STUDY UNITS COVERED : STUDY UNITS 1-8 DUE DATE : 3:00 p.m. 21 AUGUST 2012 TOTAL MARKS : 100 MATERIAL SUPPLIED : DONATOS

Transcription

1 Page 1 of 6 ASSIGNMENT 2ND SEMESTER : BASIC MARKETING RESEARCH 2 () STUDY UNITS COVERED : STUDY UNITS 1-8 DUE DATE : 3:00 p.m. 21 AUGUST 2012 TOTAL MARKS : 100 MATERIAL SUPPLIED : DONATOS INSTRUCTIONS TO CANDIDATES FOR COMPLETING AND SUBMITTING ASSIGNMENTS The complete Instructions to Students for Completing and Submitting Assignments must be collected from any IMM GSM office, the relevant Student Support Centre or can be downloaded from the IMM GSM website. It is essential that the complete instructions be studied prior to commencing your assignment. The following points highlight only a few important notes. 1. You are required to submit ONE assignment per subject. 2. The assignment will contribute 20% towards the final examination mark, and the other 80% will be contributed by the examination, however, the examination papers will count out of 100%. 3. Although your assignment will contribute towards your final examination mark, you do not have to earn credits for admission to the examinations; you are automatically accepted on registering for the exam. 4. Number all the pages of your assignment (e.g. page 1 of 4) and write your name and surname, student number and subject at the top of each page. 5. The IMM GSM requires assignments to be presented in a typed format, on plain A4 paper. Unless otherwise specified, this assignment must be completed within a limit of 1500 words, excluding the bibliography. Students who exceed the word limit may find that only part of the submitted assignment will be marked. 6. A separate assignment cover, which is provided by the IMM GSM, must be attached to the front of each assignment. 7. Retain a copy of each assignment before submitting, in case the original does not reach the IMM GSM. 8. The assignment due date refers to the day up to which assignments will be accepted for marking purposes. The deadline is 3:00 p.m. on 21 August Late assignments will be accepted, but 25 marks will be deducted from the maximum mark, if received after 3:00 p.m. on 21 August 2012 and up to 5:00 p.m. the following day, after which no assignments will be accepted. 9. If you fail to follow these instructions carefully, the IMM Graduate School of Marketing cannot accept responsibility for the return of the assignment. It may even result in your assignment not being marked. Results will be available on the IMM GSM website, on Friday, 5 October 2012.

2 Page 2 of 6 Introduction Read the case study Donatos. Answer all the questions and apply a critical reflective approach in answering the questions. Sources: Learner Guide 2012; Prescribed textbook: Fox, W. and Bayat, M.S., A Guide to Managing Research. 1 st ed. Cape Town: Juta. QUESTION 1 [4] Give the definition: Marketing problem. Give the definition: Research problem. QUESTION 2 [12] Applying the definitions from Question 1 and with reference to the case study: State the marketing problem for the case study. State the research problem for the case study. Discuss: Why is the understanding of the difference between the two concepts (marketing problem and research problem) important in marketing research? QUESTION 3 [12] Give four (4) possible research questions based on the research problem you have developed (in Question 2) for the case study. QUESTION 4 [10] Give the definition of unit of analysis. What is the unit of analysis for the case study research? Motivate why you choose that as the unit of analysis. QUESTION 5 [20] Population and sampling considerations: Based on the case study, describe the population. Give the definition of a sampling frame. Identify and discuss the sampling approaches taken in the case study (there are 3 samples) for example are they random samples, why do you say that? What kind of sampling error might have occurred in the sampling approach in the case study? Tip: Refer back to your answer under unit of analysis.

3 Page 3 of 6 QUESTION 7 [18] Types of data: Give a definition of primary data. Give a definition of secondary data. Using the case study give one (1) example each of the following data types used in the case study: Primary data Secondary data Discuss: Why are primary data in research more valuable than secondary data? Data collection: Name two (2) methods used to collect data in the case study. QUESTION 7 [14] Literature review: Give two (2) places where you would find recent literature sources for literature review purposes. As part of the preparation to conduct a systematic literature review: Break down the research problem into at least two (2) key words (concepts). Find at least two (2) synonyms or related terms for each of the key words (concepts) given in the previous point. Give four (4) literature search terms suitable for searching online for literature applicable to the marketing and research problems given for the case study in Question 2. Using the IMM GSM Referencing Guide, indicate the errors in the following referencing examples In text references: o Porter later refined his ideas on the essence of competitive strategy as follows: Competitive strategy is about being different. It is choosing a different set of activities to deliver a unique mix of value. o In November 2011 Audi had 104 social media and Web mentions ( Reference list: o Collier, J.E. and Bienstock, C.C. (2006). Measuring service quality in e- retailing, Journal of Service Research, 8 (3): o Audi Facebook, 2012, Audi South Africa, [online] < PRESENTATION [10] ASSIGNMENT TOTAL: 100

