Marketing Research

MARKETING RESEARCHChapter 1: INTRODUCTION MARKETING RESEARCH I TO

(a) Basic or Pure Research: The research which is done for knowledge enhancement, the research which does not have immediate commercial potential, the research which is done for human welfare, animal welfare and plant kingdom welfare is the basic or pure research.

Government of India, through Census, does research on population count to identify total population of India, no. of male, female, no. of families, no. of voters, etc. One of the major findings of census is, some rural areas, proportion of female is 10% less as compared to male. In some metros and mini metros, female count is marginally less than male. This situation might create problems in future. Govt. responded quickly to this trend and have implemented ad-campaign having punch line a world without women.

Discovery TV channel highlights the basic research done by Australia and US Governments towards animal welfare and plant kingdom welfare. Some of the documentaries on animal rescue operations are quite remarkable. Sometimes social research may have commercial intention. Example: Jaago Re Campaign Objective- one billion voters by 2015. Intention is to get 4 million youth registered across 35 cities before general elections in 2009&one billion by next elections in 2015. The young coordinator of the campaign Mr Jasmine Shah,along with 11 people approach voters at crowded places&appeals to get registered as voter&also says to use helpline www.jaagore.com for any assistance.Tata Tea has sponsored some part of this campaign. (Taaza tea)This is a successful campaign because within 7 weeks of its launch,the website has managed to register 70,000younsters. (b) Applied Research: The research which has immediate commercial potential is called applied research. Applied research can

further be classified as problem oriented and problem solving research. Problem Oriented Research This type of research is done by Industry Apex Body for sorting out problems faced by all the companies. For example NASSCOM regularly conducts problem oriented research for the benefit of all software companies. Similarly CII does the research for all types of companies. At global level, WTO does problem oriented research for developing countries. In India, APEDA (Agriculture and Processed Food Export Development Authority) conducts regular research for the benefit of agro industry. Problem solving Research This type of research is done by an individual company for the problem faced by it. For example if Videocon International conducts research to study customer satisfaction level, it will be problem solving research. The findings of problem solving research are unique and only true for that company which does the research and cannot be generalized. Whereas findings of the problem oriented research could be generalized.

Market Research and Marketing Research are the applied research. II NATURE OF MARKETING RESEARCH

The nature of marketing research is very much linked with marketing as such. It deals with each and every decision which marketing also deals with. In nut and shell marketing research involves research related to nature and range of products, demand for the products, pricing, distribution and promotion, etc.; virtually every aspect of serving customer or clients right from idea generation till delivery, recovery of payment, installation and training.

III OBJECTIVES RESEARCH(a)

OF

MARKETING

To generate, refine, evaluate marketing plan.e.g bottled water.

CURRENT MARKETING SITUATION( Bislerry)

(i)

Market Size

: : :

Rs. 1700 Cr (2007) 17-20% P.A. Health conscious and 08-09

(ii) Growth Rate (iii) Target Market consumers

(iv) Product Situation : Current projected profits loss statement 0-7-8 (a) Industry Sales (b) Parles market share

1700 Cr 2000 Cr 25% 425 Cr

(c) Average Price per Unit MRP / Stokists / Retailer 1200 ml 10 7 8 500 ml 6 4.50 5 (d) Average cost per unit 1200 ml 5.60 500 ml 3.60 (e) Gross contribution (c-d) 1.4/0.90 % 20% (f) ml Sales volume in units : 60% 500 ml + 40% 1200 ml 56.6 Cr 500 ml 24.2 Cr 1200

(g) Total Gross Margin

20%

85 Cr

(h) Depreciation, Interest & Tax 50% of GM 42.5 Cr (i) (j) Net profit (g-h) 42.5 Cr (10%)

Advertising & Promotion cost 3% of sales 10.5 Cr

(k) Sales Force management & Distribution cost 6% 21 Cr (l) Marketing Research expenses 0.1% 3.15 Cr 7.85

(m) Net operating profit (i-j-k-l) Amount Cr % 1.84%

(b) Monitor marketing performance and improve impact of marketing programme. (Example of launching of Hum Tum movie) (c) To identify market potential [Case study of Reliance Petroleum for identifying market potential for petrol (8 million ton) diesel (40 million ton)

and launching of value added petrol pumps] d)Stress on innovation for market growth&profitability.The most innovative firms define innovation broadly. They believe that innovation is not just about developing new products and services but, more fundamentally, about discovering new ways to create value. At Marico, for example, innovation is referred to as uncommon sense. According to Marico, Uncommon sense is a mindset that seeks to create and unlock new value by challenging prevailing rules of the market. According to ICIC: Innovation is the ability to identify opportunity and seek new growth horizons continually using people, processes and delivery mechanisms as the platform. A broad definition of innovation helps companies to think beyond R & D and to move to the next level of innovation: creating new processes, new distribution channels, new business models and new ventures.THE MARICO WAYA FOUR-PRONGED STRATEGY FOR GROWTH

Strengthen existing brands like Parachute and Saffola by adding new brand extension, adding value by adopting a health positioning, and launching more variations. Example: Saffola atta mixes and Parachute gels Expand the international consumer business with key acquisitions in geographies like South

Africa and Egypt. Also eying the booming African markets and strengthening its position in Bangladesh and West Asia. A focus on health and wellness, with close to 65 Kaya Clinics. Kaya has got into the weightloss space with kaya Life Clincs Develop new products by prototyping them in small markets

MARICO Successful FMCG company Fast Mover The growth just keeps coming. Sales and Services2500

2000

1907 1557

1500

1000

888

1007

1144

500

0 2003-04 2004-05 2005-06 2006-07 2007-08

CAGR 21 per cent

Profit before tax250

205200

150

150 98 65 74

100

50

0 2003-04 2004-05 2005-06 2006-07 2007-08

CAGR 33 per cent

Net profit180 160 140 120 100 80 60 40 20 0 2003-04 2004-05 2005-06 2006-07 2007-08

169

113 87 59 70

CAGR 30 per cent

During the year, Kaya clocked revenues of RS. 100 crore. But more than its increasing contribution to group revenues, Kaya holds the promise of boosting the companys bottom lines, thanks to its distinct service model. Typically, kick-starting a Kaya a clinic takes Rs. 1-1.3 corre (including technology investments and interiors) in a metro city. The clinic breaks even in about nine months in ametro and takes a little bit longer in smaller cities. To boost its product revenue stream, Kaya began prototyping its shop-in-shop model through kiosks at malls. We are now present in about 36 locations like Shoppers Stop, Hypercity and Lifestyle. Hair Apparent Parachute is a leader, and Marico is sitting pretty in the branded coconut oil segment Estimated Keybrands Market Size (Rs. Crore) Value-added 200 Parachute coconut oil advansed Jasmine Presence in Hair Care space Market Closet share Competitor (%) 85 Clinic

Amla oil Non-sticky hair oil Post-wash conditioner Hair gel and creams Hair fall

350 250 50 80 NA

Shanty Badam Amla Hair and care Silk-n-Shine Parachute after shower Parachute Hair Therapy

10 18 30 30 NA

Dabur, bajaj Keo Karpin Bajaj Sunsilk, Livon Brylcreem NA

e)To research trends. Trends in vehicle Vehicles sales 07-08 cars U.V. C.M. Two.W. Three.W. Total15 11.79 10 4.07

1203531 344454 486817 7248600 364703 964810513.53

5

0 Car -5 -7.92 -9.71 Jeep Truck Auto rickshaw Motor Bike

-10

-15

Most Trusted Brands, Top 10 2008 1 2 3 4 5 6 7 8 9 10 Company Nokia Colgate Tata Salt Pepsodent Ponds Lux Britannia Dettol Lifebuoy vicks 2007 4 1 13 8 9 3 5 6 7 2 2006 44 1 5 15 4 2 8 3 13 7 2005 71 1 5 11 6 2 8 4 13 9 2004 1 6 5 3 4 7 2 11 13

IV IMPORTANCE RESEARCH

OF

MARKETING

Marketing Research helps the marketer in following decision areas: (a) Target Market To understand taste, preferences and choices of consumers, to understand market size, to measure market potential, to interpret consumer

(b)

(c)

(d)

(e)

behavior, to study influence of life style on target market behavior. Products / Services To identify customer satisfaction, to identify customer service levels, to study and to augment product features, attributes as well as to identify service gaps Price To study price affordability of target market, to study competitive pricing structure, etc. Distribution To identify prevailing channels of distribution, emerging channels, channels of distribution by competitors and modification to be done in channels structures as per market requirement. (P&G introduce master wholesaler between stockiest and retailer to augment service level) Promotion To design promotion mix, to identify promotion mix of competitors, to study emerging promo tools (road shows, pops and kiosks)

V

BENEFITS OF MARKETING RESEARCH(a)

Conducting Marketing Management to identify strength and weaknesses of the marketer as well as the competitors.Also to research market shares.Example of HUL.

