Perception of a Biscuit Brand in

Indian market

Business Research Project

Submitted to: Dr. Mona Verma

Submitted by:
Nishant Bhati 15101
Nikhil Anand 15099

1|BR Project
 INDEX

Acknowledgement 3
Introduction - Background 4
Problem Statement 7
Research Methodology 9
Results and Discussions 13
Factor Analysis 20
Bibliography 34
Annexure 35

2|BR Project
 Acknowledgement

The report and analysis details which are being presented here are a fruitful
effort of many unseen hands that had continuously been a guiding force in
all conditions.

We, students of BMS 2C of SSCBS express my deep sense of gratitude and

we would like to thank Shaheed Sukhdev College of Business Studies,
University of Delhi, for giving us the opportunity of working on this project
and giving us the required knowledge in the field of Business Research
during the fourth semester of our college.

We would like to express profound gratitude to our teacher and mentor,

Dr. Mona Verma, for her invaluable support, encouragement, supervision
and useful suggestions throughout this project work. Her moral support and
continuous guidance enabled us to complete our work successfully.

Nishant Bhati & Nikhil Anand

(15101 & 15099, BMS 2C)

3|BR Project
 INTRODUCTION

Background

The Indian biscuit industry has a turnover of around Rs. 10,000 crore. India is the
second largest manufacturer of biscuits, after USA. The industry employs around
3.5 lakh people directly and around 30 lakh people indirectly. The per capita
consumption of biscuits in India is only 1.8 kg per annum as compared to 2.5 kg to
5.5 kg in the South East Asian countries, European countries and 10 kg in UK and
USA. The biscuit industry can be segmented into organized and unorganized
sectors. There are about 150 small and medium sector units besides a few large
units.

The proportion of the production in organized and unorganized sector is in the ratio
of 70to 30 per cent. Exports of biscuits have been generally to the tune of 10 per
cent of annual production (14 per cent in 2012-13). The organized biscuit
manufacturing industrys annual production figures over the past few years has
been-2008-09 - 17.50; 2009-10 - 18.50; 2010-11 - 19.00; 2011-12 - 20.50; 2012-13
- 10.50 (April to September 2012)
The industry is showing an annual growth rate of about 14 to 16 per cent since
2003. But it is still in its nascent stage when compared to the global biscuit
industry. The biscuits can be broadly classified into various categories such as
Glucose, Marie, Sweet, Salty, Cream and Milk.

4|BR Project
The bakery sector in India is estimated to be worth over 3.2 billion euros (Rs 210
billion), and is still the cheapest form of ready-to-eat food . According to Research
and Markets reports, the bakery/biscuit industry is the third-highest revenue-
generator in the processed food sector. The market size for the industry is pegged
at $5.5 billion in 2013, and is expected to reach $7.6 billion by 2015. The
unorganized sector accounts for about half the total biscuit produced in India,
which is estimated at about 1.8 million tonnes. Today, the Indian biscuit industry
has an important place in the country. Biscuits are items of mass consumption, in
view of their low prices and high nutrient values. With rapid growth and changing
eating habits of people, biscuits have gained popularity among the masses.

Over the last few years, players like Parle, Britannia and ITC have moved into the
cookie and high value segment to capitalise on the high growth and higher margins.
Even though glucose biscuits still sell much more in terms of volumes than any
other segment, its share in the overall pie has gone down. The share of glucose
biscuits has dropped from 70% to 50% in about five years.

Parle, which was dependent on the glucose segment alone with Parle G, moved
into this segment with its chocolate chip cookie brand Hide & Seek in 1996. Parle
today has close to 40% market share in the Indian biscuits segment. Britannia is a
close second with 38%.

The margins in this segment are at least 30-40% higher than in the glucose
segment, which is mainly because consumer preferences are changing. The
company's strategy was to look at the top end of the market. The average growth

5|BR Project
rate in the premium segment is over 25% today while that in the glucose segment
is about 10-12%. Consumers in India are upgrading from unbranded to low-cost
branded products to higher value products today as a result of higher disposable
incomes. With companies looking at selling their higher value products in smaller
packs, adoption as improved.

