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Project Pure A Business Research Proposal 12/9/2013

Parry Sugar Industries India Limited

Group 7_Section B

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Table of Contents

Sl No Content Page 1 Introduction 3 2 Objective 4 3 Desk Research 5 4 Qualitative Research 7 5 Quantitative Research 10 6 Reporting 13 7 Timing 14 8 Fees 15 9 Credentials 16 10 Annexure 17

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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 Tropical zones Uttar Pradesh (UP) Uttaranchal Bihar Punjab Haryana

Maharashtra Andhra Pradesh (AP) Tamil Nadu (TN) Gujarat Karnataka

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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.

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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,

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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?

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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,

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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,

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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 _____________________________________

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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

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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 Non Metro Households per city 100 100

Retail Stores 150 70 Hotel Industry 50 30

Office Canteens 50

• Duration

Duration required to perform the quantitative research will require around 4

weeks.

(Diagram: Sampling Distribution)

Simple Random Sampling

25%

Systematic Sampling

60%

Convenience Sampling

15%

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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.

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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.

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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 Activity 3 Desk research

5 Qualitative fieldwork

2 Qualitative/Desk research report available

1 Questionnaire development 2 Pilot (n=250)

1 Pilot debriefing

3 Quantitative Stage

2 Coding and data preparation

3 Analysis 2 Presentation

1 Final Report Available

25 Total No of Days

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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 Fees (in Rs) Desk Research 6,000

Qualitative Research 4,90,000 Quantitative Research 59,400

Total Fee 5,55,400

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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.

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Annexure I

Sample Questionnaire for Households

1. How many people do you have in your family?

2. 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

3. Approximately, what amount of sugar do you consume monthly?

4. How many times in a month do you purchase sugar?

5. 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)

6. What form of packaging do you prefer while buying?

a. Loose packaging

b. Store packaging

c. Company packaging

7. How much amount of sugar do you buy at one time?

8. Which are the factors do you consider while buying sugar?

a. Quality

b. Price

c. Brand

d. Packaging

e. Availability

9. Are you aware of the brand Parrys?

10. Have you ever tried Parrys Sugar?

11. 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)?

12. 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

13. I would use Parrys Sugar again ………………………………………………

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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?

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Annexure II

Sample Questionnaire for Retailers

1. Name of the shop/outlet :

2. Address/Location:

3. Type of outlet:

a. General Shop

b. Grocery Store

c. Super market

d. Hypermarkets

4. Which brands of sugar do you deal in?

a. Loose packaging

b. Store packaging

c. Company packaging

5. Which brand of sugar do the customers ask for?

6. How many kgs of sugar on an average do you sell every day?

7. Do you sell Parry’s sugar?

8. Yes

9. No

10. If yes, how many kgs of Parry’s sugar on an average do you sell everyday?

11. 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

12. Which are the factors that customers consider while buying sugar?

a. Quality

b. Price

c. Brand

d. Packaging

e. Availability

13. What other brands are strong competitors to Parry’s sugar?

14. I would sell Parry’s Sugar again ………………………………………………

a. Definitely

b. Probably

c. Never

15. Along with which products are Parry’s sugar placed on the shelves.

16. Do customers who are cost sensitive purchase Parry’s sugar?

17. What kind of promotional activities affect sale mostly?

a. Discount

b. Free gifts

c. Bottled sugar (Free bottle)

18. What age groups of the population prefer Parry’s sugar?

a. Between 20-30

b. Between 30-40

c. Greater than 40

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Annexure III

Sample Questionnaire for Hotels and Canteens

1. Name of the shop/outlet :

2. Address/Location:

3. How many transactions occur in a day?

a. Less than 1000

b. 1000 – 2000

c. 2000 – 3500

d. More than 3500

4. Approximately, what amount of sugar do you consume monthly?

5. From where do you purchase sugar often?

a. Wholesaler

b. Company Godowns / Warehouse

c. Hypermarket

6. How many times in a month do you purchase sugar?

7. What form of packaging do you prefer while buying?

a. Loose packaging

b. Store packaging

c. Company packaging

8. 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

9. Are you aware of the brand Parrys?

10. Have you ever tried Parrys Sugar?

11. 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)?

12. 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

13. I would use Parrys Sugar ………………………………………………

a. Definitely

b. Probably

c. Not so sure

d. Never

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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, Rs 40000 X 2 X 4 = Rs 3,20,000

In non-metros 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, Rs 175 X 4 X 50 = Rs 35,000

In non-metros, 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, Rs 40 X 1200 = Rs 48,000

For retail stores, 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.