MR

MARKETING RESEARCH
Chapter 1: INTRODUCTION TO MARKETING

RESEARCH
I
(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 adcampaign 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 was to get 4 million youth registered
across 35 cities before general elections in May
13, 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.
This is a successful campaign because by first
week April, i.e. within 17 weeks of its launch, the
website has managed to register 5.66 million
youngsters.
(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 OF MARKETING RESEARCH

(a) To generate, refine, and evaluate
marketing plan.e.g bottled water.
CURRENT MARKETING SITUATION (Bislerry)
(i)
Market Size
Rs. 1700 Cr (2007)
(ii) Growth Rate
17-20% P.A.
(iii) Target Market

consumers
Health
conscious
(iv) Product Situation

profits loss statement
Current and projected
0-7-8
08-09
(a) Industry Sales
1700 Cr 2000 Cr
(b) Parles market share
25% 425 Cr
(c) Average Price per Unit MRP

Retailer
1000 ml
10 7
8
500 ml
6 4.50
5
Stokists
(d) Average cost per unit

1000 ml
5.60
500 ml
3.60
(e) Gross contribution (c-d) 1.4/0.90
%
20%
(f)
Sales volume in units

:
60% 500 ml + 40% 1000 ml
(g) Total Gross Margin
56.6 Cr 500 ml
24.2 Cr 1000 ml
20%
(h) Depreciation, Interest & Tax

50% of GM
42.5 Cr
(i)
Net profit (g-h)
42.5 Cr (10%)
85 Cr
(j) Advertising & Promotion cost 3% of sales 10.5

Cr
(k) Sales Force management & Distribution cost
6% 21 Cr
(l) Marketing Research expenses 0.1%
Cr
(m) Net operating profit (i-j-k-l) Amount
%
1.84%
3.15
7.85 Cr
(b) Monitor
marketing
performance
to
improve impact of marketing programme.
(A)(Example
of
launching
marketing/promotion of Hum Tum movie)
(B)Launching of Rub Ne Bana Di Jodi by
Yashraj Banner
(c) To identify market potential
India`s direcr selling market potential/size is
Rs 3500cr.
# Growth rate is 30%p.a
#Biggest
players
-Amway,
Oriflame,Avon,Tupperware&Modicare
@ One million employement generated last
year
* Out of total consultantants, 68%are
women&32%aremen.
[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]
NOKIA in India & Globe
Nokia`s performance in India
Year Sales in Rs Cr
2006
15852
2007
20928
2008
24942
Market Share:- 65%
Last year(2008) it sold 80 mn
handsets.Its Chennai plant makes 200
mn handsets & exports to more than
50 countries.
Indian Mobile Handset Market Size
Year ValueRs cr Volume mn cost of HS
2007 26000
90
Rs 2900each
2008 26500
108
Rs 2400
2009 27000
120
Rs 2200
Global Mobile Handset Market Size
Year ValueRscr Volume mn Nokia`s ms
2008 6,50,000
330
38.6%Rs 245000
cr
d)Stress on innovation
growth&profitability.
for
market
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 WAY
A 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,Saffola Weight Management Rice 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 weight-loss
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 Services
Profit before tax
Net profit
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
Presence in
Hair Care
space
Estimated Key brands Market

Closet
Market
share Competitor
Size (Rs.
(%)
Crore)
Value-added
200
Parachute
85
Clinic
coconut oil
advanced
Jasmine
Amla oil
350
Non-sticky
hair oil
250
Post-wash
conditioner
Hair gel and
creams
Hair fall
Shanty
Badam Amla
Hair
and
care
10
50
Silk-n-Shine
30
80
Parachute
after shower
Parachute
Hair
Therapy
30
NA
e) To research trends.
Trends in vehicle
Vehicles sales 07-08
cars
U.V.
C.M.
Two.W.
Three.W.
Total
1203531
344454
486817
7248600
364703
9648105
18
NA
Dabur,
bajaj
Keo
Karpin
Bajaj
Sunsilk,
Livon
Brylcreem
NA
Most Trusted Brands, Top 10

2009
1
2
3
4
5
6
7
8
9
10
Company
Nokia
Colgate
Tata Salt
Pepsodent
Ponds
Lux
Britannia
Dettol
Lifebuoy
Vicks
2008
4
1
13
8
9
3
5
6
7
2
2007
44
1
5
15
4
2
8
3
13
7
2006
71
1
5
11
6
2
8
4
13
9
2005
1
6
5
3
4
7
2
11
13
Trends in Retail Sales,(2009)
Country
USA
Japan
China
UK
France
Germany
India
Total Retail Share of

Sales
Un organized
$ bn
Retailers, %
3050
15
1218
35
805
80
600
20
590
20
545
20
415
95
IV IMPORTANCE
RESEARCH
OF
MARKETING
Marketing Research helps the marketer in

following decision areas:
MR for designing strategies to face recession.
1)Tata Housing:Research indicated shortage of 25 million dwelling
units across middle&low income families.Real
Estate companies like DLF, Kumar Properties, etc
could not market even Rs 10lacs worth properties
in sufficient nos during last 12 months.Tata
housing,after Nano success to group company,
decided to target low& middle income families
through SHUBH GRIHA PROJECT at BHOISAR
near Mumbai,in which each flat is priced between
RS 3.9lakh&Rs 6.7lakh.The project of 1000 flats is
huge success because it recorded 75% booking
within one month launch of project. Now Tata
Housing wants to take same model all over India.
2) Bajaj Auto:Two wheeler automobile markets are passing
through rough path. Demand for 100cc bike is
steady. But 125cc, 150cc, 180cc, 200cc are in bad
shape. To meet consumer expectations on
power&Price, Bajaj is launching 125cc motorcycle
at price Rs20, 000-24,000(made in china), which
is Rs8000 less than cheapest available bike

CDDAWN.
3) Aviation Industry:During 2008-09,Private airlines like Jet Konnect&
Kingfisher suffered 14% drop in passengers
carried.As such it were compelled to launch low
price offerings.
4) Acer:World`s third largest PC brand,Acer,already
revised price of entry level desktopEL-1600, to RS
9999from Rs 12000,to meet affordability in
recession of corporate&household customers.
5) PETER England Fashion& Retail:Indias branded apparel retail market size is Rs
26000cr.Madura Garments is Rs 1000cr worth
company& Peter England is Rs 270cr worth
brand. Peter England shirt prices are Rs 400
onwards. The company is planning to launch new
MASS
brands
like
Spinoff,Elysee,Byford&People at a price Rs
249-549.These shirts will be retailed through 100
different stores.
6) Cadbury India:Indian confectionery market is Rs 3500cr&
Cadbury commands 72% market share. During
early 2009 ,it launched CDM-Shots at price
Rs2.Earlier Cadbury did have low price chocolate
at Rs 2, like small pack of Perk & chocolate paste-
Chocki.But it did not market aggressively. Now

Cadbury is serious about all low price chocolates,
since it occupies 10% of its revenue.
7) Titan Watches:Indias watch market was flat last year(44
million units).Sonata brand is the leader& cash
cow for Titan. The price range of sonata is Rs 400
onwards. To face recession successfully in 2009,
Titan came up with sub brand of sonata--SONATA-SUPER- FIBRE,in price range of Rs
275- 550.Recession research indicated that 25%
of market exist below Rs 500/
Titans move, therefore was timely& yielded much
needed growth push to umbrella brand.
(a) Target Market
To understand taste, preferences and
choices of consumers, to understand
market size, to measure market potential, to
interpret consumer behavior, to study
influence of life style on target market
behavior.
(b) 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
(c) Price
To study price affordability of target market,

to study competitive pricing structure, etc.
(d) 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)
(e) 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 Crore

Company
HUL
P&G
Nirma
Quarter ended 2008

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
Company
Quarter ended 2008

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
Company
HUL
Santoor
Nirma
Quarter ended 2008

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

Company
HUL
Boroplus
Vicco
Turmeric
Quarter ended 2008

54.8 55.1
55 54.5
5
5
5
5.1
3.1 3.1
3.1
3.1
Category: Packaged Tea

Company
HUL
Tata Tea
Wagh
Bakri
Quarter ended 2008

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 in a couple of segments

Category: Toothpaste
Company
Colgate
HUL
Quarter ended 2008

48.2 48.5 48.2 48.8
30
30
30 29.5
Category: Ketchups
Company
Maggi
HUL
Quarter ended 2008

32.2 30.9 30.9 30.3
26 25.5 26.9 28.1
(b) 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.)
(c) Understanding
needs
wants
and
demands of target customers in India and
abroad.
(d) To formulate sales and distributions
strategies
(e) 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-n-carry
VII LIMITATIONS
RESEARCH
ACCEPTANCE
RESEARCH
OF
MARKETING
OBSTACLES
IN
OF
MARKETING
(1) In corporate India total number of companies

could be more than 10,000 whereas
companies engage in conducting marketing
research, in organized sector are around 10 to
15 and unorganized around 32 to 50; of which
the major
leading marketing research
companies and their sales turnovers are as
follows:
Marketing
Research
Company
ORG-MARG
Services
offered
People
meter,
retail audit
Sales turnover
for the year
2009 (Rs. In
Crores)
150
MRAS
MBA
RCG
STANDARD
RESEARCH
IMRB
Test marketing
Opinion polls
Perceptual maps
Customer
satisfaction
surveys
Advertising
testing research
Total
45
20
22
20
125
382
Corporate Indias turnover is few billion $ whereas

sales turnover of all marketing research
companies (organized and unorganized) does not
exceed more than Rs. 850 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. 50 crores and
40 crores respectively annually on marketing
research, which is not even 1 per cent of their
sales turnover.(HUL`s sales till march 2009, was
Rs16,476cr,GP Rs2115cr,NP Rs457cr) 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 viewer ship every six months.
The boys recruited are under-graduates who
do not know the purpose of the study. They
just write 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 entrusted to
first year management 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.
(4) Late results - well design and plan survey

which is to be completed by conducting
personal interviews might take 2 to 3 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.
(5) 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) Costly 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- suppose

for
researching
consumer
buying
behaviour,observation research is not
done.
(b) Inadequate skill of investigator- while
administrating
questionnaire,
mis
interpretation of open ended questions is
not handled carefully.
(c) Researcher
inclined
towards
predetermined results. Research should
not get carried away based on data
published by one company.For example,
Tata Motors says, Corporates for
transportation now prefers four wheeler
for small consignment upto 1.0 ton.Actual
research indicated that today also Three
wheeler command for transportation of
small cargos.
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 data
SOURCES OF SECONDARY DATAInternal Records & External sources
Internal
Records like Sales Records, Marketing data, Cost
information,Distributor`s reports, Customer feed-back reports.
External Sources:Published Data
Standardized sources Internet
Of Marketing Data.
Electronic
Printed
# Govt.
@ Store Audit
# Trade Association
@
Warehouse
# Periodicals
withdrawal services.
# News Papers
@ Consumer Panels.
# Books
@ Ac Nielson`s TVR
# Annual Reports
@ Multimedia Services
# Private Studies.
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
Information provided
Installed
manufacturing
capacities & actual utilized
capacities
for
all
manufacturers in India.
Availability
of
foreign
currencies.
Import-Export statistics
Commercial Intelligence &

Statistics
5) Centre for monitoring Indian
Economy (CMIE)
6) Census
7) Geographic Survey of India
8) Horticulture Board of India
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
Foreign Trade (DGFT)
10) Exim Bank
of
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
monthly per
literacy
employment
female
etc.
consumption &
capita income,
per
state,
across male &
Non-Government Sources
1) Org Marg
2)
INSDOC
Library)
3) Path Finder
TRP/TVR ratings& Rearch,

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 No.of

Retailers,
their
Retailers
classification, types, etc.
8)
J.D.Power
Asia Customer
satisfaction
Pacific
Index Survey
9) Technopak
} Area/market/site
10) A.T.Kearney }attractiveness for locating
organized retail shop.
TRP- Television (serial) rating points

i.e. no of
viewers for a programme.TVR- Television viewer
rating- TRP or TVR is the standard buying
currency for TV advertising.
Reach means how many watched, atleast
once&how much time per viewing was spent.
Match
IPLIPLIPLIPL2(TVR)
2(Reach) 1(TVR)
1(Reach)
Final
8.3
11.4
8.8
8.7
Semi
6.5
11.2
5.5
7.1
final 2
Semi
5.6
10
5.1
7.7
final 1
IPL-2 had 11,4 mn viewers as against 8,7 mn viewers for IPL-1
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
Methods of data collection in field research
Element
differentiation
of
Personal
method
interview
Mail method
Telephone interview method
No of samples
Not very high due time

constraint
Large no samples can be

contacted
Much more sample can b

contacted as less time require
Time
Is used when adequate

time is available
Used when considerable

time is available
Used when
available
Cost
Highest
Lowest
Moderately high as compare

to MM
Accuracy
Highest due to personal

interaction
and
data
recording
with
right
understanding
Fairly high but depends on sk

of interviewer in sorting o
misinterpretation of Qus.
Use
Not much useful when

large geographic area is
to be covered due to cost
constraint
Not very high due to

a. Response rate not
more than 20 to 25%
b. Wrong interpretation of
Qus. can not be sorted
out.
For
geographically
scattered samples this is
best suited
very
short
For outstation samples th

cost could be managed wi
mobiles. hence useful for loc
Al as well out stn surveys
Infrastructure
Huge infrastructure in form of

project leader, research officer
and investigators required
Almost negligible
In terms of skilled telephon

operator and data base
Type of samples
Useful
for ignorant
illiterate samples also
and
Suitable for samples

who can read and
write
Suitable if samples
properly communicate
Questionnaire
Samples loose interest with

lengthy questionnaire
lengthy questionnaire
is no prob. bcoz
Sample fill it at his
convenient time
Legthy questionnare wont d

bcoz sample is not direct
seen
Interviewer
Skilled Interviewer can

improve accuracy
Skilled or not skilled

Interviewer does not
affect accuracy
ca
Skilled Interviewer can improve

accuracy
Type of Qus
Suitable for spontaneous Suitable for spontaneous Suitable only for Spontaneous Ans
Ans since samples do not as well as well thought
like to tax their memories
Ans
Drawbacks/Limitations
If investigators are not Questionnaire might not It is impossible to judge person

trained, he himself might be filled up by intended
contacted is desired person as
fill up Questionnaire
person
such the 1st name of sample must
be known
Internet Interviewing
Web interviewing
Applications
Exam
CAT
Admissions
Email survey
All type of
marketing surveys
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 computer 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
Secondary Sources
(a) Orange availability statistics:
India
Brazil
i) area covered 600

Hectors
ii) volume grown
2
in million tons
iii) Growth rate 3-4%
percentage
iv) Yield tons per
3
hectare
Source: HBI/APEDA
1300
WestIndies
100
from
Tanzania
400
18
0.5
1.2
6-8%
NIL
1-2%
14
0.75
1.5
(b) Orange Producing states in India

States
i) Karnataka
ii) Maharashtra
iii) Orissa
Main districts
Curg, Hasan
Nagpur,
Amravati
Puri
Vardha,
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.
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 liter of
juice.
(d) The popular pack sizes of serving juices
i) The market price of popular pack size
(II) 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 agers
/ younger / older
vii) What price would you like to pay
for say pack size of 250 ml of
orange juice Rs. 15/-, Rs. 18/-, Rs.
20/(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)
(III)
(Source:ET/BI/BL/BT)
Ranking as per no. of

recruited by Industry sector
1) Management Consultant
2) FMCG
3) Software-IT consultancy
4) Foreign Banks
5) Financial Institutions
6) Telecom
7) Automobile
8) Consumer Durables
9) Retailing
10) Insurance
11) Pharmaceutical
12) Advertising / MR
13) Entertainment / Media
14) Diversified companies
students
7.87%
6.77%
5.66%
5.19%
4.25%
2.67%
2.51%
2.36%
2.35%
2.35%
2.35%
2.35%
2.30%
51.02%
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
Max. Marks : 70
Instructions:
(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:

(a) Consumer Panels
(b) Retail Store Audit
(c) National Readership Survey
(d) Data Collection Methods
(e) Semantic Differential Scale
(f) Rating and Ranking Scales
[14]
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
Th
disagree
ALL
(1)Location
(2)No. of branches
(3)Work timings
(4)Service-Quality
(5)Behaviour of Staff
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
+3
TML
(1)
Location
(2)
No. of branches
(3)
Work timings
(4)
Service-Quality
(5)
Behaviour
+2
Wipro
+1
IIMP
-1
-2
of
Staff
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 READERSHIP SURVEY (NRS)
-3
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 Readership

(2009)
(2008)
growth (%)
980,000
823,077
(+)30
1076,000
957,000
\(-)11
750,000
571,901
(-) 21
453,000 NA
--
Readership of National Dailies
S. No. Title
1
Dainik Jagran
2
Dainik Bhaskar
Readership
5,36,00,000
3,58,00,ooo
3
4
5
6
7
8
9
10
Eenadu
13,800,000
Lokmat
2,29,oo,ooo
AmarUjala
10,800,000
Hindustan(hindi+eng) 2,96,oo,ooo
Daily Thanthi
10,400,000
Dinakaran
9,639,000
Rajastan Patrika
9,391,000
Malayala Manorama
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 135 million
TV homes, of which 70 million are
C&S homes &8 million DTH 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. 2500/- for 10 second ad and
Rs. 1300/- for non-prime time. Similar
figures for FM are Rs. 2000/- / 1000/-.
(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 0.30
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) 45%
of
readers
have
refrigerators
(e) 38% of readers have TV sets
(f)
(g)
(h)
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)
(II)
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.
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)
(b)
(c)
(d)
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 actually counted for all the
commodities, brands stock by retailer.
The
month-end
inventory
is
subtracted from month-beginning
inventory.
The difference is the
movement of goods of the retailer
shelves.
(e)
(f)
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 30 crores consumers (USA) around 1,000
panels are required. From this formula, if we
calculate for Indian markets, total 9,000 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:
(c)
(d)
Brand purchased, Number of units

bought, Price paid, Pack size, Place of
purchase and reason for purchase.
Panels are advised to visit households on
week-end days.
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
9,000 x Rs. 50/- x 4 x 50 =
9,000,0000
(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
(ii)
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)
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 semi-automatic
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

