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A​ ​Marketing​ ​Research​ ​Report​ ​for

The​ ​Librewry​ ​Cafe

Presented​ ​to:
Leslie​ ​Audrey​ ​Chiong​ ​-​ ​Pacana,​ ​MBA

In​ ​Partial​ ​Fulfillment​ ​of​ ​the​ ​Requirements​ ​in

Marketing​ ​Management​ ​(MBA​ ​118A)

Denopol,​ ​Cezar​ ​Carmel

Hernandez,​ ​Jholina​ ​Kris
​ ​Salon,​ ​Shem
Salvaloza,​ ​Marie​ ​Stelle
Ybañez,​ ​Youlah​ ​Mae

​ ​September​ ​05,​ ​2017









Participants​ ​ ​and​ ​Sampling​ ​Procedure 5

Data​ ​Gathering​ ​Instruments​ ​and​ ​Procedure 5

​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​Scoring​ ​Guidelines 5

Statistical​ ​Instruments​ ​and​ ​Procedure 7




People 16

Place/Facilities 17

Promotions 19

Price​ ​and​ ​Payment​ ​Method 20





The Librewry Café (TLC) is the haven of the community of learners, workers and

creators. The learners have a space for studying, the workers have a space for making reports

while the creators have a space for creative thinking in a serene and alluring place in the heart of

the​ ​city​ ​of​ ​Cagayan​ ​de​ ​Oro.

TLC is a family owned business which found a market niche to cater to the needs of the

Kagay-anons for a serene place to stay for 24/7 away from the hustle and bustle of city life with

good food, steady internet connection and amiable people. It is located in Hallasgo Bldg.,

Pabayo-Tirso Neri St., Cagayan de Oro City with an affordable hourly rate of P20.00, daily rate

of​ ​P200.00,​ ​weekly​ ​rate​ ​of​ ​P1,500.00​ ​and​ ​monthly​ ​rate​ ​of​ ​P4,500.00.

TLC was founded as a result of the fusion of the two researches of the son and daughter

of owners. The research was about the viability of a co-working space and a study lounge

themed​ ​café.

Its first branch in Cagayan de Oro City was located at Don Apolinar Velez St in front of

Sentro 1850 and beside Redtail Shrimps and More. They operated there for just over a year as

the Management was able to see the need and opportunity for their café to improve and grow.

They were contemplating either to branch out to Iligan or to transfer to a more strategic location

in the heart of the city. As a result of their thorough study they seemed that branching out to

Iligan​ ​would​ ​be​ ​riskier,​ ​thus,​ ​the​ ​transfer​ ​of​ ​location​ ​prevailed.

TLC’s direct competitors include The New Office, Cuppa Workspace and The Space.

These are the cafés we named in this survey for comparison purposes and are the cafes with the

same​ ​theme,​ ​as​ ​co-working​ ​space,​ ​with​ ​the​ ​TLC.


The research presented addresses the problem on how to increase revenue/sales for The

Librewry Cafe (TLC) in a competitive and emerging market by strengthening company branding

through the utilization of marketing mix. Aside from that, in order to increase its sales, the

research​ ​would​ ​like​ ​to​ ​improve​ ​the​ ​business’s​ ​ ​customer​ ​satisfaction​ ​level.

Previous study conducted by the owner himself shows that the kind of business they

wanted to venture into will be attractive and profitable in the market. They made a market study

that aimed to know on how they can come up with its costing strategy for the business and how

they can promote it to the public at a minimal cost. Since they recently transferred its location

and considering that their competitors are doing well too, TLC should give extra effort to be

more competitive and should be proactive in its promotions and marketing strategies. Knowing

these factors will assist the business to increase satisfaction level, these will later translate into

increased revenue. Thus, it becomes more crucial for TLC to gain more insights about customer

attitudes​ ​and​ ​preferences,​ ​as​ ​well​ ​as​ ​to​ ​influence​ ​their​ ​decision-making​ ​process.


