Marketing Research

BAY MADISON INC.

CASE ANALYSIS

December 30, 2009

SUBMITTED BY:
Group 1 (Section B)
Abhishek Kumar (9061)
Dilip T P (9074)
Lohith N N (9082)
Pratik Choksi (9093)
Rohit N (9100)
Sunag (9114)
Table of Contents
Background of the case ..................................................................................................................... 3
Proposal 1: National Research Associates Company........................................................................... 5
About the Firm .............................................................................................................................. 5
Sample Size & Methodology: ......................................................................................................... 5
Analysis: ........................................................................................................................................ 5
Cost and time for the research: ..................................................................................................... 6
Approach: ...................................................................................................................................... 6
Verdict:.......................................................................................................................................... 6
Proposal 2: Progressive Research Group ............................................................................................ 7
About the firm ............................................................................................................................... 7
Sample size and Methodology ....................................................................................................... 7
Problem according to the company ............................................................................................... 7
Proposal ........................................................................................................................................ 7
Approach....................................................................................................................................... 7
Verdict........................................................................................................................................... 7
National Research Associates vs. Progressive Research Group ........................................................... 8
Proposal 3: H J Clifford Research........................................................................................................ 9
Verdict........................................................................................................................................... 9
Proposal 4: Consumer panel ............................................................................................................ 10
Verdict......................................................................................................................................... 10
Conclusion....................................................................................................................................... 11

2
Background of the case

Ellis Company launched a product, Rill, a powdered cleanser in 1923. Rill was initially used as
a heavy duty cleansing agent for removing dirt and stains from porcelain, metal and ceramic
tile surfaces. This product had a unique bleaching property which eliminated the necessity
for scrubbing and it did not contain any abrasive material. In 1936, the company’s research
department developed and added an ingredient which imparted a light and fluffy texture to
textile products washed in a mild solution of Rill. Hence the company promoted Rill both as
a powdered cleanser and laundry wash water additive. 50% of the advertisements featured
Rill as powdered cleanser, 30% as laundry additive and 20% as dual purpose product. Rill
was distributed in three sizes as a concentrated solution.

Rill sold well in its initial years but from 1970 the unit sales had declined due to competition.
But the dollar volume over this period had remained constant. One of the problems they
were facing was whether to promote Rill as a cleanser, laundry additive or a dual purpose
product. They had the quantitative information like unit sales, outlets, margins etc and
needed the qualitative information like consumer attitudes toward the product, usage
patterns and opinions on different product characteristics in order to formulate the
marketing and advertising strategies.

Ellis Company decided to give the task of conducting a thorough study on Rill to Bay
Madison Inc., a large advertising agency. Mr. George Roberts, who was the research director
at Bay Madison Inc, had drawn up a research proposal and forwarded it to six marketing
research firms for detailed information regarding the following:

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 the
g) Projects handled over the preceding two years

3
The research proposal consisted of the marketing problems, objective of proposed research,
broad suggestions regarding research methodology and a proposed questionnaire.

For this purpose Bay Madison called in for research proposals from various firms. Out of all,
three research firms were short-listed and were asked to send in their proposals. The firms
short-listed are as follows:

1. National Research Associates Company

2. Progressive Research Group
3. H J Clifford Research

4
Proposal 1: National Research Associates Company

About the Firm

National Research Associates is one of the reputed and recognized leaders in the field of
Marketing Research in US.

It has conducted almost 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 proposed 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.

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 “make up a story” 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.

5
 4. The Semantic Differential Test:

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

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. Colour 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

6
Proposal 2: Progressive Research Group

About 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

7
National Research Associates vs. Progressive Research Group

8
Proposal 3: H J Clifford Research

One of the most reputed firms. Most marketing executives regard this firm as the
outstanding research firm in the country.

Roberts suspects if he has given enough data to expect a detailed plan from the research
firms. To complement his feeling, HJ Clifford being very professional, does not give a
detailed plan, instead says it needs more data, also that their way of working involves
continuous cooperation between the company, agency and the research firm.

They need to meet the company and get the exact details of what is required from the
research, what is feasible and what is not feasible with the company in perspective as their
research could be strategy oriented.

Verdict
Since the purpose of this research involves strategic change of the company’s product
profile, HJ Clifford 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. 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 remove unwanted parts included in the
research plan sent by them.

9
Proposal 4: 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 is representative of the population.
Mr. Jacks initiative
Analysis of consumer panel data
Most economical alternative - $17000
• 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

10
Conclusion

CRITERION SELECTED FIRM

1. Answers to all research
questions
National Research Associates
2. Strict time constraint
1. If time can be relaxed
H J Clifford Research
2. Cost is affordable

11