Report

“A PROJECT REPORT ON CONSUMER PREFERENCES INBRANDED ATTA INDUSTRY”

(A Report submitted in partial fulfillment of the Requirements for the Degree of Master of Business Administration in Pondicherry University)

Submitted by:

ANUBHAV DAS

Enrollment No.: 2409360002

MBA: MARKETING

Session- 2010-12

DIRECTORATE OF DISTANCE EDUCATIONPONDICHERRY UNIVERSITY

PONDICHERRY - 605 014.

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Table of Contents1.)Background(Concepts & Industry Analysis) 6-61

Marketing, market Research & Branding 6-49

Industry Analysis 50-61

2.)Objectives & Methodology 62-63

Objectives 62

Methodology 63

3.) Data Analysis & Discussion…………………………………………………… 64-83

4.) Conclusion & Suggestion………………………………………………………84-95

Conclusion……………………………………………………………………………84-94 Suggestion………………………………………………………………………..........95

5.) Questionnaire……………………………………………………………………...96-99

6.) Bibliography………………………………………………………………………....100

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CERTIFICATE

This is to certify that the Project Work titled “A Project Report on

Consumer preferences in Branded Atta Industry” is a bona fide work of

Mr. Anubhav Das, Enrollment No.-2409360002 Carried out in partial

fulfillment for the award of degree of MBA (Marketing) of Pondicherry

University under my guidance. This project work is original and not

submitted earlier for the award of any degree / diploma or associate ship of

any other University / Institution.

Prashant Dutta Gupta

[B.Tech. (IIT Delhi),

PGDBA (IIM Ahmedabad)

FOSTIIMA Business School

Place: New Delhi

Date: 15-05-2011

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DECLARATION

I, Anubhav Das, hereby declare that the Project Work titled "Branded Atta

" is the original work done by me and submitted to the Pondicherry

University in partial fulfillment of requirements for the award of Master of

Business Administration in Marketing is a record of original work done by

me under the supervision of Prof. Prashant Dutta Gupta of FOSTIIMA

Business School.

Enroll No:

Date:

Anubhav DasMBA (Marketing)

Enroll No:

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ACKNOWLEDGEMENT

This project would not have been possible without the kind support and help

of many individuals and I would like to extend my sincere thanks to all of

them.

I am highly indebted to Mr.Prashant Dutta Gupta for his guidance and

constant supervision as well as for providing necessary information

regarding the project & also for his support in completing the project.

I would like to express my gratitude towards my parents & member of

FOSTIIMA Business School for their kind co-operation and encouragement

which help me in completion of this project.

I would like to express my special gratitude and thanks to people for giving

me such attention and time for the questionnaire filling, without which this

project could not have been completed.

My thanks and appreciations also go to my colleague in developing the

project and people who have willingly helped me out with their abilities.

INTRODUCTION TO MARKETING

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Marketing is "the activity, set of institutions, and processes for creating,

communicating, delivering, and exchanging offerings that have value for

customers, clients, partners, and society at large." Marketing is a product

or service selling related overall activities. It generates the strategy that

underlies sales techniques, business communication, and business

developments. It is an integrated process through which companies build

strong customer relationships and create value for their customers and for

themselves.

Marketing is used to identify the customer, satisfy the customer, and

keep the customer. With the customer as the focus of its activities, it can

be concluded that marketing management is one of the major

components of business management. Marketing evolved to meet the

stasis in developing new markets caused by mature

markets and overcapacities in the last 2-3 centuries. The adoption of

marketing strategies requires businesses to shift their focus

from production to the perceived needs and wants of their customers as

the means of staying profitable.

The term marketing concept holds that achieving organizational goals

depends on knowing the needs and wants of target markets and

delivering the desired satisfactions. It proposes that in order to satisfy its

organizational objectives, an organization should anticipate the needs and

wants of consumers and satisfy these more effectively than competitors.

Marketing is further defined by the AMA as an organizational function and

a set of processes for creating, communicating, and delivering value to

customers and for managing customer relationships in ways that benefit

the organization and its stakeholders. The term developed from an

original meaning which referred literally to going to a market to buy or sell

goods or services. Seen from a systems point of view, sales process

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engineering marketing is "a set of processes that are interconnected and

interdependent with other functions, whose methods can be improved

using a variety of relatively new approaches."

The Chartered Institute of Marketing defines marketing as "the

management process responsible for identifying, anticipating and

satisfying customer requirements profitably." A different concept is

the value-based marketing which states the role of marketing to contribute

to increasing shareholder value. In this context, marketing is defined

as "the management process that seeks to maximize returns to

shareholders by developing relationships with valued customers and

creating a competitive advantage."

Marketing practice tended to be seen as a creative industry in the past,

which included advertising, distribution and selling. However, because the

academic study of marketing makes extensive use of social

sciences, psychology, sociology, mathematics, economics, anthropology 

and neuroscience, the profession is now widely recognized as a science,

allowing numerous universities to offer Master-of-Science (MSc)

programmes. The overall process starts with marketing research and

goes through market segmentation, business planning and execution,

ending with pre- and post-sales promotional activities. It is also related to

many of the creative arts. The marketing literature is also adept at re-

inventing itself and its vocabulary according to the times and the culture.

EVOLUTION OF MARKETING

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An orientation, in the marketing context, related to a perception or attitude

a firm holds towards its product or service, essentially concerning

consumers and end-users. Throughout history, marketing has changed

considerably in conjunction with consumer tastes

Earlier approaches

The marketing orientation evolved from earlier orientations, namely, the

production orientation, the product orientation and the selling orientation.

Orientatio

n

Profit

driver

Western

European

timeframe

Description

Production Production

methods

until the

1950s

A firm focusing on a production

orientation specializes in

producing as much as possible of

a given product or service. Thus,

this signifies a firm

exploiting economies of scale until

the minimum efficient scale is

reached. A production orientation

may be deployed when a high

demand for a product or service

exists, coupled with a good

certainty that consumer tastes will

not rapidly alter (similar to the

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sales orientation).

ProductQuality of

the product

until the

1960s

A firm employing a product

orientation is chiefly concerned

with the quality of its own product.

A firm would also assume that as

long as its product was of a high

standard, people would buy and

consume the product.

SellingSelling

methods

1950s and

1960s

A firm using a sales orientation

focuses primarily on the

selling/promotion of a particular

product, and not determining new

consumer desires as such.

Consequently, this entails simply

selling an already existing product,

and using promotion techniques to

attain the highest sales possible.

Such an orientation may suit

scenarios in which a firm holds

dead stock, or otherwise sells a

product that is in high demand,

with little likelihood of changes in

consumer tastes that would

diminish demand.

Marketing Needs and 1970 to The 'marketing orientation' is

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wants of

customers

present

day

perhaps the most common

orientation used in contemporary

marketing. It involves a firm

essentially basing its marketing

plans around the marketing

concept, and thus supplying

products to suit new consumer

tastes. As an example, a firm

would employ market research to

gauge consumer desires, use R&D

to develop a product attuned to the

revealed information, and then

utilize promotion techniques to

ensure persons know the product

exists.

 Distinctions between the Sales Concept and the Marketing Concept

1.         The Sales Concept focuses on the needs of the seller.  The

Marketing Concept focuses on the needs of the buyer. 

2.         The Sales Concept is preoccupied with the seller’s need to convert

his/her product into cash.  The Marketing Concept is preoccupied with the

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idea of satisfying the needs of the customer by means of the product as a

solution to the customer’s problem (needs).

            The Marketing Concept represents the major change in today’s

company orientation that provides the foundation to achieve competitive

advantage.  This philosophy is the foundation of consultative selling. 

Contemporary approaches

Recent approaches in marketing include relationship marketing with focus on

the customer, business marketing or industrial marketing with focus on an

organization or institution and social marketing with focus on benefits to

society. New forms of marketing also use the internet and are therefore

called internet marketing or more generally e-marketing, online marketing,

search engine marketing, desktop advertising or affiliate marketing. It

attempts to perfect the segmentation strategy used in traditional marketing. It

targets its audience more precisely, and is sometimes called personalized

marketing or one-to-one marketing. Internet marketing is sometimes

considered to be broad in scope, because it not only refers to marketing on

the Internet, but also includes marketing done via e-mail and wireless media.

Orientation Profit driver

Western

European

timeframe

Description

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Relationship

marketing 

/Relationship

management

Building and

keeping good

customer

relations

1960s to

present

day

Emphasis is placed on the

whole relationship between

suppliers and customers.

The aim is to provide the

best possible customer

service and build customer

loyalty.

Business

marketing 

/Industrial

marketing

Building and

keeping

relationships

between

organizations

1980s to

present

day

In this context, marketing

takes place

between businesses or orga

nizations. The product focus

lies on industrial

goods or capital goods

rather than

consumer products or end

products. Different forms of

marketing activities, such as

promotion, advertising and

communication to the

customer are used.

Social marketing Benefit to

society

1990s to

present

day

Similar characteristics as

marketing orientation but

with the added proviso that

there will be a curtailment of

any harmful activities to

society, in product,

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production, or selling

methods.

Branding Brand value

2000s to

present

day

In this context, "branding" is

the main company

philosophy and marketing is

considered an instrument of

branding.

Customer orientation

Constructive criticism helps marketers adapt offerings to meet changing

customer needs.

A firm in the market economy survives by producing goods that persons

are willing and able to buy. Consequently, ascertaining consumer

demand is vital for a firm's future viability and even existence as a going

concern. Many companies today have a customer focus (or market

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orientation). This implies that the company focuses its activities and

products on consumer demands. Generally, there are three ways of

doing this: the customer-driven approach, the market change

identification approach and the product innovation approach.

In the consumer-driven approach, consumer wants are the drivers of all

strategic marketing decisions. No strategy is pursued until it passes the

test of consumer research. Every aspect of a market offering, including

the nature of the product itself, is driven by the needs of potential

consumers. The starting point is always the consumer. The rationale for

this approach is that there is no reason to spend R&D funds developing

products that people will not buy. History attests to many products that

were commercial failures in spite of being technological breakthroughs.

A formal approach to this customer-focused marketing is known

as SIVA (Solution, Information, Value, and Access). This system is

basically the four Ps renamed and reworded to provide a customer

focus. The SIVA Model provides a demand/customer-centric alternative

to the well-known 4Ps supply side model (product, price, placement,

promotion) of marketing management.

