A PROJECT REPORT ON “STUDY ON FACTORS INFLUENCING BUYING BEHAVIOUR OF DEL MONTE FRUIT DRINKS” SUBMITTED BY: RAJESH GUPTA REGESTRATION NO: 11000194 ROLL NO.RQ3003A19 IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE IN MASTER OF BUSINESS ADMINISTRATION INTERNAL GUIDE EXTERNAL GUIDE Mr. VIVEK CHATURVEDI Mr. VIJAY KUMAR (ASM) MBA DEPARTMENT, Mr. NITHIN RAJAGOPAL 1
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A PROJECT REPORT ON
“STUDY ON FACTORS INFLUENCING BUYING BEHAVIOUR OF DEL MONTE
FRUIT DRINKS”
SUBMITTED BY: RAJESH GUPTA
REGESTRATION NO: 11000194
ROLL NO.RQ3003A19
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF
THE DEGREE IN
MASTER OF BUSINESS ADMINISTRATION
INTERNAL GUIDE EXTERNAL GUIDE
Mr. VIVEK CHATURVEDI Mr. VIJAY KUMAR (ASM)
MBA DEPARTMENT, Mr. NITHIN RAJAGOPAL
(MARKETING MANAGER)
LOVELY PROFESSIONAL UNIVERSITY
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LOVELY PROFESSIONAL UNIVERSITY
CERTIFICATE
This is to certify that RAJESH GUPTA, student of M.B.A. (3rd semester) Regd. No. 11005485, Section – Q3003, Roll No. RSQ3003A19, Lovely School of Management, has successfully completed the Summer Internship Project titled “Study on “FACTORS INFLUENCING BUYING BEHAVIOUR OF DEL MONTE FRUIT DRINKS”
at Field Fresh Foods Pvt. Ltd., Bangalore as a part of partial fulfillment of the
curriculum of M.B.A. This project had being done under my guidance for a period of two
months during the year 2011.
Mr. VIVEK CHATURVEDI
FACULTY GUIDE
SCHOOL OF MANAGEMENT
LOVELY PROFESSIONAL UNIVERSITY
ACKNOWLEDGMENT
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It gives me great pleasure to acknowledge with thanks, my respectful and beloved ones for
helping me to bring out this report successfully.
Firstly and foremost I would like to thank with immense gratitude Mr.VIVEK
CHATURVEDI SIR the professor of lovely professional university and MR.DEVDHAR
SHETTY SIR the HOD & professor of MBA (LSM) department for helping to undertake
this study.
I express my heartfelt thanks to Mr. VIJAY KUMAR (ASM) and
Mr. NITHIN RAJAGOPAL (SOUTH MARKETING MANAGER) for being my
external guide and helping me to avail the opportunity to carry out this study. His constant
guidance during my stay in the company was great help to me. I would also like to thank
the department heads for extending their undivided support and co-operation.
I have immense pleasure in expressing my deep sense of gratitude to
Mr. SONU DUA and Mrs. MANNU KALIA faculty of MBA department for his valuable
guidance, time, co- operation and support without which this report would not have been
completed.
RAJESH GUPTA
Reg. no. 11000194
Roll no. RSQ3003A19
TABLE OF CONTENTS
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EXECUTIVE SUMMARY
TITLE AND DESCRIPTION OF PROJECT
OBJECTIVES OF THE PROJECT
LITERATURE REVIEW
RESEARCH METHODOLOGY
SAMPLING FRAME
INTRODUCTION
INDUSTRIAL PROFILE
COMPANY PROFILE
COMPANY LIFE CYCLE
COMPETITIVE ANALYSIS
SWOT ANALYSIS OF COMPANY
ANALYZING BHARTI DEL MONTE ON THE BASIS OF ANSOFF’S MATRIX
MARKET SEGMENTATION
LEARNING EXPERIENCE
FACTOR ANALYSIS
FINDINGS AND CONCLUSION
SUGGESTION AND RECOMMENDATION
BIBLIOGRAPHY
QUESTIONNAIRE
SURVEY REPORT OF BANGLORE (JAYANAGAR)
EXECUTIVE SUMMARY4
This paper studies the fruit juice market in the INDIA. The market has experienced
significant growth in recent years primarily owing to the craze toward health-food
consumption. However, the relatively higher prices of fruit juices compared to other types
of beverages have limited the consumer base to a small percentage of the population.
