Consumers Preferences Towards Biscuits

A RESEARCH PROJECT ON

CONSUMERS’ PREFERENCES TOWARDS BISCUITS

SESSION: 2008-10

Submitted To:

Dr. R. Darshan MBA Faculty

Submitted By:

Kuldeep Sharma MBA-2nd Sem. Roll no: 2636

KEDARNATH AGGARWAL INSTITUTE OF MANAGEMENT Charkhi Dadri, distt. Bhiwani, Haryana. (Affiliated to: MDU. ROHTAK)

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ACKNOWLEDGEMENT

Success is not brought inherited. It is a product of what we put in. Success begins with a good feeling about where we are and a positive attitude about where we want to be. With this willingness, I have started this project. First of all, I would like to thank to the supreme power, the almighty god, who has always guided me to work on the right track of my life and has always blessed me with his blessing by giving me the best. Next to him are my parents, whom I am greatly indebted for having me brought up with love and encouragement. Next comes a person, without whose guidance and encouragement, this project report would not have been successful. So, I would like to express my gratitude towards MR. Anil Soni, MBA Faculty, KAIM, Ch. Dadri.

(KULDEEP SHARMA)

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PREFACE A determination to succeed is the only way to succeed. For this, it is very important that all knowledge, which we have, should be translated into action. It is only then that we can achieve something. Project work is the way to convert our raw talent into potential management. Classroom knowledge can only then be efficient when it is effectively wedded to the realities of the situation existing outside the classroom. In this project work place an important role. In this regard, I was given a project entitled “CONSUMER PREFERENCES TOWARDS BISCUITS”

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CONTENTS

1. Industry Profile 2. Introduction about the study 3. Objective of the study 4. Research Methodology 5. Limitations 6. Data Analysis 7. Conclusion 8. Suggestions and Recommendations 9. Findings 12. Annexure i)

Questionnaire

ii)

Bibliography

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INDUSTRY PROFILE 1. Biscuit industry in India in the organized sector produces around 60% of the total production, the balance 40% being contributed by the unorganized bakeries. The industry consists of two large scale manufacturers, around 50 medium scale brands and small scale units ranging up to 2500 units in the country, as at 2000-01. The unorganized sector is estimated to have approximately 30,000 small & tiny bakeries across the country. 2. The major Brands of biscuits are - Britannia, Parle Bake man, Priya Gold,Elite,Cremica, Dukes, Anupam, Horlicks, Craze, Nezone, besides various regional/State brands. 3. Biscuit industry which was till then reserved in the SSI Sector, was unreserved in 1997-98, in accordance with the Govt Policy, based on the recommendations of the Abid Hussain Committee. 4. The annual production of biscuit in the organized sector continues to be predominantly in the small and medium sale sector before and after dereservation.

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5. The annual Growth showed a decline of 3.5% in 2000-01, mainly due to 100% hike in Central Excise Duty (from 9% to 16%). Production in the year 2001-02 increased very marginally by 2.75% where in 2002-03 the growth is around 3%. 6. The Union Budget for 2003-04 granted 50% reduction in the rate of Excise Duty on Biscuit i.e. from 16% to 8%. The Federation's estimate for the current year indicates a growth of approximately 8% to 9%. 7. However the average utilization of installed capacity by biscuit manufacturers in the country has been a dismal 60% over the last decade up to 2001-02. 8. Though dereservation resulted in a few MNCs, i.e. Sara Lee, Kellogg’s Smith Kline Beecham, Heinz etc entering the biscuit industry in India, most of them, with the exception of Smith Kline Beecham (Horlicks Biscuits), have ceased production in the country. 9. On the other hand, import of biscuits, especially in the high price segment has started from 1998-99, but however, the quantum of imports has not so far increased alarmingly and has remained at around 3.75% of the consumption of biscuits in the country in the year 2001-02. However, recent imports from china industries cheaper verities of biscuit, needs to be examined with cautions, especially in the context of the price as the low margin based domestic industry, which is operating at 60 % of the total installed capital. Exports of biscuits from India have been to the extent of 5.5% of the total production. Export are expected to 6

grow only in the year 2003-04 and beyond

Biscuit is a hygienically packaged nutritious snack food available at very competitive prices, volumes and different tastes. According to the NCAER Study, biscuit is predominantly consumed by people from the lower strata of society, particularly children in both rural and urban areas with an average monthly income of Rs. 750.00. 10.

