by Michaela Mora

Posted on March 31, 2010

According to Simmons National Consumer Survey, in 2009 Hispanics’ candy consumption of brands made by some of the large confection makers was about 15%, which can be considered small compared to the candy consumption in the non-Hispanic population (85%). Since 2004, the big confection manufacturers have been trying to increase Hispanics’ candy consumption by buying local brands south of the border or developing new flavors that would attract Hispanics. They have even tried to reach this segment through partnerships with Latino artists (e.g. in 2004, Hershey’s signed a multi-year contract with Latina singer Thalia). However, based on these numbers, it seem that confection makers still have a lot to do to penetrate this market segment.

Nonetheless, Hispanics’ candy consumption wasn’t too bad for some of the confection makers in 2009. Hershey’s, with a large product portfolio, took the top spot with nearly 1 out of 2 candy-eating Hispanics satisfying their sweet tooth with Hershey’s brands from Hershey’s Kisses to Good & Plenty. Mars competed pretty close with a set of brands from M&M’s, Snickers to M-Azing.

Acculturation levels didn’t seem to play a big role in preference for a candy brand, but heritage definitely did. Hershey’s biggest fans were be found among Puerto Ricans, followed by Mexican Americans. Mars brands were also among the favorites for these groups. However, Cubans and other Hispanics groups consumed Hershey’s and Mars confections in less degree. Interestingly enough Godiva chocolates did better among Cubans, which may say something about their taste preferences.

Overall, it has been accepted that Hispanics favor chocolate bars with almonds, intensely flavored products and confectionery with combination of flavors, such as hot and tangy. But these are generalities that miss to take into account differences among Hispanics, particularly when it comes to food. For example, “tangy” and “hot” flavors are likely to be preferred by Mexican Americans, but hardly by Cubans.

How much consumer research confection makers are doing to understand the Hispanic market’s diversity is unknown. This market segment may be considered small compared to the non-Hispanic eating-candy population, and confection makers may think its size doesn’t warrant allocating research resources to it. I would speculate that the segment may be small because not enough resources have been invested to expand it, and precisely because it is small now, the confection makers that invest in understanding this market segment, its diversity, cultural influences, taste preferences and shopping behaviors are likely to win big given the predicted exponential growth of the Hispanic population in the US for the near future.

For more data and insights about Hispanics’ shopping behavior, don’t hesitate to contact us.

by Michaela Mora

Posted on March 30, 2010

In the last few years there has been an explosion of online survey tools, which has lowered the cost of data collection, and made it easier for many internal market research departments on the client side to deploy their own online surveys.

Nowadays, as reduced or non-existent market research budgets are the norm, clients are constantly looking for free survey online tools or very cheap solutions to get the job done. When I ask what tools they use, the answer is often SurveyMonkey or Zoomerang.

I used SurveyMonkey a while back when I was on the client side with no budget, but it had so many limitations, when I wanted to do more advanced surveys, that I had to search for another tool. I tried Zoomerang, but I found it to be expensive given the limited features it offered. Besides, I found the interface wasn’t very intuitive. At another company, where I led the research team, the budget allowed me to use VantagePoint, which I then abandoned for Confirmit. The latter is a very advanced tool, but also quite expensive. So my quest continued and then a couple of years ago I stumbled upon SurveyGizmo, which really surprised me with a long list of features I wanted in an online survey tool at a very low cost.

There are many online survey tools that offer a free limited version so people can test the tool and have a feel for it. However, not all free versions are equal. Some give you more than others and you get the chance to really experience how useful the tool can be. This is the case of SurveyGizmo vs. SurveyMonkey. Even at the lowest subscription plan ($19/mo), SurveyGizmo offers many more features than SurveyMonkey.

Since people keep asking me what online survey tools they can use for free, I decided to share the free online tool review I made of the three online survey tools that seem to be most popular, on a set of features that would allow me to create from simple to slightly more advanced surveys.

