A REPORT

ON

RURAL MARKET SURVEY

Group 2

1

INDEX

Sr. No.

Topic Page Number

1. Introduction 3

2. Objectives of the Study 4

3. Research Design 5

3a.

Quantitative Research Objectives Sample size Questionnaire Method

5

3b.

Qualitative Research Objectives Sample size Research Methodology

6

4. Data Tabulation and Analysis 7

4a.

Quantitative Analysis 7

4b.

Qualitative Analysis 14

5. Conclusion 15

2

INTRODUCTION

Red Bull was the brand that created the energy drink category. The brand came into

existence in 1984. The brand was created by an Austrian professional turned

businessman Mr Dietrich Mateschitz.

The story goes like this.

The original inventor of Red Bull energy drink is said to be Chaleo Voovidhya, a Thai businessman. In 1962 he created a drink named Krating Daeng (meaning Red Bull in Thai). In 1982 when Mr Dietrich visited Thailand, he came across this product which helped him to tide over the jetlag very quickly. Impressed by the product efficacy, Dietrich decided to take this product to Europe. He started Red Bull Gmbh with equity participation from Chaleo Voovidhya.

By the year 1987, Red Bull achieved a cult brand status across Europe and America.

The brand came to India in 2003. Although the brand has been keeping a low profile compared to the Cola majors, Red Bull has created a category of energy drinks in the Indian market. According to Economic Times (30.05.08) the energy drink market in India is estimated to be around 100 crore. The market now has two main players Red Bull and Power Horse.

Energy drinks in India are not popular and mainly consumed by sport persons hence a niche.

The energy drink broadly comes under the category of functional drinks which is a bigger market estimated to be around Rs 543 crores.

Since the launch the brand has managed to dominate the Indian market with more than 60 % market share.

The main issue is regarding the perception of consumers towards this category. This drink is perceived to be associated with alcohol.

These products are more found in pubs and bars which further reinforced the perception that these drinks have parity with products like beer.

3

OBJECTIVES OF THE STUDY

This study is carried out with the purpose of determining the following:

The attitude of rural people towards Red Bull Also what will motivate them to buy this drink? The study would also enable how they perceive this drink. The personality that they associate the drink with.

For this purpose, both quantitative and qualitative research has been undertaken.

The research objectives are primarily to understand the attitude, motivation and perception of the rural people towards Red Bull and what strategies can be framed for launching Red Bull in the rural market. An effort has also been made to gain insights into the rural people’s mind based on their evaluation of various parameters that influence them to buy their soft drink.

4

RESEARCH DESIGN

For the purpose of the study, a survey has been conducted. Also interview was taken to gauge the rural people’s reaction after tasting the drink.

Quantitative Research:

Objective:

To gauge the awareness of rural consumers about the soft drink brands available in the market.

To know their choice of soft drinks. The influencing factors in making their decision of consuming their drink.

Sample size:

A random sample size of 50 has been considered for the quantitative study.

Questionnaire Method:

Development of the Questionnaire:

The main questionnaire consists of 18 questions. Both open ended and multiple type

questions have been included aimed at recording the attitude and perception of

respondents towards the introduction of a new drink in the market.

The questions that have been included in the questionnaire include:

Attributes that they like in their choice of drink. What kind of taste they prefer? Personality that they associate with their drink. Parameters that they consider while buying a drink. Willingness to accept a new drink in the market. Media that makes them aware of the drink.

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QUALITATIVE RESEARCH

Objective:

To gauge the rural people’s reaction after tasting the drink. To know their perception about the drink.

Sample Size:

A sample size of 5 was considered for the qualitative study.

Research Methodology:

Interview Method:

We interviewed 5 respondents with 5 questions on Red Bull which involved

questions pertaining to the taste, ranks and the brand ambassador that villagers

would like to have in the ad of Red Bull. Open ended, multiple type questions and

semantic differential scale questions have been included aimed at recording the

attitude and perception of respondents towards the taste of the drink.

The questions that have been included in the questionnaire include:

How did they like the taste of the drink? The actor they would associate the drink with. Would they recommend others to consume the drink?

6

DATA TABULATION AND ANALYSIS

Quantitative Analysis

Q-(1)

Q-(2)

7

Q-(3)

Q-(4)

8

Q-(5)

Q-(6)

9

Q-(7)

Q-(8)

10

Q-(9)

Q-(10)

11

Q-(11)

Q-(12)

12

13

The rest of the questions which are not included above gave the following findings:

Please rank each of the following parameters based on their importance on a scale of 1to6where 1 is most important and 6 is least important.

Drinks they prefer drinking

Thumps Up36%

Pepsi26%

Coke24%

Sprite14%

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QUALITATIVE ANALYSIS

The analysis showed that village people found the taste to be medium sour.

Some of the actors that the villagers mentioned with which they associated the personality were- Shahrukh Khan, Salman Khan and Hrithik Roshan. Thus, the drink is connected mainly to the male personality.

On a scale of (bad)1 to 5 (good) the drink was rated on an average 4.

Moreover they would recommend the drink to others in the village.

The brand ambassador would remind the villagers about the product.

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CONCLUSION

From the survey we conducted we found that rural people are aware of the drinks available in the market. The drinks that are available in the market are:

Sprite, Thumps up, Mangola, Maaza, Pepsi, Mirinda, etc. The most preferred soft drink is Thumps up. The brand ambassador, Akshay

Kumar increases the recall value of the brand and also influences their preference.

The reason for their consumption was mostly because of taste. Also we saw that in a family everyone mostly consumes the same drink. Taste is the most important factor that they consider while making a choice for

their drink. The villagers would like to have a sweet and a sour taste in their drink. The people drink the product just because of the advertisements. The most

watched channel is Star Plus. Price is another important factor that is considered while making their

purchase decision. Hence for buying their drink they would take the price in to consideration.

People are not willing to shell out more money for a drink. On an average the villagers spend Rs.30-40 in a month. But they were willing to try out a new drink and also said that they would drink once in a while.

Moreover, the packaging and the colour of the product is another factor that to some extent made them reluctant in trying the product.

Thus, if Red Bull enters the rural market then it would be advisable to change the packaging of the product.

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Project Compiled by-

Ashish Kapoor 9

Ekta Sadarangani 16

Khushboo Bhavsar 21

Kinjal Gandhi 22

Minal Chauhan 29

Sajjad Jaffri 50

Vidhi Gandhi 68

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