Biscuit can he broadly categorized into the following segments:

(Based on productions of 2000-01). . Glucose- 44% Marie -13% Cream -10% Crackers -13%

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BRITANNIA The story of one of India's favourite brands reads almost like a fairy tale. Once upon a time, in 1892 to be precise, a biscuit company was started in a nondescript house in Calcutta (now Kolkata) with an initial investment of Rs. 295.

The

company

we

all

know

as

Britannia

today.

The beginnings might have been humble-the dreams were anything but. By 1910, with the advent of electricity, Britannia mechanised its operations, and in 1921, it became the first company east of the Suez Canal to use imported gas ovens. Britannia's business was flourishing. But, more importantly, Britannia was acquiring a reputation for quality and value. As a result, during the tragic World War II, the Government reposed its trust in Britannia by contracting it to supply large quantities of "service biscuits" to the armed forces. As time moved on, the biscuit market continued to grow… and Britannia grew along with it. In 1975, the Britannia Biscuit Company took over the distribution of biscuits from Parry's who till now distributed Britannia biscuits in India. In the subsequent public issue of 1978, Indian shareholding crossed 60%, firmly establishing the Indianness of the firm. The following year, Britannia Biscuit Company was re-christened Britannia Industries Limited (BIL). Four years later in 1983, it crossed the Rs. 100 crores revenue mark. On the operations front, the company was making equally dynamic strides. In 8

1992, it celebrated its Platinum Jubilee. In 1997, the company unveiled its new corporate identity - "Eat Healthy, Think Better" - and made its first foray into the dairy products market. In 1999, the "Britannia Khao, World Cup Jao" promotion further fortified the affinity consumers had with 'Brand Britannia'. Britannia strode into the 21st Century as one of India's biggest brands and the pre-eminent food brand of the country. It was equally recognised for its innovative approach to products and marketing: the Lagaan Match was voted India's most successful promotional activity of the year 2001 while the delicious Britannia 50-50 Maska-Chaska became India's most successful product launch. In 2002, Britannia's New Business Division formed a joint venture with Fonterra, the world's second largest Dairy Company, and Britannia New Zealand Foods Pvt. Ltd. was born. In recognition of its vision and accelerating graph, Forbes Global rated Britannia 'One amongst the Top 200 Small Companies of the World', and The Economic Times pegged Britannia

India's

2nd

Most

Trusted

Brand.

Today, more than a century after those tentative first steps, Britannia's fairy tale is not only going strong but blazing new standards, and that miniscule initial investment has grown by leaps and bounds to crores of rupees in wealth for Britannia's shareholders. The company's offerings are spread across the spectrum with products ranging from the healthy and economical Tiger biscuits to the more lifestyle-oriented Milkman Cheese. Having succeeded in garnering the trust of almost one-third of India's one billion population and a strong management at the helm means Britannia will continue to dream big on 9

its path of innovation and quality. And millions of consumconsumers will savour the results, happily ever after.

PRIYAGOLD 10

The wondrous magical journey of our company Surya Food & Agro Ltd. began in Oct. 1993 & since then we have been one of the leading manufacturers of biscuits in northern India. Our brand “PRIYAGOLD” has been a perennial household favorite since then. On a profound level spread in to western as well as southern India, the inevitable cycle of distribution network has helped us to spread into western India as well. Our obsession is to make the finest quality biscuits available to the consumers & our constant endeavor is to provide our consumers, a palate to look forward to a taste & flavor that is uniquely “PRIYAGOLD”. We are operating in the new age, ruled by the dizzying pace of technology, poised to pace up with emerging trends thus improving quality standards every time. Our fully automated ovens bake the biscuits round the clock and then they find their way to the automatic packing units at the company’s plant in Surajpur, Greater Noida (U.P.), catering the ever growing demand of “PRIYAGOLD” biscuits. This is reflected through our brand’s positioning which says “Haq Se Mango”, a positioning that was formulated keeping in mind that everyone has the right to good taste and the right to ask for it. We feel that the means to finding the future lies in believing in ourselves. Our over the period created trust and confidence, can never be destroyed, just like the eternal force of nature. We adhere to ensure that “PRIYAGOLD” continue moving forward towards achieve best quality for total consumer’s satisfaction.

