A STUDY ON CONSUMER PREFERENCE TOWARDS MILKA WONDER CAKE IN THE DIST.

OF ERODE

A project report submitted in partial fulfillment of the requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION SUBMITTED BY P.GOWTHAMAMOORTHY (35080190)

UNDER THE GUIDANCE OF

Ms.NISHA ASHOKAN
(Assistant Professor)

DEPARTMENT OF BUSINESS ADMINISTRATION SRM SCHOOL OF MANAGEMENT KATTANKULATHUR, CHENNAI 603 203.

CERTIFICATE
This is to certify that the project entitled A STUDY ON CONSUMER PREFERENCE TOWARDS MILKA WONDER CAKE , IN THE DIST.OF ERODE submitted to SRM School Of Management in partial fulfillment of the requirement for the award of the Degree of Master of Business Administration, is a record of the original research work done by P.GOWTHAMAMOORTHY(35080190) during the period of his/her study in the Department of Business Administration, SRM School Of Management, Chennai under my supervision and guidance and that the project has not formed the basis for the award of any degree/ associate ship/fellowship of other similar title to any candidate of any university.

ATTESTED

CERTIFIED

_______________________ Dean (Dr. Jayshree Suresh)

________________________ Guide (Ms.NISHA ASHOKAN)

Vivo-Voce held on Examiner

External

DECLARATION
I P.GOWTHAMAMOORTHY(35080190), hereby declare that the project entitled A STUDY ON CONSUMER PREFERENCE TOWARDS MILKA WONDER CAKE, IN THE DIST.OF ERODE submitted to SRM School Of Management in partial fulfillment of the requirement for the award of the Degree of Master of Business Administration, is a record of the original research work done by me under the supervision and guidance of Ms.NISHAASHOKAN, Head General Management, Department of Business Administration , SRM School Of Management, Chennai and that it has not formed the basis for the award of any degree/ associate ship/fellowship of other similar title to any candidate of any university.

Signature of the candidate

ACKNOWLEDGEMENT
I hereby take this opportunity to express my heartfelt thanks to T.R. PACHAMUTHU, B.Sc., M.I.E, Founder & Chairman, SRM Group of Educational Institution, Chennai.

Dr.

JAYSHREE

SURESH,

DEAN

OF

SRM

SCHOOL

OF

MANAGEMENT gave her kind permission to do this project. Ms.NISHA ASHOKAN, Assistant Professor, for giving me valuable suggestions and corrections without his support this report would have not been completed successfully. I extend my heartfelt thanks to

MR.

A.RAJA,

MANAGING

DIRECTOR,NEW HOPE FOOD INDUSTRIES (P) LTD.,ERODE. who had given me the necessary guidance and support while doing my project work in the company. I also thank all staff members who have helped me to be on the right track and to build a deeper understanding on the topic.

LIST OF CONTENTS
CHAPTER 1 2 PARTICULARS Bakery industry in India Profile 2.1 Company profile 2.2 Product profile Objectives of study 3.1 Need for study 3.2 Objectives of study 3.3 Scope of study 4.1 4.2 4.3 Research methodology Research design Sampling design and no. of samples Data collection methods 4.3.1 Primary data 4.3.2 Secondary data Questionnaire design Statistical tools used Limitations of study PAGE NO. 1 3 3 4 6 6 6 7 8 8 8 9 9 9 9 10 11 12 12 39 41 42 44 45 46 46 51

4.4 4.5 4.6 5

Data analysis 5.1 Interpretation of data 5.2 Statistical analysis Summary of findings Suggestions Conclusion Bibliography Appendix Questionnaire Brochure

6 7

LIST OF TABLES
TABLE NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 PARTICULARS PAGE NO. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38

Milka Wonder Cake Users- Age Wise Milka Wonder Cake Users- Sex Wise Milka Wonder Cake- Educational Qualification Wise Milka Wonder cake Users- Occupation Wise Wonder Cake Users- Marital Status Wise Wonder Cake Users- Size Of The Family Wise Milka Wondercake Users Income Wise User Wise Classification Of Wonder Cake Occasions of Using Wonder Cake Brand Awareness Reason for Brand Preference Stimulating Factor Which/Who Stimulates You To Prefer The Brand Frequent Use of Wonder Cake- Among Regular Users Users Wise Classification Of Milka Wonder Cake Consumers Opinion about Price Consumers Opinion about Taste Consumers Opinion about Self Life Consumers Opinion about Packaging Consumers Opinion about Availability Consumers Preference over Variety of Milka Wonder Cake Factors Influence Alternative Choice Alternative brand choice Consumers Opinion About Improvements In Milka Consumers Opinion about Various Improvements In Milka Consumers Who Are Selecting a Specific Brand Consumers Attending Media for Milka Advertisement Effectiveness of Media for Milka Advertisement

