Professional Documents
Culture Documents
Prepared by:
Jimmy Cao
Joshua Caldwell
Shu Yi Lu
Yu Koon, J.K.
Table of Content
Executive Summary
Introduction
Research Objectives
Research Design
Findings
Statistical Analysis
Main Takeaways
Observation
Summary
Limitations of Study
Appendix A
Survey Questions
Demographic Questions
Appendix B
Survey Sample
Karls Macaroons is a company that excels in baking macaroons for a reasonable price.
The business is based in Dallas, TX and their macaroons are home baked from scratch and ready
to be delivered throughout the Dallas Fort Worth area. Karls Macaroons founder is a University
of Texas at Dallas student named Karl Ngantcha-Mbagna. Karl has had a passion for baking
since the age of 8 and his passion inspired him to create his business in July of 2017. Like most
millennials his company mainly operates online. The mission statement for Karls Macarons is
to keep you satisfied with my baking no matter what you ask me for, so I hope you enjoy your
visit around the web store. Karls ultimate pleasure comes from providing people with the joy
of his baking, but in order to keep that dream alive Karl must also earn a profit.
After dissecting Karls business, we learned there are 10 flavors on the menu. One of his
best sellers is Cookies n Cream. He receives approximately 1 to 2 of his Cookies n Cream order
every week, an obvious favorite of UTD students. The quantity of his macaroons comes in 5, 10,
15 and 25 with Prices ranging from $8.00 to $28.00. It takes him 60-90 minutes to make 5
batches of macarons (4 per batch). When asked about his target market, Karl paused for a
moment before expressing that he can see potential in expanding the market outside of UTD.
Also, Karl advertises his macarons mostly on twitter and facebook to gain customers. In
addition, Karls social media sites and website display excellence in art-design and simplicity of
Due to Karls lack of experience and unspecified business essentials, there will be many
opportunities for amateur mistakes and accidental successes. Therefore, having the opportunity
to do market research for Karls Macarons is a gracious occasion for everyone involved. The
research problems and objectives are the first steps in implementing a successful research
marketing project. The research component and objective will be explained thoroughly in the
following paragraphs.
Research Objectives
There are multiple purposes for conducting the research for Karls macarons, he is
unfamiliar on the market of his goods. Karl is new to business, and he is faced with uncertainty
as to how the market will respond to his dessert. He cannot predict the appetite UTD students
and faculty members will have for his specialty dessert. Our goal is to clearly outline simple
objectives that can eliminate some of the flaws in his business. For the research we would gather
data to record factual information showing our sample date. We will analyze the information and
provide Karl with our expert recommendations based on our findings. First, we are trying to
identify the range of pricing that is acceptable for macarons. Once we determine the market
demands for price we will shift focusing to identify which characteristics will make his product
more appealing. Most importantly we will test Karls hypothesis of whether or not college
Method
Research Design
We have conducted a focus group and survey (descriptive). We are using primary
methods of research in this study, and we have surveyed 101 people in total. We ordered $45
worth of macarons for sampling as a way to attract people to take our survey. As results, we
surveyed 80 people at the University of Texas at Dallas and 21 people at the Richardson area.
We spent a total of 3 days to complete the survey. For our survey, we only used in-person
collection methods and have them fill out the survey on our electronic devices to acquire our
data. Our survey helped us determine the reasonable price range, the gender , the best age group
for his business and the preferable flavor for macarons. We are able to come up with the solution
and most effective way for him to expand his business with the data we collected.
We designated at least two specific questions based on each of the problem. For example,
in order to know what is the acceptable price range for macaroon, we first asked them if it is
reasonable to pay $1.60 for a macaroon. For our second question, we listed out a couple price
range and asked what would them consider as a reasonable price for a dozen macarons.
Statistical Analysis
We surveyed 101 people at the University of Texas at Dallas and the Richardson area.