Furthermore, various factors such as high packaging costs, seasonality and unavailability
of raw materials, and inadequate transportation facilities have greatly affected the growth
of the fruit juice industry. Facing intense competition from imported products and other
types of beverages like carbonated drinks and bottled water, domestic manufacturers must
continuously find ways to improve quality or reduce costs in order to stay competitive
locally as well as globally. This is also very important to the export market as the country
is a net exporter of fruit beverages. Being an agricultural country, domestic producers must
capitalize on the country. As competitive edge of land availability, abundant supply and
variety of locally-grown tropical fruits and the adequate supply of skilled and competent
labor to tap the domestic and world market.
This project is an attempt to explore the consumer dynamics: consumer taste and
preference role of these fruits drinks in the lives of people, perception of various brands of
nutritional fruits drink among consumers, their knowledge level about the product s and the
effect of 4 Ps ( product ,price ,place and promotion) on them.
This project includes industry profile, company profile, SWOT analysis, ansoff matrix and
learning experience and deal with the statement of the problem. Analysis and finding of the
survey.
A sample size of 100 respondents was taken for the studies, whose responses were studied
and interpreted. A simple random method is used for sampling purpose. The process of
analysis was done through spss; excel work sheets, frequency table, percentage analysis
etc, A structured questionnaire is used for interviewing the respondents. We have used
continuous rating scale in order to rate the choices for purchase considerations and the
source of purchase decisions. Bangalore (jayanagar) is the target area for the survey.
Title of the Study : SURVEY ON FACTORS INFLUENCING BUYING
BEHAVIOUR OF DEL MONTE FRUIT DRINKS
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DESCRIPTION OF THE PROJECT
Bharti Delmonte (field fresh pvt.ltd) processed food division which has been launched in
highly volatile market condition, in an unpredictable market like India, needs to identify its
Target customer and understand their reason for using packaged drinks efficiently, to stand
the competition from existing players. It also has to plan its communication strategy basing
on customer need and their prospective.
Bharti Delmonte processed food division which has been launched in highly volatile
market condition, in an unpredictable market like India, needs to identify its Target
customer and understand their reason for using packaged drinks efficiently, to stand the
competition from existing players. It also has to plan its communication strategy basing on
customer need and their prospective.
The project majorly includes the study under following headings keeping in mind the key
Areas of consideration which are relevant to the project:
A) Competitive analysis:
For the fulfillment of pertinent study and to understand effectiveness of marketing
program, competitive analysis of various market players in FMCG tinned foods division is
an essential as well as effective tool to generate and improve various analytical and
innovative ideas required to differentiate the organization from other market players.
B) Consumer Behaviour
The behavior exhibited buy consumer during the different stages like pre buying, buying,
post buying is important to understand for companies in order to place its product properly
and to target right kind of market.
C) Promotions:
Promotions deals with how a company promotes itself or its
Products via
1) Advertising
OBJECTIVES OF THE PROJECT
Research objective
To check the awareness of Del monte fruit drinks at jayanagar(Bangalore).6
To determine the factors influencing the buying behavior of Del Monte fruit drinks.
To determine the reasons for consuming various fruit drink brands.
LITERATURE REVIEW
Gluckman.V (1986) studied the factors influencing consumption and preference for fruit
drinks. The explicit factors identified were, the familiarity with brand name, the price of
fruit drinks, quality or the mouth feel of the liquid, taste with regards to its sweetness or
dryness and the suitability for all tastes. Some of the implicit factors identified through
extensive questioning were, color and appearance. Packaging, appearance, colour, , use of
different taste and graphics were taken as important clues for quality and price. Consumers
preferred existent brand fruits drinks
.Kumar et al. (1987) examined the factors influencing the buying decision making of 200
respondents for various food products. Country of origin and brand of the products were
cross-tabulated against age, gender and income. Results revealed that the considered
factors were independent of age, education and income. The brand image seemed to be
more important than the origin of the product, since the consumers were attracted by the
brands.
