Mar 303 Indian Institute ef Management Ahmedabad Sse a. = eS CWA Indian Products Limited (A) CA364 ee Preparing a Plan for Data Ana In 1984, indian Products Limited (IPL) had conducted @ market research study t0 explore the possibility of introducing another brand of refined cooking oil in small packs of one to four/live kilograms. IPL was a large multi-division company manufacturing and marketing a variety of products for houschold use. Its refined groundnut oil brand, as also a competing refined groundnut oil brand, commanded a market share of 40 10 45% in the Small Pack Refined Oil market (SPRO). Background of the Problem ‘The total cooking medium market in India was approximately 30 lakh (50,00,000) tons. OF this, approximately 12% was ghee and buter, 16% vanaspati (hyrogenated oils), and remaining about 72% Gils. The refined oils accounted for only about 2% of the total cocking medium tonnage or abut 3% of the total cooking oil tonnage. Of the total refined oil market. bulk packs (16 kg. tins) constituted about 4/Sth to 5/6th and the balance as in small packs. Bulk packs of both oils and vanaspati were 4 major phenomenon in the market, Most of these were opened by retaifers and the contents sald loose to consumers in small quantities, The per kg. price of loose fats to consumers was lower than the per ‘x, However, Lie quality of loose fats could not be relied upon by consumers kg, price of small pat cause of possibitities of adulteration. IPL executives observed two trends in the SPRO market over the last few years. Firstly, the SPRO ‘market was either stagnant of declining. However, the second trend observed was of increasing brand proliferation in the SPRO market. IPL executives believed that stagnation in the SPRO market was primarily because of severe price competition from bulk pack refined oits (which were actually sold Toose by retailers), filtered oils (both bulk and small pack), and vanaspati (both bulk and small pack). However, the protiferation of brands in SPRO market by both existing and new marketers promised higher price realization and higher profitability ‘A further perusal of SPRO market revealed interesting trends in terms of type of oil base used and the nature of promises made to consumer. More and more of new brands of SPRO were non-groundaut oil brands, This was in contrast to the Zeneral trend in oil market where groundnut oif had consistently gained ascendancy. The new oils in SPRO market were sunflower oil, com oil, soyabean oil, and coconut oil. Except for coconut oil, “hich was used as cooking medium in southem parts of India in ‘limited way, other oils were totally new to the Indian kitchen. In terms of consumer benefits, the new brands of SPRO claimed some specific consumer benefits and were promoted as such at least on ‘a modest scale. Several new SPRO brands were claiming nutritional or specitic health benefits. Such claims, particularly, by non groundnut off brands, had scientific justification as the oils contained higher proportion of polyunsaturated fatty acids (PUFA). The later was found 0 be associated with Prepared by Professor Abhinandan K. Jain on the basis oF 8 project "Concept Evaluation and Positioning of @ New Brand of Refined Oil,” by Arun K. Harit Talwar, Subramaniam, K.R., Rak Garg, and Kaushal, YN participants of MRIS course, 1984-85. Case material of the Indian institute of Management, Ahmedabad, is prepared as a basis for class discussion, Cases are not designed to present illustrations of either correct or incorrect handling of administrative problems, Copyright © 1994 by U Indian Institut2 of Management, Ahmedabad, cases ‘th i CA 658. & JAI j2 HMAIBar 303 Iower levels of cholesterol in blood and hence was likely to result in lower incidence of high blood pressure and related cardio vascular diseases, IPL. Executives believed that SPRO market was poised for growth in future, They contended that growth would take place if SPRO brands could offer significant and distinct consumer benefits including some related to health), IPL executives felt that a second brand offering distinct consumer benefits (particularly related to health) could help the company in i) capturing a substantial share of health conscious segment; and ii) increase overall share of IPL. in SPRO market. IPL, therefore, was interested in introducing a new brand in the SPRO market. Towards this end, some initial work was done by R&D cell of IPL. The company had two base-oil options: i) com oil; and ii) sunflower oil for developing a new brand, Objectives of