Business Ideas For Dissertation Proposal Assessment- Competitive Advantage

Dissertation Proposal

Case Scenario/ Task

Business Idea 1:Starting a low calorie south Indian cuisine in wellington.

Feedback: I don't see much scope for competitive advantage with such a narrow focus. Indian restaurants are very common and I don't see the 'low calorie South Indian food' idea as presenting sufficient innovation to define a competitive advantage. Please keep thinking for a new idea, perhaps based on your research to date.

Business Idea 2: Establishing a mobile sweet cart business in the suburbs of wellington.

Research Question

1. What are the factors influencing impulse buying towards sweets?

2. How sweet taste preferences change with age?

3. Demands and trend patterns in confectionery industry in New Zealand?

Feedback: That idea does not sound very innovative, nor scalable. Keep thinking.

Business Idea 3: Establishing a Indian coffee house in Auckland

Feedback: There has been no substantial improvement in response to the feedback provided in respect to your dissertation proposal.

The business idea is entirely unconvincing, utterly lacking in competitive advantage and USP.

Just because a proposition is 'unique' does not make it a 'selling proposition' - that would require clearly demonstrable demand, which I cannot see in this case.

INTRODUCTION TO THE BUSINESS IDEA

Business Idea

The proposed business idea comprises of opening an Indian Coffee House in Auckland. The Coffee House would specialize in offering coffee based products (such as expresso, cappuccino etc.) based on traditional Indian coffee varieties. Traditional Indian coffee is available in thirteen different variants based on the source of its origin in India. These variants differ in their caffeine content, aroma and flavor and offer a rich collection of coffee for satisfaction of taste buds of every coffee lover. In addition to internationally available coffee based products, traditional Indian products such as ‘Madras Filter Coffee’ will also be served so as to reflect the rich taste of Indian tradition in an International market. Coffee beans for all thirteen varieties of coffee will be made available for individuals who might wish to indulge in rich Indian coffee flavors at their own time.

Customers

Customers for the Coffee House include all coffee lovers. The Coffee House would try to create awareness about Indian coffee in international market and hence would target all individuals (ages 15-60). Since coffee would be offered at a cheaper price (as compared to international chains such as Starbucks), individuals in low-mid income sections can also be targeted. Population statistics indicate that there are approximately 146,000 Indians in Auckland thereby forming a significant part of the population (Anthony, 2014). These individuals can be roped in with the help of special offers provided by the Coffee House.

Unique Selling Proposition

New Zealand is the home of coffee lovers. New Zealanders never shy away from trying out new flavors and experimenting when it comes to coffee products (Te Ara, 2016). This would provide an excellent opportunity for this business idea. Specialty coffee from India in thirteen different variants would offer a wide range of caffeine content, aroma and taste to select from and this can be used as a unique selling proposition of the coffee house (Burge, 2013). Additionally, availability of a wide variety of snacks from across India can also be used as a unique selling proposition of the Coffee House as these are not offered by any other (local or international) coffee chains in the country (Hills, 2013).

Mode of Selling

The Coffee House will act as a single point of sales for both coffee based products as well as coffee beans. The Coffee House will be located in Auckland as the city is known for its love of coffee and food enthusiasts.

Value to the Customers

Customers would benefit from a wide range of coffee variants that are extremely high quality. Food enthusiasts in Auckland will also be able to choose from a range of Indian snacks and sweets (Te Ara, 2016). Availability of unroasted beans for all coffee variants will serve to add further value for customers. In addition to exposure to rich taste, customer will also benefit from the price at which coffee will be offered (Jolliffe, 2010). Since the Coffee House will source its coffee directly from farmers and coffee growers in India, it would be possible to sell the same for a cheaper price as compared to international chains which need to set up manufacturing units in different countries or source their coffee from middlemen (Burge, 2013).