This market research proposed to examine the customer’s behavior toward The Librewry

Cafe​ ​(TLC).​ ​Specifically,​ ​it​ ​sought​ ​to​ ​resolve​ ​the​ ​following:

1. To classify TLC customers according to various socio-demographic factors such as sex,

age, marital status, employment status and estimated individual monthly income &


2. To​ ​identify​ ​the​ ​factors​ ​that​ ​are​ ​given​ ​more​ ​importance​ ​by​ ​TLC​ ​ ​customers.

3. To​ ​identify​ ​the​ ​level​ ​of​ ​satisfaction​ ​of​ ​TLC’s​ ​customers.

4. To determine the opportunities for improvement of currently applied strategies employed

by​ ​the​ ​management.

5. To suggest and recommend strategies in order to improve the Librewry and eventually

increase​ ​revenue.

All survey questions were able to contribute to answering these questions by revealing

some​ ​of​ ​the​ ​customers’​ ​satisfaction,​ ​preferences​ ​and​ ​suggestions.


This market research tried to analyze the TLC customers’ satisfaction level on the factors

identified. It also sought to know the customers’ behavior and segment them according to

socio-demographic​ ​variables.

The researchers first interviewed the TLC owner Mr. Philip Flores to know about the

cafe’s history and its marketing strategies. The general approach was to target a number of TLC

customers that the researchers believed would satisfy the research objectives. To speed up the

data collection process, the researchers employed an online survey, delivered via social media

sites. The researchers then interpret and analyze the results to identify potential opportunities and

risks​ ​for​ ​TLC​ ​marketing​ ​mix.

The data instrument used was a structured, mainly close ended online questionnaire

designed​ ​and​ ​administered​ ​to​ ​obtain​ ​the​ ​necessary​ ​data​ ​pertaining​ ​to​ ​the​ ​factors​ ​under​ ​study.

Participants​ ​and​ ​Sampling​ ​Procedure

Participants were the customers of TLC. The researchers used Facebook to identify these

individuals and were given survey forms for them to answer.The researchers used convenience

sampling​ ​and​ ​ended​ ​up​ ​with​ ​a​ ​total​ ​of​ ​one​ ​hundred​ ​(100)​ ​participants​ ​to​ ​answer​ ​the​ ​survey.

Data​ ​Gathering​ ​Instruments​ ​and​ ​Procedure

The interview conducted with the owner helped the researchers in constructing the survey

questions. This market research used an online survey questionnaire made through Google

Forms. It broadly relied on primary information collected from the survey to answer the problem

questions. The questions were developed by the researchers to measure the level of satisfaction

of the customers with regards to the mentioned factors using a Likert-type format. The

respondents were also asked to indicate the level of importance of these factors in choosing a

working​ ​place​ ​to​ ​stay.​ ​A​ ​copy​ ​of​ ​the​ ​survey​ ​questionnaire​ ​can​ ​be​ ​found​ ​in​ ​Appendix​ ​1.

Scoring​ ​Guidelines

The questionnaire used in this research stated various factors where the participants

measured them according to the level of importance, using a 5-point Likert scale. The 5-point

scale used for the data analysis varied from very important (5), important (4), moderately

important (3), slightly important (2), and not important (1). Table 1 summarizes the scoring

system​ ​with​ ​the​ ​corresponding​ ​descriptions.

Table​ ​1:​ ​Scoring​ ​System​ ​-​ ​Rating​ ​of​ ​Factors

Points Description

5 ​ ​Very​ ​Important

4 ​ ​Important

3 Moderately​ ​Important

2 Slightly​ ​Important

1 Not​ ​Important

The questionnaire also asked the participants to rate TLC based on the factors provided

employing a 5-point Likert scale. The 5-point scale used for the data analysis varied from highly

satisfied (5), satisfied (4), neither satisfied nor dissatisfied (3), dissatisfied (2), and highly

dissatisfied (1). This eased the process of analyzing the data from the participants. Table 2

summarizes​ ​the​ ​scoring​ ​system​ ​with​ ​the​ ​corresponding​ ​descriptions.