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PRIYAGOLD FORAYS INTO JUICES; SETS UP UNIT IN NOIDA DELHI NCR-based Surya Foods and Agro Ltd, manufacturers of Priyagold biscuits, has forayed into the juices segment. It has set up a state-of-the-art manufacturing facility in Greater Noida with an investment of Rs 25 crore. The plant has a capacity of producing 1.5 lakh liters of juice per day. Branded `Fresh gold', the one-litre juice in cartons is available in supermarkets and malls in and around Delhi for Rs 60. Speaking to Business Line, Mr. B.P. Agarwal, Chairman, Surya Foods and Agro Ltd, said, "Though the juices are currently available only in the northern markets, we plan to launch it in the south by the next month. We are also working on a specific distribution network for the same." The Rs 300-crore turnover company is also setting up a biscuit manufacturing plant in Uttaranchal to avail of the tax incentives. "We are investing around Rs 20 crore on the plant with a capacity of 100 tonnes per day, which would be operational by December 2006," Mr. Agarwal said. The company has been keeping a low profile with regard to advertising and promotions after its not-so-good experience with the `Priyagold khaao or khelo' contest. According to Mr. Agarwal, "The retailers did not give out the coupons to the end-consumers. Consequently, we had to withdraw the scheme from the market." However, he said that the company has earmarked around

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Rs 3 crore for promoting the juices. While tele-commercials have already begun on India TV, the company is hopeful of running them on all other channels by the next fortnight. It is also in the process of sprucing up its exports operations. Currently it exports its biscuits to countries such as Dubai and Nepal. According to Mr. Agarwal, "The high level of taxation in the domestic market, which is a major concern, is one of the reasons why we are looking to increase export volumes." Explaining further, he pointed out that high input costs and taxes are affecting margins and profits. As fierce competition from other players is preventing the company from increasing prices, he said, "High taxes are even forcing manufacturing units to close down. In fact, we have already had to shut down two out of six company's plants." While speaking on the company's performance, he said, "We face immense competition not just from competitors in organized retail but also from the unorganized market which holds almost 40 per cent of the market share and has the benefit of not being subject to any taxes." The government needs to look into the matter before the situation worsens, he added.

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PARLE-G Parle-G or Parle Glucose biscuits are one of the most popular confectionary biscuits in India. Parle-G is one of the oldest brand names in India and is considered the largest selling brand of biscuits in the world. For decades, it was instantly recognized by its iconic white and yellow wax paper wrapper with the baby face on it. Many competitors have tried to sell their lower quality products by copying the packaging, trying to sell their biscuits as Parel-G, Parle-Jee etc.

PARLE G'S MILK SHAKTI GOES NATIONAL

AFTER restricting its Milk Shakti variant to Tamil Nadu, Parle G has rolled it out nationally. It will be pitted against Britannia's brand of Milk Bikis. Mr. Praveen Kulkarni, Marketing Manager, and Parle Products, told Business Line: "We are planning to take on Milk Bikis in this category. After trying to get a share of the glucose segment in Tamil Nadu, we had decided to launch the variant." The southern markets continue to be the stronghold for the milk biscuit category, and Milk Bikis has been the dominant brand so far. Mr. Prabhakar Mundkur, President, Everest Integrated Communications Private Ltd - the agency handling the Parle G brand - said: "Sales for the milk-

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based biscuits come predominantly from the South where such brands continue to sell." Mr Kulkarni said, "We are planning to get aggressive and grow this market." Milk Shakti is pegged at Rs 5 for 100 gm. "We are no longer calling it a glucose-based product. Instead, it will be positioned as a biscuit with the goodness of milk and honey," he added. With this value-added positioning, Parle G is hoping to gain volumes for its franchise. In the past, the company had introduced a premium Magix variant in flavors such as elaichi, cashew nut and chocolate. Mr A. Sundarajan, Managing Director, Market Search (a market research firm working on the Parle G brand), said: "There has not been an alternative for Milk Bikis at a national level and Parle G is merely trying fill that gap." However, the company has no plans to take on the national atta market, especially since it would have to contend with the likes of HLL and ITC. Mr Kulkarni said, "There is still time for it (Parle G atta) to become a national brand. We are simply test marketing the product in certain markets."

