Published on March 2, 2014
-1- Project Pure A Business Research Proposal 12/9/2013 Parry Sugar Industries India Limited Group 7_Section B
-2- Table of Contents Sl No 1 2 3 4 5 6 7 8 9 10 Content Introduction Objective Desk Research Qualitative Research Quantitative Research Reporting Timing Fees Credentials Annexure Page 3 4 5 7 10 13 14 15 16 17
-3- Introduction About the Company Parrys Sugar Industries Limited is one of the most progressive companies of Indian sugar industry. Indian sugar industry is the 2nd largest agro-industry with approximately 50 million sugarcane farmers and a large number of agricultural labourers (7.5% of the rural population) involved in sugarcane cultivation and ancillary activities. Though consumption of sugar in India has been growing at a steady rate of 3%, and is currently at 23.1 million tonnes, per capita consumption at 18 Kg (lower than world average of 22 Kg) indicates potential upside from a demand standpoint Parrys sugar Industries Limited is a child company of Murugappa group. Murugappa group was formed by Dewan Bahadur A M Murugappa Chettiar, a visionary entrepreneur in the year 1900. Headquartered in Chennai, the INR 225 Billion Murugappa Group is one of India's leading business conglomerates. Sugar Industry in India In India 50 percentage of the sugar production is controlled by public and cooperative sector mills. There are around 566 sugar mills in India out of which almost 100 are non-operational. Maharashtra state constitutes 50% of the sugar production. Sub- Tropical zones Uttar Pradesh (UP) Uttaranchal Bihar Punjab Haryana Tropical zones Maharashtra Andhra Pradesh (AP) Tamil Nadu (TN) Gujarat Karnataka
-4- Objective Our objective is to find which advertising campaign Parrys should go for. We will take into consideration the cost associated with advertising campaigns along with the views of consumers from various sectors like house-holds, working class, government agencies and distributers. Findings of both Qualitative analysis as well as Quantitative analysis will be used in taking a decision as to which advertising campaign will be beneficial for Parrys Sugar industries limited.
-5- Desk Research Purpose Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. However, it could also be a complete waste of time and money if the researcher does not have the proper knowledge of how the research in performed. Desk research is very effective and can be conducted in starting phase of market research as it is quite quick and cheap and most of the basic information could be easily fetched which can be used as benchmark in the research process. Procedure There are basically two types of desk research techniques. 1. Internal Desk Research Much Information could be generated internally within the organization as a course of normal process. Account related information which indicates what type of products are sold, in how much quantity and at what cost, sold to which type of customers including their geographical location and so on. The sales team will be having access to the information about the domestic market place, various distribution channels, and periodic demand at those distributive centres, cost of logistics, consumer buying patterns, complaints and suggestions if any. Thus, they will be a major part of the internal desk research. 2. External Desk Research External Desk Research involves research done outside the organizational boundaries and collecting relevant information. a. Online Desk Research: There is incredible amount of data available online on internet. There could be two approaches, one is directly browsing the specific information from industrial, marketing or business sites and extracting the information out of these sites. These sites could be www.economictimes.indiatimes.com, www.moneycontrol.com, in.reuters.com/finance/stocks, etc. Secondly, using the various search engines like www.infoseek.go.com,
-6- www.altavista.com, etc, for modulated searching. The important aspect here is to refine the searching techniques in such a way that results are promising and relevant. For this it is necessary for the researcher to know the importance of the research and follow the guideline intellectually to reduce the efforts made and time consumed in searching. b. Government published data: Government usually publishes a great extent of data online that can be used in the research process that is related to not only the annual demand, production, consumption and price but also to the social, financial and economic aspects. The government websites are mostly free to access and contains most prominent information which could be the cheapest medium of gathering the information. Data from Indian Sugar Mills Association, data from the Indian Council of Agricultural Research (ICAR) that conducts sugarcane research and development at the national level, data from the GAIN(Global Alliance for Improved Nutrition) report, the establishment of a minimum support price (MSP) for sugarcane on the basis of recommendations by the Commission for Agricultural Costs and Prices (CACP) can all be used to find information about the sugar production, consumption and utilization in India. c. Customer desk research: One of the best and most prominent ways of extracting information for research is directly communicating with existing or prospect customer. Customers are the one who are considered the most informed as they are actually using products and services and are aware of the current market trends more than any other. Hence the feedback and information provided by customers is the most accurate and useful data which can be used most effectively in the further process of research. The desk research will be able to help us in establishing the following: 1. What quantity is purchased? 2. What prices are charged? 3. Who should be the target audience – according to the age groups, income groups, family sizes, etc? 4. Where did they buy it? 5. How loyal are the customers to the brand? 6. What is their satisfaction level? 7. What expectations do they have from the brand? 8. What are their complaints and suggestions?
