TASK -1 MARKETING INFORMATION AND RESEARCH

REPORT

TO : MANAGING DIRECTOR (NESTLE GHANA LIMITED)

FROM : RESEARCH EXECUTIVE (BILLI RESEARCH AGENCY)

DATE : 5TH JUNE, 2009

SUBJECT : RESEARCH PROPOSAL ON NEW PRODUCT CONCEPT

TESTING

CONTENT:

10 BACKGROUND INFORMATION ON NESTLE GHANA LIMITED

20 OBJECTIVES OF THE RESEARCH

30 METHOD AND APPROACH FOR RESEARCH

40 RESEARCH TIMING

50 FEES AND EXPENSES

60 PERSONAL C.V. / EXPERIENCE REFERENCE

70 REFERENCES

10 BACKGROUND INFORMATION ON NESTLE GHANA LIMITED.

Nestle Ghana limited is a private company operating in Ghana. Its activities include
condensed and evaporated diary products, beverages, coffee, tea, and chocolate and
confectionary.
The company employs four hundred and seventy two work force.

Nestle started business in Ghana in 1957 under the trading name of Nestle products
Ghana limited with the importation of nestle products such as milk and chocolate. In
1968, it was incorporated as Food Specialties (Ghana) limited to manufacture and market
locally well known Nestle brands. The company became nestle Ghana limited in 1987.

In 1971 the production of two products, Ideal Milk and milo started at the factory in
Tema, the port city. The factory has since been further developed and now also produces
 carnation milk, Chocomilo, Chocolim, Cerelac, Cerevita and Nescafe 3 in 1. These
products are not only produced for Ghana but also exported across West Africa.

In 2003, Nestle Ghana limited invested in a new warehouse named the Central
Distribution Centre, located next to the factory in Tema.

The company runs sales offices with warehouse in Kumasi, Takoradi, Koforidua and
tamale, all in Ghana.

The business activity of Nestle Ghana limited is a direct contribution to the economy of
Ghana.

For all these and other endeavours, nestle Ghana limited has been recognized by the
Government of Ghana and other bodies as a responsible corporate citizen.

PRODUCTS OF NESTLES GHANA LIMITED

Since its establishment, Nestle Ghana limited has significantly stimulated the Ghanaian
economy with a dynamic, well trained dedicated work force, manufacturing and
marketing well-known brands such as:
Ideal Full Cream Evaporated Milk, Carnation Filled Milk, Carnation Tea Creamer, Milo,
Chocolim, Chocomilo Cerevita porridge, Cerelac Maize Milk And Cereal Wheat / Milk.

Nestle Ghana also imports and distributes brands such as: NIDO milk powder, lactogen
infant formula, NAN infant formula, Nescafe soluble Coffee, and Maggi Bouillons and
cold sauces.
SOURCE: www.nestleghana.com
http://business.everything.com/index.php?option

Nestle Ghana Ltd. is now seeking to capitalize on the goodwill enjoyed by it brand
chocolim, by introducing chocoless, a brand extension, aimed at generating growth for
the company.

RESEARCH RATIONALE
The purpose of the research is to identify whether the new product to be fully developed for
commercialization, would be accepted by the market profitably. The new product is a variant
of Chocolin, but with low cholesterol and sugar content, called Chocoless.

2.0 RESEARCH OBJECTIVES

1. Examine customer attitude toward new product Chocoless
1.1 What do users feel about the new product?
1.2 How do customers perceive chocoless?
1.3 What do buyers believe about the new products?
1.4 How do customers behave toward chocoless?

2. Determine competitive advantage of new product over what is currently available

2.1 Any superiority of new product to competitors offerings?
2.2 Any weakness in new product compared to competitors own?
2.3 How does chocoless packaging compare with what is currently available?
2.4 Would customers like to store more of chocoless than its substitutes?

