Chapter I

Introduction
Prologue
After crude oil, coffee is the largest traded commodity in the world. Being an
agricultural commodity it is exposed to vagaries of weather, which affects its prices. Brazil
and Columbia are top two coffee producers in the world. They account for more than 40
percent of the total world production while India accounts for about 4.5 percent.
The production of coffee during the fiscal 2002-03 stood at 275.275 million kg which
is marginally lesser by 7.31 percent from previous year's 297 million kg. Indian coffee
production has an average yield of 800-900 kg per hectare, which is low compared to the
world average of 1,100 kg per hectare. The area under coffee cultivation is approximately 3.1
lakh hectares. The industry provides employment to 6 lakh people. Among the coffee
growing states, Karnataka accounts for 70 percent of country's total coffee production
followed by Kerala (23 percent) and Tamil Nadu ( about 6 percent) respectively.
Like its plantation counterparts, coffee has been in a trough for the last couple of
years. Although it is considered as an export-market crop, its performance has not been
encouraging in the post 1991 economic liberalization period. Production and productivity
figures are healthy while the cost of production is creeping upwards. International demand
exists but at a much lower price than desired where only one fifth of the coffee bean
produced in India every year is consumed in the domestic markets, while rest of it is
exported. Further, a report by World Trade Organization (WTO, 1997) indicates that in the
post-WTO regime, coffee prices have fluctuated widely from year to year and the pricerealisation on the crop was down.
Owing to poor foresight and unplanned growth, India's coffee industry which was
reported chasing the ephemeral export markets blindly at the cost of domestic consumption is
now desperately looking for ways to pull itself out of the pit it finds itself in. The recent India
International Coffee Festival may have provided some hope about the future of coffee in the
country but much need to be done holistically to strengthen the value chain - from farm
production to household consumption. Till recently, the Coffee Board directed coffee sales in
India through the Compulsory Pooling System as per the Indian Coffee Act, 1942. Coffee

growers with a total coffee cultivation area of above 10 hectares were required to sell a
minimum of 30% of their production to the Coffee Board. This quota system has now been
abolished to encourage exports and now growers can export 100% of their produce and they
can enter the domestic coffee trade directly. With many growers on the supply side and
fragmented and un-organized buyers on the demand side, the market appears to be very much
challenging and competitive in its structure.

Domestic Coffee Market in India

Thus, although coffee remains an important exportable item, the uncertainty in the
export market highlights the importance of the domestic coffee market as well.
Unfortunately, the commodity suffers from an adverse consumption skew in domestic
markets. Domestic coffee use continues to remain sluggish and the market has stagnated at
about 58000 tonnes to 60,000 tonnes for too long because of utter lack of concern for the
domestic consumer. The depressed farm prices have not resulted in lower retail prices that
could stimulate consumption. The downward international price movements in coffee are
generally not reflected in the domestic market, while the upward movements are immediately
absorbed. A classic example is the price movement in 1996-97, when domestic prices were
higher than international prices by 50 per cent. As a result of higher prices in the domestic
market coffee meant for exports has been diverted to the domestic market. Consequently, it
hampered India's reputation as a reliable supply point in the international market.
A database from the Indian Coffee Board revealed that there was a 33 per cent drop in
the average consumer retail prices of roast and ground coffee powder in 2001 compared to
1997 levels, while the comparative drop in the average producer prices for the same period
was more than 56 per cent. Hence the domestic demand for coffee can well be said sticky.
Bearing this in mind, the retailers would rather offer more for the same price with freebies
than rolling back the consumer retail prices of coffee.
The coffee costs much more than tea not only due to its higher price (about 3-4 times
that of tea at retail level) alone but also other considerations. Coffee is considered as more
expensive than tea, and needs more sugar and milk for preparation than tea. While with 1 kg
tea one can produce 400-500 cups of tea, from 1 kg coffee only 100-150 cups of coffee can
be made. Consequently, over the past 10 years, tea and soft-drinks threatened to erode

coffee's market share. In India the per capita consumption of coffee is only around 55 grams
against 630 gms of tea. The consumption of tea, a close substitute for coffee has increased
from 296 grams to 657 grams during the above time periods. In most markets, soft drinks and
even the bottled water have gained a share at the expense of these traditional beverages.
In comparison with 7 kg of per capita consumption of coffee in Germany and 11 kg in
Switzerland, the abysmally low domestic per capita coffee consumption which had shrunk
from 80 grams in 1960-61 to mere 66 grams in 1996-97and to an abysmal 55 grams
currently, projects a grim future. Further, the situation worsens with a reported consumption
drops of three to four per cent being an annual phenomenon within the category because of
rise in its price and the youth in the South not taking up the habit of drinking coffee.
According to a section of the trade, the consumption of instant coffee in India has fallen by
about 40 per cent and roasted and ground coffee by 25 per cent since 1995.

Role of Indias Coffee Board

In the present scenario, a stable and growing domestic market assumes a great
importance to the Indian Coffee growers, distributors and coffee processing companies. In
order to arrest the down trend and also to boost the domestic consumption from 58000 tonnes
to 80,000 tonnes over a five-year period, in January 1998, India's top coffee marketing
companies, Nestle, Hindustan Lever and Consolidated Coffee were planning to launch a
generic marketing and advertising campaign for the promotion of coffee in India by offering
honorary professional expertise to the Coffee Board. The union government was reportedly
contributed around Rs. 9 crores spread over 3 years for this campaign. The cost of this
campaign was estimated at Rs. 30 crore over a period of 5 years (Rs. 6 crores per year) to be
financed from the general funds created by cess on coffee exports. There were plans to
double the cess on coffee exports to Re 1 per kg to generate extra revenue of Rs. 7.5 to 10.0
crores for use for the campaign. The Board, which prepared the Rs.300 million ($6.92m)
domestic market promotion plan to popularize coffee drinking, hopes to secure partial
funding from the Amsterdam-based Common Fund of Commodities. The Board, which was
conducting auctions until 1996, is now concerned exclusively with market promotion,
research, and farm extension and labor welfare.

The generic promotional campaign named Think Coffee Pilot Project was launched
by the Chairperson of the Coffee Board Ms. Lakshmi Venkatachalam on 16th November
2002 in Pune. The Coffee Board has roped in a professional public relations agency to
implement the plan. The plan involves campaigning through press, radio, television and
outdoor advertising to create awareness in the market about the variety of coffee available in
the country; conducting market and technical research; conducting coffee making
demonstrations, coffee recipe contests and marketing percolators for home use; putting up
vending machines at railway stations, bus stops and airports and mobile vans at marketplaces
and setting up coffee bars at tourist places. The Coffee Board also instituted Flavour of
India Fine Cup Award towards promoting the regional coffee brands and varieties besides
educating the consumers. The Coffee Board may also help entrepreneurs set up certified
outlets on commercial basis to sell good quality coffee.

Consumption Behavior of Coffee across the country

About three-fourth of coffee produced is consumed in the Southern part of the
country which is mostly confined to only some select regions in South India (such as Tamil
Nadu, Andhra Pradesh and Karnataka) which consume coffee on a regular basis. In the
Northern, Eastern, Western and Central India, mostly a small quantity of instant coffee is
consumed that too occasionally at fast food joints, railway stations, bus stands and road-side
shops.
In Southern region, the coffee consumption is 240 grams per capita which is well
above the national average of 55 grams. In North India, per capita coffee consumption is
barely one cup in a whole year which stands at a much lower 4-5 grams. Filter coffee has
been a part of tradition and culture of South India. It is inconvenient to brew filter coffee
which is less popular in tea drinking Northern regions. Pure instant coffee is mainly
consumed in North India. Also, urban consumers, who are not daily drinkers of coffee, prefer
pure instant coffee. Hence, apart from the Southern region of the country and the urban
market (which consumes mostly the branded and instant coffee) there has been hardly any
effort for market penetration.
Tamil Nadu consumes around 50 % of the annual 55000 60000 tonnes of domestic
coffee consumption and boasts the highest per capita consumption in the country.

Unsurprisingly, the largest number of local retailers is found in the State and the consumers
are knowledgeable enough to specify the type of bean, type of roast and grind.

Consumer Awareness and Penetration

Coffee is considered as a gourmet drink confined to middle class literate segment. It
has not penetrated the low-income groups as tea did. Coffee is an acquired taste and habit
formation is an influencing factor in consumption.
In comparison to tea, penetration of coffee is significantly low at 8.8% at all India
level and coffee penetration is relatively high at 17.1% in urban areas compared to only 5.6%
in rural areas that too in South India. In other parts of rural India, penetration is negligible.
There is a reasonable degree of price sensitivity and consumer switch to other
beverages such as chicory blend coffee and even tea. Venkatram and Deodhar (1999)
estimated the short-run and long- run price elasticity of demand of coffee and the influence
of other variables on the demand for coffee. The results showed that although price elasticity
of demand for coffee is low, it is much lower in the short-run than in the long- run. This
suggests that temporary or short-run price incentives will not achieve any significant demand
increase. Moreover, coffee demand is characterized by habit formation. Therefore, demand
for coffee can be increased by non-price factors like improving quality standards and
communicating the same to the consumers via generic promotion campaigns and/or brand
advertising.

Market Growth and Future Prospects

With the size of over Rs.1600 crore, the domestic coffee market is very important and
has a potential for growth in the beverage market. The branded coffee market (premium as
well as blended segments) is growing at a faster pace around 6-7% per annum in volume
terms. Though there was some drop in consumption due to steep rise in coffee prices and
shift in consumer preference towards carbonated drinks in the market. But recent drop in
domestic prices (due to drop in international prices) coupled with introduction of smaller
packs and emphasis on coffee-chicory mix has led to increase in consumption of coffee in the
country. Tea and coffee account for almost 70 per cent of the non-alcoholic beverages
consumed in India, whereas soft drinks have just a two per cent share. Thanks to the growing
concepts such as Caf bars and bistros hitting the otherwise tea dominated market.

The younger generation in metros like Chennai is patronizing coffee pubs serving
Exotic coffee such as Espresso and Cuppuccino. It is speculated by the industry experts that
in the long run, they switch to the Indian Coffee making the Exotic ones an occasional
luxury but ultimately got hooked to the habit of consuming rich Indian Coffee.
Several private players were also carrying out intensive promotion, developing better
advertising and marketing that speaks directly to the consumer groups with lower-thanaverage coffee consumption such as young adults.
In order to boost the coffee consumption the coffee industry has started emphasizing
on three non traditional channels of distribution, viz., Cafe chains, vending machines and
ready to drink products and the speciality roast and ground (R&G) coffee shops. The players
in the industry are now concern more with the development of new products and packaging
forms aimed at quality, convenience and experience enhancement. The industry expects
vending machine to contribute 45 per cent of the volume followed by Caf chains with 40 per
cent of the consumption market. Expansion of distribution network by setting up vending
machines for both packed and liquid brews with special emphasis on Northern and Eastern
parts of the country has been carried out to boost the internal consumption. The non
traditional coffee distribution channels are expected to touch Rs.1900 Crore ($ 380 million)
by 2005 and to contribute about 80 per cent to the total coffee sales in the country.
As a recent transformation in the sluggish domestic coffee market, the coffee bars
(Cafs) that are flourishing all over the country and experimenting with innovating coffee
blends are beginning to make way to the concept of including food in their menu. This was
pioneered by Caf Coffee Day, owned by the Amalgamated Bean Coffee Trading Company
Ltd (ABC), which has revolutionized the Caf concept in the country. There are other players
in the fray including Barista, Starbucks of U.S, Qwiky and Java City with plans of opening
Cafs in the country. A statistic from Harish Bijoor Consultants reveals that there is only one
Caf for 16 lakh urban consumers which means there is still scope for expansion to go upto
at least 3000 Cafs in the country.

Market Characteristics and Major Players

Based on the product, the coffee market can be segmented as instant and filter coffee.
Both of them can further be segmented into pure and chicory blends. Typically, the branded

coffee consumption constitutes around 19 per cent of the domestic coffee consumption in the
country and a significant increase is anticipated by the industry experts.

Major players
Filter Coffee (R&G)
The market for filter coffee is highly fragmented and dominated by the unorganized
sector. There are some 600 brands of filter coffee available in the Southern states alone. The
market is typically cluttered by the unorganized local suppliers supplying in bulk and retail as
well. According to a recent report by the Times Food Processing Journal, Amalgamated Bean
Trading Company (ABCTL) with more than 300 Coffee Points, Narassus with about more
than 60 outlets and Leo about 30 outlets are the major players in the fray.
Filter chicory blend
Major brands in this segmento are HLL's Green Label and Tata Coffee's Coorg.
Instant Coffee
The domestic instant coffee market after experiencing healthy growth in early
nineties has seen sales volume dip drastically due to steep increase in prices. According to a
report by the Financial Express, Hindustan Lever (HLL) is the market leader in the Indian
processed coffee segment with a 31.05 per cent share.
Instant Pure
Nescafe dominates the 1,700 ton pure instant coffee segment. Recently, Nestle has
launched other variants of Nescafe, Nescafe Gold to consolidate its position in the market.
Instant chicory
This segment accounts for 70 per cent of instant coffee volumes. Brooke Bond's Bru
is the market leader with a 48 per cent market share followed by Nestle Nescafe's Sunrise
(including 2 variants viz Sunrise Premium and Sunrise Extra) with 43 per cent market share.

About Amalgamated Bean Coffee Trading Company Ltd (ABC)

Amalgamated Bean Coffee Trading Company Limited, popularly known as ABC was
started at Chikmagalur as a traditional family owned a few acres of coffee estates. With a

rich coffee growing tradition since 1875 behind it, ABC began exporting coffee to the
connoisseurs across USA, Europe and Japan. ABC exports 30,000 tonnes of coffee per year
accounting for 14 per cent of the countrys total export and 24 per cent of Karnatakas and in
a short span of 7 years the company retained its reputation of being the largest coffee
exporter in the country.
ABC has a wide and professional network in the major coffee growing areas of the
country comprising over 50 agents and 50 collecting depots. ABC's two curing works at
Chikmagalur and Hassan cure over 60,000 tonnes of coffee per annum. All the activities such
as selection of raw beans, roasting, grinding, packing, selling, brewing and promotion are
carried out in a manner that would give the customer a complete coffee experience.
ABC has a well-equipped roasting unit catering to the specific requirement of the
consumers. The process is carried out under the control of experienced personnel to meet
highest quality standards. The most modern technology available is used to maintain
consistency and roast the coffee beans to the demanding specifications of the discerning
coffee consumers. Inspired by the rich heritage in coffee growing and the impressive success
in the export sectors, ABC has ventured into the domestic market with a filter coffee brand
"COFFEE DAY".
As an extension of the coffee selling activity and to enhance the strong brand image,
ABC has set up a chain of coffee parlors called Caf Coffee Day. Here, freshly brewed
Indian as well as International blends of coffee are made available with modern gadgets. The
coffee connoisseurs taste the best of international coffees and also experience the information
explosion by surfing the Internet on the computer terminals. Presently, there are over 75 such
Caf Coffee Day outlets in operation in Bangalore, Mangalore, Chennai, Hyderabad, Delhi
and Pune cities and recently the 100th outlet is opened in Delhi in June, 2003. ABC has plans
of setting up many more Caf Coffee Day outlets in the other major cities in India in the near
future. Opening Coffee Day Cafes in the West and North Zone is also in the pipeline. Having
tied up with Music World chain of stores, to open cafes in their premises throughout India
and also to open outlets in the Airports of Bangalore, Chennai and Hyderabad, the company
is in the phase of massive expansion. Besides pioneering the concept of coffee vending,
ABC, which has introduced the countrys first filter coffee vending machines, has a plan to
set up at least 10,000 vending machines by 2003.

Coffee Points R&G Coffee Retailing Outlets of ABC

Coffee Day has set up a chain of over 300 exclusive Coffee Point outlets in the States
of Karnataka, Tamil Nadu, Kerala and Andhra Pradesh. Presently Coffee Day has over 22
exquisite blends of coffee on offer across all Coffee Point outlets, and surely is one of the
fastest growing filter coffee brands in modern India. In these outlets various accessories like
coffee filters, gift packs for any occasion etc are also offered. Coffee Day is the only
company, which sells its product in the exclusively set up outlets of its own. Ambience of
these outlets is a delight to watch. ABC has a separate marketing wing, Amalgamated
Holdings Limited that handles the marketing of Coffee Day.
Coffee Day's product mix of 22 blends has been finalised after extensive testing at a
state-of-the-art coffee laboratory, which is headed by the country's foremost coffee quality
professionals.
The company grows its own coffee and also started buying directly from planters who
grow it at the higher altitudes. It is the only one in the country to have an exclusive lab for
testing and approving the quality of coffee. To retain its freshness and flavour that is so
important in brewing a good cup, most of the coffee reaches the outlets not later than the
third day from roasting.

Problem Focus
Coffee drinking is found dominant in the Southern states of Karnataka, Tamil Nadu
and Andhra Pradesh. Among the types, filter coffee is preferred by most of the regular coffee
drinkers in the regions. The coffee consumption is believed to be driven by the factors like
taste, habit formation, affordability and the like. Intriguingly, the market for roast and ground
coffee is highly unorganized and fragmented where the State level and also the local coffee
retailers enjoy a stronger position in terms of market share, consumer preference and also a
large loyal customer base to leverage and strengthen their brand equity. There are reportedly
over 600 brands in the market. In the wake of a growing market for branded coffee, with the
motto of offering premium quality branded roast and ground (R&G) coffee, ABC has set up
Coffee Points to sell its Coffee Day brand of R&G coffee to the coffee lovers since 1996.
In order to acquire better understanding on the raison d'tre of the purchase decisions
of the coffee consumers, their attitudes towards branded roast and ground (R&G) coffee,

their responses towards the sales promotions, to examine the brand equity for the brand
Coffee Day among its customers etc, ABC decided to carry out the present study in
Coimbatore with the following specific objectives.

Objectives of the study

The specific objectives of the study are:
i)

to examine the Coffee Consumer segments in Coimbatore City;

ii)

to assess the brand equity of Coffee Day in the city;

iii)

to evaluate the effectiveness of promotional programmes of Coffee Day

among the consumers; and

iv)

to analyse the buying behaviour of the business markets in the city.

Scope of the Study

This study would be helpful in obtaining first- hand knowledge on the existing brand
equity for Coffee Day in Coimbatore City. The study would also offer detailed insight on the
potential consumer segments in the coffee market of the city for Coffee. It would enable the
management to obtain first hand knowledge about the brand, its perceived image and equity
among the consumers in the city. The effectiveness of the promotional efforts including
advertising, taken up by the company and the buying behaviour of the business markets like
hotels, restaurants and bakeries would also be obtained from the study. The study would help
the company to adopt innovative ideas and newer marketing strategies to get a strong foothold in the market.

Limitation of the Study

Since the study area is limited to Coimbatore city, the findings may not be applicable
to other markets as vast differences exist among the consumers on demographic and
psychographic characteristics across the coffee markets. This study is based on primary data
collected from sample consumers by survey method. As many of the consumers furnished the
required information from their memory and experience, the collected data are subject to
recall bias. However, utmost care had been taken in every facet of the study to minimize the
bias by including in the interview schedule, the questions that would facilitate cross

checking. Hence, the findings of the study may be considered appropriate for the situations
similar to the study area and extra care should be taken while generalizing the results.

Organization of the Thesis

The thesis is organized in to six chapters as under:
Chapter I

Introduction - it covers the information such as objectives, scope and

limitations of the study.

Chapter II

Concepts and Review - it encompasses discussion on concepts used in

the present study and the results of the earlier studies.

Chapter III

Design of the Study - it specifies the sampling design, method of data

collection and tools used and analysis of data.

Chapter IV

Description of Study Area a brief of the general features of the study

area are described in this chapter.

Chapter V

Results and Discussion - the results of the analysis are presented and
discussed with respect to the objectives of the study.

Chapter VI

Summary and Conclusion - the summary of the results of the study is

presented to draw specific conclusions and suggestions to help the
case firm to introduce innovative marketing strategies.

Chapter II
Concepts and Review
In this chapter, the concepts relevant to the present study are compiled and presented
in a logical order. To support and enrich the theoretical orientation of the present study, an
attempt was made to review similar and relevant past studies and literature available in
books, scholarly journals, online e-journals, magazines, newspapers and other resources.
The concepts and the past studies related to:
1. Market
2. Marketing
3. Market Segmentation
4. Consumer
5. Consumer Buying Behaviour
6. Marketing Mix
7. Promotional Mix
8. Advertising
9. Sales Promotions
10. Advertising or Promotional Effectiveness
11. Brand
12. Branding
13. Brand Awareness
14. Brand Knowledge
15. Brand Identity
16. Brand Loyalty
17. Perceived Quality
18. Brand Associations
19. Brand Image
20. Brand Equity
21. Business Markets are discussed in detail in this chapter.

Market
The word market is derived from Latin word Marcatus which referred merchandise (or)
place where business is conducted.
According to Larson (1953), a market may be broadly described as the entire area
within which the forces of demand and supply of a given commodity or service interact in effective
exchange thereby establishing prices. Thus whenever and wherever buyers and sellers are brought
together through whatever means of communication, market exists.
Tousley, Clark and Clark (1962) mentioned that a market might refer to a place (or)
the actual forces that result in the exchange of goods from one hand to other.
Cundiff and Still (1968) defined market as the aggregates of forces or conditions
within which buyers and sellers make decisions that resulted in the transfer of goods and
services and determination of prices, namely, value in exchange.
Arvind (1982) viewed market as a set of all actual potential buyers of a product.
Stanton (1984) defined market as a concentration of people with needs to be
satisfied, money to spend and willingness to spend on it.
Nair et al., (1986) defined market as people with needs to satisfy, money to spend
and willingness to spend it.
According to McDaniel et al., (1987) a group of customer or potential purchasers
who represent sufficient profit potential to be attractive to the marketer, and who as a group
can be identified and reached with a tailored marketing mix.
According to Kotler (2000) market consists of all the potential customers sharing a
particular need or wants and might be willing and able to engage in exchange to satisfy that
need or want.
In the present study, all the households drinking coffee or tea or both in their home
are considered as the market.
Marketing
Pyle (1956) defined marketing as that phase of business activity through which
human wants are satisfied by the exchange of goods and services.

According to Buzzel et al., (1974) marketing referred to the performance of business

activities that directed the flow of goods and services from the producer to the ultimate
consumer or user.
Padolecchea (1984) opined marketing as merely an instrument or technique to
stimulate demand, accelerate production process at profit.
Thomas (1984) defined marketing as the total function of bringing the goods and
services from the producer in usable and finished state to the ultimate customer.
Subrahmanyam et al., (1985) defined marketing as the process of anticipating and
creating consumers needs and wants and of organizing all the resources of the company to
satisfy them.
Bishwambhar (1986) considered the marketing concepts with management
orientation. The task of the organization was to determine the needs and wants of target
market and the organization has to deliver the desired satisfaction more effectively and
efficiently than its competitors.
Manmohan Singh (1986) considered marketing as the creative management function
which promotes trade, employment by assessing consumer needs and initiating research and
development to meet them.
According to McDaniel et al., (1987) the process of planning and executing the
conception, pricing, promotion, and distribution of ideas, goods, and services to create
exchanges that satisfy individual and organizational goals.
Kotler (2000) defined marketing as a social and managerial process by which
individuals and groups obtain what they need and want through creating and exchanging
products and value with others.
In the present study, marketing is defined as a set of activities designed to plan,
produce, price, promote and distribute coffee to satisfy the needs of the consumers.
Market Segmentation
According to the Burke ICE Research, there are many routes both analytically and
philosophically to segmenting a market that yields segments, or groups of customers (or
prospective customers) where: i) Individuals in the same segment are similar to one another

on important marketing-relevant variables; ii) Individuals in different segments are different

from one another on important marketing-relevant variables. The commonly used parameters
for segmenting markets are: i) Product (Amount of use, type, usage conditions, loyalty etc.,)
ii) Psychographic (lifestyles, attitudes etc.,) iii) Demographic (Family size, age, gender etc.,)
iv) Socio-economic (education, occupation. income etc.,).
Sinha (1972) emphasized the importance of segmenting and delineating the market
segments is must for an advertising campaign to succeed and accomplish its objectives. The
segmentation process could be done based on i) Consumer Information (type, number, sex,
age, socio-economic profile, location, shopping habits etc,.) ii) Distribution Information
(types, number, location and importance of the outlets or shops), iii) Sales Information
(trends, seasonal variations, competitors, substitute products etc,.) and iv) Attitude
Information. This is a necessary step that must precede any marketing activity especially the
advertising campaigns.
Aaker (2000) defined market segmentation as the process of identification of
customer groups that respond differently than do other customer groups to competitive
strategies. A segment needs to be large enough to support a unique business strategy that in
turn needs to be effective with respect to the target segment to be cost effective. The
variables to segment the markets may be based on i) Customer characteristics, ii) Product
related variables, iii) Benefits sought, iv) the Competitors
In this study, the segmentation of the market was done based on certain variables
such as attitudes towards a brand, advertising or promotions, willingness to pay premium
price for a brand, switching behaviour in the cases of non-availability, increase in the price
and absence of promotions in a brand etc,.
Consumer
Bhatt (1985) explained that consumer is an individual who consumes goods, whether
manufactured by business unit or created by nature such as air, water etc and utilities offered
by the government, business organizations like hospitals, religious, educational and other
voluntary organization etc.,
The Consumer Protection Act, (1986) defined consumer as any person who buys
any goods for a consideration paid or promised or partly paid and partly promised or any

system of defined payment and included the user of such goods other than the person who
buys such goods for a consideration paid or promised or partly paid and partly promised or
any system of deferred payment when such use is made with the approval of such person but
does not include a person who obtained such goods for resale or for any commercial purpose.
According to Kotler (2000) consumers included all the individuals and households
who buy or acquire goods and services for personal consumption.
In this study, the households consuming tea or coffee or both are regarded as the
consumers.

