IMRB Research Proposal -Floriana Group.pptx

IMRB Research Proposal -Floriana Group.pptx

1. A research proposal for launching a new brand of natural, sandalwood based cosmetics Prepared for : Floriana Group Prepared by : IMRB International July/ 2009 SB/SS/SG/HB 1

2. About the client -Floriana Group Incorporated in 1993, the Floriana Group has taken a growth route that is matched by few The diversification of business interests range from essential oils, herbal oils, speciality perfumery compounds production and personal care products to marble mining and processing The Group's venture in retail set the trail blazing with a unique and main ingredient in its personal care brand, lambency: Sandalwood, in oil and powder form Floriana Group is also India's largest manufacturer of pure sandalwood oil, operating India's largest sandalwood oil manufacturing facility at Sampla, Haryana. They own Lambency Chandan Sparsh which is a chain of exquisitely designed spas that offer a wide gamut of beauty and spa services of international standards to the common man at affordable prices. 2

3. The research context Floriana Group is planning to launch a new range of products - natural & sandalwood based cosmetics, toward the end of this year In this context, client wants to understand how research can help in the following areas: Brand Development Product Positioning Communication Development Product Packaging Product Testing The rest of this document outlines the research approach, timelines & investments to meet Floriana Group’s current research needs 3

4. Our understanding of the business tasks in front of Floriana 4

5. Key questions for the business 1 Ingredient What is sandalwood/ chandan all about What all does it stand for Which dimension of it can we leverage in the context of cosmetics - more herbal or more glamour Brand What should be the name of the brand such that it conveys the USP – natural / chandan based Category / Consumer Who is this person psychographics / demographics for such a cosmetics range What skin care need should this range of cosmetics service Beauty, natural , healthy , fresh glow , radiance , shine etc. Given that the portfolio has different products what need should we focus upon across the different product ranges Product What should be the product mix What all products can a brand based on chandan own 5

6. Key questions for the business 2 5. Communication What should the communication for this brand encapsulate What should we focus upon what should be the tonality of our communication 6. Packaging What kind of packaging should the communication for this brand encapsulate What should we focus upon in our packaging – what aspect of chandan should we dial up 6

7. Recommended research intervention 7

8. We envisage 3 studies to address the research needs Ingredient What is sandalwood/ chandan all about What all does it stand for Which dimension of it can we leverage in the context of cosmetics - more herbal or more glamour Study 1 Ingredient mapping Category / Consumer Who is this person we are talking about What skin care need should this range of cosmetics service Beauty, natural , healthy , fresh glow , radiance , shine etc. Given that the portfolio has different products what need should we focus upon across the different product ranges Study 1 Consumer Category need understanding – U&A Brand What should be the name of the brand such that it conveys the USP – natural / chandan based Study 2 Name test Product What should be the product mix What all products can a brand based on chandan own Study 2 Product range and mix exploration Communication What should the communication for this brand encapsulate What should we focus upon what should be the tonality of our communication Study 3 Communication cues Packaging What kind of packaging should the communication for this brand encapsulate What should we focus upon in our packaging – what aspect of chandan should we dial up Study 3 Packaging cues 8

9. Our Approach… A combination of Qualitative and Quantitative… In-depth and flexible data from a small sample Softer feel No numbers Impressionist Qualitative Structured data collection from large sample Rigorous Numerical Deterministic Quantitative Aids understanding.. Aids assessment.. 9

10. Deep dive into each of the studies Study 1 Ingredient mapping Consumer Category need understanding -U&A study 10

11. Qualitative Module 11

12. Study 1 - Ingredient mapping - Sandalwood Semantic profile Organoleptic profile Benefit profile VFM profile Synaesthetic profile Emotive profile IMPACT IMPACT How do they talk about it adjectives Perceived benefits Sensation profile Expected price Quantity needed Evoked experience sounds, time of day Emotive Profile Personality User Imagery Obituary Look Fragrance Tactile Descriptors / Analogies Smoooth…silky Lavishness… Beauty Healthy skin Relaxation Pampering OUTPUT – so what all does sandalwood as an ingredient stand for and what are the different dimensions of it evoked by people Which dimensions comes out in the context of cosmetics per se 12

13. Study 1 – Equity of Sandalwood Core Values Supporters Which elements of the brand are driving these values Peripherals Which elements of the brand are in the blind spot but neither add or detract from its equity Detractors Which elements of the brand are eroding the assets Absentee Which desirable values are present in the competitive set, but remain absent in the brand Output : What are the assets which are driving the brand’s reputation and distinctiveness Which elements are contributing to this advantage What are the weaknesses of the brand’s equity versus benchmarks 13

