Market Research Brief

Background about Enhav

Enbav is a well-known multinational brewer whose headquarter located in Germany,

occupying more than 30% market share with numerous famous brands, ranging from global
brands, multi-country brands to regional brands which keep the No.1 or No.2 market
position in many countries. As one of the largest brewers in the world, Enhav has a long
history, more than three hundred years since 1658. Nowadays, the business activities of
Enbav have been expanded into over 40 countries with more than fifty thousand employees,
in terms of mergers, acquisitions, joint ventures and investment in building assembly lines
and plants. Especially, among the various acquisitions around the world, the compelling
acquisition with Besh, the once third largest brewer in the world three years ago, making it
become the largest brewer and owning six of the first ten global leading brands in beer
market.

Recent development about Enhav

Recently, Enbav is launching a home beer cooler and dispenser which is considered to be a
new trend to satisfy the needs of consumers to enjoy a cool draft beer at home, which
delivers its top three selling brands, Bood, Tigre and Tella. In addition, this machine takes up
no more room than the average coffee machine, and provides the simple control on the
temperature of the beer for at least 30 days after beer opening. In order to test the reflection
of market and prepare for a larger scale of promotion, and then Enbav first commenced in
home market, Germany, before starting on it across Europe. However, due to the weak sales
in the first nine months, disappointed retailers threatened to delist it if the situation does not
change in the next two months. Therefore this critical condition forced Enbav to review its
business strategy and adjust according to current and possible future market environment.

Business Decision to be addressed by Market Research

To avoid the weak sale of the home beer cooler and dispenser, Enbav would like to examine
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and investigate the reasons why the product is not proving as popular that had been hoped.

Specific Market Research Objectives

 Explore drivers for purchasing this machine (e.g. Self-Indulgence & Gift buying).

 Describe aspects of the product that most/least attractive to consumers if when they buy
this machine.

 Assess to what extent the price of the machine is a deterrent, if at all.

 Ensure whether consumers make comparisons between the price of the draft beer the
machine delivers with the prices of substitute products (e.g. the price paid in a
bar/restaurant; bottles or cans bought in retail outlets; cans sold with internal
pressurizing devices that simulate draft beer in retail outlets).

 Investigate if the limited supply of only the brands of Enbav will discourage sales of the
machines, even though these brands are market leaders.

Possible Methodology

A qualitative approach is recommended to get insights of current and potential customers.

Please list the strengths and weaknesses of your choices in selecting an appropriate approach
to sample designs, qualitative data collection and data analysis.

Project Timings

The entire proposal must be submitted before 6th June 2011, and the deadline for the
presentation of final results should be finished before 6 th October 2011.

Budget Constraints

The total budget must not exceed €60,000 to meet the requirements during the whole
research.
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 Force Research Limited Liability Company

Market research proposal

Background

Since established in Germany in 1658, Enbav now has developed into a multinational
brewer during the 300 years of history, with business across more than 40 countries in the
world, and among these countries Enbav holds No.1 or No.2 market position over 20
countries. In recent years, the rapid expansion around the world leaded Enbav to become the
largest brewer immediately in terms of mergers, acquisitions, joint ventures and so on,
taking up almost 30% of market share, hiring over fifty employees and controlling many
famous world leading brands in beer market. For example, Besh, once the third largest
brewer in the world, locating in USA, was merged by Enbav three years ago with
astonishing 60 billion euros, including its subordinate brands, plants and joint ventures
distributed around the world. Therefore, Enbav owns six of the first ten global leading
brands in beer market, comprising its three most popular brands, Bood, Tigre and Tella.

In recent years, some brewers and manufactures find the opportunities from beer consumers
who seek for similar experiences of drinking a cool draft beer at a bar or restaurant when
drinks at home. As a result, the narrow scope of consumers makes it to be a niche market
where consists of fans for cool draft beer with considerable income. Additionally, this
market where the competition is not so much fierce and entry barriers are not high for
technologies and capital. But compared with other regular products with similar functions
and features, the price of Enbav’s item is almost two times, which makes it less
advantageous and competitive. Therefore, the product developed by Enbav not only has
several general characteristics, such as the control of the low temperature and taking limited
space, but also has special features, silence and insulation. It was highly hoped and launched
at German market first before launching it across Europe to test the market reflection and get
consumers’ reviews. However, the sale of first nine months was disappointed to both Enbav
and retailers, and the latters intimidated to delist it if there is no visible improvement of the

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sale in the next two months. Hence the task of Enhav at present is to understand the insights
of consumers and the market, and identify the factors that influence their decision making in
the purchase process.

Specific Research Objectives

Enbav wish to understand the insights of consumers and the market for posterior
improvement on the business strategies, in order to recover the weak sale and launch the
product across Europe more successfully.

 Explore drivers for purchasing this machine

 Self-Indulgence: who

 Gift buying: for who

 For those who have purchased: why choose this machine rather than others?

