Steps in market research

CMI Oral Care - 2010

BASIC OVERVIEW

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“Market research is science applied to marketing. It is not perfect mathematics, but it is not astrology either.”

- Someone bright and famous

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At the end of this presentation you will…

Have an overview of the research process – what it can or cannot do.

Be able to understand the types of research and their applications

Be aware of how to diagnose an in market problem

Learn how to work an innovation through launch

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1. Overview of Role of research

a. Understanding Users of research

b. Why do we need research?

c. Types of Research

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Users of research in marketing

Marketing team

Brand /Marketing managers

Category heads

Business / Country heads

R&D team

Advertising / Planning agencies

Planners

Creative

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Team Structure

Category head Operating company head

R&DMkting mgr

Brand mgr

Ad planner

Creative

Mkting mgr

Brand mgr

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New launches, current brands handled

Which Aspect of research?


Category heads


Portfolio decisions, growing franchise, strategic decisions

Revenue, Bottom line, activation learning, focus markets

Product related

Research and Development

Similar to BM’s , project related but focused on communication

Advertising – Planners

Evaluation of creative copies

Advertising - Creative

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How can research help?

New launches, current brands handled


-Understand market and consumers.-Evaluating success of the elements of marketing mix, BrandREQUIRE: Deep consumer and brand understanding , objective view

Category heads

Portfolio decisions, growing franchise, strategic decisions

-Overview of category-Portfolio decisions.-Strategic understanding of brands / categoryREQUIRE: Bird’s eye view, understanding of what’s working and what’s not

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-Ensure revenue/ Bottom-line market share targets are met.-Understand impact of on ground activities and performance of mixREQUIRE: Summary of performance metrics

-Understanding performance of products vs competition-Inputs into product developmentREQUIRE: Importance of product attributes, directions of improvement for existing products.


Revenue, Bottom line, activation learning, focus markets

Product related

Research and Development

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Similar to BM’s , project related but focused on communication

Advertising – Planners

Evaluation of creative copies

Advertising - Creative

-Understanding of consumers / market to plan the brands future along with marketing.-Impact of communicationREQUIRE: Deep consumer and brand understanding, evaluation of communication.

-Understand how communication is received-Clear understanding of which elements are working/not and why?REQUIRE: Objective view

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Good to remember !

Appreciation of research : Creative

Need for detail : Brand manager vs VP

Aspect that needs looked at : R&D vs Brand manager

Perspective : Long vs Short term

Different users of research may vary in their:

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Why Research?

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Points to PONDER

What could be the pitfalls in the following cases?

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Existing technology Shares declining

Need new communication

Create concept / product

Launch product Take corrective action

Market Visit to understand

Boss likes the ad

Air new communication

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Don’t shoot in the dark

Existing technology

Create concept / product

Launch product

Shares declining

Take corrective action

Market Visit to understand

Need new communication

Boss likes the ad

Air new communication

Technological innovation,

rather than a consumer one,

is it accepted by consumers?

Technological innovation,

rather than a consumer one,

is it accepted by consumers?

Could tackle surface issues, rather than root

Could tackle surface issues, rather than root

How does the target group

react to the ad? Does it meet its

objective?

How does the target group

react to the ad? Does it meet its

objective?

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CAVEAT !!

- Not only to be used to only “Validate” : keep an open mind-The right inputs are critical – Garbage in, Garbage out

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Final thoughts

Research helps better decision making, but it does

not replace marketing decisions.

Use research for an objective holistic view, instead

of shooting in the dark.What you wish to market should determine

research design, never the other way around.

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Types of Research

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Developmental Evaluative

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Time

Developmental Research Evaluative Research

DEVELOPMENTAL RESEARCH IS LIKE PREPARING FOR AN EXAM – THE REWARDS OF DOING A THOROUGH

UNDERSTANDING JOB AT THE OUTSET IS INVALUABLE…WE KNOW WHAT HAPPENS IF YOU DON’T STUDY ENOUGH !

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Developmental

Explorative : Mainly Qualitative and some QuantitativeResearch with consumer at the centerFor understanding how the marketing

elements are received by consumers, how it fits into his/her life

Improving the marketing elements

Time spent here is an investment. If the mix fails to test well finally, then it will mean going back to the drawing board

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Evaluative

Against an yardstick of measurement: Quantitative Research done among “representative” sample of TGTo see whether we “measure up” or notEnsure that the correct action standards are set.

