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ASUMMER INTERNSHIP PROJECTONA STUDY ON BRAND PREFERENCE FOR PACKED MILK AMONG URBAN CONSUMERSubmitted toS.R. LUTHRA INSTITUTE OF MANAGEMENT IN PARTIAL FULFILLMENT OF THEREQUIREMENT OF THE AWARD FOR THE DEGREE OFMASTER OF BUSINESS ADMINISTRATIONInGujarat Technological UniversityUNDER THE GUIDANCE OF

Faculty Guide : Company GuideMr. Harshesh Patel Mr. Suresh Bhai

Submitted by

Mr. PUROHIT KAILASH KUMAR [Batch No. 2015-17, Enrollment No. 158050592080]MBA SEMESTER IIIS.R. LUTHRA INSTITUTE OF MANAGEMENT 805MBA PROGRAMMEAffiliated to Gujarat Technological UniversityAhmadabadJuly, 2016

EXECUTIVE SUMMARY

The research is about A STUDY ON BRAND PREFERENCE FOR PACKED MILK AMONG URBAN CONSUMERS. Main objective of the study is to know brand preference for packed milk. Founded in the year at Rajkot (Gujarat, India ),we Maahi milk producer company limited is a leading manufacturer traderandsupplierof the best classMilk Powder, Pure Ghee, Fresh Milk, Fresh Curd, Fresh Sweet and Fresh Butter. Since our inception, we are private Limited Companyand undertake the business of pooling, purchasing, processing of milk and milk products primarily of the Members and also of others, marketing of the same and to deal in activities that are part of or incidental to any activity related there.

Continues . In this research study descriptive research design was selected using non-probability convenience method of sampling. 200 samples were selected from the population. The data collection tool was structured questionnaire. It uses primary data and secondary data for industry profile and literature review. In this research study data analysis was made by using charts, percentage. Also statistical techniques one way ANOVA was used to test hypothesis. Among the total respondents half of them were consuming packed milk and the rest prefers loose milk. It was found that milk availability and quality were good in packed milk according to respondents. In other hand respondent likes packed milk than loose milk and their first preference also.

INTRODUCTIONBrand A brand is a distinguishing symbol, mark,logo, name, word, sentence or a combination of these items that companies use to distinguish their product from others in the market. Legal protection given to a brand name is called aTrademark.

Brand preference

Brand preference reflects a desire to use a particular company's product or service even when there are equally-priced and equally-available alternatives. In fact, more often than not, brand preference indicates a desire to seek out a specific product or service even when it requires paying more or expending more effort to obtain it! Brand preference is important to companies because it provides an indicator of their customers' loyalty, the success of their marketing tactics, and the strength of their respective brands. There has been a long standing interest from marketers to understand how consumers form their preferences toward a specific brand. Brand preference is closely related to brand choice that can facilitate consumer decision making and activate brand purchase. Knowing the pattern of consumer preferences across the population is a critical input for designing and developing innovative marketing strategies

A CONCEPTUAL FRAMEWORK FOR BRAND PREFERENCE Based on the preceding discussion, a conceptual model is developed that links brand experience and brand preference. It considers the basic antecedents of brand preference and the direct or indirect impact of brand experience on brand preference. The proposed model has five constructs: the brand experience , brand associations, brand personality , human personality, and brand personality (figuer1.1)

A CONCEPTUAL FRAMEWORK FOR BRAND PREFERENCE Based on the preceding discussion, a conceptual model is developed that links brand experience and brand preference. It considers the basic antecedents of brand preference and the direct or indirect impact of brand experience on brand preference. The proposed model has five constructs: the brand experience , brand associations, brand personality , human personality, and brand personality (figuer1.1)

Figure No: 1.1Figure Name: Brand Preference Of Process

STRATEGIES TO INCREASE BRAND PREFERENCE

Branding One of the most critical and basic long-term objectives of marketing is to brand your company or product. This is the use of promotional techniques to create a particular reputation that resonates with target customersResearch One of the most critical and basic long-term objectives of marketing is to brand your company or product. This is the use of promotional techniques to create a particular reputation that resonates with target customers. Lexus has developed itself as a luxury and status car brand for people with upper-middle to upper class incomes. Target is a value-oriented retailer of fashion, apparel and home goods. Wal-Mart has built its brand on low pricesCont..

