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A STUDY ON SALES PROMOTION AND
CONSUMER BEHAVIOR OF AAVIN MILK & MILK
PRODUCTS
PROJECT REPORT
Submitted by
SUKUMAR.P
Register No: 098001306075
In partial fulfillment for the award of the degree
of
MASTER OF BUSINESS ADMINISTRATION
IN
DEPARTMENT OF MANAGEMENT STUDIES
NANDHA ENGINEERING COLLEGE
ERODE-638052
MAY 2011
BONAFIDE CERTIFICATE
NANDHA ENGINEERING COLLEGE
ERODE-638052
Department of Management Studies
PROJECT WORK
May 2011
This is to certify that the project entitled
A STUDY ON SALES PROMOTION AND CONSUMER
BEHAVIOR OF AAVIN MILK & MILK PRODUCTS
is the bonafide record of project work done by
SUKUMAR.P
Register No: 098001306075
of MBA during the year 2009-2011
--------------------- ----------------------------------
Project Guide Head of the Department
Submitted for the Project Viva-Voce examination held on
------------------------- --------------------------
Internal Examiner External Examiner
DECLARATION
I affirm that the project work titled A STUDY ON SALES
PROMOTION AND CONSUMER BEHAVIOR OF AAVIN MILK & MILK
PRODUCTS being submitted in partial fulfillment for the award of MASTER OF
BUSINESS MANAGEMENT is the original work carried out by me. It has not formed
the part of any other project work submitted for award of any degree or diploma, either
in this or any other University.
(Signature of the Candidate)
SUKUMAR.P
Register No: 098001306075
I certify that the declaration made above by the candidate is true
Signature of the Guide,
Mrs.S.SUDHA, MBA, M.Phill, SLET.,(Phd).,
ACKNOWLEDGEMENT
I take this opportunity in acknowledging some noble hearts for lending
their knowledge and time in the successful completion of the project.
I would like to record my sincere thanks and gratitude to our Head of the
Department of Management Studies Mr.N.Devaraj, for his kind and warm hearted
support throughout the project.
I express my profound sense of gratitude to my project guide
Mrs.S.Sudha, for her eminent guidance and sharing the knowledge in each and every
part of the project.
I am extremely thankful to all our department staff members.
I extent my heartfelt thanks to Mr.D.Rajarajan., AAVIN CO-
OPERATIVE MILK PRODUCERS, UNION LIMITED. Who gave an opportunity to do
the project in such a reputed institution, and who guided me to complete the project in a
successful manner.
My hearty thanks to all the bank employees, for their kind co-operation and
help during my study.
I am greatly indebted to my parents and friends for their consistent
motivation and support.
SUKUMAR.P
TABLE OF CONTENTS
CHAPTER
NO.
TITLE PAGE
NO.
List of Tables
List of Charts
1 Introduction
1.1 About the study 1
1.2 Industry profile 4
1.3 About the company 7
2 Main Theme Of The Project
2.1 Objectives of the study 13
2.2 Scope of the study 14
2.3 Review of Literature 15
2.4 Research methodology 18
2.5 Limitations of the study 20
3 Data Analysis And Interpretation
4 Findings, Suggestions And Conclusion
4.1 Findings 59
4.2 Suggestions 61
4.3 Conclusion 62
Bibliography
Appendix
LIST OF TABLES
TABLE
NO.
NAME OF THE TABLE
PAGE
NO.
3.1 Opinion about Gender 21
3.2 Opinion about Age 23
3.3 Consumer awareness about the product 25
3.4 Consumers frequency level of buying 27
3.5 Consumer preference towards aavin products 29
3.6 Consumers preference towards Quantity 31
3.7 Reason for Purchase of products 33
3.8 Consumers opinion about Price Level 35
3.9 Consumers opinion about Quality Level 37
3.10 Consumer Awareness regarding ISI and Agmark standards 39
3.11 Consumer Awareness regarding Advertisement 41
3.12 Consumers opinion about availability of aavin stall near by area 43
3.13 Consumer awareness regarding availability of all aavin products in
the stall
45
3.14 Consumers purchasing level during the train travel 47
3.15 Consumer preferences of aavin stall in railway station 49
3.16 Consumer opinion towards the budget level 51
3.17 Satisfaction of consumers towards service 53
3.18 Opinion of consumers towards package 55
3.19 Satisfaction level of consumers towards Freshness 57
3.20 Overall satisfaction of consumers compared to other products 59
3.21 Gender and Opinion towards the budget level 61
3.22 Age and Customer service 62
3.23 Influence to know the product and purchase level during train travel 63
LIST OF CHARTS
TABLE
NO.
NAME OF THE TABLE
PAGE
NO.
3.1 Opinion about Gender 22
3.2 Opinion about Age 24
3.3 Consumer awareness about the product 26
3.4 Consumers frequency level of buying 28
3.5 Consumer preference towards aavin products 30
3.6 Consumers preference towards Quantity 32
3.7 Reason for Purchase of products
34
3.8 Consumers opinion about Price Level 36
3.9 Consumers opinion about Quality Level
38
3.10 Consumer Awareness regarding ISI and Agmark standards 40
3.11 Consumer Awareness regarding Advertisement 42
3.12 Consumers opinion about availability of aavin stall near by area
44
3.13
Consumer awareness regarding availability of all aavin products in
the stall
46
3.14 Consumers purchasing level during the train travel
48
3.15 Consumer preferences of aavin stall in railway station
50
3.16 Consumer opinion towards the budget level
52
3.17 Satisfaction of consumers towards service 54
3.18 Opinion of consumers towards package 56
3.19 Satisfaction level of consumers towards Freshness 58
3.20 Overall satisfaction of consumers compared to other products 60
ABSTRACT
This project is about ―A STUDY ON CONSUMER BEHAVIOUR AND SALES
PROMOTION OF AAVIN MILK & MILK PRODUCTS”. The main objective of the study
is to find out the Sales promotion & consumer behaviour of Aavin milk and milk products. The
research mainly focuses on the factors like quality, consumer preference, price, service,
attitudes and experience of consumers.
In this study, data are collected from the consumers through questionnaire(interview
schedule).,200 samples are selected using convenience sampling. Using the interview schedule
prepared, the 200 consumers are interviewed personally and their opinion was collected.
