Study of the qualitative composition of chips. Encyclopedia of Marketing Motives for purchasing PRINGLES chips
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To study buyers, both actual and potential, a survey of buyers of the product under study was conducted (Appendix 1). 40 respondents were interviewed. The questionnaire contained 13 questions: about preferences for a certain brand of chips, a certain taste of chips, how often they are purchased, familiarity with different brands, etc.
The increasing pace of life makes so-called fast food products, which include chips, more and more relevant. We invite you to answer a number of questions to obtain information about the position of the product on the market and customer preferences.
1. What do you most often buy to satisfy your hunger?
a) pies, donuts, hot dogs; (72.5%)
b) crackers; (2.5%)
c) chips; (15%)
d) other. (10%)
2. How often do you buy chips?
a) almost every day; (0%)
b) 2-3 times a week; (28%)
c) several times a month; (39%)
d) less than once a month. (33%)
3. For what purpose do you buy chips?
a) have a snack on the go, quickly satisfy your hunger; (39%)
b) just chew when there is nothing to do; (13%)
c) in the cinema/in front of the TV; (33%)
d) I love/I just want; (15%)
4. What package of chips do you usually buy?
a) 28; (75%)
b) 90; (25%)
c) 170 g (0%)
5. What brand of chips do you prefer?
a) Russian potatoes (35%)
b) Estrella; (6%)
d) Lay`s;; (41%)
e) other ___________________________________ (15%)
6. Have you tried Russian Potato chips?
a) yes; (100%)
b) no; (0%)
7. What flavor do you prefer?
a) bacon; (35%)
b) cheese; (5%)
c) Sour cream and dill; (45%)
d) caviar; (10%)
e) other _____________________________________ (5%)
8. What do you pay attention to when choosing chips?
What about the price; (20%)
b) taste characteristics; (52%)
c) popularity of the brand; (20%)
d) manufacturer; (8%)
a) yes; (57.5%)
b) no; (20%)
c) find it difficult to answer (22.5%)
10. Where do you most often buy chips?
a) in shops and supermarkets; (95%)
b) on the street, in shopping stalls; (5%)
11. What is your Age?
A)<18 лет (5%)
b) 18-25 years old (80%)
c) 25-35 years (10%)
d) more than 35 (5%)
12. What is your gender?
a) women (62.5%)
b) husband (37.5%)
13. What is your income level?
a) below average (5%)
b) average (82.5%)
c) above average (12.5%)
The survey involved mainly people aged 18 to 25 years. The study revealed that the involvement in the purchase of chips to satisfy hunger is low (15%). The most popular are pies, donuts and hot dogs (72.5%).
There are four groups of consumers: the most active - those who buy chips almost every day (not a single person was found among the respondents), 28% buy chips 2-3 times a week, 39% buy chips several times a month and 33% of respondents buy chips less often once a month.
Despite the huge number of varieties of chips, 15% cannot explain the reason for buying chips, and 13% eat them when there is nothing to do. 39% buy chips for a quick snack, and 33% perceive chips as a necessary attribute of going to the cinema or watching TV.
As for brand preferences, the leader here is undoubtedly the “Lay`s” brand (41%). This is explained by the fact that the company has greatly promoted its brand and is investing a lot of money.
Calculation of market share of each brand:
Brand Russian potatoes:
X1=(14/40)*100%= 35%
Brand Estrella:
X2=(2/40)*100%=6%
X3=(8/40)*100%=20%
Lay's brand:
X4=(16/40)*100%=41%
According to the calculated indicators, it is clear that the market is oligopolistic and the leading position is occupied by Frito Lay with a market share of 41%; it cannot be called a monopolistic company because Russkart LLC has a market share of 35%, and this is a very significant figure. These companies are the leaders in chip sales in the Russian Federation. Other companies have a much smaller market share. And as a result, less bargaining power in the market.
Conclusion: The Lay`s brand of chips is in greatest demand among consumers. Chips under this brand are preferred by the largest number of respondents. Frito Lay has a leading position in the market, but Russkart is not far behind. The market shares of Fun brand chips and Russian potatoes are large, but Frito Lay actively uses advertising as a means to gain the greatest market power. The Frito Lay company is actively promoting its new flavors, as can be seen from the advertising; every store has advertising for this product. The marketing policy of Russkart LLC is based on the principle of the lowest prices and high quality without carcinogens.
According to managers of retail outlets and chains, potato chips are one of the most popular items at any time of the year, and especially in the summer, because chips are an excellent addition to soft drinks, soda (a favorite dish for children), this is a unique product that at the same time satisfies hunger and does not create a feeling of heaviness in the stomach.
