Coffee Product Development Marketing Research
Coffee Product Development Marketing Research
Edmar M. Toñacao
Southland College
2022
Abstract
The goal of this study was to conceptualize and design a coffee-drink based on the tastes,
predilections and desires of coffee consumers in Kabankalan. The objective of this study is to
create products for the customers based on their needs, create a value and present a unique type
of coffee to the public market. The product development process was made based on a
combination of customers’ data, trends, concepts, and ideas that can create a conceptual and
actual drink. Distribution of survey questionnaires through Google forms were provided to the
respondents in Kabankalan City. The study provides understanding and assistance for future
studies and coffee shop operations with the development of the product designed for the coffee
consumers' needs.
Coffee shops, similarly, offer people different kinds of products. One of them is a coffee-
based drink. People are visiting coffee shops for a warm or a cold beverage that ought to satisfy
them and fulfill their desires. They always buy different types of coffee that they want.
This project aims to discuss the existing consumer preferences for coffee and analyzing coffee
choices of people. We will combine customers preferences and tastes with creativity and will
create a "perfect cup" that could make them even happier.
This study will identify and analyze the attributes of coffee preferred by the coffee
consumers in Kabankalan City. The study will generate an understanding of how to create a
desirable product based on customers’ needs, how to properly produce coffee drinks and create
value for it.
The research's main goal is to satisfy the needs of the clients. The primary target point of the
research is to make a coffee drink based on the customers' needs and preferences. By means of
conducting a survey to coffee consumers and coffee shop-goers within the area of Kabankalan
City about their preferences in different aspects of coffee consumption to define common
predilections. The data collected will be utilized to create a unique type of coffee drink that will
be patronized by the general coffee consumers and satisfy every client.
Having a business is a complex entity that necessitates a vast array of skills, experiences,
and aspirations. It necessitates getting to know the clients who will be purchasing your future
products. As a result, we can see that there is a need to study and research how to build a product
that meets the wants of clients.
The information gathered will serve as a foundation for the creation and development of
products for customers. This study will result in the development of a new coffee product that
will be available in Kabankalan soon.
Moreover, this research will serve as an instrument for creating new coffee drinks or for
establishing a coffee shop that offers a unique taste of coffee different from coffee shops in
Kabankalan.
The study has few aims to be done. First and foremost, it is vital to comprehend the clients'
coffee preferences and analyze their coffee choices. Understanding this point will aid in the
proper specification and creation of a product.
Second, the study aims to identify the most popular drinks in order to develop market-ready
products. People have similar tastes. It will be easier to design products that the majority desires
and to succeed in the current market if these factors are identified.
Finally, and maybe most crucially, is a target point for increasing sales, expanding the
business, and developing items that meet the needs of customers.
The delimitations of the study are the issues that affected the research. These issues include
health protocols that need to be followed caused by COVID-19, the respondents are only within
the area of Kabankalan City, and the making of coffee and finding its ingredients.
The study used a survey method by distributing questionnaires through Google forms. The
survey questionnaires were provided to coffee consumers in the area of Kabankalan City which
includes a variety of questions to help identify popular flavors and preferences.
Collection and analysis of data are from primary sources which are the coffee consumers and
coffee shop goers. The survey will provide a wide range of information about the market and
creation of products.
1.5 Data Gathering
Eleven questions regarding their coffee preferences will be used to collect data for future
product development. This questionnaire begins with a fundamental interest about coffee's future
prospects and progresses to more detailed questions regarding preferred coffee tastes and flavors.
Caffeine is the first thing that comes to mind when you think about coffee. Coffee is a
beloved beverage known for its ability to fine-tune your focus and boost your energy levels. In
addition to its energizing effects, coffee has been linked to a long list of potential health benefits,
giving you all the more reason to get brewing. Some research suggests that drinking coffee could
help protect against Alzheimer’s disease, Parkinson’s disease, and cognitive decline. Coffee
could help support weight management and may be linked to decreased body fat. One study also
found that people who consumed coffee were more likely to be physically active.
Kabankalan City is a first-class component city in the province of Negros Occidental in the
Philippines. Nowadays, people in Kabankalan City are very fond of coffee and virtually
everyone in the city drinks it at various ages. Hence, Kabankalan City has numerous coffee
shops and cafes that people love to visit, such as Kape Centrale, Hallel Cafe, Riverside Cafe and
so on. Coffee consumers adore coffee for a variety of reasons. For many people, coffee is the
first beverage consumed in the morning and can be relied upon for energy to help them get
through the day. For some, the smell and taste of coffee are comforting. For sleep deprived
people, having a cup of their favorite brew can help them feel more relaxed and ready to be
productive. If the weather is rainy and the temperature is cold, having a hot cup of coffee can be
the ultimate remedy to warm the soul. If the weather is hot, there is an available option of having
your favorite coffee drink iced.
