Top Banner
SUMMER PROJECT REPORT On CONSUMER BEHAVIOUR TOWARDS READY- TO-EAT FOOD PRODUCTS prepared for and presented to RURAL OUTREACH PRIVATE LIMITED UNDER THE GUIDANCE OF ORGANISATION GUIDE INSTITUTIONAL GUIDE Mr. Anadi Anand DR.RAKHI GUPTA. SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF MASTERS OF BUSINESS ADMINISTRATION FROM GAUTAM BUDDHA TECHNICAL UNIVERSITY By
238

Summer project report

Nov 02, 2014

Download

Business

Adeel Khan

check dis
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Summer project report

SUMMER PROJECT REPORT

On

CONSUMER BEHAVIOUR TOWARDS READY- TO-EAT FOOD

PRODUCTS

prepared for and presented to

RURAL OUTREACH PRIVATE LIMITED

UNDER THE GUIDANCE OF

ORGANISATION GUIDE INSTITUTIONAL GUIDE

Mr. Anadi Anand DR.RAKHI GUPTA.

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF

DEGREE OF MASTERS OF BUSINESS ADMINISTRATION FROM

GAUTAM BUDDHA TECHNICAL UNIVERSITY

By

NAME: - MOHD AMIR

Roll No 1212470080

(3rd Semester 2012 – 2014)

Page 2: Summer project report

INSTITUTE OF CO-OPERATIVE & CORPORATE

MANAGEMENT, RESEARCH & TRAINING, LUCKNOW

ACKNOWLEDGEMENT

I owe a great many thanks to a great many people who helped and supported me during the

writing of this project. My deepest thanks to Dr.Rakhi Gupta the Guide of the project for

guiding and correcting various documents of mine with attention and care. She has taken

pain to go through the project and make necessary correction as and when needed. I express

my thanks to the Principal Dr.Ajay Prakash for extending his support. My deep sense of

gratitude to Mr.Anadi Anand Supervisor RURAL OUTREACH PRIVATE LIMITED

for support and guidance. Thanks and appreciation to the helpful people at Rural Outreach

Private Limited for their support. I would also thank my Institution and my faculty

members without whom this project would have been a distant reality. I also extend my

heartfelt thanks to my family and well wishers.

Page 3: Summer project report

DECLARATION

I hereby declare that the project work entitled ‘‘CONSUMER BEHAVIOURTOWARDS”

READY- TO-EAT FOOD PRODUCTS submitted to the ICCMRT, is a record of an original

work done by me under the guidance of Mr. Anadi Anand and Dr. Rakhi Gupta and this project

work has not performed the basis for the award of any Degree or diploma and similar project if any.

 

MOHD AMIR

 ROLL NO 1212470080

Page 4: Summer project report
Page 5: Summer project report

CONSUMER BEHAVIOUR TOWARDS READY-TO-EAT

FOOD PRODUCTS

Page 6: Summer project report

C O N T E N T S

Sl. No. Chapter Particulars

CERTIFICATE

ACKNOWLEDGEMENT

LIST OF TABLES

LIST OF FIGURES

LIST OF APPENDICES

1 INTRODUCTION

2 REVIEW OF LITERATURE

2.1 Awareness of consumers towards branded products

2.2 Purchase behaviour of consumers

2.3 Brand preference

2.4 Factors influencing brand preference

2.5 Alternative purchase plans

3 METHODOLOGY

3.1 Description of study area

3.2 Sampling design and data collection

3.3 Analytical tools employed in the study

Page 7: Summer project report

4 RESULTS

4.1 Awareness of consumers towards branded ready to eat food

products.

4.2 Purchase behaviour of consumers towards ready to eat food

products.

4.3 Brand preference of the consumers.

4.4 Factors influencing brand preference.

4.5 Alternative purchase plans of the consumers.

5 DISCUSSION

5.1 Awareness of consumers towards branded ready-to-eat food

products.

5.2 Purchase behaviour of consumers towards ready to eat food

products.

5.3 Brand preference of the consumers.

5.4 Factors influencing brand preference.

5.5 Alternative purchase plans of the consumers.

6 SUMMARY AND POLICY IMPLICATIONS

Page 8: Summer project report

Sl. No. Chapter Particulars

7 REFERENCES

APPENDICES

ABSTRACT

Page 9: Summer project report

LIST OF TABLES

TableTitle

No.

4.1 General information of selected samples in Hubli and Dharwad

4.2 Brand awareness of consumers about biscuits among different age groups

4.3 Brand awareness of consumers about chips among different age groups

4.4 Brand awareness of consumers about fruit juice among different age groups

4.5 Brand awareness of consumers about ice creams among different age groups

4.6 Influence of media to create awareness about the brands

4.7 Buyers and non-buyers of ready to eat food products

4.8 Reasons for purchasing ready to eat food products by consumers of Hubli –

Dharwad

4.9 Reasons for not purchasing ready to eat food products by consumers of Hubli

– Dharwad

4.10 Monthly expenditure of households on food items

4.11 Monthly expenditure of households on ready-to-eat food products

4.12 Frequency and place of purchase by the respondents

4.13 Nature of purchase decision among different age groups

4.14 Influence of income on purchase decisions on ready to eat food products

4.15Influence /impact of education to make purchase decision on ready to eat food

products

4.6 Preference for type of biscuits among different age groups

4.17 Preference for variety of chips among different age groups

4.18 Preference for flavour in chips among different age groups

4.19 Preference for type of fruit juice among different age groups

Page 10: Summer project report

4.20 Preference for type of ice creams among different age groups

4.21 Preference for flavour in ice creams among different age groups

4.22 Brand preference for biscuits

4.23 Brand preference for chips

4.24 Brand preference for fruit juice

Page 11: Summer project report

TableTitle

No.

4.25 Brand preference for ice creams

4.26 Factors influencing brand preference

4.27 Alternative purchase plans of ready to eat food products

Page 12: Summer project report

LIST OF FIGURES

FigureTitle

No.

1 Brand awareness of consumers about biscuits among different age

groups

2. Brand awareness of consumers about chips among different age

groups

3. Brand awareness of consumers about fruit juice among different age

groups

4. Brand awareness of consumers about ice creams among different

age groups

5. Influence of media to create awareness about the brands

6. Monthly expenditure of households on food items

7. Monthly expenditure of households on ready-to-eat food products

Page 13: Summer project report

LIST OF APPENDICES

AppendixTitle

No.

1 Questionnaire

Page 14: Summer project report

1. INTRODUCTION

There is nobody in the world who is left out of the class of consumers.

The consumer-hood continues till one’s last breath in the world.

The consumer purchases a variety of goods and services to satisfy his wants and he is

always influenced in his purchasing activities by some considerations which lead him to

select a particular commodity or a particular retail store in preference to others. So,

consumer buying is more complex. Consumer purchases are likely to be influenced by

physiological, psychological and sociological factors. The commodities and services are

brought by the consumer to satisfy his basic needs, for comfort, pleasure, recreation and

happiness. Every individual has physiological need such as hunger, shelter, thirst, etc.,

which have to be satisfied for survival. The psychological factors like status prestige and

social factors like friends, neighbours, job and relatives influence their purchasing

activities.

People bear certain beliefs and attitudes towards certain types of goods, brands of

commodities and retail outlets based on their previous experience. When there is a need,

they are able to discover some new commodities capable of satisfying their needs. Before

the commodities and brands are selected, these commodities must compete successfully

against alternatives in the market. The selection of a particular commodity becomes

important for consumer since there are wide varieties of consumer goods in the market.

Again selection of a particular commodity depends on income of the consumer and

necessity of the product to the individual. Before the selection of the commodity

purchased, an individual requires information regarding the various sources of supply of

the commodity, its brands, relative merits and demerits, uses and value of their

characteristic features and services offered. The common sources through which individual

gathers information are from advertising media (television, radio and news papers), friends,

retailers in the locality, displays in shops and food labels.

India is one of the largest food producers of the world with the organised sector accounting

for food output worth US $34827 million, only a small percentage of its farm produce is

Page 15: Summer project report

processed into value-added products. For instance, even though the country is the second

largest producer of fruits and vegetables, hardly two per cent of the production is

processed. This underlines the enormous scope for investing in the processed food sector in

the areas of infrastructure, packaging and machinery. India, in fact, needs US $28 billion of

investment to raise its food processing levels by 8-10 per cent.The potential for

investment in this sector is further accentuated by the following factors:

• A huge and exponentially growing demand represented by a market of one billion people

spending on an average about 50 per cent of household expenditures on food coupled by a

scenario of rapid urbanization and changing lifestyles.

• A 30 million upper and middle class segment of the total population

consume processed and packaged food with another 200 million people,

projected to shift to this group by 2010. Thanks largely to rapid

urbanization and changing lifestyles.

• Well-developed infrastructure and distribution network.

• Increase in per capita income and purchasing power.

• Large pool of scientific, technical and skilled manpower.

• Introduction of series of investment friendly initiatives by the

Government including strengthening and augmenting of road and rail

network, modernization of ports, prioritization of infrastructure for post

harvest management, logistics (including cold chain), markets, retailing,

food processing.

• Introduction of a number of liberal policy initiatives by the Government

to boost food processing activities.

Page 16: Summer project report

• 53 food parks approved to enable small and medium food and beverage

units to set up and to use capital intensive common facilities such as cold

storage, warehouse, quality control labs, effluent treatment plant, etc.

Page 17: Summer project report

Over the past five decades, India has taken giant steps in producing food

grains, milk, fruits and vegetables. The production of raw food materials is

estimated to worth over Rs. 60,000 crore. After primary, secondary and tertiary

processing, the total size of the industry is estimated to be as high as Rs.

1,10,000 crore. This cost overrun reflects the opportunities that food processing

industry offers to the economy as a whole and entrepreneurs in individual. Big

opportunities lie in upgradation from commodities to packaged and branded

products and convenient foods, which offer value for money, products focused

towards children and young adults and products catering to those who lead a fast

modern day life. Realizing the potential and in order to provide further boost, the

government has exempted from excise duty for condensed milk, ice cream,

preparations of meat, fish and poultry, pectins, pasta and yeast. Further, excise

duty on certain ready-to-eat packaged foods is reduced to 8 per cent from 16 per

cent. The food processing industry will also be benefited from the reduction in

excise duty on paper, a cut in customs duty on major bulk plastics and a

reduction of customs duty on packaging machines, which would reduce

packaging costs (Budget, 2007).

The Food Processing Industry In India

The Food processing industry has an important role to play in linking the

farmers to the final consumers in the domestic as well as the international

markets. Food processing combined with marketing has the potential of solving

the basic problems of agricultural surpluses, wastages, rural jobs, and better

remuneration to the growers. In the next ten years, food production is expected to

double. These produces, if processed and marketed smartly, can make India a

leading food supplier of the world.

India with a population of 1.08 billion (growing at about 1.70% per

annum) provides a large and growing market for food products. Food products

are the single largest component of private consumption expenditure, accounting

Page 18: Summer project report

for as much as 49.00 per cent of the total spending. Furthermore, the upward

mobility of income classes and increasing need for convenience and hygiene is

driving demand for (a) perishables and non food staples and (b) processed foods.

Also, eating out is a booming practice in urban India and processed foods are

accepted as alternative to the home cooked food because of the convenience it

offers. Also, with the globalization of trade and availability of high speed

logistics, food retailers in developed countries are sourcing an year-round supply

of fruits and vegetables from developing countries. Thus, both for local

consumption as well for export there is a year round opportunity for fruits and

vegetables, meat and poultry products and ready-to-eat processed foods.

The total exports of Indian food processing industry had increased by

about three times to Rs. 53,000 crores in 2003-04, from Rs. 17,600 crores in

2002-03. Considering the greater potential for food processing industry in India,

government had committed to encourage various activities for the development

of this sector. Indian government had been giving importance to the food

processing sector, by way of fiscal incentives to encourage commercialization

and value addition of agricultural produce, for minimizing pre/post harvest

wastage, generating employment and export growth. The government gave five-

year tax holiday for new food processing units in fruits and vegetable processing.

From 2000-01 to 2006-07 government had also approved proposals for joint

ventures; foreign collaboration, industrial licenses and 100.00 per cent export

oriented units envisaging an investment of Rs. 19,100 crores during 2002-03.

Out of this, foreign investment was over Rs. 9100 crores.

The processed food industry should introduce innovative new products of

high quality at low cost in small package sizes in ready-to-eat format. To cash on

this booming opportunity, smart players have to enter the growing market with a

high potential of retail Foreign Direct Investment (FDI).

Ready-to-eat food products

Page 19: Summer project report

Unlike olden days where man used to have his food lavishly and slowly,

the present trend changed the habits of foods, which are simple and easy to

digest. Hence, the existence of these foods fulfilled all the needs of modern

human being. Canned foods, convenience foods, fast foods, frozen foods, instant

products, dried foods, preserved foods, etc. all comes under ready-to-eat foods.

The food habits in India have changed due to the western influence and the usage

of these foods is also on the rise.

Page 20: Summer project report

In India, majority of food consumption is still at home. Nevertheless, out

of home food consumption is increasing due to increase in urbanization,

breaking up of the traditional joint family system, desire for quality, time which

translates into an increased need for convenience, increasing number of working

women, rise in per capita income, changing lifestyles and increasing level of

affluence in the middle income group had brought about changes in food habits.

In the last two decades, the share of urban population has increased from 23.30

per cent in 1981 to 27.80 per cent in 2001. During the same period the female

work participation rate had increased from 19.70 to 25.70 per cent. The per

capita income increased from Rs. 7,328 in 1980-81 to Rs 10,306 in 2000-01. The

change in food habits was evident from the growth of food processing industries.

Generally, food is prepared depending on the habits, tastes, social status,

economic factor, availability, traditions, habitats, etc., of the people of that

region. The most sought after in the present age are the ready- to- eat foods.

Ready-to-eat food is food offered or exposed for sale without additional

cooking or preparation, which is packaged on the premises where they are being

sold and are ready for consumption.

With the income level rising, demand for milk, meat, fish, fruits and

vegetables is also increasing in India. With more urbanization, Indian families

also consume more processed foods, more ready-to-eat foods, etc. Asian

Americans, now numbering over 10 million along with the other 13 million

persons of Indian origin spread all over the world are a huge potential market for

the Ready-to-eat (RTE) foods out of India. This creates a scope for the producers

to come out with a long range of dishes including the usual meals. India had

been at the forefront for variety of dishes both in domestic and global market.

Ready-to-eat foods are very popular in the western region of the world. Even

India is being influenced by these ready-to-eat foods.

Page 21: Summer project report

Development of the metropolitan cities due to increase in population,

emergence of industries, evolution of various new factors, time factor, etc.,

created the need for ready-to-eat foods in the market. Due to industrialization,

the labour category is getting attracted to it because of better emoluments and

hence there is shortage of home maid-servants. Due to this, the housewives, in

order to save time started using ready-to-eat foods.

As the literacy rate is increasing among the women, a large number of

them in our country are taking up jobs to setup their own status in the society and

to use the extra income generated. These are creating the need for ready-to-eat

foods. Earlier times, a single family consisted of many people i.e., a group of

several nuclear families were living in a single place. Hence, larger quantities of

the food were used to be prepared. But as these joint families started

disappearing due to various reasons, each single family started using these ready-

to-eat foods in order to save time and energy.

Due to establishment of multi- national companies in India, the lady of

the house also started working, because of which there is no time to prepare food

at home. Hence, this created the need for using ready-to-eat foods. The standard

of living is also changing due to raise in income level, influence of western

countries, more global trade, traveling etc., hence, people are changing their taste

to ready-to-eat foods more compared to the old traditionally prepared foods.

In the modern era, the media, particularly electronic and print media, are

playing an important role in creating awareness of the products manufactured

and released in the market.

All these factors are responsible for the popularity of ready-to-eat food

products in Indian market. The marketers should see to it that the ready-to-eat

food is available to the consumers without any difficulty at competitive rates.

The products should be provided to consumers by keeping in mind as when they

Page 22: Summer project report

want, where they want and the manner in which they want. These methods help

in increasing the sales of the product with good feed back from the customers

and creating niche for ready-to-eat foods in the market.

Problem focus

Several firms had been engaging in production and marketing of ready-to-

eat food products. Hence, the consumers had a greater option to choose from. In

this context, a study on consumer behaviour was seemed to be important to

understand the buying behaviour and preferences of different consumers.

Understanding the consumer behaviour would help the firms in formulating

strategies to cater to the needs of the consumer and thereby increase their market

share. Consumer’s taste and preference were found to change rapidly, especially

in a dynamic environment. Keeping in view the importance of consumer

behaviour and consumption pattern, the present study was under taken with the

following objectives.

Page 23: Summer project report

Objectives of the study

The specific objectives of the study were:

i. To ascertain the awareness of consumers towards branded ready-to-eat

food products.

ii. To study the purchase behaviour of ready-to-eat food products.

iii. To evaluate brand preference of the consumers.

iv. To study the factors influencing brand preference.

v. To evaluate alternative purchase plans of the consumers.

Limitation of the study

This study was based on primary data collected from sample consumers by

survey method. As many of the consumers furnished the required information

Page 24: Summer project report

from their memory and experience, the collected data would be subjected to

recall bias. The study area was limited to Hubli and Dharwad cities and the

findings may not be applicable to other markets, as vast difference exist among

the consumers with regard to demographic and psychographic characteristics.

Hence, the findings of the study may be considered appropriate for the situations

similar to study area and extra care should be taken while generalizing the

results.

Page 25: Summer project report

2. REVIEW OF LITERATURE

In this chapter, research work done in the past regarding awareness,

purchase behaviour, brand preference, factors influencing brand preference and

alternative purchase plans has been reviewed and presented under the following

sub-headings.

2.1 Awareness of consumers towards branded products

2.2 Purchase behaviour of consumers

2.3 Brand preference

2.4 Factors influencing brand preference

2.5 Alternative purchase plans

2.1 AWARENESS OF CONSUMERS TOWARDS BRANDED

PRODUCTS

Aaker (2000) opined that, brand awareness was remarkably durable and

sustainable asset. It provides a sense of familiarity especially in low-

involvement products such as soaps, a sense of presence or commitment and

substance and it was very important to recall at the time of purchasing process.

Page 26: Summer project report

Apart from the conventional mass media, there were other effective means to

create awareness viz., event promotions, publicity, sampling and other attention

getting approaches.

Brown et al. (2000) reported that the need for effective nutritional

education for young consumers has become increasingly apparent, given their

general food habits and behaviour, particularly during adolescence and analyzed

that the interaction between young consumers’ food preferences and their

nutritional awareness behavour, within three environments (home, school and

social interaction appears to be somewhat overshadowed by the young

consumers, while developing an independence trait, particularly, during the

adolescent years. The authors suggested that food preferences are often of a ‘fast

food’ type and consequently the food habits of many young consumers may fuel

the consumption of poorly nutritionally balanced meals. While young consumers

were aware of healthy eating, their food preference behaviour did not always

appear to reflect such knowledge, particularly within the school and social

environments.

Beverland (2001) studied the level of brand awareness within the New Zealand

market for ZESPRI kiwi fruit. The effectiveness of this branding strategy

employed by kiwi fruit, New Zealand was studied. The implications of the

findings for agribusiness in general using the data collected from surveys of kiwi

fruit consumers (n=106) outside three major super market chains in Auckland,

New Zealand, suggested that the level of brand awareness for ZESPRI is low

among consumers. It is indicated that brand awareness could be increased

through a relationship- making programme involving targeted marketing and

supply chain management.

Chen (2001) expressed a different thought on brand awareness that it was

a necessary asset but not sufficient for building strong brand equity. In this view,

a brand could be well known because it had bad quality.

Yee and Young (2001) aimed to create awareness of high fat content of

pies, studied consumer and producer awareness about nutrition labeling on

Page 27: Summer project report

packaging. For this, seven leading pie brands were analyzed for fat content and

are ranged from 7.10 to 19.20 per cent fat. Potato topped or cottage pies had the

lowest fat content (7.10 - 9.20% fat). Most pies did not display nutritional

labeling on packaging. Over half of the consumers (52.00%) who responded to

the survey (42.00% response rate) were aware of the campaign. The study was

successful at raising consumer awareness about the high fat content of pies and

influencing the food environment with a greater availability of lower fat pies. It

is possible to produce acceptable lower fat pies and food companies should be

encouraged to make small changes to the fat content of food products like pies.

