This report gives a marketing research process of a product.

1. Indian Institute of Management Sirmaur
Marketing Management – II Project
Marketing research process of a product
Submitted to:
Prof Anirban Chakraborty
Submitted by:
Krishna Bhawsar(07)
Rahul Javkhedkar(014)

2. Acknowledgement
In a span of time, few achievements of note have been the product of effort of one person.
Instead, they were been accomplished through efforts of group. Similarly, the outcome of our
Project report would have been impossible without the cooperation, diligence, understanding
and encouragement of number of people. First, we are thankful to all those known and unknown
entities that helped us throughout our project work.
We would like to express our deep sense of gratitude to Prof. Anirban Chakraborty for
giving us the required guidance and support and motivation required during our project work.

3. Table of contents
Contents
Acknowledgement..............................................................................................................................2
Table of contents................................................................................................................................3
Introduction.......................................................................................................................................4
Product description.........................................................................................................................5
Name:............................................................................................................................................5
Segmentation.................................................................................................................................5
Competitive scenario ......................................................................................................................6
Value proposition ...........................................................................................................................7
Brand.............................................................................................................................................7
Integrated Marketing CommunicationPlan..........................................................................................9
 Target Audience......................................................................................................................9
 Communications objective.......................................................................................................9
 Message Strategy ....................................................................................................................9
 Creative strategy .....................................................................................................................9
 Selection of marketing channels...............................................................................................9
 Establishing the budget..........................................................................................................10
 Measuring results..................................................................................................................10
Media reach.................................................................................................................................11
Managerial decision problem............................................................................................................12
Information Need.............................................................................................................................12
Research design................................................................................................................................13
Sampling plan...................................................................................................................................13
Questionnaire ..................................................................................................................................14
References.......................................................................................................................................15

4. Introduction
 There are gaming arcades all over India. But, almost all of them cater to only specific need, i.e.
physical games e.g. bowling alley, carom, pool etc. and virtual games that are played on a
screen.
 Various genres of virtual games are as follows:
1. Action
2. Action-adventure
3. Adventure
4. Role-playing
5. Simulation
6. Strategy
7. Sports
8. Other
 At the same time, there is new technology that is taking world gaming by storm. This
technology is called as “Virtual Reality” (VR).
 It can be referred as “Immersive media” or “Computer simulated reality”. It reproduces an
environment that recreates a physical vicinity in places in this present reality or an envisioned
world, permitting the client to connect in that world.
 Virtual substances artificially make sensory encounters, which can incorporate sight, touch,
hearing, and smell.
 Here is a company that is on the forefront of it all is Oculus Rift.
1. It manufactures various VR gears that are now considered as hot property in gaming world.
2. They have launched their product i.e. the rift. It is available for pre-order and will be shipped in
early April 2016.
3. It has to be imported from USA as it is not available in India.
 There is another company which is all ready to ride the wave that is Oculus Rift. This company
is called Virtuix Omni.
o This company provides all the platforms and various peripherals for gaming purposes.
o It works perfectly well with Oculus Rift.
o These products help create unprecedented sense of engrossment that won’t be felt through just
sitting down or standing up.

5.  Using products of these companies as a building block, we have decided to launch a new
service i.e. “Virtual Reality Gaming”.
 The combination of all of these would constitute as a VR gaming experience.
Product description
 The product category that we chose to discuss is services. The subcategory of that is chosen was
personal services. We had chosen that because for any service to be successful, that has to be
really close to the consumers.
 For a unique perspective, we had chosen a service that has just barely launched in India.
 We have selected “Virtual Reality Gaming Arcade” as our centre of marketing study.
 There are some malls in India that provide some fleeting experience of VR. Even though they
technically constitute as VR, their experience cannot be compared to the actual feel of Oculus
Rift.
Name:
 The name for our service is “VeRtigo VR Gaming Centre”.
 The name is based on literal meaning of the word Vertigo.
 It means that the person feels as if all the objects and the surroundings of the object are moving
around; but actually they are still.
Segmentation:
 Major segmentation is done on the basis of geography.
o Majority of the prospective consumers would reside in a city with high population.
o Therefore, when we consider India, we only consider consumers from Tier-I cities like Metro
cities and other big cities, e.g. Pune, Hyderabad, Bengaluru etc.
o It is not as if there would be no prospective consumers in other cities; but the sheer number isn’t
good enough.
o To make the business viable, it is of utmost importance that scales of economies are considered.
Therefore, these other consumers are not recognized.
 Next basis for segmentation is quite standard. The segmentation is done by classifying the
Indian market by using an index called as Socio-Economic Classification (SEC).
o This is based on combination of two factors:

6.  The education level and
 The occupation of the head of the household.
o Here only urban sector is considered according to previous discussion. Therefore, here only A1,
A2, B1 and B2 are considered.
 Other segmentation is done on the basis of demography. The customers who would flock the
arcade would be young.
o Therefore, the segmentation would be done depending on the age of the consumers.
o All the consumers should theoretically lie between the segment of either 12-19 years or 20-35
years.
Competitive scenario:
1. Direct competitors:
a. You can create a VR headset for yourself using
i. The Do-It-Yourself (DIY) kit from online stores such as Amazon.com, Flipkart.com etc.
ii. Then you can download android app for it like Google cardboard and you will be able to
experience VR.
This doesn’t even come close to the actual experience of Oculus Rift; but it is enough for
discouraging some techno-savvy low income customers.
b. If there is no VR experience for consumers, they would either sit at home to play with their own
gaming devices.
c. They would go out to play at the gaming arcade with various physical or virtual options that
have been described at the introduction.
d. There are also other alternatives for them like live games such as
i. Paintball,
ii. Laser-tag,
iii. Mini-golf etc.
These games are not full-fledged games that could be considered as sports. Thus, these can be
reckoned as alternatives.
2. Indirect competitors:
a. These customers might consider

7. i. Watching TV,
ii. Going to movies,
iii. Surfing on internet etc. as other indirect alternatives.
b. Other options might be various past-times and hobbies like
i. Listening to music,
ii. Dancing,
iii. Go to amusement parks,
iv. Other sports,
v. Games etc.
Value proposition:
 We are offering a unique experience of Virtual Reality gaming which hasn’t been launched in
India yet.
 While there are some low-end options available, for premium experience, you would have to
visit ViRtigo.
Brand:
VeRtigo
Target customers:
Consumers interested in lifestyle products.
 Customer benefits:
 Points of difference:
1. Premium experience of Virtual reality is provided. It is a unique experience.
2. It is provided by our company by using highest possible standards.
3. This is a high-end options.
4. This if considered buying on a personal level, would turn out to be very costly. Also, because of
the fast moving technology there would be constant changes in the hardware.
5. There is a need for such service. There are no providers for this service.
6. The service has its own aesthetic appeal.
7. This is a new technology that is capturing minds.

8.  Points of parity:
1. It is a great source of entertainment for users.
2. It is a superb way of passing time.
3. It is a value-for-money.
4. People really get immersed in it. They get a kick out of it.
Reasons for success of brand:
1. The service hasn’t been launched in India because there hasn’t been any good that would be
able to provide such a service.
2. This is a really unique idea as there aren’t many VR gaming arcades in world, let alone in India.
3. Once a customer uses the service, then barring some small percentage, they would like the
experience.

9. Integrated Marketing Communication Plan:
 Target Audience:
It is young audience of age 12-35. Mostly males.
 Communications objective:
o Currently, there is no established service that provides such service. Therefore, our service now
satisfies the need of the prospective customers.
o Also, there is no awareness amongst our audience about our intention of entering in the market.
Hence, it is imperative that we make sure that more and more consumers should be aware of our
brand.
 Message Strategy:
o VeRtigo is appealing for gamers and newbies alike. This is an exciting new technology which
has revolutionized the world and now it is about to dazzle India.
o It is a very contemporary service where we use state of the art hardware for the satisfaction of
our customers.
 Creative strategy:
o Informational appeal:
This is a one-of-its-kind unique experience that has been brought to you by VeRtigo. This
service provides state of the art feel of VR by using latest gadgets from rock stars of VR world.
This would make you immerse in the stunning world of VR and make you marvel.
o Transformational appeal:
This is a very hip way of spending time. This service is a premium service for luxurious
experience. This also provides thrill and a sense of adventure to you.
 Selection of marketing channels:
o Personal communications channels:
Most important part of this channel is our social media pages. We are going to use various
social media like Facebook, Twitter, Tumblr for propagation of our messages. The primary
objective of these pages would be to spread awareness amongst people.
There would be another way of reaching out to our target audience. We would distribute our
fliers to them when people might enter the mall and ask them to visit us.
o Mass communications channels:

10. There would be a product launch that should create a huge buzz. There would be print ads on
local newspapers about our impending entry. We would try and organize a competition for
gamers at local collages in which anyone can participate. We could also sponsor events there.
 Establishing the budget:
We will be using task and objective method, which our goal is to have 1000 unique
customers in the first year. Our promotional target would be INR 3,00,0000 of which about 50%
would be used for our IMC budget.
Budget Element Percentage of Budget
Print Media Advertising Cost
(inclusive production cost)
*Hand-outs
*Digital (Social media promotions)
*Public Relationship
*Sales promotion (Competition,
sponsorship, Product launch etc.)
60% (2,40,000)
5% (15,000)
5% (15,000)
5% (15,000)
10%(30,000)
Other IMC Cost 10%(30,000)
Evaluation and Control 5% (15,000)
Total Cost 100% (3,00,000)
 Measuring results:
Month Reach Frequency Weight Continuit
y
Recenc
y
Cost
April
2016
High High High High Low High
May
2016
High High High High Low High
June
2016
High High High High Low High
July
2016
Low Low Low Low High Low
August
2016
Low Low Low Low High Low
September
2016
High High High High High High

