Consumer satisfaction level towards CYCLE PURE AGARBATTIS

P G Department of Management Studies & Research centre, PESITM, Shivamogga Page 1

A Project Report on “A study on consumer satisfaction level towards Cycle

Pure Agarbattis in Mysore Submitted By

KARTHIKKUMAR.B.A 4PM10MBA27

Submitted in partial fulfillment of the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

TO

Visvesvaraya Technological University, Belgaum

Under the Guidance of

Internal Guide External Guide

Mr.Chandrashekar.P Mr. Jayakumar.D

Senior Lecturer Marketing Executive PG Departmant of Management studies N.Ranga Rao & Sons, Mysore & Reseach Centre

.

P.G. Department of Management Studies & Research Centre PES INSTITUTE OF TECHNOLOGY AND MANAGEMENT

NH – 206, Sagar Road, Shivamogga - 577 204

April 2012


DECLARATION

I, the undersigned, hereby declare that the Project Report entitled “A Study on Consumer

satisfaction level towards Cycle Pure agarbattis” (A study Conducted on behalf of N.Ranga Rao

& sons, Mysore, Karnataka State) has been prepared by me under the supervision and guidance

of Mr.Chandrushekar.P Senior Lecture, P.G Department of Management Studies & Research

centre, PES Institute of Technology and Management, Shivamogga. and now being submitted to

Visvesvaraya Technological University, Belgaum in partial fulfillment of the

University regulations for the award of the degree of MBA.

I further declare that this report is based on the original project study undertaken by me

and has not formed a basis for the award of any other Degree/Diploma of V.T.U or any other

University,in India or abroad.

Place: Shivamogga Signature……………......

Date: Karthik kumar.B.A

USN: 4PM10MBA27


ACKNOWLEDGEMENT

Me, the undersigned, 4th

Semester student of MBA , P G Department of Management

Studies & Research centre, PES Institute of Technology & Management ,Shivamogga

is glad to express my deep sense of gratitude to all the persons connected with the

successful completion of this project work. This report is obviously not the result of

my work alone; many persons have directly or indirectly involved, without whom this

work would not have been accomplished.

I am greatful to Mr.Prakash.N and Mr.Ramanand.M.V for giving me an

opportunity to do my training and project work in N.Ranga Rao & Sons. I am

thankful to my external guide Mr.Jayakumar.D and Miss.Sowmya.R for his

guidance and cooperation. I am grateful to Dr. R. Nagaraja, Professor & H.O.D, PG

Department of Mangement studies & Research centre, PESITM, Shivamogga. for his

guidance and continous untiring support. I would like to express my sincere gratitutde

to my research guide Mr. Chandrashekar.P Senior Lecturer, PG Department of

Mangement studies & Research centre, PESITM, Shivamogga. For his constant

encouragement and guidance in the course of the research investigation and I am

thankful to Mr. Rakesh D’Souza, and Mr.Arvind Mallik.D.M Lecturer, P.G

Department of Management Studies & Research centre, PESITM Shivamogga. for

his guidance and continous untiring support during the course of this project work.

I am thankful to Dr. Vishwanath. P. Baligar, Principal, PESITM for all the support.

I am also thankful to all the teaching and non – teaching staff of PGDMSRC,

PESITM and the student friends for their support and cooperation.

Finally, I acknowledge with thanks the cooperation and support extended to us by the

respondents to this project work.

Karthikkumar.B.A

( 4PM10MBA27 )



EXECUTIVE SUMMARY

The current value of agarbatti industry is placed at Rs 1800 crores and the rate

of growth is 20% on a year on year basis. India produces 1 million tons of agarbatti

sticks annually. There is potential for the market to increase by another 30 crores by

mechanization of the splint making process and increasing the production. Women

producers in these regions have been restricted to primary processing of bamboo

culms, i.e. producing slivers (incense stick core), which is a very low value activity

(about 2% of the final value). This can give significantly higher returns to the family

engaged in these businesses and possibility of other business opens up with the

increase in per capita income.

The Part-A of the report contains an overview about the Industry and the

company profile which includes the product mix, work flow, competitor‟s information

and future prospects of the company. It also explains the Mckinsy‟s 7s frame work

with special reference to organization under study, the individual departmental study

and SWOT analysis of the organization as a whole.

The Part-B of the report gives detail about the project undertaken. The project

titled “Consumer Satisfaction Level towards Cycle Pure Agarbattis” (A study

conducted on behalf of N. Ranga Rao & Sons, Mysore). The objectives of the study

were to know Consumer Satisfaction Level. To understand the needs and wants of

consumers. To know the attributes which are influenced to consumers. To know

opinion towards Cycle Pure Agarbattis. The primary data is collected from consumers

through questionnaire. For survey the instrument used was Questionnaire,

convenience sampling method was used to survey the consumers.

The study reveals that Cycle Pure Agarbattis are the market leader in Mysore.

Most of the consumers are happy with the product. The quality and fragrance are

main attributes which will attract the consumers. Only few consumers aware about

premium agarbattis therefore advertisement or awareness is required on premium

agarbattis. Most selling brand of Cycle Pure Agarbattis is 3 in 1 brand.


CONTENTS

Sl. No. Particulars Page No

PART-A

Executive Summary

1.0 Introduction 1-8

1.1 General Introduction 1

1.2 Industrial Background of the Study 1

1.3 Origin of the Industry 2

1.4 Growth of the Industry 4

1.5 Present status of the Industry 5

1.6 Leading Players 5

1.7 Future Prospectus of the Industry 7

2.0 Profile of the Organization(With reference to Mckinsey’s 7S

model)

9-23

2.1 Background and Inception of the company 9

2.2 Nature of the business carried 13

2.3 Vision, Mission and Quality policy 13

2.4 Products / Services Profiles 15

2.5 Area of operation 17

2.6 Ownership pattern 17

2.7 Competitors information 17

2.8 Infrastructural facilities 19

2.9 Achievements / Award 19

2.10 Workflow Model 21

2.11 Future Growth 23

3 Mckensey’s 7S frame work 24-27

4 SWOT Analysis 28-29

5 Learning Experience 29

PART- B

1 General Introduction 32

2.1 Research method 34

2.2 Statement of the Problem 35

2.3 Need for the study 35

2.4 Objectives of the Study 36

2.5 Scope of the study 36

2.6 Operational Definition And Concepts 37

2.7 Limitations of the study 39

3 Methodology of Data Collection 40-44

3.1 Sources of Data 40

3.2 Sampling plan 41

3.3 Field Work 42

3.4 Tools for Data Collection 42

4 Analysis and Interpretation 45-64

5 Findings, Suggestions and Conclusion 65-67

Bibliography

Annexure


LIST OF TABLES

Table

No

Name of the Table Page No

1 Leading Players 5-7

2 Products & Service profile 15-17

3 SWOT ANALYSIS 28-29

4 Data Analysis Procedure 43

5 Gender of the Respondents 45

6 Age group of the Respondents 46

7 Occupation of the Respondents 47

8 Educational qualification of the Respondents 48

9 Annual income of the Respondents 49

10 Festival celebrated by the Respondents 50

11 Purpose of usage of agarbattis by the Respondents 51

12 The total amount spent on agarbatti in a month by Respondents 52

13 The attributes of Respondents is looking in agarbattis 53

14 The agarbatti product Respondents are used daily 54

15 The reason for using the above product by Respondents 55

16 The purchase point of agarbatti product by Respondents 56

17 The usage of Cycle Pure agarbatti by Respondents 57

18 From how many years Respondents are using Cycle Pure

agarbattis

58

19 Ranking given by the Respondents for different attributes of

Cycle Pure Agarbattis

59

20 The product of Cycle Pure agarbattis Respondents are using 60

21 The sources helped to Respondents to know about Cycle Pure

agarbattis

61

22 The overall grade for Cycle Pure agarbatti by Respondents 62

23 The awareness about premium agarbattis by Respondents 63

24 The attributes is looking in premium agarbattis by Respondents 64


LIST OF GRAPHS

GRAPH

No

Name of the Graph Page No

1 Gender of the Respondents 45

2 Age group of the Respondents 46

3 Occupation of the Respondents 47

4 Educational qualification of the Respondents 48

5 Annual income of the Respondents 49

6 Festival celebrated by the Respondents 50

7 Purpose of usage of agarbattis by the Respondents 51

8 The total amount spent on agarbatti in a month by

Respondents

52

9 The attributes of Respondents is looking in agarbattis 53

10 The agarbatti product Respondents are used daily 54

11 The reason for using the above product by Respondents 55

12 The purchase point of agarbatti product by Respondents 56

13 The usage of Cycle Pure agarbatti by Respondents 57

14 From how many years Respondents are using Cycle Pure

agarbattis

58

15 Ranking given by the Respondents for different attributes

of Cycle Pure Agarbattis

59

16 The product of Cycle Pure agarbattis Respondents are

using

60

17 The sources helped to Respondents to know about Cycle

Pure agarbattis

61

18 The overall grade for Cycle Pure agarbatti by

Respondents

62

19 The awareness about premium agarbattis by Respondents 63

20 The attributes is looking in premium agarbattis by

Respondents

64


LIST OF FIGURES

FIGURE

No

Name of the Figure Page No

1 Work flow model (end to end), Production process 21

2 Cluster actors 22

3 McKinsey 7-S Framework 24

4 Organization Chart 25


PART-A


CHAPTER: 1

1. INDUSTRY PROFILE

1.1 General Introduction:

Agarbattis (incense sticks) form part and parcel of the traditional Hindu

practice of offering prayers in temples and other places of worship, In modern days,

perfumed sticks are also used in houses and in other public places as air-fresheners

and/or mosquito repellents. The demand for agarbatti is increasing both in the

domestic and export markets because of the improvement in quality and increase in

the types of products. India is the largest producer of agarbattis in the world.

1.2 Industrial background of the study:

Industrial development in India has occurred mostly to meet increasing urban

consumer needs and to support the growth of the vital agricultural sector. The

traditional home based enterprises have also been simultaneously experiencing steady

growth, primarily because of the influence of market forces and also because of

multiplier effects. Cottage industries have slowly changed to rural cottage or semi-

urban micro-enterprises with limited assistance from government. Agarbatti making is

one such industry. It has responded well to increased demand for its products both in

rural and urban areas, mainly because of the continued availability of cheap labor

force dominated by women and children. At the same time, greater advertising costs

and quality improvement have pushed up the prices.

Agarbatti industry is gradually developing a wider base. Of the total domestic

sales of Rs 7.1 billion (approx. US$ 198 million) in 2009/10, South India accounted

for 35%, West 30%, North 18% and East 17%. Almost two-thirds of consumption

took place in rural areas (61.23%). The poor (low-income group) purchases about

46% of the value of the agarbatti compared with the higher income customers who

buy 54%. However, categorizing purchases into five income classes shows an inverse

relationship between income and the purchase of agarbatti. Existence of negative

income and price elasticity may be in play. The factors influencing purchasing

decisions are: the quality, fragrance, brand name preference and cost.


Rising demand for the products and earning of hard currency has led the

agarbatti industry to orient itself increasingly towards exports. Total exports have

increased by 266%, from Rs 1.5 billion (approx. US$ 42 million) in 2008/09 to Rs 4

billion (approx. US$ ll2 million) in 2009-10. More than 800 registered and 3000

unregistered units currently exist in the country and only up to 10% of these, mostly

in Karnataka, are engaged in export trade.

1.3 Origin of the industry:

The origin of using aromatic substances can be traced back to the Stone Age

or probably even before that. Let‟s take a look at how incense has influenced cultures

across the world!

