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CMK for non-CMK Finance TRAINER: Maria Bezzubova CMK DRA CEEMEA F&HC April, 2010.

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Presentation on theme: "CMK for non-CMK Finance TRAINER: Maria Bezzubova CMK DRA CEEMEA F&HC April, 2010."— Presentation transcript:

1 CMK for non-CMK Finance TRAINER: Maria Bezzubova CMK DRA CEEMEA F&HC April, 2010

2 After the training you will:  Understand CMK role in the organization  Understand what market research is, strengths & limitations  Know the key types of research: when? why? how?  Find out what typical tools CMK offers you, what data exists and where you can find it  Understand CMK work process, key principles; how to initiate & support a research

3 CMK Introduction

4 Champion the “Voice of the Consumer”  CMK leads strategic thinking as consultants on consumer and market research to internal multi-functional business teams  CMK leads actionable consumer and shopper research design and analysis to answer each specific business question  CMK assure that consumer & customer data are valid, actionable, high quality and interpreted objectively Whatis the role of CMK in P&G? What is the role of CMK in P&G?

5 CMK R&D MKT F&A CBD Design pricing strategies & Maximizing our portfolio Drive shopper satisfaction and retailer strategies Plan efficient strategy touching consumers ’ hearts Develop best products meeting consumers ’ needs  INTERNALLY, we work closely with other functions including R&D, MKT, F&A and CBD to help them:  EXTERNALLY, we work closely with research agencies to run studies and collect information Whatis the role of CMK in P&G? What is the role of CMK in P&G?

6 CMK Functional Structure CMK function consist of six sub-departments Your first contact is Local Category / CBD CMK! GBU CMK MDO CMK COE CMK (Center of Expertise) MM GBS (Market Measurement) CATEGORY CMK CORPORATE CMK GBU CMK MDO CMK CBDCMK

7 F&HC + Baby Marina Oussik F&HC + Baby EE Anna Pavlova Gillette + PBC +OC Alexander Sitnikov Fabric & Home Care EE Anton Kadyrov CBD CMK In-store innovation Ivan Shakhidzhanov CBD Innovation Anastasia Gerasyuk FemCare EE Dmitry Logachevski Oral Care EE Beauty + BraunGillette + PBC + OC CBD CMK Olga Kokoreva CBD National Accounts EE Dmitry Kozlovskiy Beauty + Braun EE Julia Purvina CBD National accounts Russia Irina Nerpas CBD National accounts Ukraine Corporate CMK Ksenia Shevchenko EE BO and Trends Anna Vernitskaya Laundry & Baby EE Inna Ustinova Business Assistant Anton Borisyuk CMK Leader EE CMKEE Structure CMK EE Structure Arthur Mukhamedov Market Analysis EE Yulia Anoshina Hair care EE Berenike Ullmann CMK Director CEEMEA Masha Buzhinskaya CBD EE + DRA Functional specialists Anastasia Nosoreva Functional specialist

8 GBU Ekaterina Gladnikova FemCare FMOT GBU Baby Care GBU IBODRA Yaroslav Kumechko Market IBO – IS, Trial Maria Bezzubova DRA GBU F&HC CEEMEA Polina Nesterenko Market IBO MAP (Mastery Application Pillars) Olga Trufanova Market IBO - ROI Gillette GBU Natalia Baluta FemCare GBU IBO Anton Kleymenov Gillette Grooming EE Julia Kamaldinova GBU Baby care FemCare GBU Masha Buzhinskaya CBD EE + DRA Market Leader Elena Efremova Naturella Global Liliya Askarova GBU Baby care Functional spec. Zoya Andriets GBU Baby care

9 Research Basics What research is about..

10 Do we need research? Why?

11 Research is about…  EXPLORATION - to get insights/data, which help formulate possible options, generate ideas, etc… (example, “greasy dirt on clothes is a key stain problem”).  PROBLEM / OPPORTUNITY IDENTIFICATION  EVALUATION – to decrease the risk of a decision, which is already considered (build the tower, launch a product, change a price, etc…)  PROBLEM/OPPORTUNITY SOLVING

12 What else can we base our decisions on?  General logic  Intuition  Experience (including experience of others)  Flip of a coin  Or… go out and ask consumers! Of all these methods doing research can be the most time & efforts consuming, most expensive way of making decisions. We need to make sure we use it right (when and how)!

13 Talking with consumers Besides, research is not without it’s issues/risks… When asking consumers about something we are facing several challenges we need to be aware of:  People forget…  People are mistaken/confused…  People over promise…  People are “leaded” into an answer…  People give socially acceptable answers (avoiding sensitive topics);  It is hard to verbalize for respondents some of their feelings and thoughts; and etc… These issues need to be managed to guarantee good research results!!!

