CONSUMER BEHAVIOUR TOWARDS THE NEW BRAND IN THE FOOD INDUSTRY MARKET-THROUGH SURYA FOOD AND AGRO PVT

LTD, HYDERABAD

CONTENTS
CHAPTER LIST OF TABLES LIST OF CHARTS INTRODUCTION I PROFILE OF THE COMPANY NEED FOR THE STUDY II III IV V REVIEW OF LITERATURE OBJECTIVES OF THE STUDY RESEARCH METHODOLOGY 1 2 9 10 17 18 22 TITLES PAGE NO.

DATA ANALYSIS AND INTERPRETATION

FINDINGS OF THE STUDY, SUGGESTION AND RECOMMENDATIONS

VI

37 38 39

VII

CONCLUSION

VIII

LIMITATIONS OF THE STUDY SCOPE FOR THE FUTHER STUDY APPENDICES ANNEXURE-1 ANNEXURE-2

40 41

42 44

LIST OF TABLES

TABLE NO. 5.1.1 5.1.2 5.1.3 5.1.4 5.1.5 5.1.6 5.1.7 5.1.8 5.1.9 5.1.10 5.1.11 5.1.12 5.1.13 5.2.1

NAME OF THE TABLE

PAGE NO. 22 23 24 25 26 27 28 29 30 31 32 33 34 35

PRIYA GOLD BISCUITS CONSUMED CONSUMPTION PRIYA GOLD BISCUITS UNDER SEX CONSUMPTION BASED ON OCCUPATION CONSUMED BASED ON OCCUPATION SELECTING BRAND TRUE CONSUMED BASED ON AGE NO. OF TRUE BISCUIT CONSUMED TRUE BISCUIT KNOWN FROM TRUE BISCUIT BASED ON PRICE ALTERNATIVE TRUE BISCUIT CONSUMED UNDER NO. OF FLAVOR SUGGESTION LEVEL OF SATISFACTION

LIST OF CHARTS

CHART NO. 5.1.1 5.1.3 5.1.5 5.1.8 5.1.9 5.1.10 5.1.11 5.1.12 5.1.13 5.2.1

NAME OF THE CHART PRIYA GOLD BISCUITS CONSUMED CONSUMPTION BASED ON OCCUPATION SELECTING BRAND TRUE BISCUIT KNOWN FROM TRUE BISCUIT BASED ON PRICE ALTERNATIVE TRUE BISCUIT CONSUMED UNDER NO. OF FLAVOR SUGGESTION LEVEL OF SATISFACTION

PAGE NO 22 24 26 29 30 31 32 33 34 36

CHAPTER-I
INTRODUCTION
The term consumer behavior is defined as the behavior that consumers display in searching for purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. Consumer behavior focuses on how individuals make decisions to spend their available resources (time, money, effort) on consumption related items. That includes what they buy, why they buy, when they buy it, where they buy it, how often they buy it for purchase and the impact of such evaluations on future purchases, and how they dispose of it.

Consumer behaviour is the study of how people buy, what they buy, when they buy and why they buy. It blends elements from psychology, sociology, socio psychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. The process of consumption has long been associated with sex and gender, thus, it comes as no surprise that consumer researchers often examine the effects of these variables on consumer behaviors. It also comes as no surprise that much is known about sex and gender and how they impact buying and consuming activities. Yet there is one gender-related variable, gender identity that has both intrigued and perplexed consumer behavior researchers for over four decades

NEED FOR STUDY A study of consumer behavior in SURYA FOODS AND AGRO PVT LTD (Priya Gold Biscuits) for special purpose of to know about the consumer behavior for improve the product and marketing function for consumer satisfaction. To know about how many people to get awareness of Priya Gold Biscuits. To find the competitors and analyze the methods for competiting in the market. To find the choice and which flavor is very well moving in market To find the Market Segment Priya Gold Biscuits To find the reasons for not willing to buy Priya Gold Biscuits

SCOPE OF THE STUDY

The project throws on the need for learning buying behavior for successfully marketing.

The project was developed based on benefits of sales towards organization. It will be helpful for the management to identify the needs and benefits of the consumer and to take decision to promote the marketing.

This project can be base for the students who are doing the project in the related area and to the organization in viewing the worth of the consumer and attitude of the buying decision making.

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE

To analyze the behavior of consumer towards the Priya Gold Biscuits.

SECONDARY OBJECTIVES

To find the awareness of people about Priya Gold Biscuits.

To analyze the various parameters that determines the choice of Consumer in Priya Gold Biscuits.

To offer suggestions to the Priya Gold Biscuits to improve its activities.

LIMITATIONS OF STUDY

The project area is Hyderabad only and Taking survey and also difficult in to find the Priya gold biscuits consumers. Research has been done only to limited consumer so has to be expand One of the important limitation is consumer behavior is changed according to their mind setting.

