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Make a final report based on my Survey Result, combine with my Primary Research & Secondary Research-How Samsung Has Succeeded in Android’s World.

Attached myPrimary Research &Secondary Research-How Samsung Has Succeeded in Android’s World

Attached sample of Secondary Research & final report

You don't need to put the survey inside the report, unless you need the graphs.

You will have 40 HOURS to deliver the best work.Time sensitive, last tutor only wrote 361 wordsand he failed me.

MyFinal Report is to analysis WHY Samsung can be the best in Android's market.

My secondary research is already finish (attached).

Now you need to focus on my primary research and my survey to ANALYSIS.

Goal is to combine secondary research & primary research to make a final report (Don't just copy and paste my works. I need you to analysis.)

The source of my survey is from random 30 people on Facebook.

Analysis everything from my previous research and survey. I need a best Final Report.

Don't hesitate to ask me if you have any question. Thank you.

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Market Research How Samsung Succeed In Android’s world 1. EXECUTIVE SUMMARY: Preface: Information technology has developed, smartphone have become the mainstream of communications equipment market, It’s believed that the term of the smartphone are no longer strange, and relevant products have also come out for a long time, but recently there is a sign of a sharp turnaround for smartphone, smartphone’s function are more than you can imagine, the most simple definition is the PDA plus mobile phone, personal digital assistant Feature added to the phone. What PDA can do, smart phones can complete as well, including the Internet, personal information management, send and receive Email or processing information and a variety of documents. Research Motive: Smart phones and mobile networks have become mainstream, changed the life for the human being, not only keep the phone connection, such as geographical location, lifestyle and other personal files, resulting in the new Model of personal life and interpersonal interaction, and extension affect the marketing, brand communication areas. In addition, the evolution of mobile phones and mobile devices, corresponding to the current cloud computing industry, will also be derived from a variety of changes in technology and new technology opportunities, lead to follow-up innovation and breakthrough. In the smart phone market, there are many companies want to grab this market. It is reported in 2014 that South Korea's Samsung mobile phone in the global Android won 65% of the market share, the power is quite strong. However, why can Samsung mobile phones be such a highly competitive mobile phone. 2. Research Questions and Goals: Samsung is one of the leading competitors in the smartphone market. The brand produces a variety of products including smartphone, television, washing machine for people. We researched the brand to answer the question: •How Samsung consolidate their brand image and success in Android world? Our goal is to assist smartphone’s company who also use Android system. Our secondary research provided us with background information on the company’s current status and goals. We continued to further analyze the brand with primary research, which allowed us to consider ways in which to make improvements for smartphone’s company. 3. Research Method (A) Literature review: through the Internet, books and secondary research to collect information related to Samsung, then to integrate and discuss. (B) Questionnaires: In this study, the questionnaire was used as the research work, and the degree of preference of the Samsung mobile phone and purchase satisfaction were investigated. 4. Research Subjects I did online survey to them, I took Facebook as a Population and used friends on Fb as a Simple to study. SECONDARY RESEARCH REPORT 1 How Samsung Has Succeeded in Android’s World Sheng-Ho UCSC Silicon Valley Extension SECONDARY RESEARCH REPORT 2 Table of Contents: Preface……………………………………………………………………….….............3 Background……………………………...………………………………………………3 Market Share…………………………………………….………………………………4 Success story……………………………………………………………………………5 Creative Qualitative Research…………………………….…………………………….6 Samsung Company – Smartphone Analysis……………………………………………6 Methodology………………………………………………..….……….………………7 Smartphone Shipments…………………………………………….………….…...…….8 Conclusions………………………………………………………………..……….……9 Recommendations………………………………………………………………………..10 Remaining Research Needs………………………………………………….…….……11 References………………..……………………………………………………….………12 SECONDARY RESEARCH REPORT 3 Preface: Data innovation and technological development have created the smartphone which has turned into the standard hardware of correspondences market. It is trusted that the term of the smartphone is no longer odd. Pertinent items have likewise turned out for quite a while; however, as of late there is an indication of a sharp turnaround for the cell phone. Cell phone's capacities are more than you can envision, the easiest definition is the PDA in addition to a cell phone, the individual advanced associate element added to the telephone. What PDA can do, advanced mobile phones can do also, including the Internet, individual data administration, send and get Email or handling data and an assortment of archives. Background: Advanced cells and portable systems have moved toward becoming standard, changed the life for the individual, not just keep the telephone association, for example, land area, way of life and other individual documents, bringing about the new Model of individual life and relational collaboration, and expansion influence the advertising, mark correspondence regions. Furthermore, the development of cell phones and cell phones, comparing to the present distributed computing industry, will likewise be gotten from an assortment of changes in innovation and new innovation openings, prompt follow-up advancement and leap forward. In the smartphone market, there are many companies who want to grab this market. It is reported in 2014 that South Korea's Samsung mobile phone in the global Android market won 65% of the market share, the power is quite strong. However, why can Samsung mobile phones be such a highly competitive mobile phone? SECONDARY RESEARCH REPORT 4 Smartphone Vendor Market Share From the above graphical and table analysis, we can draw the following conclusions; 1. Samsung retained its No.1 position in the worldwide smartphone market with a 21% share in 2016Q3. 2. Even though explosion event caused to real Note 7, but still thanks to the continued success SECONDARY RESEARCH REPORT 5 of the Galaxy S7 and the S7 Edge devices 3. The fast rate at which Samsung recovers from the damage to its brand can be clearly seen. 4. The average selling amounts of Huawei devices has been increasing steadily. What remains to be seen is how successful Huawei can be at penetrating the high-end segment in the US. 5. With a share of 7.1% of the smartphone market, OPPO's main play is in China. With aggressive marketing, it continues to find success in Asian markets outside China. 6. It maintains strong momentum in China and has gained significant growth in India and Myanmar. Using celebrity endorsements and advertisements, the video has been able to capture a huge following and create a strong brand presence (IDC, 2016Q3). Samsung's Android success story SECONDARY RESEARCH REPORT 6 From the above graphical information, we can draw the following conclusions supporting our topic sentence; 1. Samsung has managed to take Google's Android mobile platform and create smartphones for it that people want, capturing more than 50 percent of the smartphone market from 2010 to 2012 2. Samsung has seen a great deal of success with its Galaxy series of devices. 3. The Galaxy S III also saw a broad release, available on Verizon, AT&T, Sprint, T-Mobile and U.S. Cellular. This made it available to as broad an audience as possible. 4. The Galaxy Series is also a great device for the bring-your-own-device (BYOD) crowd. The handset has a number of enterprise-friendly features (Adrian Kingsley-Hughes, 2012). Samsung’s Creative Qualitative Research 1. Samsung spends $10.7 billion, or 5.7 percent of revenue, compared with Apple’s $3.4 billion, 2.2% on research and innovation. 2. Samsung also relies heavily on ethnography and trend analysis to bring inspiration and to port ideas over from other realms of design. 3. It listens to consumers, other industries and its partners, such as component makers and wireless carriers (Buyer Synthesis, 2013). Research and Markets: Samsung Company - Smartphone Analysis 1. Samsung build Smartphone for everyone 2. Samsung provide an open operation System 3. Samsung Smartphone sales Strengths & Weaknesses SECONDARY RESEARCH REPORT 7 Samsung Strengths: • Strong Technology • Supports Multiplatform • Focus on Innovation and Consistent R&D • Smartphone for Everyone • Samsung Increasing Mobile Phone Market Share Samsung Weaknesses: • Patent War between Apple Inc. and Samsung • Software Is a Fatal Weakness of Samsung (Business Wire, 2012). Methodology Samsung Electronics 1. Samsung Electronics products include semiconductors, hard drives, digital displays, home electronics, mobile phones, and others. 2. All Samsung products have the same tone so that customers can easily get used to them and this tone is mentioned when Samsung products are being advertised as well. 3. The business strategy of Samsung Electronics presents an interesting case due to the fact that company has an experience of pursuing both, cost leadership as well as product differentiation strategies during its lifetime (Research Methodology, 2012). 4. Samsung design staff has been tripled to 400 globally (Singhania, 2006), along with numerous other measures. SECONDARY RESEARCH REPORT 8 5. The dramatic change in the strategy of the company has allowed Samsung Electronics to emerge as one of the main players in all of the markets the company operates in. Smartphone Shipments From the above table of smartphone shipments, we can draw the following conclusions; 1. Samsung still has the highest Shipment Volume in the last 2 years. 2. Midrange phone cameras have improved dramatically. 3. Consumers do not have to compromise on app performance by buying a midrange or budget smartphone like they had to two years ago. 4. The globalization of the smartphone market will have a lasting impact. 5. With the improving phone quality, the replacement cycle is lengthening, as Chinese consumers are not compelled to upgrade as quickly (Network World, 2017). Conclusion: SECONDARY RESEARCH REPORT 9 The business environment is highly dynamic so that there is the need for organizations to keep updating their systems so as to meet the growing needs of consumers. Technology has taken the better part of customers and going digital is the primary requirement of clients. In the smartphone industry, for example, there are many companies thus a variety of brands availed to customers. However, consumers are choosy and take the time to accept a product especially because they have to take the devices that have all the features that they are looking for (Morrison, 2008). Different brands have features that attract different customers. The main thing that all clients are looking for is an easy way of communicating and creating networks and connections with people. For example, the social media is one of the leading platforms where people communicate and interact with each other, share business ideas and grow the ideas into reality. Samsung provides smartphones to customers that are aimed at enabling the customers to use the applications and features as they are present in the phones. The company, however, faces challenges in its operations, which make it hard for the company to realize its full potential. Also, the company is advantaged since it has a brand image that is known to customers all over the world. As a result, the company does not have a hard time when marketing its products. Regardless of the competition, Samsung can manufacture the best products that will meet the needs of the customers thus widening its customer base. Recommendation: SECONDARY RESEARCH REPORT 10 Samsung Company operates in a highly competitive industry, and many challenges are affecting its operations. However, the company should take competition as a factor that will drive it towards having a competitive advantage. For instance, the company should aim at having a differentiated brand that has better applications as compared to those manufactured by other businesses. In this case, the company should have a variety of brands where each will have different specifications that will meet the diverse needs of customers. On the other hand, the company should focus on having loyal customers and attracting many others by providing quality products at affordable prices. The smartphone industry has expanded to cover all parts of the world. The market has also grown, and customers seek to satisfy their needs by having the right devices (Michell, 2010). The war between different companies has made some perform poorly while others have excelled through making customers satisfied. The Samsung Company must understand the nature of its competitors, the devices manufactured and their ability to penetrate the market. Also, the company should seek to