project of surya foods

8/13/2019 Project of Surya Foods

1/56

CONSUMER BEHAVIOUR TOWARDS THE NEW BRAND IN

THE FOOD INDUSTRY MARKET-THROUGH SURYA FOOD

AND AGRO PVT LTD, HYDERABAD


2/56

CONTENTS

CHAPTER TITLES PAGE NO.

LIST OF TABLES

LIST OF CHARTS

I

INTRODUCTION

PROFILE OF THE COMPANY

NEED FOR THE STUDY

1

2

9

II REVIEW OF LITERATURE10

III OBJECTIVES OF THE STUDY17

IV RESEARCH METHODOLOGY18

V DATA ANALYSIS AND INTERPRETATION 22

VIFINDINGS OF THE STUDY,

SUGGESTION AND RECOMMENDATIONS

37

38

VII CONCLUSION 39

VIIILIMITATIONS OF THE STUDY

SCOPE FOR THE FUTHER STUDY

40

41

APPENDICES

ANNEXURE-1

ANNEXURE-2

42

44


3/56

LIST OF TABLES

TABLE NO. NAME OF THE TABLE PAGE NO.

5.1.1 PRIYA GOLD BISCUITS CONSUMED 22

5.1.2 CONSUMPTION PRIYA GOLD BISCUITS UNDER SEX 23

5.1.3 CONSUMPTION BASED ON OCCUPATION 24

5.1.4 CONSUMED BASED ON OCCUPATION 25

5.1.5 SELECTING BRAND 26

5.1.6 TRUE CONSUMED BASED ON AGE 27

5.1.7 NO. OF TRUE BISCUIT CONSUMED 28

5.1.8 TRUE BISCUIT KNOWN FROM 29

5.1.9 TRUE BISCUIT BASED ON PRICE 30

5.1.10 ALTERNATIVE 31

5.1.11 TRUE BISCUIT CONSUMED UNDER 32

5.1.12 NO. OF FLAVOR 33

5.1.13 SUGGESTION 34

5.2.1 LEVEL OF SATISFACTION 35


4/56

LIST OF CHARTS

CHART NO. NAME OF THE CHART PAGE NO

5.1.1 PRIYA GOLD BISCUITS CONSUMED 22

5.1.3 CONSUMPTION BASED ON OCCUPATION 24

5.1.5 SELECTING BRAND 26

5.1.8 TRUE BISCUIT KNOWN FROM 29

5.1.9 TRUE BISCUIT BASED ON PRICE 30

5.1.10 ALTERNATIVE 31

5.1.11 TRUE BISCUIT CONSUMED UNDER 32

5.1.12 NO. OF FLAVOR 33

5.1.13 SUGGESTION 34

5.2.1 LEVEL OF SATISFACTION 36


5/56

CHAPTER-I

INTRODUCTION

The term consumer behavior is defined as the behavior that consumers display

in searching for purchasing, using, evaluating and disposing of products and services

that they expect will satisfy their needs. Consumer behavior focuses on how

individuals make decisions to spend their available resources (time, money, effort) on

consumption related items. That includes what they buy, why they buy, when they

buy it, where they buy it, how often they buy it for purchase and the impact of such

evaluations on future purchases, and how they dispose of it.

Consumer behaviour is the study of how people buy, what they buy, when

they buy and why they buy. It blends elements from psychology, sociology, socio

psychology, anthropology and economics. It attempts to understand the buyer

decision making process, both individually and in groups. It studies characteristics of

individual consumers such as demographics, psychographics, and behavioral variables

in an attempt to understand people's wants. It also tries to assess influences on theconsumer from groups such as family, friends, reference groups, and society in

general.

The process of consumption has long been associated with sex and gender, thus, it

comes as no surprise that consumer researchers often examine the effects of these

variables on consumer behaviors. It also comes as no surprise that much is known

about sex and gender and how they impact buying and consuming activities. Yet there

is one gender-related variable, gender identity that has both intrigued and perplexed

consumer behavior researchers for over four decades


6/56

NEED FOR STUDY

A study of consumer behavior in SURYA FOODS AND AGRO PVT LTD

(Priya Gold Biscuits) for special purpose of to know about the consumer behavior for

improve the product and marketing function for consumer satisfaction.

To know about how many people to get awareness of Priya Gold Biscuits. To find the competitors and analyze the methods for competiting in the

market.

To find the choice and which flavor is very well moving in market To find the Market Segment Priya Gold Biscuits To find the reasons for not willing to buy Priya Gold Biscuits

SCOPE OF THE STUDY

The project throws on the need for learning buying behavior for successfully

marketing.

The project was developed based on benefits of sales towards organization. It will be helpful for the management to identify the needs and benefits of the

consumer and to take decision to promote the marketing.

This project can be base for the students who are doing the project in the

related area and to the organization in viewing the worth of the consumer and

attitude of the buying decision making.


7/56

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE

To analyze the behavior of consumer towards the Priya Gold Biscuits.

SECONDARY OBJECTIVES

To find the awareness of people about Priya Gold Biscuits.

To analyze the various parameters that determines the choice of Consumer inPriya Gold Biscuits.

To offer suggestions to the Priya Gold Biscuits to improve its activities.

LIMITATIONS OF STUDY

The project area is Hyderabad only and Taking survey and alsodifficult in to find the Priya gold biscuits consumers.