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Which type of researches do these fall under? Quantitative Product test to understand flavour

preference of juices Quantitative Product test against competitive

benchmark Quantitative Ad test Understanding which communication routes

work Market segmentation study Simulated test market

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2. Understanding where research fits in

a. Overview

b. Diagnosing Issues / Opportunities

c. The Innovation management process

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Overview

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Example

Dove Soap Dove Shampoos

Develop mixConcept

Product

Communication

Launch

Track launch

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Overview of the ongoing research process for a brand

Develop Mix

Launch Mix

Track Mix

Mix related

Identify elements to

change

Tactical

On ground corrective action

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Diagnosing Issues / Opportunities

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Develop Mix

Launch Mix

Track Mix

Mix related:Identify elements to change

On ground corrective action

Evaluating Mix / Activities post launch

1. Directions for corrective action

2. Inputs into Mix development

Diagnosing Issues / Opportunities

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The critical first step is to identify the problem or spot the opportunity and articulate it

concisely

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From Surface Issues to Key Issues to Marketing task

Key IssueKey Issue

Restaurant has good levels of traffic in the week but your pub/bar is practically empty at weekend lunchtimes

Restaurant has good levels of traffic in the week but your pub/bar is practically empty at weekend lunchtimes

Brand X Detergent bar – is losing share in a declining market

Brand X Detergent bar – is losing share in a declining market

Marketing taskMarketing task

Get parents (of children aged 8-16) who don’t like eating in a smoky atmosphere, to bring their families in to the restaurant to try the weekend lunchtime menu

Get parents (of children aged 8-16) who don’t like eating in a smoky atmosphere, to bring their families in to the restaurant to try the weekend lunchtime menu

Get SEC CD housewives to re-engage with Wheel green bar, even when other brands are on promotion

Get SEC CD housewives to re-engage with Wheel green bar, even when other brands are on promotion

Surface IssueSurface Issue

Restaurant is practically empty at weekend lunchtimes because families (core target for this occasion) don’t like the smoky atmosphere

Restaurant is practically empty at weekend lunchtimes because families (core target for this occasion) don’t like the smoky atmosphere

Brand X det bar loyalty decline, primarily amongst SEC CD housewives, is driven by poor product experience coupled with price premium & low key promotional programme

Brand X det bar loyalty decline, primarily amongst SEC CD housewives, is driven by poor product experience coupled with price premium & low key promotional programme

Mass detergent

Bar

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Market dynamics

Category performance

Value market size

Volume market size

Value share

Volume share

Mix elements

Place

What happens

wherever our consumers

buy the brand

PropositionThe brand that

consumers have in their

headsThe brand’s

values, benefits & reasons to

believe

Promotion

Getting our message

across to the consumer

Pack

The packaging

the consumer

sees & uses

Price

The price the consumer

pays, regular price or on promotion

Product

The product or service

offered

Buying behaviour

How much they buy

Loyalty Consumption

How many people buy

Penetration

Unilever’s 6P tool

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It’s a thinking framework to help you get to the key issues and opportunities on your brands

It is about prompting teams to ask hard questions and seek the right data to get to the key issues.

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All surface issues can be linked back to the marketing outcome desired

Use existing information of brand tracking (aspects covered later)

Do use instinct and gut feel to table the issues

“My daughter hates the product”

“I never saw the ad on TV!”

“Its selling like hot cakes near my shop”.

“No body likes this brand anymore”

But check if data supports the same !

Product: Product scores vs competitors among TG

Promotion: Media plans, SOV, GRP’s

Volume share, Place: Sales by channel , by region

Proposition : Brand Health (pyramids)

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Applying it to an example...

Det bar loyalty decline, primarily amongst SEC CD housewives, is driven by poor product experience coupled with price premium and lowkey promotional programme

Key issue

Understanding the 6 P’s and category

Surface IssueSurface Issue

Brand X Detergent bar – a profitable and significant part of the company ‘s detergent portfolio – is losing share in a declining market

Brand X Detergent bar – a profitable and significant part of the company ‘s detergent portfolio – is losing share in a declining market

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Det bar loyalty decline, primarily amongst SEC CD housewives, is driven by poor product experience coupled with price premium and low key promotional programme

The Key Issue is a highly specific and insightful description of the issueor opportunity, identified by interrogating and cross-referencing data from the various levels

Key Issue

WHAT?WHAT?

