BTEC Unit 22 Market

Research Assignment

2P2

In this report, I am going to carry out secondary research for a mobile coffee stand to find out who is the

competition, how big is the coffee shop market, who are the target market for the mobile coffee stand, and

what products are coffee shops in the market selling. I want to find out this information by researching the

internet, Mintel reports, Newspapers, and magazines by Friday 26 February. I will need a budget to acquire

Mintel reports, Newspapers, and Magazines, whereas I will need no money to search the internet. Looking

at Mintel reports, I can see that the minimum cost related to what I am searching for (mobile coffee stands

in the UK) is about £2000, which is quite some money, but it will give me a wide knowledge on the market.

UK Coffee Shops Industry Report (Updated 2020) (mintel.com). For this report, I will need both quantitative

such as charts and statistics, and qualitative data such as written reports, newspapers, and magazines.

increase sales through new and existing customers.

There is an incredible variety of coffee shops in the market, which means that each will sell different

things to differentiate from the market and offer a unique selling point. Nowadays coffee shops, which

include mobile coffee stands and chains, will not propose only coffee so that customers will have a wide

choice. Such drinksinclude Regular Americano, Cappuccino, Café latte, Espresso, Mocha, Latte macchiato,

Frappe, Iced tea, Hot chocolate, Fresh juice. Some shops will offer food as well, such as soups, salads,

breakfast items like waffles and pancakes, pastries and desserts like muffins and brownies. What Food

Should be Offered at a Cafe? (tigerchef.com).

 1 / 3

The coffee shop market was worth £10.1 billion in 2018, according to • UK coffee shop market value 2020

| Statista, which makesit pretty big, with thousands of shops all over the UK. The major competition for a

coffee stand would be represented by big chains such as Costa, Starbucks, and Caffe Nero, respectively

with 2655 shops, 992 shops, and 683 shops, with Starbucks being the only non-British company of the

three. This meansthat Costa, Starbucks, and Caffe Nero have together 53% marketshare, which makesit

quite difficult for a new coffee shop to enter the market. How And What. Looking locally at St. Albans and

more precisely at St. Peters street which is the place where I want to locate my mobile coffee stand, we

can see that Costa Coffee has already 2 outlets there, in and near the Maltings.

 2 / 3

Caffe Nero on the other hand has got only 1 shop in St. peters street.

And Finally, Starbucks has also got one shop in St. Peters street.

Also, there are other shops in St. Peters street which offer coffee, however they offer products for a

differenttarget market. These are Pret a Manger which offer a variety of Healthy food, and Waterstones,

which despite being a bookstore has got a quite rich coffee shop at the second floor, but it is designed

specifically for people who want to enjoy a coffee while deciding which book to buy.

Even though the market is quite full of coffee shops in St. Peters street, there is no mobile coffee stand in

the zone, which will have a different target market compared to classic coffee shops. This is because people

might like coffee shops for the comfort they offer. Many people like coffee shops as they have time to sit

and maybe work on their computer while enjoying a hot or cold drink. On the other hand, my mobile coffee

Powered by qwivy(www.qwivy.org)

 3 / 3