UBC Sauder School of Business - Market Research

1. MARKETING
RESEARCH
PROJECT
Managing
the
Demands
of
Two
Segments
COMM
365,
Sec:on
102
Ideen
Toudeh
Fallah
18651117
Jessica
Greschner
2772107
Shayla
Hardy
41418104
Chenessa
Mok
25285107
Narissara
Su
52817103

2. Problem
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Design
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Data
Collec:on
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Analysis
&
Recommenda:ons
|
Follow-­‐Up

3. About
JRfm
Owned
by
the
Jim
PaUson
Broadcast
group
Only
FM
country
radio
sta:on
in
Vancouver
Music,
contests,
updates
on
latest
news
and
trends
Community
involvement
(FunFinder,
Ci:zenship
Ini:a:ves)
Maintains
a
strong
presence
in
social
media
Problem
|
Design
|
Sampling
Procedure
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Data
Collec:on
|
Analysis
&
Recommenda:ons
|
Follow-­‐Up

4. Understanding
the
Industry
#
Radio
StaHons
in
Canada
2012
Commercial
Radio
Revenue
Sources
#
of
Radio
StaHons
600
500
400
476
501
516
535
546
0%
0%
2%
300
200
31%
100
0
2008
2009
2010
2011
2012
Revenue
of
Commercial
Radio
in
Canada
67%
1.40
Revenue
(billions)
1.20
1.00
0.80
0.60
0.40
Local
Time
Sales
0.20
Na:onal
Time
Sales
Syndica:on
Government
Grants
Adver:ngs
&
Events
0.00
2008
2009
2010
2011
2012
Problem
|
Design
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Sampling
Procedure
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Data
Collec:on
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Analysis
&
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Follow-­‐Up

5. Understanding
the
Industry
GENERAL
USAGE
• In
2011,
the
average
person
listened
to
the
radio
for
app.
11
hours
per
week
• Music
accounts
for
5.5
hours,
News,
weather,
informa:on,
sports,
commercials,
etc.
account
for
the
other
5.5
hours
per
week.
COMPETITION
• Direct:
Other
FM
radio
sta:ons
in
Vancouver
• Indirect:
Satellite
radio,
mobile
apps,
MP3s,
and
websites
Problem
|
Design
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Sampling
Procedure
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Data
Collec:on
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Analysis
&
Recommenda:ons
|
Follow-­‐Up

6. JRfm
Listeners
E x p l o r a t o r y
R e s e a r c h
JRfm
Weekly
Listenership
–
Total
433,052
100,000
80,000
60,000
40,000
20,000
-­‐
12
to
17
18
to
24
25
to
34
35
to
44
45
to
54
54
to
64
65+
49%
Have
a
household
income
of
$75K+
31%
Have
a
household
income
of
$100K+
49%
Have
a
university
/
college
degree
50%
Are
married
58%
Own
their
home
29%
Have
children
living
at
home
67%
Dine
out
at
restaurants
monthly
61%
Order
take
out
food
monthly
52%
Drink
1+
cups
of
coffee
daily
48%
Drive
import
vehicles
40%
Drive
domes:c
vehicles
53%
Do
not
read
a
daily
newspaper
50%
Listen
to
JRfm
7-­‐28
hours
per
week
Age
of
Listeners
Problem
|
Design
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Sampling
Procedure
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Collec:on
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Analysis
&
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Follow-­‐Up

7. JRfm
Listeners
E x p l o r a t o r y
R e s e a r c h
ADULTS
18
-­‐
34
ADULTS
25
-­‐
54
Monday
-­‐
Friday
6:00am
–
10:00
am
127,891
264,253
Monday
-­‐
Friday
10:00am
–
3:00pm
205,869
416,920
Monday
-­‐
Friday
3:00pm
–
7:00pm
240,448
387,742
Monday
-­‐
Friday
7:00pm
–
12:00am
178,401
234,552
Weekends
207,120
401,320
(aggregated)
*
Insight
provided
by
JRfm
KEY
TAKEAWAYS:
The
25-­‐54
segment
listens
MORE
than
the
18-­‐34
segment
The
18-­‐34
segment
listens
the
most
from
3:00pm-­‐7:00pm
The
25-­‐54
segment
listens
most
from
10:00am-­‐3:00pm
Problem
|
Design
|
Sampling
Procedure
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Data
Collec:on
|
Analysis
&
Recommenda:ons
|
Follow-­‐Up

