STUDY ON CONSUMER PERCEPTION TOWARDS MTR INSTANT FOOD PRODUCTS A Dissertation submitted in partial fulfillment of the requirements for the award of M.B.A. Degree of Bangalore University
By EKTA .A. JAIN Registration No: 07XQCM6026 2007-09 MBA Fourth Semester M P Birla Institute of Management Bangalore
Under the guidance and supervision of: Dr K V Prabhakar Senior Professor M P Birla Institute of Management Bangalore-560001
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DECLARATION I hereby declare that this dissertation entitled “STUDY ON CONSUMER PERCEPTION TOWARDS MAGGI FOOD PRODUCTS IN THE AGE GROUP OF FIVE-TWENTY YEARS IN BANGALORE CITY” is the result of my own research work carried out under the guidance and supervision of Prof. Ashish J Shah, Senior Professor, M P Birla Institute of Management, Bangalore
I also declare that this dissertation has not been submitted earlier to any Institute/organization for the award of any degree or diploma.
Place: Bangalore
(Ekta .A. Jain)
Date:
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CERTIFICATE This is to certify that this dissertation entitled " STUDY ON CONSUMER PERCEPTION TOWARDS MTR INSTANT FOOD PRODUCTS “ is the result of research work carried out by Ms. Ekta .A. Jain under the guidance and supervision of Dr K V Prabhakar, Senior Professor, M.P. Birla Institute of Management, Bangalore.
Place: Bangalore
(Dr. Nagesh S Malavalli)
Date:
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CERTIFICATE I hereby state that this dissertation entitled “STUDY ON CONSUMER PERCEPTION TOWARDS MTR INSTANT FOOD PRODUCTS “Is an offshoot of the research work carried out by Ms. Ekta .A. Jain under my guidance and supervision.
Place: Bangalore
(Dr K V Prabhakar)
Date:
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ACKNOWLEDGEMENT I am happy to express my gratitude to Dr. N. S. Malavalli, (Principal, M. P. Birla Institute of Management) for many valuable ideas imparted to me by him for my research. I extend my sincere thanks to Dr. K. V. Prabhakar (Senior Professor) M.P.Birla Institute of Management, Bangalore for guiding me throughout this research work. I also owe a debt of gratitude to all the respondents who have generously provided me with the information need for my research investigation.
Place: Bangalore Date:
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CONTENTS Title
Page no.
Executive Summary
10
Chapter : 1 Introduction
12
1.1 Industry Profile – Food Industry in India
13
1.2 Company Profile – MTR
24
1.3 Product Profile – Instant Food Products
30
Chapter : 2 Review Of Literature
50
Chapter : 3 Research Design
60
3.1 Problem Statement
61
3.2 Research Objectives
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3.3 Research Methodology
62
3.4 Research Limitations
65
3.5 Sets Of Hypothesis
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Chapter : 4 Data Analysis And Inferences
67
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4.1 Hypothesis Testing
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4.2 Data Analysis And Inferences Of Customer
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Questionnaire 4.3 Data Analysis And Inferences Of Retailer Questionnaire
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Chapter : 5 Major Research Findings
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Chapter : 6 Recommendations
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Bibliography
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Annexure:
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Customer Questionnaire
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Retailer Questionnaire
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Explanation To The Research Instrument Used
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Directions For Further Research
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List of Tables, Graphs and Diagrams Customer Questionnaire Se. no.
Graphs and Tables
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1
Option Apart From Home Food
74
2
Nutrient & Hygiene Rank
75
3
Reasons To Purchase
76
4
Usage Of The Product
77
5
Frequency Of Usage
78
6
Comparative Taste
79
7
Promotion Of Product
80
8
Place Of Purchasing Of Product
81
9
Satisfaction With Packaging
82
10
Packaging Preference
83
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Retailer Questionnaire Se. no. Graphs and Tables
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Frequency Of Order Taken
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2
Availability Of Stock Compared To That Of
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Competitors 3
Satisfaction Level Regarding Trade Terms
86
4
Satisfaction Level Regarding Frequency & Method
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Of Delivery 5
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EXECUTIVE SUMMARY
MTR Foods Limited is amongst the top five processed food manufacturers in India. They manufacture, market and export a wide range of packaged foods to global markets that include USA, UK, Australia, New Zealand, Malaysia, Singapore, UAE and Oman. MTR's wide range of processed foods is synonymous with quality, taste and convenience. That's why a growing family of consumers across the globe has made MTR a part of their daily lives The research objectives are to find out consumer behavior towards ready to eat food products, to find out consumer response to pricing of product, to find out the distribution effectiveness of products and to find out the effectiveness of promotional activities. This research is a descriptive and analytical study where survey is used to collect data. The data is collected using a structured questionnaire. Two sets of questionnaire are prepared, one for the customers and the other for the retailer. Random sampling technique was used to select the sample for customers and stratified sampling technique was used to select sample for retailers. The sample size is 100 and 10 for customers and retailers respectively. The data collected is primary data. The data is analyzed using graphs and statistical techniques like testing of hypothesis for normal distribution and Chi-square test. The research limitation were -the research investigation is confined to 10 retail units in Bangalore city, limited sample size of 100 for customers due to time and resource constraints and the study focuses on only MTR retailers.
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The major research findings of this research are – ™ Indian consumers are still not completely ready for instant food products usage. The still prefer freshly cooked home food than processed and packaged food. ™ There are only few brands in this category which are available like MTR, ITC’s kitchens of India etc. MTR is the most preferred brand as it is a home brand of Bangalore and has a rich heritage. ™ MTR does not spend much on their promotional activities, very rarely you see their advertisements are aired but still it enjoys high brand awareness among the consumers. This is due to the good word of mouth publicity from a large number of satisfied customers. ™ MTR has a good networking and distribution system. The products are available from supermarkets to next to door kirana shops. They are supplied to the stores on a weekly basis to ensure the product freshness and quality.
Inspite of the positive finding there are some short comings in the products like the taste of the products is not upto the mark in case of North Indian dishes and soups. The food has taste of chemicals present in it. Due to the potential growth opportunities in the instant food segment, many big plays are entering. This may affect the monopolistic position of MTR. Hence MTR should work on their promotional strategies. They should add news markets globally and make MTR a global brand. More innovation needs to be brought nto the products and packaging needs to be made more attractive. MTR is a strong brand and is bound to become an global brand due to its relationship with large number of loyal customers all across the global.
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1.1 INDUSTRY PROFILE
The Indian food market, according to the 'India Food Report 2008' by Research and Markets is estimated at over US$ 182 billion, and accounts for about two thirds of the total Indian retail market. Further, according to consultancy firm McKinsey & Co., the retail food sector in India is likely to grow from around US$ 70 billion in 2008 to US$ 150 billion by 2025, accounting for a large chunk of the world food industry, which would grow to US$ 400 billion from US$ 175 billion by 2025. The growth of the food industry in India stems from the consistently increasing agricultural output. With the second largest arable and area in the world, India is one of the key food producing countries in the world, second only to China. In fact, the year 2008 has been a record year for India’s food grain sector with increased production, acreage under cultivation and record procurements. Further, according to an Economic Times analysis, one out of every five listed companies in India confirmed higher profits during the first half of fiscal 2008–09, with farm inputs and farm machinery companies achieving the biggest profits. According to Mr Subodh Kant Sahai, the Union Minister of State for MFPI, the food processing industry in India was seeing growth even as the world was facing economic recession. According to the minister, the industry is presently growing at 14 per cent against 6–7 per cent growth in 2003–04. Foreign direct investments (FDI) totaling US$ 143.80 million was put into the food processing industry in 2007–08 against US$ 5.70 million in the previous fiscal.
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Advantage India India is the largest producer of milk in the world, and is likely to become the
™
second largest dairy products producer in the coming years. ™
It is the second largest producer of fruits and vegetables.
™
It is home to the largest number of livestock in the world.
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It is the third largest producer food grains.
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It has the third largest output of fish.
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With above 9500 spices from medicinal and aromatic plants, India is truly a treasure trove of spices, accounting for 25-30 per cent of the world’s production. India is the largest producer consumer and exporter of spices, with major spices produced being black pepper, cardamom (small & large), ginger, garlic, turmeric, chilly etc.
Food Processing The food processing industry provides crucial connections between industry and agriculture. To aid the growth of the food processing industry, the government has implemented schemes including the setting up food parks, packaging centres, integrated cold chain facilities, value-added centres, and modern abattoirs. ‘Vision 2015’ undertaken by the Ministry of Food Processing Industries entails: ™
Three-fold growth in the size of the processed food sector.
™
Increasing level of processing of perishables from 6 per cent to 20 per cent.
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Value addition to be raised from 20 per cent to 35 per cent.
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Share in global food trade to go up from 1.5 per cent to 3 per cent.
Despite India having a huge agricultural production base, its share in exports of processed food in global trade is only 1.5 per cent; whereas the size of the global processed-food
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market is estimated at US$ 3.2 trillion and nearly 80 per cent of agricultural products in the developed countries get processed and packaged. Consequently, there is a tremendous potential for export-led growth and investment in this sector.
Snacks and Confectionery The Indian market holds enormous growth potential for snack food, which is estimated to be a market worth US$ 3 billion. The market is clearly and equally divided into the organized and unorganized sector. The organized sector of the snack food market is growing at 15-20 per cent a year while the growth rate of the US$ 1.56 billion unorganized sector is 7-8 per cent. BMI has predicted a 22 per cent growth in value terms in India's confectionery market till 2012.
