Content

MA
RK
ETI
NG
RE
SE
AR
CH
RE
PO
RT
SM
AR

Page | 1
Background................................................................................................................ 4
Product Information.................................................................................................... 5
About the Company.................................................................................................... 6
Market Research......................................................................................................... 6
Decision making context......................................................................................... 6
Market trends in Mysore.......................................................................................... 6
Research Objectives................................................................................................ 7
Research Purpose.................................................................................................... 7
Research Questions................................................................................................. 8
Hypothesis.............................................................................................................. 8
Research users:....................................................................................................... 8
Research Boundary:................................................................................................. 8
Sampling Plan.......................................................................................................... 8
Data Analysis Methods............................................................................................ 8
IRP Table..................................................................................................................... 9
Survey Results and Inferences.................................................................................10
Question 1............................................................................................................. 10
Inferences............................................................................................................. 10
Question 2............................................................................................................. 11
Inferences............................................................................................................. 11
Question 3............................................................................................................. 12
Inferences............................................................................................................. 12
Question 4............................................................................................................. 13
Inferences............................................................................................................. 13
Question 5............................................................................................................. 14
Inferences............................................................................................................. 14
Question 6............................................................................................................. 15
Inferences............................................................................................................. 15
Question 7............................................................................................................. 16
Inferences............................................................................................................. 16
Question 8............................................................................................................. 17
Inferences............................................................................................................. 17

Page | 2
 Question 9............................................................................................................. 18
Inferences............................................................................................................. 18
Question 10........................................................................................................... 19
Inferences............................................................................................................. 19
Conclusions and Recommendations.........................................................................20
Limitations of the Market Research Study:...............................................................21
Learnings.................................................................................................................. 21
Questionnaire........................................................................................................... 22

Page | 3
Background
As with many foods which have been around for hundreds of years, coffee is one of the oldest and one
can argue it can be almost as old as civilizations. Drinking coffee was and has been in many regions
considered as a social activity. Right from the beginning in 17th century, coffee pots were used, then
evolution struck when someone poured hot water through sock containing ground coffee. That is how
coffee filters were accidentally introduced to the world.

Since then many different equipment were invented to enhance the taste as well as the quality of coffee.
Now in this modern era, the evolution has taken a very big leap and people are slowly and gradually
shredding the traditional ways of working.

In this regard, people have very quickly adopted the new technologies and internet of things. The
companies have rolled out many electronic gadgets for kitchen purposes and we find that now our
household is incomplete without these gadgets.

One such important gadget is a Coffee machine. It not only saves our time but also reduces our
dependency on traditional ways of using gas and creating smoke. Coffee machines have made our life so
easy and comfortable that we just cannot afford not to use them when brewing coffee. The convenience
factor and caffeine boost prevent most people from manual brewing. Some of the types of coffee machine
used are:

French Press: This type of coffeemaker requires that the coffee should be a coarser grind
compared to drip brew coffee filter. Finer coffee grounds will only seep through the press, then
into the brewed coffee. The brewing method of a French press works by placing coffee and water
altogether, stirring it and leaving it to brew for few minutes, and then by pressing the plunger,
trapping the grounds in the bottom of the beaker.
Percolator: The percolator design works by heating water in a boiling pot with a detachable lid,
heated water is pushed through in a metal tube and into a brew basket that contains the coffee.
Extracted liquids drain from brew basket and drip back into the coffee pot. The procedure is
continuously repeated in the brewing cycle up to the point when liquid flowing repeated through
the coffee grounds has already sufficiently steeped. The user will judge when coffee has already
reached the right color and strength by looking through the transparent knob on its lid.
Single Serve Coffee Maker: It is a coffee brewing method that prepares only exact or enough
coffee for a single person. Its brewing system lets a measured amount of heated water to go

Page | 4
 through the coffee pack or pod, producing a standardized cup of brewed coffee into a container
positioned under the outlet.
Drip Coffee Maker: In an automatic drip coffee machines, the measured volume of cold water is
poured into a separate chamber where a heating component heats water into near boiling. Hot
water is distributed over the coffee grounds in a metal or paper filter, through a device such as the
shower head. Then water seeps through the grounds, absorbing its essences and oils, and passes
through to the bottom of the coffee filter. Coffee grounds are kept filter while the coffee liquid
drips into a coffee pot. An individual can choose a drip coffee maker in a 4-12 cups capacity and
in different styles, colors, models and prices.

