Market research is a crucial ingredient in the growth of an organization. It involves a systematic gathering, examining, and interpreting relevant facts to aid in making marketing decisions (Hague, 2002). In the case of JavaJoy Inc, the firm has struggled to succeed until the arrival of its growth opportunity. The firm must first conduct its SWOT analysis to establish whether it will be able to cope with the impending market growth. First, there is a need to identify what market share the company holds in the industry putting in mind that its products are relatively high, and then plan on how to maintain or improve the same. There is also a need to establish the needs of the consumer in the market and the infrastructure to be put in place to aid the firm against the competition.
Both qualitative and quantitative approaches can be used to carry out the research. A quantitative approach will help provide numerical information on the firm such as sales volumes, profit margin, distribution levels, and other quantifiable information. The method, according to Weinreich (n.d.), is more appropriate for the assessment of a large population as it gives quantifiable and more reliable data. However, it fails to capture human aspects in the market. On qualitative approach, data will be collected that show the meaning, perception, culture, and understanding people have on the companyâs products, and also their preferences.
Data will be collected through either one of, or a combination of interviews, market survey, observation, and field trials. Also, historical information in JavaJoy’s records will be used to gather more information to help in forecasting the company’s future. A survey will be conducted to establish the estimated market size, how many other players are in the industry and what are their sales, cost-effective distribution channels among the various channels available (whether to distribute directly to the consumers or continue with the current program), and the major threats (including competition) the company is likely to face. With the booming coffee market competition it is highly expected and this will be the best opportunity for JavaJoy to improve brewing systems quality. Thus, customers will be interviewed to establish their needs and what improvements can be made to the products. Also, a sample size of about one thousand people will be used for survey and field trials to collect both quantitative and qualitative data.
The data collected will be analyzed to assist in formulating the strategic plan for JavaJoy. The data on sales volume and the estimated market size will be analyzed using graphs to establish the trend and allow the formulation of expected sales volumes in the next five years. The data collected on other players’ statistics will help to understand what niche they have in the market, their profits, pricing, and their future plans. This will help in analyzing the level of current competition and any potential competition in the market, thus help in establishing the areas to focus on such as product re-branding, pricing levels (whether to lower the price or maintain the same), advertisement, and distribution channels (whether to continue with the current trend or open own distribution centers). Historical data in the firmâs records will be analyzed to gauge whether the firm has the strength to maintain the high profitability or whether the firm has the adequate labor force and other resources to cope with the huge growth in the market (Andreasen, 1995).
The qualitative data collected will be analyzed to help identify the gaps that the firm has to cover up before huge competition comes in. The tastes of the consumers, their lifestyle, culture, and purchasing patterns will help in formulating a plan that will target primarily satisfying the needs of the consumers in the market. This will also help to establish whether to increase the production capacity or maintain the same.
References
Andreasen AR (1995). Marketing Social Change. San Francisco: Jossey-Bass Publishers.
Hague, P. (2002). Market Research: A Guide to Planning, Methodology and Evaluation. 3rdEdition, New York, Kogan Page Publishers.
Weinreich, N. (n.d). Integrating Quantitative and Qualitative Methods in Social Marketing research. Web.