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D I S S E R T A T IO IO N O N THE PARTIAL FULLFILLMENT OF THE REQUIREMENT FOR MASTER OF BUSINESS ADMINISTRATION
MARKETING RESEARCH AND CONSUMER SATISFACTION ON DABUR PRODUCT’S
Submitted to: NEERAJ KATIYAR
Submitted by MANISH JADON
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CERTIFICATE
This is to certify that Mr. MANISH JADON, M.B.A. (2011-13 Batch) a student of IIMT COLLEGE OF ENGINEERING GREATER NOIDA, the project on ― MARKETING RESEARCH AND CONSUMER SATISFACTION ON DABUR PRODUCT’S ‖. The survey, data collection, & analysis work for preparing the project has been carried out by the student in partial fulfillment of the requirements for the award of M.B.A, under my guidance and supervision. I am satisfied with the work of Mr.MANISH JADON . Date:
Prof:NEERAJ KATIYAR
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CERTIFICATE
This is to certify that Mr. MANISH JADON, M.B.A. (2011-13 Batch) a student of IIMT COLLEGE OF ENGINEERING GREATER NOIDA, the project on ― MARKETING RESEARCH AND CONSUMER SATISFACTION ON DABUR PRODUCT’S ‖. The survey, data collection, & analysis work for preparing the project has been carried out by the student in partial fulfillment of the requirements for the award of M.B.A, under my guidance and supervision. I am satisfied with the work of Mr.MANISH JADON . Date:
Prof:NEERAJ KATIYAR
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INTRODUCTION
The fruit juice market has gone through a revolution; this is also due to growing awareness of health issues and a more sophisticated cocktail culture requiring fruit juice as a mixer.
After a morning cup of chai, the typical Indian sits down to a heavy breakfast of parantha, pickle, oil-drenched vegetables, washed down by a glass of buttermilk. But as Indians adopt a more rushed western lifestyle, breakfast habits too are changing.
With the increase in health consciousness, desire for better hygiene and convenience, Indians feature amongst the top 10 most frequent purchasers of fortified fruit juices (37%). This indicates greater room for growth against frequency of purchase in other developing economies within the Asian region.
Growing health and body consciousness has food companies scrambling onto the health platform. While the consumer has been seen increasingly taking to health fads and everything and anything that delivers a `healthy' lifestyle, companies in the FMCG sector have figured out that this is the way to higher growth rates and are responding to enhanced consumer demand.
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______________________________________________________ ___________________________ ___________________________________________ ________________ In the late 1990s, the Indian foods group Dabur India introduced the country‘s first boxed fruit juice, a hygienic alternative to canned juices and the fresh juice sold by street vendors.
Looking at the Indian consumers, and there are so many juice-walahas in the market, so juice was not something Indian consumers had not seen before. So, the companies are trying to give juices in a packaged form, which is more hygienic. Example: In 'Real', we have two range of juices one is Real fruit juice other is Real Active juice. The Real fruit juice is targeted towards the housewife and kids, and the Real Active juice is targeted towards the young adults between the age of 24 to 35. We are very clearly focused on the in-home segment and soft drink is more out- of- home impulse purchase.
Fruit juices are perceived as anytime beverages, with consumption being spread more or less evenly between the mid-mornings, afternoons and evenings. And Generation ‗Now‘ is as much inclined to sipping fruit juices as colas, with teenagers driving the maximum trials.
Fruit based beverages in tetra packs are segmented as juices, nectars and fruit drinks, depending on the extent of fruit content in the drink. In the fruit drink market Parle is the largest player with its Frooti brand. Godrej sells fruit drinks under the Jumpin brand. The growth in the fruit drink segment has slowed down due to the launch of several new brands in the nectar and fruit juice categories. Some of the leading brands in
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______________________________________________________________________ these categories are Onjus, Real, Life, Tropicana etc. Godrej has also launched new brands X's and Jumpin Masti in these segments to expand the market.
The fruit juices market is split in two main categories in India: fruit juices and fruit drinks market. The classification is based on the % of the fruit pulp content in the beverage. Fruit drink has to have minimum fruit pulp content of 10%, while Nectar needs to have a minimum fruit pulp content of 25%.
While technically, any product which contains more than 85 per cent juice comes under fruit juice category and those which have less than 15 to 20 per cent juice content, is classified as fruit drink. The 100 per cent fruit juice market is currently estimated to be around Rs 80 crore and is dominated by Dabur Foods' Real and Pepsi Foods Tropicana. Enkay's Onjus is another player in the segment. The soft drink major's decision to get aggressive on fruits drink market forms part of its worldwide focus on the non-alcoholic commercial beverages market.
Consumers are increasingly reaching out for fruit-based drinks and noncarbonated soft drinks, sometimes even at the expense of a cola or any other brand of carbonated soft drink (CSD).
Though juices make up only five per cent of the estimated Rs 5,300-crore soft drink segment, choices in this category are plentiful. They include Real from Dabur, Tropicana from the Pepsi stable and Frooti, the drink from Parle Agro ‗frooti‘.
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With the market growing at a healthy rate and with changing lifestyles and rising levels of health consciousness among consumers today, the demand for healthier products like packaged fruit juice is only going to increase in the times to come.
The fruit juice category is rapidly growing by over 50 per cent; it's seen as healthy compared to soft drinks. They are more hygienic than roadside fruit juices and are a big hit with yuppies. Also, non-sugar variants find favour with fitness freaks.
Packaged fruit juice, virtually non-existent a few years ago, is now making its appearance at the breakfast table. , creating a market that is growing by 50 per cent annually.
Earlier there was no fruit juice in the market. Only canned juice and ready-toserve beverages in bottles were available. Today we have number of brands in carton and tetrapack. Such as 'Onjus' of Enkay Texofood, 'Real juice' of Dabur, 'Jumpy' of Godrej etc. all packed in convenient asceptic cartons. We will be shortly getting more brands of fruit juice including 'Tropicana' from Seagram.
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OBJECTIVES OF THE STUDY
Preference of consumer for the packaged fruit juices vis-à-vis other beverages.
Preferred brand of packaged fruit juices in the market (Influencing factors, brand loyalty, motivated by other factors, packaging, sizes)
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RESEARCH METHODOLOGY
This chapter aims to understand the research methodology establishing a framework of evaluation and revaluation of primary and secondary research. The techniques and concepts used during primary research in order to arrive at findings; which are also dealt with and lead to a logical deduction towards the analysis and results. 1.1 RESEARCH DESIGN
A research design is the detailed blueprint used to guide a research study towards its objectives. It is series of advanced decisions taken together comprising a master plan or a model for the conduct of research in consonance with the research objectives. It details the procedures necessary for obtaining the information needed to structure or solve the marketing research problems.
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______________________________________________________________________ The researchers propose to first conduct a intensive secondary research to understand the full impact and implication of the industry, to review and critique the industry norms and reports, on which certain issues shall be selected, which the researchers feel remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory research. This stage shall help the researchers to restrict and select only the important question and issue, which inhabit growth and segmentation in the industry. These set of questions are then proposed to be studied under a descriptive research setting finally leading to formation of hypotheses and testing under causal research.
