sip report
DESCRIPTION
SIP REPORT ON FROZEN FOODTRANSCRIPT
Introduction
1.1 What is the project?
These underlying foundations of demand, therefore, are the model of how customer behaves. An
Individual customer has a set of preferences and values whose determinations are outside the
realm of economics. They are no doubt dependent upon culture, education, and individual tastes
among a plethora of other factors. The measure of these values in this model for particular
products was in terms of the real opportunity cost to the customer who purchases and consumes
the products. If an individual purchases a particular good, then the opportunity cost of that
purchase is the forgone goods the consumer could have bought instead. We develop a model in
which we map or graphically derive customer preferences. These are measured in terms of the
level of satisfaction the consumer obtains from consuming various Combinations or bundles of
goods. The customer’s objective was to choose the bundle of goods which provides the greatest
level of satisfaction as they are the customer who defines it. But customers are very much
constrained in their choices. These constraints are defined by the customer’s income and the
prices the customer pays for the products.
Companies routinely test the market to find out what customers like and dislike about their
products and competitors' products. This was usually done by an internal marketing department or
outsourced to a market research firm. Phone interviews, paper surveys, electronic surveys, focus
groups and customer samplings are common methods for gathering information.
Buying Behavior is the decision processes and acts of people involved in buying and using
products.
Need to understand:
o Why customers make the purchases that they make?
o What factors influence consumer purchases?
o The changing factors in our society.
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1.2 Definition and Purpose of the Project
Preferences are the desires by each individual for the consumption of goods and services that
translate into choices based on income or wealth for purchases of goods and services to be
combined with the consumer's time to define consumption activities.
The basic reason behind carrying out this project was to understand what did customer know
about frozen food product and how did they approach while buying McCain as a frozen food. As
it was a radical approach to know what factors affects various customers while purchasing
McCain as a frozen food product and to know various customer preferences while purchasing it.
Are these radical changes giving favorable results or not? Has customer satisfaction level gone
up? These are some of the questions continuously arising? Behind all these was one basic motto
i.e. to improve the customer preference level by providing the right material to the right place in
right time
1.3 Scope of project
Functional Scope
This Report would help to understand the customer’s behavior towards purchasing the frozen
food product. It also opens various factors which can affect the purchase decision. And it provides
a frame mind of people what are the expectations of customers and up to how much level these
expectation meets. This Report would be helpful for buyers and Companies, So that they can
understand the consumer behavior and can satisfy the consumer on better manner. The second
function is to understand what is the market penetration of McCain frozen food product among
various competitors so that it will increase customer awareness of McCain frozen product.
Geographical Scope:
This project was conducted in the various areas of Pune like Waked, Aundh, Baner, Pune camp,
Sadashiv Peth, Mundwah, Koregaon Park, F.C. road, Deccan Swargate, Salisbury Park etc.
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Analytical Scope
The analytical scope of the project includes the understanding of frozen food product in terms of
quality, packaging, labeling, pricing etc. also analyzing the presence of various competitors of
McCain in market meeting various caterers to analyze the awareness of McCain frozen food and
knowing the customer preferences among various frozen product and drive regarding the purchase
behavior of frozen food.
1.4 Salient Contribution of Project
The project basically deals with the customer preferences and buying behavior of frozen food
product. This study are helping to find out the buying behaviour of various customers in the form
of caterers while purchasing frozen food product, it also helps to find out which all factors
influence consumer behaviour on McCain frozen food product. It also helps to find out the
various customer preference of buying McCain as a frozen food product.
1.5 Outline of the study
The outline and framework of the study basically relate to the following points
• Conducted survey of various caterers at Pune city.
• Conducted other ways of collection of data.
• Gathered the data and analyzed it.
• After analyzing the interpretation of data was done.
• This information was used for recommendation and conclusions.
• In this manner the whole study of customer preference and buying behaviour of frozen
food was conducted
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Industry Overview
The food processing industry provides vital linkages and synergies between industry and
agriculture.
The food processing industry in India is one of the largest in terms of production, consumption,
export and growth prospects. The government has accorded it a high priority, with a number of
fiscal reliefs and incentives, to encourage commercialization and value addition to agricultural
produce, for minimizing pre-/post-harvest wastage, generating employment and export growth.
India's food processing sector covers a wide range of products - fruit and vegetables; meat and
poultry; milk and milk products, alcoholic beverages, fisheries, plantation, grain processing and
other consumer product groups like confectionery, chocolates and cocoa products, Soya-based
products, mineral water, high protein foods and so on.
The Indian food processing industry is one of the largest in the world in terms of production,
consumption, export and growth prospects. Earlier, food processing was largely confined to the
food preservation, packaging and transportation, which mainly involved salting, curdling, drying,
pickling, etc. However, over the years, with emerging new markets and technologies, the sector
has widened its scope. It has started producing many new items like ready-to-eat food,
beverages, processed and frozen fruit and vegetable products, marine and meat products, etc. It
also includes establishment of post-harvest infrastructure for processing of various food items
like cold storage facilities, food parks, packaging centers, value-added centers, irradiation
facilities and modernized abattoir.
India has a strong agricultural production base with diverse agro-climatic conditions and arable
land of 184 million hectares. It is one of the major food producers in the world and has abundant
availability of wide variety of crops, fruits, vegetables, flowers, livestock and seafood. India
produces annually 90 million tons of milk (highest in the world); 150 million tons of fruits and
vegetables (second largest); 485 million livestock (largest); 204 million tons of food grains (third
largest); 6.3 million tons of fish (third largest); 489 million poultry and 45,200 million eggs. As a
result, Indian food processing industry has become an attractive destination for investors the
world over. The size of the semi-processed and ready to eat packaged food industry is over Rs.
4,000 crore (US$1 billion) and is growing at over 20%.
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Indian frozen foods
India is a large producer of food and is offering different opportunities and business propositions
in food and food processing technologies, skills and equipment. The food-based industries
encompass canning, dairy and food processing, specialty processing, packaging, frozen food/
refrigeration and thermo-processing.
Products which come under the frozen food industry are fruits, vegetables, fisheries, milk
products, meat, poultry and other packaged and convenience foods. Although it is a huge
producer of food products, India still has immense untapped potential in the frozen food export
industry. The demand for Indian recipes from the Indian diaspora settled across the globe has
served as an impetus to development of the frozen food industry in recent years. Vegetables like
drumsticks and okra and prepared food like chapattis and parathas are nowadays available in
frozen form in neat packets all over the world. The Indian frozen food market generated total
revenues of $325.9 million in 2010, representing a compound annual growth rate (CAGR) of
16.6% for the period spanning 2006-2010.
Frozen meat products' sales proved the most lucrative for the Indian frozen food market in 2010,
generating total revenues of $124.2 million, equivalent to 38.1% of the market's overall value.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 13.6% for
the five-year period 2010-2015, which is expected to lead the market to a value of $617.5 million
by the end of 2015.
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Company overview
McCain Foods Ltd.
McCain Foods Ltd. is the world's largest producer of French Fries and Potato Specialties. Located
in Florenceville, New Brunswick, Canada, McCain has grown to become a global leader in the
frozen food industry. From Canada, across the world to Japan, from the tip of Argentina to
suburbs in Australia, our tasty and convenient food products are served in restaurants and sold in
retail stores; adding nutrition and flavour to family meals time after time.
McCain Foods India Pvt. Ltd.
McCain Foods (India) is a wholly-owned subsidiary of McCain Foods Limited in Canada. Since
1998, McCain has been engaged in agriculture R&D and in development of frozen food market in
India and subcontinent countries. McCain products are used by leading fast food chains, hotels,
restaurants, catering companies and are popular for in-home consumption.