Organized Sector - Main Players

Parle

Products: Parle G, Monaco, Hide and Seek, Gold Star, KrackJack, Golden
Arcs, Milano.

Britannia

Products: Tiger, Good Day, Nice Time, Treat, 50-50, Little hearts, Bourbon.

ITC

Products: Sunfeast- Farmlite, Dark Fantasy, Delishus, Mom's Magic, Dream

Cream.

6|BR Project
 Problem Statement

As the biscuit market is highly competitive, different players have adopted different
strategies to cater to their target segment. Parle (Kreams), Britannia (Treat and
Tiger) and ITC (Dark Fantasy and Dream cream) with its wide series of cream
biscuits are scrupulously attracting customers in order to acquire a prominent
market share.

Purpose of the research:

There are certain biscuit products which most consumers prefer because of their
taste, prices and health factors. A market research has to be carried out to study
the consumer purchasing behavior, perception, and preferences of Biscuit products
and the different factors affecting their purchase decision.

Objectives of the Study:

We will be collating and quantitatively analyzing the data collected with which a
conclusion will be formed regarding the following objectives:

Determining consumer preferences among various biscuit brands/products.

Determining the purchasing pattern of the consumers on the basis of their

taste and preferences towards different biscuit brands identifying various
purchasing criterion of the consumers and their relative importance.
7|BR Project

Identify various factors that influence consumers preferences.

To identify the possibility of a new entrant in a highly competitive market along

with the promotion technique to be adopted (if there is a possibility).

8|BR Project
 Research Methodology

Following research methodology was adopted for the accomplishment of the

assigned objectives.

Research Design

A DESCRIPTIVE RESEARCH would be conducted for the motive of accomplishing

the above PURPOSE and achieving the in-line OBJECTIVES of knowing and
understanding the consumer preferences, perception and purchasing criterion.

Descriptive research design is a scientific method which involves observing and

describing the behavior of a subject without influencing it in any way.

The idea behind this type of research is to study frequencies, averages, and other
statistical calculations. Although this research is highly accurate, it does not gather
the causes behind a situation.

Descriptive research is mainly done when a researcher wants to gain a better

understanding of a specific topic. It usually involves gathering data that describes
events and then organizes, tabulates, depicts, and describes the data collection and
hence was considered the most appropriate was the most appropriate research
design for this research. Within the various types of Descriptive Research Design,
we chose the Survey Research. We gathered information from the responses of
part of the population that was of interest to us in the study.
9|BR Project
It defines the questions, people surveyed, and the method of analysis prior to
beginning data collection. Such preparation allows one the opportunity to make
any required changes before the costly process of data collection has begun.

Data Sources

Secondary Data: The secondary data were collected from the internet and books.
Primary Data: Primary data was collected from various biscuits consumers by
conducting an online survey using a Questionnaire. The data were collected for
getting first-hand information regarding the study of consumer behavior for
purchase/consumption of biscuits keeping the tastes of consumers and possibility
of a new entrant as a major consideration.

Area of study

Region under study will be urban & semi-urban areas. Pilot testing will be first done
on Delhi & NCR.

Sampling plan

Sampling Technique: Convenience Sampling is used in the research due to its quick
and inexpensive nature.

No matter how well the research process has been designed, the persons actually
doing the work have to control of the quality of the data collected. Thus, keeping

10|BR Project
in mind the quality of the research project, the data was collected by the team
without any foreign intervention.

Sample Size: In the present research, the sample size was taken as 152.

Large sample size can yield more accurate results but it is also time consuming and
expensive. To make sample size accurate as well as less time consuming we can use
the formula.

To calculate a sample size, we need to determine a few things about the target
population and the sample:

1. Population Size how many total people fit your demographic? For
instance, if you want to know about mothers living in the US, your
population size would be the total number of mothers living in the US. It is
common for the population to be unknown or approximated.

2. Margin of Error (Confidence Interval) No sample will be perfect, so you

need to decide how much error to allow. The confidence interval
determines how much higher or lower than the population mean you are
willing to let your sample mean fall. If youve ever seen a political poll on the
news, youve seen a confidence interval. It will look something like this:
68% of voters said yes to Proposition Z, with a margin of error of +/- 5%.

