Marketing Research India Ltd.

A Marketing Research Proposal for XYZ Ltd.
Submitted To: Prof. M.R. Suresh
Submitted On: 27-05-2013

Submitted By: Group C3 Debraj Choudhary (PGDM No.12134)

Deepak Nesarikar
Dhrubajyoti Sahu

(PGDM No.12135)
(PGDM No.12136)

Gaurav Jhunjhunuwala (PGDM No.12134) Kavitha P. Maithri N. (PGDM No.12143) (PGDM No.12147)

Proposal: MRI Company
1. INTRODUCTION
Our company’s name is Market Research India. We are a start-up established a year ago before and have been successfully carrying out market research for various projects. We are a specialist in B2C market research and have received many awards in the field of market research. We have a large base of interviewers and respondents of different segments according to socio-economic categorization. We have also helped Indian government in conducting the survey for updating their socio-economic categories in 2011.

2. EXECUTIVE SUMMARY
We are submitting this proposal to a lipstick manufacturing company which wants to study the market conditions in Mysore and launch their first brand in Mysore. As the lipstick company XYZ has not specified any requirements about the market research, therefore we are enclosing the details and our methodology in this document. The proposal includes the basic purpose and objective of the research. Also, it clearly outlines the section of society and geography under consideration. The proposal tries to focus on the decision alternatives to be considered and criteria for their corresponding selection. It gives a preview into the cost and timing estimates commensurate with the importance of the market research in the organisational context of new product launch. The proposal also mentions the size of the research team to undertake the field survey. The statistical techniques and tools to be used for analysis of the data collected all over Mysore has been specified and a report will be prepared and submitted at the end of the research process. 3. RESEARCH PURPOSE To find out the problems and opportunities of the lipstick market in Mysore, scope of problems and opportunities and their possible reasons related to lipsticks so that the XYZ lipstick company can successfully launch their lipstick brand. The existing Mysore market and brands present will be studied under points like their names, price, distribution strategy and retailing of different brands. Also secondary purpose of study is to find alternative brand names, advertising strategy, pricing of the lipstick, segmentation, target customer and positioning for the lipstick which is to be launched. Decision alternatives under the study The major decisions to be taken on the following marketing problems when it comes to launch a new lipstick brand in the market. 1. What should be the brand name? 2. What sound be the target market for the lipstick a. Age: college girls/ working women/ married women b. Income: upper class/ middle/ lower 3. How should we plan our distribution strategy so that we can cover all parts of Mysore?
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4. Which medium is most appealing for the women? a. Television Advertising b. Online Advertising c. Banners/ Local papers/Magazines etc. d. Movie-stars 5. Which shape of lipstick is most appealing for the women? 6. What should be our segmentation and positioning of the brand? Criteria for decision The criteria for decision making should be based on the current market conditions and loopholes in the market. The following criteria we feel should be considered to make a decision 1. 2. 3. 4. Perceived value of the new product and differentiation from competitors. Brand name recognition. Cost versus benefit analysis of marketing media. Size of the market.

Importance According to us the market research for launching a new lipstick brand is of immense importance. The reason is that the XYZ Company has invested a huge amount of fortune in this product and the failure or success of this individual product will determine the future of the company. Therefore, we recommend a thorough consumer survey in and around Mysore. Timing We will require exactly a month for doing survey because we are going do it in a thorough way. We will start the survey immediately after our company is order winner for this survey. The first week will be used to formulize the on-field sample. It will take next two weeks for actual survey by approaching the responders. Last week will be used to submit a detailed report of the market conditions and answers to all the questions of the XYZ Company’s need. Cost The whole Market research will cost approx. Rs. 2000/-. We can quote the exact figure after finalizing the order. Half of the amount should be given in advance for the market research program. However, this is dependent on the assumption that the data collection process will be completed within a fortnight. 4. RESEARCH OBJECTIVES The two major objectives of this study are: 1. To determine the factors influencing the buying behaviour of lipstick among the buyers in Mysore 2. To determine the Marketing mix that the company must concentrate on for effective exploitation of the Mysore market.

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Research questions Product related 1. To find alternative names that can be given to the lipstick to enhance its perceived brand value. 2. To find which brand is the market leader in Mysore and reasons for it. Consumer buying behaviour 1. To find which characteristics of lipstick as a product are most sought after. ( Exshape/fragrance/colour/size) (4P’s-Product) 2. To find on which occasion do people buy lipstick and their frequency of purchase. 3. To find location in Mysore where people generally purchase lipsticks. (4P’s-Place) 4. To estimate average spending of women on their brand of lipstick annually. (4P’sPrice) 5. To find which advertising medium is most appealing for females (4P’s-Promotion)
Hypothesized statements