Potato topped pies are lower in fat and are widely available. Regular pie eaters

could be encouraged to select these as a lower fat option.

Nandagopal and Chinnaiyan (2003) studied that the level of awareness

among the rural consumers about the brand of soft drinks was high which was

indicated by the mode of purchase of the soft drinks by “Brand Name”.

The major source of brand awareness was word of mouth followed by

advertisements, family members, relatives and friends

Ramasamy et al. (2005) reported that, the buying behaviour is vastly

influenced by awareness and attitude towards the product. Commercial

advertisements over television was said to be the most important source of

information, followed by displays in retail outlets. Consumers do build opinion

about a brand on the basis of which various product features play an important

role in decision making process. A large number of respondents laid emphasis on

quality and felt that price is an important factor while the others attached

importance to image of manufacturer.

Page 28: Summer project report

.

2.2 PURCHASE BEHAVIOUR OF CONSUMERS

Balaji (1985) studied fish consumption behaviour of 526 consumers in

Vishakapatnam city. The study revealed that 77.00 per cent of respondents

consumed fish for dinner and 22.00 per cent for lunch. About 30.00 per cent of

the respondents did not consume fish on festival days, as those days were

considered auspicious, while the rest had no notations and consumed fish,

irrespective of festivals.

Jorin (1987) examined changes in spending power and buying habits of

Swiss consumers since the beginning of the 20th century and in the more recent

past. Current trends include greater emphasis on health and safety of foodstuffs

and less attention to price, increased demand for low calorie light products and

increased demand for organically grown foods. For young people, more concern

with enjoyment and less for health, with more meals eaten from home and

generally an increased demand for convenience foods. The prospects for high

quality branded products were seen to be good.

Puri and Sanghera (1989) conducted a study to know the consumption

pattern of processed products in Chandigarh. Jam was found to be most popular,

irrespective of income. Orange squash consumption was maximum in high and

middle – income families. Pineaaple juice consumption increased with a rise in

the income.

Rees (1992), in his study revealed that factors influencing the consumer’s

choice of food were flavour, texture, appearance, advertising, a reduction in

traditional cooking, fragmentation of family means and an increase in

‘snacking’.etc. Demographic and household role changes and the introduction of

microwave ovens had produced changes in eating habits. Vigorous sale of

Page 29: Summer project report

chilled and other prepared foods was related to the large numbers of working

wives and single people, who require value convenience. Development in

retailing with concentration of 80.00 per cent of food sales in supermarkets was

also considered to be important. Consumers were responding to messages about

safety and healthy eating. They were concerned about the way in which food was

produced and want safe, ‘natural’, high quality food at an appropriate price.

Results of the study conducted by Joshi (1993) in Dharwad on food

purchasing habits and consumer awareness among rural and urban housewives

indicated that majority of the urban respondents purchased the groceries like

cereals (52.00%), pulses (64.00%), oils (73.00%), spices (72.00%) and sugar

(69.00%) on monthly basis. While perishables like fruits (48.00%), eggs

(41.00%) and meat (46.00%) were purchased once in week and milk (48.00%)

was purchased daily. Rural respondents purchased cereals (70.00%), pulses

(71.00%), oils (71.00%), spices (71.00%), sugar (71.00%) and fruits (73.00%)

once in week and milk (78.00%) daily. Regarding place of purchase 83.00 per

cent of urban and 99.00 per cent of rural respondents purchased all the groceries

like sugar, rice, and wheat from fair price shops. Both rural and urban

respondents purchased groceries (99.00% each), perishables (89.00% and

99.00% respectively), ready to use foods (97.00% and 87.00% respectively) and

commercially available foods (96.00% and 6.00% respectively) from retail

shops. Price, quality and weight of the products were the important factors

considered by both rural and urban respondents while purchasing of food items.

Ragavan (1994) reported that, quality, regular availability, price, accuracy

in weighing and billing, range of vegetables and accessibility as the factors in the

order of importance which had influenced purchase of vegetables by respondents

from modern retail outlet.

Dhillon et al. (1995), while studying the purchase behaviour in Ludhiana, rural

and urban respondents ranked nearby market (mean score of 1.47 for rural and

2.10 for urban)

Page 30: Summer project report

and main market (mean score of 0.88 for rural and 1.38 for urban) as their first

and second preference of order respectively for the purchase of food items. The

prime factor indicated by the rural respondents for buying their food items was

appearance with mean score of 4.01, followed by price, quality and place of

buying to which they ranked second, third and fourth with mean scores of 3.81,

3.45 and 2.96 respectively. But urban respondents visualized these factors little

differently and ranked quality, appearance, place of buying and expiry date as

first, second, third and fourth ranks with mean score of 4.69, 4.01, 3.20 and 3.05

respectively.

Singh et al. (1995) examined the factors influencing consumer

preferences for milk. They were milk quality, convenient, availability, supply in

quantity desired, flavour, colour, freshness and mode of payment which showed

higher levels of consumer satisfaction.

Purchasing practices of consumers in Parbhani was studied by Kulkarni

and Murali (1996). The results revealed that 83.50 per cent of consumers were

seeking the information from television regarding the products availability and

this was followed by neighbours (71.00%) and newspapers (69.50%).

Consumers preferred retail market for the purchase of groceries (65.00%), milk

and milk products (100.00%), vegetables (100.00%), fruits (100.00%) and

snacks (75.00%) and they adopted cash payment. Majority (75.00%) of the

consumers preferred quality for the purchase of food.

Sundar (1997) revealed that, grocery department of Saravana Bava

Cooperative Supermarket, Cuddalore was enjoying favorable images of

consumers in the attributes, such as, equality of price, behaviour of sales persons,

moving space, location, correctness of weight, packaging of goods, number of

sales persons and convenient shopping hours. At the same time, the image was

weak in the attributes, such as, quality of goods, availability of range of products,

variety of goods, acceptance of returns, credit facility, door delivery and sales

Page 31: Summer project report

promotional measures.

Amitha (1998) studied the factors influencing the consumption of selected

dairy products in Bangalore city. The results of the study revealed that, income

and price significantly influenced the consumption of table butter. Price had a

negative impact and income a positive impact on consumption.

A socio-economic influence of rural consumer behaviour studied by

Sayulu and Reddy (1998), concluded that frequency of purchase of commodities

by rural consumers was highly influenced by the type and nature of the products.

Products like groceries (40.35%) and others which included vegetables, milk etc.

(48.25%) purchased on daily basis and 33.33 per cent and 42.98 per cent of them

purchased these products on weekly basis. Cash purchase was highest in case of

products like groceries (44.74%) followed by credit purchase with 38.60 per cent

and 21.06 per cent respectively. Price of the goods was considered to be the most

important factor by more than 88.00 per cent of the respondents followed by

easy availability (66.66%) and neighbours (54.00%).

Kamalaveni and Nirmala (2000) reported that, there is complete

agreement between ranking given by the housewives and working women

regarding the reasons promoting them to buy Instant Food Products. Age,

occupation, education, family size and annual income had much influence on the

per capita expenditure of the Instant Food Products.

Srinivasan (2000) revealed that, consumer with higher educational level

was found to consume more processed products. The quantities of processed

fruit and vegetable products were consumed more in high income group. The

tolerance limit of price increase identified was less than 5 per cent, any price

change above this limit, would result in discontinuance of the use of the

processed product. Consumers preferred processed products because of

convenience of ready-to-eat form.

Page 32: Summer project report

Hugar et al. (2001) carried out a study on dynamics of consumer behaviour in

vegetable marketing in Dharwad city. Low income groups purchased lesser

quantity (3.25 kg/week) of vegetables as compared to medium (5.40 kg/week)

and high income groups (4.66 kg/week). Majority of low income group preferred

to purchase vegetables from producers because of reasonable price. High and

medium income families preferred stall vendors for the purchase of vegetables

because of better quality and correct weighment.

Prell et al. (2002) conducted a study to examine the factors influencing

adolescents’ fish consumption in school. Fish consumption was assessed by

observation on 4 occasions.

Page 33: Summer project report

Attitudes towards the fish, friends’ behaviour and perceived control were

important predictors of the intention to eat fish and barriers for fish consumption

were a negative attitude towards both smell and accompaniments and fear of

finding bones. But the eaters of fish were more satisfied with the taste, texture

and appearance of the fish and rated safety significantly higher than those who

resisted. They also thought to a greater extent that the fish was healthy and

prepared with care. The results suggested that, it is important to alter dishes so

that they appeal to children and to pay attention to the whole meal,

accompaniments included. Finally it was recommended to convey the pupils that

the fish served would be healthy and prepared with care.

Nagaraja (2004) opined that, buying behaviour is very much influenced

by experience of their own and of neighbour consumers and his family. Above

all, the quality of the product and its easy availability were the primary and the

vital determinants of his buying behaviour. Consumers were influenced by touch

and feel aspect of any promotional activity.

Shivkumar (2004) showed that the consumer, irrespective of income

groups, was mainly influenced by the opinions of their family members to

purchase. Consumers were also influenced by the dealers’ recommendation,

followed by advertisement.

2.3 BRAND PREFERENCE

Gluckman (1986) studied the factors influencing consumption and

preference for wine. The explicit factors identified were, the familiarity with

brand name, the price of wine, quality or the mouth feel of the liquid, taste with

regard to its sweetness or dryness and the suitability for all tastes. Some of the

implicit factors identified through extensive questioning were colour and

Page 34: Summer project report

appearance. Most of the consumers seemed to prefer white wine to red.

Consumers preferred French or German made wines to Spanish or Yugoslavian

wines.

Kumar et al. (1987) observed the factors influencing the buying decision

making of 200 respondents for various food products. Country of origin and

brand of the products were cross- tabulated against age, gender and income.

Results revealed that the considered factors were independent of age, education

and income. The brand image seemed to be more important than the origin of the

product, since the consumers were attracted by the brands.

Shanmugsundaram (1990) studied about soft drink preference in Vellore

town of North Arcot district in Tamil Nadu. The study revealed that, the most

preferred soft drink among respondents as Gold spot (26.00%), followed by

Limca (24.80%). It was found that the taste was the main factor for preference of

particular brand and among the media; television played a vital role in

influencing consumer to go for a particular brand. Because of convenience in

carrying, tetra pack was most preferred one.

Ali (1992) studied the brand loyalty and switching pattern of processed

fruit and vegetable products in Bangalore city by using Markov Chain analysis.

The result of study revealed that Kissan brand of jam and Maggi brand of

ketchup had a maximum brand loyalty among consumers and less amount of

brand switching occurred for these brands.

Sabeson (1992), in his study stated that high quality, price and taste of the

product were the major criteria based on which the customers selected a brand of

processed fruits and vegetable products.

Hans et al. (1996) revealed that, the brand switching of consumer was

based on variety seeking behaviour, motivations, curiosity and price motive.

Page 35: Summer project report

Veena (1996) studied brand switching and brand loyalty of processed

fruit and vegetable products in Karnataka state by using Markov Chain analysis.

The result of the study revealed that Maggi, Sil and Kissan were having market

retention of 74.20, 55.78 and 48.74 per cent, respectively for jam products. The

equilibrium shares determined in order to predict future market position among

the different brand showed that in long run shares of Kissan, Rex. Other brands

were likely to decline, mainly on account of increased market shares of Gala, Sil

and Maggi.

Padmanabhan (1999) conducted study on brand loyalty, which revealed

that the price of the preferred brand, efficiency of the preferred brand and

influence of advertisement significantly influenced the brand loyalty. Only when

the price of a particular brand is comparatively low, the farmers would naturally

prefer to low priced brand. Otherwise farmers would naturally continue to

purchase the same brand Low and Lamb Jr. (2000) came out with an interesting

conclusion that well known brands tend to exhibit multi-dimensional brand

associations, consistent with the idea that consumers have more developed

memory structures for more familiar brands. Consumers might be willing to

expend more energy in processing information regarding familiar brands

compared to unfamiliar brands.

Kamenidou (2002) presented the findings on the purchasing and

consumption behaviour of Greek households towards three processed peach

products: canned peaches in syrup, juice and peach jam. The results revealed that

47.50 per cent of the households purchased canned peaches in syrup, 67.40 per

cent purchased peach juice and 42.60 per cent purchased peach jam. Reasons for

such purchase were satisfactory taste and qualities and household’s perception

that they were healthy products. The results also indicated that the consumption

quantities were considered low, while households usually purchased the same

brand name, meaning that there was a tendency for brand loyalty.

Page 36: Summer project report

Sampathkumar (2003) studied about brand preference in soft drinks in

Telangana region of Andra Pradesh. He found that in rural market about 37.50

per cent of consumers preferred Thumbs-up (urban 30%), followed by Coca cola

(28.50%) (urban 37.50%), Pepsi 12.50 per cent (urban 9.00%), Limca (4.00%)

(urban 8.50%). Most of the urban consumers (67.00%) purchased soft drinks in

nearest Kirani stores (rural 73.00%), followed by super bazaar (27.00%) (rural

26.00%) and others (6.00%) (rural 1.00%). The method of physical distribution

played very vital role in company’s success and failure in the market.

Transportation was among the major functions of physical distribution.

Transport adds time and place utility for the product.

Vincent (2006) studied brand consciousness among children. The study

showed that children start to recognize product brands at an early age, which

influence family buying behaviuor. It was helpful for parents in making purchase

decision of durable goods for the family

Page 37: Summer project report

.

FACTORS INFLUENCING BRAND PREFERENCE

Singh and Singh (1981) found that consumers had single or multi-brand

loyalty based on the nature of product, like necessities or luxuries. Brand choice

and store loyalty were found to affect the brand loyalty of the consumer. The

factors that influence and strengthen loyalty to brand were quality of product,

habit of use and ready and regular availability.

Sabeson (1992) in his study stated that, high quality, price and taste of the

products were the major criteria based on which the consumers selected a brand

of processed fruits and vegetable products.

Ashalatha (1998) studied the factors influencing the performance of

BAMUL milk for a sample of 100 respondents. The study revealed that the

factors such as door delivery, clean packing, quality, hygienic preparation, time

saving and reliability, good value for money, freshness and desired flavour were

important in the order in influencing the decision of buyers for BAMUL milk.

The study undertaken by Sheeja (1998) in Coimbatore district considered

the quality aspects like aroma, taste, freshness and purity as the major factors

deciding the preference for a particular brand of processed spices.

Page 38: Summer project report

Raj Reddy and Pruthviraju (1999) studied about buying motives of rural

consumers about seeds and different sources of information about brands with

regard to seeds. It was found that factors influencing brand loyalty of farmers

were dealer’s suggestions, quality product and co-farmers. The problems faced

by farmers were supply of seed or poor quality seed, higher price, adulteration

and irregular supply of seeds.

Gaur and Waheed (2002) conducted a study on buying behaviour for

branded fine rice in Chennai and Coimbatore city. The study indicated that

retailers were ranked as the prime source of information and the family members

as the next important source of information about the branded fine rice. Rice

mandy formed the major source of purchase for Chennai (73.00%) and

Coimbatore (70.00%) households. Quality and image of the brand were ranked

as first and second factors influencing brand preference in both Chennai and

Coimbatore cities.

Sanjaya et al. (2002) reported that, the decision for purchasing branded fine rice

was mostly made by the wives of the family. The retailers were ranked as the

prime sources of information about branded fine rice. The monthly purchase was

the most preferred frequency of purchase, which might be due to the fact that

most of the respondents were of monthly salaried class and they would have

planned their purchase accordingly along with other provision items. The quality

and the image of the brand were ranked as the major factors for brand preference

in the purchase of branded fine rice.

In a study conducted by Sarwade (2002) it has been observed that the

price was the factor, which influenced the purchasing decision as against the

quality of the product. It is very interesting to find out that the company image

and brand image were not totally considered by the households.

Nandagopal and Chinnaiyan (2003) conducted a study on brand

Page 39: Summer project report

preference of soft drinks in rural Tamil Nadu, using Garrets ranking technique,

to rank factors influencing the soft drinks preferred by rural consumer. They

found that, the product quality was ranked as first, followed by retail price. Good

quality and availability were the main factors, which influenced the rural

consumers of a particular brand of a product.

Ramasamy et al. (2005) studied consumer behaviour towards instant food

products in Madurai, the second largest city in Tamil Nadu and observed that

consumers do build opinion about a brand on the basis of which various product

features play an important role in decision making process. A large number of

respondents (78.00%) laid emphasis on quality and 76.00 per cent on price

which was an important factor, while 64.00 per cent of the respondents attached

importance to the image of the manufacturer and 50.00 per cent considered

packaging as an important factor and an equal percentage (50.00%) felt longer

shelf life influenced them.

Banumathy and Hemameena (2006), while studying consumer brand preference

with respect to soft drinks, found that after globalization most of the consumers

like the Vincent (2006) elicited that quality was an important factor that draws

consumer towards branded products. Branded products were accepted as good

quality products. People do not mind paying extra for branded products, as they

get value for money. Media is a key constituent in promoting and influencing

brand. A child’s insistence affects family’s buying behaviour. Children are

highly aware and conscious of branded items. Although unbranded products

sometimes give same satisfaction as branded products, customers would still

prefer to purchase a branded product international brands such as Pepsi and

Coco-cola. Consumers preferred a certain brand or a particular drink mainly

because of its taste and refreshing ability.

Page 40: Summer project report

.

2.5 ALTERNATIVE PURCHASE PLANS

Rajarashmi and Sudarsana (2004) revealed that, almost all sample

respondents preferred branded products and if their favorite brand is not

available in the retail shop, they will go for another store and purchase their

favorite brand. If it is not available in the market, the respondents were ready to

postpone their purchase decision.

Anandan et al. (2007) studied that, majority of the respondents (54.00%)

will buy another brand if preferred brand is not available, 18.00 per cent of the

respondents will go to the nearby town for buying the preferred brand. Fifteen

per cent of the respondents will postpone their purchase decision. It was revealed

from the study that customers cannot postpone the decision of buying the

detergents, as it was one of the essential commodities.

Page 41: Summer project report

3. METHODOLOGY

The present study was undertaken to know the awareness of consumers

towards branded ready-to-eat food products, purchase behaviour of ready-to-eat

food products, brand preference of the consumers, factors influencing brand

preference and to study the alternative purchase plans of the consumers. This

chapter covers the following aspects:

3.1 Description of study area

3.2 Sampling design and data collection

3.3 Analytical tools employed in the study

3.1 DESCRIPTION OF STUDY AREA

Dharwad and Hubli are the fastest growing cities in the state next to

Bangalore. The population is heterogeneous with diverse cultural, religious and

economic background. This urban conglomeration covers an area of 190 square

kilometers with a population of 7.86 lakhs (2001 census). Because of the

existence of various linguistic, religious and ethnic groups, it has been a very

good marketing centre for launching new products. Since, the twin cities provide

an ideal setting to study the behaviour of consumers towards ready-to-eat food

products, the present study was undertaken.

3.2 SAMPLING DESIGN AND DATA COLLECTION

3.2.1 Selection of ready- to- eat food products

Preliminary discussions were held with the local consumers and the

marketers about the consumption of ready- to- eat food products as well as about

Page 42: Summer project report

the brands available and preferred in the study area to gather information on the

products to be selected for the study. Based on the discussions, the most

commonly available and used products in the study area were selected. The

particular products were selected in such a way as to represent one product from

each food group like cereals, fruits, vegetables and milk and milk products.

The products selected for the study were as follows:

• Cereal based – Biscuits

• Fruit based – Fruit juices

• Vegetable based – Chips

• Milk & milk products based – Ice creams

3.2.2 Sample selection

The total samples selected for the study was 200 respondents. In the first

phase Hubli and Dharwad twin cities were selected purposively. In the next

phase, 100 sample consumers each from Hubli and Dharwad were selected

randomly irrespective of age, education and income level.

Classification of the respondents

The respondents were classified into different categories based on age.

Age

Age Group 1 (AG1) – Below 20 years

Page 43: Summer project report

Age Group 2 (AG2) – Between 21 – 40 years

Age Group 3 (AG3) – Between 41 – 60 years

Age Group 4 (AG4) – Above 60 years

Income

The respondents were post classified into three income groups based on

their income by using the formula:

Page 44: Summer project report

Mean ±0.425 x S.D.

Low income – Below Rs. 8615.70 per month.

Middle income – Between Rs. 8615.70 to Rs. 13,638.30 per month.