In the practical part of my coursework, I would like to consider the Russian market for potato chips and conduct marketing research in this area.
The purpose of the marketing research is to study the preferences of Nizhny Novgorod consumers of potato chips.
Introduction........................................................ ........................................................ .......3
Theoretical part................................................ ...................................4
1.1 Qualitative data collection methods.................................................................... ....5
1.1.1 Focus group................................................... ....................................5
1.1.2 In-depth interview.................................................... .......................6
1.1.3 Protocol analysis.................................................... ............................7
1.2 Quantitative data collection methods.................................................... 8
1.2.1 Survey................................................... ..............................................8
1.2.1.1 Personal interview.................................................... .........................9
1.2.1.2 Telephone survey.................................................... ................10
1.2.1.3 Postal survey.................................................... ....................12
1.2.2 Retail audit................................................. .......................................13
1.3 Mix methods.................................................... ........................................13
1.3.1 Hall – tests................................................... ......................................13
1.3.2 Home – tests................................................... ..................................14
1.3.3 Mystery shopping.................................................... .............................15
Practical part................................................... ..................................19
2.1.History of potato chips…………….........19
2.2.Research on potato chips……………………………20
2.3.Collection of secondary information……………………………………20
2.4.Collection of primary information……………………………………23
Data analysis and processing......................................................... ...........................31
Bibliography............................................... ...............33
Appendix………………………………………………………………………………34
The company's marketing environment is a set of entities and forces operating outside the enterprise and influencing the enterprise's ability to establish and maintain successful mutually beneficial cooperative relationships with target customers.
The marketing environment is divided into internal and external environment.
The internal environment characterizes the potential of the enterprise, its production and marketing capabilities.
The essence of enterprise marketing management is to adapt the company to changes in external conditions, taking into account existing internal capabilities.
The internal marketing environment includes those elements and characteristics that are located within the enterprise itself:
- § fixed assets of the enterprise;
- § composition and qualifications of personnel;
- § financial opportunities;
- § management skills and competence;
- § use of technology;
- § image of the enterprise;
- § experience of the enterprise in the market.
One of the most important parts of the internal environment is the characteristics of marketing capabilities. They usually depend on the presence of a special marketing service of the enterprise, as well as the experience and qualifications of its employees.
Let's consider the external environment of an enterprise, which consists of a macroenvironment and a microenvironment.
The macro environment of a company includes factors of a demographic, economic, natural, political, legal, technical and cultural nature.
Political and legal factor. Among the political and legal factors that can influence the activities of trading enterprises, it should be noted: political institutions in the country and their development, the state of legislation regulating the economic and business activities of enterprises, the consequences of the influence of foreign policy on competition, as well as demand in the domestic market. At the same time, the activities of each trading enterprise are directly influenced by laws and regulations that regulate business activities and antimonopoly legislation. To this should also be added the necessary state control of the quality and safety of goods.
- 1. Constitution of the Russian Federation.
- 2. Tax Code of the Russian Federation, Civil Code of the Russian Federation.
- 3. Federal Law "On Certification of Products and Services" dated June 10, 1993 N 5151-1
- 4. Law of the Russian Federation “On the Protection of Consumer Rights” dated 02/07/1992 N 2300-1 (as amended on 07/23/2008).
- 5. Federal Law “On Advertising” dated March 13, 2006 N 38-FZ.
- 6. and other laws.
The influence of this group of factors is insignificant. It mainly lies in the influence of legislation, in the requirements of the relevant regulatory and technical documentation, which the quality of chips must comply with.
Demographic factor. According to the results of the 2010 census, the population of St. Petersburg amounted to 4848.7 thousand people, of which 2209.6 (45.57%) thousand were men and 2639.1 thousand (54.43%) were women.
St. Petersburg remains a city with an extremely low birth rate, the level of which for a long time was equal to 1.1-1.2 births per woman on average during her life. In 2009, the total fertility rate increased to 1.4, but this ensures the replacement of the parent generation by the child generation by no more than 70 percent.
In 2010, the total fertility rate in St. Petersburg increased to 12.0 ppm, but was lower than the all-Russian value of this indicator (12.6 ppm).
At the same time, the share of first births has been constantly decreasing in recent years (from 65.3 percent in 2004 to 61.4 percent in 2009), while the shares of second, third and subsequent births are growing.
In 2010 in St. Petersburg, the number of deaths exceeded the number of births by 1.18 times.
Currently, women aged 25-29 years account for 37.2 percent of all births, women aged 30-34 years - 24.0 percent, women aged 20-24 years - 23.3 percent, and younger women - 3.1 percent. Increasingly, children are born to women of late reproductive age (35-39 years): they account for 10.3 percent of all newborns.