Table​ ​2:​ ​Scoring​ ​System​ ​-​ ​The​ ​Librewry​ ​Cafe​ ​Rating

Points Description

5 Highly​ ​Satisfied

4 Satisfied

3 Neither​ ​Satisfied​ ​nor​ ​Dissatisfied

2 Dissatisfied

1 Highly​ ​Dissatisfied

Statistical​ ​Instruments​ ​and​ ​Procedure

Based on the nature of the research questions and collected data, descriptive statistics was

used in this market research. The results from the survey were encoded in the Microsoft Excel.

On the other hand, the researchers used frequency counts and percentage distribution in

determining the profile of the participants in terms of sex, age, marital status, employment status

and estimated monthly individual income and allowances. ​To visualize data, the researchers

used​ ​data​ ​tables,​ ​pie​ ​charts​ ​and​ ​bar​ ​graphs.


This​ ​section​ ​shows​ ​the​ ​survey​ ​results,​ ​analysis​ ​and​ ​related​ ​graphs.

Data​ ​Analysis:​ ​Demographics

Figure 1 shows the participants categorized according to sex. Of the 100 survey

participants, sixty two (62) were female and thirty eight (38) were men. This simply means that

more​ ​women​ ​go​ ​to​ ​The​ ​Librewry​ ​Cafe​ ​than​ ​men.

Figure 2 shows that forty two percent (42%) of the survey participants were aged 26 - 34

years old and thirty five percent (35%) were 21 - 25 years old. Meanwhile twenty two percent

(22%)​ ​were​ ​aged​ ​16​ ​-​ ​20​ ​and​ ​one​ ​(1)​ ​ ​participant​ ​was​ ​below​ ​15​ ​years​ ​old.

Figure 3 shows that ninety five percent (95%) of the participants were single and only

five​ ​percent​ ​(5%)​ ​were​ ​married.

On the other hand, participants were also asked about their employment status. Majority

of the them were employed with sixty percent (60%) of the survey sample. Twenty nine percent

(29%) were students, eight percent (8%) were self-employed while three percent (3%) answered

they​ ​are​ ​unemployed​ ​as​ ​of​ ​the​ ​moment.

Figure 5 shows more varied answers when participants categorized themselves according

to their monthly income and allowances. Majority of the participants have below P 10,000

income and allowances while twenty percent (20%) earned P 15,001 to P 20,000 a month,

nineteen percent (19%) have a monthly income and allowances of P 20,000 to P 30,000 while

sixteen percent (16%) earned P 10,001 to P 15,000 monthly. Participants who earned more than

P 30,000 per month were only twelve percent (12%) from which seven percent (7%) have P

30,001 to P 40,000 income and allowances and five percent (5%) earned more than P 40,000.

While this was only a sample of the whole population of TLC customers, the survey results will

eventually help the management in positioning themselves in the market. Moreover, the spending


Data​ ​Analysis:​ ​Customer​ ​Experience

Figure 6 shows the participants’ frequency of visits. Out of 100 participants, almost half

with forty four percent (44%) of them said that they rarely visit The Librewry Cafe. Moreover,

twenty percent (20%) said they visit two to three times a month, twelve percent (12%) visit once

a month and eleven percent (11%) answered more than once a week. There were also

participants who have made The Librewry Cafe a part of their week when nine (9) out of one

hundred (100) answered that they visit once a week. While there were three percent (3%) who

responded they visit only every two months, only one percent (1%) have answered he visit daily,

It is now a challenge to the management to boost foot customer traffic and win customer’s


Moving forward, the researchers asked the participants’ reasons for visiting and staying

in TLC. This would allow the management to improve their services based on the survey

responses. The participants were given six options and they were asked to tick those options

which are applicable to them. Figure 7 shows that eighty (80) participants answered they visit

TLC to do school or work related stuffs. This survey confirmed TLC as a working space as more

people visit to do work and school related activities. On the other hand, forty four (44)

responded they visit to connect to the free wifi, twenty seven (27) answered to relax or sleep and

nineteen (19) said they visit to read books found in the TLC book shelves. Meanwhile, seventeen

(17) were enjoying the food and beverages in the cafe as they answered they visit to dine. Four

(4) of the participants answered others and specified that they visit TLC to play board games

found​ ​in​ ​the​ ​cafe,​ ​to​ ​write​ ​essays,​ ​to​ ​do​ ​some​ ​planning​ ​and​ ​to​ ​visit​ ​a​ ​friend.