8. The
Rebranding
of
JRfm
E x p l o r a t o r y
R e s e a r c h
“OLD
COUNTRY”
“NEW
COUNTRY”
Tim
McGraw,
Alan
Jackson,
Brad
Paisley,
Garth
Brooks
and
Reba
Mcen:re
Carrie
Underwood,
Taylor
Swij,
Zac
Brown
Band,
Luke
Bryan
and
Jason
Aldean
Problem
|
Design
|
Sampling
Procedure
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Data
Collec:on
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Analysis
&
Recommenda:ons
|
Follow-­‐Up

9. The
Rebranding
of
JRfm
E x p l o r a t o r y
R e s e a r c h
While
JRfm
was
playing
more
“new
country”,
older
consumers
were
s:ll
reques:ng
“old
country”…
Play
more
“new
country”
(Poten'ally)
Lose
older
segments
Play
more
“old
country”
(Poten'ally)
Lose
younger
segments
THE
DILEMMA
JRfm
is
struggling
to
balance
the
requests
for
both
“new
country”
and
“old
country”
given
their
new
posi:oning.
Problem
|
Design
|
Sampling
Procedure
|
Data
Collec:on
|
Analysis
&
Recommenda:ons
|
Follow-­‐Up

10. Defining
ObjecHves
How
to
both
grow
and
maintain
JRfm’s
two
dominant
segments;
how
can
JRfm
best
accommodate
the
listeners
who
demand
“new
country”
and
those
who
demand
“old
country”.
RESEARCH
QUESTION
RESEARCH
PROBLEM
R e s e a r c h
P r o b l e m
&
R e s e a r c h
Q u e s : o n
Would
establishing
a
new,
partner
FM
radio
sta:on
be
successful
in
strengthening
both
segments
of
young
and
old
listeners,
therefore
proving
to
be
a
profitable
and
wise
endeavor
for
JRfm?
HYPOTHESIS:
If
JRfm
creates
a
sister
sta:on
that
caters
to
the
segments
preferring
“old
country”
they
will
be
able
to
grow
and
maintain
both
the
“new
country”
listeners,
and
the
“old
country”
listeners.
Problem
|
Design
|
Sampling
Procedure
|
Data
Collec:on
|
Analysis
&
Recommenda:ons
|
Follow-­‐Up

11. Research
Design
D e s c r i p : v e
S t u d y ,
S u r v e y ,
&
Q u e s : o n s
Gain
insight
on
listener
preferences
DESCRIPTIVE
RESEARCH
Bever
understand
aUtudes
towards
new
and
old
country
Paired
Comparisons
Customer
Survey
SURVEY
QUESTIONS
Constant
Sum
Scales
Likert
Scales
Problem
|
Design
|
Sampling
Procedure
|
Data
Collec:on
|
Analysis
&
Recommenda:ons
|
Follow-­‐Up

12. Research
Method
D e s c r i p : v e
S t u d y ,
S u r v e y ,
&
Q u e s : o n s
Secondary
Research…
Primary
Research…
• Survey
Type:
Self
Administered
Ques:onnaires
and
Mall
Intercepted
• Advantages
&
Disadvantages?
Problem
|
Design
|
Sampling
Procedure
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Data
Collec:on
|
Analysis
&
Recommenda:ons
|
Follow-­‐Up

13. Sampling
Method
P o p u l a : o n ,
C o l l e c : o n ,
M e t h o d
PopulaHon
of
Interest
• Individuals
who
have
listened
to
JRfm
before
• People
who
listen
to
country
music
Data
CollecHon
Method
• Survey
• Intercepted
at
two
JRfm
concerts
&
self-­‐administered
Sampling
Method
• Non-­‐probability
with
purposeful
randomness
• Time
&
resource
constraints
avributed
to
small
sample
size
Problem
|
Design
|
Sampling
Procedure
|
Data
Collec:on
|
Analysis
&
Recommenda:ons
|
Follow-­‐Up

14. Sampling
Method
S a m p l e
S i z e
SAMPLE
SIZE:
62
Under
19
20
–
24
25
-­‐
49
Over
50
Problem
|
Design
|
Sampling
Procedure
|
Data
Collec:on
|
Analysis
&
Recommenda:ons
|
Follow-­‐Up

15. Sampling
Method
S a m p l e
S i z e
SAMPLE
SIZE:
62
Under
19
20
–
24
TARGET
MARKET
“New
Country”
Listeners
25
-­‐
49
Over
50
LARGEST
MARKET
“Old
Country”
Listeners
Problem
|
Design
|
Sampling
Procedure
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Data
Collec:on
|
Analysis
&
Recommenda:ons
|
Follow-­‐Up