4 Page 4 of 6 DONATOS: FINDING THE NEW PIZZA The pizza segment of the fast-food industry is very aggressive. As people's tastes change and new diets become the rage, restaurant chains must decide if and how to respond. This case focuses on the research behind the introduction of Donato's lowcarbohydrate pizza, and how the company collapsed its normal product-development research process to take advantage of a current trend. Some strategic windows remain open for an extended period of time; other, don't. One of those slim windows faced Tom Krouse, chief concept officer with Donato's, an independent premium pizza restaurant chain, headquartered in Columbus (Ohio). Krouse, who is reponsible for new product development, had to answer a question facing many restaurants: Is the low-carb diet a flash fad or a trend and should we respond? "Restaurants are influenced my many factors: product, message, weather, reputation, and competition, to name a few. But mostly we are influenced by changing eating habits. As a result, we monitor a variety of sources. One of these is syndicated research obtained from The Yankelovich Monitor and NPD Eating Trends. Another is comments from customers received via our web site. We also hold monthly WASSUP Meetings, shared Krouse, "where each employee brings knowledge of an element from popular culture and explains its affect on Donatos. Donatos, recently divested by fastfood giant McDonald's, had, for four years, access to tremendous amounts of research on the eating habits of Americans. In late July, according to the 2003 HealthFocus Trend Report, 26% of eaters were "carb aware." "This meant that they were incorporating low-carb habits into their diets. We had a multitude of evidence, over several months, that the interest in low-carb eating plans was increasing," concluded Krouse. The time was July Krouse, who himself was following the Atkins diet, was noticing that at company meetings, where pizza is a staple refreshment, "little piles of crust" were being left behind. "At first, we worried that something might be wrong with the crust," shared Krouse. While to some degree food quality is important to any restaurant, Donatos stakes its reputation and its position in the pizza segment on two factors: premium quality and an abundance of toppings Edge to Edge as its slogan goes. Donatos discovered that nothing was wrong with the crust; its employees were avoiding the carbohydrates inherent in the grain-based foundation of every pizza on the market at that time. Convinced the low-carb craze permeating the media was no fad, Donatos started its research-based product development process. The process typically starts with developing the product prototype, followed by employee taste testing, concept screens (where participants, usually in a central location, are shown photographs of food products, and then queried about the item's uniqueness, brand fit, price attractiveness, and the likelihood of purchase if the product were available), and ultimately in-restaurant tests in two or more restaurants within the chain.' Inrestaurant tests also include participants completing a self-administered intercept survey or, for delivery customers, a callback phone survey.

5 Page 5 of 6 In the product prototype phase, Donatos was running into problems. "We were getting in low-carb crusts, and they were awful. 'Awful' is not a good fit with who we are," emphasized Krouse. "Then we had one of those creative recognitions people were willing to eat the toppings without the crust." That changed Donatos direction: could the company market a pizza without crust. "Our director of distribution said, 'That's just goofy enough to take off, chuckled Krouse. With all the emphasis on quality toppings, a no-dough pizza captured our personality." By November 1, Donatos had decided to proceed with the concept of a dough-free pizza. One break-through came in finding the plate. "Simplicity of innovation is sometimes the best innovation," explained Krouse, "especially when your product is made by year olds." Donatos found a make-bake-serve plate. "It's made of paper, but obviously one that can stand intense heat." But in employee taste tests of the first prototypes, something wasn't quite right. Donatos did central location taste tests to test some recipe variations. "We introduced a recipe which includes soy crisps, to give it texture and added protein without the carbs." Statistically, the recipe with soy crisps was only a marginal winner over the recipe without the crisps. And adding the crisps would add significant cost to the new product. "Sometimes you have to step away from the numbers, and look at the central issue of what and who you are. We pride ourselves on being the very best. Adding protein for those customers watching carbohydrates was what we should be doing." Due to the somewhat negative connotation that soy has in the marketplace, Donatos' special ingredient isn't mentioned in its ads or on its Web site. They describe the pizza as having "protein-enriched crumbles." A pizza without dough is built essentially the same as one with dough, with one obvious difference. The doughless pizza is layered on a plate with sauce first, followed by the protein crumbles and then the toppings. For every pizza, Donatos' measures all its topping servings to.01 of a pound to ensure consistency from pizza to pizza and restaurant to restaurant. So from a production standpoint, the doughless pizza would not require new equipment or much new training of store-level employees. So what do you name a doughless pizza? Do you use the "No Carb" or "Low Carb" banner as did many new food entries in the latter months of 2003, or do you choose a name in keeping with your positioning? "We toyed with almost 70 names. Some were clever, like 'NADA pizza,' even `Not-A-Pizza,' and we put several through trademark search. Finally, we put three names to the test using a weekend omnibus phone survey. No Dough was the winner for clarity of message and understanding of the low-carb benefits. All this time Donatos was watching the calendar. By December 22 it was testing the new product in two stores in Columbus. Ads proclaiming the new No Dough pizza were featured in restaurant windows of the test stores. "Starting January 2, we usually see a 25% increase in salad sales," described Krouse. Not surprising, given that for years "losing weight" has been one of Americans' top-three New Year's

6 Page 6 of 6 resolutions. "And we wanted to own the idea of a crust-free pizza; we saw it as a significant marketing advantage." So a new product development process that routinely takes 12 to 14 months took just 6 1/2 months to take advantage of what Donatos saw as a very important strategic window. On January 19, Donato's rolled its No Dough pizza into all its 184 stores. "We like to think of ourselves as a 'smart speed organization,' explained Krouse. "We have the discipline to make fact-based decisions but move quickly." When you order a Donato's pizza, No Dough is one of three crust options, so people wanting to eat low-carb can do so without changing their pizza topping preference. According to Valen Group, a Cincinnati-based marketing research firm, in January 2004 about 28 percent of all Americans-59 million people were watching their intake of carbohydrates. And how has that market segment responded? Donatos is tracking interest and response through a variety of techniques: ongoing telephone tracking studies conducted every quarter using a sample of approximately 600 to 800 adults (done by Wilkerson and Associates, Louisville, Kentucky), as well as customer sent through the Donatos' Web site, and in-restaurant comment cards. "No Dough is meeting our expectations," shared Krouse. "And we are getting incremental business, as well as more frequent visits/calls from regular customers." But one big surprise in this story is the gluten-free market segment, a segment Donatos had not identified. "We are getting s that say, "Thank you! Now I can eat pizza again!" Cooper, D.R. and Schindler, P.S., Business Research Methods. 10 th ed. Irwin: McGraw-Hill.