Are Indian Customers Ready for Family Pack Sized Product Edited

7/28/2019 Are Indian Customers Ready for Family Pack Sized Product Edited

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Are Indian customers ready for family pack sized product?

Rasik Bhatte 02

Danish Shaikh 46

UNDER THE GUIDANCE OF

Dr. Hanif Kanjer

Founder and Dean

(RUSTOMJEE BUSINESS SCHOOL)

1st

January 2013

Rustomjee

BusinessSchool


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ACKNOWLEDGEMENT

We would like to express our profound gratitude to all those who have been instrumental in

guiding us through our research .We express our sincere thanks to Dr. Hanif Kanjer founder

and dean of Rustomjee Business School for giving us this opportunity.

We are deeply grateful to Mrs.Shipra Bhatia, our project guide, for the cooperation extended by

her to conduct this study, advising us on the project report and furnishing the required

information. We would also like to thank the faculty for their constant support.

Last but not the least we would like to thank my parents and friends for their constant help and

support.

INTRODUCTION

Many companies launching their products in family pack sized packets. To offer products in afamily pack is one of the strategies most marketers adopt as a successful business gimmick. This

strategy works best both for the end-users and the marketers alike.

Earlier Indian consumer were instead of putting money in buying commodities in advance, they

used to shop frequently by purchasing small amount of commodities. One of the reasons for thisbuying pattern was lack of economical prosperity. But now India is growing economy and

income level of middle class is rising. Today people dont have much time for everyday

shopping. Consumption level is also increasing. In towns big malls are coming up where people

give preference to buying in large quantity in advance. By considering this ecosystem manyFMCG companies are already launched and coming up with new family pack sized product. But

where is the place of these products in Indian consumersbasket?

Many of the family packed sized product we dont consume at a time. FMCG companies are

generating wants for family packed sized product by,

Relating them with family, Idea of eating with sharing, Giving discounts, Attractive packaging etc.FMCG companies generating Wants for their family pack sized product but is there Demand forfamily pack sized product?


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RESEARCHMETHODOLOGY

As market gets more competitive, at times it becomes more crucial to not merely understand but

even anticipate consumer requirements. Concepts of marketing thus tell us that success in

business thus greatly dependent on identifying the consumer needs and satisfying them better

than competition. Briefly put, marketing research is process of identifying consumer needs and

determining how best to satisfy them.

Research design can be thought of as the structure of research -- it is the "glue" that holds all of

the elements in a research project together.

The research process consists of the following steps:

PROBLEM RECOGNITION AND DEFINITION

HYPOTHESIS GENERATION

DEFINING OBJECTIVES OF RESEARCH

SAMPLING

DATA COLLECTION

QUESTIONNAIRE DESIGN

DATA ANALYSIS

CONCLUSION

LIMITATION

1. STATEMENTOF THE PROBLEM

The study is done to determine the reason as to which

1) Are consumers ready to buy family pack size product or not

2) To find consumer demographics who purchase family pack product3) Why Consumers choose a particular brand

2. PROPOSED RESEARCH HYPOTHESISOnce the actual problem has been articulated, the next step is to transfer them into testable

hypothesis. When confronted with a given situation, we tend to make assumption about its


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causes. Similarly hypothesis are assumptions about the possible causes of issue in hand in the

organisation. We test these hypothesis for validity of our assumptions.

Following are the hypothesis:-

1.More than 50% buyer of family pack products buy family sized pack over normal pack it

because of discounts.

2.Amount spend on the purchase of family pack sized product is dependent on the size of the

family

3. OBJECTIVES OF THE STUDYTo examine the demographic profile of the current users of family pack products.

To study the recent trends.

To evaluate the amount spend by consumer on family pack product.

The major benefits desired in a family pack by the users over regular pack.

4. SAMPLINGSampling: - Sampling means method of studying from few selected items, instead of entire

big number of units.

The Sampling unit: - Consumers of family pack product including students, housewives,

working men etc.

The size of the sample: 63

Sampling Technique: - Simple Random sampling without replacement

This method chooses n number of units from population in such a way that each of unit of

population has equal probability of being selected.

Simple random sample: However, this does not guarantee that a particular sample is a perfect

representation of the population. Simple random sampling merely allows one to draw

externally valid conclusions about the entire population based on the sample.


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5. TYPE OF RESEARCHExploratory research

The major objective of exploratory research is to identify and define the scope of the problem.

It allows researchers to generate and test the Hypothesis. Also it allows the perceptual

mapping of the company and competitors.

It is opposed to pure research which is not problem-oriented but for the increase in knowledge

which may be used in future.

6. DATA COLLECTION

a. Primary Data: Primary data has been collected using Survey.

Surveys are almost necessity for collecting wide variety of data including those on behavior,

attitude awareness, satisfaction level etc. The key point here is that the data you collect isunique to you and your research and, until you publish, no one else has access to it.

Degree of Structure: -Structured and indirect (close ended questions)

Mode of primary data collection: - Internet

b. Secondary data: Secondary data has been obtained from the internet.

Secondary data analysis saves time that would otherwise be spent collecting data and,

7. QUESTIONNAIRE DESIGNING

Following are the factors determine Questionnaire designing:-

1) Objective of the research: - Structured questions of dichotomous or the multiple choice

questions are most suited for information needed on the behavior. They provide satisfactory

answer of the what, when, how, how much, aspects of the information.

2) Sampling unit: - The demographic characteristics of respondents such as age, occupation

should be taken into consideration while making questionnaire.

3) Data collection method: - Data collection method also decides how many and what

structured questions should be ask. Online survey gives us flexibility of asking numbers ofquestions but these questions should be self explanatory as chances of misinterpretation of

questions on internet survey are high.