HUL as Winner in the Market? Category: Fabric Wash Market Size: Rs. 8875 CroreCompany

HUL P&G Nirma

Quarter ended 2007 Mar. June Sept. Dec. 35.2 36.5 37 37.5 7.5 7.4 7.7 7.4 13.4 13.1 13.2 13.6

Category: Shampoo Market Size: Rs. 2141 Crore Company Quarter ended 2007 Mar. June Sept. Dec. HUL 46.9 47.5 47.7 47.8 P&G 25 24.8 24.3 23.7 CavinKare 12.6 12.4 12.4 12 Category: Personal Wash

Market Size: Rs. 6553 Crore Company HUL Santoor Nirma Quarter ended 2007 Mar. June Sept. Dec. 55.3 54 53.2 54.3 6.2 6.6 6.9 7.5 7 6.6 6.7 5.7

Category: Skin Care Market Size: Rs. 2758 Crore Company HUL Boroplus Vicco Turmeric Quarter ended 2007 Mar. June Sept. Dec. 54.8 55.1 55 54.5 5 5 5 5.1 3.1 3.1 3.1 3.1

Category: Packaged Tea Market Size: Rs. 4396 Crore Company HUL Tata Tea Wagh Bakri Quarter ended 2007 Mar. June Sept. Dec. 21.9 22.3 23.4 22.7 18.9 19 20.2 20.8 4 3.8 3.6 4.2

HUL as second-best segments

in

a

couple

of

Category: Toothpaste Market Size: Rs. 2733 Crore Company Colgate HUL Quarter ended 2007 Mar. June Sept. Dec. 48.2 48.5 48.2 48.8 30 30 30 29.5

Category: Ketchups Market Size: Rs. 271 Crore Company Maggi HUL Quarter ended 2007 Mar. June Sept. Dec. 32.2 30.9 30.9 30.3 26 25.5 26.9 28.1

(b)

(c)

(d)

(e)

Determining whether economics of scale and economics of scope (e.g. retailing, insurance and telecom can be clubbed by organized retailer like Shoppers stop, ICICI, etc.) Understanding needs wants and demands of target customers in India and abroad. To formulate sales and distributions strategies To avoid business recession by timely launching brand extension and or product variants (detail study of PLC or BCG matrix)

VI SCOPE OF MARKETING RESEARCH (a) Type of consumers that comprise present and potential markets. (b) Buying habits and pattern of consumption (c) Size and location of different markets, not only in India but overseas also. (d) The prospects for growth or contraction for the current markets being served.( dVD vsVCD, CDVs Flopy)

(e) New mantras of emerging segments. (f) The marketing and manufacturing capabilities of competitors. (g) Most suitable entry timing (h) The current and prospective competitive position w.r.t. price, quality, reputation, etc. (i) Chances of improvement of current channels (j) Optimum use of promo-tools (k) The macro environmental factors like changes in government regulations, effect of technological innovations, urbanization, etc. that will have any effect on the market for the product under consideration. For example FDI in Retail Trade. The Govt. rules are as follows. (l) Govt. allows FDI upto 51% with prior approval in retail trade of Single Brand products.This is aimed at attracting investment in production &marketing,improving the availabilityof such goods for consumers,encouraging increased sourcing of goods from India&enhancing competitiveness of Indian enterprises through access to

global designs,technologies&management practices. 2) FDI upto 51% in retail of SINGLE BRAND products only. ---- Products should be sold under same brand interbationally. --- Single brand product retailing would cover only products which are branded during manufacturing. 3) Cash&Carry- This is B2B format,where the retailer sells to shopping establishments&large institutional customers.Metro in Bangalore is cash-ncarry VII LIMITATIONS OF MARKETING RESEARCH / OBSTACLES IN ACCEPTANCE OF MARKETING RESEARCH (1) In corporate India total number of companies could be more than 10,000 whereas companies engage in conducting marketing research, in organize sector are around 10 to 15 and unorganized around 32 to 50; of which the major are leading

marketing research companies and their sales turnover is as follows: Marketing Research Company ORG-MARG MRAS MBA RCG STANDARD RESEARCH IMRB Services offered People meter, retail audit Test marketing Opinion polls Perceptual maps Customer satisfaction surveys Advertising testing research Total Sales turnover for the year 2005 (Rs. In Crores) 100 25 10 12 10 75 232

Corporate Indias turnover is few billion $ whereas sales turnover of all marketing research companies (organize and unorganized) does not exceed more than Rs. 500 crores. This indicates that marketing research is not very popular with corporate India.

The big shots in consumer non-durables i.e. HLL and ITC hardly spend around Rs. 25 crores and 20 crores respectively annually on marketing research, which is not even 1 per cent of their sales turnover. This fact confirms unpopularity of marketing research with corporate world. The reasons for unpopularity could be as follows: (2) Narrow conceptions: MR is perceived as data collection activity only i.e. a clerical job. This is because the marketer never comes in forward of respondents and explains to him the objectives of research or purpose of research. E.g. Times of India and Indian Express conduct research for estimating readership and viewership every six months. The boys recruited are under-graduates who do not know the purpose of the study. They judge jott down the answers on structured questionnaires and say that they are doing marketing research. Hence the respondents form perception that marketing research is clerical job. (3) Improper orientation of the investigators data collection activity is normally enthrusted to first year management

(4)

(5)

students without imparting any training to them. The respondents are just given quota i.e. they have to complete say 100 surveys in one weeks time and submit 100 questionnaires. Normally, the interviewer is not able to complete this work in one weeks time and to fulfill the quota on his own he fills up the questionnaire. This hampers the accuracy of the survey. Late results - well design and plan survey which is to be completed by conducting personal interviews might take 4 to 6 months time. In marketers opinion, the survey should not take more than one months time since he perceives it as clerical job. As such the report submitted by marketer may not be attended by the sponsors. Conditional findings MR companies normally want to play safe i.e. due to volatile Indian markets, they never recommend any marketing strategy. In place they normally recommend conditional strategies i.e. if this happen, this marketing strategy will work. Such conditional marketing plans are not

acceptable to the marketer because marketer can hardly control the conditions. (6) Cost affair Field research is always very costly because the expenses like traveling, conveyance, lodging, meals, communication, etc. to be incurred e.g. a survey done for nation wide market for consumer non-durable like toothpaste might require few crore rupees. However, marketers opinion is it should not take more than few thousand since he perceives MR as clerical job. (7) Biasness Research may have biased due to (a) Improper research techniques (b) Inadequate skill of investigator (c) Researcher inclined towards predetermined results. vIII Definitions of MR 1 MR is a tool for a study --------To measure needs, wants, demands. To evaluate consumer attitudes To interpret consumer behavior Of various target markets.

2 MR is the systematic gathering recording &analyzing of data about problems relating to the marketing of goods &services. 3 MR is the objective & formal process of systematically obtaining, analyzing &interpreting the marketing data for actionable decision making. IX MR &market research.

Chapter II. Sources & collection of Marketing dataSOURCES OF SECONDARY DATA Government Sources

Name of the Source 1) Directorate General of Supplies & Disposal (DGS&D) 2) Directorate General of Trade & Disposal 3) Reserve Bank of India (RBI) 4) Directorate General of Commercial Intelligence & Statistics 5) Centre for monitoring Indian Economy (CMIE) 6) Census 7) Geographic Survey of India 8) Horticulture Board of India

Information provided Installed manufacturing capacities & actual utilized capacities for all manufacturers Availability of foreign currencies. Import-Export statistics Economic Growth, GDP Population, no. of families, no.of voters Regionwise production of agri-produce Value-added fruits, vegetables & flowers and markets

Name of the Source 9) Directorate General of Foreign Trade (DGFT) 10) Exim Bank 11) Export Credit Guarantee Corporation of India (ECGC) 12) Agriculture & Processed Food Export Development Authority(APEDA) 13) Central Statistical Organisation (CSO) 14) National Sample Survey (NSS)

Information provided Import Export Regulations Creditworthiness of importers and countries. Insurance covers and financial guarantees available to exporters. High Tech Agri Farming, technology tie-ups, seed capital, inspection, etc. Industry Economics Per Capita consumption & monthly per capita income, literacy per state, employment across male & female etc.

Non-Government Sources

1) Org Marg 2) INSDOC Library) 3) Path Finder

TRP ratings, Retail Store Audit (private Any publication after 1970

Household disposable income & consumer behaviour. 4) University Public Various courses, fees, Relation Offices duration and eligibility. 5) Yellow Pages & Ask Classified information Me 6) Internet Sites Classified information

7) Indian Association of Retailers 8) J.D.Power Asia Pacific 9) Technopak } 10) A.T.Kearney }

No.of Retailers, their classification, types, etc. Customer satisfaction Index Survey Retailing in India

THE NATURE OF SECONDARY DATA Secondary data is available from publications, in-house databases, research agencies etc. It constitutes readymade information that can be used for research purpose with minimal analysis. However, the researcher should bear in mind that secondary data is published for purposes other than the current research. Collecting primary data involves field work and further analysis on the data collected to arrive at a conclusion. For instance, a marketer who wants to launch a particular product may be interested in collecting data regarding the buying habits of consumers in that particular region. The marketer can conduct field surveys to collect the relevant data, which, in turn, can be analyzed to arrive at a proper conclusion. But at the same time, he can refer to any published material that has already done an analysis. While the first method is tedious, time consuming, and expensive, the second

method, which is collecting secondary data, is fast and inexpensive. 2.2 ADVANTAGES OF SECONDARY DATA One of the main advantages of secondary data is that it is quite inexpensive. A small start-up company study the market to launch a product may not be able to afford to do primary research. By getting hold of good reports and articles, such small organizations will be able to do the study cost effectively. Secondary data helps researchers save time. While primary research takes a considerable amount of time in the form of collecting and analyzing the data, secondary data offers readymade solutions. If the demographics of a particular region have to be studied, the researcher has to collect the statistics of the population. It is impossible for any organization to conduct such a census study. Here too, secondary data published by a government organization will be of considerable

use. Moreover, data collected and published by the government will be less biased. 2.3 DISADVANTAGES OF SECONDARY DATA The major disadvantages of secondary data are Relevance Accuracy Sufficiency Availability data collection in field

Methods of researchElement of differentiation No of samples

Personal interview method Not very high due time constraint

Time

Telephone interview method Large no Much mo samples can sample can b be contacted contacted a less tim required Is used Used when Used when ve when considerable short adequate time is available time is available available

Mail method

Cost

Highest

Lowest

Accuracy

Highest due to personal interaction and data recording with right understandi ng

Use

Not very high due to a. Response rate not more than 20 to 25% b. Wrong interpretation of Qus. can not be sorted out. Not much For useful when geographically large scattered geographic samples this area is to be is best suited cover due to cost constraint

Moderately high a compared MM Fairly high b depends o skill interviewer sorting o misinterpretat n of Qus.

For outstatio samples th cost could b prohibitive hence usef local survey only.