identify the unmet needs of customers and manufacture devices that will make them get satisfied. On the other hand, the Samsung brands should be made available in different parts of the world at fair prices and with quality features that will attract customers. The company should also remain updated on technology and technological features that could get utilized in manufacturing quality brands. The company should also aim at creating a brand image that will get accepted by the customers, and this will enable the company to retain a significant number of clients. Remaining research needs SECONDARY RESEARCH REPORT 11 For Samsung Company to stay effective in the aggressive business condition there will be the need to put an emphasis on alternate components that may influence its operations including the partner's advantages, for example, the requirements of representatives and clients and additionally those of the shareholders. The need to adjust between the necessities of customers dependably makes an association effective paying little heed to the business inside which it works. Samsung has been loved a lot by the customers in the recent years. The major reason why customers love Samsung smartphones is that the phone has got a strong hardware. Samsung smartphone hardware is made up of special alloys which are made up of special components which makes it durable as compared to other smartphones. Secondary research was not easily to determine the reason why people has been loyal at Samsung, so the survey of my Facebook who used Samsung smartphone or Android system smartphone might help me to figure out the factors why they like Samsung. Furthermore, the data or information above were provide by social media or Samsung, it wasn’t easily to reveal the voice of customers. By collecting the data from survey would also help me to understand customer’s satisfaction and loyalty of Samsung References SECONDARY RESEARCH REPORT 12 Michell, T. (2010). Samsung Electronics and the struggle for leadership of the electronics industry; Singapore: Wiley. Retrieved from http://www.worldcat.org/title/samsung-electronics-and-the-struggle-for-leadership-of-theelectronics-industry/oclc/767953023 Morrison, J. (2008). International Business: Palgrave Macmillan. Retrieved from http://www.worldcat.org/title/international-business/oclc/965711578 Smartphone Vendor Market Share (IDC, 2016Q3). Retrieved from http://www.idc.com/promo/smartphone-market-share/vendor Samsung's Android success story (ZDnet, 2012) http://www.zdnet.com/article/samsungs-android-success-story/ Samsung’s Creative Qualitative Research (Buyer Synthesis, 2013) http://buyersynthesis.com/blueocean/creative-qualitative-research/ Research and Markets: Samsung Company - Smartphone Analysis http://www.businesswire.com/news/home/20120228005892/en/Research-Markets-SamsungCompany---Smartphone-Analysis Samsung Electronics (Research Methodology, 2012). Retrieved from http://research-methodology.net/samsung-electronics/ Smartphone Shipments (Network World, 2017). Retrieved from http://www.networkworld.com/article/3193126/mobile-wireless/q1-2017-smartphoneshipments-samsung-rebounds-apple-goes-sideways-chinese-makers-roar.html Final Market Research Report: Opening A Home Bakery In The Bay Area: Laws, Requirements, Financial Viability and Potential Interest By XXXXXX UCSC Silicon Valley Extension JULY 2015 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest Table of Contents Executive Summary ...............................................................................................................................................3 Introduction ............................................................................................................................................................4 Findings...................................................................................................................................................................5 Potential Interest............................................................................................................................................................... 5 Purchase from Home Bakeries ....................................................................................................................................... 5 Target Audience Considerations .................................................................................................................................... 6 Product Considerations .................................................................................................................................................. 7 Requirements .................................................................................................................................................................. 10 Pricing .......................................................................................................................................................................... 10 Expenses ....................................................................................................................................................................... 10 Equipment Required..................................................................................................................................................... 11 Financial Viability .......................................................................................................................................................... 11 Potential Revenue......................................................................................................................................................... 11 Supplementary Income & Next Steps .......................................................................................................................... 12 Laws ................................................................................................................................................................................. 13 The Act ......................................................................................................................................................................... 13 Operational Requirements for CFOs in Mountain View.............................................................................................. 14 Legal Requirements...................................................................................................................................................... 15 Labeling........................................................................................................................................................................ 15 Restrictions ................................................................................................................................................................... 15 Conclusions ...........................................................................................................................................................16 Recommendations ................................................................................................................................................16 Appendices ...........................................................................................................................................................17 July 2015 2 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest Executive Summary Research Objective: The objective of this market research study was to understand how to open a home bakery in Mountain View, CA, whether it was financially viable, and whether consumers were interested in purchasing from one. Background: Understanding potential Bay Area consumer preferences as well as the experiences of current Bay Area home bakers will make it possible to determine if it is financially viable to open a home bakery. Also, it is imperative to understand all legal aspects to ensure all regulations are followed. Methodology: Secondary Research: This was conducted from May 21-June 10, 2015, and included perusing online information from articles, websites, forums, surveys and files to understand legal and operating requirements for a home bakery. Primary Research: Two online questionnaires were administered from Jun 23-July 1, 2015- one targeted to potential Bay Area consumers to understand their buying habits for baked goods, and whether they would buy from home bakeries, and the other targeted to Bay Area home bakery owners to learn about their experiences with revenue earned from their businesses. Findings:  A home bakery can be of Class A or Class B permit type, and both are not allowed to exceed $50,000 revenue per year or sell cream filled, custard filled, cream topped or other baked goods that need to be refrigerated.  More people are likely to buy from a home bakery than not- 78%.  This drops to 58% when told about the restrictions of home bakeries, as people were concerned whether the products sold could be considered safe.  Thirteen out of 28 people mention home delivery as the first preference, but Mountain View rules only allow 2 deliveries per day.  Mini baked goods were the most popular product choice (4.25 mean).  100% of all home bakers surveyed believe that revenue earned is not enough, with 87% believing they need another job for their main source of income. Conclusions & Recommendations:  Opening a home bakery with Class A permit is recommended as it's cheaper and less subject to excessive scrutiny.  Offering free samples as well as keeping price in the $5-$10 range is important.  A home bakery is not likely to provide enough income to live off of, and the revenue received can only be considered supplementary to a main source of income.  Starting with selling mini (sweet and savory) baked goods may be profitable.  It is important to provide as much information as possible about safety checks done and why the baked products sold are of highest quality as some people are wary about food sanitation in home bakeries, and are unaware of what they entail. July 2015 3 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest Introduction Objective & Hypothesis The primary objective of this research study was to understand how to go about opening a home bakery in Mountain View in the Santa Clara County under the California Homemade Food Act. In addition to learning what the requirements are, this study was also used to gauge the level of interest consumers have in purchasing from a home bakery, and whether it's possible to earn a living from the revenue received. The hypothesis was that a home bakery couldn't be considered as a main source of income, only supplementary, as it isn't possible to generate enough sales and earn enough profit to make a living. Background With the introduction of the California Homemade Food Act in 2013, it is now possible to manufacture and sell a limited amount of homemade foods. These operations are called Cottage Food Operations (CFOs). Home cooks can make what are considered “low-risk foods” from within their home kitchens. Baking from home to test the waters, and to supplement income is the perfect alternative to a full time baking career, as the investment needed for a full-scale commercial bakery operation is too expensive and risky. A concern with the California Homemade Food Act is that there are a limited amount of items that can be sold, i.e., items that do not require refrigeration. This means certain popular items such as cakes with certain types of frostings cannot be sold, which can potentially affect revenue and profit. In addition, dogs are not allowed in the kitchen, and the author was interested in learning how to work with this, and whether it might be better exploring a commercial kitchen space instead. Besides those limitations, the author was curious to understand whether consumers would prefer to buy foods from an established bakery in-store or a retail outlet as opposed to a home baker. Would they consider it risky, since they can’t quite be assured of the same type of quality and reputation? They cannot also buy anything that needs refrigeration, so would that be a distinct disadvantage? Also, how much would they be willing to pay for home baked products? It was also necessary to understand what the experience was for people who have started their own home bakeries in the Bay Area. Methodology a) Secondary Research  Secondary research was conducted to understand what legal and operational requirements were necessary to run a home bakery.  Additional research was done to identify what food products could be sold, and what food trends should be considered for a home bakery to be successful.  Online resources such as web articles, PDF documents, local government websites, forum discussions and guides were used to build out secondary research.  