m Hindustan Food is a leading manufacturer of food

product
.
m The company manufactures

m fruit cakes, cookies, biscuits, confectionaries and

a variety of other food products including baby
foods.
 The domestic confectionary market was loosely
divided into seven categories-
m Hard ± boiled candies
m Toffees
m Éclairs

m Chewing gum
m Bubble gum
m Mints
m Lozenges
m Boiled candies occupied the highest share
m Hindustan foods did not have the presence in the
segment
m It use to manufacture and market toffees as ³Tasty
Bite ³ toffees
m In the chewing gum and the bubble gum segment
it had a significant presence with its brand name-
³Freshmint´
m Hindustan Food planned to enter the hard boiled
fruit candy segment under its Tasty Bite brand

Objective
To gain significant presence and market share in a
segment that was rapidly growing.
m For the same purpose the company wanted to
test three new flavors for the proposed candy-
1.Strawberry

2. Apricot

3. Pineapple
m Impact measurement
Three different retail prices-

‡ 50paise,
‡ 75paise
‡ 100paise

for three flavors

m company selected nine geographically separated
stores , as a test stores for the
‡ new flavors and
‡ different price points.
m three flavors was to be to be tested at each price
m total of nine different flavors ± price combinations
had to be tested.
m Hindustan food arranged for the delivery of the
three new flavors across the stores

m At the end of the four weeks they collected the

unsold candy cases.

m This helped them to determine the number of

cases sold for each flavor.
m To know if the difference in sales was due to
difference in flavors

m The effect different prices had on sales.

ð
  

 ð


50 paise 22 54 35

75 paise 24 45 32

100 paise 15 35 31
m It is a statistic (like s2) computed from sample
data.
m It is not a measure of spread of data, but a
measure of the spread of frequencies computed
from count data.
m It is used to
ΠTest hypotheses regarding more than 2 population
proportions
ΠTest hypotheses regarding population variances
ΠTest independence of variables / factors
ΠTest of goodness of fit

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12
m An (mxn) table of m rows and n columns which
contains frequencies of items corresponding to a
particular row and column.
m Can be used to display observed frequencies or
expected frequencies (or both).
m Used as a ³working table´ in testing hypotheses
regarding equality of several expected
frequencies.
ΠIndirectly, in testing independence of 2 factors and
goodness of fit of distributions to data.

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!"# $ % % % %&
        
!"# $ % &% &% %

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m Basic issue is whether 2 variables / factors are
related (dependent) or unrelated (independent)
Œ Dxample 1 ±
ã Survey of people in 4 metros on whether they smoke
ã Issue is: ³Whether a person smokes or not depends on
which city he is in´.
Œ Dxample 2 ±
ã Survey of engineering graduates in 3 metros regarding their
job-offers
ã Issue is: ³Whether offer depends on which city job is in´.

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