Narvar and Savitt (1971) indicated that the process of buying behaviour meant the
steps either implicit or explicit which every buyer pass through in making a decision, to
accept or reject products to fulfill needs. The process consisted of four sequential stages i.e.,
problem recognition, search, choice, and post-decision evaluation.
Mehta (1974) defined buying behavoiour as the search of alternatives, evaluation of
alternatives, choice decision and pot purchase feelings and reactions.
According to Markin (1982) buying behaviour meant human activities in the
consumption role. The acts of individuals and organizations directly involved in obtaining
and using goods and services included the decision making process. This includes problem
recognition, search for alternatives, evaluation and assessment of options, decision to by,
postpone, or search further and post decision evaluation.
According to Gupta and Singh (1989). Consumer behaviour referred to selection of
specific brand of a product out of the available brands in the market by considering their various
attributes such as size, texture, material, taste, hardness, price, name and distribution.
According to Basker Iyer (1990), consumers behaviour referred to selection of
specific brand of a product, out of the available brands in the market by considering their
various attributes, price, name and distribution.
Sutherland (1993) described newer measures to evaluate the impact of the
advertisements in the consumers buying behaviour. The measures are broadly classified into
two categories viz., i) Brand-focused measures which include brand awareness, brand image

and brand attitude/purchase intention; and ii) Ad-focused measures which include ad
recall/recognition, correct branding and message take-out.
Naik (1994) defined buying behaviour as the influence of numerous uncontrollable
components such as product, price, promotion and distribution.
Marketing Mix
Ramaswamy and Namakumari (1990) defined the marketing mix as the judicious
blend of four elements viz., product, distribution, promotions and pricing and it is the sole
vehicle for creating and delivering customer value.
Promotional Mix
Prasad and Kumari (1985) described the elements of a promotional mix viz.,
advertising, personal selling and sales promotion activities, the point-of-purchase displays,
coupons, premium offers, demonstration and trade shows.
Batra et al., (1996) described promotional mix as Communication Mix which
constitutes advertising, sales force, publicity or public relations, various consumer and trade
promotions and direct marketing.
Sundara and Shailaja (2000) defined promotional mix as a subset of marketing mix
where the marketing manager is attempting to achieve optimal blending of various elements
in order to accomplish promotional objectives. It is the blend of advertising, personal selling,
sales promotions and public relations.
Advertising
Ghosal (1972) mentioned that the purpose of advertising is to sell satisfaction to a
generally dissatisfied or at least under-satisfied consumer. The biggest and the most
important job that advertising must do is to persuade large number of people in terms of their
felt or latent needs on behalf of the particular satisfaction advertised. He emphasized that
advertising product benefits that do not relate to the consumers needs are almost as bad as
advertising product benefits that do not exist at all.
Vyas (1987) mentioned that advertising is a vital part of the business game plan. It
serves as a vital link in the marketing practices through which increased brand awareness and
sales, higher prices, greater percentages of market share and improved profitability could be
achieved by any business firm. The order of allocation of the advertising budget for

commercial advertisements might be television, followed by newspapers (both national

and/or regional), radio and certain magazines to assure successful marketing practices of any
company.
Sundara and Shailaja (2000) defined advertising as a paid non personal
communication through various media and consists of those activities by which visual and
oral messages are addressed to selected public for the purpose of informing and influencing
them to buy products or services or to act or to be inclined favourably towards ideas, persons,
trade marks or institutions featured. They aim at commiting producers educating the
consumers, supplementing the salesmen converting the dealer to eliminate the competitors
and above all serve as a link between the producers and the consumers.
American Marketing Association (2001) defined advertising as a paid, non-personal
presentation of ideas,
Sales Promotions
Parish (1973) outlined that several characteristics of the agricultural produces like
differentiability and high (positive) income elasticity make them favorably disposed to
advertising or promotion and results in increased sales of the products. He concluded that
processed food products closely fit to this statement.
Balarami Reddy (1983) reported that promotional activities were needed to make
farmers and dealers aware of the expected acreage under cotton cultivation, expected
quantity of production, expected demand and supply of a particular variety as there was no
organized agency to supply reliable information. The promotional activities, in his opinion,
make the producers well informed about the market conditions and bridge the
communication gap between the producers and the consumers.
Halliburton and Henneberry (1993) reported that consumer promotion for the US
peanuts under the Targeted Export Assistance (TEA) program comprised of branded and
generic promotions were taken up in the export markets. They include POP, in-store
promotions and mass media campaigns. The promotional activities were expected to have
long-term effects in market share of US peanuts in their foreign markets.
Shekar (1996) studied the requirement of information systems in effective
promotional management for mass consumption products. To create successful promotional
programmes aiming at a particular group of consumers needed a strong support by the

information systems for the companies to be aware of potential buyers, their nature,
psychographic profile, views, perceptions, attitudes and motives affecting the response of the
consumers towards the promotional activities.
Sundara and Shailaja (2000) defined sales promotions as the set of activities that are
aimed at promoting sales of a product or service in the short-run among consumers and
dealers.
In an anonymous report it was expressed that many brand managers are forced to
focus on short-term goals such as market share and profits. Many programs that are
implemented to boost short-term sales or market share may be detrimental to the long-term
viability of the brand. The author quoted that Proctor & Gamble had started to test market a
program to move away from using coupons to a system of every day low prices. This is, in
part, because consumers may become loyal to the coupon or promotion and not to the
product itself. Constant promotional programs erode margins and eventually brand loyalty.
Ultimately, brand equity is damaged.
Advertising Effectiveness
An anonymous author (1984) mentioned various heuristic models for evaluating
advertising effectiveness. One of the models is Advertisements Function Percent which
includes i) loyalty constant (=[Current Loyalists / past Loyalists]*100) and ii) Potential Ratio
(=[Sales Potential / Market Potential]*100). The other models include Percentage
Promotional Effort (the ratio of Companys promotional expenditure in advertising to the
Industrys promotional expenditure in advertising) and Advertising Effectiveness (=100
[Percentage Promotional Effort Advertisement Function Percent])
Sutherland (1993) contradicted with the traditional measures of advertising
effectiveness such as ad recall, ad recognition, message take-out, brand awareness, brand
image and purchase intention and suggested three new and important measures to evaluate
the effectiveness of advertising viz., i) spontaneous brand awareness, ii) image attribute
association, and iii) consumers overall attitudinal disposition towards buying the brand (their
purchase intention).
Blankenship and Breen (1999) narrated the use of overall marketing measurements
that include consumer tracking studies such as brand awareness, recall of advertising,

purchase behaviour, product satisfaction and intent to purchase and their timings in
constantly managing the marketing programmes and their effectiveness at different periods.
Jaffarulla (2000) mentioned that the criteria of measuring effectiveness of
advertisements are increased sales, change in consumer awareness, his knowledge, attitude
and behavioural and psychological responses towards the brand. He mentioned various
methods to test the effectiveness of advertising broadly classified into pre-testing and post
testing methods. The technique includes a wide range of tests such as i) Cognitive tests which
include readership or viewership measurements for magazines and broadcast media and
awareness or recall measurements; ii) Affective tests which include attitudinal and opinion
measurements; and iii) Conative (Motive) tests which include consumers intention to buy
and inquiry measurements.
Brand

Kotler (1991) defined a brand is a name, term, symbol or design or a combination of

them which is intended to identify the goods and services of one seller or group of sellers and
to differentiate them, from those of the competitors.
Brown (1992) took a broad approach to these concepts in defining a brand as nothing
more or less than the sum of all the mental connections people have around it.
Stanton et al. (1996) defined a brand as a name, term, design, symbol or any other
feature that identifies one seller's good or service as distinct from those of other sellers.
Given by Wood (2000), the integrated definition considered a brand as a mechanism
for achieving competitive advantage for firms such as in terms of revenue, profit, added
value or market share, through differentiation.
Branding
Devi (2001) defined branding as the management process by which a product is
branded and it is a general term covering various activities such as giving a brand name to a
product designing a brand mark and establishing and popularizing it.
Arruda (2003) described three Cs of branding which are necessary to make a
strong brand viz., i) Clarity, ii) Consistency, and iii) Constancy in all of its offerings.
Brand Awareness
Rossiter and Percy (1987) described brand awareness as being essential for the
communication process to occur as it preceded all other steps in the process. Without brand

awareness occurring, no other communication effects could occur. For a consumer to buy a
brand they must first be made aware of it. Brand attitude could not be formed, and intention
to buy could not occur unless brand awareness has occurred.
Aaker (1991) defined brand awareness as the ability for a buyer to recognize or recall
that a brand is a member of a certain product category.
Keller (1993) mentioned that high levels of brand awareness and positive brand
image should increase the probability of brand choice, as well as produce greater consumer
(and retailer) loyalty and decrease vulnerability to marketing actions.
Rossiter and Ang (1993) defined brand awareness as the consumer's ability to
identify the brand as being a member of the product category.
Macdonald and Sharp (1996) proposed that brand awareness was found affecting
the consideration set of the consumers in case of several brand choices, behaviour of the
consumers buying only brands that were known to them and the perceived quality of the
brands especially in the case of low involvement products.
Kania (1998) mentioned that brand awareness was the ability of buyers to recall or
recognize the brand within a certain product category. The measures included in the
awareness were top-of mind recall, unaided recall and aided recall.
Silverman et al., (1999) mentioned that brand awareness related to the strength of a
brand in memory, and the likelihood and ease with which the brand would be recognized or
recalled under various conditions.
Aaker (2000) regarded brand awareness as a 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 for recall
at the time of purchasing process. Apart from the conventional mass media there were other
effective means to create awareness viz., event promotions, publicity, sampling and other
attention-getting approaches.
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.

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

asset but not sufficient for building strong brand equity. For example, a brand could be well
known because it has bad quality. However, a strong brand must have higher awareness than
a weak brand.
Srinivasan et al. (2001) proposed that brand awareness could play a dominant role in
brand choice if the customer has strong awareness of some brands but not of other brands, in
part because brands with little awareness are unlikely to be considered for purchase. In
addition to being a powerful driver of brand purchase, a high level of brand awareness in a
product market will encourage the trade to stock the brand, leading to high brand availability
and, in turn, high brand choice probability. If the customer is aware of the brand, the
customer has perceptions (associations or image) toward the brand.
Bristow et al., (2002) mentioned the brand name as a node to which the linkages or
the brand associations might be linked. As a node is activated, initially by an external cue,
associated nodes are also activated through the set of linkages in place, and the final set of
information recalled is based on the particular path of nodes and linkages activated in the
given situation. Thus brand name might be part of several different sequences, depending
upon the activated path.
Brand Knowledge
Brand knowledge is conceptualized by Keller (1993) as consisting of a brand node in
memory to which a variety of associations are linked
Brand Identity
Kania (1998) defined brand identity as the collection of images, words, ideas and
brand associations that form the perceptions of the brand in the mind of the prospect or
customer.
Brand Loyalty
Aaker (1991) defined brand loyalty as the attachment that a customer has to a brand.
Kania (1998) defined brand loyalty as the customers level of commitment or
attachment to a brand in cases of price competition and other competitive threats.
Keller (1998) proposed a significant concept that sometimes brand loyalty was
excluded from the conceptualization of brand equity, because consumers may be in the habit
of buying a particular brand without really thinking much about why.

Haynes et al (1999) reported in their study that market fragmentation and brand
proliferation from any company would leave its brand loyalty eroded.
Aaker (2000) referred brand loyalty to as the resistance to switching. It can be based
on simple habit (no motivation to change) or preference (by genuine liking, perhaps based on
past use experience) or switching costs. He revealed several advantages of loyalty of a brand
viz., i) it reduces marketing costs of doing business since existing customers are easy to hold;
ii) it acts as an entry barrier to competitors; iii) it provides trade leverage as strong brands
often get preferred shelf space because of customers preference; iv) it ensures a large,
satisfied customer base and provides an image of a brand as an accepted, successful,
enduring product; and v) it provides some breathing time for the firm to respond to
competitors threats.
Brandt (2000) in his White paper on Loyalty narrated that consumer loyalty had two
dimensions viz., attitudinal loyalty and behavioural loyalty. In attitudinal loyalty, the
intentions of the consumers to buy repeatedly the same brand or products from a company,
the willingness to recommend it to others, strong preference or commitment towards the
company or the brand, little or no motivation to seek alternative brands and resistance
towards the offers of the competitors and giving positive word-of-mouth communication
were covered. The behavioural loyalty included actual repeat purchase of the brands, renewal
of contracts, subscriptions and membership arrangements etc,.
Devi (2001) described a logical order of branding decisions to be carried out by the
brand managers from creating brand awareness and ultimately leading to brand loyalty as
following stages: i) Non recognition of a brand by the consumers, ii) Brand recognition /
Brand awareness, iii) Brand Preference, iv) Brand Insistence, and v) Brand Loyalty.
Yoo and Donthu (2001) referred brand loyalty to the tendency to be loyal to a focal
brand, which is demonstrated by the intention to buy the brand as a primary choice.
Burke Secure Customer Index which measures the loyalty component of the brand
equity index comprises three critical components: i) the percentage of customers who are
very satisfied; ii) the percentage of customers who will definitely recommend the company to
others if the occasion arises; and iii) the percentage of customers who will definitely continue
to use the brands of the company in future.

Perceived Quality
Macdonald and Sharp (1996) reported in their study that just being known
dramatically affected their evaluation of a brand even though the consumers had neither
bought nor used the brand before. The findings was found fit for a low involvement product
familiarity had a greater magnitude of effect on the quality perception of a brand than either
price or packaging.
Yoo and Donthu (2001) mentioned that perceived quality items to assess consumers'
subjective judgment about a brand's overall excellence because perceived quality represents
overall quality rather than individual elements of quality.
Keller (1993) suggested that strong, favorable and unique brand associations could
enhance brand preference and favorably affect brand choice probability. Hence, there is a
differential effect of brand knowledge on consumer response to the marketing of a brand. He
classified brand associations into three major categories: attributes, benefits, and attitudes.
Further, he distinguished attributes into product-related attributes and non-product-related
attributes. Similarly, he distinguishes benefits into functional benefits (corresponding to
product-related attributes), symbolic benefits (corresponding to non-product-related
attributes), and experiential benefits (corresponding to both product-related attributes as well
as non-product-related attributes).
Park and Srinivasan (1994) reported that brand image associations were largely
product category specific and measures should be customized for the unique characteristics
of specific brand categories.
Aaker (1996) postulates brand associations as consisting of twelve elements and then
organizes them around four categories: brand-as-product, brand-as-organization, brand-asperson, and brand-as-symbol.
Silverman et al., (1999) defined brand associations as the myriad nodes that are
linked to the brand in memory (i.e., product related attributes, price, user and usage imagery,
and so on).
Aaker (2000) product attributes and customer benefits are the associations that have
obvious relevance because they provide a reason to buy and thus a basis for brand loyalty.
Chen (2001) in his study, to identify the typology of brand association and examine
the relationship between association characteristics and brand equity used a free association

procedure. He identified two types of brand association. One was product association
including functional attribute association and non-functional attribute association. The other
was organizational association including corporate ability association and corporate social
responsibility association. He suggested that marketing managers should increase the
building of brand-related associations via advertising in the consumers memory and to
choose a unique position to increase the brand equity and build a competitive advantage.
Brand Image
Levy (1958) defined brand image as a symbol has been defined as a "thing which
stands for or expresses something else"; in casual usage it has been said to be a general term
for all instances where an object, action, word, picture or complex behavior is understood to
mean not only itself but also some other ideas or feelings.
Pohlman and Mudd (1973) works reflects on the symbolic nature of brands and
products, adopting such labels as "symbolic utility".
Gensch (1978) made this separation proposed that product perception consisted of
two components, the measures of the brand attributes and the "image" of the brand. He
defined "image" as a purely abstract concept that incorporates the influences of past
promotion, reputation and peer evaluation of the product.
Kapferer (1992) defined brand image as a reception concept or the manner in which
the public decodes all the signals such as brand name, visual signs, products, advertising,
sponsorships, patronage, press releases etc., emitted by the brand through its products,
services and communication programmes on the receivers side.
Keller (1993) defined image as perceptions about a brand as reflected by the brand
associations held in consumers memory. Brand image are referred to as the perceptions
about the brand as reflected by the brand associations held in consumer memory following an
associative network model of memory.
Romaniuk (2001) in his study observed that the former users of a brand were more
likely to associate it with a positive image attribute than those who had never tried the brand.
Brand Equity
Leuthesser (1988) offers a broad definition of brand equity as the set of associations
and behaviour on the part of a brand's customers, channel members and parent corporation

that permits the brand to earn greater volume or greater margins than it could without the
brand name.
Farquhar (1989) defined brand equity as the value endowed by the brand to the
product.
According to Aaker (1991), brand equity provides value to customers by enhancing
their interpretation and processing of information, confidence in the purchase decision, and
satisfaction. Brand equity also provides value to the firm by enhancing efficiency and
effectiveness of marketing programs, prices and profits, brand extensions, trade leverage, and
competitive advantage.
According to Farquhar et al., (1991) brand equity has been examined from two
different perspectives - financial and customer based. The first perspective of brand equity is
the financial asset value it creates to the business franchise for which several accounting
methods for appraisal of the asset value of a brand name were developed and tested
previously. He defined brand equity as the competitive advantage of firms that have brands
with high equity includes the opportunity for successful extensions, resilience against
competitors' promotional pressures, and creation of barriers to competitive entry.
Kamakura and Russell (1991), defined customer-based brand equity as the
differential effect of brand knowledge on consumer response to the marketing of the brand
Winters (1991) reported some recent advances in the brand equity measures such as
Image power, EquiTrend, The Conversion model, Equity Monitor, Brand Equity Index
developed by the market research organizations of repute that are professionally engaged in
the brand consultancy.
Keller (1993) defined customer based brand equity as the differential effects of brand
knowledge on consumers response to the marketing of the brand. In spite of the increasing
importance of the brand equity concept, an instrument to measure brand equity from a
customer perspective has been lacking. Because the source of brand equity is the customer
perceptions and it is important for managers to be able to measure and track it at the
customer level.
Pope (1993) discussed that brand equity stems from the greater confidence that
consumers place in a brand than they do in its competitors. This confidence translates into
consumers' loyalty and their willingness to pay a premium price for the brand.

Rossiter and Ang (1993) the three essential properties of high-equity brands are
translated and extended into accompanying propositions as follows: (a) high level of brand
awareness (distinctive and salient) (b) brand imagery (vivid and attribute-like or globally
favorable) (c) brand attitude (preferential: high value and low substitutability).
Rubinson (1993) presented the transition of the concept of brand equity in the recent
decades. In 1980s, when the concept was nascent, the brand extension and acquisitions were
popular (where the single brands were transformed into brand portfolios) and their impact in
the brand equity was not studied through structured qualitative or quantitative research. In the
1990s the key challenges for the brand managers were managing marketing assets,
balancing trade power and preserving the fast eroding brand loyalty due to the brand
proliferations and their effect on the brand equity. Today, brand equity simulation models
are available to track and manage this valuable asset.
Na et al.,(1993) built up a picture of brand equity from multiple dimensions of
consumer perception, awareness and image and defined brand power as the function of brand
awareness and brand image power.
Park and Srinivasan (1994) defined brand equity as the added value of a brand to
a product.
Lassar, et al.,(1995) conceptualized that brand equity stems from the greater
confidence that consumers place in a brand than they do in its competitors. This confidence
translates into consumers loyalty and their willingness to pay a premium price for the brand.
They formulated a customer-based brand equity scale based on the five underlying
dimensions of brand equity: performance, value, social image, trustworthiness and
commitment. They viewed customer-based brand equity as, firstly, the driving force for
incremental financial gains to the firm and secondly, managers did not have a customerbased measure to evaluate brand equity. They recommended that firms measure the equity
associated with their brands on a regular basis and the measurement of brand equity would
enable companies to evaluate their marketing programs. Also, if the brand equity is seen to
suffer, further feedback can be obtained from consumers. This feedback will aid in
identifying product performance problems, identifying advertising or positioning problems
and providing feedback to the firm's employees on where improvements need to be made.

Feldwick (1996) simplifies the variety of approaches, by providing a classification of

the different meanings of brand equity as:

the total value of a brand as a separable asset - when it is sold, or included on

a balance sheet;

a measure of the strength of consumers' attachment to a brand;

a description of the associations and beliefs the consumer has about the brand.

