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MKT5612 Applied Marketing Research

MARKETING RESEARCH PROJECT







Content
Executive Summary .................................................................................................................................... 2
1. Background Information .................................................................................................................. 2
1.1 Company Background ........................................................................................................................................ 2
1.2 Marketing Decision Problem Definition...................................................................................................... 2
1.3 Marketing Research Problem Definition .................................................................................................... 2
1.4 Research Design .................................................................................................................................................... 3
1.5 Survey Sample Overview .................................................................................................................................. 3
2. Research Overview .............................................................................................................................. 4
3. Findings and Analysis ........................................................................................................................ 4
3.1 Findings #1: Understanding of the alcohol market .............................................................. 4
3.2 Findings #2: Current Usage Behavior ........................................................................................ 6
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3.3 Findings #3: Brand Measurement ............................................................................................... 9
3.4 Findings #4: Media Habit and Promotion .............................................................................. 12
4. Hypothesis Analysis ......................................................................................................................... 13
4.1 Hypothesis #1: Understanding of the alcohol market ....................................................... 13
4.2 Hypothesis #2: Current Usage Behavior ................................................................................. 15
4.3 Hypothesis #3: Current Usage Behavior ................................................................................. 17
5. Recommendations ............................................................................................................................ 19
6. Limitations ............................................................................................................................................ 20
Appendix ....................................................................................................................................................... 21

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Executive summary
This project would explore the market performance of Bacardi Breezer by sending
questionnaires to the category recognizers of FAB (Flavored Alcoholic Beverage) drinks or
the customers of Breezer. The questionnaire contains questions about the demographic
information of the respondents, product usage behaviors, brand awareness measurement,
media habits and promotion methods, and the hypothesis test analysis on the respondents
attitude variation among different subgroups or attitudes. Based on the data collected, some
research findings could be carried out and some suggestions for the future development of
Bacardi Breezer could be generated based on the theoretical analysis. The software and
technical supports acquired in this research includes Quatrics ((http://www.qualtrics.com/ ),
SPSS, Microsoft Office etc.

1. Background Information
1.1 Company Background
Bacardi Limited is the largest privately held, family-owned spirits company in the world.
Originally known for its eponymous Bacardi white rum, it now has a portfolio of more than
200 brands and labels. The brand that would be discussed in this project is Bacardi Breezer,
which is categorized in RTD FAB (Ready To Drink, Flavored Alcoholic Beverage) business
of Bacardi.
In China, the FAB market has been expanded fast during the past few years. In 2014, the
predicted consumption amount of FAB reaches 6100 million Liters (Source: Data-monitor).
However, the fast growth of FAB in China market has brought Bacardi few improvements,
the Breezer business in China market has been growing quite slowly. The reasons behind this
phenomenon would be explored in this project and some suggestions for Breezers future
development would be carried out. Due to the limited knowledge known about the customers,
some marketing research methodologies would be adopted to enable the writer to have better
understanding of the targeting and potential customers of Breezer.
1.2 Marketing Decision Problem Definition
In this project, the management decision problem (MD problem) is defined as to develop a
strategic plan for the future development in China market based on the comprehensive
understandings of targeting customers.
1.3 Marketing Research Problems Definition
Based on the MD problem, the marketing research problems (MR problems) are defined as
following:
To understand customers current usage behaviors and attitudes towards Breezer;
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To compare Bacardi Breezers brand image with that of its main competitors;
To investigate the welcomed media channels and promotion methods to the
targeting customers
1.4 Research Design
Sampling method: Samples used in this research were collected through the online
questionnaire survey via Qualtrics (http://www.qualtrics.com/ ).
Respondent criteria: The respondents in the survey include both male and female, and
they are required to be alcohol non-rejecters who have tried FAB products during the
last 3 months. Besides, the respondents shall be the people who are able to recognize
the key brands in FAB category, such as Breezer, RIO etc.
City coverage: Based on the results, the living places of the respondents cover several
cities, including the tier 1 cities, for example Beijing, Shanghai and Guangzhou, and
also tier 2/3 cities, such as Xian, Wuhan and Chengdu.
Sample completion: This survey has collected 189 responses in total, among them,
157 are valid samples considering the completion level and reasonableness, the valid
response rate is 78.9%.
1.5 Survey Sample Overview
Among the 157 valid responses, some basic understanding of the demographic information
from the respondents could be shown as following:

Exhibit 1

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2. Research Overview:
This project contains 5 steps to carry out the final suggestions and strategic plan to the object
brand, Breezer. The analysis process is listed as following:
1. Understanding the alcohol market:
This part is designed to have an overview of the current situation of FAB in China market,
including the category recognition of FAB, brand awareness of the drinks, etc.
2. Current customers usage behaviors:
This part would mainly explore the consumer usage behaviors through the key Ws
terms (including Where, What, (with Whom), Why).
3. Brand measurement:
In this part, the brand image of Breezer would be compared with its main competitors in
the FAB category, such as RIO, Kirin and Reloaded Red etc. the results of the comparison
shall be able to show some of the customers key considerations and perceptions towards
Breezer.
4. Media habit/promotion methods:
This part would discover customers media habits and their favorite promotion methods,
in order to make proper promotion and advertising plans in future.
5. Hypothesis analysis:
This part is designed to explore whether the respondents attitudes would vary among
different subgroups or attributes, details of the analysis would show in latter part of the
report.

3. Findings and Analysis
3.1 Findings #1: Understanding of the alcohol market
3.1.1 Popularity of FAB:
Based on the results of the questionnaires, it can be seen that beer and wine are still the
most popular alcohol drinks in China market, while the category FAB takes the 3
rd
place,
namely 45% of the total. This result may indicate that the FAB drinks in China have rich
customer resources and it is widely accepted by the public.

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Exhibit 2
3.1.2 Key players in FAB category:
A table can be generated by summarizing the packaging, volume, flavor and price of the
main brands in the FAB drinks market nowadays in China:

Exhibit 3
From the comparison, it can be indicated that Bacardi Breezer seems to provide different
flavors at a reasonable price. A potential limitation of Breezer might be that it only has
the bottle packaging, while RIO and Kirin also provides can packages.
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Exhibit 4
Considering the brand awareness of the four brands, Bacardi Breezer takes the top
among the competitors, and it also has the highest conversion rate (from visitor to buyer).
RIO is the brand follows the figure of Breezer closely, therefore it is a powerful
competitor of Breezer. Due to few respondents mentioned their experiences on drinking
Reloaded Red (5 aware and 3 trial), this brand would not be discussed in latter part.

3.2 Findings #2: Current Usage Behavior
3.2.1 Key Ws
The key Ws including where: where is the most often consumed place? What: what is
customers favorite flavor and consumption volume? Who: drink Breezer with whom?
Why: why people drink Breezer for the first time and what are the triggers?
Where
It can be seen clearly from the chart that among Breezer users, KTV is the most often
consumed place, accounts for 33%. At home during meal ranks 2
nd
accounts for 26%.
However, in bar/pub consumed less compared with KTV.

Exhibit 5

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What
Among Breezer tried respondents, lime is the favorite flavor has a percentage of 39,
followed by lemon, blueberry, peach, grapefruit and orange.

Exhibit 6
For the consumption volume, 70% of respondents choose 1 bottle per time. The mean for
consumption volume is 2.74 and median is 2.

Exhibit 7
There are also some improvement areas supposed by the respondents. 48% of
respondents hope to develop new flavor, such as mix fruit flavor. 29% of respondents
want a price reduction. And 10% of respondents hope to improve the cap design to open
the cap easily, that is to say unscrew the cap with hand and does not need a bottle opener.


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Who
Breezers customers are shown as follows:
There are more female customers than male customers. 53% of the respondents age
range from 25 to 34. There are 8% more respondents from tier 1 city than tier 2/3 city.
Most of the respondents have a bachelor or higher degree and monthly income is RMB
3,000- 4,999 accounts for 53%.

Exhibit 8
Among Breezer users, they often drink Breezer with friends, schoolmate and colleagues,
accounts for 88%. It means that Breezer is a drink can share with friends. However, there
is also 23% of the respondents choose to drink Breezer alone.