Dairy and Probiotics According to Dairy India 2007 estimates, the current size of the Indian dairy sector is US$ 62.67 billion and has been growing at a rate of 5 per cent a year. Both production and consumption of milk and its derivatives are traditionally high in the country. The dairy exports in 2007–08 rose to US$ 210.5 million against US$ 113.57 million in the corresponding period, in the last fiscal, whereas the domestic dairy sector is slated to cross US$ 108 billion in revenues by 2011. Probiotic dairy products, which contain live organisms, build immunity and help in digestion, is an emerging category in the Indian food market. Along with domestic dairy majors like, Amul and Mother Dairy, global players like Nestle have made significant investments to capitalize the potential of the segment. The latest entrant is Yakult
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Danone with its investment worth US$ 28.3 million and an additional US$ 20.8 million on the cards for the next 2–3 years. According to the latest report on’ Indian Functional Foods and Beverage markets' by Frost & Sullivan, the market of nutraceuticals and probiotics earned revenues of over US$ 185 million in 2007 and is projected to touch an estimated US$ 1,161 million in 2012. Although the segment in its nascent stage currently, it is poised for an upswing. A healthy domestic economy and awareness of health products are expected to give a boost to the segment.
Beverages According to industry experts, the market for carbonated drinks in India is worth US$ 1.5 billion while the juice and juice-based drinks market accounts for US$ 0.25 billion. Growing at a rate of 25 per cent, the fruit-drinks category is one of the fastest growing in the beverages market. Sports and energy drinks, which currently have a low penetration in the Indian market, have sufficient potential to grow. They are considered a sociallyacceptable alternative to alcoholic beverages. Beverages major Coca-Cola India is readying an extensive roll-out of products for this year. It will roll off in February, 2009 a fortified low-priced powder drink Vitingo (an orange-flavoured beverage powder with micronutrients), followed by a phased launch of global energy drink Burn in the next quarter and its third lime-based drink, besides the existing Sprite and Limca brands either under Coca-Cola’s juice franchise brand Minute Maid or aerated drink Fanta also later in the year. According to industry officials, the market for packaged nimbu pani in India, almost entirely unorganized till now, promises higher growth potential than most packaged drinks. The market for alcoholic beverages has been growing consistently. 'The Future of Wine', a report on the state of the wine industry over 50 years, prepared by Berry Bros & Rudd,
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one of the oldest, independent wine merchants in Britain, suggests that the market for wine in India was growing at over 25 per cent per year. Approaching the milestone of one million cases a year, the Indian wine market has also recorded an impressive growth rate. An impressive 59.84 per cent growth of wine production (21.1 million liters in FY 2007-08 from 132 million liters in FY 2006-07) in Maharashtra bears testimony to the fact. Global wine majors have already set up shop in India to tap the vast potential. Out of the total consumption of grape wine in India, around 80 per cent wine consumption is from the major cities.
Marine Food India with its considerably long coastal lines enjoys a natural advantage in the marine food sector. According to the estimates by Marine Products Export Development Authority (MPEDA), Indian seafood exports rose to US$ 1.55 billion during 2007–08. Frozen shrimp accounted for 52 per cent of total marine exports at US$ 980 million followed by frozen fish at US$ 326 million.
Poultry and Processed Meat The country's poultry market is expected to grow at 12–15 per cent per annum. At the same time, fuelled by a booming retail sector, the market for processed meat is also growing at an estimated 1520 per cent per annum. Favourable conditions such as rising incomes and a young and urban population have fuelled increasing domestic demand. The rapidly growing sector offered investment opportunities for foreign players in activities such as breeding, animal health, feed, equipment, processing and retail distribution.
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Retail Landscape: Food Chains and Restaurants The food and grocery market in India is the sixth largest in the world. Food and grocery retail contributes to 70 per cent of the total retail sales. According to industry estimates, the segment is growing at a rate of 104 per cent and is expected to grow to US$ 482 billion by 2020. According to a BMI forecast, India is likely to see a huge 443 per cent increase in mass grocery retail (MGR) sales during the 2007–2012 period. The sector has recently attracted UK retail giant Tesco, which plans a partnership with the Tata Group. Ninety nine per cent of this segment is unorganized, and therefore, there is immense scope for growth for the organized sector. The organized food retail sector is largely dominated by restaurants, fast food outlets, coffee joints and the like. With the increasing competition in large cities, dining chains and restaurants like
™
Pizza Hut, Domino’s, Nirula’s and KFC are now bullish on setting up their stores in smaller cities and tier-II and III markets. ™
Global fast food chain, Domino's Pizza is present in 45 Indian cities with 207 outlets and is eyeing penetration into Tier-II and Tier-III cities with a plan to add another 300 outlets by the end of 2011. The chain holds 42 per cent share of the approximately US$ 113 million organized pizza market. Another fast food chain, McDonald's, has 160 franchised restaurants all over
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India. With an aim to clock 30–35 per cent growth per annum, it is looking to open 60 more outlets in the next three years. In the coffee retail segment, Cafe Coffee Day, the largest coffee bar chain in
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India, plans to grow from the present level of 590 cafes to 900 by the end of 2009.
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™ Popular Italian brand for ice creams, desserts and other food items, "Italicks", has entered the Indian market. The traditional Italian food items brand has launched its first outlet in Pune and will soon be present across India. ™ UK-based Wimpy International Ltd said it has clocked a 50 per cent increase in its sales within a month. ™ Dodsal Corporation operates 62 Pizza Hut and KFC outlets spread across 11 cities in India. ™ With out-of-home-consumption of coffee growing at 12–13 per cent, the Indian conglomerate, The Tata Group, is planning to step in to the business, by setting up a café chain across the country. ™ Hyderabad-based Heritage Foods India Private Limited (HFIPL) is planning to set up about 75 Fresh@Stores, its grocery retail chain, in Hyderabad, Chennai and Bangalore. The food retail market is going to receive a further boost with the proposed mega food parks. These, with complete backward and forward linkages with common processing facilities, are expected to create an integrated value chain from the farm gate to the consumer.
Major investments Private investment has been one of the key drivers for growth of the Indian food industry. The 'India Food Report 2008', reveals that the total amount of investments in the food processing sector in the pipeline for the next three years is about US$ 23 billion. ™ The government has received around 40 expressions of interest (EoI) for the setting up of 10 mega food parks (MFPs) with an investment of US$ 514.37 million. In August 2008, the first chocolate academy in India was opened by Swiss
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confectioner Barry Callebaut, making its fifth foray into the Asia market.
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South Korean confectionery giant, Lotte Group, also has plans to set up a
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subsidiary in India. Belgian brewing giant, InBev, has announced increased expansion in India, with a
™
focus on the beer market. Through its recent acquisition of US brewing giant Anheuser-Busch (A-B), the company now also owns A-B's Indian subsidiary, Crown Beers India. Consequently, A-B's popular Budweiser brand is likely to soon hit affluent Indian markets. Italian confectionery company, Ferrero SpA, has announced plans to invest US$
™
35 million for setting up a mint manufacturing plant in Maharashtra. Conglomerate Reliance Industries Ltd has invested US$ 1.25 billion in a dairy
™
project. In August 2008, Reliance Industries was reported to be mulling a partnership with UK-based supply chain solutions provider, Wincanton, for its efforts focussed on India’s mass grocery retail (MGR) sector. According to Business Monitor’s Q108 India Food & Drink Report, dairy major
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and ice cream specialist, Amul Dairy, has announced plans to enter India's US$ 500 million snack food market. Future Group and its private equity arm, Indivision India Partners, have
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acquired a controlling 50 per cent plus equity stake in the multi-cuisine lifestyle restaurants’ chain, Blue Foods. Blue Foods's flagship brands include Noodle Bar, Gelato Italiano, Spaghetti Kitchen, Copper Chimney, Bombay Blue, Cream Centre and a franchisee agreement with the California-based coffee chain, Coffee Beans & Tea Leaf. Texas Chicken, the chicken fast-food brand of the US-based Church's Chicken,
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has already opened its first outlet in Hyderabad and plans to open at least 300 outlets in India over the next 10 years. The world's third largest pizza chain, Papa John's, plans to open 100 outlets in
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different parts of the country with an investment of US$ 51 million. Fast-food chain McDonald’s is pumping in US$ 83.4 million on increasing its
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footprint in India.
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On the domestic front, RJ Corp-owned Devyani Food Industries has acquired 100
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per cent stake in ice-cream venture Cream Bell, valued at approximately US$ 92 million. ITC is planning to set up a world-class processing infrastructure in Rajasthan for
™
an integrated 'cleaning-cum-sorting' facility for spices like cumin, coriander and pepper. Moreover, ITC is also planning investments to automate the different operations in its supply chain. It is planning to set up a pepper garbling and steamwashing facility in Kerala, apart from a 'blended spices' facility over the next two years. Sapat International, a Mumbai-based tea company, is reportedly in talks with
™
EPIC, a private equity firm in the UK, for the acquisition of its stake in Whittard, an upmarket tea and coffee retailer in the UK. Cafe Coffee Day is planning an investment of US$ 24.68 million - US$ 30.86
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million for expanding its number of cafes to around 1,000 from the current 700, over 2009. France-based Belvedere Group, which is the world’s second-largest vodka
™
producer, is planning to enter India via the travel retail channel.