Emphasize Benefits Turning a habitual or routine buyer into an emotionally attached, loyal customer with a strong brand preference is largely based on the customer's sense of value. Understanding your target market's preferred product or service features and benefits helps you optimize your offering and promote a product concept that meshes with the market's interest. As a premium coffee shop, for instance, your customers may prefer benefits such as taste quality, premium coffee beans, and fast customer service.Engagement "Engagement" has become a hot buzz word in early 21st century brand development. This is the use of more direct, interactive forms of communication with customers. Personal selling, email and and telemarketing are common, traditional forms of interpersonal communication. Social media, such as Twitter and Facebook, have significantly broadened the concept and importance of brand engagement. Customers move quickly and exchange experiences with others in these real-time social venues.

DAIRY INDUSTRY AT GLOBAL LEVEL

the global dairy industry is expected to reach USD 505 billion by 2017at a compound annual growth rate (CAGR) of 5 percent. it is also expected that milk volumes in the period will more or less grow at the same rate. milk, cheese, and yogurt are major segments of the global dairy market, and will account for a major share of the dairy produce. the cheese and yogurt segment is touted to grow at a slightly faster pace than the traditional categories, primarily due to the increased demand from emerging markets. the developed markets of USA and western Europe hold the largest share of the global dairy market, while brazil and the apac countries considered as emerging dairy markets have the highest market growth rate in the coming years. these emerging markets are the major drivers for dairy market expansion. the demand for dairy products in these markets will continue to grow, driven by population growth, rising income levels, urbanization, and change in dietary patterns, especially in developing countries such as china and India. however

DAIRY INDUSTRY IN INDIA

India is the largest producer and consumer of milk in the world. The Indian dairy sector is characterized by a very large number of small herds. Production of milk from buffaloes exceeds that of cows, which are considered sacred by Hindus. India has an extensive government supported dairy cooperative structure. Milk from the small herds is collected by the cooperatives with centralized cooling facilities and transported to the end-users in urban centers. Most of the milk produced (over 80%) is distributed as liquid milk for home consumption or manufacturing of traditional products like ghee, paneer and mithais. From burfi to kulfi, from kalakhand to shrikhand, from yogurt to ice creams extend the delectable world of Indian milk delicacies India surpassed the US in 1998 with a production of 92 million tonnes to become the largest milk producing country in the world. In 2006, India's milk production crossed 100 million tonnes, representing 15% of world milk.

DAIRY INDUSTRY IN GUAJRAT Dairy industry has developed on co-operative lines in Gujarat and it has shown the way of developing dairy industry on co-operative lines to other states. In our country, however the milk producer co-operative got momentum in Gujarat, with the organization in 1946, of the Kaira District Co-operative Milk Producers Union Ltd. (KDCMPUL) is called Amul Dairy situated at Anand. Since, then district followed this pattern of organizing with co-operative in Gujarat particular, and across the country.

Continues .Milk Producers' Unions In Gujarat

1. Kaira District Co-operative Milk Producers' Union Ltd., Anand 2. Mehsana District Co-operative Milk Producers' Union Ltd, Mehsana 3. Sabarkantha District Co-operative Milk Producers' Union Ltd., Himatnagar 4. Banaskantha District Co-operative Milk Producers' Union Ltd., Palanpur 5. Surat District Co-operative Milk Producers' Union Ltd., Surat 6. Baroda District Co-operative Milk Producers' Union Ltd., Vadodara 7. Panchmahal District Co-operative Milk Producers' Union Ltd., Godhra 8. Valsad District Co-operative Milk Producers' Union Ltd., Valsad 9. Bharuch District Co-operative Milk Producers' Union Ltd., Bharuch 10. Ahmedabad District Co-operative Milk Producers' Union Ltd., Ahmedabad 11. Rajkot District Co-operative Milk Producers' Union Ltd., Rajkot 12. Gandhinagar District Co-operative Milk Producers' Union Ltd.,

PESTEL ANALYSIS IF DAIRY INDUSTRY Political Factor The dairy sector in India has traditionally been highly regulated. The government projects and programs in place for enhancing dairy development include subsidies for developing infrastructure for milk processing and testing. The Clean Milk Production Programs is a centrally sponsored scheme that is being implemented by the State Department of Animal Husbandry. Economic The most obvious economic factor affecting the dairy industry would purchasing power in the economy as a whole. Milk and its most basic form is considered an essential product and people still make an effort to purchase milk regardless of their cash position. As a result, the sales of milk would not be significantly hit in case of a reduction in a family income, Increase in purchasing power however can lead to an increase in the acquisition of pets such a dogs and cats and their spending on these pets will increase.

