S2: M.R. APPLICATIONS, M.R.

PROCESS

PGP I Term III (2016-17)

Research for Marketing Decisions

Prof. Avinash Mulky

Dewdrop (B): Choosing a research agency

Criteria for evaluating the design (page 1 & 2 of the case)

Your comments if any

Summarise each agencys proposal

Rate each proposal on the criteria

Which agency will you choose, why?

Brand image: Identifying associations

Brand
 Brand image: Types of brand associations

Organisational Brand
associations personality

Country of Attributes
origin Price- Quality User
Functional Benefits imagery
Uses

Symbols

Hedonic Benefits
Symbolic
benefits

Source: Adapted from Aaker and Joachimsthaler ( 2002)

Measuring brand parameters

Brand awareness
Recognition, recall

Brand image
Top 5 words that come to your mind when I mention brand X

Brand personality
Sincere, Exciting, Competent, Sophisticated, Peaceful, Passionate

Brand Loyalty
Behavioural loyalty, Attitudinal loyalty
PURCHASE PANELS
 Household Purchase Diary
Please fill in the details on all the products
purchased during this month

Members Name

Membership No.

Visited By: sign Date Area

Month
Year
Remarks
Members
Signature
IMRB
92, Pantheon Road, Egmore, Chennai-600008
Household purchase diary:

Date of Brand Name Colour/ Pack No. of Special Offer if any

Purchase Variant Size packs
Summary results: Oct and Nov. 2016

Purchases in Oct Purchases in Nov

Brand A 200 (20%) 250 (25%) +5%

B 300 (30%) 270 (27%) -3%

C 350 (35%) 330 (33%) -2%

D 150 (15%) 150 (15%) 0%

1000 (100%) 1000 (100%)

 Brand Switching Matrix

During November

Bought A Bought B Bought C Bought D Total

Bought A 175 25 0 0 200

Bought B 0 225 50 25 300

Bought C 0 0 280 70 350

Oct
Bought D 75 20 0 55 150

250 270 330 150 1000

Source: Churchill, 2001

 Brand Loyalty

During November

Bought A Bought B Bought C Bought D Total

Bought A 0.875 .125 0 0 1.000

Oct
Bought B 0 .750 .167 .088 1.000

Bought C 0 0 .800 .200 1.000

Bought D .500 .133 0 .367 1.000

Source : Churchill
 Dewdrop soap: Cumulative penetration of brand

34%

30%

Cum
Penetration 20%

10%

4 8 12 16 20 24 28 32 36
Weeks after launch
Repeat purchasing rate calculation
(Hypothetical example: Brand D=Dewdrops;
other brands are R and S)
Buyer W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11
1 D D R D R R R R D R R
2 D S S S S S
3 D D D D D D D D D D
4 D D R D R
5 D D D D D
6 D D R D R R S R R
7 D S S S S
Cum 2 4 7
buyers
Repeat purchase rate 6/10=60% 5/10=50% 4/10=40% 4/10=40%
 Repeat purchase rate of Dewdrops

60%
Repeat
purchase 40%
rate
25%
20%

4 8 12 16 20 24 28 32 36
Weeks after launch
Buying rate index for Dewdrops

Non-buyers 59% volume = 0.9

of 66% 59% 66% buyers
Dewdrops

41% volume = 1.2

41% 34% buyers
Buyers of 34%
Dewdrops

All buyers Total volume

in the in the
category category
Parfitt- Collins Model
Market share estimation of Dewdrops

Estimated x Repeat- Buying rate

Long run x
penetration purchasing rate index
market share =

= x 25% x 1.20
34%

= 10.2%
Choosing a research agency: General criteria

Understanding of our research brief

Professional capability of the agency
Facilities and services available to us
Reputation for quality
Personal attention we will receive
Ability to meet deadlines
Pricing structure
Segmentation

Which group of customers will find our product particularly

attractive?

How can we describe this group?

Geography: Where they live
Demographics: Age bracket they are in; Life cycle stage; Gender;
income category; Socio-economic classification; Generation;
Occuptaion
Psychographics: Personality; Lifestyle; Values
Benefits they want
Behaviour: Occasion of purchase; Usage status-User/Non-user; Usage
rate; Buyer readiness state; Loyalty status
Segmenting Consumer Markets

Descriptors Segmentation bases

Geographic Benefits desired

Demographic Behavioral characteristics

Psychographic
Segmentation in B-B Markets: Nested approach

Demographics (Geography, Industry, size)

Operating variables (Technology, Use status, capabilities)
Purchasing approaches
(centralization, power structure, buyer-seller relationship, purchasing policy, purchasing criteria)
Situation factors (urgency, application, size)

Personal characteristics of buyers

(personal style, risk profile)
Positioning: Vertical positioning
Benefit associated with measurable performance or quality

VIP

Executive
Mid-size

Compact
Vertical positioning

Higher level of
Higher price feature/performance

More is better for some

consumers
Consumer willingness to pay
changes with
feature/performance level

Lower level of
Lower price feature/performance
Positioning: Horizontal positioning

Choice depends on taste or attitude based on psychographics,

lifestyle, or underlying attitude

Sedan Price sensitivity not an issue SUV

More is not necessarily better for everyone

 Product

Augmented product/ service

Expected product/service

Core Benefit
Place: Channel

Manufacturer

Creating Fulfilling Pre-sales Market

demand demand and after information,
sales service feedback

Consumers
 Modelling retail sales

Revenue

Traffic Conversion Basket size Loyalty/repeat

rate purchase

Location Customer Price Service

Brand service Variety Satisfaction
awareness Positioning Assortment Post sale-
Incentives Incentives Incentives

Source: Soman, N-Marandi (2010)

 Motivation Need for a new cereal
research study
Crisp, strongly nutritional, tan-gold colour cereal
Concept test appeals to all members of family

Two ad campaign designs tested

Test market
Most useful protein

Fun of life
Purchasers are larger families with
Post launch survey
higher income

Year 1: 45% Aware, 13% of aware purchased
Telephone survey
Year 5: 61% Aware, 33% of aware purchased
Years 1 to 5
Kelloggs: 97% Aware, 96% of aware purchased

Year 3: On air test 5% remembered ad (benchmark in category= 25%)

of new commercial

Cereal consumers have no clear distinguishable

Consumer panel
characteristics

Focus group: RTE cereals more tasty but less nutritious

attitudinal study compare to hot, prepared breakfast

Special K had spent $ 4.1 mn, Agency

Secondary data
proposed $3.7 mn for Life
Source: Dolan (1991)
Research technique Data sought Marketing decision assisted
Motivation research Consumer preferences Need for new cereal

Concept test Preferences for different concepts, Product design

intention to buy
Product test Satisfaction with product attributes, Product formulation, package
benefits and performance design
Test market experiment Market share, awareness, trial repeat Go/No-go national, advertising
rate approach
Surveys Profiles of Life and RTE cereal buyers; Performance monitoring,
Awareness, trial, repeat buying; Targeting and positioning
Consumers reason to buy; consumer
attitudes
On-air-test Advertising recall Advertising content

Panel data Demographic profiles Product positioning

Focus group (attitudinal Reactions to products and Advertising content

study) advertisements
Secondary data Competition advertising expenditure Advertising budget