GAINING CONSUMER INSIGHTS: MARKETING RESEARCH IN INDIA
Marketing Research: The quest for the real consumer
Hindustan Unilevers Ltd.: Studying brushing habits in rural India. Technique used: Ethnographic research
Marico: What is the ¶ideal relationship· with spouse amongst middle class Indian housewives. Technique used: Collages. Collages.
Pepsi: Wanted to develop an advertising concept for ¶daring· for the age group 19-22. 19Technique: Gave video cameras to youngsters and asked them to shoot pictures of what they thought was daring.
(photogiving it a better idea of how they aged over the years
.Hindustan Unilevers Ltd.
The Issue: Wanted to understand ageing in women Technique: Asked women to put together the story of their lives in pictures (photo-diaries).
HSBC: Credit Cards-from temptress to Cardsfriend. Technique used: Collages. Technique used: Projective techniques Ranbaxy: What is ¶health· and ¶being healthy·. dyads and triads
." says B. Market Research Society of India (MRSI).V.´Traditional consumer insight models are insufficient to gauge consumer attitudes and choices at a micro level. President. Pradeep.
Marketing Research in India
Growth of marketing research (MR) in India Expenditures on MR by Indian firms Major application areas of MR Methods and techniques in MR Organization for MR Innovations in MR Impact of technology on MR practices Future trends in MR in India Managerial perceptions of MR Hurdles in conduct of MR in India
TODAY* REASONS FOR GROWTH . IN NINETIES TO ABOUT RS.LIBERALIZATION AND INCREASED COMPETITION . 700 CR.GROWTH OF MARKETING RESEARCH IN INDIA
INDIAN MR INDUSTRY: GROWN FROM RS.MORE PROFESSIONAL MANAGEMENT
.MORE DISCERNING CONSUMERS AND CHANGING PREFERENCES AND BEHAVIOUR PATTERNS . 30 CR.
HLL .CHANGING PROFILE OF MR USERS
Multinationals (Particularly FMCG) Have Been Traditional Users Of MR In India: :
.Colgate Palmolive .ITC -Godfrey Philips .Nestle .Cadburys .Glaxo Smith Kline Beecham
.Coca-Cola .Pepsi -P&G .
Godrej Appliances .Marico .Asian Paints .Ranbaxy .Dabur .Changing Profile Of MR Users
Companies Of Indian Origin also Adopting MR
.Godrej Consumer Care -Mahindra and Mahindra .
Changing Profile Of MR Users
Service Firms are Increasingly Adopting MR -Bharati Cellular
.Reliance Indicom .ICICI Prudential .Hutch .MTNL -Taj Hotels .Shoppers Stop .Tata Infocom
Business to Business Users -Indian Flavors and Fragrances
-Tetrapack -Microsoft -ACC -GAIL
Mi 17 .TNS
.Market Pulse .Pathfinders .Indica Research .March Market Research .C.IMRB International .Integrated Marketing Research
* Illustrative List
.Qualysis .Hansa Research .MARKETING RESEARCH AGENCIES IN INDIA*
Large MR Agencies
.A. Nielsen-ORG-Marg Nielsen-ORG.Shaman Marketing Research .Synovate .
1001Group C Rs.500 Cr.Mean Annual Expenditures on Marketing Research by Organization Size
n = 131
Organization Size (Sales Turnover) Group A > Rs. Lakhs) 125.2000 Cr.Rs.79
.69 43.1000 Cr.500Rs.21 120. Mean Expenditure
Mean Expenditure (in Rs. Group D < Rs.75 79.Rs.500.27 81. 2000 Cr Group B Rs 1001.
.Correlation between Organization Sales Turnover and Expenditure on Marketing Research
Annual Sales Turnover Annual Marketing Research Expenditure
n=131 * *Significant at 0.
Lakhs) 111.83 57.59 29.79
.Mean Annual Expenditure on Marketing Research
Industry type Consumer NonNonDurables Consumer Durables Services Industrial Products Total Mean Expenditure
Mean Annual Expenditure ( Rs.91 98.85 81.
