GAINING CONSUMER INSIGHTS: MARKETING RESEARCH

IN INDIA

Marketing Research: The Marketing Research: The quest for the real consumerquest for the real consumer

Hindustan Unilevers Ltd.: Studying Hindustan Unilevers Ltd.: Studying brushing habits in rural India. brushing habits in rural India.

Technique used: Technique used: EthnographicEthnographic researchresearch

Marico: What is the ‘ideal Marico: What is the ‘ideal relationship’ with spouse amongst relationship’ with spouse amongst middle class Indian housewives. middle class Indian housewives.

Technique used: Technique used: CollagesCollages..

Pepsi: Wanted to develop an advertising Pepsi: Wanted to develop an advertising

concept for ‘daring’ for the age group 19-concept for ‘daring’ for the age group 19-22.22.

Technique: Gave video cameras to Technique: Gave video cameras to youngsters and asked them to shoot youngsters and asked them to shoot pictures of what they thought was daring.pictures of what they thought was daring.

Hindustan Unilevers LtdHindustan Unilevers Ltd..The Issue: Wanted to understand ageing in The Issue: Wanted to understand ageing in womenwomen

Technique: Asked women to put together Technique: Asked women to put together the story of their lives in pictures (photo-the story of their lives in pictures (photo-diaries), giving it a better idea of how they diaries), giving it a better idea of how they aged over the yearsaged over the years

HSBC: Credit Cards-from temptress HSBC: Credit Cards-from temptress to friend. Technique used: to friend. Technique used: Projective Projective techniquestechniques

Ranbaxy: What is ‘health’ and ‘being Ranbaxy: What is ‘health’ and ‘being healthy’. Technique used: healthy’. Technique used: Collages, Collages, dyads and triadsdyads and triads

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

Marketing Research in India

Growth of marketing research (MR) in Growth of marketing research (MR) in IndiaIndiaExpenditures on MR by Indian firmsExpenditures on MR by Indian firmsMajor application areas of MRMajor application areas of MRMethods and techniques in MRMethods and techniques in MROrganization for MROrganization for MRInnovations in MRInnovations in MRImpact of technology on MR practicesImpact of technology on MR practicesFuture trends in MR in IndiaFuture trends in MR in IndiaManagerial perceptions of MRManagerial perceptions of MRHurdles in conduct of MR in IndiaHurdles in conduct of MR in India

GROWTH OF MARKETING RESEARCH IN INDIA

INDIAN MR INDUSTRY: GROWN FROM RS. 30 CR. IN NINETIES TO ABOUT RS. 700 CR. TODAY*

REASONS FOR GROWTH - LIBERALIZATION AND INCREASED COMPETITION - MORE DISCERNING CONSUMERS AND CHANGING PREFERENCES AND BEHAVIOUR PATTERNS - MORE PROFESSIONAL MANAGEMENT

*Industry estimates

CHANGING PROFILE OF MR USERS

Multinationals (Particularly FMCG) Have Been Traditional Users Of MR In India::

- HLL - ITC -Godfrey Philips - Nestle - Cadburys - Coca-Cola - Pepsi - P & G - Colgate Palmolive - Glaxo Smith Kline Beecham

Changing Profile Of MR UsersChanging Profile Of MR Users

Companies Of Indian Origin also Companies Of Indian Origin also Adopting MRAdopting MR

- Dabur - Marico - Ranbaxy - Asian Paints - Godrej Appliances - Godrej Consumer Care -Mahindra and Mahindra - Maruti

Changing Profile Of MR UsersChanging Profile Of MR Users

Service Firms are Increasingly Adopting MR Service Firms are Increasingly Adopting MR

--Bharati CellularBharati Cellular - Hutch- Hutch - ICICI Prudential- ICICI Prudential - Shoppers Stop- Shoppers Stop - MTNL- MTNL -Taj Hotels-Taj Hotels - Reliance Indicom- Reliance Indicom - Tata Infocom- Tata Infocom

