MRP V8

A STUDY OF CRITICAL FACTORS RESPONSIBLE FOR THE LOW

SALES OF PACKAGED ATTA

CHAPTER-1

INTRODUCTION

1



1. Introduction

Food is powerful symbol of cultural identity; wheat considered to be a staple part of diet for most

of northern and western part of India, is also finding its way into the culinary habits of the south

and the east where rice has traditionally ruled the platter.

The bulk of wheat is converted into whole wheat flour or Atta, used to make flat bread or roti.

While Atta and roti are central to Indian food, packaged atta is a novel concept. The market is

characterized by traditional chakki atta, where the housewife buys grain and has it freshly ground

in a local flour mill or chakki. The current size of branded packaged atta is approximately one

million tons or 2.2% of total market of approximately 45 million tones.

2%

98%

Consumption of Packaged Atta

Packaged Atta Unpackaged Atta

It is a country of unity in diversity. But there is not much variation in the food habits of people.

Particularly when it comes to main component of Indian diet, Roti is indispensible. Except for a

few states in the south, rotiis the main course of Indian food. Roti is made of wheat flour. Thus

considering the amount spent on food, approximately 20 per cent of food expenditure is on flour.

In this study atta is going to be used in place of wheat flour.

India has seen rapid economic growth in the past two decades after the new economic policy.

The economic growth has certainly bettered the life style and standard of living of the middle

class, if not rural Indians. The changing life style and the aggressive marketing of food items

2

have completely changed the buying pattern of consumers. Consumers are buying packaged oil,

masale, leaf tea, pickle, beverages, rice, fruits and what not. The penetration is so intense that

people are buying one rupee water pouches.

In the light of such changing scenario, is seems pretty strange as why the packaged atta industry

is not keeping the pace with the growth of other packaged items in India. The branded atta

market (estimated between 2.3-3 lakhs tones and valued at Rs 400-600 crores) is increasing in

the last few years. According to some other estimates merely five per cent is the consumption of

packaged atta out of total consumption.

Packaging Industry in India

An increasing population and growing consumer demand for packaged foods has forced food

and beverages industry to look at new technologies that provide flexibility, ease of operation and

constant tracking of the production process. Complete transparency is required along the

production process for assuring consumers health and hygiene. This demands continuous

monitoring and efficient traceability of the entire production process in the food manufacturing

plant.

Interest in biodegradable disposable plastic items has steadily grown over the last decade.

Disposable packaging materials used to ship and protect purchased items as well as disposable

containers used for food and drink are of special interest. The idea that one time use items can be

disposed off with the peace of mind, that they will not remain for centuries in a landfill, or as

litter, is one of the tenets driving the recent interest in "green" technologies and lifestyles. With

packaging materials, the reduction in usage of raw materials, re-use and recycling is of course

the best route to sustainable lifestyle. However, for various reasons, in practice, much of the

material ends up being discarded to a landfill or accidentally shows up as litter. For these

instances, it is advantageous to have a plastic material that would biodegrade when exposed to

environments where other biodegradable materials are undergoing decay.

3

Market

Indian Food and Beverages forecast (2007-2011) gives an in-depth analysis of the present and

future prospects of the Indian food and beverages industry. It looks into the industry in detail

with focus on organized food retailing, consumer food purchasing behavior, food processing

industry and packed/convenience food industry. This report helps clients to analyze the factors

and examine the opportunities critical to the success of food and beverages industry in India.

With vast population base, growing middle class and strong macroeconomic environment, the

Indian food & drinks market has emerged as the one of the fastest growing segments in the

Indian retail industry. Rapid lifestyle transformation, particularly among those living in urban

areas, has resulted into a dramatic increase in the demand for processed or health food, packaged

and ready-to-eat food products. Arrival of food multinationals and proliferation of fast food

outlets have further added to the growth in this industry. The changing scenario of the retail

industry, like opening up of new supermarkets/hypermarkets, shopping malls and fast food

outlets, coupled with favorable industry trends, is about to bring radical shifts in the food & drink

industry, says “Indian Food and Drinks Market: Emerging Opportunities”, a latest industry

analysis by RNCOS.

Almost all the segments analyzed in the report are found to be growing at rapid pace even in the

phase of economic crisis, especially the alcoholic drinks segment, which is expected to reach 3

Billion Liter mark by 2012 from around 1.95 Billion Liters in 2008, has been outperforming

other segments in terms of sales growth and concreting a solid platform for stiff competition in

the domestic market among existing as well as new market players.

The low brand loyalty and price-sensitive consumer behavior is still preventing the Indian

market to unfold its full potential. However, it will require balanced brand portfolio strategies,

comprising of diverse product mix with superb level of quality and that too on an affordable

price. This is expected to result into an overall market progress in which the consumer will be

benefited the most.

4

The report provides in-depth research and rational analysis on the food & drinks industry in

India. It provides detailed overview of the consumption patterns of Indians in various food

segments, like milk, fruits, vegetables, meat, etc. The beverage segment talks about the type of

beverages, their sales and consumption patterns among the Indian populace. The report aims at

assisting clients in analyzing the potential growth areas, challenges and drivers critical for the

Indian food & drinks industry.

Opportunity

Supermarket sales will expand at a much higher rate than other retail formats. This is because

greater number of higher income Indians will prefer to shop at supermarkets because of

convenience, higher standards of hygiene, and attractive ambience.

It is expected that fruit consumption will increase at a CAGR of 4.33% for the period spanning

from 2007-2011, highest among all the food products taken in this report.

The processed-food market is the main focus for foreign companies as this segment is

underdeveloped and presents enormous potential for growth. The growth of modern, organized

retailing — in contrast to the kiosks and small shops from which Indians have been purchasing

food traditionally — will also increase the demand for value-added foods.

Rising household incomes, increasing urbanization, changing lifestyles and the rapid growth of

the private-sector and dairy-processing industry should lead to greater demand for value-added,

milk-based products, such as processed cheese, table butter and ice cream.

