LAHORE SCHOOL OF ECONOMICS
Group ID: 8
Names of Group members
Executive Summary 4
Key Findings from Secondary Research 5
Problem Statement 6
Research Objectives 6
Research Method 6
Data collection technique 6
Recruiting procedure for respondents 7
Findings from the focus group 7
Indian bias 8
Ease of handling 8
Willingness to spread positive word of mouth 10
Value for money 10 ...view middle of the document...
There was slight difference in the age bracket as the students were mostly between 20 to 25 years, and the peons between 25 to 35 years. The students were selected from section A, B and C of the MBA II batch of LSE.
The analysis of the focus groups helped us explain what difference prevails in the consumer preferences and taste in the confectionary item, specifically regarding ‘Chewing gums’. We also came to know what makes the consumers buy the chewing gum, and how they could increase their frequency of purchase. The competitor’s analysis was also constructed based on the information collected from the respondents in focus groups and through the in-depth interviews from retailer, distributor, and GM of Universal Enterprise.
The analysis explains why ‘Chingles’ failed in Pakistan’s market because of the factors like competition, price, willingness to buy, packaging etc. These factors were found from the focus groups, and the interviews revealed that this product was not finding place on the retailers’ shelves due to price, unconventional packaging etc.
The information collected from the qualitative research was further validated when the quantitative research process was conducted. In this part, we got 50 questionnaires filled from the consumers regarding our product and the standout point form this research was that almost 95% were unaware of the product and had never heard or seen the product in the market which majorly contributed to its failure.
Key Findings from Secondary Research
From the secondary research we gathered insights of failure of new product launch. According to Saif Dewan (2009) domestic brands dominate the market accounting for more than 85% of total value sales of the industry. Consumers have developed an association with the existing products and it is a challenging job to change their perspectives about the existing items and influence them to switch to newer products. This task requires skill and specialization in the background research related to the launch of the product.
It is essential for any product's success that the advertising intended should reach to the target audience. In order to generate a response from the consumers, the consumers must go through the advertisement few times (Usamah Iyyaz Billah, 2011).
Joan Schneider and Julie Hall (2011) identified that the reason of failure of the product is majorly that a product falls short of the claims made. In this regard, the product does not come up to the desired expectations of the customer that were created and creates distrust for the company from consumers. This leads to the consumer not making any purchase and even does not intend to make any purchase by the company in future due to their false claims.
The reason for conducting this research is as the product ‘Chingles’ was launched in the market of Pakistan (basically an Indian originated product), it failed. The consumers are unaware of this brand name and even the product...