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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 ad-campaign 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 is to get 4 million youth registered
across 35 cities before general elections in
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.
(Taaza tea)This is a successful campaign
because within 7 weeks of its launch,the
website has managed to register
70,000younsters.

(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, 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 : Health conscious


consumers

(iv) Product Situation : Current and


projected profits loss statement

0-7-8 08-09

(a) Industry Sales 1700 Cr 2000 Cr

(b) Parle’s market share 25% 425 Cr

(c) Average Price per Unit MRP / Stokists /


Retailer
1200 ml 10 7 8
500 ml 6 4.50 5

(d) Average cost per unit


1200 ml 5.60
500 ml 3.60

(e) Gross contribution (c-d) 1.4/0.90


% 20%

(f) Sales volume in units : 56.6 Cr 500 ml


60% 500 ml + 40% 1200 ml 24.2 Cr 1200
ml
(g) Total Gross Margin 20% 85 Cr

(h) Depreciation, Interest & Tax


50% of GM 42.5 Cr

(i) Net profit (g-h) 42.5 Cr (10%)

(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%


3.15 Cr

(m) Net operating profit (i-j-k-l) Amount 7.85


Cr
% 1.84%

(b) Monitor marketing performance and


improve impact of marketing
programme.
(Example of launching of Hum Tum
movie)
(c) To identify market potential
[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]
d)Stress on innovation for market
growth&profitability.
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 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

2500

2000 1907

1557
1500
1144
1007
1000 888

500

0
2003-04 2004-05 2005-06 2006-07 2007-08

CAGR 21 per cent


Profit before tax
250

205
200

150
150

98
100
74
65
50

0
2003-04 2004-05 2005-06 2006-07 2007-08

CAGR 33 per cent

Net profit

180 169
160

140

120 113
100 87
80 70
59
60

40

20

0
2003-04 2004-05 2005-06 2006-07 2007-08

CAGR 30 per cent


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 company’s 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 Estimated Keybrands Market Closet


Hair Care Market share Competitor
space Size (Rs. (%)
Crore)
Value-added 200 Parachute 85 Clinic
coconut oil advansed
Jasmine
Amla oil 350 Shanty 10 Dabur,
Badam Amla bajaj
Non-sticky 250 Hair and 18 Keo
hair oil care Karpin
Bajaj
Post-wash 50 Silk-n-Shine 30 Sunsilk,
conditioner Livon
Hair gel and 80 Parachute 30 Brylcreem
creams after shower
Hair fall NA Parachute NA NA
Hair
Therapy

e)To research trends.


Trends in vehicle

Vehicles sales 07-08

cars 1203531
U.V. 344454
C.M. 486817
Two.W. 7248600
Three.W. 364703
Total 9648105
15 13.53
11.79

10

5 4.07

0
Car Jeep Truck Auto rickshaw Motor Bike

-5

-10 -7.92
-9.71

-15
Most Trusted Brands, Top 10

2008 Company 2007 2006 2005 2004


1 Nokia 4 44 71 -
2 Colgate 1 1 1 1
3 Tata Salt 13 5 5 6
4 Pepsodent 8 15 11 5
5 Ponds 9 4 6 3
6 Lux 3 2 2 4
7 Britannia 5 8 8 7
8 Dettol 6 3 4 2
9 Lifebuoy 7 13 13 11
10 vicks 2 7 9 13

IV IMPORTANCE OF MARKETING
RESEARCH

Marketing Research helps the marketer in


following decision areas:

(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
Quarter ended 2007
Mar. June Sept. Dec.
HUL 35.2 36.5 37 37.5
P&G 7.5 7.4 7.7 7.4
Nirma 13.4 13.1 13.2 13.6

Category: Shampoo
Market Size: Rs. 2141 Crore

Company Quarter ended 2007


Mar. June Sept. Dec.
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
Market Size: Rs. 6553 Crore

Company Quarter ended 2007


Mar. June Sept. Dec.
HUL 55.3 54 53.2 54.3
Santoor 6.2 6.6 6.9 7.5
Nirma 7 6.6 6.7 5.7

Category: Skin Care


Market Size: Rs. 2758 Crore

Company Quarter ended 2007


Mar. June Sept. Dec.
HUL 54.8 55.1 55 54.5
Boroplus 5 5 5 5.1
Vicco 3.1 3.1 3.1 3.1
Turmeric
Category: Packaged Tea
Market Size: Rs. 4396 Crore

