Project Report

To
TO STUDY CONSUMER RESPONSE AND
BEHAVIOUR OF BISCUITS IN CREAM AND
COOKIES SEGMENT AND BASED ON THE STUDY
RECOMMEND BRAND BUILDING STRATEGY FOR
OREO
FOR

(CADBURY INDIA LIMITED)

Submitted By

ARSHIA KAUL
To

Department of Operational Research

Faculty of Mathematical Sciences
University of Delhi
As

Partial Fulfilment of the

Requirement of the Degree of

Master of Sciences

In

Operational Research
Session 2010-2012
NAME: ARSHIA KAUL

Date of Commencement: JANUARY, 2012

Date of Completion: 30th APRIL, 2012

Title of the Project: “TO STUDY THE CONSUMER RESPONSE

OF BISCUITS IN THE CREAM AND COOKIES SEGMENT”

Name and Address of the Organization: CADBURY INDIA LIMITED

303-305, VIPUL AGORA,

3RD FLOOR, MG ROAD,

GURGAON -122002

Project Mentor (Organization): MR. GAURAV KAUL

BRANCH CUSTOMER MARKETING MANAGER –

NORTH

Supervisors from the Teaching Faculty:

Dr. (Mrs.) Preeti Wanti Srivastava

Dr. C.K. Jaggi

Dr. Pankaj Gupta

Dr. P.C. Jha

Dr. K.K.Aggarwal

Dr. Ompal Singh

Dr. (Mrs.) Anu Aggarwal

 ACKNOWLEDGEMENTS
I express my sincere gratitude to the Operational Research Faculty for the
timely needful guidance, help, managerial support and co-operation at
various levels during the project study.

I wish to express my heartfelt gratitude to all my professors Dr. P.C. Jha,

Dr C.K.Jaggi, Dr. K. K. Aggarwal, Dr (Mrs.) Preetiwanti Srivastava, Dr.
Pankaj Gupta ,Dr. Ompal Singh and Dr. (Mrs.) Anu Gupta Aggarwal for
their inevitable guidance, co-operation and suggestions in planning and
execution of the project.

I am highly indebted to Mr. Gaurav Kaul, Branch Customer Marketing

Manager –North for giving me an opportunity to undertake this
assignment.
SNO. TOPIC PAGE NO.
Chapter 1
1.1 Operational Research
1.2 Introduction- To the Study
1.3 Research Problem
1.4 Significance of the study
1.5 Scope of the study
1.6 Research objective
1.7 Research hypotheses
1.8 Research Methodology
Chapter 2 Literature Review
2.1 Consumer Behaviour
2.2 Brand
2.3 Brand Extension
2.4 Market Analysis
2.5 Marketing Research
2.6 Factor Analysis
2.7 S.W.O.T Analysis
Chapter 3
3.1 Industry Profile
3.2 Company Profile
3.3 Product Profile
Chapter 4 Descriptive Statistics & Inferential
Statistics
Chapter 5
5.1 Limitations of the study
5.2 Scope for Further Research
5.3 Swot Analysis
5.4 Summary
5.5 Suggestions

CONTENTS

1.1 OPERATIONAL RESEARCH

As a formal discipline, operational research originated in the efforts of
military planners during World War II. In the decades after the war, the
techniques began to be applied more widely to problems in business, industry
and society. Since that time, operational research has expanded into a field
widely used in industries ranging from petrochemicals to airlines, finance,
logistics, and government, moving to a focus on the development of
mathematical models that can be used to analyse and optimize complex
systems, and has become an area of active academic and industrial research.
Operational Research (OR) is the use of advanced analytical techniques to
improve decision making. It is sometimes known as Operations Research,
Management Science or Industrial Engineering. People with skills in OR hold
jobs in decision support, business analytics, marketing analysis and logistics
planning – as well as jobs with OR in the title.

WHY IS O.R. NEEDED?

As it makes sense to make the best use of available resources. Today’s global
markets and instant communications mean that customers expect high-quality
products and services when they need them, where they need them.
Organisations, whether public or private, need to provide these products and
services as effectively and efficiently as possible. This requires careful
planning and analysis – the hallmarks of good OR. This is usually based on
process modelling, analysis of options or business analytics.

EXAMPLES OF O.R. IN ACTION

 Scheduling: of aircrews and the fleet for airlines, of vehicles in supply

chains, of orders in a factory and of operating theatres in a hospital.
  Facility planning: computer simulations of airports for the rapid and
safe processing of travellers, improving appointments systems for
medical practice.
 Planning and forecasting: identifying possible future developments in
telecommunications, deciding how much capacity is needed in a
holiday business.
 Yield management: setting the prices of airline seats and hotel rooms
to reflect changing demand and the risk of no shows.
 Credit scoring: deciding which customers offer the best prospects for
credit companies.
 Marketing: evaluating the value of sale promotions, developing
customer profiles and computing the life-time value of a customer.
 Defence and peace keeping: finding ways to deploy troops rapidly.

SOME O.R. METHODS AND TECHNIQUES

 Computer simulation: allowing you to try out approaches and test

ideas for improvement.
 Optimisation: narrowing your choices to the very best when there are
so many feasible options that comparing them one by one is difficult.
 Probability and statistics: helping you measure risk, mine data to find
valuable connections and insights in business analytics, test
conclusions, and make reliable forecasts.
 Problem structuring: helpful when complex decisions are needed in
situations with many stakeholders and competing interests.

1.2 INTRODUCTION-STUDY
Not only is India's biscuits market the largest by volume, the category also
makes for the biggest piece - more than one-tenth - of the domestic fast
moving consumer goods market.

The business has so far been dominated by three players - Parle Products,
Britannia and ITC. But battlelines could be redrawn as a raft of multinationals
led by Kraft and PepsiCo make a beeline for India.

After Kraft foods acquired Cadbury, Cadbury India (subsidiary of Kraft

foods) launched Oreo cookies, a billion dollar brand owned by its US-based
parent Kraft Foods, as it looked to gatecrash into the Rs 13,000-crore biscuits
market dominated by Parle and Britannia. The locally-manufactured Oreo
launched in April 2011, almost a century after it was introduced in the US
market.

In this study we look at analyzing how far the product oreo has been able
penetrate the large biscuits market. The study will concentrate on gathering
data from the direct consumer of the product and based on the data establish
useful information and suggest the achievements or lack of achievements of
the brand to penetrate in the market.

The buying decision of a buyer is influenced by an economic

decision and expectation. He expects best performance maximum
durability and more dependability from a product or s e r v i c e . T h e
d e c i s i o n m a k i n g i s a pr o c e s s w h e r e b y a b u y e r d e c i d e s t o
p u r c h a s e a  particular product out of various available alternatives
depending upon his ability to purchase and willingness to purchase.
This process of selection and final selection is known as buying
decision making.
We concentrated on the population of Delhi. From the target
p o p u l a t i o n of D e l h i a s t r a t i f i e d s a m p l e o f 2 8 5 w a s t a k e n . A l l
t h e necessary data was collected from the selected sample using
questionnaires. Our target population were the people whose range from 15
to 59.

From the study, it is found that there are many factors which
influence the consumer buying decision of goods. They include
price, quality, availability of the product, brand name, advertisement
of the company. From the survey it is also found that the   p r e v i o u s
e x p e r i e n c e o n t h e pr o d u c t w i l l i n f l u e n c e t h e b u y i n g d e c i s i o n .

The study was performed with the help of a sample survey technique.

The steps of the performing the study in brief are:

1. Problem definition
2. Development of an approach to the problem
3. Research Design Formulation
4. Fieldwork or Data collection
5. Data Preparation and analysis
6. Report Preparation and Presentation
1.3 RESEARCH PROBLEM
The problem was to find out whether the product oreo had been able to
penetrate into the Indian market and whether it will be able to achieve the
India No. 1 rank similar to its World No. 1 status.

An analysis needed to be done to study the response of the customer to the

biscuit oreo and to study how well it is competing with its competitors in the
same group of cream and cookies segment.

To study further how well the biscuit has been able to stand up to the Brand
of the cadbury.

1.4 SIGNIFICANCE OF THE STUDY

The study will be able to suggest the actions that can be taken to improve the
marketing strategy of the company of the product if the product has not been
able to capture the Indian market well.

On the other hand if the product oreo has been able to capture the Indian
market to its full capacity then the study will be able to suggest possible ways
to sustain market share in the market.

1.5 SCOPE OF THE STUDY

The study was based on questionnaires circulated in the geographic region of
Delhi. The study was a study only of the oreo product as part of the cream
and cookies segment. The study will therefore have a comparative study
between oreo and competitors from the same segment i.e. the cream and
cookies segment1.

(1cookies:manufacturing process is different from biscuit and have soft bite

sandwich biscuits; these are cream biscuit which are sandwiched in shells and
are found in various flavours like vanilla cream , mango , milk , chocolates)

1.6 RESEARCH OBJECTIVE

To study consumer response and behaviour of biscuits in Cream and Cookies
segment and based on the study recommend brand building strategy for Oreo.

1.7 RESEARCH HYPOTHESES

 To study demographic profile of consumers catered by Oreo
 To evaluate brand awareness and repeat purchase of Oreo
 To study consumer preferences in biscuit category and where does
Oreo stand vis a vis competition.
 To analyse factors that give Oreo competitive edge
 To study what are the factors that affect the buying of oreo biscuits
among the customers, i.e. study whether it is the price. brand name,
influence by market features(peer group , family members,
advertisements).
 To study if there is a dependence of age on the eating habits of
consumers in terms of biscuits
 To study if there is a dependence of place of shopping and the biscuit
you buy
 To study if there is dependence of consumer behaviour and brand
ambassadors of the product.
1.8 RESEARCH METHODOLOGY
In a market research the most important aspect is to define the problem
accurately. Once the problem is defined well, it makes it easier for us to study
different aspects related to the problem and find solutions. Defining the
problem is the single most important step in the market research process. A
clear statement of the problem is a key to a good research. A firm may spend
hundreds or thousands of dollars doing market research, but if it has not
correctly identified the problem, those dollars are wasted. In our case it is
obvious that the problem here is setting up a business.

For understanding and analysing the problem at hand we need to collect data
from various sources, find appropriate information from the data collected
and propose suggestions based on the information. In this study which studied
the consumer behaviour and response in the biscuits sector and specifically
the cream and cookies segment, the following was the methodology we
followed.

Data Source:

The research included gathering data from primary and secondary sources.
Primary data is first hand information and is original in nature. Primary data
was important to understand the consumer response towards the product oreo
biscuit and understand the level of satisfaction by the product.

The Secondary data sources of information were the sources that were
collected from newspaper articles, internet websites and company websites.
The secondary information helped in the analysis of the biscuit industry in
India , company profile, market share of the company in India in the biscuit
sector, product profile etc.

Research Approach and Design:

The approach used to collect primary data was the survey method. Survey
method is found to be the most appropriate to collect primary data. A
questionnaire was constructed with questions pertaining to our hypotheses for
the defined problem. The survey is performed on the sample. The following is
the relevant information about the sample.

1.Target Population: The collection of elements or objects that possess the

information about which inference are to be made.

2.Element: An object that possesses the information sought by the

researcher.

3. Sampling Unit: The basic unit of containing that elements of the

population to be sampled.

Sampling Frame: A representation of the elements of the target population. It

consists of a list or set of directions for identifying the target population.

4. Sampling Technique:

The technique for sampling is Stratified sampling. In this technique the

sampling frame is divided into non-overlapping groups or strata, e.g.
geographical areas, age-groups, genders.  A sample is taken from each
stratum, and when this sample is a simple random sample it is referred to
as stratified random sampling.

In our study we have applied proportional stratification. In this case the

sampling fraction is proportionate to the population within each stratum. In
this technique, the total target population is divided into strata or segments on
the basis of some important variables. For eg. A consumer population may be
divided into age brackets of below 25, 25-40, and above 40 years above. In
this case the standard deviations of the distribution of characteristic of
interest (of population) are not known. Then a sample is taken from each
of the strata defined earlier. Practically, the overall sample size is first
calculated, using a formula or by judgement or experience. This overall
sample is divided into sub-samples for each stratum or segment. There are
two ways of doing this – called proportionate stratification and
disproportionate stratification.

When sub-populations vary considerably, it is advantageous to sample each

subpopulation (stratum) independently. Stratification is the process of
grouping members of the population into relatively homogeneous subgroups
before sampling. The strata should be mutually exclusive: every element in
the population must be assigned to only one stratum. The strata should also be
collectively exhaustive: no population element can be excluded. Then random
or systematic sampling is applied within each stratum. This often improves
the representativeness of the sample by reducing sampling error. It can
produce a weighted mean that has less variability than the arithmetic mean of
a simple random sample of the population.

Total Sample Size for proportionate stratified sample

First , to compute the overall sample size for a proportionate stratified

sample, we have to use a modified formula
(z/e)2 *∑WiSi2

Where

Wi =weight of stratum i =Ni/N

Si2= estimated variance of of stratum i

x-µ=e = tolerable error

z=confidence coefficient

The pre-condition for using this formula is that we need to know the standard
deviation (estimated) of the concerned variable for each of the strata.S1,
S2,S3 and so on . We also have to assign a weight to each stratum, which is
Wi in the formula above. Wi is generally called as a proportion of number of
people in stratum ‘i’, to the number of people in all the strata. In other words,

Wi=(Ni/N)

Where

Ni: is the population of the stratum ‘i’

N: is the total population targeted for the study

For calculating the weights, therefore, we must have at least an estimate of

the distribution of our target population among the strata. We also need Si,
the standard deviation of the variable being estimated, for each stratum. These
are not always easy to get.

Sample Size:

From the above formula we were able to estimate the sample size for our
study as 285.