● RTD drinks
The rapidly changing world also influences people's wants when it comes to their coffee
preference. Nowadays they want a coffee that is ready as soon as possible. One reason why RTD
(“ready to drink” coffee) could skyrocket in 2020 is the fall in popularity of soft drinks. It is
probably not a coincidence that canned or bottled ready-to-drink iced coffee is gaining popularity
at a time when there are less carbonated soft drinks, including caffeinated cola, RTDs will create
distinct product options as well as will become a tool for supporting and developing the brand.
A company that wishes to stay successful and maintain its market share must update its offering
on a regular basis. Updating the offer comprises a number of measures aimed at the creation of
new items, such as refining existing products, producing new ones, and expanding the range of
products available.
The development of a new product cannot be carried out without marketing research, since it
minimizes the risks of market failure. Subsequently, marketing research is a systematic and
objective identification, collection, analysis, dissemination, and use of information to improve
efficiency, identify and solve marketing problems. It makes it possible to clarify the current
situation in the external environment, to draw the structure of satisfaction of needs in a certain
territory.
In the modern world, the creation and production of new products are crucial for the
prosperity of a company. Consumers want and expect innovative and improved products.
Competitors will do their best to provide them with these innovations. (Gluck, 2012.)
Consequently, each firm should have its program for the development of new products, directed
towards the future, and considering such a property of products as “mortality”, which means
leaving the market after a certain time.
The further life of the product is not possible without this beginning. The stage of strategy
preparation takes place with simultaneous market research and analysis.
Market research includes information about customers and competitors. Here, both
qualitative and quantitative analysis can be used to generate data. Any sources are in use to find
additional information: websites, social media, trade press, open-source information from
partners, opinions of influencers and opinion leaders, experts, books for product management.
Some market research methods such as A / B testing, customer analysis, customer interviews,
focus group, etc. will also be useful. In further research, we will implement a questionnaire.
Strategies are aimed at nourishing the welfare of stakeholders and achieving goals. It should
provide a clear understanding of the product's values for all team members.
The product strategy is the foundation of its life cycle. If it is valuable to shape a dependable
and effective strategy for your product, have responsiveness to ideas, objectives, concepts, and
ingenuities. (Gluck, 2012. ) A product vision consists of market opportunity research, positioning
issues, target audience, competitor analysis, etc. It describes the needs of the customers and how
you plan to meet their needs.
Product goals must be clear, relevant, measurable, and time-specific. They can help product
managers establish what they want to achieve in a specific time frame. Product ideas and
initiatives are efforts that need to be implemented in order to achieve strategic goals.
When working with a strategy, today you cannot do it without the help of professional
services and tools. The roadmap, for example, visualizes all product ideas and initiatives and
helps to share them with team members and all stakeholders.
In the development of packaging design, there is a place for both creative and consumer ideas, as
this is a high-tech process. The work on creating brands is always done with high quality and on
time because there are a clear sequence and interconnection of work.
The design has a unique meaning and gives the product a certain value. The value lies in its
emotional and psychological content. The brand has one more feature, it has something that
cannot be touched, but it can be bought by purchasing a product. You can gain self-confidence,
feel strong and beautiful, independent, and caring. A brand is a kind of reputation that
accumulates through product sales, advertising, and marketing throughout its life in the
marketplace.
The supply of new, diverse, and high-tech products from different manufacturers is growing, and
the competition between them is increasing. The reaction to changes and novelties of one
manufacturer on the part of others is quite fast.
With the growth of standardization, product packaging assumes a special role, serving as a
carrier of specific features and, often, the only source of information about a product.
In enterprises, where the marketing department is small, the creation of packaging is still carried
out with a predominance of the role of production. The inherent love of manufacturers with their
products makes them concentrate mainly on technological improvement. Before the buyer can
appreciate the properties of the product, he must notice and select it.
A manufacturer calls a designer and relies on his imagination and creative flight, while the
marketing and sales departments are assigned only the task of promoting products. If serious
flaws in packaging design led to a decrease in sales, it is much easier for production to
"overlook" this or explain the technical or financial impossibility of change.