Business to Business UsersBusiness to Business Users--Indian Flavors and Fragrances Indian Flavors and Fragrances -Tetrapack-Tetrapack-Microsoft-Microsoft-ACC-ACC-GAIL-GAIL

MARKETING RESEARCH AGENCIES MARKETING RESEARCH AGENCIES IN INDIA*IN INDIA*

Large MR AgenciesLarge MR Agencies - A.C. Nielsen-ORG-Marg- A.C. Nielsen-ORG-Marg

- IMRB International- IMRB International - TNS - TNS

Medium AgenciesMedium Agencies Small AgenciesSmall Agencies - Synovate - March Market Research - Synovate - March Market Research

- Indica Research - Qualysis - Indica Research - Qualysis - Hansa Research - Mi 17 - Hansa Research - Mi 17 - Pathfinders - Market Pulse- Pathfinders - Market Pulse - Research International - Shaman Marketing - Research International - Shaman Marketing

Research Research - Integrated Marketing - Integrated Marketing

Research Research

* Illustrative List* Illustrative List

Mean Annual Expenditures on Marketing Mean Annual Expenditures on Marketing Research by Organization SizeResearch by Organization Size

n = 131n = 131

Organization SizeOrganization Size(Sales Turnover)(Sales Turnover)

Mean ExpenditureMean Expenditure(in Rs. Lakhs)(in Rs. Lakhs)

Group A Group A > Rs. 2000 Cr> Rs. 2000 Cr 125.21125.21

Group B Group B Rs 1001- Rs.2000 Cr.Rs 1001- Rs.2000 Cr. 120.75120.75

Group CGroup CRs.500- Rs.1000 Cr.Rs.500- Rs.1000 Cr. 79.6979.69

Group DGroup D< Rs.500 Cr.< Rs.500 Cr. 43.2743.27

Mean ExpenditureMean Expenditure 81.7981.79

Correlation between Organization Correlation between Organization Sales Turnover and Expenditure on Sales Turnover and Expenditure on

Marketing Research Marketing Research

Annual SalesAnnual SalesTurnoverTurnover

Annual Marketing Annual Marketing Research Research

ExpenditureExpenditure .396**.396**

n=131

* *Significant at 0.01 level

Mean Annual Expenditure on Marketing Research

n=131

IndustryIndustrytypetype

Mean Annual ExpenditureMean Annual Expenditure( Rs. Lakhs)( Rs. Lakhs)

Consumer Non-Consumer Non-DurablesDurables 111.91111.91

Consumer Consumer DurablesDurables 98.8398.83

ServicesServices 57.5957.59

Industrial Industrial ProductsProducts 29.8529.85

Total Mean Total Mean ExpenditureExpenditure 81.7981.79

Expenditure on Marketing Research Expenditure on Marketing Research as a Percentage of Sales by Organization Sizeas a Percentage of Sales by Organization Size

OrganizationOrganizationSizeSize

Mean Annual Marketing Mean Annual Marketing Research Expenditure Research Expenditure

as % of Sales as % of Sales

Group AGroup ARs. 2000 Cr.Rs. 2000 Cr. 0.060.06

Group BGroup BRs.1001-Rs.2000 Cr.Rs.1001-Rs.2000 Cr. 0.120.12

Group CGroup CRs.500-Rs.1000 Cr.Rs.500-Rs.1000 Cr. 0.170.17

Group DGroup D< Rs.500 Cr.< Rs.500 Cr. 0.210.21

TotalTotal 0.150.15

Correlation between Organization Sales and Correlation between Organization Sales and Percentage of Sales Spent on Marketing ResearchPercentage of Sales Spent on Marketing Research