India is often considered the home of incense; it is eulogized in the Vedas,

back in the era 5000 B.C. The traditional well-known scents of ancient India were

Jasmine, Rose, Sandalwood, Champa and Cedar & Musk. Ancient Sanskrit texts

contain many beautiful descriptions of festive occasions when incense was burned in

the homes and streets. Fragrant waters were sprayed on the thorough fares and scented

flower garlands adorned and decorated buildings and entrance ways. In fact, flowers,

which have deep spiritual connotations in Hindu philosophy, are among the chief

sources of incense in India. Along with flowers; incense sticks and dhoop are a part of

the 16 essential offerings in the Hindu ritual – the others being betel leaf, betel nut,

camphor, cardamom, cloth, clove, diya (lamp), grain, naivedhyam (a mix of nine

offerings), sandalwood paste, sweets and water.

Indeed, fragrance has played a dominant role in Hindu religious rituals since

Vedic times and is intimately linked to the havan or yagna i.e. the sacrificial fire.

Offerings or oblations consisting of aromatic and medicinal herbs, resins, barks,

leaves, exudates (gums which flow from trees) twigs, roots & seeds along with

foodstuffs and ghee were offered to Agni, the god of fire who, according to

mythology, carried them to the celestials. This was done to appease the gods for

ushering in prosperity or avoiding disaster. The emanating fumes with their unique

aromatic properties purified the environment and had a vitalizing and invigorating

effect on individuals, besides acting as a natural disinfectant. They were said to ward

off evil spirits, alleviate anxiety and create an aura of tranquility and help in


experiencing the divine presence. In fact fragrance is considered as a divine attribute

and is said to manifest the presence of gods as well as gratify them.

It is this dhoopa aradhana which has transformed over the ages, for

convenience & practical reasons, into the present day agarbattis. Agarbattis, also

known as joss sticks, incense sticks or prayer sticks, are today used in all temples and

domestic offerings by millions all over the world.

Burning of incense has been an integral part of all ancient civilizations.

Fortunes were spent on incense and trade routes established with incense in mind.

Among the most important ancient fragrances were Frankincense (Olibanum) and

Myrrh, but the resins of various other plants have also been collected and traded since

3000 B.C.

Gums and resins of aromatic trees were imported from Somalia in the Arabian

Peninsula to ancient Egypt to be used in religious ceremonies. The tomb

of Tutankhamun in the Valley of the Kings at Thebes was found to have huge

quantities of perfumes, oils and incense surrounding his mummy. For Egyptians,

incense held a direct connection with the dead. Each type of incense had a specific

purpose and effect.

The Babylonians used incense extensively while offering prayers or divining

oracles. It was imported into Israel in the 5th

century B.C. where special gold altars

were erected for it in the ancient Temple of Israel. According to one theory, it spread

from there to Greece, Rome and India.

The sophisticated Greeks appreciated aromatic sources such as the turpentine

tree, myrrh, frankincense and cinnamon. Enormous amounts of money were spent on

these exotic imports. These were burnt as oblation & for protection. More precious

perfumes, incenses and spices came as imports through Arabia along well established

incense routes, to be eagerly purchased by Mediterranean merchants to satisfy the

increasing demands of the European markets.

In Rome it was an important element in public and private sacrifices,

especially in the worship of the emperor. The Old and New Testament refer to the


extremely powerful Resin Drop Incense, whose recipes were given through Voice or

Vision e. g. Moses was given recipes by the Creator during his encounters on the

Mount. It is well known that when Jesus was born, frankincense and myrrh were

presented to him along with gold by the three wise men of the East. Today Roman

Catholic as well as Protestant and the Eastern Orthodox Churches use incense at mass

and in many other rituals.

Native American Indians offered tobacco, sage, junipers, cedars and

mugworts in their rituals, as documented from their first encounter with Europeans in

the 15th

and early 16th

centuries. Descendants of the Mayas & Aztecs offer copal, an

aromatic resin even today in their worship.

1.4 Growth of the industry:

The availability of incense sticks in the present form, to a large extent, has

to be ascribed to the enterprising nature of the Hindu community, mainly from the

south India. It was they, who started making use of bamboo stick as the core, and a

gummy wood powder as the binding medium to apply the mass to these sticks by

hand-rolling process. They had an intimate knowledge of perfumery materials like

Civet, Musk, Saffron, Barneol, Cloves, Cassia, Agar wood, Sandalwood, Gum,

Benzoine, Halmaddi Etc., Dry flowers and roots like Rose and Vettivert, leaves like

Davana, Patchouli etc. besides attars of Rose, Sandal, Khus and Hinawhich they used

to produce excellent incense sticks of reputed qualities. One factor which has

remained constant where this industry is concerned has been the fact that each

individual manufactures considered his product to be unique and different. Each

incense stick has always been hand-rolled by the individual without in anyway using

any mechanical device in its manufacture. But today some companies are using

machinery for manufacturing of incense sticks.

India’s exports of Agarbattis to major countries:-

India‟s exports of agarbattis in 2009-10, by 21.68 per cent when the same

reached a level of Rs. 247.42 crore over Rs. 203.33 crore in the previous year.

Country-wise export trends reveal that USA continues to be the largest market. There

was a phenomenal growth of 39.54% to this market during the period-exports having

touched a figure of Rs. 35.57 crore as against Rs. 25.49 crore.


1.5 Present status of the industry:

The State of Karnataka and especially the Mysore region is recognized as a

pioneer in the activity of agarbatti manufacturing. The region has a natural reserve of

forest products especially sandalwood, which provide for the base material used in

production. Due to the simple manufacturing process and a huge market potential,

there are a large number of producers existing in the market. This has led to a

scattering of this activity throughout India. At present, there are a number of small

manufacturers, who produce cheap and low quality agarbatti and this has created

marketing problems for quality producers. Apart from the local competitors, some

MNCs too have entered the market. Besides, in view of WTO‟s free-trade regime,

doors shall soon open for international competitors like China, Pakistan, Sri Lanka

and Thailand etc... to flood the shelves.

1.6 Leading Players

Table: 1

Company Name Brands Variations Remarks

Hari Darshan

Sevaashram Pvt,

Ltd. Delhi.

Hari Darshan Export quality

Shrinivas

Sugandhlaya,

Bangalore

Nag Champa

Agarbatti

Aastha

(Available in15

Gms, 40Gms,

100Gms,

250Gms, 500Gms,

1 kg, and 8 Sticks

Square packing)

Long incense

Caters mostly the

domestic market

Sandesh Agarbatti

Co.

Gopala incense

Master gold

incense

8 Sticks Square

Packing

20 Sticks

Hexagonal

Packing

Caters to the

domestic markets

with nominal

exports


Shree Balaji

Indistries. Orissa

Bharat Darshan

incense,

Spritual Guide,

Precious Chandan,

Jasmine,

Indian Spice &

Rose Pouch series,

Sugandha Incense,

Sugandha Shringar,

Among the top 10

and most popular

in eastern regions

NRR Group.

Mysore

Cycle Brand, Cycle

dhoop, Flute

Brand, Lia Brand,

Naivedya, Rhythm

dhoop, Wood,

Parampara, Yagna,

Eco,

Mecca Madina

10 per cent of

turnover from

exports. Total

turnover is Rs 240

crore

ITC Ltd (Agarbatti

Division)

Mangaldeep ,

Spriha

Ashageet, Yantra

and Madhur 100

are sub-brands of

Mangaldeep

Markets Khadi

Bhandars in the

country .Planning

to expand its

existing number

of retailers from

25,000 to two

million across the

country within a

Year. At present,

the company‟s

25,000 retailers

cater to

Maharashtra,

Tamil Nadu, and

Bangalore.


Abyssinia Impex,

Mumbai

Premium segment :

Ratnamala, Decent,

Empress, Cherish ,

Super Sandal,

Relax,

Fascinating India,

Surprise,

Paramhans,

Success, Amber

Flora

Herbal segment

Eucalyptus, Balm

mint, Patchouli,

Lemongrass, Pine,

Citronella, Juniper

Mostly exported.

Ramdev Food

Products

Pvt. Ltd. ,

Ahmadabad

Vedam Incense

Stick

Archanam, Mogra,

Yagyam, Havan,

Yogam, Dhoop,

Poojanam Saffron,

Dhyanam Sandal,

Chintanam,

Kasturi,

Shantam, Rose,

Arpanam,

Camphor, and

Anusthanam

Nag Champa

Regional player

1.7 Future prospects of the industry:

Customs in incense manufacture have changed little over the centuries except

in the range of fragrances offered. In ancient times, only naturally fragrant resins or

woods like sandalwood and patchouli were used for incense. Modern fragrance

production allows virtually any scent to be duplicated, and fragrances are available


now that couldn‟t be offered before. Examples include green tea, candy cane,

blueberry, pumpkin pie, and gingerbread incense.

The custom of use of incense is also likely to change in the future and in

Western culture. In India, two or three sticks of incense may be burned every day in a

typical home, while, in the United States, users of incense may only burn one stick a

week. Incense-makers hope the variety, effectiveness, and low cost of incense sticks

will make them more popular than air fresheners and room deodorizers made with

artificial perfumes. Also, the popularity of meditation and aromatherapy have spurred

incense sales among clients who want their rare moments of quiet and relaxation to be

healing and beautifully scented.

It is true that a lot of work has to be done to save the industry. This industry

has the potential to retain its low and high-end markets and huge employment base

with the help of proper planning. With the eliminating of trade barriers, Global

markets open up an ocean of opportunities for the industry, especially considering the

fact that apart from a few Asian countries, the rest of the world is ignorant about the

product. Even now about 20% of the total production is exported.

There is a lack of manpower around the world to produce such a labor-

oriented product. „Eco-friendly‟, „User-friendly‟, „Handmade‟, „Therapeutic‟, these

words can serve as the banners to attract the western markets. The name of Mysore

itself works as a brand to catch the world‟s attention as a pioneer in agarbatti

manufacturing and also as a tourist center. Inputs in bio-technology, tissue culture and

other R&D can ensure a positive growth for the industry and create high-value added

products that are required for export markets, thus helping thousands of laborers to

attain a better socio-economic status.


CHAPTER: 2

2. COMPANY PROFILE

2.1 Background and inception of the company:

Sri. N. Ranga Rao faced many adversities right from a tender age, losing his

father at the age of six to severe health problems, resulting in setbacks in his

professional life. But Sri. Ranga was a man of courage, clarity, discipline and

independent attitude; life's shortcomings did not stop him from achieving his vision.

Sri. Ranga Rao is an excellent example of hard work and sustained interest. As

a boy of eleven, he began selling biscuits in his school. Another boy also began doing

the same and became a competitor. Immediately he gave peppermint free with a

biscuit and his rival vanished from the scene.

As years rolled by, he worked for a coffee estate in different cities. When he

was in Kodagu, he would visit Mysore city; he loved the city and thought of starting a

business in Mysore. Thus came about the birth of "Mysore Products and General

Trading Company", in 1948 which produced soap nut powder, turmeric powder and

agarbattis. Along with the birth of a company was the birth of a tradition - a family

enterprise offering the highest quality and purity in all their products.

He chooses to focus on the simple & ubiquitous agarbatti, and embarked on a

journey that established the nondescript agarbatti on the commercial map of India.

His belief “Quality backed by values will pay” and his belief took him far

and long - the small cottage industry transformed into a global entity. N. Ranga Rao

& Sons is now the largest incense manufacturer which has created 5 popular brands -

Cycle, Lia, Flute, and Rhythm & Woods. Cycle Agarbattis is the market leader in

India and is exported to over 60 countries.

The company, which started with incense, has grown to provide customers a

complete range of solutions in air care - from deodorants and room fresheners to

aroma oils. The growth has been crafted by total endurance, perseverance and

commitment to rigid quality standards, unceasing research, innovative packaging, and

product innovation backed by his motto


"Total customer satisfaction with value for money".