Data Compilation and Analysis:

After the data was collected with the help of questionnaires we tabulated the
data. Of all the data collected from the survey the relevant information was
collected and based on relevant data analysis was done.
All the analysis done with help of statistical tools such as hypothesis testing
are discussed under statistics section Based on the analysis, we found out
about relevant problems and solutions for the marketing strategy of the
company. Based on the findings relevant suggestions proposed through the
study.

Report and Presentation:

All aspects of the research were collated together and put forth to the upper
management as a report and presentation of the company for their further
consideration.
 SAMPLE SIZE CALCULATION AT A GLANCE

age
group 15-29 30-44 45-59
total
sum 359 178 432
21.1176
mean 5 35.6 54
2.75867 5.26443
std dev 6 5.319774431 6
7.61029 27.7142
var 4 28.3 9
       
       
Z^2 3.8416    

error between the population mean and

sample mean i.e. difference in between
sample mean age and population mean
x-U 0.40 age under consideration
w1 0.47  
w2 0.34  
w3 0.19  

283.733
n 7  
n
approx 284  
     
     
n1 133.48 134
n2 96.56 97
n3 53.96 54
    285
 I. OBJECTIVE OF THE STUDY AT A GLANCE

The main objectives of this study are as follow:

1. To study the consumer response towards biscuits in the cream and

cookies segment and to build brand strategy for oreo.

2. Factor Analysis: Factorization of parameters that have been collected

from different profession persons with the help of a questionnaire using
computer based software SPSS.

3. Suggestions and Recommendations to the company on the basis of

analysis done and consumers surveyed.

4. SWOT Analysis
 METHODOLOGY OF DATA COLLECTION AT A GLANCE

The methodology adopted for collecting data and sample design is given
below:

A. COLLECTION OF DATA

For collecting Primary Data, a questionnaire was designed.

This questionnaire was administered to both males and females

of different age groups.

B. STRATIFIED SAMPLING DESIGN

SAMPLE SIZE : 285

SURVEY AREA : DELHI

MODE OF SURVEY: PERSONALISED INTERVIEWS

 2.1 CONSUMER BEHAVIOUR
All of us are consumers. We consume things of daily use, we also consume
and buy these products according to our needs, preferences and buying
power. These can be consumable goods, durable goods, speciality goods or,
industrial goods.
What we buy, how we buy, where and when we buy, in how much quantity
we buy depends on our perception, self concept, social and cultural
background and our age and family cycle, our attitudes, beliefs values,
motivation, personality, social class and many other factors that are both
internal and external to us. While buying, we also consider whether to buy or
not to buy and, from which source or seller to buy. In some societies there is a
lot of affluence and, these societies can afford to buy in greater quantities and
at shorter intervals. In poor societies, the consumer can barely meet his barest
needs.
The marketers therefore try to understand the needs of different consumers
and having understood his different behaviours which require an in-depth
study of their internal and external environment, they formulate their plans
for marketing.
Management is the youngest of sciences and oldest of arts and consumer
behaviour in management is a very young discipline. Various scholars and
academicians concentrated on it at a much later stage. It was during the
1950s, that marketing concept developed, and thus the need to study the
behaviour of consumers was recognised. Marketing starts with the needs of
the customer and ends with his satisfaction. When everything revolves round
the customer, then the study of consumer behaviour becomes a necessity. It
starts with the buying of goods. Goods can be bought individually, or in
groups. Goods can be bought under stress (to satisfy an immediate need), for
comfort and luxury in small quantities or in bulk. For all this, exchange is
required. This exchange is usually between the seller and the buyer. It can
also be between consumers.
Consumer behaviour can be defined as the decision-making process and
physical activity involved in acquiring, evaluating, using and disposing of
goods and services. This definition clearly brings out that it is not just the
buying of goods/services that receives attention in consumer behaviour but,
the process starts much before the goods have been acquired or bought. A
process of buying starts in the minds of the consumer, which leads to the
finding of alternatives between products that can be acquired with their
relative advantages and disadvantages. This leads to internal and external
research. Then follows a process of decision-making for purchase and using
the goods, and then the post purchase behaviour which is also very important,
because it gives a clue to the marketers whether his product has been a
success or not.
To understand the likes and dislikes of the consumer, extensive consumer
research studies are being conducted. These researches try to find out:
i. What the consumer thinks of the company’s products and those of
its competitors?
ii. How can the product be improved in their opinion?
iii. How the customers use the product?
iv. What is the customer’s attitude towards the product and its
advertising?
v. What is the role of the customer in his family?
Consumer behaviour is a complex, dynamic, multidimensional process, and
all marketing decisions are based on assumptions about consumer behaviour.
Marketing strategy is the game plan which the firms must adhere to, in order
to outdo the competitor or the plans to achieve the desired objective. In
formulating the marketing strategy, to sell the product effectively, cost-
benefit analysis must be undertaken.
There can be many benefits of a product, for example, for owning a motor
bike one can be looking for ease of transportation, status, pleasure, comfort
and feeling of ownership. The cost is the amount of money paid for the bike,
the cost of maintenance, gasoline, parking, risk of injury in case of an
accident, pollution and frustration such as traffic jams. The difference
between this total benefit and total cost constitutes the customer value. The
idea is to provide superior customer value and this requires the formulation of
a marketing strategy. The entire process consists of market analysis, which
leads to target market selection, and then to the formulation of strategy by
juggling the product, price, promotion and distribution, so that a total product
(a set of entire characteristics) is offered. The total product creates an image
in the mind of the consumer, who undergoes a decision process which leads
to the outcome in terms of satisfaction or dissatisfaction, which reflects on the
sales and image of the product or brand. The figure below gives in detail the
shaping of consumer behaviour, which leads a consumer to react in certain
ways and he makes a decision, keeping the situations in mind. The process of
decision-making varies with the value of the product, the involvement of the
buyer and the risk that is involved in deciding the product/service.
The figure shows the consumer life style in the centre of the circle. The
consumer and his life style is influenced by a number of factors shown all
around the consumer. These are culture, sub culture, values, demographic
factors, social status, reference groups, household and also the internal make
up of the consumer, which are a consumers, emotions, personality motives of
buying, perception and learning. Consumer is also influenced by the
marketing activities and efforts of the marketer.
All these factors lead to the formation of attitudes and needs of the consumer.
2.2 MARKET ANALYSIS
Market analysis requires an understanding of the 4-Cs which are consumer,
conditions, competitor and the company. A study is undertaken to provide
superior customer value, which is the main objective of the company. For
providing better customer value we should learn the needs of the consumer,
the offering of the company, vis-a-vis its competitors and the environment
which is economic, physical, technological, etc.
A consumer is anyone who engages himself in physical activities, of
evaluating, acquiring, using or disposing of goods and services.
A customer is one who actually purchases a product or service from a
particular organisation or a shop. A customer is always defined in terms of a
specific product or company.
However, the term consumer is a broader term which emphasises not only the
actual buyer or customer, but also its users, i.e. consumers. Sometimes a
product is purchased by the head of the family and used by the whole family,
i.e. a refrigerator or a car. There are some consumer behaviour roles which
are played by different members of the family.
All the consumer behaviour roles are to be kept in mind but, the emphasis is
on the buyer whose role is overt and visible.

(a) The Consumer

To understand the consumer; researches are made. Sometimes motivational
research becomes handy to bring out hidden attitudes, uncover emotions and
feelings. Many firms send questionnaires to customers to ask about their
satisfaction, future needs and ideas for a new product. On the basis of the
answers received, changes in the marketing mix are made and advertising is
also streamlined.
(b) The External Analysis (Company)
The external analysis may be done by the feedbacks from the industry analyst
and by marketing researches. The internal analysis is made by the firm.s
financial conditions, the quantum of the sales, force and other factors within
the company. The study of these factors leads to a better understanding of the
consumer and his needs. The factors influencing Indian Consumer are:
1. Geography
2. Population
3. Urban-Rural
4. Sex
5. Age factor
6. Literacy level
7. Incentive level
8. Linguistic diversity
9. Religion
10. Dress, food
11. Habits and fashion

(c) The Competition

In the analysis of the market, a study of the strengths and weaknesses of the
competitors , their strategies, their anticipated moves and their reaction to the
companies. moves and plans is to be made. The company after getting this
information , reacts accordingly and changes its marketing mix and the
offering is made in a manner which can out do the competitor. This is a very
difficult process and it is easier said than done. To have correct information
about the competitors and to anticipate their further moves is the job of the
researcher.
(d) The Conditions
The conditions under which the firms are operating has also to be seriously
considered. The factors to be studied are the economy, the physical
environment, the government regulations, the technological developments,
etc. These effect the consumer needs, i.e. the deterioration of the environment
and its pollution may lead to the use and innovation of safer products. People
are health conscious and are concerned with their safety. Hence, in this case,
safer products have a better chance with the consumer. In case of recession,
the flow of money is restricted greatly. This leads to the formulation of
different marketing strategies.
(e) Market Segmentation
The market is divided into segments which are a portion of a larger market
whose needs are similar and, they are homogeneous in themselves. Such
segments are identified with similar needs.
1. Geography
2. Population
3. Urban-Rural
4. Sex
5. Age factor
6. Literacy level
7. Incentive level
8. Linguistic diversity
9. Religion
10. Dress, food
11. Habits and fashion
(f) Need Set
By need set, it is meant that there are products which satisfy more than one
need. An automobile can fill the transportation needs, status need, fun needs
or time saving needs. So the company tries to identify the need sets which its
product can fulfil. Then we try to identify the groups who have similar needs,
i.e. some people need economical cars, others may go for luxury cars.
(g) Demographic and Psychographic Characteristics
These groups are identified and they are described in terms of their
demographic and psychographic characteristics. The company finds out how
and when the product is purchased and consumed.
(h) Target Segment
After all the above preliminary work is done, the target customer group
known as the target segment is chosen, keeping in mind how the company
can provide superior customer value at a profit. The segment which can best
be served with the company’s capabilities at a profit is chosen. It has to be
kept in mind that different target segments require different marketing
strategies and, with the change in the environmental conditions the market
mix has to be adjusted accordingly.

Marketing Strategy
Strategies are formulated to provide superior customer value. In formulating
market strategies, the 4-ps are directed at the target market.

(i) Product
Product is anything that is offered to the consumer which is tangible and can
satisfy a need and has some value.
(j) Price
Price is the amount of money one must pay to obtain the right to use the
product.
(k) Distribution (Place)
The goods can be distributed by many channels. These could be retailers,
wholesalers, agents or by direct selling. Distribution outlets play an important
role in reaching the goods to the consumer. They provide, time, place and
possession utilities. Some goods need to be marketed through the channels or
the middleman. Others can be marketed directly by the company to the actual
consumer
(l) Promotion
Promotion is the means of changing the attitudes of the consumer, so that it
becomes favourable towards the company.s products. Various means of
promotion are advertising, personal selling, sales promotion and publicity.
(m) Service
Service refers to auxiliary service that enhances the value of the product or
the service. For instance, while buying a car. Free services are provided over
a certain period of time. Check-ups are free and maintenance is also covered
on the charge of an adequate amount along with the product purchased. These
auxiliary services are provided at a cost with money. These provide value to
the product or the customer. These services give an advantage to the customer
and he is free from the botheration of occasional checkups or risk. The risk is
considerably reduced and, the customer derives satisfaction with his decision
to purchase.
(n) Consumer Decision Process
The decision-making process consists of a series of steps which the consumer
undergoes. First of all, the decision is made to solve a problem of any kind.
This may be the problem of creating a cool atmosphere in your home. For
this, information search is carried out, to find how the cool atmosphere can be
provided, e.g. by an air-conditioner or, by a water-cooler. This leads to the
evaluation of alternatives and a cost benefit-analysis is made to decide which
product and brand image will be suitable, and can take care of the problem
suitably and adequately. Thereafter the purchase is made and the product is
used by the consumer. The constant use of the product leads to the
satisfaction or dissatisfaction of the consumer, which leads to repeat
purchases, or to the rejection of the product. The marketing strategy is
successful if consumers can see a need which a company’s product can solve
and, offers the best solution to the problem. For a successful strategy, the
marketer must lay emphasis on the product/brand image in the consumer’s
mind. Position the product according to the customers. likes and dislikes. The
brand which matches the desired image of a target market sells well.
Sales are important and sales are likely to occur if the initial consumer
analysis was correct and matches the consumer decision process. Satisfaction
of the consumer, after the sales have been effected, is important for repeat
purchase. It is more profitable to retain existing customers, rather than
looking for new ones.
From the above literature we can analyse what are the ways in which the
consumer responds to the market and in turn to the products available in the
market. Studying aspects of consumer behaviour helps us in the analysis of
consumers of the product under consideration, i.e. oreo biscuit (cream and
cookies sector.)

2.3 Brand
“Brand is a name term, sign, symbol or design or a combination of them,
intended to identify the goods or services of one seller or group of seller and
to differentiate them from those of competitors”.

Components of a Brand
Essentially a brand can convey up to six levels of meaning.
1. Attributes: A brand first brings to mind certain attributes. Brand X suggest
high quality, nutritional value, value for money etc.
2. Benefits: A brand is more than a set of attributes since customers are not
buying attributes. They are buying benefits. Attributes need to be translated
into functional and / or emotional attributes. The attributes of nutritional
value for
translate into the functional benefit of a healthy meal.
3. Values: The brand also says something about the producer’s values. Brand
X stands for best quality concern for customers.
4. Culture; The brand may represent a certain culture. Brand X stand for
American culture, which is synonymous with organized, efficient and high
quality.
5. Personality: The brand can also project a certain culture Brand XChocos
brand relates to kids and suggests a fun loving personality.
6. User: The brand suggests the kind of consumer who uses the product
Brand X is targeted towards growing children and young adults and
essentially towards woman who buy the product.