Company Quarter ended 2007


Mar. June Sept. Dec.
HUL 21.9 22.3 23.4 22.7
Tata Tea 18.9 19 20.2 20.8
Wagh 4 3.8 3.6 4.2
Bakri
HUL as second-best in a couple of
segments

Category: Toothpaste
Market Size: Rs. 2733 Crore

Company Quarter ended 2007


Mar. June Sept. Dec.
Colgate 48.2 48.5 48.2 48.8
HUL 30 30 30 29.5
Category: Ketchups
Market Size: Rs. 271 Crore

Company Quarter ended 2007


Mar. June Sept. Dec.
Maggi 32.2 30.9 30.9 30.3
HUL 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
Shopper’s 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 OF MARKETING


RESEARCH / OBSTACLES IN
ACCEPTANCE OF MARKETING
RESEARCH

(1) In corporate India total number of


companies could be more than 10,000
whereas companies engage in conducting
marketing research, in organize sector are
around 10 to 15 and unorganized around
32 to 50; of which the major are leading
marketing research companies and their
sales turnover is as follows:

Marketing Services Sales turnover


Research offered for the year
Company 2005 (Rs. In
Crores)
ORG-MARG People meter, 100
retail audit
MRAS Test marketing 25
MBA Opinion polls 10
RCG Perceptual maps 12
STANDARD Customer 10
RESEARCH satisfaction
surveys
IMRB Advertising 75
testing research
Total 232
Corporate India’s turnover is few billion $
whereas sales turnover of all marketing
research companies (organize and
unorganized) does not exceed more than Rs.
500 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. 25
crores and 20 crores respectively annually on
marketing research, which is not even 1 per
cent of their sales turnover. 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 viewership
every six months. The boys recruited are
under-graduates who do not know the
purpose of the study. They judge jott 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
enthrusted 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 week’s time and submit
100 questionnaires. Normally, the
interviewer is not able to complete this
work in one week’s 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 4 to 6
months time. In marketer’s opinion, the
survey should not take more than one
month’s 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) Cost 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
(b) Inadequate skill of investigator
(c) Researcher inclined towards pre-
determined results.
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 DATA

Government Sources

Name of the Source Information provided


1) Directorate General of Installed manufacturing
Supplies & Disposal capacities & actual utilized
(DGS&D) capacities for all
2) Directorate General of manufacturers
Trade & Disposal
3) Reserve Bank of India Availability of foreign
(RBI) currencies.
4) Directorate General of Import-Export statistics
Commercial Intelligence &
Statistics
5) Centre for monitoring Economic Growth, GDP
Indian Economy (CMIE)
6) Census Population, no. of families,
no.of voters
7) Geographic Survey of Regionwise production of
India agri-produce
8) Horticulture Board of Value-added fruits,
India vegetables & flowers and
markets
Name of the Source Information provided
9) Directorate General of Import Export Regulations
Foreign Trade (DGFT)
10) Exim Bank Creditworthiness of
importers and countries.
11) Export Credit Guarantee Insurance covers and
Corporation of India (ECGC) financial guarantees
available to exporters.
12) Agriculture & Processed High Tech Agri Farming,
Food Export Development technology tie-ups, seed
Authority(APEDA) capital, inspection, etc.
13) Central Statistical Industry Economics
Organisation (CSO)
14) National Sample Survey Per Capita consumption &
(NSS) monthly per capita income,
literacy per state,
employment across male
& female
etc.

Non-Government Sources

1) Org Marg TRP ratings, Retail Store


Audit
2) INSDOC (private Any publication after 1970
Library)
3) Path Finder 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 } Retailing in India


10) A.T.Kearney }
• 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 of Personal Mail method Telephone


differentiation interview interview
method method
No of samples Not very Large no Much mo
high due samples can sample can b
time be contacted contacted a
constraint less tim
required
Time Is used Used when Used when ve
when considerable short
adequate time is available
time is available
available
Cost Highest Lowest Moderately
high a
compared
MM
Accuracy Highest due Not very high Fairly high b
to personal due to depends o
interaction a. Response skill
and data rate not more interviewer
recording than 20 to 25% sorting o
with rightb. Wrong misinterpretat
understandi interpretation n of Qus.
ng of Qus. can
not be sorted
out.
Use Not much For For outstatio
useful when geographically samples th
large scattered cost could b
geographic samples this prohibitive
area is to be is best suited hence usef
cover due to local survey
cost only.
constraint
Infrastructure Huge Almost In terms o
infrastructure negligible skilled
in form of telephone
project operator an
leader, data base
research
officer and
investigators
required