Infrastructure

Huge Almost infrastructure negligible in form of project leader, research officer and investigators

In terms o skilled telephone operator an data base

required

Type samples

of Useful for Suitable for ignorant and samples illiterate who can samples read and write Questionnaire Samples lengthy loose interest questionnai with lengthy re is no questionnaire prob. bcoz Sample feel it at his convenient time Interviewer

Suitable samples ca properly communicat

Legthy questionnar wont do bco sample is no directly seen

Skilled Skilled o not Skilled Interviewer skilled Interviewer can improve Interviewer r can improve accuracy does not accuracy affect accuracy

Suitable for Suitable for Suitable only spontaneous spontaneous for Ans since as well as Spontaneous samples do well thought Ans not like to tax Ans their memories Drawbacks/Limitations If Questionnaire It is investigators might not be impossible to are not trend, filled up by judge person he himself intended contacted is might fill up person desired Questionnaire person as such the 1st name of sample must be known Internet Interviewing Web interviewing Applications Exam surveys Email survey All type of marketing

Type of Qus

CAT Admissions

Advantages of Internet interviewing

Fast set up, Execution and completion Visual stimuli can be evaluated ( in case of web cap) Stimuli presentation can be controlled allowing for pre and post questions unlike traditional mail. Question presentation is consistent and eliminates interviewer's bias Questionnaire skip pattern can be controlled Less instructive process, allowing respondents to ans as per their convenience Accurate responses possible since it is self administered. Eliminates cost of an interviewer Permits real time data

Much cheaper than traditional research procss. Sampling Web interviewing can be generated provided sample are accessible. Hence samples to b chosen from a.Visitors to a website b.E-commerce customers c. Users of certain compuer hardware or software d.Employees of a company that provides web access for 24 hours e.Regular web surfers at net cafes f. Wap users Survey design characteristics Screen look and feel Question layout Word dynamics for onscreen questionnaires Placement of graphics Randomization of ans or stimuli Richer open end responses

Applications Study of competitor's product where PI/MM/TI may not be possible due to cost, time Ect. Marketer can heir a .com company to study competitor's actions Limitations No. of PC owner/internet users are limited This type of survey can not be for masses but for classes Sampling is complex due to problems in identifying in sample frame. Illustration A food product company wants to launch fresh orange juice as new product concept in soft drink markets. Suggest what data should it collect and how. The fresh orange juice is to be launched as new product hence the feasibility must be studied as follows: (I) Information to be collected from Secondary Sources

(a) Orange availability statistics: India i) area covered 600 acres ii) volume grown 2 in million iii) Growth rate 3-4% percentage iv) Yield tons per 3 hectare Source: HBI/APEDA Brazil 1300 18 6-8% 14 WestIndies 100 0.5 NIL 0.75 Tanzania 400 1.2 1-2% 1.5

(b) Orange Producing states in India States i) Karnataka ii) Maharashtra Main districts Curg, Hasan Nagpur, Vardha, Amravati iii) Orissa Puri Source: Geographic Survey of India(c)

Economic of Production i) How many trees can be planted at one acre. ii) How many fruits are possible on one tree per season.

(II)

iii) How much time is required by a tree to start delivering fruits. iv) What is average life of a tree. v) The cost of seeds ad maintaining the farm. vi) How many fruits will make one litre of juice. vii) The popular pack sizes of serving juices viii) The market price of popular pack size Information to be collected from primary sources, either by personal interview with questionnaire or by telephone interview. (a) Information required for launching i) What do you take as breakfast drink. Milk/Tea/Fruit juice ii) Do you like taste of orange juice. Yes/No iii) Would you like to offer orange juice to your guests Yes/No iv) Would you like to offer orange juice to your children. Yes/No v) What is your concept of orange juice. Nutritive/low Calorie

juice / Status Symbol / Feminine drink. vi) Who in your opinion would be benefited most by having fresh orange juice : Children / teen agrees / youngers / folders vii) What price would you like to pay for say pack size of 250 ml of orange juice Rs. 10/-, Rs. 13/-, Rs. 15/(b) Information required for marketing i) Per capital consumption of oranges and orange juice. ii) Prevailing brands, market shares with high-light on investment done, years of existence. iii) Type of distribution system in force iv) Type of sales-promotional schemes launched. v) Shelf life of the juice and packaging material being used. From above information total costs and total revenues can be calculated and feasibility can be accessed.

Illustration : Marketing, Data Collection Placement committee of a Management Institute intends to provide 100% jobs of their management students. Which information to be collected and how? (a) List the management institutes in the region and classify them age wise. (b) Get the placement broacher of atleast 10 institutes, so as to get idea on which corporate visited last year for placement. (I) Top 15 Recruiters of choice 1) McKinsey & Co. 2) HLL 3) BCG 4) ITC 5) Citi Bank 6) HSBC 7) P&G 8) Infosys 9) HDFC Bank 10) Lehman Brothers 11) IBM 12) Olam International 13) Amex

14) Microsoft 15) ICICI Bank (II)

(Source:ET/BI/BL/BT)

Ranking as per no. of students recruited by Industry sector 1) Management Consultant 7.87% 2) FMCG 6.77% 3) Software-IT consultancy 5.66% 4) Foreign Banks 5.19% 5) Financial Institutions 4.25% 6) Telecom 2.67% 7) Automobile 2.51% 8) Consumer Durables 2.36% 9) Retailing 2.35% 10) Insurance 2.35% 11) Pharmaceutical 2.35%

12) Advertising / MR 2.35% 13) Entertainment / Media 2.30% 14) Diversified companies 51.02%(III)

Management Institute should interact with Industry sector to understand traits expected by them through PI/TI/MM/Internet Interviewing.

Make available this information to Internal and External faculties as well as to students. Conduct training programme to develop respective skills. (IV) Communicate respective industries on available skills (V) Wait for call or generate the requirement through aggressive marketing. MMM (Semester-II) Examiantion 2006 Marketing Research

Time : 3 Hours 70 Instructions:

Max. Marks :

(1) Attempt any five questions. (2) All questions carry equal marks. Q.1 Discuss some of the major uses of Marketing Research in todays Corporate Environment of India. [14] Q.2 (a) What are the major components of a Marketing Research Report? [07] (b) Discuss the distinct coverage of each major component of a written report. [07] Q.3 Write short notes on ANY THREE: [14] (a) Consumer Panels (b) Retail Store Audit (c) National Readership Survey (d) Data Collection Methods (e) Semantic Differential Scale (f) Rating and Ranking Scales

Q.4 (a) What general guidelines should one follow in designing a questionnaire? [07] (b) List the merits and demerits of multiple choice questions. Under what conditions multiple choice questions be inappropriate. [07] Q,5 (a) Outline a suitable Likert Scale to examine the corporate image of a bank measured by its location, number of branches, timings, service quality, behaviour of staff, etc. [07] (b) For the same problem in Q.5 (a) construct a suitable semantic differential scale. [07] Q.6 (a) Why is sampling used in Marketing Research? [07] (b) What factors would you consider in determining the sample size for a Marketing Research study? [07]

Q.7 State and explain various Limitations of Market Research. [14] PU, MMM, MR, MAY 2006 Q.5 (a) Outline a suitable Likert Scale to examine the corporate image of a bank measured by its location, number of branches, timings, service quality, behaviour of staff, etc. Assumptions: (i) The bank considered, say, HDFC Bank (ii) Those corporates considered, how have current accounts with HDFC Bank in Pune like Tata Motors, Thermax and Alpha Laval Ltd.

Solution: Likert Scale is about intensity of Agreement on a scale of +2 to -2 (5 point scale)Attributes +2 strongly agree +1 agree 0 Neither Agree Nor -1 Disagree -2 Strongly disagree

TML (1) (2) (3) (4) (5) Location No. of branches Work timings Service-Quality Behaviour Staff of

Th

disagree ALL

Scores TML = Tata Motors Ltd. = +2+2+2+2+2 = 10 Th = Thermax Ltd. = +1-1+0+1+1 = +2 ALL = Alpha Laval Ltd. = 0 -2+1+2+2 = +3

Q.5 B) Construct Semantic differential scale for Q. 5 A bank.Attributes (1) Location (2) No. of branches (3) Work timings (4) Service-Quality (5) Behaviour of Staff +3 TML +2 Wipro +1 IIMP 0 -1 -2 -3

Scores TML = +3+3+3+3+3 = 15 Wipro = +2+3+2+3+2 = 12 IIMP = +1+2+1+2+2 = 8

CH 3 SPECIALISED TECHNIQUES OF MARKETING RESEARCH (I) NATIONAL (NRS) READERSHIP SURVEY

Objective of NRS is to provide such information which is simultaneously acceptable to media owners (DD, ET, etc.) Advertises (HLL, P&G, Godrej, etc.) and advertising agencies (JWT, O&M, etc.). It normally provides following information: (1) The readership of 535 publications (230 dailies and 305 magazines) as follows: (A) Readership of Business Magazines S. Name No. 1 Business world 2 Business Today 3 Business India 4 B&E (B)

Readership Readership Readershi (2006) (2005) growth (% 680,000 523,077 (+)3 676,000 450,000 253,000 NA 757,000 371,901 --

\(-)1

(-) 2

Readership of National Dailies Title Dainik Jagran Dainik Bhaskar Eenadu Readership 5,36,00,000 3,58,00,ooo 13,800,000

S. No. 1 2 3

4 5 6 7 8 9 10

Lokmat AmarUjala Hindustan(hindi+eng ) Daily Thanthi Dinakaran Rajastan Patrika Malayala Manorama

2,29,oo,ooo 10,800,000 2,96,oo,ooo 10,400,000 9,639,000 9,391,000 8,409,000

(2) Cinema and TV viewership and radio listener sip as follows: (A) In India everyday, one crore people watch cinema. In South India, people watch regional movies whereas in North India, people watch Hindi movies. (B) TV viewer ship: India has 125 million TV homes, of which 68 million are C&S homes. From this, TV viewer ship can be calculated by multiplying number of people (5 per home) to TV homes. (C) Radio Listernship : Indian radio reach 95 percent population of India listens Vividh Bharati. Only 3 percent population listen private radio i.e. FM (say Radio Mirchi).

