RESEARCH PROJECT
ON
SESSION: 2008-10
Submitted To:
Dr. R. Darshan
MBA Faculty
Submitted By:
Kuldeep Sharma
MBA-2nd Sem.
Roll no: 2636
ACKNOWLEDGEMENT
(KULDEEP SHARMA)
PREFACE
A determination to succeed is the only way to succeed. For this, it is very
important that all knowledge, which we have, should be translated into action.
It is only then that we can achieve something. Project work is the way to
convert our raw talent into potential management. Classroom knowledge can
only then be efficient when it is effectively wedded to the realities of the
situation existing outside the classroom. In this project work place an
important role. In this regard, I was given a project entitled CONSUMER
PREFERENCES TOWARDS BISCUITS
CONTENTS
1. Industry Profile
2. Introduction about the study
3. Objective of the study
4. Research Methodology
5. Limitations
6. Data Analysis
7. Conclusion
8. Suggestions and Recommendations
9. Findings
12. Annexure
i)
Questionnaire
ii)
Bibliography
INDUSTRY PROFILE
1. Biscuit industry in India in the organized sector produces around 60% of
the total production, the balance 40% being contributed by the
unorganized bakeries. The industry consists of two large scale
manufacturers, around 50 medium scale brands and small scale units
ranging up to 2500 units in the country, as at 2000-01. The unorganized
sector is estimated to have approximately 30,000 small & tiny bakeries
across the country.
2. The major Brands of biscuits are - Britannia, Parle Bake man, Priya
Gold,Elite,Cremica, Dukes, Anupam, Horlicks, Craze, Nezone, besides
various regional/State brands.
3. Biscuit industry which was till then reserved in the SSI Sector, was
unreserved in 1997-98, in accordance with the Govt Policy, based on the
recommendations of the Abid Hussain Committee.
4. The annual production of biscuit in the organized sector continues to be
predominantly in the small and medium sale sector before and after dereservation.
BRITANNIA
The story of one of India's favourite brands reads almost like a fairy tale. Once
upon a time, in 1892 to be precise, a biscuit company was started in a
nondescript house in Calcutta (now Kolkata) with an initial investment of Rs.
295.
The
company
we
all
know
as
Britannia
today.
The beginnings might have been humble-the dreams were anything but. By
1910, with the advent of electricity, Britannia mechanised its operations, and
in 1921, it became the first company east of the Suez Canal to use imported
gas ovens. Britannia's business was flourishing. But, more importantly,
Britannia was acquiring a reputation for quality and value. As a result, during
the tragic World War II, the Government reposed its trust in Britannia by
contracting it to supply large quantities of "service biscuits" to the armed
forces.
As time moved on, the biscuit market continued to grow and Britannia grew
along with it. In 1975, the Britannia Biscuit Company took over the
distribution of biscuits from Parry's who till now distributed Britannia biscuits
in India. In the subsequent public issue of 1978, Indian shareholding crossed
60%, firmly establishing the Indianness of the firm. The following year,
Britannia Biscuit Company was re-christened Britannia Industries Limited
(BIL). Four years later in 1983, it crossed the Rs. 100 crores revenue mark.
On the operations front, the company was making equally dynamic strides. In
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1992, it celebrated its Platinum Jubilee. In 1997, the company unveiled its
new corporate identity - "Eat Healthy, Think Better" - and made its first foray
into the dairy products market. In 1999, the "Britannia Khao, World Cup Jao"
promotion further fortified the affinity consumers had with 'Brand Britannia'.
Britannia strode into the 21st Century as one of India's biggest brands and the
pre-eminent food brand of the country. It was equally recognised for its
innovative approach to products and marketing: the Lagaan Match was voted
India's most successful promotional activity of the year 2001 while the
delicious Britannia 50-50 Maska-Chaska became India's most successful
product launch. In 2002, Britannia's New Business Division formed a joint
venture with Fonterra, the world's second largest Dairy Company, and
Britannia New Zealand Foods Pvt. Ltd. was born. In recognition of its vision
and accelerating graph, Forbes Global rated Britannia 'One amongst the Top
200 Small Companies of the World', and The Economic Times pegged
Britannia
India's
2nd
Most
Trusted
Brand.