Research has been done only to limited consumer so has to be expand

One of the important limitation is consumer behavior is changedaccording to their mind setting.


8/56

RESEARCH METHODOLOGY

RESEARCH

Research in common place refers to a search for knowledge. Research is defined as

systematic and scientific search for pertinent information on specific topic or area of study.

METHODOLOGY

Methodology is a plan of action for a research project and explains in detail how data

are collected analyzed and presented, so that they will provide meaning information.

RESEARCH DESIGN

A Research design is purely and simply the framework or plan for the guides the

collection and analysis of data.

It is the overall operational pattern or framework of the project that stipulated the

information to be collected, from which source and what procedures. A Research design

might be described as a series of advance decision that taken together from a specific master

plan or the model for the conduct of the investigation. Descriptive research is used in this

project.

DESCRIPTIVE RESEARCH

This type of research design is undertaken in many circumstances. When the

researcher is interested in knowing the characteristics of certain groups such as age, sex,

education level, Occupation or income etc. The Objective of such study is to answer the

Who, What, When, Where, and How of the subject under investigation, so in this project

study comes under descriptive research design.

RESEARCH INSTRUMENT USED

The questionnaire was found to be the most suitable type of research instrument to

collect data. It is important tool of the research; it is used to generate the raw data on which

findings were based.

QUESTIONNAIRE CONSTRUCTION

A questionnaire is an assembly of carefully formulated questions, designed to collect

facts and options from the respondents. Its an important tool of the research; it is used to

generate the raw data on which findings were based.


9/56

AIM OF THE QUESTIONNAIRE

To obtain accurate data. To make interview as interesting and stimulating. To be easily analysis. To facilitate efficient administration of information.

SOURCE AND COLLECTION OF DATA

The task of data collection begins after research problems have been defined and

research design chalked out. Data is the foundation for all marketing research. The

researchers can obtain data form.

Primary DataQuestionnaires are prepared and personal interview was conducted. Most

of the questions are consist of multiple choices. The structured interview method was

undertaken. The interview was conducted in English as well as in Telugu. Proper care

was taken to frame the interview schedule in such a manner it should be easily

understood in view of educational level of the consumers. Generally 22 questions are

prepared and asked to the consumers of the in the Hyderabad.

Secondary Data

Secondary data was collected from Internets, various books,

Journals, and Company Records.

SAMPLING PLAN

Due to cost and time involved in collecting the data from all the respondents, it

becomes a compulsion to choose representation. Sampling plan explains as under,

Sampling Unit:The sampling unit is who is to be surveyed? That is sampling unit is who are

all the respondent is called sampling unit. The sampling units for this study are customers

of Hyderabad.

Sampling Size:The sample size for this study is 100.

Sampling Method: Different types of sampling methods are available. In this studythe convenience sampling was selected for this research. This sampling method used

the principles of non-probability technique.


10/56

Area Of Sampling:The area of sampling was taken in Hyderabad.

STATISTICAL TOOLS

To arrange and interpret the collected data the following statistical tools were used.

Percentage Method. Weighted Average Method. Correlation Regression


11/56

INDUSTRY PROFILE

Biscuit industry contribute Rs 8,000 crore to the FMCG industry and provide a vast

opportunity for growth, as the per capita consumption of biscuits is less than 2.1 kg in

our country. India It is classified under two sectors: organized and unorganized.

Branded /Organized to Unbranded/Un organized market share of biscuit has been

70% for organized sector and 30% for unorganized sector. Apart from Big

3(Britannia, Parle, ITC ) there are around 150 medium to small biscuit factory in

India .

The Industry is now facing problem from increase of raw material price. WithGovernment VAT up to 12.5% has added to their woes .Biscuit consumption per

capita in India has grown to 2.1kg per capita in comparison to 10kg per capita

consumption in USA ,UK and Europe .

India Biscuits Industry came into limelight and started gaining a sound status in the

bakery industry in the later part of 20th century when the urbanized society called for

readymade food products at a tenable cost. Biscuits were assumed as sick-man's diet

in earlier days. Now, it has become one of the most loved fast food products for every

age group.

Biscuits are easy to carry, tasty to eat, cholesterol free and reasonable at cost. States

that have the larger intake of biscuits are Maharashtra, West Bengal, Andhra Pradesh,

Karnataka, and Uttar Pradesh. Maharashtra and West Bengal, the most industriallydeveloped states, hold the maximum amount of consumption of biscuits.

Even, the rural sector consumes around 55 percent of the biscuits in the bakery

products. The total production of bakery products have risen from 5.19 lakh tonnes in

1975 to 18.95 lakh tones in 1990. Biscuits contributes to over 33 percent of the total

production of bakery and above 79 percent of the biscuits are manufactured by the

small scale sector of bakery industry comprising both factory and non-factory units.


12/56

The production capacity of wafer biscuits is 60 MT and the cost is Rs.56,78,400 with

a motive power of 25 K.W. Indian biscuit industry has occupied around 55-60 percent

of the entire bakery production. Few years back, large scale bakery manufacturers like

cadbury, nestle, and brooke bond tried to trade in the biscuit industry but couldn't hit

the market because of the local companies that produced only biscuits.

The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright

future of India Biscuits Industry. According to FBMI, a steady growth of 15 percent

per annum in the next 10 years will be achieved by the biscuit industry of India.

Besides, the export of biscuits will also surpass the target and hit the global market

successfully.

