INTERNSHIP MEMORY ANALYZE OF MICHAEL PORTER S GENERIC STRATEGIES AND ITS RELATIONSHIP BETWEEN INNOVATION

Université Jean Monnet - Saint-Etienne
Master 2
Intelligence Economique et Gestion de l'innovation
Année universitaire 2010 -2011
INTERNSHIP MEMORY :ANALYZE OF MICHAEL PORTER’S
GENERIC STRATEGIES AND ITS RELATIONSHIP BETWEEN
INNOVATION
Présenté et soutenu publiquement
par
Onur GUVENC
Préparé sous la direction de Muriel FADAIRO CHENEVARD, Maître de
Conférences à l'ISEAG
et de
Banu ALPTEKIN, GfK Türkiye, Saruhan Plaza No :6 Bomonti/ISTANBUL,
TURQUIE

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APPRECITION
I would like to acknowledge the following people for their support, assistance and patience
with this internship.
First of all, I thank to:
Banu Alptekin, quantitative research senior manager at GfK Türkiye. She helped me from
the beginning of my internship until the end with her refinement. She was busy but never
refused to answer my questions and helped me to adapt myself to business environment of
GfK. She also carried attention on other members of GfK to increase their cooperation with
me.
Deniz Kum, quantitative research senior executive at GfK Türkiye. She helped me when I
faced with technical problems and taught me how to write a research report.
Elif Hacıbektasoglu, quantitative research executive at GfK Türkiye. She was my immediate
supervisor and allowed me to take on the entire job duties while conducting the research
project.
I would specially like to thank Muriel Fadairo Chenevard, lecturer in economics at Jean
Monnet University who conducted our Innovation Economics and Innovation Management
courses and who is my internship advisor. She helped me with her opinions that enlarged my
view while I was preparing this report and she answered all of my questions during my
internship period.
Besides the project that I participated, I really enjoyed my stay at GfK Türkiye, appreciated
all people I worked with and spent good times with them.

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ABSTRACT
The memory presents the tasks completed during internship at GfK Türkiye. The academic
roots of the memory is coming from Michael Porter’s generic strategies and my review on a
realized project as an application of a company which pays attention on innovation, follows
and shows the similarity between the theory and the reality. This study also will inform you
about GfK Türkiye and my internship experience at there. I am also going to explain the
essentials of my work and my mission at the company; the business methodology, the
facilities and the difficulties of working at at GfK Türkiye. I also include a self-criticism on
my internship and Michael Porter’s generic strategies due to my observations.

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TABLE OF CONTENTS
INTRODUCTION.....................................................................................................................1
1. Generic Strategies……………………………………………….........................................1
1.1. Cost Leadership……………...............................................................................................1
1.2. Differentiation………………………………….................................................................2
1.3. Market Segmentation……………………………………………………………………...2
1.4. Criticisms………………………………………………………………………………….2
1.5. Treacy and Wiersma’s approaches………………………………………………………..4
2. Objectives of the memory………………………………………………………………….5
CHAPTER 1: Presentation of GfK and my mission………………………………………..6
1.1. GfK Group and GfK Türkiye……………………………………………………………...6
1.2. Why GfK…………………………………………………………………………………..7
1.3. Qualitative at GfK Türkiye ………………………………………………………………..9
1.4. Quantitative at GfK Türkiye……………………………………………………………….9
CHAPTER 2: Realized case study: Canderel in Turkish Sweetener Market…………...10
1. Merisant’s brief and demands: Canderel Green or/ and Pure Via in Turkey………………10
2. Pure Via Cubes with Zero calories………………………………………………………...11
3. The Brand Image…………………………………………………………………………...11
4. What are the objectives? What are we going to do at GfK for Merisant?............................12
5. Research Process..................................................................................................................13
5.1.Qualitative Research..........................................................................................................13
5.2.Quantitative Research........................................................................................................15
6. Discussion...........................................................................................................................17
CHAPTER 3: Internship as a learning process...................................................................19
1. My expectations....................................................................................................................19
2. My benefits………………………………………………...………………………………19
3. My observations……………………………………………………………………………20
CONCLUSION……………………………………………………………………………...21
SOURCES……………………………………………………………………………………22

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INTRODUCTION
1. Generic Strategies
Generic strategies were at their most popular in the early 1980s. Michael Porter has described
a category scheme consisting of three general types of those three main strategic options open
to organization that wish to achieve a sustainable competitive advantage. Each of these three
strategies is considered within the context of two aspects of the competitive environment:
strategic scope and strategic strength. These two dimensions are classified to look for the
answers of two main questions:
Are the products differentiated in any way, or are they the lowest cost producer in an industry
is the question about the sources of competitive advantage and for the competitive scope of
the market, it is asked if the company targets a wide market, or does it focus on a very
narrow, niche market?
In his 1980 classic Competitive Strategy: Techniques for Analysing Industries and
Competitors, Porter simplifies the scheme by reducing it down to the three best strategies as
Cost leadership, Differentiation and Market Segmentation (Focus).
1.1. Cost Leadership
A firm pursuing a cost-leadership strategy attempts to gain a competitive advantage primarily
by reducing its economic costs below its competitors. If cost-leadership strategies can be
implemented by numerous firms in an industry, or if no firms face a cost disadvantage in
imitating a cost-leadership strategy, then being a cost leader does not generate a sustained
competitive advantage for a firm.
Factories are built and maintain, labor is recruited and trained to deliver the lowest possible
costs of production. So, logically ‘cost advantage' is the focus. Costs are shaved off every
element of the value chain. Products tend to be 'no frills.' However, low cost does not always
lead to low price. Producers could price at competitive parity, exploiting the benefits of a
bigger margin than competitors.

