THE KEY-STONE RESEARCH DEPARTMENT research Qualitative research and focus groups Customer...

THE KEY-STONE RESEARCH DEPARTMENT

Activities

Desk research (market facts & figures, industry studies, etc.)

Quantitative research

Qualitative research and focus groups

Customer satisfaction

Customer needs and market tests

Trade analysis, mystery shopping

Positioning analysis

Business Panels

Ad hoc and customized surveys

Method

MARKETING RESEARCH AND MARKET STUDIES

Identify customer needs

Set researchgoals

Set the type of research

Collection of secondary data

Collection of primary data

PRIMARYsurveys

DESKresearch

REPEATEDsurveys

AD-HOCsurveys

QUANTITATIVEShares,

penetration,

etc…

QUALITATIVEneeds,

perception,

etc …

Business PANEL

sell-in, sell-out,

etc…

QUALI-QUANTITATIVEbrand analysis,

etc…

Results presentation

Data processing and analysis

Strategic support to the interpretation

QUANTITATIVE RESEARCH

QUANTITATIVE

RESEARCH


Key-Stone, following the requests from its clients, is

able to develop quantitative researches with tactical

and strategic aims. The interpretation and analysis of

the results are also provided.

The used methodology allows Key-Stone to approach

different fields and market segments.

In particular, a specific know how in some

niches/segments (medical, dental, cosmetics,

publishing, civil and industrial plant design, mechanics,

automotive) has been developed, both in Italy and

abroad.

The used methodologies are the most suitable ones,

according to the goals of the research, and they can be

explained as follows.

QUANTITATIVE RESEARCH A

.P.B

.S.

ME

TH

OD

OL

OG

Y

Positioning: A.P.B.S. methodology

A.P.B.S. methodology gives a “positioning analysis” of the main brands in a

specific market segment, and it investigates:

Awareness

Penetration index

Buying behavior

Satisfaction level

This analysis allows to spot the main drivers of a given market segment and, from

a benchmarking point of view, it makes possible to understand the positioning of

the competitors.


Awareness Analysis

MAIN INDEXES (PRIMARY INDEXES)

Top of Mind

It’s the unaided, first named brand, related to a

given product family.

Unaided awareness

It’s the total of spontaneously quoted brands, related

to a given product family.

Aided awareness

It’s the awareness coming from the interviewees,

when prompted to a list of brands (which are not

spontaneously quoted).

QUALITATIVE INDEXES (DERIVED INDEXES)

These indexes come from the ratios between the

main awareness indexes.

Prominence index

It’s the ratio between Top of Mind and unaided

awareness: this is – for a given brand - the ability to

represent a given product family. This index is not

related to the total awareness.

Relevance index

It is the ratio between unaided awareness and total

awareness: the brand’s ability to be included in the

basket of the brands taken into account by

customers at the moment of the purchase.

A.P

.B.S

. M

ET

HO

DO

LO

GY


Penetration

It represents the percentage of customers who

declares to use a given product or brand, not

necessarily in an exclusive way.

Top Used

Percentage of customers who uses a given

product as the first one, in order of importance.

PQI (Penetration Quality Index)

It is the ratio between “Top Used” e “Penetration”: it

indicates the quality of the penetration and the

consequent chance that the increase in the number of the

customers will considerably affect sales.

Penetration Analysis

A.P

.B.S

. M

ET

HO

DO

LO

GY

P.Q.I. Index

0%

10%

20%

30%

40%

0%

20%

40%

60%

80%

100%

Penetration 30,4% 17,7% 9,9% 7,8% 5,4% 4,6%

Top used 25,8% 15,6% 6,7% 6,2% 3,8% 3,2%

P.Q.I. 0,85 0,88 0,68 0,79 0,70 0,71

Brand 1 Brand 2 Brand 3 Brand 4 Brand 5 Brand 6


The buying behaviour investigates on the main drivers in the choice or abandon of products or

brands.

With the aim of obtaining some consistent statistical items which are related to the reasons to buy, all the

main starting items are submitted to the sample.

The analysis leads to the assessment of a limited number of factors as a synthesis of the different

variables taken into consideration.

The average of the statistically most significant and discriminating items allows to create positioning

maps according to different purchase drivers.

Buying Behaviour

A.P

.B.S

. M

ET

HO

DO

LO

GY

Main reason that pushes to use the product

4,4

4,3

4,2

4,1

3,5

4,0

Functionality

Pricing

Aesthetic

Quality

Habit

Security

Focus on

Mean


The Customer satisfaction investigates on the perceived quality of a product/service through spotting

and analysing some evaluation items. There are two main analysis with this regard: Pearson’s

Correlation and Multiple Regression.

Bivariate correlation (Pearson)

It evaluates the ratio between the single factors

satisfaction level and the total satisfaction. The

result is the identification of an importance

hierarchy of the single factors of satisfaction (this

can be showed on a map).

