The document provides a market research report for a new coffee shop called the One World Cafe. It summarizes the results of primary research including questionnaires and focus groups of students at a local college. It finds that most respondents would visit the cafe and prefer to buy coffee drinks like cappuccinos and lattes. For food, most would buy sandwiches, paninis, and cakes. Comfortable chairs, wifi, and sofas were seen as most important features. The research provides guidance on pricing, products, and facilities to attract customers.

1. Market Research for
One World Café
By
A-level Business Students
at
Oldham Sixth Form College

2. To: The Project Managers of the One World Café Project.
From: Business Studies students from Oldham Sixth Form College
Date:3rd
July 213
Title: Market Research Findings for the One World Cafe
Terms of reference
This is a report contains market research findings for the One World Cafe. The market research has
been conducted by A Level Business Studies students from Oldham Sixth Form College.
Firstly the primary research includes questionnaires that were conducted on people in and out of the
college of their views of the coffee shop and if they would go to it. The second part of the primary
research includes the focus group. The focus group included 2 groups also from in and out of college
a range of questions were asked to gain qualitative responses. The secondary research conducted
utilised information from a variety of sources including government statistics websites and competitor
information.
Primary Research
Q.1 Howoften do you buy coffee (from a coffee shop) in a week?
The pie chart shows that 74% of the people would buy coffee at least once a week and 26% would
never buy coffee. A large percentage of the people buy coffee at least once a week,this information
could benefit the coffee shop as it will help the shop when buying furniture for the cafe as it will tell
you how much seating you will need, and it also helps to identify the level of staff required.
26%
27%
23%
10%
6%
3%5%
Percentage of people
Never
Once a week
Twice a week
Three times
Four times
Five times
More

3. Q.2 The one world coffee shop is opening in November. Would you go visit it?
Looking at the pie chart it tells you that 71% of the people we asked would visit the One World Café
at least once. This could be an opportunity for the business to promote the café,making sure that the
café is well furnished and the atmosphere is good. These answers indicated that the business is likely
to have demand.
Q.3 Which type of coffee do you buy?
The pie chart tells you people buy different types of coffees however the pie chart tells you that 31%
of people would buy cappuccino and 27 % would buy lattes. This means that when the café open they
should have more of cappuccino and latte available for the public. The quality of all the coffees is
very important in every coffee shop because people will come back for the same coffee if it has a
good quality it taste good.
71%
29%
Percentage of people
Yes
No
19%
27%
31%
23%
Percentage of people
Americano
Latte
Cappuccinio
Mocha

4. Q.4 Howmuch would you be prepared to pay for a regular version ofthe following coffees?
i)
ii)
iii)
iiii)
59%
40%
1%
Americano
£1.70
£2.00
£2.30
54%
42%
4%
Latte
£2.00
£2.20
£2.40
56%
41%
3%
Cappuccino
£2.00
£2.20
£2.40
63%
30%
7%
Mocha
£2.10
£2.30
£2.50
This shows 59% of the people surveyed would pay
£1.70 but only 40% of the people surveyed would be
willing to pay £2.00 and no one surveyed would pay
£2.30 for an Americano coffee. So the price for an
Americano coffee could be between £1.70 and £2.00
For a Latte most would also be willing to pay
£1.70 for the coffee however more people would
be willing to pay higher for it as there are more
people willing to pay £2.30 and just under half the
people would pay £2.20 so the price for this
coffee could be £2.20
Like the latte this coffee also seems popular but
less people are willing to pay £2.20 or £2.40 but it
is more popular than the Americano since people
are still willing to pay higher for it but since latte
is more popular the price for this could be £2.00
People are not really willing to pay more than
£2.10 for a mocha coffee however some people are
willing to pay higher. The price of the Mocha
should be £2.10 this is because the majority of
people would be willing to pay this price and a
higher price could lead to a loss in customers.

