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CASIRJ

Volume 5 Issue 2 [Year - 2014]

ISSN 2319 9202

CONSUMER BEHAVIOUR FOR FRUIT JUICES MARKET IN INDIA


Author 1

Author 2

Vikram Gahlawat
Assistant Professor

Rambir
Research Scholar

Author 3

Ashima Garg
Assistant Professor

Delhi College Of Arts and Commerce

Central University

B.P.S. Mahila Vishwavidyalaya

University of Delhi

Himachal Pradesh

Khanpur, Haryana

vikramgahlawat.dcac@gmail.com

aryarambir@gmail.com

ashima.2012@rediffmail.com

ABSTRACT
Consumer buying behavior is a generic term which explains the consumer choice or preferences
for a particular product. The consumer behavior pattern shows the identity, value, acceptance and
marketing share. The buying pattern and the response of consumers will give the subsequent data
for more modification in case of growth of product in the market. The focus is also made on the
competitor characteristics and the type of fruit juice launch in the market to capture their target
consumers. The objective of the study deals with the demand of a product which can be known
from the consumers buying pattern and parameters like quality, quantity, availability, price and
packaging and delivery mode. The demand also depends upon some of the other factors like
consumers awareness, purchasing power population, promotional activities of product in the
market and seasonality. It is found from the study that profession wise highest number of
consumers of fruit juices are the students. For each category of consumers their quantity of
purchase is also obtained, which varies according to their income and physical need. In this study
it is found that packaging also has great importance towards consumer preference as it gives rise
to massive purchase and storage. Customers want western style packaging with Indian style
taste. The consumers generally tend towards natural flavor in spite of artificial added flavors
with synthetic colors in it.

Keywords- Consumer Behavior, Promotional Activities, Consumer awareness, Consumer


Preferences

International Research Journal of Commerce Arts and Science


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Page 232

CASIRJ

Volume 5 Issue 2 [Year - 2014]

ISSN 2319 9202

INTRODUCTION
India is continuously growing in various sectors and preference of people is also changing
according to the change in business trends..
According to DRINK TECHNOLOGY INDIA FAIR, as the beverage industry looks tothe
future, India is the country that offers the greatest potential, even more so than China. Right now,
India accounts for about 10% of global beverage consumption. That makes beverage
consumption in India the third largest in the world, after the United States and China. The market
has not even been properly tapped. Given its size, the Indian market is still in its infancy.
Consumer buying behavior is different according to various products A preference of consumer
differs due to the different characteristics of the product. This study shows the consumer
preference with respect to fruit juices. Fruit juices nowadays have become a social drink which
captures the attention of each individual of a society. The restrictions for other type of alcoholic
drinks gave an ultimate way to the demand of fruit juices. In Indian market, the severe
competition among the producers has encouraged them to go for innovative ways. The
consumers are mostly lean towards the brands which come across them in the daily life while
going through television, newspapers, and magazines, banners displayed in roads and from web
sites. The juice market has turned into a competitive market as there are similar competitors in
the market serving the same type of juice by different brand names. The brand names of fruit
juices have changed the consumer preferences because of their easy availability, price, quality,
packaging, quality etc. The perceptions towards the individual product show that whether the
consumer will buy it or not. The consumers also change their preferences according to their
capability of buying for that particular product. The distinct characteristics may sometimes
attract the consumers to buy the product which they may not have purchased before. The retail
chain also plays an important role towards it which shows the availability of product at the time
of need. The consumers are again distinguished into different age groups because of their
different consumption pattern of food. In some cases it is observed that fruit juices are only
acceptable by sports persons for energy as well as for relaxation, but the health consciousness
factor has affected individuals a lot so. The campaigns for fruit juices have solved much disbelief
among the consumers.

