avt project soft copy

A study on the effects of brand associations of AVT Tea among homemakers

1. INTRODUCTION

The research is conducted on the topic “A STUDY ON THE EFFECTS OF

BRAND ASSOCIATIONS OF AVT TEA AMONG HOMEMAKERS” at AVT

NATURAL PRODUCTS LTD, South Vazhakulam. This study is aimed to find out

the effects of the brand associations of AVT Tea which result the brand preference

among homemakers. The study helps to find out the influence of AVT brand

associations and how much the consumers are satisfied with their brand preference of

AVT Tea. The researcher intends to find out how effective is the brand associations

and how it play an important role in increasing the brand preference of AVT Tea

among its customers. The research is done among the consumers of AVT Tea to

know the effectiveness of brand associations and to find out whether steps should be

taken to increase the brand preference.

AVT Natural Products, ranks today as the market leader in India's black tea

industry. The Company commenced its operations in 1972 and within a short span of

time, developed into a global player with over 500 products covering spice oleoresins,

Decaffeinated Tea, instant tea, green tea, essential oils, natural food colours, micro

encapsulated products, sprays dried botanical extracts, health and functional food

ingredients, floral concretes/absolutes and resinoids.

This project was conducted in the company to study the effects of brand

associations of AVT Tea and to assess the satisfaction level of the customers. The

project targets the homemakers as the major users of the AVT Tea products. The

linkages between the brand name, its attributes, and other brands in the marketplace

mean that associated attributes can be unique to the consumer, unique to the brand, or

shared with other brands. Consumers purchase decisions for AVT Tea powders are

always influenced by a number of factors, which lead them to select a particular brand

in preference to others. In this study some attributes are considered as important cues,

which lead consumer to select a particular brand of Tea. This study examines

satisfaction level of the customers in a given population sample. The study on the

effects of brand associations of AVT Tea among customers was studied by way of

market research conducted among the customers.

Jai Bharath school of management studies

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1.1 STATEMENT OF THE PROBLEM

World requirement for hygienic and consistent quality of branded Tea has become

a necessity. Brand associations are not “reasons-to-buy” but provide acquaintance and

differentiation that is not replicable. Purchasing decisions are the behavioural outcome

that precedes differentiation between several alternatives is the purchasing decision; a

subsequent outcome of consumer preferences. Preferences facilitate consumers’ choice

by enhancing their intentions towards the favoured brand.

Here, homemakers are the prospective customers of AVT tea. The responses from

the non-users of the products were quite favorable showing positive demand for the

products in the future.

Thus to meet these requirements, AVT Natural Products has consciously put

forward a strategy to build the brand associations. In order to survive a company needs

to view its brand associations in the same way as views its end users. It is essential to

find out the effectiveness of brand associations, which have a direct impact on the

brand preference of an organization.

PROBLEM FORMULATION:

The purpose of the research reported here was to test empirically a

conceptualization of brand associations that consists of three dimensions: brand image,

brand attitude and perceived quality. A better understanding of brand associations is

needed to facilitate further theoretical development and practical measurement of the

construct. Homemakers are considered to be the potential customers and they expressed

their satisfaction towards using the products. Hence the study focuses on the responses

of homemakers as targeted consumers of branded AVT Tea products.

Findings confirm the efficiency of the brand image protocol and indicate that

brand associations differ across brands and product categories. The latter finding

supports the conclusion that brand associations for different products should be

measured using different items. As predicted, dimensionality of brand associations was

found to be influenced by brand familiarity.


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Framework of the study

VARIABLES: A variable is a measurable characteristic that varies. It may

change from group to group, person to person, or even within one person over time.

Statements about association are usually stated in terms of a relationship between an

independent and a dependent variable. The idea is that one variable is the effect of

another variable or, to say it another way, that one variable precedes and/or causes

another.

The dependent variable is the variable to be explained (the ‘effect”). For

example, if the independent variable is the brand associations of AVT Tea, then the

dependent variable might be brand preference among consumers. In other words, the

variation in the dependent variable depends on the variation in the independent

variable.

Fig 1.1: Framework of the study

(Source: primary data)


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Intervening variable

Taste and preferences of the home makers

Change in Prices of rival products Income of the customers

Brand associations

(Cause variable)

Brand Preference

(Effect variable)

Moderating variables

Perceived quality Brand image Brand attitude


The independent variable is the variable expected to account for (the “cause”

of) the dependent variable. Because of the limitations in inferring cause-and-effect

relationships in the social sciences, be cautious about using the terms cause and

effect when examining relationships between variables. However, using the terms

independent and dependent variables is still appropriate even when this relationship

is not articulated in terms of direct cause and effect. Here are a few guidelines that

may help to identify the independent and dependent variables:

(1) The dependent variable is always the property which is trying to explain; it is always the object of the research.

(2) The independent variable usually occurs earlier in time than the dependent variable.

(3) The independent variable is often seen influencing, directly or indirectly, the dependent variable.

Intervening variables: refer to abstract processes that are not directly observable

but that link the independent and dependent variables. The following are Mediating

variables: Taste and preferences of the home makers, Change in Prices of rival

products, Income of the customers etc.

Moderator variables: affect the relationship between the independent and

dependent variables by modifying the effect of the intervening variable(s). In this

framework the moderating variables are Perceived quality, Brand image, Brand

attitude

PROBLEM IDENTIFICATION:

The current dynamic and complex business environment makes it difficult for the

managers to obtain the necessary information by themselves, without the help of

researchers. It was important from the company’s point of view to understand the

acceptance of the product in the market and their feedback on the product which was

found out from the market research. Also the study was initiated to spread awareness

among those who were unaware this particular product range of the company. Thus the

study had an impact on the company’s understanding about its premium range of

products.


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1.2 OBJECTIVES OF THE STUDY

Primary objective: To study the relationship between the influence of brand

associations of AVT Tea and brand preference among homemakers.

Secondary Objectives

To find out the relationship between perceived quality of AVT Tea and quantity of

purchase among homemakers.

To understand the association between overall excellence of AVT Tea products and

its brand loyalty among homemakers.

1.3 SIGNIFICANCE OF THE STUDY

AVT Natural Products has an inevitable part of business & management

strategies. The Project study is very important for knowing the following.

To study the effects of brand associations of AVT Tea.

To familiarize with the brand associations of AVT Tea.

To understand the brand preference of the company products among customers.

1.4 TESTING OF HYPOTHESIS:

Chi-square test and correlation test have been employed to find out the hypothesis of the study. The hypotheses are given below.

1) Ho: There is no relationship between brand associations and brand preference

among homemakers

Ha: There is a relationship between brand associations and brand preference among

homemakers

2) Ho: There is no relationship between perceived quality of AVT Tea products and

quantity of purchase among homemakers.

Ha: There is a relationship between perceived quality of AVT Tea products and


3) Ho: There is no relationship between overall excellence of AVT Tea products and

brand loyalty of AVT Tea among home makers.

Ha: There is a relationship between overall excellence of AVT Tea products and



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1.5 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may

be understood as a science of studying how research is done scientifically. The

researcher studies the various steps that are generally adopted by a researcher in

studying his research problem along with the logic behind them. It is necessary for the

researcher to know not only the research methods/techniques but also the methodology.

Researchers also need to understand the assumptions underlying various techniques and

they need to know the criteria by which they can decide that certain techniques and

procedures will be applicable to certain problems and others will not. All this means

that it is necessary for the researcher to design his methodology for his problem as the

same may differ from problem to problem. Research methodology includes various

research methods such as type of research, source of data collection, sampling frame,

population etc.

1.5.1 Data Collection

Data Collection Method:

Questionnaires were sent to the selected customers of the AVT tea products. The

requisite data for the study were collected through structured questionnaire and Personal

interview

. Primary Data:

Primary data are collected through direct interview, questionnaire, interaction and

observation. The primary data is collected from the customers of the company.

Respondents include both the current and prospective customers of AVT products.

Secondary Data:

The secondary data are those which have already been collected by someone

and which have already been passed through some statistical process. Secondary data

are collected from

company records

magazines

journals

Internet.


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1.5.2 RESEARCH DESIGN

The research design used for this study is descriptive in nature. Descriptive research

studies are those studies concerned with describing the characteristics of a particular

individual or a group to prove the outcome. Chi-square test and correlation test have been

employed to find out the hypothesis of the study. It is conducted among the customers of

AVT Natural Products who are the current and prospective customers of the AVT Tea.

The study was based on responses given by the customers of AVT Natural Products.

1.5.3 SAMPLING DESIGN

i. Population:

All the items under consideration in any field of inquiry constitute a Universe or

Population. The group of individuals under study is known as population or universe.

Therefore, the universe is the aggregate of all the units to be studied to any field of

inquiry. In this study the population of the homemakers of Ernakulum district is taken.

ii. Sample:

Sample size refers to the number of items to be selected from the universe to a

sample. Here the sample size taken for the study is 100.

iii. Sample unit:

Every single customer that comes under the list of 100 customers allotted by the

company comes under this list.

1.5.4 Tool for Analysis

A structured questionnaire was set with 22 questions asking the respondents to think

of the brand associations of the AVT Tea products and their brand preference on the

products. After collection of data from the homemakers each question were

classified and tabulated in the following statistical tabulation methods.

Simple Percentage Analysis

Chi-Square Test

Correlation test

1.5.5 Period Of Study

The study was carried out for a period from May 2nd 2015 to 2nd July 2015.


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1.6 LIMITATION OF THE STUDY

Cannot ensure the accuracy and reliability of data.

The quality of the information highly dependent on the knowledge of the

respondents.

The customers of AVT products are limited to potential customers as home

makers

There may be bias in answering certain questions by the respondents.

1.7 SCOPE FOR FUTURE STUDY

The study help to analyze the preference level of AVT Tea products as well as the

reach of the product attributes among potential customers. Thus the study would be

incidental in bringing out necessary modifications for further brand associations into

the brand preference.

As the AVT Tea of products have the advantage of ‘backward integration’ for

quality tea products, this will have a major importance in the coming years due

to the fact that customers are becoming more health conscious and the

authorities of every country have make it a point of their responsibility to sell

off only quality tea products that would cater to requirements.

The market competition of AVT tea products is very high. Therefore it is

important for the company to have a clear cut idea of this because it has a major

opportunity around the globe.

Though the opportunity is very huge, the scope of the study had to be limited

taking just a few of the customers who are representative of the company.

The study intended to attain a firsthand experience of the overall running of an

organization. It helps to understand the working conditions of the organization; it’s

financial and market position. A detailed analysis of each of the activities performed by

the departments is beyond the scope of the study. It provides a chance to see practical

constraints faced by the managers while putting theory in to practice. This research also

helps to identify the scope of brand associations which have influence on the brand

preference of customers


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1.8 CHAPTER SCHEME

Chapter 1: Introduction

This chapter gives a clear picture about the research. It includes the introduction of

the study, statement of problem, objectives of the study, scope of the study, limitation

of the study.

Chapter 2: Theoretical background and Literature Review

In this chapter the researcher describes the theoretical and literature review of the

study.

Chapter 3: Industry Profile

This chapter gives a clear picture about the industry, its world, Indian scenario. It

also includes the company profile.

Chapter 4: Data Analysis and Interpretation

This chapter deals with the analysis and interpretation of the data collected. The

analysis and interpretation are presented using tables and graphs.