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PARLE G LARGEST SELLING BISCUIT BRAND IN WORLD If you thought that a typical family run Indian company cannot top the worldwide charts, think again. The homegrown biscuit brand, Parle G, has proved the belief wrong by becoming the largest selling biscuit brand in the world. Ajay Chauhan, executive director of Parle Products, told Business Standard: "The more than 50-year-old brand, Parle G, has been rated as the largest selling glucose biscuit brand in the whole world in terms of volumes. This came as a surprise to us when we were made to understand that we have topped the worldwide charts of the global biscuits industry. This was recently revealed by the US based Bakery Manufacturers' Association." The other global biscuit brands include Oreo from Nabisco and McVities from UK-based United Biscuits among others. According to ORG-MARG reports, Parle G commands a good 65 per cent market share in the domestic biscuit market. The glucose biscuits category in India is estimated at Rs 15 billion. The Parle G brand faces competition from Britannia's Tiger brand of biscuits. The company's flagship brand, Parle G, contributes more than 50 per cent to the company's total turnover. The other biscuits in the Parle Products' basket includes Monaco, Krack Jack, Marie, Hide n Seek, Cheeslings, Jeffs, Sixer and Fun Centre. Said Chauhan: "The core brands of the company in the

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biscuit category will include only Parle G, Monaco and Krack Jack. The other brands will not be aggressively supported by us in the market." "This is because these three brands contribute substantially to our topline," Chauhan added. The confectionery business, which is the other division of Parle Products, currently contributes only 15 per cent to the company's total turnover. Interestingly, the company started operations with the confectionery business in 1929. Chauhan elucidated: "The confectionery business has now taken a backseat and has become a smaller part of our business because in India biscuits have a larger market." The company commands a 40 per cent marketshare in the Rs 35 billion biscuit market in India. In the confectionery segment, the company enjoys a mere 15 per cent marketshare. The company's confectionery portfolio comprises brands like Melody 2 in 1, MangoBite, Poppins, Rol-a-cola, Kismi, Rosemint, Peppermint, Orange candy, Fruit Drops, Pick n Pack and Tangy. Chauhan has picked up three core brands from this category as well, they being Melody 2 in 1, Poppins and MangoBite.

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CORPORATE SOCIAL RESPONSIBILITY Parle Products with its wide platter of offering of biscuits and sweets like Parle-G, Krackjack, Monaco, Melody, Mango bite and many others since 1929 is also actively engaged to change & uplift the social face of India. As a part of Corporate Social Responsibility Policy Parle is keenly involved in the overall development of younger generation with focused endeavor to built New Face of India and spread happiness & joy all over. Parle Centre of Excellence as an institution is dedicated to enrich the lives of people through conducting various cultural programs across all region to facilitate the all round development of the children. Every year, Parle organises Saraswati Vandana in the state of West Bengal during the festival of Saraswati Puja, inviting schools from all across the state to participate. The event is one of much fanfare and celebration, keeping alive the culture and traditions of ages. Our involvement in cultural activities has seen the inception of Golu Galata in Tamil Nadu, held during Navratri. Its gives a platform to all the members of a household to showcase their creativity and being judged by immanent personalities. Thousands of families participate and celebrate the occasion on a grand scale. These events give us a chance to interact with children on a one-to-one basis, and promote our belief of fun and health for the whole family. Parle – The world of Happiness.