Total Mean Annual Marketing Research Expenditure as % of Sales 0.21 0.1001Rs.500Rs.2000 Cr.12 0.06 0.1000 Cr.Expenditure on Marketing Research as a Percentage of Sales by Organization Size
Organization Size Group A Rs. Group C Rs. Group D < Rs.17 0.15
. 2000 Cr.1001-Rs.500-Rs.500 Cr. Group B Rs.
Correlation between Organization Sales and Percentage of Sales Spent on Marketing Research
Marketing Research Expenditure as a Percentage of Sales Annual Sales Turnover
n=131 * *Significant at 0.272**
04 0.11 0.28 0.Expenditure on Marketing Research as Percentage of Sales by Industry Type
Industry Type Annual Expenditure on Marketing Research as % of Sales
Consumer Non Durables Services Consumer Durables Industrial Products Total Sample
APPLICATION AREAS FOR MARKETING RESEARCH
Top Five Customized Marketing Research Application Areas
Top Five Customized Marketing Research Application Areas Across Industries
Ind Rank 1 Consumer Non Durables New Product Research Brand Studies Advertising Research Consumer Behavior Research Product/Pack. Improvement Research 69 % Consumer Durables New Product Research Advertising Research Consumer Behavior Research Customer Satisfaction Studies Brand Studies 67 % Industrial Products Customer Satisfaction Studies New Product Research Advertising Research Consumer Behavior Research Product Improvement Research 69 % Services Customer Satisfaction Studies New Product Research Advertising Research Consumer Behavior Research Product Improvement Research 73 %
5 % of total MR Exp.
95 Rank 1 2 3 4 5 6 -
.39 10.84 72.12 11.81 12.77 14.02 6.% EXPENDITURE ON RESEARCH APPLICATION AREAS
Application New Product research Advertising research Consumer behavior research Customer satisfaction studies Brand studies Product/Packaging improvement research Total Mean 17.
48 30.Share of Qualitative and Quantitative Research as % of Total Marketing Research Expenditure
% Expenditure on Qualitative Research Type Industry Consumer NonNon-durables Consumer Durables Industrial Products Services Total Mean 28.00 73.40 69.00 71.21
.79 % Expenditure on Quantitative Research Mean 71.52 70.00 27.00 28.60 30.
DATA COLLECTION TECHNIQUES IN MARKETING RESEARCH
19 4.20 4.37
Rank 1 2 3 4 5 6 7 8
.05 3.Data Collection MethodsMethodsPrimary Research
Application Area Focus groups-in-person groups-inSurveysSurveys-at home/office Depth interviews Projective techniques Surveys ²mall intercepts Field observation Surveys -telephone Mystery shopping
On Scale from 0=Not Used to 5=Used Very Frequently
Mean 4.26 1.67 1.28 2.58 2.
06 0.89 0.01
9 10 11 12 13 14 15 16 17 18 19 20 21
.48 0.paper mailSurveys -e-mail Laboratory simulation Mechanical observation devices (Cameras etc.56 0. Surveys ²mail.52 0.66 0.) Focus groups -online Surveys -Web Focus groups -telephone Surveys -fax Surveys ²disk by mail Virtual setting Focus groups -video-networked videoScannerScanner-based research
0.71 0.64 0.05 0.14 0.74 0.01 0.Ethnographic research.
. Election Speeches for the brands/products. Brand World and Solar System.Popularly used Projective Techniques
Personification. Bubble Drawings. Conflict Groups (two rival groups speaking for and against the brand/product). Picture Sorts. Collages. Celebrity Fits. Obituaries for the brand/ product. Onion Technique (getting consumers to describe the layers of the product or brand). Mood Maps.
DATA ANALYSIS TECHNIQUES IN USE
66 4.46 3.10 2.77 2.59
1 2 3 4 5 6 7 8 9 10 11 12 13 -
On Scale from 0=Not used to 5=Used Very Frequently
.29 1.10 0.59 3.69 1.Data Analysis Technique
Measures of Central Tendency Measures Of Dispersion Statistical Tests of Significance Correlation Analysis Confidence Intervals Regression Analysis Analysis Of Variance/Covariance Cluster Analysis Factor Analysis Conjoint Analysis Time Series Analysis.45 4. Discriminant Analysis.38 3.38 1.35 3. Multi-Dimensional Scaling Others
Mean Frequency of Use
dyads and triads) Segmentation and Positioning models (including Psychographic and Life style Segmentation) Tracking Studies Demand forecasting models Pricing Studies( e.g. price elasticity pricestudies) Rank 1 2 2 4 5 6 7 7 9
. price-pack studies.INNOVATIONS IN MARKETING RESEARCH
Application/Technique Innovations in Customer Satisfaction Research Ethnographic Research Innovations in Advertising Research (Quantitative Models and Qualitative Techniques) Innovations in Concept testing( including testing software & Qualitative techniques) Focus Groups Innovations (e.g.
