Preliminary Market Research Report for Katz Electrical Ltd

We have completed our market research on testing consumer reaction to your brands, and attach a statistical analysis of the research results. This preliminary report is a summary of our findings, conclusions, and suggestions, which you might like to discuss with us after you have considered the results.

Our survey was based on discussions by a number of focus groups of users and non-users of your products. These were moderated by a psychologist. Using the results of the discussions, we constructed a questionnaire which was presented to a random sample of 500 people reflecting the population distribution of this country. We asked them about their preferences and awareness of your products compared to others on the market, and from this usage and attitude study we produced a profile of your brands compared to those of other companies.

The lists attached show the statistical breakdown in answers to our questions. In summary, they suggest the following:

1.Although your products are stocked in leading stores and your name is well-known, there is a feeling that, in spite of their reliability, they are over-priced and old-fashioned. The 15-25 age group associate your brands with appliances used by their parents, and the 25-35 age group associate your brands with the 1980s.

2.Your name featured very low on the list when people were asked to name a brand of electric fire, vacuum cleaner, iron, and refrigerator. You will see from the attached survey that less than 10% of the sample had heard of your most recent product, the 'Popup' toaster.

We believe that poor marketing is the main reason for the old-fashioned image people have of you products. Also, there is a lack of brand identification, which we are sure can be overcome with a well-planned advertising campaign. We suggest the following action points:

1.Establish a symbol that will be identified with all your products. The most obvious appears to be a cat, a domestic animal for domestic products, which is also associated with your name.

2.Your current advertisements give the impression of functionalism. We suggest glamorizing the ads, maybe with an exotic cat which will always be recognized when seen.

3.Improve the packaging of the products, perhaps by using more fashionable colours and a symbol.

4.Improve the targeting of your advertising campaigns. For example, it would be better to concentrate on women's magazines rather than national newspapers.

If, after studying the enclosed information, you are interested in attending a presentation in which we would be able to illustrate these ideas more fully, please let us know. I am confident that if we handled your account we could improve your sales significantly.