SYMBIOSIS INSTITUTE OF BUSINESS MANAGEMENT, PUNE Research Proposal on Consumer Decision Analysis for Purchase of Fruit Drinks Name : Protik Basu Specialisation: Marketing (MBA – II) Roll No. : 30164
Executive SummaryThis project aims to find out the various factors influencing the consumer decision while makinga purchase of a fruit drink in the age group of 19-30 in the city of Pune. Background talks aboutvarious factors that have led us to undertake this study and how and to whom this report willbenefit. Objectives talks of types of data the research project will generate and how these data isrelevant. A statement of value of information is also included in this section. Research approachgives a non technical description of the data collection method, measurement instrument, sampleand analytical techniques.The beverage market in India is worth 2074.67 Million INR. Though the major portion of themarket is still dominated by the carbonated soft drinks there is major shift towards the Juicesegment. There was a growth of 31.52% in the Juice segment from 2007 to 2008. As a result ofthis phenomenal growth, a lot of competition has entered the market. A number of new brandshave flooded the market. The competition from Indian beverages such as Sugarcane Juice,Buttermilk, and Fresh Juices etc has also captured a sizeable share of the market.Due to these changes in the beverage market there is a need to identify and evaluate the reasonsfor the shift in the consumer purchasing pattern. This study aims to determine the factorsinfluencing the consumer decision while buying fruit drinks in the age group 19-30 in the city ofPune.I also need to study the factors that are now driving the consumer’s purchasing decision. Also,due to the increase in the competition there is a need to determine the awareness levels for thevarious brands amongst the consumers. With the availability of a number of channels ofdistribution for the beverages in India, I will also try to identify the most preferred shoppingchannel of beverages for a consumer.
ObjectivesPrimary research objectiveTo determine the factors influencing the consumer decision while buying fruit drinks in the agegroup 17-30 in the city of Pune.Secondary research objective• To determine the product attributes influencing purchase decision of fruit drink brands.• To determine the reasons for consuming various fruit drink brands.• To determine the most preferred SKU(quantity) in fruit drink category.• To determine the most preferred channel in the fruit drink category.Data which research plans to generate• Factors influencing the choice of fruit drinks over other beverages.• Factors influencing choice of a particular fruit drink brand.• Factors influencing the choice of a particular channel in fruit drink category.
Value of Information to ManagementThis report aims to generate information on various factors influencing consumer decision whilepurchasing a fruit drink. Companies can utilise this information for identifying the awarenesslevels of their respective brands in the fruit drink category. Also companies can evaluate theirpositioning and promotion strategies based on the factors influencing the choice of a particularfruit drink brand. Companies can also utilise the factors influencing the choice of SKU formanaging their portfolio of different SKUs in the fruit drink category. The information on factorsinfluencing the choice of a channel can be used to focus on the growing channels and also inmanaging 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 tomake inferences about the future. Research ApproachData collection methods a) Secondary ResearchExternal secondary data has been generated to obtain volume of sales regarding beveragemarkets, fruit drinks, each of the brands and the positioning of each of the brands. b) Survey Research • Data was collected from candidates using questionnaire. The questionnaire was distributed in colleges and people on the street. • I distributed the questionnaires outside the shops to gather data from people who had come to visit there. • I made an online questionnaire and circulated on the internet and gathered results from those.Measurement Instruments: • The measurement instrument in the questionnaire was a five point Likert scale.
• Apart from details regarding their choice of drink for refreshment, their frequency of visits and the channels they choose, their spending patterns will also be mapped. • The data was extracted and put in MS Excel. All the further analysis was then carried out using SPSS. • The measurement was designed to get a fair idea about the various attributes and conducted factorial analysis of the important attributes. SamplesThe aim was to collect 100 samples for the analysis. The samples should be such that they areconsumers of fruit drinks. I also tried to get an adequate ratio of men and women in the samples.The main demographics targeted were the younger age group as they are more health consciousand aware of such health drinks. Also I tried to focus more on the college going crowd andyoung professionals as they would be more interested in trying out new products and were moreconscious.Buyers who have been consuming fruit drinks were better able to answer the questions regardingthe influencing factors and the reasons for their consumption and purchase. The samplescollected from internet have also been very valuable in the research. Analysis Techniques • The analysis techniques used have been on SPSS and the tests were performed to ascertain the factors influencing the consumer decision while buying fruit drinks. • Factor analysis was conducted to discern out of the 13 factors mainly which factors influence the buying habits of the consumers. Ultimately I identified 5 factors which mainly have an influence. • I also conducted correlation tests to find out the various reasons for purchasing any particular brand of fruit drink.Limitations: • 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 of college students have been surveyed. The data might not be representative of the entire population.