• What is the issue or opportunity?

• Is it about penetration, consumption or loyalty, or a combination?

WHO, WHEN,

WHERE?

WHO, WHEN,

WHERE?• Amongst whom?• Where (regions/

channels)?• When (time of year)?• Not all of these will

always be relevant/ important

WHY?WHY?

• Which of the 6Ps is the key to the issue or opportunity?

• Might be more than one!

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Detective Ways of Working

1. It’s asking the RIGHT Question that counts

2. Think WHO, WHAT, WHEN, WHERE, WHY

3. Be evidence-driven and objective. Hunches are OK as a starting point but MUST be validated

4. Dig deep for the AHA moments. No point telling everyone what they already know

5. Work in mini-teams – bringing together expertise and different perspectives

6. You might not have the evidence you need readily available. Think of clever ways to find it (e.g. use proxy data from neighbouring country, other brands)

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Asking the right question is critical!!

Here are some prompts to explain it further:

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Does the Product delight consumers?

Does the product meet the expectations set for it by the proposition?

Does the proposition make specific claims for the product? Are they met? Will consumers notice them? Will consumers appreciate them?

What are the product benefits set out in the proposition? Are they relevant to and motivating for consumers?

How does product performance compare with competitors?

Are we seen as better or worse than our competitors?

What advantages do we have? What disadvantages are there?

Check out the latest consumer product tests. Do those advantages/disadvantages matter to the consumer? Can consumers detect differences in product performance?

How can we improve product performance? What changes could we make to the

formulation/recipe? What differences would these make to the

performance? How much would they cost? Does the benefit

outweigh the cost?

Does the product meet the expectations set for it by the proposition?

Does the proposition make specific claims for the product? Are they met? Will consumers notice them? Will consumers appreciate them?

What are the product benefits set out in the proposition? Are they relevant to and motivating for consumers?

How does product performance compare with competitors?

Are we seen as better or worse than our competitors?

What advantages do we have? What disadvantages are there?

Check out the latest consumer product tests. Do those advantages/disadvantages matter to the consumer? Can consumers detect differences in product performance?

How can we improve product performance? What changes could we make to the

formulation/recipe? What differences would these make to the

performance? How much would they cost? Does the benefit

outweigh the cost?

Product

Will product performance meet

consumers’ expectations?

Our second point of contact with the consumer is when she uses our

product.Does that experience make her want to go out and buy it again

next time she shops the category?

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Axe – Argentina case study

Tracking the brand revealed : High levels of penetration Consumption highest among deo’s in Argentina.

Seemingly, no problem ; Strong brand However looking at consumption figures for Deo’s in other Lat

Am markets revealed Argentina consumption could increase further

Diagnosing consumption from usage studies: Argentineans only use Deo’s in underarms.

Focus on increasing consumption among TG Development of “Show them the way campaign” : All over body

use. Growth in sales through increased consumption – Campaign

now used across the world.

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Criticality

Existing brand Higher returns – less expensive compared to

innovation Consumer / Competitor pulse

Needs determination / perseverance to identify

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The Innovation Management process

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Why Innovation?

Refresh the brand in the mind of the consumer. Good brands are those which stand for something.

Extend brands core proposition to different categories to grow the brand. ( Dove)

Reminding the consumer (More media spends, Variant launch)

Making proposition more relevant for the times (Lifebuoy).

Innovative products which change how consumers use the category , or add value to the consumer (Vimbar with plastic wrap)

CAVEATCan be innovation for Innovations sake , IS IT REALLY DIFFERENT OR OFFERING VALUE?Dangerous when the brand health itself is failing

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Innovation management process

Develop Mix

Launch Mix

Track Mix

Tweak MixOn ground corrective action

Developing and Evaluating Mix prior to Launch

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Innovation has two broad areas:- Developing and Short-listing ideas- Building on and Evaluating the final ideas

Develop Ideas

Screen ideas

Building Mix

Evaluate Potential

Launch

Track

PLE

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Develop Ideas

Screen ideas

Building Mix

Evaluate Potential

Launch

Track

PLE

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Developing Ideas

Generating the idea Communicating the idea

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Develop Ideas

Screen ideas

Building Mix

Evaluate Potential

Launch

Track

PLE

Category driver study

Bases MBA

Habits and Attitude

Mine Strategic Researches to Develop ideas

TNS Needscope

Consumer understanding – gut feel

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Generating Ideas – Product/CommunicationLook back

Habits , Usage and Attitudes studies Examples from around the world Existing Triggers/ Barriers studies Segmentation studies – targeting a new segment ( NeedScope). Shopper studies

Look around Adjacent categories Consumer immersions with TG Situational interviews Experts

Learn What do people think today about the Brand? How are they using the product ? What are their experiences?

