Acceptance of Traditional Breakfast Items: A HUL Case Study

Desklib provides past papers and solved assignments. This report analyzes consumer acceptance of HUL's traditional breakfast items.

Non-technical Report

EXECUTIVE SUMMARY
This report is produced to analyse the acceptance level of Traditional breakfast items
launched by HUL. The qualitative study has been involved using the Literature review and
the open-ended questionnaire. HUL has launched the breakfast items like Khichdi, Upma
and many more that are made of the natural ingredients and are free from the
preservatives. The report has been prepared to analyse the acceptance of the product
among the Indian customers and to assess the success rate of the launch of the product. The
data has been collected from the literature review and fro, the open-ended questionnaire.
The data has been analysed and findings have been drawn for the research problem. The
suggestions have also provided to increase the sales and acceptance level among Indian
consumers.
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Table of Contents
EXECUTIVE SUMMARY............................................................................................................. 1
RESEARCH TOPIC...................................................................................................................... 3
INTRODUCTION........................................................................................................................3
RESEARCH DESIGN....................................................................................................................4
METHODOLOGICAL CHOICE................................................................................................. 4
STRATEGIES.......................................................................................................................... 4
TIME HORIZON..................................................................................................................... 5
TECHNIQUES AND PROCEDURES..........................................................................................5
DATA COLLECTION................................................................................................................... 5
QUALITATIVE RESEARCH...................................................................................................... 5
QUESTIONNAIRE...................................................................................................................5
LITERATURE REVIEW (SECONDARY RESEARCH)....................................................................6
SAMPLING................................................................................................................................ 8
DATA ANALYSIS........................................................................................................................ 9
FINDINGS................................................................................................................................14
RECOMMENDATIONS.............................................................................................................18
CONCLUSION.......................................................................................................................... 19
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RESEARCH TOPIC
To assess the acceptance level of “Traditional breakfast options” launched by Hindustan
Unilever in the market of Indian consumers
INTRODUCTION
The purpose of this study is to assess the performance and sales of the “Traditional
Breakfast options” launched by Hindustan Unilever. Hindustan Unilever the largest
consumer goods firm of India has planned to launch the traditional South Asian breakfast
options like Upma, Khichdi and Pongal. The entry of HUL in this segment is the pre-emptive
move that aims at to compete for the brands like Patanjali which sells corn-flakes, Dalia and
oats and it has also planned to launch the similar products this year. HUL which sells brands
such as Kissan and Knorr has clocked nearly Rs. 1147 cr from its division of foods during the
fiscal year 2018. Consumers are gradually shifting from Western cereals to healthier or
Indian alternatives. And thus the HUL has launched the healthier breakfast option that has
catered the demands of the customers and also contributed a lot to the food division of
HUL. The new products that are made up of millets such as bajra and jowar under the
Ayurveda brand of HUL “Ayush” will compete with Kellogg, MTR, Marico and PepsiCo in the
market of 3000-crore breakfast market. The HUL expects to offer the product made form
preservatives free and form the natural ingredients that will appeal the health-conscious
busy Indian professionals (FnBnews.com, 2018).
RESEARCH STATEMENT OR PROBLEM
The research statement for this project is to assess and analyse the acceptance level of the
new launch of “Traditional breakfast options” by Hindustan Unilever among the Indian
consumers.
Research Question
The research questions that will be analysed during the research project are as follows:
1. What is the acceptance level of “traditional breakfast Options” launched by
Hindustan Unilever in India?
2. What is the contribution of “traditional breakfast Options” in increment of overall
sales of Hindustan Unilever in India?
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RESEARCH DESIGN
The research design acts as the structure of the research process. The research design is the
procedure to identify the process and steps to undertake and carry out the study. It involves
various steps and process in a continuous manner that helps in achieving the research
objectives. The research design of the current research project is descriptive and the
investigator is researching the various journeys of users and identifying the set of factors
that will provide positive outcomes and result for the business. The main goal is to attain the
accurate results and data that is derived from the data collected which can be utilised for
building the proper cases and findings for the research project (Silverman, 2016).
METHODOLOGICAL CHOICE
The selected method for this current study is a qualitative method that involves the use of
secondary research and survey with the help of an open-ended questionnaire. The different
literature will be reviewed and analysed to provide deep insights into the problem. Various
journals, articles, papers, online publications and many other relevant articles that have
been reviewed earlier will be studied in this research study. The secondary research process
includes different research material and data that are related and relevant to the research
topic and objectives (Sekaran and Bougie, 2016). The secondary research will be conducted
for the successful implementation of the research study. The fifty research articles and
papers will be studied and reviewed for gaining the overall understanding of the research
topic and problem. The qualitative research will provide accurate and reliable data that can
be applied to find the solutions. The open-ended questionnaire will be prepared for gaining
the deep insights about the acceptance of the launched among the customers and this will
also provide the deep understanding about the sales of the product and its contribution to
the growth and overall performance of the Hindustan Unilever. Thus the research with the
help of secondary research will help in providing the data to the research questions and
providing the solutions to the problem (Bell et al., 2018).
