Tesco offers a huge variety of consumer products in around 137 retail stores, such as grocery, baby care, Tesco mobile etc. Considering Tesco mobile as a product, the main stages of the purchase decision-making process the customers would go through are as follows:

  • Need recognition

Decision-making process begins with the identification of need. That is consumer has to develop a need that is what they want and which thing will satisfy them. For example, here a consumer will recognise a need of having a mobile phone and this would be the beginning of his or her decision-making process. In short to reach a decision, one should know that why there is a need to make any kind of decision.

  • Information search

The second step in consumer decision-making process in information search, that is once the consumer identifies that what is the need or want then consumer starts the research process to identify different products which could fulfil the needs of a consumer. For example, considering the example of TESCO mobile, the consumer will look into different mobile phones and would search about different features offered by different mobile phones.

  • Evaluation of information

After researching different products, for example, mobile phones, now consumer will evaluate the information from the extracted information to identify the best option considering different features of the mobile phones.

  • Purchase decision

In this stage after identifying the best option, now consumer will purchase that particular product after being satisfied by evaluating the relevant information and would give it a try.

  • Post purchase decision

After purchasing a particular product, now consumer will identify that whether that purchase has fulfilled the requirement of the consumer and has it been the appropriate decision and whether the decision has made the consumer satisfied.

  • Explain theories of buyer behaviour in terms of Maslow’s hierarchy of needs and diffusion of innovation.

This theory is proposed by Maslow, who clearly stated in this theory about those needs which an individual needs to get motivated. This theory is divided into five stage model such as basic needs, physiological needs, safety needs, love needs and esteem needs.

At TESCO all products are offered which could satisfy the individual needs at all levels, for example for a basic needs grocery store is available, for esteem needs such as status mobile phone are offered etc. (McLeod, 2013)


This theory consists of five main behaviours of individual in buying anything, which are:Psychological needs are the lowest level of needs in Maslow hierarchy model which is also known as the physical need of any person and if not met a person cannot function properly. This needs refers to the basic needs of any human. For example, food, water, air, sleep etc.

Psychological needs are the lowest level of needs in Maslow hierarchy model which is also known as the physical need of any person and if not met a person cannot function properly. This needs refers to the basic needs of any human. For example, food, water, air, sleep etc.

Safety and security needs are the second level of needs in Maslow hierarchy of needs pyramid which refers to the security of different things. For example safety need of environment, safety in the job, safety in resources etc. And these needs arise once a person meets his/her psychological needs.

Love and belonging needs is the third level of needs in Maslow hierarchy of needs pyramid which refers to the need of belongingness. For example, love, need, affection, family etc.

Self-esteem needs the fourth level of needs in Maslow hierarchy of needs pyramid which refers to the need to feel respected by others. For example, respect, self-esteem, confidence etc.

Self-actualization needs are the highest level in Maslow hierarchy of needs pyramid which refers to that need in which a person need to get everything done on their own. For example, creativity, problem-solving etc. (Raaij & Wanwossen, 1978).


This theory was proposed by E.M. Rogers. In this theory, he clearly states that over time any idea or product which is developed is then diffused to a larger population to gain momentum. This theory also refers to the fact that with the passage of time any product or services when diffused is then adopted by major population provided that one adopts it with innovation.

Different stages for adopters are as follows:

  • Innovators
  • Early Adopters
  • Early Majority
  • Late Majority
  • laggards

Figure 1.2 (Innovation model)

Considering the innovation theory example in TESCO, there the main focus is on change and innovation and hence it is proved that now TESCO is available in around 137 countries, that is TESCO always believe in expanding. (Boston University, 2013)


Factors that affect the buyer’s behaviour at TESCO are:

  • Cultural factors

Cultural factors consist of consumer’s social class and culture. For example, TESCO is operating in 12 countries, so people living in these different countries would be having different cultures, which would directly result in their buyer behaviour.

  • Social factors

Social factors consist of consumer’s family and friends that are the external influence on buyer’s behaviour. At TESCO as there is a huge variety of catalogue, therefore, a buyers decision would change considering family and personal relations which show that family has a direct influence on individuals buying behaviour.

  • Personal factors

These factors include occupation, age etc. considering TESCO there is a variety of product lines which shows that a person will buy a certain product according to his/her need that is any women who are a housewife and a mother too would go for baby care section at TESCO, that is her personal factor so personal factors also affect the buying behaviour of each individual.