Rising incomes will make fish more affordable for a larger segment of the population. It is

expected that the consumption per head will increase at a CAGR of 3.45% for the forecasted

period.

The growth rate of soft drink sales will decelerate during the forecasted period due to pesticide

contamination issues and growing popularity of fruit juice drinks and bottled water.

5

Coffee consumption is likely to expand at a rapid rate during the forecasted period. It is expected

that it will increase at a CAGR of 10.05% for the period spanning from 2007-2011.

Ready to cook food

The ready-to-cook food category has been one of the rising stars of the food industry. Since the

inception of the category, it has shown strong growth outstripping its nearest competitor, the

ready meal. Ready-to-cook foods are consistent with modern consumer trends towards greater

involvement in cooking and the desire to use natural, unprocessed ingredients.

The market has continued to grow although the rate of growth is slowing. In 2008, the market is

expected to grow by nearly 8% to £543 million. Household penetration of ready-to-cook foods

has steadily increased. However, consumer attitudes towards ready-to-cook foods are

deteriorating with increasing numbers questioning their role.

This report reviews recent developments in the ready-to-cook food market with a special

emphasis on interpreting the impact of changing consumer attitudes on future sales. It also aims

to test the following hypothesis: “Is the read

6



CHAPTER-2

Introduction to Food Industry

7



2. Introduction to Food Industry

India is the world's second largest producer of food next to China, and has the potential of being

the biggest with the food and agricultural sector. The total food production in India is likely to

double in the next ten years and there is an opportunity for large investments in food and food

processing technologies, skills and equipment, especially in areas of Canning, Dairy and Food

Processing, Specialty Processing, Packaging, Frozen Food/Refrigeration and Thermo Processing.

Fruits & Vegetables, Fisheries, Milk & Milk Products, Meat & Poultry, Packaged/Convenience

Foods, Alcoholic Beverages & Soft Drinks and Grains are important sub-sectors of the food

processing industry. Health food supplements are another rapidly rising segment of this industry

which is gaining vast popularity amongst the health conscious consumers.

India is one of the world’s major food producers but accounts for less than 1.5 per cent of

international food trade. This indicates vast scope for both investors and exporters. Food exports

in 1998 stood at US $5.8 billion whereas the world total was US $438 billion. The Indian food

industries sales turnover is Rs 140,000 crore (1 crore = 10 million) annually as at the start of year

2000. The industry has the highest number of plants approved by the US Food and Drug

Administration (FDA) outside the USA.

India's food processing sector covers fruit and vegetables; meat and poultry; milk and milk

products, alcoholic beverages, fisheries, plantation, grain processing and other consumer product

groups like confectionery, chocolates and cocoa products, Soya-based products, mineral water,

high protein foods etc. We cover an exhaustive database of an array of suppliers, manufacturers,

exporters and importers widely dealing in sectors like the -Food Industry, Dairy processing,

Indian beverage industry etc. We also cover sectors like dairy plants, canning, bottling plants,

packaging industries, process machinery etc.

8

The most promising sub-sectors includes -Soft-drink bottling, Confectionery manufacture,

Fishing, aquaculture, Grain-milling and grain-based products, Meat and poultry processing,

Alcoholic beverages, Milk processing, Tomato paste, Fast-food, Ready-to-eat breakfast cereals,

Food additives, flavors etc.

Company Profile

Aashirvaad

At ITC Aashirvaad, extra care is taken to keep things as natural as possible. The way Mother

Nature intended for them to be. That is why you will see that a lot of traditional, sometimes even

cumbersome methods that the world has long left behind are adopted, so that you can have a

taste of the authentic. In our quest to provide you wholesome goodness, the finest of ingredients

are sourced, directly from the farmers through our e-choupals. ITC’s e-choupal initiative, aims to

confer the power of expert knowledge on even the smallest individual farmer. Thus, it is

enhancing its competitiveness in the global market. A walk through our range our products might

well seem like a journey through the good old world.

.

Aashirvaad Atta was launched on 27th May 2002 and within a short span of 7 years has become

the number one in branded packaged atta across the country. Aashirvaad Atta is made from the

choicest grains - heavy on the palm, golden amber in color and hard in bite. It is carefully ground

using modern 'chakki - grinding' process for the perfect balance of color, taste and nutrition

which also ensures that Aashirvaad atta contains 0% Maida and is 100% Sampoorna Atta. The

dough made from Aashirvaad Atta absorbs more water; hence roti’s remain soft longer. The

wheat for Aashirvaad Atta is sourced directly from farmers through ITC's e-choupals.

9

Aashirvaad Select 100% MP Sharbati atta comes from the plush, fertile soil of Madhya Pradesh,

tended by the right amounts of sunshine and rainfall. The land here truly sprouts gold. The gold

that we call ´sharbati´. The ´sharbati′ wheat is sourced directly from farmers through ITC′s e-

choupals and then blended using the traditional ´chakki-grinding′ method to give you that

superior, discerning taste that you well deserve.

Aashirvaad Atta with Multigrain: From the stable of India’s most trusted Atta brand comes a

new and improved variety – Aashirvaad Atta with Multigrain. This all-new variant is designed to

provide nourishment for people of all ages and is an integrated mix of six different grains –

wheat, soya, channa, oat, and maize phylum husk – which gives a better and healthier option for

the consumers. Aashirvaad Atta with Multigrain is an excellent source of vitamins which is vital

in strengthening immunity and; extra protein content to improve body strength. The extra fiber

makes your food easier to digest; low content of saturated fat keeps your heart smiling all

through the day and above all, still retaining the same great taste!!

Whole Wheat Atta - 0% Maida and 100% Atta: Aashirvaad Whole Wheat Atta has 0% Maida

and 100% atta. This means you serve soft, fluffy roti’s and a whole lot of health and happiness.