Rank 07
Automotive
1) Tata Motors
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
11) Tata Motors
12) Mahindra & mahindra
13) Maruti Suzuki India
14) General Motors India
15) Hyundai Motor India
16) Ford India
17) DaimlerChrysler
18) Honda Siel
19) Toyota
20) BMW
1) Baja Auto
2) Hero Honda Motors
3) TVS Motor Company
4) Yamaha Motors Escorts
5) Kinetic Motor
6) Honda Motorcycle &
Scooter
7) Hero Cycles
1) Kingfisher Airlines
2) Jet Airways
3) Air India
4) Air Deccan (Deccan)
5) Indian
6) spiceJet
7) air Sahara (jtLite)
8) goAir
9) British Airways
10) Singapore Airlines
1) ICICI Bank
2) State Bank of India
3) 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)
4)
5)
6)
7)
8)
McKinsey
KPMG
Accenture
Capgemini
ACNielsen
Boston
Consulting
Group
9) Hewitt Associates
10) Deloitte
Media Research
Total money spent on Advertisement in 2009Rs23,
755cr.Media allocation is as follows:TV- 38%, News Paper 41%, Magazines -3%,
Radio 4%, Outdoor 6%, Digital 5%
Details of allocation:News Paper- 41%=Rs9832cr, of which Hindi News
paper-50%, Regional -20%, &English -30%
TV 38%=Rs8400cr, of which Hindi channels -60%,
Regional-30%, English -10%.
Most favored Hindi channels by viewers are:Starplus, color, 9 xs, Z, Sony.
Most Watched Ads based on the GRPs(April 2008-May2009) Or Maximum
Eyeballs
Brand
Description
Lux
strawberry&cream
Close Up All New
Toothpaste
Priyanka
6412
Attracts People
Faceless
girl 6050
blowing
bubles,sending
to
her
fiance,with
background
song pass aao
Grow two times 4149
faster
Complan
GRPS
Rank
1
Money
spent
Rs crore
2.56
2.42
1.66
Lifebuoy Total
Son
Takes 4080
puppy
Fairness Meter
4074
1.63
1.62
4068
1.61
3789
1.51
3780
1.50
3692
1.47
3653
10
1,46
3580
11
1.43
3379
12
1.35
3367
13
1.34
3279
14
1.31
3058
15
1.22
3022
16
1.20
Fair&Lovely
Multivitamin
Colgate
Dental Sister as Dentist
Cream
searching sadan
in
brother`s
teeth
Airtel
Cellular Shreyas
Phone Service
Talapade`s
childhood, with
punchbaba
,mai dunia ki
bheed
me
khounga nahi.
Colgate
Max Lady
Fresh Gel
Police&boy in a
car
Hero
Honda Hrithik/PriyankaMotorcycles
Dhak Dhak Go
BSNL Corporate
DeepikaHindusthan Bol
Raha Hai
Colgate
Active Lady Reporter in
Salt
Train asking Kya
Aapke
toothpaste me
namak hai------Lizol 3-in-1
Kid Playing with
Toys & Father
sleeping
on
flooring
Clinic
Plus Girl Wants to
Shampoo
Play Cricket
Garnier Light Skin Girl
with
Naturals
fairness
scale
promising
transformation
in 7 days.
Surf Excel Quick Boy collecting
Wash
Rainwater
in
bucket
Airtel-Nokia
Abhay
Deol`s
Gift to Raima
Sen
on
background
song
baburaman chal
pada
Cadburrys Dairy CricketKeneya
Milk Choc0late
kaha hai
Sun Direct Dish
Two
Men
Compare Dish
Cost
Stayfree Dry Max Girl expressing
Ultra All Night
comforts in the
morning
with
Super
Lock
Pockets.
Sunsilk Hair Fall Priyanka Fights
Solution
with Boy with
Kung foo Karate
Vodafone
Dog
follows
Customer Care
little girl
Pepsodent
School
boy
Germicheck Plus
saying to his
friend, -- job hi
khao
Sach
Batao
Clinick All Clear Bipasha-JohnSoft& silky
Basketball
Fair
&
Lovely Girl going for
Multivitamin
job interview
Source- BT, July2009
3011
17
1.195
2976
18
1.19
2974
19
1.19
2865
20
1.14
2848
21
1.13
2733
22
1.o9
2647
23
1.05
2640
24
1.049
# GRPS are calculated as follows:Per day frequency x No of days in a year of broadcasting the ad.(The ad must
be of 30 sec duration, or 3 ads of 10 sec ad to be combined as 1)OR sum of all
TRPS during one year.
CPRP-Cost per rating point.
During 08-09, the cost to generate one point awareness was Rs40, 000/
(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 unaided 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
German
car
maker( Volks wagon) to be discussed.
Illustration- Focus Group Interviews
During March 2009, Economic Times
conducted Focus Group Interviews.
It called top 100 CEOs from leading
industries& asked their action plan for
Facing global recession.
Q1. How do you view the prospects for

your business in the global marketplace?
Over the next three years?
(i)
(ii)
(iii)
(iv)
Very good --------- 27%

Good ----------------57%
Indifferent ----------12%
Poor -------------------4%
Q2. What are the top three revenue growth

strategies your company is evaluating for
delivering growth over the next three years?
Acquiring new customers
----------------------------------------- 53%
Developing new products and
services---------------------------------- 53%
Closer customer relationships
To enhance wallet share
--------------------------------47%
Entering new alliance relationships
-------------------------31%
Pursuing inorganic growth through
Mergers and acquisition
------------------------31%
Performance improvement initiatives
----------------25%
Q3. Select the top five forces that will have the
greatest impact on your business over the next
three years?
Indian Macroeconomic
Scenario--------------------------------------- 59%
Global Macroeconomic Scenario
-------------------------------------- 59%
Availability of Right skilled Talent
--------------------------- 57%
Increased Competition
----------------------49 %
Changing Regulatory Environment
------------- 41%
Rising Raw Material Costs
---------------- 37%
Rapid Growth in Emerging Markets
------------- 35%
Increasing Customer Pressure
-------------35%
For Better Products and Service
Q4. What are the top three strategic priorities
in your agenda for the next three years?
Increasing Over Revenue
--------------------------------------------- 67%
Enhance our Talent/skills Base
-----------------------------------------61%
Increasing Our Market Share
--------------------------------- 49%
Lowering Our Market Share
---------------------------- 47%
Changing Our Corporate
Organization And culture
------------------- 24%
Changing Our Business Model
------------------- 24%
Changing Our Market Positioning
And/or Customer Base
---------22%
Q5. What are the top three measures that

your organization would adopt to manage the
current uncertain global business scenario?
Neutralizing business risks by expanding
Into new markets
------------------------------------- 52%
Driving down supplier costs
------------------------------------ 52%
Integrating overlapping
systems/functions -----------------------------------52%
Divesting underperforming business
Products and services
----------------- 38%
Diversifying into new business domains
---------- 36%
Q6. What are the three greatest risks facing

your organizations over the next three years?
Inability to attract and retain talent
----------------------------------- 49%
Inability to respond to
Dynamic market conditions
------------------------------47%
Increased competitive pressure
--------------------45%
Macroeconomic and financial risk

--------------- 41%
Inflation and rising input costs
-------------33%
Failure to innovate
--------31%
--------------------------------------------------------------------------------------------------------------------
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
maximum value minimum

value
= -------------------------------------------6
=
10 1
-------- =
6
9
--- =
6
1.5
Substituting value in the formula

n=
1.96 x 1.5
------------0.5
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
Design Type
Probability
NonProbability
More Costly
Less Costly
Accuracy
Time
Acceptance of
results
Generalisability of
results
More Accurate
More Time
Universal
acceptance
Good
Less Accurate
Less Time
Reasonable
acceptance
Poor
5.8 SAMPLING TECHNIQUES

Probability Sampling
1) Each sample unit in sample
frame has equal or known
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 judgment 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 10-16
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
The Functions of a Questionnaire

Translates the research objectives
into specific questions
Standardizes those questions and
the response categories
Fosters cooperation and

motivation
Serves as permanent records of the
research
Can speed up the process of data
analysis
Can serve as the basis for
reliability and validity measures
Questionnaire Design and Drafting
Following elements in balanced 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.
Questionnaire design is a systematic

process in which the researcher
contemplates various question
formats, considers a number of factors
characterizing the survey at hand,
ultimately words the various questions
very carefully, and organizes the
questionnaires layout.
Appropriate Layout
Information Needed
(Secondary or
Primary data)
Method of data
collection, PI, TI
or Observation
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 revised questionnaire
How wording affects answers

Did you see
A broken headlight?
The broken headlight?
Sampling
technique and
methods
Words to Avoid in Questionnaire

Development
All
Always
Any
Anybody
Ever
Every
Never
Why Avoid These Words?
These words: all, any, anybody,
best, ever, every, never, etc. are all
EXTREME ABSOLUTES
They place respondents in a
situation where they must either
fully agree or they must completely
disagree with the extreme position
in the question.
Do you always observe traffic
signs?
Would you say all cats have four
legs?
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 taste 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
Multiple responses has more than two
options for the response
Advantages:
i. Allows for broad range of
possible responses
ii. Simple to administer and code
Disadvantages:
iii. Must distinguish pick one
from pick all that apply
iv. May alert respondents to
response options of which
they were unaware
Which of the following factors made
you buy 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
7
Brand B
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
.
.Inexperience
d
Modern
...Oldfashioned
(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
Extremely Important Some

Not very Not
important
what
important importan
important
at all
collaboration
(xii) Guarantee
offered
(xiii) Servicing
arrangement
(xiv) Price
(xv) Child lock
(xvi) Games
(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 disagree
Statements
Strongly
Agree
Agree
(i) Possessing TV set is

a status symbol
(ii)
Observing TV is
passing time
(iii) DDs TV programmes
are dull whereas C & Ss
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
Ideal Questionnaire
Research Problem :
To identify or study market penetration of fair and lovely.
Research Objective :
Cant say
Dis-agree Str
dis
Which is the most commonly used fairness cream in Market?
What influences people to buy particular brand?
What is the penetration level of fair and lovely in market?
To identify customer needs?
Questionnaire :
1.
Do you use any fairness cream?

o Yes
2.
o No
Which fairness cream does you most frequently use?

o Boro plus
o Garnier
o Fairever
o Vicco turmeric
o Fair and lovely
o Any other (specify)
3.
Do you use fair and lovely?

o
4.
Yes
No
You do not use fair and lovely because of

o Price
o Quality
o Packaging
o Few schemes and offers
5.
What influences to buy your preferred brands?

o Friends
o Neighbors
o Advertisements
o Self experience
6.
If fair and lovely which sub brand do you use?

o Multivitamin
o Ayurvedic
o Skin clarity
o Active sun block
7.
What influences your decision while buying fair and lovely?

o Skin protection
o Fairness
o Nourishment
o Price
8.
Have you seen any promotional campaign of fair and lovely?

o Yes
o No
If yes Which one provoked you to buy the product?

o Ad of Air hostess
o Ad of father and daughter for job
o Ad of mother and daughter (commentary)
o Ad of stage (drama) actress
o Ad of chance in a movie
o
10.
Do the various schemes associate with fair and lovely affect your purchase?
o
10.
Any other (specify) .........
Yes
No
Would you suggest any changes for fair and lovely in following field?
o Packaging sizes
o Style of packing
o Pricing
o Availability
o More schemes or offers
o Any other (specify)..........
11.
How frequently do you purchase fairness cream?

o Once a month
o Twice a month
o Once in 2 months
o
12.
Other (specify) ..........
If your preferred fairness cream is unavailable you go for 1st

choice...........
2nd choice..........
13.
Most preferred fairness cream among people you know

o Fair and lovely
o Fair ever
o Garnier
o Boroplus
o
Any other (specify)..........
o o o
Some key research areas & Questionnaire.

1) Customer Satisfaction:# I am extremely satisfied with the service I
receive from BOB.
Strongly Agree Neither Disagree Strongly
Agree
Agree
Disagree
Nor
Disagree
# How would u rate the services you receive

from BOB?
Excellent Very good Good Fair Poor
# Are u ------- with food quality of MCdonalds?
Very
Somewhat Neither Somewhat Very
Satisfied Sat
Sat
Dis-sat
dis
Nor
Sat
Dis-Sat
# How satisfied are u with CCD overall?
Rate on a 5 point scale, where 1 means not
atall satisfied & 5 means extremely satisfied.
(2) Brand-Trust
Suppose the study is being made about most
trusted mobile handset brands.
Tick mark from (a) strongly agree (b)Agree
Neither agree nor dis agree (d) Dis agree
(e)Strongly dis agree
Following attributes for your hand set.
1)Always maintains a high level of quality.
2)Is worth the price it commends.
3)Is one brand that I would definitely consider
if I have to buy that product.
4)Is going to be a popular brand for many
years.
5)Has something that no other brand has.
6)Evokes a feeling of confidence & pride
among its users.
7)It is a very special brand & has some
Unique feelings associated with it.
Samples could be from SEC A, B & C.
SCALING TECHNIQUES
7.7
ILLUSTRATIONS
(1) Construct
following
scales
of
attitude
measurement (i) Nominal (ii) Ordinal (iii) Interval (iv)
Ratio (v) Thurston
(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. territory
Following data is provided on WLL Mobile Telephone Users
city wise
City
Mobile
Telephone
Users
80000
300000
Symbol
City
Mobile
Users
Symbol
W
W
50000
180000
E
S
50000
270000
4. Delhi
250000
275000
5.
Lucknow
6.
Calcutta
60000
7. Puri
8.
Hyderabad
9.
Bangalore
10.
Chennai
11. Cochin
40000
200000
12. Punjim
50000
1. Pune
2.
Mumbai
3. Nasik
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.
1. Nagpur Vidharbha
300
7.
Solapur
2. Akola
Do
200
8.
Baramati
3. Wardha
Do
400
9. Sangli
4.
Marathwada 150
10.
Aurangabad
Pune
5. Jalna
Do
105
11.
Nasik
6. Parbhani Do
125
12.
Satara
Region
South
Maharashtra
Do
340
Do
280
Wet
500
Maharashtra
Do
380
Do
Let us regroup region wise sales and rank them

Sr.
No.
Regiona
Total sale in
Qtls. Per
day
Sales
per
day
in
Qtl.
260
Rank
400
1
2
3
4
Vidharbha
Marathwada
South
Maharashtra
West
Maharashtra
950
380
880
II
IV
III
1330
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
Nokia
Sony
Ericso
n
Motoro
la
LG
Samsu
ng
Panas
onic
Philips
Sieme
ns
Mitsub
hishi
Lig
ht
wei
ght
Pri
ce
Desi
gn /
style
High
techn
ology
Batt
ery
life
Dura Reliab Voic Cari Tot

bility
ility
e
ng
al
qual com sco
ity pany re
in
%
99
%
99
%
97
%
93
%
82
%
80
%
68
%
66
%
30
%
Alcatel
13
%
5%
TCL
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
Like
Neither like
Dislike
Dislike the
most
P D M
D M
nor Dislike
P D M
D M
most
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
Quantity
sold in
one year
230
Price
/each in
Rs.
46000
205
45000
Total
sale Rs.
Commission
earned per
vertical
10580000
4000
9525000
Total
profit Rs.
4500
Conclusions:
(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.
920000
922500
(v) Thurston scale: This is eleven point scale to

express varying degree of attitude from unfavorable
to favorable.
B
A
F
C
Unfavorable
K
G
Neutral
J
Favorable
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)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
All these Saas-Bahu serials build up negative

value system by depicting disputes in the
family.
All Saas-Bahu serials portray an irrational
depiction of characters.
Telecast time of Saa-Bahu serials clashes with
important programmes like News, etc.
All Saas-Bahu serials are monotonous.
Most of the Saas-Bahu serials are complete
waste of time.
I have no positive or negative feelings about
Saas-Bahu serials,
Saas-Bahu serials provide good entertainment
after a hard days work.
Most of the key characters of Saas Bahu
serials become trend setters in respect to
clothings, jewelry and other accessories.
(i)
(j)
(k)
Most of the Saas Bahu serials bring the whole

family together
Saas-Bahu serials help to understand, analyse
and solve the domestic crisis.
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)
Construct Likert Scale, Perceptual Map and Semantic Differential
Scale
(i)
Likert Scale to study consumer satisfaction with tyre-brands
Score out +2
of
Attributes
Strongly
Agree
+1
Agree
Neither
Disagree
agree nor
Disagree
Cost
friendly
Grip
Wear
&
tear
Rubber
quality
longevity
Brand
MRF
JK
Sign
Score
2+2+2+2+2 = 10
2+1+2+1+2=8
-1
-2
Strongly
disagree
Apollo
2+1+0+0+0=3
(ii)
Semantic differential scale to understand the images in the mind of
consumers for washing machine manufacturers
Remark
Excelle
nt
Score
+3
Attributes W
Progressiv
e
Reliable
Bette Goo
r
d
Averag
e
Poo
r
+2
V
-1
+1
LG
Mor Wors
e
t
poor
Attributes
Tradition
al
Unreliabl
e
Weak
Non
custfocused
Non
response
Strong
Custfocused
Responsiv
e
Brand
Sign
Whirlpool W
Score
+3+2+2+3+2 = 12
Videoon
+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
Reliability
Tangibility
RIM
BHARATI
TATA
+3
+3
-2
+2
+2
-3
Responsivenes
s
+1
+2
0
Assurance Empathy
+1
+3
+1
+1
+3
+1
Solution :
+3
+2
+1
Reliability
Tangibility
Responsivenes
s
Assurance
Empathy
Brand
RIM
Sign
BA
Score
+3+2+1+1+2 = 9
-1
-2
-3
Bharati BH
+3+2+2+3+3=13
Tata
-2-3+0+1+1=-3
TA
Construct
Semantic
Differential
scale
Management Institutes (Leading) in India
Attributes Excell
ent
+3
Bett Go
er
od
Avera Po
ge
or
+2
+1
-1
for
Ver Wor
y
st
po
or
-2 -3
Reputatio
n
Success
of
placemen
t
Quality of
Placemen
t
Infrastruc
ture
Faculty
Teaching
Methodol
ogy
Special
Units
Admissio
n
eligibility
2)
Reputation: High rank, tie up with foreign

