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Student:	Christian	van	’t	Hof	 	 	 	 	 	 										11th	of	January	2016	
Marketing	Experiment	Assignment	
1	Introduction	
This	report	is	about	a	marketing	experiment	for	Viking	Beds	of	Sweden.	This	Swedish	
boxspring	brand	has	just	been	introduced	on	the	Dutch	market	in	the	upper-middle	and	
higher	segment.	The	marketing	will	be	a	TV	advertising	campaign	for	their	boxspring	
type	‘Royal	Viking’.	Since	boxsprings	are	gaining	more	market	share,	these	high	quality	
beds	are	being	the	‘real	deal’.	The	experiment	that	is	going	to	run	will	be	a	before-after	
design	experiment.	Since	there	hasn’t	been	any	brand	exposure	yet,	a	basic	experiment	
won’t	be	working	because	the	city	with	the	TV	ads	will	always	be	selling	more.	
Moreover,	a	full	factorial	experiment	won’t	be	working	either,	because	it’s	about	1	
product	with	the	same	pricing	for	both	cities.	In	this	case,	the	before-after	design	
experiment	will	be	working	by	showing	two	different	ads.	
2	Experiment	Design	
The	variables	in	this	experiment	will	be	independent	as	well	as	dependent.	The	
dependable	variable	will	be	the	amount	of	units	sold	and	the	independent	variable	will	
be	the	TV	advertisements.	
	
This	experiment	will	run	in	the	cities	Laren	and	Naarden	in	the	Netherlands.	These	cities	
are	both	in	the	same	geographical	area,	share	almost	the	same	amount	of	population	and	
have	both	on	average	about	€50,000	income	per	household1,	which	is	almost	the	highest	
in	the	Netherlands.		
	
Both	Laren	and	Naarden	have	above	10,000	inhabitants,	which	is	enough	for	statistical	
significance.	The	entire	cities	will	see	that	TV	ads,	so	this	makes	this	a	valid	experiment.	
	
The	first	round	of	TV	ads	will	run	from	March	till	April	and	the	second	round	of	TV	ads	
will	run	from	May	till	June.	In	the	first	round,	both	cities	will	see	TV	Ad	1.	In	the	second	
round	Laren	will	see	TV	Ad	1	and	Naarden	will	see	TV	Ad	2.	The	lift	in	sales	will	be	
calculated	from	the	differences	between	the	two	periods.	
	
In	terms	of	causality	three	rules	will	at	least	be	applicable,	the	other	one	is	in	this	case	
not	applicable.	The	two	applicable	rules	are	the	first,	second	and	the	third	one:	Change	
in	the	marketing	mix	produces	change	in	sales,	no	sales	increase	when	there’s	no	change	
in	the	marketing	mix	(Round	2,	Laren)	and	the	time	sequence.	In	this	high-end	market,	
competitors	will	probably	respond,	so	that	will	be	the	external	factors.	
																																																								
1 Centraal Bureau voor Statistiek. (2015, December 8). StatLine - Centraal Bureau voor Statistiek. Retrieved
Student:	Christian	van	’t	Hof	 	 	 	 	 	 										11th	of	January	2016	
3	Anticipated	Issues	
3.1	-	2	Issues	to	be	considered	
In	this	experiment	there	could	be	issues.	In	the	Netherlands	people	get	around	May	and	
June,	their	holiday	fee	from	their	jobs,	this	could	increase	their	budget	in	those	months,	
which	could	be	an	external	factor	that	could	affect	the	net	lift.	
	
Another	issue	could	be	our	competitor	Carpe	Diem.	Carpe	Diem	is	also	from	Sweden	and	
has	already	entered	the	market.	If	they	launch	a	new	campaign,	than	this	would	
definitely	affect	the	net	lift	as	well.	
3.2	-	2	Things	the	experiment	demonstrates	
This	experiment	could	point	out	a	difference	in	outcome	of	both	TV	Ads.	It	could	indicate	
which	TV	Ad	would	work	better.	
	
On	the	other	hand,	a	result	of	this	experiment	could	also	indicate	which	city	would	be	
buying	more	products	from	our	company	compared	to	the	other.	If	the	outcome	of	both	
cities	shows	very	different	numbers,	the	most	interesting	city	could	be	appointed.	
4	Experiment	Adaption	
In	this	2nd	version	Viking	is	going	to	show	their	TV	Ads	on	the	Internet.	This	campaign	
will	span	in	the	same	months	in	the	second	year.	In	this	case,	a	full	factorial	experiment	
will	assist	in	providing	more	specific	metrics,	which	can	be	controlled	more	precise.	In	
this	case	the	video	ads	will	be	an	independent	variable	as	well	as	gender.	According	to	
metrics	Sweden,	males	tend	to	buy	these	boxsprings	over	females.	The	dependent	
variable	will	still	be	the	amount	of	units	sold.	
	