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Communicating the Idea : Importance of “Language”

Connection is about the “foot in the door” - creating a little space in the consumer’s mindIf you want real innovation, it is about creating a new brainspot.

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Dove “Pro Age” vs Anti Aging

Other Examples..- Lakme : “All day lipstick” vs “9-5” lipstick- Parachute : “Hair oil massage”vs “1 hour Champi”

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P&G example : Same product , different positioning

Procter & Gamble introduced Fabreze in 1996 as a way to remove odors from smelly clothes. The company ran advertisements of a woman complaining about a blazer that smelled like cigarette smoke. Other ads focused on smelly pets, sweaty teenagers and stinky minivan interiors.

But Fabreze flopped. One of the biggest problems, P&G's researchers discovered, was that

bad smells simply did not happen often enough in consumers' lives. Because bad smells occurred too infrequently for a Fabreze habit to

form, marketers started looking for more regular cues on which to capitalize.

The perfect cue, they realized, was the act of cleaning a room, something studies showed its target audience did almost daily. P&G produced commercials showing women spraying Fabreze on a perfectly made bed and spritzing freshly laundered clothing. The product's imagery was revamped to incorporate open windows and gusts of fresh wind - an airing that is part of the physical and emotional cleaning ritual.

Today, Fabreze is one of P&G's greatest successes.

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Getting “Wow” propositions

Steps Must do’s Process

• Consumer insights • Consumer immersion along with past research

• Consumer connect , past research, Research

• Ideation • Get width of ideas •Workshop with extended team,

• Rough concepts • Clarity on one-line concept, why compelling?

•Team.

• Recycling concepts • Finetune language, whats working , whats not

•Connecting statements – team and consumer

•Finalisation for testing •Layout, pictures •Quantitative

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Develop Ideas

Screen ideas

Building Mix

Evaluate Potential

Launch

Track

PLE

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Develop Ideas

Screen ideas

Building Mix

Evaluate Potential

Launch

Track

PLE

Bases Idea Screener

Bases Bundle Builder

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Screening Ideas

Is it relevant to business strategy ? Is it feasible at all? New technology vs

Consumer perception Finally Consumer evidence – Initial size of

opportunityBases Idea generation, Bundle BuilderCan help you reject ideas or prioritize –

indication of whether it will cannibalize or grow franchise as well

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Develop Ideas

Screen ideas

Building Mix

Evaluate Potential

Launch

Track

PLE

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Building a mix

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Flow of Research - Concept

Sales Estimate (if high investment

product)

Determine potential, And price of formats

BASES 1

Screen best ideasQuantitative screening

Connection, Concept directions

Connecting statements

Fine tune conceptsRoutes

Check for format fitUsage comprehension

Qualitative fine tuning

Inputs fromProductresearch

Concept product fit (qualitative)

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Flow of Research - Product

Selecting Benchmarks - Consumer checks, restaurants /comptn- Prototype development and checking

Consumer Connect - Recycling to fine tune Prototypes

- Recycling to understand experience of use

Evaluate products - CPT : Check consumer acceptance of

product- STM ( BASES 2 )for Mix acceptance

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Develop Ideas

Screen ideas

Building Mix

Evaluate Potential

Launch

Track

PLE

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3. Evaluate

Concept product test : to finalize product mix, check concept product acceptance

STM : To evaluate the full mix potential

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CPT vs STM

STM required when Capex decision is hugeLaunch is a line extension, to check franchise

growth CPT useful to understand final range, Concept

product fit and product acceptance.The STM assumes the product and the

concept are final , therefore ensure that tested products go into the STM.