Multiple regression

It evaluates the relation between a dependent target variable

(e.g. the overall satisfaction) and a group of independent,

explanatory variables.

In this way, we try to understand and foresee the behaviour of the

dependent variable in response to the variations of the explicative

ones and how they affect the dependent variable.

Strenght points

Critical area of

improvement

Indifference

Waste

COMPANY/PRODUCT

E.G.: Satisfaction

related to a

specific

company/product

E.G.: The factors linked to the “Product” weight for more

than twice compared to the “Price” and the “Service”. Thus,

these are the variables which a company must work on in

order to increase the total satisfaction level.

Satisfaction Analysis

A.P

.B.S

. M

ET

HO

DO

LO

GY

SODDISFAZIONE

COMPLESSIVA

Prodotto

Servizio

(R 2 =0,56)

Company

relationships

51%

25%

24%

experience

Price

OVERALL

SATISFACTION

Product

Service

(R 2 =0,56)

51%

25%

24%


We can focus on the perceived image of a brand or product with two analysis: the Correspondence

Analysis and the Discriminant Analysis.

Correspondence Analysis

It highlights the customer perception for a given

brand in comparison with the other considered

brands: it is a visual statistical method which is

applied to qualitative variables. The aim is to

synthesize all the associations through a frequency

table.

Discriminant Analysis

The Discriminant analysis is a multivariate statistical

analysis: it spots the “elements” (discriminant function)

which better distinguish the items (brands or products) in

the consumer’s mind. It identifies all the aspects which better

explain the differences in the evaluation of the different items.

It is useful to position brands or products in relation to a list of

technical attributes.

Analysis of the

perceived image


The Pricing is a key element to the company business. It is crucial to implement an effective pricing policy

based on the knowledge of the market, the competitors, the distribution channels and the customers. This must

be done with effective methods and techniques. The most relevant methods used by Key-Stone are:

Gabor-Granger Analysis

It is an interview with the aim to

understand which is the maximum

price customers are willing to pay for

the purchase of a product.

Van Westendorp Analysis

It implies the assessment of 4 basic

information (threshold prices): a

threshold within the product is seen as

affordable; a threshold within the

product is seen as expensive but the

purchase is still considered; a threshold

beyond which the quality of the product

is questioned; a threshold beyond

which the product is considered so

expensive that it is not even considered

for the purchase.

0

10

20

30

40

50

60

70

80

90

100

0 1 2 3 4 5 6 7 8 9 10

% r

esp

on

den

ts w

ho

beli

eve t

his

pri

ce/i

mp

ressio

n f

or

this

pro

du

cts

Price in Euro

EXPENSIVE

TOO EXPENSIVE

TOO CHEAP

CHEAP

INDIFFERENT PRICE

POINT

POINT OF

MARGINAL

EXPENSIVENESS

POINT OF

MARGINAL

CHEAPNESS

OPTIMUM PRICE

POINT

Pricing Analysis


The aim of this research is to find clusters of people which have different characteristics but with common

features inside the same cluster. All people belonging to the same cluster can be reached with appropriate

marketing segmentation techniques. People belonging to the same cluster are characterized by similar

characteristics and behaviors.

Cluster Analysis

Free time employment

Specialists

Reachers 1,4%

Internet surfers 9,7% 1,4%

Senior 25,0%

New customers 13,0% 17,1% 8,9% 2,4%

Total market 19,8% 16,3% 10,8% 5,8% 8,0%


Travels


Reading


Hobbies

Ifree time employment

Sports


Don’t know

1.

2. REACHERS

3. INTERNET SURFERS

4.

5. NEW CUSTOMERS

Segments profiles

description to

understand

characteristics, habits and

buying behaviour:

SPECIALISTS

SENIORS


Brand Positioning Analysis

Cluster Analysis

Quantitative Analysis Validation

Buying Behaviour

Customer Satisfaction

Geomarketing Analysis

QUALITATIVE RESEARCH


The qualitative approach is complementary to the

quantitative approach.

Key-Stone, in response to its customers needs, is able

to design tactic and strategic qualitative studies,

together with the interpretation and the analysis of the

results.

The qualitative research promotes the analysis and

the deepening of attitudes, opinions and languages

of the different targets, by mean of an approach that

analyze the psychological and emotional aspects of the

customers behavior.

By studying small samples, the qualitative research

allows the investigation of not well known

phenomena and emotional aspects and perceptions.



The qualitative research is particularly effective when it is requested to:

• investigate in depth on a given topic (diagnostic function)

• analyze on attitudes, emotions and specific behaviors (explorative function)

• set up adv campaigns key elements (creative function)

• prepare a quantitative questionnaire (preparatory function)

Within this context, important indications can be obtained on:

• symbols and values standing at the base of the target lifestyle and habits

• language and typical customer expressions

• psychological and socio-cultural factors underneath attitudes and opinions

• target’s latent needs, ambitions and desires


In depth Interview

Focus Group

In home visit

Go shopping with

consumer

The qualitative research implies a group of different techniques according to the specific needs and goals set.

