Research on shoestring budget summary (brandfest 2018)

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Research on a Shoestring Budget

Agenda
Why is research important?
Why we need to conduct our own
research?
How to do it?
What to do once we have the info?

Why research ?
Where is there?
We are here.
Are we there?
Research guides us to set our direction
and to track our progress towards the
direction.

Support to do
something
Excuse not to
do something
Insights &
Tracking
Besides insights and tracking,
marketers also use research as support
for proposals as well as reason for
objections.

Research is not available (e.g. too complex, low potential
for research agencies)
Investment is not in line with strategies (e.g. short product
life cycle, low cost business model)
Research is not justified (e.g. sales are too low)
Info required is too little or too fragmented (e.g. 1 or 2
data but for many categories)

Despite unavailability,
the show must go on.
However, marketers still need to
develop new products and proposals
despite research unavailability.

Where research unavailability ends…
Desktop Research begins.

Most Common Needs
• How big is the market?
• What is my market share?
• What is the penetration rate?
• How do I fare compared to
competitors?
• How else could I improve?

Scope of Discussion
• Usual Sources:
• Company websites
• Customer websites
• Government statistics
Discussion for our session:
Sources that are useful but may
not be popularly known.

CIA World Fact Book

Estimating Market Shares
Market
Size
Users
Market
Share
• Number of users (from internal data)
• Units sold a year = 8,000,000
• Average usage per user = 40 units
• Number of users = 200,000
• Number of obese people (from CIA)
• 15.6% of population
• Population = 31.4 mil
• Number of relevant users = 4.9 mil
• Consumer Share = 4.1%*
*Assumption : Market penetration is extremely high.

Estimating Market Size
• Annual units = 8 mil
• Market share = 4.1%
• Market size = 195 mil*
Market
Size
Users
Market
Share
*Assumption : Market penetration is extremely high.

Estimating Penetration Rate
• Market Size
• Market share = 20%
• Units sold per year = 8 mil
• Market size = 40 mil
• Potential Market Size
• Average usage per user = 40 units
per year
• Obese population = 4.9 mil
• Potential market size = 4.9 x 40 =
196 mil
• Penetration Rate = 40/196 =
20%
Potential
Market Size
Market
Shares
Market Size

How am I doing versus competitors?

Research by Institutions

Trade Organizations

Sample Data from Research Agencies

Knowing competitors better
Knowing competitors

A company going for listing usually invests
in research and also share its internal
information and estimate.

Prospectus
22% market share at RM75 mil revenue.
Market size is estimated at RM341 mil.
If my business is 120 mil, then my market share is about 35%.

Slideshare

22 CONSUMER INSIGHTS 2017
0%
4%
-10%
7%
-2%
Hyper
Super
General Trade
Drug, Beauty &
Pharmacy
Others
%CHANGE FMCG BASKET PER SOCIAL ECONOMIC LEVEL
Value Volume Penetration
RTD Coffee
Drinking Water
Bouillon
Choc/Nut Spread
Cheese
RTD Coffee
Drinking Water
Cosmetics
Hair Treatment
Coconut Milk
-3%
-2%
0%
0%
10%
Spend/Trip
26%
44%
19%
3%
8%
27%
42%
21%
3%
7%
27%
42%
21%
3%
7%
Q1 ‘17
Q1 ‘16
Q1 ’15
Channel Importance - %Value
MALAYSIA
Growth ≤ -0.5% -0.5% < Growth ≤ 5% Growth > 5%
Hyper Super
General
Trade
Drug, Beauty
& Pharmacy
Others
MAT
MAT Q2’16
VS year ago
MAT Q3’16
VS year ago
MAT Q4’16
VS year ago
MAT Q1’17
VS year ago
Total
Low Income
Mid Income
High Income
RTD Coffee
Mask
Drinking Water
Instant Soup
Cosmetics
Top 5 Categories with Positive Impact – MAT Q1’17 vs Q1’16
MAT Q1’17 v Q1’16
Shopping Occasions

Facebook Business

Google Trends

Observation and Interviews
For some business such as retail or counter sales,
each customer who purchases an item goes through our
front liners.
We CANNOT not know who our customers are.

• Transaction Analysis
• Customer Profiles
• Customer Feedback from Company Websites
• Feedback from Sales, Promoters and Other Frontliners
Internal Data

• Watch how customers buy as observer or through CCTV
• Be a frontline staff
• Ask customers for the reason and intention behind their actions
• Have tea or lunch with customers to interview them (note: for large
organizations, even internal staff are good interview targets)
Observation and Interviews

How to make sense out of the data we
have gathered?
Fair Share Index (FSI)
Customer Decision Journey
Segmentation Matrix

Info
Compare with Company
Higher, Lower or Same?
Why? Is it by intention or
accident?
What do I do next?
Fair Share Index (FSI)
Carbonated Soft Drinks contributed 24% to Total Beverage Sales.
Carbonated Soft Drinks contributed 18% to our Beverage Sales.
The contribution is lower than market.
That’s because we sell fewer brands than the market and it is
not our intention to do so.
We plan to increase 2 more brands because the top 4 and 5
brands are not represented in our stores.

Customer Decision Journey
Buy
Experience
Advocate
Bond
EvaluateConsider
Brand
Awareness
Positioning
Differentiation
RTB
WOMA
Distribution
Exposure
Promotion
Quality
Value
After-Sales Service
Platforms
Facilitation
WOMA
Brand
Engagement

Segmentation Matrix
Criterion: ___________________________
Criterion:___________

Segmentation Matrix (Sample)
Low Price Mid Price High Price
Out of Home
At work
At home

FOR MORE INFO
• CONTACT: kua@mindconnect.com.my
• WEBSITE: www.mindconnect.com.my

Research on shoestring budget summary (brandfest 2018)

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