Chapter 1: INTRODUCTION MARKETING RESEARCH I TO
(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 RESEARCH
(a) To generate, refine, evaluate marketing plan.e.g bottled water.
CURRENT MARKETING SITUATION( Bislerry)
: : :
Rs. 1700 Cr (2007) 17-20% P.A. Health conscious
(ii) Growth Rate (iii) Target Market consumers
(iv) Product Situation : Current projected profits loss statement 0-7-8 (a) Industry Sales (b) Parle‟s market share 08-09
1700 Cr 2000 Cr 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) ml Sales volume in units : 60% 500 ml + 40% 1200 ml 56.6 Cr 500 ml 24.2 Cr 1200
(g) Total Gross Margin
(h) Depreciation, Interest & Tax 50% of GM 42.5 Cr (i) (j) Net profit (g-h) 42.5 Cr (10%)
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 7.85
(m) Net operating profit (i-j-k-l) Amount 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 weightloss 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
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 Hair Care Market space Size (Rs. Crore) Value-added 200 Parachute coconut oil advansed Jasmine Market Closet share Competitor (%) 85 Clinic
Amla oil Non-sticky hair oil Post-wash conditioner Hair gel and creams Hair fall
Shanty Badam Amla Hair and care Silk-n-Shine Parachute after shower Parachute Hair Therapy
50 80 NA
30 30 NA
Dabur, bajaj Keo Karpin Bajaj Sunsilk, Livon Brylcreem NA
e)To research trends. Trends in vehicle Vehicles sales 07-08 cars U.V. C.M. Two.W. Three.W. Total
15 11.79 10 4.07
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. 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 Price To study price affordability of target market, to study competitive pricing structure, etc. 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) Promotion To design promotion mix, to identify promotion mix of competitors, to study emerging promo tools (road shows, pops and kiosks)
BENEFITS OF MARKETING RESEARCH (a) Conducting Marketing Management to identify strength and weaknesses of the marketer as well as the competitors.Also to research market shares.Example of HUL.
HUL as Winner in the Market? Category: Fabric Wash Market Size: Rs. 8875 Crore Company HUL P&G Nirma Quarter ended 2007 Mar. June Sept. Dec. 35.2 36.5 37 37.5 7.5 7.4 7.7 7.4 13.4 13.1 13.2 13.6
Category: Shampoo 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 HUL Santoor Nirma Quarter ended 2007 Mar. June Sept. Dec. 55.3 54 53.2 54.3 6.2 6.6 6.9 7.5 7 6.6 6.7 5.7
Category: Skin Care Market Size: Rs. 2758 Crore Company HUL Boroplus Vicco Turmeric Quarter ended 2007 Mar. June Sept. Dec. 54.8 55.1 55 54.5 5 5 5 5.1 3.1 3.1 3.1 3.1
Category: Packaged Tea Market Size: Rs. 4396 Crore Company HUL Tata Tea Wagh Quarter ended 2007 Mar. June Sept. Dec. 21.9 22.3 23.4 22.7 18.9 19 20.2 20.8 4 3.8 3.6 4.2
HUL as second-best segments
Category: Toothpaste Market Size: Rs. 2733 Crore Company Colgate HUL Quarter ended 2007 Mar. June Sept. Dec. 48.2 48.5 48.2 48.8 30 30 30 29.5
Category: Ketchups Market Size: Rs. 271 Crore Company Maggi HUL Quarter ended 2007 Mar. June Sept. Dec. 32.2 30.9 30.9 30.3 26 25.5 26.9 28.1
(b) Determining whether economics of scale and economics of scope (e.g. retailing, insurance and telecom can be clubbed by organized retailer like 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
(e) (f) (g) (h)
(i) (j) (k)
being served.( dVD vsVCD, CDVs Flopy) New mantras of emerging segments. The marketing and manufacturing capabilities of competitors. Most suitable entry timing The current and prospective competitive position w.r.t. price, quality, reputation, etc. Chances of improvement of current channels Optimum use of promo-tools 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. 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-ncarry VII LIMITATIONS RESEARCH / ACCEPTANCE RESEARCH OF MARKETING OBSTACLES IN OF MARKETING
(1) In corporate India total number of companies could be more than 10,000 whereas companies engage in conducting marketing research, in 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 Research Company ORG-MARG MRAS MBA RCG STANDARD RESEARCH IMRB Services offered Sales turnover for the year 2005 (Rs. In Crores) 100 25 10 12 10
People meter, retail audit Test marketing Opinion polls Perceptual maps Customer satisfaction surveys Advertising testing research Total
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 predetermined 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 1) Directorate General of Supplies & Disposal (DGS&D) 2) Directorate General of Trade & Disposal 3) Reserve Bank of India (RBI) 4) Directorate General of Commercial Intelligence & Statistics 5) Centre for monitoring Indian Economy (CMIE) 6) Census 7) Geographic Survey of India 8) Horticulture Board of India
Information provided Installed manufacturing capacities & actual utilized capacities for all manufacturers Availability of foreign currencies. Import-Export statistics
Economic Growth, GDP Population, no. of families, no.of voters Regionwise production of agri-produce Value-added fruits, vegetables & flowers and markets
Name of the Source 9) Directorate General of Foreign Trade (DGFT) 10) Exim Bank 11) Export Credit Guarantee Corporation of India (ECGC) 12) Agriculture & Processed Food Export Development Authority(APEDA) 13) Central Statistical Organisation (CSO) 14) National Sample Survey (NSS)
Information provided Import Export Regulations Creditworthiness of importers and countries. Insurance covers and financial guarantees available to exporters. High Tech Agri Farming, technology tie-ups, seed capital, inspection, etc. Industry Economics Per Capita consumption & monthly per capita income, literacy per state, employment across male & female etc.
