fyp project report
TRANSCRIPT
Exploring White SpacePEPSICO PAKISTAN
Introduction and TOR Promises
Launch a Product in the Non-Potato-Chips category that has1. Wide scale Acceptability2. Profitability PotentialRecommendations for 3. Segmentation of the Winning Concept4. Flavor5. Shape6. Price7. Packaging
Rationale
• Lay’s leading player in potato chips segment• Non-Potato-Chips Category growing at 9% annually• High growth Potential in NPC category• Pepsi entered into NPC with Cheetos & Kurkure• Intense Competition in the growing NPC Segment• Need to come up with new and Innovative products to
sustain growth in the competitive NPC landscape
Overview of Three Concepts
Methodology
Secondary Research
• Review of the local and international research reports on Snack Industry• Selection of relevant variables and insights for the Focus Groups
Primary Research-
Focus Groups
• All three concepts tested against 12 Focus Groups• Focus groups distributed over SEC A, SEC B and SEC C• Gender Male and Female• Age Brackets 16-24 and 25-34
Primary Research- Survey
• Developed English and Urdu questionnaires SEC A and B and SEC C respectively.
• Large scale data collection through Researcher Administrated Interviews
Data Analysis
• Analysis of 441 Surveys through SPSS and MS Excel• Analysis of all 3 Concepts• Volume Estimation of the winning concept
14th Septem
ber, 2013 till 2nd May,
2014
Survey Design
SEC A and BMale and Female
Age: 16-24
SEC A and BMale and Female
Age: 25-35
SEC CMale and Female
Age: 16-24
SEC CMale and Female
Age: 25-35
MONADIC- ONE CONCEPT• EACH RESPONDENT WAS
EXPOSED TO ONE CONCEPTBRAND ASSOCIATION WITH PEPSICO • FOR GREATER
UNDERSTANDINGRANDOM SAMPLE • REPRESENTATIVE SAMPLE• USED FOR VOLUME
ESTIMATION
Overall Findings
Percentage of Purchase intention
Concept Purchase Intention – Mean Score
Snack Blast
Premium Nuts
Crispy Snack
3.55 3.60 3.65 3.70 3.75 3.80 3.85 3.90 3.95 4.00
3.76
3.72
3.97
Concept Attributes – Mean Score
Taste Quality Number of flavors Healthy Snack Reasonably Priced
4.64.3
4.0
3.4
3.7
4.1 4.14.3
3.9
3.4
3.8 3.8
3.4 3.53.2
3.93.7
4.2
3.4 3.5
Favorite Product Crispy Snack Premium Nuts Snack Blast
Concept Perception Results
New & Different Intensity of Liking Degree of Relevance
3.79
4.39
3.43
2.923.09
2.93
3.64
3.99
3.29
Crispy Snack Premium Nuts Snack Blast
Crispy Snack Analysis
Crispy Snack – Category Preference
Chocolate
Packed Biscuits
French Fries / Home Fried Snacks
Chips / Extrudes
Peanuts / Dried Fruits
Street Snacks
76%
50%
69%
81%
63%
71%
24%
50%
31%
19%
38%
29%
Admirers Skeptics
Crispy Snack – Attribute Perception
Better Taste
Higher Quality
Healthier Snack
Crispy Snack – Favorite Brand Comparison
Admirers like both PC and NPC snacks while skeptics are mainly interested in PC snacks
Crispy Snack – Respondents by Weekly Consumption
Crispy Snack – Behavioral I prefer quality over taste?
Crispy Snack – Purchase Frequency
Crispy Snack - Who to target?
Age: 16 – 35 years SEC A,B & C Male & Female
Premium Nuts Analysis
Premium Nuts – Category Preference
Chocolate
Packed Biscuits
French Fries / Home Fried Snacks
Chips / Extrudes
Peanuts / Dried Fruits
Street Snacks
65%
31%
72%
75%
86%
73%
35%
69%
28%
25%
14%
27%
Admirers Skeptics
Premium Nuts – Attribute Perception
Better Taste
Higher Quality
Indifferent about it being a healthier Snack
Premium Nuts – Behavioral I prefer quality over taste?
Premium Nuts – Purchase Frequency
Premium Nuts - Who to target?
Age: 16 – 35 years SEC A,B & C Male & Female
Snack Blast Analysis
Snack Blast – Category Preference
Chocolate
Packed Biscuits
French Fries / Home Fried Snacks
Chips / Extrudes
Peanuts / Dried Fruits
Street Snacks
69%
77%
64%
69%
71%
76%
31%
23%
36%
31%
29%
24%
Admirers Skeptics
Snack Blast – Attribute Perception
Better Taste
Higher Quality
Indifferent about it being a healthier Snack
Snack Blast - Who to target?
