Market Research Project- Potato wafers

Presented by : Group 4

Aparajita Sen

Jaskaran Singh

Megha Gupta

Subhasish Das

Sunita Chakraborty

Agenda

Methodology

Analysis of the survey questions

a. Hypothesis I

b. Hypothesis II

Recommendations

Methodology

• Product category of our research :

Potato Wafers

• Target group we selected :

Age 18-25 yrs

Profession - Undergraduates/Postgraduates students

• Objective of the research :

I. To understand the market penetration of potato wafers in India

II. To Understand what strategy is being followed by market leader & its competitors

III. To understand the purchasing behaviors of potato wafers

IV. To analyze whether there is enough scope for new entrants in the market

Research design :

For our research survey we undertook non-probability sampling,

under which following is the sampling techniques we utilized: Sample Size

From the recruitment question we understood that the penetration for potato wafers in our TG is more that 95% ,hence we took a sample of size 120 to do an in depth analysis

Quota sampling -

We selected our target group by dividing them into two strata's

of Males(60) & Females(60), after which we used convenience

sampling as sampling technique for further research

Q1.Which brand comes to your mind when you think of potato chips?

83%

9%

3% 3% 2%

TOM

Lays

Uncle chips

Bingo

Pringles

Others

Analysis of the survey questions

Q2. Which other brands of potato wafers are you aware of?(Spontaneous)

Lays Bingo Uncle chips Others0

10

20

30

40

50

60

70

80

No. of people spontaneously naming potato wafers brand

No. of people

Q2.Are you aware of these / brands of potato wafers?(Awareness)

Pringles

Uncle Chips

Hot Chips

Lays

Pran

Bikaji Chips

Parle Wafers

0 20 40 60 80 100 120 140

No. of people aware of a particular brand

No. of people

Q4.What compels you to consume a particular brand of potato wafers?

2%

3%1%

12%

16%

4%

63%

AttributesCelebrity Endorsement

Quantity

Price

Variants

Quality

Brand name

Taste

We clearly see that taste is by far the leading factor which compels a consumer to consume potato wafers

Q5. When do you usually have potato wafers?

Sports

gam

e

After l

unch

Friends g

ather

ing

Celebra

tion

Exam

pre

parat

ion

In a

sad m

ood

In a

good

moo

d0

20

40

60

80

100

120

Different occasions

Number of people

Contd.

Looking at the advertisements Lays has been successful in showcasing friends gathering , a good mood and

sports game as an occasion to have potato chips especially lays For Uncle chips their TG is of the age group below 18 years and they tried to

showcase good mood as one of the occasion’s to have potato chips For Bingo, we observed that one of the most preferable occasions to have

potato chip is in sad(bored) mood.

Q6. How many times do you / consume following brands of potato wafer

Pringles

Uncle Chips

Lays

Unbranded Local chips

0 10 20 30 40 50 60 70

Bar chart showing the buying behaviour of the people

Once in a month Once in fortnight Once in 5 days Daily Never

Contd..Analysis• Being a High priced brand most of the people have never

tried Pringles ,while 2/5th of the sample consume it once a month

• For Uncle Chips 1/3rd of people consume it once a month

• Lays is consumed once in 5 days by ½ of the sample

• ½ of the sample has never tried unbranded local chips ,while around 1/3 of the sample consumes it once a month

Q7. Which of the following is your most often consumed?

Uncle chips10%

Lays85%

Others5%

Pie chart depicting the MOUB in the potato wafer market

Uncle chips Lays

Others

We clearly see that lays has the highest market share in our TG followed by Uncle Chips

Brand Funnel

Awareness-72% Awareness-96% Awareness-98%

Trial-64% Trial-100%Trial-81%

MOUB-4% MOUB-13% MOUB-85%

Pringles Uncle Chips Lays

Loyalty-86%Loyalty-75%Loyalty-60%

Q8.Within your last 5 purchases of potato wafers, how many times have you purchased the brand answered in

the previous question?(Question 7)

Number of purchases out of the last five purchases

Frequency

Once 6*1=6

Twice 9*2=18

Thrice 22*3=66

Four times 36*4=144

Five times 29*5=145

Total 379

Behavioural Loyalty (379/510)*100=74.31%

Behavioural Loyalty of Lays

Q9.If the brand mentioned in Question number 7 is

unavailable in the shop then would you..

