DESIGNING A MARKETING EXPERIMENT: REPORT

INTRODUCTION

This report aims to design a marketing experiment for a cereal category by Kellogg company. The
campaign is a new TV advertising campaign highlighting the benefits of “Fibre for body”. With
the growing intake of junk food among audience, the health issues are increasing due to poor
digestion thus it become important to eat fibrous food.

The experiment will be a before-after design experiment. We will not go for full factorial, as it will
be difficult to quantify impact if several parameters are simultaneously changed.

EXPERIMENT DESIGN

In this experiment, the independent variable which is new TV advertising campaign, whose impact
is observed over dependent variable i.e. sales.

The experiment will be run in Delhi, India. The control market observed will be Mumbai, India.
The test and the control market are so chosen that they resemble closely in terms of population
demographics and other city attributes. Delhi and Mumbai are similarly sized cities with a
population of around 1.9cr. Since the entire city will be exposed to the experiment, the sample size
would be big enough to be statistically relevant.

As it is before-after design experiment, sales will be recorded for both control and test markets for
a 3-month average from March-May. The experiment will be run for next 3 months from June to
august. The change in sales during the experiment will be then used to calculate the lift in sales.
From all the above procedure first three rules of causality are taken care of but experiment has no
control over fourth rule.

ANTICIPATED ISSUES

There is no issue with the month being selected as its not a seasonal product (its morning breakfast
category). Another impact will be due to strategies of competitive products or new entrants in
markets. The above-mentioned issues might have an adverse impact on sales.
EXPERIMENT 2.0

Another version of the experiment can be via magazine because it will be more specific target
market oriented, rather than pitching the product via TV advertising in every household. This
version will save cost of experiment.