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1.2. Differentiation
A differentiation strategy is defined as the provision of products or services that offer benefits
different from those of competitors and that are widely valued by buyers. Differentiated goods
and services satisfy the needs of customers through a sustainable competitive advantage. This
allows companies to desensitize prices and focus on value that generates a comparatively
higher price and a better margin. The benefits of differentiation require producers to segment
markets in order to target goods and services at specific segments, generating a higher than
average price. There is also the chance that any differentiation could be copied by
competitors. Therefore there is always an incentive to innovated and continuously improve.
So innovation becomes necessary to be differentiated.
1.3. Market Segmentation
This strategy is also known as a 'niche' strategy and focus strategy. Where an organization can
not afford neither a wide scope cost leadership nor a wide scope differentiation strategy, a
niche strategy could be more suitable. In adopting a broad focus scope, the principle is the
same: the firm must ascertain the needs and wants of the mass market, and compete either on
price (low cost) or differentiation (quality, brand and customization) depending on its
resources and capabilities.
1.4. Criticisms
The issue most critics take with these strategies is that it presents the world in rather finite
terms - the market is either broad or it is narrow. The firm has competencies or it doesn't. In
reality, firms have competencies that are effective in niches. A firm might develop dominance
in a niche that is an early adopter, for instance, and then leverage that dominance in another
niche that is an "early majority" market adopter. Given the volume in the early majority, the
firm can leverage that into a low cost position (based on the volume), and then use the cash it
generates in broad market dominance to generate core competencies and then develop a
differentiation strategy. Examples of such firms are Intel and Microsoft. Porter' generic
models would suggest that once Intel develop a niche in memories, it should have stayed there
or strived for cost leadership and stayed there. Instead, they used their niche to fuel the plunge
into processors and the rest is history. Similarly, the model represents a static picture of

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customers - they are all the same. Whereas, if we look at customer behavior, some niches are
the path to broad market dominance (early adopters to early majority to late majority to
laggards).
Another area for criticism is that perhaps the firm's strategy should be to look outside the
present market for its ideal strategy. Porter doesn't contemplate this. For instance, Apple is a
"computer" company. So by Porter, they should have looked for their niche, or developed a
cost position, or found a core competency to go after to develop competitive differentiation.
Instead, they went forward to develop a personal music product. When that product became a
"commodity" with several competing technologies, they went in the phone market -
recognizing that this was once of their chief competitors outside their market. Porter's
strategies would not have contemplated this strategic move.
Combining multiple strategies is successful in only one case. Combining a market
segmentation strategy with a product differentiation strategy is an effective way of matching
your firm’s product strategy (supply side) to the characteristics of your target market
segments (demand side). But combinations like cost leadership with product differentiation
are hard (but not impossible) to implement due to the potential for conflict between cost
minimization and the additional cost of value-added differentiation. Since that time, some
commentators have made a distinction between cost leadership, that is, low cost strategies,
and best cost strategies. They claim that a low cost strategy is rarely able to provide a. In most
cases firms end up in. Instead, they claim a best cost strategy is preferred. This involves
providing the best value for a relatively low price.
During my internship, I had a chance to examine Porter’s approach. In the next chapter, I will
try to show the application on Canderel case and analyze Porter’s “generic strategies” and so
remark the similarities and/or differences between the theory and application on Canderel
case. When we look at the situation from this perspective, I mean when we try to point out
the similarities and/or differences or limits of an approach, first of all, we come upon some
other approaches.
Several commentators have questioned the use of generic strategies claiming they lack
specificity, lack flexibility, and are limiting. In many cases trying to apply generic strategies
is like trying to fit a round peg into one of three square holes: You might get the peg into one
of the holes, but it will not be a good fit. In particular, Millar (1992) questions the notion of

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being "caught in the middle". He claims that there is a viable middle ground between
strategies. Many companies, for example, have entered a market as a niche player and
gradually expanded. According to Baden-Fuller and Stopford (1992) the most successful
companies are the ones that can resolve what they call "the dilemma of opposites".
Recent developments on generic strategies are also actualized. Michael Treacy and Fred
Wiersma (1993) have modified Porter's three strategies to describe three basic "value
disciplines" that can create customer value and provide a competitive advantage. They are
operational excellence, product innovation, and customer intimacy.
Now I will try to present these three comments/approaches of Viktor Millar; Baden-Fuller
and Stopford; Michael Treacy and Fred Wiersma in the following part.
1.5. Treacy and Wiersma’s approaches
Treacy and Wiersema assert that companies achieve leadership positions by narrowing, not
broadening their business focus. Treacy and Wiersema identify three "value-disciplines" that
can serve as the basis for strategy: operational excellence, customer intimacy, and product
leadership. You should concentrate on one of these value disciplines, but pay attention too on
the other two disciplines. Treacy and Wiersema’s value disciplines are:
 Operational Excellence: The Strategy is to focus on the production and delivery of
products and services. The objective is to lead the industry in terms of best total
costs and hassle free interaction with the firm.
 Product Leadership: The Strategy focuses on producing a continuous stream of new
innovative products and services.
 Customer Intimacy: The Strategy is about tailoring and shaping products and
services to fit an increasingly fine definition of the customer. The objective is long-
term customer loyalty and long-term customer profitability.