1. There is relationship between age and place, price, promotion, product related factors 2. There is relationship between income and place, price, promotion, product related factors 3. There is significant difference between purchase patterns according to income and age groups 4. Choice of brand and money spent is related to occupation and income of the consumer 5. Brand, Price, Design are the important factors for purchase decision 6. Friends are most important influence in purchase decision 7. Variety and testing facility is important factor for location factors Research Boundaries/Scope The scope of this research is restricted to women and teenage girls in and around Mysore. Girls in secondary or senior secondary level will be approached for this purpose. College girls and housewives, working women across all sections of the society will be interviewed for in depth analysis. 3. RESEARCH DESIGN Sampling: We will survey approx. 100 women across the Mysore in the period of two weeks. The 100 women will of different age and income group. Category- Age 16-20 20-30 30-40 40-50 50 above Minimum Respondents 10 10 10 10 10 Category- Income Below 5000 5000-10000 10000-20000 20000-30000 30000 above Minimum Respondents 10 10 10 10 10
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We will ensure that the sample has equal distribution of women of different age groups and income groups. The sampling method used will be stratified sampling. If frequency of some group is significantly more or less at the end of the survey, weights will be used to minimize the sampling error. Methodology The research survey will be conducted in both ways- online and offline. The sampling will be based on stratified random sampling at the selected public places. Online questionnaire: We will prepare an online questionnaire and circulate it to respondents using e-mail. The use of internet will help us in recording the answers directly into Ms Excel. Also it will facilitate to increase visual appeal of our questionnaire. Offline questionnaire: Secondary data will be collected from various sources related to launch of new lipstick brand in tier-II cities of India. Annual reports of new product (lipstick) launch in past 10 years will be analysed. Government periodicals for census-vis-à-vis penetration rate of new product launch will be scrutinised for every minute detail. Customer feed-back reports and journals of reputed competitors will be compared on a time-series scale. We would be going personally to various places in and around Mysore. We would start the process by going to the various Malls (Mall Of Mysore and B M Habitat Mall) where we can find the high income group and even the middle income group of people buying the products. Next we would be going to a Fancy Store named ‘Rajaram’, because it is the main store for cosmetic stuffs like lipsticks etc. Here, we will get people coming from all the income classes. It will provide a holistic picture of the Mysore market. In-depth interviews: We will be conducting interviews of sales person in the outlets. Focus group discussion: A focus group is a form of qualitative research in which a group of people are asked about their perceptions, opinions, beliefs, and attitudes towards a product, service, concept, advertisement, idea, or packaging. We as a company will follow the following steps while conducting the focus group discussion. The members would be- 2 housewives, 2 working women and 2 college students.

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a) Consent Process Consent forms for focus group participants are completed in advance by all those seeking to participate. The information given to us is completely confidential, and we will not associate their names with anything they say in the focus group. b) Define the purpose of the focus groupTo understand what types of brands of lipstick are favourable to the women of Mysore. What motivates them to buy that particular brand. c) Focus group facilitation This step includes preparation, pre-session and session activities. Preparation tasks involve the facilitator (Deepak) committing the discussion guide to memory so seamless and effortless group discussion results. During pre-session, moderator will observe participants to note personality traits such as shyness or dominant talkers that may require special attention during the session. Additionally, moderator will engage in small talk prior to the official start of a session to help participants feel more comfortable with the process and each other. We will follow the following step by step process1. Welcome We would introduce ourselves and the beforehand we would have assigned roles among us and the note taker (Maithri) would take down all the notes and send the Sign-In Sheet with a few quick demographic questions (age, gender, profession) around to the group while one of us are introducing the focus group. We will explain the motive behind the discussion, why we are asking them to participate and what we will do with the information they give us. 2. Explanation of the process Next we will ask the group if anyone has participated in a focus group before. We will explain to them that focus groups are being used more and more often in conducting marketing research of lipstick as we want to introduce a new brand of our own keeping in mind the likes and dislikes of the various other brands. Here the focus is not trying to achieve consensus, we’re gathering information on what is preferred more and why. 3. Ground Rules • Everyone should participate. • Information provided in the focus group must be kept confidential • Stay with the group and please don’t have side conversations • Turn off cell phones if possible • Have fun 4. Turn on Tape Recorder 5. Ask the group if there are any questions before we get started, and address those questions. In this project, we are doing both questionnaires and focus group discussions. The reason for using both of these tools is that we can get more in-depth information from a smaller group of people in focus groups. The information we will gather is given in IRP.

