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.

The Issue: Wanted to understand ageing in women Technique: Asked women to put together the story of their lives in pictures (photo-diaries). (photogiving it a better idea of how they aged over the years .Hindustan Unilevers Ltd.

HSBC: Credit Cards-from temptress to Cardsfriend. Technique used: Collages. Technique used: Projective techniques Ranbaxy: What is ¶health· and ¶being healthy·. dyads and triads .

. Market Research Society of India (MRSI).´Traditional consumer insight models are insufficient to gauge consumer attitudes and choices at a micro level." says B. Pradeep. President.V.

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 .

MORE DISCERNING CONSUMERS AND CHANGING PREFERENCES AND BEHAVIOUR PATTERNS . 30 CR.MORE PROFESSIONAL MANAGEMENT *Industry estimates .GROWTH OF MARKETING RESEARCH IN INDIA INDIAN MR INDUSTRY: GROWN FROM RS. TODAY* REASONS FOR GROWTH . IN NINETIES TO ABOUT RS. 700 CR.LIBERALIZATION AND INCREASED COMPETITION .

Nestle .Glaxo Smith Kline Beecham .ITC -Godfrey Philips .CHANGING PROFILE OF MR USERS Multinationals (Particularly FMCG) Have Been Traditional Users Of MR In India: : .Pepsi -P&G .Colgate Palmolive .Cadburys .HLL .Coca-Cola .

Godrej Consumer Care -Mahindra and Mahindra .Maruti .Dabur .Godrej Appliances .Ranbaxy .Changing Profile Of MR Users Companies Of Indian Origin also Adopting MR .Asian Paints .Marico .

MTNL -Taj Hotels .Tata Infocom Business to Business Users -Indian Flavors and Fragrances -Tetrapack -Microsoft -ACC -GAIL .Changing Profile Of MR Users Service Firms are Increasingly Adopting MR -Bharati Cellular .ICICI Prudential .Reliance Indicom .Hutch .Shoppers Stop .

Mi 17 .Qualysis .TNS Medium Agencies .Pathfinders .Synovate .Shaman Marketing Research .Indica Research .Research International Small Agencies .March Market Research .Integrated Marketing Research * Illustrative List . Nielsen-ORG-Marg Nielsen-ORG.Hansa Research .IMRB International .A.MARKETING RESEARCH AGENCIES IN INDIA* Large MR Agencies .C.Market Pulse .

69 43. 1001Group C Rs.500 Cr.Rs.500. Lakhs) 125.Rs. Group D < Rs.27 81.500Rs. 2000 Cr Group B Rs 1001.Mean Annual Expenditures on Marketing Research by Organization Size n = 131 Organization Size (Sales Turnover) Group A > Rs.79 .2000 Cr.1000 Cr.21 120.75 79. Mean Expenditure Mean Expenditure (in Rs.

396** .01 level .Correlation between Organization Sales Turnover and Expenditure on Marketing Research Annual Sales Turnover Annual Marketing Research Expenditure n=131 * *Significant at 0.

83 57.85 81.59 29.91 98.79 . Lakhs) 111.Mean Annual Expenditure on Marketing Research n=131 Industry type Consumer NonNonDurables Consumer Durables Services Industrial Products Total Mean Expenditure Mean Annual Expenditure ( Rs.

Total Mean Annual Marketing Research Expenditure as % of Sales 0. Group D < Rs.1000 Cr.500 Cr.21 0.15 . 2000 Cr.2000 Cr. Group C Rs.12 0.500Rs. Group B Rs.1001Rs.17 0.500-Rs.1001-Rs.Expenditure on Marketing Research as a Percentage of Sales by Organization Size Organization Size Group A Rs.06 0.

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** .01 level -.

28 0.10 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 0.15 .04 0.11 0.

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 % 2 3 4 5 % of total MR Exp.

12 11.39 10.% 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 17.77 14.81 12.84 72.95 Rank 1 2 3 4 5 6 - .02 6.

00 28.21 .79 % Expenditure on Quantitative Research Mean 71.00 71.48 30.00 73.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 27.40 69.52 70.60 30.

DATA COLLECTION TECHNIQUES IN MARKETING RESEARCH .

28 2.05 3.26 1.19 4.58 2.20 4.37 Rank 1 2 3 4 5 6 7 8 .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 4.67 1.

) Focus groups -online Surveys -Web Focus groups -telephone Surveys -fax Surveys ²disk by mail Virtual setting Focus groups -video-networked videoScannerScanner-based research 0.64 0.Ethnographic research.05 0.06 0.74 0.01 0.66 0.48 0. Surveys ²mail.paper mailSurveys -e-mail Laboratory simulation Mechanical observation devices (Cameras etc.56 0.71 0.14 0.52 0.89 0.01 9 10 11 12 13 14 15 16 17 18 19 20 21 .

Bubble Drawings. Onion Technique (getting consumers to describe the layers of the product or brand). Brand World and Solar System. Mood Maps. . Obituaries for the brand/ product. Picture Sorts. Election Speeches for the brands/products. Celebrity Fits.Popularly used Projective Techniques Personification. Collages. Conflict Groups (two rival groups speaking for and against the brand/product).

DATA ANALYSIS TECHNIQUES IN USE .

38 1.10 2.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.46 3.10 0.59 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 - On Scale from 0=Not used to 5=Used Very Frequently .35 3.55 2.45 4.59 3.38 3. Multi-Dimensional Scaling Others Mean Frequency of Use 4.29 1.69 1.66 4. Discriminant Analysis.77 2.

dyads and triads) Segmentation and Positioning models (including Psychographic and Life style Segmentation) Tracking Studies Demand forecasting models Pricing Studies( e.g.g. 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. price elasticity pricestudies) Rank 1 2 2 4 5 6 7 7 9 .

