London School of Science & Technology Assignment - Resit Qualification Unit number and title Business BTEC Level 5 HND Diploma in Business Unit 17 Marketing Intelligence Level 4 –Resit Student name and ID number Assessor name Imad Guenane Date issued Completion date 1st August 2014 5th September 2014 before 12.00 midday Assignment title Marketing Intelligence - Using market research to develop a product range. A Coca-Cola Great Britain case study Learning Learning Outcome outcome AC LO1 1.1 Understand buyer behaviour and the purchase decision making process 1.2 1.3 1.4 LO2 Be able to use marketing research techniques Submitted on 2.1 2.2 2.3 2.4 In this assessment you will have the opportunity to present evidence that shows you are able to: Describe the main stages of the purchase decision-making process Explain theories of buyer behaviour in terms of individuals and markets Explain the factors that affect buyer behaviour Evaluate the relationship between brand loyalty, corporate image and repeat purchase Evaluate different types of market research techniques Use sources of secondary data to achieve marketing research objectives Assess the validity and reliability of market research findings Prepare a marketing research plan to Task Evidence no. (Page no) 1.1 1.2 1.3 1.4 2.1 2.2 2.3 2.4 Pearson BTEC Level 4 HND Diploma Business Unit 17 Marketing Intelligence Summer Resit 2014 1 London School of Science & Technology obtain information in a given situation LO3 Be able to assess market size and future demand 3.1 3.2 3.3 LO4 Be able to measure customer satisfaction 4.1 4.2 4.3 Assess market size trends within a given market Plan and carry out a competitor analysis for a given organisation Evaluate an organisation’s opportunities and threats for a given product or service Evaluate techniques of assessing customer response 3.1 Design and complete a customer satisfaction survey Review the success of a completed survey 4.2 3.2 3.3 4.1 4.3 Pearson BTEC Level 4 HND Diploma Business Unit 17 Marketing Intelligence Summer Resit 2014 2 London School of Science & Technology Learner declaration An electronic copy of your assessment must be fully uploaded by the deadline date and time. You must submit one single PDF or MS Office Word document. Any relevant images or screenshots must be included within the same MS Office Word or PDF document. The last version you upload will be the one that is marked. Your paper will be marked if you have indicated this as your final submission. Review the mitigating circumstances policy for information relating to extensions. The file size must not exceed 20MB. Answer the criteria in order, clearly indicating the pass criteria number. Ensure that all work has been proof-read and checked prior to submission. Ensure that the layout of your documents are in a professional format with font style Arial, font size 12 for the text, font 14 for sub heading and font 16 for main heading, line spacing 1.5 and justified. Use the Harvard referencing system, otherwise it will be considered as plagiarised work. Ensure that you back-up your work regularly and apply version control to your documents. Ensure that any file you upload is virus-free, not corrupted and not protected by a password otherwise it will be treated as a non-submission. You must NOT submit a paper copy or email of this assessment to any member of staff at LSST. Your work must be original with the appropriate referencing Learner declaration I certify that the work submitted for this assignment is my own and research sources are fully acknowledged. Student signature: Date: Pearson BTEC Level 4 HND Diploma Business Unit 17 Marketing Intelligence Summer Resit 2014 3 London School of Science & Technology Assignment brief Unit number and title Unit 17 Marketing Intelligence –Resit Qualification BTEC Level 5 HND Diploma in Business Start date 1st August 2014 Deadline/hand-in 5th September before 12.00 midday Assessor Imad Guenane Assignment title Marketing Intelligence : Using market research to develop a product range A Coca-Cola Great Britain case study Source : Forbes.com Coca-Cola GB operates in the non-alcoholic beverage market. How these beverages are supplied to consumers varies enormously, from vending machines that supply single units to supermarket multipacks. In soft drinks alone, Coca-Cola GB has a broad range of over 80 products. In 1999 The Coca-Cola Company purchased, in various countries, soft drinks brands from Cadbury Schweppes plc, including Dr Pepper, Oasis, Kia-Ora and Malvern. The acquisition of Schweppes provided the opportunity to complement the range and to accelerate growth through new product development. Coca-Cola GB's approach to new product development is uncomplicated. It innovates to meet consumer demands; the consumer has a central role in the research and development process. Marketing