CHAPTER -1

INTRODUCTION

CHAPTER I INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Today, India is 'The Oyster' of the global dairy industry. It offers opportunities galore to entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest growing markets for milk and milk products. A bagful of 'pearls' awaits the international dairy processor in India. The Indian dairy industry is rapidly growing, trying to keep pace with the galloping progress around the world. As he expands his overseas operations to India many profitable options await him. He may transfer technology, sign joint ventures or use India as a sourcing center for regional exports. The liberalization of the Indian economy beckons to MNC's and foreign investors alike. While world milk production declined by 2 per cent in the last three years, according to FAO estimates, Indian production has increased by 4 per cent. The milk production in India accounts for more than 13% of the total world output and 57% of total Asia's production. The top five milk producing nations in the world are India ,USA, Russia, Germany and France. Indias dairy sector is expected to triple its production in the next 10 years in view of expanding potential for export to Europe and the West. Moreover with WTO regulations expected to come into force in coming years all the developed countries which are among big exporters today would have to withdraw the support and subsidy to their domestic milk products sector. Also India today is the lowest cost producer of per litre of milk in the world, at 27 cents, compared with the U.S' 63 cents, and Japans $2.8 dollars. Also to take advantage of this lowest cost of milk production and increasing production in the country multinational companies are planning to expand their activities here. Some of these milk producers have already obtained quality standard certificates from the authorities. This will help them in marketing their products in foreign countries in processed form. The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs.53,500 crores by year 2010. This growth is going to come from the greater emphasis on the processed foods sector and also by increase in the conversion of milk into milk products.

INDIAN (TRADITIONAL) MILK PRODUCTS

There are a large variety of traditional Indian milk products such as Makkha - unsalted butter. Ghee butteroil prepared by heat clarification, for longer shelf life. Kheer a sweet mix of boiled milk, sugar and rice. Basundi milk and sugar boiled down till it thickens. Rabri - sweetened cream. Dahi - a type of curd. Lassi - curd mixed with water and sugar/ salt. Channa/Paneer - milk mixed with lactic acid to coagulate. Khoa - evaporated milk, used as a base to produce sweet meats.

REGULATORY FRAMEWORK
The dairy industry was de-licensed in 1991 with a view to encourage private investment and flow of capital and new technology in the segment. Although de-licensing attracted a large number of players, concerns on issues like excess capacity, sale of contaminated/ substandard quality of milk etc induced the Government to promulgate the MMPO (Milk and Milk Products Order) in 1992. Milk and Milk Products Order (MMPO) regulates milk and milk products production in the country. The order requires no permission for units handling less than 10,000 litres of liquid milk per day or milk solids upto 500 tpa. MMPO prescribes State registration to plants producing between 10,000 to 75,000 litres of milk per day or manufacturing milk products containing between 500 to 3,750 tonnes of milk solids per year. Plants producing over 75,000 litres per day or more than 3,750 tonnes per year of milk solids have to be registered with the Central Government. The stringent regulations, government controls and licensing requirements for new capacities have restricted large Indian and MNC players from making significant investments in this product category. Most of the private sector players have restricted themselves to manufacture of value added milk products like baby food, dairy whiteners, condensed milk etc. All the milk products except malted foods are covered in the category of industries for which foreign equity participation upto 51% is automatically allowed. Ice cream, which was earlier reserved for manufacturing in the small-scale sector, has now been de-reserved. As such, no license is required for setting up of large-scale production facilities for manufacture of ice cream.

PROPOSAL TO AMEND THE MMPO

A proposal to raise the exemption limit for compulsory registration of dairy plants, from the present 10,000 litres a day to 20,000 litres, is being considered by the Animal Husbandry Department. The 75,000-litre limit is likely to be raised either to 100,000 litres or 125,000 litres in the amended order. The new order would also do away with the provision for re-registration. Major dairy products manufacturers

SOME OF THE MAJOR DAIRY PRODUCTS MANUFACTURERS IN THE COUNTRY: Company

Nestle India Limited

Brands
Milo, Everyday

Major Products
milk powder and Dairy whitener Ghee, ice cream, and other milk products Malted Milkfood, ghee, butter, powdered milk, milk fluid and other milk based baby foods.

Milkmaid, Cerelac, Lactogen, Sweetened condensed milk, malted foods,

Milkfood Limited SmithKline Beecham Limited

Milkfood Horlicks, Maltova, Viva

Indodan Industries Limited

Indana

Condensed milk, skimmed milk powder, whole milk powder, dairy milk whitener, chilled and processed milk

Gujarat Co-operative milk Marketing Federation Limited H.J. Heinz Limited

Amuls

Butter, cheese and other milk products

Farex, Complan, Glactose, Bonniemix, Vitamilk

Infant Milkfood, malted Milkfood

Britannia Cadbury

Milkman Bournvita

Flavoured milk, cheese, Milk Powder, Ghee Malted food

FUTURE SCOPE
However, although milk production is a relatively efficient way of converting vegetable material into animal food and dairy cows, buffaloes, goat and sheep can eat fodder and crop by-products which are not eaten by humans, the loss of nutrients involved in production and the large amounts, often imported, of energy and equipment required in milk handling inevitably make milk a comparatively expensive food. Also, if dairying is to play its part in rural development policies, the price to milk producers has to be remunerative. In a situation of increased international prices, low availabilities of food aid and foreign exchange constraints, large-scale subsidisation of milk consumption will be difficult in the majority of developing countries. Hence, in the foreseeable future, milk and milk products in the majority of developing countries will not play the same role in nutrition as in the affluent societies of developed countries. Effective demand will come mainly from middle and high income consumers in urban areas. There are of course ways to mitigate the effects of unequal distribution of incomes. In Cuba where the government attaches high priority to milk in its food and nutrition policy, all pre-school children, urban and rural alike, receive a daily ration of almost a litre of milk at a reduced price, and cheap milk and milk products are made available to certain other vulnerable groups, while milk products outside the rationing system are sold at a price which is well above cost level. Until recently most fresh milk in the big cities of China was reserved for infants and hospitals, but with the increase in supply rationing has been relaxed. In other countries dairy industries have attempted to reach lower income consumers by variation of compositional quality or packaging and distribution methods or blending milk and vegetable ingredients in formula foods for vulnerable groups. For instance, pricing of products rich in butter fat or in more luxury packaging above cost level so as to enable sales of high protein milk products at a somewhat reduced price has been widely practised in developing countries

BACKGROUND OF THE STUDY

Curd is the fastest moving consumer product prepared and sold 365 days a year. The penetration of packaged curd is gradually increasing across all the income segments across all age groups. The market packaged curd is worth Rs. 3,000 crore and is growing at a rate of 25

3 percent per annum. The curd market has always been an unorganized sector with local curd manufacturers demand throughout the country.

The rapid changes in lifestyle and increasing disposable income of the storing higher income group have considerably increased the demand for cup curd. The market share of the organized sector share appears to be on the decline. Branding of curd too has become an integral part of all marketing activity. With the increase of per capita income, the consumption habits too have changed and expenditure for packaged and processed food have increased manifold. The market for packaged curd stands at a mere 3.5 percent (times food processing journal, June July 2009).

Sakthi is one of the top 5 positions of pouch cud seller in their selling regions. The diary business of ABT Foods has already established its sakthi brand as a household name in India and in some foreign countries. Sakthi dairies are now planning to launch a new product Cup Curd into the market. This launch is in line with the emerging trends of Quality, convenience and wellness that consumers are seeking in the new product. Sakthi Dairies is one of the most well known brands in the Dairy field. Sakthi pouch curds are is a fast moving product in the sakthi Dairy line. Due to tremendous demand from consumers of Sakthi dairy products the company has planned to launch Sakthi Cup Curd in the market. This made us explore the market potential of Cup curd in the coimbatore city as well as the various factors that influence the purchasing pattern of consumers while purchasing cup curd and the distribution penetration of the existing brand.