11|BR Project
 3. Confidence Level How confident do you want to be that the actual mean
falls within your confidence interval? The most common confidence
intervals are 90%, 95%, and 99% confident.

Research Instrument

Data was collected with the help of a questionnaire having close-ended questions
which the respondents could fill up as per their choice. Closed-end questions
specify all the possible answers and provide answers that are easier to interpret
and tabulate. (Questionnaire in ANNEXURE)

Types of questions used in the questionnaire are:

Likert Scale

Importance Scale

Rating Scale

Dichotomous

Multiple choice

Analysis of Data

Based on the response received from respondent, appropriate statistical tools like
percentage, ranking, charts, graphs were used and inferences were made.

12|BR Project
 RESULTS AND DISCUSSIONS

Gender
This questions aims at ascertaining the number of males and females in the
respondents. The results from this questions will assist in the following questions
of this questionnaire covering different aspects.
Out of the 152 respondents, 55.9% were male respondents (85 respondents)
whereas 44.1% were female respondents (67 respondents).

Age
This question reveals the age of the respondent. This is a compulsory question
since we need to study the taste, preferences, perception and buying behavior of
people at a certain age and also the difference in all the above areas among people
of same age, a study which is very important before launching any consumable
product in a market, specially food item.
Most of the population responding to the questionnaire are between the ages of
18-35 which is desirable for this research. As a biscuit company, the target segment
of the research are the people who are conscious about their health.

Regularity in Biscuit consumption

Response to this question will tell the consistency and regularity of biscuit
consumption among consumers.

13|BR Project
Out of the 152 respondents, it was observed that 71.1% respondents (108
responses) said that they consume biscuits on a regular basis whereas only 34
respondents said that their biscuit consumption is irregular which sums up to
28.9%.

Most Regularly Consumed Biscuit Brands

Responses to this question reveals the most popular brands among the consumers
at a particular point of time.

Out of the total responses, it was observed that Britannia was the most popular
brand among consumer. It was a multiple choice question where respondents
could choose more than one option.

50.7% of the people (77 Responses) consumes Britannia at present which is the
highest. It is closely followed by ITC at 44.7% (68 responses). After ITC, it was
observed that 36.8% (56 responses) people consumes Parle biscuits. Parle is
followed by Others at 31.6% (48 responses). 22.5% (34 responses) was for
McVities.

Current status of Consumer Satisfaction

This questions asks the consumers about their current level of satisfaction from the
product they are currently consuming on a scale of one to five.

14|BR Project
This becomes a highly important question since this also tells about how vulnerable
the consumer is in terms of brand switching. If the current satisfaction is on the
lower side, they would be easily willing to switch to a newer brand.
On a scale of one to five, mostly respondents said that they were satisfied with their
current product up till five.

33.5% respondents (51 respondents) said they are satisfied up till 5 on a scale of 5
with their present product. 26.9% respondents (41 respondents) rated their
current product '4' on satisfaction. Followed by 24.3% respondents (37
respondents) who rated their current product '3' on 5 on satisfaction. 9.2%
respondents (14 respondents) rated their product 2 on 5 on current level of
satisfaction followed by 5.9% respondents (9 respondents) who rated their current
level of satisfaction at 1.

Word of mouth'
The objective behind this question was to know how much do people get affected
by word of mouth when it comes to buying a food item such as biscuit. Consumers
use word of mouth to talk about dozens of brands each day, from media and
entertainment products such as movies, TV shows, and publications to food
products, travel services, and retail stores.
It was observed that a large chunk of the population was influenced to a certain
extent by 'word of mouth'.

29.6% respondents (45 respondents) said that they got influenced by word of
mouth up till a level of 3 on a scale of 5 which was highest. 21.7% respondents (33

15|BR Project
respondents) rated their influence being 4 on a scale of 5. 19.0% respondents (29
respondents) rated their influence from word of mouth '5' on a scale of 5. 17.10%
respondents (26 respondents) said they hardly got influence and rated their
influence at 2 on a scale of 5. Only 12.5% respondents (19 respondents) said that
Word of Mouth has no influence on their decision and rated 1 on a scale of 5.