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INTRODUCTION

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INTRODUCTION 'Consumerism' is the part of our daily life. Everyday, we buy and consume variety of goods and services that vary with our tastes and preferences. Moreover, each consumes is unique, and this uniqueness is reflected in their consumption behavior and pattern, and also purchases decisions. Studying the consumer behavior is thus, helpful in understanding the purchase decisions and performances of different consumers for a particular commodity or service. Conceptually, consumer behavior is "the study of individuals, groups or organization and the processes they use the dispose, for products, services, experiences or ideas to satisfy the needs and impact that these processes have on consumer and society" 'Biscuits' are commonly consumed by our society. It is not an essential part of diet but its use is continuously going on for small or little hunger or for taste or for status people use to eat biscuits. Previously when biscuit were not so popular for diet purpose, it was used as a diet for patients for kids for energy and taste, respectively. it is a good alternate of oily snacks or for fast food although it is not an substitute for daily meals. Now days, if we talk about our country, biscuits are consumed by a large part of our population. we have a trend to serving biscuits to our guest. It is only a status symbol but we can say that there is a trend of eating biscuits 20

in our country. This is a type of food easily available anywhere as well as in reasonable prices. Biscuits are generally used for taste and small hunger but the people should consume biscuits in optimum quality because its excessive use can harm body like any other sweet and it should use as a snacks or a energy provide in case of sick persons. Classification of biscuits: Biscuits may be classified broadly in the three categories:1. Glucose 2. Cream 3. Cookies Glucose: - It is a kind of biscuit which contains high percentage of glucose instead of anything else. As it contains glucose, it provides you instant energy and also gives you good taste. Generally it is consumed by kids but may be choice of anybody. Cream biscuits:- It is also a kind of biscuits which has floor backed floor as a base and between two plane biscuits there is a cream content of various flavors ex:- vanilla, strawberry etc. People use to eat these kinds of biscuits for the sake of taste not for the sake of energy. Cookies: - It is a kind of sweet biscuit which comes in many tastes, it is backed biscuits it is not containing creamy flavor, but it contains flavor like coconut chocolate etc in itself. 21

This study had to be performed in order 1. By keeping in view the importance of consumer behavior, the present study deal with the factors influencing the consumers purchase decisions for biscuits in Bhiwani city. 2. To demarcate between the individual or group preference, e.g. family’s influence on buying behavior. 3. To find that the people know the effects of over eating of biscuits and other side effects. 4. To find out why the person eat the biscuits for taste, hunger, pleasure, status, or for some other reason.

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OBJECTIVES

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OBJECTIVES OF THE STUDY The main objective of the survey is to know about the liking for the biscuits by different people like kids, adults & parents which include students, housewives, businessmen etc. Since the price war between various companies manufacturing biscuits has under gone a classic change, hence the various queries in this survey fulfill the under mentioned objectives. Objectives are:  Price Consideration  Advertisement Effect  Packing Effect 

After effects of Biscuits consumption

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FACTORS EFFECTING PURCHASING BEHAVIER OF CONSUMER'S TOWARDS BISCUITS There are many factors, which influence the liking of the Consumers. Some of the factors are: 1) Cultural Factors: Culture is the most important determinants of the

individual's needs, wants and liking, hence it frame the set of values, perception, preferences in the individuals which guides the consumer liking. 2) Psychological factors: Different psychological factors may be:

 Motivation: An individual has many needs at a given time. The needs may be activated due to physiological or psychological States. The biogenic needs such as hunger thirst and discomfort arise due to physiological

states.

Recognition,

esteem,

belonging and self-

actualization needs arise due to psychological reasons. A need becomes a motive when it is aroused to a sufficient level of intensity.

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A motive is a need that is sufficiently driving the person to satisfy that need by indulging in the activities that reduces the tension.

 Perception: A motivated person is ready to act, how actually he acts is influenced by his perception of the situation. Perception is defined as the process by which an individual selects, organizes and interprets information inputs to create upon physical stimuli and also on stimuli's relation to surrounding.  Learning: Learning describes the change in the liking of individuals as a result of experience. Most human liking is learned. Person’s learning is produced through the interplay of drives, stimuli, clues and reinforcement. 3) Demographic factors: a buyer's decisions are influenced by these personal characteristics.  Age group: People buy different goods and services over their life time consumption is also shaped by the stage of family life cycle.  Occupation: A person's occupation also influences his/her consumption pattern. An executive will buy the specialty/statue symbol products such as luxury suiting.