1) Org Marg 2) INSDOC Library) 3) Path Finder
TRP ratings, Retail Store Audit (private Any publication after 1970
Household disposable income & consumer behaviour. 4) University Public Various courses, fees, Relation Offices duration and eligibility. 5) Yellow Pages & Ask Classified information Me 6) Internet Sites Classified information 7) Indian Association of No.of Retailers, their
classification, types, etc. Asia Customer satisfaction Index Survey Retailing in India
• 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 research
Element of differentiation No of samples
Personal interview method Not very high due time constraint
Telephone interview m
Large no samples can be contacted
Is used when adequate time is available Highest
Used when considerable time is available Lowest
Much sample c contacted less required Used whe short is av
Moderatel as compa
MM Accuracy Highest due to personal interaction and data recording with right understanding Not very high due to a. Response rate not more than 20 to 25% b. Wrong interpretation of Qus. can not be sorted out. For geographically scattered samples this is best suited
Fairly hig depends o of intervie sorting misinterpr of Qus.
Not much useful when large geographic area is to be cover due to cost constraint
For ou samples t could prohibitive useful surveys on
Huge infrastructure in form of project leader, research officer and investigators required of Useful for ignorant and illiterate
In term skilled telephon operator data bas
Suitable for Suitable samples who samples can read and properly
Questionnaire Samples loose interest with lengthy questionnaire
lengthy questionnaire is no prob. bcoz Sample feel it at his convenient time
Legthy question wont do sample directly
Type of Qus
Skilled Skilled o not Interviewer skilled can improve Interviewer r accuracy does not affect accuracy Suitable for Suitable for spontaneous spontaneous Ans since as well as samples do well thought not like to tax Ans their memories
Skilled Interviewer can improve accuracy
Suitable only for Spontaneous Ans
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 • Applications Exam surveys • • CAT • Admissions • Email survey All type of marketing
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.
• 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 i) area covered acres 600 Brazil 1300 WestIndies 100 Tanzania 400
ii) volume grown 2 in million iii) Growth rate 3-4% percentage iv) Yield tons per 3 hectare Source: HBI/APEDA
18 6-8% 14
0.5 NIL 0.75
1.2 1-2% 1.5
(b) Orange Producing states in India States i) Karnataka ii) Maharashtra Main districts Curg, Hasan 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 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)
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 70 Instructions: Max. Marks :
(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.  Q.2 (a) What are the major components of a Marketing Research Report?  (b) Discuss the distinct coverage of each major component of a written report.  Q.3 Write short notes on ANY THREE:  (a) Consumer Panels (b) Retail Store Audit (c) National Readership Survey (d) Data Collection Methods (e) Semantic Differential Scale (f) Rating and Ranking Scales Q.4 (a) What general guidelines should one follow in designing a questionnaire? 
(b) List the merits and demerits of multiple choice questions. Under what conditions multiple choice questions be inappropriate.  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.  (b) For the same problem in Q.5 (a) construct a suitable semantic differential scale.  Q.6 (a) Why is sampling used in Marketing Research?  (b) What factors would you consider in determining the sample size for a Marketing Research study?  Q.7 State and explain various Limitations of Market Research. 
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.
(i) The bank considered, say, HDFC Bank (ii) Those corporates considered, how have current accounts with HDFC Bank in Pune like Tata Motors, Thermax and Alpha Laval Ltd.
Solution: Likert Scale is about intensity of Agreement on a scale of +2 to -2 (5 point scale)
Attributes +2 strongly agree TML (1) Location (2) No. of branches +1 agree 0 Neither Agree Nor disagree ALL -1 Disagree -2 Strongly disagree
(3) Work timings (4) Service-Quality (5) Behaviour of Staff
CH 3 SPECIALISED TECHNIQUES OF MARKETING RESEARCH (I) NATIONAL (NRS) READERSHIP SURVEY
Objective of NRS is to provide such information which is simultaneously acceptable to media owners (DD, ET, etc.) Advertises (HLL, P&G, Godrej, etc.) and advertising agencies (JWT, O&M, etc.). It normally provides following information: (1) The readership of 535 publications (230 dailies and 305 magazines) as follows: (A) Readership of Business Magazines S. Name No. 1 Business world 2 Business Today 3 Business India 4 B&E (B)
(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 nonprime 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
Post Card Printed post card Letter cards Registration Money Order Reg. Newspaper (single) Reg. Newspaper
Subsidy Traffic Total per unit (in million) deficit (in Rs.) (in Rs. Cr.) 6.1 255.1 156.6 0.7 43.6 2.9 4.1 327.5 135.4 16.0 223.3 357.9 28.5 116.5 331.5 7.9 59.3 46.6 12.2 3.6
(bundle) Printed Books Parcel Others Total
9.2 12.1 NA
2.5 5.3 NA
2.3 6.5 160.0 1203.0
(4) The degree of duplication among various publications and between the different media. For e.g. how many readers read same ad in two print media (Business Magazine and Economic Times) as well how many readers see the ad say in Economic Times and TV. (5) Socio-economic characteristics of readers of various publications like dailies and magazines with respect to income level, educational background, profession, etc. Consumer profile for Dainik Jagaran is as follows: (a) 4.3 million graduates and above (b) 48% belong to SECA households (c) 49% belong to 15,000 + income group
(d) (e) (f) (g) (h)
45% of readers have refrigerators 38% of readers have TV sets 48% have washing machine and ACs 46% have four wheelers 38% have motor cycles
Consumer profile for The Hindu is as follows: (a) (b) (c) (d) (e) Two lakhs of readers belong to SEC A1 19 lakhs belong to age 20+ 12 lakhs belong to graduate level education More than 8 lakhs belong to income Rs. 5000+ Five lakhs have profession like Executive, Business class, etc.