RESEARCH METHODOLOGY
RESEARCH Research in common place refers to a search for knowledge. Research is defined as systematic and scientific search for pertinent information on specific topic or area of study.

METHODOLOGY Methodology is a plan of action for a research project and explains in detail how data are collected analyzed and presented, so that they will provide meaning information.

RESEARCH DESIGN A Research design is purely and simply the framework or plan for the guides the collection and analysis of data. It is the overall operational pattern or framework of the project that stipulated the information to be collected, from which source and what procedures. A Research design might be described as a series of advance decision that taken together from a specific master plan or the model for the conduct of the investigation. Descriptive research is used in this project.

DESCRIPTIVE RESEARCH This type of research design is undertaken in many circumstances. When the researcher is interested in knowing the characteristics of certain groups such as age, sex, education level, Occupation or income etc. The Objective of such study is to answer the Who, What, When, Where, and How of the subject under investigation, so in this project study comes under descriptive research design. RESEARCH INSTRUMENT USED The questionnaire was found to be the most suitable type of research instrument to collect data. It is important tool of the research; it is used to generate the raw data on which findings were based. QUESTIONNAIRE CONSTRUCTION A questionnaire is an assembly of carefully formulated questions, designed to collect facts and options from the respondents. Its an important tool of the research; it is used to generate the raw data on which findings were based.

AIM OF THE QUESTIONNAIRE To obtain accurate data. To make interview as interesting and stimulating. To be easily analysis. To facilitate efficient administration of information. SOURCE AND COLLECTION OF DATA The task of data collection begins after research problems have been defined and research design chalked out. Data is the foundation for all marketing research. The researchers can obtain data form.

Primary Data Questionnaires are prepared and personal interview was conducted. Most of the questions are consist of multiple choices. The structured interview method was undertaken. The interview was conducted in English as well as in Telugu. Proper care was taken to frame the interview schedule in such a manner it should be easily understood in view of educational level of the consumers. Generally 22 questions are prepared and asked to the consumers of the in the Hyderabad. Secondary Data Secondary data was collected from Internets, various books, Journals, and Company Records.
SAMPLING PLAN Due to cost and time involved in collecting the data from all the respondents, it becomes a compulsion to choose representation. Sampling plan explains as under,

Sampling Unit: The sampling unit is who is to be surveyed? That is sampling unit is who are

all the respondent is called sampling unit. The sampling units for this study are customers of Hyderabad.

Sampling Size: The sample size for this study is 100.

Sampling Method: Different types of sampling methods are available. In this study the convenience sampling was selected for this research. This sampling method used the principles of non-probability technique.

Area Of Sampling: The area of sampling was taken in Hyderabad.

STATISTICAL TOOLS To arrange and interpret the collected data the following statistical tools were used. Percentage Method. Weighted Average Method. Correlation Regression

INDUSTRY PROFILE
Biscuit industry contribute Rs 8,000 crore to the FMCG industry and provide a vast opportunity for growth, as the per capita consumption of biscuits is less than 2.1 kg in our country. India It is classified under two sectors: organized and unorganized. Branded /Organized to Unbranded/Un organized market share of biscuit has been 70% for organized sector and 30% for unorganized sector. Apart from Big 3(Britannia, Parle, ITC ) there are around 150 medium to small biscuit factory in India .

The Industry is now facing problem from increase of raw material price. With Government VAT up to 12.5% has added to their woes .Biscuit consumption per capita in India has grown to 2.1kg per capita in comparison to 10kg per capita consumption in USA ,UK and Europe .

India Biscuits Industry came into limelight and started gaining a sound status in the bakery industry in the later part of 20th century when the urbanized society called for readymade food products at a tenable cost. Biscuits were assumed as sick-man's diet in earlier days. Now, it has become one of the most loved fast food products for every age group.

Biscuits are easy to carry, tasty to eat, cholesterol free and reasonable at cost. States that have the larger intake of biscuits are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and West Bengal, the most industrially developed states, hold the maximum amount of consumption of biscuits.

Even, the rural sector consumes around 55 percent of the biscuits in the bakery products. The total production of bakery products have risen from 5.19 lakh tonnes in 1975 to 18.95 lakh tones in 1990. Biscuits contributes to over 33 percent of the total production of bakery and above 79 percent of the biscuits are manufactured by the small scale sector of bakery industry comprising both factory and non-factory units.

The production capacity of wafer biscuits is 60 MT and the cost is Rs.56,78,400 with a motive power of 25 K.W. Indian biscuit industry has occupied around 55-60 percent of the entire bakery production. Few years back, large scale bakery manufacturers like cadbury, nestle, and brooke bond tried to trade in the biscuit industry but couldn't hit the market because of the local companies that produced only biscuits.

The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright future of India Biscuits Industry. According to FBMI, a steady growth of 15 percent per annum in the next 10 years will be achieved by the biscuit industry of India. Besides, the export of biscuits will also surpass the target and hit the global market successfully.