3. Explore the likelihood of customers buying Chocoless

3.1 Will customers allocate a budget for chocoless?
3.2 What estimate of forward purchase would customer like to make?
3.3 How would customers like to buy chocoless as gift to others
3.4 Would customers buy chocoless repeatedly?

4. Find out likely price customers will be willing to pay

4.1 What price would customers consider to be fair and just?
4.2 How do customers perceive the going rate for chocoless substitutes?
4.3 Do customers consider the going rate for substitutes reasonable?

5. Identify key messages to be used to promote Chocoless

5.1 What kind of advertisement do customers enjoy most?
5.2 What messages for chocoless substitutes do customers dislike?
5.3 What is about chocoless that customers would like to see stressed?
5.4 What promotional message do customers recall readily?

3.0 RESEARCH APPROACH AND METHOD

In order to find appropriate answers to the five objectives stated in 2.0 above, both qualitative
and quantitative research method would be used.

QUALITATIVE METHOD:
1. Depth interview
2. Focus group

QUANTITATIVE METHOD:
Surveys (interview)
a. Hall Test
b. Placement test.

QUALITATIVE METHOD TO BE USED

a. Interview:
Depth interview

b. Focus Groups

a. Interviews:

This is the main method of qualitative research. This allows the respondents to candidly
air their opinion and views from which quantitative data would be collected and
processed into information and subsequently into knowledge for management decision
making.

I. DEPTH INTERVIEW
This is a psychoanalytical method of interview; questions are used skillfully to turn
respondent’s inside-out, as it were, by digging deep into their motives.

Respondents: Random sample of existing customer / users. The total number of respondents
to be interviewed in the depth interview is ten (10)

Duration: A single interview to last averagely for two hours but a maximum of three hours.

Interview Type: One - on – One

Recruitment: Respondents to be pre-recruited and requested to agree to the interview at a

specified time and place.

Interview Structure: A combination of completely opened, Semi – structured with interview

guide and a prototype product being tested.

Interviewers: two research executives will conduct the depth interviews.

Place of Interview: at home and in the place of work

Time span: 10 days.
Equipment to Use: Audio and video tape.

Incentives: Each participating respondent will receive (about £ 50) excluding travel
expenses.

JUSTIFICATION FOR DEPTH INTERVIEW

Skillful questioning help draw out hidden attitude or motives of respondents hence relevant to
attitude research on new product.

ADVANTAGES JUSTIFYING USE OF DEPTH INTERVIEW:

 i. In depth longitudinal information can be obtain from individual respondent at a
time. This eases interpretation and analysis of the information.

i. There is intimacy and hence there is easy accessibility to relevant personal

material which can aid discussions.

ii. Because of the degree of privacy respondents are more likely to open up and show
condor.

Depth interview has limitations which include:

i. They are time-consuming to carry out and analyze since each interview may take
between 1 and 3 hours.
ii.
iii. Depth interview are costly than, say discussion by a group. Travel expenses and
time spent has to be compensated for financially.
iv.
v. Sample of population of interest is usually small and hence may not be aptly
representative of target population.

FOCUS GROUPS

“Focus groups concentrate on discussion of chosen topics in an attempt to find out attitude.
They do have limitations despite advantages such as the ability to observe a whole range of
responses at the same time”

Source: Professional Certificate in marketing STUDY TEXT, marketing Information and

Research, for exams in 2008/2009 {© BPP Learning media Ltd 2008}

Billi Research Agency seeks to use focus group to gather qualitative data for Nestle Ghana
Ltd with the ultimate aim of generating information and knowledge useful enough for
decision making in order to achieve the 5 objectives of this research.

