report
TRANSCRIPT
“A PROJECT REPORT ON CONSUMER PREFERENCES INBRANDED ATTA INDUSTRY”
(A Report submitted in partial fulfillment of the Requirements for the Degree of Master of Business Administration in Pondicherry University)
Submitted by:
ANUBHAV DAS
Enrollment No.: 2409360002
MBA: MARKETING
Session- 2010-12
DIRECTORATE OF DISTANCE EDUCATIONPONDICHERRY UNIVERSITY
PONDICHERRY - 605 014.
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Table of Contents1.)Background(Concepts & Industry Analysis) 6-61
Marketing, market Research & Branding 6-49
Industry Analysis 50-61
2.)Objectives & Methodology 62-63
Objectives 62
Methodology 63
3.) Data Analysis & Discussion…………………………………………………… 64-83
4.) Conclusion & Suggestion………………………………………………………84-95
Conclusion……………………………………………………………………………84-94 Suggestion………………………………………………………………………..........95
5.) Questionnaire……………………………………………………………………...96-99
6.) Bibliography………………………………………………………………………....100
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CERTIFICATE
This is to certify that the Project Work titled “A Project Report on
Consumer preferences in Branded Atta Industry” is a bona fide work of
Mr. Anubhav Das, Enrollment No.-2409360002 Carried out in partial
fulfillment for the award of degree of MBA (Marketing) of Pondicherry
University under my guidance. This project work is original and not
submitted earlier for the award of any degree / diploma or associate ship of
any other University / Institution.
Prashant Dutta Gupta
[B.Tech. (IIT Delhi),
PGDBA (IIM Ahmedabad)
FOSTIIMA Business School
Place: New Delhi
Date: 15-05-2011
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DECLARATION
I, Anubhav Das, hereby declare that the Project Work titled "Branded Atta
" is the original work done by me and submitted to the Pondicherry
University in partial fulfillment of requirements for the award of Master of
Business Administration in Marketing is a record of original work done by
me under the supervision of Prof. Prashant Dutta Gupta of FOSTIIMA
Business School.
Enroll No:
Date:
Anubhav DasMBA (Marketing)
Enroll No:
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ACKNOWLEDGEMENT
This project would not have been possible without the kind support and help
of many individuals and I would like to extend my sincere thanks to all of
them.
I am highly indebted to Mr.Prashant Dutta Gupta for his guidance and
constant supervision as well as for providing necessary information
regarding the project & also for his support in completing the project.
I would like to express my gratitude towards my parents & member of
FOSTIIMA Business School for their kind co-operation and encouragement
which help me in completion of this project.
I would like to express my special gratitude and thanks to people for giving
me such attention and time for the questionnaire filling, without which this
project could not have been completed.
My thanks and appreciations also go to my colleague in developing the
project and people who have willingly helped me out with their abilities.
INTRODUCTION TO MARKETING
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Marketing is "the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large." Marketing is a product
or service selling related overall activities. It generates the strategy that
underlies sales techniques, business communication, and business
developments. It is an integrated process through which companies build
strong customer relationships and create value for their customers and for
themselves.
Marketing is used to identify the customer, satisfy the customer, and
keep the customer. With the customer as the focus of its activities, it can
be concluded that marketing management is one of the major
components of business management. Marketing evolved to meet the
stasis in developing new markets caused by mature
markets and overcapacities in the last 2-3 centuries. The adoption of
marketing strategies requires businesses to shift their focus
from production to the perceived needs and wants of their customers as
the means of staying profitable.
The term marketing concept holds that achieving organizational goals
depends on knowing the needs and wants of target markets and
delivering the desired satisfactions. It proposes that in order to satisfy its
organizational objectives, an organization should anticipate the needs and
wants of consumers and satisfy these more effectively than competitors.
Marketing is further defined by the AMA as an organizational function and
a set of processes for creating, communicating, and delivering value to
customers and for managing customer relationships in ways that benefit
the organization and its stakeholders. The term developed from an
original meaning which referred literally to going to a market to buy or sell
goods or services. Seen from a systems point of view, sales process
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engineering marketing is "a set of processes that are interconnected and
interdependent with other functions, whose methods can be improved
using a variety of relatively new approaches."
The Chartered Institute of Marketing defines marketing as "the
management process responsible for identifying, anticipating and
satisfying customer requirements profitably." A different concept is
the value-based marketing which states the role of marketing to contribute
to increasing shareholder value. In this context, marketing is defined
as "the management process that seeks to maximize returns to
shareholders by developing relationships with valued customers and
creating a competitive advantage."
Marketing practice tended to be seen as a creative industry in the past,
which included advertising, distribution and selling. However, because the
academic study of marketing makes extensive use of social
sciences, psychology, sociology, mathematics, economics, anthropology
and neuroscience, the profession is now widely recognized as a science,
allowing numerous universities to offer Master-of-Science (MSc)
programmes. The overall process starts with marketing research and
goes through market segmentation, business planning and execution,
ending with pre- and post-sales promotional activities. It is also related to
many of the creative arts. The marketing literature is also adept at re-
inventing itself and its vocabulary according to the times and the culture.
EVOLUTION OF MARKETING
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An orientation, in the marketing context, related to a perception or attitude
a firm holds towards its product or service, essentially concerning
consumers and end-users. Throughout history, marketing has changed
considerably in conjunction with consumer tastes
Earlier approaches
The marketing orientation evolved from earlier orientations, namely, the
production orientation, the product orientation and the selling orientation.
Orientatio
n
Profit
driver
Western
European
timeframe
Description
Production Production
methods
until the
1950s
A firm focusing on a production
orientation specializes in
producing as much as possible of
a given product or service. Thus,
this signifies a firm
exploiting economies of scale until
the minimum efficient scale is
reached. A production orientation
may be deployed when a high
demand for a product or service
exists, coupled with a good
certainty that consumer tastes will
not rapidly alter (similar to the
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sales orientation).
ProductQuality of
the product
until the
1960s
A firm employing a product
orientation is chiefly concerned
with the quality of its own product.
A firm would also assume that as
long as its product was of a high
standard, people would buy and
consume the product.
SellingSelling
methods
1950s and
1960s
A firm using a sales orientation
focuses primarily on the
selling/promotion of a particular
product, and not determining new
consumer desires as such.
Consequently, this entails simply
selling an already existing product,
and using promotion techniques to
attain the highest sales possible.
Such an orientation may suit
scenarios in which a firm holds
dead stock, or otherwise sells a
product that is in high demand,
with little likelihood of changes in
consumer tastes that would
diminish demand.
Marketing Needs and 1970 to The 'marketing orientation' is
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wants of
customers
present
day
perhaps the most common
orientation used in contemporary
marketing. It involves a firm
essentially basing its marketing
plans around the marketing
concept, and thus supplying
products to suit new consumer
tastes. As an example, a firm
would employ market research to
gauge consumer desires, use R&D
to develop a product attuned to the
revealed information, and then
utilize promotion techniques to
ensure persons know the product
exists.
Distinctions between the Sales Concept and the Marketing Concept
1. The Sales Concept focuses on the needs of the seller. The
Marketing Concept focuses on the needs of the buyer.
2. The Sales Concept is preoccupied with the seller’s need to convert
his/her product into cash. The Marketing Concept is preoccupied with the
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idea of satisfying the needs of the customer by means of the product as a
solution to the customer’s problem (needs).
The Marketing Concept represents the major change in today’s
company orientation that provides the foundation to achieve competitive
advantage. This philosophy is the foundation of consultative selling.
Contemporary approaches
Recent approaches in marketing include relationship marketing with focus on
the customer, business marketing or industrial marketing with focus on an
organization or institution and social marketing with focus on benefits to
society. New forms of marketing also use the internet and are therefore
called internet marketing or more generally e-marketing, online marketing,
search engine marketing, desktop advertising or affiliate marketing. It
attempts to perfect the segmentation strategy used in traditional marketing. It
targets its audience more precisely, and is sometimes called personalized
marketing or one-to-one marketing. Internet marketing is sometimes
considered to be broad in scope, because it not only refers to marketing on
the Internet, but also includes marketing done via e-mail and wireless media.
Orientation Profit driver
Western
European
timeframe
Description
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Relationship
marketing
/Relationship
management
Building and
keeping good
customer
relations
1960s to
present
day
Emphasis is placed on the
whole relationship between
suppliers and customers.
The aim is to provide the
best possible customer
service and build customer
loyalty.
Business
marketing
/Industrial
marketing
Building and
keeping
relationships
between
organizations
1980s to
present
day
In this context, marketing
takes place
between businesses or orga
nizations. The product focus
lies on industrial
goods or capital goods
rather than
consumer products or end
products. Different forms of
marketing activities, such as
promotion, advertising and
communication to the
customer are used.
Social marketing Benefit to
society
1990s to
present
day
Similar characteristics as
marketing orientation but
with the added proviso that
there will be a curtailment of
any harmful activities to
society, in product,
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production, or selling
methods.
Branding Brand value
2000s to
present
day
In this context, "branding" is
the main company
philosophy and marketing is
considered an instrument of
branding.
Customer orientation
Constructive criticism helps marketers adapt offerings to meet changing
customer needs.
A firm in the market economy survives by producing goods that persons
are willing and able to buy. Consequently, ascertaining consumer
demand is vital for a firm's future viability and even existence as a going
concern. Many companies today have a customer focus (or market
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orientation). This implies that the company focuses its activities and
products on consumer demands. Generally, there are three ways of
doing this: the customer-driven approach, the market change
identification approach and the product innovation approach.
In the consumer-driven approach, consumer wants are the drivers of all
strategic marketing decisions. No strategy is pursued until it passes the
test of consumer research. Every aspect of a market offering, including
the nature of the product itself, is driven by the needs of potential
consumers. The starting point is always the consumer. The rationale for
this approach is that there is no reason to spend R&D funds developing
products that people will not buy. History attests to many products that
were commercial failures in spite of being technological breakthroughs.
A formal approach to this customer-focused marketing is known
as SIVA (Solution, Information, Value, and Access). This system is
basically the four Ps renamed and reworded to provide a customer
focus. The SIVA Model provides a demand/customer-centric alternative
to the well-known 4Ps supply side model (product, price, placement,
promotion) of marketing management.
Product → Solution
Price → Value
Place → Access
Promotion → Information
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If any of the 4Ps were problematic or were not in the marketing factor of
the business, the business could be in trouble and so other companies
may appear in the surroundings of the company, so the consumer
demand on its products will decrease.
