MARKETING RESEARCH

BAY MADISON: CASE ANALYSIS

Submitted by: Group 2 (Section C)

Ankita Pawar (17102)
Basappa Sagar K S (17105)
Shrinidhi M (17136)
Yadunandan C S (17146)
Varshanath M (17147)

Submitted To:
Dr. M R Suresh

SUBMITTED ON: 30-01-2018

Contents

Facts associated with the case ......................................................................................................... 1

National Research Associates Company ........................................................................................ 3
Progressive Research Group ........................................................................................................... 5
H J Clifford Research...................................................................................................................... 6
Consumer panel .............................................................................................................................. 7
Conclusion ...................................................................................................................................... 8
Facts associated with the case
The company Ellis had launched a product earlier, named as Rill, which can be used as
powdered cleanser. The product was launched in the year 1923. The product was initially
launched to be heavy duty cleansing agent to get rid of dirt and stains on the porcelain, metal
and ceramic surfaces of tiles. Unique property of the product was its bleaching, where users
wouldn’t have to scrub the surfaces to get rid of the stains. The company’s research
department developed and added an additional ingredient in 1936, which left a light and fluffy
texture to textile products when washed in a mild solution of Rill, which forced the company
to promote the product as both powdered cleanser and laundry wash additive. The promotion
was carried out in the fashion, where Rill was portrayed as:

 Powdered cleanser in 50% of its promotion

 Laundry additive in 30% of its promotion
 Dual purpose product in its 20% of promotions

Rill was produced and distributed in three variety of sizes, where in its initial years i.e. from
1970 the sales were reducing due to higher competition from other nationally distributed
firms. The company was in a huge dilemma whether to promote the product as a laundry
additive or cleanser or a product which can act as both. They had the data with them with
quantitative information like margins, outlets, unit sales etc. In return of this company
expected to get to know the qualitative information such as consumer attitude towards their
product, patterns of user usage of the product, opinions on the product and also about the
company in order to prepare the marketing and advertising strategies.

Bay Madison Inc., was chosen for the task to conduct the thorough study on Rill product and
the company. Mr George Roberts, was the director at Bay Madison Inc., had designed a
research proposal and invited six marketing research firms regarding the following
information:
An appraisal of the proposal and suggestions for any changes:

a) A price quotation on the project as outlined and including any suggested changes
b) A brief description of the staff who would handle the project
c) Time required for preparation, implementation, tabulation and final presentation
d) Pilot testing suggested
e) Detailed explanation of suggested sample size
f) Information on the firm’s executive personnel, interviewing staff and
g) Projects handled over the preceding two year

The research proposal consisted of the marketing problems, objective of proposed research,
broad suggestions regarding research methodology and a proposed questionnaire.

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Hence to accomplish this purpose Bay Madison invited research proposals forms from various
research firms. Among them three were shortlisted and the proposals were expected from
those firms. The firms shortlisted are as below:

1. National Research Associates Company

2. Progressive Research Group
3. H J Clifford Research

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National Research Associates Company
Introducing the Firm
 National Research Associates is one among the reputed and recognized leaders in the field
of Marketing Research in US.
 It has conducted more than 400 separate and varied research projects since its establishment
in 1954.
 It has over 2 decades of rich experience, having highly qualified teams to work on the
research projects.

Sample Size & Methodology:

The company offered to interview 2275 housewives on face to face basis and 600 in-depth
interviews.
Face-to-Face interview would help in knowing the competitive position of RILL & In-depth
interviews would help to know the “reason why” RILL is in the present position by discovering
the attitudes, perceptions and feelings towards the product and its’ uses through their research
study.

Here the company has undertaken three type of research:

1. Exploratory
2. Descriptive &
3. Causal

Analysis:
In order to analyse the data collected through the interview various techniques were proposed to
employ:

1. The Personification Test:

This method involves an attempt on the part of the respondent to describe certain products in
human terms and this would provide an opportunity for the expression of attitudes and opinions.

2. The Thematic Apperception Test:

It consists of presenting to the respondent an unstructured drawing of a particular situation and
asking him to create a storyline of what is happening.

3. Word Association Test:

Here the respondents are asked to relate what comes to mind when given a word or phrase is read
to them.

4. The Semantic Differential Test:

This method helps in providing insights and information regarding to the perception of company
and product attributes.