The founder's guiding principles of integrity, quality, customer

responsiveness, financial discipline and importantly, honoring commitments and a

genuine concern for social causes is consistently reflected in NRRS values. Today the

brand has support & patronage of millions of households across India and world over.

NR Group

The NR Group has always been ahead of its time, which translated to a series

of marketing, research, product, packaging & organizational innovations. As a result,

the brand evolved from an incense sticks producer to one that provides a complete

range of solutions in natural aroma products. An extensive range of fragrance

products come under the brand - from coils and cones to aromatic oils; room

fresheners to reed diffuser sticks; fragranced lifestyle products to botanical research

and floral extracts.

Keeping with the new and yet preserving the traditional values has helped the

group grow extensively. The family enterprise is now seeing its third generation

overseeing the business as CEOs, most of who have returned to head the group

companies after management degrees from US universities. Over the last six decades,

the group has diversified into 6 sectors and in each; it has carved a name for itself.

The group companies have an independent corporate set up managed by professionals

with the third generation overseeing operations as CEOs.

The NR Group of Companies:

N. Ranga Rao & Sons (Manufacturer of Cycle Pure agarbattis)

Established in 1948, N.Ranga Rao & Sons is a pioneer and leader in the

incense industry for over 6 decades in

Creativity of fragrances and packaging.

Professional management and marketing, and now totally ERP integrated.

Has a library of over 500 fragrances, all created and blended in a house.

Consistently winning awards in various categories over the last few decades.


Rangsons Marketing Services Pvt. Ltd.

Established in 1993.

Independent professional organization marketing Cycle Brand Agarbattis and

the developing fragrance Domain products of NR Group.

Has a network of a large number of distributors and field force across all states

in India, enabling excellent after sales service.

Conducts consumer and market research regularly to understand their

perception and requirements.

NR Foundation (Non –Profit Charitable Trust)

Ranga Rao Memorial School for Disabled (Estd. 1988), the first residential

school for visually challenged girls in Karnataka.

Project Prerepana focuses on promotion of health and education of women and

children in selected slums of Mysore. Through the learning centres, 103

dropouts in the age group of 3 to 16 years have been groomed and brought

back into mainstream education.

Cycle Scholarship program wherein financial assistance is given annually to

about 600 students in Mysore and Hyderabad.

Ranga Jnana Vinimaya Kendra and centre for intellectual debate and

discussion. It is an informal interface between those who know and those who

want to know.

NESSO – Natural and Essential Oils Pvt. Ltd. (Mfr. & Marketer of essential Oil

and Floral Extracts)


Global market share leader in Indian floral extracts.

Has 7 extraction facilities strategically located near cultivation clusters in

South India with capacity to process 12tons of fresh flowers daily.

Over 24000 ha of green tea plantation.

Continuous research on standardization of herbal extracts, Ayurvedic

formulation and phytochemicals.

Delivers fresh, natural and quality floral concretes and absolutes to flavor and

fragrance houses, cosmetic and nutraceutical companies across the globe.


RIPPLE Fragrances Pvt. Ltd. (Mfr. & Marketer of personal & Air care Lifestyle

Products)


The spatial fragrance division of the NR Group.

Is strongly entrenched in the Indian air care market with its brands Lia and

IRIS.

Lia range of do-good air care products consists of room fresheners and car

fresheners.

IRIS is pioneering the home fragrances market in India through novel delivery

systems and exciting fragrances.

IRIS product range includes Reed Diffusers, Fragrance Vapourizers, Potpourri

Fragrant Stones, Speciality Incense, Pillow Mister and Aroma Candles.

Present in the personal care space to with DNA brand of Deodorants and

Perfumes.

Rangsons Electronics Pvt. Ltd. (Total Electronic Manufacturing Services)


Certified for ISO 9001: 2008. ISO 13485: 2003, ISO 14001: 2004 & OHSAS

18001:2007 and is an early adopter of RoHS regulations.

The first ENS enterprise in India to be certified for as 9100 – the quality

standard uniquely required by the aerospace industry.

Preferred partner for the High Mix-High Tech Electronics OEMs by providing

complete solutions required to transform ideas into successful products and

services.

Provides solutions in the field of medical systems, defense, industrial

networking and telecommunication.

REPL has received supplier awards from L&T, GE Medical Systems & Wipro

technologies.

N Ranga Rao & Sons Exports. The ambassador of Indian aroma traditions; this

company successfully exports incense and related products to more than 50 countries

in Asia, Africa, Europe, Latin America, the Middle East, Far East and North America.

N Ranga Rao & Sons Exports tops this achievement with a large number of

http://www.nrrexports.com/


prestigious awards for excellence in international business to its credit as well as a

winning streak with the Government of India Export Award in the incense category.

2.2 Nature of the business:

The best of raw materials are sourced directly from the Asian sub-continent.

None of these are issued for production until they pass very stringent quality control

tests.

NR Group has the strongest R&D setup in the entire agarbatti industry.

Years of rigorous research have given us distinction in fragrance creation, and known

to have set trends in creating different forms of incense and packaging.

NR Group's core competence - the nurtured art of creating new

fragrances is a family secret that has been handed down through generations,

safeguarding the purity and original quality of the incense.

Adding to the company's strength is the fact that all fragrances are made or

blended in-house and all processes are developed in-house, ensuring that there are no

collaborations. All statutory requirements under labor, forest, commercial and

pollution control laws are applicable to this industry, which is recognized by the

Government as a handicraft industry. This safeguards the interests of the production

workforce and the environment.

A professionally managed company, N. Ranga Rao & Sons introduced modern

practices such as Vendor Development Initiatives, Quality Management and HRD as

early as 1960.

Cycle agarbatti gives full and part time employment to many tribal hamlets and also

to more than 3000 families in India. Cycle products are totally eco-friendly - no CFCs

are released during production, no animal products used and no animal testing is

involved

2.3 Vision, Mission and Quality policy:

Vision Statement:

Satisfaction of consumer needs and wants through systematic and regular

customer services.


Mission Statement:

To enhance the wealth generating capability of the enterprise in a globalizing

environment, delivering superior and sustainable to consumers.

Quality policies:

The customer is the sole focus of the business.

Company constantly Endeavour towards customer satisfaction by

delivering products and services of the best value and quality

Company strives to honors our commitments, implied, to both, our internal

and external customer.

Company stress on integrity, transparency and consistency in all our

dealings.

Company always strives to have a trusting, mutually beneficial and long-

lasting relationship with our business associates.

Company seeks to maintain a warm, positive and friendly work.

Company empowers people at appropriate level to achieve their goal.

Company recognizes and reward merit and performance.


2.4 Products & Service profile:

Cycle brand

Table: 2

Cycle

Traditional yet contemporary; Cycle Agarbatti is a timeless classic.

This series contains fragrances that have stood the test of time to

remain hugely popular over the decades.

All in 1

An inspired and innovative combination pack perfect for gifting! It

has a collection of creative fragrances which have been popular

and successful for decades. This collection of amazing aroma

makes a good gift on any special occasion.

Natya Kesari

A sweet fragrance. A sublime fragrance. A classic fragrance. Only

incense with such qualities can hold its own with the passage of

time. And it has done so with aplomb. There are very few

fragrances that can match up to its power. Light it and you too will

get swayed by its waft.

Bansuri

The clear, uncluttered minds that are charmed by the simple things

in life will love this series of fragrances that stand out for the

simplicity and clarity in their notes. Bansuri produce an

exhilarating fragrance that tantalizes the senses and moves the soul.

http://www.cyclepure.in/images/products/All in 1.jpg





Three in One

One of our time-tested, best-selling combo pack which has

3 different fragrances in 1 pack:

1. Serene (Lily) The delicate, subtle fragrance of lily creates a serene

ambience. Let its gentle soothing and sedating qualities calm your heart

and emotions and lull you into a state of peace.

2. Yugantar (Fancy) A sweet, fruity creation whose aroma lingers on

long after it is burnt, yet is enticing enough to leave you yearning for

more. The fruity experience rejuvenates you completely, as much as

eating a vitamin packed basket full of fruits would.

3. Jagrane (Intimate) This utterly sweet smelling fragrance with its

bouquet of green and coniferous undertones creates a cozy atmosphere

and awakens your senses to the new aura surrounding you.

Surprise: As the name suggests, this is the unexpected delight of the

pack. You are surprised with a different fragrance every time, which

could range from the sweet smelling to the woodsy.

Moods

This emotion transforming incense is sharp, sweet and very, very

distinctive. Just a whiff of it is enough to put you in a different frame

of mind with its mood altering qualities. Now you know why it's called

Moods.

Lia

For the youthful you, for those seeking novelty, for those ready for

adventure and game for the new & unknown - Lia is always new,


2.5 Area of Operations- Global/National/Regional

Cycle Agarbattis is the market leader in India and is exported to over 60 countries.

The ambassador of Indian aroma traditions; this company successfully exports incense

and related products to more than 60 countries in Asia, Africa, Europe, Latin America, the

Middle East, Far East and North America.

N Ranga Rao & Sons Exports tops this achievement with a large number of prestigious

awards for excellence in international business to its credit as well as a winning streak with the

Government of India Export Award in the incense category.

The NR Group is vertically integrated in the fragrance domain. NR Group is one of the

few marketing companies in India that create and blend the perfumes.

2.6 Ownership pattern:

A family enterprise offering the highest quality and purity in all their products started by

Sri Ranga Rao. The family enterprise is now seeing its third generation overseeing the business

as CEOs, most of who have returned to head the group companies after management degrees

from US universities.

2.7 Competitors Information:

ITC- Mangaldeep:

always surprises you.

Lia has a range of fragrances to suit your mood and style.

Woods

The best in nature is captured for you in this premium incense. Woods

incense has natural oils and resins that have been treasured down the

ages for their aromatic and medicinal qualities. With its deep woody

smell, it connects you to nature instantly. Purity unmatched by any

other incense!

http://www.cyclepure.in/images/products/Woods.jpg

http://www.cyclepure.in/images/products/Woods.jpg


As part of ITC's business strategy of creating multiple drivers of growth in the FMCG

sector, the Company commenced marketing Agarbattis (Incense Sticks) sourced from small-

scale and cottage units in 2003. This Business leverages the core strengths of ITC in nation-wide

distribution and marketing, brand building, supply chain management, manufacture of high

quality paperboards and the creation of innovative packaging solutions to offer Indian consumers

high quality Agarbattis. With its participation in the business, ITC aims to enhance the

competitiveness of the small and medium scale sectors through its complementary R&D based

product development and strengths in trade marketing and distribution.

Mangaldeep Agarbattis are available in a wide range of fragrances like Rose, Jasmine,

Bouquet, Sandalwood, Madhur, Durbar, Anushri and Mogra. New launches include Fragrance of

Temple, Champa and Tarangini in an attractive pouch format.

The pouch format of packaging is increasingly becoming popular. Mangaldeep has

launched three variants – Champa, Tarangini & Malligai in the pouch format catering to various

market needs. The products have received encouraging response from consumers.

VASU Agarbattis:

VASU Agarbattis journey into the world of agarbattis started way back in 1984, with just

3 products, in Mysore. Regarded as the cultural capital of Karnataka (India), the city of

magnificent palaces and royal grandeur, the birth place of incense, is well known for its passion

for fragrances, sandal, and handicrafts.

Little wonder that the agarbattis made here are known the world over.

Today, with over 30 brands which have won numerous accolades, VASU Agarbattis in the

various segments are sold in over 200,000 outlets and across the globe.

The organizational vision, and a strong ethos in business practice, is ably managed by its three

partners, R.Krishna, R. Venkatesh and R. Mohan. Who are very much a part of the mission to

create innovative systems, tools and programs giving its managers a conducive environment for

learning, and, its staff motivation to develop and consolidate its position in the market.