Type of Useful for Suitable for Suitable


samples ignorant and samples samples ca
illiterate who can properly
samples read and communicat
write
Questionnaire Samples lengthy Legthy
loose interest questionnai questionnar
with lengthy re is no wont do bco
questionnaire prob. bcoz sample is no
Sample feel directly seen
it at his
convenient
time

Interviewer Skilled Skilled o not Skilled


Interviewer skilled Interviewer
can improve Interviewer r can improve
accuracy does not accuracy
affect
accuracy
Type of Qus Suitable for Suitable for Suitable only
spontaneous spontaneous for
Ans since as well as Spontaneous
samples do well thought Ans
not like to tax Ans
their
memories
Drawbacks/Limitations If Questionnaire It is
investigators might not be impossible to
are not trend, filled up by judge person
he himself intended contacted is
might fill up person desired
Questionnaire person as
such the 1st
name of
sample must
be known

Internet Interviewing

Web interviewing Email survey


• Applications All type of
Exam marketing
surveys

• CAT
• Admissions

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 compuer 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 from


Secondary Sources
(a) Orange availability statistics:

India Brazil West- Tanzania


Indies
i) area covered 600 1300 100 400
acres
ii) volume grown 2 18 0.5 1.2
in million
iii) Growth rate 3-4% 6-8% NIL 1-2%
percentage
iv) Yield tons per 3 14 0.75 1.5
hectare
Source: HBI/APEDA

(b) Orange Producing states in India

States Main districts


i) Karnataka Curg, Hasan
ii) Maharashtra Nagpur, Vardha,
Amravati
iii) Orissa Puri
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
litre of juice.
vii) The popular pack sizes of serving
juices
viii) 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
agrees / youngers / folders
vii) What price would you like to
pay for say pack size of 250 ml
of orange juice Rs. 10/-, Rs.
13/-, Rs. 15/-
(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 (Source:ET/BI/BL/BT)

(II) Ranking as per no. of students


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

(III) 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 today’s 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:


[14]
(a) Consumer Panels
(b) Retail Store Audit
(c) National Readership Survey
(d) Data Collection Methods
(e) Semantic Differential Scale
(f) Rating and Ranking Scales
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 +1 0 -1 -2
strongly agree Neither Disagree Strongly
agree Agree Nor disagree
disagree
TML Th 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 +2 +1 0 -1 -2 -3
TML Wipro IIMP

(1) Location

(2) No. of branches

(3) Work timings

(4) Service-Quality

(5) Behaviour 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)
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 Readership Readership Readershi


No. (2006) (2005) growth (%
1 Business 680,000 523,077 (+)3
world
2 Business 676,000 757,000 \(-)1
Today
3 Business 450,000 371,901 (-) 2
India
4 B&E 253,000 NA --

(B) Readership of National Dailies

S. No. Title Readership


1 Dainik Jagran 5,36,00,000
2 Dainik Bhaskar 3,58,00,ooo
3 Eenadu 13,800,000
4 Lokmat 2,29,oo,ooo
5 AmarUjala 10,800,000
6 Hindustan(hindi+eng 2,96,oo,ooo
)
7 Daily Thanthi 10,400,000
8 Dinakaran 9,639,000
9 Rajastan Patrika 9,391,000
10 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 125
million TV homes, of which 68
million are C&S 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. 2000/- for 10
second ad and Rs. 1000/- for non-
prime time. Similar figures for FM
are Rs. 1600/- / 800/-.
(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 0.35 crores mails, the
configuration of which is as follows:

Service Subsidy Traffic Total


per unit (in million) deficit
(in Rs.) (in Rs. Cr.)
Post Card 6.1 255.1 156.6
Printed post card 0.7 43.6 2.9
Letter cards 4.1 327.5 135.4
Registration 16.0 223.3 357.9
Money Order 28.5 116.5 331.5
Reg. Newspaper 7.9 59.3 46.6
(single)
Reg. Newspaper 12.2 3.6 4.4
(bundle)
Printed Books 9.2 2.5 2.3
Parcel 12.1 5.3 6.5
Others NA NA 160.0
Total 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) 48% have washing machine
and ACs
(g) 46% have four wheelers
(h) 38% have motor cycles

Consumer profile for The Hindu is as


follows:

(a) Two lakhs of readers belong


to SEC A1
(b) 19 lakhs belong to age 20+
(c) 12 lakhs belong to graduate
level education
(d) More than 8 lakhs belong to
income Rs. 5000+
(e) Five lakhs have profession
like Executive, Business class,
etc.