There are also times when a company redoubles its efforts to find optimal display opportunities
in a store, saturating the shelves with in-store advertising, not realizing that the root of the
problem lies precisely in the packaging design. With a weak design, the more products in the
line, the more difficult it is to provide an effective display. (Oliva, & Kallenberg, 2003)
UCD responds to questions about users and their goals and objectives, then uses the results to
make development and design decisions. As an example of UCD perspectives, essential elements
of a UCD are considerations of: (Blank 2013.)
Visibility
Visibility helps the user build a mental model of the product. Models help the user predict the
effects of their actions while using the product. Users should be able to tell from a glance what
they can and cannot do with the product.
Availability
Users should be able to use the product quickly and easily. Users need to be offered different
ways to access the item. If the product is approachable then it is easier for customers to use it.
Definition
The product should be easy to use: Through analysis of the rhetorical situation, the designer
should be able to determine a useful style and concept. Decorative with an attractive and catchy
outlook.
The listed factors make it possible to form a basic model of consumer behavior: customers will
choose the most useful and personally interesting product for him, limiting himself to a price
barrier (Blank, S. 2013.). As a rule, the consumer will buy what is most useful and interesting for
him, but if he is limited in funds, the consumer will buy only one product or the next one in the
scale of plurality, but affordable for him.
2. Search
Under the influence of the inducement, the buyer begins to collect information about the product.
Foundations of data can be private connections and profitmaking informers. (Cole 2011.) The
buyer can be informed over mass media. The consumer can advise himself from side to side of
pragmatic experience. The primary sources of data for the consumer are recommendations
from friends or family members, followed by commercial informants, and if the first category
convinces the buyer that the data is true, then the second simply provides information. Once data
collected, the consumer matches quite a few products by alignment and merely after making a
choice.
3. Assessment
The collected information is used by the consumer to create a model of behavior, which will
ultimately lead to a final decision (Oliva & Kallenberg 2003.) Therefore, the seller or
manufacturer needs to understand how the buyer collects information, evaluates it, and plans. A
product for a consumer is not just an object, but a set of characteristics. Clients will have faith in
altered individualities when selecting because different societies may have different
requirements.
4. Decision making
After collecting and evaluating all the options, the consumer, forms a kind of hierarchy from the
most desirable product to the least, but at this stage, his choice can still be influenced by the
following factors:
● the opinion of strangers
● unseen circumstances.
5. Acquisition response
Consumer behavior does not end at the buying stage. The shopper may be able to respond to his
obtaining in dissimilar ways. Customers are weather pleased or unhappy. It is important to know
that satisfaction is formed based on personal ideas and the real properties of the product. (Cole.
2011.)
The choice is the best combination of goods (or consumer set) of all possible mixtures that bring
the most utility to the buyer (Oliva & Kallenberg 2003). Marketing research has established that
psychological and social factors have a significant impact on the behavior of buyers and the
pricing policy of an enterprise.
Working with needs is the backbone of a business, no matter what the company does. Some
entrepreneurs relieve purchasers from the “acute pain” by creating “pill” products. Others work
with less severe problems by selling "vitamins." However, they all fulfill the client's wishes.
Discount promotions, like other promotional messages, will not be effective until they cover
needs. Therefore, they need to be determined even before the product is developed, and not
during the implementation of the marketing strategy, as is often the case. In the sales cycle,
solving problems is easier than stimulating interest in unnecessary products. Revealing motives
helps to improve the return on advertising campaigns and make the product in demand.
In that case. It is crucial to study the types of needs and then determine which ones will push the
person to buy. Scientist A. Maslow in the middle of the XX the century divided the needs into
levels. At the base of the pyramid, he created physical needs, and at the top is self-expression.
The hierarchy can be criticized, but the value of this theory to the marketer is a list of motives
that can be used to drive sales.
Figure 3 Maslow hierarchy of needs (McLeod, 2020)
The easiest way to reach the client is by targeting basic needs: most pain points are concentrated
on the first two levels. (Kimbell 2010.) It is helpful to highlight the associated needs that help
make the checks rise. For example, when you buy an iPhone, you choose a protective glass and
case. You can also divide people's desires into explicit and hidden. Identifying unconscious
needs is a difficult process, but there can be a gold mine hidden behind them.
People do not always realize that there may be something that will improve their lives. Questions
about their desires take them by surprise. Therefore, you will not learn about the needs of a
potential target audience if you do not carry out analytical work to determine them.
