Instructions: No summary need For each cases 1-Give 3 issues from the article the issues must be state as a marketing focus they must be state as question. One marketing concepts for each issue statement. Avoid general question 2-analyse: apply the marketing concepts, show understanding of the marketing concepts used for each concept one paragraph of each. Prove expertise in marketing. The emphasis should be on describing what know about the marketing concepts and applying the marketing concepts to the specific case dealing with. Organize the analysis aground each issue. Support points with evidence from the case. Do not use other company to explain the marketing concept use the company in the case. 3- recommendation: respond the questions of issues for each issues statement. Recommendation should solve the issues and should make sense given the analysis. Be sepecific in the recommendation. It should be clear what the protagonist in the case should do. Reference: A RISK VERSUS REWARD APPROACH TO MARKET RESEARCH In October 2018, just a few months into his new role as head of consumer insights at King's Hawaiian Bakery, West Inc. (King's Hawaiian) in Torrance, California, Troy Figgins was looking for a way to help the company identify new and consistent business growth. The company had enjoyed steady growth over the past decade, but it had done so without building a strong market research function to uncover consumer needs. As a result, it had taken a few risks with new products, which had not performed as well as expected. Figgins, who joined the company in August 2018, had been brought on board to build an insights capability within King's Hawaiian. He had to think long and hard about what that department would look like and what tools he could include. Should he build a team of insights experts, or should he partner with some of the best-in-class marketing research agencies in the world? KING'S HAWAIIAN: A LEGACY OF BAKING. In the late 1900s, before King's Hawaiian bread existed, sweet bread came to Hawaii as Portuguese sweet bread, brought by Portuguese immigrants, who were accustomed to making a sweet bread traditionally served at holidays such as Christmas and Easter and who brought their recipes with them to Hawaii.! Robert Tara, an immigrant from Japan, started King's Hawaiian, under the name Robert's Bakery, in the 1950s in Hilo, Hawaii. He was passionate about the business, and as a result of his dedicated hard work and time, the company grew from a single bakery on the Big Island of Hawaii to one of the largest national bread brands in the United States. The company moved to Honolulu in 1963 and expanded to the mainland United States by opening King's Hawaiian Bakery in Torrance, California, in 1977. King's Hawaiian had 578 employees across the company. King's Hawaiian bread fell within the consumer packaged goods (PG) industry, in the bread category. The three key segments in the bread category-mainstream, private label, and premium-included specialty brands and direct store-delivery brands, whose products were delivered by brand company trucks to the stores. King's Hawaiian products were part of the premium (specialty) category. In July 2021, King's Hawaiian had a 51.9 per cent repeat rate among buyers, a household penetration of 38.9 per cent, and a purchase frequency of 2.9 per cent.? The company appeared to be more focused on increasing its existing buyers' purchases of King's Hawaiian products than on acquiring new buyers. 127 Q Search specifically Frito-Lay, is an amazing company and extremely performance-driven, with powerful brands. And at Frito, we talked about being trailblazers and being open to trying new things, but being a public company made that challenging." He added, "It's about having to deliver the quarter, and so, you don't always have the luxury to try new things. MANY LOAVES AND DECADES LATER "In the summer of 2018," Figgins shared, "Mark Taira, CEO [chief executive officer] of King's Hawaiian and the son of the founder, asked me to join King's Hawaiian and build out the insights capabilities of the company. And this was very new to King's Hawaiian." He continued, Prior to now, they [King's Hawaiian] didn't have to rely heavily on data-driven insights. They werea seventy-year-old compan;, but over the last ten years they had ridiculous growth. They have this killer product- the dinner rolls. They grew hand over fist. Strong distribution, driving recognition, driving awareness, driving trial. But they did very little product testing. They did no market research Had no insights. So, they [King's Hawaiian] were coming off of this very "gut feel" way of doing things. You know, they made a few mistakes along the way- especially in new products. And Mark realized that they needed better insights, especially as the company was expanding into new categories, new occasions, and new parts of the store. NEED FOR TRANSFORMATIVE INSIGHTS Mark Taira had come through loud and clear in sharing his vision of what consumer insights should look like. And as Figgins reflected, "Mark liked to get his hands dirty; he liked to get in there and do the work, which meant he loved to work with his hands." That said, Figgins had been given some clear direction on the expectations for consumer insights at King's Hawaiian. Insights should involve (1) frequent, agile research; (2) quick, directional understanding; (3) cost-effective, do-it-yourself (DIY) solutions; and (4) quick-turn insights. King's Hawaiian didn't need traditional research or one big attitude and usage (A&U) marketing research