The following are additional considerations in the development of more thorough predictive analytics and statistical forecasting models of the Indian market for CoffeeTimes' beverages and sandwiches:
Advertising spending increasing overall market growth or cannibalizing competitive sales? This is a major question that needs to be addressed through more econometric modeling, specifically looking at the aggregate impact of industry-wide spending on increasing the total market size for served coffee in key segments of the market vs. forcing consolidation of the market and cannibalization of sales. This dichotomy of market direction could best first be tested from the standpoint of attempting to predict aggregate demand and consumption for coffee in India for three to five years. Next taking the approach of using a standardized z-test to compare means, the variation in advertising levels by competitor could next be used to ascertain if advertising spending was forcing customer churn, or conversely leading to the attracting of entirely new customers. The combination of regression analysis and z-test of sample means would be able to define this in greater depth.
Trending analysis of pricing...
For CoffeeTime the key to profitability is building a loyal customer base, reducing churn in the broader consumer groups that consume coffee regularly. The use of bundling of coffee, pastries and sandwiches could significantly increase the loyalty of customers and reduce customer churn. The use of z-tests to measure the null hypothesis of bundling not increasing sales and customer loyalty as measured by repeat purchasers relative to the alternative hypothesis of bundling increasing customer loyalty and reducing churn could easily be determined through a research design that isolates these variables.
Partner selection strategies based on predictive growth of CoffeeTime brand as a result of partner affiliation. Combining primary research of the perceptions of specific Indian brands with measurement of the CoffeeTime brand, a Chi-Square test of both respondent sampling populations could be used to determine if there is a statistically significant difference between how potential partners' brands are viewed relative to the CoffeeTime perception within the Indian cities initially planned for expansion.