14. Study 1 – Category understanding OUTPUT – so what all need states get linked to cosmetics per se Fairness Healthy Skin Beauty Salons Spas Look better Feel Good Cosmetic Natural Anti-Ageing Healthy Ageing Weight Loss Detoxifying Extreme Makeover Inner Makeover Having More Being More Beauty & Health Beauty & Wellness* * wellness is a state of physical, mental, social and spiritual well-being 14

15. Study 1 – consumer understanding OUTPUT – so who is this consumer we are talking about - modern or traditional , very conscious about over t beauty or more of a natural beauty etc. 15

16. Research Approach – Study 1 Focus Group Discussions will be conducted with around 8 respondents in a group Group dynamics will elicit wide range of reactions & will help provide rich data as each persons thought process gets triggered by someone else’s remarks. Duration of a normal group will be between one & a half to 2 hours depending on the vastness of information coverage Beyond one and a half hours fatigue starts setting in and the quality of data collected gets affected. Hence we will administer the perceptions & imagery led questions first followed by the rational & function sections towards the end Data collection will follow a funnel approach in which we will start with the broad category context & funnel it down to specific brands Depth Interviews (DIs) will be conducted with respondents to get an in-depth understanding of their attitude & practices with respect to beauty care These one on one interviews will give us a depth of information on individual percerptions about the ingredient profiles, how they evaluate products in the cosmetic range Expert interviews with reputed aestheticians to get their perspective on the current trends in consumer expectations from beauty products & treatments, the hot selling ingredients & the promising ranges for the future 16

17. Quantitative Module 17

18. 18 Usage & Attitudes Research Business Objective Evaluate the current market environment to understand habits, practices, attitudes and behavior with respect to the products/brands in the category Research Objective Understanding the market in terms of: Attitudinal Measures: Behavioral Measures: 5 W’s of consumption Future Intention Purchase Behavior WHO consumes it? WHERE did buy it from? WHEN do they consume it? WHY do they consume it? WHAT do they like about it? Triggers & Barriers (Category level as well as brand level) Need Gaps Brand Imagery & Preferences

19. 19 Usage & Attitudes Research Methodology Usually conducted in 2 phases Exploratory Qualitative phase – to understand the spectrum of habits, attitudes, behaviors, and practices with respect to the category Enumerative Quantitative phase – to short-list, prioritize and enumerate various aspects relating to habits, attitudes, behavior and practices in the category Face to face interviews Sampling Random Sampling to get representation of the market Specific number of starting address will be selected using electoral rolls Around each starting address, a pre-specified number of households would be contacted using the right hand rule of field movement

20. 20 Usage & Attitudes Research Information Areas (Indicative) Understanding the usage in details Triggers of Usage Barriers of Usage Usage details and preferences Benefits & Expectations from the category Purchase Behaviour Place of purchase, Quantity purchase Price Perception Brand Level Information Awareness/Trial Brand Preferences Reasons for using or not using a particular brand Previous brand used Brand Imagery Demographics

21. Target Audience – Study 1 Demographics Women 20- 30 years, Mix of married & unmarried 35-45 years, women with family/ kids SEC A, B To tap the differences in attitude we will also look at representations of: Married & Unmarried Working women & Housewives Psychographics (to be identified using consumer responses to a battery of attitudinal and behavioral statements) Modern – accepts & tries new products Health conscious Beauty conscious Usership of cosmetic products Users of natural Users of other cosmetics Aestheticians Centers Chennai Delhi Pune Hypothesis: Such a range may fare better with older TG 21

22. Sample Design (Qualitative)– Study 1 Chennai Delhi Pune 20-30, Mix of married & Unmarried 35-45 years, women with kids 20-30, Mix of married & Unmarried 35-45 years, women with kids 20-30, Mix of married & Unmarried 35-45 years, women with kids Users of natural DI, SEC B, Housewives FGD, SEC A Housewives DI, SEC A, Housewives FGD, SEC B, Working FGD, S EC A, Working DI, SEC B, Working Users of other cosmetics FGD, SEC B Working DI, SEC A, Working FGD, SEC A, Housewives DI, SEC B, Working DI, SEC A, Housewives FGD, SEC B, Housewives Expert DIs 2 2 2 6 FGDs* , 6 DIs & 6 Expert Interviews across 3 centers *In the situation that we do all the 3 studies the number of activities in total may go down as we would re-look at the sample design to optimize total costs 22

23. 23 Sample Design (Quantitative) – Study 1 Quotas for various groups as appropriate – users, aware non-users, lapsers, users of natural cosmetics, rejectors of chemical cosmetics, etc etc Centre & Sample sizes (Indicative) Centres Delhi Pune Chennai Total Sample Size 300 300 300 900

