People
Willingness to pay the Healthy or the Regular Instant Noodle
In
the existing market, customers demand healthy food product. Cases of early age
obesity, cancer, and other diseases are attributed to regular food products
whose ingredients do not meet the dietary requirements. Gone are the days when
consumption of junk food was a regular phenomenon. In the countries such as the
United States , Canada , and the UK
A
significant amount of resources and time are spent in the research and design
process of the production of healthy noodles such as Dr. McDougall Dr. McDougall
Size
The
serving size for a regular noodle and a healthy noodle pack is 56g and 27g
respectively. It implies that the producers of Shin Cup brand are aware of the
competitive advantage of the healthy Dr. Douglas Foods
Given
the exaggerated nature of the effects of fatty noodles, it can be speculated
that people will be more willing to part with a significant amount of money in
exchange for a small sized Dr.
McDougall Dr. McDougall’s, the cost of seeking
healthcare far much outweigh the extra cost incurred in the purchase of a
healthy noodle pack.
In the modern times, food products that are
low in fat and calories are associated with prestige, class, and health. Therefore, it is possible that the trendy
nature of McDougal’s noodle contributes to its high price tag. Chances are that the firm's marketing
strategists intend to recover the cost spent during the production and
marketing stages of the healthy noodles. Moreover, it should not escape the
attention of the potential buyer that the product price is inclusive of the
shipping cost, which is variable as per customer location and the level of
logistical challenges. Even more interesting is that the price tag is variable
as per the individual sellers.
Health
The
targeted consumers by McDougall ’s and Nong Shim are
the health conscious individuals and the common people respectively. The market
segment for the regular people is larger than that of the health conscious
minority. However, a careful analysis reveals that both firms have a potential
of registering equal levels of sales revenue in the short run because of McDougall ’s reciprocation of small target segment with high
commodity price. In the long-run,
McDougal’s Food has a tendency to expand its market share as more potential
shift their loyalty towards healthy products. In this case, Nong Shim is under
a threat of closure unless it innovates is noodle products to meet the market
demands.
Specific
Informational Needs
To
address the problem of the customer preference between the healthy and the
regular noodles, there is a need to obtain the information on the periodic
sales of both firms. In addition, data on the customer's tastes and preferences
is also important. Any information on the past price fluctuations will also be
necessary for determining its root cause. Besides, the researcher should
inquire on both firm's future strategies on how to maintain their customer
bases and the ways to mitigate the mounting competition from the rivaling firm.
The researcher should interview an equally sampled number of product consumers
from both noodle firms to shed light on the motivating and contributing factors
to their loyalty. It is also imperative to include the information on the
customer awareness of the long-term implication of consuming noodles that are
high in fat and calories. Furthermore, the researcher should analyze the
performance of competing start-up firms to determine the growth stage of both
noodle products.
Survey
Questions
a. Age
b. Gender
c. Average
monthly income
d. What
is your favorite product between McDougell’s noodles and Nong Shim noodles?
e. What
are some of the factors that contributed to your choice of noodle product?
f. Does
the Price of the product affect your choice?
g. Are
you aware of the effects of long-term consumption of noodles that are high in
fat and calories?
h. Does
an ingredient specification affect your choice?
i.
Does choice of noodle
product influenced by personal taste and preference or market trend?
Data
Analysis
The
variables in this research are price (dependent Variable y), sales of healthy
noodle (independent variable x), and sale of regular instant noodle
(independent variable x). From the survey, the researcher can determine the
number of customers that prefer each of the noodle products. With such data, it
is easier to make comparisons while determining the reasons behind the
observations and the contributing factors to distinct choices. The researcher
should also be a keen observer on how the changing prices affect the sales
revenue between different periods of the year. Such data can be gathered over a
long period of time. Then, its analysis for each company will entail plotting
of scatter plot to illustrate the correlation between the two variables.
Y=f(x,
p)
Y=dependent
variable
X=independent
variables
P=the
unknown parameters
F=linear
function
The
linear regression formula above can be applied in the analysis of the market
performance of McDougell’s and Shin Cup noodle soup. The linear function can be
specified from the existing correlation between the two products such as the
fluctuating number of customers. The parameters that affect the long-term
performance of each product are also included in the data analysis (Cameron and Trivedi 65).
In
summary, the researcher is obliged to conduct a careful observation of the
customer's willingness to buy healthy rather than the regular noodles.
Understanding the customer's tastes and preferences, market trends, and the
pricing is fundamental in averting research distortion and ensuring a concise
research outcome. In addition, the researcher should consider the market
performance of competing products.
Work
Cited
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