Consumer Behavior

TEA

10/13/2009

Submitted To: Natasha Muzamil Submitted By: Adil Nizami Adnan Ghazi Hassan Amin Ch Humayun Ashfaq Imran Alamgir LAHORE SCHOOL OF ECONOMICS Zaineb Hassan 2

Consumer Behavior

TEA

Table of Content
Topics Introduction Motive Methodology Questionnaire (Sample) Representation of data Consumer Profile Page no. 3 3 4 6 15 36

TEA

CONSUMER PROFILE

Submitted to: Natasha Muzamil Submitted By Adil Nizami Adnan Ghazi Hassan Amin CH Humayun Ashfaq Imran Alamgir Zaineb Hassan

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Introduction
The product category which we chose to discuss TEA .Tea is the most popular drink in the world in terms of consumption. Its consumption equals all other manufactured drinks in the world including coffee, chocolate, soft drinks, and alcohol put together.It is an everyday product which is an essential purchase of every household. It is intended for personal consumption. In many cultures including our own culture, tea is often used as a consumption product which is affordable by every class. It may be consumed early in the day to heighten alertness; it contains theophylline and bound caffeine. The per capita consumption of tea in Pakistan is around one kilogram. The demand for tea is growing year by year in the wake of high population growth. China and India are one of the top tea producers of the world with Sri lanka accompanying them. Pakistan as one of the largest potential market for Tea presently imports 150,000 tons of tea per year. It is feared that the number will reach 170,000 tons by 2010 with growing trend. The annual tea imports come to Rs15 billion which is adds up to the deficit of Balance of payment. . Thus there is urgent need to produce tea in Pakistan.

Motive
Our research project is based on the analysis of consumer behavior. Consumer Behavior is the understanding of how and why the product is consumed by the consumer. Consumer Behavior may involve the observable behavior about the amount of product purchased, when, with whom, by whom and how the purchased is being consumed. We have conducted research to evaluate the preferences, lifestyles, buying trends and consumer tastes of tea drinkers.

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Methodology
There are different ways of conducting a research. The most useful methods or techniques which are mostly widely and commonly used in conducting the research are as below conducting the research are as below

Appreciative Inquiry Case Study Focus Groups Interview Design Interviewing (face to face) Questionnaires Surveys Analyzing, Interpreting and Reporting Results

The above mentioned methods are known as public data collecting tools. It is important for marketers to recognize the product that can satisfy the range of consumer need and marketers also need to understand the need of different consumer segments and most importantly the factors which affect the consumer purchasing behavior for example the design of the product or the appealing message which comes with the product and off course advertisement. In our assigned research project, we have to make a consumer profile for the product tea. Tea comes under FMCG (fast moving consumer goods). Hence we have decided to choose questionnaires methodology to collect the public data. Questionnaires are an inexpensive way to gather data from a potentially large number of respondents. Often they are the only feasible way to reach a number of reviewers large enough to allow statistically analysis of the results. A well-designed questionnaire that is used effectively can gather information on both the overall performance of the test system as well as information on specific components of the system. If the questionnaire includes demographic questions on the participants, they can be used to correlate performance and satisfaction with the test system among different groups of users. We have decided to choose closed ended questions in our questionnaire because respondents are more willing to answer closed ended questions. Closed format questions offer many advantages in time and money. By restricting the answer set, it is easy to calculate percentages and other hard statistical data over the whole group or over any subgroup of participants. As the limitations of our project define it is almost impossible to cover up whole populations for the survey to overcome this inefficiency. Hence we have decided to choose sampling method while filling out these questionnaires. In order to get more accurate result, we have randomly distributed these questionnaires among different age groups, among the different socio-economic class groups and between off course two different genders. In our selected methodology of research, we tried to manage these steps required to design and administer a questionnaire include:
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Defining the Objectives of the survey Determining the Sampling Group Writing the Questionnaire Administering the Questionnaire Interpretation of the Results