study per year. What it really needed was more frequent research with a lot of touch points. Figgins and his colleagues had to be nimble when it came to insights, which meant that they wanted to come up with a question (or several questions) and get answers right away. Instead of striving for 100 per cent accuracy in their new product research, their focus seemed to be more directional and to strive for 80 per cent. They did not want expensive off-the-shelf programs but, rather, preferred more DIY market research. Taira stressed that he was not going to dictate to Figgins how he should build an insights capability: how Figgins delivered it was entirely up to him. Figgins wanted to thoroughly evaluate the opportunities for creating this capability, including pros and cons of the options, to determine how best to create it and what tools he would need to include. CONSUMER INSIGHTS AND THE CPG INDUSTRY While the key terms consumer insights and market research were often were used interchangeably and were sometimes related, consumer insights referred to findings from data, and market research referred to data only. Consumer insights and market research were critical assets in building and managing the businesses, individual brands, and brands categories in PG (and other) companies. There were two key paths to doing research: primary and secondary. Primary research involved designing and collecting data first-hand, with specific learning goals in mind. The researcher was actively involved in the research, and research methods included surveys, interviews, observations, data analyses, and focus groups. Secondary research relied on information that was already available, including information in databases, publications, and other sources. The researcher conducting secondary research used and analyzed previously created primary research.3 Companies' departments, including marketing, finance, supply chain, and product devetopment, worked together to develop annual and shorter-term plans. However, one department, which was connected to all of the above and was essential to the business, was consumer insights, also known as market research. Market research was essential to ensuring that an organization was meeting the needs of the market. In addition to providing a deeper understanding of a company's customers, market research helped companies avoid costly mistakes. Introducing products with little or no market potential to the marketplace often resulted in market failure. As Harvard Business School professor Clay Christensen stated, 95 per cent of all new product launches failed. To succeed, a new product needed to make it to the top 5 per cent of all new products researched, tested, and launched in a category. According to the marketing research association Esomar BV, in a given year approximately US$45 billion Was spent on market research." The majority of these resources was spent contracting full-service vendors and agencies. Knowing this, Figgins understood that his marketing research budget should be a percentage of the company's revenue. It was further reported that companies in the CPG industry usually spent 3-5 per cent of their annual revenue on market research, compared to the 5-10 per cent of annual revenue they usually spent on product development research. In today's market, insights were often the beginning of the process of gaining key learning across the business. The general marketing research process involved multidisciplinary teams, which collaborated to prioritize their business needs and opportunities. Budgets were then developed to launch the insights, or research, which would cover areas including but not limited to consumer behaviour, product concept testing, package testing, competitive learning, and market testing. Consumer insights research fell into two categories: qualitative research and quantitative research, both of which could be used in short-term or long-term research, with various budgets. Qualitative research was more likely to provide "directional" learning, with no quantifiable answer or result. Quantitative research provided actual answers with measurable, statistical data. A strong PG company] would combine qualitative and quantitative research to get robust, actionable learning through a wide range of tools. Research included tools like online surveys (which made up almost 80 per cent of total quantitative research work) as wellas face-to-face and phone interviews. The types of research used sometimes varied depending on geography, with some methodologies being more popular in one area than another. Regarding qualitative research, in-person focus groups were the most common method and made up more than half of research conducted in 2018. INSIGHTS OPTIONS UNDER CONSIDERATION Figgins knew that building insights for the company would need to include a way to access the right consumers, using both qualitative and quantitative research methodologies. He spent time evaluating three specific options he could pursue: Hire and Develop Marketing Research Experts to Build an Internal Insights Department Figgins wondered what would happen if he cut out the intermediaries and did the research himself. He knew that doing his own research (DIY) would be much cheaper and faster. But would it be difficult? Would he have help from people in other departments, like marketing? Did the company have the necessary technology for a range of online research tools? This could possibly imply more costs, more time, and more people. Figgins would need to hire marketing research professionals. But