This was conducted from May 21 - June 2, and was primarily done using search keywords such as 'California home bakeries', 'CFO,' California Homemade Food Act,' 'Food Trends 2015,' 'Cottage Food Operations' and related. b) Primary Research:  Primary research was conduced by the administration of two online surveys from June 23-July 1. July 2015 4 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest          One was targeted to potential Bay Area consumers to understand their buying habits when purchasing baked goods, and whether they would be interested in purchasing from home bakeries. The other was targeted to home bakery owners in the Bay Area to understand what their experiences have been with earning revenue from their businesses. Both surveys were distributed through various Facebook groups and online baking related forums. In addition, the home bakers survey was also distributed through CFO related websites. The consumers' survey was also distributed to personal connections as text messages. For the consumers' survey, respondents were considered eligible if they lived in Alameda, Santa Clara, San Mateo and San Francisco Counties, and purchased baked food products. For the home bakers' survey, respondents were considered eligible if they owned a home bakery in the Bay Area for more than 3 months. Final Sample Size for Consumers Survey: 34 with a margin of error of +/-14% at a confidence level of 90%. Final Sample Size for Home Bakers' Survey: 15 with a margin of error of +/-18% at a confidence level of 85%. Findings Potential Interest a) Purchase From Home Bakeries  Home bakeries are the least purchased (2.22 mean) from among retail stores and commercial bakeries. This was expected, since they are not very popular yet.  Surprisingly, retail stores are the most popular (mean 3.89). This can mean that more people are used to paying lower prices (as compared to from commercial bakeries). Thus, it's important to really stress the value of the baked products from the home bakery in promotions and when selling. Figure 1: Mean values* for how likely a consumer is to purchase baked goods from a commercial bakery, retail store or home bakery *Mean value for the scale: 1 - Never, 2 - Rarely, 3 - Sometimes, 4 - Somewhat Often, 5 - Very Often July 2015 5 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest  What was a pleasant surprise was that more people are likely to buy from a home bakery than not- 78% (including somewhat likely and very likely data) Figure 2: Percentage values showing how likely people are to buy from a home bakery  Disappointingly, this drops to 58% when told about the restrictions of not being able to sell refrigerated goods. When prompted, a few people mentioned that they were concerned about whether the products sold could be considered safe. As such, it is important to stress the safety measures taken when selling and during promotion. Figure 3: Percentage values showing the probability of people purchasing from home bakeries in spite of restrictions b) Target Audience Considerations  Since a home bakery, as per the California Homemade Food Act, can only sell within California, and must make 'face-to-face' direct deliveries, the target audience must be only focused on residents and events within a relatively close driving distance of Mountain View.  Consumers must also have the ability to purchase online or in person, but be from a relatively close distance.  As such the counties to be considered for delivery and events should be Alameda, Santa Clara, San Francisco and San Mateo. July 2015 6 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest  In terms of delivery, 13 out of 28 people mention home delivery as the first preference with pick up from residential location as their second. As per Mountain View restrictions, though, only 2 deliveries can be made per day. Thus, deliveries must be thought out carefully each day, and offered only for high value purchases, if possible. Figure 4: Rankings for delivery/pick up of home bakery products c) Product Considerations Approved Food Products List (as of January 2, 2015): Baked goods, without Candy Chocolate covered noncream, custard, or meat perishable foods fillings Dried pasta Dry baking mixes Fruit pies Herb blends and dried mole paste Popcorn Honey and sweet sorghum syrup Vinegar and mustard Cotton candy Candied apples Dried or Dehydrated vegetables Seasoning salt Dried vegetarian based soup mixes Flat icing Jams, jellies, preserves Roasted coffee and dried tea Confections such as salted caramel, fudge, marshmallow bars, chocolate covered marshmallow, nuts, and hard candy, or any combination thereof Vegetable and potato chips Marshmallows that do not contain eggs Dried fruit Granola, cereals, and trail mixes Nut mixes and nut butters Waffle cones and pizelles Buttercream frosting, buttercream icing, buttercream fondant, and gum paste that do not contain eggs, cream, or cream cheese Ground chocolate Popcorn balls (California Department of Public Health, 2015) July 2015 7 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest As the author is primarily interested in baking, majority of these products were not considered, and only those that are normally sold in bakeries such as cakes, pies, tarts, etc. were believed to be the best options to sell. However, as per primary research, it is recommended to consider additional research into other profitable products as 21% from a total of 48 respondents rarely buy baked products. Figure 5: Percentage values showing how often consumers buy bakery products According to The National Restaurant Association's (NRA) 'What's Hot in 2015' survey conducted in 2014, the graph below shows a quick snapshot of products that can be considered for sale in a home bakery: Figure 6: Percentage values of food trends in 2015 July 2015 8 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest Based on the above graph as well as personal preferences of the author, the following products were determined to be the best products to sell: 1. Mini-Desserts: It's preferable to consider local and seasonal produce for baking mini-pies, bars, cakes, cookies and tarts that need not be refrigerated. 2. Gluten-Free Cuisine: This has been considered a perennial favorite since 2009, and while there is an increase in people thinking it's yesterday's news, it is still popular. 3. All-Natural, Locally Sourced Cakes & Bakes: This means preparing baked goods from all-natural ingredients and no preservatives as well as ensuring ingredients are purchased from local sources such as farmers markets. After primary research:  Mini baked goods were determined to be the most popular choice (4.25 mean).  The least popular item was gluten free desserts with a large number of people mentioning they were not allergic to gluten. Figure 7: Mean values* for which 3 food trends are most likely to be purchased from a home bakery *Mean value for the scale: 1 - Very Unlikely, 2 - Somewhat Unlikely, 3 - Neither Likely Nor Unlikely, 4 - Somewhat Likely, 5 - Very Likely  July 2015 An interesting statistic is that very few home bakeries from those surveyed offered savory baked goods (13.33%). It might be a good option to offer a few due to low competition. 9 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest Figure 8: Percentage values showing whether home bakers sell sweet or savory items Requirements a) Pricing  As mentioned earlier, since majority of the people surveyed purchase from retail stores, it's important to price carefully, and stress value of products sold (such as seasonal ingredients, very fresh etc.)  54% of consumers surveyed said they would buy products that are priced between $5-$10. Products that are priced less than $5 came in next as the preferred option. Proper valuation of time spent on baking, and ensuring use of appropriately priced ingredients as well as other expenses is key to guarantee products are priced correctly to ensure profit. Figure 9: Percentage values showing the price consumers are willing to pay for home baked goods b) Expenses For a home bakery in Mountain View, the following expenses may occur, according to Cristin Sohm of Cristin’s Cookies, 2013, and MountainView.gov, 2013:  Food Handlers Training and Certificate: $13 July 2015 10 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest          Product food labels: $30-$289 (Various websites) Cottage Food Operation Permit: $219 for Class A & $635 for Class B Business License: The City of Mountain View business license costs $30, plus a required State fee of $1 per year Sellers Permit: Free to apply online through the State of California Board of Equalization. Insurance: Starting at $299 per year (https://www.fliprogram.com/cottage-food-law-insurance) Farmers Markets & Other Events: $99/year for Farmers Markets & $99/event Taxes (federal and state): Varies Ingredients: Varies Miscellaneous such as delivery costs: Varies c) Equipment Required  Oven: Existing one in kitchen can be used.  Refrigerator: Existing one to be used.  Proof Box: Home cook's proof box can be used at a cost of $150-$160.  Baking sheets, cake tins, muffin tin, mini molds and racks: Depending on how much baking to be done and demand. Existing ones to be used initially.  Mixers: Three existing ones to be used.  Work Tables: Existing work space to be used.  Miscellaneous: Utensils, papers, tools etc. (Demand Media, 2015) Financial Viability a) Potential Revenue  As per the California Homemade Food Act, a CFO is not allowed to exceed $50,000 revenue per year.  According to a survey done of home bakers, 40% believe the amount is just right, while 20% believe it's very low. Figure 10: Percentage values showing whether home bakers believe the revenue limit is too low or too high July 2015 11 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest  In spite of people believing that the revenue limit was enough or low, majority (77%) of the respondents of the survey believe that they will not hit the limit. Figure 11: Percentage values showing whether home bakers believe they can hit the revenue limit  The various reasons given were mainly smaller scale production and restricted deliveries. Some of the respondents also mentioned that they only baked for supplemental income and/or as a hobby. Figure 12: Absolute values showing possible reasons for home bakers not reaching the revenue limit b) Supplementary Income & Next Steps  100% of all home bakers surveyed believe that the amount earned from their home bakeries is not enough  However, only 87% believe they need another job to supplement the income received. This could be because the remainder (13%) may have another source of income or another family member earning. July 2015 12 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest Figure 13: Cross tabulation showing whether home bakers believe revenue earned is enough and whether they need another job  A large number of the respondents would prefer to continue as a home bakery, with only 2 mentioning that they would consider opening a commercial bakery. Figure 14: Percentage values showing possible next steps for home bakers  Most of the respondents believe that what they do is hobby, and a good way to make some money off of it, but a few are concerned that over regulation and the fees needed are detrimental to their business. Laws a) The Act (Forrager, 2015)  According to The California Homemade Food Act, a person can legally prepare non-potentially hazardous foods from their personal kitchens.  These foods can be sold on a small-scale to consumers- either directly or indirectly.  There are two levels of homemade food producers- Class A and Class B.  Sales are, for both classes, limited to an annual amount of $50,000.  California’s law allows cottage food operations to have only one non-family employee.  The below table, from ChangeLab Solutions, 2013, mentions Santa Clara County Cottage Food Permits sales, requirements and fees for Class A and Class B: July 2015 13 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest Allowed Sales Examples Permit Fee Permit Requirements Class A Permit: Direct Sales Only Direct Sales: Selling directly or “face-toface” with your customers (no Fedex or third party) Direct Sales Allowed Range: Anywhere in California • • • • • From home Farmers’ market Community Supported Agriculture (CSA) Holiday craft fair Online (must deliver in person) $219/year Plus $219/hr for complaint inspection or re-inspection Additional fees required for selling at a certified farmers’ market ($99/year) or a public event such as a bake sale, holiday party, or festival ($99/event) • • • • • • Permit Application Documentation of Planning Dept Approval Certificate of complete Food Handler/Processor Course Sample Label Proof of Potable Water onsite Proof of Sanitary Sewage Disposal Class B Permit: Direct AND Indirect Sales Same as above, AND: Indirect Sales: Selling to other businesses that will then resell your product to customers Indirect Sales Allowed Range: Within the county where the product was made Same as above, and: • Retail food stores • Restaurants • Other third parties (e.g., a food truck, day care center, or vending machine operator) $635/year Plus $219/hr for complaint inspection or re-inspection Additional fees required for selling at a certified farmers’ market ($99/year) or a public event such as a bake sale, holiday party, or festival ($99/event) • • • • • • • Permit Application Documentation of Planning Dept Approval Certificate of complete Food Handler/Processor Course Sample Label Proof of Potable Water onsite Proof of Sanitary Sewage Disposal Annual Onsite Inspection Required Figure 15: Table showing Class A & Class B Requirements b) Operational Requirements for CFOs in Mountain View  The home bakery must operate in a structure, which is clearly primarily used as a residence.  There should be no modifications made that are not ordinarily found in a residence.  There should be no window or advertising sign on the premises.  The use shall not eliminate any parking for others.  