14 When to do research?  When it’s ACTIONABLE  There are alternative routes to pursue  There is a business question to answer  Research can help answer that business question  When there is NO ALTERNATIVE to research  The added value from the research will be higher than that from other learning ways  When the research cost / investment is SUBSTANTIALLY LOWER than the $ opportunity / at risk with the initiative

15 When not to do research?  There is no likelihood that the course of action will change following the research  Unfortunately, research does not replace doing our own homework (we shouldn’t ask consumers for ideas…)  We don’t really know what we’re looking for  It’s just too late

16 4/18/2015CMK for non-CMK training KEY CRITERIA  Business question exists  This question is actionable  Size of prize is significant

17 CMK input Considering all we talked about above, we can define why we need CMK:  To make sure we do consumer research, when it is really needed  To make sure that we use proper research tools, e.g. the ones, which can help that specific business questions  To make sure we avoid all the pitfalls of marketing research  To analyze research results and get recommendations on business decisions

18 Research Basics Key research methods

19 Research methods It is a lot about making a choice: QUALITATIVES Loosely structured guideline / free discussion; In-depth understanding to develop hypothesis; Result: summary with verbatims / consumer model / knowledge map; Typical question: “Why?” QUANTITATIVES Structured questionnaire; To verify hypothesis / to quantify qualitative finding; Result: table with figures, measurement; Typical question: “How many?”


21 Qualitative Research Qualitative Research Questions: WHY? HOW? It doesn’t answer the question: HOW MANY? Qualitative research allows to understand consumer:  values, aspirations, believes  attitudes, motivations  feelings, emotions  behavior (habits & practices) In addition it allows to:  generate ideas  stay close to consumer  know the consumers’ language

22 Qualitative Research: When to use it?  Basic Category Assessment / Idea generation tool  Preliminary step for quantitative research  To understand the results of quantitative research

23 Qualitative Research: limitations  Sample is small  Sample does not reflect the demographic structure of the society  It is not representative  Never say x% of respondents…  Respondents influence one another  Not comparable between groups due to unstructured interview  It only helps your judgment  Never call it ‘qualification’… Don’t make decisions based on qualitatives or draw conclusions about the whole population!


25 Quantitative research: basic facts It answers the question: HOW MANY?  Sample is large and reflects the demographic structure of the society  It is representative  You can say x% of respondents…  Comparable data between legs, groups, over time and countries, in case key research methodology is unchanged  Provides “hard” data to support a decision! It doesn’t give as much information on: WHY? HOW?  Questionnaire is structured, there is not much possibility to:  go into details on motivations, attitudes, as in qualitative research;  give answers outside of proposed variants (closed questions);  Provides numbers, it is hard to see real life person behind the data  Therefore, it is sometimes followed up with qualitative research to explain unexpected findings

26 Quantitative data: sampling and significance Russia, 145 mln. people Research sample Random! WHO and HOW MANY?  Target of interest  Decision importance  Analysis needed

27 Quantitative data: sampling and significance Research sample In reality, 78% like ice-cream 80% told that they like ice-cream Confidence Interval: from 77% to 83% (95% confidence) This means that if would have conducted the research 100 times, in 95 cases the result of research would be from 77% to 83% Formula Russia, 145 mln. people

28 Quantitative data: sampling and significance Similarly in our research, significantly higher number doesn’t mean 11% difference in purchase intent exactly. It means that we can be at least 95% confident, that concept (b) is better than concept (a). Still, there is a 5% of risk that this is not true… Tide kidsTide Sensitive (a)(b) Base: Total respondents 300 % Purchase Intent (Definitely would buy) 5465a

29 Quantitative research: design Survey (face-to-face) Diary Panel At-home (door-to-door) Central location In-store Outdoors (streets, etc.) Face-to-face Self-completion CAPI, CATI There are different ways to collect data in quantitative: Classification Location Completion method

30 10 Minute’s Coffee Break!

31 Research Life-Cycle Key techniques introduction

32 Initiative Cycle Find idea! Develop Idea Screen & evaluate idea What’s the price? Develop communication Track success Develop product

33 Research Initiative Cycle Idea generation Concepts development Concepts screening & evaluation Pricing development Communication development In-Market tracking Product/Pack development

34 Idea Generation Assessing the Landscape! - Segmentation studies - Habits & Practices - Market Sizes/Social, economic data; - Review other existing data, desk research -IN-TOUCH program - etc… Idea generation Concepts development Concepts screening & evaluation Pricing Communication In-Market tracking What do consumers need? How can we make current products better? What new products should we be making?