Universities / Instt., admission tests are
3)
4)
5)
6)
7)
8)
9)
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
Scores for Leading Management Institutions:

IIM
ISB
ICFAI
SYMBI
INDIRA
(iv)
=
=
=
=
+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
Perceptional Map
Following data is given on Indian Refrigerator Industry (Size 165 lit. to

180 lit.)
Brand
BPL
Godrej
Kelvinator
Samsung
Technology
Direct cool
Do
Do
Do
Price :Rs.
9290
8000
9990
8490
Whirlpool
LG
Electrolux
Videocon
Allwyn
Voltas
Daewoo
Do
Do
Frost free
Direct cool
Do
Do
Frost free
9100
9000
11000
8890
8290
8110
10500
Prepare Perceptual map.
Solution: Construction of Perceptual Map

High price (Rs.)
12000
11500
11000
10500 #
Direct cool
Whirlpool
Kelvinator
BPL
Samsung
Alwyn
9500
LG
Frost free
9000
8500
Voltas
Gordrej
8000
Low Price
LAST CHAPTER APPLICATIONS OF

MARKETING RESEARCH
I.
PRODUCT RESEARCH
Product
research Marketing research
areas
techniques
(1) Formulating new Regression
product
Technique,
Benefit
Analysis
(2)
Product Line Perceptual Map
Extension / Brand
Extension
(3) Test Marketing Experimental
of new product
research design
(4) Re-launching of Qualitative Research
declining product
or
Perceptual
mapping
New Product Research
New products development is critical to the life of most organizations as they
adapt to their changing environment. Since, by definition, new products
contain unfamiliar aspects for the organization, there will be uncertainty
associated with them. Thus, it is not surprising that a large proportion of
marketing research is for the purpose of reducing the uncertainty associated
with new products.
New-product research can be divided into four stages, as shown in Figure 1.
The first stage is generating new-product concepts; the second is evaluating
and developing those concepts; the third is evaluating and developing the
actual products; finally, the product is tested in a marketing program.
Concept Generation
There are two types of concept generation research. The first might be
termed need identification research. The emphasis in need research is on
identifying unfilled needs in the market. The second is termed concept
identification. Here, an effort is made to determine concepts that might fill an
identified need.
Need Identification. Marketing research can identify needs in various ways.
Some are qualitative and others, such as segmentation studies, can be
quantitative. Following are some examples:
Perceptual maps, in which products are positioned along the

dimensions by which users perceive and evaluate, can suggest
gaps into which new products might fit. Multidimensional scaling
typically is used to generate these perceptual maps.
Social and environmental trends can be analyzed. For instance, a

trend away from low-calorie foods was the reason that Pizza Hut
introduced the Big Foot Pizza and McDonald's reintroduced the
Quarter pounder.
An approach termed benefit structure analysis has product users
identify the benefits desired and the extent to which the product
delivers those benefits, for specific applications. The result is an
identification of benefits sought that current products do not deliver.
Product users might be asked to keep a diary of a relevant portion
of their activities. Analyzing such diaries can provide an
understanding of unsolved problems associated with a particular
task.
In focus-group interviews, product users might discuss problems
associated with product-use situations. Thus, office managers
might, for example, discuss problems they have experienced with
shipping services.
Lead user analysis is another approach that many companies now
use more often. In this approach, instead of just asking users what
they have done, their solutions are collected more formally. First,
lead users are identified. Lead users are those who face needs
early that later will be general in a marketplace; they are positioned
to benefit significantly by solving problems associated with these
needs. Once a lead user is identified, the concepts that company
or person generates are tested.
The advertising agency JWT, which relies heavily on "problem detection" to

generate new-product concepts and ideas for advertising campaigns, has
developed a procedure for rating problems? The agency asks each
respondent who is a potential prospect to rank each problem as to whether it
Is important.
Occurs frequently.
Has a solution.
A "problem score" is obtained byConcept

combining
these ratings, and the score is
Generation
used to screen ideas. Using this technique,
8800 found that buyers of a dog
Need identification
food felt that it
Concept identification
Smelled bad.
Cost too much.
Concept Evaluation and
Development
Did not come in different sizes
for different dogs.
Subsequently, the company developed products that were responsive to the

criticisms.
Product Evaluation and
Figure: Phases in new-product
Development research
Testing the Marketing

Program
Concept Identification. There are various ways to identify concepts. Some

are neither user-based nor follow from identification of unfilled needs. For
example, a technological breakthrough can suggest concepts, as when the
freeze-dry process suggested freeze-dried fruit in cereal; or competitors may
introduce a new product that represents either a threat to or an opportunity
for an organization. One role of marketing research is to monitor the
environment systematically to learn of technological or competitive
developments that may suggest new concepts.
During the new-product development process there is usually a point where a
concept is formed but there is no tangible usable product that can be tested.
The concept should be defined well enough so that it is communicable. There
may be simply a verbal description, or there may be a rough idea for a name,
a package, or an advertising approach. The role of marketing research at this
stage is to determine if the concept warrants further development and to
provide guidance on how it might be improved and refined. Conjoint analysis
typically is used to obtain an ideal combination of the concept's various
features. Thus, research questions might include
Are there any major flaws in the concept?

What consumer segments might be attracted to it?
Is there enough interest to warrant developing it further?
How might it be altered or developed further?
Normally, the concept is exposed through personal contact, either in the

respondents home, office or plant or in some central location such as a
shopping center. Normally, respondents should include those who would be
among the target segments. Since the goal of concept testing is to
determine if a viable market exists, the researcher should be careful to avoid
omitting a potential segment from the study.
Usually, the concept test explores several versions of a concept or several
product concepts that respond to a user need. For example, in the mid-
1960s, in response to an identified need for a household garbage disposal

system, Whirlpool engineers tested four concepts: a disposable garbage can,
a garbage compactor that would hold two weeks worth o garbage, a built-in
kitchen compactor and a portable kitchen compactor. The concept test
showed the last two alternatives to be definitely superior.
For the evaluative aspects of concept testing, it is necessary to include some
overall indication of attitudes, interest and likelihood of purchase. The
purchase likelihood, for example, cold be scaled as
Definitely
Buy
Probably
Buy
Might or Might
Not Buy
Probably
Not Buy
Definitely
Not Buy
Researchers must interpret the results cautiously, particularly when they are
encouraging, since the exposure, even if presented in a relatively neutral
way, will sensitize the respondent to the product. The result actually is then
an exaggerated tendency to indicate that the respondent will buy the product.
Concept testing is particularly important for durable goods and many
industrial products, because they rarely employ testing r test markets. The
Ford Taurus, Mitsubishi large-screen TV sets or the Sony Camcorder were
never in test markets, for example. The problem is that it really is not
practical to develop or produce such equipment on a pilot basis. A major
commitment is required and it would not be realistic economically to withdraw
the product after market-testing it.
Product Evaluation and Development
Product evaluation and development, or product testing, is very similar to
testing, in terms of both the objectives and techniques. The aim is still to
predict market response to determine whether or not the product should
carried forward.
Use Testing. The simplest form of use testing gives users the product, and
after a reasonable amount of time, asks their reactions to it, including their
intentions to buy it. Researchers can contact respondents in shopping
centers, by personal visits to their homes or offices, or, initially, by telephone.
Burlington Industries, producer of fabrics, calls randomly selected telephone
numbers to locate adult women who make many of their own clothes and
who would be willing to evaluate a new dress fabric. The fabric then is sent
by mail, and a second telephone interview two months later solicits their
description of their experience with it. Now market researchers can use the
latest in computer technology and can do virtual product testing, which is
explained in Marketing Research in Business 1. IA and Visionary Shopper
are product-oriented techniques that do not take account of the fact that it is
difficult to evaluate a service until it is consumed. Thus, when testing
services, another virtual reality model, SERVASSOR, is more appropriate.
Several problems are associated with use tests. First, because of unclear
instructions, a misunderstanding, or lack of cooperation, respondents may
not use the product correctly and may therefore report a negative opinion. Or
they may not use it at all and simply fabricate an opinion. Second, the fact
that they were given a free sample and are participating in a test may distort
their impressions. Third, even when repurchase opportunities are made
available, such decisions may be quite different than when they are made in
a more realistic store situation with special displays presenting the new brand
and those of its competitors. Fourth, there is the issue of whether the users
will accept the product over a long time period. This problem is especially
acute when repurchase data cannot be or Ire not obtained. Finally, they may
inflate their intention to buy. Consumers may say that they will buy the
product but may end up not doing so.
VIRTUAL TESTING
MarketWare Corp. believes it has captured real marketing research on
consumer behaviour in its new software, Visionary Shopper. The suburban
Atlanta-based firm, already a leader in pegboard-display product space
management software with its Pegman product, now is trying to take its
technology into the rest of the store with its new virtual reality-based
software. The system which runs on PCS, allows consumers to stroll through
store aisles on a computer screen, allowing examination of packages as
though the shelf was really in front of them.
MarketWare
(www.mktware.com) believes a multitude of marketing variables can be
measured in impact through the process, which for most brands and
categories runs about 30 minutes per consumers.
Most significantly, though, according to MarketWares Stephen Needel, who
directs the firms simulation efforts, it feels like fun: for the consumer. We
can extend the time we have them in there doing the testing because of the
appeal of the three-dimensional presentation and real-shelf look. Consumers
can actually remove products easily from a shelf, examine labels, study
prices and other product options, and react to shelf-layout changes or
promotional and pricing considerations all without setting foot in a store.
And for consumers sensitized to batteries of direct marketing and marketing
research mail and phone calls, the system is a pleasant break, because its
not survey work, said Needel. Its virtual reality.
Predicting Trial Purchase. Several models have been developed to predict
trial levels of new, frequently purchased consumer products. The model
called ESP (estimating sales potential) is typical. Data from 45 new-product
introductions were obtained and used to estimate the model. Trial levels (the
percentage of a sample of consumers who had purchased the product at
least once within 12 months after launch) were predicted on the basis of
three variables:
Product class penetration (PCP)-the percentage of households

purchasing at least one item in the product class within one year.
Promotional expenditures-total consumer-directed promotional

expenditures on the product
Distribution of the product-percentage of stores stocking the
product (weighted by the store's total sales volume)
Knowledge of these three variables enabled ESP to predict trial levels of the
new products extremely accurately. (The regression model explained 95
percent of the variance of the three variables.) Once the model is estimated,
it can be applied to other new products. The manager simply estimates the
percentage of households using the product class, the total promotional
expenditures planned for the new product, and .the expected distribution
level. The model will then estimate the trial level that will be obtained.
Trial also can be estimated directly using controlled shopping experience. A
respondent is exposed to the new product promotion and allowed to shop in
a simulated store or in an actual store in which the product is placed. The
respondents then have an opportunity to make a "trial" or first purchase of
the product.
Table 1 : The Assessor Laboratory Test Market Research Design and
Measurement
Design
O1
O2
X1
(O3 )
X2
O4
X3
O5
Procedure
Respondent
screening
and
recruitment (personal interview).
Premeasurement for established
brands
(self-administered
questionnaire)
Exposure
to
advertising
for
established brands and new brand
Measurement of reactions to the
advertising
materials
(selfadministered questionnaire)
Simulated shopping frip and
exposure to display of new and
established brands
Purchase
opportunity
(choice
recorded by research personnel)
Home use / consumption of new
brand.
Postusage
measurement
(telephone interview)
O = measurement; X = advertising or product exposure
Measurement
Criteria for target group identification
(e.g. product class usage)
Composition of relevant set of
established brands, attribute weights
and ratings and preference
Optional,
(e.g.
likability
and
believability ratings of advertising
materials)
Brand(s) purchased
New brand usage rate, satisfaction

ratings,
and
repeat
purchase
propensity.
Attribute ratings and
preferences for relevant set of
established brands plus the new
brand.
Source: Adopted from Alivn, J. Silk and Glen L. Urban, Pre-Test-Market Evaluation of New
packaged Goods: A Model an Measurement Methodology, Journal of Marketing Research,
15, may 1978, p. 178.
Pretest Marketing. Table 1 is an overview of a laboratory test design (a form

of pretest marketing) called ASSESSOR.12 Two approaches are used to
predict the new brand's market share. The first is based on the preference
judgments. The preference data are used to predict the proportion of
purchases of the new brand that respondents will make given that the new
brand is in their response set. These estimates for the respondents in the
study are coupled with an estimate of the proportion of all people who will
have the new brand in their response set, to provide an estimate of market
share. A useful by-product of this approach is an analysis of the concomitant
market share losses of the other brands. If the firm has other brands in the
market, such information can be critical.
The second approach involves estimating trial and repeat purchase levels
based on the respondent's purchase decisions and intentions-to-buy
judgments. A trial estimate is based on the percentage of respondents who
purchase the product in the laboratory, plus an estimate of the product's
distribution, advertising (which will create product awareness), and the
number of free samples to be given away. The repeat-purchase rate is based
on the proportion of respondents who make a mail-order repurchase of the
new brand and the buying-intentions judgments of those who elected not to
make a mail-order repurchase. The product of the trial estimate and the
repeat purchase estimate become a second estimate of market share.
ASSESSOR has been modified and other models have also been proposed
for pretest marketing.
Test Marketing
Test marketing allows the researcher to test the impact of the total marketing
program, with all its interdependencies, in a market context as opposed to
the artificial context associated with the concept and product tests that have
been discussed.
Test marketing has two primary functions. The first is to gain information and
experience with the marketing program before making a total commitment to
it. The second is to predict the program's outcome when it is applied to the
total market.
There are really two types of test markets: the sell-in test market and the
controlled-distribution scanner market. Sell-in test markets are cities in which
the product is sold just as it would be in a national launch. In particular, the
product has to gain distribution space. Controlled-distribution scanner
markets are cities for which distribution is prearranged and the purchases of
a panel of customers are monitored using scanner data.
Sell-In Test Markets

Selecting the test cities
1.
2.
3.
4.
Representativeness. Ideally, the city should be fairly representative of

the country in terms of characteristics that will affect the test outcome,
such as product usage, attitudes, and demographics.
Data availability. It often is helpful to use store audit information to
evaluate the test. If so, it would be important to use cities containing
retailers who will cooperate with store audits.
Media isolation and costs. It is desirable to avoid media spill-over.
Using media that "spill out" into nearby cities is wasteful and increases
costs. Conversely, "spill-in" media from nearby cities can contaminate
a test. Media cost is another consideration.
Product flow. It may be desirable to use cities that don't have much
"product spillage" outside the area.
An important issue for sell-in test markets is the number of test cities to use.
A single test city can lead to unreliable results because of the variation
across cities of both brand sales and consumer response to marketing
programmes.
Implementing and controlling the test
A second consideration is to control the test by ensuring that the marketing
program is implemented in the test area so as to reflect the national program.
The test itself may tend to encourage those involved to enhance the
effectiveness of the marketing program. Salespeople may be more
aggressive. Retailers may be more cooperative. There is also the reaction of
competitors. At one extreme they can destroy the test by deliberately flooding
the test areas with free samples or in-store promotions. More likely, however,
they will experiment with retaliatory actions and also monitor the results
themselves.
Timing
A third consideration is timing. If possible, a test market normally should be in
existence for one year. An extended time period is needed for several
reasons. First, there are often important seasonal factors that can be
observed only if the test is continued for the whole year. Second, initial
interest is often a poor predictor of a program's staying power. There is
usually a fatigue factor that sometimes can take a long time to materialize.
Measurement
A crucial element of the test market is the measure used to evaluate it. A
basic measure is sales based on shipments or warehouse withdrawals. Store
audit data provide actual sales figures and are not sensitive to inventory
fluctuations. They also provide variables such as distribution, shelf facings,
and in-store promotional activity. Knowledge of such variables can be
important in evaluating the marketing program and in interpreting the sales
data.
Measures such as brand awareness, attitude, trial purchase, and repeat
purchase are obtained directly from the consumer, either from surveys or
from consumer panels. Such variables as brand awareness and attitude also
serve as criteria for evaluating the marketing program and can help interpret
sales data. The most useful information obtained from consumers, however,
is whether they bought the product at least once, whether they were satisfied
with it, and whether they repurchased it or plan to.
Costs of test marketing
In making cost-benefit judgments about test markets, all costs need to be
considered. Many costs are relatively easy to quantify; these might be the
development and implementation of the marketing program, preparation of
test products, administration of the test, and collection of data associated
with the test.
The costs and risks that may delay the launch of a new product are more
difficult to quantify. If a new-product launch is delayed by six months or a
year, an opportunity to gain a substantial market position might be lost.
Controlled-Distribution Scanner Markets (CDSMs). These markets are
termed controlled-distribution because there are generally agreements with
retailers to allow new products under test to have access to shelf space. An
example of a CDSM is lRI's BehaviorScan.
CDSMs have four major advantages over test markets. First, they are less
expensive. Although it is difficult to generalize, they probably cost from onesixth to one-third the cost of a full test market. Second, there is the potential
to do more experimenting with marketing variables in a CDSM. The
advertising seen by panel members is controllable. Further, in-store activities
such as promotions and pricing are under more control than they would be in
a sell-in test market. Third, the scanner-based data probably are more
accurate, timely, and complete than the data available in a sell-in test market.
.Fourth, there is the potential to provide accurate early estimates of the test
market results using the consumer panel information.
The most obvious disadvantage of a CDSM is that it provides no test of the
product's ability to gain shelf space, special displays, in-store promotions,
and so on. However, recent research on the effectiveness of sales
promotions has generated useful information for making efficient decisions.
Since gaining distribution can be a crucial issue for some products, leaving it
unaddressed can be troublesome. Another major CDSM disadvantage is the
limited choice of test cities.
Projecting trial, repeat, and usage rates using panel data

To estimate the ultimate trial level, the percentage of product class buyers
who will try the new brand at least once is monitored over time. Each person
who tries the new product is then monitored again, and the time between the
first (trial) purchase and second purchase is noted. The market share
estimate is thus the product of the percentage of people who tried and the
percentage of people who repeat-purchased the product. Market share and
sales projections made using this modeling logic can be very accurate.
Marketing Research in Business gives an example of test marketing.
CASE STUDY EXAMPLES

