Business Research Methods

Title: “Factors affecting Consumer Preference Towards

Snacks”.

Executive Summary:

The project purports to decipher the satisfaction level as well as the preferences of

consumers pertaining to the trends in snacks industry and the various flavors of Lay’s, a new

range of savory snacks launched by Pepsi Co. in Pakistan. We aim to analyze the success,

marketability and future growth prospects of Lay’s. Basically we intend to find out the most

popular flavor of Lay’s in the market from our sample and consumer trends towards snacks.

Snacks are a part of Consumer Convenience/ Packaged Foods segment. Snack is described as a

small quantity of food eaten between meals or in place of a meal. Snack food generally

comprises bakery products, ready-to-eat mixes, chips, namkeen and other light processed foods

Snacks as such are, a very minor part of the food processing industry. Snacks are mostly

preferred by children and youngsters to fulfill their appetite for the time being.

Of the wide range of snacks available, potato chips constitute a sizeable segment of the Pakistani

snack food industry, according to Pakistan Info line. The potato chip market is generally an

unorganized industry. Nearly all potato chip snack products are manufactured and sold locally.

There is also no uniform standard for packaging, as there is in Europe, the United States and

other more developed regions. Many snack foods are sold loose or packaged in poly-pouches,

which may only be folded, or in some cases, stapled closed. As the Pakistani economy continues

to grow, and production standards improve, many snack food companies are making significant

investments into plant equipment and packaging machinery.

Pepsi Foods Ltd., now known as Frito-Lay Ltd., produces Pakistan's largest snack food

manufacturer’s brands, including kukuree, Cheetos and Lay`s. Frito Lay's story is an example of

how American recipes were adjusted to satisfy local tastes.

To study the consumer preferences towards snacks and the favorability of Lay`s chips, a survey

will be conducted in Multan, Pakistan where respondents will be requested to fill a questionnaire.

The data will be collected and analyzed to obtain conclusions The report carries an introduction

of the company profile, detail of the methodology followed detailed data analysis and the results

so obtained with the variety of graphs along with given.

Problem Statement:

“What are the factors which constitute for consumer preference

towards snacks?”

A. Null Hypothesis:

“ Consumers prefer snacks”

B. Alternate Hypothesis:

“Consumers don’t prefer snacks”

Research Objectives:

To study the trends in snacks industry as a part of food processing

industry.

To find out what percentage of population likes to eat snacks.

To find out what percentage of population likes to eat Lay`s Chips.

To find out which flavor of Lay`s is most preferred.

To analyze the reason for the popularity of Lay`s as the most

preferred snack.

To know the satisfaction level of people who eat Lay`s.

To find out how much people spend on Lay`s snacks weekly.

To find out conclusions to our results.

Literature Review:

Secondary Data.

Internet Hunting.

Importance and benefits:

This research will enable us to know the factors which are directly and indirectly

involved in the change in the consumer preference towards snacks as many competitors to our

defined product prevail in the market. Also we will be able to help the company, improve its

quality and make future improvements in providing supreme customer value and satisfaction.

Research Design:

Research design is the basic framework which provides guidelines for the rest of

research process. It specifies the methods for data collection and data analysis. The need of the

research itself determines the methodology and the design of the research. The following are the

components of the research design in our case of study:

Correlation Hypothesis Testing (because we find the important

variables or factors that contribute their part in varying consumer

preferences towards snacks).

Applied Research methodology.

Unit of analysis is “Sample”.

Sample Design:

A sample of 50 individuals is selected randomly over a population.

Data Collection Technique:

Primary Data.

- Through structured interviews (Questionnaires).

Secondary Data.

- From websites and articles.

Data Analysis:

For the data analysis we will be using the following techniques:

Probability Sampling.

Correlation testing.

Chi-square technique.

Pie-Charts.

Graphs.

Bibliography:

www.lays.com

http://www.pepsico.com/Brands/Frito_Lay-Brands.html

www.wikipedia.com

www.google.com