Exhibit 9
Why
54% of respondents first time drink Breezer because of the good-looking product/liquid
color. 49% of respondents drink due to others recommendation. In addition, diverse
flavors, good-looking package color, intention to try and moderate alcohol level were
chosen almost equally, accounts for 39%, 37%, 33% and 32% respectively.
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Exhibit 10

3.2.2 Breezer purchase channel
Convenience store is the channel Breezer users purchase most. Meanwhile, hypermarket
ranks 2
nd
accounts for 30%. However, respondents purchase less in bar/pub and
nightclub.

Exhibit 11

3.3 Findings #3: Brand Measurement
3.3.1 Breezers Performance on Key Attributes Compared with its
Competitors in FAB Category
In the questionnaire, first it requires respondents to give importance to each listed key
attributes and then rate for the key attributes of different brand. The key attributes
includes high brand awareness, good taste, variety of flavor choice, beautiful color of
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products, stylish package, fashionable brand image, reasonable price, easy to buy, variety
of package volume and variety of package format.
Among the attributes, Breezer performs better in high brand awareness and beautiful
productscolor. Meanwhile, Rio performs better in variety of package format and variety
of package volume. What Breezer can improve is to increase the variety of package
format and package volume. For example, to launch can format or sharing package.
When compared with Kirin, Breezer performs well on high brand awareness and
beautiful color of products. Kirin performs well on price. Breezer can make
improvements on price attribute.


Exhibit 12

3.3.2 Performance on Key Attributes- Dual users
Compared with Rio, Breezer performs better in brand awareness, product design and
package, such as taste, product color, and variety of flavor choices, stylish package. Rio
performs well on varieties of product format and volume, which means that Breezer has
a plenty of room to improve in the variety of package format and package volume.
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Exhibit 13
3.3.3 Breezers Brand Perception
Based on the performance of Breezer on the listed attributes and the importance
respondents given to each attribute, it can draw the following map to find out which
aspect Breezer did well and which aspect Breezer need to improve.

Exhibit 14
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The attributes on the top right corner are those have a good performance and rated higher
importance by respondents. It can be seen clearly from the following chart that it is good
to keep Breezers stylish and colorful package. The attributes in the left top corner are
those have a good performance but respondents rated lower. It is nice for Breezer to have
good taste and reasonable price. What is more, the attributes on the left bottom corner
with lower importance mean that although it does not perform well, but it does not matter.
Additionally, the right bottom corner is the attributes Breezer needs to improve. Breezer
can improve its products on variety package format and package volume.

3.4 Findings #4: Media Habit and Promotion
3.4.1 Information Channel - Alcohol
Friends recommendation is the most popular information for the alcohol followed by
social network, portal website, and TV advertisement.

When compared the Breezer information channel with the alcohol information channel,
it can see clearly that Breezer needs to improve its information channel on social
network, TV advertisement. Because customers get information from those channels
often.

Exhibit 15
3.4.2 Welcomed Promotion Methods
The most welcomed promotion method is direct discount accounts for 58%. Customers
are also interested in buy one get one free activity and new product free tasting activity,
accounts for 46% and 41% respectively.
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Exhibit 16
4. Hypothesis Analysis
4.1 Hypothesis #1:
As far as we are concerned, female and male consumers may have different attitudes
towards alcoholic products. Generally speaking, there is a common conception that
female may prefer low concentration alcoholic beverage while male may prefer strong
liquor. If it is true, the female and male consumers may value our product differently.
Therefore, we want to find out the gap between female and male consumers in terms of
the importance of our product 10 different attributes.
4.1 .1 Process:
Recoding: we recode the gender, grouping to 1=female and 2=male
Question: we want to know do the mean differences of the 10 attributes importance
ratings between female and male make statistical sense. Separately we can make 10
questions, namely does females attitude towards brand awareness significantly differ
from males, does females attitude towards taste significantly from males, and etc.
Test: Independent Simple T Test
Hypotheses:
H0: A1m = A1f (females attitude towards brand awareness doesnt significantly differ
from males)
H1: A1m A1f (females attitude towards brand awareness does significantly differ from
males)
Repeatedly, we can make 9 more hypotheses in terms of the 9 other attributes.



