Adelita O’Dell-‐Morrow 1
Smartwater / Coca-‐Cola
Bottled Water Brand New Product Research Concept
Adelita O’Dell-‐Morrow 2
Background Currently Generation Y market is the largest demographic market in America, and is predicted to become the largest spending power of America. Generation Y consists of approximately 95 million Millennials. In addition to the large population of Generation Y it is an important consumer segment for Smartwater to reseasrch because multiple secondary sources state that … •
Millennials are a demographic that must be marketed towards for any brand to keep the flow of spending o They are becoming the biggest spending power o Generation Y teens have a disposable income of $100 a week
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Millennials are influencing future generations o Many Millennials are developing into start-‐up families o 64% of new mothers are Millennials
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Millennials are concerned about the environment o 71% believe they will see environmental damage from global warming
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Millennials like socially desirable brands
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Millennials are more accepting than previous demographics
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Millennials like shopping for food that boost the immune system
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Millennials have a need for immediacy
In Addition to secondary research sources the I believe that it is important to market to Generation Y because of their… •
Current and future spending power
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Influence on peers and next generation of consumers: it is important to build brand loyalty
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Influence in environmental and health issues facing America
Adelita O’Dell-‐Morrow 3 Most importantly, the I think it is necessary for Smartwater to understand Generation Y’s needs and wants when it comes to bottled water. Understanding the needs and wants of Generation Y will be essential to gaining brand loyalty and attracting new consumers. It is also important to be up to date with Generation Y’s needs and wants seeing as many competitive companies are preforming this research and fighting for the same consumer segment. I propose to conduct a qualitative new product concept research study
Objectives The broad objectives of this research study are to: •
Understand the wants and needs of bottled water set by Generation Y so that Smartwater can determine the importance of creating products that cater to Generation Y.
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Identify the standards that Generation Y has about sustainability relating to bottled water. These findings will help to create opportunities that Smartwater can take in becoming more sustainable giving Smartwater a competitive advantage.
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Explore how to relate to Generation Y in order to better understand their world. These understandings of Generation Y’s environment will help Smartwater to better communicate with Millennials.
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Develop new insights on Generation Y that will help in further creation of Smartwater products and services.
Methodology Design To achieve the research objectives I will be conducting a modular research program consisting of the following phases: •
Conducting secondary research to better understand Generation Y demographics, psychographics, lifestyle, and attitudes
Adelita O’Dell-‐Morrow 4 •
Conduct a in person focus group with Generation Y participants at Columbia College Chicago
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Conduct one-‐on-‐one interviews
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Create a report measuring the findings and hypotheses created through execution of this plan
The chart below provides a layout of the research plan:
Secondary Research Review
Adelita O’Dell-‐Morrow 5 I will conduct a research report on the general information of Generation Y. National research databases will be used to collect secondary research from creditable sources. A secondary research review will allow Smartwater to gain a broad overview of topics such as: •
Market size
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Demographics
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Psychographics
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Income – Spending habits
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Attitudes
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Lifestyles
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Trends
The general purpose of a secondary research review is to help me better understand the segment that I will be researching. The results of the secondary research review will also be used to help determine appropriate research materials.
In Person Focus Group Objectives-‐ To better understand Generations Y’s relationship with sustainability, and new products created by Smartwater it is suggested that an in person focus group be conducted to collect information. •
Identifying Generation Y’s acceptance, need and want of sustainability – What are the beliefs Generation Y had about the topic and where are those beliefs coming from. In what ways is Generation Y truly practicing in sustainability everyday. What does this segment want for their future when it comes to being sustainable and the environment
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Gage the connection that Generation Y holds between sustainability and Smartwater currently – Come to understand where Generation Y rates Smartwater on the scale of sustainable compared to similar bottled water brands
Adelita O’Dell-‐Morrow 6 •
Explore Generation Y’s acceptance of a new sustainable Smartwater dispenser – What would this segment modify or change to go in a new direction.
