Indian Institute of Management Indore Post Graduate Programme in Management

MARKET RESEARCH – VOICE ENABLED + WI-FI SPEAKERS
INDIAN INSTITUTE OF MANAGEMENT

INDORE
POST GRADUATE PROGRAMME IN MANAGEMENT
Marketing Research
Project
[SECTION-A2H]
Group Members:
S Rovei (2018PGP309)
Shreya (2018PGP355)
Name 3 (2015IPM002)
Name 4 (2018PGP003)
Name 5 (2018PGP004)
Name 6(2018PGP005)
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TABLE OF CONTENTS
Executive summary
1. Introduction (Purpose, overview)
2. Management Problem (Background)
3. Research Problem
4. Research objectives/questions
5. Exploratory and literature research (Should explain why the stated research objectives are
relevant for the exploration)
6. Research Method
a. Approach
b. Research Design
c. Data collection tools
d. Sample plan
e. Timeline
7. Data Analysis
a. Descriptive
b. Research Questions
8. Findings
9. Recommendations
10. Conclusion
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INTRODUCTION :
Currently, the speakers present in the market are Bluetooth enabled
and play music when synced with other devices. Volume and track can
be controlled by using the buttons on the speakers .
Also, changing tracks poses an issue when connected to a desktop
Voice command devices (VCD) has created a boom in the market.
There are home automation devices present, like Google Home, Alexa
etc. Which can be used to listen to music via voice control and over
Wi-Fi.
High infrastructure requirements for home automation systems as
well as they are costly. Generally, owner of home automation devices
end up using these device only to play music or connect it to their
entertainment system. This gap has been identified between the
existing speakers and home automation devices.
The research seeks to determine whether there is a market for a voice
controlled, Wi-Fi enabled speaker, which would only play music, but
come at a price range near to the existing speakers
MANAGEMENT PROBLEM
Whether to invest in the development of voice enabled speaker
which would only play music over other product who provided all
round smart home automation ?
How to minimize the cost of the product so that the profit margins
can be improved ?
Would we able to capture sufficient market share ?
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RESEARCH PROBLEM
The research would try to find out what different attributes and
specifications does a person look for while purchasing a speaker.
Also, it should be able to find out in which price segment should we
launch this product while satisfying basic customer requirements for
such voice controlled speaker.
By introducing this product, will ABC be able to create enough profits
and market share to justify its cost against oth er possible product
development?
RESEARCH OBJECTIVES / QUESTIONS

Currently ABC company is focussing on deep bass and punch bass on
their wireless speakers, what other features they can add to attract
new customers?
If it launches a new version with additional features, how much extra
cost customers will be willing to pay?
At what price should we place our product considering that, unlike
other smart devices which has home automation system, our product
is only focussing on music ?
If they launch a new lower priced version, what are the featu res the
customers are willing to sacrifice on ?
What will be the impact on the brand image in launching this
product ?
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RESEARCH METHOD
Approach
Identifying the constructs and the variables of interest(VOIs) that
determine the consumer preferences through:
Focus Group Discussions
Depth Interviews through which we identified the VOIs for our
research objective.
Developing a questionnaire for collecting primary data.
Research Design
• Type  Exploratory research  Determining VOI
• Nature  Both qualitative(arrive inferences through
questionnaire) and quantitative(through frequency)
Data collection tools

Just primary research, not secondary as finding research was focused
on finding VOIs from Exploratory data and then check them in the
Primary Research.
An online questionnaire was floated of which 126 participants
responded.
Two primary scaling techniques employed: the Nominal Scale and the
Likert Scale.
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Sample plan
Segments: People who prefer listening to music on Speakers,
earphones and headphones
Technique: The sampling technique used for this project was the
convenience sampling technique where we tried to pick up any
available set of respondents who will be useful for our research.
However, we ensured that all our respondents fall i n one of the
categories mentioned above.
Sample size: Questionnaire  126 respondents