Among the 101 respondents, 45 (44.55%) are age 15 - 25, 38 (37.62%) are age 26 - 35, 12
(11.88%) are age 36 - 45, and 6 (5.94%) of them are age 46 and up. Theres 44 Asian (43.14%),
Regarding to the annual household income, 24 (24.00%) respondents are 0 -25k, 21 (21.00%) are
respondents 26k- 50k, 36 (36.00%) respondents are 51k - 100k, and 19 (19.00%) respondents are
According to the survey result, 37 (36.63%) respondents did not have macaroons in past
year, 50 (49.50%) respondents had macaroons between 1 - 5 times, and only 14 (13.86%) people
had it more than 6 times. We expected the similar result since donuts and cookies are for more
popular than macaroons, it surely need to raise the awareness. In a scale from 1 to 5 which 1
means low and 5 means high, surprisingly theres 83 (82.18%) respondents have a scale of at
respondent said they never bought dessert online, comparing 24 (23.76%) have bought before.
That makes sense because online dessert business still need time to develop.
When we asked questions regarding the price, 18 (17.82%) respondents said they pay
$1.00 or less for a typical dessert at home, 32 (31.68%) respondents pay from $1.01 to $3.00, 30
(29.70%) of them pay from $5.01 to $7.00), and only 8 (7.92%) pay more than $7 for dessert. In
order to know if Karls macaroons price is acceptable to his UTD students, we then ask
respondents that if they think its reasonable to pay $1.60 for a macaroons, turns out 62 (61.39%)
respondents are fine with the price and only 39 (38.61%) are not okay with it. The price
acceptability looks more optimistic than 40% which we have anticipated before the survey.
We then asked how often would they purchase the reasonably priced macaroons, only 7
(6.93%) would purchase macaroons once a week, while 57 (56.44%) would purchase it 3 - 4
times a year or only for special occasions. It looks like respondents still dont allocate macaroons
On the social awareness level, while we asked under which occasions would they
consider ordering macaroons, 29 (18.95%) said they would just purchase anytime they want,
while the majority 75.11% of them would purchase macaroons under birthday, wedding, special
event, holidays, or other occasional treat. Macaroons surely needs time to categorize itself as a
typical dessert. When we asked respondents how likely would they recommend macaroons to
their friends, only 10 (9.9%) of them are unlikely or very unlikely to recommend to their friends,
comparing 24 (23.76%) of them said somewhat likely and 67 (66.33%) said they would likely or
We went deeper to ask them about their preferences when they are purchasing a dessert,
regarding Freshness, Brand, Appearance, Low-in-Calories, and Price. At a scale from 1 being
not important, 3 being somewhat important, and 5 being very important, Brand and
Low-in-Calories are well-balanced. In the Brand section, 32 (31.68%) respondents do not care
the brand-effect and only 41 (40.59%) care the brand name. On the Low-in-Calories section,
43(42.57%) respondents do not take the calories as a critical factor when they purchase the
dessert. Freshness, Appearance, and Price preference shows the direct proportionality, 57
(56.44%), 47 (46.53%), and 41 (40.59%) respondents rate Freshness, Appearance, and Price
preference are very important when they are purchasing a dessert. That surprised Karl because he
thought Low-in-Calories, and Brand are the factors he must prioritize on but turns out Price, and
Surprisingly 39 (38.61%) and 45 (44.55%) respondents prefer dark and soft pastel
colors, which is significantly different than Karl expected. When we asked respondents which
favors they would like to try, 43 (42.57%) respondents selected chocolate and other 28 (27.72%)
respondents would like to try chocolate-related favors such as mint chocolate, white chocolate,
coconut chocolate, banana chocolate, or mocha favors. Thats a huge opportunity for Karl
Main Takeaways
1. Age from 15 - 35 are more acceptable to pay from $1.01 to $5.00 for their dessert.
After we surveyed 101 people, we use the cross tabulation analysis on age and
respondents behavior of having dessert (P1). We cross-analyzed the age and how much
does respondent pay for a typical dessert they eat at home, turn out we got a statistically
significant of 0.04 p-value at 95% confidence level, which means the research tell us the
age and how much they pay are associated and have a correlation between these two
variables. By that we know that age 15 - 35 are more acceptable to pay $1.01 to $5.00 for
their dessert. We also found out that the p-value is not statistically significant at 95%
confidence when we cross-analyzed age and online purchasing behavior, meaning that we
cant tell if theres any specific age group is more likely to purchase online.