 Compare different aspects of the product, which is most or least attractive to consumers,
when if consumers buy this machine

 Appearance: includes color, size and layout

 Cost: price and future fees

 Functions: cool beer and remain fresh

 Performances: e.g. silence

 Assess to what extent if at all the price of the machines is a deterrent to consumers
decision making

 To those who have purchased the product

 To those who know the product but did not purchase

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  To those who have interests but have not purchased

 Comparisons between the price of the draft beer the machine delivers with the prices
from other sources

 The price paid in a bar or restaurant

 The prices of bottles or cans bought in retail outlets

 The prices of cans sold with internal pressurizing devices that simulate draft beer in
retail outlets

 To what extent, limitation of only the brands from Enbav appropriate to it discourage
sales of the machines

 The choices of beer brands provided which could be appropriate to this machine by
the whole market

 Under the same condition, the prices of brands only supplied by Enbav compared
with other brands

Research Design

Because the scope of this niche market is narrow, it is essential to investigate and understand
those potential consumers and those who know the products but without interests, which
also could be used to compare with data collected from customers who have purchased it
and support the explanations of behaviours and attitudes in decision making process.
Therefore, customers are divided into three distinctive groups. Then each of them
corresponds to separate sampling methods, but similar in the type and process of data
collection.

As an efficient tool to identify and explore insights of the market and consumers for
specified research objectives, especially to deeper and more emotional response, a

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qualitative research as primary sources is the superlative option for these three types of
samples. Furthermore, the open-ended and more flexible qualitative approach rather than
quantitative research allow researchers to modify and adapt to the situation changed in the
research. Due to limited understanding of the market and previously unknown about
customers, an exploratory research is necessary to identify those concealed problems and
clarify their natures and scope, preparing for future propositions and hypotheses. But it lacks
the ability to deliver a definitive or conclusive answer to specific research questions, which
brings about the necessity of descriptive research. Compared with exploratory research, a
descriptive research could provide a clearer description about what needed, such as the
answers to who, where, when, how and so on.

Though qualitative research could concern with rich and detailed insights, the measurement
through quantitative approach is also indispensable in evaluating those factors in the
comparisons. And this more structured and standardised approach could let the research
become more reliable with highly valid data, but requiring for samplings with high numbers
of respondents. Therefore this quantitative approach will be adopted in the initial period
according to three different groups by mails (for customers have purchased) and face-to-face
interviews in the retail stores (for customers have not purchased). Moreover, a quantitative
phase could be an important tool in analysis and widening of possible information to support
the research.

After the initial quantitative data collected from different groups of customers, though
in-depth interviews are recommended with several advantages, like less influenced by views
of other respondents, appropriate for sensitive data and individual longitudinal data, group
discussion takes one more important benefit here is the limited timing as well as more value
for money. And the moderator could provide aids in balancing and keeping the interview
smoother through selecting more information from deeper insights.

Sampling Plan

As suggested before, there are three specific groups of customers that will be identified after

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the simple and basic survey research through mails to the customers who have purchased
products, and face-to-face interviews in the retail stores that last no more ten minutes for
customers who did not purchase whether with interests. This kind of classification and
sampling could help more easily to recognize the similarities between comparable customers
as well as opposite views among them. Furthermore, the three distinctive groups also could
be compared to look for differences and likenesses which could be applied in business
strategies.

Therefore, these three groups could be defined as follows; firstly, the current customers
group could be selected from the two thousand customers who did purchased in the last nine
months; secondly, the interesting group will represent who show the interests and desires to
buy it after the introduction of this product; thirdly, non-interesting group stands for those
people that do not want to buy it after know about this product. To guarantee the just and fair,
each group will contain ten respondents which will be paid at €100 accounted into the
budget, and the place will be located in Central Berlin where the client could observe.

In order to ensure the validity and reliability, there some notices needing attentions during
the screening sampling. We should avoid the influence between respondents in one group as
far as we could, especially the relationships like relatives and friends, and also for those who
have done similar research recently or have associated work experiences and information.

The details about sampling plan for each sample are list in the following chart. There are
four groups for each sample, where consist of two men’s and two women’s, because the
respondents would be recommended to divide into two sections, according to ages of below
forty and above forty. And every group will be equipped with a moderator.

Respondent Number of Number of Remarks

Classification Groups Respondents per
group

Current Customers 4 (each for 3 hours) 10 2*men & 2*women

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Interesting Group 4 (each for 3 hours) 10 2*men & 2*women

Non-interesting 4 (each for 3 hours) 10 2*men & 2*women

Group

Data Collection

 Interview flow for the discussion guide

It is essential to prepare a discussion guide in the long three hours discussion covering all
aspects of objectives, and also allocates enough options to the moderator for exploring any
relevant opinions mentioned. Although there are three versions for three distinct groups of
customers, most aspects are analogous. Therefore, the interview flow is suggested as follow.

