Post on 09-Dec-2015
description
Proposal for
Nike Dri-FITMarket Research
Prepared for: Alison Dean
June 14, 2009
Table of Content
Executive Summary
Background Problem
Definition Research
Design Fieldwork Data
Collection Data Analysis
Reporting
Timing
Appendices
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 products
Research 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
Background
Background
Nike was established in 1971 and is a global marketer of athletic footwear, apparel and equipment. It’s swoosh logo and
‘Just 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 of
their preferred products (Schiffnan et al., 2005). Because consumer knowledge of products and competitive products
affect the consumption decision-making process (Schiffnan et al., 2005), media can be considered the most effective
channel to distribute product information (Ramaswamy, 2008). Consumers’ consumption behaviour is affected by their
brand knowledge and personality (Kay, 2006: Schiffman et al., 2005), it is recommended that Nike Inc. understand
consumers 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 value
branded product manufactured at a low cost) is now commonly used and to an extent it is no longer a basis for
sustainable competitive advantage. Competitors are developing alternative brands to take away Nike's market share.
The Dri-FIT range has not been meeting projected sales targets in the Asia-Pacific region. We have been commissioned
by the brand manager to conduct market research in Hong Kong, Shanghai and Sydney. We will measure all aspects of
the marketing mix and provide valuable information to support the management decision to reinvigorate, change, or
phase out the Dri-FIT range.
Problem Definition
Problem Definition
Research is the systematic collection and analysis of information which helps to
improve the quality of planning and decision making. It helps marketers to fully
understand what consumers want and can be used to explain and predict
attitudes and behaviour of the population (Malhotra, 2007: 7-9).
Nike Inc. is conducting market research to review the business case from the
consumers’ point of view. The research will be used to establish whether (1) the
Dri-FIT range is sufficiently market-focused (2) marketing plans and planning
process are deficient and (3) brand building and communications are weak
(Kotler, 2004: 20).
Problem Definition
The 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.
Our Research Methodologies
Qualitative Quantitative
In-depth understandingof customer behaviour and attitude
Focus GroupsIn-Depth Interviews
Quantify consumer behaviour and attitude
Questionnaire
Our Approach
We 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).
Our Approach
The 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
Our Approach
Rationale:
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 define
opportunities or problems to support your management decisions. Using proven research methods we
will explore and measure all aspects of the marketing mix (Malhotra, 2007: 8-11).
Product Price Promotion Place
Is the current range
appealing?
Do you need to
introduce new
designs?
Is the price
competitive?
Are consumers
shopping around for a
better deal?
Can you compete?
Are you connecting to
the most valuable
users?
Are you
communicating the
benefits clearly?
Do you have good
visibility in store?
Are you in the right
store?
Research Design
Research DesignWho, 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 AuditBarriers to Purchase
Qualitative ResearchConsumer Understanding
Quantitative ResearchBrand Test
Assess barriers to purchase
Assess the styles available Assess
the knowledge of sales staff Assess
media communications
Understand core target consumer
groups’ interest in the brand, and
more importantly their perception /
attitude towards it.
Understand the pre-defined core
target consumer’s life-style and
attitude to fitness.
Understand the triggers that lead to
purchase
Measure awareness of the brand and
the media communication material
Measure consumer reaction to the
brand and the media communication
material
Measure consumer interest at current
and different price points
Store AuditBarriers to Purchase
Qualitative ResearchConsumer Understanding
Quantitative ResearchBrand Test
Valuable Users
What they know about the brand?
Do they understand the benefits?
Are they able to communicate
benefits to customers?
How visible is the brand in store?
How do they rate Dry-FIT
What is the competition?
What are the best sellers?
Why are they the best sellers?
Valuable Users
What sport do they do?
What do they wear?
What is important?
Which brands do they use?
Why do they use them?
Which have the best designs?
Which are the most wearable?
What do they like about the
advertisements?
Valuable Users
Level of brand awareness?
Level of Interest in the brand?
Perception of the brand?
Likelihood to buy at current and
different price points?