Two Sectors of Biscuit Industry In terms of volume biscuit production by the organized segment is estimated at 1.30 million tones. In the organized sector, the industry is dominated by Britannia and Parle, which account for 70 per cent of the industry's volumes. The two major organized players are Britannia and Parle. Britannias market share stands at Rs 27 billion. Parle derives a large portion of its revenues from low-priced biscuits. Parle-G and Britannia derive a fairly large share of their revenues from the medium- and premium varieties. In fact, Britannia's market share in the medium and premium varieties is significantly higher. Other organized players include domestic players like Brakemans, Champion, Kwality, Priya and MNCs like SmithKline Consumer, Kelloggs, Sara, Heinz, Excelsia (Nestle) and United Biscuits.

The unorganized sector consists of small bakery units, cottage and household type manufacturing their goods without much packaging and distributing their goods in the surrounding areas. Lower overheads due to limited local area, family management, focused product lines and less expenditure on marketing help the unorganized sector to grow.

The organized biscuit manufacturing industrys annual production were around 1.1 million tons in 2003-04, 1.25 million tons in 2004-05, 1.4 million tons in 2005-06, 1.6 million tons in 2006-07 and 1.7 tons in 2007-08.

HISTORY OF BUSCUIT INDUSTRY

Biscuits are a very significant part of the food industry in most countries of the world. A biscuit is a small baked product; the exact meaning varies markedly in different parts of the world. The origin of the word "biscuit" is from Latin via Middle French and means "cooked twice" (similar to the German Zwieback). Some of the original biscuits were British naval hard tack.

That was passed down to American culture, and hard tack (biscuits) was made through the 19th century.Biscuit can flourish in any environment where there is a base population, in the immediate vicinity of the plant; a country with large population is well suited for a biscuit plant. Biscuit is most suited for local production. This factor alone has made India a big biscuit center. Biscuit Industry has flourished in India enormously over the years and is still growing phenomenally.

This growth has funneled a growth of all facets of biscuit making in India. While the modern India is considered a centre for software development, many do not realize that one industry India cost effective and that has developed can reliable similar boast biscuit machinery capabilities of making is Biscuit. being center.

Today Most

Most talented senior management and technical manpower pool for biscuit making. Most number of biscuit production manpower and operating technicians manpower Most Most reliable cost center effective for outsourcing for manufacture food testing of biscuits. center laboratories.

Most cost effective and talented centre for product development, research and formulation development

Present Status 1. Segments: The organized and unorganized sectors of the biscuit industry is in the proportion Of 55%:45% ratio. 2. Exports of Biscuit is estimated to around 10% of the annual production during the year 2006-07. 3. Imports of biscuits into India has not shown any significant growth during the last two years and has not affected production/sales by the Indian Biscuit industry. 4. Marketing: Wholesale and Retail marketing in the Biscuit industry is carried out with a network of C & F Agencies (for States and/specific Districts) Dealers / Wholesalers and Retail shops. 5. Biscuit Industry, especially the Small & Medium Sector, consisting of around 150 units(besides three Large Industries), are facing erosion in their profitability and competitive capability, due to imposition of Value Added Tax (VAT) by the State Governments @ 12.5% on Biscuits, compared to VAT oat 4% levied on other similar food products. 6. Taxation: On behalf of the industry, IBMA has been pursing the issue with the Chief Ministers/Finance Ministers of all States and also with the Chairman of the Empowered Committee on VAT, seeking reduction in the rate of VAT on biscuit to 4%. IBMA estimates annual growth in the range of 15% to 20% during the next five years, in the event of reduction in the rate of VAT on Biscuits to 4%. 7. Per capita consumption of Biscuits in the country is only 1.8 kg, as compared to 2.5 kg to 5.5 kg in South eastern countries and European countries & USA respectively. 8. . Main Categories of Biscuits are broadly as under: Glucose, Marie. Sweet, Salty. Cream, & Milk

9. Popular Brands of Biscuits in the country are, Britannia, Parle, Priyagold, Anmol, Biskfarm, Dukes, Cremica, Priya, Veeramani, Bonn, Bhagwati, Raja,

BISCUIT INDUSTRY IN INDIA-STATUS PAPER

1. Annual Growth: The biscuit industry in India witnessed annual growth as below:-

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

14% 13% 15% 10% 14% 15% 18 %

The biscuit industry has been growing almost at static level during the last decade. However, production of Biscuits witnessed steep decline to 10% in 2008-09 and further to 14% in 2009-10 and 15% in 2010-11, Indian Biscuit Manufacturers Association (IBMA) estimate biscuit industry to grow in the range of 15% to 18%in ensuing five years. Annual Production: The organized biscuit manufacturing industrys annual production figures are given below:

(In Lakh Metric Tonnes)

2005-06 - 14.29 2006-07 - 16.14 2007-08 - 17.44 2008-09 - 16.57 2009-10 - 18.25 2010-11 - 19.10 2011-12 - 21.23 Segments: The organized and unorganized sector of the biscuit industry is in the proportion of 65%:35% ratio EXPORTS of Biscuit was 10% of the annual production during the year 2007-08, which declined to around 7% in 2008-09 and witnessed higher growth of 12% and 15% in 2009-10 and 2010-11, respectively. IMPORTS of biscuits into India have not shown any significant growth during the

last two years and have not affected production/sales by the Indian Biscuit industry. Rural-Urban penetration growth of Biscuit Urban Market: 75% to 85% Rural Market: 50% to 65% Marketing Wholesale and Retail marketing in the Biscuit industry is carried out with a network of C & F Agencies (for States and specific Districts), Dealers / Wholesalers and Retail shops.