How focus groups discussion will be done:

 • Sample: From existing customers and potential customers each group will consist of
8 respondents selected randomly from the population of interest
• Number of groups: would be 10 implying a total respondents of 80 {10 x 8} for the
focus group research method.
• Time Scale: Each group would be interviewed for between an hour to three hours
maximum
• Recruitment: The research team would employ quota sampling. Respondents
suitability to feature in the focus group discussion would be determine by how they
answer a short questionnaire
• Incentive: Each recruited member of the focus group discussion will be given 50
pounds excluding travel expenses
• Material: The new Chocoless prototype would be examined by group members and
questions revolving sound if be asked
• Moderation: Each focus group will have a moderator who is experienced, skillful
and professional who will give all respondents fair opportunity to speak freely. The
group moderator introduces the topics for discussion, monitors and control the
discussion so that the discussion does not wander from the specific objective of it

Time Span: Research to be finished in 14 days

JUSTIFICATION OF USE: Help to determine views, perception and evaluation of

respondents hence useful for price, buying, messages (Promotion) and product research

ADVANTAGES THAT JUSTIFY USE OF FOCUS GROUP

• Group members can be easily observed

• It is inexpensive and timescale for it is short
• Group discussion is less intimidating than one-on-one discussion
• It is a source of useful qualitative data timely generated
• Reveals a range of attitudes: Different views of members about new product
 • The use of discussion guide by the group moderator prevents the discussion from
wandering away from the expected objective set for it
• Will provide a backdrop for a wider quantitative research
• Provide a social context for the population of interest

LIMITATION:

• A key limitation is about the small sample size of respondents since they may not
adequately be representative of the population of interest, namely potential
users/customer of the new product being tested.

• Lack of personal privacy may cause shy members to hold back from making full
contribution

• Not easy to identify what each group members said

3.1 QUANTITATIVE RESEARCH METHOD

The relevant quantitative research method that Bill Research Agency proposes to use for the
research on the new product concept testing is surveys

3.1.1 SURVEYS
Under Surveys the research agency would use Interviews, including Hall test and placement
test.
There are several Cardinal interview styles which are classified according to where they are
conducted.

But for the research to be undertaken, only two are relevant namely Hall tests and placement
Tests. The reason being that the research has to do with a new product concept and
respondents need to have a look and feel of the product prototype to be able to express the
opinion and motive, or attitude, about it in a practical setting for proper evaluation

(a)HALL TESTS:
 Here a suitable place would be pre-booked, and respondents chosen from potential
customer/users of the products under test would be taken there with the prototype product
of Nestle Ghana Ltd.

The prototype product would be tested by respondents so as to give their opinions about it
and evaluate it. Respondent would be asked to make declaration of how they would like
to buy and use the product in the future
Time Scale: Each respondent would have 25 minutes to test, offer opinion and evaluate

Incentives: Each participant in the test would be given {150 pounds} beside compensation
for travel allowance

Numbers: One hundred respondents would be recruited for five separate hall tests

Duration of test: The entire hall test is planned to take up to a maximum of 14 days

Participant: Seventy respondents would be selected from Clients Company’s customer and
thirty others chosen randomly from the general public

JUSTIFICATION: Help for life situation evaluation of new products by respondents who
would then make purchase projection for the new product. Useful in product and purchase
projection research

ADVANTAGES JUSTIFYING USE OF HALL TESTS

a. New product would be tested under a real life situation

b. The future potential of the product can be known by the reaction and
evaluation of the testers.
c. Participants recruited would more likely be representative of the
wider population of interest

LIMITATION OF HALL TEST

a. Just a 25 minute test of a product may not be enough t to pass a conclusive judgment
 b. Respondents bias or self interest and resistant to change may influence their
evaluation of the new product being tested.

PLACEMENT TEST
Helps for overtime informed evaluation of product. Useful for product, purchase, price and
message research

Here a prototype of the new product would be provided respondents to test in the homes and
report back by completing a short questionnaire given them along with an already addressed
and stamped envelope for delivering the questionnaire to any of the Agency’s offices or by
posting.