Retail Stores Audit
It is a method of quantitative feedback from the market on consumer buying habits. It is the exclusive service provided by ORG – MARG to Indian FMCG industry. The basic
objective of retail stores audit is to observe or count the movements of the products off the retailers shelves to the consumers. The procedure adopted is as follows: (a) A list of retail outlets in India for a particular city is prepared by using data from Indian retailers Association. Based on the sales turnover, the retail outlets are classified as small, medium and large. The representative of ORG-MARG calls on all listed retailers to us their concurrence for providing information. Only those are visited who express willingness to cooperate. The teams are sent to different areas already planned in advance and with the guidelines on collection of data The team visit retail outlets twice in a month, once in first week of month (assuming retailer fills up inventory in the beginning of month) and during last week of month. The stop position is
actually counted for all the commodities, brands stock by retailer. The month-end inventory is subtracted from monthbeginning inventory. The difference is the movement of goods of the retailer shelves. For recording the data, special booklets are prepared in which the team records the entries. The data from all the retail outlets is compiled and then systematically analyzed. The analysis provides following useful information: (i) Total sales for product type (ii) Total sales for different brands and thereby market share (iii) Total sales for different pack sizes The above information is very useful for marketing planning, packaging decisions and promotion decisions.
The main disadvantage of this method is Brand Loyalty can not be studied, for which next tool Consumer Panels is followed. (III) Consumer Panels
Retail Store Audit is quantitative tool whereas Consumer Panels is qualitative tool which focuses on Brand Loyalty. Such panels can be set up by manufacturing companies like HLL or Research Agencies like ORG-MARG or by Advertising Agencies like JWT. Sometimes Government also might formulate consumer panels for studying impact of budget on consumers, etc. The size of total number of panels depends on total population to be covered. For example, for consumer goods, to collect data from population of 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, 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:
Buying Income Method
Total Income of Country Estimate of national sales = --------------------------------- x Test Area Sales Test Area income
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 semiautomatic washing machine are considered.
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.
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 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 Tata Motors Mahindra & mahindra Maruti Suzuki India General Motors India Hyundai Motor India Ford India DaimlerChrysler Honda Siel Toyota BMW Baja Auto Hero Honda Motors TVS Motor Company Yamaha Motors Escorts Kinetic Motor Honda Motorcycle & Scooter Hero Cycles Kingfisher Airlines Jet Airways Air India Air Deccan (Deccan) Indian spiceJet air Sahara (jtLite) goAir
9) 10) 1) 2) 3)
British Airways Singapore Airlines ICICI Bank State Bank of India 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
To study image of company as well of the product To study effectiveness of ad agency
The procedure adopted is as follows: (A) Recognition test (i) The respondents or samples are shown different advertisements of same product which appear in print or audio visual media and they are asked to recognize which one they have seen earlier, in which media, did they like it, if any. (ii) After masking brand name as well as 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 (3) Marketing Organization Audit (2) Marketing Strategy Audit (4) Marketing System Audit
The frequency of conducting the exercise of marketing audit depends on type of products. For example, in case of consumer non durables the exercise might have to be
done twice in a year whereas for home appliances once in a year could be OK. (VII) DATABSE MARKETING Definition: Marketing Database system is an organize collection of comprehensive data about individual customers, prospects or even suspects (suspects can be converted into customers), i.e. current, accessible and actionable for marketing purpose such as lead generation and sales of a product or service or maintenance of customer relationships. Effective database marketing might start with employees itself (case study of Alpha Laval and Mrs. Poonawala to be discussed). For consumer durables, database marketing could be done as follows: All the dealers could be enlightened to ensure that the customers who walk in the shops to be converted into buyers. For this purpose, whosoever just enquires his name, address, contact nos. to be taken down and to be followed at regular interval till he is converted as buyer?
