MarketCheap

Marketing on the Cheap:Market Research using NC LIVE and Free Web Resources : 

Marketing on the Cheap: Market Research using NC LIVE and Free Web Resources NCLA/SELA Conference 2004 BLINC: Business Librarianship in North Carolina Susan Wolf Neilson and Steve Cramer

Scenario: Lauren wants to open an Internet café in Charlotte in the 28202 zip code area. She needs the library’s help with market research!: 

Scenario: Lauren wants to open an Internet café in Charlotte in the 28202 zip code area. She needs the library’s help with market research! Lauren’s Business Plan Outline: Executive Summary Company Overview Services and Products Market Analysis Strategy and Implementation Management Financial Plan

Primary Research: 

Primary Research Direct Mail Personal Interviews Experience

Secondary Research: 

Secondary Research Public sources (usually free) Government Libraries Commercial sources (rarely free) Subscription or fee based Market researchers, Trade associations, D&B, Reference USA Academic sources (usually free) Colleges & Universities

Market Analysis: the 4 P’s: 

Market Analysis: the 4 P’s Product Place Price Promotion

Slide6: 

4 P’s: the Marketing Mix

PRODUCT: Market Trends : 

PRODUCT: Market Trends Trade Associations: Gateway to Associations http://www.asaenet.org/cda/asae/associations_search/

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“GATEWAY TO ASSOCIATIONS”

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“SPECIALTY COFFEE ASSOCIATION”

1) PRODUCT: Market Trends : 

1) PRODUCT: Market Trends Trade Associations Gateway to Associations Google search: coffee “market trends”

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http://www.ncausa.org/ National Coffee Association

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http://www.beantrends.com/news.html

PRODUCT: Market trends: 

PRODUCT: Market trends Trade Associations Articles from NC LIVE databases (ABI-INFORM, Business Source Elite, InfoTrac Onefile) Example search: (internet or wireless) and cafe and market* and trend*

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ABI/INFORM Database (NC LIVE)

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…35% of restaurants and cafes will provide wireless internet access to customers by 2007.

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“Not surprisingly, today's most devoted coffee shop patrons are 18- to 34-year olds and those with annual incomes over $75,000. Forty-two percent of 18- to 34year-olds and 46 percent of those who earn more than $75,000 say that when they drink coffee away from home, they head straight for Starbucks-like shops, compared with just 32 percent of all away from-home coffee drinkers. The younger folks are attracted to the coffee-bar atmosphere, music selections and what tends to be a younger customer base, according to the report, while the wealthy simply want the best. Forty-two percent of adults in the highest income bracket agree that coffee shops sell better coffee than other places, compared with 34 percent of the total adult population. But these demographics make up just a sliver of the potential coffee shop consumer market. Almost 7 in 10 Americans (66 percent) drink coffee away from home at least occasionally, according to Mintel's survey, while only a third frequent gourmet java shops. The report does not suggest that the coffee shops' young, wealthy core consumer group is going to jump ship anytime soon, but instead implies that to grow business, coffee shops may want to cater to other demographics or socioeconomic groups.” --American Demographics– ABI/INFORM (NC LIVE)

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Business Source Elite NC LIVE

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Business Source Elite Thesaurus

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InfoTrac Onefile NC LIVE NC LIVE – New York Times thru ProQuest

1) PRODUCT: Market Trends : 

Trade Associations Articles from NC LIVE Databases Web Directories for Industries Competia Express About.com: Retail Industry 1) PRODUCT: Market Trends

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http://www.compedia.com/express

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http://retailindustry.about.com/

1b) PRODUCT: Competition: 

1b) PRODUCT: Competition Web Directories Google -- “Cyber Cafes” “Internet Cafes Charlotte North Carolina” Web sites - BizJournals http://charlotte.bizjournals.com/charlotte/ Hoover’s Company Records ABI/INFORM Dateline (NC LIVE)

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http://phonebook.superpages.com/yellowpages/

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http://www.bizjournals.com

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Hoovers from NC LIVE

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ABI/INFORM Dateline NC LIVE

1b) PRODUCT: Market Trends: Industry data : 

NAICS: North American Industrial Classification System “the new SIC” Used by the Census to study and organize U.S. industry data NAICS codes are searchable from http://www.census.gov/epcd/www/naics.html 1b) PRODUCT: Market Trends: Industry data

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Lots of hits: this NAICS # looks closest Not quite detailed enough, but it will have to do!

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1. census.gov 2. Retail trade data

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3. Annual Retail Trade Survey 4. Benchmark Report for Retail Trade and Food Services

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NAICS # (extra digit!) Provides benchmark data on coffee shops, including the number of shops selling certain items, and total sales of those items.

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Census data for a region: County Business Patterns Provides data at the state, county, zip code, and MSA level.

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Provides the total number of companies/per NAICS code in that area, and company size by employee: The “Compare” button lists the data for this NAICS code for all Charlotte zip codes.