Shakti Bhog

Established in the year 1970, we, "Shakti Bhog Foods Ltd.", are the most reputed name in the

field of food products. Our brand- Shakti Bhog is India's fastest selling wheat flour and has made

us a popular name in the global market. The distinctiveness of our products and further

broadening of product lines has established us as the most acknowledged manufacturer and

exporter of Wheat Flour, Basmati and Non-Basmati Rice, Pulses and Beans, Corn Flour, Maize

Flour, Atta, Mustard Oil, Pickles and Samoline (Suji). Our impeccable quality products, cost

effective production process, voluminous experience of the market and prompt delivery has

fetched us tremendous customer response in overseas markets like USA, New Zealand,

Australia, UAE, Qatar and host of other countries. The work culture of our organization is

focused on high performance, innovation, entrepreneurship and empowerment. Our products

have been well-appreciated by all our clients, which motivates us to elevate the standards of

10

excellence.

We are a leading producer in milled product segment in Indian processed food industry, products

like Packaged Atta (Whole Wheat Flour), Besan (Gram Flour), Samoline (Suji), Basmati Rice

and Dalia (Porridge) are part of our product line. We produce three kinds of Flour, two kinds of

Porridge and different variety of Basmati Rice. Absolute hygienically proven and tested quality

checks are undertaken at every level of the production process, in order to make sure that only

quality proven batches of products are dispatched in the market.

Pillsbury

We have a range of innovative brands all driving our mission of making consumers lives

healthier, easier and richer.

Our brands are relevant to a wide range of consumers. We offer households worldwide brands

such as Pillsbury, Green Giant and Betty Crocker. Active professionals enjoy our Nature Valley

products.

We have Haagen-Dazs for consumers of super-premium ice cream.

General Mills India also offers a range of customized products for the foodservice sector.

Pillsbury Chakki Fresh Atta flour provides consumers with a deliciously soft roti’s, along with

the convenience of a packaged, branded product.

11

Pillsbury Chakki Fresh Atta was introduced in 1998 as a high-quality, nutritious alternative to

the age-old tradition of purchasing grain and having it ground at the local “Chakki” or flour mill.

Pillsbury has been recognized as a “super brand” in the branded atta category, and is one of the

leading players, with products distributed in more than 500 towns and 100,000 outlets

throughout India.

Pillsbury Chakki Fresh Atta is 100 percent whole wheat grain atta with fibre - which is important

for a healthy digestive system - natural ingredients for overall health and vitality, plus iron,

which acts as a carrier of oxygen in the body.

Pillsbury Atta with Multi-Grain Launched in 2008 in select cities, this is a first-to-market, unique

blend of seven grains (wheat, oats, soy, raagi, barley, channa dal and maize) that are specially

blended to provide all-around health benefits.

Silver Coin

Initially, company entered into the market with unit pack of 25 Kg, 50 Kg and 90 Kg to meet the

demands from bakeries, hotels, restaurants, functions etc. On creation of best market amongst the

bulk users, company went ahead to meet the demand of end users with consumer pack of 1 Kg to

10 Kg. Unit packaging has been designed in consideration of all types of users residing at metros

and remote areas in the country. This packaging system is being introduced into two separate

sections, in addition to the special unit packaging as per requirements of users with different

brand names.

12



CHAPTER-3

Rationale of the study

13



3. Rationale of the Study

3.1. Statement of the problem

Given the growth of other packaged food items, the packaged atta industry is estimated to grow

at the rate of merely 3 per cent. The slow growth of the above mentioned industry may be due to

several reasons. It is also surprising that the presence of ITC, Hindustan Lever Ltd and even the

global brand Pillsbury is not stimulating the growth of the industry. This is evident from the

advertising space in the television. There is hardly any advertisement of packaged atta during the

prime time of television targeting the Indian housewives through Balika Vadhu, Jhansi Ki Rani,

Ye Rishta Kya Kehlata Hai, etc.

The problem is related to the low sales of packaged atta in the light of the fact that it is inevitable

part of our life. Now the time when people are using everything in packaged form Sand believing

that it would be better than open food, nevertheless they are not giving as much response as they

should give to it.

The major market is of families where both husband and wife are working, office goers or those

families which don’t have a flour mill in vicinity.

Most families still prefer going the traditional way and doubt the quality of packaged atta. The

still practice purchasing wheat from the market, cleaning it by hand, storing them and then taking

small quantities of wheat to neighborhood mill or chakki to get it ground between two stones to

convert it into flour.

Selling packaged flour is almost revolutionary in India, where most Indian housewives still buy

raw wheat in bulk, clean it with hand, store it in metal hampers and carry some to the

neighborhood mill or chakki where it is grinded between two stones. This above analysis makes

this study a useful and important study.

14

3.2 Objectives

The main objective of the study is:

“To study the critical factor responsible for low sales of packaged atta”

The secondary objectives of the study are:

To find out the per cent of households using the packaged atta in urban area

To find out factors that drive people to use the packaged atta

To analyze key decision maker in the household for buying/ not buying the packaged atta

3.3 Scope of the Study

After finding the critical factors responsible for low demand for packaged atta, the study covers

the core marketing concepts viz. Price, Promotion, Place, and Product. The scope of the study, in

terms of geography, is limited to urban area. This study is to know why, what, where, who is

responsible for low sales of packaged atta.

15



CHAPTER-4

Research Methodology

16



Research Methodology

“Research methodology is a method of studying problems whose solutions are to be desired

partly or wholly from facts. These facts may be statements of opinions, historical facts, those

contained in records and reports, the results of tests, answers to questionnaires, experimental data

of any sort, and so forth.”

- By M.S. Monore

Research is the systematic exploration of the region of the unknown to find satisfactory answers

to the questions: what, how and why? It may be diligent enquiry in a scientific manner for

improvement of an existing system or for development of a new one, or for improving a process.

