Cases

Conducting Market Research for a European Coffee Machine Manufacturer

Challenge

The client, a consulting firm, outsourced its work to UC for a European manufacturer of automatic bean cup coffee machines for home and corporate use. With a view to understand the Indian market for bean cup machines, the client issued a mandate to UC to answer specific questions across various customer segments for the following machines:

    • Machines for the home/ corporate segment
    • Machines used by the HORECA segment

With this base information, the client sought UC’s assistance to conduct market research across tier 1 cities in India with the following primary objectives:

  • Sales and distribution of all types of coffee machines and beans
  • Consumption of coffee beverage
  • Consumer psychology and emerging trends.

Our Approach

UC conducted the market research in the following manner:

  • Identified Indian tier 1 cities with emphasis on cities with high coffee consumption based on proliferation of two of India’s most ubiquitous coffee chains
  • Carried out in-depth market research across these cities to -
  • Identify types and brands of coffee machines and coffee beans in the market across the customer segments defined
  • Understand supplying/ distribution channels and the retail prices for these machines and coffee beans
  • Market size of these machines/ beans and competition situation
  • Learn the price range of beverage sold across different outlets in the HORECA segment along with a general idea of overall consumption in cups of coffee at these outlets
  • Determine market openness for foreign companies and available entry options along with relevant policy issues
  • Understand the existing arrangement of after – sales – service
  • Compute cost of importation along with method of importation
  • Identify commonly practiced marketing activities
  • Compute overall consumption of coffee and understood general consumer psychology with assistance from the Indian coffee board.

Impact

UC delivered the specific market research results to the client.