The survey questionnaire also included a section where ten factors were enumerated and

the participants have to rate them according to the level of importance.These factors were the

following: accessibility of the place, overall ambiance, food quality, food affordability, service

quality, affordability of hourly rate, store promotions, social media marketing, food waiting time

and payment method. Figure 8 shows a stacked bar graph to summarize the results. The graph

shows that the top five most important to customers are: affordability of hourly rate with eighty

eight (88) votes, accessibility of the place with eighty seven (87) votes, overall ambiance with

eighty five (85) votes, service quality with seventy-seven (77) votes and food affordability with

(52)​ ​votes.

While the participants were asked about the level of importance of the ten factors

identified, the survey questionnaire also included a customer’s rating for TLC based on these

factors. The results were summarized in another stacked bar graph as shown in Figure 9. Based

on the survey, the participants were highly satisfied with TLC’s accessibility and overall

ambiance with fifty nine (59) and fifty two (52) votes respectively. While most participants were

satisfied with the other factors, it is striking to note that there were also a number of participants

who answered ​Neither Satisfied nor Dissatisfied to the factors like food waiting time, food

affordability and food quality. It is important for the management to know these so they can

review​ ​and​ ​improve​ ​their​ ​operations.

The survey questionnaire concluded by asking the participants if they would recommend

TLC to others based on their experiences. Figure 10 shows that most respondents would love to

recommend it to others scoring a dominant ninety five percent (95%) of the sample size. The five

participants voted no by saying that they are not satisfied with the ambiance as they find TLC

noisy and not conducive for studying. One respondent also said that he considered coffee shops

better​ ​for​ ​its​ ​cost​ ​benefit.


Based​ ​on​ ​the​ ​analysis,​ ​the​ ​researchers​ ​can​ ​assert​ ​the​ ​following​ ​conclusions:

● Most​ ​customers​ ​rarely​ ​visit​ ​The​ ​Librewry​ ​Cafe.

● Most​ ​customers​ ​were​ ​employed​ ​single​ ​women​ ​with​ ​ages​ ​between​ ​26​ ​and​ ​34​ ​y/o.

● TLC​ ​customers​ ​have​ ​varied​ ​monthly​ ​income​ ​and​ ​allowances.

● Customers give more importance to the cafe’s accessibility, overall ambiance and

affordability​ ​of​ ​TLC​ ​hourly​ ​rate.

● Some​ ​customers​ ​feel​ ​that​ ​TLC​ ​foods​ ​and​ ​beverages​ ​are​ ​not​ ​priced​ ​economically.

● There is a need for management to reassess the food quality and price. (The list of

their​ ​current​ ​food​ ​ ​menu​ ​is​ ​on​ ​Exhibit​ ​1)

● There is a need to highlight the place as a ​silent working space thus the name The

Librewry​ ​Cafe.

● Majority of the customers are satisfied with TLC and will surely recommend the cafe

to​ ​other​ ​people.


In this section, the researchers provided specific recommendations by category based on

the​ ​findings​ ​of​ ​the​ ​report.


People are what matter most in business. They are the ultimate consumers of every

product and service. Thus it is only important for every business to constantly find ways to

attract people. The following are marketing strategies that the management of TLC can


1. Paper​ ​Loyalty​ ​Stamp​ ​Card

Undeniably, customers love to be rewarded. One strategy that TLC could use in order to

attract customers to regularly visit and stay in the café is the implementation of ​Customer

Loyalty Program like ​Paper Loyalty Stamp Card. ​In every visit in the TLC paired with

minimum three (3) hours of stay, the customers will get a stamp on their cards. Upon reaching

the maximum stamps set by TLC, they will be rewarded with another hour/s of stay or get free

drinks, coffee or whatever the TLC is offering. This paper-based loyalty cards are easy to

implement and relatively low cost for a business. The business only needs to cover the cost of

printing​ ​the​ ​cards.

