Marketing Project on customer decision analysis

8/9/2019 Marketing Project on customer decision analysis

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XAVIER INSTITUTE OF MANAGEMENT

BHUBANESWAR

Research Proposalon

Consumer Decision Analysisfor

Purchase of Fruit DrinksAt Bhubaneswar

Presented by

Manas Ranjan Mohapatra - U409016Sidhartha Ray - U409029Rajesh Saha - U409024Mohan Kumar Panda - U409018


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Executive Summary

This project aims to find out the various factors influencing the consumer decision whilemaking a purchase of a fruit drink in the age group of 19-30 in the city of Bhubaneswar.Background talks about various factors that have led us to undertake this study and howand to whom this report will benefit. Objectives talks of types of data the researchproject will generate and how these data is relevant. A statement of value of informationis also included in this section. Research approach gives a non technical description ofthe data collection method, measurement instrument, sample and analytical techniques.

The beverage market in India is worth 2074.67 Million INR. Though the major portion ofthe market is still dominated by the carbonated soft drinks there is major shift towardsthe Juice segment. There was a growth of 31.52% in the Juice segment from 2009 to2010. As a result of this phenomenal growth, a lot of competition has entered themarket. A number of new brands have flooded the market. The competition from Indianbeverages such as Sugarcane Juice, Buttermilk, and Fresh Juices etc has alsocaptured a sizeable share of the market.

Due to these changes in the beverage market there is a need to identify and evaluatethe reasons for the shift in the consumer purchasing pattern. This study aims todetermine the factors influencing the consumer decision while buying fruit drinks in the

age group 19-30 in the city of Bhubaneswar.

We also need to study the factors that are now driving the consumers purchasingdecision. Also, due to the increase in the competition there is a need to determine theawareness levels for the various brands amongst the consumers. With the availability ofa number of channels of distribution for the beverages in India, We will also try toidentify the most preferred shopping channel of beverages for a consumer.


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Contents

Objectives

Research Approach

Data collection methods

Measurement Instruments

Samples

Analysis Techniques

Factor Analysis

CrossTabs

Correlation

Conclusion

Annexure

Perceptual Maps

Questionnaire


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Objectives

Primary research objectiveTo determine the factors influencing the consumer decision while buying fruit drinks inthe age group 17-30 in the city of Bhubaneswar.

Secondary research objectiveyTo determine the product attributes influencing purchase decision of fruit drink brands.yTo determine the reasons for consuming various fruit drink brands.yTo determine the most preferred SKU(quantity) in fruit drink category.yTo determine the most preferred channel in the fruit drink category.

Data which research plans to generateyFactors influencing the choice of fruit drinks over other beverages.yFactors influencing choice of a particular fruit drink brand.yFactors influencing the choice of a particular channel in fruit drink category.


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Value of Information to Management

This report aims to generate information on various factors influencing consumer

decision while purchasing a fruit drink. Companies can utilise this information foridentifying the awareness levels of their respective brands in the fruit drink category.

Also companies can evaluate their positioning and promotion strategies based on thefactors influencing the choice of a particular fruit drink brand. Companies can also utilisethe factors influencing the choice of SKU for managing their portfolio of different SKUsin the fruit drink category. The information on factors influencing the choice of a channelcan be used to focus on the growing channels and also in managing existing channels.This report also contains broad based trends on consumer profile, awareness levels,usage patterns and fruit drink category as a whole which can be utilised to makeinferences about the future.

Research A pproach

Data collection methods

a) Secondary Research

External secondary data has been generated to obtain volume of sales regardingbeverage markets, fruit drinks, each of the brands and the positioning of each of the

brands.

b) Survey Research

y Data was collected from candidates using questionnaire. The questionnaire wasdistributed in colleges and people on the street.

y We distributed the questionnaires outside the shops to gather data from peoplewho had come to visit there.

y We made an online questionnaire and circulated on the internet and gatheredresults from those.


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Measurement Instruments:

y The measurement instrument in the questionnaire was a five point Likert scale.

y Apart from details regarding their choice of drink for refreshment, their frequencyof visits and the channels they choose, their spending patterns will also bemapped.

y The data was extracted and put in MS Excel. All the further analysis was thencarried out using SPSS.

y The measurement was designed to get a fair idea about the various attributesand conducted factorial analysis of the important attributes.

Samples

The aim was to collect 100 samples for the analysis. The samples should be such thatthey are consumers of fruit drinks. We also tried to get an adequate ratio of men andwomen in the samples. The main demographics targeted were the younger age groupas they are more health conscious and aware of such health drinks. Also we tried tofocus more on the college going crowd and young professionals as they would be moreinterested in trying out new products and were more conscious. Buyers who have beenconsuming fruit drinks were better able to answer the questions regarding theinfluencing factors and the reasons for their consumption and purchase. The samplescollected from internet have also been very valuable in the research.

