The Coop: Market Research

Sandesh Patil | Section A | Roll No: 41

Objectives of Case
The objective is to review the recommended proposals provided by the executive
management and to decide
a) Whether to invest in market research?
b) How much money to spend?
c) Which programs to fund?

Major Marketing Problem

For the first time ever, the "Coop" is experiencing a decline in sales by 6% in 20 of 76
"Coop" restaurants even though the overall growth rate was steady for the chain. The
marketing problem is to understand why sales were down in the slumping stores even
though these stores were the considered the strongest before the decline. The VPs were
in disagreement. One thought the problem was with operations (service, quality) while
another believed it was brand image and marketing activities. Another problem was the
decision regarding co-branding strategy suggested by Wallace.
Apart from this Coop also faced some problems which subordinate in nature
a) Deviating from Mission
Trevor Wallace has led the company away from the "We are chicken" campaign into
other areas that may not reflect the image of what Buckmeister intended. Even though
the "chick-pizza" is successful, this could also be the reason why sales are declining in
many of the outlets. They could be diluting the brand image
b) Lackluster Performance of 4 P's: The Coop has no major market research to go off of
in order to effectively position them in a changing market. R&D doesn't seem to be
supported by good research in the market segments.
c) No Competitor insights:
The Coop is depending on a marketing VP with experience in the hotel industry and not
any real experience in fast food. They have no current research so they have no way of
knowing the effects that their competitors are having on the retail sales.

d) Poor Sales Strategy

There is no focus of a sales strategy. The current strategy is not working. This is probably
due to the fact that there is no research being done on the market yet.
Solution to the problem by the company
Program
Taste Test
QIP
Focus Group
BIMS
CES
Customer Feedback Card

Expected Expense
$6000 for 1 test (8-12 customers) + renovation
N.A.
$5000 for 1 focus group (8-12 customers)
$20000 to $50000
$45600 (Back of the envelop calculation)
N.A.

How the company can do marketing research and Limitations of the solution

Marketing
Research
Problem

Approach

Pros

Cons ( Limitations of
the solution)

Pricing

Focus Groups

Quality

Quality
Inspection
Program (simpler
version)

Easy to conduct, fast,

cost effective,
localized results
possible
Strict check, all
distribution channels
covered

Service

Customer
Experience Study

Brand Image

Brand Image
Monitoring
Survey

True picture,
performance linked
bonus
Measure of brand
awareness,
advertising
awareness as
compared to
competitors

Time consumed in
hiring
quality
inspectors
and
scheduling
visits,
outside vendor may
not understand QSR
or The Coop
Too expensive, recruiting true
customers could be a challenge
Too expensive, telephonic reply
may not reflect true image