BTEC商务市场研究

Criteria reference

To achieve the criteria the evidence must show that the learner is able to:

Task no.

Evidence

P1

Describe types of market research

1

Report

P2

M1

D1

Explain how different market research methods have been used to make a marketing decision within a selected situation or business

Explain, with examples, how different market research methods are appropriate to assist different marketing situations

Evaluate the market research method used by a selected organisation

2

3

4

Report

P3

M2

Plan market research for a selected product/service using appropriate methods of data collection

Explain the reasons of choosing the particular method of data collection for a selected product or service

5

6

ResearchPlan

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Qualification

BTEC National Business

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Assignment title

1. Research theory and planning

Purpose of this assignment

1 Understand the main types of market research used to make marketing decisions

2 Be able to plan research

Scenario

Heinz have been pleased with the launch of their new Gluten Free products and their Frozen Meals, but they want more! As their founder Henry J Heinz pointed out ‘to do a common thing uncommonly well brings success’ .

The Marketing Manager has been to see you and stated that:

‘Our commitment to producing great tasting food from quality ingredients, without the use of artificial colours, flavours and preservatives is part of our Company's philosophy.’

Can you consider what new products would complement their existing ones?

Produce a Market Research Report that deals with the following tasks:

Task 1

Describe the main types of market research.

For each type you should give examples and briefly outline the benefits of using this method.

Make sure that you include:

•     Primary and secondary

•     Qualitative and quantitative

•     Internal and external

You need to explain all the different types of research listed below.

Understand the main types of market research used to make marketing decisions

Primary research: observation; experimentation; surveys, e.g. face-to-face, postal, email, telephone; e-marketing research; focus groups; panels; field trials; piloting; appropriateness of each method e.g. fitness for purpose, cost, accuracy, time, validity, response rate

Secondary research: internal sources e.g. data records, loyalty schemes, EPOS (electronic point of sale),website monitoring, e-transactions, accounting records, production information, sales figures, sales personnel, Delphi technique – the use of experts within the area that is being researched who can forecast the success of a product/service; external sources e.g. internet, Government statistics, libraries, universities, company reports, specialist agencies e.g. Mintel, Data stream, Dun & Bradstreet; trade journals; criteria for selection e.g. checking of validity; use of ICT applications e.g. storing, organising, retrieving and reporting data

Secondary research involves the summary, collation and/or synthesis of existing research rather than primary research, where data is collected from, for example, research subjects or experiments. Data records, loyalty schemes, EPOS (electronic point of sale),website monitoring, e-transactions, accounting records, production information, sales figures, sales personnel are all the data collected from the daily operation within the company. Delphi technique refers to a structured communication technique, originally developed as a systematic, interactive forecasting method which relies on a panel of experts. External sources refers to data with authority, validity and reliability collected form other institution.

Qualitative and quantitative research: importance and use of each; triangulation

Marketing strategies and activities: e.g. strategic, technical, databank, continuous, ad hoc research

Qualitative research refers to examining whether the research object have some specific characteristics, and whether there is relationship between them, etc by observing, experiments and analysis.

Quantitative research is to represent the problem or phenomenon by number or amount , and then to analyze, test, and explain the problem.

If quantitative research solves the problem of "what is it?",  qualitative research solves the problem of "why is it? ".

Triangulation is the process of determining the location of a point by measuring angles to it from known points at either end of a fixed baseline, rather than measuring distances to the point directly.

Marketing strategy is the process of the enterprise setting the customer needs as the starting point, obtaining information of customer demand and purchasing power , expectations of the business community based on experience, then making out some plans to organize various business activities, through product strategy, pricing strategy, channel strategy and promotion strategy to provide customers with satisfactory products and services to achieve business goals.

Marketing technical refers to techniques used in setting marketing strategies. Data bank means the factual basis to make marketing strategies.

To achieve continuous success in the competitive market place, a company needs to carry out continuous marketing research to obtain necessary information to make market decisions.

This provides evidence for P1

Task 2

Explain how different research methods have been used to make a marketing decision about whether there is a market for a new Heinz product.

Research into competitors products

1. Observation: pay visits to various supermarkets that may sell Heinz’ and its competitors’ products to observe and record how many kinds of products they sell, what are they and how much they cost

2. Interview face to face: to talk to the purchase person who is responsible for the food category in the supermarket  to get some information about how many of each brand’s product it sell.

3. Interview fact to fact: to talk to the competitor’s suppliers to know about the sales and price.

4. E-marketing research: since online business become more and more convenient and important for customers, it is necessary for Heinz to look through the competitor’s online business shop and all the major e-commerce platform on which competitors  may sell products. Then with the help of statistics tool provided by the e-commerce platform to see the sales data of each product.