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STRATEGIES
With the help of a combination of the different strategies for the different research design
was beneficial for this research study. The qualitative research has been employed to
address the research questions and also the open-ended questionnaire has been also being
employed to understand the perception and acceptance level of the launch of the new
product by the Hindustan Unilever (Flick, 2015).
TIME HORIZON
A time frame of cross-sectional nature has been applied in this research due to the limited
budget and time available.
TECHNIQUES AND PROCEDURES
Secondary research has been used in this research work that provides solutions to research
problems.
DATA COLLECTION
QUALITATIVE RESEARCH
For this proposed research design, a qualitative research approach has been used and
considered as the efficient and effective as results have been obtained from the secondary
research which has been reviewed and studied earlier. Moreover, the opinions, perceptions
of the managers and employees of the organisation have also taken for gaining the
understanding about the acceptance and performance of the new launch of the Hindustan
Unilever this research project. The research is focused on assessing the performance of the
new launch of “Traditional breakfast Options” by Hindustan Unilever” and to have an
understanding of the performance of the product (Smith, 2015).
QUESTIONNAIRE
Qualitative data has been obtained in the form of online open-ended questionnaire to
provide the precise data and information in a structured manner and format. The survey
was distributed via Google drive to access the targeted audience. This process was selected
as the internet has made the collection of data more flexible and easier.
Structure of the Questionnaire
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The population are the respondents that are the employees and managers of the Hindustan
Unilever. The survey was started with the screening of the questions which is needed to
collect the valid responses. The questionnaire was in the form of the open-ended questions
that were asked from the respondents to gain the insights on all the opinions and views on
the launch of the “Traditional breakfast option” and its sales and performance in the
company.
The open-ended questionnaire for this research study is:
1. What is the market of the packaged food in India?
2. Does consumers of India are switching from the western cereals to healthier or Indian
alternatives?
3. What is the opinion of managers regarding the launch of “traditional breakfast option” in
catering the need of Indian consumers?
4. What are the problems faced by the company in launching the product?
5. How does the “Traditional breakfast Option” launched by HUL cater to the needs of the
Indian consumers?
6. Does the launch of “traditional breakfast option” is successful for HUL?
7. Does the “traditional breakfast option” have increased the overall sales of the food
segment of the HUL?
8. What is the level of satisfaction of consumers for “traditional breakfast option” of HUL?
9. What is the perception of Indians for branded ready to cook items for the breakfast?
LITERATURE REVIEW (SECONDARY RESEARCH)
According to the Malviya (2018), the packaged food market is heavily tilted towards the
salty snacks and biscuits that together is nearly Rs. 50,000 in the size. The other food
segment does not make the much progress like the breakfast cereal industry as it has not
been successful in convincing the Indians to switch their eating habits. Indians always prefer
to choose the health to taste. There are some of the products which have been hit and
famous due to their lifestyle trends and convenience because Indians always strive for
Protein over the carbohydrates (Vecchio et al., 2014).
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Vecchio et al (2014) have stated that the majority of Indian population consumes
homemade food. Nevertheless, consumption of non-branded and branded processed food
is increasing due to increase in urbanisation, increasing in the number of working females,
lack of time, need for convenience, the rise in per capita income, increasing level of
incomes, desire for quality, changing taste preferences, willingness to try the new cuisines
etc. The food industry is among the largest industries in the country and it is also among the
emerging markets with the one billion populations. Instant foods are trending among Indian
consumers due to its wide benefits and health advantages (Sumithra and Sila, 2007).
Gautam and Gangal (2011), has stated that Indian people are shifting towards the packaged
breakfast options and the main reason for the switching is the want of Indians for home
cooked and traditional breakfast for their easier solutions like eating options or ready to
cook. Some of the cereal segments are also growing well as due to its perception and
opinion for the healthy breakfast (Titus, 2015). India as a country offers a high variety of
differences like pulses, cereals, vegetables, milk products, fats, oils and nuts etc. Milk and
products of dairy items are an important part of the diet of India. Moreover, diets rich in
cheese, milk, yoghurt and all similar products provide important minerals and vitamins
essential for human development and growth. The health effects obtained from the
products of milk are benefited for the human body and also help in the prevention of many
diseases. Cereals are the most economic energy source that is the ailment for the low-
income social class people of India. Vegetables and fruits that occupy about 65% of
cultivatable land are consumed by less frequently by the Indian population (Sumithra and
Sila, 2007).