LIST OF FIGURES
FIGURE NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 PARTICULARS PAGE NO. 12 13 14 15 16 17 18 20 21 22 24 25 26 27 28 29 30 31 32 33 34 35 38

Milka Wonder Cake Users- Age Wise Milka Wonder Cake Users- Sex Wise Milka Wonder Cake- Educational Qualification Wise Milka Wonder cake Users- Occupation Wise Wonder Cake Users- Marital Status Wise Wonder Cake Users- Size Of The Family Wise Milka Wondercake Users Income Wise Occasions of Using Wonder Cake Brand Awareness Reason for Brand Preference Frequent Use of Wonder Cake- Among Regular Users Users Wise Classification Of Milka Wonder Cake Consumers Opinion about Price Consumers Opinion about Taste Consumers Opinion about Self Life Consumers Opinion about Packaging Consumers Opinion about Availability Consumers Preference over Variety of Milka Wonder Cake Factors Influence Alternative Choice Alternative brand choice Consumers Opinion About Improvements In Milka Consumers Opinion about Various Improvements In Milka Effectiveness of Media for Milka Advertisement

CHAPTER 1 INTRODUCTION
Bakery industry in India is the largest of the food industries with an annual turnover of about Rs. 3000 crores. India is the second largest producer of biscuits after USA. The biscuit industry in India comprises of organized and unorganised sectors. Bread and Biscuits form the major baked foods accounting for over 80% of total bakery products produced in the country. The quantities of bread and biscuits produced are more or less the same. However, value of biscuits is more than bread. The industry has traditionally been and largely continues to be in the unorganized sector contributing over 70% of the total production. Bakery products once considered as sick mans diet have now become essential food items of the vast majority of population. Though bakery industry in India has been in existence since long, real fillip came only in the later part of 20th century. The contributing factors were urbanization, resulting in increased demand for ready to eat products at reasonable costs etc.

Market Potential
The bakery units are unevenly spread among States. These are mainly concentrated in the States of Maharashtra, West Bengal, Andhra Pradesh, Karnataka and Uttar Pradesh. Industrially advanced States like Maharashtra and West Bengal have very Large number of bakery units. The per capita consumption is very high in industrialized States like Maharashtra and West Bengal. The Biscuits are becoming quite popular in rural areas as well. Nearly 55% of the biscuits are consumed by rural sector. The higher consumption of biscuits in rural area could be attributed to its position as a snack, longer shelf life and better taste which is liked by different cross sections of population. There is no marketing problem as every shop is a market for wafer biscuits. Bakery products still remain the cheapest of the processed ready to eat products in the country. The production of Bakery products has increased from 5.19 lakh tonnes in 1975 to 18.95 lakh tonnes in 1990 recording four-fold increase in 15 years. Among the bakery products, biscuits occupy an important place as they contribute over 33% of total products processed. Over 79% of the biscuits are produced by small scale sector consisting of both factory and non-factory units. The

growth rate for bakery products is estimated at an average of 9.8% per annum. The demand for bakery products will continue to increase in future. The estimated growth rate of 9.8% is on the lower side considering the present potentiality of bakery products, particularly in rural areas, where about 70% of the population lives. Encouraging trends in consumption of bakery products by population of lower and middle income groups indicate vast scope for consideration of nutritional enrichment of bakery products.

CHAPTER 2 2.1 COMPANY PROFILE

Milka wonder cake has become popular for manufacturing variety of cakes. It is recognized as one of the leading cake manufacturers in India. The company produces cake in terms of bar cakes, rich plum and roll cake. All variety of cake is being made from the hygienic and nutritive raw materials like pure wheat flavors. The cakes produced by the milka wonder cake are healthy, tasty, hygienic and boosting. It yields much calorie too and that assumes the significance of the best quality products as it increases the number of customers for the cake day by day. Milka the leading manufacturing of bakery products in south captures 70 % market share. The company was established in 1989 from which the company developed step by step to become one of the best bakery product manufacturing. New Hope Food Industries (p) Ltd (Milka Wonder Cake) is one of the units of milka group of companies. The other units of milka group of companies are pioneer bakeries private ltd (milka bread) milka nutriments pvt ltd (milka biscuits) all the units are situated in Erode. About Managing Director Mr. Raja is not only a business icon but also an active Managing Director. His Fifteen Years experience in the Bakery cake manufacturing field has resulted in the incorporation of a company named M/S New Hope Food Industries Ltd. in the year 1996. His hi-tech knowledge in cake manufacturing is vast. The rich experience helps him invent his own formula in manufacturing this cake in the technology and catering. This cake has become known as MILKA WONDER CAKE in its unique brand name. it stands No.1 product in its taste and best in quality. An educated man, Mr. Raja takes much interest in developing and catering technology and skills in producing cakes. The taste of Milka Wonder Cake is a favourite of everyone. Its name and fame has spread far and wide in India. It is proud to remember that Mr. Raja, a Business magnet is a recipient of ARCH OF EXCELLENCE AWARD 97 " which was awarded in ALL INDIA ACHIEVER'S CONFERENCE in recognition of his high level business services.

