mi project nmp24 group4

8/2/2019 MI Project NMP24 Group4

1/23

Marketing Insights Project

NMP24 (Term 4)

Group 4:

Amit Kumar (24NMP03)

Jagadeeshwar Reddy (24NMP14)

Jaydeep Das (24NMP15)

Srikanth Aitha (24NMP25)

Prof. A P ARORA


2/23

Marketing Problem

There are many discount stores in the market such as Koutons, Cantabiletc that sell their products completely on discount ranging up to 90% attimes.

Does the brand image of these companies suffer because of the heavydiscounts they offer?

Are their products perceived to be of low quality compared to other apparelbrands?

If these kind of companies want to do away with their discounts and selltheir products with list price being greater than or equal to current after-

discount rates

How will their sales be affected?

What effect will it have on their current brand image?


3/23

Research Design

Objective

Experimentation

Data Analysis Qualitative Focus Group Interview

Quantitative

Data

Primary


4/23

Focus Group Discussion

No of participants: 6

Time taken: 25 mins

Analysis:

Discounts through out the year is a way of cheating people.

Discounts through out year means: Apparel not selling

Outdated stock

No quality Instead of pricing it high and providing huge discounts, it

will be better to position themselves as low price apparelprovider


5/23

Focused Group Discussion

Some people visited discount stores only becausethey are providing huge discounts and will notvisit again if discounts are removed.

Some said they will visit only if discount isremoved and customer service and apparelstocking is improved.

Brand Image will deteriorate because of

discounts through out the year

There should be limited no of stores as more andmore stores lead to dilution of brand image.


6/23

Suggestions from Focus Group

Remove the discounts completely

Reposition as a value for money apparel

provider

Improve brand image by advertising

Improve customer service and stocking


7/23

SURVEY RESULTS


8/23

Relationship between purchase frequency

and buying preferencesKruskal-Wallis


9/23

Relationship between purchase frequency

and buying preferencesKruskal-Wallis

Inference: There is no relation between purchase frequency and brand, quality ,

discount and style preferences.


10/23

Shopping preferences Frequency Table

(All values in %)


11/23

Buying preferences for Discounted Vs.

Non-discounted storesWilcoxon Sign Test


12/23

Buying preferences for Discounted Vs.

Non-discounted storesWilcoxon Sign Test

Inference: There is no significant difference between buying preferences for

discounted stores when compared to that of non-discounted stores.


13/23

Perception about discount stores.People who buy from discount stores Vs. People who

dont buy

Mann-Whitney test

Inference: Both the groups have same opinion about the business model and discount

stores having old stock but they differ on discount stores having out dated fashion

stock. People who visited the store dont think that the stock is is out dated fashion..


14/23

Perception about discount stores in

comparison with non-discounted stores.Wilcoxon Signed Rank

Test


15/23

Perception about discount stores in

comparison with non-discounted stores.Wilcoxon Signed Rank

Test

Inference: The non-discounted stores have an edge over discounted stores on

attributes like quality, variety, price, customer service. But consider both similar

on attributes like store location and value for money.


16/23

Experiment

Discounts are removed from the discounted

stores and clothes are sold at their list price

(which is equal to current after discount price)


17/23

Customer Retention Cross tabs

Symmetric Measures

Value Approx. Sig.

Nominal by Nominal Phi .127 .599

Cramer's V .127 .599

Contingency Coefficient .126 .599

N of Valid Cases 64


18/23

Brand Vs Discount


19/23

Age Wise:Brand Vs Discount : Age Wise


20/23

Brand Vs Discount : Gender Wise


21/23

Conclusion

There is no significant difference between buying preferences fordiscounted stores when compared to that of non-discounted stores.

There is no relation between purchase frequency and brand,quality, discount and style preferences.

The non-discounted stores have an edge over discounted stores onattributes like quality, variety, price, customer service, therebyimpacting the brand image of the discounted stores

Both discount and non-discount stores are considered to be similaron attributes like store location and value for money.


22/23

Conclusion

If the discounts are removed:

Only 50% of the customers who visited the stores before are

sure of visiting the store again.

Customers need improvement in terms of quality, variety and

service.

Brand, quality still plays a major role in terms of buying decisions in

discounted apparels. The discounts offered are of less interest to

the customers.

Customers do not believe that the before discount price on theapparels are justified. They believe that they are hiked so as to

adjust the huge discounts.

When offered at the similar prices, customers were more

inclined to buy clothes that are without discount instead of the

heavily discounted apparels


23/23

Thank You

mi project nmp24 group4

Documents