Macromill china brochure

Research Services in China

2013．5

2

Macromill China company profile

Minglu Marketing Research (Shanghai) Co., Ltd.

■Address

■Permit issued on

■Capital

■Board of directors

■Employees

Room1203, Hongyi Plaza, 288 Jiujiang Road, HuangpuDistrict, Shanghai, China

March 30, 2011

150 million JPY ＊as of July 2011(joint venture between Macromill (90％ ownership) and Bosa

International Trading (Shanghai) Co., Ltd. (10% ownership))

Executive Vice President,CEO Katsumi KonishiExecutive Officer Tetsuya Shinoda

22 total(4 from Macromill HQ, 18 local staff)＊as of October, 2012

http://cn.macromill.com

*Official homepage

http://cn-monitor.macromill.com/

*Survey registration site

Office location：We do research in Waitanarea/Nanjing Road, one of Shanghai’s hotspots.

ICP license：沪ICP备11039655号-1

We have acquired permit of private business research

3

Gain a “better understanding of the Chinese market” with our services

Our 3 strengths

Comprehensiveunderstanding of themarket from new and

abundant studies

Lower costsHigher speedBetter qualityMarketing support

networks of thelocal market

250 projects total runbetween April 2012 and

March 2013

・Online・Offline

・Industry marketing research

Operating in China for 8years

Acquisition of InfobridgeChina

Headquartered in Shanghai,Macromill China invests in 14million panels of the 聯都集団

（UC Group） company.We also collaborate with local

mediaconsulting/design/legal/accou

nting companies

Data quality is assured by ourinternally managed panels

and online system

Expansion of the group byCLT/offline recruiters and FGI

moderatorsWe can deliver qualityresearch at Japanese

standards based on localprices

Research Local support

4

Research services

1. Line up of various “step-by-step” research services/solutions

We provide various research services tailored to clients’ specific research needs

■Group/In-depthinterview

■Home-visit

Online Offline

■OnlineResearch

■Chat interview

Number of projects fromApril 2012 to March 2013

■CLTe

■HUT

ＭＥＮＵ

Companies/

Industries

■Desktop survey,Secondary datapurchase

■Company interview

■Industry research

Total 251 studies

＊Our team has been arranged to deliver high and stable quality data.

Offline researchconducted in:

Shanghai/Beijing/Guangdong/Chengdu/Chongqing/Shenyang/Jinan/Zhengzhou/Xian/Changsha/Wuhan/Suzhou/Yangzhou/Nantong/Wenzhou/Huizhou/Foshan/Kunming/Taiwan/Hongkong

Online59%

Other consumerstudies

35%

Industry research6%

5

Research services

2. Services which reflect “local situations” of both Japan and China

Research activities within ChinaProven experience in research

within Japan

Our survey design is tailored to local situations and is based on our proven record ofresearch in both China and Japan. We provide research to serve clients of both countries.

We release data on 1-2 self-conducted surveys everymonth. Feel free to contact us for accessing this data.

6

Research services

3. Reduction of “Japanese-Chinese” miscommunications

Translation quality is ensured througha network of translator specialists anddouble checks done internally.

Our staff with living/studyexperience in Japan arein charge of the survey designand analysis.

Our exclusive TV conferencesystem enables for smoothTV conferencing between ourJapan and Shanghai offices.

Macromill China ensures that the translated questionnaires correctly reflect the client’srequests and aims in research within China.

High qualitySurvey translation

assured

TVConference system

Japanese standardQuality assured

7

69.4%

50.5%

24.6%

76.2%

62.2%67.3%

72.9%

7.0%

25.0%

6.5%

81.8%75.2%

9.2%

91.7%

29.9%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

10～ 19 20～ 29 30～ 39 40～ 49 50 and above

2010 2011 2012

Internet penetration rate in China

The national average stands at 41.1％ (By the end of 2010, the penetration rate in Japan was 78.2％, and 46.3％ in2001.）In cities such as Beijing and Shanghai, the penetration rates are above 60％. As opposed to a high penetrationamong young generations, the penetration among older generations (above 40 years old) is low.