Hence proposed research path is:
1. Literature review – Exploratory 2. Descriptive researches 3. Formations of hypotheses based on descriptive 4. Testing of hypotheses by undertaking Causal research.
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1) EXPLORATORY RESEARCH
The objective of exploratory research is to explore or search through a problem or situation to provide insights and understanding. Exploratory research is meaningful in any situation in which the researcher does not have enough understanding to proceed with the research project. Typically there is a little prior knowledge at the disposal of a researcher to build upon.
The exploratory research conducted brought out a host of factors which affect the consumer buying attitude. These factors were then filtered to form a set of the most important alternatives. The purpose was to find an accurate snapshot of the market environment in fruit juice market. The relevance and importance of these factors was studied in a descriptive manner so as to get an overview of the fruit juices.
2) DESCRIPTIVE RESEARCH
Major objective of descriptive research is to describe something – usually market characteristics or functions. Descriptive research is characterized by the prior formulation of specific hypotheses. Here information is clearly defined. A majority of market research studies are descriptive research studies. A descriptive research study must collect data for a definite purpose. In descriptive research, hypotheses often exist, but they may be tentative and speculative. 10
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3) CAUSAL RESEARCH
The descriptive research conducted was not enough as it showed that two variables are related but could not determine the nature of relationship between them. Therefore, the nature of relationship between variables was known by doing causal research. The exploratory research was conducted by interviewing people. A brainstorming session was held which threw out a number of ideas and factors with respect to consumer buying relation to shampoo. Thereafter, the factors generated were transformed into a questionnaire, which was used to conduct causal research.
1.2 TARGET POPULATIONS AND SAMPLE SIZE
The drinking of fruit juices is common to the majority of any sample population in or around the metropolitan statehood of Delhi, Noida. Hence geographical segmentation of sample size is of no use, as fruit juice preference is personal and differs from person to person and has low correlation with geographical location, but the section and consumption of fruit juices, as a commodity has a direct relation with the income level. Hence the researchers shall equip the questionnaire with an income level judgment question. A Sample size of 468 respondents was taken on the basis of random sampling.
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1.3 DESIGNS, TECHNIQUE, and DATA COLLECTION METHOD
The population profile drinking fruit juice is diverse and in large numbers, hence instead of census; the technique of sampling will be used. As the population size is large and both the cost and time associate with obtaining information from the population is high. The sample list shall contain all consumers who drink fruit juices. With such a large dominator of sample list and no grouping of information, it is essential to undertake non probability sampling. As it is the simple and gains intuitive understanding of the market. As all the samples have equal probability of getting selected as the sample population, it is convenient and most feasible while studying fast moving consumer goods, like fruit juices. The respondents comprised both male and female of different age groups, with varying income group, coming from different educational backgrounds.
1.4 PLAN OF ANALYSIS:
The data obtained through questionnaire was processed using the statistical software SPSS 12.0
Additional information has been obtained from various business journals, magazines, newspapers, websites etc.
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______________________________________________________________________ 1.5 SOURCE OF INFORMATION
PRIMARY SOURCE OF DATA: The questionnaire formed the basis of collecting the primary data.
SECONDARY SOURCE OF DATA: The secondary sources of data where various business journals, magazines, newspapers, websites etc. are also an alyzed.
First hand information was collected from various packed fruit juice compa nies.
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SECONDARY RESEARCH
1. MARKET FOR FRUIT JUICES Stiff competition in the fruit juice market
The Juice category is the fastest growing segment at present, estimated to be growing by 20-25% pa. The Rs 500 crore non-carbonated beverage market in the country is composed of fruit drinks, nectar and juices.
The total size of the branded non carbonated beverages in the organized segment is estimated at Rs500crores. While the fruit drink segment is estimated at Rs 250-300 crore (branded and packaged), the juice market is valued at Rs 150 crore and the nectar is a small category of about Rs 35-50 crore. And the popular brands vying for a share in the sector are Parle's Frooti, Godrej's Jumpin, Pepsi's Tropicana, and Dabur's Real, and branded fruit juices from Surya Foods among others.
The fruit drink market (juice accounts for 30 per cent, nectar is 10 per cent and fruit drinks are 60 per cent of the market today) has grown at a 20 per cent to 25 per cent rate.
The Fruit Processing Sector in India has grown by about 20% while the demand for fruit juices in the country is growing at about 40%. There is tremendous potential in
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______________________________________________________________________ the untapped market that constitutes consumers who are on the constant lookout for `healthy' products such as fruit juices.
Dabur‘s fruit juice sales rose 25 per cent in the initial years but have recently seen annual growth of around 50 per cent. There‘s been a boom in the last two years. Dabur‘s Real brand of nine juices includes orange, mango, guava and lychee, while its Activ brand includes fruit and vegetable combinations. That most of Dabur‘s popular juices were already made from locally sourced fruits such as lychee and guava. Currently the sales of these juices are growing by 60 to 65 per cent a year against 20 per cent for orange juice.
PepsiCo has been selling a similar range of packaged fruit juices at similar prices under the Tropicana Premium brand since 2001, accounting for 12 per cent of its total business in India. Of this, the more expensive juices segment has grown at a 40 per cent rate this year. It accounted for only 15 per cent of the fruit beverage market three years back. Obviously, some segments are doing better than others.
Fruit-based milk drinks {market size Rs 20 crore to Rs 25 crore (Rs 200-250 million)} like N-joi are currently stagnating. But fruit-based soya milk, another emerging segment reckoned to be worth about Rs 15 crore (Rs 150 million) to Rs 20 crore is expected to grow rapidly.
Godrej, which recently launched the Sofit brand, is experimenting with this market for the second time.
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______________________________________________________________________ Cola sales fell dramatically after the pesticide controversy and this seems to have benefited the fruit beverage industry. Soft carbonated drinks (colas) grew 17 per cent in 2002 but fell 15 per cent in 2003. It's one of the key factors that has led to the kind of growth that we have seen in the last year. But this growth will continue since consumers are now hooked on. The other factors that have helped are the different pack sizes that players started offering in the last year. Tropicana launched a 500 ml pack at Rs 25 compared to a one litre pack for Rs 76.
All of this has resulted in increased in-home consumption of juices, which has gone up from 30 per cent three years back to almost 80 per cent today.
Everyone now has big plans for the future. Dabur, which currently has a 55 per cent market share, wants to launch more Indian fruits and even fruit and vegetable juice combinations in the near future. It is also trying to bring do wn prices.
So, it has launched Coolers 15 per cent cheaper than Real because it has a lower pulp content. Similarly, other players like Godrej are also looking at launching new variants including combinations by year-end. Parle Agro, which has been experimenting with sugarcane juice for sometime now, has launched mango Frooti in 65 ml packs in Pune, Gurgaon and Mumbai for Rs 5. A year back, it extended the Frooti brand into pineapple and orange variants as well as launching it in 250 ml and one-litre PET bottles.