This	more	specific	experiment	will	show	more	relevant	information	on	the	gender	of	our	
customers,	which	we	can	use	to	improve	the	targeting	of	customers	by	more	specified	
videos	that	will	be	more	focussed	on	the	differences	in	gender.	The	results	from	this	
experiment	will	be	easier	to	measure	and	to	analyse,	which	saves	the	company	money	
and	gives	the	company	better	results.	
	
On	the	other	hand,	just	like	TV	ads,	it	only	measures	the	people	that	use	the	Internet	on	
their	computer	or	watch	TV.

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Marketing Experiment Assignment - Christian van 't Hof

  • 1. Student: Christian van ’t Hof 11th of January 2016 Marketing Experiment Assignment 1 Introduction This report is about a marketing experiment for Viking Beds of Sweden. This Swedish boxspring brand has just been introduced on the Dutch market in the upper-middle and higher segment. The marketing will be a TV advertising campaign for their boxspring type ‘Royal Viking’. Since boxsprings are gaining more market share, these high quality beds are being the ‘real deal’. The experiment that is going to run will be a before-after design experiment. Since there hasn’t been any brand exposure yet, a basic experiment won’t be working because the city with the TV ads will always be selling more. Moreover, a full factorial experiment won’t be working either, because it’s about 1 product with the same pricing for both cities. In this case, the before-after design experiment will be working by showing two different ads. 2 Experiment Design The variables in this experiment will be independent as well as dependent. The dependable variable will be the amount of units sold and the independent variable will be the TV advertisements. This experiment will run in the cities Laren and Naarden in the Netherlands. These cities are both in the same geographical area, share almost the same amount of population and have both on average about €50,000 income per household1, which is almost the highest in the Netherlands. Both Laren and Naarden have above 10,000 inhabitants, which is enough for statistical significance. The entire cities will see that TV ads, so this makes this a valid experiment. The first round of TV ads will run from March till April and the second round of TV ads will run from May till June. In the first round, both cities will see TV Ad 1. In the second round Laren will see TV Ad 1 and Naarden will see TV Ad 2. The lift in sales will be calculated from the differences between the two periods. In terms of causality three rules will at least be applicable, the other one is in this case not applicable. The two applicable rules are the first, second and the third one: Change in the marketing mix produces change in sales, no sales increase when there’s no change in the marketing mix (Round 2, Laren) and the time sequence. In this high-end market, competitors will probably respond, so that will be the external factors. 1 Centraal Bureau voor Statistiek. (2015, December 8). StatLine - Centraal Bureau voor Statistiek. Retrieved
  • 2. Student: Christian van ’t Hof 11th of January 2016 3 Anticipated Issues 3.1 - 2 Issues to be considered In this experiment there could be issues. In the Netherlands people get around May and June, their holiday fee from their jobs, this could increase their budget in those months, which could be an external factor that could affect the net lift. Another issue could be our competitor Carpe Diem. Carpe Diem is also from Sweden and has already entered the market. If they launch a new campaign, than this would definitely affect the net lift as well. 3.2 - 2 Things the experiment demonstrates This experiment could point out a difference in outcome of both TV Ads. It could indicate which TV Ad would work better. On the other hand, a result of this experiment could also indicate which city would be buying more products from our company compared to the other. If the outcome of both cities shows very different numbers, the most interesting city could be appointed. 4 Experiment Adaption In this 2nd version Viking is going to show their TV Ads on the Internet. This campaign will span in the same months in the second year. In this case, a full factorial experiment will assist in providing more specific metrics, which can be controlled more precise. In this case the video ads will be an independent variable as well as gender. According to metrics Sweden, males tend to buy these boxsprings over females. The dependent variable will still be the amount of units sold. This more specific experiment will show more relevant information on the gender of our customers, which we can use to improve the targeting of customers by more specified videos that will be more focussed on the differences in gender. The results from this experiment will be easier to measure and to analyse, which saves the company money and gives the company better results. On the other hand, just like TV ads, it only measures the people that use the Internet on their computer or watch TV.