5. Refer to the trade journal or take part in the industry conference to see whether there’s new products being launched

Research into how many people eat Gluten free products and frozen meals

1. Look up Heinz’ internal sources including data records website monitoring, e-transactions, accounting records, production information, sales figures, sales personnel to know how many Gluten free products and frozen meals it selled

2. Refer to the external sources including internet, Government statistics, competitor’s  reports, especially specialist agencies who is professional in marketing research

Research into the prices of these products

Observation, Interview face to face with sales person in supermarkets and suppliers, refer to e-commerce platforms

Methods:

Primary research: surveys, e.g. face-to-face, postal, email, telephone; e-marketing research; focus groups; panels; field trials; piloting; appropriateness of each method

Secondary research: internal sources e.g. data records, loyalty schemes, EPOS (electronic point of sale),

website monitoring, e-transactions, accounting records, production information, sales figures, sales

personnel, Delphi technique; external sources e.g. internet, Government statistics, libraries, universities,

company reports, specialist agencies e.g. Mintel, Datastream, Dun & Bradstreet; trade journals;

You should show how different types of market research have been helpful in identifying whether there would be a market for a new product for Heinz.

Show how the different research methods, particularly quantitative and qualititative, complemented each other

Consider appropriate data collection methods and suitable marketing strategies.

Add to your report for Task 1 and 2 and consider:

Task 3 (M1):

Explain, with examples, how the different research methods that you have identified are appropriate to enable Heinz to identify whether the market is of sufficient size for a new product(s).

Make sure that you provide examples of ways in which the research methods could be used to identify the target market, what customers are looking for and whether demand would be sufficient. Justify the use of each method of data collection and sampling in terms of the sorts of results it could provide.

1. To identify the target market, we should find out the target customers of the new product, namely gluten free products and frozen meals. For gluten free products, people with obesity and those long for health will be its customers. For frozen meals, white-collar workers may be its customers. We should refer to external sources such as government statistics about obesity and food structure to find out the target market.

2. To further demonstrate the findings from external sources, we have to show some data from internal sources like sales data.

3. Carry out a survey in the supermarkets or convenience stores in the targeted market on what customers are looking for. These places are the frontline that can contact directly with customers. We should aim at finding whether they like gluten free products and at what kind of situation they need gluten free products. According to customers’ needs, we can better research and development the new product.

4. Discover two or three kinds of products customers may like, produce a batch of them and put them in the pilot shores to receive the customers feedback and then chose the best for the target market.

Task 4 (D1 part 1)

Evaluate the market research methods used by Heinz. What are the good and bad points? How could they be improved? Make clear recommendations for improving research methodology and how to refine strategies for market research and marketing strategies themselves.

This provides evidence for P2 M1 D1 (part)

Heinz wants you to carry out a thorough investigation into the viability of new products before they consider investing any money into a potential new range of products.

You need to create a research plan that sets out:

•     The research objectives you want to focus on

•     The methods you will use to carry out the research

•     A justification of the chosen research methods explaining why you have rejected alternatives

The plan should identify the target audience, and the timing of the use of the research methods and who will be  responsible for carrying out the research.

Research Plan Draft

Background:

Heinz have been pleased with the launch of their new Gluten Free products and their Frozen Meals, but they want to develop more new products of this kind to increase sales.

Objectives of the research:

to find out the viability of new products

Content of the research:

(1)to identify the current market situation of gluten free product and frozen meal, including the development trend and competitors’ latest situation (2)find out the targeted markets and potential customers’ needs (3)to find out the market size of the new products (4) to find out the most suitable prices of the new products (5) to determine the most effective marketing or advertisement way of new products

Methods of data collection and timings

For content (1), use the external sources such as government statistics and competitors’ financial report or suppliers’ data to find out the latest situation of competitors on the gluten free product and frozen meals. Combined with the internal data of Heinz, analyze the development trend and future critical point of this kind of products in order to set the direction of new products. The time needed for this stage is 10 days.

For content(2), combine the external sources like government statistics and competitors’ financial reports with Heinz’ internal data sources to determine the targeted and potential market. Then carry out a survey in the supermarkets or convenience stores to identify the potential customers’ needs. The time needed for this stage is a month.

For content(3), use the survey and anticipation method to anticipate the market size of new products. This time needed for this stage is 10 days.

For content(4), observe the competitor’s product price and calculate the most suitable price for the new product. This time needed for this stage is 5 days.

For content(5), to analyze the customer groups preference and advertisement acception in order to decide which way of marketing to use. This time needed for this stage is 20 days.

Task 5 (P3):

Plan research for a new Heinz product using appropriate methods of data collection.

