PAPER.....PAS JIGAR.R.RAJPURA.....X-01824544.........FINAL
TERM 217
PROBLEM STATEMENT:
TO ESTIMATE THE MARKET POTENTIAL OF NEW-YORK STATE FOR HERBAL
BASED ENERGY SUPPLEMENT PRIOR TO THE MARKET LAUNCH
HYPOTHESIS:
NULL HYPOTHESIS: There is no possible market for the sale of herbal based energy
supplement in the state of New York.
ALTERNATE HYPOTHESIS: There is substantial possibility for demand and sale of
herbal based energy supplement in the state of New York.
METHODOLOGY ADOPTED IN DATA COLLECTION:
Data to be collected was PRIMARY DATA by SURVEY TECHNIQUE and following
factors were taken in consideration while collecting primary data:
1) Demographic characteristics.
2) Lifestyle characteristics.
3) Knowledge
a) Demographic: Parameters like age, sex, occupation, martial status were
analyzed by asking generalized questions in the questionnaire. These were
primarily to define the parameter of age dependent possible energy
supplement users and were helpful to interpret consumers responses.
b) Lifestyle characteristics: Personality characteristics were also importantly
analyzed by placing an advertisement of the energy supplement labeled
COMING SOON (ad attached) and consumers response to the ad was noted
in the form of a rating scale classified as:
NOTICE THE AD.
DID NOT NOTICE THE AD.
GAVE A PASSING COMMENT TO THE AD.
The ad was place at the POS (point of sale) and the expression of the consumer was
noticed and noted with prior consent to the retailer of shop under study.
c) Knowledge: The ad is now removed from its position and then the consumers
asked about the ad of such a drink going to be available in the market. This is
part of AIDED RECALL system for knowing the knowledge of the consumer
about the drink. This step is carried out after a week from the display of the
ad. The ad is on display for 4 days alternatively in the week and the
following week this AIDED RECALL TEST is carried out to determine the
awareness of the consumer towards the new upcoming energy supplement.
The sample of people to be surveyed where randomly listed from the database obtained
from vitamin Shoppe of all the 5 boroughs for #A and people to be surveyed for #B were
randomly determined from the locality having at least one convenience store providing
the energy supplements. Data to be used for analysis was collected primarily by the
questionnaire method.
STATISTICAL ANALYSIS OF DATA COLLECTION: (graphs
attached)
The data collected was primarily analyzed by graphical method by interpreting the
energy levels attained from the coding chart attached.
Graphs were plot between:
1) Energy levels Vs Borough and #A and #B to establish the relation of boroughs
with high potentials of possible sales the of energy supplement.
2) Energy levels Vs Age of the population in the five boroughs to establish the
relationship between the age group with lesser energy levels to be considered as
target population.
3) Energy levels Vs Occupation to establish a relation as to which occupation
people have lesser energy levels, again to be set as target population.
CONCLUSION BASED ON DATA ANAYLSIS:
The conclusion resulting the data analysis states that the BROOKLYN has maximum
population taking vitamins and QUEENS has maximum population no taking
vitamins. According to the graph 2, the age group of 20-30 years is the target
population.
INFERENCE DRAWN TO RESEARCH PROBLEM:
The study was based to classify he population of New York in 5 boroughs in #A the
users of energy supplements and #B the non-users. The study determines the energy
levels of the consumers and possible consumers. So the study was primarily based
on the identifying the possible target population and increase the consumer database by
incorporating the methods to enclave non users too. The study thus comes to the
inference that there exists a major population that has lower energy levels but is not
using any energy supplements and they can be made to increase sales by appropriate
targeted advertisements and marketing strategies.
LIMITATIONS OF THE STUDY:
The study examines only the population catered by vitamin Shoppe (#A sample)
and the population around convenience stores providing energy supplements (#B
sample) which limits other geographical locations in the entire state of new York
including population dense locations like upstate New York.
Possible ethical/racial issues aroused due to questionnaire lead to error in
consumer opinion and judgments.
The statements records attitudes and beliefs rather than actions: what people
think may not be what they necessarily do. People often do not know what they
will do in the future and what they think they will do is often very different from
what they actually do. Also, in a fast-changing environment, extrapolation from
the past is highly unreliable.
Product is not TEST-MARKETED practically, just applied in theory. This means
that potential and actual sales may be lost because it was not marketed
anywhere else initially.
All calculations are based on energy levels ; these may not exactly be deduced
what they stand for in the coding chart.
Code for the evaluation of ENERGY levels:
CATEGORY
PARAMETERS
ENERGY SCORE
SCORE
e1
4
Mild
e2
3
Occasional
e3
2
Regular
e4
1
1 MEAL
e4
4
2 MEALS
e2
3
3 MEALS
e3
2
1 Cup
e1
4
2 Cups
e2
3
3 Cups
e3
2
Any amount
Caffeine
Sedentary
Diet
Exercise
e4
1
NO ALCOHOL
e1
4
Alcohol