Course: Marketing Research

Internal Assignment Applicable for June 2024 Examination

1. You are the marketing director of Alpha motors your organization wants to launch a range of EV’s. Your
company wants to conduct market research to establish customer needs and expectations prepare a
research plan. Mention TG, Priority markets, research hypotheses in the plan along with success
benchmarks for your research. (10 Marks)

Answer: Introduction
In the coming years, EVs will have a very important role in Smart cities, along with shared mobility, public transport,
etc. Therefore, more efforts to facilitate the charging process and to improve batteries are needed. The main
drawback of the EVs is their autonomy. However, researchers are working on improved battery technologies to
increase driving range and decrease charging time, weight, and cost. These factors will ultimately determine the
future of EVs.

Concept & Application

Market Research Plan for Launching Electric Vehicles (EVs) by Alpha Motors

1. Introduction: The purpose of this market research plan is to gather insights into customer needs and
expectations regarding electric vehicles (EVs) to inform the launch strategy for Alpha Motors.

2. Target Audience (TG): Before you start collecting data, you need to define who are the people you want to
reach with your EV design. You can use various criteria to segment your market, such as demographics,
psychographics, behavior, geography, or lifestyle. For example, you might want to focus on young urban
professionals who value convenience, performance, and sustainability. Or you might want to target families
who need spacious, safe, and affordable vehicles. Segmenting your market will help you narrow down your
research scope and tailor your questions to each group.Potential EV buyers across various demographics
including age, income levels, geographical locations, and psychographic characteristics. Current Alpha Motors
customers interested in EVs.Competitors' customers considering switching to EVs.

3. Priority Markets: There are many ways to gather information about your target segments, but the most
common ones are surveys, interviews, focus groups, and observations. Surveys are useful for collecting
quantitative data, such as how many people own or intend to buy an EV, what features they look for, or how much
they are willing to pay. Interviews and focus groups are useful for collecting qualitative data, such as why people
choose or avoid EVs, what emotions they associate with them, or what challenges they face. Observations are
useful for understanding how people use their vehicles in real-life situations, such as where they park, charge, or
drive. Identify priority markets based on factors such as existing infrastructure for EVs, government incentives,
consumer awareness, and market size.

• Example priority markets: urban areas with high population density, regions with robust charging
infrastructure, countries with favorable EV policies and incentives.
4. Research Objectives: Once you have collected your data, you need to organize, summarize, and make sense of
it. You can use various tools and techniques to do this, such as spreadsheets, charts, graphs, or software. The goal
is to identify patterns, trends, gaps, and insights that can guide your design process. For example, you might find
out that your target segments value convenience and performance, but they are concerned about the availability
and reliability of charging stations. Or you might discover that they prefer sleek and modern designs, but they also
want to customize their vehicles.Understand customer perceptions, attitudes, and motivations towards EV
adoption. Identify key features and specifications desired in EVs by target customers and Assess awareness and
perceptions of Alpha Motors as an EV manufacturer. Alpha motors should evaluate preferences for pricing,
financing options, and after-sales services related to EVs and determine the most effective marketing channels and
messaging to reach and engage potential EV buyers.

5. Research Methodology: Based on your data analysis and interpretation, you can start generating ideas for your
EV design. You can use methods such as brainstorming, sketching, prototyping, or modeling to explore different
possibilities and solutions. You can also use feedback loops to test and refine your ideas with your target
segments. You can ask them to evaluate your design concepts, features, or prototypes, and collect their opinions,
suggestions, or complaints. You can also observe how they interact with your design and measure their
satisfaction, engagement, or loyalty. Alpha motors should conduct a combination of qualitative and quantitative
research methods:

• Focus groups: Gather in-depth insights into consumer attitudes, preferences, and perceptions towards EVs.

• Surveys: Administer online surveys to a representative sample of potential EV buyers to gather quantitative
data on preferences and purchase intentions.

• Interviews: Conduct interviews with industry experts, EV enthusiasts, and current EV owners to gain insights
into trends and emerging preferences.

• Social media listening: Monitor online conversations and discussions related to EVs to uncover sentiment
and emerging themes.

6. Research Hypotheses:

• H1: There is a growing demand for EVs among environmentally conscious consumers.

• H2: Range anxiety and charging infrastructure are significant barriers to EV adoption.

• H3: Affordability and total cost of ownership are key drivers influencing EV purchase decisions.

