Download - IPL CASE C&D
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Indian Products
Limited (C&D)
Submitted to:
Prof. Bhalendar Nayyar
By Group 9:
Aayushi Singh (221002)
Anvesh Reddy(221032) Akul Sharma(221015)
Dev Sharma(221040)
Divya Sharma (221043)
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Cooking Medium Market ::
Background
The total cooking medium market was 50,00,000 tons
Refined oils accounted for 2% of the total cooking medium tonnage or 3% of thetotal cooking oil tonnage, i.e., 1 lakh tons
SPRO’s had a market share of only 0.3-0.5% of the total cooking medium tonnage
Bulk packs commanded major portion
SPRO market - either stagnant or declining
Increase in non groundnut oil brands
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BACKGROUND
12%
16%
72%
Market Share (%)
Ghee and Butter
Vanaspati
Oils
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IPL Market Research
Objectives
Assess whether therewas an opportunityfor new brand in the
SPRO market
If yes, determine thebest product conceptin terms of consumerappeal / acceptance
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• To launch a non- groundnut oil in the SPRO market.
• Considered Options :Corn oil and Sunflower oil.
• The research conducted in three phases :
Phase 1 : Determining Attributes for Product Concepts
Phase 2 : Generate Concept Statements
Phase 3 : Administer Questionnaire
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Attributes Identified :
Corn Oil
• Colour
• Taste/Flavour
•Energy & Nutrition• General Fitness
Sunflower Oil
• Easy Digestibility
• Energy & Nutrition
•General Fitness• Economy in Use
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The Product Concepts• P1- For general fitness and
easy digestibility, eat foodcooked in refined Sunfloweroil. With high poly unsaturatedfatty acids, it keeps your familyhealthy and active all through
the day.
• P2- And now! Fry twice thenumber of puris in lesseramount of oil. Brand ‘X’ of
refined sunflower oil cooksmore food in less oil. Andfastly too! Save money. Use thisoil.
SUNFLOWERREFINED OIL
• P3- Corn is high in proteins.
Use rich golden colourrefined corn oil for energyand nutrition.
• P4- We all like food that is
tasty and keeps the familyhealthy and fit. Refined cornoil, popular all over theworld, provides fitness andtaste—Just like ‘makai ki
roti’ !
CORNREFINED OIL
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Information Collected
• Current and past usership of cooking
medium and different brands
• Reasons for use & extent of brand loyalty
• Ranking of attributes
• Ratings of overall assessment
• Uniqueness, believability & buying intention• Classification data of respondent
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Methodology
• Scaling method-
Ranking- Done on attributes;
on product concepts on the basis of 4 variables
-Rank Order in Comparative-Continuous Rating Scale in Non Comparative
Ordinal : To Measure product attributes
Interval : For Overall evaluation of product concepts
• Measures of Central Tendency -Mean, median, mode – used for ranking
• Regression Analysis- Bivariate and multivariate
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Reason for using the current brand
Use of multiple cooking medium
Use of multiple SPRO brands
Brand loyalty status
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Reasons for Using the Current Brand
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Analysis
• 64% of the respondents made choice other than “Force of Habit”.
– 12% responded that they had no choice.
– 48% responded that the brand they were using wasthe best among the available brands.
– Only 4% of the respondents were satisfied with thecurrent brand they were using.
• Possibility of launching a new brand to satisfyremaining 60% respondents – A large market potential
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um er o oo ng e umsUsed
It can thus be inferred that introducing
another cooking medium would not be difficult
in the kitchens of SPRO Consumers
30%
78%
100% 100%
Four or more Three or more Two or more One or more
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Number of Refined Oil Brands
Used
74% of current SPRO users would not mind using anotherbrand while 32% would readily welcome another brand.
The new brand would not face difficulties from larger
proportion of SPRO users.
4%
32%
74%
100%
Four or more Three or more Two or more One or more
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Brand Loyalty Status
70% were found to have a low loyalty which favored anew brand.
This provided enough confidence about good
prospects for a new brand.
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Rank of each of the 8 attributes/benefitsin buying refined oil
Rating of each brand used and eachproduct concept tested on – overall basis& -each of the 8 attributes/benefits
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On the Basis of Rank
• The respondents were asked to rank the following 8 attributes and
their median ranks were calculated.
Taste
Health
Nutrition
Digestibility
Purity
Color
Odour
Keepability of Goods
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Attribute Importance
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• 50% of the respondents gave rank 1, 2 or 3 to
taste.
• 60% of the respondents gave rank 1 or 2 to Health.