Organizational orientation
In this sense, a firm's marketing department is often seen as of prime
importance within the functional level of an organization. Information
from an organization's marketing department would be used to guide the
actions of other departments within the firm. As an example, a marketing
department could ascertain (via marketing research) that consumers
desired a new type of product, or a new usage for an existing product.
With this in mind, the marketing department would inform the R&D
department to create a prototype of a product/service based on
consumers' new desires.
The production department would then start to manufacture the product,
while the marketing department would focus on the promotion,
distribution, pricing, etc. of the product. Additionally, a firm's finance
department would be consulted, with respect to securing appropriate
funding for the development, production and promotion of the product.
Inter-departmental conflicts may occur, should a firm adhere to the
marketing orientation. Production may oppose the installation, support
and servicing of new capital stock, which may be needed to manufacture
a new product. Finance may oppose the required capital expenditure,
since it could undermine a healthy cash flow for the organization.
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MARKET RESEARCH
"Marketing research is the function that links the consumer, customer,
and public to the marketer through information - information used to
identify and define marketing opportunities and problems; generate,
refine, and evaluate marketing actions; monitor marketing performance;
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and improve understanding of marketing as a process. Marketing
research specifies the information required to address these issues,
designs the methods for collecting information, manages and implements
the data collection process, analyzes, and communicates the findings and
their implications."
American Marketing Association (AMA) - Official Definition of Marketing
Research
The Marketing research Process
Marketing research is gathered using a systematic approach. An
example of one follows:
1. Define the problem. Never conduct research for things that you would
'like' to know. Make sure that you really 'need' to know something. The
problem then becomes the focus of the research. For example, why are
sales falling in New Zealand?
2. How will you collect the data that you will analyze to solve your
problem? Do we conduct a telephone survey, or do we arrange a focus
group? The methods of data collection will be discussed in more detail
later.
3. Select a sampling method. Do we us a random sample, stratified
sample, or cluster sample?
4. How will we analyze any data collected? What software will we use?
What degree of accuracy is required?
5. Decide upon a budget and a timeframe.
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6. Go back and speak to the managers or clients requesting the
research. Make sure that you agree on the problem! If you gain
approval, then move on to step seven. 7. Go ahead and collect the data.
8. Conduct the analysis of the data.
9. Check for errors. It is not uncommon to find errors in sampling, data
collection method, or analytic mistakes.
10. Write your final report. This will contain charts, tables, and diagrams
that will communicate the results of the research, and hopefully lead to a
solution to your problem. Watch out for errors in interpretation.
Sources of Data - Primary and Secondary
There are two main sources of data - primary and secondary.
Primary research is conducted from scratch. It is original and collected to
solve the problem in hand.
Secondary research, also known as desk research, already exists since
it has been collected for other purposes.
Primary marketing research is collected for the first time. It is
original and collected for a specific purpose, or to solve a specific
problem. It is expensive, and time consuming, but is more focused
than secondary research. There are many ways to conduct
primary research. We consider some of them:
1. Interviews
2. Mystery shopping
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3. Focus groups
4. Projective techniques
5. Product tests
6. Diaries
7. Omnibus Studies
1.0 Interviews.
This is the technique most associated with marketing research.
Interviews can be telephone, face-to-face, or over the Internet.
1.1 Telephone Interview.
Telephone ownership is very common in developed countries. It is ideal
for collecting data from a geographically dispersed sample. The
interviews tend to be very structured and tend to lack depth. Telephone
interviews are cheaper to conduct than face-to-face interviews (on a per
person basis).
Advantages of telephone interviews
Can be geographically spread
Can be set up and conducted relatively cheaply
Random samples can be selected
Cheaper than face-to-face interviews
Disadvantages of telephone interviews
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Respondents can simply hang up
Interviews tend to be a lot shorter
Visual aids cannot be used
Researchers cannot behavior or body language
1.2 Face-to-face Interviews.
Face-to face interviews are conducted between a market researcher and
a respondent. Data is collected on a survey. Some surveys are very rigid
or 'structured' and use closed questions. Data is easily compared. Other
face-to-face interviews are more 'in depth,' and depend upon more open
forms of questioning. The research will probe and develop points of
interest.
Advantages of face-to-face interviews
They allow more 'depth'
Physical prompts such as products and pictures can be used
Body language can emphasize responses
Respondents can be 'observed' at the same time
Disadvantages of face-to-face interviews
Interviews can be expensive
It can take a long period of time to arrange and conduct.
Some respondents will give biased responses when face-to-face with a
researcher.
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1.3 The Internet
The Internet can be used in a number of ways to collect primary data.
Visitors to sites can be asked to complete electronic questionnaires.
However responses will increase if an incentive is offered such as a free
newsletter, or free membership. Other important data is collected when
visitors sign up for membership.
Advantages of the Internet
Relatively inexpensive
Uses graphics and visual aids
Random samples can be selected
Visitors tend to be loyal to particular sites and are willing to give up time
to complete the forms
Disadvantages of the Internet
Only surveys current, not potential customers.
Needs knowledge of software to set up questionnaires and methods of
processing data
May deter visitors from your website.
1.4 Mail Survey
In many countries, the mail survey is the most appropriate way to gather
primary data. Lists are collated, or purchased, and a predesigned
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questionnaire is mailed to a sample of respondents. Mail surveys do not
tend to generate more than a 5-10% response rate. However, a second
mailing to prompt or remind respondents tends to improve response
rates. Mail surveys are less popular with the advent of technologies such
as the Internet and telephones, especially call centers.
2.0 Mystery Shopping
Companies will set up mystery shopping campaigns on an organizations
behalf. Often used in banking, retailing, travel, cafes and restaurants,
and many other customers focused organizations, mystery shoppers will
enter, posing as real customers. They collect data on customer service
and the customer experience. Findings are reported back to the
commissioning organization. There are many issues surrounding the
ethics of such an approach to research.
3.0 Focus Groups.
Focus groups are made up from a number of selected respondents
based together in the same room. Highly experienced researchers work
with the focus group to gather in depth qualitative feedback. Groups tend
to be made up from 10 to 18 participants. Discussion, opinion, and
beliefs are encouraged, and the research will probe into specific areas
that are of interest to the company commissioning the research.
Advantages of focus groups
Commissioning marketers often observe the group from behind a one-
way screen
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Visual aids and tangible products can be circulated and opinions taken
All participants and the research interact
Areas of specific interest can be covered in greater depth
Disadvantages of focus groups
Highly experienced researchers are needed. They are rare.
Complex to organize
Can be very expensive in comparison to other methods
4.0 Projective techniques.
Projective techniques are borrowed from the field of psychology. They
will generate highly subjective qualitative data. There are many
examples of such approaches including: Inkblot tests - look for images in
a series of inkblots Cartoons - complete the 'bubbles' on a cartoon series
Sentence or story completion Word association - depends on very quick
(subconscious) responses to words Psychodrama - Imagine that you are
a product and describe what it is like to be operated, warn, or used.
5.0 Product tests.
Product tests are often completed as part of the 'test' marketing process.
Products are displayed in a mall of shopping center. Potential customers
are asked to visit the store and their purchase behavior is observed.
Observers will contemplate how the product is handled, how the packing
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is read, how much time the consumer spends with the product, and so
on.
6.0 Diaries.
Diaries are used by a number of specially recruited consumers. They are
asked to complete a diary that lists and records their purchasing
behavior of a period of time (weeks, months, or years). It demands a
substantial commitment on the part of the respondent. However, by
collecting a series of diaries with a number of entries, the researcher has
a reasonable picture of purchasing behavior.
7.0 Omnibus Studies.
An omnibus study is where an organization purchases a single or a few
questions on a 'hybrid' interview (either face-to-face or by telephone).
The organization will be one of many that simply want to a
straightforward answer to a simple question. An omnibus survey could
include questions from companies in sectors as diverse as heath care
and tobacco. The research is far cheaper, and commits less time and
effort than conducting your own research.
Secondary marketing research, or desk research, already exist
in one form or another. It is relatively cheap, and can be conducted
quite quickly .However, it tends to have been collected for reasons
other than for the problem or objective at hand. So it may be
untargeted, and difficult to use to make comparisons (e.g. financial
data gather on Australian pensions will be different to data on
Italian pensions).
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There are a number of such sources available to the marketer, and the
following list is by no means conclusive:
Trade associations
National and local press Industry magazines
National/international governments
Websites
Informal contacts
Trade directories
Published company accounts
Business libraries
Professional institutes and organizations
Omnibus surveys
Previously gathered marketing research
Census data
PRIMARY DATA COLLECTION
Collection Methods
1) OBSERVATION
a) Natural setting
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b) Field experiment
Advantage minimizes response bias
Disadvantage l imited to measuring behavior
Time consuming
Subject to investigator bias
2) COMMUNICATION
a) Personal interview
Advantage permits detailed & in-depth questions
responses
Minimizes non-response
Disadvantage costly
Interviewer bias
Investigator bias
Interviewer cheating
b) Telephone Interview
Advantage convenient
Saves time
Relatively inexpensive
Less interviewer & investigator than
personal interview bias
Disadvantage non-coverage
Limited length & depth of questions
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and responses
c) Self-administered Questionnaire
Advantage cost effective for large areas
Minimizes interviewer bias
Promotes accurate answers
Disadvantage low response rates
Unanswered questions
Incorrect answers
Question Formats
1) OPEN-ENDED QUESTIONS: Respondents are given complete
freedom to answer in their own words.
Advantage a) eliminates "forced choice" bias
b) Unlimited response varieties
Disadvantage a) promotes investigator bias
b) Responses difficult to code and analyz
Best Use a) small scale exploration
b) Establishing rapport
c) As final question
d) to collect facts: e.g., age
2) CLOSED-ENDED QUESTIONS:
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A) Yes – No Questions: Respondents are limited to a positive or
negative position.
Advantage a) minimizes investigator bias
b) Responses obtained quickly
c) Coding is simple and inexpensive
Disadvantage a) simplistic / limits range of commitment
b) Wording can cause biases
Best Use a) telephone interview
b) self-administered questionnaire when
topic permits
B) Multiple Choice Questions: Respondents are limited to choice
of more than two positions.
Advantage a) minimizes investigator bias
b) Responses obtained quickly
c) Coding is simple and inexpensive
d) Permits greater range of commitment
than yes-no questions
Disadvantage a) good questions are difficult to write
b) Wording can cause biases
Best Use a) personal interview
b) Self-administered questionnaire
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c) Telephone interview if item is not too
complicated
4) Filter (Split or Branch) Question: Question designed to direct
respondents to different sections of the questionnaire.
Best Use To get answers for questions that are
appropriate for only part of the sample.