Cake Packaging Our company specializes in consumers packing suitable to the customer's requirements because of the staple commodity. There is a separate section which bestows care upon packaging material used as per customer's requirement and guidelines. Ours is a prompt packaging system that ensures safety of our cake products. Storage & Shipping Apart from manufacturing unit, our warehouse at Erode is well-known with hygienic storage facilities for storing and shipping of cake products. The company maintains proper ventilation and cleanliness with care. With periodical maintenance, dust free surroundings are preserved. Hygienic work environment with proper food handling practices are maintained. Strict hygienic regulation including no bare contact for packing staff and sanitized loading are implemented very carefully. In case of export packing, our company takes much care in stuffing items and a consolidated container takes care the safety of our cake products. Our Milka Wonder Cake scales new heights in future business as much the present as in the past. 2.2 PRODUCT PROFILE Company: MILKA Website: www.milkawondercake.com Milka wonder cake was established on Dec 1996 and the product is being produced by new hope industries (P) ltd situated in erode. This company manufactures only cake and its produces three types Slice cakes Cup cakes Rich plumb cakes Under this slice cake the selling is more .it is being produced in 6 states Orange 160 Gms.

 Chocolate 160 Gms. Vanilla 160 Gms. Fruity 160 Gms. Orange chocolate 160 Gms. Pineapple 160 Gms.

CHAPTER 3
3.1 NEED FOR THE STUDY I. New hope food industries (p) Ltd., needs to monitor the large force in the marketing environment and learn about changing customer needs

and wants, modern distribution channels, new competitors with their strengths and weakness etc., II. III. IV. Consumers play a vital role in selling and buying the wonder cake products. The consumers are the ultimate product user of the company. To improve the sales, the company should have well understanding about consumers needs and wants. 3.2 OBJECTIVES OF STUDY 1.1.1 PRIMARY OBJECTIVE The primary objective of the research is to access the new hope food industries (P) ltd, strengths and weakness in the wonder cake market through understanding the consumers preference towards milka wonder cake. 1.1.2 SECONDARY OBJECTIVE The objective of the study clearly specified as listed below: To measures the awareness of various brands among the people. To ascertain the consumers preference towards price, taste, packaging, self life, availability and advertising of milka among users of milka wonder cake. To identifies the alternative brand in the place of milka wonder cake. To identifies the nature of complaints from consumers about milka wonder cake. To measure the effectiveness of advertising and suitable media for advertisement of milka wonder cake. To compare and evaluate milka wonder cake with other cakes.

3.3 SCOPE OF STUDY The study helps to increase the advertisement of milka wonder cake.

 The study used to improve the quality of milka wonder cake in order to identify the competitors. The study helps to increase the taste and reduce the price of milka wonder cake. The study used to know consumers to use the wonder cake more frequently.

CHAPTER 4 RESEARCH METHODOLOGY

Methodology is a plan of action for a research project and explains in detail how data to be collected and analyzed and presented so that they will provide meaningful information. This section is to give enough background on the technical aspects of the study to allow the reader to appraise the quality of the information obtained. 4.1 RESEARCH DESIGN The descriptive research is used to identify the usuage of milka wonder cake in erode city. The questionnaire found to be the most suitable type of research instrument to collect the data from the retailers and consumers. As lot of information has to be collected for this study, personnel interview relied upon with a structured questionnaire. 4.2 SAMPLING DESIGN AND NO. OF SAMPLES 4.2.1 Sampling Unit Who is to be surveyed? The sampling for this study is any household and retailer who deal with various brands of wonder cake. 4.2.2 Sampling Size The sample size for the consumers survey is 100. 4.2.3 Sampling Method The quota sampling method selected for consumers. This sampling method used the principle of stratified random sampling, the researchers begins by constructing strata. In the consumer survey, compound stratification is used. The whole area in erode district is stratified into 7 taluks. From each taluk around 13 to15 respondents are selected in such a way that the sample would represent the age sex classification. 4.2.4 Area of Sampling

Erode city alone is selected to conduct this survey to lack of time and cost involved in collecting the information from various areas. 4.2.5 Period of Survey The survey is conducting during the period of months from March 14th to May 5th, 2010. 4.3 DATA COLLECTION Two types of data are collected. 4.3.1 Primary Data Primary data are collected by conducting direct structured interview by using questionnaire, it means all respondents are asked the same questions in the same fashion and they are informed the purpose of the study. 4.3.2 Secondary data Secondary datas collects from companys records, companys plan, proposal and other reports. 4.4 QUESTIONNAIRE DESIGN A questionnaire is an assembly of carefully formulated questions, designed to collect facts and opinions from the respondents. It is an important tool of the market researchers trade, as it is used to generate the raw data on which the findings were based. The aim of designing the questionnaire was To obtains accurate data. To makes the interview as interesting and stimulating as To be easily administered. To facilitates analysis. This involves the following steps: Constructing a questionnaire

possible to the respondent.



