Professional Documents
Culture Documents
Innovation
w. r. t. Packaged Dairy Products in Bettiah (West
Champaran)
Abstract:
The objective of this study was to explore and assess the usage
pattern, consumer preferences and scopes for products innovation
with respect to the packaged (and branded) dairy products in the
town; Bettiah, West Champaran, Bihar.
This study throws light on usage pattern and the reasons behind low
penetration of packaged dairy products.
It was found that middle aged and older people (above 36 years), with
high education (graduation, PG or technical) are more concerned with
usage degree of packaged dairy products. A healthy 65 % of above
stated consumers purchase, essential items (e.g. packaged milk,
ghee, powder milk etc) “daily”.
The study shows that, families with less number of family members
give more importance to packaged dairy products (i.e. the give
utmost importance); a significant 67 % of small families are in this
category.
Families with higher income (i.e. more than Rs. 12,000 per month) are
more concerned with quality of packaged dairy product. 42 % of
higher income group population voted “quality” as the most
attracting feature in packaged dairy product.
Study reveals that, majority population living in rural areas still uses
the unprocessed, unbranded local dairy products. Out of 91 rural
respondents, 55 agreed that they still use unprocessed dairy
products, which are neither hygienic nor enriched with nutrients.
Almost half of the respondents admit that they are not aware off all
benefits of packaged dairy products. The relationship possibility
between the awareness level of benefits (from packaged dairy
products) and purchase frequency of essential dairy items, was
tested, but there is no significant relationship among these two.
It signifies, other factors, e.g. price, availability, quality and freshness
of the packaged dairy precuts have got greater importance in the
eyes of customers, while they make purchase decision.
Introduction:
The Indian dairy industry faces challenges from the international dairy
market. Chief among these challenges is that India, as a signatory to
the World Trade Organization (WTO), is obligated to open its milk and
milk products markets to international dairy companies. Because the
Indian dairy industry is characterized by relatively high costs in milk
production, processing, and marketing, and relatively poor quality of
milk due to unhygienic handling, this could potentially pose a
significant threat to the industry and its farmers. In 1999, India
imported 10,000 metric tons of milk powder, primarily from Australia,
the European Union, and the United States. In 2000, the industry was
threatened by the arrival of low-cost fresh milk from New Zealand.
The imposition of a heavy import tax on milk in 2001 has given the
domestic dairy industry some breathing space. However, the respite
is temporary, as the tax is slated to be abolished before the year
2006, as per the WTO agreement.
An Indian dairy farmer gets paid about US$0.16 (Rs 7-8) per kg. Milk
is handled at several levels, passing from the farmer, to the local
dairy cooperative society (DCS), and the union before it is
pasteurized. The milk is then shipped to retail markets through
various supply chain delivery mechanisms, ultimately reaching the
consumer after several levels of “middlemen.” This multi-layered
system not only poses hygiene issues, but each level of handling adds
additional cost.
India is the largest producer of milk producing more than 100 million
tons of milk per annum. Yet, her per capita milk consumption is
around 250 g per day. India has a population of more than 1 billion
with diverse food habits, cultures, traditions an religions. Regional
variations within the country can be mind boggling. On one hand the
country has plains with long tradition of milk production and
consumption. On the other hand, there are forest and hilly regions
with no tradition of dairying. Most of coastal belts also do not have
much of dairy tradition.
India’s milk production will grow at about 3 per cent per annum in
spite of difficulties due to stagnant livestock herd size and shortage of
fodder. Due to increasing population, per capita availability of milk
will increase by only about 1.5 per cent per annum. For an economy
growing at about 8 per cent per annum, this increase in availability
will be grossly inadequate.
BIHAR:
The Milk production in Bihar is approximately equal to that of Haryana
and Tamilnadu. But the per capita milk availability of this state is
significantly low (only 163 gms per day, as of July 2006 data).
Relatively higher population is one of the reasons.
The low per capita milk (& dairy products) consumption, low
penetration level of packaged (and branded) dairy products and
absence of any such study which throws light on this issues, in this
region, create the ground for the study.
This study was done to explore and assess the usage pattern,
consumer preferences and scopes for products innovation with
respect to the packaged (and branded) dairy products in the town;
Bettiah, West Champaran, Bihar.
Earlier Studies:
There has been a little number of studies that evaluated the demand
and purchasing pattern for these niche products in the region of
study. While some studies suggest that the motivation to purchase
organic and processed food and natural products derives from
environmental concerns, most conclude that the primary motive is for
health reasons (Huang 1996).
Following researches have given the list of factors that affect the
purchasing pattern. The objective remains to the research is to test
those factors (and explore more) in the study domain, i.e. up to what
extent they hold true or what deviations are experienced.
Dhar and Foltz (2003) studied milk and organic milk demand using
supermarket scanner data from 1997 to 2002. They found that
organic milk had a low expenditure elasticity, which would indicate
that organic milk was not associated with higher income groups.
Results also showed that smaller families without children purchased
more organic milk
They also found taste (30% of the respondents), food safety (24%),
health benefits (17%), environment (16%), ethics (10%), and a
variation in their diet (3%) to be consumer motivations for purchasing
organic dairy products. More than half (65.5%) of the respondents
believed organic foods to be produced more ethically than
conventional foods. Factor analysis on food safety, organic standards,
and food ethics revealed that food safety and food ethics are the
primary attitudinal drivers affecting consumer purchases. They
defined food safety as the health benefits and safety of organic foods
versus conventional. Food ethics was defined by the authors as
purchasing locally grown foods and using ethical means of
production.
