Market Research Project -For Here Take Food

Presented by :Susan Koshy Kandathil .

CONTENTS

Acknowledgment About the research Objectives of the project Approach implemented Questionnaire format Analysis NoteConclusion Biblography

Acknowledgment I would like to thank the following people who were instrumental in the completion of this project :•Agratha Dinakaran & Amith Krishnan for guiding me through every step in the execution of this project and for being flexible with the deadlines .•Prof Ashish Shah and Prof Rahul Gupta for solving my various queries with regard to this project .•CJ Daniel for helping me with the analysis .•George Koshy ,Mathen Koshy , Kareena ,Rajeev Pillai , Aswin Prathap ,Shaheel Ali & Arvind Tripathy for helping me in getting participants for the survey .

Topic : Consumer buying behavior in purchase of

sports / rejuvenating drinks .

About the research

Time duration :1st April 2013 – 10th May 2013 .Number of participants – 451Number of response used for the survey - 400Location of survey – Bangalore Target audience – Niche market Sec A1, A2 , A3 , B1 .

Sampling technique used :

•Simple random sampling method have been used and the p value approach has been used to test the hypothesis .•First the standard deviation for 400 respondents was calculated •Then a sample size of 40 was selected from the total population ,out of which grades were given to each answer ranging form 1-5.•Confidence interval of 95% with a margin of error 5% was used for analysis on three key questions .

Objectives of the Survey Main objective: To find out if the product will sell ?If yes ,what price the company should look at .To determine the market acceptance for sports/rejuvenating drinks .What price the potential customers are willing to pay ?Does the market accept that the various rejuvenating drinks offered in the market are refreshing ?Is the target market willing to pay premium price ?

Method used to execute the survey Offline mode :105 questionnaires were filled out by distribution ,out of which 95 was distributed in MP Birla Management School and 10 were filled out by bystanders and shoppers near RT nagar bus stand ,near Food World .Online mode : 346 questionnaires were filled out online .The link to the questionnaire were sent out to e-mail contacts , posted in various food related pages on Facebook . The highest response was received when the link was sent as a personal message to friends who appeared online in the chat box .

Questionnaire Sports/rejuvenating drink - A myth or a fact ?I am a student of Christ University, as part of my Live project, I am conducting a study on “Factors Affecting Consumer’s Willingness / purchase intentions towards sports drinks". I would like to ask for your participation in this study by completing this survey and submitting it to the designated secure virtual location. Please answer each question as honestly as you can, since there is no way anyone would ever know how you have answered the questions. THANK YOU! •Required

Name *Mobile No:Email Id *Sex *• Male• FemaleEducation *• High School Degree • Secondary School Degree • Under Graduate Degree • Post Graduate Degree 

City of residence *• Bangalore• Delhi• Mumbai• Chennai• Hyderabad• Kolkata• Other: Age *• 20-25• 25-30• 30-35• 35-40• 40-45• > 45What’s your approximate annual gross household income ? *• Below Rs 3,00,000• 3,00,000 - 5,00,000• 5,00,000 - 10,00,000• 10,00,000 - 15,00,000• Above 15,00,000Do you think the various rejuvenating/sports drinks (Ex: Gatorade ) offered in the market recharge you ? * Yes No 

How often do you purchase rejuvenating drinks ? *• Very frequently! My fridge is always stocked up.• Frequently,mostly before/after my usual workout, walks or sports activities• Occasionally on a hot day. or for mixing at a parties, in case of running a marathon or participating in a tournament.• Rarely, maybe a few times a year.• NeverWhat factors would tempt you to try out a new brand of sports/rejuvenating drink? *• Competitive pricing and high quality attractive packaging• Nutritional benefits/all natural healthy products as compared to other brand• I like to try out new products from time to time. If I see a new product I might pick it up.• Only if the other brands are not available .• Only if I have heard/seen ads about the product.Would you pay a premium price for a drink which is healthier and all natural compared to other brands? *• Yes • No How much would you be willing to pay for a naturally refreshing drink ? *• Rs 35 - Rs 50 • 51 - 75• 76 - 100 • 101 - 130• > 130

Analysis of the Survey .

