ADV 340 Exam 1

What are the limitations of biometrics?

- Expensive - Requires trained individuals to administer and interpret - Relatively small samples - Needs to be viewed as simply another tool in the toolkit

Outlook and Next Steps

- distinguishing themselves from other brands - improving their services - packaging

Hello Fresh Indirect Competitors

Giant, Whole Foods

Know how the terms emergent design and redundancy relate to qualitative research.

emergent design: adjusting our inquiry plans and strategies in response to what we are learning as our study unfolds. redundancy: you must stop when you begin to get the same answers because then you aren't learning anything new

How did I use multiple research methods to gain insight for my prescription drug study?

showed prescription ads, biometrics, saw which people looked at symptoms or side effects.

What are the three key pieces of information into which we hope to gain insight?

target audiences factors that motivate purchase behavior unique characteristics of the bran d

What is the number one reason people cancel?

too expensive

Psychographics (Consumer Analysis)

• People who don't know how to cook more than a few basics, but would like to learn more • People who are tired of eating takeout foods or meals that are really out-of-a-box • People who live in places where they don't have ready access to "exotic" or specialty ingredients • People who don't want to buy large quantities of rarely-used ingredients (or ingredients they've never tasted before) just for one recipe • People who do want to cook several nights a week, but don't have time to nd all the ingredients for new recipes • People who are bored with the same-old, same-old and want new inspiration

What is one of the Next Steps for HelloFresh?

• Why do consumers choose Blue Apron or Plated over Hello Fresh since they are similar in their price, product, and availability? • What would make Hello Fresh a dominant, known name? • How could Hello Fresh improve their app to make it more functional? • How to convey the meal-kit delivery service in their commercials and other advertising? • What other food options or plans would make Hello Fresh more attractive? • How to broaden their target market to more than just empty nesters, singles, and families?

Maturity (PLC)

- Intense competition - Many brands with minor differences - Brand Objectives: defend postion, take share from competition, promote new users and users, support the retailer - Advertising Strategy: maintain position in consumers minds, differentiate based on intangible differences (how people feel, we buy for the psychological benefits, we justify for the mind), stresses new users, important for brands to establish unique selling points -Products sit on shelves, brands sit in people minds

Demographics (Consumer Analysis)

- The largest age group of users are between the ages of 25-34 - Most people have children under the age of 18 - Most users are white - Most users are from the West - Most people are Urban - Most people have a college degree - Most people have a household income of over 100k

Growth (PLC)

- number of users will be higher, most of every stage - increase in number of competitors - market goal: maximize market share by gaining high level of trial - Advertising Strategies: make people by the specific brand, generate specific brand demand, need unique positions and benefits, less than introduction - Promotions are important to encourage users to try for the first time - Focus on maintaining and increasing retail distribution outlets (high use of trade promotion)

Know how to use the industry reports shown in class

1) Ad Age DataCenter - Contains profiles and expenditures of advertising agencies as well as employment data and industry information. 2) Business Insights: Provides company histories, market share articles, business ranking annual, company profiles and industry profiles. 3) IBISWorld - IBISWorld contains reports on industries by North America Industry Classification System (NAICS). These reports provide trends, statistics and analysis on market size, market share of competitors, and industry growth rates. Each study examines the barriers to entry, operating cost structure (industry averages), technology & systems, and domestic & international markets. 4) PrivCo - PrivCo is the premiere source for business and financial data on major, non-publicly traded corporations, including family owned, private equity owned, venture backed, and international unlisted companies. On first log-in you will need to create a personal profile using your UTK email address which will be used when you log-in in the future. Click Log out when exiting.

components of a situation analysis

1) Introduction 2) Industry Overview 3) Client Profile & Competitor Analysis 4) Consumer Analysis 5) References 6) Appendices

Product Life Cycle Stages

1) Introduction: wean product into the market 2) Growth: maximize market share early 3) Mature: Fight for market share 4) Decline: minimize time and effort to maintain market

What insight does biometrics offer? Why do we need to use such an approach?

1) Time to first fixation 2) Percentage fixated 3) Fixation duration 4) total visit duration 5) number of fixations

What type of data (i.e. measures) does eye-tracking provide?

1) fixation: where the person has looked 2) duration: how long the person looked 3) fixation sequence: gaze plot, order in which they looked at things on image 4) proportion of time per area of interest

What are some limitations of qualitative research?

1) generalizations obtained from Qualitative research are severely limited. There is no assurance that the small number of individuals who participated in the research is in any way representative of the larger population from which they were draw 2) the small sample sizes used in qualitative research prevent the numeric description of finding 3) the interpretation of qualitative research data is more subjective than the interpretation of quantitative data because the basis of qualitative analysis is individuals' comments and verbal responses as opposed to numeric ratings or rankings

How do you analyze qualitative data and report the findings? (We covered some examples.)