Application/Technique Brand Equity studies Conjoint analysis InIn-Depth Consumer motivation studies Online Research Trial Purchase Prediction models Outlet Location/trade area research PrePre-test marketing models Lead user analysis Customer Creativity Enhancement techniques Photo Diaries/diary placements Simulated test marketing Merchandising research Virtual Testing Quality Development Indicators InIn-market Trials
Rank 10 11 11 13 14 15 16 16 16 19 19 19 19 23 23
% Research Outsourced To External Research Agencies 96.75 91.47
Industry Type Consumer NonNon-durables Consumer Durables Industrial Products Services Total
% Research Conducted InIn-house 3.29 93.25 8.62 95.38 5.SHARE OF MARKETING RESEARCH CONDUCTED IN-HOUSE VS.38 4.71 6.
0 35.3 50.0 39.7 65.6
Marketing Research being handled by line executives Number 10 12 17 13 52 % of Category 23.Number of Organizations with Full-time FullPersonnel Assigned to Marketing Research
Organizations with 1 or more persons assigned full-time to fullMarketing Research Number Consumer Non Durables Consumer Durables Services Industrial Products Total 33 23 17 7 80 % of Category 76.7 50.4
.3 34.0 65.0 60.
Or More) Computer Aided Tools/Software Questionnaire Design Software Computer Assisted Telephone Interviewing (CATI) FullyFully-Automated Telephone Interviewing Computer Assisted Personal Interviewing (CAPI) % of Category 20.0
20.) % of Category 0.3
.0 % of Total 8.Select Computer-based Tools/Techniques Reported Being Owned by Marketing Research Agencies
Group A Agencies (Rs.0
45. 10 Cr. 10 Cr.7
13.0 Group B Agencies (Less than Rs.7
6. Or More) Computer Aided Tools/Software Computer Assisted Self Interviewing (CASI) Fieldwork Management Software Quantitative Data Analysis Software Geographical Information Systems Software % of Category
Group B Agencies (Less than Rs.Group A Agencies (Rs.0
8.0 75.0 100. 10 Cr.) % of Category % of Total
40. 10 Cr.9
Mining and Modeling Tracking Studies Growth of Syndicated Research Developments in Media Research Greater Professionalisation of Marketing Research Rural Research Consolidation of Research Companies /Entry of Foreign Players Rank 1 2 3 4 5 6 7 8 9 10 11 12 13
.Future Trends in Marketing Research in India: Perceptions of Marketing Research Professionals
Trend Online Research Increase in use of Statistical Methods. Predictive Models and Tools Computerized Data Capture Methods Increasing Use of Qualitative Research Customer Satisfaction Research Ethnographic Research Data Warehousing.
% Expenditure on Custom Research Industry Type Consumer NonNonDurables Consumer Durables Industrial Products Services Total Mean 79.56 14.20 88.Share of Custom and Syndicated Research As Percentage of Total Marketing Research Expenditure
% Expenditure on Syndicated Research Mean 20.44 85.80 11.63 11.04 91.37 88.96 8.80
com) conducts retail store audits covering 60. (ii)Healthcare Sector Audits Pharmaceutical Audits ACNielsen-ORGACNielsen-ORG-MARG conducts a Pharmaceutical Audit which tracks sales of pharmaceutical formulations of 291 companies (constituting 90 percent of the pharmaceutical formulation market) through a panel of 2236 chemists in 367 cities and 986 villages.Major Syndicated Services Available in India
Continuous Syndicated Services
(i) Retail Store Audits ACNielsen-ORGACNielsen-ORG-MARG (www.000 outlets across 367 cities and 983 villages in India.acnielsen. Prescription Audits ACNielsen-ORGACNielsen-ORG-MARG conducts a prescription audit which provides information on the prescription habits of doctors through a panel of 2800 doctors in private practice.
