1) Distinguish between quantitative and qualitative market research. Which method did Innocent use at the music festival? [4]
Excellent responses to this question. Well done.
2) Assess whether a more in depth approach to market research would have been appropriate before launching Innocent Drinks. [10]
Definition: All of you provided a detailed and accurate definition. How will you remember these definitions for the exam?
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A more in depth or qualitative approach to market research would have been more appropriate for Innocent Drinks because of the obvious bias in asking peoples opinion at a music festival. People attending music festivals are not a true reflection of the population as a whole. This is important because the implications of giving up well paid jobs to start the business could be wide ranging for the Innocent Drinks entrepreneurs. The entire project may have failed if their recipes or pricing points were not acceptable with consumers.
As mothers are likely to be a targeted market segment it would have been appropriate to hold some focus group sessions to gather opinions about the smoothies, packaging and possible prices. This is important because business start ups are likely to have limited finances and cannot afford to waste money on unused or unsold stock. Although there would be an initial expense with holding a focus group, in the long run they will benefit from producing a product which will hopefully be in demand in the market place.
On the other hand, by taking the decision at the music festival using simple quantitative research the entrepreneurs were able to enter the market quickly. This was important because first mover advantage is a powerful advantage in business. The entrepreneurs were able to build a brand and become established in the minds of the consumer. This is important because it can lead to customer loyalty and repeat purchases. Also by relying on this simple research and launching the product it made it much more difficult for rival firms to enter the market. This was important because......