Only one vehicle may be used- capacity no greater than ¾ of a ton. July 2015 14 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest   There should be no flammable, explosive or hazardous material stored. Only odors, fumes, noises, smoke, and other secondary effects consistent with home food preparations will be allowed.  The use shall not generate more than two deliveries per day.  Dining at the premises is prohibited (as part of the home food production business) (MountainView.gov, 2013) c) Legal Requirements     Standardized Kitchen Space: The at-home bakery must have a sanitized kitchen space. Pets and children are only not allowed to be present in the kitchen during food production. The California Department of Public Health must perform an inspection before start. If the kitchen space passes inspection, a license is issued. Baking Business License: All at-home bakeries must apply for a basic business license. It is possible to use the owner's social security number and legal name and apply for a license from the local county's clerk office. Business Taxes: Taxes must also be filed using the owner's social security number even if it's a part time business, as this counts as secondary income. Food Handler Certification: It is necessary for the baker to get a food handler certification from the California Department of Environment Health and Safety within three months of becoming registered. (Demand Media, 2015) d) Labeling The label should include:  "Made in a Home Kitchen” in 12-point type.  The name commonly used for the food product.  The name of the cottage food operation, which produced the cottage food product.  The permit number (If “Class B”, also include the name of the county of the local enforcement agency that issued the permit number.)  The ingredients, in descending order of weight  For non-labeled items that are served at a restaurant, café etc., the item should be properly identified as homemade on the menu or menu board or any other prominent location. (Wyshak, 2015) e) Restrictions As per the current law, there are a number of restrictions placed on operating a cottage food operation, specifically a home bakery:  No cream filled, custard filled, cream topped or other baked goods that need to be refrigerated: This excludes a large number of popular items such as cheesecakes, cream cheese frosted cakes etc.  Only $50,000 per year of annual sales: In the Bay Area, this may not be enough to live on, and can, as such, be considered only as supplementary income. July 2015 15 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest  Restricted number of deliveries: In Mountain View, a vehicle used for home bakeries can only be used for 2 deliveries per day. Conclusions       It is very clear that a home bakery must only use the primary residence's kitchen, and cannot use or rent a commercial kitchen. There does not seem to be a problem having a pet in the house, as long as the pet does not enter the kitchen when production is going on. However, as mentioned, the limited amount of annual sales allowed, as well as limited number of deliveries, means it is not possible to earn enough to make a living in the expensive Bay Area. It is also not possible to use a third-party delivery service, as the rules clearly mention that the deliveries must be done in person. One interesting thing was that, while frosting with cream, milk or cream cheese may not be used, it is possible to use buttercream frosting or ganache without the addition of cream. This was added in an amendment made in January 2015. As such, this increases the possibility of more attractive products that can be sold, possibly whetting the interest of the audience. Expenses are expected to start at $491 for the first year (not including cost of ingredients, utilities and taxes) Recommendations 1. As derived from research, it is recommended to open a Class A Cottage Food Operation. Registration is cheaper than Class B, instructions are clear-cut, and the list of approved foods is unambiguous. It can be switched to Class B, in the following year, if it's felt that sales aren't enough from just direct sales. 2. Obtain sellers permit. 3. Obtain business license 4. Buy packaging material and labels 5. Create website to promote products and take orders for deliveries. Additionally, explore other areas for promotion. Actively promote products as being of highest quality, fresh and other high value promotions. 6. Create plan for delivery where only deliveries over a certain price threshold will be undertaken. 7. Contact events' managers, farmer market organizers etc. to set up a stall and ensure distribution of free samples at all events 8. Create a business and marketing plan for the year 9. Sell mini baked goods made from seasonal ingredients as the main product, but consider doing further research into additional product lines that are not necessarily home baked goods. 10. Determine the pricing strategy which will allow most products to be in the $5-$10 range. 11. Constantly educate potential customers on safety measures taken, and benefits of buying from home bakeries (supporting local, no artificial ingredients etc.) 12. Open the home bakery only as a source of supplementary income, as the revenue received will not likely be enough to earn a living off of in the Bay Area. July 2015 16 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest Appendices References Forrager (2015). California. Retrieved from http://forrager.com/law/california/ ChangeLab Solutions (2013). New Food Rules For San Jose. Retrieved from http://healthtrust.org/wpcontent/uploads/2013/11/New_Food_Rules_San-Jose_FINAL_20130506-lo.pdf MountainView.gov (2013). Cottage Food Operations Information. Retrieved from http://mountainview.gov/civicax/filebank/blobdload.aspx?BlobID=13383 Demand Media (2015). The Requirements for an At-Home Bakery Business in California. Retrieved from http://smallbusiness.chron.com/requirements-athome-bakery-business-california-12444.html California Department of Public Health (2015). Approved Cottage Foods. Retrieved from http://www.cdph.ca.gov/programs/Documents/fdbCFOfoodslist.pdf Wyshak. S. (2015). How to Start a Food Business in California With the Cottage Food Law. Retrieved from http://foodstarter.com/how-to-start-a-food-business-in-california-with-the-cottage-foodlaw/#sthash.YCPUbqoJ.dpuf Sohm, C. (2013). Starting A Cottage Food Operation in California. Retrieved from http://cookieconnection.juliausher.com/fileSendAction/fcType/5/fcOid/353843618669134329/fodoid/35384361 8669134327/Starting%20A%20Cottage%20Food%20Operation%20in%20California.pdf NRA (2015). Culinary Forecast. Retrieved from http://www.iddba.org/pdfs/wis/NRA%20What%27s%20Hot%202015%20-%20Top%20Food%20Trends.pdf Demand Media (2015). List of Items Needed to Start a Small Bakery. Retrieved from http://smallbusiness.chron.com/list-items-needed-start-small-bakery-21051.html July 2015 17 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest Questions For Home Bakers' Survey Hi, I'd love if you could take 5-10 minutes to answer a quick survey on operating a home bakery according to the California Homemade Food Act. It's for my Market Research class at UCSC Silicon Valley Extension. I promise the results are confidential. Thanks! Q2 Do you run a home bakery (according to Cottage Food Operations regulations) in the Bay Area?  Yes  No If No Is Selected, Then Skip To End of Survey Skip Logic Q3 What kind of baked food products do you sell? (Check all that apply)  Sweet Items (desserts, cookies etc.)  Savory Items (vegetable muffins, breads, empanadas etc.)  Other: Q4 How long has your home bakery been operational?  Less than a month  1 month - 3 months  4 months - 6 months  7 months - 1 year  Longer than a year If Less than a month Is Selected, Then Skip To End of Survey Skip Logic Q5 According to the CFO regulations in California, the revenue limit is $50,000 annually. Do you believe this is:  Very Low  Somewhat Low July 2015 18 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest  Just right  Somewhat High  Very High If Somewhat High Is Selected, Then Skip To Do you believe the amount you earn fr... If Very High Is Selected, Then Skip To Do you believe the amount you earn fr... Skip Logic Skip Logic Q6 How likely is it that you will reach the revenue max of $50,000 this year?  Very Unlikely  Somewhat unlikely  Undecided  Somewhat Likely Very Likely  Q7 Display This Question: If How likely is it that you will reach the revenue max of $50,000 this year? Very Unlikely Is Selected Or How likely is it that you will reach the revenue max of $50,000 this year? Somewhat unlikely IsSelected Why do you think it isn’t possible to hit this limit? (Check All That Apply)  Restricted delivery  Restricted product line (no unrefrigerated items, no uncooked dairy etc.)  Competition from commercial bakeries  Small scale production  Other: Q8 Do you believe the amount you earn from your home bakery is sufficient to live off of as your main source of income? July 2015 19 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest  Yes  No Q9 Do you think you need another job to supplement this income?  Yes  No Q10 What will be your next step?  Discontinue the home bakery  Continue as a home bakery  Open a commercial kitchen  Explore other products as a cottage food operation  Other: Q11 What else would you like to share about your experience in operating a home-based bakery? July 2015 20 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest Results For Home Bakers' Survey 1. Do you run a home bakery (according to Cottage Food Operations regulations) in the Bay Area? # Answer Response % 1 Yes 15 38% 2 No 25 63% Total 40 100% Statistic Min Value Max Value Mean Variance Standard Deviation Total Responses 2. What kind of baked food products do you sell? (Check all that apply) # Answer Sweet Items 1 (desserts, cookies etc.) Savory Items (vegetable 2 muffins, breads, empanadas etc.) 3 Other: Value 1 2 1.63 0.24 0.49 40 Response % 12 80% 2 13% 1 7% Other: custom cakes Statistic Min Value Max Value Total Responses July 2015 Value 1 3 15 21 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest 3. How long has your home bakery been operational? # Answer Less than a 1 month 1 month - 3 2 months 4 months - 6 3 months 7 months - 1 4 year Longer than a 5 year Total Statistic Min Value Max Value Mean Variance Standard Deviation Total Responses Response % 0 0% 2 13% 1 7% 1 7% 11 73% 15 100% Value 2 5 4.40 1.26 1.12 15 4. According to the CFO regulations in California, the revenue limit is $50,000 annually. Do you believe this is: # Answer Response % 1 Very Low 3 20% 2 Somewhat Low 4 27% 3 Just right 6 40% 4 Somewhat High 1 7% 5 Very High 1 7% Total 15 100% Statistic Min Value Max Value Mean Variance Standard Deviation Total Responses July 2015 Value 1 5 2.53 1.27 1.13 15 22 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest 5. How likely is it that you will reach the revenue max of $50,000 this year? # Answer Response 1 Very Unlikely 9 Somewhat 2 1 unlikely 3 Undecided 1 Somewhat 4 0 Likely 5 Very Likely 2 Total 13 Statistic Min Value Max Value Mean Variance Standard Deviation Total Responses % 69% 8% 8% 0% 15% 100% Value 1 5 1.85 2.31 1.52 13 6. Why do you think it isn’t possible to hit this limit? (Check All That Apply) # Answer Response Restricted 1 4 delivery Restricted product line (no unrefrigerated 2 1 items, no uncooked dairy etc.) Competition from 3 1 commercial bakeries Small scale 4 7 production 5 Other: 3 % 40% 10% 10% 70% 30% Other: this is side business for me and I don't have enough hours in the day. The time that it takes to make decorated cookies does not allow for huge revenue. It's great for supplemental income and doing what I want with my time, but much too time consuming to try to make big money. I'm doing what I love and that's what matters to me at this point. July 2015 23 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest Statistic Min Value Max Value Total Responses Value 1 5 10 7. Do you believe the amount you earn from your home bakery is sufficient to live off of as your main source of income? # Answer Response % 1 Yes 0 0% 2 No 15 100% Total 15 100% Statistic Min Value Max Value Mean Variance Standard Deviation Total Responses 8. Do you think you need another job to supplement this income? # Answer 1 Yes 2 No Total Statistic Min Value Max Value Mean Variance Standard Deviation Total Responses July 2015 Value 2 2 2.00 0.00 0.00 15 Response 13 2 15 % 87% 13% 100% Value 1 2 1.13 0.12 0.35 15 24 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest 9. What will be your next step? # Answer Discontinue the 1 home bakery Continue as a 2 home bakery Open a 3 commercial kitchen Explore other products as a 4 cottage food operation 5 Other: Total Response % 0 0% 11 73% 2 13% 1 7% 1 15 7% 100% Other: still deciding Statistic Min Value Max Value Mean Variance Standard Deviation Total Responses July 2015 Value 2 5 2.47 0.84 0.92 15 25 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest 10. What else would you like to share about your experience in operating a home-based bakery? Text Response nothing n/a You must select a profitable product, otherwise it is a waist of time, money and energy. Over regulation is killing me. The gross sales cap is horrible and makes it ridiculously difficult to make a wage and invest in my growth as a business. Thanks for the survey. It is hard work. It takes a toll on both your body and emotions. . I like being able to operate at my own