2.4 Brand Extension

The use of Brand Name established in one product Class to enter another
Product Class is known as Brand Extension. .
Why Extend a Brand?
 Innovation allows the brand to remain up to date and demonstrates and
increasing urge to detect and respond to the profound changes in
customer tastes & expectations. Brands that have stuck to a single
state-of-art product, relying on communication alone to update their
image, have not done well. Eg. Forhans toothpaste & Godrej
refrigerators.
 Cost of advertising: Advertising is very essential to achieve an
extended market share (from local market to national to international
market). If one adds to this the need to be heard as much as the
competitors, at least matching their share of voice, one understands
why advertising expenditure is raising so much. The cost of advertising
makes it impossible to support too many brands; efforts have to be
concentrated on a few brands only. It is imperative to decide which
brands should be advertised more. Therefore, brands extensions prove
to be much more economical.
 Brand extension is the only way of defending a brand at risk in a basic
market. Brand extension gives access to an accumulated images
capital. Brand awareness surveys are done to find out the existing
images of the brand in the minds of the consumer. This not only makes
us aware of the perception of the brand in the market but also gives
adequate information of the extension potential of the brand.
 Extending the brand enables the reinforcement of the image capital of
the brand and fuels it. By coming up with new or rejuvenated product,
a brand can prove that it is relevant and up to date. For that reason
brand extension, far from weakening the brand often makes it healthier.
When a brand name is added simply to provide recognition, credibility
and quality association, there often is a substantial risk that even if the
 brand is initially successful, it will be vulnerable to competition. The
extension needs to fit the brand. The customer needs to be comfortable
with the concept of the brand name’s being on extension. If the fit is
poor, desired association will not transfer but (perhaps worse) will
distract, or even precipitate ridicule. If a premium name such as
Mercedes Benz is attached to mundane products such as bicycles or
games, customers may feel that the name is being exploited or that it is
adding nothing except price.

Brand stretching

Brand stretching refers to the use of an established brand name for products in
unrelated markets.

For example the move by Yamaha (originally a Japanese manufacturer of

motorbikes) into branded hi-fi equipment, pianos and sports equipment.

When done successfully, brand extension can have several advantages:

• Distributors may perceive there is less risk with a new product if it carries a
familiar brand name. If a new food product carries the Heinz brand, it is
likely that customers will buy it

• Customers will associate the quality of the established brand name with the
new product. They will be more likely to trust the new product.

• The new product will attract quicker customer awareness and willingness to
trial or sample the product

• Promotional launch costs (particularly advertising) are likely to be

substantially lower.

Brand tracking studies allow marketers to monitor the health of the brand and
provide insights into the effectiveness of marketing programs implemented by
the company.

Brand awareness
It is a marketing concept that enables marketers to quantify levels and trends
in consumer knowledge and awareness of a brand's existence. At the
aggregate (brand) level, it refers to the proportion of consumers who know of
the brand.

Brand awareness studies are most useful when the results are set against a
clear benchmark such as data from prior periods, different markets, or
competitors. In a survey of nearly 200 senior marketing managers, 61 percent
responded that they found the "brand awareness" metric very useful.[1]

Purpose

"Awareness, attitudes, and usage (AAU) metrics relate closely to what has
been called the Hierarchy of Effects, an assumption that customers progress
through sequential stages from lack of awareness, through initial purchase of
a product, to brand loyalty." In total, these AAU metrics allow companies to
track trends in customer knowledge and attitudes.[1]

Creation of brand awareness is the primary goal of advertising at the

beginning of any product's life cycle, and has influence on buying behavior.

Brand recall

Brand Recall is the extent to which a brand name is recalled as a member of

a brand, product or service class, as distinct from brand recognition.

Common market research usage is that pure brand recall requires "unaided
recall." For example, a respondent may be asked to recall the names of any
cars he may know, or any whisky brands he may know.

Some researchers divide recall into both "unaided" and "aided" recall. "Aided
recall" measures the extent to which a brand name is remembered when the
actual brand name is prompted. An example of such a question is "Do you
know of the "Honda" brand?"
In terms of brand exposure, companies want to look for high levels of
unaided recall in relation to their competitors. The first recalled brand name
(often called "top of mind") has a distinct competitive advantage in brand
space, as it has the first chance of evaluation for purchase.

Brand recognition

Brand recognition is the extent to which a brand is recognized for stated

brand attributes, parts, offerings, or communications.

In some cases brand recognition is defined as aided recall — and as a subset

of brand recall. In this case, brand recognition is the extent to which a brand
name is recognized when prompted with the actual name.

A broader view of brand recognition is the extent to which a brand is

recognized within a product class for certain attributes. Logo and tagline
testing can be seen as a form of brand recognition testing. For example, if a
product name can be associated with a certain tagline, logo, or attribute
(safety and Volvo; "Just do it" and Nike), a certain level of brand recognition
is present.

2.5 Marketing Research

It is "the function that links the consumers, customers, and public to the
marketer through information — information used to identify and define
marketing opportunities and problems; generate, refine, and evaluate
marketing actions; monitor marketing performance; and improve
understanding of marketing as a process. Marketing research specifies the
information required to address these issues, designs the method for
collecting information, manages and implements the data collection process,
analyzes the results, and communicates the findings and their implications." [1]
Marketing research is the systematic gathering, recording, and analysis of
data about issues relating to marketing products and services. The goal of
marketing research is to identify and assess how changing elements of the
marketing mix impacts customer behavior. The term is commonly
interchanged with market research; however, expert practitioners may wish to
draw a distinction, in that market research is concerned specifically with
markets, while marketing research is concerned specifically about marketing
processes.

Marketing research is often partitioned into two sets of categorical pairs,

either by target market:

 Consumer marketing research, and

 Business-to-business (B2B) marketing research

Or, alternatively, by methodological approach:

 Qualitative marketing research, and

 Quantitative marketing research

Consumer marketing research is a form of applied sociology that concentrates

on understanding the preferences, attitudes, and behaviors of consumers in a
market-based economy, and it aims to understand the effects and comparative
success of marketing campaigns. The field of consumer marketing research as
a statistical science was pioneered by Arthur Nielsen with the founding of the
ACNielsen Company in 1923.

Thus, marketing research may also be described as the systematic and

objective identification, collection, analysis, and dissemination of information
for the purpose of assisting management in decision making related to the
identification and solution of problems and opportunities in marketing.
2.6 Factor Analysis
Factor analysis is a technique that is used to reduce a large number of
variables into fewer numbers of factors. Factor analysis extracts maximum
common variance from all variables and puts them into a common score. As
an index of all variables, we can use this score for further analysis.
Factor analysis is a statistical method used to describe variability among
observed variables in terms of fewer unobserved variables called factors. The
observed variables are modelled as linear combinations of the factors, plus
"error" terms. The information gained about the interdependencies can be
used later to reduce the set of variables in a dataset
In marketing research problems normally involve several variables, for
example the demand of a television set may depend not only on the price but
also on income of households, advertising expenditure and other similar
factors. Such problems require the use of multivariate techniques. Apart from
multiple regression there are several method used in multivariate analysis.

Factor analysis is used to uncover the latent structure (dimensions) of a set of

variables. It reduces attribute space from a larger number of variables to a
smaller number of factors and as such is a "non-dependent" procedure (that is,
it does not assume a dependent variable is specified). Factor analysis could be
used for any of the following purposes:

1. To reduce a large number of variables to a smaller number of

factors for modeling purposes, where the large number of
variables precludes modeling all the measures individually. As
such, factor analysis is integrated in structural equation modeling
(SEM), helping create the latent variables modeled by SEM.
However, factor analysis can be and is often used on a stand-
alone basis for similar purposes.
 2. To select a subset of variables from a larger set, based on which
original variables have the highest correlations with the principal
component factors.
3. To create a set of factors to be treated as uncorrelated variables
as one approach to handling multicollinearity in such procedures
as multiple regression.
4. To validate a scale or index by demonstrating that its constituent
items load on the same factor, and to drop proposed scale items
which cross-load on more than one factor.
5. To establish that multiple tests measure the same factor, thereby
giving justification for administering fewer tests.
6. To identify clusters of cases and/or outliers.
7. To determine network groups by determining which sets of
people cluster together (using Q-mode factor analysis, discussed
below)

A non-technical analogy: A mother sees various bumps and shapes under a

blanket at the bottom of a bed. When one shape moves toward the top of the
bed, all the other bumps and shapes move toward the top also, so the mother
concludes that what is under the blanket is a single thing, most likely her
child. Similarly, factor analysis takes as input a number of measures and tests,
analogous to the bumps and shapes. Those that move together are considered
a single thing, which it labels a factor. That is, in factor analysis the
researcher is assuming that there is a "child" out there in the form of an
underlying factor, and he or she takes simultaneous movement (correlation)
as evidence of its existence. If correlation is spurious for some reason, this
inference will be mistaken, of course, so it is important when conducting
factor analysis that possible variables which might introduce spuriousness,
such as anteceding causes, be included in the analysis.
Factor analysis is part of the multiple general linear hypothesis (MLGH)
family of procedures and makes many of the same assumptions as multiple
regression: linear relationships, interval or near-interval data, untruncated
variables, proper specification (relevant variables included, extraneous ones
excluded), lack of high multicollinearity, and multivariate normality for
purposes of significance testing. Factor analysis generates a table in which the
rows are the observed raw indicator variables and the columns are the factors
or latent variables which explain as much of the variance in these variables as
possible. The cells in this table are factor loadings, and the meaning of the
factors must be induced from seeing which variables are most heavily loaded
on which factors. This inferential labeling process can be fraught with
difficulty as diverse researchers impute different labels.

There are several different types of factor analysis, with the most common
being principal components analysis (PCA). However, principal axis
factoring (PAF), also called common factor analysis, is preferred for purposes
of confirmatory factory analysis in structural equation modeling.
Key Concepts and Terms

1. Exploratory factor analysis (EFA) seeks to uncover the

underlying structure of a relatively large set of variables. The
researcher's à priori assumption is that any indicator may be
associated with any factor. This is the most common form of
factor analysis. There is no prior theory and one uses factor
loadings to intuit the factor structure of the data.
2. Confirmatory factor analysis (CFA) seeks to determine if the
number of factors and the loadings of measured (indicator)
variables on them conform to what is expected on the basis of
pre-established theory. Indicator variables are selected on the
basis of prior theory and factor analysis is used to see if they
load as predicted on the expected number of factors. The
researcher's à priori assumption is that each factor (the number
and labels of which may be specified à priori ) is associated with
a specified subset of indicator variables. A minimum
requirement of confirmatory factor analysis is that one
hypothesize beforehand the number of factors in the model, but
usually also expectations about which variables will load on
which factors (Kim and Mueller, 1978b: 55). The researcher
seeks to determine, for instance, if measures created to represent
a latent variable really belong together.
3. Factors and components: Both are the dimensions (or latent
variables) identified with clusters of variables, as computed
using factor analysis. Technically speaking, factors (as from PFA
-- principal factor analysis, a.k.a. principal axis factoring, a.k.a.
common factor analysis) represent the common variance of
variables, excluding unique variance, and is thus a correlation-
 focused approach seeking to reproduce the intercorrelation
among the variables. By comparison, components (from PCA -
principal components analysis) reflect both common and unique
variance of the variables and may be seen as a variance-focused
approach seeking to reproduce both the total variable variance
with all components and to reproduce the correlations. PCA is
far more common than PFA, however, and it is common to use
"factors" interchangeably with "components."
4. Factor loadings: The factor loadings, also called component
loadings in PCA, are the correlation coefficients between the
variables (rows) and factors (columns). Analogous to Pearson's r,
the squared factor loading is the percent of variance in that
variable explained by the factor. To get the percent of variance in
all the variables accounted for by each factor, add the sum of the
squared factor loadings for that factor (column) and divide by the
number of variables. (Note the number of variables equals the
sum of their variances as the variance of a standardized variable
is 1.) This is the same as dividing the factor's eigen value by the
number of variables. In SPSS, the factor loadings are found in a
matrix labelled Factor Matrix if PFA is requested, or in one
labelled Component Matrix if PCA is requested, or one labelled
Pattern Matrix if an oblique rotation is requested.

The sum of the squared factor loadings for all factors for a given variable
(row) is the variance in that variable accounted for by all the factors, and this
is called the communality. In a complete PCA, with no factors dropped, this
will be 1.0, or 100% of the variance. The ratio of the squared factor loadings
for a given variable (row in the factor matrix) shows the relative importance
of the different factors in explaining the variance of the given variable. Factor
loadings are the basis for imputing a label to the different factors
5. Communality, h2, is the squared multiple correlation for the
variable using the factors as predictors. The communality
measures the percent of variance in a given variable explained by
all the factors jointly and may be interpreted as the reliability of
the indicator.
When an indicator variable has a low communality, the factor
model is not working well for that indicator and possibly it
should be removed from the model. However, communalities
must be interpreted in relation to the interpretability of the
factors. A communality of .75 seems high but is meaningless
unless the factor on which the variable is loaded is interpretable,
though it usually will be. A communality of .25 seems low but
may be meaningful if the item is contributing to a well-defined
factor. That is, what is critical is not the communality coefficient
per se, but rather the extent to which the item plays a role in the
interpretation of the factor, though often this role is greater when
communality is high. Communality for a variable is
computed as the sum of squared factor loadings for that variable
(row). Recall r-squared is the percent of variance explained, and
since factors are uncorrelated, the squared loadings may be
added to get the total percent explained, which is what
communality is. For full orthogonal PCA, the communality will
be 1.0 for all variables and all of the variance in the variables
will be explained by all of the factors, which will be as many as
there are variables. In the communalities chart, SPSS labels this
column the "initial" communalities. The "extracted"
communality is the percent of variance in a given variable
explained by the factors which are extracted, which will usually
be fewer than all the possible factors, resulting in coefficients
less than 1.0. For PFA, however, the communalities for the
 various factors will be less than 1 even initially. Communality
does not change when rotation is carried out, hence in SPSS
there is only one communalities table.
6. Eigen Values: Also called characteristic roots . The eigenvalue
for a given factor measures the variance in all the variables
which is accounted for by that factor. The ratio of eigenvalues is
the ratio of explanatory importance of the factors with respect to
the variables. If a factor has a low eigenvalue, then it is
contributing little to the explanation of variances in the variables
and may be ignored as redundant with more important factors.
Thus, eigenvalues measure the amount of variation in the total
sample accounted for by each factor. Note that the eigenvalue is
not the percent of variance explained but rather a measure of
"amount," used for comparison with other eigenvalues. A factor's
eigenvalue may be computed as the sum of its squared factor
loadings for all the variables. Note that the eigenvalues
associated with the unrotated and rotated solution will differ,
though their total will be the same.

