Presentation on theme: "- 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."— Presentation transcript:
- 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 problem Brief Agency Proposal Questionnaire Design Questionnaire Design Data Collection / Fieldwork Data Collection / Fieldwork Data Processing Data Analysis & Reporting Data Analysis & Reporting Solution
8 Initial stages of the Marketing Research Process Client problem Brief 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 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, whats 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
13 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 LikeabilityConcept 1Concept 2 % Did not like the offer210 % Like the offer a little1320 % Like the offer quite a bit3127 % Like the offer very much5443 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
16 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 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 ACNielsens 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, agencys study design …Qre 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 ChennaiDelhiMumbai 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