Research Methods for Managers Assessment 4 – Research Proposal Market potential of westernised, low priced, machine made sushi in Copenhagen, Denmark - A study of the attitudes of Copenhageners towards the concept of westernised, lowpriced, machine made sushi for take-away Prepared for: Associate Professor Meredith Lewley BUS703 Research Methods for Managers University of the Sunshine Coast Author: Niels Bøgesvang Riis 5 June 2006Niels Bøgesvang Riis i Assessment 4 Student no.: Executive Summary Go Sushi is an Australian take away sushi chain offering its customers freshly made, low priced, machine made sushi as a low-fat alternative to traditional fast food. To sustain growth Go Sushi wants to go international and franchisees in the capital of Denmark, Copenhagen, have shown interest in the Go Sushi concept. The purpose of this research proposal was to provide a research framework for evaluating Copenhagen as a potential point of penetration for Go Sushi to enter the Danish market. The management problem lead to the identification of the following research problem ‘What is the demand for low priced, low-fat sushi for take-away in Copenhagen?’, and a subsequent specification of research objectives to determine what knowledge was needed. After conducting the literature review, it was clear that a demand for low-fat fast-food in Denmark was present. Hence, one research objective was answered sufficiently. However, a new objective was identified concerning the need to explore attitudes of the Copenhageners towards westernised, low priced, machine made sushi (New Age Sushi) compared to traditional sushi, as the review indicated this could be an isssue. The conclusions of the literature review increased the complexity of the management problem, making it necessary to divide the research design of this study into an exploratory stage and a descriptive stage. The exploratory stage of the study focused on diagnosing the dimensions influencing attitudes towards New Age Sushi to make it possible to conduct proper subsequent descriptive research. Hence, the purpose of the descriptive stage was to identify and describe segmentation variables influencing positive attitudes towards New Age Sushi and define a target market profile based on the findings of these. However, as the information gained from the exploratory stage was needed to target the descriptive stage, this proposal only deals with the exploratory stage of the survey. Focus group interview was chosen as methodology for the exploratory stage, to gain appropriate insight in attitudes, behaviours and influencers concerning eating New Age Sushi and sushi in general. Focus groups were also chosen because these made it possible to conduct a concept testing, increasing the quality of the gathered data. The proposal discusses all major decisions needed before initiating the focus group sessions, i.e. decisions on the moderator, development of a moderator’s guide, identification and recruiting of respondents, number of groups and participants in each group and logistical issues including venue and time for the focus group. The proposal is finalised with a discussion of qualitative data analysis followed by a description of additional issues, i.e. time schedule, budget and limitations.Niels Bøgesvang Riis ii Assessment 4 Student no.: Table of Contents EXECUTIVE SUMMARY................................................................................................................................... 1 1. INTRODUCTION ....................................................................................................................................... 1 2. BACKGROUND TO THE RESEARCH PROBLEM.................................................................................. 2 3. PROBLEM DEFINITION ........................................................................................................................... 3 3.1. MANAGEMENT PROBLEM ...................................................................................................................... 3 3.2. RESEARCH PROBLEM........................................................................................................................... 3 3.3. OBJECTIVES ........................................................................................................................................ 3 4. LITERATURE REVIEW............................................................................................................................. 4 4.1. FRANCHISING – A POPULAR ENTRY STRATEGY...................................................................................... 4 4.2. TOWARDS HEALTHIER FAST-FOOD ....................................................................................................... 5 4.2.1. “Pseudo” Sushi .......................................................................................................................... 5 4.3. PROFILING PROSPECTS IN DENMARK .................................................................................................... 6 4.4. SUMMARY............................................................................................................................................ 7 5. RESEARCH DESIGN & METHODOLOGY .............................................................................................. 9 5.1. RESEARCH DESIGN............................................................................................................................ 10 5.1.1. Fist Stage – Exploratory Stage................................................................................................ 10 5.1.2. Second Stage – Descriptive Stage.......................................................................................... 10 5.2. METHODOLOGY.................................................................................................................................. 11 5.2.1. Focus Groups .......................................................................................................................... 11 5.3. DATA ANALYSIS ................................................................................................................................. 14 6. ADDITIONAL ISSUES ............................................................................................................................ 