35 Market Sizes Estimates Key questions:  What is the growth rate for category X in coming periods? (FIRM planning process, for example)  Should we enter the category Y, based on its relative size and growth rates?  How does consumption in Ukraine in the segment compares to other countries? How the category will develop?  How does the crisis affect the market sizes’ development? How:  The estimates are provided by CMK through the evaluation process, which takes into account many factors, including:  shipments  Retail audit and HH panel penetration, consumption, share progression  macro factors: GDP growth, categories dynamics etc.  Estimates are updated annually (in 2009 due to the crisis were done on a monthly basis)

36 Market Sizes Estimates Using the file…

37 Concept Development Qualitative: - Insights development - Creative groups - Concept Labs - Concept tuning Idea generation Concepts development Concepts screening & evaluation Pricing Communication In-Market tracking How do we express consumer needs in the most motivating way? What is the most believable support? Product name - problems of perceptions Who are the people to try our product?

38 New Discreet Beauty Collection Discreet Air Multiform Discreet Water Lily Multiform Discreet Ocean Breeze Multiform Discreet Normal Plus Discreet Tanga 20 liners-29 RUR 60 liners-67 RUR 100 liners-106 RUR 20 liners-29 RUR 60 liners-67 RUR 100 liners-106 RUR 20 liners-29 RUR 60 liners-67 RUR 100 liners-106 RUR 20 liners-29 RUR 60 liners-67 RUR 100 liners-106 RUR 16 liners-29 RUR Discreet variants will be available in stores with below counts and prices. Beautifully Fresh Its amazing how the little things you do for yourself, that no one else can see, have an effect on how you feel. A dab of perfume, putting on matching underwear etc. These things somehow make us glow with femininity. Discreet’s new Beauty pantiliner adds a refreshing touch on the inside that makes you sparkle on the outside. The unique lacy design looks fabulous in your under- wear and its breathable fabric leaves you feeling beautifully fresh. And others just notice the effect. Concept board example

39 Concepts evaluation - Concept Screener - Concept Test (CT) and Concept & Use (C&U) - BASES (AC Nielsen) - Volume Forecasting Idea generation Concepts development Concepts screening & evaluation Pricing Communication In-Market tracking Do people like the idea? Are we cannibalizing current proposition? How does it fit with our equity and line-up? What volumes can we expect?

40 Volume Forecast CMK Volume Forecast model Volume forecast Concept Test results (Purchase intent, SOVA, etc.) Marketing inputs ( distribution, GRPs, trade support, sampling) Househol d Panel data

41 Volume Forecast - model Volume Total # of HHs = x Penetration = (Trial and Repeat) x Consumption = (Purchase Frequency x Volume per Purchase) - Cannibalization (SOVA) – for incremental volume

42 Product / Pack development Qual & Use Product test (SPIT) C&U Bases II Shelf tests BISIP Idea generation Concepts development Concepts screening & evaluation Pricing Communication In-Market tracking Does product and pack meet success criteria and consumer need? Does product performance fit expectation? How can we improve? Product/Pack development

43 Pricing evaluation PSA Concept Testing BASES (Price Advisor) Pricing Tiers Idea generation Concepts development Concepts screening & evaluation Pricing Communication In-Market tracking What is the volume impact of the x% price change on my brand? Competitive brand? Product/Pack development

44 Price Sensitivity & Awareness (PSA) Key questions:  to evaluate the influence of strategic (non-promotional) price changes  to assess their potential to increase retail sales/volume/market share  to understand pricing impacts in competitive dynamics; How:  Quantitative research: Computer Aided Personal Interviews (CAPI)  Limitations: Long execution timings and high costs Result:  Scenarios calculations (based on inputs)  Simulator (for our pricing moves and competitive reactions)

45 SKIM Analytical

46 10 Minute’s Coffee Break!

47 4/18/2015CMK for non-CMK training Communication - MCA/ICOM -Adv 2.0 (Next Idea) Idea generation Concepts development Concepts screening & evaluation Pricing Communication In-Market tracking How to get to consumer? (Channel, message) How many people will be persuaded to buy our product after our advertising? Is our copy working for our benefit?