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2. Objectives of the memory
During this study, I will try to show the similarities and the differences between the theory;
actually Michael Porter’s generic strategies, and the reality. This study will be an example of
the relationship between the academy and its reflections on the reality. In the theoretical part
of the study as I mentioned on the first part of the introduction is the general approach for the
strategies of the companies. Beside this observation, we are also going to discuss on the
Canderel case study that I was a participant of the research project applied by GfK Türkiye
where I did my internship.
After all, the object of this memory is:
 Attempting to make a clarification about the concepts, including the reasons for
the recent emphasis on marketing knowledge.
 To structure the different possible strategies to distinguish between components.
 Provide a reflection on the importance of innovation during constructing the
strategy.
 To present GfK Türkiye and my internship period.
Conversely, it is not to propose a solution to innovation and/ or marketing strategies of the
companies.

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CHAPTER 1: PREZENTATION OF GfK AND MY MISSION
1.1.GfK Group and GfK Türkiye
The GfK Group, the No. 4 market research organization worldwide, was established in 1934
in Germany. The company has over 115 subsidiaries and affiliates located in 100 countries.
Of a current total of more than 9.300 employees, approx. 80% are based out of Germany.
GfK Türkiye is the leading market research agency in Turkey. The company was established
in 1987 and celebrated its 20th
year in Turkey in 2007. As a member of the multi-national GfK
Group ranking 4th in the global research market and active in 100 countries on 5
continents, GfK Türkiye is in tune with all innovations and improvements in the research
sector at the global level.
GfK Türkiye offers fact-based consultancy to help companies achieve sustainable growth in
today’s competitive environment providing reliable data collection and insightful reporting
that enables its clients to shape their business and marketing strategies.
From customer satisfaction to employee satisfaction, brand-image surveys to medical
research; GfK Türkiye develops custom models for all marketing research types that meet our
clients’ needs, using the qualitative and quantitative techniques.
GfK Türkiye employs 272 full-time employees and continues to strengthen its innovative
position in the sector by pursuing its successful business strategy and by focusing on its 5
corporate values; “client focus”, “our people”, “innovation”, “global expertise- local
knowledge” and “growth”.
From the employee’s side, unfortunately everything is not really perfect at GfK. There is not
too many things to tell but I can tell three main unfavorable points from the basis of my
observations and experience. First point was that the installed office program was the 2003
version and before, I used to use the 2007 version. That was a big problem for to adaptate
myself to the usage of the old version. But after two weeks, that was perhaps my chance, they
update the program and uploaded the 2007 version.
Second problem at GfK is the working hours. Even I didn’t stay more than the regular
schedule, almost everybody stays for over time! That made me think about a basic ratio
problem. If one work can be done by one worker in one day, how many workers can complete
two works in one day? The answer is clear: two. But at GfK, even the projects that they get
from the customers increase, they want to manage those projects by the same sum of people
and so, to complete the work on time, too many people stay and work without any supplement
or bonus benefits.
Third problem is the salaries. The salaries offered by GfK are lower than the offers of their
competitors in the “market research” market. But we can also say that if both sides; employer

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and employee agreed, there is nothing to say about. But I had to underline this as a problem
by my side.
1.2. Why GfK?
Knowledge is at the core of our culture, tools, investments because; knowledge is the basis for
effective decision making, the essential for business growth and it is delivered by actionable,
insightful research.
Companies must make decisions, decisions are based on research. GfK Group supplies the
knowledge needed by industry, commerce, the service sector and the media to reach their
marketing decisions and convert market opportunities into success. This GfK philosophy
comprises the following important principles among others:
 Fact-based Consultancy: GfK Group provides fact-based consultancy services going
beyond simple statistics to deliver added value to customers by analyzing and interpreting
collected data. Seven decades of active research and advice have taught one thing above
all else: Knowledge is not just about data.
 Global: 24-hour business around the globe, provided by 115 companies in 100 countries
on 5 continents.
 This international network guarantees the same high quality and the same research
standards in all countries.
 Innovation: Sophisticated tools such as GfK Ad*Vantage, GFK
TARGET*POSITIONING, GfK LoyaltyPlus and GfK*PRICE CHALLENGER make