15 6.1. TIME SCHEDULE................................................................................................................................. 15 6.2. BUDGET ............................................................................................................................................ 15 6.3. LIMITATIONS ...................................................................................................................................... 15 LIST OF REFERENCES ................................................................................................................................. 17 APPENDIX 1 – STRUCTURE OF LITERATURE REVIEW............................................................................ 19 APPENDIX 2 – MODERATOR’S GUIDE........................................................................................................ 20 APPENDIX 3 – DEMOGRAPHIC SURVEY.................................................................................................... 21Niels Bøgesvang Riis 1 Assessment 4 Student no.: 1. Introduction Go Sushi is an Australian take away sushi chain offering its customers freshly made, low priced, machine made sushi as a low-fat alternative to traditional fast food. The company’s business model has proven very successful and growth has been significant, with the opening of 21 franchise shops in three years. To sustain growth Go Sushi wants to go international and franchisees in the capital of Denmark, Copenhagen, have shown interest in the Go Sushi concept. The purpose of this research proposal is to provide a research framework for evaluating Copenhagen as a potential point of penetration for entering the Danish market. The research proposal has been divided into the following sections: • Background to the Research Problem showing the importance of conduction research in this situation. • Problem Definition outlining the management problem, research problem and research objectives. • Literature Review analysing practitioner and academic literature related to the parent and immediate disciplines of the research. • Research Design and Methodology highlighting the needed research design and methodology. • Additional Issues describing time schedules, costs and limitations of the study.Niels Bøgesvang Riis 2 Assessment 4 Student no.: 2. Background to the Research Problem Go Sushi is an Australian take away sushi shop offering its customers fresh machine made, low priced sushi as a low-fat alternative to traditional fast food. The first Go Sushi shop was company owned and established on the Gold Coast in 2002. Since then, Go Sushi has expanded rapidly, covering all major cities in Queensland and New South Wales with its 22 shops. Three of these shops are company owned while the rest are franchised. The mission of Go Sushi is to provide its customers with the freshest, tastiest and best quality take away sushi in a friendly and hygienic environment (Go Sushi 2006). Go Sushi does not serve traditional Japanese sushi, i.e. using raw fish. Instead, the sushi has been westernised, by adjusting ingredients to the tastes of the Australian consumers, serving sushi with marinated chicken and beef. To keep costs and price low, production efficiency has been increased dramatically by using a sushi machine in each store, instead of a professional sushi chef (Go Sushi). Furthermore, Go Sushi shops are very compact and designed to be positioned in shopping centres, train stations and other places where customer flow is high (Go Sushi). The shops have a few stools for diners, but the concept essentially aims at people who want a healthy snack on the run (Go Sushi 2006). This strategy has been a great success, which has been proved by competitors trying to copy the concept (Walsh 2004). To sustain an acceptable growth rate, Go Sushi has decided to go global, using a franchise strategy to enter the European market. This market entry strategy has been chosen because Go Sushi has a well developed franchise system, which has proved its quality in Australia (Go Sushi 2006). Recently, franchisees in the capital of Denmark, Copenhagen, have shown interest in the Go Sushi concept. However, entering and operating in the European market will be markedly different from Australian, making it important to conduct appropriate research prior to entry (Jakubowski 1995). This research study will focus on the geographic area of Copenhagen, Denmark, to identify whether the Go Sushi concept will suit the Danish market.Niels Bøgesvang Riis 3 Assessment 4 Student no.: 3. Problem Definition 3.1. Management Problem Given the background present in the previous section, the following management problem has been identified: • Should Go Sushi penetrate the Danish market? 3.2. Research Problem The management problem has lead to the identification of the following research problem: • What is the demand for low priced, low-fat sushi for take-away in Copenhagen? 3.3. Objectives The following objectives were derived directly from the research problem: 1. To identify trends which encourage or discourage low-fat, take-way fast-food in Denmark. 2. To identify relevant segmentation variables of target market prospects. 3. To develop a customer profile of the target market based on the identified segmentation variables. 4. To determine the potential market for low priced, low-fat, take-away sushi in Copenhagen as defined by the size of the target market. 5. To determine the growth of the potential customers.Niels Bøgesvang Riis 4 Assessment 4 Student no.: 4. Literature Review The purpose of this literature review is to present existing relevant knowledge about the present management problem. The review is conducted on the parent disciplines of franchising and fastfood, which will be narrowed down to cover the immediate discipline of low-fat fast-food tendencies in Denmark including a profiling of consumers. An illustration of the literature review’s structure is presented in Appendix 1. To generate maximum knowledge from secondary data, both academic and practitioner articles are reviewed. It has not been possible to collect any internal secondary data, as the research proposal is done externally. 