concepts: The basic proposition of Coke’s business is simple, solid and timeless. When Coca cola bring refreshment, value, joy and fun to their stakeholders, then they successfully nurture and protect their brands, particularly Coca-Cola that is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business. At the center of Coca-Cola GB is its marketing department. Its primary purpose is to discover what consumers want and ensure the organisation delivers this. Placing marketing at the heart of the organisation enables Coca-Cola GB to grow the product range in ways that best meet consumer requirements through developing: new drink categories e.g. sports drinks new products within an existing category e.g. Winnie the Pooh Roo Juice new variants of existing products (brand line extensions/pack innovations) e.g. Fanta Icy Lemon Pearson BTEC Level 4 HND Diploma Business Unit 17 Marketing Intelligence Summer Resit 2014 4 London School of Science & Technology Buyer behaviour: Coca-Cola GB customers make high involvement and high habituation decisions when purchasing Coke products. As a result, customers develop a loyalty to the brand and what it means to them. For instance, in 1985 after the release of the “new Coke” customers were outraged. The original Coca-Cola evoked feelings of nostalgia that customers were accustomed to, and the company was forced to go back to the original formula despite the fact that customers had been choosing Pepsi in the blind taste tests. Due to the fact that customers are loyal to the Coca-Cola brand, Coca-Cola relies upon emotional appeal in their advertisements. Coke ads utilise celebrities, family figures, and Santa Claus to create familiarity for their customers. This method is known as affect referral. Branding: The mission statement of the company is to inspire creativity, passion, optimism and fun. At the root of Coke’s brand image you will always find nostalgia and familiarity. Coke fans are already loyal to its successful soda, so Coke utilizes this loyalty to create unique and creative advertising campaigns to stir up the emotions that consumers once had when enjoying a great Coke product. Coca Cola brand positioning: Competitive frame of reference: Colas? Non-alcoholic? Points-of-difference: Distinctive taste profile, Optimistic view of life, Classic, iconic symbolism & imagery Points-of-parity: Contemporary, up-to-date, Refreshing flavour, Brand slogan: “Coke Side of Life” Market research: Market research means systematically gathering, recording and analysing market data. Primary research involves going 'into the field' (e.g. house-to-house or street surveys). Secondary research involves using existing sources of information to research the market such as published reports or articles, or searching the Internet. There are two main approaches to 'primary' market research: Quantitative research: collecting information from a broad population sample e.g. by conducting extensive surveys, used when Coca Cola GB wants to gauge appeal across a wide audience Qualitative research: working with small 'focus' groups. This involves far more detailed investigations, e.g. gathering a small group of 'typical' consumers to taste test products or to talk about their preferences and experiences of using different products. Qualitative research, whilst not representative of the views of the general population, provides greater insight into 'why' people think what they think. Coca-Cola GB's research process has five stages: 1. Identify opportunity: Does it fit into an existing or new product category? Who are the target consumers? What do they want? Method: Desk research. 2. Explore solution; What is the best solution? a new product? A product extension? A new packaging concept? A new design? Method: Qualitative research using focus groups and in-depth interviews one-toone. 3. Measure suitability/effectiveness: Evaluate the relative appeal of alternative solutions in terms of meeting consumer requirements. Method: Quantitative research through face-to-face, telephone/internet interviews 4. Test Market: As it is very expensive for a company to launch a new product, before going for a full Pearson BTEC Level 4 HND Diploma Business Unit 17 Marketing Intelligence Summer Resit 2014 5 London School of Science & Technology market launch it often pays to try out new product ideas in a 'test' market. This may be launching the product in just one region of Great Britain, with just one retailer or conducting a 'Simulated Test Market'. Method: Quantitative research from participants in a test sample of consumers who physically live with the test product for a period of days. There are three stages: 1. Concept research - to determine whether consumers like the 'concept' of the new product. 