Government Initiatives The new trade policy places increased focus on agro-based industries. ™ Food processing industries have been put in the list of priority sectors for bank lending. Fruit and vegetable processing units have been completely exempted from
™
paying excise duty. Automatic approval for foreign equity upto 100 per cent is permitted for most of
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the processed food items.
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Items like fruits and vegetables products, condensed milk, ice cream, meat
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production, fist/poultry, pectins, pasta, and dairy machineries have been completely exempted from Central Excise Duty. Excise duty on ready to eat packaged foods and instant food mixes have been
™
brought down to 8 per cent from 16 per cent ; ™
Excise duty on aerated drinks has been reduced to 16 per cent from 24 per cent.
™
National bank for agriculture and rural development (NABARD) has set up a refinancing window with a corpus of US$ 204.92 million for agro processing infrastructure and market development.
Furthermore, Agriculture and Processed Food Products Export Development Authority (APEDA) has been making efforts to encourage export of agricultural and processed food products. APEDA has set up centres and other infrastructural facilities for perishable
™
cargo at various International Airports. ™
Set up and upgraded testing laboratories export of fruits & vegetables.
™
Set up Agri-export zones for fruits and vegetables.
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Participation and organization of international trade fairs and promotional campaigns.
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Provided financial assistance to its registered exporters.
Looking ahead A report by the US Department of Agriculture, citing a study by McKinsey & Company, suggests that the Indian food market is set to more than double by 2025. The market size for the food consumption category in India is expected to grow from US$ 155 billion in 2005 to US$ 344 billion in 2025 at a compound annual growth rate (CAGR) of 4.1 per cent.
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The government has undertaken major initiatives to give a push to the industry. It has decided to set up 30 greenfield mega food parks (MFP) during the Eleventh Plan, with each park receiving an investment of US$ 51.39 million. In the first phase, he said the MFPs would be established in ten states. Each project will be spread over about 50–100 acres, and will have around 30-35 food processing units. It is expected that each project would yield an annual turnover of about US$ 92.53 million-US$ 102.78 million and generate around 40,000 direct and indirect jobs. Work on 10 MFPs would commence in the current financial year. The MFP scheme has been set up to increase processing of perishables from the present 6 per cent to 20 per cent. Further, the scheme targets value addition of food items from 20 per cent to 35 per cent and increasing India’s share in global trade from 1.5 per cent to 3 per cent by the year 2015. Furthermore, according to the India Food and Drink Report Q3 2008 by research analysis firm Research and market, by 2012, India’s processed food output is likely to grow by 44.2 per cent to touch US$ 90.1 billion, while packaged food sales will increase by 67.5 per cent to reach US$ 21.7 billion. On a per capita basis, per capita packaged food spending is expected to grow by 56.5 per cent to US$ 18.06 by 2012.
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1.2 COMPANY PROFIL
HERITAGE OF MTR MTR has a rich heritage. Their tradition of food and hospitality began in 1924 with the establishment of the Mavalli Tiffin Room by the Maiyya family in Bangalore, India. This restaurant is a city landmark today and people still stand in queue to savour its unique, completely authentic dishes. Over the years, they have played proud host to many
distinguished
personalities
who
dropped by for the excellent coffee and the stimulating
conversation.
Culinary secrets have been protected and handed down over the generations and the food is based on truly authentic recipes from their region of origin. MTR’s journey to India’s premier, processed food company has been marked by innovation and the adoption of new technology. However, every MTR product will always embody the tradition of unmatched taste, purity and quality MTR Foods Limited is amongst the top five processed food manufacturers in India. They manufacture, market and export a wide range of packaged foods to global markets that include USA, UK, Australia, New Zealand, Malaysia, Singapore, UAE and Oman. Starting with the legendary MTR restaurant in Bangalore, India’s Silicon Valley, MTR now offer ''complete meal solutions. Their wide range of products include ready-to-eat M .P .B I RLA
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curries and rice, ready-to-cook gravies, frozen foods, ice cream, instant snack and dessert mixes, spices and a variety of accompaniments like pickles and papads. MTR’s deep understanding of culinary expectations and needs has resulted in many new and innovative products. Their investment in infrastructure and technology ensures that they scale rapidly and bring these to market. Today, consumers across the globe count on MTR to bring them all-natural, wholesome and delicious food that is also convenient and no-fuss. MTR has also expanded our retail presence significantly: contemporary 'Namma MTR' and MTR kiosks now serve delighted consumers across Bangalore and Chennai.
NAMMA MTR Namma MTR is a unique retail chain that allows customers to experience the wide MTR range. Namma MTR is split into three sections. One section showcases the entire range of products. The second section is a novel concept kitchen where customers can interact with specialist chefs to learn about MTR products and watch live demonstrations. This concept kitchen also works as an ideal platform for feedback, allowing them to understand and address consumer needs. The third section offers a variety of fast-food — you can either eat here or get a quick take-away from the express counter. True to MTR tradition, the food is pure, delicious and convenient. The menu offers anytime snacks, hearty meal combinations and ice-creams at truly, value-for-money prices. The smart, contemporary ambiance and
excellent
service make
for
completely international experience.
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a
FOOD SERVICES MTR also provides food services in food courts. They can be set up with minimum investment. . All you need to set up in the food court is a microwave oven, fryer and a freezer. MTR’s amazing
range
of
convenience
products, Frozen Foods and Ready to Eat dishes are made with cutting-edge technology from theDefense
Research Laboratory,
Mysore. This ensures the quality of the products.
INSTITUTIONAL SALES MTR is a one-stop, efficient and reliable supplier to reputed hotels, restaurants, institutions and caterers. The wide range of products supplied includes spices, masalas, instant mixes, vermicelli and accompaniments. Each of these products comes with the MTR assurance of purity and quality. Convenient delivery formats like instant mixes allow consumers to whip up a wide range of dishes in short amounts of time, regardless of how vast the scale of operation is.
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EXPORTS MTR exports their wide range of products to countries like US, Canada, UK, Germany, Middle East, Sri Lanka, Singapore, Japan, Australia and New Zealand.
QUALITY POLICY MTR is ISO 22000 and HACCP certified company. At MTR, quality is a way of life. Hazard Analysis and Critical Control Point or HACCP, developed by the Codex Alimentarius Commission, is a global food
safety
successfully
standard. MTR met
the
has
stringent
requirements for this certification. Their facilities are equipped with the latest
systems.
We
international standards
adhere
to
across
all
operations: from sourcing the finest ingredients to processing and packing using cutting-edge technology. Each MTR product carries this assurance of quality and meets the high expectations our consumers have from us.
FOOD SAFETY POLICY At MTR foods limited are committed to manufacture and market food products of high quality, hygienically processed using state-of-the- art technology with the following objectives.
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™ Creation of MTR brand synonymous with quality and food safety. ™ Continuous improvement by total committed participation of all. ™ Satisfy the changing needs of customers for total delight and meeting
the
regulatory and statutory requirement. ™ Increase the performance level of our suppliers. ™ Continually improve the effectiveness of quality and food safety
management
system
WHAT MAKES MTR A TRUSTED HOUSEHOLD NAME ™ Hundred percent Natural: MTR products are hundred percent natural have no preservatives and use only the finest, most authentic ingredients. ™ Unparalleled taste and flavor: Be it an Instant mix or a Ready to Eat dish, pickles or soups, all MTR products are known for their mouthwatering, "home-cooked" taste. ™ Uncompromising Quality: MTR adhere to the most stringent quality standards, from sourcing ingredients to processing and packing. We are ISO 22000 and HACCP certified. ™ Technology: MTR use the latest technology to preserve the quality and freshness of our food. Our use of technology from the Defense Food Research Laboratory for our Ready to Eat products has won us the President's award.
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™ Vegetarianism: All MTR products are hundred percent vegetarian
MILESTONES
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1.3 PRODUCT PROFILE
SOUPS MTR range of soups is heartwarming, healthy and 100% natural. Carefully picked ingredients are made into a soup concentrate. This is packed through a special process that ensures the soup retains its mouthwatering aroma and natural flavor. They are available in the following flavors:
i) Babycorn And Spring Onion - A creamy blend of exotic baby corn and fresh spring onions.
ii) Mixed vegetable soup - A healthy mix of vegetables in an Italian style soup
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iii) Mulligatawny Soup – A tangy, peppery, lentil-based soup
iv) Spicy Tomato Soup – A deliciously spicy, tomato soup
v) Simply Tomato –A rich tomato soup, the all-time favourite
vi) Spinach And Carrots – A healthy, wholesome combination of spinach and carrots
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READY TO EAT
MTR Ready to Eat dishes are an amazing combination of convenience, taste and variety. They're 100% natural and have absolutely no preservatives. Their range currently comprises twenty-two delicious and completely authentic Indian curries, gravies and rice.MTR has successfully adapted technology from the Defense Food Research Laboratory, Mysore to make sure each dish has that "just-cooked" freshness. The product profile of MTR is shown below:
i.
Avial - Mixed vegetables cooked in a hearty coconut sauce, a traditional delight from Kerala.
ii.
Kesari Bhath - Cream of wheat cooked with nuts and flavoured with saffron to make a divine dessert
iii.
iv.
Khara Bhath - Cream of wheat cooked with vegetables and aromatic Indian spices to make a delicious, light savoury.
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v.
Pongal - A delectable combination of lentils and rice, seasoned with peppercorns and other spices.
vi.
Bisibele Bhath - A wholesome combination of rice, lentils, vegetables and spices, a complete meal in itself.
vii.