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Develop Ideas

Screen ideas

Building Mix

Evaluate Potential

Launch

Track

PLE

Full Mix test

CPT, BASES 2

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Screen ideas Evaluate Potential Track

New Brand/New benefit/Repositioning

Relaunch

Cost reduction

Idea screenerBundle Builder

Concept recycling

Bundle builder(If sig.Concept change)

Product tests

STM (For High Capex)

Ad test

Product tests

Creative DevelopmentResearch

Paired Comparison

Preview

STM

Preview

STM (If Largeinvestment for volume growth)

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Develop Ideas

Screen ideas

Building Mix

Evaluate Potential

Launch

Track

PLE

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Tracking research

Measurement Dipsticks Continuous tracks

Monitors brands in category Spends, campaigns Activities Brand health measures Imagery and Brand equity

Ongoing Household and Retail dataExploratory Triggers and Barriers Shopper Studies

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PREx

The continuous trend makes it clear that the sponsorship is driving the increase

Continuous trends help identify what causes what

x

x

0

20

40

60

% Interested in buying

POST

x

TV Advertising

Sponsorship of TV programme

JAN FEB MAR APR

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Brand Health Check

Managing a brand through an understanding of consumer equity and imagery perceptions

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BHC Module – the questions

Awareness and Claimed Usage Brand Health Check Brand Image Positioning

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PresencePresencePresencePresence Do I know about it?

Does it cater for me?RelevanceRelevanceRelevanceRelevance

Is it satisfactory?AcceptableAcceptableperformanceperformanceAcceptableAcceptable

performanceperformance

Does it have any advantages?AdvantageAdvantageAdvantageAdvantage

Can anything else beat it?ConvictionConvictionConvictionConviction

Brand Health Check builds pyramids which quantify a brand’s equity and answers these questions

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Brandpyramid

Share ofwallet

12%

16%

19%

26%

40%Conviction

Advantage

Acceptableperformance

Relevance

Presence 80%

60%

45%

30%

10%

As consumers move up the Pyramid they become more valuable

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Brand APyramid™

%

Brand Signature™

-7

-8

-5

4

30

Conviction

Advantage

Acceptableperformance

Relevance

Presence

The BrandSignature™ allows us to identify a brand’s relative strengths and weaknesses

80%

60%

45%

30%

10%

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Brand APyramid™

% Brand Conversion

= 33

= 67

= 75

= 75

= 80

1030

3045

4560

6080

80100

An example of how the Brand Signature™ is calculated

Conviction

Advantage

Relevance

Presence

AcceptablePerformance

Expected ConversionBased on all brands in the

Category

40

75

80

71

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Brand Signature™ Does the Brand get more or less

than its fair share?

-7

-8

-5

4

30

BrandSignature™

80%

60%

45%

30%

10%

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Measuring Brand Imagery

Positioning Profiles

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Measuring Brand Imagery – the question

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What do we get from the Brand Imagery question? Consumers are asked to select the brands they feel are

associated with the various image attributes. The basic output is the % of people who selected each of the

brands on each of the attributes. This absolute level of association is important to monitor

It tells us which brands are more associated with these different dimensions

And when measured over time it allows us to understand which marketing activities impact positively or negatively on certain image dimensions

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What do we get from the Brand Imagery question? Consumers are asked to select the brands they feel are

associated with the various image attributes. The basic output is the % of people who selected each of the

brands on each of the attributes. This absolute level of association is important to monitor

It tells us which brands are more associated with these different dimensions

And when measured over time it allows us to understand which marketing activities impact positively or negatively on certain image dimensions

But when you look across all of the responses on the image grid you will find that big brands (because they have more brand users and brand users pick their brands on most positive attributes) will have higher scores on most attributes

To look at which of the attributes differentiate one brand from the others in the category, we use an output called Differentiation (Positioning) Profiles

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What are Differentiation Profiles?

Removes effect of brand size, and statement popularity.

M

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What are Differentiation Profiles?

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How would you describe Fred and Bill?

Fred Bill

Their ears are roughly the same size, but relative to the size of his head,

Bill’s ears are much bigger than Fred’s.

We could use this feature to describe him to a stranger - it’s his most

prominent feature

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The brand size effect

70

60

50

30

Tasty

Good price

Modern

Traditional

Brand A

65

50

10

8

Brand B

30

20

18

15

Brand C

Because Brand A is a ‘big brand’, it is endorsed more on all measures

But this doesn’t tell us much about the relative associations of the brands and it can lead to apparent contradictions,

e.g. here Brand A appears to be both more ‘modern’ and yet more ‘traditional’ than the other 2 brands

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Example of Differentiation Profiles

30

20

18

15

Tasty

Good price

Modern

Traditional

Brand C(absolute figures)

-6

-5

6

0

Brand C(differentiation profile)

Initially Brand C appears strongest on ‘Tasty’ and ‘Good price’…..

