Some Phase I Guidance

Update: Got this comment which I replied to in an older post but IMHO it bears wider dissemination.
Rajesh writes:

Dear Professor

The explanation of the situation in which the management (XYZ corp)currently is appears very short in the project scope document.
Is the XYZ corp trying to figure out whether to enter into various segment like banking/finance/Insurance which will be available to it post the new license policy or these sectors are just some of the options among others like real estate? Further if the answer to the above question is only the banking/Finance/insurance, then is the management also looking at mapping asset sub classes which it should offer to the target segment ( Retirement planning).

I respond:

Hi Rajesh,

Thanks for the feedback.

XYZ can enter into a variety of sectors based on the current distribution of preferences among *broad* asset classes in the target population. There are some asset classes such as Gold, where XYZ can't do much but the info would be good to know that such % is gunning for Gold.

XYZ can enter the property sector not to compete with DLF or anything but perhaps in housing finance, if housing is seen as sufficiently attractive for a good % of the target population.

Point being that a lot of asset sub-class level detail would probably not be required for this study. XYZ will need to commission follow-up detailed studies if this one throws up interesting opportunities.

Warning: Longish post - but worthwhile read, IMHO.

Hi All,

There've been some queries that might be more widely shared by the class at large. Let me use this post to try to answer some.
Vikram writes:

Sir,

We were discussing the project and have a query:
We want the consumer's requirement at retirement.
But we would also need to present him with the investment he needs to make corresponding to a return.
Will we get information about premiums we can use for this purpose ?

My response:

Hi Vikram,

Kindly look at the comments section of this thread

http://marketing-yogi.blogspot.com/2010/10/phase-i-submissions.html

Maybe some idea of what I have in mind might emerge. In any case, you don’t have to buy into my ideas on this one and can choose to go your own route.
I shall address your post separately and then postthe same on the blog.

Going forward, I'd rather questions of a general nature be taken to the blog (a response is guaranteed within a few hours at most!) where the entire class can access, share and benefit from the same.

In general, I've avoided giving much 'guidance' on the project for fear of biasing your natural thought processes and responses to the scope document. So let me stress, my ideas aren't necessarily the only 'right' approach to this problem. If your approach differs, fine.

People, please lookup the comments sections to different posts for relevant Q&A. Pls use the comments section for follow-up Q&A. Let me first quote what I wrote in the comments section of 1 post below:

Respondents may be unable or unwilling to answer certain questions.

In such cases, we tone down the info content of the questions. For example, instead of asking folks to reveal their household incomes, we ask merely that they pick this off a list of ranges.

Similarly, IMO, since we are interested in the distribution of preferences across asset classes, a rough, relative measure of such allocation might suffice. E.g., "Out of 100% that I put into longterm savings and investments, I'd ideally go with 15% in equities, 15% in a private provident fund, 40% EMI on house loans, and the rest in bank FDs".

IMHO, respondents will hopefully give a true picture, on average, of such allocations. Down the line somewhere, one might casually inquire into current income p.m. range and % of that put into longterm savings.

Again, this is entirely my static view and you needn't follow it 100%. Based on your evolving plan, go with what you think is best for phase I.

Let me add to this now. Think from the Client's perspective also. The client is interested in a known-unknown  - the broad range of asset classes currently (and prospectively) finding favor with the target population, and the current state of awareness and attitude among the target population towards these alternatives.

Some folks may not even have thought about retirements and longterm savings. What is the % of such people in the target population? What markers - demographic or psychographic -  may distinguish them from other folks?

Then again, some other folks may have thought deeply about this issue and planned their retirements in some detail. What is the % of such folks, their motivations, background, Identification markers, and importantly, their current portfolio like?

Some people would be in-between the two extremes above. How amenable are they to the message that retirement planning is important? How best to reach them via media exposure?

In general, how do people view investments such as property, gold, stocks, etc? Long term savings-vehicles?  Inflation hedges? Retirement income sources? I don't know what else you may come up with. These things I am thinking up as I type.

Even more generally, what factors affect the awareness, attitudes, ideas and actions of people vis-a-vis the issue at hand? Is it their age, their stage in the life-cycle, their family size - # children, their employment type, peers and social circle, the influence their parents' choices in this regard had on them, opportunities at hand, etc etc.

If you want to use standard Marketing frameworks you have learnt elsewhere here, be my guest. For instance, I can think of the AIDA framework in Kotler that could be gainfully applied. AIDA stands for 'Awareness-Intention-Decision-Action' and measures where potential consumers are on this continuum vis-a-vis a particular product.Erratum: 'Decision' was previously incorrectly IDed as 'desire'

All these things may or maynot figure in your design of the questionnaire. All of them probably cannot be accommodated anyway in the spacetime constraints we are operating under. This then, is the challenge for you, the call you have to make.

The 15+ person-hours (at least, I expect) your group spends on the questionnaire design should be great leaning in the process of satisficing competing demands and requirements, optimizing available resources within set constraints and all in the framework of a complex issue at hand. This is the real learning the course hopes to impart - the bookish gyan is always there anyway.

Chalo. The post is long enough already. I should stop. Pls feel free to use the comments section for follow-up Q&A, feedback, critique and discussion

Sudhir

P.S. Also meant to mention some best practices from last year that came into handy. Some groups modularized the questionnaire and had subgroups of 2-3 work on separate modules. Apart from the efficiency of parallel-processing that this mechanism gave them, an added advantage was that one subgroup could pre-test the others' modules. Am not sure if this will work for your particular group or not, but something to consider.
Also, let me once again, strongly urge groups to setup and use free Wikis to coordinate activities across time and distance. Pls see the relevant blogpost below for the link to Wiki creation.