Pineapple SS Curry- Juicy chunks of pineapple in a perfectly balanced sweet and sour curry.
iii.
ix.
Alu Mutar - Baby potatoes and green peas in a delectable curry.
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x.
Chana Masala - Wholesome chick peas cooked in a tangy, piquant sauce.
xi.
Dal Fry - Yellow lentils seasoned with aromatic spices, an integral part of every Indian meal.
xii.
Dal Makhani - Black lentils simmered with butter in true Mughlai tradition.
xiii.
xiv.
Navratan Kurma - Vegetables and dried fruit cooked in a rich, creamy gravy – a dish fit for kings!
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xv.
Paneer Butter Masala - Tender chunks of cottage cheese cooked in a rich butter sauce.
xvi.
Paneer Makhani - Tender chunks of cottage cheese cooked in a rich tomato gravy.
xvii.
Bhindi Masala - Ladies finger cooked with just the right blend of spices.
xviii.
Mix Veg. Curry - The goodness of vegetables in a delicious, satisfying curry.
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xix.
Palak Paneer - A delectable combination of tender chunks of cottage cheese and fresh green spinach.
xx.
Peas and Mushroom - Fresh green peas and button mushrooms in a delightful gravy.
xxi.
Rajma Masala - Red kidney beans in a hearty sauce, the all-time North Indian favourite.
xxii.
Veg. Pulao - A delicious, wholesome medley of rice, vegetables and spices.
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xxiii.
Gobi Manchurian - The goodness of gobi in a delicious, satisfying Chinese sauce.
xxiv.
Pav Bhaji - A rich combination of potatoes and vegetables cooked in the popular Mumbai style.
FROZEN FOOD MTR’s wide range of frozen foods offers stand alone dishes and delicious combos. Because they are processed and packed with cutting-edge technology, these convenient foods retain all their nutritive value and taste. They are broadly categorized into Main Dishes, Combo Meals, Snacks and Parathas. Dishes available under Main Dishes are:
i. Palak Paneer - A delectable combination of tender chunks of cottage cheese and fresh, green
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spinach.
ii. Channa Masala - Wholesome chick peas cooked in a tangy, piquant sauce.
iii. Alu Mutter - Baby potatoes and green peas in a delectable curry.
iv. Mix Veg. Curry - The goodness of vegetables in a delicious, satisfying curry.
v. Alu Bhaji - Baby potatoes and green peas in a delectable curry.
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vi. Tadka Dal - Yellow lentils seasoned with aromatic spices, an integral part of every Indian meal.
Dishes available under Combo Meals are:
i. Masala Dosa + Alu Curry - Crisp, golden dosa accompanied by potato curry. An all-time favourite snack.
ii. Rava Idli + Potato Sagu - Wholesome semolina idlis combined with a delicious potato dish. Perfect for a hearty breakfast or snack.
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iii. Punjabi Chole + Paratha - Whole-wheat parathas with delectably flavoured, chick pea gravy.
iv. Palak Paneer + Paratha - Tender chunks of cottage
cheese
in
a
mild
spinach
gravy
Accompanied by whole-wheat parathas.
v. Alu Bhaji + Paratha - Potatoes cooked with aromatic spices and accompanied by soft, fresh parathas.
Dishes available under Snacks are:
i. Samosa - Crisp, golden samosas stuffed with potatoes.
ii. Vada - Crisply fried golden rice rings.
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iii. Rice Idli - Light, fluffy steamed rice cakes.
Dishes available under Paratha are:
i. Ajowan Paratha - Delicious, golden-brown parathas delicately flavoured with 'ajowan' (a thyme like Indian spice).
ii. Alu Paratha - Delicious, whole wheat parathas stuffed with a hearty potato mix.
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iii. Lachha Paratha - Flaky, multi-layered golden-brown parathas made from whole wheat.
iv. Plain Paratha - Delicious, golden-brown parathas made from whole wheat. A great accompaniment to any meal.
v. Nawabi Paratha - Rich whole-wheat parathas flavoured with cashewnuts and saffron.
vi. Methi Mutter Paratha - Unusual and delicious parathas flavoured with fenugreek and stuffed with green peas.
RICE MEALS
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MTR Rice Meals are the perfect way to enjoy 'home' food anytime and anywhere. Not only are they affordable, they're also extremely easy to make. Just dip the pouch in boiling water or pop it in a microwave for a satisfying, wholesome and delicious experience. They are Available in a variety of exciting combinations as follows:
i. Diet Delite - Whole wheat and lentils cooked together with aromatics spices: low on fat, high on fiber and taste. Truly a dieter's delight.
ii. Jeera Rice - Rice subtly flavoured with delightful taste and aroma of cumin.
iii. Lemon Rice - A delectable, subtly flavoured mix of lemon and rice.
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iv. Masala Rice - Rice flavoured with a bouquet of aromatic spices and enriched with mix of vegetables v.
vi. Rajma Chawal - A hearty combination of red kidney beans and rice- the most popular dish in Punjab.
vii. Rasam Rice - Tongue-tickling pepper and tomato soup with rice. viii.
ix. Sambar Rice - Lentil and vegetable curry with rice, the alltime favourite
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x. Tamarind Rice - Rice combined with the tangy, mouthwatering flavour of tamarind. xi.
xii. Tomato Rice - A delicious, wholesome combination of rice and tangy tomato.
INSTANT SWEET MIX MTR Instant Sweet Mixes are a delightful and easy way to make the most mouthwatering delicacies at home. Whether it is a special occasion or just a regular meal, follow the simple step-by-step instructions on the pack and sweeten your family's day!
i. Gulab Jamun - Soft, sinfully delicious gulab jamuns. ii.
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iii. Badam Feast - Use this to make different Badam delicacies in minutes. It can be used to prepare Badam drink either a hot drink during winters or a cold drink during summers and Badam Halwa for special occasions.
iv. Vermicelli Payasam - The traditional payasam or kheer made easy.
INSTANT SNACKS MIXES MTR range of instant mixes is the result of years of culinary expertise. They are subjected to the most rigorous quality procedures to ensure that consumers get deliciously consistent results every time you use them. Just follow the simple step-by-step instructions on the pack — there's no simpler way to rustle up such a wide variety of delicious and wholesome Indian snacks.
i. Muruku - The popular, crunchy golden-brown snack. It’s easy to make and good to eat.
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ii. Rice Dosa - No grinding, no fuss. Crisp golden dosas are now so easy to make.
iii. Masala Upma - This wholesome savoury with creamof-wheat and vegetables is nutritious and delicious.
iv. Rava Dosa - Dosas made with cream of wheat: distinctive and delicious. v.
vi. Upma - With its combination of sooji and spices, delicious and wholesome upma is a universal favourite. Now make it in a few easy steps.
VERMICELLI
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MTR vermicelli is made with a special process that ensures it is nonsticky and does not form lumps. Choose from short cut, long cut or roasted vermicelli. You can use MTR vermicelli in so many marvelous ways! Make creamy sweet kheer, savoury Upma or toss it with boiled vegetables for a wholesome Pulao.
PAPADS MTR Papads use only the finest ingredients. They are packed using unique technology that ensures they stay crunchy, crispy fresh. They come in a variety of different flavours like Punjabi Masala, Plain and Masala. Enjoy them as a snack or as an accompaniment to any meal.
PICKLES MTR Pickles are made with traditional recipes handed down through generations of the company's founding family. Carefully selected fruits and vegetables are pickled with the finest oils and spices under the most hygenic
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conditions. Choose from a variety of different types and add zest to every meal.
ICE CREAMS MTR Ice Creams are known for their delicious creamy taste, innovative flavours and value-formoney prices. Available at kiosks, stores and Namma MTRs, they are a long-standing favourite with all age-groups.
SPICE POWDERS MTR spice powders are made under the most hygienic conditions in modern factories still use a traditional technique. They pound the finest whole spices slowly and patiently. Unlike the quicker and more common grinding, this ensures that the full-bodied flavour and aroma of the spice is retained.MTR manufactures Turmeric, Coriander, Black pepper, Chilly and Jeera powders.
BEVERAGES MTR manufactures some of the traditional drinks like Aamras, Badam drink, Chocolate Drink, Health Drink, Herbal Drink and Thandai.
MASALA POWDERS MTR’s wide range of Masala powders is made with traditional techniques to ensure they retain their purity, freshness and flavour. Use them to whip up a variety of completely authentic dishes with minimum fuss and time. At MTR they have stringent quality checks at every stage of sourcing and production to ensure only finest products reach the consumers. From individual families to hotels and institutions MTR Masala powders are trusted by consumers all over the globe.MTR produces the finest Masala powders like Instant Sambar Mix, Pulao etc.
LITERATURE REVIEW
CONSUMER ATTITUDE TOWARDS BUSINESS MAGAZINES It is heartening to note that despite the wide proportion of information communication technology and the electronic media as sources of information and knowledge, the print media continues to remain the preferred channel for specialized and detailed information on number of topics. In fact, a recent study brought out that many respondents were motivated to read a magazine after seeing an article on the Internet. Business magazines in India have a distinct role to play in informing readers about the latest trends in areas like the economy, stock market, marketing and corporate matters. The present paper
seeks to study the attitude of consumers towards these magazines. It has been found that readers are more influenced by credibility and authenticity of coverage than by promotional offers. The magazines more popular among English knowing readers since the leading business magazines are in that language. -- Manish Srivastava The ICFAI University Press.