…..however, once we remove the effect of brand size, we see that relative to other brands Brand C is perceived as ‘modern’

This reveals the true ‘profile’ (points of difference) of the brand and allows us to make direct comparisons with the profiles of other brands

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What do Differentiation Profiles tell us about a brand? It identifies which of the attributes ‘define’ a brand’s point of

difference from the competitive set As a rule of thumb, anything with a score of +5 is probably a

significant ‘differentiator’ for a brand

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What do Differentiation Profiles tell us about a brand? It identifies which of the attributes ‘define’ a brand’s point of

difference from the competitive set As a rule of thumb, anything with a score of +5 is probably a

significant ‘differentiator’ for a brand

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Strategic Research

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Types of strategic research

Habits and Attitudes

Need segmentation

Strategic pricing

Category drivers

Product Quality benchmarking

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Habits & Attitudes

In Philippines , an Habits and Usage study showed

Sinegang was a popular dish consumed by 50% of the population, and accounted for 10% of all dishes in the country.

The cooking process required a tamarind mix which determined the taste of the dish.

By developing a specific “Sinegeng tamarind” cooking aid for the dish, Knorr launched a successful extension of it’s bouillon business in Philippines

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Segmentation

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DominanceAssertiveness Individuality

NeedScope® uses these dimensions to describe human needs in different contexts as well as brands and their executions on all marketing mix factors.

Receptivity Passivity Affiliation

Inward directedIntroverted

Outward directed Extroverted

dimensions of human thinking, feeling and behaviour, that have been universally found by psychologistst

the NeedScope® framework is based on archetypes

Needscope: Model of Archetypes

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The Audi Case – Status 1982

BMW

VW

Porsche

Alfa Romeo

Audi

VolvoRoverJaguar

Mercedes

Peugeot

Renault

Honda

Opel

Toyota

Ford

Nissan

Mitsubishi

Hyundai

Seat

Mazda

SuzukiSkoda

Citroën

Fiat

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The Needstates and the Brands

BMW

VW

Porsche

Alfa Romeo

AudiVolvoRover

Jaguar

Mercedes

Peugeot

Renault

Honda

Opel

Toyota

Ford

Nissan

Mitsubishi

Hyundai

Seat

Mazda

SuzukiSkoda

Citroën

Fiat

Power & success (16%)

Superior status (15%) Practical & safe (26%)

At ease & basics (21%)

Modern fun (21%)

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BMW

VW

Porsche

Alfa Romeo

VolvoRoverJaguar

Mercedes

Peugeot

Renault

Honda

Opel

Toyota

Ford

Nissan

Mitsubishi

Hyundai

Seat

Mazda

SuzukiSkoda

Citroën

Fiat

Superior status (15%) Practical & safe (26%)


Modern fun (21%)

The Target Chosen

Audi

XPower & success (16%)

95

Audi 1970 - 1986

96

BMW

VW

Porsche

Alfa Romeo

VolvoRoverJaguar

Mercedes

Peugeot

Renault

Honda

Opel

Toyota

Ford

Nissan

Mitsubishi

Hyundai

Seat

Mazda

SuzukiSkoda

Citroën

Fiat


Superior status (15%)


Modern fun (21%)

Monitoring 1986

Audi

X

Practical & safe (26%)

97

BMW

VW

Porsche

Alfa Romeo

VolvoRoverJaguar

Mercedes

Peugeot

Renault

Honda

Opel

Toyota

Ford

Nissan

Mitsubishi

Hyundai

Seat

Mazda

SuzukiSkoda

Citroën

Fiat




Modern fun (21%)

Monitoring 1990

Audi

X


98

Audi 2001

99

BMW

VW

Porsche

Alfa Romeo

VolvoRoverJaguar

Mercedes

Peugeot

Renault

Honda

Opel

Toyota

Ford

Nissan

Mitsubishi

Hyundai

Seat

Mazda

SuzukiSkoda

Citroën

Fiat




Modern fun (24%)

Monitoring 2001

AudiX


100

Audi today

101

BMW

VW

Porsche

Alfa Romeo

VolvoRoverJaguar

Mercedes

Peugeot

Renault

Honda

Opel

Toyota

Ford

Nissan

Mitsubishi

Hyundai

Seat

Mazda

SuzukiSkoda

Citroën

FiatPower & success (26%)



Modern fun (24%)

Practical & safe 17%)

Monitoring 2004 - Reached their goal, but it took 20 years.