Secondary data was collected from the management. The collected data is analyzed using
analytical tools like simple percentage and chi-square test. As per the findings, suggestions are
given to the company to take initiation to fulfill the consumer needs.
CHAPTER – 1
1.1 Introduction about the study
Sales promotion is an important component of a small business's overall marketing strategy,
along with advertising, public relations, and personal selling. The American Marketing
Association (AMA) defines sales promotion as "media and nonmedia marketing pressure
applied for a predetermined, limited period of time in order to stimulate trial, increase consumer
demand, or improve product quality.
A direct inducement that offers extra value or incentive for the product to the Sales force,
distributors, or the ultimate consumer with the primary objective of creating "immediate" sales .
Sales promotion is any initiative undertaken by an organisation to promote an increase
in sales, usage or trial of a product or service (i.e. initiatives that are not covered by the other
elements of the marketing communications or promotions mix). Sales promotions are varied.
Businesses can target sales promotions at three different audiences: consumers, resellers,
and the company's own sales force. Sales promotion acts as a competitive weapon by providing
an extra incentive for the target audience to purchase or support one brand over another. It is
particularly effective in spurring product trial and unplanned purchases. Most marketers believe
that a given product or service has an established perceived price or value, and they use sales
promotion to change this price-value relationship by increasing the value and/or lowering the
price. Compared to the other components of the marketing mix (advertising, publicity, and
personal selling), sales promotion usually operates on a shorter time line, uses a more rational
appeal, returns a tangible or real value, fosters an immediate sale, and contributes highly to
profitability.
Popular sales promotions activities:
(a) Buy-One-Get-One-Free (BOGOF) - which is an example of a self-liquidating promotion.
For example if a loaf of bread is priced at $1, and cost 10 cents to manufacture, if you sell two
for $1, you are still in profit - especially if there is a corresponding increase in sales. This is
known as a PREMIUM sales promotion tactic.
(b) Customer Relationship Management (CRM) incentives such as bonus points or money
off coupons. There are many examples of CRM, from banks to supermarkets.
(c) New media - Websites and mobile phones that support a sales promotion. For example, in
the United Kingdom, Nestle printed individual codes on KIT-KAT packaging, whereby a
consumer would enter the code into a dynamic website to see if they had won a prize.
Consumers could also text codes via their mobile phones to the same effect.
(d) Merchandising additions such as dump bins, point-of-sale materials and product
demonstrations.
(e) Free gifts e.g. Subway gave away a card with six spaces for stickers with each sandwich
purchase. Once the card was full the consumer was given a free sandwich.
(f) Discounted prices e.g. Budget airline such as EasyJet and Ryanair, e-mail their customers
with the latest low-price deals once new flights are released, or additional destinations are
announced.
(g) Joint promotions between brands owned by a company, or with another company's brands.
For example fast food restaurants often run sales promotions where toys, relating to a specific
movie release, are given away with promoted meals.
(h) Free samples (aka. sampling) e.g. tasting of food and drink at sampling points in
supermarkets. For example Red Bull (a caffeinated fizzy drink) was given away to potential
consumers at supermarkets, in high streets and at petrol stations (by a promotions team).
(i) Vouchers and coupons, often seen in newspapers and magazines, on packs.
(j) Competitions and prize draws, in newspapers, magazines, on the TV and radio, on The
Internet, and on packs.
(k) Cause-related and fair-trade products that raise money for charities, and the less well off
farmers and producers, are becoming more popular.
(l) Finance deals - for example, 0% finance over 3 years on selected vehicles.
Many of the examples above are focused upon consumers. Don't forget that promotions can be
aimed at wholesalers and distributors as well. These are known as Trade Sales Promotions.
Examples here might include joint promotions between a manufacturer and a distributor, sales
promotion leaflets and other materials (such as T-shirts), and incentives for distributor sales
people and their retail clients.
Sales promotion describes promotional methods using special short-term techniques to
persuade members of a target market to respond or undertake certain activity. As a reward,
marketers offer something of value to those responding generally in the form of lower cost of
ownership for a purchased product (e.g., lower purchase price, money back) or the inclusion of
additional value-added material (e.g., something more for the same price).
Objectives of Sales Promotion
Sales promotion is a tool used to achieve most of the five major promotional objectives :
Building Product Awareness – Several sales promotion techniques are highly effective
in exposing customers to products for the first time and can serve as key promotional
components in the early stages of new product introduction. Additionally, as part of the
effort to build product awareness, several sales promotion techniques possess the added
advantage of capturing customer information at the time of exposure to the promotion.
In this way sales promotion can act as an effective customer information gathering tool
(i.e., sales lead generation), which can then be used as part of follow-up marketing
efforts.
Creating Interest – Marketers find that sales promotions are very effective in creating
interest in a product. In fact, creating interest is often considered the most important use
of sales promotion. In the retail industry an appealing sales promotions can significantly
increase customer traffic to retail outlets. Internet marketers can use similar approaches
to bolster the number of website visitors. Another important way to create interest is to
move customers to experience a product.
Providing Information – Generally sales promotion techniques are designed to move
customers to some action and are rarely simply informational in nature. However, some
sales promotions do offer customers access to product information. For instance, a
promotion may allow customers to try a fee-based online service for free for several
days. This free access may include receiving product information via email.
Stimulating Demand – Next to building initial product awareness, the most important
use of sales promotion is to build demand by convincing customers to make a purchase.
Special promotions, especially those that lower the cost of ownership to the customer
(e.g., price reduction), can be employed to stimulate sales.
Reinforcing the Brand – Once customers have made a purchase sales promotion can be
used to both encourage additional purchasing and also as a reward for purchase loyalty
(see loyalty programs below). Many companies, including airlines and retail stores,
reward good or ―preferred‖ customers with special promotions, such as email ―special
deals‖ and surprise price reductions at the cash register.
CONSUMER BEHAVIOUR:
Consumer behavior is "The study of individuals, groups, or organizations and the
processes they use to select, secure, use, and dispose of products, services, experiences, or ideas
to satisfy needs and the impacts that these processes have on the consumer and society."
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 to more effectively reach the consumer.