Questionnaires are versatile, allowing the collection of both subjective and objective data through the use of open or closed format questions. Modern computers have only made the task of collecting and extracting valuable material more efficient. However, a questionnaire is only as good as the questions it contains. There are many guidelines that must be met before your questionnaire can be considered a sound research tool. The majority deal with making the questionnaire understandable and free of bias. Mindful review and testing is necessary to weed out minor mistakes that can cause great changes in meaning and interpretation. When these guidelines are followed, the questionnaire becomes a powerful and economic evaluation tool. We have arranged our questions in the questionnaire with the sequence of most important questions regarding product or objective at the beginning then covering marketing four Ps (product, price, placement, promotion) respectively followed by the questions about consumers/ respondents personality questions. We include personality trait questions to get more accurate profile of consumer because consumers deeply held cultural values and vary in the importance they attach to worldly possessions which has impact on their priorities and behavior. In the end, we evaluate and interpret the results by using pie charts and make graphical and statistical calculations to conclude our research. A questionnaire is a powerful evaluation tool and should not be taken lightly.

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Questionnaire

Tea- An Everyday Product Questionnaire

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This questionnaire concerns your attitude towards the purchasing behavior for TEA, lifestyle and consumer preferences.

Your honesty is highly appreciated (Tick the option that coincides with your opinion and please tick only one for every answer) Q. Do you drink Tea 1. Yes 2. No Q. How often do you drink Tea 1. 2. 3. 4. Once in a day Breakfast/lunch/dinner Occasionally Regularly in a day

Q. How do you perceive tea 1. 2. 3. 4. A new idea Must product Fashion symbol Necessity

Q. Which brand of tea do you use? 1. 2. 3. 4. 5. Broke bond Lipton Tetley Tapal Other (if any please mention the name) ------------------------------------------------

Q. Does your preference for tea depends on 1. 2. 3. 4. 5. Taste/ aroma Price Availability Brand image Texture
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Q. If Texture then what kind of texture do you prefer 1. Danedar 2. Light 3. Strong Q. Where usually do you have your tea? 1. 2. 3. 4. 5. Home Workplace On the move Caf/ restaurant Other ( Please specify) --------------------------------------

Q: Does the price have influence in your buying behavior of tea? 1. Yes 2. No Q: W hat range of price do you prefer for your favorite brand of tea? 1. 2. 3. 4. Rs. 100-110/500 gm Rs. 110-120/500 gm Rs. 120-130/500 gm Rs. 130-140/500 gm

Q. Who in your house makes the purchasing decision of tea 1. 2. 3. 4. 5. 6. Husband Wife Children Servants Yourself Others (please specify) ---------------------------------------------

Q: Do you compare price of different brands before you buy? 1. Yes 2. No Q: If discounts and other promotions are offered to you, does it encourage you to buy more tea? 1. Yes
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2. No Q: Do you change your tea habits if your favorite brand becomes more expensive? 1. Yes 2. No Q: Would you prefer expensive high quality tea or good tasting cheaper tea? 1. 2. 3. 4. Quality comes with price Taste matters the most Price is very important Price and quality matter simultaneously

Q: If the price of the Tea was much Higher than those of your substitute (Coffee)? Would you still have it? 1. Yes 2. No Q. How often do you buy tea 1. 2. 3. 4. Daily Weekly Monthly Once in a while

Q. Where do you make your purchase of tea 1. 2. 3. 4. General Store Grocery Store Corner shops Other (please specify) -------------------------------------

Q. Is your preferred tea readily available at all convenient stores? 1. Yes 2. No Q. Will you shift to any other brand if your preferred brand is not available easily? 1. Yes 2. No
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Q. Does advertisement have an effect on your purchasing decision 1. Yes 2. No Q. Which promotional campaign effect your purchasing decision the most 1. 2. 3. 4. 5. TV ad Billboards Newspapers Radio Word of mouth

Q. Your preferred tea brand is 1. 2. 3. 4. Advertised extensively Displayed at eye level aisles in super market Is a status symbol Family tradition

Q. When you think of tea which brands TVC clicks your mind 1. 2. 3. 4. 5. 6. Broke Bond Lipton Tapal Tetley A1 Other (please specify) -----------------------------------

Q. Does availability of different Packaging sizes have an impact on your sale 1. Yes 2. No Q. Which type of packaging do you prefer 1. 2. 3. 4. 5. Glass jar Plastic jar Tetra packing Paper bag Tea bags

Q. Which color do you associate with tea

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1. 2. 3. 4. 5.