Arrangement of questionnaire Presenting the questionnaire

4.5 STATISTICAL TOOLS USED Analyze the data and interpret the results by using percentage analysis. 4.5.1 Percentage analysis Percentage refers to a special kind of ratio percentages are used in making comparison between two or more series of data. Percentages are used to describe relationships. Percentages also are use to compare the relative terms, the distribution of two or more series of data. No. Of respondents % of respondents = ------------------------------Total respondents 4.5.2 Chi-Square Test The chi-square test is one of the simplest and most widely used non-parametric tests in statistical work. The chi-square test was used by karl pearson in the year 1990. (O-E) 2 Chi-square = -------------E Where, O refers to the observed frequencies and E refers to the expected frequencies. *100

4.6 LIMITATIONS OF STUDY

The project is subject to the following limitations. i. ii. iii. The study being limited only to erode city may not truly represent the entire population. Some of the consumers are not cooperative they feel, participating in this survey does not give no benefit to them. Projection of these results to the entire population may not give the desirable significance results. Since this study only, cover the erode city.

CHAPTER-5

DATA ANALYSIS 5.1 INTERPRETATION OF DATA TABLE NO. 1 Milka Wonder Cake Users- Age Wise

S.No. 1 2 3 4

Age Below 20 20-30 30-50 Above 50 Total

No. of. Respondents 13 57 26 4 100 SOURCE: Primary Data

Percentage 13 57 26 4 100

INFERENCE All the age group of consumers are prefer milka brand, out of which the age group of 20-30 is highly contributed than any other age groups. The above 50 age group users are less attracted by milka brand. The age group of 30-50 contributes around 26 percentages only. FIGURE 1

TABLE NO. 2 Milka Wonder Cake Users- Sex Wise

S.No. 1 2

Sex Male Female Total

Users of wonder cake 74 26 100

Percentage 74 26 100

SOURCE: Primary Data INFERENCE Normally the population of male is more than female in sex wise. Here 74% of male respondents and 26% of female respondents are using milka. Hence it is concerned that men are highly attracted than women by the milka brand. FIGURE 2

TABLE NO. 3 Milka Wonder Cake- Educational Qualification Wise

S.No. 1 2 3 4 5

Educational qualification Illiterate Primary school Secondary school Graduate Post graduate Total

No. of. Respondents

13 11 28 43 5 100

Percentage
13 11 28 43 5 100

SOURCE: Primary Data INFERENCE From the above table, it is conclude that is 100% awareness of milka wonder cake among literate people. Even in the case of illiterate the awareness of milka wonder cake is 7%.

FIGURE 3

TABLE NO. 4 Milka Wonder cake Users- Occupation Wise

S.No. 1 2 3 4

Occupation Student Employed Business Unemployed Total

No.of. Respondents 29 33 30 8 100

Percentage 29 33 30 8 100

SOURCE: Primary Data INFERENCE Employed and business peoples are highly attracted by the milka wonder cake compared with other class of consumers.

FIGURE 4

S.No. 1

Marital status Single

No.of. Respondents 54

Percentage 54

TABLE NO. 5 Wonder Cake Users- Marital Status Wise

Married Total

46 100

46 100

SOURCE: Primary Data INFERENCE 54% of the wonder cake consumers belong to the category of single and 46% of the wonder cake consumers come under the category of married.

FIGURE 5

TABLE NO. 6 Wonder Cake Users- Size Of The Family Wise

S.No. 1 2 3 4

Size of the family Only two 2 to 4 4 to 6 More than 6 Total

No.of. Respondents 11 41 37 11 100

Percentage 11 41 37 11 100

SOURCE: Primary Data INFERENCE 37% of the wonder cake consumers belong to the family size category 4 to 6. 41% of the wonder cake consumers come under the category of 2-4 family size. Hence it is conclude that if the family size becomes large, the possibility of consuming wonder cake as a food is higher. FIGURE 6

TABLE NO. 7

Milka Wondercake Users Income Wise

S.No. 1 2 3 4

Income Below 2500 2500-4500 4500-6500 Above 6500 Total

No. of. Respondents 7 12 45 36 100

Percentage 7 12 45 36 100

SOURCE: Primary Data INFERENCE Milka wonder cake attracted the income wise between 4500-6500 category is high when compared to other categories. Next to this category, above 6500 category stands little bit less percentage than the 4500-6500 category.

