A few years back, in 1985,Experts was called by Parle Exports to assess the effectiveness of the advertising campaign of their three leading brands, Thums Up, Limca and Gold Spot. It was though that high recall is the correct measure of advertising effectiveness and marketing effectiveness and so, initially, experts task was to assess the number of consumers correctly recalling the ad campaigns of these brands. However, when experts interacted with the top management of the company, the brief was modified to include an assessment of positioning of the three brands in the target market and to suggest changes, if any, in their positioning. The research, done in the summer of 1985,concluded that Gold Spot’s positioning in the child market was weak. The brand’s positioning was confused with that of competitors. Also the child did not perceive the purchase and consumption of Gold Spot to be fun. Incidentally in 1985, the advertising campaign was aimed on positioning Gold Spot as a fun drink in the child market with the punch line To the child, fun was imitating his or her parents and elder brother and sister, who were the role models .Hence, riding a powerful mobike or roller coaster or dressing up like Dad or Mum were perceived to be exciting activities by the child. Based on these findings, Gold Spot was repositioned in the summer of 1986 and targeted to the adolescent market with the fun and excitement theme. The campaign’s punch line is now, the all famous gold Spot .The Zing Thing showing young college boys and girls in different situations-in a canteen, at a date, while swimming, etc .This strategy repositioning based on MR helped Gold Spot emerge as a winner in the Orange –flavored soft drink segment.
MR is, therefore a key to the evolution of successful marketing strategies and programs It is an important tool to study buyer behavior, changes in consumer life-style and consumption patterns, brand loyalty and also, forecast market changes .Research is also used to study competition and analyze the competitor product’s positioning and how to gain competitive advantage .Recently, MR is being used to help create and enhance brand equity .This is a new role and de3cidedly different from the conventional one where it was used for just studying buyer behavior of for conducting feasibility studies.
Following liberalization and decontrol, most firms today find that the government no more takes strategy decisions for them. MR playa an important role .Realising the contribution that MR makes, more and more companies are now turning towards it.
MR has failed rarely as in the case of Coca-Cola Corporation (US) in 1985.This was regarding New Coke to be launch and the research has shown customers where mostly favorable after the New Coke and with the new taste. The New Coke was launched based on MR results and failed within Six months from the date of launching
This is one of Cases were the MR have not given expected results. Besides, marketing research has often been de linked from the business strategy. When that happens, MR exercise a waste of resources .Often the researchers has the temptation to conclude what the top management may like to hear. For example, most chief executives and marketing chiefs would like to believe that everything about their operations is good .The researchers may find just the opposite. For example, he may find that the firm’s distribution plan and strategy is not competitive and channel members do not have faith in company’s policies.
Many a times the Marketing chief at the CEO given impressions to the researchers that everything is fine with their Operations and Future Strategies .But the Marketers Researchers may find contrary to this after Survey .However, the Researchers would not like to disclose the real picture simply because the Management may dislike his recommendation and may altogether not give him any more assignments.
Therefore to make MR effective, it is important that it has a linkage with business strategy and should respond to future or emerging scenarios in the market place.