Two Sectors of Biscuit Industry

In terms of volume biscuit production by the organized segment is estimated at 1.30

million tones. In the organized sector, the industry is dominated by Britannia and

Parle, which account for 70 per cent of the industry's volumes.

The two major organized players are Britannia and Parle. Britannias market sharestands at Rs 27 billion. Parle derives a large portion of its revenues from low-priced

biscuits. Parle-G and Britannia derive a fairly large share of their revenues from the

medium- and premium varieties.

In fact, Britannia's market share in the medium and premium varieties is significantly

higher. Other organized players include domestic players like Brakemans, Champion,

Kwality, Priya and MNCs like SmithKline Consumer, Kelloggs, Sara, Heinz,

Excelsia (Nestle) and United Biscuits.

The unorganized sector consists of small bakery units, cottage and household type

manufacturing their goods without much packaging and distributing their goods in the

surrounding areas. Lower overheads due to limited local area, family management,

focused product lines and less expenditure on marketing help the unorganized sector

to grow.


13/56

The organized biscuit manufacturing industrys annual production were around 1.1

million tons in 2003-04, 1.25 million tons in 2004-05, 1.4 million tons in 2005-06, 1.6

million tons in 2006-07 and 1.7 tons in 2007-08.

HISTORY OF BUSCUIT INDUSTRY

Biscuits are a very significant part of the food industry in most countries of the world.

A biscuit is a small baked product; the exact meaning varies markedly in different

parts of the world. The origin of the word "biscuit" is from Latin via Middle French

and means "cooked twice" (similar to the German Zwieback). Some of the original

biscuits were British naval hard tack.

That was passed down to American culture, and hard tack (biscuits) was made

through the 19th century.Biscuit can flourish in any environment where there is a base

population, in the immediate vicinity of the plant; a country with large population is

well suited for a biscuit plant. Biscuit is most suited for local production. This factor

alone has made India a big biscuit center. Biscuit Industry has flourished in India

enormously over the years and is still growing phenomenally.

This growth has funneled a growth of all facets of biscuit making in India. While the

modern India is considered a centre for software development, many do not realize

that one industry that has developed similar capabilities is Biscuit.

Today India can boast of being

Most cost effective and reliable biscuit machinery making center.

Most talented senior management and technical manpower pool for biscuit making.

Most number of biscuit production manpower and operating technicians manpower

Most reliable center for outsourcing manufacture of biscuits.

Most cost effective center for food testing laboratories.

Most cost effective and talented centre for product development, research and

formulation development


14/56

Present Status

1. Segments: The organized and unorganized sectors of the biscuit industry is inthe proportion Of 55%:45% ratio.

2. Exports of Biscuit is estimated to around 10% of the annual productionduring the year 2006-07.

3. Imports of biscuits into India has not shown any significant growth during thelast two years and has not affected production/sales by the Indian Biscuit

industry.

4. Marketing: Wholesale and Retail marketing in the Biscuit industry is carriedout with a network of C & F Agencies (for States and/specific Districts)

Dealers / Wholesalers and Retail shops.

5. Biscuit Industry, especially the Small & Medium Sector, consisting of around150 units(besides three Large Industries), are facing erosion in their

profitability and competitive capability, due to imposition of Value Added Tax

(VAT) by the State Governments @ 12.5% on Biscuits, compared to VAT oat

4% levied on other similar food products.

6. Taxation: On behalf of the industry, IBMA has been pursing the issue with theChief Ministers/Finance Ministers of all States and also with the Chairman of

the Empowered Committee on VAT, seeking reduction in the rate of VAT on

biscuit to 4%.

IBMA estimates annual growth in the range of 15% to 20% during the next

five years, in the event of reduction in the rate of VAT on Biscuits to 4%.

7. Per capita consumption of Biscuits in the country is only 1.8 kg, as comparedto 2.5 kg to 5.5 kg in South eastern countries and European countries & USA

respectively.

8. . Main Categories of Biscuits are broadly as under:Glucose, Marie. Sweet, Salty. Cream, & Milk


15/56

9. Popular Brands of Biscuits in the country are, Britannia, Parle, Priyagold,Anmol, Biskfarm, Dukes, Cremica, Priya, Veeramani, Bonn, Bhagwati, Raja,

BISCUIT INDUSTRY IN INDIA-STATUS PAPER

1. Annual Growth:

The biscuit industry in India witnessed annual growth as below:-

2005-06 - 14%

2006-07 - 13%

2007-08 - 15%

2008-09 - 10%

2009-10 - 14%

2010-11 - 15%

2011-12 18 %

The biscuit industry has been growing almost at static level during the last decade.

However, production of Biscuits witnessed steep decline to 10% in 2008-09 and

further to 14% in 2009-10 and 15% in 2010-11, Indian Biscuit Manufacturers

Association (IBMA) estimate biscuit industry to grow in the range of 15% to 18%in

ensuing five years.

Annual Production:

The organized biscuit manufacturing industrys annual production figures are given

below:


16/56

(In Lakh Metric Tonnes)

2005-06 - 14.29

2006-07 - 16.14

2007-08 - 17.44

2008-09 - 16.57

2009-10 - 18.25

2010-11 - 19.10

2011-12 - 21.23

Segments:

The organized and unorganized sector of the biscuit industry is in the proportion of

65%:35% ratio

EXPORTS of Biscuit was 10% of the annual production during the year 2007-08,

which declined to around 7% in 2008-09 and witnessed higher growth of 12% and

15% in 2009-10 and 2010-11, respectively.