The team is also well geared into the future, with a clear focus to expand its base of brands, both

nationally and internationally, while keeping updated on the latest technology and being part of

the industry development with a strong R&D team.

Moksh Agarbattis:

Company started operations in the year 1996, in Bangalore, India. Moksh is one of the

largest manufacturer and exporter of finest quality of Indian traditional flora agarbatti and

incense sticks selling it all over the world across 50 countries. Moksh‟s unique fragrances have

been extremely appreciated, with the nature-inspired products gaining huge popularity. Many of

the popular incenses and Agarbatti fragrances in India have come from Moksh‟s Agarbatti,

including the largest selling Swarna Champa brand. They use R&D experts to add new

fragrances to our portfolio by innovating newer fragrances. The incense sticks, Agarbatti brand

includes Swarna Champa, Rose Incense, Jasmine Incense, gold sandal, Swarna mallika,

Nag Champa Incense, Sandalwood Incense, and Herbal etc.

2.8 Infrastructural faculties:

It is well equipped with fully finished office with meeting halls, training rooms to

workers are provided with good working conditions like proper ventilation facility,

drinking water facility, good pantry and air conditioners. The equipments are also

arranged that the work flows smoothly and according to the requirements of the job.

As such infrastructure facilities are good.

An own premise is located in the heart of the Mysore city.

Separate building for all diversified companies.

Well-planned five-storied building is being used.

Transportation facility is provided by the company to the employees.

The ERP system is adopted in the organization.

2.9 Achievements / Awards

Par Excellence Awards (2009 & 2010) at the “National Convention on Quality Concepts”

4 awards in Advertising for Media Strategy, Radio Jingles and Innovation.

9 Chemexcil awards,


6 Visvesvaraya Industrial Trade Centre awards for excellence in exports.

3 Niryat awards from the Federation of Indian Export Organizations.

Merit awards from the Handicrafts Council at State and National levels.

NR Group wins Quality Circle’s par Excellence Award:

Mysore, 4th January 2010: NR Group, the manufacturer of India's leading agarbattis

brand 'Cycle Pure Agarbattis', has won Par Excellence awards at the National Convention for

Quality Concepts 2010, held in Vishakhapatnam recently. The awards were given for Quality

projects on power conservation and packaging printing undertaken by NR Group employees for

improving efficiency within the organization.

The first team undertook a project on power conservation, aimed at reducing power

wastage by analyzing the different areas where wastage was occurring. An awareness campaign

was taken up internally, due to which the team successfully managed to reduce wastage. The

larger impact was formed in the attitude of the employees.

The second team, from the exports division of NR Group, focused on reducing the cost

and time for printing variant names on packaging. By setting up the printing process in-house,

the time for dispatching the final products was considerably reduced.

Mr. Arjun Ranga, Managing Partner, NR Group, said, “We are very proud of our

employees and their achievements. NR Group employees, by forming quality circles or groups,

are encouraged to participate in various forums and competitions on the quality front. As a

company, we have understood the need to be highly quality-focused. Quality control systems

give both internal and external audiences the belief that the organization, its products & services

can be trusted.”

NR Group has consistently won Quality awards over the past two years from Quality

Circle Forum of India and the Government of India. The awards won by the company include -

Par Excellence Award from Quality Circle Forum of India (CCQC 2009), Excellence award

from Quality Circle Forum of India (NCQC 2009), Chemexcil for Exports from the Government

of India and Excellence in Exports from the Government of Karnataka, among others.


CE certification for the unmatched safety of products

2.10 Work flow model (end to end):

Production process: (Figure: 1)

Finished bamboo sticks

sorting of stocks

Raw materials

Preparation of paste

Coloring (if required)

Rolling batties

Blending & Perfuming

Drying

Packing

Dispatch


Cluster actors: (Figure: 2)

Forest department raw material supply

Testing

Govt policies, Support inst,

Financial inst, Marketing

Advantage – hand rolled,

Eco-friendly perfumes

Cost & aesthetics

MNCs global competition, Mechanization,

Technology, Infrastructure, HR, etc

R/M suppliers

Stick maker Stick sorter Agarbatti roller

Forest dept

bamboo supply Sorting of agarbattis

Packaging section Packaging

industry

Perfume industry

Agarbatti perfumer

Customers Dealer‟s

agents/retailers

Transporter


2.11 Future growth and prospects for the company:

Cycle Pure agarbattis are the market leader in the Indian Market but now other brands are

coming to market and Major revenue is getting from exports and company wants to strong their

brand in Indian market.

Introducing innovations and being perceived as the best agarbatti product provider in the

country; and having ability to respond to the ever-changing demand of the consumers.

CHAPTER: 3


3 MCKINSEY’S 7S FRAME WORK WITH SPECIAL REFERENCE TO

ORGANISATION:

3.1 McKinsey’s 7S model:

The 7s Framework of McKinsey is a management model that describes 7 factors to

organize a company in a holistic and effective way. Together these factors determine the way in

which a corporation operates.

There are 7 basic dimensions, which represent the core of managerial activities. These are

the „levelers‟, which executes use to influence complex and large organizations. Obviously, there

was a concerted effort on the part of the originators of the model to coin the managerial variables

with words beginning with the letter S. So as to increase the communications power of the

model.

Figure: 3 Source: McKinsey 7-S Framework, from the book „In search of Excellence‟ by

Thomas J Peters and Robert H Waterman

Application of 7s Model:

1. Structure:

The organization chart and accompanying baggage that show who reports to whom and

how tasks are both divided and integrated.

Since N.Ranga Rao & Sons is a private ltd company. The structure of the organization is

democratic. Major decision however is taken is at top-level management of the company.


Organization Chart: (Figure: 4)

Source: Company Brochure

2. System:

Formulation of agarbatti (incense stick) is an ancient art. The finest ingredients are

blended in exact proportions so that the same unique fragrance bouquet is obtained every time.

Traditionally handmade, the batties are rolled by hand under strict supervision.

Quality always has been an integral part of our organization in all processes during

product realization. Quality checks are done at material inward, in process and finished goods

stages through statistically designed sampling plans. Quality checks at vendor premises daily, is

our norm for out-sourced processes.

Our AWARENESS on the importance of quality and introduction of FORMAL methods

for quality control and improvement has been an evolutionary development over 6 decades.

Systems based on ISO 9001: 2008 has been implemented, to provide guidelines for the

formation of Quality Management System.

3. Style:

Area Sales Manager

Sales Executive

Sales of territory

Territory

Sales Representative


Style is one which top managers can use to bring about organization change. The aspects

of business most emphasized by members of the top management tend to be given more attention

by people down in organization. Reporting relationship may also convey the style of the

organization.

The reasons to support this are as follows:

Whenever important decision are to be made, the whole staff is allowed to participative

in the decision making where by suggestions are sought and if found appropriate are

accepted and implemented.

In N.Ranga Rao & Sons instead of „Boss-Subordinate‟ relationship among the employees

of the organization, superior acts as a guide and facilitator for his subordinates.

The top management always encourages changes in the organization provided they

happen to be always ready to cope with different situation.

4. Staff:

Presently there are about 6 in NR Group. Employees are the functional unit of any

organization. The company contributes to the prosperity of the society as whole by providing

equal opportunities to all. The company provides training to get gainful, high performance

employees. 1500 plus employees are working under N.R.Group in all over India.

5. Skill:

The qualified personnel with required skills and competency are recruited and selected

for the required designation.

For example: for recruiting and selecting the manpower required by the Marketing

department the criteria would be MBA (Marketing) and who have the capabilities and

competencies to handle the functioning of work smoothly.

6. Strategy:

The strategies being adopted by the company:


"FRAGRANCE WORLD”, THE EXCLUSIVE RETAIL SHOWROOM:

Fragrance World‟, the exclusive retail showroom of the Mysore based NR Group located on

Dhanwantri road in Mysore city.

Advertisement in a traditional and devotional way like (Bhagawah hai, Devaru eddare )

Sponsoring Third umpire ship in International cricket matches

Building bus stands in the Mysore city with colorful background of Cycle pure agarbattis

posters

7. Shared values:

The common feeling among the people in the N.Ranga Rao & Sons is that they are

meeting the demands of the customers and fulfilling the expectations in the form of productions

and its variability. The employee also have belief that they are giving at the best possible price to

milk they procure from farmers. Value of NR Group:

Honesty

Discipline

Transparency

Cleanliness

Total quality

Self-reliance

Co-operative free politics

Respecting others opinions, emotions, thoughts, and feelings.

4. N.Ranga Rao & Sons - SWOT ANALYSIS:

SWOT analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a business venture. It involves specifying

the objective of the business venture and identifying the internal and external factors that are

favorable and unfavorable to achieving that objective. A SWOT analysis must first start with

defining a desired end state or objective. A SWOT analysis may be incorporated into the

strategic planning model.

* Strengths: Attributes of the person or company that is helpful to achieving the objective(s).


* Weaknesses: Attributes of the person or company that is harmful to achieving the

objective(s).

* Opportunities: External conditions those are helpful to achieving the objective(s).

* Threats: External conditions which could do damage to the objective(s).

Identification of SWOTs is essential because subsequent steps in the process of planning for

achievement of the selected objective may be derived from the SWOT.

Table: 3

STRENGTHS

Art of perfuming is well accustomed.

Large labor base

Exposure to Export markets

No power requirement

Aids to poverty elevating program

Has a huge potential to generate

employment

Recognized under the handicraft sector

Supports many allied activity of

handicraft (Bamboo splitting, Paper

tube making etc.)

Support of Government departments,

NGOs

WEAKNESSES

Decrease in raw material availability

Lack of mutual trust

Customer awareness is very low

amongst low-end producers.

Finance is not liberal since industry

involves large working capital.

Lack of innovations and experimenting

skills to explore the new users & uses

No progress in R&D

Laws, acts etc.

Poor living condition at bottom of the

network


OPPORTUNITIES

Large export market potential.

Scope for innovations and R&D

Domestic market expanding

Machine milled, hand rolled batties are

having a competitive edge over machine

made agarbattis

Free trade regime can provide better

raw materials for better price

THREATS

Global competition.

Unethical practices at local level.

Forest based raw material supply

becoming scarce

Mechanization.

5. LEARNING EXPERIENCEE:

This 10 weeks project work was an excellent opportunity to experience the real business

environment and learn skills that would assist the researcher wherever researcher goes in life.

The researcher feels extremely grateful towards N.Ranga Rao & Sons Pvt Ltd for giving an

opportunity to work as an internship trainee. It was valuable to be immersed in the industry and

have the chance to talk to many professionals at the company.

The project work gave the researcher an insight on the practicality of some of the

academic knowledge gained during the first three semesters of the MBA course. The in-plant

training undertaken at N.Ranga Rao & Sons Pvt Ltd has enabled me to enhance the knowledge

and get an insight of the organization and its managerial functions. The study makes one really

think and visualizes how things happen in an organization. As the study does not focus on only

one aspect of company, there was greater opportunity to visit every work place of the company

like shop floor. Through the shop floor visit, I learnt the entire work flow. These processes occur

through healthy interaction of various departments.

The department studies helped me to understand how a company functions overall. The humble

involvement, information help and support offered by the N.R Group employees gave a better

understanding of their functions, responsibility as well as what is really expected of them from

their respective departments. The managerial qualities learnt from N.Ranga Rao & Sons are good


leadership, discipline, hard work, knowledge, communication, motivation, interaction,

cooperation and humanity. Practically meeting them and getting exposed to company motivates

one to become sincere and committed at work like them in future.