At McCain, it's our constant endeavor to create good food that is delightfully fresh. In order to
maintain an impeccable standard of quality, we strive to use the highest quality ingredients. Our
products are prepared simply with wholesome ingredients made by good people who care about
delivering quality in every box, every bag and every bite.
McCain focuses on providing great variety to customers and consumers. A delectable range of
products is available, world favorites like McCain French Fries, McCain Smiles and local delights
such as McCain Aloo Tikki, Idli Sambar Combo and real cheese appetizers like McCain Cheese
& Jalapeno Nuggets and Potato Cheese Shotz.
o Global sales of over $6 billion.
o Products marketed in 160 countries world over.
o One in every three French fries around the world is a McCain fry.
o 50 manufacturing facilities around the world.
o World class potato processing plant in Mehsana district of Gujarat.
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History of McCain
In 1957 Wallace and Harrison McCain supported by brothers Andrew and Robert, founded
McCain Foods Limited in Florenceville, New Brunswick, Canada. Immersed in agriculture from
an early age, it was their father’s search for stability as a grower that led the McCain brothers to
the idea of frozen food company-building factories to process regionally grown crops would
demand for the raw materials. The knowledge gained in Florenceville with first factory, and the
acquired expertise in agronomy, provided the formula for expansion around the world.
In the early 1900s, Andrew (A.D) McCain saw an opportunity to expand beyond farming and
selling potatoes locally. In 1909 he created McCain Produce, a seed potato export company. His
sons Wallace and Harrison McCain wanted their own business brother Robert suggested they
consider frozen foods.
This defining moment was to be truly frozen in history. Since its modest beginnings with just 30
employees and first year sales of $152,678, McCain has grown to be a household name- a multi-
billion dollar, multinational leader in frozen food products creating thousands of jobs and feeding
families around the globe.
While it was a modest beginning they couldn’t have started at a better time. Harrison and Wallace
McCain had identified the perfect time to start business. They were entering new industry just
when the technology that made the industry possible was being developed and the 1950s saw the
surge of growth in processed and more convenient food options. The Canadian population was
growing rapidly.
Today McCain Foods Limited has more than19,000 employees working in 50 factories on six
continents around the world and has grown to be a household name – a multibillion dollar,
multinational leader in frozen food products creating thousands of jobs and feeding families
around the globe
Vision & mission
1) One aligned global organization
2) Leverage scale, technology and science for competitive advantage and differentiation
3) Bring the goodness of McCain potatoes and value added food products to all
4) Transforming Day & Ross into full service transportation company
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Quality policy-
There is no higher priority for a food company than the safety of its products. At McCain we are
committed to providing our customers and consumers with food they can trust to be safe,
nutritious and taste great.
Led by our Global Quality Council, we employ a comprehensive food safety and quality
management program within each of our manufacturing facilities worldwide. This program
includes strict manufacturing procedures, expert leadership and thorough employee training,
ongoing processes are consistent and the collaboration delivers continuous quality improvement.
Food Safety Principles
McCain’s expectations are clearly communicated to all employees and partners from farm to fork
McCain’s value and encourage continuous improvement in our people our products and our
quality and food safety systems. McCain use external food safety audits to monitor the
compliance of McCain processing plants and our food safety programs to ensure they
internationally recognized standards.
Products
McCain foods India consists of following products-
French Fries
Masala Fries
Savoury Wedges
Smiles
Aloo tikki
Chilly garlic potato Pops
Hash browns
Chili Pepper & Cheese Bites
Mozzarella Cheese Sticks
Onion Rings
Sweet Corn Nuggets
Veggie Nuggets
Burger Patties
Herb Chilli Patty
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Competitors
Sumeru:
Innovative Foods Limited (IFL) is the leading frozen food player in the country and retails its
products under the brand name ‘Sumeru’. IFL retails its multi category product portfolio across
the country with presence in all major modern trade counters and has built a pan India distribution
network covering top cities and towns. IFL is a leading supplier to large food service players and
has also established presence in key Indian ethnic export markets viz USA, Canada and UK. IFL
has its manufacturing facility located in the southern Indian state of Kerala, Kochi.
Al Kabeer:
The Group has invested in manufacturing units around the world in locations most appropriate to
ensure the highest possible quality. For instance, by carefully controlling the primary processing
of fresh shrimp on the shores of Bahrain, vegetables at our farms in Hyderabad, and of meat at
our unit in Mumbai, we can ensure the quality of the raw materials used in our retail products.
These raw materials are converted under even stricter conditions into the various products we
offer, at dedicated units located in Dubai and Sharjah in the UAE, Market Rasen in England, and
most recently at Deonar in Mumbai, India.
Venky’s:
The VH group was established in 1971, when motivated by his wife Late Smt. Uttaradevi Rao,
our founder Chairman Late Padmashree Dr. B.V.Rao, fondly referred to as “The Father of the
Indian Poultry Industry”, established Venkateshwara Hatcheries Pvt. Ltd. in Pune (India). Today
the group is popularly known the world over as “Venky’s”. With a unique combination of
expertise and experience and supported by strategic collaborations, the company diversified its
activities to include SPF eggs, chicken and eggs processing, broiler and layer breeding, genetic
research and Poultry diseases diagnostic, Poultry vaccines and feed supplements, vaccine
production, bio-security products, Poultry feed & equipment’s, nutritional health products, soya
bean extract and many more. Today the group is the largest fully integrated poultry group in Asia.
Suppliers:
Responsible purchasing is core to our business and inextricably linked to our ability to create
sustainable and profitable growth. By choosing to work with suppliers that respect compliance,
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human rights, decent working conditions and strong environmental standards, we create value for
our customers and minimize our business risk.
Since McCain was founded, we have had supplier contracts in place that incorporate the most
recent food safety and quality assurance, and we take steps to ensure compliance with these
contracts.
Customers:
McCain’s customers are generally the house hold members. The company mainly targeted the
mothers of India. The reason behind this is that the kid gets bored by having same food every day
in the school. So McCain introduced products like smiley which is very popular among the
children.
Awards and Achievements:
McCain Foods India receives SIAL d’OR Country Award 2010 for McCain Aloo Tikki in 2010:
McCain Foods India Pvt Ltd, the Indian subsidiary of McCain Foods Ltd (Canada), has received
SIAL d’OR Country Award 2010, for the commercial success of its Indian product - McCain
Aloo Tikki, at the SIAL Show in Paris, France. McCain Aloo Tikki, being the highest scoring
Indian product amongst participants in nine categories, was adjudged as the winner of ‘Country
Award - India’.
According to the company release, SIAL (Salon International de l’Alimentation), one of the
largest food tradeshow in the world created the SIAL d’Or, which recognizes innovative products
for success in trading in their local markets. Every two years, a jury of food journalists from 30
countries across the world choose from a range of products from 30 countries across nine
categories ranging from savoury grocery, sweet grocery, fresh (non-dairy) products, fresh dairy
products, frozen savoury foods, frozen sweet foods, non-alcoholic beverages, alcoholic beverages
(excluding wine) and wine.
K S Narayanan, Managing Director, McCain Foods India Pvt Ltd said, “The Aloo Tikki marks
McCain Foods’ foray into ethnic snack foods category in the country. Since its introduction, the
product has been well accepted not only by retail consumers but also in the food service segment.
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McCain Aloo Tikki is today being exported to many countries including South East Asia, the UK,
the US and Hong Kong.
SWOT ANALYSIS
McCain operates in the frozen food industry. It produces French fries and other food products,
including pizza, appetizers, oven meals, vegetables, desserts, and juice. McCain's strong market
position lends the company substantial bargaining power. However, fluctuations in raw material
prices could adversely impact the company's operating margins.
