ACCEPTANCE OF HEINZ TOMATO KETCHUP IN INDIA

PRESENTED BY:

VEENA MOHANDAS

(Test Engineer – BNP PARIBAS)

STRUCTURE OF PRESENTATION

1. Company Background2. Establishment in India3. Substitutes of Ketchup4. Features of Ketchup5. Research Objective6. SWOT Analysis7. Methods of Research8. Sampling Method9. Data Analysis &

Processing10. Hypothesis Testing11. Key Findings &

Recommendations

KETCHUP IN INDIATill a few years back the fast food market in INDIA was not a very prominent industry mostly because there were less of fast food joints and disposable incomesBut with the growth of both these elements the fast food market in India received a boostFast food and ketchup are directly proportional to one anotherThe sweet and tangy taste provided by ketchup adds to the entire experience of a delicious or finger licking meal. Thus the rise in the demand for fast food has resulted in the rise in the demand for ketchup in INDIAAccording to a recent survey, it is estimated that Indians spend about Rs.4,449 crore a year in fast-food centres

INTRODUCTION The H.J. Heinz Company, headquartered in Pittsburgh, Pennsylvania, is the most global of

all U.S.-based food companies. Famous for their iconic brands on five continents, Heinz provides delicious, nutritious and convenient foods for families in 200 countries around the world.

Heinz came to India in 1994 by taking over the Family Products Division of Glaxo with powerful brands such as Complan, Glucon-D, Nycil and Sampriti

Heinz India is fully integrated into the global Heinz operations employing high standards in quality at its state-of-the-art manufacturing facility at Aligarh in the State of Uttar Pradesh. This manufacturing facility is HACCP certified and follows GFMP (Good Food Manufacturing Practices) to deliver nutritious and safe food products to consumers

Heinz products synergize the three pillars of the Heinz tradition namely TRUST, TASTE & NUTRITION

Heinz is preferred in institutional clients like Air India, Jet airways, The Oberoi, Café Coffee Day, Dominoz Pizza, Pizza Hut, Barista etc

ESTABLISHMENT IN INDIA

FEATURES & BENEFITS OF HEINZ TOMATO KETCHUP

SUBSTITUTES OF KETCHUP

The ketchup market in India is estimated to be around Rs.220 crore, largely dominated by Nestle’s Maggi that owns 37% of the market & the Kissan that owns 29%, and Heinz holds a total market share of around 10%

According to industry experts there is still abundant scope for improvement as ketchup penetration is low in the rural areas

MARKET PLAYERS

RESEARCH OBJECTIVE

This research aims to study the various aspects related to Acceptance of Heinz Tomato Ketchup.

ACCEPTANCE OF HEINZ TOMATO KETCHUP IN INDIA

The following are the findings that has been made as on the basis of survey done for “Acceptance of Heinz Tomato Ketchup in India”

  Heinz Tomato Ketchup is not a

successful brand as the other tomato ketchups like Kissan and Heinz

Limited awareness of the product

Lack of effective advertisement

USP: It is Thicker

Strengths: Global Brand Name Advertising on global level Good Distribution in big cities

Weakness: Storage Issues Expensive than other brands in India

Opportunities: More Advertising required to reach

bigger audiences

Threats: Threat from existing brands like Kissan,

Maggi etc

SWOT ANALYSIS

We have established some hypothesis and some inferences on the basis of the primary data collected. 

The steps involved in the research are:1. SURVEY METHODS:

Customer survey for primary data:

We asked the customers to rank the various attributes on a scale of very important, important and not very important. To find-out the brand perception of various brands, paired comparison between them is used.

2. QUESTIONNAIRE DESIGN:

 

In designing the questionnaire we paid particular attention to the content and wording of the questions. There were some questions which could be easily framed. The questionnaire was meticulously prepared by identifying the various variables i.e. product, price, place, promotion. The same scale of yes/no and very important, moderately important and least important was used to make the respondents comfortable.

STEPS INVOLVED IN THE RESEARCH

3.PILOT INTERVIEW:

  The questionnaire development consisted of two stages. After the literature review and identification of various influential factors, the pretest questionnaires were conducted in order to observe samples understanding the statement and questions in the questionnaire.

4. SAMPLING DESIGN:

 

The sampling frame is defined in terms of who the respondents are, can answer the questions that need to be addressed. First we defined our target population as the people who are involved in the purchase of house hold items. Then we used random sampling in conducting the survey.