＊CNNIC as of January 2013By year

◆広州市

◆成都市◆重慶市

◆北京市

◆天津市

By age group

By region

Online

Offline methods are recommended for studies targeting 40 years old or above.

Offline studies are recommended for the developing third-rate cities. CLTs are conducted using the online surveyscreens.

Online research in China has been onthe rise, given the trend of risinginternet penetration.

2010 * 2011 * 2012 *

1 Beijing 69.4 70.3 72.2

2 Shanghai 64.5 66.2 68.4

3 Guangdong 55.3 60.4 63.1

4 Fujian 50.9 57.0 61.3

5 Zhejiang 53.8 56.1 59.0

Penetration rate

*By the end of year

5,910 7,950 9,400 11,100 13,70021,000

29,80038,400

45,73051,310

56,400

4.6%6.2% 7.2%

8.5%10.5%

16.0%

22.6%

28.9%

34.3%

38.3%

42.1%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Online population

Internet penetration

*By the end of year

*By the end of year

8

Improving the quality of online research in China

Response attitude

External issues

Internet Penetration Survey design/translation

In major city areas such asShanghai, Beijing, andGuangzhou, internet penetrationrate is similar to Japan at over60%. However, the nationalaverage for internet usage is35% (as of June 2011), as aresult of low penetration rates inrural areas. Conducting onlinestudies in areas not within thecity would give biased resultsand is not recommended.

Penetration is high among 20sand 30s (76% and 50%respectively), but for 40s and 50s,the rates are 23% and 12%.

Internal issues

Panels/Operation

If online is not suitable,we can suggestalternative methods.

We will improve service qualityby using Macromill know-how

Insincere or incoherentresponses are not as frequentfrom Chinese panels, accordingto our trial test results. However,in comparison to other countries,there is a tendency in China forthe respondents to respond witha higher purchase intent andhigher score of awareness.

China’s national character ispresumably one of the causingfactors.

More sources and informationon these tendencies would benecessary for future studies.

We provide advise on howto interpret response datathrough further research onresponse tendencies

◆Panel managementMany research companies inChina are still in the developingstages of research services.Global research companiesusually use global panelcompanies and have limitedexpertise in recruiting panelssuited to local conditions.

In the Chinese panel market,there is a high competition inprice and panel size rather thanthe quality.

◆Issues with conductingresearch

At the pre-launch stage,notification mails are sent torecruit the target respondents.

◆Survey designRespondents cannot selectthe adequate responsesunless the answer choices aresuited to the Chinese market.Poorly designedquestionnaires may cause thepanels to respond in a sloppymanner.

◆TranslationThe translator must have a

good understanding of thestudy objective when doingthe translating the survey. Inparticular, difficult Japanesephrases must be translatedwith care in order to assurethe quality of the survey.

Online

9

Panel verification study

◆Response data collection◆Rate of false responses

The following are features of online research in China based on research onChinese panels conducted by Macromill China and partner companies.

＊We collect the response data without setting anysurvey logics. Contradictions in responses are notnecessarily high among Chinese panels. Thisproblem can be averted by conducting datacleaning and setting the necessary logics.

＊We have selected company A as our partnercompany, based on the verification study results.

＊We deliver our survey results data at 103%, toaccount for data cleaning.

＊We receive survey responses within 2 businessdays after the survey has been launched.

＊Only few respondents respond immediately tothe survey after it has been launched. Most panelsrespond during the morning, showing how typical itis for Chinese people to stay active in the morning.