Origin of Idea and its Suitability

New Zealand ranks at number 15 in the world for its per capita coffee consumption rate per year. Statistics indicate that the popularity of coffee based products is such that approximately 25% individuals readily skip breakfast for consuming a cup of coffee in the morning (Jolliffe, 2010). New Zealanders are also known for their love of food and being an enthusiast. In other words, New Zealanders never shy away from trying out new food items and experimenting with different cuisines (Jolliffe, 2010). This together with impeccable love for coffee helped me in coming up with this idea. Indian coffee is immensely under-represented in international market and only a limited variety is served in select coffee shops across New Zealand (Hills, 2013). This business set up would therefore help Indian coffee gain representation and much deserved appreciation.

Competitive Advantage

A major competitive advantage of this business lies in its price advantage and value for money that would be offered to consumers. Sourcing coffee directly from farmers and coffee growers across India would allow selling it at reasonably cheaper rates as compared to established chains (Amaravathi & Raja, 2014).

Industry Rivalry for the Coffee House is particularly high owing to presence of both International as well as local competitors (Burge, 2013). Atomic Roastery, Beirut, Bluebell’s Bakery and Bolaven are some of the leading coffee shops in Auckland (Jolliffe, 2010) . Competition might further be intensified by the presence of international chains such as Starbucks. Seven Eleven and other departmental stores that serve coffee might also be counted as indirect competitors. In order to derive a competitive advantage against these established coffee houses, free coffee samples would be distributed in the neighborhood (Hills, 2013). 'Print Ad' campaigns would be launched in local newspapers describing the rich heritage of Indian Coffee. This would be coupled with creating an authentic Indian ambiance in the Coffee House (Babington, 2016). Paradigm would also be shifted from 'self-service model' adopted by popular coffee chains. Customers would be served at their table and use of traditional Indian utensils (including a steel glass to serve filter coffee) would be deployed so as to reflect Indian culture (Amaravathi & Raja, 2014).

Positioning

The proposed Coffee House would be positioned as a high quality coffee shop with its roots in Indian tradition.

Research Question

Which factors influence demand of coffee products and brand awareness of a Coffee House in Auckland?

Literature Review

Introduction

Primary focus of this literature review is to review existing literature on factors which influence demand of coffee products in Auckland, New Zealand. The review also seeks to examine factors which help in creating and improving brand awareness of Coffee Houses in the country.

Individual Attitudes towards Coffee

Coffee is an exceptionally popular product in New Zealand with its consumption being extremely high. Individuals in New Zealand view coffee both as a necessity as well as a luxury that can be enjoyed (George & jenkins, 2014). This results in an exceptionally high coffee consumption rate in the country. Individuals who view coffee more as a necessity than a luxury value it for its caffeine content and effects of the same (Bookman, 2012). They prefer having coffee on the go and refrain from investing a lot of time and money in coffee based products (Babington, 2016).

On the other end of the spectrum, individuals who are coffee enthusiasts often indulge in coffee for the flavor that it offers and the quality of coffee beans used to produce that particular flavor and aroma (Bookman, 2012). These individuals truly enjoy coffee and often have a specific favorite. These individuals do not mind paying an additional price for their favorite coffee (Janssen, 2012).

In the middle of these two extremities are individuals who experiment a lot with coffee and might just enter a coffee chain for hanging out with their peers or if they like the ambiance and prices at which coffee is served (George & Jenkins, 2014).

Factors that influence coffee popularity

Among factors which make a specific brand of coffee popular in New Zealand, is its flavor. Individuals in New Zealand truly love coffee and a wide variety of flavors that the product is available in. Existing literature indicates that approximately 56% of coffee lovers pick a specific brand or coffee product because of the flavor it offers (Janssen, 2012). This is closely followed by coffee aroma and this is a deciding factor for many individuals and coffee enthusiasts. Picking up unroasted coffee beans so as to smell them before placing an order is a common practice in New Zealand (Babington, 2016). Quality of coffee beans and their freshness are also considered immensely important by coffee lovers in New Zealand (George & Jenkins, 2014). Owing to their love for coffee based products and their familiarity with a wide range of beans that are available, New Zealanders have developed the capability of separating high quality coffee beans from those of low quality. Finally, price of coffee also plays an important role in deciding coffee preferences of individuals in New Zealand.

