First thing First
We (HR4NATION) are no expert in economics or data analysis. We have little experience but our core area is recruitment. The sample is too less to even add caveat regarding error margin.
What made us to do this
There were reports in media that Parle-G is sacking 10,000 employees due to decline in sales. As a recruitment firm, we wanted to study the employment market and began preparation. Within 2 days, the company refuted the reports of retrenchment, though admitted that their volume has declined. Many became overnight economic experts and suggested that country is under recession. Their argument was that people are hesitating to spend Rs.5 for a biscuit packet. Hence we decided to shift the goal post and decided to do sampling at small scale regarding decline in sale volume.
What we found
We did ground research and then some secondary research. Both complimented each other. Our sample included students and few retailers and this is
1. There are several smaller players who supply fresh biscuits and consumers are drifting away towards them. Yes, these companies have GST advantage, still this is offset by the brand power that established players command. This means, people are still spending that Rs.5 but its going to another player. These smaller players offer variety.
2. Biscuit manufacturers should be knowing this already, still we present our findings. Parle G has competition not just from ITC, Brittannia, local manufacturers but also from other snack items. The consumers (read it as students) are spending more on other snack items. This ranges right from Bajji to Samosa to Corn to Ground nut to Pani puri to Bhel puri to Mixture. The juice corners and soup shops are also attracting good number of students.
3. There was something interesting we found from couple of teenagers. These kids said they stopped buying biscuits because the wrappers are not recyclable and instead they have moved to other healthy snacks. This they see as measure to protect environment. We honestly admit that we don't know which wrappers are recyclable and which are not, but these days kids are smarter than adults. So, you gotta believe them.
Conclusion
There is no relation between consumers' hesitation to buy Rs.5 pack and recession.
Its is no more rich becoming richer and poor remaining poorer. The wealth is shared by all.
If any company claim that, their sale is declining due to recession, they have failed to gauge the market. Its time for them to increase their spend on market research.
P.S.
If any company is interested to engage us, feel free to drop a mail to hr4nation@gmail.com . We don't boast about credentials. We are at Chennai, have very limited resources. Still can do market research with limited samples.