1.3 STATEMENT OF THE PROBLEM

Today, India is 'The Oyster' of the global dairy industry. It offers opportunities galore to entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest growing markets for milk and milk products. The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs.53,500 crores by year 2010. This growth is going to come from the greater emphasis on the processed foods sector and also by increase in the conversion of milk into milk products. Curd buissiness contributes a sizeable account to the Indian dairy industry. Sakthi dairies has recently planned to launch Cup Curd in coimbatore city. So they want to know the Market Potential of cup curd market potential of Cup curd in the coimbatore city as well as the various factors that influence the purchasing pattern of consumers while purchasing cup curd and the distribution penetration of the existing brand.

1.3 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE: Exploring the market potential of Cup Curd in Coimbatore City. Exploring the Consumption Behavior of the Buyer. Exploring the Distribution Penetration of the existing Brand. SECONDARY OBJECTIVE: To understand the leading Brand in Cup Curd Market. To understand the Factor influencing Purchase of cup Curd. To understand the Intention to buy a New Brand of Cup curd

1.4 SCOPE OF THE STUDY

By exploring the potential of Cup curd in coimbatore as well as the various factors that influence the purchasing pattern of consumers while purchasing cup curd and the distribution penetration of the existing brand, the company can understand the consumers preference and the attributes they expect from a new Brand of Cup Curd being introduced in a market. They can also understand the companys competitor and also their strategy of penetration.

1.5 TIME FRAME

The study was conducted for a period of 8 weeks from 10th mqy to 10th july 2010

1.6 LIMITATIONS OF THE STUDY

 The study was conducted only in modern trade outlets of coimbatore city.  The study was mainly focused on high income group.  The study was conducted only in specific areas around the coimbatore city.  The result may subject to variations due to seasonal variations.  The study was, of course subject to the familiar situations of the survey method. This includes the lack of opportunity to probe the respondents beyond the given answers.  The study was dependent on the responses given by the consumers who may be biased towards their responses.  The study was limited to specific brands like aroma, brittania, nilgiris, cavin kare and hatsun. It dint consider other local brands like vijay and smp.

1.7 CHAPTER SCHEME

The study has been organized and presented in Six chapters  The first chapter contains introduction, background of the study, statement of the problem, objectives of the study, scope of the study, time frame, limitations, & chapter scheme.  The Second chapter contains the organization Profile.  Third chapter presents the theoretical concepts and review of the previous studies regarding retailers satisfaction and expectations relating to the area of the research.  Fourth chapter contains the research methodology which is adopted in the study  Fifth chapter contains the analysis and interpretations of the data collected from the respondents of the data collected from the respondents of organized retailers of the coimbatore city.  Sixth chapter gives the summary of findings, suggestions, proposals and conclusions.

CHAPTER -2

ORGANIZATION PROFILE

2. COMPANY PROFILE:
2.1 THE SAKTHI GROUP
Straddling one of the fastest growing business groups in India today, the Sakthi Group is a Rs.1600 crore industrial conglomerate many successful member companies play a significant role in the agricultural, industrial, financial, servi ce sector and social developmentPollachi . The Sakthi Group has spread its roots into Sugar, Industrial Alcohol, Effluent, Treatment Plant, Auto Components, Textiles, Transport, Finance, Beverages, Soya Products, Dairy Products, Synthetic Gems manufacture and Plantations. From then on, there was no looking back. In its pursuit of business excellence, the Group has always thought of its social commitment. . But it was here,that Nachimuthu Gounder laid the foundationof the Sakthi Group. It was in this year,P. Nachimuthu Gounder broke away from histraditional business of hiring out bullock carts,into pioneering a passenger transport service. Anamallais Bus Transport (ABT ), the parent a dutiful corporate citizen, the Sakthi Group has over 21 buses and a network in institutions, hospitals and religious centres. It stages, to cover almost all of South India. has also made significant contributions to rural development with a variety of social welfare. In 1946, P. Nachimuthu Gounder's only son activities and by creating employment N. Mahalingam joined the business. This young opportunities through its multi -fold agro-based engineering graduate brought with him fresh and other industries.

2.2 ABOUT ABT FOODS

Abt foods belongs to the US$ 500 million Sakthi Group which is well diversified into Dairy,Sugars, soyas, Textiles,Transport,Finance<auto Components and also running various educational institutions. Sakthi has built a strong trust of over 75 years.The dairy business has already established its sakthi brand as a house holdname in India and in some foreign countries. ABT foods is now planning to expand its overseas market.

2.2.1 MISSION:
It is the unflinching commitment of bringing the very best to its customerd that has made it one of the most renowned corpo rate houses in south India, today, millions of homes across India and a growing number in the international market live life the 10

sakthi way: a life that assures the Taste of Purity and Stands as a Promise for Quality. One of the reasons why Sakthi Dairy Pr oducts are known for their Quallity is because the company controls each parameter of quality from the udder to the customer,. The companys endevour stems from its sound business practices, a taste of the art and R&D setup, strong team values and a commitment to bring the very best of products.

2.2.2 FARM TO HOME FRESHNESS

At ABT foods, they collect milk from the farmers at 1500 village level collections centers(VLCC). Their vVLCCs are equipped with milk weighing and milk testing facilities. The milking time is so adjusted that the milk reaches the VLCCs as soon as the milking is done. The aggregated milk is transpoted to the nearest BULK Milk Chillin Center(BMCC). This enables efficient cooling of milk to 4 Degree Celcius in two hous time. This process has aenabled them to achieve globally acceptable standards. The chilled milk is lifted by insulated tanker trucks from BMCC and hauled to the main dairy plant for processing. Te milk collection system is backed by good veterinary and allied services and a strong audit procedure. The cattle feed supplied to the farmers is regulated and moniterd by the company to ensure proper feeding system.

2.2.3 MILK PROCESSING

In the state-of0art processing plant, the milk is processed,pasteurized and standerdised to meet the legal requirements in terms of composition of milk solids and bacteriological quality. HTST pasteurizes are used to pasteurize the milk to get the best bacteriological quality. Yje quality procedures ensures testing of milk at various stages of processing and monitoring the processing parameters so as to make the processed milk safe at every aspect.

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2.2.4 MILK PRODUCTS

The dairy manufactures several milk products like  Curd A fermented product similar to yoghurt  Ghee - purified & clarified butter fa t similar to butter oil  Sterilized Flavoured Milk Milk with Added Flavour  Paneer - An acid Coagulated product similar to cottage cheese  Butter - Milk Fat  Milk Powder- Powdered Milk

2.2.5 THE DRIVING FORCE BEHIND SAKTHI..

Dr. N. Mahalingam known as Arutchelvar is theChairman of the Sakthi Group. He joined hisfather Shri P. Nachimuthu Gounder in business in 1943. His untiring efforts and able guidance over the past years have made the Sakthi Groupwhat it is today.Dr. N. Mahalingam in many ways is an inst itution by himself. A scholar, a statesman, his interest inpolitics, education, economics and religion arereflected in all his endeavours. He is a known philanthropist and a true Gandhian. And hissocial mission, true to his belief in St.Vallalar,has been t he pursuit of excellence be it inbusiness or matters of the spirit. He has been instrumental in the revival and spiritual regeneration of Tamil literature.

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CHAPTER -3

REVIEW OF LITERATURE

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3.1 MARKET POTENTIAL AND MARKET SIZING ANALYSIS

Market analysis services from Mapping Analytics help you know the economic opportunity available to you in any geographic market. Whether you sell to consumers, to businesses, or both, market sizing provides intelligence you need to deploy sales and marketing resources effectively.

3.1.1 BENEFITS OF MARKET POTENTIAL ANALYSIS

y y y y

Understand market potential for a single store, network of stores or a new market Deploy resources effectively by ranking markets in priority order Forecast total opportunity in terms of number of customers and revenue potential Estimate your market share

3.2 MARKET POTENTIAL ANALYSIS ON FUNCTIONAL FOOD PRODUCTS

These functional food products result from: technological innovation at the processing level, such as cholesterol lowering spreads, xylitol-sweetened chewing gum, and dairy products fermented with specific lactic acid bacteria; technological innovation at the production level such as genetically modified crop seeds3 (e.g., Golden rice) and planting materials derived through conventional breeding (e.g., orangefleshed sweetpotato); or crops that naturally contain components that have a physiological function (e.g., soy bean and oats, which are good for cardio-vascular health).