There are four main applications of consumer behavior:
The most obvious is for marketing strategy—i.e., for making better marketing
campaigns. For example, 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 that new 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.
Social marketing involves getting ideas across to consumers rather than selling
something.
As a final benefit, studying consumer behavior should make us better consumers.
Benefit of Studying Consumer Behavior
The benefits of studying consumer behavior have significant bearing on marketing and public
relations decisions. Studies focusing on consumer behaviors yield important information and
insight into what consumers are thinking. With these insights, marketing and public relations
firms may enhance their particular marketing campaigns to successfully connect with
consumers.
1. Perceptions
Studying consumer behavior helps marketers understand consumer perceptions
about a particular product or range of products. Uncovering and correcting erroneous
perceptions about a particular product may give marketers an additional competitive
advantage over competitors.
2. Attitudes
Consumer attitudes very often determine consumer beliefs about certain products.
Discovering consumer attitudes allows marketers to fine tune their campaigns to
resonate with a particular consumer niche and deepen marketing reach.
3. Cultures
Changing population demographics around the world affect the way marketing
campaigns are designed. Understanding cultural nuances and subtleties may allow
marketers to help further define their particular target market.
4. Lifestyles
Consumer lifestyles also determine what products appeal to certain consumer
markets. Understanding consumer lifestyles is also a key component of consumer
behavior that lets marketers make the appropriate appeals in promoting lifestyle
products and further consumption of lifestyle products.
5. Experience
Like consumer attitudes, experience also colors consumer responses to certain products.
By studying consumer behavior, marketing professionals can tap into consumer
experiences with similar products to promote consumption and gain competitive
advantage over competitors.
1.2 INTRODUCTION ABOUT THE INDUSTRY
Dairy Development in India has been acknowledged the world over as one of the most
successful development programme. India is the second largest milk producing country with the
production about 78 million tons during 1999 – 2000. The milk surplus States in India are Uttar
Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharastra, Andhra Pradesh, Karnataka and Tamil Nadu.
The manufacturing of milk products is concentrated in these milk surplus States.
Dairy sector has assumed a great significance by generating income not only to the rural but also
to the urban and semi-urban population in the state especially to the women folk by providing self
employment opportunity. Milk and milk products provides essential nutrition to all walks of life. It
provides the main source of income next to agriculture. In a tropical country like India, agriculture may
fail sometimes, due to monsoon failure but dairying never fail and gives them regular, steady income.
The state Dairy Development was established in 1958. The Administrative and statutory controls
over the entire milk cooperative in the State were transferred to the Dairy Development on 01.08.1965.
The Commissioner for the Milk Production and Dairy Development is the functional registrar under the
Tamilnadu Co-operative Societies Act 1983.
With the advent of ―Anand Pattern‖ in Tamil Nadu, Tamil Nadu Co-operative Milk Products
Federation limited was registered on 1st February 1981 as the State level organization. The commercial
activities of the department such as procurement, processing, packing and the sale of milk and milk
products within and outside the State was entrusted to the Tamil Nadu Co-operative Milk Producer’s
Federation ltd.
In the wake of the liberalization policy, private dairies have entered in the field of dairying. As
per the direction of the National Dairy Development Board and Government of Tamil Nadu high priority
has been given for improving the performance of Co-operative by adopting a systematic approach and
proper strategy implementation in milk co-operatives. Significant achievement ha been made by Milk
Producer’s Co-operative Societies, Unions and Federation in the state of Tamilnadu.
TWO FOLD OBJECTIVES OF THE DAIRY DEVELOPMENT DEPARTMENT
Assure a remunerative price of the milk produced by the milk producer’s societies
through a stable, steady and well market support.
Distribution of quality milk and milk products at reasonable price to the consumers.
FUNCTIONS OF THE DAIRY DEVELOPMENT DEPARTMENT
The main functions of the Dairy Development Department are organization of societies,
registration of societies, supervision and control of primary Milk Co-operative, District Co-operative
Milk Producers Union and Tamil Nadu Co-operative Milk Producer’s Federation.
The Dairy Development Department exercise statutory functions like enquiry, inspection,
surcharge and super session, appointment of special officers, liquidation and winding up of societies etc.
The Commissioner for milk production and Dairy Development, Deputy Milk Commissioner (Co-
operative) and circle Deputy Registrars are vested with quasi-judicial power in respect of settlement of
dispute, appeal, revision and review under various provisions of Tamil Nadu Co-operative societies Act
1983 and rule 1988 made there under.
1.3 INTRODUCTION ABOUT THE COMPANY
The Erode District Co-operative Milk Producers Union limited is a replica of the District Union
in Gujarat state based on the ―AMUL‖ system. The Erode Milk Union is therefore sandwiched in the
middle of the 3-tier system popularly known as ―ANAND‖ or ―AMUL‖ pattern consisting of an apex
State Level Federation at Chennai, the Union at the District level and the primary Co-operative Societies
at the village level.
The entire project had been funded by the National Dairy Development board, Anand through
the government of Tamilnadu and the Tamilnadu Co-operative Milk Producer’s Federation. The project
had been funded under the nationwide operation flood programme with an aim to bring about a
socioeconomic awakening in rural India.
The district union has 728 primary Milk Co-operative at its base and the Tamil Nadu Co-
operative Milk Producer’s Federation as its apex body.
Special features of the Company
Weekly four rail milk tankers of about 16000 liters of condensed milk is supplied to Mother
Dairy, Delhi from the Erode Dairy.
On an average 80,000 litres of raw chilled milk is supplied for Chennai metro sales from
Erode Dairy.
Milk products like Butter, Ghee, Skimmed milk powder, Milk Peda, Dates khova,
Flavoured milk, Butter milk, Badam milk powder, Ice cream are produced at Erode
Dairy and selling to customers according their requirements.
The company is an ISO 9001 – 2000 certified and ISI certified for the skimmed milk
powder production and the Erode Dairy ghee is sold with AGMARK certificate.
National wide database laboratory established at Erode District out of 15 milk producers
union selected by National Dairy Development Board in India.
Union is selling ghee to Thiruppathi Thirumala Devasthanam in tankers for Laddu
preparation.