India has 190 radio centres with 324 channels. Prime time ad tariff for Vividh Bharati is Rs. 2000/- for 10 second ad and Rs. 1000/- for nonprime time. Similar figures for FM are Rs. 1600/- / 800/-. (3) Reach of Indian Post Indian post has 1.56 lakhs post offices in 470 cities, 6,34,321 villages in 29 states. Total number of postman 3,59,685, area covered by each post office 21.13 sq.km., population served per post 6602. Everyday Indian post receives and distributes 0.35 crores mails, the configuration of which is as follows: Service Post Card Printed post card Letter cards Registration Money Order Reg. Newspaper (single) Reg. Newspaper

Subsidy Traffic Total per unit (in million) deficit (in Rs.) (in Rs. Cr.) 6.1 255.1 156.6 0.7 43.6 2.9 4.1 327.5 135.4 16.0 223.3 357.9 28.5 116.5 331.5 7.9 59.3 46.6 12.2 3.6

4.4

(bundle) Printed Books Parcel Others Total

9.2 12.1 NA

2.5 5.3 NA

2.3 6.5 160.0 1203.0

(4) The degree of duplication among various publications and between the different media. For e.g. how many readers read same ad in two print media (Business Magazine and Economic Times) as well how many readers see the ad say in Economic Times and TV. (5) Socio-economic characteristics of readers of various publications like dailies and magazines with respect to income level, educational background, profession, etc. Consumer profile for Dainik Jagaran is as follows: (a) 4.3 million graduates and above (b) 48% belong to SECA households (c) 49% belong to 15,000 + income group

(d) (e) (f) (g) (h)

45% of readers have refrigerators 38% of readers have TV sets 48% have washing machine and ACs 46% have four wheelers 38% have motor cycles

Consumer profile for The Hindu is as follows: (a) (b) (c) (d) (e) Two lakhs of readers belong to SEC A1 19 lakhs belong to age 20+ 12 lakhs belong to graduate level education More than 8 lakhs belong to income Rs. 5000+ Five lakhs have profession like Executive, Business class, etc.

(II)

Retail Stores Audit

It is a method of quantitative feedback from the market on consumer buying habits. It is the exclusive service provided by ORG MARG to Indian FMCG industry. The basic

objective of retail stores audit is to observe or count the movements of the products off the retailers shelves to the consumers. The procedure adopted is as follows: (a) A list of retail outlets in India for a particular city is prepared by using data from Indian retailers Association. Based on the sales turnover, the retail outlets are classified as small, medium and large. The representative of ORG-MARG calls on all listed retailers to us their concurrence for providing information. Only those are visited who express willingness to cooperate. The teams are sent to different areas already planned in advance and with the guidelines on collection of data The team visit retail outlets twice in a month, once in first week of month (assuming retailer fills up inventory in the beginning of month) and during last week of month. The stop position is

(b)

(c)

(d)

(e) (f)

actually counted for all the commodities, brands stock by retailer. The month-end inventory is subtracted from monthbeginning inventory. The difference is the movement of goods of the retailer shelves. For recording the data, special booklets are prepared in which the team records the entries. The data from all the retail outlets is compiled and then systematically analyzed. The analysis provides following useful information: (i) Total sales for product type (ii) Total sales for different brands and thereby market share (iii) Total sales for different pack sizes The above information is very useful for marketing planning, packaging decisions and promotion decisions.

The main disadvantage of this method is Brand Loyalty can not be studied, for which next tool Consumer Panels is followed. (III) Consumer Panels

Retail Store Audit is quantitative tool whereas Consumer Panels is qualitative tool which focuses on Brand Loyalty. Such panels can be set up by manufacturing companies like HLL or Research Agencies like ORG-MARG or by Advertising Agencies like JWT. Sometimes Government also might formulate consumer panels for studying impact of budget on consumers, etc. The size of total number of panels depends on total population to be covered. For example, for consumer goods, to collect data from population of 27 crores consumers (USA) around 5,000 panels are required. From this formula, if we calculate for Indian markets, total 18,000 panels will be required for collecting the data.

The procedure of data collection is as follows: (a) The panel members are allotted a fix area like one society having fifty apartments. So, in specified area, the societies are selected which have minimum fifty households. A panel consists of two people, essentially matured husband and wife. (b) Panel members are asked to maintain purchase records in the registers provided by sponsor. The details to be recorded are as follows: Brand purchased, Number of units bought, Price paid, Pack size, Place of purchase and reason for purchase. (c) Panels are advised to visit households on week-end days. (d) The registers from panel members are collected at the end of the month and then the data is analyzed for complete city. After tabulating the information, it provides following valuable information: (i) Number of families purchasing not only sponsors brand but competitors brands also

(ii) Trends in retail sales: composition of India`s total Retail market is as follows:, Food&grocery 75%,Clothing&textile 7%, Consumer durables 4%,Jewelery&watches 4%Home dcor&furnishing 3%,Beautycare 2%,Misc 5% (iii) Purchases by new customers V/s Purchases by old customers (iv) Evidence of Brand Loyalty (Why same product is purchased repeatedly or why product is purchased from a specific retailer or broker) (v) Market share The major limitation of consumer panels study is its costliness. Panel members expect handsome honorarium which is as follows Rs. 50/- per entry per family per week. Hence for a month the total cost for nation wide survey works out to be 18,000 x Rs. 50/- x 4 x 50 = 1,80,00,0000 (IV) TEST MARKETING

Basic objective of test marketing is to safeguard the investment risk before initiating commercial production. Test marketing could be done at one city at one time or many cities at same time. The criteria for selecting the test area i.e. the city is the profile of resident of city must match with target consumers profile. The test marketing can be done in either of the following way: (i) Before the product formulation but after branding, packaging, positioning, etc. has been finalized, to test expectations of consumers about product features. (examples HLLs Closeup, HLLs Liril, M&Ms Bijali, P&Gs Pantene, After the product is finalized but before introducing to markets, to test reactions of marketing middlemen, customers on brand name, style, looks, etc. (example Tata Motors Indica, Bajaj Eliminator and Movies)

(ii)

Whether marketer follow (a) type of test marketing or (b) type, he has to work out the market acceptance by using anyone of following methods are used to project estimate of national sales based on test area sales of test marketing:

(a)

Buying Income Method

Total Income of Country Estimate of national sales = --------------------------------- x Test Area Sales Test Area income

(b)

Sales Ratio Methods

National sales of other product Estimate of national sales = ------------------------------------------------- x Test Area * Test area sales of this other product Sales of Test product * This other product means similar products. For example, if test marketing of say semi-automatic washing machine is done then all sized semiautomatic washing machine are considered.

(c)

Share of market method

Test area sales of new brand Estimate of national sales = ------------------------------------- x National sales of ** Test Area sales of this whole category Whole product category

** Whole product category means entire product range. For example, if test marketing of washing machine is being done then entire home appliances are considered.

(V)

RESEARCH DECISIONS

IN

ADVERTISING

At the end of the year, top management always ask the brand manager, a simple question like have you wasted money or have you invested money. This question could be replied by undertaking research in advertising as follows: The objectives for such research could be (a) To identify target markets, their buying behavior, their perception on price and value of a product or service (b) Ad copy testing for its effectiveness (c) Media research and selection .Effective use of publicity to arrange company`s name always in news.The companies in more News

Indias Biggest News-Makers company Automotive Rank 07 1) Tata Motors

11) 12) 13) 14) 15) 16) 17) 18) 19) 20) 1) 2) 3) 4) 5) 6) 7) 1) 2) 3) 4) 5) 6) 7) 8)

2) Mahindra & mahindra 3) Maruti Suzuki India 4) General Motors India 5) Hyundai Motor India 6) Ford India 7) DaimlerChrysler 8) Honda Siel 9) Toyota 10) BMW Tata Motors Mahindra & mahindra Maruti Suzuki India General Motors India Hyundai Motor India Ford India DaimlerChrysler Honda Siel Toyota BMW Baja Auto Hero Honda Motors TVS Motor Company Yamaha Motors Escorts Kinetic Motor Honda Motorcycle & Scooter Hero Cycles Kingfisher Airlines Jet Airways Air India Air Deccan (Deccan) Indian spiceJet air Sahara (jtLite) goAir

9) 10) 1) 2) 3)

British Airways Singapore Airlines ICICI Bank State Bank of India Standard Chartered bank 4) HDFC Bank 5) HSBC 6) ABN AMRO 7) YES bank 8) Union Bank of India 9) Punjab National bank 10) Axis Bank 1) ACC 2) Ambuja Cement 3) Holcim 4) India Cement 5) Ultra Tech Cement 6) Madras Cement 7) JK Cement 8) Dalmia Cement 9) Grasim 10) Prsim Cement 1) Ernst & Young 2) Pricewaterhouse Coopers 3) McKinsey 4) KPMG 5) Accenture 6) Capgemini 7) ACNielsen 8) Boston Consulting Group 9) Hewitt Associates 10) Deloitte

(d) (e)

To study image of company as well of the product To study effectiveness of ad agency

The procedure adopted is as follows: (A) Recognition test (i) The respondents or samples are shown different advertisements of same product which appear in print or audio visual media and they are asked to recognize which one they have seen earlier, in which media, did they like it, if any. (ii) After masking brand name as well as sponsors name, samples are asked to recall name of sponsors, name of brand and sometimes, name of ad agency too. (B) Recall test (i) Respondents or samples are asked to recall all advertisements for a particular product. For example, which advertisements have you seen recently for skin moisturizers and in which media.

This is called as un-aided recall test. (ii) Samples are asked to recall a particular advertisement for a specific brand. For example Do you remember having seen Shahrukhan with Lux soap, if yes, in which media. This is called as aided recall test. (VI) MARKETING AUDIT

Definition: A systematic, comprehensive, independent and periodic examination of companies business units marketing problem areas and opportunities and to recommend an action plan to improve marketing effectiveness. Marketing Audit(1) Marketing Environment Audit (3) Marketing Organization Audit (2) Marketing Strategy Audit (4) Marketing System Audit

The frequency of conducting the exercise of marketing audit depends on type of products. For example, in case of consumer non durables the exercise might have to be done twice in a year whereas for home appliances once in a year could be OK.