pace, at my own hours, but it would be nice to be able to ship my product without a Class B license. The taxes and fees in California are incredibly high and daunting to many people. Other areas of California are more manageable but in the Bay Area, it is $219 for a Class A CFO permit and over $600 for a Class B permit, plus $233 City of San Jose zoning, $151 business tax certificate, $800 LLC fee and $223 insurance on my company. You have to really love what you do to pay this kind of yearly taxes and fees to sell some homemade decorated cookies! I'm very happy that the CFO bill passed and my customers are very thankful for my business, but in other counties of California, the fees are much more manageable in support of small businesses. Nothing Recently we contacted the state dept of health to add merengue powder to an approved list of ingredients. It's a pasteurized product and therefore safe to use vs. egg white when making royal icing. They would not approve it which stalls our business operations. I ran circles around the argument citing zero incidents of food poisoning, the food safe handling training we are required to take (which means we know how to safely handle the product). There was no good explanation provided so I felt they we untrained on their end. provides great opportunity to give business ideas a try without prohibitively high financial investment health dept needs to crack down on all illegal businesses - auto, food, etc. I decorate cookies and do it for enjoyment more than to make a lot of money. I view it as a way to make a little money off a passion/hobby Statistic Total Responses July 2015 Value 14 26 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest Questions for Consumers Survey Hi, I'd love if you could take 10-15 minutes to answer this quick survey that will help me figure out the buying habits of consumers when purchasing baked food products. It's for my Market Research class at UCSC Silicon Valley Extension. I promise the results are confidential. Thanks! Q2 1. Where do you live?  San Francisco Bay Area, CA  New York City, NY  Austin, TX  Boston, MA  Las Vegas, NV  Other: If New York City, NY Is Selected, Then Skip To End of Survey Skip Logic If Austin, TX Is Selected, Then Skip To End of Survey Skip Logic If Boston, MA Is Selected, Then Skip To End of Survey Skip Logic If Las Vegas, NV Is Selected, Then Skip To End of Survey Skip Logic If Other: Is Selected, Then Skip To End of Survey Skip Logic Q3 Which Bay Area County are you from?  Alameda County  Contra Costa County  Marin County  Napa County  San Francisco County  San Mateo County July 2015 27 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest  Santa Clara County  Solano County  Sonoma County  Other: If Contra Costa County Is Selected, Then Skip To End of Survey Skip Logic If Marin County Is Selected, Then Skip To End of Survey Skip Logic If Napa County Is Selected, Then Skip To End of Survey Skip Logic If Solano County Is Selected, Then Skip To End of Survey Skip Logic If Sonoma County Is Selected, Then Skip To End of Survey Skip Logic If Other: Is Selected, Then Skip To End of Survey Skip Logic Q4 How often do you buy baked food items such as cakes, cookies, tarts, breads etc.?  Never  Rarely  Sometimes  Somewhat Often  Very Often If Never Is Selected, Then Skip To End of Survey Skip Logic If Rarely Is Selected, Then Skip To End of Survey Skip Logic Q5 Please rate on a scale how important are the following options to you when buying baked goods July 2015 28 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest Not at all Important Somewhat Unimportant Neither Important nor Unimportant Somewhat Important Very Important Taste Health Certifications How it Looks Price Food Allergies Q6 Display This Question: If Please rate on a scale how important are the following options to you when buying baked goods Food Allergies - Somewhat Important Is Selected Edit Or Please rate on a scale how important are the following options to you when buying baked goods Food Allergies - Very Important Is Selected Edit What food allergies do you consider when buying baked goods? Q7 How often do you buy baked goods from the following? Never Rarely Sometimes Somewhat Very Often Often Commercial Bakery Retail Stores/Grocery Stores Home Bakeries If Home Bakeries - Somewhat Often Is Selected, Then Skip To How likely are you to buy each of the... Skip Logic If Home Bakeries - Very Often Is Selected, Then Skip To How likely are Skip you to buy each of the... Logic July 2015 29 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest Never Rarely Sometimes Somewhat Very Often Often Q8 If a home bakery (operating under the California Homemade Food Act which allows home kitchens to make and sell non-potentially hazardous foods) opened up near your house, how likely would you be to purchase from them?  Very Unlikely  Somewhat Unlikely  Neither Likely or Unlikely  Somewhat Likely  Very Likely If Very Unlikely Is Selected, Then Skip To Why would you not purchase from a hom... Skip Logic If Somewhat Unlikely Is Selected, Then Skip To Why would you not purchase from Skip a hom... Logic Q9 For safety reasons, home bakeries (operating under the California Homemade Food Act) cannot sell items with uncooked cream, milk and cream cheese or any other items that need to be refrigerated. Given that, would you still consider purchasing from them?  Definitely will not  Probably will not  Don't know  Probably will  Definitely will Q10 Display This Question: If For safety reasons, home bakeries (operating under the California Homemade Food Act) cannot sell...Definitely will not Is Selected Edit Or For safety reasons, home bakeries (operating under the California Homemade Food Act) cannot sell...Probably will not Is Selected Edit July 2015 30 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest Why not? If Why not? Is Not Empty, Then Skip To Is there anything else you would like... Skip Logic Q11 How likely are you to buy each of the following types of items from a home bakery? Neither Somewhat Likely Nor Somewhat Very Unlikely Unlikely Unlikely Likely Very Likely Mini Baked Goods with Seasonal Ingredients Gluten Free Baked Goods Baked Goods Made From Locally Sourced Ingredients Q18 Display This Question: If How likely are you to buy each of the following types of items from a home bakery? Mini Baked Goods with Seasonal Ingredients - Very Unlikely Is Selected Edit Or How likely are you to buy each of the following types of items from a home bakery? Mini Baked Goods with Seasonal Ingredients - Somewhat Unlikely Is Selected Edit Why would you not purchase mini baked goods made with seasonal ingredients? Q20 Display This Question: If How likely are you to buy each of the following types of items from a home bakery? Gluten Free Baked Goods - Very Unlikely Is Selected Edit Or How likely are you to buy each of the following types of items from a home bakery? Gluten Free Baked Goods - Somewhat Unlikely Is Selected Edit Why would you not purchase gluten free baked goods? Q21 July 2015 31 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest Display This Question: If How likely are you to buy each of the following types of items from a home bakery? Baked Goods Made From Locally Sourced Ingredients - Very Unlikely Is Selected Edit Or How likely are you to buy each of the following types of items from a home bakery? Baked Goods Made From Locally Sourced Ingredients - Somewhat Unlikely Is Selected Edit Why would you not purchase baked goods made from locally sourced ingredients? Q12 How much are you willing to pay for home baked products such as a dozen cookies or a slice of cake?  Less than $5  $5-$10  Over $10 Q13 How important is it that you get to taste samples before you purchase a baked product?  Not at all Important  Somewhat Unimportant  Neither Important nor Unimportant  Somewhat Important  Very Important Q14 In order of preference, rank how you would like to receive/buy baked goods from a home bakery 1 2 3 Pick up from residential location of home kitchen Farmers markets/events Home delivery Q15 Display This Question: If If a home bakery (operating under the California Homemade Food Act which allows home kitchens to... Very Unlikely Is Selected Edit Or If a home bakery (operating under the California Homemade Food Act which allows home kitchens to...Somewhat Unlikely Is Selected Edit Why would you not purchase from a home bakery? (Check all that apply)  I do not trust the products being prepared at a home kitchen July 2015 32 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest  I'm unsure on how often health and safety checks are done on home kitchens  Limited choice of baked goods (no refrigerated items)  Smaller scale of production  Do not know of any/haven't tried any  Need more information  Other: Q16 Is there anything else you would like to share about your feelings about home-based bakeries/baked goods? July 2015 33 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest Results For Consumers' Survey 1. 1. Where do you live? # Answer San Francisco 1 Bay Area, CA New York City, 2 NY 3 Austin, TX 4 Boston, MA 5 Las Vegas, NV 6 Other: Total Response % 51 91% 0 0% 0 0 0 5 56 0% 0% 0% 9% 100% Statistic Min Value Max Value Mean Variance Standard Deviation Total Responses 2. Which Bay Area County are you from? # Answer Alameda 1 County Contra Costa 2 County 3 Marin County 4 Napa County San Francisco 5 County San Mateo 6 County Santa Clara 7 County 8 Solano County 9 Sonoma County 10 Other: Total July 2015 Value 1 6 1.45 2.07 1.44 56 Response % 4 8% 0 0% 0 0 0% 0% 3 6% 6 12% 35 69% 0 1 2 51 0% 2% 4% 100% 34 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest Other: Santa Cruz ci Sunnyvale Statistic Min Value Max Value Mean Variance Standard Deviation Total Responses Value 1 10 6.45 3.37 1.84 51 3. How often do you buy baked food items such as cakes, cookies, tarts, breads etc.? # Answer Response 1 Never 0 2 Rarely 10 3 Sometimes 14 Somewhat 4 15 Often 5 Very Often 9 Total 48 Statistic Min Value Max Value Mean Variance Standard Deviation Total Responses July 2015 % 0% 21% 29% 31% 19% 100% Value 2 5 3.48 1.06 1.03 48 35 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest 4. Please rate on a scale how important are the following options to you when buying baked goods Neither Not at all Somewhat Important Somewhat Very Total # Question Mean Important Unimportant nor Important Important Responses Unimportant 1 Taste 0.00% 0.00% 0.00% 5.41% 94.59% 37 4.95 Health 2 16.22% 8.11% 16.22% 27.03% 32.43% 37 3.51 Certifications How it 3 2.70% 2.70% 2.70% 40.54% 51.35% 37 4.35 Looks 4 Price 2.70% 16.22% 8.11% 62.16% 10.81% 37 3.62 Food 5 48.65% 5.41% 13.51% 10.81% 21.62% 37 2.51 Allergies 5. What food allergies do you consider when buying baked goods? Text Response Gluten Oral, skin rashes Nut Peanuts Nothing Specific nuts No allergies, otherwise nuts or gluten Gluten All i know off shellfish Nonr Statistic Total Responses Value 11 6. How often do you buy baked goods from the following? # 1 2 3 July 2015 Question Commercial Bakery Retail Stores/Grocery Stores Home Bakeries Never Rarely Sometimes Somewhat Often Very Often Total Responses Mean 11.11% 19.44% 30.56% 19.44% 19.44% 36 3.17 2.78% 11.11% 25.00% 16.67% 44.44% 36 3.89 27.78% 36.11% 25.00% 8.33% 2.78% 36 2.22 36 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest Statistic Min Value Max Value Mean Variance Standard Deviation Total Responses Commercial Bakery 1 5 3.17 1.63 1.28 36 Retail Stores/Grocery Stores 1 5 3.89 1.42 1.19 36 Home Bakeries 1 5 2.22 1.09 1.05 36 7. If a home bakery (operating under the California Homemade Food Act which allows home kitchens to make and sell non-potentially hazardous foods) opened up near your house, how likely would you be to purchase from them? # Answer Response % 1 Very Unlikely 0 0% Somewhat 2 4 13% Unlikely Neither Likely 3 3 10% or Unlikely Somewhat 4 16 52% Likely 5 Very Likely 8 26% Total 31 100% Statistic Min Value Max Value Mean Variance Standard Deviation Total Responses July 2015 Value 2 5 3.90 0.89 0.94 31 37 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest 8. For safety reasons, home bakeries (operating under the California Homemade Food Act) cannot sell items with uncooked cream, milk and cream cheese or any other items that need to be refrigerated. Given that, would you still consider purchasing from them? # Answer Response % Definitely will 1 1 4% not Probably will 2 1 4% not 3 Don't know 9 35% 4 Probably will 12 46% 5 Definitely will 3 12% Total 26 100% Statistic Min Value Max Value Mean Variance Standard Deviation Total Responses Value 1 5 3.58 0.81 0.90 26 9. Why not? Text Response Need to know items are stored in required temperature Heath hazard Statistic Total Responses July 2015 Value 2 38 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest 10. How likely are you to buy each of the following types of items from a home bakery? Neither Very Somewhat Likely Somewhat Very Total # Question Unlikely Unlikely Nor Likely Likely Responses Unlikely Mini Baked Goods 1 3.57% 0.00% 10.71% 39.29% 46.43% 28 with Seasonal Ingredients Gluten Free 2 25.00% 3.57% 32.14% 17.86% 21.43% 28 Baked Goods Baked Goods Made 3 From 0.00% 3.57% 17.86% 46.43% 32.14% 28 Locally Sourced Ingredients Statistic Min Value Max Value Mean Variance Standard Deviation Total Responses Mini Baked Goods with Seasonal Ingredients 1 5 4.25 0.86 0.93 28 Gluten Free Baked Goods 1 5 3.07 2.14 1.46 28 Mean 4.25 3.07 4.07 Baked Goods Made