QUALITATIVE MARKET RESEARCH

Sales drop in Fairness cream segment

Research Proposal
Harish Babu R 2012PGP121

2013

Individual Assignment

Abstract: In this report we are going to study, the reason that caters to sudden market change through qualitative research. In effect, we are going to consider skin care products Fair & Lovely. Here we will proceed by knowing the problem in the skin care industry followed by appropriate qualitative method used for collecting data from the appropriate respondents and the rationale behind it. Finally, from the collected data we will be able to find the answer. About Fair and Lovely: [1] Several decades ago, a scientist working at Unilever's research center in Mumbai, India asked a question no one had before - If less Vitamin B3 in the body could lead to pigmentation, could the reverse be true? After extensive research, it was proven that Vitamin B3 could indeed lighten the skin. And thus, Fair & Lovely, the worlds first safe and effective skin lightening product, was born and launched in 1975. Today, at the heart of this technology is Unilevers synergistic combination of Niacinamide and triple UVA+UVB sunscreens (which give broad spectrum UV protection).The key player in our active mix is Niacinamide (Vitamin B3), which has been proven time and again to be a safe, reversible cosmetic skin and spot lightening agent. A unique blend of Vitamin B3 along with Vitamin C, Vitamin E and Vitamin B6 boosts the core efficacy of the product by providing potent antioxidants, added spot lightening and healthy skin benefits. Other actives, such as glycerin (the worlds best known moisturizer), allantoin (a skin benefit agent) and skin identical fatty acids (e.g. stearic acid) also help contribute to delivering overall great skin appearance. These multiple ingredients work on different steps in pathways that are known to regulate and affect pigmentation and general skin appearance, and thus have a gentle yet perceivable effect on darkened skin; spots and overall skin tone, thereby delivering expert treatment like fairness. Current Scenario of fairness category and FAL:

Figure 1: Data with respect to skin care industry

From the data and from figure 1it is evident that there is slow down of value and decrease in volume of fairness product. Research Objective: What are all the factors lead to decrease in volume share and value share of Fairness cream category???

Figure 2: Basic questions related to Research objective

Qualitative technique for collecting data: In-depth interview, Focus Group Discussion and observation are the research methodology recommended. Problem can occur in three level Firm level, Customer level, and consumer level. In this case problem is solved by above three methods in the way depicted in figure 3. Research Methodology / Approach: In-depth Interview: The in-depth interview explores a topic in detail to deepen the interviewers knowledge of the topic. Open-ended refers to the fact that the interviewer is open to any and all relevant responses. There are no correct answers, and the interviewee is not asked to select from a series of alternative choices. Ordinary conversation is the most common form of information collection. The in-depth interview merely extends and formalizes everyday conversation. This type of data collection is different from the structured or standardized interview, where the respondent receives questions with fixed response categories. The in-depth interview, while focused, is discursive and allows the researcher and respondent latitude to explore an issue within the framework of guided conversation. [2]

Figure 3: Problems in each level and respective research methodology This can be used in FAL, and with the conversation obtained we will be able to find out why people are using fairness cream and what probe them to use it. This method is implemented among non-users and we will be able to find out the alternatives for fairness creams. From the old users we will be able to find the reason why they Si. No. 1 2 3 Respondent type Reason Current users To know what probe them to use it Non-users To know about the alternatives Ex-users To know about the problems they had undergone Table 1: Segmentation of respondents

are not using fairness cream now. No. of Respondents: 10 from each segment given above Sampling Methodology: Maximum Variation sampling so that we can get lot of options Age: 18-40 female Questionnaire: Exhibit 1 Focus Group Discussion: Holding a focus group discussion is a good way to learn about peoples interests, perspectives, opinions and knowledge about different topics. Knowing the perspectives, attitudes and desires of your target audience is essential to developing relevant video content, support services, and dissemination approaches. [3]Focus groups can be used at the preliminary or exploratory stages of