(VII) DATABSE MARKETING Definition: Marketing Database system is an organize collection of comprehensive data about individual customers, prospects or even suspects (suspects can be converted into customers), i.e. current, accessible and actionable for marketing purpose such as lead generation and sales of a product or service or maintenance of customer relationships. Effective database marketing might start with employees itself (case study of Alpha Laval and Mrs. Poonawala to be discussed). For consumer durables, database marketing could be done as follows: All the dealers could be enlightened to ensure that the customers who walk in the shops to be converted into buyers. For this purpose, whosoever just enquires his name, address, contact nos. to be taken down and to be followed at regular interval till he is converted as buyer?

(VIII) FOCUS GROUP INTERVIEW TECHNIQUE This is also known as indirect interviews. A group of eight to ten samples jointly participate in an unstructured interview conducted by a moderator. The samples selected have similar background or use experience related to the problem being research. The moderator in informal way goes on asking unstructured questionnaire and recording the data in two-in-one tape recorder. This information later on analyzed for decision making. Advantage: The data can be collected in shortest possible time, say, a day or two. Disadvantage: Since sample size is very small, accuracy could be doubtful. Moreover, in one focus group if a dominant personality is one of the sample then other samples gets carried away with his views even though they want to say something different. Case study of Sweden, car maker to be discussed. Assignment for students:

CONSTRUCT A FOCUS GROUP STUDY TO ANALYSE THE ISSUE DO WE REALLY NEED INTERNET?.

CHAPTER 4 SAMPLING QUESTIONNAIRE AND SCALING TECHNIQUES Basic Terms in Sampling i. Sample Population: It is pre-defined set of potential respondents (elements) in a specific geographic area where research is intended. For example: All mothers in Pune city who buy branded baby products. All teenagers in Mumbai who love watching MTV ii. Sample Frame: It is a sub-set of the defined target population, from which researcher can select a sample for collection of data. Sample frame is usually a partial list of population. For Example: Telephone directory of Pune List of income tax payers in Pune iii. Sample: It is the test unit, which provide information or data to the researcher. Alternatively, samples are the respondents who represent the characteristics of the target population and drawn from sample frame. Sample Size Calculation 2 ZS n = ------e

where n = sample size, Z = standard normal distribution for certain confidence level, e.g. Z95% = 1.96 & Z90% = 1.645, Z99 = 2.58 S = Population Standard Deviation = Maximum value minimum value -------------------------------------------6

e = Tolerable error in estimating the variable Illustration: Whirlpool intends to research customer satisfaction level for washing machine. Customer satisfaction level is to be measured on a scale 1 to 10 where 1 means not at all satisfactory and 10 means full satisfaction. Value of Z is 1.96. What should be sample size if tolerable error is 0.5? Solution: First compute S i.e. Population standard deviation S = maximum value minimum value --------------------------------------------

6 = 10 1 -------- = 6 9 --- = 6 1.5

Substituting value in the formula n= 1.96 x 1.5 ------------0.52

=

35

Whirlpool should interview 35 samples for the intended research. -------------------------------------------------Sample Unit a) Household you & me i.e. end users (b) Industrial manufacturers, wholesalers, retailers, etc.Consideration Cost Accuracy Time Acceptance of results Generalisability of Design Type Probability Non-Probability More Costly Less Costly More Accurate More Time Universal acceptance Good Less Accurate Less Time Reasonable acceptance Poor

results 5.8 SAMPLING TECHNIQUES Probability Sampling 1) Each sampl4e unit in sample frame has equal or know chance of being included as sample 2) Samples are selected at random from sample frame. 3) Whenever large sample size is involved, this method is used. 4) When highly accurate decisions of known errors are intended regardless of cost, this method is useful. 5) Normally used for consumer goods survey. Non-probability Sampling 1) The chance of each sample unit from sample frame being included as sample cannot be estimated. 2) Samples are selected w.r.t. prior Experience or judgement of the researcher 3) For accessing small sample size this method is used. 4) Whenever time and cost constraints are inevitable (like exploratory Research), this method is used. 5) Normally used for industrial goods survey.

5.9 ILLUSTRATION Emami wants to launch Madhuri and Ishwarya range beauty ayurvedic creams, say in Pune. How should it do sample design. Solution: Sample Population: All women in Pune using Skin creams as beauty-aid. Sample Frame: All women of PUNE using

Beauty ayurvedic creams between age group 10-50 Sampling Method: Stratified. Sampling Plan Sample frame is divided into 4 groups as follows: Group 1 School-going girls between 1016 Group 2 College going girls between 17-23 Group 3 Working ladies between 24 35 Group 4 Housewives and working ladies between 36-50. Samples can be drawn from schools, colleges, offices, societies, etc. Justification : Beauty ayurvedic creams are costly and hence stratified sampling will ensure the income i.e. affordability. It is seen that at higher secondary school level, the girls are more cautious about looks. Hence, the age limit begins with 10. At the age 50, the ladies might value natural beauty. Four groups are formed to understand in depth the consumer profile and its preferences.

Sample size: 1%of frame&equally distributed over each group. (Sample frame for Pune contains 8 lacs ladies) Sampling Methods For probability sampling technique (i) (ii) (iii) (iv) (v) Random Sampling Systematic Sampling Stratified Sampling Multistage Sampling Area Sampling

For non-probability technique (i) Purposive Sampling (ii) Quota Sampling Questionnaire Design and Drafting Following elements in balance manner make good questionnaire (i) The questions must be relevant to subject matter and a set of questions must be able to cover the entire topic of the research (illustration of Chaitanya Health Clubs questionnaire)

(ii) The question should not indicate specific answers. (example of Amuls Masti curd and HLLs study on Surf Wash Boosters) (iii) Lengthy and difficult questions would lose customer attention and hence short and easy questions to be posed. (iv) Each and every question should create interest in the minds of samples so that samples also feel importance of question being asked and hence likely to give accurate answers seriously. (v) Double-baralled Questions to be avoided. Inexperienced questionnaire designers have a tendency to combine two questions into a single question, such as: Are you happy with the price and quality of brand Y? Yes No This is not a good question to ask, because the answer will be ambiguous, whether it is yes or no. It would not be clear whether the respondent has said yes for price alone, quality alone, or for both. The same problem exists for a no answer. It is better to rephrase the question and provide for different answer categories for

each attribute or ask two separate questions, one for price and one about quality. Then the interpretation of answer becomes far easier. Appropriate LayoutInformation Needed (Secondary or Primary data) Method of data collection, PI, TI or Observation Sampling technique and methods

Questionnaire Layout Design Decide on content of each question Decide on type of questions Decide on wording or questions Decide sequence of questions Decide pre-testing of questionnaire

Final testing of revised questionnaire

Questionnaire Dos and Donts Ensure questions are free of bias Make questions simple Make questions specific Avoid sophisticated words Avoid ambiguous words Avoid negatives

Avoid hypotheticals Avoid words that could be misheard Use mutually exclusive categories Allow for other in fixed response questions Types of Questions (1) Open-ended question What do you think of the test of brand X cola?OR what is your opinion on ------- ? (2) Dichotomous questions (a) Are you user of X toilet soap? Yes / No. OR Do u have mobile phone ? Y /N (3) Multiple Choice questions Which of the following factors made you by this brand of car: (a) Reasonable price (b) Great looks (appearance) (c) Fuel economy (d) Easy availability of service (e) Any other, please specify. (4) Ratings or Rankings Rating questions (a) Please rate the following detergent on

A scale of 1- 7 in their ability to clean clothes Brand A1 2 3 4 5 6 7 Brand B 1 2 3 4 5 6 7 Brand X 1 2 3 4 5 6 7 OR Indian Airlines food service is _____. Excellent Very good Good Fair Poor (b) Please rank for following detergents on their ability to clean the clothes Brand A1 2 3 4 5 6 7 Brand B 1 2 3 4 5 6 7 Brand X 1 2 3 4 5 6 7 (1 means best, 2 means better, 3 Means good, -------, 7 means worse) (5) Indirect questions (a) Most of the people in India smoke Non-Filter Cigarettes because ---------------(b) Jo Bibi Se kare pyar wo -------- se kaise kare inkar?

(6)Likert scale Do u agree that we offer the best services? a) Strongly agree b) agree c) neither agree nor dis agree d) dis agree e) strongly dis agree OR Indicate your level of agreement with the following statement: Small airlines generally give better service than large ones. Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree (7) Semantic scale How do u think our service is? a) excellent ------ worst b) better ----- very poor c) good ----- poor d) average OR Indian Airlines is Large ....Small Experienced ..Inexperienced Modern ...Old-fashioned

(8)Importance scale In flight, food service is _____ to me. Extremely important Very important Somewhat important Not very important Not at all important (9)Intention to Buy Scale How likely are you to purchase tickets on Go-Airlines if in-flight Internet access were available? Definitely buy Probably buy Not sure Probably not buy Definitely not buy 11) Probability Scale Do you intend to buy an automobile (say, car) within the next 6 months? 0.00 No 0.20 Slight possibilities 0.40 Fair possibilities 0.60 Good possibilities

0.80 High possibilities 1.00 Certain

Illustration: Construct a questionnaire for understanding buyer behavior in Selection of television set for household segment Objectives: (i) What features buyers are looking for in a TV set (ii) How important the price to the buyer (iii) What are the methods of payment? (iv) The selection process of the buyer Questionnaire: (1) a. Do you own a television? Yes / No b. If yes, which brand / company name c. If no, go to question 7. (2) While buying a TV what are the features you look for?

