Design a marketing experiment sample design

INTRODUCTION

This report aims to design a marketing experiment for sugar less dairymilk chocolates. The campaign is
TV advertisement campaign highlighting the reduced sugar content in the chocolate. Because of growing
health consciousness in the customer’s sugar free is considered a lot. The experiment is a before after
design experiment. Full factorial is not possible to calculate by the response of the ad due to not
accurate TRP. With change in several parameters accurate measurement cannot be obtained.

EXPERIMENT DESIGN

In this experiment the independent variable is the advertisement in the television and the dependent
variable is sales.

The control state in which this is ad is not telecasted is north part of India. And south part is the place
where ad is launched. These both places resembles the se culture and demographics differences and se
area with around the similar population.

Since the entire part of the country is exposed to the advertisement this will be significantly sufficient
for the statistical data to be calculated.

Because it is before and after experiment, the sales of the chocolate is measured for three months and
the sales for the three months of telecasting the advertisement is also calculated. These are then
processed to calculate the lift in sales.

This experiment definitely follows the first three rules of causality but not the fourth rule because there
is no possibility of some external source to be involved for increase in sales. Instead there might be
some rival companies who try to get the competition by introducing something in their product line.

ANTICIPATED ISSUES

Both the before and during experiment data is collected during the non festive season in South India
and the national wide campaign will be run in the festive season and this may result in large change in
the lift. Here the impact of advertising in the festive season will have huge chance of increasing the
sales.

Some external factors may be introduced during the ad campaign as entering of new competition or else
the reduction of price of chocolates from the other competitors.

The mentioned issues may or may not have effect on the sales directly or there may be some other
reason that may occur. This help us to decide whether to go on with the advertisement for the festival
season or not. There will sure be lift in sales even with some factors introduced and thus we can get a
final estimation of how much the budget should be for spending in the advertisement campaign.
EXPERIMENT 2.0

Another method of the experiment will be web based experiment. Web advertisement and campaign
running can be used to reach more TG easily and have the data collected and used for the perfect
calculation and the sales can be calculated. It can be a full factorial design with both price and
advertisement as the independent variables.

 It demonstrates the effect of more than one independent variable

 The web Insights calculated will provide the more information and buying behaviour of the
consumers accurately

This is more cheaper to implement and the reach to the consumers through social media and other
things will be a lot easy and our TG will be specifically be attracted to this.

The only negative thing is we can’t sell the product in single units and to be sold as a package or bulk
where there is a possibility of missing large number of customer’s who don’t want to order on bulk.