Brm Project

BRM PROJECT VGSOM MBA: 2010-12

A Report on preferences and consumption patterns of Instant Noodles.

Preamble: The objective of the report is to determine the consumer preferences for instant noodles. It is aimed at determining the features most preferred by consumers and segmenting the population according to their preferences. The same would enable a new brand to adopt the most desirable features in its product and strategies to promote the same. Tool Used: The software, PASW was used to conduct the analysis. Previously known as SPSS, it is among the most widely used programs for statistical analysis. Methodology Used: The Cluster Analysis methodology was used to conduct our analysis. Cluster Analysis: The term cluster analysis encompasses a number of different algorithms and methods for grouping objects of similar kind into respective categories. A general question facing researchers in many areas of inquiry is how to organize observed data into meaningful structures, that is, to develop taxonomies. In other words cluster analysis is an exploratory data analysis tool which aims at sorting different objects into groups in a way that the degree of association between two objects is maximal if they belong to the same group and minimal otherwise. Given the above, cluster analysis can be used to discover structures in data without providing an explanation/interpretation. In other words, cluster analysis simply discovers structures in data without explaining why they exist. Our aim to use the Cluster Analysis was to segment the Noodle customers according the Taste, Brand, Age, income, No of different Flavours offered etc. For the data gathered, 2-step clustering methodology was used to obtain the clusters.

Limitations: The survey was primarily conducted amongst the student community, thus the sample set received was not a true reflection the population demographic.

Questionnaire Used: The following questionnaire was used to obtain the responses.

Questionnaire for new instant noodle launch This is a survey undertaken to evaluate consumer preferences regarding noodle brands * Required

Top of Form

Name * Age *

•

35 years

•

I do not wish to disclose Occupation *

•

Student

•

Professional

•

Self Employed Monthly Family Income *

•

< Rs. 10,000

•

Rs. 10,000 - Rs. 25,000

•

Rs. 25,000 - Rs. 50,000

•

> Rs. 50,000 List the products in the order of preference * 1 - Most preferred, 5 - Least preferred

1

2

3

4

5

Horlicks Foodles

Nissan Top Ramen

Knorr Soupy Noodles

Nestle Maggi

Sunfeast Yipee

Rate the importance of the following while choosing a noodle * 1 - Least Important, 5 - Highly Important 1

2

3

4

Brand

Length of noodles

Taste

Variety of flavors offered

Price

Packaging

Non-stickiness

Ease of preparation

Availability

Health Ingredients

Who decides which brand of noodles to buy in your household? *

5

•

Children

•

Parents

•

Spouse

•

No specific decision-maker How do you come to know about new product launches? *

•

Television

•

Newspapers/ Magazines

•

Radio

•

Friends

•

Store Display

•

Others Do you like to try new flavors? *

•

Yes

•

No What pack size do you normally purchase? *

•

Single pack

•

Double pack

•

Family pack (4-in-1 pack)

Analysis : For the final analysis, the data table in PASW was obtained as such. Name

Type

Age

Numeric

Description

Value Labels

Measurement Level

{1, 18-25}...

Ordinal

Occupation

Numeric

{1, student}...

Nominal

Income

Numeric

{1,