FIGURE 7

TABLE NO. 8 TABLE 8.1 User Wise Classification Of Wonder Cake

SOURCE: Primary Data TABLE 8.2 S.No. 1 2 Classification User Non-user No.of. Respondents 91 9 100 Percentage 91 9 100

Total Reason For Not Consuming Wonder Cake S.No. 1 2 Classification I dont like the taste price is more than others Total

No.of. Respondents 6 3 9 SOURCE: Primary Data

Percentage 66.67 33.33 100

INFERENCE From the above tables, it is evident that 91% of respondents are using wonder cake and 9% of respondents are not using wonder cake. Therefore, new hope food industry should conduct the special survey to explore the non-users needs and wants. It will be very useful to increase the market share of new hope food industry as well as wonder cake industry.

TABLE NO. 9 Occasions of Using Wonder Cake S.No. 1 2 3 4 Occasions During Travelling Visiting Relative Houses Regular users Occasional users No. of. Respondents 21 38 22 10 Percentage 23 44 23 10

Total SOURCE: Primary Data INFERENCE S.No. 1 Brands Milka No. of. Respondents 43

91

100

Percentage 43

From the table it is evident that 23% of the consumers are buying wonder cake during travelling. 44% of the consumers are buying wonder cake when they are visiting relatives house. 23% consumers are regular users and 10% consumers are occasional users. FIGURE 8

TABLE NO. 10 Brand Awareness

S.No.

Amudham 2 Suriya 3 Spencers 4 Honey Food 5 Modern 6 Criteria 7 Others Total

13 10 9 8 4 No. of. Respondents 13 100

13 10 9 8 4 Percentage 13 100

SOURCE: Primary Data INFERENCE From that table, it is evident that 13% of consumers are aware of amudham, 43% of consumers are aware of milka wonder cake and only 10% of consumers came to know about suriya wonder cake. Others contribute around 13%.

FIGURE 9

TABLE NO. 11 Reason for Brand Preference

1 2 3 4 5 6 7

Low price Taste Self Life Attractive Packaging Availability Free Gift/Coupons Freshness Total

13 40 6 11 16 1 13 100

13 40 6 11 16 1 13 100

SOURCE: Primary Data INFERENCE 40% of consumers preferred their brand due to taste. Here also the importance of taste is proved. 13% of consumers preferred their brand due to low price, the factor is self life, which has 6% of consumers. FIGURE 10

TABLE NO. 12 Stimulating Factor Which/Who Stimulates You To Prefer The Brand Free Sex Advertisement Friends/Relatives Gift Men 27 15 2 Women 10 6 Self 13 7 Shopkeepers recommendation 17 3 Total 74 26

Total %

37 37

21 21

2 2

20 20

20 20

100 100

SOURCE: Primary Data INFERENCE 37% of consumers preferred their brand in pursuance of advertisements. Hence the vital role of advertisements in marketing is proved. 20% of consumers preferred the brand on their own. The suggestion of shop keepers is same as on their own preference. The suggestion of friends/relatives occupies the fourth place. Gifts/coupons can stimulate only 21% of consumers. It is to be noted that higher % of men are influenced than women by shopkeeper.

TABLE NO. 13 Frequent Use of Wonder Cake- Among Regular Users S.No. Frequency of buying No. of. Respondents Percentage

1 2 3 4 5

Daily Once In A Week Twice A Week Once In A Month Twice In A Month Total

17 16 34 13 20 100

17 16 34 13 20 100

SOURCE: Primary Data INFERENCE The above table shows that among the regular wonder cake users, 17% of consumers are buying wonder cake daily. 16% of consumers are buying wonder cake once in a week and 34% of consumers are buying wonder cake twice a week.

FIGURE 11

TABLE NO. 14 Users Wise Classification Of Milka Wonder Cake S.No. 1 2 Classification Milka Users Milka Non-users No. of. Respondents
68 32

Percentage
68 32

Total

100

100

SOURCE: Primary Data INFERENCE The above table shows that among the wonder cake users, 68% are using milka and the remaining 32% are using other brands. Comparing with the other brands more number of consumers using milka brand.

FIGURE 12

TABLE NO. 15 Consumers Opinion about Price S.No. 1 2 3 Opinion High Right Low Total No. of. Respondents 21 35 12 68 Percentage 31 51 18 100

SOURCE: Primary Data

INFERENCE 31% of respondents feel that the taste of milka brand is right. 51% of respondents feel that the taste of milka brand is high.