High income – Above Rs. 13,638.30 per month.

Collection of data

To study the objectives, required data were collected from primary as

well as secondary sources.

Primary data

The data required for the study were collected from the respondents by

personal interview method with the help of pre-structured questionnaire. The

respondents were interviewed at retail outlets, departmental stores, bakeries and

even at the homes. The questionnaire consisted of:

Part I : General information like name, age, education, sex, occupation, food

habit,

family income and family type. Monthly expenditure on food items in general

and ready- to- eat food products in particular.

Part II : Specific information included the information regarding purchase

behaviour,

factors influencing the purchase of ready- to- eat food products,

brand

awareness, sources of information for brand awareness, frequency

Page 45: Summer project report

of

purchase, nature of purchase decision, place of purchase,

influencers of

purchase decision, brand preference, factors influencing to prefer

particular

brand and alternative purchase plans of the consumers.

Secondary data

The secondary data on location, demography and regarding population of

the study area were collected from District Statistical Office and published

sources.

3.3 ANALYTICAL TOOLS USED

The data collected for the study was processed and analyzed by using

suitable statistical techniques. Frequency, percentage, mean, standard deviation

and Garret’s ranking techniques were used to present the collected data. A

detailed description of the analytical tools employed in the study is presented

below.

3.3.1 Tabular Analysis

Percentage analysis was used to study the socio economic characteristics

like age, education, occupation, family size, family type, consumer awareness

towards branded ready-to- eat food products, sources of information for brand

awareness, frequency of purchase, nature of purchase decision, place of

purchase, influencers of purchase decision and alternative purchase plans of the

consumers.

3.3.2 Garrett’s Ranking Technique

Page 46: Summer project report

Garrett’s ranking technique was adopted for the studying brand

preferences and factors influencing for preference of a particular brand.

In the first stage: ranking given by 200 respondents for each factor was

analyzed. Eg: Rank given by the respondents

Respondent Factors

No.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 - 5 1 2 9 10 - - 4 3 - 8 - 7 6

2 3 2 7 - 10 - 6 4 1 - 8 - 9 5 -

3 3 6 - 8 - 10 - 2 1 - 7 9 - 5 4

Page 47: Summer project report

In the second stage: Thus assigned ranks by the individual respondents were

counted into percent position value by using the formula.

Per cent position = 100 (Rij – 0.5)/Nj.

Where, Rij stands for rank given for the ith factor by the jth

individual. Nj stands for number of factors ranked by jth

individual.

The per cent position value for the same assigned ranks by the respondents as follows.

Respondent Factors

No.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 - 45 5 15 85 95 - - 35 25 - 75 - 65 55

2 25 15 65 - 95 - 55 35 5 - 75 - 85 45 -

3 25 55 - 75 - 95 - 15 5 - 65 85 - 45 35

Stage III – For each per cent position scores were obtained with reference to Garrett’s tables

and each per cent position value was converted into scores by reference to Garrett’s Table.

Eg: Garrett’s table scores for the per cent position values as follows

Respondent Factors

No.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 - 52 82 70 30 18 - - 57 63 - 37 - 42 47

Page 48: Summer project report

2 63 70 42 - 18 - 47 57 82 - 37 - 30 52 -

3 63 47 - 37 - 18 - 70 82 - 42 30 - 52 57

In the fourth stage – Summation of these scores for each factor was worked out for the

number of respondents who ranked for each factor.

Respondent Factors

No.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 - 52 82 70 30 18 - - 57 63 - 37 - 42 47

2 63 70 42 - 18 - 47 57 82 - 37 - 30 52 -

3 63 47 - 37 - 18 - 70 82 - 42 30 - 52 57

∑ 126 169 124 107 48 36 47 127 221 63 79 67 30 196 104

Page 49: Summer project report

In the fifth stage – Mean scores were calculated by dividing the total score by the number of

respondents.

Respondent Factors

No.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 - 52 82 70 30 18 - - 57 63 - 37 - 42 47

2 63 70 42 - 18 - 47 57 82 - 37 - 30 52 -

3 63 47 - 37 - 18 - 70 82 - 42 30 - 52 57

∑ 126 169 124 107 48 36 47 127 221 63 79 67 30 196 104

Mean 63 56.33 62 53.50 24 18 47 63.50 73.66 63 39 33.50 30 65.33 52

In the last stage – Overall ranking was obtained by assigning ranks 1, 2, 3 …. etc. in the

descending order of the mean score.

Respondent Factors

No.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 - 52 82 70 30 18 - - 57 63 - 37 - 42 47

2 63 70 42 - 18 - 47 57 82 - 37 - 30 52 -

3 63 47 - 37 - 18 - 70 82 - 42 30 - 52 57

Mean 63 56.33 62 53.50 24 18 47 63.50 73.66 63 39 33.50 30 65.33 52

Ranks IV VI V VII XIII XIV IX III I IV X XI XII II VIII

Page 50: Summer project report

4. RESULTS

The results of the study are presented under the following headings.

4.1 Awareness of consumers towards branded ready-to-eat food products.

4.2 Purchase behaviour of consumers towards ready-to-eat food products.

4.3 Brand preference of the consumers.

4.4 Factors influencing brand preference.

4.5 Alternative purchase plans of the consumers.

4.1 AWARENESS OF CONSUMERS TOWARDS BRANDED

READY-TO-EAT FOOD PRODUCTS

To know the awareness, it is necessary to study socio-economic

characteristics of the consumers, as these are the important variables, which

decide the consumption pattern of food products in the family. Generally it is

believed that, as the income, age and education of the consumers increase, the

expenditure on consumption of food products also increases. Hence, the

consumers’ socio-economic characteristics were studied and the results are

presented hereunder.

4.1.1 General information about the selected samples

Table 4.1 presents the general information of selected samples in Hubli

and Dharwad cities. It could be seen from the table that the maximum number of

respondents i.e., 55.00 per cent of them belonged to the age group 2 (21-40

years). Thirty two per cent of them were below 20 years i.e., they belonged to the

Page 51: Summer project report

AG1 and 9 per cent of them were between the age of 41 to 60 years (AG3). Very

few per cent of the respondents were above 60 years (4.00%) and they belonged

to the age group 4.

Among the total respondents 61.00 per cent of them were female and

remaining 39.00 per cent of them were male.

Maximum number of the selected respondents were degree holders

(44.00%), 30.00 per cent of them were of PUC level, 14.00 per cent of the

respondents were post graduates and 10.00 per cent of them were of high school

level. Very less percentage of the respondents were of primary school level

(2.00%). It was also observed from the table that none of the respondents were

illiterates.

Most of the respondents belonged to nuclear families (89.00%) and

remaining 11.00 per cent of them were living in joint families.

Maximum number of respondents (44.00%) belonged to the medium

family size of 5-7 members. This was followed by family size of less than 5

members (41.00%) i.e., small family and 15.00 per cent of them belonged to

large family (more than 7 members).

Among the selected samples 73.00 per cent of them were vegetarians and

remaining 27.00 per cent were non-vegetarians.

Most of the respondents (40.00%) belonged to low income group (<Rs.

8615.70/month), 34.00 per cent of them belonged to middle

income group (Rs. 8715.70 –

13,638.30/month) and remaining 26.00 per cent of them were belonged to high

income group (> Rs. 13638.30/month).

Page 52: Summer project report

Under occupation classification, 68.00 per cent of them were students,

12.00 per cent of them were government employees, 9.00 per cent were

housewives, 8.00 per cent of them were working under private sectors and very

few of the respondents were engaged in business activities (3.00%).

Page 53: Summer project report

Table 4.1. General information of selected samples in Hubli and Dharwad

(N = 200)

General information CategoriesNo. of

Percentagerespondents

Below 20 years (AG1) 64 32.00

Age21-40 years (AG2) 110 55.00

41-60 years (AG3) 18 9.00

>60 years (AG4) 8 4.00

Male 78 39.00

Sex Female 122 61.00

Illiterate - -

Primary school 4 2.00

EducationHigh school 20 10.00

PUC 60 30.00

Degree 88 44.00

PG 28 14.00

Joint 22 11.00

Family type Nuclear 178 89.00

Small (below 5) 82 41.00

Family size Medium ( 5-7) 88 44.00

Large (more than 7) 30 15.00

Food habitVegetarian 146 73.00

Non - vegetarian 54 27.00

Low (< Rs. 8615.70) 80 40.00

Monthly income (Rs) Middle (Rs. 8615.70 – 13638.30) 68 34.00

High (> Rs. 13638.30) 52 26.00

Student 136 68.00

Page 54: Summer project report

House wife 18 9.00

Occupation Business 6 3.00

Government employee 24 12.00

Private 16 8.00

Note : AG1 – Age group 1(Below 20 years)

AG2 – Age group 2 (21-40 years)

AG3 – Age group 3 (41-60 years)

AG4 – Age group 4 (>60 years)

Page 55: Summer project report

4.1.2 Brand awareness of consumers about biscuits among different age

groups

Table 4.2 presents the brand awareness of consumers about biscuits

among different age groups which is also represented in Fig. 1. Majority of the

respondents (99.00%) were aware of Parle-G brand followed by Marie gold

biscuits (97.00%), 96.00 per cent each were conscious of Tiger biscuits, Good

day and Krack jack, 81.00 per cent of the respondents knew Glucose brand.

Britannia 50-50 and Hide and seek brands were very popular among 80.00 per

cent each of the respondents, 78.00 per cent, 70.00 per cent, 64.00 per cent,

62.00 per cent and 56.00 per cent of the respondents knew Parle Monaco,

Britannia little hearts, Sunfeast glucose, Sunfeast snacky and Britannia Time

pass brands respectively. Only a small percentage of the respondents were

familiar with Chocolate chip cookies (43.00%).

Among age group one (AG1) cent per cent each of the respondents were

aware of Parle-G, Good day and Krack jack brands, while brands of Tiger

biscuits and Marie gold biscuits were popular among 96.87 per cent each of the

respondents. Glucose biscuits, Hide and seek, Parle Monaco and Sunfeast

glucose brands were known to 84.37 per cent, 78.12 per cent, 75.00 per cent and

71.87 per cent of respondents, respectively. Britannia 50-50 and Sunfeast snacky

brands were familiar among 65.62 per cent each of the respondents and Britannia

little hearts was known to 62.50 per cent of the respondents. Only 53.12 per cent

each of them were aware of Chocolate chip cookies and Britannia Time pass

brands. In the case of AG2, 98.18 per cent each were aware of Parle-G and Good

day brands, followed by 96.36 per cent each aware of Tiger biscuits, Marie gold

and Krack jack brands, only 40.00 per cent of them know about Chocolate chip

cookies. Marie gold biscuits were popular among cent per cent each of the

respondents of AG3 and AG4. Chocolate chip cookies was familiar among 44.44

per cent of AG3 respondents only. But none of the respondents of AG4 were

aware of Chocolate chip cookies brand, Sunfeast snacky, Sunfeast glucose,

Britannia Time pass and also Britannia little hearts brands.

Page 56: Summer project report

4.1.3 Brand awareness of consumers about chips among different age

groups

Brand awareness of consumers about chips among different age groups is

depicted in Table 4.3 and Fig.2. Most of the respondents were aware of Lays

(96.00%), Uncle chips (83.00%), Bingo (67.00%), Haldiram chips (63.00%),

Lehar (50.00%), Lip chips (35.00%) brands and less percentage of the

respondents knew Diamond chips (32.00%) brand. Lays brand was familiar

among 100.00 per cent, 96.36 per cent, 88.88 per cent and 75.00 per cent of the

consumers of AG1, AG2, AG3 and AG4 accordingly.

In case of AG1, Uncle chips, Lip chips, Diamond chips and Lehar chips

were well known to 93.75, 43.75, 34.37 and 50.00 per cent of the respondents

and about 59.37 per cent each aware of Bingo and Haldiram brands.

More than half of the respondents of AG2 and AG3 were conscious of

Lehar brand. Uncle chips and Bingo brands were familiar among more than

70.00 per cent of the AG2 and AG3 respondents. In addition to these brands,

Haldiram chips was known to 70.90 per cent of AG2 and 55.55 per cent of AG3

respondents. About, 36.36 per cent each were aware of Lip chips and Diamond

chips among AG2. In case of AG3 Lip chips and Diamond chips were well

known to 11.11 per cent each of the respondents. Fifty per cent of the

respondents were aware of Uncle chips and 25.00 per cent of the respondents

were conscious of Bingo brand in case of AG4 respondents. It could also be seen

from the table that, none of the respondents of this age group were familiar with

Haldiram, Lip, Diamond and Lehar brands of chips.

4.1.4 Brand awareness of consumers about fruit juice among different age

groups

Table 4.4 and Fig. 3 reveals the brand awareness of consumers about fruit

Page 57: Summer project report

juice among different age groups. Frooti brand was very popular i.e., 96.00 per

cent of respondents were aware, followed by Maaza brand (93.00%), Slice

(87.00%), Appy (76.00%), Real fresh (62.00%), Pulpy orange (58.00%) and

Tropicana twister (44.00%) at the overall level. Cent per cent of the respondents

of AG1 and AG4 were conscious of Frooti brand. About 62.50, 78.12, 46.87 and

50.00 per cent of the respondents were aware of Real fresh, Appy, Tropicana

twister and Pulpy orange brands among AG1 respondents. Maaza and Slice

Page 58: Summer project report

brands were well known to 96.87 per cent each of the respondents. Among AG2,

majority of the respondents were familiar with Frooti and Maaza brands (94.54%

each). Slice, Appy, Pulpy orange and Real fresh brands were familiar among

85.45, 83.63, 69.09 and 63.63 per cent of the respondents. About 49.09 per cent

of the respondents were aware of Tropicana twister brand. All the respondents of

AG3 were conscious of Maaza brand. Frooti, Slice and Real fresh brands were

familiar among more than 70.00 per cent of respondents. Less percentage of the

respondents were aware of Tropicana twister brand (22.22%). Among AG4 only

25.00 per cent each of the respondents knew Maaza and Slice brands. It was also

observed from the table that Real fresh, Appy, Tropicana twister and Pulpy

orange brands were not known to any of the respondents of AG4.

4.1.5 Brand awareness of consumers about ice creams among different age

groups

Brand awareness of consumers about ice creams among different age

groups is presented in Table 4.5 and Fig. 4. It could be seen from the table that

majority of the respondents were aware of Amul brand (99.00%), followed by

Arun, MTR and Nandini (66.00% each), 62.00 per cent were aware of Kwality

walls, Vadilal (56.00%), Dairy day (49.00%), Hangya (39.00%) and 25.00 per

cent of them were conscious of Dinshaws brand. All the respondents of AG1,

AG2 and AG4 were aware of Amul brand. About 68.75 per cent each were

aware of Arun and Nandini brands, MTR and Vadilal brands were known to

56.25 per cent each of the respondents, 50.00 per cent each of them were aware

of Kwality walls and Dairy day brands. Hangya and Dinshaws brands were

known to 40.62 per cent and 25.00 per cent respectively. In case of AG2, 72.72

per cent each were conscious of MTR and Kwality walls brands. More than half

of the respondents were familiar with Arun, Nandini and Vadilal barnds. Only

21.81 per cent of the respondents knew Dinshaws brand. Among AG3, majority

of the respondents were aware of Amul and MTR brands (88.88% each)

followed by Nandini (77.77%), Arun, Kwality walls, Vadilal, Dairy day and

Page 59: Summer project report

Dinshaws brands were familiar among more than half of the respondents. Only

44.44 per cent of the respondents of AG3 were conscious of Hangya brand. In

case of AG4, Arun, Vadilal and Dairy day brands were known to 25.00 per cent

each of respondents and none of them were aware of MTR, Nandini, Kwality

walls, Hangya and Dinshaws brands.

4.1.6 Influence of media to create awareness about the brands

Influence of media to create awareness about the brands in the study area

were analysed and depicted in Table 4.6. It was observed from the table that, in

case of biscuits television was the major source for getting information about the

brands (92.00%). This was followed by newspapers (66.00%), friends/relatives

(51.00%), shopkeeper or retailer (48.00%), window display (43.00%), magazines

(39.00%) and radio (20.00%).

In case of other products i.e., chips, fruit juice and ice creams, majority of

the respondents were influenced by television (93.00%, 86.00% and 81.00% of

the respondents for chips, fruit juice and ice creams respectively) followed by

friends/relatives (62.00%, 59.00% and 64.00% of the respondents for chips, fruit

juice and ice creams respectively) and newspapers (57.00%, 56.00% and 62.00%

of the respondents for chips, fruit juice and ice creams respectively). Radio was

the least preferred media for brand awareness of these products (10.00%, 13.00%

and 12.00% of the respondents for chips, fruit juice and ice creams respectively).

Overall, television was preferred as the major source of information for brand

awareness (26.13%) followed by newspapers and friends/relatives (17.89% and

17.52% respectively). About 12.62 per cent of the respondents were influenced

by shopkeeper / retailer, 11.06 per cent by magazines, 10.69 per cent by window

display and very few of the respondents i.e., 4.08 per cent were influenced by

radio (Fig. 5).

Page 60: Summer project report

Table 4.2. Brand awareness of consumers about biscuits among different age groups

Age group

Brands

AG1 AG2 AG3 AG4 Overall

(n=64) (n = 110) (n = 18) (n = 8) (N=200)

Parle – G 64 (100.00) 108 (98.18) 18 (100.00) 8 (100.00) 198 (99.00)

Tiger biscuits 62 (96.87) 106 (96.36) 16 (88.88) 8 (100.00) 192 (96.00)

Marie gold 62 (96.87) 106 (96.36) 18 (100.00) 8 (100.00) 194 (97.00)

Britannia 50-50 42 (65.62) 100 (90.90) 14 (77.77) 4 (50.00) 160 (80.00)

Sunfeast snacky 42 (65.62) 72 (65.45) 10 (55.55) - 124 (62.00)

Sunfeast glucose 46 (71.87) 72 (65.45) 10 (55.55) - 128 (64.00)

Good day 64 (100.00) 108 (98.18) 16 (88.88) 4 (50.00) 192 (96.00)

Krack jack 64 (100.00) 106 (96.36) 16 (88.88) 6 (75.00) 192 (96.00)

Hide & seek 50 (78.12) 94 (85.45) 14 (77.77) 2 (25.00) 160 (80.00)

Glucose 54 (84.37) 84 (76.36) 16 (88.88) 8 (100.00) 162 (81.00)

Chocolate chip cookies 34 (53.12) 44 (40.00) 8 (44.44) - 86 (43.00)

Britannia Time pass 34 (53.12) 66 (60.00) 12 (66.66) - 112 (56.00)

Parle Monaco 48(75.00) 92 (83.63) 14 (77.77) 2(25.00) 156 (78.00)

Britannia little hearts 40(62.50) 88 (80.00) 12 (66.66) - 140 (70.00)

Page 61: Summer project report

Note : Figures in parentheses indicate the percentage to the total number of respondents

in the category.

Page 62: Summer project report

Pe

rce

nta

ges

99

100 96 97 96 96

9080 80 81

78

8070

70 62 64

60 56

50 43

40

30

20

10

0

Gs

it

– u

le c

s

r i

a b

Pr

e

ig

T

Page 63: Summer project report

ld 0

o -5

g 0

ie 5

r

ia

a

t

n s

M n a

ta fe

i

nr

B

u

S

y k k e

a c e s

d ja e o

d k s c o

o c

&

lu o

o a

G

c

G

r e p

K id i

H

h

c

te

la a

o it

r i

c

Br

o B

h

Brands C

Fig. 1. Brand awareness about biscuits among consumers (overall)

Fig. 1. Brand awareness about biscuits among consumers (overall)

Page 64: Summer project report

Table 4.3. Brand awareness of consumers about chips among different age groups

Age group

Brands AG1 AG2 AG3 AG4 Overall

(n=64) (n = 110) (n = 18) (n = 8) (N=200)

Uncle chips60 88 14 4 166

(93.75) (80.00) (77.77) (50.00) (83.00)

Bingo38 80 14 2 134

(59.37) (72.72) (77.77) (25.00) (67.00)

Lays64 106 16 6 192

(100.00) (96.36) (88.88) (75.00) (96.00)

Haldiram chips38 78 10

-126

(59.37) (70.90) (55.55) (63.00)

Lip chips28 40 2

-70

(43.75) (36.36) (11.11) (35.00)

Dimond chips22 40 2

-64

(34.37) (36.36) (11.11) (32.00)

Lehar32 58 10

-100

(50.00) (52.72) (55.55) (50.00)

Note : Figures in parentheses indicate the percentage to the total number of respondents in

the category.