But the big issue is that they are all playing with the same fruits. It has to be seen how long consumers can sip the same concoctions.
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______________________________________________________________________ Mother Dairy's entry into the Rs110-crore packaged fruit juice market in the country will pitch it directly in competition with the two top fruit brands in the country Real and Tropicana.
2. MAJOR MARKET PLAYERS
PARLE'S FROOTI
Parle Agro‘s Frooti is reported to be over Rs 250-crore turnover a year brand. Frooti‘s market share is claimed to be 85 per cent in the Tetrapak segment and 29 per cent in the mango beverage category (including bottles and TetraPak). Mango fruit beverage is estimated to account for 91 per cent of the sales of all fruit juice variants while orange juice accounts for only 3.1 per cent.
It reaches more than 10 lakh retail outlets in up to class C towns through more than 1,500 distributors and wholesalers directly and indirectly. India's first real fruit drink in Tetrapak is available in three delicious varieties - mango, orange and pineapple Frooti Mango from premium Indian mangoes, Frooti Orange from chilled imported orange concentrate from Brazil and Frooti Pineapple made from ripe juicy pineapple.
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______________________________________________________________________ MOTHER DAIRY’S SAFAL
The Rs 180-crore fruit juices segment is witnessing a 25 p er cent growth rate and Mother Dairy along with other players wants to cash in on the rising demand. Mother Dairy is aiming to expand the reach of its juices in the "top 50 towns in the country" this year. Safal is currently available in orange, mixed fruit, grape and an orange-apple combination.
Safal fruit juices are being launched in four v ariants and will be available in one litre tetrapacks. They will be launched first in Delhi and are likely to be available on retail shelves across the country within the next fortnight.
Mother Dairy's entry into the Rs110-crore packaged fruit juice market in the country will pitch it directly in competition with the two top fruit brands in the country Real and Tropicana.
Mother Dairy said Safal would tap into the high health conscious consumers in metros. The fruit variants now being launched are orange, mixed fruit, grape and the unique orange-apple variant.
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GODREJ'S JUMPIN
The "Jumpin" brand of Godrej Foods is one of the leading brands in the tetra pack fruit drink market in India. The Jumpin range o f fruit drinks come in flavours such as mango, apple, pineapple, litchi and orange. Jumpin turnover is close to Rs. 25 crores, of which roughly 30-35% is institutional. They are packaged in hygienic and aseptic Tetrapak that assures top quality. Ice-cold Jumpin can be enjoyed straight or mixed in a punch or a cocktail. They are available in packs of 200 ml.
Jumpin‘s share has been steadily draining away e ven as Parle‘s Frooti Mango has been topping up its presence in a market that stands at roughly Rs 410 crore today.
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GODREJ XS FRUIT JUICE
Xs range of fruit nectar has more fruits making it thick an d tasty. Also the vitamins and carbohydrates present in it provide extra energy for a fit and healthy living. Available in orange, mango, litchi and pineapple flavours, Xs come in Tetrapaks of 200 ml and 1000 ml. The target consumer for Xs (adult) is different from the typical Jumpin consumer (children).
Under the Xs brand, Godrej has launched Kiwi Kraze, Santra Swing, Berry Blast, Triple tickle, and Lichi Leap.
Godrej Foods already has brands such as Xs and Jumpin in the fruit nectar and fruit drink markets respectively. By launching a third brand in the fruit juice market, it will enter the arena dominated by Pepsi Foods' Tropicana and Dabur's Real. The fruit juice segment is at present growing at 20 per cent in a market.
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PEPSI'S TROPICANA
Tropicana orange juice was launched in Delhi and Bangalore in May/June'1999. Ever since, it has reportedly built up a retail strength of about 2,000 outlets in Delhi and over 1,000 in Bangalore.
India is a very important market for Tropicana and is among the top 10 biggest markets for the brand. The company sources orange juice concentrates from Brazil. Tropicana is available in orange, apple, grape and cranberry flavours and a cocktail in Ruby-red. They come in Tetrapaks of one litre and PET bottles of 500 ml and one litre. Pepsi's Tropicana has tied up with equestrian sports and polo clubs to build bridges with the well-heeled young adults.
Of the two pack sizes that Tropicana is available in (250-ml and 1-litre packs), it is the 1-litre pack that has been doing better in the Delhi market. While the 250-ml tetra pak is priced at Rs. 15, the 1-litre home consumption pack is tagged at Rs. 57.
Of the Rs. 1.0 billion domestic packaged fruit juice market (including tinned juices), Pepsi's Tropicana brand fruit juice has registered double digit growth and has outpaced the growth of the packaged fruit juices market in India. Tropicana has an estimated share of 30-35%.
At present Tropicana has about seven flavours in the market — apple, pineapple, orange, apple orange, grape and mixed fruit. Tropicana is also looking at making India the sourcing hub for certain varieties of fruits mainly mango. 21
______________________________________________________________________ Pepsi recently launched Tropicana Tropics Mango Nectar, which is made entirely from mangoes sourced from within India, as against other flavours for which sourcing has to be done from other countries. The introduction of Tropics Mango Nectar will be followed by Tropics Litchi and Tropics Guava.
Tropicana Beverages Co. plans to add more to its existing portfolio comprising orange, apple, sweet orange, pineapple and grape. Two new flavours, tomato and mixed fruit, are slated for launch later this year.
LEH BERRY
The fruit juice category is growing at a healthy rate and has attracted new entrants like Ladakh Foods who have introduced a new variety of its seabuckthorn nectar juice. Ladakh Foods, makers of the Leh Berry seabuckthorn berry drink, have also launched an apple-peach combination juice and a mixed fruit variant. Leh Berry, its first fruit juice in Delhi and it's selling it in the more affluent p arts of town.
Ladakh Foods' target of capturing at least 7 per cent of the market share within a year and 20 per cent by 2006-end is ambitious. Ladakh Foods had a turnover last year of Rs 2 crore (Rs 20 million) and it aims to boost that five times by 2004.
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______________________________________________________________________ The company is looking at conventional flavours like apple but the plan for the near future is to introduce apricot, passian (a fruit pop ular in the north east) and even pomegranate mixes. Currently, Leh Berry is available in 200 ml and 1,000 ml packs priced at Rs 12 and Rs 55 respectively.
BERRI LTD, AUSTRALIA
Berri Ltd, Australia's largest manufacturer of fruit and vegetable products, is looking at achieving an annual volume of around 10 million litres in the country.
The Berri's juices come in flavours such as apple, orange, orange-mango, apricot and apple-lime, and are available in three sizes -a 250 ml 'gulper', 1- and 2-litre bottles.
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DABUR
Dabur's flagship brand Real fruit juice is a market leader in the packaged fruit juice category. Real was launched in 1996 and the brand has carved out a niche for itself by claiming to be the only fruit juice in packaged form that is 100 % preservative free. Real with a market share of 55 % offers to its consumers the largest range of 9 juices that comprise orange, mango, pineapple, mixed fruit, grape, guava, tomato, litchi and cranberry.