Hutton (1997) mentioned that the need of defining, measuring and extending brand
equity related to organizational-buying situations. Their report said that brand equity existed
in industrial markets, in terms of buyers willingness to pay a price premium for their favorite
brand, recommend the brand, and extend from the brand to other products with the same
brand name. The better known their favorite brand was, the more likely respondents were to
engage in the three brand-equity behaviors.
Kania (1998) narrated that customers perceived that a product backed by a valued
brand is worth more than competing products. Such a brand therefore increases repeat
purchases and perhaps the price customers are willing to pay. The quality of a brand that
causes it to deliver these bottom line benefits was called brand equity.
Silverman et al., (1999) presented another dimension of brand equity i.e., marketbased brand equity (based on the marketplace outcomes of brand equity viz., Financial World
ratings and annual sales) and mentioned other sources of brand equity such as consumer
cognitions, management creativity, corporate structure, etc. that may ultimately impact
market-based outcomes. In their study they conceptualized that if consumer perceptions of
brands are reflected by purchase decisions, then the measures of those perceptions should
also correlate with market-based outcomes and related consumer-based sources of brand
equity to market-based outcomes.
Aaker (2000) defined brand equity as a set of assets and liabilities linked to a brands
name and symbol that add to or subtract from the value provided by a product or service to a
firm and or that firms customers. The assets on which brand equity is based are perceived
quality, brand awareness, brand associations and brand loyalty.
Chan-Olmsted and Kim (2000) in their study assessed the brand image of Public
Broadcasting Service (PBS) in a multi-channel media environment by comparing viewers
perceptions of PBS to competing cable networks and by exploring the perceived value of

public television among its viewers thereby developed a model for estimating the brand
equity for the PBS brand.
Prasad and Dev (2000) formulated a numerically expressed brand-equity index,
which was a compilation of the actual customer data on customer satisfaction, intent to
return, perception of price-value relationship and brand preference, as well as a simple
measure of customers top-of-mind awareness of a hotel brand.
Wood (2000) narrated that the marketing mix for any brand should function in a way
that supports a brand message and the short- term sales promotions should not be used
frequently for a premium brand if necessary with conscious consideration.
Kish et al., (2001) in their study on the measurement and tracking of the brand
equities of Pepsico Inc. brands, suggested a model consisting two general factors that are
believed to contribute to a favorable brand-consumer relationship across product categories:
1. Recognition - How broad and deep is a brand's awareness ?; and
2. Regard - How do people feel about the brand?
Further refinement of the model yielded four regard components - brand reputation,
affiliation, momentum, and differentiation - and a name, EquitrakTM.
Mackay (2001) applied the existing consumer based measures of brand equity to a
financial services market (credit cards) and explained that market share was used as a
common indicator of brand equity whereas brand recall and familiarity, however, were found
to be the best estimators of brand equity in the credit card market.
Srinivasan et al. (2001) proposed Equitymap, a new approach for measuring,
analyzing, and predicting a brands equity using a multi-attributed probabilistic choice
model, estimated brand equity at the individual customer level in a product market. It defines
brand equity at the firm level as the incremental profit per year obtained by the brand in
comparison to a brand with the same product and price but with minimal brand-building
efforts. They conceptualized brand equity as arising from the following three sources:(i)
increased brand awareness, (ii) enhanced attribute perceptions, and (iii) favorable nonattribute preference.
Yoo and Donthu (2001) developed a multi step study to develop and validate a multidimensional consumer-based brand equity scale (MBE) drawn from Aaker's and Keller's

conceptualizations of brand equity. The MBE comprised of 10 items representing the three
dimensions of brand loyalty (attitudinal loyalty), perceived quality, and brand awareness or
associations.
Myers (2003) described the importance of the attributes of a brand in managing the
brand equity for the brand. He conceptualized brand equity consisting three components viz.,
i) perceived value or the value of the brand which cannot be explained by price or promotion;
ii) brand dominance ratio or the objective value of the brands ability to compete on price;
and iii) intangible value as the utility perceived for the brand minus objective utility
measurements. He suggested that brand managers should work in a way in which the
attributes attached to the brand by the marketers match with those perceived by the
consumers in the market place.
Rajendran (2003) described in his report of the fifth national retail summit held at
Mumbai, the excerpts of the speech of brand experts. According to the report, a brand expert
the brand equity may be channelised to deliver the manufacturers power to the consumers in
the context of Manufacturer-Consumer relationship. Where there is a reseller in between, as
is the case in most of the time, channelising equity and delivering partnership advantage
comes into play in the Manufacturer-Reseller relationship. Finally, in the reseller-consumer
relationship, the resellers equity delivers the resellers power to the consumer.
According to the Burke ICE Research (Information, Communication and
Entertainment), a popular marketing research company, a brand equity index, best described
as a molecule comprised of three components, - like atoms - so tightly interrelated. The three
"atoms" interacting with and affecting each other are customer loyalty, image and value.
Measuring brand equity allows a company to establish a baseline and track changes in its
brand equity over time. If a company consistently works to improve the strength of its
brands, it must trace progress, or risk flying blind. Changes in a quantitative measurement of
brand equity can show the company the effects of its works viz., advertising, promotions,
public relations, and research and development, and greatly aid in setting marketing and
management priorities in the next business planning cycle. A company may want to measure
its brand equity to aid in assigning a monetary value to a brand.
An anonymous author described brand equity consisting of ten components that, he
describes as Brand Equity Ten, grouped into five broad categories viz., 1. Loyalty (Price

Premium, Customer Satisfaction); 2. Quality and Leadership Measures (Perceived Quality

and Leadership/Popularity); 3. Associations and Differentiation measures (Perceived Value,
Brand personality and Orgaizational Associations); 4. Brand Awareness; and 5. Market
behaviour measures (Market Share, Price and Distribution).
Business Markets
Kohli and Jaworski (1990) in their study on identifying difference between the
consumer and business markets in the context of market orientation of a firm, proposed a
formal definition of market orientation; it is: the organisation-wide generation of market
intelligence pertaining to current and future customer needs, dissemination of the intelligence
across departments, and organisation-wide responsiveness to it. They observed that the
process of market orientation was distinct for the two categories and the efforts must be taken
to handle the two categories with different marketing objectives and implementation of the
marketing plan.
Ramaswamy and Namakumari (1990) defined a business buyer as the one who
buys goods and services for any of the following purposes: i) for making other goods and
services, ii) for reselling, iii) for use as consumables in the organization.

CHAPTER III
DESIGN OF THE STUDY
In this chapter, the procedure followed in the selection of the study area, sampling
procedure, selection of the respondents, collection of data and the various tools of analysis
used are presented in this chapter.

Selection of the Study Area

The study area selected was Coimbatore. The city was purposively selected as
proposed by the Amalgamated Bean Coffee Trading Co Ltd. The sample size of the study
was 260 households and 40 sample units in the business markets comprised of bakeries,
hotels, etc., selected randomly as described below:
S.No

Area

Number of Households

1.

Ramanathapuram

20

2.

Ram Nagar

20

3.

Singanallur

20

4.

R.S.Puram

20

5.

Kovai Pudur

20

6.

Raja Street

20

7.

Vadavalli

20

8.

Devanga H.S Road

20

9.

Sulur

20

10.

Pappa Naiken Palayam

20

11.

Tatabad

20

12.

Saibaba Colony

20

13.

Ganapathi

20

Total

260

Data Collection
A comprehensive, well-structured interview schedule was prepared and the necessary
primary data were collected by personal interview of the respondents. The respondents were
detailed about the objectives of the study to get their co-operation while collecting the
information. Two separate interview schedules were prepared, one for the consumers and the
other for business markets. The interview schedule for the consumers was designed to
contain particulars such as general characteristics, details on coffee drinking behaviour,
brands used, purchase decisions, attitudes towards the brands and attitudes towards the sales
promotions, etc. The interview schedule for the business market contained questions about
the type of the business, experience in the business, brands used and margin etc,. The data
collected were tabulated, processed and subjected to statistical analysis.

Period of the Study

The reference year for the study was the calendar year 2003 and the collection of data
from the sample respondents was taken up during the months of June-July 2003.

Tools of Analysis
1. K-Means Cluster Analysis
This procedure attempts to identify relatively homogeneous groups of cases based on
selected characteristics, using an algorithm that can handle large numbers of cases. However,
the algorithm requires to be specified the number of clusters a-priori. The initial cluster
centers can be specified if known. There are two methods for classifying cases, either
updating cluster centers iteratively or only classifying can be selected. The former procedure
was adopted in this study and the cluster membership of each respondent, the distance
information, and the final cluster centers were saved as new variables for reference and cross
checking. Analysis of variance F statistics was also done to know the relative important of
the selected variables in classifying the consumers. Based on the selected variables, the
respondents were segmented into three discrete clusters featuring unique traits. The epitome
of the K-Means Cluster analysis, the syntax and the output of the analysis are explained in
the Annexure II.

2. Conventional analysis
Percentage analysis was used to study the clusterwise characteristics of the consumers
such as the coffee drinking behaviour of the households, awareness of different brands,
purchase decisions, monthly household income etc. The results are used to describe each
cluster based on the said variables individually.
3. Multi Dimensional Scaling Technique
The Multi Dimensional Scaling technique is used to measure on a five-point
scale

(5 - Strongly Agree, 4 Agree, 3 Not Sure, 2 Disagree, 1- Strongly

Disagree), the attitudes of the consumers towards the brands on a set of variables viz.,
willing to continue the same brand in future, willing to recommend it to others,
willing to pay premium price for the brand etc., and with regard to their attitudes
towards the sales promotions or advertisements of the brands.
A similar five point scale was used to measure the rating of several brands by the
consumers by making them choosing their response from an array of responses (ranging from
Excellent, Good, Neutral, Poor and Very Poor) for certain quality parameters such as aroma,
taste, strength, popularity and the like. For certain quality parameters like price, availability
and sales promotions the responses were collected using a similar but with a different set of
responses (Highly Satisfied, Satisfied, Neutral, Dissatisfied and Highly Dissatisfied).
A three - point scale (Very Important, Important and Not So Important) was used to
rank the quality parameters by the consumers and the results were analyzed for each cluster
individually for cluster description.
For the business markets, a similar three - point scale (Very Important, Important and
Not So Important) was used to rank the factors like supply of the materials, cuppage,
availability, advertising support and the promotional programmes.
Another three-point scale (Satisfied, Neutral and Dissatisfied) was used to measure
the satisfaction levels of the business market respondents towards the above factors.

4. Methodology for computing Brand Equity

The operationalization and the measurement of the components of brand equity are
given in the Table 3.1. The components were indexed keeping 100 as ideal. The overall
Brand Equity Index is calculated by adding all the three components. The total number
obtained is compared against the ideal brand equity index of 300.

Table 3.1 Operationalizing and Measuring the Components of Brand Equity

Components

Variables included
% of respondents who are aware of Coffee Day

Measurement

Brand Awareness Index

I. Awareness Index (Expressed as a number taking 100 as ideal)

I. Brand Awareness
(Unaided + Aided)

% of respondents willing to continue the brand (+)

% of respondents willing to recommend it to others (+)
% of respondents regard the brand as value for money (+)
% of respondents willing to pay premium price (+)
% of respondents willing to stick to the brand

II. Brand Loyalty

(% of respondents who
strongly Agree &
Agree on a 5 pt. scale)

if price is increased (+)

in the absence of sales promotions (+)
in the case of non-availability.

Loyalty Index = Total / 7

(Expressed as a number taking 100 as ideal)

II. Loyalty Index (Expressed as a number taking 100 as ideal)

III. Brand Opinion
(Perceived Quality)
(% of respondents who are
Highly Satisfied, Satisfied
and rate the brand Excellent,
Good - On a 5 point scale)

% of respondents who are Highly Satisfied and

Satisfied with the attributes of the brand (+)
% of respondents who rate the brand as Excellent and
Good on the attributes (No. of Attributes = 10)

Quality Index = Total / 10

III. Overall Quality Index (Expressed as a number taking 100 as ideal)

Calculating Brand Equity Index

Brand Equity Index

Brand Awareness Index (I) + Loyalty Index (II) + Overall Quality Index (III)

(Expressed as a number taking 300 as ideal i.e. Brand Equity for an ideal brand is 300)

CHAPTER IV
DESCRIPTION OF THE STUDY AREA
Demographic Profile of Tamil Nadu
The total population of Tamil Nadu stood at 62,110,839 as per the Census of India
2001. In terms of population, it holds the sixth position among the States and Union
territories in the country. Tamil Nadu constitutes 6.1 per cent of Indias total population and
is the sixth largest state in terms of population. The sex ratio of Tamil Nadu (986) is higher
than Indias sex ratio of 933. The decadal growth rate was lowest at just 4.3 per cent in three
districts namely Kanniyakumari, Sivagangai and Theni and was highest at 22.4 per cent in
Thiruvallur district. The sex ratio (i.e., the number of females per thousand males) of
population in the State has improved from 974 in the previous census to 986 in the present
census. The sex ratio was lowest in Salem and Dharmapuri at 929 and 938 (females per 1000
males) respectively. The literacy rate in the State has shown remarkable improvement. This
has increased to 73.47% when compared to 62.66% ten years back during 1991 Census.The
levels of literacy among males and females above seven years in the state were 82 per cent
and 65 per cent respectively. The literacy rates in the state were much higher than that in the
country which was 76 for males and 54 for females. The female literacy was 70 per cent or
more in seven districts namely Chennai, Coimbatore, Kancheepuram, Kanniyakumari,
Nilgiris, Tuticorin and Trichirappalli and was just less than 50 per cent in Dharmapuri district
alone. The state comprises of 30 districts as on date. The State is the third most urbanized in
the country only after Maharashtra and Gujarat with around 44 per cent of the population
living in the urban areas. The details on the urban and rural population of Tamil Nadu are
presented in Table 7.2 in the Appendix.
Among the six municipal corporations in the State, Coimbatore with a population of
9.23 lakhs takes the second spot after Chennai (42.16 lakhs) while Madurai (9.23 lakhs) is in
third place. Regarding the population growth rate, Salem has shown the highest growth rate
of 25.63%, followed by Tirunelveli, which has registered a growth rate of 21.11%.
Tiruchirappalli (15.64%) and Coimbatore (13.08%) have registered moderate levels of

growth. The information on the population and growth rate of major corporations is
presented in Table 7.5 in the Annexure I.
Profile of the District and Coimbatore City
Coimbatore District lies in the Western Part of Tamil Nadu bordering the Western
Ghats. The district is filled with naturally diverse eco system such as hills, plains, forests,
evergreen fields, drought prone areas, river bodies, tanks etc., The district has a geographical
area of 7471 Sq.km, which is divided into three Revenue Divisions, 9 Taluks, 19 Blocks and
482 Revenue Villages. Out of three Revenue Divisions, Coimbatore Division is industrially
developed because of the availability of copious water supply and power. It has attracted the
rural people of the district including the neighbouring districts for excellent employment
opportunities. Pollachi is predominantly agriculture and Tirupur partly agriculture and partly
rich in hosiery manufacturing. The rich black soil of the region has contributed to
Coimbatore's flourishing agriculture industry and, it is in fact served as a foundation for the
establishment of its famous textile industry.
Coimbatore City was constituted as a Municipality in November 1866 with a
population of 24,000 covering an extent of 10.88 Sq.km. Coimbatore Citys status has since
been elevated as a municipal corporation from 1.5.1981. The present population of the city is
approximately 13 lakhs including a floating population of around 1.5 lakh. The area of the
corporation is 105.60 Sq.km. The city is located at 432.00 m above the Mean Sea Level
(M.S.L). As it is exposed to the Palghat gap of the Western Ghats, it enjoys a salubrious
climate. The Coimbatore city is divided into four zones viz., North, South, East and West for
the ease of administration. Each zone is divided into 18 Wards under their jurisdiction.
Towards a sustained and strategic management of the scarce resources available in
the city, the Coimbatore City Corporate Plan (CCP) was devised in 1999 with the help of
World Bank under the purview of Tamil Nadu Urban Development Project II
(TNUDP II), Government of Tamil Nadu. The plan has a long term strategic view on the
development of the city for the next five years from 1999 to 2004 on the following core areas
of action.

Growth Patterns of the City

According to the Coimbatore City Corporate Plan (1999-2004), the city is growing in
the North, East and South directions along the major radial roads. In the past, the growth
direction was towards the East along the NH 47. However, with the establishment of
technical and educational institutions and mills along the Avinashi and Trichy roads and
roads leading to Maruthamalai hills towards the west also are developing gradually. Major
growth centers observed were presented in the Table 4.1. The areas are in the periphery of
the city along major roads connecting the city with other parts of the State and Kerala.
Madukkarai, Sulur, Peelamedu, Saravampatti are some of the centers earmarked as important
areas growing at a prospective rate.
Table 4.1 Growth Centres along Major Roads
Growth Centre

Road / Highway

Madukkarai & Kuniamuthur

Palghat Road

Sulur & Irugur

Avinashi Road

Palkalai Nagar

Marudamalai Road

Perur

Siruvani Road

Peelamedu & Chinniyampalayam

Avinashi Road

Saravanampatti

Mysore Road

Thudiyalur & Perianaickenpalayam

Mettupalayam Road
Source: Coimbatore City Corporate Plan (1999-2004), Coimbatore Municipal Corporation
The growth and expansion of the city and its adjacent areas are presented in the Table
4.2. The Coimbatore Urban Agglomeration was reportedly growing at a moderate 32 per cent
during the past decade and posted a healthy literacy level of around 86 per cent. The
peripheral areas like Goundampalayam, which topped the list of fast growing areas in the
Coimbatore U.A with 113 per cent percentage growth rate during the last decade,
Veerakeralam (about 90 per cent), Vilankurichi (about 78 per cent), Saravanampatti (64 per
cent), Narasimmanaicken palayam (58 per cent), Ashokapuram (53 per cent), Kuniamuthur
(about 50 per cent), Pallapalayam (about 44 per cent) and Madukkarai (42 per cent) were also
growing at a faster pace.

Table 4.2 Population, Percentage Decadal Growth 1991-2001, Sex Ratio, Literacy by Sex in Coimbatore In 2001
S.No

Size class and

name of
UA/City/Town

Civic status
of the City/
Town

Population

Percentage
Decadal
Growth
1991-2001

Sex
Ratio

Persons

Male

Female

1,446,034

743,161

702,873

32.49

Municipal
Corporation

923,085

476,056

447,029

Coimbatore U.A.

Literacy Rate
Person

Male

Female

946

86.01

90.62

81.15

13.08

939

87.51

91.34

83.46

1.

Coimbatore

2.

Kurichi

TP

76,794

39,301

37,493

18.52

954

88.12

93.15

82.85

3.

Kuniyamuthur

TP

56,901

28,882

28,019

50.52

970

83.56

89.31

77.65

4.

Goundampalayam

TP

46,984

23,877

23,107

113.52

968

85.52

90.30

80.55

5.

Madukkarai

TP

25,733

13,161

12,572

42.09

955

80.07

88.12

71.66

6.

Vadavalli

TP

24,700

12,339

12,361

--

1002

85.40

91.02

79.87

7.

Sulur

TP

24,359

12,465

11,894

23.56

954

85.63

92.04

78.95

8.

Periyanaickenpalayam

TP

22,921

11,956

10,965

27.04

917

86.43

92.44

79.88

9.

Kalapatti

TP

22,089

11,388

10,701

--

940

79.39

86.15

72.18

10.

Thudiyalur

TP

20,897

10,689

10,208

--

955

83.62

90.72

76.17

11.

Veerakeralam

TP

19,993

10,114

9,879

89.11

977

84.53

90.45

78.47

12.

Irugur

TP

18,602

9,367

9,235

--

986

79.95

88.12

71.69

13.

Saravanampatti

TP

17,643

9,095

8,548

64.08

940

86.11

91.20

80.63

14.

Vellalur

TP

17,294

8,696

8,598

20.20

989

69.95

75.60

64.20

15.

Kurudampalayam

CT

13,129

7,096

6,033

30.13

850

82.92

89.76

74.78

16..

Veerapandi

TP

12,141

6,410

5,731

30.20

894

76.99

84.21

68.90

17.

Kannampalayam

TP

11,890

6,136

5,754

--

938

86.04

94.26

77.33

18.

Narasimhanaickenpalayam

TP

11,005

5,570

5,435

57.85

976

86.51

91.84

81.03

19.

Chinnavedampatti

TP

10,349

5,323

5,026

33.47

944

78.08

87.44

68.11

20.

Ashokapuram

CT

9,676

4,922

4,754

53.44

966

90.17

93.34

86.86

21.

Vellakinar

TP

9,609

4,889

4,720

--

965

79.65

85.93

73.30

22.

Vedapatti

TP

9,545

4,897

4,648

--

949

75.02

81.33

68.42

23.

Pallapalayam

TP

9,498

4,763

4,735

44.76

994

84.70

92.09

77.34

24.

Vilankurichi

CT

9,122

4,653

4,469

77.82

960

87.48

92.53

82.18

25.

Perur

TP

7,937

3,972

3,965

16.33

998

76.27

84.34

68.10

26.

Ettimadai

TP

7,887

4,010

3,877

--

967

64.05

74.01

53.60

27.

Idikarai

TP

6,251

3,134

3,117

--

995

88.33

79.15

97.47

(Source: Provisional Population Totals : India . Census of India 2001, Paper 1 of 2001)

Land Use Pattern in the City

The total area developed for urban activities constitute around 81 per cent of the city
area and the balance constitutes of activities earmarked for vacant land, water bodies and
cultivation. The details of the various uses that the land area available in the city was put into
are presented in Table 4.3.
Table 4.3 Area Summary of Coimbatore City
Land

Area (Sq.km)

Developed land

81.00

Undeveloped Land

24.60

Total

105.60

Source: Coimbatore City Corporate Plan (1999-2004), Coimbatore Municipal Corporation

i) Residential Use
The residential development is spread over 65 Sq.km. The details on the proportion of
the residential area to the developed and total land area of the city are presented in Table 4.4.
Table 4.4 Proportion of the Residential Area in the City
Proportion

Percentage

Residential to Developed Area

80.57

Residential to Total Area

61.85

Source: Coimbatore City Corporate Plan (1999-2004), Coimbatore Municipal Corporation

High density of residential development is found in the older parts of the city
especially in the areas around Rengai Gounder street, Edger street etc. The densities are
growing in the fast developing areas like Ramnagar, R.S.Puram, Tatatbad, Race Course and
Saibaba Colony. These areas were well planned with a regular street pattern, well shaped
plots and spaces for public use unlike the areas in the older parts of the city and pave way for
new and increased urban settlements.

ii) Commercial Use

The Table 4.5 gives the information on the proportion of the commercial area to the
developed and total land area of the city.
Table 4.5 Proportion of the Commercial Area in the City
Proportion

Percentage

Commercial Area to Developed Area

2.92

Commercial to Total Area

2.34

Source: Coimbatore City Corporate Plan (1999-2004), Coimbatore Municipal Corporation

The main commercial area of the city is concentrated in the older parts of the city
around the Oppanakkara street, Rengai Gounder street, Big Bazaar street and the adjacent
areas of the Town Hall. The retail trade is concentrated along the D.B Road, Crosscut road,
Avinashi road upto Race Course road, Jail road and NSR road. Most of the wholesale
businesses and warehousing activities take place in the old city. These activities demand
substantial space in the prime areas and attract heavy vehicles thus adding to the problem of
congestion in the city.
Industrial and Other uses
The area under Industrial use is around 4.40 sqkm as inferred from the Table 4.6.
Table 4.6 Proportion of the Industrial Area in the City
Proportion

Percentage

Industrial area to Developed Area

5.43

Industrial area to Total Area

4.17

Source: Coimbatore City Corporate Plan (1999-2004), Coimbatore Municipal Corporation

The major industrial areas are Peelamedu, which houses an Industrial Estate,
Singanalur and Uppilipalayam. Most of the textile mills and Engineering units in the city are
located along Trichy road, Avinashi road and Mettupalayam road. The total area under
educational use is around 6.6 Sq.km, which are nearly 8.15 per cent of the total developed
area of the city.

Educational Use
Educational institutions are mainly concentrated towards the eastern part of the city,
with most of the Technical and Higher-Educational institutions being located along Avinashi
road and Mettupalayam road. The table 4.6 gives the details of the proportion of the area
used for educational purposes to the developed and total land area.
Table 4.7 Proportion of the Eduational Area in the City
Proportion

Percentage

Educational use to Developed Area

8.15

Educational use to Total Area

6.26

Source: Coimbatore City Corporate Plan (1999-2004), Coimbatore Municipal Corporation

The location of educational institutions on these roads is one of the main reasons for
the growth of the city along these major corridors which attracts the urban families to settle
down in the sub-urban areas.
Implications of the Growth Patterns of the City for the Branded Coffee Powder
Retailing Business
The Coimbatore Urban Agglomeration is expanding at a moderate level during the
past decade; the city and its surrounding areas post a healthy overall literacy level; with the
proliferation of educational institutions, the peripheral areas are fast developing and
attracting more middle class and affluent urban families to settle thereby offering good
opportunities of reaching a very important segment of the target market the literate middle
and upper class families for the branded coffee retailing business in the area.
As presented in the Table 4.8, the fast developing sub-urban areas also deserve a very
important place in future business plans reiterating the fact that there are good opportunities
besides concentrating in the core of the city. As the retail trade is concentrated in the areas
like R.S Puram and Sai Baba Colony, Tatabad and Crosscut road, they are also important.
There is also a healthy female literacy level which is very much conducive to reach another
important target segment for branded coffee powder retailing, the Literate Women, as in
many homes they are the decision makers regarding coffee.

Conclusively, the present situation seems amenable for implementing the marketing
communication efforts and successfully reaching their intended objectives of creating brand
awareness, achieving enhanced consumer reception and response through print media like
newspapers, magazines and other forms of literatures apart from the conventional radio and
television.

Figure 3.1 Maps showing Coimbatore District

Source: NIC, Tamil Nadu.

CHAPTER V
RESULTS AND DISCUSSION
The data collected during the survey were analysed and the detailed results are
presented in this chapter. The results are divided into four sections as follows:
I. Clustering or segmentation of the coffee consumers in the city and detailed
description of the clusters and their characteristics;
II. Estimation of brand equity of Coffee Day;
III. Effectiveness of the promotional programmes of Coffee Day; and
IV. Detailed description of the characteristics of the business markets in the city.
5.1.1 Clustering or segmentation of the coffee consumers of the city
The coffee consumers in the city were clustered using the K-Means Cluster analysis
and three distinct clusters were identified. The results are presented in the Table 1.

Table 1 Number of respondents in each cluster

S.No
1.
2.
3.

Number of
Respondents
19
1
(7)
108
2
(42)
133
3
(51)
260
Total
(100)
(Figures in parentheses indicate percentage to Total)
Cluster No.

