Quantitative Market Research Project
Table of Content
Executive summary ……………………………………………………………….3
Management Decision Problem …………………………………………………..3
Market Research Problem…………………………………………………………4
Research Approach in Market Research…………………………………………..5
Theoretical Research Model……………………………………………………….7
Market Research Model……………………………………………………………8
Market Research Process ………………………………………………………….9
Executive Summary
Marketing research is a very vital activity carried out in organizations. Metropolitan limited is a company established in the year 2000. The company produces chocolate-coated biscuits, and since the establishment, the company has been making huge profits. Due to these favorable conditions, Metropolitan Limited grew and expanded in various states creating employment for thousands of people. However, the sales began to decline in 2017; thus, the management at Metropolitan limited saw the need to conduct market research. The management at Metropolitan limited finds market research vital as it provides enough market information for survival in the market.
The purpose of the research was to study the roles of competition from local and global companies on a reduction of demand. For the research to be successful, the Management Decision Problem was determined, addressing the possible research problem using appropriate research approaches. Comprehensive research was conducted and illustrated. A managerial report was compiled, including the quantitative analysis of the business. The report also gives information on the management and the marketing strategies put in place by the administration. Data was collected from the research, prepared for analysis using statistical techniques followed by an interpretation of the output. Recommendations for the research problem are also given.
The Management Decision Problem
Marketing research was conducted by executive management at the Metropolitan limited company. Since the main issue was on demand reduction, the sales and marketing department played the most significant role in the research. The research was aimed at addressing a Management Decision Problem that had been bothering the company for some time. The sudden decline in sales was considered the main problem. Since its establishment, the company has had successful years and only began to experience huge losses seven years later.
In this regard, the management decided to conduct marketing research to gather the information that would help find a solution to the identified problem. The MDP leading this study was to investigate the external factors contributing to the decline in the number of clients served by the company. As a profit-making entity, Metropolitan Limited did not take it kindly when their profitability began to decline. Because of this, the sales and marketing personnel were mobilized to conduct market research. Through this, first hand adequate and reliable data would be generated for usage in providing a solution to the identified MDP.
Research Problem
An issue addressed through research is a research problem. Any research activity must have a reason which, in most cases, is a problem. Without question, it is a waste of time to engage in research, since no beneficial impacts and outcomes can be attained. The sales and marketing department dedicated their time and resources to solving the problem since it was urgent. The research problem was summarized in the following sections;
- What are the effects of income on the change in demand for the company’s products?
- What are the contributions of the consumer tastes on the change in demand for the company’s products?
- What are the impacts of competition on the change in demand for the company’s products?
Research Approach Used in the Market Research
Market research is an activity performed for a purpose. All the business organizations aspire for success. However, success is not always guaranteed since the market has many challenges that hinder these organizations from attaining the set goals. One way of addressing such problems is through market research. This is what the sales and marketing department sought to do.
For the success of the research, it should employ the use of appropriate research approaches. After identifying and defining MDP and the research problem, the next plan was to prepare for data collection. Data is gathered from the target population, or sample size decided upon by the research team. Data collection should be done in line with the right approach chosen. The research approach differs depending on various factors. Some of the main strategies used in market research include an interview, survey, focus group, field trial, and observation.
In this case, the team chose the use of personal interviews as the best approach. An interview is a data collection approach in which the researcher engages in one questioning with the respondents. It is the best approach for research since it has many advantages. First, it is an individualized process that helps in data collection from individual respondents. With this procedure, it is possible to get reliable information from different people hence getting the right picture of what happens in the market. Besides, the interview enables the team to collect comprehensive data adequate and detailed enough to provide answers to the research problem. Additionally, the conversation can be used in collecting unbiased data, especially if the chosen sample size is from an accountable and transparent manner. However, the right procedure must be followed for an effective interview.
After identifying the target population, the research team selects a small but proportional size to use in the study. The sample respondent should be chosen through the use of an appropriate sampling procedure. Once this is done, the team approaches the individual respondents informing them of the planned study. At the same time, the respondent is requested to participate in the research process by creating time to participate in a short interview session. During this time, the researchers assure the respondents of the ethical compliance of the research, its credibility, and the integrity of the planned research—afterward, the researcher’s schedules for a short interview session at a convenient time and place. The scheduling of the interview is agreed upon so as not to inconvenience the respondents’ commitment.
Market Research
Market Research is the act of collecting information based on consumer preferences and needs. Since the target market is mostly children and a few adults, individual interviews and observation were used. Simple questions were drafted to aid in this exercise,
- What is the best flavor of the available varieties?
- What changes would you like made in the specific favorite snack?
- Compared to other brands, would you still choose the specific snack? What characteristic makes it stand out?
- Is the snack readily available at the outlet near you?
