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Research on Consumer Preference for fruit juice

Research on Consumer Preference for fruit juice

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Research on consumer preferences towards fruit juice in india
Research on consumer preferences towards fruit juice in india

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Published by: amardeep on Mar 17, 2010
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01/14/2013

Marketing Research Project

On
Consumer Decision Analysis For
Purchase of Fruit Drinks


Submitted to : Submitted by:
Prof. Vijay Nagrani Amardeep
Bardhan
Chandan Jha
Vaibhav Jaiswal
Faisal Alam
PGDRM &
PGDM (IB)



ACKNOWLEDGEMENT


The following project ´Consumer behavior on Fruit Drinksµ was
successfully completed under the guidance of our mentor Mr.
Vijay Nagrani. His guidance and efforts were vital for the
completion of the project for which we are thankful. The
cooperation and support extended by our seniors and batch
mates. I also thank everybody for their valuable and insightful
suggestions during my project. All people who filled up the
questionnaire also deserve to be appreciated for their help and
cooperation.
Thank You,
Amardeep Bardhan
Chandan Jha
Vaibhav Jaiswal
Faisal Alam
Executive Summary

This project aims to find out the various factors influencing the consumer decision while making
a purchase of a fruit drink in the age group of 19-30 in the city of Delhi-NCR. Background talks
about various factors that have led us to undertake this study and how and to whom this report
will benefit. Objectives talks of types of data the research project will generate and how these
data is relevant. A statement of value of information is also included in this section. Research
approach gives a non technical description of the data collection method, measurement
instrument, sample and analytical techniques.
The beverage market in India is worth 2074.67 Million INR. Though the major portion of the
market is still dominated by the carbonated soft drinks there is major shift towards the Juice
segment. There was a growth of 31.52% in the Juice segment from 2008 to 2009. As a result of
this phenomenal growth, a lot of competition has entered the market. A number of new brands
have flooded the market. The competition from Indian beverages such as Sugarcane Juice,
Buttermilk, and Fresh Juices etc has also captured a sizeable share of the market.

Due to these changes in the beverage market there is a need to identify and evaluate the reasons
for the shift in the consumer purchasing pattern. This study aims to determine the factors
influencing the consumer decision while buying fruit drinks in the age group 19-30 in the city of
Delhi-NCR.

I also need to study the factors that are now driving the consumer¶s purchasing decision. Also,
due to the increase in the competition there is a need to determine the awareness levels for the
various brands amongst the consumers. With the availability of a number of channels of
distribution for the beverages in India, I will also try to identify the most preferred shopping
channel of beverages for a consumer.





Contents
Objectives ............................................................................................................................................... 1
Research Approach .................................................................................................................................. 2
Data collection methods ....................................................................................................................... 2
Measurement Instruments: ................................................................................................................... 2
Samples ................................................................................................................................................... 3
Analysis Techniques ................................................................................................................................ 3
Factor Analysis .................................................................................................................................... 4
CrossTabs ............................................................................................................................................ 5
Correlation......................................................................................................................................... 11
Conclusion ............................................................................................................................................ 13
Annexure ............................................................................................................................................... 14
Perceptual Maps: ............................................................................................................................... 14
Questionnaire: ........................................................................................ Error! Bookmark not defined.












Objectives



Primary research objective

To determine the factors influencing the consumer decision while buying fruit drinks in the age
group 17-30 in the city of Delhi-NCR.




Secondary research objective

y To determine the product attributes influencing purchase decision of fruit drink brands.
y To determine the reasons for consuming various fruit drink brands.
y To determine the most preferred SKU(quantity) in fruit drink category.
y To determine the most preferred channel in the fruit drink category.

Data which research plans to generate
y Factors influencing the choice of fruit drinks over other beverages.
y Factors influencing choice of a particular fruit drink brand.
y Factors influencing the choice of a particular channel in fruit drink category.