7.Trace :is the sum of variances for all factors, which is equal to
the number of variables since the variance of a standardized
variable is 1.0. A factor's eigenvalue divided by the trace is the
percent of variance it explains in all the variables, usually
labeled percent of trace in computer output. Computer output
usually lists the factors in descending order of eigenvalue, along
with a cumulative percent of trace for as many factors as are
extracted.
8. Factor scores: Also called component scores in PCA, factor
scores are the scores of each case (row) on each factor (column).
To compute the factor score for a given case for a given factor,
one takes the case's standardized score on each variable,
multiplies by the corresponding factor loading of the variable for
the given factor, and sums these products. The SPSS FACTOR
procedure saves standardized factor scores as variables in your
working data file. By default it will name them
FAC1_1,FAC2_1, FAC3_1, etc., for the corresponding factors
(factor 1, 2 and 3) of analysis 1; and FAC1_2, FAC2_2, FAC3_2
for a second set of factor scores, if any, within the same
procedure, and so on. Although SPSS adds these variables to the

right of your working data set automatically, they will be lost

when you close the dataset unless you re-save your data.Criteria
for determining the number of factors, roughly in the order of
frequency of use in social science

9.Kaiser criterion: A common rule of thumb for dropping the

least important factors from the analysis. The Kaiser rule is to
drop all components with eigen Values under 1.0. Kaiser
criterion is the default in most computer programs.

10. Scree plot: The Cattell scree test plots the components as the
X axis and the corresponding eigenvalues as the Y axis. As one
moves to the right, toward later components, the eigenvalues
drop. When the drop ceases and the curve makes an elbow
toward less steep decline, Cattell's scree test says to drop all
further components after the one starting the elbow. Scree plot
example
11. Variance explained criteria: Some researchers simply use the rule
of keeping enough factors to account for 90% (sometimes 80%) of the
variation.

12.Rotation Methods: Rotation serves to make the output more

understandable and is usually necessary to facilitate the interpretation
of factors. The sum of eigen values is not affected by rotation, but
rotation will alter the eigen values of particular factors. No rotation is
the default in SPSS, but it is a good idea to select a rotation method,
usually varimax. The original, un-rotated principal components solution
maximizes the sum of squared factor loadings, efficiently creating a set
of factors which explain as much of the variance in the original
variables as possible. The amount explained is reflected in the sum of
the eigen values of all factors. However, un-rotated solutions are hard
to interpret because variables tend to load on multiple factors.

13.Varimax rotation: is an orthogonal rotation of the factor axes to

maximize the variance of the squared loadings of a factor (column) on
all the variables (rows) in a factor matrix, which has the effect of
differentiating the original variables by extracted factor. That is, it
minimizes the number of variables which have high loadings on any
one given factor. Each factor will tend to have either large or small
loadings of particular variables on it. A varimax solution yields results
which make it as easy as possible to identify each variable with a single
factor. This is the most common rotation option.

14.Quartimax rotation: is an orthogonal alternative which minimizes

the number of factors needed to explain each variable.
 15.Equimax rotation: is a compromise between Varimax and
Quartimax criteria.

16.Direct oblimin rotation: is the standard method when one wishes a

non-orthogonal solution -- that is, one in which the factors are allowed to
be correlated. This will result in higher eigenvalues but diminished
interpretability of the factors. See below.

17.Promax rotation is an alternative non-orthogonal rotation method

which is computationally faster than the direct oblimin method and
therefore is sometimes used for very large datasets.
2.7 S.W.O.T. ANALYSIS
In a few words: If you know your strengths and weaknesses and understand
the opportunities and threats you have, then you can do something about
them.
In its simplest form, a SWOT analysis can be understood as the examination
of an organization's internal strengths and weaknesses, and its environments
opportunities, and threats. It is a general tool designed to be used in the
preliminary stages of decision-making and as a precursor to strategic planning
in various kinds of applications (Johnson et al., 1989; Bartol et al., 1991). An
understanding of all external factors, (threats and opportunities) together with
an internal examination of strengths and weaknesses assists in forming a
vision of the future.

Why use it?

To develop a plan or find a solution that takes into consideration many
different internal and external factors, and maximizes the potential of the
strengths and opportunities while minimizing the impact of the weaknesses
and threats.
When to use it?
While developing a strategic plan or planning a solution to a problem, after
you have analysed the external environment (for example, the culture,
economy, competition, technical ability, sources of funding, demographics,
etc.).
SWOTs can be performed by managers, designers or by the entire project
team. Group techniques are particularly effective in providing structure,
objectivity, clarity and tend to focus discussions about strategy that might
otherwise tend to wander.
How to use it:
1. Internal Analysis: Examine the capabilities of your organization.
Carefully examine all your strengths and weaknesses. Draw ideas from
projects that you have both successfully and unsuccessfully completed.
2. External Analysis: Look at the main points in the environmental analysis,
and identify those points that pose opportunities for your organization, and
those that pose threats or obstacles to performance. Carefully examine the
market in which you intend to launch the product and analyse what the status
of the competition.
3. Make a worksheet by creating four quadrants: one each for strengths,
weaknesses, opportunities, and threats. The next step is to list specific items
related to the problem at hand, under the appropriate heading in the
worksheet. It is best to limit the list to 10 or fewer points per heading and to
avoid over-generalizations (Johnson et al., 1989). If more items are thought
of, try to prioritise them so that you list only the 10 top items for each
category.
The Potential Drawbacks of SWOT
SWOTs usually reflect a person's existing position and viewpoint, which can
be misused to justify a previously decided course of action rather than used as
a means to open up new possibilities. It is important to note that sometimes
threats can also be viewed as opportunities, depending on the people or
groups involved. “An optimist is one who sees an opportunity in every
difficulty. A pessimist is one who sees difficulty in every opportunity.”
- Sir Winston Churchill -
SWOTs can allow companies to take a lazy course and look for 'fit' rather
than to 'stretch'; they look for strengths that match opportunities yet ignore the
opportunities they do not feel they can use to their advantage. A more active
approach would be to involve identifying the most attractive opportunities
and then plan to stretch the company to meet these opportunities. This would
make strategy a challenge to the organisation rather than a fit between its
existing strengths and the opportunities it chooses to develop (Glass,1991).
3.1 INDUSTRY PROFILE
Right from our morning tea to our evening snacks, biscuit is one thing that
compliments everything. By replacing sweets it has become one of the
important parts of Indian family. With the dynamics of 2000 crores and 20
lakhs tonnes the industry is growing by 12 per cent CAGR year on year.
Players like Parle, Britannia, and ITC are dominating the market with their
products in various categories like Marie, Cookies, Crackers, Glucose, Milk,
Cream and others."

The biscuit category, as per Euromonitor report (2010), is worth Rs 10,782

crore, and is growing at the rate of over six per cent. Meanwhile, the
sandwich biscuit category is worth Rs 1,466 crore and is expected to grow
faster than the overall biscuit category at the rate of over 10 per cent. The
biscuit category is largely dominated by local players with Britannia leading
the pack with 35 per cent share, closely followed by Parle with 33 per cent
share and ITC’s Sunfeast with 11.5 per cent share. Cadbury, before the launch
of Oreo, had a small share of 1.4 per cent in the biscuit market with its
chocolate filled biscuits - Bytes.

Indian Biscuit Industry

The fact that the premium segment is growing, is making lots of players put
innovative products in this particular segment. The other players in the
industry are Cadbury with the launch of Kraft’s Oreo, PepsiCo, Priya Gold,
Cremica, Anmol, Dukes, besides various regional players. The Biscuit
industry like the others, is also switching from the ‘volume’ game to the
‘value’ game. With dozens of variants in biscuits companies are also price
cautious. By outsourcing manufacturing of Oreo to local players Kraft Foods
is cutting costs so that customer can experience Oreo biscuits for Rs 6. Also
adding to the taste Unibic is launching a ‘chyawanprash’ biscuit this year
giving customers a different experience. This story takes you through the
changing trends in various categories of biscuit that includes cookies,
crackers, etc.

Cream and Cookies (Segment under our study) :

Cream biscuits and crackers have traditionally been positioned for the upper
segment of the market. The major players Parle, Britannia and ITC have had
most of this market share amongst themselves. Parle has traditionally been
playing the volume game by settling for lower margins in this segment. But
ITC and Britannia have always positioned cream biscuits and crackers for the
upper portion of their target segment. Cream biscuits from both Britannia and
Sunfeast cost close to Rs 10 for 100 grams. Parle, however, only charges Rs 5
for its cream variants. Except for Hide and Seek, Parle has not taken a
different strategy to this segment. The strategy of Parle has for the most part
been the market penetration.

The erstwhile three party domination in this segment is under threat and the
competition in this segment is poised to increase significantly with the entry
of international companies such as the world’s number one confectionary
maker, Kraft and soft drink giant PepsiCo. . This is not surprising considering
that the biscuit market in India is worth 12600 Crore and still growing at a
fast pace. Kraft Food’s Oreo brand is the largest (by value) and the most
popular biscuits/cookies worldwide – especially in US, Europe and China.
Now, they are set to be manufactured in India, via Kraft Food’s latest
acquisition Cadbury India arm. GSK has launched high-end cream and
cookies under its Horlicks brand, UK’s united biscuits have brought its
digestive biscuit McVitie’s to India and PepsiCo is all set to launch a healthy
oat-based cookie. In a nutshell, this high-end biscuit segment is starting to get
crowded with the entry of MNC’s.
Indian biscuit industry has for long been dominated by the glucose segment,
but, the cream and cracker biscuits and other healthy variants are gaining
prominence in the recent years. The cookie and cream segment is growing at
an impressive rate of 25-30% in comparison with the functional segment
(digestive and glucose biscuits) which is growing at an 8% rate according to a
recent study by the ICFAI business school. The product position of a segment
has a lot to do with where the market is going to be and a quick comparison
with a mature market like that of the UK, will give us a good indication of
where the Indian biscuit market is going to be in the near future.

A recent research by Mintel (a Market Research Firm) on the UK biscuit

market suggests a healthy trend in the sales of nutritional biscuits, crackers
and cream biscuits. Within the UK sweet biscuits market, ‘healthier’ biscuits
(which include lower fat and sugar varieties) dominate sector sales (£468
million), accounting for as many as a quarter of all sweet biscuits sales and
increasing an impressive 16% between 2008 and 2010. Meanwhile,
‘chocolate biscuit countlines’ (biscuits which are individually wrapped) are
the second biggest sellers (£381 million), followed by ‘everyday treat’
biscuits, the third largest sector at £304 million, according to the mintel report
.

A good look at this trend indicates the potential of the cream, cracker segment
and the nutritional biscuits. These could be indications of how the Indian
market is poised to shape up in the near future. With the demographic
dividend, one would expect India to grow significantly in these cream and
cracker segments meant for the younger generation.

The competitive scenario in the biscuit industry has indeed taken a nice turn
with the entry of these MNC’s. However, it remains to be seen what kind of
impact they can make in a market like India, where the game has traditionally
revolved around pricing and distribution given that there is no significant
product differentiation. Also, the MNCs entering India are targeting only the
high end market through these cookies and cream biscuits, which might be a
tricky move, considering that cream biscuits and crackers still account for less
than 30% of the market in spite of the impressive growth rates discussed
above.

Moving ahead and looking at the industry operations, there seem to be a

variety of issues that the industry as a whole needs to contend with. First
being the high increase in the cost of raw materials and the competitive nature
of the marketplace which doesn’t allow any price response to increasing input
costs. The high variation in the tax rates across various states is another issue
of importance. The Federation of Biscuits Manufacturers of India (FBMI)
urges the Central government to reconsider its decision to include biscuits in
the category of Revenue Neutral Rate (RNR), and levy 12.5% value added
tax. It will be interesting to see how these issues are being addressed by the
major players, with the international entrants adding to the competition.

BISCUIT INDUSTRY IN INDIA-STATUS PAPER

1. Annual Growth:
 The biscuit industry in India witnessed annual growth as below:-

2005-06 - 14%
2006-07 - 13%
2007-08 - 15%
2008-09 - 10%
2009-10 - 14%
2010-11 - 15%

The biscuit industry has been growing almost at static level during the last
decade. However, production of Biscuits witnessed steep decline to 10% in
2008-09 and further to 14% in 2009-10 and 15% in 2010-11, Indian Biscuit
Manufacturers’ Association (IBMA) estimate biscuit industry to grow in the
range of 15% to 18%in ensuing five years.

2. Annual Production:
The organized biscuit manufacturing industry‘s annual production figures
are given below:
(In Lakh Metric Tonnes)

2005-06 - 14.29
2006-07 - 16.14
2007-08 - 17.44
2008-09 - 16.57
2009-10 - 18.25
2010-11 - 19.10
 
3. Segments:
The organized and unorganized sector of the biscuit industry is in the
proportion of 65%:35% ratio.
·         EXPORTS of Biscuit was 10% of the annual production during
 the year 2007-08, which declined to around 7% in 2008-09 and
witnessed higher growth of 12% and 15% in 2009-10 and 2010-11,
respectively.
·         IMPORTS of biscuits into India has not shown any significant
growth during the last two years and has not affected
production/sales by the Indian Biscuit industry.