Criterion to buy biscuits

This question helps in ascertaining the criteria which consumers have in mind
while buying a pack of biscuits. Response to this question helps a potential
entrant to alter its product if the need be or place it in a better position where it
meets the criterion of the consumer.

It was observed that majority of population, while purchasing biscuits, keeps in

mind the quality and the taste rather than the pricing of the product.

40.8% respondents (62 respondents) said that their criteria for buying a pack of
biscuits is that it should taste different. It was followed by 35.5% respondents (54
respondents) whose criteria for buying biscuits was quality of the product. 11.2%
respondents out of 152 said that their purchasing criteria was that the pack of
biscuit should be inexpensive.

Time of biscuit consumption

It was observed that 78.3% respondents (119 responses) liked to have biscuits for
snacks whereas 9.2% respondents (14 responses) had biscuits in breakfast. This

16|BR Project
number is desirable for our research.

Impact of variety in a brand on buying behavior

As a rational organization, no one would be willing to launch all of its product if

the variety is not needed in the market. This questions reveals that how much
variety in a brand does affects the buying behavior of the consumer. It would also
help in formulating future strategies of this organization.

It was observed that 30.2% respondents (46 respondents) rated impact of variety
'3' on 5 stating that it had a considerable impact on their buying behavior. 28.9%
respondents (44 respondents) rated variety's impact on their buying behavior at '4'
on 5. 19.7% respondents (30 respondents) said that variety had a considerably
impact on their buying behavior and rated it 5 on 5. 12.5% respondents (19
respondents) said that variety played a pivotal role in their buying behavior and
rated it 2 on 5. Only 8.5% respondents (13 respondents) said that variety had least
impact on their buying behavior and rated it '1' out of 5.

Monthly spending on biscuits

Responses to this question will reveal the average monthly expenditure of
consumers on biscuits and will eventually help in the pricing of the product.
A major chunk of population was found to be in the interval of 10-200 when the
monthly spending on biscuits was asked.

More than half of the respondents 53.3% respondents (81 respondents) spent Rs.
0-200 on biscuits every month. 32.2% respondents (49 respondents) spent upto

17|BR Project
Rs.200-500 per month on biscuits consumptions. A small part of 11.2%
respondents (17 respondents) spent Rs.500-800 on consumption of biscuits
whereas only 3.3% respondents (5 respondents) spent above Rs.800 every month
on biscuits.

Impact of packaging on buying behavior

It was observed that packaging plays a very important role in buying behavior of the
consumers. Packaging includes all the activities of designing and producing the
container for a product. The package is the buyers first encounter with the product.
A good package draws the consumer in and encourages product choice.

In effect, they can act as five-second commercials for the product.

Packaging also affects consumers later product experiences when they go to open
the package and use the product at home. Some packages can even be attractively
displayed at home. Distinctive packaging like that for Kiwi shoe polish, Altoids
mints, and Absolut vodka is an important part of a brands equity.

32.2% respondents (49 respondents) rated the impact of packaging on buying

behavior at '4' out of 5 whereas 26.3% respondents (40 respondents) rated it at 3
which together makes almost all of the population. 16.4% respondents (25
respondents) said that packaging was not very impactful factor and rated it at '2'
on 5. 6.57% respondents (10 respondents) found packaging least impactful and
rated it '1' on 5.

18|BR Project
Brand Face

Out of the 152 respondents, 32.3% (33 respondents) think value matters a bit and
rated it 4 on a scale of 5. 27.4% (28 respondents) are neutral towards Brand Face
and are indifferent towards it whereas 21.5% (22 respondents) think that Brand
Face is the factor that matters the most and there is no bigger factor than this and
has rated Brand Face 5 out of 5. 11.7% respondents (12 respondents) said that
Brand Value is not very impactful factor and rated it at '2' on 5. 6.8% respondents
(7 respondents) found Brand Face least impactful and rated it '1' on 5.

Free Samples

Free Samples are samples that are distributed by the firm before entering the
industry or before introducing a new variety/flavor. This question was taken to see
how much the distribution of free samples affect a persons buying.