THE HIDDEN PERSUADERS In The Hidden Persuaders, first Packard explores the use of consumer motivational research and other psychological techniques, including depth psychology and subliminal tactics, by advertisers to manipulate expectations and induce desire for products,
particularly in the American postwar era. It also explores the manipulative techniques of promoting politicians to the electorate. The book questions the morality of using these techniques. The Hidden Persuaders Vance Packard published in 1957.
MOOD STATES AND CONSUMER BEHAVIOR: A CRITICAL REVIEW
A conceptual framework is presented that depicts both the mediating role of mood states and their potential importance in consumer behavior. Reviewing findings from the psychological literature indicates that mood states have direct and indirect effects on behavior, evaluation, and recall. The scope and limitations of these effects are addressed, and the implications for consumer behavior in three areas-service en-counters, point-ofpurchase stimuli, and communications (context and content) - are examined. Finally, the potential feasibility and viability of mood-related approaches to marketing research and practice are discussed. The Journal of Consumer Research Vol. 12, No.3 (Dec 1985), pp281-300 Published by – The University of Chicago Press
CONSUMER ACCEPTANCE OF FOOD INNOVATIONS. An innovation's success is dependent upon successfully responding to consumer needs and communicating benefits in a believable persuasive manner. Consumers respond to good taste, convenience, and health enhancing properties. The magnitude of any risk the innovation or technology imposes including impact on the environment is also of concern. While people rely on mass media and advertisement their communication network is complex and the opinion of family and friends is a powerful influence. Public acceptance is influenced by perceived credibility of data, rigour of regulatory policy, impartial action of regulators, and demonstrated responsibility of industry. Editorial: By: Bruhn, Christine M. Publication: Innovation: Management, Policy, & Practice Date: Tuesday, July 1 2008
CONSUMER BEHAVIOUR AND MARKETING ACTION Consumer behavior is comparatively a new field of study which evolved just after the Second World War. The seller’s market has disappeared and buyers market has come up. This led to paradigm shift of the manufacturer’s attention from product to consumer and specially focused on the consumer behavior. The evaluation of marketing concept from mere selling concept to consumer oriented marketing has resulted in buyer behavior becoming an independent discipline. The growth of consumerism and consumer legislation emphasizes the importance that is given to the consumer. Consumer behavior is a study of how individuals make decision to spend their available resources (time, money and effort) or consumption related aspects (What they buy? When they buy? How They buy? etc.). The heterogeneity among people makes understanding consumer behaviour a challenging task to marketers. Hence marketers felt the need to obtain an in-depth knowledge of consumers buying behaviour. Finally this knowledge acted as an imperative tool in the hands of marketers to forecast the future buying behavior of customers and devise four marketing strategies in order to create long term customer relationship. Mr. Henry Babu Sr. Lecturer Bharthi Vidhyapeeth Inst. Of Management Studies & Research,
FOOD PROCESSING INDUSTRYIN INDIA Food is strategic to India’s economy, its GDP (of which agriculture constitutes one-third) and its 950 million people. The importance of the food processing industry can be gauged from the fact that it ranks fifth in size in the country and employs an estimated 16 lakh
workers – a fifth of the country’s industrial labour force – and accounts for 14 % of the total industrial output and 18 % of GDP. For the healthy development of this important economic activity, several key issues that influence the industry need to be addressed comprehensively; not the least important of which are the harmonization of food legislation and taxation of food. The value loss in food chain can be significantly reduced by processors going in for backward linkages. This will not only help enhance farm productivity, but also minimize wastage and reduce the non-value-adding role of intermediaries. Although India is the world’s third largest food producer, after China and US respectively, the combined turnover of its ten largest food companies is only $ 2 billion. Thus, in a country of one billion people, it seems that the size of the potential food market might have been overestimated. The truth is that the markets for the products on
which India’s food companies have concentrated – higher value-added items such as breakfast cereals, jams, and sauces – are indeed small because these products are aimed at an elite. The big, and so far largely untapped, opportunity lies with the mass-market products – packaged atta, biscuits, poultry, and liquid mild – which could eventually account for more than 80 % of the total market. The growth in consumption for valueadded foods will treble from $ 21.4 billion today to $ 62.5 billion. VINIL PATEL Research project Narsee Monjee Institute of Management Studies, Mumbai.
CONSUMER BEHAVIOR- PERCEPTION AND INFORMATION PROCESSING Perception is the process through which a person forms an opinion about the various stimuli he receives from his sensory organs. In marketing, perception is concerned with understanding how the consumer views a product or service. The five senses of a person help him in this process. The marketer uses various props to stimulate the consumer, that is, through the use of colors, sound, touch, taste, or smell, to observe the product.
The marketer must distinguish his message from the competitor’s message. This is when Just Noticeable difference (JND) comes to their aid. JND is the minimum difference that the consumer can detect between two stimuli he receives. It helps the consumer to distinguish changes in prices among purchase alternatives. Marketers thus use stimuli to grab customers’ attention and most often these efforts are clearly visible and known to the customer however, they sometimes use indiscernible stimuli that are just below a
consumer’s threshold so as to influence him. This is called subliminal message. Of all the stimuli a consumer comes into contact with, he pays attention to only a few and interprets the messages that he remembers. This is called the process of perception and has the three steps: 1) exposure, 2) attention, and 3) interpretation.
How well the consumer pays attention will depend on the stimulus, and also the consumer’s interest and need for that product. The consumer interprets the information in two ways: 1) the literal meaning or the semantic meaning and 2) the psychological meaning. Hence we are guided by our learning as well as the semantic meaning of a word. A consumer also interprets the symbols and other physical features of the product on the basis of his experience and cultural beliefs. This is called semiotics. Consumer Behavior Textbook
Chapter no.5, pg no. 15 Published by: ICMR
FOOD SAFETY RISK: CONSUMER PERCEPTION AND PURCHASE BEHAVIOUR Food safety has become a major issue of public concern, encouraging the UK Government and the food industry to take steps to rebuild consumer confidence. In this context, the paper draws on a review of research literature to develop a conceptual framework to identify and review the factors influencing consumer perception of food safety related risks and the likely impact on purchasing behaviour. The relevance of strategies adopted by consumers to reduce risk exposure and the influence on the
likelihood of food purchase are also explored, together with the implication for the food industry. Ruth M.W. Yeung, Joe Morris British food journal Vol:103, pg 170-187
COMSUMER AS THE KING ! A key trend in the children’s product category, especially consumables, was an effort to have dual layers of positioning and brand messages. One layer, the fun and palate for the children who were key consumers and the second key layer that catered to the mothers’ M .P .B I RLA
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needs and fears regarding child nourishment. We saw multiple product categories cater to this trend. From health beverages which strengthened their already existing balance between nourishment and taste, to biscuits and other instant snacks being new entrants to this balancing game. The author is director, Synovate India The Financial Express Dec 29, 2008.
GARMENTS, EATABLES… ALL IN AN INSTANT There might come a time in future when people may forget the art of cooking and connoisseurs will have to revive the art.
“With all readymade mixes and eatables available in market, why waste time on making such things. Many of us are professionals and we do not have time to try and learn to make,” says S. Geetha, an advocate. Not just sweets and savouries but even idli batter is one item that is very much needed during the festival time. A. Krishna, who has been running an idli dosa batter for the past five years, says he will be grinding 50 litres of batter extra this year. They don’t have time to soak and grind to make the batter so we provide it to them. Ramesh Narayanan, vice-president (State head) of Reliance Fresh, says that people prefer to spend quality time with the family on a holiday rather than using that time to cook. “A lot of readymade mixes including vada mixes, payasam mixes are available. In fact, there is even instant sambar from a few brands. However, people want to make the stuff at home so we are just providing them the raw materials so they can make it quickly.”
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Deepa H Ramakrishnan The Hindu Oct 27, 2008
Consumer Perception About Fast Food in India: An Empirical Study Fast food is one of the world's fastest growing food types. It now accounts for roughly half of all restaurant revenues in the developed countries, where it continues to expand. However, some of the most rapid growth is occurring in the developing world, where it is radically changing the way people eat. People buy fast food because it is cheap, easy to prepare, and heavily promoted. This empirical study focuses on the understanding of the consumer perception about fast food outlets and the importance of various factors like
variety of food, taste and quality, ambience and hygiene, service speed, price, location and parking space, which affect the choice of fast food outlets in young consumers Prakash Tiwari and Hemraj Verma Published: Dec, 2008 The Icfai University Journal of Consumer Behavior
Consumer Behaviour Consumer Behavior is everything and everything is consumer behavior" is the motto of this book. Today, studying and understanding consumer behavior is prerequisite for the success of firms in the marketplace and individuals in the workplace. It provides insights M .P .B I RLA
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into product, pricing, retail, advertising, and communication strategies. Accordingly , the text focuses on how and why consumers make specific decisions and behave in certain ways- what motivates them, what captures their attention, and what retains their loyalty?. Apart from answering such questions, the book gives the characteristics of individual and group that influence consumer's decisions and behaviors, such as demographics, lifestyles, personality, values, culture, and family. Blackwell R D Consumer Behaviour 9th Edition
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3.1 PROBLEM STATEMENT
Has the ready to eat segment welcomed well in India? Price, freshness and taste are issues to contend with.