Research has been defined by various authors in different ways. It always begins with the

question or a problem

Research is carried out for two purposes -

1. Discovery of new facts

2. Verification of old one

There are two types of methods

A. Primary data collection method

B. Secondary data collection method

C. Statistical tools

Primary data collection method:

In primary data collection, you collect the data yourself using methods such as interviews and

questionnaires. The key point here is that the data you collect is unique to you and your research

and, until you publish, no one else has access to it.

There are many methods of collecting primary data and the main methods include:

17

a) questionnaires

b) interviews

c) focus group interviews

Observation

B. Secondary data collection method:

All methods of data collection can supply quantitative data (numbers, statistics or

financial) or qualitative data (usually words or text). Quantitative data may often be

presented in tabular or graphical form. Secondary data is data that has already been

collected by someone else for a different purpose to yours.

Thus, research is the systematic exploration of the region of the unknown to find satisfactory

answers to the questions: what, how and why? It may be diligent enquiry in a scientific manner

for improvement of an existing system or for development of a new one, or for improving a

process.

Thereby, the aim of research is to improve, develop and not merely control routine operations.

Characteristics of research

1) Directed towards the solution

2) Require systematic approach

3) Data collection and data analysis

4) Relevancy

5) Expertise

6) Unbiased

7) Control

8) Logical

9) Empirical

18

Defining the problem

Planning a research design

Planning a sample Gathering the data

Every project report conducted scientifically has specified framework for controlling data

collection. This framework is called research design. Its function is to ensure that required data

are collected accurately and effectively

THE RESEARCH PROCESS

Model: 4.1: THE RESEARCH PROCESS

Model: 4.1: THE RESEARCH PROCESS

19

Processing and analyzing the data

Formulating conclusions and

preparing the report

Defining the new problem And so

on

4.1 The Study

The study is conducted in Indore. The study covers different income group of people. It tells

factors why people are using it or not using it.

4.2 The Sample Design

The target respondents are the housewives, retailers and the sales men of shopping mal. The

questionnaire is developed after a pilot survey of some housewives and senior citizens.

Following is the data collection table from the targeted respondents:

Table 4.1: Respondents Profile

Low

Income

Middle

Income

High Income Total

House wives 10 30 10 50

Working Women 10 5 5 20

Senior Citizens 10 5 5 20

Sellers* 4 4 2 10

Total 34 44 22 100

*Low income seller = Local Chakki Owners

Middle income seller = Mom and Pop Store Owners

High income seller = Sales men from shopping malls

In this study, I have taken total 100 respondents from various locations of Indore. Table 4.1

shows the profile of the respondents. The sample is designed in such a way that it is true

representative of the customers. There are mainly four types of respondents, i.e., house wives,

senior citizens, sellers and working wives. All these respondents come from various income

groups. For example, I have taken 10 senior citizens from low income families. This way I have

taken 34, 44 and 22 respondents from low income, middle income and low income families.

20

4.3 Tools for Data Collection

The data has been collected through schedules where the surveyor asked the questions in the

schedule and marked and noted the responses.

4.4 Review of Literature

There are many studies conducted in the buying behavior of people but as such no study has

been conducted to find out the factors responsible for low sales of atta, in particular. The

preferences of the consumers clearly indicate their priority for cleanliness/ freshness of food

products followed by price, quality, variety, packaging, and non-seasonal availability in the food

market and grocery market. (Ali et al, 2010)

Ready to Cook Food

The instant food market in India seems to have taken off this time around, after a few tries

sometime over the last few decades. For a long long time, Nestles Maggi noodles were about the

only big player. Brands like Top Ramen have provided some competition, but only just. With the

recent (reasonable) successes of MTR and Aashirvaad (ITC again) ready to eat foods, it looks

like this market is finally picking up.

Many factors seem to have contributed, part of which is perhaps, the critical mass of nuclear

families with both husband and wife working. Also, the fact that ready to eat stuff is fairly

affordably priced ( about 35 odd rupees per person) and it is far better than eating at a hotel day

in and day out and can be conveniently stored at home for use on a need-to basis.

The ready to eat available today is also more ready to eat than the ready to cook vermicellli and

other mixes that are available in the market. They are neatly packed, quality is assured (there are

hiccups, as I once found out). These are simple microwave and eat or boil the pack in water, eat.

Would I prefer ready to eat over home cooked food? Not yet. In India home cooked food is the

first choice. Eating out is a second choice often, a necessity. Ready to eat lets one be at home

without having to cook (Restaurant home delivery options do exist, but I would count this among

the people who eat out anyway).

21

While this market will grow, there is still space for conveniences to ease cooking, but only if

there is no compromise on the taste, health and cost front. Heat and eat chapatis did not do too

well because of their tendency to crumble on heating. The ready made spice mixes

(masalas) , Everest is the most well known, are a fixture in most Indian kitchen these days as are

ready to use Ginger Garlic pastes and its derivatives. Ready to use Idli batter is available in most

places. Ready to use tamarind mix, coconut milk have not made so much headway.

Ready-Cooked Foods

More and more cooked food canned or otherwise, is taking its place in the market. When canned

goods were first manufactured on a large scale they comprised fruits, vegetables, meats, and fish,

but we are now accustomed to a miscellaneous variety, including soups, baked beans, puddings,

and pudding sauces, spaghetti, hashed meat, and shellfish. Bakery products have a

larger sale than ever, and are found in small towns and even in country districts carried there by

bakers' wagons. In our large cities we find the "delicatessen shop ' very common, where small

portions of cooked meats and fowl may be purchased after the custom of Europe, and these

stores are open even on Sunday.

How shall we decide what is best for us in our buying? We must not condemn entirely the

buying of cooked food without a careful study of the situation. The custom has grown with

changes in our mode of living, especially in cities, where the small apartment is common, and

where gas is the fuel. Under these conditions it is difficult to prepare foods that need long and

slow cooking, and these processes are more expensive when gas is used. The long slow cooking

of soup and beans, the even baking of bread, are difficult to accomplish. The odors from these

processes fill the small apartment, and scent it for some time, and this is unpleasant at all

seasons.