Product → Solution

Price → Value

Place → Access

Promotion → Information

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If any of the 4Ps were problematic or were not in the marketing factor of

the business, the business could be in trouble and so other companies

may appear in the surroundings of the company, so the consumer

demand on its products will decrease.

Organizational orientation

In this sense, a firm's marketing department is often seen as of prime

importance within the functional level of an organization. Information

from an organization's marketing department would be used to guide the

actions of other departments within the firm. As an example, a marketing

department could ascertain (via marketing research) that consumers

desired a new type of product, or a new usage for an existing product.

With this in mind, the marketing department would inform the R&D

department to create a prototype of a product/service based on

consumers' new desires.

The production department would then start to manufacture the product,

while the marketing department would focus on the promotion,

distribution, pricing, etc. of the product. Additionally, a firm's finance

department would be consulted, with respect to securing appropriate

funding for the development, production and promotion of the product.

Inter-departmental conflicts may occur, should a firm adhere to the

marketing orientation. Production may oppose the installation, support

and servicing of new capital stock, which may be needed to manufacture

a new product. Finance may oppose the required capital expenditure,

since it could undermine a healthy cash flow for the organization.

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MARKET RESEARCH

"Marketing research is the function that links the consumer, customer,

and public to the marketer through information - information used to

identify and define marketing opportunities and problems; generate,

refine, and evaluate marketing actions; monitor marketing performance;

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and improve understanding of marketing as a process. Marketing

research specifies the information required to address these issues,

designs the methods for collecting information, manages and implements

the data collection process, analyzes, and communicates the findings and

their implications."

American Marketing Association (AMA) - Official Definition of Marketing

Research

The Marketing research Process

Marketing research is gathered using a systematic approach. An

example of one follows:

1. Define the problem. Never conduct research for things that you would

'like' to know. Make sure that you really 'need' to know something. The

problem then becomes the focus of the research. For example, why are

sales falling in New Zealand?

2. How will you collect the data that you will analyze to solve your

problem? Do we conduct a telephone survey, or do we arrange a focus

group? The methods of data collection will be discussed in more detail

later.

3. Select a sampling method. Do we us a random sample, stratified

sample, or cluster sample?

4. How will we analyze any data collected? What software will we use?

What degree of accuracy is required?

5. Decide upon a budget and a timeframe.

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6. Go back and speak to the managers or clients requesting the

research. Make sure that you agree on the problem! If you gain

approval, then move on to step seven. 7. Go ahead and collect the data.

8. Conduct the analysis of the data.

9. Check for errors. It is not uncommon to find errors in sampling, data

collection method, or analytic mistakes.

10. Write your final report. This will contain charts, tables, and diagrams

that will communicate the results of the research, and hopefully lead to a

solution to your problem. Watch out for errors in interpretation.

Sources of Data -   Primary   and   Secondary

There are two main sources of data - primary and secondary. 

Primary research is conducted from scratch. It is original and collected to

solve the problem in hand. 

Secondary research, also known as desk research, already exists since

it has been collected for other purposes.

Primary marketing research is collected for the first time. It is

original and collected for a specific purpose, or to solve a specific

problem. It is expensive, and time consuming, but is more focused

than secondary research. There are many ways to conduct

primary research. We consider some of them:

1. Interviews

2. Mystery shopping

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3. Focus groups

4. Projective techniques

5. Product tests

6. Diaries

7. Omnibus Studies

1.0 Interviews.

This is the technique most associated with marketing research.

Interviews can be telephone, face-to-face, or over the Internet.

1.1 Telephone Interview.

Telephone ownership is very common in developed countries. It is ideal

for collecting data from a geographically dispersed sample. The

interviews tend to be very structured and tend to lack depth. Telephone

interviews are cheaper to conduct than face-to-face interviews (on a per

person basis).

Advantages of telephone interviews

Can be geographically spread

Can be set up and conducted relatively cheaply

Random samples can be selected

Cheaper than face-to-face interviews

Disadvantages of telephone interviews

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Respondents can simply hang up

Interviews tend to be a lot shorter

Visual aids cannot be used

Researchers cannot behavior or body language

1.2 Face-to-face Interviews.

Face-to face interviews are conducted between a market researcher and

a respondent. Data is collected on a survey. Some surveys are very rigid

or 'structured' and use closed questions. Data is easily compared. Other

face-to-face interviews are more 'in depth,' and depend upon more open

forms of questioning. The research will probe and develop points of

interest.

Advantages of face-to-face interviews

They allow more 'depth'

Physical prompts such as products and pictures can be used

Body language can emphasize responses

Respondents can be 'observed' at the same time

Disadvantages   of face-to-face interviews

Interviews can be expensive

It can take a long period of time to arrange and conduct.

Some respondents will give biased responses when face-to-face with a

researcher.

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1.3 The Internet

The Internet can be used in a number of ways to collect primary data.

Visitors to sites can be asked to complete electronic questionnaires.

However responses will increase if an incentive is offered such as a free

newsletter, or free membership. Other important data is collected when

visitors sign up for membership.

Advantages of the Internet

Relatively inexpensive

Uses graphics and visual aids

Random samples can be selected

Visitors tend to be loyal to particular sites and are willing to give up time

to complete the forms

Disadvantages of the Internet

Only surveys current, not potential customers.

Needs knowledge of software to set up questionnaires and methods of

processing data

May deter visitors from your website.

1.4 Mail Survey

In many countries, the mail survey is the most appropriate way to gather

primary data. Lists are collated, or purchased, and a predesigned

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questionnaire is mailed to a sample of respondents. Mail surveys do not

tend to generate more than a 5-10% response rate. However, a second

mailing to prompt or remind respondents tends to improve response

rates. Mail surveys are less popular with the advent of technologies such

as the Internet and telephones, especially call centers.

2.0 Mystery Shopping

Companies will set up mystery shopping campaigns on an organizations

behalf. Often used in banking, retailing, travel, cafes and restaurants,

and many other customers focused organizations, mystery shoppers will

enter, posing as real customers. They collect data on customer service

and the customer experience. Findings are reported back to the

commissioning organization. There are many issues surrounding the

ethics of such an approach to research.

3.0 Focus Groups.

Focus groups are made up from a number of selected respondents

based together in the same room. Highly experienced researchers work

with the focus group to gather in depth qualitative feedback. Groups tend

to be made up from 10 to 18 participants. Discussion, opinion, and

beliefs are encouraged, and the research will probe into specific areas

that are of interest to the company commissioning the research.

Advantages of focus groups

Commissioning marketers often observe the group from behind a one-

way screen

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Visual aids and tangible products can be circulated and opinions taken

All participants and the research interact

Areas of specific interest can be covered in greater depth

Disadvantages   of focus groups

Highly experienced researchers are needed. They are rare.

Complex to organize

Can be very expensive in comparison to other methods

4.0 Projective techniques.

Projective techniques are borrowed from the field of psychology. They

will generate highly subjective qualitative data. There are many

examples of such approaches including: Inkblot tests - look for images in

a series of inkblots Cartoons - complete the 'bubbles' on a cartoon series

Sentence or story completion Word association - depends on very quick

(subconscious) responses to words Psychodrama - Imagine that you are

a product and describe what it is like to be operated, warn, or used.

5.0 Product tests.

Product tests are often completed as part of the 'test' marketing process.

Products are displayed in a mall of shopping center. Potential customers

are asked to visit the store and their purchase behavior is observed.

Observers will contemplate how the product is handled, how the packing

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is read, how much time the consumer spends with the product, and so

on.

6.0 Diaries.

Diaries are used by a number of specially recruited consumers. They are

asked to complete a diary that lists and records their purchasing

behavior of a period of time (weeks, months, or years). It demands a

substantial commitment on the part of the respondent. However, by

collecting a series of diaries with a number of entries, the researcher has

a reasonable picture of purchasing behavior.

7.0 Omnibus Studies.

An omnibus study is where an organization purchases a single or a few

questions on a 'hybrid' interview (either face-to-face or by telephone).

The organization will be one of many that simply want to a

straightforward answer to a simple question. An omnibus survey could

include questions from companies in sectors as diverse as heath care

and tobacco. The research is far cheaper, and commits less time and

effort than conducting your own research.

Secondary marketing research, or desk research, already exist

in one form or another. It is relatively cheap, and can be conducted

quite quickly .However, it tends to have been collected for reasons

other than for the problem or objective at hand. So it may be

untargeted, and difficult to use to make comparisons (e.g. financial

data gather on Australian pensions will be different to data on

Italian pensions).

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There are a number of such sources available to the marketer, and the

following list is by no means conclusive:

Trade associations

National and local press Industry magazines

National/international governments

Websites

Informal contacts

Trade directories

Published company accounts

Business libraries

Professional institutes and organizations

Omnibus surveys

Previously gathered marketing research

Census data

PRIMARY DATA COLLECTION

Collection Methods

1) OBSERVATION

a) Natural setting

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b) Field experiment

Advantage minimizes response bias

Disadvantage l imited to measuring behavior

Time consuming

Subject to investigator bias

2) COMMUNICATION

a) Personal interview

Advantage permits detailed & in-depth questions

responses

Minimizes non-response

Disadvantage costly

Interviewer bias

Investigator bias

Interviewer cheating

b) Telephone Interview

Advantage convenient

Saves time

Relatively inexpensive

Less interviewer & investigator than

personal interview bias

Disadvantage non-coverage

Limited length & depth of questions

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and responses

c) Self-administered Questionnaire

Advantage cost effective for large areas

Minimizes interviewer bias

Promotes accurate answers

Disadvantage low response rates

Unanswered questions

Incorrect answers

Question Formats

1) OPEN-ENDED QUESTIONS: Respondents are given complete

freedom to answer in their own words.

Advantage a) eliminates "forced choice" bias

b) Unlimited response varieties

Disadvantage a) promotes investigator bias

b) Responses difficult to code and analyz

Best Use a) small scale exploration

b) Establishing rapport

c) As final question

d) to collect facts: e.g., age

2) CLOSED-ENDED QUESTIONS:

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A) Yes – No Questions: Respondents are limited to a positive or

negative position.

