Changes made: Correlation tests and ranking added. Conclusions refined. And code book added in annexure. Institute of Management Research Methodology December 20, 2010 Project Report “The effect of Sensory Branding on the company and the consumer” Submitted To: – Prof. Tripurasundari Joshi Submitted by:- Kittu Rajpal (101322) Prachi Pauranik (101335) Tarang Agarwal (101355) MBA FT Section C Acknowledgement To begin with, we would like to thank Professor T. S. Joshi for guiding us through the process of completion of our research work.

This project helped us to learn how to conduct a survey and collect data using Questionnaire. Also defining its objectives and analyzing it using various statistical tools. It has been an enriching experience for us while working on our project of Marketing Research. Table of Contents |TOPIC NUMBER | TOPIC |PAGE NUMBER | |1. |Executive Summary |4 | |2. Background: Sensory Branding |5 | |3. |Objectives |5 | |4. |Research Problem |6 | |5. |Research Questions |6 | |6. |Research Methodology & Analysis |6 | |7. Sampling Plan |6 | |8. |Benefits & Limitations |7 | |9. |Analysis of Data & Graphs |8 | |10. |Conclusion |14 | |11. |Annexure |15 | Executive Summary What appeals to one customer may not appeal to another.

An individual might react adversely to a scent by itself, but respond favorably to the same scent when it is used in combination with a particular sound, texture or taste. Customer surveys are adept at teasing out subtle nuances in perception and subsequent interpretation through consumer behavior. And as FMCG products deal with customer it becomes very necessary to have a insight into customer perception about the advertisement. Which of the five senses were stimulated? Which messages resonated with customers? What were subsequent customer behaviors?

Through our research, we have tried to gain an insight into the consumer behavior pattern, and the various factors that affect the recall of a brand by appealing to the senses of the consumer apart from their tangible benefits. |Background | |At first glance it sounds obvious to say that successful brands are good at appealing to the senses – after all, products that | |look, smell, sound, taste or feel good are going to be attractive to the consumer. |But when it comes to marketing, things are different. Brands have traditionally chosen to put their money into assaulting the | |eyes and ears, via traditional advertising, whether it is TV, radio, poster or print. No longer is it enough to shout the | |loudest – loud messages do not stand a better chance of being heard. Brands need to find new ways to instill consumer loyalty. | |One way to do this is to take a ‘multisensory’ approach. | |Currently 83% of all commercial communication appeals only to one sense – our eyes.

That leaves a paltry 17% to cater for the | |other four senses. This is extraordinary given that 75% of our day-to-day emotions are influenced by what we smell, and the | |fact that there’s a 65% chance of a mood change when exposed to a positive sound. Practical steps need to be taken in order to | |move your brand from its two dimensional world into a five-dimensional place. | |In this research of sensory branding we will be mainly focusing on effect on sensory branding in consumer goods in particular | |FMCG industry. | | |FMCG industry provides a wide range of consumables and accordingly the amount of money circulated against FMCG products is also| |very high. The competition among FMCG manufacturers is also growing and as a result of this, investment in FMCG industry is | |also increasing, specifically in India, where FMCG industry is regarded as the fourth largest sector with total market size of | |US$13. 1 billion. FMCG Sector in India is estimated to grow 60% by 2010. FMCG industry is regarded as the largest sector in New | |Zealand which accounts for 5% of Gross Domestic Product. |A well known example of sensory branding in FMCG industry is that of coca-cola | |According to sound lounge CEO Ruth Simmons, “Coke has used a technique we call audio watermarking. This is a popular and | |well-known trick that has been around for centuries and used by composers and producers to weave a sound/motif into a piece of | |music … watermarking acts like an ‘earworm’, which gets inside our brains and becomes so compulsive that we go around humming| |it as we walk down the street and not understanding why.

We effectively become living, walking, singing commercials for Coke. ” | |  | Objectives As every form of marketing today, appeals to one of the five senses, i. e. taste, smell, sight, touch or sound, in the form of advertisements, we wish to conduct a survey for the same and get an understanding of the varying consumer sentiments based on certain pre-determined parameters such as: • Visual appeals of the product, which may include packaging, shape, appearance of a product or service, ambience of a place, infrastructure and so on. Appeals to nasal senses, i. e. sense of smell, flavor, aroma, etc • Acoustics i. e. sound, in the form of music played in a place, to the customer preferences. • Taste of food in an eating joint, would test the sense of taste • The sense of touch can be captured by the preferred textures of products, etc. Research Problem Will the use of sensory branding help the company increase its brand recognition? Does the sensory branding approach help the company to increase its sales? Research Questions

Does the use of senses in branding helps in having higher brand recall in consumer? What are the factors that a firm needs to focus upon when going in for sensory branding? Research Methodology & Analysis We have used questionnaire as a data collection method. In our Research we will deploy an Non parametric tests on the information collected. Sampling Plan Sampling Population: The research has examined the students and lecturers of Nirma Institute of Management. We have also surveyed youth and grown-ups from outside the institution.

