MRI MR Proposal Final C4

7/30/2019 MRI MR Proposal Final C4

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Marketing Research

India Ltd.

Submitted By: Group C3

Debraj Choudhary (PGDM No.12134)

Deepak Nesarikar (PGDM No.12135)

Dhrubajyoti Sahu (PGDM No.12136)

Gaurav Jhunjhunuwala (PGDM No.12134)

Kavitha P. (PGDM No.12143)

Maithri N. (PGDM No.12147)

A Marketing Research Proposal for XYZ Ltd.

Submitted To: Prof. M.R. Suresh

Submitted On: 27-05-2013


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Proposal: MRI Company

1. INTRODUCTIONOur companys 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 aspecialist 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 SUMMARYWe 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 thebasic 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. RESEARCHPURPOSETo 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 al ternatives 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 womenb. Income: upper class/ middle/ lower

3. How should we plan our distribution strategy so that we can cover all parts ofMysore?


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4. Which medium is most appealing for the women?a. Television Advertising

b. Online Advertisingc. Banners/ Local papers/Magazines etc.d.

Movie-stars5. Which shape of lipstick is most appealing for the women?

6. What should be our segmentation and positioning of the brand?Cri ter ia 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. Perceived value of the new product and differentiation from competitors.2. Brand name recognition.3. Cost versus benefit analysis of marketing media.4. 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.

TimingWe 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 Companys 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. RESEARCHOBJECTIVESThe two major objectives of this study are:

1. To determine the factors influencing the buying behaviour of lipstick among thebuyers in Mysore

2. To determine the Marketing mix that the company must concentrate on for effectiveexploitation 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 perceivedbrand 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. ( Ex-shape/fragrance/colour/size) (4Ps-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. (4Ps-Place)4. To estimate average spending of women on their brand of lipstick annually. (4Ps-

Price)

5. To find which advertising medium is most appealing for females (4Ps-Promotion)Hypothesized statements

1. There is relationship between age and place, price, promotion, product related factors2. There is relationship between income and place, price, promotion, product related

factors

3. There is significant difference between purchase patterns according to income and agegroups

4. Choice of brand and money spent is related to occupation and income of the consumer5. Brand, Price, Design are the important factors for purchase decision6. Friends are most important influence in purchase decision7. 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. RESEARCHDESIGNSampling:

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 Minimum

Respondents

Category- Income Minimum

Respondents

16-20 10 Below 5000 10

20-30 10 5000-10000 10

30-40 10 10000-20000 10

40-50 10 20000-30000 1050 above 10 30000 above 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.

Offlinequestionnaire: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--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 ProcessConsent 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 group-To 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 facilitationThis 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 process-

1. WelcomeWe 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 processNext 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, were 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 dont have side conversations Turn off cell phones if possible Have fun

4. Turn on Tape Recorder5. 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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I nformation requir ement table

Source: Primary I nformation

Respondent group Info required Scaling

Retailers/ sales person Brands stocked

PriceDaily sales

Customer class

Nominal

Display strategy

Cash discounts effect

Customer preferences

Descriptive (in depth

interview)

Malls manager Brands stocked

Price

Daily sales

Customer class

Nominal

Promotion and display strategy

Customer preferences

Descriptive (in depth

interview)

Consumer group Buying behaviour Focus group discussion

Individual consumer Age/income/ occupation

Purchase occasion

Choice of brand

Choice of location

Information search for purchase

Buying influencing person

Nominal

Money spent of purchase

Reason for use of brand

Reason for purchase location

Ordinal

Frequency of purchase Open ended question

Price factor Interval

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


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Factors or Variables

Current scenario: current choice of brand, reason for it answered in macro productfactors 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 ofpurchase,

Location factors: variety, distance/convenience, class of crowd visiting,exclusiveness, atmosphere and dcor, 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

F ield 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 teamwill 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 TABLESIncome

AgeBelow 5000 5000-10000 10000-20000 20000-30000 30000 above

16-20 x x x x x

20-30 x x x x x

30-40 x x x x x

40-50 x x x x x

50 above x x x x x

Brand name Frequency marks Percentage of sample

x x x

Sample table for Product factors

Frequency

marks

Leas

t

(1)

Low

(2)

Me d

(3)

High

(4 )

Most

(5 )Total

frequenc

y

(a)

Weighted

sum

(b)

Mean

Brand 2 4 7 9 0 =2+4+7+

9+0

=1*2+2*4+

3*7+4*9+

5*0

=

(b)/(a)

Design 3 4 7 8 9

Quality 1 5 6 2 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 u se the L ipst ick? Yes No

3.Occupation Professional- front desk job, saleswomen, receptionist Professioncorporate/back office job Fashion industry/ Air hostess/ Film industry, profession where looks are important Business owner Service ( teacher, government,) Student Retired4.M onthl y in come/ pocket money Below 5000 5000-10000 10000-20000 20000-30000 30000 above

Purchase related questions

5.Which companys Lipstick do you use current ly?a) Lakme b) Oriflame c) Revlon d) Maybellinee) Elle 18 f) Cover girl g) Bobbi brown h) Maci) Avon j) LOreal k) Lancme l) Body shopm) Saint Laurent( YSL)

n) Chanel o) Dior p) Guerlianq)

Others: (Mention name)


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6.Th e bran d I cur r ent l y use has fol l owing char acter ist ics?1 2 3 4 5

L ow pr ice H igh pr ice

Consistent qual i ty I nconsistent qual i ty

L ow sat isfact ion H igh sat isfact ionF or midd le in come F or r i ch people

Ol d fashi oned Styl ish, moder n

Du l l Exc i t i ng

Norma l Un ique

7.Rank th e f actors impor tant f or you to ch oose a bran d?( gi ve score sothat tota l wi l l be 100)

factor scorea) Brand

b) Designc) Qualityd) Beautiful

packaging

e) Importedf) Made from safe

environment

material

g)

Long lastingh) PriceTOTAL 100

8. I use l i pst i ck? Rarely Daily Occasionally (marriage, party etc.) Dont use Just started using9.F r om where do you pur chase the l i pst i ck? Department stores Malls Fancy stores Supermarkets ( Big Bazaar, More ) Exclusive outlets Local market Online e- purchase


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10 .Th e fol lowi ng factors have importance for choosin g my buyin g locat ionimportance Least Low Medium High mostVariety

Distance/convenie

nce of shop

Class of crowd

visiting

Exclusiveness

Atmosphere and

dcor

Display

Testing facility

Lowest price/

offers/cashdiscount

11 .Where do you get i nf ormat i on about new product?importance Least Low Medium High mostTV advertising

Radio advertising

Bill board

Newspaper

advertising

Magazine

advertising

Catalogue and

Brochure

Sales person

online

12 .Who are the per sons that in f l uence your buyin g decision the most? Father/ Mother Friend Brother/sister Spouse Celebrity You ( self)13 .Who ar e the per sons that go with you t o buy l i pst ick ? Father/ Mother Friend


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Brother/sister Alone Spouse If other, specify: .14 .H ow much mon ey do you spend on pur chasin g L ipst ick yearl y? 0-500 500-1000 1000-1500 1500-2000 2000

Documents

MRI MR Proposal Final C4