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Questionnaire Design
Preliminary Concerns
1. Consider the data collection method.
2. Consider the measurement scale and statistical analysis to be used.
Wording
1. Use correct grammar and sentence structure. Avoid slang and
colloquialisms.
2. Wording should be as simple as possible without being condescending
to respondent.
3. Use a conversational tone. Wording should be as closely as possible
to the manner in which people would talk to each other.
4. Wording should be neutral and clearly communicate the intent of
question.
Instructions
1. Instructions on how to answer should be communicated to the
respondent as part of the question.
2. Special instructions to the interviewer should be clear and located on
the questionnaire.
3. Clearly distinguish the instructions to the interviewer questions and
responses by always putting the instructions to the interviewer
CAPS, Italics, etc.
Content
1. Write brief questions.
2. Have a specific goal for each question.
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3. Make efforts to write questions that are valid measures of the study’s
variables.
4. Be careful not to assume behavior or knowledge on the part of any
respondent.
5. If a question contains facts, make sure they are accurate.
6. Carefully choose wording so that accurate information is collected.
Be precise and specific in the use of concepts (for example,
government--is it city, county, or federal?).
Be precise and specific regarding time, either as a period of recall or
as a time limit to a certain behavior.
Avoid "loaded" questions that suggest to respondents that one
answer is preferable to another.
Avoid double questions where two or more issues are mentioned.
Avoid all-inclusive terms such as "never" or "always."
Avoid the use of technical terms and abbreviations that can be
misconstrued.
Avoid the use of inflammatory words such as "racist" or
"exploitation."
7. Be sure all questions are relevant to the research goal.
8. Be certain all important questions are asked.
Response Categories
1. Response categories must match the attributes mentioned in question.
2. Response categories to closed-ended items must be:
Sufficiently exhaustive.
Mutually exclusive.
The categories respondents would naturally use to classify the item
or themselves.
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3. Questions may contain a response category of "don't know" or "no
answer/refusal."
Order
1. Treat all questions as part of a whole, not isolated or separate from
other items.
2. Remember that each question is perceived by the respondent to be in
a context of questions. Thus, answers to one question can be affected
by responses to others in the same group.
3. Questions should be grouped according to topic.
4. Within a topic it is usually best to arrange questions so they move from
general to specific.
5. The question order should permit the interviewer to keep the interview
moving at a conversational, yet purposeful pace. To achieve this:
Order questions using a logic that will make sense to the
respondent.
Use transitional statements freely so that the questions "flow"
easily one to another.
6. The first questions should be relatively easy-to-answer questions
that are related to the research topic that was expressed in the
introductory message or cover letter.
7. Place important/sensitive questions in the middle of the
questionnaire.
8. Place easy-to-answer questions, such as demographic items, at
the end of the questionnaire.
Format
1. Clearly distinguish questions from response categories.
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2. Vary response patterns and group topics as often as is practical to
prevent fatigue.
3. Avoid breaking a question between pages of the questionnaire.
4. Splitting complex issues into two or more simple questions in order to
eliminate respondent confusion and error.
5. Avoid questions that duplicate earlier items or appear to the respondent
to be redundant.
6. Precode the questionnaire. Include the response codes on the
questionnaire.
Pretest
Conduct a small-scale replica of the large-scale survey (plus some).
Step 1: Administer questionnaire to representative respondent in a
personal interview.
Step 2: Administer revised questionnaire on small scale using same
medium as final administration.
Step 3: Enter the data into a spreadsheet or statistical package and
tally results.
Step 4: Construct a SUMMARY SURVEY: a tally of response
frequencies recorded on a copy of the questionnaire.
Step 5: Revise questionnaire and repeat pretest as needed.
THINGS TO LOOK FOR WHEN PRETESTING
The answers obtained in pretests suggest variability in response, not
an "all or none" response pattern.
Non-substantive responses (for example, "I don't know" or refusals)
are at a minimum.
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There are no wording difficulties (for example, bad grammar, and
incomprehensible slang.)
The respondent does not ask the interviewer to explain or rephrase
the question.
The interviewers express no or minimal difficulty in administering the
question.
There are no difficulties entering or tallying the data.
Items for Inclusion with a Self-Administered Questionnaire
Mandatory
1. Prepare an introductory message to accompany the
questionnaire. It should contain information about the topic or
purpose of the research, the sampling procedure, protection of
the respondent’s confidentiality, and the name, address, and
phone number of a contact person.
2. Keep the questionnaire procedures simple.
3. Keep questionnaires as short as you can and ask only the
questions you are sure you need.
4. If you are asking questions that may be construed as personal
- such as sex, age, or income - explain why they are
necessary.
BRANDING
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David Ogilvy defines brands as “the intangible sum of a product’s
attributes: its name, packaging, and price, its history, its reputation, and the
way it’s advertised.”Kotler defines brands as “A brand is a name, term,
sign, symbol, or design or a combination of them, intended to identify the
goods and services of one seller or group of sellers and to differentiate
them from those of the competitor.”
The Dictionary of Business and Management defines a brand as:
“A name, sign or symbol used to identify items or services of the seller(s)
and to differentiate them from goods of competitors.”
Jared Spool, a web site usability expert, says, "Branding means creating
an emotional association (such as the feeling of success, happiness, or
relief) that customers form with the product, service, or company."
Walter Landor, one of the greats of the advertising industry, said:
“Simply put, a brand is a promise. By identifying and authenticating a
product or service it delivers a pledge of satisfaction and quality.”
Branding is supposed to be the process by which the true character and
purpose of the company is communicated. And this process is a strategy
that is consistently applied through the entire firm, hopefully creating an
aura of trust; an appreciation of your uniqueness; and a set of expectations
in your customers, shareholders and employees. Everything is consistent--
packaging, advertising, public relations
There are different ways to look at the meaning of brand and branding in
simple terms:
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A brand is a collection of perceptions in the mind of the consumer.
Brand is everything what you want to communicate to consumers and what
you communicate. By definition, “brand” is whatever the consumer thinks
of when he or she hears your company’s name.
A brand is a promise. By identifying and authenticating a product or service
it delivers a pledge of satisfaction and quality.
It’s a bundle of functional and emotional benefits
A name with a reputation
A mark of pride
A simplifier of choice
A product or service with an attitude
It is absolutely clear that a brand is very different from a product or service.
A brand is intangible and exists in the mind of the consumer. This definition
helps us understand the idea of brand loyalty and the 'loyalty ladder'.
Different people have different perceptions of a product or service, which
places them at different points on the loyalty ladder.
This brings us to the other vital connections of management, namely,
Positioning and Advertising of a product or service. Advertising has to sell,
and it achieves this by positively influencing people's perceptions of the
product or service. However, Advertising grabs customers’ minds.
ROLE OF BRANDS
In a world where products, markets, and industry boundaries are in flux, a
well-managed brand can be a prime source of strategic direction and
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competitive advantage. Today branding is such a strong force that
anything from salt to lemon juice and water is branded. The following are
the roles of branding which serve many purposes
1) A brand identifies the seller or maker.
2) A brand protects both the consumer and the producer from competitors who would attempt to provide products that appear to be identical.
3) A brand reduces the primacy of price upon the purchase decision.
4) It accentuates the bases of differentiation.
5) A brand is essentially a sellers promise to consistently deliver a specific
set of features, benefits and services to the buyers.
6) A brand gives the seller the opportunity to attract a loyal and profitable
set of customers. Brand loyalty gives sellers some protection from
competition and greater control in planning their marketing programs.
7) Strong brands help build the corporate image, making it easier to launch
and gain acceptance by distributors and customers.
8) Managing a positive brand image creates opportunities to introduce new
products that build on brand equity. It helps to attract and retain good
employees and it improves the stockholders
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BRANDING CHARACTERISTICS
The world is rapidly shrinking with the advent of faster communication,
transportation and financial flows. Products developed in one country –
Mont Blanc pens, McDonalds, BMW’s – are finding enthusiastic
acceptance in other countries.
A German businessman may wear an Armani suit to meet an English
friend at an Indian restaurant who later returns home to drink Russian
vodka and watch an American soap on a Korean television.
There are different aspects or levels of a brand, may it be of a product or
service which attract customers to build an image and an idea about that
product or service. There may be various viewpoints through which a
person may perceive the brand in a particular way.
Let’s take Mercedes Benz for example:
Attributes: Mercedes suggests expensive, well-built, well-engineered,
durable, high prestige, high value, fast and so on. The company may use
one or more of the attributes to advertise the car. For years, Mercedes
advertised “Engineered like no other car in the world”. This tagline
served as a positioning platform for the car’s other attributes.
Benefits: Customers are not buying attributes, they are buying benefits.
Attributes need to be translated into emotional and functional benefit, “I
am safe in case of an accident”.
Values: The brand also says something about the producer’s values.
Thus Mercedes stands for high performance, safety, prestige and so on.
The brand marketer must figure out the specific groups of car buyers
who are seeking these values.
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Culture: The brand may represent a certain culture. The Mercedes
represents German culture: organized, efficient, high quality.
Personality: The brand can also project a certain personality. If the
brand were a person, an animal, or an object, what would come to mind?
Mercedes may suggest a no-nonsense boss (person), a reigning lion
(animal), or an austere palace (object). Sometimes it might take on the
personality of an actual well-known person or spokesperson.
User: The brand suggests the kind of consumer who buys or uses the
product. We would be surprised to see a 20-year-old secretary driving a
Mercedes. We would accept instead to see a 55 year-old top executive
behind the wheel. The users will be those who respect the product’s
values, culture and personality.
TYPES OF BRAND
The functional dimension is the product’s attributes and benefits or the
tangible properties while the symbolic dimensions are the intangible
aspects of the brand. A marketer can combine these two elements to
create the ‘right’ appeal for customers. In consumer behavior the rational
and emotional perspectives are two models that explain how consumers
make purchase decisions. Successful branding, therefore, depends on
combining the rational and emotional components of a brand in a
manner that it becomes consistent with the consumer’s frame of mind.
FUNCTIONAL BRANDS
Here, the functional dimension of the brand is far more visible and
appealing than the emotional or symbolic dimension.
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Nivea’s range of body products focuses on the functional benefit of
smooth skin.
Also, buying of a painkiller would be by and large a rational, left brain
driven activity. What implications does one have for marketers of Aspirin,
Aspro, Anacin? Here the brand should be functions driven. That is,
the brand essence should revolve around ‘reasons’ demonstrating
product superiority in terms of its ingredients and efficiency of its pain
relieving process (e.g., the product “dissolves faster in water” and
therefore, “relieves pain faster.”