5. Q.5 Would you buy any of the following drinks at the coffee shop?
(In the above question respondents were allowed to select more than one option)
These graphs show the findings from the research.
44% of the respondents said that they would very likely buy a smoothie and 33% said that they
wouldn’t likely buy a smoothie. This shows that there isn’t huge difference between who would buy
smoothies and who wouldn’t. Therefore it might not be worthwhile having smoothies available all
year round, it could be just a seasonal drink that is available in summer. Also if smoothies were
available all year round then there would be extra cost to find fruit that is not in season in the winter
time.
39% of the respondents said they would very likely buy water from the coffee shop and 50 % say they
would not likely buy water from the coffee shop. Figures showing that more people would not buy
water would suggest that water should be only available in small quantities for the odd customers who
want water. Due to water having a long shelf life this means that it could be available all year round.
66% of respondents said they would very likely buy soft drinks and 22% said they wouldn’t likely
buy soft drinks. This shows that the vast majority would want to buy soft drinks which like water
;have long shelf life so can be available all year round and not just at specific times of the year.
63% of respondents said that they would very likely buy milkshakes and 28% said they wouldn’t. The
demand for milkshakes is high; this means it would be beneficial to stock them all year round due to
the 63% of respondents wanting milkshakes. Unlike the smoothies where there is only a small
difference between who would buy smoothies and who wouldn’t hence only having them seasonally.

6. Q. 6. Would you buy any of the following food products at the coffee shop? (Tick all that
apply)
88% of the people surveyed said they would buy Panini’s or would maybe buy them. 86% of the
people surveyed said they would either buy toasties or maybe buy them and also 89% of the people
surveyed said they would either buy or maybe buy sandwiches and cakes. This tells the café that it
should stock a lot these as people will be buying these products.
As only 62% of people said they may or will buy soup from the people surveyed and 38% said they
would not buy soup this means a few people would be buying soup in the coffee shop and so you will
need to think if you would want to sell soup or not and if you do you could sell them on certain days,
also soup may be seasonal and since it is hot not a lot of people would be thinking of buying during
summer and so when winter comes they may decide to put soup back on more regularly and to see if
more people decide to buy soup.
91% of people said they will or might buy chocolate of the people surveyed and 78% of the people
surveyed said they would or maybe buy biscuits. 77% of the people surveyed said they would buy or
maybe buy crisps. Also since crisps, biscuits and chocolates have a longer shelf life and are usually

7. impulse buys which means people buy it when they see it and do not plan on buying it so the coffee
shop should put these near the tills. Also they could buy a lot at the same time (cheaper since it’s in
bulks) and will just sell them at a steady pace.
In conclusion there is demand for cakes,toasties, sandwiches and Panini’s since most of the people
surveyed said they would be buying them. The soup is one, you should discuss and see if you want to
sell it as most people surveyed said they wouldn’t buy it so you should decide if you want to serve it
during winter or keep it during summer as well however only once or twice a week. The biscuits,
crisps and chocolate should also be in stock as these will sell steadily but you shouldn’t buy too much
at once since you might not be able to sell them all before there expiry date and may just be wasting
money.

8. Q.7 What time ofthe day would you use the coffee shop?
These results show us that most people will visit the coffee shop in either the afternoon or morning
with the afternoon percentage being 41% and the morning being 38%. Less people stated they would
use the coffee shop in the evening at a percentage of 21%
A similar number of people chose morning and afternoon. This thereby indicates that the coffee shop
should open in the early morning and close in the late afternoon when most people are likely to visit.
This would maximise sales and mean the shop would not be open during quiet times where costs such
as electricity could mount up with no revenue to pay for them.
38%
41%
21%
Time of day
Morning
Afternoon
Evening

9. Q. 8 Which of the following features are important to you?
(Respondents were allowed to select more than one option)
The Comfortable Chairs are the feature which came out as the most important factor from the
questionnaires with those asked scoring the most important. As linked with our secondary research,
successfulcoffee shops in the near area all have areas with comfortable chairs. This could be ideal to
providing a relaxed atmosphere which is vital for survival and for success.
The second and third most important features came out to be Wi-Fi and Sofas, with both attracting
over 70% of those asked. Having access to Wi-Fi may be more popular among the younger people.
Furthermore, given the location of the coffee shop behind Oldham Sixth Form College, having Wi-Fi
could be key at keeping people in the shop and also encouraging them to return. Also, The high
popularity of sofas could be to help create a relaxed atmosphere in a coffee shop where people can sit
and socialise. The use of Sofas could also serve well to keep people in the shop for a longer period of
time.
The feature treated with the least importance with the most ranking it as not important was having
televisions. All other successfullocal coffee shops do not have televisions. They could actually prove
to be a distraction and not very much wanted by the public. Sudden loud noises can be not very
attractive to customers and does not contribute to the relaxed environment a coffee shop seems to
produce. Not having a television in the shop may prove necessary.
Almost half of the people who partook in the questionnaire decided that they thought fair trade
products were very important however only around 10% less believed it was not very important to
have fair trade products, with a large amount of people being in the middle. Having fair trade products
can be beneficial as some customers will only eat/drink fair trade products which can generate sales
for the coffee shop. Although fair trade products will be more costly to buy for the business it will be
ethical and could attract more customers.
Just under half of the people who answered the questionnaire believed having background music was
very important with around 45 people being in the middle. A small number of 20 people said
background music was not desirable. However,having back ground music can help to create the
relaxed atmosphere of a coffee shop, of course with the correct choice of music. However to some it
may be off-putting.
0
20
40
60
80
100
120
Not
important
Middle
Very
important