HIKE IN COST OF PRODUCTION Biscuit Industry especially the Small & Medium Sector, consisting of around 150 units are facing erosion in their profitability and competitive capability, due to Steep hike in cost of production on account of increase in prices of major raw materials, i.e. Wheat Flour Veg. Oil, Sugar, Milk, Packaging Materials, Fuel. Wages, etc. Recent increase in prices of Petrol/Diesel in May 2008 has further resulted n cost push.

Value Added Tax Imposition of Value Added Tax (VAT) by the State Governments @ 12.5% compared to VAT at 4% / 0% levied on other similar food products has also adversely affected biscuit industry. On behalf of the industry, IBMA has been pursing the issue with the Chief Ministers/Finance Ministers of all States and also with the Chairman of the Empowered Committee on VAT, seeking reduction in the rate of VAT on biscuit to 4%. IBMA delegations have already met Shri Asim Dasgupta, Chairman,

Empowered Committee on VAT, as well as Deputy Chief Ministers & Finance Ministers of Bihar, Orissa, Jharkhand, Punjab, Haryana, Delhi, Andhra Pradesh, and officials of Uttar Pradesh etc. While most of the State Ministers have expressed their support of IBMAs representation, however the issue has not so far received favourable consideration by the Empowered Committee on VAT. PER CAPITA CONSUMPTION of Biscuits in the country is only 1.8 kg, as compared to 2.5 kg to 5.5 kg in South East Asian countries and European countries, and 7.5 kg USA Pattern of Biscuit Consumption (On Zonal basis) in the country are as below: Northern Zone - 26% Western Zone - 24%

Southern Zone - 23% East and North

East Zone

- 27%

(Including N. East) Food Laws In view of this order, the following Act & Orders stand repealed w.e.f. 5th August, 2011: 1. 2. 3. 4. 5. 6. The Prevention of Food Adulteration Act, 1954 (37 of 1954). The Fruit Products Order, 1955. The Meat food product Order, 1973. The Vegetable Oil Products (Control) Order, 1947. Edible Oils Packaging (Regulations) Order, 1998. The Solvent Extracted Oil, De-oiled Meal, and Edible Flour (Control) Order, 1967. 7. 8. The Milk and Milk Products Order, 1992. Any other order issued the under Essential Commodities Act, 1955 (10 of 1955) relating

COMPANY PROFILE

Surya Food & Agro Ltd. was incorporated in November 1992 and commenced its commercial operations of manufacturing & selling of biscuits under brand Priyagold in October 1993 . Over a period, we have established strong manufacturing capabilities and have invested substantially in developing consumer preference for our products. Our trademarks / brands Haq Se Maango & Priyagold have emerged as one of the most powerful brands in the FMCG sector. We are committed to invest in brands, manufacturing capabilities, deliverables and distribution strength. We have plants located in Greater Noida, Lucknow & Surat. We also outsource some of our requirements to another plant located in Hyderabad. Our capacities have reached 1,50,000 MT p.a., which along with strong brand building and distribution capabilities have enabled us to command a sizable market share in the biscuit market despite competition from wellestablished players in the industry. After establishing our foothold in biscuit industry, we continued to adopt strategy to identify and commercialize profitable growth opportunities by leveraging established brand and distribution network. Following this strategy, we diversified into manufacturing of fruit juices through our wholly owned subsidiary Surya Fresh Foods Ltd. in January 2006. The manufacturing facility is located at Greater Noida, U.P. We have consciously invested in creating markets for fruit juices and have established brands such as Fresh Gold & Treat. Both the brands are also well established and have penetrated into the fruit juice market aggressively by commanding considerable market share. We have also forayed into the aerated fruit drink segment with the launch of Fresh Fizzy. We are also aggressively marketing our products in institutional category. Presently our products viz. biscuits and fruit juices are supplied to Airlines, Hotels, Railways, Canteens Stores Department (CSD) and organized retail outlets.