Value of Information to Management
This report aims to generate information on various factors influencing consumer decision while
purchasing a fruit drink. Companies can utilise this information for identifying the awareness
levels of their respective brands in the fruit drink category. Also companies can evaluate their
positioning and promotion strategies based on the factors influencing the choice of a particular
fruit drink brand.. The information on factors influencing the choice of a channel can be used to
focus on the growing channels and also in managing existing channels. This report also contains
broad based trends on consumer profile, awareness levels, usage patterns and fruit drink category
as a whole which can be utilised to make inferences about the future.

Research Approach

Data collection methods

a) Secondary Research
External secondary data has been generated to obtain volume of sales regarding beverage
markets, fruit drinks, each of the brands and the positioning of each of the brands.
b) Survey Research
y Data was collected from candidates using questionnaire. The questionnaire was
distributed in colleges and people on the street.
y I distributed the questionnaires outside the shops to gather data from people who had
come to visit there.
y I made an online questionnaire and circulated on the internet and gathered results from
those.

Measurement Instruments:
y The measurement instrument in the questionnaire was a five point Likert scale.
y Apart from details regarding their choice of drink for refreshment, their frequency of
visits and the channels they choose, their spending patterns will also be mapped.
y The data was extracted and put in MS Excel.
y The measurement was designed to get a fair idea about the various attributes and
conducted factorial analysis of the important attributes.


Samples

The aim was to collect 120 samples for the analysis. The samples should be such that they are
consumers of fruit drinks. I also tried to get an adequate ratio of men and women in the samples.
The main demographics targeted were the younger age group as they are more health conscious
and aware of such health drinks. Also I tried to focus more on the college going crowd and
young professionals as they would be more interested in trying out new products and were more
conscious.
Buyers who have been consuming fruit drinks were better able to answer the questions regarding
the influencing factors and the reasons for their consumption and purchase. The samples
collected from internet have also been very valuable in the research.
Analysis Techniques

y The analysis techniques used have been on SPSS and the tests were performed to
ascertain the factors influencing the consumer decision while buying fruit drinks.
y Factor analysis was conducted to discern out of the 13 factors mainly which factors
influence the buying habits of the consumers. Ultimately I identified 5 factors which
mainly have an influence.
y I also conducted correlation tests to find out the various reasons for purchasing any
particular brand of fruit drink.
Limitations:
y The main limitation is the sampling conducted. It was done in a random manner and no
particular technique followed. In the first survey a greater number of college students
have been surveyed. The data might not be representative of the entire population.
y Various statistical techniques as learned have been implemented and conclusions as best
possible have been drawn making few assumptions as and when required.






Factor Analysis

The factors recognized after the factor analysis are as under:
Factor 1: Health and Hygiene
1. Packet cleanliness
2. Nutrition Value
3. Expiry Date
Factor 2: Media Influence
1. Promotion Schemes
2. Brand Value
3. AD Frequency
Factor 3: Convenience
1. Range of flavors
2. Availability
Factor 4: Product Features

1. Price
2. Flavor

Factor 5: Package Design
1. Visual Packaging

Attributes those were not important:
1. Brand Ambassador
2. Quantity Available

y The perceptual maps show the mapping of different factors in the minds of the customers
and the association between them. The data was reduced from many attributes to 5
factors that have similar attributes.

y The various factors mapped according to the rotated results of factor analysis. The factors
were given names based on the attributes in them. These factors were used to form the
factor analysis where two factors were mapped on X and Y axis to know the relation
between them.



y The factors help the company to know how the product is currently mapped in the
customer¶s mind. If a target consumer is focused upon then the factors can be changed
and a different map can be formed.

y The attribute brand ambassador and package sizes available are not a major
attribute in any of the factors. This justifies the fact that almost all the major fruit
drinks are not endorsed by any of the big brand ambassador barring a few such as minute
maid pulpy orange (Nikhil Chinappa ) . Also the variety of the package sizes available is
not affecting the consumer decision while making a purchase for fruit drinks.