Strengths:
Leading manufacturer of french-fries and other frozen products McCain are one of largest
manufacturers of frozen French fries and other potato products in the world. The company was
ranked among top 50 most valuable brands in Canada 2013 by an industry source specializing in
brand valuation. It was also ranked among top 100 largest selling brands in the Irish grocery
industry by another industry source specializing in providing market insights in 2012. The
company also has the capacity to process more than one million pounds of potato products per
hour and makes one third of all the frozen French fries produced in the world. McCain also
manufactures other frozen food products such as appetizers, pizzas, vegetables, desserts,
beverages and ready meals. McCain has established itself as a dominant player in the frozen foods
industry; this status lends the company substantial bargaining power. Worldwide presence
McCain has a diversified geographic presence. The company sells its products to both retail
outlets and foodservice operators in more than 160 countries across the world. Its key markets
include India, China, Japan, Austria, France, Germany, South Africa, Brazil, Argentina, the UK,
and the US. Its products are also available in thousands of restaurants and supermarket freezers.
McCain also operates 50 production facilities across six continents. The company's global
presence enhances its access to growth pockets among various markets while reducing business
risk.
Focus on sustainability:
The company participates in several sustainability initiatives to reduce its environment footprint
as well as to ensure effective utilization of resources. McCain mainly focuses on reducing its
greenhouse gas (GHG) emissions, energy consumption, and recycling systems. Since 2005, the
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company has been recording its emissions resulting from energy use throughout its manufacturing
facilities. By 2009, the company reduced GHG emissions from 244 grams per kilogram of French
fries to 233grams per kilogram. The company also focuses on reducing energy consumption to
save money, as well as to reduce air emissions and its reliance on non-renewable forms of energy.
In order to reduce energy consumption, the company's Global Energy Work Group introduced
The Search for Joules program in 2008 to integrate McCain's energy initiatives into a systematic
approach. This program was implemented across all facilities to reduce energy consumption. The
company is also working towards reducing water intake across all of its operations, especially in
water-stressed locations where it operates such as Mehsahna, India; Delmas, South Africa; and
Ballarat, Australia. For this purpose, McCain's Water Work Group launched a comprehensive
global water reduction program called Search for Pools. This program was rolled out in all of its
facilities in late 2008 and is designed to identify gaps between a facility's genuine water use and
McCain best practice. Moreover, 81% of the company's water intake is returned to the receiving
stream following extensive treatment. Furthermore, in 2009, the company recycled 95% of the
estimated 800,260 tons of waste generated. McCain aims to create as less waste as possible in
long-term by developing initiatives that help in greater usage of its raw materials and to increase
the recycling potential of any resulting waste. Therefore, focus on sustainability initiatives helps
the company to reduce its operating cost as well as to increase its profitability.
Weaknesses:
Product recalls
McCain has recalled many products recently. In June 2011, McCain Foods Australia recalled
20,000 of pizzas from supermarket shelves across the country due to possible metal
contamination. Earlier in 2010, McCain Foods (GB) Ltd recalled all batches of sweet potato with
rosemary and garlic due to possible contamination with pieces of grit. In the same year, McCain
Foods USA announced a voluntary recall of the McCain All American Roaster frozen potato
product as it could be contaminated with salmonella. A year earlier, McCain Foods Australia/New
Zealand recalled McCain Foods Healthy Choice Apricot Chicken meals. The company announced
that the product batches identified with a best before date of August 24, 2010 may contain high
levels of bacteria and are not safe for consumption. Product recalls affect the customer confidence
and could erode the demand for McCain products.
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Opportunities:
Focus on ‘healthy food’ offering is in line with the growing preference for low-fat foods the
company consistently focuses on offering healthy food products which are low in calories, low in
salt, trans-fat free and low in saturated fat. The company maintains specific standards defining the
exact amount of salt, fat and other ingredients in all its health food range. McCain aims to
introduce about 50% of its products that meet these health standards. In response to consumer
demand for non-fried potato products, the company introduced its first range of fresh-frozen
convenience potato products in 2009. The company also focuses on reducing sodium and oil in its
products. Since 2007, the company's branded potato products have been trans-fat free, with
saturated fats reduced by 46%. Furthermore, in response to consumer demand to reduce sodium,
the company has reduced sodium across its entire product range by 20% in Great Britain since
2001. McCain aims to reduce the salt level in its branded products by 10% per year until these
products meet consumer preference thresholds.
To help guide its research and innovation efforts, the company has built strong relationships with
the nutrition and medical health communities and their health and wellness advisory groups. The
company also partners with external organizations to promote healthier eating and physical
activity in schools, such as the Alliance for a Healthier Generation in the US.
McCain's healthy foods are likely to get wide acceptance as consumers are becoming increasingly
health-conscious and the demand for low-calorie food is growing. Therefore, the company's focus
on offering healthy foods enables it to tap the growing consumer preference for healthy foods
which, in turn, will increase its sales. Growing global frozen food market
The global frozen food market has been witnessing steady growth in recent times. The frozen
food market consists of the retail sale of frozen fish, seafood, meat products, potato products,
vegetables, fruit, pizza, ready meals, bakery products and desserts. According to Market Line, the
global frozen food market grew by 3.2% in 2011 to reach a value of $117.5 billion. In 2011,
frozen ready meals were the largest segment of the global frozen food market, accounting for
24.2% of the market's total value. By 2016, the global frozen food market is expected to reach a
value of $137.4 billion, an increase of 16.9% since 2011. McCain offers frozen French fries and
other potato products, as well as pizza, appetizers, ready meals, vegetables and juice. By
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leveraging its product offerings and brand portfolio, McCain can benefit from the growth trend in
the frozen food market. Strategic acquisitions
McCain has been expanding its operations significantly through strategic acquisitions. In
February 2013, McCain Foods Australia/New Zealand acquired Kitchens of Sara Lee (KOSL)
Australia (an Australian and New Zealand frozen food company that manufactures, sells and
distributes a range of Sara Lee branded products in frozen desserts, super premium ice cream,
pastries, frozen savory meals and frozen fruit categories) from Hillshire Brands. This acquisition
will expand McCain’s range of products across desserts, meals and snack occasions. In October
2012, McCain and Pinguin Lutosa Food Group (Pinguin), a manufacturer of deep-frozen
vegetables, potatoes and canned goods, signed a share purchase agreement for the sale of
Pinguin’s Lutosa division to McCain. This acquisition will strengthen the company’s core potato
business in Europe. It will also expand the company’s product offering and cater to a wider range
of customers. In July 2012, McCain Foods Holland announced plans to acquire 100% of the
shares of CelaVita, a European chilled potato producer and a subsidiary of Bieze Food Group.
This acquisition will further broaden McCain’s product portfolio to supply to large retail
customers. Earlier in 2010, TDRTG acquired Ottaway Motor Express Limited and Cross Dock
Express, two privately owned trucking companies based in Woodstock, Ontario. This acquisition
strengthened and expanded the company’s transportation and distribution services. Acquisitions
such as these will help McCain to generate incremental revenues as well as contribute for future
growth.
Threats:
Fluctuations in raw material prices McCain is vulnerable to price fluctuations of raw materials
such as flour and vegetable oils (some of the basic ingredients for the frozen foods industry). For
instance, the sunflower oil price was $1,553.41 per metric ton in January 2012. This decreased to
$1,441 per metric ton in February 2012 and largely remained close to that price until June 2012. It
further increased to $1,505.54 per metric ton in July 2012 and then declined to $1,483.03 per
metric ton in November 2012. The price of sunflower oil stood at $1,462.01 per metric ton in
March 2013. If McCain is unable to pass on the increase in raw material prices to its customers, it
will have an adverse impact on its operating margins. Regulatory compliance may increase costs
as a manufacturer and marketer of food products, McCain is subject to the US Federal Food, Drug
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and Cosmetic Act and regulations promulgated by the US Food and Drug Administration (FDA).