Analysis Techniquesy The analysis techniques used have been on SPSS and the tests were performed

to ascertain the factors influencing the consumer decision while buying fruitdrinks.

y Factor analysis was conducted to discern out of the 13 factors mainly whichfactors influence the buying habits of the consumers. Ultimately we identified 5factors which mainly have an influence.

y We also conducted correlation tests to find out the various reasons forpurchasing any particular brand of fruit drink.

Limitations:y The main limitation is the sampling conducted. It was done in a random manner

and no particular technique followed. In the first survey a greater number ofcollege students have been surveyed. The data might not be representative ofthe entire population.

y Various statistical techniques as learned have been implemented andconclusions as best possible have been drawn making few assumptions as andwhen required.


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y Since no data was on interval or ratio scale it was not feasible to conductRegression and ANOVA.

Factor Analysis

The Perceptual mapping for various factor recognized:


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The factors recognized after the factor analysis are as under:

Factor 1: Health and Hygiene

1. Packet cleanliness2. Nutrition Value3. Expiry Date

Factor 2: Media Influence

1. Promotion Schemes2. Brand Value3. AD Frequency

Factor 3: Convenience

1. Range of flavors2. Availability

Factor 4: Product Features

1. Price2. Flavor

Factor 5: Package Design

1. Visual Packaging

Attributes those were not important:

1. Brand Ambassador2. Quantity Available

y The perceptual maps show the mapping of different factors in the minds of thecustomers and the association between them. The data was reduced from manyattributes to 5 factors that have similar attributes.

y The various factors mapped according to the rotated results of factor analysis.The factors were given names based on the attributes in them. These factorswere used to form the factor analysis where two factors were mapped on X andY axis to know the relation between them.

y The factors help the company to know how the product is currently mapped in


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the customers mind. If a target consumer is focused upon then the factors canbe changed and a different map can be formed.

y The attribute brand ambassador and package sizes available are not amajor attribute in any of the factors. This justifies the fact that almost all the

major fruitdrinks are not endorsed by any of the big brand ambassador barring a

few such as minutemaid pulpy orange (Nikhil Chinappa ) . Also the variety of thepackage sizes available is not affecting the consumer decision while making apurchase for fruit drinks.

CrossTabs

1. PURCHASE FREQUENCY VS SKU PREFERRED

Since p value is less than alpha i.e. .05 (95% confidence level), therefore h0 is rejected.This shows that there is high association between purchase frequency and SKU orquantity packs. This is an indication of the fact that people preferring smaller SKUsusually purchase more as compared to others. Thus high association between purchasefrequency and SKU (pack sizes ) is established .


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Since p value is greater than alpha i.e. o.05 (95% confidence level), therefore there isno association between purchase frequency and gender.


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3. CHOICE OF CHANNEL VS FACTORS AFFECTING CHOICE OF CHANNEL

Here p value is less than alpha i.e. 0.05 (95% confidence level) therefore Ho is rejected.This shows that there is high association between choice of channel and factorsaffecting the choice of channel. This gives an indication such that those people whoconsider availability and nearness as their factor affecting the choice of channel mightprefer buying fruit drink from retail stores or grocery stores. Thus a high association isestablished.


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CROSSTABS OF PURCHASE FREQUENCY VS REASONS FOR HAVING FRUITDRINKS

We conducted crosstabs of purchase frequency with the scores /ranking given byvarious respondents to the various reasons for drinking fruit drinks such as socialisation,refreshment, enjoyment, mental lift, attitude, basic thirst, taste etc. out of all thesecrosstabs association was found between two cases. The two cases have been givenbelow:

1. PURCHASE FREQUENCY VS REFRESHMENT

Since p value is less than alpha (95%) therefore there is high association betweenpurchase frequency and basic thirst /filling purpose. This might be an indication of thefact that people drinking fruit drinks for basic thirst / filling purpose generally buy moreas compared to others.


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Correlation

Correlation of the various brands (i.e. Appy, Real, Tropicana etc) was done with variousreasons for drinking such as refreshment, enjoyment, vitality, mental lift etc. We tried toidentify the various reasons that are correlated with various brands .This activitybasically helped us in identifying the perception and connotations of people towardsvarious fruit drink brands.

Following are some of the inferences that We established after conducting thecorrelation analysis.