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it possible to apply innovative research methods worldwide. GfK Group has received
ESOMAR awards for GfK PRICE CHALLENGER methodology in 1998 and in 2002 for
a new approach to evaluate the financial value of a brand. GfK Academy carries out
GfK’s own R&D research. Innovative multimedia technology and the Internet are also
used to enhance the research design and increase respondent co-operation.
 High quality and standards: The development of a proper study design and consistent
high quality standards, on a national as well as an international level are elementary for
GfK.
 Trustworthy Research Certificate (GAB): GAB, is the certificate given by the
Marketing and Opinion Researchers Association to companies who qualified to
carry the Trustworthy Research brand. After the completion of audit by Bureau
Veritas in August 2007, it is certified that under “Full Service Research Company”
(Qualitative-Quantitative Data Collection, Data Control, Data Processing,
Analysis, Reporting) and “Panel Research”, GfK Türkiye works in accordance
with Trustworthy Research Standards.
 Quality Certificates: ISO 9001:2000 is an international standard that gives
requirements for an organisation's Quality Management System (QMS). It is part
of a family of standards published by the International Organisation for
Standardisation (ISO) often referred to collectively as the ISO 9000 series. ISO
9001:2000 is based on eight management principles. These are Customer focus,
Leadership, Involvement of people, Process approach, System approach to
management, Continual improvement, Factual approach to decision making,
Mutually beneficial supplier relationships. Power of accreditation of certification
bodies were given to committees of member countries. Accreditation power in
Turkey was given to TURKAK. GfK Türkiye, targeting sustainability in its service
quality by focusing on client satisfaction, has been verified to be in conformance
with ISO 9001:2000 for “Provision of market research, survey conducting, data
gathering, , data analysis and data reporting services” in January 2009.
 Forcefulness
 Speed – understanding the need well, taking quick action and giving fast feedback.
 Flexibility – adopting to the changes quickly and providing solutions.
 Effective Team Work – sharing of experiences and creating synergy.
 Power of EQ – Building empathy in understanding the needs of our client, being
warm, close, creative and enjoy working as a team.
 Constant follow up and communication – Asking questions to clarify everything,
providing continuous flow of information with a systematic approach.
 Strong Human Resources in European and Asian part of Istanbul– 2 seperate
qualitative teams with team members specialized in sociology, psychology,
business administration, providing good quality of moderation and output.
 Being Sensitive in Recruitment – Having effective controls in a special program
via computer and applying questionnaire in person before the groups, in-depths.

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 Global Perspective – having experience in working with international clients.
 Pool of experience – GfK’s project teams combine market experience,
methodological competence and international expertise.
1.3. Qualitative at GfK Türkiye
In qualitative research, GfK focuses on understanding motivations, needs, relationships and
behavior - basically, human nature.
To do this well, the most important thing is to build a team of people who have sound
experience and specialist knowledge in deciphering the consumer and the corporation. That's
what we've done. GfK’s team of dedicated qualitative researchers is unrivalled in experience.
GfK comes from a wide range of backgrounds, from advertising to psychology, and pool our
efforts to deliver insight of the highest quality.
GfK is not just a group machine. GfK makes sure that they have access to all the latest
methodologies and techniques, as well as tried and tested approaches at their fingertips. This
allows them to focus our sights on how best to get the most out of people, whether it's young
children, doctors or CEOs.
From observational techniques to extended creative sessions, and from projective techniques
to developing stimulus material, GfK genuinely tailors their approach to make sure that they
gain as much understanding for their clients as possible.
1.4.Quantitative at GfK Türkiye
GfK’s approach to quantitative research reflects the philosophy which permeates the
company. More than researchers, they are problem-solvers. As they say, they want to
understand the business issues that their clients involve them in, and design tailored research
approaches to help them make more informed business decisions.
This is reflected in every aspect of GfK’s work - from challenging the brief to ensure that they
are really focused on the key issues, to delivering findings that make it clear to their clients
how they can move forward with confidence.
To achieve this goal, they are able to utilize a wide range of research methods, from the very
simple to the very complex. The team at GfK includes people who are experts in techniques
like conjoint analysis, choice modeling, pricing research and segmentation. As a trainee, who
worked at GfK for three months only, I can honestly say that I really felt what GfK says for
them. But while we enjoy the challenge of complex methods like these, we gain equal
satisfaction from the use of a very simple approach when that is the most appropriate tool to
use. This might be the best point of working as a member of GfK quantitative research team.

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CHAPTER 2: REALIZED CASE STUDY: CANDEREL IN TURKISH SWEETENER
MARKET
1. Merisant’s brief and demands: Canderel Green or/ and Pure Via in Turkey
In this part, I will explain the sweetener market situation in Turkey and Merisant’s role and
actions in the market. I will also present their products based on their explanations on the
products where everybody can see and read. The main questions of Merisant were starting
with those three questions:
Which brand?
Which potential per channel?
Which potential for the range?
 Merisant is planning to launch an innovative & natural range of sweeteners based with
Stevia plant.
 Merisant has 2 brands and different products portfolio: Pure Via or Canderel Green.
- 3 Canderel Green SKU’s (stock keeping unit) : Tabs 100, Powder 40 g, Sticks
40
- 3 Pure Via SKU’s: Cubes 65, Sticks 40, Powder 80g
 Canderel Green would be a brand extension. Canderel is already on the market in
Turkey for20 years.
 Pure Via would be a new brand launch.
 Pure Via has a very innovative range, Pure Via cubes, a natural sweetener & zero
calories.
 As Turkish sugar market is cube format, Merisant would like to investigate in
launching Pure Via brand in Turkey.
 Sweeteners are mainly sold in pharmacies; there is a small diabetic’s corner in the
supermarket with sweeteners.
 81% of the sweetener volumes sales concentrated on 2 main actors - Canderel and
Dulcaryl in the pharmacies - offering a sweet feeling with 0 calorie.
 In November 2009, sweeteners are not reimbursed any longer by government. That
category is not monitored supermarkets. Splenda is the only brand growing in value in
the pharmacies in 2010.
 In this transformed context,