This comprehensive regulatory framework governs the marketing and distribution (including
composition and ingredients), labeling, packaging and safety of food in the US. In addition, the
FDA enforces the Public Health Service Act and regulations to prevent the introduction,
transmission or spread of communicable diseases. According to Centers for Disease Control and
Prevention, nearly 48 million Americans fall sick, 128,000 are hospitalized, and 3,000 die from
foodborne diseases each year due to consumption of contaminated produce. The company's
failure or inability to comply with the regulatory requirements could subject the company to civil
remedies, including fines, injunctions, recalls or seizures, as well as potential criminal sanctions,
which may impact the business of the company. Any changes in these regulations may increase
the company's compliance cost structure. McCain may have to make additional investments to be
in compliance with the operational changes required by the regulations, which may affect the
company's cost structure.
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Customer’s Buying Behavior
The concept of consumer behavior has also defined by various researchers as per the needs of the
environment. Human psyche is a very complex process because it involves not only the
economic factors but also the emotional and social factors (Clark and Goldsmith, 2006). Thus, it
is really very difficult to provide an adequate definition of consumer behavior. It has been
observed by the various researchers that the success or failure of the product or service is directly
related to the human psyche and their preference (Kauffman, 1996). Hence, an understanding of
the human psychology helps marketers to come up with the innovative product mixes (Peter and
Donnelly, 2002). Consumers are the base of the business process of the business organisations.
All the consumers are not similar with each other according to their buying behaviour. (Zhang
and Neelankavil, 1997)
According to the figure 8, there are many determinants that affect the buying behaviour of
consumers. According to Sheth and Parvatiyar (1995), evaluation of various factors related to the
consumer behaviour allows the business firms to strengthen the relationship between business
and consumers.
Zhang, Y., and Neelankavil, J.P. (1997), the Influence of Culture on Advertising Effectiveness in
China and the USA: A Cross-Cultural Study. European Journal of Marketing Vol. 31 No. 1
pp134-149.
Consumer Buying Behavior: Services Loyalty and Brand Equity
Consumer buying behaviour is also linked with the service quality and brand loyalty. It explains
different aspect that affects buying behaviour of consumer. These determinants are customer
loyalty, service loyalty and brand equity. All these are interrelated with each other.
All these features can be achieved through CRM process. In the present environment, successful
companies give attention to retention of their existing customers rather than attracting new
customers (Sarlak and Fard, 2009).
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2. The CRM Process as a Tool to Retain Customers
According to Landrigan (2005) implementation of CRM process as an important marketing tool
that can result to market expansion and attract consumers to buy the product of the company.
CRM is the implementation process for relationship marketing. Main aim of the CRM process is
to retain customers for long term along with the attraction of new customers (Biyalogorsky et al,
2001). This process of CRM provides an excellence opportunity to the retailers to expand their
customer’s database.
3. Link between Customer Relationship Management and Customer buying Behavior
Customer relationship process is a process of developing long-term relationship with customers
by knowing more about customers need and about their behavior pattern (Reynolds, 2002). It has
a direct relationship with the buying behavior of consumers.
Bose (2002) Explained in its research, about the link between CRM and customer buying
behavior that a company that collects lots of data regarding the buying patterns of customers can
make an effective CRM strategy easily in comparison of those companies that have less data
about consumer’s buying pattern. He also stated in its research that financial companies and
telecommunication companies can make effective CRM strategies as they have lots of data
regarding their customers buying patterns. In the same manner, retail companies should also
collect sufficient data and information about customers to retain them for long term.
The customer buying behavior is a process through which customers make decision regarding
with selection, purchase and use of goods and services (Dibb and Simkin, 2001). So, by
analyzing this process of customer buying behavior CRM manager can plan, organize and
control the customers of their product. Thus, both CRM and customer buying behavior are linked
with each other and also affect the operation of each other (McMahon, 2008).
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CONSUMER BEHAVIOUR TOWARDS READY-TO-EAT FOOD PRODUCTS
Thesis submitted to the University of Agricultural Sciences, Dharwad
By
RENUKA HIREKENCHANAGOUDAR
In this chapter, research work done in the past regarding awareness, purchase behaviour, brand
preference, factors influencing brand preference and alternative purchase plans has been reviewed
and presented under the following sub-headings.
• Awareness of consumers towards branded products
• Purchase behaviour of consumers
• Brand preference
• Factors influencing brand preference
• Alternative purchase plans
AWARENESS OF CONSUMERS TOWARDS BRANDED PRODUCTS
Aaker (2000) opined that, brand awareness was remarkably durable and sustainable asset. It
provides a sense of familiarity especially in low- involvement products such as soaps, a sense of
presence or commitment and substance and it was very important to recall at the time of
purchasing process. Apart from the conventional mass media, there were other effective means to
create awareness viz., event promotions, publicity, sampling and other attention getting
approaches.
Brown et al. (2000) reported that the need for effective nutritional education for young consumers
has become increasingly apparent, given their general food habits and behaviour, particularly
during adolescence and analyzed that the interaction between young consumers’ food preferences
and their nutritional awareness behavour, within three environments (home, school and social
interaction appears to be somewhat overshadowed by the young consumers, while developing an
independence trait, particularly, during the adolescent years. The authors suggested that food
preferences are often of a ‘fast food’ type and consequently the food habits of many young
consumers may fuel the consumption of poorly nutritionally balanced meals. While young
consumers were aware of healthy eating, their food preference behaviour did not always appear to
reflect such knowledge, particularly within the school and social environments.
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Beverland (2001) studied the level of brand awareness within the New Zealand market for
ZESPRI kiwi fruit. The effectiveness of this branding strategy employed by kiwi fruit, New
Zealand was studied. The implications of the findings for agribusiness in general using the data
collected from surveys of kiwi fruit consumers (n=106) outside three major super market chains
in Auckland, New Zealand, suggested that the level of brand awareness for ZESPRI is low among
consumers. It is indicated that brand awareness could be increased through a relationship- making
programme involving targeted marketing and supply chain management.
PURCHASE BEHAVIOUR OF CONSUMERS
Balaji (1985) studied fish consumption behaviour of 526 consumers in Vishakapatnam city. The
study revealed that 77.00 per cent of respondents consumed fish for dinner and 22.00 per cent for
lunch. About 30.00 per cent of the respondents did not consume fish on festival days, as those
days were considered auspicious, while the rest had no notations and consumed fish, irrespective
of festivals.
Jorin (1987) examined changes in spending power and buying habits of Swiss consumers since
the beginning of the 20th century and in the more recent past. Current trends include greater
emphasis on health and safety of foodstuffs and less attention to price, increased demand for low
calorie light products and increased demand for organically grown foods. For young people, more
concern with enjoyment and less for health, with more meals eaten from home and generally an
increased demand for convenience foods. The prospects for high quality branded products were
seen to be good.
Puri and Sanghera (1989) conducted a study to know the consumption pattern of processed
products in Chandigarh. Jam was found to be most popular, irrespective of income. Orange
squash consumption was maximum in high and middle – income families. Pineapple juice
consumption increased with a rise in the income.
BRAND PREFERENCE:
Gluckman (1986) studied the factors influencing consumption and preference for wine. The
explicit factors identified were, the familiarity with brand name, the price of wine, quality or the
mouth feel of the liquid, taste with regard to its sweetness or dryness and the suitability for all
tastes. Some of the implicit factors identified through extensive questioning were colour and
19
appearance. Most of the consumers seemed to prefer white wine to red. Consumers preferred
French or German made wines to Spanish or Yugoslavian wines.
Kumar et al. (1987) observed the factors influencing the buying decision making of 200
respondents for various food products. Country of origin and brand of the products was cross-
tabulated against age, gender and income. Results revealed that the considered factors were
independent of age, education and income. The brand image seemed to be more important than
the origin of the product, since the consumers were attracted by the brands.