4.Rural-Urban penetration growth of Biscuit:

Urban Market: 75% to 85%
Rural Market: 50% to 65%

5.Marketing
Wholesale and Retail marketing in the Biscuit industry is carried out with a
network of C & F Agencies (for States and specific Districts), Dealers /
Wholesalers and Retail shops.
 
6.Hike in cost of production
Biscuit Industry especially the Small & Medium Sector, consisting of
around 150 units are facing erosion in their profitability and competitive
capability, due to Steep hike in cost of production on account of increase in
prices of major raw materials, i.e. Wheat Flour Veg. Oil, Sugar, Milk,
Packaging Materials, Fuel. Wages, etc. Recent increase in prices of
Petrol/Diesel in May 2008 has further resulted in cost push.
 

7.Value Added Tax

Imposition of Value Added Tax (VAT) by the State Governments @ 12.5%
compared to VAT at 4% / 0% levied on other similar food products has also
adversely affected biscuit industry.
On behalf of the industry, IBMA has been pursing the issue with the Chief
Ministers/Finance Ministers of all States and also with the Chairman of the
Empowered Committee on VAT, seeking reduction in the rate of VAT on
biscuit to 4%. IBMA delegations have already met Shri Asim Dasgupta,
Chairman, Empowered Committee on VAT, as well as Deputy Chief
Ministers & Finance Ministers of Bihar, Orissa, Jharkhand, Punjab,
Haryana, Delhi, Andhra Pradesh, and officials of Uttar Pradesh etc. While
most of the State Ministers have expressed their support of IBMA’s
representation, however the issue has not so far received favourable
consideration by the Empowered Committee on VAT.
IBMA estimates annual growth in the range of 20% to 25% and above in the
event of reduction in the rate of VAT on Biscuits to 4%.
With introduction of Goods and Services Tax (GST) slates for 2012, the
industry look forward to relief in the incidence of higher taxation burden.
PER CAPITA CONSUMPTION of Biscuits in the country is only 1.8 kg,
as compared to 2.5 kg to 5.5 kg in South East Asian countries and European
countries, and 7.5 kg USA

8.Pattern of Biscuit Consumption (On Zonal basis) in the country are as

below:
Northern Zone - 26%
Western Zone - 24%
Southern Zone - 23%
East and North
East Zone - 27%
(Including N. East)
The per capita consumption as well as pattern of consumption in the four
regions, as shown above, will also increase considerably, in case the
industry’s plea for reduction in the rate of Value Added Tax (VAT) from
12.5% to 4% is acceded to.
9.Main Categories: of Biscuits are broadly as under:
Glucose, Marie, Sweet, Cream & Milk

10. Popular Brands :of Biscuits in the country are, Britannia, Parle,
Priyagold, Anmol, Sunfeast, Biskfarm, Dukes, Cremica, Priya, Veeramani,
Bonn, Bhagwati, Raja, Sobisco, Madhabi, Nezone, Ankit, Nalanda, etc.

3.2 COMPANY PROFILE

Cadbury India Ltd. is a part of Kraft Foods. Cadbury India operates in five
categories – Chocolate confectionery, Beverages, Biscuits, Gum and Candy.
In the Chocolate Confectionery business, Cadbury has maintained its
undisputed leadership over the years. Some of the key brands are Cadbury
Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls,
Éclairs, Bubbaloo, Tang and Oreo. Our core purpose "make today delicious"
captures the spirit of what we are trying to achieve as a business.

In India, Cadbury began its operations in 1948 by importing chocolates. After

over 60 years of existence, it today has six company-owned manufacturing
facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and
Baddi (Himachal Pradesh) Hyderabad and 4 sales offices (New Delhi,
Mumbai, Kolkata and Chennai). The corporate office is in Mumbai.

Cadbury India enjoys a value market share of over 70 percent in the chocolate
category and our brand Cadbury Dairy Milk (CDM) is considered the "gold
standard" for chocolates in India. The pure taste of CDM defines the
chocolate taste for the Indian consumer.

In the Milk Food drinks segment our main product is Bournvita - the leading
Malted Food Drink (MFD) in the country. Similarly in the medicated candy
category Halls is the undisputed leader. We recently entered the biscuits
category with the launch of the Worlds No 1 biscuit brand Oreo.

Since 1965 Cadbury has also pioneered the development of cocoa cultivation
in India. For over two decades, we have worked with the Kerala Agricultural
University to undertake cocoa research and released clones, hybrids that
improve the cocoa yield. Our Cocoa team visits farmers and advises them on
the cultivation aspects from planting to harvesting. We also conduct farmer
meetings & seminars to educate them on Cocoa cultivation aspects. Our
efforts have increased cocoa productivity and touched the lives of thousands
of farmers. Hardly surprising then that the Cocoa tree is called the Cadbury
tree!

Oreo is product of Kraft Foods, which acquired Cadbury in January 2010.

Kraft Foods has been riding high in Asia Pacific with Oreo. Oreo has tripled
its business in the region in just three years, with markets such as China
leading the way. At present the Indian market is among the top 10 priority
markets for Kraft Foods Group.

Launched in India in March 2011 the delicious combination of dark chocolate

biscuit and vanilla cream was first introduced to the world in 1912. That
original formula was so perfect that it has hardly been modified since. Each
year more than 7.5 billion Oreo Biscuits are eaten, making it the world’s No.
1 biscuit. Paired with a glass of milk, it is the perfect snack.

Bonding over biscuits

Cadbury’s latest launch Oreo is focusing on the households, which are heavy
consumers of cream biscuits. In other words, the brand’s primary target
audience are the 10 million households that contribute 70 per cent of cream
and biscuit sales. While the rest 30 per cent is consumed by households which
are not a heavy consumer of cream biscuits. These households are not in the
focus lens of Oreo. 
Cadbury has positioned Oreo as a family brand. And that’s why the
communication of the brand stresses on a special way of enjoying Oreo
cookies ‘Twist, Lick and Dunk ritual’ as they call it. Chandramouli
Venkatesan – Director, Snacking and Strategy, Cadbury India, says,
“Through our marketing, we want to engage Indian parents and kids with the
child like delight. That’s why the campaigns revolve around families bonding
over Oreo”.

Twist, Lick, Dunk! (TLD) guide

You don’t just eat an Oreo, you enjoy it. So here’s the official guide to Twist,
Lick, Dunk!
Step 1: Grab your Oreo biscuit. Holding each chocolatey biscuit, twist them
in opposite directions. Now gently pull them apart revealing the shiny vanilla
cream!

Step 2: Lick the creamy filling right away. This is the simplest part isn’t it?
Don’t lick it all off, leave some for the dunk!

Step 3: Put the two biscuit halves together. Now, holding it with your
fingertips, dip the whole Oreo in your full glass of milk. Let it soak in the
milky goodness before you chew it away.

Oreo facts:

There’s a lot of exciting stuff about Oreo you may not know yet. Here’s a list
of them to surprise your friends with

 The design on every

 Oreo biscuit consists of 12 flowers, 12 dots and 12 dashes per side.
 Because everybody twists, licks and dunks their Oreo’s, somebody
actually invented a Biscuit Dunker, designed to keep your fingers from
getting wet when you dunk your Oreo Biscuit into the glass of milk.
 The first Oreo biscuit was sold in 1912.
 If every Oreo Biscuit ever made were stacked on top of each other, the
pile would reach to the moon and back more than five times.
 50% of Oreo biscuit eaters twist their biscuit apart before eating it,
with women twisting them open more often than men.
 If all the Oreo biscuits ever made were placed side-by-side, they would
encircle the earth 381 times at the equator.
 The crème filling used in Oreo biscuits in one year could ice all the
wedding cakes served in the United States for two years! That's
4,724,000 three-tier wedding cakes.
 Oreo is sold in over a 100 countries and is the best- selling biscuit of
the 21st Century.
 Approximately 25 billion Oreos are eaten per year. (That’s about 70
million per day, or 800 per second!).
 The Oreo ritual also seems in sync with the Indian habit of dunking
biscuits in tea and milk and that’s what Oreo is looking to capitalise on,
while vying to capturing the mindshare of families in this highly
competitive market.
 The company has used a mix of TVCs, outdoor campaigns, on-ground
activation and digital outreach for its launch, however the major thrust
has been on TV. The TVC of Oreo was launched during Cricket world
cup 2011 to grab maximum eyeballs. The TVC played on all major
channels in Hindi, Bengali, Marathi, Tamil, Kannada, Telugu and
Malayalam. Market reports suggest that Cadbury has allocated one of
its largest marketing spends on Oreo, however, the company refused to
disclose the numbers.
 Multiple price point game
 Oreo is targeting different consumers through different Stock Keeping
Units (SKUs) available at Rs 5 for three biscuits; Rs 10 for seven
biscuits; and Rs 20 for 14 biscuits covering impulse, family sharing and
heavy usage.
 CR Vinay, Founder & MD of Customer Centria (a Customer
Experience and Engagement Company) feels, “These SKUs will help
Oreo cater to the different needs of different set of consumers. It is the
right way to approach the market and will help the brand to reach out a
wider audience.”
 Chitrangda Kapur, FMCG analyst at Angel Broking feels, “Small
SKUs will help Oreo tap on-the-go consumption. With the small pack
priced at Rs 5, the brand is aiming to lure consumers that generally buy
quick snacks to be consumed on the move.” To achieve this affordable
pricing, Oreo is being manufactured locally.
 These low priced SKUs (of Rs 5 and Rs 10) are also helping the trial
purchase of the biscuit. Clearly, Oreo is looking at a volume driven
growth in the country and the low priced small packs may help the
brand achieve that objective.
  However, there is a risk for Oreo to lose its premium image. M
Unnikrishnan, MD, Brand Finance, says, “Low priced packs will
destroy Oreo’s premium image. This is what I call subliminal
discounting of value and I think Oreo will end up being negatively
affected by this strategy.”

 The distribution push

Oreo is also relying on strong distribution push to make its presence
felt. The brand is focusing both on modern and retail trade. Cadbury’s
Venkatesan says, “India is the best example of a market that has not
only traditional trade but also modern trade. Oreo will therefore be
widely available to consumers - at hundreds of thousands of retail
 outlets across urban and semi urban markets in attractive packaging at
affordable price points.”
 Even a senior executive from a competitive brand appreciates the
distribution strategy of Oreo as he says, “Cadbury has done a fabulous
job in terms of distributing Oreo. They are relying on the ‘distribution
Push advertising pull’ strategy. This has given them initial kick and
trial sales. Now how they go ahead from here will be a bigger
challenge.” 
 Going forward, the biggest challenge for Oreo will be to convert the
trials to repeat purchases and penetrate the market deeper in the Tier-II
& III cities in the country, especially when the brand is looking at a
volume game and not getting into the premium space. Angelbroking’s
Kapur agrees, “The challenge for Oreo will be to gain market share
once the trial purchase is over.” Thus retail trade will play a huge role
in Oreo’s success or otherwise.
 
 Where is the differentiation?
The competitive space in the cream biscuit category is really intense. It
is notable that Britannia’s and ITC’s Sunfeast already have similar
products, which have a strong footing in the market. Britannia’s Treat-
O and Pure Magic and Sunfeast’s Dark Fantasy dominate this space. In
such a scenario, it was very difficult yet important for Oreo to
differentiate itself from these products. However, experts are of the
view that unfortunately the brand has failed on this point. Brand
Finance’s Unnikrishnan says, “From a product perspective, Oreo has
no differentiation than what the existing players are already offering.
Being a brand of such a stature, I expected Oreo to offer benefits based
specifically on the Indian consumer’s insight. Maybe something more
healthy or wholesome offering as there is this notion that consuming
too much biscuits by kids is not healthy. But it is quite disappointing to
 see that a brand as big as Oreo is simply trying to play on its global
proposition and not doing anything differently for a market which is so
unique.”

 On the contrary, Oreo claims that its success in global markets is based
on deep local consumer understanding and insights – making it locally
relevant. “In India, we are launching Oreo in its classic flavour - dark
chocolate biscuit with smooth vanilla crème – based on consumer
insights that show Indian consumers responding enthusiastically to the
product,” says Venkatesan.
 However, going forward, how Oreo innovates in terms product and
marketing coupled with efficient reach deeper in the country will
decide the brands’ success or otherwise in the Indian market.
 ANALYIS
BASED ON
THE SURVEY

DESCRIPTIVE
STATISTICS
 &
INFERENTIAL
STATISTICS
 AGE GROUP

Valid Cumulative
Frequency Percent Percent Percent
Valid 15-29 134 47.0 47.0 47.0
years
30-44 97 34.0 34.0 81.1
years
45-59 54 18.9 18.9 100.0
years
Total 285 100.0 100.0

INTERPRETATION

We can observe from the frequency dstribution and the graph that the
respondents of the survey are in majority with 134, from the age group 15-29.
We have 97 respondents from the age group 30-44 years and 54 respondents
from the age group 45-59 years. This frequency is corresponding to the
proportion of people falling into the particular age-groups in the actual
population of Delhi as we have taken a stratified sampling on age.
 GENDER

Valid Cumulative
Frequency Percent Percent Percent
Valid Male 112 39.3 39.3 39.3
Female 173 60.7 60.7 100.0
Total 285 100.0 100.0

INTERPRETATION

From the above graph we can observe the distribution of male and female in
our sample. We can observe that there are majority of females in the sample.
There are 173 females in the sample and 112 males. The above frequencies
correspond to 60.70% females and 39.30% males.
 MARITAL STATUS

Valid Cumulative
Frequency Percent Percent Percent
Valid Married with 68 23.9 23.9 23.9
Children
Married Without 26 9.1 9.1 33.0
Children
Unmarried 191 67.0 67.0 100.0
Total 285 100.0 100.0

INTERPRETATION

We can observe that 191(majority) of respondents in the sample are

unmarried. Then the next most occurring group is married with children with
a frequency of 68. The least frequency of 26 is of the group married without
children.
 OCCUPATION

