77937560 Tetra Pack Research Report

Consumer Behavior Towards Tetra Pak Milk

Acknowledgement

First of all we would like to thank Allah, without whose guidance and help we could not have the courage and strength to complete this Research project. Everywhere we went, every information we collected, it was not possible without his agreeableness. We enjoyed working under the supervision and guidance of respected Ma’am Kinza Gul who at every step showed us the right path and the way to conduct our research. In short, she acted as our Invidulator in true case. Many times we consulted her in case of problems where whole-heartedly and frankly she guided at all times. It was also not possible without support and patience of our respondents who updated us with their quality comments/suggestions.

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Consumer Behavior Towards Tetra Pak Milk

TABLE OF CONTENTS: Pg # Research Process Diagram……………………………………………,..… 3 Summary.…………………...………………………….………………..…4 Observation…………………………………………… ………………..…6 Preliminary data gathering…………………………… …………….……7 Need/Problem identification….…………………………………….…….14 Theoretical Framework…………………………………………….……..15 Hypothesis…………………………………………………………...……19 The Research Process …………………………...……………….……….21 Data collection, analysis and interpretation…..……………….………….25 Research findings and recommendations..……………….……………….43 Questionnaire……………………………………………………………...45

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Consumer Behavior Towards Tetra Pak Milk

Research Process Flowchart

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Consumer Behavior Towards Tetra Pak Milk

Executive Summary In order to know the consumer’s behavior and attitude towards Tetra Packed Milk, we conducted a research study. We wanted to find out exactly why consumers buy Tetra Pak milk when they can buy loose milk at a cheaper cost. The research findings in this report will highlight and explain what Tetra Pak Milk is, though what process it goes through and how it proves to be worthy of. The main emphasis of our survey and research was to find out whether Tetra Pak milk is more hygienic, safe and convenient as compared to loose/fresh milk. The report ‘s main purpose is to come to a conclusion whether loose milk today is still preferred more by the consumers or have they shifted towards health safety and hygiene and started using Tetra Pak Milk. This report will explain the benefits of using Tetra Pak Milk, its essential qualities and why it should be the more preferred choice. It would also be presenting the current attitude of the consumer for loose milk. Our research comprised of a basic questionnaire survey from consumers of major localities in Karachi. Other sources of information were obtained from the internet. The sample size allotted was 50 persons but we successfully managed to collect questionnaires from 35 people which proved to be a very helpful source of our research. It is mainly through the questionnaires that we were able to collect the needed data to present our research findings and relevant comments. The results from the questionnaires may be summarized through the following few points: •

The overall results were in favor for both loose milk and Tetra Milk. They were not for only one case. This shows that consumers are willing to use both the types and not particularly favor only one.

•

The average age bracket of our respondents was 16-30 years

•

The majority of the respondents were females being 65.8% of the total sample population

•

More than 60% of the total 50 respondents used Tetra Pak while the remaining used either loose or powdered milk or both.

•

About 28% were using Tetra Pak milk for more than a year (3-8 years)

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Consumer Behavior Towards Tetra Pak Milk

•

62.2% said loose milk NOT hygienic

•

60.4% responded for Tetra Pak Milk being Expensive while only 20.4% said it is economical

•

75.8% of the respondents were satisfied with the quality of milk that Tetra Pak offers

•

The advertising of Tetra Pak milk geared 69.3% of the respondents to buy packed milk.

•

A ratio of around 35 : 40 was for and against loose milk being nutritious and healthy. There is not a large difference between the two but the majority said it is not nutritious.

A detailed analysis of the above and other findings is discussed further in the report which depicts the necessary information essential for our research project.

