QUALITATIVE MARKET RESEARCH

Individual Submission

KUMAR ABHISHEK
2012PGP178

Market research process

These are the general steps for a normal market research activity: Stage 1: Formulating the Marketing Research Problem The research problem is derived from the management decision problem Stage 2: Method of Inquiry Stage 3: Research Method Stage 4: Research Design Stage 5: Data Collection Techniques Stage 6: Sample Design Stage 7: Data Collection Stage 8: Analysis and Interpretation Stage 9: The Marketing Research Report

The Problem
Management Problem To increase the presence of H&M in India and tap the growing Indian middle class population. Research Problem: Is there a market for H&M products? Will expanding the network (in terms of number of stores) help increase sales? Considering that Inditex makes 20% of sales in Asian region, is there a place for H&M.

Qualitative techniques suggested

I propose a mixture of techniques to address our research problem: Focus group discussions: Covert participant observation Analysis of secondary data available

Respondents
The respondents should be from one of the following tier I, tier- II cities such as:

Tier- I Cities Bangalore Chennai New Delhi Hyderabad Kolkata Mumbai

Tier- II Cities Ahmedabad Pune Jaipur Jalandhar Vizag Warangal

The respondent could be either male or female (ideally the sample should have an equal representation) Age group: 18 + years (as the products are used/ purchased by customer who are above this age) Since the major means of study is Focus group discussions, I propose the use of cluster sampling wherein, many similar clusters (same respondent profiles in the same proportion). The ideal cluster size is, 10 respondents as more than 10 will harm the usefulness of the discussion The FGDs should be carried out separately for each city. That is, the clusters for each city will be identical, and not necessarily across the cities.

Data collection guide

1. The focus group moderator nurtures disclosure in an open and spontaneous format. The moderators goal is to generate a maximum number of different ideas and opinions from as many different people in the time allotted. 2. The ideal amount of time to set aside for a focus group is anywhere from 45 to 90 minutes. Beyond that most groups are not productive and it becomes an imposition on participant time. 3. The ideal amount of time to set aside for a focus group is anywhere from 45 to 90 minutes. Beyond that most groups are not 4. It takes more than one focus group on any one topic to produce valid results usually three or four. 5. Focus group participants wont have a chance to see the questions they are being asked. So, to make sure they understand and can fully respond to the questions posed.

6. The participants should be recruited as mentioned earlier (cluster sampling) 7. Homogeneity is key to maximizing disclosure among focus group participants 8. Once a group of viable recruits has been established, call each one to confirm interest and availability. Give them times and locations of the focus groups and secure verbal confirmation. 9. Invite more participants than necessary to compensate for potential loss due to some participants not turning up 10. Offer monetary incentive to the participants who turn up 11. Tell participants that the focus group will take about one and half to two hours. Give them a starting time that is 15 minutes prior to the actual start of the focus group to allow for filling out necessary paperwork, having a bite to eat, and settling in to the group. 12. Arrange for a comfortable room in a convenient location 13. Preferably have both a moderator and an assistant moderator 14. Take notes as well as record the discussion 15. Have name cards to identify participants

Questions to be asked Before starting the discussion, have an ice-breaker question Set the ground rules and inform the participants of the same 1. 2. 3. 4. 5. 6. 7. 8. Do you know H&M Products/Offerings Have you ever used H&M products? If yes which ones. Where do you purchase H&M Products from? Would you be purchasing H&M products if there are new company outlets in your city? Do you know IndiTex Products/Offerings Have you ever used Inditex products? If yes which ones. Would you be purchasing H&M products instead of IndiTex if there are new H&M company outlets in your city? If there is not much difference between the product of H&M and IndiTex, which would you prefer? Some questions to probe more Can you talk about that more? Help me understand what you mean Can you give an example?

All through, carry out covert observation of the participants Try to understand what sort of person, the participant considers as a influencer (helps understand the source through which WOM has an impact) Use secondary data to estimate The profitability of venture Market potential Extent of distribution network required

Analyse the results of the study both quantitatively and qualitatively. The analysis of the secondary data will yield quantitative results, which will have to be followed with the qualitative research as outlined earlier. Expected results of the study: Will there be sufficient demand for H&M products How will the sales be affected by having a store present in the city? How much it can compete with Inditex products. The study will give us general view of the customers, but a few specific opinions shared by some respondents can be highly useful, and can be used as an insight for future.