Frequenc Valid Cumulative

y Percent Percent Percent
Vali Student in school 4 1.4 1.4 1.4
d Student in college 139 48.8 48.8 50.2
Self-employed 14 4.9 4.9 55.1
-Business
Self-Employed 9 3.2 3.2 58.2
-Professionals
Service 88 30.9 30.9 89.1
Housewife 12 4.2 4.2 93.3
Others 19 6.7 6.7 100.0
Total 285 100.0 100.0

INTERPRETATION

From the above we can observe that the majority (139) are students from
college. The second largest group in terms of occupation is that of
respondents in service (88). Least number of respondents are student in
school.
 HOUSEHOLD INCOME

Valid Cumulative
Frequency Percent Percent Percent
Valid 1-2.5 lacs 39 13.7 13.7 13.7
2.5-5 lacs 47 16.5 16.5 30.2
5-10 lacs 94 33.0 33.0 63.2
10-15 lacs 52 18.2 18.2 81.4
>15 lacs 53 18.6 18.6 100.0
Total 285 100.0 100.0

INTERPRETATION

It is observed that in the sample, we have maximum (94) respondents whose

household income is between 5-10 lacs p.a. The minimum (39) respondents
have household income 1-2.5 lacs. There rest of the respondents are
distributed between these two values, in terms of frequency.
 TYPE OF BISCUITS

Frequenc Valid Cumulative

y Percent Percent Percent
Valid Cream 26 9.1 9.1 9.1
Non- 41 14.4 14.4 23.5
Cream
Both 218 76.5 76.5 100.0
Total 285 100.0 100.0

INTERPRETATION

In the sample we can observe that 218 respondents like both cream and non-
cream biscuits. 26 respondents like only cream biscuits and 41 like only non-
cream biscuits.
 PREFERENCE AMONG NON-CREAM BISCUITS
Non-Cream Biscuits Frequency
Salted 105
Crackers 84
Sweet-Salted 87
Wafer Biscuits 92
Digestive 110
Glucose 80
Flavoured Biscuits 123
Cream Only 26
Others 8

PREFERENCE AMONG NON-CREAM BISCUITS

Cream Only Others

4% 1%
Salted
Flavoured Biscuits 15%
17%

Crackers
12%
Glucose
11% Sweet-Salted
12%

Digestive
15%

Wafer Biscuits
13%

INTERPRETATION

We can observe that among non-cream biscuits maximum preference is

towards flavoured biscuits, with 17% of the respondents preferring flavoured
biscuits. The next most preferred is the digestive biscuits.

Note: In this case we use pie charts and show values as a percentage as
respondents had the options of ticking multiple options. The frequency thus
would be above the sample size of 285.

PREFERENCE AMONG NON-CREAM BISCUITS

  Cream Biscuits Frequency
Orange 64
Strawberry 47
Chocolate 204
Vanilla 98
Non-Cream Only 42
Others 17

PREFERENCE AMONG CREAM BISCUITS

4%
9% 14%

Orange
Strawberry
10%
Chocolate
21% Vanilla
Non-Cream Only
Others

43%

INTERPRETATION

We can observe that 43% respondents give preference to chocolate cream

biscuits. 21% of the respondents prefer vanilla cream biscuits, the second
preferred.

Note: In this case we use pie charts and show values as a percentage as
respondents had the options of ticking multiple options. The frequency thus
would be above the sample size of 285.

PREFERENCE OF BRAND
 Brand Frequency
 Britannia 237
Parle 156
Cadbury 76
Horlicks 9
Priya Gold 25
Sunfeast 129
Others 15

Preference of Brand
2%

20% Britannia
Parle
37% Cadbury
Horlicks
4% Priya Gold
Sunfeast
1% Others

12%

24%

INTERPRETATION

37% of the respondents have Britannia as the most preferred brand that they
purchase. Parle is the second most preferred brand for purchase with 24% of
the sample giving preference to Parle.

Note: In this case we use pie charts and show values as a percentage as
respondents had the options of ticking multiple options. The frequency thus
would be above the sample size of 285.

PREFERENCE OF BEVERAGE
Beverage Frequency
 Tea 181
Coffee 69
Milk 55
Without Anything 143
others 4

Preference of Beverage
1%

32% Tea
Coffee
40%
Milk
Without Anything
others

12%

15%

INTERPRETATION

40% of the respondents have tea as their preference of beverage which they
have with biscuits. 32% respondents say that they do not have biscuits with
anything.

PREFERENCE OF DIPPING/NON-DIPPING
Preference Of Dipping/
Non-Dipping   Frequency
 Dipping Biscuits in Tea 130
Dipping Biscuits in Coffee 35
Dipping Biscuits in Milk 37
Without Dipping 152
Without Beverage 47
Others 2

PREFERENCE OF DIPPING/NON-DIPPING
0%
12%

32% Dipping Biscuits in Tea

Dipping Biscuits in Coffee
Dipping Biscuits in Milk
Without Dipping
Without Beverage
Others
38%

9%

9%

INTERPRETATION

38% (majority) respondents prefer having biscuits without dipping in

beverage. 32% respondents prefer having biscuits without any beverage.
 PREFERENCE OF TIME OF CONSUMPTION
Time Of Consumption Frequency
Breakfast 50
Between Meals 50
Evening Tea 144
Post Dinner 12
Anytime of the Day 100

PREFERENCE OF TIME OF CONSUMPTION

14%

28%
Breakfast
Between Meals
14% Evening Tea
Post Dinner
Anytime of the Day

3%

40%

INTERPRETATION

41%(majority) respondents prefer consuming biscuits during tea time. 28%

say that the time of consumption of biscuits can be any time of the day. An
equal percentage of 14% of respondents say that they consume biscuits at
breakfast time or between meals.
 PREFERENCE OF ACTIVITY FOR CONSUMPTION OF
BISCUITS
 Activity Frequency
Studying 59
Travelling 39
Working 32
Watching T.V 90
Playing 7
No Fixed activity 157
Others 11

PREFERENCE OF ACTIVITY FOR CONSUMPTION OF BISCUITS

3%
15%

Studying
Travelling
10% Working
40% Watching T.V
Playing
No Fixed activity
8% Others

23%
2%

INTERPRETATION

In the sample 39% say that they do not have any fixed activity during which
they consume biscuits. 23% said that they like consuming biscuits while
watching television. The least preferred activity is playing, with only 2%
respondents preferring this particular activity.
PREFERENCE OF PLACE FOR PURCHSASE OF BISCUITS

Place Of Purchase Frequency

Local Kirana 143
General Store 122
Super Markets 105
Hyper Markets 97

PREFERENCE OF PLACE OF PURCHASE

Hyper Markets Local Kirana

21% 31%

Super Markets
22%
General Store
26%

INTERPRETATION

In the sample there are 31% respondents who prefer purchasing biscuits from
local kirana shops. 26% respondents prefer purchasing from general stores.
22% prefer purchasing biscuits from super markets. 21% prefer purchasing
from hyper market.
 FOR WHICH GROUP THE BISCUITS ARE PURCHASED IN THE

FAMILY

Group Frequency
Personal Use 160
Children Below 13 4
Children Above 13 4
Family 180
Never Bought 0

FOR WHICH GROUP BISCUITS ARE PURCHASED FOR IN THE

HOUSEHOLD
Personal Use Children Below 13 Children Above 13
Family Never Bought

46%
52%

1% 1%

INTERPRETATION

In the sample it observed that respondents purchase biscuits either for their
individual consumption or for family consumption. There is no respondent
who has not bought biscuits at all.
 PREFERENCE OF SIZE OF PACK

Size Of Frequen
Pack cy
Family
Pack 59
Large
Pack 99
Small Pack 115
Mini Pack 12

PREFERENCE OF SIZE OF PACK

Family Pack Large Pack Small Pack Mini Pack

4%

21%

40%

35%

INTERPRETATION

40% prefer purchasing small sized packs. 35% respondents prefer large sized
packs. 21% prefer family packs. 4% prefer mini packs.
 FACTOR
ANALYSIS
ATTRIBUTE
WISE
ANALYSIS
 ATTRIBUTE 1 : ADVERTISEMENT

Cumulative
Frequency Percent Valid Percent Percent

Valid not at all important 33 11.6 11.6 11.6

least important 58 20.4 20.4 31.9

little important 109 38.2 38.2 70.2

important 65 22.8 22.8 93.0

most important 20 7.0 7.0 100.0

Total 285 100.0 100.0

N Valid 285

Missing 0

Mean 2.93

Std. Deviation 1.084

Variance 1.175
INTERPRETATION

109 respondents said that advertisements was little important for them, while
making a decision to buy biscuits.

ATTRIBUTE 2: PRICE

Cumulative
Frequency Percent Valid Percent Percent

Valid not at all important 30 10.5 10.5 10.5

least important 30 10.5 10.5 21.1

little important 75 26.3 26.3 47.4

Important 105 36.8 36.8 84.2

most important 45 15.8 15.8 100.0

Total 285 100.0 100.0

N Valid 285

Missing 0

Mean 3.37

Std. Deviation 1.181

Variance 1.395
INTERPRETATION
105 respondents said that it was important for them to consider price when
they were purchasing biscuits.

ATTRIBUTE 3:FAMLIY LIKES IT

Cumulative
Frequency Percent Valid Percent Percent

Valid not at all important 16 5.6 5.6 5.6

least important 22 7.7 7.7 13.3

little important 65 22.8 22.8 36.1

Important 87 30.5 30.5 66.7

most important 95 33.3 33.3 100.0

Total 285 100.0 100.0

N Valid 285

Missing 0

Mean 3.78
 Cumulative
Frequency Percent Valid Percent Percent

Valid not at all important 16 5.6 5.6 5.6

least important 22 7.7 7.7 13.3

little important 65 22.8 22.8 36.1

Important 87 30.5 30.5 66.7

most important 95 33.3 33.3 100.0

Std. Deviation 1.154

Variance 1.333

INTERPRETATION

95 (majority) respondents said that it was important for them to check

whether the family likes the biscuit before they purchase a biscuit.

ATTRIBUTE 4:TASTE
 Cumulative
Frequency Percent Valid Percent Percent

Valid least important 1 .4 .4 .4

little important 12 4.2 4.2 4.6

Important 51 17.9 17.9 22.5

most important 221 77.5 77.5 100.0

Total 285 100.0 100.0

N Valid 285

Missing 0

Mean 4.73

Std. Deviation .552

Variance .305

INTERPRETATION

221respondents said that it was most important for them to analyse the taste
before they purchased the biscuits.
 ATTRIBUTE 5: ATTRACTIVE_PACKAGING

Cumulative
Frequency Percent Valid Percent Percent

Valid not at all important 32 11.2 11.2 11.2

least important 71 24.9 24.9 36.1

little important 102 35.8 35.8 71.9

Important 69 24.2 24.2 96.1

most important 11 3.9 3.9 100.0

Total 285 100.0 100.0

N Valid 285

Missing 0

Mean 2.85

Std. Deviation 1.037

Variance 1.075

INT
ERPRETATION

102(majority) respondents said that it is little importance for them to consider

attractive packaging before purchasing the biscuit.
 ATTRIBUTE 6: GOOD_DISPLAY

Cumulative
Frequency Percent Valid Percent Percent

Valid not at all important 41 14.4 14.4 14.4

least important 71 24.9 24.9 39.3

little important 106 37.2 37.2 76.5

Important 50 17.5 17.5 94.0

most important 17 6.0 6.0 100.0

Total 285 100.0 100.0

N Valid 285

Missing 0

Mean 2.76

Std. Deviation 1.088

Variance 1.184

INTE
RPRETATION

106 respondents said that it is of little importance to check display in

outlets before you consider purchasing the biscuits.
 ATTRIBUTE 7: AVAILABILITY

Cumulative
Frequency Percent Valid Percent Percent

Valid not at all important 11 3.9 3.9 3.9

least important 19 6.7 6.7 10.5

little important 64 22.5 22.5 33.0

Important 126 44.2 44.2 77.2

most important 65 22.8 22.8 100.0

Total 285 100.0 100.0

N Valid 285

Missing 0

Mean 3.75

Std. Deviation 1.005

Variance 1.010

INTERPRETATION

126 respondents said that it was availability of biscuits was an attribute

important for them before considering buying the biscuits.
 ATTRIBUTE 8: BRAND_AMBASSADOR

Cumulative
Frequency Percent Valid Percent Percent

Valid not at all important 142 49.8 49.8 49.8

least important 71 24.9 24.9 74.7

little important 51 17.9 17.9 92.6

Important 15 5.3 5.3 97.9

most important 6 2.1 2.1 100.0

Total 285 100.0 100.0

Brand_Ambassador

N Valid 285

Missing 0

Mean 1.85

Std. Deviation 1.029

Variance 1.058

INTERPRETATION

142 respondents said that the brand ambassador of the biscuit was not at all
an important factor for them to considering buying a biscuit.
 ATTRIBUTE 9: FREE OFFER

Cumulative
Frequency Percent Valid Percent Percent

Valid not at all important 43 15.1 15.1 15.1

least important 64 22.5 22.5 37.5

little important 70 24.6 24.6 62.1

important 73 25.6 25.6 87.7

most important 35 12.3 12.3 100.0

Total 285 100.0 100.0

N Valid 285

Missing 0

Mean 2.98

Std. Deviation 1.257

Variance 1.580

INTERPRETATION

73(majority) respondents said that free offer with the biscuit is an important
attribute that they consider before buying the biscuits.
 ATTRIBUTE 10:BRAND NAME

Cumulative
Frequency Percent Valid Percent Percent

Valid not at all important 18 6.3 6.3 6.3

least important 34 11.9 11.9 18.2

little important 73 25.6 25.6 43.9

important 114 40.0 40.0 83.9

most important 46 16.1 16.1 100.0

Total 285 100.0 100.0

N Valid 285

Missing 0

Mean 3.48

Std. Deviation 1.093

Variance 1.194

INTERPRETATION

114 respondents said that it brand name of the biscuit was an important
attribute for them before they considered to buy the biscuit. Brand name we
consider as the popularity of the biscuit in the market.
 ATTRIBUTE 11:TEXTURE

