting the strategy.

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Awareness of the quality/taste of the Snack

Snack Preferences

Enjoy the other Preferences with Snacks

Profit/Success to the Business

Attract Customers