S.No. 1

Opinion High

No. of. Respondents 32

Percentage 47

18% of respondents feel that the taste of milka brand is low. FIGURE 13

TABLE NO. 16

Consumers Opinion about Taste

2 3

Right Low Total

34 2 68

50 3 100

SOURCE: Primary Data INFERENCE 47% of respondents feel that the taste of milka brand is right. 50% of respondents feel that the taste of milka brand is high. 3% of respondents feel that the taste of milka brand is low. FIGURE 14

TABLE NO. 17

Consumers Opinion about Self Life

S.No. 1 2 3

Opinion High Right Low Total

No. of. Respondents 18 39 11 68

Percentage 26 57 17 100

SOURCE: Primary Data INFERENCE 26% of respondents feel that the quality of milka brand is right. 57% of respondents feel that the quality of milka brand is high. 17% of respondents feel that the quality of milka brand is low. FIGURE 15

TABLE NO. 18

S.No. 1 2 3

Opinion High Right Low

No. of. Respondents

33 30 5 68

Percentage
49 44 7 100

Total Consumers Opinion about Packaging

SOURCE: Primary Data INFERENCE 49% of respondents feel that the packaging of milka brand is right. 44% of respondents feel that the packaging of milka brand is high. 7% of respondents feel that the packaging of milka brand is low. FIGURE 16

TABLE NO. 19

Consumers Opinion about Availability S.No. 1 2 3 Opinion High Right Low Total No. of. Respondents 34 30 4 68 SOURCE: Primary Data INFERENCE 50% of respondents feel that the availability of milka brand is right. 44% of respondents feel that the availability of milka brand is high. 6% of respondents feel that the availability of milka brand is low. Percentage 50 44 6 100

FIGURE 17

TABLE NO. 20

Consumers Preference over Variety of Milka Wonder Cake S.No. Consumers preference No. of. Respondents orange 160 Gms 1 13 chocolate 160 Gms 2 16 vanilla 160 Gms 3 12 fruity 160 Gms 4 10 orange chocolate 160 Gms 5 9 pineapple 160 Gms 6 8 Total
68

Percentage
19 23 18 15 13 12 100

SOURCE: Primary Data INFERENCE The different flavours are mentioned above, out of which chocolate flavour contributes major consumer preference is around 23%. FIGURE 18

TABLE NO.21

Factors Influence Alternative Choice S.No. Criteria No. of. Respondents Low price 1 12 Taste 2 7 Self Life 3 7 Attractive Packaging 4 14 Availability 5 19 Free Gift/Coupons 6 4 7 Advertisement Total
5 68

Percentage
17 10 11 21 28 6 7 100

SOURCE: Primary Data INFERENCE From the table it is evident that 10% customers prefered other brand as an alternative due to taste. Here also the importance of taste is proving. Like wise, 28% of consumers prefered due to availability, 7% of consumers prefered due to advertisement and 21% of consumers prefered attractive packaging. FIGURE 19

TABLE NO. 22 Alternative brand choice when milka wonder cake is not available in retail shop S.No. Alternative Brands No. of. Respondents Percentage Amudham 1 16 24 Suriya 2 14 21 Spencers 3 13 19 Honey Food 4 8 11 Modern 5 8 12 6 Others Total
9 68 13 100

SOURCE: Primary Data INFERENCE From the table it is evident that 24% of consumers are prefered amudham, 21% prefered suriya, 19% of consumers prefered spencers, 11% of consumers prefered honey food. Hence it is concluding that amudham and suriya become close alternative for milka. FIGURE 20

TABLE NO. 23

Consumers Opinion About Improvements In Milka S.No. 1 2 Opinion Improvements should be made No need Total No. of. Respondents
48 20 68

Percentage
71 29 100

SOURCE: Primary Data INFERENCE From the above table it is evident that 71% of consumers need improvements in milka and 29% of consumers do not need any improvements in milka. FIGURE 21

TABLE NO. 24 Consumers Opinion about Various Improvements In Milka S.No. 1 2 3 4 Criteria Rationalizing the price In Taste In Self Life In Packaging Total No. of. Respondents
15 11 11 11 48

Percentage
32 23 23 22 100

SOURCE: Primary Data INFERENCE From the table it is evident that 32% of consumers feel that the price of milka wonder cake should be revised. 23% of customers need improvement in taste and self life and

remaining 22% of consumers need improvement in packaging.

This shows most of the consumers consider the price of milka

wonder cake as high. Hence they want the price should be revised and improve the taste. FIGURE 22

TABLE NO. 25 Consumers Who Are Selecting a Specific Brand No. of. Respondents 72 28 100

S.No. 1 2

Classification Brand Selection by themselves Allows the retail shopkeeper to recommend a brand Total

Percentage 72 28 100

SOURCE: Primary Data INFERENCE 72% of consumers select a specific brand of wonder cake without allowing influence of anyone else. The remaining 28% of consumers do not bother about the brand and ready to buy any brand, which would be recommended by the retail shopkeeper.