Further advancements has led to the development of machines controlled through smartphones. One such
example of smartphone controlled devices is Smarter Coffee machine. It lets you make a cup of coffee
remotely from anywhere in your home, using your smartphone or tablet app. This technology has been
created to listen to the consumer need for greater convenience and personalization of products.

Product Information
The Smarter Coffee Machine is a iphone or android smartphone powered coffee machine. Any individual
can make a coffee sitting in an arm chair. Everything in this automatic drip coffee maker can be controlled
with a few gentle smartphone gestures. The product comes with a lot of different uses and features. Some
of the product features are:

Control your coffee machine with your smartphone or tablet

Grind and brew fresh coffee beans automatically

Or use fresh pre-ground beans with the percolator

Easily adjust the strength of your coffee to suit your tastes (Strong, Medium or Weak)

Bean grind settings: Coarse >> Smooth

1.5 litre capacity with built-in water level sensor

Brew up to 12 cups at once using the Smarter Carafe

Page | 5
 Keep warm mode keeps your coffee warm for up to 40 minutes

Wake up and Welcome home modes/Timer

Choose from black, beige or red removable panels to match your kitchen decor

Easily readable 3.5" LCD screen with a simple user interface

About the Company

Smarter Applications Ltd is an award-winning London-based company at the forefront of inventive
solutions for a more connected life. It creates web - connected products which include a Wi-Fi kettle and
coffee machine are currently sold in over 1000 stores all over the UK and Europe.

They follow a determined vision of improving the lives of millions of around the world with the launch of
products that will save the everyday household money, time and energy.

By the end of 2017 Smarter expects to become a global connected platform, linking you to your kitchen
making grocery shopping and food waste a thing of the past.

Christian Lane, CEO of Smarter Applications Ltd, began the smart journey in 2013 with the launch of the
worlds first wi-fi connected kettle. His vision was to create a truly connected home that is accessible,
affordable and simply put. After the success of original ikettle they launched the smarter coffee machine
and ikettle 2.0 and expanded their distribution.

At present they have 23 no of staff, 27 no of countries along with 3000 outlets and amazingly 100000+
users.

Mission of the company: Mission is to make existing kitchen smart by connecting old appliances and
bringing them into connected world. Using smarter products, time and money will save along with
freedom to live outside the kitchen.

Market Research

Decision making context

Page | 6
The decision making context is to know should they go ahead in launching their product Smarter Coffee
Machine in Mysore.

Market trends in Mysore

There has been a growing trend of people of different ages from the four corners of the country, settling in
Mysore. The main reason for this growing trend is the job opportunities in multinational companies like
Infosys, Automotive axels, Skanray. The second reason for people settling in Mysore is that the city has
been a great retirement destination as well as the growing business opportunities in the city.

Mysore is a coffee loving city due to the availability of rich fresh coffee beans from the nearby town of
Coorg. Coffee works as a USP (Unique selling Proposition) for not only Mysore but many other popular
cities in Karnataka as Karnataka itself produces 71% i.e. 2.52 Lakh Metric Tons of the total coffee
production of the country. There has also been growing trend of coffee consumption due to the settling of
many corporate job goers. Mysore being a tier 2 city, it has access to online markets and big retail market
which consists of a wide variety of product range from various companies:

Prestige
Orpat
Kenstar
Maharaja
Bajaj
Philips
Hyundai
Pigeon

Research Objectives

The objectives of our market research are listed below:-

1. To seek maximum information about the consumer, i.e. to know consumers income range, their
location, buying behavior and then decide on the price of the different variants of the product.
2. To provide information to top level management for making objective, policies, plans and
strategies and forecast the future sales, business conditions and estimate the longevity of the
product in the market.
3. To investigate the psychology of consumers prior to purchasing the product or service as well as
market features such as price.

Research Purpose

Page | 7
The main purpose of the market research is to identify whether it is a viable option to introduce the
product for sale in Mysore or not. The product basically targets working women and the research is
initiated to cite potential customers and get a know-how regarding their expectations and the price bracket
as well as the variant of the product desired by them.

Research Questions

1. What are the existing competitors brands of coffee machine in Mysore?

2. Are working women living in Mysore aware of an application operated Coffee Machine?
3. Do Mysore consumers want to use such kind of product?
4. Is there a scope of Mysore working women to purchasing the product?
5. What needs of the consumers should be targeted in the marketing campaigns?
6. Which channel of marketing will be effective for working women in Mysore?
7. What are the challenges faced by the competitors faced in after sales service?