-7- Qualitative Research Purpose Qualitative research is a method of inquiry employed in many different academic disciplines, traditionally in the social sciences, but also in market research and further contexts. Qualitative researchers aim to gather an in-depth understanding of human behaviour and the reasons that govern such behaviour. The qualitative method investigates the why and how of decision making, not just what, where, when. Hence, smaller but focused samples are more often needed, rather than large samples. Population & sampling We will take a sample from the population, measure characteristic on each of the sampled units, and use this information to estimate (infer) the characteristic in the entire population. Parry can classify the population based on Income group, working & non working sector, buying behaviour (i.e. people buying at department stores/supermarkets/Hypermarkets) Procedure Qualitative researchers may use different approaches in collecting data; Forms of the data collected can include interviews and group discussions, observation and reflection field notes, various texts, pictures, and other materials. 1. Focus Group Discussions: The focus group technique involves a moderator facilitating a small group discussion between selected individuals on a particular topic. This is a particularly popular method in market research and testing new initiatives with users/workers. Using this technique we can know about their perception, opinion, belief, and attitude towards a product, service, concept, advertisement, idea, or packaging. For focus group, Parrys can call people from working sector (men and women both), non working sector (women especially), distributors, restaurant chain owners, government canteen/Corporate pantry supervisors. Two rounds of focus group with 8-10 people can be arranged in metros like Mumbai, Delhi, Chennai,
-8- Kolkata and the major cities like Bangalore, Ahmadabad in order to get more appropriate data. 2. Face to Face Interview: Research technique conducted in person in the field by a trained interviewer for the purpose of learning the motivation of consumers in the purchase decision process. In the unstructured home environment, the interviewer interacts with respondents and encourages them (usually in a one-on-one situation) to freely express their opinions, ideas, feelings, thoughts, and attitudes. The objective is to go beyond the superficial and to probe into consumer behaviour. Depth interviews, along with focus group interviews, are helpful in the evaluation of consumer reaction to a product. Parry can make use of “In-depth interview” using set of standard questions the sample questionnaire can be referred in Annexure I. 3. Projective Techniques: Projective techniques are used in qualitative marketing research, to help identify potential associations between brand images and the emotions they may provoke. In advertising, projective tests are used to evaluate responses to advertisements. The tests have also been used in management to assess achievement motivation and other drives, the application of responses is different in these disciplines than in psychology, and the responses of multiple respondents are grouped together for analysis by the organisation commissioning the research, rather than interpreting the meaning of the responses given by a single subject. Brand Personification: If Parry was a person, what characteristics would you attribute to it? _________________________________ Parry can judge brand loyalty & emotional connect using the personification techniques. Sentence completion: Parry: Sugar :: Sweet : _____________________ Story completion: It’s Chintu’s birthday today and his mom is planning to prepare homemade cake for her dearest, she bought almost everything right from chocolates, cream,
-9- floor, essence & she forgot to bring the main ingredient. She asked her elder daughter to bring it, what it would be? ______________________________________ Construction Technique: “Diwali is on the doors, let’s make sweets _____________________________________
- 10 - Quantitative Research Purpose This is a type of educational research in which the researcher decides what to study; asks specific, narrow questions; collects quantifiable data from participants; analyzes these numbers using statistics; and conducts the inquiry in an unbiased, objective manner. Quantitative research is research that uses numerical analysis. In essence, this approach reduces the data into numbers. This stage aims to identify how many households are using Parrys sugar while its competitors like Satin sugar, Imperial sugar, Baajhind. Households generally have tendency to buy sugar readily available at General stores. We would find out how many people are aware of this brand. We will present the data regarding opinion of people towards this brand. We will try to find out how Parrys would enhance its sale with proper advertising. Quantitative research is generally done using scientific methods, which includes the following steps: Developing models, theories, and hypotheses of what the researcher expects to find. Developing instruments and methods for measuring the data. Experimental control and manipulation of variables. Collecting the data. Modelling and analyzing the data. Evaluating the results. Characteristics • An emphasis on collecting and analyzing information in the form of numbers • An emphasis on collecting scores that measure distinct attributes of individuals and organizations • An emphasis on the procedures of comparing groups or relating factors about individuals or groups in experiments, correlation studies, and surveys
