However, those data must be relevant, accurate, current and impartial.
Primary data is that information collected for the specific purpose at hand. It can be obtained by three researches/ approaches. They are observational approach, survey research and experimental research.
Observational approach is gathering primary data by observing relevant people, action and situations. It can be gathered through mechanical observation, such as people meters (attached to TV’s) or checkout scanners (in retail shops).
Survey research is gathering primary data by asking people questions about their knowledge, attitudes, preferences and buying behaviour. It is the most widely used method and often the only one used. It is the best way to gather the descriptive information.
Experimental research is gathering of primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors and checking for differences in group responses. It is the best way to gather the causal information. There are various kinds of contact methods, they are: mail questionnaire, telephone interviewing, personal interviews either by individual or group interviewing, computer interviewing and online (internet) marketing research.
Marketing Information System
The marketing information system (MIS) consists of people, equipment and procedures to gather, sort, analyse, evaluate and distribute needed, timely and accurate information to marketing decision makers.
It interacts with the marketing managers to assess information needs. It also develops needed information from internal company data, marketing intelligence activities, marketing research and information analysis. It distributes information to managers in the right form and at the right time to help them make better marketing decision.
Consumer Behaviour
It is related to the purchase and consumption behaviour of consumer. It is also vary from one product to another, or even from one use to another of the same product. Economic factors, personal income, economy, price, age and life cycle, age groups, traditional life cycle, occupation, values and lifestyle, culture, geography, peer pressure, social class and organization may influence the consumer behaviour.
Illustrate your answer by using the organization that you work for as an example – how does it research its markets, select which customers to target, and makes its marketing decisions?
Content
1.1 Introduction
2.1 Company Background
3.1 Forming The Working Groups
3.2 Preparation Works Before Doing The Marketing Research
4.1. Defining The Problems/ Research Objective
5.1 Developing The Research Plan
5.2 Gathering of Data
6.1 Sampling Plan
6.2 Research Instruments
6.3 Research Approaches
7.1 Implement The Research Plan
8.1 Recommendations
Introduction
In the report, we will study the company of Vitaland Services Limited, in which the marketing department is trying to understand the consuming behaviour of students by doing a specific marketing research. The more important is that by focusing on the findings, it helps manager to make a more precise decision and draw a picture for the future marketing strategy.
The General Manager of Vitaland Service Limited, Mr. David Kwan said, ‘The reward from the customer satisfaction is not only for the profit return but also for the loyalty of customers.’ It’s the belief of company that business should be responsive to the environment, obligation to the society and responsible to the society. In order to establish a good image and seek for survival in this ever-changing business environment. The final goal is to achieve for the long-run profit.
By doing so, we need to define the problem and research objectives, develop the research plan, determine specific information needs, implement of the research plan and interpreting and reporting the findings. Of course, there will be a recommendation for the management after the implementation of the research plan.
2.1 Company Background
Vitaland Services Limited is the wholly owned subsidiary of Vitasoy International Holding Limited. It has been providing friendly, convenient and efficient tuck shop service to Hong Kong schools since being established in 1991. Vitaland’s more than 200 Hong Kong schools’ tuck shops are now serving more than 100,000 students and teachers.
Traditional, family-operated school tuck shop operations have been well-described as lacking consistent standards of service. Vitaland is the first organization to transform tuck shop operations to systematic chainstores with professional management. Vitaland has established many systems and procedures to manage tuck shops effectively, systems and procedures for; staff training, product sourcing, product development, product variety, food hygiene, shop equipment and business management.
3.1 Forming The Working Groups
The cross-functional team is formed for this project to study the consuming behaviour of students. It is called ‘Special Team of Purchasing Pattern of Students’ (STOPPOS). It will take approximately 3 months to complete the task.
There are 11 members in STOPPOS, they are as follows:
The Chairman: Ms. Cecelia Cheung - Marketing Manager
The Researchers: Mr. Peter Chan – Senior Marketing Officer
Ms. Stella Wong – Marketing Officer
Ms. Vivian Cheng – Business Development Officer
Mr. Michael Cheung – Purchasing Officer
The Supervisor of the Data Processors: Mr. Stephen Wong – Marketing Officer
The Data Processors: Ms. Mary Lee – Administration Officer
Ms. Brandy Poon – Administration Clerk
Ms. Rachel Cheng – Personnel Clerk
Ms. Angel Lee – Purchasing Clerk
Mr. Wing Lui – Operations Clerk
3.2 Preparation Works Before Doing The Marketing Research
The first meeting held on 13 October 2002. STOPPOS discussed the budget of this project, the design of questionnaire, the co-ordination, the way to conduct the research, the way to analysis the research and the way to evaluate the result.