10. Q. 9 Howwould you prefer to find out about the coffee shop?
27% of the people who took part in our questionnaire said they would prefer to find out about the
coffee shop via posters. Posters can be a very effective method of advertisement as they can reach out
to a large number of people however we must take into account the cost of this form of advertisement
so early in the life of the business.
Just over half of the people said they would prefer to be told about the coffee shop via internet
methods, 24% said they would prefer Twitter, 18% said Facebook and 11% said E-mail which was
the least favourite. Advertising by Social media sites is very effective especially for the coffee shop
because it is totally free and can reach out to an extremely large market.
Around 1/6 of the people who answered the questionnaire said they would like to find out via leaflets.
Leaflets are a way of directly getting to the public however they can just ignore them and also the cost
of designing and purchasing leaflets can be quite high where there is a chance they could just be
ignored.
24%
18%
11%
20%
27%
Percentage of people
Twitter
Facebook
Email
Leaflets
Posters

11. Q.10 Which of the following would you prefer?
69% of the people who answered the questionnaire chose they would like the option to both eat in and
take away. Allowing people to take away as well as eat in can attract more customers who would
rather just buy a product and leave. It will widen the market for the coffee shops if we gave both eat in
and take away option.
8%
23%
69%
Percentage of people
Take away
Eat in
Both

12. Focus group
The Focus Groups for One World Café
In order to gain a range of ideas from market research for One World Café as well as from the
questionnaires, two focus groups took place. One group being college students and the second being a
group of members of the church all from a different range of backgrounds.
Market
The research that came from the focus groups showed that the public and students would be interested
in trying a new coffee shop located behind Oldham Sixth Form College. It was said that as long as
sufficient advertising was used to create awareness of the location of the café then customers should
flow into the café.
When asked what they thought would keep them going to a particular coffee shop, those who took
part thought that the quality of the coffee and other services must be high but at a reasonable price.
The problem that came up often was that for example Costa coffee has a high quality range of good
but the prices are unreasonable and if prices were low at One World Café customers would visit it
instead. cleanliness was a large impact of whether they visited the coffee shop just the once or
whether they became loyal customers. Also friendly and approachable staff is a must have from the
focus group, as each person wanted to feel at ease in the cafe and with staff that are polite and
friendly.
In addition, the atmosphere was mentioned and in order to be agreeable, the older focus group felt as
though if background music was to be played it shouldn’t be too loud as this can become a nuisance
whist trying to enjoy a relaxing drink with friends.
Another idea that was extremely welcomed by the group was a suspended coffee system. The aim is
that a customer will be able to purchase a sandwich, drink or snack item which will be kept aside so
that when someone who is homeless went into the coffee shop they would be able to pick up the
suspended item free of charge.
Price
With the members of the church there was mixed views on the pricing of a regular coffee however
the majority agreed between £1.00 and £1.50. The students came up with the idea of pricing coffee’s
as follows Small- £1.10, Medium- £1.50, Large-£1.99.
Opening time ideas
At the focus group the research found that if possible, the One World Café could become a popular
place in order to meet for work related meetings, particularly in the late morning/ lunch time.
However as the working day on average doesn’t end until around 5 o’clock meetings throughout the
day could be possible and so should open until late afternoon/early evening. The focus group from
the church said that they would like for students to access the café also and so early opening from
8:00 or 8:30 would be a good idea to attract customers in the form of students before the college day
beings. The student focus group showed that the students would use the coffee shop at lunchtimes,
breaks and in frees as they would like somewhere else to do work as well as social with friends.