SYMBOLIC BRANDS
Here, the symbolic or emotional dimension is more prevalent than the
functional dimension. The decisions would be based on more of the
emotional aspect than that of rational aspect.
In the circumstances where consumer buying is emotions driven,
the brand must accordingly focus on symbolic or emotional
aspects.E.g. ICICI Prudential has various schemes concerning children’s
futures; this also stresses on the emotional aspect, caring for the child
and securing.
WHY IS IT DIFFICULT TO BUILD STRONG BRANDS?
For building an atta brand, it’s very difficult. Let’s look at some of the
major concerns & examples for the same.
It is difficult to build a strong brand in today's environment. The brand
builder can be inhibited by substantial pressures and barriers, both
internal and external. There are 8 different factors that make it
difficult to build brands:
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1. Complex branding strategies and brand relationships
2. The temptation to change identity/executions, organizational
3. Pressure to invest elsewhere
4. Pressures for short-term results.
One key to successful brand building is to understand how to
develop brand identities, to know what the brand stands for, and how to
most effectively express that identity.
1. PRESSURE TO COMPETE ON PRICE
There are enormous pressures on all firms to compete on price. Price
competition is at center stage, driven by powers of strong retailers, value
sensitive customers, reduced capacity growth and overcapacity.
Retailers have become stronger and use their powers to put pressures
on prices. Whereas a year ago information was largely controlled by the
manufacturer retailers are now collecting vast amounts of information
and developing models to use it. As a result there is an increasing focus
on margins and efficient use of space.
Orange versus BPL mobile services - What these cellular service
providers are doing is to compete with each other mainly on the basis of
price. If Orange is cutting its deposit amount, or reducing the general
rent or tariff or airtime charges, BPL has to follow the suit. Also the cola
companies like Coca Cola and Pepsi are continuously engaged in a
price war.
2. PROLIFERATION OF COMPETITORS
New, vigorous competitors come from a variety of sources. Additional
competitors not only contribute to price pressures and brand complexity,
but also make it harder to gain and hold a position. They leave fewer
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holes in the market to exploit and fewer implementation vehicles to own.
Each brand tends to be positioned more narrowly, the target market
becomes smaller and no target market becomes larger.
There are innumerous players in various product categories. One of
these is toothpaste. With products ranging from gel, tooth powder, herbal
pastes and striped paste – the market is quite clustered. The market is
so much saturated with different players in these markets that they keep
competing on the positioning of their brands, which has to be different
from the rest and thus cater to a particular segment of the population.
Like Close-up toothpaste which is positioned on the fact that it has
mouthwash for fresh breath and Colgate which stresses on its calcium
content for stronger teeth.
3. FRAGMENTATION MARKETS AND MEDIA
At one time being consistent across media and markets was easy as
there were a limited number of media options and only a few national
media vehicles. However the bewildering array of media options today
includes interactive television, advertising on the internet, direct
marketing, event sponsorship and more are being invented daily.
Coordinating messages across these media without weakening a brand
is a major challenge. Coordination is all the more difficult because
different brand support activities are often handled by different
organizations and individuals with varying perspectives and goals. In
addition companies are dividing the population into smaller and more
refined target markets, often reaching them with specialized media and
distribution channels. Although it is tempting to develop separate brand
identity for each of these target segments it presents problems for both
the brand and the customer. Since media audiences invariably overlap,
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customers are likely to be exposed to more than one identity relating to
the same brand.
The Coca-Cola ad featuring Aamir Khan is targeted at the retailers and
the rural market while the ad featuring Aishwarya Rai and Vivek Oberoi
is targeted at the urban consumers. As both these ads are going on
simultaneously the consumers tend to be exposed to both the rural as
well as the urban face of the brand.
4. COMPLEX BRANDING STRATEGIES AND RELATIONSHIPS
Different identities of brands and their extensions make both brand
building and managing it difficult. In addition to knowing its identity each
brand needs to understand its role in each context in which it is involved.
There is a tendency to use established brands in different contexts and
roles because establishing a totally new brand is very expensive. The
resulting new levels of complexity often are not anticipated or even
acknowledged until there is a substantial problem.
Henko Compact and Henko Stain Champion both belong to the German
firm Henkal. Although this is a line extension finding difference between
both these products is not easy. A number of questions like “Does the
name ‘stain champion’ mean Henko Compact does not remove stains?
Or does it mean that Stain Champion is a technologically inferior
product?” often cross the consumers mind when they consider these
brands for purchase. This is because the line extension and the
relationship of one product with another in this strategy are not
considered.
5. BIAS TOWARDS CHANGING STRATEGIES
There are sometimes overwhelming internal pressures to change a
brand identity and/or its execution while it is still effective or even before
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it achieves its potential. The resulting changes can undercut brand
equity or prevent it from being established. Promise toothpaste tried to
change its well set positioning and went in to emphasize the freshness
aspect of its paste rather than the well-established clove oil aspect. As a
result its sales went down.
6. BIAS AGAINST INNOVATION
Companies managing a established brand can be so pleased with past
and current success, and so preoccupied with day to day problems, that
they become blind to competitive situations. By ignoring or minimizing
fundamental changes in the competitive situation or potential
breakthroughs, managers leave their brands vulnerable and risk missing
opportunities. A new competitor is thus often the source and beneficiary
of true innovation.
Iodex became blinded and redundant after achieving the position of
market leader and preferred to rest on its laurels rather than go in for
product innovations and line extensions. As a result its leadership
position was lost to Moov, which positioned itself as a remedy for
backache and converted all the weaknesses of Iodex into its strengths.
Also Bata was the market leader for footwear but they did not adapt with
the changing times. As a result their sales went down. Currently
Liberty Footwear is the market leader.
7. PRESSURE TO INVEST ELSEWHERE
When a brand is strong there is a temptation to reduce investment in the
core business area in order to improve short-term performance or to
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fund new business diversifications. There is an often mistaken belief that
the brand will not be damaged by sharp reductions in support and that
the other investment opportunities are more attractive. Ironically the
diversification that attracts these resources is often flawed because an
acquired business was overvalued or because the organization’s ability
to manage a different business area was overestimated.
8. SHORT-TERM PRESSURES
Pressures for short-term results generally undermine investments in
brands. There are several reasons for this:
1. There is wide acceptance that maximization of stockholder value
should be the overriding objective of the firm.
2. Management style itself is dominated by a short-term orientation.
Annual budgeting systems usually emphasize short-term sales,
costs and profits. As a result brand-building programs are often
sacrificed in order to meet those targets.
3. Short-term focus is created by performance measures available.
Measurements of intangible assets such as brand equity,
information technology or people are elusive at best. Also long
term value of activities that will enhance or erode brand equity is
difficult to demonstrate whereas short-term performances like
impact of promotions can be tabulated easily. This results in
debilitating bias towards short-term results.
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It is true that that building brands is difficult. But it is doable as is evident
by those who have done so. The greatest examples of this are brands
like Titan, Coca Cola, Cadbury’s etc. We can thus see that it is possible
to build strong brands by building, managing and maintaining the four
assets that underlie brand equity-awareness, perceived quality, brand
loyalty and brand association.
Many companies, especially while introducing a new product in the
market find that sales cannot be sustained without constant advertising.
Sales charts always show a meteoric rise post-advertising burst.
Companies often rerun advertisement on different channels over the year
to sustain the brand awareness and ensure that the consumers are
exposed to the brand.
Complan repeats the same TV commercials for different target markets
over a period of time to ensure brand recall and visibility.
Factors Affecting Brand Awareness
Brand Awareness refers to the strength of a brand’s presence in the
consumer’s mind.
Awareness is measured according to the different ways in which
consumers remember a brand, ranging from recognition to recall to top of
the mind. Some of the major factors affecting brand awareness are: -
Brand Name: One of the most important factors affecting brand
awareness is the brand name. Brand name plays an important part
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in creating awareness for a brand. Also whether the name is really
very meaningful or completely baseless they both affect brand
awareness.
Bacardi Breezers - flavored aerated vodka based drink
Fevi Stik - adhesive
Centre Shock chewing gum.
Advertising: Advertising also helps to create Brand awareness in a
big way. Take any brand name Fevicol, Vicks, Pepsi all have used
ads for creating awareness among their consumers.
Celebrity: - Another important factor affecting Brand awareness is
the celebrities endorsing the Brand. Whenever you see a celebrity
you love endorsing a brand you tend to propagate the Brand.
Coca Cola experienced a tremendous increase in brand following post
ad campaigns with Hrithik Roshan and “Kaho Na Pyaar Hai”.
Parent Company:- To a large extent the parent company helps in
promoting a brand. The parent company in many cases is so popular
that its brand automatically become popular and people become
aware about the product.
TATA always promotes it brand with its name along with the brand such
as TATA INDICA, TATA INDIGO, TATA SALT.
Sales Promotions and Offers: - It also helps in making the
consumers aware of the brand. Some of the sales promotion
activities that companies carry out help them in a big way to make
their target aware of the brand.
Reliance India Mobile’s Monsoon Hungama offer, wherein they offered
their WLL services at an affordable price.
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1st Mover Advantage: - Usually the company that enters a product
category first has good awareness about its brand. Usually people
tend to remember the first player to enter the market.
Parle products “BISLERI” in the packaged water segment.
Public Relations: - The coverage that the fourth estate and
magazines provide a brand also helps in building awareness about a
brand.
The popularity of local restaurants such as J.W.Marriot has been boosted
by the page 3 mentions in the Bombay Times supplement of The Times
of India.
Direct Selling: - Some of the companies use direct selling as a
platform to create brand awareness.
Eureka Forbes water filter “AQUA GUARD”.
Peer Group Opinion: - Peer group opinion also plays an important
part in the whole brand awareness exercise. Usually people tend to
discuss a lot about the brand and tend to share their experiences or
some recent ad’s they have seen which in turn increases brand
awareness of their peers.
When opting for cellular network services (irrespective of prepaid or
billing), most people generally go by the opinions of their friends and
colleagues.
Recall Of Ads: - In some cases the brand awareness is also high
due to specific ad recall, which is very high.
Amaron battery advertisement of race between tortoise and rabbit with the
tagline “LAST LONG REALLY LONG”.
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BRAND RECALL- A BRAND BUILDING CONCEPT
A brand (Bisleri) is said to have recall if it comes to consumers’ minds
when its product class (mineral water) is mentioned.