3.2.1 INTRODUCTION
Functional foods entered the global markets with force in the past decade and rapidly gained market share conservatively estimated to exceed that for organic foods. Thus, in addition to the health benefits, functional foods present new economic opportunities. Functional foods sell at higher prices and contain larger profit margins than conventional foods, which make the sector attractive for the players in the supply chain. Retail prices of functional foods are typically 30 to 500 percent above the comparable conventional foods. Confusion over the definition of functional foods makes it difficult to

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estimate the exact size of this sectorglobal market size has been estimated between US$30 and US$60 billion depending on the definition,with Japan, the United States, and Europe as the biggest markets. Regardless, the global functional foods sector grew exponentially over the past years with an approximately 10 percent annual increase in value. As a result, developing countries have started to emerge as exporters to cater to the increasing demand in the developed countries (see Box 1 for examples). Moreover, demand for functional foods within the developing countries is growing, presenting a lucrative opportunity to develop domestic markets (see Box 2 for examples). The economic returns from functional foods can offer improved opportunities for all members in the supply chain: from raw material producers and processors to retailers.Functional foods can be an opportunity for economicgrowth for many developing countries endowed with rich biodiversity and traditional knowledge of the health effects of certain indigenous plant species. Some developing countries can also be competitive in production due to lower labor costs (e.g., 10 percent lower soybean production cost in Chinas northeast region than in mid-west U.S. (Ford et al. Forthcoming)). Besides the opportunity for diversified and high-value production, farming for the functional foods industry can benefit primary producers and rural communities in other ways. Poorer communities can benefit from growing functional food markets through domestication of wild plant species; enhanced links to the private sector, for example, through contract farming; employment or business opportunities from processing functional foods; and employment on plantations.

3.2.2 FUNCTIONAL FOODS: OPPORTUNITIES AND CHALLENGES FOR DEVELOPING COUNTRIES

By: Melissa Williams, Elijah Peru, and Catherine ragasa Issue 19 September 2006 the World Bank Moreover, some of the crops with health-enhancing features may be native to marginal areas, where more traditional farming is difficult and returns are low. Lastly, functional properties can increase the value of otherwise rare plant species, which can aid in biodiversity conservation if their sustainable use is carefully managed.Still, relatively little is known about the current status of functional food production, products, and market development in most developing countries. A recent study(Kotilainen et al. 2006) sought to narrow this knowledge gap by reviewing the status of the functional foods sector through a

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literature review, in-depth studies of India and China, and an assessment of the sector in five countriesChina, India, Brazil, Peru, and Russia.

3.2.3 CHALLENGES AND SUCCESS FACTORS IN THE SECTOR

Even though developing countries are a rich source of raw materials for functional food products because of their vast biodiversity and cost advantages in crop production, developing a functional foods industry in these countries faces significant barriers. The cost of bringing a new product to the market can be significant, especially the upfront costs associated with high-value food processing and exporting (search for markets, product research and certification, meeting regulatory demands, consumer research, and public relations). Below are some of the major challenges and recommendations for how a country might tackle them.

3.2.4 THE REGULATORY FRAMEWORK.

Most countries lack a suitable regulatory category for these hybrid functional food products, which makes market development much more complicated. A clear regulatory system for production, sales, certification, and advertising of functional foods, together with consistent enforcement are critical factors in building consumer trust in functional foods. A credible system can also help to provide a level playing field that fosters competition and encourages innovation. In many cases, development of institutional capacity is necessary. These institutions include food research centers, advisory services for producers, educators in food sector marketing and management, and authorities approving health claims for functional foods.

3.2.5 THE UNDERLYING SCIENCE.

The development and marketing of functional foods require significant research efforts because most markets require scientific evidence Brazil: Manufacturers in Japan and the U.S. obtain plant-based physiologically active ingredients such as antioxidant compounds from acai-berry, guarana, and yacon. Kenya: There is a potential to develop the camel milk sector for the domestic market and to respond to the demand from South America. Camel milk has medicinal properties, especially in management of diseases such as diabetes, high blood pressure, heart disease, allergies, and peptic ulcers. Camel milk can be found in a number of supermarkets in Nairobi. 16

 Peru: Purple corn, yacon, maca, and cats claw are exported to Japan and the U.S. The export value of just two plants, purple corn and yacon, grew at an average annual rate of 467 percent and 335 percent, respectively,from 1998 to 2002. Dozens of companies are involved in export. Source: EMBRAPA; BioTrade Peru 2004; Gitonga 2006; Authors. Functional Food Benefit to Health and Well -being Oats (beta-glucan) Heart health Eggs with increased omega-3 content achieved by altered chicken feed Heart health Margarine fortified with plant sterols Improved cholesterol levels Fermentation with specific bacteria to yield bioactive peptides Lowers blood pressure Chewing gum sweetened with xylitol instead of sugar Helps prevent dental caries Golden rice Pro-vitamin A .Orange-fleshed sweetpotato Pro-vitamin A and proof of functionality. Even though certain foods may have been used for a long time for health-enhancement purposes, the definitive scientific support for claims as a functional product is often lacking. This involves identifying functional compounds and assessing their physiological effect, taking into account bioavailability in humans and potential changes during processing and food preparation and clinical trials on product efficacy in order to gain approval for healthenhancing marketing claims. This research requires time, financing, and skilled labor, especially for products destined for export markets. Lastly, innovation and research capacity is required to screen local biodiversity to uncover potential new sources for functional foods. This is also a management culture challenge for researchers because the best results can be obtained through partnerships between formal science institutions and indigenous communities.

3.2.6 UNDERSTANDING DEMAND.

As implied above, the requirements of the market will define what regulations,actions, and science are needed in the producing exporting country. This market information needs to permeate through the entire value chain of the product from producer to retailer. This would enable improved strategic decision-making and better coordination and collaboration between the players in the supply chain. As market demand and the associated regulations differ in different markets, transaction costs in the export market are significant for individual companies. Specialized market development and export promotion services might offer a way to address this challenge. Moreover, policymakers need to concentrate on harmonizing regulations with those of major export markets to reduce

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potential trade barriers and unnecessary duplication of work for different markets. Producers, processors, and retailers need to pay attention to both domestic and export markets. While in 2003, Japan, the United States, and Europe comprised 90 percent of global demand for functional foods (Datamonitor2004), increased incomes in developing and transitional economiesespecially China, Russia, and Brazilcurrently feed a growing domestic market for functional foods.

3.2.7 UNDERSTANDING SUPPLY.

As mentioned before, developing countries often have a wealth of biodiversity to develop their functional foods sector. However, a sustainable management plan for these resources is The Asociacin de Productores de Yacon de Oxapampa (APYEDO), a producers association, with the assistance of the International Potato Center in 2002, started producing syrup, juice, marmalade, and dehydrated flakes utilizing yacon, which contains an oligofructose, utilized for low-caloric beverages and known to be beneficial for diabetic patients. Since 2003, several supermarkets in Peru have offered yacon syrup, juice, marmalade, and tea leaves. Source: International Potato Center (CIP) 2004.Small but Growing Functional Food China: The total functional foods market is approximately US$6 billion per year, which is expected to double by 2010. India: With its strong tradition of eating healthy foods, India ranks among the top ten nations in buying functional foods and the market size is expected to nearly double in the next five years. Brazil: The sector is relatively young, growing rapidly and has significant room for further growth. Salesvalue is projected to reach US$1.9 billion by 2009, which translates into a growth rate of 29 percent per capita spending on functional foods during this period. Peru: The sector for health foods, in general, is still in early stages, but has potential for growth because of rich biodiversity in roots and tubers containing diverse sugars and carbohydrates, which can respond to the demand for low-fat and sugar-free products. Russia: The value of functional foods market was estimated at US$75 million in 2004, with an annual growth of 20 percent expected. The dairy industry took the lead in the functional foods movement and the largest growth is expected in this sector. Source: Sun 2006; Ismail 2006; Benkouider 2005; Gutierrez 2004; Drujinina 2005; Spiridovitsh 2005.

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On the regulatory level, it is also important to have intellectual property rights protection for new products developed in-country with equitable benefit sharing between local communities and developers ofthe products. Besides a well-defined regulatory framework, factors that enable a successful market for functional foods include: consumer awareness of health issues and their linkage to diets; consumer acceptance of food solutions to health issues; sufficient disposable income level; organized retail sector; and mature markets for processed foods.