Shanmugsundaram (1990) studied about soft drink preference in Vellore town of North Arcot
district in Tamil Nadu. The study revealed that, the most preferred soft drink among respondents
as Gold spot (26.00%), followed by Limca (24.80%). It was found that the taste was the main
factor for preference of particular brand and among the media; television played a vital role in
influencing consumer to go for a particular brand. Because of convenience in carrying, tetra pack
was most preferred one.
Ali (1992) studied the brand loyalty and switching pattern of processed fruit and vegetable
products in Bangalore city by using Markov Chain analysis. The result of study revealed that
Kissan brand of jam and Maggi brand of ketchup had a maximum brand loyalty among
consumers and less amount of brand switching occurred for these brands.
Sabeson (1992), in his study stated that high quality, price and taste of the product were the major
criteria based on which the customers selected a brand of processed fruits and vegetable products.
Hans et al. (1996) revealed that, the brand switching of consumer was based on variety seeking
behaviour, motivations, curiosity and price motive.
FACTORS INFLUENCING BRAND PREFERENCE
Singh and Singh (1981) found that consumers had single or multi-brand loyalty based on the
nature of product, like necessities or luxuries. Brand choice and store loyalty were found to affect
the brand loyalty of the consumer. The factors that influence and strengthen loyalty to brand were
quality of product, habit of use and ready and regular availability.
20
Sabeson (1992) in his study stated that, high quality, price and taste of the products were the
major criteria based on which the consumers selected a brand of processed fruits and vegetable
products.
Ashalatha (1998) studied the factors influencing the performance of BAMUL milk for a sample
of 100 respondents. The study revealed that the factors such as door delivery, clean packing,
quality, hygienic preparation, time saving and reliability, good value for money, freshness and
desired flavour were important in the order in influencing the decision of buyers for BAMUL
milk.
The study undertaken by Sheeja (1998) in Coimbatore district considered the quality aspects like
aroma, taste, freshness and purity as the major factors deciding the preference for a particular
brand of processed spices.
Raj Reddy and Pruthviraju (1999) studied about buying motives of rural consumers about seeds
and different sources of information about brands with regard to seeds. It was found that factors
influencing brand loyalty of farmers were dealer’s suggestions, quality product and co-farmers.
The problems faced by farmers were supply of seed or poor quality seed, higher price, dulteration
and irregular supply of seeds.
Gaur and Waheed (2002) conducted a study on buying behaviour for branded fine rice in Chennai
and Coimbatore city. The study indicated that retailers were ranked as the prime source of
information and the family members as the next important source of information about the
branded fine rice. Rice mandy formed the major source of purchase for Chennai (73.00%) and
Coimbatore (70.00%) households. Quality and image of the brand were ranked as first and second
factors influencing brand preference in both Chennai and Coimbatore cities.
Sanjaya et al. (2002) reported that, the decision for purchasing branded fine rice was mostly made
by the wives of the family. The retailers were ranked as the prime sources of information about
branded fine rice. The monthly purchase was the most preferred frequency of purchase, which
might be due to the fact that most of the respondents were of monthly salaried class and they
would have planned their purchase accordingly along with other provision items. The quality and
the image of the brand were ranked as the major factors for brand preference in the purchase of
branded fine rice.
21
ALTERNATIVE PURCHASE PLANS:
Rajarashmi and Sudarsana (2004) revealed that, almost all sample respondents preferred branded
products and if their favorite brand is not available in the retail shop, they will go for another store
and purchase their favorite brand. If it is not available in the market, the respondents were ready
to postpone their purchase decision. Anandan et al. (2007) studied that, majority of the
respondents (54.00%) will buy another brand if preferred brand is not available, 18.00 per cent of
the respondents will go to the nearby town for buying the preferred brand. Fifteen per cent of the
respondents will postpone their purchase decision. It was revealed from the study that customers
cannot postpone the decision of buying the detergents, as it was one of the essential commodities.
About FMCG:
Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are
sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks,
toiletries, and grocery items. Though the absolute profit made on FMCG products is relatively
small, they are generally sold in large quantities, and so the cumulative profit on such products
can be substantial.
Fast-moving consumer electronics are a type of FMCG and are typically low priced generic or
easily substitutable consumer electronics, including lower end mobile phones, MP3 players, game
players, and digital cameras, which have a short usage life, typically a year or less, and as such are
disposable. Cheap FMCG electronics are often retained even after immediate failure, as the
purchaser rationalizes the decision to not return the goods on the basis that the goods were cheap
to begin with, and that the cost of return relative to the low cost of purchase is high. Thus low-
quality electronic FMCG goods can be highly profitable for the vendors.
Scope:
The term FMCGs refers to those retail goods that are generally replaced or fully used up over a
short period of days, weeks, or months, and within one year. This contrasts with durable goods or
major appliances such as kitchen appliances, which are generally replaced over a period of several
years.
FMCG have a short shelf life, either as a result of high consumer demand or because the product
deteriorates rapidly. Some FMCGs—such as meat, fruits and vegetables, dairy products, and
22
baked goods—are highly perishable. Other goods such as alcohol, toiletries, pre-packaged foods,
soft drinks, and cleaning products have high turnover rates. An excellent example is a newspaper
—every day's newspaper carries different content, making one useless just one day later,
necessitating a new purchase every day.
The following are the main characteristics of FMCGs:
From the consumers' perspective:
• Frequent purchase
• Low involvement (little or no effort to choose the item – products with strong brand
loyalty are exceptions to this rule)
• Low price
• From the marketers' angle:
• High volumes
• Low contribution margins
• Extensive distribution networks
• High stock turnover
FMCG Category:
FMCG Product Categories
There are mainly 4 product categories in FMCG:
• Home and Personal Care (Home Care and Personal Care)
• Foods and Beverages
• Cigarettes
• Alcohol
These categories can be divided in sub categories.
1a. Household Care: It can be divided into the following categories
Fabric wash - Laundry soaps and Synthetic detergents
Household cleaners - Dish/utensil cleaners, floor cleaners, Toilet cleaners, Air fresheners,
Insecticides and Mosquito repellants, Metal polish and Furniture polish
23
1b. Personal Care: It can be divided into the following categories
• Oral Care - Toothpaste
• Skin Care - Creams, Lotions, Gellies
• Hair Care - Hair Oil, Shampoos
• Personal Wash - Soaps
• Cosmetic & Toiletries
• Talcums
• Deodorants
• Perfumes
• Paper Products - (tissues, diapers, sanitary)
• Shoe care
2a. Foods
Confectionary
• Staples/ Cereals
• Bakery products - Biscuits, bread, cakes
• Snack food
• Chocolates
• Ice cream
• Processed fruits
• Vegetables
• Meat
• Dairy products
• Branded flour, rice, sugar
2b. Beverages
• Tea
• Coffee
• Juices
• Bottled water
• Health beverages
• Soft drinks
24
FMCG Terminology:
Primary Sales: These are sales from the company to the distributor
Secondary Sales: These are sales from the distributor to the retailer. Usually, targets are always
based on secondary sales
Off takes: These are sales from the retailer to the customer. While off takes are not tracked by the
company, trends of off takes are tracked by Nielsen, which is a market research agency. Nielsen
provides cumulative data of off takes to brand managers in terms of market share. The accuracy
of this is debatable as Nielsen takes only a subset of the number of traditional trade stores (which
is then extrapolated) and does not track some modern trade chains – however due to lack of
options, companies use this share data to figure out if their brand is doing well or not. For high
value goods such as make up and durables, companies track their own counter wise off takes.