Out of the 152 respondents, 31.5% (48 respondents) are neutral towards free
samples and rated it 3 on a scale of 5. 25.6% (39 respondents) think that free
samples matter a bit and rated it 4 on a scale of 5 and whereas 20.3% (31
respondents) think that Brand Value is the factor that matters the least
and has rated Brand Value 1 out of 5. 17.1% respondents (26 respondents) said
that Brand Value is not very impactful factor and rated it at '2' on 5. 5.2%
respondents (8 respondents) found Brand Value most impactful and rated it '5' on
5.

19|BR Project
Lottery Offers

Lottery offers like scratch and win 100 Rs PaytM or IPL Tickets do not attract the
mass that much. Out of 152 respondents, 30.2%(46 respondents) majority of the
mass think that lottery offers dont affect their buying as much as other factors and
have rated it 2 on a scale of 5 whereas 23%(35 respondents) find it least affective
and has rated it 1 on 5. Moreover, 18.4% are neutral towards it and have rated it
as 3 on a scale of 5 whereas 13.8% and 14.4% have rated it 4 and 5 respectively
on a scale of 5.

Cream Vs Non Cream

Out of the 152 respondents, 8.55% (13 respondents) think Creamy are better than
non-creamy and rated it 4 on a scale of 5. 31.5% (48 respondents) are neutral
towards Creamy and Non Creamy and are indifferent towards it whereas 27.6% (42
respondents) think that Cream is the factor that matters the most and there is no
bigger factor than this and has rated Brand Value 5 out of 5. 16.4% respondents (25
respondents) said that Cream and Non Cream does not matter them and rated it at
'2' on 5. 15.7% respondents (24 respondents) found Brand Value least impactful
and rated it '1' on 5.

Number of Biscuits

Out of the 152 respondents, 26.3% (40 respondents) think value matters a bit and
rated it 4 on a scale of 5. 35.5% (54 respondents) are neutral towards Brand Value

20|BR Project
and are indifferent towards it whereas 19.7% (30 respondents) think that Brand
Value is the factor that matters the most and there is no bigger factor than this and
has rated Brand Value 5 out of 5. 3.2% respondents (5 respondents) said that Brand
Value is not very impactful factor and rated it at '2' on 5. 15.1% respondents (23
respondents) found Brand Value least impactful and rated it '1' on 5.

Brand Value

Out of the 152 respondents, 29.6% (45 respondents) think value matters a bit and
rated it 4 on a scale of 5. 30.2% (46 respondents) are neutral towards Brand Value
and are indifferent towards it whereas 20.3% (31 respondents) think that Brand
Value is the factor that matters the most and there is no bigger factor than this and
has rated Brand Value 5 out of 5. 12.5% respondents (19 respondents) said that
Brand Value is not very impactful factor and rated it at '2' on 5. 8.5% respondents
(13 respondents) found Brand Value least impactful and rated it '1' on 5.

Marketing

After knowing the most visible advertisement platform, the organization needs to
study the effectiveness of that platform. It might be possible that most of the
advertisements are visible on television but is unable to convert into sales or the
advertisements are least in the papers but have a far better impact on consumers.
So, to strengthen the marketing and promotion of the product, this question
needs to be answered.

26.3% respondents (40 respondents) said that their chosen medium of

21|BR Project
advertisements was efficient up to a level of 4 on 5. 17.1% respondents (26
respondents) rated their chosen medium of advertisements 3 on 5 on efficiency.
16.4% respondents (25 respondents) rated their option '2' on 5 in efficiency.
21.1% respondents (32 respondents) rated their choice perfect 5 saying that it
was most efficient of all. Mere 19.1% (29 respondents) rated their choice 1 on
efficiency stating that their chosen medium might be most visible but is least
efficient.

22|BR Project
 Factor analysis

Factor analysis is used to find factors among observed variables. In other words, if
our data contains many variables, we can use factor analysis to reduce the number
of variables. Factor analysis groups variables with similar characteristics together.
With factor analysis we can produce a small number of factors from a large number
of variables which is capable of explaining the observed variance in the larger
number of variables. The reduced factors can also be used for further analysis.