It allows to better explore latent emotional/psychological elements otherwise

difficult to verbalize. It is particularly suggested when dealing with difficult targets

or delicate topics.

It focuses the attention and discussion of a group of people on a specific topic; its

goal is to reveal knowledge, believes and motivations which lay under attitudes

and behaviors associated to that topic.

It allows to observe the conditions of use of products, in order to highlight existing

relations with stated opinions and showed attitudes. It also allows to understand

the dynamics and perceptions in a private scenario.

It analyses the spontaneous attitude of a customer towards brands and products.

It verifies the main drivers which affect the purchase process.


The qualitative research allows to investigate and to understand different areas, in relationship to the goals of

the study, through specific methodologies. Particularly:

Its aim is to understand the incidence of the deep and unconscious motivations on the

purchase process and the use of a product. The analysis is focused not only on the

functional aspects but most of all on the symbolic ones. The relevant factors which

activate specific behaviours towards objects or activities will emerge.

Motivational

Analysis

It is based on the lifestyle analysis of the target and it tries to link the expressed attitudes

towards a product/service with all the performed activities, interests and opinions. It

enables to establish a connection between the buying behaviour and the personality

variables.

Psychographic

Segmentation

Product test It verifies in functional and emotional terms which are the characteristics/attributes of a

given product and it also compares them with the main competitors’ ones. It aims to build a

unique and attractive selling proposition, in line with the customer expectations and needs.


It is based on an interactive research process between the interviewed target and the

team in charge of the project. (commissioner, adv agency and researcher). Its goal is to

realize and fine tuning of positioning concepts.

Concept Lab

It analyses the reaction to the possible names and the product profile basing on the

evoked sensations, emotions and perceptions. It helps with the assessment of a final

decision which is coherent with the brand values and the universe of symbols of the

target.

Name test

Packaging test It investigates on the deep dynamics underlying the liking of and the product/brand image

defined by the packaging and its ability to encourage the purchase.

Copy test

It evaluates the impact and the effectiveness of an adv campaign related to the

psychological and emotional feedbacks from the target. It allows the evaluation of

different proposals, ideas and topics and their actual matching with needs and

expectations.

DESK RESEARCH

DESK RESEARCH

The desk research collects, studies and compares all

the economic, social and regulatory information,

already available in the literature, with the objective of

creating a wide perspective of the topic under

investigation.

It is often utilized during the first design steps of the

entrepreneurial idea, to define a determined scenario.

Main types of desk research:

• Industry studies

• Sales data management

• Balance Sheet data management

• Markets facts & figures

DESK RESEARCH

DESK RESEARCH

Key-Stone offers industry studies mainly to Category Associations or to groups of companies.

The actual economic scenario constantly imposes new tasks to the Category Associations concerning market analysis

and the ability to supply accurate and reliable information to its members and to Institutions.

The already performed industry studies, are related to the Balance Sheet Data Management analysis, which represents

the economic/financial analysis of the balance sheets of a group of companies belonging to the same industry segment.

The aim of this analysis is to allow the management to compare the performance of their company with the average

performance of the industry segment.

The analysis is performed by mean of the collection and normalization of the balance sheet from several years (at least 3),

sample segmentation (by geographical and dimensional clusters or upon specific request by the customer), standard

economic and financial analysis (capital profitability, ROI, ROE, etc.), economic and managerial analysis (structure of

assets and liabilities, etc.)

Industry studies

UNIDI (Union of the Italian

Dental Industries): How the

production and distribution of

dental products evolved in Italy

- 2008

UNIPRO (Italian Association of

the Cosmetic Companies):

Integrated research in the

professional cosmetic industry in

Italy – 2008-2009

European leader in the market of

furniture for large-scale organized

retailing: Development models in the

market of furniture for large-scale

organized retailing in Europe – 2005-2008.

So

me

ca

se

his

tory

DESK RESEARCH

Sales data collection in order to analyse the trend of a particular industry or a company in particular. The

research can be performed through panels, or they can be done especially for marketing/commercial

analysis to support strategic decisions and/or business plans (e.g. Customer retention).

Since 10 years, Key-Stone’s panels in the European dental sector have been the reference point in market

research for local and international companies operating worldwide in the dental industry.

Well-known surveys are:

- Flash Analysis: it collects sales data and it constantly

tracks the trend of the overall figures, thus monitoring the

market with a monthly pace; it also forecasts the turnover

trend at the end of the current year.

- Fast Track Analysis: it is developed through a sales data

collection from the participating companies. The data are

grouped by product families, product segments and by

country. It is a very useful tool to estimate the business

trend and weight of investigated product families and

countries.

