Unit 22 – Market Research

A friend has heard that you are working as a research assistant

and has asked if you could assist them in with some market
research. Your friend is interested in setting up a mobile coffee
stall business. However, your friend knows that there is already a
lot of competition in the local area including form the big name
high street coffee chains. Your friend wants to make sure that they
stand out from the competition to help ensure a success. They
have asked if you can help by planning and undertaking market
research and analysing the results.

You are to conduct some market research for your friend’s business
idea. The purpose of the research is to obtain sufficient data to help
your friend launch their enterprise successfully.
 Unit 22 – Market Research

1. Planning a research project

P2 2. Choice of methods
& 3. Pilot research :
P3 • primary research: questionnaires
• secondary research

M2 4. Analyse the reasons for choosing particular research methods, the

type of data to be collected and the sampling plan.
5. Evaluate the effectiveness of the pilot research recommending
D2
changes that should be made to the final market research activity.
6. Undertake the final market research activity using a detailed
P4
sampling plan to obtain a range of secondary and primary data.
Unit 22 – Market Research

P2: Undertake secondary research for a

selected marketing objective

P3: Undertake pilot primary market

research and collect sample data
 P2,P3- Pilot research help!
Planning a research project
Defining the problem Include links and
Setting research objectives
Setting budget
screenshots as evidence for
Determining the data to be collected all your research and
Choice of methods
Pilot research: secondary research
results from primary
Internet sources.
Government websites
Competitor reports
At least 3 websites and 2
Pilot research: primary research primary methods
Questionnaire Observation Interview Focus groups
1. Type of questions • Explain the number of coffee • Explain the number of • Explain the number of
2. 1Sequencing
questionnaire 1 observation with
shops observed and why people interviewed and why 1 participants
focus group and why with
3. Length of your
with 10 questions
• Explain the information • 1 interview with 5
Explain the information • Explain the information
questionnaire 3 timeslots, 5 areas
observed and data collected asked and data collected 3asked
participants and
and data collected
4. Avoiding bias
andof10 why you have decided to questions is
5. Relevance questions to of focus is enough.
collect that particular
why you have decided to 5
and questions
why you have is decided
respondents
objectives is information enough.
collect thatYou must
particular to collect that particular
You must take information enough.
informationYou must
• take pictures andof the
6. Sampling plan • Explain the relevance of the
7. enough. you
Sampling size andmust
effect on pictures and create
information collected to the Explain the relevance • Explain the relevance of the
take pictures and
confidence levels objectives information
keep script collected
as to the information collected to the
take pictures, keep • tally table as
Explain the timeslots and days objectives keep script as
objectives
5 responses and in which you carried out the evidence
evidence
observation and why evidence
create tally table
 Planning a research project
Planning How can I do this?
Defining the • Why is the research needed?
problem • How will the research inform me and be relevant to the purpose and
objectives?
• How will the information that is collected help to solve the
problem?
Setting research The objective or objectives should be clearly set out so that everyone
objectives involved in the research has a point of reference and can focus on what
the desired end result needs to be. SMART objectives!
Determining the This should be a combination of primary and secondary research and
data to be qualitative and quantitative data. Explain which methods you are going
collected and to use and why.
methods to be used
Setting budget The amount of time and money will depend on how much work needs
to be carried out, which can only be determined once:
• The objectives have been written
• The data which are to be collected has been identified
• The methodology which is to be used has been chosen
 Planning a research project
Planning How can I do this?
Setting research The objective or objectives should be clearly set out so that everyone
objectives involved in the research has a point of reference and can focus on what
the desired end result needs to be. SMART objectives!

AIM
To stand out
from
competitors

Objective: Objective: Objective:

To identify the pricing strategies carried
out by the main 3 competitors in the
market through the use of the internet and
questionnaires in order to help my friend
set the prices for the coffee shop.
Conduct research by May 2023.
Choice of Methods

You have to consider the primary and

secondary methods you will use and
how much qualitative and/or
qualitative data will be collected.
 Introduction help!