We have used this technique because it has extensive use in the field of
marketing and can be successfully used for new product development. In this
research five factors were used and they were reduced to two factors. The
following are given factors:

1) Satisfaction from the consumption

2) Effect of word of mouth on buying behavior

3) Impact of variety on sales

4) Does packaging enhances the visibility and uniqueness of the product and

5) Impact of brand on scales

6) Brand Face

7) Impact of free samples

8) Good Marketing

23|BR Project
9) Lottery offers

10) Creamy vs Non Creamy

11) No of biscuits in a packet

There are three stages in factor analysis:

1. First, a correlation matrix is generated for all the variables. A correlation matrix
is a rectangular array of the correlation coefficients of the variables with each
other.

2. Second, factors are extracted from the correlation matrix based on the
correlation coefficients of the variables.

3. Third, the factors are rotated in order to maximize the relationship between
the variables and some of the factors.

24|BR Project
INTERPRETATION OF THE OUTPUT

Descriptives

Descriptive Statistics

N Mean Std. Deviation

Satisfaction 152 3.7303 1.19031

Variety 152 3.3750 1.15554
Brand 152 3.3882 1.18517
Packaging 152 3.3947 1.15751
Word of Mouth 152 3.1776 1.27691
Marketing 152 3.1382 1.42378
Brand Face 152 2.5789 1.15390
Free Samples 152 2.7829 1.19001
Lottery 152 2.6579 1.34758
Cream or Non Cream 152 3.1579 1.40531
Quantity 152 3.3224 1.26387
Valid N (listwise) 152

The first output from the analysis is a table of descriptive statistics for all the variables
under investigation. By looking at the mean we can conclude all the variables are
closely related but the most important variable that influences the customer to buy
the product is the SATISFACTION of the product (HIGHEST MEAN 3.7)

25|BR Project
The Correlation matrix

A correlation matrix is simply a rectangular array of numbers which gives the

correlation coefficients between a single variable and every other variables in the
investigation. The correlation coefficient between a variable and itself is always 1,
hence the principal diagonal of the correlation matrix contains 1s.
Correlation matrix is used to determine whether we can use factor analysis or
not. The basic principle behind the application of factor analysis is that the initial
set of variables should be highly correlated. If the correlation coefficients
between all the variables are small, factor analysis may not be an appropriate
technique.

We can see from the table that all the variables are closely related. Hence we
can say that the correlation matrix is significant and we can use factor analysis
as an analytical tool.
26|BR Project
Kaiser-Meyer-Olkin (KMO) and Bartlett's Test

Both measures strength of the relationship among variables.

The KMO statistics compares the magnitude of observed correlation coefficients

with the magnitudes of partial correlation coefficient.

KMO statistics takes a value between 0 and 1. The KMO measures the sampling
adequacy which should be greater than 0.5 for a satisfactory factor analysis to
proceed. If any pair of variables has a value less than this, consider dropping one
of them from the analysis

KMO value in our research is .678 which is greater than 0.5 and acceptable for
factor analysis.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .678

Bartlett's Test of Sphericity Approx. Chi-Square 508.114

Df 55
Sig. .000

Bartlett's test is another indication of the strength of the relationship among

variables. This tests the null hypothesis that the correlation matrix is an identity
matrix. An identity matrix is matrix in which all of the diagonal elements are 1 and
all off diagonal elements are 0.

The hypothesis to be tested may be written as:

27|BR Project
Ho: Correlation matrix is insignificant, i.e. correlation matrix is an identity matrix.
H1: Correlation matrix is significant.

From the table, we can see that the Bartlett's test of sphericity is significant. That
is, its associated probability is less than 0.05. In fact, it is actually 0.000, i.e. the
significance level is small enough to reject the null hypothesis. This means that
correlation matrix is not an identity matrix and we can continue to pursue factor
analysis.

28|BR Project
Communalities

Communalities tells us how much of the variance in each of the original variables
is explained by the extracted factors. Higher communalities are desirable. If the
communality for a variable is less than 50%, it is a candidate for exclusion from the
analysis because the factor solution contains less than half of the variance in the
original variable, and the explanatory power of that variable might be better
represented by the individual variable.