2. Membership​ ​Perks

A great idea towards capturing that regular customer is by offering an economically

viable membership plans such as but not limited to an annual or monthly membership. This will

add​ ​in​ ​the​ ​pull​ ​of​ ​money​ ​especially​ ​for​ ​times​ ​when​ ​there​ ​will​ ​be​ ​low​ ​client​ ​traffic.

3. Free​ ​membership​ ​for​ ​celebrities​ ​or​ ​internet​ ​sensations

Celebrities, idols or well known individuals have a pool of avid supporters who always

looks up to them. Their supporters follow almost all of the things their idols are doing and as

well as go to the places that they have been. This copycat behavior of the fans may work on the

favor of the TLC if they offer free membership to the celebrities or the internet sensations as this

could​ ​increase​ ​client​ ​traffic​ ​and​ ​is​ ​also​ ​a​ ​good​ ​advertising​ ​strategy.

4. Targeting​ ​the​ ​wanderers

TLC can also cater to the needs of wanderers or travellers. People who are not from

Cagayan de Oro City who have early flights at Laguindingan Airport can stay for a while in the

cafe to relax, drink coffee, wait for their companions to arrive and take a quick nap. In that way,

20​ ​pesos​ ​per​ ​hour​ ​isn’t​ ​a​ ​bad​ ​idea​ ​after​ ​all.

5.​ ​ ​Student​ ​discounts

Since most students have no income yet but would like to stay and do school related

stuffs in The Librewry Cafe, the management of TLC may opt to attract them by giving a

discount.​ ​They​ ​just​ ​have​ ​to​ ​present​ ​their​ ​school​ ​ID’s​ ​in​ ​order​ ​to​ ​avail​ ​of​ ​the​ ​perk.


Customers​ ​also​ ​consider​ ​place​ ​and​ ​facilities​ ​in​ ​deciding​ ​where​ ​to​ ​stay​ ​and​ ​work.

1. Internet​ ​Connection

It ​is one of the prime factors that can attract people. TLC should have fast and reliable

internet connection that can accommodate all users at the same time. They can add hubs to

improve​ ​it.​ ​Fast​ ​connection​ ​can​ ​make​ ​work/school​ ​stuffs​ ​easier​ ​and​ ​faster.

2. Larger​ ​working​ ​space

People need space, more space. The current setup of the cafe is not enough to cater all

customers.​ ​They​ ​should​ ​put​ ​additional​ ​extension.

3. Power​ ​Generators

Since TLC also provide free use of electricity, they should provide generators in cases of

unannounced​ ​power​ ​interruptions​ ​so​ ​that​ ​customers​ ​can​ ​continue​ ​on​ ​what​ ​they​ ​are​ ​working​ ​on.

4. Sound​ ​proof​ ​discussion​ ​rooms

TLC already has a discussion room in their new location. It must be sound proof in order

not​ ​to​ ​disturb​ ​others​ ​working​ ​outside.

5. Guideline​ ​posters

TLC should put on a sign board or orientation guidelines/poster ​for the new customers of

the​ ​cafe.​ ​With​ ​this,​ ​they​ ​will​ ​know​ ​what​ ​are​ ​the​ ​do’s​ ​and​ ​dont’s​ ​inside​ ​the​ ​cafe​ ​premises.

6. Freedom​ ​wall

TLC can put a freedom wall ​wherein people can write their experiences in the cafe and

any random thoughts or feelings they have in a day. It will also serve as an outlet for the

customers to express their customer satisfaction level in the place and/or their personal

day-to-day​ ​encounters.

7. Computer​ ​for​ ​all

For walk in customers who need to browse the internet, TLC should atleast put one (1)

or​ ​two​ ​(2)​ ​units​ ​of​ ​computers​ ​for​ ​public​ ​use.