(3) Given below some of the features of the TV. How important is each one to you, please tick mark.Features (i) Looks (ii) Portability (iii) Cabinet - Moulded - Wooden (iv) Size of the screen (v) No. of channels (vi) No. of speakers (vii) Auto control monitor (viii) Manufactures reputation (ix) Video adaptability (x) Integral DVD (xi) Foreign collaboration (xii) Guarantee offered (xiii) Servicing arrangement (xiv) Price (xv) Child lock (xvi) Games

Extremel Important Some Not very Not y what important important important important at all

(4) a. If a price of TV is classified as high, medium And low then where your TV model belongs to? c. How do you judge price of a TV with respect to the features of a TV? d. Which payment option do you prefer? Cash / Installment (5) At the time making brand choice decision, from whom among other following sources did you take the advice? Family members Friends / neighbors Dealers Advertisement Any other source, please specify (6) A set of statements are given below. Please indicate your opinion, to be recorded a scale ranging from strongly agree to strongly disagreeStatements (i) Possessing TV set is a status symbol (ii) Observing TV is passing time (iii) DDs TV programmes are dull whereas C & Ss Strongly Agree Agree Cant say

Dis-agree Stro disa

programmes are attractive (iv) TV affects children education (v) Indian TV programmes are educative (vi) TV is best source of entertainment (vii) TV is low cost entertainment (viii) Governments decision on expanding TV network through DTH and dish TV is appreciable (ix) TV is best gift item (x) people are confined to homes due to TV viewing

(7) Classified data (a) Age (b) Education (c) Occupation (d) Annual income of the family

SCALING TECHNIQUES7.7 ILLUSTRATIONS

(1) Construct following scales of attitude measurement (i) Nominal (ii) Ordinal (iii) Interval (iv) Ratio (v) Thurstone

(i) Nominal Scale: Symbols or numbers are assigned to brand names, geographic territory, sex, user status, etc. Illustration: (a) Nominal scale to identify potential of cellular phone (WLL) w.r.t. territoryFollowing data is provided on WLL Mobile Telephone Users city wise City 1. Pune 2. Mumbai 3. Nasik 4. Delhi 5. Lucknow 6. Calcutta Mobile Telephone Users 80000 300000 50000 250000 60000 200000 Symbol W W W N N E City 7. Puri 8. Hyderabad 9. Bangalore 10. Chennai 11. Cochin 12. Punjim Mobile Users 50000 180000 270000 275000 40000 50000 W Symbol E S S S S

We can put the respective city in respective region like west, east, south and north and put the first word of region against each city name. We now add potential users under W,E,S & N and represent as follows: North Territory 310000 West Territory 480000 South Territory 725000 East Territory 250000

Conclusion: - Attitude formed is, south territory has highest potential.

Illustration (b) Godrej Agrovet have provided following data for its cattle feed product Brand Milk More. Construct Nominal scale. District Region Sales District per day in Qtl. 300 7. Solapur 200 8. Baramat i 400 9. Sangli 150 10. Pune 105 125 11. Nasik 12. Satara Region Sales per day in Qtl. 260

1. Nagpur 2. Akola 3. Wardha 4. Aurangaba d 5. Jalna 6. Parbhani

Vidharbha Do Do Marathwad a Do Do

South Maharashtra Do 340 Do 280 Wet 500 Maharashtra Do Do 380 400

Let us regroup region wise sales and rank them Sr. No. 1 2 3 4 Regiona Vidharbha Marathwada South Maharashtra West Maharashtra Total sale in Qtls. Per day 950 380 880 1330 Rank II IV III I

Conclusion: Attitude formed is Western Maharashtra Region is having highest sales potential. In marketing research, ordinal scales are used to ascertain consumers perception on a brand, service, etc. Illustration a) Mobile users brand preference for handset manufacturers(ii) Ordinal Scale:

Attribu tes

L P Desi igh rice gn / t style wei ght

High techn ology

Batt ery life

Nokia Sony Ericso n Motoro la LG Samsu ng Panas onic Philips Sieme ns Mitsub hishi Alcatel TCL

Dura Reliab Voic Cari T bility ility e ng otal qual com sco ity pany re in % 99 % 99 % 97 % 93 % 82 % 80 % 68 % 66 % 30 % 13 % 5%

Illustration (b): Microwave ovens manufactures wants to know the brand ranking perceived by customers. Design ordinal scale.

Attributes Price(10) Weight Antibacterial Nutritiv After To (10) properties e food sales ser (10) (10) service ou (10) 5 LG 9 9 10 10 10 4 BPL 8 8 8 8 8 4 Kenstar 10 10 7 8 10 4 Samsung 8 8 10 10 10 4 Electrolux 6 9 9 8 6 3 Panasonic 6 8 8 8 6 3 National 7 7 7 7 7 3 Whirlpool 7 7 7 7 7 3 Bajaj 8 7 10 10 10 4 (iii) Interval scale: In marketing research, this scale is used to measure intensity by which attitude towards a brand varies on any marketing stimuli. Illustration: (a) Mobile telephone users may express Nokia brand in follows: Global brand Nokia cellular is liked by me the most, I neither like nor dislike Nokia cellular, I dislike Nokia cellular, I dislike Nokia cellular the most. Illustration (b) Consumers want to express the tastes (likes / dislikes) of Pizzas and burgers supplied by Pizza Hut, McDonalds and domino Pizza. Design Interval Scale.Attributes Like the most P D M Like P D M Neither like nor Dislike P D M Dislike P Dislike the most D M P D M

Taste Cheese Quality Briskness Thickness Spice Price

Conclusion: McDonalds Burgers is liked by most of the consumers. (Amul Pizza is not considered because only in Gujarat, it is served in ready to eat fashion whereas in other part of the country it is served in frozen condition, which requires further processing). (iv) Ratio scale: This scale is used to measure attitude on quantity sold, number of consumers, profitability, probability of purchase, etc. Illustration: (a) IT customers handled by the Telecom companies. Number of IT consumers handled by Tata Indicom is one tenth of that handled by Reliance Infocom. Illustration (b) A automobile dealer wants to get knowledge on profitability on consumer base of hero Honda and TVS Victor. Design ratio scale:Vehicle Hero Honda Passion TVS Victor GL Conclusions: Quantity sold in one year 230 205 Price /each in Rs. 46000 45000 Total sale Rs. 1058000 0 9525000 Commission earned per vertical 4000 4500 Total profit Rs. 920000 922500

(1) No. of consumers handled by Hero Honda Dealer are 1.12 times more than TVS victor dealer (2) Total profitability of TVS Victor dealer is 1.0027 times more than Hero Honda Dealer.

(v) Thurston scale: This is eleven point scale to express varying degree of attitude from unfavorable to favorable.B A C Unfavorable D E Neutral F G H I J Favorable K

Illustration (a) supposes a statement is made like, Enron Power Project is beneficial to India; the response from the consumers, politicians and govt. could vary from 100% unfavorable to 100% favorable. Illustration (b) Design Thurston scale for Saas-Bahu TV serials being run on most of the prime channels (SCMHRD May 2005) Solution: Following statements (from A to K) could be made. (a) All these Saas-Bahu serials build up negative value system by depicting disputes in the family. (b) All Saas-Bahu serials portray an irrational depiction of characters. (c) Telecast time of Saa-Bahu serials clashes with important programmes like News, etc. (d) All Saas-Bahu serials are monotonous. (e) Most of the Saas-Bahu serials are complete waste of time. (f) I have no positive or negative feelings about Saas-Bahu serials, (g) Saas-Bahu serials provide good entertainment after a hard days work.

(h) Most of the key characters of Saas Bahu serials become trend setters in respect to clothings, jewelry and other accessories. (i) Most of the Saas Bahu serials bring the whole family together (j) Saas-Bahu serials help to understand, analyse and solve the domestic crisis. (k) The Saas-Bahu serials are a good ways to instill family values in terms of obedience& respect (2) Compare rating and ranking scales (SCMHRD Dec. 2005)Solutions: Rating Scale 1. Attitude is measured from the point of view of intensity of the likes and dislikes 2. Interval data is needed 3. It is absolute 4. Examples Interval Scale Ranking Scale 1. Attitude is measured from the point of view of intensity of preferring one product over other. 2. Ordinal data is needed 3. It is relative 4. Example Ordinal scale, Semantic differential scale

(3) (i)

Construct Likert Scale, Perceptual Map and Semantic Differential Scale Likert Scale to study consumer satisfaction with tyre-brands +1 Agree 0 -1 -2 Strongly disagree

Score out +2 of Attributes Strongly Agree Cost friendly Grip Wear & tear Rubber quality longevity

Neither Disagree agree nor Disagree

Brand MRF JK Apollo

Sign

Score 2+2+2+2+2 = 10 2+1+2+1+2=8 2+1+0+0+0=3

(ii) Semantic differential scale to understand the images in the mind of consumers for washing machine manufacturers Remark Score Attributes Progressiv e Reliable Excelle nt +3 W Bette r +2 V G ood +1 LG Averag e 0 P oor -1 Attributes Tradition al Unreliabl e Weak Non custfocused Non response M Wors ore t poor

Strong Custfocused Responsiv e Brand Sign Whirlpool W Videoon V

Score +3+2+2+3+2 = 12 +2+2+3+2+2=11

LG LG +3+2+2+2+2=11 (iii) Following data is given for three Telecom companies. Prepare Semantic Differential Scale Attributes RIM BHARATI TATA Solution : +3 Reliability Tangibility Responsiveness +2 +1 0 -1 -2 -3 Reliability +3 +3 -2 Tangibility +2 +2 -3 Responsivenes s +1 +2 0 Assurance +1 +3 +1 Empathy +1 +3 +1

Assurance Empathy Brand RIM BA Sign Score +3+2+1+1+2 = 9 +3+2+2+3+3=13 -2-3+0+1+1=-3

Bharati BH Tata TA

Construct Semantic Differential scale for Management Institutes (Leading) in India Attributes Excell ent +3 Reputatio n Success of placement Quality of Placemen t Infrastruct ure Faculty Teaching Methodol ogy Special Units Admissio n Bett G Avera Po er ood ge or +2 +1 0 -1 V W ery orst po or -2 -3

eligibility 1) 2) 3) 4) Reputation: High rank, tie up with foreign Universities / Instt., admission tests are toughest, have international recognition, best aluminus Success of placement: 100% placement, multiple placement option Quality of placement: Abroad placement with MNCs, Average salary best among top B schools Infrastructure: provides financial aids, convenient location, high standard hostel & mess, high speed internet facility, all class room with LCD, high class book library Faculty: Well trained faculty, research done by faculties, visiting faculties from Industries Teaching Methodology: Good counseling, student faculty ratio 1:1, industry interaction as part of syllabus Special units: Known for marketing programme, known for mass media and finance programme Admission eligibility: Students with work experience, only engineers

5) 6) 7) 8)

Scores for Leading Management Institutions: IIM ISB ICFAI SYMBI INDIRA = = = = +3+2+2+2+2+2+1+1 = +2+2+3+3+2+2+3 = = +2+1+2+2+2+1+2+1 2X8 = +1+2+1+2+2+2+1+0 = 15 17 = 16 11

13

(iv)

Perceptional Map

Following data is given on Indian Refrigerator Industry (Size 165 lit. to 180 lit.) Brand BPL Godrej Kelvinator Samsung Whirlpool LG Electrolux Videocon Allwyn Voltas Daewoo Technology Direct cool Do Do Do Do Do Frost free Direct cool Do Do Frost free Price :Rs. 9290 8000 9990 8490 9100 9000 11000 8890 8290 8110 10500

Prepare Perceptual map.

