breezer report

36
MKT5612 Applied Marketing Research MARKETING RESEARCH PROJECT Content Executive Summary 2 1. Background Information 2 1.1 Company Background 2

Upload: vincenyyyyyyy

Post on 24-Nov-2015

60 views

Category:

Documents


2 download

TRANSCRIPT

MARKETing RESEARCH PROJECT

MKT5612 Applied Marketing ResearchMARKETing RESEARCH PROJECT

ContentExecutive Summary2Background Information21.1 Company Background21.2 Marketing Decision Problem Definition21.3 Marketing Research Problem Definition21.4 Research Design31.5 Survey Sample Overview3Research Overview4Findings and Analysis43.1 Findings #1: Understanding of the alcohol market43.2 Findings #2: Current Usage Behavior63.3 Findings #3: Brand Measurement93.4 Findings #4: Media Habit and Promotion12Hypothesis Analysis134.1 Hypothesis #1: Understanding of the alcohol market134.2 Hypothesis #2: Current Usage Behavior154.3 Hypothesis #3: Current Usage Behavior17Recommendations19Limitations20Appendix21

Executive summaryThis project would explore the market performance of Bacardi Breezer by sending questionnaires to the category recognizers of FAB (Flavored Alcoholic Beverage) drinks or the customers of Breezer. The questionnaire contains questions about the demographic information of the respondents, product usage behaviors, brand awareness measurement, media habits and promotion methods, and the hypothesis test analysis on the respondents attitude variation among different subgroups or attitudes. Based on the data collected, some research findings could be carried out and some suggestions for the future development of Bacardi Breezer could be generated based on the theoretical analysis. The software and technical supports acquired in this research includes Quatrics ((http://www.qualtrics.com/ ), SPSS, Microsoft Office etc.

1. Background Information1.1 Company BackgroundBacardi Limited is the largest privately held, family-owned spirits company in the world. Originally known for its eponymous Bacardi white rum, it now has a portfolio of more than 200 brands and labels. The brand that would be discussed in this project is Bacardi Breezer, which is categorized in RTD FAB (Ready To Drink, Flavored Alcoholic Beverage) business of Bacardi. In China, the FAB market has been expanded fast during the past few years. In 2014, the predicted consumption amount of FAB reaches 6100 million Liters (Source: Data-monitor). However, the fast growth of FAB in China market has brought Bacardi few improvements, the Breezer business in China market has been growing quite slowly. The reasons behind this phenomenon would be explored in this project and some suggestions for Breezers future development would be carried out. Due to the limited knowledge known about the customers, some marketing research methodologies would be adopted to enable the writer to have better understanding of the targeting and potential customers of Breezer. 1.2 Marketing Decision Problem DefinitionIn this project, the management decision problem (MD problem) is defined as to develop a strategic plan for the future development in China market based on the comprehensive understandings of targeting customers. 1.3 Marketing Research Problems DefinitionBased on the MD problem, the marketing research problems (MR problems) are defined as following: To understand customers current usage behaviors and attitudes towards Breezer; To compare Bacardi Breezers brand image with that of its main competitors; To investigate the welcomed media channels and promotion methods to the targeting customers1.4 Research Design Sampling method: Samples used in this research were collected through the online questionnaire survey via Qualtrics (http://www.qualtrics.com/ ). Respondent criteria: The respondents in the survey include both male and female, and they are required to be alcohol non-rejecters who have tried FAB products during the last 3 months. Besides, the respondents shall be the people who are able to recognize the key brands in FAB category, such as Breezer, RIO etc. City coverage: Based on the results, the living places of the respondents cover several cities, including the tier 1 cities, for example Beijing, Shanghai and Guangzhou, and also tier 2/3 cities, such as Xian, Wuhan and Chengdu. Sample completion: This survey has collected 189 responses in total, among them, 157 are valid samples considering the completion level and reasonableness, the valid response rate is 78.9%. 1.5 Survey Sample OverviewAmong the 157 valid responses, some basic understanding of the demographic information from the respondents could be shown as following:

Exhibit 1

2. Research Overview:This project contains 5 steps to carry out the final suggestions and strategic plan to the object brand, Breezer. The analysis process is listed as following: 1. Understanding the alcohol market: This part is designed to have an overview of the current situation of FAB in China market, including the category recognition of FAB, brand awareness of the drinks, etc. 2. Current customers usage behaviors:This part would mainly explore the consumer usage behaviors through the key Ws terms (including Where, What, (with Whom), Why). 3. Brand measurement: In this part, the brand image of Breezer would be compared with its main competitors in the FAB category, such as RIO, Kirin and Reloaded Red etc. the results of the comparison shall be able to show some of the customers key considerations and perceptions towards Breezer. 4. Media habit/promotion methods: This part would discover customers media habits and their favorite promotion methods, in order to make proper promotion and advertising plans in future. 5. Hypothesis analysis: This part is designed to explore whether the respondents attitudes would vary among different subgroups or attributes, details of the analysis would show in latter part of the report.

3. Findings and Analysis3.1 Findings #1: Understanding of the alcohol market3.1.1 Popularity of FAB:Based on the results of the questionnaires, it can be seen that beer and wine are still the most popular alcohol drinks in China market, while the category FAB takes the 3rd place, namely 45% of the total. This result may indicate that the FAB drinks in China have rich customer resources and it is widely accepted by the public.

Exhibit 23.1.2 Key players in FAB category:A table can be generated by summarizing the packaging, volume, flavor and price of the main brands in the FAB drinks market nowadays in China:

Exhibit 3From the comparison, it can be indicated that Bacardi Breezer seems to provide different flavors at a reasonable price. A potential limitation of Breezer might be that it only has the bottle packaging, while RIO and Kirin also provides can packages.

Exhibit 4Considering the brand awareness of the four brands, Bacardi Breezer takes the top among the competitors, and it also has the highest conversion rate (from visitor to buyer). RIO is the brand follows the figure of Breezer closely, therefore it is a powerful competitor of Breezer. Due to few respondents mentioned their experiences on drinking Reloaded Red (5 aware and 3 trial), this brand would not be discussed in latter part.

3.2 Findings #2: Current Usage Behavior3.2.1 Key Ws The key Ws including where: where is the most often consumed place? What: what is customers favorite flavor and consumption volume? Who: drink Breezer with whom? Why: why people drink Breezer for the first time and what are the triggers? WhereIt can be seen clearly from the chart that among Breezer users, KTV is the most often consumed place, accounts for 33%. At home during meal ranks 2nd accounts for 26%. However, in bar/pub consumed less compared with KTV.

Exhibit 5

WhatAmong Breezer tried respondents, lime is the favorite flavor has a percentage of 39, followed by lemon, blueberry, peach, grapefruit and orange.

Exhibit 6For the consumption volume, 70% of respondents choose 1 bottle per time. The mean for consumption volume is 2.74 and median is 2. Exhibit 7There are also some improvement areas supposed by the respondents. 48% of respondents hope to develop new flavor, such as mix fruit flavor. 29% of respondents want a price reduction. And 10% of respondents hope to improve the cap design to open the cap easily, that is to say unscrew the cap with hand and does not need a bottle opener.

Who Breezers customers are shown as follows:There are more female customers than male customers. 53% of the respondents age range from 25 to 34. There are 8% more respondents from tier 1 city than tier 2/3 city. Most of the respondents have a bachelor or higher degree and monthly income is RMB 3,000- 4,999 accounts for 53%.

Exhibit 8Among Breezer users, they often drink Breezer with friends, schoolmate and colleagues, accounts for 88%. It means that Breezer is a drink can share with friends. However, there is also 23% of the respondents choose to drink Breezer alone.

Exhibit 9 Why54% of respondents first time drink Breezer because of the good-looking product/liquid color. 49% of respondents drink due to others recommendation. In addition, diverse flavors, good-looking package color, intention to try and moderate alcohol level were chosen almost equally, accounts for 39%, 37%, 33% and 32% respectively.