- 11 - Population & Sampling • Profile of sample This study focused mainly on population of Households, Retail stores Hotel industry and Office Canteens as they are the major prospective customers of Parrys Sugar. • Size of population The population size include 1200 household customers selected randomly at places like retail stores, super markets and hypermarkets while purchasing sugar, age between 25 – 55. To know the sales cycle of Finished Goods and purchase behaviour of customers we chose 220 retail stores. To understand the bulk purchase behaviour we will survey 80 hotels and 50 office canteens. • Place Subjects are selected among four metros i.e. Delhi, Mumbai, Chennai and Kolkata and two non-metros i.e. Bangalore, Ahmadabad. The subject distribution among various cities is shown as follows: Metro Households per city Retail Stores Hotel Industry Office Canteens • 100 150 50 Non Metro 100 70 30 50 Duration Duration required to perform the quantitative research will require around 4 weeks. Convenience Sampling 15% Simple Random Sampling 25% Systematic Sampling 60% (Diagram: Sampling Distribution)
- 12 - Procedure The survey will be basically conducted through two different medium, viz, 1. Telephonic Survey 2. Customer Survey Households will be surveyed at the purchasing place then and there by the salesperson present at the store and by the marketing representative of the company. They will be provided with a sample questionnaire (Annexure I), which contains a set of close ended questions which will project information about the customer purchasing behaviour, brand image, segmentations, expectations etc. Purchase department head of around 20 Super markets, departmental stores in each metro and 15 numbers in each non-metro will be surveyed through telephonic surveys. And around 110 kirana store owners are surveyed through a set of Questionnaire (Annexure II). This can give us an idea about customer behaviour, demand and supply cycle, customer satisfaction levels, inventory movement etc. Purchase department head of hotels and office canteens are surveyed through telephone calls and asked a set of questionnaire (Annexure III). We can target B2B customers on the basis of information that we get. Survey is done on around 80 hotels and 50 office canteens. The set of questionnaire is developed so as to probe the following aspects: What kind of sugar is generally used? What other kinds of sugar are the households are aware of? Which groups of people are most likely to use high quality sugar? What quantities are they likely to buy? Are they prepared to pay more for domestic consumption of sugar? What do they expect from Parrys? What will the basis of our segmentation? When required, the questions will be pre-coded during the telephonic survey and it will last for around 10 minutes. Analysis The analysis will involve computer tabulation, in the form of frequency distribution. Different data from different customers will be compiled and analysed together by hypothesis testing using ANOVA. Wherever required, Weightage will be assigned to different variables of the dataset. Using these results various parameters regarding the brand are evaluated and analysed.
- 13 - Reporting Reporting will performed in 2 parts. The first part would include the findings from Qualitative research analysis and the second part would include the findings from Quantitative research analysis, subsequently the data obtained should be analysed. This will be followed by meeting with the Parrys to discuss the next stage of the research. All the tabulation and findings will be drawn in the form of a PowerPoint outline. Once it is approved the formal presentation will be prepared and conclusions will be drawn.
- 14 - Timing The table below indicates our suggested timeframe for the project. This meets the deadlines set out in brief. When the project is underway, we will send daily as well as weekly progress reports in the form of emails. The daily reports will be sent at 6pm every day and the weekly report will be sent at 12 noon every Friday. Thus, the days and weeks work can be summarized and modifications or suggestions if any can be implemented. No of Days 3 5 2 1 2 1 3 2 3 2 1 25 Activity Desk research Qualitative fieldwork Qualitative/Desk research report available Questionnaire development Pilot (n=250) Pilot debriefing Quantitative Stage Coding and data preparation Analysis Presentation Final Report Available Total No of Days
- 15 - Fees The fees quoted below are exclusive of VAT and are subject to the standard terms and conditions, which are appended. The fees are subject to the assumptions contained in these proposal and we reserve the right to make adjustments should any assumptions proved to be incorrect. The detailed cost breakup is provided below (Annexure IV). Phase Desk Research Qualitative Research Quantitative Research Total Fee Fees (in Rs) 6,000 4,90,000 59,400 5,55,400
- 16 - CREDENTIALS The project will be carried out by the Research division of ABC Ltd, led by its director, Mr. XYZ , who has worked in the field of market research for many years. He has specialized in the field of marketing and holds an MBA from IIM-A and has got about 30 years of experience with many leading research agencies in the world. He will be assisted in his work by a team of capable analysts and an geographical operational head from the company. Quality Control All the interviewers are trained and supervised. We check 20 percent of the interviews: in person, by telephone or by post. All the fieldwork adheres to the industry standards.