Sociological

A social factor that could affect the dairy industry is growing concerns over halal food in regions where Muslims are in a majority. This is because Muslims don't consume products that they don't believe to be halal, so if a dairy product manufacturer is considering to expand into a Muslim-Majority region it must take care of this issue before it considers entering such a market. Technological Technology has made it possible for dairy manufacturers to market several different kinds of dairy products, along with several variants of these products at a very low cost. A main factor in the upward trend of the dairy industry has been the pace with which technological advances have been embedded into farming practices,

Environmental

The dairy industry is heavily dependent on the health and availability of livestock. Plagues, epidemics and other diseases affecting the livestock, more specifically cattle, will reduce the quality of milk and supply will be adversely affected if the livestock is killed off. Legal most countries require all food and beverage manufacturers, including dairy manufacturers, to display complete nutritional information of all their products very clearly on the product labels. This includes calorie counts, serving sizes, number of servings per container as well as nutrient information.

MAJOR OFFERING OF DAIRY INDUSTRYThe Product RangeCheese,Flowerer MilkMaahi CoolDrink HealthMaahi Dahi Maahi chaasMaahi cow GheeMaahi Sweet Maahi Milk

ABOUT MAAHI MILK Founded in the year2013atRajkot (Gujarat, India), weMaahi Milk Producers Company Limited are a leadingmanufacturer, traderandsupplierof the best classMilk Powder, Pure Ghee, Fresh Milk, Fresh Curd, Fresh Sweet and Fresh Butter. Since our inception, we are private Limited Companyand undertake the business of pooling, purchasing, processing of milk and milk products primarily of the Members and also of others, marketing of the same and to deal in activities that are part of or incidental to any activity related thereto. We have established a well functional and spacious infrastructural unit where we process milk and milk products in large quantity. We are committed to supply safe and high quality milk and milk products to satisfy our customers.

SWOT ANALYSISStrengthsMaahi Dairy Limited employees are very helpful for distributionStrong market presence.Best quality of goods.WeaknessesQuality of Milk is not maintained at times.Distributors are not satisfied sometimes for scheduling time to time delivery. OpportunitiesMaahi Milk Limited has opportunities to launched new product in the market like butter, cheese, pannier, Ice-creams, sweet etc. Maahi Milk launched new product in market recently Flavoured Milk.ThreatsHighly competitive market against local and Indian market.

REVIEW OF LITERATURE Anjali Sharma,Shruti ,Bhola,ShwetaMalyan and NehaPatni (2013) study was carried out to find out the brand preference and its impact on buying behavior of women consumer for beauty care products in Delhi region. They have focused that the buying behavior of consumer in relation to beauty products. The found that the brand ambassadors are least measured when they purchase beauty care products and price and brand image of products are two majorly elected features affecting their preference for selecting a particular brand. Aaker (1991) carried study on particularly interesting about brand preferences. While defined about the brand preferences, a series of three experiments showed good empirical results for the proposed structural model. Accordingly consumers' brand attitude is more favorable and their intentions to view the ad again and purchase are enhanced. For the affective route, the positive affect engendered upon viewing creative ads affects downstream ad processing and response variables by (1) indirectly affecting consumers' desire to postpone closure (2) directly transferring to brand attitude and intention to view the ad again

Continues Rangarajan et al (1980) analyzed the economics of milk production from cross-breed cows and nondescripts in terms of yield, cost of milk production. The main finding of the study was that cross breeds forced for better than local ones in all the aspects Boopathiraj (2005) concluded that the satisfaction of the members could be increased by making arrangement for the members to visit different leading and successful performance of milk producers co-operative societies. Elumalai (2005) analyses that India had revealed comparative advantage to export milk powder and butter in the market of SAARC countries. At the global level, India had comparative disadvantage in the export of milk powder, butter, cheese and curd. Jesse Edward et al (2006) discussed that Indias main system of dairy productions involves a smallholder production system in which most of the milk produced is consumed on the farm or distributed through informal

Continues Paul N. Bloom (2006) The authors used a market-research technique called conjoint analysis to help managers evaluate the relative benefits of various types of affinity marketing programs, including sponsorship of social causes, sports or entertainment events. Conjoint analysis involves creating a variety of hypothetical brand profiles that contain combinations of brand attributes; by asking consumers to rank the profiles, researchers can gain insights into how different brand attributes affect consumers preferences. In several experiments, the authors used conjoint analysis to examine how consumers responses to a brand of beer, milk or juice would be affected if the brand had a marketing affiliation with a social cause or with a sport or entertainment event Ravichandran.and G. Arumugasamy (2013) the researcher indicated it is a positive sign for Local and National brands. They can promote their products by effective advertising, improved quality and by keeping a check on the price. (C. Jothi Mary 2013) said that marketing concept starts with the consumer needs and behavior in meeting these needs. Therefore every person depends on basic needs. The real problem is to learn what a customer takes into consideration when he chooses a particular brand. Such a study is concerned with consumer behavior

