The Most Appropriate Form of Market Research - Heineken Beer - Essay Example

? Identify the most appropriate form of market research in a given situation and implement that research Contents Contents 2 Introduction to the Problem 4 Market Research 5 Market Research Objective 5 Market Research Process 5 Market Research Activities 6 Activity 1 6 Activity 2 7 Activity 3 7 Activity 4 7 Activity 5 8 Effects of Different Market Research Campaigns 8 Understanding the right form of Market Research for the Given Situation-500 18 Conclusions and Recommendations 20 References 21 Introduction to the Problem The market for Italy is found to be a growing market for beer products marketed by different branded companies. Several branded beer companies like Heineken, Azzuro and Becks and Nastro have emerged in the scene to compete with each other in regards to gaining an increased market share for their products. In this regard the paper focuses to infer into the reasons which were leading to a decline in the market share of the beer brand Heineken in the Italian region where it once stood as the market leader of beer brands in the premium consumer segment. One of the main reasons that were understood in this connection is the happening of economic recession for which many social activities of the people countered a sharp decline. Further it was found that owing to the rise of the economic recession the main consumer segment that was increasingly affected constitutes the premium segment of consumers. Brand Heineken in this context reflects as have fallen in a trap in not being able to reduce the price of its products to help reach to a mass consumer base in the recessionary market. It is because a reduction in the price of the products may hamper or tarnish its brand image of being a premium product. On the other hand the inability to gain a larger market signified less of marketing and sales revenues which also restricted the brand’s ability to make any significant marketing and promotional investments leading to the problem getting intensified (Cannes Creative Lions, 2011). Having hinted on the problem the market research domain can now consider on deciding on the attributes of the target group of people over whom research would be conducted based on questionnaires and again the budget for conducting the market research activity would be decided upon (Hague and Morgan, 2004, p.21). Market Research Market Research Objective In regards to the above context the company desired to conduct a market research activity which would help in satisfying the subject of the queries created focusing on the stated problem. The main objectives of market research were found to be threefold. Firstly the market research was conducted by the company to help sustain the brand image and market position of the brand in the premium beer market of Italy. Secondly the market research also focused to help sustain the same price for its premium products in the recessionary market. Finally the market research activities were also conducted to help the brand gain a large amount of consumer loyalty than before in the premium beer segment of Italy. Henceforth the market research objectives for enhancement of brand loyalty of the beer brand is found to be subjected to a specific market territory and to a specific consumer group to analyse the change in sales volume and market share (Cooklin et al., 2006, p.48). Market Research Process For the above condition the market research activity that was designed operated based on a threefold step. In the first step the market research team focused on segmenting the entire market into relevant consumer groups consisting of the target consumers. Such division was conducted based on demographic profiles of the consumers such that firstly the consumers in the age group of 18-24 were chosen. However the group for its failure to project the premium set of consumers the target group was based on the consumer segment of age group of 20-30 years who would drink the premium beer. The second focus of the market research activity targeted at helping the old consumers gain their bygone youthful vigour. This projection would help the beer brand become an integral part of socialisation among the premium consumers. In the final step the market research activity further focused in disseminating the corporate ideology to the targeted group of consumers by taking the help of media tools like social media and public relation activities. This strategy helped the company to address the needs of the target consumer groups created previously. Similarly the organising of special type of events also helped in generating different views of the consumers in the Italian premium beer market (Hine and Carson, 2007, p.289). Theoretical insights regarding market research process also support the above activities conducted by the beer brand. It is found that the process begins with defining a research problem, formulating the pattern of the market research to be conducted, the mode of fieldwork needed for the same and the analysis to be conducted based on the results gained (Cant, Strydom and Jooste, 2009, p.158) Below mentioned are the field activities conducted by the brand in the course of the market research. Market Research Activities It is observed that the company to enhance the brand image of its premium product conducted mainly five sets of innovative market research activities. Activity 1 In the first case the revelation of their marketing communication was done to the targeted consumer groups by attracting them to view a musical concert sacrificing a major football event. The craze of the consumers was interrupted in the midst of the session when the company revealed its message. Activity 2 In the second set of activities matured consumer profiles were attracted through the introduction of an innovative lip-gloss in the Italian market which would bear the flavour of the Heineken beer. This helped in meeting the needs of the consumer profiles in regards to socialisation simultaneously enhancing its brand image. Mass awareness of the product was rendered through promoting the economical product via online, video, print and other social networks. Activity 3 The market research strategy in the third case focused on the creation of certain fake romantic videos which were distributed in the market through the support of many retailers. The fake videos released in the market contained in the backdrop the message of the brand aimed at gaining the attention of the consumer groups. Activity 4 In another set of market research activities conducted based on direct mailers to help invite the target consumer groups to view a fake romantic film which was duly interrupted by the marketing message of the brand. In addition free samples were rendered to the viewers who waited to view an action film. Activity 5 The fifth market research strategy enabled by the beer brand was conducted through the use of television media where commercials were created to help create mass consumer awareness for the premium beer product. Effects of Different Market Research Campaigns The above market research activities helped the beer brand in enhancing both its brand identity amidst its competitors and also in augmenting the market share in the Italian premium beer market. The brand awareness for the product further increased in regards to its competitors in the premium beer segment with the inception of the campaigning activity. It is reflected in the graph below. Figure 1: Reflecting the rise in Brand Image and Brand Consciousness of Heineken Beer (Source: Cannes Creative Lions, 2011, p.11) Similarly other effects that took place in regards to the market research