Researchers feel it was a great opportunity to undergo In-Plant training at N.Ranga Rao

& Sons Pvt Ltd and Researcher understood how the company till now is fulfilling requirements

by providing the materials required by the concerned departments at proper time. The support

and the hands on experience during 10 weeks in the organization has become a value addition to

my MBA curriculum.


PART-B


CHAPTER: 1

1. GENERAL INTRODUCTION

The market for incense sticks is very vast and the demand for these incense sticks is high

even in the far-flung rural areas. The incense industry is driven by factors other than commerce

like tradition, superstition and religion…

India has a leadership position in the incense sticks market and fulfills more than half of

the world‟s incense sticks requirements. Export earnings have crossed 220 crore mark while the

domestic market is expected to be well over a 1000 crores. Every year more than 60 billion sticks

are produced and the market is growing at a rate of 7% per year.

The incense stick market faces a sudden upsurge in demand during the festival season.

Demand from both domestic and international sectors peaks up during festivals like Dasara and

Diwali. Some of the popular fragrances that have captured the imagination of consumers both in

India and abroad include Archanam – Mogra, Yagyam – Havan, Yogam – Dhoop, Poojanam –

Saffron, Dhyanam – Sandal, Chintanam – Kasturi, and Shantam – Rose.

Today, the incense industry has not only become a major revenue earner for the

Government it has also become a prominent source of employment for women in rural areas.

Presently, the incense industry in India is a cottage industry and the market is largely

unorganized. Only 20% of the market is occupied by organized players while the rest is

controlled by small operators. The government needs to pay urgent attention to this industry if it

wants the industry to retain its leadership position in the industry.

The incense stick industry has also promoted social entrepreneurship in the rural and

semi urban areas as more and more people have acquired the confidence to start their own

businesses. Some reputed Indian corporate have taken the lead in promoting this trend by

training rural women in bamboo cutting, incense rolling, raw incense sorting, perfuming and

packaging of incense sticks. The entry of corporate has helped in mechanization at each step of

the manufacturing process. Earlier rural women used to cut bamboo with an axe leading to

injuries. This process has been done away with the introduction of bamboo cutting machines.


CHAPTER: 2

2. RESEARCH DESIGN / METHODOLOGY OF THE STUDY:

Meaning of research has confined to the concept:-

As per author Philip Kotler, Marketing Research is the systematic design collection,

analysis and reporting of data and findings to a specific marketing situation facing the company.

To meet this objective, the company should know its consumers, their needs, tastes,

preferences and condition of market etc. This information is provided by Market Research. In

this study we confine to reach the product rendered by the Cycle pure agarbattis to satisfy the

consumers.

Rationale behind the study:-

Theoretically whatever we study in management courses can be easily accumulated and

understand only when it is used practically, when theoretically; knowledge is put into practice,

the problems, obstacles or the impediments will come out and suitable marketing strategies can

be implemented to solve it, then there will be a perfection and experience and clear knowledge

about the subject in the mind of the learners. That is why in every management or career

advancement courses, a Practical Training like simulations, case study, project reporting,

working situation are given.

In today‟s competitive world it has become imperative for companies around the world to

keep a track on what consumers wants from the various products offered to him: it is also

necessary for us to keep a tab on the changing needs of the consumers so that we may align our

products accordingly to meet the consumer expectations. The objective of all business enterprise

is to satisfy the needs and wants of the consumers and thereby to earn profit.

The slogan “caveat emptor” turned as “caveat vendor” because, the producer‟s fate is

decided by the action of the consumer i.e., either by accepting the product or rejecting it. Under

the modern concept of marketing, the producers responsibility is not ended with production and

distribution of goods, he has to satisfy the needs of consumers by producing and offering the


products in the way which a consumer wants. Marketers believe that, “the customer is the king”.

The present marketing environment is customer oriented.

2.1 Research method

It is a master plan, which contains everything on how to start and how to finish

effectively. It‟s a frame work for action. It specifies pattern of framework for controlling the

collection of data accurately and economically and specifies methods and procedures.

It is the "glue" that holds all of the elements in a research/project together. We often

describe a design using a concise notation that enables us to summarize a complex design

structure efficiently. The Research design constitutes the blue print for the collection,

measurement and analysis of data. It aids the researcher in the allocation of limited resources by

posing crucial choices. The blue print includes experiments, interviews, observation, and the

analysis of records, simulation or combination of these. Description of research design.

According to Graham “Research Design is the specification of method and procedure for

acquiring the information required for the solution of a specific problem. It provides scientific

framework for conducting some research investigation. The procedure and plan for collecting

and analysis of the information can be outlined once the problem is formulated and the

objectives of the investigation should taken into consideration the resource and time available for

a study.

To Design is to plan. Designing is the process of making decisions before the situation

arises, in which the decision has to be carried out.

Designing is the process of deliberate anticipation towards bringing an expected situation

under control.

If we anticipate before we conduct a research inquiry, the various difficulties that may

have to be encountered in the course of this exercise and decide what to do about these problems,

and then we increase to the extent our chances of rationally controlling and articulating the

research procedure and for forecasting the possibilities of failure.


In my research I have used the DESCRIPTIVE RESEARCH DESIGN. Descriptive

research describes the characteristic of a group. This type of research is also a grouping that

includes many particular research methodologies and procedures, such as observations, surveys,

self-reports, and tests since our population size was more we have used the sample survey

research method. We considered a sample which is the representative of the total population.

2.2 Statement of the problem

This study has been conducted in order to know the “Consumer Satisfaction level

towards CYCLE PURE agarbattis in Mysore city”. It is conducted to find out factors which

influence to buy Cycle Pure Agarbattis. Increased awareness likes and dislikes of consumers

become loyal to a particular brand and some others. What issues are pertaining to Consumer

Satisfaction? All these issues are addressed by this study. Therefore this study is conducted to

determine the Consumer Satisfaction.

2.3 Need of the study

This project report is also concerned with such marketing research. The report deals with

“A Study on Consumer Satisfaction Level towards Cycle Pure Agarbattis in Mysore city”,

attempts had made to analyze marketing situation and marketing problems confronted and also

consumer survey has been undertaken for analyzing their opinions towards Cycle Pure

Agarbattis. Suggestions have been given for adopting suitable marketing programs ensuring fair

return on the capital invested on one hand and consumer satisfaction on other hand.

To identify the needs of the consumer in agarbattis.

To study the consumer satisfaction level towards Cycle Pure Agarbattis.

Find out the consumer‟s opinion in different agarbatti attributes.


2.4 Objectives of the study

For the purpose of carrying out any activity the primary requirement is to fix up the

objectives.

The objectives of the study are as follows:

To understand the Agarbatti market.

To understand and analyze the consumer agarbatti usage pattern.

To understand the needs of consumers while searching agarbatti products.

To understand how respondent will react about their using agarbatti product.

To know and understand the attributes which are attracting the consumers in

agarbattis.

To know the opinions of respondents towards Cycle Pure Agarbattis.

To understand impact of local brands.

To know the awareness about premium agarbattis.

2.5 Scope of study

This study is on “Consumer Satisfaction Level towards Cycle Pure agarbattis in Mysore

city”. This report attempts to bring about details regarding history, fundamental concepts and

types of products. This study also attempts to look into the profile of N.Ranga Rao & Sons

Company limited, Consumer opinion about Cycle Pure agarbattis.

In this research only some of the leading agarbatti companies in Mysore city have been

taken into consideration because the competition lies in between these leading companies and

hence it will be easy for me to study their opinion towards agarbattis

2.6 Operational Definition & Concepts

Marketing:

Marketing is the process by which companies determine what products or service may be

of interest to consumers, and the strategy to use in sales, communications and business

development. It is an integrated process through which companies create value for consumers

and build strong customer relationship in order to capture value from customer in return.


Consumer:

A consumer is a person or group of people that are the final users of products and or

services generated within a social system. A consumer may be a person or group, such as

a household. The concept of a consumer may vary significantly by context.

Attitude:

An attitude is a hypothetical construct that represents an individual‟s degree of like or

dislike for an item. Attitudes are generally positive or negative views of a person, place,

thing, or event- this is often referred to as the attitude object.

Consumer satisfaction:

Everyone knows what satisfaction is, until asked to give a definition.

Then, it seems, nobody knows… This quote of consumer satisfaction, expresses the challenge of

defining this most basic of consumer concepts. Satisfaction is consumers, fulfillment response. It

is a judgment that a product of service feature, of the product or service itself, provides a

pleasurable level of consumption related fulfillment. In less technical terms, we translate this

definition to mean that satisfaction is the consumer evaluation of a product or service in terms of

whether that product or service met their needs and expectations. Failure to meet needs and

expectations is assumed to result in dissatisfaction with the product or service. Consumer

satisfaction will be influenced by specific product or service features and by perceptions of the

quality. Satisfaction will also be influenced by consumer‟s emotional responses, their attributes

and their perceptions of equity. For consumer satisfaction to be high, promises and expectations

must be met.

Consumers who have an issue dealt with to their satisfaction have a 95% likelihood of

repurchasing and telling 5 people about their experience; if they don‟t complain (as 96%

of people do) they will tell at least 10 other people about their problem.

The occurrence of problem can cause a 15-to-30-point drop in high satisfaction

Responses and in loyalty indications. This puts revenue at risk to an average tune of 11%.

Therefore, some techniques to maintain and improve satisfaction must be considered. An

effective complaint handling system is an excellent defensive tool.

Ongoing surveys to measure consumer satisfaction, loyalty, and capture the voice if the

consumer is also essential.

Consumer Satisfaction = Performance / Expectation


Consumer Satisfaction = Benefits / Conceived

Product and service features:

Consumer satisfaction with a product or service is influenced by the Consumer‟s

evaluation of product and services features. In conducting satisfaction studies, most firms will

determine through some means what the important features and attributes are for their service

and they measure perceptions of those features as well as overall satisfaction.

Consumer Emotions:

Consumer emotions can also affect their perceptions of satisfaction with a product or

services. These emotions can be stable, pre-existing emotions. Specific emotions may also be

included by the consumption experience itself, influencing a consumer‟s satisfaction with the

products or services.

Perception of equity or fairness:

Consumer satisfaction is also influenced by the perception of equity and fairness.

Consumer asks themselves:

“Have I been treated fairly compared with other consumers?”

“Did other consumers get better treatment, better quality Services?”

“Did I pay a fair price for the product?”

“Was I treated well in exchange for what I paid and the effort I expended?”

Notions of fairness are central to consumers. Perception of satisfaction with the Products and

Services.

Consumer Satisfaction Highlights

Today in the consumer driven economy, all firms are engaged in a quick race to attract

consumers and build a long term relationship with their loyal Consumers. The key to consumer

loyalty is through “Consumer Satisfaction”.

A satisfied consumer will act as a spokesperson of the company‟s product, and bring in

more buyers. There is also a high correlation between loyalty and profitability.


There is the Pareto principal or the 80/20 rule; it says that 80% of one thing comes from

20% of another. That is to say a small percentage of loyal consumers will lend a large weight to

the company‟s sales. Therefore marketers have to ensure Consumer value satisfaction.

For this they have to ensure: Relationships are built to offer lifetime consumer value to

enable the consumer to experience “value satisfaction”. Communications are used to convey to

consumer to experience that goes on using a “value” added product.

The efforts of the marketers in trying to understand buying motives, organizing buyer

behavior and suitable promotional strategy to suit the consumer behavior is to ensure

“CONSUMER SATISFACTION”.

2.7 Limitations of the study

All studies have their own parameter and it is difficult to make a study on assumptions.

Hence, complete accurate information through the survey. The following are some limitations.

Primary data cannot be obtained rapidly.

Availability of time for study was less.

The study is limited to Mysore city.

Respondents sometimes refuse to give information.

Chance of giving wrong information.

Respondents may not give clear cut data.

The sample size is restricted to 150 only because of time constraint.

