Professional Documents
Culture Documents
On the other hand, customer behaviour becomes more hybrid. On one hand, customers
are increasingly price sensitive – searching for bargains at marketplaces like ebay or
buying their groceries at discount markets. On the other hand they enjoy branded and
luxury goods. One and the same person may plan a weekend trip with a no-frills airline
and a stay at a five-star-hotel.
In the result, customers have a wider choice of often less distinguishable products and
they are much better informed. For many offerings the balance of power shifts towards
the customer. Customers are widely aware of their greater power, which raises their
expectations on how companies should care for them. Bringing it all together, it becomes
ever more difficult to differentiate a product or service by traditional categories like price,
quality, functionality etc.
2
The consequence for companies is that they have to adapt their ways of competing for
customers. Traditionally, companies have focused their efforts of customer relationship
management on issues like customer satisfaction and targeted marketing activities like
event marketing, direct marketing or advertising. Although doubtless necessary and
beneficial, these activities are no longer enough. They narrow the relationship between
company and customer down to a particular set of contacts in which the company invests
its efforts. Most likely this will produce not more than a satisfied customer who is well
aware of the companies offerings and has a positive attitude towards them. However, a
satisfied customer is not necessarily a loyal one.
If a customer is satisfied that means that a product of service has met his expectations and
that he was not dissatisfied by it. Customer satisfaction is doubtlessly very important. It is
the precondition for repeat purchases and it prevents the customer from telling others
about his disappointing experiences. A loyal customer, however, is more than a customer
who frequently purchases from a company.
The difference is the emotional bond which links the customer so closely to the company
that he develops a clear preference for these products or brands and is even willing to
recommend them to others. Loyal customers truly prefer a product, brand or company
over competitive offerings. Thus loyalty goes beyond a rational decision for known
quality or superior price-performance-ratio. It is about the customers’ feelings and
perceptions about the brand or product.
When the customer makes his buying decision, he evaluates the benefits he perceives
from a particular product and compares them with the costs. The value a customer
perceives when buying and using a product or service go beyond usability. There is a set
of emotional values as well, such as social status, exclusivity, friendliness and
responsiveness or the degree to which personal expectations and preferences are met.
Similarly, the costs perceived by the customer, normally comprise more than the actual
price. They also include costs of usage, the lost opportunity to use another offering,
potential switching costs etc. Hence, the customer establishes an equation between
perceived benefits and perceived costs of one product and compares this to similar
equations of other products.
3
Based on this, customer loyalty can be understood as to how customers feel about a
product, service or brand and whether their perceived total investments with a it live up to
their expectations.
The important point here is the involvement of feelings, emotions and perceptions. In
today’s competitive marketplace, these perceptions are becoming much more important
for gaining sustainable competitive advantage.
Customer perceptions are influenced by a variety of factors. Besides the actual outcome –
i.e. did the product or service deliver the expected function and did it fulfil the customers
need – the whole process of consumption and all interactions involved are of crucial
importance. In today’s globalised information driven economy this can also comprise
issues like
How other customers or influencing groups perceive the product or brand
The degree to which the customer feels the actual marketing campaign
addresses the most important issues
Responsiveness and service quality of any affiliates, e.g. distribution partner
Customer perceptions are dynamic. First of all, with the developing relationship between
customer and company, his perceptions of the company and its products or services will
change.
The more experience the customer accumulates, the more his perceptions will shift from
fact-based judgements to a more general meaning the whole relationship gains for him.
Over time, he puts a stronger focus on the consequence of the product or service
consumption.
Moreover, if the customers’ circumstances change, their needs and preferences often
change too. In the external environment, the offerings of competitors, with which a
customer compares a product or service will change, thus altering his perception of the
best offer around. Another point is that the public opinion towards certain issues can
change. This effect can reach from fashion trends to the public expectation of good
corporate citizenship. Shells intention to dump its Brent Spar platform into the ocean
4
significantly altered many customers perception of which company was worth buying
fuel from.
Research has been don on the impact of market share on the perceived quality of a
product.Depending on the nature of the product and the customers’ preferences,
increasing market share can have positive or negative effects on how the customer
perceives the product.