Advantage a) minimizes investigator bias

b) Responses obtained quickly

c) Coding is simple and inexpensive

Disadvantage a) simplistic / limits range of commitment

b) Wording can cause biases

Best Use a) telephone interview

b) self-administered questionnaire when

topic permits

B) Multiple Choice Questions: Respondents are limited to choice

of more than two positions.

Advantage a) minimizes investigator bias

b) Responses obtained quickly

c) Coding is simple and inexpensive

d) Permits greater range of commitment

than yes-no questions

Disadvantage a) good questions are difficult to write

b) Wording can cause biases

Best Use a) personal interview

b) Self-administered questionnaire

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c) Telephone interview if item is not too

complicated

4) Filter (Split or Branch) Question: Question designed to direct

respondents to different sections of the questionnaire.

Best Use To get answers for questions that are

appropriate for only part of the sample.

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Questionnaire Design

Preliminary Concerns

1. Consider the data collection method.

2. Consider the measurement scale and statistical analysis to be used.

Wording

1. Use correct grammar and sentence structure. Avoid slang and

colloquialisms.

2. Wording should be as simple as possible without being condescending

to respondent.

3. Use a conversational tone. Wording should be as closely as possible

to the manner in which people would talk to each other.

4. Wording should be neutral and clearly communicate the intent of

question.

Instructions

1. Instructions on how to answer should be communicated to the

respondent as part of the question.

2. Special instructions to the interviewer should be clear and located on

the questionnaire.

3. Clearly distinguish the instructions to the interviewer questions and

responses by always putting the instructions to the interviewer

CAPS, Italics, etc.

Content

1. Write brief questions.

2. Have a specific goal for each question.

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3. Make efforts to write questions that are valid measures of the study’s

variables.

4. Be careful not to assume behavior or knowledge on the part of any

respondent.

5. If a question contains facts, make sure they are accurate.

6. Carefully choose wording so that accurate information is collected.

Be precise and specific in the use of concepts (for example,

government--is it city, county, or federal?).

Be precise and specific regarding time, either as a period of recall or

as a time limit to a certain behavior.

Avoid "loaded" questions that suggest to respondents that one

answer is preferable to another.

Avoid double questions where two or more issues are mentioned.

Avoid all-inclusive terms such as "never" or "always."

Avoid the use of technical terms and abbreviations that can be

misconstrued.

Avoid the use of inflammatory words such as "racist" or

"exploitation."

7. Be sure all questions are relevant to the research goal.

8. Be certain all important questions are asked.

Response Categories

1. Response categories must match the attributes mentioned in question.

2. Response categories to closed-ended items must be:

Sufficiently exhaustive.

Mutually exclusive.

The categories respondents would naturally use to classify the item

or themselves.

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3. Questions may contain a response category of "don't know" or "no

answer/refusal."

Order

1. Treat all questions as part of a whole, not isolated or separate from

other items.

2. Remember that each question is perceived by the respondent to be in

a context of questions. Thus, answers to one question can be affected

by responses to others in the same group.

3. Questions should be grouped according to topic.

4. Within a topic it is usually best to arrange questions so they move from

general to specific.

5. The question order should permit the interviewer to keep the interview

moving at a conversational, yet purposeful pace. To achieve this:

Order questions using a logic that will make sense to the

respondent.

Use transitional statements freely so that the questions "flow"

easily one to another.

6. The first questions should be relatively easy-to-answer questions

that are related to the research topic that was expressed in the

introductory message or cover letter.

7. Place important/sensitive questions in the middle of the

questionnaire.

8. Place easy-to-answer questions, such as demographic items, at

the end of the questionnaire.

Format

1. Clearly distinguish questions from response categories.

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2. Vary response patterns and group topics as often as is practical to

prevent fatigue.

3. Avoid breaking a question between pages of the questionnaire.

4. Splitting complex issues into two or more simple questions in order to

eliminate respondent confusion and error.

5. Avoid questions that duplicate earlier items or appear to the respondent

to be redundant.

6. Precode the questionnaire. Include the response codes on the

questionnaire.

Pretest

Conduct a small-scale replica of the large-scale survey (plus some).

Step 1: Administer questionnaire to representative respondent in a

personal interview.

Step 2: Administer revised questionnaire on small scale using same

medium as final administration.

Step 3: Enter the data into a spreadsheet or statistical package and

tally results.

Step 4: Construct a SUMMARY SURVEY: a tally of response

frequencies recorded on a copy of the questionnaire.

Step 5: Revise questionnaire and repeat pretest as needed.

THINGS TO LOOK FOR WHEN PRETESTING

The answers obtained in pretests suggest variability in response, not

an "all or none" response pattern.

Non-substantive responses (for example, "I don't know" or refusals)

are at a minimum.

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There are no wording difficulties (for example, bad grammar, and

incomprehensible slang.)

The respondent does not ask the interviewer to explain or rephrase

the question.

The interviewers express no or minimal difficulty in administering the

question.

There are no difficulties entering or tallying the data.

Items for Inclusion with a Self-Administered Questionnaire

Mandatory

1. Prepare an introductory message to accompany the

questionnaire. It should contain information about the topic or

purpose of the research, the sampling procedure, protection of

the respondent’s confidentiality, and the name, address, and

phone number of a contact person.

2. Keep the questionnaire procedures simple.

3. Keep questionnaires as short as you can and ask only the

questions you are sure you need.

4. If you are asking questions that may be construed as personal

- such as sex, age, or income - explain why they are

necessary.

BRANDING

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David Ogilvy defines brands as “the intangible sum of a product’s

attributes: its name, packaging, and price, its history, its reputation, and the

way it’s advertised.”Kotler defines brands as “A brand is a name, term,

sign, symbol, or design or a combination of them, intended to identify the

goods and services of one seller or group of sellers and to differentiate

them from those of the competitor.”

The Dictionary of Business and Management defines a brand as:

“A name, sign or symbol used to identify items or services of the seller(s)

and to differentiate them from goods of competitors.”  

Jared Spool, a web site usability expert, says, "Branding means creating

an emotional association (such as the feeling of success, happiness, or

relief) that customers form with the product, service, or company."

Walter Landor, one of the greats of the advertising industry, said: 

“Simply put, a brand is a promise. By identifying and authenticating a

product or service it delivers a pledge of satisfaction and quality.”

Branding is supposed to be the process by which the true character and

purpose of the company is communicated. And this process is a strategy

that is consistently applied through the entire firm, hopefully creating an

aura of trust; an appreciation of your uniqueness; and a set of expectations

in your customers, shareholders and employees. Everything is consistent--

packaging, advertising, public relations

There are different ways to look at the meaning of brand and branding in

simple terms:

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A brand is a collection of perceptions in the mind of the consumer.

Brand is everything what you want to communicate to consumers and what

you communicate. By definition, “brand” is whatever the consumer thinks

of when he or she hears your company’s name.

A brand is a promise. By identifying and authenticating a product or service

it delivers a pledge of satisfaction and quality.

It’s a bundle of functional and emotional benefits

A name with a reputation

A mark of pride

A simplifier of choice

A product or service with an attitude

It is absolutely clear that a brand is very different from a product or service.

A brand is intangible and exists in the mind of the consumer. This definition

helps us understand the idea of brand loyalty and the 'loyalty ladder'.

Different people have different perceptions of a product or service, which

places them at different points on the loyalty ladder.

This brings us to the other vital connections of management, namely,

Positioning and Advertising of a product or service. Advertising has to sell,

and it achieves this by positively influencing people's perceptions of the

product or service. However, Advertising grabs customers’ minds.

ROLE OF BRANDS

In a world where products, markets, and industry boundaries are in flux, a

well-managed brand can be a prime source of strategic direction and

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competitive advantage. Today branding is such a strong force that

anything from salt to lemon juice and water is branded. The following are

the roles of branding which serve many purposes

1) A brand identifies the seller or maker.

2) A brand protects both the consumer and the producer from competitors who would attempt to provide products that appear to be identical.

3) A brand reduces the primacy of price upon the purchase decision.

4) It accentuates the bases of differentiation.

5) A brand is essentially a sellers promise to consistently deliver a specific

set of features, benefits and services to the buyers.

6) A brand gives the seller the opportunity to attract a loyal and profitable

set of customers. Brand loyalty gives sellers some protection from

competition and greater control in planning their marketing programs.

7) Strong brands help build the corporate image, making it easier to launch

and gain acceptance by distributors and customers.

8) Managing a positive brand image creates opportunities to introduce new

products that build on brand equity. It helps to attract and retain good

employees and it improves the stockholders

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BRANDING CHARACTERISTICS

The world is rapidly shrinking with the advent of faster communication,

transportation and financial flows. Products developed in one country –

Mont Blanc pens, McDonalds, BMW’s – are finding enthusiastic

acceptance in other countries.

A German businessman may wear an Armani suit to meet an English

friend at an Indian restaurant who later returns home to drink Russian

vodka and watch an American soap on a Korean television.

There are different aspects or levels of a brand, may it be of a product or

service which attract customers to build an image and an idea about that

product or service. There may be various viewpoints through which a

person may perceive the brand in a particular way.

Let’s take Mercedes Benz for example:

Attributes: Mercedes suggests expensive, well-built, well-engineered,

durable, high prestige, high value, fast and so on. The company may use

one or more of the attributes to advertise the car. For years, Mercedes

advertised “Engineered like no other car in the world”. This tagline

served as a positioning platform for the car’s other attributes.

Benefits: Customers are not buying attributes, they are buying benefits.

Attributes need to be translated into emotional and functional benefit, “I

am safe in case of an accident”.

Values: The brand also says something about the producer’s values.

Thus Mercedes stands for high performance, safety, prestige and so on.

The brand marketer must figure out the specific groups of car buyers

who are seeking these values.

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Culture: The brand may represent a certain culture. The Mercedes

represents German culture: organized, efficient, high quality.

Personality: The brand can also project a certain personality. If the

brand were a person, an animal, or an object, what would come to mind?

Mercedes may suggest a no-nonsense boss (person), a reigning lion

(animal), or an austere palace (object). Sometimes it might take on the

personality of an actual well-known person or spokesperson.

User: The brand suggests the kind of consumer who buys or uses the

product. We would be surprised to see a 20-year-old secretary driving a

Mercedes. We would accept instead to see a 55 year-old top executive

behind the wheel. The users will be those who respect the product’s

values, culture and personality.

