Marketing Research in Product

DevelopmentPresented By:

Ankit Sharma – Aanchal PuriArshi Singh – Kiran Johal

Sharal Norden

What is MR ?

Why is it Important?

What is a GOOD Product ?

#1 Case: Tata Nano

The Tata Nano

A Dream is Born

Family commuting on Scooters Can’t Afford Cars No Safe, Affordable All-Weather for of Car

A Vision to Build the World’s Cheapest Cars Give a new definition to “low-cost”

Idea Generation

A Scooter with 2 extra wheels at the back for security ?

An Auto rickshaw with 4-wheels? A Three wheeled car like an Auto Rickshaw? A 4-wheeled car made of engineering plastic? A 4-wheeled Rural Car? Rolled up plastic curtains in place of windows ? Openings like Auto Rickshaw from the side? A 4-wheeled open car with safety side bars?

Idea Screening

But market needed a Peoples Car..

Car or Auto Rickshaw ??

Idea Screening

Concept Testing and Development

Mr. Garish Wagh, Leader of Tata Engineering Team

Did something nobody at TM ever did.

Talked to its customers !

WHY. WHY. WHY??? They insisted on a Cheap, dependable truck.

Final Answer: Better Marriage Prospects in the Village

Concept Testing and Development

Should be built on different platform than the conventional ones

Must meet all safety and regulatory requirements.

It has to be built on scale which should be more than double the earlier launches and ramp up must be smooth

Should be Exportable to other countries Should be a Beacon for the Indian Automobile

Industry

What type of product should be developed?

Tata Nano

Test Drives and Feedbacks

Finally, Nano was Commericalized

Test Marketing and Commercialization

#2 Case: Apple

Initially claimed that Apple indulges in NO MARKET RESEARCH

Consumers don’t know what they want

Which Reveals That:

What is driving our customers to buy Apple’s iphone products v/s other products such as Android products of Samsung?

What features they most use? Customer Demographics Level of satisfaction with different aspects of

iPhone

1. Apple Surveys iPhone buyers

Apple – Samsung War

Why People bought iPhone over a Samsung?

TRUST APPLE BRAND – emerged as first and second most popular reasons in most regions (eg. US and China)

67% people said – Physical Appearance and Design (Japan, UK, Germany, France, South Korea)

47% - Greater availability of Apps (South Korea)

Research All over the Globe

One of the Most Elegant, Innovative Companies

#3: Case – Our Very Favorite

How Maggi Develops its Products

The Maggi brand experienced a decline in sales in the UK leading up to 2004.

What Happened?

Product had come to be seen as uninteresting and old fashioned due to its dehydrated format and flavour.

It failed to meet users' increasing requirements for fresh tasting culinary aids.

Source: http://businesscasestudies.co.uk/nestle/nutrition-health-wellness-new-product-development-at-nestle/market-research.html#ixzz28OFyGGjH

Problem ?

Maggi commissioned face-to-face qualitative research to get a deeper insight into chef and consumer views.

Chefs were asked to discuss their requirements.

Market Research

Results

The results showed that consumers believed 'fresh is best‘.

However, the chefs' view was slightly different in terms of:

'My customers would like everything to be made from scratch (i.e. made from basic raw ingredients), but I don't have the time and money to do this'.

The research revealed that the market was divided into a number of segments.

A segment is a part of an overall market made up of customers with similar characteristics.

Results: Chef opinion

Chefs fitted into four main segments

The research showed a sizeable demand for Segment 3 - a target for Maggi 'A Natural Choice' products.

Brand proposition - the research defined a proposition for developing the new brand.

This new proposition was to create a product with more natural qualities for 'chefs who aim to please' who want their cooking to be as fresh tasting as possible.

Natural qualities would be defined in terms of taste, smell, look and texture.

Target market-- Maggi 'A Natural Choice' target was to be 'chefs who aim to please'.

Outcome

Their prime aim is to provide delicious, wholesome foods that customers enjoy.

These chefs enjoy their work and have a pride in the satisfaction they give customers. They are not in business just to make money.

Brand ambition - Maggi 'A Natural Choice' combines the goodness and taste of real ingredients with time and cost saving.

Outcome

#4: Case - Levi’s Curve ID

Recently launched new line of custom fit jeans, made to fit the curve of women’s body.

The new line, Levi’s® Curve ID, utilizes a revolutionary fit system based on shape, not size and was created as a result of studying more than 60,000 body scans and listening to women around the world of all shapes and sizes.

Market Research

Through this research, Levi’s® designers created a new approach to measuring a woman’s body and identified three distinct body types that account for 80 percent of women’s shapes universally.

The three Levi’s® Curve ID fits are based on these universal body types.

3 Distinct Body Types

More than half of women (54 percent) try on at least 10 pairs of jeans to find one pair they would buy.

Most women (87 percent) wish they could find jeans that fit better than the ones they own.

Most women (67 percent) believe that jeans are designed for women with “ideal” figures.

Very few women (28 percent) believe that jeans are designed to fit their bodies.

Findings of a Global Survey

#5: Case – Coca Cola GB

Coca-Cola GB carries out extensive market research to identify consumer wants in every segment of category in which it operates.

Coca Cola GB

Market research analysis of the demographics of consumers in Great Britain revealed a growth in smaller households.

The appropriate product response was to produce 1.25 litre share-size bottles.

Bottle Sizes

Market research into where specific products are consumed influences the design of pack types

For e.g. a 2 litre bottle for family consumption at home and a smaller 500ml bottle for consumption 'on the move'.

Design

A study of occasions when people drink sports drinks showed the importance of making it available in leisure centres.

Other research showed that the famous original Coca-Cola glass bottle is best targeted at restaurants and special party occasions.

Occasions

1 •Identify Opportunities

2 •Explore Solutions

3 •Measure Suitability and Effectiveness

4 •Test Market

5 •Track Market Performance

Coca Colas Research Process: 5 Stages

Some products that it has developed

Coca Cola Vanilla

Coca-Cola Vanilla had a successful launch in the USA

So it was decided to test its potential in Great Britain.

Fanta Icy Lemon

The development of this new flavour stemmed from listening directly to consumers who called the Company's care line to enquire about the availability of a lemon Fanta based on their experience on holidays abroad.

Coca Cola Share Size 1.25 lt

Desk research - growth in the number of smaller households & a change in the way we shop.

The research identified a need for a bottle size that was ideal for top-up shoppers or 1-2 person households to share over dinner.

Powerade

Desk research identified an opportunity for a new brand within the sports drink segment.

Research was used to identify target consumers and desirable product positioning.

That’s All We have Here !