Hypothesis

Mysore consumers are aware of an application operated coffee machine.

Mysore working women are willing to pay for such an innovative coffee machine.

Research users:

The Company and its management will be biggest beneficiary of the research. Online retailers can also
use this research to make decisions.

Research Boundary:

The target is working women population living in the Mysore city.

Sampling Plan

100 working women (25 each from IT, Manufacturing, Food Courts and Bank Employees) aged between
20 and 50 years are identified for conducting the survey. Type of research will be exploratory. Likert scale
is used to measure qualitative information. The data will be collected by using questionnaire which
respondents will be asked to fill.

Data Analysis Methods

Page | 8
Bar graph analysis has been done to analyze the responses of the respondents. This will help us in making
sound decision with high confidence regarding the product launch.

Page | 9
IRP Table
SOURCE OF PRIMARY / RESPON- INFORMATION MEASUREMENT
INFORMATION SECONDARY DENTS APPROACH
IT Companies Primary 25 1. If they are Nominal
Employees willing to buy?
Manufacturing Primary 25 2. What price of Nominal
Companies the product they
Employees can pay?
Food Court Primary 25 3. Do they want Nominal
Employees to change their
Bank Employees Primary 25 Nominal
traditional
method of
coffee
consumption?
4. How many
brands of coffee
machine,
consumers are
aware of?
6. Are they
willing to buy
such an
innovative
product with a
new brand?

Page | 10
Survey Results and Inferences
Question 1

Do you use any application operated appliance in your

Dummy
kitchen?
Table
Total Women Women Women Women
Manufacturin Food
IT g Court Bank
Answer 100 25 25 25 25
Yes 14 11 0 0 3
No 77 14 25 25 22

Q1
80
70
60
50
40
30
20
10
0
Yes No

Inferences

It was found that awareness about application oriented device was very less among women from all
sectors of occupation. It might be because of the work culture, they might not be able to give time to
check out the functionality of this kind of cool stuff available in the market.

Page | 11
Question 2

Do you use any of these appliance to make coffee?

Dummy Table
Total Women Women Women Women
Manufacturin Food
IT g Court Bank
Answer 100 25 25 25 25

Electric Kettle 36 16 6 5 9
Gas Stove 100 25 25 25 25
Coffee maker
Machine 12 5 3 1 3

Q2
120

100

80

60

40

20

0
Electric Kettle Traditional Gas Coffee machine

Inferences

It was observed that 100% of the respondent were still dependent on traditional method of gas stove to
make a cup of coffee. And along with gas stove 36% of women were common in both electric kettle and
gas stove. The percentage was very less i.e. 12% for coffee maker and majority which came from IT
industry, it might be because of more no. of serving in an organization on daily basis.

Page | 12
Question 3

Are you aware of Smarter Coffee machine?

Dummy Table
Total Women Women Women Women
Manufacturin Food
IT g Court Bank
Answer 100 25 25 25 25
Yes
4 1 0 2 1
No 96 24 25 23 24

Q3
120

100

80

60

40

20

0
Yes No

Inferences

Visibility of smarter coffee machine was almost nil among the respondents which is very alarming or a
clear indication of need of higher investment in marketing and advertising. So that people get aware of
the company and the innovation which company use to make for them.

Page | 13
Question 4

How did you come across Smarter Coffee machine?

Dummy Table
Total Women Women Women Women
Manufacturin Food
IT g Court Bank
Answer 100 25 25 25 25

Print Media 0 0 0 0 0
Social Media 2 2 0 0 0
Internet Pop-ups 1 1 0 0 0
Word of Mouth 1 1 0 0 0

Q4
70
60
50
40
30
20
10
0
Print Media Social Media Internet Pop - ups Word - of - Mouth

Inferences

As it was observed in the previous question the presence of the smarter coffee machine was 4% which is
nothing to take into consideration and whoever responded in favor of the previous question came to know
about social media and internet pop-ups. Although, it will be very silly to make any conclusion out of
that but still we can figure it out now a days print-media as a channel for communication has become
obsolete so its better if we invest in social-media marketing.