1.1.1 Positive Effects Of Increasing Market Share On Customer Perception
Increasing market share can send out positive signals by acting as an indicator of
superior quality that is recognised by more and more other customers. This effect is
particularly strong for premium priced products. Customers normally assume that a
product must be of exceptional quality if it can gain such an unexpected market
success despite its high price.
Many brands offer positive emotional benefits of using a product that is popular in the
markets.
The value of a product or service can rise through increasing number of users of the
same product, e.g. number of members of an online community, better availability of
software for popular computer systems.
The concept of customer perception does not only relate to individual customers in
consumer markets. It is also valid in business to business situations. For example, a
competitor benchmarking survey of a large industrial supplier revealed that the market
leader, although recognised for excellent quality and service and known to be highly
innovative, was perceived as arrogant in some regions. If we take into consideration that
5
there are about four other large players with a similar level of quality and innovative
ideas, this perceived arrogance could develop into a serious problem. Customers here are
well aware the main characteristics of all the offerings available at the market are largely
comparable. So they might use the development of a new product generation of their own
to switch to a supplier that can serve them not better or worse, but with more
responsiveness and understanding.
6
According to D. Slesinger and M. Stephenson research may be defined as ”the
manipulation of things, concepts or symbols for the purpose of generalizing to extend,
correct or verify knowledge, whether that knowledge aids in the construction of theory or
in the practice of an art”. Thus it is original contribution to the existing stock of
knowledge of making for its advancement.
The research frame for the study is given detailed below. The purpose of research was to
discover the answer to question through some specific procedure.
7
1.4.3 Sample Design
Sample Size: A sample of minimum respondents has been selected from various
areas of Jalandhar. An effort had been made to select respondents evenly. The survey
was carried out on 100 respondents.
Sample Unit: It indicates who is to be surveyed. In this project sampling unit is
the students, businessmen, and serviceman of Jalandhar who uses branded milk.
Sampling Technique: For the purpose of this Research, Convenience Sampling
was being used. Different people were contacted for required information.
8
1.4.4.2 Tools of Analysis and Presentation
It means what all tools are used to present data in a meaningful way so that it becomes
easily understandable. To analyze the data obtained with the help of questionnaire,
following tools are used.
Likert Scale: This consisted of a number of statements which express either a
favorable or unfavorable attitude towards the given object to which the respondents are
asked to react. The respondent responds to in terms of several degrees of satisfaction or
dissatisfaction.
Weighted Average Score: This tool was used to calculate highest and lowest rank.
Tables: This tool was used to present the data in tabular form.
Percentage and Pie Charts: These tools were used for analysis of data.
9
CHAPTER-2
COMPANY PROFILE
10
2.1 INTRODUCTION INDIAN DAIRY INDUSTRY
India is the largest milk producer in the world. From being milk impoverished nation to
the top producer has been as arduous and almost miraculous climb. This of course must
be attributed in great measure to Operation Flood and the historic Co-operative
movement. Milk production has increased from 72.12 million metric tones in 2004-05 to
91.94 million metric tones in 2005-09 representing a compound annual growth (CAGR)
of around 4% p.a. against the worlds at 1%. Over the last one and a half decade the
contribution of milk from India to total world milk production has also increased from
9.9% to 14.5%.
India's annual milk production has more than four multiple in the last 37 years, rising
from 21 million tonnes in 1968 to an anticipated around 92 million tonnes in 2005. This
rapid growth and modernization is largely credited to the contribution of dairy
cooperatives, under the Operation Flood (OF) Project, assisted by many multi-lateral
agencies, including the European Union, the World Bank, FAO and WFP (World Food
Program). In the Indian context of poverty and malnutrition, milk has a special role to
play for its many nutritional advantages as well as providing supplementary income to
some 70 million farmers in over 500,000 remote villages.