3.2.8 CONCLUSION
Developing countries can enjoy the benefits of the functional food sector to expand options for producers and to promote growth in the sector through partnerships between research centers, private entrepreneurs, and indigenous communities. However, the success requires sufficient proof to establish the health claim and capacity to accurately market functional foods to consumers in high-end markets. Countries that are interested in this sector should also assess the opportunities at the national level because functional foods cover such a broad group of products and production systems that some can find demand in the domestic market, while others can be targeted for export. Identification of specific export markets, certification and other regulations, and consumer demand are product and/or ingredientspecific, and largely dictate the possibilities for development. Further studies could establish the most critical bottlenecks in production systems and identify opportunities with the greatest potential for rural employment creation and competitive advantage for small-scale farmers as producers of functional foods.

3.2.9 SOURCES
           Benkouider, C. 2005. The Worlds Emerging Markets. Functional Foods & Nutraceuticals BioTrade Peru. 2004. PROMPEX. Export Promotion Strategy http://www.biotrade.org http://www.cee-foodindustry.com/news/ng.asp Functional Foods: Country Case Studies of China and India. Agriculture and Rural Development Discussion Paper 31, World Bank, Washington, DC. Gitonga, M. 2006. Kenya: Firm to Supply Camel Milk. The Nation (Nairobi). May 16. Accessed on June 6, 2006 at http://allafrica.com/stories/200605160591.html. Gutierrez, V. 2004. Peru Retail Food Sector Report. GAIN Report #PE4019 . Health Enhancing Foods: Opportunities forStrengthening the Sector in Developing Countries.

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CHAPTER -4 RESEARCH METHODOLOGY

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CHAPTER 4 RESEARCH METHODOLOGY

4.1 RESEARCH DESIGN

DESCRIPTIVE STUDY A descriptive type has been adopted for the study. A research design is the arrangement of conditions of the collection and analysis of data in a manner that aims to combine relevance to the research purpose. The main aim of selecting descriptive research is to describe the state of affairs, as it exists at present and for the future purpose.

4.2 SAMPLING DESIGN AND TECHNIQUE

4.2.1 SAMPLING DESIGN

It describes the series of advance decisions or models regarding the sample of the conduct of the investigation. In this is sampling design. The study is mainly based on convenience sampling; first hand information is collected and used in the study . information obtained from sample of 200 consumers. For the purpose of collecting data, questionnaires were administered in person to all respondents. 4.2.2 GEOGRAPHICAL AREA Sampling population refers to the respondents of the study. Sampling population is consumers of modern trade outlets in different parts of coimbatore city.  Spencers daily  Nilgiris  More  Reliance fresh 4.2.3 SAMPLE SIZE The sampling size of 200 customers was taken.

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4.3 DATA COLLECTION METHOD Data collection is an act of collecting relevant and adequate data required for the research from the sample. The mode of collection of primary data was survey method based on interview schedule. 4.3.1 PRIMARY DATA Primary data are those which are collected freshly or newly for a particular purpose. Here the data are collected freshly from the customers who came to modern trade outlets. The mode of collection of data was survey method based on interview schedule. 4.3.2 SECONDARY DATA The secondary data was collected from the internet,journals,books,reference people and companys sales data.

4.4 PILOT STUDY

A pilot study with 20 respondents was carried out to test the instrument (questionnaire). The pilot study was done in the following organized retail outlets: reliance fresh department stores, more departmental stores, nilgris departmental stores, spencers daily departmental stores.

4.5 DATA ANALYSIS

Following are the statistical tools used. 4.5.1 PERCENTAGE ANALYSIS This analysis was made to determine the percentage of respondents fall under each category, this helps to standardize the respondents on various aspects. 4.5.2 CROSS TABULATION Cross tabulation is done using which the number of responses are identified discipline-wise. Using the cross tabulation the proportion or percentage of consumers expressing the kind of responses is computed. For studying the problem based on the cross tabulation appropriate test procedure is adopted. In order to identify whether the populations of respondents are identical.

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4.5.3 WEIGHTED AVERAGE MEAN This method is used to find out the average consumption of Cup Curd of the respondents in a week. With which the Market potential of Cup Curd in Coimbatore city can be calculated.

4.5.4 CHI SQUARE In this method a Null Hypothesis and a Alternate Hypothesis is set. The Significant relation between two variables can be tested using this method. Like using this method the significant relation between age and consumption factors can be estimated.

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CHAPTER -5

ANALYSIS AND INTERPRETATION

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ANALYSIS AND INTERPRETATION

This chapter presents the analysis and interpretation of the data collected from the 200 respondents in coimbatore city. The data collected were analyzed using appropriate statistical tools to make valid inferences based on the objective of the study. The results of the analysis sre presented in this chapter for drawing specific inferences related to the study. Percentage analysis, Weighted Average Mean, Cross Tabulation and Chi- Square test are used for analysis.

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5.1 PERCENTAGE ANALYSIS

TABLE 5.1.1 DISTRIBUTION SHOWING AGE OF THE RESPONDENTS Age Group No of Respondent s Percent 5 9 28 29 27 36 46 20 200 2.5 4.5 14.0 14.5 13.5 18.0 23.0 10.0 100.0 CHART 5.1.1 CHART SHOWING AGE OF THE RESPONDENTS:

less than 16 16-20 21-24 25-28 29-32 33-36 37-40 41 and above Total

50 45 40 35 Respondent 30 25 20 15 10 5 5 0 less than 16 16-20 21-24 25-28 29-32 33-36 9 28 29 27 36

46

20

37-40

41 and above

Age Group

INFERENCE:
From the above table it is understood that out of total respondents taken majority of them belong to an age group of 37-40. Hence the consumption of cup curd is high in that age group

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TABLE -5.1.2

DISTRIBUTION SHOWING GENDER OF THE RESPONDENTS Gender Male Female Total No of Respondents 30 170 200

Percent 15.0 85.0 100.0

CHART SHOWING GENDER OF THE RESPONDENTS

Male 18%

Female 82%

Inference:
From the above table it is clear that majority of the Cup Curd consumers are Female.

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TABLE -5.1.3 DISTRIBUTION SHOWING OCCUPATION OF THE RESPONDENTS Occupation Student House wife Employed Professional Others Total No of Respondents 34 75 45 30 16 200 CHART 5.1.3 DISTRIBUTION SHOWING OCCUPATION OF THE RESPONDENTS

Percent 17.0 37.5 22.5 15.0 8.0 100.0

80 70 60 50 Respondents 40 30 20 10 0 Student
34

75

45

30 16

House wife Employed Occupation

Professional

Others

INFERENCE:
From the above table it is transparent that when compared to other occupations House Wife prefer using Cup Curd more. 35% of the total respondents are house wifes .Hence it is inferred that Majority of the respondents who use Cup Curd are House Wife.

28

TABLE -5.1.4 DISTRIBUTION SHOWING INCOME OF THE RESPONDENTS Income less than 15000 15000-30000 30000-45000 45000 and above Total No of Respondents 17 67 89 27 200

Percent 8.5 33.5 44.5 13.5 100.0

CHART 5.1.4 DISTRIBUTION SHOWING INCOME OF THE RESPONDENTS

90 80 70 60 50 Respondent 40 30 20 10 0 less than 15000 15000-30000 30000-45000 Income 45000 and above 17 27 67 89

INFERENCE:
From the above table it is clearly understood that Cup Curd is preferred mostly by the people who belong to the High income group. Hence it is inferred that 89% of the total respondents belong to a high income group between 30000-45000.

29

TABLE -5.1.5

DISTRIBUTION SHOWING NUMBER OF MEMBERS OF THE RESPONDENTS

Family Member Two Three Four Five Total

No of Respondents 23 75 76 26 200

Percent 11.5 37.5 38.0 13.0 100.0

CHART 5.1.5

DISTRIBUTION SHOWING NUMBER OF MEMBERS OF THE RESPONDENTS

Five 13%

Two 12%

Four 38%

Three 37%

INFERENCE:
From the above table it is clearly understood that most of the respondents have four persons in their family.