Set out a clear plan using clear headings.

Decide on the methods that are most valid for this particular piece of research and make sure that you justify their use.

Research Plan Outline

Background:

Heinz have been pleased with the launch of their new Gluten Free products and their Frozen Meals, but they want to develop more new products of this kind to increase sales.

Objectives of the research:

to find out the viability of new products

Content of the research:

(1)to identify the current market situation of gluten free product and frozen meal, including the development trend and competitors’ latest situation (2)find out the targeted markets and potential customers’ needs (3)to find out the market size of the new products (4) to find out the most suitable prices of the new products (5) to determine the most effective marketing or advertisement way of new products

Methods of data collection and timings

For content (1), use the external sources such as government statistics and competitors’ financial report or suppliers’ data to find out the latest situation of competitors on the gluten free product and frozen meals. Combined with the internal data of Heinz, analyze the development trend and future critical point of this kind of products in order to set the direction of new products. The time needed for this stage is 10 days.

For content(2), combine the external sources like government statistics and competitors’ financial reports with Heinz’ internal data sources to determine the targeted and potential market. Then carry out a survey in the supermarkets or convenience stores to identify the potential customers’ needs. The time needed for this stage is a month.

For content(3), use the survey and anticipation method to anticipate the market size of new products. This time needed for this stage is 10 days.

For content(4), observe the competitor’s product price and calculate the most suitable price for the new product. This time needed for this stage is 5 days.

For content(5), to analyze the customer groups preference and advertisement acception in order to decide which way of marketing to use. This time needed for this stage is 20 days.

personnel assignment

market research budget

Task 6 (M2):

Explain the reasons for selecting the particular method of data collection for Heinz.

Make sure that you explain clearly why the methods you have chosen are likely to produce valid data.  Explain how the different methods complement each other and are likely to provide additional insight into the research topic.

For content (1) identify the current market situation of gluten free product and frozen meal, including the development trend and competitors’ latest situation, these are all external environment to decide whether Heinz should develop new products, so we should use the external sources such as government statistics and competitors’ financial report or suppliers’ data to find out the latest situation of competitors on the gluten free product and frozen meals. But external data doesn’t fully show the verification of the result, so we should combine the external data with the internal data of Heinz, analyze the development trend and future critical point of this kind of products in order to set the direction of new products.

For content(2), find out the targeted markets and potential customers’ needs . Combine the external sources like government statistics and competitors’ financial reports with Heinz’ internal data sources to determine the targeted and potential market. Then carry out a survey in the supermarkets or convenience stores to identify the potential customers’ needs. Because these places are the distribution center from Heinz to customers and allow the company directly contact with its customers. And a questionare designed to find out the customers’ needs is the critical process to development new products.

For content(3), use the survey and anticipation method to anticipate the market size of new products. A well-design survey can tell us how big the market is for the new products.

For content(4), observe the competitor’s product price and calculate the most suitable price for the new product. The prices of competitors products are open for the public, and the survey also discover people’s feedback to the existing products, we should calculate the prices for the new products based on these data.

For content(5), to analyze the customer groups preference and advertisement acception in order to decide which way of marketing to use.

Additional notes

Be able to plan research

Stages: brief; defining the issue; setting objectives; planning data to be collected, eg methods of collection,

who is to collect it, timings; types of data, eg internal, external, secondary, primary; target population

Research stages: proposal/brief; defining objectives; planning; forecasting; collection of data; analysis and

evaluation of data; presentation of findings; making recommendations; re-evaluation of marketing activities

Purpose of research objectives: understand customer behaviour, buying patterns, preferences, satisfaction,

sales trends; brand awareness; advertising awareness; product development success; new product

opportunities; changes in the market; emergence of new markets; PESTLE (political, economic, social,

technological, legal, environmental); competitor activities

This provides evidence for P3 M2

Evidence checklist

[Summarise evidence required, e.g. ‘leaflet’, ‘presentation notes’ etc.]

 [tick boxes]

Types of Market Research Report

Evaluation of Market Research methods

Market Research Plan

All work referenced/sourced/page numbered

Sources of information

Textbooks

Dibb S, Simkin L, Pride W M and Farrell O C – Marketing Concepts and Strategies (Houghton Mifflin (Academic, 2005) ISBN 061853203X

Hall D, Jones R and Raffo C – Business Studies, 3rd Edition (Causeway Press Ltd, 2004) ISBN 1902796837

Hill E – Foundations in Marketing (CIM Publishing, 2001) ISBN 0902130994

Proctor T – Essentials of Marketing Research (FT Prentice Hall, 2005) ISBN 0273694944

Websites

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