3.2 OBJECTIVES OF THE STUDY
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™ To Find out Consumer behavior towards ready to eat food Products
™ To Find out consumer response to Pricing of product
™ To Find out the Distribution effectiveness of products
™ To Find out the effectiveness of Promotional activities
3.3 RESEARCH METHODOLODY
Research Methodology is an organized and systematic way of finding answers to questions. This is a descriptive research project entitled as “A study on consumer perception towards MTR instant food products”. It is a descriptive research project because the study is a fact finding investigation with adequate interpretation. It focuses on one dimension of the problem studied i.e. consumer perception towards MTR instant food products. Data is collected by using two sets of questionnaire one for the customer’s and the second for retailers. The study is also analytical as it aims at testing hypothesis and specifying and interpreting relationships.
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The method of study used is surveys. Survey is a fact finding study. It is a method of research involving collection of data directly from a population or a sample thereof at a particular time. Well selected sampling can reflect fairly and accurately the characteristics of the population. The chief aim of sampling is to make an inference about an unknown parameter from a measurable sample statistic. The second aim of sampling is to test a statistical hypothesis relating to population. A good sample should be representative, accurate, precise and of adequate size. Some of the advantages of sampling are that it reduces time and cost of research, the quality of the study is often better with sampling when compared to a complete coverage and it provides quicker results. But all of the above mention advantages can be yield only if the researcher has a thorough knowledge of sampling methods. There are various sampling techniques available like area sampling, clustered sampling etc. The criteria for selecting sampling techniques are - purpose of the survey, measurability, degree of precision, information about the population and time limitation. Considering these criteria Probability or Random sampling is chosen. The technique of sampling used for Customers is Simple Random Sampling. This sampling technique gives each member of the sample an equal and independent chance of being selected. This technique is suitable as the population size is small and homogeneous. The technique of sampling used for Retailers is Stratified Random Sampling. In this method, the population is sub-divided into homogeneous groups or strata and from each stratum random sample is drawn. This technique is suitable as the population size is large and heterogeneous. The difficulties faced in sample size decision are precision required, the way the results are to be analyzed and number of variables to be studied. Thus basic concepts relevant to sample size like sample value and population parameter, mean of sampling distribution, M .P .B I RLA
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standard distribution etc. need to be kept in mind while determining sample size. Thus a sample size of 100 is taken in case of customers and a sample size of 10 is taken in case of retailers. The search for answers to research question is called collection of data. The source of collecting data here is from Primary source as the project has been taken over for the first time & the information gathered are fresh .The approach applied for conducting research or project work & collecting data is ‘survey research’. It stands for undertaking surveys & gathering information regarding the research. The research has involved questionnaire, as its research instrument .It is the most common tool for collecting primary data. It basically consists of carefully developed, tested, sequenced & objective oriented set of question and is resented to respondents.
In it there can be different types of question as per the research but it should be always be easier to interpret and tabulate. In order to conduct survey a sequenced and structured questionnaire was prepared consisting of all relevant questions essential for gathering the required data .The questionnaire was then distributed to the respondents of universe falling in the sampling unit. After a bit of delays and convincing conversations with respondents the questionnaire was filled and collected. After the collection of filled questionnaires it were set to make analysis and draw inferences so as to have some feasible options for the company .The analysis and interpretation can be seen in the following pages. It also shows different parameters of variability & consistency in the data collected.
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SAMPLE DESIGN: Title
Description
Type Of Research
Descriptive and Analytical study
Method of Study
Survey
Universe
Bangalore
Sampling Unit
Customers and Retailers
Sampling Technique
1) Simple random sampling for customers
Sample Size
1) 100 for customers
2) Stratified sampling for retailers
2) 10 for retailers Source Of Data
Primary data (questionnaire and observation) Secondary data (through journals, Internet etc.)
Method Of Data Collection
Questionnaire and Observation
Data analysis and inference
The data generated is subjected to simple statistical treatment and inferences have been drawn accordingly.
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™ The research investigation is confined to 10 retail units in Bangalore City ™ Limited sample size due to time and resource constraints
™ The study focuses on only MTR retailers
3.5 SETS OF HYPOTHESIS Set: 1 HA: Usage of MTR food products is not regular. Set: 2 HA: Advertisement has more impact than word of mouth. Set: 3 HA: 50% of the population considers pricing of MTR instant food products to be high but affordable.
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Set: 4 HA: Brand MTR is a powerful brand when compared to its competitive brands.
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4.1 TESTING OF HYPOTHESIS TESTING OF HYPOTHESIS OF QUESTION 6 FROM CONSUMER SURVEY QUESTIONNAIRE Step 1: Null Hypothesis (H0): Usage of MTR products is regular Alternate Hypothesis (HA): Usage of MTR food products is not regular. The test is one tailed since the alternate hypothesis is in terms of most preferred. Step 2: The level of significance selected for the test is 5% since some of the respondents may give incorrect information. M .P .B I RLA
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Step 3: Chi-Square distribution is selected for the test since it is a test which considers various issues into consideration. Here we are trying to understand what are the occasions in which one uses instant food products by MTR? a) Serving guests b) Festivals c) Parties d) Regular usage This test is applied to ascertain whether MTR products are used on a regular basis or occasionally.
Chi-Square Table
2
2
E
O-E
(O-E)
24
23.75
0.25
0.0625
0.002
15
23.75
-8.75
76.5625
3.22
18
23.75
-5.75
33.0625
1.329
38
23.75
14.25
203.0625
8.55
Total
χ
2
O
(O-E) /E
13.164
(cal)
2
= ∑(O-E) / E = 13.164
2
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Level of Significance (LoS) = 5% 2
So, χ tabulated using DoF 5 and LoS 5% =7.813 Step 4: 2
2
Since, calculated value of χ (13.164) is greater than tabulated value of χ (7.813), we reject the null hypothesis. Hence, the alternate hypothesis i.e. Usage of MTR food products is not regular is accepted.
Testing of hypothesis OF Question 10
from Consumer survey
questionnaire Step 1: Null Hypothesis (H0): Advertisement and word of mouth have equal importance. Alternate Hypothesis (HA): Advertisement has more impact. It is a normal distribution test and it is a one tail test. Step 2: The level of significance selected for the test is 5% since some of the respondents may give incorrect information. Step 3: M .P .B I RLA
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Here we are trying to understand from where did customers hear about instant food products by MTR? a) Advertisement b) Kiosks c) Word of mouth d) Sales promotion
Where P1= 0.58, P2 = 0.44, (1 – P1) = 0.42, (1 – P2) = 0.56, n1= 109. N2= 109 Hence Z (cal) = 2.153 Z (tab) = 1.645
Step 4: Since, Z (cal) [2.153] is greater than tabulated value of Z (tab) = 1.645 We reject the null hypothesis i.e. Advertisement and word of mouth have equal importance. Hence, the alternate hypothesis is accepted i.e. Advertisement has more impact.
Testing of hypothesis for Question 11 from
Consumer survey
questionnaire Step 1: Null Hypothesis (H0): 50% of the population considers pricing of MTR instant food products to be moderate. M .P .B I RLA
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Alternate Hypothesis (HA): 50% of the population considers pricing of MTR instant food products to be high but affordable.
Step 2: Here we are trying to understand what do customers think about the pricing of the product? a) Nominal b) Moderate c) High but affordable d) Very high and not affordable
Using z- test to test the hypothesis Z= Ps=0.57. Here Ps corresponds to the positive responses of the sample P=0.5 Q=1-P= 1- 0.5 = 0.5
Hence Z (cal) = 1.4 Z (tab) = 1.96
Step 3: Since, Z (cal) 1.4 is less than tabulated value of Z (tab) 1.96 We accept the null hypothesis i.e. 50% of the population considers pricing of MTR instant food products to be moderate M .P .B I RLA
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Testing of hypothesis for Question 14 from
Consumer survey
questionnaire Step 1: Null Hypothesis (H0): Brand MTR is equally popular like all its other competitive brands. Alternate Hypothesis (HA): Brand MTR is a powerful brand when compared to its competitive brands.
Step 2: Here we are trying to understand which of the following ready to eat would be prefer? a) Kitchens of India b) Aashirvaad c) MTR d) Godrej Yummiez Using z- test to test the hypothesis Z=
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Ps=0.771, Here Ps corresponds to the positive responses of the sample P=0.5 Q=1-P= 1- 0.5 = 0.5 Hence Z (cal) = 5.4 Whereas Z (tab) = 1.96
Step3: Since, Z (cal) 5.4 is greater than tabulated value of Z (tab) 1.96 We reject the null hypothesis i.e. Brand MTR is equally popular like all its other competitive brands Hence alternative hypothesis is accepted i.e. Brand MTR is a powerful brand when compared to its competitive brands.
4.2 DATA ANALYSIS AND INFERENCES OF CUSTOMER QUESTIONNAIRE Question 1 What kind of food do you go for apart from home food? Option
Tabulation
Percentage
Restaurant
88
79
Home delivered
6
5
Instant food
17
15
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Inference Restaurants are the most preferred option in food after home food. 88 respondents opted for restaurants i.e.79% of the sample size. As more and more food joints are opening up and the increase in number of shopping malls, people are eating out as a part of their recreation process. Ready to eat food will definitely attract customers who want to save time and labour.
Question 2 Nutrient and hygiene wise rank the option? Option a. Restaurant
Tabulation
Percentage
39
39
Home delivered
28
28
Instant food
33
33
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Inference The above chart is the comparative study between the given options. 39 respondents choose restaurant, Instant food follows next with 33 respondents. This shows consumers are willing to consume instant food products and issues like packing, quality of the food, freshness and nutrient are factors with which they are content with. This is a good sign for instant food manufacturer MTR.