We are also diversifying into manufacturing of chocolate and toffee & candy through our wholly owned subsidiary Surya Processed Food Pvt. Ltd. at Haridwar, Uttarakhand, where various fiscal benefits are available. Our strategy of strengthening the brands especially the umbrella brand Priyagold has resulted in creating immense brand recall value. We are continuing with our effort of strengthening the brand with a scientific approach, which will result in growth of customer base, price premium, consumer loyalty which is expected to result in increased earning and ultimately enhancing enterprise value of our company. Thus the companys manifesto is to build on the present strength created over the years and diversify into products and geographic portfolio. We aim at achieving profitable growth by penetrating into the consumption market to enhance market share by constantly innovating on product profile, investing in infrastructure thereby accelerating the top line growth to enhance the market share.

CHAIRMAN

Shri Ballabh Prasad Agarwal Chairman & Managing Director

He is the founder Director and Promoter of the company. He has about 35 years of experience in the business and industry. He is a well known personality in the biscuit manufacturing industry and has received U.P. Ratan award for his entrepreneurship. He is responsible for overall working of the company and is instrumental in making strategic decisions of the company. Under his leadership, the company has grown manifold and achieved an International Quality Crown Award, London 2004 for best quality biscuit manufacturer.

President

: Indian Biscuit Manufacturers Association

Vice President

: All India Food Processors Association

Brand Equity Award -The Economic Times, Thursday 11 June 2012 "Priyagold is the highest debutant at no 10."

Shekhar Agarwal Vice President We have been in the business of food products since the beginning. Before starting this company, my father, Shri Ballabh Prasad Agarwal, had a business of manufacturing coconut oil in Calcutta. When he moved to Delhi, there was no big market for coconut oil in the North. It is then that he decided to explore some new areas of opportunity and decided to roll out the biscuit manufacturing business. The objective has always been to provide exceptional quality products at a reasonable price for the average consumer.

In 1993, Surya Food & Agro had a very modest start with a small unit at Greater Noida, which had a capacity of 25 tonnes per day. The initial investment of Rs 4 crore came in from the coconut oil business as well as bank loans. We got a very good response for our first product, under the brand Priyagold. Ever since, we have not looked back. As of now, our company has four plants, located at Greater Noida, Lucknow, Surat and Hyderabad with a capacity of producing 1,50,000 MT per annum. Our manufacturing capabilities, along with strong brand building and distribution capabilities have enabled us to command a sizable market share over the years. We carved a niche by getting into the premium biscuits segment, instead of glucose biscuits. By doing this, over the years, we have grown to become the number one in northern and central India, and number two in the western region. This is of course talking only about the premium or non-glucose segment. However, about 70 percent of the total biscuit industry comprises of glucose biscuits. On a national scale, when one includes glucose biscuits too, we stand at number three. Priyagold (Surya Food & Agro)

Having said that, of course, there is competition and competition is necessary for growth. We take our competition as a challenge that we have to overcome. With this approach, we have seen our company grow at a stable 20-25 percent year-on-year.

India is a growing market, when it comes to the fruit juice segment. Indians have begun to take health and wellness seriously. The consumption of fruit juices has seen a surge with more and more consumers becoming health conscious. Also, there are only a few established players in this segment like Tropicana and Real. We were looking at diversifying our business in the food segment and this space looked full of opportunities to grow our business. We are doing fairly good, with a growth rate of 30-40 percent in this market. You are getting into confectioneries too. What is the plan to gain a foothold?

In the confectioneries market, there are a lot of players in the country. However, most of them are regional. At a national scale, there are only a few players in this market. There is enough room for more players to enter this segment on a national level. We have a strong brand building and distribution capabilities in our biscuits segment. We plan to use the same channels and our existing networks to target the same consumer group as our biscuit segment. So, as far as capturing a market in the confectioneries segment is concerned, it should not be a problem for us. We have to set up food kiosks for sale of our products i.e. biscuits & juices. We plan to do this at about 200 railway stations which will translate into approximately 500 food kiosks spread across various cities in India. Around 150 kiosks will be functional soon. Of course, doing all of this is a challenge in itself. But then, expansion is always a challenge in businesses. For us, this contract largely means a lot of visibility, which will help us in strengthening our brand building exercise. One should not ignore the fact that a very large segment of our countrys population still lives in rural areas. Keeping this in mind, we accord a high priority for marketing and distributing our products in these markets. Our approach has been to enable small scale distributors to take up our products at a very local level. These distributors happen to be very industrious and help us in penetrating into rural markets.

Right now, the growing markets are those of fruit juice and confectioneries. The fruit juice business is growing at a steady 30-40 percent. Of course, the biscuit segment is what makes a huge chunk of the current turnover i.e. around Rs 425 crore. As for the juices segment, it is churning about Rs 60 crore. We have always had a celebrity who is popular pan-India and can represent a mother-wife image. Previously, we had Priya Tendulkar and now we have Karisma Kapoor. And, yes, it does help to have a known face endorsing your brand.