Functions of district cooperative milk producers union
Establishment of chilling centers
Formation of new milk routes to collect the milk produced by the member
societies
Collection of milk form societies, process and pack in modern Dairy plant by
maintaining quality standards
Fixation of procurement and selling price of milk
Increase of milk sales by introducing innovative sales promotion activities
Supply of inputs to the member societies obtained from unions
Erode union is acting as a feeder balancing Dairy
The union spends 154.42 lakhs, 169 lakhs, 187.74 lakhs, 219.28 lakhs for
marketing for the past five years, which includes transport and agents
commission.
The union spends 1.20 lakhs, 3 lakhs for advertisement.
To provide artificial insemination and veterinary aid facilities to the milk
producers.
CHAPTER-2
2.1OBJECTIVES OF THE STUDY
Primary objective:
The main objective of the study is to study the Sales promotion & consumer
behaviour of Aavin milk and milk products in Erode town
Secondary objective:
To identify the sales promotion strategies adopted by the aavin milk company
To study the quality and consumer preferences towards aavin milk& milk
products.
To identify the satisfaction level of customers towards the price & service
provided by the company.
To study the attitudes and experience of customers towards aavin products and to
suggest the valuable measures based on the findings.
2.2 SCOPE OF THE STUDY
The scope of the study is to identify and analyse the consumer behavior towards
the service, price & quality of aavin milk & milk products and also to analyse the sales
promotional strategies adopted by the company.This study will help the organization to
increase the sales of the Aavin milk and milk products and to strengthen the sales
promotion strategies.
2.3 REVIEW OF LITERATURE
Ketelaar, et al., (2001), As the flow of online sales increases and more companies begin to
move into the digital arena, advertisers and digital designers are forced to stay on the cutting
edge in terms of website design and content presentation. In a search to find website design
techniques that increase information flow and website stickiness, two possibilities were found,
persuasive navigation and "open", or visually rhetorical, online advertising. These two
techniques focus on presenting targeted information to consumers, in the form of website
content advertisements, while they browse a given website.
Bright (2004) , The concept of intra-site advertising was tested by him and was found to
be effective in terms of increasing information flow on a controlled website. Open advertising
has not yet been tested in the online environment, with current studies focusing on print media,
however it presents promises potential as an online persuasion technique. This paper will further
explore the application of open advertising in the online context as well as elements of
interactivity and design.
(Zakon, 2002) says that the Web has come to encompass some 38 million plus websites.
It is a tossup as to whether any of these websites effectively communicate with their target
audience in a manner that is both user-friendly and efficient in terms of brand impact and sales.
As most consumer advocates have come to know, digital environments that frustrate users
dramatically decrease brand loyalty and can cause consumers to completely abandon a brand
community in both real and virtual worlds. In an effort to stem off this flow of frustration, two
new digital design techniques provide an intriguing way to increase information flow within
digital environments while providing imagery and content that makes users feel intelligent and
engaged. These new design techniques are persuasive navigation and open online advertising,
respectively. One technique deals with the information architecture of the website, while the
other addresses imagery; both in an equally seductive fashion.
Kioumarsi et al.,(2009),says that Personality characteristics impact consumer behavior
because they shape the way in which consumers respond to messages at a given time. This
response changes minute to minute based upon the unique characteristics of the target consumer
and their ongoing life experience. The online environment presents a vast opportunity for
companies to interact with consumers on a personal, customized level. Individual differences
are an important aspect of this interaction as they provide insight into how people with varying
levels of experience with the online environment respond to interactive persuasion techniques.
Friestad and Wright (1994), in their presentation of the PKM, posit that the
effectiveness of advertising persuasion techniques depends upon the level of persuasion
expertise each individual possesses. In an online environment, measurement of this effect can
be achieved by looking at user experience levels, self efficacy, and number of hours spent
online. General knowledge gleaned from the PKM dictates that consumers with more
experience in the online environment will be better at coping with persuasion techniques
therein, such as open, visually rhetorical advertisements.
Ketelaar et al(2004) conducted the study that an individual's need for cognition refers
to their motivation to engage in meaningful cognitive thought or undertaking. A consumer's
need for cognition will impact their ability to deal with tasks and social settings, such as
responding to advertising messages or calls to action. This applies directly to the concept of
open, visually rhetorical advertising because such messages require a higher cognitive
processing load to be understood and learned. Although need for cognition was not found to
impact interpretations of open advertisements in the Ketelaar et al. study, it is still an
interesting variable that can be effectively measured and manipulated for this type of research
endeavor. Additionally, cognitive response, and the need therein serve an important part in the
development of brand attitudes within a target consumer.
McGinnis and Jaworski (1989) ,The concept was elaborated upon by in their seminal
piece regarding information processing in advertising: "Cognitive and emotional responses
related to imagined product consumption experiences are the strongest determinants of brand
attitude. As shown, need for cognition is linked to the development of brand attitude in
consumers. When examined in terms of its relationship to time spent processing online, visually
rhetorical advertising, need for cognition could prove to be an interesting differentiator within
the sample group. In addition to need for cognition, an internal motivation toward the product
being advertised should be apparent within driven consumers. This motivation helps push the
consumer toward unraveling the visual riddle presented in an open advertisement. Type of
motivation, either utilitarian ("goal-oriented") or hedonic ("expressive"), is a diverse and
interesting factor to analyze across consumer groups.
Phillips (2000) shown in research undertaken by, consumers with utilitarian, goal-
oriented motivations are keen on evaluating product attributes and therefore less likely to be
attracted to open advertisements. Consumers with hedonic or "expressive" goals are more likely
to seek out the entertainment value in the open advertisement.
Huang (2003), in his online study of websites, found that level of attention in consumers
is most linked to utilitarian design while both control and interest are linked to hedonic
performance measures.
Liu, et al (2002), based on their online research, concluded that higher levels of active
control within consumers resulted in being geared towards more utilitarian, goal-based website
designs. As shown in these studies, motivation is an individual difference worth characterizing.
Type of consumer motivation is extremely important when analyzing online consumer behavior
as it helps categorize amongst user groups, across sites.
2.4 RESEARCH METHODOLOGY
RESEARCH DESIGN
The research design chosen is descriptive as the study reveals the state of facts existing.