(VIII) FOCUS GROUP INTERVIEW TECHNIQUE This is also known as indirect interviews. A group of eight to ten samples jointly participate in an unstructured interview conducted by a moderator. The samples selected have similar background or use experience related to the problem being research. The moderator in informal way goes on asking unstructured questionnaire and recording the data in two-in-one tape recorder. This information later on analyzed for decision making. Advantage: The data can be collected in shortest possible time, say, a day or two. Disadvantage: Since sample size is very small, accuracy could be doubtful. Moreover, in one focus group if a dominant personality is one of the sample then other samples gets carried away with his views even though they want to say something different. Case study of 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
= ------e where n = sample size, Z = standard normal distribution for certain confidence level, e.g. Z95% = 1.96 & Z90% = 1.645, Z99 = 2.58 S = Population Standard Deviation Maximum value – minimum value -------------------------------------------6
e = Tolerable error in estimating the variable Illustration: Whirlpool intends to research customer satisfaction level for washing machine. Customer satisfaction level is to be measured on a scale 1 to 10 where 1 means not at all satisfactory and 10 means full satisfaction. Value of Z is 1.96. What should be sample size if tolerable error is 0.5? Solution: First compute S i.e. Population standard deviation
maximum value – minimum value -------------------------------------------6 10 – 1 -------- = 6 9 --- = 6
Substituting value in the formula 1.96 x 1.5 ------------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 Cost Accuracy Time Acceptance of Design Type Probability Non-Probability More Costly Less Costly More Accurate More Time Universal Less Accurate Less Time Reasonable
results Generalisability of results
5.8 SAMPLING TECHNIQUES Probability Sampling 1) Each sampl4e unit in sample frame has equal or know chance of being included as sample 2) Samples are selected at random from sample frame. 3) Whenever large sample size is involved, this method is used. 4) When highly accurate decisions of known errors are intended regardless of cost, this method is useful. 5) Normally used for consumer goods survey. Non-probability Sampling 1) The chance of each sample unit from sample frame being included as sample cannot be estimated. 2) Samples are selected w.r.t. prior Experience or judgement of the researcher 3) For accessing small sample size this method is used. 4) Whenever time and cost constraints are inevitable (like exploratory Research), this method is used. 5) Normally used for industrial goods survey.
5.9 ILLUSTRATION Emami wants to launch „Madhuri‟ and „Ishwarya‟ range beauty ayurvedic creams, say in Pune. How should it do sample design. Solution: Sample Population: All women in Pune using Skin creams as beauty-aid.
Sample Frame: All women of PUNE using Beauty ayurvedic creams between age group 10-50 Sampling Method: Stratified. Sampling Plan “Sample frame is divided into 4 groups as follows: Group 1 – School-going girls between 1016 Group 2 – College –going girls between 17-23 Group 3 – Working ladies between 24 – 35 Group 4 – Housewives and working ladies between 36-50. Samples can be drawn from schools, colleges, offices, societies, etc. Justification : Beauty ayurvedic creams are costly and hence stratified sampling will ensure the income i.e. affordability. It is seen that at higher secondary school level, the girls are more cautious about looks. Hence, the age limit begins with 10. At the age 50, the ladies might value natural beauty. Four groups are formed to understand in depth the consumer profile and its preferences.
Sample size: 1%of frame&equally distributed over each group. (Sample frame for Pune contains 8 lacs ladies) Sampling Methods For probability sampling technique (i) (ii) (iii) (iv) (v) Random Sampling Systematic Sampling Stratified Sampling Multistage Sampling Area Sampling
For non-probability technique (i) Purposive Sampling (ii) Quota Sampling Questionnaire 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 (Secondary or Primary data) Method of data collection, PI, TI or Observation Sampling technique and 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 A 1 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 A 1 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.
Extremely Important Some Not very Not important what 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 (i) Possessing TV set is a status symbol (ii) Observing TV is passing time (iii) DDs TV programmes are dull whereas C & S‟s Strongly Agree Agree Can‟t say
Dis-agree Stro disa
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
(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 Telephone Users 80000 300000 50000 250000 60000 200000 Symbol City Mobile Symbol Users 50000 180000 270000 275000 40000 50000 W E S S S S
We can put the respective city in respective region like west, east, south and north and put the first word of region against each city name. We now add potential users under W,E,S & N and represent as follows: North Territory 310000 West Territory 480000 South Territory 725000 East Territory 250000
Conclusion: - Attitude formed is, south territory has highest potential.
Illustration (b) Godrej Agrovet have provided following data for it‟s „cattle feed‟ product Brand „Milk More‟. Construct Nominal scale. Sales District per day in Qtl. 1. Nagpur Vidharbha 300 7. Solapur 2. Akola Do 200 8. Baramati 3. Wardha Do 400 9. Sangli 4. Marathwada 150 10. Aurangabad Pune 5. Jalna Do 105 11. Nasik 6. Parbhani Do 125 12. Satara District Region Region Sales per day in Qtl. 260
South Maharashtra Do 340 Do 280 Wet 500 Maharashtra Do 380 Do 400
Let us regroup region wise sales and rank them Sr. No. 1 2 3 4 Regiona Total sale in Qtls. Per day 950 380 880 1330 Rank
Vidharbha Marathwada South Maharashtra West Maharashtra
II IV III I
Conclusion: Attitude formed is Western Maharashtra Region is having highest sales potential. In marketing research, ordinal scales are used to ascertain consumer‟s perception on a brand, service, etc. Illustration a) Mobile user‟s brand preference for handset manufacturers
(ii) Ordinal Scale:
Lig ht wei ght
Desi gn / style
High techn ology
Batt ery life
Nokia Sony Ericso n Motoro la LG Samsu ng Panas onic Philips Sieme ns Mitsub hishi Alcatel TCL
Dura Reliab Voic Cari Tot bility ility e ng al qual com sco ity pany re in % 99 % 99 % 97 % 93 % 82 % 80 % 68 % 66 % 30 % 13 % 5%
Illustration (b): Microwave ovens manufactures wants to know the brand ranking perceived by customers. Design ordinal scale.
