Below are the instructions for BSBMKG506 – Task 2:

Procedure

Read the case study at Appendix 1, and Project Scenario (both below)

Prepare a detailed Business Report to Red Chilli Restaurant and supplies that includes your documented full Market Research Plan describing the project scope, market research objectives, and a detailed plan on how the research will be conducted, time requirements and budget for the market research to be undertaken.

The report must include the following sections:

Report Title Page
Provide the name of the project, the researcher and research organisation; also include the client’s details.
Introduction
The introduction should include:

A definition of market research; and explain how market research can contribute the operations of the organisation
A statement of the case study organisation’s problem; and some background about the organisation and the issue.

The Market Research Plan

Project Scope from the Draft Research Proposal

The project scope should include full details of the following:

1. The 5-step process; how you identified and defined the market research problem?

2. The purpose of the research?

a statement giving justification for the research

3. Proposed timeframe for completion?

document the time required and available.
Also include here the process undertaken to review and determine the objectives against the initial brief before getting the clients approval?
Whom you consulted with?

4. The reviewed Statement of Market Research Needs

The research objectives should be clearly labelled and identified in this section.
5. Market Research Plan details:

5.1 Research locations

Where will your research and researchers be based?
describe possible research locations

5.2 Research methodologies

Is your planned research, exploratory, descriptive or causal?
What data collection methods will you use?

5.3 Sources of research data

Are you planning to collect primary research?
What is the profile of your primary data sources?
What are your sources of secondary research?
What sample size and method do you think will be required?
explain the sample size and nature of your sample

5.4 Required resources

identify the human, financial and physical resources required and available
identify any external market research assistance that will be required

Timelines, budget, milestones and deliverables
Provide full and complete details of:

the key milestones or goals of the project
include an overall project duration,
the cost estimate and the expected date that the results will be available.

6. Obtain approval:

How will you gain approval for the plan?

Project Scenario

You are the Market Research Manager at Perfect Market Research a company that helps small businesses to find solution to their market research problems. Nick and Elise, the owners of Red Chilli Restaurant and supplies, have approached you to help them find solutions for them. They have never approached a market research company previously and have asked you how market research can help them. They brief you on the problem and you suggest market research as a first step on the road to establishing a solution for their problem.

You explain that the first step in the market research process is to read/take the client’s brief > then at step 2 the market research company will draft a research proposal – once this has been approved by the client we move on to > stage 3 where you will prepare the Market Research Plan –this stage is often contended by 2 or more research companies, only the company that prepares the best market research plan will proceed to stage 4 once it has been approved by the client > stage 4 is to do the actual Market research.

Note: Based on the client’s brief in Appendix 1– you have already prepared a draft research proposal also known as the preliminary project scope for Red Chilli Restaurant and supplies that established the following:
An outline of the overall objectives of the market research
An initial plan on how the research will be conducted
An outline of time requirements.

Nick and Elise have accepted your draft research proposal and have given you the go ahead to advance to stage 3 which is to prepare a full Market Research Plan for them.

As you will be competing with 2 other Research companies for the opportunity to conduct the actual market research at stage 4, your Market Research Plan must stand out from your competitors.

Note: For this unit of competence you are not required to perform stage 4 i.e. the actual market research.

Appendix 1 – Case Study

Nick and his wife, Elise have been in the Restaurant and grocery supply business for the last 13 years. They have Asian restaurant and they also supply groceries to other restaurants in the city. Nick supervises the Restaurant part of the business, while Elise does the administration and bookkeeping and oversees the grocery supply business. Their employees comprise two full-time chefs, a part-time delivery boy and two part-time wait staff members. The trading hours are as follows:

Mon – Wed 12 pm – 10 pm
Thurs – Fri 12 pm – 11 pm
Sat – Sun 12 pm – 10 pm

The business is located in a main road, opposite a small suburban shopping centre that includes a supermarket, department store, café and 12 specialty shops. About 2 kilometres down the road is a large Bunning’s store.

The business has prospered over the years through a steady stream of customers who are happy with the quality and cost of the food. Nick has a good rapport with most of them and takes a keen interest in making sure they are happy with service and quality of food. Their restaurant offers Asian food during lunch and dinner and they are famous for their Indian food and Thai food.

Five years ago, Nick and Elise opened a small café inside the shopping centre. They now have two full-time staff and an additional part-time staff member who works over lunch-time and on weekends; although during the school holidays Nick’s daughter also assists in the café. A new café opened for business 18 months ago around the corner, in a small strip of shops attached to a business park. This new operation is open Monday – Friday from 7am–3pm offering breakfast and lunch, specialising in gourmet food and beverages.

About three years ago, Nick and Elise decided to extend the café operations to include a larger lunch menu, more tables and extended the trading hours of the café. The café offers takeaway food as well as sit-in dining and the menu includes a variety of beverages, made-to-order sandwiches, salads, gourmet pies/sausages rolls, quiches and savoury slices, chips/wedges, cakes and slices, ice creams and sorbets, a kid’s menu and soups and casseroles in winter.

The whole concept was a good one however their total business net profit has dropped steadily over the last two years, although gross revenue remains acceptable. They are at a loss to identify what has gone wrong and decide to seek help to redress the situation.

Nick and Elise seek advice from you. They brief you on the problem and you suggest market research as a first step on the road to establishing a solution for their problem.

You have been supplied with basic sales performance data for the last three years that shows the following:
Grocery sales has dropped by 5% in the last two years. These sales of these products currently contribute 51% to overall profits.
Restaurant sales have also dropped by 5%, although the last year saw an increase in sale during month of December and January because of Christmas and New Year parties. These products currently contribute 34% to overall profits.

Café trade has been steadily increasing for the last three years and as result profits from this have been growing at a rate of 2–3% per annum, currently contributing 15% to the overall profit of the business.

Additional Information

On acceptance of your draft research proposal DA Gardening supplies has indicated that they have a maximum budget of AUD$50,000.00 to spend on this project; and wish to receive your report within the 6-week time frame.