(a)
(b)
(c)
(d)
Apartment on wheels
Makeup room on wheels
Hotel apartment
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
PRICING RESEARCH
Research may be used to evaluate alternative price approaches for new
products before launch or for proposed changes in products already on the
market. As in the of test marketing, the question of "reality" applies, and it has
been found that the sales response to products at different prices in actual
stores produces Ire discriminating results than the sales response in an
artificial store.
There are two general approaches to pricing research. The first is the wellestablished Gabor and Grainger method. In this method, different prices for a
product are presented to respondents (often by using test-priced packs), who
then asked if they would buy. A "buy-response" curve of different prices, with
the corresponding number of affirmative purchase intentions, is produced.
In a second approach, respondents are shown different sets of brands in the
same product category, at different prices, and are asked which they would
buy. This multi-brand-choice method allows respondents to take into account
competitors' brands, as they normally would outside such a test. As such, this
unique represents a form of simulation of the point of sale.
Decisions regarding price ranges for new products have to be made early in
the development stage. A product concept cannot be tested fully, for
example, without indicating its price, so when the product is ready to be
introduced, a decision must be made about its specific price. Decisions on
price changes-Should we change the price, and, if so, in which way and by
how much? will then need to be made over the product's life cycle.
Either of two general pricing strategies can be followed. The first is a
skimming strategy, in which the objective is to generate as much profit as
possible in the present period. The other is a share-penetration strategy,
whose objective is to capture an increasingly larger market share by offering
a lower price. Pricing research for the two different approaches differs
substantially in terms of the information sought.
Research for Skimming Pricing
The skimming pricing strategy is based on the concept of pricing the product
at the point at which profits will be the greatest until market conditions
change or supply costs dictate a price change. Under this strategy, the
optimal price is the one that results in the greatest positive difference
between total revenues and total costs. This implies that the researcher's
major tasks are to forecast the costs and the revenues over the relevant
range of alternative prices.
Research for Penetration Pricing
Penetration pricing is a strategy based on the concept that average unit
production costs continue to go down as cumulative output increases.
Potential profits in the early stages of the product life cycle are sacrificed in
the expectation that higher volumes in later periods will generate sufficiently
greater profits to result in overall profit for the product over its life. For some
products, this reduction takes the form of an experience curve.
Unit costs and prices
Figure 2: Share-oriented penetration
Rs. 100,000
Rs. 10,000
Price
Constant
Rs. 1,000pattern that is adopted for increasing market share
The pricing
is to:
Unit cost
markup
1.
2.
3.
percentage
Offer
a lower price (even below cost) when entering the market.
Rs.100
Hold that price constant until unit costs produce a desired percentage
markup.1
100
10,000
1,000,00
Reduce price as costs fall to maintain markup at the same desired
percentage of costs. Cumulative output in units
The pricing pattern is illustrated in Figure 2.

The types of information required for this pricing method are
1.
2.
3.
4.
The nature of the experience curve.

Breakeven points.
Cost of units sold to additional market segments.
Competitor costs.
5.
Forecast of the "decline" stage of the product life cycle.

Table 2: Informational Requirements for Pricing Strategies
Strategy
Random
discounting
Description
Information
Sources of
Requirements
information
If some consumers have Knowledge of consumer Demographic
heterogeneous
search segments in the market.
consumer data
costs, firms, discount their
Characteristics
of Analysis of scanner
prices in a random manner
consumers (their search data
to take advantage of those
costs, etc.)
Internal records
consumers.
These
and
cost
consumers buy at the Product
Legal data
undiscounted price instead information
of searching for the lowest Information
on
legal
price, whereas consumers constraints
with low search costs will
buy at the low price.
Strategy
Second-market
discounting
Description
Information
Sources of
Requirements
information
If distinct markets exist and Knowledge about the Internal records
if the consumers in one different markets and
Legal data
market incur transaction their characteristics
Secondary
data
costs to buy in another, the
Product
and
cost
sources that give the
firm can discount its price in
information.
demographic profile
the other markets to below
its average cost.
In the Information on the legal of the markets
international context this is aspects of the other
markets.
called dumping.
Information on the legal
transaction cost incurred
by the consumer when
he or she buys from the
different market
Periodic
discounting
Price signaling
When some consumers in

the market have differential
reservation prices, firms can
start at high prices and
periodically discount them in
order to draw consumers
with lower reservation prices
Information
consumers
prices
about the Internal records

reservation
Survey research to
determine
the
Product
and
cost consumers
information
reservation price
When consumers in the

market are willing to pay
more for a product despite
lack of knowledge regarding
its
quality, then
price
signaling can be used.
Essentially the strategy is to
produce on inferior product
and sell it at the same price
as the better quality product
another firm produces, in the
belief that consumers will
assume that the product is
of high quality and buy it
because of its high price
Information about your Internal records

competitors prices and
Secondary data on
costs
competitor prices
Information about the
Legal data
legal constraints of price
Inferential information
signaling
on competitor costs
Product
and
cost
information
Legal data
Strategy
Penetration
pricing
Geographic
pricing
Premium
pricing
Price bundling
Description
Information
Sources of
Requirements
information
Penetration pricing is used Product
and
cost Secondary data and
in situations similar to that in information
inferential information
periodic discounting, except
on competitor prices
Information
about
in this case competitors are
and costs
competitor
prices
and
also free to enter of the
costs
Internal records
same price.
Hence, the
threat of competitive entry
and
price-sensitive
consumers force the firm to
price its products at a low
price.
Geographic
pricing Information
on
the Internal records
strategies are used by firms characteristics
of
the
Secondary data and
that sell in markets that are different markets
inferential information
separated
geographically.
Product
and
cost on competitor prices
The difference in pricing is
information
and costs
due to transportation costs
on
the
rather
than
reservation Information
transportation costs and
prices or transaction costs.
about any legal aspects
that may hinder this
particular type of pricing
strategy
This strategy and price
signaling are very similar.
The difference stems from
the fact that in price
signaling the firm produces
only the inferior product and
prices it high, whereas here
the firm produces both the
inferior and the better
product and sells them at
the same price to exploit the
joint economies or scale.
Bundling strategy is adopted
when the products are no
substitutable,
perishable,
and there is an asymmetric
demand structure for them.
An example of this strategy
is selling a car with the
maximum
number
of
options. The perishability in
the case of durables is with
regard to the purchase
occasion.
Product
information
and
cost Secondary sources of

legal data
Information
on
the Internal records
competitors price and cost
Secondary sources of
Information
on
the information
on
characteristics
of
the markets
and
consumers
(like
the transportation costs
maximum price they are
willing to pay for this
product)
Information on the demand Internal records
characteristics
for
the
Survey
data
on
various components of the
consumer
bundle
characteristics
and
Product
and
cost preferences
information
Secondary sources of
Information
on
the information
on
consumer preferences for competitor costs and
the various combinations prices
of the bundle
Strategy
Complementar
y pricing
Description
Information
Sources of
Requirements
information
Complementary pricing is Product
and
cost Internal records
the strategy used by firms to information
price
complementary
products. They usually price
the main product at low
price while the price of the
complement is high. The
classic example is Japanese
pricing of their cars and the
spare parts.
Price research is done in following two

situations
(B) When competitors product is
available for comparison of
the price.
Coca cola, though started
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 Distribution 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?
a)
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
1970-80. It became Rs.20 by 1995 and then to
Rs. 50 by 2005 for single screen cinema.
Given below production + marketing cost for a
movie, decade-wise, as well as the revenue per
territory for different viewerships.
b)
c)
(1)
Sr.
No.
Production +Marketing cost for a movie

decade wise
Decade
60-70
70-80
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
80-90
20012008
(2)
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:
Sr. Decade
No.
1
2
3
4
5
(3)
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
Balcony Movie
ticket
cost
Revenue
(all
India)
Movie stays for
50
100
175
days
days
days
60-70
Rs. 1.50 Rs. 0.50 0.48
0.65
0.80
Cr.
70-80
Rs. 2.00 Rs.0.75 0.74
0.90
1.10
Cr.
80-90
Rs. 5.00 Rs.1.25 1.25
1.50
1.75
Cr.
90-2000
Rs.20.0 Rs.2.0
2.05
2.35
2.60
Cr.
2000-2008 Rs.50.0 Rs.10.0 100.0
170.0
250.0
Cr
Comparison of Revenues before and after 1992
50%
viewership
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
90%
viewership
d)
0.070
0.60
Bollywood
invented
distribution, since 1992
new
0.15
channels
0.75
of
Year Invention
1992 Music right
1995 Export
Rights
1997 DVD
Satellite
e)
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 10 Cr.
& Kaho Na Pyar Hai 2 Cr., KaranArjun 0.50 cr., Krish & Koi Mil Gaya
12 Cr., Murder 20 Lakhs
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
Jannat
5 cr.
All India Revenue in one week

Single
Multiplex
Total
screen
cinema
14 cr.
2 cr.
16
Remark
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
Appeal in Indian Advertising
Changing Role of Women- From confident women (Lalita) to Glamour
Girl (Lolita)
Indian advertisement has witnessed a significant transformation in the
manner in which women are portrayed. Earlier, advertisers were
charged with depicting women in a stereotypical way; but now there is
a considerable positive change. Many contemporary advertisements
portray women as independent, assertive, enjoying life, & serious about
their careers.
Decision Area
MR Technique used
Decide Appeal
Decide on ad-slogan
Decide on media
Qualitative Research
Concept testing, Opinion poll
Observations, PI, and Experiments.
ILLUSTRATIONS
1) Hero Honda Pleasure------- Print & Audio visual
Ad slogan- Why should boys have all the fun?
Why to sit on back-seat?
Audio-visual- Faceless girl, individual or double seat, with helmet,
driving the scooter& enjoying the life.
PrintGirl with modern dress with spread arms, in front of yellow bike,
expressing thrill of driving.
Recently Priyanka Chopra has been endorsing the brand with Punjabidialog.
2) Asmi Diamond Jewelry------ Print & Audio visual
Ad sloganI believe in me
Baseline- For the women of sprit
Print---- An antique looking background is used as a photo frame to
signify the time-less ness that diamond represents.
3) ICICI Prudential Life----- Print & Audio visual
Ad slogan- Jeetey Raho
Most of Insurance marketers depict negativity like death while selling
policy. ICICI this ad has effectively changed this perception on a very
happy note. Moreover, in Indian tradition, the sindur, that is shown in
the ad, symbolizes protection& the slogan jeetey raho is an established
blessings for longevity. Thus it conveys idea behind taking life
insurance, which is to facilitate a peaceful life without any worries
regarding the future.The ad also portrays woman as decision maker in
financial planning.
4) Sania Mirza as a glamour girl endorsing many products.
a)Tata Tea PremiumChanging with the times
b) Getz- Prime drive global
c) Yosmart Scooterate
d) TVS Scooty-streakTough- Trendy
e) Sprite
5) Indica V2 XetaTwo Glamorous looking modern girls asking lift to
male, who is driving xeta
6) Pizza Hut- A young girl, with very modern dress trying to hold skirt
which is going up due to wind
7) Women in advertisement for Mens toiletries
a) Axe deodorant- Women in bra & panties running after a man
8) Nakshatra Jewellery- Ashawrya Rai- Baccan
b) Wild Stone- A married woman dreaming sex with someone else,
who come across with her while retuning after worshiping god.
-----------------------------------------------------------
Brand Equity Research

Brand equity is defined as a set of assets and liabilities linked to a brand
that add to or subtract from the value of a product or service to a company
and / or its customers. The assts or liabilities that underlie brand equity must
be linked t the name and / or symbol of the brand. The assets and liabilities
on which brand equity is based will differ from context to context. However,
they can be usefully grouped into five categories:
1.
2.
3.
4.
5.
Brand loyalty
Name awareness
Perceived quality
Brand associations in addition to perceived quality
Other proprietary brand assets: patents, trademarks,
channel relationships, etc.
The concept of brand equity is summarized in Figure which shows the five
categories of assets that are the basis of brand equity. The figure also shows
that brand equity creates value for both the customer and the firm.
Research questions under Brand Equity
An appraisal of the brand based on the five dimensions involves addressing
and obtaining answers to the questions that follow. Marketing research can
help to provide answers to these questions.
Brand loyalty. What are the brand-loyalty levels, by segment? Are customers
satisfied? What do exit interviews suggest? Why are customers leaving?
What is causing dissatisfaction? What do customers say are their problems
with buying or using the brand? What are the market share and sales
trends?
Awareness. How valuable an asset is brand awareness in this market?
What is the companys brand awareness level as compared to that of
competitors? What are the trends? Is the brand being considered? Is brand
awareness a problem? What can be done to improve brand awareness?
Perceived quality. What drives perceived quality? What is important to the
customer? What signal quality? Is perceived quality valued or is the
market moving toward a commodity business? Are prices and margins
eroding? If so, can the movement be slowed or reversed? How do
competitors stack up with respect to perceived quality? Are there any
changes? In blind-use tests, what is our brand name worth? Has it changed
over time?
Brand associations. What mental image, if any does the brand stimulate? Is
that image a competitive advantage? Does it have a slogan or symbol that is
a differentiating asset? How are the brand and its competitors positioned?
Evaluate each position with respect to its value or relevance to customers
and how protected or vulnerable it is to competitors.
Other brand assets. Are sustainable competitive advantages attached to the

brand name that are not reflected in the other four equity dimensions? Is
there a patent or trademark that is important?
Are there channel
relationships that provide barriers to competitors?
Figure 1: Brand Equity

Provides value to Customer by
enhancing customers:
Brand Loyalty
Name Awareness
Perceived Quality
BRAND EQUITY
Name
Symbol
Brand
Associations
Other Proprietary
Brand Assets
interpretation / processing of
information
confidence in the Purchase
Decision
use Satisfaction
Provides Value to firm by

enhancing:
Efficiency and effectiveness of
Marketing Programmes
Brand Loyalty
Prices / Margins
Brand Extensions
Trade Leverage
Competitive Advantage
Customer Satisfaction Measurement Process

It is believed that 96 percent of dissatisfied customers never complain; 60 to
90 percent of these silent dissatisfied customers will no buy from you again;
90 percent of those who do complain will not buy from you again. Therefore,
it is important that every firm should have a customer satisfaction
programme. A no frills customer satisfaction programme involves the
following.
Define Goals and How Information will be used. A common failure of
customer satisfaction research is lack of clear, comprehensive and
measurable goals. Given the strategic nature of the quality improvement

process, key parts of a company must be involved in setting objectives for
customer satisfaction measurement and management. This helps to clarify
the needs of various users of the information, creates a sense of ownership
of the process, and identifies how various levels of a company may have to
cooperate to plan action.
Equally important is determining how the information will be used once it is
developed.
Careful analysis of strategic and tactical organizational
applications will ensure that issues of design, sample, analysis, reporting and
deployment are structured to provide customer-focused information hat can
be acted on most effectively.
Discover What Is Important to Customers and Employees.
This
discovery phase of data collection is intended to identify, in customers and
employees own language, the attributes that compose their perceptions and
expectations for quality and satisfaction. This information is gathered through
various qualitative techniques, notably, depth interviews with senior
managers and focus groups or on-site interviews with customers and
customer-contact personnel.
The research will generate a comprehensive list of everything that customers
and employees consider important. It is now necessary to use similar
associative for subsequent measurement as key drivers of satisfaction.
Measure Critical Needs.
Measuring the relative importance of the
attributes identified in qualitative discovery and a companys competitive
performance on those attributes is accomplished through critical-needs
assessment.
This phase uses in-depth telephone, mail, or personal
interviews with a representative sample of customers, lost customers and
competitors customers to gather quantitative information. Using trade-off
techniques, instead of traditional importance scaling, provides improved
discrimination on the relative importance of attributes.
This phase should provide a broad array of actionable information. It should
include the relative importance of key drivers of satisfaction; competitive
performance on these critical attributes; site-specific performance, depending
on sample size; cross-market segments with specific service needs; valueadding performance relative to expectations; and specific gaps between
importance and performance.
Act on the Information. Action planning organizes activity to improve
customer satisfaction by operationally defining and functionally deploying
customer requirements. This makes it possible to establish cross-functional
quality improvement reams. Using techniques such as quality function
deployment, flow charts, check sheets, Pareto charts and cause-and-effect
diagrams, teams can improve processes based on external customer needs,
internal chains of customers, workflow analysis, and work-process analysis.
Measure Performance over Time. Periodic measurement of how a

company and its competitors perform on the key drivers of satisfaction
reveals the rate at which customer satisfaction is improving or declining.
Using the same sample criteria and interviewing techniques applied in
critical-needs assessment, measurement should involve a brief interview on
current performance and include an opportunity for open-ended comments.
The frequency of measurement should be determined by market dynamics
and should allow sufficient time for change to become measurable.
Consideration also should be given to periodic qualitative monitoring to
provide information on changes in environment. Using the model described
in the preceding paragraph to improve and measure customer satisfaction
requirements can greatly enhance existing total quality management and
other quality improvement programmes. It also can stand alone as a first
step in focusing an organization on improved customer satisfaction as the
key to improved market share and financial performance.
In either case, success ultimately is determined by the organizations topdown commitment to meet and exceed the customers requirements in the
market place. For example, knowing that customers want quick service is
helpful; knowing that quick service means having their problems solved in
less than 5 minutes is actionable.
------------------------------------------------------
Market Development Research:- Socio-Cultural Trends- Segmentation

research
Mass Segmentation to Niche Segmentation
Niche segmentation is the act of finding a slot within the mass
segment, rather than creating a unique slot with fewer customers.
Why Niche segmentation?
Following socio-cultural changes/trends are responsible.
(A) Significant change in Demographics of the society in last
3/4 years
# Increase in disposal income, Metros- 35to55%, Mini
Metros30-50%, Tier-I cities- 25-40%, Rural Area- 10-15%
# Increasing financial independence among women, No. of
girls
pursuing
graduation,
post-graduation&
PhD
programs have increased by 25-35% in last 9 years.
# In small families, childrens influence on purchase
decisions
Have increased.
# Increase in the level of education overall.
(B) A Cultural Transition