Page 65: Summer project report

Per

enta

ges

100

90

80

70

60

50

40

30

20

10

0

Page 66: Summer project report

96

83

67

63

50Uncle chips Bingo Lays Haldiram chips Lip chips Diamond chips Lehar

Brands

Fig. 2. Brand awareness about chips among consumers (overall)

Fig. 2. Brand awareness about chips among consumers (overall)

Page 67: Summer project report

Table 4.4. Brand awareness of consumers about fruit juice among different age groups

Age group

Brands AG1 AG2 AG3 AG4 Overall

(n=64) (n = 110) (n = 18) (n = 8) (N=200)

Real fresh40 70 14

-124

(62.50) (63.63) (77.77) (62.00)

Frooti64 104 16 8 192

(100.00) (94.54) (88.88) (100.00) (96.00)

Appy50 92 10

-152

(78.12) (83.63) (55.55) (76.00)

Maaza62 104 18 2 186

(96.87) (94.54) (100.00) (25.00) (93.00)

Tropicana twister30 54 4

-88

(46.87) (49.09) (22.22) (44.00)

Pulpy orange32 76 8

-116

(50.00) (69.09) (44.44) (58.00)

Slice 62 94 16 2 174

Page 68: Summer project report

(96.87) (85.45) (88.88) (25.00) (87.00)

Note : Figures in parentheses indicate the percentage to the total number of respondents

in the category.

Page 69: Summer project report

Per

cen

tag

es

9693

100

87

90

76

80

7062

58

60

44

50

40

30

20

10

0

Real fresh Frooti Appy Maaza Tropicana Pulpy orange Slice

twister

Page 70: Summer project report

Brands Fig. 3. Brand awareness about fruit juice among consumers (overall)

Fig. 3. Brand awareness about fruit juice among consumers (overall)

Page 71: Summer project report

Table 4.5. Brand awareness of consumers about ice creams among different age

groups

Age group

Brands AG1 AG2 AG3 AG4 Overall

(n=64) (n = 110) (n = 18) (n = 8) (N=200)

Amul64 110 16 8 198

(100.00) (100.00) (88.88) (100.00) (99.00)

Arun44 76 10 2 132

(68.75) (69.09) (55.55) (25.00) (66.00)

MTR36 80 16

-132

(56.25) (72.72) (88.88) (66.00)

Nandini44 74 14

-132

(68.75) (67.27) (77.77) (66.00)

Kwality walls32 80 12

-124

(50.00) (72.72) (66.66) (62.00)

Hangya26 44 8

-78

(40.62) (40.00) (44.44) (39.00)

Vadilal36 62 12 2 112

(56.25) (56.36) (66.66) (25.00) (56.00)

Dairy day32 54 10 2 98

Page 72: Summer project report

(50.00) (49.09) (55.55) (25.00) (49.00)

Dinshaws16 24 10

-50

(25.00) (21.81) (55.55) (25.00)

Note : Figures in parentheses indicate the percentage to the total number of respondents

in the category.

Page 73: Summer project report

99

100

90

80

66 66 66

70 62

56

6050 4

9

Per

cen

tag

es

39

40

25

30

20

Page 74: Summer project report

1

0

0

Amul

Arun MTR Nandini Kwality walls Hangya

Vadilal Dairy day Dinshaws

Brands

Fig. 4. Brand awareness about ice creams among

consumers (overall)

Fig. 4. Brand awareness about ice creams among consumers (overall)

Page 75: Summer project report

Table 4.6. Influence of media to create awareness about the brands

(N = 200)

Products

Source Overall

Biscuits Chips Fruit juice Ice creams

Television 184 (92.00) 186(93.00) 172(86.00) 162(81.00) 704 (26.13)

Radio 40 (20.00) 20(10.00) 26(13.00) 24(12.00) 110 (4.08)

Newspapers 132 (66.00) 114(57.00) 112(56.00) 124(62.00) 482 (17.89)

Magazines 78 (39.00) 64(32.00) 76(38.00) 80(40.00) 298 (11.06)

Friends/relatives 102(51.00) 124(62.00) 118(59.00) 128(64.00) 472 (17.52)

Shopkeeper/retailer 96(48.00) 82(41.00) 74(37.00) 88(44.00) 340 (12.62)

Window display 86(43.00) 68(34.00) 68(34.00) 66(33.00) 288 (10.69)

Total = 2694 (100.00)

Page 76: Summer project report

Note : Figures in the parentheses indicate percentage to the total sample size.

Page 77: Summer project report

4.2 PURCHASE BEHAVIOUR OF CONSUMERS

4.2.1 Buyers and non-buyers of ready-to-eat food products

The data on buyers and non buyers of ready-to-eat food products in the

study area is presented in Table 4.7. The table revealed that biscuits were

consumed by all the respondents in the study area. Hundred per cent each of the

respondents across all the age groups consumed biscuits. About 92.00 per cent of

the respondents purchased chips for consumption and remaining 8.00 per cent of

them were not buying. In case of AG1, chips were consumed by all the

respondents. About 98.18 per cent of the respondents of AG2 bought chips for

consumption. Among AG3, 66.66 per cent of them were buying chips for

consumption and remaining 33.33 per cent of them were non buyers. Fruit juice

was bought by 93.00 per cent of the respondents and remaining 7.00 per cent of

them were not buying. Hundred per cent, 96.36 per cent and 88.88 per cent of the

respondents of AG1, AG2 and AG3 respectively consumed fruit juice. Fruit juice

was not consumed by 3.63 per cent and 11.11 per cent of the respondents of AG2

and AG3 accordingly. Ice creams were consumed by 94.00 per cent of the

respondents and remaining 6.00 per cent of them were not consuming.

About 96.87, 98.18 and cent per cent of the respondents of AG1, AG2

and AG3 consumed ice creams. Only a meagre per cent of the respondents of

AG1 (3.12%) and AG2 (1.81%) did not consume ice creams. All the respondents

of AG4 were non-buyers of chips, fruit juice and ice creams.

4.2.2 Reasons for purchasing ready-to-eat food products

An attempt was made to elicit the factors considered by the respondents

for purchase of ready-to-eat food products in Hubli and Dharwad cities. It was

noticed from the Table 4.8 that the major factors considered while purchasing

biscuits were convenience to use as snacks (65.00%), liking of the family

members (60.00%) and ready availability (53.00%). The other reasons for the

Page 78: Summer project report

purchase of biscuits were taste, satisfaction, easy availability in the shops, save

time of preparation and influence of friends/relatives (46.00%, 43.00%, 39.00%,

23.00% and 15.00% respectively). Taste was the main reason for purchasing

chips (80.43%). The other factors considered while purchasing chips were

convenience to use as snacks (64.13%), satisfaction (52.17%), ready availability

(46.73%), save time of preparation (39.13%), influence of friends/relatives

(36.95%), liking of the family members (31.52%) and easy availability in the

shops (26.08%). Only a meagre percentage of the respondents said other reasons

(1.08%) like habit of eating and time pass. Fruit juice was consumed mainly

because of taste (59.13%) followed by ready availability (55.91%), save time of

preparation (49.46%), satisfaction (47.31%), influence of friends or relatives

(44.08%), liking of the family members (36.55%), convenience to use (26.88%)

and easy availability in the shops (15.05%). Only 9.67 per cent of the

respondents said they consume fruit juice because of its nutritive value and good

for health. In case of ice creams, 61.70 per cent of the respondents consume

because of its taste, 55.31, 44.68, 39.36, 34.04, 27.65, 25.53 and 13.82 per cent

of the respondents opined that satisfaction, influence of friends/relatives, liking

by the family members, ready availability, save time of preparation, easy

availability in the shops and convenience to use respectively were the factors

responsible for purchasing ice creams.

4.2.3 Reasons for not purchasing ready-to-eat food products

Reasons for not purchasing ready-to-eat food products, as opined by the

respondents are presented in Table 4.9. It was revealed from the table that, there

was no reason for the respondents for not purchasing biscuits. That is the

researcher could not find anybody who disliked the product. Cent per cent of the

respondents did not purchase chips since they were health conscious. About

62.50 per cent of the respondents did not purchase due to low quality of the

product. The other reasons for not consuming chips were dislike towards the

product and high price (50.00% each). In the case of fruit juice majority of the

respondents (85.71%) were not purchasing this product because they preferred

Page 79: Summer project report

home made products. The other reasons for not purchasing fruit juice were high

price (71.42%), dislike towards the product (42.85%) and 28.57 per cent of them

did not purchase because of its low quality. In case of ice creams cent per cent of

the respondents did not purchase because they disliked the product, 66.66 per

cent of them were not using this product because they were health conscious and

33.33 per cent of the respondents quoted other reason like allergy to cold.

Page 80: Summer project report

High price and low quality were the reasons for not consuming ice creams by

16.66 per cent each of the respondents.

4.2.4 Monthly expenditure of households on food items

The monthly average expenditure of the households is presented in Table

4.10 and Fig.6. It could be seen from the table that the households monthly

expenditure increased with increase in monthly income. The average monthly

expenditure on ready-to-eat food products was found to be highest in case of

high income group (Rs.423.07), followed by middle income group (Rs. 298.52)

and low income group (Rs.224.00). On an average Hubli and Dharwad

consumers spend Rs. 301.10 per month on ready-to-eat food products which was

around 14.00 per cent of their monthly consumption expenditure. Similar trend

was noticed with respect to other food items like cereals, pulses, fats and oils,

fruits and vegetables and milk and milk products. With respect to total monthly

expenditure, it was Rs. 2747.60 in high income group, Rs. 2331.35 in middle

income group and Rs. 1566.00 in low income group.

Among the three income groups studied high income group spend more

proportion (15.39%) of their monthly consumption expenditure on ready-to-eat

food products, while low income group spend 14.30 per cent of their monthly

consumption expenditure. It was surprising to see the consumption expenditure

of middle income group on ready-to-eat food products, where in they spend only

12.80 per cent of their monthly expenditure on ready-to-eat food products.

4.2.5 Monthly expenditure of households on ready-to-eat food

products

The monthly average expenditure of households on ready-to-eat food

products is presented in Table 4.11 and Fig.7. The average monthly expenditure

on biscuits was found to be highest in case of high income group (Rs. 128.38)

Page 81: Summer project report

followed by middle income group (Rs.82.94) and low income group (Rs. 60.70).

Similar trend was noticed with respect to other products like chips, fruit juice

and ice creams. On an average Hubli and Dharwad consumers spend about Rs.

85.86 on biscuits, Rs.41.75 on chips, Rs. 57.80 on fruit juice and Rs. 58.70 on

ice creams monthly.

The analysis of expenditure on ready-to-eat food products revealed that,

on an average the consumers of Hubli-Dharwad spend maximum on biscuits

(35.17%) followed by ice creams (24.04%), fruit juice (23.67%) and chips

(17.10%) out of their monthly expenditure on ready-to-eat food products.

Among the income groups studied, high income group spend the maximum on

biscuits (35.51%) followed by ice creams (26.44%), fruit juices (22.55%) and

chips (15.48%) out of their total consumption on ready-to-eat food products.

While middle income group after spending maximum on biscuits (34.45%), next

they preferred fruit juice (25.71%), ice creams (20.70%) and least was on chips

(19.11%). The expenditure of low income group followed the pattern of high

income group in the order of their spending on ready-to-eat food products.

4.2.6 Frequency and place of purchase

Table 4.12 shows the frequency and place of purchase by the respondents.

It could be seen from the table that, majority of the respondents purchased

biscuits twice in a week from bakeries and departmental stores (70.58% each)

and 41.17 per cent each of them purchased from retail outlet. This was followed

by once in a week from departmental stores (63.63%), bakeries (57.57%) and

42.42 per cent of the respondents purchased from retail outlets.

Most of the respondents purchased chips, fruits juice and ice creams

whenever needed. Majority of them purchased chips from bakeries (77.77%)

followed by departmental stores (29.62%) and only 24.07 per cent of the

respondents purchased from retail outlets. This was followed by fortnightly

Page 82: Summer project report

purchase of chips from bakeries (93.33%), departmental stores (40.00%) and

20.00 per cent of them purchased from retail outlets.

In case of fruit juice, maximum of the respondents purchased from

bakeries (50.87%) and least per cent of the respondents purchased from retail

outlets (22.80%). This was followed by once in a week purchase from bakeries

(53.84%), retail outlets (30.76%), departmental stores (23.07%) and least per

cent of the respondents purchased from ice parlors (15.38%). Ice creams were

mostly purchased in ice parlour (96.72%), when ever needed. Thirteen per cent

of the respondents bought ice creams from bakeries. Very few of them purchased

from retail outlets (4.91%) and departmental stores (3.27%). This was followed

by once in a week purchase from ice parlors (94.11%), bakeries (23.52%), retail

outlets (17.64%) and 11.76 per cent of them purchased from departmental stores.

Page 83: Summer project report

4.2.7 Nature of purchase decision

Nature of purchase decision among different age groups is presented in Table

4.13. In case of biscuits, among the first two age groups, maximum of the

respondents did a planned purchase (71.87% and 61.81% respectively) and only

28.12 per cent and 38.18 per cent of first and second age groups respectively did

impulsive buying. But in case of AG3, 55.55 per cent of them did impulsive

buying followed by only 44.44 per cent of them went for planned purchase. In

the last group, all the respondents planned and purchased biscuits and none of

them opted for impulsive buying. Overall, 65.00 per cent of them did planned

purchase and only 35.00 per cent of them did go for impulsive buying for

biscuits. About 73.91 per cent of the chips buyers did impulsive buying and

remaining 26.08 per cent of them did go for planned purchases. Among the first

three age groups, majority of the respondents did go for impulsive buying

(68.75%, 74.07% and 100.00% of the respondents of AG1, AG2 and AG3

respectively). About 31.25 per cent 25.92 per cent of the respondents of AG1 and

AG2 did planned purchase and none of the respondents of AG3 did planned

purchase.

Among the fruit juice buyers, 55.91 per cent of them planned the

purchase of fruit juice and remaining 44.08 per cent of them did go for impulsive

buying. Among the first age group most of them planned and purchased fruit

juice (68.75%) and only 31.25 per cent of them did go for impulsive buying. In

case of AG2, marginally higher per cent of the respondents did impulsive buying

(50.94%) followed by planned purchase by 49.05 per cent of the respondents. In

case of AG3, 50.00 per cent each of the respondents did go for impulsive buying

and planned purchase. In the case of ice creams, among the first age group

maximum of the respondents planned and purchased ice creams (64.51%)

followed by only 35.48 per cent of them went for impulsive buying. But in case

of AG2 and AG3 majority of them did impulsive buying (57.40% and 66.66%

respectively), 42.59 per cent and 33.33 per cent of AG2 and AG3 respectively

Page 84: Summer project report

did planned purchase. Overall, 51.06 and 48.93 per cent of ice cream buyers did

go for impulsive buying and planned purchase respectively.

4.2.8 Influence of income on purchase decisions on ready-to-eat

food products

Table 4.14 shows the influence of income on purchase decisions on

ready-to-eat food products. It could be noticed from the table that majority of the

respondents took self decision while purchasing biscuits (77.50%, 58.82% and

61.53% of low, middle and high income groups respectively), chips (58.66%,

74.19% and 59.57% respectively) and fruit juice (57.14%, 75.57% and 72.00%

respectively). This was followed by children’s and parent’s influence in low and

other two income groups respectively (52.00%, 51.47% and 38.46%). In case of

chips, next to self decision, friends influenced during the purchase in low and

high income groups (34.66% and 42.55% respectively) and children’s influence

was 48.38 per cent in the medium income group. The purchase of juice was

influenced by friends and parents in low and other two income groups

respectively (41.55, 54.23% and 52.00%). In case of ice creams majority of the

respondents of low (66.00%) and high income groups (72.00%) took self

decision. In the same income groups, children and friends influence the purchase

of ice-creams next to self decision (42.85% and 56.00%). However in case of

medium income group, friends influence the most (55.88%) followed by self

decision (44.11%).

4.2.9 Influence / Impact of education to make purchase decision

on ready-to-eat food products

Table 4.15 depicts the influence/impact of education to make purchase

decision on ready-to-eat food products. It could be seen from the table that

majority of the respondents of the education levels of primary school (100.00%),

high school (100.00%) and PUC level (73.33%), were influenced by parents

Page 85: Summer project report

while purchasing biscuits. Most of the respondents of degree holders and post

graduates took their own decision while purchasing biscuits (97.72% and

62.28% respectively).

Page 86: Summer project report

Table 4.7. Buyers and non-buyers of ready-to-eat food

products

(N= 200)

Products Age group Buyers Non-buyers

AG1 (n= 64) 64 (100.00) -

AG2 (n= 110) 110 (100.00) -

Biscuits AG3 (n= 18) 18 (100.00) -

AG4 (n= 8) 8 (100.00) -

Total (N = 200) 200 (100.00)

AG1 (n= 64) 64 (100.00) -

AG2 (n= 110) 108 (98.18) 2 (1.81)

Chips AG3 (n= 18) 12 (66.66) 6 (33.33)

AG4 (n= 8) - 8 (100.00)

Total (N = 200) 184 (92.00) 16 (8.00)

AG1 (n= 64) 64 (100.00) -

AG2 (n= 110) 106 (96.36) 4 (3.63)

Fruit juice AG3 (n= 18) 16 (88.88) 2 (11.11)

AG4 (n= 8) - 8 (100.00)

Total (N = 200) 186 (93.00) 14 (7.00)

AG1 (n= 64) 62 (96.87) 2 (3.12)

Page 87: Summer project report

AG2 (n= 110) 108 (98.18) 2 (1.81)

Ice creams AG3 (n= 18) 18 (100.00) -

AG4 (n= 8) - 8 (100.00)

Total (N = 200) 188 (94.00) 12 (6.00)

Note : Figures in the parentheses indicate percentage to the total number of respondents in

each age group.

Page 88: Summer project report

Television Radio Newspapers

Magazines Friends/relatives Shopkeeper/retailer

Window display

10.69

26.13

12.62

4.08

Page 89: Summer project report

17.52

17.89

11.06

Fig.5. Influence of media to create awareness about the brands

Fig.5. Influence of media to create awareness about the brands

Page 90: Summer project report

Table 4.8. Reasons for purchasing ready-to-eat food products by

consumers of Hubli –

Dharwad

Products

Reasons Biscuits Chips Fruit juice Ice creams

(n=200) (n=184) (n=186) (n=188)

Readily available106 86 104 64

(53.00) (46.73) (55.91) (34.04)

Taste92 148 110 116

(46.00) (80.43) (59.13) (61.70)

Liked by the family members120 58 68 74

(60.00) (31.52) (36.55) (39.36)

Influence of friends or relatives30 68 82 84

(15.00) (36.95) (44.08) (44.68)

Easily available in the shops78 48 28 48

(39.00) (26.08) (15.05) (25.53)

Convenient to use for snacks 130 118 50 26

Page 91: Summer project report

(65.00) (64.13) (26.88) (13.82)

Satisfaction86 96 88 104

(43.00) (52.17) (47.31) (55.31)

Save time of preparation46 72 92 52

(23.00) (39.13) (49.46) (27.65)

Any other -2 18

-(1.08) (9.67)

Note : Figures in parentheses indicate the percentage to the total number of users of the

respective product.

Page 92: Summer project report

Table 4.9. Reasons for not purchasing ready-to-eat food products by

consumers of

Hubli – Dharwad

Products

Reasons Biscuits Chips Fruit juice Ice creams

(n=0) (n=16) (n=14) (n=12)

Lack of awareness of products- - - -

available in the market

Dislike the product -8 6 12

(50.00) (42.85) (100.00)

High price -8 10 2

(50.00) (71.42) (16.66)

Page 93: Summer project report

Low quality -10 4 2

(62.50) (28.57) (16.66)

Not available in the shops - - - -

Health conscious - 16 - 8

(100.00) (66.66)

Any other - -12 4

(85.71) (33.33)

Note : Figures in parentheses indicate the percentage to the total number of non-users of the

respective product.