Exhibit 10

3.2.2 Breezer purchase channel Convenience store is the channel Breezer users purchase most. Meanwhile, hypermarket ranks 2nd accounts for 30%. However, respondents purchase less in bar/pub and nightclub. Exhibit 11

3.3 Findings #3: Brand Measurement3.3.1 Breezers Performance on Key Attributes Compared with its Competitors in FAB CategoryIn the questionnaire, first it requires respondents to give importance to each listed key attributes and then rate for the key attributes of different brand. The key attributes includes high brand awareness, good taste, variety of flavor choice, beautiful color of products, stylish package, fashionable brand image, reasonable price, easy to buy, variety of package volume and variety of package format. Among the attributes, Breezer performs better in high brand awareness and beautiful productscolor. Meanwhile, Rio performs better in variety of package format and variety of package volume. What Breezer can improve is to increase the variety of package format and package volume. For example, to launch can format or sharing package. When compared with Kirin, Breezer performs well on high brand awareness and beautiful color of products. Kirin performs well on price. Breezer can make improvements on price attribute.

Exhibit 12

3.3.2 Performance on Key Attributes- Dual usersCompared with Rio, Breezer performs better in brand awareness, product design and package, such as taste, product color, and variety of flavor choices, stylish package. Rio performs well on varieties of product format and volume, which means that Breezer has a plenty of room to improve in the variety of package format and package volume.

Exhibit 133.3.3 Breezers Brand PerceptionBased on the performance of Breezer on the listed attributes and the importance respondents given to each attribute, it can draw the following map to find out which aspect Breezer did well and which aspect Breezer need to improve. Exhibit 14The attributes on the top right corner are those have a good performance and rated higher importance by respondents. It can be seen clearly from the following chart that it is good to keep Breezers stylish and colorful package. The attributes in the left top corner are those have a good performance but respondents rated lower. It is nice for Breezer to have good taste and reasonable price. What is more, the attributes on the left bottom corner with lower importance mean that although it does not perform well, but it does not matter. Additionally, the right bottom corner is the attributes Breezer needs to improve. Breezer can improve its products on variety package format and package volume.

3.4 Findings #4: Media Habit and Promotion3.4.1 Information Channel - AlcoholFriends recommendation is the most popular information for the alcohol followed by social network, portal website, and TV advertisement.

When compared the Breezer information channel with the alcohol information channel, it can see clearly that Breezer needs to improve its information channel on social network, TV advertisement. Because customers get information from those channels often.

Exhibit 153.4.2 Welcomed Promotion MethodsThe most welcomed promotion method is direct discount accounts for 58%. Customers are also interested in buy one get one free activity and new product free tasting activity, accounts for 46% and 41% respectively.

Exhibit 164. Hypothesis Analysis4.1 Hypothesis #1:As far as we are concerned, female and male consumers may have different attitudes towards alcoholic products. Generally speaking, there is a common conception that female may prefer low concentration alcoholic beverage while male may prefer strong liquor. If it is true, the female and male consumers may value our product differently. Therefore, we want to find out the gap between female and male consumers in terms of the importance of our product 10 different attributes.4.1 .1 Process:Recoding: we recode the gender, grouping to 1=female and 2=male Question: we want to know do the mean differences of the 10 attributes importance ratings between female and male make statistical sense. Separately we can make 10 questions, namely does females attitude towards brand awareness significantly differ from males, does females attitude towards taste significantly from males, and etc.Test: Independent Simple T TestHypotheses: H0: A1m = A1f (females attitude towards brand awareness doesnt significantly differ from males)H1: A1m A1f (females attitude towards brand awareness does significantly differ from males)Repeatedly, we can make 9 more hypotheses in terms of the 9 other attributes.

4.1.2 Result

1. Significance TestingFor stylish package, firstly, We use the Levenes Test (based on F-statistic), p-value =0.011