General Overview
Number of surveys	Unlimited	Unlimited	Unlimited
Number of questions	Unlimited	10	12
Number of responses	250	100	100
Multi-page surveys
Account users	1	1	1
Question types	20	15	15
Graphic survey templates	15	15	17
Real-time reporting
Data exporting
Never delete data
Supports all languages
Price	Free	Free	Free
Question Types
Textbox – Short text
Essay – Long text
Multiple text fields
Table of text fields
Checkbox
Table of checkboxes
Radio button
Table of radio buttons
Drop-down menu
Tables of dropdown menus
Ranking
Constant sum
Instructions/Text
Image
Video
Contact information form
Date format
Survey Formatting
Customizable font family
Customizable font size
Customizable font color
Customizable background colors
Add/Edit Options in Bulk
Add an open textbox so users can add to their own choice
Change orientation of labels and options
Change position of labels
Editable Next, Submit, and Close buttons text
Optional question numbering
Fully Customizable XHTML/CSS templates
Auto-format as currency, percentage, or a whole number
Editable general error message
Use your own logo for survey branding
Change length, height, and width of textbox or table
Editable survey width
Report Creation Options
Real-time online report
Add only certain questions or all of them to the report
Graphing – Use a bar graph, pie chart or spreadsheet to view answers
Export Data to Excel, CSV
Browse All Responses Individually
Can change titles and internal report values
Clear all responses
Survey Deployment
Send email using survey tool
Password protection
Set a cutoff date and time
Set maximum response count
Enable IP blocking
Redirect browser
Other Survey Options
Make questions required
Randomize the answers to your question
Reorder Questions
Set how many checkboxes someone can check
Automatically put in a value already collected into the answer field
Upload images
Embed external images and media
Min and Max options for numerical answers
Prevent search engines from indexing survey
Thank You page
Add a “Close” button to Thank You page
Back Button Optional
Progress Bar Optional
Add a unique survey identifier to each link
JavaScript option embed surveys using JavaScript
Embed surveys using an iFrame
Create hidden variables
Compliance with Section 508 guidelines of the Rehabilitation Act
Import Survey from Word
Export to Word
3rd Party Integration
Open API access
Facebook integration
Twitter integration
MailChimp integration
Affiliate program
Support
Support via email
Support – FAQ, Tutorials

There are many other tools that offer a free version, but I found them ever more limited that those shown here. As you can see SurveyGizmo has many more useful features in its free version, although a few are missing. An weak area is the survey deployment capabilities, where SurveyMonkey does better. For example I miss in SurveyGizmo’s free version the ability to send survey invitations within the tool (you can do it with a paid subscription), but that can be fixed using MailChimp or any other email distribution system. If you use an external system, be aware that in order to send reminders, you have to download the data to check who answered the survey and then extract those from the reminder list. It is a bit of work, but doable. Neither SurveyMonkey or Zoomerang let you download the data without upgrading to a paid subscription.

As a professional market researcher I usually need very robust tools, so free online survey tools usually fall short on providing features needed to develop complex surveys. Noticed that none of these 3 free versions offer skip logic, but if you only need to deploy linear surveys without having to skip questions or reroute respondents, and don’t want or can’t spent a dime, I recommend you give SurveyGizmo a try. If you have some change to spare, I recommend you use one of SurveyGizmo paid subscription plans, which don’t require a long term contract obligation and have many more features at a very low price.

by Michaela Mora

Posted on March 12, 2010

In my previous article about how to connect to your customers with the help of research insights, I listed some of the key research questions that any business wanting to grow and succeed should ask. But, how do you do it?

Here we need to make a distinction between data collection methods and types of research based on analytical approach, which are often confused. Data collection methods differ based on whether we want to conduct quantitative or qualitative research.

Qualitative research, which is exploratory in nature, usually uses data collection methods such as focus groups, triads, dyads,  in-depth interviews, uninterrupted observation, bulletin boards, and ethnographic participatory observation.

Quantitative research, which looks to quantify a problem, collects data through surveys in different modalities (online, phone, paper), audits, points of purchase (purchase transactions), and click-streams.

As for types of research, I mean the approaches used to analyze the data collected. Depending of the business objectives, we may decide to gather data to conduct a market segmentation, product testing, advertising testing, key driver analysis for satisfaction and loyalty, usability testing, awareness and usage research, and pricing research, among others.

 When to use each of these data collection methods and types of research depends on the business issues we are dealing with in one or more of four key areas:

• Awareness: Let the market know that the product or service exists
• Targeting: Reach the target segments with the highest profit potential
• Acquisition: Optimize the marketing message, offer,  and price that will close the sale
• Retention: Generate repeat purchases from current customers

The chart below, which we call the Relevant Wheel, shows when it is most appropriate and relevant to conduct different types of research.