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In order to evaluate the relative effectiveness of various merchandising, advertising stimuli and
effectiveness of the RILL package and label in comparison with those of major competitors many
laboratory studies were undertaken like:

a. Attention-getting tests
b. Product recognition tests
c. Brand identification tests
d. Visibility and legibility tests
e. Memorability tests
f. Apparent size tests
g. Color preference and association tests

Cost and time for the research:

According to the company the research would be done in 12 weeks’ time and the cost is
estimated at $ 52000.

Approach:
Tactical – Very detailed

Verdict:
• All research questions answered
• Detailed description of the findings of the research

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Progressive Research Group
Introducing the firm:
 Began its operations in 1948, and is one of the oldest Marketing Research companies.
 In order to prepare more economical, complete and detailed client reports the company
possesses most advanced computer equipment in the country and continuous
improvements are being adopted.

Sample size and Methodology:

A National sample of 750 home-makers in terms of region, socio-economic group, urban-rural,
and the like would be interviewed. The methodology would include interviewing with the help of
questionnaires and in order to make sure that the sequence and phrasing are of such a nature as to
be understandable, to get cooperation, and to obtain unbiased replies, a field test of 100 home-
makers is proposed.

Problem according to the company

The company is under the impression that two major uses of RILL may, in combinations, affect
the market negatively and women may think of it primarily in one sense or the other and those
who regard it as a cleanser may not be willing to use it as a laundry additive, or vice versa.

Proposal
The company proposed a consumer study covering the major areas of behaviour and attitude
including:
1. Brand Personality and image for each of several cleansers & laundry additive products
(Including RILL)
2. Habit pattern on home cleaning and laundry additives (including products used)

Approach
Strategic – Not very detailed

Verdict
• Multi use product application not covered
• Lack of detailed mention of the findings of the research

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H J Clifford Research
This is one of the most reputed firms, which is considered to be one among the best research firms
in the country.

Roberts is afraid if the data provided were sufficient for the researchers to submit a detailed plan.
Like Roberts’ intuition, HJ Clifford doesn’t give a detailed plan, instead says that more data is
needed to carry on research and also that their way of working requires continuous cooperation
between the company, agency and the research firm.

The firm’s research is strategy oriented. Thus there is a need to meet the company and fetch the
exact details of what is required from the research, what is feasible and what isn’t in company’s
perspective.

Verdict

Since the purpose of this research involves strategic change of the company’s product profile, HJ
Clifford wants to meet the client directly, to understand the needs of the company and also the
feasibility of the advice following the completion of research.

The case says that the client wants to arrive at a decision quickly. But this method would demand
time, for the strategy is involved. Hence, Bay Madison should try and buy some time from the client
to get the research plan, estimated time and cost from HJ Clifford. If the client agrees to it, then the
proposal from National research could be kept on hold until HJ Clifford proposes its plan for later
comparison and final decision.

In case the client isn’t willing to wait any further, Bay Madison should negotiate with National
research to reduce the cost and to make their proposal a little concise by eliminating the unnecessary
parts in the same.

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Consumer panel

A consumer panel is an approach in which same group of respondents are contacted at periodical
intervals and data on actual purchase behaviour is collected to build time series data. The group of
respondents is representative of the population.

 Mr. Jacks initiative

 Analysis of consumer panel data
 Most economical alternative - $17000

Cost of Research
• Analysis cost $9000
• Data compilation cost $2500
• Mr.Jacks’ salary $5000

Verdict
• We can only get the purchasing behaviour but predicting the usage of the product cannot be done.
• Lack of experience in research
• Consumer panel data may not offer variety
• Ambiguity in the case about the exact findings
• Research capabilities of Bay-Madison Inc, an advertising agency

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Conclusion

The purpose of this research involves strategic change of the company’s product profile,
Progressive research group expects to meet the client directly and get to know in more depth of
their requirements and the feasibility of the advice following completion of research. This
approach requires more time but it meets client requirement if the client have sufficient time we
suggest this study. From the case we know that the client wishes to arrive at a decision quickly.
Hence Bay Madison should try and buy some time from the client to get the research plan,
estimated time and cost from HJ Clifford. If the client is willing then the proposal from National
research will be kept on hold till the receipt of plan from HJ Clifford for later comparison and final
decision. In case they are not willing to wait further for the decision, Bay Madison should negotiate
with National research to reduce the cost and to re-design the research framework included in the
research plan sent by them.