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 Economic Condition:

Products choice is greatly influenced by one's

economic conditions. People’s economic condition consists of spend able income, saving, borrowing power, attitude towards spending vs. savings.

 Personality and self-concepts: Each person has a distinct personality that wills influence his/her liking behavior. By personality we mean the person's distinguishing psychological characteristic that lead to relatively consistent and enduring responses to his/her environment. 4) Social factors: Consumer liking is influenced by the social factors are as following:  Reference Group: A person’s reference group consists of all those groups that have direct or indirect influence on person's attitudes and liking. The consumer strives to purchase those products that purchase by their reference group.  Family:

The family is the most important consuming unit, which

influence the family members liking. Marketers are interested in the roles and relative influence of the children, wife and husband in the purchase of large variety of products and services.

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 Roles and status: A person participates in the different groups thought life-family, clubs and organization. The person's position in each group can be defined I terms of roles and statues

RESEARCH METHODOLOGY

28

RESEARCH METHODOLOGY Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. For the purpose of the study it has adopted the following research methodology: Step I: Selecting a Research Design. There are three types of research design. a) Exploratory b) Descriptive c) Diagnostic d) Experimental Since the aim of the survey is to find out the “Liking for Biscuits among Various Consumers” which is unknown yet, therefore exploratory and descriptive research design has been chosen.

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Step II: Deciding the Source of Data. There are two types of data: a) Primary b) Secondary In this project primary as well as secondary data has been used. a) Primary Data: It is collected for meeting the specific objective of research study. The method used for collecting primary data is questionnaire. b) Secondary data: Any data, which is available prior to the commencement of a Research study, is known as secondary data. It refers to the information that has been collected by some one else, often this include printed or published up arts. The main source of secondary data for this project has been “business Today’s & Booklet of various companies of Biscuits”. Sample size: 50 Area: Bhiwani The people:

The people in this area are of mixed kind. Here we can find

Businessmen, Housewife’s, students and lawyers etc. people of rural areas also reside in this area. Urban background people also live here. So we can say that people with modern thinking & aware of surrounding have a taste for the consumption of Biscuits. The population of this area is very large over 4 laces. The people of rural area of villages have been involves in good jobs. Urban background

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people are professionals, businessmen etc. So, this is thus mixed society of people. SURVEY DESIGN: Local survey:The survey was conducted keeping in mind the following target groups. a) Persons of 0 - 10 years age groups. b) Persons of 10 - 20 years age groups. c) Persons of above 20 years age groups. A striking feature of the survey was that almost all the persons selected have liking for biscuits. People have liking for the different flavors of biscuits such glucose, Chocolate, Milk and Orange. Only the first preference of the flavor was consideration for the sake of inference. Questionnaire details:Questionnaire, which is formalized set of questions for obtaining information from respondents, was used as the primary research tool. The questionnaire for consumers covered following main topics:1. Importance factors in purchase of a particular type of biscuits. Factors like packing, taste, price. 2. Factors influencing consumers decision-making. 3. Degree of awareness among consumers about the side effect of high consumption of biscuits.

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4. Customers and ultimate consumers of biscuits

LIMITATIONS

32

LIMITATIONS Every survey has some sort of limitations and this survey also has some limitations: 1. Time constraints: limited time available was not enough to do the survey without error. 2. People have not exact & appropriate knowledge on the recall of brands. 3. There might be wrong information provided in the Questionnaire.

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DATA ANALYSIS

34

NUMBER OF MALE AND FEMALE RESPONDENTS:(In numbers) MALE FEMALE

27 23

Table-1

35

The total number of male and female respondent in the project is 50 where the male respondents are 27 & female respondents are 23.

YOU CHOOSE THE BISCUITS ON THE BASIS OF:(In numbers) Advertisement Suggested by friends Convinced by shopkeeper Price consideration Taste Other

12 15 8 6 6 3

Table-2

36

The factors effective the purchase decision of the people are advertisement 12, suggested by friends 15, convinced by shopkeeper 8, price consideration 6, taste 6, other 3.