• H4: Brand reputation and reliability are critical factors influencing consumers' choice of EV manufacturer.

• H5: Effective marketing communication highlighting EV benefits and addressing consumer concerns can
increase purchase intent.

7. Success Benchmarks:

• Achievement of a minimum sample size for each research method to ensure statistical validity.

• High levels of engagement and participation in focus groups and surveys.

• Consistent themes and patterns emerging from qualitative data analysis.

• Positive sentiment and favorable perceptions towards Alpha Motors' EV offerings compared to competitors.

• Actionable insights and recommendations derived from research findings to inform the EV launch strategy.
8. Timeline:

• Research activities to be conducted over a period of X weeks/months.

• Analysis and reporting of findings to be completed within X weeks/months of data collection.

9. Budget:

• Allocate sufficient resources for recruiting participants, data collection, analysis, and reporting.

• Consider costs associated with hiring external research agencies or consultants if necessary.

10. Action Plan: The final step is to communicate and present your results to your stakeholders, such as clients,
managers, or investors. You need to show them how your market research informed your design decisions, and
how your design meets the needs and expectations of your target segments. You can use methods such as reports,
presentations, or portfolios to showcase your data, insights, and ideas. You can also use storytelling, visuals, or
demonstrations to make your results more compelling and persuasive. Alpha motors should develop an action
plan based on research findings to inform product development, marketing strategy, pricing, and distribution
channels for Alpha Motors' EVs.

Conclusion

This market research plan will provide valuable insights into customer needs and expectations, enabling Alpha
Motors to develop and launch EVs that resonate with target customers and gain a competitive edge in the rapidly
evolving electric vehicle market.

2. “Understanding TG is critical for marketing success” Prove or disprove this hypothesis by applying the 4
P’s of marketing for the company Alpha motors mentioned in question no 1. (10 Marks)

Answer: Introduction

Designing a product is not successful without understanding the consumers need and putting the product in
the right place in the consumer’s mind. Now global climate is changed due to global warming. Vehicle’s
owners focus on spending less on fueling their cars and also protect the environment for these reason. It is
important to differentiate your product to ensure continuous growth. This approach will enable consumers
to differentiate their products from those of their competitors. This approach will convince consumers to
save on their expenses, as well as ensure a clean and healthy environment. People start to think to
purchase eco-Friendly vehicles

Concept & Application

Market Research Plan for Launching Electric Vehicles (EVs) by Alpha Motors
The 4Ps of Marketing Mix are -

1. Product – The products Electric Car is making or are in the pipeline to capture potential markets.
Market research and customer research is done to identify the needs of the customers that Electric Car
can cater to with its present and acquired resources.
Design and Testing – Product is designed based on the value proposition that customers are seeking and
one that Electric Car can deliver. The key consideration regarding product design and testing are –
customer value proposition, regulatory requirements, Electric Car skills and resources, opportunities for
differentiated positioning, and profitability.

Electric Car Product Launch – It includes decision regarding pricing, communication strategy, distribution
channel management, and building infrastructure to provide post purchase services.

Product Life Cycle Management of Electric Car products – Once the product is launched the company
needs to manage the life cycle of the product through its various stages such as – introduction, growth
phase, cash cow stage, and finally decline stage.

2. Price – Pricing strategy that Electric Car is pursuing in various customer segments it is operating in.
Pricing is a highly complex activity and we will cover only a very limited aspect of what goes into pricing
decisions. To a large extend pricing depends upon the other 3Ps of marketing – product, place and
promotion. Conceptually perceived value is the maximum price a customer is willing to pay for Electric Car
product in the given competitive context.
Cost Base Pricing
Under cost based pricing strategy – Electric Car can work out what it takes to produce the product and
put a markup based on profit it wants earn. In a highly competitive strategy with dynamic pricing the
strategy may not be feasible. For example Uber running losses in billions can provide lower prices and
sustain compare to individual taxi service provider who is not backed by private equity and long term
strategy.

Value Base Pricing

Value Base Pricing is a pricing strategy which is based on customer perception of value. It inculcates put
the number on both tangible and intangible benefits with a clear understanding of elasticity of demand
and competitive pressures.

Market Penetration Pricing

Electric Car can employ this pricing strategy where it launch a new product either at loss or at very low
margin to get a foothold in the segment.