Sampling Frame: The sampling frame is college-going and Middle-aged people. List of population is the one with the administrative department of IMNU. We had floated the questionnaire through mail to mailing lists mba1a, mba1b, mba1c. We have also got responses from people from other colleges. Telephonic survey was also used to collect data. Sampling Method: Since we don’t know the probabilities, we chose Non probability sampling. Further, we have identified 2 categorical groups, i. e. Youth (Male Female) and Middle Age (Male Female).

Here, youth is age group 18-30 yrs and 31-50 yrs fall under middle age group. Sample Size: 126 Benefits & Limitations Benefits 1. The research will help us in understanding the customer preferences and buying behavior with regard to sensory branding, i. e. the effect of sensory appeals on recall of a brand. 2. The research can be beneficial for the marketers in assessing which senses they should target for better response from customers in terms of recall. Limitations 1. Our study is based on the responses of students and professionals, mainly from Ahmedabad region.

Since there may be regional variations in the attitude of people and the extent to which they are influenced by these sensory appeals, a country wide survey would have been better. Analysis of Data & Graphs CORRELATION TESTS: |Correlations | | | | |Choc:pckg |Choc:visual | |Kendall’s tau_b |Choc:pckg |Correlation Coefficient |1. 000 |. 158* | | | |Sig. (2-tailed) |. . 040 | | | |N |126 |126 | | |Choc:visual |Correlation Coefficient |. 158* |1. 000 | | | |Sig. (2-tailed) |. 040 |. | | | |N |126 |126 | |*. Correlation is significant at the 0. 05 level (2-tailed). | So, packaging of a chocolate has significant correlation with the perception of taste of consumer.

Cross Tabulations and Chi-square tests: |Age * Coke:visual Crosstabulation | |Count | | | |Coke:visual |Total | | | |1 |2 |3 | |Chi-Square Tests | | |Value |Df |Asymp. Sig. (2-sided)| |Pearson Chi-Square |15. 72a |2 |. 000 | |Likelihood Ratio |15. 335 |2 |. 000 | |Linear-by-Linear Association |15. 362 |1 |. 000 | |N of Valid Cases |126 | | | |a. 1 cells (16. 7%) have expected count less than 5. The minimum expected count is 3. 69. | [pic] H0 : Age does not matter while choosing the shape. H1 : Age makes a difference while choosing a shape. VALUES: X2 cal = 15. 62 X2 tab = 5. 99

Since, X2 cal ;gt; X2 tab ; REJECT H0 ; ACCEPT H1. Thus, impact of shape as a sensory appeal differs with age. |gender * choc:taste Crosstabulation | |Count | | | |choc:taste |Total | | | | |Value |Df Asymp. Sig. (2-sided)| |Pearson Chi-Square |2. 063a |3 |. 559 | |Likelihood Ratio |2. 120 |3 |. 548 | |Linear-by-Linear Association |. 637 |1 |. 425 | |N of Valid Cases |126 | | | |3 cells (37. 5%) have expected count less than 5. The minimum expected count is 2. 83. | | | | |[pic] | H0 : Gender makes no difference in appreciating chocolate taste. H1 : Gender makes a difference as a sensory appeal with respect to gender. VALUES: X2 cal = 2. 063 X2 tab = 7. 82 Since, X2 cal ;lt; X2 tab ; Accept H0 Thus, impact of taste as a sensory branding appeal is same on both male and female. Conclusion

It could be concluded that, in general, despite age, sensory branding appeals equally to both age groups. So, effective advertising using sensory branding would lead to successful campaign in both segments irrespective of age. From the correlation tests, we found significant relation between perception of taste and visual appeal. Thus, a company can improve its position in the perceptual mapping by improving its visual appeal, viz, shape, packaging and presentation. From hypothesis testing, we found a significant difference between the impact of shape of a chocolate or a cookie in its sensory appeal.

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