You might have a good business going with a good turnover but if you want to build a brand with a strong recall value, having a celebrity promote your products definitely helps in adding a certain value to it. One noticeable trend is that people today go for brands. For consumers, it does not matter if the product is as cheap as Re 1, as long as it has a brand name to it. So for creating a stronger brand recall, we plan to have multiple celebrities endorsing our brands. As a company, we grew at a stable Rs 20-25 percent per annum. In the year 2003, the company touched the Rs 100 crore turnover. For me, reaching that figure has been the biggest and most unforgettable milestone. Right now, we are sitting at Rs 500 crore. The next challenge is to hit a Rs 1,000 crore mark by 2011. PRODUCTS AVAILABLE Butter Bite, Classic Cream, Kids Cream, Butter Lift, Marie Lite, Magic Gold,

CONTACT US SURYA FOOD & AGRO LTD. D - 1, Sector - 2, Noida - 201 301, U. P., India Tel Fax : +91 - 120 - 2552989 / 2522939, : +91 - 120 - 2558154

Email : mail@priyagold.com

OTHER MANUFACTURING UNITS: SURAT HYDERABAD LUCKNOW GREATER NOIDA

REVIEW OF LITERATURE
MEANING OF COSUMER BEHAVIOR The term consumer behavior is defined as the behavior that consumers display in searching for purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. Consumer behavior focuses on how individuals make decisions to spend their available resources (time, money, effort) on consumption related items. That includes what they buy, why they buy, when they buy it, where they buy it, how often they buy it for purchase and the impact of such evaluations on future purchases, and how they dispose of it. PERCEPTION

We use our senses (sight, smell, taste, touch, and hearing) to interpret information and give meaning to what object around us. Perception is the process by which we organize and select information received through the senses and give meaning to the objects in the world around us. This is done by our brain. We do not always do this correctly. How do you determine whether furniture is durable? Suppose a marketer finds that you lift it and if it is heavy you conclude that it is durable.

SUBLIMINAL PERCEPTION

The idea that you can influence consumer behavior by flashing subliminal messages is something that started in the early 1950s.

PERCEIVED RISK Some products are perceived as high risk (sports car, house) and some are seen as low risk

(flour, a deck of playing cards). In general, two factors affect the perceived risk of a product that is uncertainty and consequences. FINANCIAL RISK Sometimes consumers are concerned about losing money if a product does not work well. PERFORMANCE RISK You might be worried that the product does not work. Do you worry that salt will not work.

PSYCHOLOGICAL RISK Sometimes people are concerned that a product may not fit their self-image. This is mainly

true for clothing. ATTITUDES Attitudes have three components: the cognitive deals with beliefs and knowledge the affective deal with emotion likes and dislikes and the cognitive, which is more behavioral, deals with actions, motives, and intent. The teacher evaluation scale completed by students every semester measures your attitude towards a particular instructor.

ATTITUDES CHANGES

Marketers use several approaches in order to try to changes the attitudes of consumers. As was noted above, the attributes of a product play an important role in the consumer decision making process. It means the consumer to change the product.

REFERENCE GROUP People who are members of a gang tend to dress alike and buy the same brand of beer and

cigarettes. It means to purchase same thing of products. FIVE STAGES OF CONSUMER BUYING BEHAVIOR Need awareness: The beginning point of most purchasing is your potential buyer recognition of a need in their life. This need can be established by encountering a problem or prompted by a company marketing. Information search: With the rise of the internet, it has never been easier for buyers to research their purchase. Make sure your small business is in the game by providing educational material on your website. Check options: After an information search, the customer will evaluate all the available options. Options include wanted features pricing and company credibility. Purchase decision: This is the moment when the customer wants to buy. Deals are easily lost when you keep selling to the customer. There an old adage in sales when the customer says I will take it. Keep your mouth closed, and close the deal.

 Post buying behavior: An overlooked piece of consumer buying behavior is what occurs after the purchase. The buyer will look for reinforcement from media friends and other sources confirming they made the right decision. FACTORS INFLUENCING CONSUMER BEHAVIOR Personal factors. Psychological factors. Social factors. Cultural factors.

Personal factors: Age and life cycle stage, occupation, economic situation, lifestyle, personality and self concept are called personal factors. It affect the buying behavior to the consumer

Psychological factors: Motivation, perception, learning are called psychological factors. It affects the consumer behavior in way of mentally.

Social factors: Social factors means around the society methods and traditions followers. Simply they are group of people under religions and caste.

Cultural factors: To follow some traditions means culture the people live with in some restrictions and conditions it also to affect the consumer behavior.

A LITERATURE REVIEW FROM MONEESHA PACHAURI

Meaning
Consumer behaviour is the study of how people buy, what they buy, when they buy and why they buy. It blends elements from psychology, sociology, sociopsychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Consumer Behavior and Marketing Strategy The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how,

The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products);

The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media);

The behavior of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome;

How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and

How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. Understanding these issues helps us adapt our strategies by taking the consumer into

consideration.