IMPORTSof biscuits into India have not shown any significant growth during the

last two years and have not affected production/sales by the Indian Biscuit industry.

Rural-Urban penetration growth of Biscuit

Urban Market: 75% to 85%

Rural Market: 50% to 65%

Marketing

Wholesale and Retail marketing in the Biscuit industry is carried out with a network

of C & F Agencies (for States and specific Districts), Dealers / Wholesalers and Retail

shops.


17/56

HIKE IN COST OF PRODUCTION

Biscuit Industry especially the Small & Medium Sector, consisting of around 150

units are facing erosion in their profitability and competitive capability, due to Steep

hike in cost of production on account of increase in prices of major raw materials, i.e.

Wheat Flour Veg. Oil, Sugar, Milk, Packaging Materials, Fuel. Wages, etc. Recent

increase in prices of Petrol/Diesel in May 2008 has further resulted n cost push.

Value Added Tax

Imposition of Value Added Tax (VAT) by the State Governments @ 12.5% compared

to VAT at 4% / 0% levied on other similar food products has also adversely affected

biscuit industry.

On behalf of the industry, IBMA has been pursing the issue with the Chief

Ministers/Finance Ministers of all States and also with the Chairman of the

Empowered Committee on VAT, seeking reduction in the rate of VAT on biscuit to

4%. IBMA delegations have already met Shri Asim Dasgupta, Chairman,

Empowered Committee on VAT, as well as Deputy Chief Ministers & Finance

Ministers of Bihar, Orissa, Jharkhand, Punjab, Haryana, Delhi, Andhra Pradesh, and

officials of Uttar Pradesh etc. While most of the State Ministers have expressed their

support of IBMAs representation, however the issue has not so far received

favourable consideration by the Empowered Committee on VAT.

PER CAPITA CONSUMPTION of Biscuits in the country is only 1.8 kg, as

compared to 2.5 kg to 5.5 kg in South East Asian countries and European countries,

and 7.5 kg USA

Pattern of Biscuit Consumption (On Zonal basis)in the country are as below:

Northern Zone - 26%

Western Zone - 24%

Southern Zone - 23%

East and North


18/56

East Zone - 27%

(Including N. East)

Food Laws

In view of this order, the following Act & Orders stand repealed w.e.f. 5 thAugust,

2011:

1. The Prevention of Food Adulteration Act, 1954 (37 of 1954).

2. The Fruit Products Order, 1955.

3. The Meat food product Order, 1973.

4. The Vegetable Oil Products (Control) Order, 1947.

5. Edible Oils Packaging (Regulations) Order, 1998.

6. The Solvent Extracted Oil, De-oiled Meal, and Edible Flour (Control) Order,

1967.

7. The Milk and Milk Products Order, 1992.

8. Any other order issued the under Essential Commodities Act, 1955 (10 of

1955) relating


19/56


20/56

COMPANY PROFILE

Surya Food & Agro Ltd. was incorporated in November 1992 and commenced its commercial operations

of manufacturing & selling of biscuits under brand Priyagold in October 1993. Over a period, we have

established strong manufacturing capabilities and have invested substantially in developing consumer

preference for our products.

Our trademarks / brands Haq Se Maango & Priyagold have emerged as one of the most powerful

brands in the FMCG sector. We are committed to invest in brands, manufacturing capabilities,deliverables and distribution strength. We have plants located in Greater Noida, Lucknow & Surat.

We also outsource some of our requirements to another plant located in Hyderabad. Our capacities have

reached 1,50,000 MT p.a., which along with strong brand building and distribution capabilities have

enabled us to command a sizable market share in the biscuit market despite competition from well-

established players in the industry. After establishing our foothold in biscuit industry, we continued to

adopt strategy to identify and commercialize profitable growth opportunities by leveraging established

brand and distribution network. Following this strategy, we diversified into manufacturing of fruit

juices through our wholly owned subsidiary Surya Fresh Foods Ltd. in January 2006.

The manufacturing facility is located at Greater Noida, U.P. We have consciously invested in creating

markets for fruit juices and have established brands such as Fresh Gold & Treat. Both the brands are

also well established and have penetrated into the fruit juice market aggressively by commanding

considerable market share. We have also forayed into the aerated fruit drink segment with the launch of

Fresh Fizzy. We are also aggressively marketing our products in institutional category. Presently our

products viz. biscuits and fruit juices are supplied to Airlines, Hotels, Railways, Canteens Stores

Department (CSD) and organized retail outlets.


21/56

We are also diversifying into manufacturing of chocolate and toffee & candy through our wholly

owned subsidiary Surya Processed Food Pvt. Ltd. at Haridwar, Uttarakhand, where various fiscal

benefits are available. Our strategy of strengthening the brands especially the umbrella brand Priyagold

has resulted in creating immense brand recall value. We are continuing with our effort of strengthening

the brand with a scientific approach, which will result in growth of customer base, price premium,

consumer loyalty which is expected to result in increased earning and ultimately enhancing enterprise

value of our company.

Thus the companys manifesto is to build on the present strength created over the years and diversify into

products and geographic portfolio. We aim at achieving profitable growth by penetrating into the

consumption market to enhance market share by constantly innovating on product profile, investing in

infrastructure thereby accelerating the top line growth to enhance the market share.