It contains research methodology which includes research design, data collection,

sampling and statistical design

Chapter 5: Findings, Suggestions and Conclusion

It includes the point wise description of the results found out from the study

conducted.

This final part of the project includes the conclusion of the entire study and the

scope for further study.


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2.1 LITERATURE REVIEW

Literature review includes the theoretical and methodological contribution to a

particular topic. The literature review about Cost Reduction and Control will give a

brief idea about the studies conducted on this topic. From those studies the

researcher will get a brief idea about how the study will be conducted by others and

how the researcher should conduct the study. In this chapter the study conducted by

various persons are included. And the theoretical review about the topic will give a

good knowledge about the topic. By understanding these details the researcher will

be getting an idea about on which part the study is to be conducted.

A literature review is a written document that presents a logically argued case

founded on a comprehensive understanding of the current state of knowledge about

a topic of study. This case establishes a convincing thesis to answer a study's

question. Generally, the purpose of a review is to analyze critically a segment of a

published body of knowledge through summary, classification, and comparison of

prior research studies, reviews of literature, and theoretical articles.

BRAND ASSOCIATIONS

According to Aaker (1991), brand associations are the category of a brand’s

assets and liabilities that include anything “linked” in memory to a brand (Aaker,

1991). Keller (1998) defines brand associations as informational nodes linked to the

brand nodes in memory that contain the meaning of the brand for consumers. Brand

associations are important to marketers and to consumers. Marketers use brand

associations to differentiate, position, and extend brands, to create positive attitudes

and feelings toward brands, and to suggest attributes or benefits of purchasing or

using a specific brand.

Consumers use brand associations to help process, organize, and retrieve

information in memory and to aid them in making purchase decisions (Aaker, 1991,

pp. 109-13). While several research efforts have explored specific elements of brand

associations. No research has been reported that combined these elements in the

same study in order to measure how they are interrelated.

Jai Bharath school of management studies 10


Aaker (1991) defines brand associations as anything linked in memory to a

brand. Three related constructs that are, by definition, linked in memory to a brand,

and which have been researched conceptually and measured empirically, are brand

image, brand attitude, and perceived quality. We selected these three constructs as

possible dimensions or indicators of brand associations in our conceptual model. Of

the many possible components of brand associations we could have chosen,

We selected these three constructs because they:

1. They are the three most commonly cited consumer brand perceptions in the

empirical marketing literature;

2. They have established, reliable, published measures in the literature; and

3. They are three dimensions discussed frequently in prior conceptual research

We conceptualize brand image (functional and symbolic perceptions), brand

attitude (overall evaluation of a brand), and perceived quality (judgments of overall

superiority) as possible dimensions of brand associations.

Related journals

“The effects of brand associations on consumer response''. Journal of

consumer marketing, VOL. 18 NO. 5 2001, pp. 410-425, # MCB university

press, 0736-3761

Authors: A. BeleÂn del RõÂo, Rodolfo VaÂzquez, VõÂctor Iglesias:

Faculties of Ciencias Economicas, University of Oviedo, Spain

An Evaluation of Brands Image, Product Attributes and Perceived

Quality of a Selected Consumer Non-durable Product

Journal of Administration and Management Review Volume 19, No.2, August

2007

Author: Md. Enayet Hossain, Assistant Professor, Marketing Department,

Rajasthan University, Bangladesh.

A Study of brand Preference: An Experiential View: A Thesis Submitted

for the degree of Doctor of Philosophy by Reham Shawky Ebrahim, Brunel

Business School, April 2013



BRAND PREFERENCE

Brand preferences represent consumer dispositions to favour a particular brand

(Overby and Lee, 2006). It refers to the behavioural tendencies reflecting the extent

to which consumers favour one brand over another (Hellier et al., 2003; Zajonc and

Markus, 1980). Brand preference is close to reality in terms of reflecting consumer

evaluation of brands. In the marketplace, consumers often face situations of

selecting from several options (Dhar, 1999).

Here summarize major contributions of significant studies and articles to the

body of knowledge under review, maintained the focus established in the

introduction. Evaluated the current "state of the art" for the body of knowledge

reviewed, pointing out major methodological flaws or gaps in research,

inconsistencies in theory and findings, and areas or issues pertinent to future study.

The role of experience is limited to the impact of its type on shifting preference

level. Most of prior studies are partial and focusing on one or two antecedents of

brand preferences. In addition to these drawbacks, the studies also ignore

consequences determining the consumer purchase decisions. Based on these

limitations in the literature, a lack of understanding of how consumers develop their

brand preferences was identified.

Accordingly, the aim of this study is to develop a model that provides an

understanding of how brand associations and brand experiences determine brand

preferences and to investigate its impact on brand repurchase intentions. In this

model, the brand knowledge is defined by attribute-based beliefs, referring to

consumers’ salient beliefs about the brand intrinsic cues, and non-attribute beliefs,

reflected in the price, appearance, brand personality, and self-congruity. Therefore,

the relative importance of brand associations’ factors contributing to brand

preference is determined. Furthermore, the model addresses the interactions between

the brand knowledge and brand experience in shaping brand preference. Thus,

addressing how the associations reflect embedded value in the brand offerings

influencing consumer preferences.



The findings confirm that brand associations are the key sources of brand

preferences. In addition, all the factors of brand associations have a direct positive

impact on brand preferences.

Prior Studies on Brand Preference

The prior studies on brand preferences can be divided into two categories:

consumer-oriented factors and brand-oriented factors.

The first group of studies focuses on consumer-related factors. Consumer

characteristics can be classified according to cultural, social, psychological and

personal differences. Among these characteristics, self-concept is the only variable that

plays a significant role in determining consumer preferences (Dolich, 1969; Green et

al., 1969; Grubb and Grathwohl; 1967; Grubb and Stern, 1971; Hong and Zinkhan,

1995; Hughes, 1976; Ross, 1971; Sirgy, 1982).

Moreover, several studies findings reveal the significant impact of consumer

lifestyle on brand preferences (Andreasen, 1984; Lee et al., 2007; Mathur et al., 2008;

2003; Orth et al., 2004). According to these studies, consumers cope with changes in

events or status by changing his lifestyle and preferences. The changes made depend on

the level of stress of the event experienced by consumer. Thus, the change in

preferences is a consequence of coping behaviour and not the event itself (Mathur et

al., 2003).

Even more, the consumer demographics are confirmed in most studies to have

significant but low impact on brand preferences (e.g. Bass and Talarzyk, 1972; Jamal

and Goode, 2001). The studies that support the significant impact of gender and age on

consumer preferences are conducted among groups of young consumers (Hogg et al.,

1998; Lambert, 2008; Moschis et al., 1984). Also, Perez et al. (2011) supports the

homogeneity of preferences across the inter-generation since preferences are

transferred from parents to their children. These results contradict the fact that

consumer preferences are heterogeneous (Horsky et al., 2006) and that each consumer

has an ideal brand that fit his characteristics (Schmitt and Schultz, 1995).



The second group of studies focuses on brand-related factors. This category

focuses on the impact of brand attributes on developing consumer preferences for

brands. Brand preference is the result of the brand added-value acquired through the

different responses of consumers to the brand attributes. The brand value can be

endowed by the brand arising from its related attributes and non-related attributes.

Therefore, it represents consumer different responses and the evaluation of brand

functional and symbolic attributes (Farquhar, 1990; Park and Srinivasan, 1994).

Prior work has demonstrated the positive and significant impact of brand equity,

which improves consumers’ perceptions of the brand (Erdem and Swait, 1998) in the

service industry (Chang and Liu, 2009) and products (Tolba and Hassan, 2009). The

definition of brand equity, as the strength of association between the brand and the

different types of evaluation stored in their memory, is relevant in studying consumer

behaviour (Farquhar, 1990). The impact of brand equity on consumer preferences is

measured at the aggregate level without investigating the impact of its different

dimensions (Chang and Liu, 2009; Cobb-Walgren et al., 1995).

In a recent study, Tolba and Hassan (2009) examine the impact of different

dimensions forming brand equity: knowledge equity, attitudinal equity and relationship

equity on brand preference.

The results support the significant impact of relationship equity, consumers’

experiences, on brand preferences of users. For non-users, their preferences of brands

are affected by attitudinal equity, functional utility and symbolic image. .

Other prior research focuses on the impact of different types of attribute on brand

preference, especially non-related attributes: price (e.g. Monroe, 1976; Moon and Voss,

2009), appearance (e.g. Creusen and Schoormans, 2005; Creusen and Schoormans,

1998), brand personality (e.g. Kim et al., 2011) and self-congruity (e.g. Hu et al., 2012;

Branaghan and Hildebrand, 2011; Jamal and Al-Marri, 2007). In addition, Sääksjärvi

and Samiee, 2011) demonstrate the significant positive impact of brand image on brand

preference. This retains the importance of the different evaluative aspect of the brand

attributes in consumer preference development.



2.2 THEORETICAL BACKGROUND

Theoretical background is a proposed way of thinking about potentially related

events. Theoretical background contains built in theories; they cannot be simply

reduced to describing a set of observations.

BRAND

The brand is conceptualized as a node in memory, which allows other information

about the brand to be “anchored” to it (Aaker 1991). The conceptualization of a

network of brand associations in memory with brand as a central core has been put

forward by many others (Killer 1993, Holden 1993, Holden & Lutz 1992). A brand that

is not considered cannot be chosen (Baker etal. 1986). Further, the probability of the

brand being chosen is a condition of the number of other brands in the consideration

set. Consumers may employ heuristics (decision rule) to buy only familiar, well-

established brands (Roselius 1971, Jacoby et al. 1977 both cited in Keller 1993). For a

consumer to buy a brand positive attitude must first be made but brand attitude cannot

be formed and intention to buy cannot occur unless brand awareness occurs (Rossister

& Perey, 1991).

Fig 2.1: Brand Equity conceptual model

(Source: journal of contemporary research in business, February 2012 vol 3)


Brand

Power

Brand acceptance

Brand Equity

Customer knowledge

Brand associations

Customer trend

Customer trend

Trust to Brand

Awareness of Brand

Perceived quality

Loyalty to Brand


Although there has not always been agreement on how to measure brand image

(Dobni and Zinkhan, 1990), one generally accepted view is that, consistent with an

associative network memory model, brand image can be defined as perceptions about a

brand as reflected by the cluster of associations that consumers connect to the brand

name in memory. Thus, brand associations are the other informational nodes linked to

the brand node in memory and contain the meaning of the brand for consumers

BRAND ASSOCIATIONS

Brand Associations are not benefits, but are images and symbols associated with a

brand or a brand benefit. Brand association is anything which is deep seated in

customer’s mind about the brand. Brand should be associated with something positive

so that the customers relate your brand to being positive. Brand associations are the

attributes of brand which come into consumers mind when the brand is talked about. It

is related with the implicit and explicit meanings which a consumer relates/associates

with a specific brand name. Brand association can also be defined as the degree to

which a specific product/service is recognized within its product/service class/category.

While choosing a brand name, it is essential that the name chosen should reinforce an

important attribute or benefit association that forms its product positioning.

Brand Associations are not benefits, but are images and symbols associated with a

brand or a brand benefit. Associations are not “reasons-to-buy” but provide

acquaintance and differentiation that’s not replicable. It is relating perceived qualities

of a brand to a known entity. For instance- Hyatt Hotel is associated with luxury and

comfort; BMW is associated with sophistication, fun driving, and superior engineering.