Incentives: Free samples of product plus 50 pounds plus travel

allowance

Geographical spread: All 10 regions of Ghana

Participants: 100 in all

Recruitment: customer-- existing and potential
Time span: 21 days

ADVANTAGES JUSTIFYING USE OF PLACEMENT TEST

i. Potential customers/users represented by respondents can have the opportunity to

test the new product prototype over time to have a better evaluation of it.

ii. Testing is not done in a rush or in the very presence of the Agency’s researchers,
hence the elimination of “researcher effect”

iii. Testing is done under practical scenario hence the evaluation is more credible than
short-period trials.
 iv. It could generate an idea of likely future behavior of customers/users of the
product.
DISADVANTAGE:
a. Its time – consuming and costly

4.0 TIMING
Research Method Time Span
Depth Interview 10 Days
Focus Group 14 Days
Hall Tests 14 Days
Placement Test 21 Days
Full Research time Span: 60 Days

TIME-SCALE FOR CLIENTS

Billi Research Agency proposes 21 days for client organization to review data collection
tools and provide supporting information necessary for the smooth take-off of the research.

5.0 FEES AND EXPENSES

Research Method Cost (£)
Focus Groups (10) 10,000
Depth Interview (10) 4,200
Hall Test (5) 10,000
Placement Test (20) 5,800
Total 30,000

Research Method Cost (£)

Incentives for Respondents 20,000
Materials 4,000
Respondents travel allowances 6,000
Contingency fund 5,000
Total 35,000
Grand Total: £ 65,000
Billi Research Agency to employ 32 Research Executives and field assistants

6.0 PERSONAL CV’S / EXPERIENCE AND REFERENCE

CV
The C.E.O. of Billi Research Agency is a Chartered Marketer.
Director of Research is a Chartered Researcher.
Research Executives are Research Professionals from recognized universities and
professional bodies.

EXPERIENCE / REFERENCE
Research conducted for reputable organizations including the following.

Research type Clients

Customer Satisfaction Guinness Ghana Ltd.
Market Potentials Sneda Motors
Viewership T. V. 3
Awareness level Unique Trust Financial Services
Intelligence Research State Insurance Corporation

CONCLUSION:
The research to be under taken is a comprehensive one covering areas like price, promotion,
product potential, probability of demand and customer attitude towards the new product
Chocoless Cocoa Powder. Various sampling methods including focus groups, Hall test and
placement test and depth interview would feature as key method for achievement of the
research objectives.

TASK 3 – SAMPLING
BRIEFING PAPER
TO: Marketing Manager (Nestle Ghana Ltd)
FROM: Research Executive (Billi Research Agency)
DATE: 5th June, 2009
TOPIC: Sampling For Market Research

1.0 This briefing paper is to explain clearly to the client company what sampling in marketing
research is and how it will feature in chocoless cocoa powder testing.

2.0 SAMPLING DEFINITION, METHODS AND EXAMPLES

2.1 SAMPLING DEFINITION
Sampling refers to the process by which a marketing researcher or research agency seeks to
find a representative group of a set of individuals, data, or items (a population) for the
purpose of questioning, testing or observing so as to obtain either qualitative or quantitative
data, or both.
The sampling process involves the following:
DIAGRAM
Population of interest definition

Sampling frame
Determination

Sampling method
Selection

Sample size
Determination

Implementation

Adapted from Malhotra (2004)

2.2 SAMPLING METHODS AND EXAMPLE

The technique used to select population of interest (sample) are grouped into one of two
types, namely
(a) Probability sample
b) Non- probability sample

a) Probability sample:
Probability sample is taken at random, thus there is equal chance that any individual
item within the population of interest could be selected to take part in the research.
This keeps the selected sample bias free.

Example: To take a random sample of people who drink cocoa drink when they go to
the La Beach Resort, it will not be good enough to take the random sampling on week
days since only a handful visit then. Weekends, Saturday, and Sunday’s are the days
of peak attendance at the resort and hence these would be the best days to carry out
the probability sampling.

2.3 Non-probability sampling

When it is impossible to draw up a sampling frame then non-random sampling is
employed. Non probability sampling has three methods under it, namely,

i. Judgmental sampling
ii. Convenience sampling
iii. Quota sampling

This method of sampling is left to the discretion of the researcher. He selects

respondents who have particular characteristics that are representative of the
population of interest.