Our clients find this chart to be helpful and use it as a reference to determine when a particular type of research is needed. Once this is defined, we discuss the most appropriate qualitative or quantitative data collection methods.

 So next time you wonder what type of research to conduct, I invite you to ask yourself where the particular problem at hand belongs to (Awareness, Targeting, Acquisition or Retention ) and then use this chart to to guide your decision on the most appropriate type of research. I hope you find it useful.

by Michaela Mora

Posted on March 10, 2010

I often meet entrepreneurs who have started, or are starting, a new business and who ask me what type of market research they should conduct. Some are inventors who have come up with a gadget they love, but don’t know if there is market for it. Others have launched products and services and soon realize they need to re-think product features, benefits, advertising and the customer experience.

Regardless of whether your customers are consumers or business decision makers, at Relevant Insights we always recommend assuming a customer-centric market research approach in alignment with our clients’ business objectives. This is based on two basic principles:

• Learn how to connect with your target customer by getting a 360 degree view of his behaviors, experiences, knowledge and emotions.




• Have a clear idea of what you want the customer to think and do regarding the company’s brand and products having in mind the ultimate business goals: acquire and retain customers.

A market research plan based on these two principles would include four key areas of research, which become relevant depending on the internal knowledge available inside the company in connection with the lifecycle of the product. These four areas are:

• Awareness: As a Cuban saying goes “the baby who doesn’t cry, doesn’t eat,” we have to let the market know about our products and services if we want buyers.




• Targeting: Businesses usually are more successful if they are able to define early on who their target customers are, and which customer segments have the highest profit potential. 




• Acquisition: Without customers any business is bound to fail, so we need to know how we can attract new customers through appealing product benefits, the right pricing model, and effective marketing programs.




• Retention: Generating repeat purchases from current customers is the most cost-efficient path to business growth, so a retention strategy is a must for any business that wants to thrive.

There are many research questions that can be asked within each of these area depending on the stage a product, brand or company is at. Below are some of the questions that should be in the short list of any business that wants to succeed.  

Find the answers to these questions and you will learn how to connect with your target customers and be light years ahead of your competition.

by Michaela Mora

Posted on March 2, 2010

In my previews article about why new packaging fails to drive sales I discussed how brain plasticity may explain the failure to drive sales in 9 out of 10 new packaging designs.

Neural connections are formed as we are exposed to different products and quickly get used to see them in a particular packaging (shape, size, brand logo). We know that it harder to unlearn old habits than to learn new ones, so when a new product surfaces on the shelf, we may not notice it unless the packaging is compelling enough to make us pay attention. Research has shown that contrast improves the odds of shelf visibility for a new packaging, so a contrast jolt may be needed to take us out of the rut. However, in the case of existing products aiming for a fresh look to increase sales, the contrast can’t be so big that consumers are unsure whether they are seeing the same brand, or frustrated by not being able to recognize it and find it, like it happened for Tropicana and Gatorade last year. This means that new packaging designs need to balance contrast and visual continuity in brand identity.

Existing products are not condemned to live with the same packaging in which they were born, but in order to succeed, marketers should not ignore brand expectations formed by the experience consumers have had with a product or product category. Those expectations have a physiological base in groups of neurons firing together, being used over and over, and getting trained over time in perceiving a product – its packaging, mode of use and underlying needs it meets – in a particular way.

Aside from physical attributes (i.e. shape, size, colors,  graphic elements), a new packaging has a greater chance of success in attracting buyers if it fulfills unmet needs. The Heinz® Fridge Door Fit™ bottle launched in 2006 offering storage flexibility – which increased ketchup consumption by 68% - is a good example of how packaging can drive sales. Consumers may not be aware they have this type of needs until they see a solution. In this case new brain connections sprout and with them new expectations about a product or a whole product category are born.

Of course, we know that packaging alone is not the only factor weighing on a purchase decision. Deep seated product preferences,  the shoppers’ decision-making process and attitudes and lifestyles have often a greater impact on purchase decisions than packaging.

Some consumers enter a store with a tunnel vision, looking only for the brands they are used to buy. Others, however, may shop first for the product category and then consider competitor brands within the category, specific product benefits, a particular package size or a price point. For certain products they scrutinize the product labels looking for information that helps them decide which brand to pick, while for other products, they only care about the price. Again, it is about behaviors rooted in trained neuronal connections based on experience.