Counihan and Van Esterik (2012) has depicted that the other brand Quaker launched by
Pepsico that sells oats mixes which are ready-to-cook in different variants such as lemon and
masala. The brand has been extended to the cookies also. Along with this, Nestle India has
also launched a new range of cereals for the breakfast that offers high-quality breakfast
options for Indian consumers. The brand by Nestle is NESPLUS cereals of breakfast that
comprises a set and combination of the multigrain and wholegrain and it aims at offering
the high-quality options of breakfast for the Indian consumers. In past years both home-
grown firms and multinational such as Marico, Bagrry’s, MYR foods, ITC etc. all striving for
the niche market in the Indian breakfast market with the different and various food markets
(Choo et al., 2004).
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According to the research market, the breakfast cereal of India has grown at an annual rate
of more than 22% since 2010. The breakfast market of India is said to be worth about Rs.
3000 Crore that is ($440m). It has been also found that the hot cereals like oat bran, oats
and wheat bran have been growing quickly due to the prevailing preference for the hot
breakfast in India. With the greater level of higher incomes and urbanisation, western India
had the biggest market share. Cereals that are the type of Cornflake dominates the market
share that is followed by muesli and oats which are also growing much faster than the
cereals as people are becoming more health conscious. It has been also found that the
awareness of obesity, cardiovascular diseases and diabetes, is an important factor for the
growth of the breakfast cereal that has been recommended by many nutritionists and
doctors in the consultation and homeroom and recommending brands for the breakfast
(Sumithra and Sila, 2007).
Counihan and Van Esterik (2012) have stated that the Indian consumers avoid the external
food in the breakfast as they want to intake the full of protein and vitamins breakfast. The
new brands can cater the Indian consumers by offering them ready to cook items that can
target the professionals and working people of India. Usually, they are always in hurry and
do not have time to prepare the breakfast. So they prefer the branded items that can
provide such products which are ready to cook and prepare. The working professionals
easily rely on the branded options and opt for the branded breakfast options that are
nutritional, healthier and ready to cook (Gaur and Nimit, 2016).
Ayush brand of HUL marks the entry into the natural and health food segment and it can
meet the demand of the Indian people because of the hurry lives of the people where time
is most important ended up with skipping their meals and breakfast (Sumithra and Sila,
2007). This can also compromise their well-being and health. This can restore with the use
of Ayurveda in the daily diets of the people. The new dishes launched by HUL can take eight
minutes to cook that ensures the start of the day with the nutritious and tasty breakfast.
HUL has clocked Rs 1147 Crore form its food division during the fiscal year 2018. The
products offered by the HUL will give the competition to the breakfast products which are
ready-to-cook of MTR, Pepsico, Marico and Kellogg’s. The brand will provide the
competition to the various brands and thus the sales of this launch will also be surged and
contribute to the success of the company (Food navigator-asia.com, 2018).
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SAMPLING
A sample of fifty different kinds of articles will be reviewed and studied to conduct the
secondary research. The process for the sampling method for the current study will be
“Convenient Sampling method”. The advantage of this technique is the time efficient, low
cost and convenient. Out of the fifty works of literature, twenty will be reviewed and
studied in detail relevant to the topic. This will help in providing the proper findings to the
research. The sample for the open-ended questionnaire is also selected and based on the
basis of random sampling method that will be filled by the managers, employees and
customers of the Hindustan Unilever. The sample size selected for the open-ended
questionnaire is forty (Flick, 2015).
DATA ANALYSIS
Outcomes from Open-ended questionnaire: The open-ended questionnaire has been
analysed as below on the basis of more common answers and opinion they have provided
about the topic. This has been provided to the employees and managers of the HUL. Some
of the questions are also filled by the customers of HUL on a random basis to know the
acceptance level of the product and the performance of the product (Flick, 2015). The data
obtained from the open-ended questionnaire has been analysed as follows:
1. What is the market of the packaged food in India?
Market of packaged food in India
Growing
Stable
Declining
irregular
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2. Does consumers of India are switching from the western cereals to healthier or Indian
alternatives?
Yes No
0
5
10
15
20
25
30
35
Switching from western cereals to indian
alternatives
Switching from western cereals
to indian alternatives
3. What is the opinion of managers regarding the launch of “traditional breakfast option” in
catering the need of Indian consumers?
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Opinion regarding meeting needs of Indian
consumers
Healthier
Easy to cook
Time saving
4. What are the problems faced by the company in the success of the launch of the product?
Problems in launch of the product
Indian Mindset
Packaged food
High Competition
5. How does the “Traditional breakfast Option” launched by HUL cater to the needs of the
Indian consumers?
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