The study has to be completed within a short span of time that was available.

Data was collected only through direct personal interview and filling the

questionnaire that was completely an individual view points.


CHAPTER: 3

METHODOLOGY OF DATA COLLECTION:

Methodology:

After having identified the problem as the “Consumer Satisfaction towards Cycle Pure

Agarbattis in Mysore city” it was decided to conduct a descriptive research.

Adequate suitable secondary data was collected for the study and was decided to take a

survey to conduct for the study.

3.1 Sources of data:

A study is successfully completed when the data available is appropriate and adequate.

Primary Data

Primary data refers to the data that is fresh and collected for the first time. It refers to the

data collected by the researcher himself and original in character.

The primary data were derived from the answers respondents gave in the structured

questionnaire prepared by the researcher. The primary data is collected from Consumers through

questionnaire. So, the researcher visited around 150 consumers in Mysore City. The

questionnaires have contained 18 questions with both open ended and closed ended questions.

The respondents were asked to give their opinion regarding the concerned topics and respondents

have given valuable information.

Primary Data are original source, which are collected directly from the respondents. This

information is collected through questionnaire, personal interview and through observation.

Secondary Data

The Secondary data, on the other hand, is those which have already been collected by

someone else and which have already been passed through statistical processes. Secondary data

is the information that already exists. For collecting secondary data researcher used internet,


magazines, newspapers and various books. Researcher also consulted faculties for getting

valuable information.

These sources consist of readily available information and already complied statistical

statement whose data may be used by the researchers for their study.

The secondary sources include Annual reports, Journals, Articles as well as magazines

and manuals.

Descriptive Research

Descriptive Research is also called Statistical Research. The main goal of this type of

research is to describe the data and characteristics about what is being studied. The idea behind

this type of research is to study frequencies, averages, and other statistical calculations. Although

this research is highly accurate, it does not gather the cause behind a situation. Descriptive

Research is mainly done when a researcher wants to gain a better understanding of a topic for

example, a frozen ready meals company learns that there is a growing demand for fresh ready

meals but doesn‟t know how much about the area of fresh food and so has to carry out research

in order to gain a better understanding. It is quantitative and uses surveys and panels and also the

use of probability sampling.

This type of research is also a grouping that includes many particular research

methodologies and procedures, such as observations, surveys, self-report, and tests. The four

parameters of research will help us understand how descriptive research in general is similar to,

and different from, other types of research.

3.2 Sampling Plan:

Population: Consumers in Mysore city.

Sample Size: 150 consumers in Mysore.

Sampling Method: Non probability, Convenience Sampling Method.


This study follows non probability sampling method in which units of the sample are

selected on the basis of convenience. In non-probability sampling this study followed

convenience sampling, which refers to sampling by obtaining units or people who are most

conveniently available.

3.3 Field Work:

The field work was done in this project by using a well-structured questionnaire. The

questionnaire was filled in personally by some of the respondents whereas some of the

questionnaires were filled by researcher himself by asking questions to respondents. The survey

was conducted in Mysore City. The survey questionnaires were coded and then tabulated. The

analysis and interpretation was given based on the results of the tabulation.

3.4 Tools and Techniques of Data Collection:

Research Instrument

The tools and instruments used are questionnaire for collecting primary data and MS-

Excel to analysis the data. For this study, questionnaire was used as the research instrument to

know the satisfaction level of consumers. A structured questionnaire was distributed to the

selected respondents. The questionnaire given to the respondents aimed to know opinion about

product and the questionnaire was structured in such a way that respondents were able to answer

it easily.

Data Analysis Procedure:

Percentage analysis method

The statistical tool used in this research is

PERCENTAGE ANALYSIS = NUMBER OF RESPONDENTS * 100

TOTAL NUMBER OF RESPONDENT

Data Analysis and Presentation

Percentage analysis is a useful tool. Percentage refers to a special kind of ratio.

Percentage is in making comparison between two or more series data. Percentages are used to


describe relationships. This method is used for the analysis of the data this analysis has given a

clear picture of the research study it means how many of the respondents are involved in the

interview and what type of opinion they are having is based on the type of the analysis and the

interpretation is mainly based on the percentage analysis.

The present research study, to estimate the research in percentage, percentage analysis, is used

for analysis of the data

Data Analysis Procedure:

Likert’s Questionnaire Values and Interpretation:

The Likert survey has been selected. Questions in the questionnaire have enabled the

respondents to answer the survey easily. In addition, this research instrument allowed the

researcher to carry out the quantitative approach effectively with the use of statistics for data

interpretation. Once all the answers of the respondents have been gathered, the researcher

computed the weighted mean value for each survey item. The mean was then compared to the

Likert scale to interpret the results. The weighted mean was used in order to obtain the average

values that represented the sample‟s response to each question in the survey. This helped the

researcher identify the general response of the participants to the question given.

Data Analysis and Presentation

In order to analyze the data gathered from the survey, the weighted mean for each

question item was computed. Weighted mean is the average wherein every quantity to be

averaged has a corresponding weight. These weights represent the significance of each quantity

to the average. To compute for the weighted mean, each value must be multiplied by its weight.

Products should then be added to obtain the total value. The total weight should also be

1 Strongly Agree

2 Agree

3 Neither Agree Nor Disagree

4 Disagree

5 Strongly Disagree


computed by adding all the weights. The total value is then divided by the total weight.

Statistically, the weighted mean is calculated using the following formula:

Weighted mean = (Y1 x 5) + (Y2 x 4) + (Y3 x 3) + (Y4 x 2) + (Y5 x 1)

-----------------------------------------------------------

100

Where Y1, Y2, Y3, Y4, Y5 are the number of respondents that selected the given Likert choices

The computed mean was then compared to the scale for interpretation as given below:

Software used for data analysis:

The software used in this research study is

Microsoft word.

Microsoft excel

Statistical techniques used:

Pie chart

Bar diagram

Doughnut diagram

Primary data in the present research plays a very vital role; conclusion and

recommendation in this research are completely based on the data analysis and interpretation.

The primary data collected from the respondents has been classified and tabulated using

statistical tools. Analysis is purely based on classified and tabulated data. Analysis in the form of

theory has been interpreted just below the table since the researcher is completely aware of the

limitations of advance statistical tools. Researcher has simply analyzed the primary data with the

help of percentile analysis and other simple methods of statistics.

The analyzed data have been represented diagrammatically or graphically wherever

required. Bar charts, Pie diagram, data classification, tabulation, analysis and interpretation have

been followed by summary of findings.


CHAPTER: 4

ANALYSIS & INTERPRETATION OF DATA

Table 5: Gender of the Respondents

Source: Primary data

Graph: 1

Analysis: From the survey data it is observed that 62.67% of the male and followed 37.33%

respondents are female.

Interpretation: Above analysis shows that Male consumers are decision makers while

purchasing the agarbatti products.

Respondent Respondent %

2 Female 56 37.23%

1 Male 94 62.67%

94

62.67%

56

37.23%

0

20

40

60

80

100

120

140

160

Gender of the Respondents

SL. no Gender Respondent Respondent %

1 Male 94 62.67%

2 Female 56 37.23%


Table 6: Age group of the Respondents

SL. no Age group Respondent Respondent %

1 Below 25 13 8.67%

2 25-35 38 25.33%

3 36-45 28 18.67%

4 46-55 36 24%

5 55 & Above 35 23.33%


Graph: 2

Analysis: Above table shown that out of 150 respondents 8.67% of respondents are falling under

age group Below 25 years, 25.33% of respondents are under 25-35 years, 18.67% of respondents

are under 36-45 years, 24% of respondents are under 46-55 years and 23.33% of respondents are

above 55 years.

13

38

28

36 35

8.67% 25.33% 18.67% 24% 23.33%

Below 25 25-35 36-45 46-55 55 & Above

1 2 3 4 5

Age group of the Respondents



Interpretation: Except below 25years age group respondents, remaining all age group

respondents are shows equal response in buying agarbatti products.

Table 7: Occupation of the Respondents

Sl No Occupation Respondent Respondent %

1 Business/Entrepreneur 32 21.33%

2 Government employee 28 18.67%

3 Employee in private organization 26 17.33%

4 Retired person 20 13.33%

5 Housewife 42 28%

6 Other 2 1.34%


Graph: 3

Analysis: Above table shown that out of 150 respondents 21.33% of respondents are in

Business/ Entrepreneur, 18.67% of respondents are Government employees, 17.33% of

21%

19%

17%

14%

28%

1%

Occupation of the Respondents

1 Business/Entrepreneur

2 Government employee

3 Employee in privateorganization

4 Retired person

5 Housewife

6 Other


respondents Employee in private organization, 13.33% of respondents are Retired persons, 28%

of respondents are Housewife‟s, and 1.34% of respondents are in other occupation.

Interpretation: The customer is different and consumer is different. At the time of purchasing

male respondents are high and at the time of using female respondents that to housewives are

high. Consumers means actually who uses the product.

Table 8: Educational qualification of the Respondents

Sl No Education Respondent Respondent %

1 Post Graduate 25 16.66%

2 Under Graduate 59 39.34%

3 PUC 20 13.33%

4 SSLC 40 26.67%

5 Below SSLC 6 4%


Graph: 4

17%

39% 13%

27%

4%

Educational qualification of the Respondents

1 Post Graduate

2 Under Graduate

3 PUC

4 SSLC

5 Below SSLC


Analysis: Above table shown that out of 150 respondents 16.66% of respondents are Post

Graduates, 39.34% of respondents are Under Graduates, 13.33% of respondents are PUC,

26.67% of respondents are SSLC, and 4% of respondents are Below SSLC.

Interpretation: The major portion user qualification is Under Graduate. And by using agarbatti

the education qualification does not matter.

Table 9: Annual income of the Respondents

Sl No Annual income Respondent Respondent %

1 Below 10000 Rs 3 2%

2 10000Rs – 25000Rs 7 4.67%

3 25000Rs – 50000Rs 6 4%

4 50000Rs – 75000Rs 12 8%

5 75000Rs – 100000Rs 13 8.67%

6 100000Rs – 150000Rs 12 8%

7 150000Rs – 200000Rs 15 10%

8 200000Rs & above 82 54.66%


Graph: 5

Analysis: Above table shown that out of 150 respondents, 2% of respondents are falling under

below 10000Rs, 4.67% of respondents are under 10000Rs – 25000Rs, 4% of respondents are

under 25000Rs – 50000Rs, 8% of respondents are under 50000Rs – 75000Rs, 8.67% of

2%

4.67%

4%

8%

8.67%

8%

10% 54.66%

0 20 40 60 80 100

Below 10000 Rs

10000Rs – 25000Rs

25000Rs – 50000Rs

50000Rs – 75000Rs

75000Rs – 100000Rs

100000Rs – 150000Rs

150000Rs – 200000Rs

200000Rs & above

12

34

56

78

Annual income of the Respondents

Respondent

Respondent %


respondents are under 75000Rs – 100000Rs, 8% of respondents are under 100000Rs –

150000Rs, 10% of respondents are under 150000Rs – 200000Rs, and 54.66% of respondents are

under 200000Rs & above income level.

Interpretation: When purchasing the agarbatti product the annual income of the respondents

plays a major role. Depending upon the annual income the monthly amount spent on agarbatti

will be decided by the consumers and major portion occupied by 200000Rs and above income

consumers.

Table 10: Festival celebrated by the Respondents

Sl No Festivals Respondent Respondent %

1 Diwali and Ganesh Pooja 146 97.33%

2 Id-Ul-Fitr - 0%

3 Christmas 4 2.67%

4 Other - 0%


Graph: 6

In this question Diwali and Ganesh Pooja is considered as 1 and that is Hindu, Id-Ul-Fitr is

considered as 2 and that is Muslim, and Christmas is considered as 3 and that is Christian.