It indicates stronger brand position in the mind. Still at a higher level is the
top of the mind recall; it is the brand, which comes first to the mind. The
top of mind awareness indicates a relative superiority a brand enjoys
above others. Sometimes a brand becomes so dominant that it becomes
the only recalled brand in the product category. Very few brands are able
to achieve dominance. The cases may include Johnson & Johnson baby
powder, Dettol antiseptic, Colgate and Cadbury
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INDUSTRY ANALYSIS
FMCG INDUSTRY IN INDIA
Fast Moving Consumer Goods (FMCG) goods are popularly named
as consumer packaged goods. Items in this category include all
consumables (other than groceries/pulses) people buy at regular
intervals. The most common in the list are toilet soaps, detergents,
shampoos, toothpaste, shaving products, shoe polish, packaged
foodstuff, and household accessories extends to certain electronic
goods.
These items are meant for daily of frequent consumption and have a
highreturn.
The Indian FMCG sector is an important contributor to the country’s
GDP. The FMCG sector is the fourth largest sector of Indian economy.
The FMCG market is estimated to treble from its current figure in the
coming decade.
The Indian FMCG sector is the fourth largest sector in the economy
with a total market size in excess of $13.1 billion. It has a strong MNC
presence and is characterized by a well established distribution
network, intense competition between the organized and unorganized
segments and low operational cost. Availability of key raw materials,
cheaper labor costs and presence across the entire value chain gives
India a competitive advantage.
The FMCG market is set to treble from $11.6 billion in 2003 to $33.4
billion in 2015. Penetration level as well as per capita consumption in
most product categories like jams, toothpaste, skin care, hair wash etc.
in India is low indicating the untapped market potential. Burgeoning
Indian population, particularly the middle class and the rural segments,
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presents an opportunity to makers of branded products to convert
consumers to branded products. Growth is also likely to come from
consumer 'upgrading' in the matured product categories. With 200
million people expected to shift to processed and packaged food by
2010, India needs around $28 billion of investment in the food-
processing industry.
In this year when almost all the stocks have been tumbled heavily on
the Dalal Street, the one sector which completely outperformed the
market is FMCG. During last 52 weeks the SENSEX has lost by
around 53%, while BSE FMCG has just lost by below 10%.
Sensex witnessed strong bull market journey with almost 7 fold gains
from 3000 in 2003 to 21000 in 2008, the FMCG did not match the
Index equivalently but managed to follow the trend by almost 3.5 times
gain for the same period. Now in a bear market scenario, the FMCG is
bucking the trend which is a big sigh of relief for investors
HUL led the way in revolutionizing the product, market, distribution and
service formats of the FMCG industry by focusing on rural markets,
direct distribution, creating new product, distribution and service
formats. The FMCG sector also received a boost by government led
initiatives in the 2003 budget such as the setting up of excise free
zones in various parts of the country that witnessed firms moving away
from outsourcing to manufacturing by investing in the zones.
Though the absolute profit made on FMCG products is relatively small,
they generally sell in large numbers and so the cumulative profit on
such products can be large. Unlike some industries, such as
automobiles, computers, and airlines, FMCG does not suffer from
mass layoffs every time the economy starts to dip. A person may put
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off buying a car but he will not put off having his dinner.
Unlike other economy sectors, FMCG share float in a steady manner
irrespective of global market dip, because they generally satisfy rather
fundamental, as opposed to luxurious needs. The FMCG sector, which
is growing at the rate of 9% is the fourth largest sector in the Indian
Economy and is worth Rs.93000 crores. The main contributor, making
up 32% of the sector, is the South Indian region. It is predicted that in
the year 2010, the FMCG sector will be worth Rs.143000 crores. The
sector being one of the biggest sectors of the Indian Economy provides
up to 4 million jobs.
LIST OF FMCG COMPANIES IN INDIA
A. ADF Foods Ltd, Ajanta Soya Ltd, Apeejay Tea Ltd, Assam
Company India Ltd.
B. Bajaj Hindustan Ltd., Bambino Agro Inds.
Ltd, Britannia Industries Ltd
C. Camson Bio Technologies Ltd, ChamanLalSetia Exports
Ltd, Colgate-Palmolive (India) Ltd
D. Dabur India Ltd, Dhunseri Tea &Inds. Ltd, Dollex Industries Ltd.
E. Eastern Sugar &Inds. Ltd, EID-Parry (India) Ltd., Emami Ltd
F. Flex Foods Ltd, Freshtrop Fruits Ltd
G. GlaxoSmithKline Consumer Healthcare Ltd, Godfrey Phillips
India Limited, Godrej Consumer Products Limited, Gujarat
Ambuja Exports Ltd
H. Henkel India Ltd, Himalya International Ltd, Hindustan Unilever
Limited
I. IB Infotech Enterprises Ltd, Indian Sucrose Ltd, ITC Limited, IVP
Ltd
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J. Jay Shree Tea &Inds. Ltd, JK Sugar Ltd
K. Kesar Enterprises Ltd, Kohinoor Foods Ltd, Kwality Dairy (India)
Ltd
L. Longview Tea Company Ltd, Lotte India Corpn. Ltd.,Lotus
Chocolate Company Ltd.
M. Mohan Meakin Ltd, Mount Everest Mineral Water Ltd, Muller &
Phipps (India) Ltd.
N. Natraj Proteins Ltd, NEPC Agro Foods Ltd, Nestle India
Ltd, Nirma Ltd
O. Orient Beverages Ltd, Oudh Sugar Mills Ltd
P. Parry Agro Inds. Ltd, Procter & Gamble Hygiene and Health Care
Limited
Q. -
R. Rei Agro Ltd, RT Exports Ltd, RTCL Ltd, Ruchi Soya Inds. Ltd
S. SampreNutritions Ltd, Simran Farms Ltd, Super Bakers (India)
Ltd
T. Tata Coffee Ltd, Tata Tea Limited, Temptation Foods Ltd, Triveni
Engineering &Inds. Ltd
U. United Breweries Limited,United Spirits Limited, Upper Ganges
Sugar &Inds. Ltd
V. Vadilal Enterprises Ltd, Venky'S (India) Ltd, Volga Air Technics
Ltd.
W.Warren Tea Ltd, Weikfield Products Company India Private
Limited, Wellwin Industry Ltd.
X. -
Y. -
Z. Zicom Electronic Security Systems Ltd., Zydus Wellness Ltd.
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TYPES OF FMCG COMPANIES
The FMCG sector consists of the following categories:
1. PERSONAL CARE
o Oral care, Hair care, Wash (Soaps), Cosmetics and
Toiletries, Deodorants and Perfumes, Paper products
(Tissues, Diapers, Sanitary products) and Shoe care.
o The major players being; Hindustan Lever Limited, Godrej
Soaps, Colgate, Marico, Dabur and Procter & Gamble.
2. HOUSEHOLD CARE
o Fabric wash (Laundry soaps and synthetic detergents),
Household cleaners (Dish/Utensil/Floor/Toilet cleaners), Air
fresheners, Insecticides and Mosquito repellants, Metal
polish and Furniture polish.
o The major players being; Hindustan Lever Limited, Nirma
and Ricket Colman.
3. BRANDED AND PACKAGED FOODS AND BEVERAGES
o Health beverages, Soft drinks, Staples/Cereals, Bakery
products (Biscuits, Breads, Cakes), Snack foods,
Chocolates, Ice-creams, Tea, Coffee, Processed fruits,
Processed vegetables, Processed meat, Branded flour,
Bottled water, Branded rice, Branded sugar, Juices.
o The major players being; Hindustan Lever Limited, Nestle,
Coca-Cola, Cadbury, Pepsi and Dabur
4. SPIRITS AND TOBACCO
o The major players being; ITC, Godfrey, Philips and UB
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RECENT DEVELOPMENTS IN (FMCG) SECTOR
FMCG sector is no doubt registering an up trend in growth. According
to CNBC, FMCG sector growth story will continue because of the
positive budget. Nevertheless, there are some barriers to the growth of
the sector. Indirect taxes constitute no less than 35% of the total cost
of consumer products - the highest in Asia. Last year, Finance Minister
proposed to introduce an integrated Goods and Service Tax by April
2010.This is an exceptionally good move because the growth of
consumption, production, and employment is directly proportionate to
reduction in indirect taxes.
Budget 2011 for FMCG Sector
Focus on rural lending and increase in capital of rural banks will
help farmer’s access cheap loans.
Various schemes for rural development will help improve the
living standards in the rural area and help provide better access
to the rural heartlands.
Readjustment of tax slabs will help increase the disposable
income in the hands of consumers.
Concessional duties and exemption of service tax will help boost
setting up of cold storages, cold units and refrigeration units..
Withdrawal of exemption on excise duty on various ayurvedic,
paper and food items will increase their prices.
Imposition of 1% excise duty on various food products is a
negative for companies like HUL, ITC, Nestle, Tata Tea, Tata
Coffee etc.
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Focus on rural spending is a big positive for most company as
they have started targeting the rural sector. These
include HUL, ITC, Marico, Godrej, Dabur, etc
Spending on setting up warehousing and cold storages is a big
positive as it helps provide better logistics and lowering of
wastes. The companies which would benefit are Nestle, HUL,
ITC, Britannia etc.
Branded flour market is highly unorganized is held by only a few
major players-
Hindustan Lever - Annapurna brand
Godrej Pillsbury - Pillsbury
Agro Tech - Healthy World
Nature Fresh
ITC - Aashirvaad
Shakti Bhog
While India has always been an attractive market because of its size,
several factors have fuelled the MNC’s' enthusiasm to enter the food
industry now.
Propelled by the increasing disposable income, the food sector has been
witnessing a marked change in consumption pattern. Currently, India is
the world’s second largest producer of food in the world and the food
processing industry is the one of the largest industries in India. In terms
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of production, consumption, export and expected growth, India is ranked
fifth in the world.
India’s food industry is valued at US$ 180 billion of which the food
processing industry is estimated at US$ 67 billion, according to a report
‘Food Processing and Agri Business’, done by KPMG.
The industry size has been estimated at US$ 70 billion by the Ministry of
Food Processing, Government of India. The food processing industry
contributed 6.3 per cent to India’s GDP in 2003 and had a share of 6 per
cent in total industrial production. The industry employs 1.6 million
workers directly. The industry is estimated to be growing at 9-12 per cent
during the period 2002 to 2007. Value addition of food products is
expected to increase from the current 8 per cent to 35 per cent by the
end of 2025. Fruit & vegetable processing, which is currently around 2
per cent of total production will increase to 10 per cent by 2010 and to
25 per cent by 2025. The highest share of processed food is in the dairy
sector, where 37 per cent of the total produce is processed, of this only
15 per cent is processed by the organized sector. The food processing
industry in the country is on track to ensure profitability in the coming
decades. The sector is expected to attract phenomenal investments of
about Rs 1,400 billion in the next decade.