activities conducted to raise consumer awareness for the beer brand reflected a huge rise in the volume and value shares of the product amidst its competitors. This rise in the above parameters after conducting of the campaigning activities can be reflected hereunder. Figure 2 (Source: Cannes Creative Lions, 2011, p.12) Figure 3 (Source: Cannes Creative Lions, 2011, p.13) Again both the value of the brand’s market shares and sales also reflected a rise in regards to their actual position after the mass campaigning measures taken. The impact on such bottom lines can be reflected hereunder through the use of the following graphs. Figure 4 (Source: Cannes Creative Lions, 2011, p.18) Figure 5 (Source: Cannes Creative Lions, 2011, p.18) The rise in both the market share and brand value of the premium beer product is reflected in the above graphs after the conducting of the campaigning activities. It is observed that the rise in the sales value and market share for the beer brand surpassed the expectations for the same reflected through the trend line in the following graph. Figure 6 (Source: Cannes Creative Lions, 2011, p.19) The market research activities further confirmed that the rise in the market share or volume for the Heineken brand of beer product in the market did not happen owing to any change in the price situations. Graphs rendered shows that where competitors like Beck and Nastro Azzurro had a decrease and increase in the level of pricing evaluated along the trend line the pricing features for Heineken reflect a somewhat static picture. Though large amount of sampling and discounted distribution strategies were conducted yet the brand did not require bringing any change in the price paradigm which can be shown as follows. Figure 7 (Source: Cannes Creative Lions, 2011, p.16) The drinking preferences of the consumer profiles aging between 25-34 years measured along Heineken and other premium beer brands in a three month period reflected a rise by around 13 and 8 percent in regards to the male and female consumer groups while for other brands market research conducted showed potential decline. The same can be reflected through the graph given under. Figure 8 (Source: Cannes Creative Lions, 2011, p.13) Further the enhancement of the brand image of Heineken in respect to other beer brands was also measured based on certain parameters. The results based on the stated parameters reflect a positive market image of the Heineken brand in regards to other brands competing in the market which can be shown as under. Figure 9 (Source: Cannes Creative Lions, 2011, p.15) Another graph rendered in regards to the above discussion reflects the rise in the brand preference parameters for Heineken in regards to its potential competitor Becks measured along the period 2008 to 2010. Figure 10 (Source: Cannes Creative Lions, 2011, p.15) Understanding the right form of Market Research for the Given Situation-500 The effectiveness of the above market research activities can be observed through the rise in considerable return on the investment made on the marketing, promotion and distribution activities. It is observed that the creative pursuits enabled in the market research paradigms by not involving mere questionnaires but rather through the involvement of both visual and audio media to a great extent to help the target group get the essence of the brand’s message helped to gain more positive views from the consumers. It is observed that the different forms of market research activities conducted on an innovative mode over the focused consumer groups helped the firm to gain return on investment to the extent of 1.83. The creative pursuits taken by the firm through the collaboration of different types of media like visual and print not only showed a new approach to market research but also enhanced the utility of the expenditure conducted. The theoretical insights reflect that market research activities which need to be conducted for helping in the enhancement of the brand through the spreading of messages framed in that accord must first focus in highlighting the target consumer profiles for which it is made. Thus in the above case it is found that before strategising on the ways of delivering the brand message the market research was conducted on dividing the consumer groups into target consumer base of age groups 25-34 years. This helps in the enhancement of the marketing communication ventures taken by the firm (Davis, 2009, p.178). Further theoretical insights also reflect that innovative nature of market research activities are taken by the firm through the help of special events which helps in the enhancement of the interaction of the company to its focused consumer base. Such interactions can be further enhanced through the use of online, print and visual media which helps in promoting the message of the brand to a large consumer base and thereby also helps to gain potential views of the target groups. Through the help of the above market research programs the company can also go for rendering of free samples of the products to the consumers which thereby help in enhancing the dimensions of consumer loyalty to the concern (Fletcher, 2004, et al., p.291). However in regards to the data analysis for studying the relative performance of the brand in regards to other brands operating in the same sector it is recommended that a proper set of data analysis techniques like the perceptual mapping can be drawn into consideration. The use of perceptual maps would help reflect the position of the product in the market in relation to other products of other brands in the same category. Similarly the use of preference maps to study the consumer preference patterns for the brand in relation to other brand can also be used (Cravens and Piercy , 2009, p.275; Hyman and Sierra, 2009). In the above case the use of preference maps is reflected to show the consumer loyalty patterns for Heineken in regards to other competing brands and thus holds significance. Conclusions and Recommendations The market research activities conducted by the company producing the Heineken brand to survey the amount of consumer loyalty for the beer brand in the situation of grave depression without disturbing its premium image reflects large amount of innovation. It does not take resort of conventional marketing research activities based on designing of questionnaires and thereby taking interviews based on that. Rather it involves encouraging the consumers to visit large events conducted by the company where the message of the brand is effectively generated. However the target consumer group which is taken amongst people belonging to the age group ranging from 25-34 years can be enlarged both on the lower and upper limits. This practice would help to get a more enhanced view of the consumer loyalty dimension regarding the brand. References Cant, M.C., Strydom, J. W., and Jooste, C. J. (2009). Marketing Management. Juta and Company Ltd. Davis, J. A. (2009). Competitive Success, How Branding Adds Value. John Wiley and Sons. Fletcher, Richard et al. (2004). International e-business marketing. Cengage Learning EMEA. Cravens, D., and Piercy, N. (2009). Strategic Marketing 8E. Tata McGraw-Hill Education. Cannes Creative Lions. (2011). Heineken Italia: Are you still with us? Cooklin, G., et al. (2006). Introduction to clothing manufacture. Wiley-Blackwell. Hague, N., and Morgan, C. (2004). Market research in practice: a guide to the basics. Kogan Page Publishers. Hyman, M., and Sierra, J. (2009). Marketing Research Kit for Dummies. For Dummies. Hine, D., and Carson, D. (2007). Innovative methodologies in enterprise research. Edward Elgar Publishing. Read More