a study during a study, perhaps to evaluate or develop a particular program of activities or after a program has been completed, to assess its impact or to generate further avenues of research. They can be used either as a method in their own right or as a complement to other methods, especially for triangulation and validity checking. Focus groups can help to explore or generate hypotheses and develop questions or concepts for questionnaires and interview guides They are however limited in terms of their ability to generalize findings to a whole population, mainly because of the small numbers of people participating and the likelihood that the participants will not be a representative sample. [4] This method should be applied to customers (i.e. retailer, distributors etc.). Suppose if we conduct in-depth interview among individual customers then every will have their own bias (for example, one might be saying lesser margin etc.). But under Focus Group Discussion the biases can be reduced to maximum level. This method is used to know about trend among the consumers and sometimes to know about decision makers (i.e. who make the decision). Loyalty of the consumer well known to retailers, from Focus group Discussion we might know about loyalty of the consumer since this is the type product which is under heavy competition. No. of respondents: 10 per group (5 groups minimum) It is important that all the members in a group should have diversity so that we can reduce the bias. Sampling: Maximum variation sampling so that we can get lot of options Moderator: Moderator should able to create convenient environment for the respondents and should get information from all the respondents regarding the questions given below Questionnaire: exhibit 1

Observation: Observation is way of gathering data by watching behavior, events, or nothing physical characteristics in their natural setting. Observations can be overt (everyone knows they are being observed) or covert (no one knows they are being observed and the observer is concealed). The benefit of covert observation is that people are more likely to behave naturally if they do not know they are being observed. However, you will typically need to conduct overt observations because of ethical problems related to concealing your observation. Observations can also be either direct or in direct observation is when you watch interaction processes, or behaviors as they occur, for example, observing a teacher teaching a lesson from a written curriculum to determine whether they are delivering it with fidelity. Indirect observation are when you watch the results of inter actions, processes, or behaviors; for example, measuring the amount of plate waste left by student in a school cafeteria to determine whether a new food is acceptable to them.

Here observation is used to find the effectiveness of product placement in the shelves compare to competing product instead of competitors product by a firm (i.e. it is used to find is there any problem with marketing of this product). Most of the competing products are able to charge premium compare to FAL since it caters to mass segment so observation necessary to find the defect in marketing of the product. It is also useful to find the behavior of the consumers in this category. No. of Respondents: more than 100 Method: Indirect it will give the original picture of the consumer and the marketing effectiveness of the firm. Plan for Data Analysis: Step 1: Transcribing the data Step 2: organizing the data Step 3: Give codes to the first set of field notes drawn from observation, Focus group Discussion and observation Step 4: Note personal reflection or other comments in the margin Step 5: sort and shift through the materials to identify the similar phrases, relationship between variables, patterns, themes, distinct difference between subgroups and common sequences Step 6: Identify these patterns and processes, commonalities and differences and take them out to the field in next wave of data collection Step 7: Begin elaborating the small set of generalizations that cover the consistency discerned in the database Step 8: Examine those generalization in the light of formalized body of knowledge in the form of constructs or theories Expectations from the research: By analyzing the above data we will be able to find the factors lead to reduction in volume and value share of this category and stigma attached with the consumers for buying the fairness cream. Since this experiment is from all the three levels it will give whole picture for the reduction in this category. Multiple researches are methods are used in order to avoid the biases.

Exhibit 1: In depth interview should be done for other fairness cream user like Fairever etc. since FAL is category leader conducting research from FAL user will give clear picture. But to get complete picture it should be done for fairness cream segment following question are adjusted according to the product In the in-depth interview 1. Why do you use fair and lovely?(FAL users) 2. Why dont you use fair and lovely? 3. Does it creating value it promised? 4. Tell what you love most about FAL? 5. Have you ever undergone any problem while purchasing FAL? 6. Who suggested you FAL? 7. When did you start using FAL? 8. Can you elaborate on the problem you have gone through? 9. Have you used complaining service from the company? 10. How was the servicing division of the company? 11. Are you aware any campaign against fairness? 12. Does any of the campaign or any other event change you attitude toward FAL or fairness cream? 13. What type skin care product you are using now? 14. Why did you shifted to current product? 15. Who suggested the product which you are using currently?? FGD: 1. 2. 3. 4. 5. 6. 7. What is attitude of loyal consumer towards FAL from last few years? Who is the key decision maker for this type of products? Have you undergone any problem with company/distributor? How the product placements on the shelves affect this category? What is your view on sudden change of consumers from fairness to skin care segment? How about the margins that you get for all the skin care products? Have consumers complained about FAL?

References: 1. 2. 3. 4.
http://www.fairandlovely.in/aboutus/aboutus.html http://www.pra.ca/resources/pages/files/technotes/indepth_e.pdf http://ictforag.org/video/downloads/com-05r-wkst-focus-group-discussion-guide.pdf http://sru.soc.surrey.ac.uk/SRU19.html