From the Table 1 it is clear that the second and the third clusters were much larger
with 108 and 133 respondents respectively. The third cluster was almost half of the size (51
percent) of the total sample respondents followed closely by the second cluster (42 percent).
5.1.2 Clusterwise number of Coffee drinking households
The Clusterwise details on the number of coffee drinking households are presented in
the Table 2.

Table 2 Clusterwise number of Coffee drinking households

S.No

Particulars

1.

Households drinking Coffee

2.

Households drinking only Tea

Total

Cluster No.

Overall

18
(95)
1
(5)

99
(92)
9
(8)

126
(95)
7
(5)

243
(93)
17
(7)

19

108

133

260

(Figures in parentheses indicate percentage to Total)

From the Table 2, it can be inferred that 93 percent of the total households drink
coffee and 7 per cent of the total respondents drink only tea in their home. On an average,
more than 90 per cent of the households in all the three clusters were drinking coffee in their
home.
5.1.3 Drink Tea at Home (Only for the Coffee Consuming Households)
The details on the tea drinking behaviour of the coffee-drinking households are
presented in the Table 3.
Table 3 Drink Tea at Home (Only for the Coffee Consuming Households)
Drink Tea at
Home
No
1 Cup a Day
2 Cups &
more a Day
Occasional

N=243

Cluster No.
Overall
1
2
3
N=18
N=99
N=126
13
64
100
177
(73)
(64)
(79)
(80)
5
13
17
35
(27)
(13)
(14)
(12)
0
6
1
7
(0)
(7)
(1)
(2)
0
16
8
24
(0)
(16)
(6)
(6)
(Figures in the parentheses indicate percentage to N in each column)

It can be observed from the Table 3 that 12 per cent of the total coffee drinking
households were found consuming a cup of coffee per day and 6 per cent of them consumed
tea occasionally

followed by a meager 2 per cent of the coffee drinking households

consumed two cups of tea every day.

5.1.4 Type of Coffee used Regularly in the Clusters

The information on the type of coffee consumed by the coffee drinking households
are presented in the Table 5.1.4
Table 4 Type of Coffee Used regularly
Type of Coffee
Used regularly
R&G Coffee
Packaged Coffee
Instant Coffee
Total

Cluster No.
Overall
1
2
3
N=243
N=19
N=108
N=133
13
51
94
158
(72)
(50)
(75)
(65)
0
10
1
11
(0)
(10)
(1)
(4)
3
23
26
55
(17)
(25)
(22)
(24)
16
84
121
221
(89)
(84)
(98)
(92)
(Figures in the parentheses indicate percentage to N in each column)

The most popular type of coffee consumed by the regular coffee drinking households
was the roast and ground type (65 per cent) followed by the Instant coffee 24 per cent and
packaged coffee 6 per cent overall. In the first and third clusters 75 per cent of the coffee
users used roast and ground type of coffee regularly. The reason behind using roast and
ground coffee might be by habit and taste they derive from it. In the second cluster, the
packaged coffee was used significantly by 10 per cent of the respondents within the cluster as
against one per cent in the third cluster.

5.1.5 Type of Coffee Used occasionally

The details on the type of coffee used occasionally are presented in the Table 5.1.5.

Table 5 Type of Coffee Used occasionally

Type of Coffee
used
Occasionally
R&G Coffee
Packaged Coffee
Instant Coffee
Total

1
N=18

Cluster No.
2
N=99

3
N=126

Total
N=243

2
6
3
13
(11)
(7)
(3)
(5)
0
1
0
2
(0)
(2)
(0)
(1)
0
6
0
7
(0)
(6)
(0)
(3)
2
13
3
18
(11)
(16)
(3)
(7)
(Figures in the parentheses indicate percentage to N in each column)

From the Table 5 it could be observed that in the second cluster 16 per cent of the
respondents used coffee brands occasionally and the roast and ground coffee was consumed
more (5 per cent) among the three categories in the occasionally coffee drinking households
followed by the instant coffee (3 per cent).

5.1.6 Regular and Occasional coffee types used simultaneously

The particulars on the types of regular and occasional coffee used
simultaneously are presented in the Table 6.
Table 6 Regular and Occasional coffee types used simultaneously
Type of Regular
and Occasionally
used Coffee
R & G and
Instant
Packaged and
Instant

1
N=19

0
(0)
0
(0)

Cluster
2
N=108
1
(0.5)
1
(0.5)

3
N=133

2
(1)
0
(0)

Overall
N=243
3
(0.1)
1
(0.5)

0
2
2
4
(0)
(1)
(1)
(1)
(Figures in the parentheses indicate percentage to N in each column)

Total

The sample households used the combination of roast and ground coffee used
regularly with instant coffee used occasionally commonly. But the number of households
using two types of coffee simultaneously was found to be negligibly low (one per cent of the
sample coffee drinking households).
5.1.7 Coffee Brand used regularly
The information on the brands used by the regularly coffee drinking households is
presented in Table 7.

Table 7 Coffee Brand used regularly

Coffee Brand
Used

Cluster No.
Overall
1

0
(0)

6
(7)

49
(40)

55
(25)

RG Narassus

3
(19)

26
(31)

19
(16)

48
(22)

RG Kannan
Jubilee

10
(63)

12
(14)

17
(14)

39
(18)

RG Parimala
Coffee

0
(0)

1
(1)

1
(1)

2
(1)

Other R&G

0
(0)

6
(7)

8
(7)

14
(6)

Pack Green
label

0
(0)

10
(12)

1
(1)

11
(5)

2
(13)

17
(20)

20
(17)

39
(18)

Ins Sunrise

1
(6)

6
(7)

6
(5)

13
(6)

Total

16

84

121

221

RG Coffee Day

Ins Bru

(Figures in parentheses indicate percentage to Total)

The Table 7 shows that the brand Coffee Day was used by around 25 per cent of the
respondents who consume coffee regularly followed by the brand Narassus (22 per cent) and
Kannan Jubilee in the roast and ground category. In the packaged coffee category, only
Brooke Bond Green Label was found used by around 5 per cent of the respondents. Instant
coffee category, Brooke Bond Bru was used by around 18 per cent and another popular brand
Nescafe Sunrise was used by 6 per cent of the respondents. Totally, roast and ground coffee
was the leading type of coffee consumed by 72 per cent of the respondents followed by the
instant coffee (24 per cent) by the regular users of coffee.

5.1.8 Clusterwise coffee Brands used Occasionally

The statistics on the coffee brands used by the occasionally coffee drinking sample
respondents are given in Table 8.
Table 8 Clusterwise coffee Brands used Occasionally
Brands used
Occasionally

Cluster No.
1

Overall

RG Coffee Day

0
(0)

0
(0)

1
(33)

1
(6)

RG Narassus

0
(0)

4
(31)

2
(67)

6
(33)

RG Kannan
Jubilee

1
(50)

0
(0)

0
(0)

1
(6)

RG Parimala
Coffee

1
(50)

0
(0)

0
(0)

1
(6)

Other R&G

0
(0)

2
(15)

0
(0)

2
(11)

Pack Udhayam

0
(0)

1
(8)

0
(0)

1
(6)

Ins Bru

0
(0)

1
(8)

0
(0)

1
(6)

Ins Sunrise

0
(0)

5
(38)

0
(0)

5
(28)

13

18

Total

(Figures in the parentheses indicate percentage to Total)

From the Table 8, it could be noted that Narassus was used by 33 per cent of
the occasionally coffee drinking households followed by the brand Nescafe Sunrise
(28 per cent) and other roast and ground coffee (11 per cent).

5.1.9 Regular and Occasional coffee brands used simultaneously

The details on the regular and occasional brands used simultaneously by the coffeedrinking households are presented in the Table 9.

Table 9 Regular and Occasional coffee brands used simultaneously

Brands Used
Bru & Narassus
Bru & Udhayam
Bru & Coffee Day
Sunrise & Coffee House
Total

Cluster
Overall
2
3
0
0
1
1
(0)
(0)
(100)
(25)
0
1
0
1
(0)
(100)
(0)
(25)
0
0
1
1
(0)
(0)
(100)
(25)
0
1
0
1
(0)
(100)
(0)
(25)
0
2
2
4
(Figures in the parentheses indicate percentage to Total)

As inferred from the Table 9, Instant coffee was found used with other types of coffee
simultaneously by 75 per cent of the total sample respondents who used two types of coffee.
5.1.10 No. of Adults and the Coffee drinking frequency (cups per day)
The coffee drinking frequency of the adults in the coffee drinking households are
presented in the Table 10
It could be observed from the Table 10 that majority (71 per cent) the coffee drinking
households have two adults followed by three (13 per cent). In the second cluster the
combination of two adults drinking two cups of coffee a day was found largely (72 per cent
of the respondents drinking two cups a day in the cluster) followed by two adults drinking
above two cups a day (74 per cent of the respondents drinking above three cups in the
cluster). Similarly in the third cluster the combination of two adults consuming two cups of
coffee a day was found to be maximum (80 per cent of the respondents drinking two cups a
day in the cluster). Hence, it could be concluded that the clusters two and three were found to
be heavy users in terms of volume consumed. Since, both the clusters were dominated by the
coffee drinkers drinking two or above two cups of coffee a day and in the majority of the
households, the number of adults in the family was found to be two and more.

Table 10 No. of Adults and the Coffee drinking frequency (cups per day)
Cluster No.

No.of
Adult in
the
Family

1
No.of Cups Per Day
1

Two

No.of Cups Per Day

Total
Above
Rare
2

2
(66)

12
(100)

2
100

0
(0)

0
(0)

17
(95)

13
(76)

31
(72)

1
(5)

4
(24)

1
(2)

Three

0
(0)

Four

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

Five

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

12

18

17

43

Total

1
(34)

11
(26)

No.of Cups Per Day

Above
Rare
2

Total

20
(74)

6
(50)

0
(0)

0
(0)

5
(19)

3
(25)

19
(19)

2
(7)

3
(25)

5
(6)

27

12

99

Above
Rare
2

70
(70)

10
(42)

53
(82)

21
(60)

5
(5)

14
(58)

5
(8)

6
(17)

7
(10)

4
(12)

0
(0)
0
(0)

0
(0)

24

65

0
(0)

NA Total

1
100

0
(0)

0
(0)

0
(0)

0
(0)

4
1
(11) (100)

35

Overall

0
(0)

85
(68)

172
(71)

25
(20)

31
(13)

11
(8)

30
(12)

5
(4)

10
(4)

126

243

(Figures in the parentheses indicate percentage to Total)

5.1.11 No. of Children and their Coffee Drinking Frequency

The coffee drinking frequency of the children in the sample households are presented
in the Table 11.
Table 11 No. of Children and their Coffee Drinking Frequency
Cluster No.
No.of
Cups

1
No.of Children
One

2
No.of Children

Two Total

3
No.of Children

One

Two

Total

One

Two

Overall

Three Total

3
(6)

3
(6)

6
(12)

8
(15)

15
(28)

23
(43)

15
(28)

7
(13)

2
(4)

24
(48)

53
(54)

0
(0)

0
(0)

0
(0)

4
(24)

1
(6)

5
(29)

4
(24)

8
(47)

0
(0)

12
(71)

17
(17)

(0)

2
(8)

2
(8)

6
(25)

4
(17)

10
(42)..

11
(46)

1
(4)

0
(0)

12
(50)

24
(24)

1
NA (25)

(0)

1
(25)

0
(0)

0
(0)

0
(0)

2
(50)

1
(25)

0
(0)

3
(75)

4
(4)

18

20

38

32

17

51

98

1
Cup

2
Cup

Rare

Total

(Figures in the parentheses indicate percentage to Total)

The results in Table 11 show that the households with single child were found
commonly. In 54 per cent of the total households children drink at least a cup of coffee a day
followed by the households where children rarely drink coffee (24 percent of the total
households with children.

5.1.12 Awareness levels of different Coffee Brands

The particulars on the Clusterwise and brand wise awareness of the brands are
presented in the Table 12.
From the results of the Table 12, the brands Narassus and Kannan Jubilee in the Roast
and Ground category, Brooke Bond Green Label in the packaged coffee category and Brooke
Bond Bru and Nescafe Sunrise in the instant coffee category were known to all of the
respondents. In all the three clusters they were commonly found unaidedly recalled.
Coffee Day was found to be known to 58 percent of the total coffee drinking
households. Out of the respondents aware of Coffee Day, the percentage of the aided recall
was found to be marginally higher than the unaided recall. For Coffee Day, the third cluster
had around 90 per cent of the total users of Coffee Day brand. Hence, the majority of the
respondents who recalled Coffee Day unaidedly were found to be the users of Coffee Day.
The brand Coorg has around 26 per cent of awareness among the respondents followed by
the local brands like raja, parimala and rama (20 per cent, 12 per cent and 8 per cent
respectively).

Table 12 Awareness levels of different Coffee Brands

Coffee
Brands
Coffee Day
Narassus
Kannan
Jubilee
Raja
Parimala
Rama
Udhayam
Green
label
Coorg
Bru
Sunrise

Cluster
2

1
UA
1
(1)
18
(7)
18
(7)
1
(2)
0
(0)
1
(5)
0
(0)
8
(3)
0
(0)
18
(7)
9
(4)

Total

UA

Total

10
(7)
0
(0)
0
(0)
8
(15)
4
(12)
2
(9)
10
(5)
10
(4)
-3
(-4)
0
(0)
9
(4)

11
(7)
18
(7)
18
(7)
9
(17)
4
(12)
3
(14)
10
(5)
18
(7)
0
(0)
18
(7)
18
(7)

16
(11)
99
(41)
59
(24)
4
(8)
4
(12)
1
(5)
15
(7)
57
(23)
0
(0)
80
(33)
59
(24)

32
(21)
0
(0)
40
(16)
16
(31)
-10
(-30)
12
(55)
73
(35)
42
(17)
35
(51)
19
(8)
40
(16)

48
(32)
99
(41)
99
(41)
20
(38)
14
(42)
13
(59)
88
(42)
99
(41)
64
(94)
99
(41)
99
(41)

UA

Overall
Total

UA

Total

58
35
93
75
77
152
(38)
(23)
(61)
(49)
(51)
124
2
126
238
5
243
(51)
(1)
(52)
(98)
(2)
109
17
126
186
57
243
(45)
(7)
(52)
(77)
(23)
3
20
23
8
44
52
(6)
(38)
(44)
(15)
(85)
1
14
15
5
28
33
(3)
(42)
(45)
(15)
(85)
0
6
6
2
20
22
(0)
(27)
(27)
(9)
(91)
35
78
113
50
159
209
(17)
(37)
(54)
(24)
(76)
84
42
126
149
94
243
(35)
(17)
(52)
(61)
(39)
0
30
30
0
68
68
(0)
(44)
(44)
(0) (100)
106
20
126
204
39
243
(44)
(8)
(52)
(84)
(16)
79
47
126
147
96
243
(33)
(19)
(52)
(60)
(40)
(Figures in the parentheses indicate percentage to Total)

5.1.13 Clusterwise Unawareness of the Brands

The clusterwise details on the unawareness of the brands are given in the Table 13.
Table 13 Clusterwise Unawareness of the Brands
Coffee
Brands

1
N=19

Coffee Day
Raja
Parimala
Rama
Udhayam
Coorg

2
N=108

Cluster

3
N=133

Total

7
51
33
91
(38)
(51)
(26)
(35)
9
79
103
191
(50)
(79)
(82)
(73)
14
85
111
210
(77)
(84)
(88)
(80)
15
86
120
221
(83)
(85)
(96)
(85)
8
11
13
32
(44)
(12)
(10)
(12)
15
64
96
175
(83)
(64)
(76)
(67)
(Figures in the parentheses indicate percentage to N in each column)

From the Table 13 it is clear that apart from the local brands, Coorg was the only
national brand that had high level of unawareness (67 per cent) among the sample
respondents while Coffee Day had an awareness percentage of around 65 per cent. The
second cluster had higher share of respondents unaware of Coffee Day since the users of the
brand was found to be high only in the third cluster.
5.1.14 Clusterwise Coffee:Chickory mix used by the sample households
The information on the mix (Coffee:Chickory) used by the sample households is
given in the Table 14.
From the Table 14, pure coffee was consumed by around 70 per cent of the sample
households without chicory. The next common blend of Coffee:Chickory used by the sample
households was 80:20 in the roast and ground coffee type. Brooke Bond Green Label which
has the Coffee:Chickory mix of 53-47 was used largely in the second cluster as the number
of packaged coffee users were high in the cluster compared with the other clusters.

Table 14 Clusterwise Coffee Type and Mix (Coffee:Chickory) used by the consumers

Type of
Coffee
Used

R&G
Coff(ee

Coffee:Chickory
Pure 80-20
7
6
(78) (100)

Cluster No.

Total

NA

Coffee:Chickory

Total

Pure 80-20 55-45 NA

0
(0)

13
(72)

46
(85)

4
(57)

10060-40
Pure 80-20 55-45
20

0
(0)

50
(50)

70
(95)

0
8
(0) (100)

2
(7)

10
(10)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

Instant
Coffee

0
(0)

0
(0)

3
(100)

3
(16)

0
(0)

2
(29)

0
(0)

23
(77)

25
(25)

Occasiona
2
lly used
(22)
type

0
(0)

0
(0)

2
(12)

8
(15)

1
(14)

0
(0)

5
(16)

18

54

30

Coffee:Chickory

0
(0)

Packaged
Coffee

Total

19
(95)

0
1
5
(0) (100) (100)

Total
NA
0
(0)

95
(75)

0
1
(0) (100)

0
(0)

0
(0)

0
(0)

1
(1)

2
(2.5)

0
(0)

0
(0)

0
(0)

0
(0)

25
(100)

27
(21)

14
(15)

2
(2.5)

1
(5)

0
(0)

0
(0)

0
(0)

0
(0)

3
(3)

99

74

20

25

126

(Figures in the parentheses indicate percentage to total in each Column)

5.1.15 Coffee Brands used and Years of Usage

The Clusterwise information on the brands and their years of usage by the sample
households were presented in the Table 15.
The Table 15 shows that the Coffee Day brand was used for around two years (60
percent) by the sample households. The remaining 40 percent of the Coffee Day users were
found to be using the brand for about two to five years. Majority of the users of Narassus,
Kannan Jubilee in the roast and ground category Brooke Bond Green label in the packaged
category and Brooke Bond Bru and Nescafe Sunrise were found to be using the brand for
five to ten years. In the second cluster the respondents using their favourite coffee brands for
five to ten years was found high (30 percent of the coffee drinking households). Except
Coffee Day, for all other brands, the sample households using them were found to be in the
category of consumers using their favourite brands for five to ten years.

Table 15 Coffee Brands used and Years of Usage

0
(0)

Total
0
0
(0)
(0)

3
(5)

Cluster No
2
2
3
4 Total 1
2
3
0
0
6 31 19
(5) (0) (0)
(11) (55) (34)

0
(0)

3
(6)

3
(6)

0
(0)

4
(8)

4 18
(8) (38)

26
(54)

0
(0)

4
5
10
(8) (10) (21)

19
(40)

0
8
(0) (17)

9 31
(19) (65)

39

1
5
4
(3) (13) (10)

10
(26)

0
(0)

0
(0)

2 10
(5) (26)

12
(31)

0
4
7
6
(0) (10) (18) (15)

17
(44)

0
5
(0) (13)

RG Parimala
Coffee

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
1
(0) (50)

1
(50)

0
(0)

0
(0)

0
1
(0) (50)

1
(50)

0
(0)

0
(0)

Other R&G

14

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

1
5
(7) (36)

6
(43)

0
(0)

0
2
6
(0) (14) (43)

8
(57)

0
(0)

0
(0)

14 20
(36) (51)
2
0
(100
(0)
)
3 11
(21) (79)

Pack Green
label

11

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

1
9
(9) (82)

10
(91)

0
(0)

0
(0)

0
(0)

1
(9)

1
(9)

0
(0)

0
(0)

1 10
(9) (91)

Ins Bru

41

0
(0)

0
(0)

2
(5)

2
(5)

0
(0)

0
(0)

2 16
(5) (39)

18
(44)

0
(0)

1
(2)

3
17
(7) (41)

21
(51)

0
(0)

1
(2)

5 35
(12) (85)

Ins Sunrise

14

0
(0)

0
(0)

1
(7)

1
2
(7) (14)

0
2
3
(0) (14) (21)

7
(50)

0
2
(0) (14)

0
4
(0) (29)

6
2
2
(43) (14) (14)

2
8
(14) (57)

Occasionally
used Brands

18

0
(0)

0
2
(0) (11)

1
(6)

0
(0)

3
(17)

Total

243

1
(0)

5
(2)

Coffee Brand
Used

RG
Coffee Day

1
2

56

0
(0)

RG Narassus

48

0
(0)

RG Kannan
Jubilee

12
(5)

2
(11)
18
(7)

0
2
(0) (11)

0 11
(0) (61)

13
(72)

5
(2)

12 73
(5) (30)

99 32 33
(41) (13) (14)

9
(4)

1
(6)

3
3
0
(0)

Overall
4

Total 1
2
0
50 34
22
(0) (89) (61) (39)

1
(6)

17
46
(7) (19)

0
(0)

0
(0)

1
3
(6) (17)

0 14
(0) (78)

126 37
41
(52) (15) (17)

34 131
(14) (54)

(Figures in the parentheses indicate percentage to N in each row)

5.1.16 Coffee Brands Used and their Purchase Frequency

The clusterwise information on the brands used and their purchase frequency is
presented in the Table 16.
From the Table 16, the Coffee Day brand was purchased thrice a month by 30 per
cent of the households followed by households purchasing once a month (29 per cent) and
households purchasing once a week (25 per cent). For the brand Narassus, the households
purchasing once a month was marginally high than those who purchase thrice a month (30
percent in the third cluster and 20 per cent in the second cluster). The packaged coffee brand
Green label was purchased commonly once a week by 65 per cent of the households. Among
the instant coffee users, the brand Bru and Sunrise were purchased commonly once a week
and once a month by around 30 per cent of the households in the second and third clusters.
Hence, it could be concluded that once a week and once a month purchase were found
common among the consumers.

Table 16 Coffee Brands Used and their Purchase Frequency

Coffee
Brands
Used
RG
Coffee
Day
RG
Narassus
RG
Kannan
Jubilee
RG
Parimala
Coffee
Other
R&G
Pack
Green
Label
Ins Bru

Occasionally
Cluster No.
1
2

On availability
Cluster No.
2
3

56

0
(0)

3
(5)

14
(25)

1
(2)

3
(5)

2
(4)

17
(30)

0
(0)

16
(29)

0
(0)

0
(0)

0
(0)

0
(0)

48

3
(6)

9
(19)

3
(6)

1
(2)

1
(2)

0
(0)

10
(21)

15
(31)

5
(10)

0
(0)

1
(2)

0
(0)

0
(0)

39

10
(26)

3
(8)

9
(23)

2
(5)

3
(8).