Real Fruit Juice is India's first and only packaged Fruit Juice brand to get SGS (Societe Generale de Surveillance) certifications for high safety standards used in packaging that conform to the stringent HACCP and GMP standards.
Dabur Foods, the largest packaged, preservative-free fruit juice manufacturer, has launched a new sub-brand Real Junior, targeted at kids below six years — creating an age-specific market segmentation. Real Junior has been launched in two flavours — mango and apple, enriched with calcium, in 125 ml packs for children below six years. The vibrant packs with animated fruit characters are intended to appeal to children by highlighting the taste and nutrition of Real Jun ior.
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______________________________________________________________________ Yet another innovative offering from Dabur Foods portfolio this summer, is the 'exotic fruit nectar' variant, Real Cranberry Nectar, to be introduced for the first time in the Indian market. Real Cranberry Nectar, available in 1-litre packs for Rs. 75, offers the flavour and nutritive value cranberry, rich in vitamins, minerals and antioxidants, which makes it a healthy beverage.
Dabur Foods had launched Real Active (without sugar) which was targeted at health-conscious, young executives. Currently, orange and mango juices account for around 40 per cent of overall juice sales. Real Activ orange carrot juice, India's first packaged fruit + vegetable juice, is a combination of juicy oranges and sweet carrots. Real juices are offered in hygienic double seal spill proof caps in Tetrapak packaging. Once packed, the 6-layer Tetrapak carton helps retain the freshness of the juice for a longer period of time, thus maintaining the taste and nutrition of the juice. The fruits that go into the juices are sourced from the best sources across the world, the company claims. According to the company Coolers has been launched with an investment of Rs12 crore, into research into consumer needs and development of processing capabilities and parameters on the other.
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SURYA FRESH FOODS
Surya Foods & Agro Pvt. Ltd., the maker of Priya Gold biscuits has entered the packaged juice market under the brand name ‗Fresh Gold‘ in six flavours with an investment of Rs. 250mn in may‘05.
AN OVERVIEW
The fruit drink market is around 250 million bottles or packs per year, in value terms it is around Rs. 4,500 Million, whereas the ex isting packaged fruit juice market is 20 million litres valued at around Rs. 1,000 Million per annum.
There are only five major players (Berri, Enkay Foods, Dabur, NOGA and Tropicana ) in juice sector and this provides opportunities for Canadian companies to enter the Indian food market. Other factors, which are likely to stimulate growth in this market, are the increasing health consciousness among the Indian consumers and increase in per capita income.
The focus on appearance has a lot to do with the new health consciousness, which has implications for the growth of low-fat/low-sugar foods. Consumers who want to include health and wellness in their foods in a convenient manner. There is growing
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______________________________________________________________________ awareness about health issues among consumers and as education about the benefits of health products increases, there is bound to be growing demand for these products.
Lately Indian Companies like Dabur and Enkay Foods and multinationals like Tropicana and Berri Ltd of Australia are becoming a ggressive in the juice market.
Tropicana Beverages Co has reported a steady growth pattern for its internationally acclaimed orange juice drink, Tropicana, in the Indian market.
Even when the fruit juice/nectar market is projected to grow at a scorching pace of 40 per cent, a study has found that a whopping 86 per cent of the fruit juice market is still lying untapped.
Perhaps the most enigmatic market is the juice segment, simultaneously disappointing and impressive.
The Rs 8,000 crore business dominated by global leaders and arch-rivals Coke and Pepsi, both of whom are losing money in the country. Moreover, as in developed markets, rising prosperity and greater health consciousness are bound to go in tandem with a shift in tastes, away from carbonated drinks into fruit juices.
The increased demand of health drinks has led to an increase in the number of sizes, shapes and even printing technology innovations, besides the obvious one of ensuring improved product taste and quality. Manufacturers are getting more aggressive by offering new products to consumers. Companies like Dabur, with their juice drink, 27
______________________________________________________ ___________________________ ___________________________________________ ________________ Coolers, have entered the segment. Pepsi has recently launched a variety of products in the half litre category along with new fruit mixes. Other players like Godrej have redone their designs to make their packages more attractive.
Fruit Juice Demand of India's Institutional Sectors
Fruit juices are becoming popular food item at breakfast tables in Indian homes as well as in hotels. Currently in luxury hotels freshly prepared juices are common whereas economy hotels are using canned juices. Institutional and hospitality sector accounts for more than 60% of packaged juice market.
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DIFFERENT KINDS OF PACKAGING AVAILABLE IN FRUIT JUICES:-
TETRA PACK
PET BOTTLE: Healthier living has resulted in a growing demand for PET bottles in the bottled water sector. Similarly, a significant shift away from loose unbranded low-quality cooking oil has translated into increase in demand for PET and HDPE bottles. More and more consumers are also realising the need for nutritive drinks, showing a preference for juice drinks, 100% juices, milk drinks against carbonates or concentrates, thereby pushing up demand for liquid cartons.
LIQUID CARTONS: Indians of all ages are becoming health and calorie conscious, showing a preference for healthy beverages like fruit/vegetable juices that contain no preservatives, no colour and no flavour additives. Moreover, in an effort to differentiate the image of juice drinks away from carbonates, these products were introduced in liquid cartons.
Liquid cartons are being favoured since the packaging allows long shelf life, allows preservation of the original taste and flavour and also allows the juices to be stored without refrigeration. Liquid cartons also make it possible to transport the perishable products across long distances, and juices of seasonal fruits can be
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______________________________________________________ ___________________________ ___________________________________________ ________________ made available to the consumer throughout the year. Therefore, the growth rate of liquid cartons has been impressive during the review period, and is expected to grow further in the coming years.
TARGET MARKET
Upper middle class
House wives
Health-conscious, young executives
Teenagers
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OTHER DRINKS AVAILABLE IN THE MARKET
TEA AND COFFEE:
India has been traditionally a large tea producing country and coupled with the perceived benefits of tea consumption, it is no surprise that the beverage retains its popularity rankings throughout the years.
But tea has been losing out to new-generations drinks such as fruit juices and soft drinks, even in traditional tea-drinking markets such as the UK, Ireland, and Japan
There has been tremendous expansion in coffee drinking experiences and this has stimulated associated rise in coffee consumption at home. That said, while coffee parlours are increasingly found throughout the country, cou ntry, it is South So uth India that accounts for an overwhelming proportion of home consumption of coffee brewing and drinking.
Other hot drinks, comprising major brands like GlaxoSmithKline Consumer Healthcare's Horlicks and Boost as well as Cadbury's Bournvita continued to be star performers in 2004, growing at nearly 6% in both volume and current value terms over 2003. This will represent a revival of sorts, as many of the brands in other hot drinks had found the going very tough against new products or concepts like fruit juices, carbonates and bottled water.