From Locally Sourced Ingredients 2 5 4.07 0.66 0.81 28 11. Why would you not purchase mini baked goods made with seasonal ingredients? Text Response sounds like something I'd make myself Statistic Total Responses July 2015 Value 1 39 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest 12. Why would you not purchase gluten free baked goods? Text Response Not allergic to Gluten or averse to Gluten food not allergic to gluten gluten is the best I have no reason to avoid gluten Don't need them The whole fad is stupid It is not a problem for me It's not important to me Statistic Total Responses Value 8 13. Why would you not purchase baked goods made from locally sourced ingredients? Text Response Depends on the quality of the bakery and the bakery items they are selling Statistic Total Responses Value 1 14. How much are you willing to pay for home baked products such as a dozen cookies or a slice of cake? # Answer Response % 1 Less than $5 12 43% 2 $5-$10 15 54% 3 Over $10 1 4% Total 28 100% Statistic Min Value Max Value Mean Variance Standard Deviation Total Responses July 2015 Value 1 3 1.61 0.32 0.57 28 40 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest 15. How important is it that you get to taste samples before you purchase a baked product? # Answer Response Not at all 1 1 Important Somewhat 2 4 Unimportant Neither 3 Important nor 5 Unimportant Somewhat 4 13 Important 5 Very Important 5 Total 28 Statistic Min Value Max Value Mean Variance Standard Deviation Total Responses % 4% 14% 18% 46% 18% 100% Value 1 5 3.61 1.14 1.07 28 16. In order of preference, rank how you would like to receive/buy baked goods from a home bakery Total # Answer 1 2 3 Responses Pick up from residential 1 21.43% 50.00% 28.57% 28 location of home kitchen Farmers 2 32.14% 21.43% 46.43% 28 markets/events 3 Home delivery 46.43% 28.57% 25.00% 28 Total 28 28 28 - July 2015 41 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest Statistic Min Value Max Value Mean Variance Standard Deviation Total Responses Pick up from residential location of home kitchen 1 3 2.07 0.51 0.72 28 Farmers markets/events Home delivery 1 3 2.14 0.79 0.89 28 1 3 1.79 0.69 0.83 28 17. Why would you not purchase from a home bakery? (Check all that apply) # Answer Response I do not trust the products being 1 1 prepared at a home kitchen I'm unsure on how often health and safety 2 3 checks are done on home kitchens Limited choice of baked goods 3 0 (no refrigerated items) Smaller scale of 4 0 production Do not know of 5 any/haven't tried 1 any Need more 6 2 information 7 Other: 0 % 25% 75% 0% 0% 25% 50% 0% Other: Statistic Min Value Max Value Total Responses July 2015 Value 1 6 4 42 Bay Area Home Bakery- Laws, Requirements, Financial Viability, Potential Interest 18. Is there anything else you would like to share about your feelings about home-based bakeries/baked goods? Text Response Personalize cakes / baked items and also target mothers (birthday cakes) There should be more! Always go to bakeries who have an established presence and consistent quality, difficult to leave your old bakery for a new one Kitchen should be clean No A good word of mouth is what would make me go for home based baked goods Chow yums! no None I would be concerned about safety. no no Nope Prefer healthy choices No No support home based bakeries Just that I support the idea Pls open one! I also buy them at the coffee shop Good variety and competitive pricing is what a consumer looks for No No Thanks I love your cookies Sohna. I would surely buy them at any price No The cost might be high it should be whole wheat N/a No No no cost no Statistic Total Responses July 2015 Value 34 43 Secondary Research Report: Opening A Home Bakery In The Bay Area: Laws, Requirements, Financial Viability and Potential Interest By XXXX UCSC Silicon Valley Extension 2 Table of Contents: Objective & Hypothesis……………………………………………………….............3 Background……………………………………………………………………………3 The Law………………………………………………………………………………..3 Operational Requirements for CFOs.…………………………………………..……...5 Legal Requirements……………………………………………………………………5 Approved Food Products List (as of January 2, 2015)………………………………...5 Labeling………………………………………………………………………………..6 Expenses……………………………………………………………………………….6 Equipment Required…………………………………………………………………...6 Product and Target Audience Considerations…………………………………………7 Restrictions…………………………………………………………………………….7 Conclusions……………………………………………………………………………8 Recommendations……………………………………………………………………..8 Remaining Research Needs……………………………………………………………8 References………………..……………………………………………………………9 3 Objective & Hypothesis: My objective is to understand how to go about opening a home bakery in Mountain View in the Santa Clara County under the California Homemade Food Act. I would like to learn what the requirements are, the level of interest consumers have in purchasing from a home bakery, and whether it's possible to earn a living from the revenue received. My hypothesis is that a home bakery cannot be considered as a main source of income, only supplementary, as it isn't possible to generate enough sales and earn enough profit to make a living. Background: With the introduction of the California Homemade Food Act in 2013, it is now possible to manufacture and sell a limited amount of homemade foods. Home cooks can make what are considered “low-risk foods” from within their home kitchens. A home can include houses and apartments, owned or rented. These enterprises are termed as “Cottage Food Operations" (CFO). While my professional career has always been in Search Engine Marketing, I would love to bake professionally as well. However, the investment needed for a full-scale operation, such as a bakery, is too risky, and not possible at this stage in my life. Baking from home to test the waters, and supplement our income is the perfect alternative. From what I understand, there are a limited amount of items that can be sold, i.e., items that do not require refrigeration. This means cakes with frostings, which are very popular, cannot be sold, which will probably affect revenue and profit. In addition, I understand that dogs are not allowed in the kitchen. I have a dog, and will be interested in learning how to work with this, and whether it might be better exploring a commercial kitchen space instead. Besides those limitations, I am curious to understand whether people would prefer to buy foods from an established bakery in-store or a retail outlet as opposed to a home baker. Would they consider it risky since they can’t quite be assured of the same type of quality and reputation? They cannot also buy anything that needs refrigeration, so would that be a distinct disadvantage? Also, how much would they be willing to pay for home baked products? In addition, as mentioned, my hypothesis is that isn’t possible to live off the income received from a home bakery. I would like to explore this further by surveying people who have started their own home bakeries in California, and understand what their experiences have been. The Law: The law that governs home food preparation businesses comes under the purview of Cottage Food Laws. These laws allow a person to legally prepare non-potentially hazardous foods from their personal kitchens. These foods can be sold on a smallscale to consumers- either directly or indirectly. The California Homemade Food Act (AB 1616) was passed in California on September 21st, 2012, and went into effect on January 1st, 2013. According to this law, there are two levels of homemade food producers- Class A and Class B (Forrager, 2015). The below table, from ChangeLab Solutions, 2013, mentions Santa Clara County Cottage Food Permits for Class A and Class B: 4 Allowed Sales Examples Permit Fee Permit Requirements Class A Permit: Direct Sales Only Direct Sales: Selling directly or “face-toface” with your customers (no Fedex or third party) Direct Sales Allowed Range: Anywhere in California • • • • • $219/year Plus $219/hr for complaint From home inspection or Farmers’ re-inspection market Additional Community fees required Supported for selling at Agriculture a certified (CSA) farmers’ Holiday craft market fair ($99/year) or Online (must a public event deliver in such as a person) bake sale, holiday party, or festival ($99/event) • • • • • • Permit Application Documentation of Planning Dept Approval Certificate of complete Food Handler/Processor Course Sample Label Proof of Potable Water onsite Proof of Sanitary Sewage Disposal Class B Permit: Direct AND Indirect Sales Same as above, AND: Indirect Sales: Selling to other businesses that will then resell your product to customers Indirect Sales Allowed Range: Within the county where the product was made Same as above, and: • Retail food stores • Restaurants • Other third parties (e.g., a food truck, day care center, or vending machine operator) $635/year Plus $219/hr for complaint inspection or re-inspection Additional fees required for selling at a certified farmers’ market ($99/year) or a public event such as a bake sale, holiday party, or festival ($99/event) • • • • • • • Permit Application Documentation of Planning Dept Approval Certificate of complete Food Handler/Processor Course Sample Label Proof of Potable Water onsite Proof of Sanitary Sewage Disposal Annual Onsite Inspection Required It is important to note that sales are, for both classes, limited to an annual amount of $50,000. Another important rule to take note of is that California’s law allows cottage food operations to have only one non-family employee (Forrager, 2015). 5 Operational Requirements for CFOs in Mountain View: 1. The home bakery must operate in a structure, which is clearly primarily used as a residence. 2. There should be no modifications made that are not ordinarily found in a residence. 3. There should be no window or advertising sign on the premises. 4. The use shall not eliminate any parking for others. 5. Only one vehicle may be used- capacity no greater than ¾ of a ton. 6. There should be no flammable, explosive or hazardous material stored. 7. Only odors, fumes, noises, smoke, and other secondary effects consistent with home food preparations will be allowed. 8. The use shall not have more than two deliveries per day. 9. Dining at the premises is prohibited (as part of the home food production business) (MountainView.gov, 2013) Legal Requirements: 1. Standardized Kitchen Space: The at-home bakery must have a sanitized kitchen space. Pets and children are only not allowed to be present in the kitchen during food production. The California Department of Public Health must perform an inspection before start. If the kitchen space passes inspection, a license is issued. 2. Baking Business License: All at-home bakeries must apply for a basic business license. It is possible to use the owner's social security number and legal name and apply for a license from the local county's clerk office. 3. Business Taxes: Taxes must also be filed using the owner's social security number even if it's a part time business, as this counts as secondary income. 4. Food Handler Certification: It is necessary for the baker to get a food handler certification from the California Department of Environment Health and Safety within three months of becoming registered. (Demand Media, 2015) Approved Food Products List (as of January 2, 2015): Baked goods, without cream, custard, or meat fillings Dried pasta Herb blends and dried mole paste Popcorn Cotton candy Candy Chocolate covered non-perishable foods Dried fruit Dry baking mixes Fruit pies Honey and sweet sorghum syrup Vinegar and mustard Candied apples Jams, jellies, preserves Roasted coffee and dried tea Confections such as salted caramel, fudge, marshmallow bars, Granola, cereals, and trail mixes Nut mixes and nut butters Waffle cones and pizelles Buttercream frosting, buttercream icing, buttercream 6 Dried or Dehydrated vegetables Seasoning salt Dried vegetarian based soup mixes Flat icing chocolate covered marshmallow, nuts, and hard candy, or any combination thereof Vegetable and potato chips Marshmallows that do not contain eggs (California Department of Public Health, 2015) fondant, and gum paste that do not contain eggs, cream, or cream cheese Ground chocolate Popcorn balls Labeling: The label should include: 1. "Made in a Home Kitchen” in 12-point type. 2. The name commonly used for the food product. 3. The name of the cottage food operation, which produced the cottage food product. 4. The permit number (If “Class B”, also include the name of the county of the local enforcement agency that issued the permit number.) 5. The ingredients, in descending order of weight For non-labeled items that are served at a restaurant, café etc., the item should be properly identified as homemade on the menu or menu board or any other prominent location. (Wyshak, 2015) Expenses: For a home bakery in Mountain View, the following expenses may occur, according to Cristin Sohm of Cristin’s Cookies, 2013, and MountainView.gov, 2013: 1. Food Handlers Training and Certificate: $13 2. Product food labels: $30-$289 (Various websites) 3. Cottage Food Operation Permit: $219 for Class A & $635 for Class B 4. Business License: The City of Mountain View business license costs $30, plus a required State fee of $1 per year 5. Sellers Permit: Free to apply online through the State of California Board of Equalization. 