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4.1.2 Result

1. Significance Testing
For stylish package, firstly, We use the Levenes Test (based on F-statistic), p-value
=0.011<0.05, suggesting variances are unequal.
Then we check the row equal variances not assumed,the P-values of Stylish Package is
0.016,which is less than 0.05, thus the null hypotheses should be rejected, and that is to
say female and male consumers do have different attitudes towards Stylish package.
For High Brand Awareness and Variety of Package Format, the P-values of the
Levenes Test (based on F-statistic) are both smaller than 0.05, but after checking the
P-value of equal variances not assumed,they are larger than 0.05, thus the null
hypotheses should not be rejected, and that is to say no big difference on attitudes
towards these two attributes between male and female.
For rest P-values of the Levenes Test (based on F-statistic) are all larger than 0.05, then
checking the row of equal variance assumed the P-value are all lager than 0.05, thus the
null hypotheses should not be rejected, and that is to say female and male consumers do
not have different attitudes towards these attributes.
2. Mean Comparison
Female Male Gap
Stylish Package 1.96 2.70 (0.736)

3. Implication
There is great gap between females and males attitudes towards package. Male
consumers think Stylish package is more important compare to female consumers.

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4.2 Hypothesis #2
The flow of hypothesis 2 is similar with hypothesis 1, we just choose different subgroups
to test their differences in attitudes, namely consumers from tier 1 cities and consumers
from other cities.
4.2.1 Process:
Recoding: we recode the location, grouping to 1=Tier 1 city and 2=Tier2/3/4 cities
Question: similar with hypothesis 1
Test: Independent Simple T Test
Hypotheses:
H0: A11 = A12 (tier 1 cities consumers attitudes towards brand awareness dont
significantly differ from that of consumers from other cities)
H1: A11 A12 (tier 1 cities consumers towards brand awareness significantly differ
from that of consumers from tier 2/3/4 cities)
Similarly, we can make 9 more hypotheses in terms of the 9 other attributes.
4.2.2 Result
F Sig. t df Sig.
(2-tailed
)
Mean
Differenc
e
Std. Error
Differenc
e
High Brand
Awareness
5.534 .021 1.336 70 .186 .333 .250
1.336 62.749 .186 .333 .250
Good Taste 2.851 .096 .664 70 .509 .083 .126
.664 61.433 .509 .083 .126
Variery of flavor
choices
2.343 .130 .621 70 .537 .111 .179
.621 68.021 .537 .111 .179
Beautiful color of
the products
.042 .839 -.098 70 .922 -.028 .284
-.098 69.880 .922 -.028 .284
Stylish package .847 .361 .449 70 .655 .111 .247
.449 69.169 .655 .111 .247
Fashionbale brand
image
.259 .613 .854 70 .396 .194 .228
.854 69.712 .396 .194 .228
Reasonable price .282 .597 .415 70 .679 .083 .201
.415 69.958 .679 .083 .201
Easy to buy 2.478 .120 1.195 70 .236 .222 .186
1.195 65.397 .236 .222 .186
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Variety of package
volume
.351 .555 .547 70 .586 .167 .304
.547 69.986 .586 .167 .304
Variety of Package
format
.074 .786 .571 70 .570 .167 .292
.571 69.886 .570 .167 .292

1. Significance Testing
The P-values of High Brand Awareness is less than 0.05, thus the null hypotheses should
be rejected, and that is to say they do have different attitudes towards brand awareness;
The P-values of the rest attributes are larger than 0.05, thus the null hypotheses should
not be rejected, and that is to say they do not have different attitudes towards these
attributes.
2. Mean Comparison
3. Implication
i. Generally speaking, there is not too many differences between tier 1 cities and
other cities in terms of consumers attitudes towards our product.
ii. Relatively speaking, consumers from tier 1 cities care more about the brand
awareness than other consumers do.