Descriptive research design:
Descriptive research studies are those studies which are concerned with describing the
characteristics of a particular individual, or a group. The study is concerned whether certain
variables are associated with the study. And also the study is concerned with specific
predictions, with narration of facts and characteristics concerning an individual, group or
situation.
METHODS OF DATA COLLECTION:
While deciding about the method of data collection for the study the researcher should keep in
mind the two types of data collection.
Primary Data:
Data has been collected from few respondents by communicating with them directly and
discussing their views about the organization. Most of these included informal discussion with
the employees. One of the other sources of collecting the primary data was by distributing the
questionnaires and getting back the responses for them. Such questionnaires were distributes
among the production employees and also the executive level employees.
Secondary Data:
Secondary data has been collected from the following sources:
Books and journals at the organization and the college library.
Through the internet.
SAMPLING:
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern, especially for
the purposes of statistical inference.
Convenience sampling:
Convenience sampling is a type of nonprobability sampling which involves the sample being
drawn from that part of the population which is close to hand. That is, a sample population
selected because it is readily available and convenient. It may be through meeting the person or
including a person in the sample when one meets them or chosen by finding them through
technological means such as the internet or through phone.
Sample Size
The size of the sample selected for study is 200 units.
DATA ANALYSIS
Collected primary and secondary data are scheduled to suitable table for the purpose of
analysis. Suitable statistical tools were applied in various places for analysis.
TOOLS FOR DATA ANALYSIS
The collected data have been analyzed with the help of tools like simple percentage
method, chi square test.
Data collected was analyzed using tools like;
Percentage analysis
Chi-Square test
SIMPLE PERCENTAGE ANALYSIS
Simple percentage analysis refers to a ratio. With the help of absolute figures it will be
difficult to interpret any meaning from the collected data, but when percentages are found out
then it becomes easy to find the relative difference between two or more attributes.
No. of Respondents
Percentage = × 100
Total Number of Respondents
CHI-SQUARE TEST
The Chi-square test is for testing the independence of two variables and testing hypotheses
concerning proportions. One of the tests of proportions is that of testing the differences among
several population proportions, which is an extension of testing the difference between two
population proportions. This Chi-square test is used for testing the difference between two
population proportions, testing the difference among several population proportions. The Chi-
square test can be used to test the differences among (c) population proportions by using a
tabular design for the analysis of the frequencies
Chi-Square test enables whether or not two attributes are associated. Chi-Square is
calculated as follows.
(O – E)2
2 =
E
Where
O = observed frequency of the cell in row and column
E= expected frequency of the cell in rows and column
Degree of freedom ( DF ):
DF = (r-1)* (c-1)
Where
R=Number of rows in the table.
C=Number of columns in the table.
2.5 Limitations of the study
Some customers hesitate to fill the questionnaire.
It is not assured that the responses from all the respondents are true as some of them
may like to tell the incorrect information.
The survey was conducted in a short period as a part of the curriculum.
Certain individuals took more time than require for answering the questionnaire.
CHAPTER -3
ANALYSIS AND INTERPRETATION
Table No.1
Table showing the Opinion about Gender
Particulars No. of Respondents Percentage
Male 152 76
Female 48 24
TOTAL 200 100
Interpretation
From the above table it is clear that 76% of the respondents are male and the remaining
24 % of the respondents are female.
CHART NO.1
Chart showing the Opinion about Gender
0
10
20
30
40
50
60
70
80
Male Female
76%
24%
Table No.2
Table showing the Opinion about Age
Interpretation
From the above table 42.5 % of the respondents are coming under the age group of 21 –
30 yrs and 32.5 % of the respondents are under the age group of 31 – 40 years and Above 41 are
15%.
Particulars
(In years)
No. of Respondents Percentage
18-20 20 10
21 – 30 85 42.5
31 – 40 65 32.5
Above 41 30 15
TOTAL 200 100
CHART NO.2
Chart showing the Opinion about Age
0
5
10
15
20
25
30
35
40
45
18-20 21 – 30 31 – 40 Above 41
10%
43%
32%
15%
Table No.3
Table showing the Consumer awareness
Awareness of aavin
products
No. of Respondents Percentage
Friends 20 10
Relatives 30 15
Neighbors 40 20
Advertisement 110 55
Total 200 100
Interpretation:
From the above table it is clear that, 10% of respondents know about the aavin milk
through friends,15% of the respondents are through relatives, 20% of the respondents are
through neighbors and 55% of respondents are through advertisement.
CHART NO.3
Chart showing the Consumer awareness
10%
15%
20%
55%
Friends
Relatives
Neighbors
Advertisement
Table No.4
Table showing the frequency level of buying
Frequency in buying No. of respondents Percentage
Once in a day 150 75
Twice in a day 40 20
Once in a week 5 2.5
Occasionally 5 2.5
Total 200 100
Interpretation:
From the table it is clear that, 75% of respondents prefer to buy Aavin milk once in a
day,20% of respondents prefer to buy Aavin milk twice in a day,2.5% of respondents prefer to
buy Aavin milk once in a week and 2.5% of respondents prefer to buy milk occasionally.
CHART NO.4
Chart showing the frequency level of buying
75%
20%
3% 2%
0
10
20
30
40
50
60
70
80
Once in a day Twice in a day Once in a week Occasionally
Table No.5
Table showing the consumer preference towards aavin products
Customer preference No. of respondents Percentage
Milk 120 60
Sweets 25 12.5
Curd 30 15
Butter 25 12.5
Total 200 100
Interpretation:
From the table it is clear that, 60% of respondents prefer to buy Aavin milk ,12.5% of
respondents prefer to buy Aavin sweets ,15% of respondents prefer to buy Aavin curd and
12.5% of respondents prefer to aavin butter.
CHART NO.5
Chart showing the consumer preference towards aavin products
0
10
20
30
40
50
60
Milk Sweets Curd Butter
60%
13%15%
12%
Table No.6
Table showing the customers preference towards Quantity
Quantity No. of respondents Percentage
2 Litre 20 10
1 Litre 160 80
½ Litre 10 5
¼ Litre 10 5
Total 200 100
Interpretation:
From the table it is clear that, 10% of respondents buy 2 litre of milk per day,80% of
respondents prefer to buy1 liter ,5% of respondents buy ½ Liter and 5% of respondents buy ¼
per day.