Communalities

Initial Extraction

Satisfaction 1.000 .537

Variety 1.000 .573
Brand 1.000 .732
Packaging 1.000 .655
Word of Mouth 1.000 .522
Marketing 1.000 .834
Brand Face 1.000 .695
Free Samples 1.000 .819
Lottery 1.000 .766
Cream or Non Cream 1.000 .826
Quantity 1.000 .726

Extraction Method: Principal Component Analysis.

No variables are whose value is less than 0.5. We dont include values who are less
than 0.5.

29|BR Project
Total variance explained

Total Variance explained shows all the factors extractable from the analysis
along with their eigenvalues, the percent of variance attributable to each
factor, and the cumulative variance of the factor and the previous factors.

Total Variance Explained

Initial Eigenvalues Extraction Sums of Squared Loadings

Component Total % of Variance Cumulative % Total % of Variance Cumulative %

1 3.196 29.056 29.056 3.196 29.056 29.056

2 1.878 17.070 46.126 1.878 17.070 46.126
3 1.582 14.386 60.512 1.582 14.386 60.512
4 1.030 9.362 69.874 1.030 9.362 69.874
5 .782 7.110 76.984
6 .661 6.006 82.990
7 .524 4.761 87.751
8 .444 4.040 91.791
9 .335 3.047 94.838
10 .323 2.937 97.776
11 .245 2.224 100.000

Extraction Method: Principal Component Analysis.

Here first, second, third & fourth factor accounts for 69.874% of variance. All
the remaining factors are not significant.

30|BR Project
Component matrix

The table below shows the loadings of the five variables on the two factors
extracted. The higher the absolute value of the loading, the more the factor
contributes to the variable.

Component Matrixa

Component

1 2 3 4

Satisfaction .554 -.316 -.294 -.209

Variety .744 -.028 -.045 -.130
Brand .776 -.093 -.148 -.316
Packaging .758 -.179 -.191 -.108
Word of Mouth .704 -.072 .074 .123
Marketing .373 .811 .185 -.047
Brand Face .449 .321 .623 -.056
Free Samples .343 -.081 .749 .366
Lottery .304 -.105 -.450 .679
Cream or Non Cream .134 -.795 .341 .245
Quantity .308 .566 -.358 .428

Extraction Method: Principal Component Analysis.

a. 4 components extracted.

The first factor contains 4 variables which are Score on variety, word of mouth,
packaging and Brand. The second factor only contains the variable which is score
on marketing.

31|BR Project
Rotated component matrix

The idea of rotation is to reduce the number factors on which the variables under
investigation have high loadings. Rotation does not actually change anything but
makes the interpretation of the analysis easier.

Rotated Component Matrixa

Component

1 2 3 4
Satisfaction .701 -.147 -.142 .056
Variety .717 .109 .206 .073
Brand .847 .096 .062 -.039
Packaging .791 -.017 .074 .152
Word of Mouth .578 .001 .367 .231
Marketing .116 .818 .390 .004
Brand Face .192 .294 .729 -.202
Free Samples .016 -.197 .881 .065
Lottery .171 -.105 -.062 .850
Cream or Non Cream .133 -.838 .323 .055
Quantity .085 .571 .020 .626

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.

Keeping 70% as Threshold Value, looking at the table above we can say that
score on Packaging, Variety, Satisfaction and score on Brand are substantially
loaded on Factor (Component) 1. Score on Marketing, is substantially loaded
on Factor 2 while Brand Face and Free Samples loaded on Factor 3. And lastly,
Lottery is substantially loaded on Factor 4.

32|BR Project
 CONCLUSION

From the results, analysis and discussion these are the following conclusions that
we have arrived at.

Maximum number of respondents are of the age 18 to 35 which is very much

desirable for our research. Most of the Health conscious people are largely
found in the age group of 18 to 35 and thus are more probable to take up and try
new products which can enhance their health.

The regularity in biscuit consumption is nearly 72% which is a good sign showing
that market is growing and the opportunity is high. When consumption is as high
as 72%, a new entrant always has a chance of making its own niche and capturing
a significant part of market.

ITC and Britannia are the leaders at present. They both have to keep an eye on its
competitors product and marketing strategies and place its product in such a way
that it gets distinguished.

