NoDoz New Product Research

C&S: Kaley Noonan, Celine Lam, Xinqi Jin, Megan Prince

Overview

1. NoDoz New Product Research Objectives
2. Research Problem
3. Study approach
4. Respondent eligibility
5. The research details
6. Results
7. Conclusions and Recommendations
8. Summary

NoDoz New Product Research Objectives

Our general objective is to assess the current level of satisfaction with products in the stimulants category among 18-24 years old.

Research Problem

1. Determine satisfaction with the product forms currently available, opportunities for alternative forms
2. Define current usage occasions for stimulants for 18-24 year olds (night out, working out, studying, etc.)
3. Find flavor preferences
4. Determine importance of price, brand in purchase decision and importance of price in decision to try a new product

Study approach

• An online survey tool- Qualtrics- was adopted to create the online survey questionnaire.
• The link for the survey question is still available for review at: https://uiowa.qualtrics.com/jfe/form/SV_6hSga5DoWKyqhyl
• To meet the objectives of this study, a descriptive sampling approach is adopted.

Respondent eligibility

• The target respondents for this study fulfilled the following criteria:
• All respondents must be aged from 18 to 24 years old;
• All respondent must purchase non-prescription caffeine based energy products (examples: energy shots, caffeine pills, energy drinks, or chews) in the past 90 days.

The research details

• The final achieved sample was N= 229, with the research breakdown as follows:

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• The ratio of the respondents in this research is 30% male and 70% female.

Results

(1) Determine satisfaction with the product forms currently available, opportunities for alternative forms

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The Percentage Of Preferred Product Form

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Independent Samples Test

Recommendation for Product Form

Company does not need to change the product form.

(2) Define current usage occasions for stimulants for 18-24 year olds (night out, working out, studying, etc.)

Frequency table of usage occasions

• The highest consumption of caffeine based energy products is when studying. (77.5%)
• The second and third highest consumption of caffeine based energy product is before or during class (52.8%) and to wake up in the morning (44.9%)
• The lowest consumption is when playing video game. (13.5%)

Bar chart of the percentage of usage occasions

Independent Samples Test

Alpha value=0.10

Independent Samples Test

Alpha value=0.10

Independent Samples Test

Alpha value=0.10

• Since the p-value of satisfaction levels of preferred energy product with the consumption of caffeine based energy products before a workout [significant value (2-tailed)= 0.074] is smaller than alpha value (=0.10), we can reject the null hypothesis

Independent Samples Test

• Hence, we can state that there is association between current usage occasions for stimulants for 18-24 year olds with the satisfaction levels of preferred energy product

Linear regression

• According to the estimated regression equation, the percentage of total variation of satisfaction level of preferred energy products is 11.8% because the R-square is 0.118.

• Among the independent variable, there are two variables- consume caffeine based energy products when playing video game and before a workout that impact on the dependent variable (=satisfaction level of preferred energy product) is significantly different from zero (with alpha= 0.10).
• The coefficients value for consumption caffeine based energy product when playing video game is positive shows that customer is satisfied the energy product
• The coefficients value for consumption caffeine based energy product before a workout is negative shows that customer is dissatisfied the energy product.

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Recommendation for Usage Occasion

• The company can focus more on these three occasions: when studying, before or during class and to wake up in the morning.
• The company can also target on the workout customers because currently the customers are dissatisfied with their preferred energy product.

(3) Find flavor preferences

Descriptive Stats of Flavor Preference

• By finding the descriptive statistics of all the flavors and how each was ranked we were able to determine based off the means the flavors that were most desirable.
• The lower a mean, the more desired it was since the scale indicated closer to one was most preferred and closer to ten was less preferred.
• The lowest mean was the flavor berry at 2.75, so we can assume that was most preferred.
• The highest mean was other flavor at 8.89 followed by cinnamon at 7.60, so we can assume that of the listed flavors cinnamon was least desired.
• Watermelon, mango, mint and all other flavors fell somewhere between the two.

Descriptive Stats of Flavor Preference

Top three flavors:

1. Berry
2. Citrus
3. Mango

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Recommendation for Flavor Preference

• Since the most popular flavor has been berry we recommend that berry have the highest quantity of production among all popular flavors.
• We also recommend that production follow a ratio that has flavors with a lower mean producing more compared to flavors with a higher mean.
• For example, berry’s mean is (Mean) and watermelons is (mean). So a proposed example could be to produce at a ratio of berry:watermelon of 6:5.
• Every flavor was prefered by at least someone because no mean was at ten so all flavors should continue to be produced.

Independent T-test

• The next test we ran was an independent T-test amongst all ranked flavors and compared with gender
• We wanted to compare if there was any significant difference in flavor preference between men and women
• None of the tests had significant figures so we failed to reject the null hypothesis and determined their was no significant difference amongst prefered flavors between men and women

Independent T-test

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Independent T-test

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Recommendation for Flavor Preference

• Based on the results from the gender versus flavor preference we recommend that the company use marketing that does not target a specific flavor towards a specific sex.
• All genders prefer flavors in the same manner so the prefered flavors should be targeted to either gender.

(4) Determine importance of price, brand in purchase decision and importance of price in decision to try a new product

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Frequency of Trier Price Value

• Based on this data we can see that consumers would rather buy the best value (60%), compared to the lowest price (23%).

Independent T-test

• Based on this test the price was not a significant factor in the willingness to try a new energy product.
• The value was also not a significant factor in determining their willingness since both had high significance levels.

Recommendation for Price Value

• Based on the frequency of price value I believe that the company should focus on value more than lowest price because that's what consumers care about most.
• Based on the independent T-test I can further express this because people are not more willing or less willing to try an energy product based off of their price or value so it makes sense to focus on the variable that we have seen is most prefered.

Conclusions

1. Customers satisfy with the product forms currently available
2. Studying, before or during class and to wake up in the morning are three important current usage occasions for stimulants for 18-24 year olds.
3. Berry is the most popular flavor, followed by citrus, and mango.
4. There is no difference in flavor preference between men and women.
5. Price is not a significant factor in determining if consumers are more likely to buy and it is less important than value.

Recommendations

• Company does not need to change the product form.
• The company should focus on three most important occasions which are when studying, before or during class and lastly to wake up in the morning because these three are the highest consumption of caffeine based energy products.
• The company can also target on the workout customers because currently they are dissatisfied with their preferred energy products.
• The flavor berry should be produced most, followed by citrus and mango with cinnamon being produced the least. Also men and women should have the same flavors targeted at them.
• Value should be attained more vigorously than having the lowest price.

Summary

Find objectives

Define research problems

Examine research details

Report results

Conclusions and Recommendations

Questions?