2
(5)

5
(13)

5
(13)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

1
(50)

0
(0)

0
(0)

1
(50)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

14

0
(0)

4
(29)

1
(7)

0
(0)

2
(14)

0
(0)

0
(0)

1
(7)

0
(0)

0
(0)

0
(0)

1
(7)

5
(36)

11

0
(0)

7
(64)

1
(9)

0
(0)

0
(0)

1
(9)

0
(0)

2
(18)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

2
(5)
1
(7)

9
(22)
4
(29)

5
(12)
1
(7)

0
(0)
0
(0)

0
(0)
0
(0)

3
(7)
2
(14)

4
(10)
1
(7)

6
(15)
1
(7)

12
(29)
4
(29)

0
(0)
0
(0)

0
(0)
0
(0)

0
(0)
0
(0)

0
(0)
0
(0)

0
(0)

1
(6)

0
(0)

0
(0)

0
(0)

0
(0)

1
(6)

2
(11)

2
(11)

2
(11)

8
(44)

2
(11)

0
(0)

16
(7)

40
(16)

34
(14)

5
(2)

9
(4)

10
39
32
39
2
9
3
(4)
(16)
(13)
(16)
(1)
(4)
(1)
(Figures in the parentheses indicate percentage to N in each row)

41

Ins
14
Sunrise
Occasion
ally used 18
brands
Total

Once a Week
Cluster No.
1
2
3

Purchase Frequency
Twice a Month Thrice a month
Once a month
Cluster No.
Cluster No.
Cluster No.
2
3
2
3
2
3

243

5
(2)

5.1.17 Clusterwise coffee brands used and their place of purchase

The Clusterwise details on the place of purchase of the different coffee brands are
given in the Table 17.
Table 51.17 Clusterwise coffee brands used and their place of purchase
Brand
Used

Place of Purchase
Excl. Company Outlets
Cluster
1
2
3
Total
0
6
49
55
(0) (11) (88)
(98)

Departmental Stores
On availability
Cluster
Cluster
1
2
3
Total 2
3
Total
0
0
1
1
0
0
0
(0)
(0)
(2)
(2) (0)
(0)
(0)

48

3
(6)

13
(27)

11
(23)

27
(56)

0
(0)

13
(27)

8
(17)

21
(44)

0
(0)

0
(0)

0
(0)

39

10
(26)

8
(21)

9
(23)

27
(69)

0
(0)

4
(10)

8
(21)

12
(31)

0
(0)

0
(0)

0
(0)

0
(0)

1
(50)

1
(50)

2
(100)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

14

0
(0)

2
(14)

1
(7)

3
(21)

0
(0)

3
(21)

2
(14)

5
(36)

1
(7)

5
(36)

6
(43)

11

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

10
(91)

1
11
(9) (100)

0
(0)

0
(0)

0
(0)

0
(0)
0
(0)

0
(0)
0
(0)

0
(0)
0
(0)

0
(0)
0
(0)

3
(5)
1
(7)

17
(41)
7
(50)

21
40
(51) (98)
6
14
(43) (100)

RG Coffee
56
Day
RG
Narassus
RG
Kannan
Jubilee
RG
Parimala
Coffee
Other
R&G
Pack
Green
label
Ins Bru

41

Ins
14
Sunrise
Occasiona
lly used
18
brands
Total

243

0
(0)
13
(5)

0
0
0
(0)
(0)
(0)
0
0
0
(0)
(0)
(0)
2
1
2
3
2
10
1
13
0
2
(11
(6) (11)
(17) (11) (56)
(6) (72)
(0) (11)
)
32
73
118
6
64
48
117
3
5
8
(13) (30)
(49) (2) (26) (20) (48) (1)
(2)
(3)
(Figures in the parentheses indicate percentage to N in each row)

From the Table 17, it is clear that, for the packaged and instant coffee brands the
departmental stores were found to be the only place of availability. For the brand Narassus,
the departmental stores were too found to be as effective in selling as the exclusive outlets
since, around 45 per cent of the households purchased the brand from the departmental stores
against the remaining 56 percent purchased it from the exclusive outlets. Similarly for the
brand Kannan Jubilee around thirty per cent of the users of the brand purchased it from the

departmental stores. For the brand Coffee Day, the only place of purchase was found to be its
exclusive stores, as it was not sold in the departmental stores. About 35 per cent of the
households in the third cluster purchased their favourite brands on availability and not in any
of the places said previously. The purchase was made in bulk and in large quantities from the
estates from places like Ooty. The consumers were purchasing the raw coffee beans and do
the rest of processing viz., roasting and grounding by themselves.
5.1.18 Clusterwise coffee Brand used and the Pack Size Purchased
The Clusterwise details on the pack sizes purchased by the consumers are presented
in the Table 18.
Table 18 Clusterwise Coffee Brand used and the Pack Size Purchased
Pack Size Purchased
50 gm
NA
100 gm
200
250 gm
500
N Cluster Cluster
Cluster
Cluster No.
Cluster No.
Cluster No.
No.
No.
No.
1
2
3
1
2
3
2
3
1
2
3
3
RG Coffee
0
0
0
0
0
4
0
0
0
6
30
16
56
Day
(0) (0) (0)
(0)
(0) (7) (0)
(0)
(0) (11) (54)
(29)
RG
0
0
0
0
3
7
0
0
3
23
11
1
48
(0) (0) (0)
(0)
(6) (15) (0)
(0)
(6) (48) (23)
(2)
Narassus
RG
0
0
0
0
0
5
0
0
10
12
12
0
Kannan
39
(0) (0) (0)
(0)
(0) (13) (0)
(0) (26) (31) (31)
(0)
Jubilee
RG
0
0
0
0
0
0
0
0
0
1
1
0
Parimala
2
(0) (0) (0)
(0)
(0) (0) (0)
(0)
(0) (50) (50)
(0)
Coffee
Other
0
1
5
0
2
1
0
0
0
3
2
0
14
R&G
(0) (7) (36)
(0) (14) (7) (0)
(0)
(0) (21) (14)
(0)
Pack
0
0
0
0
7
0
3
1
0
0
0
0
Green
11
(0) (0) (0)
(0) (64) (0) (27)
(9)
(0)
(0)
(0)
(0)
label
0
0
0
1
14
8
0
1
1
4
12
0
Ins Bru
41
(0) (0) (0)
(2) (34) (20) (0)
(2)
(2) (10) (29)
(0)
0
0
0
0
4
6
2
0
1
1
0
0
Ins Sunrise 14
(0) (0) (0)
(0) (29) (43) (14)
(0)
(7)
(7)
(0)
(0)
Occasional
2
2
0
0
10
1
0
0
0
1
1
1
ly used
18
(11) (11) (0)
(0) (56) (6) (0)
(0)
(0)
(6)
(6)
(6)
brands
2
3
5
1
40 32
5
2
15
51
69
18
Total
243
(1) (1) (2)
(0) (16) (13) (2)
(1)
(6) (21) (28)
(7)
(Figures in the parentheses indicate percentage to N in each row)
Brand
Used

The Table 18 says that for the roast and ground coffee category, the most purchased
pack size was 250 gram followed by the 100 gram pack. For the Coffee Day brand, the 500
gram pack size was also found to be used by 30 per cent of its consumers. For the packaged
and instant coffee brands, the most commonly purchased pack size was found to be 100
gram. In total, the 250 gram pack was used by around 28 per cent of the sample households
followed by the 100 gram pack. As the pack size was considered much convenient to store
and keep the freshness of the roast and ground coffee until the next purchase, it was preferred
most by the consumers.
5.1.19 Changed Brand in the past
The Clusterwise information on the brands changed by the consumers is presented in
the Table 19.
Table 19 Changed Brand in the past
Changed brand last year
Coffee Brand
used

0
(0)

No
Cluster No.
2
3
0
1
(0)
(2)

5
(10)

3
(6)

24
(50)

16
(33)

43
(90)

3
(8)

3
(8)

10
(26)

12
(31)

14
(36)

36
(92)

0
(0)

0
(0)

0
(0)

0
(0)

1
(50)

1
(50)

2
(100)

14

0
(0)

1
(7)

1
(7)

0
(0)

6
(43)

7
(50)

13
(93)

Pack Green label 11

0
(0)

0
(0)

0
(0)

0
(0)

10
(91)

1
(9)

11
(100)

Ins Bru

41

0
(0)

1
(2)

1
(2)

2
(5)

18
(44)

20
(49)

40
(98)

Ins Sunrise

14

2
(14)

0
(0)

2
(14)

1
(7)

5
(36)

6
(43)

12
(86)

Yes
Cluster No.
2
3
Total
6
49
55
(11)
(88)
(98)

RG Coffee Day

56

RG Narassus

48

2
(4)

3
(6)

RG Kannan
Jubilee

39

0
(0)

RG Parimala
Coffee

Other R&G

Total

243

Total
1
(2)

10
58
68
17
88
68
175
(4)
(24)
(28)
(7)
(36)
(29)
(72)
(Figures in the parentheses indicate percentage to N in each row)

From the Table 19, except Coffee Day, most of the consumers of all other brands did
not change their favourite brands in the past. About 98 per cent of the Coffee Day consumers
changed their favourite brand and purchased Coffee Day. Similarly, 14 per cent of the users
of Nescafe Sunrise changed their brands in the past and started using it.
5.1.20 Reasons for Change of Brands used previously
The Table 20 explains the reasons for changing the previously used brands by the
consumers.
From the Table 20, the major reasons for changing their favourite brands among the
present Coffee Day users was due to good taste of the brand (37 per cent) followed by the
offering of promotional programmes (25 per cent) and as trial (21 per cent). In the overall
picture, around 73 per cent of the sample households did not change their brands and 11 per
cent of the sample households were changed their previous brands due to the good taste of
the newly purchased brand.

Table 20 Reasons for Change of Brands used previously

Brands
Used
RG Coffee
Day
RG
Narassus
RG Kannan
Jubilee
RG
Parimala
Coffee

Cluster

Taste
Non
Needed
Non
Needed
No
&
No
No
Promo
Total
avail- Taste More Total
availTaste
Trial Less Total
Change
ConviChange
Change
-tions
quality
strength
ability
ability
nience
6
6
1
2
14
21
12
50
56
0
0
0
0
0
0
(11)
(11)
(2)
(4) (25) (37)
(21)
(89)

19

0
(0)

0
(0)

0
(0)

0
4
(0) (21)

0
4
(0) (21)

0
(0)

0
(0)

3
(16)

8
(42)

0
(0)

4
(21)

0
(0)

15
(79)

19

0
(0)

0
(0)

0
(0)

0
(0)

1
(5)

0
(0)

1
(5)

0
(0)

0
(0)

5
(26)

7
(37)

0
(0)

6
(32)

0
(0)

18
(95)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
2
(0) (100)

0
2
(0) (100)

0
(0)
0
(0)

0
(0)
0
(0)

0
2
(0) (13)
0
1
(0) (100)

1
(7)
0
(0)

0
3
(0) (20)
0
1
(0) (100)

0
(0)
0
(0)

6
(40)
0
(0)

3
(20)
0
(0)

1
(7)
0
(0)

1
(7)
0
(0)

1
(7)
0
(0)

0
(0)
0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

2
(67)

1
(33)

0
(0)

0
(0)

0
3
(0) (100)

12
(80)
0
(0)

Other R&G

15

Coffee
House

Pack Green
label

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

Ins Bru

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

1
1
(13) (13)

0
(0)

0
(0)

1
(13)

4
(50)

0
(0)

0
(0)

2
(25)

7
(88)

18
(10)

18
(10)

89
(51)

0
(0)

0
(0)

0
89
(0) (51)

69
(39)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

69
(39)

18
(7)

18
(7)

89
(37)

3
(1)

6
(2)

1
99
69
6
14
21
1
13
2
126
(1) (41)
(28)
(2)
(6)
(9)
(0)
(5)
(1) (52)
(Figures in the parentheses indicate percentage to N in each row)

Occasionall
y used
176
brands
Total

243

5.1.21 Mean Scores for the Attitudes towards the brands

The Table 21, presents the Clusterwise mean scores for the attitude of the
consumers towards their favourite brands.
Table 21 Mean Scores for the Attitudes towards the brands
S.No

Attitude

Cluster No.
1

Continue to use the brand

4.56

4.39

4.05

Recommend others the brand

3.17

3.62

3.6

Regard the brand Value for

Money

4.39

4.05

4.05

Do not switch brands in case of

non-availability of my favourite
brand.

4.56

3.12

2.86

Do not switch brand in the

absence of sales promotions in my
favourite brand

4.44

3.8

3.41

Do not switch brand even if the

price of my favourite brand is
increased.

1.83

2.92

2.37

Pay premium price for the brand

4.06

3.48

3.55

8.

Willingness to purchase Coffee

Day in Future

3.55

2.55

4.45

The mean scores for the attitudinal statements reveal that the clusters differ
significantly with each other in the characteristics of switching in non-availability and in the
absence of promotions in their favoutite brands. The first cluster is found to be highly loyal
to the brands they use as their response lies between strongly agree to agree for continuing

the same brands they use, not switching brands in non-availability and in the absence of
promotions, willing to pay premium price for their favourite brands and regarding their
favourite brand Value for Money. Hence, this category may well be regarded as the
Crme-de-la Crme of all the three clusters.
The third cluster was a typical segment where consumers were more cautious the
availability of their favourite brands and the sales promotions their favourite brands offer as
they almost agree to continue and recommend to others and regarding their favourite brands
as Value for Money. In the cluster the members were more cautious towards the availability
of their favourite brands and the sales promotions introduced by their favourite brands.
Hence, the cluster may well be named as the Availability and Promotion conscious one.
Interestingly, the members of the second cluster also responded strongly agree to
agree for the aspect of continuing the same brands they use and regarding that brands Value
for Money. But the cluster differs significantly from the first one in other characteristics like
sticking to the same brand in the case of non-availability, in the absence of sales promotions
from their favourite brands, and paying premium price for the brands they use. The responses
for the said factors were around the neutral to agreement. Being intermediate in the responses
in their attitude, this cluster may well be named The Midway cluster.
The members of all the clusters were uniformly responded to the price factor as their
response lied between strongly disagree to disagree meaning that they would switch brands
in the case of a price hike in their favourite brands. The first cluster was more wary towards
the increase in the price of their favourit brands.
Among the three, the members in the third cluster who did not used Coffee Day
previously were positively responded towards purchasing Coffee Day in future followed by
the members of the first cluster whereas the non users of Coffee Day in the second cluster
were not sure of trying it in future.
5.1.22 Clusterwise Mean ranking scores for importance of the brand attributes
The information on the mean scores ranking of attributes of the brands used by the
consumers based on their relative importance is presented in the Table 22.

Table 22 Clusterwise Mean ranking scores for the importance of the brand attributes
S.No

Attributes

Cluster No.
1

1.

Aroma

3.00

3.00

2.94

2.

Taste

3.00

3.00

3.00

3.

Strength

2.44

2.78

2.57

4.

Popularity

1.72

1.83

1.80

5.

Price

2.66

2.71

2.92

6.

Availability

2.27

2.86

2.83

7.

Promotions

1.00

1.12

1.53

8.

Store look, Ambience

2.11

1.71

2.07

9.

Service

2.50

2.10

2.11

10.

Display

1.94

1.75

1.81

From the mean scores, the attributes like aroma, taste, strength and more importantly
availability and price were regarded very important in all the three clusters. Attributes like
store look, service were regarded important next to the above attributes in all the clusters.
The attributes like brand popularity, promotions and product display in the stores were
regarded nearly important in all the three clusters. In the third cluster, the mean importance
ranking score for sales promotions was comparatively high among all the clusters. Hence, the
members of the third cluster considered sales promotions as a significant factor while
purchasing a brand and might be responsive to the sales promotions offered by their brands.
In contrast, the members of the first cluster least considered the promotions available in their
favourite brands.

5.1.23 Clusterwise Mean scores for the rating of the brands used by the
consumers
The Table 23 gives the information on the importance ratings for the following brand
attributes.

Table 23 Clusterwise Mean scores for the rating of the brands used by the
consumers
S.No

Attributes

Cluster No.
1

1.

Aroma

4.11

4.33

4.19

2.

Taste

4.33

4.47

4.23

3.

Strength

4.00

4.14

4.16

4.

Popularity

3.66

4.04

3.44

5.

Price

3.50

4.19

3.69

6.

Availability

3.72

4.09

3.88

7.

Promotions

3.00

3.06

3.39

8.

Store look / Ambience

4.05

3.47

3.61

9.

Service

3.33

3.56

3.74

10.

Display

3.88

4.45

3.82

From the Table 23, it could be inferred that for the attributes viz., taste, aroma and
strength all the brands were perceived excellent as the mean scores lied between excellent
and good. The response for the attributes like popularity, service, and store look was between
neutral to good. For the attributes like price, sales promotions and availability the response of
all the three clusters was between neutral to satisfactory. Among the clusters, the members of
the third cluster were found to be conscious on the aspects of availability and sales
promotions of their favourite brands in consonance with their attitude towards their brands on
the same aspects.

5.1.24 Mean Scores of Attitude towards sales promotions

The Table 24 presents the clusterwise details on the responses of the consumers for
the promotional activities of their favourite brands.
Table 24 Mean Scores of Attitude towards sales promotions
S.No

Clusters

Particulars
1

The ads / Promotions are attractive, likeable and easy

to remember

3.05

3.10

4.3

The messages shown in the ad / Promotions are

believable

3.00

3.12

4.29

I purchased the brand after seeing the ad / Promotion

2.22

2.29

3.88

I do not actively participate in the Sales Promotions.

2.5

4.44

3.06

Sales Promotions are not necessary

4.61

4.58

2.78

Promotions do not enhance the Brand Image

4.55

4.08

2.90

From the Table 24, it could be inferred that the third cluster was more responsive
towards the promotional programmes offered by their favourite brands. The mean scores
reveal that the promotions were attractive, believable, influencing the purchase decision as
the responses were nearing agreement towards the statements unlike the other two clusters. In
contrast with the other clusters, the members of the third clusters responded neutrally to the
statements like the sales promotions were necessary and they would enhance the image of the
brands as they were not sure of their stance the sales promotions. Also, the members of the
third cluster were not sure of actively participating in the sales promotions while the
members of the second cluster responded positively towards actively participating in the
sales promotions and the members of the first cluster responded negatively. The second and
first cluster shared similarities by responding negatively towards the statements viz., sales
promotions are necessary and they enhance the brand image.

5.1.25 Clusterwise Media Ownership (TV, Radio etc,)

The table 25 presents the Clusterwise details on the media ownership of the sample
households. This information will be useful in formulating the media strategy to reach the
specified target group.
Table 25 Clusterwise Media Ownership
Cluster

1
2
3
Overall

Media Possession
TV and Radio
TV alone
19
0
19
(100)
(0)
108
0
108
(100)
(0)
118
15
133
(88)
(12)
245
15
260
(94)
(6)
(Figures in the parentheses indicate percentage to N in each row)

From the Table 25, it is inferred that 94 per cent of the sample households possessed
both Television and radio while in the third cluster 12 per cent of the sample respondents
possessed only television in their homes.

5.1.26 Clusterwise Radio Listening hours per day

The Clusterwise information on the radio listening behaviour of the sample
households is presented in the Table 26.

Table 26 Clusterwise Radio Listening hours per day

Cluster

19

108

133

Overall

260

Radio Listening hours per day

About 1 hour
2 + hours
Occasional
Never
5
13
1
0
(11)
(7)
(5)
(0)
20
78
10
0
(18)
(72)
(10)
(0)
21
88
11
13
(16)
(66)
(8)
(10)
46
179
22
13
(18)
(68)
(9)
(5)
(Figures in the parentheses indicate percentage to N in each row)

The table 26 describes that 68 per cent of the sample households were listening to the
radio (AM / FM) programmes for more than 2 hours a day followed by those who listen for

an hour a day (18 per cent). Including the occasional listeners, totally 95 per cent of the
sample respondents listen to the radio programmes in their homes.
5.1.27 Clusterwise Vehicle Possession
The information on the vehicle possession by the sample households in their homes is
given in the Table 27.
Table 27 Clusterwise Vehicle Possession
Cluster No. N
1

19

108

133

Overall

260

Vehicle Possession
Two-Wheeler Four Wheeler Not Disclosed No Vehicle
13
6
0
0
(69)
(31)
(0)
(0)
67
37
3
1
(62)
(34)
(3)
(1)
111
16
2
4
(83)
(14)
(1)
(2)
191
59
5
5
(74)
(22)
(2)
(2)
(Figures in the parentheses indicate percentage to N in each row)

From the Table 27 it is worth to note that 74 per cent of the total sample households
possessed a two-wheeler in their homes and 22 per cent of the total respondents possessed a
four-wheeler in their homes. In the second cluster the proportion (34 per cent within the
cluster) of the households possessing four-wheeler was found comparatively high among the
other two clusters.
5.1.28 Clusterwise Newspapers reading in home
The Clusterwise details on the newspaper reading habits of the sample households are
presented in the Table 28.
Table 28 Clusterwise Newspapers reading in home
S.No
1.
2.
3.

Cluster
Overall
2
3
N=260
N=108
N=133
2
18
50
70
No Newspapers
(11)
(17)
(38)
(27)
9
71
60
140
One
(47)
(66)
(45)
(54)
8
19
23
50
Two
(42)
(17)
(17)
(19)
(Figures in the parentheses indicate percentage to N in each column)
Number of
Newspapers

1
N=19

From the Table 28 it could be inferred that 27 per cent of the sample households did
not purchased newspapers in their homes. About 54 per cent of the households subscribed
one newspaper in their home and 19 per cent of the households bought two newspapers in
their homes. The proportion (83 per cent within the cluster) of the households subscribing to
at least one newspaper in their home was found high in the second cluster followed by 62 per
cent in the third cluster.
5.1.29 Clusterwise Newspapers reading by the consumers
The Table 29 presents the details on the newspapers read by the sample households,
Table 29 Clusterwise Newspapers reading by the consumers
Cluster
Overall
S.No
Newspapers
1
2
3
N=260
N=19
N=108
N=133
9
50
51
110
1.
The Hindu
(47)
(46)
(38)
(42)
The Indian
6
21
16
43
2.
Express
(32)
(19)
(12)
(16)
2
15
13
30
3.
Dinamalar
(11)
(14)
(10)
(11)
6
10
20
36
4.
Dinamani
(32)
(9)
(15)
(13)
1
12
4
17
5.
Dinatanthi
(5)
(11)
(3)
(7)
The Economic
1
3
2
6
6.
Times
(5)
(3)
(2)
(2)
(Figures in the parentheses indicate percentage to N in each column)
From the Table 29, it is clear that The Hindu was read by almost 42 per cent of the
respondents followed by the Indian Express (16 per cent), and tamil dailies like Dinamani
(13 per cent), Dinamalar (11 per cent) and Dinathanthi (7 per cent). In total, the English
dailies were reaching 60 per cent of the sample households while Dinamani topped the list of
most read tamil daily in the sample households marginally overtaking Dinamalar.
5.1.30 Clusterwise magazine reading habits of the respondents
The Table 30 presents the Clusterwise information on the magazine reading habits of
the sample households.

Table 30 Clusterwise magazine reading habits of the respondents

Cluster
Number of
Overall
S.No
1
2
3
Magazines
N=260
N=19
N=108
N=133
6
19
20
45
1.
No Magazines
(32)
(17)
(15)
(17)
89
41
57
106
2.
One
(42)
(38)
(43)
(41)
5
46
50
101
3.
Two
(26)
(43)
(38)
(39)
0
2
6
8
4.
Three
(0)
(2)
(4)
(3)
(Figures in the parentheses indicate percentage to N in each column)
It is inferred from the Table 30 that 41 per cent of the households were found reading
one magazine which was marginally higher than the households reading two magazines in
their homes (39 per cent). About 17 per cent of the sample households were found not
reading at least one magazine in their homes.
5.1.31 Clusterwise Magazines Read by the consumers
The Clusterwise information on the magazines read by the sample households is
presented in the Table 31.
Table 31 Clusterwise Magazines Read by the consumers
Cluster
Overall
S.No
Magazines
(N=260)
1 (N=19)
2 (N=108)
3 (N=133)
6
48
63
117
1.
Ananda Vikatan
(32)
(44)
(47)
(45)
1
13
32
46
2.
Aval Vikatan
(5)
(12)
(24)
(18)
4
22
14
40
3.
Kumudam
(21)
(20)
(11)
(15)
2
29
20
51
4.
Mangayar Malar
(11)
(27)
(15)
(15)
1
7
7
15
5.
Junior Vikatan
(5)
(6)
(5)
(6)
3
10
19
32
6.
Kalki
(16)
(9)
(14)
(12)
1
8
12
21
7.
The Week
(5)
(7)
(9)
(8)
0
2
6
8
8.
India Today
(0)
(2)
(5)
(3)
0
0
2
2
9.
Business Today
(0)
(0)
(2)
(1)
(Figures in the parentheses indicate percentage to N in each column)

From the results of the Table 31, it could be noted that 45 per cent of the sample
respondents read Ananda Vikatan, a popular tamil weekly followed by Aval Vikatan (18 per
cent), a magazine for the women and Kumudam and Mangayar Malar (15 per cent each). The
reach of English magazines was found to be 12 per cent of the total sample households. The
magazines for women were reached 33 per cent of the sample households in total.
5.1.32 Cluser wise Household Income of the Sample households
The details on the income wise categorization of the three clusters are presented in the
Table 32.
Table 32 Cluser wise Household Income of the Sample households
S.No

Income Category

1.

I
(Upto Rs.7000 p..m)

2.

II
(Rs.7001-Rs10000 p.m)

3.
4.
5.
6.