• 56% of the respondents gave rank 1 or 2 to purity.
o On the basis of the ranks - two attributes which are
important are health, purity and taste with amedian rank of 2, 2 and 3 respectively
oMedian Rank equal to or above 4 not considered
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On The Basis Of Ratings
Multiple Regression Analysis• Overall Rating - Dependent Variable• Ratings on Eight Attributes - Independent Variables.
• Those attributes with a very low regression coefficient
were not considered as important.• According to this analysis, the attributes which were
considered important were : Taste, Health, Odour and
Purity.
Y(Overall rating) = 0.02325 + 0.231(Taste) + 0.280(Health) +0.185 (Odor) + 0.112(Purity) + 0.08(Digestion) + 0.078
(Color) + 0.028 (Keepability) + .010(Nutrition)
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On The Basis Of Ratings
H0 : The given factors have no impact on the overall rating
H1 : The given factors have impact on the overall rating
LEVEL OF SIGNIFICANCE : 5% , Tcri 1.96
Variable Regression
Coefficient
Standard Error T – Value
Taste 0.23148 0.04970 4.658
Health 0.28034 0.06252 4.484
Odour 0.18512 0.06211 2.980
Purity 0.11230 0.05381 2.087
Digestion 0.08019 0.05123 1.565Colour 0.07846 0.05597 1.402
Keep Ability 0.02801 0.05319 0.527
Nutrition 0.01001 0.06084 0.164
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Important Attributes
Health, Taste and Purity wereassessed as important attributes.
Odour - assessed as an important
attribute through Ratings approach
whereas it was not considered importantaccording to the Rankings approach.
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The overall evaluation of customer
acceptance of the four product concepts
involves four measures :
Overall Rating
Buying Intention
Uniqueness
Believability
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Analysis for selecting appropriate
Product Concept :
1
• Understand the Relationshipbetween the four overall measures
2• Ranking of Product Concepts
3• Selecting the Best Concept
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Variables were measured on interval scale which enabled theresearchers to obtain correlation between them
High positive correlation between overall rating and buying intention
meant that if overall rating was high then buying intention would also
be high but buying intention was not affected much by uniquenessand believability
Uniqueness and believability had high negative correlation that is
more the uniqueness in the product, less will be its believability
Hence , Buying Intention was a dependent variable and
Uniqueness, Believability And Overall Rating were independent
variables
Relationship Between 4
Variables
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Ranking Product
Concepts
OVERALL RATING BUYING
INTENTION BELIEVABILITY UNIQUENESS
P4 3.69 3.34 3.5 3.16 P1 3.47 3.28 3.48 2.28
P3 3.18 3.13 3.62 3.2 P2 3.02 2.98 3.08 3.02
Ranking of product concepts was done on the basis of measure of centraltendency (mean) and then differences in mean calculated for 2 favorable product
concepts P1 and P4
Product concepts (P1, P2, P3, P4) were ranked as per their mean score
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I. P2 was ranked lowest on overall rating, buying intention,
believability and 2nd lowest on uniqueness. P2 was
dropped.
II. P3 lowest on overall rating and buying intention, but
ranked top on believability and uniqueness. Dropped as
low on important attributes.
III. P4 was ranked 1st in overall rating and buying intention;
2nd in believability and uniqueness. It was thus
considered to be favorable for further consideration.
IV. P1 close to P4 on all attributes except uniqueness. Taken
up for further consideration.
Selecting the Best
Product Concept
A i C titi P iti
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Assessing Competitive Position
of Product Concepts
• Usage of two techniques:
– Mean Rating Approach
– MDS(Multi Dimensional S Calling) Approach
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Mean Rating Approach
• Mean ratings of 2existing brands and 4
product concepts on 8attributes and overallbasis
• 23 respondents
• P4’s overall rating
same as Postman andP1’s overall ratingsame as Saffola
MDS Approach
• Same data processed
• 2 dimensional map
obtained
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Identification of Axis
P t l M f
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High Taste & General
Purpose
Low Taste & Special
Purpose
Therapeutic/Medicinal General Health/Nutritious
Saffola
Postman
P1
P2
P4
P3
Perceptual Map of
Existing Brands and New Product
Concepts
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• Concept P1 is perceived as a product that ismore towards serving special purpose and
low taste
• Concept P2 is perceived as a morenutritious product
• Concepts P3 & P4 are perceived as products
having nutritional value and moderatelytastier than other products
Perceptual map indicating concept
factors based on benefits
indicates:
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• It is recommended to introduce a new brand ofSPRO
• Concepts P1 and P4 offer maximum promise
• For P1, demand assessment exercise suggested, Iffound sufficient inspite of Saffola’s presence, go
ahead with the concept
• For P4, stronger taste rationale, to compete with
Postman effectively
• Product test using Corn Oil suggested
Recommendations