Exports
Exports of agricultural products from India are expected to cross around
US$ 22 billion mark by 2014 and account for 5 per cent of the world’s
agriculture exports, according to the Agricultural and Processed Food
Products Export Development Authority (APEDA).
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Exports of floriculture, fresh fruits and vegetables, processed fruits and
vegetables, animal products, other processed foods and cereals stood at
Rs 17728.71 from September 2010-2011, according to DGCIS annual
data published by APEDA.
India will be setting up a global platform for spice trade. The organization
named World Spice Organisation (WSO) will be headquartered in the
Kochi, Kerela. Spice related organizations across the world will be
coordinating prices across the world and address the issue of food
safety regulations through WSO.
Spices
The export of spices and spice-based value added products during April-
February 2010-11 was US$ 1,323.28 compared to the US$ 1,063.44 in
the same period last year.
Fishery
Fish production of the country has been growing continuously with
improvement in productivity and utilization of untapped resources. The
total fish production is 6.4 million metric tons (mmt) of which 3.4 mmt is
inland and 3.0 mmt is marine production. The Fishery sector contributes
about 1.21 per cent of the total GDP and 5.37 per cent of the GDP from
agriculture sector and provides employment to 14 million people.
Food Processing
FDI inflows to Food Processing Industries has set a target of USD 25.07
billion to be achieved by 2015.
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Food processing industry is accounts for 32 per cent share in the entire
food industry. It comprises of 2 per cent of fruits and vegetables and 15
per cent of processed milk. This industry contributes to 6.3 per cent of
the GDP and about 13 per cent to export production. The food
processing industry is expected to witness a growth of 10 per cent in the
recent years to come.
The food processing sector attracted US$ 130 million of foreign direct
investment (FDI) in the first eight months of the fiscal as compared to
total FDI of US$ 1.2 billion.
Besides attracting FDI through schemes like mega food park, the
government has also extended several fiscal incentives during this
financial year to enhance FDI in food processing sector, including full
exemption from excise duty for specified equipments to preserve, store
or transport apiary , horticultural, dairy, poultry, aquatic and marine
produce and meat and its processing products.
INDIA is one of the world's largest food producers, yet branded foods
account for an inconsequential proportion. Among the various food
industry segments, the largest is wheat. Estimates of the industry's size
vary, but it is generally put at around Rs. 80,000 crores. This estimate
may be far off the mark, but there is no disputing the Indian market's
vastness for mass-consumption items such as wheat products.
Considering the industry's size and low brand penetration, international
giants have set their sights on the nascent Indian market for branded
wheat products -- biscuits, breads, packaged atta and innovations such
as chapattis.
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However, to ensure a full-fledged presence, companies still have to
overcome huge obstacles. One, imports are unviable in the long-run.
Indian food products are one of the cheapest in the world and competing
with them based on a strategy of imports is an unviable proposition. The
cost of labour is very low and even with a gradual decline in customs
duties; imports of even the high-priced varieties are likely to remain out
of the market's reach.
There are constraints on having a manufacturing presence as well. With
control still on raw materials, such as wheat and sugar, and a high
import tariff regime, it would not be easy for manufacturing companies to
control costs. Both these factors appear to give entrenched players an
advantage.
As for packaged atta, the idea of paying a price for hygiene has still to
sink in the urban and rural markets.
The demand explosion in India is predicated on the assumption that the
customer mindset has to change. This will happen only when the price is
right. In the last few years, customers worldwide have favored value-for-
money options, resulting in a noticeable decline in the premium
commanded by brands. The Indian consumer has always been price-
conscious. Against this backdrop, pricing is the key issue to be resolved
by these companies. This means companies have to investment
substantially to absorb the losses initially. And the extent of these
investments, by both established and new entrants, is likely to shape the
future of the Indian wheat products business.
The domestic branded atta market, estimated at 35,000-40,000 tonnes
per month, is currently growing by around 25 per cent annually. The
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packaged and branded segment is largely dominated by multinationals,
although there are also a few big domestic brands such as Shaktibhog,
Lal Qila and Rose.
Wheat constitutes a predominant part of staple food in India. Historically,
there had been no branding of these cereals. A few players have started
packaging and branding wheat flour and salt in the last few years.
Although the relative share of branded vs. unbranded sales is currently
minuscule, the sheer size of the market offers tremendous opportunity
for growth.
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OBJECTIVE
The basic objective of this project is to have an insight of the Branded
Atta Industry and to see what drives the big guns in such an industry
which has gone untapped since years. An attempt is made to
understand the consumer preference in such a product and what
companies can do to get the desirable market share because the key
here is volume. Also, we will try to see that what kind of new product
launch in this category will give the companies an upper hand.
India has always been an attractive market because of its size; several
factors have fuelled the Big guns enthusiasm to enter the food industry
now.
The developments on the foreign direct investment front allowing
companies to own 100 per cent in the food processing sector, the
removal of the dividend balancing norms, the reservation of select
segments in the food processing sector, has made a presence in the
Indian market a feasible proposition.
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METHODOLOGY
The survey was conducted in Ghaziabad and the respondents were
selected carefully so that the diverse culture of the town would help us to
study the consumption of atta by different religion in different forms.
Sampling:
Judgment Sampling was selected for the purpose of sampling.
Sample size
The sample size was restricted to 100 respondents but a diverse
sample was targeted.
Method of Collection:
The project demanded an extensive first hand data collection so
primary data was major source of information but even secondary data
through reliable sources played an important part in the completion of
the project
Tools for Survey:
A structured questionnaire was used to collect data so that it would
help in getting the best inputs in the project and a strategy could be
formulated based on the database.
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ANALYSIS OF DATA
PRIMARY DATA ANALYSIS
The primary data collection is one of the major sources of information in
such an industry because of diverse culture of respondents. The data
collected through structured questionnaire reflects various facts
regarding consumer behavior in relation to branded atta.
MARKET BREAKUP
Out of the total sample of 100 respondents from various locations all
over the city and belonging to different communities 55% of respondent
used chacki atta, 5% used home floor mill and remaining 40% used
packaged atta.
Market Break up
Chacki AttaHome floor millPackaged Atta
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BRAND PREFERENCE
The data reflects that among the respondents using packaged atta,
Aashirwad led the race with Annapurna with a equal preference of 35%
each whereas, Pillsbury Shakti bhog, Nature fresh and some others like
Roshan Atta finding their less preference.
Brand Preference
AnnapurnaAashirwadPillsburyCaptain CookOthers
A look couple of years ago and it clearly showed that Pillsbury was a
dominant player but the advantage of coming from the no 1 family of
FMCG has led the Annapurna to do a lot of catching. Due to its sheer
strength of understanding the market and already established
distribution network, it has given Pillsbury and Captain Cook a run for
their money.
Consumption pattern of atta
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Though atta can be consumed in any way therefore the questionnaire
was designed to study the overall average consumption of atta and the
average stood at almost 4 ½ kg per person per month.
The main consumption of atta was during the lunch hours and 50% of
the respondents consumed atta during lunch, 25% occasionally
consumed atta during lunch hours & remaining 25% never consumed
atta during lunch.
Consumption Pattern of Atta
FrequentlyOccasionallyNever
60% of the respondents consumed atta frequently during dinners also
reflecting the penetration of the product in the Indian market and also
proving the fact why all the biggies are eyeing this industry.
The consumption of atta during breakfast stood nominal with only 35% of
respondents consuming frequently, 15% occasionally and 50% never
consuming atta in breakfast.
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REASONS FOR USING CHACKI ATTA
This finding is a classification of different reasons given by respondents
for using chacki atta which is a major threat to anyone eyeing the
branded atta segment.
The survey reflects the major perception of respondent regarding chacki
atta and what is it that is restricting branded atta from penetrating the
market.
SR.NO. REASONS PERCEPTION ABOUT
CHACKI ATTA
1 QUALITY VERY GOOD
2 PRICE ECONOMICAL
3 TASTE GOOD
4 FRESHNESS EXTREMELY GOOD
5 ROLLABILITY GOOD
6 CONVENIENCE GOOD
As the table reflects chacki atta carries a very strong perception
regarding quality because here the consumer goes through a
psychological process wherein he himself selects the wheat and is
mentally satisfied because this has been in his tradition. Tangibility is a
major issue here.
The other major reason here is the price. The consumer in the whole
chacki system has thorough control over price because depending on
his financial position he selects the wheat and so controls the whole
process whereas this liberty is not available to him in branded atta.
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The other reasons are the freshness and the taste. In the chacki system
the whole control here is in the hand of the consumer because he has
liberty of going to the chacki whenever he wants and thus control the
freshness and the taste of the atta but the general perception about the
packaged atta is that it is a long process of manufacturing and
distribution and so the freshness of the atta may be at a risk.
Convenience and roll ability are among the other reasons given by
respondents in support of their using chacki atta.
Hence the data reveals that it is very difficult to change the mindset of
the customers regarding chacki atta.
REASONS FOR USING PACKAGED ATTA:
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The findings are a classification of the different reasons given by
consumers for using packaged atta and their support for different
qualities. The data reflects the various perceptions that the packaged
atta users carry.
SR.NO. REASONS PERCEPTION ABOUT
PACKAGED ATTA
1 QUALITY FAIR
2 PRICE HIGH
3 TASTE FAIR
4 FRESHNESS FAIR
5 ROLLABILITY FAIR
6 CONVENIENCE GOOD
As the data reveals that the packaged atta uses main reason for using it
is the convenience part. As the country gets more and more modernized
the penetration of women employment in the country is on the higher
side and this is the reason where all time saving products will get the
edge and so will branded atta.
The general perception of packaged atta is that it is not of good quality
because the consumer does not get choice to select the wheat which he
is addicted to do since decades.
The price is also perceived to be on the higher side and so it is not a
major incentive to attract consumers.
The freshness and taste is also a matter of concern because the
consumer does not know about the cycle of manufacturing and
distribution
REASONS FOR USING HOME FLOOR MILL ATTA:
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The penetration of home floor mill is negligible because of high cost
involvement of home floor machines but the consumers persisting on
quality and who can afford such an investment are very difficult to be
switched.
The table shows various advantages that a consumer perceives in home
flour mill atta.
SR.NO. REASONS PERCEPTION ABOUT
HOME FLOUR MILL
ATTA
1 QUALITY HIGH QUALITY
2 PRICE ECONOMICAL
3 TASTE GOOD
4 FRESHNESS GOOD
5 ROLLABILITY GOOD
6 CONVENIENCE LOW
As the table shows that except the convenience part of it in each and
every aspect the home flour mill gets an edge over packaged and chacki
atta.