2. If customers accept the macaroons price, they are likely to share macaroons to their
friends or families. According to the cross tabulation analysis (P3), at 95% confidence
level, the hypothesis test is statistically significant, it indicates that if the customers think
the macaroon is reasonably priced, they are likely to give macaroons to friends or
purchasing behavior. Karl believed female customers are more likely to have
macaroons than male customers and female customers are more likely to purchase dessert
online than male customers. According to Gender vs Macaroons Awareness & Gender vs
Online Purchasing Behavior, theres no correlation between these variables, meaning the
4. Freshness, appearance, and price are the important factors when purchasing a
macaroon. Through our research findings the results showed that people would prefer to
have a higher quality of Freshness, Appearance, and Price. Low-in-Calories and Brand
were a lower on the list of priorities. The data indicated that people preferred soft pastel
dessert. Karl believed that customers are likely to spend more money on dessert if they
are higher annual income family. According to the cross tabulation analysis (P9)
indicates that the annual household income and how much do the respondents pay for
dessert are not associated, meaning these two variables are independent. We cant tell if
the higher annual income customers would spend more on dessert or not.
Observation Report
2 months
1 people
UTD customers
7. From 1 to 5, how well do you maintain the relationship with your customers?
5
The name of the business is Karls Macarons. It is an online macarons store, everything is
made from home. Name of the business was inspired by the owners first name, Karl
Ngantcha-Mbagna. He is a college student who has been baking since the age of 8. He started
baking macarons in February of 2017. His mission is to keep customers happy with his
macarons, and other baking goods. The goal for Karl is to open up a standalone store as side
After observing his business, there are 10 flavors on the menu. One of his best sellers is Cookies
n Cream. He gets around 1 to 2 order every week, most of his customers are UTD students. The
quantity of his macaroons comes in 5, 10, 15 and 25. With Price ranging between $8.00 to
$28.00. It takes him 60-90 minutes to make 3 batches of macarons. When we asked him about
his target market, he said that he can see potential in expanding the market outside of UTD. Also,
Karl advertises his macarons mostly on twitter and facebook to gain customers. In addition,
karls social media sites and website excel in art-design and simplicity of displaying the
macaroons. Lastly, we have decided to focus on identifying his target market as the research
Limitation of study
Despite all the preparations we did before the survey, we ran into some limitation to our
study. One of them is the sample size of the survey , Professor Rajaratnam mentioned in class
that the ideal sample size should be 384 but according to our sample size, we only have 101
respondents, According to the Professor, if our sample size is too small, it will be difficult to find
significant relationships from the data, as statistical tests normally require a larger sample size to
Another limitation of study we ran into is that our survey is designed for people that have
tried macaron. In our survey results show that 13 respondents who have never try a macaron
before therefore we have errors in our data. When people think of dessert, they often associate it
with cookies, this might make respondent bias when we ask the questions relating to price.
In conclusion, the research data from our surveys, and focus group were used to form
trends that we analyzed and interpret to make educated suggestions. With the limitations in mind
we took the research and cross referenced the data, and made our recommendations to Karl listed
below. There were surprising findings in our data, and with the data we found that there are
2.Karl should come up more dark color and soft pastel color macaroons
4. Age 15 - 35 are the age group more acceptable with $1.60 and likely to purchase dessert
online than other age group, Karl should advertise or promote his business to UTD students and
facilities.