Today, more than a century after those tentative first steps, Britannia's fairy
tale is not only going strong but blazing new standards, and that miniscule
initial investment has grown by leaps and bounds to crores of rupees in wealth
for Britannia's shareholders. The company's offerings are spread across the
spectrum with products ranging from the healthy and economical Tiger
biscuits to the more lifestyle-oriented Milkman Cheese. Having succeeded in
garnering the trust of almost one-third of India's one billion population and a
strong management at the helm means Britannia will continue to dream big on
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PRIYAGOLD
10
The wondrous magical journey of our company Surya Food & Agro Ltd.
began in Oct. 1993 & since then we have been one of the leading
manufacturers of biscuits in northern India. Our brand PRIYAGOLD has
been a perennial household favorite since then. On a profound level spread in
to western as well as southern India, the inevitable cycle of distribution
network has helped us to spread into western India as well. Our obsession is to
make the finest quality biscuits available to the consumers & our constant
endeavor is to provide our consumers, a palate to look forward to a taste &
flavor that is uniquely PRIYAGOLD.
We are operating in the new age, ruled by the dizzying pace of technology,
poised to pace up with emerging trends thus improving quality standards
every time. Our fully automated ovens bake the biscuits round the clock and
then they find their way to the automatic packing units at the companys plant
in Surajpur, Greater Noida (U.P.), catering the ever growing demand of
PRIYAGOLD biscuits. This is reflected through our brands positioning
which says Haq Se Mango, a positioning that was formulated keeping in
mind that everyone has the right to good taste and the right to ask for it. We
feel that the means to finding the future lies in believing in ourselves. Our
over the period created trust and confidence, can never be destroyed, just like
the eternal force of nature. We adhere to ensure that PRIYAGOLD continue
moving forward towards achieve best quality for total consumers satisfaction.
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12
13
PARLE-G
Parle-G or Parle Glucose biscuits are one of the most popular confectionary
biscuits in India. Parle-G is one of the oldest brand names in India and is
considered the largest selling brand of biscuits in the world. For decades, it
was instantly recognized by its iconic white and yellow wax paper wrapper
with the baby face on it. Many competitors have tried to sell their lower
quality products by copying the packaging, trying to sell their biscuits as
Parel-G, Parle-Jee etc.
AFTER restricting its Milk Shakti variant to Tamil Nadu, Parle G has rolled it
out nationally. It will be pitted against Britannia's brand of Milk Bikis.
Mr. Praveen Kulkarni, Marketing Manager, and Parle Products, told Business
Line: "We are planning to take on Milk Bikis in this category. After trying to
get a share of the glucose segment in Tamil Nadu, we had decided to launch
the variant."
The southern markets continue to be the stronghold for the milk biscuit
category, and Milk Bikis has been the dominant brand so far.
Mr. Prabhakar Mundkur, President, Everest Integrated Communications
Private Ltd - the agency handling the Parle G brand - said: "Sales for the milk-
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based biscuits come predominantly from the South where such brands
continue to sell." Mr Kulkarni said, "We are planning to get aggressive and
grow this market."
Milk Shakti is pegged at Rs 5 for 100 gm. "We are no longer calling it a
glucose-based product. Instead, it will be positioned as a biscuit with the
goodness of milk and honey," he added.
With this value-added positioning, Parle G is hoping to gain volumes for its
franchise.
In the past, the company had introduced a premium Magix variant in flavors
such as elaichi, cashew nut and chocolate.
Mr A. Sundarajan, Managing Director, Market Search (a market research firm
working on the Parle G brand), said: "There has not been an alternative for
Milk Bikis at a national level and Parle G is merely trying fill that gap."
However, the company has no plans to take on the national atta market,
especially since it would have to contend with the likes of HLL and ITC.
Mr Kulkarni said, "There is still time for it (Parle G atta) to become a national
brand. We are simply test marketing the product in certain markets."
15
16
biscuit category will include only Parle G, Monaco and Krack Jack. The other
brands will not be aggressively supported by us in the market."
"This is because these three brands contribute substantially to our topline,"
Chauhan added.
The confectionery business, which is the other division of Parle Products,
currently contributes only 15 per cent to the company's total turnover.
Interestingly, the company started operations with the confectionery business
in 1929.
Chauhan elucidated: "The confectionery business has now taken a backseat
and has become a smaller part of our business because in India biscuits have a
larger market."
The company commands a 40 per cent marketshare in the Rs 35 billion biscuit
market in India. In the confectionery segment, the company enjoys a mere 15
per cent marketshare.