Research ‘The overall objectives of the research were: i) to assess whether there was an opportunity for a new brand in the SPRO market; and ii) if yes, to determine the best product concept in terms of consumer appeal/acceptance, The research was conducted in three sequential phases. Phase I was used for identifying a concise list of important product attributes and consumer benefits, Phase IT was used to generate a large number of product concepts on the basis of the important attributes/benefits identified in Phase I and screening the same to arrive at table product concepts. At the end of Phase I four product concepts were selected for further investigation, The purposes of Phase II were to achieve the overall objectives of the research. Phase 1 In this phase, first a list of 18 relevant attributes/consumer benefits was generated on the basis of i) review of published literature, and ii) review of research conducted in the past by the company. The next stop consisted of study of technical literature of com and sunflower oil and discussions with knowledgeable persons. In this step, those attributes/consumer benefits which could not be provided by the two base oils under consideration were found and deleted from the list of 18. A list of eight aitributes/bonefits was abstracted from the original list of 18 (See Exhibit 1), The third step was used to find out the attributes/benefits which were being offered by current SPRO brands and the extent to @ which the consumers were satisfied on the attributes/benefits which were being offered by current . SPRO brands and the extent to which the consumers were satisfied on the attributes/benelfits by using their current brands. Studies conducted by the company and published literature were used for this purpose. Appropriate benefits/attributes which could be used for developing concepts for the two base oils were then generated as follows For Corn Oil For Sunflower Oit 1. Colour 1. Easy digestibility 2. Taste/Flavour 2. Bnergy and Nutrition 3. Energy and Nutrition 3. General Fitness 4, General Fitness 4, Economical in Usage Phase II Using the above benefits/attributes of the two base oils, a total of 21 concepts were generated. These concepts were screened by the research team through discussions within the team as well as through discussions with some experts. In this process, concepts which did not convey much or did not soundUMAIMar 303 3 authentic or which did not differ much from another concept were eliminated. The four concepts, two cach for com and sunflower oils, finally setected were as under: P, For general fitness and easy digestibility, eat food cooked in refined sunflower oil. With high poly unsaturated fatty acids, it keeps your family healthy and active all through the day. Bo And now! Fry twice the number of puris in lesser amount of oil. Brand "X° of refined sunflower oil cooks more food in less oil. And fastly too! Save money. Use this oil. P, Com is high in proteins, Use rich golden colour refined com oil for energy and nutrition. PB We all like food that is tasty and Keeps the family healthy and fit, Refined com oil, popular all over the world, provides fitness and taste—Just like ‘makai ki roti"! Phase 111 ‘This was the main phase for achieving the overall research objectives. This consisted of a personally administered structured questionnaire survey. The research was conducted in Ahmedabad. Sample: The selected sample reflected the consumer profile of refined oil users. Earlier researches suggested that user families of refined oil were educated and belonged to upper middle, upper and upper - income groups. Further, the housewife in general had cosmopolitan views and also cooked food items used primarily by communities other than her own, For conducting the interviews three localities of Ahmedabad were selected on the basis of convenience. ‘These, in the judgment of research team, were likely to provide a better success rate, thus saving time ‘and cost. Quotas were fixed by community, age, and income of the respondeny/family. Following table provides details of planned and achieved sample size in the research: Sample Dist Qn Dimension | No. of Categories No. of responses | No. of responses cats planned actually obtained North Indian 15 23 South Indian 15 13 Community 4 West (Marathis & Gujaratis) 15 10 East (Bengalis) 15 4 Below 35 years 20 16 Age 3 | Between 36-45 years 20 20 Above 46 years 20 4 Only housewife 30 23 Occupation 2 Others 30 2 Total Sample Size 60 30, Total strata: 4.x 3.x 2= 24 A sample of 60 implied approximately 2-3 respondents in each stratum,4 UMAIMar 303 ched (see Exhibit 2), The questionnaire was Instrument: The questionnaire used in the research is att designed to elicit 1. Use information: of cooking mediums (Q.1), of packed refined oils (Q.2), and of current and past brands of packed refined oil (Q.3). 