Understanding Choice Drivers Decoding Taste A Research Proposal

Understanding Choice Drivers; Decoding Taste A Research Proposal

Research Objectives To map the hierarchy of various brands of biscuits available in the market in terms of consumer preference To benchmark the Indian Mc. Vitie’s Digestive biscuit to the one available in the UK To diagnose reasons for the hierarchy by understanding associations to occasions and current perceptions about the product 2

Research Design Quantitative Research involving Consumer Behavior & reasons thereof Consumer Ratings Consumer Choice and reasons thereof Consumer Rating to be done for all the test biscuits through a Round Robin design. In a round robin design, each test product is paired against every other product, and ratings taken for both Each product is tested with every other product equal number of times, and at both first and second position This is best orthogonal design, in a multiple test product scenario, and provides the best data in terms of ratings, by removing all contrast and order biases This rating data to form the basis of building the overall product likeability hierarchy 3

Information Construct Module 1 - Pre-exposure of Test products Current Biscuit consuming occasions & category expectations Current consumption vis-à-vis various sub-categories and matching to occasions Attribute comparison linked to the topmost occasion, through a Max. Diff scaling technique Module 2 - Product Exposure of the two products, serially in blind form Product ratings of two products Module 3 - All test product exposure (all 7) – this will be branded and taken to understand the perception of these brands tested in Module 2 Product association on aspects like… • Nutrition • Taste • Health • Multiple Occasions • Overall preference 4

Examples of Needs*Occasions & Product * Taste expectations…. Needs * Occasions Product / taste expectations When you want to serve guests at home something light, easily digestible, commonly served When out of home, with friends and want to have something light Want to have something traditional/Indian taste product which is light & healthy/good quality Want to have something quickly but would be filling, satisfying Want to have something to go with a meal/ make it palatable To share and have something interesting but affordable, when out with friends and having fun • • • Salty Sweet Less fat/calories Made with healthy ingredients Creamy Bitter With masala Crunchy Less powdery Made with wheat …and many more When I am bored & I want to eat something quickly & conveniently to relax & refresh myself Want to serve guests something of good quality, at home 5

Details on Max Diff technique A measurement and scaling technique! With Max Diff, respondents are shown a set of possible items and are asked indicators of higher and lower product/taste expectations This will be done at an unbranded level, so that Product Codes for biscuits and sub-categories of biscuits are decoded without any brand / category into picture The Max. Diff Technique! The Max. Diff Advantage! 1. 2. 3. Process of Paired Comparison (best & worst) between few parameters, rather than having to choose from a laundry list of parameters Repeated a few times, between different sets of parameters Data finally modeled to derive utilities or importance 2. 3. 4. Importance of each attribute at a derived level, and not stated Tradeoff decision making of attributes Ensures greater differentiation among the attributes More engaging way to capture responses from the consumers 6

Example of Questioning in Max Diff technique… Thinking of the kind of product/taste expectations you have when you think of eating a biscuit on _____time (MENTION NEED * OCCASION) , please look at the following product/taste aspects which people like you have mentioned. Please tell me out of these, which one do you think is most important for you and which one is least important. Most Important Least Important 1 Sweet 1 2 Made with healthy ingredients 2 3 Less fat/calories 3 4 Creamy 4 5 Less powdery 5 Each respondent goes through 8 -10 such scenarios, where he / she is asked to choose his expectations. The scenarios are created by a statistical software, so that all possible combinations get tested, and there is no bias whatsoever. 7

Output from Stage 1 through Max Diff… Utilities/ importance scores are DERIVED taking into account all combinations exposed across needs*occasions. This kind of output is derived for Overall any biscuit need*occasion, as well as for all sub-categories of biscuits, as expectations will be different across different needs*occasions and across biscuits categories Hierarchy of Product/taste Codes that consumers expect from various types of biscuits 8

Methodology Paper and Pencil Interviews (PAPI) Face to Face Interviews Structured Questionnaire Central Location Test (CLT) Need to conduct this research in a controlled environment, as it is critical to have a more unbiased and pure/real time view of the products; versus the mental recall ability of the respondent Also, blind testing and evaluation will not be possible at respondents’ home Purposive Sampling 9

Sampling & Sample Size A total of 7 test products Round Robin Design of testing every product with every other product equal number of times Total 42 panels per city Sample per panel – 18 Total reads per product – 216 First reads per product - 108 Total respondents: 756 Sample Towns: 3 – Delhi, Chennai & 1 Tier 2 city (options in Annexure) 10