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Consumer Behavior Towards Tetra Pak Milk

I. Observation Almost everyday different news regarding milk quality and non-hygienic issues are examined by us from different sources. News in one of the local newspaper locally caught our attention, was annoying as well as noticeable which portray the current scenario of hygienic awareness of milk in our country. A frog jumped out of the jug when ‘gowala’ (milkman) was pouring one-litre milk. The buyer was shocked to see the frog and he protested against the presence of frog into the milk. Completely overlooking the complaint and protest of his customer, ‘gowala’ candidly remarked that only frog can jump out of one-liter milk and not elephant. These kinds of fears and health hazards relating to loose dairy items are steadily changing the mindset of the consumers. Seeing this change and an enormous unused potential of growth in packaged dairy products in the country in future, several local and multinational companies have introduced their branded dairy items in the recent past. Milk is one of the most complete and nutritious foods on the planet. It provides us with most important nutrients, and is particularly important as a source of vitamins. Milk today has become the need of almost every home and taking this fact into view every person now wants to consume the best of it. The first two factors which one usually keeps in mind before buying milk is it’s hygienity and purity. Milk now is available in many forms and shapes. The two main common forms of milk are:  Loose/Fresh Milk  Tetra Pak Milk •

Loose/Fresh MilkThis type of milk will be found with the local milk shop keepers who extract milk directly from their Bhains Baras and sell it in raw form without purifying it or processing it through purification machines. It is so known as loose or fresh milk as it is sold there and then and not preserved for longer periods of time. It is much cheaper than other forms of milk.

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Consumer Behavior Towards Tetra Pak Milk

• Tetra Pak Milk As the name suggests, this milk is Tetra Packed and sold in boxes at retail and convenience stores. Unlike loose milk it is more hygienic as passes through pasteurization (purification process), after which the milk is packed in strict hygienic conditions and made available for the consumer. The price is slightly higher than that of loose milk and has a shelf life of about 12 weeks. Tetra Pak nowadays is proving to be quite a popular form of packing for food as it effectively preserves its freshness and can be used on a greater span of time.

II. Preliminary Data Gathering To get a general overview of what Consumer prefer between Tetra pak milk and Loose Milk we visited places having milk shops and departmental stores both nearby to observe what people would buy. We interviewed generally some of the consumers why they prefer chosen kind of milk and their own assumptions on quality issues. We found a fair large number of people buying loose milk rather than tetra pak milk. It was also noted that tetra pak milk was preferred more by educated people. Consumers with more sound educational background were found to choose tetra pak milk. Generally speaking, we tried to find the reason for buying their preferred form of milk from mix educational background consumers. Loose milk candidates were of the opinion that it is fresh being brought from the dairy farm early in the morning. Tetra pak milk candidates stick on hygienic issues which according to them were the biggest factors as health is everything and Tetra Pak milk provides what they want. II.1 LITERATURE SURVEY: Of the different agriculture sectors, livestock is the largest, with a total value of Rs. 303 billion (US$5 billion). Its contribution to the agricultural value-added is 34 percent and to the total GDP is 8.3 percent. Milk is the largest commodity from the livestock sector accounting for 51 percent of the total value of the sector. Pakistan is the seventh largest producer of milk in

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Consumer Behavior Towards Tetra Pak Milk

the world with a total production of 21 billion liters of milk (Table 1) from a total herd size of 18 million buffaloes and cows. Comparative Milk Production Country U.S.A. India Russia Germany France

Production (billion liters) 70 70 32 29 25

Country Brazil Pakistan Ukraine U.K. Poland

Production (billion liters) 21 20 16 15 12

The majority of the milk in Pakistan is obtained from buffaloes but the share of cow’s milk in the total production is increasing gradually. The demand for milk in Pakistan is higher than its production. This necessitates the use of powdered milk, large amounts of which are imported every year. A certain portion of the shortage is fulfilled by adulteration of fresh milk with water and added solids, to compensate for the dilution. Such practices lead to health hazards for the consumers. Not only is the milk itself adulterated, but also its flow from the production site to the consumer’s house further deteriorates its quality. Most common method is the unprocessed raw milk vending door-to-door by milkman (gowalla). This kind of milk is hazardous to human health due to poor hygienic quality and adulteration. Another kind of processed milk sold ‘loose’ is the boiled milk heated in open flat pans for prolonged hours that result in the milk losing substantial nutritional value. (source internet www.parc.gov.pk/Respubs/livestock.doc )

What is Tetra Pak Milk? Tetra Pak milk goes through a pasteurization process which involves heating the milk to between 72 and 76 Celsius and keeping it on for 15 to 20 seconds. The aim is to kill off the entire population of disease-producing bacteria and greatly reduce the total number of bacteria. In this treatment milk is heated abruptly to 135-150 Celsius and kept there for just a few seconds before being rapidly cooled again to room temperature. The milk is then packed in special made cartons and boxes. The package must then maintain the quality of the milk and protect it from external influences such as oxygen, light and bacteria.