1
N=19
1
(5)

Cluster
2
N=108
12
(11)

3
N=133
6
(4)

3
(16)

22
(20)

43
(32)

Overall
N=260
19
(7)
68
(26)

III
(Rs10001 Rs.15000 p.m)
IV
(Rs.15001-Rs20000 p.m)
V
(Above Rs.20000)
Not Disclosed

0
13
24
37
(0)
(12)
(18)
(14)
0
10
14
24
(0)
(9)
(11)
(10)
0
5
1
6
(0)
(5)
(1)
(2)
15
46
45
106
(79)
(43)
(34)
(41)
(Figures in the parentheses indicate percentage to N in each column)

From the results of the Table 32, it is noteworthy that 26 per cent of the total
respondents were in the category having average monthly household income between
Rs.7000 and Rs.10000 while the third category (having monthly household income between
Rs.10000 and Rs.15000) was found to be consisting 14 per cent of the total respondents.
About 41 per cent of the respondents did not reveal their household income.

Section II Estimation of Brand Equity of Coffee Day

In this section, the customer based brand equity for the brand Coffee Day is estimated
and the results are discussed as follows.

5.2.1 Brand wise mean scores for the attitudes of the consumers
The Table 33 presents the details on the brand wise mean scores for the attitudes of
the consumers towards their favourite brands.

Table 33 Brand wise mean scores for the attitudes of the consumers
Attitudes towards the brand
Regard
Do not
Do not
Coffee
Do not
Willing Do Not
as
switch
switch
Brand
To
To
switch in
to pay Try
in the
if the
used Continue Recommend Value
non
Premium New
for
absence of Price is
availability
Price Brands
Money
Promotions Increased
Coffee
Day

4.14

4.05

4.26

2.39

3.37

2.08

3.55

3.01

Narassus

4.12

3.77

3.95

3.39

3.68

2.58

3.37

3.70

Kannan
Jubilee

4.23

3.64

4.15

3.43

3.89

2.25

4.07

3.97

Parimala
coffee

5.00

4.50

4.50

2.50

4.50

3.50

3.50

4.00

4.21

3.57

3.92

3.07

3.64

2.71

3.50

3.85

4.36

3.54

3.90

2.45

3.63

3.27

3.90

3.18

Bru

4.24

3.12

3.97

3.41

3.80

2.85

3.24

4.09

Sunrise

4.71

2.71

4.14

3.78

3.50

3.57

3.78

4.28

Other
R&G
Green
Label

From the Table 33, the users of all the brands were found willing to continue its usage
and almost agree to regard their favourite brands as a value-for money one. With regard to
the statements like switching in the case of non-availability of their favourite brands and in
the case of an increase of the price, the consumers of Coffee Day were found to be nearly

disagreeing. This implies that the Coffee Day consumers considered the price, availability
and the sales promotions important in the given order.
5.2.2 Brand wise Mean scores for the quality attributes
The brand wise ratings of the consumers towards the quality attributes are described
in the Table 34.
Table 34 Brand wise Mean scores for the quality attributes
Attributes
Aroma
Taste

Coffee Brand used

RG
RG
RG
Pack
Other
RG
Coffee
Kannan Parimala
Green
R&G
Narassus
label
Day
Jubilee Coffee
4.44
4.22
4.23
5.00
4.14
4.09
4.26
4.35
4.30
4.50
4.21
4.09

Ins Bru

Ins
Sunrise

4.07
4.48

4.28
4.85

Strength

4.21

4.00

4.10

4.50

4.14

4.27

4.07

4.57

Popularity

3.07

3.72

3.64

3.50

3.85

4.09

4.09

4.28

Price

3.80

4.06

3.92

4.00

4.00

4.00

3.73

3.71

Availability

3.60

3.77

3.84

4.00

3.92

3.90

4.53

4.78

Promotions

3.53

3.16

2.94

2.50

3.21

2.81

3.29

3.50

Store look /
Ambience

3.48

3.79

3.66

3.50

3.71

3.09

3.41

3.71

Service

3.92

4.08

3.30

3.50

4.00

3.27

3.21

3.14

Display

4.03

3.81

8.56

3.00

3.85

3.90

3.31

3.21

From the results of the Table 34, it is inferred that Coffee Day consumers were rating
the brand as nearly excellent with regard to the quality attributes like aroma, taste and
strength. All the brands were rated by their respective consumers near excellent, as their
scores for the above attributes remained between good and excellent. For the attributes like
popularity, store look, service in the outlets and product display, Coffee Day was hailed
nearly good by its consumers. For the factors viz., price, availability and sales promotions,
the Coffee Day customers were seemed nearly satisfied.

5.2.3 Calculation of Brand Equity of Coffee Day

The epitome for calculating the brand equity for Coffee Day is presented in the
table35.
Table 35 Calculation of Brand Equity of Coffee Day

I. Awareness Index
Unaided
Aided
Total
Awareness Index [(152/260)*100]

II. Loyalty Index

Attitude towards the brand

Coffee Day
To Continue
To Recommend
Regard Value for money
Do not switch if
Not available
No promotion
Price increased

Average
Score
4.14
4.05
4.27

Strongly
Agree
17.00
16.00
15.00

2.39

Willing to Pay premium price

75
77
152
58

Agree

Total

Percentage

30.00
27.00
41.00

47.00
43.00
56.00

84
77
100

0.00

7.00

7.00

13

3.38
2.09

5.00
0.00

24.00
5.00

29.00
5.00

52
9

3.55

4.00

30.00

34.00

61

Total
Loyalty Index [(395/7)*100]

III. Quality Index

Quality Attributes

Average
Score

Aroma
Taste
Strength
Popularity
Price
Availability
Promotions
Store look
Service
Display

4.45
4.27
4.21
3.07
3.80
3.61
3.54
3.48
3.93
4.04

Highly
Satisfied /
Excellant
25
15
12
4
5
6
1
8
3
2

Satisfied /
Total
Good

56
56
56
17
40
35
32
30
49
56
Total
Quality Index [(763/12)*100]

Brand Equity Index

31
41
44
13
35
29
31
22
46
54

(58+56+76)

395
56

Percentage
100
100
100
30
71
63
57
54
88
100
763
76
190
(Out of 300)

The table 35 describes the various components of the customer based brand equity of
Coffee Day and their contribution to its aggregate brand equity. The awareness, loyalty and
the quality components were found contributing 30 per cent, 29 per cent and 41 per cent
respectively to the aggregate brand equity of Coffee Day. This implies that still there was a
immediate need to improve the percentage contribution of each component to the aggregate
brand equity. The awareness component contributes about 30 per cent to the brand equity and
it implies the fact that there was still 70 per cent of the potential consumer base was left out
being unaware of the brand. The contribution of the loyalty index (29 per cent) to the
aggregate brand equity necessitated the need for special loyalty programmes to increase its
share of contribution to the aggregate brand equity. Similarly, the contribution of the quality
index could well be increased to its fullest extent by way of improving the quality of the
brand which makes its customers satisfied or highly satisfied with certain quality parameters
and hail the brand excellent or good with regard to other quality parameters.

Section III Effectiveness of the Promotional Programmes of Coffee Day

In this section, the effectiveness of the promotional programmes introduced by the
brands were analysed based on the clusterwise and brand wise recall of the advertisements or
promotions.

5.3.1 Clusterwise Brands recalled

The Table 36 presents the information on the clusterwise recall of the brands and their
advertisements or promotions.

Table 36 Clusterwise Brands recalled

Brand
Bru
Green Label
Narassus
Narassus Udhayam
Sunrise
Coffee Day
Kannan Jubilee
No recall

1 (N=18)

3
(17)
0
(0)
3
(17)
0
(0)
0
(0)
0
(0)
11
(61)
1
(5)

Cluster No.
2 (N=99)
14
(13)
23
(23)
17
(18)
3
(3)
14
(15)
6
(6)
3
(3)
19
(19)

3 (N=126)
7
(6)
19
(15)
3
(2)
0
(0)
1
(1)
58
(46)
2
(2)
35
(28)

Total
(N=243)

24
(9)
42
(17)
23
(10)
3
(2)
15
(6)
64
(26)
16
(7)
55
(23)

(Figures in the parentheses indicate percentage to N in each column)

From the clusterwise results of the recall of the brands, it is clear that in the third
cluster the percentage of those consumers who could not recall any brands (28 per cent) was
marginally higher than the second cluster (19 per cent). In the third cluster, 46 per cent of the
cluster members recalled the brand Coffee Day and a slightly higher percentage of members
of the second cluster recalled all the other brands than those in the third cluster.

5.2.4 Brand wise recall of advertisements or promotions by the respondents

The brand wise recall of the advertisements or promotions is given in the Table 37.

Table 37 Brand wise recall of advertisements or promotions by the respondents

Brands
Recalled

Coffee Brand used

Total
RG
RG
RG
Pack
RG
Other
Ins
Kannan Parimala
Coffee
Green Ins Bru
R&G
Narassus
Sunrise
Jubilee Coffee
Day
label

Bru

0
(0)

3
(6)

0
(0)

0
(0)

1
(7)

1
(9)

17
(42)

1
(7)

24
(10)

Green Label

0
(0)

9
(19)

1
(3)

1
(50)

5
(36)

8
(73)

13
(31)

0
(0)

42
(17)

Narassus

0
(0)

19
(40)

2
(5)

0
(0)

0
(0)

0
(0)

2
(5)

0
(0)

25
(11)

Narassus
Udhayam

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

2
(5)

0
(0)

2
(1)

Sunrise

0
(0)

2
(4)

2
(5)

0
(0)

1
(7)

0
(0)

0
(0)

6
(43)

15
(6)

55
(98)

3
(6)

3
(8)

0
(0)

0
(0)

0
(0)

1
(2)

1
(7)

64
(26)

Kannan
Jubilee

0
(0)

0
(0)

14
(36)

0
(0)

0
(0)

0
(0)

0
(0)

0
(0)

16
(7)

No recall

1
(2)

12
(25)

17
(43)

1
(50)

7
(50)

2
(18)

6
(15)

6
(43)

55
(22)

Total

56

48

39

14

11

41

14

243

Coffee Day

(Figures in the parentheses indicate percentage to N in each column)

The results of the table 37 show that 98 per cent of the Coffee Day users, 73 per cent
of the users of Green Label, 43 per cent of the users of Nescafe Sunrise, 42 per cent of the
customers of Brooke Bond Bru and 36 per cent of the users of Kannan Jubilee were able to
recall the advertisements or promotions of their corresponding brands. About 22 per cent of
the consumers were unable to recall any kind of advertisements or promotions. Brooke Bond
Green label was the only brand that was recalled by 31 per cent of the users of Brooke Bond
Bru and 19 per cent of the users of Narassus coffee and an overall recall of 17 per cent of the
sample respondents. It was the only brand, among all the other brands, to achieve such a
distinction of being recalled by a significant mass of the non-users.

5.3.3 Clusterwise Recall of Promotions of Coffee Day

The effectiveness of the promotional programmes introduced in the brand Coffee Day
was analyzed for their recall and the results are shown in Table 38. The results assume
importance in offering the best possible combination of sales promotions to the consumers.
Table 38 Clusterwise Recall of Promotions of Coffee Day
Cluster No.

Promotions

2 (N=6)

Membership, Coupons
Membership, Sugar
Membership, Sugar and
Pet Jars
Memberships, Sugar,
Gold Bonanza
Sugar
Sugar, Pet
No recall

3 (N=50)

Total
N=56

0
(0)
2
(33)
0
(0)

1
(2)
7
(14)
4
(8)

1
(2)
9
(17)
4
(8)

0
(0)

3
(6)

3
(6)

1
(17)
3
(50)

14
(28)
20
(40)

15
(25)
23
(40)

0
(0)

1
(2)

1
(2)

(Figures in the parentheses indicate percentage to N in each column)

From the table 38, the best recalled combination was found to be the Sugar Free Offer
and the Pet Jar Free Offer having recalled by 40 per cent of the Coffee Day users. About 25
per cent of the Coffee Day users recalled only the Sugar Free Offer followed by the
combination of 10 % Membership Reduction Offer and the Sugar Free Offer. As the
number of Coffee Day users was found high in the third cluster, it assumes importance in
designing promotional programmes for its customers.
5.3.4 Clusterwise and Mediumwise recall of Promotions of Coffee Day
The details on the various combination of the media through which the promotional
programmes of Coffee Day reached its customers are presented in Table 39.

Table 39 Clusterwise and Medium wise recall of Promotions of Coffee Day

Media
Campaign, POP
Campaign, POP,
newspaper
Leaflet, POP

Cluster No.
2
(N=6)

0
(0)
1
(17)
0
(0)

3
(N=50)

Total
(N=56)
11
(22)
0
(0)
2
(4)

11
(20)
1
(2)
2
(3)

Leaflet, POP,
newspaper

0
(0)

2
(4)

2
(3)

Leaflets, POP

0
(0)

4
(8)

4
(6)

0
(0)
5
(83)

5
(10)
24
(48)

5
(8)
29
(51)

POP, local TV

0
(0)

1
(2)

1
(2)

POP, newspapers

0
(0)

1
(2)

1
(2)

Local TV,
newspaper
POP

No Recall

0
2
2
(0)
(4)
(3)
(Figures in the parentheses indicate percentage to N in each column)

The results of the table 39 reveal that 51 per cent of the Coffee Day customers were
able to recall its promotional programmes through the Point of Purchase materials and the
next best possible media combination were found to be Campaigns with POP materials and
Local TV with newspapers (20 per cent and 8 per cent of the customers recalled the
promotional programmes respectively from both the means of communication).

Section IV Purchase behavior of the Business markets

The awareness, purchase decisions and the satisfaction levels of the business markets
like bakeries, hotels and restaurants are discussed in this section.

5.4.1 Type of Business of the sample business respondents

The details of the number of the bakeries and hotels among the total business market
respondents are presented in table 40.
Table 40 Type of Business of the business respondents
S.No
1.
2.

Number
respondents

Type

of

23
(58)
17
Hotels
(42)
Total
40
(Figures in parentheses indicate percentage to Total)
Bakeries

It is inferred from the Table 40 that 58 per cent of the sample respondents of the
business market were found to be in the bakery business and the remaining 42 per cent of the
respondents were belonged to the hotels category.
5.4.2 Experience in the Business
The information on the experience of the business markets in the business is given in
the Table 41.
Table 41 Experience in the Business
S.No

Category

1 to 5 years

5 to 10 years

10 to 15 years

More than 15 years

Total

Type of Business
Bakeries

7
(30)
13
(57)
1
(4)
2
(9)
23

Hotels

Total
3
(18)
9
(53)
3
(18)
2
(11)

10
(25)
22
(55)
4
(10)
4
(10)

17

40

(Figures in parentheses indicate percentage to Total)

From the Table 41, the majority of the players in the business market were found
running their business for 5 to 10 years followed by those who were in the business for an
year to five years (25 per cent). About 10 per cent each of the respondents were belonged to
the third and fourth category running their business for 10 to 15 years and above 15 years
respectively.
5.4.3 Type of Coffee Used by the sample business respondents
The details on the type of coffee used in the shops of the respondents are presented in
the Table 42.
Table 42 Type of Coffee Used by the sample business respondents
S.No

Type of Coffee used

Type of Business
Bakeries

1.

R&G Coffee

2.

Instant Coffee

3.

Instant + Packaged

Total

Hotels
0
(0)
22
(96)
1
(4)

17
(100)
0
(0)
0
(0)

17
(43)
22
(55)
1
(2)

23

17

40

Total

(Figures in parentheses indicate percentage to Total)

The table 42 tells that the Roast and Ground coffee was used only by the hotels and
the bakeries were found to be using instant coffee either pure or mixed with the roast and
ground coffee (96 per cent and 4 per cent respectively)
5.4.4 Coffee Brand used by the sample business respondents
The details on the coffee brands used by the respondents are presented in Table 43.

Table 43 Coffee Brand used by the sample business respondents

Brands Used
RG Coffee Day
RG Narassus
RG Leo Coffee
RG Raja Coffee
RG Parimala Coffee
Own R&G
Ramakrishna coffee
Ins Bru
Ins Sunrise
Bru + Green Label
Total

Type of Business
Bakeries
Hotels
0
1
(0)
(6)
0
3
(0)
(18)
0
1
(0)
(6)
0
1
(0)
(6)
0
1
(0)
(6)
0
8
(0)
(47)
0
2
(0)
(12)
15
0
(65)
(0)
6
0
(26)
(0)
2
0
(9)
(0)
23

17

Total
1
(2.5)
3
(7)
1
(2.5)
1
(2.5)
1
(2.5)
8
(20)
2
(5.0)
15
(38)
6
(15)
2
(5)
40

(Figures in parentheses indicate percentage to Total)

About 65 per cent of the bakeries were using Brooke Bond Bru followed by 26 per
cent using Nescafe Sunrise and 9 per cent using Bru with Green Label. In the hotels category,
47 per cent of the hotels were using their own coffee powders sourced, ground and mixed
with chickory by themselves. About 18 per cent of them used Narassus.

5.4.5 Purchase Frequency of the Business Markets

The information on the frequency of purchase by the sample business respondents is
presented in table 44.

Table 44 Purchase Frequency of the Business Markets

S.no

Purchase
Frequency

1.

Alternate Days

2.

Once a Week

3.

Twice a Month

Type of Business
Bakeries

Total

Total

Hotels
0
(0)

2
(12)

2
(5)

19
(83)
4
(17)

9
(53)
6
(35)

28
(70)
10
(25)

23

17

40

(Figures in parentheses indicate percentage to Total)

From the table 44, it is clear that majority of the purchases were made once a week by
70 per cent of the sample business respondents and a quarter of the total respondents were
found purchasing twice a month.

5.4.6 Place of Purchase of the Coffee Powder

The particulars on the place of purchase of coffee are furnished in Table 45.
Table 45 Place of Purchase of Coffee Powder
Type of Business
S.No

Place of Purchase

Total
Bakeries

Hotels

1
(4)

5
(29)

6
(15)

22
(96)

0
(0)

22
(55)

Excl. Company outlets

0
(0)

4
(24)

4
(10)

Own Sourcing

0
(0)

8
(47)

8
(20)

23

17

40

1.

Direct from Company

2.

Distributor

3.
4.

Total

(Figures in parentheses indicate percentage to Total)

Between the two categories, there observed a significant difference in the place of
purchase as inferred from the Table 45. Majority (96 per cent) of the bakeries purchased their
favourite brands from the distributor who delivers the product directly to the shops. In
contrast, among the hotels, 47 per cent of them sourced their favourite brand by themselves
from their own source and 30 per cent purchased directly from the companies. The reason
behind the own sourcing was that it had several advantages like reduced price, customized
mixing to get unique taste etc.
5.4.7 Mixture (Coffee:Chicory) used by the hotels
The information on the mix used by the hotels is given in the Table 46.
Table 46 Mixture (Coffee:Chicory) used by the hotels
S.No

Mix (Coffee:Chickory)

Number of Hotels
5

1.

100-10

2.

Trupti

3.

60-40

4.

50-50

5.

Not Disclosed

(29)
1
(6)
6
(35)
1
(6)
4
(24)

Total

17
(Figures in parentheses indicate percentage to Total)

The commonly used mixture was found to be the 60:40 (Coffee:Chickory) followed
by the 100:10 mixture (used by 29 per cent of the hotels).

5.4.8 Daily Consumption of Coffee Powder by the Business Markets

The Table 47 describes the categories of the business respondents based on the
amount of coffee they consume per day.
Table 47 Daily Consumption of Coffee Powder by the Business Markets
S.No

Category

Type of Business
Bakeries

1.
2.
3.
4.

I
(Upto 1 kg per day)
II
(1 to 3 kg per day)
III
(3 to 5 kg per day)
IV
(5 to 10 kg per day)
Total

Total
Hotels

16

18

(70)

(12)

(45)

10

17

(30)

(58)

(43)

(0)

(12)

(5)

(0)

(18)

(7)

23

17

40

(Figures in parentheses indicate percentage to Total)

The Table 47 tells that in the bakeries category, the majority (70 per cent) of the units
used less than a kg of coffee a day followed by 30 per cent of the units used 1 to 3 kg a day.
In the hotels category, the majority (58 per cent) of the members were found consuming 1 to
3 kg a day followed by those who used 5 to 10 kg a day (18 per cent).

5.4.9 Cuppage per kg of Coffee Powder

The cuppage or the number of cups made using a kg of coffee powder in both the
categories was given in the Table 48.

Table 48 Cuppage per kg of Coffee Powder

S.No

Cuppage per kg of
Coffee Powder

1.

25.00

2.

30.00

3.

35.00

4.

40.00

5.

42.00

6.

45.00

7.

50.00

8.

60.00

9.

100.00

10

120.00
Total

Type of Business
Bakeries

1
(4)
8
(35)
9
(40)
3
(13)
1
(4)
1
(4)
0
(0)
0
(0)
0
(0)
0
(0)
23

Hotels

Total

0
(0)
1
(6)
1
(6)
2
(12)
0
(0)
2
(12)
2
(12)
2
(12)
5
(28)
2
(12)

1
(2.5)
9
(22.5)
10
(25)
5
(12.5)
1
(2.5)
3
(7.5)
2
(5.0)
2
(5.0)
5
(12.5)
2
(5)

17

40

(Figures in parentheses indicate percentage to Total)

From the Table 48, it is clear that the majority (40 per cent) of the bakeries were
getting around thirty five cups per kg followed by those getting 30 cups per kg (35 per cent).
In the hotels category, around 100 cups per kg was obtained by 28 per cent of the members in
the category. This difference was believed to be caused by the type of coffee used by the two
categories i.e bakeries use instant coffee and the hotels were using roast and ground coffee
mixed with chickory.
5.4.10 Quantity purchased by the sample respondents
The details on the quantity purchased by the sample business respondents are
furnished in Table 49.

Table 49 Quantity purchased by the sample respondents

S.No

Category

1.

1 to 5 kg

2.

5 to 10 kg

3.

10 to 20 kg

4.

20 to 50 kg

5.

50 to 75 kg

Type of Business
Bakeries

Total

Total

Hotels
9

(39)

(0)

(23)

10

15

(44)

(29)

(37)

(17)

(24)

(20)

(0)

(41)

(17)

(0)

(6)

(3)

23

17

40

(Figures in parentheses indicate percentage to Total)

From the Table 49, it is known that majority (44 per cent) of the members in the
bakeries purchased around 5 to 10 kg per purchase followed by 39 per cent purchasing less
than 5 kg at a time and 17 per cent purchasing 10 to 20 kg. In the hotels category, the
majority of the members were found purchasing around 20 to 50 kg per purchase followed by
29 per cent purchasing 5 to 10 kg per purchase.
5.4.11 Pack Size Purchased
The details on the pack sizes purchased by the sample business respondents were
presented in the Table 50.

Table 50 Pack Size Purchased

S.No

Pack Size
Purchased

Type of Business
Bakeries

Total

Hotels
20
(87)

0
(0)

20
(50)

3
(13)
0
(0)
0
(0)
0
(0)

0
(0)
1
(6)
5
(29)
3
(18)

3
(7.5)
1
(2.5)
5
(12.5)
3
(7.5)

5.00

0
(0)

1
(6)

1
(2.5)

10.00

0
(0)

7
(41)

7
(17.5)

Total

23

17

40

1.

500 gm

2.

1 kg

3.

1.5 kg

4.

2 kg

5.

3 kg & more

6.
7.

(Figures in parentheses indicate percentage to Total)

From the table 50, it could be concluded that majority of the bakeries were found
purchasing the 500 gm pack size. The reason being attributed to this was ease of handling
and to maintain the freshness by opening the packets one after another. Among the members
of the hotel business 41 per cent purchased the 10 kg pack as majority of them purchase
around 20 to 50 kg per purchase. This also had been justified by the fact that it eases the
handling and maintaining the freshness of the coffee powder until next purchase. Two kg
pack was also found popular among the hotels and being used by around 30 per cent of the
members.
5.4 .12 Price of a cup of Coffee
The information on the price of a cup of coffee sold by the sample business
respondents is presented in the Table 51.

Table 51 Price of a cup of Coffee

S.No

Price of a Cup of
Coffee (in Rs.)

1.

3.50

2.

4.00

3.

4.50

4.

5.00

5.

5.50

6.

6.00

7.