16. Data
CollecHon
H o w
W e
A c c e s s e d
o u r
P o p u l a : o n
CONCERT
#1
(Tim
Hicks)
CONCERT
#2
(Emmylou
Harris
&
Rodney
Crowell)
• Access
to
older
demographic
SOCIAL
MEDIA
(Facebook)
Survey
Sofware:
UBC
Qualtrics
• Access
to
younger
demographic
• Access
to
JRfm
fans
Problem
|
Design
|
Sampling
Procedure
|
Data
CollecHon
|
Analysis
&
Recommenda:ons
|
Follow-­‐Up

17. Analysis
Do
you
think
that
a
new
“old
country”
specific
radio
sta:on
would
be
successful
in
dealing
with
JRfm’s
dilemma?
Problem
|
Design
|
Sampling
Procedure
|
Data
Collec:on
|
Analysis
&
RecommendaHons
|
Follow-­‐Up

18. Analysis
V a l i d a : o n
&
E d i : n g
Surveyed
appropriate
target
audiences
Surveyed
relevant
popula:on
(JRfm
listeners)
All
ques:ons
in
the
survey
were
completed
Elimina:on
of
ques:on
that
was
difficult
to
answer
Problem
|
Design
|
Sampling
Procedure
|
Data
Collec:on
|
Analysis
&
RecommendaHons
|
Follow-­‐Up

19. Analysis
V a l i d a : o n
&
E d i : n g
Breakdown
of
Sample
by
Age
48%
50%
40%
49%
of
the
Sample
was
over
25
30%
20%
10%
10%
3%
2%
2%
3%
3%
30-­‐34
35-­‐39
40-­‐44
45-­‐49
11%
7%
11%
55-­‐59
60+
0%
15-­‐19
20-­‐24
25-­‐29
50-­‐54
Breakdown
of
JRfm
Audience
by
Age
25%
21%
18%
20%
17%
14%
15%
10%
10%
5%
15%
85%
of
the
Popula:on
is
over
25
5%
0%
12
to
17
18
to
24
25
to
34
35
to
44
45
to
54
54
to
64
65+
Problem
|
Design
|
Sampling
Procedure
|
Data
Collec:on
|
Analysis
&
RecommendaHons
|
Follow-­‐Up

20. Analysis
C a n
T h e y
H e a r
t h e
D i ff e r e n c e ?
SorHng
“New”
&
“Old”
Country
ArHsts
100%
90%
80%
70%
60%
50%
Old
Country
40%
New
Country
30%
20%
10%
0%
Taylor
Swij
Carrie
Lee
Brice
Underwood
“New
Country”
Hunter
Hayes
Brooks
&
Chris
Cagel
Toby
Keith
Tim
McGraw
Dunn
Garth
Brooks
“Old
Country”
Problem
|
Design
|
Sampling
Procedure
|
Data
Collec:on
|
Analysis
&
RecommendaHons
|
Follow-­‐Up

21. Analysis
W h a t
d o
t h e y
P r e f e r ?
Do
You
Prefer
“New”
or
“Old”
Country?
70%
of
survey
respondents
also
New
Country
29%
noted
that
they
like
listening
to
a
mix
and
new
and
old
country!
No
Preference
47%
Old
Country
24%
Problem
|
Design
|
Sampling
Procedure
|
Data
Collec:on
|
Analysis
&
RecommendaHons
|
Follow-­‐Up

22. Analysis
W h a t
d o
t h e y
P r e f e r ?
Which
StaHon
Would
You
Choose
Based
on
Song
Line
Up?
50%
44%
40%
“New
Country”
30%
20%
KEY
INSIGHT
31%
“Old
Country”
15%
10%
10%
0%
Blake
Shelton,
Lee
Brive,
Gary
Allan,Brad
Paisley,
Florida
Georgia
Line
Brooks
&
Dunn
A
Combina:on
of
Both
Neither
Problem
|
Design
|
Sampling
Procedure
|
Data
Collec:on
|
Analysis
&
RecommendaHons
|
Follow-­‐Up

23. Analysis
W h a t
d o
t h e y
P r e f e r ?
Key
Insight:
Although
the
popula:on
indicates
they
like
a
mix
of
”new”
and
“old”
country,
it
is
evident
that
more
young
people
like
“new
country”,
and
more
old
(er)
people
like
“old
country”
Problem
|
Design
|
Sampling
Procedure
|
Data
Collec:on
|
Analysis
&
RecommendaHons
|
Follow-­‐Up