Most popular brand associations are with the owners of brand, such as - Bill Gates and

Microsoft, Reliance and Dhirubhai Ambani.

In line with this criterion, Keller (1993, 1998) classifies brand associations into

three major categories: attributes, benefits and attitudes. Attributes are those descriptive

features that characterize a brand, such as what a consumer thinks the brand is or has

and what is involved with its purchase or consumption. Benefits are the personal value

consumers attach to the brand attributes, that is, what consumers think the brand can do

for them. Brand attitudes are consumers' overall evaluations of a brand.



Fig 2.2: Brand Associations concept

(Source: journal of consumer marketing, vol. 18 no. 5 2001)

BRAND IMAGE:

A brand image is the totality of consumer perceptions about the brand, or how

they see it, which may not coincide with the brand identity. Brand image is defined

as the reasoned or emotional perception consumers attach to specific brands (Dobni

and Zinkhan, 1990). A brand image consists of functional and symbolic brand

beliefs. Brand image associations are largely product category specific and measures

should be customized for the unique characteristics of specific brand categories

(Park and Srinivasan, 1994; Bearden and Etzel, 1982). Brand benefits are the

foundation of brand image. Chiranjeeb (1997) claimed that a brand name itself is the

foundation of brand image. In a broad sense purchase decisions are based almost

solely upon the attitude existing at the time of purchase. The factors which may

prevent consumers from converting their attitudes into intentions and buying

behavior are very numerous and frequent (Wallen dorf, 1979).


Brand associations

Brand Image Perceived Quality Brand attitude

i1 i9i3 i4 i7i6i5 i8i2

Where i1, i2, i3...Etc are the informational nodes of the Brand


BRAND ATTITUDE:

It is one of the pervasive notions in all of the Marketing (Gillbert 1995). Formal

attitudes are learned predispositions to respond to some object in a consistent way. The

response may be favorable or unfavorable (Wallendorf, 1979). Consumers learn these

attitudes over time by being exposed to the object directly or through receiving

information about the object. Our learned attitudes serve as general guides to our overt

behavior with respect to the attitude object, giving rise to a consistently favorable or

unfavorable pattern of response.

PERCEIVED QUALITY:

Perceived quality is defined as the consumer's judgment about a product's overall

excellence or superiority (Zeithaml, 1988; Aaker and Jacobson, 1994). For example,

Sethuraman and Cole (1997) found that perceived quality explains a considerable

portion of the variance in the price premium consumers are willing to pay for national

brands. The perceived quality of products and services of strong brands add value to

consumers' purchase evaluations. We propose that consumers have more highly

developed brand association structures for familiar brands than for less familiar ones,

and hence are more likely to have multi-dimensional brand associations for familiar

brands compared to less- or unfamiliar brands.

Product Attributes:

Product attributes are the benefits of products, and these benefits are the surface

means used in advertisement and promotion offer to connect the brand with a

motivation which influence brand attitude (Rossister, 1987). Nowadays, companies try

to differentiate their products emphasizing some trivial attributes which in a real sense

create no differences from those of its competitors’ or, sometimes they are not actually

used by consumers at all (Chowdhury & Islam 2003). It is evident that product

attributes are most salient to the consumers (Garvin, 1983, 1984). In reality, during the

decision for dealing, it is assumed that consumers not only consider the present value

of the products but also take the future performance or future associated with the

product attributes into consideration (Chowdhury and Islam, 2003).


http://users.freenet.am/~ysuecon/topics/brand/association.htm#73928954


Objectives of Brand Associations

The creation of a brand implies communicating a certain brand image in such a

way that all the firm's target groups link such a brand (and thus the products sold using

its name) with a set of associations. Brand equity research in marketing, as exemplified

by Aaker's (1991, 1996) conceptualization and Keller's (1993, 1998) framework, is

rooted in cognitive psychology and focuses on consumer cognitive processes. Thus,

this view of brand equity proposes that:

The brand creates value for both the consumer and the firm.

The brand provides value to the firm by generating value for the consumers.

Consumers' brand associations are a key element in brand preference formation and management.

The issue of brand equity has emerged as one of the most critical areas for

marketing management. Despite strong interest in the subject, however, to date little

research has been conducted in order to investigate which brand associations have the

strongest effects on consumer behavior. Some of these works only adopt a theoretical

perspective, without performing an empirical test (Keller, 1993, 1998; Teas and

Grapentine, 1996). Moreover, several of the empirical studies made analyze the overall

relation between brand image and consumer response, that is to say, without

considering the different dimensions of brand associations.

The brand associations are status function which expresses the feelings of

admiration and prestige that the consumer may experience upon using the brand

(Solomon, 1999). According to Vigneron and Johnson (1999), this function is based on

five characteristics of the brand:

(1) Symbol of the individual's power and social status;

(2) Reflection of social approval;

(3) Exclusivity or limitation of the offer to a small number of people;

(4) Contribution of emotional experiences; and

(5) Technical superiority.



BRAND PREFERENCE

Consumer brand preference is an essential step in understanding consumer

brand choice; has therefore always received great attention from marketers. Horsky

et al. (2006) demonstrate the importance of incorporating information about brand

preference into the brand choice model. Brand preferences reveal the type of

attributes a brand possesses, to strengthen its position and increase its market share.

Moreover, it forms a critical input in developing a company’s successful brand

strategy, and gives insight for product development. However, the shift to

experiential marketing broadens the role of the brand from a bundle of attributes to

experiences.

Brand preferences reveal the type of attributes a brand possesses, to strengthen

its position and increase its market share. Moreover, it forms a critical input in

developing a company’s successful brand strategy, and gives insight for product

development. However, the shift to experiential marketing broadens the role of the

brand from a bundle of attributes to experiences.

The technological advancement helped increasing the similarities between the

brands attributes and product commoditization. Consequently, consumers cannot

shape their preferences among brands using rational attributes only. They seek the

brand that creates associations; intrigue them in a sensorial, emotional, and creative

way. Companies’ competitiveness in such market has, therefore become

increasingly difficult. Their survival requires building their competitive advantage

by delivering memorable associations, which would influence consumers’ brand

preferences, and consequently stimulate consumers’ purchase decisions.

However, the role of brand personality on brand preference is realized through

brand associations. The findings also support that the impacts of the general brand

attributes and appearance on brand preference are partially mediated by brand

associations. Furthermore, brand preference positively impacts repurchase

intentions.



3.1 INDUSTRY PROFILE

Tea is the oldest and the most widely consumed and the lowest cost beverage in

the world after water. It is considered to be one of the major components of world

beverage market which provides more than 2,000 different types of tea for

consumption. Though several varieties of tea such as green tea and herbal tea are now

becoming popular, by far the most important tea to international trade is black tea. In

the global tea market, China, India, Kenya, and Sri Lanka are the major producers and

also play a major role as exporters of tea, while Russia, U.K., U.S., Pakistan, and

Japan form the major markets for these exports. Consumer awareness of the health

benefits of tea and premium have been the growth drivers of the tea market recently.

In this domain the global tea industry is largely dominated by India, the second

largest producer and one of the largest consumers of tea. India is succeeded China and

followed by Kenya Sri Lanka, Vietnam and Indonesia in the production hierarchy of

countries.

Tea cultivation is not done everywhere and anywhere. Its cultivation is

restricted to certain specific regions in the world due to specific requirements of

climate and soil that suit its cultivation. Among the major tea producing countries that

are located in the continent of Asia are China, India, Sri Lanka are the major

producers. Kenya, Malawi, Rwanda, Tanzania, Uganda are major producers in

African tea growing countries which are located mostly around the tropical regions.

Apart from these regions, certain regions in South America like Argentina and Brazil

produce tea.

Tea in India is introduced by a British national, Robert Bruce who discovered

tea plants mounting in the upper Brahmaputra valley in Assam and neighboring areas

some two hundred years back from today. It was in 1838, Indian tea that was

developed in Assam was sent to the then Great Britain for the first time, for public

sale. Therefore, tea in India is grown primarily in the domains of Assam, West

Bengal, Tamil Nadu and Kerala. Apart from these major regions, tea is also grown in

little quantities in Karnataka, Himachal Pradesh, Tripura, Uttaranchal, Arunachal

Pradesh, Manipur, Sikkim and Meghalaya.



3.1.1 INTERNATIONAL SCENARIO

Tea is one of the most popular and lowest cost beverages in the world and

consumed by a large number of people. Owing to its increasing demand, tea is

considered to be one of the major components of world beverage market. The global

market for hot beverages (coffee and tea) is forecasted to reach US$69.77 billion in

value and 10.57 million tons in volume terms by the year 2015 (GIA, 2011). Tea

cultivation is confined only to certain specific regions of the world due to specific

requirements of climate and soil. Majority of the tea producing countries are located

in the continent of Asia where China, India, Sri Lanka are the major producers.

African tea growing countries are located mostly around the tropical regions where

Kenya, Malawi, Rwanda, Tanzania, Uganda are major producers. Apart from these

regions, some quantities of tea are also being produced in South America

(Argentina, Brazil and others), the Near East (Iran and Turkey) and the CIS (Russia

and Georgia).

Globally, tea is cultivated in 36, 91,938 ha with an annual production of

4066596 thousand Kg (Anonymous, 2010). Over the years, both area and production

has increased substantially along with global trade of tea. Being an agricultural

commodity whose production is bound to fluctuate due to vagaries of nature, the

prevailing differences between production and demand is well below any reasonable

limits. In this article, an attempt has been made to project the global scenario of tea

in terms of area, production, yield, export and import of tea over the last two

decades. Amongst tea producing countries, the principal producers are China, India,

Sri Lanka, Kenya and Indonesia. These five countries account for 77% of world

production and 80% global exports.

Area under Tea plantation

The last decade of 20th Century saw a sluggish rate of increase in total area

under tea. During 1991, tea was cultivated globally in 2563.75 thousand ha which

increased to 2661.88 thousand ha with a compound growth rate of 0.42% during that

period. With the advent of 21st century the world tea industry saw a steady increase

in the overall area under tea.



During 2001 the area under tea was 2727.42 thousand ha which increased to

3691.89 thousand in 2010 with a compound growth rate of 3.42% during this period.

In terms of area under tea plantation, on an average during the last two decade

(1991 – 2013), China lead (45%) the world followed by India (21%), Sri Lanka

(7%), Kenya (5%), Vietnam (3%)

India21%

China45%Sri Lanka

7%

Vietnam3%

Kenya5%

Others19%

Fig 3.1 Percentage of share of area under tea in major Tea producing countries of the world

(Source: accessed from Internet)

EXPORT

World Tea export recorded a compound growth rate of 2.31% during 1991-

2000 where export increased from 1078.17 m kg to 1324.65 m kg. Almost similar

compound growth rate was observed in the first decade of 21st Century where

export increased from 1400.55 m kg in 2001 to 1738.41 m kg in 2010.

On an average during the last two decade, in the export front, both Kenya and

Sri Lanka lead the world each with 20% of their contribution followed by China

(17%), India (14%) and others (25%).



During the last five years, it has been observed that total world exports averages

41% of total world production and 84% of exports accounted for by six countries

(India, Sri Lanka, China, Kenya, Indonesia and Vietnam).

The largest tea producers India and China drink away most of their own

production and share only a small fraction of exportable tea. Sri Lanka and Kenya,

on the other hand, share only 7% and 5% tea growing area, but are world leaders in

exports, meeting 20 % each of world export needs.