Attributes Price(10) Weight Antibacterial Nutritive After To (10) properties 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 most P D M Like P D M Neither like nor Dislike P D M Dislike P Dislike the most D M P D M
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 sold in one year 230 205 Price /each in Rs. 46000 45000 Commission earned per vertical 10580000 4000 9525000 4500 Total sale Rs. Total profit Rs. 920000 922500
Hero Honda Passion TVS Victor GL 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 C Unfavorable D E Neutral F G H I J Favorable K
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 1. Attitude is measured from the point of view of intensity of the likes and dislikes 2. Interval data is needed 3. It is absolute 4. Examples – Interval Scale Ranking Scale 1. Attitude is measured from the point of view of intensity of preferring one product over other. 2. Ordinal data is needed 3. It is relative 4. Example – Ordinal scale, Semantic differential scale
Construct Likert Scale, Perceptual Map and Semantic Differential Scale Likert Scale to study consumer satisfaction with tyre-brands +1 Agree 0 -1 -2 Strongly disagree
Score out +2 of Attributes Strongly Agree Cost friendly Grip Wear & tear Rubber – quality longevity
Neither Disagree agree nor Disagree
Brand MRF JK Apollo
Score 2+2+2+2+2 = 10 2+1+2+1+2=8 2+1+0+0+0=3
(ii) Semantic differential scale to understand the images in the mind of consumers for washing machine manufacturers Remark Excelle nt +3 W Bette r +2 V Goo d +1 LG Averag e 0 Poo r -1 Attributes Tradition al Unreliabl e Weak Non custfocused Non response Mor Wors e t poor
Score Attributes Progressiv e Reliable
Strong Custfocused Responsiv e Brand Sign Whirlpool W Videoon V
Score +3+2+2+3+2 = 12 +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 RIM BHARATI TATA Solution : +3 Reliability Tangibility Responsiveness Assurance Empathy +2 +1 0 -1 -2 -3 Reliability +3 +3 -2 Tangibility +2 +2 -3 Responsiveness +1 +2 0 Assurance +1 +3 +1 Empathy +1 +3 +1
Brand RIM BA
Score +3+2+1+1+2 = 9 +3+2+2+3+3=13 -2-3+0+1+1=-3
Bharati BH Tata TA
Construct Semantic Differential scale for Management Institutes (Leading) in India
Attributes Excell ent
Bett Goo Avera Po er d ge or
+3 Reputatio n Success of placement Quality of Placemen t Infrastruct ure Faculty Teaching Methodol ogy Special Units Admissio n eligibility
Ver Wor y st po or -2 -3
Reputation: High rank, tie up with foreign Universities / Instt., admission tests are toughest, have international recognition, best aluminus Success of placement: 100% placement, multiple placement option Quality of placement: Abroad placement with MNCs, Average salary best among top „B‟ schools Infrastructure: provides financial aids, convenient location, high standard hostel & mess, high speed internet facility, all class room with LCD, high class book library Faculty: Well trained faculty, research done by faculties, visiting faculties from Industries Teaching Methodology: Good counseling, student faculty ratio 1:1, industry interaction as part of syllabus Special units: Known for marketing programme, known for mass media and finance programme Admission eligibility: Students with work experience, only engineers
Solution: Construction of Perceptual Map
High price (Rs.) 12000 11500 11000 10500 # Kelvinator BPL LG $
Direct cool Whirlpool
9500 9000 8500
LAST CHAPTER – APPLICATIONS OF MARKETING RESEARCH
Product research areas (1) Formulating new product
Marketing research techniques Regression Technique, Benefit Analysis (2) Product Line Perceptual Map Extension / Brand Extension (3) Test Marketing Experimental of new product research design (4) Re-launching of Qualitative Research declining product or Perceptual mapping
CASE STUDY EXAMPLES (a) (b) (c) (d) Apartment on wheels Makeup room on wheels Hotel apartment McKinney Electronic Toll Collection Pass (ETCP)
Product research would be also applicable to find out the reactions of consumers to manual cameras vs automatic cameras. In addition to
specific likes or dislikes of each product category, brand preferences within the category could form a part of the research. The objectives may be to find out what type of camera to launch and how strong the brand salience for the 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? Till 1992, if a movie was to recover just cost of production + distribution + marketing; it would have stayed in theatres for 50 days. (Minimum 3 show per day, all over India) The revenue earning ability of movies was not great because overall affordability of the society was weak. The balcony ticket during 1960-70 was Rs.1.50, which increased to Rs. 2.00 during 197080. It became Rs.20 by 1995 and then to Rs. 50 by 2005 for single screen cinema. Given below production + marketing cost for a movie, decade-wise, as well as the revenue per territory for different viewerships.
(1) Sr. No.
Production +Marketing cost for a movie – decade wise Decade Production + Hit movies Marketing cost in Rs. Cr. Upto Rs.0.50 Dosti, Jangali Kasmir ki Kali, cr. Aaradhana, Daag, Aarjoo, Farz, Suraj, Sangam, Upkar Upto Rs. 0.75 Bombay to Goa, Janjeer, Bobby cr. Hathi Mere Sathi, Amare Prem, Kati Patang, Deewar, Roti, Trishul, Don, Shole, Roti kapada Aur Makan, Pyarab-Paschim Upto Rs. 1.25 Karma, Ram-Lakhan, Tejab, Cr Dostana, Aakhir Rasta, Himmatwala, Tohafa Upto Rs. 50 Laggan, Koi Mil Gaya, Krish, Cr. Devdas, OSO, Welcome, K3G
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: Balcony Movie ticket cost Revenue (all India) Movie stays for 50 100 175 days days days Rs. 1.50 Rs. 0.50 0.48 0.65 0.80 Cr. Rs. 2.00 Rs.0.75 0.74 0.90 1.10 Cr. Rs. 5.00 Rs.1.25 1.25 1.50 1.75
Sr. Decade No.