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Understand if the a new Smartwater dispenser would fit the perceived role of Smartwater in Generation Y’s life – Would a new dispenser still meet the need and wants of Generation Y. How would a new sustainable dispenser affect Generation Y’s brand perception of Smartwater
Method-‐ To better gage the reactions and interactions of the respondents it is best to conduct an in person focus group discussion lasting 15 minuets occurring on one day. •
One group among Generation Y approximately 18-‐25 years of age
This focus group will include approximately 10-‐15 participants. All participants will be required to meet in person at Columbia College Chicago for half a day. In addition, •
Age, race, and gender are diverse
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Geographic coverage is limited to the Chicago land area: participates are in urban locations and time zones are not a factor
One-‐on-‐One Interview Objectives-‐ This phase will be used to better understand the personal relationship that Generation Y has with Smartwater. By conducting one-‐on-‐one interviews with participates it will help to create a detailed profile of Generation Y Smartwater consumers. The one-‐on-‐one interviews will touch on Generation Y traits learned from the secondary research review. •
Explore Generation Y’s need for individualism when purchasing beverages
Adelita O’Dell-‐Morrow 7 •
Evaluate the influence Generation Y feels they have on younger generations – does Generation Y make a conscious and/or unconscious effort to influence others
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Understand what products Generation Y desires
Method-‐ It is recommended to complete a total of three one-‐on-‐one interviews each lasting approximately 20 minutes. All three interviews will be conducted in one market, the Chicago land area. Interviews will take place in a location convenient to the participant. Homework-‐ Prior to the one-‐on-‐one interview each participant will be required complete one homework assignment, which will consist of two brainstorming activities. The activities will ask participants to… •
Draw a picture of how they perceive Smartwater products currently
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Draw a picture of what they believe the future of Smartwater products is
Adelita O’Dell-‐Morrow 8
Sample
Screening Criteria Specific screening criteria will be the following •
Participants are between the ages of 18-‐34
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Have consumed Smartwater in the past year
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Bought Smartwater previously
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Additional criteria will be added according to the findings in the secondary research review In Person Focus Group One Session / One Market
Chicago: Columbia College Chicago
Generation Y (18-‐25)
1 (Group)
One-on-One Interviews Three Interviews / One Market
Chicago
Generation Y (18-‐34)
3 (Interviews)
Adelita O’Dell-‐Morrow 9
Areas of Investigation Screener Screener: Smartwater SMARTWATER BOTTLED WATER FOCUS GROUPS RESPONDENT SPECIFICATION • All to be between the ages of 18-‐30 • A mix of genders • A mix of racial and ethnic groups • All to have purchased Smartwater on average 2x per month • None to have family members employed in the following industries: market research, marketing, advertising RECRUIT ONE (10-‐15) GROUP NOT SEGMENTED BY GENDER Screening questionnaire-‐ Smartwater focus group Name: _______________________________________________ Address: _____________________________________________ Day Phone: ___________________________________________ Evening Phone: ______________________________________ Fax: ___________________________________________________ E-‐mail: _______________________________________________ Part 1 – Initial Screening INTRODUCTION: Hello my name is Adelita Morrow from Columbia College Chicago. I am conducting a survey and would like to ask you a few questions. I am not trying to sell or advertise anything – my only purpose is find out your opinions. I am putting together a study on Smartwater. All of your responses during this conversation today will be kept confidential. 1. It has been observed that people who work in particular field may have different attitudes towards products than others. Because of this it is necessary for us to know where each income earner in your household works and what they do for that company. Where Work/Name of Type of Business Job Duties Company Respondent: _______________________________________________________________________ Spouse/Partner: _______________________________________________________________________ Teen: ______________________________________________________________________
Adelita O’Dell-‐Morrow 10 DO NOT RECRUIT ANYONE FROM THE FOLLOWING INDUSTRIES: • Market research • Marketing • Advertising 2. Which of the following age categories do you fall into? Under 18 Terminate 19 – 24 25 – 34 35 – 44 Terminate 45 – 50 Terminate Over 50 Terminate 3. Have you ever purchased Smartwater [ ] Yes [ ] No 4. Have you consumed Smartwater in the last year? [ ] Yes [ ] No (Terminate if answered “No” to both question 3 & 4) 5. May I collect your name, gender, and age First Name M / F Age **INVITATION** I would like to invite you to participate in a market research group discussion / one-‐ on-‐one interview. The session will last approximately 20 minutes. You may be selected to preform a small homework assignment before the discussion. You will receive the assignment via mail so lets take a moment to confirm your address. Thank you, for taking the time to participate in this survey today and I look forward to seeing you in the group/interview.
Adelita O’Dell-‐Morrow 11
Discussion Guide Discussion Guide: Smartwater Introduction I.
Welcome to this in-‐depth discussion about bottled water. I am glad to see that everyone was able to join us today.
II.
The objectives of this discussion today are the following… •
Identifying Generation Y’s acceptance, need and want of sustainability
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Gage the connection that Generation Y holds between sustainability and Smartwater currently
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Explore Generation Y’s acceptance of a new sustainable Smartwater dispenser
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Understand if the a new Smartwater dispenser would fit into Generation Y’s life
III.
The room is set up in a way today that we will all feel comfortable. Thank you for joining me
Category Usage •
Tell me about the bottled water you currently own/buy
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How often do you drink bottled water?
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How often do you purchase bottled water? What type of bottled water do you purchase – enhanced or plain? Why? If both why? When is each used?
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How important are brand names to you when purchasing bottled water? Why?
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Which brand do you usually choose when purchasing bottled water? Why?
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What role does bottled water play in your life?
Sustainability •
What does sustainable mean you?
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Are you accepting or not accepting of being sustainable? Why?
Adelita O’Dell-‐Morrow 12 •
What role does sustainably play in your life
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In your mind what is the relationship between bottled water and sustainability?
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Does sustainable packaging influence you purchasing habits of bottled water?
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What relationship do you believe Smartwater and sustainability have?
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What would you change about Smartwater to make it more sustainable? What is you logic behind that change?
New Idea (SHOW CONCEPT OF NEW SMARTWATER DISPENSER) •
How likely would you be to buy this product in the future? Why?
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What do you think of the new Smartwater dispenser?
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Does the new Smartwater dispenser strike you as a sustainable product? Why?
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Would the new Smartwater dispenser fit your lifestyle? How?
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What, if anything do you like about the new Smartwater dispenser?
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What if, anything do you not like about the new Smartwater dispenser?
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What would you change about the new Smartwater dispenser?
Adelita O’Dell-‐Morrow 13
Reporting Once all research steps have been fully completed and research findings analyzed a written report will be drafted in Word or PPT format. In the final report all key findings will be explained in detail and supported. The report will include (but not limited to): •
Executive Summary of key findings
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Secondary Research overview and key findings
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Qualitative Research overview and key findings
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Recommended measures for quantitative testing and strategic next steps
The final report will be presented in a sustainable manner so that the research findings will be available to all that need it for an extended period of time.