Question 3 What are the reasons to purchase Instant food products? Option
Tabulation
Percentage
Price
1
1
Quick preparation
91
91
Taste
3
3
Brand name
5
5
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Inference This question helps us to understand the factors that influence customers buying behavior. 91% of the respondents opted for instant food due to quick preparation. Thus due to a fast pace life consumers have less time to prepare food and thus this is where instant food fit in the requirements of the consumers. Others factors like price, taste and brand name are not issues which affect the buying behavior of the consumers
Question 4 Do you use instant food products of MTR? Option
Tabulation
Percentage
Yes
84
84
No
16
16
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Inference 84% of the population responded positively when asked if they consumed instant food products of MTR. This shows more than 50% of the population is aware of brand MTR. This also shows that it is a trusted brand and also a popular brand which has satisfied its customers wants.
Question 5 How frequently you use instant food products by MTR? Option
Tabulation
Percentage
1-2 in a month
33
33
3-4 in a month
19
19
On special occasion
33
33
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Inference It is clear from the above chart that MTR instant food products are used on an average twice a month and on special occasions as the respondents have equally opted for it. This can also be inferred that MTR provides food for regular requirement as well as the special need for special occasions.
Question 7 Do you find the same taste as compared to home food? Or Does the food product match the standards of your taste? Option
Tabulation
Percentage
Yes
52
52
No
41
41
Don’t know
7
7
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Inference With 52 respondents opting for yes indicates MTR instant food products are of superior quality and taste of the food is as good as food prepared at home. This is one attribute which has influenced the purchasing decisions of many consumers making MTR a popular brand. But 41 respondents do not agree to the taste being similar to home food, thus MTR need to improvise on the taste of its products manufactured.
Question 8 Have you seen or can you recall any advertisements or promotions of instant food products by MTR? Option
Tabulation
Percentage
Yes
76
76
No
24
24
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Inference Since 76% of the population has seen MTR advertisement which means the company has successful spread awareness about the existence of the brand. Though the advertisements are aired occasionally it has managed to capture the attention of the consumer and also can be recalled by the customers. This is also because MTR is a home brand of Bangalore and thus no advertisements is required to spread awareness.
Question 9 From where do you buy instant food products by MTR? Option
Tabulation
Percentage
Super markets
76
76
MTR retail outlets
23
23
Local kirana
8
8
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Inference After awareness the availability of the product at point of purchase is important. 76 respondents said they purchase MTR instant food products from super markets, 23 respondents purchase it from local kiranas. Local kiranas are present in huge numbers and are wide spread throughout Bangalore thus product should be made available there and 8 respondents purchase from MTR retail outlets directly. Since more than 70 percent of respondents purchase MTR instant food products from super markets, we can conclude that the product coverage is pretty good and they are well promoted by the super market.
Question 12 Are you satisfied with the packaging of instant food products by MTR? Option
Tabulation
Percentage
Satisfied
94
94
Not satisfied
6
6
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Inference Packaging is one major aspect of marketing of the product. MTR spends a huge amount in getting the best packaging done for its instant food products to ensure quality and shelf life of the product. Ready to eat products have sterilized packaging but still there are certain doubts in the mind of customers regarding packaging since the climate of India is very uncertain and variable. 94 respondents were satisfied with the packaging of product while 6 were not satisfied. The shows that MTR has got its packaging right and has successfully created awareness among the people about the hygiene and safety of the product
Question 13 What kind of packaging do you prefer? Option
Tabulation
Percentage
Tetra Packs
75
75
Jars
9
9
Container
18
18
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Inference As we observe from the chart above 75% of the respondent are satisfied with MTR Tetra packing. Only 25 % of the population feels the packing should change. Thus MTR should continue to pack the instant food products in tetra packs but the look of the pack can change as that will attract the customers. Besides tetra packs ensure quality of the product and are also easy to transport to the retail outlets from tha factory outlet. They are easy to store for the retailers also.
4.3 DATA ANALYSIS AND INFERENCES OF RETAILER QUESTIONNAIRE Question 4 Frequency of order taken: Option
Tabulation
Percentage
Once monthly
1
10
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Twice monthly
2
20
Thrice monthly
2
20
Four times in a month 5
50
Inference The above graph shows that out of sample size of 10 retailers 5 of them place the order four times in a week. Which makes it 50% of the retails of MTR instant food products place their order once weekly.
Question 7 Availability of stock compared to the competitors brands - Godrej yummiez, Kitchens of India and Aashirvaad ? Option
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High
9
90
Low
1
10
No stock
0
0
Inference Availability of MTR instant food products is high and the retailer also agree to it .There are no retailer who do not keep MTR products at all. This show that it is a brand which sells and MTR does make sure there product are available to the customers at any place. But there some retailer who found the availability to be low and thus the company needs to work on this slack. Thus MTR is highly available than its competitors brand which indicates its monopolistic position in the markets.
Question 10 Are you satisfied with the distributor regarding the trade terms:
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Option
Tabulation
Percentage
Satisfied
6
60
Not satisfied
1
10
Somewhat satisfied
3
30
Inference For the sale of the products there are certain trade terms which are set between the company and retailers for e.g. Shelf space, promotion archives, retention of unsold stock, limitation of stock to be purchased, payment on credit, advance payment and certain other factors. Research showed that 60% where satisfied with the terms only 30% showed some dissatisfaction
Question 11 Are you satisfied with the distributor regarding the frequency and method of delivery? M .P .B I RLA
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Option
Tabulation
Percentage
Satisfied
8
80
Not satisfied
2
20
Inference Logistics or supply chain are important aspects of sales, frequency of distribution, how fast the company respond towards demand of the retailers, the mean mode of delivering the goods is it safe, as we are talking food products any sort of damage due to transportation of goods may bring loss.80% of the retailers responded satisfactory and 20% where dissatisfied with delivery and response method. The main problem which they highlighted was late response of the demand made, and sometimes these food products where not delivered safely which resulted damages in the packaging
Question 12 Retailer satisfaction level with kitchens of India range quality, pricing and promotional M .P .B I RLA
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services? Option
Tabulation
Percentage
Satisfied
7
70
Not satisfied
3
30
Inference Quality and pricing are factors which are driving force behind the buying decision process of the consumers. MTR takes care of these factors and has always provided to its customers quality products at affordable prices. 80% of the retailers were satisfied with their promotional activities. They said that since MTR is a strong home brand promotional activities are not required as brand awareness is high. But 20 % felt it was not satisfactory and efforts needs to be taken as new and strong players are entering the instant food industry and this may affect the monopolistic status of MTR.
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MAJOR RESEARCH FINDINGS
The study shows that the package food market has grown in India and so the consumption rate, but still it is facing problems to capture the Indian consumers. Some of the findings, encountered during working on this research, are:
™ Indian consumers still prefer freshly cooked home food over instant food products due to the usage of preservatives and other chemicals in the instant food. Rumors that instant food is toxic in nature have stoped many consumer to consume the product. ™ Doubts still exist on the nutrient and hygiene of these instant food products as news of bad conditions of the factory outlets are constantly seen. ™ Instant food is not used on a regular basis and is only used for certain occasions or in times of emergency when time is a constrain. ™ Advantage that MTR has when compared to other competitors brands is that the consumers feel the products tastes like home food. ™ Extensive advertisement or sales promotion activities is not required in case of MTR as it is a home brand and consumer are well aware of it. ™ MTR products are widely available, from super markets to small next to door Kirana shops. The distribution network is widely spread and strong.
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™ MTR gains a lot of free publicity due to word of mouth thus reduce their need of promotional strategies. ™ The pricing strategies are also good as they cover all the expenses for the company and also give them a little profit. The consumers also don’t feel the prices are not affordable and can see value for their money due to superior quality and packaging of the product. ™ MTR has always brought innovation into their products and thus it has the appeal with their customers and also has built brand loyalty. ™ The stocks are supplied on weekly basis and the supply is regular thus making the availability continues. ™ Some of the products are made available only are exclusive MTR outlets only and are not supplied to other distributors.
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RECOMMENDATIONS ™ MTR should create awareness that instant food can be used regularly and it does not have any harmful effects. ™ MTR should also increase their promotional activities as in Bangalore consumer are aware of the brand, but consumers in north region and other parts of India are not that aware of the brand. ™ The packaging can be more attractive and appealing. The packaging should be made keeping in mind the convenience of the consumers. ™ Sales representatives should be sent on a regular basis to retail outlets where to adhere to any complaints or suggestion given by consumers. ™ The taste of the instant food products can be improved in case of North Indian dishes and Soups. ™ New items can be introduced in the instant food, but MTR should stick to Indian food only because consumer perception towards MTR food products will not welcome western dishes in a positive way. ™ MTR should focus on exporting its range of instant food as there are many Indians who have settled abroad and can connect to the product.
™ MTR should also target consumer who are constantly travelling abroad or other places in India, as food can be carried and consumed conveniently.
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BIBLIOGRAPHY
™ Journal of Services Marketing, ICFAI Publications ™ Marketing Mastermind, ICFAI Publications ™ Journal of Marketing, ICFAI Publications ™ Business Standard (Strategist) ™ Business Line (Catalyst) ™ Economic Times (Brand Equity)
™ Financial Express (Brand Wagon) ™ Harvard Business Review ™ Economist ™ The Hindu ™ The Financial Express ™ www.Wikipedia.org ™ www.consumerpsychologist.com ™ www.icmrindia.org ™ www.ManagementParadise.com ™ www.indiastudychannel.com
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™ Consumer Behavior by Tyagi Cl, Arun Kumar ™ Consumer Behavior, 9th Edition by Leon G. Schiffman, Leslie Lazar Kanuk. Published by Prentice hall of India. ™ Consumer Behavior by Matin Khan rd
™ Consumer perception, 3 edition by Schiffman, Bednall, O'Cass, Paladino and Kanuk. Published by Pearson Education.