(II) 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) 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.
(b) 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.
(c) The teams are sent to different
areas already planned in advance
and with the guidelines on
collection of data
(d) 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) For recording the data, special
booklets are prepared in which the
team records the entries.
(f) 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 27 crores consumers
(USA) around 5,000 panels are required.
From this formula, if we calculate for Indian
markets, total 18,000 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:
Brand purchased, Number of units
bought, Price paid, Pack size, Place of
purchase and reason for purchase.
(c) Panels are advised to visit households
on week-end days.
(d) 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
competitor’s 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
décor&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 – 18,000 x Rs. 50/- x 4 x 50
= 1,80,00,0000

(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 been finalized, to test
expectations of consumers about
product features.
(examples – HLL’s Closeup, HLL’s
Liril, M&M’s Bijali, P&G’s Pantene,
(ii) 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 IN ADVERTISING


DECISIONS

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

India’s 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) McKinsey
4) KPMG
5) Accenture
6) Capgemini
7) ACNielsen
8) Boston Consulting
Group
9) Hewitt Associates
10) Deloitte
(d) To study image of company as
well of the product
(e) 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 sponsor’s 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 un-aided 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 unit’s marketing
problem areas and opportunities and to
recommend an action plan to improve
marketing effectiveness.
Marketing Audit
(1) Marketing Environment Audit (2) Marketing Strategy Audit
(3) Marketing Organization 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 Sweden, car maker to be


discussed.

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


S = --------------------------------------------
6

10 – 1 9
= -------- = --- = 1.5
6 6

Substituting value in the formula


2
1.96 x 1.5
n= ------------- = 35
0.5

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 Design Type


Probability Non-Probability
Cost More Costly Less Costly

Accuracy More Accurate Less Accurate


Time More Time Less Time
Acceptance of Universal Reasonable
results acceptance acceptance
Generalisability of Good Poor
results

5.8 SAMPLING TECHNIQUES

Probability Sampling Non-probability Sampling


1) Each sampl4e unit in sample 1) The chance of each sample
frame has equal or know unit from sample frame being
chance of being included as included as sample cannot be
sample estimated.
2) Samples are selected at 2) Samples are selected w.r.t.
random from sample frame. prior Experience or judgement
of the researcher
3) Whenever large sample size 3) For accessing small sample
is involved, this method is used. size this method is used.
4) When highly accurate 4) Whenever time and cost
decisions of known errors are constraints are inevitable (like
intended regardless of cost, this exploratory Research), this
method is useful. method is used.
5) Normally used for consumer 5) Normally used for industrial
goods survey. 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) Random Sampling


(ii) Systematic Sampling
(iii) Stratified Sampling
(iv) Multistage Sampling
(v) Area Sampling

For non-probability technique

(i) Purposive Sampling


(ii) Quota Sampling

Questionnaire Design and Drafting

Following elements in balance 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 Amul’s Masti curd
and HLL’s 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.

Appropriate Layout

Information Needed Method of data Sampling


(Secondary or collection, PI, TI technique and
Primary data) or Observation methods

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 testing of revised questionnaire

Questionnaire Do’s and Don’ts


 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 test 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


Which of the following factors made you
by 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 2 3 4 5 6 7
Brand B 1 2 3 4 5 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………………
….………….Inexperienced
Modern……………………
…..………….Old-fashioned
(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 Extremel Important Some Not very Not
y what important important
important important at all
(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
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 Can’t say Dis-agree Stro


Agree disa
(i) Possessing TV set is
a status symbol
(ii) Observing TV is
passing time
(iii) DDs TV programmes
are dull whereas C & S’s
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)
Government’s 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

SCALING TECHNIQUES
7.7 ILLUSTRATIONS

(1) Construct following scales of attitude


measurement (i) Nominal (ii) Ordinal (iii) Interval (iv)
Ratio (v) Thurstone
(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 Symbol City Mobile Symbol


Telephone Users
Users
1. Pune 80000 W 7. Puri 50000 E
2. 300000 W 8. 180000 S
Mumbai Hyderabad
3. Nasik 50000 W 9. 270000 S
Bangalore
4. Delhi 250000 N 10. 275000 S
Chennai
5. 60000 N 11. Cochin 40000 S
Lucknow
6. 200000 E 12. Punjim 50000 W
Calcutta

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 West South East


Territory Territory Territory Territory
310000 480000 725000 250000

Conclusion: - Attitude formed is, south territory has


highest potential.
Illustration (b) Godrej Agrovet have provided following
data for it’s ‘cattle feed’ product Brand ‘Milk More’.
Construct Nominal scale.