WHICH KIND OF BISCUITS DO YOU PREFER MORE:(In numbers) Glucose Cream Cookies

18 20 12

Table-3 The most of the people in the society like the cream biscuits than the glucose and cookies. 37

WHICH FLAVOR OF BISCUITS YOU PREFER:(In numbers) Chocolate Vanilla Orange Elachi Glucose Other

9 7 9 2 18 5

TABLE-4

The flavors which are liked by the persons are chocolate 9, vanilla 7, orange 9, elaichi 2, glucose 18, other 5. 38

YOU WANT BISCUITS FOR THE SAKE OF:(In numbers) Energy

12

Hungry

13

Pleasure

9

Status

7

Taste

7

Other

2

Table-5

The persons eat the biscuits when they are hungry 13, for energy 12, For pleasure 9, for status 7, when some guests are in the house they serve them biscuits for taste 7, others are 2.

39

DOES THE PACKAGING OF THE BISCUITS INFLUENCE YOUR DECISION TO BUY:( In numbers) Highly Moderately Indifferent Insignificant Not at all

13 9 7 12 9

Table-6

The table showing that the packing of the biscuits influencing the buying decision is as follows highly 13, moderately 9, indifferent 7, insignificant 12, and at all is 9 in total of 50 respondents.

40

DO YOU EVER THINK OF AFTER EFFECTS OF EATING BISCUITS AS:(In numbers) Teeth decays Diabetes Fat Other disease

23 12 12 3

Table-7

What the people thinks the after effects of eating biscuits are as follows. Most of the people think that it leads to teeth decays 23, diabetes 12, fat 12, other disease 3.

41

DOES PRICE OF THE BISCUITS AFFECT YOUR PURCHASE DECISION:(In numbers) Important Indifferent Very important Insignificant Not at all

17 9 14 4 6

Table-8

The table shows that how much the customers are price sensitive. The price is the factor, which is important to 17, indifferent to 9, very important to 14 insignificant 4, and the price not make any effect at all is only to the 6.

WHO BUYS BISCUITS FOR YOU:(In numbers) 42

Self Children Parents Friends

16 12 13 9

Table-9

The buying done by the customers to the ultimate consumers occasionally or always are shown in the following numbers. The persons who purchasethem self are 16, the children are purchases for them are 12, the parent’s purchases for the family are 13, the friends purchases are 9.

DISCUSSION

43

Over the time, I learnt that people can look at the same thing quite differently. They can describe to other as they saw it. Opinions are thus formed. The perceptions often change our judgment. The study of this kind can be used by brand managers in the biscuit industry as a tool for comparative diagnostics and market preference stimulation under different price and promotion scenarios. The biscuits marketer can use segmentation strategy creatively to:-clearly identify the target groups. -Focus the promotional effects to maximize cost gains effectively. -create a strong positive image to offset competition. Biscuit company can identify and fluid their strength by a calibrated strategy to ensure that consumers see them in favorable light.

DISTRIBUTION

44

Distribution of prime importance is a massive horizontal distribution of the brand making it available with as many retailers as possible. The present scenario is very tough and the degree of completion is very high. The emerging retailers’ statement has thrown all the marketing techniques haywire and retailers also play a very important role in the actual sales of biscuits of any type. Since biscuits is not an essential part of diet and of number of great use, the chance of a consumer getting influence by a retailer are much higher in case of biscuits than in the case of essential food products.

PROMOTION The products are prompted through various mass media, influencing the consumers to buy the product of an appropriate moment. Given the fact that these are a number of alternatives available to the consumers, chances are that he will buy the brand that is most readily available, in spite of the media campaign. Certain promotional activities should be carried out for biscuits at the retail outlets. These activities are known as merchandising and below line promotion are planned to influence the consumers at the point of purchase.

ADVERTISING

45

It may be important for brand remembrance that it has a reinforcing and reminding role branded biscuits products have to compete with cheap local products, so adverting plays a very significant role. In other words, the role of advertisement is likely to be mostly informative and suggestive of application specifies, and its formative impact will be pronounced only to trial.