1. There was a significant correlation between brand Real and the followingreasons for drinking :

yHealth

yEnjoyment

yAttitude

2. There was a significant correlation between brand Tropicana and the followingreasons for drinking :

yHealth

yEnjoyment

3. There was a significant correlation between brand Maaza and the followingreasons for drinking :

yAttitude

4. There was a no correlation between brand Slice and the various reasons fordrinking.

5. There was a significant correlation between brand Appy and the followingreasons for drinking :

ySocialising

6. There was a significant correlation between brand Frooti and the followingreasons for drinking:

yTaste

yMental lift

7. There was a significant correlation between brand Mangola and the followingreasons for drinking :

yTaste

yMental lift


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8. There was a significant correlation between brand Pulpy Orange and thefollowing reasons for drinking :

yAttitude

9. There was a significant correlation between brand Twister and the following

reasons for drinking:yTaste

yMental lift

10. There was a significant correlation between brand Others (ex. Lehberry etc.) andthe following reasons for drinking :

yAttitude

yBasic thirst


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Conclusion

On the basis of the data collected and the tests conducted we have arrived at thefollowing conclusions:

With the help of correlation we was able to identify the attributes that consumersassociate with the various fruit drinks and which in turn drive their purchase decision forthe same.

For example Tropicana is associated with health and enjoyment whereas Appy isassociated with socialising. These reflect the perceptions of the various fruit drinks inthe mind of the consumers.

The crosstab between purchase frequency and SKU showed that those purchasingsmaller SKUs purchase more frequently as compared to those who purchased a 500mlor 1litre. On the other hand there is no impact of gender on purchasing frequency forfruit drinks.

There is a high association between the channels preferred and the factors affectingthese channels. The most important factor came out to be location or nearness of thechannel.

There is also a high association between purchase frequency and reasons forconsuming fruit drinks such as refreshment and fulfilling basic thirst.

In factor analysis we found out 5 factors which mainly have an impact on the purchaseof a fruit drink. There were two factors which did not have any significant impact.

Also, we found out that the most preferred channel for purchase in retail stores. Themost preferred SKU is 200ml packs which could be due to convenience.

The most preferred drink is Frooti followed by Tropicana and Real.


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Questionnaire:

1. Whom do you buy fruit drinks for? (Tick one)

a) Myself

b) Familyc) Childrend) Institutional purposes / social occasions

2. How often do you have a fruit drink?

a) 1-3 times a weekb) 4-6 times a weekc) More than 6 times a weekd) Rarely (fortnightly )

3. What quantity do you usually prefer to buy?

a) 200-250 ml (Tetrapak)b) 300 mlc) 500 ml bottled) 1 litre

4. Through which medium did you come to know about your preferred fruit drink brand?

a) Hoardings and bannersb) Newspaper and magazines

c) TV

/radiod) Word of mouthe) Others ..

5. Do the following reasons influence your consumption of fruit drinks?

REASONS Stronglydisagree

Disagree Neitheragree nordisagree

Agree StronglyAgree

For social

occasions /entertainment

It acts as arefreshment

It providesenjoyment

It tastes verygood


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It satisfiesmy basicthirst and isfillingI feel a sense

of wellbeing afterconsumingit

It gives mevitality andenergy

It relaxes mementally

It reflects myattitude

6. Rank the following fruit drinks from 1 to 5, with 1 being least preferred and 5 beingmost preferred:

a) Real b) Tropicana c) Maaza d) Slice e) Appy f) Frooti g) Mangola

h) Pulpy orange i) Twister j) Others


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7. How important are the following factors for purchasing a fruit drink?

FACTORS Very lessimportant

Lessimportant

NoInfluence

Important VeryImportant

Flavor

No. of flavorsAvailability andConvenience

Price

Cleanliness ofpacket/ notdamaged

Manufacturing date/expirydateFrequency of

advertisementBrand ambassador

Nutritional value/caloriecontent

Brand value /brandname

SKUs available

Promotionschemes/discounts

Visual appeal of

packaging

8. Which is your most preferred channel for purchasing a fruit drink?

a) Retail store/grocery storeb) Supermarket/hypermarketc) Cineplexd) Pan shop/kioskse) Restaurantsf) Travel

g) Others.


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9. Which is the most important characteristic for choosing the channel?

a) Pricingb) Ambiencec) Location/ nearness

d) Servicee) Display /merchandisingf) Reputationg) Occasionh) Others

Personal Details

1. Agea) 17-20b) 21-24c) 25-28d) 29 and above

2. Gender:a) Maleb) Female

3. Educationa) High schoolb) Undergraduatec) Graduated) Postgraduatee) Others

Documents

Marketing Project on customer decision analysis