$ From myths to awareness to acceptance.
$ From tradition-bound to techo-savy
$ Change in family structure, from joint to nuclear.
$ Shift in thinking process, from orthodox to modern.
(C) Shift in Market Dynamics
@ Increase in product category, from general to
distinctive.
@ Need for innovation & experimentation.
@ Changing buyer behavior like from basic goods to
premium
Or luxury or value added goods.
@ Growing customer expectations due to impact of
internet.
@ Distinct individuastic& clear preferences for health&
fitness.
@ Competitive clutter.
Examples of Niche segmentation
Exhibit 1: Niche segment or Special slot
PRODUCT
BENEFIT
NICHE SEGMENT
Womens Horlicks
Wholesome&
New
generation
complete
women
balancing
Nutritional
health between
family
drink.
&career.
Amul
Probiotic Overall health & well - Health&
fitness
wellness ice cream.
being
conscious generation.
Kelloggs Special K
Whole wheat cereal For women who are
flakes
for
weight fitness conscious.
management.
Colgate Total
Whitening
&
anti- For kids prone to
cavity toothpaste.
cavities.
Johnsons no tears Protection of delicate Infants
shampoo
skin & eyes.
Diet
Coke/Diet Low
calorie Over weight persons
Pepsi/Amul Lite
beverages&
food unable to resist the
products
attraction of processed
food.
Scooty Pep
99 vibrant colors, first Young women loving
time ever in any two feminine colors.
wheelers.
Saffola Active
Cooking oil having low Heart
awareness&
cholesterol
cholesterol control
Saffola low calorie Rice Health& fitness
Higher middle class
young men worrying
about stomach.
Gender specific Niche segmentation.
Exhibit 2: Gender Wonder
Brand
Company
Benefit/ Niche Segment
Fair& Handsome
Emami
Fairness cream for men

to convert their tough
skin in fair/gentle skin.
Fair One
Elder
Pharma& The goodness of herbs
Shhanaz Husain
especially for men.
Fair & lovely(Men`s HUL
Fairness cream for men
Active)
with sun control.
Clinic All Clear
HUL
Anti dandruff shampoo
especially made for
rough scalp & hair type
in men.
Synergy
Garnier(L`oreal)
Specially made hair
colors for mens hair
Nivea for Men
Beiersdorf
Grooming & skin care
products for men.
Saka Bleach
Fem
India`s
first
bleach
especially formulated
for men`s skin tone.
Set Wet
Paras Pharma
Hair
grooming
range( gel&shampoo)
for men.
Parachute
After Marico Ind
Wet look & extra hold
shower range
Gel,antidandruff&moisturizing
hair care range for
men.
Biotherm
L`oreal
Anti-ageing gel, under
eye gel, moisturizing
pack etc, catering to
wrinkles sagging necks
in men.
Axe
HUL
Range of deodorants
for men
Pleasure
Hero-Honda
Scooter designed for
providing
thrill
to
women (Why should
boys have all the fun?)
Creating a Niche Segment: - Nokia way

Nokia did marketing research during September 2008.Total sample size
was 80,000 across 26 countries. After analyzing data, it came up with 12
distinct customer segments. These were aggregated into 4 major
categories-------Connect, Live, Achieve and Explore.Nokia divided its handsets into
these 4 categories. This very well reflects in its positioning
strategy------------------------ Connecting People
The strategy is very successful providing 65% market share to nokia.
High Involvement
Pragmatic
Leaders
Live
Technology Leaders
Technology stylists
Young Explorers
Explore
Life Builders
Life Jugglers
Style Leaders
Rational ----------------------------------------------------------------- Aspirational
Mature Acceptors
Family Providers
Connect
Simplicity Seekers
Image Seekers
Style Followers
Achieve
Lower involvement
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
FINDINGS
Masculine
Qualities Rank Rank

for Lux for
SRK
5
6
0
2
3
4
5
6
Feminine
Status
Sophisticated
Cool / Hep
Glamorous
1
3
4
5
2
2
5
3
4
1
1
2
1
1
1
Summary of Findings
1
2
3
4
5
6
Correlation
Glamour
There is not a
significant Difference
Feminist
There is a significant
Difference
Mascutinity
Difference
Status
Difference
Sophistication There is not a
Cool / Hap
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:
If company plans to continue with a male

celebrity in its ads, it should take Saif Ali Khan
or Akshay Kumar(AK)as majority of the
respondents (31%) liked 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 ,AK or
Shahid Kapoor for the same. Saif,AK and
Shahid are up in their careers and are thus
very much in the news. The metro sexuality
quotient is very high in 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.
Masculinity quotient of Shah Rukh Khan
and Lux.
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
Multivariate
(Simultaneous
Analysis of two or
More variables
Single variable)
Testing of hypothesis
analysis
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
hypothesis&
Alternate hypothesis must be stated.
null
Choose the statistical test: The choice of the

statistical test is dependent on the power and
efficiency of the test, the nature of the
population, the method of drawing the sample
and the type of measurement scale.
Select the desired level of significance: The
exact level of choice depends on how much
Alpha risk one is willing to take in comparison
with beta risk (Alpha risk and Beta risk are
explained later in this chapter).
Compute the calculated difference value: After
the data is collected, the formula for the
appropriate significance test should be used
to obtain the calculated value.
Obtain critical test value: The critical value for
the calculated value should be looked up in
the appropriate tables. The critical value is
the criterion that defines the region of rejection

from the region of acceptance of the null
hypothesis.
Make the decision: For most tests, if the
calculated value is larger than the critical
value, we reject the null hypothesis and it is
conclude that the alternate hypothesis is
accepted. If the critical value is larger, we
conclude we have failed to reject the null.
2.5% of area
95% of area
2.5% of area
Rejection
region
Acceptance
region
Rejection region
4.13
Formulating A Hypothesis
The first in hypothesis testing is stating the

hypothesis itself. A hypothesis to a problem
can be basically stated in two ways Null
hypothesis and Alternative Hypothesis.
Null Hypothesis: In tests of hypothesis we
always begin with the assumption (or)
hypothesis called Null Hypothesis. The Null
hypothesis asserts that there is no significant
difference between the statistics and the
population
parameters;
and
whatever
observed difference is there is merely due to
population. It is denoted by the symbol H0.
The null hypothesis is often the reverse of
what the experimenter actually believes; it is
put forward to allow the data bring out the
contradiction.
In the above example, the null hypothesis is
that the average purchase has not changed
from Rs. 1500. it is represented by
H0 : (mu) = Rs. 1500
Alternative Hypothesis: Alternative hypothesis
is complementary to the Null hypothesis and
is denoted by the symbol H1.
In the above example, the alternative
hypothesis is that there has been a change in
the average purchases per week from Rs.

1500. We can have three different alternative
hypotheses about this change. These are
indicated below as:
HA : (mu) Rs 1500
HA: (mu) > Rs 1500
HA : (mu)< Rs 1500
Significance Level
The probability level which is too low to justify
the acceptance of a null hypothesis
The hypothesis can be tested with a two-tailed
test.
The regions of rejection for null
hypothesis are divided between the two tails.
The second hypothesis uses the right tail for
rejecting the null hypothesis whereas the third
uses the left tail for rejecting it.
A hypothesis is never accepted; it is only
rejected or failed to be rejected.
This
statistical testing is not sufficient proof for
disproving a hypothesis. But instead of a
clumsily saying that we have failed to reject
the hypothesis, we say that we accept the
hypothesis. Rejecting a null hypothesis is
equivalent to accepting the alternative
hypothesis and rejecting an alternative

hypothesis is equivalent to accepting the null
hypothesis.
4.14
Errors In Testing
The decision to accept or reject the null

hypothesis H0 is made on the basis of the
information supplied by the observed sample
observations. The conclusion drawn on the
basis of a particular sample may not always
be true with respect to the population. For
instance, in the above mentioned example we
have a 5.0% chance of rejecting a true
hypothesis in the above mentioned example.
In table 4.14, four cases are presented. When
the alternative hypothesis is true, it means
that the null hypothesis is false. Using this
concept we can deduce that the cases are
accepting a true null hypothesis and rejecting
a false null hypothesis from the table it is clear
that in any testing problem we are liable to two
types of errors.
Type-I error: Rejecting a true null hypothesis
is called a Type-I error. It is compared to
convicting an innocent person.
This is
considered a serious error and researchers
generally try to minimize its occurrence as

much as possible.
The probability of rejecting a true null
hypothesis in the above example is 5%. This
indicates the probability of a type I error. It is
denoted by .
Here, = 0.05, or 5%
The region between the acceptance and
rejection region is called the critical value. In
the above problem the critical values are Rs.
1470 and Rs. 1530 at a given significance
level of 5%.
Alternatively, for a given
significance level we can calculate the critical
values above or below which a hypothesis can
be rejected or accepted.
Type-II error: Accepting a false null hypothesis
is called a Type II error and is compared to
acquitting a guilty person. It is difficult to
detect such an error. It is denoted by . And
this error depends on (1) the true value of the
parameter, (2) the level we have selected,
(3) the nature of the test used (one or twotailed) to evaluate the hypothesis, (4) the
sample standard deviation, and (5) the size of
the example.
Let us assume that the mean has actually

moved from 1500 to 1470.
Our null
hypothesis is that the average purchase is
1500. This is false. The probability of not
finding this out, which is nothing but assuming
that the given hypothesis is correct, is ()
95%. For a different population mean the
value of will be different. Ideally, a zero
indicates an error free test. This means that
ideally 1- must be equal to 1. The closer
this value is to 1, the better is the test. 1- is
considered as the power if a hypothesis test
for it is the probability of rejecting a false null
hypothesis.
H0
true
HA
true
4.15
Accept H0
is Correct
is Wrong
Type-II error
Reject H0
Wrong
Type-I error
Correct
Selecting A Test
Three questions should be raised when

choosing between various tests.
How many samples does the test

involve? One, two or K?
If moor than one sample is involved, are

they related or not?
What is the type of data? Nominal,
ordinal, interval, or ratio?
Questions like the size of the sample, the

quality of the sample size and weighted data
can be raised.
These questions will be
answered in advanced statistics books and
researchers should make use of them when
required.
Two samples are often used when there are
two different products. Two samples, one for
each product, are taken and tested to find out
whether they belong to the same population.
Table 4.1 lists the various statistical
techniques
appropriate
for
different
measurement levels and test situations.
ANOVA is discussed in the text, but in a
separate chapter. Only the most commonly
used tests are surveyed in the following
sections. Non-parametric tests except chi
square tests, call for an involved discussion
and so are not discussed here. Refer to
advanced spastics books for studying these
methods in detail.
4.2 CHI SQUARE (2) ANALYSIS

This is the most widely used non-parametric
test, particularly
for nominal data, but it can
k
also be used for higher scales. It is used for
actual values rather than percentages. It is
used to find if difference between the
(Oi Ei)2
2 =
i=1
Observed
categories
significant.
Ei
distribution of
and expected
data among
distribution is
One sample Test

In this test, we first note the expected
(hypothesized) frequencies in each of the
categories.
Then the values of actual
frequencies
are
compared
with
the
hypothesized frequencies. The value 2 is a
measure that expresses these differences in
the form of a mathematical value. The larger
this difference, the larger this difference, the
larger is the 2 value. The formula for 2 is
given as
Where
Oi = Observed number of cases categorized in

the ith category
Ei = expected number of cases in the ith
category
K= The number of categories
2 is unique for each degree of freedom. The
degrees of freedom involved in a category are
equal to K-1.
Care should be taken in using the chi square
method in the following cases:
When d.f. =1,each expected frequency

should be at least 5 in size.
If d.f.>1, then the 2 test should not be
used if more than 20 percent of the
expected frequencies are smaller than
5, or when any expected frequency is
less than 1.
Let us take an example. A survey was

conducted in Delhi to measure the intent of
purchasing a second car. A sample of 200
people was taken. We would like to analyze
the data based on the profession of the
respondents. Is the intent dependent on the
profession or not?
We assume that these categories have no

effect on the income. Now we proceed with
the procedure recommended earlier.
Hypothesis : H0: O1 Ei. The proportion of the
population that intends to buy independent of
their professional categories as given.
Alternative hypothesis is
HA:O1<> Ei
Statistical test: The responses are divided
into nominal categories and so we should use
Chi square analysis
Calculated value:
Using the Table 4.2 we have calculated the
value chi-square to be 2= 12.68
Degrees of freedom are 4-1=3
Critical value: From the tables we get a critical
value of 7.82 for a significance of 5%.
Decision: here the calculated value is greater
than the critical value and so we reject the null
hypothesis conclude that the categories do
have an effect on the intent to purchase a new
car.
Table 4.2: The Data and Calculations for

Chi-Square with Single Sample Problem
Profession
Intendent Number
to buy Oi interviewed
Self
employed
(like doctors,
lawyers)
Front
Line
workers
Administrative
Academic
Total
Percent
E
(No.
Fre
Interviewed (P
/ 200)
45
14
90
17
40
20
14
15
60
40
30
200
20
15
100
Two Sample Test

The basic methodology is same as in the one
sample test but the formula involved is as
follows:
Here the data is categorized and so is placed
in a two
(Oij - Eij)
2 = E
i
ij
Dimensional matrix. The subscript ij refers to

ijth cell.
The degree of freedom are given as (r-1)(c-1).
4.3 ONE AND TWO TAILED HYPOTHESIS
There could be two types of situations, based
on which hypothesis is classified as one sided
or one tailed and tow sided or two tailed.
When alternate hypothesis HA is defined as
only more than or less than hypothesized
mean () i.e. HA> i.e. HA > or HA < is
called one tailed hypothesis. On the other side
when alternate hypothesis is stated as not
equal to hypothesized mean () i.e. HA , it
means HA could be less than or more than
. Hence this is called as two sided or two
tailed hypothesis.
4.4 LEVEL
OF
SIGNIFICANCE
CRITICAL VALUE OF Z
AND
Level of
Critical value of Z
ignorance One tailed Two tailed
()
test (z)
test (z)
10%
1.28
1.64
5%
1.64
1.96
1%
2.33
2.58
4.5 ILLUSTRATIONS
Case (i) Two tailed test
Problem : Nicrome Metal works, a leading
name in Packaging Industry, has designed
automatic milk packing mache Fill-Pack to fill
plastic pouch with 1000 ml of milk with a
standard deviation of 10ml. A sample of 100
pouches was examined and then the average
volume / quantity of milk found was 98oml.
Can we say with 95% confidence that the
machine is working property?
Null Hypothesis = H0 = 1000ml
Alternate Hypothesis = HA 1000ml
X -
Test Statistics = t/z = ----------S /n
Data : x = 980ml., = H0=1000ml, n = sample
size = 100, standard deviation = s =10ml.
980 -1000
- 20
Hence t/z = ---------------= --------- = 20
10/ 100
1
For 95% confidence level, corresponding level

of significance is 5%, and the value of z for
two tailed test is 1.96. As such calculated
value of z i.e. 20 is more than actual value of z
i.e. 1.96. Hence null hypothesis is rejected.
Conclusion Packing machine is not working
properly.
Case (ii): One tailed test
A sample of 1000 spherical roller bearing is
found to have average weight of 50 grams.
Sample population standard deviation is 5 gm.
One bearing, randomly selected was found of
60 gm. What is the guarantee that balance
bearing will be of correct weight?
Null Hypothesis = H0= 50 gm
Alternate Hypothesis = H1: < 50 gm
x-
Test statistics = t/z = --------S / n
Data: x=60 gm, = 50gm, S=5 gm, n =
sample size =1000
60-50
10
10
t/z = ----------- = --------- = ----------- = 63.29
51000 5 / 31.62 0.158

Assume level of significance 1% hence value
of z for one tailed test is 2.33.
Since
calculated value of Z (63.29) is much more
than actual value of z (2.33) null hypothesis is
rejected.
Conclusion: There is no guarantee that
remaining bearings will be of correct weight of
50 gm.
Illustration
Lux Soap and changing
consumer behaviour
Research Problem
3) 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.
4) 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
HA :
Tehre is a mismatch between the
FINDINGS
Rank
Rank
for Lux for
SRK
1
2
3
4
5
6
Masculine
Feminine
Status
Sophisticated
Cool
Glamorous
6
2
5
3
4
1
0
1
2
1
1
1
Summary of Findings
1
2
3
4
5
6
Correlation
Glamour
There is not a
Feminist
Difference
Mascutinity
Difference
Status
Difference
Sophistication There is not a
Cool / Hap
Difference
ANALYSIS
Market Share of Various Soaps:
Out of 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 interviewed, 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, it was found that out
of 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 Soap:
From the data collected, it was found 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 it can be concluded
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 wave in the
market, but that according to research will not
attract many customers and may be not
improve the market share for the soap.
Preferred male Star in Lux Ad:
If the company plans to continue with a male

celebrity in its ads, it should take Akshay
Kumar or Saif Ali Khan as majority of the
respondents (41%) though they are more of a
macho sexual man as compared to SRK.
They were followed by Shahid Kapoor with
29% votes.SRK could fetch only 10% of the
votes. This supports the 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 A.K or Saif Ali Khan
or Shahid Kapoor for the same. Both AK, Saif
and Shahid are on the up in their careers and
are thus very much in the news. The macho
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 wave 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 stated hypothesis, it was necessary 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.
6. There is no significant Difference in the
Glamour quotient of Shah Rukh Khan
and Lux.
Feminine quotient of Shah Rukh Khan
and Lux.
8. There is no significance Difference in
the Sopyhistication quotenti of Shah
Rukh Khan and Lux.
Masculinity quotient of Shah Rukh Khan
and Lux.