CrossTabs
1. PURCHASE FREQUENCY VS SKU PREFERRED


Crosstab
Count


SKU
Total

200 ml 300 ml 500 ml 1 litre
purchasefrequency 1-3 times 25 12 5 2 44
4-6 times 15 6 6 0 37
more than 6 times 7 1 4 4 16
rarely 11 1 5 6 23
Total 68 20 20 12 120

Chi-Square Tests

Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 19.117
a
9 .024
Likelihood Ratio 20.380 9 .016
Linear-by-Linear Association 8.109 1 .004
N of Valid Cases 120



Chi-Square Tests

Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 19.117
a
9 .024
Likelihood Ratio 20.380 9 .016
Linear-by-Linear Association 8.109 1 .004
a. 10 cells (62.5%) have expected count less than 5. The minimum
expected count is 1.60.

Since p value is less than alpha i.e. .05 (95% confidence level), therefore h0 is rejected. This
shows that there is high association between purchase frequency and SKU or quantity packs.
This is an indication of the fact that people preferring smaller SKUs usually purchase more as
compared to others. Thus high association between purchase frequency and SKU (pack sizes ) is
established .




2. PURCHASE FREQUENCY VS GENDER

purchasefrequency * gender Crosstabulation
Count


gender
Total

male female
purchasefrequency 1-3 times 19 15 34
4-6 times 18 9 27
more than 6 times 12 4 16
rarely 17 6 23
Total 66 34 100







Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 2.776
a
3 .428
Likelihood Ratio 2.776 3 .427
Linear-by-Linear Association 2.387 1 .122
N of Valid Cases 100

a. 0 cells (.0%) have expected count less than 5. The minimum expected count
is 5.44.

Since p value is greater than alpha i.e. o.05 (95% confidence level), therefore there is no
association between purchase frequency and gender.








3. CHOICE OF CHANNEL VS FACTORS AFFECTING CHOICE OF CHANNEL

channel * reasonforchannel Crosstabulation
Count


reasonforchannel
Total

Pricing Ambience Nearness Service Display Reputation Occasion
channel Retail store 4 8 23 0 13 0 6 54
Supermarket 4 6 6 0 6 1 0 23
Cineplex 1 0 0 0 2 2 0 5
Restaurants 1 3 1 1 3 0 0 9
Travel 1 2 1 0 1 0 0 5
Pan shops 0 2 0 0 0 0 0 2
Others 1 0 0 0 0 0 1 2
Total 12 21 31 1 25 3 7 100




Chi-Square Tests

Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 68.211
a
36 .001
Likelihood Ratio 50.165 36 .059
Linear-by-Linear Association 1.108 1 .293
N of Valid Cases 100

a. 43 cells (87.8%) have expected count less than 5. The minimum expected count
is .02.


Here p value is less than alpha i.e. 0.05 (95% confidence level) therefore Ho is rejected. This
shows that there is high association between choice of channel and factors affecting the choice of
channel. This gives an indication such that those people who consider availability and nearness
as their factor affecting the choice of channel might prefer buying fruit drink from retail stores or
grocery stores. Thus a high association is established.


CROSSTABS OF PURCHASE FREQUENCY VS REASONS FOR HAVING FRUIT
DRINKS
I conducted crosstabs of purchase frequency with the scores /ranking given by various
respondents to the various reasons for drinking fruit drinks such as socialisation, refreshment,
enjoyment, mental lift, attitude, basic thirst, taste etc. out of all these crosstabs association was
found between two cases. The two cases have been given below:







1. PURCHASE FREQUENCY VS REFRESHMENT

purchasefrequency * refreshment Crosstabulation
Count


refreshment
Total

strongly disagree disagree
neither agree nor
disagree agree strongly agree
purchasefrequency 1-3 times 20 7 5 2 0 34
4-6 times 18 6 0 1 2 27
more than 6 times 9 7 0 0 0 16
rarely 8 12 2 1 0 23
Total 55 32 7 4 2 120


Chi-Square Tests

Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 20.628
a
12 .056
Likelihood Ratio 23.332 12 .025
Linear-by-Linear Association .108 1 .742
N of Valid Cases 120

a. 12 cells (60.0%) have expected count less than 5. The minimum expected count
is .32.

Since p value is less than alpha (95% confidence level) thus there is high association between
refreshment purpose and purchase frequency. This might be an indication of the fact that people
drinking fruit drinks for refreshment purpose generally buy more as compared to others.