6. Insurance: Starting at $299 per year (https://www.fliprogram.com/cottagefood-law-insurance) 7. Taxes (federal and state): Varies Equipment Required: 1. Oven: Existing one in kitchen can be used. 2. Refrigerator: Existing one to be used. 3. Proof Box: Home cook's proof box can be used at a cost of $150-$160. 4. Baking sheets, cake tins, muffin tin, mini molds and racks: Depending on how much baking to be done and demand. Existing ones to be used initially. 5. Mixers: Three existing ones to be used. 6. Work Tables: Existing work space to be used. 7. Miscellaneous: Utensils, papers, tools etc. (Demand Media, 2015) 7 Product and Target Audience Considerations: Since a home bakery, as per the California Food Act, can only sell within California, and must make 'face-to-face' direct deliveries, the target audience must be only focused on residents and events within a relatively close driving distance of Mountain View. Consumers must also have the ability to purchase online or in person. It will be useful to determine what product is most likely to be successful based on a survey of potential consumers. According to The National Restaurant Association's (NRA) 'What's Hot in 2015' survey conducted in 2014, the graph below shows a quick snapshot of products that can be considered. The NRA conducted an online survey of 1276 members of the American Culinary Federation by asking them to rate 231 items as hot trends, yesterday's news and perennial favorites. The below items consider trends and foods that can be utilized or prepared in home bakeries, and are considered hot trends and not passé. As per this survey, based on the above graph as well as preferences when I've baked, the following products can be considered: 1. Mini-Desserts: It's preferable to consider local and seasonal produce for baking mini-pies, bars, cakes, cookies and tarts that need not be refrigerated. 2. Gluten-Free Cuisine: This has been considered a perennial favorite since 2009, and while there is an increase in people thinking it's yesterday's news, it is still popular. Regular flour can be replaced with coconut flour or other options and more flourless items can be prepared. 3. All-Natural, Locally Sourced Cakes & Bakes: This means preparing baked goods from all-natural ingredients and no preservatives as well as ensuring ingredients are purchased from local sources such as farmers markets. Thus, the products will be most likely seasonal baked goods, and the availability will change as per what is available in the market. Restrictions: As per the current law, there are a number of restrictions placed on operating a cottage food operation, specifically a home bakery: 8 1. No cream filled, custard filled, cream topped or other baked goods that need to be refrigerated: This excludes a large number of popular items such as cheesecakes, cream cheese frosted cakes etc. 2. Only $50,000 per year of annual sales: In the Bay Area, this may not be enough to live on, and can, as such, be considered only as supplementary income. 3. Restricted number of deliveries: In Mountain View, a vehicle used for home bakeries can only be used for 2 deliveries per day. Conclusions: As derived from my preliminary research, it seems a very straightforward process to open a Class A Cottage Food Operation. Registration is cheaper than Class B, instructions are clear-cut, and the list of approved foods is unambiguous. It is also very clear that a home bakery must only use the primary residence's kitchen, and cannot use or rent a commercial kitchen. There also does not seem to be a problem having a pet in the house, as long as the pet does not enter the kitchen when production is going on. However, as mentioned, the limited amount of annual sales allowed, as well as limited number of deliveries, means it is not possible to earn enough to make a living in the expensive Bay Area. It is also not possible to use a third-party delivery service, as the rules clearly mention that the deliveries must be done in person. This supports my hypothesis that income from a home bakery can only be used as supplementary income. I have not been able to find enough information on whether the restricted food items, as well as fewer health checks, make purchasing from home bakeries less appealing for consumers. One interesting thing I learned was that, while frosting with cream, milk or cream cheese may not be used, it is possible to use buttercream frosting or ganache without the addition of cream. This was added in an amendment made in January 2015. As such, this increases the possibility of more attractive products that can be sold, possibly whetting the interest of the audience. Recommendations: 1. Decide what product or products to be sold based on trend list above and survey of target audience. 1. Apply for Class A permit: It is cheaper, and a good starting point to test waters. It can be switched to Class B, in the following year, if it's felt that sales aren't enough from just direct sales. 2. Obtain sellers permit. 3. Obtain business license 4. Buy packaging material and labels 5. Create website to promote products and take orders for deliveries. Additionally, explore other areas for promotion. 6. Contact events' managers, farmer market organizers etc. to set up a stall 7. Create a business and marketing plan for the year Remaining Research Needs: Secondary research was not easily available to determine the level of interest consumers have for buying products for home bakeries. As such, a survey of Bay Area residents might help to determine this, and other factors such as deliveries and preferred products. 9 In addition, while it was easy to understand the limits on revenue, it wasn't easy to find statistics on how much a home bakery usually earns, and whether they even hit the limit, or if that is an unusual occurrence. Surveying people who have opened a home bakery in the Bay Area, and understanding the ballpark figure they make as well as any other difficulties faced will be helpful. References: Forrager (2015). California. Retrieved from http://forrager.com/law/california/ ChangeLab Solutions (2013). New Food Rules For San Jose. Retrieved from http://healthtrust.org/wp-content/uploads/2013/11/New_Food_Rules_SanJose_FINAL_20130506-lo.pdf MountainView.gov (2013). Cottage Food Operations Information. Retrieved from http://mountainview.gov/civicax/filebank/blobdload.aspx?BlobID=13383 Demand Media (2015). The Requirements for an At-Home Bakery Business in California. Retrieved from http://smallbusiness.chron.com/requirements-athomebakery-business-california-12444.html California Department of Public Health (2015). Approved Cottage Foods. Retrieved from http://www.cdph.ca.gov/programs/Documents/fdbCFOfoodslist.pdf Wyshak. S. (2015). How to Start a Food Business in California With the Cottage Food Law. Retrieved from http://foodstarter.com/how-to-start-a-food-business-incalifornia-with-the-cottage-food-law/#sthash.YCPUbqoJ.dpuf Sohm, C. (2013). Starting A Cottage Food Operation in California. Retrieved from http://cookieconnection.juliausher.com/fileSendAction/fcType/5/fcOid/35384361866 9134329/fodoid/353843618669134327/Starting%20A%20Cottage%20Food%20Oper ation%20in%20California.pdf NRA (2015). Culinary Forecast. Retrieved from http://www.iddba.org/pdfs/wis/NRA%20What%27s%20Hot%202015%20%20Top%20Food%20Trends.pdf Demand Media (2015). List of Items Needed to Start a Small Bakery. Retrieved from http://smallbusiness.chron.com/list-items-needed-start-small-bakery-21051.html 預設報告 How Samsung has been successful in Android world June 15th 2017, 5:21 am MDT Q1 - Do you have an Android operating system smartphone? # Answer % Count 1 Yes 55.56% 15 2 No 44.44% 12 Total 100% 27 Q2 - Please specify your gender: # Answer % Count 1 Male 60.00% 9 2 Female 40.00% 6 3 Prefer not to answer 0.00% 0 Total 100% 15 Q3 - Please specify your age: # Answer % Count 1 17 years or under 6.67% 1 2 18~24 years old 20.00% 3 3 25~34 years old 46.67% 7 4 35~44 years old 20.00% 3 5 45~54 years old 6.67% 1 6 55 years old or older 0.00% 0 Total 100% 15 Q4 - Which brand of smartphone you are currently using? # Answer % Count 1 Samsung 60.00% 9 2 Htc 13.33% 2 3 Nokia 0.00% 0 4 Sony 6.67% 1 5 Motorola 0.00% 0 6 Google 0.00% 0 7 LG 13.33% 2 8 Xiaomi 0.00% 0 9 Other, Please specidy 6.67% 1 Total 100% 15 Other, Please specidy Other, Please specidy apple iPhone Q5 - 1. Why did you choose this brand of smartphone compared to Samsung? # Answer % Count 1 Price is more affordable 26.67% 4 2 Function is better 33.33% 5 3 Shape is better looking 6.67% 1 4 Easier to use 0.00% 0 5 Performance is better 26.67% 4 6 Other (please specify): 6.67% 1 Total 100% 6 # Answer % Count 1 Price is more affordable 26.67% 4 2 Function is better 33.33% 5 3 Shape is better looking 6.67% 1 4 Easier to use 0.00% 0 5 Performance is better 26.67% 4 6 Other (please specify): 6.67% 1 Total 100% 6 Other (please specify): Other (please specify): did't compare Q6 - Are you interested in changing to a different brand of smartphone? # Answer % Count 1 Yes 22.22% 2 2 No 77.78% 7 Total 100% 9 Q7 - What brand(s) of smartphone are you considering switching to? # Answer % Count 1 Apple 100.00% 2 2 HTC 0.00% 0 3 Nokia 0.00% 0 4 Sony 0.00% 0 5 Motorola 0.00% 0 6 Google 0.00% 0 7 LG 0.00% 0 8 Xiaomi 0.00% 0 9 Other, please specify: Other, please specify: Other, please specify: 0.00% 0 Total 100% 2 Q8 - How much do you spend on your telephone fee per month? # Answer % Count 1 Under $30 33.33% 3 2 30 - 40$ 22.22% 2 3 40 - 50$ 22.22% 2 4 50- 60$ 11.11% 1 5 Over $60 11.11% 1 Total 100% 9 Q9 - How long have you been using Samsung? # Answer % Count 1 Less than 3 months 0.00% 0 2 3 - 6 months 33.33% 3 3 7 – 11 months 11.11% 1 4 1 - 2 years 0.00% 0 5 Over 2 years 55.56% 5 Total 100% 9 Q10 - How did you get information about your Samsung phone before you chose it? # Answer % Count 1 Poster published 17.39% 4 2 Text message 0.00% 0 3 Internet search/website 13.04% 3 4 Online reviews 13.04% 3 5 Recommendations from family or friends 26.09% 6 6 TV or social media ads 13.04% 3 7 Newspaper/magazine article or ads 17.39% 4 8 Other (please specify): 0.00% 0 Total Other (please specify): Other (please specify): 100% 9 Q11 - Why did you choose a Samsung phone? # Answer % Count 1 Salesperson recommended 3.45% 1 2 Price promotion 3.45% 1 3 Influenced by family/friends 20.69% 6 4 Multifunctional 17.24% 5 5 Game friendly 6.90% 2 6 Brand reputation 17.24% 5 7 Easy to use 3.45% 1 8 Study or work needed 3.45% 1 9 Fashion/look 6.90% 2 Big screen, good visual experience 17.24% 5 Total 100% 9 10 Q12 - Which of the following were you aware of before this survey? # Answer % Count 1 I know Samsung is from Korea 44.44% 8 2 I know S8 & Note 8 is from Samsung 44.44% 8 3 I know Samsung’s market share is the highest in Android 11.11% 2 Total 100% 9 Q13 - How likely are you to use your Samsung phone for each of the following purposes? Field Mean Call/Text 3.33 Entertainment 4.00 Music 4.22 Photo/Video 4.44 E-book 3.11 Website 3.22 E-mail 2.89 Navigation/GPS 3.78 Data management 3.00 Using apps 3.89 Video calls 4.22 Extremely Unikely Neither Likely nor Unlikely Somewhat Unlikely Somewhat Likely Extremely Likely # Question 1 Call/Text 0.00% 0 14.29% 2 9.76% 4 16.67% 1 5.41% 2 2 Entertainment 100.00% 1 0.00% 0 4.88% 2 16.67% 1 13.51% 5 3 Music 0.00% 0 7.14% 1 4.88% 2 0.00% 0 16.22% 6 4 Photo/Video 0.00% 0 7.14% 1 2.44% 1 0.00% 0 18.92% 7 5 E-book 0.00% 0 7.14% 1 17.07% 7 0.00% 0 2.70% 1 6 Website 0.00% 0 7.14% 1 14.63% 6 16.67% 1 2.70% 1 7 E-mail 0.00% 0 7.14% 1 19.51% 8 0.00% 0 0.00% 0 8 Navigation/GPS 0.00% 0 7.14% 1 7.32% 3 33.33% 2 8.11% 3 9 Data management 0.00% 0 21.43% 3 9.76% 4 16.67% 1 2.70% 1 10 Using apps 0.00% 0 14.29% 2 4.88% 2 0.00% 0 13.51% 5 11 Video calls 0.00% 0 7.14% 1 4.88% 2 0.00% 0 16.22% 6 Total Total 1 Total 14 Total 41 Total 6 Total 37 Q14 - How satisfied are you with each of the following aspects of your Samsung smartphone? Field Mean Shape of smartphone 4.44 Operating system 3.44 Multifunction 4.33 Big Screen 4.44 Price 3.78 Makes me feel I’m a smart consumer 4.00 Reliability 4.11 Overall 4.33 # 1 2 Question Shape of smartphone Operating system Extremely Dissatisfied Somewhat Dissatisfied Neither Satisfied nor Dissatisfied Somewhat Satisfied Extremely Satisfied 0.00% 0 16.67% 1 6.67% 1 0.00% 0 20.00% 7 0.00% 0 0.00% 0 33.33% 5 25.00% 4 0.00% 0 3 Multifunction 0.00% 0 16.67% 1 6.67% 1 6.25% 1 17.14% 6 4 Big Screen 0.00% 0 16.67% 1 6.67% 1 0.00% 0 20.00% 7 5 Price 0.00% 0 0.00% 0 20.00% 3 31.25% 5 2.86% 1 6 Makes me feel I’m a smart consumer 0.00% 0 16.67% 1 13.33% 2 12.50% 2 11.43% 4 7 Reliability 0.00% 0 16.67% 1 13.33% 2 6.25% 1 14.29% 5 8 Overall 0.00% 0 16.67% 1 0.00% 0 18.75% 3 14.29% 5 Total Total 0 Total 6 Total 15 Total 16 Total 35 Q15 - How likely you to do each of the following? Field Mean I will buy more Samsung products in the future 3.78 When it’s time to replace my current phone, I’ll buy another Samsung 3.56 I will recommend Samsung smartphones to my family/friends 3.67 # Question I will buy more Samsung products in the future When it’s time to replace my current 2 phone, I’ll buy another Samsung I will recommend 3 Samsung smartphones to my family/friends 1 Total Extremely Unikely Somewhat Unikely Neither Likely nor Unikely Somewhat Likely Extremey Likely 33.33% 1 20.00% 1 50.00% 2 0.00% 0 35.71% 5 33.33% 1 40.00% 2 25.00% 1 100.00% 1 28.57% 4 33.33% 1 40.00% 2 25.00% 1 0.00% 0 35.71% 5 Total 3 Total 5 Total 4 Total 1 Total 14
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Running head: RESEARCH REPORT ON HOW SAMSUNG IS SUCCESS