Page 94: Summer project report

Table 4.10. Monthly expenditure of households on food items

(Rs./month)

Items Income group Average

Low income Middle income High income

283.15 541.47 588.46 450.60

Cereals(18.08) (22.22) (21.41) (21.12)

Pulses 241.50 327.94 398.07 311.60

(15.42) (14.06) (14.48) (14.61)

244.25 314.70 398.46 308.30

Fats and oils(15.59) (13.49) (14.50) (14.45)

Fruits 261.25 394.11 423.07 348.50

and vegetables(16.68) (16.90) (15.39) (16.34)

Milk 311.25 545.61 516.17 418.30

and milk products(19.87) (23.40) (18.78) (19.61)

Ready- 224.00 298.52 423.07 301.10

to-eat food products(14.30) (12.80) (15.39) (14.11)

Total 1566.00 2331.35 2747.60 2133.30

(100.00) (100.00) (100.00) (100.00)

Note : Figures in parentheses indicate the percentage

Page 95: Summer project report

Cereals Pulses

Fats and oils Fruits and vegetables

Milk and milk products Ready to eat food producs

14.11

19.61

21.12

14.61

16.3414.45

Page 96: Summer project report

Fig. 6. Monthly expenditure of households on food items

Fig. 6. Monthly expenditure of households on food items

Page 97: Summer project report

Table 4.11. Monthly expenditure of households on ready-to-eat food products

(Rs./month)

Items Income group

Average

Low income Middle income High income

Biscuits 60.70 82.94 128.38 85.86

(35.77) (34.45) (35.51) (35.17)

Chips 28.87 46.02 55.96 41.75

(17.01) (19.11) (15.48) (17.10)

Fruit 38.87 61.91 8153 57.80

juice(22.91) (25.71) (22.55) (23.67)

Page 98: Summer project report

41.25 49.85 95.57 58.70

Ice creams(24.31) (20.70) (26.44) (24.04)

Total 169.69 240.72 361.44 244.11

(100.00) (100.00) (100.00) (100.00)

Note : Figures in parentheses indicate the percentage

Page 99: Summer project report

Biscuits Chips Fruit juice Ice creams

24.04

35.17

23.67

17.1

Page 100: Summer project report

Fig. 7. Monthly expenditure of households on ready-to-eat food products

Fig. 7. Monthly expenditure of households on ready-to-eat food products

Page 101: Summer project report

Table 4.12. Frequency and place of purchase by the respondents

Daily (n = 28) Twice in a week (n = 68) Once in a week (n = 66) Fortnightly (n = 12) Whenever needed (n = 26)

R D B I R D B I R D B I R D B I R D B I

Biscuits

22 6 16 - 28 48 48 - 28 42 38 - 6 6 - - 20 24 20 -(n =

(78.57) (21.42) (57.14) (41.17) (70.58) (70.58) (42.42) (63.63) (57.57) (50.00) (50.00) (76.92) (92.30) (76.92)200)

Daily (n = 2) Twice in a week (n = 20) Once in a week (n = 24) Fortnightly (n = 30) Whenever needed (n = 108)

ChipsR D B I R D B I R D B I R D B I R D B I

(n =

184)- - 2 - 12 8 18 - 10 6 22 - 6 12 28 - 26 32 84 -

(100.00) (60.00) (40.00) (90.00) (41.66) (23.07) (91.66) (20.00) (40.00) (93.33) (24.07) (29.62) (77.77)

Daily (n = 8) Twice in a week (n = 14) Once in a week (n = 26) Fortnightly (n = 24) Whenever needed (n = 114)

Fruit R D B I R D B I R D B I R D B I R D B I

juice (n

= 186) - 4 4 4 4 2 12 6 8 6 14 4 10 12 12 - 26 36 58 38

(50.00) (50.00) (50.00) (28.57) (14.28) (85.70) (42.85) (30.76) (23.07) (53.84) (15.38) (41.66) (50.00) (50.00) (22.80) (31.50) (50.87) (33.33)

Page 102: Summer project report

Daily (n = 4) Twice in a week (n = 6) Once in a week (n = 34) Fortnightly (n = 22) Whenever needed (n = 122)

IceR D B I R D B I R D B I R D B I R D B I

creams

(n =

188) - - - 4 - - 4 6 6 4 8 32 2 2 8 20 6 4 16 118

(100.0) (66.66) (100.0) (17.64) (11.76) (23.52) (94.11) (9.09) (9.09) (36.36) (90.90) (4.91) (3.27) (13.11) (96.72)

Note : Figures in parentheses indicate percentages.

R – Retail outlets D – Departmental stores B – Bakeries I – Ice parlors.

Page 103: Summer project report

Table 4.13. Nature of purchase decision among different age groups

Age group

Nature of purchaseProducts AG1 AG2(n AG3 (n AG4

decision Overall(n=64) = 110) = 18) (n = 8)

Impulsive buying 18 (28.12) 42 (38.18) 10(55.55) -70

Biscuits (35.00)

(n=200) Planned purchase 46 (71.87)68 8 8 130

(61.81) (44.44) (100.00) (65.00)

Nature of purchaseAG1 AG2(n AG3 (n AG4

Overalldecision (n=64) = 108) = 12) (n = 0)

Chips (n12 136

= 184) Impulsive buying 44 (68.75) 80 (74.07) -(100.00) (73.91)

Planned purchase 20 (31.25)28

- -48

(25.92) (26.08)

Nature of purchaseAG1 AG2(n AG3 (n AG4

Overalldecision (n=64) = 106) = 16) (n = 0)

Fruit juice54 8 82

(n = 186) Impulsive buying 20 (31.25) -(50.94) (50.00) (44.08)

Planned purchase 44 (68.75)52 8

-104

Page 104: Summer project report

Nature of purchaseAG1 AG2(n AG3 (n AG4

Overalldecision (n=62) = 108) = 18) (n = 0)

Ice

creamsImpulsive buying 22 (35.48) 62 (57.40) 12(66.66) -

96

(n= 188) (51.06)

Planned purchase 40 (64.51)46 6

-92

(42.59) (33.33) (48.93)

Note : Figures in the parentheses indicate percentage to the total number of users in each

age group.

Page 105: Summer project report

Table 4.14. Influence of income on purchase decisions on ready-to-eat food products

Products Income group Parents Children Friends Neighbours Shopkeeper Self decision

Low (n = 80) 37 (46.25) 42 (52.50) 20 (25.00) 8 (10.00) 12 (15.00) 62 (77.50)

Biscuits (n = 200)Medium (n=68) 35 (51.47) 30 (44.14) 18 (26.47) 10 (14.70) 18 (26.47) 40 (58.82)

High (n = 52) 20 (38.46) 16 (30.76) 16 (30.76) 4 (7.69) 8 (15.38) 32 (61.53)

Total 92 (46.00) 88 (44.00) 54 (27.00) 22 (11.00) 38 (19.00) 134 (67.00)

Low (n = 75) 6 (8.00) 24 (32.00) 26 (34.66) 10 (13.33) 6 (8.00) 44 (58.66)

ChipsMedium (n=62) 18 (29.03) 30 (48.38) 20 (32.25) 12 (19.35) 10 (16.12) 46 (74.19)

(n=184)

High (n = 47) 8 (17.02) 18 (38.29) 20 (42.55) 2 (4.25) 2 (4.25) 28 (59.57)

Total 32 (17.39) 72 (39.13) 66 (35.86) 24 (13.04) 18 (9.78) 118 (64.13)

Low (n = 77) 20 (25.97) 12 (15.58) 32 (41.55) 12 (15.58) 6 (7.79) 44 (57.14)

Fruit juice (n=186)Medium (n=59) 32 (54.23) 20 (33.89) 20 (33.89) 2 (3.38) 12 (20.33) 44 (75.57)

High (n = 50) 26 (52.00) 10 (20.00) 20 (40.00) - 4 (8.00) 36 (72.00)

Total 78 (41.93) 42 (22.58) 72 (38.70) 14 (7.51) 22 (11.82) 124 (66.66)

Low (n = 70) 4 (5.71) 30 (42.85) 26 (37.14) 8 (11.42) 2 (2.85) 42 (66.00)

Ice creams (n=188)Medium (n=68) 6 (8.82) 20 (29.41) 38 (55.88) 6 (8.82) 8 (11.76) 30 (44.11)

Page 106: Summer project report

High (n = 50) 6 (12.00) 24 (48.00) 28 (56.00) 6 (12.00) 4 (8.00) 36 (72.00)

Total 16 (8.51) 74 (39.36) 92 (48.93) 20 (10.63) 14 (7.44) 108 (57.44)

Note : Figures in parentheses indicate percentage to the total number of users in each income group.

Page 107: Summer project report

Table 4.15. Influence /impact of education to make purchase decision on ready-to-eat food products

Products Education level Parents Children Friends Neighbours Shopkeeper Self decision

Primary school (n = 4) 4 (100.00) - 1 (25.00) - - -

High school (n = 20) 20 (100.00) 6 (30.00) 6 (30.00) 4 (20.00) 4 (20.00) 8 (40.00)

BiscuitsPUC (n = 60) 44 (73.33) 6 (10.00 6 (10.00) 2 (3.33) 18 (30.00) 22 (36.66)

(n = 200)

Degree (n = 88) 22 (25.00) 66 (75.00) 31 (35.22) 16 (18.18) 16 (18.18) 86 (97.72)

PG ( n = 28) 2 (7.14) 10 (35.71) 10 (35.71) - - 18 (64.28)

Primary school (n = 2) 2 (100.00) - - - - -

High school (n = 16) 6 (37.50) 6 (37.50) 10 (62.50) 4 (25.00) 4 (25.00) 6 (37.50)

ChipsPUC (n = 55) 2 (3.63) 6 (10.90) 25 (45.45) 2 (3.63) - 20 (36.36)

(n = 184)Degree (n = 86) 22 (25.58) 35 (46.69) 13 (15.11) 16 (18.60) 14 (16.27) 74 (86.04)

PG ( n = 25) - 25 (100.00) 18 (72.00) - - 18 (72.00)

Primary school (n = 0) - - - - - -

Fruit juiceHigh school (n = 18) 10 (55.55) 6 (33.33) 6 (33.33) 4 (22.22) 4 (22.22) 8 (44.44)

(n = 186)PUC (n = 59) 6 (10.16) 4 (6.77) 12 (20.33) 2 (3.38) 2 (3.38) 18 (30.50)

Degree (n = 85) 52 (61.17) 24 (28.23) 50 (58.82) 10 (11.76) 16 (18.82) 80 (94.11)

PG ( n = 24) 10 (41.66) 8 (33.33) 4 (16.66) - - 18 (75.00)

Page 108: Summer project report

Primary school (n = 0) - - - - - -

Ice creams High school (n = 20) 4 (20.00) 6 (30.00) 8 (40.00) 20 (100.00) 2 (10.00) 6 (30.00)

(n = 188)PUC (n = 60) 2 (3.33) 2 (3.33) 12 (20.00) 50 (83.33) 2 (3.33) 5 (8.33)

Degree (n = 85) 10 (11.76) 52 (61.17) 66 (77.64) 30 (35.29) 10 (11.76) 75 (88.23)

PG ( n = 23) - 14 (60.86) 6 (26.08) - - 22 (95.65)

Note : Figures in parentheses indicate percentage to the total number of users in each education level.

Page 109: Summer project report

In the case of chips, all the respondents of primary education level were

influenced by their parents while taking purchase decisions. Majority of the

respondents of high school level and PUC level were influenced by friends

(62.50% and 45.45% respectively). Degree holders mostly took self decision

(86.04%) while making purchase decisions. Most of the post graduates were

influenced by children (100.00%) while making purchase decisions.

In case of fruits juice, majority of the respondents of high school level

were influenced by parents while taking purchase decisions (55.55%). Most of

the respondents of PUC level, degree holders and post-graduate took their own

decision while purchasing (30.50%, 94.11% and 75.00% respectively) fruit juice.

Ice cream purchasing decision was mainly influenced by neighbours in

high school and PUC level respondents (100.00% and 83.33% respectively).

Most of the respondents took self decision while purchasing in case of post

graduate respondents (88.23% and 95.65% respectively).

4.2.10 Preference for type of biscuits

Table 4.16 presents preference for type of biscuits among different age

groups. It was observed from the table that, among the first age group (AG1)

maximum of the respondents preferred sweet biscuits (65.62%), followed by

cream biscuits (50.00%), salted biscuits (18.75%) and wafers (12.50%) were less

preferred. Cream biscuits were mostly preferred (54.54%) in the AG2, followed

by salted biscuits (41.81%), sweet biscuits (38.18%), high fibre content biscuits

(18.18%) and wafers (16.36%). In the AG3, 66.66 per cent of them preferred

sweet biscuits. Cream biscuits, wafers and salted biscuits were preferred by

55.55 per cent each. Only 33.33 per cent of them did go for high fibre content

biscuits in this age group. All the respondents of AG4 preferred sweet biscuits.

Fifty per cent of the respondents also preferred salted biscuits. Only a small

percentage of the respondents (25.00%) preferred high fibre content biscuits. In

Page 110: Summer project report

the last age group none of respondents preferred cream biscuits and wafers. None

of the respondents preferred high fibre content biscuits in the AG1 . Overall,

more than 50.00 per cent of the respondents preferred sweet biscuits and cream

biscuits. Only a small percentage of the respondents (14.00%) did go for high

fibre content biscuits.

4.2.11 Preference for variety of chips

Table 4.17 shows preference for variety of chips among different age

groups. It could be seen from the table that preference for potato chips was found

to be highest (78.26%) followed by banana chips (51.08%), jack fruit chips

(31.52%) and only 10.86 per cent of them did go for sweet potato chips. Potato

chips were mostly preferred by cent per cent, 81.25 per cent and 74.07 per cent

of AG3, AG1 and AG2 respondents accordingly. Among the first two age groups

i.e., AG1 and AG2 the next preference was given for banana chips (40.62% and

61.11% respectively) followed by jack fruit chips (37.5% and 27.77%

respectively) and sweet potato chips were less preferred among these two age

groups i.e., AG1 (12.50%) and AG2 (9.25%). In the AG3 category jack fruit

chips were preferred by 33.33 per cent of the respondents, banana chips and

sweet potato chips were preferred by less number of respondents (16.66% each).

4.2.12 Preference for flavour in chips

Table 4.18 depicts preference for flavour in chips among different age

groups. The table reveals that, maximum of the respondents preferred chilly

flavoured/masala chips (69.56%) followed by tomato flavoured (48.91%) chips

and 41.30 per cent of the respondents preferred salted/plain chips. Chilly

flavoured / masala chips were most preferred among AG1 and AG2 (68.75% and

70.37% respectively), followed by tomato flavoured chips by 40.62 per cent and

55.55 per cent of AG1 and AG2 respondents respectively and salted/plain chips

were less preferred by 28.12 per cent and 46.29 per cent of AG1 and AG2

Page 111: Summer project report

consumers accordingly. In the AG3 salted / plain chips were most preferred

(66.66%) and 33.33 per cent each of the respondents preferred tomato flavoured

and chilly flavoured / masala chips.

4.2.13 Preference for type of fruit juice

Table 4.19 presents preference for type of fruit juice among different age

groups. The table reveals that maximum of the respondents preferred mango

juice (61.29%) followed by apple juice and orange juice (46.23% each). Thirty

one per cent of them preferred pineapple juice and strawberry was preferred only

by 13.97 per cent of the respondents. In the first age group (AG1), majority of

the respondents preferred apple juice (56.25%), subsequently orange juice was

preferred by 50 per cent, mango juice by 46.87 per cent, 25 per cent of them did

go for pineapple juice and only 15.62 per cent preferred strawberry juice. Mango

juice was preferred by most of the respondents (69.81%) in AG2, followed by

orange juice (43.39%), 35.84 per cent of them preferred pineapple juice, 30.18

per cent did go for apple juice and strawberry juice was least preferred (13.20%)

among AG2 respondents. In the AG3 category, apple juice was preferred by all

the respondents. In addition, 62.50 per cent of them preferred mango juice, 50.00

per cent of them did go for orange juice, pineapple juice was preferred by 25.00

per cent of the respondents and only 12.50 per cent of them preferred strawberry

juice.

Page 112: Summer project report

4.2.14 Preference for type of ice creams

Table 4.20 presents preference for type of ice creams among different age

groups. It could be noticed from the table that among the first two age groups

i.e., AG1 and AG2 most of the respondents did go for cone ice creams (77.41%

and 75.92% respectively). This was followed by cup ice creams (38.70% and

38.88% of the respondents of AG1 and AG2 respectively). Ninteen and twenty

six per cent of the respondents of AG1 and AG2 respectively preferred candy.

Scoop was preferred among 16.12 per cent and 22.22 per cent of the respondents

of AG1 and AG2 accordingly. A meagre percentage of respondents (1.85%)

preferred family packs in AG2, but none of the respondents of AG1 preferred

family packs. In the third age group, majority of them did go for cone ice creams

(66.66%). Cup ice creams were preferred by 44.44 per cent and 22.22 per cent

preferred scoop. Candy and family packs were preferred by 11.11 per cent each

of the respondents. At the aggregate level, major proportion of respondents

preferred cone ice creams (75.53%) followed by cup (39.36%), candy (22.34%),

scoop (20.21%) and family packs were preferred by only 2.12 per cent of the

respondents.

4.2.15 Preference for flavour in ice creams

An analysis of preference for flavour in ice creams among different age

groups is depicted in Table 4.21. It was observed from the table that chocolate

flavour was highly preferred among the first age group (70.96%), followed by

vanilla (54.83%), pista (41.93), butterscotch (25.80%), strawberry (9.67%) and

mango (6.45%).

In case of AG2, maximum of the respondents preferred vanilla flavour

(55.55%) followed by pista flavour (40.47%), chocolate flavour (35.18%),

mango (22.22%), strawberry (20.37%) and butterscotch (7.40%). The results

Page 113: Summer project report

also revealed that, about 77.77 per cent of the respondents of AG3 preferred

vanilla flavour, pista flavour was preferred by 66.66 per cent of the respondents

and chocolate flavour was less preferred in this age group (11.11%). Strawberry,

mango and butterscotch were preferred by 22.22 per cent each of the respondents

of this age group.

At the overall level, vanilla flavour was most preferred (57.44%),

followed by chocolate flavour (44.68%), pista (43.61%), mango and strawberry

flavours (17.02% each) and least preferred flavour was butter scotch (14.89%).

4.3 BRAND PREFERENCE OF THE CONSUMERS

Table 4.22 to Table 4.25 shows the rank matrix of common brands

preferred among the products. The brands have been considered based on mean

scores of preferential order of brands considered by the consumers. Preferential

order of brands were obtained based on Garrett’s ranking test.

4.3.1 Brand preference for biscuits

Brand preference of the respondents for biscuits is presented in Table

4.22. Maximum of the respondents preferred Parle-G biscuits (mean score of

69.99) followed by Good day (mean score of 69.62), Marie gold (mean score of

61.14), Hide and seek (mean score of 54.74), Tiger biscuits (mean score of

53.79), Krack jack (mean score of 52.86), Britannia 50-50 (mean score of 48.76),

Britannia little hearts (mean score of 45.61), Parle Monaco (mean score of 43.68)

and Glucose biscuits (mean score of 43.41).

Page 114: Summer project report

Table 4.16. Preference for type of biscuits among different age groups

Age group

Type of biscuitsAG1 AG2 AG3 AG4 Overall

(n=64) (n = 110) (n = 18) (n = 8) (N=200)

32 60 10 102

Cream biscuits -

(50.00) (54.54) (55.55) (51.00)

8 18 10 36

Wafers -

(12.50) (16.36) (55.55) (18.00)

12 46 10 4 72

Salted biscuits

(18.75) (41.81) (55.55) (50.00) (36.00)

42 42 12 8 104

Sweet biscuits

(65.62) (38.18) (66.66) (100.00) (52.00)

High fibre content 20 6 2 28

-biscuits (18.18) (33.33) (25.00) (14.00)

Note : Figures in the parentheses indicate percentage to the total number of users in

each age group.

Table 4.17. Preference for variety of chips among different age groups

Age group

Page 115: Summer project report

Variety of chips AG1 AG2 AG3 AG4Overall

(n = 64) (n = 108) (n=12) (n = 0)(n=184)

Banana chips26 66 2

-94

(40.62) (61.11) (16.66) (51.08)

Potato chips52 80 12

-144

(81.25) (74.07) (100.00) (78.26)

Sweet potato chips8 10 2

-20

(12.50) (9.25) (16.66) (10.86)

Jack fruit chips24 30 4

-58

(37.50) (27.77) (33.33) (31.52)

Note : Figures in the parentheses indicate percentage to the total number of users in

each age group.