CHART NO.6
Chart showing the customers preference towards Quantity
0
10
20
30
40
50
60
70
80
2 Litre 1 Litre ½ Litre ¼ Litre
10%
80%
5% 5%
Table No.7
Table showing the Reason of Purchase
Reason of purchase No. of Respondents Percentage
Quality 120 60
Freshness 25 12.5
Neat package 15 7.5
Easy availability 40 20
Total 200 100
Interpretation:
From the above table it is clear that, 60% of respondents prefer to buy aavin milk due to
quality, 12.5% of respondents prefer to buy due to freshness, 15% of respondents buy due to
neat package and 20% of respondents buy because of easy availability.
CHART NO.7
Chart showing the Reason of Purchase
60%
13%7%
20%
0
10
20
30
40
50
60
70
Quality Freshness Neat package Easy
availability
Table No.8
Table showing the Price Level
Price level No. of Respondents Percentage
Strongly Agree 50 25
Agree 100 50
Neither agree nor disagree 25 12.5
Disagree 20 10
Strongly Disagree 5 2.5
Total 200 100
Interpretation:
From the above table it is clear that, 25% of respondents are strongly agree with the
price level of aavin milk, 50% of the respondents are agreed, 12.5% of the respondents are
neither agree nor disagree,10% of respondents are disagree and 2.5% of respondents are
strongly disagree.
CHART NO.8
Chart showing the Price Level
05
101520253035404550
Strongly
Agree
Agree Neither
agree nor
disagree
Disagree Strongly
Disagree
25%
50%
13%10%
2%
Table No.9
Table showing the Quality Level
Quality level No. of Respondents Percentage
Strongly Agree 40 20
Agree 120 60
Neither agree nor disagree 30 15
Disagree 5 2.5
Strongly Disagree 5 2.5
Total 200 100
Interpretation:
From the above table it is clear that, 20% of respondents are strongly agree with the
quality of aavin milk, 60% of the respondents are agreed, 15% of the respondents are neither
agree nor disagree,2.5% of respondents are disagree and 2.5% of respondents are strongly
disagree.
CHART NO.9
Chart showing the Quality Level
20%
60%
15%
2.5% 2.5%
Strongly Agree
Agree
Neither agree nor
disagree
Disagree
Strongly Disagree
Table No.10
Table showing the Consumer Awareness regarding ISI and Agmark standards
Consumer awareness No. of Respondents Percentage (%)
Yes 50 25
No 150 75
Total 200 100
Interpretation:
From the table it is clear that, 25% of the respondents have the awareness regarding ISI
and Agmark standards and 75% of the respondents are not having the awareness regarding ISI
and Agmark standards.
CHART NO.10
Chart showing the Consumer Awareness regarding ISI and Agmark standards
0
10
20
30
40
50
60
70
80
Yes No
25%
75%
Table No.11
Table showing the Consumer Awareness regarding Advertisement
Consumer awareness No. of Respondents Percentage (%)
Yes 120 60
No 80 40
Total 200 100
Interpretation:
From the above table it is clear that, 60% of the respondents have the awareness of aavin
milk through advertisement and 40% of the respondents have not seen the advertisement.
CHART NO.11
Chart showing the Consumer Awareness regarding Advertisement
0
10
20
30
40
50
60
Yes No
60
40%
Table No.12
Table showing the availability of aavin stall near by area
Availability No. of Respondents Percentage (%)
Yes 110 55
No 90 45
Total 200 100
Interpretation:
From the above table it is clear that, 55% of the respondents say aavin stall is available
near by their area and 45% of the respondents say aavin stall is not available nearby their area.
CHART NO.12
Chart showing the availability of aavin stall nearby area
0
10
20
30
40
50
60
Yes No
55%
45%
Table No.13
Table showing the Consumer awareness regarding availability of all aavin products in the
stall
Awareness about all
aavin products in stall
No. of Respondents Percentage
Strongly Agree 30 15
Agree 30 15
Neither agree nor disagree 130 65
Disagree 5 2.5
Strongly Disagree 5 2.5
Total 200 100
Interpretation:
From the above table it is clear that, 15% of the respondents are strongly agree that
they are aware about the availability of all aavin products in the stall,15% of the respondents
are agreed, 65% of the respondents are neither agree nor disagree,2.5% of respondents are
disagree and 2.5% of respondents are strongly disagree.
CHART NO.13
Chart showing the Consumer awareness regarding availability of all aavin products in the
stall
15%
15%
65%
3% 2% Strongly Agree
Agree
Neither agree nor
disagree
Disagree
Strongly Disagree
Table No.14
Table showing the purchasing level during the train travel
Purchasing level No. of Respondents Percentage
Yes 100 50
No 100 50
Total 200 100
Interpretation:
From the above table it is clear that, 50% of the respondents have the habit of buying
aavin milk in the time of train travel and 50% of the respondents do not have the habit of
buying aavin milk in the time of train travel.
CHART NO.14
Chart showing the purchasing level during the train travel
50% 50%
0
10
20
30
40
50
60
Yes No
Table No.15
Table showing the consumer preferences of aavin stall in railway station
Consumer preferences No. of Respondents Percentage
Yes 110 55
No 90 45
Total 200 100
Interpretation:
From the above table it is clear that, 55% of the respondents need a aavin stall in
railway station and 45% of the respondents do not need a aavin stall in railway station.
CHART NO.15
Chart showing the consumer preferences of aavin stall in railway station
0
10
20
30
40
50
60
Yes No
55%
45%
Table No.16
Table showing the Consumer opinion towards the budget level
Opinion of price comes
under the budget
No. of Respondents Percentage
Strongly Agree 20 10
Agree 140 70
Neither agree nor disagree 25 12.5
Disagree 10 5
Strongly Disagree 5 2.5
Total 200 100
Interpretation:
From the above table it is clear that, 10% of the respondents are strongly agree that the
aavin milk comes under their budget, 70% of the respondents are agreed, 12.5 % of the
respondents are neither agree nor disagree, 5% of the respondents are disagree and 2.5% are
strongly disagree.