PROBLEM STATEMENT

Brand preference is an attempt to understand and predict human action is buying decision. This action can play great role. To know the factors which affect Maahi as selecting brand and understanding consumers having problem of brand preference again its competitors. Packed milk dairy industry in India is fastest growing and expanding. Hence, the research is undertaken as A study brand preference packed milk among urban consumer in Maahi milk.

RESEARCH OBJECTIVE To study the factors infusing preference of packed milk among urban consumers To analyze the reason for shifting from loose milk To measure satisfaction on packed milk in comparison with loose milk urban consumer To analyze reason for preference packed milk To know preference among brand of packed milk of urban consumer To evaluate the experience of usage current brand of packed milk To know reason for buying loose milk

SOURCES OF DATA COLLECTION

This study uses both primary and secondary data. Primary data were collected from the respondents via questionnaire. Secondary data collected from various secondary sources like websites, and research articles. DATA COLLECTION METHOD Generally there are two types of data collection and they are: Surveys: Standardized paper-and-pencil or phone questionnaires that ask predetermined questions. Focus groups: Structured interviews with small groups of like individuals using standardized questions, follow-up questions, and exploration of other topics that arise to better understand participants This study uses Survey as the method of data collection from the respondents. DATA COLLECTION TOOLThis study uses Structured Questionnaire as the tool of data collection.

RESEARCH DESIGN

A Research design is purely and simply the framework of plan for a study that guides the collection and analysis of data. study brand preference packed milk among urban consumer . The study design is descriptive in nature. There are three major types of research design: Descriptive and effect research design. Descriptive Research Design Descriptive study is a fact-finding investigation with adequate interpretation. It is the simplest type of research and is more specific. Mainly designed to gather descriptive information and provides information for formulating more sophisticated studies. This study uses Descriptive Research Designas its fact finding investigation which deals with answer of questions like what, why, when, and where, etc It provides descriptive information relevant to study.

SAMPLING PLAN

Population: All the people who live in Surat city using packed milk are part of population of the study. Sampling Technique: this study uses non-probability, convenience sampling method.

Sample Size: 200 sample sizes selected for this study.

TOOL FOR ANALYSIS

This study uses Simple Percentage, ANOVA, with the help of SPSS as software package for the analysis of data. LIMITATIONS OF THE STUDY

The analysis has been carried out based upon the information collected from the respondents. Samples may not be true representatives of population. The results of study applies more specially to the packed milk consumers in Surat city and cannot be generalized for other area. Respondents may provide biased information cannot reflect true results.

Personal ProfileAgeRespondents18-25years7025-40years10740-60years20More than 60 years3GenderRespondentsMale145Female55EducationRespondentsUndergraduate104Graduate44Post graduate52Annual income Respondentsless than,1,00,000591,00,000-3,00,000413,00,000-5,00,00071more than 5,00,00029

Do you buy packed milk? [ ] Yes [ ] No

Which size of packed milk do you buy daily?[ ] 250 ml[ ] 500 ml[ ] 1 lit.[ ] more than 1 lit.

Which of following factor did you considered as important while buying packed? [ ] Milk quality[ ] Thickness[ ] Milk taste [ ] Milk availability[ ] Packaging[ ] Milk price

Have you ever consumed loose milk? [ ] Yes [ ] No

If yes, state reasons for shifting from loose milk to packed milk:

[ ] Poor quality [ ] Inconsistent quality [ ] Price do not justify the quality [ ] Better alternatives available [ ] Lack of standardisation (B.F, SNF, HTST, UHT)

Sr. No.ParticularsPacked MilkLoose Milk54321543211Milk availability2Milk quality3Milk taste4Standardisation(SNF,BF)5Price against offering6No bacteria

Rate your level of satisfaction of using packed milk and loose milk on following criteria and scale?(5-highly satisfied, 4-satisfied, 3- neutral, 2- dissatisfied, 1- highly dissatisfied)

Level of satisfaction of packed milk (%)

Level of satisfaction of loose milk (%)

The following statement describes your preference for packed milk, rate on following scale:Sr. No.ParticularsNo of respondents543211I like packed milk than loose milk.2I preferred packed milk than loose milk.3I would use packed milk than loose milk.4When it comes to making a purchase packed milk is my first preference.5When it comes to making a purchase packed milk is my first preference.