• Various statistical techniques as learned have been implemented and conclusions as best possible have been drawn making few assumptions as and when required. • Since no data was on interval or ratio scale it was not feasible to conduct Regression and ANOVA.Factor AnalysisThe Perceptual mapping for various factor recognized: Rotated Component Matrix(a) Component health and media convenience product features package design hygiene influencerange_flavours 0.112 -0.069 0.847 -0.056 0.033availability 0.011 0.001 0.82 0.009 0.042brandambassador 0.633 -0.072 -0.253 -0.118 0.3visual_packg 0.084 0.072 0.062 -0.023 0.872price -0.14 0.003 0.088 0.691 0.438quantityavailable 0.108 0.643 0.041 -0.181 0.06promotionschemes -0.08 0.856 -0.039 0.172 -0.032packetcleanliness 0.926 0.004 0.152 -0.013 -0.014brandvalue -0.116 0.794 -0.159 0.125 -0.028nutritionvalue 0.778 -0.074 -0.043 0.067 -0.088flavour 0.147 0.118 -0.113 0.779 -0.261adfreq -0.065 0.8 0.052 0.046 0.066expirydate 0.805 -0.009 0.244 0.04 0.043Extraction Method: Principal ComponentAnalysis.Rotation Method: Varimax with KaiserNormalization.a. Rotation converged in 6iterations.
The factors recognized after the factor analysis are as under:Factor 1: Health and Hygiene 1. Packet cleanliness 2. Nutrition Value 3. Expiry DateFactor 2: Media Influence 1. Promotion Schemes 2. Brand Value 3. AD FrequencyFactor 3: Convenience 1. Range of flavors 2. AvailabilityFactor 4: Product Features 1. Price 2. FlavorFactor 5: Package Design 1. Visual PackagingAttributes those were not important: 1. Brand Ambassador 2. Quantity Available • The perceptual maps show the mapping of different factors in the minds of the customers and the association between them. The data was reduced from many attributes to 5 factors that have similar attributes. • The various factors mapped according to the rotated results of factor analysis. The factors were given names based on the attributes in them. These factors were used to form the factor analysis where two factors were mapped on X and Y axis to know the relation between them.
• The factors help the company to know how the product is currently mapped in the customer’s mind. If a target consumer is focused upon then the factors can be changed and a different map can be formed. • The attribute brand ambassador and package sizes available are not a major attribute in any of the factors. This justifies the fact that almost all the major fruit drinks are not endorsed by any of the big brand ambassador barring a few such as minute maid pulpy orange (Nikhil Chinappa ) . Also the variety of the package sizes available is not affecting the consumer decision while making a purchase for fruit drinks.CrossTabs 1. PURCHASE FREQUENCY VS SKU PREFERRED CrosstabCount SKU 200 ml 300 ml 500 ml 1 litre Totalpurchasefrequency 1-3 times 25 2 5 2 34 4-6 times 15 6 6 0 27 more than 6 times 7 1 4 4 16 rarely 11 1 5 6 23Total 58 10 20 12 100
Chi-Square Tests Asymp. Sig. (2- Value df sided)Pearson Chi-Square 19.117a 9 .024Likelihood Ratio 20.380 9 .016Linear-by-Linear Association 8.109 1 .004N of Valid Cases 100 a. 10 cells (62.5%) have expected count less than 5. The minimum expected count is 1.60.Since p value is less than alpha i.e. .05 (95% confidence level), therefore h0 is rejected. Thisshows that there is high association between purchase frequency and SKU or quantity packs.This is an indication of the fact that people preferring smaller SKUs usually purchase more ascompared to others. Thus high association between purchase frequency and SKU (pack sizes ) isestablished . 2. PURCHASE FREQUENCY VS GENDER purchasefrequency * gender CrosstabulationCount gender male female Totalpurchasefrequency 1-3 times 19 15 34 4-6 times 18 9 27 more than 6 times 12 4 16 rarely 17 6 23Total 66 34 100
Chi-Square Tests Asymp. Sig. (2- Value df sided)Pearson Chi-Square 2.776a 3 .428Likelihood Ratio 2.776 3 .427Linear-by-Linear Association 2.387 1 .122N of Valid Cases 100a. 0 cells (.0%) have expected count less than 5. The minimum expected countis 5.44.Since p value is greater than alpha i.e. o.05 (95% confidence level), therefore there is noassociation between purchase frequency and gender. 3. CHOICE OF CHANNEL VS FACTORS AFFECTING CHOICE OF CHANNEL
channel * reasonforchannel CrosstabulationCount reasonforchannel Pricing Ambience Nearness Service Display Reputation Occasion Totalchannel Retail store 4 8 23 0 13 0 6 54 Supermarket 4 6 6 0 6 1 0 23 Cineplex 1 0 0 0 2 2 0 5 Restaurants 1 3 1 1 3 0 0 9 Travel 1 2 1 0 1 0 0 5 Pan shops 0 2 0 0 0 0 0 2 Others 1 0 0 0 0 0 1 2Total 12 21 31 1 25 3 7 100 Chi-Square Tests Asymp. Sig. (2- Value df sided)Pearson Chi-Square 68.211a 36 .001Likelihood Ratio 50.165 36 .059Linear-by-Linear Association 1.108 1 .293N of Valid Cases 100a. 43 cells (87.8%) have expected count less than 5. The minimum expected countis .02.Here p value is less than alpha i.e. 0.05 (95% confidence level) therefore Ho is rejected. Thisshows that there is high association between choice of channel and factors affecting the choice ofchannel. This gives an indication such that those people who consider availability and nearnessas their factor affecting the choice of channel might prefer buying fruit drink from retail stores orgrocery stores. Thus a high association is established.