TYPES OF BRAND

The functional dimension is the product’s attributes and benefits or the

tangible properties while the symbolic dimensions are the intangible

aspects of the brand. A marketer can combine these two elements to

create the ‘right’ appeal for customers. In consumer behavior the rational

and emotional perspectives are two models that explain how consumers

make purchase decisions. Successful branding, therefore, depends on

combining the rational and emotional components of a brand in a

manner that it becomes consistent with the consumer’s frame of mind.

FUNCTIONAL   BRANDS

Here, the functional dimension of the brand is far more visible and

appealing than the emotional or symbolic dimension.

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Nivea’s range of body products focuses on the functional benefit of

smooth skin.

Also, buying of a painkiller would be by and large a rational, left brain

driven activity. What implications does one have for marketers of Aspirin,

Aspro, Anacin? Here the brand should be functions driven. That is,

the brand essence should revolve around ‘reasons’ demonstrating

product superiority in terms of its ingredients and efficiency of its pain

relieving process (e.g., the product “dissolves faster in water” and

therefore, “relieves pain faster.”

SYMBOLIC   BRANDS

Here, the symbolic or emotional dimension is more prevalent than the

functional dimension. The decisions would be based on more of the

emotional aspect than that of rational aspect.

In the circumstances where consumer buying is emotions driven,

the brand must accordingly focus on symbolic or emotional

aspects.E.g. ICICI Prudential has various schemes concerning children’s

futures; this also stresses on the emotional aspect, caring for the child

and securing.

WHY IS IT DIFFICULT TO BUILD STRONG BRANDS?

For building an atta brand, it’s very difficult. Let’s look at some of the

major concerns & examples for the same.

It is difficult to build a strong brand in today's environment. The brand

builder can be inhibited by substantial pressures and barriers, both

internal and external. There are 8 different factors that make it

difficult to build brands:

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1. Complex branding strategies and brand relationships

2. The temptation to change identity/executions, organizational

3.  Pressure to invest elsewhere

4. Pressures for short-term results.

One key to successful brand building is to understand how to

develop brand identities, to know what the brand stands for, and how to

most effectively express that identity.

1. PRESSURE TO COMPETE ON PRICE

There are enormous pressures on all firms to compete on price. Price

competition is at center stage, driven by powers of strong retailers, value

sensitive customers, reduced capacity growth and overcapacity.

Retailers have become stronger and use their powers to put pressures

on prices. Whereas a year ago information was largely controlled by the

manufacturer retailers are now collecting vast amounts of information

and developing models to use it. As a result there is an increasing focus

on margins and efficient use of space.

Orange versus BPL mobile services - What these cellular service

providers are doing is to compete with each other mainly on the basis of

price. If Orange is cutting its deposit amount, or reducing the general

rent or tariff or airtime charges, BPL has to follow the suit. Also the cola

companies like Coca Cola and Pepsi are continuously engaged in a

price war.

2. PROLIFERATION OF COMPETITORS

New, vigorous competitors come from a variety of sources. Additional

competitors not only contribute to price pressures and brand complexity,

but also make it harder to gain and hold a position. They leave fewer

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holes in the market to exploit and fewer implementation vehicles to own.

Each brand tends to be positioned more narrowly, the target market

becomes smaller and no target market becomes larger.

There are innumerous players in various product categories. One of

these is toothpaste. With products ranging from gel, tooth powder, herbal

pastes and striped paste – the market is quite clustered. The market is

so much saturated with different players in these markets that they keep

competing on the positioning of their brands, which has to be different

from the rest and thus cater to a particular segment of the population.

Like Close-up toothpaste which is positioned on the fact that it has

mouthwash for fresh breath and Colgate which stresses on its calcium

content for stronger teeth.

3. FRAGMENTATION MARKETS AND MEDIA

At one time being consistent across media and markets was easy as

there were a limited number of media options and only a few national

media vehicles. However the bewildering array of media options today

includes interactive television, advertising on the internet, direct

marketing, event sponsorship and more are being invented daily.

Coordinating messages across these media without weakening a brand

is a major challenge. Coordination is all the more difficult because

different brand support activities are often handled by different

organizations and individuals with varying perspectives and goals. In

addition companies are dividing the population into smaller and more

refined target markets, often reaching them with specialized media and

distribution channels. Although it is tempting to develop separate brand

identity for each of these target segments it presents problems for both

the brand and the customer. Since media audiences invariably overlap,

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customers are likely to be exposed to more than one identity relating to

the same brand.

The Coca-Cola ad featuring Aamir Khan is targeted at the retailers and

the rural market while the ad featuring Aishwarya Rai and Vivek Oberoi

is targeted at the urban consumers. As both these ads are going on

simultaneously the consumers tend to be exposed to both the rural as

well as the urban face of the brand.

4. COMPLEX BRANDING STRATEGIES AND RELATIONSHIPS

Different identities of brands and their extensions make both brand

building and managing it difficult. In addition to knowing its identity each

brand needs to understand its role in each context in which it is involved.

There is a tendency to use established brands in different contexts and

roles because establishing a totally new brand is very expensive. The

resulting new levels of complexity often are not anticipated or even

acknowledged until there is a substantial problem. 

Henko Compact and Henko Stain Champion both belong to the German

firm Henkal. Although this is a line extension finding difference between

both these products is not easy. A number of questions like “Does the

name ‘stain champion’ mean Henko Compact does not remove stains?

Or does it mean that Stain Champion is a technologically inferior

product?” often cross the consumers mind when they consider these

brands for purchase. This is because the line extension and the

relationship of one product with another in this strategy are not

considered.

5. BIAS TOWARDS CHANGING STRATEGIES

There are sometimes overwhelming internal pressures to change a

brand identity and/or its execution while it is still effective or even before

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it achieves its potential. The resulting changes can undercut brand

equity or prevent it from being established. Promise toothpaste tried to

change its well set positioning and went in to emphasize the freshness

aspect of its paste rather than the well-established clove oil aspect. As a

result its sales went down.

6. BIAS AGAINST INNOVATION

Companies managing a established brand can be so pleased with past

and current success, and so preoccupied with day to day problems, that

they become blind to competitive situations. By ignoring or minimizing

fundamental changes in the competitive situation or potential

breakthroughs, managers leave their brands vulnerable and risk missing

opportunities. A new competitor is thus often the source and beneficiary

of true innovation.

Iodex became blinded and redundant after achieving the position of

market leader and preferred to rest on its laurels rather than go in for

product innovations and line extensions. As a result its leadership

position was lost to Moov, which positioned itself as a remedy for

backache and converted all the weaknesses of Iodex into its strengths.

Also Bata was the market leader for footwear but they did not adapt with

the changing times.  As a result their sales went down. Currently

Liberty Footwear is the market leader.

7. PRESSURE TO INVEST ELSEWHERE

When a brand is strong there is a temptation to reduce investment in the

core business area in order to improve short-term performance or to

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fund new business diversifications. There is an often mistaken belief that

the brand will not be damaged by sharp reductions in support and that

the other investment opportunities are more attractive. Ironically the

diversification that attracts these resources is often flawed because an

acquired business was overvalued or because the organization’s ability

to manage a different business area was overestimated.

8. SHORT-TERM PRESSURES

Pressures for short-term results generally undermine investments in

brands. There are several reasons for this: 

1. There is wide acceptance that maximization of stockholder value

should be the overriding objective of the firm.

2. Management style itself is dominated by a short-term orientation.

Annual budgeting systems usually emphasize short-term sales,

costs and profits. As a result brand-building programs are often

sacrificed in order to meet those targets.

3. Short-term focus is created by performance measures available.

Measurements of intangible assets such as brand equity,

information technology or people are elusive at best. Also long

term value of activities that will enhance or erode brand equity is

difficult to demonstrate whereas short-term performances like

impact of promotions can be tabulated easily. This results in

debilitating bias towards short-term results.

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It is true that that building brands is difficult. But it is doable as is evident

by those who have done so. The greatest examples of this are brands

like Titan, Coca Cola, Cadbury’s etc. We can thus see that it is possible

to build strong brands by building, managing and maintaining the four

assets that underlie brand equity-awareness, perceived quality, brand

loyalty and brand association.

Many companies, especially while introducing a new product in the

market find that sales cannot be sustained without constant advertising.

Sales charts always show a meteoric rise post-advertising burst.

Companies often rerun advertisement on different channels over the year

to sustain the brand awareness and ensure that the consumers are

exposed to the brand.

Complan repeats the same TV commercials for different target markets

over a period of time to ensure brand recall and visibility. 

Factors Affecting Brand Awareness

Brand Awareness refers to the strength of a brand’s presence in the

consumer’s mind.

Awareness is measured according to the different ways in which

consumers remember a brand, ranging from recognition to recall to top of

the mind. Some of the major factors affecting brand awareness are: -

Brand Name: One of the most important factors affecting brand

awareness is the brand name. Brand name plays an important part

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in creating awareness for a brand. Also whether the name is really

very meaningful or completely baseless they both affect brand

awareness. 

Bacardi Breezers - flavored aerated vodka based drink

Fevi Stik - adhesive

Centre Shock chewing gum.

Advertising: Advertising also helps to create Brand awareness in a

big way. Take any brand name Fevicol, Vicks, Pepsi all have used

ads for creating awareness among their consumers.

Celebrity: - Another important factor affecting Brand awareness is

the celebrities endorsing the Brand. Whenever you see a celebrity

you love endorsing a brand you tend to propagate the Brand.

Coca Cola experienced a tremendous increase in brand following post

ad campaigns   with Hrithik Roshan and “Kaho Na Pyaar Hai”.

Parent Company:- To a large extent the parent company helps in

promoting a brand. The parent company in many cases is so popular

that its brand automatically become popular and people become

aware about the product.

TATA always promotes it brand with its name along with the brand such

as TATA INDICA, TATA INDIGO, TATA SALT.

Sales Promotions and Offers: - It also helps in making the

consumers aware of the brand. Some of the sales promotion

activities that companies carry out help them in a big way to make

their target aware of the brand.

Reliance India Mobile’s Monsoon Hungama offer, wherein they offered

their WLL services at an affordable price.

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1st Mover Advantage: - Usually the company that enters a product

category first has good awareness about its brand. Usually people

tend to remember the first player to enter the market.