The company's confectionery portfolio comprises brands like Melody 2 in 1,
MangoBite, Poppins, Rol-a-cola, Kismi, Rosemint, Peppermint, Orange
candy, Fruit Drops, Pick n Pack and Tangy. Chauhan has picked up three core
brands from this category as well, they being Melody 2 in 1, Poppins and
MangoBite.
17
18
INTRODUCTION
19
INTRODUCTION
'Consumerism' is the part of our daily life. Everyday, we buy and consume
variety of goods and services that vary with our tastes and preferences.
Moreover, each consumes is unique, and this uniqueness is reflected in their
consumption behavior and pattern, and also purchases decisions. Studying the
consumer behavior is thus, helpful in understanding the purchase decisions
and performances of different consumers for a particular commodity or
service. Conceptually, consumer behavior is "the study of individuals, groups
or organization and the processes they use the dispose, for products, services,
experiences or ideas to satisfy the needs and impact that these processes have
on consumer and society"
'Biscuits' are commonly consumed by our society. It is not an essential
part of diet but its use is continuously going on for small or little hunger or for
taste or for status people use to eat biscuits.
Previously when biscuit were not so popular for diet purpose, it
was used as a diet for patients for kids for energy and taste, respectively. it is a
good alternate of oily snacks or for fast food although it is not an substitute for
daily meals. Now days, if we talk about our country, biscuits are consumed by
a large part of our population. we have a trend to serving biscuits to our guest.
It is only a status symbol but we can say that there is a trend of eating biscuits
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This study had to be performed in order 1. By keeping in view the importance of consumer behavior, the present study
deal with the factors influencing the consumers purchase decisions for
biscuits in Bhiwani city.
2. To demarcate between the individual or group preference, e.g. familys
influence on buying behavior.
3. To find that the people know the effects of over eating of biscuits and other
side effects.
4. To find out why the person eat the biscuits for taste, hunger, pleasure,
status, or for some other reason.
22
OBJECTIVES
23
24
individual's needs, wants and liking, hence it frame the set of values,
perception, preferences in the individuals which guides the consumer liking.
2) Psychological factors: Different psychological factors may be:
states.
Recognition,
esteem,
25
A motive is a need that is sufficiently driving the person to satisfy that need by
indulging in the activities that reduces the tension.
26
Economic Condition:
27
RESEARCH
METHODOLOGY
28
RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. One can also
define research as a scientific and systematic search for pertinent information
on a specific topic. In fact, research is an art of scientific investigation.
The main aim of research is to find out the truth which is hidden and which
has not been discovered as yet. For the purpose of the study it has adopted the
following research methodology:
Step I: Selecting a Research Design.
There are three types of research design.
a) Exploratory
b) Descriptive
c) Diagnostic
d) Experimental
Since the aim of the survey is to find out the Liking for Biscuits among
Various Consumers which is unknown yet, therefore exploratory and
descriptive research design has been chosen.
29
The people in this area are of mixed kind. Here we can find
30
people are professionals, businessmen etc. So, this is thus mixed society of
people.
SURVEY DESIGN:
Local survey:The survey was conducted keeping in mind the following target groups.
a) Persons of 0 - 10 years age groups.
b) Persons of 10 - 20 years age groups.
c) Persons of above 20 years age groups.
A striking feature of the survey was that almost all the persons selected
have liking for biscuits. People have liking for the different flavors of biscuits
such glucose, Chocolate, Milk and Orange. Only the first preference of the
flavor was consideration for the sake of inference.
Questionnaire details:Questionnaire, which is formalized set of questions for obtaining information
from respondents, was used as the primary research tool. The questionnaire
for consumers covered following main topics:1. Importance factors in purchase of a particular type of biscuits. Factors like
packing, taste, price.
2. Factors influencing consumers decision-making.
3. Degree of awareness among consumers about the side effect of high
consumption of biscuits.
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LIMITATIONS
32
LIMITATIONS
Every survey has some sort of limitations and this survey also has some
limitations:
1. Time constraints: limited time available was not enough to do the survey
without error.
2. People have not exact & appropriate knowledge on the recall of brands.
3. There might be wrong information provided in the Questionnaire.
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DATA
ANALYSIS
34
27
23
Table-1
35
The total number of male and female respondent in the project is 50 where the
male respondents are 27 & female respondents are 23.