District Region Sales District Region Sales


per per
day day
in in
Qtl. Qtl.
1. Nagpur Vidharbha 300 7. South 260
Solapur Maharashtra
2. Akola Do 200 8. Do 340
Baramat
i
3. Wardha Do 400 9. Sangli Do 280
4. Marathwad 150 10. Wet 500
Aurangaba a Pune Maharashtra
d
5. Jalna Do 105 11. Do 380
Nasik
6. Parbhani Do 125 12. Do 400
Satara

Let us regroup region wise sales and rank them

Sr. Regiona Total sale in Rank


No. Qtls. Per
day
1 Vidharbha 950 II
2 Marathwada 380 IV
3 South 880 III
Maharashtra
4 West 1330 I
Maharashtra
Conclusion: Attitude formed is Western Maharashtra
Region is having highest sales potential.

In marketing research, ordinal scales are


(ii) Ordinal Scale:
used to ascertain consumer’s perception on a brand,
service, etc. Illustration a) Mobile user’s brand
preference for handset manufacturers

Attribu L P Desi High Batt Dura Reliab Voic Cari T


tes igh rice gn / techn ery bility ility e ng otal
t style ology life qual com sco
wei ity pany re
ght in
%
Nokia 99
%
Sony 99
Ericso %
n
Motoro 97
la %
LG 93
%
Samsu 82
ng %
Panas 80
onic %
Philips 68
%
Sieme 66
ns %
Mitsub 30
hishi %
Alcatel 13
%
TCL 5%
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 nor Dislike most
P D M P D M P D M P D M P D M
Taste
Cheese Quality
Briskness
Thickness
Spice
Price

Conclusion: McDonald’s 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 Quantity Price Total Commission Total


sold in /each in sale Rs. earned per profit Rs.
one year Rs. vertical
Hero Honda 230 46000 1058000 4000 920000
Passion 0
TVS Victor GL 205 45000 9525000 4500 922500

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.
(v) Thurston scale: This is eleven point scale to
express varying degree of attitude from unfavorable to
favorable.
B
A F K
C D E G H I J
Unfavorable Neutral 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) All these Saas-Bahu serials build up negative


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


1. Attitude is measured from the point of 1. Attitude is measured from the point of view of
view of intensity of the likes and dislikes intensity of preferring one product over other.
2. Interval data is needed 2. Ordinal data is needed
3. It is absolute 3. It is relative
4. Examples – Interval Scale 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 +1 0 -1 -2
of
Attributes Strongly Agree Neither Disagree Strongly
Agree agree nor disagree
Disagree
Cost
friendly
Grip
Wear &
tear
Rubber –
quality
longevity
Brand Sign Score
MRF 2+2+2+2+2 = 10

JK 2+1+2+1+2=8

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 Bette G Averag P M Wors


nt r ood e oor ore t
poor
Score +3 +2 +1 0 -1
Attributes W V LG Attributes
Progressiv Tradition
e al
Reliable Unreliabl
e
Strong Weak
Cust- Non cust-
focused focused
Responsiv Non
e response
Brand Sign Score
Whirlpool W +3+2+2+3+2 = 12

Videoon V +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 Responsivenes Assurance Empathy


s
RIM +3 +2 +1 +1 +1
BHARATI +3 +2 +2 +3 +3
TATA -2 -3 0 +1 +1

Solution :

+3 +2 +1 0 -1 -2 -3
Reliability
Tangibility
Responsiveness
Assurance
Empathy

Brand Sign Score

RIM BA +3+2+1+1+2 = 9

Bharati BH +3+2+2+3+3=13

Tata TA -2-3+0+1+1=-3

Construct Semantic Differential scale for Management


Institutes (Leading) in India

Attributes Excell Bett G Avera Po V W


ent er ood ge or ery orst
po
or
+3 +2 +1 0 -1 -2 -3
Reputatio
n
Success
of
placement
Quality of
Placemen
t
Infrastruct
ure
Faculty
Teaching
Methodol
ogy
Special
Units
Admissio
n
eligibility

1) Reputation: High rank, tie up with foreign


Universities / Instt., admission tests are toughest,
have international recognition, best aluminus
2) Success of placement: 100% placement, multiple
placement option
3) Quality of placement: Abroad placement with
MNCs, Average salary best among top ‘B’
schools
4) Infrastructure: provides financial aids,
convenient location, high standard hostel &
mess, high speed internet facility, all class room
with LCD, high class book library
5) Faculty: Well trained faculty, research done by
faculties, visiting faculties from Industries
6) Teaching Methodology: Good counseling,
student faculty ratio 1:1, industry interaction as
part of syllabus
7) Special units: Known for marketing programme,
known for mass media and finance programme
8) Admission eligibility: Students with work
experience, only engineers

Scores for Leading Management Institutions:

IIM = +3+2+2+2+2+2+1+1 = 15
ISB = +2+2+3+3+2+2+3 = 17
ICFAI = +2+1+2+2+2+1+2+1 = 13
SYMBI = 2X8 = 16
INDIRA = +1+2+1+2+2+2+1+0 = 11

(iv) Perceptional Map


Following data is given on Indian Refrigerator Industry (Size 165 lit. to
180 lit.)