Attractive Attributes of the brand?
Level of agreement with media
communication?
Is current marketing successful?
Rationale:
Research Design: Store Audit
Store audits are a good way to assess the barriers to purchase i.e. poor visibility, limited availability
and sales knowledge. Our experienced staff will record their systematic observations and conduct
depth interviews with store managers. This method is very effective in revealing any underlying or
hidden
information (Malhotra, 2007:159).
The criteria for the respondents are:
Store Manager & Staff
Length of interviews:
30 minutes
Selection
Stores will be selected in high traffic areas
Hong Kong / Shanghai /Sydney
8 x Stores Interviews will be conducted with store managers
Nike or Outlet Store Stores must keep Dri-FIT range
Sample attached as an appendix
Rationale:
Research Design: Focus Group
Focus groups are proposed because they are a time and cost-effective way to explore various issues.
This method provides an environment in which you have direct contact with consumers allowing you to
understand the behaviour and thinking of the respondents as individuals. The group dynamic is very
effective as it encourages people to think and speak and build on each other’s ideas. This pre-quantitative
preparation will provide insight for our questionnaire design
(Malhotra, 2007:145-155, Rosenberger, 1996:1-13 & Morgan 1993: 3-19).
The criteria for the respondents are:
Aged 18 – 50
Athlete / Athletic Participant / Consumer
8 x Respondents per group
Length of interviews
Approximately 120 minutes
Recruitment
All respondents are screened to ensure suitability
Hong Kong / Shanghai /Sydney
Mixed Group
1 x Male / 1 x Female
1 x Male / 1 x Female
1 x Athlete
2 x Athletic Participant
2 x Consumer
Current user of brand or competitor
Minimum 4 respondents in each group
Sample attached as an appendix
Research Design: Questionnaire
Rationale:
The key objective of this questionnaire is to understand consumer awareness, behavior and
perception towards the brand and their acceptance at different price points. This questionnaire shall
be conducted outside stores in high traffic areas. The method will provide a representative sample of
the population
(Malhotra, 2007:296-322 & Williamson et al., 2000: 235-249).
Length of interviews
The criteria for respondents:
Aged 18 – 50
Athlete / Athletic Participant / Consumer
Approximately 15 minutes
Recruitment
As customers exits store
Questionnaire screens respondents to ensure suitability
Hong Kong / Shanghai /Sydney
Total sample sizeMale & Female
N=300
Sample composition
Age 18 – 29
N=100 in each age group (M x 50 / F x 50)Age 30 - 39
Age 40 - 50
Sample attached as an appendix
Data Collection
Data Collection
Design of questionnaires and subsequent analysis will be
conducted by a senior research director (Malhotra, 2007:305-306).Experienced moderators will be responsible for facilitating the focus group
discussions and store visits, conducting store audits and interviewing staff and store managers
(Malhotra, 2007:145 & 158).
Focus groups will take place in a viewing studio allowing the client to view/attend
(Malhotra, 2007:147).
All materials will be agreed and signed off with the client before proceeding - crucially
sample design, questionnaire and recruitment specs (Malhotra, 2007: 300-301).
Fully trained professional interviewers will be conducting the store exit interviews. Quotas and
progress will be monitored by a fieldwork manager or supervisor (Malhotra, 2007: 413-418).
A proportion of the interviews will be back checked i.e. respondents re-contacted and
confirmation of the interview and key information provided in interview made (Malhotra, 2007:
305-306).
Interviewers will use PDA to input questions and additional data entry. The questionnaire will be
scripted onto the PDA and routing done automatically to avoid interviewer errors. The program
will
be tested before going to field (Malhotra, 2007: 419).
Data Collection
Design of questionnaires and subsequent analysis will be
conducted by a senior research director (Malhotra, 2007:305-306).
All interviews will be conducted in the language of the participants.