TABLE NO. 26 Consumers Attending Media for Milka Advertisement

S.No. 1 2

Classification Exposure to milka Advertisement No exposure to milka Advertisement Total

No. of. Respondents 92 8 100

Percentage 92 8 100

SOURCE: Primary Data INFERENCE

 From the table, it is evident that 92% of consumers have watched the milka advertisement and 8% of consumers have not watched the advertisement of milka. This shows milka advertisement has captured a place in the minds of most of respondents.

TABLE NO. 27 Effectiveness of Media for Milka Advertisement S.No. 1 2 3 4 5 6 7 Classification Tv Radio
Press

No.of. Respondents
28 38 7 5 6 5 3 92

Percentage
30 41 8 5 7 6 3 100

Hoardings Banners Wall Painting Posters

Total

SOURCE: Primary Data INFERENCE

Advertisement through media is very essential to sell wonder cakes especially through television. Here advertisement through radio contributes around 41%.

FIGURE 23

5.2 STATISTICAL ANALYSIS

Test:

CHI-SQUARE TEST

H0-no significant difference between male and female H1-significant difference between male and female Observed frequency table GENDER Male Female TOTAL Expected frequency table Prefer Not Prefer TOTAL 40 34 74 15 11 26 55 45 100

41 14 55

33 12 45

74 26 100

Workings

O 40 15 34 11

E 41 14 33 12

(O-E)2 1 1 1 1

(O-E)2/E 0.024 0.071 0.03 0.083

(O-E) 2 Chi-square = -------------E Where, O refers to the observed frequencies and E refers to the expected frequencies.

By using the formula, chi- square(calculated value) = 0.208 Degrees of freedom can be calculated by using the formula, = (r-1)(c-1) = (2-1)(2-1) = 1 Where, r refers to no. of observed frequencies c refers to no. of expected frequencies From the table, chi-square is given by 3.28

INTERPRETATION The calculated value of chi-square is less than the table value. The hypothesis (H0) is accepted. Hence there is no significant difference between male and female. Therefore the usage of wonder cake does not depend on gender.

CHAPTER-6 SUMMARY OF FINDINGS

91% of people are consuming wonder cake and only 9% of people are not consuming. Among the non-users, 67% of people not liking the taste of wonder cake and 33% of them feel that the price of wonder cake is higher than other food product, which fulfils the same needs. Among the non-users the percentage of men is higher than that of women. Wonder cake is consumed well by different age groups of people. Major wonder cake consumers (45%) income ranges from 3000-5000. Major wonder cake consumers are employed and business people.

 If the family size is large, the probability of consuming wonder cake as a food is higher. As we have seen in occasional wise, those who are going to visit relative houses are the major wonder cake users. Major wonder cake users are using wonder cake at least twice a week. Advertisements play a major role in persuading people to use wonder cake.

CHAPTER-7 SUGGESTIONS

The proportion of population used to consume wonder cake as a food would increase in future. Hence there is long run marketing opportunity for new hope food industries (p) ltd., from the survey conducted among consumers the wonder cake market can be explained from the following characteristics: The market is large. Most of the market is aware of wonder cake. There is strong potential competition. Most of the buyers are price sensitive. Most of the buyers are quality conscious. Early adopters like wonder cake. Most of the consumers start buying wonder cake.

New competitors enter into market.

Based on the characteristics of the wonder cake market the researcher should make recommendations under the product, price, promotion, distribution and market. Consumers visualize and judge the quality of wonder cake based on their experience with functional performance (i.e) taste and price of the wonder cake. All milka users like the taste of milka wonder cake. Hence it is important to maintain the taste. New hope food industry should maintain its promotional expenditure at the same or at a slightly increased level to meet competition. The company should advertise in a manner to maintain its good reputation and high awareness. The advertisement role has been proved as effective in milka wonder cake sales. Hence the messages should repeat many times which allows the consumers to receive and compare the messages of various competitors. Consumers might believe that a heavily advertised brand must offer good value price. Most of the consumers feel that the price of the milka wonder cake is high. It is by most of the consumers. Further it seems that a price cut would not attract new consumers. Hence it is better to have the price remain as same. Availability is the crucial factors, which enable the consumers, get the preferred brand. However milka wonder cake is easily available in the market still more steps to be taken to meet the increasing demand. The company can try to attract the non-users of wonder cake.

 The company can try to attract the competitors consumers to try the milka wonder cake. The company can try to get consumers to use the wonder cake more frequently. The company can try to enter new market segment like illiterate peoples.