Page 116: Summer project report

Table 4.18. Preference for flavour in chips among different age groups

Age group

Flavour in chips AG1 AG2 AG3 AG4 Overall

(n = 64) (n = 108) (n=12) (n = 0) (n=184)

18 50 8 - 76

Salted/ plain(28.12) (46.29) (66.66) (41.30)

26 60 4 - 90

Tomato flavoured (40.62) (55.55) (33.33) (48.91)

Chilly flavoured / 44 76 4 - 128

Masala (68.75) (70.37) (33.33) (69.56)

Note : Figures in the parentheses indicate percentage to the total number of users in

each age group.

Table 4.19. Preference for type of fruit juice among different age groups

Age group

Type of fruit

juice AG1 (n AG2 AG3 (n=16) AG4 Overall

= 64) (n = 106) (n = 0) (n=186)

30 74 10 144

Mango -

(46.87) (69.81) (62.50) (61.29)

36 32 16 86

Apple -

(56.25) (30.18) (100.00) (46.23)

Page 117: Summer project report

32 46 8 86

Orange -

(50.00) (43.39) (50.00) (46.23)

10 14 2 26

Strawberry -

(15.62) (13.20) (12.50) (13.97)

16 38 4 58

Pineapple -

(25.00) (35.84) (25.00) (31.18)

Note : Figures in the parentheses indicate percentage to the total number of users in

each age group.

Page 118: Summer project report

Table 4.20. Preference for type of ice creams among different age groups

Age group

Type of ice

creams AG1 (n AG2 AG3 (n=18) AG4 (n Overall

= 62) (n = 108) = 0) (n=188)

48 82 12 142

Cone -

(77.41) (75.92) (66.66) (75.53)

24 42 8 74

Cup -

(38.70) (38.88) (44.44) (39.36)

10 24 4 38

Scoop -

(16.12) (22.22) (22.22) (20.21)

Page 119: Summer project report

12 28 2 42

Candy -

(19.35) (25.92) (11.11) (22.34 )

2 2 4

Family pack - -

(1.85) (11.11) (2.12)

Note : Figures in the parentheses indicate percentage to the total number of users in each

age group.

Page 120: Summer project report

Table 4.21. Preference for flavour in ice creams among different age groups

Age group

FlavoursAG1 AG2 AG3 (n=18) AG4 Overall

(n = 62) (n = 108) (n = 0) (n=188)

34 60 14 108

Vanilla -

(54.83) (55.55) (77.77) (57.44)

6 22 4 32

Strawberry -

(9.67) (20.37) (22.22) (17.02)

44 38 2 84

Chocolate -

(70.96) (35.18) (11.11) (44.68)

4 24 4 32

Mango -

(6.45) (22.22) (22.22) (17.02)

Page 121: Summer project report

26 44 12 82

Pista -

(41.93) (40.74) (66.66) (43.61)

16 8 4 28

Butterscotch -

(25.80) (7.40) (22.22) (14.89)

Note : Figures in the parentheses indicate percentage to the total number of users in each

age group.

Page 122: Summer project report

Table 4.22. Brand preference for biscuits

Biscuit Brands Rankings Mean score

Parle-G I 69.99

Good day II 69.62

Marie gold III 61.14

Hide and seek IV 54.74

Tiger biscuits V 53.79

Krack jack VI 52.86

Britannia 50-50 VII 48.76

Britannia little hearts VIII 45.61

Parle Monaco IX 43.68

Glucose X 43.41

Sunfeast snacky XI 42.13

Chocolate chip cookies XII 38.95

Britannia Time pass XIII 38.88

Sunfeast glucose XIV 37.44

Table 4.23. Brand preference for chips

Chips Brands Rankings Mean score

Lays I 71.55

Uncle chips II 59.67

Bingo III 51.03

Page 123: Summer project report

Haldiram chips IV 49.90

Local brand/unbranded chips V 46.25

Lehar VI 42.00

Diamond chips VII 39.90

Lip chips VIII 38.68

Page 124: Summer project report

4.3.2 Brand preference for chips

Table 4.23 presents brand preference for chips. It could be seen from the

table that majority of the respondents preferred Lays brand in chips (mean score

of 71.55) followed by Uncle chips (mean score of 59.67), Bingo (mean score of

51.03), Haldiram chips (mean score of 49.90), local/unbranded chips (mean

score of 46.25), Lehar (mean score of 42.00), Diamond chips (mean score of

39.90) and Lip chips (mean score of 38.68).

4.3.3 Brand preference for fruit juice

Table 4.24 shows brand preference for fruit juice. It was observed from

the table that maximum of the respondents preferred Maaza brand (mean score

of 62.81), followed by Frooti (mean score of 62.61), Slice (mean score of 56.00),

Appy (mean score of 48.89), Real fresh (mean score of 44.17), Pulpy orange

(mean score of 38.59) and Tropicana twister (mean score of 35.91).

4.3.4 Brand preference for ice creams

Table 4.25 presents brand preference for ice creams. It could be noticed

from the table that maximum of the respondents preferred Amul brand of ice

creams (mean score of 74.95), followed by Kwality walls (mean score of 56.21),

MTR (mean score of 53.82), Arun (mean score of 52.52), Nandini (mean score

of 52.12), Vadilal (mean score of 48.97), Dairy day (41.48), Hangya (mean score

of 38.59) and Dinshaws (mean score of 31.28).

4.4 FACTORS INFLUENCING BRAND PREFERENCE

Table 4.26 shows the rank matrix of common factors influencing the

brand preference among the products.

Page 125: Summer project report

While preferring a particular brand in biscuits quality was considered as

the foremost factor (mean score of 75.74). Second important factor was taste

with a mean score of 74.79. Reasonable price was ranked as third factor (mean

score of 64.60). Quantity and availability of the brands were ranked fourth and

fifth ranks respectively (mean score of 59.08 and 56.70 respectively). While

preferring a particular brand in chips, fruit juice and ice creams, taste was

considered as the foremost factor in all the products (mean score of 80.35, 77.29

and 79.05 respectively). Quality was considered as the second important factor

by the consumers (mean score of 71.22, 75.23 and 74.18 respectively). Third

criteria considered was reasonable price in all the three products (mean score of

62.46, 62.29 and 64.21 respectively). Quantity and brand image were considered

as fourth and fifth criteria respectively (mean score of 59.92, 60.04 and 57.43,

and 54.57, 56.15 and 55.70 respectively).

In case of all the four products retailers influence was considered as the

last criteria for the preference of a particular brand (mean score of 27.91, 30.32,

28.53 and 31.45 respectively).

4.5 ALTERNATIVE PURCHASE PLANS OF READY-TO-EAT FOOD

PRODUCTS

Table 4.27 reveals alternative purchase plans of ready-to-eat food products.

Majority of the respondents in case of biscuits (80.00%), chips (60.86%), fruit

juice (58.06%) and ice creams (56.38%) would go to other shops if preferred

brand was not available. In the case of biscuit consumers, 27.00 per cent of the

respondents would postpone their purchase decision if their preferred brand was

not available, 22.00 per cent of them bought other brand and 26.00 per cent of

the respondents placed order to get required brand. In case of chips, 40.21 per

cent of the respondents opined to buy other brand if their favourite brand was not

available, 36.95 per cent of them would postpone the purchase decision and only

23.91 per cent of the respondents planned to place order to get their required

Page 126: Summer project report

brand. In case of fruit juice, if required brand was not available in the market

34.40 per cent of the respondents were ready to postpone their purchase decision,

38.70 per cent of the respondents opined that they would buy other brand and

21.50 per cent of them said they would place order to get their required brand. In

case of ice creams, 40.42 per cent of the respondents opined that they would

postpone the purchase decision of their preferred brand was not available in the

market, 32.97 per cent of them would buy some other brands and 34.04 per cent

of the respondents said they would place order to get required brand.

Page 127: Summer project report

Table 4.24. Brand preference for fruit juice

Fruit Juice Brands Rankings Mean score

Maaza I 62.81

Frooti II 62.61

Slice III 56.00

Appy IV 48.89

Real fresh V 44.17

Pulpy orange VI 38.59

Tropicana twister VII 35.91

Table 4.25. Brand preference for ice creams

Ice cream Brands Rankings Mean score

Amul I 74.95

Kwality walls II 56.21

MTR III 53.82

Arun IV 52.52

Nandini V 52.12

Vadilal VI 48.97

Dairy day VII 41.48

Page 128: Summer project report

Hangya VIII 38.59

Dinshaws IX 31.28

Page 129: Summer project report

Table 4.26. Factors influencing brand preference

Biscuits Chips Fruit juice Ice creams

FactorsRanking Mean Ranking Mean Ranking Mean Ranking Mean

score score score score

Reasonable price III 64.60 III 62.46 III 62.29 III 64.21

Taste II 74.79 I 80.35 I 77.29 I 79.05

Quality I 75.74 II 71.22 II 75.23 II 74.18

Quantity IV 59.08 IV 59.92 IV 66.04 IV 57.43

Brand image VI 54.73 V 54.57 V 56.15 V 55.70

Availability V 56.70 VI 54.38 VI 53.43 VI 51.57

Advertisements VII 50.76 IX 45.72 VII 50.21 VII 49.37

Packaging design X 42.65 X 42.18 X 43.79 X 42.25

Friends XII 37.62 XI 41.42 XII 39.30 XII 38.51

Labeling XIII 32.76 XIII 36.14 XIII 35.23 XIII 36.70

Offers XIV 32.13 XIV 33.04 XIV 31.27 XIV 33.94

Freshness VII 52.30 VII 50.46 VIII 49.60 VIII 47.60

Retailers influence XV 27.91 XV 30.32 XV 28.53 XV 31.45

Long shelf-life of the IX 48.89 VIII 47.32 IX 47.26 XI 42.20

products

Availabilityofrange XI 39.34 XII 40.42 XI 40.32 IX 45.78

Page 130: Summer project report

products

Page 131: Summer project report

Table 4.27. Alternative purchase plans of ready-to-eat food products

Alternative purchaseProducts

plansBiscuits

Chips (n=184)Fruit juice Ice creams

(n=200) (n=186) (n=188)

Go to other shop160 112 108 106

(80.00) (60.86) (58.06) (56.38)

Post pone the 54 68 64 76

purchase (27.00) (36.95) (34.40) (40.42)

Will buy other brand 44 74 72 62

(22.00) (40.21) (38.70) (32.97)

Page 132: Summer project report

Place order to get 52 44 40 64

required brand (26.00) (23.91) (21.50) (34.04)

Note : Figures in the parentheses indicate percentage to the total number of users of the

respective products.

Page 133: Summer project report

5. DISCUSSION

The results of the investigation presented in the previous chapter are

discussed in this chapter under the following heads.

5.1 Awareness of consumers towards branded ready-to-eat food products.

5.2 Purchase behaviour of consumers towards ready-to-eat food products.

5.3 Brand preference of the consumers.

5.4 Factors influencing brand preference.

5.5 Alternative purchase plans of the consumers.

5.1 AWARENESS OF CONSUMERS TOWARDS BRANDED READY-

TO-EAT FOOD PRODUCTS

5.1.1 General information about the selected samples

From the Table 4.1, it was evident that the age of the majority of the

respondents was between 21-40 years and most of them were female. The higher

percentage of the respondents were degree holders and none of the selected

respondents were illiterates. Since the study was undertaken in Hubli-Dharwad

city limits it was quite obvious for the respondents to have at least minimum of

the education, as the city is known as the education centre. In the present study

majority of the respondents belonged to nuclear families with medium family

size (5-7 members) and most of them were vegetarians. Higher percentage of the

respondents belonged to low income group (<Rs.8715.70) and majority of them

were students.

Page 134: Summer project report

5.1.2 Brand awareness of consumers about biscuits among different age

groups

It was noticed from Table 4.2 that among the first age group, cent per cent

each of the respondents were aware of Parle-G, Good day and Krack jack brands.

Tiger biscuits, Marie gold, Sunfeast Glucose, Hide and seek, Glucose and Parle

Monaco brands were familiar among more than 70.00 per cent of the respondents

of AG1. In addition, other brands like Britannia 50-50, Sunfeast snacky,

Chocolate chip cookies, Britannia Time pass and Britannia little hearts brands

were known to more than half of the respondents as they are highly advertised

through various mass media and this age group was more exposed to media. In

case of AG2, 98.18 per cent each of the respondents knew Parle-G and Good day

brands, followed by 96.36 per cent each aware of Tiger biscuits, Marie gold and

Krack jack brands. Parle-G and Marie gold biscuits were very popular among

AG3 and AG4. Tiger biscuits and Glucose brands were also known to all the

respondents of AG4. Parle-G was the local brand being produced by LVT Pvt.

Ltd., So also the Tiger biscuits and Marie Gold biscuits. Hence, reach of these

brands was highly penetrative due to locational advantage. Each and every petty

shop also keeps these brands. Irrespective of the age group whoever visit the

shops would come to know about these brands. Therefore, these brands were

popular in all the age groups. But none of the respondents of AG4 were aware of

Chocolate chip cookies brand, Sunfeast snacky, Sunfeast glucose, Britannia

Time pass and also Britannia little hearts brands. This age group doesn’t prefer

much of the ready-to-eat products except some familiar ones.

5.1.3 Brand awareness of consumers about chips among different age

groups

From Table 4.3 it was observed that Lays brand was familiar among

100.00 per cent, 96.36 per cent, 88.88 per cent and 75.00 per cent of the

consumers of AG1, AG2, AG3 and AG4 accordingly. In case of AG1 Uncle

Page 135: Summer project report

chips, Lip chips, Diamond chips and Lehar chips were well known to 93.75,

43.75, 34.37 and 50.00 per cent of the respondents and about 59.37 per cent each

aware of Bingo and Haldiram brands. More than half of the respondents of AG2

and AG3 were conscious of Lehar brand. Uncle chips and Bingo brands were

familiar among more than 70.00 per cent of the AG2 and AG3 respondents. In

addition to these brands, Haldiram chips was known to 70.90 per cent of AG2

and 55.55 per cent of AG3

Page 136: Summer project report

respondents. About 36.36 per cent each were aware of Lip chips and Diamond

chips among AG2. Fifty per cent of the respondents were aware of Uncle chips

and 25.00 per cent of the respondents were conscious of Bingo brand in case of

AG4 respondents. It could also be seen from the table that, none of the

respondents of this age group were familiar with Haldiram chips, Lip chips,

Diamond chips and Lehar brands.

Ready-to-eat food products are the delicacy of lower age groups as

compared to the old age people, who usually do not consume them much. Chips

were no exception to this. The younger generations are the innovators of various

brands in the market due to varied taste, attractive packing, advertisements

through different media or influence by friends. Hence, the recent brands like

Lip chips, Haldiram chips, Diamond chips and Lehar brands were more known

to young age group.

5.1.4 Brand awareness of consumers about fruit juice among different age

groups

It was noticed from Table 4.4 that Frooti brand was very popular among

96.00 per cent of respondents, followed by Maaza brand (93.00%) and Slice by

87.00 per cent of respondents. All the respondents of AG1 and AG4 were

conscious of Frooti brand. Among first age group Appy, Maaza and Slice brands

were well known to more than 70.00 per cent of the respondents. Among AG2,

majority of the respondents were familiar with Frooti and Maaza brand (94.54%

each), Slice, Appy, Pulpy orange and Real fresh brands were familiar among

85.45, 83.63, 69.09 and 63.63 per cent of the respondents. All the respondents of

AG3 were conscious of Maaza brand. Frooti, Slice and Real fresh brands were

familiar among more than 70.00 per cent of respondents. Among the first three

age groups Tropicana, twister brand was less familiar. Because this brand is a

new entrant in the market. It was also noticed from the table that Real fresh,

Appy, Tropicana twister and Pulpy orange brands were not known to any of the

Page 137: Summer project report

respondents of AG4. Because of the reasons discussed in earlier section, all the

brands were known to the younger age group as they were brand innovators.

5.1.5 Brand awareness of consumers about ice creams among different age

groups

Amul brand is one of the popular brand for milk products in our country.

Because of its quality products this brand is very well known to almost all the

people in our country. Similarly, it was observed that all the respondents of AG1,

AG2 and AG4 and also most of the respondents of AG3 (88.88%) were aware of

Amul brand. More than half of the respondents AG1 were conscious of all other

brands like Arun, MTR, Nandini, Kwality walls, Vadilal, Dairy Day except

Dinshaws brand (only 25.00%). Dinshaws brand was introduced into market

recently and hence it was not very popular. Among the first three age groups

MTR and Kwality walls were also popular brands. MTR is a very popular brand

in south India and also Kwality walls is a famous brand in the whole country,

hence these brands accounted for a higher percentage of awareness among the

consumers. In case of AG4 none of the respondents were aware of MTR,

Nandini, Kwality walls, Hangya and Dinshaws brands as observed from Table

4.5.

More brands of all the products were known among the first three age

groups, when compared to the last age group. More exposure to the media and

also interest in ready-to-eat food products among the younger generations had

promoted them to know about different brands of ice creams.

5.1.6 Influence of media to create awareness about the brands

It was observed from the Table 4.6 that, in case of all the four products

i.e., biscuits, chips, fruit juice and ice creams the majority of the respondents said

television as the major source of information (92.00%, 93.00%, 86.00% and

Page 138: Summer project report

81.00% of the respondents of biscuits, chips, fruit juice and ice creams

respectively) for brand awareness. Television is one of the important mass media

in today’s world. Television is attractive and advantageous because of its audio-

visual effect, which renders the clear picturization about the information on

different products and services. This inturn persuades the audience in influencing

their brand awareness. In addition, the product manufacturers also go for

promoting their products through television advertisements which highly attracts

the audience/consumers. Overall, 26.13 per cent of the respondents were

influenced by television for getting information

Page 139: Summer project report

regarding various brands. Apart from this, newspapers (17.89%) and

friends/relatives (17.52%) were also the major sources of information for brand

awareness. This is because newspapers are the cheapest and easily available

means of getting information regarding various brands. Friends/relatives were

considered as important source may be because, the respondents easily get

information through word of mouth from their friends / relatives.

Radio was the least preferred media for brand awareness of all these four

products (i.e., Biscuits, Chips, Fruit juice and Ice creams).

The study conducted by Yee and Young (2001) on food industry

awareness of the high fat content of pies show that the major sources of brand

awareness were word of mouth followed by advertisements, family members and

relatives and friends.

5.2 PURCHASE BEHAVIOURS OF CONSUMERS

5.2.1 Buyers and non-buyers of ready-to-eat food products

From Table 4.7 it was observed that biscuits were consumed by all the

respondents. All the respondents of AG1, AG2, AG3 and AG4 consumed

biscuits. This clearly indicates that all categories of respondents preferred to

purchase biscuits irrespective of their age. The respondents expressed that it was

a most convenient food and can also be used at any time and any where.

Chips were mostly preferred among AG1 and AG2 respondents (100.00%

and 98.18% respectively) as these products were generally fun eat products.

Younger generations are more driven away by fried foods. All the respondents of

AG4 were not consuming chips because they were conscious of health. As chips

are fried foods and such foods are not preferred by the aged groups because they

are not interested in such foods. Such foods are also not digestible in case of

Page 140: Summer project report

elder people. The health disorders like blood pressure, sugar and cardial

malfunctioning prompt them to avoid oily food materials.

All the respondents of AG1 purchased fruit juice for consumption

because of taste, 100.00 per cent of the respondents of AG4 did not purchase

fruit juice for consumption, because majority of them preferred home made

products since it involves low cost of preparation.

About 96.87 per cent, 98.18 and cent per cent of the respondents of AG1,

AG2 and AG3 consumed ice creams. Only a meager per cent of the respondents

of AG1 (3.12%) and AG2 (1.81%) did not purchase ice creams for consumption.

Because some of them opined that they had a allergy due to cold so they were

not purchasing ice creams. All the respondents of AG4 were not purchasing ice

creams for consumption because of the reasons discussed earlier.