- 17 - Annexure I Sample Questionnaire for Households 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. How many people do you have in your family? What is your income level? a. Less than Rs 1 Lakhs b. Rs 1 lakhs - Rs 3 lakhs c. Rs 3 lakhs – Rs 6 lakhs d. Rs 6 lakhs and more Approximately, what amount of sugar do you consume monthly? How many times in a month do you purchase sugar? From where do you purchase sugar often? a. Grocery Store b. Super Market c. Hyper Market d. Departmental Store e. Ration Store f. Online Stores(BigBasket, KitchenofIndia etc) What form of packaging do you prefer while buying? a. Loose packaging b. Store packaging c. Company packaging How much amount of sugar do you buy at one time? Which are the factors do you consider while buying sugar? a. Quality b. Price c. Brand d. Packaging e. Availability Are you aware of the brand Parrys? Have you ever tried Parrys Sugar? If Yes, a. How often do you buy the brand? b. Why do you use Parrys Sugar? i. Brand Image ii. Price iii. Quality iv. Trust v. Packaging c. How do you rate the brand in a scale of 1 to 5 (5 being the highest)? If no, a. Are you planning to use Parrys? b. Why will you use Parrys Sugar? i. Brand Image ii. Price iii. Quality iv. Trust v. Packaging I would use Parrys Sugar again ………………………………………………
- 18 - a. Definitely b. Probably c. Not so sure d. Never 14. Does any member of your family suffer from Diabetes or any other sugar related diseases? 15. If yes, which sugar do you use for them? a. Normal sugar b. Medicated sugar c. Alternative sweeteners 16. If you use normal sugar, would you like to use Parrys Medicated Sugar?
- 19 - Annexure II Sample Questionnaire for Retailers 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. Name of the shop/outlet : Address/Location: Type of outlet: a. General Shop b. Grocery Store c. Super market d. Hypermarkets Which brands of sugar do you deal in? a. Loose packaging b. Store packaging c. Company packaging Which brand of sugar do the customers ask for? How many kgs of sugar on an average do you sell every day? Do you sell Parry’s sugar? Yes No If yes, how many kgs of Parry’s sugar on an average do you sell everyday? How much amount of sugar do you stock in the shop? a. Less than 20 kg b. 20 – 30 kgs c. 40-50 – kgs d. More than 50 kgs Which are the factors that customers consider while buying sugar? a. Quality b. Price c. Brand d. Packaging e. Availability What other brands are strong competitors to Parry’s sugar? I would sell Parry’s Sugar again ……………………………………………… a. Definitely b. Probably c. Never Along with which products are Parry’s sugar placed on the shelves. Do customers who are cost sensitive purchase Parry’s sugar? What kind of promotional activities affect sale mostly? a. Discount b. Free gifts c. Bottled sugar (Free bottle) What age groups of the population prefer Parry’s sugar? a. Between 20-30 b. Between 30-40 c. Greater than 40
- 20 - Annexure III Sample Questionnaire for Hotels and Canteens 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Name of the shop/outlet : Address/Location: How many transactions occur in a day? a. Less than 1000 b. 1000 – 2000 c. 2000 – 3500 d. More than 3500 Approximately, what amount of sugar do you consume monthly? From where do you purchase sugar often? a. Wholesaler b. Company Godowns / Warehouse c. Hypermarket How many times in a month do you purchase sugar? What form of packaging do you prefer while buying? a. Loose packaging b. Store packaging c. Company packaging How much amount of sugar do you buy at one time? a. Less than 100 kg b. 100 – 200 kgs c. 200 – 400 kgs d. More than 400 kgs Are you aware of the brand Parrys? Have you ever tried Parrys Sugar? If Yes, (Both aware and tried) a. How often do you buy the brand? b. Why do you use Parrys Sugar? i. Brand Image ii. Price iii. Quality iv. Trust v. Packaging c. How do you rate the brand in a scale of 1 to 5 (5 being the highest)? If no, (Aware but not tried) a. Are you planning to use Parrys Sugar? b. Why did you not use Parrys Sugar? i. Brand Image ii. Price iii. Quality iv. Trust v. Packaging I would use Parrys Sugar ……………………………………………… a. Definitely b. Probably c. Not so sure d. Never
- 21 - Annexure IV The total cost structure can be decoded as follows Executive fees for conducting the desk research for accessing to relevant data and reports and analysing them is Rs 6,000. Focus Group Interview: In each city, two focus group interviews will be conducted. The total cost will be In metros, In non-metros Rs 40000 X 2 X 4 = Rs 3,20,000 Rs 30000 X 2 X 2 = Rs 1,20,000 Total = Rs 4,40,000 Face to Face Interview: In each city, 50 face to face interviews will be conducted. The total cost will be In metros, In non-metros, Rs 175 X 4 X 50 = Rs 35,000 Rs 150 X 2 X 50 = Rs 15,000 Total = Rs 50,000 Telephone expenses during the telephonic surveys can be estimated to a total of Rs 4,000. For direct customer survey, a nominal fee of Rs 50 for each survey form will be paid to the salesperson at the store and the market representative at the retail stores. The total cost will be For households, For retail stores, Rs 40 X 1200 = Rs 48,000 Rs 40 X 110 = Rs 4,400 Total = Rs 52,400 Executive fees for conducting the quantitative analysis using computer software, doing tabulation and analysing them is Rs 3,000.
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