CROSSTABS OF PURCHASE FREQUENCY VS REASONS FOR HAVING FRUITDRINKSI conducted crosstabs of purchase frequency with the scores /ranking given by variousrespondents to the various reasons for drinking fruit drinks such as socialisation, refreshment,enjoyment, mental lift, attitude, basic thirst, taste etc. out of all these crosstabs association wasfound between two cases. The two cases have been given below: 1. PURCHASE FREQUENCY VS REFRESHMENT purchasefrequency * refreshment CrosstabulationCount refreshment neither agree nor strongly disagree disagree disagree agree strongly agree Totalpurchasefrequency 1-3 times 20 7 5 2 0 34 4-6 times 18 6 0 1 2 27 more than 6 times 9 7 0 0 0 16 rarely 8 12 2 1 0 23Total 55 32 7 4 2 100
Chi-Square Tests Asymp. Sig. (2- Value df sided)Pearson Chi-Square 20.628a 12 .056Likelihood Ratio 23.332 12 .025Linear-by-Linear Association .108 1 .742N of Valid Cases 100a. 12 cells (60.0%) have expected count less than 5. The minimum expected countis .32.Since p value is less than alpha (95% confidence level) thus there is high association betweenrefreshment purpose and purchase frequency. This might be an indication of the fact that peopledrinking fruit drinks for refreshment purpose generally buy more as compared to others.PURCHASE FREQUENCY VS BASIC THIRST purchasefrequency * basicthirst CrosstabulationCount basicthirst neither agree nor strongly disagree disagree disagree agree strongly agree Totalpurchasefrequency 1-3 times 6 15 7 5 1 34 4-6 times 11 6 6 4 0 27 more than 6 times 3 9 0 4 0 16 rarely 11 9 2 0 1 23Total 31 39 15 13 2 100
Chi-Square Tests Asymp. Sig. (2- Value df sided)Pearson Chi-Square 20.262a 12 .062Likelihood Ratio 26.177 12 .010Linear-by-Linear Association 4.223 1 .040N of Valid Cases 100a. 12 cells (60.0%) have expected count less than 5. The minimum expected countis .32.Since p value is less than alpha (95%) therefore there is high association between purchasefrequency and basic thirst /filling purpose. This might be an indication of the fact that peopledrinking fruit drinks for basic thirst / filling purpose generally buy more as compared to others.CorrelationCorrelation of the various brands (i.e. Appy, Real, Tropicana etc) was done with various reasonsfor drinking such as refreshment, enjoyment, vitality, mental lift etc. I tried to identify thevarious reasons that are correlated with various brands .This activity basically helped us inidentifying the perception and connotations of people towards various fruit drink brands.Following are some of the inferences that I established after conducting the correlation analysis. 1. There was a significant correlation between brand Real and the following reasons for drinking : • Health • Enjoyment • Attitude 2. There was a significant correlation between brand Tropicana and the following reasons for drinking : • Health • Enjoyment
3. There was a significant correlation between brand Maaza and the following reasons for drinking :• Attitude4. There was a no correlation between brand Slice and the various reasons for drinking.5. There was a significant correlation between brand Appy and the following reasons for drinking :• Socialising6. There was a significant correlation between brand Frooti and the following reasons for drinking: • Taste • Mental lift7. There was a significant correlation between brand Mangola and the following reasons for drinking : • Taste • Mental lift8. There was a significant correlation between brand Pulpy Orange and the following reasons for drinking : • Attitude9. There was a significant correlation between brand Twister and the following reasons for drinking: • Taste • Mental lift10. There was a significant correlation between brand Others (ex. Lehberry etc.) and the following reasons for drinking : • Attitude • Basic thirst
ConclusionOn the basis of the data collected and the tests conducted I have arrived at the followingconclusions:With the help of correlation I was able to identify the attributes that consumers associate with thevarious fruit drinks and which in turn drive their purchase decision for the same.For example Tropicana is associated with health and enjoyment whereas Appy is associated withsocialising. These reflect the perceptions of the various fruit drinks in the mind of the consumers.The crosstab between purchase frequency and SKU showed that those purchasing smaller SKU’spurchase more frequently as compared to those who purchased a 500ml or 1litre. On the otherhand there is no impact of gender on purchasing frequency for fruit drinks.There is a high association between the channels preferred and the factors affecting thesechannels. The most important factor came out to be location or nearness of the channel.There is also a high association between purchase frequency and reasons for consuming fruitdrinks such as refreshment and fulfilling basic thirst.In factor analysis I found out 5 factors which mainly have an impact on the purchase of a fruitdrink. There were two factors which did not have any significant impact.Also, I found out that the most preferred channel for purchase in retail stores. The most preferredSKU is 200ml packs which could be due to convenience.The most preferred drink is Frooti followed by Tropicana and Real.
