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 preferences over various product attributes along with an attempt to see consumer responses towards noodles as a healthy food product as one such attribute in order to determine Foodles future stand in the market. A comparative analysis has been made 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 Nestlé, 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 noodlesN Minimum Maximum Mean Std. Deviation

Statistic Statistic Statistic Statistic Std. Error Statistic

TASTE 30 4.00 5.00 4.8000 7.428E-02 .4068 AVAILBILITY 30 3.00 4.00 3.8333 6.920E-02 .3790

BRAND 30 4.00 5.00 4.4000 9.097E-02 .4983 DIFFERENT

FLAVOUR30 3.00 5.00 3.8333 .1081 .5921

OFFERS 30 1.00 3.00 2.4000 .1406 .7701 FOOD VALUE 30 3.00 4.00 3.4333 9.202E-02 .5040

VARIOUS QUANTITY AVAILABLE

30 3.00 4.00 3.7667 7.854E-02 .4302

FAMLY PRFERENCE

30 3.00 4.00 3.6333 8.949E-02 .4901

REFERENCE FROM

FRIENDS

30 2.00 3.00 2.6667 8.754E-02 .4795

PACKGING 30 2.00 4.00 2.6667 .1207 .6609

Valid N (listwise)

30

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 CrosstabulationAGE Total

TASTE

1.00 2.00 3.00 4.004.00 Count 1 2 3 0 6

Expected Count

.4 1.8 3.2 .6 6.0

% within TASTE

16.7% 33.3% 50.0% .0% 100.0%

% within AGE 50.0% 22.2% 18.8% .0% 20.0%

% of Total 3.3% 6.7% 10.0% .0% 20.0%5.00 Count 1 7 13 3 24

Expected Count

1.6 7.2 12.8 2.4 24.0

% within TASTE

4.2% 29.2% 54.2% 12.5% 100.0%

% within AGE 50.0% 77.8% 81.3% 100.0% 80.0%

% of Total 3.3% 23.3% 43.3% 10.0% 80.0%

TASTE

5.004.00

Co

un

t

14

12

10

8

6

4

2

0

AGE

children

teenagers

adult

vaterens

BRAND * AGE CrosstabulationAGE Total

BRAND

1.00 2.00 3.00 4.004.00 Count 1 7 7 3 18

Expected Count

1.2 5.4 9.6 1.8 18.0

% within BRAND

5.6% 38.9% 38.9% 16.7% 100.0%

% within AGE 50.0% 77.8% 43.8% 100.0% 60.0%

% of Total 3.3% 23.3% 23.3% 10.0% 60.0%5.00 Count 1 2 9 0 12

Expected Count

.8 3.6 6.4 1.2 12.0

% within BRAND

8.3% 16.7% 75.0% .0% 100.0%

% within AGE 50.0% 22.2% 56.3% .0% 40.0%

% of Total 3.3% 6.7% 30.0% .0% 40.0%

BRAND

5.004.00

Co

un

t

10

8

6

4

2

0

AGE

children

teenagers

adult

vaterans

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.

Derived Stimulus Configuration

Euclidean distance model

brand association

2.01.51.0.50.0-.5-1.0-1.5-2.0

bra

nd

att

rib

ute

s c

osid

ere

d f

or

bu

yin

g

1.5

1.0

.5

0.0

-.5

-1.0

-1.5

yummy

w aiw ai

mayos

knornodl

foodles

topramn

maggi

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 CoefficientsSL NO Function

1 2 3 4 5 6

1 TASTE -.146 -.027 .907 .189 .193 .185 2 PRICE .733 -.002 .077 -.497 -.163 -.008 3 AVLIBILITY -.366 -.156 -.025 -.118 -.632 .454 4 FLAVOURS -.004 .761 -.321 -.093 .339 .304 5 OFFERS .082 .003 .079 .196 .680 .110 6 FOODVALU .007 .431 .392 .200 -.266 -.537 7 PACKAGIN -.317 -.290 -.024 -.330 .138 -.544

8 DIFFERENT QUANTITY AVAILABLE

.786 .003 .238 .373 .055 .033

9 FAMILY PREFEREN

CE

.051 .028 .042 -.117 .074 .357

10 REFFERNCE

.172 .036 -.317 .580 -.302 -.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: Male Female.

3) Age: Children teenager adult veteran

4) Do you consume noodles? Yes No

5) How important are the following attributes to you when you purchase noodles?

Attributes Very Strongly

strongly Neutral poorly Very poorly

Taste

AvailabilityBrand nameDifferent of flavors

Promotions and offersFood value

Availability in various quantityFamily preference

Kins and friend’s ReferenceAttractive packaging

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 No

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

Attributes Maggi TopRaymen

Foodles Knor souppy noodles

Mayos Wai-wai

Yummy noodles

TasteAvailabilityBrand nameDifferent of flavorsPromotions and offersFood valueAvailability in various quantityFamily preferenceKins and ReferenceAttractive packaging

9) 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 TopRaymen

Foodles Knor souppy noodles

Mayos Wai-wai Yummy noodles

Maggi

TopRaymen

Foodles

Knor souppy noodlesMayos

Wai-wai

Yummy noodles