Nearly 34% of the respondents rated their current satisfaction at 5. It will be a bit
tough for a firm to introduce itself and make its mark. It will have to evaluate what
are the factors that are a cause of dissatisfaction among the consumers. It has to
remove them from its own product (if present) and focus on the factors that cater
to that dissatisfaction so that consumers change their preferences

Collectively, around 29.6% of the respondents are influenced by word of mouth.

Keeping this in mind, if a firm has to market itself it has to be placed in places
where there are a lot of social interactions like school, colleges, offices etc before

33|BR Project
 they are launched all over retails. Any new firm has to ensure that a positive word
of mouth is spread about the product before people go and buy it in retails. It would
boost the demand of the product without any real marketing.

Around 40.8% of the people buy biscuits that taste different and 35.5%
respondents buy biscuits that are good in quality. Both the factors work in favor of
a biscuit company. Since biscuits were initially introduced as a replacement to
breakfast, it tastes different and is meant for people who are health conscious.
Also, the four flavors in which the biscuit industry deals is different from all the
mainstream flavors namely, chocolate, bourbon, vanilla cream etc. So, a new firm
has to cater to both the criterion for buying a biscuit and provides an edge.

Mostly, whole of the population consumes biscuits for snacks as well as breakfast.
This solves the problem for the biscuit industry as it is being introduced as a
replacement for breakfast.

Collectively, 50.9% respondents said that variety impacts their buying behavior to
a large extent (rating it above 3 on 5), Biscuit comes in four flavors and thus offer
a considerable amount of variety to consumers.

As the results show, a majority of population spends nearly 10-200 on biscuits per
month. Not being too optimistic, biscuits should be moderately placed. It should
not be placed too high that it goes out of estimated expenditure of the buyer. Also,
it should not be placed too low as it can give a negative sentiment about its quality.

As the results show, 58.8% of the population thinks packaging is one of the most
important factor. Personally, I think, the colour combination should be Green-
Yellow. The biscuit industry should try and launch its first product in green-yellow
packaging. The reason for Green-Yellow being preferred is completely
environmental. Yellow is equated with sunny warmth and cheeriness. Its more
vibrant shades elicit feelings of wellbeing and are said to stimulate mental activity,
so yellow is often associated with wisdom and intellect. Green connotes
cleanliness, freshness and renewaland, of course, environmental friendliness
but experts warn that green now is overused in the marketplace. It is one of the
34|BR Project
 most predominant, naturally occurring colors, so it often is associated with
wholesome attributes.

53.9% of the population thinks Brand is what matters. Its just half of the
population. A new firm should target the other half and get their image made up
within a few years. Once that is done Word of Mouth will do the rest for the latter
half population.

21.5% of the respondents said that Marketing is the most important factor and
nearly 36.3% respondents (collective rating of 4 and 5) rated efficiency of their
selected mode above 3.

44.1(collective rating 2 on 5) of the respondents said that Brand Face doesnt affect
their buying to an extent. But 30%(collective rating 5 on 5) also said that Brand
Face is all that matters. A new firm have to keep this in mind and maybe hire a
public face that is in the budget and make him/her as their Brand Face.

45% of the respondents think that free sample really affect their buying. If the
product is really good, and the firm also lets the public try for free, then the public
will be willing to pay and buy the product. Only 18.4% think samples dont matter.
A new firm should go on distributing free samples, maybe with the daily
newspaper or in societies, colleges.

Offers like scratch and win Rs 10 PayTm, or scratch and win IPL tickets only appeal
to 30% of audience (rated above 3). It doesnt affect their buying at all. It only
attracts the 30% of the public. If given adequate fund, a new firm can try this but
shouldnt keep it as one of the top priority.

35|BR Project
 BIBLIOGRAPHY

http://www.itcportal.com/businesses/fmcg/foods/sunfeast.aspx

http://www.indianmirror.com/indian-industries/2014/biscuit-2014.html

http://www.parleproducts.com/about_parle/overview.php#

http://economictimes.indiatimes.com/business/indias-biscuit-market-goes-global-local-international-
brands-vie-for-market-share/articleshow/msid-6761585,curpg-2.cms?from=mdr

36|BR Project
ANNEXURE

37|BR Project
38|BR Project
39|BR Project
40|BR Project
41|BR Project
42|BR Project