Parle products “BISLERI” in the packaged water segment.

Public Relations: - The coverage that the fourth estate and

magazines provide a brand also helps in building awareness about a

brand.

The popularity of local restaurants such as J.W.Marriot has been boosted

by   the   page 3 mentions in the Bombay Times supplement of The Times

of India.

Direct Selling: - Some of the companies use direct selling as a

platform to create brand awareness.

Eureka Forbes water filter “AQUA GUARD”.

Peer Group Opinion: - Peer group opinion also plays an important

part in the whole brand awareness exercise. Usually people tend to

discuss a lot about the brand and tend to share their experiences or

some recent ad’s they have seen which in turn increases brand

awareness of their peers.

When opting for cellular network services (irrespective of prepaid or

billing), most people generally go by the opinions of their friends and

colleagues.

Recall Of Ads: - In some cases the brand awareness is also high

due to specific ad recall, which is very high.

Amaron battery advertisement of race between tortoise and rabbit with the

tagline “LAST LONG REALLY LONG”.

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BRAND RECALL- A BRAND BUILDING CONCEPT

A brand (Bisleri) is said to have recall if it comes to consumers’ minds

when its product class (mineral water) is mentioned.

It indicates stronger brand position in the mind. Still at a higher level is the

top of the mind recall; it is the brand, which comes first to the mind. The

top of mind awareness indicates a relative superiority a brand enjoys

above others. Sometimes a brand becomes so dominant that it becomes

the only recalled brand in the product category. Very few brands are able

to achieve dominance. The cases may include Johnson & Johnson baby

powder, Dettol antiseptic, Colgate and Cadbury

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INDUSTRY ANALYSIS

FMCG INDUSTRY IN INDIA

Fast Moving Consumer Goods (FMCG) goods are popularly named

as consumer packaged goods. Items in this category include all

consumables (other than groceries/pulses) people buy at regular

intervals. The most common in the list are toilet soaps, detergents,

shampoos, toothpaste, shaving products, shoe polish, packaged

foodstuff, and household accessories extends to certain electronic

goods.

These items are meant for daily of frequent consumption and have a

highreturn.

The Indian FMCG sector is an important contributor to the country’s

GDP. The FMCG sector is the fourth largest sector of Indian economy.

The FMCG market is estimated to treble from its current figure in the

coming decade. 

The Indian FMCG sector is the fourth largest sector in the economy

with a total market size in excess of $13.1 billion. It has a strong MNC

presence and is characterized by a well established distribution

network, intense competition between the organized and unorganized

segments and low operational cost. Availability of key raw materials,

cheaper labor costs and presence across the entire value chain gives

India a competitive advantage.

The FMCG market is set to treble from $11.6 billion in 2003 to $33.4

billion in 2015. Penetration level as well as per capita consumption in

most product categories like jams, toothpaste, skin care, hair wash etc.

in India is low indicating the untapped market potential. Burgeoning

Indian population, particularly the middle class and the rural segments,

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presents an opportunity to makers of branded products to convert

consumers to branded products. Growth is also likely to come from

consumer 'upgrading' in the matured product categories. With 200

million people expected to shift to processed and packaged food by

2010, India needs around $28 billion of investment in the food-

processing industry.

In this year when almost all the stocks have been tumbled heavily on

the Dalal Street, the one sector which completely outperformed the

market is FMCG. During last 52 weeks the SENSEX has lost by

around 53%, while BSE FMCG has just lost by below 10%.

Sensex witnessed strong bull market journey with almost 7 fold gains

from 3000 in 2003 to 21000 in 2008, the FMCG did not match the

Index equivalently but managed to follow the trend by almost 3.5 times

gain for the same period. Now in a bear market scenario, the FMCG is

bucking the trend which is a big sigh of relief for investors

HUL led the way in revolutionizing the product, market, distribution and

service formats of the FMCG industry by focusing on rural markets,

direct distribution, creating new product, distribution and service

formats. The FMCG sector also received a boost by government led

initiatives in the 2003 budget such as the setting up of excise free

zones in various parts of the country that witnessed firms moving away

from outsourcing to manufacturing by investing in the zones.

Though the absolute profit made on FMCG products is relatively small,

they generally sell in large numbers and so the cumulative profit on

such products can be large. Unlike some industries, such as

automobiles, computers, and airlines, FMCG does not suffer from

mass layoffs every time the economy starts to dip. A person may put

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off buying a car but he will not put off having his dinner.

Unlike other economy sectors, FMCG share float in a steady manner

irrespective of global market dip, because they generally satisfy rather

fundamental, as opposed to luxurious needs. The FMCG sector, which

is growing at the rate of 9% is the fourth largest sector in the Indian

Economy and is worth Rs.93000 crores. The main contributor, making

up 32% of the sector, is the South Indian region. It is predicted that in

the year 2010, the FMCG sector will be worth Rs.143000 crores. The

sector being one of the biggest sectors of the Indian Economy provides

up to 4 million jobs.

LIST OF FMCG COMPANIES IN INDIA

A. ADF Foods Ltd, Ajanta Soya Ltd, Apeejay Tea Ltd, Assam

Company India Ltd.

B. Bajaj Hindustan Ltd., Bambino Agro Inds.

Ltd, Britannia Industries Ltd

C. Camson Bio Technologies Ltd, ChamanLalSetia Exports

Ltd, Colgate-Palmolive (India) Ltd

D. Dabur India Ltd, Dhunseri Tea &Inds. Ltd, Dollex Industries Ltd.

E. Eastern Sugar &Inds. Ltd, EID-Parry (India) Ltd., Emami Ltd

F. Flex Foods Ltd, Freshtrop Fruits Ltd

G. GlaxoSmithKline Consumer Healthcare Ltd, Godfrey Phillips

India Limited, Godrej Consumer Products Limited, Gujarat

Ambuja Exports Ltd

H. Henkel India Ltd, Himalya International Ltd, Hindustan Unilever

Limited

I. IB Infotech Enterprises Ltd, Indian Sucrose Ltd, ITC Limited, IVP

Ltd

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J. Jay Shree Tea &Inds. Ltd, JK Sugar Ltd

K. Kesar Enterprises Ltd, Kohinoor Foods Ltd, Kwality Dairy (India)

Ltd

L. Longview Tea Company Ltd, Lotte India Corpn. Ltd.,Lotus

Chocolate Company Ltd.

M. Mohan Meakin Ltd, Mount Everest Mineral Water Ltd, Muller &

Phipps (India) Ltd.

N. Natraj Proteins Ltd, NEPC Agro Foods Ltd, Nestle India

Ltd, Nirma Ltd

O. Orient Beverages Ltd, Oudh Sugar Mills Ltd

P. Parry Agro Inds. Ltd, Procter & Gamble Hygiene and Health Care

Limited

Q. -

R. Rei Agro Ltd, RT Exports Ltd, RTCL Ltd, Ruchi Soya Inds. Ltd

S. SampreNutritions Ltd, Simran Farms Ltd, Super Bakers (India)

Ltd

T. Tata Coffee Ltd, Tata Tea Limited, Temptation Foods Ltd, Triveni

Engineering &Inds. Ltd

U. United Breweries Limited,United Spirits Limited, Upper Ganges

Sugar &Inds. Ltd

V. Vadilal Enterprises Ltd, Venky'S (India) Ltd, Volga Air Technics

Ltd.

W.Warren Tea Ltd, Weikfield Products Company India Private

Limited, Wellwin Industry Ltd.

X. -

Y. -

Z. Zicom Electronic Security Systems Ltd., Zydus Wellness Ltd.

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TYPES OF FMCG COMPANIES

The FMCG sector consists of the following categories:

1. PERSONAL CARE

o Oral care, Hair care, Wash (Soaps), Cosmetics and

Toiletries, Deodorants and Perfumes, Paper products

(Tissues, Diapers, Sanitary products) and Shoe care.

o The major players being; Hindustan Lever Limited, Godrej

Soaps, Colgate, Marico, Dabur and Procter & Gamble.

2. HOUSEHOLD CARE

o Fabric wash (Laundry soaps and synthetic detergents),

Household cleaners (Dish/Utensil/Floor/Toilet cleaners), Air

fresheners, Insecticides and Mosquito repellants, Metal

polish and Furniture polish.

o The major players being; Hindustan Lever Limited, Nirma

and Ricket Colman.

3. BRANDED AND PACKAGED FOODS AND BEVERAGES

o Health beverages, Soft drinks, Staples/Cereals, Bakery

products (Biscuits, Breads, Cakes), Snack foods,

Chocolates, Ice-creams, Tea, Coffee, Processed fruits,

Processed vegetables, Processed meat, Branded flour,

Bottled water, Branded rice, Branded sugar, Juices.

o The major players being; Hindustan Lever Limited, Nestle,

Coca-Cola, Cadbury, Pepsi and Dabur

4. SPIRITS AND TOBACCO

o The major players being; ITC, Godfrey, Philips and UB

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RECENT DEVELOPMENTS IN (FMCG) SECTOR

FMCG sector is no doubt registering an up trend in growth. According

to CNBC, FMCG sector growth story will continue because of the

positive budget. Nevertheless, there are some barriers to the growth of

the sector. Indirect taxes constitute no less than 35% of the total cost

of consumer products - the highest in Asia. Last year, Finance Minister

proposed to introduce an integrated Goods and Service Tax by April

2010.This is an exceptionally good move because the growth of

consumption, production, and employment is directly proportionate to

reduction in indirect taxes. 

Budget 2011 for FMCG Sector

Focus on rural lending and increase in capital of rural banks will

help farmer’s access cheap loans.

Various schemes for rural development will help improve the

living standards in the rural area and help provide better access

to the rural heartlands.

Readjustment of tax slabs will help increase the disposable

income in the hands of consumers.

Concessional duties and exemption of service tax will help boost

setting up of cold storages, cold units and refrigeration units..

Withdrawal of exemption on excise duty on various ayurvedic,

paper and food items will increase their prices.

Imposition of 1% excise duty on various food products is a

negative for companies like HUL, ITC, Nestle, Tata Tea, Tata

Coffee etc.