5.2.2 Reasons for purchasing ready-to-eat food products

It was noticed from the Table 4.8 that the major factors considered while

purchasing biscuits were convenience to use as snacks (65.00%), liking of the

family members (60.00%) and ready availability (53.00%). Taste was the main

reason for purchasing chips, fruit juice and ice creams by 80.43 per cent, 59.13

per cent and 61.70 per cent respectively. These results are being supported by the

study (Palkar, 2004) wherein, consumers opined that taste or time pass was the

most important reason for purchasing chips. When it comes for liking of the

product, the major strata of population which purchase the ready-to-eat product

was the first age group i.e., children. They were also influenced by friends. The

demonstration effect works more in case of children to like the ready-to-eat food

products.

5.2.3 Reasons for not purchasing ready-to-eat food products

Page 141: Summer project report

It was revealed from the Table 4.9 that, health consciousness was the cent

per cent of the reason for not purchasing chips. About 62.50 per cent of the

respondents did not purchase chips due to low quality of the product and 50.00

per cent each of them did not purchase because they disliked chips and due to

high price. Majority of the respondents (85.71%) did not purchase fruit juice

because they preferred home made products. The other reasons for not

purchasing fruit juice were high price (71.42%), dislike towards the product

(42.85%) and only 28.57 per cent of them did not purchase because of low

quality of the product. In case of ice creams, cent per cent of the respondents did

not purchase because

Page 142: Summer project report

they disliked the product, 66.66 per cent of them were not purchasing this

product since they were health conscious and 33.33 per cent of the respondents

said other reasons like allergy due to cold. Seventeen per cent of each of the

respondents were not purchasing ice creams due to high price and low quality of

the product.

The study of reasons for not purchasing ready-to-eat food products

revealed that the cosmopolitan people of Hubli-Dharwad were more of health

conscious and quality conscious. Price was not an important criteria to purchase

the products as only 50.00 per cent of the respondents thought about the price

while making purchases. Hence, this sort of studies send red alert to the ready-to-

eat food manufacturers, that they cannot compromise on quality of the products

in a view to offer the products at cheaper price.

5.2.4 Monthly expenditure of households on food items

It could be seen from the Table 4.10 that, there exist a positive

relationship between household’s monthly expenditure and monthly income. As

the monthly income increases, the households monthly expenditure also

increased and the same trend was noticed in the case of ready-to-eat food

products also. These results coincide with the results obtained by the Kubendran

and Vanniarajan (2005) while studying the change in consumption pattern due to

changes in food habits. They found that if income and urbanization increases

among consumers, the percentage of income spent on consumption increases.

The amount spent on ready-to-eat food products was found to be highest in case

of high income group (Rs. 423.07) followed by middle income group (Rs.

298.52) and low income group (Rs.224.00). Similar trend was noticed with

respect to total monthly expenditure, wherein the expenditure was Rs. 2747.60 in

high income group, Rs. 2331.35 in middle income group and Rs. 1566.00 in low

income group.

Page 143: Summer project report

High income group people are usually double salaried where in both

husband and wife work outside. Obviously they will have less time to prepared

food in the house. Hence, they have to necessarily go for ready-to-eat food

products from outside. Even in the business class also people find less time to

prepare the food at home.

5.2.5 Monthly expenditure of households on ready-to-eat food products

It could be seen from the Table 4.11 that the average monthly expenditure

on biscuits, chips, fruit juice and ice creams increased as income increased. High

income group spent Rs. 128.38 on biscuits followed by middle income group

(Rs. 82.94) and low income group (Rs. 60.70). Similar trend was noticed with

respect to other products like chips, fruit juice and ice creams. On an average

Hubli and Dharwad consumers spend Rs. 85.86 on biscuits, Rs. 41.75 on chips,

Rs. 57.80 on fruit juice and Rs. 58.70 on ice creams out of their monthly

expenditure on ready-to-eat food products.

In percentage terms, biscuits found the prominent place in the total

consumption basket of ready-to-eat food products of Hubli-Dharwad consumers.

Biscuit is such a food product which is liked by all age groups and all sections of

the society. Usually, it is a tea time snack in almost every household. It cannot be

a surprise if people spend more on biscuits in their monthly consumption outlay.

Ice creams and fruit juice are the delicacy of lower age groups. The craze of cold

materials like ice creams and juice are very high among children and teens.

Hence, sizeable proportion of monthly expenditure would also go towards these

items.

5.2.6 Frequency and place of purchase

Table 4.12 depicts that frequency and place of purchase by the

respondent. It could be observed from the table that, majority of the respondents

Page 144: Summer project report

purchased biscuits twice in a week from bakeries and departmental stores

(70.58% each) and 41.17 per cent of them purchased from retail outlets. The

frequency of purchase of biscuits was more as compared to other ready-to-eat

food products because of the reasons already known. But the point is why they

do not purchase the requirement at a time. Probably, the people want to use the

fresh installment of the biscuits to enjoy its crispy nature, the stored biscuits

loose that.

Most of the respondents purchased chips, fruit juice and ice creams

whenever needed. These products are generally fun eat and also these are

impulse purchase products. Majority of the respondents purchased chips from

bakeries (77.77%) followed by departmental stores (29.62%) and only 24.07 per

cent of the respondents purchased from retail outlets. Even in case of fruit juice

maximum of the respondents purchased from bakeries (50.87%) and a least per

cent of the respondents purchased from retail outlets (22.80%). Even in case of

ice creams, very few (4.91%) of the respondents purchased from retail outlets. It

is not the source, but the availability of these products in the sources which had

significantly influenced the purchase behaviour of the consumers. Usually

bakery people will have their own refrigerators to maintain bakery items. Along

with that they keep fruit juice and ice creams. But retail provision stores have to

make special provision to keep such items for sale.

Page 145: Summer project report

5.2.7 Nature of purchase decision

Nature of purchase decision among different age groups, is presented in

Table 4.13. Among the total respondents majority of them planned and

purchased biscuits and fruit juices (65.00% and 55.91% respectively) and

remaining 35.00 per cent of biscuit purchasers and 44.08 per cent of fruits juice

purchasers did impulsive buying. In case of other products like chips and ice

creams, maximum of the respondents (73.91% and 51.06% respectively) did go

for impulsive buying. These results further support our earlier findings that

biscuits are the common man tea time snack. Hence, they always find a place in

the purchase list of the consumers. But chips and ice creams are generally

impulse purchase products. Especially younger generations are more attracted by

these products. The children, when they are out with elders usually demand for

these products whenever they see the shops displaying them. The same thing was

reflected in the study also, as the higher age people did not go for impulsive

buying of chips and fruit juice.

5.2.8 Influence of income on purchase decisions on ready-to-eat food

products

Table 4.14 reveals that influence of income on purchase decisions on

ready-to-eat food products. It was observed from the table that majority of the

respondents took self decision while purchasing biscuits (77.50%, 58.82% and

61.53% of low, middle and high income groups respectively), chips (58.66%,

74.19% and 59.57% respectively) and fruit juice (57.14%, 75.57% and 72.00%

receptively). In case of ice creams majority of the respondents of low (66.00%)

and high income (72.00%) groups took self decision while purchasing ice

creams. This is because the purchasers have more faith and belief among

themselves. Among middle income group, maximum of the respondents were

influenced by friends (55.88%) while taking purchase decision on ice creams.

Page 146: Summer project report

5.2.9 Influence/Impact of education to make purchase decision on ready-

to-eat food products

Education is one of the important factors that influence the purchase

decisions. From Table 4.15 it was observed that in the case of biscuits, fruit juice

and ice creams most of the degree and post graduate level respondents took self

decision while purchasing. It clearly shows that the respondents were

independent in taking decisions and their independency may be because of

education i.e,. they will be knowledgeable enough to judge by themselves, what

is good/needed for them. Most of the respondents of primary school level were

influenced by parents while taking purchase decisions on biscuits, chips and fruit

juice.

5.2.10 Preference for type of biscuits

It could be inferred from Table 4.16 that, among the first age group

(AG1) maximum of the respondents preferred sweet biscuits (65.62%) followed

by cream biscuits (50.00%) and salted biscuits (18.75%). None of the

respondents of this age group preferred high fibre content biscuits. Age group

one (AG1) contains the children and teens who always look at the taste rather

than nutritive value of any product. Therefore many of them preferred cream and

sweet biscuits. But as and when the people become old, they give more

weightage to nutritive value of the food rather than the taste. The results of the

study also supports the phenomenon. At the aggregate level, people gave less

importance to nutritive value as compared to taste. Biscuits are mainly consumed

for their taste rather than any nutritive value. Hence, the manufacturers of

biscuits, planning for marketing strategy by attaching nutritive value for their

product have to think seriously before launching the product.

Page 147: Summer project report

5.2.11 Preference for variety of chips

It was observed from Table 4..17 that preference for potato chips was

found to be highest (78.26%) followed by banana chips (51.08%), jack fruit

chips (31.52%) and only 10.86 per cent of them did go for sweet potato chips.

Among the first three age groups potato chips were highly preferred by the

respondents. The next preference was given for banana chips followed by jack

fruit chips and sweet potato chips in case of AG1 and AG2 respondents. Food

habits of the people largely depend upon the availability of the food material in

the locality. Since, potato is being grown in large quantities in Hubli-Dharwad

area, raw material availability is not a problem. Hence, large quantities of potato

chips were prepared and supplied to meet consumers satisfaction. Price is

another factor which influence on the preference of the product. Banana, jack

fruit and sweet potato were to be produced from distant markets, which adds to

cost of production. All these factors would definitely reflect higher prices for the

products in the market. Therefore, cheapest among all varieties of chips, the

potato chips were much preferred by the consumers of all age groups.

5.2.12 Preference for flavour in chips

It was revealed from the Table 4.18 that among the first two age groups

AG1 and AG2 chilly flavoured/masala chips were highly preferred (68.75% and

70.37% respectively). Whereas in case of AG3 salted/plan chips were preferred

by more number of respondents (66.66%). The first two age groups mainly

comprise of children below 20 years. There consumption of chips was mainly

because of taste. Children usually like the masala and tomato flavoured chips and

eat them by relishing the taste in it. While the older age group consumers use

chips as tea time snacks. Therefore, salted or plain chips would be more suited to

this age group people.

5.2.13 Preference for type of fruit juice

Page 148: Summer project report

It was noticed from Table 4.19 that maximum of the respondents

preferred mango juice (61.29%) followed by apple juice and orange juice by

46.23 per cent each of the respondents , 31.18 per cent of them preferred

pineapple juice and strawberry juice was preferred by 13.97 per cent of the

respondents. Majority of the respondents of AG1 and AG3 preferred apple juice

(56.25% and 100.00% respectively). In case of AG2 most of the respondents

preferred mango juice (69.81%). Among the first three age groups strawberry

juice was less preferred. Mango and apple are the most commonly consumed

fruits and inturn their juices are also most preferred because of the taste

acquaintance.

5.2.14 Preference for type of ice creams

It was observed from Table 4.20 that among the first two age groups i.e.,

AG1 and AG2 most of the respondents did go for cone ice creams (77.41% and

75.92% respectively). This was followed by cup ice creams, candy and scoop.

Only a meager per cent of the respondents preferred family packs (1.85%) in

case of AG2. It was also observed from the table that none of the respondents of

AG1 preferred family packs. Among the third age group more than half of the

respondents preferred cone ice creams. Overall, majority of the respondents

preferred cone ice creams (75.53%) followed by cup (39.36%), candy (22.34%),

scoop (20.21%) and family packs were preferred by only few of the respondents

(2.12%). Ice creams are mostly impulsive buying products. People eat and enjoy

them wherever they are because they cannot be carried to longer distances and

kept for longer hours. Hence, individual packs were much preferred to family

packs. Family packs are preferred only during certain occasions when entire

family will involve in some sort of celebrations. But, ice creams are more of pass

time food products. Eat and go would be the usual way which the people follow

in the twin cities. The convenience of the container can also be another factor

which influence on the preference of cone and cup ice creams than scoops, candy

Page 149: Summer project report

and family packs.

5.2.15 Preference for flavour in ice creams

It could be seen from the Table 4.21 that chocolate flavour was highly

preferred among the first age group (70.96%) followed by vanilla (54.83%) and

pista (41.93%) flavours. Younger generations like chocolates very much and

hence they prefer the respective flavour. In case of AG2, maximum of the

respondents preferred vanilla (55.55%) followed by pista (40.74%) and

chocolate flavours (35.18%). The results also revealed that, about 77.77 per

Page 150: Summer project report

cent of the respondents of AG3 preferred vanilla flavour, pista flavour was

preferred by 66.66 per cent of the respondents and chocolate flavour was less

preferred among this age group (22.22%). Overall, maximum of the respondents

preferred vanilla (57.44%) followed by pista (43.61%), chocolate flavour

(44.68%), strawberry and mango flavour by 17.02 per cent each of respondents

and butterscotch was preferred by only 14.89 per cent of the respondents.

5.3 BRAND PREFERENCE OF THE CONSUMERS

5.3.1 Brand preference for biscuits

It could be inferred from Table 4.22 that, Parle-G was the most popular

brand among majority of the respondents. Since it is an age old brand and it is

continuously rendering a very good quality product, it is highly acceptable by the

consumers. In addition, comparatively, the price of this brand is low. In

accordance with this result, Padmanabhan (1999) study on brand loyalty revealed

that only when price of the particular brand is comparatively lower to prices of

other brand in the market the consumers will be brand loyal. The consumers

would naturally prefer to low priced brand and they would naturally continue to

purchase the same brand as long as the price and quality of the brand is

unaltered. Any violation to this would lead to brand switching. Good day and

Marie gold biscuits were also popular among the respondents.

5.3.2 Brand preference for chips

It could be seen from Table 4.23 that, Lays was the most popular brand

among maximum number of respondents. It may be because of its taste, flavour

and quality of the product. Advertisements also play a very crucial role in brand

preference. The product promotional strategies adopted by a producer would also

strengthen the brand preference. Uncle chips and Bingo brands were also most

popular among the respondents.

Page 151: Summer project report

5.3.3 Brand preference for fruit juice

It could be inferred from Table 4.24 that, maximum of the respondents

preferred Maaza brand (mean score of 62.81), followed by Frooti (mean score of

62.61) and Slice (mean score of 56.00). These are the commonly available

brands in the study area. It was found that Tropicana twister brand (mean score

of 35.91) was least preferred among the respondents, as it was a new brand and it

takes time to capture the minds of the people. Another interesting thing to note

here that top three brands in the order of preference had mango as the base

material. The taste acquaintance of the people to mango might have prompted

them to prefer these brands.

5.3.4 Brand preference for ice creams

It was noticed from Table 4.25 that, maximum number of respondents

preferred Amul brand. Amul is one of the well known brands for milk products

in our country. The Amul is known for quality products and hence, it is very

much popular among the consumers all over the country. The promotional

strategies adopted by Amul, Kwality walls and MTR brands might have made

them top three preferred brands. Many a times brand name established in some

other product of the same brand would also influence the brand preference for

the given product. Hangya and Dinshaws were the new brands of ice creams

which had entered into the market very recently. Many people did not know

about the existence of such brands. Hence they were less popular brands of ice

creams among the respondents.

5.4 FACTORS INFLUENCING BRAND PREFERENCE

Table 4.26 presents the factors influencing brand preference. While,

preferring a particular brand in biscuits quality was considered as the foremost

factor (mean score of 75.74). Second factor was taste with a mean score of

74.79. Reasonable price was ranked as third factor (mean score of 64.60). While

Page 152: Summer project report

preferring a particular brand in chips, fruits juice and ice creams taste was

considered as the foremost factor in all the products (mean score of 80.35, 77.29

and 79.05 respectively). Quality was considered as the second factor by the

consumers (mean score of 71.22, 75.23 and 74.18 respectively). Third criteria

considered was reasonable price in all the three products (mean score of 62.46,

62.29 and 64.21 respectively). Similar to this study, the study undertaken by

Sheeja (1998) in Coimbatore district inferred that consumers considered the

quality aspects like aroma, taste, freshness

Page 153: Summer project report

and purity as the major factors deciding the preference for a particular brand of

processed spices. In the same line, the study conducted by Nandagopal and

Chinnaiyan (2003) on brand preference of soft drinks in rural Tamil Nadu

revealed that the product quality followed by retail price were the deciding

factors of brand preference.

The study was conducted on an elite group of respondents, who were the

residents of Hubli-Dharwad city. Quality of the product will definitely be the

prime factor for preference to a brand and price would become secondary for a

elite group.

It does not mean that all other factors like brand image, advertisements,

packing decision, offers etc. would not have any influence on brand preference.

These factors coupled with the above three prime factors would influence the

brand preference.

5.5 ALTERNATIVE PURCHASE PLANS OF READY-TO-EAT FOOD

PRODUCTS

Table 4.27 depicts alternative purchase plans of ready-to-eat food

products. Majority of the respondents in case of biscuits (80.00%), chips

(60.86%), fruit juice (58.06%) and ice creams (56.38%) would go to other shops

if their preferred brand was not available. This was because the consumers were

more loyal to their preferred brands. In case of biscuits and ice creams, 27.00 per

cent and 40.42 per cent of the respondents respectively would postpone their

purchase decision if their preferred brand was not available. This shows the

extent of brand loyalty of the consumers to a particular brand. About 40.21 and

38.70 per cent of the respondents of chips and fruit juice buyers would buy other

brands, if preferred brand was not available. This indicates that consumers try to

resist the postponement of purchase of these two products as these are fun eat

products.

Page 154: Summer project report

6. SUMMARY AND POLICY IMPLICATIONS

India is the world’s second largest producer of food next to China and has

the potential of being biggest industry with food and agricultural sector. Food

accounts for the largest share of consumer spending.

In India, majority of food consumption is still at home. Nevertheless, out

of home food consumption is increasing due to increase in urbanization,

breaking up of the traditional joint family system, desire for quality, time which

translates into an increased need for convenience, increasing number of working

women, rise in per capita income, changing lifestyles and increasing level of

affluence in the middle income group had brought about changes in food habits.

“Ready-to-eat food is food offered or exposed for sale without additional

cooking or preparation, which is packed on the premises where sold and is ready

for consumption”.

Unlike olden days where man used to have his food lavishly and slowly,

the present trend changed the habits of foods, which are simple and easy to

digest. Hence, the existence of these foods fulfilled all the needs of modern

human being. Canned foods, convenience foods, fast foods, frozen foods, dried

foods, preserved foods, etc. all comes under ready-to-eat foods.

Ready-to-eat foods are widely used in catering industries as well as at

homes. There are varieties of ready-to-eat foods available in the market to

choose from. Now-a-days they have become a part of every day life.

As double income nuclear families have become the norm in urban India,

every one who is in the food business has been eyeing on the ready-to-eat food

sector with considerable hunger.

Several firms are engaged in production and marketing of ready-to-eat

Page 155: Summer project report

food products. Hence, the consumers have greater option to choose from. In this

context, a study on consumer behaviour was seemed to be important to

understand the buying behaviour and preferences of different consumers.

Understanding the consumer behaviour would help the firms in formulating

strategies to cater to the needs of the consumer and thereby increase their market

share. Consumer’s taste and preference were found to change rapidly especially

in a dynamic environment. Keeping in view the importance of consumer

behaviour and consumption pattern, an attempt was made to study the buying

behaviour of consumers towards ready-to-eat food products, brand preference of

the consumers, factors influencing brand preference and alternative purchase

plans of the consumers.

The specific objectives of the study were

i. To ascertain the awareness of consumers towards branded ready-to-eat

food products.

ii. To study the purchase behaviour of ready-to-eat food products.

iii. To evaluate brand preference of the consumers.

iv. To study the factors influencing brand preference.

v. To evaluate alternative purchase plans of the consumers.

The study was carried out in the twin city of Hubli and Dharwad.

Hundred sample respondents each for Hubli and Dharwad were selected

randomly and thus the total number of samples aggregated to 200. Required data

were collected from the respondents with the help of pre-structured and pre-

tested schedules through personal interview method. Data was coded, tabulated,

analysed and interpreted using suitable statistical techniques viz., Garrett’s

ranking technique etc.

Page 156: Summer project report

Findings of the study

The important findings of the study are summarized and suitable

conclusions are drawn and presented below.

Maximum number of respondents belonged to age group two (21 years to 40

years). More than half of the respondents were females. Most of the respondents

were degree holders (44.00%). A very few percentage (2.00%) of them had

finished primary school. It was found that among the selected respondents none

of them were illiterates. Maximum number of respondents (44.00%) belonged to

the medium family size of 5-7 members and most of them belonged to nuclear

families (89.00%). The data on food habits revealed that most of them were

vegetarians (73.00%). Most of the respondents (40.00%) belonged to low income

group (<Rs.8615.70/month). As per the occupation classification, 68.00 per cent

of them were students.