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 Canderel Green would offer a natural no-calorie sweetener –targeting the
current sugar free artificial sweeteners consumers, especially the Modern
Paradoxal profiles of consumers, concerned by their appearance and indulgence.
Canderel Green is “the sugar alternative made with natural sweetener”.
 Pure Via would offer a natural “sugar” and zero calorie - targets sugar
consumers in priority; these consumers are characterized by three types of
‘concerns’: their ‘everyday health’, ‘losing weight to stay beautiful’, and adopting
a ‘healthy diet’.
2. Pure Via Cubes with Zero calories
Turkish sugar market is big and is a cube format. In the supermarket, sweetener category is
separated from the sugar shelves; they are not in the same corner. Doga Lite & Sweet is
already on the market, in the sugar section, offering Stevia sweetener and sugar but not zero
calories. In this perspective, Merisant has a major innovation in only Pure Via portfolio:
 Pure Via Cubes with zero calories: a texture that is extremely close to sugar.
 a unique offer capable of targeting sugar users who are attached to cubes,
(leading format consumed, 60% in sugar volumes)
 to satisfy the needs of sugar & sweetener consumers looking for natural,
original products with no calories and whose major concerns are:
– My everyday health
– Eating a healthy diet
– Losing weight to look beautiful
3. The Brand Image
For each “natural positioning” player (Canderel Green/ Pure Via / Doga Lite & Sweet /
Splenda), determine brand image and perceived positioning
 Brand imagery, values and personality
 Perceived positioning within the competitive environment and degree of appeal,
motivations, key benefits
 Points of differentiation between brands
 Relationship with the brand
 Strengths and weaknesses
 key drivers and recruitment ability
 Review the elements of each brand mix

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- Packaging (reference world / nature of the product and implied product image /
packaging material: implied perceptions; claims, logo, perceived identity, etc.)
- Types of formats
- Price positioning (very high price positioning)
- Differentiation between competitors
4. What are the objectives? What are we going to do at GfK for Merisant?
• In this context, Merisant wished to conduct a test to validate the performance of the
brand, range and estimate its volume sales potential among the 2 channels:
Hypermarkets and Pharmacies.
• Attitude toward natural foods & stevia
• Which potential for Pure Via and Canderel Green in Hyper/Supermarket?
• Which potential for Pure Via and Canderel Green in Pharmacy?
• Which potential for Pure Via range: Cubes 65, Powder 80 g, Sticks 40 ?
• Which potential for Canderel Green range: Tabs 100, Powder 40 g, Sticks 40 ?
• Which potential for Pure Via range format in Hyper/Supermarket in the sugar section?
• Which potential for Pure Via range in Hyper/Supermarket in the sweetener section?
The main objectives are:
– Evaluate the potential of each natural positioning brand: Pure Via and Canderel
Green
– Confirm the evaluation of the potential of the product (format & channel &
category section)
– Evaluate its ability to recruit sugar / new sweetener consumers and to make the
category grow
– Evaluate the cannibalism among current Canderel sweetener users
– Reactions to the Canderel Green extension
– Finally to choose the most effective differentiated strategy.

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5. Research Process
The objectives, expectations and also the methodology questions were mentioned in the brief
of Merisant. The demand was to make a research based on two axes: Research qualitative and
research quantitative. In this memory, we will dwell upon the quantitative part of the research
as I was trainee in this department. To be capable to explain the qualitative part of the
research, I have also followed the process.
5.1. Qualitative Research
5.1.1. Main Objectives:
We had two primary objectives of this research that were; to understand the sugar / sweetener
usage habits, sweetener brand evaluations and to assess the evaluations towards Candarel
Red, Candarel Green and Pure Via concept, packages and tastes by the sugar and sweetener
consumers.
The other expectations of this research were to measure the “Natural trend”, the LCS (low-
calorie sweeteners) usage and its purchase trigger.
5.1.2. Methodology
Canderel Green and Pure Via will be evaluated Vs competition (Doga + Splenda). From these
starting points, we should have find out the answers if we could conclude which concept will
perform the best or if we should test Canderel Green versus Pure Via as well. Suddenly the
team determined the concepts that will be introduced. So in the end, we have four concepts
such Canderel Green, Pure Via, Doga and Splenda. But this time another question occurred.
We had to test if we could add Canderel Red into the set of competition to evaluate the
cannibalization risk.
The other aim was to measure the price sensitivity. By this measurement, we could know the
minimum & maximum prices, the optimum price and also the undifferentiated price. Before
all, we should have to answer if we should give the tested price or if we should give a range of
price to test out.
For the aforementioned objectives, 7 focus group discussions which were composed of 6-8
respondents each. These discussions were conducted at GfK Türkiye qualitative studios in
İstanbul on April, 2011. They were all video and audio taped. The audio and video recordings
will be filed for 6 months by GfK Türkiye. The participants were given incentives for
contributing to the research. And the recruitment phase was realized by phone calls. GfK
Türkiye works with field agencies which are members of Turkish Association of Marketing
and Opinion Researchers. Before the fieldwork, GfK Türkiye prepared a field brief and
screening form which is applied to each participant during the phone calls. Only the
participants suitable for the project are invited. The participants recruited by these agencies
are cross checked by GfK Türkiye both from company database and from Turkish Association
of Marketing and Opinion Researchers database in order to be sure they are not professional
participants.