Investments Research cost for a sample of 756 will be INR 567, 000 (including cost of venue & incentives) Additionally, actual costs will be for all the product purchases (UK Mc. Vitie’s will be provided by UB, while others will be purchased by IMRB, billed at actuals) Note: There will be additional service tax on this as per GOI norms at the time of billing. Terms of Payment 50% before fieldwork commences 50% on submission of report 11

Possible Tier 2 towns Pune Ludhiana Indore 12

Standard Terms and Conditions

Standard Terms and Conditions All research projects are conducted by IMRB International in accordance with the provisions of the ICC/ESOMAR International Code of Marketing and Social Research Practice and of the MRSI Code of Conduct. Proposal and Terms of Payment These terms, together with the proposal, shall constitute the entire contract between IMRB International and the client. Market research proposals and quotations provided by IMRB International at a client’s request and without an agreed payment remains the property of IMRB International and their contents may not be revealed to third parties without IMRB International's written permission. Similarly, confidential research specifications provided by the client shall remain confidential to the client. The time and cost estimates (being the agreed fee) shall apply only in relation to the techniques and sample sizes described in the proposal. Any alteration to the techniques and sample sizes as laid out in the proposal shall result in an alteration in the cost and timing of the study. The terms of this proposal (time and cost) remain valid for a period of 45 days from the date of issue. The time taken for a project is counted from the date of commencement of the project as per the receipt of the approval mail from the client. The date of commencement will be mutually agreed upon between the client and IMRB International at the time of commissioning the project. 14

Standard Terms and Conditions The terms of payment are specified in the proposal. No work of any kind will be carried out until the estimate is signed and the advance is received by IMRB International. Any departure from this shall not constitute a waiver of this term. Advance bills are payable on presentation of the bill. All other bills are payable within 30 days of the date on invoice. Invoices not paid within 30 days of presentation will accrue interest thereafter at 2% over Bank base rate. In cases where the commissioning of the project is through a consultant / advertising agency, as per normal practice, a fee for the consultant / advertising agency is included in the cost estimate. 15

Standard Terms and Conditions Report Two copies of the report, or one copy of the CD or other media, as appropriate, will be provided to the client. Any additional copies will be charged extra. Whenever the data is processed on the computer, one copy of the printout will be provided to the client; additional copies will be charged extra. Reports of a market research project shall be for use solely by the client (including his consultants and advisors). If the Client intends a wider circulation of the results of the project, prior written approval of IMRB International as to the mode and content, shall be obtained. In any such publication, due acknowledgement must be made to IMRB International. If any new methodology has been developed for the project, it would remain the property of IMRB International; the client has no exclusive right to its use. All stimulus material (images, concept card, products etc. ) used in the research will be attached to the report as an annexure Transcripts of the research activities will be provided to the client at a cost if the client so requires. 16

Standard Terms and Conditions Cancellation or Delay Should the client cancel a study after it has been commissioned, the client will be liable to pay the proportion of the agreed fee that covers all work carried out, expenses incurred including executive time and financial commitments entered into by IMRB International, related to the project and subsequent to the date of commissioning. Similarly, if late delivery of any materials, or any action or decision by the client, results in delay or cancellation of fieldwork, then the client will be liable for payment of charges incurred by IMRB International. In case a project cannot be completed because of legal reasons or because of seizure of documents, products or interviewers (when they are acting within the law) by some official / semi-official agency, IMRB International will charge the client the actual costs as well as legal and other costs incurred directly in connection with the project and any consequential expenditure. 17

Standard Terms and Conditions Sub-contracting IMRB International reserves the right to sub-contract any part of the research described herein to recognized suppliers and subject to the appropriate quality controls. IMRB International shall ensure that the sub-contractor agrees to abide by the MRSI code. All moderators, transcribers and other freelancers used on any project will be selected from IMRB International’s approved list of vendors. This list is approved by senior researchers and is updated on a yearly basis. Groups and depth moderation shall be carried out by appropriately skilled and trained staff Moderators shall be briefed and fully prepared including in the use of any techniques not explicit in the discussion guide. Each moderator shall familiarize him/herself, as appropriate, with the objectives of the research project, the issues to be explored, the stimulus material and the particular techniques to be used prior to the commencement of fieldwork. Moderators shall prepare a written report of any problems or issues found in groups/interviews, including with respect to: the compatibility of respondents with the desired profile; the suitability of the room(s) used and their audiovisual facilities; the performance of the host or individual who received the group. 18