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.
Correlation analysis
Correlation Is statistical technique used for
measuring relationship or interdependence of
two or more variables. E.g. marketing
manager might be wanting to
know
relationship of sales with say ad budget, no. of

salesmen etc.
Whenever a correlation analysis is to be
attempted it is advisable to draw a graph
which represent following type relationship
y
positive relationship
y negative relationship
\
/
\
x
non linear relationship
x
y
no relationship
.
.
.
.
.
..
......
.
.
.
.
.
Illustration
Let us study relationship between say, ad budget
and sales. Independent variable x represents ad
expences in Rs lacks where as dependent variable
y represents sales in Rs crores
X: 2
Y: 3
5
4
4
4
6
8
9
9
Worksheet for the calculation of correlation

Series X
2
5
4
6
9
26
Series Y
3
4
4
8
9
28
XY
6
20
16
48
81
171
X2
4
25
16
36
81
162
The formula for calculating coefficient of

correlation r is as follows:
Y = n xy ( x) ( y)
(n x2 ( x) 2 (n y2 ( y) 2)
Y2
9
16
16
64
81
186
Where r is coefficient of correlation and n is no. of

observations ( here n = 5 )
After substituting values n, x, y, xy, X2 and Y2
r = 5* 171 ( 26 *28)
( ( 5 * 162) ( 26)2) ( ( 5* 186) ( 28)2)
= .908
If coefficient of correlation i.e. r having value .9
and more indicates that dependent variable y is
having very high degree of positive relation with
independent variable x. If value r is less than .5, it
indicates there is no relationship. The value of r
more than .5 but less than .9 indicates weak
relationship.
Rank Correlation
Sometimes marketing manager is interested in
examining the extent of association between two
ranks. For that purpose following method is used:
Illustration
Nokia cellular appointed 10 salesmen for Indian
markets to sell handsets to institutional buyers. It
provided 1 months training to these salesmen. It

observed the performance of the salesmen during
the training and ranked them. After training was
over, all the salesmen were field sales. Their
performance in field sales was observed for 6
months, based on which they were ranked. Now
Nokia wants to know is there any relationship
between training and ranked issued during field
sales.
Rank of salesmen in respect of training and field

sales performance.
Salesme Ranks
n
obtaine
d in
trainin
gX
1
Ranks on
the basis
of field
sales
performan
ce
Y
5
Differen Differen
ce
ce square
d=( X-Y) d2
-1
2
3
4
5
6
7
8
9
10
6
1
3
9
7
10
2
8
5
8
3
1
7
6
9
2
10
4
-2
-2
2
2
1
1
0
-2
1
4
4
4
4
1
1
0
4
1
d2 =
24
The mathematical formula to compute coefficient

of rank correlation is as follows
6 *d2
Rs = 1 N (N2 1)
Where rs means coefficient of rank correlation, n
means no. of observations ( here no. of salesmen),
d means difference between two ranks.
Substituting values,
(6) (24)
rs = 1 10 ((10)2 -1)
= 1 - .145
= .855
The value of rs equal to more than .8 indicates
high degree of correlation between independent
variable x and dependent variable y. here rs is .855
means there is high degree of correlation between
ranks issued to salesmen during training and field
sales performance.
CHAPTER 5
SETTING OF AN IMPLEMENTATION OF MR
PROJECTS
Following steps are involved:
Step 1: Defining research problem
identifying research objectives
and
Management problem and marketing research

study problem could be different as explained
in following table:
Management problem MR study area
1. Allocate ad-budget Estimate awareness
among various media. generated by each
meida.
2.
Change the Design
a
test
marketing programme marketing
situation
such that the effect of
new programme can
be estimated.
3. Increase the sales Measure the current
of a product
image of the company
as well as the of the
product and project
sales with image.
Exploratory Research-----Research Purpose
Research Questions
1) What new products Which

alternative
to be developed?
products
are
possible?
2)
What
product What
benefits
do
appeal
will
be people seek from the
effective in advertising product?
3) How can our What is the nature of
service be improved? customerdissatisfaction?
Descriptive Research
Research Purpose
Research Questions
1) How should a new Where do people now
product
to
be buy similar products?
distributed?
2) What should be What kind of people
target segment?
now
buy
similar
products& who is
likely to buy our
brand?
3)How should our What is our current
product be changed? image? What image
consumer are looking
forward to?
Experimental Research----Research Purpose
Research Questions
1)Will an increase in What
is
the
sevice
staff
be relationship between
profitable?
size of service staff &
revenue?
2) What advertising
program will translate
into
marketing
objectives?
3) Should a new
budget or no-frills
class of airfare be
introduced?
Run all ads& watch

Which ads generated
maximum sales?
Will the no-frills airfare
generate
sufficient
new passengers to
offset the loss of
revenue from existing
passengers
who
switch from economy
class?
Step 2: develop research plan

It comprise of following sub steps
(a) Research Design : Exploratory /
Descriptive / Experimental
(b) Data Source : Sources for secondary
data as well as for primary data to be
mentioned
(c) Research Approach : Whether research
will be done through observation, focus
group interviews,
individual sample
interviews or through experiments
(d) Sampling plan: It comprise of sample
universe, sample frame, sample size,
sampling method, sampling procedure
and sample unit. Sample unit could be
household or industrial.
Household
sample means end users whereas
industrial sample means members of
B2B
market
i.e.
wholesalers,
manufacturers, retailers, etc.
(e) Contact method : Mail, telephone,
personal interviews,
Step 3: Collecting the market data
For collection of market data, a temporary
marketing organization is formed, which
comprise of project leader, MR Officer and the
investigators.
Investigator go sample to sample and
administer the questionnaire and collect the
data. MR Officer supervises the investigators,
as well help project leader for data analysis.
Project leader is the captain in charge. He
formulates the project in form of title,
objectives, sampling, data analysis and
preparation of report.
Step 4: Data analysis and interpretation
For data analysis statistical techniques like
regression analysis, correlation analysis,
univariate and multivariate analysis as well as
hypothesis testing is used.
21st century
researchers use a SPSS which directly gives

analysis of all above mentioned information.
Step 5:
(A) Presentation of market data
The data can be presented in form of
(i)
Tables
(ii)
Graphs
(iii) Pie charts
(iv) Bar charts
(v)
Pitto graphs
(vi) Cartos graphs
(B) Preparation of MR report
It comprise of following chapters:
1.Executive Summary
2.Objectives
3.Company profile and product profile
4.Research methodology
5.Limitations
6.Data analysis, interpretation and
findings
7.Conclusions
8.Recommendations
9.References (a) questionnaire (b)
List of samples
1.10.4. Research Project 1 :
Title : To research the consumer behaviour in
selection of Parle Biscuits.
Parle Biscuits
:
Compaly Profile :
PARLE
Parle Products has been Indias largest manufacturer of biscuits and

confectionery, for almost 80 years. Makers of the worlds largest selling biscuit,
Parle-G, and a host of other very popular brands, the Parle name symbilizes quality,
nutrition and great taste. With a reach spanning even the remotest villages of India,
the company has definitely come a very long way since its inception.
Many of the Parle products - biscuits or confectioneries, are market leaders in
their category. With a 40% share of the total biscuit market and a 15% share of the
total confectionary market in India, Parle has grown to become a multi-million dollar
company.
In 1929 a small company by the name of Parle products emerged in British
dominated India. The intent was to spread joy and cheer to children and adults alike,
all over the country with its sweets and candies. The company knew that it wouldnt
be an easy task, but they decided to take the brave step. A small factory was set up
in the suburbs of Mumbai, to manufacture sweets and toffees. A decade later it was
upgraded to manufacture biscuits as well. Since then, the Parle name has grown in
all directions, won international fame and has been sweetening peoples lives all
over India and abroad. Apart from the factories in Mumbai and Bangalore Parle also
has factories in Bahadurgarh in Harayana and Neemrana in Rajasthan, which are
the largest biscuit and confectionery plants in the country.
Product Profile :
Name of
the Biscuits
Features of the products
Pack Sizes
available
Parle g
Filled with the goodness of milk and wheat, Parle

G is not just a treat for the taste buds, but a
source of strength for both body and mind.
Tear over a packet of Parle G to experience
what has nourished Generations of Indians since
last sixty five years, making it truly
Hindustan Ki Taakat.
19 G, 44 G,
44 G, 66 G,
93.5 G,
231.5 G,
346.5 G,
400 G, 462
G, 576.5 G
Krackjack
The original sweet and salty biscuit is one of the 75 G, 120 G,

most loved biscuits in the country
240 G
Krackjack
Crispy
Creams
It is a delicious combination of crispyness of

Krackjack and sweetness of cream biscuit with
salty taste gets laced with a sweet & sour lime
flavour in the cream sandwiched between
Krackjack biscuits.
Monaco
A light crispy biscuit sprinkled with salt, Monaco 75 G, 120 G,

adds a namkeen twist to lifes ordinary moments. 240 G
Foot Note : G mean grams
90 G
Name of
the Biscuits
Features of the products
Pack Sizes
available
Orange
Tickle your senses with Parle Orange Cream The tangy orange cream between two
scrumptions biscuits makes for a real treat.
90 G,
180 G
Hide n seek This is a choco biscuit that flirts with your taste
buds which seek out the chocolate chips that
arent really hidden.
25 G, 50 G,
100 G,
200 G
Hide n seek A cookie with a reputation for romance. Indulge

milano
in the sinful taste of Milano and everything
that follows it.
65 G,
100 G,
135 G
Digestive
Marie
This biscuit is more enjoyable and much healthier, 25 G, 50 G,

with lower fat and calories than other digestive
100 G,
biscuits, it helps us to stay Active-Lite all day.
200 G
Yahi Marie, Sahi Marie!
Marie
biscuit
Parle Marie is lighter, crispier and tastier. And

immerse yourself in an engaging conversation
and an even more engaging taste.
88 G, 176 G,
347 G, 400 G,
(For East)
Milk shakti
The Shakti of milk fortified with the goodness of

honey, a zabardast combo.
75 G, 150 G
Parle 20-20
cookies
parle presents 20-20 Cashew and butter cookies

where every cookie is baked to deliver the
perfect taste and aroma. It promises a
combination of crunch and scrumptious delicacy.
75 G, 110 G,
225 G
Nimkin
A crispy cracker that adds a namkeen zing to

the usual biscuits.
75 G, 150 G
Consumer Profile :
110 respondents in pune geographic were contacted.
Segment targeted :
FChildren
FOld age people
FHousewives
FStudent
Research Objectives :
1.
To find out the penetration of Parle biscuits in Pune.
2.
To find out the consumer buying behaviour towards buying biscuits in

Pune.
3.
To find out the quantity size and buying frequency of the consumers.
4.
To find out the effect of promotional campaigns done by Parle biscuits

among the consumers.
5.
To find out the consumers feedback i.e. improvements required or

suggestions given.
Questionnaire :
Questionnaire for Household Survey :
Dear Sir/Madam,
The management students are conducting this survey as a part of their project
in the field of research. The purpose of this activity is to measure the penetration of
Parle Biscuit in Pune.
1.
2.
Which brand comes 1st in your mind when you think of biscuits?
(a) Parle ____________
(b) Britannia __________
(c) ITC (Sun feast) __________
(d) Others __________
Which biscuit of parle brand do you consume?

(a) Parle G __________
(b) Hide n seek __________
(c) Krackjack __________
(d) Monaco __________
(e) Others (Please specify) __________

3.
Which factor influences you to purchase a biscuit packet?

(a) Price __________
(b) Taste __________
(c) Advertisement __________ (d) Others (Please specify) _______
4.
While purchasing a biscuit what quantity size do you usually go for?

(a) small __________
(b) Medium __________
(c) Large __________

5.
How frequently do you buy biscuits?

(a) Daily __________
(b) Weekly __________
(c) Fortnight __________
(d) Monthly
_______
6.
Do offers or schemes affect your buying decision?

(a) Yes / No and Why? _________________________________________
7.
Who consumes Parle biscuit in your home?

(a) Children __________
(b) You __________
(c) Old aged people __________ (d) Others (please specify) _______
8.
If your preferred biscuit is not available, you go for

(a) 1st Choice __________
(b) 2nd choice __________
9.
If you get extra benefits and features in some other brand then will you switch
over?
Yes / No and why ________________________________
10.
Have you seen any promotional campaign of Parle biscuit?

Yes __________
If yes then which one :
(a) M.S. Dhoni & grandmother
(c) Amir Khan & Dharsil
11.
No __________
(b) Hrutik Roshan & girlfriend
(d) A boy flying with aeroplane
Would you suggest any changes in Parle biscuit in the following fields?
a.
b.
c.
d.
e.
f.
Availability of products in different places __________

Style of packaging __________
More schemes to be associated __________
Price __________
Taste __________
Others (please specify) __________
Something about you
Name : ____________________________________________
Age Group : _______________
Address : ________________________________________________
Contact Number : ___________________
Occupation : _______________________
No. of members in your family : _________________________________
Table No. 3/1

Year
Sales in Rs.
Sales in Unit (Tonnes)
Market Share %
2007
1554.74
401114.79
23.78
2006
1405.31
306300.86
21.18
2005
1004.57
219469.86
17.53
Graphical representation of sales in Rs., sales in units and market share in

percentage for the year 2005 to 2007
Sales in Rs. Crores
1,400.00 -
1,405.31
Mean sales in crores
1,200.00 1,000.00 -
1,004.57
800.00 750.64
600.00 400.00 200.00 0.00 2005
2006
2007
year
From the above graph we can see that there is a continuous rise in sales of
Parle biscuits @ 30-40% from the year 2005-2007. In 2005-2006 sales rose by
33.83% whereas in 2006-2007 sales rose by 39.9%. Thus the company is
constantly growing in terms of sales in Rs. Crores.
Sales in Units Tonnes
500,000.00 -
401,114.79
Mean sales in units
400,000.00 -
306,300.86
300,000.00 219,469.86
200,000.00 -
100,000.00 -
0.00 2005 2006 2007 year

From the above graph we can say that sales in units have shown a trend in
growth of 30-40%. In the year 2005-2006 sales in units have rose by 39.56%
whereas in the year 2006-2007 sales in units have rose by 30.95%. Therefore the
sales have risen by 86831 and 94831.95 tonnes in 2006 and 2007 respectively but
there is a percentage drop in sales (in uits) by 8.61%.
PARLE
Market Share
25.00 23.78
21.18
Mean market share
20.00 17.53
15.00 -
10.00 -
5.00 -
0.00 2005 2006 2007 year

From the above graph we can say that there is a rise in market share of parle
biscuits @ 17-24% for the years 2005-2007. In the year 2005-2006 market share
rose by 3.65% whereas in the year 206-2007 the market share rose by 2.6%.
Therefore we can conclude that there has been a rise in market share but the
percentage rise has fallen by 1.05%.
PARLE
Analysis and Intepretation of Data

1.
Which brand comes 1st in your mind when you think of biscuits?
(a) Parle ____________
(b) Britannia __________
(c) ITC (Sun feast) __________
(d) Others __________
From the below graph we can see that Parle is the brand that most of the
consumer consume. 48.6 customers responded that they consume parle biscuits,
38.32% of customer responded that they consume Britannia and 13.06% of
customer responded that they prefer ITC (Sunfeast). From the percentages we can
see that parle has got a good amount of share in the market and customers are
willing to consume its biscuits.
Brand of Biscuits you consume
A
C
41
38.32%
Britannia
52
48.6%
Parle
B
14
13.08%
ITC
Brand
A - Britannia
B - ITC
C - Parle
PARLE
Analysis and Intepretation of Data

2.
Which biscuit of parle brand do you consume?

(a) Parle G __________
(b) Hide n seek __________
(c) Krackjack __________
(d) Monaco __________
(e) Others (Please specify) __________

From the chart we can see that Parle-G as well as hide n seek is consumed by
46% of the consumers whereas krackjack accounts for 8% of the total consumption.
Brand of Parle Biscuits
C
4
8.0%
Krackjack
A
23
46.0%
Parle G
B
23
46.0%
Hide N Seek
Parle
A - Parle G
B - Hide N Seek
C - Krack Jack
PARLE
3.
Which factor influences you to purchase a biscuit packet?

(a) Price __________
(b) Taste
__________
(c) Advertisement __________
(d) Others (Please specify) _______
From the chart below, we can conclude that 72.9% of the consumers are
influenced by the taste of biscuits whereas 24.3% o the consumers are influenced
by the price factor and the rest 2.8% of the consumers are influenced by the
advertisement. Thus, we can see that taste is the most important factor which
influences the customers buying behaviour and parle has an upper hand on this
factor.
Factor Influence you to Buy
2
8.0%
3
Advt.
B
24.3%
26
Price
C
72.9%
78
Taste
Influence
A - Advertisement
B - Price
C - Taste
PARLE
4.
While purchasing a biscuit what quantity size do you usually go for?

(a) small __________
(b) Medium __________
(c) Large __________

In the following graph we can conclude that 59.81% of the consumers go for
medium pack whereas 28.79% of the users go for small pack and the rest 11.21% of
the consumers prefer large or family packs. Mostly the consumers of parle are kids
and bachelors so they mostly prefer medium and small packs whereas families
mostly prefer the large pack.
Quantity You usually go for....
A
11.21%
Large
12
C
28.97%
Small
31
B
59.81%
Medium
64
Quantity
A
-Large
B - Medium
C - Small
PARLE
5.
How frequently do you buy biscuits?

(a) Daily __________
(b) Weekly __________
(c) Fortnight __________
(d) Monthly _______
How Frequently you buy
A
17.76%
Daily
19
15.89%
Fortnight
17
62.62%
Weekly
67
C
3
74...
Frequency
A - Daily
B - Fortnight
C - Monthly
D - Weekly
From the chart we can see that 62% of the consumers buy biscuits weekly.
The rest 15%, 17% and 3% prefer to buy biscuits fortnight, daily and monthly. As the
consumers of parle are mostly kids and bachelors and they mainly buy medium
packets so they mostly go for weekly purchase.
PARLE
6.
Do offers or schemes affect your buying decision?

(a) Yes / No and Why? _________________________________________
From the chart below we can conclude that 58.88% of the consumers will not
change their buying decision even if offers and schemes are offered to them
whereas 41.12% of the consumers will change their buying decisiion if they are
offered schemes and offers related to quantity, price, taste, quality etc.
Schemes OR Offers Affect you buying decision?
41.12%
Yes
44
58.88%
No
63
Offers
A - No
B - Yes
PARLE
7.
Who consumes Parle biscuit in your home?