4.1. Franchising – a Popular Entry Strategy Worldwide, franchising has become the fastest growing method of facilitating expansion for a wide variety of businesses (Hoffman & Preble 2003; Hoover, Ketchen & Combs 2003; Quinn 1998; Restaurant & Institutions 2005; Watson & Kirby 2004). In the United Kingdom (UK) the popularity of franchising is apparent as the number of franchise systems has increased from 170 in 1984 to 667 in 2002 (Watson & Kirby 2004). In the United States (US), it is estimated that franchising accounts for more than US$1 trillion annually in retail sales, generated by 320,000 small businesses in 75 different industries (Castrogiovanni, Combs & Justis 2006). The popularity of franchising is caused by its two major advantages. Firstly, the low outletmonitoring costs and secondly the inexpensive access to capital for the franchisor, as the franchisee makes all initial investments (Hoover, Ketchen & Combs 2003; Morrison 2006). These advantages have made franchising the preferred method for expansion by fast-food companies (Morrison 2006) and Go Sushi’s decision to use franchising as an entry strategy into Denmark is definitely justifiable. In an international context, much literature has been written on factors to consider when using franchising as a market entry strategy (Bishop 2006; Burton, Cross & Rhodes 2000; Duckett 2001; Morrison 2006; Quinn 1998). Nevertheless, it has not been possible to identify research conducted on strategies related directly to the Danish market. However, research conducted in the US and Turkey agrees that location, i.e. successful site selection, is the most important factor for establishing a successful franchise (Hoffman & Preble 2003; Kara, Kaynak & Kucukemiroglu 1997; Timor & Sipahi 2005). Thus, Go Sushi must identify districts of Copenhagen where the density of target market customers is the highest and open up store(s) in these geographic locations, making the product or service readily available for the customers.Niels Bøgesvang Riis 5 Assessment 4 Student no.: 4.2. Towards Healthier Fast-Food People from Denmark and the UK increasingly eat outside their homes, using more money on healthy take-away food from cafés and coffee shops than ever before (Horesta 2005; Marketing Week 2005). Marketing Week (2005) and Horesta (2005) describe how the traditional fast-food outlets in the UK and Denmark have not adjusted to changes in demand fast enough and hence have suffered from the increasing health awareness amongst the population. However, the traditional fast-food industry has undergone significant changes during the last two decades to comply with the demands for healthier fast-food (Darian & Cohen 1995; Groth & Fagt 2003; Horesta 2005; Kara, Kaynak & Kucukemiroglu 1997; Marketing Week 2005; Restaurant & Institutions 2005). Thus, a demand for low-fat fast-food as a supplement to traditional fast-food is present in most of Europe (Darian & Cohen 1995; Groth & Fagt 2003; Horesta 2005; Jibrin 2004; Marketing Week 2005; Restaurant & Institutions 2005), creating a lucrative environment for low-fat fast-food providers such as Go Sushi in Denmark. In Denmark and the UK new attributes has been added to the demand for low-fat fast-food, creating a want for handy, ready-to-eat, tasty fast-food of a high quality (Groth & Fagt 2003; Horesta 2005; Kara, Kaynak & Kucukemiroglu 1997; Marketing Week 2005; Reinis, R 2001; Young, Hoggatt & Paswan 2001), showing a clear encouragement of low-fat take-away fast-food. Hence, objective 1 of this research proposal is answered. However, research conducted in Denmark shows that low-priced fast-food often is related to high-fat fast-food amongst the population (Groth & Fagt 2003). This creates a new objective of exploring the attitudes towards low-priced sushi compared to traditional sushi. 4.2.1. “Pseudo” Sushi Horesta (2005) and Ravneberg (2006) describe an increasing popularity of Asian style foods in Denmark and the US. The studies show that especially Generation Y (born 1978-1994) has embraced Asian cuisine, mainly due to the perceived attributes of Asian food as convenient, lowfat and healthy (Horesta 2005; Ravneberg 2006). Thus, it is not surprising that sushi is becoming increasingly poplar in the US (Journal Record 2000; Ravneberg 2006; Sly 2002). No research has been identified concerning the popularity of sushi in Denmark or Copenhagen, leaving a knowledge gap concerning the attitudes of Copenhageners towards sushi. However, the Danes increasingly buy and demand smaller meals, showing a trend of “snacking” (Horesta 2005; Groth & Fagt 2003). If this is combined with the strong focus on low-fat fast-food, it is plausible to state that a demand for take-away sushi must be present, because sushi suits the “snacking” tendency very well, as it is healthy, handy, quick, low in fat and of high quality.Niels Bøgesvang Riis 6 Assessment 4 Student no.: Friedland (2003) and Elaine (1995) specifically cover the popularity of machine made, westernised, low-priced sushi in the US, which has proven very successful along the West Coast, but especially on Manhattan, New York. However, the articles point out the “pseudo image”, machine made, westernised sushi can have (Friedland 2003; Elaine 1995). Hence, Go Sushi’s westernised machine made sushi can be an entry barrier if not seen as attractive by Copenhageners, adding a dimension to the objective of exploring attitudes towards low-priced sushi. Hence, a new objective has been identified of exploring the attitudes of the Copenhageners towards westernised, lowpriced, machine made sushi compared to traditional sushi. 