FGD  2 discussions with 5 people each
In-depth interviews  2 interviews of 10 minutes each
FGD 1 findings
Majority of the participants were tech savvy guys and they all owned
wireless speakers
Purchase through customer reviews and popular you tuber reviews
They were willing to pay extra premium for additional features like
Wi-Fi enabled and voice controlled feature
Considering known brands to be advanced in techn ology so should
not lower price range. Can hamper their image
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Wi-Fi enabled and voice controlled feature was their main area of
interest, besides battery backups, sound quality and portability .
FGD 2 findings:
Majority of the participants of the focused group discussion owned a
medium range speaker and wanted the best value for money.
Their main focus was on sound quality, bass and features
They demanded value for money owing to income constraints.
Additionally, they were unwilling to pay extra premium fo r additional
features like Wi-Fi and voice controlled
They complaint about poor battery backups in their wireless speakers
which made them switch to earphones
In-depth interview findings:

Majority of the participants of the focused group discussion owned a
medium range speaker and wanted the best value for money.
Their main focus was on sound quality, bass and features
They demanded value for money owing to income constraints.
Additionally, they were unwilling to pay extra premium for additional
features like Wi-Fi and voice controlled
They complaint about poor battery backups in their wireless speakers
which made them switch to earphones
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DATA ANALYSIS
Analysis Used:
 Simple tabulation (simple frequency count)
 Cross tabulation (relationship between variable s)
 Mean, Variance and Standard deviation for variables
 Conjoint Analysis
SURVEY ANALYSIS
1.Do you like listening to music ?
90% of the respondents to this survey like listening to music while for the rest 10% it depends
on their mood.
2.Which device do you prefer to listen to music ?
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42% of the respondents to this survey prefer earphones to listen to music while 1/3 rd of the
overall respondents prefer to listen to music on speakers.
3. Duration for which respondents listen to music in a day
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Here, we see that around 40% of the respondents listen to music for less than 1 hour a day
while 26% listen more than 2 hours a day.
4. People who would want a Voice controlled Wi -Fi enabled speaker

which can search and play songs over their c urrent audio device
We see that, more than 80% of the respondents want to use such a device. Hence there is a
considerable market share which the company can capture.
10 | P a g e
Attributes/Features the respondents would like

their speaker to have:
a. Search & Play songs online using voice
11 | P a g e
b. Volume and Track control using voice
12 | P a g e
c. Pocket Friendly
13 | P a g e
d. Compact & Portable
14 | P a g e
e. Light Weight
15 | P a g e
16 | P a g e
f. Battery Backup
17 | P a g e
g. Warranty
h. Durable
18 | P a g e
i. Sound Quality
19 | P a g e
j. Stylish
20 | P a g e
21 | P a g e
k. Wi-Fi/Bluetooth enabled
22 | P a g e
Analysis for Attributes/Features :
23 | P a g e
Willingness to pay for a voice enabled speaker
Here, we can see that almost 60% of the respondents are willing to pay more than ₹3000 to get
their speaker voice enabled. If we can club this with other features and attributes we will
probably convert some more respondents from below ₹3000.
Willing to pay 30% premium over existing

speakers
24 | P a g e
Around 1/3 r d of the respondent are ready to pay 30% premium or more if other
attributes/features are added.
If Smart headphones are launched, would the respondents change their preference
25 | P a g e
Majority of the respondents are indifferent between smart headphones or speakers
On an average how often do respondents change their speakers
26 | P a g e
Hence, respondents are reluctant to change their speaker even if there is slight upgrade in
technology and also want their speakers to be dura ble
27 | P a g e
Home Automation Devices over Voice enabled

speakers
Minimum Maximum Mean Standard Deviation Variance Count
1 7 4.61 1.7 2.9 126
28 | P a g e
Minimum Maximum Mean Standard Deviation Variance Count
1 7 3.57 1.73 3 126
29 | P a g e
Perception that voice enabled speakers are a

waste of money
30 | P a g e
Cross Tab Analysis :