FRUIT JUICES MARKET AND CONSUMER BEHAVIOR


THE MARKET SENARIO FOR FRUIT JUICES
India produces about 9 million tons of fruits every year, growing at a rate of 12% per annum.
The total market for fruit juices is 230 million litre which includes both packed and freshly made
fruit juices. The proportion of packed fruit juices is small at just 3.4 Million litres just over 1% of
market. But even this huge volume translates to just 20 ml per capital consumption as against 45
International Research Journal of Commerce Arts and Science
http:www.casirj.com

Page 233

CASIRJ

Volume 5 Issue 2 [Year - 2014]

ISSN 2319 9202

litres in Germany, 42.5 litres in Switzerland and 39 litres in USA. The key issue before the
markets was to raise the consumption of packed fruit juices. The market for fruit juices is more
concerned about the facts behind fruit juices so the need for it is not diminishing but it is rapidly
increasing day by day. For every fruit juice there is certain amount of market share but the real
holding of market share depends upon the identity of the product by taking into account price,
brand, quality, quantity, packaging, availability, flavor etc.
For Indians drinking juice is not a new concept. Street corner vendors have been popular for
years. Fruit juices in the unorganized segment are considered cheaper and fresher by the
consumers, even though they are relatively unhygienic. The organized natural juice market is
currently in a nascent stage-though it is growing at a healthy 35-40 percent rate per annum. This
market has had high entry barriers. Few customers are convinced about packaged juices being
preservative free, and therefore, as healthy as freshly squeezed juice. A number of factors
contributed to this growth, including the increasing interest in health and diet, which is
undoubtedly one of the main drivers. In addition, growing awareness of the importance of the
Governments five day campaign to increase fruit and vegetable consumption will encourage
new entrants into the market. In particular, younger consumers might regard fruit juice as a
convenient way of boosting their consumption of fruit and vegetables.
CONSUMPTION HABITS
81% of fruit juice consumption in India was unplanned and 38% was pure impulse. 60% of fruit
juices consumption happened outside the home. Fruit juice consumption was a group activityjust 2% of the population had the fruit juice alone. Indians prefer fresh juices- made in front of
their eyes. The origin of this preference lies in the belief that is packed loses freshness. In a
country used to having fresh food all the time, the consumer wanted to see the product. In food
products at times seeing is creating the impulse!! Tetra pack manufactures have defined the basic
need of Indian consumers by not allowing the consumers to see the product. India is becoming a
country which wants western style packing with Indian style taste and this was posing a great
challenge with limited cold storage and cold chain capabilities. Vivita-a new entrant has tried to
overcome the freshness of the juice issue by packing fruit juices in aseptic PET bottle with a no
preservatives label. The consumer is reassured by being able to see the product before buying.
THE GROWING FRUIT JUICE MARKET
The chance encounter with the wonder plant sea buckthorn was the reason Ladakh Foods was set
up as a separate company in 2002 to manufacture and sell sea buckthorn juice as Lehberry.
Ladakh Foods today claims to be one of the fastest growing fruit juice companies in a fiercely
competitive environment where big names such as Dabur and Pepsi already hold substantial
market shares. Even when the fruit juice/nectar market is projected to grow at a scorching pace
of 40 per cent, a Tetra Pak study has found that a whopping 86 per cent of the fruit juice market
is still lying untapped.
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This time in the packaged fruit juices category. "With the market growing at a healthy rate and
with changing lifestyles and rising levels of health consciousness among consumers today, the
demand for healthier products like packaged fruit juice is only going to increase in the times to
come. The fruit juice category is rapidly growing by over 50 per cent at some stores for us; its
seen as healthy compared to soft drinks. They are more hygienic than roadside fruit juices and
are a big hit with yuppies. Also, non-sugar variants find flavours with fitness freaks.
FRUIT JUICE SEGMENT POISED FOR 30% GROWTH
The branded fruit juice market in India is estimated to be worth Rs 500 crore organized fruit
beverage market (nectars, drinks and juices combined) and the segment is growing at about 30
per cent per annum. Big players like Dabur, Pepsi, Godrej and Parle Agro are already in the
market and in view of the swift growth in the market, newcomers like Surya Foods and Agro,
Mother Dairy, Ladakh Foods, Pioma Industries have come into the market with new products in
the recent years.
Primary food processing is a major industry with a highly fragmented structure that includes
hundreds of thousands of rice-mills and hullers, flour mills, pulse mills and oil-seed mills,
several thousands of bakeries, traditional food units and fruits, vegetable and spice processing
units in the unorganised sector. In comparison, the organised sector is relatively small, with
around 516 flour mills, 568 fish processing units, 5,293 fruit and vegetable processing units, 171
meat processing units and numerous dairy processing units at state and district levels. The share
of the organised and unorganised sectors varies across different segments of the industry.
Share of categories in Indian fruits juices & Vegetables processing sector

