How should Parle - G rebrand itself?
Submitted by:
Business Research Methods - II Group 2
Amit Kumar Shaw (M005-18) Harshita MV (M020-18) Hemlata Choudhary (M021–18) Patil Shradha Kailas (M031-18) Samrat Datta (M040-18) Soumya Sengupta (M044-18) Tannavi Singh (M050-18)
Reporting to Prof. Aditya Shankar Mishra
Parle - G How should Parle - G rebrand itself?
MDP
FGD Structured Questionnaire
From its packaging to the biscuit itself, there have not been any significant changes for over a decade. However, in order to stay competitive, how should Parle - G rebrand itself?
In order for the management to make a decision on how Parle - G should be rebranded, they first have to analyze the factors which affect a consumer’s decision to buy a biscuit.
Q1. what brand of biscuit do you generally prefer? Q2. What comes to your mind when you go to buy biscuit? Q3. When you visit a departmental store what do you consider when you see multiple brands of biscuits? Q4. If there is a price reduction in particular biscuit, does this affect your decision of buying that particular biscuit? Q5. One incident that clicks you regarding biscuit in terms of price? Q6. Enhancements in the biscuit would affect your buying behaviour? Q7. Is there any biscuit which is considered as healthy or anyone has prescribed your particular brand? Q8. When was the last time you were introduced to a particular biscuit and what was the way? Q9. One good and bad memory or incident related to biscuits based on any factor. Q10. How do you associate with a brand of biscuit? Q11. What affects your buying behaviour of particular biscuit? Q1 Q.12. Has any media gimmick by any company has affected your buying behaviour? Q Q13. If a particular brand stops publishing its biscuits, how will it affect you?
The management can take a decision on the areas in which they have a scope for improvement. Specific Components:
MRP
1. 2.
3. 4.
Should Parle - G make changes to its packaging? How do factors like packaging, advertising and pricing affect the brand perception of Parle - G among the consumers? What are the parameters that help a company become the market leader in the biscuit industry? How do demographic, geographic, psychographic and behavioural factors of the consumers affect the brand perception of Parle - G?
Depth Interview Inference
Using this qualitative research technique, we got an individual’s perspective about buying a particular kind of biscuit. From this interview we enquired about his choices, eating habits and other details which gave an idea about his lifestyle . From this, we inferred that there are a few factors which influence a customer’s behaviour while shopping for a biscuit. Before proceeding with our research and data collection we further conducted an FGD to get an opinion of 4-5 people on the same topic.
Parle - G
Survey Demographics FGD Inference On the basis of the FGD conducted, we identified few prominent factors: • Price • Advertisement • Packaging • Nostalgia Factor • Taste • Budget Constraint
Factor Analysis Formulating the Problem Initially, we conducted exploratory research through FGD and in-depth interviews. A few factors such as price, brand consciousness and taste consciousness were identified as important. The respondents filled out questionnaires based on characteristics which affect their biscuit buying behaviour.
Correlation Matrix This is a matrix showing the correlations between the variables. We can see that variable 3 is positively correlated with variable 5 and negatively correlated with variable 6. The approximate chi-square statistic is 779.756, with 28 degrees of freedom which is significant at the 0.05 level. The value of KMO statistic, 0.520 is greater than 0.5, hence factor analysis may be considered an appropriate technique for analysing the correlation matrix.
Factor Analysis Number of Factors Eigenvalues represent the amount of variance associated with the factor. If Eigenvalues are greater than 1, those factors are retained.
The three components together account for 84.584% of the total variance.
Scree Plot The plot has a distinct break in the slope of the factors in the region of high eigenvalues and it gradually trails off with the rest of the factors. We see that three variables have eigenvalue > 1.
Factor Analysis The factor matrix contains the coefficients called the factor loadings, used to express the standardized variables in terms of the factors. We have rotated the matrix used the varimax method, to get loadings for the significant variables. Questions Q1. While grocery shopping, I have a limited budget Q2. The most important consideration while buying a biscuit is its taste Q3. If a biscuit brand I like releases a new product, I will try it out Q4. Before I buy a packet of biscuits, I check its price Q5. I prefer to have a wider variety of biscuits to suit my taste Q6. The brand of the biscuit does not influence my decision to buy it Q7. Price of a biscuit does not influence my buying decision Q8. The brand ambassador & advertisements are not important factors while buying biscuits
Results
Rotated Matrix
We can identify from the rotated component matrix that variables 3, 6 and 8 are highly correlated, with variable 6 being negatively correlated to the other two variables. An analysis of the questions tells that they can be grouped as Brand Consciousness. The variables 1, 4 and 7 are also correlated and can be clubbed as Price Consciousness. Variables 1 and 4 are positively correlated with each other and negatively correlated with variable 7. The variables 2 and 5 are positively correlated, and can form a factor of Taste Consciousness.
Discriminant Analysis Objective: To identify the key factors that play an important role when a consumer is making a choice between buying Parle - G and Britannia Marigold (one of Parle - G’s major competitor). Background: From our exploratory research data, we had reached down to the following factors which play an important role in the buying of biscuits: brand association, pricing, packaging, advertisement, taste, nutritious values and emotional connect. The aim of the analysis is to identify the significant factors and their impact on the buying of the competitor biscuits.
Results
Grouping Variable: Buyer Choice (1-> Parle - G; 2-> Britannia Marigold) Independent Variable: Brand association (brand_assoc), pricing (price), packaging (packaging), advertisement (advertisement), taste (taste), nutritious values (nutritious values) and emotional connect (emotional connect).
Discriminant Analysis
The significant factors for the choices would be revealed from the chart of “Tests of Equality of Group Means” which shows that Nutritious values is not a significant factor
Multi-collinearity is unlikely to be a problem in the analysis; however, it is not witnessed here as shown in the Pooled-Within Group Matrices:
Discriminant Analysis
X1 = Brand X2 = Price X3 = Packaging X4 = Advertisement X5= Taste X6 = Nutritious Values X7 = Emotional Connect
Result In this case, the significant factors are emotional connect and attitude towards the brand. Therefore, they happen to be the most dominant factors influencing buyer’s decision to buy Parle - G.
Buyer Choice1 = .248 x1 + (-.204) x2 + (-.197)x3 + .102x4 + (-.104)x5 + .005x6 + .362x7 + (.536)
Managerial Implication
Results
According to factor analysis, the general factors which affect a consumer’s biscuit buying decision are brand consciousness, price consciousness, and taste consciousness. From the discriminant analysis, we see that the major variables which make people buy Parle-G are emotional connect and attitude towards the brand. Hence, the management should take care to maintain this connect with the consumers while re-branding itself. While re-branding itself, Parle-G should focus on the areas of price and packaging.
Limitations • The majority of people being surveyed belonged to the age category of 19-25 years • Children (age group 6-14) were not included in our research • No representation of people from BPL section of society • The ratio of employed, unemployed and student category was not equal throughout the research
Research Conclusion Our research hypothesis (null) that Price and emotional connect are the dominant factors influencing the buyer decision in favour of Parle G has been proven to be partially incorrect, and hence, the null hypothesis needs to be rejected. An affiliation for the buyers regarding their association with the brand has been seen to be primarily motivated by their emotional connect with the brand. On the other hand, it is seen that a more popular brand has got advertisement and packaging as its dominant influencing factors in buying. Taste and Nutrition values have been seen to be the least significant of the discriminating factor among buyers across the two sections.
Thank You!!