Trade Schemes: These are schemes that are given out in the market to boost sales from time to
time. Trade Schemes are designed for the trade i.e. Retailers/Whole-Salers and the distributor is
supposed to comply with them and extend it to the trade and the company’s sales force are
expected to utilize it in the right spirit and ensure market hygiene.
These can be in terms of discounts on the bill (hence translating to higher margins) or in terms of
goods that may be enticing for the retailer/distributor. An example of this would be a free air
conditioner on purchase of a particular value of goods, or a free holiday package on achieving the
target that is given.
Trade schemes are of two types:
Quantity Purchase Schemes (QPS): These typically look like this:
144 pieces – 8% discount
72 pieces – 6% discount
48 pieces – 4% discount
24 pieces – 2% discount
Basically these are discounts offered on purchasing a particular quantity of products
25
Value Purchase Schemes (VPS): These would look like this:
Purchase of 10,000 – 8% discount
Purchase of 8,000 – 6% discount
Purchase of 6,000– 4% discount
Purchase of 4,000 – 2% discount
These are discounts offered on purchasing products of a predefined value.
Trade schemes are further divided into two types depending on who they are offered to:
Primary Schemes: These are those that are deducted while the invoicing is done to the
distributor from the company’s end. This may be done to give the distributor an additional
margin.
Secondary Schemes: These are those which the distributor is supposed to first extend to the
market and then claims it back from the company.
Beat: This is the route that a salesman follows on a particular day. For example, his beat on
Monday will be Area X, and his beat on Tuesday will be area Y. This is usually optimized to
ensure optimum coverage of all the stores in a sales territory such that the salesman visits each
store once in a fixed interval. To elaborate, a company’s norm might be that a store has to be
visited once a week. In that case, the beat is decided such that the entire sales territory is covered
in a week.
Food Preservation:
Since his being on earth million years ago, man practiced food preservation to fulfill his needs
during the times of scarcity and droughts .The process of grain storage in mentioned in the Holy
Quran in Surat Yusuf “((Joseph) said: For seven years shall ye diligently sow as is your wont: and
the harvests that ye reap, ye shall leave them in the ear,- except a little, of which ye shall eat.(47)
Then will come after that (period) seven dreadful (years), which will devour what ye shall have
laid by in advance for them,- (all) except a little which ye shall have (specially) (48). Drying and
burying were among the most important methods of food preservation.
Sciences related to food preservation were developed with the continuous need for long-time
storage of food. Food preservation is defined as the process of addressing and dealing with food
in a way that maintains its taste and preserves its nutritive value as long as possible via stopping
or slowing spoilage with the aim of preventing foodborne Illnesses. The process of food
26
preservation include inhibiting the growth of bacteria, fungi and other microorganisms besides
slowing down the process of oxidation of fats, which causes food Rancidity.
The most common food preservation methods include drying , freezing , vacuum-packing,
canning , Preserving in syrup, sugar crystallization, salting, irradiation, the addition of
preservatives and inert gases .
Freezing:
Freezing is the most common method of preservation. Besides minimizing the spoilage of the
food, the crystals resulting from freezing of the water content of the food prohibits the growth of
more than 99% of the spoilage bacteria and retards most of the enzymatic reactions that take place
in food.
The shelf life of the frozen food can be more than 12 month if frozen and stored in -18 °C (0
Fahrenheit).
Thawing:
Upon removal of frozen food items from the freezer bacteria start multiplying within the
dangerous zone (40 – 140 °F (therefore the defrosting process should be looked at as a race
between the consumer and the bacteria with the aim of completing the defrosting process in way
that maintains the taste and nutritive value of the food before the bacteria exceeds the permitted
concentrations. Bacteria win this race if food is kept more than 2 hours within the dangerous
zone.
Thawing Methods:
The most common thawing methods of frozen food include:
• Refrigerator Method
• Cold Water Method.
• Method Microwave.
• Cook it frozen method.
• Metal pan method
• Room temperature method
• Warm water method
27
Objectives
o To know the buying behavior of customer while purchasing frozen food product.
o To know what factor influences the consumer behavior on McCain frozen food
product
o To know customer preference of buying McCain as frozen food product
28
RESEARCH METHODOLOGY
Research is the systematic investigation to establish facts or collect information on a pre-decided
subject. Research is a process of collecting, analyzing and interpreting information to answer
questions.
Research comprises defining and redefining problems, formulating hypothesis or suggested
solutions; collecting, organizing and evaluating data; making deduction and reaching
conclusions; and at last carefully testing the conclusions to determine whether they fit the
formulating hypothesis – Clifford Wood.
RESEARCH PROCESS
It consists of a series of action necessary to carry out research and the desired sequence of these
steps-
o Defining the problem and research objectives
o Develop the research plan
o Collect the information
o Analyze the information
o Present the findings
o Make the decision
RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
Descriptive research is used in the preparation of the project. Some point and facts were not
found earlier hence exploratory research is used. A descriptive research technique is also used as
researcher again worked upon those facts that were earlier found by some other.
29
METHODS OF RESEARCH
Exploratory Study: Exploratory study is done by conducting: Secondary data analysis which
included studying the website of the company and also going through the various articles
published in different sources books, internet. Also going through their sales promotion activity
and study the drawbacks.
Descriptive Study: After carrying out initial exploratory studies, in order to bring clarity on the
subject under study. Descriptive study carries out to know the caterers preferences and buying
behaviour of McCain frozen food products.
Explanatory Study: This is casual research. This kind of research explains the causes of social
and economical phenomena/events. Describing or exploring the nature of the phenomena and
explaining the causes for the same are the explanatory aspect of this kind of research.
The method of Research used in this project is the DESCRIPTIVE method of Research.
Collection of Data
1. PRIMARY DATA :-
a) Mass Interview:- A mass interview was conducted with the various caterers in Pune region
and his aim was to collect a viewpoint of the crowd about the frozen food products.
b) Then we had our questionnaire made based on which we prepared our analysis we asked
around 1 and a half dozen of questions approximately to gather some useful data in accordance
with our project
2. SECONDARY DATA:- I had an interpretation and collection from the previously done
research papers and the literatures written about the company of our concern, we also had some
data. The major sources of secondary data are mentioned below.
Reports/records
Website
30
Organization’s old data.
SAMPLE DESIGN
A sample design is the theoretical bases and the practical means by which we infer the
characteristics of some population by generalizing from the characteristic of relatively few of the
units comprising the population.
Research Instrument : questionnaire
Sampling Universe :All caterers as customers in Pune
Sample Area: Different areas of Pune region.
Sampling Method: Non probability sampling (Convenience sampling) is used because
of Restriction of time.
Sample Size: 110
Sample Unit: various caterers
Sample Frame: Different caterers of Pune region (like Wakad, Aundh, Baner, Swargate,
Vimannagar, Sadashiv Peth, Kalyaninagar, etc.)
31
Q1. Do you buy frozen food products?
Table no. 6.1: Purchase behaviour of frozen food productsSerial No. Particular No. of Respondents %
01 Yes 104 9502 No 6 5
Total 110 100
104; 95%
6; 5%
Fig.6.1: Purchase behaviour of frozen food products
YES
NO
INTERPRETATION
According to above figure most of the respondents (95%) purchase frozen food product and only few respondents (5%) do not purchase.
32
Q2. Which frozen food product brand do you prefer?
Table no. 6.2: Preference of brand Serial No. Particular No. of Respondents %
01 McCain 43 4102 Sumeru 19 1803 Al Kabeer 7 704 Go Veg 15 1505 Any Other 20 19
Total 104 100
McCain Sumeru Al Kabeer Go Veg Any Other0
5
10
15
20
25
30
35
40
45
50
41%
18%
7%
15%
19%
Fig 6.2: Preference of brand
Interpretation
According to above figure it was observed that out of 104 respondent’s 41% respondents prefer McCain brand as a frozen food product 18% prefer sumeru, 7% prefer alkabeer, 15% prefer go veg and 19% prefer any other brand of frozen food product.