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Focus on rural spending is a big positive for most company as

they have started targeting the rural sector. These

include HUL, ITC, Marico, Godrej, Dabur, etc

Spending on setting up warehousing and cold storages is a big

positive as it helps provide better logistics and lowering of

wastes. The companies which would benefit are Nestle, HUL,

ITC, Britannia etc.

Branded flour market is highly unorganized is held by only a few

major players-

Hindustan Lever - Annapurna brand

Godrej Pillsbury - Pillsbury

Agro Tech - Healthy World

Nature Fresh

ITC - Aashirvaad

Shakti Bhog

While India has always been an attractive market because of its size,

several factors have fuelled the MNC’s' enthusiasm to enter the food

industry now.

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

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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

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.

Spices

The export of spices and spice-based value added products during April-

February 2010-11 was US$ 1,323.28 compared to the US$ 1,063.44 in

the same period last year.

Fishery

Fish production of the country has been growing continuously with

improvement in productivity and utilization of untapped resources. The

total fish production is 6.4 million metric tons (mmt) of which 3.4 mmt is

inland and 3.0 mmt is marine production. The Fishery sector contributes

about 1.21 per cent of the total GDP and 5.37 per cent of the GDP from

agriculture sector and provides employment to 14 million people.

Food Processing

FDI inflows to Food Processing Industries has set a target of USD 25.07

billion to be achieved by 2015.

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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 food park, the

government has also extended several fiscal incentives 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.

INDIA is one of the world's largest food producers, yet branded foods

account for an inconsequential proportion. Among the various food

industry segments, the largest is wheat. Estimates of the industry's size

vary, but it is generally put at around Rs. 80,000 crores. This estimate

may be far off the mark, but there is no disputing the Indian market's

vastness for mass-consumption items such as wheat products.

Considering the industry's size and low brand penetration, international

giants have set their sights on the nascent Indian market for branded

wheat products -- biscuits, breads, packaged atta and innovations such

as chapattis.

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However, to ensure a full-fledged presence, companies still have to

overcome huge obstacles. One, imports are unviable in the long-run.

Indian food products are one of the cheapest in the world and competing

with them based on a strategy of imports is an unviable proposition. The

cost of labour is very low and even with a gradual decline in customs

duties; imports of even the high-priced varieties are likely to remain out

of the market's reach.

There are constraints on having a manufacturing presence as well. With

control still on raw materials, such as wheat and sugar, and a high

import tariff regime, it would not be easy for manufacturing companies to

control costs. Both these factors appear to give entrenched players an

advantage.

As for packaged atta, the idea of paying a price for hygiene has still to

sink in the urban and rural markets.

The demand explosion in India is predicated on the assumption that the

customer mindset has to change. This will happen only when the price is

right. In the last few years, customers worldwide have favored value-for-

money options, resulting in a noticeable decline in the premium

commanded by brands. The Indian consumer has always been price-

conscious. Against this backdrop, pricing is the key issue to be resolved

by these companies. This means companies have to investment

substantially to absorb the losses initially. And the extent of these

investments, by both established and new entrants, is likely to shape the

future of the Indian wheat products business.

The domestic branded atta market, estimated at 35,000-40,000 tonnes

per month, is currently growing by around 25 per cent annually. The

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packaged and branded segment is largely dominated by multinationals,

although there are also a few big domestic brands such as Shaktibhog,

Lal Qila and Rose.

Wheat constitutes a predominant part of staple food in India. Historically,

there had been no branding of these cereals. A few players have started

packaging and branding wheat flour and salt in the last few years.

Although the relative share of branded vs. unbranded sales is currently

minuscule, the sheer size of the market offers tremendous opportunity

for growth.

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OBJECTIVE

The basic objective of this project is to have an insight of the Branded

Atta Industry and to see what drives the big guns in such an industry

which has gone untapped since years. An attempt is made to

understand the consumer preference in such a product and what

companies can do to get the desirable market share because the key

here is volume. Also, we will try to see that what kind of new product

launch in this category will give the companies an upper hand.

India has always been an attractive market because of its size; several

factors have fuelled the Big guns enthusiasm to enter the food industry

now.

The developments on the foreign direct investment front allowing

companies to own 100 per cent in the food processing sector, the

removal of the dividend balancing norms, the reservation of select

segments in the food processing sector, has made a presence in the

Indian market a feasible proposition.

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METHODOLOGY

The survey was conducted in Ghaziabad and the respondents were

selected carefully so that the diverse culture of the town would help us to

study the consumption of atta by different religion in different forms.

Sampling:

Judgment Sampling was selected for the purpose of sampling.

Sample size

The sample size was restricted to 100 respondents but a diverse

sample was targeted.

Method of Collection:

The project demanded an extensive first hand data collection so

primary data was major source of information but even secondary data

through reliable sources played an important part in the completion of

the project

Tools for Survey:

A structured questionnaire was used to collect data so that it would

help in getting the best inputs in the project and a strategy could be

formulated based on the database.

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ANALYSIS OF DATA

PRIMARY DATA ANALYSIS

The primary data collection is one of the major sources of information in

such an industry because of diverse culture of respondents. The data

collected through structured questionnaire reflects various facts

regarding consumer behavior in relation to branded atta.

MARKET BREAKUP

Out of the total sample of 100 respondents from various locations all

over the city and belonging to different communities 55% of respondent

used chacki atta, 5% used home floor mill and remaining 40% used

packaged atta.

Market Break up

Chacki AttaHome floor millPackaged Atta

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BRAND PREFERENCE

The data reflects that among the respondents using packaged atta,

Aashirwad led the race with Annapurna with a equal preference of 35%

each whereas, Pillsbury Shakti bhog, Nature fresh and some others like

Roshan Atta finding their less preference.

Brand Preference

AnnapurnaAashirwadPillsburyCaptain CookOthers

A look couple of years ago and it clearly showed that Pillsbury was a

dominant player but the advantage of coming from the no 1 family of

FMCG has led the Annapurna to do a lot of catching. Due to its sheer

strength of understanding the market and already established

distribution network, it has given Pillsbury and Captain Cook a run for

their money.

Consumption pattern of atta

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Though atta can be consumed in any way therefore the questionnaire

was designed to study the overall average consumption of atta and the

average stood at almost 4 ½ kg per person per month.

The main consumption of atta was during the lunch hours and 50% of

the respondents consumed atta during lunch, 25% occasionally

consumed atta during lunch hours & remaining 25% never consumed

atta during lunch.

Consumption Pattern of Atta

FrequentlyOccasionallyNever

60% of the respondents consumed atta frequently during dinners also

reflecting the penetration of the product in the Indian market and also

proving the fact why all the biggies are eyeing this industry.

The consumption of atta during breakfast stood nominal with only 35% of

respondents consuming frequently, 15% occasionally and 50% never

consuming atta in breakfast.

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REASONS FOR USING CHACKI ATTA

This finding is a classification of different reasons given by respondents

for using chacki atta which is a major threat to anyone eyeing the

branded atta segment.

The survey reflects the major perception of respondent regarding chacki

atta and what is it that is restricting branded atta from penetrating the

market.

SR.NO. REASONS PERCEPTION ABOUT

CHACKI ATTA

1 QUALITY VERY GOOD

2 PRICE ECONOMICAL

3 TASTE GOOD

4 FRESHNESS EXTREMELY GOOD

5 ROLLABILITY GOOD

6 CONVENIENCE GOOD

As the table reflects chacki atta carries a very strong perception

regarding quality because here the consumer goes through a

psychological process wherein he himself selects the wheat and is

mentally satisfied because this has been in his tradition. Tangibility is a

major issue here.

The other major reason here is the price. The consumer in the whole

chacki system has thorough control over price because depending on

his financial position he selects the wheat and so controls the whole

process whereas this liberty is not available to him in branded atta.

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The other reasons are the freshness and the taste. In the chacki system

the whole control here is in the hand of the consumer because he has

liberty of going to the chacki whenever he wants and thus control the

freshness and the taste of the atta but the general perception about the

packaged atta is that it is a long process of manufacturing and

distribution and so the freshness of the atta may be at a risk.

Convenience and roll ability are among the other reasons given by

respondents in support of their using chacki atta.

Hence the data reveals that it is very difficult to change the mindset of

the customers regarding chacki atta.

REASONS FOR USING PACKAGED ATTA:

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The findings are a classification of the different reasons given by

consumers for using packaged atta and their support for different

qualities. The data reflects the various perceptions that the packaged

atta users carry.

SR.NO. REASONS PERCEPTION ABOUT

PACKAGED ATTA

1 QUALITY FAIR

2 PRICE HIGH

3 TASTE FAIR

4 FRESHNESS FAIR

5 ROLLABILITY FAIR

6 CONVENIENCE GOOD

As the data reveals that the packaged atta uses main reason for using it

is the convenience part. As the country gets more and more modernized

the penetration of women employment in the country is on the higher

side and this is the reason where all time saving products will get the

edge and so will branded atta.

The general perception of packaged atta is that it is not of good quality

because the consumer does not get choice to select the wheat which he

is addicted to do since decades.

The price is also perceived to be on the higher side and so it is not a

major incentive to attract consumers.

The freshness and taste is also a matter of concern because the

consumer does not know about the cycle of manufacturing and

distribution

REASONS FOR USING HOME FLOOR MILL ATTA:

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The penetration of home floor mill is negligible because of high cost

involvement of home floor machines but the consumers persisting on

quality and who can afford such an investment are very difficult to be

switched.

The table shows various advantages that a consumer perceives in home

flour mill atta.

SR.NO. REASONS PERCEPTION ABOUT

HOME FLOUR MILL

ATTA

1 QUALITY HIGH QUALITY

2 PRICE ECONOMICAL

3 TASTE GOOD

4 FRESHNESS GOOD

5 ROLLABILITY GOOD

6 CONVENIENCE LOW

As the table shows that except the convenience part of it in each and

every aspect the home flour mill gets an edge over packaged and chacki

atta.

The home flour mill atta consumers are very difficult to get switched

because of the investment and perceptions of their users.

Quality is the main reason for the users of home flour mill because the

whole process of the atta manufacturing is in their own presence and the

question of adulteration and malpractices does not arise.

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After having a look at the various reasons which induce the consumers

to choose among the 3 alternatives i.e. chacki atta, packaged atta, and

home flour mill atta lets have a look at various other facts that were

reflected through questionnaire.