13. Food ideas
The research showed that food would be a great area to draw money in to the business with the focus
groups identifying that they would like to have the option to purchase a limited arrange of food. With
examples of toasted sandwiches and Panini's, cold sandwich, crisps and other snacks. Also the groups
decided that they would like the option to purchase soup during cold weather and that they thought it
would be a good idea for those on diets as it’s cheap and tasty but low in calories. Also the option to
take away warm and cold food was liked by the group.
Drawbacks
At the focus group it was found that if whilst at the One World Cafe there was swearing and other bad
language this would really put them off attending the coffee shop again and so the customer’s
attitudes should be monitored in order to not disrupt other customers. Another point was that if the
hygiene was poor they would not visit the coffee shop again. The customer service was also brought
up that the staff must be friendly and approachable for them to feelcomfortable in a coffee shop. The
student focus group found that if whilst at the One World Cafe it was crowded they would not want to
go as they would not have anywhere to sit and noisy, also if the price of the products where expensive
they would look for a cheaper alternative.
Drinks
Different flavors of coffee and different styles were poplar during the focus group as long as the
coffee was reasonably priced and of high quality. The option to be able to take away drinks was liked.
The students were very keen on the idea that a limited range of maybe milkshakes or smoothies could
be available, as long as prices were low.
Promotion
A few ideas came out of talking about promotional options. The main was that visible signage is
essential as from the road the church can sometimes not be seen and so a large sign will be needed to
draw in attention. The sign would also increase the market scope of the business as those who walk
past on the way into the center of Oldham could be draw in from the high quality and reasonable
pricing. Further more adverts in the Oldham Chronicle Newspaper can attract customers from all
over Oldham to experience the new coffee shop. The focus group from the church felt it was
important that the café looks just like a café and for the customers to know that it is separate from the
church which could make some customers feelmore comfortable and may open up the potential
market.
The students also gave examples of advertising by using leaflets, social networking sites (Twitter and
Facebook) and also Loyalty cards.
Aesthetics
Whilst discussing the aesthetics of the One World Café it was found that there would be a willing art
teacher who could help with the design and also an art group that already meets at the church would
be willing to produce work that could be displaced in the café and some of the work could potentially
be sold. Also the churches group decided that they would like the café to not look as though it was
part of the church and was a separate facility. Whilst discussing the aesthetics of the One World Café
with it was found they would be more drawn to the café if it was modern, and if possible would really
appreciate WIFI access.

14. Extras
In addition to the café being open to the public the café could also be open to the church on Sunday
mornings before and after services. The older focus group felt as though in some ways linking with
Halfords was a really good idea to draw in new customers. This would work as the actual workers
may benefit from the good food and drink available just across the road but also, whilst getting cars
fixed Halfords customers are often told to come back in an hour and with the café going to be literally
just across the road it would be convenient for the customers to have a high quality coffee from One
World Café. The students decided that they would prefer to order and pay at the till rather than have
their order taken as this can sometimes take longer to be served

15. Secondaryresearch
Market mapping can be used to identify One World Café’s position in the market and also it identifies
where competitors are in the market.
Market mapping would enable us to put The One World Café coffee shop in a desirable position, a
position where the products are of good quality and the prices are not expensive. The position would
be just above Coffee Republic or in the position Coffee Republic.
Thiswouldbe the desiredpositionas the
pricesare nottoo highand qualityof the
productsis good.

16. UK Hot Drinks market
The demand for Coffee never falls this is because over the years we have seen an increase in the sales
revenue for coffee this implies that the coffee serve to customers should be of a high standard. From
2013 – 2014 we expect an increase in the sales revenue of UK hot drinks.
Segmentation
Costa Coffee would be a competitor, because it offers good quality products, friendly staff and the
ambience is nice it makes you feel at home. Costa also has a stand based in college this means that
some costa products are easily accessible. The information above shows us the markets that Costa has
gained even though Costa products are mostly aimed at middle class and privileged class. However
people still use their money in costa even though its expensive this is because of the quality and it
feels like it is worth it. This would be useful to One World Café when planning what product would
be sold and how the environment would look like.