India exported AVT premium tea worth USD 1,264,467 with total quantity of

320,468. Saudi Arabia is the largest buyer of AVT premium tea accounting for

exports worth USD 870,227 followed by United Arab Emirates and Qatar which

imported AVT premium tea worth USD 278,126 and USD 99,272 respectively.

Cochin Sea accounted for 96.6% of exports followed by Cochin which

account for 3.4% of exports.

Average price of AVT premium tea per unit is USD 3.95 and average value

per shipment is 3,741

IMPORT

Like export, tea import (either for re-export or for own consumption) has also

shown an increasing trend.

The review of the global scenario of tea in terms of area, production, yield,

exports and imports indicated overall increase in the quantity of tea in the world

market over last two decades and the trend is increasing. So strategies must be

adopted to meet up the challenges in global demand for tea in the coming years.

Besides, general consumption of tea, health benefit effects of tea need to be

promoted more vigorously to trap the non-conventional areas of tea in the world for

an expansion in the consumption. Value addition and diversification for a wide

range of tea products need to be developed for balancing the supply demand chain.

Through these ways, the global tea industry can think of sustainability in future

keeping in mind the climate change across the globe.



3.1.2. NATIONAL SCENARIO

Beginning of Tea in India

The discovery of indigenous tea in Assam in 1823 led to the origins of the tea

industry in India. However, the Calcutta Agricultural Society differs from the above

opinion. It has consistently held that in the early 1700's, the ships of the East India

Company frequently brought the tea plants in the country by way of curiosity. In

1788, Sir Joseph Bank recorded the existence of indigenous tea growing wild in

Coochbehar and Rangpur districts of Bengal and suggested the cultivation of this

plant. The wild teas of Cochlear confirmed the first discovery of indigenous tea in

India.

Birth of Indian Tea Industry

The birth of Indian tea industry was marked by the discovery of indigenous teas

plant in Assam in 1823 by Robert Bush. This received momentum when the East

India Company in 1833 lost the tea trading monopoly in China. In 1835, a scientific

deputation was sent to Assam to report on prospects of the tea industry and the team

saw tea plants in many parts in the hills between Assam and Burma. In 1836, C.A.

Bruce was made the Superintendent of Tea Forests. Among others, he formed the

Bengal Tea Company at Calcutta with the objective of purchasing the produce from

the East India Company’s tea plantations in India. Ultimately tea cultivation was

commissioned in many districts in India wherever there was some hope of a success.

Within a few months, India along with Sri Lanka dominated the world tea

trade/market.

Present status of Indian tea in Global position

India is the largest producer of black tea as well as the largest consumer of tea in

the world. Currently, India produces 23% of total world production and consumes

about 21% of total world consumption of tea – nearly 80% of the tea produced is

consumed within India. Over the last 20 years, India’s world ranking as an exporter

has come down from number one to number four, in the face of stiff competition

from Sri Lanka, Kenya, and China.



3.2 COMPANY PROFILE

3.2.1 History

In 1925, Alfred Vedam Thomas demolished a myth. He proved that it was not

just the British who could manage plantations by starting a 300 acre tea plantation at

Pasuparai, Tamil Nadu. From the original tea plantation, AVT has made steady

progress over the years moving on into rubber, coffee, vanilla, pepper and

cardamom. The seeds of AV Thomas group of companies were planted when Mr.

AV Thomas purchased grass land in a place named Pasuparai in Tamil Nadu in

1925 and planned tea saplings. On purchasing their estate Mr. AV Thomas floated

various companies under his management. The company was AV Thomas and

Company Limited. After this a number of companies were formed under his

leadership in different locations in Kerala. AVT Natural Products Ltd (AVT NPL) is

a public limited company promoted by A.V Thomas group as a strategic

diversification from the traditional plantation business of A.V Thomas Group. AVT

Naturals formed in 1994 belongs to the renowned AVT Group of Companies and in

the last 16 years has grown manifolds.

The company’s contract farming model ensures “Quality at Source”. Marigold

business is an integrated project starting from seed development and going on to

Oleoresin. The contract farming model followed by AVT Naturals has been

regarded as one of the best in the industry.

3.2.2 Location

Kerala is the land of tea plays a significant role in the global tea market. AVT

Naturals deals with a premium range of exotic spices and Tea products that come

straight from Kerala, Tamil nadu and Assam. AVT NPL is located in the port city of

Cochin, Kerala, India. Cochin is referred to as the ‘queen of the Arabian Sea’ or

‘the spice capital of the World’. Having been strategically located in Cochin, AVT

NPL has strategic advantage of proximity to the source of raw material and logistic

advantage of import, export facilities owing to the sea, air and rail transport modes

being within its reach.



AVT Naturals Product Limited (AVT NPL)

The AVT NPL started its operation by establishing a Soybeans Extraction plant in

Pandurana, Madhya Pradesh, which produces high quality of Soya-oil and oiled cakes.

The oil is used as a raw material by the domestic vegetable oil industry while

the cake was mainly exported to abroad.

In 1994 AVT Natural Products Limited, setup its second extraction unit at

Vazhakulam near Aluva in Kerala. The AVT Group of companies after 85

years of i ts operation has presence in Indian agri-business sector

including plantations, aero processing, plant biotechnology and natural food

and food ingredients. AVT NPL is 100% export oriented unit located in

Kochi, Kerala the spice capital of the world.

AVT NPL is a member of AV Thomas group of companies with interest in

plantations, leather goods, tissue culture and medical diagnostics. AVT NPL is

one of the largest contract framing companies in India, with proven

capabilities in backward integration. There are two companies under the spice

project, AVT NPL and AVT McCormick in 1994.

AVT GROUP OF COMPANIES

1. AVT Natural Products Co

AVT Natural Products is the world's largest Oleoresin pigment manufacturer

and exporter with large volume exports to food processing and cosmetic

industries in Mexico and the USA.

2. AVT McCormick ingredients LTD

In a strategic joint venture with McCormick & Co Inc-USA, AVT distributes

a wide variety of spices and curry powders for the international market.



3. AVT Agro chemicals

AVT manufactures and markets pesticides formulated under direct

license from Bayer AG, Germany, with a distribution network of over 5000

outlets spread across India.

4. AVT leathers

The company manufactures a wide range of leather products, catering to

licensee requirements of various international brands including Ralph Lauren

and Pierre Cardin.

5. AVT Biotech

AVT Biotech is the leading exporter of tissue culture plants and operates

the largest bio-technology facility in India, producing 8 million plants for the

Indian market and 6.5 million for the international market annually.

6. AVT Rubber

Over 2 million kilograms of rubber is produced annually at AVT's rubber

plantations. AVT Rubber produces various grades like centrifuged latex, crumb

rubber and dipped rubber goods.

7. AVT Consumer Products Division

AVT Consumer Products Division (CPD) markets some of South

India's favourite brands of tea. AVT also has a significant presence in the

international market for various bulks, commoditized teas. Cardamom brands

like Raihana and Shahi are already being exported and AVT is poised to enter

the coffee export market soon. On the anvil are plans to diversify into value

added services like vending machines and a chain of tea parlours. Primary

among the CPD's strengths is the ability to innovate constantly pre-determining

the needs of the consumer.



Table 3.1 AVT Group of Companies

No Year Unit Activity

1 1925 The high land produce company limited Tea and cardamom

2 1934 The midland rubber produce company

limited

Tea, cardamom and rubber

exports

3 1935 AVT and company limited Trading export and manufacturing

4 1936 The Kalpatta estate limited Tea and cardamom

5 1937 The Rajagiri rubber produce Rubber, coffee export

6 1941 The Nelliampathy tea produce company

limited

Tea and coffee export

7 1943 The shevaroy estate limited Tea, coffee, cardamom and edible

oil

8 1946 Neelamalai agro industries limited Tea trading and export

9 1976 AVT investments limited Financial and investment

company

10 1976 AVT leather and allied products Ltd Leather goods and export

11 1976 Nelliyampathy investments limited Finance

12 1980 Hawthrone investments limited Finance and investments company

13 1989 Midland latex products limited Latex examination glover

14 1994 AVT naturals products limited Spice, oleoresins and essential oil

15 1995 Rush AVT medicals limited Manufacturing caters

(Source: accessed from company records)



Major Areas of Business

AVT Group of companies has stopped up into varies areas of business. The

divisions in the AVT group are:

Figure 3.2 Different areas of business

(Source: accessed from company website)

Company Turnover


AVT Grou

p

Tea

Leather Goods

Plant biotechnol

ogy

Rubber

Commodity Export

Oil and Extractio

ns

Project Engineeri

ng

Agencies

Agro Chemicals

Coffee and

Spices


Today AVT is a Rs. 1000 crore company with a strong local and overseas

presence in branded packaged goods, bulk commodities, beverages and the spices

market. AVT NPL holds a major share in the Indian spice industry and the present

turnover of the company is about 87 Crore rupees.

Brand Associations of AVT Tea

Brand Associations of AVT Tea are the informal nodes linked to the brand

node in memory. It contains meaning of the brand as perceived by consumers. As

in case of AVT tea products, Brand associations come in three major forms

Attributes

Benefits

Attitudes

Brand associations are the category of a brand’s assets and liabilities that

include anything “linked” in memory to a brand. Keller (1998) defines brand

associations as informational nodes linked to the brand node in memory that

contains the meaning of the brand for consumers. Brand associations are important

to marketers and to consumers. Marketers use brand associations to differentiate,

position, and extend brands, to create positive attitudes and feelings toward brands,

and to suggest attributes or benefits of purchasing or using a specific brand.

When delimiting brand functions the greatest difficulty lies in the small

number and the diverging nature of studies examining their dimensionality.

Furthermore, most works do not make an explicit distinction between product

functions and brand functions. Product functions are associations related to the

physical or tangible attributes, and so are present in all products, even in those sold

without a brand or with an unknown brand. Brand functions, on the other hand, are

associations related to intangible attributes or images added to the product thanks to

its brand name, that is, they represent benefits that can only be obtained from

products with a brand.

Figure 3.3 Brand Associations of AVT Tea



(Source: accessed from consumer survey)

Other informational nodes which give Brand Associations of AVT Tea are given

below

Premium tea bags

South Indian Tea giant

Green logo of AVT

CSR activities

House wives

Spices

Natural Flavours

.

. 3.2.4 BUSINESS PROFILE


AVT TEA

AV Thomas

Natural products

Strongest Tea ,consisten

tly

Acceptability

AvailabilityAVT

Premium

Affordability

Discount coupons

Quality

South Indian Tea Brand

Tea Plantati

ons


AVT has been successful in tying up with large format stores to supply

commodities for store brands. The Food World tie-up is a notable example. AVT

is open to co-branded associations wherein branding rights are exclusive but the

products are made to retail chain specifications. AVT also enters into agreements

wherein brand ownership rests with the retail chain. They are constantly striving

to add value to the retail segment and welcome associations that are mutually

beneficial.

Board of Directors

Registered Office

64, Rukmini Lakshmipathy Salai, Egmore Chennai-600 008,

E-mail: shareholder@avt spice.com.

Subsidiary Companies

AVT NPL, 117 Philip street, #05-01 Grand building, Singapore.

Heilong Jiang AVT Bio- Products Ltd (sub of AVT NPL) Shuang Yashan

state farm, Boston, China.