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DATA ANALYSIS AND INTERPRETATION

The process organization, and interpretation of numerical data, especially the analysis of

population characteristics by inference from sampling is known as Data Analysis and

Interpretation.

The world is full of observations that can be made, but not every observation constitutes a useful

piece of data. All scientists make choices about which data are most relevant to their research

and what to do with that data: how to turn a collection of measurements into a useful dataset

through processing and analysis, and how to interpret those analyzed data in the context of what

they already know. The thoughtful and systematic analysis and interpretation of data allow it to

be developed into evidence that supports scientific ideas, arguments, and hypothesis.

Proportion Test

Proposed Hypothesis : More than 50% buyer of family pack products buy family sized pack overnormal pack it because of discounts.

Null hypothesis Ho= 50% buyer of family pack products buy family sized pack over normal pack itbecause of discounts.

P=.50Alternative

Hypothesis

Ha= More than 50% buyer of family pack products buy family sized pack over normal

pack it because of discounts.

P>.50

Tail Right tailTest Proportion test

Alpha 0.05

Probability 0.95

Out of total 58 family pack users, 27 consumers opted for family pack because of discounts which they get.

Z obs.=(p'-p)/sqrt(p.q/n)

n x p p' q Z critical Z observed

58 27 0.5 0.47 0.5 1.64 (0.53)

Z observed lies in acceptance region.

We accept null hypothesis.

Therefore 50% or not more than 50% buyer of

Z cri.=1.64Z Obs=-.53

Rejection regionAcceptance

region


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family pack products buy family sized pack ovenormal pack it because of discounts.

2)Chi Square test

Proposed Hypothesis: Amount spend on the purchase of family pack sized product isdependent on the size of the family

Null HypothesisHo=

Amount spend on the purchase of family pack sized product is independent on thesize of the family

AlternativeHypothesis Ha=

Amount spend on the purchase of family pack sized product is Not independent onthe size of the family

Tail Right tail

Test Proportion test

Alpha 0.05

Probability 0.975

Observed Monthly amount spend on the purchase of family pack product


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=4.40

F (Observed)= X2= (fo-fe)^2/fe 20.51

P value= 0.06P > Alpha Therefore we reject null Hypothesis.

Also F observed lies in the rejection region. Therefore we accept alternative Hypothesis.

Therefore Amount spend on the purchase of family pack sized product is Not independent on the size ofthe family

3)ANOVA

Proposed Hypothesis : There is no significant difference in the male and female while selectingfamily pack over small pack.

For Reasons

Null hypothesis Ho: There is no significant difference in the 'reasons for selecting family pack oversmall pack'.

AlternativeHypothesis

Ha : There is significant difference in the 'reasons for selecting family pack over smalpack'.

For GenderNull hypothesis Ho: There is no significant difference in the gender while selecting family pack

over small pack.

Non rejectionregion

Rejection

region

F crit. = 4.40F obs.= 20.51


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AlternativeHypothesis

Ha : There is significant difference in the gender while selecting family packover small pack.

Gender

Female Male

Reasons forselecting familypack over smallpack

Attractive packaging and look 0 6Discounts 9 18

Ease of purchasing 6 19

Test - ANOVA: Two-Factor Without Replication

Alpha = .05

SUMMARY Count Sum Average Variance

Attractive packaging andlook 2.00 6.00 3.00 18.00

Discounts 2.00 27.00 13.50 40.50

Ease of purchasing 2.00 25.00 12.50 84.50

Female 3.00 15.00 5.00 21.00Male 3.00 43.00 14.33 52.33

ANOVA

Source of Variation SS df MS F P-value F crit

Rows(Reasons) 134.33 2.00 67.17 10.89 0.08 19.00

Columns(Gender) 130.67 1.00 130.67 21.19 0.04 18.51Error 12.33 2.00 6.17

Total 277.33 5.00

For ReasonsP value(.08) > Alpha(.05)

F cri.=19

Rejection regionAcceptance

re ion


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F critical(19.00) > F observed(10.89)

Therefore F observed lies in the acceptance region. Therefore we accept the null hypothesis.There is no significant difference in the 'reasons for selecting family pack over small pack'.

For Gender

P value(.04)< Alpha (.05)

F critical(18.58)


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Conclusion

From the first Hypothesis testing we can conclude that half or more than half of the people buy family

pack size product not because of discounts. There may be different reasons for these consumers to select

family pack size over normal pack. Which also supported by our last hypothesis testing which result stated

that there is no significant difference in the reasons for selecting family pack over small pack? Thats

why companies should not only positioned their family pack sized product as discounted product but also

can promote differently like currently lays promoting Lays Party Pack. Lays tries to relate its large packet

of lays chips with enjoyment with sharing, partying.

Whereas with PepsiCo Indias impeccable record of innovations, Mirinda introduced Home Pack for theentire family, Priced at an amazingly affordable price of only Rs 32/- for a proprietary 1-litre PET bottle.Mirinda tries to associate itself with family as well as affordability.

Also the amount spend on the family pack size product is also dependant on the size of the family. Because

families with fewer numbers of individuals, may not needed that big quantity of product. So they may be

buying small sized product.

One of the conclusion we drawn from the hypothesis testing is such that There is significant difference in

the gender while selecting family pack over small pack. Because there is different psychological factorsaffects the buying behavior of both male and female. One factor which motivate female, may not influence

on males buying behavior.

Limitations

a) Geographical limitation: Our survey has limited to two locations viz Virar and Thane and Mumbai

b) Sample size is limited to sixty three. Due to time constrain and limited resources, we are unable to

expand our sample size.

Documents

Are Indian Customers Ready for Family Pack Sized Product Edited