24. Research Investments (Indicative)– Study 1 Research Investments (Qualitative) Research Cost will be Rs. 3,84,000/- Researcher Travel & Stay Costs will be Rs 55000/- Research Investments (Quantitative) Approximately INR 7,50,000 + taxes Terms of payment 50% post commissioning of research 50% post final presentation 24 *Costs will change basis the change in number of centers or the sample design

25. Deep dive into each of the studies Study 2 Name test Product range and mix exploration 25

26. Qualitative Module 26

27. Study 2 – Name test Likeability How does it sound - Phonetics Ease of pronunciation Connotations of the name Rational & Emotional associations Uniqueness & Differentiation Relatability to the nomenclature & ease of use Perceptions about the product experience Naturalness Sensorial Fit with Sandalwood associations Fit with the idea of natural cosmetic range Extendibility to different product range OUTPUT – Response to different name options , gauge fitments with sandalwood per se as well as with the idea of a natural cosmetic range Explore elasticity of name across different product range – does it gel with all the products 27

28. Study 2 – Product range and mix exploration So what are the expectations from a natural chandan based cosmetics range Which products Why / why not What is the chandan connect in each of them Which aspect of chandan do the products dial up Possibility of showing client’s range of product and also getting response if needed Mapping against competition – other chandan products in the market wherever applicable Other natural cosmetic range OUTPUT – Product expectations and delivery , SWOT of our product range 28

29. Study 2 - Product Testing OUTPUT – Product delivery on the ideal attributes.. Comparisons across different samples Important parameters for evaluation of products in the category Attributes of an ideal product Performance of the current product samples on these parameters Exploring areas of fine-tuning & development 29

30. Research Approach – Study 2 Focus Group Discussions will be conducted with around 8 respondents in a group Group dynamics will elicit wide range of reactions & will help provide rich data as each persons thought process gets triggered by someone else’s remarks. Duration of a normal group will be between one & a half to 2 hours depending on the vastness of information coverage Beyond one and a half hours fatigue starts setting in and the quality of data collected gets affected. Hence we will administer the perceptions & imagery led questions first followed by the rational & function sections towards the end Data collection will follow a funnel approach in which we will start with the broad category context & funnel it down to specific brands 30

31. Quantitative Module 31

32. 32 Product Test Business Objective To measure product performance Research Objective To evaluate among consumers, the performance of the new product on various product parameters. For example, in the skin care category, these parameters could be: Overall Likeability Fragrance Efficacy Benefits Color Ease of application/usage Depending on the objective, the product test could be a standalone, or a competitive benchmarking, or even to test against a control product or a range of alternative formulations.

33. 33 Product Test Type of Test Monadic Respondent exposed to only one product Gives absolute rating compared against norms or competiton benchmarks Normally done in matched panel Comparative Paired Comparison Compares and contrasts two products directly – less realistic but differences on products picked up however not suitable for cosmetics segment where there is a carry over effect Sequential Monadic Products are used and evaluated sequentially Round-robin More appropriate in early stage of product development where large number of products are involved All possible combinations of products tested in pairs Not suitable for final product rationalization test

34. 34 Product Test Methodology Monadic/sequential monadic product test based on number of products to be tested Panels will be formed – matched on basis of Age, SEC and Most often used brand Methodology will involve: Monadic Screening Product Placement in Household (Control/Test) in blind form Product Usage - 7 days (indicative) Rating on various product attributes Sequential Monadic Screening Product 1 Placement in Household (Control/Test) in blind form Product 1 Usage - 7 days (indicative) Rating on various product attributes Product 1 Placement in Household (Control/Test) in blind form Product 1 Usage - 7 days (indicative) Rating on various product attributes Comparative Ratings

35. 35 Product Test Information Areas (Indicative) Overall Likeability of the product Fragrance related In use fragrance After user fragrance Lasting effect of fragrance Efficacy Ease of Application/Usage Ease of spreading Ease of absorption Benefits Soft Skin/Glowing Skin/Moisturised skin Color Thickness

36. Target Audience – Study 2 Demographics Women 20- 30 years, Mix of married & unmarried 35-45 years, women with family/ kids SEC A, B To tap the differences in attitude we will also look at representations of: Married & Unmarried Working women & Housewives Psychographics (to be identified using consumer responses to a battery of attitudinal and behavioral statements) Modern – accepts & tries new products Health conscious Beauty conscious Usership of cosmetic products Users of natural Users of other cosmetics Centers Chennai Delhi Pune Hypothesis: Such a range may fare better with older TG 36