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______________________________________________________________________ Building on a small base and positively impacted by increasing sophistication and product knowledge, coffee sales are expected to performance of all hot drinks over the forecast period. By contrast, tea and other hot drinks will see extremely watered down as consumers seek to explore with other drink alternatives as the total volume CAGR of hot drinks in India clock just under 3%
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OTHER DRINKS
Under the N-joi brand umbrella, the company plans to roll out half-a-dozen milky-fruity variants, including peach-milk, strawberry-milk, pineapple-milk, bananamilk, and cheekoo-milk. N-joi, currently only in dairy-mango variant, is priced at Rs 15 for a 250-ml pack and Rs 55 for 1-litre pack.
Godrej has launched Sofit Soymilk for the health conscious. Sofit Soymilk made from carefully selected soybeans, is a valuable source of proteins and vitamins. Being low in saturated fat and cholesterol free, is becoming a popular drink. Available in mango, apple, malt and plain flavours, Sofit is sold in Tetrapaks of 200 ml and 1000 ml. The 1000 ml pack is priced at Rs 50. Sofit is made by mixing soymilk with real fruit pulp, to give all the health benefits of soy to the consumers with the refreshing taste of fruits, claims the company. Soymilk is free of lactose wh ich is present in cow/buffalo milk.
COLA WARS
Pepsi also markets an energy drink for the sports personnel, called Gatorade, and a sugar-free Diet Pepsi. Pepsi, in association with Hindustan Lever Ltd (HLL) is planning to launch Lipton iced tea in a couple of months.
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COLA GIVING WAY TO FRUIT JUICES
With Coca-Cola and Pepsi bogged down in a losing publicity battle over pesticide residues in their bottled products, consumers are rediscovering the value of fruit juices and natural thirst-quenchers that are abundantly available.
Ever since the U.S. colas began flooding the markets as the most visible part of the decade-old economic liberalization process, nutritionists have agonized over the dangers posed by "empty calories" in soft drinks. But pushed by relentless advertising campaigns involving top film stars and sports personalities on television and other media, both Pepsi and Coca-Cola have been steadily notching up sales to well over six million bottles annually.
People are sensitized to the serious problem of pesticides contaminating drinking water and the environment, but the issues like "empty calories" and the "chip-and-cola" diet that are relatively new to the country.
The switch from colas to fresh fruit juice is easy given that India is among the world's biggest fruit juice producers. It has an annual output of around 50 million tonnes, although the packaging industry is still lagging and lacks the technology of the advanced countries.
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PRIMARY RESEARCH
We have calculated frequencies for all the questions to have a general idea about the tastes and preferences of the respondents. We have also shown frequencies in the form in the of pie charts. The color in the pie charts which do not indicate anything are those questions for which people have not responded.
35
______________________________________________________________________
PIE CHARTS The frequency tables are as follows:
Q1. Do you prefer packaged fruit juices to other aerated drinks?
Valid
Cumulative
Percent
Percent
Frequency
Percent
368
78.6
78.6
78.6
No
100
21.4
21.4
100.0
Total
468
100.0
100.0
Valid Yes
Do u prefer packaged fruit juices to other aerated drinks?
Yes No
36
______________________________________________________________________ Q2. Why do you prefer packaged fruit juices?
Frequency Valid
Percent
Valid
Cumulative
Percent
Percent
24
5.1
5.1
5.1
112
23.9
23.9
29.1
99
21.2
21.2
50.2
103
22.0
22.0
72.2
low fat/ low sugar
73
15.6
15.6
87.8
convenience
57
12.2
12.2
100.0
468
100.0
100.0
Taste nutritional value Freshness
Total
Why do u prefer packaged fruit juices?
taste nutritional value freshness low fat/ low sugar convenience
37
______________________________________________________________________ Q3. How often do you buy packaged fruit juices?
Valid
Valid
Cumulative
Percent
Percent
Frequency
Percent
everyday
114
24.4
24.4
24.4
once in a week
163
34.8
34.8
59.2
once in a month
108
23.1
23.1
82.3
hardly
83
17.7
17.7
100.0
Total
468
100.0
100.0
how often do u buy packaged fruit juices?
everyday once in a week once in a month hardly
38
______________________________________________________________________ Q4. Do you prefer packaged fruit juices to fresh fruit juices ?
Valid
Cumulative
Percent
Percent
Frequency
Percent
Valid yes
255
54.5
54.5
54.5
No
213
45.5
45.5
100.0
Total
468
100.0
100.0
Do u prefer packaged fruit juices to fresh fruit juices ?
yes no
39
______________________________________________________________________ Q5. What factors influence u to buy packaged fruit juice?
Valid
Valid
Cumulative
Percent
Percent
Frequency
Percent
107
22.9
22.9
22.9
98
20.9
20.9
43.8
different flavours
148
31.6
31.6
75.4
easy storage
115
24.6
24.6
100.0
Total
468
100.0
100.0
round the year availabilty convenience
What factors influence u to buy packaged fruit juice?
round the year availabilty convenience different flavours easy storage
40
______________________________________________________________________ Q6. Why do you prefer fresh fruit juices?
Valid
Valid
Cumulative
Percent
Percent
Frequency
Percent
110
23.5
23.5
23.5
customized flavours
52
11.1
11.1
34.6
price
74
15.8
15.8
50.4
136
29.1
29.1
79.5
96
20.5
20.5
100.0
468
100.0
100.0
taste
freshness no artificial flavours Total
Why do u prefer fresh fruit juices?
taste customized flavours price freshness no artificial flavours
41
______________________________________________________________________ Q7.1 Are you aware of Real
Valid
Cumulative
Percent
Percent
Frequency
Percent
Valid yes
440
94.0
94.0
94.0
No
28
6.0
6.0
100.0
468
100.0
100.0
Total
are u aware of Real
yes no
42
______________________________________________________________________ Q7.2 Are u aware of Frooti
Valid
Cumulative
Percent
Percent
Frequency
Percent
Valid yes
397
84.8
84.8
84.8
No
71
15.2
15.2
100.0
468
100.0
100.0
Total
are u aware of Frooti
yes no
43
______________________________________________________________________ Q7.3 Are you aware of Tropicana
Valid
Cumulative
Percent
Percent
Frequency
Percent
333
71.2
71.2
71.2
no
135
28.8
28.8
100.0
Total
468
100.0
100.0
Valid yes
are u aware of Tropicana
yes no
44
______________________________________________________________________ Q 7.4 Are you aware of Jumpin
Valid
Cumulative
Percent
Percent
Frequency
Percent
158
33.8
33.8
33.8
no
310
66.2
66.2
100.0
Total
468
100.0
100.0
Valid yes
are u aware of Jumpin
yes no
45
______________________________________________________________________ Q 7.5 Are you aware of Xs
Valid
Cumulative
Percent
Percent
Frequency
Percent
243
51.9
51.9
51.9
no
225
48.1
48.1
100.0
Total
468
100.0
100.0
Valid yes
are u aware of Xs
yes no
46
______________________________________________________________________ Q7.6 Are you aware of Safal.
Valid
Cumulative
Percent
Percent
Frequency
Percent
234
50.0
50.0
50.0
no
234
50.0
50.0
100.0
Total
468
100.0
100.0
Valid yes
are u aware of Safal
yes no
47
______________________________________________________________________ Q7.7 Are you aware of Slice
Valid
Cumulative
Percent
Percent
Frequency
Percent
110
23.5
23.5
23.5
no
358
76.5
76.5
100.0
Total
468
100.0
100.0
Valid yes
are u aware of Slice
yes no
48
______________________________________________________________________ Q8. Which brand do you prefer the most among the following?
