Market research on Horlicks Foodles

Submitted By: Rezaul Amin Choudhury Roll 32 MBA 3rd Semester

Introduction:
GlaxoSmithKline Consumer Healthcare (GSKCH) with its flagship brand name Horlicks has forayed into the noodle market with a view to stand out against other noodle makers by offering the consumer a healthy noodle called as Horlicks Foodles. The brand name, Foodles with its punch line noodles without a no seems to be an attempt to distance themselves from the regular noodles. Although projected as a healthy noodles, but it is not a lone maker of such product; potential competition is faced from noodle makers like Maggi who have their own product line of healthy noodles. In this report, a study has been made on consumer attributes along with an attempt to see consumer healthy food product as one such attribute in order to the market. A comparative analysis has been made preferences over various product responses towards noodles as a determine Foodles future stand in to see the extent of competition

faced by Foodles with other market players. Also a study on the more of promotion of Foodles is also conducted. Product profile in brief: The products including a 4-grain and regular variant with nine different vitamins are aimed at cueing health. This includes rice, ragi, wheat and corn. Each variant comes with different flavor. In total fifteen variants are available in the market. Market competitors: The market has some aggressive competitors, namely Nestl, Hindustan Unilever. They operate under the brand names of Maggi, Knorr Soupy and Noodles, respectively. Maggi is the market leader with a share of over 70 per cent. Some other players in this market include CG Foods (Wai Wai ) and Nissin Foods (Top Ramen), Mayos and Yummy noodles.

OBJECTIVE OF STUDY: To study customer behaviour while purchasing noodles. To understand the perception of customers towards various brands of noodles available in the market

METHODOLOGY: DATA SOURCE: PRIMARY RESEARCH APPROACH: EXPLORATORY

SAMPLING PLAN: The sample was selected on the basis of simple random sampling. The sample size is 30.

SAMPLING UNIT:

The sampling unit on which the study was done are residents of Guwahati.

DATA COLECTION TECHNIQUE: The technique used for collecting data is the use of interview schedules with relevant questions. Data are collected by filling up the schedules by me on the basis of replies given by respondents. In the process the respondents were personally met and questions were asked pertaining to enquiry and collect the desired information.

SCOPE AND LIMITATIONS OF THE STUDY: The study is confined to Guwahati The study is done on the sample interviewed on a particular day

SIGNIFICANCE: The significance of the study lies in the fact that it helps in understanding the considerations that a customer make before actually purchasing noodles. The study also helps in getting a perception of the customers about the various products.

Data obtained by Likert scaling: Customers were asked to rate each factor on a scale of five. The response obtained was entered in Microsoft Excel Sheet and the average scores for each factor were taken.

Howard And Sheth Model

(Fig: representing Howard and Sheth model)

Analysis: Important input stimulus considered by consumers while buying ice cream:
Descriptive Statistics of the attributes considered while buying noodles N Minimum Maximum Mean Statistic TASTE AVAILBILITY BRAND DIFFERENT FLAVOUR OFFERS FOOD VALUE VARIOUS QUANTITY AVAILABLE FAMLY PRFERENCE REFERENCE FROM FRIENDS PACKGING Valid N (listwise) 30 30 30 30 30 30 30 30 30 30 30 Statistic 4.00 3.00 4.00 3.00 1.00 3.00 3.00 3.00 2.00 2.00 Statistic 5.00 4.00 5.00 5.00 3.00 4.00 4.00 4.00 3.00 4.00 Statistic 4.8000 3.8333 4.4000 3.8333 2.4000 3.4333 3.7667 3.6333 2.6667 2.6667 Std. Error 7.428E-02 6.920E-02 9.097E-02 .1081 .1406 9.202E-02 7.854E-02 8.949E-02 8.754E-02 .1207 Std. Deviation Statistic .4068 .3790 .4983 .5921 .7701 .5040 .4302 .4901 .4795 .6609

INTERPRETATION:

It is clear from the bar diagram that people mostly considers taste, brand name, availability of different flavours, availability in different quantities and family preference as potent attributes and points while buying noodles. Cross tabulation of the important factors considered as per age group:
TASTE * AGE Crosstabulation 4.00 Count Expected Count % within TASTE % within AGE % of Total Count Expected Count % within TASTE % within AGE % of Total AGE 1.00 1 .4 16.7% 50.0% 3.3% 1 1.6 4.2% 50.0% 3.3% Total 2.00 2 1.8 33.3% 22.2% 6.7% 7 7.2 29.2% 77.8% 23.3% 3.00 3 3.2 50.0% 18.8% 10.0% 13 12.8 54.2% 81.3% 43.3% 4.00 0 .6 .0% .0% .0% 3 2.4 12.5% 100.0% 10.0% 6 6.0 100.0% 20.0% 20.0% 24 24.0 100.0% 80.0% 80.0%