Market Skimming Pricing

For certain well established brands, Electric Car can increase the prices as customers can pay higher price.
Good Value Pricing
Offering right mix of product features, quality, and service combination at fair price. For example offering
a limited frill option - customers can have initial product experience at an accessible price. GoPro use this
strategy extensively.

Competition Based Pricing

The pricing strategy is based on the competition in the market. Under this strategy Electric Car focus is to
match the prices of the competitors and focus on reducing the cost of operations to increase profitability.

3. Place (Channels of Distribution ) – Distribution mix of Electric Car has taken a new dimension with the
emergence of Online Retailing & domination of players such as Amazon. Place or Distribution Channel is a
set of processes through which Electric Car delivers its products to the customers. Distribution &
Marketing channels fulfill various purposes such as – providing product quality assurance, providing
customers information about the products , easy availability of the products to end consumers , providing
extensive product assortment using product line – breadth, length, and depth, reducing purchase lot size
thus enabling opportunities for individual customers to buy products, after sales services and installation
services, enabling product customization options at the point of sales,and logistics.

Designing Channels of Distribution for Electric Car

There are two major Channel of Distribution related decision criteria –

1. Channel Design
Electric Car needs to choose whether it wants to implement a distribution system which is – Direct,
Indirect, or Both. The channel design decision involves - understanding of customer value proposition,
current customer convenience points, length breadth and depth of Electric Car product line, and
competitors’ distribution systems.

Direct Distribution System – Electric Car putting its own direct distribution channel and reach directly to
the customers. It can be through opening its own stores or just selling all the products online.

Indirect Distribution System – Electric Car including channel partners such as wholesalers, retailers,
logistics companies, and distribution agents.

Hybrid Distribution System – Electric Car should implement a hybrid model where the critical aspect of
distribution system are managed by Electric Car, and secondary functions such as logistics, warehousing,
store management etc are delegated to various channel partners.

2. Channel Management
Channel management is about managing various power centers within the delivery system and managing
them based on bargaining power of each player in the value chain. The channel management from
marketing perspective can be done considering three critical aspects –
 Customer Willingness to Search & Travel to Purchase Good – If the customer willingness is high then
company has a strong brand awareness and brand loyalty. Electric Car can design favorable channel
policies vis a vis channel partners.

Market Development Requirement – One of the most prominent functions of channel is market
development. If Electric Car needs higher market development efforts then it is sensible to include
channel partners who have know how and skills to expand into new markets.

Per Unit Cost of Stocking – If the cost is high then Electric Car needs channel partners which can pool in
resources. Otherwise Electric Car can do the operations on its own.

4. Promotion (Communication Strategy of Electric Car) – The emergence of social media and online
advertising has changed the landscape of Electric Car communication mix and communication strategy.
Promotion Mix or Integrated Marketing Communication strategy is a mix of various promotion tools that
are at disposal of Electric Car. They are – Advertising, Sales Promotion, Personal Selling, Public Relations,
and Direct Marketing.

Electric Car can use all these five communication tools to persuasively communicate to customer –
existence of the product, price of the product, differentiating features of the product, places where people
can buy the products, and finally how consumers can effectively use the products or services.

Conclusion
This market research plan will provide valuable insights into customer needs and expectations, enabling
Alpha Motors to develop and launch EVs that resonate with target customers and gain a competitive edge
in the rapidly evolving electric vehicle market.

3. Your company is planning to launch a new range of soaps targeted to the Indian family. The category is
cluttered with many similar products in such a scenario:

a. Define the TG and markets you shall target give justifications for your selection, why do you think target
grouping is so important in market research. How will you target consumers differentiate your product
with competition? (5 Marks)

Answer : Introduction

Target Group (TG) and Market Selection:

1. Target Group (TG):

• Indian Families: This includes individuals from various age groups, income levels, and backgrounds who

are responsible for household purchasing decisions.

• Justification: Indian families represent a large and diverse consumer segment with significant

purchasing power. They are the primary buyers of household products like soaps, making them a strategic

target for our new range of soaps.

2. Market Selection:

• Urban and Semi-Urban Areas: Focus on metropolitan cities, tier 1, and tier 2 towns where the demand

for branded soaps is high and consumer preferences are influenced by factors such as brand image, quality,

and fragrance.

• Justification: Urban and semi-urban areas have higher disposable incomes and greater exposure to

advertising and marketing efforts. These regions also have better distribution networks and access to modern

retail outlets, making it easier to reach and engage with our target audience.