2. Rank of the eight attributes/benefits by the respondent in terms of their importance for buying refined oil (Q.4), 3. Evaluation of current brand: overall as well as on the eight attributes/benefits (Q.5), and likes and dislikes (Q.6). 4. Level of satisfaction/dissatisfaction with current brand (Q.7), and brand loyalty (Q.8), 5. Evaluation of brands used (other than the current) and the four product concepts on overall basis and on the eight attributes/benefits (Q.9) 6, Evaluation of the four product concepts: advantages/disadvantages (Q.10), uniqueness (Q.11), believability (Q.12), and intention to buy (Q.13) 7. Demographic/classificatory information: Age, occupation, community, and education (Q.14). Appropriate aids were used (cards, instructions, etc.) for effectively administering the questionnaires. Data Preparation A total of 55 compiete interviews were conducted. OF these five filled up questionnaires were discarded because the respondents had not been able to comprehend the four product concepts. The remaining fifty questionnaires were to be used for data analysis (the achieved sample distribution by quota categories was for these fifly respondents). Responses to two questions (9b and 10) were removed from further analysis. This was because responses to Q.10 were used for testing the comprehension of the product concepts, once this purpose ‘was served, these responses were not thought to be relevant. A perusal to responses of question 9b did not offer any significant insights into consumer opinions about brand in use, Both these open-ended questions were, therefore, discarded from further analysis. Also, as there were no other open-ended uestions, categorizing of responses was not required. Researchers’ Task ‘The researchers were now in the process of preparing a code book and master table. More importantly they were thinking of the plan of data analysis to be used for drawing appropriate inferences vis-a-vis the objectives of research.AMAIMar 308 A Exhibit 1 Indian Products Limited (A) Important Attributes/Consumer Benefits Sought by Consumers in Refined Oils and ‘Those which could be Provided by Sunflower/Corn Taste 2. Good for Health 3. Energy and Nutrition 4, Easy Digestibility 5. Purity 6 Colour 7. Odour 8. Keepability of good 9. Economical in usage ‘The attribute economical in use was not included in Tisting of concepts in Phase TIL. This was because likely prices of concepts were not known to the researchers.® 6 TIMAIMar 303 Exhibit 2 Indian Products Limited (A) Questionnaire for Consumer Research Dear Madam, We are students of the Indian Institute of Management, Ahmedabad. We are conducting a survey related t0 cooking oils and fats. For this purpose, we would like you to spare a few minutes and share your views with us. ‘Thank you, Q.1 What cooking medium(s) do you use? (Hand Card A to obtain response) 1 Pure Ghee 2 Butter 3 Vanaspati 4 Flavoured Oil 5 Refined Oil - Loose 6 Refined Oil - Packed Tin . (if ansWeFTS Q.1 does not include "Refined Oil - Packed Tin” then go to Q.2, else proceed © Q3). Q.2 Have you used "Packed Refined Oil” in the past? 1 Yes A No (Uf answer to Q.2 is ‘yes’ proceed to Q.3, else thank the respondent and terminate the interview). 3. Which brand of refined oil are you using at present? (Show Card B) 1 Postman 2 Dalda Refined Oil a Gotdnut 4 Saffola 5 Godrej 6 Any other (Please specify) Q.3b. Which brands of refined oil have you used in the past? (Refer Card B) 1 Postman Dalda Refined Oil Goldnut Saffola Godrej Any other (Please specify) aunUMAIar 303 7 Q.3c. What pack sizes of Refined Oil are you using? (Show Card C) Q4 Some housewives havi QS We would like to know your views about___ 1 16 Kg, 2 4 Ke 3 2Kg 4 1 Kg dicated that while buying refined oil they consider the following features. Could you kindly indicate how important each of these features is 10 you. (Give Rank 1 to most important feature, Rank 2 to next most important feature and so on) (Show Card D) 1 Taste 2 [| Good for health 3 Energy and Nutrition 4 Digestibitity 5 Purity 6 Colour 7 Odour 8 Keepability of food (mention current brand indicated in Q.3a) on the features listed in Card (Explain the scale: For each feature, there are two extreme opposite