There are four main applications of consumer behavior:

The most obvious is for marketing strategy i.e., for making better marketing campaigns. For example, by understanding that consumers are more receptive to food advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon. By understanding that new products are usually initially adopted by a few consumers and only spread later, and then only gradually, to the rest of the population, we learn that (1) companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) it is important to please initial customers, since they will in turn influence many subsequent customers brand choices.

A second application is public policy. In the 1980s, Accutane, a near miracle cure for acne, was introduced. Unfortunately, Accutane resulted in severe birth defects if taken by pregnant women. Although physicians were instructed to warn their female patients of this, a number still became pregnant while taking the drug. To get consumers attention, the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers.

Social marketing involves getting ideas across to consumers rather than selling something. Marty Fishbein, a marketing professor, went on sabbatical to work for the Centers for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. The best solution, obviously, would be if we could get illegal drug users to stop. This, however, was deemed to be infeasible. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes.

As a final benefit, studying consumer behavior should make us better consumers. Common sense suggests, for example, that if you buy a 64 liquid ounce bottle of laundry detergent, you should pay less per ounce than if you bought two 32 ounce bottles. In practice, however, you often pay a size premium by buying the larger quantity. In other words, in this case, knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain.

GENDER IDENTITY IN CONSUMER BEHAVIOR RESEARCH The process of consumption has long been associated with sex and gender, thus, it comes as no surprise that consumer researchers often examine the effects of these variables on consumer behaviors. It also comes as no surprise that much is known about sex and gender and how they impact buying and consuming activities. Yet there is one gender-related variable, gender identity that has both intrigued and perplexed consumer behavior researchers for over four decades. Gender identity, sometimes referred to as an individual's psychological sex, has been defined as the fundamental, existential sense of one's maleness or femaleness" (Spence 1984, p. 83). Since gender is culturally derived, gender identity is similarly rooted in cultural understandings of what it means to be masculine or feminine (Firat 1991; Lerner 1986). For many years, sex and gender were thought to be inseparable--that is, men were masculine and women were feminine. But what consumer behavior researchers, among others, recognized long ago was that some men were more feminine than masculine while some women were more masculine than feminine. In the postmodern culture in which we now live, this separation of gender from sex is even more apparent.

DATA ANALYSIS AND INTERPRETATION

ANALYSIS USING PERCENTAGE METHOD

PRIYA GOLD BISCUITS CONSUMER

No. of Respondents

Percentage

59 Valid

59

Yes

No

41

41

Total

100

100

Inference: Out of 100 samples 59 people consumed Priya Gold Biscuits 41 people did not consumed.

consumedtrue
70 60

50

40

30

20

Percent

10 0 yes no

consumedtrue

CONSUMPTION OF PRIYA GOLD BISCUITSUNDER SEX

Consumption of PRIYA GOLD BISCUITS

Total

Yes

No

Male

33 26

15 26

48 52

Sex

Female

Total

59

41

100

Inference: Total male is 48 but a true biscuit consumer is 33 and total no of female are 52 but Priya Gold Biscuits consumer is 26.

Occupation

No. of Respondents

Percentage

Agriculture

Business

Valid
Salaried 20 20

Student

41

41

CONSUMPTION BASED ON OCCUPATION

Housewife

25

25

Total

100

100

Inference: In table shows that, how the consumer purchase Priya Gold Biscuits under their occupation. CHART 5.1.3
occupation
50

40

30

20

Frequency

10

0 agriculture business salaried student housew if f e

occupation

CONSUMED PRIYA GOLD BISCUITS BASED ON OCCUPATION (Out of 100)

Occupation

Total

Business

Salaried

Student

Housewife

Agriculture

5 Consumed Yes True

13

20

16

59

21

41

Yes

20

41

25

100

Total

Inference:

Total 100 sample their occupation is different (agriculture, Business, salaried, student and housewife. In that category the percentage diagram shows student are important buyer for Priya Gold Biscuits out of 59 students was 20 were consumed Priya Gold Biscuits.

SELECTING BRAND

No. of Respondents

Percentage

Quality

38

38

Valid

Brand name

24

24

Price

30

30

Package

Total

100

100

Inference: The people consumed Priya Gold Biscuits under their quality, because they first preference to quality and next is price.

CHART
selecting brand
40

30

20

Frequency

10

0 quality brand name price package

selecting brand

PRIYA GOLD CONSUMPTION BASED ON AGE

No. of Respondents

Percentage

10-20

38

38

20-30 Valid 30-40

37

37

15

15

40-50

10

10

Total

100

100

Inference: The table shows that Consumption of Priya Gold Biscuits in age wise. Highly age belonging to 10-20 consumes more biscuits.

PRIYA GOLD BISCUITSCONSUMPTION BASED ON AGE

Age

Consumed Priya Gold

Total

Yes

No

10-20

17

21

38

20-30

25

12

37

30-40

15

40-50

10

Total

59

41

100

Inference: I done survey 10-50 age people in that report give information am 20-30 age people are consumed Priya gold biscuits compare to other group age people.

