- An Introduction Marketing Research. 2 We are planning to launch a low-priced entry level car We would target 2-wheeler owners, and hence, advertise.

- An Introduction

Marketing Research

2

We are planning to launch a low-priced entry level

car

We would target 2-wheeler owners, and hence,

advertise accordingly

In which newspapers, magazines and TV

programmes should we advertise?

“Where do we advertise?

Client Brief :

3

Our company sells the largest soap brand in India

Our R&D team claims to have developed a similar

product formulation (at 5% less production cost)

for this brand

Should we replace the current product with the

new one? IMPORTANT: Who should we go to for this research?

Client Brief : “Should I use the new product

formulation?”

4

Exactly similar Client Brief as the previous one…

But this time for a very small brand of soap in the

Economy segment

IMPORTANT: Who should we go to for this research?

“Should I use the new product

formulation?” (CONTD.)

5

We want to set up a new steel manufacturing

plant worth Rs 50 crores to market advanced

technology construction bars

Should we go ahead and invest?

Client Brief : “Is there a market for hi-

tech re-bars”?

6

The Systematic Search and Analysis of

information

To help in marketing decision making

Very simply put, Marketing Research

is…

7

Marketing Research Process

Client problemClient problem BriefBrief Agency ProposalAgency Proposal

Questionnaire Design

Questionnaire Design

Data Collection / Fieldwork

Data Collection / Fieldwork

Data ProcessingData Processing

Data Analysis & Reporting

Data Analysis & Reporting

SolutionSolution

8

Initial stages of the Marketing Research Process

Client problemClient problem BriefBrief

Problem Definition Stage

Management Decision Problem OR Business

Problem: Problem confronting the Decision Maker

(or “Top Mgmt”)

Marketing Research Problem: Problem that

entails determining what information is needed

Agency ProposalAgency Proposal

9

We are planning to launch low-priced entry level

cars

We would target 2-wheeler owners, and hence,

advertise accordingly

In which newspapers, magazines and TV

programmes should we advertise?

Revisiting the first Client Brief :

10

Management Problem and Research

Problem MANAGEMENT DECISION PROBLEM: How do I

maximize my reach to the target group (i.e. 2-wh

owners) with my planned advertising budget?

MARKETING RESEARCH PROBLEM: Among 2-wh

owners, which newspaper has the highest

readership and better reader profile? Similarly,

which magazine?... Which TV prog? How do the ad

rates compare for these? So, what’s the ROI?

11

Management Problem and Research

Problem Refer to case-let on soap packaging (Print-

outs to be given)

Discuss the Mgmt Decision Prob and Market

Research Prob

Types of Market Research

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Qualitative & Quantitative Market Research

Qualitative

In depth & flexible data from small sample

Softer feel

No numbers

Impressionistic

Quantitative

Structured data collection from large samples

Rigorous

Numerical

Deterministic

Aids Understanding Aids Assessment

Outputs: Quant and Qual, Ex Concept Test

On exposing Concept 1, there was a spontaneous response that it should come in “bright coloured” packaging. Also, on asking to associate with filmstars, “Katrina Kaif” and “Deepika” were mentioned

For Concept 2, “light colours” and names of filmstars like “Juhi Chawla” and “Kajol” came up

Overall Likeability Concept 1 Concept 2

% Did not like the offer 2 10

% Like the offer a little 13 20

% Like the offer quite a bit

31 27

% Like the offer very much

54 43

Concept 1 clearly liked more – higher % of positive response

15

Customised & Syndicated Market Research

Customised Initiated by the Client

To solve an identified problem

Research design customised

E.g. Product test, ad pre-test, post-launch track

Syndicated

Initiated by the Research Company

Standardised

Off the shelf

E.g. Retail Audit, TAM, IRS

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Examples of Syndicated research (Census, IRS,

NSSO) outputs to be shared

Reference from ‘Marketing Whitebook’ and ‘We are

like that only (By Rama Bijapurkar)’

Customised & Syndicated Market Research

“Market Research works!”