1) prepare the data for analysis 2) read the text and areas of interest platforms 3) re-read and annotate, sort the items into themes 4) examine the themes and attempt initial definitions 5) construct the final form of each theme 6) report each theme THEME = what most consumer are saying/want

What is social listening?

The process of tracking conversations around specific phrases, words or brands, and then leveraging them to discover opportunities or create content for those audiences

Valuable Target Market Opportunities (Consumer Analysis)

1. People in their 20-30's who do not know how to cook or who do not want to cook multiple nights in a row. a. These people are considered the perfect prospect for a service such as Hello Fresh because they can use the recipes that are included and all of the recipes are quick and easy to make. 2. People who are tired of takeout food, or do not have takeout food readily available where they live. a. People who continuously order takeout food are going to get tired of the same foods over and over again. Hello Fresh o ers a variety of di erent foods in order to spice up your meals. 3. People who are bored with regular food or who do not want to buy large amounts of food or rarely used ingredients. a.Hello Fresh allows you to switch up your meals and doesn't force you to go out and buy a whole bunch of ingredients that you may only use once or twice. Meal kits include every ingredient you will need for their simple recipes and it is all delivered right to your doorstep. (1)

What is the estimated market size in dollars for 2016 for meal kit delivery?

1.5 billion in sales

Gross Domestic Product (GDP) -Q4 2016

1.9

Consumer Confidence Index (CCI) or Consumer Sentiment) - January 2017

100.57

Consumer Price Index (CPI) - As of January 2017

2.5%

What percent of consumers have a strong interest in trying meal kit delivery?

20%

when did the meal kit industry get started?

2012

what percent of US consumers have tried meal kit services?

3%

Unemployment Rate - January 2017

4.8 low rate

What percent of adults were satisfied with their purchase?

67%

How many adults have tried meal kits?

8 million

Know how the Hierarchy of Effects can be used to set research objectives

Awareness, Knowledge, Liking, Preference, Conviction, Purchase..THINK FEEL DO

What are the benefits and criticisms of the industry?

Benefits: saves time and stress, freshness, no wasted food, teaches cooking skills, promotes discovery, fun to do, brings people together, promotes portion control, exotic food for people who don't have access Criticisms: too expensive, too small of portions, too much packaging, inconvenient delivery schedules

Hello Fresh Direct Competitors

Blue Apron, Martha&Marley Spoon, Plated, Sun Basket, Muncher, Peapod

Primary Competitors

Blue Apron, Plated, Chef'd, Terra's Kitchen, Home Chef

What is consumer insight?

Consumers use products to achieve various ends. We want to understand...1) What does the product do for you? 2) How does it make you feel? The value

Of those who have tried meal kit delivery how many have cancelled their subscription?

Half

Hypothetical

Hypothetical-interaction questions present a plausible situation and ask the respondent to verbalize how he or she would respond in that situation

What celebrity chef does Hello Fresh employ?

Jamie Oliver

Laddering

Laddering assumes that dimensions are only the starting point for consumers, and that that persuasive advertising strategy responds to the benefits and values that consumers assign to these dimensions.

Introduction (PLC)

No sales, low awareness, no attitudes - Advertising: create awareness and knowledge, generate trials, understand how you are going to make yourself different from existing brands - Promotion: to retailers to get the shelf space, to consumers to simulate trials, secondary awareness, ex: free samples, testers, Costco and Sephora

What is Galvanic Skin Response (GSR?) Facial Coding? What insight does each offer?

One of the most sensitive markers for emotional arousal. • Measures changes in the skin's electrical conductivity and fluctuates based on certain bodily conditions. • The fluctuations are called the galvanic skin response. • Other physiological measures also change and contribute to fluctuations in GSR: heart rate, breathing, perspiration Facial Coding records the degree of emotional response generated by the stimulus, based on the Seven Core Emotions: surprise, fear, anger, sadness, disgust, contempt, or happiness

Market Size (Consumer Analysis)

Only about 8 million adults have tried meal kit services. HelloFresh has the most first time users within the last 30 days

Secondary Competitors

Purple Carrot, FoodStirs, Just Add Cooking, FreshDirect, Greenblender, Green Chef`

How does qualitative and quantitative research compare and contrast?

Qualitative research: to discover, smaller something, everyone gets the same version Quantitative research: to confirm something

What types of "niche players" still have an opportunity to grow in this market?