24. Cost
Benefit
Analysis
Survey:
59
respondents,
154
total
tune-­‐in
occasions
Avg.
Daily
Occasions
Avg.
Daily
Listeners
Avg.
Daily
Tune
Ins
Avg.
Monthly
Tune
Ins
2.6
500,500
192,500
14,014,000
Spot
Revenue
(JRfm)
2012:
$565,501
Avg.
Daily
Occasions
Tune-­‐In
Value
Avg.
Daily
Listener
ContribuHon
2.6
$0.04
$0.10
Problem
|
Design
|
Sampling
Procedure
|
Data
Collec:on
|
Analysis
&
RecommendaHons
|
Follow-­‐Up

25. Cost
Benefit
Analysis
L i s t e n e r
R e v e n u e s
25%
of
listeners
preferred
“old
country”
Avg.
Daily
Occasions
Avg.
Daily
Customers
Avg.
Daily
Tune
Ins
Avg.
Monthly
Tune
Ins
2.6
48,125
125,125
3,503,500
JRfm
opera:ng
cost
(2012):
$245,050
Tune-­‐In
Value
Avg.
Daily
Listener
ContribuHon
Avg.
Annual
Listener
ContribuHon
(P6+,
Full
Week)
-­‐$0.07
-­‐$0.18
-­‐$65.47
Problem
|
Design
|
Sampling
Procedure
|
Data
Collec:on
|
Analysis
&
RecommendaHons
|
Follow-­‐Up

26. Cost
Benefit
Analysis
Tune-­‐In
Value
$0.04
-­‐$0.07
Avg.
Daily
Listener
ContribuHon
$0.10
-­‐$0.18
Avg.
Annual
Listener
ContribuHon
$37.77
-­‐$65.47
Cost
per
listener
is
much
higher
than
contribu:on
per
listener
Total
loss
of
-­‐$103,674
for
new
sta:on
based
on
expected
listener
count
Considered
other
sources
of
revenue
Limited
promise
in
growth
Problem
|
Design
|
Sampling
Procedure
|
Data
Collec:on
|
Analysis
&
RecommendaHons
|
Follow-­‐Up

27. RecommendaHons
C o n c l u s i o n
CONCLUSION
RECOMMENDATION
• Making
a
separate
radio
sta:on
that
played
only
old
country
would
be
a
bad
idea!
Why?
• JRfm
needs
to
play
and
endorse
a
mix
of
“new
country”
and
“old
country”
to
best
suit
their
listeners
preferences
• Listeners
prefer
a
mix
of
“new
country”
and
“old
country”
• The
costs
are
greater
than
the
gains
Problem
|
Design
|
Sampling
Procedure
|
Data
Collec:on
|
Analysis
&
RecommendaHons
|
Follow-­‐Up

28. RecommendaHons
C o n c l u s i o n
Open
up
a
new
sta:on
just
for
“old
country”
Instead,
maybe
introduce
“Saddleback
Hour”
• An
hour
of
just
“old”
country
music
played
when
most
“old”
country
listeners
tune-­‐in
• This
will
reaffirm
the
presence
of
“old
country”
in
the
newly
rebranded
JRfm
Problem
|
Design
|
Sampling
Procedure
|
Data
Collec:on
|
Analysis
&
RecommendaHons
|
Follow-­‐Up

29. RecommendaHons
C o n c l u s i o n
Those
Under
24:
Those
Over
35:
• Most
popular
tune-­‐in
:me:
• Most
popular
tune-­‐in
:me:
5:00am
to
10:00am
10:00am
to
3:00pm
Therefore
since
JRfm
listeners
want
both
“new”
and
“old”
we
recommend
“Saddleback
Hour”,
an
hour
of
“old”
country
music
to
be
played
between
10:00am
and
3:00pm
when
more
people
who
prefer
“old”
country
music
tune-­‐in
Problem
|
Design
|
Sampling
Procedure
|
Data
Collec:on
|
Analysis
&
RecommendaHons
|
Follow-­‐Up

30. Plan
for
Follow-­‐Up
N o w
t h a t
R e s e a r c h
i s
D o n e …
PRESENT
MONITOR
MORE
RESEARCH
• Present
our
recommenda:on
of
not
opening
up
a
new
sta:on
• Suggest
con:nuous
monitoring
of
the
preferences
of
different
segments
• Suggest
that
a
similar
survey
is
conducted
again
in
2
years
Problem
|
Design
|
Sampling
Procedure
|
Data
Collec:on
|
Analysis
&
Recommenda:ons
|
Follow-­‐Up

31. THANKS
FOR
LISTENING!
Any
Ques:ons?
Problem
|
Design
|
Sampling
Procedure
|
Data
Collec:on
|
Analysis
&
RecommendaHons
|
Follow-­‐Up