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Information requirement table Source: Primary Information Respondent group Retailers/ sales person Info required Brands stocked Price Daily sales Customer class Display strategy Cash discounts effect Customer preferences Brands stocked Price Daily sales Customer class Promotion and display strategy Customer preferences Buying behaviour Age/income/ occupation Purchase occasion Choice of brand Choice of location Information search for purchase Buying influencing person Money spent of purchase Reason for use of brand Reason for purchase location Frequency of purchase Price factor Source: secondary information Internet Available brands in market Types of questions asked in market survey Current popular brands in India Classification of brands ( luxury, economy, middle ranged) New trends in lipstick market Understanding effect of recession of cosmetic industry Scaling

Nominal

Descriptive interview)

(in

depth

Malls manager

Nominal Descriptive interview) (in depth

Consumer group Individual consumer

Focus group discussion Nominal

Ordinal

Open ended question Interval

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Factors or Variables

     

Current scenario: current choice of brand, reason for it answered in macro product factors mentioned below (Macro)Product factors: brand, design, quality, beautiful packaging, imported, made from safe environment material, long lasting, Price (Micro) Product factors: Shape, Fragrance, colour, size, price, frequency of purchase, Location factors: variety, distance/convenience, class of crowd visiting, exclusiveness, atmosphere and décor, display, testing facility, Promotion factors: celebrity endorser, TV advertising, Radio, bill board, newspaper, magazine, catalogue and brochure, sales person, offers, free gifts or lucky draws. Price factors: cash discount, cheapest price,

Time for survey

The timings for conducting a survey will be preferably evening hours of weekdays. We will also use weekends.    1st week: to formulate the on field sample 2nd and 3rd week: Actual survey by approaching the respondents 4th week: submission of detail report of the current market condition and answers to the questions posed in the research objectives

Field Staff We have field staff of 6 people who all are learning marketing research and are sincere at it. There are two girls who will handle the direct interaction part of the survey. We as a team will ensure that the survey will satisfy all the queries of the XYZ Company. Project Report A written report will be submitted, and a PowerPoint presentation can be made by our firm at the end of this research.
Our team

Our Director name is Mr. Dhrubajyoti Sahu, PGDM With a gold medal and is renowned for his dedication in the field of market research. We have Mr. Gaurav Jhunjhunuwala, PGDM gold medallist as our CFO and is successfully carrying out his job. Because of his work, we are able to quote such a low cost for the research. Other co-founders are Deepak, and Debraj. Also we have talented ladies in our team who can convince any stranger and get answers form them. These ladies are Maithri and Kavitha. We as a team take only one client at a time and therefore dedicate our skills to the same project. We will be happy to help you. Looking forward to bag your contract.

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4. DUMMY TABLES
Income Below 5000 Age

5000-10000 x x x x x

10000-20000 x x x x x

20000-30000 x x x x x

30000 above x x x x x

16-20 20-30 30-40 40-50 50 above

x x x x x

Brand name x

Frequency marks x

Percentage of sample x

Sample table for Product factors
Frequency marks Leas t (1) Low (2) Med (3) High (4) Most (5)

Brand

2

4

7

9

0

Total Weighted frequenc sum y (b) (a) =2+4+7+ =1*2+2*4+ 9+0 3*7+4*9+ 5*0

Mean

= (b)/(a)

Design Quality

3 1

4 5

7 6

8 2

9 8

Table for ordinal questions Factor name Mean Std. Deviation Importance Place x x x Price x x x Promotion x x x Product x x x  The opinion score between 1 to 1.8 has been considered of least importance;  The opinion score between 1.81 to 2.60 has been considered of low importance  The opinion score between 2.61 to 3.4 has been considered of medium importance;  The opinion score between 3.41 to 4.20 has been considered of high importance;  The opinion score above 4.20 has been considered of most importance.

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5. QUESTIONNAIRE DRAFT FOR MARKET SURVEY

We are students of SDMIMD, Mysore and studying MBA. We are conducting a market research for lipstick market and buying behaviour of people of Mysore. We kindly request you to fill the following questionnaire honestly by taking out 2 mins out of your valuable time… Thank you very much

General information
1. Age  16-20 years  20-30 years  30-40 years  40-50 years  50 above 2. Do you use the Lipstick?  Yes 3. Occupation        Professional- front desk job, saleswomen, receptionist Profession –corporate/back office job Fashion industry/ Air hostess/ Film industry, profession where looks are important Business owner Service ( teacher, government,) Student Retired  No

4. Monthly income/ pocket money      Below 5000 5000-10000 10000-20000 20000-30000 30000 above

Purchase related questions
5. Which company’s Lipstick do you use currently? a) Lakme b) Oriflame e) Elle 18 f) Cover girl i) Avon j) L’Oreal m) Saint Laurent n) Chanel ( YSL) q) Others: (Mention name) c) g) k) o) Revlon Bobbi brown Lancôme Dior d) h) l) p) Maybelline Mac Body shop Guerlian

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6. The brand I currently use has following character istics? 1 Low price Consistent quality Low satisfaction For middle income Old fashioned Dull Normal 2 3 4 5 High price Inconsistent quality High satisfaction For rich people Stylish, modern Exciting Unique

7. Rank the factors important for you to choose a brand ?( give score so that total will be 100) factor score Brand Design Quality Beautiful packaging Imported Made from safe environment material Long lasting Price TOTAL 100

a) b) c) d) e) f)

g) h) 8. I use lipstick?     

