Introduction

Demand for chocolate is increasing in China, and our idea is to capitalize on this by introducing the Max Brenner chocolate experience concept. China, however, portrays a totally new market culture different from our present footprints. Interacting with people in Shanghai will grant us the opportunity to explore whether Max Brenner is a concept worth introducing. Our marketing research would also help us to eliminate further uncertainties about the Chinese market and also allow us to dig deeper into the consumer needs of our target markets.

 

Research Objectives

The main objectives of our research would be:

 

• to discover and understand the Chinese consumers purchase behaviors, attitudes and perceptions towards new culinary experiences and Chocolate desserts.

• It would also give us an idea on how to position our business in the consumers mind should we decide to enter into this market.
   

The gathered information would form an essential part of our decision making process on whether to enter the Chinese market

 

Problems/ Research Questions

In order to satisfy our intended objectives, we would base our research on the following questions:

 

• Is there a demand for our product and service?

• Who is going to buy our products?

• Would we have to adapt our current products to the Chinese tastes?

• If we decide to enter, should we set up a chocolate bar, restaurant or  sale online?

• Which locations are appropriate for Max Brenner to set up?

 

These would serve as a strong framework and reduce the chances of deviations in our research.

 

Research method

The exploratory research method attempts to define the problem that has not been clearly defined. It helps lay an initial groundwork for future research by determining the best research design, data collection method and selection of subjects. Exploratory research normally depends on secondary data, such as literature and data or qualitative approach such as informal discussion and more formal approach through in-depth interviews. Therefore, this research method best suits our approach.

 

Develop Research Plan  

Data sources

Our research would require us to use both primary and secondary data. This would give us a better overview of the Chinese market.

 

Primary data

Primary data will be collected in the form of online surveys and personal interviews in order to help further define our objectives. Our restricted budget and time constraints also means that data would have to be collected in Shanghai. Max Brenner chocolate bar uses "experience chocolate with all their five senses in one" as an approach to the market. Therefore, it is important to understand whether the market appreciates this new way of experiencing chocolate. The personal interview primary data acquisition approach would also give us the chance to record behavioral reactions from consumers which would give us extra information.

 

Secondary data

In order to enter the market we also need to know and understand the environment and surrounding of the industry first. Secondary data, is therefore a perfect datasource to use in the overall market analysis. The data of the industry and the competitors in China would  be conducted from sources such as IBISworld, FactSet, and Passport by Euromonitor.

 

Research Approach & instruments

Our primary data research will be conducted through surveys. This will help us to assess people’s knowledge, beliefs, preferences and satisfaction, and to measure these magnitudes in the general population.

The instruments used to collect data will be questionnaires (both on field and online) and also qualitative measures through personal interviews, all set up based upon specific purposes and objectives of this research.

 

Sampling Plan

Sampling unit

We are going to conduct survey/questionnaire and make personal interviews to different types of consumers which includes expats in Shanghai, tourists, students, Shanghainese and middle class and above. We excluded low end workers and people below ages 16 from our sampling frame.

To make our survey, we have chosen 6 different locations in Shanghai namely:Xintiandi, Jinan, Pudong, East Nanjing, Fudan University and Tongji University. We chose these locations since they have a high population densities of our intended target markets. We will analyze information by tabulating the data, developing summary measures, statistical techniques & decision models.

 

Sample size

The sample size will be set at 38 with 15% margin of error, standard value of 5% and estimated prevalence of target event in the project area at 73%. We set the estimated prevalence at 73% because there is a probability that people might not be willing to respond to our survey. 

 

n = ( t2 ) [ p ( 1 - p ) ] m2

 

n = 4.2436 [0.73(1-0.73)] / 0.0225

   n=38

 

n = required sample size

t = confidence level at 95% (standard value of 2.060)

p = estimated prevalence of target event in the project area

m = margin of error a 5% (Standard Value of 5.0%

 

Sampling Procedure

There are two types of sampling procedure, probability and non-probability methods. In the survey, non- probability sampling procedure will be used. Although respondents are not chosen randomly in the non- probability method, we are not going to choose specific respondents considering demographic or economic factors. Respondents will be chosen randomly in different locations. However, we are going to conduct the survey in 6 different locations which have different characteristics, allowing us to reach various range of people. Hence, we are going to be able to observe students’ patterns in Fudan and Tongji University while we are going to have opportunity  to ask question to tourists in Pudong. To summarize, people are going to be chosen randomly while places are selected. This will enable us to attain ‘selected type’ of people such as students, expats and tourists.

 

Contact Methods

We are going to conduct our survey both by handing out paper in different locations and via Internet through online surveys.  Personal interview is going to be face to face. Wide range of questions were prepared to understand customer’s habits and preferences. There are both multiple choice questions and open ended questions in the survey. Personal interview questions are going to be  more detailed to get deeper understanding of consumer behaviour.

 

What is the sample design?

Cluster sampling is a sampling technique to get information from customers where the population is divided into different groups called clusters. Natural clusters are created such as geographic locations to acquire required information from each ‘cluster’. We chose cluster sampling method to observe different groups and evaluate their answers to questions. Therefore, this method gives us the opportunity to compare different cluster preferences and make strategies according to different customer behaviours.

 

Collect & Analyze Information

After collecting information via surveys and personal interviews, the problems that we asked in the beginning will be hopefully answered. According to the results, we are going to able to interpret the current situation and determine Max Brenner’s strategy in Shanghai.

 

Timelines