TASTE 5.00

1 4

1 2

1 0

AE G
c ild n h re te n g rs eae

Count

2 0 4 0 .0 5 0 .0

au d lt v t re s ae n

T SE AT

BRAND * AGE Crosstabulation AGE 4.00 Count Expected Count % within BRAND % within AGE % of Total Count Expected Count % within BRAND % within AGE % of Total 1.00 1 1.2 5.6% 50.0% 3.3% 1 .8 8.3% 50.0% 3.3% 2.00 7 5.4 38.9% 77.8% 23.3% 2 3.6 16.7% 22.2% 6.7% 3.00 7 9.6 38.9% 43.8% 23.3% 9 6.4 75.0% 56.3% 30.0% 4.00 3 1.8 16.7% 100.0% 10.0% 0 1.2 .0% .0% .0% Total 18 18.0 100.0% 60.0% 60.0% 12 12.0 100.0% 40.0% 40.0%

5.00 BRAND

1 0

A E G
ch re ild n

te n g rs eae au d lt

Count

0 4 0 .0 5 0 .0

va ra s te n

B AD RN

It is clear from the cross tabulations that most of the adults, who make purchases for their family considers brand name and taste as the important points which they consider while making purchases of noodles.

brand attributes cosidered for buying

D riv d S u s C n u tio e e tim lu o fig ra n E clid a d n m d l u e n ista ce o e

1 .5 1 .0 .5 0 .0 -.5 -1 .0 -1 .5 -2 .0 -1 .5 -1 .0 -.5 0 .0 .5 1 .0 1 .5 2 .0 wa i iwa to ra n p m ko ol n rn d yu m my

mg i ag

m yo a s

fo d s o le

brand association

INTERPRETATION: On constructing an Eclidean distance model in terms of brand association and attributes considered while purchasing, it was found that Horlicks foodles is way below consideration as compared to other brands of noodles.

Standardized Canonical Discriminant Function Coefficients SL NO Function 1 2 3 1 2 3 4 5 6 7 8 9 10 TASTE PRICE AVLIBILITY FLAVOURS OFFERS FOODVALU PACKAGIN DIFFERENT QUANTITY AVAILABLE FAMILY PREFEREN CE REFFERNC E -.146 .733 -.366 -.004 .082 .007 -.317 .786 .051 .172 -.027 -.002 -.156 .761 .003 .431 -.290 .003 .028 .036 .907 .077 -.025 -.321 .079 .392 -.024 .238 .042 -.317

4 .189 -.497 -.118 -.093 .196 .200 -.330 .373 -.117 .580

5 .193 -.163 -.632 .339 .680 -.266 .138 .055 .074 -.302

6 .185 -.008 .454 .304 .110 -.537 -.544 .033 .357 -.142

From the scatter plot diagram above, it is seen that foodles stands good in terms of taste,and food value. However it lacks in preferences made by family members, and availability in different quantities.

CONLUSION: From the analysis it is seen that brand relation wise, horlicks foodles is recognised in the market. It also competing well in terms of taste, and food value .however it lags behind in providing much flavours, family preferences, and offering different quantities of the product in the market. The success of foodles will be significantly be dependent up on the mentioned factors.

QUESTIONAIRRE: (TICK THE APPROPRIATE OPTION) 1) Name of the respondent 2) Gender:

3) Age:

Male Children teenager

Female. adult Yes No veteran

4) Do you consume noodles?

5)

How important are the following attributes to you when you purchase noodles? Attributes Taste Availability Brand name Different of flavors Promotions and offers Food value Availability in various quantity Family preference Kins and friends Reference Attractive packaging Very Strongly strongly Neutral poorly Very poorly

6)

Do you think that it is important that noodles should have higher food value? Yes No

7)

Are you aware of the newly launched noodles called Foodles? Yes 8) No

How do you perceive the following companies performance in the following attributes: (Rate between 1 and 5) 1=least importance and 5=high importance

Attribute s Taste Availability Brand name Different of flavors Promotions and offers Food value Availability in various quantity Family preference Kins and Reference Attractive packagin g
9)

Magg Top Foodle i Rayme s n

Knor souppy noodles

Mayo s

Waiwai

Yummy noodles

If your favorite brand is not available will you buy some other related brand? Yes No

10)

If yes, then will you buy foodles? Yes No

11)

How will you rate the following brands in rows against those in column? (rate from 1 to 7, 1 for lowest and 7 for highest)

Maggi

Top Rayme n

Foodles Knor soupp y noodl es

Mayos

Waiwai

Yummy noodles

Maggi Top Rayme n Foodles Knor soupp y noodl es Mayos Wai-wai Yummy noodles