Cumulative
Frequency Percent Valid Percent Percent

Valid not at all important 6 2.1 2.1 2.1

least important 13 4.6 4.6 6.7

little important 51 17.9 17.9 24.6

important 122 42.8 42.8 67.4

most important 93 32.6 32.6 100.0

Total 285 100.0 100.0

N Valid 285

Missing 0

Mean 3.99

Std. Deviation .938

Variance .880

INT
ERPRETATION

122 respondents said that texture of the biscuit was an important factor for
them to consider before buying the biscuits.
 ATTRIBUTE 12: FLAVOUR

Cumulative
Frequency Percent Valid Percent Percent

Valid least important 3 1.1 1.1 1.1

little important 32 11.2 11.2 12.3

important 116 40.7 40.7 53.0

most important 134 47.0 47.0 100.0

Total 285 100.0 100.0

Flavour

N Valid 285

Missing 0

Mean 4.34

Std. Deviation .716

Variance .513

INTERPRETATION
134 respondents said that it flavour of the biscuit was the most important
attribute for them to consider before buying the biscuits.
 ATTRIBUTE 13:HEALTHY

Cumulative
Frequency Percent Valid Percent Percent

Valid not at all important 16 5.6 5.6 5.6

least important 30 10.5 10.5 16.1

little important 77 27.0 27.0 43.2

important 86 30.2 30.2 73.3

most important 76 26.7 26.7 100.0

Total 285 100.0 100.0

Healthy

N Valid 285

Missing 0

Mean 3.62

Std. Deviation 1.150

Variance 1.322

INT
ERPRETATION
86 respondents said that it was important for them to consider the health
quotient of the biscuit before they bought the biscuit.
 ATTRIBUTE 14: AFTER TASTE

Cumulative
Frequency Percent Valid Percent Percent

Valid not at all important 10 3.5 3.5 3.5

least important 18 6.3 6.3 9.8

little important 50 17.5 17.5 27.4

important 123 43.2 43.2 70.5

most important 84 29.5 29.5 100.0

Total 285 100.0 100.0

N Valid 285

Missing 0

Mean 3.89

Std. Deviation 1.015

Variance 1.030

INTERPRETATION

After taste of the biscuit was an important attribute for 123 respondents to
consider before purchasing the biscuits.
 FACTOR ANALYSIS
Communalities

Initial Extraction

Advertisement 1.000 .431

Price 1.000 .697

Family_likes 1.000 .558

Taste 1.000 .654

Attractive_Packaging 1.000 .573

Good_Display 1.000 .607

Availability 1.000 .499

Brand_Ambassador 1.000 .556

Free_Offer 1.000 .713

Brand_Name 1.000 .688

Texture 1.000 .462

Flavour 1.000 .628

Healthy 1.000 .481

After_Taste 1.000 .641

Extraction Method: Principal Component Analysis.

The proportion of variance in any one of the original variables which is

captured by extracted factor is known as communality.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .678

Bartlett's Test of Sphericity Approx. Chi-Square 609.849

Df 91

Sig. .000

From the data we have got the KMO value as 0.678>0.5. Thus factor
analysis is appropriate to use in this case. Thus we can further proceed
with the analysis.

Total Variance Explained

 Extraction Sums of Squared
Initial Eigenvalues Loadings Rotation Sums of Squared Loadings

% of Cumulative % of Cumulative % of Cumulative

Component Total Variance % Total Variance % Total Variance %

1 2.847 20.336 20.336 2.847 2.034E1 20.336 2.283 16.306 16.306

2 1.849 13.209 33.545 1.849 1.321E1 33.545 1.613 11.524 27.830

3 1.306 9.330 42.875 1.306 9.330 42.875 1.500 10.716 38.546

4 1.124 8.027 50.901 1.124 8.027 50.901 1.416 10.113 48.659

5 1.061 7.581 58.483 1.061 7.581 58.483 1.375 9.824 58.483

6 .972 6.946 65.428

7 .840 5.998 71.426

8 .771 5.504 76.931

9 .705 5.035 81.966

10 .627 4.477 86.443

11 .531 3.789 90.232

12 .523 3.734 93.966

13 .460 3.282 97.249

14 .385 2.751 1.000E2

Extraction Method: Principal Component Analysis.

From the 14 factors 5 factors have been extracted, factors with eigen
values more than 1 are assumed to be extracted.

The above table tells that after 7 factors extracted and retained, the
communality is 0.431for variable 1, 0.697 for variable 2 and so on(all
values are labelled communality in the above table). This means that
43.1 % of the variance information content of variable 1 is captured by
5 factors extracted together and so on.

The first step in interpreting the output is to look for the factors
extracted, their Eigen values and the cumulative percentage of
variance. We see from the cumulative % column that the 5 factors
extracted account for 58.483 % of the total variance (information
contained in the 14 original variables).
After observing the Scree Plot we can conclude that there are five factors
that have to be extracted from the original 14 variables.

Rotated Component Matrixa

 Component

1 2 3 4 5

Advertisement .653 -.033 -.009 -.001 -.063

Price .114 -.032 .818 .111 .026

Family_likes -.095 .054 .028 .737 .044

Taste -.070 .794 .000 .124 -.052

Attractive_Packaging .709 .053 .134 -.163 .149

Good_Display .687 .027 .224 -.072 .283

Availability .094 .137 .040 -.048 .684

Brand_Ambassador .631 -.149 .036 .365 -.019

Free_Offer .098 .084 .829 .088 -.015

Brand_Name .632 .252 .043 .385 -.275

Texture .060 .546 .031 .263 .301

Flavour .048 .742 .043 -.179 .202

Healthy .180 .051 .254 .593 .173

After_Taste -.033 .107 -.035 .261 .748

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 6 iterations.

Consumers were asked to rate the attributes that they considered while
purchasing a new mobile phone. Rating was on the scale of 1 to 5, where,
1-Not at all important, 2-Least Important, 3-Little Important, 4-
Important, 5-Most Important

The 14 attributes were reduced to 5 using factor analyses which are free
from redundancy.

After the statistical computations of factor analyses have been completed,

the next step is of interpreting these factors. This is achieved by
inspecting the pattern of high and low loading of each of the factors on
the variables.
INTERPRETATION
OF
FACTOR ANALYSIS
 FACTOR 1:PROMOTIONAL FEATURES

ATTRIBUTE MEAN FACTOR LOADING

ADVERTISEMENT 2.93 0.653
ATTRACTVE 2.85 0.709
PACKAGING
GOOD DISPLAY IN 2.76 0.687
OUTLETS
BRAND 1.85 0.631
AMBASSADOR
BRAND NAME 3.48 0.632

INTERPRETATION

Factor 1 comprises of mainly the promotional attributes by which the

company promote its products. In this case these promotional attributes are
the ones that influence the target population to purchase biscuits in this case.
All the attributes have high factor loading. The attribute attractive packaging
has the highest factor loading of 0.709 which indicates that this attribute
influences this factor the most. Also the mean rating of this attribute is good;
hence it is observed that the respondents interviewed look for a biscuit which
has an attractive packaging Further the factor loading of the attributes
advertisement, good display in outlets , brand ambassador and brand name are
comparable to that of advertisement and also their means are good. Hence
when it comes to promotional activities for the biscuits these factors play a
part in the buying of a packet of biscuit.
 FACTOR 2:INTRINSIC VALUES
ATTRIBUTE MEAN FACTOR LOADING
TASTE 4.73 0.794
TEXTURE 3.99 0.546
FLAVOUR 4.34 0.742

INTERPRETATION

Factor 2 comprises of mainly the intrinsic values of the biscuit that influences
the respondents to purchase a pack of biscuits. All the attributes have high
factor loading. The attribute taste has the highest factor loading of 0.794
which indicates that this attribute influences this factor the most. Also the
mean rating of this attribute is good; hence it is observed that the respondents
interviewed look for a biscuit which has taste. Further the factor loading of
the attributes texture and flavour are comparable to that of taste and also their
means are good. Hence when it comes to intrinsic values for the biscuits these
factors play a part in the buying of a packet of biscuit.

FACTOR 3:PRICING STRATEGIES

 ATTRIBUTE MEAN FACTOR LOADING
PRICE 3.37 0.818
FREE OFFER 2.98 0.829

INTERPRETATION

Factor 3 comprises of mainly the pricing strategies of the biscuit that

influences the respondents to purchase a pack of biscuits. All the attributes
have high factor loading. The attribute free offer has the highest factor
loading of 0.829 which indicates that this attribute influences this factor the
most. Also the mean rating of this attribute is good; hence it is observed that
the respondents interviewed look for a biscuit which has free offers. Further
the factor loading of the attribute price is comparable to that of free offers and
also the mean is good. Hence when it comes to pricing strategies for the
biscuits these factors play a part in the buying of a packet of biscuit.
 FACTOR 4:BENEFITS FOR FAMILY & SELF
ATTRIBUTE MEAN FACTOR LOADING
FAMILY LIKES IT 3.78 0.737
HEALTHY 3.62 0.594

INTERPRETATION

Factor 4 comprises of mainly the benefits received by family and individual

benefits when purchasing a pack of biscuits. All the attributes have high
factor loading. The attribute family likes it has the highest factor loading of
0.737 which indicates that this attribute influences this factor the most. Also
the mean rating of this attribute is good; hence it is observed that the
respondents interviewed look for a biscuit which the family likes. Further the
factor loading of the attribute healthy (health) are comparable to that of
‘family likes it’ and also its mean is good. Hence when it comes to benefits
received by the individual and family for the biscuits these factors play a part
in the buying of a packet of biscuit.

FACTOR 5:INTANGIBLE ATTRIBUTES

ATTRIBUTE MEAN FACTOR LOADING
AFTER TASTE 3.89 0.748
AVAILABILITY 3.75 0.684

INTERPRETATION

Factor 5 comprises of mainly the intangible attributes of the biscuit that

influences the respondents to purchase a pack of biscuits. All the attributes
have high factor loading. The attribute after taste has the highest factor
loading of 0.748 which indicates that this attribute influences this factor the
most. Also the mean rating of this attribute is good; hence it is observed that
the respondents interviewed look for a biscuit which has after taste. Further
the factor loading of the attributes availability is comparable to that of after
taste and its means is good. Hence when it comes to intangible attributes for
the biscuits these factors play a part in the buying of a packet of biscuit.

AWARENESS OF OREO TAG LINE

Awareness Frequen
 of Oreo cy
Don’t
Know 85
Seen But
don't
RememberConsumptio59
n of Oreo Frequency
Brand
Oreo Yes 141 236
No 49

AWARENESS OF OREO TAG LINE

160

140

120
No. of People

100

80

60

40

20

0
Don’t Know Seen But don't Remember Brand Oreo
Options

INTERPRETATION

141 respondents were aware of the tag line of Oreo ‘twist, lick, dunk.’ 85 said
that they don’t know which brand the tag line represented. 59 said that they
had seen the seen the advertisement with the tag line but do not remember
the brand the tag line represented .

CONSUMPTION OF OREO
 CONSUMPTION OF OREO
17%

Yes
No

83%

INTERPRETATION

236 (83%) respondents responded that they had consumed oreo. Only
49(17%) people said that they had not consumed oreo.

IF THE CONSUMER HAS NOT TRIED WILL HE

CONSUME

Option Frequency
Yes 13
 No 2
Can't Say 38
Consumed Before 232

WILL THE CONSUMER TRY IF NOT TRIED

250

200
No. Of People

150

100

50

0
Yes No Can't Say Consumed Before
Optiions

INTERPRETATION

When respondents were asked that if they had not tried oreo would they like
to try the biscuit , 232 gave the response that they had consumed oreo
before , 13 said yes they would like to try. 2 said that they would not like to
try the biscuit . 38 were in the ‘can’t say’ category.
 FACTORS INFLUENCING THE PURCHASE OF OREO
FOR THE FIRST TIME

Factors Frequency
Advertisement & Taste
Described 83
Packaging 16
Word of Mouth 75
Flavour 65

Insistence of Family/Friends 65

Convinced by sales
person/outlet owner 3
Gifted 26
Price 5
Never Consumed 47
Others 19

INFLUENCE TO BUY OREO FOR THE FIRST TIME

5%
Advertisement & Taste Described Packaging
12% 21% Word of Mouth Flavour
1%
Insistence of Family/Friends Convinced by sales person/outlet
6% owner
4%
1% Gifted Price
16% Never Consumed Others
19%

16%

INTERPRETATION

20% of the respondents said that advertisements and taste described in the
advertisements influenced them to buy oreo for the first time. 19% said that
word of mouth was a major influence on them for buying oreo. 16% each said
insistence of family members and flavour were factors to influence them to
buy oreo for the first time.

REPEAT PURCHASE OF OREO

 Option Frequency
Yes 191
No 45
Never Consumed 49

WILL YOU REPEAT PURCHASE OF OREO

Never Consumed

No
Options

Yes

0 50 100 150 200 250

No. of People

INTERPRETATION

191 respondents said that they would like to repeat purchase of oreo. 45 said
they don’t want to repeat purchase of the biscuit. 49 respondents said that
they had not consumed oreo at all.

FREQUENCY OF PURCHASE OF OREO

 Frequency Of Frequency
 Purchase
Once only 99
2-4 Times 81
5-15 Times 14
More Than 15
Times 13
Never Bought 78

FREQUENCY OF PURCHASE OF OREO

Never Bought

More Than 15 Times

No. of People
5-15 Times

2-4 Times

Once only

0 20 40 60 80 100 120

INTERPRETATION

91 respondents said they had bought oreo once only.81 said that they had
bought oreo 2-4 times. 78 respondents said that they had never bought oreo.
 DO YOU THINK OREO IS A HEALTHY BISCUIT

 Option Frequency
Yes 99
No 138
Never Consumed 48

Do you think Oreo is a healthy Biscuit?