48 P&G communication research techniques Adv 2.0 Next*Idea TMT Pre- Post- ICOM TV

49 In-Market Tracking - TMT (Trial and Media Tracking) - Equity Tracking - Retail Audit (AC Nielsen) - HH panel data (GfK) Idea generation Concepts development Concepts screening & evaluation Pricing Communication In-Market tracking

50 TMT (media part) helps:  To understand consumers' response to media;  To improve brand communication strategies, plans and copy by better understanding consumers' response to communication;  To assess the influence of competitive activities on the effectiveness of P&G advertising; Methodology:  Standard set of questions, continuous tracking of constant parameters;  Urban representative sample (400 resp. in 1 wave);  21 categories are tracked in Russia, 11 key categories – in Ukraine Trial and Media Tracker (media part)

51 Media Effectiveness Unaided/ Top of mind / Aided brand awareness Unaided/Aided advertising awareness Copy awareness Correct attribution Brand Usage Relevant set First choice Ever used / used last Ever purchased / purchased last Trial and Media Tracking: key measures (monthly reporting)

52 Example of TMT storyboard “Duracell Soccer Bunny”

53 Trial and Media Tracking : output for media part

54  What tracks… GBU Led Tier I & II Initiatives MDO-led Tier I initiatives Product Initiatives and Major Restages (significant pack change)  What doesn’t track… Comm. Innovation Size change Price changes Trial and Media Tracker (trial part) before April’09 - Initiative tracker

55 Quarterly cumulative reporting (months 1-3 of the initiative, 4-6, 7-9, 10-12) of the following: Aided awareness (with picture) Ever purchased / purchased last Brand on hand with pantry check Trial and Media Tracking: key measures in addition to Media part

56 Equity Research Tools in P&G  Equity Scan (ES)  Higher number of attributes and advanced equity score  Multi Brand Tracking Study (MBTS)  Simplified version of Equity Scan  Covers all categories in Ukraine except for Hair Care and Laundry  ES and MBTS results are not comparable

57 In-Market Tracking - TMT (Trial and Media tracking) - Equity Tracking - Retail Audit - HH panel data (GfK) Idea generation Concepts development Concepts screening & evaluation Pricing Communication In-Market tracking

58 A PANEL is a definite staying representative group of:  persons (Household Panel) or sales channels (Retail Audit)  surveyed or observed during a long period of time  according to the same program (issues) Definition of a panel

59 PANEL INDIVIDUAL PANEL CONSUMER PANEL RETAIL AUDIT è C l a s s i c è S p e c i a l Perfumery Groceries Petrol Stations HOUSEHOLD PANEL è C l a s s i c è S p e c i a l Baby Panel Car owner’s Panel Regional Panel SPECIAL PANEL è C l a s s i c è S p e c i a l Perfumery Groceries Petrol Stations Types of panels

60 Retail audit (+)  Hard data, based on documents (in most cases);  Very rich data source, which can be used for many strategic and tactical decisions, or as an input to many other follow-up research and analysis, but… (-)  Cooperation with trade  “Grey” economy realities (absence of documents, etc.)  Difficulties in case of fragmented, fast changing trade environment  No rural areas coverage  Expensive Key questions:  Markets dynamics (overall development, segments, tiers, etc.);  Competitive activities and their impact  Effectiveness of our activities  White spaces opportunities (distribution), etc.

61 Shopper Insights

62 Shopper Insights – Key tools  Shopper 1  Shopper 2  Virtual tools  Adjacencies research  Purchase Decision Tree research  Power categories research

63 Working with CMK

64 How to work with CMK  Start from business question!  Go to orgchart in slides 8-9 => identify key contact based on your question  You will be guided to the solution


66 D: Provide Finance with figures 15 $1 Million What is key CMK role in P&G? A: Conduct researches B: Bring voice of consumer C: Organize focus groups

67 D: Business question 15 $1 Million What is NOT a key criteria for doing a research? A: Actionability B: Size of the prize C: Delay in project CPS

68 D: How many? 15 $1 Million Which key question does qualitative research answer? A: When? B: Why? C: How much?

69 D: Data comparability 15 $1 Million What is NOT applicable to quantitative research? A: In-depth understanding B: Representative sample C: Structured questionnaire

70 D: Adv 2.0 15 $1 Million What is the best research tool to understand the impact of strategic price changes at volume? A: TMT B: PSA C: Qualitatives

71 D: TMT results 15 $1 Million Which source of info you should use to understand future trends in category development? A: Retail Audit data B: Volume forecast results C: Market sizes

72 D: Brand market share 15 $1 Million Which indice is NOT a key part of Volume forecast model? A: Purchase Frequency B: # of households in the country C: Trial

73 D: Retailer 15 $1 Million WHO IS THE BOSS??? A: Manager B: Bob McDonald C: Consumer

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