DECISION MAKER

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As the data reflected it is the housewife in family who decides between

the alternatives of the atta i.e. chacki atta, packaged atta, and home

flour mill atta.

78% of times it is the housewife who decides between the various

alternatives of atta.

Decision Maker

HousewifeOthers

ANALYSIS OF PACKAGED ATTA USERS

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Packaged atta users as already discussed earlier are the consumers

who have shifted from chacki atta. There are rarely any cases wherein

one will find a shift of consumer from home flour mills to packaged atta.

Reasons of shifting from chacki atta to packaged atta

Reasons for Shifting

ConvenienceQualityBrand LoyaltyCost

As the graph represents the major reasons for shifting from chacki atta

to packaged atta is convenience. A house where almost both husband

and wife are earners there is very less time for activities like selecting

quality of wheat, going to the chacki and getting it grilled even there is

the problem of storage of wheat. These are some of the major cause of

inconvenience which leads to shift of consumer from chacki atta to

branded atta.

Quality of branded atta is perceived not as well as chacki atta because

still the brands are not able to communicate trust to the user and until

and unless this trust is achieved it would be very difficult for anyone to

penetrate this market.

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Some other facts came out that the mere switching is out of the brand

loyalty held in some other products. For e.g. the HLL brand Annapurna is

doing well because of the family it comes from. Same is the case with

Captain Cook whose brand loyalty is from the salt it manufactures and

the trust it is able to build in other brands.

Almost 10% of the respondents felt that the cost of branded atta was

economical and hence they were induced to switch from chacki atta to

branded atta. The other reason here is that the cost of branded atta

remained stable throughout the year whereas the cost of the wheat

depended on season and therefore was highly flexible.

Annapurna and Aashirwad remained market leader with major

respondents using them. The following graph represents usage of

various brands.

Brand Preference

AnnapurnaAashirwadPillsburyCaptain CookOthers

Top of mind recall .

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Top of mind recall

AnnapurnaAashiwadPillsburyCaptain cookOthers

As the graph represents the top of the mind recall for various brands

Annapurna, Aashirwad & Pillsbury almost share equal recall in the minds

of the respondents. Aashirwad has done a lot of catching by advertising

a lot, using its strong Distribution network to the best.

Brand Switching

A fact which would motivate any company to get into the kitchens of the

consumers as fast as it could. Brand switching is very low in case of

packaged Atta user. Almost 70% did not switch or even have tasted

other brand and they remained loyal to already using brand. The rest

30% did switch their brand incase of unavailability of their demanded

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brand.

Brand Switching

No brand switchingBrand switched

Advantage Of Packaged Atta over Chacki Atta

The only advantage that the branded atta carries over chacki atta is that

it has very high convenience factor and is a time saving product.

Changes, most desired in Packaged Atta

The changes demanded by consumers in their existing branded atta is

they want the cost to be reduced and they want the atta to remain fresh

for more longer time.

Important of Packaging

Packaging is a very important criteria for deciding which brand to

purchase good packaging can induce decision in some brand`s favor.

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Almost 60% of the respondents felt that it is of utmost important and it

did induce their buying decision. The main reason for laying importance

to packaging is because it is a daily use product and no one would like

to risk their family health due to negligence in packaging & thus hygiene.

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ANALYSIS OF CHACKI ATTA USERS

The chacki atta users make up the major part of the population. They

should be the target of the packaged atta industry and so it is necessary

to understand their habits and perception and design the whole

manufacturing, marketing and other activities to suit them the best. The

analysis of data of the chacki atta users is done below.

Price of wheat.

10-13 13-15 15-18 18-220%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Rs Per Kg

As the above graph indicates that the general price at which wheat is

brought is between 15-18 and they should be the main target of the

companies because it is between this price range that the packaged atta

falls. The other price range which also has major users are the 13-15

category whereas the category of 10-13 & 18-22 has marginal users.

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Awareness of Packaged Atta among Chacki Atta Users

The awareness of packaged atta does exist among the chacki atta

users. Although the awareness is minimal but the consumers do know

that there exist a branded atta segment and the major recall is of

Aashirwad , Pillsbury & Annapurna brand. Over the years due to

advertising, these brands have made a mark in the packaged atta

industry & also developed awareness for them.

Advantages of Chacki atta over branded atta.

Advantages of Chacki Atta

ConvenienceQualityCostHygiene

As the above diagram reflects Chacki Atta does score very high above

branded atta in various aspects, but among the various aspects cost is

the factor where chacki atta is very much ahead in the minds of the

consumer. The other major factors are the hygienic and the Quality

factors where consumer feels that they stand at an advantage over

packaged atta.

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The other fact that reflected in the data was that when asked if given

cost or quality advantage you would mind switching from chacki atta to

branded atta?

The following are the results.

Cost Advantage Shift

NoYes

Only 40% agreed to switch from Chacki atta to Packaged atta if given

cost advantage whereas 60% would still stick to chacki atta provided

they get the same quality which they are using at present. Another

finding that was revealed in the data was that out of 40% of

respondents who decide to switch to branded atta from chacki atta

almost 75% were from the respondents who used Rs13-15 per kg wheat

whereas the other category would not like to switch if given cost

advantage.

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Quality Advantage Shift

YesNo

As far as the quality advantage shift is concerned 65% of the

respondents would not mind switching from chacki atta to package to

branded atta if given good quality.

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ANALYSIS OF HOME FLOUR MILL USERS

At this stage the home flour mill users are very nominal. There is some

of the very quality conscious users who prefer home flour mill so that

they control the whole process at home.

Reason for preferring home flour mill Atta

QualityMalpracticesConvenienceCost

As the above graph indicates the main reason for using home flour mill

atta is Quality, backed by malpractices. Malpractices are one of the main

reasons because the chacki mill people are apt do such a thing. Almost

a kg or 750gms are lost when we give 10kg wheat to grind. To avoid

such malpractices some consumer switch to home flour mill.

The negative sides of home flour mill are the high cost and

inconvenience. A capital investment of almost Rs 8000 to 10000 is

required when one decides to buy a home flour mill. Also there is a lot of

inconvenience attached to home flour mill like maintenance, electricity

cost, and noise pollution etc which restricts mass switch over to home

flour mill.

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Also, People in Ghaziabad faced a lot of electricity problems & hence

they don’t want to get into all this business of home flour mills. However,

the people who have been using the home flour mill atta users are very

satisfied with the performance of their flour mill and at no point planning

to switch to packaged atta even if given high quality or lower cost

advantage. The satisfaction level of home flour mill is very high because

of service level provided by this mill companies like Navdeep & others.

CONCLUSION

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The next logical step after having seen the findings is to analyze the

findings to lead us to some concrete steps to be taken to build the brand,

but even before that, just by looking at the findings, I have tried to make

some conclusions.

1.) The market is heavily loaded in the favor of ‘Chacki atta’. Chacki atta is

at least perceived to be the best atta as far as quality& freshness is

concerned.

2.) We will have to provide the consumer ‘chacki ka atta’ only and the big

grinding mill ground atta will not do well. This is because even the

miniscule percentage of people using packaged atta want their atta to be

as close to the chacki atta as possible.

3.) The color, texture& packaging of the atta play a major role in the

purchase decision.

4.) The packaged atta users are dissatisfied with the high prices and are

looking forward to packaged atta convenience at chacki atta prices.

ANALYSIS

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After having seen the findings in detail we can now move on to analyze

the findings and use them in the manner in which they can help us. The

entire reason of undertaking this project was to understand the dynamics

of the market which would help successfully launch a new brand of atta

or reposition already existing atta with some additional features. When

one is launching a new brand in any product category, the major

emphasis is on ensuring that the newly launched brand enjoys some

amount of ‘brand equity’. Thus we shall analyze the findings and suggest

actions that need to be taken in order to build a strong brand.

‘Brand equity’ is a set of assets (and liabilities) linked to a brand’s name

and symbol that adds to (or subtracts form) the value provided by a

product or service to a firm and \ or that firm’s customers. The major

asset categories are:

1. Brand awareness

2. Brand loyalty

3. Perceived quality

4. Brand associations

Thus, the management of brand equity involves investment to create

and enhance these assets. In order to manage brand equity effectively

and to make informed decisions about brand building activities, it is

important to be sensitive to ways in which strong brands create value.

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But when we consider the four brand equity assets, two fact come to the

fore :-

Brand awareness will come with time and will infact be partly a result of

successful endeavors in the requisite assets. Apart from that brand

awareness will have to be established with constant advertising. In any

case that is something which takes secondary priority as of now.

Nevertheless some actions will have to be taken during (and even

before) the product launch to create brand awareness, but these will not

be a result of any analysis.

Similarly, brand loyalty will come (or may not come) after trial and

consequent satisfaction of the product by the consumer. In short these

two assets do not require to be dealt with in the form of analysis of

findings. Thus our focus will have to be on perceived quality and brand

associations.

Perceived quality

Perceived quality can be defined as the customer’s perception of the

overall quality or superiority of the product or service with respect to its

intended purpose, relative to alternatives. Perceived quality is, first, a

perception by customers. It thus differs from several related concepts,

such as:

Actual or objective quality

Product based quality

Manufacturing quality

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Perceived quality provides value in several ways.

They are:

1.) Reason to buy

2.) Differentiate/position

3.) Price premium

4.) Channel member interest

5.) Brand extensions

Even when we consider the case of our atta, each of the values will be

provided to the atta by the perception of quality. And hence it becomes

important for us to see ways in which we can build this perception of

quality.

Achieving perceptions of quality is usually impossible unless the quality

claim has substance. Generating high quality requires an understanding

of what quality means to customer segments. Now this where our

findings will come in handy. But before dwelling into that it is necessary

to consider what influences quality. Why do some customers believe that

the quality is high or low? What attributes do customers use to make

overall quality judgments? Thus we need to study the dimensions that

underlie a perceived quality judgement.

Harvard’s David a. Garvin suggests seven product quality dimensions.

These are:

1. Performance: how well does our ‘atta’ makes rotis?

2. Features: does the ‘atta’ have additional desirable features?

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3. Conformance with specifications: what is the incidence of defects?

4. Reliability: will the ‘atta’ make good rotis every time it is used?

5. Durability: how long will the ‘atta’ last?

6. Serviceability: is the service system efficient, competent, and

convenient?

