Working with the Clients. Finding Insights. What is

1
Working with the Clients. Finding Insights.
What is Added value in Marketing Research.

• prepared by
• Mila Bogomolova

2
MR Make clear decision with real information

• Global Market Research turnover was US 26
  billion in 2007.
• Over 68 of the global Market Research turnover
  is generated in top five markets USA, UK,
  France, Germany and Japan.
• China recorded net growth of almost 25 and will
  be pushing for a top 5 ranking to six years.
• Research market in Russia is steadily growing
  after the crisis in 1998 when it fell down
  significantly. In the year 2007 the market volume
  was equal to 270 mln.
• Yearly market growth for last 5-6 years may be
  estimated at the level of 30-35. The extensive
  growth of the market size is accompanied with the
  growth of professional level, both on agency and
  clients side.

3
MR Make clear decision with real information

• Most market volume is provided by big
  international FMCG companies but the share of
  Russian clients is steadily growing and they are
  starting to pay more and more important part in
  the turnover of research organisations.
• The professional level and the level of demands
  of Russian clients is growing though the
  qualification of international clients is much
  higher.
• Most clients and suppliers are located in Moscow
  (85 90 of total market volume) but the
  importance of clients from other Russian regions
  is growing.
• The competition in the industry is quite strong.
• As the market research industry is quite new in
  Russia (about 15 years old) the research market
  is still not segmented by business area, almost
  all agencies do not have a specialization.

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What is significant for the research industry in
the Russia?

• Increase of budgets and qualification of domestic
  clients.
• Increase of ratio of studies outside FMCG (e.g.,
  financial services, insurance, retail,
  automotive, real estate) as a result of economy
  growth and active development of these sectors.
• More international research networks will enter
  the market through starting new companies or
  acquiring existing ones.
• The fieldwork will become more and more hard to
  organized. This is connected with decrease of
  response rates and increasing problems with
  hiring good interviewers.
• Small and medium sized agencies will try to find
  areas of specialization (by business sector,
  methodology or deeper understanding of problems
  of their clients) while big FMCG budgets will
  concentrate among the leading agencies.

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All Research Methods

• Telephone Surveys The best method for collecting
  reliable statistical data. We use our own CATI
  system (a call center) with 54 stations. This
  allows for maximum efficiency in telephone
  surveys across Russia.
• Hall Tests Testing variants (products, design,
  concept, etc.). We constantly use this method
  because our clients business requires constant
  testing of new developments.
• Home Surveys An expensive method, but,
  oftentimes, the volume and specifics of the
  research goals requires it to be used. We do home
  surveys across Russia and CIS, but, when
  possible, recommend cheaper and more effective
  methods to our clients (telephone surveys, hall
  tests)
• Street Surveys We usually do not recommend this
  method, despite its cheapness. However, there are
  situations when a street survey is the most
  adequate for your task (for example, when a rough
  estimate is needed ASAP, on a low budget)
• Mystery Shopping. Helps evaluate the level of
  service provided to the consumer, and, when
  regularly used, can be a good instrument for
  further motivation for a retailers sales staff
• Standard Qualitative Methods Focus groups
  (simple, mini, creative, conflict, etc.),
  diads, depth interviews. The best method for
  receiving in-depth information and developing
  hypotheses for a companys marketing goals. These
  methods are quite effective, with a good balance
  of term, budget, and volume of information
  received.
• Special Ethnographic Qualitative Methods
  (observation, immersion, home visits, etc.) A
  good method for immersion into the consumers
  real life, which allows us to receive and
  visualize valid information on the role of
  products and brands in the lives of consumers, as
  well as to check and develop insights.

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The study of Discovery Channel audience in
RussiaMarket research proposal
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Background and objectives

• Background
• Discovery Communications is the number-one non
  fiction media company reaching more than 1.5
  billion cumulative subscribers in over 170
  countries
• Discovery Channel, Animal Planet, Discovery
  Civilisation, Discovery Science and Travel and
  Living are available to 10.5 million cumulative
  households in Russia through NCN, UCN, NTV Plus
  and other smaller operators
• Discovery Channel alone reaches over 4m subs in
  Russia. It has around 1m subs in St. Petersburg
  and is currently extending its distribution to
  social tier cable subscribers in Moscow, which
  will increase our audience in this city from 0.5m
  to 1.5m subs by 2008
• DC has plans to launch a separate channel feed
  for Russia and introduce advertising sales by the
  end of 2007, moving away from an affiliate-based
  business model
• The market research is required to help optimise
  and localise the DC schedule in line with the
  viewing habits and preferences of the Russian
  audience, increase local feel and personality of
  the channel and programme branding and maximise
  the effectiveness of marketing campaigns