AudiX

102

Category Drivers

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Nielsen - Market & Brand AdvisorKey objective: provide a powerful strategic platform for Growth

Reliable: robust quantitative study (typically over 800 consumers)

Identify Blue ocean / White spacesTipping point / Emerging opportunities

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Market & Brand Advisor: Drivers of the category

Importance of functional / emotional vs. brand vs. price image drivers

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Market & Brand Advisor: Reach of the drivers

Different consumers have different needs; MBA analysis pulls apart this distinction

Moisturizes & Protects

Family & Everyday

Easy & Gentle Clean

Lasting & Lovely

Fragrance

Hair Appearance

Natural Ingredients &

Nutrients

Dandruff & Scalp Care

Revitalize & Pamper

Critical 57% 55% 39% 2% 6% 4% 3% 12%

Major 33% 43% 56% 77% 17% 2% 23% 78%

Medium 5% 0% 1% 18% 41% 18% 15% 8%

Minor 4% 0% 1% 2% 36% 39% 32% 1%

Turnoff 2% 2% 4% 1% 1% 37% 27% 1%

Brand equity & variety

Salon QualityAttractive & Easy to Use Packaging

For Younger, Active Women

Price PremiumCheap / Value

Perception

Critical 1% 2% 1% 1% 90% 14%

Major 77% 2% 1% 2% 10% 70%

Medium 16% 9% 52% 5% 0% 13%

Minor 3% 83% 40% 43% 0% 2%

Turnoff 3% 3% 5% 49% 0% 1%

Niche/Polarizing

Niche/Polarizing

106

Market & Brand Advisor: Brand ratings

107

Market & Brand Advisor:Decide which scenarios to play

Example of Scenario:Imagine that you notice a new & improved shampoo with the description below…

Would it make you more or less likely to purchase?

“Makes hair smooth & silky” is an end benefit expression on which consumers have unmet aspirations AND appeals to the key group of trend riders …

Moisturizes & protects (10%)Protects dry/damaged hair 61Moisturizes your hair 60Makes hair smooth and silky 43Makes your hair healthy 41Has nutrients / vitamins 40Leaves your hair feeling good to touch 36

Natural ingredients & nutrients (niche or polarising)Has natural ingredients 71Has nutrients / vitamins 61

In addition, a link between the Natural Ingredients and Moisturizes drivers exists via “nutrients/vitamins” attribute.

The opportunity therefore exists for the Natural brands to create more explicit links between natural perceptions and the end-benefits (smooth & silky hair) that contribute

towards the core driver of Moisturizes & Protects

108

Market & Brand Advisor: MBA also becomes a framework of reference for the innovation journey

-100

-80

-60

-40

-20

0

20

40

60

80

100

Moisturizesand Protects

10%

Family &Everyday 8%

Easy, GentleClean 8%

Lasting &Lovely

Fragrance 4%

Specif icbenefits 3%

NaturalIngredients &Nutrients 0%

Dandruff &Scalp Care 0%

Revitalizesand Pampers

7%

Brand Equity &Variety 9%

Salon Quality 3%

AttractivePackaging 3%

For Younger,Active Women

0%

Price Premium26%

Cheap / Valueperception

17%

Dove Dove Heat Defense pre-use

Dove Heat Defense post-use

Benefits (functional, sensorial, & emotional) Price ImageBrand Image

Optimize and diagnose your initiatives on the strategic drivers for the category

109

Types of strategic research

Habits and Attitudes

Need segmentation

Category drivers : Understand which attributes currently

drive preference.

Strategic pricing : Impact of price changes, right price

Product Quality benchmarking : Understanding how the

product fares vs competitors in blind format.

110

When can research NOT help?

111

Technically, Never All decisions involve research in some form or

the other – You may not need “formal” research. Even Intuition and Gut feel comes from a sum

total of all your previous experiences ! Except

Strategy: What you research is an “execution” of the strategy but never the strategy.

Trends : Can indicate but not predict size or duration

112

Thank you!

Documents

Steps in market research