 Introduction

 Introduce purpose of research

 The usage of data

 Opportunity for respondents to introduce themselves

 Establishing respondents’ experiences and ideal products

 Features and characteristics of ideal products

 How can customers confirm all product attributes before purchase

 The drivers for purchasing

 Purpose of purchasing: self-indulgence & gift buying (e.g. birthday, Christmas,

marriage, etc.)

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  Drivers for the choice: e.g. appearance, cost, functions, performance, etc.

 Recreate buying experiences

 Where? When? For who? (E.g. Why choose home beer cooler and dispenser as a
gift?)

 Among the drivers of options list above, which is most or least attractive to
customers?

 The role of price in the decision making: to what extent the price is a deterrent?

 Comparisons with other sources of substitute products

 Classify the distribution channels of substitute sources: e.g. draft beer sold in
bar/restaurant

 Contrast the cost of beer delivers through this machine with other sources

 The potential unsatisfied requirements for improvement of more perfect experiences

 Does the fact that only the brands of a single brewer discourage sales of the
machine?

 Are there any price advantages compare it with other brands which are appropriate
for this machine?

 Do customers prefer to drink more local brands instead of global brands?

 What are the other factors influence the choices made by customers when they
choosing to bar/restaurant or buy bottles or cans rather than buying this machines?
(e.g. convenience & atmosphere in bar/restaurant)

 Projective and enabling techniques

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It is useful to help respondents to express ideas, feelings, emotions and attitudes in the task
complementation when facing difficulties of psychological, language and social. There
several types of techniques, including techniques of association, completion, construction
and expressive techniques, which should be suitable for specific research objectives and
particular cultures at the right time.

Therefore, there are some examples of techniques could be employed here, such as picture
association and laddering. Pictures could deliver the connections to the emotional quality
and mood which languages cannot depict as distinctly. Laddering would be more valuable to
get respondent’s insights of demands and to understand of their thoughts about decision
making.

Data Analysis

This analysis would focus on the observing the insights of customers and what factors of the
product and market influence their behaviours and attitudes in decision making.

During the time of fieldwork, all materials including interviews will be recorded for the next
analysis and interpretation phase. The team will review all the materials, like listening to the
audio tapes, scanning notes about the transcripts. Actually, the team could attend into
fieldwork period and put forward hypotheses based on its initial understanding and
interpretation.

And then a framework that targets at gathering information about behaviours and attitudes,
as well as formulating key themes and hypotheses items, will combines comments of
respondents. Therefore, accompanying with tapes and other materials like notes of
transcripts, this framework will be a strong persuasive tool as primary analysis for
interpretation. In addition, projective techniques used in the data collection aims to
overcome the barriers for underlying behaviours and attitudes of respondents, which also
should not be ignored.

And the final part of analysis is the presentation with the support of PowerPoint slides and a
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copy of complete report with details.

Project Timings

Weeks Week Commencing Actions

1 Mon 27th June Project commence

Set up meeting

2 Mon 4th July Prepare for discussion guide and

interview materials

Screener design

3 Mon 11th July Recruitment start off

Screener design finish off

4 Mon 18th July Approval of interviews;

Fieldwork commences

5 Mon 25th July Fieldwork

6 Mon 1st August Fieldwork

7 Mon 8th August Fieldwork completed

The beginning of analysis and

interpretation

8-9 Mon 15th August – Mon 22nd Analysis of interviews and

August interpretation

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10 Mon 29th August Preparation of presentation

Detailed report commences

11 Mon 5th September Final presentation for Enbav

12 Mon 12th September Detailed report finish

Budgets

￡ Sterling

Fieldwork for the simple survey search for 700

screener design

(One week @￡100 per day)

Recruitment and Incentives for respondents 12,000

(120 respondents @￡100 each)

Moderator 4,800

(12 group discussions @￡400 each)

Analysis 4,000

(10 days @￡400 each)

Central Costs 10,000

Travel costs 4,000

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Total budget costs 35,500

Central costs include:

 Briefing meeting with clients

 Overall design of study

 Detailed design of interview materials

Proposed Team

Project Manager: Jethro Gibbs

Jethro has been in Force Research for more than ten years since he completed the
undergraduate degree in U.S. with extensive knowledge in the marketing, advertising and
public relations industry. His deep understanding and experience in working with a wide
range of quantitative and qualitative research methods provides him a particular
understanding in the household appliances market and emerging consumer markets. His role
is to guarantee the optimal design would be driven by marketing context, methodology and
strategic business expertise, especially in planning and conducting the interview guides, and
designing the analysis process of content.

Senior Research Executive: Caitlin Todd

Caitlin has recently joint the Force Research when she graduated with a market background
degree in a German university. Under the supervisions and direction from Jethro, She will be
responsible for the daily maintenance of this project, specifically in completing the content
analysis to a written detailed report and sharing the analysis and presentation.

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