CHAIRMAN


22/56

Shri Ballabh Prasad Agarwal

Chairman & Managing Director

He is the founder Director and Promoter of the company. He has about 35 years of experience in the

business and industry. He is a well known personality in the biscuit manufacturing industry and has

received U.P. Ratan award for his entrepreneurship. He is responsible for overall working of the

company and is instrumental in making strategic decisions of the company. Under his leadership, the

company has grown manifold and achieved an International Quality Crown Award, London 2004 for

best quality biscuit manufacturer.

President :Indian Biscuit Manufacturers Association

Vice President :All India Food Processors Association
http://ibmabiscuits.in/members/list-of-members.htmlhttp://www.aifpa.net/officebearers/index.phphttp://www.aifpa.net/officebearers/index.phphttp://ibmabiscuits.in/members/list-of-members.html


23/56

Brand Equity Award -The Economic Times, Thursday 11 June 2012 "Priyagold is the highest

debutant at no 10."


24/56

Shekhar Agarwal Vice President

We have been in the business of food products since the beginning.

Before starting this company, my father, Shri Ballabh Prasad

Agarwal, had a business of manufacturing coconut oil in Calcutta.When he moved to Delhi, there was no big market for coconut oil in

the North. It is then that he decided to explore some new areas of

opportunity and decided to roll out the biscuit manufacturing

business. The objective has always been to provide exceptional

quality products at a reasonable price for the average consumer.

In 1993, Surya Food & Agro had a very modest start with a small

unit at Greater Noida, which had a capacity of 25 tonnes per day.

The initial investment of Rs 4 crore came in from the coconut oil

business as well as bank loans. We got a very good response for our

first product, under the brand Priyagold. Ever since, we have not

looked back. As of now, our company has four plants, located at Greater Noida, Lucknow, Surat and

Hyderabadwith a capacity of producing 1,50,000 MT per annum. Our manufacturing capabilities, along

with strong brand building and distribution capabilities have enabled us to command a sizable market

share over the years.

We carved a niche by getting into the premium biscuits segment, instead of glucose biscuits. By doing

this, over the years, we have grown to become the number one in northern and central India, and number

two in the western region. This is of course talking only about the premium or non-glucose segment.

However, about 70 percent of the total biscuit industry comprises of glucose biscuits. On a national scale,

when one includes glucose biscuits too, we stand at number three.

Having said that, of course, there is competitionand competition is necessary for growth. We take our

competition as a challenge that we have to overcome. With this approach, we have seen our company

grow at a stable 20-25 percent year-on-year.

Priyagold (Surya Food & Agro)


25/56

India is a growing market, when it comes to the fruit juice segment. Indians have begun to take health and

wellness seriously. The consumption of fruit juices has seen a surge with more and more consumers

becoming health conscious. Also, there are only a few established players in this segment like Tropicana

and Real. We were looking at diversifying our business in the food segment and this space looked full of

opportunities to grow our business. We are doing fairly good, with a growth rate of 30-40 percent in this

market.

You are getting into confectioneries too. What is the plan to gain a foothold?

In the confectioneries market, there are a lot of players in the country. However, most of them are

regional. At a national scale, there are only a few players in this market. There is enough room for more

players to enter this segment on a national level. We have a strong brand building and distribution

capabilities in our biscuits segment. We plan to use the same channels and our existing networks to target

the same consumer group as our biscuit segment. So, as far as capturing a market in the confectioneriessegment is concerned, it should not be a problem for us.

We have to set up food kiosks for sale of our products i.e. biscuits & juices. We plan to do this at about

200 railway stations which will translate into approximately 500 food kiosks spread across various cities

in India. Around 150 kiosks will be functional soon. Of course, doing all of this is a challenge in itself.

But then, expansion is always a challenge in businesses. For us, this contract largely means a lot of

visibility, which will help us in strengthening our brand building exercise.

One should not ignore the fact that a very large segment of our countrys population still lives in rural

areas. Keeping this in mind, we accord a high priority for marketing and distributing our products in these

markets. Our approach has been to enable small scale distributors to take up our products at a very local

level. These distributors happen to be very industrious and help us in penetrating into rural markets.

Right now, the growing markets are those of fruit juice and confectioneries. The fruit juice business is

growing at a steady 30-40 percent. Of course, the biscuit segment is what makes a huge chunk of the

current turnover i.e. around Rs 425 crore. As for the juices segment, it is churning about Rs 60 crore.

We have always had a celebrity who is popular pan-India and can represent a mother-wife image.

Previously, we had Priya Tendulkar and now we have Karisma Kapoor. And, yes, it does help to have a

known face endorsing your brand.


26/56

You might have a good business going with a good turnover but if you want to build a brand with a strong

recall value, having a celebrity promote your products definitely helps in adding a certain value to it.

One noticeable trend is that people today go for brands. For consumers, it does not matter if the product is

as cheap as Re 1, as long as it has a brand name to it. So for creating a stronger brand recall, we plan tohave multiple celebrities endorsing our brands.

As a company, we grew at a stable Rs 20-25 percent per annum. In the year 2003, the company touched

the Rs 100 crore turnover. For me, reaching that figure has been the biggest and most unforgettable

milestone. Right now, we are sitting at Rs 500 crore. The next challenge is to hit a Rs 1,000 crore mark by

2011.