33
Q3. Which McCain product do you buy?
Table no 6.3: Buying behaviour
Serial No. Particular No. of Respondents %01 French Fries 56 5402 Rosti Round 17 1603 Savory Wedges 10 1004 Idli 21 20
Total 104 100
french fries ROSTI ROUND SAVORY WEDGES IDLI0
10
20
30
40
50
60 54%
16%
10%
20%
Fig 6.3: Buying behaviour
Interpretation
According to above figure it was observed that out of 104 respondents 54% of respondents buy French fries 16% of respondents buy rosti round 10% of respondents buy savory wedges and 20% of respondents buy idli as a McCain frozen food product.
34
Q4. Which categories of frozen food product do you buy?
Table no. 6.4: Buying preferenceSerial No. Particular No. of Respondents %
01 Vegetarian 65 6302 Non – Veg 16 1503 Both 23 22
Total 104 100
63%15%
22%
VEGETERIANNON-VEGBOTH
Fig 6.4: Buying preference
Interpretation
According to above figure It was observed that out of 104 respondents 63% of customer purchase vegeterian frozen food product 15% purchase non-veg category and 22% purchase both veg and non-veg categories.
35
Q5. How do you prefer your frozen food product after cooking?
Table no.6.5: Preference of consumerSerial No. Particular No. of Respondents %
01 Hot 75 7202 Moderate 29 28
Total 104 100
72%
28%
Fig 6.5: Preference of consumer
Hot
Moderate
Interpretation
According to above figure it was observed that out of 104 respondents 72% respondents prefer hot food and 28% respondents prefer moderate food after cooking frozen food.
36
Q6. How do you find the taste of McCain frozen food product?
Table no. 6.6: Taste of consumerSerial No. Particular No. of Respondents %
01 Good 19 1802 Best 26 2503 Better 35 3404 Satisfactory 24 23
Total 104 100
GOOD BEST BETTER SATISFACTORY0
5
10
15
20
25
30
35
40
18%
25%
34%
23%
Weighted Average =
(1*19+2*24+3*26+4*35) / 104= 2.61
Interpretation According to above figure It was observed that out of 104 respondents , 19% of respondents observe that taste was good, 26% of respondents taste was of best quality, 35% of respondents observe taste was of better quality and 24% of respondents was of satisfactory quality.
37
Q7. From where do you purchase your frozen food product?
Table no. 6.7: Purchasing of productSerial No. Particular No. of Respondents %
01 Retailer 22 2102 Wholesaler 18 1703 Distributor 47 4504 Other 17 17
Total 104 100
21%
17%
45%
16%
Retailer
whole saler
Distributor
Other
Fig 6.7: Purchasing of product
Interpretation
According to above figure it was observed that out of 104 respondents 21% of respondents purchase frozen food from retailers, 17% from wholesalers, 45% from distributors and 17% from others.
38
Q8. Which brand gives you more margins?
Table no. 6.8: Brand preferenceSerial No. Particular No. of Respondents %
01 McCain 42 3802 Godrej 28 2703 Sumeru 12 1204 Al Kabeer 11 1205 Himalayan 11 11
Total 104 100
McCain Godrej yummiez Sumeru Al Kabeer Himalayan Veg0
5
10
15
20
25
30
35
40
45 40%
27%
11% 11% 11%
Fig.no 6.8: Brand preference
Interpretation
According to above figure It was observed that out of 104 sample size 40% respondents observe McCain gives the highest margin among all the companies of frozen food, 27% observe Godrej yummiez give, 11% observe Sumeru and alkabeer gives and 11% says Himalayan veg gives.
39
Q9. What is the availability of product?
Table no.6.9: Availability of productSerial No. Particular No. of Respondents %
01 Regular 41 3902 Irregular 38 3703 Not Available 25 24
Total 104 100
39%
37%
24%
RegularIrregularNot available at all
Fig 6.9: Availability of product
Interpretation
According to above figure It was observed that out of 104 sample size 39% respondents says the availability of product is on regular basis,37% respondents says sometimes it is irregular and 24% respondents says not available at all.
40
Q10. How do you come to know about the product?
Table no.6.10: Awareness of productSerial No. Particular No. of Respondents %
01 Television 59 5702 Newspaper 17 1603 Magazine 6 0604 Family & Friends 3 0305 Display 9 0906 Any Other 10 09
Total 104 100
TV
Newsp
aper
Magazi
ne
Family
& fr
iends
Display
at re
tail o
utlets
Any other
0
10
20
30
40
50
60
7057%
16%
6% 3% 9% 9%
Fig 6.10: Awareness of product
Interpretation
According to above figure It was observed that out of 110 sample size 55% respondents says the awareness of McCain frozen product is due to television advertisement, 17% respondents says due to newspaper, 6% says due to magazine, 3%says due to family and friends 10%says due to various displays at retail outlets and 9% says it is from another sources.
41
Q11. How do you find the advertisement of the company for promotion of product?
Table no .6.11: Behaviour towards the advertisementSerial No. Particular No. of Respondents %
01 Good 18 1702 Better 40 3803 Best 39 3804 Satisfactory 7 7
Total 104 100
Good Better Best Satisfactory0
5
10
15
20
25
30
35
40
45
17%
38% 38%
7%
Weighted Average =
(1*7+2*18+3*39+4*40) /104 = 3.077
Interpretation According to above figure It was observed that out of 104 respondents, 17%of respondents observe that advertisement was good for promotion of product, 38% of respondents observe that advertisement was better for promotion of product, 38% of respondents observe that
42
advertisement was best for promotion and 7% of respondents observe that advertisement was satisfactory for promotion.
Q12. Are you influenced by advertisement?
Table no.6.12: Awareness of product
Serial No. Particular No. of Respondents %01 Yes 70 6702 No 34 33
Total 104 100
67%
33%
Fig.12.Awareness of product
Yes No
Interpretation
According to above figure it was observed that out of 104 sample size 67% respondents says they are influenced by the advertisement and 33% respondents they are not convinced by advertisement.
43
Q13. What is the general quantity that you take in a frozen food product?
Table no.6.13: Purchase quantitySerial No. Particular No. of Respondents %
01 2.5 kg 18 1702 1 kg 10 1003 1.5 kg 62 6004 Any Other 14 13
Total 104 100
17%
10%
60%
13%2.5 kg 1 kg1.5 kgany other
Fig.6.13: Purchase quantity
Interpretation
According to above figure it was observed that out of 104 respondents 17% of take 2.5 kg case pack, 10% take 1 kg case pack, 60% take 1.5 kg case pack and 13 % take any other packet.
44
Q14. What improvement do you want?
Table no. 6.14: Changes for productSerial No. Particular No. of Respondents %
01 Less Price 17 1702 Packing 19 1803 Taste 51 4904 None 17 16
Total 104 100
16%
18%
49%
16%
Fig 6.14:Changes for product
Less PricePackagingChange in taste None
Interpretation
According to above figure It was observed that out of 104 sample size 49% respondents observe that there should be some change in taste of McCain frozen food,18% respondents observe that the packaging should be change, 17% respondents observe that there should be reduction in price, and 16% respondents observe that there should be no change.
45
Q15. Are you satisfied with McCain food product?
Table no. 6.15: Customer satisfaction
Serial No. Particular No. of Respondents %01 Yes 74 7102 No 30 29
Total 104 100
71%
29%
Fig.6.15: Customer satisfaction
YesNo
Interpretation
According to above figure it was observed that out of 104 sample size 71% respondents observe that they are satisfied with McCain frozen food product, 29% respondents observe that they are not satisfied.
46
Q16. Which Brand do you think is the Competitor of the McCain food products?