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5.1.3. Samples
The focus groups were composed according to age segments like 25-35, 36-50, 25-45; socio-
economic status, occupation and the structure of the user as sweetener user, sugar user or
both.
On the focuse groups, we evaluated Canderel Green, Canderel Redd and Pure Via. We had
the chance to make evaluations towards natural nutrition & usage & consumption habits; and
also package & format & taste evaluations after this research.
5.1.4. Results
I. It is understood that the participants were not so selective on brand preferences, they
rather decide on the brand via “word of mouth”. They usually use the brands which
their friends or relatives suggest. Also some of the participants mentioned that they
continued using the brand that a member of the family uses. Doctors’ or pharmacists’
recommendations are also very important on brand choice. Although the main
motivation behind sweetener consumption is about weight control, it is seen that the
concept targeting the weight is not favored mainly by sugar consumers since this was
not relevant for them. Red concept is not found attractive and perceived as a new
product. Green concept attracted the participants’ attention because it emphasizes
naturality (stevia).
II. Participants perceive that Pure Via is more natural because it is being made from the
“essence” of the plant. Pure Via seems to target a wider range of consumers. It does
not only focus on the people who are on a diet, it also targets the ones who care about
their health and willing to eat healthier products. Powder format in general attracted
the majority of the participants’ attention at first because in the market there is no
similar format. However it has created purchase intention for the participants who
spend time in their kitchen and make desserts frequently. Others did not like to
purchase because it is hard to use and not practical to use with drinks. Besides, as the
consumers are used to consume high amount of sugar for the preparation of dessert,
the small size / amount of powder formats did not seem to be appealing to them. This
has affected the purchase intention negatively.
III. Stick format is the least liked format by the majority because it is not found to be
suitable for individual usage (neither at home nor for carrying in the bag). However,
one group of sugar consumers liked the stick format the most because it is found to be
similar to granulated sugar. Tablet format is the most liked format because most of the
sweetener users are accustomed to this format and some of the sugar consumers think
that it is easy to use for all places and purposes. However, one group of sugar
consumers did not like the format because they relate tablet format with medicine.
Cube format is the most attractive format because it is very unique, it looks very
natural and it is a very accustomed format. However, the small size / amount of the
product have affected purchase intention in a negative way.

15
IV. Overall, it is understood that the participants decide on the product based on two main
factors: “taste” and “format”. After this statement, we can say that Pure Via is the
most liked product group because of the sugar like taste and the cube format.
The results of the qualitative research were also important for the quantitative research
department. Because it is necessary to prepare the questions of the survey, according to
reflexions of the people. This method increases the trustworthiness of a quantitative research.
5.2. Quantitative Research
5.2.1. Objectives and Methodology
We realized this survey with 240 people by using face to face survey technique. The target
was the women who were over 30 years old and who were using sugar or sweetener at least
one time a day. The people that we reached were composed according to their socio economic
status in 4 groups. Our aim was to measure the taste potential of our new product against our
old product and our competitors’ products. We also would like to receive the comments about
the new package and about the new product’s concept. We divided the experimentals into two
groups: sugar users and sweetener users. We also measured the ratio of the diabetics that we
interviewed but most of them were the people who were not diabetics and so we didn’t need
to them in a new classification.
There were five products and we did four products tested in our two groups. We made sugar
user group tried sugar as well to make them compare the normal sugar and the sweeteners.
One experimental evaluated one concept and one package.
5.2.2. Results
As I mentioned before, we tested two new products: Pure Via and Canderel Green&Red. Pure
Via has two different concepts such cube format and stick formats. Second product as the
classic sweetener has also two concepts such Canderel Red and Canderel Green. We wanted
to measure the most preferred one between all and the competitors. We evaluated the results
in four categories: product & product potential evaluation, concept evaluation, package
evaluation and price evaluation.
I. Product and product potential in the market: We tested four products that were
prepared with sugar or sweetener and asked for tasting them and evaluate four main
questions below:
 Their overall like when they consider all the features of the product,
 Their favorite and disliked aspects about the product,
 The possibility to purchase the product when they think that its price is the
same with the product that they are currently using,