Age: 16 – 35 years SEC A,B & C Male & Female
Volume Estimation
Volume Estimation - ModelNo of HH in TA
• Total Population
• Target SEC
% of TA aware of new product
• Level of Awareness
• Strength of IMC
No of trial HH’s
• Distribution penetration
• Projected Trial Rate
Trial Volume in units
• % of purchase intent
• Average volume purchased in trial
No of repeat purchase HH
• % of repeat purchasers
Repeat Purchase Volume in units
• Average no of purchase events
• Average volume purchased
First year Sales Revenue
Total Population (Pakistan)
Number of households in the target audience (16-25) 1
Level of awareness 2
% of target audience aware of new productDistribution PenetrationNo of aware households able to access new productProjected trial rate 3
No of trial households% of Purchase intentNo of HH's who will purchase this productAverage volume purchased at trialTrial volume in units (TVIU)
No of trial households% of repeat purchasers 4
No of repeat purchase householdsAverage no of purchase eventsAverage volume purchasedRepeat purchase volume in units (RPVIU)First year sales (in units) Price Points (Rs.)Revenue
Volume Estimation - Model
Crispy Snacks
Premium Nuts
Snack Blast
Total Population (Pakistan) 190,000,000
Number of customers in the target audience (16-35) 1 66,500,000
Level of awareness 2 50%
% of target audience aware of new product 33,250,000
Distribution Penetration 60%
No of aware customers able to access new product 19,950,000
Projected trial rate 3 74%
No of customers who will purchase this product 14,763,000
Average volume purchased at trial 1.6
Trial volume in units (TVIU) 23,620,800
No of customers who will purchase this product 14,763,000
% of repeat purchasers 4 74%
No of repeat purchase customers 10,924,620
Average no of purchase events 50
Average volume purchased 1
Repeat purchase volume in units (RPVIU) 546,231,000
First year sales (in units) 569,851,800
Total Population (Pakistan) 190,000,000
Number of customers in the target audience (16-25) 1 66,500,000
Level of awareness 2 50%
% of target audience aware of new product 33,250,000
Distribution Penetration 60%
No of aware customers able to access new product 19,950,000
Projected trial rate 3 67%
No of customers who will purchase this product 13,366,500
Average volume purchased at trial 1
Trial volume in units (TVIU) 13,366,500
No of customers who will purchase this product 13,366,500
% of repeat purchasers 4 67%
No of repeat purchase customers 8,955,555
Average no of purchase events 25
Average volume purchased 1
Repeat purchase volume in units (RPVIU) 223,888,875
First year sales (in units) 237,255,375
Total Population (Pakistan) 190,000,000
Number of customers in the target audience (16-25) 1 66,500,000
Level of awareness 2 50%
% of target audience aware of new product 33,250,000
Distribution Penetration 60%
No of aware customers able to access new product 19,950,000
Projected trial rate 3 72%
No of customers who will purchase this product 14,364,000
Average volume purchased at trial 1.5
Trial volume in units (TVIU) 21,546,000
No of customers who will purchase this product 14,364,000
% of repeat purchasers 4 72%
No of repeat purchase customers 10,342,080
Average no of purchase events 50
Average volume purchased 1
Repeat purchase volume in units (RPVIU) 517,104,000
First year sales (in units) 538,650,000
General Insights• RESPONDENTS PREFERRED
TRADITIONAL PACKAGING• CONSUMERS ARE ATTRACTED
MORE TO FOOD PRODUCTS IMAGES ON THE PACKAGE
• CONSUMERS PREFERRED WAVY STICKS & CRISPY CONES
• CONSCIOUS OF HOW MUCH FAT IS THERE IN THE PRODUCT
• PREFER TASTE OVER SHAPE & PACKAGING
• PREFER QUALITY OVER TASTE
Can Traditional Transparent0%10%20%30%40%50%60%70%
Packaging Preference
Wavy Sticks Round and Hollow
Crispy Biscuits
Oval Shaped Chips
Crispy Cones
0%
5%
10%
15%
20%
25%
30%
Shape Preference
Top Flavors
Limitations
• LAHORE BASED SAMPLING• PRODUCT USE TEST NOT AVAILABLE• RESPONDENT BIAS
Thank you OPEN FOR QUESTIONS