4.3. Profiling Prospects in Denmark Not much research has been done on the profiles of health-aware consumers in Denmark. However, Groth, Fagt & Brøndsted (2001) and Groth & Fagt (2003) identify factors which relate to health-awareness. The variables socioeconomic group and education are closely related to health awareness in Denmark (Groth, Fagt & Brøndsted 2001; Groth & Fagt 2003). The higher the socioeconomic group the smaller is the gap between eating habits and governmental dietary recommendations (Groth, Fagt & Brøndsted 2001; Groth & Fagt 2003). However, a stronger relationship was present between higher education and health awareness, where respondents with a long higher education have the healthiest lifestyle in relation to governmental dietary guidelines (Groth, Fagt & Brøndsted 2001; Groth & Fagt 2003). Research conducted in Denmark also shows that single women are more health aware than single men, showing a link between gender and health awareness. However, single men and younger people (15-24 years of age) eat the most fast-food (Groth & Fagt 2003). Groth & Fagt (2003) found no connection between geographic variables and health awareness in Denmark. Hence, the following segmentation variables related to high health awareness can be defined: • Marital status: Single men eat the most fast-food. • Educational level: The strongest determinant of high health awareness is a high educational level. • Socioeconomic group: The higher socioeconomic group the higher health awareness. • Gender: Women healthier habits than men. • Generation (Age): Generation Y (1978-94) is very much into convenience food and Asian cuisine. Younger people (15-24 years of age) eat more fast-food than any other age group. As Go Sushi targets customers having high health awareness (Go Sushi 2006), these variables can be determinants of the target market. However, this must be investigated and the factors with the highest importance have to be identified.Niels Bøgesvang Riis 7 Assessment 4 Student no.: 4.4. Summary After the going through the relevant secondary data, research objective 1 has been answered sufficiently, as multiple, contemporary articles agreed on a presence of demand for low-fat fastfood in the US, UK and Denmark. Furthermore, a new objective has been identified concerning the attitudes of Copenhageners towards westernised, low priced, machine made sushi (New Age Sushi) compared to traditional sushi. This objective has created a redefinition of the research objectives as presented in Table 4.1 page 8. Table 4.1 also summarises the knowledge gap after the completion of the literature review.Niels Bøgesvang Riis Assessment 4 Student no.: 8 Table 4.1 – New Research Objectives, Relevant Secondary Data & Findings and Knowledge Gaps Objectives Relevant External Secondary Data Findings Gaps Requiring Primary Data 1. To identify trends which encourage or discourage low-fat, take-way fastfood in Denmark. Specific for Denmark: • Horesta (2005) • Groth & Fagt (2003) • There is a clear trend of health awareness amongst the Danish population encouraging low-fat, take-away fastfood. • None 2. To explore the attitudes of healthaware Copenhageners towards New Age Sushi. For the US: • Friedland (2003) • Elaine (1995) • Low-priced, machine made sushi has proven very successful on the West Coast of the US and in Manhattan, NY. • The Copenhageners’ attitudes towards westernised, machine made, low priced sushi compared to traditional sushi must be explored. 3. To identify segmentation variables which define health-aware Copenhageners with a positive attitude towards New Age Sushi. Specific for Denmark: • Groth, Fagt & Brøndsted (2001) • Groth & Fagt (2003) • Horesta (2005) The following variables are related to high health awareness: • Marital status • Socioeconomic group • Educational level • Gender • Generation (age) • It has to be determined if the segmentation variables determining high health awareness also influences a positive attitudes towards westernised low priced, machine. • Hereafter, the major influential segmentation variables must be identified due to data analysis considerations (amount of respondents in cross-tabulation). 4. To develop a customer profile of Go Sushi’s target market. Specific for Denmark: • Groth, Fagt & Brøndsted (2001) • Groth & Fagt (2003) • Horesta (2005) The following characteristics have been identified: • Single men eat the most fast-food. • Higher social group (measured by income) equals higher health awareness. • Higher education equals higher health awareness. • Women have healthier habits than men. • Generation Y is very much into convenience food and Asian cuisine. • Younger people (15-24 years of age) eat more fastfood than any other age-group. • Must be identified which characteristics the target market of Go Sushi possesses based on the identified segmentation variables (objective 3). Hereby a profile of the target market will be developed, making it possible to identify size of target market and hence size and growth of the potential market. 5. To determine the potential market for Go Sushi’s sushi. • None • None • Objective not answered. 6. To determine the growth of the target market. • None • None • Objective not answered.Niels Bøgesvang Riis Assessment 4 Student no.: 9 5. Research Design & Methodology After the completion of the literature review, it is clear that a two stage research design is necessary. This is due to creation of the new research objective and because the target market must be specified further before any descriptive designs can be used. Hence, the research design will be divided into an exploratory stage followed by a descriptive stage. Table 5.1 summarises decisions on the research design and methodology. These decisions will be justified in the following sections. Table 5.1 – Research Approach Objective Needed Knowledge Research Approach Research Technique 1. To identify trends which encourage or discourage lowfat, take-way fast-food in Denmark. • None. Objective answered sufficiently in literature review. N/A N/A STAGE 1 – Exploratory 2. To explore the attitudes of health-aware Copenhageners towards New Age Sushi. • The Copenhageners’ attitudes towards westernised, machine made, low priced sushi compared to traditional sushi must be explored. Exploratory Focus Group STAGE 2 – Descriptive 3. To identify segmentation variables which define Copenhageners with a positive attitude towards New Age Sushi. • A maximum of three major segmentation variables determining positive attitudes towards westernised, low priced, machine made sushi must be identified due to data analysis considerations (amount of respondents in cross-tabulation). Descriptive Questionnaire 4. To develop a customer profile of Go Sushi’s target market. • The hypothesis, i.e. the characteristics of the target market, must be tested to make it representative. • Hereby a profile of the target market will be developed, making it possible to identify size of target market and hence size and growth of the potential market. Descriptive Questionnaire 5. To determine the potential market for New Age Sushi. • After target market has been specified, the size of the target market must be identified. Descriptive Descriptive statistics 6. To determine the growth of the target market. • The growth rate of the target market must be identified. Descriptive Descriptive statisticsNiels Bøgesvang Riis Assessment 4 Student no.: 10 5.1. Research Design The conclusions of the literature review increased the complexity of the management problem, as attitudes of the Copenhageners towards westernised, machine made, low priced sushi (New Age Sushi) have to be explored, before the target market and hence market potential can be identified. This will be considered through objective 2 as shown in Table 5.1 page 9. Thus, the research design of this study will be divided into an exploratory stage and a descriptive stage. 