6.50

Type of Business
Bakeries
Hotels
1
0
(4)
(0)
12
0
(53)
(0)
7
0
(31)
(0)
1
0
(4)
(0)
0
10
(0)
(58)
2
4
(8)
(24)
0
3
(0)
(18)

Total

23

Total

17

1
(2.5)
12
(30)
7
(17.5)
1
(2.5)
10
(25)
6
(15)
3
(7.5)
40

(Figures in parentheses indicate percentage to Total)

The commonly found price of a cup of coffee among the bakeries was Rs.4.00 that
was fixed by 30 per cent of the bakeries while 31 per cent of the bakeries fixed Rs.4.50 per
cup. The common price point of the hotel businesses was Rs. 5.50 (fixed by 58 per cent of
the hotels) and Rs.6.00 (fixed by 24 per cent of the hotels).
5.4.13 Sales of Coffee (Cups per Day)
The particulars on the sales of coffee per day are furnished in the Table 52.
Table 52 Sales of Coffee (Cups per Day)
S.No

Coffee Sales
(Cups per day)

1.

Less than 50

2.

50 to 100

3.

100-150

4.

More than 150

Total

Type of Business
Total
Bakeries
Hotels
9
4
13
(39)
(24)
(33)
12
3
15
(52)
(18)
(37)
2
7
9
(9)
(40)
(22.5)
0
3
3
(0)
(18)
(7.5)
23
17
40
(Figures in parentheses indicate percentage to Total)

Table 52 reveals that fifty two per cent of the bakeries were selling around 50 to 100
cups of coffee a day followed by 39 per cent selling less than 50 cups of coffee a day. Among
the hotels 40 per cent were selling 100 to 150 cups of coffee a day while 24 per cent were
found selling less than 50 cups of coffee a day.
5.4.14 Margin per Cup (Rs.) Obtained
The information on the margin (Rs. per cup of Coffee) obtained by the sample
business respondents is given in the Table 53.
Table 53 Margin per Cup (Rs.) Obtained
S.No

Margin per cup of

Coffee (in Rs.)

1.

Rs.1 to Rs.2

2.

Rs.2

3.

More than Rs.2

Type of Business
Bakeries

Total

Total

Hotels

7
(30)

3
(18)

10
(25)

9
(40)
7
(30)

5
(29)
9
(53)

14
(35)
16
(40)

23

17

40

(Figures in parentheses indicate percentage to Total)

From the Table 53, it is inferred that 40 per cent of the bakeries got Rs. 2 as margin
per cup of coffee. For the hotels, the margin was found to be more than Rs. 2 obtained by
around 53 per cent of the hotels followed by 29 per cent of the hotels getting a margin of
Rs.2 per cup of coffee.
5.4.15 Awareness of Different Coffee Brands among the Business market respondents
The awareness levels of different coffee brands among the respondents of the
business markets are presented in the Table 54.

Table 54 Awareness of Different Coffee Brands among the Business markets

S.No

Brand

Bakeries
N=23

Aware
Hotels
N=17

14
(61)

15
(88)

29
(73)

9
(39)

2
(12)

11
(27)

Total
N=40

Unaware
Bakeries Hotels
N=23
N=17

Total
N=40

1.

Coffee Day

2.

Narassus

23
(100)

17
(100)

40
(100)

0
(0)

0
(0)

0
(0)

3.

Kannan Jubilee

23
(100)

17
(100)

40
(100)

0
(0)

0
(0)

0
(0)

4.

Green Label

23
(100)

17
(100)

40
(100)

0
(0)

0
(0)

0
(0)

5.

Narassus
Udhayam

20
(87)

15
(88)

35
(88)

3
(13)

2
(12)

5
(12)

6.

Coorg

13
(57)

13
(76)

26
(65)

10
(43)

4
(24)

14
(35)

7.

Bru

23
(100)

17
(100)

40
(100)

0
(0)

0
(0)

0
(0)

8.

Sunrise

23
(100)

17
(100)

40
(100)

0
(0)

0
(0)

0
(0)

9.

Raja Coffee

23
(100)

17
(100)

40
(100)

0
(0)

0
(0)

0
(0)

(Figures in parentheses indicate percentage to Total)

It could be observed that the brands Narassus, Kannan Jubilee, Brooke Bond Green
Label, Brooke Bond Bru, Nescafe Sunrise and the local brand Raja Coffee were to get cent
per cent awareness levels and known to all of the sample respondents. Coffee Day had a
marginally higher level of awareness (88 per cent of the hotels) among the hotels category of
the business markets over the bakeries category, which had around 61 per cent of awareness
of Coffee Day.

5.4.16 Mean Scores for the Ranking of the factors

The ranking of factors that influence the purchase decisions upon their importance
and the brand choice of the business markets were presented in Table 55.
Table 55 Mean Scores for the Ranking of the factors
S.No

Factors

Type of Business
Bakeries

Hotels

1.

Price

3.00

3.00

2.

Cuppage

3.00

3.00

3.

Consumer Preference

2.26

2.82

4.

Timely Supply

3.00

2.88

5.

Credit

3.00

2.23

6.

Margin

3.00

2.94

7.

Solving Complaints

2.47

2.29

8.

Advertising Support

2.26

2.05

9.

Coupons

1.17

1.41

10

Price Offs

2.08

2.35

11.

Bonus packs

1.95

1.52

12.

Quantity Rebate

2.13

1.88

13.

Free Offers, Novelties

1.39

1.47

From the mean scores given in the Table 55, it could be inferred that the factors like
price, cuppage, timely supply of materials and the margin were considered very important
while choosing a particular brand. All the other factors were ranked by the respondents to fit
in the region of being not so important to important. The two categories differ significantly in
ranking the factors viz., consumer preference and credit. As majority of the hotels obtained
their requirement of coffee from their own sources, the credit was perceived to be less
important as against the bakeries relied very importantly on the credit factor. Similarly, the
consumers preference was considered nearly important in the bakeries segment while it was

regarded as a very important one in the hotels segment which was one of the reason for the
hotels to source from their own source to give an unique taste to the coffee offered therein.
5.5.16 Mean Scores of rating of the suppliers

The ratings of the suppliers of coffee based on the following quality and
promotional aspects were given in the Table 56.
Table 5.5.16 Mean Scores of Rating of the Suppliers
S.No

Factors

Type of Business
Bakeries

Hotels

1.

Price

2.69

3.00

2.

Cuppage

2.86

3.00

3.

Consumer Preference

2.86

2.88

4.

Timely Supply

2.52

2.82

5.

Credit

2.52

2.44

6.

Margin

2.78

2.44

7.

Solving Complaints

2.39

2.33

8.

Advertising Support

2.21

2.00

9.

Coupons

2.08

2.00

10

Price Offs

2.04

2.66

11.

Bonus packs

2.00

2.00

12.

Quantity Rebate

2.13

2.00

13.

Free Offers, Novelties

2.08

2.22

From the mean scores obtained from the Table 56, the respondents were found to be
almost satisfied with regard to the factors like price, cuppage, consumers preference of the
particular brand of coffee, and the margin earned per cup of coffee. Their responses were in
the region of neutral to satisfied, for all other factors like timely supply of materials, credit
and the promotional programmes viz., coupons, rebates etc. The factors such as promotional
programmes would not be applicable to those hotels who purchased coffee from their own
source.

CHAPTER VI
SUMMARY AND CONCLUSION
In this chapter, a compendium of the work undertaken, tools used and the results of
the study are presented and conclusions are drawn based on the empirical results obtained.
The study was undertaken as a project work for M/S Amalgamated Bean Coffee Trading
Company (ABC), Bangalore; on their premium quality R&G Coffee powder brand Coffee
Day in Coimbatore city.
The study was designed to examine the coffee consumer segments in Coimbatore
city; to assess the brand equity of Coffee Day in the city; to evaluate the effectiveness of
promotional programmes of Coffee Day among the consumers and to analyse the buying
behaviour of the business markets in the city.
For the study, the universe comprised of the Coimbatore city and sample included
260 consumers, 20 each from 13 different locations in the city and 40 business units such as
bakeries and hotels selected randomly.
Based on the attitude of the consumers towards the brands, they were classified into
three clusters and the clusterwise information regarding the coffee drinking behaviour
including the frequency, coffee brands used, years of usage, place of purchase, purchase
frequency as well as the general characteristics such as number of adults as well as children
in the family and their coffee drinking frequency, monthly household income and media
usage etc., were collected. From the responses towards the quality attributes of the brand
Coffee Day, the brand equity of the brand was estimated. The responses pertaining to the
promotional programmes including advertisements introduced by the brands and their
effectiveness in terms of recall and the media through which the consumers received the
information were collected. For the business markets, their purchase behaviour was studied
based on the information on the experience in the business, brands used, purchase frequency,
daily consumption and cuppage details and their responses towards the services of the
suppliers were collected. The summary of the results of the study follows.

General Characteristics of the Respondents

Among the three clusters, the third cluster was almost half of the size (51 percent) of
the total sample respondents followed closely by the second cluster (42 percent).
More than 90 per cent of the households in all the three clusters were drinking coffee
in their home and 7 per cent of the total respondents drink only tea in their home. One cup of
tea was consumed by 12 per cent of the coffee drinking households and two cups of tea was
consumed by 6 per cent of them per day. Roast & Ground type of coffee was consumed by
majority of the consumers followed by the instant coffee. Habit and taste preference were the
main reasons quoted for such behaviour.
The second cluster was dominated by the Narassus users while the third cluster was
dominated by the users of Coffee Day. Among the brands, Coffee Day was used by 25 per
cent of the sample respondents followed by Narassus in the R&G category. Deluxe Green
Label in the packaged category and Brooke Bond Bru in the instant category were used
mostly by the regular coffee drinking households. Narassus was mostly used by the
occasional users followed by Nescafe Sunrise.
Households with two adults drinking at least two cups of coffee a day were found
commonly in the second and the third clusters. But households with one child drinking one
cup of coffee a day were found commonly. Significantly, children were found drinking
coffee rarely.
Narassus, Kannan Jubilee, Green Label, Bru and Sunrise were known to all of the
respondents whereas Coffee Day was known only to 58 per cent of them totally. The
awareness was high in the third cluster because of the concentration of its users in the cluster.
About 35 per cent of the sample respondents were unaware of Coffee Day and the
unawareness was high in the second cluster. Among the chicory mixed users, 80:20 mix was
found most commonly used.
Coffee Day was used by its users for around two to five years whereas brands like
Narassus, Kannan Jubilee, Green Label and Bru were used by their respective users for
around ten or more years.

Among the respondents, once a week and once a month purchases were found
common and a significant mass of respondents purchased coffee loosely from the estates
directly.
Exclusive stores were the only outlets for selling Coffee Day whereas Narassus and
Kannan Jubilee brands were sold in departmental stores also significantly apart from their
exclusive outlets.
Due to convenience and ease of using 250 grams pack was preferred most by the
consumers in the R&G category and 100 grams in the packaged and instant category.
Attitude towards the Brands
In the first cluster, the consumers were very much loyal to the brands they use. In
contrast, the consumers in the third cluster were skeptical about the brands they use as
reflected from their responses. They concentrated more on the availability and promotions
offered by the brands.
The second cluster was in between the above two. The respondents were cautious
about the availability. The non users of Coffee Day in this cluster were nearly not sure of
trying it in future.
From the ranking of factors on their importance, expectedly aroma, taste, strength,
availability and price were ranked very important in all the three clusters. Brand popularity,
promotions and product display were ranked nearly important. Typically, the members of the
third cluster considered promotions than the other two clusters as an important factor while
making purchase decisions.
Regarding the sales promotions, the members of the third cluster were nearly not sure
whether the sales promotions were necessary or they actively participate in the promotional
programmes and the image of the brand was improved due to the programmes.
The television and radio had penetrated more than 90 per cent of the sample
households and most of them listen to radio at least two hours a day. About 50 per cent of the
respondents read at least one newspaper in their home and The Hindu had been read by
nearly 40 per cent of the total respondents. About 41 per cent of the total respondents were

reading at least one magazine in their home and Ananda Vikatan had been read by around 45
per cent of them.
A significant mass of respondents were found falling in the income group of Rs.7000
to Rs.10000 p.m.
Brand Equity of Coffee Day
The brand was hailed nearly excellently with regard to the attributes like aroma, taste,
strength and product display. The users of Coffee Day were much inclined to continue, to
recommend it to others and to regard it Value for Money and were neutral in their attitude
in trying out new brands in the market.
But the users were wary about the availability and the price of the brand. They were
likely to switch to other brands in the case of non-availability and increased price.
The awareness factor contributed only a third to the equity index of the brand
reiterating the need for improving awareness among the consumers. Loyalty index was found
contributing another 30 per cent to the overall brand equity index while the quality index
contributed the rest of it.
Effectiveness of the Promotional programmes
Majority of those who recalled promotions of Coffee Day were its users and users of
other brand could not recall it except very few. But brand like Green Label, Narassus, Bru
and Sunrise were recalled better even by their non-users.
Among the promotional programmes, Sugar Free scheme, Membership Discount
scheme and Pet Jar free scheme were mostly recalled by the Coffee Day users in the given
order.
Among the media, the In-Shop POP materials were the major source of information
about the promotions introduced by Coffee Day and home to home campaigns also
contributed significantly for the recall of the promotions introduced by Coffee Day.
Business Markets
Among the sample business markets respondents, 58 per cent were bakeries and the
remaining were hotels. The majority of them were running their business for around five to

ten years. The awareness of Coffee Day was marginally higher among the hotels than the
bakeries.
The bakeries were using only instant coffee and the majority of the hotels were using
R&G coffee. Brooke Bond Bru was the major brand used by the bakeries while 47 per cent
of the hotels were using their own R&G coffee and Narassus was used by around 18 per cent
of the hotels.
Majority of the bakeries purchased once a week and around five to ten kg and the
most preferred pack size was 500 gm and mostly from the distributors. In contrast, majority
of the hotels purchased once a week and a third of them purchased twice a month purchasing
around 20 to 50 kg in a single purchase from their own source. The main reasons like
reduced price and obtaining unique taste were quoted for purchasing from their own source.
Majority of the bakeries consumed less than a kg of coffee powder a day while majority of
the hotels consumed around three to five kg in a day.
The cuppage differs widely from 30 cups to 120 cups per kg of coffee powder in the
hotels category and about 28 per cent of the hotels were getting a cuppage of 100 cups for a
kg of coffee powder. Among the bakeries, the commonly observed cuppage were around 40
cups and 30 cups per kg of coffee powder.
Around 35 per cent of the hotels used 60:40 mix commonly while 24 per cent of the
hotels did not disclose their blend as it was unique to their shops.
The sales of coffee were commonly around 50 to 100 cups a day in the bakeries and
100 to 150 cups a day in the hotels. In the bakeries, a cup of coffee was priced at around Rs.4
while in the hotels it was Rs.5.50. The margin per cup was around two rupees per cup for
majority of the bakeries while the majority of the hotels obtained more than two rupees
margin per cup of coffee.
Price, cuppage, margin and credit were considered most important by the sample
business units. The hotels purchased their own coffee powder ranked the consumers
preference and margin as very important factors.

Recommendations
Product
As the users of Coffee Day rated the brand excellent or good on its quality attributes,
efforts must be taken up to still improve or at least to maintain the quality of the brand. The
consumers are very much sensitive to a specific taste or blend or brew and coffee is an
acquired habit. Hence, the taste and other quality aspects must be maintained diligently to
successfully retain the customers.
Price
From the results, it is clear that the consumers are very much cautious about the price.
Especially, the Coffee Day customers were very particular about the price of the brand and
were more likely to switch to other cheaper brands as they disagreed to stick to the brand if
the price is increased. Hence, any attempt to increase in the price of the brand might cause
the customers switch to other relatively cheaper brands consequently.
Place
The results showed that the customers were likely to change the brand if it is not
available within their reach. As there are threats from other brands like Narassus, Kannan
Jubilee, Bru and Nescafe which are easily available in the nearby departmental stores, efforts
must be taken to ensure that the customers are getting Coffee Day within their vicinity and
at their convenience.
The only store that is found suffering due to poor visibility and congestion problems
was the one at Raja Street which was in the area dominated with whole sale trade. Hence,
efforts must be taken up to improve its visibility through setting up signal boards leading to
the store and if feasible shifting it to another convenient place free of congestion and with
ample parking space for the vehicles to increase the foot falls.
Promotion
The responses of the Coffee Day customers towards the sales promotions revealed
that few promotions like Sugar Free scheme and Membership discount scheme were
attractive and easily recalled. Hence, those schemes might yield desired results and may well
be continued in future.
In contrast, the consumers in the third cluster (where majority of the Coffee Days
customers fall) were not sure of their stance with regard to statemets like promotions are

necessary, they actively take part in the promotions and the brand image is enhanced due to
the promotions. In this context, the effectiveness of the promotional programmes comes
under severe criticism and the promotions may well be doubted for their worthiness in
achieving their intended results.
Suggestions for Successful Brand Building
In order to achieve desired long term marketing objectives, the brand building
exercise is to be strong, consistent and sustaining. Although the results are generated very
slowly, the ultimate fruits will be improved brand knowledge among the users as well as the
non-users of the brand, enhanced brand loyalty and responsiveness towards the marketing
programmes among the brands customers and eventually a strong and positive brand equity
to leverage on.
Creating Brand Awareness
Through consistent and sustained advertising the brand awareness and brand
knowledge can be increased.
Among the print media, advertising in the English daily newspapers such as The
Hindu, The Indian Express and Tamil dailies like Dinamalar and Dinathanthi might be
considered to reach the target market.
Advertising in the magazines such as Anandavikatan, Kalki and Bhakti Kumudam in
the general interest category and Aval Vikatan and Mangayar Malar in the Women Special
category may be considered
As most of the consumers tuned in to the FM radio programmes for more than two
hours a day, it can be used to reach out to the target audience economically besides
television.
Apart from the above conventional media, there are also potential non-conventional
media to rely on to create brand awareness at an economic cost.
i.

In-Store Advertising using attractive POP materials such as danglers, posters, wall
papers and glow signs bearing the brand name, logo or specialties of the brand would

help in evoking positive emotional associations in the minds of the consumers

towards the brand at the time of purchase;
ii.

Mini bill boards bearing the brand name and logo can be installed along the bus-stops
and in other public places to increase the brands salience. It may serve the purpose of
reminder advertising and aid in faster brand recall for the consumers;

iii.

Transit advertising in the vehicles may well support the brands recall and recognition
by the consumers.

iv.

Printing the brand messages on the packaging materials and in the rear side of the
cash bills may serve as a reminder for the consumers;

v.

Setting up Coffee Days coffee vending machines in public places and the premises
of the educational institutions and factories may well enhance the brands public
presence.

vi.

Projecting slides in Cinema Theatres offers a supportive role to the aforesaid

measures and aid in creating brand awareness.

Managing Brand Image

All the communication and display materials in and out of the stores must necessarily
be prepared in the local language, Tamil, to evoke a sense of familiarity and local image for
the brand among the consumers;
Attractive and familiar Sub-Brand names (preferably Tamil names) may be attached
to the existing brand name Coffee Day for the popular or the fast moving coffee blends;
Managing Promotional Programmes
It is advisable to trim down the number and frequency of the promotional
programmes keeping only the well performing ones such as the Free Sugar scheme and the
Membership Discount scheme and divert a part of the resources in order to concentrate on
other long term brand building measures.
More attractive promotional programmes like the Membership Discount scheme have
to be designed to pass on to the customers, the benefits of being loyal to the brand resulting
enhanced customer retention.

BIBLIOGRAPHY
BOOKS
Aaker, D, Building Strong Brands, New York: The Free Press, 1996
Aaker. D, Managing Brand Equity,New York: The Free Press,1991
Aaker.D, Strategic Marketing Management, John Wiley & Sons Inc., USA, 2000
Al Ries and Jack Trout, Positioning, Warner Books, New York, 1993.
American Marketing Association, Marketing Definitions A Glossary of Marketing
Terms, Chicago: American Marketing Association, 2001 p.35.
Batra Rajeev, Myers.J.G, and Aaker D.A, Advertising Management, Prentice-Hall of
India Pvt. Ltd., New Delhi, 1996.
Blankenship.A.B and Breen.G.E, State-of-the-Art Marketing Research, NTC Business
Books, Illinois, USA, 1999. pp: 313 315.
Boyd Jr. H.W, Westfall. R, and Stasch.S.F, Marketing Research Text and Cases, All
India Traveller Book Sellers, Delhi, 1998.
Brown, G., People, Brands and Advertising, Millward Brown International, NY, 1992.
Buzzel R.D., Mathews, J.B. and Lovitt T, Quoting American Marketing Association in
Marketing - An Introductory Analysis, New York: Mc Graw Hill Book Company,
1975, p. 13.
Cundiff E.N. and R. Still, Basic Marketing Concepts, Environment and Decision, New
Delhi: Prentice Hall of India private Ltd., 1968 , p.21.
Green Paul, Tull Donald, and Albaum Gerald, Research for Marketing Decisions,
Prentice-Hall of India Pvt.Ltd, New Delhi, 1998.
John C. Narvar and Ronald Savitt, The Modern Marketing Economy An Analytical
Approach, New York: Holt, Rinchart and Winston Inc., 1971, p.4.
Johnson.R.A, Wichern.D.W, Applied Multivariate Statistical Analysis, Prentice-Hall of
India Pvt. Ltd, New Delhi, 2001.

Kania, Deborah, Online Branding for Marketing Success, NTC Business Books, Illinois,
USA, 1998, pp: 86-90.
Kapferer,J.N, Strategic Brand Management New Approaches to Creating and Evaluating
Brand Equity, Free Press, NY, 1992.
Keller, K.L. Strategic Brand Management, 1998, Prentice-Hall, Englewood Cliffs, NJ.
Kotler Philip, Principles of Marketing, New Delhi:Prentice-Hall of India Ltd.,2000, p.121.
Larson Adlowe L, Agricultural Marketing, New York: Prentice Hall Inc., 1953, pp: 33-34.
McDaniel. C and W.R. Darden, Marketing, Allyn and Bacon, Inc. Boston, 1987, p.732
Mehta Subash C., Indian Consumers, New Delhi: Tata McGraw Hill Publishing Company
Ltd., 1974 p.8.
Nair,

K.N.,

Paul

John and W. George,

Marketing and Sales Promotion,

Delhi: Himalayas Publishing House, 1986, p.5.

Pyle C., Marketing Principles, New York: Mc Graw Hill Book Company, 1956,pp.24-25.
Ramaswamy.V.S

and

Namakumari.S,

Marketing

Management

Planning,

Implementation & Control, Macmillan India Ltd, New Delhi, 1990.

Rom Markin, Marketing Strategy and Management, New York: John Wiley and Sons,
1982 p.635.
Rossiter. J.R, Percy.L (1987) "Advertising and Promotion Management", McGraw-Hill:
Singapore.
Sommers, M.S. (1963), "Product Symbolism and the Perception of Social Strata." Toward
Scientific Marketing. Stephen A. Greyser, Editor (Chicago: American Marketing
Association) 200-216.
Stanton William.J., Fundamentals of Marketing, New Delhi: McGraw Hill Book
Company, 1984, P-74.
Stanton, W.T., Etzel, M.J., and Walker, B.J., Fundamentals of Marketing, 9th Edition.,
McGraw-Hill, NY, 1991.

Sutherland, Max, Advertising and the Mind of the Consumer, Allan & Irwin Publishing
Co Ltd., Australia, 1993.
Thomas K.T., Marketing Principles, New Delhi: Mc Graw Hill Book Co., 1984, p.74.
Tousley R.O, Clark.E and E.E. Clark, Principles of Marketing, London: The Macmillian
Company Inc.,1962, p.10.
JOURNALS and PERIODICALS
Anonymous, A Heuristic Model for Evaluating Advertising Effectiveness, Indian Journal
of Marketing, 15(4), December 1984.
Arvind Korba, I, Marketing concepts and small scale sector, Indian Journal of Marketing,
13(4), 1982, pp: 19.
Balarami Reddy.S, Marketing of Cotton in India, Indian Journal of Marketing, 13(11-12),
1983.
Basker Iyer, Is the Consumer really Involves, Indian Management, 29(2), 1990, pp: 17-20.
Bhatt Gopal R., Consumerism: Concept and its Need in our Era, Indian Journal of
Marketing, 15(12), 1985, pp: 3-8.
Lassar. W, Mittal. B and Sharma. A, Measuring Customer-based Brand Equity, Journal
of Consumer Marketing, 12(4), 1995, pp. 11-19.
Bishwambhar, Values in Orientation in Marketing Management, Indian Journal of
Marketing, 27(1), 1986, pp: 21-22.
Brandt .D.R, Attitude Does Matter, Burke White Paper Series, 2(6), 2000.
Bristow.D.N, Schneider.K.C, and Schuler.D.K The Brand Dependence Scale: Measuring
Consumers' Use of Brand Name to Differentiate among Product Alternatives,
Journal of Product & Brand Management, 11(6), 2002, pp. 343-356.
Chan-Olimsted.S.M and Kim.Y, The PBS Brand versus Cable Brands: Assessing the
Brand Image of Public Television in a Multichannel Environment, The Journal of
Broadcasting and Electronic Media, 2000.