Marketing Research Marketing Research Expenditure as aExpenditure as a

Percentage of SalesPercentage of Sales

AnnualAnnualSales Sales

TurnoverTurnover-.272**-.272**

n=131 * *Significant at 0.01 level

Expenditure on Marketing Expenditure on Marketing Research as Percentage of Sales Research as Percentage of Sales

by Industry Typeby Industry TypeIndustry

Type

Annual Expenditure on Marketing Research as

% of Sales

Consumer Non Durables 0.28

Services 0.11

Consumer Durables 0.10

Industrial Products 0.04

Total Sample 0.15

APPLICATION AREAS APPLICATION AREAS FOR MARKETING FOR MARKETING

RESEARCHRESEARCH

Top Five Customized Top Five Customized Marketing Research Marketing Research Application AreasApplication Areas

Top Five Customized Marketing Research Customized Marketing Research Application Areas Across IndustriesApplication Areas Across Industries

IndIndRankRank

Consumer Non Durables

Consumer Durables

Industrial Products Services

1New Product

ResearchNew Product

Research

Customer Satisfaction

Studies

Customer Satisfaction

Studies

2 Brand StudiesAdvertising Research

New Product Research

New Product Research

3Advertising Research

Consumer Behavior Research

Advertising Research

Advertising Research

4Consumer Behavior Research

Customer Satisfaction

Studies

Consumer Behavior Research

Consumer Behavior Research

5Product/Pack. Improvement

Research

Brand Studies

Product Improvement

Research

Product Improvement

Research

% of total MR Exp.

69 % 67 % 69 % 73 %

% EXPENDITURE ON RESEARCH % EXPENDITURE ON RESEARCH APPLICATION AREASAPPLICATION AREAS

ApplicationApplication MeanMean RankRank

New Product researchNew Product research 17.7717.77 11

Advertising researchAdvertising research 14.8114.81 22

Consumer behavior Consumer behavior researchresearch 12.1212.12 33

Customer satisfaction Customer satisfaction studiesstudies 11.3911.39 44

Brand studiesBrand studies 10.0210.02 55

Product/Packaging Product/Packaging improvement researchimprovement research 6.846.84 66

TotalTotal 72.9572.95 --

Share of Qualitative and Quantitative ResearchShare of Qualitative and Quantitative Research aas % of Total Marketing Research Expenditures % of Total Marketing Research Expenditure

TypeType

% Expenditure % Expenditure on Qualitative on Qualitative

ResearchResearch

% Expenditure % Expenditure on Quantitative on Quantitative

ResearchResearch

MeanMean MeanMean

Industry Industry Consumer Consumer

Non-durablesNon-durables28.6028.60 71.4071.40

Consumer Consumer DurablesDurables 30.4830.48 69.5269.52

Industrial Industrial ProductsProducts 30.0030.00 70.0070.00

ServicesServices 27.0027.00 73.0073.00

Total Total 28.7928.79 71.2171.21

DATA COLLECTION DATA COLLECTION TECHNIQUES TECHNIQUES

IN MARKETING RESEARCHIN MARKETING RESEARCH

Data Collection Methods- Data Collection Methods- Primary ResearchPrimary Research

Application AreaApplication Area MeanMean RankRank

Focus groups-in-personFocus groups-in-person 4.204.20 11

Surveys-at home/officeSurveys-at home/office 4.194.19 22

Depth interviewsDepth interviews 4.054.05 33

Projective techniquesProjective techniques 3.583.58 44

Surveys –mall interceptsSurveys –mall intercepts 2.282.28 55

Field observationField observation 2.262.26 66

Surveys -telephoneSurveys -telephone 1.671.67 77

Mystery shoppingMystery shopping 1.371.37 88On Scale from 0=Not Used to 5=Used Very FrequentlyOn Scale from 0=Not Used to 5=Used Very Frequently

Ethnographic research.Ethnographic research. 0.890.89 99

Surveys –mail- paperSurveys –mail- paper 0.740.74 1010

Surveys -e-mailSurveys -e-mail 0.710.71 1111

Laboratory simulationLaboratory simulation 0.660.66 1212

Mechanical observation Mechanical observation devices (Cameras etc.)devices (Cameras etc.) 0.640.64 1313