It analyses both latent and explicit, perceived needs. Clients order services not for our services.
(Kimbell L. 2010.) For example, smartphones are no longer just a means of making a call. This
happened because the manufacturers of push-button phones dug deeper, finding additional needs
that could be covered by technology.
It is also necessary for sellers to identify needs because this is the only way to reach a person in a
live conversation. (Kimbell 2010.) One product may be in demand among people with opposite
values.
The search for the deep motives of potential customers must be divided into stages that
complement each other, excluding erroneous conclusions. The correct assessment of desires is
instantly reflected in sales.
It is necessary to identify them step by step:
1. Observation. It is important to spend a few days with a potential target audience to see what
these people are guided to on a daily basis. This allows you can find out their real problems and
explore related interests.
3. Verification, which involves working directly with people when you ask questions to confirm
or refute a point of view. In parallel, at this stage, you need to find out additional facts to clarify
the available data.
Revealing the needs of the client is carried out with one goal - to lead him to purchase. There is
no point in looking for information about statistics. ( Kristensson, & Gustafsson & Archer, T.,
2004) The task is to collect data to modify a product or service for the interests of the target
audience, expand the product line, and highlight the benefits. If in the recap process the business
shows that it can get rid of all the problems, another sale will close.
The researchers have analyzed the preferences and favorites of coffee consumers in Kabankalan
City. Overall, we have got one hundred responses and all of them will help to create a special
coffee product. The questionnaire contains 11 questions and were formulated in order to collect
information from customers about their coffee preferences.
5.1 Research results
The first and introducing question was about the most important part of the coffee product’s
consumption. By asking, what kind of ready-made coffee product consumers will put their eye
on, it will play a crucial role in further analysis.
As results state, 75.5% of customers are up to drinking coffee with milk foam, as an example, it
could be a latte, etc. 9.8% of customers are up to drinking regular, plain black coffee what shows
the meaningfulness of that kind of drink on the market. Moreover, 14.7% of clients are into
drinking coffee-based cocktails and it is obvious as people in Kabankalan are better to stick to
something familiar as well as trying some twists and alternatives.
Question 2: Would you like your coffee to be hot or cold?
As we can, mainly, serve hot or cold products, it was crucial to ask this question. Currently, in
the coffee serving industry, customers are divided into two groups. The first group visit coffee
shops for hot and warm drinks, whereas the second group is coming for cold and fresh drinks
like Cold brew, Frappuccino, etc.
To define future drinks development, this question was raised to see what Kabankalan coffee
consumers drink and what kind of coffee drink will suit them.
Question 3: What kind of plant-based milk do you prefer?
As we can see, 78.4%% preferred using normal milk as a base for coffee drinks. 8.8% of clients
were choosing coconut milk and 7.8% were up to drinking actual milk. The remaining
percentage is for those who choses nothing.
The question above was asking customers about their wish about adding extra flavors, and
consequently, question 6 is asking consumers about the exact flavor. This graph shows a
significant amount of answers. They all are good and delicious but in order to satisfy everyone,
caramel got 71.6%, vanilla flavors got 18.6% and 9.8% nothing.
Question 7: Choose the most exotic flavor for your coffee.
An exotic flavor is something that has not been consumed by customers before. This question
had 4 options to choose from as well as the “Nothing” option where people do not want to add
any exotic flavor to their coffee. As the chart shows, 36.3% are willing to try “Milo” and the
second one is into trying “Yakult". 8.8% of them want to try "Coke". While 32.4% of them do
not want to try exotic coffee flavors.
Colors are something that motivates customers for using a product. This question has been asked
for observing the interest in colorful drinks. As a result, 67.6% of consumers are not willing to
drink colorful drinks and 32.4% are not sure about colors. Accordingly, we can drop away from
the concept of colored drinks and put attention on something more valuable.
Question 9: Please, specify the color if your answer was YES
From the,67.6% of “YES” customers have been deciding on the color, nearly 14.7% of them
have chosen caramel as a color of their drink. Some of them mentioned pink,blue,red and natural
color.
Question 11: Would you try drinks based on your answers above?
All the above-mentioned questions were asked to find out what could be done with a product for
customers’ satisfaction. Analysis of current preferences of coffee consumers in Kabankalan City
has made a strong base for creativity and productization. 96.1% of responses are happy to try
special drinks, which shows the interest of customers to try specially made products. The
remaining 3.9% is divided to No and Maybe.
REFERENCE
https://www.homegrounds.co/coffee-trends/