2. Product attributes - to determine whether the actual 'product' offering matches the 'concept'.3. Volume assessment - to determine whether consumers will actually buy the new product and what, if any, existing products it will replace. 5. Track market performance: This involves tracking the product's success once it has been launched e.g. by recording sales figures, numbers of people familiar with the product, etc. Method: Quantified continuous rolling study with consumers and/or analysis of Electronic Point of Sale data (sales information gathered via retailers' tills). Customer Relationship Management: Customer Relationship process is now being implemented with key customers in other markets around the world. We work with our customers to improve shopper marketing and supply chain collaboration and to accelerate innovation in order to provide superior beverage selections to every consumer on every shopping trip. Coca Cola GB has recently started a successful customer relationship program in understanding shopper needs, drives and preferences, and migrating from a transactional and commercial link to a collaborative and multifunctional business relationship. Conclusion: Coca-Cola GB seeks to develop intelligently its product range in order to 'benefit and refresh everyone'. Building the range involves developing existing and new products in existing and new markets. The key to maximizing consumer satisfaction lies in doing the market research properly and getting the range right. References: The Times 100 (1995-2014) Using market research to develop a product range A Coca-Cola Great Britain case study. [Online] Available at http://businesscasestudies.co.uk/coca-cola-great-britain/using-marketresearch-to-develop-a-product-range/#axzz37YDl4DBa (accessed on 21 July 2014) The Coca Cola Company (2014) Coca Cola’s Customer relationship management [Online] Available from: http://www.coca-colacompany.com/our-company/suppliers/supplier-and-customer-partnerships (accessed on 21 July 2014) Forbes (2014) Coca-Cola Takes $247 Million Hit from Venezuelan Currency Evaluation Q1 Profit, Revenue F all [Online] Available at http://www.forbes.com/sites/maggiemcgrath/2014/04/15/coca-cola-takes-247-million-hit-from-venezuelancurrency-devaluation-as-q1-profit-revenue-fall/ (accessed 21 July 2014) Pearson BTEC Level 4 HND Diploma Business Unit 17 Marketing Intelligence Summer Resit 2014 6 London School of Science & Technology Task 1 This task offers you an opportunity to achieve LO 1: 1.1, 1.2, 1.3 and 1.4 Using the Coca Cola case study, describe the main stages of the purchase decision-making process for an individual consumer. Question 1.1 Guidelines You are required to consider the following in formulating you answer: Need recognition or perception, information search, evaluation of alternatives, purchase decision, post purchase evaluation stages for the individual consumer. Explain two theories of buyer behaviour in terms of individuals and markets and apply them to Coca Cola. Question 1.2 Guidelines You are required to consider the following in formulating you answer: A description or definition from reputable source of buyer behaviour Identification of two theories of buyer behaviour An explanation of these two theories of buyer behaviour Citations, which should be made using Harvard referencing style Explain three factors that could affect buyer behaviour, Guidelines Question 1.3 You are required to consider the following in formulating you answer Identification of three factors which could influence buyer behaviour Explanation of these 3 factors Examples to help explain these 3 factors can be provided Looking at Coca Cola case study, evaluate the relationship between brand loyalty, corporate image and repeat purchase. Examples may be used to reinforce your answer. Question 1.4 Guidelines A definition of a brand and brand loyalty from a reputable source A description of corporate image and repeat purchase An evaluation of how brand loyalty, corporate image and repeat purchase relates with each other Pearson BTEC Level 4 HND Diploma Business Unit 17 Marketing Intelligence Summer Resit 2014 7 London School of Science & Technology Task 2 This task offers you an opportunity to achieve LO 2: 2.1, 2.2, 2.3 and 2.4 Evaluate three different types of market research techniques that Coca Cola GB could use in its market. Question 2.1 Guidelines A description (or a definition from a reputable source) of market research Identification of the role and importance of market research Evaluation of quantitative research technique(s) Evaluation of qualitative research technique(s) As a marketing consultant for Coca Cola GB , you have been given two marketing research objectives: 1. Market a wider range of healthy juice 2. Evaluating customer perception about the Coca Cola GB brand Question 2.2 Your task is to demonstrate how secondary sources of data can be used to achieve these two marketing research