Tuesday, June 23, 2009

Mining the Field through Market Research

by Ronald Jabal


No action is more important in deciding whether to launch a new product, size up competition, determine market share, measure perception, reinvent image than conducting research.

It precedes action. It antedates decisions.

In the era of cut-throat and more often than not dizzying horizontal and vertical competition where innovation and quality; appropriate price and stylish product packaging; and persuasive corporate imaging and messaging, TSL – or the Tingin sa Langit approach is a cardinal sin to be avoided all the time and at all cost.

Today, “gut feel” has no place. Field research –where first hand information is gathered from primary users or consumers, rules!

It is through field research that companies are able to determine “what’s next”, “what to do” and “how to do it”. Results of field research become the basis of “actionable” jump off points of businesses – allowing them to tailor-fit marketing budgets; identify market opportunities and challenges before plunging into the market.

However, field research is not easy. Hence, instead of simply conducting arm-chair market scrutiny, it has become imperative for businesses – big and small – to get the services of professional market research outfit.

“While it sounds self-serving, businesses are better off by hiring professional outfits to do market research to fully understand the challenges being faced by their respective businesses,” declares Ms. Zon Langrio, Operations Director - TNS Philippines – one of the leading market research outfits in the country.

She underscores the supreme benefits of field research in today’s business operations.

“Going straight to consumers enables the marketers/or the client companies to better understand the consumption habits of their target consumers. They are able to position their products better,” Langrio stresses.

Doing the scientific way

Market research is a scientific way of using the principles of sampling to get a “read of information” from a subset of the population to infer or make hypothesis about the bigger population. It is both time and cost efficient way of getting the “pulse of the people” without needing to get the information from everyone.

“If not done properly, or not done at all, research is the cheapest mistake a company can make when deciding to give a go signal on a new product, a new advertising campaign or strategic brand positioning initiatives” Langrio says.

Langrio, however, discloses that there are limitations to field research. Among others, research is based on perception, “where we usually accept what respondents claim”.

She added undertaking research is time consuming, costly and requites a good sampling technique hence the data gather reflect the attitudes and consumption patterns of the consumers

One of the biggest hurdles that businesses face in conducting research is the budget requirement. “A number of firms are daunted by the amount they need to put in for research without realizing the tremendous benefits they will derive from a professionally-done market research,” Langrio says.

She laments that budget is usually the culprit why businesses either opt not to pursue research or pursue it on its own.

“Market research is very difficult to undertake on their own, given the technical and logistical requirements involved, particularly if the business firm does not have a market research unit which can undertake the research. Not knowing how to use research information as bases for decisions is the usual problem encountered by businesses which strike on its own” Langrio says.

Moreover, identifying the appropriate research method required for the market problem is yet another problem of businesses wanting to save on research budget.

Decisions on which statistical tools, sampling techniques, respondent profile, areas to be covered, design of questionnaire, data processing software, research team (interviewers, supervisors, spot checkers) are also some crucial issues that need to be decided on before undertaking the research – most of which are alien to businesses.

“For the enlightened ones, they commission a market research agency to conduct their fieldwork research. This ensures that their research studies will be undertaken professionally and the data obtained have integrity,” Langrio discloses.

The difference with TNS Philippines

Langrio proudly stresses that TNS Philippines is the leading custom research provider – with close to 30 years of professional market research experience in the country. It is the 2nd largest research company in the world under the Kantar Group. It has a network of about 1000 trained interviewers nationwide and three permanent field offices,( excluding the Metro Manila field office) thereby enabling it to service clients all over the country and undertake research with speed and quality.

“We are proudly ISO-certified, meaning that our operations, processes and procedures confirm to internationally quality standards. We have proprietary business solution software for measuring and tackling consumer attitudes and behaviors. We use in-house interviews directly supervised by our field project coordinators. This ensures tight quality control of field processes and procedures,” Langrio says.

She, however, revealed that conducting market research and servicing clients is never without any hitches. Among the usual problems encountered are managing client expectations, data management and quality, difficult respondents, scheduling and security issues during field work.

“But we at TNS Philippines are able to solve these problems right away given our long and varied experiences in the field. The trust we have gained from clients, the areas we have been, and the people we have interviewed have contributed well to our reputation of being No.1 in the market research in the country,” Langrio says.

Can small businesses afford market research?

Instead of looking at corporate size, funds availability and research budget, every business need to focus on its goal, advises Langrio. “What do they hope to accomplish” –is the question she advises businesses to ask and then look at how they intend to do it – basing their decisions on research.

“When they focus on goals and realize how important research is in accomplishing these goals, budget becomes secondary. Hence, when w are asked if there is a rule of thumb on much budget should be given to research we say there is none” Langrio says.

She added, “Objectives should be very clear and focused. The scope of the research is dependent on where a company is in terms of the life cycle of its products. At introductory stage, one needs only some initial market scan of potential size, likely competitors, marketing structure in terms of pricing promotion and distribution. At growth stage a lot more is needed, like brand health tract, FGDs to get detailed consumer insights; and continuous new product testing for its new products. Typically, brands that struggle (losing shares, losing customers) need to invest more to reverse the trend. Competitive data is also important to be able to compete more intelligently”

Tips tips tips.

Langrio dishes out the following tips:

For small companies: employ a good market research manager who can tailor fit part of your research requirements to your company’s needs and be able to effectively select a good 3rd party agency partner for your strategic info needs. And more importantly, would know how to use/apply results for effective decision making within the company.

For bigger companies: work with best supplier of research service requirement.
“Do not look at actual cost of the project. Look at how much actionable information you get from the study. An experienced full service agency will be able to give you much more information and will help you plan and maximize your budget if you work together,” Langrio recommends, adding conducting research in time with annual