30

TABLE -5.1.6 DISTRIBUTION SHOWING QUANTUM OF CONSUMPTION OF THE RESPONDENTS

Quantum Non Consumers of Cup Curd 125gm-625gm 625gm-1250gm 1250gm-1875gm 1875gm-2500gm

No of Respondents 16 111 62 7 4

Percent 8% 55.5% 31% 3.5% 2%

CHART 5.1.6 DISTRIBUTION SHOWING QUANTUM OF CONSUMPTION OF THE RESPONDENTS

120 100 80 60 40 20 16 0
Non Consumers of Cup Curd 625gm-1250gm 1875gm-2500gm 125gm-625gm 1250gm-1875gm

111

62

INFERENCE:
From the above table it is clear that 111 of the total respondents consume a quantum of 125gm 625 gm . Hence it is inferred that most of the respondents consume about 5-10 cups of cup curd in a week.

31

TABLE 5.1.7 DISTRIBUTION SHOWING OCCUPATION * FAT PERCENT CROSS TABULATION OF THE RESPONDENTS Fat Percent Occupatio Non Total n consumers 1.7% 3.0% 4.5% Others of cup curd Student House wife Employed Profession al Others Total 4 7 4 1 0 16 15 32 17 12 7 83 9 22 18 13 6 68 5 13 5 3 3 29 1 1 1 1 0 4 34 75 45 30 16 200

CHART 5.1.7 DISTRIBUTION SHOWING OCCUPATION * FAT PERCENT CROSS TABULATION OF THE RESPONDENTS

35 32 30

25 22 Respondent 20 17 15 15 12 10 7 5 4 4 1 0 Non consumers of cup curd 1.70% 3.00% Fat Percent Student House wife Employed Professional Others Fat Percent 4.50% Others 7 9 6 13 13

18

5 3 3 1 1 1 1 0

INFERENCE: Hence from the above table it is inferred that most of the respondents prefer Low Percentage of Fat content in cup curd. Out of the 83 respondents who prefer low fat content most of them are house wives.

32

5.2 CROSS TABLES

TABLE -5.2.1 DISTRIBUTION SHOWING OCCUPATION * CUP CURD TYPE CROSS TABULATION OF THE RESPONDENTS
Type Total Cup Student House wife Employed Professional Others Total 21 33 20 13 4 91 pouch 6 12 11 4 2 35 both 7 30 14 13 10 74 34 75 45 30 16 200

Occupation

CHART 5.2.1 DISTRIBUTION SHOWING OCCUPATION * CUP CURD TYPE CROSS TABULATION OF THE RESPONDENTS

35 30 25 21 Respondent 20 15 10 6 5 0 Student

33 30

20 14 12 7 4 4 2 11

13

13 10

House wife Type cup

Employed Type pouch

Professional Type both

Others

INFERENCE: From the above table it is clearly understood that most of the respondents prefer using Cup curd when compared to Pouch curd. Out of the 91 respondents who prefer cup curd 33 of them are house wifes.

33

TABLE 5.2.2 DISTRIBUTION SHOWING OCCUPATION * PACKAGE CROSS TABULATION OF THE RESPONDENTS
Package Occupation non consumers of cup curd Student House wife Employed Professional Others Total 4 7 4 1 0 16 7 13 11 7 2 40 13 37 18 18 12 98 8 16 9 4 2 39 2 2 3 0 0 7 34 75 45 30 16 200 100gm 125gm 200gm 400gm Total

CHART 5.2.2 DISTRIBUTION SHOWING OCCUPATION * PACKAGE CROSS TABULATION OF THE RESPONDENT

Respondent 40 37 35 30 25 20 18 18 16 15 13 13 12 11 10 8 9 7 7 7 4 2 223 5 4 4 2 10 00 0 non 125gm 400 gm consumers of cup curd

Student House wife Employed Professional Others

INFERENCE
It is clearly inferred that out of the 200 respondents 75 of them feel the 125 gm packaging convenient to use. Out of which 37 of them are house wives. Hence there is an influence in occupation over the choice of packaging.

34

TABLE 5.2.3 DISTRIBUTION SHOWING OCCUPATION * PURPOSE CROSS TABULATION OF THE RESPONDENTS
Purpose Occupation Non consumers of cup curd Student House wife Employed Professional Others Total 4 6 4 1 1 16 For taking along with food 21 58 31 26 11 147 3 6 8 2 4 23 Dessert Time pass 6 5 2 1 1 15 34 75 45 30 17 200 Total

CHART 5.2.3 DISTRIBUTION SHOWING OCCUPATION * PURPOSE CROSS TABULATION OF THE RESPONDENTS

70 60 50 Respondent 40 31 30 21 20 10 0 Student House wife Employed Professional Others Time pass 6 6 6 5 8 4 2 1 2 1 1 11 4 1 26 58

Non consumers of cup curd

For taking along with food Dessert

INFERENCE:
From the above table it is clear that most of the respondents prefer taking cup curd along with food. Out of the 147 respondents who prefer taking cup curd along with food majority of them are house wives. Hence there is an influence of occupation over the purpose . 35

TABLE 5.2.4 DISTRIBUTION SHOWING AGE * INFLUENCE BUYING A CUP CURD CROSS TABULATION OF THE RESPONDENTS
Non consumers of cup curd less than 16 16-20 21-24 25-28 29-32 33-36 37-40 41 and above total 2 3 1 2 3 4 0 16 3 6 3 6 10 6 7 41 2 1 3 4 10 11 4 36 0 8 7 5 6 6 6 40 1 1 4 5 5 11 2 29 1 6 4 5 2 3 0 22 0 1 3 0 0 1 0 5 0 2 4 0 0 4 1 11 9 28 29 27 36 46 20 200 1 Brand name 1 Fat content 0

Price

Quality

Availability

Taste

Flavor

total

CHART 5.2.4 DISTRIBUTION SHOWING AGE * INFLUENCE BUYING A CUP CURD CROSS TABULATION OF THE RESPONDENTS

12 11 10 10 10 11

8 8 7 Respondent 6 6 5 4 4 3 2 2 1 1 0 0 non consumers of cup curd Price Brand name quality avaliability taste flavour fat content 0 1 1 0 0 11 11 0 00 1 00 1 0 00 00 1 2 3 3 3 2 3 2 2 2 3 3 2 4 4 4 55 4 5 4 4 6 6 6 66 6 7

less than 16

16-20

21-24

25-28

29-32

33-36

37-40

41 and above

INFERENCE:
From the above table it is clearly inferred that the respondents give first priority to price and the next priority to quality while buying a cup curd. And it is also inferred that most of them who give priority to these both attributes belong to an age group of 33-36. hence there is an influence of the Age factor over the Priority of attributes for buying Cup Curd. 36

TABLE 5.2.5 DISTRIBUTION SHOWING OCCUPATION * FAVORITE CROSS TABULATION OF THE RESPONDENTS
Favorite Brand Occupation Non consumers Amul Aroma Brittania Cavin Hatsun Nestle Nilgiris Vijay of cup curd Student House wife Employed Professional Others Total 4 7 4 1 0 16 2 0 1 0 0 3 4 11 13 5 4 37 1 0 2 1 1 5 3 8 1 1 3 16 8 23 10 13 6 60 0 5 2 2 0 9 12 19 12 7 2 52 0 2 0 0 0 2 34 75 45 30 16 200 Total

CHART 5.2.5 DISTRIBUTION SHOWING OCCUPATION * FAVORITE CROSS TABULATION OF THE RESPONDENTS

25 23

20

19

15 Respondent 13 11 10 10 8 7 6 5 5 4 4 2 1 0 0 Non consumers of cup curd Amul Aroma Brittania Cavin Hatsun Nestle Nilgiris Vijay 0 1 0 0 1 0 4 4 3 2 1 1 1 1 0 0 0 0 0 0 3 2 2 2 2 5 8 7 13 12 12

Student

House wife

Employed

Professional

Others

INFERENCE:
From the above table it is clear that out of all the existing Brands the distribution Penetration of hatsun is very high and that is the reason most of the respondents prefer the Brand Hatsun .Out of the 60 respondents who prefer Hatsun most of them are house wives. Hence it is clearly inferred that there is a close relation between occupation and Favourite brand.