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Consumer Behavior Towards Tetra Pak Milk

UHT (Ultra High Treatment) treated milk must be packed aseptically in order to preserve its high microbiological quality. Even in room temperature the packaged product then has a shelf life of several months. In the aseptic packaging process the product is piped, after UHT treatment, to the packaging machine in a closed system. It is then packed under aseptic conditions, in sterilized packaging material made from paper, aluminum foil and polyethylene. The resultant packages are liquid-proof and exclude air, light and bacteria. The shelf life of packed pasteurized milk is limited and primarily depends on the storage temperature. http://www.tetrapak.com/Pages/default.aspx

Why Tetra Pak Milk? Milk contains a wide range of nutrients, essential for growing children – in particular, milk provides energy (calories) and is a good source of protein, calcium, zinc and vitamins A (whole milk only), B2 (riboflavin) and B12. Milk also makes a valuable contribution to intakes of iodine, niacin (a B vitamin) and vitamin B 6. Other minerals present in moderate amounts include selenium. Vitamins A and D are contained in the cream fraction. The nutrient content of milk compared with other drinks can be known through the following table:

Currently milk is sold either directly through milkmen or in tetra packs. The main problem with milkmen is that they mix substantial amount of water in the milk, which dilutes it, thus affecting purity and makes it unhygienic to use. Tetra pack milk, on the other hand, undergoes pasteurization and also contains additives and preservatives. Tetra Pak is considered to be more healthy and safe to use as it goes through a high treatment and pasteurization process which kills all the germs and bacteria.

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Consumer Behavior Towards Tetra Pak Milk

The Tetra packing on the other hand protects it from catching bacteria and preserves it for longer use. Taking into view the benefits of using Tetra Pak Milk, Pakistan is now moving a step forward to educate the people of the hazards of using loose raw milk, making Tetra Pak milk a healthier and better choice. The main reason being to eradicate the use of loose milk which is considered unhealthy ad unsafe to use. There is huge demand of both powdered & packed milk in the neighboring countries of Iran, UAE, Saudi Arabia beside, Malaysia, and Philippines which Pakistan can successfully harness to its advantage if due attention is paid to this sector. (source from internet NDC health)

The Structure of milk flow and distribution in Pakistan Pakistan is the seventh largest milk producer in the world with an estimated 21 billion liters of milk produced annually. Its massive herd of 45.7 million cows and buffaloes produced 26.3 billion litres of milk in 2006. 60% of which comes from Punjab. Milk in urban areas is accessible to common consumers in two ways: loose, unprocessed milk and packed, processed milk. Each has its own price regimen. Unprocessed milk passes through the middle persons before it reaches the urban retailer. The price of milk increases by one rupee per litre at every stage of sale. The ‘dodhees’ generally have undocumented contracts with farmers for regular milk supply. They pay farmers an average price of Rs. 12.74 per kg. Some ‘dodhees’ have milk storage and chilling system and transport system. Transportation generally costs Rs.0.50 to Rs.1.0 per liter. ‘Dodhees’ make one rupee per liter. The urban retailers deliver milk door to door, by motorbike or sell it in a shop to consumers. Consumers pay between Rs.12 to Rs.32 per litre depending on the fat content of the unprocessed milk. Dairy companies are also part of the marketing structure. Small local companies have milk supply contracts with ‘dodhees’. They have milk storage, chilling and pasteurisation facilities and have network of milk shops in the cities. Large dairy companies have supply contract with ‘dodhees’. Nestle for example has improved its supply system by setting ‘Village Milk Centres’ (VCMs) where they collect milk directly from farmers or from ‘dodhees’. Large dairy companies produce UHT milk in paper cartons.