India’s modern dairy sector has expanded rapidly. From an insignificant 200,000 litres
per day (lpd) of milk being processed in 1951, the organized sector is presently handling
some 20 million lpd in over 400 dairy plants. Already, one of the world’s largest liquid
milk plants is located in Delhi, handling over 800,000 litres of milk per day (Mother
Dairy, Delhi). India's first automated dairy (capacity: 1 million lpd) -- Mother Dairy,
Gandhinagar -- has been established at Gandhinagar near Ahmedabad, Gujarat, in
Western India. It is owned by India’s biggest dairy cooperative group, Gujarat
Cooperative Milk Marketing Federation (GCMMF) in Anand, with an annual turnover in
excess of Rs 23 billion (US $500 million). Amul-III with its satellite dairies, with total
installed capacity of 1.5 million lpd has also been commissioned. India's first vertical
dairy (capacity: 400,000 lpd), owned by the Pradeshik Cooperative Dairy
Federation(PCDF) has been commissioned at Noida, outside Delhi.
11
2.1.1 Growth Drivers & Inhibitors of Indian Dairy Industry
2.1.1.1 Growth Drivers
Potential to Consume
As a developing nation with a healthy growth in per capita income, unlike in the
developed world, there is an increasing acceptance of milk and milk products in India.
This potential can only increase with the rise in disposable income levels, increasing
urbanization and distribution levels.
Strong Co-operative Effort
With support from the government, the Co-operative movement is gaining strength in the
country. This has lead to better prices for farmers and a more organized method of
collection, processing and distribution. Many private sector players have now entered the
business and their efforts will only help to market, distribute and popularize the
consumption of milk and milk products.
12
2.1.3 Upside And Downside Of Indian Dairy Industry
2.1.3.1 The Upside
Increasing awareness: As India enters an era of economic reforms, agriculture,
particularly the livestock sector, is positioned to be a major growth area. The fact that
dairying could play a more constructive role in promoting rural welfare and reducing
poverty, is increasingly being recognized. For example, milk production alone involves
more than 70 million producers, each raising one or two cows/buffaloes. Cattle also serve
as an insurance cover for the poor households, being sold during times of distress.
Supply matches demand: Efforts to increase milk production by dairy farmers are
strongly influenced by the degree to which demand signals are transmitted through the
marketing system. Cooperatives have played an important role in transmitting the
message of urban market demand to them. Since the demand in the urban scenario is
rapidly increasing so is the supply generated by the farmers.
Surplus capacity: Further, the new dairy plant capacity approved under the Milk & Milk
Products Order (MMPO) has exceeded 100 million lpd. The new capacity would surpass
the projected rural marketable surplus of milk by about 40 per cent by 2005 AD.
13
(GMP) and HACCP would help manufacture milk products conforming to
international standards and thus make their exports competitive.
Figure 2.1: State Wise Share of Milk Production by Cows, Buffaloes and Goats
A decline in the total cattle population has been observed over the last three livestock
censuses. This is mainly due to the reduction in population of indigenous cattle. One
positive aspect is the increase in the number of crossbred cattle (62% over the last 11
years). Importance of buffaloes in the Indian dairy sector is increasing as seen from the
growth trend of buffalo population over the years.
14
total milk production in the country. The contribution from the East and North East is
extremely low.
Figure 2.2: Regional Contribution to Milk Production
15
PCDF Uttar 30 13 1510 Parag
Pradesh
WBCMPF West 7 5 1510 Bhagtrathi
Bengal
MPCDF Madhya 6 7 1030 Sneha,
Pradesh Sanchi
RCDF Rajasthan 16 10 1000 Reliance
India 1,41,940
China 32,179
Russia 31,144
Pakistan 29,672
Germany 28,487
France 26,133
16
Brazil 23,455
17
CHAPTER-3
DATA ANALYSIS &
INTERPRETATION
18
DATA ANALYSIS AND INTERPRETATION
The data has been processed and analyzed by tabulation interpretation so that findings
can be communicated and can be easily understood. The findings are presented in the
best possible way. Tables and graphs had been used for illustration of findings of the
research.