Valid
Valid
Cumulative
Percent
Percent
Frequency
Percent
frooti
121
25.9
25.9
25.9
real
125
26.7
26.7
52.6
tropicana
128
27.4
27.4
79.9
jumpin
25
5.3
5.3
85.3
safal
54
11.5
11.5
96.8
Godrej's Xs
15
3.2
3.2
100.0
468
100.0
100.0
Total
Which brand do u prefer the mosg among the following?
frooti real tropicana jumpin safal Godrej's Xs
49
______________________________________________________________________ Q9. Why do you prefer the above marked brand?
Frequency Valid
Percent
Valid
Cumulative
Percent
Percent
taste
148
31.6
31.6
31.6
price
135
28.8
28.8
60.5
flavors
101
21.6
21.6
82.1
84
17.9
17.9
100.0
468
100.0
100.0
availabil ity Total
Why do u prefer the above marked brand ?
taste price flavors availability
50
______________________________________________________________________
CROSSTAB
We have brought out the relation between various factors with the help of CROSSTAB considering two questions at a time.
First, We have brought out the relation between Q1 & Q3 i.e. people who prefer fruit juices over other aerated drinks, how often do they buy it and vice versa.
Do you prefer packaged fruit juices to other aerated drinks? * how often do u buy packaged fruit juices?
Case Processing Summary
Cases Valid N
Missing
Percent
N
Total
Percent
N
Percent
Do u prefer packaged fruit juices to other aerated drinks? * how
468
100.0%
often do u buy packaged fruit juices?
51
0
.0%
468
100.0%
______________________________________________________________________ how often do u buy packaged fruit juices? once in a once in a everyday Do u prefer
Yes
week
96
130
month 86
hardly 56
Total 368
Do you prefer packaged fruit juices to other aerated drinks? * how often do u buy packaged fruit juices?
Cross tabulation
Count
52
______________________________________________________________________ packaged
No
fruit juices to other
18
33
22
27
100
114
163
108
83
468
aerated drinks? Total
Second, With the same Q1 we have also analyzed the relation with Q2, i.e. people who prefer packaged fruit juices over other aerated drinks, why do they prefer the packaged juices.
Case Processing Summary
Cases Valid N
Missing
Percent
N
Total
Percent
N
Percent
Do u prefer packaged fruit juices to fresh fruit juices ?
468
100.0%
* What factors influence u to buy
53
0
.0%
468
100.0%
______________________________________________________________________ packaged fruit juice?
Do you prefer packaged fruit juices to fresh fruit juices ? * What factors influence u to buy packaged fruit juice?
Cross tabulation
Count
What factors influence u to buy packaged fruit juice? round the year
convenienc
different
easy
availability
e
flavors
storage
54
Total
______________________________________________________________________ Do u prefer
Yes
packaged
No
45
58
87
65
255
62
40
61
50
213
107
98
148
115
468
fruit juices to fresh fruit juices ? Total
Third, we have related questions 4 & 5 trying to analyze as to why people prefer packaged fruit juices over fresh fruit juices.
Case Processing Summary
Cases Valid N
Missing
Percent
N
Total
Percent
N
Percent
Do u prefer packaged fruit juices
468
100.0%
to fresh fruit juices ?
55
0
.0%
468
100.0%
______________________________________________________________________ * What factors influence u to buy packaged fruit juice?
Do you prefer packaged fruit juices to fresh fruit juices ? * What factors influence u to buy packaged fruit juice?
Cross tabulation
Count What factors influence u to buy packaged fruit juice? round the year
convenienc
different
easy
availabilty
e
flavours
storage
56
Total
______________________________________________________________________ Do u prefer
yes
packaged
no
45
58
87
65
255
62
40
61
50
213
107
98
148
115
468
fruit juices to fresh fruit juices ? Total
Fourth, moving further with the questionnaire we have tried to analyze which brand do people prefer and why do they prefer the following brand. For that we have taken Q8 & Q9.
Case Processing Summary
Cases Valid N
Missing
Percent
N
Total
Percent
N
Percent
Which brand do u 468
100.0%
prefer the mosg
57
0
.0%
468
100.0%
______________________________________________________________________ among the following? * Why do u prefer the above marked brand ?
Which brand do you prefer the most among the following? * Why do u prefer the above marked brand ?
Cross tabulation
Count Why do u prefer the above marked brand ? availabili taste Which
Frooti
price
45
41 58
flavors 19
ty
Total 16
121
______________________________________________________________________ brand do u
Real
53
33
27
12
125
prefer the
tropicana
29
28
37
34
128
mosg
Jumpin
3
9
5
8
25
among the
Safal
15
18
10
11
54
following?
Godrej's 3
6
3
3
15
148
135
101
84
468
Xs Total
This table shows us how many people of the total sample prefer each brand and also why do they prefer each brand. For eg. 45 people out of 468 prefer Frooti because of its taste. Similarly, 34 people out 468 prefer Tropicana because of its
59
______________________________________________________________________
DATA ANALYSIS
Based on the type of data collected and the target segment with the appropriate statistical methods, inference should be made. The response set of one variable is compared with another set of variable to ensure a detailed analysis of data. We have used the SPSS 12.0 software to analyze our data accurately. After the respondents had filled in the questionnaires, the data was entered into the software and the analysis was made thereby.
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______________________________________________________________________
FIELD WORK
Fieldwork plays an important role in collecting the data. As our sample size was determined to be 450 and we were a 3-member team, we decided to divide the work equally.
Some important points which each member kept in mind while doing the fieldwork:
To make the respondents comfortable before questioning him by introducing our selves as students of and ensuring the respondent that all information collected is only for academic purpose and will be kept confidential
Ensure that we fill the questionnaires our selves
Not to lead a person into any preconceived notion
Not to influence the respondents answers in any way/form.
Use simple language, so that the technical language does not intimidate the respondent. We conducted a exploratory research at Delhi, Agra , and Noida.
61
______________________________________________________________________
RESEARCH FINDINGS
In our analysis we have concluded the following things from each question
Q1. 78.6% of the total respondents prefer fruit juices to other aerated drinks. This shows
that there is great potential in the market for fruit juices.
Q2. The analysis of this question reveals that taste is the main factor because of which
people prefer packaged fruit juices over other aerated drinks.
Q3. 34..8% of the respondents buy the packaged fruit juices at least once in a week. This
again shows that there is a great demand for fruit juices in the market. However, there are large number of people who buy fruit juices either daily or once in a week.
Q4. This question also shows us positive results for fruit juices as the majority i.e. 54.5%
of the respondents prefers packaged fruit juices to fresh fruit juices.