The brand awareness of consumers about chips among different age groups

revealed that, most of the respondents were aware of Lays (96.00%), Uncle chips

(83.00%) and Bingo (67.00%) brands. In case of AG1 all the respondents knew

Lays brand. Uncle chips, Bingo, Lays, Haldiram chips and Lehar were familiar

among more than half of AG2 and AG3 respondents. Lays brand was known to

75 per cent of the respondents of AG4. None of the respondents of this age group

were familiar with Haldiram chips, Lip chips, Diamond chips and Lehar chips

Page 157: Summer project report

.

Brand awareness of consumers about fruit juice among different age

groups showed that, Frooti brand was very popular i.e. 96.00 per cent of

respondents were aware, followed by Maaza brand (93.00%) and Slice

(87.00%). Tropicana twister brand was less familiar (44.00%), among the

respondents. All the respondents of AG1 and AG4 were conscious of

Frooti brand. Among AG2, majority of the respondents were familiar with

Frooti and Maaza brands (94.54% each). All the respondents of AG3 were

conscious of Maaza brand. It was also found that Real fresh, Appy,

Tropicana twister and Pulpy orange brands were not known to any of the

respondents of AG4.

Brand awareness of consumers about ice creams among different age

groups showed that, majority of the respondents were aware of Amul

brand (99.00%), followed by Arun, MTR and Nandini brands (66.00%

each). Only a small percentage of the respondents (25.00%) were aware

of Dinshaws brand. All the respondents of AG1, AG2 and AG4 were

aware of Amul brand. In case of AG3 majority of the respondents were

aware of Amul and MTR brands (88.88% each). It was found that more

brands were known to AG1, AG2 and AG3 respondents as compared to

AG4 respondents. None of the respondents of AG4 were conscious of

MTR, Nandini, Kwality walls, Hangya and Dinshaws brands.

Influence of media to create awareness about the brands in the study area

showed

that, in case of biscuits television was the major source for getting

information about the brands (92.00%). This was followed by newspapers

(66.00%) and friends/relatives (51.00%). In case of other products i.e.,

Page 158: Summer project report

chips, fruit juice and ice creams, majority of the respondents were

influenced by television (93.00%, 86.00% and 81.00% respectively).

Radio was the least preferred media for brand awareness of all the four

products. Overall, television was preferred as the major source of

information for brand awareness (26.13%) followed by newspapers and

friends/relatives (17.89% and 17.52% respectively). Only a meager

percentage of the respondents were influenced by radio (4.08%).

.All the respondents did not purchase chips since they were health

conscious. The other reasons for not consuming chips were low quality of

the product (62.50%), dislike towards the product and high price (50.00%

each). In case of fruit juice, majority of the respondents (85.71%) were

not purchasing this product because they preferred home made products.

High price (71.42%) was the other important reason for not purchasing

fruit juice. In case of ice creams all the respondents did not purchase

because they disliked the product. More than half of the respondents said

they were not consuming ice creams because they were health conscious.

The average monthly expenditure on ready-to-eat food products was

found to be highest in the case of high income group (Rs. 423.07)

followed by middle income group (Rs. 298.52) and low income group

(Rs. 224.00).

It was inferred that majority of the respondents purchased biscuits twice

in a week from bakeries and departmental stores (70.58% each). Most of

the respondents purchased chips, fruit juice and ice creams whenever

needed. Maximum number of respondents purchased chips and fruit juice

from bakeries (77.77% and 50.87% respectively). Ice creams were mostly

purchased in ice parlours (96.72%).

In case of biscuits and fruit juice, majority of the respondents did go for

Page 159: Summer project report

planned purchase (65.00% and 55.91% respectively). But in case of chips

and ice creams majority of the respondents did impulsive buying (73.91%

and 51.06% respectively).

Influence of income on purchase decisions on ready-to-eat food products

showed that, in case of biscuits, chips and fruit juice majority of the

respondents of all the three income groups took their own decision while

purchasing the products. In case of ice creams, majority of the

respondents of low and high income groups took self decision. In the

middle income group, maximum of the respondents were influenced by

friends while taking purchase decision on ice creams.

Influence/impact of education to make purchase decision on ready-

to-eat food products showed that, in case of biscuits, fruit juice and ice

creams most of the degree and post graduate level respondents took their

own decision while purchasing. It clearly shows that education level of

the respondents has prompted them to take independent decision.

It was inferred that maximum number of respondents preferred sweet

biscuits (52.00%) followed by cream biscuits (51.00%) and salted biscuits

(36.00%).

It was found that preference for potato chips was found to be highest

in case of all the three age groups. Banana chips (51.08%) and jack

fruit chips (31.52%) were also highly preferred among the

respondents.

Chilly flavoured/masala chips (69.56%) were mostly preferred among the

respondents followed by tomato flavoured chips (48.91%) and salted /

plain chips (41.30%).

Page 160: Summer project report

Mango juice (61.29%), apple juice and orange juice (46.23% each) were

mostly preferred juices among the respondents.

Majority of the respondents preferred cone ice creams (75.53%)

followed by cup (39.36%) and candy (22.34%) ice creams, family

packs were least preferred among the respondents (2.12%). It was

found that none of the respondents of AG1 preferred family packs.

Maximum number of respondents preferred vanilla flavour (57.44%)

followed by pista flavour (43.61%) and chocolate flavour (44.68%).

Chocolate flavour was highly preferred in case of first age group

respondents (70.96%).

In the case of biscuits, Parle-G, Good day and Marie gold biscuits

were highly preferred brands among the respondents. Most of the

respondents preferred Lays, Uncle chips and Bingo brands in the case

of chips. In case of fruit juice Maaza, Frooti and Slice were highly

preferred brands. In case of ice creams majority of the respondents

preferred Amula brand followed by Kwality walls and MTR.

The factors that influenced brand preference of biscuits were quality,

taste and reasonable price. In case of chips, fruit juice and ice creams

the major factors influenced brand preference were taste, quality and

reasonable price.

Maximum number of respondents in case of all the four products would go to

other shops if preferred brand was not available

Page 161: Summer project report

.

POLICY IMPLICATIONS

1. Majority of the residents in Hubli-Dharwad city purchased these ready-to-

eat products viz., biscuits, chips, fruit juice and ice creams. This indicates

that there is a wide scope for all the intermediaries who are involved in

this business. Since all these product manufacturing firms come under

small and medium enterprises, there is encouragement from government

side also. Since, Hubli-Dharwad is a fast growing twin city, there is ample

scope for this type of business.

2. Ready-to-eat food products are impulse purchase products and generally

fun eat foods. Consumer buys such products only if it catches his eye at

the outlet. So players/manufacturers need to stress on attractive packaging

and sales promotion. Further, study also indicated that those firms which

resorted to advertisements through mass media, particularly television and

newspapers could get better share in the market. This calls for the

attention of other competing firms in the business to improve their sales

promotion activities by making use of such mass media to improve their

business.

3. The cosmopolitan people of Hubli-Dharwad were found more health and

quality conscious while choosing a ready-to-eat food product. Price was

less important to them. This sends a message to the manufacturers of

ready-to-eat food products, that they cannot compromise on quality of the

products in view to offer the products at cheaper prices, particularly to

such cosmopolitan consumers.

4. Ready-to-eat food products are impulse purchase and fun eat products.

Page 162: Summer project report

Lower age groups, particularly children and teens consume them the most.

Taste and other organoleptic quality aspects count more while preparation

of the products. Hence, manufacturers, planning for marketing strategy by

attaching nutritive value for the products have to think seriously before

launching such products.

5. Brand loyalty is an important factor in such ready-to-eat food products. It

is very difficult to induce the consumers for brand switching. Any new

firm entering into the market should study these things very critically. The

quality aspects coupled with competitive price may lead to change of

brands. The innovative firms should keep these points in mind while

entering into such type of business.

6. Study of alternative purchase plans of ready-to-eat food products

suggested that majority of the residents of Hubli-Dharwad are brand loyal

as they either go to other shops in search of the particular brand or they

postpone their purchases until they get their required brands. Hence,

supply chain management of the popular brands should be such that the

product of these brands should be readily available in all the retail outlets.

Page 163: Summer project report

7. REFERENCES

Books

Aaker David, 2000, Building strong brands. The Free Press, New York.

Magazine & Journals/ Newspaper

Ali, M., 1992, An analysis of fruits and vegetable processing, a

comparative study of private and public sector units. .

Apporva, Palkar, 2004, Consumer preference in purchase of ready-to-eat

snacks – Branded potato chips. Ind. J. Mktg, 34 (9) : 34-38.

Balaji, V., 1985, Fish consumption : A case of fish consumption

behaviour in Vishakapatnam. Ind. J. Mktg., 14 (2) : 15-18.

Banumathy, S. and Hemamena, M., 2006, Analysis of brand preference

of soft drinks in the global environment. Ind. J. Mktg., 36 (6) : 12-16..

Hugar, L.B., Shivaraya, B. and Verriswamy, J., 2001, Dynamics of

consumer behaviour in vegetable marketing. Ind. J. Mktg, 31 : 27-33.

Jorin, R., 1987, Consumer behaviour is changing and offering new

opportunities. Berater-Information, 26 (9) : 8-14.

Page 164: Summer project report

Joshi, M.S., 1993, Food purchase habits and consumer awareness of rural

and urban housewives in Dharwad. MHSc. Thesis, Univ. Agric. Sci,

Dharwad.

Kamalaveni, D. and Nirmala, 2000, Consumer behaviour in instant food

products. Ind. J. Mktg, 30 (5-7) : 12-18.

Kubendran, V. and Vanniarajan, T., 2005, Comparative analysis of rural

and urban consumers on milk consumption. Ind. J. Mktg, 35 (12) : 27-30.

Kulkarni, M.S. and Murali, D., 1996, Study on purchasing practices of

consumers of Parbhani Town. Ind. J. Mktg, 26 : 3-7.

Kumar, K., Ambarish, Jordan, B.B. and Barker Tansu, A., 1987, Made in

India, what it means to Indian consumers ? Ind. J. Mktg, 17 (9) : 26-34.

Low, G. and Lamb, J., 2000, The measurement and dimensionality of the

brand associations.

Nandagopal, R. and Chinnaiyan, P., 2003, Brand preference of soft

drinks in rural Tamil Nadu. Ind. J. Mktg, 33 (1) : 14-17.

Page 165: Summer project report

Narang, R., 2006, A study on branded foods. Ind. J. Mtking, 36 (11) : 3-9.

Padmanaban, N.R. and Sankaranarayanan, K., 1999, Business

experience, product lines of dealers and farmers loyalty to dealer for

pesticides in southern Tamil Nadu. Ind. J. Agric. Mktg, 13 (3) : 69-74.

Prell, H., Berg, C. and Jonsson, L., 2002, Why don’t adolescents eat fish

Puri, R. and Sanghera, J., 1989, Nutritive value and consumption pattern

of some processed foods. Ind. J. Mktg, 46 (6) : 24-27.

Ragavan, R., 1994, A study on the consumer response towards franchise

vegetable outlets – A case of just picked. M.Sc. (Agri.) Thesis, Tamil

Nadu Agric. Univ., Coimbatore.

Raj Reddy, D. and Pruthviraju, 1999, Rural consumer behaviour for

seeds – A case study. Ind. J. Agric. Mktg., 29 (7-10) : 28-33.

Ramasamy, K., Kalaivanan, G. and Sukumar, S., 2005, Consumer

behaviour towards instant food products. Ind. J. Mktg., 24 (2-3) : 55-59.

Rees, A.M., 1992, Factors influencing consumer choice. J. Soc. of Dairy

Tech., 45 (4) : 112-116

Page 166: Summer project report

Sampathkumar, 2003, Brand preferences acidity of soft drink market. J.

Agric. Mktg, 23 (2) : 64-67.

Sanjaya, S. Gaur and Abdul K. Waheed, 2002, Study of buying

behaviour of branded fine rice. Ind. J. Mktg, 32 (7) : 3-8.

Sarwade, W.K., 2002, Emerging dimensions of buyer behaviour in rural

area. Ind. J. Mktg, 32 (1-2) : 13-19.

Sayulu, K. and Ramana Reddy, V.V., 1998, Socio-economic influences

of rural consumer behaviour – An empirical study. Ind. J. Mktg, 28 : 8-

21..

Srinivasan, N. and Elangovan, D., 2000, Consumer perception towards

processed fruits and vegetable products. Ind. J. Mktg, 30 (11-12) : 22-25.

Vincent, N., 2006, A study on brand consciousness among children and

its effect on family buying behaviour in Bangalore city. Ind. J. Mktg, 36

(1) : 12-1

Page 167: Summer project report

Websites

www.tata.com

National Sample Survey Organisation, Government of India.

www.Indiatelevision.com March 10, 2007

Budget.2007.

Page 168: Summer project report

APPENDIX – I

INTERVIEW SCHEDULE

“CONSUMER BEHAVOUR TOWARDS READY TO-EAT-FOOD

PRODUCTS”

QUESTIONNAIRE FOR CONSUMERS

I. General Information

1. Name of the respondent :

2. Address :

3. Age :

4. Sex

5. Education : Illiterate/Primary/High/PUC/Degree/PG

6. Occupation :

7. City : Dharwad/Hubli

8. Name of the shop :

9. Monthly income (Rs.) :

10. Food habit : Vegetarians/Non vegetarians

11. Type of family : Joint/Nuclear

12. Family :

Family members Number

Adult males

Adult females

Children

Page 169: Summer project report

Total

Page 170: Summer project report

13. Monthly expenditure on food items

Items Expenditures (Amount in Rs.)

Cereals

Pulses

Fats and oils

Fruits and vegetables

Milk and milk products

Ready to eat food products

Total

14. Monthly expenditure on ready-to-eat foods

Ready-to-eat products Expenditure (Amount in Rs.)

Page 171: Summer project report

Biscuits

Chips

Fruit juice

Ice creams

Page 172: Summer project report

II. Specific Information

1. Do you purchase ready-to-eat food products ? Yes/No. 2. What are the

reasons for purchasing ready-to-eat food products ?

Reasons Biscuits Chips Fruit juice Ice creams

Ready available

Taste

Liked by the family members

Influence of friends of relatives

Easily available in the shops

Convenient to use for snacks

Satisfaction

Save time of preparation

Any other

3. What are the reasons for not purchasing ready-to-eat food products ?

Reasons Biscuits Chips Fruit juice Ice creams

Lack of awareness of products

available in the market

Dislike the product

High price

Page 173: Summer project report

Low quality

Not available in the shops

Health conscious

Any other

Page 174: Summer project report

4. Are you aware of the following brands ?

Biscuits Yes No

Parle-G

Tiger biscuits

Marie gold

Britannia 50-50

Sunfeast snacky

Sunfeast glucose

Good day

Krack jack

Hide and seek

Glucose

Chocolate chip cookies

Britannia Time pass

Parle Monaco

Britannia little hearts

Chips

Uncle chips

Bingo

Lays

Haldiram chips

Lip chips

Diamond chips

Lehar

Fruit juice

Real fresh

Frooti

Appy

Maaza

Tropicana twister

Pulpy orange

Slice

Ice creams

Amul

Page 175: Summer project report

Arun

MTR

Nandini

Kwality walls

Hangya

Vadilal

Dairy day

Dinshaws

Page 176: Summer project report

5. Source of information for brand awareness

Source Biscuits Chips Fruit juice Ice creams

Television

Radio

Newspapers

Magazines

Friends/relatives

Shopkeeper/retailer

Window display

Any other

6. Frequency of purchase

Frequency Biscuits Chips Fruit juice Ice creams

Daily

Twice in a week

Once in a week

Fortnightly

Whenever needed

Page 177: Summer project report

7. Nature of purchase decision

Nature of purchase decision Biscuits Chips Fruit juice Ice creams

a. Impulsive buying

b. Planned purchase

8. Place of purchase

Place Biscuits Chips Fruit juice Ice creams

Retail outlets

Departmental stores

Bakeries

Ice parlors

Page 178: Summer project report

9. Influencers of purchase decision

Influencers Biscuits Chips Fruit juice Ice creams

Parents

Children

Friends

Neighbours

Shopkeeper

Self decision

10. Which type of biscuits do you prefer most ?

a. Cream biscuits

b. Wafers

c. Salted biscuits

d. Sweet biscuits

e. High fibre content biscuits

f. Any other (specify)

11. Which type of chips do you prefer most ?

a. Salted/plain

b. Tomato flavoured

Page 179: Summer project report

c. Chilly flavoured/Masala

d. Any other (specify)

12. Which variety of chips do you prefer most ?

a. Banana chips

b. Potato chips

c. Sweet potato chips

d. Jack fruit chips

e. Any other (specify)

13. Which type of fruit juice do you prefer most ?

a. Mango

b. Apple

c. Orange

d. Strawberry

e. Pineapple

f. Any other (specify)

Page 180: Summer project report

14. Which type of ice creams do you prefer most ?

a. Cone

b. Cup

c. Scoop

d. Candy

e. Any other (specify)

15. Which flavour do you prefer in ice creams ?

a. Vanilla

b. Strawberry

c. Chocolate

d. Mango

e. Pista

f. Any other

Page 181: Summer project report

16. Which brands do you prefer most ?

Biscuits Ranks

Parle-G

Tiger biscuits

Marie gold

Britannia 50-50

Sunfeast snacky

Sunfeast glucose

Good day

Krack jack

Hide and seek

Glucose

Chocolate chip cookies

Britannia Time pass

Parle Monaco

Britannia little hearts

Chips

Uncle chips

Bingo

Lays

Haldiram chips

Lip chips

Diamond chips

Lehar

Local brand/unbranded chips

Fruit juice

Real fresh

Frooti

Appy

Maaza

Tropicana twister

Pulpy orange

Slice

Ice creams

Page 182: Summer project report

Amul

Arun

MTR

Nandini

Kwality walls

Hangya

Vadilal

Dairy day

Dinshaws

Page 183: Summer project report

17. What are the factors influencing to prefer a particular brand ? (Give rankings)

Biscuits Chips Fruits juice Ice creams

Reasonable price

Taste

Quality

Quantity

Brand image

Availability

Advertisements

Packaging design

Friends

Labeling

Offers

Freshness

Retailers influence

Long shelf life of the products

Availability of range products

18. What are the alternative purchase plans, if preferred brand is not available ?

Page 184: Summer project report

Alternative purchase plans Biscuits Chips Fruits juice Ice creams

a. Go to other shop

b. Postpone the purchase

c. Will buy other brand

d. Place order to get

required brand

e. Any other

Page 185: Summer project report

CONSUMER BEHAVIOUR TOWARDS READY-TO-EAT

FOOD PRODUCTS

ABSTRACT

The present investigation made an attempt to analyze the buying behaviour of

ready-to-eat food products by consumers of Hubli and Dharwad. A total sample of 200

respondents was selected for the study.

Majority of the respondents were aware of Parle-G, Lays, Frooti and Amul brands

in case of biscuits, chips fruit juice and ice creams accordingly. Television was the major

source for getting information about various brands in all the four products.

Biscuits were consumed by all the respondents because of their convenience to use as

snacks. About 92 per cent, 93 per cent and 94 per cent of the respondents consumed

chips, fruit juice and ice creams respectively. Taste was the main driving force for

purchase of chips, fruit juice and ice creams. Health consciousness was the main factor

for not purchasing chips among the respondents. Majority of the respondents were not

purchasing fruit juice because they preferred home made products. Dislike towards the

product was the main reason for not purchasing ice creams. The average monthly

expenditure on ready-to-eat food products was found to be highest in case of high income

group. Planned purchase was common among majority of the respondents for biscuits

and fruit juice. However, most of the respondents did impulsive buying for chips and ice

creams.

Parle-G, Lays, Maaza and Amul brands were highly preferred brands of biscuits, chips,

fruit juice and ice creams respectively. The main factors influencing brand preference for

biscuits, chips, fruit juice and ice creams were quality, taste and reasonable price. Most of

the respondents would go to other shops if preferred brand in all the four products was

not available. Thus, the study revealed that the younger generation preferred more ready-

to-eat food products than the other age groups. The consumer behaviour also varies from

Page 186: Summer project report

product to product.