Management Dilemma:

In the fiercely competitive Indian coffee market, established mass-market brands like Nescafe and Bru
are grappling with a formidable challenge: the rising prominence of niche coffee brands (eg: Sleepy Owl
and Country Bean). This paradigm shift underscores a profound transformation in consumer preferences
and presents a pressing management dilemma for mass market brands: how to effectively navigate and
counter the emerging competition from niche brands.

Research Questions:

1. What key factors motivate Indian consumers to switch from mass-market coffee brands like Nescafe
and Bru to niche brands such as Country Bean and Sleepy Owl?

2. How do Indian consumers perceive mass-market coffee brands compared to niche brands in terms of
trust, innovation, and quality associations?

3. Which demographic segments within the Indian market exhibit the strongest inclination towards niche
coffee brands?

4. To what extent can established mass-market coffee brands successfully integrate elements of niche
branding, such as sustainability, transparency, and personalization, without diluting their core brand
identity?

Expected contribution from the work:

The research aims to understand consumer motivations for shifting preferences, perceptions of mass
versus niche brands, demographic segments most inclined towards niche brands, and the viability of
integrating niche brand elements by mass-market brands. It identifies potential strategies for mass-
market brands to remain competitive, such as emphasizing quality and authenticity, innovating product
offerings, enhancing customer engagement, expanding distribution channels, differentiating brand
positioning, and leveraging influencer marketing.

Part 1: Demographics

1. What is your age?

Under 18 18-24 25-34 35-44 45-54 55-64 65+

Relevance: Age is a crucial demographic factor that may influence coffee consumption habits and
preferences.

2. What is your gender?

Female Male Others Prefer not say

Relevance: Gender can provide insights into consumption patterns and brand preferences.

3. What is your highest level of education?

10th 12th Bachelor's degree Master’s degree PHD

Relevance: Education level may correlate with awareness of brand qualities and preferences.
4. What is your current occupation?

Student Employed (full- Self-employed Unemployed Retired

time/part-time

Relevance: Occupation could influence consumption habits due to lifestyle differences.

5. What is your annual household income?

<= 5 Lakhs >5 Lakhs & >15 Lakhs & >25 Lakhs & >35 Lakhs & >45 Lakhs
<=15 Lakhs <=25 Lakhs <=35 Lakhs <=45 Lakhs

Relevance: Income level can affect affordability and choice of coffee brands.

Part 2: Coffee Consumption Habits

6. How often do you consume coffee?

Daily Few times a week Once a week Less than once a week

Relevance: Frequency of consumption could indicate the level of brand loyalty and preference.

7. What type of coffee do you usually consume? (Multiple choice)

Instant coffee Ground coffee Whole bean coffee Coffee pods/capsules

Relevance: The type of coffee consumed can indicate preferences for convenience vs. quality.

8. Where do you usually buy your coffee?

Supermarket/grocery store Specialty coffee shop Online

Relevance: Purchase location can reflect on brand loyalty and preference for niche or mainstream
brands.

Part 3: Value-Based Questions

9. Are the following factors important for your choice of coffee brand?

Factor Level of importance

Price Strongly Slightly Neutral Slightly agree Strongly
Disagree disagree Agree
Flavor Strongly Slightly Neutral Slightly agree Strongly
Disagree disagree Agree
Brand reputation Strongly Slightly Neutral Slightly agree Strongly
Disagree disagree Agree
Ethical/sustainable Strongly Slightly Neutral Slightly agree Strongly
sourcing Disagree disagree Agree
Packaging Strongly Slightly Neutral Slightly agree Strongly
Disagree disagree Agree

Relevance: Understanding what drives brand choice helps in identifying consumer segments.

10. How much are you willing to spend on a 250 gram coffee packet?
 Below Rs. 250 Rs. 251 to Rs. 500 Rs. 501 to Rs. 750 Rs. 751 to Rs. 1000 Above Rs.1000

Relevance: Willingness to spend can indicate preference for premium (niche) versus mainstream brands.