The purpose of the following research is/This research is needed to…The data
collected will help inform my research by finding information about… this will
help to solve the problem presented…

The main aim of this research is… In order to meet this aim I have set 3
objectives, I will carried out the following primary and secondary research
methods…

The data collected will be qualitative, (give examples: feedback and additional
comments regarding customer preferences, secondary research…); and
quantitative, (give examples: population in the area, questionnaire key
findings…).

The estimated budget for this research, according to the objective and the
research methodology chosen is… (include information about the
resources/equipment needed, time slot, sample size, etc.).
Research methods
Primary Secondary
1. Questionnaire 1. Internet
2. Observation 2. Government websites
3. Interview 3. Competitors reports
4. Focus group

You must carry out at least 2 primary

methods (including questionnaire) and 2
secondary methods.
Secondary research
Internet:
• http://localstats.co.uk/census-demographics/england/london/redbrid
ge
• http://www.nomisweb.co.uk/reports/lmp/la/1946157275/printable.as
px
• https://www.statista.com/search/?q=Coffee
Government: Include links
• www.redbdridge.gov.uk and
• https://www.gov.uk/government/statistics screenshots
Competitors reports:
• https://www.whitbread.co.uk/~/media/Files/W/Whitbread/report-and
%20presentations/2018/fy18-results-briefing-presentation.pdf
• https://investor.starbucks.com/financial-data/annual-reports/default.a
spx
Primary research: Questionnaires

Questionnaire design:
1. Type of questions
2. Sequencing
3. Length of your questionnaire
4. Avoiding bias
5. Relevance of questions to objectives
6. Sampling plan
7. Sampling size and effect on confidence
levels
Primary research: Questionnaires

Questionnaire design:
1. Type of questions
• Open questions: used when a detailed answer with a full
explanation is required (used to obtain qualitative data)
• Closed questions: used when a one-word or direct answer is
required (used to obtain quantitative data)
• Proving questions: used to gather more information about
the initial or previous question.
• Funnel questioning: used to collect detailed information
about one point/topic. Most likely to be used in focus
groups.
Primary research: Questionnaires
“how many times a month do you
Questionnaire design: use your internet banking App?”
1. Type of questions “What services do you use the
most?”
• Open questions
• Closed questions "Are you happy with the service
• Proving questions from your bank?“
• Funnel questioning
“If no, can you explain the reasons
why?”

"What else do we need to do to

make this a success?"
Primary research: Questionnaires
Questionnaire design:
2.Sequencing
When you are designing your questionnaire you need to think
about the order in which you place the questions. The answers
given by the respondent are likely to be influenced by
previous questions:

Example 1, question 2:
respondents are more likely
to exclude food mixer from
their answers.
Primary research: Questionnaires
Questionnaire
design:
3. Length of your
questionnaire
4. Avoiding bias
5. Relevance of
questions to
objectives
 Primary research: Questionnaires
6. Sampling plan
Type of Explanation Advantages Disadvantages
sampling
Random When a list of names is Cost-effective and quick You may not get a
selected randomly from a to organise good representation
database of the population
Systemati When the first person to be It samples the population The interval chosen
c sampled is chosen and then evenly, good can impact the
every 4th, 5th or 6th person representation response rates
(you can choose the
interval)
Stratified The whole group is divided Ensures a representative Time consuming
into sub-groups (age, sample for each sub-
ethnicity, …) group
Cluster The sample is divided into Quick and easy Tendency for people
clusters, usually using in the same area to
geographical boundaries. have similar
Primary research: Questionnaires

Questionnaire design:
7. Sampling size and effect on confidence
levels
https://www.surveysystem.com/sscalc.htm

A larger example will bring back more

responses and is more likely to be accurate
than a smaller sample.
Consider the total population in the area
before deciding on the sampling size.
 You work for Ohso chocolate. It's healthier
You work for the council and you want to
than normal chocolate. You want to find
find out what sports people play, so you can
out if people would buy it, and how much
give money to the right sports.
they spend on chocolate.