.2.5 Mission, Vision, Values & Team Jai Bharath school of management studies 33

Chairman : Mr. Ajith Thomas

Managing Director : Mr. M S A Kumar

Directors : Mr. Habib Hussain

Mr. P. Shankar I.A.S (Retd)

Mr. Shyam. B. Ghia

Mr. A Alagappan

mailto:shareholder@avt


Mission

To be a Global Leader in Marigold Extracts through a fully integrated supply

chain with excellence in Plant Science & Agriculture and Logistics Management.

To achieve growth and stability in performance by diversifying to value added

natural ingredients for synergistic business segments through development of

product research and technology base.

To bring in highest level of efficiency, traceability, food safety and quality in the

supply chain through Contract Farming.

To establish brand equity for natural ingredients through development of

consumer marketing skills.

To comply flawlessly with ever changing international statutory regulations for

our business segments.

To consistently add value in our business to deliver superior returns to all

stakeholders-customers, employees, shareholders, suppliers, and society

Vision:

To be a global leader, enriching lives through natures on ingredients as food,

nutrition, and medicine for mankind.

Provide total customer satisfaction through continuous improvement in

products, process and services.

Develop and motivate employees through ongoing HRD programs.

Values

Constantly strive for value in whatever we do.

Belief in ethical business and transparency.

Encourage individual excellence and foster environment for team work.

Know the business environment, product and customers well update

knowledge.

Respect the neighborhood and individuality of each customer, supplier, and

employee.

Team



AVT Natural has 160 permanent dedicated employees in its direct rolls.

450 foot soldiers supporting contract farming advising farmers on Good

Agricultural Practices (GAP).

Our dedication to total customer satisfaction and adherence to highest quality

standards have established our name to be reckoned with in the food

ingredients business.

3.3 PRODUCT PROFILE

AVT NPL is an ISO 9002 certified company which produces the best quality

of black Tea from its 100% export oriented unit highly competitive world market of

USA, EUROPE and other Asian countries.

Value Added Tea

1. Decaffeinated Tea

Decaffeinated Tea India and China are fast emerging as a low cost hub for

various manufacturing activities and toll processing of tea wherein caffeine is

solvent extracted is no different altogether. India holds the competitive advantage

because of strict food safety laws and consistent and reliable quality offered by

Indian vendors. AVT as a group is a prominent player in beverage industry in India

and their unquestionable expertise in tea has led to various synergistic research and

development activities which helped AVT NPL gaining stronghold in decaffeinated

tea segment. We have successfully invested in solvent based extraction wherein

caffeine is removed without compromising tea quality. Today with processing

capacity of 7000 MT and actual capacity much more than that, we are one of the

largest toll processor of teas in India. Our customer base include global tea majors

like Harris Freeman Our dedicated decaffeination plant and our inbuilt thrust on

Quality, Food Safety and GMP practices assures world class products for the

customers.

2. Green Tea Jai Bharath school of management studies 35


Beverage Grade-Polyphenols 35% to 45% (Catechins 20% to 30%,

EGCG 5 % to 15%) Green tea extract with high caffeine (20% to 80%)-

Thermogenic

Nutraceutical Grade- Polyphenols 85% to 95 % (Catechins 65% to

75%,EGCG 40% to 45%)

Application as antioxidant in food-EGCG 45% Meat Industry, Oil

Industry, Cosmetics, Oral Hygiene

3. Instant Black Tea

Instant Black Tea –cold water soluble-Iced tea

Instant Black Tea –hot water soluble

BULK TEA

AVT CPD exports various grades of fine quality black tea in both dust

and leaf forms to Russia, the Middle East and Europe. This division has

contributed consistently and significantly to the overall growth of the company in

spite of the stringent quality and satisfaction measures that the export market

imposes.

The types of tea that can be procured from AVT are:

TEA

AVT Rajah

AVT Premium

AVT Premium Tea Bags

AVT Assam

AVT Gold Cup

AVT manalaroo

1. AVT Rajah



AVT Rajah is a popular blend of South

Indian teas arrived at after tasting 25,000

cups of tea. A high quality golden

colored blend with a refreshing full-

bodied flavor, Rajah packs taste and

freshness into every cup.

2. AVT Premium

The flagship brand and market leader

in the southern states of Kerala and

Tamil Nadu, AVT Premium is a blend

of dust teas from the finest high-grown

tea gardens of Assam and South India.

A strong dark brew with a unique pungent flavor, AVT Premium is a favourite

primarily for its strong taste and consistency.

3. AVT Premium Tea Bags

For convenience seekers, AVT Premium is

also available in tea bags. A ‘Perflo’ system

allows quick, complete infusion of tea while

providing the real taste of traditionally brewed

tea.



4. AVT Assam

AVT Assam is a rich blend of the finest Assam teas. Every cup provides a

robust, full-bodied taste with the rich flavour of real Assam tea.

5. AVT Gold Cup

Discover the pleasures of a truly sensory

experience in this finely crafted blend of

100% Assam Tea. From the invigorating,

full bodied flavour of Assam Tea to the

beautiful rich color, it is the perfect balance of taste and strength. Go ahead you

deserve a Gold Cup.

AVT Premium Coffee

AVT has recently launched AVT Premium Coffee.

An instant success thanks to AVT’s ability to

understand the preferences of the coffee drinkers. A

60:40 blend of coffee and chicory. AVT Premium

provides a strong flavour that resembles traditional

filter coffee



TEA

AVT Darbari

AVT Supreme

1. AVT Darbari

The perfect blend from Assam’s finest gardens, Darbari is AVT’s popular leaf

tea. Its heady flavour, unique taste and competitive pricing make AVT Darbari a

very attractive brand in its segment.

2. AVT Supreme

AVT Supreme is a premium blend of the finest Assam CTC leaf. It is strictly

for the discerning tea drinker and is known for its uniquely rich flavour and

aroma.



The Production Procedure: Delivering quality at every point

As soon as the purchases are affected, the details of all teas produced are fed

into AVT's proprietary software "Panchathantra". Blend sheets are generated using

this application.

The process:

Once the blend sheets are generated, the samples pertaining to the teas used

are drawn from the warehouses. Representative table bulks of the blends are

prepared. These table bulks are then tasted against the various standards and

competition. The volumes are recorded and only those blends that match up to the

standards are passed for blending. Finally, blend sheets are issued to the various

blending units.

The place:

AVT has state of the art manufacturing facilities in Coimbatore and Kochi.

All the teas are blended using Vertical Tower Blenders, which are fitted with rare

earth magnets and sorting machines to remove any stray iron filings and other

extraneous matter (like jute strings) from the teas. Once the blending is complete,

the blended tea is once again tasted against the standard. The blended tea is sent into

the market for testing and certification. After proper testing the blends are released

for packing.

The product:

The blended teas are packed with state of the art packing machinery

installed in our units. All necessary care is taken to see that our products meet PFA

norms. Prior to the actual blending process, a representative table bulk of the blend

order is made and is tested along with the standard so as to ensure consistency in the

end product. AVT has a modern laboratory that is fitted with the latest testing

equipments in the Coimbatore facility. All our blends are put through statutory

checks required by the PFA Act.



DISTRIBUTION NETWORK

Acceptability, Availability and Affordability' is the philosophy at AVT.

AVT constantly ensure that our distribution network is efficient in the rural,

semi-rural and urban markets. The right distribution translates to low cost, high

efficiency and better sales, merchandising and distributions programs. AVT still

holds over 90% of the total distribution in Kerala and Tamil Nadu, which is quite a

remarkable feat considering that there are bigger market players with deeper pockets

and national brands. AVT has 850 distributors across Kerala, Tamil Nadu, Andhra

Pradesh, Karnataka and Orissa.

Table 3.2: Distribution Network coverage of AVT in India

StateTotal retail

units inthe state (in

lakh)

Retail units of

AVT (in lakh)

AVTDistributors

% Market

Coverage

Kerala 9 7.5 127 85%

Tamil Nadu 15 10.5 284 70%

Andhra

Pradesh

20 8 169 40%

Karnataka 16 4 137 25%

Orissa 12 5.4 133 45%

(Source: accessed from company website)



MAJOR SPICES EXPORTED

AVT NPL is an ISO 9002 certified company which produces the best quality spice

oil extracts and colour pigments from its 100% export oriented unit highly

competitive world market of USA, EUROPE and other Asian countries. Product

Profile of the Company is given below.

Natural colour

Marigold extracts Black pepper

Oleoresin paprika chilly

Turmeric Hot chilly (capsicum)

Black pepper (natural) Ginger

Celery Nutmeg

Natural flavors

Black pepper oleoresin

Celery oleoresin

Capsicum oleoresin

Nutmeg oleoresin

Ginger oleoresin

Essential oils

Black pepper

Celery

Ginger

Nutmegs

Antioxidants Rosemary extracts

Green tea

New products

Vanilla extract

Annatto

Fenugreek

Safflower extract



Awards and Recognitions

AVT Natural Products won Asia’s 200 best under A billion by Forbes

magazine in 2012. AVT Natural Products Ltd won last year Emerging India Awards,

constituted for Small and Medium Enterprises in India, for "FMCG Food and Agri

Business Category". All SMEs having maximum net worth up to Rs. 500 million

were eligible for this award.

AVT Naturals have shared second prize of Kerala State Pollution Control

for the excellence in pollution control by large industries in Kerala for 2009/10.

Kerala State Productivity Council Award for overall performance of the company. The

company has bagged this award for the second time. FACT M.K.K. Nair Memorial

Productivity Award 1998-1999.

QUALITY CERTIFICATES

The brand quality and perceived quality of an organization is represented by

number of quality certificates posses by that company. AVT Natural products Ltd has

the following quality certificates, which show their quality production and services

provided to their customers.

ISO 9001:2008 Certification

ISO 22000: Food Safety System Certification

Spice house certificate by the Spice Board of India

Kosher certificate

GMP(Good Manufacturing Practice)

American Institute of Banking International, USA (AIB) 1999 "Superior rating"

in 2002, 2003,2004,2005,2006.

2001, 2004 consecutive year "lab of the year" for micro technology worldwide.



Code of Ethics

100% compliance with the law.

Protection of the property information and confidentiality of information.

Prohibition against insider trading.

Giving and receiving gifts of certain values.

Policies regarding records retention and e-mail access.

Policies of improper or questionable payments.

Corporate Social Responsibilities

AVT Natural, as a part of its social responsibility identifies the needs of

the neighborhood and fulfils them completely. They support 30,000 small and

marginal farmers with technology to improve their net farm returns and their

livelihood. AVT group respect their neighborhood and all our stakeholders.

Eye Clinic: Around 40,000 school children were screened and, those who

required vision correction were identified and given the necessary

treatment. This was carried out by the doctors from Shankara Netralaya in

association with AVT Natural Products and Rotary Club, Sathyamangalam.

Successful cleaning of weeds and waste materials from the Bhavani river

banks and strengthening of the embankments to provide better irrigation

facility to the farming community was carried out.

Infrastructure of the approach roads to our facility was further rectified.

Yearly financial assistance offered to the Panchayat for the Polio

Eradication Programme.

Free weekly medical checkup and assistance provided to the rural

community by doctors of AVT Natural Products at Sathyamangalam.

AVT has offered numerous facilities in the education sector by providing

basic amenities like computers, laboratory equipments etc. for the students



of neighbouring schools. Cash awards have been endowed on top ranking

students in the final year of their school.