11. On a scale of 1 to 5, how important is brand authenticity to you when choosing coffee?

Strongly Not Slightly Not Neutral Slightly important Strongly

important important important

Relevance: Measures the value placed on authenticity, potentially differentiating niche from mainstream
brands.

12. On a scale of 1 to 5, how important is ethical sourcing to you?

1 (Not important) to 5 (Very important)

Relevance: Ethical sourcing is a key factor for many consumers, often more associated with niche
brands.

13. On a scale of 1 to 5, how much do social media influence your coffee purchase decisions?

1 (Not important) to 5 (Very important)

Relevance: Understanding the impact of social media on brand discovery and loyalty.

14. How likely are you to try a new coffee brand based on a recommendation?

Very unlikely Somewhat Neutral Somewhat likely Very likely

unlikely

Relevance: Measures openness to brand switching and influence of word-of-mouth.

15. On a scale of 1 to 5, how important is convenience (e.g., ease of purchase, preparation) in your
coffee choice? 1 (Not important) to 5 (Very important)

Relevance: Convenience might favor instant and pod coffees, affecting brand preferences, with the
survey questionnaire based on the document's themes and insights.

16. Do you prefer coffee brands that align with your personal values (e.g., environmental
sustainability, fair trade)?

Yes No Unsure

Relevance: This question aims to understand the impact of personal values on brand selection, which is
crucial for distinguishing between niche and mainstream brand preferences.

17. On a scale of 1 to 5, how important are flavor and product variety to you when selecting a coffee
brand? 1 (Not important) to 5 (Very important)

Relevance: Flavor and variety can be significant factors for consumers seeking unique experiences, often
provided by niche brands.

18. How do you generally consume your coffee? (Multiple choice)

At home At work/school In cafes/coffee shops On the go

Relevance: Consumption context may influence preference for certain types of coffee or brands,
highlighting lifestyle influences on consumption habits.

19. Which of the following statements best describes your approach to new coffee products?

Options:

• I prefer sticking with brands I know and trust.

• I'm open to trying new brands, especially if they offer something unique.
• I frequently switch between brands based on deals and promotions.

Relevance: Identifies brand loyalty vs. experimentation, indicating potential openness to niche brands.

20. On a scale of 1 to 5, how important is the coffee's origin (e.g., country, farm) to you?

1 (Not important) to 5 (Very important)

Relevance: The origin is often a key selling point for niche brands focusing on authenticity and quality.

21. Have social media influencers ever influenced your coffee purchase decisions?

Yes No

Relevance: Measures the impact of influencer marketing, which is a strategy often employed by niche
brands.

22. Do you consider the environmental impact of the coffee products you purchase (e.g., packaging,
production practices)?

Always Sometimes Rarely Never

Relevance: Environmental considerations are increasingly important to consumers, potentially favoring

brands with sustainable practices.

23. On a scale of 1 to 5, how likely are you to pay a premium for coffee that is advertised as being
sustainably sourced or organic?

1 (Very unlikely) to 5 (Very likely)

Relevance: Willingness to pay a premium for sustainability or organic certification can indicate
preference segments and value alignment.

24. On a scale of 1 to 5, how important is a coffee brand's story or identity to you?

1 (Not important) to 5 (Very important)

Relevance: Brand story and identity can significantly influence consumer preference, especially among
niche brands that emphasize their unique background and values.

25. Do you seek out coffee brands that actively engage with their customers (e.g., through social
media and events)?

Yes No Sometimes
Relevance: Engagement can enhance brand loyalty and customer satisfaction, aspects that may be more
pronounced in niche brands.

These questions are designed to gather comprehensive data on consumer demographics, coffee
consumption habits, and value-based preferences. This information will be instrumental in conducting
cluster and factor analysis, allowing for a deeper understanding of the consumer segments and factors
influencing coffee brand choices.