In St. Petersburg, the following population dynamics are noted by main age groups:
the share of people over working age in the total population is constantly growing (from 23.5 percent in 2004 to 25.5 percent in 2010);
the share of people of working age is declining (from 63.2 percent in 2004 to 61.6 percent in 2010);
the share of people under working age is also declining (from 13.3 percent in 2004 to 12.9 percent in 2010).
The dependency ratio of the working-age population is growing annually (from 603.5 in 2009 to 621.9 in 2010).
The number of children (aged 0 to 18 years) in St. Petersburg has been constantly declining in recent years. As of January 1, 2009, the number of minors amounted to 658.9 thousand people. and since 2005 decreased by 68.0 thousand people.
In 2009, the decline in the child population stopped and as of January 1, 2010, the number of children amounted to 666.2 thousand people. - 14.5 percent of the total population. At the same time, the share of children and adolescents in the total population did not reach the target value of the standard of living in St. Petersburg for 2010 (14.7 percent).
This group of factors has a fairly strong impact on the chips market, since chips are consumed by certain age groups, and if the demographic situation worsens, this will lead to a decrease in the consumption of chips and therefore cause certain difficulties for manufacturers.
Economic forces. Economic factors include the structure of the economy and its condition, economic activity, inflation rate, income and purchasing power of the population, price level, monetary and property savings, etc.
Inflation in Russia for the period from April 29 to May 5 was 0.2%, from the beginning of May - 0.1%, from the beginning of the year - 3.4%, according to Rosstat materials.
For comparison, in 2013, consumer prices increased by 0.1% from the beginning of May, by 2.5% from the beginning of the year, and by 0.7% in May overall.
Over the past week, prices for pork increased by 2.2%, millet - by 0.8%, chicken - by 0.6%, for sausages, rice, buckwheat and soft candies, coated with chocolate - by 0.3-0. 4 %. At the same time, eggs fell in price by 2.5%.
The increase in prices for fruits and vegetables averaged 0.3%, including cabbage - 5.4%, onions - 2.6%, potatoes and carrots - 1.3% and 1.2%, respectively. At the same time, prices for fresh cucumbers and tomatoes decreased by 3.2% and 1.8%, respectively.
As previously reported, inflation in the Russian Federation in April amounted to 0.9 percent. Based on the results of 2014, the Ministry of Economic Development predicts an increase in consumer prices by 6%.
St. Petersburg is a city that is second only to the metropolitan metropolis in terms of population. At the same time, the northern capital and the region have the highest percentage of citizens being employed. According to statistics, the unemployment rate in the city for the period from June to September 2013 was 1.2%.
In St. Petersburg, at the end of 2013, the average salary exceeded 37 thousand rubles, Chairman of the City Committee on Economic Policy and Strategic Planning Anatoly Kotov said today at a meeting of the city government.
According to him, real wages increased by 6% over the year, growth was recorded for all categories of public sector employees. As A. Kotov said, most of the funds are used by city residents to purchase goods and pay for services.
He noted that St. Petersburg still experiences a shortage of personnel in blue-collar occupations, and therefore it is necessary to place emphasis on increasing the level of labor productivity and developing high-tech industries.
More than 20 thousand people are registered with employment services, 9 thousand of them have only unemployed status.
The influence of this group of factors is the strongest, such as the level of inflation, unemployment, and increased prices for raw materials for production. All this is very important for chip manufacturers and has a very strong impact on them.
Cultural factors. Society shapes and directly influences a person’s worldview. In addition, any society consists of different social groups and strata, which are also far from homogeneous. Marketing decisions made by a trading enterprise are strongly influenced by: the degree of commitment of each member of society, who is the final buyer, to the traditional cultural values dominant in society; the presence and emergence of various subcultures within a single culture; openness to the perception of secondary cultural values.
For us, the development of the culture of society has a significant impact, since for many it has become common to eat chips as a quick snack, as well as in front of the TV while watching.
Natural factor. St. Petersburg is characterized by a humid, maritime climate with warm summers and unusually moderate winters for such a geographical latitude. Throughout most of the year, days with cloudy, cloudy weather and diffuse lighting predominate. As a rule, the temperature in the central areas of the city is higher than in the outskirts and suburbs; the temperature difference can reach 10 °C.
In terms of the abundance of water, St. Petersburg ranks first among the cities of the Russian Federation and one of the first places in the world. The Neva River, flowing from Lake Ladoga, carries its waters within the city for 28 km; Before flowing into the Neva Bay of the Gulf of Finland, it forms a wide delta. The width of the river is 340-650 m (max. - 1250 m, opposite the port); depth 8-23 m.