97.33%

0%

2.67%

0%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00%

146

-

4

-

Diw

ali a

nd

Gan

esh

Po

oja

Id-U

l-Fi

trC

hri

stm

asO

ther

12

34

Festival celebrated by the Respondents

Respondent %


Analysis: Above table shown that out of 150 respondents, 97.33% of respondents are Hindu,

2.67% of respondents are Christians.

Interpretation: From the above analysis the major consumer category will come under Hindu

religion and few percentage of Christians are also using agarbattis.

Table 11: Purpose of usage of agarbattis by the Respondents

Purpose

Rating

Agarbatti

Number of

Respondents

Weighted

Average

Religious purpose 1 15 15

Fragrance purpose 2 17 34

Part of Pooja 3 118 354

Total 150 403


Weighted Average

2.68

Graph: 7

0 100 200 300 400 500

1

2

3

4

5

6

15

17

118

150

0

2.68

15

34

354

403

Purpose of usage of agarbattis by the Respondents

Agarbatti WeightedAverage

Agarbatti Number ofRespondents

Rating

Purpose


Analysis: Above table shown that out of 150 respondents, 10% of respondents are used for

Religious purpose, 1.33% of respondents are used for Fragrance purpose, and 78.67% of

respondents are used for Part of Pooja.

Interpretation: From the analysis the major portion of consumers using agarbattis for Part of

Pooja when compare to other purposes like Religious purpose or Fragrance purpose.

Table 12: The total amount spent on agarbatti in a month by Respondents

Sl No Amount Respondent Respondent %

1 10 Rs – 20Rs 6 4%

2 20Rs – 30Rs 36 24%

3 30Rs – 50Rs 45 30%

4 50Rs – 75Rs 9 6%

5 75Rs – 100Rs 22 14.67%

6 100Rs and above 32 21.33%


Graph: 8

4%

24%

30% 6%

15%

21%

4%

24%

30% 6%

15%

21%

The total amount spent on agarbatti in a month by

Respondents

1 10 Rs – 20Rs

2 20Rs – 30Rs

3 30Rs – 50Rs

4 50Rs – 75Rs

5 75Rs – 100Rs

6 100Rs and above


Analysis: Above table shown that out of 150 respondents, 4% of respondents are spent 10 Rs –

20Rs, 24% of respondents are spent 20Rs – 30Rs, 30% of respondents are spent 30Rs – 50Rs ,

6% of respondents are spent 50Rs – 75Rs, 14.67% of respondents are spent 75Rs – 100Rs, and

21.33% of respondents are spent 100Rs and above.

Interpretation: From the above analysis the major portion of consumers will spent 20-30Rs or

30-50Rs for agarbatti in a month and some consumers will spent 100Rs and above in a month .

Table 13: The attributes of Respondents is looking in agarbattis

Sl No Attributes Respondent Respondent %

1 Price 6 4%

2 Good quality 69 46%

3 Fragrance 68 45.33%

4 Easy availability 5 3.33%

5 Good packaging 2 1.34%


Graph: 9

4%

46% 46%

3%

1%

The attributes of Respondents is looking in agarbattis

1 Price

2 Good quality

3 Fragrance

4 Easy availability

5 Good packaging


Analysis: Above table shown that out of 150 respondents, 4% of respondents are looking for

Price, 46% of respondents are looking for Good quality , 45.33% of respondents are looking for

Fragrance, 3.33% of respondents are looking for Easy availability, and 1.34% of respondents are

looking for Good packaging.

Interpretation: The above table tells the consumers will look for Quality and Fragrance equally

and rest attributes are not much impact able.

Table 14: The agarbatti product Respondents are used daily

Sl No Products Respondent Respondent %

1 Moksh 13 8.67%

2 Vasu 46 30.67%

3 Ashika 1 0.67%

4 Cycle Pure 72 48%

5 Gopika 2 1.33%

6 Ullas 3 2%

7 Mangaldeep 2 1.33%

8 Padmini 1 0.67%

9 Shantala 2 1.33%

10 Jettappa 2 1.33%

11 Other 6 4%


Graph: 10


Analysis: Above table shown that out of 150 respondents, 8.67% of respondents are using

Moksh, 30.67% of respondents are using Vasu, 0.67% of respondents are under using Ashika,

48% of respondents are using Cycle Pure, 1.33% of respondents are under using Gopika, 2% of

respondents are using Ullas, 1.33% of respondents are using Mangaldeep, 0.67% of respondents

are using Padmini, 1.33% of respondents are under using Shantala, 1.33% of respondents are

using Jettappa, and 4% of respondents are using Other Brands.

Interpretation: From the above analysis easily tell Cycle Pure Agarbattis are the Market Leader

in Mysore Market and Major Competitor is Vasu Agarbattis and other brands are not a problem

to Cycle Pure Agarbattis.

Table 15: The reason for using the above product by Respondents.


1 Price 6 4%

2 Good quality 65 43.33%

3 Fragrance 72 48%

4 Easy availability 5 3.33%

5 Good packaging 2 1.34%


Graph: 11

9%

31%

1%

48%

1% 2%

1% 1%

1% 1%

4%

The agarbatti product Respondents are used daily

1 Moksh

2 Vasu

3 Ashika

4 Cycle Pure

5 Gopika

6 Ullas

7 Mangaldeep

8 Padmini

9 Shantala

10 Jettappa



Price, 43.33% of respondents are looking for Good quality , 48% of respondents are looking for

Fragrance, 3.33% of respondents are looking for Easy availability, and 1.34% of respondents are

looking for Good packaging.

Interpretation: While purchasing the agarbatti product consumer only wants a Good Quality

and Fragrance. Because the Indian consumers will not worry on price when it comes to their

religious purpose.

Table 16: The purchase point of agarbatti product by Respondents


1 Dealers point 4 2.66%

2 Retail point 118 78.67%

3 Retail super market 16 10.66%

4 Company outlet 5 3.34%

5 Pan shop 3 2%

6 Pooja outlet 3 2%

7 Other 1 0.67%


Graph: 12

0

20

40

60

801 Price

2 Good quality

3 Fragrance4 Easy availability

5 Good packaging

The reason for using the above product by Respondents

Respondent

Respondent %


Analysis: Above table shown that out of 150 respondents, 2.66% of respondents are purchasing

from Dealers point, 78.67% of respondents are purchasing from Retail point, 10.66% of

respondents are purchasing from Retail super market, 3.34% of respondents are purchasing from

Company outlet, 2% of respondents are purchasing from Pan shop and 2% of respondents are

purchasing from Pooja outlet and 0.67% of respondents are purchasing from Other source.

Interpretation: The major part of consumers will prefer Retail outlet to purchase the agarbatti

product. Because it‟s near to consumer home or credit facility by retailer, some of the factor will

influence the consumers to purchase in Retail outlet. And new trend of Retail Super Market is

growing purchase point.

Table 17: The usage of Cycle Pure agarbatti by Respondents


Graph: 13

4

118

16

5

3

3

1

2.66%

78.67% 10.66%

3.34%

2%

2%

0.67%

0 20 40 60 80 100 120 140

Dealers point

Retail point

Retail super market

Company outlet

Pan shop

Pooja outlet

Other

12

34

56

7The purchase point of agarbatti product by Respondents

Respondent %

Respondent

SL. no Usage Respondent Respondent %

1 Yes 138 92%

2 No 12 8%


Analysis: Above table shown that out of 150 respondents, 92% of respondents are used Cycle

Pure agarbattis, 8% of respondents are not used Cycle Pure agarbattis.

Interpretation: From the survey all the consumers are know about the Cycle Pure agarbattis but

only few consumers are not used because they are brand loyal to compeititor company and

remaining consumers are used Cycle Pure Agarbattis.

Table 18: From how many years Respondents are using Cycle Pure agarbattis

Sl No Years Respondent Respondent %

1 1 – 12 Months 59 39.33%

2 1 – 3 Years 33 22%

3 3 – 5 Years 13 8.67%

4 5 Years and above 33 22%

5 Not used 12 8%


Graph: 14


1 Yes 138 92%

2 No 12 8%

138

92%

12

8% 0

20

40

60

80

100

120

140

160

Axi

s Ti

tle

The usage of Cycle Pure agarbatti by Respondents


Analysis: Above table shown that out of 150 respondents, 39.33% of respondents are using from

1 – 12 Months, 22% of respondents are using from 1 – 3 Years, 8.67% of respondents are using

from 3 – 5 Years , 22% of respondents are using from 5 Years and above , and 8% of

respondents are not used.

Interpretation: The consumers who are using from past 5years and above and 3-5years are

brand loyal to Cycle Pure agarbattis and the consumers using from last 1-3years are shifted from

other brands and the consumers who are using from 1-12months are frequently changing the

brands.

Table 19: Ranking given by the Respondents for different attributes of Cycle Pure

Agarbattis

Particulars Ranking

Agarbatti

Number of

Respondents

Weighted

Average

Strongly Agree 5 56 280

Agree 4 47 188

Neither Agree Nor Disagree 3 25 75

1 1 – 12 Months 59, 39.33%

2 1 – 3 Years 33, 22%

3 3 – 5 Years 13, 8.67%

4 5 Years and above 33, 22%

5 Not used 12, 8%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

0 1 2 3 4 5 6

From how many years Respondents are using Cycle Pure

agarbattis

Respondent %


Disagree 2 10 20

Strongly Disagree 1 12 12

Total 150 575


Weighted Average

3.833

Graph: 15

Analysis: Above table shown that out of 150 respondents, 37.33% of respondents are ranked

Strongly Agree, 31.33% of respondents are ranked Agree , 16.67% of respondents are ranked

Neither agree nor disagree , 6.67% of respondents are ranked Disagree , and 8% of respondents

are ranked Strongly disagree.

Interpretation: Majority of the consumers are strongly agreed for Cycle Pure Agarbattis.

Because they regularly using the brand. Some consumers who are shifted from other brand are

agree with Cycle Pure Agarbattis. Some of consumers are Price sensitive‟s those are falls under

neither agree nor disagree. Few consumers are disagree because they are only one or two times

used the Cycle Pure Agarbattis. And those consumers are not used Cycle Pure Agarbattis are

strongly disagree with Cycle Pure Agarbattis.

Table 20: The product of Cycle Pure agarbattis Respondents are using

56 47

25 10 12

150 0

3.833

280

188

75 20 12

575

1 2 3 4 5 6 7 8

0

100

200

300

400

500

600

700

Ranking given by the Respondents for different

attributes of Cycle Pure Agarbattis

Particulars Ranking

Agarbatti Number of Respondents Agarbatti Weighted Average



1 3 in 1 105 70%

2 All in 1 8 5.33%

3 Moods 8 5.33%

4 Natya kesari 10 6.67%

5 Lia 15 10%

6 Rhythm 3 2%

7 Woods 1 0.67%

8 Other - -


Graph: 16

Analysis: Above table shown that out of 150 respondents, 70% of respondents are using 3 in 1,

5.33% of respondents are using All in 1, 5.33% of respondents are using Moods, 6.67% of

respondents are using Natya kesari, 10% of respondents are using Lia, 2% of respondents are

using Rhythm, 0.67% of respondents are using Woods.

Interpretation: From the survey most of the consumers are using 3in1 brand of agarbattis,

because of the best cost and quality product. And Lia is one more brand most of the consumers

will prefer.

Table 21: The sources helped to Respondents to know about Cycle Pure agarbattis.

