Tag Archives: Market Research

How is ‘Design Thinking’ different?

“How is design thinking different from process re-engineering or business consulting?”
BusinessWeek’s Bruce Nussbaum responds in this video (damn thing refused to embed in WordPress!).

I think this answer does help in understanding the differences for the-already-informed, those who at least have bare minimum understanding or awareness about ‘design thinking’ (or similar topics), but it is unlikely to address questions of those who are completely new to it.

In my work, as I talk to several clients in the Indian industry, I see a huge need for simplifying and demystifying these terminologies and communicating them in a much simpler, yet emphatic manner.

These are some of the typical questions I’ve been asked quite often:

  • “So, you do market research?”
  • “My sales team (especially in FMCG companies) are already out there in the field and are meeting customers on a day-to-day basis and observing them. How is this different from that?”
  • “What do you guys finally give us (deliverables)?”
  • “How can you study just 10-20 people and make conclusions about users across the entire country?”
  • “Can you make this process more objective?”
  • “Users don’t know what they want. There’s no point asking them.” (This one is a classic)!

Having said that, (thankfully) there are those clients who’re much more aware, open and even very excited about “alternative” ways of approaching the same old business problems. In fact, when I tell them I don’t do focus groups, some of them actually look relieved! 😉

Advertisements

Facebook and pedigree

The Nielsen Company has published this report (via Plugged.in) on the usage patterns of online social networking trends in India. Excerpts:

The Nielsen Company recently conducted a survey in India using its online research panel “Your Voice” on the usage patterns of Social Networking websites and found keeping in touch with people they know to be the strongest reason for joining a social networking site for the vast majority of Indian respondents (82%). The Nielsen survey also found over half (58%) joined a social networking site to reconnect with old acquaintances they have lost touch with, and to make new friends (53%). Professional networking was a strong fourth for 43%.

And…

Security reasons were cited by 68 percent of the respondents for using alternate identities on sites. They prefer not to reveal their personal details. 35 percent chose to use an alternate identity “Just for fun”.

What (especially) didn’t work for me about this study…

The survey was conducted amongst 301 people across various age groups starting from 15 years onwards.

When one is drawing usage patterns in online social networking in India, would a sample size of 301 suffice? Sounds rather strange.

Anyways, here’s another interesting observation (about the competition in the social networking space in India) from a cover story about Facebook (registered users only) in India’s leading weekly magazine, Outlook:

Facebook, on the other hand, has a whiff of pedigree, privilege and exclusivity about it, since it was founded by Harvard student Mark Zuckerberg and was originally restricted to students of Harvard and other Ivy League colleges; an impression strongly reinforced when a study last year concluded that Facebook users tended to be better-educated and wealthier than those on other networking sites. That Facebook comprises a well-heeled crowd that freely shares its consumer tastes means that even if its numbers don’t quite match Orkut’s, it’s by far the most sought-after hunting ground for market researchers and targeted advertising.

Experientially, I’d agree with this strong generalization (about “whiff of pedigree, privilege and exclusivity”). But, I wonder if the origins of Facebook really have much to do with the kind of people who populate the site? I can understand that being an influencer in the US, where it all started, but would that trend spread to far flung countries like India as well?

Event report (Understanding the Logic of Consumer India)

Here’s my post-event summarization & ramblings on last week’s TiE event, Understanding the Logic of Consumer India:

But, before that, a random observation during tea-break: Majority of the glasses that were used for drinking water, had around 20% of drinking water remaining in each of the glasses (sorry, wasn’t carrying my camera with me that day)! On the sustainability side, that’s around 20% of the drinking water that the five-star hotel buys going to a waste. And on the business side, the hotel is spending 20% more than they should be!

Anyways, onto the event notes:

  • Thankfully it wasn’t a powerpoint-presentation oriented event. It was an informal, open discussion facilitated by Vinita Bali. The topics that were discussed ranged from…predictable questions like, why she wrote the book, “We’re like that only!”…to interesting debates around…do businesses (especially entrepreneurs, given the fact it was a TiE event) really need to understand what their consumers’ needs are before going-to-market (this question did become a strong point of discussion among several in the audience)…to how do you know whether “that” is really the consumer’s need…to how one should spend time observing consumers at the point-of-sale/usage…to whether Reliance has got their retail business model correct or not (?), etc.
  • Scarcity & Abundance: I forget whether it was Vinita or Rama who made a very subtle, yet powerful & interesting point about how Indians are fundamentally oriented towards (or come from) scarcity rather than abundance. The context to this discussion was around the need for competition in the market, without which a business can pretty much do whatever it wishes (without taking into account consumers’ needs) and many times, get away with it.
    Vinita/Rama made the point that Indians have traditionally been shy of competition because there is a tendency to believe that, if there is competition, then one’s share of the pie is at stake. And that comes from the cultural background where Indians are so oriented towards scarcity rather than abundance…meaning, there’s this nagging worry/feeling that…what’s there, isn’t enough for everyone.
  • Do businesses really need to understand consumer’s needs: A question was put forth about why businesses don’t want to, don’t like to spend too much time/effort/money on understanding the consumer’s needs. Several people had varied (also, weird) responses to that.
    My take (or hypothesis):

    1. Most of the folks who run businesses are usually the left-brain-thinking, logic-oriented folks. That doesn’t mean they don’t use their right-side at all…it’s probably relatively underutilized when it comes to making business decisions.
      And, why that’s significant is…understanding & decoding consumer’s needs, I think, requires a considerable amount of right-brain-thinking (in addition to the left-brain as well)….which they would much rather not deal with, because it seems to be so “hard to get”.
      And that’s probably why the general attitude towards end-user research has been of “Let’s-do-it-when-we-have-the-time-and-money”. Thankfully, not all clients think that way and people like me do end up putting our right-brain-thinking to good use.
    2. The other side of the coin: Researchers haven’t done a good (enough) job of translating research findings into tangible/measurable business recommendations or solutions. World-over, there seems to be (in my experience) an innate skepticism that research just ends up in a report that one files away, hardly ever to use one’s business decisions. So, researchers need to start talking business and the language of business to be able to really deliver the value that research often promises.
  • While making a point during the discussion, one of the women in the audience talked about a conversation she once had with the store manager of one of the large (departmental/lifestyle) stores in Bangalore. The store manager said that only 40% of the store was allocated to women’s products and almost 60% was for men! The logic being that, women don’t actually buy as much as they spend so much time at the store!!!
  • On a related note…and this I don’t recall so clearly…there was also a point about how some (traditional) business practices & approaches are so different in different parts of the world. In India, the conventional approach to pricing coffee would be to charge more for coffee with sugar (‘coz you’re having to spend on more sugar). But in the west, the practice is to charge more for diet drinks!
  • Unlike most other TiE events (in Bangalore) that I’ve attended, this seemed to have the least participation from the techie crowd. There seemed to be several CEOs and heads of small-medium-enterprises in the crowd. Does it indicate the lack of interest among the techies about creating user-centered products & services? I guess that’s too harsh a conclusion to draw, but this phenomena didn’t seem like something to not make note of.
  • The discussion (especially between the audience and the panelists) kept going back to the unresolved issue about connectivity to the new Bangalore airport that’s coming up in March 2008. One had to be there to experience the irritation, anger, frustration and complete resignation about the state of (infrastructure) affairs, surrounding the connectivity to the new airport.
    Of course, Rama did touch upon the fact that there are people who actually get to benefit from such poor connectivity or infrastructure, the cellphone companies to start with. If you aren’t getting to the airport on time or are even avoiding the travel, chances are you’re using the good ol’ phone to communicate with your business associates or your near & dear ones! Interesting.