16
 To put in order the products that they have tested, starting from the most liked
one.
When we combine the answers, we achieved that new products have potentials in the
market. Their tastes were generally liked and they will be purchased if their prices are
same with the current products of the experimentals. But they left behind against the
opponent brand’s product with the taste scores.
II. Concept evaluation: We first showed the cards that were products’ pictures and red
texts about the related card and asked three main questions below:
 How they could rate the product that they saw on the card in terms of being
new and/ or different then the other artificial sweeteners on the market,
 How much the features of the products that they have heard are persuasive,
 If they liked the cube appearance of Pure Via as a sweetener, and the Green &
Red appearance of Canderel tablet.
The cube shaped product was equally liked in the sweetener group by the participants.
But when we look at the details, we can underline that the competitor’s product is the
most liked one. Cube concept got liked but due to sugar ratio it got behind its
competitor. Its difference didn’t get understood well or the difference doesn’t matter
for the Turkish sweetener users.
The choices of the participants also showed us that the new products have high
preferences and this shows us that there is not a cannibalization probability risk. So we
could understand that the products are persuasive about their features.
III. Package evaluation: We showed the new packages and asked two questions to
understand the effect of the new package on the users such:
 What were the liked and disliked points about the packages,
 By showing them a five scale answer card (five statements such as; I liked a
lot, I liked, neither liked nor disliked, I disliked, I poorly disliked) we wanted
to learn which statement about the packaging on the card best describes the
overall like.
The appearance scores of the packages were high and satisfactory. Participants showed
us that they liked the packages and that will increase the purchase intention.
IV. Price evaluation: For the price analyze, we first showed the cards of the related
products and asked,
 Which price level is as expensive as they think that they cannot purchase,
 Which price level is as expensive as they think but they can purchase,
 Which price level makes them think in doubt about the quality and causes not
to purchase,

17
 Which price level is cheap but the quality is acceptable.
Most part of the participants doesn’t have questions in mind about the quality and a
cheap price won’t change their purchase intention. But the highest price said by them
is lower than the price that we asked after they respond the first part. After this part we
offered specific prices for Canderel Green and Pure Via concepts. And we asked their
purchasing probability. As the result, the prices seem really high and they were
mentioned as a not purchasing reason.
6. Discussion
In this section, I will try to explain my independent opinions about the case. To be clearer
and to make you understood better, I taught to classify the subjects by matching with M.
Porter’s generic strategies. Firstly I will tell my ideas about the Canderel’s project
concerning our research. I will specify and interpret the quantitative research’s result
which means the survey, also with utilizing the results of the qualitative research.
When we look at the brief of Merisant, their objectives were a lot and it was impossible to
respond to all their demands. Because they would like to measure the market potential,
format, channel and category section of two products. Those two products were Pure Via
in three formats such cubes, powder and sticks; Canderel Green in three formats such tabs,
powder and sticks. So we can count all formats like different products and that makes six
products. Merisant has already two products in Turkish sweetener market like Canderel
Red and classic. How could it be possible to make people taste eight products and also the
competitors’ products? This was the biggest problem at the starting point. So we decided o
solve this problem by blind test method. Because the taste of the different formats of the
products was actually same. So finally we decided to make people taste the samples that
were prepared by us. I mean, we asked them if they wanted coffee or tea and then we
prepared the samples like one sample with Pure Via, one with Green, one with Red, one
with Classic and one with the competitor’s product Splenda that has the biggest market
share. In my opinion, testing five products was also a fault. Because when we make a taste
test, in general it must be done with two products. Even three is a lot but possible, five has
already been a lot.
We also had to measure the cannibalization risk of lancing new products. Because
cannibalization is one of the basic factors which influences the market segmentation
strategies. This is actually a multi-product strategy and there must be different products
for different sub-categories. So as the categories, we divided people such as sweetener
users and sugar users. So we had to make the sugar users taste Pure Via because of its
physical similarity to sugar and make the sweetener users taste Green because of the same
reason. But this was a bit bizarre for me. Because why a sweetener wouldn’t prefer to use
Pure Via? So we made both groups users taste all of the products. This time a
contradiction occurred in my mind. In my opinion, the results of the survey cannot orient
well the firm Merisant if they will prefer to use a market segmentation strategy.

18
As I mentioned before, a segmentation strategy doesn’t look suitable. And so, we have
two more strategies to discuss or a combination of both as a third strategy. M. Porter says
depending on his researches, it is difficult to apply two main strategies at the same time
such as cost leadership and differentiation strategies. In those two strategies, I want to say
that I cannot comment well about the cost leadership strategy because of insufficient data.
In order to our research, we have just achieved that the prices offered by Merisant are
higher than the people’s expectations.
Actually it is easy to say that the head strategy of Merisant was a differentiation strategy.
Because a differentiation strategy starts with an innovation, and when we study on the
new products, we see a lot of points that we can call like innovation such as totally a new
product; Pure Via, a new format; cube, and a new package for Canderel Green. These
products have already been lanced in different markets like French, American and English
etc. markets. So this means the differentiation strategy has already been conducted.
Planning to get in the Turkish sweetener market is also a part of the innovative idea of
Merisant.
As we learnt in the innovation management classes, there are many ways of
differentiation. But a successful one must contain three basic properties. First of all, this
differentiation and so the innovation must be difficult to copy. Secondly, it must generate
a customer value, and then it must provide a perceived value. I cannot comment if the
products are easy to copy or not but after the survey especially, I can say that the project
will certify that it obeys and contains the other two characteristics of the differentiation
strategy.
When we evaluate the results of both research; quantitative and qualitative, the most
important thing for the sweetener users in Turkey is the price. Even the package is
beautiful or the product is healthy, the price is attractive. In an operational strategy, there
are some important aspects to be considered like how the point of differentiation affects
the customer’s experience and influence of buying and using the product. It also must
serve some other points like decreasing costs and hence the price, adding performance and
from all, increasing people’s satisfaction. So as I think, a regulation on pricing will affect
the result of this strategy of Merisant. This makes me think a lot. Because, a
differentiation strategy is generally associated with higher price. Because it makes the
price less critical for the customer part. That depends on the customer purchasing power
and hence, we can disprove this approach.

