TRIAAD Research Group is a full-service marketing research company who has recently acquired a new client, Exotic Smokes Cigarette Company. This company has asked for a proposal conducting an in-depth study of consumer behavior to analyze the market for their new flavored cigarettes, using fruit and candy flavors. The marketing strategy must attract 18 to 25-year-old customers. Exotic Smokes Cigarette Company has allotted a $25 million advertising budget for the product. The purpose of this proposal is to identify successful marketing strategies for flavored cigarette. Schedule
The research group is recommending 3-6 months to gather and interpret information concerning the consumer-product relationship through both interpretive and traditional approaches through the use of brainstorming, focus groups, surveys, and secondary research. These areas should be sourced for information concerning affect and cognition, behavior, and environments involved in both the purchase and consumption of the product. With this information, the research group will be able to better identify with the target market and create effective advertising and pricing for the product launch. The team is recommending an additional 3 months to create suggestive advertising campaigns and pricing point recommendations. The project should be completed within 9 months total. Methodologies
It is recommended that focus groups be conducted to gather consumer behavior among people’s thinking, feelings, and actions with regard to flavored cigarettes. A total of 50 focus groups will be conducted at a rate of $2,500 per session. Each session should include 50 participants. Focus groups will be conducted within various regions of the U.S. Recruitment efforts will identify current smokers of flavored cigarettes. Participants will also be compensated $50 for their time. Surveys should also be used to collect specific information about the target market. Surveys may be administered by e-mail, mail, or phone, with varying fees. The targeted incident rate is 10 percent, with 500 surveys being completed. Cost per survey type is indicated as follows: •Phone. Phone surveys can cost anywhere from $5,000-$15,000. They typically cost an average of $40 per interview (or person surveyed). •However, this per-interview price can increase or decrease according to the success of responses. The fewer the responses, the higher the price. For example, if only 50 percent of the list responds, you'll pay a little more than $40 per interview. •Mail. Surveys via snail mail will run close to the price of phone interviews, usually about $5,000 to $7,000 for 200 responses. •E-mail. E-mail surveys are becoming more popular because their costs are lower--about $3,000-$5,000 (Lee, 2002, para. 34). The recommended survey may be found in Appendix A.
Secondary research may also be utilized to identify who makes up the target market, what their needs are, and potential demand for the product. Information may be pulled from organizations such as the American Smoker’s Registry and published reports from credible sources. Other sources include non-profit and government agencies. Sampling Procedure
Sample data for focus group and survey participants may be acquired from cigarette associations and customer lists. Radio advertisements may also be used on popular stations requesting potential participants call a 1-800 line to sign up for participation. The estimated cost for acquiring this information is $15,000. Plan Deliverables
The deliverables for the project include the collection of information that accurately identifies with the target market. Adhering to schedule is key. Final deliverables include a proposed product launch that includes advertising, launch dates, and pricing suggestions. Ethical Considerations
Marketers are responsible for the consequences of their actions. As a member of the American Marketing Association, every effort...