Solution: Construction of Perceptual MapHigh price (Rs.) 12000 11500 11000 10500 # Direct cool Whirlpool Kelvinator BPL LG 9500 9000 8500 Voltas Gordrej 8000 Frost free $

Samsung Alwyn

Low Price

LAST CHAPTER APPLICATIONS OF MARKETING RESEARCH

I.

PRODUCT RESEARCH

Product research areas (1) Formulating new product

Marketing research techniques Regression Technique, Benefit Analysis (2) Product Line Perceptual Map Extension / Brand Extension (3) Test Marketing of Experimental new product research design (4) Re-launching of Qualitative Research declining product or Perceptual mapping CASE STUDY EXAMPLES (a) Apartment on wheels (b) Makeup room on wheels (c) Hotel apartment (d) McKinney Electronic Toll Collection Pass (ETCP) Product research would be also applicable to find out the reactions of consumers to manual

cameras vs automatic cameras. In addition to specific likes or dislikes of each product category, brand preferences within the category could form a part of the research. The objectives may be to find out what type of camera to launch and how strong the brand salience for the sponsors brand is. Another product of research could be to find out from existing users of photocopiers (commercial and corporate), whether after sales service is satisfactory, whether spare parts are reasonably priced and easily available and any other service improvement ideas for instance, service contract, leasing options or buy-backs. II. PRICE RESEARCH Price research is done in following two situations (B) When competitors product is available for comparison of the price. Coca cola, though startgin offering 300 ml at Rs. 7 as against Pepsis 200 ml for Rs. 6, returned back to Rs. 5 for 200 ml to attract target market

which was college going youth. (C) Well competitors product is not available for comparison Dabour India Ltd. Launch lime juice (Lemoned). During launching similar product was not available for price comparison that is why it contacted target customer (50 housewives, 50 working women and 50 cooks) (D) When price is the only benefit you are offering to targets, do not hide but hammer it. Cadbury Shweppes while launching sports cola and Canada dry offered 300 ml bottle at price Rs. 6 and communicated as follows:

Yehi hai Right Price Baby Just 6 bucks Nothing expensive about it Just 6 bucks(E) International Distillers & Vinters Research wine and alcoholic beverage market

and realize that 90% of the market exists below Rs. 250/price segment. As such it launch two pack sizes with brand names Green Lable & Old Gold price at Rs. 175 and Rs. 225 for 125 ml (these brands belong to green lable visky Lesser if you cannot identify affordability (as done by coca cola and dabur) you may adopt the second route largest possible customer segment. III Distribution Research Decision area Marketing research technique to be adopted 1) Selecting suitable Indepth interviews, channel option from focus group studies, two alternatives like exploratory research direct Dsitribution or Indirect distribution 2) Performance Cluster analysis

Appraisal of two horizontal channel partners (retailer vs retailer) 3) Encouraging or Qualitative research motivating channel or focus group studies members CASE STUDY EXAMPLE (A) Nagaland Govt. Labhlaxmi Lottery (B) Playwin (C) Sundaram Fastners (D) Rebok India (E) How Bollywood producers invented 7th 8th and 9th channel of distribution for the films*

Application of Research to Bollywood. Why and how Bollywood producers invented new channels of distribution for selling the films? Till 1992, if a movie was to recover just cost of production + distribution + marketing; it would have stayed in theatres for 50 days. (Minimum 3 show per day, all over India) The revenue earning ability of movies was not great because overall affordability of the society was weak. The balcony ticket during 1960-70 was Rs.1.50, which increased to Rs. 2.00 during 197080. It became Rs.20 by 1995 and then to Rs. 50 by 2005 for single screen cinema.

a)

b)

c)

Given below production + marketing cost for a movie, decade-wise, as well as the revenue per territory for different viewerships. (1) Production +Marketing cost for a movie decade wise Decade Production + Hit movies Marketing cost in Rs. Cr. Upto Rs.0.50 Dosti, Jangali Kasmir ki Kali, cr. Aaradhana, Daag, Aarjoo, Farz, Suraj, Sangam, Upkar Upto Rs. 0.75 Bombay to Goa, Janjeer, Bobby cr. Hathi Mere Sathi, Amare Prem, Kati Patang, Deewar, Roti, Trishul, Don, Shole, Roti kapada Aur Makan, Pyarab-Paschim Upto Rs. 1.25 Karma, Ram-Lakhan, Tejab, Cr Dostana, Aakhir Rasta, Himmatwala, Tohafa Upto Rs. 50 Laggan, Koi Mil Gaya, Krish, Cr. Devdas, OSO, Welcome, K3G

Sr. No. 1 2

60-70 70-80

3 4 (2)

80-90 20012008

Indias movie market is distributed in 6 territories. Total 13,000 single screen theatres, in 6 territories entertain Indian Public. Till 1992, the revenue from movies was as follows: Balcon y ticket Revenue (all India) Movie stays for 50 100 175 days days days Rs. 1.50 Rs. 0.50 0.48 0.65 0.80 Movie cost

Sr. Decade No. 1 60-70

2 3 4 5

Cr. 70-80 Rs. 2.00 Rs.0.75 Cr. 80-90 Rs. 5.00 Rs.1.25 Cr. 90-2000 Rs.20.0 Rs.2.0 Cr. 2000-2008 Rs.50.0 Rs.10.0 Cr

0.74 1.25 2.05 100.0

0.90 1.50 2.35 170.0

1.10 1.75 2.60 250.0

(3)

Comparison of Revenues before and after 1992 Revenue per week (fig. in Rs. Cr.) Before After 1992 to 2000 1992 Movie (single Various Total screen) Rights 0.035 0.29 0.15 0.44 0.070 0.60 0.15 0.75

50% viewership 90% viewership d)

Bollywood invented new channels of distribution, since 1992 Example Khalnayak - 0.75 cr), K.K.H.H. - 2.25, Mohabbatai 7 Cr., Devdas -12 Cr. K.K.H.H. 11.37 cr., Mohabbataien 6.5 Cr., Dil to Pagal Hai 6.4, Hum Aap Ke Hai Kaun, 4 Cr., Kaho Na Pyar Hai 3.21 Cr., Laggan 2.87 Cr., Mansoon Wedding 60 Cr., Devdas 12 Cr., Koi Mil Gaya & Krish

Year Invention 1992 Music right 1995 Export Rights

1997 DVD Satellite

10 Cr. & Kaho Na Pyar Hai 2 Cr., KaranArjun 0.50 cr., Krish & Koi Mil Gaya 12 Cr., Murder 20 Lakhs

e)

Alter 2000, Multiplex mushroomed in India. As on today i.e. June 2008, total 360 screens through 90 multiplexes are available for show-business. Now a movie can recover production + marketing cost in a week. Example: Movie Jannat released in June 2008,Singh is King,Rab Ne Bana Di Jodi&Gajni. Cost All India Revenue in one week Single Multiple Total screen x cinema 14 cr. 2 cr. 16 Remark

Jannat

5 cr.

Super Hit

IV ADVERTISING RESEARCH Decision area Marketing research technique 1) Determining ad- Focus group interview, objectives (which qualitative research objective should be chosen) 2) Evaluating ad-copy Experimental research and ad-effectiveness deisgn 3) Deciding media Qualitative research 4) Advertising budgets Opinion poll, qualitative research

In attention, advertising research is revolving around (1) Copy (2) Media CASE STUDY EXAMPLES (A) Sales Promotion Campaign by Asian Paints (B) Sales Promotion Campaign by BT, BW, A&M V. CONSUMER BEHAVIOUR RESEARCH Consumer Behaviour and the factors that affect consumer buying behaviour can be very well studied through HYPOTHESIS TESTING. Following illustrations will focus on consumer behaviour and applications of marketing research: Illustration 1 Consumer Behaivour and Brand Extnesion Hypothesis Hypothesis 1

H0: The hypothesis of the study is that cultural differences do not have an impact on brand extension across countries as well as states within a country like India. For example, people in the state of Tamil Nadu may have different consumer profile compared to that of Punjab and but might perceive and accept brand extensions in a similar way. Cultural differences do not have an impact on brand extensions. H1 : The alternative hypothesis is that cultural difference do have an impact on brand extensions and is very relevant in the Indian scenario. In fact, brand extensions judged to be a poor fit by U.S. respondents, such as Coke. Indian respondents perceived popcorn and McDonalds chocolate bars, much more positively. Hypothesis 2 Cultural differences will exist to the level of importance attached to individual product attributes.

The hypothesis 1 and 2 were based upon the observation that, within a product category, different brands and/or products featuring specific attributes often carry significantly different tags. Objective The objective of this study is to examine whether cross-cultural difference exist in consumer perceptions of the various attributes in brand extensions. Also we try to examine whether cultural differences will be stronger with extensions that are further away from the parent brand, which was referred to as low fit extensions. The brand extension selected were Coke Popcorn, McDonalds chocolate bar, Mercedes-Benz watch and Kodak greeting cards. To find out whether cultural differences will exist in the amount consumers would expect to pay for each product / brand extensions and the frequency of their buying. Another objective was to check whether cultural differences will exist in the level of importance attached to individual product attributes, like colour, taste, etc.