37

TABLE 5.2.6 DISTRIBUTION SHOWING OCCUPATION * INFLUENCE TO BUYING BEHAVIOR OF A BRAND CROSS TABULATION OF THE RESPONDENTS

Student House wife Employed Professional Others Total

Non consumers of cup curd 4 7 4 1 0 16

Price

Brand name

Quality

Availability

Taste

Flavor

Fat content

Total

6 12 9 7 6 40

6 11 7 3 2 29

5 11 9 6 3 34

5 17 7 9 2 40

5 9 4 3 2 23

1 5 2 0 0 8

3 2 3 1 1 10

35 74 45 30 16 200

CHART 5.2.6 DISTRIBUTION SHOWING OCCUPATION * INFLUENCE TO BUYING BEHAVIOR OF A BRAND CROSS TABULATION OF THE RESPONDENTS 18 16 14 12 Respondent 10 8 6 4 2 4 4 3 2 1 3 2 7 6 12 11 9 7 6 6 5 7 6 5 5 4 3 2 2 3 3 2 5 11 9 7 9 9

17

1 11 0 00 0 non consumers Price Brand name quality avaliability taste flavour fat content of cup curd others specify student house wife employed professional

INFERENCE:
It has been already inferred that Hatsun is the most Popular and Favourite brand of cup curd. From the above table it is clear that the reason why the respondents prefer this brand is because of its price and availability. Most of the respondents who rank price and Availability as the major factor for their preference of a particular brand are house wives. Hence there is an influence on occupation over the priority given for chosing a partivular brand.

38

TABLE 5.2.7 DISTRIBUTION SHOWING AGE* SEASON CROSS TABULATION OF THE RESPONDENTS
Season non consumers of cup curd less than 16 16-20 21-24 25-28 29-32 Age 33-36 37-40 41 and above Total 1 2 3 1 2 3 4 0 16 during summer 3 4 12 19 10 13 21 8 90 during winter 0 1 2 0 1 2 3 1 10 during all seasons 1 2 11 9 14 18 18 11 84 Total

5 9 28 29 27 36 46 20 200

CHART 5.2.7 DISTRIBUTION SHOWING AGE* SEASON CROSS TABULATION OF THE RESPONDENTS

25

21 20 19 18 18

15 Responde nts 12 11 10 10 9

14 13 11

5 3 2 1 0 0 less than 16 1

4 3 2 1 16-20 21-24 2 1 0 25-28 29-32 33-36 Age non consumers of cup curd during summer during winter 2 1 3 2

4 3 1 0 37-40 41 and above

during all seasons

INFERENCE:
From the above table it is clear that most of the respondents prefer using cup curd during summer season. Out of the total respondents 21 of them belong to an age group of 37-40 and it is also already inferred that most of the cup curd consumers belong to an age group of 3740. Hence there is an influence of the age factor over the season preferred to have a cup curd. 39

TABLE 5.2.8

DISTRIBUTION SHOWING OCCUPATION * FLAVOR CROSS TABULATION OF THE RESPONDENTS

Non consumers of cup curd 4 7 4 1 0 16

Occupation Student House wife Employed Professional Others Total

Badam 6 12 3 8 6 35

Banana 4 14 9 10 2 39

Mango 6 17 10 7 2 42

Mint 3 11 11 2 3 30

Vanilla 11 14 8 2 3 38

Total 34 75 45 30 16 200

CHART 5.2.8

DISTRIBUTION SHOWING OCCUPATION * FLAVOR CROSS TABULATION OF THE RESPONDENTS

18

17

16 14 14 12 12 Respondent 10 8 7 6 6 4 4 4 3 2 2 1 0 0 non consumers of cup curd student Badam Banana Mango Mint Vanilla 2 4 3 2 3 2 3 6 6 7 10 9 8 10 11 11 11 14

house wife

employed

professional

others

INFERENCE:
From the above table it is clearly inferred that most of the respondents prefer the addition of mango flavor in the cup curs. Out of the 42 respondents which prefer the addition of mango flavour most of them are house wifes and it is already inferred that the majority of cup curd consumers are house wives. Most of the professional people prefer the addition of banana in cup curd. Hence there is an influence of occupation over the preference of addition of flavor in cup curd.

40

TABLE 5.2.9 DISTRIBUTION SHOWING OCCUPATION * SUBSTITUTE CROSS TABULATION OF THE RESPONDENTS
Substitute non Occupation consum ers of cup curd Student house wife Employed professional others Total 4 7 4 1 0 16 15 26 21 5 6 73 ice cream soft drinks and packed drinks 0 2 0 0 2 4 5 6 7 13 3 34 4 15 4 8 2 33 3 9 2 1 1 16 0 2 0 1 0 3 fresh soft packed ice ice ice fresh

juice drinks drinks

cream cream cream juice Total other and and and and fresh packed juice 0 3 3 0 1 7 soft soft drinks drinks drinks 0 5 0 1 0 6 3 0 2 0 1 6 0 0 2 0 0 2 34 75 45 30 16 200

CHART 5.2.9 DISTRIBUTION SHOWING OCCUPATION * SUBSTITUTE CROSS TABULATION OF THE RESPONDENTS
30 26 25 21 20 Respondent 15 15 13 15

10 7 5 5 4 4 1 0 0 of cup curd 0 2 00 2 6 6 7

8 5

5 3 4 4 2 3 2 11 0 2 0 1 0 0 0 33 1 0 0 1 0 0 3 2 0 1 00 2 00

non ice cream soft drinks fresh juice soft drinks consumers and packed drinks student

packed drinks

other

ice cream ice cream ice cream fresh juice and fresh and packed and soft and soft juice drinks drinks drinks professional others

house wife

employed

INFERENCE:
From the above table it is inferred that out of the total respondents taken 73 of them feel that cup curd best substitutes ice cream out of which most of them are house wives. Hence it is inferred that cup curd can be introduced instead of ice creams and most of them prefer it. There is also an influence of occupation over the preference of cup curd as a substitute product as desert. 41

TABLE 5.2.10 DISTRIBUTION SHOWING OCCUPATION * SAKTHI CROSS TABULATION OF THE RESPONDENTS
Sakthi Occupation non consumers of cup curd 4 7 4 1 0 16 Total yes 23 58 36 27 15 159 no 7 10 5 2 1 25 34 75 45 30 16 200

Student House wife Employed Professional Others Total

TABLE 5.2.10 DISTRIBUTION SHOWING OCCUPATION * SAKTHI CROSS TABULATION OF THE RESPONDENTS
Distribution showing Occupation * Sakthi Cross tabulation of the respondents

15

Others

0 1 4 7 0 4

1 27

Professional

2 36

Employed

5 58 10

House wife

23

Student

10

20

30

40 Respondent

50

60

70

80

non consumers of cup curd

yes

no

INFERENCE:
It is clearly inferred that out of 200 respondents 159 of them are aware of Sakthi dairy products. Hence if the company introduces cup curd into the market there will be a good recognition for the brand name and as already inferred most of the cup curd consumers are house wives and most of them are aware of Sakthi diary products.

42

TABLE 5.2.11 DISTRIBUTION SHOWING OCCUPATION * SWITCHING OVER SAKTHI PRODUCTS CROSS TABULATION OF THE RESPONDENTS
Switch Occupation non consumers definitely probably unsure of cup curd Student House wife Employed Professional Others Total 4 7 4 1 0 16 15 39 19 15 8 96 11 21 15 10 4 61 4 6 7 4 2 23 Probably Definitely Not 0 1 0 0 2 3 Not 0 1 0 0 0 1 34 75 45 30 16 200 Total

TABLE 5.2.11 DISTRIBUTION SHOWING OCCUPATION * SWITCHING OVER SAKTHI PRODUCTS CROSS TABULATION OF THE RESPONDENTS
45

40

39

35

30 Respondent 25 21 20 15 15 11 10 7 5 4 4 1 0 non consumers of cup curd definitely probably unsure Probably Not Definitely Not 0 8 6 4 4 10 7 4 2 0 1 2 0 0 0 1 0 0 0 19 15 15

Total Student

Total House wife

Total Employed

Total Professional

Total Others

INFERENCE
From the above table it is clearly inferred that if the brand Sakthi introduces cup curd in the market most of them will surely switch from the brand they prefer to Sakthi. Hence Sakthi cup curd has a great welcome among the cup curd consumers in the coimbatore market.