Take another example, the canning and preserving of fruits. The first cost of the fruit is usually

high in the city, and this plus the sugar and the gas, and the labor and the lack of storage space

make it seem impracticable in these conditions, and many people decide in favor of buying

goods already canned. Such housekeeping is simplified by buying cooked products to some

extent. The fireless cooker helps here, but not for all processes. Counting in fuel, the cost is not

so much greater as we might suppose; and comfort and convenience are increased. Under other

22

conditions, even in the city, a different conclusion is reached. If coal is the fuel, and a steady fire

is kept, perhaps in winter for heating purposes, then it is economy to cook most food materials at

home.

In the country and small village different conditions prevail. Here the abundance of certain fruits

in season makes it economical to can and dry, even counting fuel and labor. In some sections

many people can their own vegetables also. However, even in the country in the summer, it is a

decided relief to the farmer's wife, probably short of "help," to win a little leisure by buying

staple bakery products. Here if strict economy is not necessary, is it not better to save strength

rather than money? Each housekeeper must work out these problems for herself.

Marketing Mix

What is the marketing mix?

The marketing mix is probably the most famous marketing term. Its elements are the basic,

tactical components of a marketing plan. Also known as the Four P's, the marketing

mix elements are price, place, product, and promotion. Read on for more details on

the marketing mix.

23

Price

There are many ways to price a product. Let's have a look at some of them and try to understand

the best policy/strategy in various situations.

Premium PricingUse a high price where there is uniqueness about the product or service. This approach is used

where a a substantial competitive advantage exists. Such high prices are charge for luxuries such

as Cunard Cruises, Savoy Hotel rooms, and Concorde flights.

Penetration Pricing

The price charged for products and services is set artificially low in order to gain market share.

Once this is achieved, the price is increased. This approach was used by France Telecom and Sky

TV.

Economy PricingThis is a no frills low price. The cost of marketing and manufacture are kept at a minimum.

Supermarkets often have economy brands for soups, spaghetti, etc.

Price Skimming

Charge a high price because you have a substantial competitive advantage. However, the

advantage is not sustainable. The high price tends to attract new competitors into the market, and

24

the price inevitably falls due to increased supply. Manufacturers of digital watches used a

skimming approach in the 1970s. Once other manufacturers were tempted into the market and

the watches were produced at a lower unit cost, other marketing strategies and pricing

approaches are implemented.

Premium pricing, penetration pricing, economy pricing, and price skimming are the four main

pricing policies/strategies. They form the bases for the exercise. However there are other

important approaches to pricing.

Psychological PricingThis approach is used when the marketer wants the consumer to respond on an emotional, rather

than rational basis. For example, price point perspective is 99 cents not one dollar.

Product Line PricingWhere there is a range of product or services the pricing reflect the benefits of parts of the range.

For example car washes. Basic wash could be $2, wash and wax $4, and the whole package $6.

Optional Product PricingCompanies will attempt to increase the amount customer spend once they start to buy. Optional

'extras' increase the overall price of the product or service. For example airlines will charge for

optional extras such as guaranteeing a window seat or reserving a row of seats next to each other.

Captive Product PricingWhere products have complements, companies will charge a premium price where the consumer

is captured. For example a razor manufacturer will charge a low price and recoup its margin (and

more) from the sale of the only design of blades which fit the razor.

Product Bundle PricingHere sellers combine several products in the same package. This also serves to move old stock.

Videos and CDs are often sold using the bundle approach.

Promotional PricingPricing to promote a product is a very common application. There are many examples of

promotional pricing including approaches such as BOGOF (Buy One Get One Free).

25

Geographical PricingGeographical pricing is evident where there are variations in price in different parts of the world.

For example rarity value, or where shipping costs increase price.

Value PricingThis approach is used where external factors such as recession or increased competition force

companies to provide 'value' products and services toretain sales e.g. value meals at McDonalds.

PlaceAnother element of Neil H.Borden's Marketing Mix is Place. Place is also known as channel,

distribution, or intermediary. It is the mechanism through which goods and/or services are

moved from the manufacturer/ service provider to the user or consumer.

There are six basic 'channel' decisions:

Do we use direct or indirect channels? (e.g. 'direct' to a consumer, 'indirect' via a wholesaler).

Single or multiple channels.

Cumulative length of the multiple channels.

Types of intermediary (see later).

Number of intermediaries at each level (e.g. how many retailers in Southern Spain).

Which companies as intermediaries to avoid ‘intra channel conflict’ (i.e. infighting between

local distributors)?

Selection Consideration - how do we decide upon a distributor?

Market segment - the distributor must be familiar with your target consumer and segment.

Changes during the product life cycle - different channels can be exploited at different points

in the PLC e.g. Foldaway scooters are now available everywhere. Once they were sold via a

few specific stores.

Producer - distributor fit - Is there a match between their polices, strategies, image, and

yours? Look for 'synergy'.

Qualification assessment - establishes the experience and track record of your intermediary.

How much training and support will your distributor require?

26

Types of Channel Intermediaries.

There are many types of intermediaries such as wholesalers, agents, retailers, the Internet,

overseas distributors, direct marketing (from manufacturer to user without an intermediary), and

many others. The main modes of distribution will be looked at in more detail.

1. Channel Intermediaries – Wholesalers

They break down 'bulk' into smaller packages for resale by a retailer.

They buy from producers and resell to retailers. They take ownership or 'title' to goods whereas

agents do not (see below).

They provide storage facilities. For example, cheese manufacturers seldom wait for their product

to mature. They sell on to a wholesaler that will store it and eventually resell to a retailer.

Wholesalers offer reduce the physical contact cost between the producer and consumer e.g.

customer service costs, or sales force costs.

A wholesaler will often take on the some of the marketing responsibilities. Many produce their

own brochures and use their own telesales operations.