objectives. Guidelines Define or describe secondary data Outline the two given marketing research objectives Identify sources of secondary data to support these two marketing research objectives Assess the validity and reliability of market research findings. The case study may be used to reinforce your answer. Question 2.3 Guidelines An assessment of the limitations of market research findings An assessment of what could make market research findings valid An assessment of what could make market research findings reliable You work as a Marketing Consultant for the Coca Cola GB company who wishes to launch a new product aimed at young consumers in the UK. Question 2.4 The senior management team has decided to conduct both qualitative and quantitative research in the London area to test the market. You have been given the responsibility of searching for market research agencies to carry out this task. Propose a marketing research plan to obtain information in the area. This research plan, also known as a research brief, is to be sent to three potential marketing research agencies who will respond with a detailed marketing research proposal. Prepare this research brief. Pearson BTEC Level 4 HND Diploma Business Unit 17 Marketing Intelligence Summer Resit 2014 8 London School of Science & Technology Guidelines Your plan should include the following sections Background Rationale Objective of research Methodology section covering among others, qualitative and quantitative techniques Data analysis section Timeframe within which you want the research conducted A budget section for this research. Pearson BTEC Level 4 HND Diploma Business Unit 17 Marketing Intelligence Summer Resit 2014 9 London School of Science & Technology Task 3 This task offers you an opportunity to achieve LO 3: 3.1, 3.2 and 3.3 Assess the size and the trends for the soft drinks market in the UK. Guidelines A description of what a ‘market consists of.’ Identification and selection of the market you will use for this question Question 3.1 Due to time constrains, you are advised to select a market which has a great deal of information that is readily available to you. An estimation of this market’s size, volume and /or value. A description of a market trend. An assessment of this market’s trends Plan and carry out a competitor analysis for the Coca Cola GB company. Guidelines A description of competitor analysis Question 3.2 Description of strategic group An identification of the strategic group that Coca Cola belongs to Identification of Coca Cola’s likely competitors Plan and carry out analysis of Coca Cola’s competitors. This is a hypothetical organisation used for the purpose of assessment. A French Soda manufacturer wants to enter the UK market with a new energy drink designed for an active population. Evaluate this organisation’s potential opportunities and Question 3.3 threats. Guidelines A description of the UK’s soft drink market An evaluation of the opportunities and threats in the UK soft drinks market for this company Pearson BTEC Level 4 HND Diploma Business Unit 17 Marketing Intelligence Summer Resit 2014 10 London School of Science & Technology Task 4 This task offers you an opportunity to achieve LO 4: 4.1, 4.2 and 4.3 Evaluate two techniques of assessing customer response. Question 4.1 Guidelines A description of the two (2) techniques A description of the advantages, disadvantages and constrains of these two (2) techniques. You have been assigned to conduct customer research for Coca Cola. Design and complete a customer satisfaction survey. Your questionnaire should contain a minimum of 12 appropriate questions. Question 4.2 Guidelines Design the customer satisfaction survey Generate questions that can produce both quantitative and qualitative data Use different question formats (for example yes/no, open ended, multiple choice, scales, etc) Survey monkey can be used to help design customer satisfaction survey Evaluate the success of the completed customer satisfaction survey in question. Question 4.3 Guidelines Review of the completed customer satisfaction survey. Measure and evaluate it success Success can be measured in terms of the number of respondents, if the questionnaire achieved its objectives etc. Pearson BTEC Level 4 HND Diploma Business Unit 17 Marketing Intelligence Summer Resit 2014 11 London School of Science & Technology Answer Sheet Task 1 (L.O. 1: 1.1, 1.2, 1.3, 1.4) Please type your answer here Task 2 (LO2: 2.1, 2.2, 2.3, 2,4) Please type your answer here Task 3 (LO3: 3.1, 3.2, 3.3) Please type your answer here Task 4 (LO4: 4.1, 4.2, 4.3) Please type your answer here IMPORTANT CHECK THAT YOUR ANSWERS MEET THE CRITERIA COMPLETE THE ASSIGNMENT CRITERIA AS YOU GO ALONG DO NOT LEAVE THINGS TO THE LAST MINUTE Pearson BTEC Level 4 HND Diploma Business Unit 17 Marketing Intelligence Summer Resit 2014 12