42%

33%

25%

Uncle Chips

53%40%

7%

Lays Purchase potato wafers of another brand

Go to another shop

Won’t purchase anything

If we observe the two major brands lays and uncle chips we observe a switching possibility. In lays we see almost 53% of people said that they would buy wafers of another brand whereas in uncle chips almost 41.67% said that they are ready to switch.

Q10. Please allocate 100 points among the attributes so that your allocation reflects the relative importance you attach to each attribute

Constant Sum Scale-Measuring the mean score

19.23

20.25

24.84

28.53

Pringles

42.98

44.6234.49

35.13

Lays

23.62

19.2422.45

23.29

Uncle chips

14.15

15.8318.29

13.12

Unbranded local chips

Variants

Taste

Healthy

Packaging

Contd. The overall score for Lays is the highest while for Unbranded local it the lowest According to the survey when comparing all other attributes for each brand

-Packaging is the strength for Pringles

-Variants and Taste are the strength for Lays Based on the overall score Lays has the highest overall brand score while

Unbranded local chips has the lowest brand score While correlating the data for the different attribute within each brand we see

that

- The correlation between Health and Packaging is high for Pringles(0.60) , Lays(0.64) and Uncle Chips(0.61) while it is very low local unbranded chips

- For Lays the correlation between variants and taste(0.69) is very high Pringles and Uncle chips should concentrate only on communicating any one of

the attribute(Health and Packaging) in its advertisement as there is a high chance of people relating it with the other attribute.

While for Lays it should advertise more for any one of the two attributes(Variants and Taste).

Q11.An improvement in packaging of the unbranded local chips will lead to an increase in its consumption

Strongly Agree(5)

Agree(4)

Neither Agree Nor Disagree(3)

Disagree(2)

Strongly Disagree(1)

0 5 10 15 20 25 30 35 40 45

5

37

31

39

8

No. of people

Hypothesis 1-An improvement in packaging of the unbranded local chips will lead to an increase in its consumption

• Mean Score-2.94

• Standard Dev-1.034

• Looking at the mean score and the mode depicted in the

previous Bar chart we fail to accept our Null hypothesis.

People think that improving packaging will not improve

the consumption of Unbranded local chips

Q12.Bingo's advertisements are more appealing than that of Lay

Strongly Agree(5)

Agree(4)

Neither agree nor disagree(3)

Disagree(2)

Strongly Disagree(1)

0 10 20 30 40 50 60

7

51

36

19

7

Number of people

Number of people

Hypothesis 2-Bingo's advertisements are more appealing than that of Lays

• Mean score – 3.27

• Standard Deviation- 0.99

• If we see the mean score (with a low standard deviation )

and the mode we can conclude that most of the people find

Bingo’s advertisements are more appealing than that of

lays. Hence we accept the null hypothesis

Recommendations

• We see that none of the potato wafers company has communicated that a celebration and an examination can be an occasion to have potato wafers. Hence any new brand can enter the market by using these characteristics of potato wafers industry

• We see that the behavioral loyalty for lays is very high but from perceptual loyalty we see that if Lays is not available then there is a high chance of people switching to another brand. So it becomes very important for lays to keep the availability very high

• We had analyzed that the attribute which compels to buy a particular brand and the occasions on which we have potato wafers were common across male and female. Thus the brands need not differentiate the marketing strategies between male and female for our TG

Contd.

Availability of the brand should be stronger

More interesting ads with local celebrities

Creating packs and promoting in special festival occasions

Introducing smaller packs at a low price

Freebies in large packs Keeping updated consumer with

new updates and activities about the product in Facebook , Flickr

MOUB LOYALTY

Pringles

THANK YOU