11. October
2016
High High High Low High Low
November
2016
High High High Low High Low
December
2016
High High High High High High
Media reach:
Gross Rating Points = (Reach * Frequency * Months).
Effective Rating Points = (Effective Reach * Frequency * Months).
Timeline
Reach
(+1)
Effective
Reach
(+3) Frequency GRP ERP Continuity
April -
June 2016 80% 60% 5 1200 900 Continuous
July -
September
2016 70% 40% 3 630 360 Pulsing
October -
December
2016 80% 50% 4 960 600 Pulsing

12. Managerial decision problem
1. Should service be launched?
2. Which customers should be targeted?
3. What should be the price?
4. How should the advertising be done?
Research problem:
1. What is customer preferences and behavioral intensions for the proposed new service?
2. What is the demographic and psychographic profiles of customers of vertigo? Does it differ
from profile of customers of competing stores?
3. What is the purchasing parity of the audience?
4. What is the effectiveness of the advertisement?
Information Need:
 To address the research problem, whether our service should be launched, we will require
information about people that whether they are aware of the virtual reality gaming, whether they
would like to play games or not? We need to know the demand of the gaming in the market, this
can be done by putting a proper question in questionnaire. To launch the service we need to
know that will it be profitable or not.
 To address the research problem of target customers, we need to know that what kind of people
would like to play Vertigo, in which age range they lie. What are their lifestyles (psychographic
segment)? What kind of behavior people show to the new technology like virtual reality
gaming? Is there a geographic or demographic variance in the possible customers of vertigo?
 To address the problem of price, we need to know what could be the amount of money people
spend on their leisure and entertainment activities. What are the income of people? What is the
purchasing power of parity of people? What are the consumer surplus and their willing to pay?
How much people or targeted customers spend on the gaming? Is there a seasonal behavior in
these entertainment activities like vertigo is likely to see more customers in vacations and
holidays? So that it can be charged more in holidays and less in workdays. How much profit we
will get at certain price.

13.  To address the advertisement research problem, we need to know that what kind of
advertisements affects the most to the people lying in our targeted segment. Prices of different
advertisements as compared to our ability to spend.
Research design:
 We will use exploratory research design methodology in our service. Because our information
needs is loosely defined, research process is flexible and unstructured, sample size is small and
non-representative and analysis of data is qualitative.
 We will do secondary data qualitative research analysis because of its low collection cost and
short collection time.
 We will take a small sample size and will conduct a survey with the help of questionnaire which
is given below.
 Our questionnaire designed would help us to answer our research problems and we will be able
to retrieve information need.
Sampling plan:
 Target Population: Our total population is all our targeted customers. All the people who will
be using our service.
 Sampling Frame: Our sampling frame would be all the people visiting mall. We will conduct
sampling survey in a mall on different days to study the impact of workdays and holidays.
 Sampling Technique: We will use ‘sampling without replacement’ sampling technique, because
it would be difficult to survey the same customer again.
 Sample Size: Since it is a test-marketing study so we can use 300-500 of customers. So we will
take 400 as a sample size. This would consists of various categories in terms of gender,
education, occupation etc.
 Execution: We will feed all the entries satisfying our information needs in computer. In order to
meet the sample size of 400 we need to interact with a larger number than 400 because of the
targeted respondent’s non-availability.

14. Questionnaire:
Please tick one of the following:
1. Do you know about Virtual reality games?
Yes No
2. What is your age in years?
Below 6 6-11 12-19 20-34
35-49 50-60 above 60
3. What is your gender
Male Female Transgender
4. Do you like to play video games?
Yes No
5. What is your occupation?
Worker shop owner Businessmen Student others
6. What is your education?
Illiterate school up to 4 years
School between 5 and 9 years SSC/HSC Non graduate
Graduate Post-graduate
7. How often do you come to mall in a month?
Less than 2 3-7 8-14 15 or more
8. How much you spend for entertainment?
Less than 500 501-1000 1001-3000
3001-5000 5000 or more

15. References:
1. Dash, S. and Malhotra N.K. (2016), Marketing Research- an applied orientation, 7e. Person.
Delhi.
2. Kotler P, Keller KL, Koshy A, and Jha M. (2015), Marketing Management, 14e. Pearson. Delhi.
3. Retrieved from https://www.oculus.com/en-us/rift/
4. Retrieved from http://www.virtuix.com/products/
5. Retrieved from http://www.indiamart.com/snglobal/virtual-gaming-machine.html
6. Retrieved from http://www.yantramstudio.com/virtual-reality.html
7. Retrieved from https://www.esomar.org/knowledge-and-standards/market-research-
explained.php