  • Psychological factors

These factors refer to an individual’s perception, belief, and learning which also affect one’s buying behaviour. At TESCO products offered should motivate the consumers to buy else, they won’t buy as per their own perception.

These are the basic four factors which affect the buying behaviour of TESCO’s consumers not only at TESCO everywhere the consumers are influenced because of these four factors and their decision to buy or not to buy a certain product, these four factors have a huge influence. Therefore, TESCO should focus and control these factors in order to maintain these factors as far as possible. (Super Professeur, 2013)

1.4 Using Tesco’s and Marks and Spencer, evaluate the relationship between brand loyalty, corporate image and repeat purchasing.


At TESCO, brand loyalty of customers resulted in the boost in sales and profits that are the customers are satisfied and go for the repeat purchase of the products because they have become loyal customers.

And this brand loyal resulted in the following advantages:

  • Increase in overall sales of TESCO
  • Powerful market research at TESCO
  • An increase in the lifetime value of customers.

Corporate image at TESCO is good which also resulted in the following factors:

  • Corporate image as a marketing tool for TESCO
  • Credibility with a good name-TESCO
  • Trust and loyalty with consumers
  • An increased business opportunities


Both, brand loyalty and corporate image is very strong and effective at Marks and Spencer. Following are the advantages:

  • Increase in market share growth
  • Ability to generate cash through margin
  • Increase in customer loyalty
  • Reduced risks
  • Premium pricing
  • Extensions
  • Increased product lines
  • innovations


2.1. Evaluate the different types of market research techniques you will use to obtain information.

Assumption: This answer is complete assumption based that is, starting a new small business with an idea of a kiosk which will be offering coffee on the way-take away.

Different types of market research techniques which could be used to obtain information are as follows:


In this will make a questionnaire and after getting it filled will go through more than one hypothesis for the data collected through those multiple questions and this method converts the data into numerical form so that calculations are easy and conclusions can be drawn easily.

Second method which could be used for the extraction of information is:


In this method there is no use of numbers and information could be collected by sharing experiences or through observations and with the help of that information analysis could be made and this kind of data is little more specific.

Both of these methods are very effective and widely used by most of the small and large sized organizations in order to extract more and authentic information. It also helps in effective analysis of the market, products, environment and different consumer behaviours.


Secondary data is a type of data which is already available somewhere that is someone has already researched about that topic and you can easily get from there also it is easy to get and cheapest. There is two main sources of secondary data which could be considered to extract the information for a new small business and those are:

2.2.1 Internal secondary data

This kind of data comes from within the organization that is the source of internal secondary data is the organization itself.

  • External secondary data

External secondary data is a type of data which is published by someone else that is the other organization. Further external secondary information could be collected through:

  • Government policies about new businesses
  • Competitor-about pricing
  • Market trend-consumer behaviour
  • General media via newspapers etc.

This method I would consider for the start-up of a new small business in the following way:

  • GOVERNMENT POLICIES: To get to know about the rules and regulations proposed by the government and also to make sure that all the processes made do not violate either of the rules.
  • COMPETITOR: To understand that what should be offered in terms of pricing, analysing competitor’s strategy would be the best source to develop the strategies for a new business.
  • MARKET TREND: market trend plays an important role as it tells about the consumer’s behaviour and the change in their demands and needs.
  • GENERAL MEDIA: It tells about the environment and an increase or decrease in the demand of customers towards a particular product. (Riley, J. 2012)


Marketing research plan is a type of plan which consists of following terms:

  • PROBLEM DEFINITION: This small is about the establishment of Coffee Kiosks under the brand name of Coffee on the way. Coffee on the way, is an innovative product, with an aim to promote the Coffee culture in the country. I will provide hot fresh coffee ready to be consumed in record time and provides the best solution for people with a busy and hectic lifestyle as it provides a quick, easy and hassle free experience to enjoy the world’s most popular beverage.
  • RESEARCH TYPE: Research would be done on the basis of secondary data, both internal and external. Considering external data, the market analysis would be done to identify the need and demand of coffee. I have forecasted that there is potential to exponentially grow the coffee market in Pakistan due to the globalization and media. And also due to the globalization and social media people preferences and lifestyle have changed considerably, these days people prefer trying new things. People nowadays are always on the way and are working extremely hard to keep up with their busy schedules. Drinking coffee lets a huge number of people keep up with their hectic lifestyles and deal with daily tasks with a clear mind. This research is solely based on observation of the market trends.
  • RESEARCH DESIGN: Other than observation I also focussed on a technique known as a questionnaire, I made a questionnaire and got it filled by a number of people (mostly professionals). Questionnaire consisted of the following questions:
  • To what age group you belong to?
  • What is your occupation?
  • How many times do you prefer a beverage in a day?
  • Do you prefer to have coffee to remain fresh?
  • Does the idea of Coffee on the Way attract you?
  • If you find a kiosk on your way to the office, would you prefer to buy it?
  • Getting coffee according to your demand on the way would satisfy you?
  • What do you think, is this a good idea? If no, they why?
  • Do you think this kind of kiosk would work considering the current conditions of the city?
  • FIELD WORK: This questionnaire was filled by 10 people.