Brand Technology Price :Rs.


BPL Direct cool 9290
Godrej Do 8000
Kelvinator Do 9990
Samsung Do 8490
Whirlpool Do 9100
LG Do 9000
Electrolux Frost free 11000
Videocon Direct cool 8890
Allwyn Do 8290
Voltas Do 8110
Daewoo Frost free 10500

Prepare Perceptual map.

Solution: Construction of Perceptual Map

High price (Rs.)

12000

11500

11000 $

10500 #

Kelvinator
Direct cool 9500 Frost free
Whirlpool BPL LG
9000
Samsung
8500
Alwyn
Voltas
8000
Gordrej

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 of Experimental
new product research design
(4) Re-launching of Qualitative Research
declining product or Perceptual
mapping

CASE STUDY EXAMPLES

(a) Apartment on wheels


(b) Makeup room on wheels
(c) Hotel apartment
(d) 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 sponsor’s 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

Price research is done in following two


situations
(B) When competitors product is
available for comparison of
the price.
Coca cola, though startgin
offering 300 ml at Rs. 7 as
against Pepsi’s 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 Dsitribution 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)
b) 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.
c) Given below production + marketing cost for a
movie, decade-wise, as well as the revenue per
territory for different viewerships.

(1) Production +Marketing cost for a movie –


decade wise

Sr. Decade Production + Hit movies


No. Marketing
cost in Rs.
Cr.
1 60-70 Upto Rs.0.50 Dosti, Jangali Kasmir ki Kali,
cr. Aaradhana, Daag, Aarjoo, Farz,
Suraj, Sangam, Upkar
2 70-80 Upto Rs. 0.75 Bombay to Goa, Janjeer, Bobby
cr. Hathi Mere Sathi, Amare Prem,
Kati Patang, Deewar, Roti,
Trishul, Don, Shole, Roti kapada
Aur Makan, Pyarab-Paschim
3 80-90 Upto Rs. 1.25 Karma, Ram-Lakhan, Tejab,
Cr Dostana, Aakhir Rasta,
Himmatwala, Tohafa
4 2001- Upto Rs. 50 Laggan, Koi Mil Gaya, Krish,
2008 Cr. Devdas, OSO, Welcome, K3G

(2) India’s 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 Balcon Movie Revenue (all India)


No. y ticket cost Movie stays for
50 100 175
days days days
1 60-70 Rs. 1.50 Rs. 0.50 0.48 0.65 0.80
Cr.
2 70-80 Rs. 2.00 Rs.0.75 0.74 0.90 1.10
Cr.
3 80-90 Rs. 5.00 Rs.1.25 1.25 1.50 1.75
Cr.
4 90-2000 Rs.20.0 Rs.2.0 2.05 2.35 2.60
Cr.
5 2000-2008 Rs.50.0 Rs.10.0 100.0 170.0 250.0
Cr

(3) Comparison of Revenues before and after 1992

Revenue per week (fig. in Rs. Cr.)


Before After 1992 to 2000
1992 Movie (single Various Total
screen) Rights
50% 0.035 0.29 0.15 0.44
viewership
90% 0.070 0.60 0.15 0.75
viewership

d) Bollywood invented new channels of distribution,


since 1992

Year Invention Example


1992 Music right Khalnayak - 0.75 cr), K.K.H.H. - 2.25,
Mohabbatai – 7 Cr., Devdas -12 Cr.
1995 Export K.K.H.H. – 11.37 cr., Mohabbataien –
Rights 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.
1997 DVD & Kaho Na Pyar Hai – 2 Cr., Karan-
Satellite Arjun – 0.50 cr., Krish & Koi Mil Gaya
– 12 Cr., Murder – 20 Lakhs

e) 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 All India Revenue in one week Remark


Single Multiple Total
screen x
cinema
Jannat 5 cr. 14 cr. 2 cr. 16 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
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 McDonald’s 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, McDonald’s 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

• Kellogg’s Bisucits / Kellogg’s


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 Mumbai’s 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 IN THE INDIAN


CONTEXT

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
Khan’s 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


image of Lux and Shah Rukh Khan.