Table 3.1: Demographic Profile of Customers
Demographics No. of Respondents Percentage of Respondents
Age
25-35 years 20 20
35-45 years 40 30
45-55 years 20 20
Above 55 years 20 20
Total 100 100
Gender
Male 60 60
Female 40 40
Total 100 100
Occupation
Govt. Employees 60 60
Private Employees 30 30
Businessman 10 10
Others please specify 0 0
Total 100 100
Income (Rs.)/month
Below10,000 30 30
10,000-30,000 40 40
30,000-50,000 20 20
Above 50,000 10 10
Total 100 100
19
Q1. Are you aware of various brands of milk?
Yes
No
100
20
Q2. Which brand of milk you are presently using?
5
10
10 Verka
Amul
50 Mother Dairy
Others
25
21
Q3. Which sources that makes you aware about dairy products?
Figure 3.3: Source Makes You Aware About Different Dairy Products
10
30 Newspaper
20
TV adds
Internet Portal
Hoardings
10 10 Magazine
20 Reference Group
22
Q4. From how long you are using dairy products?
Table 3.5: Time Period
Time Period No. of Respondents Percentage
1-5 years 0 0
5-10 years 5 10
10-15 years 10 20
Above 15 years 35 70
Total 50 100
0 10
1-5 years
20 5-10 years
10-15 years
Above 15 years
70
23
Q5. From where do you shop dairy products?
Kirana Stores 30 30
Supermarkets 60 60
Others 10 10
10 30
Kirana Stores
60
Supermarkets
others
24
Q6. Which type of milk you prefer to buy?
5
7
23 Double Toned
Toned
Standard
65
Full Cream
25
Q7. What factor influenced you to buy particular milk brand?
Table 3.8 Factors that Influenced You to Buy Particular Milk Brand
Option No. of Respondents Percentage
Quality 40 40
Easy Availability 25 25
Price 15 15
Attractive Packing 5 5
Regular Supply 15 15
Total 100 100
Figure 3.7 Factors that Influenced You to Buy Particular Milk Brand
15
5 40
Quality
Easy Availability
Price
15
Attractive Packing
Regular Supply
25
26
Q8. What are the other factors that influence you to purchase particular brand of
milk?
Table 3.9 Other Factors That Influence You To Purchase Particular Brand Milk
Option No. of Respondents Percentage
Density of Milk 40 40
Creaminess 25 25
Freshness 15 15
Hygiene 5 5
Taste 15 15
Total 100 100
Figure 3.8 Other Factors That Influence You To Purchase Particular Brand Milk
15
5 Density of Milk
40 Creaminess
Freshness
15
Hygiene
Taste
25
27
Q9. Which of the following milk brand is superior in comparison to other milk
brands in terms of density, creaminess and freshness?
Table 3.10 Superior Brand in Comparison to Other Milk Brands
Response Verka Amul Mother Reliance
Dairy
Strongly Agree 65 15 5 0
Agree 20 45 15 20
Neutral 15 15 60 70
Disagree 0 5 20 10
Strongly Disagree 0 0 0 0
Total 100 100 100 100
28
CHAPTER-4
FINDINDS OF THE
STUDY
29
FINDINGS OF THE STUDY
All the respondents i.e. 100% are aware of various brands of milk.
Majority of respondents i.e. 50% use Verka brand followed by 25% respondents use
Amul and 10% each of the respondents use Mother Dairy and Reliance brands. The
remaining 5% use other brands of milk.
30% people came to know about Dairy products through reference group, 20% people
came to know about it through T.V. adds, 10% came to know about it through
internet portals, 20% got to know from hoardings and 10% each came to know
through newspaper.
Majority of respondents i.e. 80% are using dairy products from above 15 years
followed by 20% respondents from 10-15 years and the remaining 10% are running
from 5-10 years.
30% of the respondents shop dairy products at Kirana Store and 60% respondents
prefer supermarkets and the remaining 10% use other medium.
Majority of respondents i.e. 65% prefer to buy full cream milk followed by 23%
respondents prefer standard milk. Only few respondents prefer double toned and
toned milk.