ANALYSIS: After getting these questionnaire filled by 10 to 15 people what I founded that actually people prefer to have Coffee on the way but such idea has never been proposed therefore they would love to have coffee if such kiosks would be seen on the way. (Taylor, I. 2010)

2.4. Assess the validity and reliability of the market research findings you have got from your research.

Through the research findings that is the industry analysis and identification of market trends the information showed that there is a huge scope/market for this kind of mini project. As people living in Asia are not Coffee lovers but this trend has been changing since few years and there are many strengths of having this project which could be turned into different opportunities later on such the biggest strength of having this mini project is that it is something new that is it will be a new innovation and also that such things are not seen in Pakistan so this is something new, also this project would be reliable because there is already a huge demand for hot beverages but this would come up ease and suitability so after the survey this showed that this mini project is valid and also reliable so it’s better to move for this project. Research helped in highlighting the advantages of having such kind of mini business/project.



This assessment of market trends consists of competitors, market structure, and objectives.


The objective of this mini project is to set the standard for providing quick coffee on the way to consumers where they don’t have to waste much time from their busy schedules and at the same time get quality products with a unique taste.


The target market is an upper and middle class, mostly professionals who will buy this coffee on their way to their offices.


The competitors who will give us a good competition are Espresso, Butlers & Dunkin donuts. Because they have many branches in Karachi & Dunkin donuts have a high sale of cold coffee.


The structure of The Coffee Kiosk would look like this.

Coffee Kiosk!

3.2 Using your mini project of the restaurant or shop near Brit College, plan and carry out a competitor analysis for your intended shop or restaurant.


Competitor analysis refers to analysing the business strategy of competitors in order to have a competitive edge over competitors. Considering the competitors of this small business the analysis would consist of following terms:

  • Competitors objective
  • Competitors assumptions
  • Competitors strategy
  • Competitors capabilities

Once these things would be identified to start up a new business would become easier as there would be a bench mark or a standard to be followed and easily compared. Considering competitor analysis I will also get to know about the industry and its analysis, such as:

There are factors that can affect my coffee kiosk too and can turn into a threat, which we need to be aware of:


The economy of Pakistan is weakened, due to the fact that investors are reluctant to invest in Pakistan. Because the law & order situation in Pakistan is so fragile, that people have lost confidence in the economy.

As of 2009, Pakistan’s GDP growth rate was at 4.2%. This has declined in the recent years. The inflation rate in Pakistan stands at 12.91% in February 2011. This shows that people’s buying consumption has been affected greatly, as commodities are getting out of their reach.

The Jobless rate stands at 5.50%, which is a worrying sign for businesses.

Along with that the inflation and increase in prices of different commodities like milk, sugar etc. are continuously increasing.


As the business is more labour intensive rather than capital intensive, so there is not much effect of the technology or technology changes on our business. But still, technology may be helpful for quick communication and coordination among the partners and also for online marketing. Along with that we will procure state of the art coffee manufacturing equipment to make sure that best quality product will be provided to our customers. Efficient supply chain is a must. Inventory management is important, as we have to efficiently satisfy our customers.


Obtain the necessary permits such as a sales tax permit, food handler’s permit, and any other health-related permits. Applying for tax identification number through the Internal Revenue Service and registering our business at the state and local government level.

All these factors can be analysed by having COMPETITOR ANALYSIS that is how a competitor is focussing on these factors and is having an effective use of it.

Competitors would be all those who are providing good coffee such as Espresso, Butlers & Dunkin donuts. Because they have many branches in Karachi. (BioPortfolio,2013).

3.3 evaluate the opportunities and threats for your mini project restaurant or corner shop


Opportunities of this small Coffee kiosk are as follows:

This small project can also be expanded further in different cities and probably in different countries later on.