5.1.1. Fist Stage – Exploratory Stage First stage of the research design will be exploratory, as influential dimensions have to be explored, before the successive descriptive research can be properly targeted. Hence, the exploratory stage must diagnose the dimensions influencing attitudes towards New Age Sushi to make it possible to conduct proper subsequent descriptive research. Go Sushi is a concept never seen in Copenhagen, meaning that qualitative data concerning the feelings, opinions and attitudes towards New Age Sushi must be collected to get a better understanding of the issue. Therefore, the exploratory stage will be used as a concept testing, testing the “feel” towards the concept and the product of New Age Sushi. If successful, conclusions drawn from the exploratory stage will be used to formulate a hypothesis, defining influencers on positive attitudes towards New Age Sushi, which can be used to develop a targeted descriptive research design. In relation to this, is it important to underline that exploratory research give indications, which cannot be generalised (Zikmund 2003). Hence, the developed hypothesis must be tested using a descriptive research design. 5.1.2. Second Stage – Descriptive Stage The primary goal of the descriptive stage of the study is to test the hypothesis generated from the exploratory stage, to create a result which can be generalised. Hence, the purpose of the descriptive stage is to identify and describe segmentation variables influencing positive attitudes towards New Age Sushi and define a target market profile based on the findings of these. Hence, this stage will define the ‘who, what, when, where and how’ of the issues to be identified, which a descriptive design suits very well (Lawley 2006). Furthermore, a descriptive design will make it possible for Go Sushi management to use the results for making valid decisions concerning the target market (Zikmund 2003). However, as mentioned, the conclusions from the exploratory stage need to be gathered before the hypothesis can be stated. Thus, the descriptive stage will not be considered further in this research proposal.Niels Bøgesvang Riis Assessment 4 Student no.: 11 5.2. Methodology 5.2.1. Focus Groups Focus group interviews have been chosen as methodology for the exploratory stage. A focus group interview is an unstructured, free-flowing interview with a small group of people and is the most common method for gaining insights in consumers’ attitudes in exploratory research (Lawley 2006; Zikmund 2003). The major purpose of the focus group interviews will be to explore the attitudes towards New Age Sushi, i.e. westernised, machine made, low price sushi (objective 2). In relation to this, focus groups are appropriate because insights have to be explored concerning why people eat or do not eat sushi today and what impact price, ingredients and production methods have on this behaviour. Purchase will inevitably also be caused by situational factors such as time and place, which are more likely to be identified in a focus group than a rigid survey (Zikmund 2003). Focus groups have also been chosen because it will be possible to perform a concept test of New Age Sushi, which will increase the quality of the study, as respondents will have ‘hands-on’. Furthermore, focus groups are inexpensive and fast ways of exploring issues (Zikmund 2003), making Go Sushi able to gain quick insight in the attitudes of the Copenhageners towards the concept. To ensure quality of a focus group interview several key decisions have to be made before the actual focus group (Aaker et al. 2005). These include decisions on the moderator, development of a moderator’s guide, identification and recruiting of respondents, number of groups and participants in each group and logistical issues including venue and time for the focus group (Aaker et al. 2005). In the following, each of these decisions will be described. 5.2.1.1. The Moderator The moderator plays a crucial part of conducting a successful focus group (Aaker et al. 2005). This combined with the low costs of conducting focus group interviews, justifies that a highly skilled, and hence expensive, moderator will be used in the focus group. Furthermore, this will mean that only one moderator is necessary and that there will be economies of scale due to the high number of respondents interviewed at once (Aaker et al. 2005). The moderator must be recruited on the basis of the following critical moderating skills (Aaker et al. 2005; Zikmund 2003):Niels Bøgesvang Riis Assessment 4 Student no.: 12 • A genuine interest in people and a careful listener. • Ability to quickly establish an open and relaxed atmosphere. • Flexible, i.e. being able to adjust the moderator’s guide to suit group, to ensure the discussion does not loose its spontaneity and becomes a question-and-answer session. • Ability to introduce a new topic when another is getting exhausted to secure a good discussion flow. • Ability to secure group synergies by making sure everyone has their saying and not just the dominant individuals. 5.2.1.2. The Moderator’s Guide The moderator’s guide is a discussion protocol which serves as a check list of the specific issues to be covered, derived from the research objectives (Aaker et al. 2005). The discussion protocol is a guide and hence not just a list of formal questions, as this would destroy the flexibility of the focus group. A draft of a moderators guide is placed in Appendix 2 together with a demographic survey identifying relevant demographics of the respondents. 