Jorin (1987) examined changes in spending power and buying habits of Swiss consumers
since the beginning of the 20th century and in the more recent past. Current trends include
greater emphasis on health and safety of foodstuffs and less attention to price, increased
demand for low calorie light products and increased demand for organically grown foods.
For young people, more concern with enjoyment and less for health, with more meals eaten
away from home, and generally an increased demand for convenience foods. The Prospects
for high quality branded products are seen to be good.
Puri and Sangera (1989) conducted a survey to know the consumption pattern of
processed products in Chandigarh. Jam was found to be most popular irrespective of
income. Orange squash consumption was maximum in high and middle-income families.
Pineapple juice consumption increased with a rise in the income. 7
Shanmugasundaram (1990) studied about soft drink preference in Vellore town of north Arcot district in Tamil Nadu. The study revealed that, the most preferred soft drink among respondents as Gold Spot (26%), followed by Limca (24.80%). It was found that taste was the main factor for preference of particular brand and among the media; television played a vital role in influencing consumer to go for particular brand. Because of convenience in carrying, tetra pack was most preferred one.
Ali (1992) studied the brand loyalty and switching pattern of processed fruit and vegetable products in Bangalore city by using Markov Chain analysis. The result of study revealed that Kissan brand of jam and Maggi brand of ketchup had a maximum brand loyalty among consumers, and less amount of brand switching occurred for these brands.
Sabeson (1992) in his study stated that, high quality, price and taste of the product were
the major criteria based on which the consumers selected a brand of processed fruits and
vegetable products.
Rees (1992), in his study revealed that factors influencing the consumer’s choice of food
are flavour, texture appearance, advertising a reduction in traditional cooking,
fragmentation of family means and an increase in ‘snacking’. etc. Demographic and
household role changes and the introduction of microwave ovens have produced changes
in eating habits. Vigorous sale of chilled and other prepared foods is related to the large
numbers of working wives and single people, who require and value convenience.
Development in retailing with concentration of 80% of food sales in supermarkets is also
considered to be important. Consumers are responding to messages about safety and health
eating. They are concerned about the way in which food is produced and want safe,
‘natural’, high quality food at an appropriate price.
Beverland (2001) analyzed the level of brand awareness within the New Zealand
market for ZESPRI kiwi fruit. The effectiveness of this branding strategy employed by
kiwi fruit, New Zealand was studied. The implications of the findings for agribusiness in
general using the data collected from surveys of kiwi fruit consumers (n=106) outside three
major super market chains in Auckland, New Zealand, the results suggested that the level
of brand awareness for ZESPRI is low among consumers. It is indicated that brand
awareness could be increased through a relationship-making programme involving targeted
marketing and supply chain management.
Nandagopal and Chinnaiyan (2003) concluded that the level of awareness among the
rural consumers about the brand of fruit drinks was high which was indicated by the mode
of purchase of the soft drinks by “Brand Name”. The major source of brand awareness
word of mouth followed by advertisements, family members, relatives and friends.
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Importance of Information to Company
This report aims to generate information on various factors influencing consumer
decision while purchasing a fruit drink. Company can evaluate their positioning and
promotion strategies based on the factors influencing the choice of a particular fruit drink
brand. Companies can also utilize the factors influencing the choice of SKU for managing
their portfolio of different SKUs in the fruit drink category. The information on factors
influencing the choice of a channel can be used to focus on the growing channels and also
in managing existing channels. This report also contains broad based trends on consumer
profile, awareness levels, usage patterns and fruit drink category as a whole which can be
utilized to make inferences about the future.
RESEARCH METHODOLOGY
Primary Research- Primary data was collected through questionnaires, which were filled
by consumers.
Secondary Research-External secondary data has been generated to obtain volume of
sales regarding beverage markets, fruit drinks, each of the brands and the positioning of
each of the brands.
Sampling frame:-
Target Population:-
Age targeted between 15 years to 55 years.
Location
jayanagara(Big bazaar), Banglore.
Sample design:-
Sampling method:-
Simple random sampling, convenience sampling.
Samples9
The aim is to collect 100 samples for the analysis.
The main demographics targeted were the younger age group as they are more health
conscious and aware of such health drinks.
Buyers who have been consuming fruit drinks were better able to answer the questions
regarding the influencing factors and the reasons for their consumption and purchase.