Gender ratio of respondents Male 241 59%Female 169 41%

Education High School Degree   5 1%Secondary School Degree  5 1%Under Graduate Degree  192 43%Post Graduate Degree  249 55%

City of residence Bangalore 306 75%Delhi 7 2%Mumbai 7 2%Chennai 14 3%Hyderabad 8 2%Kolkata 5 1%Other 63 15%

Please Note :Many respondents who are current residents of Bangalore have marked the location as per their home city .

Age 20-25 344 91%25-30 23 6%30-35 6 2%35-40 1 0%40-45 0 0%> 45 6 2%

Approximate gross household income Below Rs 3,00,000 130 29%3,00,000 - 5,00,000 123 27%5,00,000 - 10,00,000 107 24%10,00,000 - 15,00,000 52 12%Above 15,00,000 39 9%

Please note : Majority of the respondents who marked Below Rs 300000 are students who have not considered family income while selecting the options .

Test to check validity of the responses .Below Rs 3,00,000 - 29.5% - .5% increase 3,00,000 - 5,00,000 - 22.7% - 4.3 % decrease 5,00,000 - 10,00,000 - 22.7% - 1.3 % decrease 10,00,000 - 15,00,000 -13.6% - 1.6% increase Above 15,00,000 - 11.5% - 2.5 % increase

Do you think the various rejuvenating / sports drinks (Ex:Gatorade ) offered in the market recharge you ?Yes 217 48%No  236 52%

Please Note :As per observation this question could have been more specific with regard to the nutritional benefit the drink offers in order to obtain a favorable result .

Test to check validity of the responses . Out of a random sample of 43 (First 20 and last 23 )

Yes - 46% - 2% decrease No - 54% - 2% increase

How often do you purchase rejuvenating drinks ?

Very frequently! My fridge is always stocked up. 12 3%Frequently,mostly before/after my usual workout, walks or sports activitie 47 11%Ocassionaly on a hot day. or for mixing at a parties ,in case of running a marathon or participating in a tournament .142 35%Rarely, maybe a few times a year. 14 4 35%Never 65 16%

Test to check validity of the responses .Sample of 40 was taken from the first 40 responses Very frequently! My fridge is always stocked up. .25% - .75% decrease Frequently, mostly before/after my usual workout, walks or sports activities 5% - 6% decrease Occasionally on a hot day. or for mixing at a parties ,in case of running a marathon or participating in a tournament 30% - 5% decrease Rarely, maybe a few times a year. 47.5% - 11.5% increase Never 15% - 1.25% decrease

What factors would tempt you to try out a new brand of sports /rejuvenating drink ?Competitive pricing and high quality attractive packaging 19 9%Nutritional benefits/all natural healthy products as compared to other brand . 91 42%I like to try out new products from time to time. If I see a new product I might pick it up. 49 23%Only if the other brands are not available. 15 7%Only if I have heard/seen ads about the product 43 20%

Would you pay a premium for a drink which is healthier and all natural compared to other brands ?

Yes  337 75%No  114 25%

Test to check validity of the responses .A sample of 44 was taken from the last 44 responses .Yes – 75 % - 0 % change No - 25 % - 0% change

How much would you be willing to pay for a naturally refreshing drink ?

Rs 35 - Rs 50  247 58%51 – 75 96 23%76 - 100  63 15%101 – 130 11 3%> 130 9 2%

Test to check validity of the responses .Rs 35 - Rs 50  - 56% - 2% decrease 51 – 75 - 14% - 9% decrease 76 - 100  - 23 % - 8% increase 101 – 130 - 7% - 5 % increase > 130 -0% - 2% increase

Note Please refer to the Excel document – Analysis 1- to see the result of hypothesis testing .Response version 1 – document referred for validating the test .Response version 2 – updated document of responses SD version 1- document referred for finding standard deviation of responses .Google analysis version2 – updated analysis for your refrence.

Concluscion As per the survey conducted , it can be concluded that consumers are willing to buy sports/ rejuvenating drinks at a premium price if it is all natural as compared to other drinks offered in the market . The most important factor for purchase will be the nutritional benefits offered by the drink followed by advertisement and competitive pricing .The market for the drink would be between the age group 20 – 45 years and the sales would be determined also by how the company position the product in the market .

Biblography Research Methodology –Concepts and Cases (by Deepak Chawala & Neena Sondhi .)