You want to open a small music shop in

You want to open a new bowling alley in
town. You ask people about the music they
your area. Will it be successful? You have
like. You want to sell coffee and some
to ask people some questions to find out if
accessories too. What questions will you
it's worth opening.
ask people?
 1 questionnaire with 10
questions and 10
respondents is enough.
you must take pictures,
keep 5 responses and
create tally table

You must include 1 or 2 questions where

respondents are asked to rate something
from 1 to 10. this is very important to
complete your M3

Rate the following factors according to their

importance when choosing a coffee shop on a
scale of 1-10, 1 indicating not at
all important and 10 indicating
extremely important.
Price
1 2 3 4 5 6 7 8 9 10
Proximity
1 2 3 4 5 6 7 8 9 10
Coffee quality
1 2 3 4 5 6 7 8 9 10
Tally table
Question Answers
Q1. A. 3 A.
B. 2
C. 5
D. 0
Q2. A. 7 A.
B. 2
C. 0
D. 1
Q3. A- The most common answers for
B- option C were:
C- Open question Latte and espresso
 P3 help!

The following primary research methods will be carried out in order to meet the
purpose of the research…

Questionnaires
The data collected through this questionnaire will help inform my research by
finding information about…

The data collected will be qualitative, (give examples: what hot drinks do you
like…); and quantitative, (give examples: how many coffees do you drink a
day…).

The questionnaire has been carefully design to meet the purpose of this research.
The type of questions selected are (open/ended/proving questions)… sample has
been randomly/systematically selected and it will be carried out (place/days…).
The sampling size is…
 Primary research: Observation
• Number of customers in the coffee shop:
• 9.00
• 11.00
• 13.00

• Number of customers walking in the coffee shop – 30 min

• Average waiting time

• 9.00
• 11.00
• 13.00

• First 5 customers:
• How much they spend
• How many things they bought
 Primary research: Observation

• You must provide an initial proposal for your observation with

the areas of focus and timeslots
• You must provide observation records (tally table)
• You must provide evidence in the form of pictures

• Explain the number of coffee shops observed and why

• Explain the information observed and data collected why you
have decided to collect that particular information
• Explain the relevance of the information collected to the
objectives
• Explain the timeslots and days in which you carried out the
observation and why
 P3 help!
Observation

The observation was carried out in a local coffee shop named… Which I visited for
3 days and collected information at 9am, 11am and 1pm.
The data collected through this observation will help inform my research by
finding information about…

The data collected will be quantitative: (explain data and include your results)
• Number of customers in the coffee shop:
• 9.00
• 11.00
• 13.00
• Number of customers walking in the coffee shop – 30 min
• Average waiting time
• 9.00
• 11.00
• 13.00
• First 5 customers:
• How much they spend
• How many things they bought
 Primary research: Interview

• You must provide an initial plan or script of the questions to be

asked and why you have selected those questions
• You must provide a script of the interview containing all the
questions and answers
• You must provide evidence in the form of pictures

• Explain the number of people interviewed and why

• Explain the information asked and data collected why you have
decided to collect that particular information
• Explain the relevance of the information collected to the
objectives
 Primary research: Focus group

• You must provide an initial plan or script of the questions to be

asked and why you have selected those questions
• You must provide a script of the focus group containing all the
questions, answers and information shared
• You must provide evidence in the form of pictures

• Explain the number of participants and why

• Explain the information asked and data collected and why you
have decided to collect that particular information
• Explain the relevance of the information collected to the
objectives
Pilot research

