1. BRM PROJECT
VGSOM
MBA:2010-12
A Report on preferences and consumption
patterns of Instant Noodles.
Project Members
AmolBankar -10BM60009
Mayank Mohan-10BM60048
NiloyGhosh -10BM60054
AnuradhaCkakraborthy- 10BM60014

2. 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.

3. 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
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
SunfeastYipee

4. 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

5. 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 SunfeastYipee {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 newflavors? {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

6. Output:

7. 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.