MANAGEMENT 3210Y CONSUMER BEHAVIOUR GROUP RESEARCH PROJECT GUIDELINES Overview Companies that fail to meet the changing needs and wants of their customers ultimately lose out to those who can and do. Meeting these needs and wants requires not only an understanding of consumer behaviour but also a comprehensive marketing plan based on that knowledge. The group research project is a semester-long project designed to integrate and apply the course material to the development of a real-world marketing strategy. The project requires a team of three to five people to select and research a product or service category, select a brand within that category, reposition it according to the needs of a new market segment, and then develop a marketing plan for the repositioned brand. It consists of a written report and two class presentations and is worth 35% of the final grade. Part of the research for this project will involve primary research collected through a questionnaire administered to a small sample of the target market. Teams will be selfselected and must be formed by the 3rd week of class, i.e. January 26th. . Since leaving the project to the end of the semester is counterproductive it needs to be completed in three phases. As the aim of the first two phases is to provide feedback and to the team make steady progress they will not be graded. For each phase not handed in on time, however, the group will lose 10% of the overall project grade. Phase one requires a two to three page description of the product category the group has chosen to focus on, a breakdown of the responsibilities among group members, and a project plan. Phase one is due Feb. 9. Phase two, due March 8, involves a profile of your product category's market, a description and justification of your new target segment, and a draft of your questionnaire. You will also be required to give a short (5-7 minute) oral presentation to the class describing your product or service and its new target segment at this time. Part of the class on this date will also be used to pre-test your questionnaire and receive feedback from the class. The final report, due the last day of classes must be a professional and polished document, no more than 20 double-spaced pages, excluding any appendices, references, or exhibits. Objectives To integrate and apply the understanding of the concepts and principles of consumer behaviour learned throughout the course to real-world marketing strategy. To develop skills working in groups To develop leadership and presentation skills. 1 Group selection Due: January 26 You will work on this project in groups of three to five people. Groups will be selfselected and a list of members, using the appropriate form, must be provided by January 26th. Group cohesiveness is often improved if the team also gives itself a name. In addition, one person in the group must be elected as a contact-person. All problems arising within the group related to relative contributions of the group members are to be handled internally, by the group. This is an essential part of the group project experience. You will however, have an opportunity to evaluate your group members at the end of the semester based on the quality and quantity of their contributions. Your grade can go up or down based on these evaluations OUTLINE OF GROUP PROJECT The following outline is provided as a sample structure for your group project. It is not meant to be all-inclusive and should be modified where necessary to fit the specific context within which your product or service is marketed. Your marketing plan should draw on as many topics covered in class as possible. Phase One: market profile Due: February 9 As a team, you must choose both the product category as well as the specific product/service within this category on which to focus. The deliverable for this phase is a two to three page report. The first page or two should describe the product or service category you have chosen to focus on, as well as the specific brand or product. The last page must be a timetable with a breakdown of who is responsible for what. Phase Two: description and justification of your target market segment Due: March 8 Phase two is a five-six page progress report and consists of: 1. A profile of your product category's market and the product itself based on any secondary research such as library research, company brochures, websites and reports, personal interviews, etc., you have conducted. Describe the product or service you are repositioning. What are its features and benefits? Describe the product category you are analyzing. Describe the market for your type of product in terms of size, historical trends, growth forecasts, etc. What customer segments exist in the market? Describe competitive positions within major market segments. Who are the leaders? Why? What are their positions (i.e. advantages and disadvantages)? What recent trends (e.g. economic, demographic, psychographic) have affected the nature of this market? What marketing opportunities do such market shifts suggest? 2. A description and justification of your new target segment. Based on your understanding of the market, what consumer segment(s) do you feel will be especially attractive in the future? Describe that segment. 2 Justify why you have selected that segment. How does the problem recognition occur for your product? Describe the internal/external search process. What sources of information are used? When? For what purpose? How do these inputs affect consumers? Describe the kind of knowledge and involvement consumers might have about your product. What types of means-end chains might they have? Is symbolic meaning important for your product? Describe the interpretation processes consumers might use in learning about your product. Is exposure likely to be accidental or intentional? Is comprehension likely to be shallow or deep? What types of inferences, if any, are likely to be common? Do any issues of one's personality and self-image affect purchasing and use decisions for your chosen product Do consumer psychographics and lifestyles affect product usage? What lifestyle factors do the consumers seem to have in common? What might be your consumers' consideration set? Which brands might be included? What beliefs exist regarding important brands and product attributes? Why do these beliefs exist? What are the salient attributes? Describe typical decision strategies used by consumers to make a choice in this product category. What model best predicts choice? What are consumers' attitudes towards the brands in the category? Do strong subjective norms exist? What kind of brand loyalty, if any, exists for your product or service category? Why does it exist? Is there role specialization in the buying process? What are the relative influences of family members or others in the buying process? Are there other important reference group or cultural influences? Is word of mouth an important factor for purchasing your product? How does word of mouth flow? Where and when do consumers buy the good or service? How does the setting and timing affect consumer behavior? How important is the sales environment or sales person? 