Refresher on 1) PRODUCT: 

Refresher on 1) PRODUCT Trade Associations White Papers Industry Reports Newspaper and Magazine Articles Census industry data via NAICS codes (Have ReferenceUSA or Duns Million Dollar Database?)

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2) PLACE Pre-formatted lists Census.gov Demographics

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Demographics: a.) Pre-formatted lists Two sites listed on the NC LIVE business list: Economic Development Information System http://cmedis.commerce.state.nc.us/ Provides 2-page profiles of counties and regions from the State Department of Commerce (designed more for companies considering moving to NC) 2. North Carolina Economic Development Scans http://www.nccommerce.com/econscan/ Provides 4-page profiles of countries. More useful for small business. Covers wage data, infrastructure, employment by industry, etc.

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3. Charlotte Regional Development http://www.charlotteusa.com/crp/ Provides more detailed data for all the counties in this area:

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Demographics: b.) Census.gov American FactFinder: Or use the Data Sets link on the left if you prefer building your own tables.

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A sample of the tables available from our American FactFinder zip code search: Of course, our entrepreneur may want data on the whole city, since local residents won’t be the only customers of the Internet cafe!

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Census maps by household income:

Refresher on 2) PLACE: 

Refresher on 2) PLACE Lots of demographic data available for free Can be simple pre-formatted lists or the results of your own dataset search LINC: Log Into North Carolina is another good source: http://linc.state.nc.us/

3) PRICE: Consumer Spending: 

3) PRICE: Consumer Spending Consumer Expenditure Survey Consumer Confidence

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Consumer Expenditure Survey

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Consumer Expenditure Survey http://www.bls.gov/cex/home.htm

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The Conference Board Consumer Spending Trends -- Household Spending http://www.conferenceboard.org/

3b) PRICE: Industry Benchmarking: 

3b) PRICE: Industry Benchmarking U.S. Census reports Annual Benchmark Report for Retail Trade and Food Services (again!) Geographic Series – Accommodation and Foodservices – State Summaries Consumer Price Index

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Annual Benchmark Report for Retail Trade and Food Services

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North Carolina 1997 Economic Census Accommodation and Foodservices Geographic Area Series http://www.census.gov/prod/ec97/97r72-nc.pdf

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U.S. Consumer Price Index U.S. City Average beverage materials including coffee and tea U.S. City Average food away from home

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The South CPI South – Size Class B/C food away from home http://www.bls.gov/cpi/home.htm

3c) PRICE: Market Pricing : 

3c) PRICE: Market Pricing Internet, coffee, other food, lease prices wholesale retail

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International Coffee Organization http://www.ico.org The share of each market in the four groups is as follows: Colombian Milds: 30% New York – 70% Germany Other Milds: 40% New York – 60% Germany Brazilian Naturals: 80% New York – 20% Germany Robustas: 25% New York – 75% France

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NC LIVE – InfoTrac Onefile, Newspaper Source, Academic Search Elite

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Newspaper Source NC LIVE

Refresher on 3) Pricing: 

Refresher on 3) Pricing Primary sources may work here - visiting competition, taking surveys. Associations will help find wholesale pricing. Pricing also will involve what the market can bear (consumer confidence, expenditures). Government agencies will have statistics/reports on prices (imports for coffee), labor, expenditures, & sales.

4) Promotion: 

4) Promotion Media The Message Advertising Personal Selling Public Relations Budget

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Radio Advertising Bureau http://www.rab.com FAST FOOD USERS COFFEE USERS COOKIE CONSUMERS NEWSPAPER READERS TV VIEWERS

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To Spring ‘04 http://www.arbitron.com

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InfoTrac Onefile NC LIVE

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…At Krispy Kreme Doughnuts, affordable indulgence is the main positioning, and that strategy has powered the chain to tremendous growth…"Customers want a great-tasting treat, and that's what we give them because that's what customers expect… no one looks at Krispy Kreme as a replacement for lunch or dinner …it's a complement.'' Starbucks Coffee Co., long known as a savvy marketer, is getting into the indulgence business selling cream-based coffees that are more like milk shakes than your morning joe…Starbucks remains committed to developing both indulgent and non-indulgent beverage options for our customers… “Fast-food rethinks marketing; The fat police are taking names, and quick-service alters ad message, menu.” Advertising Age InfoTrac Onefile “message and restaurants”

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InfoTrac Onefile NC LIVE Sale Promotions

Refresher on 4) PROMOTION: 

Refresher on 4) PROMOTION Media research sources like Arbitron. Local newspapers: info for advertisers. Articles about trends and ideas in advertising could help, too. Most bigger reference departments have directories of media outlets; some have advertising rates books like from SRDS

Questions or Comments?: 

Questions or Comments?

Handouts & Follow-up: 

Handouts & Follow-up PowerPoint hand-outs Bibliography BLINC’s recommendations to NC LIVE on business databases Our business cards Thank you!

Steve CramerUniversity of North Carolina at Greensborosmcramer@uncg.edu: 

Steve Cramer University of North Carolina at Greensboro smcramer@uncg.edu Susan Wolf Neilson Wake County Public Library susan.neilson@co.wake.nc.us