International Research Journal of Commerce Arts and Science


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CASIRJ

Volume 5 Issue 2 [Year - 2014]

ISSN 2319 9202

In India it is almost equally divided between the organised and unorganised sectors, with the
organised sector holding 48 per cent of the share. While products like juices and pulp concentrate
are largely manufactured by the organised sector, the unorganized sector in foothold is in the
traditional areas of processed items like pickles, sauces and squashes. By size, pickles form the
strongest category.

FACTORS AFFECTING DEMAND

A.) POPULATION
B.) INCOME AND PRICES
C.) CONSUMPTION HABITS AND PREFERENCES
D.) PROMOTIONAL ACTIVITIES
E.) SEASONALITY

CONSUMERS PURCHASING BEHAVIOUR

Most consumers prefer local shops to larger supermarkets because of proximity, personal
attention, and lower prices. Nearly 95 percent of consumers purchase fresh fruits and vegetables
from a local market or street vendor. Additionally, traditional markets are considered the freshest
source for foods. Indians have a strong preference for freshly prepared foods, and most have a
definite prejudice against packaged, branded, or processed foods, believing them to be lower in
flavor and nutrients. Many households will not even reheat foods, and make only enough for one
meal. This is mainly to avoid waste, but also to ensure freshness since refrigeration is available
only in wealthier households. However, with urbanization, rising incomes, more working
women, the arrival of large food multinationals, and a proliferation of fast food outlets,
acceptance of packaged food products is increasing.

CONCLUSION
The objective of the study is to analyze the consumer behavior with respect to fruit juices The
thorough study is based on the consumer behavior analysis which serves a great idea of wide
idea regarding consumer perception when they go for a particular brand from the market for
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http:www.casirj.com

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CASIRJ

Volume 5 Issue 2 [Year - 2014]

ISSN 2319 9202

fulfilling the need. In order to satisfy themselves consumer perceive many things before buying
which are analyzed in this paper and result is obtained.

The market share is studied for each brand by taking into consideration which product they like
to buy or they are buying. It is found that real has retained maximum number of customers where
as other brands have retained lesser number of consumer. So other brands can change their
strategy for retaining more number of customers for satisfying their objective. The parameters
which are considered in this study really affect the consumer buying behavior- availability, price,
quality, quantity, customer feedback and packaging. Real has gained maximum number of points
in case of availability, quality, flavor, packaging. Consumer awareness is also an important
factor for the producers from where they know about the consumer interest regarding their
product. It is obtained from the study that the awareness increases the market share of the
product. For the higher income personnel price is not a prime factor as studied from that
consumer behavior study. The type of purchasing the consumers do is also obtained by
considering their frequency of buying the juices and the quantity they purchase at a time. The
consumer wants to go for the easy way of buying the juices.
References

Brunel. Olivier, and Paul-Emmanuel Pichon (2004). Food Related Risk Reduction
Strategies: Purchasing and Consumption Processes, Journal of Consumer Behaviour, Vol.
3(4), 360374.
Westbrook, Robert A. (2002) A case study of organization-level customer satisfaction.
Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior
Padberg, D. I. and R. E. Westgren (1979). Product Competition and Consumer Behaviour in the
Food Industries, American Journal of Agricultural Economics, Vol. 61(4), 620-625.

Rimal, Arbindra et. al. (2001). Perception of Food Safety and Changes in Food
Consumption Habits: A Consumer Analysis, International Journal of Consumer Studies,
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