Page | 14
Question 5

If given a choice, how likely do you think of

switching/buying an electric kettle which can be
operated using a smart phone?
Dummy Table
Total Women Women Women Women
Manufacturin Food
IT g Court Bank
Answer 100 25 25 25 25
Extremely Likely
33 16 5 3 9
Very Likely 8 4 1 0 3
Moderately Likely 39 4 8 18 9
Unlikely 20 1 11 4 8

Q5
45
40
35
30
25
20
15
10
5
0
Extremely Likely Very Likely Moderately Likely Unlikely

Inferences

There was a ambiguity in the responses between Extremely Likely and Moderately Likely which
shows a greater demand for smarter coffee machine. Almost 80% responded in favor of the same and we
can go for the launch of smarter coffee machine.

Page | 15
Question 6

How much are you willing to spend on such a product?

Dummy Table
Total Women Women Women Women
Manufacturin
IT g Food Court Bank
Answer 100 25 25 25 25
<3000
61 18 21 23 19
>3000 19 7 4 2 6

Q6
80
70
60
50
40
30
20
10
0
More than 3000 Less than 3000

Inferences

As we see form the above table, the respondents prefer value for money product. For an advance coffee
machine like Smarter Coffee Machine, people do not wish to shed out more than Rs 3000 so it is highly
advised for the company to highly focus on reducing the cost of production as well as maintaining the
quality and features in the product.

Page | 16
Question 7

Where do you buy your household appliances from?

Dummy Table
Total Women Women Women Women
Manufacturin Food
IT g Court Bank
Answer 100 25 25 25 25
Shopping Mall
22 6 8 4 4
Online E-retailers 15 6 2 1 6
Local Shops 21 5 7 6 5
Authorized Retailers 22 8 8 14 10

Q7
40
35
30
25
20
15
10
5
0
Shopping mall Online E-retailers Local Shops Authorized Retailers

Inferences

From the above table it can be inferred that the majority of the women have opted for Moderately Likely
option which signifies that putting rechargeable battery in the machine will not make a huge difference in
increasing the market potential of the product. Other than women working in the IT field, the other group
of women have not shown inclination towards this feature. It can be inferred that the putting rechargeable
option as a feature will not give significant sales advantage, users are fine with non-rechargeable battery
or direct plug in system.

Page | 17
Question 8

Would you like your machine to be powered by a

rechargeable battery?
Dummy Table
Total Women Women Women Women
Manufacturin Food
IT g Court Bank
Answer 100 25 25 25 25
Extremely Likely
18 9 1 3 6
Very Likely 14 3 4 2 5
Moderately Likely 56 13 15 17 11
Unlikely 12 0 5 3 3

Q8
60

50

40

30

20

10

0
Extremely Likely Very Likely Moderately Likely Unlikely

Inferences

From the above table it can be inferred that the majority of the women have opted for Moderately Likely
option which signifies that putting rechargeable battery in the machine will not make a huge difference in
increasing the market potential of the product. Other than women working in the IT field, the other group
of women have not shown inclination towards this feature. It can be inferred that the putting rechargeable
option as a feature will not give significant sales advantage, users are fine with non-rechargeable battery
or direct plug in system.

Page | 18
Question 9

Would you prefer to have a coffee bean grinding

feature in the machine?
Dummy Table
Total Women Women Women Women
Manufacturin Food
IT g Court Bank
Answer 100 25 25 25 25
Yes
79 22 17 22 18
No 21 3 8 3 7

Q9
90
80
70
60
50
40
30
20
10
0
Yes No

Inferences

It can be inferred from the above table that the preference towards coffee grinding function is every high.
The users would like to have a coffee grinding feature fitted and integrated with the coffee machine since
various types of coffee beans and coffee flavors can be enjoyed by the users if this feature is provided. It
is highly advised to integrate the feature in order to fulfill the demands of the customer.

Page | 19
Question 10

What is the maximum capacity (in terms of cups)

you prefer?
Dummy Table
Total Women Women Women Women
Manufacturin Food
IT g Court Bank
Answer 100 25 25 25 25

2 25 13 4 3 5
4 64 10 15 20 19
Others_ 11 2 6 2 1

Q10
70
60
50
40
30
20
10
0
2 4 Others

Inferences

As inferred from the above table, majority of the respondents have preferred option 2 i.e. maximum
coffee making quantity of 4 cups at one time. The demand for increased quantity is expected to be high
and it is advised to produce more numbers coffee machine with a quantity of 4 cups in orders to decrease
lead time towards supply of the product to end users and to cater the demands of the customers.