3. A draft of your questionnaire (not more than two pages long) as an appendix. The questions in this questionnaire must be based on what you think are the key consumer behavior issues for your target segment. What information about your target segment would be most helpful in devising a successful repositioning strategy? Your group must also make a 5-7 minute oral presentation to the class. In this presentation, you need to describe your product/service and its new target segment, and use your findings to convince the audience that your repositioning idea is a creative and profitable one. This is an opportunity to get feedback from the class. 3 This class will also be used to pretest your questionnaire so print up enough copies for everyone. The aim here is not to collect data, as it is unlikely that the class is representative of your target market, but to get feedback on the questionnaire itself. Final report Due: April 14 The report must contain 1. A revision and expansion of the first two phases and should integrate the concepts discussed in class with your questionnaire data as well as any other secondary data you may have about your target segment. 2. A product positioning statement Including the specific brand image to be used. Justify your positioning statement based on your analyses of the target consumer’s behaviour 3. Marketing mix recommendations Select a product strategy for your brand. Discuss packaging, brand features, services, etc. Justify your strategy with what you have learned about consumer behavior in Phase Two. Select a pricing strategy for your brand. Justify your decision based on your understanding of price sensitivity, cost, competition, and psychological pricing considerations. Outline and justify a general promotional program. What is the relative importance of various promotional mix tools? What are your advertising objectives? What is your message? What media will you select? Will you use a personal selling program? If so, why and how? Design and justify the appropriate channels of distribution. The final report must be a professional and polished document, no longer than 20 doublespaced pages, using no smaller than 11-point font. Be sure to cite all references where appropriate in the body of the paper and list your sources of information, including articles, interviews at the end. Any charts and tables, as well as the PowerPoint presentation and questionnaire, can be included as appendices. Papers must include a cover page with the names of all group members. The first page of the report must be a table of contents and the second page an executive summary that provides a brief overview of the report (i.e. product chosen and your market repositioning concept). An example of a table of contents is provided at the end of these guidelines. The heart of this project is your analysis and creative application of the basic consumer behavior issues, concepts, models, and theories involved in the marketing problem you are addressing. What are your suggestions for using these concepts to help study, understand, and interpret the basic issues underlying the consumption of your product or service? Be sure to present your ideas in explicit and concrete terms; examples can help here. Be careful not to get carried away with presenting facts about the product category, 4 the company, or the product that you fail to explicitly relate them to consumer behavior concepts. You should also offer creative suggestions for developing marketing mix strategies to accompany the segmentation and repositioning scheme that you have identified. These strategies involve aspects of product strategy, advertising, sales promotion, pricing, and distribution. Be as specific as you can and be sure to justify your recommendations on the basis of all the information you have regarding how consumers behave towards your product/service. Final presentations Due: April 5 Presentations will take place over two classes beginning April 5, and concluding April 14th. Unless a compelling reason can be given for making the presentation on a particular date, the order of presentations will be chosen by lot on March 29th. Those groups giving their presentation on the 5th have the advantage of getting feedback on their project before the final report is due. Those going on the 14th have the advantage of extra time. All team members must participate in the presentation. The final presentations must be in PowerPoint. They must be professional, interesting, and clearly convey the strength of your repositioning concept and both the thoroughness of your marketing plan and its soundness in terms of consumer behavior. Plan on presenting roughly 15 minutes of material, leaving about 5 minutes for classroom discussion. Since part of the presentation mark is for class discussion it is important to encourage questions. You are expected to attend all the project presentations, as some exam questions will be based on them. Each group must provide a copy of its PowerPoint presentation with the final report. Grading This project is worth 35% of the final grade; 10% allotted for the presentation and 25% for the final report. In general the project will be evaluated on your choice of the key consumer behavior issues involved in the marketing problem, the creative way in which you analyze the consumer issues, how you select and use concepts from the class to help solve the segmentation and repositioning "problem", the originality and soundness of the strategies that you recommend and how clearly these follow from your consumer behavior analysis. More specifically: Papers will be graded using the following guidelines Profile of the market 15 points Description and justification of target segment 10 points Analysis of consumer behaviour issues 35 points Strategic marketing mix recommendations 20 points Organization 10 points Coherence, style and writing 10 points 100 points 5 Oral presentations will be graded using the following guidelines Content 10 points Organization 5 points Presentation style 5 points Use of visual aids 5 points Timing 5 points Handling questions 5 points Professionalism 5 points 40 points Key Dates Jan 26 Feb 9 Mar 8 Apr 5 Apr 14 Team Selection Phase One Due Phase Two Due, Questionnaires tested and brief presentation Group Presentations Begin Completed Project Due Sample Table of Contents Executive Summary Product Description Product category market profile Segments Competition Trends Target segment Consumer Behavior Motivation and Values Personality and Lifestyles Attitudes Decision making Group Influences Cultural Influences Situational Influences Product positioning statement Marketing mix recommendations Product Price Promotion Place Conclusion/Summary References Appendices Charts and Tables Questionnaire PowerPoint Presentation 6