Conclusion

In conclusion, coffee based products are highly popular in New Zealand with individuals drawn to rich coffee flavors and high quality coffee beans. This provides viability to the chosen business idea. Consulted literature in this field however provides limited information regarding creating and promoting brand awareness of a Coffee House that is solely based on Indian products. This is a gap in literature and this study would attempt to fill the same.

Data Collection

Secondary Research Methods will be used for collecting data for this research. Academic databases would be searched for relevant literature on the subject. Additional information would also be gathered with the help of news articles and Government resources. A narrative review would then be undertaken so as to analyse the findings.

Theory and Application to Research

Two-factor Communication model of brand-awareness might be applied in this case. In this model, brand awareness is divided in two major parts: brand recognition and brand recall. During the brand recognition stage, a brand is literally presented to consumers and observation and survey techniques are utilized so as to monitor the kind of interest this stage generates (Malik et al, 2013). The second stage or brand recall comes later when consumers are automatically able to remember the brand based on their needs and possible solutions that might be available. This model is applicable to the proposed business idea as the Coffee House would first be presented to the consumers (Huang & Sarigollu, 2014). Response and interest generated would be monitored. If marketing attempts are successful and the Coffee House is at par with consumer expectations, brand recall stage would be reached (Babington, 2016).

In accordance with currently undertaken level of secondary research, it has been determined that inhabitants of New Zealand are food enthusiasts. They are coffee lovers and enjoy a wide range of coffee flavors (Janssen, 2012). It was also determined that aroma and quality of coffee beans are preferred attributes while making decisions regarding coffee products. Further, it was also indicated that a dew Indian coffee varieties that are available in the market are cherished by the target market (George & Jenkins, 2014). In light of these findings, it seems appropriate to propose an Indian Coffee House that would exclusively offer coffee products based on thirteen different Indian coffee varieties (Bookman, 2012).

However, literature review section in the dissertation would entail a detailed secondary data research and findings might suggest differently. Based on those findings, it might be necessary to make necessary amendments to the research question.

Implications of Research for Business Idea

The research might have several implications on the business idea and the concept as a whole. This research is intended to determine factors which might influence demand of coffee products and create strong brand awareness of the proposed Coffee House (Malik et al, 2013). Information regarding factors which improve coffee demand will help the business flourish. For example, literature might indicate a bent towards certain Indian coffee flavors (a few flavors are served by selected coffee shops in New Zealand) (Huang & Sarigollu, 2014). These flavors can then be highlighted by the Coffee House. Alternately, reaction of customers towards these flavors can provide a fair idea of the manner in which other flavors (or the overall idea of an Indian Coffee House) might be perceived by individuals in Auckland (Ngo & O’Cass, 2012). An idea regarding attributes of coffee products that are preferred by individuals in Auckland might also help undertake a successful marketing campaign (Babington, 2016). Flavors and attributes that are generating more interest can be highlighted. Further, pricing of various products can also be determined based on research results (Janssen, 2012). In case individuals in Auckland readily pay for quality, flavor and aroma of coffee products, a higher profit margin might be kept. Alternately, if more people in Auckland prefer coffee products that are value for money, products might be offered at a lower price (George & Jenkins, 2014).

Similarly, results of the research might also be used while trying to generate brand awareness. Results would be able to elaborate on reasons why individuals visit Coffee House. These reasons can then be utilized to provide an appropriate ambience and value for consumers. Service might also be modelled based on research results (Bookman, 2012).

On the negative side however, results of this research might result in changing the entire business idea. Results might predict that Indian Coffee products are not preferred in New Zealand as individuals might have a particular taste in coffee (Janssen, 2012). Alternately, results might also reveal that the idea is not financially feasible. It is possible that individuals in New Zealand have only limited or zero awareness regarding Indian Coffee flavors. Therefore marketing the same so as to create reasonable awareness would be too expensive. This would reduce the financial feasibility of the idea as the idea is being proposed with budget considerations (Bookman, 2012). Finally, research might indicate a mindset where inhabitants of Auckland are less likely to experiment with new coffee flavors. This would also prove detrimental to the idea and the idea would have to be abandoned (Janssen, 2012).