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Consumer Behavior Towards Tetra Pak Milk

Companies like Nestle and CDL Ltd. In Pakistan are playing a crucial role in providing packed, pasteurized milk namely, Nestle MilkPak and CDL’s Haleeb Milk. The average price of Tetra Pak Milk is Rs.38 per litre.

The major milk processing plants in Pakistan can be illustrated through the following

table:

(Source:

www.smeda.org.pk “Pre-Feasibility Study - Milk Pasteurizing Unit”)

Tetra Pak Milk Vs. Loose/Raw Milk Raw milk is not recommended by health organizations. However, in homes or communities where raw milk is available, health authorities strongly advise home pasteurization. Milk should be heated to the verge of boiling, then cooled rapidly. The long term future for processed milk is good in Pakistan. The consumption of loose milk has been and still is a matter of routine in the life of a common man, but in the ultimate analysis processed and packed milk would be the answer to the increasing demands of the major urban centers. The compulsions of quality, the considerations of health issues and problems associated with the short shelf life of loose milk versus the inadequate distribution over large areas, would play a leading role in giving an edge to processed milk over loose milk. This has happened in other countries of Asia. There are many ways processed milk can

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Consumer Behavior Towards Tetra Pak Milk

be made available to the consumer. There is UHT milk, there is pasteurized milk and then there is powdered milk. All of these have their niche in the market. Now this combination of rapidly developing urban population, changing eating habits and need for convenience foods, in the backdrop of limited availability of processed foods, means that there is great need and opportunity to establish and develop many food categories in the years ahead. That is where we see an important role for Nestle Milkpak. "The clear benefits to the consumers of Tetra Pak milk are safety, convenience and consistent high quality. The benefits to our customers can differ depending on what type of market they are in. But safety, consistency, cost, distribution reach, differentiation possibilities, turnkey responsibility etc are what broadly appeal", says a Tetra Pak official. Consumers in general have not yet understood and accepted that processed milk is as good and wholesome as loose milk can be. But this is likely to change sooner or later. And this is one of the most important challenges for Tetra Pak companies at present in the years to come. In this environment, the traditional loose milk distribution is inefficient, harmful to the environment and does not provide the consumer with a safe and assured quality product. Look at the environmental mess created by the cattle colonies on the outskirts of some major cities. Look at the health hazards associated with the supply of loose milk, particularly where the distribution chain is inefficient and consequently time consuming.

Criticism against Tetra Pak Milk The un-pasteurized liquid milk, which is still being supplied in the traditional way, -- home delivered by milk-men either on bicycles or motorcycles is still being patronized even by the higher income strata and is only being supplemented by the powdered variety occasionally. Tetra packs are available at an average price of Rs.30 per liter, however it cannot be considered as pure, fresh milk for it has been pasteurized and treated for long life. Additionally, tetra pack milk has additives and preservatives, which reduces its nutritional value. Health conscious people and mothers for their children because of low fat content and better nutritional value prefer cow milk. The proposed price for the milk procured from cows will range between Rs.20 to Rs.22 per liter. The public has become health, quality and price conscious and would certainly buy fresh and pure milk. They would not mind paying Rs.5 to Rs.8 less per liter to get pure and fresh milk.

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Consumer Behavior Towards Tetra Pak Milk

Some of the consumers spoken to at some of the fresh milk outlets were critical of the pasteurized milk which they claimed could get spoiled easily and quickly once the package was opened, as compared to the fresh or 'open' milk which "can be relied upon" because the consumer boils it after buying. With intermittent increases in the prices of Tetra Pak, brand name-turned-generic,- milk in the market, consumers are now opting for the traditional liquid milk in loose form. With the rapid increase in the sellers of loose/unprocessed milk, it is becoming a constant threat for Tetra Milk due to its many factors compared to loose milk. Plus Tetra Pak is also loosing its value due to the conception that loose milk is more safe to use for it can be boiled and the bacteria can thus be killed. The home delivery of loose milk is another factor which leaves Tetra Pak milk behind. Moreover, even with the average increase of 5% every year, now pasteurized or cartoned milk is threatened by the cheap powdered variety being smuggled in from Eastern Europe on the one hand and the constant rise in its own retail prices.