Research methodology A survey was conducted to study the impact of cultural differences on brand extensions in the Indian scenario. This was done by carrying out a market research on consumer responses to the various brands along with their extensions (listed) and which are parts of the FMCG sector. List Kelloggs Bisucits / Kelloggs Cereals Lux Soap / Lux Liquid Soap Maggi Noodels / Nestle Chocolate Nirma Detergent / Nirma Soap Lipton Tea / Lipton Ice Tea

Exploratory Research design was constructed to learn various stated and unstated needs of people w.r.t. brand and brand extensions. The questionnaire was formulated after interviewing 15 samples. The sample size selected for the main survey was a total of 90 respondents considering the

time duration fo the project and it was felt that the sample size of 90 was substantial enough to represent the universe. The respondents were typically the existing users of either of the various brands being mentioned. Almost 45% of Mumbais population comprises of Maharashtra (the second most being Gujaratis) so care has taken to see that the sample comprises of similar percentage of maharashtrians. Hence the Western region sample size is more than 55% of the total sample size. Although the type of sampling used was convenience sampling, care was taken to ensure that the example was as diverse and representative a s possible by targeting respondents across the various cultures, income levels, education backgrounds, etc. so care was taken to ensure that people from different regions or states were considered. Similarly the survey had a greater mix of families, rather than individuals since they are more often the decision makers when it comes to buying such commodities. Analysis and Findings

After collecting the data from the respondents, the data was complied and the analysis was done using SPSS. PREFERENCE OF INDIAN AND FOREIGN BRANDS IN VARIOUS REGIONS. Independent sample test to check for variation in responses for preferred brands (Indian or Foreign) based on region and the significance level to be 0.05. it was found that the significance was observed to be greater than 0.05 thus proving that variation exists in the responses of consumers of various regions for Indian and Foreign brand preference. 75% of the respondents preferred buying Indian brands to foreign brands and this was seen on an overall basis even though, brands mentioned except Nirmal are foreign origin. Their adaptation to indianisationis of great importance. Imported products may be more referred as foreign products. Zonal differentiation exist and North szone has more liking for foreign products compared to South and West. South has more affinity for Indian Brands.

The most popular brands as found from the survey were the well-known brands such as Lux Soap, Maggi Noodles and Nestle Chocolate, which shows that in case of Maggi not just the parent brand, but also the Nestle chocolates are really popular among the consumers. This is not really the case with the other parent brands. INFLUENCE OF CULTURE AND TRADITION ON BRAND PREFERENCE The significance is observed to be greater than 0.05 suggesting that the responses of consumers vary between regions. BRAND ATTRIBUTES CONTEXT IN THE INDIAN

With regards to friends / family influence, it was found that it had a moderate to low influence on respondents. Also the brand name had a high to moderate influence, whereras quality had a high influence on the purchase decision of the respondents. CONCLUSION

Consumers across the world respond more favourably to brand marketing that shows sensitivity to local preferences. Brand extensions research yield an important insight and it is observed from the survey that there is difference in responses from people of North, South, East and west regarding whether traditions and culture influence the choice of brand extensions. Multiple brand names or brand extensions tend to create confusion among people in the various regions. RECOMMENDATIONS Marketers marketing products in religious and culturally diverse countries need to remember that in each purchase situation the consumer brings a set of cultural experiences and preferences to a particular product, brand or brand extension. Marketers need to adopt different strategies and techniques to understand consumer preferences in culturally diverse markets. Illustration 2 Lux Soap and changing consumer behaviour Research Problem

1) Whether Shah Rukh Khan is the right choice as a male ambassador for Lux. To test this we will have to find out whether people associate Shah Rukh Khans qualities with Lux. 2) We shall also analyze whether Lux needs to target the male consumers also. We shall test by finding out whether men really have a say in the purchase decision for soaps. RESEARCH OBJECTIVE Primary Objective To find whether there is an image mismatch between the image of Shah Rukh Khan and Lux Secondary Objective To find out whether the new improved positioning of Lux (targeting men also) is required? To find out which male celebrity (if any) is the most appropriate for Lux.

RESEARCH HYPOTHESIS H0 : There is no mismatch between the image of Lux and Shah Rukh Khan. HA : Tehre is a mismatch between the image of Lux and Shah Rukh Khan. FINDINGS Qualities Rank Rank for Lux for SRK Masculine 5 6 0 Feminine 1 2 1 Status 3 5 2 Sophisticated 4 3 1 Cool / Hep 5 4 1 Glamorous 2 1 1

1 2 3 4 5 6

Summary of Findings 1 2 Glamour Feminist Correlation There is not a significant Difference There is a significant

3 4 5 6

Difference Mascutinity There is a significant Difference Status There is a significant Difference Sophistication There is not a significant Difference Cool / Hap There is a significant Difference

ANALYSIS Market Share of Various Soaps: Out fo the total 21 men interviewed 5 of them use Lux, 3 use Cinthol and 3 use dove. 9 of them use soaps other than those mentioned here. From among the 73 women interviewd, 18 of them use Lux i.e. around 25% of them use Lux, 13% use dove and pears and around 17% use Cinthol. A very small share goes to Dettol, i.e. around 2.7% whereas around 25% of the female respondents prefer to use other soaps like Chandrika and other medicated soaps. Men and Buying Decision:

From, the data collected, we have found that out fo all the men interviewed only 21% either buy the soap themselves or ask someone else to buy the brand they specify. This means that the men do not have any influence on the buying decision for any brand of soap. Thus the strategy of Lux of trying to capture the male segment of the society by targeting them would not work as men do not influence the buying decision. Reason for buying a Soap: From what we have collected, we find that just 4% of the respondents buy soap because a celebrity endorses it. Majority of the respondents buy it for medical reasons (31%) or because of its attractive packaging, shape or scent (24%). Not even one of these respondents claims to be buying their brand of soap due to influence by friends or peers. A good 14% of the respondents buy their brand of soap because they think their brand is value for money. Thus we can infer that the buying decision for a particular brand of soap largely depends upon medical reasons. Thus Lux

would be better off trying to capture more market share by using that strategy. Lux and Male Celebrity? When the respondents were asked about their opinion on Lux using a male celebrity to endorse it, only 23% said that they liked the idea, 20% said that it does not matter to them whether Lux uses a male or a female celebrity, whereas 57% of them did not like the idea. This shows that the Ad has not been absolutely accepted by the general public. The Ad might have created a stir in the market, but that according to us will not attract many customers and may be not improve the market share for the soap. Preferred male Star in Lux Ad: I fhte company plans to continue with a male celebrity in its ads, it should take Saif Ali Khan as majority of the respondents (31%) though he is more of a metro sexual man as compared to SRK. He was followed by Shahid Kapoor with 19% votes. This supports our research as it shows that the public have not been able to connect to the Lux-Shah Rukh

Khan partnership and the company would been better off if they would have chosen either Saif Ali Khan or Shahid Kapoor for the same. Both Saif and Shahid are on the up in their careers and are thus very much in the news. The metro sexuality quotient is very high in both of them and thus very much liked by youth of today. LUX AD FEATURING SHAH RUKH KHAN: Nearly 1 out of every 2 people asked did not like the Lux Advertisement featuring Shah Rukh Khan. Also, the number of people who liked the Advertisement is a 19%. Most of the people were of the opinion that the advertisement was not only unaesthetic but also that it could have been shot in a better manner as it was the first time that Lux was experimenting with a male celebrity. The advertisement has created a stir in the minds of the consumers, but has not necessarily helped the company in increasing its market share. The advertisement is in the news, but not for the reasons the company must have wanted it to be in. this has lead to confusion in the minds of the consumers.

TESTING OF HYPOTHESIS To test our stated hypothesis, we wanted to see if there was a correlation between the qualities associated with Lux and those associated with Shah Rukh Khan. There is significant difference in the rankings given to the qualities for each Shah Rukh Khan and Lux. 1. There is no significant Difference in the Glamour quotient of Shah Rukh Khan and Lux. 2. There is a significance Difference in the Feminine quotient of Shah Rukh Khan and Lux. 3. There is no significance Difference in the Sopyhistication quotenti of Shah Rukh Khan and Lux. 4. There is a significance Difference in the Masculinity quotient of Shah Rukh Khan and Lux. 5. There is a significance Difference in the Status quotient of Shah Rukh Khan and Lux. Thus, we find that there is a significant difference in the quotients of 4 of the 6

qualities used to describe Shah Rukh Khan and Lux. Thus we conclude that there is an image mismatch to some extent. Therefore, we reject the null hypothesis (that there is no mismatch between the image of Lux and Shah Rukh Khan), thus concluding that, There is an image mismatch between Lux and Shah Rukh Khan. Analytical marketing research Data Analysis Methods

Unvaried data analysis analysis (Data obtained in Single variable) Testing of hypothesis analysis

Multivariate (Simultaneous Analysis of two or More variables Correlation

HYPOTHESIS 4.0 INTRODUCTION In the chapter on preparation and tabulation of data we discussed the appropriate procedures for collection and tabulation. Once we tabulate the data we need to analyze it, i.e. is we should verify the hypothesis stated in the problem. To do so we need to learn hypothesis-testing methods. If the manager of a shopping mall wants to find out if customer satisfaction is at least 90 percent, we can test

the validity of this hypothetical parameter by the use of hypothesis testing. Hypotheses test, also known as tests of significance, enable us to decide on the basis of the sample results if the deviation between the observed sample statistic and the hypothetical parameter value (or) statistic is significant (or) might be attributed to chance (or) the fluctuations of sampling. 4.1 METHOD OF HYPOTHESIS TESTING Definitions of Hypothesis (i) Hypothesis It is a statement or assertion about the statistical distributor or parameter of statistical distribution. Alternatively hypothesis is a claim to be tested. (ii) Null hypothesis A hypothesis of no difference is called null hypothesis (iii) Alternative Hypothesis It is a hypothesis to be accepted in case null hypothesis is rejected. In other words, a complementary hypothesis to null hypothesis is called alternative hypothesis.

4.12

Steps In Formulating And Testing

Testing for statistical significance follows a well-defined pattern. Though one may not be able to understand all the terms in these steps at this stage, we are mentioning them here. They will be discussed in subsequent chapters. The steps are as follows: State the null hypothesis: The nu