Rarely Daily Occasionally (marriage, party etc.) Don’t use Just started using

9. From where do you purchase the lipstick?        Department stores Malls Fancy stores Supermarkets ( Big Bazaar, More ) Exclusive outlets Local market Online e- purchase

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10. The following factors have importance for choosing my buying location importance Least Variety Distance/convenie nce of shop Class of crowd visiting Exclusiveness Atmosphere and décor Display Testing facility Lowest price/ offers/cashdiscount Low Medium High most

11. Where do you get information about new product?

importance
TV advertising Radio advertising Bill board Newspaper advertising Magazine advertising Catalogue and Brochure Sales person online

Least

Low

Medium

High

most

12. Who are the persons that influence your buying decision the most?       Father/ Mother Friend Brother/sister Spouse Celebrity You ( self)

13. Who are the persons that go with you to buy lipstick?  Father/ Mother  Friend
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   

Brother/sister Alone Spouse If other, specify: ……………………….

14. How much money do you spend on purchasing Lipstick yearly?
 0-500  500-1000  1000-1500  1500-2000  2000<

15. Price is the important criteria for my buying decision.  Strongly agree  Agree  Neutral  Disagree  Strongly disagree

16. Advertisement is the most important motivator for me to buy a branded lipstick
 Strongly agree  Agree  Neutral  Disagree  Strongly disagree

17. I always go to nearby shop for buying lipstick.
 Strongly agree  Agree  Neutral  Disagree  Strongly disagree

18. I always look for offers and cash discount before buying lipstick
 Strongly agree  Agree  Neutral  Disagree  Strongly disagree

19. I believe lipstick makes women look more beautiful
 Strongly agree  Agree  Neutral  Disagree  Strongly disagree

20. I share my lipstick with my relatives or friends for use
 Strongly agree  Agree  Neutral  Disagree  Strongly disagree

21. Before buying, I always search for information from internet, friends, magazines etc.
 Strongly agree  Agree  Neutral  Disagree  Strongly disagree

22. I always buy lipstick as well as other cosmetics together (ex- eyeliner, foundation etc.)
 Strongly agree  Agree  Neutral  Disagree  Strongly disagree

23. I am using the same lipstick brand from last one year
 Strongly agree  Agree  Neutral  Disagree  Strongly disagree

24. I feel lipstick has side effects on my lips
 Strongly agree  Agree  Neutral  Disagree  Strongly disagree

25. I ask my male friends, boyfriend, spouse before buying lipstick for opinion
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 Strongly agree

 Agree

 Neutral

 Disagree

 Strongly disagree

Descriptive questions

26. How many lipsticks do you purchase in a year?

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

27. My ideal lipstick will be …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… ……………………………………………………………………………………

6. CHECKLIST FOR FOCUS GROUP DISCUSSION
This check list is for the reference of the moderators so that moderator can run the GD without running through the points. We will allow the participants to interact and introduce themselves initially for 2-3 mins and let them know what we want from them. We will also give instructions for GD while having a coffee with them. The initial questions will allow every participant to participate in the GD. Also moderator will ensure that everyone speaks on each item mentioned in the checklist and then move forward. This is the sequential checklist of discussion for our FGD 1. 2. 3. 4. 5. 6. 7. 8. 9. Name Age Lipstick brand at home Occupation Monthly Income Total spending on cosmetics Spending on lipstick Reasons for buying a specific lipstick brand ( product factors) Discussion about Shopping places in Mysore ( which is good, where which brands are available, price range, class of people coming there) 10. Where do they go for buying and why? ( place factors) 11. Which advertising medium is best for lipstick brands to advertise? 12. Effect of cash discounts, offers on buying and brand switching, brand loyalty 13. Frequency of purchase and time period for usage. ( average number of lipstick a girl has) 14. Online shopping experience and convenience 15. How their ideal lipstick will be?

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7. CHECKLIST FOR IN-DEPTH INTERVIEW
1. In which month consumers prefer the buying of the lipstick most? 2. Does the festive season have any influence on the sales? If so, to what extent? Whenever the company offers the discount whether the sales will increase? 3. Whether the purchase is done by only women? 4. Based on the observation when a person buys, whom does she or he approach? 5. If a girl buys, whom does she approach? If a guy buys, whom does he approach? 6. Which lipstick you have to keep in stock the most? What influences its sales? 7. What kind of the customers visits their shop? 8. Whether sales personnel will have an impact on the persons buying? 9. Based on the display, we can ask why a particular brand is kept where it is kept?(for that we should know where it is kept)

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