5.2.1.3. Identification & Requitement of Respondents The target population of the research is Copenhagen. Hence, all participants will be Copenhageners as defined by their living address (Postcode 1000 to 2450). Respondents will be identified on the segmentation variables identified in the literature review, as these have been found to influence attitudes towards health. However, due to the high number of variables, three have been selected to define the recruiting protocol, specifying the required selection criteria (Zikmund 2003). Gender, age and educational level have the most influence on health awareness (Groth & Fagt 2003), making these factors appropriate for the screening process. It is desirable to have a homogeneous group (Zikmund 2003). Hence, a number of focus groups will have to be conducted, using participants with similar educational levels, as this will provide homogeneity in perceptions, experiences and verbal skills, which is very important (Aaker et al. 2005). However, it is important that respondents within these segments represent a mix of age and gender. Thus, segments defined by their educational background, but with differences in gender and age will be requited. To get a homogeneous focus group, groups consisting of respondents with the following three educational levels will be created: 1. High school, technical school and trade school 2. Associate’s degree and bachelor’s degree 3. Post graduate degreeNiels Bøgesvang Riis Assessment 4 Student no.: 13 It is recommended that at least two focus groups are conducted for each segment (Aaker et al. 2005) meaning that a total of six focus groups will be conducted. 5.2.1.4. Number of Groups & Participants A trend towards ‘mini-groups’ is growing, meaning that groups of four to six participants are recommendable, due to a higher quality of the data collected (Aaker et al. 2005). Hence, six participants for each focus group is the target, meaning that eight respondents will be invited for each group to allow for no-shows. Hence, total number of participants needed is 48. Using educational level as a segmentation variable to define the groups means that both current and former students will have to be targeted. This makes it complex to identify participants in already established groups. Therefore, a requitement agency will be used to identify participants. However, it must be a condition that none of these participants have been in a focus group within the last six months, as these potentially can be ‘professionals’ who are no longer representative of the population (Aaker et al. 2005). 5.2.1.5. Logistical Issues Venue The logistical issues are less complex due to the fact that all participants will be living in Copenhagen. Hence, a central position is needed, making Copenhagen Business School (CBS) appropriate as this has a very central location, is easily accessible (busses, metro and good parking facilities) and has rooms with the needed facilities for conducting focus groups. The rent is furthermore cheap, because CBS focuses on establishing a strong relationship with businesses and hence encourage businesses to use their facilities. Timing It is important that the focus groups are scheduled at a time suitable for the participants (Aaker et al. 2005). Due to the fact that several participants will be employed or students, all groups will be conducted early evening. One focus group session is expected to last 90 minutes. Observers As the focus group sessions will be videotaped, it is not necessary for Go Sushi representatives to be present other than the responsible person(s) of the research.Niels Bøgesvang Riis Assessment 4 Student no.: 14 Refreshments Different refreshments will be provided for the participants, mainly consisting of drinks such as tea, coffee, water and soft drinks. As the focus group will have sushi served during the session, it is assumed that this will assemble sufficient refreshments. Incentives Monetary incentives have been identified as the most effective and least biasing incentive (Zikmund 2003). Hence, it has been chosen to award participants with AU$100 for attending the focus group interview. The participants will have the opportunity of donating this money to a charity of own choice. 5.3. Data Analysis Due to the large amount of qualitative data, data analysis is very complicated in focus groups and a high risk of interpreter bias is present (Aaker et al. 2005). However, the data must be analysed in relation to the purpose of the focus group, i.e. to explore the attitudes towards New Age Sushi and give insights in why consumers eat or do not eat sushi and what impact behavioural and situational factors have. Hence, these factors must be identified in the data analysis, to be able to create a targeted descriptive research design and the belonging hypothesis. In analysing the data it is important to recognise that attitudes towards a new concept tend to be conservative when conducting focus groups (Aaker et al. 2003). What is very important in this research is to look for similarities and differences between the groups as these represent different market segments. Hence, to be able to identify variables which influence attitudes towards New Age Sushi, differences in terms of age, gender, educational level, income and civil status as identified in the demographic survey, must be identified. The demographic survey given in the beginning of the focus group will facilitate this (Appendix 3).Niels Bøgesvang Riis Assessment 4 Student no.: 15 6. Additional Issues 6.1. Time Schedule The Gantt chart below shows the timeline for the major tasks in the exploratory stage of the study. As illustrated the exploratory stage will take approximately 8 weeks. Figure 6.1 – Gantt Chart of Major Tasks Week 1 2 3 4 5 6 7 8 9 Task 1. Development of moderators guide 2. Identification of participants via recruitment agency 3. Running of focus groups 4. Data analysis and hypothesis development 5. START DESCRIPTIVE STAGE 6.2. Budget Table 6.1 below shows the budget of the exploratory stage of the research study. As