Undertake a pilot research by testing out

your questionnaire with a small sample
to see what reaction you get. This will
help you identify possible changes to
your questionnaire depending on the
respondents'’ reaction and answers.
 P2,P3- Pilot research help!
Planning a research project
Defining the problem Include links and
Setting research objectives
Setting budget
screenshots as evidence for
Determining the data to be collected all your research and
Choice of methods
Pilot research: secondary research
results from primary
Internet sources.
Government websites
Competitor reports
At least 3 websites and 2
Pilot research: primary research primary methods
Questionnaire Observation Interview Focus groups
1. Type of questions • Explain the number of coffee • Explain the number of • Explain the number of
2. 1Sequencing
questionnaire 1 observation with
shops observed and why people interviewed and why 1 participants
focus group and why with
3. Length of your
with 10 questions
• Explain the information • 1 interview with 5
Explain the information • Explain the information
questionnaire 3 timeslots, 5 areas
observed and data collected asked and data collected 3asked
participants and
and data collected
4. Avoiding bias
andof10 why you have decided to questions is
5. Relevance questions to of focus is enough.
collect that particular
why you have decided to 5
and questions
why you have is decided
respondents
objectives is information enough.
collect thatYou must
particular to collect that particular
You must take information enough.
informationYou must
• take pictures andof the
6. Sampling plan • Explain the relevance of the
7. enough. you
Sampling size andmust
effect on pictures and create
information collected to the Explain the relevance • Explain the relevance of the
take pictures and
confidence levels objectives information
keep script collected
as to the information collected to the
take pictures, keep • tally table as
Explain the timeslots and days objectives keep script as
objectives
5 responses and in which you carried out the evidence
evidence
observation and why evidence
create tally table
 M2 & D2
M2: Analyse the reasons for choosing particular research
methods, the type of data to be collected and the sampling plan

D2: Evaluate the effectiveness of the pilot research recommending

changes that should be made to the final market research activity
You will then need to write a report in which you evaluate the
findings of your primary research and recommend changes that
should be made to the final market research activity. In your
evaluation you should think about:
 the appropriateness of the methods you have used
 the types and quality of data you have collected
 the effectiveness of your sampling plan
 M2: Analyse the reasons for choosing particular research
methods, the type of data to be collected and the sampling plan
The appropriateness of the methods you have used:
• Questionnaires, observation and interview benefits and drawbacks in relation to a start-
up business
• Analysis of your questionnaire, observation, interview and focus groups designs, what
have you done and WHY
• Analysis of the sample size in comparison to population size
• Pros and cons of sampling plan
• Analyse choice of secondary research methods (reliability, time, cost, relevance) in
relation to a start-up business
• Analyse data collected (quantitative, qualitative, internal, external) and how these data
will help meet the objectives
• Confidence level and confidence interval
http://www.macorr.com/sample-size-calculator.htm
You must analyse what you have done and why (research methods, data collected, sample
size, sampling method, questionnaire design, secondary sources, interview design,
observations) in reference to a start-up business your marketing objectives
• Analysis of the relevance of all the research and data collected to meet the market
research objectives
• Analysis of the relevance of the research and data collected in relation to a start-up
business (consider appropriateness, cost and budget)
 Activity
Benefits in relation Drawbacks in
to a start-up relation to a start-
business up business
Questionnaire

Observation

Interview

Focus Group
 Activity
Reliability Time Cost Relevance

Governmen
t websites
Competitor
s reports
Competitor
s websites
Other
internet
sources
D2: Evaluate the effectiveness of the pilot research recommending
changes that should be made to the final market research activity

Your word document must include the following:

The effectiveness of your sampling plan
• Recommend changes and justify (explain) your
recommendations
• Data missing? Further secondary research needed
• What are the objectives of these changes?
• What are you trying to find out/add to your research
• Why the information added is relevant to your research
• Why the information removed is not relevant to your research
• Have you modified any question? Why?
You must specified how each of the changes recommended will
help meet your marketing objectives
 M2 D2 HELP

Access document and follow the

structure, do not copy and paste the
questions or the information provided,
just use it as guidance to complete your
report.