43

5.3 CHI SQUARE

TEST 5.3.1
NULL HYPOTHESIS: There is no significance difference between Age and purpose of buying cup curd. ALTERNATIVE HYPOTHESIS: There is significance difference between Age and purpose of buying cup curd.

LEVEL OF SIGNIFICANCE: = 0.05 be the level of significance

TEST STATISTIC:
n

Go ! (
i !1

(Oi  Ei ) 2 ) ~ ( n  1) d . f Ei

G o =68.85

TABLE VALUE:
G e = 40.1 (29-1) Degrees of freedom
2

INFERENCE: The Calculated value is greater than tabulated value, so we reject our null hypothesis. Hence it is concluded that, there is significance difference between Age and purpose of buying cup curd.

44

TEST 5.3.2

NULL HYPOTHESIS: There is no significance difference between Age and Switch over to Sakthi products.

ALTERNATIVE HYPOTHESIS:

There is significance difference between Age and switch over to Sakthi products.

LEVEL OF SIGNIFICANCE: = 0.05 be the level of significance

TEST STATISTIC:
n

Go ! (
i !1

(Oi  Ei ) 2 ) ~ ( n  1) d . f Ei

G o =65.75

TABLE VALUE:
G e = 40.8 (36-1) Degrees of freedom
2

INFERENCE: Hence the Calculated value is greater than tabulated value, so we reject our null hypothesis. Hence it is concluded that, there is some significance difference between Age and switching over to Sakthi products.

45

TEST 5.3.3

NULL HYPOTHESIS: There is no significance difference between occupation and buying behavior of cup curd.

ALTERNATIVE HYPOTHESIS: There is significance difference between occupation and buying behavior of cup curd.

LEVEL OF SIGNIFICANCE: = 0.05 be the level of significance

TEST STATISTIC:
Go ! (
i !1 2

G o =17.99

TABLE VALUE:
G e = 21 (13-1) Degrees of freedom
2

INFERENCE: The Calculated value is lesser than tabulated value, so we accept our null hypothesis. Hence it is concluded that, there is no significance difference between occupation and buying behavior of cup curd.

46

)2

( n  1) d . f

TEST-5.3.4

NULL HYPOTHESIS: There is no significance difference between occupation and season to be using cup curd. ALTERNATIVE HYPOTHESIS: There is some significance difference between occupation and season to be using cup curd.

LEVEL OF SIGNIFICANCE: = 0.05 be the level of significance

TEST STATISTIC:
n

Go ! (
i !1

(Oi  Ei ) 2 ) ~ ( n  1) d . f Ei

G o =29.69

TABLE VALUE:
G e = 31.4 (21-1) Degrees of freedom
2

INFERENCE: The Calculated value is lesser than tabulated value, so we accept our null hypothesis. Hence it is concluded that, there is no significance difference between occupation and season to be using cup curd.

CONCLUSION
Hence from the CHI-SQUARE TESTS it is concluded that there is a significant influence of occupation over the consumption behavior of the cup curd but there is no significant difference age over the consumption behavior of the cup curd.

47

5.4 TABLE SHOWING THE DISTRIBUTION PENETRATION OF EXISTING BRANDS OF CUP CURD This table shows which brand has the maximum distribution penetration of cup curd in coimbatore city. An survey was taken in 25 A class department stores and B class departmental stores around the city. The brands of cup curd available in the stores were observed based on which the following table has been formulated.

48

No of A class outlets Spencers daily, tata bad Nilgiris departmental stores, avinashi road More departmental stores, Ganapathy Reliance fresh departmental stores,Sai Baba colony Beena departmental stores, Velandipalayam Mallikai departmental stores, R.S.Puram Bhukari Departmental Stores, Koundampalayam Aruna departmental stores, Railway Station Lakshmi stores, Periyanaikan palayam Kumudam departmental stores, Peelamedu Bharathi departmental stores,Colony Alwin joseph departmental stores, Podanoor Kamaraj Departmental Stores, Singanaloor T.V.M Stores, Thadagam C.A Stores , TK Market Chandra Departmental stores, Gandipuram Raja Stores, Lawly Road

Aroma

Britannia

Cavin Kare

Hatsun 1

Nilgiris

1 1 1 1

49

Sri Ganesh Store, R.S.Puram Velmurugan Stores, Townhall Marapa Gounder Mallikai Kadai, Selvapuram Ramya Stores, Saibaba Colony Kumaran Stores, Thudialyur Krishna Departmental Sores, Olumpus Ganesha Departmental Stores, Vadakovai Noyal stores, Ukadam Total Percentage

1 1 1 1

1 6 24% 1 4% 5 20% 13 52% 8 32%

50

5.4 CHART SHOWING THE DISTRIBUTION PENETRATION OF EXISTING BRANDS OF CUP CURD 14

52%
12 10 8 6 4 2 0
Aroma Britannia Cavin Kare Hatsun Nilgiris

32% 24%
20%

4%

Spencers aily, tata bad Nilgiris departmental stores, avinashi road More departmental stores, Ganapathy Reliance fresh departmental stores,Sai Baba colony Beena departmental stores, Velandipalayam Mallikai departmental stores, R.S.Puram Bhukari Departmental Stores, Koundampalayam Aruna departmental stores, Railway Station Lakshmi stores, Periyanaikan palayam Kumudam departmental stores, Peelamedu Bharathi departmental stores,Colony Alwin joseph departmental stores, Podanoor Kamaraj Departmental Stores, Singanaloor T.V.M Stores, Thadagam C.A Stores , TK Market Chandra Departmental stores, Gandipuram Raja Stores, Lawly Road Sri Ganesh Store, R.S.Puram Velmurugan Stores, Townhall Marapa Gounder Mallikai Kadai, Selvapuram Ramya Stores, Saibaba Colony Kumaran Stores, Thudialyur Krishna Departmental Sores, Olumpus Ganesha Departmental Stores, Vadakovai Noyal stores, Ukadam Total Percentage

INFERENCE:
From the above table it is clearly understood that the distribution penetration of the brand HATSUN is very high compared to the other brands. The major factor being that it is made available in all the stores. And also out of the 200 respondents 60 of them choose Hatsun as their favourite brand. Hence HATSUN proves to be an strong competitor for Sakthi.

51

5.5 Weighted Average Mean: Table 5.5.1

TABLE SHOWING THE AVERAGE CONSUMPTION OF CUP CURD IN A WEEK Consumption Mid Value 62.5 375 937.5 1562.5 2187.5 No.Of.Respondents Percentage(Weight) Total Consumption 500 20813 29063 5469 4375 60220

0-125 125-625 625-1250 1250-1875 1875-2500

16 111 62 7 4

8 55.5 31 3.5 2

Average Consumption= 60220/200 = 301.10 gms

ESTIMATION OF MARKET POTENTIAL FOR CUP CURDS Total Population Of High Income Families in Coimbatore City = 53000 families

Population of high income Population who consume cup curd

= 37100 families (30% of 53000)

Total consumption of Cup Curd by High Income Level group in Coimbatore

= 37100*301.10 gms = 15.95 tonnes/week

52

DEMAND SUPPLY GAP Supply of Aroma cup curd in coimbatore city =1,12,500 gms

Supply of Britannia cup curd in coimbatore city =15625 gms

Supply of Cavin Kare cup curd in coimbatore city =105000 gms

Supply of Hatsun cup curd in coimbatore city Supply of Nilgirs cup curd in coimbatore city =1,25,500 gms -------------------------Total supply of cup curd in the city in a day = 1033625 gms/week ---------------------------=675000 gms

The demand for cup curd is 11170810 Gms/Day and the supply is 1595830 Gms/Day. Hence it is clearly inferred that the Demand is more then Supply.

Supply Demand Gap = Demand Supply = 15.95 Tonnes/Week - 10.33 Tonnes/Week = 5.62 Tonnes/Week .INFERENCE: Hence it is clearly inferred that the demand is more than supply. Hence Sakthi can fill in this Supply Demand Gap by entering into the market.