7. Fit and finish: does the product look and feel like a quality product?

Thus we shall use our findings to ascertain each of the above

dimensions by answering these questions.

Performance: now the primary function of an atta is to make good soft

rotis and as we know that most of the chacki atta users give priority to

quality of atta and also to the hygienic part of chacki atta. Also this bit of

good rotis is not the reason for packaged atta users. Thus we will have

to give them good soft atta which makes good rotis. The fact that such

atta will have to be chacki made atta is another interesting fact.

Conformance with specifications and reliability:

In our case these mean that our atta will have to consistently prove to be

as good as chacki atta.

Serviceability:

In our case this would mean strong distribution.

Fit & Finish:

For this we need to look at the changes that the packaged atta users

desired.

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Price

Another variable that can be an important quality cue is price. A high

priced item is almost always associated with good quality. So this brings

us to the important topic of Pricing. Though a high price can translate

into good quality we need to keep in mind the following facts:

It is an entirely new brand

It comes from a company which is relatively unknown

And finally & importantly, most of the packaged atta users &

satisfied chacki atta users want a reduction in price.

At the same time a lesser price than competitors would translate as

‘cheap quality’. Thus it will be advisable to go for Competitive Pricing.

After discussing Perceived Quality at length we shall shift our focus to

the other asset of brand equity i.e. Brand Association.

BRAND ASSOCIATION

Brand Equity is supported in great part by the associations that

consumers make with a brand. These associations might include product

attributes, a celebrity spokesperson or a particular symbol. Brand

associations want the brand to stand for in the customer’s mind. A key to

building strong brands, then, is to develop & implement a brand identity.

Brand identity is a unique set of brand associations that a brand

strategist aspires to create or maintain. These associations represent

what the brand stands for & imply a promise to customers from the

organization members..

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After this we come to the Brand Identity system. To help ensure that the

brand identity has texture & depth, a firm should consider its brand as:

1. A product

2. An organization

3. A person

4. A symbol

The perspectives are very different. Now every brand identity needs to

employ all or even several of these perspectives.

The brand organization perspective focuses on attributes of the

organization rather than those of the product or service. Such

organizational attributes as innovation, a drive for quality and concern for

the environment are created by the people, culture, values, & programs

of the company.

The brand as person perspective suggests a brand that is richer & more

interesting than one based on product attributes. But here again the idea

of finding a person to be associated for a brand that is yet unknown is

not accepted. We should remember that we are in process of building a

brand & as such the brand as person as well as the brand as symbol

association is not the right approach.

Thus it seems to be worthwhile to go for the perspective of the brand as

a product. The product scope dimension says that the core element of a

brands identity is usually its product thrust, which will affect the type of

associations that are desirable & feasible. With what product or products

is the brand associated?

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The quality element is one product related attribute important enough to

be considered separately. But the problem again is that there has not

been any inducement to trial & we are still trying to build the Perceived

Quality asset.

Similarly association with use, users & Country of origin are dimensions

which are irrelevant in our case.

This brings us to the product attributes dimension. Attributes directly

related to the purchase or use of the product can provide functional

benefits and sometimes emotional benefits to the customers a product

related attribute could create a value proposition by offering something

extra or by offering something better.

Thus we will have build an association of the brand with the product

‘atta’ & further we will have to strive to associate our product with some

attribute . This can be our brand identity. This brand identity will initially

form the Core identity of our brand as being healthy & will eventually

lead to some extended identities.

After all this the bottom line is: The brand identity needs to provide a

value proposition to the customer. Brands value proposition is a

statement of the functional, emotional & self expressive benefits

delivered by the brand that provide value to the customer.

We can see that the functional benefits that our product will deliver will

be: rich healthy atta, which is of the right colour & which, makes good

soft rotis, which stay soft longer.

The emotional benefit delivered will be of feeling safe with a healthier

atta.

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The self expressive benefit will be delivered to the housewife who will

express her concern for her family by buying an atta, which is healthy &

economical.

Thus, finally with theses endeavors we can hope to achieve a Brand

Customer relationship.

With an identity in place & a value proposition specified, implementation

begins. Communication objectives need to be established & execution

planned & implemented. The place to start is with the brand position

statement the cornerstone of the communications program. When a

brand position exists, the brand identity & value propositions can be

developed fully.

Brand position is the part of the brand identity & value proposition that is

to be actively communicated to the target audience & that demonstrates

an advantage over competing brands.

Brand Positioning, as described by Al Ries & Jack Trout, is a mind

game. They describe positioning as a perception in the minds of the

consumer about your product. Thus positioning is where in the consumer

mind space does your brand figure. Now obviously while brand a unique

& favourable position in the consumers mind space.

Thus to do this we need to study the consumer mind space with respect

to that product category. This is done through ‘Perceptual Mapping’.

We know from our Findings that the chacki atta users cite Quality of the

atta as the main reason for using chacki atta & the packaged atta users

cite convenience as the main reason. Thus we shall work our perceptual

map around these two axes.

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As can be seen Chacki atta takes a position of high on quality but low on

convenience. Most of the packaged atta are clustered around the same

place as seen in the perceptual map. Pillsbury atta due to its strong

position as chacki atta goes higher in the quality axis. But the point to be

noted is that on the convenience axis not much can be differentiated

between the different brands. This means that we cannot play on the

convenience position at all simply because all the packaged atta’s are

convenient. Also we cannot immediately fight with the chacki atta on the

quality position as the sit high up (not more than Pillsbury at least). Thus

we realize the fallacy of this perceptual map. Since we are not

contesting with the chacki class for space immediately we shall our focus

to making a perceptual map for the different brands.

The most strategically logical position will not be worth implementing if a

brilliant execution cannot be found. Thus the onus lies on the

communication to carry the desired position across to the consumer.

Whether this is done or not should be found out regularly & this is called

Tracking. But as is clear implementation & tracking is purely a

communication domain & is out of the purview of this project.

Thus we have worked through the entire gamut of activities needed to

build brand equity & have decided on certain facts. Since it is yet not

comprehensive we can only venture to make certain suggestions for the

Brand.

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SUGGESTIONS

Finally, after having analyzed the findings in some detail, we are in a

position to make a few suggestions as to the actions to be taken towards

building the brand & successfully launching the new product & brand.

Suggestion

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1. Organize housewives kitty parties & gatherings & ask them to use

& try the product for the party. This will serve the dual purpose of

trial & feedback & thus can be done even before the launch as a

method of test launching.

2. Have test launch with various office canteens where the shift

would be fast because the key attribute to them is the cost and if

the response is positive then offer tie-ups wherein a contract can

be signed which would be a win-win situation for both the canteen

as well as the company.

3. Create more awareness among the public about the quality of the

branded atta with the help of various tools of communication.

4. Create awareness about the various malpractices done by chacki

operators and how adulteration is done by them.

5. Provide some more value to the product with giving some freebies

and also sharing various recepies with consumer.

6. Communicate atta as a time saving product because time saving

products are call for the day.

QUESTIONNAIRE THROUGH WHICH DATA WAS

COLLECTED

Dear Sir/Madam,

96

It is my pleasure to take this opportunity to reach you all through

this questionnaire. I hope with your expert knowledge this project would

be a success.

Name:

Age:

Occupation:

No of Members in Family:

Monthly Consumption of Atta:

Caste:

Religion:

No Of time Consumption of Atta (in any form) in a day:

(1) Breakfast (2) Lunch (3) Dinner

frequently

occasionally

never

( tick wherever applicable)

Current Usage:

Packaged Atta [ ] Chacki Atta [ ] Home chacki Atta [ ]

If using Packaged Atta please answer the following questions.

(1)Whose decision was it to go for packaged atta?

(2)What were you using before using packaged atta?

(3)Any major reason for switching to packaged atta?

[ ] convenience [ ] quality [ ] brand loyalty [ ] cost [ ] others please

specify

______________

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(4) Which is your current brand?

(5)Which other brand are you aware of?

(6) Have you ever used any other branded atta?

[ ] Yes [ ] No

(7) What advantage do you think does your brand give over any other

brand of branded atta?

[ ] convenience [ ] quality [ ] brand loyalty [ ] cost [ ] others please

specify

__________

(8) What advantage do you think does your brand give over chaki

atta?

[ ] convenience [ ] quality [ ] brand loyalty [ ] cost [ ] others please

specify

__________

(9) If asked as an expert what other changes would you suggest to

your current brand?

(10) If other brands implement the above changes would you switch

your brand?

(11) Do you give importance to the package designing of branded

atta?

[ ] Yes [ ] No

If using Chaki Atta please answer the following questions

(1)At what price do you buy wheat?

98

[ ] 10-13 [ ] 13-15 [ ] 15-18 [ ]18-22 [ ]>22

(2)Are you aware of branded atta?

[ ] Yes [ ]No

(3)Which brand are you able to recollect if you are aware of branded

atta?

(4) According to you what advantage does chaki atta have above

branded atta?

[ ] convenience [ ] quality [ ] hygienic [ ] cost [ ] others please

specify

__________

(5) If given Cost Advantage would you switch from chaki atta to

branded atta?

[ ] Yes [ ] No

(6)If given Quality Advantage would you switch from chaki atta to

branded atta?

[ ] Yes [ ] No

If using Personal floor mill please answer the following

questions.

(1) Why did you go for Personal floor mill?

[ ] convenience [ ] quality [ ] hygienic [ ] cost [ ] malpractices [ ]

others please specify__________

(2) Are you aware of branded atta?

[ ] Yes [ ] No

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(3) Which brand are you able to recollect if you are aware of branded

atta?

(4) If given Cost Advantage would you switch from Personal floor mill

atta to branded atta?

[ ] Yes [ ] No

(5) If given Quality Advantage would you switch from Personal floor

mill atta to branded atta?

[ ] Yes [ ] No

(7)Are you satisfied with performance of your personal floor mill?

[ ] Yes [ ] No

I thank you for sharing your valuable time and knowledge

patiently.

BIBLIOGRAPHY

1. MARKETING MANAGEMENT : PHILIP KOTLER

100

2. http://www.naukrihub.com/india/fmcg/overview/branded-flour/

3. Wikipedia.org

4. www.fibre2fashion.com

5. www.drypen.in

6. www.Smallbusinessnotes.in

7. www.Indiainfoline.com

8. www.marketing.about.com