There is a huge market for evolving this Coffee trend in Asia, specifically Pakistan.

Furthermore, there is an opportunity to get it outsourced from different countries where the trend of Coffee is highly accepted such as the USA.

Another opportunity is to get a franchise as well so that no one else can copy the recipe or idea.


Threats of opening this Coffee kiosk all of a sudden are as follows:

Government rules and regulations implied at any time can turn into a huge threat.

The increase in taxes is another threat which will also affect the cost of Coffee.

Inflation is one of the main disadvantage, which plays a direct role in decreasing the value of money.

Failing incomes is another threat if target market didn’t respond in the way they were expected to.

A volatile market can turn into another main threat as it is difficult to stay in a stagnant market.



Assessing customer responses refers to the gathering of relevant information from your customers and identifying the suggestions which should be implemented considering the best interest of the company. The information gathered through this kind of techniques helps in improving the business and make corrective actions.

There are different techniques for assessing customer response in order to identify whether the customers are satisfied with the product or not such as survey, questionnaire, face-to-interview etc. But the techniques used by Coffee on the way are as follows:

SURVEY-Survey turned out to be one of the most effective tools to identify the response of customers towards having a Coffee kiosk on their ways to home, offices, university etc. Different people belonging from different target markets were surveyed and questioned that according to them how it feels having a Coffee just on their way with no panic. And they responded in a positive way which again showed that this is going to turn into a great idea. This tool was followed because it had no cost and also gathered different responses from the large audience.

CUSTOMER SERVICE QUESTIONNAIRE- A questionnaire was made and was filled by different people, approximately 1000 and got to know their responses through this way as well. And in the end, these questionnaires were evaluated which also showed the favour of having such Coffee on the way kiosks. This tool helped in identifying more specific responses and having all the answers in written were easy to evaluate and remember and also minimized the chances of biases.

CUSTOMER SUGGESTION BOX-This tool was also used to identify the responses of different customers. A box was made named as suggestion box in which all the customers were asked to drop their comments in so that it is easy to identify the strengths and evaluate the weaknesses.

4.2 Design and complete a customer satisfaction survey


  1. Overall I am satisfied with the coffee. 1  2  3  4  5
  1. Overall I am satisfied with the service. 1  2  3  4  5
  1. The products offered are clean and hygienic. 1  2  3  4  5
  1. The ordering process is simple and easy. 1  2  3  4  5
  1. I will repeat my purchase from coffee on the way 1  2  3  4  5
  1. Comment________________________________________________________________________________________________________________________________________

This was the questionnaire made which has a rating of 1-5 which means

1-Highly satisfied

2- Satisfied

3- Moderate

4- Low satisfaction

5- Not satisfied.

And this was then filled by people for the further review of success.

4.3Review the success of a completed survey

The questionnaire above was then filled by every customer who came to this Coffee on the way and was requested to fill this questionnaire and drop it in the drop box. There were around 1000 questionnaires filled by customers and the target was to achieve maximum ratio of 1-which refers to highly satisfied in all the questions and this is what happened in most of the questions that the customers were satisfied with the product and service both offered to them that they were more than happy with having such kind of Coffee. So this is how the survey was reviewed and the success was reviewed.


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Boston University, 2013. Diffusion of Innovation Theory [Online] Available at <>%5BAccessed 11-Jan-2014].

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Karuna. 2013. What are the sources of Secondary Data? [Online] Available at:

<; [Accessed 11-Jan-2014].

Raaij, W & Wandowossen, K. 1978. Motivation-Need Theories and Consumer Behaviour: Association for Consumer Research, 5(19780, pp. 590-595. [Online] Available at: <; [Accessed 11-Jan-2014].

Riley, J. 2012. Marketing Research – Secondary Research.   [Online] Available at:<; [Accessed 11-Jan-2014].

Saul, ML. 2013. Maslow’s Hierarchy of Needs – Simply Psychology. [Online] Available at:        < > [Accessed 11-Jan-2014].

Stat, P. 2011. Advantages of Written Questionnaires. [Online] Available at: <; [Accessed 11-Jan-2014].

Super Professeur, 2013. 4 major factors that influence consumer buyer behaviour [Online] Available at <; [Accessed 11-Jan-2014].

Taylor, I. 2010. How to Write a Market Research Plan. [Online] Available at: <; [Accessed 11-Jan-2014].



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