5. LOCATION FOR THE SURVEY:

The data collection places were Mira Road (NLDIMSR-MFM Sem II), Andheri (Angel Broking Ltd-Staff), Ghatkopar (WorleyParsons-Staff), Vasai. The data collection method was questionnaire, personal interviews & telephonic interview.

STEPS INVOLVED IN THE RESEARCH (Cont..)

5. SAMPLE SIZE:

While planning the survey we estimated the sample size of 75 respondents. We have surveyed 60 people who lie within our target population. The survey consists of 49% of females and 51% male of the total sample size. Most of the respondents are from the middle and upper middle class.

6. DATA COLLECTION AND ANALYSIS:

 

The data collected via survey was entered into the excel sheet. The results were tabulated and analyzed. According to the analysis relevant inferences has been made related to each question. Based on the question no. 17 of the questionnaire, a hypothesis was analyzed. The hypothesis is that the color and the thickness of tomato ketchup are equally important to the respondents of the survey conducted. Using sign test this null hypothesis has been rejected and the alternate hypothesis has been accepted.

STEPS INVOLVED IN THE RESEARCH (Cont..)

Sampling Method:

  The sampling method used in stratified sampling (Probability Sampling Method. As Each group has small variations within itself but there is a significant variation between strata’s Groups

 

Sample size:

As 60 people consume Tomato Ketchup in said area subject to selected class. To determine sample size we have conducted pilot study of 10 respondents. We found that out of 10 Respondents, 8 respondents do not prefer Heinz brand.

 

Therefore, p (Estimated proportion of success) = 0.2

Q (Estimated proportion of failure) = 0.8

 

The formula for estimating sample size in case of proportion is,

N = (Z/E)^2 pq

Z (95% confidence level ion standard error units) = 1.96

 

E (Maximum allowance for error between

True proportion and sample proportion) = 0.07

 

N = (1.96/0.07)^2*0.2*0.8= 125.44

SAMPLE DESIGN

DATA ANALYSIS AND PROCESSING1. SOURCE OF INFORMATION ABOUT HEINZ TOMATO KETCHUP

INFERENCE: This graph reveals that T.V. Advertisements are the major source of information regarding Heinz Tomato Ketchup and so we can also infer that they have been successful in their promotion strategies involving electronic media.

2. REMEMBER ANY TV AD

INFERENCE: This Pie Chart facilitates us in realizing that almost 50% of the people are aware of the brand Heinz as they remember TV ads so it can be inferred that Heinz’s promotional team has been satisfactorily successful in positioning its Tomato Ketchup in the mind of the people.

Response No of Respondents

Yes 32

No 28

3. CELEBRITY ENDORSEMENT PROMOTE BUYING

INFERENCE: This Pie Chart infers that Celebrity Endorsements does not influence the buying decision of majority consumers. It also infers that reference group does not make any impact on consumer mind when we talk about Heinz Tomato Ketchup.

Response No of Respondents

Yes 5

No 55

4. HEINZ TOMATO KETCHUP IS PURCHASED FROM

INFERENCE: This graph highlights the impact of organized retail on unorganized sector, unorganized still being the dominant, as around 27% of consumer make purchases of Tomato Ketchup from retail store and it has been observed 45% of people have never purchased Heinz Tomato Ketchup .

Response No of Respondents

Near By Store 16

Retail Store 16

Whole Seller 1

NA 27

5. SIZE OF TOMATO KETCHUP USUALLY PURCHASED

INFERENCE: This graph figures out that the 500 gm sized bottle of Heinz Tomato Ketchup is largely demanded even in the presence of smaller sized bottles and even the new Squeezy Pack.

Response No of Respondents

200 gm Glass Bottle 18

500 gm Glass Bottle 23

1 Kg Bottle 11

910 gm Squeezy Pack 8

6. FREQUENCY OF BUYING TOMATO KETCHUP

INFERENCE: This Pie Chart depicts that the frequency of buying occasionally and never of Heinz Tomato Ketchup is maximum.

Response No of Respondents

Every Week 3

Every Fortnight 2

Every Month 11

Occasionally 21

Never 23

7. MOST LIKED FLAVOUR

INFERENCE:

This graph shows that the original flavour of Tomato Ketchup is still the leader in terms of popularity and Tomato chili sauce is slowly catching up with it.

