Case 1 Essay Example
Market Research Process 5
Marketing Research Process
Marketing Research Process
Portland Drake Beverages (PDB) recently acquired a new product, crescent pure, and now seeks to establish a positioning strategy for the product. The management team disagrees on the suitable strategy with supporting its launch as an energy drink while others suggesting association with the sport-drink positioning. Management seeks to identify the most suitable positioning strategy that promises to maximize revenue generated from the sale of crescent. The PDB’s director of market research, Matt Levor, settled on time saving research methods due to limited time available. Levor had the option of conducting a primary research or a secondary research on the positioning of products. Primary research involves collection of raw data directly from the field and making analysis based on this data. Secondary research on the other hand relies entirely on previous research studies, their findings, and conclusions. Primary research requires a substantial amount of time and resources to collect data usually on an area not researched before. Secondary research solves the problem of insufficient funds and time by providing a convenient option to conduct research (Birn & Forsyth, 2002 p.52). In the current research, Levor chose to conduct a secondary research on the energy-drink and sports-drink markets. He used findings from previous research to obtain information about crescent’s positioning strategy. The research therefore relied on information provided by various third-party sources and selecting the relevant deductions to the study. Levor used information from a study conducted by a beverage trade association, academic reports, three consumer surveys undertaken by a private research company, and media coverage on the industry. These previous studies set the stage for investigating the market information needed for the current research.
The research uses secondary data sources to make gather market information useful in determining the positioning strategy for crescent. The sources enabled Levor gather a wide range of information concerning the research area. They provided findings, conclusions, and recommendations for adopting various strategies. They conducted an in-depth study on the industry through providing statistics on previous position, current position, and projected position of the industry. This information is useful in understanding the structure of the industry, the major players, potential for expansion, and threats for its growth. Understanding the industry is the first step of PDB towards creating successful marketing strategies for its products. The wide range of information ensures that the researcher does not miss crucial information that could guide in addressing the research issues. Conducting primary research would not have offered sufficient information for the study (Birn & Forsyth, 2002 p.31). This is because it would have concentrated on a certain research area to ensure objectivity. Concentrating on one area would have locked out the potential of gathering additional and useful information from the perspectives and opinions of other researchers. Having the opportunity to access the thoughts and conclusions of other researchers on the area gave Levor the ability to identify the most appropriate strategies. The strategies identified therefore relied on facts rather than assumptions. The studies used as reference focused on a similar research area, as the current research hence information gathered was very relevant to the research. This eliminates the likelihood of using assumptions to fill in the gaps left unaddressed by the research since it offers the exact information needed. However, the research information gathered faces the risk of inaccuracy in case the studies used as reference made mistakes when conducting their research. This results in a chain reaction where inaccuracy in the study materials spills over to the secondary research conclusions.
Aims of the research were to establish the most suitable positioning strategy through determining the market sizes for the energy and sports drinks, consumer preferences, and major competitors of the crescent beverage. The strategy adopted has the potential to influence consumers’ opinion and attitude towards the product before seeing it. From the previous research findings, Levor identified valuable information concerning the industry. It offered information on the market size, customer data, competition, threats, and opportunities. Demographics of the consumers who use the energy and sports drinks help in identifying the target market of the positioning strategy (Birn & Forsyth, 2002 p.54). The information also includes specific statistics about the market composition and performance as well as the future expectations of the industry. This is enough information for the management to identify the most suitable strategy by identifying the potential market size of both options and the growth potential. Information on competitors, threats, and opportunities is enough for the management to assess its competitive position in case they adopt either strategy. A strong competitive position is desirable for any organization since it indicates its survival in relation to industry changes. The study information aligns with primary data collected from crescent’s distributors about consumption habits of consumers. It has also contributed to emergence of a different perspective of adopting a broader positioning strategy of an organic beverage proving the research is serving its purpose.
Birn R & Forsyth P 2002, Market research, United Kingdom: Capstone Publication.
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