AnnexurePerceptual Maps: 1. Health & Hygiene Vs Media Influence 0.778 health and media/external hygiene influencepromotionschemes -0.08 0.856 packetcleanliness 0.926 0.004 brandvalue -0.116 0.794 nutritionvalue 0.778 -0.074 adfreq -0.065 0.8 expirydate 0.805 -0.009
2. Health & Hygiene Vs Convenience health and convenience hygienerange_flavours 0.112 0.847availability 0.011 0.82packetcleanlines 0.926 0.152snutritionvalue 0.778 -0.043expirydate 0.805 0.244
3. Health & Hygiene Vs Product Features health and product features hygieneprice -0.14 0.691packetcleanlines 0.926 -0.013snutritionvalue 0.778 0.067flavour 0.147 0.779expirydate 0.805 0.04
4. Media Influence Vs Convenience media influence conveniencerange_flavours -0.069 0.847availability 0.001 0.82
promotionschemes 0.856 -0.039brandvalue 0.794 -0.159adfreq 0.8 0.052 5. Media Influence Vs Product Features
media influence product featuresprice 0.003 0.691promotionscheme 0.856 0.172sbrandvalue 0.794 0.125flavour 0.118 0.779adfreq 0.8 0.046 6. Convenience Vs Product Feature
availability 0.82 0.042visual_packg 0.062 0.872 10. Product features Vs Package design
product features package design visual_pack -0.023 0.872 g price 0.691 0.438 flavour 0.779 -0.261Questionnaire: QUESTIONNAIRE1. Whom do you buy fruit drinks for? (Tick one)a) Myself
b) Familyc) Childrend) Institutional purposes / social occasions2. 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 litre4. Through which medium did you come to know about your preferred fruit drink brand? a) Hoardings and banners b) Newspaper and magazines c) TV/radio d) Word of mouth e) Others ……………..5. Do the following reasons influence your consumption of fruit drinks? Strongly Disagree Neither Agree Strongly disagree agree nor Agree REASONS disagree For social occasions / entertainment It acts as a refreshment
It provides enjoymentIt tastes very goodIt satisfies my basicthirst and is fillingI feel a sense of wellbeing after consumingitIt gives me vitality andenergyIt relaxes me mentallyIt reflects my attitude
6. Rank the following fruit drinks from 1 to 5, with 1 being least preferred and 5 being most preferred: a) Real …………………………… b) Tropicana …………………………… c) Maaza …………………………… d) Slice …………………………… e) Appy …………………………… f) Frooti …………………………… g) Mangola …………………………… h) Pulpy orange …………………………… i) Twister …………………………… j) Others …………………………… 7. How important are the following factors for purchasing a fruit drink? FACTORS Very less Less No Important Very important important Influenc Important e Flavor
No. of flavors Availability and Convenience Price Cleanliness of packet/ not damaged Manufacturing date /expiry date Frequency of advertisement Brand ambassador Nutritional value/ calorie content Brand value /brand name SKUs available Promotion schemes/discounts Visual appeal of packaging8. Which is your most preferred channel for purchasing a fruit drink? a) Retail store/grocery store b) Supermarket/hypermarket c) Cineplex d) Pan shop/kiosks e) Restaurants f) Travel g) Others……………………………….
9. Which is the most important characteristic for choosing the channel?a) Pricingb) Ambiencec) Location/ nearnessd) Servicee) Display /merchandisingf) Reputationg) Occasionh) OthersPersonal Details1. Agea) 17-20b) 21-24c) 25-28d) 29 and above2. Gender:a) Maleb) Female3. Educationa) High schoolb) Undergraduatec) Graduated) Postgraduatee) Others