Company A Company B

％％

ContradictoryChoosing “have never traveled overseas”

and selecting 2 or more countries for countries visited for travel 0.7% 1.1%

Contradictory“Have traveled overseas” mixed with

“have never traveled overseas0.2% 0.8%

Contradictory Individual income＞Household income 1.0% 2.4%

ContradictoryInconsistency in response for number of people

living together1.2% 2.7%

Contradictory Inconsistent answer for number of family members 1.2% 1.1%

False answer Choosing same answers vertically for matrix question 0.0% 0.0%

Exclusive answer Choosing exclusive answer choice with other choices 0.0% 0.0%

Exclusive answer Choosing exclusive answer choice with other choices 0.0% 0.3%

Multiple choice 0.6% 1.0%

Insincere answer Distrustful response 2.2% 4.8%

Same answer content for 3 questions in a row 1.7% 7.0%

Open-ended 2.0% 5.9%

Overall average 0.8% 2.0%

Validation points Details

Online

10

Macromill provides the best quality panels in China*according to a verification study comparing the rates of false and active responses of 7 panel companies

Macromill China’s panel network consists of more than 5 million panelists across China. Weconduct regular verification checks to provide a trustworthy panel network for our clients.

Assured quality for Chinese panel network

Mainland China：546,895

*As of September 2012

Panel size for trap surveys and activeresponses (responded within 6 months)

Quality maintenance of panels

Trap Surveys

Trap surveys are conducted based on the same standards as our Japanheadquarters.

Only panelists who can respond to the survey correctly, without logicrestrictions are extracted.

Around 5% of the panel response data are excluded before data cleaning.

Usage of Active Panels

A large number of registrations doesn’t necessarily equal to high responserate by the panelists.

Our panel consists of active panelists with 50% response rate within 1 weekof study launch.

Telephone Confirmation

Follow-up surveys via telephone are conducted in the case of anycontradictions in the response data. The quality of our panels and those ofour partner companies are maintained through strict schemes.

* In improving service quality within the industry,Macromill offers its technology and know-how to majorChinese online panel partners, in addition to itsoriginal panels.

Online

11

Combined offline/online quantitative study

Same online survey questionnaire for CLTs

Online Offline

Discount

Combination withonline research andcost-cutting of data

input

Real time data tabulationSame-day delivery

Reduced risk oflogic /operational

errors

Abundance of fastopen-endedresponses

We create our questionnaires and input all response data usingAIRs, our exclusive online research system which enables forfast, error-free operations.

At the study venue, we prepare tablet PCs which allow for conducting onlinestudies while moving around the venue, or on-the-go in the streets. Open-ended responses can also be entered into AIRs. Our research staff conductsinterviews to collect response data (respondents do not fill out theirresponses).

Offline study targets can be recruited from our registered onlinepanelists, under a combined cost including the online study.

Conventional CLT

(pre-recruitment)

(Comparison of quotes (30 questions, 100 respondents in each city: Shanghai (1st rank), Chengdu (2nd rank), Changsha (3rd rank))

Our offer

Quotation total

1,900,000 yen*

1,900,000 yen*

＊Image of actual CLT

＊A4-sized answer sheets areshown to respondents

Note

Shanghai/

Chengdu

Changsha

800, 000 yenOnline studies are strongly recommended due tohigh penetration rate of the internet.

Online research

2,800,000 yen*

800, 000 yenSame online questionnaire is used for conductingthe offline study after recruiting.

1,600,000 yenWe receive repeated requests for our combinedoffline/online study from clients who have beensatisfied with the survey results.

*approximate figures

12

Online qualitative study offered by Macromill

Get authentic information easily

SNS services in China are more widespread and developed than in Japan. We reach to our consumer respondents bymaking use of multiple features from different SNS services. One of the strong points of online interviews is the ability tocommunicate using photos and emoticons.

Having breakfastwith a stomach

ache

Hot porridge forbreakfast

Milk and steamedbread forbreakfast

Dessert of thenight

Online

Emoticoncommunication (Chat

group interviews)

13

Quality Enhancement of Offline Research in China

■Our research partners include well-acclaimed and experiencedmembers of CMRA (China Marketing Research Association）. We collectfurther information on more than 30 of these companies by directlyvisiting their offices.

■We select the most suitable research partner which can meet the studyobjective, based on their quality strategies, speed, costs, and expertise.

Macromill’s partner managementMacromill’s partner management

■Several of our staff are always present during the study toinstruct/supervise the researchers and communicate backgroundinformation of the survey. We use appropriate manuals/check lists totrain our staff.■We offer and prepare our facilities for stable operation in provincialcities where facility problems are likely to occur.