Research Methodology:
Male: Female
(decision making 1.103
person)
31% UG and 27% higher
PG & UG
secondary
Household Size 28% 3-4, and 27% 5-6
No. of Children in
50% 1-3, 31% have 0
family
12% more than Rs 18K,
Family Income 19% 12K to 15K, 17% --- 6K
to 9K
Branded VS Local 46% local and 53% branded
awareness of all
51% aware
benefits
packaged dairy
45% nutrition
puchase reason
factor attracting
towards packaged 40% quality
dairy
GENDER
occasional.
H01 : there is no significant relationship between
Packaged the gender of the purchase decision making person
13
Preference and reason behind the purchase of packaged over
conventional dairy products.
H01 : there is no significant relationship between
14 Regularity the income level of customers and the type of
INCOME LEVEL
calculat
variable Hypothes table resul
s. n. Test variable 1 ed
2 is value t
value
there is no
Chi Age of family usage significant 21.0 accep
1 18.12
Square head dairy type relationshi 3 t H0
p
importanc there is no
Age of family e given to significant 21.0 reject
2 −do− 24.97
head dairy relationshi 3 H0
products p
there is no
reason
Age of family significant 21.0 accep
3 −do− behind 17.8
head relationshi 3 t H0
purchase
p
4 −do− Age of family reason for there is no 33.06 36.4 accep
head branded significant 2 t H0
purchase relationshi
p
there is no
Age of family factors significant 36.4 accep
5 −do− 33.667
head attracting relationshi 2 t H0
p
there is no
regular
Educational significant 15.5 reject
6 −do− consumer 24.09
Qualification relationshi 1 H0
or not?
p
importanc there is no
Educational e given to significant 15.5 accep
7 −do− 10.72
Qualification dairy relationshi 1 t H0
products p
there is no
awarenes
Educational significant accep
8 −do− s of 5.82 9.49
Qualification relationshi t H0
benefits
p
purchase
there is no
frequency
Educational significant 36.4 accep
9 −do− of 31.38
Qualification relationshi 2 t H0
essential
p
items
there is no
Educational factors significant 21.0 accep
10 −do− 15.18
Qualification attracting relationshi 3 t H0
p
action, in there is no
Educational case of significant 15.5 reject
11 −do− 40
Qualification unavailabi relationshi 1 H0
lity p
there is no
Regular
significant accep
12 −do− gender consumer 0.348 5.99
relationshi t H0
or not?
p
reason
behind there is no
packaged significant accep
13 −do− gender 9.04 9.49
over relationshi t H0
conventio p
nal
there is no
Regular
monthly significant 21.0 reject
14 −do− consumer 21.886
income relationshi 3 H0
or not?
p
importanc there is no
monthly e given to significant 21.0 accep
15 −do− 15.372
income dairy relationshi 3 t H0
products p
16 −do− monthly responde there is no 14.875 21.0 accep
income nt's significant 3 t H0
purchase relationshi
reason p
It was found that middle aged and older people (above 36 years), with
high education (graduation, PG or technical) are more concerned with
usage degree of packaged dairy products. A healthy 65 % of above
stated consumers purchase, essential items (e.g. packaged milk,
ghee, powder milk etc) “daily”.
The study shows that, families with less number of family members
give more importance to packaged dairy products (i.e. the give
utmost importance); a significant 67 % of small families are in this
category.
Families with higher income (i.e. more than Rs. 12,000 per month) are
more concerned with quality of packaged dairy product. 42 % of
higher income group population voted “quality” as the most
attracting feature in packaged dairy product.
Study reveals that, majority population living in rural areas still uses
the unprocessed, unbranded local dairy products. Out of 91 rural
respondents, 55 agreed that they still use unprocessed dairy
products, which are neither hygienic nor enriched with nutrients.
Conclusion:
The survey helped the researcher in getting to know more about the
world of dairy products, their usage pattern, dairy cooperatives and
their developments. On a whole, the respondents surveyed seem to
have a healthy awareness about packaged dairy products.
The most differentiating factor is “quality” of packaged dairy
products. Consumers are more concerned about the health related
benefits from the packaged dairy products. Majority of respondents
believe including sufficient amount of dairy products in their daily
food is utmost important for proper nourishment.
The purchase decision making person in majority of households
surveyed, are male. Almost half of households surveyed, there are 1-3
children and having more children in family leads to less consumption
level of dairy products in the family.
The respondents seems to be more concerned about the credible
information given on the pack as majority of respondents prefer to
buy dairy items about which credible information is given.
Respondents at Bettiah are more concerned about the health and
nutrition related benefits from packaged dairy products. It revels their
attachment towards packaged dairy products.
Though respondents are health and nutrition conscious but their
expectation from packaged dairy products do not end here, almost
three fourth of them are taste conscious as well.
The “availability” of the packaged dairy products are given first
importance by the respondents while “freshness” got the second
place. It shows the “impulsive” purchase pattern is prevailing in the
study area.
Since non-probability sampling techniques were used, the results
obtained cannot be
generalized and said to be applicable to the whole town. They can be
however generalized for a particular part of the town nevertheless.
The relationships between the various variables tested using
statistical techniques help the researchers in finding-out the
relationship between them.
Though there were many constraints which, to some extent, acted as
bottle-necks, the
previous research articles as well as some valuable guidance given by
people around proved as a major source of inspiration and motivated
the researchers to put their best foot forward.
It won’t be a hyperbole if I say that I have got the maximum value for
the resource I mobilized in this direction.
This study is not an end in itself as it has not been conducted keeping
any particular
problem or any particular company’s business intentions in mind but
it has acted as a valuable source of knowledge-enhancement. I hope
that it provides assistance for similar studies to be conducted in the
future.
abhayprakashsriwastwa2007@vit.ac.in
abhay.sriwastwa@gmail.com