Never Consumed

No. of People
No

Yes

0 20 40 60 80 100 120 140 160

INTERPRETATION

138(majority) respondents said that oreo was not a healthy biscuit. 99 said
that oreo was a healthy biscuit. 48 said that they had never consumed oreo.
 WILL OREO DO BETTER IF A CELEBRITY IS A BRAND
AMBASSADOR

Option Frequency
Yes 55
No 85
Can't
Say 145

DO YOU THINK OREO WILL DO BETTER WITH A CELEBRITY

AS BRAND AMBASSADOR ?
160

140

120

100
No. of People

80

60

40

20

0
Yes No Can't Say

INTERPRETATION

145 respoondents said that they cannot say with certainty if oreo would do well if the
brand ambassador of the biscuit was a celebrity. 85 said that oreo would not do better if the
brand ambassador was a celebrity.
WHICH CELEBRITY SHOULD BE BRAND AMBASSADOR

Brand
Ambassador  Frequency
Sportsperson 17
Actor 32
N.A. 229
others 7

WHICH CELEBRITY IS PERCEIVED AS BRAND AMBASSADOR?

250

200
No. Of People

150

100

50

0
Sportsperson Actor N.A.

INTERPRETATION

229 of the respondents were in the category N.A. as they must have answered
either No/ Can’t Say for the previous question (whether the brand will do
better if a celebrity endorses oreo). 17 respondents said that the brand oreo
will do better if a celebrity endorses it. 39 respondents said that brand will not
do better if a celebrity endorses the brand oreo.

HAVE PEOPLE CONNECTED WITH OREO THROUGH

SOCIAL MEDIA
  Optio
n Frequency
Yes 27
No 258

DISTRIBUTION OF PEOPLE WHO HAVE CONNECTED WITH

OREO THROUGH SOCIAL MEDIA
9%

Yes
No

91%

INTERPRETATION

258 respondents said that they had not connected with brand oreo through
social media. 27 respondents said they had connected with brand oreo
through social media.

DO YOU THINK BRAND OREO WILL DO BETTER IF COMPANY

ADVERTISES THROUGH SOCIAL MEDIA?
  Option Frequency
Yes 98
No 41
Can't
Say 146

DO YOU THINK OREO WILL DO BETTER IF ADVERTISES

THROUGH SOCIAL MEDIA ?
160

140 146

120

100 No.of People

98
80

60

40
41
20

0
Yes No Can't Say

INTERPRETATION

146 respondents said that they ‘Can’t Say’ if Oreo will do better if the
company advertises the brand through social media.98 said that the brand
oreo will definitely do better if the company advertises through social media.
41 were in category ‘no’ i.e. brand oreo will not do better if advertises
through social media.

IF PRICE INCREASES STEADILY WILL YOU KEEP

BUYING OREO?
 Optio Frequency
 n
Yes 52
No 99
Can't
Say 134

IF PRICE INCREASES STEADILY WILL YOU KEEP BUYING OREO

?
160

140

120

100 No.of People

80

60

40

20

0
Yes No Can't Say

INTERPRETATION

134 respondents said that they ‘can’t say’ if they will continue to purchase
oreo if the price steadily increases. 99 respondents said that they will not
continue to buy Oreo if price increase steadily.

RECOMMENDATION OF OREO TO OTHER PEOPLE

 Option Frequency
 Surely 47
Highly Likely 34
Moderately
Likely 72
Likely 55
Can't Say 47
Never 1
Never
Consumed 29

RECOMMENDATION OF OREO TO OTHER PEOPLE?

80

70

60

50

40

30

20

10

0
Surely Highly LikelyModerately Likely Likely Can't Say Never Never Consumed

INTERPRETATION

72 respondents said moderately likely to recommend Oreo biscuits to others.

55 respondents said that they are likely to recommend Oreo biscuits to others.
47 respondents said that they are surely going to recommend Oreo biscuits to
others.

FACTORS THAT NEED TO BE ENHANCED IN OREO TO MAKE IT

MORE LIKEABLE
 Influence Factor  Frequency

Advertiisement &
Taste Described 28
Packaging 9
Flavour 79
Price Reductcion 44
Never Consumed 47
Like Oreo 103
Others 14

FATORS THAT NEED TO BE ENHANCED IN OREO TO MAKE IT

MORE LIKEABLE
4% 9%
3%
Advertiisement & Taste Described
Packaging
Flavour
32% Price Reductcion
Never Consumed
24%
Like Oreo
Others

15% 14%

INTERPRETATION

A majority of 32% of respondents said that they “like Oreo”. 24% said that
they would prefer buying oreo if flavour is improved or changed.

WHICH COMPANY DOES OREO BELONG TO

 Compan
y Frequency
Parle 4
Britannia 8
HUL 2
 Cremica 2
Priyagold 0
Cadbury 167
Don't
Know 101
Others 1

Which Company Does Oreo Belong to?

180

160

140

120

100 No.of People

80

60

40

20

0
Parle Britannia HUL Cremica Priyagold Cadbury Don't Know Others

INTERPRETATION

167 respondents were aware that Oreo belonged to the company Cadbury.
101 respondents said that they were not aware of the company to which Oreo
belonged to.
CHI-SQUARE
TEST
ASSUMPTIONS FOR CHI-SQUARE TEST
1.The chi-square test for independence can be used for any level
variable , including interval level variable grouped in frequency
distribution. It is most useful for nominal variable for which we
do not have another option.

2. No cell has expected frequency less than 5

3.If these assumptions are violated , the chi-square are violated ,

the chi-square distribution will give misleading probabilities .
Ho: Frequency of buying of biscuits is independent on age
groups.
H1: Frequency of buying of biscuits is dependent on age groups.
We tested the null hypothesis with the chi-square test with the help of SPSS
using cross-tabulation.

Age Group * Frequency of biscuits Crosstabulation

Frequency of biscuits Total

Every 2- Once Once a Occasio

Daily 3 days a week Month nally 9

Age Group 15-29 years Count 3 33 58 25 15 0 134

Expected 3.8 26.3 57.8 29.2 16.5 .5 134.0

Count

30-44 years Count 3 17 42 20 14 1 97

Expected 2.7 19.1 41.9 21.1 11.9 .3 97.0

Count

45-59 years Count 2 6 23 17 6 0 54

Expected 1.5 10.6 23.3 11.7 6.6 .2 54.0

Count

Total Count 8 56 123 62 35 1 285

Expected 8.0 56.0 1.2E2 62.0 35.0 1.0 285.0

Count
 Chi-Square Tests

Asymp. Sig. (2-

Value df sided)

Pearson Chi-Square 9.748a 10 .463

Likelihood Ratio 9.949 10 .445

Linear-by-Linear Association 2.558 1 .110

N of Valid Cases 285

a. 6 cells (33.3%) have expected count less than 5. The minimum

expected count is .19.

The probability of chi-square test is 9.748. p-value from chi-square

testing is greater than alpha level of significance(5%) 0.463>0.05 . Thus
we retain the null hypothesis. We retain the null hypothesis that the
frequency of buying is independent of age groups. The null hypothesis is
not rejected from our study.

BUT The above conclusion cannot be made with certainty as the

assumptions are being violated by the expected frequencies. Not
all cells have expected frequency greater than 5 , which is a
requirement for the test.

Symmetric Measures

Value Approx. Sig.

Nominal by Nominal Phi .185 .463

Cramer's V .131 .463

Contingency Coefficient .182 .463

N of Valid Cases 285

5.1 LIMITATIONS OF THE STUDY
The limitations of our study are as follows:

1. As in any market research project, we base our assumptions on

the sample taken. We assume that the sample will be such that it
is representative of the entire target population. The sample may
not be representative of the entire population.

2. We assume that the competition for Oreo, is only biscuits. If we

were to take an overview we will realize that the biscuits will
need to be considered under the umbrella term of snacks. Every
snack will be competition to the biscuits.

3. We have had surveys filled up only by the people who eat

biscuits. We have to realise that even the people who do not
consume biscuits can have evaluation of the brand and they may
be able to give an opinion on the brand building strategies.

4. Due to limitations of time and cost, we have taken a small

sample, under consideration. The larger the sample the better
representation the sample gives of the target population.

5. The study only focuses on the analysis of current market of the

product Oreo and not analysing the expected market.
5.2 SCOPE OF FURTHER RESEARCH
1. The study was conducted on brand awareness only in parts of Delhi.
The study can be extended to other cities, and subsequently the results
can affect the brand strategy of the product.

2. The study was done as a comparison with only biscuits. An extension

can be made by comparing the biscuit oreo with other packaged/non-
packaged snack items.

3. The study can be done further for product analysis of in Rural areas,
where the product has not been launched.
 5.3
SWOT
ANALYSIS
STRENGTHS WEAKNESSES
1.362 billion Oreos have been sold 1. They do not manufacture products
in more than 100 countries across that serve health conscious society.
the globe. They are the world’s top- 2. Poor advertisements and marketing
selling cookie of the 21st Century. promotions, as not many people were
2. Oreo has been produced in many really aware of relationship bus etc.
varieties since they were first Also not too many people would like to
introduced in the international connect to the product through the
market. social media.
3. Everyday more than 20.5 million 3. Nutritional problems, high fat content
oreo cookies are consumed and calories.
internationally. 4. Not all varieties and flavours are
4. First purchasers would look at available everywhere.
packaging, the blue packaging 5. Limited ability to raise price due to
stands out the most. competitive low prices.
5. A well known brand. 6. In India the product, although low
6. Affordable products. priced is considered as a luxury product
7.More value added through because it is brand image. This is one of
packaging and distribution the possible reason that it has not been
8. Establishes customer able to penetrate into the market.
relationships.
9. Stock of technology includes
patents, trademarks etc.
10 .High quality reputation and
brand reputation.
OPPORTUNITIES
1.Kraft holds the number 1 share
position in 21 of the 25 country
categories internationally. This
advantage places Kraft in the
position to obtain a significant
share of a category’s growth and
profit, generating additional
resources to reinvest in marketing
and innovation.
2. Invest in advertising/ marketing
campaigns.
3. Introduce health and nutritional
production in India.
4. Add more flavour fillings.
5. Kirana shops are the most
preferred place of purchase of
purchase of biscuits. This can
possibly be attributed to the ease of
access for purchase of a regularly
needed item such as biscuits. On
the other hand we can also notice
that all the options have close
percentages of respondents
preferring every outlet of purchase.
In such a situation it is advisable to
make sure that all types of outlets
have enough stocks so that the
customer is not lost to competition.
THREATS
1. Large market of biscuits exists in
India which results with many
competitors like Britannia, Parle etc.
2. Low involvement product and
consumers can easily switch.
3. Growth of private label products.
4.No immediate advertising/ marketing
campaigns
5. Rising commodity, packaging and
other input costs such as sugar, cocoa
etc.
6. Changing preferences and demand of
consumers.
7. Lifestyle changes towards health and
nutrition.
8. ITC is a company that has been
greatly involved in corporate social
responsibility for eg. E-choupal system
was launched with help of ITC. India
being a major agricultural society , there
is a high chance of people who relate to
ITC brand ‘sunfeast’ of biscuits .
Sunfeast biscuits by ITC is a major
threat to oreo as sunfeast being a
relatively newer biscuit brand has been
able to penetrate into the market giving
tough competition to the older players
as well.
5.4 SUMMARY
Market Analysis: The oreo biscuits have focussed on children, youth and
women. They should make the biscuits flavour and shape more interesting so
that it generates new interest amongst children, who would in turn influence
their parents to buy the cookies.

Geographic Factor: This product should be available in all metros as well as

tier 1 and tier 2 cities because income level of middle class is increasing.

Demographic Factor: The youth population is high in the metro and tier 1
cities and women are going regularly to supermarkets in cities. Also India is
largely an agricultural country and still a major part of the population is in the
agricultural rural areas, thus the company should concentrate on the
agricultural areas for marketing the biscuits. The company can possibly sell
the biscuits as

Behavioural Factor: As India is a developing country, people are now

becoming aware of new brands which are attracting them to explore and
investigate things. Women are obsessed about shopping and show favourable
attitude and interest in different brands. They are considered as high brand
loyalty users.

Marketing Need: As oreo biscuit and biscuits are food, so the most
important need the oreo biscuits satisfy is hunger. But if we further narrow
down needs, oreo can be satisfying more than just the hunger.

Oreo satisfying the nurturing need , a mother having difficulties in feeding

her 4 to 6 year old child with some nutritional food can consider oreo to feed
her child with a sip of milk.
Oreo satisfies imitation need example kids watching oreo advertisement on
television while other kids, enjoying, twisting, licking, dunking the cookie
into a glass of milk. This forces the kids to want the cookie.

Oreo also satisfies the fun need and in this case not only kids want to have
fun and enjoy oreo. Even adults like to have oreo.

Marketing Trend:

Female population have started working, which increases the purchasing

power.

Driven by changing lifestyles and population growth the impact on the food
market has been positive. The market therefore witnessed a rapid growth over
the review period. The consumers in the Indian market are seen as active
switches within medium brand loyalty level.

Competition: Food industry is a kingdom and is really wide and the

competitions exist at a high range. Biscuits, cookies or sandwiches have a
large market which makes it a tensed market for oreo.
5.5 SUGGESTIONS
Product:

1. Develop new sandwiches which contain less fat, less salt and are
healthier.
2. Packaging must be more attractive.

Price:

1. Lower down their current prices because already the competitors

have a low price.
2. Maintain a fixed price for all specific overall the Indian market.

Place:

1. Improve market existence example in malls, supermarkets etc.

2. Ensure availability in Kirana shops as well as tier 1 and tier 2 cities
and expand its rural area markets.

Promotion:

1. Promotion through television commercials, flyers, pamphlets,

newspapers and not too much social media such as facebook etc.
2. Improve their campaign by bill boards.