17. Product
Costa Coffee manages to advertise without spending money. This is because the brand name and logo
which plays a huge part about people knowing Costa from their friends and family. The One World
Café would need to have a strong advertising campaign in order to attract consumer attention and
make sure their brand is known.
Information gathered from -
http://rodenberg.nl/publications/publications/COSTA_COFFEE_vs_STARBUCKS.pdf
Price
The price of the products that One World Café sell would have to be within the range of the prices
Costa Coffee and the Independent coffee shops offer to its customers, this would mean that the
product One World sell would have to taste good as it would not be as cheap as independent coffee

18. shops. If the products sold are of a better value this would have an influence on the customers buying
habit positively because they are getting what is worth their money.
Information from menu and website - http://www.costa.co.uk/
Competitor analysis
The Coffee Lounge would also be a competitor; this means that the prices and products of One World
Café must be of a better value and should also offer something unique about their product and this
could add value to the café.
Information from in store menu
Rhode Island coffee

19. Rhode Island should also be considered as this would be a convenient place for people who are in
town to have coffee. Rhode Island has a good environment and is very welcoming to customers. The
products served there are similar to costa but they do serve some hot food as well.
Coffee machines in Oldham Sixth Form College
The college has severalcoffee machines which attracts students because they make good quality hot
drinks; at a very cheap price & easily accessible to them as it is in college buildings.
Information gathered from obtaining menu.

20. Recommendations
Product
From all the research collected the main products that came out of the information are that One World
Café should sell coffee and tea as well as smoothies and milkshakes. The smoothies and milkshakes
were mentioned both in the questionnaire and focus groups. The smoothies should be sold in the
summer time mainly as they are more likely to sell during the hot weather. Milkshakes should be sold
all year round as the data suggests that there is high demand for the milkshakes. The coffee and tea
available should be to a high quality but reasonable to compete against rivals to earn customers.
The food available at the café should be Panini’s, toasted sandwiches and cold sandwiches. Panini’s
and toasties should be available more in the winter as more people want to buy hot food in the winter
then the summer. Cold sandwiches should be available in the summer as more people would want to
eat cold food. Also people can take the sandwiches away for lunch.
Promotion
We recommend that when promoting. The One World Café the business should target different
segments with different promotional strategies. The business could promote One World Café to
college students through Twitter this is because the students all have twitter account and they access
their twitter accounts quite a lot everyday
One World Café could hand out flyers. The business could ask the members of the church to help
hand out flyers to the public. This will help promote the business and enhance their brand name. This
strategy is very effective because it’s cheap. The target market is big so by handing out flyers they
could attract about 40% of their target markets.
The main promotional strategy that was recommended when we were doing the focus group was
visible signage. From the road to the church the café can sometimes not be because of the trees in
front of the café therefore a large sign will be needed to draw in attention. This is a priceless strategy
to establish the brands name and gain new customers.
The business should also promote via placing posters in strategic areas. For example a poster pointing
where the café is that could be placed opposite Halfords this could attract students as well as
customers who are using Halfords. Another poster pointing where the café is could be put outside
Metro Station as a way of attracting commuters.
Price
The price should be reflective of the primary and secondary research. The focus groups had suggested
prices of coffee should be £1.10 for small, £1.50 for medium and £1.99 for large. £1.10 is the price of
a coffee in the college this means that the price would be equal however the college do not offer
medium and large drinks this would give One World Café a competitive advantage. Americano’s
would be purchased at the price of £1.70 by 59% of the people who took part in the questionnaire.
However 40% of the people would be willing to pay 2.00 this means that the price should be between

21. 1.70 - £2.00. The price of food should be at a reasonable price as mentioned in the focus group it
should be affordable and appealing as most people would purchase food with their hot drink.
Pricing decisions need to reflect market research findings. The questionnaire and secondary research
findings suggest that coffee should be priced between £1.70 - £2.00. The focus group indicated that
the price should range from £1.10 - £1.99. The owners need to consider costs related to coffee before
deciding the final price. Place
From all the research gathered the main areas that came out of the information on place is that, the
chairs in the One World Café must be comfortable and that WIFI is extremely important for the
students as they will use the internet for social networking site and checking email for college work.
Comfortable chairs are extremely important as they influence the atmosphere of the entire coffee
shop. Comfortable chairs will affect the amount time that the customers spend in the One World
Café. WIFI came out in both the primary and secondary research with it being extremely important in
affecting whether people will go to the One World Café. Therefor for the café to attract all customers
possible both comfortable chairs and WIFI should be accessible.