3. Channel Intermediaries – Agents

Agents are mainly used in international markets.

An agent will typically secure an order for a producer and will take a commission. They do

not tend to take title to the goods. This means that capital is not tied up in goods. However, a

'stockiest agent' will hold consignment stock (i.e. will store the stock, but the title will remain

with the producer. This approach is used where goods need to get into a market soon after the

order is placed e.g. foodstuffs).

27

Agents can be very expensive to train. They are difficult to keep control of due to the

physical distances involved. They are difficult to motivate.

4. Channel Intermediaries – Retailers

Retailers will have a much stronger personal relationship with the consumer.

The retailer will hold several other brands and products. A consumer will expect to be

exposed to many products.

Retailers will often offer credit to the customer e.g. electrical wholesalers, or travel agents.

Products and services are promoted and merchandised by the retailer.

The retailer will give the final selling price to the product.

Retailers often have a strong 'brand' themselves e.g. Ross and Wall-Mart in the USA, and

Alisuper, Modelo, and Jumbo in Portugal.

5. Channel Intermediaries – Internet

The Internet has a geographically disperse market.

The main benefit of the Internet is that niche products reach a wider audience e.g. Scottish

Salmon direct from an Inverness fishery.

There are low barriers low barriers to entry as set up costs are low.

Use e-commerce technology (for payment, shopping software, etc.)

There is a paradigm shift in commerce and consumption which benefits distribution via the

Internet

Product

For many a product is simply the tangible, physical entity that they may be buying or selling.

You buy a new car and that's the product - simple! Or maybe not. When you buy a car, is the

product more complex than you first thought?

The Product Life Cycle (PLC) is based upon the biological life cycle. For example, a seed is

planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it

28

becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die out

(decline).

The Customer Life Cycle (CLC) has obvious similarities with the Product Life Cycle (PLC).

However, CLC focuses upon the creation of and delivery of lifetime value to the customer i.e.

looks at the products or services that customers NEED throughout their lives.

These are known as the 'Three Levels of a Product.' So what is the difference between the three

products, or more precisely 'levels?'

The CORE product is NOT the tangible, physical product. You can't touch it. That's because the

core product is the BENEFIT of the product that makes it valuable to you. So with the car

example, the benefit is convenience i.e. the ease at which you can go where you like, when you

want to. Another core benefit is speed since you can travel around relatively quickly.

The ACTUAL product is the tangible, physical product. You can get some use out of it. Again

with the car example, it is the vehicle that you test drive, buy and then collect.

The AUGMENTED product is the non-physical part of the product. It usually consists of lots of

added value, for which you may or may not pay a premium. So when you buy a car, part of the

augmented product would be the warranty, the customer service support offered by the car's

manufacture, and any after-sales service.

Another marketing tool for evaluating product is the product life cycle.

29

Promotion

Another one of the 4P's is promotion. This includes all of the tools available to the marketer for

'marketing communication'. As with Neil H.Borden's marketing mix, marketing communications

has its own 'promotions mix.' Think of it like a cake mix, the basic ingredients are always the

same. However if you vary the amounts of one of the ingredients, the final outcome is different

The elements of the promotions mix are:

Personal Selling.

Sales Promotion.

Public Relations.

Direct Mail.

Trade Fairs and Exhibitions.

Advertising.

Sponsorship.

The elements of the promotions mix are integrated to form a coherent campaign. As with all

forms of communication. The message from the marketer follows the 'communications process'

as illustrated above. For example, a radio advert is made for a car manufacturer. The car

manufacturer (sender) pays for a specific advert with contains a message specific to a target

audience (encoding). It is transmitted during a set of commercials from a radio station (Message /

media).

30

The message is decoded by a car radio (decoding) and the target consumer interprets the message

(receiver). He or she might visit a dealership or seek further information from a web site

(Response). The consumer might buy a car or express an interest or dislike (feedback). This

information will inform future elements of an integrated promotional campaign. Perhaps a direct

mail campaign would push the consumer to the point of purchase. Noise represents the thousand

of marketing communications that a consumer is exposed to everyday, all competing for

attention.

The Promotions Mix.

Let us look at the individual components of the promotions mix in more detail. Remember all of

the elements are 'integrated' to form a specific communications campaign.

1. Personal Selling.Personal Selling is an effective way to manage personal customer relationships. The sales person

acts on behalf of the organization. They tend to be well trained in the approaches and techniques

of personal selling. However sales people are very expensive and should only be used where

there is a genuine return on investment. For example salesmen are often used to sell cars or home

improvements where the margin is high.

2. Sales Promotion.Sales promotion tends to be thought of as being all promotions apart from advertising, personal

selling, and public relations. For example the BOGOF promotion, or Buy One Get One Free.

Others include couponing, money-off promotions, competitions, free accessories (such as free

blades with a new razor), introductory offers (such as buy digital TV and get free installation),

and so on. Each sales promotion should be carefully cost and compared with the next best

alternative.

3. Public Relations (PR).Public Relations is defined as 'the deliberate, planned and sustained effort to establish and

maintain mutual understanding between an organization and its publics' (Institute of Public

Relations). It is relatively cheap, but certainly not cheap. Successful strategies tend to be long-

term and plan for all eventualities. All airlines exploit PR; just watch what happens when there is

31

a disaster. The pre-planned PR machine clicks in very quickly with a very effective rehearsed

plan.

4. Direct Mail.Direct mail is very highly focused upon targeting consumers based upon a database. As with all

marketing, the potential consumer is 'defined' based upon a series of attributes and similarities.

Creative agencies work with marketers to design a highly focused communication in the form of

a mailing. The mail is sent out to the potential consumers and responses are carefully monitored.

For example, if you are marketing medical text books, you would use a database of doctors'

surgeries as the basis of your mail shot.

5. Trade Fairs and Exhibitions.Such approaches are very good for making new contacts and renewing old ones. Companies will

seldom sell much at such events. The purpose is to increase awareness and to encourage trial.