4. DATA ANALYSIS

RESEARCH APPROACH:

Survey method was used for this study. It was conducted among the homemakers

of AVT Natural Products who are the current and prospective customers of the AVT

TEA.

RESEARCH DESIGN

Research design is a conceptual structure within which research is

conducted. It facilitates smooth sailing of various research operations to make the

research as effective as possible.

Survey research was used for the study with encompasses measurement

procedures that involves asking questions to respondents. The study was based on

responses given by the customers of AVT Natural Products.

For this purpose a descriptive study was found to be most appropriate. A

descriptive study is undertaken in order to ascertain and describe the characteristics

of the variables involved in the study. Chi-square test and correlation test have been

employed to find out the relationship among variables and the objectives of the

study.

DATA COLLECTION

a. Data Source

The study requires data from both primary and secondary sources.

The primary data was collected from the customers of the AVT Tea products who

are representative of all sectors of business of the company. Respondents include

both the current and prospective customers of AVT TEA.

The secondary data was collected from published magazines and articles of the

company, official records, academic books, internet etc.

b. Data Collection Method



Questionnaires were sent to all the selected customers of the company. The

requisite data for the study were collected through structured questionnaires.

c. Data collection tool

A structured questionnaire was set with 22 questions asking the

respondents to think about the benefits, perceived quality and other attributes of the

AVT Branded Tea products and their effects of associations on the customers.

The researcher initially prepared a pool of questions which was further

modified and read by the company for the ease of administration.

SAMPLING DESIGN

a. Population

All the items under consideration in any field of inquiry constitute a Universe or

Population. The group of individuals under study is known as population or

universe. Therefore, the universe is the aggregate of all the units to be studied to any

field of inquiry. In this study the population of the homemakers of Ernakulum

district is taken.

b. Sample

Sample size refers to the number of items to be selected from the universe to a

sample. Here the sample size taken for the study is 100.

c. Sample unit:

Every single customer that comes under the list of 100 customers allotted by the

company comes under this list.

CHAPTER OVERVIEW

This chapter contains analysis and interpretation of primary data collected

through structured questionnaire. Percentage analysis was done to know the

cumulative response of respondents for each variable. The responses were tabulated

with the help of bar charts, pie diagrams and doughnuts, whereas the hypothesis for



testing the associations is evaluated using chi-square method. Correlation test has

been employed to find out the relationship among variables.

4. DATA ANALYSIS

4.1 Showing the regular customers of AVT Tea

Table 4.1: Regular Customers of AVT NPL (Brand Loyalty)

Number of years Frequency Percentage

5+ years 64 64%

4 years 18 18%

3 years 6 6%

2 years 12 12%

1 year 0 0%

Total 100 100%

(Source: Survey data)

5+ years 4 years 3 years 2 years 1 year0

10

20

30

40

50

60

70Figure 4.1: Loyal customers of AVT Tea in years


Interpretations

The chart indicates that, there is large number of loyal customers using the tea

products of AVT NPL. The number of customers using product above 5 years is 64%,



followed by 18 per cent of customers in four years. Therefore the bar chart shows the

brand loyalty among customers for more than five years.

4.2 Showing the most purchased brands of AVT Tea

Table 4.2: Most purchased brands of AVT Tea

No Products Frequency Percentage

1 AVT Rajah 28 28%

2 AVT Premium 55 55%

3 AVT Gold cup 15 15%

4 AVT Assam 2 2%

5 AVT Manalaroo 0 0

Total 100 100


AVT Rajah AVT Premium AVT Gold cup AVT Assam AVT Manalaroo0

10

20

30

40

50

60

Figure 4.2: Most purchased brand of AVT Tea

(Source: Survey data)Interpretations

The bar chart indicates that, AVT premium Tea has the highest percentage of

customers of about 55. It is followed by 28 per cent of AVT Rajah and 15 per cent of



AVT Gold cup customers. In addition, the customers of AVT Assam and AVT

Manalaroo are very negligible as compared to other brands of AVT NPL.

4.3 Respondents preferred brands for Tea consumption

Table 4.3: Most purchased Tea brands

consumers preferred

brands

Frequency Percentage

AVT Tea 43 43%

Three Roses 4 4%

Kannan Devan 38 38%

Tata tea 3 3%

Red label 12 12%

Total 100 100%


AVT Tea 3Roses Kannan Devan Tata tea Red label0

5

10

15

20

25

30

35

40

45

50

Figure 4.3: Most purchased Tea brands


Interpretations

The survey indicates that, the most preferred Tea brands are AVT Tea and Kannan

Devan Tea of 43% and 38% of customers respectively. This shows the competition



between AVT Tea and Kannan Devan. Furthermore, Red Label has 12 per cent of

customers. However the other brands have very few customers for brand preference.

4.4 Benefits of AVT Tea product over competitors

Table 4.4: Benefits of AVT Tea Product over competitors

Benefits of AVT Tea Product Frequency Percentage

Perceived Quality 39 39%

Availability 13 13%

Affordable Price 33 33%

Product attributes 5 5%

Acceptability 10 10%

Total 100 100%


Perceived Quality Availability Affordable Price Product attributes Acceptability0

5

10

15

20

25

30

35

40

45

39%

13%

33%

5%

10%


The bar chart indicates that, the most popular benefit of AVT Tea is the perceived

quality (39%) and the second most popular benefit is the affordable price (33%)


Figure 4.4: Benefits of AVT Tea Product over competitors


over its competitors. There are few respondents who caste the other benefits such as

the availability (13%), acceptability (10%) and product attributes (5%) of AVT Tea.

4.5 Promotional activities of AVT Tea on customers’ purchase decision

Table 4.5: Promotional activities of AVT Tea



No Promotional activities Frequency Percentage

1 Advertisements 25 25%

2 Gift coupons 31 31%

3 Discount Offers 31 31%

4 Festival Offers 13 13%

5 Other promotions 0 0%

Total 100 100%


Advertisements Gift coupons Discount Offers Festival Offers Other promotions0

5

10

15

20

25

30

35

25%

31% 31%

13%

0%

Figure 4.5: Promotional activities of AVT Tea


Interpretations

The graph demonstrates that, majority of the AVT Tea customers are equally

influenced by discount offers (31%) and gift coupons (31%) on their purchase

decisions. A large number of respondents think that 25 per cent of advertisements have

an impact on their purchase behaviour. A small percentage of festival offers also have

an effect on customers whereas other promotions have no influence on the purchase

desire.

4.6 Showing the promoters of purchase behaviour of AVT Tea over other Brands

Table 4.6: Promoters of AVT Product

promoters of AVT Product Frequenc

y

Percentage

Self 43 43%

Friends 4 4%

Retailers 0 0%

Family 13 13%

Media 40 40%

Total 100 100%




self friends retailers family media0

5

10

15

20

25

30

35

40

45

50Figure 4.6: Promoters of AVT Product


Interpretations

The bar chart shows that, 43 out of 100 respondents are ‘self’ motivated and 40

per cent are influenced by media advertisements of AVT Tea. Family has a

significant role of about 13% of promoters while friends inspired only four

percentages for the purchase of AVT products. An important finding from the

survey is that retailers have no role in purchase intentions of the respondents.

4.7.1 Showing the rating of Perceived Quality of AVT Tea products.

Table 4.7.1: The perceived Quality rating of AVT Tea products

Satisfaction Level Frequency Percentage

Very high 55 55%

High 32 32%

Medium 13 13%

Low 0 0%

Very low 0 0%



Total 100 100


Very high High Medium Low Very low0

10

20

30

40

50

60

Figure 4.7.1: The perceived Quality rating of AVT Tea products


Interpretations

The line graph illustrates that, 55 per cent of respondents have been perceived as

‘very high’ quality. It is followed by 32% of ‘high’ quality level of AVT Tea, while

percentage of 13 customers says that perceived quality is ‘neutral’. The ‘low’ and ‘very

low’ customers regarding the Quality of AVT account for zero.

4.7.2 Demonstrating the quantity of purchase level of homemakers per month

Table 4.7.2: Quantity of purchase level per month

Quantity of purchase level Frequency Percentage

Very high 4 4%

High 32 32%

Medium 56 56%

Low 8 8%

Very low 0 0%



Total 100 100


4%

32%

56%

8%

Figure 4.7.2: Quantity of purchase level per month

very high

high

medium

Low

very low


Interpretations

The pie diagram depicts that, AVT Tea has majority of 56% of medium level

quantity purchase while 32 per cent of high level quantity purchase by customers

during a month. The rest of the quantity purchase levels by customers per month is 4%,

8% and 0% respectively.

4.8 Showing the scope of Future purchase of AVT Tea Products

Table 4.8: Future purchase of AVT Tea Products


Definitely will 64 64%

Probably 26 26%

Probably not 4 4%

Might or might not 4 4%

never 2 2%



Total 100 100%


64%

26%

4%4% 2%

Figure 4.8: Future purchase of AVT Tea Products


Interpretations

The pie chart shows that, the highest percentage (64%) of respondents are willing

to purchase the AVT Tea in future whereas 26 per cent of respondents have

probability on their purchase desire. There are only 2% of respondents who were

‘not willing’ to purchase AVT products in future.

4.9 Showing familiar factors of AVT Tea among homemakers

Table 4.9: Familiar factor of AVT Tea

Familiar Factors

of AVT tea


Brand associations 26 26%

Brand awareness 21 21%

Brand loyalty 23 23%

Brand quality 27 27%



Brand personality 3 3%

Total 100 100%


Brand associations Brand awareness Brand loyalty Brand quality Brand personality0

5

10

15

20

25

30

Figure 4.9 : Familiar factor of AVT Tea


The graph indicates that, majority of homemakers are familiar with brand quality

(27%) and brand associations (26%) of AVT Tea. They are followed by 23 per cent

of brand loyalty and 21 per cent of brand awareness. Brand personality has only five

per cent on familiarizing the AVT Tea products among customers.

4.10 Showing rating of the brand associations’ which have influence on brand preference among homemakers

4.10.1 Showing the Rating of brand association AV Thomas group

Table 4.10.1: Rating of AV Thomas group

Rating of AV

Thomas group

Frequenc

y

Percentage

Excellent 76 76%

Very good 13 13%

Good 11 11%



Average 0 0

Poor 0 0

Total 100 100%


Excellent Very good Good Average Poor 0

10

20

30

40

50

60

70

80

Figure 4.10.1 : Rating of AV Thomas group


Interpretations

The graph shows that, 76 out of 100 respondents are rated the brand association

as ‘AV Thomas’ has excellent influence, while 13 percent ranked it as ‘very good’

and remaining 10 customers are caste as ‘good’.

4.10.2 Showing the Rating of the brand association: Strongest Tea, consistently (Tagline of AVT Tea).

Table 4.10.2: Rating of the tagline: Strongest Tea, consistently

Rating of Tagline Frequency Percentage

Excellent 40 40%

Very good 25 25%

Good 28 28%

Average 5 5%



Poor 2 2%

Total 100 100%



Interpretations

The bar chart represents, the majority of respondents who voted the tagline as

‘excellent’ and 25% and 28% of respondents who believe that tagline has been

influenced as ‘very good’ and ‘good’ respectively. There are hardly 5% and 2% of

customers having ‘average’ and ‘poor’ influence about the tagline.