Which of following brand of packed milk that you have purchase?[ ] Amul /Sumul[ ] Maahi milk[ ] Rajhans milk[ ] Sataral milk[ ] Dudhsagar[ ] Saras

Circle the number which describe since how long you are buying packed milk (In year)? 1 2 3 4 5 6 7 8 9 10+

Rate your preference for following packed milk brand on following scale:(5-most preferred, 4-preferred, 3-neutral, 2-least preferred, 1-not preferred

Rate the following statement that describes your purchase experience of packed milk on following scale:

How likely are you ready to buy packed milk in future?[ ] Very likely[ ] somewhat likely[ ] Neutral[ ] somewhat unlikely[ ] Very unlikely

HYPOTHESIS TESTING BY USING ONE WAY ANOVASignificant difference between annual income and packed milk

ParticularGroupsSum of SquaresdfMean SquareFSig.milk availabilityBetween Groups1.4013.467.543.653Within Groups126.374147.860Total127.775150milk qualityBetween Groups1.6543.551.696.556Within Groups116.518147.793Total118.172150milk tasteBetween Groups.3483.116.103.958Within Groups165.0821471.123Total165.430150standardisationBetween Groups1.8543.618.476.700Within Groups189.6391471.299Total191.493150price of against offeringBetween Groups3.74831.249.766.515Within Groups239.6951471.631Total243.444150no bacteriaBetween Groups7.30232.4341.152.330Within Groups310.4471472.112Total317.748150

H0 : There are no difference in packed milk of consumer users belonging to different annual income .H1 : The packed milk of users belonging to at least one annual income different

45

Significant difference between preference for packed milk and educational qualification

ParticularGroupsSum of SquaresdfMean SquareFSig.I like packed milkBetween Groups.6752.337.387.680Within Groups128.994148.872Total129.669150I preferred packed milkBetween Groups.1652.082.148.863Within Groups82.643148.558Total82.808150I would use packed milkBetween Groups1.0602.530.405.668Within Groups193.6951481.309Total194.755150when it comes to makingBetween Groups.3462.173.136.873Within Groups188.0111481.270Total188.358150I preferred to my anyBetween Groups23.188211.5946.906.001Within Groups248.4811481.679Total271.669150

H0 = There is no difference in preference for packed milk consumer belonging to different H1 = The of in preference for packed milk consumer using to at least one of group is preference for packed different

Findings

It was found from the study that Majority (75%) of the respondents were buying packed milk It was found that 44% of respondents were consuming 500ml packed milk. It was found that majority 91% of the respondents were influenced by factors milk quality for buying the packed milk. It was revealed that 50% of the respondents consumed loose milk. It was found that 35% respondents has stated the reason as price do not justify the quality of milk for shifting from loose milk to packed milk. It was revealed that Majority 57% respondents were highly satisfied with milk availability and 2% respondents were dissatisfied with the same. It was found that 70% of the respondents were strongly agreed for more preference towards amul packed milk than rest of the milk company, 2% respondents were disagree to the preference for packed milk. It was revealed that 28% of the respondents were purchasing Amul/sumul brands of packed milk It was found that 26% of the respondents were buying packed milk from 7 years It was revealed that 41% of the respondents were using current brand Amul/sumul.

CONCLUSIONS

The study Brand Preference of Milk among urban consumer determines how far the consumers are satisfied with the overall performance of the branded packed milk producers. Now the dairy industry is facing tremendous competition and many private companies enter into this field. In order to sustain in the market by giving better service, a company should always try to find out the satisfaction level of the consumers and should take all necessary steps and measures to retain the customers. It can be concluded from the study that respondents stated most important factors milk quality and milk availability of buying packed milk. The level of satisfaction is highly satisfied price against offering and milk availability using packed milk and loose milk. They were strongly agreed that they liked packed milk than loose milk. The study found that respondents preferred Amul/Sumul brand of packed milk.

Recommendations

Majority of the respondents said that the quality of the products will makes them to purchase the packed milk consistently. So the companies should consider the quality of the packed milk.It was found that majority of respondents stated that while buying packed milk quality, and milk availability factors are important. Hence, it is recommended that company should match quality standards with leading brands in industry and also improve its availability in market. It was also found that respondents were not suing packed milk because of reasons like better quality in loose milk, quality at its best price. Hence, it can be recommended to company that company can improve it quality and offered it at affordable prices

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