Focus groups -onlineFocus groups -online 0.560.56 1414

Surveys -WebSurveys -Web 0.520.52 1515

Focus groups -telephoneFocus groups -telephone 0.480.48 1616

Surveys -faxSurveys -fax 0.140.14 1717

Surveys –disk by mailSurveys –disk by mail 0.060.06 1818

Virtual settingVirtual setting 0.050.05 1919

Focus groups -video-Focus groups -video-networkednetworked 0.010.01 2020

Scanner-based researchScanner-based research 0.010.01 21 21

Popularly used Popularly used Projective TechniquesProjective Techniques

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

DATA ANALYSIS DATA ANALYSIS TECHNIQUES TECHNIQUES

IN USEIN USE

Data Analysis TechniqueData Analysis TechniqueMean Mean

Frequency Frequency of Useof Use RankRank

Measures of Central TendencyMeasures of Central Tendency 4.664.66 11

Measures Of DispersionMeasures Of Dispersion 4.454.45 22

Statistical Tests of SignificanceStatistical Tests of Significance 4.384.38 33

Correlation AnalysisCorrelation Analysis 3.593.59 44

Confidence IntervalsConfidence Intervals 3.463.46 55

Regression AnalysisRegression Analysis 3.353.35 66

Analysis Of Analysis Of Variance/CovarianceVariance/Covariance 3.103.10 77

Cluster AnalysisCluster Analysis 2.772.77 88

Factor AnalysisFactor Analysis 2.55 9

Conjoint Analysis 2.29 10

Time Series Analysis. 1.69 11

Discriminant Analysis. 1.38 12

Multi-Dimensional Scaling 1.10 13

Others 0.59 -

On Scale from 0=Not used to 5=Used Very FrequentlyOn Scale from 0=Not used to 5=Used Very Frequently

INNOVATIONS IN MARKETING INNOVATIONS IN MARKETING RESEARCHRESEARCH

Application/TechniqueApplication/Technique RankRank

Innovations in Customer Satisfaction ResearchInnovations in Customer Satisfaction Research 11

Ethnographic Research Ethnographic Research 22

Innovations in Advertising Research (Quantitative Innovations in Advertising Research (Quantitative Models and Qualitative Techniques)Models and Qualitative Techniques) 22

Innovations in Concept testing( including testing Innovations in Concept testing( including testing software & Qualitative techniques)software & Qualitative techniques)

44

Focus Groups Innovations (e.g. dyads and triads)Focus Groups Innovations (e.g. dyads and triads) 55

Segmentation and Positioning models (including Segmentation and Positioning models (including Psychographic and Life style Segmentation)Psychographic and Life style Segmentation) 66

Tracking Studies Tracking Studies 77

Demand forecasting modelsDemand forecasting models 77

Pricing Studies( e.g. price-pack studies, price Pricing Studies( e.g. price-pack studies, price elasticity studies)elasticity studies) 99

Application/TechniqueApplication/Technique RankRank

Brand Equity studiesBrand Equity studies 1010

Conjoint analysisConjoint analysis 1111

In-Depth Consumer motivation studiesIn-Depth Consumer motivation studies 1111

Online ResearchOnline Research 1313

Trial Purchase Prediction modelsTrial Purchase Prediction models 1414

Outlet Location/trade area researchOutlet Location/trade area research 1515

Pre-test marketing modelsPre-test marketing models 1616

Lead user analysisLead user analysis 1616

Customer Creativity Enhancement Customer Creativity Enhancement techniquestechniques 1616

Photo Diaries/diary placementsPhoto Diaries/diary placements 1919

Simulated test marketingSimulated test marketing 1919

Merchandising researchMerchandising research 1919

Virtual TestingVirtual Testing 1919

Quality Development IndicatorsQuality Development Indicators 2323

In-market TrialsIn-market Trials 2323

SHARE OF MARKETING RESEARCH SHARE OF MARKETING RESEARCH CONDUCTED IN-HOUSE VS. CONDUCTED IN-HOUSE VS.