5

10

15

20

25

30

35

40

45Figure 4.10.2 : Rating of the tagline: Strongest Tea, consistently


4.10.3 Showing rating of the brand association: South Indian Tea giants.

Table 4.10.3: Rating of the brand association: South Indian Tea giants

Rating of South

Indian Tea giants

Frequenc

y

Percentage

Excellent 11 11%

Very good 9 9%

Good 16 16%

Average 51 51%

Poor 13 13%

Total 100 100%



10

20

30

40

50

60

Figure 4.10.3 : Rating of the brand association: South Indian Tea giants


The chart represents that, most of the homemakers have ‘average’ rating of 51% and

the second most percentage accounts for ‘good’ (16%). It is then followed by 11% of

‘excellent’ rating for the brand association ‘South Indian giants’. ‘Very good’ has only

9 per cent of respondents whereas ‘poor’ rating has 13% of respondents.



4.10.4 Showing rating of the brand association: ‘Discount coupons’.

Table 4.10.4: Rating of the brand association: Discount coupons

Rating of Discount

coupons

Frequenc

y

Percentage

Excellent 72 72%

Very good 11 11%

Good 9 9%

Average 8 8%

Poor 0 0

Total 100 100%



10

20

30

40

50

60

70

80

Figure 4.10.4 : Rating of the brand association: Discount coupons


Interpretations

According to the bar diagram 72 out of 100 respondents say that, discount coupons

have ‘excellent’ influence on their purchase, while 11 per cent represents for ‘very good’.

There are almost similar rating for ‘good’ (9%) and ‘average’ (8%). In addition to that,

none of the homemakers voted ‘poor’ rating for this brand association of AVT Tea.



4.10.5 Showing rating of the brand association: ‘Availability’.

Table 4.10.5: Rating of the brand association: Availability

Rating of availability Frequency Percentage

Excellent 12 12%

Very good 15 15%

Good 23 23%

Average 50 50%

Poor 0 0

Total 100 100%



10

20

30

40

50

60

Figure 4.10.5 : Rating of the brand association: Availability


Interpretations

The bar chart shows that, half of the sample is rated as average and 23% of

respondents were representing ‘good’ for the availability of AVT Tea. The other

ratings were given as follows, very good (15%) and excellent (12%) while poor has

zero respondents.



4.10.6 Showing rating of the brand association: ‘Acceptability’.

Table 4.10.6: Rating of the brand association: Acceptability

Rating of

Acceptability

Frequenc

y

Percentage

Excellent 41 41%

Very good 25 25%

Good 27 27%

Average 5 5%

Poor 2 2%

Total 100 100%



5

10

15

20

25

30

35

40

45

Figure 4.11.6: Rating of the brand association: Acceptability


Interpretations

The bar graph represents that, 41 per cent of customers rated as excellent for the

acceptability (brand association) of AVT Tea while it has 27% and 25% of rating for

both very good and good respectively. Hardly 5% for average and 2% for poor

rating have given to the acceptability of AVT tea.



4.10.7 Showing rating of the brand association: ‘Affordability’.

Table 4.10.7: Rating of the brand association: Affordability

Rating of

Affordability

Frequenc

y

Percentage

Excellent 65 65%

Very good 27 27%

Good 3 3%

Average 5 5%

Poor 0 0

Total 100 100



10

20

30

40

50

60

70

Figure 4.11.7: Rating of the brand association: Affordability


Interpretations

According to the bar chart, a highest percentage (65%) has been rated as ‘excellent’

and 27% of respondents were representing ‘very good’ for the affordability of AVT

Tea. The ‘average’ and ‘good’ rating have a least percentages of 5 and 3 respectively;

while and ‘poor’ rating has zero respondents.



4.11 Showing the effects of brand associations of AVT Tea on

customer attractiveness

Table 4.11: brand associations of AVT tea

Brand association

of AVT tea


Product benefits 4 4%

Perceived Quality 45 45%

Product promotions 40 40%

Product attributes 3 3%

Other factors 8 8%

Total 100 100%


Product benefits Perceived Quality Product promotions Product attributes Other factors

4%

45%

40%

3%

8%

Figure 4.11 : brand association factors of AVT tea


Interpretations

The graph shows that, 100 out of 45 respondents are influenced by perceived

quality while 40 respondents are attracted by the product promotions of AVT Tea.

The other factors of AVT Tea have negligible role in attracting customers.



4.12 Ranking of AVT Tea products based on the parameters

Table 4.12: Ranking of AVT Tea products

Ranking of AVT

Tea products


Expertise 21 21%

Trust worthiness 30 30%

Quality 33 33%

Liability 0 0

None of these 16 16%

Total 100 100%


ExpertiseTrust worthiness

qualityLiability

None of these

0

5

10

15

20

25

30

35

Figure 4.12: Ranking of AVT Tea products


The graph represents that, 33 per cent of respondents ranked the quality as major

parameter for brand preference while 30% consumers believe that AVT products are

trust worthiness. The other parameters expertise and none of these accounts for 21%

and 16% respectively whereas Liability has no respondents at all.



4.13 Showing the inspired attributes of the AVT Tea products

Table 4.13: Attributes of AVT Product

Attributes of AVT

Product


Quality 40 40%

Quantity 3 3%

Promotions 19 19%

Price 35 35%

Packaging 3 3%

Total 100 100%


Quality Quantity Promotions Price Packaging0

5

10

15

20

25

30

35

40

45

Figure 4.13 : Attributes of AVT Product


Interpretations

The bar graph demonstrates that, quality (40%) and price (35%) are the important

attributes of the AVT Tea. Promotional activities inspired 19% of respondents while

quantity and packaging of AVT Tea have only 3 per cent of inspired customers.



4.14 Demonstrating the brand quality uniqueness of AVT

Table 4.14: Brand Quality uniqueness of AVT


Certainly 60 60

Probably 17 17

Probably not 2 2

Might or might not 23 23

never 0 0

Total 100 100


Certainly Probably Probably not Might or might not

never0

10

20

30

40

50

60

70

60

17

2

23

0

Figure 4.14: Brand Quality uniqueness of AVT


Interpretations

The chart shows that, a highest percentage of 60 respondents declare that AVT

Tea ‘certainly’ has brand quality uniqueness whereas, 23 per cent think that it is

‘might or might not’. However 17 out of 100 homemakers say that, there is

‘probably’ in this case, while ‘probably not’ represents only 2%. No one believes

that AVT Tea ‘never’ has brand quality uniqueness.



4.15 Feeling about the Quality guarantee provided by AVT Tea

Figure 4.15: Quality guarantee rating by purchasers


Excellent 30 30%

Good 49 49%

Average 15 15%

poor 6 6%

Very poor 0 0

Total 100 100%


30%

49%

15%

6%

Figure 4.15: Quality guarantee rating by purchasers

Excellent Good Average Poor very poor


Interpretations

The pie chart represents that, a highest percentage of 49 respondents rated the

‘good’ quality guarantee, whereas 30 per cent says that AVT has ‘excellent’ quality

guarantee. The 15% respondents rated the quality programs are ‘average’ and 6% of

respondents says that it has ‘poor’ quality guarantee. There are no customers who rated

AVT Tea as ‘very poor’ for their quality guarantee.



4.16 Showing the willingness to pay a premium for the AVT brand

products

Table 4.16: Willingness to pay for Premium of AVT Products


Yes 70 70%

No 30 30%

Total 100 100


YES70%

NO30%

Figure 4.16: Willingness to pay for Premium of AVT Products


Interpretations

The doughnut chart demonstrates that, 70% respondents are willing to pay price

for premium, whereas others are not ready to buy the premium products of the AVT

Tea.



4.17 Showing the changes needed for AVT Product in future

Table 4.17: Changes Needed for AVT Product

Changes Needed for AVT Product Frequency Percentage

Improved Quality 7 7%

More Quantity 14 14%

More promotions 39 39%

Less Price 35 35%

Better Packaging 5 5%

Total 100 100


Improved Quality

More Quantity More promotions Less Price Better Packaging0

5

10

15

20

25

30

35

40

45

Figure 4.17: Changes Needed for AVT Product


Interpretations

The bar graph demonstrates that, the majority of the homemakers needed changes

such as, more promotions (39%) and less price (35%). 14 per cent of the respondents

wanted more quantity of AVT Tea while changes of improved quality and better

packaging account for 7% and 5% respectively.



4.18 Showing consumers’ willingness to purchase the brand

extensions of AVT

Table 4.18: Consumer willingness to purchase the Brand Extensions of AVT


Yes 55 55%

No 17 17%

can’t say 28 28%

Total 100 100%


55%

28%

17%

Figure 4.18: Consumer willingness to purchase the Brand Extensions of AVT

YES NO can’t say


Interpretations

According to the pie chart 55% homemakers are ‘would like to purchase’ the brand

extensions, while 17 percent of respondents represent their unwillingness. The

remaining 28% of homemakers ‘couldn’t say’ their willingness to purchase the

products of the AVT Tea.



4.19 Showing the recommendations of AVT Tea products to others

Table 4.19: Recommendation of the AVT Branded Tea products to others


Yes 59 59%

No 41 41%

Total 100 100%


YES NO

Recommended 59 41

5

15

25

35

45

55

65

Figure 4.19: Recommendation of the AVT Branded Tea products to others


Interpretations

The bar chart shows that, 59% of respondents would like to recommend the

products, while 41% of respondents are not willing to recommend AVT Tea products

to others.



4.20 Showing the current view on AVT Tea product

Table 4.20: Current view of AVT Tea product


Branded product 25 25%

Quality product 20 20%

Affordable product 55 55%

Available product 10 10%

other benefits 3 3%

Total 100 100%


Branded product Quality product Affordable product Available product other benefits0

10

20

30

40

50

60


The graph shows that, majority of customers (55%) says that AVT Tea product has

affordable price and 25 respondents like the branded products of AVT Tea while 20 per

cent of respondents have perceived the quality. Since the availability of the product has

10% of respondents, the other benefits of the products have least percentage of 3%.



4.21.1 Showing overall effects of the brand associations of AVT Tea among homemakers.

Table 4.21.1: Overall effects of the brand associations of AVT Tea


Yes 66 66%

No 34 34%

Total 100 100%


Yes No0

10

20

30

40

50

60

70

Figure 4.21.1: Overall effects of the brand associations of AVT Tea

Perc

enta

ge


Interpretations

According to the bar chart 66% of respondents have fair knowledge about the

brand associations of AVT Tea, while 34% of respondents are still unacquainted with

the AVT Tea brand associations.



4.21.2 Showing the overall influence of brand associations of AVT Tea on customer’s brand preference

Table 4.21.2: The overall influence of brand associations of AVT on customers’ brand preference


Yes 54 54%

No 46 46%

Total 100 100%


Yes No42

44

46

48

50

52

54

56

Figure 4.21.2: The overall influence of brand associations of AVT on customers’ brand preference


Interpretations

According to the graph, the brand associations of AVT Tea which have influenced on

respondents’ brand preference accounts for 54%. However, the 46 per cent of

homemakers have no influence for AVT Tea brand associations on their brand

preference.



4.22 Showing the rating of AVT Tea products in terms of overall excellence

Table 4.22: Consumer overall Rating of AVT Tea

AVT Product Rating Frequency Percentage

5 Stars 18 18%

4 Stars 65 65%

3 Stars 17 17%

2 Stars 0 0

1 Star 0 0

Total 100 100%


5 Stars 4 Stars 3 Stars 2 Stars 1 Star0

10

20

30

40

50

60

70

Figure 4.22: Consumer overall Rating of AVT Tea


The chart shows that, 65 out of 100 respondents rated ‘four stars’ to the overall

superiority of AVT Tea. In addition to that another 18 homemakers ranked ‘five stars’

while 17 per cent accounts for ‘three stars’. The homemakers didn’t rate two stars and

‘single star’ which indicate that, AVT has moderate level of excellence in their brand

category.