Delivery of secure, high quality offline research

Macromill’s partner networkMacromill’s partner network

Factors affecting service quality

①Accuracy in recruitment → Confirmation on telephone, collection of photos, recruitment of many respondents as possible②Moderator → Effective communication with client through TV conference before the study is launched.③Interpretation → Contract with experienced individuals who are specialized in Japanese④Facilities → Safe, high quality facilities/Ability to view the study online from Japan⑤Quality management → Survey design, checks on deliverables, and operation of venues are done entirely by our staff.

調査設計にかかわる注意点、事前準備

発注書（プロジェクト共有シート）の作成と関係者ミーティングの設定▲５発注書（プロジェクト共有シート）＊お客様との条件確認および品質向上のために自社でスクリーニング票の作成は必須＊自社製作のスクリーニング票はエクセルフォーマットで作成

スクリーニング票の作成▲６スクリーニング票＊お客様との条件確認および品質向上のために自社でスクリーニング票の作成は必須＊自社製作のスクリーニング票はエクセルフォーマットで作成

調査フローのチェック□ モデレータが番号で発言できるように（速記録に残せるように）注意喚起□ 提示物、アンケートの提示が漏れないようインタビューフローに記載

▲７インタビューフロー

こまめなスケジュールのご案内・対象者確保状況のご連絡□ 対象者確保が出来次第事前に参加者リストをお送りする□ 会場手配状況のご連絡

調査実施にかかわる注意点（事前準備）

発言メモ用紙の準備▲８発言メモ（A４）

リクルーティングリスト参加予定リスト来場者の番号を伝えるバックルームで選定最終参加者リストの作成

席順はモデレータ左から時計回り最終リストは並んだ席順に番号を作り直す

写真撮影

＊必ずデジタルカメラを利用すること（室内のためブレが生じる）

持ち物（持参の宿題がある場合）

参加者全員

回答席順に並ぶ、顔が重ならないように注意する

▲９

バックルーム参加人数の確認

Manual/check lists compilingservice know-how

Guide (pamphlets) to ourmoderators and study venues

Offline

14

① Face-to-face interviews preferred over group interviews① Face-to-face interviews preferred over group interviews

・Moreover, it is difficult for the interpreter to translate the spoken comments when the respondents giveresponses simultaneously in the group. Due to cultural differences, there are likely to be many unsure pointsfrom the conversations in the group. Face-to-face method makes it easier to understand and question therespondents.

・In China, people are concerned about saving their face, and despise feeling inferior to others. They tend to avoidnegative responses such as “incapable” ,”unaware” or “don’t have.” Likewise, it is difficult to grasp the real situation ofthe respondents and their actual intentions during group interviews. In China face-to-face interviews are more prevalentthan group interviews.

・A pre-launch meeting with the moderator about the survey objective/theme is important for preparing adequatequestions for the respondents. At Macromill, our Japanese staff and Chinese staff fluent in Japanese are in chargeof intermediating between the client and moderator. Conferences between our Japan and China offices can be doneusing our exclusive TV conference system. You can have a comprehensive discussion with the Chinesestaff/moderator while in Japan, before the survey is launched is possible.

・There are unique Chinese phrases and terms which cannot be simply translated to Japanese. In order to reflectthe correct implication in the responses, we keep the Chinese wordings and explain the meanings separately.

・Transportation is always an issue (even between big cities) in a vast country like China. It is common that thetransportation system doesn’t run on time. Our local Chinese staff plans and makes all arrangements for thenecessary transportation and will assist you while on the move.・We also offer new research solutions such as online interviews and chat interviews which are less affected fromtransportation issues.