Majority of respondents i.e. 40% are influenced due to quality factor followed by
25% respondents are influenced due to easy availability followed by 15% each of the
respondents due to price and regular supply. The remaining 5% are influenced due to
attractive packing factor.
Most of the respondents purchase milk due to density of milk followed by 25%
respondents due to creaminess. 15% each of the respondents purchase due to
freshness and taste. Only 5% say hygiene.
Majority of respondents i.e. 65% are strongly agree that Verka milk brand is superior
in comparison to other milk brands followed by Amul with 15%. Respondents are not
agree with Mother Dairy and Reliance milk brands.
30
CHAPTER-5
CONCLUSION OF THE
STUDY
31
5.1 CONCLUSION OF THE STUDY
Marketing is too important in the life of the Milk product that puts forward a proposal for
the improvement of the products’ characteristics and the turnover or sales of the product.
The experiences of the developed countries made it clear that it is necessary to evaluate
the consumer regularly and frequently so as to strategize suitable marketing practices
according to the changing consumer behaviour to tap, retain and to survive in the market.
All the respondents i.e. 100% are aware of various brands of milk. Majority of
respondents use Verka and Amul brand. Respondents shop dairy products at kirana Store
and supermarkets. Majority of respondents prefer to buy full cream milk. Only few
respondents prefer double toned and toned milk.
Majority of respondents are influenced for a particular brand due to quality factor and
easy availability. Most of the respondents purchase particular brand of milk due to
density of milk and creaminess. Majority of respondents are strongly agree that Verka
milk brand is superior in comparison to other milk brands followed by Amul.
Respondents are not agree with Mother Dairy and Reliance milk brands.
32
33
6.1 RECOMMENDATIONS OF THE STUDY
The main suggesstions of the study are as follows:
Amul, Reliance and Mother Dairy companies are also advised to strengthen their
supply chain and other logistics and use intermediaries to promote and make their
products available to the end consumer. The dairy companies in Jalandhar district
should make their products available in all leading convenience and retail stores.
The company retail outlets should be opened in large number to serve the customers
and care should be taken that these stores should not run out of stock or close on any
day.
The companies should give special benefits to the retailers who use cold storage
facilities to preserve the freshness of the Milk, which in turn becomes an advantage to
the company and develops the brand image.
The quality of milk packet should be improved in order to reduce leakage of milk.
34
BIBLIOGRAPHY
35
BIBLIOGRAPHY
Websites
www.milkfed.com
www.amul.com
www.google.com
www.indiadairyproducts.cm
Books
Health and hygienic food supplements, Kothari Brothers.
Punjab dairy union, magazines by Narula Brothers
Market research
36
ANNEXURE
37
QUESTIONNAIRE
Dear Respondent,
I, am a student of MBA 4th sem at AIMTC, Jalandhar. I am
conducting a study on the topic “Customer Perception towards Packed Milk
Products”. Kindly help me to gather the information by sparing your 5-10 minutes for
filling the questionnaire. I assure you that the information will be kept confidential. I will
be very thankful.
Demographic Profile
1) NAME: ……………………………….
2) AGE:
a) < 20years b) 20-40years c) 40-60years d) > 60years
3) GENDER:
Female Male
Q3. Which sources that makes you aware about dairy products?
Newspaper [ ] TV adds [ ]
Internet Portal [ ] Hoarding [ ]
Magazine [ ] Reference Group [ ]
38
Q5. From where do you shop dairy products?
Kirana Stores [ ] Supermarkets [ ]
Others [ ]
Q8. What are the other factors that influence you to purchase particular brand of
milk?
Density of Milk [ ] Creaminess [ ]
Freshness [ ] Hygiene [ ]
Taste [ ]
Q9. Do you agree that Verka dairy products are superior in comparison to other
dairy products?
Strongly Agree [ ] Agree [ ]
Neutral [ ] Disagree [ ]
Strongly Disagree [ ]
39
Q10. Which of the following milk brand is superior in comparison to other milk
brands in terms of density, creaminess and freshness?
Table 3.10 Superior Brand in Comparison to Other Milk Brands
Response Verka Amul Mother Reliance
Dairy
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
40