FINDINGS

Qualities Rank Rank


for Lux for
SRK
1 Masculine 5 6 0
2 Feminine 1 2 1
3 Status 3 5 2
4 Sophisticated 4 3 1
5 Cool / Hep 5 4 1
6 Glamorous 2 1 1

Summary of Findings

Correlation
1 Glamour There is not a significant
Difference
2 Feminist There is a significant
Difference
3 Mascutinity There is a significant
Difference
4 Status There is a significant
Difference
5 Sophistication There is not a significant
Difference
6 Cool / Hap There is a significant
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:

I fhte company plans to continue with a male


celebrity in its ads, it should take Saif Ali Khan
as majority of the respondents (31%) though
he is more of a metro sexual man 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 or Shahid Kapoor for the
same. Both Saif and Shahid are on the up in
their careers and are thus very much in the
news. The metro 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 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.
4. There is a significance Difference in the
Masculinity quotient of Shah Rukh Khan
and Lux.
5. There is a significance Difference in the
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 Multivariate


analysis
(Data obtained in (Simultaneous
Analysis of two or
More variables
Single variable)

Testing of hypothesis Correlation


analysis
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 null hypothesis&


Alternate hypothesis must be stated.

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.

95% of area
2.5% of area
2.5% of area
Rejection Acceptance
region 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 : μ (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 : μ (mu) ≠ Rs 1500

HA: μ (mu) > Rs 1500

HA : μ (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 α.

Here, α = 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 β. And
this error depends on (1) the true value of the
parameter, (2) the α level we have selected,
(3) the nature of the test used (one or two-
tailed) 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 (β) 95%.
For a different population mean the value of β
will be different. Ideally, a zero β indicates an
error free test. This means that ideally 1- β
must be equal to 1. The closer this value is to
1, the better is the test. 1- β is considered as
the power if a hypothesis test for it is the
probability of rejecting a false null hypothesis.

Accept H0 Reject H0
H0 is Correct Wrong –
true Type-I error
HA is Wrong – Correct
true Type-II error
4.15 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 (χ2) ANALYSIS

This is the most widely used non-parametric


test, particularly
k
for nominal data, but it can
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
χ2 = ∑ Ei
i=1

Observed distribution of data among


categories and expected distribution is
significant.
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 χ2 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 χ2 value. The formula for χ2 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
χ2 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 χ2 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 χ2= 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 Percent E


to buy Oi interviewe (No. Fre
d Interviewed (P
/ 200)
Self 14 90 45
employed
(like doctors,
lawyers)
Front Line 17 40 20
workers
Administrativ 14 40 20
e
Academic 15 30 15
Total 60 200 100
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)

χ2 = ∑E∑ ij
i j

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 (μ) i.e. HA> μ i.e. HA > μ or HA < μ is
called one tailed hypothesis. On the other side
when alternate hypothesis is stated as not
equal to hypothesized mean (μ) i.e. HA ≠ μ, it
means HA could be less than μ or more than μ.
Hence this is called as two sided or two tailed
hypothesis.

4.4 LEVEL OF SIGNIFICANCE AND


CRITICAL VALUE OF Z

Level of Critical value of Z


ignorance One tailed Two tailed
(α) test (zα) test (zα)
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 -μ
Test Statistics = t/z = -----------
S /n √

Data : x = 980ml., μ = 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=μ – 50 gm


Alternate Hypothesis = H1: μ< 50 gm

x-μ
Test statistics = t/z = ---------
S / √n

Data: x=60 gm, μ = 50gm, S=5 gm, n =


sample size =1000

60-50 10 10
t/z = ----------- = --------- = ----------- = 63.29
5√1000 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
Khan’s 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


image of Lux and Shah Rukh Khan.

HA : Tehre is a mismatch between the


image of Lux and Shah Rukh Khan.