OUTSOURCEDOUTSOURCED

Industry TypeIndustry Type% Research Conducted% Research Conducted

In-houseIn-house

% Research % Research Outsourced Outsourced To External To External

Research AgenciesResearch Agencies

Consumer Consumer Non-durablesNon-durables 3.383.38 96.6296.62

Consumer Consumer DurablesDurables 4.714.71 95.2995.29

Industrial Industrial ProductsProducts 6.256.25 93.7593.75

ServicesServices 8.388.38 91.6291.62

TotalTotal 5.475.47 94.5394.53

Number of Organizations with Full-time Number of Organizations with Full-time Personnel Assigned to Marketing Research Personnel Assigned to Marketing Research

Industry TypeIndustry Type

Organizations withOrganizations with1 or more persons 1 or more persons assigned full-time to assigned full-time to Marketing ResearchMarketing Research

Marketing Research Marketing Research being handled by line being handled by line

executivesexecutives

NumbeNumberr % of Category% of Category NumberNumber

% of % of CategoryCategory

Consumer Non Consumer Non DurablesDurables 3333 76.776.7 1010 23.323.3

Consumer Consumer DurablesDurables 2323 65.765.7 1212 34.334.3

ServicesServices 1717 50.050.0 1717 50.050.0

Industrial Industrial ProductsProducts 77 35.035.0 1313 65.065.0

TotalTotal 8080 60.660.6 5252 39.439.4

Select Computer-based Tools/Techniques Reported Being Owned by Marketing Research Agencies

Computer Aided Computer Aided Tools/SoftwareTools/Software

Group A Group A Agencies (Rs. Agencies (Rs.

10 Cr. Or 10 Cr. Or More)More)

Group B Group B Agencies Agencies

(Less than Rs. 10 (Less than Rs. 10 Cr.)Cr.)   

% of % of CategoryCategory % of Category% of Category

% of % of TotalTotal

Questionnaire Questionnaire Design SoftwareDesign Software 20.020.0 0.00.0 8.68.6

Computer Computer Assisted Assisted

Telephone Telephone Interviewing Interviewing

(CATI)(CATI) 53.353.3 5.05.0 25.725.7

Fully-Automated Fully-Automated Telephone Telephone

InterviewingInterviewing 13.313.3 -- 5.75.7

Computer Computer Assisted Assisted Personal Personal

Interviewing Interviewing (CAPI)(CAPI) 80.080.0 20.020.0 45.745.7

Computer Aided Computer Aided Tools/SoftwareTools/Software

Group A Group A Agencies (Rs. Agencies (Rs.

10 Cr. Or More)10 Cr. Or More)

Group B Group B Agencies Agencies

(Less than Rs. (Less than Rs. 10 Cr.)10 Cr.)   

% of % of CategoryCategory % of Category% of Category

% of % of TotalTotal

Computer Computer Assisted Self Assisted Self Interviewing Interviewing

(CASI)(CASI) 40.040.0 10.010.0 22.922.9

Fieldwork Fieldwork Management Management

SoftwareSoftware 20.020.0 0.00.0 8.68.6

Quantitative Quantitative Data Analysis Data Analysis

SoftwareSoftware 100.0100.0 75.075.0 85.785.7

Geographical Geographical Information Information

Systems Systems SoftwareSoftware 6.76.7 0.00.0 2.92.9

Future Trends in Marketing Research in India: Future Trends in Marketing Research in India: Perceptions of Marketing Research ProfessionalsPerceptions of Marketing Research Professionals

TrendTrend RankRank

Online ResearchOnline Research 11

Increase in use of Statistical Methods, Predictive Models Increase in use of Statistical Methods, Predictive Models and Toolsand Tools 22

Computerized Data Capture MethodsComputerized Data Capture Methods 33

Increasing Use of Qualitative ResearchIncreasing Use of Qualitative Research 44

Customer Satisfaction ResearchCustomer Satisfaction Research 55

Ethnographic ResearchEthnographic Research 66

Data Warehousing, Mining and ModelingData Warehousing, Mining and Modeling 77

Tracking StudiesTracking Studies 88

Growth of Syndicated ResearchGrowth of Syndicated Research 99

Developments in Media ResearchDevelopments in Media Research 1010

Greater Professionalisation of Marketing ResearchGreater Professionalisation of Marketing Research 1111