They offer the opportunity for companies to meet with both the trade and the consumer. Expo

has recently finish in Germany with the next one planned for Japan in 2005, despite a recent

decline in interest in such events.

6. Advertising.Advertising is a 'paid for' communication. It is used to develop attitudes, create awareness, and

transmit information in order to gain a response from the target market. There are many

advertising 'media' such as newspapers (local, national, free, trade), magazines and journals,

television (local, national, terrestrial, satellite) cinema, outdoor advertising (such as posters, bus

sides).

7. Sponsorship.Sponsorship is where an organization pays to be associated with a particular event, cause or

image. Companies will sponsor sports events such as the Olympics or Formula One. The

attributes of the event are then associated with the sponsoring organization.

Physical EvidencePhysical Evidence is the material part of a service. Strictly speaking there are no physical

attributes to a service, so a consumer tends to rely on material cues. There are many examples of

physical evidence, including some of the following:

32

There are many examples of physical evidence, including some of the following:

Packaging. Internet/web pages. Paperwork (such as invoices, tickets and dispatch notes). Brochures. Furnishings. Signage (such as those on aircraft and vehicles). Uniforms. Business cards. The building itself (such as prestigious offices or scenic headquarters). Mailboxes and many others . . . . . .

A sporting event is packed full of physical evidence. Your tickets have your team's logos printed

on them, and players are wearing uniforms. The stadium itself could be impressive and have an

electrifying atmosphere. You travelled there and parked quickly nearby, and your seats are

comfortable and close to restrooms and store. All you need now is for your team to win!

Some organizations depend heavily upon physical evidence as a means of marketing

communications, for example tourism attractions and resorts (e.g. Disney World), parcel and

mail services (e.g. UPS trucks), and large banks and insurance companies (e.g. Lloyds of

London).

People

People are the most important element of any service or experience. Services tend to be

produced and consumed at the same moment, and aspects of the customer experience are altered

to meet the 'individual needs' of the person consuming it.

TrainingAll customer facing personnel need to be trained and developed to maintain a high quality of

personal service. Training should begin as soon as the individual starts working for an

organization during an induction. The induction will involve the person in the organization's

culture for the first time, as well as briefing him or her on day-to-day policies and procedures. At

this very early stage the training needs of the individual are identified. A training and

33

development plan is constructed for the individual which sets out personal goals that can be

linked into future appraisals. In practice most training is either 'on-the-job' or 'off-the-job.' On-

the-job training involves training whilst the job is being performed e.g. training of bar staff. Off-

the-job training sees learning taking place at a college, training centre or conference facility.

Attention needs to be paid to Continuing Professional Development (CPD) where employees see

their professional learning as a lifelong process of training and development.

Personal Selling

There are different kinds of salesperson. There is the product delivery salesperson. His or her

main task is to deliver the product, and selling is of less importance e.g. fast food, or mail. The

second type is the order taker, and these may be either 'internal' or 'external.' The internal sales

person would take an order by telephone, e-mail or over a counter. The external sales person

would be working in the field. In both cases little selling is done. The next sort of sales person is

the missionary.

Here, as with those missionaries that promote faith, the salesperson builds goodwill with

customers with the longer-term aim of generating orders. Again, actually closing the sale is not

of great importance at this early stage. The forth type is the technical sales person, e.g. a

technical sales engineer. Their in-depth knowledge supports them as they advise customers on

the best purchase for their needs. Finally, there are creative sellers. Creative sellers work to

persuade buyers to give them an order. This is tough selling, and tends to o ffer the biggest

incentives. The skill is identifying the needs of a customer and persuading them that they need to

satisfy their previously unidentified need by giving an order.

Customer ServiceMany products, services and experiences are supported by customer services teams. Customer

services provided expertise (e.g. on the selection of financial services), technical support(e.g.

offering advice on IT and software) and coordinate the customer interface (e.g. controlling

service engineers, or communicating with a salesman). The disposition and attitude of such

people is vitally important to a company. The way in which a complaint is handled can mean the

difference between retaining or losing a customer, or improving or ruining a company's

reputation. Today, customer service can be face-to-face, over the telephone or using the Internet.

People tend to buy from people that they like, and so effective customer service is vital.

34

Customer services can add value by offering customers technical support and expertise and

advice.

Another view is that marketing has a number of processes that integrate together to create an

overall marketing process, for example - telemarketing and Internet marketing can be integrated.

A further view is that marketing processes are used to control the marketing mix, i.e. processes

that measure the achievement marketing objectives. All views are understandable, but not

particularly customer focused.

For the purposes of the marketing mix, process is an element of service that sees the customer

experiencing an organization’s offering. It's best viewed as something that your customer

participates in at different points in time. Here are some examples to help your build a picture of

marketing process, from the customer's point of view.

Going on a cruise - from the moment that you arrive at the dockside, you are greeted; your

baggage is taken to your room. You have two weeks of services from restaurants and evening

entertainment, to casinos and shopping. Finally, you arrive at your destination, and your baggage

is delivered to you. This is a highly focused marketing process.

Booking a flight on the Internet - the process begins with you visiting an airline's website. You

enter details of your flights and book them. Your ticket/booking reference arrive by e-mail or

post. You catch your flight on time, and arrive refreshed at your destination. This is all part of

the marketing process.

At each stage of the process, markets: Deliver value through all elements of the marketing mix. Process, physical evidence and

people enhance services.

Feedback can be taken and the mix can be altered.

Customers are retained, and other serves or products are extended and marked to them.

The process itself can be tailored to the needs of different individuals, experiencing a similar

service at the same time.

Processes essentially have inputs, throughputs and outputs (or outcomes). Marketing adds value

to each of the stages. Take a look at the lesson on value chain analysis to consider a series of

processes at work.