Q5. With this question we realized the importance of packaged fruit juices to fresh fruit
juices i.e. they prefer packaged fruit juice because of different flavors and easy storage mainly. However, some people are also influenced by its round the year availability quality.
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______________________________________________________________________ Q6. In this question people revealed the secret of preferring the fresh fruit juices over
packaged ones i.e. because of its freshness.
Q7. We introduced the this question to know the brand awareness among the people and
this question has revealed that 94% people know about Real, 84.8% people know about Frooti, 71.2% people know about Tropicana, 33.8% people know about Jumpin, 51.9% people know about Xs, 50% people know about Safal and 23.5% people know about Slice. This clearly shows that Real is the most famous b rand among people.
Q8. This question reveals that most of the people prefer Tropicana followed by Real and
then Frooti.
Q9. This question tell us why do people prefer any specific brand and our research has
shown us that Taste is the most important factor (31.6%) followed b y Price (28.8%)
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______________________________________________________________________
LIMITATIONS IN THE STUDY
ERRORS
1) INTERVIEWER ERROR
There is interviewer bias in the questionnaire method. Open-ended questions can be biased by the interviewer‘s views or probing, as interviewers are guiding the respondent while the questionnaire is being filled out. The attitudes the interviewer revels to the respondent during the interview can greatly affect their level of interest and willingness to answer openly. As interviewers probing and clarifications maximize respondent understanding and yield complete answers, these advantages are offset by the problems of prestige seeking, social desirability and courtesy biases.
2) QUESTIONNAIRE ERROR
The questionnaire designing has to careful so that only required data is concisely reveled and there is no redundant data generated. the questions have to be worded carefully so that the questions are not loaded and does not lead to a bias in the respondents mind.
64
______________________________________________________________________
3) RESPONDENT ERROR
The respondents selected to be interviewed were not always available and willing to co operate also in some cases the respondents were found to not have the knowledge, opinion, attitudes or facts required additionally uninformed response errors and response styles also led to survey error.
4) SAMPLING ERROR
The sample size of our survey is only 450, which cannot help us determine the consumer behavior and preference of the total population. Moreover the sample has been drawn from the NCR region where the disposable income of an individual is very high. It has been observed that REAL is a market leader in the fruit juice industry and most
of the respondents interviewed were more aware of Real fruit juices as compared to other fruit juices available in the market, which led to biasness in the analysis of the survey.
65
______________________________________________________________________
LIMITATION The results of this Study cannot be generalized beyond the context of the fruit juice industry setting, and even within this setting customer satisfying cues may differ in their relative impact on service quality and guest loyalty depending on the nature of the product. The researchers also wish to emphasize that the study deals with only identifying and understanding the current market of fruit juices in India. The present assignment has a complete and accurate database of respondents allowing the evaluation team to randomly sample and draw non-respondents into the study by calling them to orally complete the survey. While administering questionnaires during phase two of the study, the researcher noticed that some sample were very enthusiastic about there and were extremely positive and genuine in there answers where as the some other just ticked even without reading the questions. Some of the people who were part of our sample size, became non- respondents i.e. the questionnaire they filled was incomplete or they were not willing to respond. Sample size was a constraint since it was not representative of the entire target population. People could not remember the price and size of shampoo they use as mentioned in our questionnaire. Therefore interpreting the analysis for these questions was difficult.
66
______________________________________________________________________
CONCLUSION
Indians, by tradition, are fruit eaters' not fruit juice drinkers. At the same time fruit juice concept in India is very old and mainly associated with healthy and nutritious drink both for healthy and sick persons.
So far Indian food market had very limited activity in the fruit based beverage markets but recently juice is becoming the major area of attraction. Of the five brands of 100 percent pure orange juice, namely Tropicana, Real, Safal, and Frooti. The market leader is ‗Real‘, though Tropicana is fast catching up. Sales of all the other brands have increased in the past year.
Nuclear family with high purchasing power, open for new concepts and always short of time is the target consumer segment. Ultimately, the market lies in home consumption of pure juices.
With the market growing at a healthy rate and with changing lifestyles and rising levels of health consciousness among consumers toda y, the demand for healthier products like packaged fruit juice is only going to increase in the times to come.
The existing popular brands of Fruit based beverage are Frooti, Jumpin, Safal and Slice. The famous brands in Juice segment are Tropicana and Real. Other new entrants in the industry are fresh gold.
67
______________________________________________________________________
The branded fruit juice market in India is estimated to be worth Rs 120 crore (Rs 1.2 billion) and the segment is growing at about 30 per cent per annum. The market leader is Dabur's Real Fruit followed by Pepsi's Tropicana.
India is now among the top ten markets for Tropicana worldwide. Significantly India is now an approved source for mango pulp within the Tropicana worldwide system, and can soon emerge as a major sourcing base for other exotic fruits for Tropicana's international market. Which means that if the fruit juice producers work on further development of backward linkages, the pricing issue plaguing this industry can be better tackled. Besides, the industry has already begun to offer packaging solutions to address different price points like a 125 ml pack of fruit drink Maaza from Coca-Cola India at just Rs 5 and a 500 ml Tropicana blend for Rs 25.
Growth in the juices segment is not at the expense of the colas or other carbonated soft drinks. Though it is true that more people are going in for the fruit-based products, there is little cannibalization taking place. It is just that the total market is expanding. A market like India, with per capita consumption as low as six bottles, offers a huge potential to expand.
Consumers are increasingly taking to fruit-based drinks because of a perceived image of them being good for health.
68
______________________________________________________________________ Packaged fruit juices are as much recognised as social drinks now, with dominant consumption being observed in the compan y of family and friends.
As a clear indication that consumers perceive fruit juices as a grocery purchase, 60 per cent of the respondents consume fruit juices at home. While 55 per cent of the respondents consumed 1-litre packs at home, 45 per cent consumed 200-ml packs.
What also made the market work is the fact that tetrapaks offered a solution to provide fruit juice practically fresh and preservative free.
The proliferation of supermarkets and malls in metros and mini-metros (key markets for this category), has also added to the growth story as well. And then there is the income factor.
Consumers perceive best thing is to having a fresh fruit. Convenience and the naturalness is the selling point.
69
______________________________________________________________________
QUESTIONNAIRE
The questionnaire method has come to the more widely used and economical means of data collection. The common factor in all varieties of the questionnaire method is this reliance on verbal responses to questions, written or oral. The researchers found it essential to make sure the questionnaire was easy to read and understand to all spectrum of people in the sample. It was also important that the researchers respect the respondents time and energy hence the questionnaire was designed in such a way, that its administration would not exceed 4-5 minutes. These questionnaires were personally administered. Questionnaire is an important step in formulating a research design. Once the researcher has specified the nature of research design, and determined the scaling procedures, he or she can develop a questionnaire. Objectives of a Questionnaire: The questionnaire had three specific objectives: 1. To be able to translate the information needed into a set of specific questions that the respondents can and will answer. 2. To be able to uplift, motivate and encourage the respondent to become involved in the interview, to cooperate, and to complete the interview. Incomplete interviews have limited usefulness at best. 3. To be able to minimize response errors.