1 2 3
60-70 70-80 80-90
Cr. Rs.2.0 Cr. Rs.10.0 Cr
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 0.035 0.29 0.15 0.44 0.070 0.60 0.15 0.75
50% viewership 90% viewership d)
Bollywood invented new channels of distribution, since 1992 Example Khalnayak - 0.75 cr), K.K.H.H. - 2.25, Mohabbatai – 7 Cr., Devdas -12 Cr. K.K.H.H. – 11.37 cr., Mohabbataien – 6.5 Cr., Dil to Pagal Hai – 6.4, Hum Aap Ke Hai Kaun, 4 Cr., Kaho Na Pyar Hai – 3.21 Cr., Laggan – 2.87 Cr., Mansoon Wedding – 60 Cr., Devdas – 12 Cr., Koi Mil Gaya & Krish – 10 Cr. & Kaho Na Pyar Hai – 2 Cr., KaranArjun – 0.50 cr., Krish & Koi Mil Gaya – 12 Cr., Murder – 20 Lakhs
Year Invention 1992 Music right 1995 Export Rights
1997 DVD Satellite
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 Single Multiplex Total screen cinema 14 cr. 2 cr. 16 Remark
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 VARIOUS REGIONS.
Independent sample test to check for variation in responses for preferred brands (Indian or Foreign) based on region and the significance level to be 0.05. it was found that the significance was observed to be greater than 0.05 thus proving that variation exists in the responses of consumers of various regions for Indian and Foreign brand preference. 75% of the respondents preferred buying Indian brands to foreign brands and this was seen on an overall basis even though, brands mentioned except Nirmal are foreign origin. Their adaptation to indianisationis of great importance. Imported products may be more referred as foreign products. Zonal differentiation exist and North szone has more liking for foreign products compared to South and West. South has more affinity for Indian Brands. The most popular brands as found from the survey were the well-known brands such as Lux Soap, Maggi Noodles and Nestle Chocolate, which shows that in case of Maggi
not just the parent brand, but also the Nestle chocolates are really popular among the consumers. This is not really the case with the other parent brands. INFLUENCE OF CULTURE AND TRADITION ON BRAND PREFERENCE The significance is observed to be greater than 0.05 suggesting that the responses of consumers vary between regions. BRAND ATTRIBUTES CONTEXT IN THE INDIAN
With regards to friends / family influence, it was found that it had a moderate to low influence on respondents. Also the brand name had a high to moderate influence, whereras quality had a high influence on the purchase decision of the respondents. CONCLUSION Consumers across the world respond more favourably to brand marketing that shows sensitivity to local preferences. Brand extensions research yield an important insight and it is observed from the survey that there is
difference in responses from people of North, South, East and west regarding whether traditions and culture influence the choice of brand extensions. Multiple brand names or brand extensions tend to create confusion among people in the various regions. RECOMMENDATIONS Marketers marketing products in religious and culturally diverse countries need to remember that in each purchase situation the consumer brings a set of cultural experiences and preferences to a particular product, brand or brand extension. Marketers need to adopt different strategies and techniques to understand consumer preferences in culturally diverse markets. Illustration 2 – Lux Soap and changing consumer behaviour Research Problem 1) Whether Shah Rukh Khan is the right choice as a male ambassador for Lux.
To test this we will have to find out whether people associate Shah Rukh 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.
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 Masculine 5 6 0 Feminine 1 2 1 Status 3 5 2 Sophisticated 4 3 1 Cool / Hep 5 4 1 Glamorous 2 1 1
1 2 3 4 5 6
Summary of Findings Correlation There is not a significant Difference There is a significant Difference There is a significant Difference
1 2 3
Glamour Feminist Mascutinity
4 5 6
There is a significant Difference Sophistication There is not a significant Difference 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 analysis (Data obtained in
Multivariate (Simultaneous Analysis of two or More variables
Single variable) Testing of hypothesis analysis Correlation
HYPOTHESIS 4.0 INTRODUCTION In the chapter on preparation and tabulation of data we discussed the appropriate procedures for collection and tabulation. Once we tabulate the data we need to analyze it, i.e. is we should verify the hypothesis stated in the problem. To do so we need to learn hypothesis-testing methods. If the manager of a shopping mall wants to find out if customer satisfaction is at least 90 percent, we can test the validity of this hypothetical parameter by
the use of hypothesis testing. Hypotheses test, also known as tests of significance, enable us to decide on the basis of the sample results if the deviation between the observed sample statistic and the hypothetical parameter value (or) statistic is significant (or) might be attributed to chance (or) the fluctuations of sampling. 4.1 METHOD OF HYPOTHESIS TESTING Definitions of Hypothesis (i) Hypothesis – It is a statement or assertion about the statistical distributor or parameter of statistical distribution. Alternatively hypothesis is a claim to be tested. (ii) Null hypothesis – A hypothesis of „no difference‟ is called null hypothesis (iii) Alternative Hypothesis – It is a hypothesis to be accepted in case null hypothesis is rejected. In other words, a complementary hypothesis to null hypothesis is called alternative hypothesis. 4.12 Steps In Formulating And Testing
Testing for statistical significance follows a well-defined pattern. Though one may not be able to understand all the terms in these steps at this stage, we are mentioning them here. They will be discussed in subsequent chapters. The steps are as follows: State the null hypothesis: The 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.