Importance of Target Grouping in Market Research:

• Target grouping is crucial in market research because it helps in:

1. Understanding Customer Needs: By identifying specific demographic or psychographic segments,

companies can gain deeper insights into the unique needs, preferences, and behaviors of their target

audience.

2. Effective Communication: Target grouping allows companies to tailor their marketing messages and

strategies to resonate with specific audience segments, leading to more impactful and relevant

communication.

3. Resource Allocation: By focusing resources on high-potential customer segments, companies can

optimize their marketing budgets and maximize returns on investment.

4. Product Differentiation: Target grouping enables companies to identify gaps or unmet needs within

specific segments, allowing them to develop differentiated products and offerings that cater to those needs.

Product Differentiation Strategy:

• To differentiate our new range of soaps from competitors, we can focus on the following strategies:
 1. Unique Formulations: Develop soaps with innovative formulations that offer additional benefits such as

moisturization, skin brightening, or germ protection.

2. Natural Ingredients: Emphasize the use of natural and organic ingredients in our soaps, catering to the

growing consumer demand for eco-friendly and skin-friendly products.

3. Distinct Fragrances: Offer a wide range of fragrances that evoke different emotions and appeal to

diverse consumer preferences, setting our soaps apart from competitors.

4. Packaging and Design: Design attractive and distinctive packaging that stands out on the shelves and

communicates the brand's positioning and value proposition effectively.

5. Marketing and Branding: Implement targeted marketing campaigns that highlight the unique features

and benefits of our soaps, leveraging channels such as television, digital media, and influencer marketing to

reach our target audience effectively.

Conclusion
By targeting specific consumer segments and implementing differentiation strategies, we can effectively
position our new range of soaps in the market and gain a competitive edge in the cluttered soap category.

b. Create a 10 question questionnaire to conduct primary research in the target consumers, which sampling
techniques would you use? Justify your reasons. (5 Marks)
Answer: Questionnaire for Primary Research on Soap Preferences among Indian Families:

1. What factors influence your choice of soap for your family? (Select all that apply) a) Price b) Brand
reputation c) Ingredients d) Fragrance e) Skin type suitability f) Others (please specify)

2. How often do you purchase soap for your household? a) Daily b) Weekly c) Monthly d) Occasionally e)
Rarely

3. Which type of soap do you prefer for daily use? a) Bar soap b) Liquid soap c) Both

4. What fragrance do you prefer in your soap? a) Floral b) Fruity c) Herbal d) Citrus e) Other (please specify)

5. Are you willing to pay a premium for soap with natural ingredients? a) Yes b) No c) Maybe

6. What additional features do you look for in a soap? (Select all that apply) a) Moisturizing properties b)
Antibacterial/germ protection c) Skin brightening d) Exfoliating properties e) Others (please specify)

7. How important is brand reputation when purchasing soap for your family? a) Very important b) Somewhat
important c) Not important

8. Where do you usually purchase soap for your household? a) Supermarkets/hypermarkets b) Convenience
stores c) Online platforms d) Specialty stores e) Others (please specify)
9. How likely are you to try a new soap brand based on recommendations from friends or family? a) Very likely
b) Somewhat likely c) Not likely

10. What improvements would you like to see in the soap products available in the market?

Sampling Techniques:

For this primary research, I would recommend using a combination of convenience sampling and stratified
sampling techniques.

1. Convenience Sampling:

• Convenience sampling involves selecting respondents who are readily available and accessible for data
collection.

• Given the widespread availability of our target audience (Indian families), convenience sampling would be
practical and cost-effective for reaching a diverse group of respondents.

• This method allows for quick data collection and can provide valuable insights into consumer preferences
within a short period.

2. Stratified Sampling:

• Stratified sampling involves dividing the target population into homogeneous subgroups (strata) based on
relevant characteristics, such as demographics or geographic location.

• In this case, we can stratify the sample based on factors such as age, income level, geographic region, and
household size to ensure representation from diverse segments of Indian families.

• This approach helps in obtaining a more accurate and representative sample, allowing for meaningful
comparisons and analysis across different demographic groups.

Conclusion

By employing a combination of convenience sampling and stratified sampling techniques, we can gather
comprehensive data on soap preferences among Indian families while ensuring representation from various
demographic segments. This will enhance the reliability and validity of our research findings and enable us to
make informed decisions regarding product development and marketing strategies.