Research Report on How Samsung Is Success in the Android World
Name
Institution

1

RESEARCH REPORT ON HOW SAMSUNG SUCCESS IN ANDROID WORLD

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Table of Contents
Executive summary......................................................................................................................... 3
Background: ................................................................................................................................ 3
Introduction ..................................................................................................................................... 5
Background ................................................................................................................................. 5
Research objective ...................................................................................................................... 6
Research question ....................................................................................................................... 7
Methodology ................................................................................................................................... 7
Secondary research ..................................................................................................................... 7
Primary research ......................................................................................................................... 7
The findings .................................................................................................................................... 8
Secondary findings...................................................................................................................... 8
Samsung’s Creative Qualitative Research ................................................................................ 10
Research and Markets: Samsung Company - Smartphone Analysis ........................................ 11
Primary research outcomes ....................................................................................................... 13
Android operating system smartphone ................................................................................. 13
Brand of smartphone being used........................................................................................... 13
Reason for brand choice........................................................................................................ 14
Change for smartphone brand ............................................................................................... 14
Change preference brand ...................................................................................................... 15
Period using Samsung brand ................................................................................................. 16
Getting information about Samsung smartphone ................................................................. 17
Conclusion .................................................................................................................................... 17
Recommendations ......................................................................................................................... 18
Remaining research needs......................................................................................................... 19
References ..................................................................................................................................... 21

RESEARCH REPORT ON HOW SAMSUNG SUCCESS IN ANDROID WORLD

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Executive summary
Background:
Information technology has developed leading to significant changes in communication. The
development of the smartphones has created a significantly engaged making it easier to
communicate. Among the key companies that have been significantly engaged in the smartphone
market is Samsung, which has made significant steps in improving the communication aspect.
Smartphones and mobile networks have become mainstream, changed the life for the human being,
not only keep the phone connection, such as geographical location, lifestyle and other personal
files, resulting in the new Model of personal life and interpersonal interaction, and extension affect
the marketing, brand communication areas.
Objective
The focus of the study was to create a significant understanding on how Samsung has significantly
succeeded in the Android world.
Methodology
The research incorporated both primary and secondary data to provide a better
understanding on how Samsung has been significantly engaged in the Android world while other
major brands continue to face challenges regarding performance and sustainability.
Primary research: the primary research included in an online survey, which was conducted
on Facebook to provide a better understanding of the research objective.
Secondary research: the secondary was obtained through review of peer reviewed scholar...


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