Business Research: Mithai (Sweets) Demand & Consumption


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Business Research: Mithai (Sweets) Demand & Consumption

  1. 1. Consumption Pattern of Mithai (Sweets) Team : Gartner Samir Saleem Muhammad Suhaib Umme Ammara Zeeshan Valliani
  2. 2. ConceptMithai has established itself as a symbol of socialevent celebrations.Eid, Divali, Navroz, Child birth,Weddings, Promotion,Victory etc
  3. 3. Problem Statement ‘Study the impact of Occasions and events on the consumption pattern of Mithai.’
  4. 4. Research Objective Whether the consumption of mithai increases or not during occasions Whether per person consumption rises during occasions To know whether people prefer mithai over other desserts/ sweets and confectionaries. Whether people associate mithai with the specific occasion Do people associate quality of mithai with the brand name
  5. 5. PropositionThe strong bond between traditions/customs/festivities andMITHAI (sweets) has a huge positive impact on the‘Consumption Pattern’ of Mithai.
  6. 6. Hypothesis Let ‘x’ be the (population) proportion of people who eat mithai (off-occasion). Ho’ : During social occasions and events, the proportion of people who eat mithai raises by 80% or higher. p >= 1.8 * x H1’ : During social occasions and events, the proportion of people who eat mithai doesn’t raise by 80%. p < 1.8 *x• Let ‘y’ be the mean consumption of mithai per person (off-occasion).• Ho’’ : During social occasions and events, the mean consumption of mithai per person raises by 40% or higher. u >= 1.4 * y (unit)• H1’’ : During social occasions and events, the mean consumption of mithai per person doesn’t raise by 40% u < 1.4 * y (unit)
  7. 7. Research Methodology Research Design Exploratory: Market Survey Descriptive: Questionnaire Data Source Primary Data: Personal Interviews and Questionnaire Secondary Data: Census published by Government of Pakistan Research Approaches Quantitative Research Instruments Questionnaire, Personal interviews
  8. 8. Sampling Plan Population of Karachi  Sample size 21,142,625 Estd (2012) 236 Source: Census Bureau  Sampling procedure Sampling Unit  Simple Random Any one living in Karachi  Convenience Sampling Sampling Frame  Contact Method Mithai shoppers of  Personal Visit to mithai shops Bahadurabad Gulshan and  Questionnaire distribution Gulistan-e-Johar, Friends & Family, Colleagues  Online Survey form
  9. 9. Sample Size, Confidence Interval and Margin of ErrorThe sample we gathered was n = 236, plugging it into the above systemwe determined the margin of error i.e. E = 6.4%.Taking Confidence interval of 95%.
  10. 10. Target Segments Age  Social Class All Ages All Gender  Lifestyle Male & Female Educated, Urban, Traditional, Rural Occupation Employed, Self Employed and RetiredDemographics Psychographic
  11. 11. Target Segments (Cont’d) Benefits sought  Income Convenience, Quality, Availability, Taste etc. Lower, Middle and Upper income groups Occasions  Religious events (e.g. Eid, Diwali, ramadan)  Family events (e.g. Marriage, Engagement, Birthdays, Childs birth, New Home)  Professional events (e.g. Promotion)  Other (e.g. Cricket team victory)Behavioral Socio Economic
  12. 12. EXPLORATORY RESEARCHMarket Survey – As Pilot StudyPlaceBahadurabad MarketOccasionRamadan (first week) @ 4 pmRespondentsTotal Respondents : 20Total Shops : 6
  13. 13. EXPLORATORY RESEARCH (Cont’d)Summary Most customers, think purchase and consumption increase during occasions and events Most customers, will buy mithai from the specific brand they like Most customers, buy mix mithai Most shopkeepers, think Biggest player is Dil Pasand Most customers, think Chocolates cannot compete with mithai Some customers, think that chocolate promotions does have small impact on mithai market Customers On an average will buy 1.5Kg Mithai for 10 people. Most of the buyers, were male Many customers, think quality of Mithai matters Among the shops we visited, United King was the most crowded shop with customers. Off-occasion: on-occasion frequency ratio is 1 : 3.5 As per the shop keepers, most frequently customers purchase 1Kg Box
  14. 14. DESCRIPTIVE RESEARCH –Questionnaire DesignQuestionnaire covered following domains Geographic and Demographic Behavior and Psychology Consumption and Purchase Brand Loyalty Availability and Convenience Decision Making
  15. 15. DESCRIPTIVE RESEARCH - Analysis 1 -BehaviorOver 90% people think mithai adds valueto social events and celebration.
  16. 16. DESCRIPTIVE RESEARCH - Analysis 2 –Consumption QuantityProbable per person consumption peroccasion = 165 gms(using weighted avg of quantity for thosewho consider number of people)
  17. 17. DESCRIPTIVE RESEARCH - Analysis 3 –Purchase FrequencyWeighted Freq of Purchase Off-occasion(per month) = 1.28
  18. 18. DESCRIPTIVE RESEARCH - Analysis 4 –Purchase FrequencyWeighted Freq of Purchase On-occasion (permonth) = 2.95Percentage Increase in purchase frequencyduring occasions = 130.5Hence, Percentage Increase in people whoconsume mithai [Proves Hypothesis 1] = 130.5[Considering every purchase is made for mutuallyexclusive audience]
  19. 19. DESCRIPTIVE RESEARCH - Analysis 5 –Consumption FrequencyWeighted Freq of Consumption Off-occasion (per month) = 1.36
  20. 20. DESCRIPTIVE RESEARCH - Analysis 6 –Consumption FrequencyWeighted Freq of Consumption On-occasion (per month) = 2.09Increase in consumption during occasions (percentage increase) =53.68Consumption quantity per month: Off-occasion = 224.4Consumption quantity per month: On-occasion = 344.85Increase in consumption volume during occasions (percentageincrease) [Proves Hypothesis 2] = 53.68Increases in consumption frequency and consumption volume aredirectly proportional and rise with equal proportions keeping thevolume consumed per time constant
  21. 21. DESCRIPTIVE RESEARCH - Analysis 7 -ConsumptionNo direct relation between income andconsumptionMithai consumption is need/event basedand people with all income groups buy itduring occasions and events.
  22. 22. DESCRIPTIVE RESEARCH - Analysis 8 –Market ShareUnited King, Dil Pasand, Rehmat-e-Shereen and Dacca Hold majority of themarket share (%) = 59.35
  23. 23. DESCRIPTIVE RESEARCH - Analysis 9 –Market Size (Volume, Value)41% of the population of Karachi is the ‘market size by people’i.e. (Total Population – Below 15 Population)*0.41Market size by people = 21142625*0.41 = 8,668,476 peopleMarket size by people * weighted frequency of consumption*quantity per consumption = market size by volumeMarket size by Volume(per month on occasion) = 8668476 * 2.09 *0.165 = 2,989,324 Kg/monthMarket size by volume(Kg) * Avg Kg Cost = market size by valueMarket size by Value (per month) = 2989324 * 500 =1,494,662,000PKR i.e. approx. 150 Billion PKR Per month.
  24. 24. RISKS AND CONSTRAINTS A lot of sample units were selected based on convenience, so there is high probability of sampling-bias. The inferences developed from ‘urban sample’ have been generalized on rural population as well. The age group 36 and above lacks proper representation in the sample.
  25. 25. Conclusion Hypothesis 1 holds true:Ho’: p >= 1.8(x)Where x is off-occasion population proportion ofconsumers.Population proportion increases by 130% Hypothesis 2 holds true;Ho’’: u >= 1.4(y)Where y is off-occasion mean consumption per consumer.Mean per person consumption increases by 53%