Example: typical retailer may be selected from a certain area believed to be

representative of all retailers in the entire area.

i) CONVENIENCE SAMPLING METHOD

 This refers to samples which are selected because it is easy to get in touch with the
population of interest by the researcher.

ii) QUOTA SAMPLING METHOD

By this method a quota is set for researchers or investigation to meet. They are to
interview all people they meet up to a certain member or quotas. This method is
prone to be bias.

To illustrate: In our example of the La Beach Resort in Ghana, Accra, if a

researcher goes to the resort during a week day to interview, say, twenty
respondents as to whether they drink cocoa drink when the visit the resort, he is
not likely to interview a fair representation of the population, may be all those he
will interview during the week days are largely elderly males who are lonely at
home because their children had gone to work. The best days for the researcher to
get his quota would be Saturdays and Sundays which are the peak attendance
days.

3.0 Factors determining size of sample in marketing research

Some cardinal determinants of sample size for researchers and agencies like Billy
Research Agency include the following.

a. Availability of money and time

b. Number of sub samples required:
Some sampling method are intricate and complex; example, stratified sampling. If
such a method is to be used, then there is a need to have a large sample size so that
each subdivision or subgroup could be sufficiently represented for a more accurate
result.

c. Degree of Precision Required:

A research into the course of swine flu needs precise data. Where by the research into
how may people drink chocolim do not require a precise data.
 d. Industry standard or rule of thumb:
Certain industries have a specific benchmark sample sizes e.g. 200-300 for a
product test (Dillion et al, 1994)

4.0 DIFFERENCE BETWEEN SAMPLING ERROR AND NON-SAMPLING

ERROR
A. SAMPLING ERROR
Sampling error has to do with deficiencies or weakness which might occur in
the way a sample data is collected. The fault might also be in the design of
research methods.
Sampling error could take the following form.

i) BIAS
Unless random sampling method or quasi-random sampling method is use, it is highly
probable that some items data, individuals or households have poor, if not no, chance
at all of being selected for the sample. The sample then become biased and hence less
likely to be representative enough of the population.

2) A KEY FACTOR OMISSION

When Billi Research Agency researchers omit a cardinal factor from the question asked
respondents the results would be a sampling error. This would defeat the purpose or objective
of the research..

For example, objective 2 of the research brief seeks to find out whether the new product of
Nestle Ghana ltd has a competitive advantage or USP (unique Selling Proposition) over
substitute currently available. Respondents thus must be asked to compare the new product
against existing ones. If the interviewing researchers omits this key question and goes on
asking respondents how attractive the new product is without asking for comparisons, the
specific objective for this particular area of the research by Billi Research Agency would not
be realized due to the serious sampling error.

3) INSUFFICIENCY OF DATA
If, for example the respondents recruited for the placement tests are too small, say just 5 in
number, that would constitutes insufficient data which is unrepresentative of the total
population.

4) UNREPRESENTATIVE DATA
In the proposed hall test to be conducted by B.R.A for Nestle Ghana Ltd. 70% of the
respondents would be selected from clients company’s loyal customers and 30% randomly
selected from the general public.

Now if only 2% of those selected randomly eventually becomes true users/ customers of
Nestle Ghana Ltd. While the remaining 28% do not, this would result in unrepresentative data
of the population.

a. NON-SAMPLING ERROR
This refers to an error occurring in research findings due to the manner in which data is
collected.

Non- sampling error occurs due to any of the following.

1. Non response, say, to B.R.A’s Hall tests or to the completion of its short
questionnaire given to those selected for placement tests.

2. Respondents’ suitability: Some respondents will intentionally mislead B.R.A

researchers by intentionally given wrong answers or insincere opinions. Some may
suppress their motivation and overall attitude deliberately.

