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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 the total 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 there was an opportunity for new brand in the

    SPRO market

    If yes, determine thebest product concept in terms of consumer appeal / 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 Sunflower oil. With high poly unsaturated fatty acids, it keeps your family healthy and active all through

    the day.

    • P2-  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.

    SUNFLOWER REFINED OIL 

    • P3- Corn is high in proteins.

    Use rich golden colourrefined corn oil for energy and nutrition.

    • P4-  We all like food that is

    tasty and keeps the family healthy and fit. Refined corn oil, popular all over the world, provides fitness and taste—Just like ‘makai ki

    roti’ !

    CORN REFINED 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 was the best among the available brands.

    – Only 4% of the respondents were satisfied with the current brand they were using.

    • Possibility of launching a new brand to satisfy remaining 60% respondents – A large market potential

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    um er o oo ng e ums Used

    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 a new brand.

     This provided enough confidence about good

    prospects for a new brand.

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    Rank of each of the 8 attributes/benefits in buying refined oil

    Rating of each brand used and each product 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 a median 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 1.565 Colour 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 were assessed as important attributes.

     Odour  - assessed as an important

    attribute through Ratings approach

    whereas it was not considered important according 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 Relationship between 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 the researchers 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 uniqueness and believability

     Uniqueness and believability had high negative correlation that is

    more the uniqueness in the product, le