Response No of Respondents

Tomato Ketchup 38

Tomato Chilli Sauce 20

Tomato Chutney 0

Coriander Mint Chutney Sauce 2

8. IMPORTANCE OF THE ATTRIBUTES

INFERENCE: This graph depicts our analysis of the importance of the various product attributes like taste, color and thickness in the eye of people. We can very well observe in the graph that Taste, undoubtedly, is the most important attribute that people prefer more over any other while selecting a brand. Moderate importance is given color attribute and thickness also derives its importance somewhere between moderate to very important.

Attributes Very Important Moderately Important Least Important

Taste 55 3 2

Color 13 40 7

Thickness 30 23 7

Objective:

  To find what is more important between color and thickness of tomato ketchup among the respondents.

Method:

HYPOTHESIS TESTING

Particulars Level Of Importance

Taste 10 10 20 40

Color 20 10 10 40

Thickness 30 10 30 70

Total 60 30 60 150

Above data is a tabular form of level of importance given to Taste, color & Thickness.

H0: Taste, color and thickness are equally important.

H1: Taste color and thickness are not equally important.

Sign denoted above statements

H0: P1=P2=P3

H1: P1 = P2= P3

 

All these are dependent variants

Q. Please find at 5% significance level that the mean levels of importance are same.

P1 = 40

q1= 110

P2= 40

Q2= 110

P3= 70

Q3= 80

P = n1p1+n2p2+n3p3

n1+n2+n3

=150*40+150*40+150*70

150

=150

=150*110+150*110+150*80

150

=300

Z= (P1-P2-P3) –(P1-P2-P3)

1. SAMPLING ERROR:

The sample of our survey is confined to the respondents from the middle class and the upper middle class.

The sample size of 130 is not the true representative of our sampling frame and result in skewed responses.

The locations under taken for the survey is also a constrain because the result of the survey is limited to some regions and cannot be used for further analysis and implementation.

2. RESPONSE ERRORS:

These errors arise when the respondents give inaccurate or incomplete answers. A major problem is faced in the survey involved the comparative ratings of various attributes for tomato ketchup. Many of the respondents were not very willing to mark their income group.

LIMITATIONS

3. CLOSED ENDED QUESTIONS:

All the questions in the questionnaire were closed-ended to avoid any confusion from the respondents end. But a drawback of this approach is that there was some biasness in capturing the responses of the respondents. The reasons for such inaccuracy could be because of unfamiliarity, boredom, faulty recall and the question format.

4. RECORDING ERROR:

This type of error arise dues to errors in hearing, interpreting, and recording the answers given by the respondents. For example, a respondent indicates a moderate response for the attributes of the tomato ketchup, but the interviewer misinterprets that to a positive response.

5. DATA ANALYSIS ERROR:

These errors occur while raw data from questionnaire are transformed into research findings. For example, if the outliers are not filtered from the data during the statistical procedure, it may result in incorrect interpretation and findings.

LIMITATIONS (Cont..)

1. PRODUCT

Ready meals are one of the fastest growing areas of the food market in developed, as well as developing countries such as India The above results and discussion also show that there is a tremendous growth opportunity for ready meal manufacturers.

The ketchup is thicker as compared to other products available in the market. According to our inference thickness is one important criteria which affects buying behavior. Hence company should maintain its thickness factor as it is, which is definitely a plus point for the company in the long run.

It was also found that taste, thickness and color contribute to the deciding factor on purchase of ketchup.

  Company should work on taste also. According to the data collected , people

prefer the taste of Kissan.

They should immensely work on the fact that the product should be easily available in local grocery shops, hence it should go for a complete makeover of its distribution and marketing channels.

KEY FINDINGS & RECOMMENDATIONS

2. PLACE It was found out that almost all consumers use ketchup as it is a ready-to-eat product and

easily available at even a nearby store.

Most of the people buy Heinz Ketchup from local kirana stores. But organized sector is booming and according to our survey 38% people buy Heinz Ketchup from Retail Stores. Hence they should increase the visibility of the product in Retail Stores and hence effective distribution network.

3. PROMOTION According to the data collected it is recorded that the level of discounts offered is low.

Hence company should try to provide more discounts on the product. Buy One Get One Free is the most preferred promotional offer.

The frequency of TV advertisements has decreased. They should try to come out with more innovative advertisement to catch the attention of the customers.

They should promote their new product Squeezy pack as people are less aware of this new size. It could increase the market share tremendously as it is very convenient to carry.

4. PRICE

It should be more competitively priced. Customers perceive it to be highly priced.

KEY FINDINGS & RECOMMENDATIONS (Cont..)