PURCHASE FREQUENCY VS BASIC THIRST

purchasefrequency * basicthirst Crosstabulation
Count


basicthirst
Total

strongly disagree disagree
neither agree nor
disagree agree strongly agree
purchasefrequency 1-3 times 6 15 7 5 1 34
4-6 times 11 6 6 4 0 27
more than 6 times 3 9 0 4 0 16
rarely 11 9 2 0 1 23
Total 31 39 15 13 2 120


Chi-Square Tests

Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 20.262
a
12 .062
Likelihood Ratio 26.177 12 .010
Linear-by-Linear Association 4.223 1 .040
N of Valid Cases 100

a. 12 cells (60.0%) have expected count less than 5. The minimum expected count
is .32.

Since p value is less than alpha (95%) therefore there is high association between purchase
frequency and basic thirst /filling purpose. This might be an indication of the fact that people
drinking fruit drinks for basic thirst / filling purpose generally buy more as compared to others.






Correlation

Correlation of the various brands (i.e. Appy, Real, Tropicana etc) was done with various reasons
for drinking such as refreshment, enjoyment, vitality, mental lift etc. I tried to identify the
various reasons that are correlated with various brands .This activity basically helped us in
identifying the perception and connotations of people towards various fruit drink brands.
Following are some of the inferences that I established after conducting the correlation analysis.
1. There was a significant correlation between brand Real and the following reasons for
drinking :
y Health
y Enjoyment
y Attitude

2. There was a significant correlation between brand Tropicana and the following reasons
for drinking :
y Health
y Enjoyment

3. There was a significant correlation between brand Maaza and the following reasons for
drinking :
y Attitude

4. There was a no correlation between brand Slice and the various reasons for drinking.

5. There was a significant correlation between brand Appy and the following reasons for
drinking :
y Socialising

6. There was a significant correlation between brand Frooti and the following reasons for
drinking:
y Taste


y Mental lift

7. There was a significant correlation between brand Pulpy Orange and the following
reasons for drinking :
y Attitude

8. There was a significant correlation between brand Twister and the following reasons for
drinking:
y Taste
y Mental lift

9. There was a significant correlation between brand Others (ex. Lehberry etc.) and the
following reasons for drinking :
y Attitude
y Basic thirst






Conclusion

On the basis of the data collected and the tests conducted I have arrived at the following
conclusions:
With the help of correlation I was able to identify the attributes that consumers associate with the
various fruit drinks and which in turn drive their purchase decision for the same.
For example Tropicana is associated with health and enjoyment whereas Appy is associated with
socialising. These reflect the perceptions of the various fruit drinks in the mind of the consumers.
The crosstab between purchase frequency and SKU showed that those purchasing smaller SKU¶s
purchase more frequently as compared to those who purchased a 500ml or 1litre. On the other
hand there is no impact of gender on purchasing frequency for fruit drinks.
There is a high association between the channels preferred and the factors affecting these
channels. The most important factor came out to be location or nearness of the channel.
There is also a high association between purchase frequency and reasons for consuming fruit
drinks such as refreshment and fulfilling basic thirst.
In factor analysis I found out 5 factors which mainly have an impact on the purchase of a fruit
drink. There were two factors which did not have any significant impact.
Also, I found out that the most preferred channel for purchase in retail stores. The most preferred
SKU is 200ml packs which could be due to convenience.
The most preferred drink is Frooti followed by Tropicana and Real.






Annexure

Perceptual Maps:
1. Health & Hygiene Vs Media Influence

health and
hygiene
media/external
influence
promotionschemes -0.08 0.856
packetcleanliness 0.926 0.004
brandvalue -0.116 0.794
nutritionvalue 0.778 -0.074
adfreq -0.065 0.8
expirydate 0.805 -0.009




0.778




2. Health & Hygiene Vs Convenience


health and hygiene convenience
range_flavours 0.112 0.847
availability 0.011 0.82
packetcleanliness 0.926 0.152
nutritionvalue 0.778 -0.043
expirydate 0.805 0.244



3. Health & Hygiene Vs Product
Features


health and
hygiene
product features
price -0.14 0.691
packetcleanliness 0.926 -0.013
nutritionvalue 0.778 0.067
flavour 0.147 0.779
expirydate 0.805 0.04