70
______________________________________________________________________
SPECIFIC RESEARCH INSTRUMENTS
The two main research instruments used in this study were exploratory research and questionnaire. Following are the manner in which these two methods were administered.
SCALING TECHNIQUES
71
______________________________________________________________________
Characteristics of Scales:
Description
Order
Distance
Origin
There are four types of scales:
Nominal Scale
Ordinal Scale
Interval Scale
Ratio Scale
1) NOMINAL SCALE Nominal scales are defined as those that use only label; that is, they possess only the characteristic of description. The response does not include any level of intensity. Examples:
Designations as to race, religion
Type of dwelling
Gender
Brand last purchased
Answers that involve yes-no, agree-disagree
Other instance in which descriptors can not b e differentiated except qualitatively
72
______________________________________________________________________
2) SEMANTIC DIFFERENTIAL SCALE:
It is a unique bipolar ordinal scale format that captures a person‘s attitudes or feelings about a given object. This type of scale is unique in its use of bipolar adjectives and adverbs (good/bad, like/dislike, competitive/noncompetitive, helpful/unhelpful, etc.) In semantic differential scale, the respondents are asked to express their feelings about whatever being evaluated by recording their responses on a scale of adjectives (such as strong -- mild), which are paired polar opposites. This is usually a seven-point scale. This scale type is best for identifying a ―perceptual image profile‖ about the object or behavior of concern.
3) CONTINUOUS RATING SCALE:
It is a scale measure that uses a scale point format that presents the respondent with some type of graphic continuum as the set of possible responses to a given question. It is also referred to as graphic rating scale.
The respondents rate the objects by placing a mark at the appropriate position on a line that runs from one extreme of the criterion variable to the other. The respondents are not restricted to selecting from marks previously set by the researcher.
73
______________________________________________________________________ 4) LIKERT SCALE:
It is an ordinal scale format that asks the respondents to indicate the extent to which they agree or disagree with a series of mental belief or behavioral belief statements about a given object. In the likert scale, the matter of choosing opposite adjectives is avoided. Rather, it makes a statement or poses one description (or adjective) for whatever is being evaluated. They are also called ‗summated scales‘ because the scores on the individual items are summed to produce a total score for the respondent. A likert scale usually consists of two parts:
Item part
Evaluative part
The item part is essentially a statement about certain product event or attitude.
\
74
______________________________________________________________________
MEASUREMENT
Measurement can be defined as a standardized process of assigning numbers or other symbols to certain characteristics of the objects of interest. Researchers engage in using the measurement process by assigning either numbers or labels to:
People‘s thoughts, feelings, behaviors, and characteristics.
The features or attributes of objects.
The aspects of concepts / ideas.
Any type of phenomenon or event using specific rules to represent quantities and qualities of the factors being investigated
Measurement process consists of:
Construct development
Scale measurement
The goal of construct development is to precisely identify and what is to be measured, including any dimensionality traits. The goal of scale measurement is to determine how to precisely measure each construct.
Scaling may be considered as an extension of measurement. Scaling involves creating a continuum on which measured objects are located. Scale development is designing 75
______________________________________________________________________ questions to measure the subjective properties of an object. There are several types of scales, each of which possesses different characteristic. The characteristics of a scale determine the scale‘s level of measurement.
We have used ‗nominal scale‘ in the following questions:
Q1. Do you prefer packaged fruit juices to other aerated drinks (soft drinks)?
a. Yes b. No
Q2. Why do you prefer packaged fruit juices?
a. Taste b. Nutritional Value c. Freshness d. Low fat / low sugar e. Convenience
Q3. How often do you buy packaged fruit juices?
a. Everyday b. Once in a week c. Once a month d. Hardly
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______________________________________________________________________
Q4. Do you prefer the packaged fruit juices to fresh fruit juices?
a. Yes b. No
Q5.What factors influence you to purchase packa ged fruit juice?
a. Round the year availability b. Convenience c. Different flavors d. Easy Storage
Q6. Why do you prefer fresh fruit juices?
a. Taste b. Customized flavors c. Price d. Freshness e. No artificial flavors
Q7. Name any 5 brands of packed juices that come to your mind.
(a)__________ (b) __________ (c) __________ (d) __________ (e) __________
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______________________________________________________________________ Q8. Which brands do you prefer the most among the following?
a. Parle Frooti b. Dabur‘s Real c. Tropicana d. Godrej Jumpin Masti e. Mother Dairy Safal f. Godrej XS Q9. Why do you prefer the above marked Brand (brand loyalty)?
a. Taste b. Price c. Flavors d. Availability
Q10. What influences you to buy fruit juice?
a. Advertisement b. Peer Group c. Medical recommendation d. Promotional campaigns (samples, free gifts, discounts on further purchase of the product)
78
______________________________________________________________________ Q11. Do you recall any advertisement for packed fruit juices?
a. Which brand ____________ b. Where did you see it (a) TV
(b) Newspaper
(c) Hoardings
(d) Magazine
c. You liked the above ad because it had (a) Energy
(b) Freshening feeling
(c) Color
(d) Clear message
(e) Good
Models in the ad We have also used nominal scale for finding demographics of our respondents
Income /Annum:
Below 50,000
Age:
Below 20
Occupation:
Student
50,000-
20-35
Professional
1 lakh
35-50
3 lakh +
50 Above
Businessen
We have used ‗Likert Scale‘ in the following questions:
79
1 lakh-3 lakh
Housewife
______________________________________________________________________ Q12. Please rate the following statements
(a)
(b)
Strongly
Disagree
(c)
(d)
Indifferent
(e)
Agree Strongly
Juices are healthy
-----
-----
-----
-----
-----
Juices are replacing other drinks
-----
-----
-----
-----
-----
(tea, coffee, soft drinks) Juices are value for money
-----
Juices are tasty and refreshing
-----
-----
-----
-----
-----
Fresh juices are better than tetra packed
-----
-----
Once opened, packed juices do not last
-----
-----
Long Packed Juices are expensive
Packed juices contains artificial flavor
-----
-----
-----
-----
----- ---
-----
-----
-----
-----
-----
----
----- --
----------
-----
-----
We have used ‗FACTOR RATING MODEL‘ in the following question:
80
-----
-
______________________________________________________________________
Q13. Rank the following brands based on the following factors (1-lowest and 5-highest)
Factors/brands
Real
Frooti
Tropicana
Price
Quality
Brand name
Availability
Variety
81
Safal
Jumpin
______________________________________________________________________
BIBLIOGRAPHY Kotler, Philip and Gary Armstrong (1999),
Marketing Management (New Meerut: Prentice Hall of India) Kothari, C. R.(1999),
Research Methodology (Meerut: Global Business Press) Magazines:
Business World Business Today India Today
(15 April, 2004) (Collector Edition Vol.1) (16 April, 2005)
Journals:
Indian Journal of Marketing
(May 2005)
The Journal of India management &strategy (July-Sep 05) The Alternative Journal of Management Study & Research
(Aug-Sep 05)
News Paper:
Times of India Economic Times
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