(a) Children __________
(b) You __________
(c) Old aged people __________
(d) Others (please specify) _______
From the pie-chart given below we can conclude that 45.79% of the
consumers consume Parle biscuits themselves who are between the age group of
25-40 years whereas 34.58% of the consumers purchase parle biscuits for their
family and the rest 19.63% purchase Parle biscuits for their children.
Who consumes Parle at home
A
C
19.63%
Children
21
45.79%
Myself
49
B
34.58%
Family
37
Consumers
A - Children
B - Family
C - Myself
PARLE
8.
If your preferred biscuit is not available, you go for

(a) 1st Choice __________
(b) 2nd choice __________
From the chart we found that 48.6% of the consumers first alternative would
be parle biscuits whereas 38.32% of the consumers would go or Britannia biscuits
and the rest 13.08% of the consumers would prefer ITC (Sunfeast) as their second
alternative. Therefore we can say that Parle biscuits has left a remarkable
impression on consumers mind as the second choice entered by most of the
consumers is also Parle biscuits.
Preferred Biscuits
A
C
38.32%
Britannia
41
48.6%
Parle
52
B
13.08%
ITC
14
Preference
A - Britannia
B - ITC
C - Parle
PARLE
9.
If you get extra benefits and features in some other brand then will you switch
over?
Yes / No and why ________________________________
From the chart below we can conclude that 64.49% of the consumers will not
switch over to other brands even if extra benefits are offered to them whereas
35.51% o the consumers will switch over to other brands if they get extra benefits.
If you get extra benefits, will you switch to other brands
35.51%
Yes
36
64.49%
No
69
Switch
A - No
B - Yes
PARLE
10. Have you seen any promotional campaign of Parle biscuit?

Yes __________
No __________
If yes then which one : ________________________________________

The pie-chart shows that 65.42% of the consumers are not aware of
promotional campaigns done by Parle biscuits whereas 34.58% of the consumes
are aware of Parle biscuits promotional campaigns especially the advertisement of
G mane Genius. Therefore we can say that consumers are mostly not influenced
by promotional campaigns of Parle biscuits instead they are more inclined towards
the taste and pricing.
Have you seen any Promotional Campaign of Parle
34.58%
Yes
37
65.42%
No
70
Campaigns
A - No
B - Yes
Out of 34.58% samples, remembered following ad-campaigns.
(a) M.S. Dhoni & grandmother
: 60%
(b) Hrutik Roshan & girlfriend
: 10%
(c) Amir Khan & Dharsil
: 25%
(d) A boy flying with aeroplane
: 5%
PARLE
11.
Would you suggest any changes in Parle biscuit in the following fields?
a.
b.
c.
d.
e.
f.
Availability of products in different places __________

Style of packaging __________
More schemes to be associated __________
Price __________
Taste __________
Others (please specify) __________
From the chart we can conclude that 33.64% of the consumers suggest an
improvement in taste, 22.43% suggest an improvement in ofers and schemes,
17.76% suggest an improvement in price, 20.56% suggest an improvement in
packaging, 5.61% suggest an improvement in distribution channels of Parle biscuits.
Therefore Parle biscuits should take care of all the above suggestions in order to
become the best out of better.
Suggestions for Parle Biscuits
5.61%
Availability
6
E
33.64%
Taste
36
B
20.56%
Packaging
22
C
D
22.43%
Schemes
24
17.76%
Price
19
Suggestions
A - Availability
C - Price
B - Packaging
D - Schemes
E - Taste
Conclusions :
u
Britannia is the closet competitor to Parle.
Parle-G is the largest selling product of Parle Biscuits.
Consumers always choose a biscuits to consume on the basis of its taste.
Most of the consumers choose to buy a small pack of product for its
consumptions.
Consumers prefer to buy biscuits on their weekly shopping.
Most of the schemes dont affect consumers buying behaviour.
Most of the consumers of Parle are Bachelors and Children.
Recommendations :
u
Parle G and Hide n Seek are the only products of Parle that are on high
sales, so company should launch new products as well.

u
Company has good brand image in the minds of people, so it should make
sure that the customer stays loyal towards it.

u
The company should find out better promotional strategies. It should have
a brand ambassador that will strengthen the brand. The ads should be
broadcasted for a long time.
Company should periodically visit the consumers for gathering feedback from
its consumers to further enhance the products.
The company should give more stress on packaging of Parle biscuits.
Britannia is the closest competitor of Parle biscuits, so Parle biscuits should
come out with newer and better strategies to increase its sales. Parle-G is
going to face together competition with Britannias Tiger and Good day
biscuits.
The company should try to improve its distribution channel by making it more
efficient and cost effective. Britannia is the closet competitor of Parle, so
proper strategies should be implemented to stay ahead of the race.
Research Problem: To study the image of LG CTV

Research Objectives
1)
2)
To study how the customer perceives the LG range of CTV.

To identify the factors those influence the buyers to buy and non-buyers
not to buy LG CTV.
3)
To examine the effectiveness of various promotional activities.
Methodology
Sources of data
The data is basically primary in nature.
Methods
Our communication approach was basically structured questioning, that

is, personal interview with the aid of printed questionnaires.
Sample size
Convenience sampling: No sampling technique was employed in arriving

at a sample size. It is a convenience sampling suiting our use.
Consumer sample 30
Dealer sample size 6
Limitations
1)
2)
3)
4)
This being a convenience sample, the analysis may not be a true picture of
the target population.
Language problem, especially with the household respondents of
cosmopolitan areas.
Prejudice of some of the respondents.
For instance, one of the respondents had a bitter experience with respect
to LG VCR. For this reason, he is totally against the brand name LG and
could not consider even a single factor in favour of the LG CTV.
Low sample size of the dealers that is, we could not find more than 6
who were able to answer our questions in the areas surveyed.
ANALYSIS OF SIMPLE TABULATIONS

Customers questionnaire
1)
Are you a user of LG CTV?

Sample Size 30
Yes
Frequency
Percentage
20
66.7
No
10
33.3
67% of the respondents are users of LG CTV and 33% are non-user
2)
What influences your decision to purchase a Color TV?

Sample Size 30
Ranks
Attributes
Aesthetics
Price
Brand
Reliability
Performance
Advertisement
After sales service
II
III
5
5
5
2
12
0
1
1
8
8
3
6
2
2
3
6
5
7
5
1
3
The respondents ranked performance as the most important attribute influencing their
purchasing decision. The next important attributes are price brand and aesthetics.
3)
What influenced your decision to purchase / not to purchase LG CTV?
It is found that the non-users have not purchased LG CTV because of dissatisfaction
with its price and performance.
Surprisingly, price and performance are also found to be the factors that have
influenced the purchase of LG CTV.
4)
Which brand do you think is the toughest competitor to LG CTV?

Sample Size 30
Frequency
SAMSUNG
VIDEOCON
HAIER
PHILIPS
AKAI
AIWA
SONY
ONIDA
CANT SAY
Percent
11
1
5
2
1
4
3
3
3
36.7
3.3
16.7
6.7
3.3
13.3
10
10
10
From the table it can be clearly inferred that Samsung is the toughest competitor to
LG according to the perception of the consumers.
5)
Do you think LG CTV is a successful / unsuccessful brand?

Sample Size 30
Frequency
Percentage
Successful
26
86.7
Unsuccessful 4
13.3
87% of the respondents feel that LG CTV is a successful brand. Rest 13% find it to
be unsuccessful.
6)
Why do you think LG has been a successful / unsuccessful brand?

Sample Size 30
Successful
Range of Products
Frequency
Percentage
10
38.5
Range of Prices
Promotional Activities
6
10
23.1
38.4
As far as the reasons for LG CTV being a successful brand is concerned, 39% of the
consumers feel that the success is due to the range of products offered by LG, 38%
feel its due to the range of prices and the rest 23% feel that its due to the promotional
activities carried out by LG.
Sample Size 30
Successful
Range of Products
Range of Prices
Frequency
Percentage
1
25
2
50
1
25
Among the people who find LG an unsuccessful brand, 50% feel its due to the range
of prices offered by LG, rest 25% each feel its due to the range of prices and
promotional activities respectively.
7)
Based on the price range what impr3eession do you carry of LG CTV?
Sample Size 30
Economical
Costly
Frequency
Percentage
22
73.3
8
26.7
73% find LG to be an economical brand and the rest 27% find it costly. Thus the
overall impression of LG in CTV segment is that of an economical one.
8)
Give the size of the LG CTV you own (Users Questions)

Sample Size : 20
14
20
21
25
29
Frequency
3
2
11
3
1
Percentage
15
10
55
15
5
We found that the most preferred size by 55% respondents was 21, followed by 14
and 25, with 15% each.
9)
Which of the following additional attributes do you perceive as most

important in your CTV?
Sample Size 28
Net-Savvy technology
Locking Systems
Picture-In-Picture
Frequency
Percentage
16
57.1
7
25
5
17.9
57.1% of the people prefer to have Net Savvy Technology as an additional attribute
in their CTVs. Following this are locking systems with 25% and Picture in Picture
with 17.9%.
10)
What do you think of the advertisement of LG CTV?

Sample Size 29
Impressive
Satisfactory
Unsatisfactory
Frequency
9
19
1
Percentage
31
65.5
3.4
65.5% of the respondents find the advertisements satisfactory while 31% and 3% find
it impressive and unsatisfactory respectively.
11)
You like / dislike the advertisement because of

Sample Size 30
Like
Model / Celebrity
Presentation
Slogan
Frequency
Percentage
10
35.7
6
21.4
11
39.3
Sample Size 30
Dislike
Model / Celebrity
Presentation
Slogan
Frequency
0
3
0
Percentage
0
100
0
Out of the sample size of 30, only 3 people disliked the ad and all of them disliked it
because of the presentation (no ad was specifically mentioned).
12)
Which do you think is the most striking media to advertise LG CTV?

Sample Size 30
Newspaper
Television
Frequency
4
26
Percentage
13.3
86.7
87% of the respondents asserted that television is the most striking media to advertise
LG CTV while the rest 13% felt that the newspaper is the best media.
13)
Do the various schemes / promotional activities affect you purchase
plans?
Sample Size 30
Yes
No
Frequency
19
11
Percentage
63.3
36.7
63% of the respondents felt that the various schemes offered by the company would
affect their purchase decision, while the rest 37% did not feel so.
14)
If you go for re-purchase of TV will you prefer LG CTV?

Sample Size 30
Yes
No
15)
Frequency
19
11
Percentage
63.3
36.7
Do you agree / disagree with the Punch line of LG?

Sample Size 30
Agree
Disagree
Frequency
25
5
Percentage
83.3
16.7
83% of the respondents agree with what the punch line of LG has to say and the rest
17% disagree with the statement that LG is the best.
Demographics
Age
Frequency
5
10
7
8
Age Group
18-25
26-30
31-40
>40
Percentage
16.70
33.30
23.30
26.70
Frequency
2
15
8
5
Percentage
6.70
50
26.70
16.70
Occupation
Occupation
Student
Service
Business
Others
Sex
Sex
Male
Female
Age Group
28
2
Percentage
93.30
6.70
Annual Income
Annual Income
<1,00,000
1,00,000 1,50,000
1,50,000 2,00,000
2,00,000 2,50,000
2,50,000 3,00,000
>3,00,000
Frequency
12
10
5
1
1
1
Percentage
40
33.30
16.70
3.30
3.30
3.30
Dealers Questionnaire
1)
What influences your customers decision to purchase a LG CTV?
Ranks
Aesthetics
Price
Brand
Reliability
Performance
After sales service
2(33.3%)
2(33.3%)
2(33.3%)
II
4(66.7%)
2(33.3%)
III
1(16.7%)
1(16.7%)
3(50%)
1(16.7%)
Accordingly to the dealers, the top three attributes that influence their customers
purchase decision are: performance, brand name and price.
2)
Which size of BPL CTV do the customers purchase the most?

Sample Size : 6
Size
14
20
21
25
29
Frequency
1
1
4
0
0
Percentage
16.7
16.7
66.7
0
0
21 is the most preferred size of the LG CTV. It is accepted by 66% of the dealers.
3)
Which do you think is the toughest competitor to LG?

Sample Size : 6
Competitors
Samsung
Videocon
Onida
Frequency
4
1
1
Percentage
66.7
16.7
16.7
Samsung is found to be toughest competitor to LG CTV. This is a true picture of the

national scenario. Next come Videocon and Onida as felt by 17% of the Dealers.
4)
Where do you rank the following CTVs in terms of

Sample Size 6
Brand Name
Aesthetics
Range of Products
Range of Prices
Performance
DPA
CPA
After Sales Service
LG
1
4
2
2
1
1
Samsung
2
3
2
4
2
3
Onida
1
2
1
1
Videocon
2
1
1
Sansui
Philips
2
1
1
1
1
1
2
2
The best in terms of

Brand Name
Aesthetics
Range of Products
Range of Prices
Performance
Dealers Promotional Activities
Consumers Promotional Activities
After Sales Service
5)
:
:
:
:
:
:
:
:
LG, Samsung
Onida
LG
LG, Philips
LG, Onida
Onida
Onida, Sansui
Onida
Do you think LG CTV is a successful / unsuccessful Brand?

Sample Size 6
Frequency
Percentage
Successful
5
83.3
Unsuccessful 1
16.7
83% of the dealers accepted that it is a successful brand and 17% felt it is an
unsuccessful brand.
6)
Why do you think LG CTV has been a successful / unsuccessful Brand?

Sample Size 5
Successful
Range of Products
Range of prices
Distribution Network
Frequency
1
4
0
0
Percentage
20
80
0
0
80% of the dealers felt it is successful because of its range of prices. 20% felt it is
because of the range of products. Promotional activities and distribution network
have nothing to do with the success of LG CTV.
Only one dealer found the brand unsuccessful because of its range of products.
7)
Are the consumer sales promotional activities of LG effective?

Sample Size 6
Yes
No
Frequency
4
2
Percentage
66.7
33.3
67% of the dealers are happy with the effectiveness of sales promotional activities
and 33% are not.
8)
Are you satisfied with the current media used by LG for advertisement?
Sample Size 6
Yes
No
Frequency
5
1
Percentage
83.3
16.7
83% are happy with the current media used for advertisement and 17% are not happy.
9)
Do you think LG should go for financing the purchase of the Colour TV?
Sample Size 6
Yes
No
Frequency
4
2
Percentage
33.3
66.7
67% of the dealers wanted LG to go for financing the purchase of the CTV.
10)
Are you satisfied with the dealer incentive schemes provided to you by
LG vis--vis the competitors?
Sample Size 6
Yes
No
Frequency
4
2
Percentage
66.7
33.3
It was found that 67% of the dealers were satisfied with the incentive schemes
provided to them by the company. But 33% of the dealers were not satisfied.
11)
Do you think the latest technological changes introduced in the LG CTV

will result in the boost of its sales?
Sample Size 6
Frequency
Percentage
Yes
4
66.7
No
2
33.3
67% of the dealers thought that the technological advances would really affect the
sale of the CTV. There were 33% of the dealers who felt that it would not affect the
sale.
Cross-Tabulation
1)
The objective of this tabulation is to find the break-up between the

percentage of users / non-users perceiving LG as a successful brand.
Users
Non-users
2)
Successful
17
9
26 (86.7%)
Unsuccessful
3
1
4 (13.3%)
20 (66.7%)
10(33.33%)
The main objective of this cross-tabulation is to show how the choice of

attributes of CTV vary with income levels.
Annual Income
Aesthetics
Price
Brand
Name
Reliability
Performance
Advertisement
After
Sales
Service
<1,00,000
1,00,000
1,50,000
1,50,000
2,00,000
2,00,000
2,50,000
2,50,000
3,00,000
>3,00,000
2
3
1
1
6
6
1
3.30%
1
20%
1
20%
3.30%
3.30%
3.30%
43.30%
3.30%
Finding
It is very clear from the table and the graph above that the lower income groups (i.e.
1,00,000 and 1,00,000 1,50,000) give more preference to performance. Where the
higher income groups (i.e. 2,50,000 3,00,000 and >3,00,000) give more preference
to brand name.
The objective of this cross-tabulation is to know the break-up between
the number of users / non-users going for re-purchase of LG CTV?
User
Non-user
40%
33.3%
16.7%
3.30%
3)
Yes
14
5
19 (63.3%)
No
6
5
11 (36.7%)
20 (66.7%)
10(33.33%)
6.70%
Finding
We find that out of 20, 6 of the users do not want to go for re-purchase of LG CTV.
The reasons are:
The lower income group people find the range of prices and promotional
schemes offered by other brands more attractive vis--vis LG.
The higher income groups people feel that the quality of LG is not up to
the expected level of standards. The trust associated with the brand name
is falling.
Surprisingly, half of the non-users are willing to go for LG as their repurchase choice. This shows the privilege enjoyed by LG as the market
leader in the CTV segment and also the minds of the people.
4) The objective of this cross-tabulation is to know how many of the users have
really been affected by the various purchase schemes offered by the
company.
Users
Schemes
Affected
12
Not Affected
8
Finding From the above table it is very clear that 60% of the users are affected by the
schemes and 40% are not.
RECOMMENDATIONS
Brand Image Should be Maintained
LG enjoys a good brand image, especially due to its reputation of conforming to
quality in the consumer electronic goods market. This story dates back to the time
when there were not many brands in the amrekt and LG was the only brand, which
got hugely popular especially due to its quality levels. But lately it has been noticed
that
Their quality is going down

No prompt after sales service
Less incentive schemes to dealers compared to competitors.
So our recommendation to LG is that if they want to retain their market share it

becomes vital for them to maintain the brand image and the trust which they have
built over the years.
Better Advertisements
Another finding of our survey was that people were in a very ambiguous state when
asked as to what they thought of the advertisements. Even on being told what they
were, the respondents were not able to recall them exactly. Thus, it is necessary to
come out with more attractive ads. Also, the number and the frequency of the ads has
to be increased on the television channels.
Quality Checks
In the past LG could boast of its best quality. But today we find that both the
customers and dealers have too many complaints with the quality of the product.
Thus we think LG should go for more stringent quality checks.
QUESTIONNAIRE FOR CONSUMERS
Date:
Q.No.
Dear Sir / Madam,

We the students of MI are conducting a market research to know your brand
perception in the colour TV segment. Kindly extend your cooperation in filling this
questionnaire and enable us in doing the research successfully.
1)
Are you a user of LG colour television?

Yes.
No.
If no, specify which brand __________
2)
What influenced your decision to purchase a Colour TV?

