Problem Definition
Development of an Approach to the Problem
Research Design
Data Collection
Data preparation and Analysis
Reprort Presentation
Steps in Marketing Research
Problem Definition: For us, the problem formulation required us to understand how the
apparel industry, especially in an organized retail setting. We interacted with and visited many
outlets such as Westside, Big Bazzar, Shoppers’ stop, etc. to get a grip of the current business
problem facing the apparel industry. Our discussions with some of the concerned authorities led to
the observation that sales after dropping, have yet to reach a previous high. Steady progress has
been achieved but it’s not enough. In such situations, discounts have been instrumental in increasing
the sales. Different types of discounts offered different incentives to customers and the right
discount at the right time targeted at the right segment of customers, lead to an increase in sales.
Thus, attracting and retaining the right segment of customers becomes crucial. Understanding the
behaviour/ psyche of such consumers thus becomes vital. Relevant data needs to be extracted from
them in order to understand how they think. Accordingly, the right set of discount strategies and
sales promotions can be targeted at them to get maximum returns. This generic idea encompasses
not just the discount strategies employed, but also their communication, when they are employed
(seasonality) and other such affecting variables. This leads us to the broad management problem
definition of
1. “What should be done to increase the sales under increased competition and rising raw
material cost?”
2. “How should that be done?”
Development of an approach to the problem: We first decided to list down all the
possible variables that help us hit the bulls’ eye with our problem statement. From the management
problem, we had to refine down further to the marketing problem. Our discussions emanated a list
of variables, which on further refinement, were brought down to a select few. Some of them being
brand, discount offered, quality, competitor offerings, season, type of store, original price, etc. Based
on our discussions with industry experts and analysis of secondary data, we identified certain
discerning information that could help us formulate the hypotheses. This meant dividing the broader
problem into components before moving any further. Thus, the management problem was further
sub divided into such component questions as “What are the kinds of sales promotion that attract
the consumers effectively and efficiently?” “What modes of communication should be used to
inform potential customers about discounts?” “What is the effect of timing and longevity of sales
promotion on revenue?” “What is the effect on sale of non-discounted items during when only few
items/brands are priced at discount?” These and other such components would help us move in the
direction of developing our hypothesis. On developing our hypothesis, corresponding questions that
help us answer test the hypothesis on a given sample were formulated.
Research Design: A research design is a framework or blueprint for conducting the marketing
research project. It details the procedures necessary for obtaining the required information, and its
purpose is to design a study that will test the hypotheses of interest, determine possible answers to
the research questions, and provide the information needed for decision making. Conducting
exploratory research, precisely defining the variables, designing appropriate scales to measure them
are also a part of the research design. As a result, research design starts off where the previous step
left off. Conducting exploratory research involved determining that questionnaires are the best form
of data collection method. Our guesstimates were based on the secondary data that we had
obtained from our preliminary discussions with industry experts. A sample of 150 was considered
convenient to test the hypotheses. This sample population came from the three demographics of
people w.r.t income, Sec A, B and C. It was a city based population exposed to discount offerings. We
also decided on which specific scales to employ for these questions in order to extract the right and
relevant data.