The home flour mill atta consumers are very difficult to get switched
because of the investment and perceptions of their users.
Quality is the main reason for the users of home flour mill because the
whole process of the atta manufacturing is in their own presence and the
question of adulteration and malpractices does not arise.
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After having a look at the various reasons which induce the consumers
to choose among the 3 alternatives i.e. chacki atta, packaged atta, and
home flour mill atta lets have a look at various other facts that were
reflected through questionnaire.
DECISION MAKER
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As the data reflected it is the housewife in family who decides between
the alternatives of the atta i.e. chacki atta, packaged atta, and home
flour mill atta.
78% of times it is the housewife who decides between the various
alternatives of atta.
Decision Maker
HousewifeOthers
ANALYSIS OF PACKAGED ATTA USERS
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Packaged atta users as already discussed earlier are the consumers
who have shifted from chacki atta. There are rarely any cases wherein
one will find a shift of consumer from home flour mills to packaged atta.
Reasons of shifting from chacki atta to packaged atta
Reasons for Shifting
ConvenienceQualityBrand LoyaltyCost
As the graph represents the major reasons for shifting from chacki atta
to packaged atta is convenience. A house where almost both husband
and wife are earners there is very less time for activities like selecting
quality of wheat, going to the chacki and getting it grilled even there is
the problem of storage of wheat. These are some of the major cause of
inconvenience which leads to shift of consumer from chacki atta to
branded atta.
Quality of branded atta is perceived not as well as chacki atta because
still the brands are not able to communicate trust to the user and until
and unless this trust is achieved it would be very difficult for anyone to
penetrate this market.
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Some other facts came out that the mere switching is out of the brand
loyalty held in some other products. For e.g. the HLL brand Annapurna is
doing well because of the family it comes from. Same is the case with
Captain Cook whose brand loyalty is from the salt it manufactures and
the trust it is able to build in other brands.
Almost 10% of the respondents felt that the cost of branded atta was
economical and hence they were induced to switch from chacki atta to
branded atta. The other reason here is that the cost of branded atta
remained stable throughout the year whereas the cost of the wheat
depended on season and therefore was highly flexible.
Annapurna and Aashirwad remained market leader with major
respondents using them. The following graph represents usage of
various brands.
Brand Preference
AnnapurnaAashirwadPillsburyCaptain CookOthers
Top of mind recall .
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Top of mind recall
AnnapurnaAashiwadPillsburyCaptain cookOthers
As the graph represents the top of the mind recall for various brands
Annapurna, Aashirwad & Pillsbury almost share equal recall in the minds
of the respondents. Aashirwad has done a lot of catching by advertising
a lot, using its strong Distribution network to the best.
Brand Switching
A fact which would motivate any company to get into the kitchens of the
consumers as fast as it could. Brand switching is very low in case of
packaged Atta user. Almost 70% did not switch or even have tasted
other brand and they remained loyal to already using brand. The rest
30% did switch their brand incase of unavailability of their demanded
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brand.
Brand Switching
No brand switchingBrand switched
Advantage Of Packaged Atta over Chacki Atta
The only advantage that the branded atta carries over chacki atta is that
it has very high convenience factor and is a time saving product.
Changes, most desired in Packaged Atta
The changes demanded by consumers in their existing branded atta is
they want the cost to be reduced and they want the atta to remain fresh
for more longer time.
Important of Packaging
Packaging is a very important criteria for deciding which brand to
purchase good packaging can induce decision in some brand`s favor.
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Almost 60% of the respondents felt that it is of utmost important and it
did induce their buying decision. The main reason for laying importance
to packaging is because it is a daily use product and no one would like
to risk their family health due to negligence in packaging & thus hygiene.
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ANALYSIS OF CHACKI ATTA USERS
The chacki atta users make up the major part of the population. They
should be the target of the packaged atta industry and so it is necessary
to understand their habits and perception and design the whole
manufacturing, marketing and other activities to suit them the best. The
analysis of data of the chacki atta users is done below.
Price of wheat.
10-13 13-15 15-18 18-220%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Rs Per Kg
As the above graph indicates that the general price at which wheat is
brought is between 15-18 and they should be the main target of the
companies because it is between this price range that the packaged atta
falls. The other price range which also has major users are the 13-15
category whereas the category of 10-13 & 18-22 has marginal users.
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Awareness of Packaged Atta among Chacki Atta Users
The awareness of packaged atta does exist among the chacki atta
users. Although the awareness is minimal but the consumers do know
that there exist a branded atta segment and the major recall is of
Aashirwad , Pillsbury & Annapurna brand. Over the years due to
advertising, these brands have made a mark in the packaged atta
industry & also developed awareness for them.
Advantages of Chacki atta over branded atta.
Advantages of Chacki Atta
ConvenienceQualityCostHygiene
As the above diagram reflects Chacki Atta does score very high above
branded atta in various aspects, but among the various aspects cost is
the factor where chacki atta is very much ahead in the minds of the
consumer. The other major factors are the hygienic and the Quality
factors where consumer feels that they stand at an advantage over
packaged atta.
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The other fact that reflected in the data was that when asked if given
cost or quality advantage you would mind switching from chacki atta to
branded atta?
The following are the results.
Cost Advantage Shift
NoYes
Only 40% agreed to switch from Chacki atta to Packaged atta if given
cost advantage whereas 60% would still stick to chacki atta provided
they get the same quality which they are using at present. Another
finding that was revealed in the data was that out of 40% of
respondents who decide to switch to branded atta from chacki atta
almost 75% were from the respondents who used Rs13-15 per kg wheat
whereas the other category would not like to switch if given cost
advantage.
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Quality Advantage Shift
YesNo
As far as the quality advantage shift is concerned 65% of the
respondents would not mind switching from chacki atta to package to
branded atta if given good quality.
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ANALYSIS OF HOME FLOUR MILL USERS
At this stage the home flour mill users are very nominal. There is some
of the very quality conscious users who prefer home flour mill so that
they control the whole process at home.
Reason for preferring home flour mill Atta
QualityMalpracticesConvenienceCost
As the above graph indicates the main reason for using home flour mill
atta is Quality, backed by malpractices. Malpractices are one of the main
reasons because the chacki mill people are apt do such a thing. Almost
a kg or 750gms are lost when we give 10kg wheat to grind. To avoid
such malpractices some consumer switch to home flour mill.
The negative sides of home flour mill are the high cost and
inconvenience. A capital investment of almost Rs 8000 to 10000 is
required when one decides to buy a home flour mill. Also there is a lot of
inconvenience attached to home flour mill like maintenance, electricity
cost, and noise pollution etc which restricts mass switch over to home
flour mill.
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Also, People in Ghaziabad faced a lot of electricity problems & hence
they don’t want to get into all this business of home flour mills. However,
the people who have been using the home flour mill atta users are very
satisfied with the performance of their flour mill and at no point planning
to switch to packaged atta even if given high quality or lower cost
advantage. The satisfaction level of home flour mill is very high because
of service level provided by this mill companies like Navdeep & others.
CONCLUSION
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The next logical step after having seen the findings is to analyze the
findings to lead us to some concrete steps to be taken to build the brand,
but even before that, just by looking at the findings, I have tried to make
some conclusions.
1.) The market is heavily loaded in the favor of ‘Chacki atta’. Chacki atta is
at least perceived to be the best atta as far as quality& freshness is
concerned.
2.) We will have to provide the consumer ‘chacki ka atta’ only and the big
grinding mill ground atta will not do well. This is because even the
miniscule percentage of people using packaged atta want their atta to be
as close to the chacki atta as possible.
3.) The color, texture& packaging of the atta play a major role in the
purchase decision.
4.) The packaged atta users are dissatisfied with the high prices and are
looking forward to packaged atta convenience at chacki atta prices.
ANALYSIS
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After having seen the findings in detail we can now move on to analyze
the findings and use them in the manner in which they can help us. The
entire reason of undertaking this project was to understand the dynamics
of the market which would help successfully launch a new brand of atta
or reposition already existing atta with some additional features. When
one is launching a new brand in any product category, the major
emphasis is on ensuring that the newly launched brand enjoys some
amount of ‘brand equity’. Thus we shall analyze the findings and suggest
actions that need to be taken in order to build a strong brand.
‘Brand equity’ is a set of assets (and liabilities) linked to a brand’s name
and symbol that adds to (or subtracts form) the value provided by a
product or service to a firm and \ or that firm’s customers. The major
asset categories are:
1. Brand awareness
2. Brand loyalty
3. Perceived quality
4. Brand associations
Thus, the management of brand equity involves investment to create
and enhance these assets. In order to manage brand equity effectively
and to make informed decisions about brand building activities, it is
important to be sensitive to ways in which strong brands create value.
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But when we consider the four brand equity assets, two fact come to the
fore :-
Brand awareness will come with time and will infact be partly a result of
successful endeavors in the requisite assets. Apart from that brand
awareness will have to be established with constant advertising. In any
case that is something which takes secondary priority as of now.
Nevertheless some actions will have to be taken during (and even
before) the product launch to create brand awareness, but these will not
be a result of any analysis.
Similarly, brand loyalty will come (or may not come) after trial and
consequent satisfaction of the product by the consumer. In short these
two assets do not require to be dealt with in the form of analysis of
findings. Thus our focus will have to be on perceived quality and brand
associations.
Perceived quality
Perceived quality can be defined as the customer’s perception of the
overall quality or superiority of the product or service with respect to its
intended purpose, relative to alternatives. Perceived quality is, first, a
perception by customers. It thus differs from several related concepts,
such as:
Actual or objective quality
Product based quality
Manufacturing quality
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Perceived quality provides value in several ways.
They are:
1.) Reason to buy
2.) Differentiate/position
3.) Price premium
4.) Channel member interest
5.) Brand extensions
Even when we consider the case of our atta, each of the values will be
provided to the atta by the perception of quality. And hence it becomes
important for us to see ways in which we can build this perception of
quality.
Achieving perceptions of quality is usually impossible unless the quality
claim has substance. Generating high quality requires an understanding
of what quality means to customer segments. Now this where our
findings will come in handy. But before dwelling into that it is necessary
to consider what influences quality. Why do some customers believe that
the quality is high or low? What attributes do customers use to make
overall quality judgments? Thus we need to study the dimensions that
underlie a perceived quality judgement.
Harvard’s David a. Garvin suggests seven product quality dimensions.
