Research Proposal : Multi-functional Handbags

March 2012

Prepared by: Daksha Chopra M. Des Sem II NIFT

CONTENTS 1. INTRODUCTION 2. REVIEW OF LITERATURE (ROL) 3. OBJECTIVES 4. DESK RESEARCH 4.1 Purpose 4.2 Procedure 5. QUALITATIVE RESEARCH 5.1 Purpose 5.2 Population & sampling 5.3 Procedure 6. QUANTITATIVE RESEARCH 6.1 Purpose 6.2 Population & sampling 6.3 Procedure 7. REPORTING 8. TIMING 9. FEES 10. CREDENTIALS Appendices Credentials Quality Control Terms of Business

1. INTRODUCTION A "handbag" is a larger accessory that holds items beyond currency, such as a woman's personal items. American English typically uses the terms "purse" and "handbag" interchangeably. The term "handbag" began appearing in the early 1900s. Initially, it was most often used to refer to men's hand-luggage. Women's accessory bags grew larger and more complex during that period, and the term was attached to the women's accessory.

2. REVIEW OF LITERATURE Over the last few years, handbags market has witnessed a sea change which has resulted in the entire shift in its value chain with handbags production being shifted to low-cost countries like India, China and at the same time new channels of distribution emerging like online retailing. (http://www.researchandmarkets.com/research/582ad6/handbags_market_re) The women handbags market in India is estimated at Rs 2,000 crore. It is projected to grow at about 15 per cent annually in the next five years to Rs 4,000 crore. The key growth drivers are: increasing number of working women, their rising incomes, increasing fashion consciousness and aspiration levels, and growing influx of foreign brands. Also, change in the consumer preferences like growing demand for eco-friendly handbags has forced the companies to change and adapt their strategies according to the changing consumer preferences. The Majority of the market belongs to unbranded products, including local or regional brands. However, going forward the growth rate of your branded segment is estimated to be much higher than the overall market. There are so many types of handbags available in the market for different purposes hence, to avoid the hassles there is a dire need of a multi-functional handbag. (KIT: Women's handbags market in IndiaStrategic tools for the practising manager Technopak Advisors / New Delhi Aug 22, 2011, 00:15 IST) 3. OBJECTIVES The overall objective is to understand the need of a multifunctional handbag and to finally come up with a new design. This has been broken into the following subobjectives:

3.1 To examine what type of handbag is used for what purpose and the difficulties with it. 3.2 To identify attitudes towards new designed handbag. 3.3 To determine promotional platforms that can be used to launch it.

The objectives are detailed under each sub-objective: 3.1 To examine what type of handbag is used for what purpose and what are the difficulties faced by handbag users. This objective would seek what are the different types of handbags used by people and what is the purpose they serve (Structure & Function). It will establish which kind of bag is most preferred the difficulties in using multiple forms of handbags and hence, most importantly it will attempt to identify the design elements of the new handbag design.

3.2 To identify attitudes towards newly designed handbag. This objective would seek to go beyond the practical uses. It will be necessary to introduce the newly designed handbag and discover which groups of people are most likely to make use of this multi-functional handbag. This should give indications of the quality and size they are likely to buy and whether they would be prepared to pay more for the newly designed handbag. It will establish what other kinds and other brands of handbags users are aware of. It will look at both spontaneous and prompted awareness.

3.3 To determine promotional platforms that can be used to launch it. This objective is far more exploratory and will help to discover what appeals to the most promising segments for the brand.

The proposed research will have three stages. The first stage will be to inspect existing sources to uncover usage figures and any useful information. The second stage will involve qualitative research to provide in-depth information on handbag usage, difficulties faced by handbag users and the possibilities for the use of multi-

functional handbag. This will help to design the questionnaire to be used in the third stage.

4. DESK RESEARCH 4.1 Purpose Search of secondary sources will be carried out to refine the objectives and provide lines of enquiry for the next stages. Specifically, the desk research phase will gather information on country/region wise usage of handbags over the last ten/five years. This trend data should give a useful indication about the status of the marketplace. At this point, I must also generate a list of brand names and uncover any pertinent information on competing brands that may be useful in the next parts of the research. The desk research will attempt to establish the following: How much is the market for handbags? (if possible the research can be done specifically for multifunctional handbags) What kinds of handbag are usually used? What is handbag currently used for? What prices are charged? What handbag sizes are used? What are the difficulties faced while using available handbag? What is the frequency of buying? What promotions are currently used? Who should be the target audience?

4.2 Procedure The search will begin talking to different handbag selling sources like: brand showrooms, retail outlets and street shops. Would brief them on the requirements of this research. The sales team would be an essential part of this. Reports and information on the domestic marketplace for handbag brands, information on distribution to retail outlets, handbag supply for street shops, correspondence with

customers, regional buying patterns, any complaints. This will be indicative of the likely domestic marketplace and will indicate strengths and weaknesses that will help in segmentation. An external search will also take place. Will obtain and analyze existing market assessments. Will inspect published research for any indications of handbag use. Will intend to create a portfolio of advertising and promotional materials used by companies dealing with handbags. This will give materials that will allow exploring likely promotional platforms.

