The Research Minefield

Marketers & their agencies often end up working

at cross-purposes !
 Companies are getting too little out of their research efforts
because they are starting off on the wrong foot.
 Most companies conduct ‘right’ research for the ‘wrong’
reasons.
 Marketers jump to the conclusion first & then conduct
research to back up the idea.
This leads to one of the two situations :
 Research might start off with an inherent bias.
 Research findings are entirely different from what the
marketer wants to believe.
Case Of Multinational Contact Lens Maker
 About Case

 Wanted to set up operations in India.

 Hired an agency to estimate the market size & the

key characteristics of the consumer.

 Research was conducted only to develop the proper

entry strategy as the marketer has already made up its
mind to enter the country.
 Market Research

Market research agency developed the following

questionnaire to understand the thinking of existing &
potential contact lens users….
 Why did they wear contacts?
 What did they feel about it?
 How important was this in their lifestyles?
 Recommendations Given By Agency

 The client could expect a market size of 75,000 in top

10 cities in India.
 Therefore, the client should follow a “niche” strategy.

Clients refused this research as some secondary data

had estimated that market was at least 2.5times the
size that agency concluded.
 Secondary Data

 Indian men didn’t want to marry women with

spectacles.
 Every unmarried spectacled women between the age
18-26 were looking for ways to shed their
spectacles.
 Women were spending thousands of rupees on
beauty aids & fashion accessories.
 Arguments Given By The Agency

 When young spectacled urban women were asked the

said-they didn’t feel any need for contact lenses.
 Spectacles were more hassle-free
 Looking good in social occasions.
 Women preferred spending Rs 2,000 on clothes rather
on contact lenses.
 Recommendations

 Marketers need to be more flexible.

 Agencies should hold research so that it really comes

into its own in problem identification & in shifting
out the causes from the symptoms.
Beverage Case In Gujarat Market
 About The Case

 A beverage marketer found its sales stagnating in

Gujarat market.

 Its rivals were increasing their volumes.

Reasons sorted out by marketer for stagnation-

-- 7months earlier its rivals had cut price by Rs 2
 Management Decision Problem

 Whether it should cut prices to increase sales.

 Should the price cut match the competitor or should it

be even more to gain an edge.
 Research findings

 Consumers were not really price sensitive in that

beverage category.
 Only 30% of regular buyers were aware of the price
difference between the two brands.
 Hence, price cut by its rivals was not the factor for
dropping sales.
 Alternatives

 H1 :lack of dealer promotion.

 H2: lack of availability.

Further research proved the marketer was losing

because it had taken no steps to increase its own
coverage.
Be Specific
 Key research tasks

ABC XYZ
 Has the branding  Whether the sub-brand
registered at all? If so, name fitted with the
how strongly? image it wanted to
 What is the image of the create for the products.
newly created sub-  Whether the sub brands
brand? Has it stated name had any potential
acquiring an identity of & could be developed
its own? further.
 How is my sub-brand doing

how long do I need do I at all

to invest(ABC) invest(XYZ)

quantitative qualitative
study study
 What To Tell Your Agency

Most companies are in dilemma of:

 Telling the research agency everything it would like
to know.
 Revealing only the minimum the agency needs to
know.
The ideal research brief to the agency should have:
 Marketing problem
 Background to the problem
 Market research objectives
 Case:1(Research brief of soap case)

Information the client gave to its research agency:

 History of the brand: market size, share, growth,
equity, target group, competition etc.
 Business objectives: gain share, upgrade image.
 Hypothesis: existence of ‘vulnerable’ segments &
appropriate product categories.
 Research objectives: identification of potential
segments.
 Methodology: target group centers, stimulus material
 Case:2(research brief of confectionary case)

Following is what client briefed the agency while

asking for a comprehensive advertising pre-test:
 History of the brand advertising, competitive
advertising.
 Market & consumer
 Communication strategy
 Creative brief
 Intended & desired response to advertising
 Picking The Agency

Effective research depends to a large extent on how

good a agency is.

All clients need to do a routine check to see how their

agency stacks up.
 Personnel Criteria
 Personnel
 Project leader
 Image
 Integrity
 Specialization
 Creativity
 Other Criteria

 Data bank
 EDP
 Organization & administration
 Post study services
 Costs