CHART NO.16
Chart showing the Consumer opinion towards the budget level
10%
70%
12%5% 3%
0
10
20
30
40
50
60
70
80
Strongly
Agree
Agree Neither
agree nor
disagree
Disagree Strongly
Disagree
Table No.17
Table showing the satisfaction of consumers towards service
Satisfaction of Service No. of Respondents Percentage
Strongly Agree 60 30
Agree 100 50
Neither agree nor disagree 20 10
Disagree 15 7.5
Strongly Disagree 5 2.5
Total 200 100
Interpretation:
From the above table it is clear that, 30% of the respondents are strongly agree with
the service provided by aavin, 50% of the respondents are agreed, 10% of the respondents
are neither agree nor disagree,7.5% of respondents are disagree and 2.5% of respondents are
strongly disagree
CHART NO.17
Chart showing the satisfaction of consumers towards service
30%
50%
10%7%
3% Strongly Agree
Agree
Neither agree nor
disagree
Disagree
Strongly Disagree
Table No.18
Table showing the opinion of consumers towards package
Quality of package No. of Respondents Percentage
Strongly Agree 60 30
Agree 80 40
Neither agree nor disagree 30 15
Disagree 20 10
Strongly Disagree 10 5
Total 200 100
Interpretation:
From the above table it is clear that, 30% of the respondents are strongly agree that the
package of aavin milk are neat & clean, 40% of the respondents are agreed, 15% of the
respondents are neither agree nor disagree,10% of respondents are disagree and 5% of
respondents are strongly disagree.
CHART NO.18
Chart showing the opinion of consumers towards package
0
5
10
15
20
25
30
35
40
Strongly
Agree
Agree Neither
agree nor
disagree
Disagree Strongly
Disagree
30%
40%
15%
10%
5%
Table No.19
Table showing the satisfaction level of consumers towards Freshness
Satisfaction level of
Freshness
No. of Respondents Percentage
Highly satisfy 20 10
Satisfy 60 30
Neutral 60 30
Dissatisfy 40 20
Highly dissatisfy 20 10
Total 200 100
Interpretation:
From the above table it is clear that, 10% of the respondents are highly satisfy with the
freshness of aavin milk, 30% of the respondents are satisfied, 30% of the respondents are
neutrally accept the statement ,20% of respondents are dissatisfied and 10% of respondents are
highly dissatisfied.
CHART NO.19
Chart showing the satisfaction level of consumers towards Freshness
0
5
10
15
20
25
30
Highly
satisfy
Satisfy Neutral Dissatisfy Highly
dissatisfy
10%
30% 30%
20%
10%
Table No.20
Table showing the Overall satisfaction of consumers compared to other products
Satisfaction level of
consumers No. of Respondents Percentage
Highly satisfy 100 50
Satisfy 80 40
Neutral 10 5
Dissatisfy 5 2.5
Highly dissatisfy 5 2.5
Total 200 100
Interpretation:
From the above table it is clear that, 50% of the respondents are highly satisfy with the
aavin milk& milk products when compared to other products, 40% of the respondents are
satisfied, 5% of the respondents are neutrally accept the statement ,2.5% of respondents are
dissatisfied and 2.5% of respondents are highly dissatisfied.
CHART NO.20
Chart showing the Overall satisfaction of consumers compared to other products
50%
40%
5% 3% 2%
Highly satisfy
Satisfy
Neutral
Dissatisfy
Highly dissatisfy
Table No.21
CROSS TABULATION BETWEEN GENDER AND OPINION TOWARDS THE
BUDGET LEVEL
GENDER
OPINION TOWARDS THE BUDJET LEVEL Total
Strongly
Agree Agree
Neither
agree nor
disagree
Disagree Strongly
Disagree
Male 12 117 14 6 3 152
Female 8 23 11 4 2 48
20 140 25 10 5 200
Source : Survey data
(H0) : There is no significant relationship between gender and opinion towards the budget
level.
(H1) : There is significant relationship between gender and opinion towards the budget
level.
CHISQUARE TEST
Calculated 2 Value = 14.793
Degree of freedom = 4
Table value = 9.488
Significant level = Significant at 5% level
It is observed from the above table that the calculated value of chi-square is greater than
the table value. Hence the null hypothesis is rejected and it is concluded that there is significant
relationship between gender and opinion towards the budget level.
TABLE.22
CROSS TABULATION BETWEEN AGE AND CUSTOMER SERVICE
AGE
CUSTOMER SERVICE
Total Strongly
Agree Agree
Neither agree
nor disagree Disagree
Strongly
Disagree
18-20 8 4 4 3 1 20
21 – 30 21 56 5 2 1 85
31 – 40 23 31 6 4 1 65
Above 41 8 9 5 6 2 30
60 100 20 15 5 200
Source : Survey data
(H0) : There is no significant relationship between age and customer service.
(H1) : There is significant relationship between age and customer service.
CHISQUARE TEST
Calculated 2 Value = 31.669
Degree of freedom = 12
Table value = 21.026
Significant level = Significant at 5% level
It is observed from the above table that the calculated value of chi-square is greater than the table
value. Hence the null hypothesis is rejected and it is concluded that there is significant relationship
between age and customer service.
TABLE.23
CROSS TABULATION BETWEEN INFLUENCING TO KNOW AND PURCHASING
LEVEL DURING TRAIN TRAVEL
Factor
Purchasing Level During Train Travel
Total
Yes No
Friends 9 11 20
Relatives 12 18 30
Neighbors 8 32 40
Advertisement 71 39 110
100 100 200
Source : Survey data
(H0) : There is no significant relationship between influencing to know and purchasing level
during train travel.
(H1) : There is significant relationship between influencing to know and purchasing level
during train travel.
CHISQUARE TEST
Calculated 2 Value = 25.109
Degree of freedom = 3
Table value = 7.815
Significant level = Significant at 5% level
It is observed from the above table that the calculated value of chi-square is greater than
the table value. Hence the null hypothesis is rejected and it is concluded that there is significant
relationship between influencing to know and purchasing level during train travel.
CHAPTER-4
4.1 Findings
From the analysis, it was found that 76 % of the respondents are Male and remaining
people are female.
42.5% of the respondents are in the age group of 21-30 years.
55% of respondents know about the aavin milk through advertisement.
75% of the respondents prefer to buy Aavin milk once in a day and about 20% of
respondents prefer to buy twice in a day.