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 .

47 .75 91.38 4.SHARE OF MARKETING RESEARCH CONDUCTED IN-HOUSE VS.62 94.53 Industry Type Consumer NonNon-durables Consumer Durables Industrial Products Services Total % Research Conducted InIn-house 3.29 93.25 8.62 95.38 5. INOUTSOURCED % Research Outsourced To External Research Agencies 96.71 6.

0 65.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 50.7 65.3 34.0 60.4 .0 39.6 Industry Type Marketing Research being handled by line executives Number 10 12 17 13 52 % of Category 23.0 35.3 50.

7 13.3 5.0 25.0 % of Total 8. 10 Cr.0 45. 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 20.6 53.7 .0 Group B Agencies (Less than Rs.0 20.7 80.3 - 5.) % of Category 0. 10 Cr.Select Computer-based Tools/Techniques Reported Being Owned by Marketing Research Agencies Group A Agencies (Rs.

0 22.) % of Category % of Total 40.0 100.Group A Agencies (Rs. 10 Cr.7 6.0 0.7 0.9 20.0 2. 10 Cr.9 .6 85.0 75.0 10. 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.0 8.

Predictive Models and Tools Computerized Data Capture Methods Increasing Use of Qualitative Research Customer Satisfaction Research Ethnographic Research Data Warehousing. 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.

20 88.56 14.37 88.04 91.96 8.80 .Share of Custom and Syndicated Research As Percentage of Total Marketing Research Expenditure % Expenditure on Syndicated Research Mean 20.80 11.44 85.20 % Expenditure on Custom Research Industry Type Consumer NonNonDurables Consumer Durables Industrial Products Services Total Mean 79.63 11.

acnielsen.000 outlets across 367 cities and 983 villages in India.Major Syndicated Services Available in India Continuous Syndicated Services (i) Retail Store Audits ACNielsen-ORGACNielsen-ORG-MARG (www. (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. 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. .com) conducts retail store audits covering 60.

Tracks 70. The variables used are geography. durables ownership. age of the housewife.000 sample individuals representing all the Class I towns (with population over 100.com) operates its household panels in ten metropolitan cities in the country and monitors over 30 consumer product categories. eating and entertainment habits (iv) Readership.imrbint.000 households based on their SEC classifications.(iii)Household Purchase Panels IMRB International (www. 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. It runs PeopleMeter TV Panels with over 20.000) -Readership Studies National Readership Study and Indian Readership Study .

-AC Nielsen-ORG-MARG-Market Monitor-Section I Nielsen-ORG-MARGMonitorprofiles Indian economy.B.g. Non-Continuous Syndicated Services Non‡ Comprehensive Market Studies ‡ Sector Specific Studies e.g. media etc. demographics. .. demographics and lifestyles. brands. media. TARGET GROUP INDEX (IMRB): It combines products.Section II market profiles of 81 product categories e. trade.

21 4.09 4.60 2.66 3.49 3. 5= Very high impact Industry Methods Data Collection Sampling Data Analysis Total Mean Consumer Non Durables Mean Consumer Durables Mean Industrial Products Mean Services Mean 2.25 4.70 3.76 .Impact of Technological Developments on Marketing Research:Perceptions of Marketing Research Managers Scale: 1=Very low impact.63 2.70 3.77 2.70 2.60 2.88 4.08 4.

37 3.72 4.95 4.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 4.45 .47 4.

advertising research. Top 6 application areas that account for over 70 % of customized research expenditures: New product research.Major Conclusions Usage of MR in India is still fairly low-mean lowexpenditures 0.15 % of sales. brand studies. consumer behavior studies and product/packaging improvement research and customer satisfaction research. .

Major Conclusions (Contd. Quantitative research expenditures: 30:70 . depth interviews and mall intercepts. Innovations in qualitative research. Infocus groups. Share of Qualitative vs.) Dependence mainly on traditional methods of primary data collection: In-person surveys.

Major Syndicated research studies available: retail audits. . household panels. pharmaceutical audit. readership and media audiences.Major Conclusions (Contd.) Consumer durables report the largest number of innovations in MR applications and techniques.

out-sourced research outexpenditures: 5:95 Organizations with one or more MR personnel: 60 %.) InIn-house vs. Organizations with MR being handled by line managers: 40 % .Major Conclusions (Contd.

-Respondent non.) Major challenges/hurdles for MR in India: -Lack of trained and reliable field data collection personnel. -Management·s unwillingness to make expenditures required for quality research . -Lack of qualified and trained research personnel. non-Management·s insistence on speedy results at the cost of research quality.cooperation due to lack of time.Major Conclusions (Contd.

Major Conclusions (Contd.) MANAGERIAL PERCEPTIONS OF MR Overall marketing research perceived as serving a useful purpose. 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. Mktg. decision-makers rate MR·s decisioncontribution to new product introduction.

Need for focused efforts to attract and retain people in MR. Building partnerships with external research suppliers. Investment in developing in-house inresearch capabilities.Major Recommendations Leveraging technology for marketing research. .

Major Recommendations (contd. An expanded skills set required for marketing researchers. Marketing research needs more marketing! marketing! .) Expansion in the scope of the MR function within organizations. Need to address managerial perceptions about aspects of MR. Need for medium and small agencies to rethink strategy. Certification in MR.

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