Regional and local services and those the can establish a unique angle, such as vegetarian/vegan, organic, eco-friendly, catering to special diets

Meal kit delivery is a disruption for what other industries?

Restaurant and the grocery business because they allow people to cook restaurant quality meals at home without going to the grocery store

What does SEPTE stand for?

Social, Economical, Political, Technological, and Environmental Considerations

Ethnography -- what is ethnography and how is it applied to consumer research?

The branch of anthropology that deals with the scientific description of specific human cultures. How we are able to understand what people want in their products. What kinds of people want what kinds of products.

What is the purpose of this research project?

The purpose of this research project is to gain insight into existing markets and identify potential target markets and offer advertising strategy recommendations

Could you interpret data and provide recommendations for eye tracking results (like we did in class)?

Yes, the darker an area (more red then green) the longer someone looked at that part of an ad. Wherever the person int he ad is looking, that is where the viewer is going to look. The eye direction is very important.

Ideal

ask a respondent to speculate abn "the ideal," for example, the ideal product or ideal type of product category advertisin Once the ideal is described, specific, existing instances are then discussed within the context of the ideal

Direct/factual

ask an individual to respond to a focused and generally narrow request for informational

Blue Apron weaknesses

cancellation factor - must complete a week in advance, lots of meals take over an hour to prepare,

meal kit delivery services

companies that offer and delivery to consumer's doors a box or bag of fresh ingredients for one or more meals, along with a step by step recipe with photos, showing the process

Grand Tour

excellent way to move beyond specification and structural questions because they are nonthreatening, have no single correct answer, and establish rapport by showing that the interviewer is interested in the respondent's experiences

Blue Apron strengths

first to enter the market, most well known, best deal, cheapest, best vegetarian option, best for people wanting to try new things

What are the advantages/disadvantages of focus groups? Personal Interviews?

focus groups 1) advantages: the interactive nature of the discussion helps focus group participants expand on and refine their own opinion, more stimulating and exciting for participants versus, more spontaneous than personal interviews, quicker to conduct and analyze depth interviews. 2) disadvantages: one respondent will dominate the discussion or impose a particular point of view, setting a tone and direction counter to that of the group's or moderator's preference, the potential for moderator-introduced bias, the possibility that group pressures can distort the expression of individual opinion, the data and insights obtained from focus group discus- sions represent group, not individual data personal interviews 1) advantages: useful for extensive, detailed prob- lng of attitudes, behaviors, motivations, or needs are required. 2) disadvantages: more expensive

What is the forecasted US growth over the net five years for the meal delivery kit industry?

grow by a factor of 10x over the next 5 years

What factors have contribute to its PLC stage?

if its a new product, the higher prices, and how much competition it has

Hello Fresh's main goal is to

increase the frequency of orders

What are the pros/cons of each?

interview pros: provides insight that quantitative can't, information from consumers own words, more flexible - can explore area's you haven't thought of, usually quicker and cheaper interview cons: can't generalize results because of such a small sample, can't report numeric results

How do the three areas of the brain we covered (limbic, reptilian and neocortex) relate to the type of information we are drawn to? What are the implications for advertising

limbic: reptilian: neocortex:

HelloFresh strengths

lowest calorie meals, have nutritionists working with chefs, easy to create,

Decline (PLC)

minimize time and effort to maintain market share

How does monitoring differ from listening?

monitoring: The practice of monitoring online conversations about a specific phrase, word, or brand. listening: The practice of actively listening to and seeking to understand online conversations about a specific phrase, word, or brand.

How many meal kit delivery services are there in the USA?

over 150

What's the difference between primary and secondary research?

primary: gathering your own data secondary: using the data already collected

What are the different ways we approach gaining insight?

quantitative and qualitative, interviews and surveys

What is a scanpath vs. heatmap vs. spotlight?

scanpath: order in which they looked (fixation) heatlamp: lets you see what areas were looked at the longest spotlight: area that is meant to be looked at the longest

When and why do we conduct qualitative/exploratory research?

to understand the meaning that things/ideas/experiences have for individuals from their own perspectives

HelloFresh weaknesses

too expensive, inconvenient, delivery times, too much packaging, result isn't what customers were expecting

Insights (Consumer Analysis)

• Mothers like teaching their young kids how to cook with the easily followed provided recipes. • Parents want less meat and more vegetables in their meals • People know how to cook and like to have provided recipes • People who want to learn to cook • Those looking to provide home cooked meal for their families • Working adults - with or without kids • Busy families who have no time to grocery shop • The provided services provide an alternative to a personal chef or takeout • The cost may be too expensive for some customers • Meal kit delivery has provided more family time (41)