2.5% of area Rejection region
95% of area 2.5% of area Acceptance region Rejection region
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 twotailed) to evaluate the hypothesis, (4) the sample standard deviation, and (5) the size of the example. Let us assume that the mean has actually moved from 1500 to 1470. Our null hypothesis is that the average purchase is 1500. This is false. The probability of not finding this out, which is nothing but assuming that the given hypothesis is correct, is (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 is Correct Reject H0 Wrong –
true HA true 4.15
is Wrong Type-II error
Type-I error – Correct
Selecting A Test
Three questions should be raised when choosing between various tests. How many samples does the test involve? One, two or K? If moor than one sample is involved, are they related or not? What is the type of data? Nominal, ordinal, interval, or ratio?
Questions like the size of the sample, the quality of the sample size and weighted data can be raised. These questions will be answered in advanced statistics books and researchers should make use of them when required. Two samples are often used when there are two different products. Two samples, one for each product, are taken and tested to find out whether they belong to the same population.
Table 4.1 lists the various statistical techniques appropriate for different measurement levels and test situations. ANOVA is discussed in the text, but in a separate chapter. Only the most commonly used tests are surveyed in the following sections. Non-parametric tests except chi square tests, call for an involved discussion and so are not discussed here. Refer to advanced spastics books for studying these methods in detail. 4.2 CHI SQUARE (χ2) ANALYSIS This is the most widely used non-parametric test, particularly for nominal data, but it can k also be used for higher scales. It is used for actual values rather than percentages. It is used to find if difference between the χ2 = ∑
(Oi – Ei)2 Ei
Observed categories significant.
distribution of and expected
data among distribution is
One sample Test In this test, we first note the expected (hypothesized) frequencies in each of the categories. Then the values of actual frequencies are compared with the 2 hypothesized frequencies. The value χ 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 to buy Oi interviewed 14 90
Self employed (like doctors,
Percent E (No. Fre Interviewed/ (P 200) 45
lawyers) Front Line workers Administrative Academic Total Two Sample Test
17 14 15 60
40 40 30 200
20 20 15 100
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 = ∑ ∑
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 CRITICAL VALUE OF Z AND
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
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
1 2 3 4 5 6
Masculine Feminine Status Sophisticated Cool Glamorous
for Lux for SRK 6 0 2 1 5 2 3 1 4 1 1 1
Summary of Findings Correlation Glamour There is not a significant Difference Feminist There is a significant Difference Mascutinity There is a significant Difference Status There is a significant Difference Sophistication There is not a significant Difference Cool / Hap There is a significant Difference
1 2 3 4 5 6
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
\ / / / /
\ \ \ \
non linear relationship
no relationship . . . . . . .. ...... . . . . 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 Y: 3 5 4 4 4 6 8 9 9
Worksheet for the calculation of correlation Series X 2 5 4 6 9 26 Series Y 3 4 4 8 9 28 XY 6 20 16 48 81 171 X2 4 25 16 36 81 162 Y2 9 16 16 64 81 186
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 n obtaine d in trainin gX
1 2 3 4 5 6 7 8
4 6 1 3 9 7 10 2
Ranks on the basis of field sales performan ce Y 5 8 3 1 7 6 9 2
Differen Differen ce ce square d=( X-Y) d2
-1 -2 -2 2 2 1 1 0
1 4 4 4 4 1 1 0
4 1 ∑ d2 = 24
The mathematical formula to compute coefficient of rank correlation is as follows
6 *∑d2 Rs = 1 N (N2 – 1) Where rs means coefficient of rank correlation, n means no. of observations ( here no. of salesmen), d means difference between two ranks. Substituting values, (6) (24) rs = 1 10 ((10)2 -1) = 1 - .145 = .855 The value of rs equal to more than .8 indicates high degree of correlation between independent variable
x and dependent variable y. here rs is .855 means there is high degree of correlation between ranks issued to salesmen during training and field sales performance.
CHAPTER 5 SETTING OF AN IMPLEMENTATION OF MR PROJECTS Following steps are involved: Step 1: Defining research problem identifying research objectives and
Management problem and marketing research study problem could be different as explained in following table:
Management problem MR study area 1. Allocate ad-budget Estimate awareness among various media. generated by each meida. 2. Change the Design a test marketing programme marketing situation such that the effect of new programme can be estimated. 3. Increase the sales Measure the current of a product image of the company as well as the of the product and project sales with image.
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 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 questionnaire
(e) Sample Plan of Pune
Universe – Residents
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 You prefer your detergent in: Sachets (10 gm, 20 gm, 50 gm, etc) Packets Jars Bigger containers Any other (please specify) _______ If your preferred detergent is not available, you go for: First Choice ______________ Second Choice ___________ Do you keep a stock of detergents in your home? Yes No Most preferred detergent among people you know Surf Ariel Nirma Wheel Rin Tide Henko
Any other _______ 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.
As a part of our survey, we visited 52 houses. It was found that 12 households gave all their clothes to launderettes, while 40 households washed their clothes at home. Since the objective of our survey was to find out which detergent is popular in the households, we did not take into consideration the 12 who depended entirely on launderettes.