Analysis Techniques
· The analysis techniques to be used have been on SPSS and the tests will be performed to
ascertain the factors influencing the consumer decision while buying fruit drinks. Factor
analysis will be conducted to find main factor influencing the buying behavior of Del-
Monte fruit drinks.
INTRODUCTION
The packaged fruit drink industry in India have a history of 24 years,it all started in 1984
with launch of Parle Frooti in tetra pack, but the real surge in packaged fruit drink industry
came in 1996 when Dabur captured the imagination of young Indian consumer with the
launch of Real Fruit juices-a new concept in the India food market. Since then the industry
have been developing gradually and seeing entry of numerous new player with varied
flavours and promotions to lure ever growing Indian consumers.
The branded fruit juice market in India is estimated to be worth Rs 1200 crore organized
fruit beverage market (nectars, drinks and juices combined).
INDUSTRIAL PROFILE
Food processing industry in India
India is one of the world’s major food producers but accounts for less than 1.5 per cent of international food trade. This indicates vast scope for both investors and exporters. Food exports in 1998 stood at US $5.8 billion whereas the world total was US $438 billion.
The industry requires about Rs 29,000 crore in investment over the next five years to 2005 to create necessary infrastructure, expand production facilities and state-of-the-art-technology to match the international quality and standards.
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The Indian food industry’s sales turnover is Rs 140,000 crore (1 crore = 10 million) annually as at the start of year 2000.
India’s food processing sector covers fruit and vegetables; meat and poultry; milk and milk products, alcoholic beverages, fisheries, plantation, grain processing and other consumer product groups like confectionery, chocolates and cocoa products, Soya-based products, mineral water, high protein foods etc.
Propelled by the increasing disposable income, the food sector has been witnessing a marked change in consumption pattern. Currently, India is the world’s second largest producer of food in the world and the food processing industry is the one of the largest industries in India. In terms of production, consumption, export and expected growth, India is ranked fifth in the world.
India’s food industry is valued at US$ 180 billion of which the food processing industry is estimated at US$ 67 billion, according to a report ‘Food Processing and Agri Business’, done by KPMG.
The industry size has been estimated at US$ 70 billion by the Ministry of Food Processing, Government of India.
The food processing industry contributed 6.3 per cent to India’s GDP in 2003 and had a share of 6 per cent in total industrial production.
The industry employs 1.6 million workers directly. The industry is estimated to be growing at 9-12 per cent during the period 2002 to 2007. Value addition of food products is expected to increase from the current 8 per cent to 35 per cent by the end of 2025.
Fruit & vegetable processing, which is currently around 2 per cent of total production will increase to 10 per cent by 2010 and to 25 per cent by 2025.
The highest share of processed food is in the dairy sector, where 37 per cent of the total produce is processed, of this only 15 per cent is processed by the organized sector. The food processing industry in the country is on track to ensure profitability in the coming decades. The sector is expected to attract phenomenal investments of about Rs 1,400 billion in the next decade.
Exports
Food Park, the government has also extended several fiscal incentives Exports of agricultural products from India are expected to cross around US$ 22 billion mark by 2014 and account for 5 per cent of the world’s agriculture exports, according to the Agricultural and Processed Food Products Export Development Authority (APEDA).
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Exports of floriculture, fresh fruits and vegetables, processed fruits and vegetables, animal products, other processed foods and cereals stood at Rs 17728.71 from September 2010-2011, according to DGCIS annual data published by APEDA.
India will be setting up a global platform for spice trade. The organization named World Spice Organisation (WSO) will be headquartered in the Kochi, Kerela. Spice related organizations across the world will be coordinating prices across the world and address the issue of food safety regulations through WSO.
Food Processing
FDI inflows to Food Processing Industries have set a target of USD 25.07 billion to be achieved by 2015.
Food processing industry is accounts for 32 per cent share in the entire food industry. It comprises of 2 per cent of fruits and vegetables and 15 per cent of processed milk. This industry contributes to 6.3 per cent of the GDP and about 13 per cent to export production. The food processing industry is expected to witness a growth of 10 per cent in the recent years to come.
The food processing sector attracted US$ 130 million of foreign direct investment (FDI) in the first eight months of the fiscal as compared to total FDI of US$ 1.2 billion.