St. Petersburg is the largest transport hub in the north-west of Russia and the second in the country after Moscow. A number of important railways and highways converge in the city, there are large sea and river ports; Pulkovo Airport, located on the southern outskirts of the city. There are two passenger terminals - Pulkovo-1 (transportation within the CIS countries) and Pulkovo-2 (international transportation).
Negative factors such as air pollution from car exhaust and sand-salt dust, overcrowding, noise, and daily stress all lead to a deterioration in the quality of life in the city and a deterioration in the health of St. Petersburg residents. Average life expectancy in St. Petersburg (for men) has decreased to 56 years.
This group of factors influences producers, since climate, location, and the presence of transport hubs largely contribute to their development.
Scientific and technical factors. Scientific and technical factors relate to the possibilities of producing new products and carrying out marketing research in accordance with the achievements of scientific and technological progress: marketing and advertising on the Internet, bringing the product to the consumer and after-sales service based on modern technologies, etc.
Scientific and technical factors include:
- - acceleration of scientific and technological progress;
- - the emergence of limitless opportunities in the creation of new products, biotechnologies, robotics, etc.;
- - increased allocations for R&D;
- - tightening state control over the quality and safety of goods.
This group of factors influences the chips market, as the emergence of new technologies contributes to the emergence of new methods for producing chips.
The firm's microenvironment includes the firm's relationships with suppliers, intermediaries, clients, competitors and contact audiences.
Suppliers are subjects of the marketing environment whose function is to provide partner firms and other companies with the necessary material resources.
Intermediaries are firms or individuals who help manufacturing businesses promote, deliver and sell their products to consumers.
Consumers are firms, individuals or their potential groups who are ready to purchase goods or services on the market and have the rights to choose a product, a seller, and present their conditions in the purchase and sale process.
Contact audiences are government and management bodies (media workers, public parties and movements, trade unions, representatives of financial circles).
Competitors are firms or individuals that compete, i.e. acting as a competitor in relation to other business structures or entrepreneurs at all stages of organizing and carrying out business activities.
Foreign companies have always been present on the Russian chips market. However, if in the early 2000s domestic producers had the opportunity to compete on price, now there has been a serious increase in production costs. At the same time, the cost of Russian chips - for example, TM "Super Chips", "Our Potatoes", "Russian Potatoes" (Russkart LLC, Moscow Region), "Moscow Potatoes" (Company "Russian Product"), "Three Crusts", " Siberian Coast", "Birka" (KDV Group Holding) - almost equaled the cost of such global brands as Lay's, Cheetos (PepsiCo) and Estrella (Mondelez International).
The main producers of chips - Mondelez International, PepsiCo, KDV Group, Russkart and Russian Product** - account for about 70% of the market in volume terms. According to experts, the share of KDV Group is 10-12%.
The domestic snack market is divided between several major players. Having forced small local manufacturers out of the market, large companies entered into competition with each other.
About 50% of the Russian snack market in physical terms falls on the share of the five largest players.
The top five leaders controlling the snack market as a whole include such large foreign players as Frito-Lay Inc. and Kraft Foods Inc. These companies own the most famous brands on the Russian market: Cheetos, Lay's (Frito-Lay) and Estrella (Kraft Foods). It is also worth noting that Kraft Foods is a leader in advertising influence on consumers.
A distinctive feature of all leading market participants is the presence of their own production, which significantly reduces costs, as well as an established distribution system, which allows them to constantly expand their geography.
We will consider and analyze competitors in the chips market among well-known brands, which are presented in Table 1.
