The optimization of the production process is an overarching goal of all commercial enterprises. More specifically, the primary aspects of it usually comprise the reduction of unnecessary expenses in favor of prioritized points. In the case of the energy drink producer in question (hereafter referred to as EDP), the envisaged policy suggests abandoning the can container format. Instead, the production of the EDP is to be distributed exclusively in bottles. This idea is introduced by the company’s sales manager who believes that the second format is more convenient and, therefore, preferred by the customers. On the other hand, the marketing vice-president of the EDP remains unconvinced by this argument. Naturally, the company’s management wants to have its major decisions based on serious evidence. Such data is usually obtained through the in-depth analysis of the market and the consumers’ purchasing behavior. The aim of this paper is to outline the optimal data collection and research procedures that would help the EDP make an evidence-based decision.
In the current complex environment, marketing research has attained an unprecedented degree of importance. Society has become globalized and advanced in terms of technology, leading to the further distribution of information. From one perspective, such tendencies contribute to the complexity of the external environment in which companies operate. At the same time, they create new avenues of research and analysis that allow marketers to make more precise, informed decisions. For example, Arrigo et al. (2021) argue that the current rise of social media forms a favorable environment for marketing research. Multitudes of existing and potential consumers maintain an online presence, which enables the assessment of their preferences and opinions in regards to certain industries, products, and decisions. Moreover, Arrigo et al. (2021) view social media data as significant enough to be incorporate in the statistical analysis performed by marketers. This information is invaluable for evidence-based policies that help companies enhance their efficiency while remaining in line with the consumers’ views.
In the case of the EDP, a mixed-method approach to marketing research is recommended. The first stage will comprise a series of both online and offline surveys of the target audience. Presumably, the core of the EDP’s consumers comprises young adults who need to remain active and full of energy for specific tasks. For example, this list includes university students during crucial exam phases, amateur athletes, and people with active hobbies. Therefore, the online segment of the survey can be distributed in social media networks popular with these categories, such as Instagram. Offline surveys may be conducted by the EDP’s representatives in selected venues owned by the company’s major retail partners. First of all, the purpose of the survey is to pose a simple format dichotomy, asking consumer whether they prefer bottled or canned drinks. Second, the responses are to be elaborated in terms of the factors that contribute to this or that choice. As a result, the EDP will obtain valuable qualitative data that will provide insight into consumers’ preferences, as long as it is interpreted correctly.
Nevertheless, it would be unwise to rely on people’s responses exclusively. When faced with an unexpected question, consumers may find it difficult to express their thoughts. Furthermore, a considerable part of the consumer decision-making process may occur on the subconscious level. These ideas are primarily related to the actual ration between bottled and canned formats of energy drinks consumed. Therefore, the qualitative findings are to be supported by specific quantitative results. In this regard, it is valuable to address the EDP’s major retail partners for joint research. These partners can provide their sales records over the past year, showing the total number of drinks sold with the further categorization into bottles and cans. The marketing department of the EPD will be able to analyze these results across a twelve-month period, which, in turn, will highlight seasonal correlations, if any. As a result, the company will obtain precise quantitative data that, however, may lack a contextual dimension. When combined with the qualitative outcomes in the course of the mixed-method research, these findings will contribute to the overall accuracy of the analysis.
At the same time, the levels of data measurement are equally important in the research process. Considering the double-faceted, mixed-method approach proposed in the discussed context, there will be two levels. First, for the qualitative part, the final results will show personal preferences (for example, “I like my drinks in a can” or “I buy bottles more often because they can be closed and it is convenient”). Thus, the results correspond with the ordinal level of data measurement, because it can be ranked: can only – mostly can – fifty-fifty – mostly bottle – bottle only. However, for the quantitative segment of the research, sales records of the retail partners will show an exact ratio between the formats. For example, the findings may show that canned drinks amount to 0.32 of the total quantity of the product sold. Therefore, the quantitative analysis will rely on the ratio level of data measurement. Ultimately, the envisage format implies a complex, mixed-method approach to market analysis. However, the complexity of the research will be balanced by its accuracy, enabling the introduction of informed policies that will benefit the EDP.
Reference
Arrigo, E., Liberati, C., & Mariani, P. (2021). Social media data and users’ preferences: A statistical analysis to support marketing communication. Big Data Research, 24. Web.