8. Provide​ ​blinds/​ ​curtain​ ​on​ ​the​ ​glass​ ​windows

The new TLC has a big glass window design and is situated where it is directly hit by the

sun during the afternoons. This in turn makes the customers uncomfortable while inside the

premise.​ ​TLC​ ​should​ ​put​ ​blind​ ​curtains​ ​to​ ​ease​ ​the​ ​discomfort.


Promotion can be one of the best tools for attracting new customers or retaining the older

ones.​ ​TLC​ ​should​ ​include​ ​effective​ ​and​ ​efficient​ ​promotions​ ​to​ ​attract​ ​people.

1. 5​ ​hours​ ​stay​ ​+​ ​1​ ​hour​ ​free!

TLC should be extra creative with regards to its sales promotions. One to consider is the

grant of privilege of freely staying for another hour to their customers if they will spend at least

five​ ​(5)​ ​hours​ ​in​ ​the​ ​café​ ​(​ ​Every​ ​5​ ​Hours​ ​Stay,​ ​You’ll​ ​get​ ​1​ ​hour​ ​Free!​).

2. Redeemable​ ​Points:​ ​ ​1​ ​Hour​ ​=​ ​1​ ​Point

In addition to an hour of free stay, TLC should have a paper-based or system-based

tracking application where customers’ information and visitations are regularly updated. Every

time the customers will visit the café and spend one-hour, their records on the TLC will

automatically be credited to an equivalent of one point. These points will be accumulated and

customers are entitled to redeem the said points. TLC should prepare list of rewards with

equivalent​ ​number​ ​of​ ​points​ ​needed​ ​to​ ​redeem​ ​such.

​ ​ ​ ​ ​ ​ ​3. Social​ ​advertising​ ​scheme

Social advertising is a thing right now. It is because of the increasing number of

millennials that are considered potential customers. So businesses are switching from traditional

to online advertising. Social medias are used in order to advertise products and services and

eventually increase sales. TLC has facebook page with 9,326 likes and instagram account that

has 693 followers. These social media accounts are two of the most effective tools in introducing

new​ ​services​ ​and​ ​exciting​ ​activities​ ​that​ ​customers​ ​can​ ​avail​ ​and​ ​participate​ ​in.

4. The​ ​Librewry​ ​Cafe​ ​contests

In connection to social advertising scheme, TLC can post in their social media accounts

the winners of various contests. The management can announce various activities that the

customers can participate in. This marketing strategy will make the customers more engaged to

TLC​ ​thus​ ​resulting​ ​to​ ​customer​ ​loyalty.​ ​The​ ​following​ ​are​ ​examples​ ​of​ ​such​ ​activities:

● Random​ ​winner​ ​for​ ​“post​ ​of​ ​the​ ​week”

● Winner​ ​for​ ​“Big​ ​spender”

● “Owl​ ​of​ ​the​ ​Week”

Price​ ​and​ ​Payment​ ​Method

1. Happy​ ​Hour

In the 24 hours a day operation there will really be a time wherein client traffic will be

very low. This would mean less inflow of money to the TLC. One of way the many ways in

combating this problem is through having a Happy Hour. Happy hour is the time of the day

where TLC will offer discounted price in hopes to increase client traffic during that time of the


2.​ ​Offer​ ​budget​ ​meals

A business can compete with competitors through pricing. TLC can reassess their menu

and be able to offer affordable meals so customers can stay in the cafe and dine without spending

a lot. While overall ambiance and store promotions are good ways to attract customers, one must

not forget the affordability of products and services. Thus TLC must offer budget meals to cater

all​ ​customers​ ​across​ ​income​ ​ranges.

​ ​ ​ ​ ​ ​ ​3. Accepts​ ​debit​ ​card​ ​/​ ​non​ ​cash​ ​payment​ ​method

In this age and time, payment through cards is on trend for it is handy, more secure and

hassle-free so finding ways to cater to people who barely brings cash would be helpful in tapping

this kind of market. Cashless payment may include acceptance of debit or credit cards or TLCs

own​ ​loadable​ ​card.

APPENDIX​ ​1:​ ​The​ ​Online​ ​Survey​ ​Questionnaire