53

CHAPTER -6

FINDINGS,SUGGESTIONS AND CONCLUSIONS

54

6.1 FINDINGS:
 The total market potential for other brands of cup curd among high income group families is 15.59 Tonnes/Week  The demand is 10.33 Tonnes/Week. Hence the Demand Supply gap is 5.62 Tonnes/Week.

 Majority of the Respondents who use Cup Curd are Female  Majority of the Respondents respondents use a quantum of 125ml-625ml of cup curd in a week.  Majority of the Respondents prefer 125 ml package convenient for usage.  Majority of the respondents use cup curd for the purpose of taking it along with food.  Majority of the Respondents give first preference to the attribute, Price while purchasing Cup Curd  Majority of the Respondents who use cup curd belong to the age group of 36- 40 years.

 Majority of the respondents who use cup curd are House Wife.  Majority of the respondents who use cup curd belong to an higher income group of 30000-45000 per month.  Quality, Price and Brand name are the factors that consumer consider most important while purchasing Cup curd.

 Price , Availability and Brand name are the factors that consumer consider most important while purchasing a particular Brand of Cup curd.

 Among the Existing brands in Cup Curd Hatsun and Nilgiris are preferred more by the consumers.

 Majority of the respondents prefer to use cup curd during the summer season.

55

 Majority of the Respondents Feel that Cup Curd best substitutes Ice Creams. Respondents prefer using Cup Curd as a dessert also.

 Majority of the respondents will Definitely move to The Brand Sakthi Cup Curd if introduced in the Market.

 In case of addition of flavor in cup curd most of the respondents prefer mango , vanilla and banana.

 The sales of cup curd is found to be maximum in summer.  Majority of the respondents are aware of Sakthi food Products  Majority of the respondents will Definitely move to The Brand Sakthi Cup Curd if introduced in the Market

56

6.2 SUGGESTIONS AND RECOMMENDATIONS:

 Since the Demand for Cup curd is more than Supply, this is the right time for Sakthi to enter into the Cup Curd Market.

 The company can introduce low fat curd because most of the people like to have slim curd.

 The company can add flavors like mango, vanilla etc., because most of the consumers prefer these flavors.

 The company can introduce a packaging of 125 gm more because most of the consumers feel that is more convenient to use.

 The distribution penetration of Hatsun is found to be very Strong when compared to other brands and the main reason for that is Hatsun is easily available in all stores. Hence Sakthi can also follow a similar Distribution penetration by making its Brand availability more.

 Since the consumers give more importance to price, availability and quality more concentration can be given on those aspects while introducing cup curd in the market.

 Most of the consumers feel that Cup Curd best substitutes for ice cream. Hence the company can make its brand of Cup curd available in Ice Cream Parlours also.

 Since most of the consumers preffer taking Cup Curd during Summer season and the demand is more during that season, the supply can be increased during that time.

57

 Availability is one of the important factors in the consumers preference to a particular brand of Cup Curd. Hence the Company can make its Cup Curd available in all the Retail Outlets possible in Coimbatore city.

6.3 CONCLUSIONS:
 The average consumption of Cup Curd among high income group families is 125gm-625gm in a week.  Majority of the consumers use cup curd for the purpose of taking it along with food and Cup Curd best substitutes Ice Cream as a dessert. Most of the Consumers prefer taking Cup Curd instead of Ice Cream. .  The Major competitors of Sakthi are Hatsun and Nilgiris in the Cup Curd market and the Distribution penetration of Hatsun is inferred to be more than the other Existing brands.  Quality, Price and Brand name are the factors that consumer consider most important while purchasing Cup curd.

 Price , Availability and Brand name are the factors that consumer consider most important while purchasing a particular Brand of Cup curd.  Majority of the consumers are aware of Sakthi food Products already existing in the market.  The common feedback of the consumers was that they will surely switch over to the Sakthi Cup curd if it is introduced in the Market.

From the above conclusion it is clear that, most of the cup curd consumers are aware of the already existing dairy products of the Sakthi brand. Hence they have a high recognition for the brand. Increasing the Availability, minimizing the Price and Improving the Quality of the Cup Curd they launch will surely help the company to succeed as one of the leading Competitors in the Cup Curd industry.

58

APPENDICES

59

QUESTIONNAIRE POTENTIAL MARKET STUDY ON CUP CURD IN COIMBATORE CITY

1. Name: 2. Age: Less than 16 29-32 3. Gender: 4. Occupation: Male 33-36 17-20 37-40 21-24 25-28

41 & Above

Female

Student House Wife Employed Self Employed Professional Others Specify less than 15000 15000-30000 45000 & Above 30000-45000

5. Income:

6. Number of Members in your family Two Three Four Five Others Specify 7. Why do people buy cup curd while it can be easily made at home?

8. Which among the following package of curd do you prefer to buy ? Cup Pouch Both

60

9. Do you Buy Cup Curd? Yes No If No, Terminate If Yes, Proceed 10. For what purpose do you buy cup curd? For taking along with food Dessert Others Specify -

Time pass

11. How often do you buy Cup Curd? Daily weekly Fortnightly Monthly

Occasionally

12. Name the brands of Cup Curd that comes to your mind? 1 2 3 4 5 -

13. How do you rank the following attributes while buying a cup curd? Rank them in the order of your preference (1 for most preferred and so on) a) Price b) Brand Name c) Quality d) Availability e) Taste f) Flavour g) Fat Content
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14. Name your favorite brand of Cup Curd?

15. How do you rank the following attributes with reference to your favourite brand? Rank them in the order of your preference (1 for most preferred and so on) a) Price b) Brand Name c) Quality d) Availability e) Taste f) Flavour g) Fat Content -

16. What is your quantum of purchase in a week? 125gm-625gm 625gm-1250ml 1250gm 1875 gm 1875 gm- 2500 gm Others Specify 17. Which package of cup curd do you feel convenient to use? 100 gm 125 gm 200 gm 400 gm Other Specify 18. What percentage of fat content would you prefer in cup curd? 1.7% 3.0% 3.5% 4.5% Others Specify 19.In which season do you like to use Cup Curd? During Summer During Winter During all Seasons

20. Have you Tasted Flavored Yoghurt? Yes No

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21. If yes, please mention the flavors tasted 1 2 3 -

22. In case of addition of a flavor in cup curd, which of the following flavors would you prefer? Rank them in the order of your preference (1 for most preferred and so on) a) Badam b) Banana c) Mango d) Mint e) Vanilla -

23.Which among the following does Cup Curd best substitute for? Ice Cream Fresh Juice Soft Drinks Packed Drinks O Others Specify 24.Have you heard about Sakthi Diary Products? Yes No 25. If yes, Please tick the dairy products you know? Milk Ghee Curd Butter Flavored Milk Others Specify 26. If Sakthi introduces Cup Curd in the market ,would you prefer to switch over? Definitely Probably Unsure Probably Not Definitely Not

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27.Any Suggestions related to the Quality , Price and Innovations for the new Brand?

28. When we mention the Brand Sakthi Dairy Product, What is that feature which comes to your mind?

29. If you are already a Consumer of Sakthi Dairy Product , Mention the unique nature of Sakthi ?

Thank You for Your Valuable Response

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BIBLIOGRAPHY

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BIBLIOGRAPHY
 P.K.Viswanathan, Business statistics- An Applied Orientation, Pearson Education , Delhi

 Elko Huizing, Applied statistics with SPSS, SAGE Pulications, Delhi  Uma Sekaran, Research Methods For Business- Askill Building Approach, Wiley-India Pvt.Ltd, Fourth Edition  Donald.R.Cooper And Pamila.S.Schindler,Buissiness Research Methods, The Mcgraw-Hill Companies,9th Edition

REFERENCES
 Dr. Subramaniam , Head Of The Department, PSG College Of Arts And Science.  Dr.VijayaRagavan, Professor, Statistics Department, Bharathiar University

JOURNAL
 Times Food Processing Journal, May-June 2010  Ministry Of Food Processing Industries, Anuual Report 2008-2009

WEBSITES AND WEBPAGES

 www.thinkmanagers.com  www.wikwpedia.com/abt foods limited  www.indiandairyindustry.com

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