QMR|INDIVIDUAL ASSIGNMENT|VIKALP NIGAM

QMR | INDIVIDUAL ASSIGNMENT

December 10

2013
Vikalp Kumar Nigam 2012PGP436

This submission is in regards to the fulfillment of credits of the course Qualitative Marketing Research overlooked by Prof. Bhavani Shankar. It includes the complete qualitative research plan including the research questions as well the research methodology and then come to conclusions with respect to Kraft Foods new product Crispellos positioning

QMR | RESEARCH PROPOSAL | KRAFT FOODS

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Table of Contents
Introduction Chocolate Industry ...........................................................................................1 About Kraft Foods ............................................................................................................... 2 Research Problem ....................................................................................................................4 Research Methodology ............................................................................................................4 Qualitative Techniques Used5 Respondent Profile..6 Relevant Questions to Facilitate Data Collection ..6 Plan for carrying out Analysis of Data7 Expectations from the Proposed Study.8

QMR | RESEARCH PROPOSAL | VIKALP KUMAR NIGAM

Q M R | I N D I V I D U A L A S S I G N M E N T 2013

Introduction Chocolate Industry

The chocolate market in the past few years has witnessed tremendous growth in terms of the value as well as the volume. The governance of market is maintained by large international giants through franchisee and expansion into new markets which is leading to the growth of the chocolate market in India. It is expected that the Indian chocolate industry will be growing at the CAGR 23% by volume between the years 2013 - 2018 and reach at 3,41,609 tons. The industry has a positive outlook due to the phenomenal growth in the confectionary industry, rising per capita income and gifting culture in the country. According to India Chocolate Market Forecast & Opportunities 2018, the per capita consumption of chocolates is increasing in the country which will continue to flourish the market revenues. The dark chocolates are expected to account for the larger market share as compared to milk and white chocolates in the coming years. The introduction of medicinal and organic ingredients in the manufacturing of chocolates has led to a new trend and development in the country, which will be adapted by major manufacturers to remain active in the market. Indias chocolate industry size is currently worth about Rs 5,000 crore and is likely to cross Rs 7,500 crore marks in the next couple of years while globally the chocolate industry is worth over $85 billion. Besides that, Indias per-capita chocolate consumption is hovering at about 100 grams and urban centers comprise 35 per cent of the chocolate consumption in the country. Cadbury (Now owned by Kraft Foods) is leading the pack with about 70 per cent market share followed by Nestle, Amul, Ferrero Rocher, Toblerone and others.

About Kraft Foods

Kraft Foods is worlds second largest food company with annual revenues of $49.2 billion with consumers in over 170 countries. The company has twelve brands which by the name of Cadbury, Jacobs, Kraft, LU, Maxwell House, Milka, Nabisco, Oreo, Oscar Mayer, Philadelphia, Trident and Tang. More than 80 percent of our revenues come from products that hold the No. 1 share position in their respective categories. And more than 50 percent of our revenue is driven by categories where our market share is twice the size of the nearest competitor. Kraft Foods have a new product offering in

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Crispello Double Choc delicious individual wafer shells with a creamy chocolate filling, covered in rich Cadbury milk chocolate.

Research Problem
Considering the trends in the chocolate industry over the past few years and the decreased consumption in chocolate in the last year, we look to find the reasons behind the same. To support our claim we have developed our problem statement: The purpose of the study is to understand the trends in the falling consumption of chocolate in the past year and to understand that if at all women are shunning buying chocolates altogether On the basis of our comprehensive qualitative research as per this research proposal we would like to find answers to our queries either supporting our belief or negating it.

Research Methodology
With regards to our problem statement, in order to find support to our claim that women are slowly but surely cutting down on their purchase of chocolates all together. We plan to use an array of exploratory qualitative research methods ranging from sampling to in-depth interviews to focus group discussions to covert observation as well, to understand the buying pattern, points of purchase and occasions of purchase of chocolates. Our research will largely be focused on the same target market which Kraft Foods is trying to focus its own new offering Crispello. On the basis of our sample findings we wish to generalize it to our concerned population and help us establish a few pointers. At the end of our research we would be able to: Help us understand the buying behavior of chocolates of women, in general Enable us to find the major points and occasions of purchase of chocolates To help us probe into deciding whether the drop in chocolate consumption is in fact due to women trying to be more healthier In case a healthier alternative is provided as a chocolate, will there be a willingness to buy and try it Does providing a chocolate in separate 3 portions impacts the buying pattern of women

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Qualitative Techniques Used

In order to fulfill our research objectives, like mentioned before we plan to use variety of qualitative techniques and the details of individual technique has been provided below:

In depth Interviews
One of our major sources of insight gathering will be in-depth interviews as it will help us elicit a really vivid picture our participants view towards our research topic and understand his/her standpoint on it. In depth interviews allows the researcher to ask from his gamut of questions ranging from any aspect of the research objective as well as it gives researcher enough time to analyze the answers that he is getting. It is an expansive form of research requiring time and dedication but the output we receive from in-depth interviews is extremely rich in content and in our case will give us insight into the buying behavior of our target market.