Sl No Sources Respondent Respondent %

1 Friends 17 11.33%

2 Newspaper 3 2%

70% 5%

5%

7%

10% 2% 1%

The product of Cycle Pure agarbattis Respondents are

using

1 3 in 1

2 All in 1

3 Moods

4 Natya kesari

5 Lia

6 Rhythm


3 TV 52 34.67%

4 FM - 0%

5 Tried and used 55 36.67%

6 Market 8 5.33%

7 Retailer preference 3 2%

8 Not used 12 8%


Graph: 17

Analysis: Above table shown that out of 150 respondents, 11.33% of respondents are know from

Friends, 2% of respondents are know from Newspaper , 34.67% of respondents are know from

TV, 36.67% of respondents are Tried and used , 5.33% of respondents are know from Markets,

2% of respondents are know by Retailer preference, and 8% of respondents are not used.

Interpretation: The word of mouth advertisement is very strong in Cycle Pure agarbattis. TV

ads are positioned in the minds of consumers and major portion of consumers once tried with

Cycle Pure Agarbattis and they are satisfied with the brand and using the brand. And Retailer

preference.

Table 22: The overall grade for Cycle Pure agarbatti by Respondents.

Sl No Grade Respondent Respondent %

1 Excellent 36 24%

0 10 20 30 40 50 60

Friends

Newspaper

TV

FM

Tried and used

Market

Retailer preference

Not used

12

34

56

78

17

3

52

0

55

8

3

12

11.33%

2%

34.67%

0%

36.67%

5.33%

2%

8%

The sources helped to Respondents to know about Cycle Pure

agarbattis

Respondent %

Respondent


2 Very good 52 34.66%

3 Good 46 30.67%

4 Average 4 2.67%

5 Poor ( Not used ) 12 8%


Graph: 18

Analysis: Above table shown that out of 150 respondents, 24% of respondents are Graded

Excellent, 34.66% of respondents are Graded Very good, 30.67% of respondents are Graded

Good, 2.67% of respondents are Graded Average, and 8% of respondents are Graded Poor.

Interpretation: From the survey the many consumers are saying Cycle Pure agarbattis are

Excellent, very good. Good. Only few consumers who are just shifted to Cycle Pure agarbattis

from other brand are saying average. And those consumers who are not used Cycle Pure

agarbattis are saying poor.

24%

34.66%

30.67%

2.67%

8%

-0.1

-0.05

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0 1 2 3 4 5 6

Axi

s Ti

tle

The overall grade for Cycle Pure agarbatti by Respondents

Grade

Respondent %


Table 23: The awareness about premium agarbattis by Respondents.


Graph: 19

Analysis: Above table shown that out of 150 respondents, 12% of respondents are aware about

Premium agarbattis, 88% of respondents are not aware about Premium agarbattis.

Interpretation: From the survey only little number of consumers is aware about the premium

agarbattis. Large numbers of consumer is don‟t know about premium agarbattis.

Respondent, 18

Respondent %, 12%

Respondent, 132

Respondent %, 88%

0 0.5 1 1.5 2 2.5

The awareness about premium agarbattis by Respondents.

1 Yes 2 No

SL. no Awareness Respondent Respondent %

1 Yes 18 12%

2 No 132 88%


Table 24: The attributes is looking in premium agarbattis by Respondents


1 Price 6 33.33%

2 Good quality 4 22.23%

3 Fragrance 8 44.44%

4 Easy availability - 0%

5 Good packaging - 0%


Graph: 20


Price, 22.23% of respondents are looking for Good quality, and 44.44% of respondents are

looking for Fragrance.

Interpretation: The consumers who know about premium agarbattis are looking for Fragrance

attribute in the agarbatti product and the same time looking for Good Quality and Price also.

6 4 8 - -

PriceGood

qualityFragrance

Easyavailability

Goodpackaging

1 2 3 4 5

Respondent % 33.33% 22.23% 44.44% 0% 0%

33.33%

22.23%

44.44%

0% 0% 0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

Axi

s Ti

tle

The attributes is looking in premium agarbattis by Respondents


CHAPTER: 5

MAJOR FINDINGS, SUGGESTIONS & CONCLUSIONS:

Findings:

1) The Cycle Pure is the market leader in Mysore market & major competitor is Vasu

agarbatti.

2) We came to know that, the consumers who are earning 200000 and above per year they

prefer for the Cycle pure Brand agarbatti.

3) Hindu consumers are preferring agarbatti for their Part of Pooja.

4) Many Christian religious people will also use agarbatti for fragrance purpose.

5) The agarbatti‟s are essential for consumers at the time of Pooja, so they will not think

about the price because Indian consumers will give high value to their religious aspects

so price is not a matter to them.

6) The consumer only wants good quality and fragrance of agarbatti.

7) Many consumers are brand loyal for Cycle Pure agarbatti and also for Vasu agarbatti and

they don‟t want to change their brands.

8) The major parts of consumers are buying Cycle Pure Brand in the retail outlet therefore

retailer plays an important role.

9) Many of the consumers are using Cycle Pure agarbatti from past 1 year they are just

shifted from other brand and many of them are using from past 5 years and they are brand

loyal to Cycle Pure agarbatti‟s.

10) The fast moving Cycle Pure brand is 3 in 1 and its cost is 10Rs for 30 Gms and 12Rs for

35gms. Therefore company is using best cost provider strategy here.

11) On the basis of survey 34.67% of consumers are influenced by TV advertisement and

36.67% of consumers are tried once and using now. Word of mouth about Cycle pure

brand is Very good and rest influencing sources is not accurate.

12) Only 12% of consumers are known about premium agarbattis.


Recommendations &Suggestions:

1) Advertising can be done in all mediums like TV, Radio, and Magazines. .etc. . . . . On the

whole effective advertising in the media is necessary. The advertisement should develop

a purchase intension in the minds of the viewers.

2) To make the buyers more loyal towards the brand, give more discounts and offers have to

be provided for e.g.: if u can give a coupon inside the pack of Agarbatti, if ten coupons are

collected one pack can be given free or any small gifts can be given. Such offers may

develop a brand loyalty towards Cycle Pure.

3) Product proliferation: introduce the products with lots of variety, this will give the buyer

more choice for e.g.: Lia, Bansuri, Rhythm etc…

4) Offer sample packs to all outlets so that the product gains awareness.

5) Sample packs can also be given with some local magazines which are being sold.

6) The sticks must be more thick and The chemicals used in incense stick will not attach to

the consumer hands

7) Many competitors are providing 1Rs and 2Rs packets with 4 or 6 sticks for a day use

therefore company can grab that opportunity.

8) Company should give more important on quality because some of the incense sticks will

not burn fully and in the middle itself it will off so company has improve on quality.

9) Increase the quantity of agarbatti packets of 10Rs and 12Rs.


CONCLUSION

The research on “Consumer Satisfaction Level towards Cycle Pure Agarbattis” was

conducted as a part of the MBA course. During the research the respondent‟s positive response

helped me to do the research effectively. The research work helped me to give an insight on

Consumer Satisfaction on Cycle Pure Agarbattis in Mysore city.

By the survey it is found that Cycle Pure agarbattis are the market leaders in Mysore city.

And the local brands now in the introduction stage they are giving 100sticks for 20Rs that will be

a problem to the company. But company has huge number of loyal consumers. The major

competitor is Vasu agarbattis. Retailer preference at the time of selling a agarbatti product is

plays a very important role because 78.67% of consumers are buying from the retail point. And

the majority of the consumers only looking at Good quality and Fragrance.

It was found that Cycle Pure agarbattis doing well in the market and have to continue the

same quality of product to consumers.


ANNEXURE 1. QUESTIONNAIRE


Questionnaire

Dear Sir/Madam

I am pleased to introduce myself as KARTHIKKUMAR.B.A a student pursuing MBA

at P.G. Department of Management Studies & Research Centre, PESITM, Shivamogga have

undertaken a project on “CONSUMER SURVEY ON CYCLE PURE AGARBATTIS” in

MYSORE. This research has been undertaken as a part of MBA curriculum of Visvesvaraya

Technological University, Belgaum. Hence, I request you to provide complete information. I

assure you that the information provided by you will be kept highly confidential and used only

for academic purpose.

Thanking you

KARTHIKKUMAR.B.A

( IV SEM, MBA )

Name & Address of Respondent: - _______________________________________

_______________________________________

_______________________________________

_______________________________________

Phone no: - _______________________________________

Gender: - A) Male B) Female

Age group: - A) Below 25 years B) 26-35 years C) 36-45 years

D) 46-55 years E) 55 & above

Occupation: - A) Business/Entrepreneur F) Housewife

B) Govt employee G) If any other, Please specify

C) Employee in private organization _____________________

D) Retired person

E) Agriculturist


Education: - A) Post Graduate B) Under Graduate

C) PUC D) SSLC

E) Below SSLC

Annual income: -

A) Below 10000/Rs B) 10000/Rs – 25000/Rs

C) 25000/Rs – 50000/Rs D) 50000/Rs – 75000/Rs

E) 75000/Rs – 100000/Rs F) 100000/Rs – 150000/Rs

G) 150000/Rs – 200000/Rs H) 200000 & above

1) Festivals you celebrate:

A) Diwali B) Ganesha pooja C) Id-Ul-Fitr D) Christmas

E) Suggest if any other _________________

2) How many Agrabatti sticks does your family use in a day? ___________

3) Usage of Agarbatti

A) Religious purpose B) Fragrance purpose C) Part of pooja

4) Total amount spent on Agarbatti in a month?

A) 10-20Rs B) 20-30Rs C) 30-50Rs D) 50-75Rs

E) 75-100Rs F) 100 & Above

5) What are the attributes you are looking for in the Agarbattis?

A) Price B) Good quality C) Fragrance

C) Easy availability E) Good packaging

6) Please mention the Agarbatti product you use daily?

A) Moksh Agarbattis B) Vasu Agarbattis C) Ashika Agarbattis

D) Cycle Pure Agarbattis E) Gopika Agarbattis F) Ullas Agarbattis

F) Mangladeep G) Padmini Agarbattis H) Shantala Agarbatti

I) Jetappa Agarbattis J) If any other please specify__________________


8) Reason of using that product?

A) Price B) Good quality C) Fragrance D) Easy availability

E) Packaging F) Any other ________________

9) Please mention the purchase point for the Agarbatti packets?

A) Dealers point B) Retail point C) Retail super markets

D) Company outlet E) Pan shop F) Pooja outlet

E) Any other________________

10) Have you ever used Cycle pure Agarbatti?

A) Yes B) No

11) Since from when are you using Cycle pure Agarbatti?

A) 1-12 Months B) 1-3Years C) 3-5Yeras D) 5Years & Above

12) For the attributes given below kindly give your response for the products, on a scale of 1-5

( Where 1- high, 5-low )

13) Mention the products of Cycle pure Agarbatti you used?

Cycle Brand Agarbattis

Rank 1 2 3 4 5

Price

Quality

Fragrance

Packaging

Easy Availability

Products

3 in 1

All in 1

Moods


If any other products please specify:

_____________________________

14) Which are the sources helped you to know about the Cycle pure brand Agarbattis?

A) Friends B) Newspaper C) TV D) FM

E) If any other please specify____________________________

15) Overall please grade the quality of Cycle pure brand Agarbattis?

A) Excellent B) Very Good C) Good D) Average

E) Poor

16) Are you aware of Premium Agarbattis?

A) Yes B) No

17) If Yes, What are the attributes you are looking for in the premium brand?

A) Price B) Good quality C) Fragrance

C) Easy availability E) Good packaging

18) Do you have any suggestion/observation for the Cycle pure Agarbattis?

A) Yes B) No

If yes, please feel free to write: - _______________________________________________

_____________________________________________________________________

_____________________________________________________________________

Thank you very much for your time and information.

Signature of the Respondent

………………………………

KARTHIKKUMAR.B.A

Natya kesari

Lia

Rhythm

Woods

Consumer satisfaction level towards CYCLE PURE AGARBATTIS

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