- Is the snack affordable?
Precise and straightforward questions were drafted to help in getting accurate and direct answers.
Theoretical Research Model
In the industry, the research problem under study is the development and identification of market opportunities, and such opportunities include the available market gaps that need to be identified. The term project and the prospects of loss and profit of the business necessitate the research model development. In this model, the goal is to identify the gaps in both local and international markets. The term project and the prospects of loss and profit of the business necessitate the research model development. In the specific model, the goal is to identify the gaps in the market.
Some of the assumptions made were that not enough marketing was done to keep up with other competitors. Also, the packaging was boring and old hence the reduced demand. The fundamental concepts in the identification of such ideas are the formulation of an overseeing group of personnel that will chair and steer the committee that will be geared towards advancing the marketing strategies of the business—for instance, the identification of online customer feedback that will facilitate the smooth flow of information. The social media being the widely used online platforms, customers are free to air their questions, concerns, and suggestions.
Furthermore, the objective was also encompassing the increase in customer loyalty and satisfaction. According to the data provided, the research will lead to a 20% increase in the net profit, which will be a result of a 12% increase in the customer’s trust. This theory will be used as bases for evaluation of the functioning of the business. Furthermore, it will help identify the challenges affecting both the company and the potential customers. This step will lead to the identification of a better and elaborate plan to focus on the achievement of the business goals and objectives. Therefore, the business managerial report will provide the necessary and useful information that will act as a basis for the evaluation of the business performance.
Marketing Research Model
In the making of marketing research models, an appropriate model is the McKinsey 7s model, which is mostly centered on the quantitative analysis of the general performance of the business. The 7s marketing research model is a quantitative marketing research analysis model that forms a useful framework for the development and analysis of the performance of the evaluation of a firm through the assessment of the strategic planning of the structure, systems, and skills in the market band management in the entire organization. The quantitative analysis model of the 7s devised by McKinsey has several implications in the business development: The model has its elements standing for structure strategy, systems, style skills, staff, and the last stands for the shared values.
Structure
Deals with the way an organization is established. The design handles the quantitative competencies together with the division of the workforce in the business. The structure has to do with how the business organization is centrally managed. Moreover, how administrative tasks are carried out.
Strategies
The strategies refer to the outlined measures that will help the business organization achieve the set goals and objectives. Therefore, the firm should establish the best means in which the fixed target markets and the quantitative research mechanisms can be made. The strategies should be able to accommodate all the long and short term objectives of the business.
Systems
this type refers to how organizational activities are operated and run. The procedures in which the administrative skills are done are an essential element in considerations of communication streams and methods.
Style
The style in this model refers to the quantitative analysis of how the whole business organization executes its veto powers. This style analyses whether the firm demonstrates good or bad leadership skills and their effects on business development.
Market Research Process
Identification
The objectives and problems are identified and help in the formulation of the hypothesis. This acts as a foundation upon which marketing research is done. In this case, the low demand and decreased sales are the main problems.
Development
Here, the identification of how the study should be done is identified. The analysis is carried out directly through interaction, physically and online. The determination of the research problem leads to the provision of the subject content.
Preparation
Methods to be used in data collection are identified as instruction gathered. This process makes the researcher aware of the occurrence of the market research process. Personnel at the sales and marketing are grouped into fours to help carry out the exercise
Data Collection
As observed earlier, questionnaires are the best method for data collection. Surveys with the questions illustrated before are distributed among the target groups. Questions are simple and not leading.
Data Analysis
The collected data is analyzed to determine the distribution in the information provided. This is the most crucial process. The measures of central tendency are identified. Specifications of whether the target objective is met or not are determined. A decision on whether to accept or reject the thesis will be known. Target groups are allowed to fill the questionnaires which are brought back for analysis by the various teams.
Data Preparation and Illustration
Fig 1. Graphical representation of Data
The questionnaires were filled and illustrated graphically. A scale of 1-10 was used to test for various aspects in the chocolate-coated biscuit as compared to similar products from different competing companies, with one being the least favorable.
Data Interpretation
Compared to other brands, the metropolitan brands were highly preferred due to taste and flavor. However, their availability and cost were a turn off to the consumers.
Conclusion and Recommendations
For a business to be successful, extensive market research ought to be done. Following the laid processes and methods, the team carrying out research should be keen on details to ensure the accuracy of results. Findings from a study as essential to the survival of a company in the competitive world. Therefore it is critical to consider small details.
The management team recommended that the product be made readily available to customers. This will be made possible by increasing the production and supply team. Another recommendation was on price reduction. The competing brands offer lower quality at a lower price, causing unfair competition. However, the sales team suggested that there be a reduction in packaging size and consequent price reduction. Also, proper marketing needed to be done to ensure the brand maintains its customers.