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A00059
Indian Institute of Management Ahmedabad February 23, 2016

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Fruitzone India Limited (D):
Additional Conclusive Research

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FIL is contemplating the launch of a new sugarcane juice and has entrusted IMI consultants
with the market research study. Exploratory research by IMI has shown positive results;
conclusive research through a survey of the Ahmedabad market has revealed that there is a
purchase intent for sugarcane juice and the key product attributes that influence this intent
were identified by regression analysis. Based on the consultants’ initial recommendations,
Preeti had a discussion with the product development team and they started work on the

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development of the product. Preeti had to decide on the consultants’ recommendations for
additional research to be conducted to validate the conclusive research.

Preeti and Hemant discussed the additional validation survey, taste testing and simulated
market testing that the consultants had recommended. After a brief deliberation, they decided
to proceed with all of the consultants’ recommendations. Preeti called upon the regional sales
manager of Gujarat and together they identified a suitable store where the consultants could
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perform the simulated test marketing. The consultants had identified the taste testing location
as the Cane-D retail sugarcane juice outlet and had decided to conduct the additional validation
survey at the same locations as the first conclusive research, namely, Alpha One Mall,
Hypercity and Reliance Mart stores.

VALIDATION USING CONCEPT CARDS

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Based on inferences from the first conclusive research, the consultants selected five attributes for
the concept card development. Under each of the attributes, several labels were chosen; these
would help generate various product concepts (refer Table 1 for attributes and labels used).
Statistical analysis software SPSS was used to generate orthogonal concepts to be tested further,
and this involved the specification of approximately three levels for each of the attributes (refer
to Table 2 for the list of concepts generated).
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Table 1: Labels under attributes

Flavor Type Packet Size Price for 200ml Packaging

1. Lemon 1. Energy 1. 200ml 1. 15 1. Tetra pack
2. Chat Masala 2. Health 2. 500ml 2. 20 2. Can
3. Ginger 3. Taste 3. 1000ml 3. 25 3. Pet Bottle
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4. Plain 4. Glass Bottle

Prepared by Professor Sanjeev Tripathi, Indian Institute of Management, Ahmedabad.

The author acknowledges the help and contribution of Kumaravel C (IIMA PGP 2015), and Vishwas
Raichur (Academic Associate, IIM Ahmedabad).
Cases of the Indian Institute of Management, Ahmedabad, are prepared as a basis for classroom
discussion. They are not designed to present illustrations of either correct or incorrect handling of
administrative problems.
© 2015 by the Indian Institute of Management, Ahmedabad.
This document is authorized for educator review use only by Dr. Asim Shabir, Other (University not listed) until Apr 2021. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 2 of 5 A00059

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Table 2: Orthogonal concepts generated by SPSS

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Card List
Card ID Flavor Type Packet Size PriceFor200ml Packaging
1 1 ChatMasala Health 500ml 20.00 Tetra pack
2 2 ChatMasala Energy 1000ml 15.00 Pet Bottle
3 3 Lemon Health 1000ml 15.00 Can
4 4 Ginger Taste 1000ml 25.00 Tetra pack

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5 5 Lemon Energy 200ml 15.00 Tetra pack
6 6 Lemon Energy 500ml 25.00 Glass Bottle
7 7 Ginger Energy 500ml 15.00 Pet Bottle
8 8 Lemon Taste 200ml 20.00 Pet Bottle
9 9 Plain Taste 500ml 15.00 Can
10 10 ChatMasala Taste 200ml 15.00 Glass Bottle
11 11 Ginger Energy 200ml 20.00 Can
12 12 ChatMasala Energy 200ml 25.00 Can

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13 13 Plain Energy 1000ml 20.00 Glass Bottle
14 14 Ginger Health 200ml 15.00 Glass Bottle
15 15 Plain Energy 200ml 15.00 Tetra pack
16 16 Plain Health 200ml 25.00 Pet Bottle
Survey collectors flashed each of these concepts (cards) at the customers, who had to rate them
on a scale of 1-5. About 50 responses were collected from packed juice drinkers.
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DATA ANALYSIS

The ratings were collated and the top preferred concepts and the relative importance of the
attributes were also determined. A ranked list of the concepts based on respondent preference is
given below. This helped the consultants to validate the results obtained from the previous
conclusive research. A regression analysis with the concept preference rating as a dependent
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variable and the attributes as independent variables was done. Based on the regression analysis,
the attributes were ranked based on their relative importance. See Exhibit 1 for the complete
regression results.

