BRM

PROJECT
VGSOM
MBA: 2010-12

A Report on preferences and

consumption patterns of Instant
Noodles.
Preamble: The objective of the report is to determine the
consumer preferences for instant noodles. It is aimed at
determining the features most preferred by consumers and
segmenting the population according to their preferences. The
same would enable a new brand to adopt the most desirable
features in its product and strategies to promote the same.

Tool Used: The software, PASW was used to conduct the

analysis. Previously known as SPSS, it is among the most widely
used programs for statistical analysis.

Methodology Used: The Cluster Analysis methodology was

used to conduct our analysis.

Cluster Analysis: The term cluster analysis encompasses a

number of different algorithms and methods for grouping
objects of similar kind into respective categories. A general
question facing researchers in many areas of inquiry is how to
organize observed data into meaningful structures, that is, to
develop taxonomies. In other words cluster analysis is an
exploratory data analysis tool which aims at sorting different
objects into groups in a way that the degree of association
between two objects is maximal if they belong to the same
group and minimal otherwise. Given the above, cluster analysis
can be used to discover structures in data without providing an
explanation/interpretation. In other words, cluster analysis
simply discovers structures in data without explaining why they
exist.

Our aim to use the Cluster Analysis was to segment the Noodle
customers according the Taste, Brand, Age, income, No of
different Flavours offered etc. For the data gathered, 2-step
clustering methodology was used to obtain the clusters.
Limitations: The survey was primarily conducted amongst the
student community, thus the sample set received was not a
true reflection the population demographic.
 Questionnaire Used: The following questionnaire was used to
obtain the responses.

Questionnaire for new instant noodle launch

This is a survey undertaken to evaluate consumer preferences regarding noodle brands

* Required
Top of Form

Name *

Age *

• <18 years

• 18-25 years

• 25-35 years

• >35 years

• I do not wish to disclose

Occupation *

• Student

• Professional

• Self Employed

Monthly Family Income *

• < Rs. 10,000

• Rs. 10,000 - Rs. 25,000

• Rs. 25,000 - Rs. 50,000

• > Rs. 50,000

List the products in the order of preference * 1 - Most preferred, 5 - Least preferred
 1 2 3 4 5

Horlicks Foodles

Nissan Top Ramen

Knorr Soupy Noodles

Nestle Maggi

Sunfeast Yipee

Rate the importance of the following while choosing a noodle * 1 - Least Important, 5 - Highly Important

1 2 3 4 5

Brand

Length of noodles

Taste

Variety of flavors offered

Price

Packaging

Non-stickiness

Ease of preparation

Availability

Health Ingredients

Who decides which brand of noodles to buy in your household? *

• Children

• Parents

• Spouse

• No specific decision-maker

How do you come to know about new product launches? *

• Television

• Newspapers/ Magazines

• Radio

• Friends

• Store Display

• Others

Do you like to try new flavors? *

• Yes

• No

What pack size do you normally purchase? *

• Single pack

• Double pack

• Family pack (4-in-1 pack)

Analysis : For the final analysis, the data table in PASW was
obtained as such.

Name Type Description Value Labels Measurement Level

Age Numeric {1, 18-25}... Ordinal

 Occupation Numeric {1, student}... Nominal

Income Numeric {1, <10000}... Ordinal

HorlicksFoodles Numeric Horlicks Foodles {1, Least important}... Ordinal

NissanTopRamen Numeric Nissan Top Ramen {1, Least important}... Ordinal

K2rrSoupy2odles Numeric K2rr Soupy 2odles {1, Least important}... Ordinal

NestleMaggi Numeric Nestle Maggi {1, Least important}... Ordinal

SunfeastYipee Numeric Sunfeast Yipee {1, Least important}... Ordinal

RateBrand Numeric Rate[Brand] {1, Least important}... Ordinal

RateLengthof2odles Numeric Rate[Length of 2odles] {1, Least important}... Ordinal

RateTaste Numeric Rate [Taste] {1, Least important}... Ordinal

RateVarietyofflavorsoffered Numeric Rate[Variety of flavors offered] {1, Least important}... Ordinal

RatePrice Numeric Rate[Price] {1, Least important}... Ordinal

RatePackaging Numeric Rate [Packaging] {1, Least important}... Ordinal

Rate2nstickiness Numeric Rate[2n-stickiness] {1, Least important}... Ordinal

RateEaseofpreparation Numeric Rate[Ease of preparation] {1, Least important}... Ordinal

RateAvailability Numeric Rate [Availability] {1, Least important}... Ordinal

RateHealthIngredients Numeric Rate[Health Ingredients] {1, Least important}... Ordinal

Whodecides Numeric Who decides? {1, children}... Ordinal

Channel String None Nominal

newflavors Numeric new flavors? {1, yes}... Nominal

packsize Numeric pack size {1, single pack}... Ordinal

television Numeric television {0, not through this media}... Nominal

newsmag Numeric newspaper/magazine {0, not through this media}... Nominal

friends Numeric friends {0, not through friends}... Nominal

display Numeric store display {0, not through store display}... Nominal

sources Numeric sources {0, not through other sources}... Nominal

Note: This is a sample data set and not the exhaustive list
Output:
Description: Two major segments are obtained. A brief
description of the same is provided as.

Segment 1:

• Gives relatively high importance to a variety of flavours

• Gives high importance to availability
• Gives high importance to ease of preparation
• Very high preference for taste
• High brand consciousness
• Gives relatively high importance to health ingredients
• Main source of communication is through newspapers and
magazines along with in-store displays

Segment 2:

• Prefers to stick with a particular flavour

• Not highly brand conscious

The analysis has primarily provided with segment1 with

constitutes 80% of the survey population. The second segment
is the generic population not confirming to any particular
segment.

Conclusion: Since the survey was primarily conducted

amongst the student community, our recommendation for a
new instant noodle brand launch targeted at the student
community the brand should focus on taste, variety of flavours,
high availability, and ease of preparation along with health
supplement features. The primary communication channel
should be newspapers and store displays.