Current Industry Structure Milk processing industry has shown a growing trend in the country during the last decade. Dairy plants have been established in various parts of the country. Majority of the milk processing plants have been installed around the major urban cities. Lahore is a location where most of the plants are located. Nestle milkpak and Haleeb are the big players, which are currently in different milk and milk products like tetra pack UHT milk, yogurt, milk powder and other products. Small pasteurization units, which include Halla, Prime, Nurpur dairies, Dairy King, Butt dairies are successfully running. Currently, pasteurized milk is being supplied in market at open milk centers with a daily volume of approximately 80,000 liters.

REFERENCES: www.pakistaneconomist.com Pakistan & Gulf Economist website www.smeda.org.pk “Pre-Feasibility Study - Milk Pasteurizing Unit” www.paksearch.com www.got-milk.com Other material searched through “Google” Search Engine

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Consumer Behavior Towards Tetra Pak Milk

.

III. NEED / PROBLEM IDENTIFICATION 

Attitude of consumer towards tetra pack ·



Perception about tetra pack as compare to daily milk ·



Perception of dairy milk as pure as it directly comes from dairies ·



Priority of hygiene factor among consumers ·



Taste of tetra pack as compare to dairy milk ·

Cream factor

INFORMATION NEEDS To determine customer’s preference for fresh milk against tetra pack. To determine the characteristic of product that influence customer preference. To determine the importance of attributes in the product for customer. To determine characteristics of current & potential customer (Health consciousness, portability etc)

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Consumer Behavior Towards Tetra Pak Milk

IV) Theoretical Framework

Easy Milk

availability and

Consumption of

Loose Milk

Freshness Independent variable

Intervening variable

Dependent variable

Inexpensiv e

Moderating variable

Milk

Portabilit y

Consumption of Tetra Pak Milk

Independent variable

Intervening variable

Dependent variable

Advertisin g

Moderating variable

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Consumer Behavior Towards Tetra Pak Milk

Schematic diagram for the theoretical framework

Demand of milk

Convenience Easy availability

Consumption of Tetra Pak Milk

Price Health awareness

Independent variable

Dependent variable

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Consumer Behavior Towards Tetra Pak Milk

Schematic diagram for the theoretical framework including intervening variable.

Demand of milk

Convenience Consumption of Tetra Pak Milk

Easy availability

Price Health awareness Advertisemen t

Independent variable

Intervening variable Dependent variable

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Consumer Behavior Towards Tetra Pak Milk

Schematic diagram for the theoretical framework including moderating variable.

Demand of milk

Convenience Consumption of Tetra Pak Milk

Easy Availability

Price

Brand awarenes s

Independent variable

Intervening variable Dependent variable

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Consumer Behavior Towards Tetra Pak Milk

V) HYPOTHESIS:

IF-THEN STATEMENT: If Tetra-Pak milk is available on cheaper prices then more people would use Tetra-Pak milk because of it good taste and hygiene factor.

NULL HYPOTHESIS STATEMENT: 50% people think fresh milk would be preferred if it’s processed hygienically.

ALTERNATE HYPOTHESIS STATEMENT: 50% people think Tetra-Pak milk would be preferred if it’s available at cheaper prices.

TESTING: According to our observations we would use the Z-test

PROCEEDURE: STEP 1:

Null hypothesis: P0.5

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Consumer Behavior Towards Tetra Pak Milk

STEP 2:

Confidence Interval = X = 1 - ∞ I.e. 1- 0.05 = 0.95 Correspondent z = 1.96

STEP 3:

Estimation Error Sx= (root) P (1-P)/n-1 0.5 * 0.5 / 80 – 1 = 0.25 / 79 = 0.056 Where P= probability n= sample

STEP 4:

For the Mean _ X=X*P = 0.95 * 0.50 = 0.475

STEP 5:

Final Calculations: P + Z * (Sx) = 0.50+ (1.96) * (0.056) = 0.60 STEP 6:

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Consumer Behavior Towards Tetra Pak Milk

Observed Value through bars from the research findings=0.813 (people who are using milk and believe that people will buy Tetra-Pak milk more if it’s prices are reduced)

RESULT: As the observed value is greater than 0.50 We’d reject the null hypothesis and accept the alternative hypothesis i.e. a greater percent of the people would prefer Tetra Pak milk if it’s available at cheaper prices.