Chen.A, Using Free Association to Examine the Relationship Between the Characteristics
of Brand Associations and Brand Equity, Journal of Product and Brand
Management, 2001, 10(7), pp: 439-451.
Devi, Nirmala. S, Brand Management, Indian Journal of Marketing, 31(11-12), 2001.
Farquhar, P.H.,"Managing Brand Equity", Marketing Research, 1, 1989, pp: 24-33.
Feldwick, P., Do We Really Need Brand Equity?, Journal of Brand Management, 4(1),
1996, pp: 9-28.
Gensch, D.H.,"Image-Measurement Segmentation." Journal of Marketing Research, 15
(August), 1978, pp: 384-395.
Gupta H.P. and Raghbir Singh. Consumers Brand Choice Behaviour for Televisions,
Indian Journal of Marketing, 19(6-7), 1989, pp: 17-22.
Haynes. A, Lackman.C, and Guskey.A, Comprehensive Brand Presentation: Ensuring
Consistent Brand Image, Journal of Product & Brand Management, 8(4), 1999,
pp: 286-300.
Hutton, J, A Study of Brand Equity in an Organizational- Buying Context, Journal of
Product & Brand Management, 6(6), 1997, pp: 428-439.
Jaffarulla. A, Techiques to Measure Effectiveness of Advertisements, Indian Journal of
Marketing, 11(6), 2000, pp: 3-9.
Karen Halliburton and Shida Rastegari Henneberry, US Overseas Promotion Programs
for Peanuts: An Examination of Trade and Market Development, Agribusiness, 9(6),
1993, pp: 569-583.
Keller, K.L., Conceptualizing, Measuring, and Managing Customer-Based Brand Equity,
Journal of Marketing, 57 (January), 1993, pp: 1-22.
Kish.P, Riskey.D.R and Kerin .R.A, Measurement and Tracking of Brand Equity in the
Global Marketplace -The Pepsico Experience, International Marketing Review,
18(1), 2001.
Kohli, A. & Jaworski, B, Market Orientation: The Construct, Research Propositions, and
Managerial Implications, Journal of Marketing, 54 (April), 1990, pp. 118.
Levy, S.J. "Symbols By Which We Buy." Advancing Marketing Efficiency, American
Marketing Association, December 1958, pp: 409-416.

Low.G and Lamb. Jr,, The Measurement and Dimensionality of the Brand Associations,
Journal of Product & Brand Management, 9(6) 2000, pp: 350-368.
Macdonald, Emma and Sharp, Byron, Management Perceptions of the Importance of
Brand Awareness as an Indication of Advertising Effectiveness, Marketing Research
On-Line, Vol. 1, 1996.
Mackay, Marisa. M, Application of Brand Equity Measures in Service Markets, Journal
of Services Marketing, 15(3), 2001, pp: 210-221.
Manmohan Singh. Marketing and Marketing Management in an Organization, Indian
Journal of Marketing, 17(1), 1986, pp: 21-22.
Myers, Chris.A, Managing Brand Equity: A Look at the Importance of the Attributes,
Journal of Product & Brand Management, 12(1), 2003, pp: 39-51.
Na.W.B, Marshall. R and Keller K.L, Measuring Brand Power: Validating A Model for
Optimizing Brand Equity, The Journal of Product & Brand Management, 8(3), 1999,
pp: 170-184.
Naik, Marketing of Textiles and Consumer Behaviour A case Study of Belgaum City,
Indian Journal of Marketing, 22 (9-12): 1994, pp: 10.
Padolecchea, S.P. Marketing and challenges of future Marketology, 1984, 16(2), p: 26.
Parish.R.M, Possibilities for Promoting Farm Products, Australian Journal of Agricultural
Economics, 7(1), 1973, pp: 27-36.
Pohlman, A., and Mudd, S. "Market Image as a Function of Group and Product Type: A
Quantitative Approach." Journal of Applied Psychology, 57(2), 1973, pp: 167-71.
Pope, K, Computers: They're No Commodity, The Wall Street Journal, October 15, 1993.
Prasad Bhawani.G.V and Kumari Sita.Ch., Impact of Advertising on Consumer Durables
Market A Study of Refrigerator Consumers, Indian Journal of Marketing, 17(4),
1985.
Prasad.K and Dev.S.K, Managing Hotel Brand Equity: A Customer-Centric Framework for
Assessing Performance, Cornell Hotel and Restaurant Administration Quarterly,
41(3), 2000, pp: 22 31.

Rajendran Arun, Building A Brand By Living its Values, Indian Management, 42(4),
April 2003, pp: 9-10
Rossiter, John. R and Ang, Lawrence, Brand Equity Building for New Brands via
Appropriate Advertising Symbol Selection, European Advances in Consumer
Research, 1, 1993, pp: 125-132.
Rubinson, Joel, Equity-Based Management, Marketing Research, 5(3), Summer 1993,
pp: 6-11.
Shekar.V. Informaion system for Promotion management, Indian Journal of Marketing
25(9), 1996, pp: 3-4.
Sinha Tara, Steps in Planning an Advertising Campaign, Indian Journal of Marketing,
2(6), 1972, pp: 13-22.
Srinivasan.V, Park.C.S, Chang. Dae. R, Equitymap: Measurement, Analysis and
Prediction of Brand Equity and its Sources, Research Paper No. 1685, April 2001,
Research Paper Series, Graduate School of Business, Stanford University.
Steven.S.N, Sprott. D. E. and Pascal V. J., Relating Consumer-Based Sources of Brand
Equity to Market Outcomes,Advances in Consumer Research, 26, 1999, pp:352-358.
Subrahamanyam, G., Ramakrishna and Prasad. B.R.S, Handloom Marketing A Study
of Consumer Behaviour, Indian Journal of Marketing, 15(6), 1985, pp:15-20,.
Sundara.R.K and Shailaja. D.N, Advertisements A Tool in Sales Promotion Technique,
Indian Journal of Marketing, 11(6), 2000, pp: 24-27.
Venkatram.R and Satish Y. Deodhar, Dynamic Demand Analysis of Indias Domestic
Coffee Market, IIMA Working Paper, No.99-11-05
Vyas Parimal.H, Advertising and Media Trends in India, Marketology, July-Dec, 1987
pp: 38-41
Winters, Lewis.C, Brand Equity Measures: Some Recent Advances, Marketing Research,
3(4), December 1991, pp: 70-73.
Wood. L, Brands and Brand Equity: Definition and Management, Management Decision,
38(9), 2000, pp: 662-669.

Yoo.B and Donthu.N, Developing and Validating A Multidimensional Consumer-Based

Brand Equity Scale, Journal of Business Research, 52, 2001, pp: 1 - 14
BUSINESS NEWSPAPERS
Ghosal Subhas, Excerpts from the chapter Creating Better Advertising of the book The
Making of Advertising Gleanings from Subhas Ghosal (A speech delivered at a
Hindustan Lever Marketing Seminar on the 27th June, 1972), The Hindu Business
Line, Catalyst, 27th February, 2003.
OTHER RESOURCES
Anonymous, Consumer Protection Act, Allahabad: Central Law Agency, 1986, pp: 1-3.
Anonymous report Mysteries of Brand Equity Revealed
Kamakura, W.A. and Russell, G.J., Measuring Consumer Perceptions of Brand Quality
with Scanner Data: Implications for Brand Equity, Report Number 91-122, 1991,
Marketing Science Institute, Cambridge, MA.
Leuthesser, L., Defining, Measuring and Managing Brand Equity, A conference
Summary, 1988, Marketing Science Institute, Cambridge MA.
International Herald Tribune, October 22, 2002.
Times Food Processing Journal, Feb-Mar, 2003.
WEB REFERENCES

Arruda.W

Three

Cs

of

Branding,

www.clickz.com/brand/brand_mkt/article.php

http://gisd.tn.nic.in/census-paper2/

http://in.biz.yahoo.com

http://www.agribuzz.com

http://www.agriculture-industry-india.com/agricultural-commodities/coffee.html

http://www.agroindia.org/agroindia/PlantationCrops/coffeeindia.htm

http://www.blonnet.com

http://www.burke.com/bmr

2003,

http://www.coffeeday.com

http://www.coimbatore.com

http://www.coimbatore.net

http://www.coimbatore.tn.nic.in

http://www.coimbatore-corporation.com

http://www.domain-b.com

http://www.emaraldinsight.com

http://www.estrategicmarketing.com

http://www.expresshotelierandcaterer.com

http://www.expressindia.com/fe

http://www.financialexpress.com

http://www.indiaagronet.com/

http://www.indiacoffee.org

http://www.indiacoffee.org/newsletter

http://www.indiainfo.com

http://www.indiainfoline.com

http://www.indiaonestop.com/markets/coffee/overview.htm

http://www.indiatimes.com

http://www.magindia.com/manarch

http://www.mapsofindia.com/tnmaps

http://www.onlinebangalore.com

http://www.rchindia.org

http://www.tata.com/tata_coffee

http://www.teaandcoffee.net

http://www.thehindubusinessline.com

http://www.tn.nic.in/tnudp/coimbatore.htm

ANNEXURE I
Table 7.1 Statewise Production of Coffee in India (2003 2004)
2002/03- POST MONSOON FORECAST
Arabica
Robusta
Total

State/District
Karnataka
Chikmagalur
Coorg *
Hassan
Kerala
Wyanad
Travancore
Nelliampathies

Sub Total

43,850
23,950
17,250
85,050

31,125
68,625
6,500
106,250

74,975
92,575
23,750
191,300

Sub Total

75
650
450
1,175

54,050
7,650
1,550
63,250

54,125
8,300
2,000
64,425

6,475
1,350
2,900
1,500
12,225

275
2,800
0
450
3,525

6,750
4,150
2,900
1,950
15,750

Tamilnadu
Pulneys
Nilgiris
Shevroys (Salem)
Anamalais (Coimbatore)
Sub Total
Non Traditional Areas
Andhra Pradesh & Orissa
North Eastern Region
Sub Total
Non Conventional Areas
Grand Total (India)

3,300
175
3,475
200
102,125

0
3,300
125
300
125
3,600
0
200
173,150
275,275
Source: Coffee Board of India

Table 7.2 Trend in Indias Domestic Coffee Consumption (1991 - 2000)

Calendar year
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000

Quantity (in MT)

55000
55000
50000
50000
50000
50000
50000
50000
55000
58000
Source: Coffee Board of India

Table 7.3 Demographic Profile of Tamil Nadu

:
Persons :

62,110,839

Persons : (+) 11.19 %

Males

31,268,654

Males

: (+) 10.49 %

Females :

30,842,185

Female

: (+) 11.91 %

Sex Ratio :

986

Persons :

6,817,669

Males

3,515,562

Persons :

10.98 %

Females :

3,302,107

Males

11.24 %

Females :

10.71 %

Sex Ratio :
! "#

939 (0 - 6 years)

Persons :

40,624,398

Males

22,847,735

Persons :

73.47 %

Females :

17,776,663

Males

82.33 %

Females :

64.55 %

(Source: Provisional Population Totals : India . Census of India 2001, Paper 1 of 2001)
Table 7.4 Tamil Nadu Rural and Urban Scenario
Population

Persons

Males

Females

% of Urban
Population to
the Total

34,869,286
17,508,985
17,360,301
Rural
27,241,553
13,759,669
13,481,884
Urban
62,110,839
31,268,654
30,842,185
43.86
Total
(Source: Provisional Population Totals : India . Census of India 2001, Paper 1 of 2001)

Table 7.5 Population and Growth Rate of Corporations in Tamil Nadu

Name of the
Municipal
Corporation

2001
Population

1991
Population

Growth
Rate

4,216,268

3,841,396

9.76

Coimbatore

923,085

816,321

13.08

3.

Madurai

922,913

940,989

-1.92

4.

Tiruchirappalli

746,062

645,134

15.64

5.

Salem

693,236

551,803

25.63

Tirunelveli

411,298

339,598

21.11

7,912,862

7,135,241

10.90

S.No
1.
2.

6.

Chennai

Total

Rank
1
2

6
--

(Source: Provisional Population Totals : India . Census of India 2001, Paper 1 of 2001)

Table 7.6 Population, Percentage Decadal Growth 1991-2001, Sex Ratio, Literacy by Sex in Tiruppur and Pollachi UA of
Coimbatore District, in 2001.
S.No

Size class and Name of

UA/City/Town

Civic status
of the City/
Town

iii) Tiruppur U.A

Population

Percentage
Decadal
Growth
1991-2001

Sex
Ratio

Persons

Male

Female

542,787

282,872

259,915

77.24

Literacy Rate
Person

Male

Female

919

82.68

89.50

75.20

1.

Tiruppur

346,551

180,629

165,922

47.05

919

84.26

90.65

77.24

2.

Velampalayam

TP

45,562

23,629

21,933

73.58

928

82.37

89.41

74.78

3.

S.Nallur

TP

30,319

16,013

14,306

--

893

83.85

89.96

76.95

4.

Thottipalayam

CT

24,969

13,209

11,760

--

890

77.06

86.03

66.86

5.

Avanashi

TP

22,274

11,255

11,019

28.95

979

80.11

88.09

71.96

6.

Veerapandi

CT

21,911

11,651

10,260

157.32

881

74.43

81.73

66.08

7.

Chettipalayam

CT

19,379

10,079

9,300

109.41

923

81.41

89.14

72.99

8.

A. Thirumuruganpoondi

TP

18,459

9,563

8,896

98.78

930

78.17

86.49

69.12

9.

Mangalam

CT

7,892

4,010

3,882

--

968

76.93

85.83

67.62

10.

Andipalayam

CT

5,471

2,834

2,637

--

930

74.22

83.53

64.15

127,993

64,417

63,576

6.87

987

84.75

90.40

79.06

Pollachi U.A.
1.

(a)Pollachi

88,293

44,329

43,964

1.61

992

86.25

91.21

81.27

2.

(b)Suleeswaranpatti

TP

17,638

8,903

8,735

24.53

981

82.62

90.39

74.82

3.

(c) Zamin Uthukuli

TP

14,871

7,486

7,385

17.08

987

76.00

84.57

67.44

4.

(d)Chinnampalayam

CT

7,191

3,699

3,492

19.81

944

89.06

92.16

85.75

(Source: Provisional Population Totals : India . Census of India 2001, Paper 1 of 2001)

ANNEXURE II

About the statistical software used

SPSS for Windows
Release 10.0.1 (27 Oct 1999)
Standard Version
Copyright SPSS Inc., 1989 1999.

To Obtain a K-Means Cluster Analysis in the SPSS 10.0.1 software

From the menus choose:
Analyze

Classify

K-Means Cluster...

Select the variables to be used in the cluster analysis.

Specify the number of clusters. The number of clusters must be at least two and
must not be greater than the number of cases in the data file.
Select either the Iterate and classify method or the Classify only method.
Optionally, you can select an identification variable to label cases.

Exhibit 7.1 Output of the K-Means Cluster Analysis

Quick Cluster

Output Created

19-JUL-2002 01:18:40

Comments
Input

Missing Value
Handling

Filter

D:\ragav\thesis\Ragav on rural\Thesis
Analysis\Source Master Table 9-7.sav
<none>

Weight

<none>

Data

Split File
<none>
N of Rows in
260
Working Data File
Definition of
User-defined missing values are treated as missing.
Missing
Cases Used

Statistics are based on cases with no missing values

for any clustering variable used.

Syntax

QUICK CLUSTER
attnotav attnopro attprice attnonew rnkpopul rnkprice rnkavail rnkpromo
spnoacti spnoneed spnoimag /MISSING=LISTWISE /CRITERIA=
CLUSTER(3) MXITER(10) CONVERGE(0)
/METHOD=KMEANS(NOUPDATE) /SAVE CLUSTER DISTANCE
/PRINT ID(res.no ) INITIAL ANOVA CLUSTER DISTAN.

Resources

Workspace
Required

1688 bytes

Elapsed Time

0:00:00.33

QCL_3

Cluster Number of Case

Variables
Created or
Modified

Initial Cluster Centers

Grouping Variables

Cluster
2

Do not switch in non availability

5.00

2.00

2.00

No Promotions

5.00

4.00

2.00

Increased Price

1.00

4.00

1.00

Do Not Try New Brands

5.00

3.00

2.00

Ranking Brand Popularity

1.00

2.00

2.00

Ranking Price

2.00

2.00

3.00

Ranking - Availability

2.00

3.00

2.00

Ranking - Promotions

1.00

1.00

3.00

Do Not Actively Participate in

Sales Promotions

1.00

5.00

2.00

Sales Promotions do Not

Necessary

5.00

5.00

2.00

Sales Promotions do Not Enhance

Brand Image

5.00

5.00

2.00

Iteration History
Change in Cluster Centers

Iteration
1
2
3
4
5
6

1
2.416
.217
.000
.000
.000
.000

2
2.542
.194
.112
.342
4.434E-02
.000

3
3.211
.167
.117
.274
3.064E-02
.000

a. Convergence achieved due to no or small distance change. The maximum distance

by which any center has changed is .000. The current iteration is 6. The minimum
distance between initial centers is 6.403.

Cluster Membership of the Cases

Case Respondent
Cluster Distance
No.
Number
1
1
2
2.366
2
2
3
1.884
3
3
3
2.467
4
4
2
1.740
5
5
3
1.969
6
6
3
2.668
7
7
3
3.009
8
8
3
1.748
9
9
3
2.105
10
10
3
2.701
11
11
3
2.003
12
12
2
2.302
13
13
2
2.637
14
14
2
3.263
15
15
3
2.580
16
16
2
2.267
17
17
3
3.056
18
18
3
2.753
19
19
3
2.841
20
20
2
2.028
21
21
3
2.849
22
22
3
1.171
23
23
3
3.066
24
24
3
3.148
25
25
2
3.508
26
26
3
2.105
27
27
3
2.701
28
28
2
1.729
29
29
2
3.263
30
30
2
2.267
31
31
2
2.707
32
32
2
1.955
33
33
3
2.718
34
34
1
2.540
35
35
3
2.415
36
36
3
3.390
37
37
2
2.302
38
38
3
2.192
39
39
3
2.698
40
40
2
2.731
41
41
3
1.946
42
42
3
3.049
43
43
3
3.009
44
44
3
1.748
45
45
3
2.105
46
46
3
2.701

47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94

47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94

3
2
3
3
3
2
2
3
3
2
2
2
2
2
2
3
3
2
2
2
1
2
2
3
2
1
2
2
1
1
3
2
2
2
3
3
3
3
2
3
3
3
2
1
1
3
3
3

2.571
1.626
2.849
1.171
2.739
2.140
3.508
2.105
2.701
1.729
3.263
2.267
2.302
2.144
2.190
1.629
1.656
2.127
1.230
1.746
1.844
2.177
1.829
2.701
2.076
1.443
3.208
2.506
1.858
2.434
2.443
1.798
2.395
2.147
2.542
1.939
2.878
3.425
3.071
2.461
2.452
2.614
1.875
1.858
2.434
2.443
2.105
2.105

95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143

95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143

2
3
3
2
3
2
3
2
3
3
3
2
3
3
2
3
3
2
2
3
2
3
3
2
3
2
3
3
3
3
2
3
3
2
2
2
2
2
2
3
3
1
3
3
2
2
3
2
3

2.395
2.415
3.095
2.302
2.571
1.626
2.449
2.405
1.969
1.748
1.480
2.247
2.668
3.009
2.913
2.701
2.003
2.302
3.263
2.580
2.267
3.056
2.753
1.740
2.967
2.739
2.849
1.171
3.066
3.148
3.508
2.105
2.701
1.729
3.263
2.267
2.707
2.915
1.955
2.718
3.530
2.540
2.415
3.390
2.302
2.016
1.736
2.702
3.136

144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192

144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192

3
3
3
3
3
3
2
3
2
3
2
2
2
2
3
2
2
3
3
3
2
2
2
1
2
2
3
2
1
2
1
3
2
2
2
2
1
3
3
3
3
3
3
3
3
2
1
1
3

1.748
2.105
2.701
2.849
1.171
2.739
3.508
2.105
3.263
2.701
1.729
2.267
2.302
2.144
2.571
1.626
2.140
2.617
1.864
2.136
2.127
1.308
1.746
2.571
2.177
1.829
2.684
2.028
1.443
3.329
2.434
2.443
1.743
2.046
2.358
2.484
2.312
2.542
1.761
2.665
3.093
2.828
2.857
2.452
2.614
1.875
1.858
2.434
2.836

193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236

193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236

3
3
2
3
3
2
3
2
3
2
3
2
3
3
2
2
2
3
3
2
2
2
3
3
3
2
3
3
3
3
3
3
3
3
3
3
2
2
3
2
3
2
2
2

2.105
2.105
2.395
2.112
3.095
2.302
2.421
1.785
1.615
2.667
2.676
2.395
2.924
2.701
1.729
2.734
2.267
2.452
2.967
3.103
1.495
2.833
2.105
2.415
3.390
2.302
1.927
2.464
2.833
2.295
2.349
2.701
2.701
1.171
2.739
2.105
3.508
1.855
2.701
1.729
2.571
2.277
2.775
2.395

237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260

237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260

2
2
3
3
3
3
3
2
3
3
2
2
2
1
2
2
1
1
1
3
2
1
2
2

1.626
2.484
1.927
2.464
1.919
2.682
1.643
2.450
2.542
1.629
2.127
1.230
1.746
1.844
2.177
1.829
1.632
2.530
2.720
2.701
2.352
1.443
3.208
2.316

Final Cluster Centers

1

Cluster
2

Do not switch in non

availability

4.47

3.07

2.87

No Promotions

4.42

3.80

3.45

Increased Price

1.84

2.90

2.40

Do Not Try New Brands

4.11

4.18

3.19

Ranking Brand Popularity

1.79

1.84

1.81

Ranking Price

2.68

2.72

2.93

Ranking - Availability

2.26

2.88

2.83

Ranking - Promotions

1.00

1.10

1.54

Do Not Actively Participate in

Sales Promotions

2.53

4.40

3.09

Sales Promotions do Not

Necessary

4.63

4.58

2.81

Sales Promotions do Not

Enhance Brand Image

4.58

4.08

2.91

Grouping Variables

Distances between Final Cluster Centers

Cluster

2.760

3.432

2.760

2.806

3.432

2.806

ANOVA
Grouping Variables

Cluster
Mean
Square

df

Error
Mean
Square

df

Sig.

Do not switch in non

availability

21.517

0.964

257

22.322

**

No Promotions

9.622

0.493

257

19.526

**

Increased Price

12.791

0.889

257

14.391

**

Do Not Try New Brands

30.759

0.795

257

38.680

**

Ranking Brand
Popularity

3.438E-02

0.443

257

0.078

0.925 NS

Ranking Price

1.457

0.136

257

10.714

**

Ranking - Availability

3.114

0.133

257

23.428

**

Ranking - Promotions

6.881

0.292

257

23.546

**

0.558

257

112.549

**

0.441

257

233.442

**

0.840

257

62.606

**

Do Not Actively
62.792
Participate in Sales
Promotions
Sales Promotions do Not
103.051
Necessary
Sales Promotions do Not
Enhance Brand Image
Table F Value (2,

52.569
) = 2.30

** - Significant at 5 per cent and 10 per cent levels

NS
- Not Significant

The F tests should be used only for descriptive purposes because the clusters have
been chosen to maximize the differences among cases in different clusters. The
observed significance levels are not corrected for this and thus cannot be interpreted as
Number
in eachthat
Cluster
tests ofof
theCases
hypothesis
the cluster means are equal.
Cluster
Valid
Missing

1
2
3

19.000
108.000
133.000
260.000
.000