(Rank the following in the order of preference) 1 Best, 2 next best and so
on.
___
___
___
___
___
___
___
Aesthetics / Appearance
Price
Brand name
Reliability
Performance
Advertisement
After sales service
3)
What influenced your decision to purchase / no to purchase LG Colour TV?

(Please select any two from above)
i.
_____________________
ii.
_____________________
4)
Which Brand do you think is the toughest competitor to LG?

Onida
Videocon
Haier
Philips
Akai
Aiwa
Sony
Samsung
Why? ______________________________
5)
Do you think LG Colour TV is a

Successful brand
Unsuccessful brand
6)
Why do you think LG Colour TV has been a successful / unsuccessful brand?

Range of products
Range of prices
Promotional activities
7)
Based on the price range what impression do you carry of LG CTV:

Economical
Costly
8)
Tick the size of LG Colour TV you own (users questions)

( ) 14
( ) 20
( ) 21
( ) 25
( ) 29
9)
Which of the following additional attributes do you perceive as most

important in your Colour TV?
Net savvy technology (e.g. Web TV, Multi-media TV, etc.)

Locking systems (e.g. Child Lock, Volume Lock)
Picture in picture
Any others, specify _________________
10)
What do you think of the advertisement of LG?

Impressive
Satisfactory
Unsatisfactory
11)
You like / dislike the advertisement because of:

Model / Celebrity
___________
Specify the celebrity
___________
Presentation,
___________
What you liked / disliked
___________
Slogan
___________
Any other (specify)
___________
12)
Like
____________
Dislike
____________
____________
____________
____________
____________
Which do you think is the most striking media to advertise LG CTV?

Newspaper
Magazines
TV
The Internet
Hoarding
Radio
13)
Do the various schemes / promotional activities affect your purchase plans?

Yes
No
14)
If you go for re-purchase of TV, will you prefer LG Colour TV?

Yes
No
15)
Do you agree or disagree with the punch line of LG --------------------
A word about yourself
Name
Address
Age
40
Occupation
_______
Sex
Annual Income
:
:
:
(a) 18-25
Student / Service / Business / Any other (specify)
:
:
Male / Female
1)
<100000
2)
100000 150000
3)
150000 200000
4)
200000 250000
5)
250000 300000
6)
> 300000
(b) 26-30
(c) 31-40
(d) above
Thank you
QUESTIONNAIRE FOR DEALERS

Date:
Q.No.
Dear Sir / Madam,
We, the students of MI are conducting a market research to know the
consumer perception and sales promotion effectiveness of LG CTV.
Kindly extend your cooperation in filling this questionnaire and enable us to
conduct the research successfully.
1)
What influences your customers decision to purchase a LG Colour TV?

(Rank the following in the order of preference) 1 best, 2 next best, etc.
__Appearance / Aesthetics
__Price
__Brand name
__Reliability
__Performance
__After sales service
2)
Which size of LG CTV do the customers purchase the most?

( ) 14
3)
( ) 20
( ) 21
( ) 25
What do you think is the toughest competitor to LG?
( ) 29
Onida
Videocon
Haier
Philips
Samsung
Akai
Aiwa
Sony
Why? ___________
4)
Where do you rank the following colour TVs in terms of (Rank the top 3
for each)
LG
Onida
Videocon
AIWA
AKAI
Samsung Haier
Brand Name
Aesthetics
Range of Products
Range of Prices
Performance
Dealer Promotional
Activities
Consumer
Promotional
Activities
After Sales Service
5)
Do you think LG Colour TV is a

Successful brand
Unsuccessful brand
6)
Why do you think LG Colour TV has been a successful / unsuccessful

brand?
Range of products
Range of prices
Distribution Network
Promotional activities
7)
Are the consumer sales promotion activities of LG effective?
8)
Yes
No
If No, why? _________________________________
Are you satisfied with the current media used by LG for advertisement?
Yes
No
9)
If No, which do you think is the most striking media for LG to advertise?
Newspaper
Magazines
TV
The Internet
Hoarding
Radio
10)
Do you think LG should go for financing the purchase of the Colour TV?
Yes
No
11)
Are you satisfied the latest technological changes introduced in the LG

CTV will result a boost in its sales?
Yes
No
Shop Name
Address
Thank you.
:
:
Illustration:
Step 1: Defining research problem
identifying research objectives
and
Research Problem To study market

penetration of Surf Detergent Powder in &
around Pune .
Research Objectives
To find out:
(a) Which is the most commonly used
detergent in the market?
(b) What influences people to buy a
particular brand?
(c) What is the penetration level of Surf in
the market?
(d) To identify customer needs.
Step 2 :
Developing research plan
(a) Research Design Descriptive
(b) Sources of secondary data From

Indian retailers association, name and
addresses of grocers, supermarkets
were collected, from whom name and
addresses of detergent users were
collected.
Sources of primary data Household
samples
(c) Research approach Focus group
interviews
and
individual
sample
interview.
(d) Research instruments Structured
questionnaire
(e) Sample Plan
Universe Residents
of Pune
Frame Detergent
users
Sample size 52 / 40
(52 list of detergent
users from whom 40
Surf
users
were
picked up)
Method Systematic
sampling
Unit Household
(f) Contact method TI / PI
Questionnaire for households samples.
Dear Sir / Madam,
The students of Management studies,
Pune are conducting this survey, as a part of
their project in the field of Research. The
purpose of this activity is to measure the
penetration of Surf in Pune.
1. Do you wash your clothes at home?
Yes
No
2. Do you use Surf?
Yes
No
3. If Surf, which sub-brand do you use?
Surf Excel,Surf Excel Blue
Surf Ultra
Surf Super Excel
Surf Excel Matic

4. What influences your decision while
buying Surf? (Tick as many as
applicable)

Whiteness
Lather
Easy on hands
Easy on fabric
Stain removal
Any other (please specify)

5. Have you seen any promotional
campaign of Surf?
Yes
No
If yes, which one does you like the
most?
Lalitaji
Surf Excel hai na
Dho daala ,Daag Achhe Hai !Hai

Na ?
Dhoondhthe Reh jaaoge
Any
other
(please
specify)
________
6. Do the various schemes associated with
Surf affect your purchase?
Yes
No
7. Would you suggest any changes for Surf
in the following fields?
Availability in different quantities
Style of packaging
More schemes to be associated

with the brand
Pricing
Any other (please specify) ____

8. Why not Surf?
Price
Quality
Packaging
Fewer schemes as compared to

other brands
Any other (Please Specify) _

9. Which detergent does you most
frequently use? (Tick as many
applicable)
Ariel
Nirma
Wheel
Rin
Tide
Henko
Any
other
(please
specify)
_______
10. What influences you to buy your
preferred brand?
Friends
Neighbours
Advertisements
Self Experience
11.
12.
13.
14.
15.
Any other (please specify) ______

While purchasing a detergent, what
quantity do you usually go for?
Less than 1 Kg
1-2 Kg
2-3 Kg
3-4 Kg
More than 4 Kg
How frequently do you purchase
detergents?
Once a week
Once a fortnight
Once a month
Once in two months

You prefer your detergent in:
Sachets (10 gm, 20 gm, 50 gm,

etc)
Packets
Jars
Bigger containers
Any
other
(please
specify)
_______
If your preferred detergent is not
available, you go for:
First Choice ______________
Second Choice ___________
Do you keep a stock of detergents in
your home?

Yes
No
16. Most preferred detergent among people
you know
Surf
Ariel
Nirma
Wheel
Rin Tide
Henko
Any
other
(please
specify)
_______
Something about you
Name : Mr./Mrs./Ms. _________
Age Group :Kindly tick whichever is applicable
< 25
25-34
35-44
45 and above
Address:
Occupation:
Do you own a washing machine?
Yes
No
Who washes the clothes in your house?
Yourself
Maid
Any
other
(please
specify)
_______
How many members are there in your
household?
_________________________________
Income Group: (Tick whether is applicable)
< 5000
5,001-10,000
10,001-15,000
15,001 and above
Thank you
Step 3: Forming
temporary
marketing
organization for collection of market data
Project Leader - 1
MR Officer (Not required)
Investigators 1
Time to complete the project since 52 / 40
samples to be interviewed and one sample
might take 30 minutes and 30 minutes could
be consumed in traveling, in one day, 8
samples could be interviewed. Hence project
will be over on 5th day. No. of investigators
needed is only one.
Step 4 & 5 :
Data analysis by using SPSS.
Data presentation and preparation of
Research Report.
Sample Composition
In all, group members as a part of our survey
visited 52 households. 12 of them revealed
that they were entirely dependent on local
washermen or launderettes. Therefore these
respondents were not considered for answer
the questionnaire. The remaining 40 thereby
formed the sample size of our survey.
Sample size = 40
Sample Size = 40
Sample Size = 40
Sample Size = 40
Sample Size = 40
Sample Size = 40
Sample Size = 40
Findings of Survey
Sample Size = 52
As a part of our survey, we visited 52 houses.

It was found that 12 households gave all their
clothes to launderettes, while 40 households
washed their clothes at home. Since the
objective of our survey was to find out which
detergent is popular in the households, we did

not take into consideration the 12 who
depended entirely on launderettes.
Sample Size = 40
Of the 40 people interviewed, it was found that

21 households used Surf, while 19 of them
washed their clothes with other detergents.
This is a clear indicator of the popularity and
the presentation of this particular brand in the
consumers mind and in the market.
3. Sub-brands of Surf used
Users of Surf 21
Of the 21 consumers using Surf, it was found

that Surf Excel & Blue as a sub-brand was the
most commonly sued, with 17 consumers
stating it as their preference.
This was
followed by Surf Ultra and Surf Super Excel
with 2 consumers each. However, no users
could be detected for Surf Excel Matric.
4. Influential factors while buying Surf
Sample Size = 21
As indicated above, whiteness that the

detergent provides, say 8 of the consumers, is
one of the most potent influences while buying
the detergent. The second most important

influence is the fact that it is easy on the fabric,
say 5 of them. Other influential factors are its
gentleness on hands and its good stain
removing capacity (Daag dhoondte reh
jaaoge).
5. Consumer awareness with respect to
the advertising campaign of Surf.
Of the consumers surveyed,

awareness
with
Sample
Size = 21
respect to advertising by Surf was cent per
cent-that is, all consumers using Surf were
aware of its promotional campaigns and all
had seen Surf ads at one point of time or the
other. Of the different types of ads aired by
the media, the lalitaji ad held the greatest
retention power and linking, with 7 out of the
21 consumers liking it the most, followed by
the ad for Surf Excel and Dhoondthe Reh
Jaaoge, with a fan following 5 consumers
each.
6. Persuasive Powers of various

Schemes, which are launched by Surf to
promote sales, are generally not THE major
criteria when the consumer goes in for a
purchase. This is also reflected by the survey
in which 13 out of 21 of the consumers
supported the fact. Only 8 were those who
were affected by the schemes propagated by
Surf.
7. Suggestions provided by the consumers
The following changes were suggested in the
any other category.
Demands for a measuring scale so as to

avoid wastage of powder.
Change in the color of the detergent
powder.
Fragrance of the detergent.
8. Reasons for not using Surf.
Sample Size = 19
Price of the detergent and association with

fewer schemes were the two primary reasons
for which consumers preferred other brands to
Surf. Price was a factor for users of cheaper
washing powders such as Nirma, Rin and
Wheel.
Users of Henko, Tide and Ariel
insisted that the quality of their detergent was
superior to that of Surf.
9. Detergents (other than Surf) frequently

used by consumers
Sample Size = 24
Amongst many existing brands available

(excluding Surf) in the market, the most
frequently used ones are Rin and Wheel
followed by Ariel with others (Local)
constituting the rest of the market. In the chart
indicted above, 19 were nonusers of Surf,
while 5 of them also preferred an additional
detergent besides Surf.
10. Major influencers while making a purchase
Factors
No.
Friends
3
Neighbours
4
Advertisements
13
Self-experience
19
Others
1
Total
40
While conducting the survey, personal
experience of using the product along with
many others over a period was major influence
while indulging in the purchase. Apart from
this, effective advertising was a close runnerup and was largely responsible in influencing
people while buying their preferred brand.
11. Quantity usually purchased

Quantity
Less than 1 kg
1-2 kg
2-3 kg
3-4 kg
More than 4 kg
Total
No.
10
20
6
3
1
40
As is predictable, due to the fact that the

survey was done in an area which was middle
class one, the housewives usually went in
for the 1-2 kg pack and the frequency of
purchase was once in a month which is
depicted in the chart above.
12. Frequency of purchase

Frequency
Once a week
Once a fortnight
Once a month
Once in two months
Total
No.
3
11
23
3
40
Usually households preferred to buy their

stock of detergent once in a month, as is
mostly the case with all stock being ordered
along with the ration that comes monthly. But
still many households also buy it fortnightly.
Packets (500 gm, 1 kg, 2 kg) are the outright
winners in this section with more than 50%
consumers in this category preferring this
particular style of packaging. However, Jars
were also preferred because of their multiutility purpose after using the primary product.
14. Alternative brand of detergent
First choice
Brands
Rin
Wheel
Surf
Tide
Ariel
Henko
Nirma
Total
No.
9
8
10
1
7
4
1
40
Second choice
Brands
Rin
Wheel
Surf
Tide
Ariel
Henko
Nirma
Total
No.
11
12
5
6
3
1
2
40
There were 10 non-users of Surf who

preferred it as their first choice of purchase in
case of non-availability of their preferred
brand. Users of Surf voted for Ariel, Rin and
wheel as their first choice given the same
situation.
15. Stock of detergents
Sample Size = 40
More than 50% of the households did not keep

a stock of detergents at home and resorted to
purchase only when the need arose.
16. Preferred
detergent
acquaintances of consumers
amongst
The general impression that we get after

conducting the survey is that Surf rules the
market because it was revealed that amongst
the acquaintances also Surf was the most
popular brand followed by Ariel and Nirma.
Findings
In Q.No. 7, eight respondents stated that

they would like more schemes to be
associated with Surf. However, when
they were asked that what change
would they suggest in their detergent
(Q.No. 8), only 5 of them suggested
more schemes.
Surf Excel (17/21) is preferred by the
consumers because of its extraordinary
whiteness (8/21) and the fact that it is
easy on the fabric (5/21).
When it comes to housewives the
verdict is almost equal with 12 saying
Yes and 11 saying that they do not use
Surf but when it comes to students, Surf
is the clear winner with 6 out of 7
favouring the product.
Of the 40 consumers surveyed, 21 Surf
and of those 21, 19 were women as Surf
is more a product that homemakers use.

Of the 19 non-users, 16 again were
women with the rest being men who had
genuine knowledge about the product
and who had used it at one moment of
time or another.
Of the users of Surf, all of them were
more or less equally distributed when
categorized according to the income
group with the higher income group
categories preferring Surf a little more as
Surf is costlier than most of the other
brands (13/21).
An interesting fact is revealed, 4 suers
stated that some of their clothes were
washed either by themselves or by their
maids; however the expensive clothes
were given to launderettes.
We also find that the trend of people
who are in the different categories is
almost the same with almost an equal
number in each category.
One interesting observation may be
possible. It is seen that the less than 25
age group of users are more inclined to
sue Surf and as the age group increases
the number of users decrease, this may
be due to the new positioning that Surf
is using where it is targeting the younger

generation
too,
through
its
advertisements.
Surf is popular with acquaintances of
both the users and the non-users. In the
acquaintances of users section Ariel
follows (5/21) while in the alternative
category Nirma (6/19) and Ariel (4/19)
are preferred widely.
Recommendations for designing marketing

strategy
Of the sub-brands, Surf Excel was the

most recognized one, so the company
ought to take some measures to make
the consumer aware about other subbrands.
If possible, pricing should be reviewed,
with many consumers citing it as a
negative factor.
Surf being viewed as a premium product
could come up with a lower priced subbrand for more rural market penetration
to compete with Wheel, Nirma and so
on.
More schemes should be introduced to
attract non-users.
Advertising
standards
should
be
maintained, if possible improved, as
advertisements
have
contributed
immensely to the awareness level and
usage of the product.

MR

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MARKETING RESEARCH

Chapter 1: INTRODUCTION TO MARKETING

(a) Basic or Pure Research: The research

Government of India, through Census, does

towards animal welfare and plant kingdom

Problem Oriented Research This type of

NATURE OF MARKETING RESEARCH

The nature of marketing research is very much

serving customer or clients right from

III OBJECTIVES OF MARKETING RESEARCH

Rs. 1700 Cr (2007)

(ii) Growth Rate

(iii) Target Market

(iv) Product Situation

Current and projected

(a) Industry Sales

(b) Parles market share

(c) Average Price per Unit MRP

(d) Average cost per unit

Sales volume in units

(g) Total Gross Margin

(h) Depreciation, Interest & Tax

Net profit (g-h)

(j) Advertising & Promotion cost 3% of sales 10.5

[Case study of Reliance Petroleum for

The most innovative firms define innovation broadly.

Strengthen existing brands like Parachute and

A focus on health and wellness, with close to 65

MARICO Successful FMCG Company

Profit before tax

During the year, Kaya clocked revenues of RS. 100 crore.

Estimated Key brands Market

Most Trusted Brands, Top 10

Trends in Retail Sales,(2009)

Total Retail Share of

Marketing Research helps the marketer in

is Rs8000 less than cheapest available bike

Chocki.But it did not market aggressively. Now

To study price affordability of target market,

BENEFITS OF MARKETING RESEARCH

HUL as Winner in the Market?

Market Size: Rs. 8875 Crore

Quarter ended 2008

Quarter ended 2008

Quarter ended 2008

Category: Skin Care

Quarter ended 2008

Category: Packaged Tea

Quarter ended 2008

HUL as second-best in a couple of segments

Quarter ended 2008

Quarter ended 2008

(b) Determining whether economics of scale

(i) Chances of improvement of current

--- Single brand product retailing would cover

(1) In corporate India total number of companies

Corporate Indias turnover is few billion $ whereas

(2) Narrow conceptions: MR is perceived as data

(4) Late results - well design and plan survey

(a) Improper research techniques- suppose

2 MR is the systematic gathering recording

Chapter II. Sources & collection of

Name of the Source

Commercial Intelligence &