responses. If you agree very strongly with the response on the left side give a rating of 5. If you agree strongly with the response on the left side give a rating of 4. If you are neutral, between the two extremes, give a rating of 3. If you agree strongly with the response on the right side give the rating of 2. If you agree very strongly with the response on the right side give the rating of 1. Overall Good Oi 5 4 3 2 41 Overall Bad Oi 1. Very Tasty Bad Taste 2. Good for health Bad for eat 3. Nutritious Not tritous 4. Easily Digestible trout to 5. Pure ot pute 6. Nice Colour TT unesirabte Cotour 7. Pleasant Odour Unpteasant odour 8, Food stays long Roo does not stay ongQ6 Qr Qs Qa Q9b UMAMar 303 Would you like to mention any other likes/dislikes regarding __ (Mention current brand as indicated in Q.3a) Why do you use the current brand? Please indicate the most appropriate statement from this card. (Show Card F) 4 ‘This is exactly the product T have always wanted to 3 ‘This is the best available brand 2 Iis a force of habit 1 ‘There is really no choice If your favorite brand is not available with the store where you usually make your purchases, most probably what will be your response? Please indicate the most appropriate statement on this card, (Show Card G). 4 I will look at other stores until 1 find the brand 3 [| Twill wait il this brand comes to my store 2 1 will look at one or two other stores and buy the available one 1 1 will buy another brand from the same store Now we would like to know your views about some other brands of refined oil. (Ascertain views about the three brands not used in Q.5. Present Cards B,, B;, Bs, B, for brands one by ‘one for this, and Card E for the Scale. If Respondent is not aware of these brands present appropriate card containing the brand sales story. Using this information, please fill up the table below), A leading refined oil company is planning to introduce some new types of refined oil. We would like you to get your views regarding these different types of refined oils. Show Card P,, P,, P,, P, for altemate concepts and Card E for the scale, Using this information, please fill up the table below), Overall Rating B, | By | Ba | Pi 1, Taste 2. Health 3. Energy and Nutrition |. Digestibility . Purity Odour 5, 6. Colour i] 8, Food Stays longHIMAIMar 303 9 Q.10 Quy Qi QB What do you think are the main advantages/disadvantages or important features of these new product concepts. (Show Cards P;, P,, P,, P, again and record the response verbatim, Prompt if necessary.) Concepts Remarks Which statement on this card comes closest to your opinion of this product compared to other brands of refined oils you have used or heard about and also the new products we have just talked about? (Present Cards ) and P,. Similarly present Card P,, Ps, Py, one after the oiher. Pr | Ps | Pe 1. ‘There are other refined oils which are exactly the same as this product, 2. ‘There are other refined oils which are almost similar to this one, 3. ‘There are other refined oils which are somewhat similar but not really the same as this one. 4, This refined oil is quite different from current refined oils. Here are some statements listed in this card, Which is the statement that comes closest to your idea of this product? (Present Card J and also P,) Present P;, Ps, P, also one after the other) Ps | Ps | Pe 1. __ This product is impossible 2, __ May be its possible but does not sound very real 3. It should be possible for a good company to manufacture this product 4. This product is definitely possible 5. Such a product already exists Please tell me which of the statements listed in this Card comes closest to describing how you feel about buying this product if it were available at your nearest store (Show Card K and Card P,, Also show Cards P,, P3 and P, one after the other). ~ sy |10 MMAIMar 303 1. I definitely would not buy it 2, L most probably would not buy it 3. Lmight or might not buy it 4, I would most probably buy it 5. I definitely would buy it Qld fa. Age b. Occupation e. Community | d, Education 1. Below 25 yrs. 1, Social work 1. North 1. High School & below 2. 26-35 years 2. Family Business _|2. South 2. Graduation j 3. 36-45 years 3. Working outside | 3. East 3. Post-Graduation & above 4, 46-55 years 4, House wife 4, West 4, Refuse to answer 5. Above 55 years 6. Refuse to answer Thank you. Interviewer: Be sure to collect all the cards and pencil before leaving the household. Interview conducted by: on date, _____ atime. Respondent: Name: Address: CASES IAL Lucinon