Proctor and Gamble Market Research

project/reportP2,M1,D1

P2 explain how different market research methods have been (could be used) to make a marketing decision within a selected situation or business

M1 explain, with examples, how different market research methods are appropriate to assist different marketing situations

D1 evaluate the market research method used by a selected organisation.

Produce a report to go to the director of marketing that details how Procter and Gamble are using market research to make marketing decisions

1) Provide an introduction to the company you are going to be referring to for this report – including the products and services they provide and who their target markets are

2) Choose a company and explain how they have used market research to make decisions relating to a part or whole of the marketing mix

3) Explain why they were used and how they were appropriate for finding out the information required to help with the development of the marketing mix

4) Using the information you have gathered for P2 and M1, choose one form of research and evaluate how appropriate the method research of was

Task 2

Rebranding of Oil of Ulay to a younger market and launching ‘Olay’ – was an aging and failing brand – concerns it would die with its users -redeveloped for younger target market through interviews and product testing

Olay – developed a soap with the aim to be a competitor for Dove, very successful in early stages and product development but failed at branding stage as the Olay brand too strongly associated with the female market

Pampers – feedback from research on nappies led to them developing disposable changing mats and wipes

Febreeze – came from consumers feedback that they wanted something not to ‘disguise’ smells but to ‘eat’ them ie make them disappear

Key examples

Sample – the people who are chosen to take part in market research

Qualitative, quantitative, primary, secondary – types of research used

Monadic (on its own) / parallel (with one or more other products) – the ways in which product testing is conducted

Brand fit – is the brand appropriate for the intended audiendce

Key terms to use

Use primary research as the main source for product development, price and branding decisions. Prefer qualitative rather than quantitative

Product testing Monadic – will ask the sample to test a product for a short while

(linked to them getting proper use – a week for toothpaste for example) and answer questions relating to their experience

Parallel – testing alongside another product – sometimes a competitor

Blind testing is usually used in these cases so that there are no preconceptions to taint the feedback

Primary methods used

Product is tested for a length of time dependent on usage cycle of the product

A questionnaire is given with questions such as do you like the colour/smell/taste/price to pay/purchase intent/brand fit

A sample of these are invited in to be interviewed and join a focus group to analyse the results

A test market will then be conducted if the product

What happens during ‘blind’ product testing

Secondary research used for decisions related to ‘generic’ statistics such as who lives in a specific area if doing a mini launch of a product

Using ‘Nielson’ data to find out how many people watch Coronation Street on a Wednesday for example http://www.nielsen.com/uk/en

Supermarket data – analysing buyer behaviour when purchasing products to assess ideal product positioning

Secondary research used by P&G

1. Opportunity identification2. Need identification3. Concept and product identification4. Branded product/concept/fit/appeal5. Market testing

From Product development to launch/Market Research cycle

Main research is qualitative – one to one interviews, focus groups, blind product testing

Qualitative research is used at every stage of a products development

Quantitative research will be used once a concept has been developed ‘eg would you buy this product yes or no’

A follow up using qualitative research of the previous sample will be used again to find out ‘why’ people would or wouldn’t buy – analysis

Tested in a small geographical area where tv etc can be isolated so advertisements are only shown there and products are only sold there

‘fail cheap’ – is P&G motto with regards to research – whatever has been spent previously on research will still be less than what has been spent on the launch of a new product

Less than 5% of product ideas and concepts make it to be launched

Proud (and secretive) of how well their market research is conducted so mainly do it internally – they have well trained professionals and do not pay research companies to do it on their behalf

Why is market research used so extensively for P&G?

Why are certain types of research used to assist

marketing situations at P&G? Justify them

Product Promotion

PlacePrice

Deciding when to advertise

Product placement

New productsProduct redevelopment

Where to sellDeciding at which price to sell a ‘new product’

Some brands are hard to disguise for blind testing eg aquafresh has a very distinct product with the blue red and white stripes

It is hard to get good qualitative feedback on certain products that are deemed embarrassing or for very personal use Dentures, sanitary products

When is research difficult?

Can the amount of time and money spent on marketing research be justified? How?

Qualitative research is P&G’s preferred method – is this appropriate for the type of company they are?

Is there any way ‘difficult’ types of research could be overcome? How? Why?

They only research internally – is this the only way? Why/Why not?

For D1 look back on your report so far and consider