37. Sample Design (Quaitative)– Study 2 Chennai Delhi Pune 20-30, Mix of married & Unmarried 35-45 years, women with kids 20-30, Mix of married & Unmarried 35-45 years, women with kids 20-30, Mix of married & Unmarried 35-45 years, women with kids Current Lambency Consumers FGD, SEC A Housewives FGD, SEC B, Working FGD, S EC A, Working Aware non triers FGD, SEC B Working FGD, SEC A, Housewives FGD, SEC B, Housewives 6 FGDs* across 3 centers *In the situation that we do all the 3 studies the number of activities in total may go down as we would re-look at the sample design to optimize total costs 37

38. 38 Sample Design (Quantitative) – Study 2 Centre & Sample size (Indicative) Centres Delhi Pune Chennai Total Sample Size 100 100 100 300

39. Research Investments (Indicative) – Study 2 Qualitative Research Investments Research Cost will be Rs. 1,80,000/- Researcher Travel & Stay Costs will be Rs 55,000/- Quantitative Research Investments Approximately INR 3,10,000 + taxes Terms of payment 50% post commissioning of research 50% post final presentation 39 *Costs will change basis the change in number of centers or the sample design

40. Deep dive into each of the studies Study 3 Communication cues Packaging cues 40

41. Qualitative Module 41

42. Study 3- Communication cues Exploring the different spaces that Natural/ Sandalwood can take Connotations of each of these spaces Emotional associations Resonance with the consumer Differentiation & Newness Stretchability across product ranges Mapping all the emotions and identifying the entire gamut of associations: which most attractive to self Clustering the current offerings on the meta wall against the broad emotion profiles To arrive at need spaces that are desired but left untapped by branded products and new spaces To zero-in on the most relevant/ important emotions OUTPUT – Positioning platform for Natural/ Sandalwood that resonates well with the TG 42

43. Step One: Sensitized Respondents Respondents zone in on pictures… which capture their own emotions about the category/ proposition Example of Metawall Technique… Sports & related feelings 43

44. Step Two: Participative Narration; Grouping the ‘Meta Spaces’ Brief stories…. Cluster the story themes. Example…Emerging spaces… victory, teamwork, losing, triumph etc. 44

45. Step Three: Amplification of each cluster Experiencing the ‘Meta Spaces’ Example... Triumph as a metaspace Slipping into the frame Expanding the frame Thematic apperception 45

46. Study 3- Packaging cues Colour & Brightness Shades Combinations Sheen Finish Gloss / sheen Cues of premiumness Quality of finish Graphics Mnemonic Crest Logo Branding Size Font style Impact Ingredients Natural/ Cosmetic Ordinary/ Exotic Benefit mentions Key benefits highlighted on the pack OUTPUT – Ideal packaging cues on parameters of attractiveness, shelf throw, differentiation 46

47. Research Approach – Study 3 Extended Group Discussions will be conducted with around 8 respondents in a group Group dynamics will elicit wide range of reactions & will help provide rich data as each persons thought process gets triggered by someone else’s remarks. Metaspaces groups will be extended groups of about 3 hours 47

48. Quantitative Module 48

49. 49 Concept Testing Concept Testing Business Objective To check the feasibility of launching a new product concepts in terms of acceptability To check consumer reactions to proposed brand names Research Objective To evaluate among consumers, the product concepts in terms of various parameters like : Likeability Persuasiveness Uniqueness Relevance Credibility Intention to Purchase The Output – To identify which concept/s to take forward into product development

50. 50 Concept Testing Methodology Quantitative: Purposive Sampling, while ensuring proper geographical spread Face to Face interviews at respondent homes Multiple concepts can be tested with one respondent, with an upper limit of 5 concepts Target Group Females From SEC A/B households Aged 25 – 50 years Uses skin care products regularly Modern & health-conscious (to be identified using consumer responses to a battery of attitudinal and behavioral statements)

51. 51 Concept Testing Information Areas (indicative) Overall liking Specific Likes/Dislike of the concept Uniqueness Relevance Credibility Preference – Reasons for the same Purchase Intention Suitability of the name Overall Likeability of the name

52. 52 Pack Test Business Objective Is the new pack appealing, communicating right values, creating excitement among consumers Research Objective To select the pack that can convey all the desired pack objectives To evaluate the pack options on various parameters like Design Elements Elements which are standing out Ability of the pack to break through clutter Appeal of the pack If pack fits the positioning of the brand

53. 53 Pack Test Methodology Quantitative face-to-face interviews with structured questionnaires in a Centralised Location While actual packs can be tested, it is more practical to create and test simulated designs using computer graphics software