Red Yellow Green Blue Other (please specify) -------------------------------------

Q. You prefer tea over 1. 2. 3. 4. 5. Coffee Juice Water Soft Drinks Herbal tea

Q. what do you do in your free time? 1. 2. 3. 4. 5. Spend time with family Watch Tv/movies Surf on net Hang out with friends Read books/magazines

Q. What type of movie/shows do you like watching 1. 2. 3. 4. 5. 6. Comedy Family Horror Music Soaps Romantic

Q. What is your favorite working out method? 1. 2. 3. 4. 5. Jogging Aerobics Walk Swimming Gym

Q. Which Restaurant do you usually visit? 1. Pizza hut

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2. 3. 4. 5. 6.

Zouk Salt n Pepper Freddies Village Other (please Specify) ----------------------------------------

Q. where do you usually go for your vacation 1. 2. 3. 4. Abroad Northern Areas Farmhouse Stay at home

Q. How frequently do you go for vacation 1. 2. 3. 4. Once a year Twice a year Once in a blue moon Depends on mood and time

Q. You like to spend you spare time with 1. 2. 3. 4. 5. Parents Siblings Friends Colleagues Alone

Q. where do you live (locality)? 1. 2. 3. 4. 5. 6. Defence Model Town Gulberg Garden Town Cantt Other -----------------------------

Q. what is your qualification? 1. Under graduate

Consumer Behavior

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2. 3. 4. 5.

Graduate Post graduate PhD. Other

Q. What is your profession? 1. 2. 3. 4. 5. 6. 7. Doctor Teacher Social worker Manager House wife Student If Other , please specify --------------------------------------------

Q. Marital status 1. Single 2. Married 3. Married with kids Q. Gender 1. Male 2. Female

Q. what is your Age? 1. 2. 3. 4. 18-25 years 26-35 years 36-45 years 46- above

Q. In which income bracket does your income lies? 1. 20,000-40,000 2. 40,000-60,0000 3. 60,000-above
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Thank You! This information is required for a consumer profile survey.

Representation of Data
Q1 Q2

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Q3

Q4

Q5

Q6

Q7

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TEA

Q9

Q10

Q11

Q12

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Q13

Q14

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Q16

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Q18

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Q19

Q20

Q21

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Q23

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TEA

Q25

Q26

Q27

Q28

Q29

Q30

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TEA

Q31

Q32

Q33

Q34

Q35

Q36

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Q37

Q38

Q39

Q40

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Q41

Consumer Profile
Out of 60 respondents 46 people stated that they drink tea. Ideal consumer of tea is Male who is student (undergraduate) by profession, single with age between 18-25 years and has a net income of 60,000 and above. He thinks tea is a necessity of life but he likes to drink tea once in a day at home. His preferred brand is Lipton and he prefers it coz of its taste and aroma. Price has a major impact on his buying behavior whereas he perceives Rs.120-130/500gm as the ideal price. In his house, the lady (wife) of the house makes the most purchase of tea. He does not compare prices of different brands but tend to buy more tea 23 LAHORE SCHOOL OF ECONOMICS

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when discounts or special promotional offers are being offered. For him taste matters the most but he can switch to another brand if Lipton (his preferred brand) becomes more expensive. He is such a loyal consumer of tea that even if tea becomes expensive than its substitutes, he will still have it. He usually shops monthly for tea from grocery store. Advertisement does have an impact on his purchasing decision but to a limited extent whereas availability of Lipton (his preferred brand) is one of the important factors that convince him to stick to the brand as is it readily available at all convenient stores. He likes Liptons extensive advertising on TV and even has the recall factor. Plastic Jar packaging is favored by him. As he is a drinker of Lipton so therefore he associates yellow color with tea and usually prefers tea over herbal tea. He chooses to watch comedy shows and movies in his free time. Living in a diet conscious world he likes to walk in his workout session. His spends his spare time with friends and likes to eat at Salt n Pepper with them. He goes abroad once a year for vacation.

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