“Market Research works!” – Some recent examples

DOVE – More than doubled its revenues in last 3 -4 yrs, in

spite of soap category growing at slow rate

BINGO – One of the largest snacking brands in India now

GODREJ NO. 1 – Largest soap brand in 2 states

GOLD FLAKE – One of the Top 5 brands of the country,

consistently for the last 10 years

Group Assignment

Group Assessment – Post-launch Track (Background)

• A new soap brand - Verde, has been launched nationally

• While the company would get its internal sales figures (after a month or so) that is not enough to take proper marketing action

• Competition sales would come from sources like ACNielsen’s Retail audit, etc… but even that is not enough

• Thus an MR agency has been commissioned to do a brand health check in 3 key markets, 45 days after launch

Discuss… why??? Need to know brand awareness, trial, etc

Discuss… client brief, agency’s study design

…Q’re content (Mind measures and Behavioural measures)

Fieldwork, Data entry and cleaning have been done and now you get the basic tables.

Brand Performance: 45 days post launch

‘VERDE’ soap

Chennai

Delhi Mumbai

Total Awareness 24% 78% 40%

Trial 8.9% 11.1% 10.8%

Repeat Purchase 1.8% 2.2% 4.5%

MOUB (Regular Users) 0.4% 0.5% 2.2%

ASSUMPTION: 50% of advertising spends for ‘Verde’ have been in national channels. Rest of the 50% in regional channels have been split equally among the 4 zones

TASK: (To be submitted/mailed next day, by 4pm. Any 3 groups to present)

(i) Comment on difference in performance in the 3 markets and DRAW HYPOTHESES ON POSSIBLE REASONS FOR THE DIFFERENCES,

(ii) What marketing decisions/actions could possibly be taken for each market?

Group Assessment – Post-launch Track (Basic Data)

Key to the Assignment

• First compute the following ratios to understand how the conversions are happening

•Trial/Awareness Ratio

•Repeat/Trial Ratio

•MOUB/Repeat Ratio

Chennai

Possible reasons for its performance

• Low awareness, a clear function of advertising budget allocation. Viewership of regional channels very high in South (also more number of regional channels), but ad spends here were equal to that in other zones

• Low regional spends… were local celebrities used in ads? Hence low ad recall and awareness level

• Awareness to Trial conversion highest, indicating other aspects of marketing mix (distribution, promo offers, etc) are in place

Possible actions

• Re-allocate ad spends – higher ad spends in regional channels of South compared to other zones. Also, re-look at the media plan

• Regional / local flavour in South-based ads… so, relook at the creative too

• Maintain distribution and promo offer thrust in spite of moderate current sales. Offtake can increase substantially once awareness starts increasing

Delhi Possible reasons for its performance

• Very low awareness to trial conversion. Could be a result of poor distribution, lack of promo offers

• Is the soap being stocked in the correct pack-sizes based on the buying behaviour in this market?

• Is there a very strong competitor with loyal customer base? Is the competitor giving additional promo offers due to this new launch

• Consumers aware, but not finding enough strong ‘Reasons to buy’ in the proposition. Has the positioning been too down-market for Delhi?

Possible actions

• Distribution thrust

• Promos, bundled offers as suitable, ‘promoters’, special display in modern format

• Higher trade incentives for a short time so that channel members recommend… this could increase trial

• Can tweak the proposition for this market, in case the above do not show increase in trial

Mumbai

Possible reasons for its performance

• Very high trial to repeat and repeat to MOUB conversions – a clear effect of satisfactory product usage experience

• Awareness level quite low in spite of such high national TV channel spends and fair allocation in West. Could be a result of low thrust in non-TV communication spends

Possible actions

• Awareness building. Continue TV ad spends, also look at other media vehicles, especially outdoor

• Forced trial… free samples with other large non-soap FMCG brand. This could eventually increase MOUB because in this market, once they try there is a high chance of converting to regular usage