Page | 20
Conclusions and Recommendations
India is undergoing several fundamental shifts (economic, demographic, ambitions and
aspirations, economic activity hotspots. Household products market dynamics may be poised
for some fundamental shifts too, and are at a take-off point. Hence, the industry as a whole
should come together to invest in a very comprehensive, pan-India market and consumer
insights study and then use the findings to identify new trends, segments, and develop
specific strategies.
The survey also assessed the percentage of respondents who are aware that smartphones can
be used to operate home appliances. Among the regions population, awareness of the Coffee
maker machine is the lowest of all the household appliances.
E-channel can provide a much better medium for stocking of a much wider range and
actually much more effective product display.
The customers willingness to upgrade qualitatively, quantitatively, and pricewise is a
conundrum that needs to be researched and analyzed much more intensively.
Some product-usage based and channel-based segmentations could offer new opportunities to
stimulate domestic demand.
As per the response of the respondents, it can be determined that people prefer value for
money products as the respondents are not willing to pay a premium price i.e. more than
3000. It is highly advised that the product should be priced aggressively while the quality and
features are to be maintained.
The response also depicts that a lot of people are not aware of the product so it is
recommended to advertise through various channels like Social media, TV, Print media etc.
The company needs to create awareness among the people and project its USP among the
users that is application based product which a lot of people are unaware of.

Page | 21
Limitations of the Market Research Study:
The study was limited to only working women of Mysore. The results may
vary with the different segments of the population.
Effect of extraneous factors are not taken into account. (Effect of introduction
of new superior product, attractive offer of competitors, availability of
powerful substitutes, etc)
Sample size taken as well as time allotted to do the study was not sufficient
to come to a strong conclusion.
Rapidly changing markets and consumer behavior may make the results of
the study irrelevant.
Accuracy of the responses of the respondents is not guaranteed.
The results of the project do not solve a problem or indicate an opportunity
because of the reliability of the data which cannot be ascertained. The study
only provides suggestions not the solutions.
The respondents of the survey were all Humans, therefore certain biases may
affect the outcome of the study. Effect of personal value, prejudice, attitudes,
needs, and other socio-cultural factors may affect the objectivity of research
adversely.
The marketing surveys and reporting has been done by six people together,
therefore there working style, personality and thinking abilities will affect the
results.
This project report has limited practical value as it is only an academic
exercise. It is mainly based on a hypothetical approach. It gives theoretical
solutions. It does not give realistic solutions to real-life problems. Its solutions
look good on paper but are harder to implement in a real sense. Thus, it has a
limited practical value.
The market research was conducted by the researchers who are students and
are thus unqualified and unexperienced. Therefore the quality of the study
may be in question.

Learnings
Developing an effective questionnaire keeping in mind the research
objectives, research question, respondents, IRP table and research
hypothesis.
Understood the various steps involved in a Market research process.
Undertook desk research to uncover existing information. ( Critically
evaluated the literature relevant to the selected area of interest)
Developing an effective and structured reporting document.
Writing an effective research brief (Research objectives, Research questions,
Research Hypothesis, IRP table).
Identifying the problems and opportunities to explore to fulfill the objectives.

Page | 22
 Analyzing the data outputs.
Drawing conclusions and recommendations.

Page | 23
Questionnaire
1. Do you use any application operated appliance in your kitchen?
Yes
No
2. Do you use any of these appliance to make coffee?
Electric Kettle
Traditional Gas stove
Coffee maker machine
3. Are you aware of Smarter Coffee machine?
(If yes answer question 5, otherwise answer question 6)
Yes
No
4. How did you come across Smarter Coffee machine?
Print Media
Social Media
Internet Pop-ups
Word-of-mouth
5. If given a choice, how likely do you think of switching/buying an electric kettle which
can be operated using a smart phone? (if chosen unlikely only answer question 8
otherwise answer all)
Extremely Likely.
Very Likely
Moderately Likely
Unlikely
6. How much are you willing to spend on such a product?
More than 3000
Less than 3000
7. Where do you buy your household appliances from?
Shopping Mall
Online E-retailers
Local Shops
Authorized Retailers
8. Would you like your machine to be powered by a rechargeable battery?
Extremely Likely
Very Likely
Moderately Likely
Unlikely
9. Would you prefer to have a coffee bean grinding feature in the machine?
Yes

Page | 24
 No
10. What is the maximum capacity (in terms of cups) you prefer?
2
4
Others__

Page | 25