- Sell-in Analysis: it provides actual market size and trend

by mean of a sales data collection from the participating

companies and an estimation of the unknown market (non

participating companies). In order to classify every single

item, the data entry is customized and each packaging is

examined.

Sales data management

• By product

• By product family

• Value and volume sales

at sell-in level

Dealers

• By brand and product

family

• Average selling values

• Sales by region at

sell-out level

Producers

• Sell - in Analysis

• Flash Analysis

• Sell - out Analysis

• Fast Track Analysis

Companies’ information

Supply sales data: Supply sales data:

DESK RESEARCH

Nails sector

THE COMPETITIVE SYSTEM, MAIN PLAYERS

INDIPENDENT NAILS CENTERSINDIPENDENT

NAILS CENTERS

“NAILS”CHAINS“NAILS”CHAINS

IN HOMEOPERATORS

IN HOMEOPERATORS

MIDDLE/BIG SIZED BEAUTY CENTERS

MIDDLE/BIG SIZED BEAUTY CENTERS

SMALL/MIDDLE SIZED

BEAUTY CENTERS

SMALL/MIDDLE SIZED

BEAUTY CENTERS

HAIR DRESSING

SALONS

HAIR DRESSING

SALONS

Low Quality and level of specialization HighLow

Nu

mber

of

operato

rs

Hig

h

Hypothesis on

available spaces

Need forevaluation...

Facts & Figures analyses come from the companies’ needs to have a quali-quantitative evaluation of a specific

business. This analysis show the customers a comprehensive perspective which is useful for implementing a

strategic marketing plan or a simple commercial action.

CEFLA ENERGY: Market scenario and trend

of co-generation plant engines and turbines

in Italy - 2006

GTS: Market scenario and trend of the nails

industry in Italy and Europe - 2007

Markets – facts & figures

CEFLA ARREDAMENTI: Market scenario of

point of sale interior furniture in Russia - 2007

LINEA R: Market scenario of interior doors in

Italy - 2008

Business by product/service

42%

70%

43%

68%

27%

23%

36%

27%

11%

3%

9%

3%3%1%

7%

1%

17%

4%6%

1%

% Treatments % Revenues % Treatments % Revenues

Beauty Centers Nails Centers

Initial reconstruction - avg. %

42%

70%

43%

68%

27%

23%

36%

27%

11%

3%

9%

3%3%1%

7%

1%

17%

4%6%

1%

% Treatments % Revenues % Treatments % Revenues

Beauty Centers Nails Centers

Initial reconstruction - avg. % Maintenance refill - avg. % Nail polishing or french manicure - avg. %Maintenance refill - avg. % Nail polishing or french manicure - avg. %

Nail art or nail piercing - avg. % Manicure - avg. %

Turnaround

artificial effectDecrease

Growth

Flat

French manicure

begins to be outdated

Coloured, long,

Not too long, natural effect

Gel nails

La “frenchmanicure” comincia ad essere superata

È Superata

Colorate, lunghe, effetto artificiale

Diminuisce

Non lunghissime, effetto naturale

Cresce

Unghie in gelContinua


È Superata


Diminuisce


Cresce



È Superata


Diminuisce


Cresce



È Superata


Diminuisce


Cresce



È Superata


Diminuisce


Cresce



È Superata


Diminuisce


Cresce



È Superata


Diminuisce


Cresce



È Superata


Diminuisce


Cresce


Così?

Il settore NAIL

PRODOTTI PROFESSIONALI

PRODOTTI AT HOME

USE

SERVIZIO RICOSTRUZIONE

FORMAZIONE

PRODOTTI PROFESSIONALI

PRODOTTI AT HOME

USE

SERVIZIO RICOSTRUZIONE

FORMAZIONE

Products and services to

the distribution

Deliveringservices to

the final customer

In storeretail


the final customer

In storeretail

A) TRADITIONAL CHANNEL

(strategy corresponding tothe concentric

diversification)*

B) CHANNEL INNOVATION

(strategy corresponding tothe horizontal

diversification)*

Products and services to

the distribution


the final customer

In storeretail


the final customer

In storeretail

A) TRADITIONAL CHANNEL

(strategy corresponding tothe concentric

diversification)*

B) CHANNEL INNOVATION

(strategy corresponding tothe horizontal

diversification)*

RECONSTRUCTION SERVICES

PROFESSIONAL PRODUCTS

AT HOME USE

PRODUCTS

TRAINING

Key-Stone Research

Client Portfolio

Via Doppi 20

10095 Grugliasco (TO)

Tel. +39 011 311 94 30

Fax +39 011 311 86 69

www.key-stone.it

THE KEY-STONE RESEARCH DEPARTMENT research Qualitative research and focus groups Customer...

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