CONCLUSION

Since the study is confined only to erode district. The same research should be under taken in other areas, districts, or states. Research could be under taken to find out the non-users attitude towards wonder cakes, the non-users likes, dislikes and wants are to be exploding in order to make them wonder cake users. Most of the consumers have the opinion that the price of milka wonder cake is high. Hence the research could be doing whether a price cut attracts new consumers and competitors customers also.

BIBLIOGRAPHY
MARKETING MANAGEMENT Analysis, Planning, Implementation and Control Philip Kotler, Seventh edition, PHI, NEW DELHI, 1991.

RESEARCH METHODOLGY - C.R.Kothari, second edition, Wishawa prakashan, New Delhi.

MARKET RESEARCH - D.D.Sharma, first edition, Sultan chand & sons, New Delhi, 1996.

STATISTICAL METHODS S.P.Gupta, twenty seventh edition, Sultan chand & sons, New Delhi, 1995.

RESEARCH FOR MARKETING DECISION- Paul E. Greame, Donald S.Tull, General album, fifth edition PHI, New Delhi, 1995.

ANNUAL REPORT New hope food industries (P) Ltd., Erode.

APPENDIX
A STUDY ON CONSUMER PREFERENCE TOWARDS MILKA WONDER CAKE IN THE CITY OF ERODE Questionnaire 1) Name : 2) Gender :

O male
3) Age :

O female

O below 20 4) Educational Qualification O Illiterate

School

O 20-30

O 30-50

O above 50 O Secondary

O Primary School O Post Graduate O Employed

O Graduate
5) Occupation

O Student O Unemployed
6) Marital Status

O Business

O Single

O Married

7) Mention the Size of the Family

O only 2 O more than 6

8) Monthly Income

O 2-4

O 4-6

O Below 2500 O Above 6500 O Yes

O 2500-4500

O 4500-6500

9) Do you have the habit of buying wonder cake?

O No

IF YES, a) When do you buy cake

O During Travelling O Regularly

O Visiting Relative Houses O Occasionally

IF NO b) Mention The Reason For Not Consuming Wonder Cake

O I Dont Like the Taste O Price Is More than Other Food O Other: Specify_________________________
10) For whom are you buying wonder cake?

O Children O Grand Father/Grand Mother

O Father/Mother O For All

11) While Buying Wonder Cake, Rank The Following Factors That You Are Looking For

O Price O Attractive Packaging

Gift/Coupons

O Taste O availability

O Self Life O Free

12) Brand of wonder cake which you are aware of

O Amudham
Spencers

O Milka

O Suriya

O Modern O Low Price

Packaging

O Honey Food. O Others O Taste O Self Life O Attractive O

13) What is the reason to buy particular brand of wonder cake?

O Availability
Freshness

O Free Gift/Coupons

14) Which/Who influences you to prefer the brand?

O Advertisement O Free Gift/Coupons

Shopkeepers

O Friends/Relatives O Self

15) Normally you are buying wonder cake

O Daily
A Week

O Once In A Week O Twice In A Month O No

O Twice

O Once In A Month
16) Have you tried Milka wonder cake

O Yes

IF YES, a) What is your opinion about Milka wonder cake? Good Price Taste Self life Packaging Availability Medium Poor

O O O O O

O O O O O

O O O O O

IF NO, b) While buying wonder cake, do you ask a particular brand?

O Yes

O No O vanilla 160

(17) IF YES, Which variety of wonder cake do you like in milka? O orange 160 Gms O chocolate 160 Gms Gms

O fruity 160 Gms

O orange chocolate 160 Gms

O pineapple 160

Gms (18) If Milka wonder cake is not available in the market, which one of the following brand you prefer as alternative. O Amutham O Suriya O Spencers O modern

O honey food

O others

(19) State the reason preference of other brand as alternative when milka wonder cake is not available. O Low Price O Taste O Self Life O Attractive Packaging

O Availability

O Free Gift/Coupons

O Advertisement

(20) Do you think that milka needs any other improvements? O Yes O No (21) If Yes, O Rationalizing the price O Improvement in taste

O Improvement in self life O Improvement in packaging O If any other specify_________________________

(22) Which brand is recommended by the retailer? O Milka O Amutham

O Modern

O Honey Food

O Suriya O Others

O Spencers

(23) Do you hear/watch the advertisement of Milka? O Yes O No (24) Mention the media of milka advertisement that you come across O Tv O Radio O Press Hoardings O Banners O Wall Painting O Posters If Tv specify the channel_________________________

(25) Rank the advertisements of the following wonder cake. BRAND RANK Milka Amudham Suriya Spencers Honey Food Modern

Others (26) Do you prefer milka wonder cake? O yes

O No