Sample Size = 40
Of the 40 people interviewed, it was found that 21 households used Surf, while 19 of them washed their clothes with other detergents. This is a clear indicator of the popularity and the presentation of this particular brand in the consumer‟s mind and in the market.
3. Sub-brands of Surf used
20 15 10 5 0 Surf Excel Surf Ultra
Surf Super Excel
Surf 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 easy on Fabric Stain Removal Others
Sample Size = 21
As indicated above, whiteness that the detergent provides, say 8 of the consumers, is one of the most potent influences while buying the detergent. The second most important influence is the fact that it is easy on the fabric, say 5 of them. Other influential factors are its gentleness on hands and its good stain removing capacity (Daag dhoondte reh jaaoge). 5. Consumer awareness with respect to the advertising campaign of Surf.
10% 32% 24%
Lalitaji Surf Excel hai Naa Dho Daala Dhoondte Reh Jaaoge
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 4 3 2 1 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 Others Tide 1 1 Rin Wheel 2 Ariel 4 7 7 2 2 4 6 8
Sample Size = 24
Amongst many existing brands available (excluding Surf) in the market, the most frequently used ones are Rin and Wheel followed by Ariel with others (Local) constituting the rest of the market. In the chart indicted above, 19 were nonusers of Surf,
while 5 of them also preferred an additional detergent besides Surf. 10. Major influencers while making a purchase Factors No. Friends 3 Neighbours 4 Advertisements 13 Self-experience 19 Others 1 Total 40 While conducting the survey, personal experience of using the product along with many others over a period was major influence while indulging in the purchase. Apart from this, effective advertising was a close runnerup and was largely responsible in influencing people while buying their preferred brand. 11. Quantity usually purchased Quantity Less than 1 kg 1-2 kg 2-3 kg 3-4 kg More than 4 kg Total No. 10 20 6 3 1 40
As is predictable, due to the fact that the survey was done in an area which was middle – class one, the housewives usually went in for the 1-2 kg pack and the frequency of purchase was once in a month which is depicted in the chart above.
12. Frequency of purchase Frequency Once a week Once a fortnight Once a month Once in two months Total No. 3 11 23 3 40
Usually households preferred to buy their stock of detergent once in a month, as is mostly the case with all stock being ordered along with the ration that comes monthly. But still many households also buy it fortnightly. Packets (500 gm, 1 kg, 2 kg) are the outright winners in this section with more than 50%
consumers in this category preferring this particular style of packaging. However, Jars were also preferred because of their multiutility purpose after using the primary product. 14. Alternative brand of detergent First choice Brands Rin Wheel Surf Tide Ariel Henko Nirma Total Second choice Brands Rin Wheel Surf Tide Ariel Henko Nirma Total
No. 9 8 10 1 7 4 1 40
No. 11 12 5 6 3 1 2 40
There were 10 non-users of Surf who preferred it as their first choice of purchase in case of non-availability of their preferred brand. Users of Surf voted for Ariel, Rin and wheel as their first choice given the same situation. 15. Stock of detergents
More than 50% of the households did not keep a stock of detergents at home and resorted to purchase only when the need arose. 16. Preferred detergent acquaintances of consumers amongst
The general impression that we get after conducting the survey is that Surf rules the market because it was revealed that amongst the acquaintances also Surf was the most popular brand followed by Ariel and Nirma. Findings
In Q.No. 7, eight respondents stated that they would like more schemes to be associated with Surf. However, when they were asked that what change would they suggest in their detergent (Q.No. 8), only 5 of them suggested more schemes. Surf Excel (17/21) is preferred by the consumers because of its extraordinary whiteness (8/21) and the fact that it is easy on the fabric (5/21). When it comes to housewives the verdict is almost equal with 12 saying „Yes‟ and 11 saying that they do not use Surf but when it comes to students, Surf is the clear winner with 6 out of 7 favouring the product. Of the 40 consumers surveyed, 21 Surf and of those 21, 19 were women as Surf is more a product that homemakers use. Of the 19 non-users, 16 again were women with the rest being men who had genuine knowledge about the product and who had used it at one moment of time or another. Of the users of Surf, all of them were more or less equally distributed when categorized according to the income
group with the higher income group categories preferring Surf a little more as Surf is costlier than most of the other brands (13/21). An interesting fact is revealed, 4 suers stated that some of their clothes were washed either by themselves or by their maids; however the expensive clothes were given to launderettes. We also find that the trend of people who are in the different categories is almost the same with almost an equal number in each category. One interesting observation may be possible. It is seen that the less than 25 age group of users are more inclined to sue Surf and as the age group increases the number of users decrease, this may be due to the new positioning that Surf is using where it is targeting the younger generation too, through its advertisements. Surf is popular with acquaintances of both the users and the non-users. In the acquaintances of users section Ariel follows (5/21) while in the alternative category Nirma (6/19) and Ariel (4/19) are preferred widely.
Recommendations for designing marketing strategy Of the sub-brands, Surf Excel was the most recognized one, so the company ought to take some measures to make the consumer aware about other subbrands. If possible, pricing should be reviewed, with many consumers citing it as a negative factor. Surf being viewed as a premium product could come up with a lower priced subbrand for more rural market penetration to compete with Wheel, Nirma and so on. More schemes should be introduced to attract non-users. Advertising standards should be maintained, if possible improved, as advertisements have contributed immensely to the awareness level and usage of the product.