12
15
8
6
6
3
Table-2
36
The factors effective the purchase decision of the people are advertisement 12,
suggested by friends 15, convinced by shopkeeper 8, price consideration 6,
taste 6, other 3.
18
20
12
Table-3
The most of the people in the society like the cream biscuits than the glucose
and cookies.
37
9
7
9
2
18
5
TABLE-4
The flavors which are liked by the persons are chocolate 9, vanilla 7, orange
9, elaichi 2, glucose 18, other 5.
38
12
Hungry
13
Pleasure
Status
Taste
Other
Table-5
The persons eat the biscuits when they are hungry 13, for energy 12, For
pleasure 9, for status 7, when some guests are in the house they serve them
biscuits for taste 7, others are 2.
39
13
9
7
12
9
Table-6
The table showing that the packing of the biscuits influencing the buying
decision is as follows highly 13, moderately 9, indifferent 7, insignificant 12,
and at all is 9 in total of 50 respondents.
40
23
12
12
3
Table-7
What the people thinks the after effects of eating biscuits are as follows. Most
of the people think that it leads to teeth decays 23, diabetes 12, fat 12, other
disease 3.
41
17
9
14
4
6
Table-8
The table shows that how much the customers are price sensitive. The price is
the factor, which is important to 17, indifferent to 9, very important to 14
insignificant 4, and the price not make any effect at all is only to the 6.
Self
Children
Parents
Friends
16
12
13
9
Table-9
DISCUSSION
43
Over the time, I learnt that people can look at the same thing quite
differently. They can describe to other as they saw it. Opinions are thus
formed. The perceptions often change our judgment. The study of this kind
can be used by brand managers in the biscuit industry as a tool for
comparative diagnostics and market preference stimulation under different
price and promotion scenarios.
The biscuits marketer can use segmentation strategy creatively to:-clearly identify the target groups.
-Focus the promotional effects to maximize cost gains effectively.
-create a strong positive image to offset competition.
Biscuit company can identify and fluid their strength by a calibrated
strategy to ensure that consumers see them in favorable light.
DISTRIBUTION
44
PROMOTION
The products are prompted through various mass media, influencing the
consumers to buy the product of an appropriate moment. Given the fact that
these are a number of alternatives available to the consumers, chances are that
he will buy the brand that is most readily available, in spite of the media
campaign. Certain promotional activities should be carried out for biscuits at
the retail outlets. These activities are known as merchandising and below line
promotion are planned to influence the consumers at the point of purchase.
ADVERTISING
45
PRICE
Consumer demonstrates heterogeneity in their price sensitivity to the biscuits .
however a higher price is of great concern for the majority of consumers.
There fore, we can say that biscuit consumers are highly price sensitive. The
major part of the sample is highly price sensitive
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CONCLUSION
47
CONCLUSION
The results of the survey are very interesting. The findings of this survey on
different age group consisting both male & female. Following results are
drawn here;
1. As the age of the increase the buying of the biscuits by parents shifts by
young age group according to their taste.
2. The people are very much affected by the advertisements, so they watch
ads of biscuits very carefully.
3. Persons who are either a habitual or occasional user, the price rise
effects the buying of biscuits.
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ANNEXURE
QUESTIONNAIRE
50
1) NAME: -
_______________________________________________________
MALE _______________
4) OCCUPATION: -
FEMALE ______________________
SERVICE_______________________
STUDENT ____________________________
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c) ORANGE _______________________________________________________
d) GLOCOSE ______________________________________________________
e) OTHER _________________________________________________________
10) DO YOU EVER THINK OF AFTER EFFECTS OF EATING BISCUITS SUCH AS :a) TEETH DECAYS __________________________________________________
b) DIABETES ______________________________________________________
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c) FAT ____________________________________________________________
d) OTHER DISEASE ________________________________________________
11) DOES PRICE OF THE BISCUITS AFFECT YOUR PURCHASE DECISION:a) NOT AT ALL ______________________________________________________
b) INSIGNIFICANT ___________________________________________________
c) IMPORTANT ______________________________________________________
d) INDIFFERENT ____________________________________________________
e) VERY IMPORTANT _______________________________________________
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BIBLIOGRAPHY
1. Gupta, S.P, (2000) Statistical Method sultan, chand & sons publication,
New Delhi.
2. Kotler, Philip, (2001) Marketing Management, prentice-hall of India
New Delhi.
3. Kothari, C.R, (1999) Research Methodology, prentice-hall of India
New Delhi.
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