These are:
1. Performance: how well does our ‘atta’ makes rotis?
2. Features: does the ‘atta’ have additional desirable features?
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3. Conformance with specifications: what is the incidence of defects?
4. Reliability: will the ‘atta’ make good rotis every time it is used?
5. Durability: how long will the ‘atta’ last?
6. Serviceability: is the service system efficient, competent, and
convenient?
7. Fit and finish: does the product look and feel like a quality product?
Thus we shall use our findings to ascertain each of the above
dimensions by answering these questions.
Performance: now the primary function of an atta is to make good soft
rotis and as we know that most of the chacki atta users give priority to
quality of atta and also to the hygienic part of chacki atta. Also this bit of
good rotis is not the reason for packaged atta users. Thus we will have
to give them good soft atta which makes good rotis. The fact that such
atta will have to be chacki made atta is another interesting fact.
Conformance with specifications and reliability:
In our case these mean that our atta will have to consistently prove to be
as good as chacki atta.
Serviceability:
In our case this would mean strong distribution.
Fit & Finish:
For this we need to look at the changes that the packaged atta users
desired.
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Price
Another variable that can be an important quality cue is price. A high
priced item is almost always associated with good quality. So this brings
us to the important topic of Pricing. Though a high price can translate
into good quality we need to keep in mind the following facts:
It is an entirely new brand
It comes from a company which is relatively unknown
And finally & importantly, most of the packaged atta users &
satisfied chacki atta users want a reduction in price.
At the same time a lesser price than competitors would translate as
‘cheap quality’. Thus it will be advisable to go for Competitive Pricing.
After discussing Perceived Quality at length we shall shift our focus to
the other asset of brand equity i.e. Brand Association.
BRAND ASSOCIATION
Brand Equity is supported in great part by the associations that
consumers make with a brand. These associations might include product
attributes, a celebrity spokesperson or a particular symbol. Brand
associations want the brand to stand for in the customer’s mind. A key to
building strong brands, then, is to develop & implement a brand identity.
Brand identity is a unique set of brand associations that a brand
strategist aspires to create or maintain. These associations represent
what the brand stands for & imply a promise to customers from the
organization members..
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After this we come to the Brand Identity system. To help ensure that the
brand identity has texture & depth, a firm should consider its brand as:
1. A product
2. An organization
3. A person
4. A symbol
The perspectives are very different. Now every brand identity needs to
employ all or even several of these perspectives.
The brand organization perspective focuses on attributes of the
organization rather than those of the product or service. Such
organizational attributes as innovation, a drive for quality and concern for
the environment are created by the people, culture, values, & programs
of the company.
The brand as person perspective suggests a brand that is richer & more
interesting than one based on product attributes. But here again the idea
of finding a person to be associated for a brand that is yet unknown is
not accepted. We should remember that we are in process of building a
brand & as such the brand as person as well as the brand as symbol
association is not the right approach.
Thus it seems to be worthwhile to go for the perspective of the brand as
a product. The product scope dimension says that the core element of a
brands identity is usually its product thrust, which will affect the type of
associations that are desirable & feasible. With what product or products
is the brand associated?
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The quality element is one product related attribute important enough to
be considered separately. But the problem again is that there has not
been any inducement to trial & we are still trying to build the Perceived
Quality asset.
Similarly association with use, users & Country of origin are dimensions
which are irrelevant in our case.
This brings us to the product attributes dimension. Attributes directly
related to the purchase or use of the product can provide functional
benefits and sometimes emotional benefits to the customers a product
related attribute could create a value proposition by offering something
extra or by offering something better.
Thus we will have build an association of the brand with the product
‘atta’ & further we will have to strive to associate our product with some
attribute . This can be our brand identity. This brand identity will initially
form the Core identity of our brand as being healthy & will eventually
lead to some extended identities.
After all this the bottom line is: The brand identity needs to provide a
value proposition to the customer. Brands value proposition is a
statement of the functional, emotional & self expressive benefits
delivered by the brand that provide value to the customer.
We can see that the functional benefits that our product will deliver will
be: rich healthy atta, which is of the right colour & which, makes good
soft rotis, which stay soft longer.
The emotional benefit delivered will be of feeling safe with a healthier
atta.
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The self expressive benefit will be delivered to the housewife who will
express her concern for her family by buying an atta, which is healthy &
economical.
Thus, finally with theses endeavors we can hope to achieve a Brand
Customer relationship.
With an identity in place & a value proposition specified, implementation
begins. Communication objectives need to be established & execution
planned & implemented. The place to start is with the brand position
statement the cornerstone of the communications program. When a
brand position exists, the brand identity & value propositions can be
developed fully.
Brand position is the part of the brand identity & value proposition that is
to be actively communicated to the target audience & that demonstrates
an advantage over competing brands.
Brand Positioning, as described by Al Ries & Jack Trout, is a mind
game. They describe positioning as a perception in the minds of the
consumer about your product. Thus positioning is where in the consumer
mind space does your brand figure. Now obviously while brand a unique
& favourable position in the consumers mind space.
Thus to do this we need to study the consumer mind space with respect
to that product category. This is done through ‘Perceptual Mapping’.
We know from our Findings that the chacki atta users cite Quality of the
atta as the main reason for using chacki atta & the packaged atta users
cite convenience as the main reason. Thus we shall work our perceptual
map around these two axes.
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As can be seen Chacki atta takes a position of high on quality but low on
convenience. Most of the packaged atta are clustered around the same
place as seen in the perceptual map. Pillsbury atta due to its strong
position as chacki atta goes higher in the quality axis. But the point to be
noted is that on the convenience axis not much can be differentiated
between the different brands. This means that we cannot play on the
convenience position at all simply because all the packaged atta’s are
convenient. Also we cannot immediately fight with the chacki atta on the
quality position as the sit high up (not more than Pillsbury at least). Thus
we realize the fallacy of this perceptual map. Since we are not
contesting with the chacki class for space immediately we shall our focus
to making a perceptual map for the different brands.
The most strategically logical position will not be worth implementing if a
brilliant execution cannot be found. Thus the onus lies on the
communication to carry the desired position across to the consumer.
Whether this is done or not should be found out regularly & this is called
Tracking. But as is clear implementation & tracking is purely a
communication domain & is out of the purview of this project.
Thus we have worked through the entire gamut of activities needed to
build brand equity & have decided on certain facts. Since it is yet not
comprehensive we can only venture to make certain suggestions for the
Brand.
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SUGGESTIONS
Finally, after having analyzed the findings in some detail, we are in a
position to make a few suggestions as to the actions to be taken towards
building the brand & successfully launching the new product & brand.
Suggestion
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1. Organize housewives kitty parties & gatherings & ask them to use
& try the product for the party. This will serve the dual purpose of
trial & feedback & thus can be done even before the launch as a
method of test launching.
2. Have test launch with various office canteens where the shift
would be fast because the key attribute to them is the cost and if
the response is positive then offer tie-ups wherein a contract can
be signed which would be a win-win situation for both the canteen
as well as the company.
3. Create more awareness among the public about the quality of the
branded atta with the help of various tools of communication.
4. Create awareness about the various malpractices done by chacki
operators and how adulteration is done by them.
5. Provide some more value to the product with giving some freebies
and also sharing various recepies with consumer.
6. Communicate atta as a time saving product because time saving
products are call for the day.
QUESTIONNAIRE THROUGH WHICH DATA WAS
COLLECTED
Dear Sir/Madam,
96
It is my pleasure to take this opportunity to reach you all through
this questionnaire. I hope with your expert knowledge this project would
be a success.
Name:
Age:
Occupation:
No of Members in Family:
Monthly Consumption of Atta:
Caste:
Religion:
No Of time Consumption of Atta (in any form) in a day:
(1) Breakfast (2) Lunch (3) Dinner
frequently
occasionally
never
( tick wherever applicable)
Current Usage:
Packaged Atta [ ] Chacki Atta [ ] Home chacki Atta [ ]
If using Packaged Atta please answer the following questions.
(1)Whose decision was it to go for packaged atta?
(2)What were you using before using packaged atta?
(3)Any major reason for switching to packaged atta?
[ ] convenience [ ] quality [ ] brand loyalty [ ] cost [ ] others please
specify
______________
97
(4) Which is your current brand?
(5)Which other brand are you aware of?
(6) Have you ever used any other branded atta?
[ ] Yes [ ] No
(7) What advantage do you think does your brand give over any other
brand of branded atta?
[ ] convenience [ ] quality [ ] brand loyalty [ ] cost [ ] others please
specify
__________
(8) What advantage do you think does your brand give over chaki
atta?
[ ] convenience [ ] quality [ ] brand loyalty [ ] cost [ ] others please
specify
__________
(9) If asked as an expert what other changes would you suggest to
your current brand?
(10) If other brands implement the above changes would you switch
your brand?
(11) Do you give importance to the package designing of branded
atta?
[ ] Yes [ ] No
If using Chaki Atta please answer the following questions
(1)At what price do you buy wheat?
98
[ ] 10-13 [ ] 13-15 [ ] 15-18 [ ]18-22 [ ]>22
(2)Are you aware of branded atta?
[ ] Yes [ ]No
(3)Which brand are you able to recollect if you are aware of branded
atta?
(4) According to you what advantage does chaki atta have above
branded atta?
[ ] convenience [ ] quality [ ] hygienic [ ] cost [ ] others please
specify
__________
(5) If given Cost Advantage would you switch from chaki atta to
branded atta?
[ ] Yes [ ] No
(6)If given Quality Advantage would you switch from chaki atta to
branded atta?
[ ] Yes [ ] No
If using Personal floor mill please answer the following
questions.
(1) Why did you go for Personal floor mill?
[ ] convenience [ ] quality [ ] hygienic [ ] cost [ ] malpractices [ ]
others please specify__________
(2) Are you aware of branded atta?
[ ] Yes [ ] No
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(3) Which brand are you able to recollect if you are aware of branded
atta?
(4) If given Cost Advantage would you switch from Personal floor mill
atta to branded atta?
[ ] Yes [ ] No
(5) If given Quality Advantage would you switch from Personal floor
mill atta to branded atta?
[ ] Yes [ ] No
(7)Are you satisfied with performance of your personal floor mill?
[ ] Yes [ ] No
I thank you for sharing your valuable time and knowledge
patiently.
BIBLIOGRAPHY
1. MARKETING MANAGEMENT : PHILIP KOTLER
100
2. http://www.naukrihub.com/india/fmcg/overview/branded-flour/
3. Wikipedia.org
4. www.fibre2fashion.com
5. www.drypen.in
6. www.Smallbusinessnotes.in
7. www.Indiainfoline.com
8. www.marketing.about.com