PRODUCTS AVAILABLE

Butter Bite, Classic Cream, Kids Cream, Butter Lift, Marie Lite, Magic Gold,


27/56


28/56


29/56


30/56

CONTACT US

SURYA FOOD & AGRO LTD.

D - 1, Sector - 2,

Noida - 201 301,

U. P., India

Tel : +91 - 120 - 2552989 / 2522939,

Fax : +91 - 120 - 2558154

Email : [email protected]

OTHER MANUFACTURING UNITS:

SURAT HYDERABAD LUCKNOW GREATER NOIDA


31/56

REVIEW OF LITERATURE

MEANING OF COSUMER BEHAVIOR

The term consumer behavior is defined as the behavior that consumers display in searching for

purchasing, using, evaluating and disposing of products and services that they expect will satisfy theirneeds. Consumer behavior focuses on how individuals make decisions to spend their available resources

(time, money, effort) on consumption related items. That includes what they buy, why they buy, when

they buy it, where they buy it, how often they buy it for purchase and the impact of such evaluations on

future purchases, and how they dispose of it.

PERCEPTION

We use our senses (sight, smell, taste, touch, and hearing) to interpret information and

give meaning to what object around us. Perception is the process by which we organize and

select information received through the senses and give meaning to the objects in the world

around us. This is done by our brain. We do not always do this correctly. How do you determine

whether furniture is durable? Suppose a marketer finds that you lift it and if it is heavy you

conclude that it is durable.

SUBLIMINAL PERCEPTION

The idea that you can influence consumer behavior by flashing subliminal messages is

something that started in the early 1950s.

PERCEIVED RISKSome products are perceived as high risk (sports car, house) and some are seen as low risk

(flour, a deck of playing cards). In general, two factors affect the perceived risk of a product that is

uncertainty and consequences.

FINANCIAL RISKSometimes consumers are concerned about losing money if a product does not work well.

PERFORMANCE RISKYou might be worried that the product does not work. Do you worry that salt will not work.


32/56

PSYCHOLOGICAL RISKSometimes people are concerned that a product may not fit their self-image. This is mainly

true for clothing.

ATTITUDES

Attitudes have three components: the cognitive deals with beliefs and knowledge the affective

deal with emotion likes and dislikes and the cognitive, which is more behavioral, deals with actions,

motives, and intent. The teacher evaluation scale completed by students every semester measures your

attitude towards a particular instructor.

ATTITUDES CHANGESMarketers use several approaches in order to try to changes the attitudes of consumers. As

was noted above, the attributes of a product play an important role in the consumer decision making

process. It means the consumer to change the product.

REFERENCE GROUPPeople who are members of a gang tend to dress alike and buy the same brand of beer and

cigarettes. It means to purchase same thing of products.

FIVE STAGES OF CONSUMER BUYING BEHAVIOR

Need awareness:The beginning point of most purchasing is your potential buyer recognition of a need in their

life. This need can be established by encountering a problem or prompted by a company

marketing.

Information search:With the rise of the internet, it has never been easier for buyers to research their purchase.

Make sure your small business is in the game by providing educational material on your website.

Check options:After an information search, the customer will evaluate all the available options. Options

include wanted features pricing and company credibility.

Purchase decision:This is the moment when the customer wants to buy. Deals are easily lost when you keep

selling to the customer. There an old adage in sales when the customer says I will take it. Keep

your mouth closed, and close the deal.


33/56

Post buying behavior:An overlooked piece of consumer buying behavior is what occurs after the purchase. The

buyer will look for reinforcement from media friends and other sources confirming they made the

right decision.

FACTORS INFLUENCING CONSUMER BEHAVIOR

Personal factors. Psychological factors. Social factors. Cultural factors.

Personal factors:Age and life cycle stage, occupation, economic situation, lifestyle, personality and self

concept are called personal factors. It affect the buying behavior to the consumer

Psychological factors:Motivation, perception, learning are called psychological factors. It affects the consumer

behavior in way of mentally.

Social factors:Social factors means around the society methods and traditions followers. Simply they

are group of people under religions and caste.

Cultural factors:To follow some traditions means culture the people live with in some restrictions and

conditions it also to affect the consumer behavior.


34/56

A LITERATURE REVIEW FROM MONEESHA PACHAURI

Meaning

Consumer behaviouris the study of how people buy, what they buy, when they buy and why

they buy. It blends elements from psychology, sociology, sociopsychology, anthropology and economics.It attempts to understand the buyer decision making process, both individually and in groups. It studies

characteristics of individual consumers such as demographics, psychographics, and behavioral variables

in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups

such as family, friends, reference groups, and society in general.

Consumer Behavior and Marketing Strategy

The study of consumers helps firms and organizations improve their marketing strategies by

understanding issues such as how,

The psychology of how consumers think, feel, reason, and select between different alternatives(e.g., brands, products);

The psychology of how the consumer is influenced by his or her environment (e.g., culture,family, signs, media);

The behavior of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence decisions and

marketing outcome; How consumer motivation and decision strategies differ between products that differ in their level

of importance or interest that they entail for the consumer; and

How marketers can adapt and improve their marketing campaigns and marketing strategies tomore effectively reach the consumer.

Understanding these issues helps us adapt our strategies by taking the consumer into

consideration.