19
CHAPTER 3: INTERNSHIP AS A LEARNING PROCESS
1. My expectations
The work that I performed during this internship was mostly thrilling and educative for me. I
feel that this internship exposed me to experience the knowledge that I gained during my
educational history especially the last year. I also feel that this internship gave me a chance to
test out my abilities and realizing this period in a research company helped me gain a research
humour which is the main axe to develop my personal skills and competencies.
In the strict sense, before starting at GfK, I knew that they work on many projects especially
on FMCG sector. As you would appreciate, the innovation in this sector became a very
important necessity in our century. During this internship I was expecting to participate a
project that is needed by an actor of FMCG sector. I thought that this would give me the
opportunity to follow a process of an action related to innovation. This was my biggest aim.
While searching a company for my internship, I was expecting to do it at a multi-national
company to have a work experience in that kind of business environment. I was sure that this
opportunity would help me to enlarge my perspective on global markets. This would be also
good to share and to be a part of a global knowledge.
As an expectation, lastly I can say that this internship would be a bridge between my
educational life and my career.
2. My benefits
I was lucky that in this three months period, I broadly found what I wanted.
I was a member of a research project management team and participate a project which was
about a company that would like to lance their new and/ or innovated products. That’s why
they wanted us to make a research to determine the most useful strategy. In order to this
project I thought to write my internship memory with the base of these possible strategies
with evaluating Michael Porter’s generic strategies. So I could state expressly my opinions
with having the academic basis.
I also had the chance to see some other projects which helped me to improve my knowledge
about marketing strategies of the companies and their effort on innovation that is the subject
which I am interested in.
From the side of evaluation of my skills, I learnt many things and improved my other
competencies. Experiencing how to run a team work, how to optimize time usage, research
and reporting methods were the most important gains. In addition, I improved my technology
usage such as getting faster the day after day on some tools such as excel, power point and
some GfK patented macros.

20
Career-wise, this internship undoubtedly enriched my CV. Also having gotten a chance to
interact with the employees, I have had an insight on how to draw my career path.
So to conclude, I want to say that my internship at GfK Türkiye was a rewarding experience
and provided me with some new perspectives and mix them with my other perspectives that I
met during my studies. It is sure that this internship increased my motivation.
3. My observations
I can classify my observations about the work and the company in two groups: positives and
negatives. Till now, generally I said the positive ones. Actually there are not too many
negative points to tell but I have some. For example the working hours are really a lot at GfK.
Most of the people are working at least 50 hours per week even the legal limit in Turkey is 40
hours with a composed salary and for the over-time, the company must pay you. But
unfortunately this does not exist at GfK.
The other lack is that the interns are not getting invited to internal activities of the
organization. In my opinion, even he/ she is an intern, he/ she is a part of the team and if he/
she is not invited to social activity that will reduce his/ her motivation and finally perhaps his/
her performance.

21
CONCLUSION
First of all I would like to tell that this internship as a part of the master programme was
totally helpful and it inured to my personal benefits. It was like a starting point of a
professional life and I had the chance to test out my abilities and I saw how I made a perfect
choice about this master.
Secondly I am going to talk about what we studied on this internship memory. We analyzed
Michael Porter’s generic strategies and with a case study, I would like to mention how those
theories are similar to the reality. In that case, the argument was especially the differentiation
strategy on marketing and the impacts of innovation on it. We can call every different
movement as innovation such as changing the colour, box, package etc of the product. In fact
this was an application of a company who lost its market share. This means that market
conditions also push the innovation. Finally this makes innovation as a inevitable way of
being or continuing on the market as an actor.
With sticking to my objectives of this study, I tried to attempt to make a clarification about
Michael Porter’s concepts and marketing knowledge which is affected by innovation. We also
looked over the different possible strategies as well. With this, we distinguished the
components of the strategies. Suddenly as another objective, I presented you GfK Türkiye and
of course my internship period which helped me increase my personal skills and which gave
me the opportunity to get in a business world.

22
SOURCES
 http://www.gfk-academy.com/index.php?article_id=6
 http://books.google.com.tr/books?id=tA1bYJ8FIzIC&pg=PA24&lpg=PA24&dq=Bad
en-
 http://books.google.com.tr/books?id=tA1bYJ8FIzIC&pg=PA24&lpg=PA24&dq=Bad
en-
Fuller+and+Stopford+critics+on+porter&source=bl&ots=t7_sUIb31a&sig=vlmbvzjcr
cSgcHQQ28-_RfaEpko&hl=tr&ei=TQDaTa-
NENHLswaMirX4Ag&sa=X&oi=book_result&ct=result&resnum=10&ved=0CGAQ
6AEwCQ#v=onepage&q&f=false
 http://www.marketingteacher.com/lesson-store/lesson-generic-strategies.html
 http://canderel.com.tr/
 Innovation=Simplicity, Insights from a marketing master, TARZIAN Charlie, Jersey
City, 2008
 Marketing Management, KOTLER Philip, Michigan, 2010

INTERNSHIP MEMORY ANALYZE OF MICHAEL PORTER S GENERIC STRATEGIES AND ITS RELATIONSHIP BETWEEN INNOVATION

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