② Thorough pre-launch survey design/Communication of unique Chinese terms② Thorough pre-launch survey design/Communication of unique Chinese terms

③ Transportation schedule③ Transportation schedule

Key points to take into consideration for interview surveys conducted in China

Offline

15

Offline service venues

Company A Company B Company C

Offline

16

Factors determining the quality are as follows:① Reliability of purchased data

（Only data clearly indicating the source is used. )② Accuracy of recruiting/Briefing for interviews

（We double check respondent profiles without giving any notice inadvance)③ Precise data editing④ Appropriate data analysis/handling

（Verification by experienced consultants (Chinese or Japanese) foreach study topic) *Only under client’s consent

Daily necessities31%

Food products10%

Machinery10%

Automobiles9%

Home electronics8%

Information devices7%

Other25%

Understanding the market environment in China (marketing/company research)

Survey method① Collection/purchase/editing of secondarydata/corporate finance data

Data purchase costs are subject to change depending on the information content.Please feel free to contact us regarding the quote.

Survey method ② Interview to relative targets

We provide the survey plan, quotation of costs, and scheduleupon discussing about the survey objective and budget matters.

Step 1(Planning)

Step 2(Research)

Main information source：Published data by the government/industrial associations,Data of registered companies from the Administration for Industry and Commerce

Main information source ：Manufacturers, retail/sales agencies, sales rep. at the store

Step 3(Analysis)

To cover the inconsistencies between the survey results and information sourcedata, estimated figures (based on past case studies) are used. Basic data usedfor analysis is also included.

Partner company’s annualnumber of projects:

168

Report

▼Quotation structure ▼Quality points

Breakdown of costs:① Data purchase from information sources（Companies/industrial associations/national statistics

office/Administration for Industry and Commerce), import/export data② Recruiting/Incentives/Transportation costs③ Data collection/compiling/editing costs④ Translation cost

Depending on the content, analysis (using past records from our network)may not be available for the purchased data. Lacking information can beobtained from interviews.

Industry/Company

Interview on key targets only isalso possible.

We have experience interviewingdistributor buyers, businessmanagers, government-authorityrelated persons, magazinecompany persons related

17

Marketing research examples

Sample report on company research

Sample marketing research reports:

Main structure: Product category or feature/Price range/Sales volume and estimates by product category/Categorization andscope of sales channel/Commercial distribution pattern/Legal constraints or precautions on market entry

→Separate costs for detailed analysis or marketing strategy proposals devised from study results in each region

Main structure: Corporate structure/Sales volume and profit by category/Product features/Business channels/Focus of productand sales strategies/Investments in advertising and promotion/Terms of business by local product/channels

→On average, 1 report per company. Separate costs for detailed analysis of each region.

Industry/Company

18

We are improving our services for research in Hong Kong

Expansion routes to China

Beijing

Shanghai

Hong Kong

Projects bids in Hong Kong are on the rise

Benefits to expand in Hong Kong

▼Online research

▼Offline Research

You can have access to local information inHong Kong via our local partners. We can alsoassist you by attending from Japan.

Panels available for study

98,678＊Hong Kong’s high internet penetration rate of 68.8％（2011）

Qualitative research：we team up with high profiledmoderators//interpreters and offer quality venues.

We collaborate with experienced partnersto provide venue/street surveys.

・High favorability of Japan・High consumption intent and service levels・Less barriers to entry and similar businesscustoms/environment with Japan compared to China.・Many high-income class shoppers visiting from China,other Asian countries, and around the world

（Less expensive than home country, especiallyChina.）

19

Client’s research purpose (example)：

*A client considering to expand in Chinese markets, has limited information for decisionmaking on market size, lifestyle of targets, target areas, etc.

Quotation

800,000 to1,200,000 yen

1. Observation via home-visit surveys(5 homes)

1. ”Extreme” interviews(10 people)

1. Desk research on specified industry2. Case study analysis

＜STEP1＞Schedule

Survey designto delivery of report

1 month

*Analysis of top companies is conducted upon doing research on market size, distribution system, and transaction structureof target industry.*Refer to attached “Marketing research sample: Understanding the sofa market” “Company research sample: Analysis oncompetitors”

800,000 to

1,000,000 yen


3 weeks

800,000 to

1,200,000 yen

Research Method

Fees and Timeline

Understandingmarket size and

business structure

＜STEP2＞

Study on potentialtargets’ actual

conditions

*Home-visit surveys are conducted to do observations on targets’ lifestyle and usage of products.

