Problem
Case Study
The Cosmos Soft Drink Co. Ltd is concerned about its low market share despite extensive press advertising and colourful displays in large retailers. The image the company was trying to create was a 'sport energy drink' for youthful consumers.
This was because the directors had used census data to discover that the proportion of the population under 18 was forecast to rise in the next ten years and the sports participation rates of most age groups were increasing. The directors believed that this image was the correct one to have and that other factors were to blame for the poor sales performance. Market research was undertaken using a telephone survey as they believed that quick results were essential to allow them to take the right measures to boost sales.
A questionnaire was drawn up asking for details of soft drinks bought and the reasons for purchase decisions, names and addresses of the respondents so that free vouchers could be sent, income levels to identify consumer pro?les and many other details that the directors thought might be useful. One hundred people were to be contacted by picking names at random from the telephone directory.
The results of the survey were disappointing. Many calls were not answered, some people refused to answer some of the questions and some elderly respondents said that all soft drinks were too sweet and ?zzy for them anyway. The directors were no clearer after the survey about what could be done to increase sales of Cosmos soft drinks.
Task
I. What evidence is there in the case study that this business has used secondary research methods?
II. Analyze two possible reasons why the results of the telephone survey were so disappointing.
III. Suggest and justify two alternative sampling methods that Cosmos could have used to achieve more useful results.