Rural ResearchRural Research 1212

Consolidation of Research Companies /Entry of Foreign Consolidation of Research Companies /Entry of Foreign PlayersPlayers 1313

Share of Custom and Syndicated Share of Custom and Syndicated ResearchResearch

As Percentage of Total Marketing As Percentage of Total Marketing Research Expenditure Research Expenditure

Industry TypeIndustry Type

% Expenditure % Expenditure on on

Custom Custom ResearchResearch

% Expenditure on% Expenditure on Syndicated Syndicated

ResearchResearch

MeanMean MeanMean

Consumer Non-Consumer Non-DurablesDurables 79.3779.37 20.6320.63

Consumer Consumer DurablesDurables 88.0488.04 11.9611.96

Industrial Industrial ProductsProducts 91.2091.20 8.808.80

ServicesServices 88.4488.44 11.5611.56

Total Total 85.8085.80 14.2014.20

Major Syndicated Services Major Syndicated Services Available in IndiaAvailable in India

Continuous Syndicated ServicesContinuous Syndicated Services(i) Retail Store Audits(i) Retail Store AuditsACNielsen-ORG-MARG (www.acnielsen.com) conducts retail ACNielsen-ORG-MARG (www.acnielsen.com) conducts retail store audits covering 60,000 outlets across 367 cities and store audits covering 60,000 outlets across 367 cities and 983 villages in India. 983 villages in India. (ii)Healthcare Sector Audits(ii)Healthcare Sector AuditsPharmaceutical AuditsPharmaceutical AuditsACNielsen-ORG-MARG conducts a Pharmaceutical Audit ACNielsen-ORG-MARG conducts a Pharmaceutical Audit which tracks sales of pharmaceutical formulations of 291 which tracks sales of pharmaceutical formulations of 291 companies (constituting 90 percent of the pharmaceutical companies (constituting 90 percent of the pharmaceutical formulation market) through a panel of 2236 chemists in formulation market) through a panel of 2236 chemists in 367 cities and 986 villages.367 cities and 986 villages.Prescription AuditsPrescription AuditsACNielsen-ORG-MARG conducts a prescription audit which ACNielsen-ORG-MARG conducts a prescription audit which provides information on the prescription habits of doctors provides information on the prescription habits of doctors through a panel of 2800 doctors in private practice. through a panel of 2800 doctors in private practice.

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

B. B. Non-Continuous Syndicated ServicesNon-Continuous Syndicated Services• Comprehensive Market StudiesComprehensive Market Studies• Sector Specific StudiesSector Specific Studies e.g. -AC Nielsen-ORG-MARG-Market Monitor-Section I e.g. -AC Nielsen-ORG-MARG-Market Monitor-Section I profiles Indian economy, demographics, trade, profiles Indian economy, demographics, trade,

media media etc.;Section II market profiles of 81 product etc.;Section II market profiles of 81 product categoriescategories e.g. e.g. TARGET GROUP INDEX (IMRB): It combines TARGET GROUP INDEX (IMRB): It combines

products, products, brands, media, demographics and lifestyles. brands, media, demographics and lifestyles.

Impact of Technological Developments on Impact of Technological Developments on Marketing Research:Perceptions of Marketing Research:Perceptions of Marketing Research ManagersMarketing Research ManagersScale: 1=Very low impact; 5= Very high impact

