Question

GfK, a European custom marketing research company, conducted a two-year, two-part study to determine the new trends in European youth and culture—what matters to European teenagers, and lows international marketers should approach them. Exploratory research form of focus groups watt conducted first to identify issues that are salient to European youths the issues in focus groups were quantified by conducting a descriptive longitudinal survey. The survey was conducted in two parts spanning 16 different European countries, including Denmark, Norway, Sweden, the United Kingdom; Germany, Italy, Spain, and France, among others. In each country, four groups of respondents were selected; 14-16-year-old girls, 14-16-year-old boys, 17-20-year-old girls, and 17-20-year-old boys. A descriptive survey was designed and administered in personal, face-to-face settings. Given the European youth culture, it was felt that the teens would feel more comfortable and be able to provide more candid responses in a personal setting. A total of 523 young people participated. Two years later, the same people were contacted in 9 of the 16 countries, with a total of 305 people participating. The results showed that tastes and opinions of teenagers in Europe have been changing dramatically over the past few years and particularly during the last two years. It was discovered that European teen;; did not trust big companies. The concept of home included not only the family and actual home dwelling, but a sense of belonging and community, especially with friends. It is a symbol of coziness and warmth. The European teens did not see their families much during the week. Instead, friends filled this home function. Finally, they did put a lot of stock in a brand that has been around for a long time, feeling that if the brand has proven its existence over time, it must be good and worth; of its long stay. The results proved very beneficial for McDonald's (www.mcdonalds.com) in developing their inter national advertising aimed at this market. McDonald's new campaign did not focus on its big-company' status but localized its advertising to make it seem to be the local hamburger hangout joint for teens. Meeting up with friends at the local McDonald's made the McDonald's "home." It appeared to fun, and the teens wanted to be there. Additionally, McDonald's focused on the longevity and stability of the brand. It will always be around as a fun place where teens can hang out with their friends anti have fun for a low price. The campaign resulted in increased mark- share in the lucrative European teenage market. As of 2009, McDonald's derived more than 35 percent of its total sales froth Europe.

-1-What is the rationale behind choosing a descriptive longitudinal survey which lasted two years?

2-What have been changed in GfK panel over time?

3--Why the exploratory research was conducted before the descriptive longitudinal survey?

4--How McDonald’s benefited from GfK’s findings?

Answer 1

1. As per the standard definition"A longitudinal study (or longitudinal survey, or panel study) is a research design that involves repeated observations of the same variables (e.g., people) over short or long periods of time (i.e., uses longitudinal data). "

Given the nature of the desired output and also the profile of the target customers, a descriptive survey with a face to face interview was the best possible mthod to achieved the desired result as more detail oriented and in-depth answers were required in part 2 of the study.

Longitudinal research allows us to map consumer trends by studying rapid fluctuations in consumber behvior and decision making ,which could be a result of chiange/modification in thoughts and emotions, over a certain period of time. In this reserach mode, we track the the same people over a shorter/longer period of time as per the requirement - and thus this helps us observe and document people behavior amd decisions and at the same time minimising the impact of cultural values,age or external factor  which may creep if we observe different people.

Simply put, if we need to understand user behavior of a specific set /age group (eg : 14-16-year-old girls, 14-16-year-old boys, 17-20-year-old girls, and 17-20-year-old boys in this case) and observe the change in behavior /decision across the different groups for the same user.

eg : In this case, the case study would allow to capture the behaviour of

1. Poeple moving from 14-16 to 17-20

2. for people who stay in the same group, thus dominant behvior and decision making for this group.

Part 2. Over a period of time the following changes were observed over period of time :

1. Participant count reduced from 523 to 305
2. Countries reduced from 16 to 9
3. Observations from the survey :
   • Trust for big companies declined in European teens
   • Home included a larger subset, both in terms of people and surroundings. It included friends, community and sense of belonging - more coziness and warmth
   • Friends were "home" factor for teens during the week
   • Brands tenure in the country was very important for the decsion making - if the brand has proven its existence over time, it must be good and worth; of its long stay.

Part 3 : Exploratory research are as the words means are exploratory in nature, they are sued when you want to explore the causation for a possible outcome or possible root causes. In this case, it was imperative to identify the potential issues relevant to the Eurpoean teens, as this helps us to understand what is that we need to solve for and thus the questions/parameters/hypothesis are all formed basis this input.

Part 4 : With the input from study, Mcdonald did the following strategic and brand related changes:

• Chnaged advertising from a big company to "local hamburger joint " for teens
• As during the week, friends were "home"- thus mcdonald as the hangour joint became "home" for teens
• Reinfornced and maintained the longetivity and stability of the brand
• Low price and always fun place for the teens
• Huge boost in sales and sales/revenue market share
• As of 2009, McDonald's derived more than 35 percent of its total sales froth Europe.

Thanks