Focus Group Discussions

Another aspect of our exploratory research deals with carefully planned focus group discussions designed for a select few individuals at a time (say, from 8-12 people) regarding the buying and consumption pattern of chocolates. It is a very good method for examining the point of views, beliefs and needs of an individual. Sitting in a group with people sharing their own experience helps us comprehend as in what goes in behind the mind of the consumer when they approach to buy, say, a chocolate. With the help of an FGD we can gather a lot of diverse opinions on our topic in one place itself although the data/insights obtained per person is low, but the variety of data offsets it.

Observation (Covert)
Continuing in our series of exploratory qualitative research to find answers to our problem statement, we turn towards observation a way of gathering data by watching and noting physical characteristics of our respondents in natural setting, so as to understand and decipher a pattern in buying in our consumers. In our case, we will use covert observation to help us interpret the exact point of purchase of the chocolate, when they buy it, how often do they buy it, how important a role does product placement plays etc.

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Respondent Profile
The respondents of our research resonate with the target market of Kraft Foods latest offering Crispello, which is largely focused on 25+ health conscious women . Further details of the profile of the respondents is provided below Largely working Females; Aged 25+ Regular consumer, health conscious Outgoing, socially active, take decisions for themselves Willing to try on new products, enthusiastic and of positive attitude

Relevant Questions to Facilitate Data Collection

1. In- depth Interviews
The following list of questions can be used as a pointer to interview individual candidates as a part of In-depth interviews in order to find a result to our problem statement Do you like eating chocolates, if yes, how often do you buy/consume it? Are you of the opinion that chocolates are unhealthy for your health, if so, will you stop eating it? Where do you generally buy chocolates from? Is it a pre-planned purchase or largely an impulse purchase? Are you brand specific while buying chocolates or do you pick anything that is available? Is price a major criterion for you? Do you wait for festivals or birthdays to have chocolates? Will your habits change, if in case a health conscious chocolate bar comes to the market? How important are the ingredients of the chocolate for you? Do you prefer one long chocolate bar or you would like to have separate portion that can be eaten one at a time? Does TV advertisement, market buzz play an important role in helping you, make a call regarding which chocolate to buy?

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2. Focus Group Discussion
In case of a focus group discussion we aim to have about 8-10 people, a group not too big but just good enough for everyone to participate in the discussion. The participants are chosen on the basis of similar demographics and fairly similar buying habits and patterns. It will give us an insight as to what exactly why they buy a chocolate, different people buy it for different occasions, how crucial is the brand or the price of the product or the ingredients.

3. Observations
In our third method of data collection, we will use covert observations, keeping an eye on our select few respondents in places likes malls, super-markets, bakery shops, shopping centers the places where 25+ females generally go, other than their offices. That will give us an idea as in to point of purchases and about the timing of the buy and in case there is a rival brand present, how big a part does that play. Do things like a discount matter when you are buying a chocolate? Therefore, we will handpick a few locations like mentioned before. Noticing them in their natural environment buying something will give us invaluable insights in the buying patterns.

Plan for carrying out Analysis of Data

The qualitative data that we have at our disposal post the techniques used by us can be analyzed by several different techniques. The details of the same are being explained below:

In-depth Interviews
Daily Interpretative Analysis

One of the most important aspects of an in-depth interview is the richness of the data you get but more importantly the tedious task is to record it, be it in the form of tape recordings or hand written notes. There is a trade-off which comes with in-depth interviews that is the quality of the data but with the factor of time involved.
Narrative Analysis

The narrative analysis will be used to analyze the interviews of the respondents and to understand the psyche of the consumers that goes into buying a chocolate, making a purchase

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Focus Group Discussions
In terms of the data from the focus groups we do a coding exercise of the transcribed data and then trim it as that we only have the meaningful part with us. The coded material may be phrases, sentences, or long exchanges between individual respondents.
Content Analysis

Post the coding process, the content of the discussion must be examined and the meaning and its particular implications for the research question at hand discovered to analyze what the focus group meant so that we can understand better regarding our problem statement and help establish some conclusions.

Observations
Discourse Analysis

It will be used to analyze the data collected by observing the select few respondents likes malls, super-markets, bakery shops, shopping centers, as mentioned above. It will involve noticing the buying habits in the people and try to see and decipher if there is a particular pattern emerging from it, which can prove useful to our research.

Expectations from the Proposed Study

Post the completion of all our qualitative techniques, gathering the data and then analyzing it as mentioned in the previous section we hope to find the following details from the entire process and help us understand the consumer buying behavior towards chocolates better. We will be able to establish whether or not there has been a decline in the buying habits of chocolates in women due to health conscious reasons? If at all, there will be a change in their habits, provided a healthy chocolate bar enters the market i.e if the idea of a diet chocolate attracts them enough? To see if providing separate portions of chocolates rather than one makes a difference to the consumer (For ex. Maltesers by Mars Corp. already offer that) We will be able to align the integrated marketing communication correctly with respect to women as we are focusing on gender based marketing During the purchase of a chocolate, how big a part do the ingredients of the bar play? (Crispello offers a mix of wafer and chocolate)

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