shown the total cost of conducting the exploratory stage will be AU$23,090. Table 6.1 – Budget for Exploratory Stage Description Calculation Cost Development of moderators guide 20 hours* 120$ $2400 Fee, participant recruitment agency $1000 $1000 Refreshments including sushi 20$*6 times + 5$*48 persons $360 Rent of focus group room 120$ * 6 times $720 Incentives 100$ * 48 persons $4800 Moderator 150$*3 hours * 6 focus groups $2700 Data analysis 120$ * 37 hours * 2,5 weeks $11,110 Total Cost AU$23,090 6.3. Limitations Focus group research has many advantages, but as every other research method is has its limitations (Morgan 1997). The moderator has less control over the data produced if compared to depth interviews or quantitative studies (Morgan 1997). This is because the moderator has to allow participants to discuss, ask questions and express any doubts or opinions, having limited control over this interaction other than focus participants on the topic (Morgan 1997). This limitation isNiels Bøgesvang Riis Assessment 4 Student no.: 16 underlined by the nature of the focus group as being open ended and hence impossible to predetermine entirely (Morgan 1997). Furthermore, it should be acknowledge that it cannot be assumed that the participants are expressing their definite individual view, as they are speaking in a unique context. Hence, it can be hard to clearly identify the individual message (Morgan 1997). Finally, is must be underlined that the conclusions from an exploratory study cannot be generalised, as a small non-representative sample is used (Zikmund 2003), underlining the need for the second descriptive stage of this research study. Hence, the results of the focus groups can only be used to provide insights in how to develop and target the subsequent descriptive study.Niels Bøgesvang Riis Assessment 4 Student no.: 17 List of References Aaker, DA, Kumar, V, Day, GS & Lawley, M 2005, Marketing Research, Pacific Rim edition, John Wliey & Sons Australia Ltd., Milton, Australia. Bishop, J 2006, Entry strategies, Supply Management, vol. 11, no. 3, p. 37 Burton, B, Cross, AR & Rhodes, M 2000, Foreign market servicing strategies of UK franchisors: An empirical enquiry from a transaction cost perspective, Management International Review, vol. 40, no. 4, p. 373-400 Castrogiovanni, GJ, Combs, JG & Justis, RT 2006, Resource scarcity and agency theory predictions concerning the continued use of franchising in multi-outlet networks, Journal of Small Business Management, vol. 44, no. 1, p. 27-44. Darian, JC & Cohen, J 1995, Segmentation by consumer time shortage, Journal of consumer marketing, vol. 12, no. 1, pp. 32-44 Duckett, B 2001, The United Kingdom: Launching pad to European expansion, Franchising World, vol. 33, no. 4, pp. 50-51 Elaine, L 1995, Sushi in just 3 seconds, from a robot, New York Times, 4 January, p. 1 Friedland, A 2003, Asian food: Setting new standards, Food Management; vol. 38, no. 11, pp. 32- 44 Go Sushi 2006, Go Sushi website, viewed 20 April 2006, . Groth, MV & Fagt, S 2003, Danskernes kostvaner: Måltidsvaner, holdninger, sociale forskelle og sammenhæng, The Danish Veterinary and Food Administration, viewed 21 May 2006 Groth, MV, Fagt, S & Brøndsted, L 2001, Original communications: Social determinants of dietary habits in Denmark, European Journal of Clinical Nutrition, vol. 55, pp. 959-966 Hoffman, RC & Preble, JF 2003, Convert to compete: Competitive advantage through conversion franchising, Journal of Small Business Management, vol. 41, no. 2, pp. 187-204 Hoover, VL, Ketchen, DJ & Combs, JG 2003, Why restaurant firms franchise: An analysis of two possible explanations, Cornell Hotel and Restaurant Administration Quarterly, vol. 44, no. 1, pp. 9-16 Horesta 2005, Tendens – Økonomisk analyse fra HORESTA, No. 1, May 2005, viewed 21 May 2006, Jakubowski, I 1995, Marketing in the new Europa, British Food Journal, vol. 97, no. 6, pp. 18-24.Niels Bøgesvang Riis Assessment 4 Student no.: 18 Jibrin, J 2004, Fast but not fattening, Prevention Emmaus, vol. 56, no. 5; pp. 147-155 Journal Record 2000, Jalapeno sushi, Journal Record, 24 August, p. 1 Kara, A, Kaynak, E & Kucukemiroglu, O 1997, Maketing Strategies for fast-food restaurants: a customer view, British Food Journal, vol. 99, no. 9, pp. 318-324 Lawley, M 2006, Course Work Guide in BUS 703 Research Methods for Managers, University of the Sunshine Coast, Maroochydore DC, Australia. Marketing Week 2005, The fast food tables are turning, Marketing Week, April 28 2005, p. 38 Morgan, DL 1997, Focus Groups as Qualitative Research, 2nd edition, Sage Publications, California, USA. Morrison, D 2006, Setting up a franchise scheme, Caterer & Hotelkeeper, vol. 196, no. 4424, p. 52 Quinn, B 1998, The internationalisation process of a franchise system: An ethnographic study, Asian Pacific Journal of Marketing and Logistics, pp. 66-84 Ravneberg, C 2006, Hapa Sushi Grill eyes franchise rollout for 'nontraditional' Japanese chain, Nation's Restaurant News, vol. 40, no. 16, p. 18 Reinis, R 2001, Krispy Kreme Doughnuts: LA style, Franchising World, vol. 33, no. 8, pp. 18-19 Restaurant & Institutions 2005, Franchise forecast, Restaurant & Institutions, vol. 115, no. 8, p. 66 Sly, D 2002, The corporate face of sushi, The Advertiser, Feb 13, p. 60 Timor, M & Sipahi, S 2005, Fast-food restaurant site selection factor evaluation by the analytic hierarchy process, The Business Review, Cambridge; vol. 4, no. 1, pp. 161-167 Walsh, L 2004, Sushi breaks taste barrier, Herald Sun, 13 April, p. 31 Watson, A & Kirby, DA 2004, Public perceptions of franchising in Britain: releasing the potential, Journal of Small Business and Enterprise Development, vol. 11, no. 1, pp. 75-83 Young, JA, Hoggatt, CD & Paswan, AK 2001, Food service franchisors and their co-branding methods, Journal of Product & Brand Management, vol. 10, no. 4, pp. 218-227 Zikmund, WG 2003, Business Research Methods, 7th edition, Thomson South-Western, Ohio, USA.Niels Bøgesvang Riis 19 Assessment 4 Student no.: Appendix 1 – Structure of Literature Review Franchising o Much literature concern entry strategies when using franchising. o Growing tendency to use franchising to go international (worldwide) o Location and availability very important to create a successful franchise (UK, US, DK) o