Question 3 (5 pts).

Read the case below and write a short research proposal for Sams Coffee to address their concerns. In particular.

1. determine the marketing problem(s) facing Sams Coffee (1pt),
2. determine the main research objectives (1.5pt),
3. For each research objective, what specific research design(s) would be needed? If exploratory research is needed, please identify which technique would you choose (in-depth interview, focus groups, etc.). Justify your choices. (2.5pt).

Sams Coffee

Most people enjoy a cup of coffee and a doughnut at some time. You can stop on the way to work to pick up breakfast or sit down and relax with a hot cup. It used to be simpleall you had to do was stop at the neighborhood bakery to get that snack. Now there are more choices. The northern states of New England had Sams Coffee, the chain providing their morning pick-me-up, while the South enjoyed fresh Ottos doughnuts. There were a few smaller chains around, but for years, each of these doughnut giants held a proverbial monopoly in its area. Sams Coffee traditionally focused more on its coffee products, while Ottos emphasized the doughnut end of the product line. But now, as each expands throughout the country, those niches are colliding. Another factor is the rising popularity of Beans, a gourmet coffee shop chain. With its wide variety of flavored coffees and baked goods, Beans is a competitor to be reckoned with.

Ottos, through popular demand and with great publicity and fanfare, went public in 2015. Several years later, Ottos had over 400 company-owned stores and was available in 20,000 other outlets, including grocery stores and Gas stations. In 2019, after the hype had dwindled, Ottos began to face problems. Over expansion and mismanagement caused it to post its first loss since its initial public offering, and the company was forced to close many stores.

Always a far larger chain than Ottos, Sams Coffee franchisees own and operate over 4,400 stores. Sams menu has expanded to offer breakfast sandwiches, iced coffee, hot coffee, muffins, bagels, and, of course, doughnuts. Although considered primarily a breakfast stop, there have been attempts to expand Sams into the lunch arena. However, its best opportunity for expansion is geographic. With a goal of 15,000 stores within 10 years, Sams is thinking large. The newest markets are Detroit, Charlotte, and Tampa.

The two chains never really had to compete against each another before. But now Sams, in addition to going head-to-head with Ottos, has Beans in its sights in terms of coffee sales. At the same time, Ottos is playing catch-up after its recent overexpansion woes. To show how much Sams is willing to invest in its desire to compete with Beans, it introduced an $8,000 cappuccino machine. The machine's simplicity allows any employee to use it and to create and re-create the same consistent cappuccino for customers. In another competitive move, Ottos released its own versions of the popular Sams Coolattas. In 2018, Ottos acquired a coffee line, and in 2019 it used that acquisition to roll out a new line of iced drinks, one of which tastes like its famous sugar-glazed doughnut.

Note: The company names used in this case are fictional.