Table 1. Analysis of competitors in the chips market
|
Characteristics |
Chips brands |
||||
|
Russian potatoes |
|||||
|
Flavoring additives |
with bacon flavor; with sour cream and dill flavor; with cheese flavor; with sour cream and onion flavor; with chicken flavor; with garlic flavor |
with the taste of country sour cream and onions; with soft cheese flavor (75 g, 140 g); with the taste of fragrant dill; with smoked bacon flavor (75 g, 140 g); with the taste of juicy onion and cheese (150 g, 200 g); with paprika and sour cream flavor (140 g); with crispy pizza flavor (75g); with salt (140g). |
With flavors: bacon, cheese, red caviar, lightly salted cucumbers with dill, green onions, porcini mushrooms with sour cream, crab, sour cream and herbs, Lay's Max: sour cream and onion, mega bacon, sour cream and cheese |
With flavors: bacon, onion and cheese, cheese, classic, paprika, sour cream and dill, sour cream and onion |
Original, sour cream and onion, cheese, paprika (160g), barbecue, bacon (160g), wasabi |
|
Package size |
|
|
|
||
|
Best before date |
8 months |
9 months |
9 months |
15 months |
6 months |
|
|
|
|
|
|
|
PREMIUM POTATO CHIPS |
Super chips are prepared without:
SUPER chips with sour cream and dill flavor; SUPER chips with bacon flavor; SUPER chips with cheese flavor; SUPER chips with roasted goose flavor; SUPER chips with onion flavor; SUPER chips with salt and pepper flavor |
Estrella Cheese Tortilla; Tortilla Chips Sweet Chili; Corn chips with cheese and chili flavor |
|||
|
Package size |
|
||||
|
Best before date |
6 months |
7 months |
|||
|
150g - 75 rub. |
||||
|
"Golden Potatoes" with flavors: onion, sour cream, cheese, bacon (only 125g) |
With the taste of hard cheese; with salami flavor |
Lay's Strong smoked cheese, hunting sausages, jellied meat with horseradish |
Cheesy Nacho Cheese; Kickin' Sour Cream & Onion |
||
|
Package size |
|
||||
|
Best before date |
5 months |
8 months |
5 months |
6 months |
|
|
140g - 60 rub. |
|
160g - 82 rub. |
||
|
It uses various channels to promote Lay's chips: advertising on television, radio, on the Internet, outdoor advertising, advertising in the press. It sponsors evening television broadcasts of feature films, and places its logo in popular television weeklies. The company allocates significant funds for television advertising. Viewers are offered only game videos at the level of world standards. |
Pringles XTRA invites you to the KARO cinema chain! |
The study was conducted as part of the Junior Achievement youth educational program with the support of Procter & Gamble. The purpose of this study was to obtain information about what young people think about Pringles chips produced by Procter&Gamble, about the established image of this brand, and the strengths and weaknesses of Pringles chips.
A marketing study of the Pringles brand image among young people was supposed to provide answers to the following questions:
Awareness among young people about the PRINGLES brand;
Young people's opinion about PRINGLES chips;
The established image of the PRINGLES brand among young people;
Frequency of purchase of PRINGLES chips by young people;
Reasons for purchasing PRINGLES chips;
Reasons for not eating PRINGLES chips;
Weaknesses and strengths of PRINGLES chips from the point of view of young people.
Since the reason for conducting this marketing research was a decrease in sales of Pringles chips, the marketing department put forward the following working hypotheses for this decrease:
a) the high price of Pringles chips compared to chips of other brands;
b) strong competition from other foreign and Russian companies with cheaper products;
c) poor perception of the brand by consumers;
d) low popularity of the brand;
e) incorrectly developed brand image concept.
A questionnaire was developed consisting of 10 substantive questions, 1 open question in the form of selecting word associations and a block of questions on socio-demographic data.
The distribution of the sample by age is as follows (Fig. 3):
Of the respondents, 59% are female respondents, and 41% are male. In the following, all analytical tables provide data on the distribution of answers depending on the gender of the respondents, since perception depends on this factor. 20
Rice. 3. Age profile of respondents
3.2. Young people's awareness of the Pringles brand of chips.
Respondents were asked the question: “NAME THE BRANDS OF CHIPS THAT YOU KNOW BEST.” This question asked for spontaneous recall of chip brands without prompting. According to the degree of popularity among young people, chip brands were distributed as follows (Table 1, Fig. 4)*.
Fig.4. The most famous brands of chips (spontaneous recall)
Table 1.
The most famous brands of chips (spontaneous recall)
|
Name the brand of chips you know best? |
Male (%) |
Female (%) |
|
As you can see, the Pringles brand of chips is in first place, Lays is in second place. It follows that the main competitor to Pringles in the chips market is this brand. Moreover, it is interesting to note that Lays chips are preferred mainly by males, and Pringles by females. This is explained by the fact that the company produces diet chips, which attracts female customers.
The next question (based on a prompt) was to reveal which of the proposed brands of chips is most familiar to consumers (Table 2, Fig. 5). 21
Table 2.
The most famous brands of chips (recall by prompt)
Figure 5. The most famous brands of chips (recall by prompt)
If the results of spontaneous recall of chip brands indicate that Pringles is the most famous brand among consumers, then cued recall shows that Pringles occupies first place in the minds of consumers, although again it is clear that the main competitor is Lays.
Pringles purchase frequency
Of those surveyed, 66.4% answered that they buy Pringles chips, and 41.3% of them are female (Table 3).
From Fig. 6 it is clearly seen that the majority (61.4%) buy Pringles chips irregularly, from time to time. 22
Table 3.