It is found that 60% of respondents mainly prefer to buy milk in aavin and the remaining
people prefer to buy aavin sweet,curd and butter.
80% of respondents prefer to buy1 litre of aavin milk per day and 10% of people buy 2
litre per day.
60% of respondents prefer to buy aavin milk due to quality and remaining people prefer
because of freshness, neat package and easy availability.
Most people (75%) strongly agreed that the price of the Aavin milk and milk products are
reasonable and affordable.
Most of the respondents (80%)agree that the aavin milk and milk products are high in quality,
very few feel that it is inferior in quality.
Most of the respondents (75%) are not aware of the fact that Aavin milk and milk products are
ISI and AGMARK certified.
60% of the respondents have the awareness of aavin milk through advertisement.
55% of the respondents know that the aavin stall is available nearby their area and the
remaining 45% do not know the aavin stall is available in their area.
65% of respondents neutrally agreed that Aavin milk and milk products are always available in
the Aavin stall.
50% of the respondents have the habit of buying aavin milk in the time of train travel
and remaining people do not have the habit of buying milk during travel.
It is found that 70% of the respondents are agreed that the aavin milk comes under their
budget.
50% of the respondents are agreed with the service provided by aavin.
40% of the respondents are agreed that the package of aavin milk is neat & clean.
40% of the respondents are satisfied with the freshness of aavin milk and the remaining
people are not highly satisfied with the freshness.
50% of the respondents are highly satisfied with the aavin milk& milk products when
compared to other products.
4.2 SUGGESTIONS
The amount spent on the advertisement is very low; most of the people still don’t know what all
the products available in the Aavin stall are. The sales of the Aavin products can only be
increased only if people know about them and the only way to achieve is by advertisement.
Various Aavin product names can be made to display along with the pneumonic symbol at the
side of the Aavin vehicles and in the stalls.
Advertisement plays a crucial role in promoting the products. A small ad can be given in the
front page of the local daily regarding the qualities of the Aavin milk products once in a week.
This will create some awareness about the Aavin milk products.
The sales of the Aavin milk and milk products can be increased by setting a Aavin stall at the
Erode Railway station. Since the Erode junction being the hub to many rail routes, hundreds of
trains from all over India pass through the junction so surely there will be a huge response from
the train travelers for the Aavin milk and milk products.
The sale can also be increased by some sales strategies. Since most of the consumers belong to
middle and lower middle class category they will not be able to pay the money daily so credit
system can be followed by collecting some deposit at the starting itself. Free door delivery can
also increase the sales of the Aavin products.
Automatic vending booths may be installed in main areas in the Erode town to facilitate the
customers to purchase milk round the clock.
Aavin website may be updated and popularized.
4.3 CONCLUSION
Promotion of sales and knowing consumer behaviour are important aspects for selling
the product and achieve the highest sales level in the market. Through this study, we conducted
the research entitled ―A study on Consumer Behaviour and Sales Promotion of Aavin Milk and
Milk Products‖. This study helps us to know the sales promotion strategies adopted by the
company and consumer perception towards the product. It also provides the steps to improve
the sales in future and attain the highest growth level in the market.
Bibliography
1. Philip Kotler – Marketing Management, Prentice Hall of India, 2004.
2. C.R.Kothari – research methodology (methods and techniques), New Age
International Publishers, 2007.
Website
www.aavinmilk.com
www.marketingstrategies.org
www.marketingprinciples.com
A Study on Sales promotion and Consumer behavior
of Aavin Milk & Milk Products
QUESTIONNAIRE
Personal data:
Name:
Gender: Male ( ) Female ( )
Age: a)18-20 b)21-30 c)31-40 d)Above 41
Questions:
1. How did you come to know about aavin milk & milk products?
a) Friends
b) Relatives
c) Neighbours
d) Advertisement
2. How frequently will you buy aavin milk products?
a) Once in a day
b) Twice in a day
c) Once in a week
d) Occasionally
3. What kind of aavin products do you prefer to buy?
a) Milk
b) Sweets
c) Curd
d) Butter
4. What is the quantity of aavin milk will you buy?
a) 2 litre
b) 1 litre
c) ½ litre
d) ¼ litre
5. Why you prefer aavin product?
a) Quality
b) Freshness
c) Neat package
d) Easy availability
6. The prices of aavin milk products are reasonable?
a) Strongly Agree
b) Agree
c) Neither agree nor disagree
d) Disagree
e) Strongly Disagree
7. What do you feel about the quality of aavin milk products?
a) Very High
b) High
c) Satisfactory
d) Low
e) Very low
8. Do you know that aavin products are ISI and AGMARK certified?
a) Yes
b) No
9. All aavin milk products are sufficiently available in the stall?
a) Strongly Agree
b) Agree
c) Neither agree nor disagree
d) Disagree
e) Strongly Disagree
10. Have you seen any aavin advertisement?
a) Yes
b) No
11. Is there aavin stall available nearby your home?
a) Yes
b) No
12. Do you aware that all the aavin products are available in the stall?
a) Strongly Agree
b) Agree
c) Neither agree nor disagree
d) Disagree
e) Strongly Disagree
13. While you travel in train will you prefer to have aavin milk?
a) Yes
b) No
14. Do you need aavin stall in railway station?
a) Yes
b) No
15. Whether the aavin products come under your budget?
a) Strongly Agree
b) Agree
c) Neither agree nor disagree
d) Disagree
e) Strongly Disagree
16. What do you feel about the service of aavin milk products?
a) Strongly Agree
b) Agree
c) Neither agree nor disagree
d) Disagree
e) Strongly Disagree
17. Do you feel that aavin milk package are clean & neat?
a) Strongly Agree
b) Agree
c) Neither agree nor disagree
d) Disagree
e) Strongly Disagree
18. How do you feel about the freshness of aavin milk products?
a) Highly satisfy
b) Satisfy
c) Neutral
d) Dissatisfy
e) Highly Dissatisfy
19. Whether you are satisfy with the aavin milk & milk products when compared to other
milk products?
a) Highly satisfy
b) Satisfy
c) Neutral
d) Dissatisfy
e) Highly Dissatisfy
20. Suggestions:
_______________________________________________________________________
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Thanks for your time
