1) Neutrogena is a manufacturer of personal care products for young adults. The company would like to extend its facial cleansers product line. Design (1) a qualitative and (2) a quantitative research design for the company focused on this objective.
Neutrogena’s current state can be addressed using Product Life Cycle theory which is the maturity stage. The company’s plan to extend its facial cleansers product line is due to the reason as their product is approaching towards the decline stage. By extending the product line, it will eventually build sales and move the company in a whole new direction.
Problem Statement:
- How likely are customers to buy facial cleansers that are suitable for acne prone skin?
- Is price their main consideration when deciding on purchase?
Research Objective:
To find out if customers are willing to purchase facial cleansers that are suitable for acne prone skin and whether they are price elastic to the product.
We will be conducting the research using both qualitative and quantitative methods. The research will be taking place in shopping malls and will be targeting 100 respondents, age ranging from 18-25 years old. This is because respondents who are age 18-25 are young adults who may potentially suffer from acne problems. For both methods, the research responses will be recorded using a phone’s voice recorder.
Qualitative Research:
- Do you have acne prone skin?
- What is your current skin type?
- How often do you cleanse your face? How many times a day?
Quantitative Research:
- From scale 1-5, how likely are you to purchase a facial cleanser that is suitable for acne prone skin?
- From scale 1-5, how likely does price affect your decision making on the purchase of facial cleansers?
Refer to Schiffman and Wisenblit al (2015) Ch.16 page 425
2) Which methods of survey would you adopt to investigate the attitudes of a group regarding the shopping experience in Japanese department stores such as Isetan, Sogo and Mitsukoshi?
In this case of investigating the shoppers’ shopping experience in Japanese department stores, we would go for qualitative method instead of quantitative, the reason of this is because it would be hard to truly understand the insights and attitude of people by using quantitative method. Therefore, to understand their perspective, we would use individual interview. The three questions are:
- You would prefer to visit which of the Japanese department stores more often, why?
- What satisfied you the most in Japanese department stores, the product or service, by how?
- Which product would you purchase when you visit the Japanese department stores?
3) Nestle conducted extensive and accurate market research before deciding to put Nespresso in production. Using web sources, press articles, and the corporate website, outline your background research and provide the reason for the success of the famous espresso brand,which featured George Clooney and Matt Damon in a testimonial and has become a veritable case of successful marketing.
Using a celebrity to endorse a brand can be an effective strategy to draw more customers. Nespresso have discussed with their Nespresso Club Members to choose a more suitable celebrity to endorse the Nespresso brand. They chose Georges Clooney and Matt Damon as their brand ambassador because they have charmed fans and coffees consumers as the perfect personification of the understated elegance and authenticity that make Nespresso what it is today.
By using this celebrity endorsement, Nespresso successfully build awareness for their brand and build sustainability credentials for the Nespresso brand all of the world. Not only that, Nespresso got over 50 million total views on one of their YouTube Campaign which partner with George Clooney and Matt Damon ( Think With Google 2014). Moreover, Georges Clooney as their long term ambassador is because he fit to their brand that there’s a value added from the celebrity to the brand. The celebrities they collaborate with are with good image and high popularity which also one of Nespresso competitive advantage for them to stand well in the market for so long.
Written by:
- Ng Jay Vyn 5958970
- Tang Jia Jun 5951550
- Goh Chye Nee 6316876
- Soon Su Shiuan 5968082
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