35/56

There are four main applications of consumer behavior:

The most obvious is for marketing strategy i.e., for making better marketing campaigns. Forexample, by understanding that consumers are more receptive to food advertising when they are

hungry, we learn to schedule snack advertisements late in the afternoon. By understanding thatnew products are usually initially adopted by a few consumers and only spread later, and then

only gradually, to the rest of the population, we learn that (1) companies that introduce new

products must be well financed so that they can stay afloat until their products become a

commercial success and (2) it is important to please initial customers, since they will in turn

influence many subsequent customers brand choices.

A second application is public policy. In the 1980s, Accutane, a near miracle cure for acne, wasintroduced. Unfortunately, Accutane resulted in severe birth defects if taken by pregnant women.

Although physicians were instructed to warn their female patients of this, a number still becamepregnant while taking the drug. To get consumers attention, the Federal Drug Administration

(FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the

medicine containers.

Social marketing involves getting ideas across to consumers rather than selling something. MartyFishbein, a marketing professor, went on sabbatical to work for the Centers for Disease Control

trying to reduce the incidence of transmission of diseases through illegal drug use. The best

solution, obviously, would be if we could get illegal drug users to stop. This, however, was

deemed to be infeasible. It was also determined that the practice of sharing needles was tooingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes.

As a final benefit, studying consumer behavior should make us better consumers. Common sensesuggests, for example, that if you buy a 64 liquid ounce bottle of laundry detergent, you should

pay less per ounce than if you bought two 32 ounce bottles. In practice, however, you often pay a

size premium by buying the larger quantity. In other words, in this case, knowing this fact will

sensitize you to the need to check the unit cost labels to determine if you are really getting a

bargain.


36/56

GENDER IDENTITY IN CONSUMER BEHAVIOR RESEARCH

The process of consumption has long been associated with sex and gender, thus, it comes

as no surprise that consumer researchers often examine the effects of these variables on

consumer behaviors. It also comes as no surprise that much is known about sex and gender and

how they impact buying and consuming activities. Yet there is one gender-related variable,

gender identity that has both intrigued and perplexed consumer behavior researchers for over

four decades.

Gender identity, sometimes referred to as an individual's psychological sex, has been

defined as the fundamental, existential sense of one's maleness or femaleness" (Spence 1984, p.

83). Since gender is culturally derived, gender identity is similarly rooted in cultural

understandings of what it means to be masculine or feminine (Firat 1991; Lerner 1986). For

many years, sex and gender were thought to be inseparable--that is, men were masculine and

women were feminine. But what consumer behavior researchers, among others, recognized long

ago was that some men were more feminine than masculine while some women were more

masculine than feminine. In the postmodern culture in which we now live, this separation of

gender from sex is even more apparent.


37/56

DATA ANALYSIS AND INTERPRETATION

ANALYSIS USING PERCENTAGE METHOD

PRIYA GOLD BI SCUITS CONSUMER

No. of Respondents Percentage

Valid Yes59 59

No 41 41

Total 100 100

Inference:

Out of 100 samples 59 people consumed Priya Gold Biscuits 41 people did not consumed.

consumedtrue

consumedtrue

noyes

70

60

50

40

30

20

10

0


38/56

CONSUMPTION OF PRIYA GOLD BISCUITSUNDER SEX

Inference:

Total male is 48 but a true biscuit consumer is 33 and total no of female are 52 but Priya Gold

Biscuits consumer is 26.

Consumption of PRIYA GOLD

BISCUITS

Total

Yes No

Sex

Male 33 15 48

Female 26 26 52

Total 59 41 100


39/56

CONSUMPTION BASED ON OCCUPATION

Occupation No. of Respondents Percentage

Valid

Agriculture 7 7

Business 7 7

Salaried 20 20

Student 41 41


40/56

.

Inference:

In table shows that, how the consumer purchase Priya Gold Biscuits under their occupation.

CHART 5.1.3

occupation

occupation

housewiffestudentsalariedbusinessagriculture

50

40

30

20

10

0

CONSUMED PRIYA GOLD BISCUITS BASED ON OCCUPATION (Out of 100)

Housewife 25 25

Total 100 100


41/56

Occupation Total

Agriculture

Business Salaried Student Housewife

Consumed

TrueYes

5 5 13 20 16 59

Yes

2 2 7 21 9 41

Total7 7 20 41 25 100

Inference:

Total 100 sample their occupation is different (agriculture, Business, salaried, student and

housewife. In that category the percentage diagram shows student are important buyer for Priya

Gold Biscuits out of 59 students was 20 were consumed Priya Gold Biscuits.


42/56

SELECTING BRAND


Valid

Quality 38 38

Brand name 24 24

Price 30 30

Package 8 8

Total 100 100

Inference:

The people consumed Priya Gold Biscuits under their quality, because they first preference to

quality and next is price.

CHART

selecting brand

selecting brand

packagepricebrand namequality

40

30

20

10

0


43/56

PRIYA GOLD CONSUMPTION BASED ON AGE


Valid

10-20 38 38

20-30 37 37

30-40 15 15

40-50 10 10

Total 100 100

Inference:

The table shows that Consumption of Priya Gold Biscuits in age wise. Highly age belonging to

10-20 consumes more biscuits.