VI) The Research Process 1) Purpose of the study: Hypotheses testing:

If Tetra-Pak milk is available on cheaper prices then more people would use Tetra-Pak milk because of it good taste and hygiene factor.

2) Correlational study: 1) Is demand of milk, convenience, hygiene awareness, easy availability, and price associated with consumption of Tetra Pak milk? 2) If so, which of these contributes most to the variance in the dependent variable? Or if more than one variable is involved then what difference is created by them?

3) If Tetra-Pak milk is available on cheaper prices then would more people use Tetra-Pak milk because of it good taste and hygiene factor?

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Consumer Behavior Towards Tetra Pak Milk

3) Extent of researcher interference: Minimal interference was experienced during the research.

4) Study settings: The research was conducted in the non contrived settings as we needed to sort results in the field study.

5) Unit of Analysis: Individuals We focused individuals as the unit of analysis since we wanted to figure out the consumption of Tetra Pak milk in the market keeping variables like demand of milk, convenience, hygiene awareness, easy availability and price as part of our research.

6) Time Horizon: We conducted Cross-sectional studies as a study was done to gather the date just once, perhaps over of period of 1 week on order to answer our research question.

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Consumer Behavior Towards Tetra Pak Milk

Research Methods and Instruments in Data collection: Research design comprised of contacting people through these resources. • •

Consumer Survey through questionnaire Retailer Interviews

 Consumer Survey through self- administered Questionnaire The sample size population for my research was 50 persons but I however managed to take questionnaires from 35 respondents. The information gathered from these 50 questionnaires provided us with very valid and valuable statistics showing the trends of consumer behavior movements and attitudes towards Tetra Pak and loose milk. Following areas of Karachi has been surveyed in this research: • • • • •

Gulshan-e-Iqbal Gulistan-e-Jauhar Nazimabad P.E.C.H.S Bahria University (Dalmia)

The localities of the respondents interpret the average spending patterns in different localities and were thus able to find out the difference of consumption patterns.

Target Consumers The majority of the respondent profile turned out to be as follows: • • • • •

16-50 years of age Male & Female working and non working Average household income Rs. 15,000 minimum Graduates Students and house wives

Most of the questionnaires were handed over to the respondents and they gave it back when filled. We also interviewed many respondents who did not wish to fill out the questionnaires themselves. Interviewing the people gave us a plus point

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Consumer Behavior Towards Tetra Pak Milk

over extra valuable information which could not be conveyed if the questionnaires were filled out in person. Not all the questionnaires were handed back but nearly all of the respondents did return. The questionnaires were returned back by hand and since the research could get expensive we did not involve questionnaire through mail.

 Retailer Interviews Following data have been gathered from the retailers:  The purchasers of Tetra Pak milk include house wives, children and servants. Obviously we cannot infer as to who the main decision maker is from this response we can say that the most of the people buying Tetra Pak come from good income households.  The most probable time of purchase from the store is mornings and nights. However, it also purchased in the odd timings of the day which shows that Tetra Pak milk is a convenience good and can be purchased as and when needed, as compared to loose milk which may go out of stock in the evenings.  Nestlé’s Milk Pak, Olpers milk and CDL’s Haleeb are the three most sold tetra Pak Milks sold at present. But on a comparison MilkPak has more sales than Haleeb and Olpers, mainly due to the greater presence of the brand in the consumer market since a long time.  With the advent of time many new brands names have shown up in the market. Mostly Nestlle and Haleeb are introducing new milk brands to attract more consumers. CDL has introduced a new brand namely “Milk Flow” which is available at Rs.2 less than the average price of the other brands. It has also launched a small juice pack namely “Meethi Lassi”

 The brands that are currently available in the market and their respective prices can be summarized as below: Brand Name Nestle Milk Pak

Pack Weight 1 Litre

Price Rs.60/=

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Consumer Behavior Towards Tetra Pak Milk