Finally, there are other situational factors that could make a consumer deviate from its habitual shopping behavior: the brand is out of stock, its price increased, a friend recommends trying a new product, competitor brands are giving an irresistible offer,  and a new and seemingly improved alternative is offered for trial, among others.

Having said all this, we can’t deny that packaging is a contributing factor to brand identity. As research has indicated, it is easier to damage a brand than grow it via packaging, so getting it right is not a trivial matter. Although many new packaging systems fail, packaging research can help to increase the odds of success. To that end, marketers charged with the task of launching a new product or refreshing the look of an established brand should conduct research to:

1. Understand how consumers shop the product category and what role packaging plays in purchase decisions
2. Understand brand and product perceptions and how deeply rooted they are
3. Identify unmet needs
4. Understand how the new packaging departs from consumers’ expectations and what visual elements can be used to preserve brand identity
5. Assess how the new packaging will stand out in a cluttered environment  among competitor brands
6. Test different packaging concepts and evaluate the effectiveness of graphic elements and label information in adding uniqueness and encouraging purchase intent

by Michaela Mora

Posted on March 1, 2010

Last year PepsiCo received a lot of “buzz” thanks to a couple of marketing stumbles for two of its big brands, Tropicana and Gatorade. In both cases, the brands got makeovers that stripped their brand identity, for the sake of simplicity, and gave them a quite generic look. This resulted in confused consumers, which, in turn, hurt sales. In the case of Tropicana, after consumers’ protest, PepsiCo reinstated the old packaging with the familiar orange with the straw. But for Gatorade, now called “G,” PepsiCo continued ahead with the new packaging and label.

According to PepsiCo’s Americas Beverages chief Massimo d’Amore, who was interviewed by the WJS, in the case of Gatorade, certain level of confusion was expected, but that internal research indicated that “the ‘G’ campaign scores high in the coolness factor.”

For a while I wondered what type of research they did, who was the target sample and what metrics were used to measure success. Luck would have it that I had the chance this year to meet Jimmy Smith, the creator of the “G” TV commercials. He told me that the ads were targeting teenagers between 13 and 17 and they were looking to create buzz, which they did. I admit that “coolness” is likely to be an important driver in this market segment, but can misfire in other segments. I have proof in my own household. My husband, a fan of Gatorade and part of the 37.7% of consumers in the age group 35-44 who drink Gatorade monthly*, was certainly lost once the packaging changed. He thought that the new “G” packaging was one of Walmart’s store brands.

In July 2009, Beverage Digest estimated that Gatorade had lost a 4.5% share of the sports-drink market and its volume slipped 17.5% in the first six months of 2009 after the launch of the new packaging in January. It seems that the “coolness” factor may have worked against Gatorade’s brand equity.

So, if you ever get involved in a brand makeover or new packaging re-design make sure to do branding research that allows to measure the overall impact of the changes on the brand recognition and sales. The best approach to branding research combines both qualitative and quantitative techniques. Neither alone gives a solid answer, so I would suggest to consider following this research plan:

1. Define the problem. First, make sure it is an image problem and not a problem with the product or service. Does the brand need an updated look to attract new market segments? Does the brand elicit negative associations due to blunders from the past and need a fresh start? Does the brand need to be aligned with a new vision and mission for the company? The answers to these questions will define how much of a radical makeover your brand can afford without alienating customers.




2. Explore current brand perceptions, usage patterns, customer experience, and problem areas. This will give you a feel for the brand legacy and how much you can depart from it. Depending on your target market and budget, some of the data collection techniques you can use might include focus groups, in-depth interviews, or on-site research (ethnography).




3. Create several new brand concepts and test them. Use the results from the initial qualitative research to develop different branding concepts. Explore initial reactions to the concepts, fine-tune them, and test them again using qualitative techniques.




4. Follow-up with quantitative research. Use a large enough sample to select a winner and project the results to your target population. Define the screening criteria of your sample carefully. To certain market segments, some brand attributes may be more relevant than to others, so make sure all segments are represented to avoid biased results.

The combination of qualitative and quantitative research techniques will give you in-depth insight and a solid foundation for decision making. Don’t be tempted to only run a couple of focus groups or an online survey and feel you know everything. Conducting branding research with the right approach will pay off and prevent you from making mistakes that will hurt your bottom line.

* SMRB – Summer 2009 Adult 6 Months (Feb 09 – Sept 09)

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