3. Poor wording of questions asked by Billion Research Agency investigator could result
in non-sampling error.

4. If B.R.A’s investigator or interviewer shows personal biases, the result will be in

accurate conclusion being drawn.
5. Purpose of research: if respondents mind is cleared of the purpose of the research it
may reflect in the type of quality of answers they would give to B.R.A researchers.

5.1 HOW SAMPLING AND NON-SAMPLING ERRORS AFFECT THE

VALIDITY, RELIABILITY AND ACCURACY OF DATA COLLECTED.
a. How sampling errors affect the validity,
1. BIAS:
When there is bias due to significant non-response, from respondents,
for example, it would create a data – vacuum in the study of B.R.A
leading to invalid conclusions. The result would be inaccurate and
unreliable data leading to incorrect information for decision makers.

2. OMISSION OF A KEY FACTOR:

If Bill Research Agency (A.R.A) researchers fail to ask a key question such
what price focus group respondents consider to be fair for the new product,
it could invalidate the data collect on price research as stipulated in
objective 4 of the research. This error would result in data inaccuracy and
hence could not be relied on.

3. DATA INSUFFICIENCY:
If instead of the proposed 100 to be recruited for the placement tests 10
were selected it will created data insufficiency that would affect the
credibility of the information generated.

4. UNREPRESENTATIVE DATA:
If the focus group proposed for the research a cross-section of the
population was not used, or in the quota sampling only young females were
sampled the resultant conclusion would be inaccurate, lack validity and be
unreliable.
 a. How Non- Sampling Error: Affect Validity, Accuracy and Reliability of
Data collected.
1) Non- response:
Non-respondents from, say, 30% of respondents for the placement test
to be undertaken by B.R.A research workers would affect the accuracy,
reliability and validity of the final finding.

2) WORDING DEFICIENCY:
Poor wording of research questions by B.|R.A research workers especially
where open ended unstructured questions are asked as in the depth
interview, buried attitude,, motive and affections cannot be drawn out thus
rendering the finding inaccurate, invalid and cannot be depended on.

3) PURPOSE OF RESEARCH:
Disclosure of purpose of the research to, say, the focus group for the new
product evaluation, could generate a “researchers effect” This will churn out
flattered findings which are inaccurate, not reliable and invalid for the
purpose of the research.

6.0 RECOMMENDATION OF HOW SAMPLING AND NON SAMPLING ERRORS

COULD BE REDUCED.

SAMPLING ERRORS REDUCTION

1. BIAS: B.R.A researches could reduce significantly bias due to non-response by
providing respondents with sufficient incentives and benefit such as financial and free
samples of the new product to use.

2. OMISSION OF KEY FACTORS (5)

B. R.A management would provide special training to its field workers and provide a
check list of key questions that must of necessity be asked respondents.

3. INSUFFICIENT DATA:
 If some respondents fail to provide response, other new respondents who are equally
representative of the non responding ones would be interviewed to fill the gap created
in the sample size.

4. UNREPRESENTATIVE DATA:
Here stratified sampling should be used alongside simple random sampling so as to
capture a more accurate representation of the population through up-to-date sampling
frame.

b. REDUCING NON-SAMPLING ERRORS

1. NON-RESPONSE:
Non-response could be reduced by attractive incentives to respondents
including cash and discount price for existing range of products by client
organization. The rationale and significance of the research to the
population should be effectively communicated to respondents.

2. SUITABILITY OF RESPONDENTS:
A short questionnaire for the purpose of screening respondents should be
produced to help sift out unsuitable individuals.

3. POOR WORDING:
Ineffective oral and written wording of research questions can be reduced
by structuring key questions and leaving periphery questions to the trained
interviewer’s experienced discretion.

4. PURPOSE OF THE STUDY:

In disclosing the purpose of the research in order for the respondents not to
experience a “researcher effect”, they should be well informed in advance
and assured that their condor is key to the purpose of the research.
SUMMARY:
Sampling is one of the most important marketing research tools. Reasonably large sampling
size helps for a more representative data of the population.
Sample that is too small could lead to a bias data on the population.