Haleeb Candia Olper’s Milk Flow

½ Litre 1 Litre ½ Litre 1 Litre ½ Litre 1 Litre ½ Lite 1 Litre ½ Litre

Rs30/= Rs.60/= Rs.30/= Rs.62/= Rs.32/= Rs.60/= Rs.30/= Rs.60/= Rs.30/=

The above tables clearly shows that almost all the brands are offering similar prices. In spite of offering lower prices the old brands are doing well due to the fact the longer the trust you have in the brand the longer you would stick to it. The average price of loose milk available is : 1 Litre- Rs.45/= ½ Litre- Rs.25/= You can see the difference between the two. Obviously loose milk is cheaper. From our research we find out why more than 60% said that Tetra Pak milk is expensive. The main reason for the price difference is that firstly Tetra Pak is purified/pasteurized and secondly it holds a brand name, the two qualities which loose/raw milk does not have. These qualities make Tetra Pak an expensive process. Plus the distribution network of packed milk is very large and much has to be spent to complete the distribution.

DATA TABULATION & MEASUREMENT TOOLS Once all the questionnaires were filled and collected, data was to be coded and results interpreted from the coding. Variables against the responses were first created and then specific codes were given against each question. For the multiple responses, the responses itself

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Consumer Behavior Towards Tetra Pak Milk

were named as the variables and points given to each response from each questionnaire. Our results tabulation were further presented in shape of  Bar Charts  Pie Charts These charts effectively presented the data in an understandable and simple way.

DETAILED FINDINGS AND ANALYSIS The following few pages will explain in detail the findings from our research. To start with, here is a summary of what all would be discussed to make the topic a valid and sound issue:  Age and gender of the majority of our respondents  Average household income (This would determine the social class)  For what purpose milk is likely used (For Tea, desserts, as fresh milk…..)  Milk Consumption on a daily basis  Average expenditures incurred on purchase milk  Type of milk used by the majority of our respondents (i.e. Tetra, Loose…)  The percent of consumers using Tetra Pak and those using loose milk  The most important factors that influence the consumer’s purchase of milk  Loose milk in comparison to Tetra Pak (Shown in terms of hygiene, price and satisfaction factors)  The effect of Advertising on the consumer’s purchase  The decision makers for the purchase of milk

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Consumer Behavior Towards Tetra Pak Milk

The data presented in the following graphs is accurate and authentic and clearly identifies the current behaviour of the consumer towards Tetra Pak milk in comparison to loose milk.

Male female

17 34

34% 65%

Interpretation The above graph shows that 65.8% from our 50 respondents were females and 34.2% males. So the results tabulated from other graphs would mean that the purchase of milk has a good contribution from the female members. We deliberately focused more on female respondents in our research because we assumed that they normally have a major influence on milk purchase.

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Consumer Behavior Towards Tetra Pak Milk

Age group 16-30

Age group above 30

31 61%

19 38%

Interpretation In this research proposal, the age brackets of respondents were 16-30 and 31-60 years(retailer’s point of view). I have found that around 62% of respondents fall in the younger age bracket, while around 38% of respondents belong to the higher age category.

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Consumer Behavior Towards Tetra Pak Milk

Interpretation Most of our respondents belong to middle and upper middle social class. More than 80% of respondents have income level between Rs. 8,000 to 50,000. Tetra Pak milk is perceived as an expensive dairy product, which is normally consumed by middle and upper social classes.

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Consumer Behavior Towards Tetra Pak Milk

Interpretation We observed that the consumption of milk in families is mostly once or twice a day. Others are very marginal.

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Consumer Behavior Towards Tetra Pak Milk

Interpretation General perception among people about loose milk is that it is un-hygienic as compared to Tetra Pak milk. Majority of the respondents have the view that it is not properly handled during and after extraction.

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Consumer Behavior Towards Tetra Pak Milk

Interpretation Media has played a key role in creating awareness among masses about safe production of Tetra Pak milk and consumers perceived Tetra Pak milk as conducive for health.