Concept Preference Concept Preference Concept Preference

Concept 15 16 Concept 12 10 Concept 10 4
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Concept 8 15 Concept 5 9 Concept 13 3

Concept 9 14 Concept 1 8 Concept 2 2
Concept 6 13 Concept 11 7 Concept 7 1
Concept 4 12 Concept 14 6
Concept 16 11 Concept 3 5
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Result Weightage Rank

Flavor 64.8% 1
Pricefor200ml 16.1% 2
Types 13.1% 3
Packaging 3.2% 4
Packet Size 2.8% 5

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Permissions@hbsp.harvard.edu or 617.783.7860
 3 of 5 A00059

SIMULATED TEST MARKETING

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Test marketing was done in a retail store outlet in the Vastrapur area to analyse the willingness
to buy sugarcane juice on a conclusive basis. The selected retail store served a population of
about 1,500, a majority of them being students. The rate of purchase of the product was likely to
give an estimate of the likely market for the product.

The Tropiviva product development team designed a 200 ml tetra pack with a sugarcane juice

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label and filled with apple juice to create the illusion of a realistic product. The simulated
product was shelved along with the regular Tropiviva flavors. However, they were tagged with
a separate UPC barcode and the retail checkout counter raised a notification every time the
simulated product was in a checkout counter and a Tropiviva marketing associate was assigned
to assist the customer.

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The customers willing to check out the product were notified about the simulated market study
by the Tropiviva marketing associate and were provided with a coupon or promotional item in
appreciation of their participation. Details of interested customers were also collected so that
they could be provided with the first opportunity to taste test the product which was under
development. A total of 20 – 200 ml packs were made available on the shelf and all of them were
sold within three hours. Though the simulated product was not given to the consumer, it was
not returned to the shelf in order to simulate realistic market conditions. Based on the simulated
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market test, the consultants were well convinced of the product purchase intent.

TASTE TESTING

Customers visiting the Cane-D outlet were approached for the taste test study. They were
offered three different variants sourced from the outlet, Lime, Plain and Lime + Ginger and
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asked to pick the most favourite among the three variants. From a sample of about 10
customers, plain sugarcane juice emerged as the most preferred variant with five customers
preferring it. Some response bias was expected since the customers that the product was tested
with were all natural juice lovers and so not a true sample of the packed juice consumer
segment.

RECOMMENDATIONS
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IMI submitted their final report to Preeti including the recommended product attributes and
positioning for promotion. Their recommendations were -

Taste Plain Sugarcane juice

Package size 200ml
Nature of Pack Tetra pack
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Price Rs.15
Promotion Energy Drink

Elated at the success of the simulated test marketing efforts, the consultants recommended
starting a nationwide market research even before the completion of the test marketing of the
actual product in Ahmedabad.

This document is authorized for educator review use only by Dr. Asim Shabir, Other (University not listed) until Apr 2021. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
 4 of 5 A00059

MANAGEMENT DILEMMA

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Preeti pondered over IMI’s market research report and was wondering whether all the bases
had been adequately covered in the research. Had the consultants drawn all relevant insights
from the study? The product development team was ready with the product and was awaiting
Preeti’s inputs with regard to the packaging, label design, size, flavours and pricing. Preeti
wondered if this study was adequate. Should another study be undertaken before the launch

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decision? Had she missed out on some analysis? She would need to make a presentation to
Hemant soon. She wondered what she should recommend.

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No
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Permissions@hbsp.harvard.edu or 617.783.7860
 5 of 5 A00059

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Exhibit 1

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Regression Analysis: Preference versus Flavour, Types, ...

The regression equation is

Preference = 12.8 - 2.60 Flavour + 0.545 Types + 3.18 PacketSize
- 0.636 Pricefor200ml - 1.30 Packaging

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Predictor CoefSECoef T P
Constant 12.841 2.811 4.57 0.001
Flavour -2.6000 0.5095 -5.10 0.000
Types 0.5455 0.6870 0.79 0.446
PacketSize 3.1818 0.6870 4.63 0.001
Pricefor200ml -0.6364 0.6870 -0.93 0.376

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Packaging -1.3000 0.5095 -2.55 0.029

S = 2.27836 R-Sq = 84.7% R-Sq(adj) = 77.1% op

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No
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This document is authorized for educator review use only by Dr. Asim Shabir, Other (University not listed) until Apr 2021. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860