Table no.6.16: Competitors of productSerial No. Particular No. of Respondents %
01 Alkabeer 27 2602 Godrej 16 1503 Sumeru 49 4704 Himalayan Veg 12 12
Total 104 100
Al Kabeer Godrej Sumeru Himalaya0
10
20
30
40
50
60
26%
15%
47%
12%
Fig.6.16: Competitors of Product
Interpretation According to above figure It was observed that out of 104 sample size 47% respondents observe Sumeru is the biggest competitor of McCain, 26% respondents observe it was Alkabeer, 15% respondents observe it was Godrej and 12% respondents observe it was Himalayan veg.
47
FINDINGS
A survey of 110 customers as caterers was conducted to find customer preference and buying
behaviour of frozen food product.
For caterers
Nearly 95% of customer buys frozen food products.
Nearly 41% of customer prefer McCain as a frozen food product followed by
18% who prefer other brand of frozen food product.
It was observed that customer purchased nearly 54% of French fries of all
McCain frozen products as compared to other product such as idli at 20%.
It was observed that nearly 63% of customer prefer vegetarian category of
frozen food product followed by 22% who prefer both the category
vegetarian and non-vegetarian.
It was observed that 72% of customer prefer hot frozen food and followed
by 28% who prefer frozen food at moderate temperature.
It was observed that on a scale of 4 from lower to higher with the help of
weighted average the value comes 2.61, so the taste of McCain frozen food is of
best quality.
It was observed that 45% of caterers as customer purchased frozen food from
distributors followed by 21% who purchased from retailers.
It was observed that 40% of customer prefers McCain, due to good price margin
than any other frozen food brand.
39% of customer observed that regularity of product is on regular basis.
It was observed that 57% of customer is aware of frozen food product due to
advertisement on television.
It was observed that on a standard scale of four from lower to higher with
the help of weighted average the value comes 3.07, so the advertisement of
company is best for the production of product.
48
It was observed that 67% of customer were influenced by advertisement of
the company.
It was observed that 60% of customer prefer taking 1.5 kg packets among
all other package of McCain frozen food product.
It was observed that 49 % of customer wants improvement in some products of
McCain frozen foods.
It was observed that 71% of customers were satisfied with McCain food product.
Among all the good brands of frozen food product 47% of customer observe that
Sumeru is the biggest competitor of McCain food product
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Conclusion
The buying behaviour of customers while purchasing frozen product shows that 72% of customers purchased 1.5 kg case pack, and 45% of customers purchase the frozen food from distributors it tells about where and when they purchased frozen food product.
As 57% of customer observed that advertisement helps in the promotion of product through television and 49% of customer wants some change in taste ,so all these factors affect consumer behaviour on frozen food product.
The customer preference of buying frozen food product shows that 63% of customers purchased vegetarian category and 41% of customer prefer McCain brand and 72% of customer prefer extremely hot food after cooking.
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Limitation of the Project
• Due to the way the caterers operate in India much of information was only collected on approximations.
• Many caterers didn’t volunteer for the survey.
• Interest of the respondents was generally low during the interaction about the survey.
• The survey was restricted to only Pune region caterers.
• The survey was too lengthy and so took a lot of time of the caterers and some of them left answering in the middle.
• The survey was conducted in 45days due to time restriction.
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RECOMMENDATION
McCain has all their products in vegetarian segment there are few customer who prefer Non-vegetarian segment, so the company should enter non-vegetarian segment in nuggets and jalapeno product.
Company should take proper follow up of caterers so that regularity of product should be maintained.
Company should focus on taste of some products because customer is mainly influenced by taste. For example Mozzarella cheese shot is the product which is not suitable for Indian plate so needs to change its taste.
Majority of the caterers as customers purchased food from distributors so there should be more awareness at retailers level.
Observation During informal discussion
As young generations are potential customer due to disposal income so company should focus on them.
McCain has to maintain the top position for that they have to increase their performance in Pune through various brand awareness strategies.
McCain should supply the product regularly in time to various caterers so that loyalty and trust of caterers should be maintained.
.
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APPENDIX-I
BIBLIOGRAPHY
• Kotler, Philip, and Keller Kevin Lane. Marketing Management. Pearson Education, Inc., 2006
• Pride, William M., and Ferrell O. C. Marketing: Concepts and Strategies. 12th ed. Houghton Mifflin Co., USA, 2005
• Ramaswamy, V. S., and Namakumari S. Marketing Management: Planning, implementation and Control. 3rd ed. Macmillan India Ltd., 2002
• Kotler, Philip, and Armstrong Gary. Principles of Marketing. 11th ed. Pearson Prentice Hall, 2006.
• Tata McGraw hill ,Marketing Research 3rd edition by Dr. Rajendra Nargundkar.
Websites:
WWW. McCain India. Com– For company profile.
www.inc.co.in - Used for Industry overview and theoretical background.
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JOURNALS BY :
Clark and Goldsmith (2006)
Kauffman (1996)
Peter and Donnelly (2002)
Zhang and Neelankavil (1997)
Sheth and Parvatiyar (1995)
Jobber and Fahy (2010
CONSUMER BEHAVIOUR TOWARDS READY-TO-EAT FOOD PRODUCTS
Thesis submitted to the University of Agricultural Sciences, Dharwad
By
RENUKA HIREKENCHANAGOUDAR
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APPENDIX-II
QUESTIONNAIRE
Demographic Details-
NAME(Optional)-________________________________________________
AGE- 15-20 21-30 31-45 46 & above
INCOME -
Less than 20,000
20001 - 35000
35001 - 50000
50001 – 100000
100000 & above
GENDER - M F
OCCUPATION- ________________________________________________
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Questionnaire
1. Do you buy any frozen food product?
a. ( ) Yes b. ( ) No
2. Which frozen food product brand do you prefer?
a. ( ) McCain b. ( ) Sumeru c. ( ) Al kabeer
d. ( ) Go veg e. ( ) Any other
3. Which McCain product do you buy?
a. ( ) French fries b. ( ) Rosti round c. ( ) Savory wedges. D. ( ) Idli
4. Which categories of frozen food product do you buy?
( ) a. vegetarian ( ) Non- vegetarian ( ) c. both
5. How do you prefer your frozen food product after cooking?
a. ( ) Hot b. ( ) Moderate
6. How do you find the taste?
a .( ) Good b. ( ) Best
c .( ) Better d. ( ) Satisfactory
7. From where do you purchase your frozen food product?
a. ( ) Retailer b. ( ) Wholesaler
c. ( ) Distributor d. ( ) Others
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8. Which brand gives you more margins?
A. McCain
B. Godrej yummiez
C. Sumeru
D. Al Kabeer
E. Himalayan Veg
9. What is the availability of product?
a. ( ) Regular b. ( ) Irregular
c. ( ) Not available at all
10. How do you come to know about the product?
A. ( ) Television b. ( ) News Paper
c. ( ) Magazine d. ( ) Family and Friends
e. ( ) Display at retail outlet f. ( ) Any other
11. How do you find the advertisement of the company for promotion of product?
a. ( ) Good b. ( ) Better
c. ( ) Best d. ( ) Satisfactory
12. Are you influenced by advertisement?
a. ( ) Yes b. ( ) No
13. What is the general quantity that you take in a frozen food product?
a. ( ) 2.5 kg b. ( ) 1 kg c. ( ) 1.5kg d. ( ) any other
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14. What improvement do you want?
a. ( ) Reduction in price b. ( ) Attractive Packing
c. ( ) Change in Taste d. ( ) None
15. Are you satisfied with McCain food product?
a. ( ) Yes b. ( ) No
16. Which Brand do you think is the Competitor of the McCain food products?
A. Godrej yummiez
B. Sumeru
C. Al Kabeer
D. Himalayan Veg
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