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ANNEXURE
CUSTOMERS QUESTIONNAIRE
Dear respondent,
We the students of M.P.Birla Institute of Management, Bangalore are conducting this survey as part of our project in the field of market research. The purpose of this activity is to measure the penetration of Instant food products by MTR in Bangalore city. Given below is the questionnaire, we request you kindly to give your responses to the questions given therein. We assure you that the information so provided by you will be kept strictly confidential. We shall greatly appreciate your responses: Ekta .a. Jain
1. What kind of food do you go for apart from home food? i. Restaurant ii. Home delivered iii. Ready to eat
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2. Nutrient and hygiene wise rank the option? i. Restaurant ii. Home delivery or carry away food iii. Ready to eat
3. Reasons to purchase ready to eat? i. Price ii. Quick preparation iii. Taste iv. Brand name
4. Do you use instant food products by MTR? i. Yes ii. No
5. How frequently you use instant food products by MTR? i. 1-2 in a month ii. 3-4 in a month iii. On special occasion
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6. What are the occasions in which you use instant food products by MTR? i. Serving guests ii. Festivals iii. Parties iv. Regular usage
7. Do you find the same taste as compared to home food? Or Does the food product match the standards of your taste? i. Yes ii. No
8. Have you seen or can you recall any advertisements or promotions of instant food products by MTR? i. Yes ii. No
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9. From where do you buy instant food products by MTR? i. Super markets ii. MTR retail outlets iii. Local kirana
10. From where did you hear about instant food products by MTR? i. Advertisement ii. Kiosks iii. Word of mouth iv. Sales promotion
11. What do you think about the pricing of the product? i. Nominal ii. Moderate iii. High but affordable iv. Very high and not affordable
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12. Are you satisfied with the packaging of instant food products by MTR? i. Satisfied ii. Not satisfied
13. What kind of packaging do you prefer? i. Tetra Packs ii. Jars iii. Container
14. Which of the following ready to eat would you prefer? i. Kitchens of India ii. Aashirvaad iii. MTR iv. Godrej Yummiez
15. Your recommendations for improvement: ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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A word about yourself Name: Address: Age: a) 18 – 25
b) 26 – 30
c) 31 – 40
d) above 40
Occupation: student/ Service/ Business/ Any other………. Sex: Male/ Female Annual Income: a) < 100000 b) 200000 - 250000 c) 250000 – 300000 d) > 300000
THANK YOU FOR SPARING YOUR VALUABLE TIME FOR GIVING RESPONSES TO THE QUESTIONNAIRE.
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RETAILERS QUESTIONNAIRE
Dear respondent,
We the students of M.P.Birla Institute of Management, Bangalore are conducting this survey as part of our project in the field of market research. The purpose of this activity is to measure the penetration of Instant food products by MTR in Bangalore city. Given below is the questionnaire, we request you kindly to give your responses to the questions given therein. We assure you that the information so provided by you will be kept strictly confidential. We shall greatly appreciate your responses: Ekta .a. Jain
1. Name of the retail outlet:
2. How old is the outlet?
3. No. of people employed:
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4. Frequency of order taken: i. monthly once ii. Monthly twice iii. Monthly thrice iv. Monthly four times
5. Frequency of delivery of stock: i. Monthly once ii. Monthly twice iii. Monthly thrice iv. Monthly four times
6.
Availability of stock i. Available ii. Not available iii. Don’t keep
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7. Availability of stock compared to the competitive brand, Godrej yummiez, Kitchens of India and Aashirvaad? i. High ii. Low iii. No stock
8. Does your outlet cover entire range of product? i. Yes ii. No iii. Don’t keep
9. How often the company sales person visits your shop? i. Visit regularly (every month) ii. Occasionally iii. No visit
10. Are you satisfied with the distributor regarding the trade terms: i. Satisfied ii. Not satisfied iii. Somewhat satisfied
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11. Are you satisfied with the distributor regarding the frequency and method of delivery? i. Satisfied ii. Not satisfied
12. Retailer satisfaction level with MTR range quality pricing and promotional service? i. Satisfied ii. Not satisfied
THANK YOU FOR SPARING YOUR VALUABLE TIME FOR GIVING RESPONSES TO THIS QUESTIONNAIRE
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EXPLANATION TO THE RESEARCH INSTRUMENT USED
STATISTICAL ANALYSIS Statistical analysis is used for estimating the values of unknown characteristics (parameters) of the population and for testing hypothesis for drawing inferences. Analysis may thereof be broadly classified into: 1. Descriptive Analysis 2. Inferential Analysis Descriptive Analysis – this type of analysis describes the nature of an object or phenomenon under study. This sort of analysis may describe data on one variable, two variable, or more than two variables. Accordingly it is called univariate analysis, Bivariate analysis and multivariate analysis respectively. The analysis consists of multiple regression analysis, multivariate analysis of variants, factor analysis canonical analysis and multiple discriminant analysis. Inferential Analysis- Is concerned with drawing inferences and conclusions from the findings of a research study. There are two areas of statistical inferences a) Statistical estimation b) Testing of hypothesis
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TESTING OF HYPOTHESIS Hypothesis is a tentative proposition formulated for empirical testing. It is a declarative statement combining concepts. It is tentative answer to a research question. It is tentative, because its veracity can be evaluated only after it has been tested empirically. Lundberg defines hypothesis as “A tentative generalization, the validity of which remains to be tested” The characteristics of a good hypothesis are: 1. Conceptual clarity. 2. Specificity. 3. Testability. 4. Availability of techniques. 5. Theoretical relevance 6. Consistency 7. Objectivity 8. Simplicity There are two types of hypothesis: i.
Null Hypothesis: It states that there is no significant difference between the sample value & the population value. This means that the observed different are due to random fluctuations. The null hypothesis is denoted by (H0).
ii.
Alternate Hypothesis: In case the test rejects the null hypothesis, one’s should have an alternate to accept it. It is provided by alternate hypothesis & denoted by (HA).
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TESTING OF HYPOTHESIS Techniques of hypothesis testing are used if we have an idea about the value of the parameter in question. The modern theory of probability plays a vital role in decision making and the branch of statistics with helps in arriving at the criteria for such decision is known as testing of hypothesis.
LEVELS OF SIGNIFICANCE It represents the level of risk; the experimenter is ready to take in rejecting a true hypothesis, & is denoted by Alpha (α). (1- α) give the level of confidence of the experimenter in taking the decision. It is always preferable to keep the level of significance at a low level or percentage, it means that one’s should not reject a true hypothesis. Beta (ß) represents the risk of accepting a false hypothesis. (1- ß) is called ‘The Power of the Test’. DEGREE OF FREEDOM It refers to the number of observations that can be varied without changing the constraints or assumptions associated with a numerical system. TYPES OF ERROR While testing hypothesis there are four possible combinations between population value & sample value. These combinations are: i.
Hypothesis is true & the test accepts it.
ii.
Hypothesis is true & the test rejects it.
iii.
Hypothesis is false & the test accepts it.
iv.
Hypothesis is false & the test rejects it.
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PROCEDURES FOR TESTING HYPOTHESIS Step one: Setting up a null hypothesis donated by (H0); this means there is no statistical difference between sample statistic & population parameters. In case of (H0) is rejected, one’s must have an alternative hypothesis accept, therefore, one’s must setup an alternative hypothesis denoted by (HA). It may be in terms of not equal to (≠), (<), or (>). Whenever the sample statistic is (≠) population value, then the test is said to be two-tailed test. If the statistic is (<) or (>) of the population value, then the test is said to be one-tailed test. Step two: Before starting the test, one’s must specify the level of significance, which is nothing else but the probability of rejecting the two hypotheses. This gives the tabulated value of that statistic. Step three: Selection of an appropriate distribution for the test, which is known as ‘Test Statistic’. The distributions generally used are Normal Distribution,‘t’ Distribution, or Fisher’s ‘F’ Distribution, and Chi-Square Distribution. Step four: Calculation of the necessary value from the given data for the test. Step five: Conducting actual test & it’s known as ‘Calculated Value’.
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Step six: Making the decision as follow: i. If calculated value is smaller that (<) the tabulated value, (H0) is accepted. ii. If the calculated value is greater than (>) the calculated value, (H0) is rejected, & (HA) is accepted.
Chi-square Test Chi-square test statistically determines significance in the analysis of frequency distribution. The logic involved in the chi-square test is that of comparing the observed frequencies and the expected frequencies. It is called a non-parametric test because it is based wholly on sample observations and does not require any value corresponding to a population parameter it is defined as Chi-square test.
Z- TEST A Z-test is any statistical test for which the distribution of the test statistic under the null hypothesis can be approximated by a normal distribution. Since many test statistics are approximately normally distributed for large samples (due to the central limit theorem), many statistical tests can be performed as approximate Z-tests if the sample size is not too small. In addition, some statistical tests such as comparisons of means between two samples, or a comparison of the mean of one sample to a given constant, are exact Z-tests under certain assumptions.
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DIRECTIONS FOR FURTHER RESEARCH
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