The meeting was aimed to give the general concept/ ideas to the staff members about the limitations, workflow and their responsibilities.
4.1. Defining The Problems/ Research Objective
STOPPOS defines the needs for doing research. To maintain the leading position in the market and diversify the business in the market, therefore, it is necessary to understand our customers’ buying pattern and behaviour. It would be useful for the company to carry out the related marketing strategies.
STOPPOS also agrees on the setting of research objective. It should be the descriptive research on the attitudes of consumers (students) on the buying behaviours.
5.1 Developing The Research Plan
STOPPOS has developed the research plan, which was approved by the chairman. It has determined the specific information needs, the gathering of data and research approach.
In the project, it is important to find out the relationship between the consuming behaviour and the factors of school types, school sizes, demographics, sex, and ages…. It would help us to have better knowledge on that.
More important is to help us to better allocate of resources, i.e., promotion methods and product types and pricing. In addition, it would help us to set the budget and target sales more precisely if the management take the factor of consuming behaviour of students into account.
5.2 Gathering of Data
STOPPOS has obtained the secondary data sources from the company’s internal database. The sales figures, our tuckshops in the school outlets, some of the competitors’ information would help us to make comparison and analysis. Although this information is useful, some of the needed data is still missing.
Therefore, STOPPOS needs to collect information for the said purpose. STOPPOS also concerns the data’s relevant, accurate, current and unbiased. The guideline of how to gather data is issued for the members of STOPPOS. It hopes that the guideline will help them to focus on the specific areas but avoiding from any bias in designing the questionnaire, sampling plan and process the primary data.
6.1 Sampling Plan
There are more than 200 tuckhops in the school outlets in Hong Kong and serving for over 100,000 students. It is impossible for us to do the research to all customers. Therefore, it is necessary for us to develop the sampling plan to decide the sampling unit, the sample size and the sampling procedure.
The sampling unit would be students. The target sampling size would be 15,000 students. The factors that would consider in sampling procedure are as follows:
- Location of schools, i.e., Hong Kong Island, Kowloon and New territories. STOPPOS would also chose the places for rich people located (e.g. Middle Level), high population density (e.g. Mongkok), low population density (e.g. Sai Kung)
- The sex of the students should be equally divided, half for male and half for female.
- The age should be from 11 years old to 18 years old (from Primary 1 to Form Seven)
- School Types, i.e., Band 1 school, Band 2 school and Band 3 school
6.2 Research Instruments
The research instruments than would be chosen is Questionnaire. It has been carefully designed before carry out.
6.3 Research Approaches
The Experimental research approach would be chosen for this project. It can gather the primary data by matched groups of subjects and checking for differences in group responses. The questionnaire would be used in this project.
STOPPOS has sent out 40,000 questionnaires and only returned for 16,213 questionnaires. The collection time and follow-up jobs take for 33 working days. After STOPPOS has received the questionnaires, there are 1,325 questionnaires invalid. It is mainly because the questionnaires were not yet completed.
7.1 Implement The Research Plan
The processing time for those received data is 58 working days. The findings are as follows:
- Students in Hong Kong Island would spend 3.25% more than Kowloon and New Territories. Student in Kowloon would spend 1.21% more than New Territories.
- Average spending of Primary schools’ students in Tuckshop is $4.7 per day. Average spending of Secondary schools’ students in Tuckshop is 9.3 per day (including the lunch)
- Average spending of female is more than male. Average spending of female of Primary schools’ students is $5.3 per day. Average spending of male of Primary schools’ students is $3.8 per day. Average spending of female of Secondary schools’ students is $11.2 per day. Average spending of male of Secondary schools’ students is $8.6.
- Students studied in Band 3 schools would spend 3.1% more than Band 2 and band 1 school. Students studied in Band 2 schools would spend 1.94% than Band 1 schools.
- The location of school in the place like Middle Level would spend 2.53% more than the high population density place and low population density place.
8.1 Recommendations
Base on the findings, the price-setting can according to the demographic factor. STOPPOS also suggests introducing more food products to the high consuming group. The band 3 school and female in Secondary school would be the target group. Moreover, STOPPOS suggests forming a focus group to develop the new products. Some of the students will be invited in this focus group to understand more about their taste.
STOPPOS has reviewed for this project. It found that the research can be useful to understand on the consuming behaviour of the students. However, it may not be detailed enough. STOPPOS suggests joining the external consultation firm to conduct the marketing research next time.