44/56

PRIYA GOLD BISCUITSCONSUMPTION BASED ON AGE

Age Consumed Priya Gold Total

Yes No

10-20 17 21 38

20-30 25 12 37

30-40 9 6 15

40-50 8 2 10

Total 59 41 100

Inference:

I done survey 10-50 age people in that report give information am 20-30 age people are

consumed Priya gold biscuits compare to other group age people.


45/56

PRIYA GOLD BISCUIT KNOWN FROM

Inference:

People get aware from advertisement and friends, family members, neighbors. Out of the

source more number of people gets aware from their friends and advertisement.

CHART

know about

Missing

neighbors family members

friends

advertisement

Known From No. of Respondents Percentage

Valid

Advertisement 18 18

Friends 18 18

Family members 15 15

Neighbors 8 8

Total 59 59

Missing System 41 41

Total 100


46/56

PRIYA GOLD BISCUIT CONSUMED BASED ON PRICE

Price Range No. of Respondents Percentage

Valid

5-10 9 9

10-15 14 14

15-20 20 20

>20 16 16

Total 59 59


Total 100 100

Inference:

From the above table and the diagram it shows that from Rs15 to 20 products is moving

highly in the market.

price true

Missing

>20

15-20

10-15

5-10


47/56

ALTERNATIVE

Alternative

No. ofRespondents

Percentage

Valid

Britannia 47 47

Sun feast 28 28

Parle 21 21

None 4 4

Total 100 100

Inference:

From the above table and diagram, the alternative for the Priya Gold biscuit is Britannia and Sun

feast.


48/56

CHART

alternative

none

parle

sunfeast

britannia

PRIYA GOLD BISCUITSCONSUMED UNDER

Ranges No. of Respondents Percentage

Valid Regular 23 23

Flavor 36 36

Total 59 59


Total 100 100

Inference:

From the above table, when comparing the regular biscuit and flavors biscuit. The flavors

biscuit is well moving in the market.

CHART


49/56

purchase under

purchase under

flavoreregular

40

30

20

10

0

NO. OF FLAVOR

Ranges


Valid

Custard cream 11 11

Crunch cream 5 5

Bourbon 10 10

Choco Marie 10 10

Total 36 36


Total 100 100

Inference:

When we comparing the Priya Gold Biscuits flavors, custard cream is moving highly in

the market.


50/56

CHART

flavor

flavor

choco mariebourboncrunch creamcustard cream

12

10

8

6

4

2

0

SUGGESTION

Suggestions No. of Respondents Percentage

Valid

More advertisement 38 38

Attractive package 14 14

Introduce new flavor 15 15

Better quality 17 17

Less price 16 16

Total 100 100

Inference:

From the above table and the diagram, most of the people suggestion is to give

advertisement.


51/56

suggestion

suggestion

less price

better quality

introduce new f lavor

attractive package

more advertisement

40

30

20

10

0

5.2ANALYSIS USING WEIGHTED AVERAGE METHOD

XW = WX/ X


52/56

TABLE 5.2.1

LEVEL OF SATISFACTION

Factors High

Satisfaction

Satisfaction Dissatisfaction

Taste 36 108 22 44 1 1

Price 16 48 42 84 1 1

Quality 28 84 30 60 1 1

Design 15 45 42 84 2 4

High Satisfaction Satisfaction Dissatisfaction Total Average

108 44 1 153 51

48 84 1 133 44.33

84 60 1 145 48.33

45 84 4 133 44.33


53/56

Inference:

From the above table the average for taste and quality is high. So the consumer gives more

preferences.

IT SHOWS THE SATISFACTION LEVEL

Inference:

From the above chart shows taste and quality is high. So the consumer gives more preferences

0

20

40

60

80

100

120

High Satisfaction Satisfaction Dissatisfaction

Taste

Price

Quality

Design


54/56

6.1 FINDINGS OF THE STUDY

Out of 100 (59 no of people consume Priya Gold Biscuits and 41 no of people did not consumed).

Out of 59 (33 male and 26 female consume Priya Gold Biscuits).

Most number of people consumes Priya Gold Biscuits under quality based.

Student and house wife give most preference to Priya Gold Biscuits.

20-30 age people is to buy more (25) out of 59.

Many people know Priya Gold Biscuits about through advertisement.

15-20 price products are well moving in market..

Compare to flavor and regular biscuits, flavor is well moving in market out of 59 (36 is flavor).

In flavor custard cream is high moving compare to other flavor.

Most competitor is Britannia.


55/56

6.2 SUGGESTIONS AND RECOMMENDATIONS

The suggestions are collect data from public to develop the market for Priya GoldBiscuits.

The most of the people given suggestions about the advertisements because they did nothave much more advertisement compare to Britannia biscuits.

They can improve the quality with favor prices. To improve the brand name among the public, because brand name is very important to

every product now people, to ask the product to it their brand name.

They can improve the brand awareness through educational institutions by giving thesample piece.

To improve in the rural market.


56/56

CHAPTER-VII

CONCLUSION

Consumer Behavior will help to learn consumer buying attitude. In Priya Gold Biscuits not get

much more awareness from public, so kindly to improve the advertisements and other improvements

process.

To concentrate more on channel of distribution. The most Priya Gold Biscuits consumer is

student and housewife, to introduce more flavors and improve the taste and quality of the biscuits. The

most buyers to consume under quality of the biscuits and other option are price. To give important to

street vendors because more number of people consumed under street vendors. So kindly improve the

advertisement and give more awareness to the people.

project of surya foods

Documents