2. Online survey on potential targets(30 questions, 1000ss)

1,000,000 to

1,200,000 yen


1 month

*Research is done on usage & attitude, values, and lifestyle of potential targets and their target product categories

＜STEP3＞

In-depth study onpotential targets

*In-depth interviews are conducted on those who gave positive or negative responses about the products newly entering themarket.In the interview, appeal points and negative points will be assessed for building sales strategies.


1 month

20

Combined offline/online study(CASE1)

・Marketing research for understanding the overall current market size/players/sales channel・To test the acceptability by consumers regarding the product and concept

Objective: To test the acceptability of product A, a popular product produced in Japan,and find strategies to attract target consumers in case there is a demand.

Market information Consumer information

Pre

-field

work

Fie

ldw

ork

③Interview on industry experts

②Survey on consumer purchase

④FGI Study

・Understand market size (by category,region, channel) over the next 3 years andfuture estimates・Sales performance/sales volume/successfactors by competitor companies

(As per slides 16 and 17)

①Marketing research

・Purchase frequency, purchase brand, purchase reason for each brand・Usage scenes, usage methods・Purchase channel, changes in purchase channel + reasons・Display and evaluations of concepts・Ideal purchaser/evaluator and points for acceptability

(As per slides 7-10)

・History of development of distributionstructure, and the product category;Strengths/weaknesses of mainstreamcompanies/distributors･Changes in consumers, governmentregulations・Precautions for market entry; feasibility oftarget product’s market entry


・Purchase frequency, purchase brand, purchase reason for each brand・Usage scenes, usage methods・Purchase channel, changes in purchase channel + reasons・Display and evaluations of concepts・Ideal purchaser/evaluator and points for acceptability


21


・To test the possibilities of further expanding into the market, by examining the development of 2nd /3rd rate cities・Summarize the estimated growth and potential of target areas for the next few years

Objective: To gain tips for possibly entering the Chinese market of a particular industry

Our services/information Consumer informationMarket information

Pre

-field

wo

rkF

ield

wo

rk

③Municipal/government-relatedinterviews

④Interview on Store Managers

②Online research

⑤Home-visits/FGIs

①Desk Research

・GDP growth of suburban cities, population,age structure, land price, industries, life style,main commercial areas, etc.


・History, characteristics and growth potentialof the area.・Agenda for companies expanding businessin China; future development plans of cities


・A survey on lifestyle in major areas at anationwide level; to collect responses to theproduct’s penetration level and topics likebeauty, health, and the environment; usagesituation and reasons of sales channels.

→Analysis on characteristics of each area


・Sales performance/consumer base ofpotential competitors・Acceptability of target product・History of distribution channel structure andgrowth of target product category; Strengthsand weaknesses of maincompanies/distributors.･Changes in consumer behavior andregulations by the government


・Our home-visit interviews are designed togain a better understanding of the family’sstate (progress, etc.) and effectively recruitcandidates for FGIs (by collecting photosbeforehand)


22


・Check current value of the brand→predict effects after changing brand name・Results on brand penetration, advertising, evaluation messages after name change→Hash out issues・Usage/sales channels of target product category in suburban cities→Proposal of expansion strategies

Objective: to predict evaluation results of target brand, after the brand name hasbeen changed; in order to further expand the brand’s business.

Pre

-field

work

Fie

ldw

ork

⑤Online interview

②Online quantitative study

④Online quantitative study

Consumer informationMarket information

①Case study

③Store survey

Pre-survey/post-survey

・Case studies of successful/unsuccessfulresults from name change; factors of theresults


・On people who actually see and hold thenew product.

→Impression of product; awareness ofname change; advertising after name change


・On current users about their awarenessand image of the brand・Estimated withdrawal from the brand aftername change


・On users about their awareness andimage of new product.・Understanding of name change,penetration of advertising, media in contact・Calculations on withdrawal from the brandand brand induction


We do online chat interviews on Weibo, tocollect people’s responses about a newproduct.

(As per slides 12)

23

Please feel free to contact us forany inquiries regarding services

in China

Macromill china brochure

Business

Transcript of Macromill china brochure