Karls Macarons is a business that is far from dominating the dessert market but can
carve out a profitable niche in the hearts of college students across the state. In addition to the
observations addressed above we believe that an actionable marketing plan will help add
Karl should take an initiative to market more directly to college age males. The
significant aspect of this marketing is that it should be positioned as a potential gift, most of the
males in our sample test exclaimed that this is a favorite gifting option for an occasion. Well
timed marketing during the holiday season as well as Valentine's day will surely encourage more
Another concern that arises from the survey was the price of the macarons. Karl is
currently 25% more expensive than the consensus price of $1.60. Customers also confessed to us
that the main appeal of macarons came from their color, freshness and price. Carefully
transitioning to cheaper ingredients while maintaining the same taste and level of freshness can
be an effective way to increase revenue, decrease expenses and ultimately earn a profit.
Furthermore, the biggest area of value we would like to add is a rough outline of a
marketing strategy. Being that Karl has determined a unique demographic and population as a
target market he must now focus on what his customer have in common rather than their
differences. Since they are all students at UTD, it makes sense that Karls Macarons would
invest its time and resources in increasing its popularity throughout campus. Perfecting a
business model at this school would give Karl a foundation to expand his business to other
University of Texas locations or other Universities in the DFW area. Ideas such as developing an
intern program where fellow students earn experience delivering macarons to other students
would give Karls Macarons exposure to students looking for manageable work opportunities
and creates an atmosphere of convenience that will inspire more acceptance among millennials
By aligning himself with school functions and organizations that inspire and support
entrepreneurship, Karl can find smart and effective ways to advertise and sell his goods at UTD
functions and become a more notable figure on campus, breaking through obscurity will increase
Karls sales by roughly 7% over the next 6 months and eventually create a business model that
can be replicated and scalable to meet the demands of college students across the state.
Full Result from Online Survey
Default Report
Karls Macarons Online Survey
November 22nd 2017, 3:00 pm MST
# Answer % Count
1 0 36.63% 37
2 1 - 5 times 49.50% 50
3 6 - 10 times 11.88% 12
# Answer % Count
1 Yes 87.13% 88
2 No 12.87% 13
# Answer % Count
1 1 (Low) 7.92% 8
2 2 9.90% 10
3 3 27.72% 28
4 4 32.67% 33
5 5 (High) 21.78% 22
# Answer % Count
# Answer % Count
1 Yes 61.39% 62
2 No 38.61% 39
# Answer % Count
1 Yes 84.16% 85
2 No 15.84% 16
# Answer % Count
5 Never 11.88% 12
# Answer % Count
1 Anytime 18.95% 29
3 Holidays 22.88% 35
(Chocolate 43/101)
A. B. C.
0 0 0
0 0 0
0 0 0
# Answer % Count
3 $9 - $12 35.64% 36
4 $5 - $8 16.83% 17
5 Below $5 1.98% 2
# Answer % Count
2 Unlikely 5.94% 6
4 Likely 45.54% 46
# Answer % Count
1 Bright 16.83% 17
2 Dark 38.61% 39
# Answer % Count
1 Yes 23.76% 24
2 No 76.24% 77
# Answer % Count
1 Yes 80.21% 81
2 No 19.79% 20
# Answer % Count
1 15 - 25 44.55% 45
2 26 - 35 37.62% 38
3 36 - 45 11.88% 12
4 46 and up 5.94% 6
# Answer % Count
1 Asian 43.14% 44
3 Caucasian 24.51% 25
4 Hispanic 8.82% 9
5 Other 9.80% 10
# Answer % Count
1 Male 58.42% 59
2 Female 41.58% 42
# Answer % Count
1 0 - 25k 24.00% 24
75081
75082
75081
75042
75082
75215
75082
75080
75080
75080
75042
75098
75098
75042
75081
75081
75082
75094
75215
75215
75215
75215
75082
75023
75080
75082
75089
75089
75094
75082
75081
75023
75081
75081
75082
75082
75081
75080
75023
75080
75075
75035
75023
75070
75081
75080
75080
75080
75025
75044
75001
75081
75025
75287
75035
75180
75081
75094
75080
75287
75007
75075
75082
75013
76040
75080
77642
75022
75094
75074
75080
75025
75038
75035
75025
75067
75025
76065
75056
75080
76201
75243
75088
75252
75081
75098
75075
75080
75094
75080
75080
75070
78750
75080
75080
75077
75006
75025
Appendix B:
7. From 1 to 5, how well do you maintain the relationship with your customers?
Demographics
o Zip code
o City
o State
- 12:30 pm 1:30 pm
- 6 people were present = Each person wanted their name to be confidential, and the
Person 1. Zip code 75081, City: Richardson TX, Age 59- male
o Person 1, have never tried macarons before, but have heard that they are delicious
desserts. They said, usually they just stick to cupcakes or cheese cakes when deciding what
dessert to purchase.
o They said the website is very colorful and the design puts all of the focus on the
o He eats macarons around 4 times a month from a bakery in Plano. But think it is really
o Black/African American
Person 2. Zip code 75081, City: Richardson TX, Age 54- female
o Person 2, they usually eat macarons for special occasions like holidays, social events, and
usually give them to relatives as a gift. They asked if there are healthy macarons like sugar
free. They believe that would be different and a step ahead of the competition.
o Person 2, loves how simple the website is to operate, and thinks the macarons photos are
well thought out really display how tasty they look. They do wish there were more options
for the macaroon flavors but are impressed with the flavors that are presented.
o Black/African American
o Cookies n Cream
o They love the design of the website and believes the simplicity of the website is its strong
point.
o They eat macarons every other week. Somedays they buy them or make macarons
o Asian
o Custom macaroons
o Strawberry vanilla
o Pink Champagne
o Person 4 enjoys macarons but it depends on the bakery they purchase them from. They
have tried karlsMacs before and believe KarlsMacs have the best Cookies n Cream
from the other bakery websites. Although they do really enjoy how the macarons are
photod.
o 4 to 5 times a year
o Hispanic
o Lemonade Macaron
o Salted Caramel
o Cookies n Cream
Person 5. Zip code 75001, City: Dallas TX, Age 21- female
o They said macarons are there favorite desert, but usually just eat them on special
occasions because they can become a little expensive. They also wondered why macarons
are expensive. I explained they are difficult to make and take a little bit of more time than
other deserts.
o They thought the website was simple and they wish to see more info on the ingredients of
each macaroon and calorie count. However, the macarons looked delicious to them on the
website. They said Could I order some now in which I replied after the meeting is over
o Caucasian
o Pink Champagne
o Vanilla Macarons
Person 6.: Zip code 75033, City: Frisco TX, Age 26- male
o They have tried macaroons once a couple years ago and enjoyed the texture but thought
the Macaron was a bit too sweet. In so, they are willing to try them much more knowing
o They explained their background in web development and said the website is very simple
which is always a great thing. But the prices category is a little confusing and threw them
off when it showed $8.00 - $28.00. other than that they loved how the macarons looked
in the photos.
o Caucasian
o Star Light
o Salted Caramel
o Pink Champagne
Closing Statements
After the questions ended, I asked if there were any questions or concerns the
participants want to bring up. None of the participants had any questions or concerns to
tell me. They did enjoy the discussion and I thanked them for participating in the focus
group.
Once the focus group was completed, there were a couple of findings that helped
gain more knowledge in figuring out Karls macaroons target market. By using open ended
response questions from different participants we were able to understand how people feel
about Karls macaroons. The participants were open to trying Karls macaroons mostly
during special occasions . In addition, they also explained the strengths of the company and
what could be improved upon. In conclusion, the focus group gave us face to face data and