FINDINGS

Rank Rank
for Lux for
SRK
1 Masculine 6 0
2 Feminine 2 1
3 Status 5 2
4 Sophisticated 3 1
5 Cool 4 1
6 Glamorous 1 1

Summary of Findings

Correlation
1 Glamour There is not a significant
Difference
2 Feminist There is a significant
Difference
3 Mascutinity There is a significant
Difference
4 Status There is a significant
Difference
5 Sophistication There is not a significant
Difference
6 Cool / Hap There is a significant
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.
7. There is a significance Difference in the
Feminine quotient of Shah Rukh Khan
and Lux.
8. There is no significance Difference in the
Sopyhistication quotenti of Shah Rukh
Khan and Lux.
9. There is a significance Difference in the
Masculinity quotient of Shah Rukh Khan
and Lux.
10. There is a significance Difference in the
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 x
y non linear relationship y no relationship

. . .
. .
. . .
. .. .
...... .

x x

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 5 4 6 9
Y: 3 4 4 8 9

Worksheet for the calculation of correlation

Series X Series Y XY X2 Y2
2 3 6 4 9
5 4 20 25 16
4 4 16 16 16
6 8 48 36 64
9 9 81 81 81
26 28 171 162 186
The formula for calculating coefficient of
correlation r is as follows:

Y = n ∑ xy – (∑ x) (∑ y)

√ (n ∑ x2 – (∑ x) 2
(n ∑ y2 – (∑ y) 2)

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 Ranks on Differen Differenc


n obtaine the basis ce e square
d in of field d=( X-Y) d2
trainin sales
gX performan
ce
Y
1 4 5 -1 1
2 6 8 -2 4
3 1 3 -2 4
4 3 1 2 4
5 9 7 2 4
6 7 6 1 1
7 10 9 1 1
8 2 2 0 0
9 8 10 -2 4
10 5 4 1 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 and


identifying research objectives

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.
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 supervise the investigators,
as well help project leader for data analysis.
Project leader is the captain incharge. 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

Illustration:
Step 1: Defining research problem and
identifying research objectives

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
 Any other (please specify) ______
11. 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
12. How frequently do you purchase
detergents?
 Once a week
 Once a fortnight
 Once a month
 Once in two months
13. You prefer your detergent in:
 Sachets (10 gm, 20 gm, 50 gm,
etc)
 Packets
 Jars
 Bigger containers
 Any other (please specify)
_______
14. If your preferred detergent is not
available, you go for:
First Choice ______________
Second Choice ___________
15. 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.
Sex

Male
Female

Sample size = 40

OCCUPATION
30
23
20
10
10 7

0
Housewife Student Working

Sample Size = 40
INCOME GROUP
<5000 6
5001-10000 14
10001-15000 10
>15000 10

0 2 4 6 8 10 12 14 16
Sample Size = 40

AGE GROUP
15 14
12
10 9

5
5

0
<25 25-34 35-44 >44
Sample Size = 40

25 22
20
15 12
10 6
5
0
1

Yourself Maid / servant Others Sample Size = 40


MEMBERS IN HOUSEHOLD
1 5%
2 10%
28%
3
4 14%
5
6

24% 19% Sample Size = 40

OWN A WASHING MACHINE?

50% 50%

Yes No Sample Size = 40


Findings of Survey

23%

77%

Yes No 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.

48%
52%

Surf
Others 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
consumer’s mind and in the market.

3. Sub-brands of Surf used


20
17
15

10

5
2 2
0
0
Surf Excel Surf Ultra Surf Super Surf Excel
Excel Matic
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
5%
14%

37%

Whiteness
Lather
easy on hands
24%
easy on Fabric
Stain Removal
10%
Others 10%
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 10% with respect to


32%
the advertising
24%campaign of Surf.
Lalitaji

Surf Excel hai Naa

Dho Daala 10% 24%

Dhoondte Reh
Jaaoge
Any Other

Sample Size = 21
Of the consumers surveyed, awareness with
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.


5

0
Price Quality Packaging Fewer Others
Schemes
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
0 2 4 6 8

Others 2
Tide 1
1
Rin 7
Wheel 7
2
Ariel 4

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 runner-
up and was largely responsible in influencing
people while buying their preferred brand.

11. Quantity usually purchased

Quantity No.
Less than 1 kg 10
1-2 kg 20
2-3 kg 6
3-4 kg 3
More than 4 kg 1
Total 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 No.
Once a week 3
Once a fortnight 11
Once a month 23
Once in two months 3
Total 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 multi-
utility purpose after using the primary product.

14. Alternative brand of detergent

First choice Second choice


Brands No. Brands No.
Rin 9 Rin 11
Wheel 8 Wheel 12
Surf 10 Surf 5
Tide 1 Tide 6
Ariel 7 Ariel 3
Henko 4 Henko 1
Nirma 1 Nirma 2
Total 40 Total 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

No

Yes

0 5 10 15 20 25
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 amongst


acquaintances of consumers

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 sub-
brands.
• 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 sub-
brand 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.

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