Tracks 70.000 households based on their SEC classifications. eating and entertainment habits (iv) Readership.000) -Readership Studies National Readership Study and Indian Readership Study
.000 sample individuals representing all the Class I towns (with population over 100.(iii)Household Purchase Panels IMRB International (www. durables ownership.imrbint. It runs PeopleMeter TV Panels with over 20. age of the housewife. The variables used are geography.com) operates its household panels in ten metropolitan cities in the country and monitors over 30 consumer product categories. Audience Measurement and Media Services -TV Audience Measurement The TV Viewership cell of TAM Media Research measures TV viewership for over 250 TV Stations operating in India.
trade.g. brands.g.Section II market profiles of 81 product categories e. demographics. TARGET GROUP INDEX (IMRB): It combines products. media. -AC Nielsen-ORG-MARG-Market Monitor-Section I Nielsen-ORG-MARGMonitorprofiles Indian economy.B.. media etc. Non-Continuous Syndicated Services Non Comprehensive Market Studies Sector Specific Studies
e. demographics and lifestyles.
.25 4. 5= Very high impact
Industry Methods Data Collection Sampling Data Analysis
Consumer Non Durables Mean
Consumer Durables Mean
Industrial Products Mean
2.70 3.08 4.88 4.21 4.49 3.60
2.66 3.09 4.77
2.63 2.Impact of Technological Developments on Marketing Research:Perceptions of Marketing Research Managers
Scale: 1=Very low impact.70 3.70
72 4.37 3.47 4.45
.Role of Marketing Research in Managerial Decision-MakingDecision-Making-Perceptions of Marketing Research Managers
Scale: 1=Provider of data analysis . 7=Provider of strategic business advice
Industry Type Consumer NonNon-Durables Consumer Durables Industrial Products Services Total Sample
Mean 4.95 4.
advertising research.Major Conclusions
Usage of MR in India is still fairly low-mean lowexpenditures 0. consumer behavior studies and product/packaging improvement research and customer satisfaction research.15 % of sales. brand studies.
. Top 6 application areas that account for over 70 % of customized research expenditures: New product research.
Share of Qualitative vs. Innovations in qualitative research. Quantitative research expenditures: 30:70
. Infocus groups.Major Conclusions (Contd.)
Dependence mainly on traditional methods of primary data collection: In-person surveys. depth interviews and mall intercepts.
readership and media audiences.)
Consumer durables report the largest number of innovations in MR applications and techniques. pharmaceutical audit. household panels. Major Syndicated research studies available: retail audits.
.Major Conclusions (Contd.
InIn-house vs. out-sourced research outexpenditures: 5:95 Organizations with one or more MR personnel: 60 %.Major Conclusions (Contd. Organizations with MR being handled by line managers: 40 %
non-Management·s insistence on speedy results at the cost of research quality.cooperation due to lack of time. -Management·s unwillingness to make expenditures required for quality research
Major challenges/hurdles for MR in India:
-Lack of trained and reliable field data collection
personnel.Major Conclusions (Contd. -Lack of qualified and trained research personnel.
Mktg. customer satisfaction and improvement in sales performance as being highly positive. decision-
. Major managerial perceptions that MR professionals must address: Speed of marketing research projects Creativity of approach Marketing researchers recommendations need to be more decision-oriented decisionMarketing researchers understanding of problems of marketing decision-makers. decision-makers rate MR·s decisioncontribution to new product introduction.Major Conclusions (Contd.)
MANAGERIAL PERCEPTIONS OF MR Overall marketing research perceived as serving a useful purpose.
Investment in developing in-house inresearch capabilities. Building partnerships with external research suppliers.
. Need for focused efforts to attract and retain people in MR.Major Recommendations
Leveraging technology for marketing research.
Marketing research needs more marketing! marketing!
Expansion in the scope of the MR function within organizations. Need for medium and small agencies to rethink strategy. Certification in MR.Major Recommendations (contd.
An expanded skills set required for marketing researchers. Need to address managerial perceptions about aspects of MR.