4. Media Influence Vs Convenience

media influence convenience
range_flavours -0.069 0.847
availability 0.001 0.82
promotionschemes 0.856 -0.039
brandvalue 0.794 -0.159
adfreq 0.8 0.052











5. Media Influence Vs Product Features


media influence product
features
price 0.003 0.691
promotionschemes 0.856 0.172
brandvalue 0.794 0.125
flavour 0.118 0.779
adfreq 0.8 0.046











6. Convenience Vs Product Feature



convenience product features
range_flavours 0.847 -0.056
availability 0.82 0.009
price 0.088 0.691
flavour -0.113 0.779


















7. Health & Hygiene Vs Package Design



health and
hygiene
package
design
visual_packg 0.084 0.872
packetcleanliness 0.926 -0.014
nutritionvalue 0.778 -0.088
expirydate 0.805 0.043














8. Media Influence Vs Package Design



media/external
influence
package
design
visual_packg 0.072 0.872
promotionschemes 0.856 -0.032
brandvalue 0.794 -0.028
adfreq 0.8 0.066








9. Convenience Vs Package Design


convenience package design
range_flavours 0.847 0.033
availability 0.82 0.042
visual_packg 0.062 0.872











10. Product features Vs Package design



product features package design
visual_packg -0.023 0.872
price 0.691 0.438
flavour 0.779 -0.261









QUESTIONNAIRE

1. Whom do you buy fruit drinks for? (Tick one)
a) Myself b) Family c) Children d)Institutional purposes / social occasions

2. How often do you have a fruit drink?
a) 1-3 times a week b) 4-6 times a week c) More than 6 times a week
b) Rarely (fortnightly )

3. What quantity do you usually prefer to buy?
a) 200-250 ml (Tetrapak) b) 300 ml c) 500 ml bottle d)1 litre

4. Through which medium did you come to know about your preferred fruit drink brand?
a) Hoardings and banners b) Newspaper and magazines c) TV/radio
d)Word of mouth e) Others «««««..

5. Do the following reasons influence your consumption of fruit drinks?



REASONS Strongly
disagree
Disagree Neither agree
nor disagree
Agree Strongly
Agree
For social occasions /
entertainment

It acts as a refreshment


It provides enjoyment
It tastes very good
It satisfies my basic thirst
and is filling

I feel a sense of well being
after consuming it

It gives me vitality and
energy

It relaxes me mentally
It reflects my attitude




6. Rank the following fruit drinks from 1 to 5, with 1 being least preferred and 5 being
most preferred:
a) Real «««««««««««
b) Tropicana «««««««««««
c) Maaza «««««««««««
d) Slice «««««««««««
e) Appy «««««««««««
f) Frooti «««««««««««
g) Pulpy orange «««««««««««
h) Twister «««««««««««
i) Others «««««««««««

7. How important are the following factors for purchasing a fruit drink?

FACTORS Very less
important
Less
important
No
Influence
Important Very
Important
Flavor
No. of flavors
Availability and Convenience
Price
Cleanliness of packet/ not
damaged

Manufacturing date /expiry
date

Frequency of advertisement
Brand ambassador
Nutritional value/ calorie
content

Brand value /brand name
SKUs available
Promotion schemes/discounts
Visual appeal of packaging


8. Which is your most preferred channel for purchasing a fruit drink?
a) Retail store/grocery store
b) Supermarket/hypermarket
c) Cineplex
d) Pan shop/kiosks
e) Restaurants
f) Travel
g) Others««««««««««««.



9. Which is the most important characteristic for choosing the channel?
a) Pricing
b) Ambience
c) Location/ nearness
d) Service
e) Display /merchandising
f) Reputation
g) Occasion
h) Others

Personal Details
1. Name :
2. Address :

3. Contact Nos :
4. Age
a) 17-20
b) 21-24
c) 25-28
d) 29 and above

5. Gender:
a) Male
b) Female

6. Income:
a) Student
b) Less than 50,000
c) 50,000 to 1,00,000
d) 1,00,000 to 5,00,000
e) Above 5,00,000


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