PRICE Consumer demonstrates heterogeneity in their price sensitivity to the biscuits . however a higher price is of great concern for the majority of consumers. There fore, we can say that biscuit consumers are highly price sensitive. The major part of the sample is highly price sensitive

TASTE AND PREFERENCES Decision of biscuit consumers is greatly affected by their taste, flavor, type, and packing and also with present trend in the market. The consumers who consume biscuits purpose to the patient are very few in the market. The biscuit industry should take care of these basic factors in order to identify the market also to precise the target market.

46

CONCLUSION

47

CONCLUSION

The results of the survey are very interesting. The findings of this survey on different age group consisting both male & female. Following results are drawn here; 1. As the age of the increase the buying of the biscuits by parent’s shifts by young age group according to their taste. 2. The people are very much affected by the advertisements, so they watch ads of biscuits very carefully. 3. Persons who are either a habitual or occasional user, the price rise effects the buying of biscuits.

SUGGESTIONS AND RECOMMENDATIONS 48

Some aspects of further study, as revealed by the present results, are as follows:1. Study the post purchase behavior of the buyers for biscuits 2. Study of branded biscuits as compare to non branded biscuits. 3. Retailers study to assess their relation towards the consumer queries and suggestions offered.

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ANNEXURE

QUESTIONNAIRE

50

1) NAME: -

_______________________________________________________

2) AGE GROUP:-Below-10__________________ 10-20 ____________________ 20-Above _______________ 3) SEX: -

MALE _______________

4) OCCUPATION: -

FEMALE ______________________

SERVICE_______________________

STUDENT ____________________________

BUSINESS______________________ HOUSE WIFE __________________________ OTHER ________________________

5) YOU CHOOSE THE BISCUITS ON THE BASIS OF a) ADVERTISEMENT ______________________________________ b) SUGGESTED BY THE FRIENDS ___________________________ c) CONVINCED BY SHOPKEEP ______________________________ d) PRICE CONSIDERSTION _________________________________ e) TASTE __________________________________________________ f) OTHERS ________________________________________________

6) WHICH KIND OF BISCUITS DO YOU PREFER MORE:a) GLUCOSE _____________________________________________ b) CREAME ______________________________________________ c) COOKIES______________________________________________

7) WHICH FLAVOR OF BISCUITS:a) CHOCOLATE ___________________________________________________ b) VANILLA ______________________________________________________

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c) ORANGE _______________________________________________________ d) GLOCOSE ______________________________________________________ e) OTHER _________________________________________________________

8) DO YOU WANT BISCUITS FOR THE SAKE OF:a) ENERGY ______________________________________________________ b) HUNGRY ______________________________________________________ c) PLEASURE ____________________________________________________ d) STATUS ______________________________________________________ e) TASTE _______________________________________________________ f) OTHER _______________________________________________________

9) DOES THE PACKING OF THE BISCUITS INFLUENCE YOUR DECISION TO BUY:a) HIGHLY________________________________________________________ b) MODERATELY__________________________________________________ c) INDIFERENT ____________________________________________________ d) NOT AT ALL ____________________________________________________

10) DO YOU EVER THINK OF AFTER EFFECTS OF EATING BISCUITS SUCH AS :a) TEETH DECAYS __________________________________________________ b) DIABETES ______________________________________________________

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c) FAT ____________________________________________________________ d) OTHER DISEASE ________________________________________________

11) DOES PRICE OF THE BISCUITS AFFECT YOUR PURCHASE DECISION:a) NOT AT ALL ______________________________________________________ b) INSIGNIFICANT ___________________________________________________ c) IMPORTANT ______________________________________________________ d) INDIFFERENT ____________________________________________________ e) VERY IMPORTANT _______________________________________________

12) WHO BUYS BISCUITS FOR YOU:(ALWAYS/ OCCASIONALLY) a) SELF ____________________________________________________________ b) CHILDREN _______________________________________________________ c) PARENTS ________________________________________________________ d) FRIENDS ________________________________________________________

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BIBLIOGRAPHY

1. Gupta, S.P, (2000) Statistical Method sultan, chand & sons publication, New Delhi. 2. Kotler, Philip, (2001) Marketing Management, prentice-hall of India New Delhi. 3. Kothari, C.R, (1999) Research Methodology, prentice-hall of India New Delhi.

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