IndustrIndustryyMethodMethodss

TotalTotal

Consumer Consumer Non Non

DurablesDurablesConsumer Consumer DurablesDurables

IndustriaIndustrial l

ProductsProductsServiceService

ss

MeanMean MeanMean MeanMean MeanMean MeanMean

Data Data CollectiCollecti

onon 2.662.66 2.632.63 2.492.49 2.702.70 2.702.70

SamplinSamplingg 3.083.08 2.882.88 3.093.09 3.253.25 3.213.21

Data Data AnalysiAnalysi

ss 4.704.70 4.774.77 4.604.60 4.604.60 4.764.76

Role of Marketing Research in Managerial Role of Marketing Research in Managerial Decision-Making-Perceptions of Decision-Making-Perceptions of Marketing Research ManagersMarketing Research Managers

Scale: 1=Provider of data analysis ; 7=Provider of strategic business advice

Industry TypeIndustry Type MeanMean

Consumer Consumer Non-DurablesNon-Durables 4.724.72

Consumer DurablesConsumer Durables 4.374.37

Industrial ProductsIndustrial Products 3.953.95

ServicesServices 4.474.47

Total SampleTotal Sample 4.454.45

Major Conclusions

Usage of MR in India is still fairly low-mean Usage of MR in India is still fairly low-mean expenditures 0.15 % of sales;expenditures 0.15 % of sales;

Top 6 application areas that account for Top 6 application areas that account for over 70 % of customized research over 70 % of customized research expenditures: New product research, expenditures: New product research, brand studies, advertising research, brand studies, advertising research, consumer behavior studies and consumer behavior studies and product/packaging improvement research product/packaging improvement research and customer satisfaction research;and customer satisfaction research;

Major Conclusions (Contd.)

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

Major Conclusions (Contd.)

Consumer durables report the largest Consumer durables report the largest number of innovations in MR applications number of innovations in MR applications and techniques.and techniques.

Major Syndicated research studies Major Syndicated research studies available: retail audits, pharmaceutical available: retail audits, pharmaceutical audit, household panels, readership and audit, household panels, readership and media audiences.media audiences.

Major Conclusions (Contd.)

In-house vs. out-sourced research In-house vs. out-sourced research expenditures: 5:95expenditures: 5:95

Organizations with one or more MR Organizations with one or more MR personnel: 60 %; Organizations with MR personnel: 60 %; Organizations with MR being handled by line managers: 40 %being handled by line managers: 40 %

Major Conclusions (Contd.)

Major challenges/hurdles for MR in Major challenges/hurdles for MR in IndiaIndia::--Lack of trained and reliable field data collectionLack of trained and reliable field data collection

personnel;personnel;

-Respondent non- cooperation due to lack of time;-Respondent non- cooperation due to lack of time;

-Management’s insistence on speedy results at the-Management’s insistence on speedy results at the cost of research quality;cost of research quality;

-Lack of qualified and trained research personnel;-Lack of qualified and trained research personnel;

-Management’s unwillingness to make expenditures -Management’s unwillingness to make expenditures required for quality researchrequired for quality research

Major Conclusions (Contd.)

MANAGERIAL PERCEPTIONS OF MRMANAGERIAL PERCEPTIONS OF MR

Overall marketing research perceived as serving Overall marketing research perceived as serving a useful purpose. Mktg. decision-makers rate a useful purpose. Mktg. decision-makers rate MR’s contribution to new product introduction, MR’s contribution to new product introduction, customer satisfaction and improvement in sales customer satisfaction and improvement in sales performance as being highly positive;performance as being highly positive;

Major managerial perceptions that MR Major managerial perceptions that MR professionals must address:professionals must address:Speed of marketing research projectsSpeed of marketing research projectsCreativity of approachCreativity of approachMarketing researchers recommendations need Marketing researchers recommendations need to be more decision-orientedto be more decision-orientedMarketing researchers understanding of Marketing researchers understanding of problems of marketing decision-makersproblems of marketing decision-makers..

Major Recommendations

Leveraging technology for marketing Leveraging technology for marketing research;research;

Investment in developing in-house Investment in developing in-house research capabilities;research capabilities;

Building partnerships with external Building partnerships with external research suppliers;research suppliers;

Need for focused efforts to attract and Need for focused efforts to attract and retain people in MR;retain people in MR;

Major Recommendations (contd.)

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

THANK YOU