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Background and objectives

• Main Objectives
• To gain a thorough understanding of current and
  potential audiences of DC in Russia and how the
  media generally, as well as factual television
  and DC programmes fit around their daily routines
• To explore associations of current and potential
  viewers with the DC brand as well as with other
  media brands.
• Specific objectives
• Daily habits - when, where, how and why different
  media content is used at different times
• Drivers/deterrents to watch non fictional
  television - types of programmes, presenters,
  elements and tone they would like to see
• Usage of multichannel TV what are the reasons
  for subscribing to pay-TV platforms and what are
  the barriers for taking up pay-TV
• DC brand associations perceptions of DC and of
  our key content types (popular science, history,
  engineering, etc.) and flagship programmes
• Suitability of translation/language and voices
  used to present DC in Russian, compared to other
  local and international channels strengths of
  dubbing versus subtitling
• What media brands are part of their lives and
  what do they stand for differentiation of DC
  from competitors and key characteristics of the
  media environment we can offer to prospective
  advertisers

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General research design

• EXPLORATION STAGE
• Objectives
• Consumers motivations
• DC brand perceptions
• Hypotheses for quantitative stage
• Method
• - Focus groups preceded by diaries

• EVALUATION STAGE
• Objectives
• Media behaviour of consumers
• Image of DC and competitor brands
• Verification of hypotheses from exploration
  stage
• Method
• - Face-to-face in-home interviews

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Exploration stage, methodology

• Method
• Focus groups
• 6-8 participants
• 2-2.5 hours length
• Each participant fills media usage diary during a
  week prior to attending a group
• Geographical coverage
• Moscow and St Petersburg
• Target group
• Males and females aged 20 39
• White collars/ students
• Within top 30 by income
• Regularly watch factual TV programs
• Pay TV subscribers
• Know Discovery Channel
• Actual and potential DC audience
• Loyal DC audience watch DC at least twice a
  week

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Exploration stage, Research composition

• NUMBER AND STRUCTURE OF GROUPS
• The following group structure is suggested
• In total 10 FGD will be carried out (5 FGDs per
  city)

of group Location Gender Age Consumer behaviour
1 Moscow Male 25-32 Loyal DC audience
2 Moscow Male 33-39 Loyal DC audience
3 St Petersburg Male 25-32 Loyal DC audience
4 St Petersburg Male 33-39 Loyal DC audience
5 Moscow Male 25-32 Potential DC audience
6 St Petersburg Male 33-39 Potential DC audience
7 Moscow Female 25-39 Loyal DC audience
8 St Petersburg Female 25-39 Potential DC audience
9 Moscow Mixed 20-24 Potential DC audience
10 St Petersburg Mixed 20-24 Loyal DC audience
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Evaluation stage, Methodology and research
composition

• Method
• Face-to-face in-home interviews
• Walk random sample
• Paperpencil approach
• Interview length is 30 minutes
• Nearest birthday method to select respondents
  within households
• Geographical coverage
• Moscow
• Target group and sample size
• The sample will include two subsample
• Main sample (500 interviews)
• Males and females aged 20 54
• Boost sample (100 interviews)
• Males aged 25-39, white collars, top 30 of
  population by income
• Total sample size will be 600 interviews

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Timing

• Total project timing is 10 weeks

Weeks 1 2 3 4 5 6 7 8 9 10
Project set-up
Recruitment for FGDs
Fieldwork (FGDs)
Report (FGDs)
Questionnaire (survey)
Fieldwork (survey)
Data entry and data processing (survey)
Final delivery of results
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Reporting and budget

• DELIVERIES
• Detailed analytical report (for FGDs)
• DVD tapes of FGDs (in Russian and with
  simultaneous translation into English)
• Data file in SPSS with English labels (for
  survey)
• Crosstables in Excel (for survey)
• BUDGET
• PAYMENT TERMS
• Budget is shown in USD
• In case of payment in Russia 18 VAT will be
  added to the price and fixed exchange rate of 27
  RUR / USD will be applied

Costs, USD
Exploration stage (10 FGDs with diaries) 21000
Simultaneous translation of FGDs 2000
Evaluation stage (600 f2f interviews in Moscow) 14400