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Consumer Behavior Towards Tetra Pak Milk

Interpretation Tetra Pak companies able to convince their customers about the quality and safe processing of milk, and these are also reflected in our research. It is also observed that consumers of Tetra Pak milk are fully satisfied with the product and the most important factor in this regard is hygiene and quality which is not being provided by ordinary dairies.

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Consumer Behavior Towards Tetra Pak Milk

Interpretation Consumers have been focused by advertisements on media mostly through TV, and this has created awareness about Tetra Pak milk. Television plays an influential role in our society and Tetra Pak companies successfully used this medium.

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Consumer Behavior Towards Tetra Pak Milk

Interpretation Tetra Pak milk is perceived to be a product that has been over charged. Around 60 % of the respondents believe it to be an expensive product.

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Consumer Behavior Towards Tetra Pak Milk

Interpretation Tetra pack companies are able to convince their consumers that they are fully justified in charging high price because of the quality and hygiene factor maintain by the producer.

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Consumer Behavior Towards Tetra Pak Milk

Interpretation Most of the respondents believe that loose milk is a natural and pure product. While tetra pack users believe that loose milk is contaminated and diluted, which results deficiency of nutritional elements that should be present in the milk.

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Consumer Behavior Towards Tetra Pak Milk

Interpretation As milk is the product consume by the people who are health conscious that’s why tetra pack milk consumers rank hygiene on the top in their purchase decision. After hygiene, taste, easy availability and price are considered to be influential factors in purchase decision.

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Consumer Behavior Towards Tetra Pak Milk

InterpretationIt is observed that tetra pack consumers mostly moved to bakeries and general stores to purchase tetra pack.

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Consumer Behavior Towards Tetra Pak Milk

Interpretation Most of the people preferred to use tetra pack milk because of its high density and is generally presumed that it make more cups of tea as compare to loose milk.

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Consumer Behavior Towards Tetra Pak Milk

Interpretation Results clearly show that Television advertisement is the most successful medium in providing information about the product.

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Consumer Behavior Towards Tetra Pak Milk

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Consumer Behavior Towards Tetra Pak Milk

RESEARCH FINDINGS • • • • • • • • • • • • • • • •

Tetra Pack Milk is generally perceived as an expensive product among the consumers of milk. Tetra pack milk has positioned itself as a hygienic product against loose milk Many people believe that loose milk is un-hygienic and unsafe for health even then they do not use tetra pack milk as it is not affordable to them. Tetra pack milk is mostly consumed by the people of middle and upper middle social class. Respondents having children, preferred to use tetra pack milk, due to its better hygiene and taste. Most of the retailers do not store tetra pack milk product properly in a cool and dry place. It is a misconception that tetra pack milk has no or less cream and fat, although it has the same percentage as compare to loose milk. Taste of tetra pack milk is perceived as different from loose milk. Tetra pack milk is not easy to open, as claimed by the companies. TV advertisements played a vital role in educating consumers about the hazards of using loose milk and shifting to tetra pack milk. Children like the taste of tetra pack milk Due to the processing and pasteurization features of tetra pack, the companies have better positioned their product in terms of quality and hygiene. As it is thick, it is mostly used to prepare tea and desserts. Due to its instant use, it is preferred in conditions of urgent need in customer who actually use loose milk. It is also preferred because it needs not to be boiling. Fats remain homogenize even after quite a long time, in contrast to loose milk which separates cream and fats after repeated boiling.

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Consumer Behavior Towards Tetra Pak Milk

RECOMMENDATIONS AND CONCLUSION •

Many consumers believe it to be hygienic and easy to use but due to high prices, they cannot afford it. So it is highly recommended to decrease prices.

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It should have proper opening in order to stop wastage during milk spillage.

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It must have a proper handle to carry the pack easily.

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It must be available in more sizes.

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Different flavors must be introduced to make it more tasty among customers.

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Promotional schemes must be introduced to attract more market segments.

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Shelf life should be increased so that it can be preserved for long time.

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The taste of tetra pack milk must be made as near to natural flavor of milk as possible.

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Storage facilities at retailer end should be provided by the companies.

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The misconception of absence of cream should be effectively countered.

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Human intervention must be minimized during the whole process of production.

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Other social classes must be targeted by introducing new variants of tetra pack milk.

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