CHI-SQUARE TEST FOR DATA ANALYSIS

4.23 Showing chi-square test for testing association between brand associations and brand preference.

Ho: There is no relationship between brand associations and brand preference

among homemakers

Ha: There is a relationship between brand associations and brand preference among

homemakers.

Table 4.23.1: Showing 2X2 contingency table of brand associations and brand preference among homemakers.


Chi-square (χ2) equation is expressed as,

χ2 = ∑ (O−E)2

E

Where, O = Observations

E = Expected Frequency = R ow Totals× C olumn Totals

Grand Total


2X2 contingency tableBrand associations

Row TotalsEffected Not effected

Brand

preference

Influenced 42 12 54

Not influenced 24 22 46

Column Totals 66 34 100 (Grand Total)


Table 4.23.2: Showing chi-square test for testing relationship between brand associations and brand preference.

Observations

(O)

Expected Frequency

(E)

(O-E)2 (O−E)2

E

42 35.64 40.44 1.13

24 30.36 40.44 1.33

12 18.36 40.44 2.2

22 15.64 40.44 2.58

100 7.742


Critical region = (r – 1) (c – 1) R= number of row C= number of column

Degrees of freedom = (2– 1) (2 – 1) = 1

χ2 Table value at Level of significance 5% = 3.841

Interpretation

Here calculated chi-square value is greater than the table value. Hence neglect Ho.

That is, there is a relationship between brand associations and brand preference among

homemakers.

CORRELATION TEST FOR DATA ANALYSIS Jai Bharath school of management studies 79

Chi-square 7.742

Dof (1,0.05) 3.841


4.24 Showing correlation test for testing the relationship between perceived quality of AVT Tea products and quantity of purchase among homemakers.

Ho: There is no relationship between perceived quality of AVT Tea products and


Ha: There is a relationship between perceived quality of AVT Tea products and


Let X be the perceived quality of AVT Tea products.

Let Y be the quantity of purchase among home makers.

Table 4.24: Testing the relationship between perceived quality of AVT Tea products and quantity of purchase among homemakers.

Respondents (n) ∑X ∑Y ∑XY ∑X2 ∑Y2

100 441 357 1616 1995 1323

(Source: MS Excel data analysis)

Coefficient of correlation (r) equation is expressed as,

r = n∑ XY −¿¿¿

Substituting the values in the above equation, we get r = 0.8437.

Interpretation

Here the correlation coefficient indicates a highly positive correlation of 0.8437;

hence perceived quality and quantity of purchase among homemakers are associated

with each other. That is, increase in perceived quality of AVT is associated with an

increase in the quantity of purchase among homemakers.

4.25 Showing correlation test for testing the relationship between overall excellence of AVT Tea products and brand loyalty of AVT Tea among home makers.



Ho: There is no relationship between overall excellence of AVT Tea products and


Ha: There is a relationship between overall excellence of AVT Tea products and brand

loyalty of AVT Tea among home makers.

Let X be the overall excellence of AVT Tea products.

Let Y be the brand loyalty of AVT Tea among home makers.

Table 4.25: Showing correlation test for testing the relationship between overall excellence of AVT Tea products and brand loyalty

Respondents ( n ) ∑X ∑Y ∑XY ∑X2 ∑Y2

100 400 434 1786 1634 1990

(Source: MS Excel data analysis)

Coefficient of correlation (r) equation is expressed as,

r = n∑ XY −¿¿¿

Substituting the values of ∑X, ∑Y, ∑XY, ∑X2, and ∑Y2 in the above equation, we get

r = 0.8311.

Interpretation

Here the correlation coefficient indicates a highly positive correlation of 0.8311,

hence overall excellence and brand loyalty of AVT Tea are associated with each other.

That is, increase in overall excellence of AVT Tea products is associated with an

increase in the brand loyalty of AVT Tea.

5.1 FINDINGS



1. Customers of AVT Natural Products are highly loyal to the brand, which show its

ability to meet customer’s needs. Most of the customers of AVT tea have an

experience with the company for more than 4 years (Table 4.1 and figure 4.1).

2. The most popular brand of AVT Tea is AVT premium Tea which has the highest

percentage of customers as compared to other brands of AVT Tea (Table 4.2 and

figure 4.2).

3. The most popular Tea brands are AVT Tea and Kannan devan Tea; they have 43%

and 38% of customers respectively. This shows the competition between AVT Tea

and Kannan Devan (Table 4.3 and figure 4.3).

4. The most popular benefit of AVT Tea is their perceived quality (39%) over its

competitors (Table 4.4 and figure 4.4).

5. The majority of the AVT Tea customers are equally influenced by discount offers

(31%) and gift coupons (31%) (Table 4.5 and figure 4.5).

6. According to the survey, 43 out of 100 respondents are ‘self’ motivated and 40%

are promoted by media advertisements of AVT Tea as compared to its rival brands

(Table 4.6 and figure 4.6).

7. 55 per cent of respondents are ‘highly satisfied’ on the perceived quality of AVT

Tea over their rivals while ‘less satisfied’ and ‘not satisfied’ account for zero

(Table 4.7.1 and figure 4.7.1). Majority of the customers purchase ‘medium

quantity’ of AVT Tea every month (Table 4.7.2 and figure 4.7.2).

8. A highest percentage (64%) of respondents are would like to purchase the AVT

Tea in future (Table 4.8 and figure 4.8).



9. Majority of homemakers are familiar with brand quality (27%) and brand

associations (26%) of AVT Tea (Table 4.9 and figure 4.9).

10. AVT Tea brand associations like AVT group, AVT tagline, discount coupon,

acceptability and affordability have ‘excellent’ influence on the homemakers,

while South Indian giants and availability are rated as ‘average’.

11. Perceived quality has the major influence on the customer attractiveness to AVT

Tea products (Table 4.11 and figure 4.11).

12. 33 per cent of respondents ranked the quality as major parameter for their brand

preference (Table 4.12 and figure 4.12).

13. Quality has inspired the brand preference and it becomes an important attribute of

the AVT Tea (Table 4.13 and figure 4.13).

14. A highest percentage of 60 respondents declare that AVT Tea ‘certainly’ has brand

quality uniqueness (Table 4.14 and figure 4.14).

15. Almost half percentages of respondents have felt that AVT has ‘good’ quality

guarantee which shows the acceptance of the product within the customer group of

AVT NPL (Table 4.15 and figure 4.15).

16. A highest percentage of 70 respondents are willing to pay price for premium,

whereas others are not ready to buy the premium products of AVT Tea (Table 4.16

and figure 4.16).

17. Majority of homemakers needed changes such as, more promotions (39%) and less

price (35%) (Table 4.17 and figure 4.17).

18. 55% homemakers are would like to purchase the brand extensions of AVT Tea




19. When awareness is generated in the way of questionnaires, 59% of respondents

would like to recommend the products, while 41% of respondents would not like

to recommend AVT Tea products to others (Table 4.19 and figure 4.19).

20. Majority of customers (55%) say that AVT Tea has ‘affordable price’ in current

Tea market (Table 4.20 and figure 4.20).

21. The feedback about the Survey indicates that 66% of respondents have affected by

the brand associations of AVT Tea (Table 4.21.1 and figure 4.21.1).

22. The brand associations of AVT Tea which have influenced on respondents’ brand

preference accounts for 54% (Table 4.21.2 and figure 4.21.2).

23. 65 per cent of respondents rated ‘four stars’ to the overall superiority of AVT Tea


24. The brand associations of AVT Tea turn to be a right initiative of the company to

meet that part of the brand preference among customers. That is there is a

relationship between brand associations and brand preference among customers of

AVT Tea. (Table 4.23.2).

25. The perceived quality of AVT Tea products and quantity of purchase are

associated with each other. That is, increase in perceived quality of AVT is

associated with an increase in the quantity purchase among homemakers (Table

4.24).

26. The correlation coefficient indicates a highly positive correlation hence overall

excellence and brand loyalty of AVT Tea are associated with each other. That is,

increase in overall excellence of AVT Tea products is related with an increase in

the brand loyalty of AVT Tea (Table 4.25).



5.2. SUGGESSTIONS

Advertisement is an important promotional activity that can influence on the

homemakers. Nowadays AVT is not much concentrating on advertisements, so

much more efforts should be made to advertise the product.

Since AVT Tea has majority of customers, the brand has tight competition with

Kannan devan Tea brand. Therefore, it is essential for the management to take

effective strategies to increase the brand preference in future.

It is very clear that AVT premium Tea has the highest percentage of customers as

compared to other brands of AVT Tea. So marketing promotions should be

implemented accordingly to strengthen other Tea brands of the company.

AVT tea has failed to execute the marketing promotions of the sub brand ‘AVT

Manalaroo’. Hence awareness and advertisements should reach to the targeted

customers in order to increase the sale of the brand

The company management should have to provide better incentives and trainings

to the retailers because retailers have no influence on the purchase behavior of

customers.

Promotional activities of AVT Tea are comparatively less. Other competitors are

trying to incorporate new ideas to withstand in the industry, so it has become a

criterion to focus on promotional activities.

Homemakers should get awareness regarding the new technologies and

innovations provided by the AVT NPL such as premium bags, wending machines

etc.



5.3. CONCLUSION

AVT Natural Products ltd. is a market leader in the South Indian black tea

industry, which having its major share in the international and domestic market.

This project helps to find out the influence of AVT brand associations and how

much the consumers are satisfied with their brand preference of AVT Tea. It finds

the acceptance of the tea product in the existing group of customers and its reach

into the prospective group of homemakers.

AVT is having high brand preference among homemakers. Most of the

customers are interested in using branded tea. Homemakers brand preference

represents a fundamental step in understanding the brand associations. Brand

associations have a significant impact on brand preference. House engineers are

aware of the AVT tea because of the brand associations such as AV Thomas,

perceived quality, affordability, discount coupons and the tagline: Strongest Tea,

consistently. They have created brand preference in the minds of the homemakers.

According to the survey, the most popular Tea brand is AVT Tea and it is followed

by Kannan devan. This shows the increasing competition between AVT Tea and

Kannan Devan. However, the most popular brand of AVT Tea is AVT premium Tea

which has the highest percentage of customers as compared to other brands of AVT

Tea.

Promotional activities of AVT Tea are comparatively less. Other competitors

are trying to incorporate new ideas to withstand in the industry, so it has become a

criterion to focus on promotional activities. The perceived quality of AVT Tea

products and quantity of purchase are associated with each other. Similarly, overall

excellence and brand loyalty of AVT Tea are also associated with each other. The

brand associations of AVT Tea turn to be a right initiative of the company to meet

that part of the brand preference among customers. The research concludes that

there is an association between brand associations and brand preference among

customers of AVT Tea.



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WIBLIOGRAPHY

www.avtnatural.com

http://en.wikipedia.org/wiki/buyer_decision_processes

www.techneau.org/fileadmin/files/publication/publication/.../D6.2.1.pdf


avt project soft copy

Documents

brand preference of

avt tea products

particular brand of

consumers of avt tea

avt tea powders

favoured brand

instant tea

green tea