When conducting survey analysis, cross tabulations (also referred to
as cross-tabs) are a quantitative research method appropriate for
analysing the relationship between two or more variables. Cross
tabulations provide a way of analysing and comparing the results for
one or more variables with the results of another (or others). The
axes of the table may be specified as being just one variable or
formed from a number of variables. The resulting table will have as
many rows and columns as there are codes in the corresponding axis
specification.
In many research reports, survey results are presented in aggregate
only – meaning, the data tables are based on the entire group of
survey respondents. Cross tabulations are simply data tables that
present the results of the entire group of respondents as well as
results from sub-groups of survey respondents. Cross tabulations
enable you to examine relationships within the data that might not
be readily apparent when analysing total survey responses.
31 | P a g e
32 | P a g e
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CONJOINT ANALYSIS
36 | P a g e
Conjoint analysis' is a survey-based statistical technique used in market

research that helps determine how people value different attributes (feature,
function, benefits) that make up an individual product or service.
The objective of conjoint analysis is to determine what combination of a
limited number of attributes is most influential on respondent choice or
decision making. A controlled set of potential products or services is shown to
survey respondents and by analysing how they make preferences between
these products, the implicit valuation of the individual elements making up
the product or service can be determined. These implicit valuations (utilities
or part-worth’s) can be used to create market models that estimate market
share, revenue and even profitability of new designs.
PARAMETER SELECTION FOR CONJOINT

ANALYSIS
37 | P a g e
Product Types:
38 | P a g e
Pricing for the Products
39 | P a g e
Rankings of different products
Here we find that P1 product is consistently ranked in the top 3 preferences of

the respondents
Percentage product preferences
40 | P a g e
Findings & Recommendations :

Attributes and features like Sound quality and loudness, Battery
backup, Voice and Wi-Fi enabled, bass can be added to attract new
customers
Very high demand if present for Voice enabled + Wi -Fi speaker.
More than 50% of the people are ready to pay a premium of 30% in
order to get upgraded to the voice enabled speakers.
Also, if more features are provided in combination with the voice +
Wi-Fi enabled speakers, customers don’t mind paying extra for the
same.
Products P1, P2, P3 can be launched with the mentioned specification
Price range for these products can be between ₹4,600 to ₹5,200
If a lower priced version is launched, the attribute of style can be
compromised upon
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Indian Institute of Management Indore Post Graduate Programme in Management

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MARKET RESEARCH – VOICE ENABLED + WI-FI SPEAKERS

INDIAN INSTITUTE OF MANAGEMENT

RESEARCH OBJECTIVES / QUESTIONS

Data collection tools

Sample size: Questionnaire  126 respondents

In-depth interview findings:

2.Which device do you prefer to listen to music ?

3. Duration for which respondents listen to music in a day

4. People who would want a Voice controlled Wi -Fi enabled speaker

Attributes/Features the respondents would like

a. Search & Play songs online using voice

b. Volume and Track control using voice

d. Compact & Portable

Analysis for Attributes/Features :

Willingness to pay for a voice enabled speaker

Willing to pay 30% premium over existing

Majority of the respondents are indifferent between smart headphones or speakers

On an average how often do respondents change their speakers

Home Automation Devices over Voice enabled

Minimum Maximum Mean Standard Deviation Variance Count

1 7 4.61 1.7 2.9 126

Minimum Maximum Mean Standard Deviation Variance Count

1 7 3.57 1.73 3 126

Perception that voice enabled speakers are a

Cross Tab Analysis :

Conjoint analysis' is a survey-based statistical technique used in market

PARAMETER SELECTION FOR CONJOINT

Pricing for the Products

Rankings of different products

Here we find that P1 product is consistently ranked in the top 3 preferences of

Percentage product preferences

Findings & Recommendations :

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