54. 54 Pack Test Information Areas (Indicative) Overall Likeability Elements which are liked/disliked Appeal Uniqueness Elements of the pack that help differentiate Noticeabiltiy Intention to try after looking at the pack Does the pack as a whole connote required brand values Perception of the pack through imagery attributes Ranking of packs

55. Target Audience – Study 3 Demographics Women 20- 30 years, Mix of married & unmarried 35-45 years, women with family/ kids SEC A, B To tap the differences in attitude we will also look at representations of: Married & Unmarried Working women & Housewives Psychographics (to be identified using consumer responses to a battery of attitudinal and behavioral statements) Modern – accepts & tries new products Health conscious Beauty conscious Usership of cosmetic products Users of natural Users of other cosmetics Centers Chennai Delhi Pune Hypothesis: Such a range may fare better with older TG 55

56. Sample Design (Qualitative)– Study 3 Chennai Delhi Pune 20-30, Mix of married & Unmarried 35-45 years, women with kids 20-30, Mix of married & Unmarried 35-45 years, women with kids 20-30, Mix of married & Unmarried 35-45 years, women with kids Current Lambency Consumers EGD, SEC A Housewives EGD, SEC B, Working EGD, S EC A, Working Aware non triers EGD, SEC B Working EGD, SEC A, Housewives EGD, SEC B, Housewives 6 EGDs* across 3 centers *In the situation that we do all the 3 studies the number of activities in total may go down as we would re-look at the sample design to optimize total costs 56

57. 57 Sample Design (Quantitative) – Study 3 Pack Test Centre & Sample size (Indicative) Concept Test Centre & Sample size (Indicative) Centres Delhi Pune Chennai Total Sample Size 150 150 150 450 Centres Delhi Pune Chennai Total Sample Size 150 150 150 450

58. Research Investments – Study 3 Qualitative Research Investments Research Cost will be Rs. 2,10,000/- Researcher Travel & Stay Costs will be Rs 55000/- Quantitative Research Investments Pack Test Approximately INR 2,25,000 + taxes Concept Test Approximately INR 250,000 + taxes Terms of payment 50% post commissioning of research 50% post final presentation 58 *Costs will change basis the change in number of centers or the sample design

59. Quantitative Module on Pricing 59

60. 60 Pricing Research Pricing Research Business Objective At what price to launch the new product? Research Objective Determine the optimum price of an about-to-be launched product or product variant Methodologies typically used Depending on the circumstances and the specific requirements of the study, we could use a combination of methods as follows: Price Sensitivity Measurement Extended Gabor Granger Brand Price Trade Off Conjoint Analysis The Output – To capture consumer reactions to proposed price and fine-tune product pricing

61. 61 Pricing Research – More on Methodologies

62. 62 Price Sensitivity Measurement (PSM) When to use - When dealing with new products When you need to know the acceptable price range When you don’t need any demand forecasting or a price What it will give: A range of prices that consumers find acceptable Could be done through House to House interviews except where the pricing of more than one concept / product / SKU is being assessed

63. 63 Extended Gabor Granger When to use - When there are a few other variables along with price that could well be impacting choice / selection of brand When some estimations of volume potentials are required to measure incrementality as well as cannibalization within the competitive context Basic premise: Uses different scenarios involving the entire or representative competitive set available for choice at various price levels The respondent selects / makes choices for each scenario Which of the brands/Products/SKUs would you buy? How many of each? Should typically be done at a Central Location since it involves large stimulus

64. 64 Conjoint Analysis Can be used to - Understand the impact of not only price but price as a trade-off vs. various other optional product features or defining criteria eg. Price, pack size, etc., of chips Simulate & forecast volumes basis the different possible combinations of prices, brands and features Basic premise: Consumer choice is seen as the determining criterion for evaluating price vs other features and brand trade-offs Several choice tasks based on different possible combinations of brand, price, features are shown to each respondent Each choice task typically contains 3-4 options including the product/brand and the competition products/brands The respondent selects / makes choices for each scenario Which one of the brands/Products/SKUs would you buy if at all? Should typically be done at a Central Location since it involves large stimulus

65. 65 Pricing Research Target Group Female From SEC A/B households Aged 25 – 50 years Uses skin care products regularly Modern & health-conscious (to be identified using consumer responses to a battery of attitudinal and behavioral statements) Centre & Sample size (Indicative) Cost (Indicative) Depending on the methodologies adopted, the cost for a typical pricing research with the above sample size will range between INR 1,50,000 and 6,20,000 +taxes Centres Delhi Pune Chennai Total Sample Size 100 100 100 300

66. THANK YOU For any information on this proposal please contact [email protected] [email protected] 66