Market Research Assignment

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University of Newcastle

Transcript of Market Research Assignment

  • 1. Proposal for Nike Dri-FITMarket Research Prepared for: Alison Dean June 14, 2009
  • 2. Table of ContentExecutive SummaryBackgroundProblem DefinitionResearch DesignFieldwork Data CollectionData AnalysisReportingTimingAppendices
  • 3. Executive SummaryThis proposal responds to your brief of June 15 2009 and describes:Business Objective: to change, reinvigorate or phase out the Dri-FIT range of productsResearch Objective: to assess if consumers are aware of the brand and the media communications. to assess if consumers are familiar with the technology and consider it important. to understand purchase interest across different price points and evaluate spend potential. to assess consumer preferences to designs, colours and materials. to evaluate in store distribution, visibility and availability.Our Recommended Approach: Store Audit: Visit stores to assess what are the barriers to purchase (poor visibility, limited availability and knowledge of sales staff) Qualitative: Conduct focus groups with user groups to explore reactions to the brand, the designs and media communication material. Quantitative: Conduct questionnaires outside stores to measure awareness of the brand and media communication material and to assess interest at current and alternative price points. Sample Composition: n=300 Questionnaire / n=8 Interviews with Store Managers / n=5 Focus Groups Timing: 10 weeks from project confirmation
  • 4. Background
  • 5. BackgroundNike was established in 1971 and is a global marketer of athletic footwear, apparel and equipment. Its swoosh logo andJust Do It slogan have motivated millions all over the world (Malhotra, 2007: 404-405).Consumers receive information from different media sources and make good use of it to collect product information oftheir preferred products (Schiffnan et al., 2005). Because consumer knowledge of products and competitive productsaffect the consumption decision-making process (Schiffnan et al., 2005), media can be considered the most effectivechannel to distribute product information (Ramaswamy, 2008). Consumers consumption behaviour is affected by theirbrand knowledge and personality (Kay, 2006: Schiffman et al., 2005), it is recommended that Nike Inc. understandconsumers by analyzing the relationship between consumer psychology and product characteristic (Schiffman et al.,2005).The market for sports apparel is becoming increasingly competitive. The model developed by Phil Knight (high valuebranded product manufactured at a low cost) is now commonly used and to an extent it is no longer a basis forsustainable competitive advantage. Competitors are developing alternative brands to take away Nikes market share.The Dri-FIT range has not been meeting projected sales targets in the Asia-Pacific region. We have been commissionedby the brand manager to conduct market research in Hong Kong, Shanghai and Sydney. We will measure all aspects ofthe marketing mix and provide valuable information to support the management decision to reinvigorate, change, orphase out the Dri-FIT range.
  • 6. Problem Definition
  • 7. Problem DefinitionResearch is the systematic collection and analysis of information which helps toimprove the quality of planning and decision making. It helps marketers to fullyunderstand what consumers want and can be used to explain and predictattitudes and behaviour of the population (Malhotra, 2007: 7-9).Nike Inc. is conducting market research to review the business case from theconsumers point of view. The research will be used to establish whether (1) theDri-FIT range is sufficiently market-focused (2) marketing plans and planningprocess are deficient and (3) brand building and communications are weak(Kotler, 2004: 20).
  • 8. Problem DefinitionThe objectives of this research study are: To assess if consumers are aware of the brand and its media communications. To assess if consumers are familiar with the technology and consider it important. To understand purchase interest across different price points and evaluate spend potential. To assess consumer preferences to designs, colours and materials. To evaluate in store distribution, visibility and availability.
  • 9. Our Research Methodologies Qualitative Quantitative In-depth understanding Quantify consumerof customer behaviour and attitude behaviour and attitude Focus Groups Questionnaire In-Depth Interviews
  • 10. Our ApproachWe recommend a three-phase approach: Store Audit and store manager interviews: Depth interviews are a direct way of obtaining information to illustrate a number of specific issues. Our store audit and interviews will be conducted on a one-on-one basis to uncover beliefs and attitudes about the brand and reveal any underlying or hidden information that we can test quantifiably with further research (Malhotra, 2007:158-162). Qualitative: Our focus groups will be conducted by a qualified research moderator and consist of eight (8) respondents. It will provide deeper understanding of why and how products are chosen and purchased (Malhotra, 2007:145-155). Quantitative: This research will measure consumer awareness, interest across current and different price points and reactions to media communications. Our well designed questionnaires are easy to complete and offer a direct comparability of responses. Questionnaires will be completed by consumers as they exit the store (Malhotra, 2007:187-189).
  • 11. Our ApproachThe research variables include: 3 different markets (Hong Kong, Sydney and Shanghai) 8 stores to be visited in each city Sex of respondents Age of respondents Various levels of brand awareness Understanding of technology Time of study conducted
  • 12. Our ApproachRationale:To link the consumer to you through the collection of data/information.In doing so you will be able to gain valuable insight into the consumer and defineopportunities or problems to support your management decisions. Using proven research methods we willexplore and measure all aspects of the marketing mix (Malhotra, 2007: 8-11). Product Price Promotion Place Is the price Are you connecting to Is the current range competitive? the most valuable Do you have good appealing? Are consumers users? visibility in store? Do you need to shopping around for a Are you Are you in the right introduce new better deal? communicating the store? designs? Can you compete? benefits clearly?
  • 13. Research Design
  • 14. Research Design Who, What, Where, When and Why? Our research design is the framework of our market research proposal. It defines the information needed to conduct the research and how we propose to obtain it (Malhotra, 2007: 78). Store Audit Qualitative Research Quantitative Research Barriers to Purchase Consumer Understanding Brand Test Understand core target consumer Measure awareness of the brand and groups interest in the brand, and Assess barriers to purchase the media communication material more importantly their perception / attitude towards it. Assess the styles available Measure consumer reaction to the brand and the media communication Understand the pre-defined coreAssess the knowledge of sales staff material target consumers life-style and attitude to fitness. Assess media communications Measure consumer int