5. QUALITATIVE RESEARCH 5.1 Purpose Given the exploratory nature of some aspects of the objectives, will provide with detailed qualitative information. Focused research will be used to explore and understand the attitudes of potential customers towards the new product and subsequent quantitative research will be used to measure how widespread these attitudes are. The location will be Mumbai. The qualitative phase will probe the following: The kinds of handbags that are usually used and its purpose Types and brands of handbags of which the users are aware What type and brand of handbag is currently used for The difficulties faced in using handbags available Which groups of people are most likely to make use of this multifunctional handbag Whether they would be prepared to pay more for the new designed handbag Whether the newly designed handbag is confused with kit-bags

5.2 Population and sampling The proposal will have 3 groups with the following profiles: Group 1 Brand buyers Group 2 Street shoppers Group 3 Retail outlet buyers

These will include: Occasional buyers Regular buyers

5.3 Procedure Will need to introduce the product, I intend to describe, and then show, the product along with the likely competitors. One issue here is that of material, which could be an important variable. The skilled moderator will ensure that this does not become a distraction. 6. QUANTITATIVE RESEARCH I propose to carry out a telephone and online study using a questionnaire in Mumbai. This has been chosen as a cost-effective way of contracting relevant respondents. Personal interviewing would go outside the budget. I have not proposed a postal study because I feel that the telephone and interactive sites gives us the opportunity to select people accurately and swiftly. This gives an assurance of achieving the desired number and type of respondents.

6.1 Purpose This stage aims to quantify the type of handbag and the kinds of handbags used. It will also give percentages of handbag brand names of which users are aware. I will provide percentages for both spontaneous and prompted awareness. By establishing classification data, I will know what type of people buy and use, and the prices they are prepared to pay. I do not think the negative name association will need to be probed at this phase, but I can add a question on that too.

6.2 Population and sampling I have made the decision to carry out 100 interviews in the market, nearby locality of different categories. This will give a spread of responses and the opportunity to identify interesting differences. It will be with the person mainly responsible for the usage of the handbag. Interlocking quota is as follows: Age group Working Non-working Total sample

16 to 21 years 22 to 25 years 26 to 30 years 31 to 35 years 36 to 45 years Total 6.3 Procedure

10 10 10 10 10 50

10 10 10 10 10 50

20 20 20 20 20 100

The questionnaire will be developed by referring already created ones by me which will be approved by the concerned faculty. The questionnaire will probe the following: What kinds of handbags are usually used? What kinds of handbags are used for what purpose? What other kinds of handbags and other brands are the users aware of? What is handbag currently used for? What are the difficulties faced while using the available handbags? Which groups of people are most likely to make use of multi-functional handbag? What sizes are they likely to buy? Would they be prepared to pay more for the newly designed handbag?

Where possible, questions will be pre-coded, but, for costing purposes, I have assumed few open-ended questions and a maximum duration of ten minutes. In case of the open-ended questions, code frames will be prepared, based on the response of the first 10 per cent. The analysis will involve computer tabulations, in the form of frequency distributions. Subsequent requirements for statistical analysis will be discussed, once the initial data is evaluated. I intend to weight the data to bring the data in line with the already approved and certified records.

7. REPORTING Following the qualitative section of the research, an interim presentation-report will be submitted. Once this has been approved, there will be a formal presentation of all findings, along with conclusions drawn.

8. TIMMING The table below indicates a suggested timeframe for the project. Week 1-2 2-5 6 7 8 9 10-13 14-15 16-17 18 19 9. FEES The fees quoted below are exclusive of VAT and are subject to the standard terms and conditions, which are appended. The fees are subject to the assumptions contained in these proposals and I reserve the right to make adjustments should any assumptions prove to be incorrect. Activity Desk Research Qualitative fieldwork Qualitative/desk research report available Questionnaire development Pilot (n = 15) Pilot debriefing Quantitative stage (n = 100) Coding and data preparation Analysis Presentation Final report submission

Phase Desk Research

Description 20 hours Senior Executive 30 hours Junior Executive Some amount to purchase/access relevant reports

Fee Rs. 2000 Rs. 3000 Rs. 2000

Qualitative Research Quantitative Research Total Fee

Three focus groups, 25 interviews No, of respondents - 100

Rs. 5,000 Rs. 5,000 Rs. 17,000

10. CREDENTIALS: The project will be carried out by me, Miss. Daksha Chopra. Under the guidance of Dr. Ajit Khare who has worked for many years in the market research field. He has been a faculty at NIFT Mumbai centre. I will be fulfilling the responsibility of taking the questionnaire to the focus group and completing it. I might require some assistance for conducting the personal interviews.

QUALITY CONTROL The interviewers will be trained and supervised. 10% of the interviews will be checked in one of the three ways: in person, by telephone or by post. All fieldwork will meet the industry standards laid down by my respected faculty.

APPENDICES Sample Questionnaire: What kinds of handbags are usually used? a. Clutch b. Handbag c. Shoulder bag d. Back pack

What is the purpose your bag serves? a. To carry daily utility only b. Used as fashion statement

What other kinds of handbags and other brands are the users aware of? What is handbag currently used for? What are the difficulties faced while using the available handbags? a. Shape b. Size c. Capacity

How much would tyou pay for a newly designed multifunctional handbag? a. 500-1000 b. 1000-1500 c. 1500-2000