how many would he need to hire, and at what level? Based on current industry norms, Figgins knew he would need to pay roughly $65,000 per person. In addition, Figgins would need to provide the team with the necessary tools to conduct research. He would need to buy a subscription to a DIY market research platform such as Survey Monkey or Qualtrics. Subscriptions to such DIY platforms typically cost $4,000 per year. There were other costs to consider, including an analytics statistical software package (e.g., SPSS, Excel, or another), as well as costs to procure a sample list. Beth Howard, the head of business development of Kantar Marketplace (Kantar), shared in a blog post, Commissioning market research is a lot like remodeling your bathroom. An odd comparison perhaps, but here's why Before starting a bathroom project, you're faced with a decision: Do you do the work yourself, or hire a skilled contractor? The answer would depend on several factors, including the amount of time you had, your budget, as well as your (honest) assessment of your own practical skills. Determining whether DIY market research is right for you requires a similar calculation but, fortunately, the final decision is not all or none. You can say yes to both DIY and managed research, using each in different circumstances. Figgins had been at King's Hawaiian a few months and was getting a sense for the business. He estimated that he could start by adding two market research professionals (at $65,000 each) for the first year. In addition, he knew he would have costs to subscribe to a supplier like Qualtrics or SurveyMonkey, which could provide surveys that would be fairly quick, reasonably priced, and easy to execute and analyze. The two marketing people Figgins would hire would likely have similar levels of experience. He planned to give each of them a distinct role in the organization to enable them to provide the best breadth and depth of work, which would go on even simultaneously if needed. He felt he could give one person responsibility for qualitative research and the other responsibility for quantitative research, or he could ask each to focus on a particular area, such as new product innovations or brand partnerships, to enhance the King's Hawaiian brand (for example, by partnering with NASCAR). Partner with a Full-Service Marketing Research Agency This option would involve interviewing and selecting a full-service agency with experience and capability across a wide range of strategies and tools. The research projects would be designed for specific purposes and designed specifically for King's Hawaiian. This research would include one-off (i.e., ad hoc) studies as well as continuous tracking studies. Hiring a market research company was part of the market research process. In Figgins's experience, this was normally done after a company had identified a business problem and written a research brief. In this scenario, Figgins had the option of working with one or several agencies. He knew he could work with some agencies for specific projects and have ongoing relationships with others, who could manage many projects (e.g., a department tracker, a re-branding, or a repositioning requiring multiple phases of research). some of which would be sequential. There was a clear relational aspect to working with a market research company. While ad hoc in nature, market research was usually an ongoing process. If Figgins found a researcher who understood the King's Hawaiian business, he would most likely stick with this researcher to form a long-term lasting relationship. The agency would build up a bank of knowledge about the King's Hawaiian customers, and Figgins would trust its expertise and way of working. Custom marketing research agencies- especially the larger firms such as Kantar or Ipsos Worldwide typically put larger teams on research projects. That said, Figgins would have project managers, expert Figgins hired the firm to do. These bigger teams also typically moved more slowly. It would take longer to make decisions. King's Hawaiian would also be one of many clients for such a firm a small fish in a large pond, so to speak. If Figgins's research spend was not significant for that firm, he might struggle to get consistency in the team who managed his research. The larger companies also tended to have a higher staff turnover, so Figgins could lose some of the personal contact he might have had with smaller market research companies. The cost associated with partnering with a full-service marketing research agency would vary based on the research scope, methodology, and expected deliverables. The costs might be high, but the nature of the insights gained from a custom market study could be substantial. Custom reports would be designed to provide the specific answers to Figgins's questions, so the intelligence (or insights) he would receive would be extensive and detailed. However, Figgins knew he was looking at a timeline of at least two months from the project kick-off."' Figgins knew from his time at PepsiCo that the average cost of a custom project was roughly $18,000. This option might be too rigid and too expensive for Figgins to consider. Develop a Proprietary Marketing Research Online Community (MROC) The third option was for Figgins to establish an MROC. MROCs helped companies by engaging with consumers on an ongoing basis. An MROC would enable King's Hawaiian to fully understand the mindset of its target market and to identify any key issues, challenges, or opportunities that King's Hawaiian could explore