PRIYA GOLD BISCUIT KNOWN FROM

Known From Advertisement Friends Family members Valid Neighbors No. of Respondents 18 18 15 8 Percentage 18 18 15 8

Total Missing Total System

59 41

59 41 100

Inference:

People get aware from advertisement and friends, family members, neighbors. Out of the source more number of people gets aware from their friends and advertisement. CHART

know about
advertisement

Missing

f riends

neighbors

f amily members

PRIYA GOLD BISCUIT CONSUMED BASED ON PRICE Price Range 5-10 10-15 Valid 15-20 >20 Total Missing Total System No. of Respondents 9 14 20 16 59 41 100 Percentage 9 14 20 16 59 41 100

Inference:

From the above table and the diagram it shows that from Rs15 to 20 products is moving highly in the market.

price true

5-10

10-15 Missing

15-20

>20

ALTERNATIVE

No. of Respondents Alternative Britannia Sun feast Parle Valid Total None 47 28 21 4 100

Percentage

47 28 21 4 100

Inference: From the above table and diagram, the alternative for the Priya Gold biscuit is Britannia and Sun feast.

CHART
alternative

none

parle

britannia

sunfeast

PRIYA GOLD BISCUITSCONSUMED UNDER

Ranges

No. of Respondents

Percentage

Valid

Regular

23

23

Flavor Total Missing Total System

36 59 41 100

36 59 41 100

Inference:

From the above table, when comparing the regular biscuit and flavors biscuit. The flavors biscuit is well moving in the market.
CHART

purchase under
40

30

20

Frequency

10

0 regular flavore

purchase under

NO. OF FLAVOR No. of Respondents Ranges Valid Custard cream Crunch cream Bourbon Choco Marie Total Missing Total System 11 5 10 10 36 64 100 11 5 10 10 36 64 100 Percentage

Inference:

When we comparing the Priya Gold Biscuits flavors, custard cream is moving highly in the market.

CHART

flavor
12

10

Frequency

0 custard cream crunch cream bourbon choco marie

flavor

SUGGESTION

Suggestions More advertisement Attractive package Introduce new flavor

No. of Respondents 38 14 15

Percentage 38 14 15

Valid

Better quality Less price Total

17 16 100

17 16 100

Inference:

From the above table and the diagram, most of the people suggestion is to give advertisement.

suggestion
40

30

20

Frequency

10

0 more advertisement introduce new f lavor better quality less price attractive package

suggestion

5.2 ANALYSIS USING WEIGHTED AVERAGE METHOD

XW = WX / X

Factors

High Satisfaction 36 16 28 15 108 48 84 45

Satisfaction

Dissatisfaction

Taste Price Quality Design

22 42 30 42

44 84 60 84

1 1 1 2

1 1 1 4

TABLE 5.2.1

LEVEL OF SATISFACTION

High Satisfaction 108 48 84 45

Satisfaction 44 84 60 84

Dissatisfaction 1 1 1 4

Total 153 133 145 133

Average 51 44.33 48.33 44.33

Inference: From the above table the average for taste and quality is high. So the consumer gives more preferences.

IT SHOWS THE SATISFACTION LEVEL

120
100 80
Taste

60 40

Price Quality Design

20
0 High Satisfaction Satisfaction Dissatisfaction

Inference: From the above chart shows taste and quality is high. So the consumer gives more preferences

6.1 FINDINGS OF THE STUDY

Out of 100 (59 no of people consume Priya Gold Biscuits and 41 no of people did not consumed). Out of 59 (33 male and 26 female consume Priya Gold Biscuits). Most number of people consumes Priya Gold Biscuits under quality based. Student and house wife give most preference to Priya Gold Biscuits. 20-30 age people is to buy more (25) out of 59. Many people know Priya Gold Biscuits about through advertisement. 15-20 price products are well moving in market. . Compare to flavor and regular biscuits, flavor is well moving in market out of 59 (36 is flavor). In flavor custard cream is high moving compare to other flavor. Most competitor is Britannia.

6.2 SUGGESTIONS AND RECOMMENDATIONS

The suggestions are collect data from public to develop the market for Priya Gold Biscuits. The most of the people given suggestions about the advertisements because they did not have much more advertisement compare to Britannia biscuits. They can improve the quality with favor prices. To improve the brand name among the public, because brand name is very important to every product now people, to ask the product to it their brand name. They can improve the brand awareness through educational institutions by giving the sample piece. To improve in the rural market.

CHAPTER-VII
CONCLUSION

Consumer Behavior will help to learn consumer buying attitude. In Priya Gold Biscuits not get much more awareness from public, so kindly to improve the advertisements and other improvements process.

To concentrate more on channel of distribution. The most Priya Gold Biscuits consumer is student and housewife, to introduce more flavors and improve the taste and quality of the biscuits. The most buyers to consume under quality of the biscuits and other option are price. To give important to street vendors because more number of people consumed under street vendors. So kindly improve the advertisement and give more awareness to the people.