Several factors to consider when going international (US, DK, UK) Low-Fat Fast-Food Tendencies • Growing interest in low-calorie, fat-free fast-food (US, DK). • Higher socioeconomic group equals higher health awareness. (DK) • Higher education equals higher health awareness (DK). • Health and time are important time drivers (DK). • More frequent but smaller meals (DK). • Profit can be generated if companies can remove consumers’ “bad conscience” of eating fast food Æ demand for low fat fast food (DK). • Generation Y is very much into convenience food and Asian cuisine (DK). • Women healthier habits than men (DK). • Healthy lifestyle equals low-fat fastfood consumption (DK) • Sushi is becoming more and more popular in the US. • Machine made sushi very popular in the US West Coast and Manhattan, NY. Fast-Food o Growing concern about health and obesity (US, DK) o Demand for fast-food being handy, readyto-eat, tasty, convenient and good quality (US, DK). o People increasingly eat outside their home. More money spent on fast-food (US, Canada, DK). Not specific number. o Still possible to differentiate, as many factors influence purchase decision (US, Canada). o The food must be simple (DK). o Freshness very important (DK) o Normally, fast-food not eaten as a main meal (DK). o Primary single men and younger people eating fast-food (DK). o Asian cuisine increasingly popular (US) Trends identified underlining the need for low-fat sushi. Segmentation variables determining health awareness identified Immediate Discipline Objectives Identified Segmentation Variables (only in relation to health awareness) o Marital Status: Single men eat the most fast food (DK). o Social Class: Higher social group (measured by income) equals higher health awareness. (DK) o Educational level: Higher education equals higher health awareness. o Time: Health and time are important time drivers (DK) o Gender: Women healthier habits than men. o Generation: Generation Y is very much into convenience food and Asian cuisine (DK). New Objectives: 1. Identify the attitudes towards westernised, low-priced, machine made sushi in Copenhagen. Parent Disciplines GAPS!?Niels Bøgesvang Riis Assessment 4 Student no.: 20 Appendix 2 – Moderator’s Guide Opening • Thank respondents for attending and agreeing to help out with this research. • Explain the basics of a focus group: o This is going to be an informal discussion o Please only talk one at a time as the discussion is being videotaped to be able to interpret results appropriately Underline that all responses will be handled anonymously and confidential. o There is no right or wrong answers and every opinion is valued. • Describe the subject of the meeting in broad terms: o Investigating attitudes towards sushi and what influences people buying sushi. • Get respondents to do the demographic survey (See Appendix 3). • Warm up question: ‘What do you know about sushi’ Opening Issue Justification • The ones of you who likes eating sushi: o Why do you choose sushi? o Taste, time, health issues, price, status, convenience? • Exploring why people eat sushi. • Situational factors such as time and place (convenience) are investigated. • The ones of you who are not eating sushi regularly o Why? o Taste, time, health issues, price, status, convenience? • Exploring why people do not eat sushi. • Situational factors such as time and place (convenience) are investigated. • Does sushi need to have raw fish? o Would you consider buying sushi with ingredients such as marinated beef and chicken? • Exploring attitudes towards westernised sushi. Sushi made from Go Sushi recipes will be brought in – invite respondents to taste • What do you think about the taste compared to traditional sushi made with raw fish? o Pros and cons? o The ones of you who do not like traditional sushi: How is this sushi compared to traditional sushi? • Concept testing. • Exploring the possibility that prospects can be consumers who does not eat sushi today (expanding target market). • If you could have this sushi for about half the price of traditional sushi, would you consider buying it? o Does it matter that is cheap? o Does it matter that it was made on a machine if all ingredients were fresh and of high quality? • Exploring attitudes towards cheap sushi. • Exploring attitudes machine made sushi. Close • Thank respondents for participating and ask for final questions and/or comments.Niels Bøgesvang Riis Assessment 4 Student no.: 21 Appendix 3 – Demographic Survey The purpose of the demographic survey is to get demographic information which can identify possible segmentation variables having an influence on positive attitudes towards New Age Sushi. Focus will be on the segmentation variables identified in the literature review. Hence, the survey must identify: 1. Gender 2. Generation (age) 3. Civil status 4. Educational level 5. Income (identifying socioeconomic group) The following close-ended questions will be used: 1. What is your gender? o Female o Male 2. What is your year of birth? 19___ 3. What is your present civil status? o Single o De facto o Married o Other 4. What is the highest degree/diploma you have received or are pursuing? o High School o Technical School o Trade School o Associate’s degree o Bachelor’s degree o Post graduate degree o Other 5. What is your level of income? o 0 – 99,999DDK (AUD0-AUD19,999) o 100,000 – 149,999 DDK (AUD20,000 – AUD29,999) o 150,000 – 199,999 DDK (AUD30,000 – AUD39,999) o 200,000 – 249,999 DDK (AUD40,000 – AUD49,999) o 250,000 – or more (AUD50,000 – or more)Niels Bøgesvang Riis Assessment 4 Student no.: 22 Comments • Question 2 obviously identifies the age and belonging generation of the respondent but has been formulated ‘year of birth’ due to the fact that people are sensitive about their age and will feel more comfortable answering year of birth than their actual age. The use of ‘19__’ secures that respondents will not write ‘too old’ or the alike. • Question 4 on educational level has been divided into seven subgroups. Even though this is properly too detailed, these groupings can be collapsed in the succeeding data analysis if necessary. • Question 5 on level of income has been divided into groups following the groupings in Groth, Fagt & Brøndsted (2001) and Groth & Fagt (2003).