Marketing Research Project

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Tackling the Reasons behind Crystal Sales Volume Decline
Marketing Research Project Report

Presented to: Dr. Nehal el Naggar

Table of Contents
Market Overview3
Problem Definition3
Management problem3
Steps taken to identify the Market Research Problem4
Secondary data analysis4
Expert depth interviews6
Market Research Problem Definition8
Research Objectives8
Theoretical Framework (Defining the Dependent & Independent Variables)9
Research Design9
Research Methodology10
Data Collection Sources & Tools10
Population & Sampling10
Data Analysis11
Brand/SKU usage:11
Drivers affecting the VG purchases:11
Purchase Habits after the revolution12
Brands’ Availability in the market & buyers’ reactions12
Recall & Evaluation of VG brands’ Advertisements13
The Crystal 0.5 Kg introduction13
Appendix I: Expert IDI – discussion guide line15
Appendix II: Quantitative research questionnaire17

Market Overview
Arma Food Industries has launched a new product into the Egyptian market, Crystal Ghee, taken from the Oil mother brand Crystal. Tampering on the already well established brand image and presence of the Crystal brand name, achieved within the oils category, Arma wished to take this brand name further and launched a new ghee brand accordingly. In June 2010, Arma launched two variants to the ghee Crystal brand, one yellow and the other white. Introduction includes five sizes for each type, 1, 2, 3, 5, 11KG. In 9 months, Crystal achieved a total sales volume of 8.3%, putting huge pressures on the key players (Rawaby at 33% & Ganna at 23%) of the market. After this successful introduction, and although Arma launched an aggressive advertising campaign in February 2011, Crystal VG started to face decline in sales volume. Problem Definition

Management problem
After a successful introduction of “Crystal” in the Egyptian ghee market in June 2010 with two variants, yellow & white. A sudden decrease in sales volume has occurred starting from March 2011. The average monthly sales volume decline was 11%

Management Questions:
* If Arma would like to allocate investment to gain sales, where should it be allocated? * What are the most effective ways to accelerate sales again? To identify the Marketing research problem definition, several steps were taken Steps taken to identify the Market Research Problem

Secondary data analysis
* Reach a better definition for the problem in hand
* Develop an approach to the problem
* Retail Audit Tracking research for the VG market from June 2010 till May 2011, including volume shares, & weighted distributions. * Usage & Attitude study (Qualitative & Quantitative) held in July 2010 * Brand & AD evaluation study held in March 2011

* Brand health tracking research held in March 2011
* Consumer Confidence tracking research from March 2011 till May 2011 Findings:
* Starting from Jan’11, It was noticed that the Key Size (2 KG) is losing sales volume for 0.5KG, 1KG, & +10KG (which is sold mainly as loose ghee)

* Crystal 1 KG started to gain sales volume share in favor of Crystal 2KG

* Almost no switching between different Ghee types since Dec’10

* All the premium tier brands are facing decline in sales in return for the mid-lower tier Brands

* Distribution level of Crystal VG is 50% lower than that of its key competitors (Rawaby & Ganna)

* Due to decrease in income & Pressures on consumers, They are more aware of managing/decreasing their expenditures, Source: Market Pulse consumer confidence research

* They have started to decide whether to buy cheaper brands, smaller packs, or to decrease consumption Source: Market Pulse consumer confidence research

Expert depth interviews
* Explore The impact on sales before than after the...
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