4.3 Hypothesis #3
In our research, we find that people have different importance ratings of the 10 attributes.
Among the 10 attributes, we care most about the consumers attitudes towards the flavor
and package. Thus, we want to know that does the difference between consumers
importance ratings for.
4.3.1 Process
Variable Choosing:
Q15.2: Consumers attitude towards FAB in terms of the importance of Good Taste;
Q15.2: Consumers attitude towards FAB in terms of the importance of Beautiful Color
of the Products.
Tier 1 Cities Tier2/3/4 Cities Gap
High Brand Awareness 2.39 2.06 (0.333)
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Tested Sample Size: 72
Test: Paired Sample T Test
Hypothesis:
H0: A1 = A2 (the importance rating of Good Taste is similar with the importance rating
of Beautiful Color of the Products)
H1: A1 A2 (the importance rating of Good Taste is different from the importance rating
of Beautiful Color of the Products)
4.3.2 Result


1. Correlation
The P-value of the correlations of the two variables is 0.803, larger than 0.05, thus these
two variables are not correlated
2. Significance Testing
The P-value, generated by the Paired Sample Test, is 0.000 less than 0.05, thus the null
hypothesis should be rejected and that is to say the two variables are different.
3. Mean Comparison
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For the Good Taste: mean is 1.26, SD is 0.531;For the Beautiful Color of the Products:
mean is 2.40, SD is 1.195
4. Implication
People care more about the color of FAB products instead of the taste. A reasonable
speculation for this result is that people would like to enjoy the atmosphere of drinking
this kind of products instead of for pure taste.
5. Market Recommendations
Our research was commissioned to investigate the consumers behavior and attitude in
order to examine Breezers brand image, as well as to discover consumers preference on
media channels and promotion methods. Based on the analyses and findings that we
concluded before, we can draw three market recommendations as follows.
5.1 Targeting-We recommend that Breezer could target at social and
out-going people and focus on occasions that are suitable for collective
activities.
According to our research, FAB is the third popular alcoholic beverage, following beer
and red wine. And among those respondent who have tried Breezer, 33% of them,
namely the largest proportion, consumed this product at KTV and 88% usually drink
Breezer with friends, only 23% will drink it alone. Moreover, when asked about the
reasons they choose Breezer for the first time, good-looking package and friends
recommendation are the two major reasons. Hence, we can draw a conclusion that
drinking Breezer is more like a social activity to people instead of an individual deed.
In the light of this conception, we think that Breezer could target at social and out-going
people. Because they are more like to hang out with friends, especially to drink alcohol
together. Our product is alcoholic but people can drink a lot without getting drunk.
Besides our product has a good-looking appearance and novel flavor. It can decorate the
party, making the party more fashionable. Therefore, this group of people can be
Breezers core customers. What Breezer should do is to educate these people and let
them know Breezer is exactly what they are looking for.
5.2 Brand/Product-We recommend that Breezer brand should Keep the
advantage of fashionable brand image and high awareness and develop
new package format, volume and design.
According to the respondents rates, variety of package format and variety of package
volume are two very important attributes of FAB products. However Breezer does not do
very well in these two attributes.
Besides, the respondents also mentioned that they hope Breezer could develop a new
flavor, reduce price and make the product easy to decap. Relatively speaking, we think
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that redesign the cap would be the most cost efficient choice. Consumer can feel this
convenience immediately.
Moreover, we conduct a hypothesis test that if the color significantly more important
than the flavor in the eyes of people who tried Breezer. The result says that the color do
be more important, which is also in accordance with our former conclusion that people
usually do not drink Breezer alone. Therefore a colorful package will make them
glamorous in front of their friends.
5.3 We recommend that Breezer should attach importance to the
product placement in TV programs and social networks and also pay
more attention on product channel, CVS and KTV.
Traditionally, wine dealers will put their resource into the retail chains, especially for the
in-store promotions. However, according to our research social networks and TV
programs are also very important information sources for the consumers. People are
easily influenced by the opinion leaders online or in the TV programs, especially the
latter one. The TV programs can represent a real scenario where handsome actors and
actress drink some beverages and wines. This scenario can give the audiences a very
direct incentive so that they would like to imitate. The TV programs can play a very
important role in educating the customers.

6. Limitations
Limited sample size
There are 189 interviewees in total answered the questionnaire. The valid response is 157.
However, among the respondents, only 57 respondents are Breezer users, which means
they drank Breezer before. The sample size is not large enough to represent the whole
Breezer market.
Limited knowledge of the market
The outcome is theoretical given by the result of questionnaire and the output of SPSS.
Whether it is feasible to improve the product is not clear without actual information of
the market.
Appendix
Questionnaire