Standard Terms and Conditions Accuracy of Research Data All qualitative findings will be supported by verbatims from the respondents. The source of the verbatim will be provided without disclosing the identity of the specific respondent in order to maintain respondent confidentiality Conclusions and recommendations provided in the report are solely opinions of the research agency. IMRB International shall not be liable for any damages, direct or consequential, arising from action taken on the basis of such recommendations. 19

Standard Terms and Conditions Respondent Recruitment All recruited respondents shall be validated using one of the methods below. : Validation may be by respondent re-contact or monitoring if recruitment is by phone from a central phone unit. At the interview/group discussion, the respondent’s identity shall be confirmed by a back checking done by the moderator Respondent re-contact may be carried out between recruitment and the date of group or depth interviews, or at the group/depth interviews themselves. Re-contact may be by any medium involving direct communication with the respondent (e. g. faceto-face, by phone, by post or by e-mail). Where validation is carried out at the group/depth interview, a self-completion or administered validation questionnaire may be used but shall be administered by someone other than the original recruiter. Where moderators consider that the recruited respondents do not match requirements they shall report the discrepancies to the appropriate management of the research service provider. 20

Standard Terms and Conditions Respondent Confidentiality Adequate and appropriate approval will be sought before recruiting any respondent for a particular project. Respondents are incentivized for participating in the research. The gift acts merely as an incentive for participation and does not in anyway bias consumer responses. The MRSI Code of Conduct and the ICC / ESOMAR International Code of Marketing and Social Research Practice protects the identity of the respondent and the client, ensures confidentially of all relevant information provided by the client to the research agency, and describes the mutual responsibilities of the client and the research agency. Clients, if they wish to attend fieldwork, will also be bound by the MRSI/ESOMAR code of ethics i. e. They will respect the respondent confidentiality. Any photo, name disclosure of respondent will be made only after taking written consent of the respondent. The client also binds to the fact that photo/named responses will not be used for marketing or sales purposes 21

Standard Terms and Conditions Respondent Confidentiality Full records shall be kept of group or depth interview responses, normally by recording (e. g. audio and/or video). Respondents shall be made aware of and give their consent to the recording itself, the intended use of the recordings (including use by any third parties) and any transfer of data (e. g. to clients). It may be considered appropriate to have respondents confirm their consent in writing. The use and transfer of recordings should be for research purposes only. Where third parties (including the client of the research service provider) are to observe the group or depth interviews, respondents shall be made aware of this , especially where the observation is from a hidden viewing area. 22

Standard Terms and Conditions Research Instrument Approval Adequate and appropriate approval of all research instruments (recruitment questionnaire/ discussion guide/stimulus material)will be obtained from the client before putting them into research. The research instruments (soft copy) will be handed over to the client at the end of the project along with the report. 23

Standard Terms and Conditions Data Collection & Storage Full records shall be kept of group or depth interview responses, normally by recording (e. g. audio and/or video). Recordings shall be labeled to identify the project and respondents (including by cross-reference to other records) and the date & centre of the group or depth interview. Completed recruitment questionnaires and audio and video tapes prepared from them, are the property of IMRB International, which will be entitled to destroy records without reference to the client after the periods specified below : Qualitative research video / audio tapes / transcripts will be retained for six months after the completion of the study. These time periods will not apply in the following cases : Syndicated surveys, of ad hoc or continuous nature where IMRB International will specify the time for retaining the questionnaires and the data tapes. Where the client and IMRB International have agreed to a different time frame. 24

Standard Terms and Conditions Force Majeure IMRB International will do its utmost to complete the project in accordance with the timing quoted in the proposal but shall not be held liable for delays caused by factors outside its control, including, but not limited to, fire or accident, strike or labour disputes, postal or other communication delays, natural catastrophe, war, riots or civil commotion or any law or regulation of any Government. 25

Standard Terms and Conditions Normative Databases On completion of the project, the study findings may be included in normative databases. These norms may be used for providing interpretation to Clients and shared with other Clients, ensuring, however, that the identity of the Client or brand is kept completely confidential. Code of Conduct The MRSI Code of Conduct and the ICC / ESOMAR International Code of Marketing and Social Research Practice protects the identity of the respondent and the client, ensures confidentially of all relevant information provided by the client to the research agency, and describes the mutual responsibilities of the client and the research agency. The commissioning of the research project by the client signifies the acceptance of the terms and conditions of this contract as well as of the MRSI Code of Conduct. A copy of the MRSI Code of Conduct and the ICC / ESOMAR Code is available on request. 26

Thank You!