Data Analysis
Lifecycle of the Research Project
Meet with Nike Brand Manager to ensure understanding of objectives, target consumers and research plan
Store Audit & Develop questionnaire answer options, decide on which consumers will take part in discussion groups and interviews
Fieldwork – Questionnaires administered
Hold focus groups and finalise questionnaire answer options
Analyse results – check data and figures from questionnaires, watch videos/ transcripts of consumer groups and interviews
Prepare presentation that answers client’s objectives and make business recommendations
Analysis will allow us to measure perception and
attitudes
Potential: Purchase intention would be improved if perception and attitude towards the range improves.
Dri-FIT is a good brand
I have seen the advertisements
Dri-FIT designs are good
Dri-FIT pricing is competitive
Dri-FIT have the styles I want
27.0
28.0
25.0
27.0
8.0
43.0
38.0
29.0
67.0
100.0
Dri-FIT is a fashionable brand
Dri-FIT is suitable for me
17.0
18.0
27.0
26.0
Maintenance: Concept creates low to moderate perceptions of ‘Dri-FIT’ as a fashionable brand.
Maintenance Potential
Analysis will allow us to measure purchase interest
Research will identify the segments with greatest purchase intention
50%
60%
Aged 18-29N=50
FemaleN=150
65%
Total Evaluated(n=300)
Females aged 18-29 has purchase intention of 65%
Data Analysis
The tool we will use to analyze the relationship between the independent and
dependent variables is cross-tabulation (Malhotra, 2007: 468).
Our rationale for using this method:
Cross tabulations are easy to interpret and understand.
They can be used with any level of data: nominal, ordinal, interval, or ratio.
A table can provide greater insight than single statistics.
It solves the problem of empty or sparse cells.
Reporting
Reporting
The research deliverables are:
One PowerPoint research report covering:
Store Audit findings
Qualitative in-depth research findings
Quantitative questionnaire research findings
Following supports are expected from Nike:
Stimulus materials to introduce the store and the product
Advisory input in developing attributes or answer options used in the questionnaire
*A workshop to discuss the implications of the findings is optional.
Timing
Timing
A total of 10 weeks are required to deliver the final research output.
Week No.
TASK 1 2 3 4 5 6 7 8 9 10
Store Audit
Qualitative
- Preparation of research
- Recruitment
- Conduct Focus Group
- Reporting
Quantitative
- Set up, develop questionnaire
- Fieldwork
- Reporting
References
References
Alreck, P.L. and Settle, R.B. (1999) Strategies for building consumer brand preference, The Journal of Product & Brand Management, Vol 8, No 2, pp 130-144, viewed 13 June 2009 ht t p: / / www .e m era l d i n s i g h t. c om
Francis, G. (2007) Introduction to SPSS for Windows, v15.0 and 14.0, Pearson Education Australia
Kay, M. J. (2006) Strong brands and corporate brands, European Journal of Marketing, Vol 40, No 7/8, pp 742-760, viewed 13 June2009 ht t p: / / www .e m era l d i n s i g h t. c om
Kotler, P. (2004) Ten Deadly Marketing Sins: Signs and Solutions, John Wiley & Sons, New Jersey, pp 20, ISBN: 978-0-471-66206-8
Malhorta, N. K. (2007) Marketing Research: An Applied Orientation 5th Edition, New Jersey, Pearson Prentice Hall.
Morgan, D. (1993) Successful focus groups : advancing the state of the art Chapter 1, pp. 3-19, Sage Publications, Newbury Park,
Calif. Ramaswamy, V. (2008) Co-creating value through customers' experiences: the Nike case, Strategy & Leadership, Vol 36, No 5,
pp 9-14,viewed 13 June 2009 http://www.em eraldins ight.c om
Rossenberger, P. J. (1996) Focus Groups: An Introduction for the Uninitiated, pp. 1-15, Department of Management, University ofNewcastle
Shiffman, L., Bednall, D., O’cass, A., Paladino, A. and Kanuk, L. (2005) Consumer Behaviour, 3rd Edn, NSW, Person EducationAustralia
Williamson, K. (1989) Research methods for students, academics and professionals: information management and systems, Kirsty 2nd ed., Chapter 14,2002,pp. 235-249
Appendices