Besides attracting FDI through schemes like mega during this financial year to enhance FDI in food processing sector, including full exemption from excise duty for specified equipments to preserve, store or transport apiary, horticultural, dairy, poultry, aquatic and marine produce and meat and its processing products.
COMPANY PROFILE
HISTORY
Our heritage is as rich and vibrates as our products .Dedication to quality, commitment to consumers and a focus on innovation are deeply embedded in the Del Monte foods culture.
1880-90
The Del Monte name premieres while the exact origin of “del Monte’’ is lost to lore ,the name was used in the 1880s by an Oakland, California, foods distributor to designate a premium blend of coffee prepared especially for the elegant hotel Del Monte on the Monterey peninsula .
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1920-30
The Delmont Guarantee Calpak establishes stringent quality specifications for its premium brand Del Monte .Early ads assure customers “Not a label, but a guarantee.”
1940-50
Glass packaging is introduced fruits and vegetables in glass introduced.
1960-70
Calpak Becomes Del Monte Corporation. Calpak changes its name to Del Monte Corporation.
2000-10
Sun Fresh Brand is acquired. Worldwide rights to the sunfresh brand of premium citrus and tropical fruits are acquired.
2011
KKR, Vestar and Center view complete Acquisition of Del Monte foods. An investors group led by funds affiliated with Kohilberg Kravis Roberts & CO. L.P Vestar Capital Partners and center view capital, L.P acquires Del Monte Foods.
Company:- Bharti Del Monte India Pvt Ltd.(FIELD FRESH PVT. LTD)
Bharti Del Monte India Private Limited incorporated in September 2004, is a joint venture
between Bharti Enterprises and Del Monte Pacific Limited., which offers fresh fruits &
vegetables and processed foods and beverages in the domestic as well as international
markets. Bharti Del Monte India Pvt Ltd., in the `fresh` foods category is the largest Indian
exporter of Babycorn and is also engaged in providing `safe`, fresh and hygienic fruits and
vegetables in `convenient` formats to food service and modern retail segments in the
domestic market under the Field Fresh brand. The company has recently entered in the
`processed` foods category by launching Del Monte brand in India with a promise to offer
the consumers innovative products in foods and beverages – combining great taste and
goodness of health.
BACKGROUND AND INCEPTION OF THE COMPANY
Field Fresh Foods is a joint venture between Bharti Enterprises and Del Monte Pacific
Limited to offer Del Monte branded processed food and beverage products in India and
field fresh branded fresh fruits and vegetables in India and other countries. With a range of
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superior tasting products and the synergy between Bharti’s dynamism and Del Monte
Pacific’s food business experience, Field Fresh Foods looks forward to becoming the
leading and most trusted food company in India.
NATURE OF THE BUSINESS CARRIED
Field fresh Pvt. Ltd is a fully integrated private LTD. Company.
Principle business lines include:
INFRASTRUCTURE:- BHARTI DEL MONTE PVT.LTD.COMPANY is a joint venture
between two company its head branch or office is in the Philippines where it enjoys
leading market shares for canned pineapple juice and juice drinks, canned pineapple and
tropical mixed fruits, tomato sauce, spaghetti sauce and tomato ketchup.
ON GOING PROJECTS
Operating under the brand name “Field fresh” the venture will also invest in research and
development (R&D) in a 300-acre company-owned land in Punjab.
VISION, MISSION AND QUALITY POLICY
VISION
To be one of the fastest growing global branded food and beverage companies.
MISSION
To bring to life health and wellness.
• We live up to our heritage of growing premium quality food and beverage brands which
are the top choice of all generations for enjoyable and healthy living.
• We leverage deep market knowledge coupled with technology and innovation to create
and deliver relevant health and wellness breakthroughs to our broad base of customers.
• We continuously build on our knowledge and experience in agriculture, while enhancing
the sustainability of the lands we cultivate.
• We adhere to the highest standards of corporate behavior in our relationships with our
employees, business partners, and the communities around us.
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• We are a benchmark in corporate social responsibility and the preservation of the
environment.
• We build a highly energized, high-performance organization with a strong commitment
to teamwork and to embracing better ways of doing things.