Market Analysis

1. Market Needs

An increasing demand for higher quality drinks is currently a rising trend in the food and
beverage industry. Besides, many customers also demand for unique and new café experience.

According to a survey by Senior Guide (2016), Japanese people aged from 50 to 64 have
pursued in English classes. In addition, more than 65% of the members of the English Dialog Club
website are seniors who registered for English conversation course. This indicates that many
elderly Japanese have taken an interest in learning a foreign language. Furthermore, most of
international students who are currently studying in Japan want to learn Japanese language.

For the market needs in Beppu, there are only a few numbers of cafés, so a demand for new
and unique cafés that can serve high quality products exists. Additionally, there are plenty of both
international students and elderly Japanese living here, therefore, a demand for learning languages
and cultural exchange is substantially high. With the combination of both factors, interactive café
is considered as a potential business in Beppu.

2. Market Segmentation

APU students and local people in Beppu will be our potential target groups. L’s English
Café and Bar will focus on people who want to get delicious drinks and mouthwatering pastries
during day time, and people who love alcoholic drinks which will be served at night. In addition,
with a relaxing atmosphere and being surrounded by interactive language learning environment,
we will be able to attract customers in all ages. These unique points will help us create a solid
customer base.

3. Consumer Buying Behaviors and Preferences

A majority of the population in Beppu are the elderly from 65 to 69 years old, as shown in
the Statistics of Beppu in 2017. In addition, there is a high ratio of international students here since
the establishment of APU. Both groups are our dominant target groups, however, their behaviors
and preferences may vary due to several factors.

According to Huysveld (2015), Japanese consumers generally tend to seek for new
products and services, and greatly demand for high quality. This could be applied to elderly
Japanese as well. They are also expected to pay higher for the products and services that have the
aforementioned attributes, especially the ones who have higher disposal income. On the other
hand, there may not be any specific behavioral patterns for international students due to cultural
differences.

As for international students, cultural and environmental factors seemingly play a

significant role in the buying behaviors. Thus, international students also tend to seek for new
products and services. Moreover, they are also willing to spend for products and services that have
roots or imported from their home countries.
 References

Huysveld, P. J. (2015, February 22). The Japanese Consumer Mindset. Retrieved from
https://www.linkedin.com/pulse/japanese-consumer-mindset-philippe-huysveld-ir-mba

株 式 会 社 イ ン プ レ ス . (2016, March 12). 「 50 ～ 64 歳 」 の 習 い 事 は 、 男 女 と も 「 英 語 」 が 1

位. Retrieved from https://seniorguide.jp/article/1001789.html

大 人 の 英 会 話 倶 楽 部 公 式 . (2017, May 21). シ ニ ア の 人 気 習 い 事 １ 位 は 英 会 話 学 習 .

Retrieved from https://www.english-dialogclub.com/blog/?p=4903

別府市統計書（平成 29 年版）. (2017). Retrieved from

https://www.city.beppu.oita.jp/sisei/toukei_housei/tokei_h29.html