35

ProcessProcess is another element of the extended marketing mix, or 7P's.There are a number of

perceptions of the concept of process within the business and marketing literature. Some see

processes as a means to achieve an outcome, for example - to achieve a 30% market share a

company implements a marketing planning process.

Another view is that marketing has a number of processes that integrate together to create an

overall marketing process, for example - telemarketing and Internet marketing can be integrated.

A further view is that marketing processes are used to control the marketing mix, i.e. processes

that measure the achievement marketing objectives. All views are understandable, but not

particularly customer focused.

For the purposes of the marketing mix, process is an element of service that sees the customer

experiencing an organisation's offering. It's best viewed as something that your customer

participates in at different points in time. Here are some examples to help your build a picture of

marketing process, from the customer's point of view.

Going on a cruise - from the moment that you arrive at the dockside, you are greeted; your

baggage is taken to your room. You have two weeks of services from restaurants and evening

entertainment, to casinos and shopping. Finally, you arrive at your destination, and your baggage

is delivered to you. This is a highly focused marketing process.

Booking a flight on the Internet - the process begins with you visiting an airline's website. You

enter details of your flights and book them. Your ticket/booking reference arrive by e-mail or

post. You catch your flight on time, and arrive refreshed at your destination. This is all part of

the marketing process.

At each stage of the process, markets: Deliver value through all elements of the marketing mix. Process, physical evidence and people

enhance services.

Feedback can be taken and the mix can be altered.

Customers are retained, and other serves or products are extended and marked to them.

36

The process itself can be tailored to the needs of different individuals, experiencing a similar

service at the same time.

Processes essentially have inputs, throughputs and outputs (or outcomes). Marketing adds value

to each of the stages. Take a look at the lesson on value chain analysis to consider a series of

processes at work.



CHAPTER-5

37

Data Analysis and Results



5. Data Analysis and Results

5.1 Hypotheses

The previous researchers have concluded that there is total 3% population that uses packaged

atta. The previous research does not do the specific analysis for families with low, middle and

high incomes. The above mentioned hypothesis is tested for families with different income

groups.

38

(1) Usage of packaged atta in various income families

H0: P = 0.03

Null Hypothesis is that only 3 percent families use the packaged Atta

H1: P > 0.03

Alternative Hypothesis is that more than 3 percent families use packaged Atta

Analysis for low income families - Low income families, in this study, means the families

having a sum total of family income up to Rs 10,000 per month. The responses of members from

low families are given in the table below:

Table 5.1: Use of Packaged Atta in Low Income Families

Response No. of Respondents

Yes 2

No 32

Total 34

Interpretation and Result -In order to find out the use of packaged atta in Low Income

Families, I asked 32 respondents if packaged atta is used in his/her family. Only 2 respondents (6

per cent) said yes. Remaining 32 respondents (94 per cent) said, packaged atta is not used in their

families. The details of the same are given in table 5.1 and are presented graphically in the graph

below:

6%

94%

Use of Packaged Atta in Low Income Families

Yes No

39

Sample

Size

z critical

value

z calculated

value

Significance

level

Result

34 1.64 1.03 0.05 H0 accepted

There is statistical evidence to accept that 3% families with low income use packaged atta.

Therefore we have to accept the null hypothesis which means there are 3% low income families

that use packaged atta. We cannot accept the alternative hypothesis that more than 3% low

income families use packaged atta.

Analysis for middle income families - Middle income families, in this study, means the families

having a sum total of family income between Rs 15,000 and Rs 40,000 per month. The responses

of members from middle income families are given in the table below:

Table 5.2: Use of Packaged Atta in Middle Income Families


Yes 6

No 38

Total 44

Interpretation and Result -In order to find out the use of packaged atta in middle Income

Families, I asked 44 respondents if packaged atta is used in his/her family. Only 6 respondents

(14 per cent) said yes. Remaining 38 respondents (86 per cent) said, packaged atta is not used in

their families. The details of the same are given in table 5.2 and are presented graphically in the

graph below:

40

14%

86%

Use of Packaged Atta in Middle Income Family

Yes No

There is no statistical evidence to accept that 3% families with middle income use packaged atta.

Therefore we have to accept the null hypothesis which means there are more than 3% middle

income families that use packaged atta. Analysis for high income families - High income

families, in this study, means the families having a sum total of family income more than Rs

40,000 per month. The responses of members from low families are given in the table below:

Table 5.3: Use of Packaged Atta in High Income Families


Yes 8

No 14

Total 22

41

Sample

Size

z critical

value

z calculated

value

Significance

level

Result

44 1.64 4.09 0.05 H0 not accepted

Interpretation and Result -In order to find out the use of packaged atta in High Income

Families, I asked 22 respondents if packaged atta is used in his/her family. 8 respondents (36 per

cent) said yes. Remaining 14 respondents (64 per cent) said, packaged atta is not used in their

families. The details of the same are given in table 5.3 and are presented graphically in the graph

below:

36%

64%

Use of Packaged Atta in High Income Families

Yes No

There is no statistical evidence to accept that 3% families with high income use packaged atta.

Therefore we have to accept the null hypothesis which means there are more than 3% high

income families that use packaged atta.

(2) Correlation between Working Ladies and Usage of Packaged Atta

H0: r = 0

There is no correlation between the number of families with working ladies and number of

families using the packaged atta

H1: r≠ 0

There is no correlation between the number of families with working ladies and number of

families using the packaged atta

42

Sample

Size

t critical

value

t calculated

value

Significance

level

Result

22 1.725 9.17 0.05 H0 not accepted

It sees that there is some relationship between the usage of packaged atta and working ladies.

This study hypothesizes that the usage of packaged atta will be more in the families where wives

work in offices or other places than home. The basis for this assumption is that working ladies

find less or no time to buy wheat and then go to mill it in the floor mill. Thus they would like to

avoid such troubles and would buy packaged atta instead. Unlike the working ladies, the house

ladies may have enough time to buy wheat, clean it, and then get it milled in the nearby atta

chakki.

Table 5.4: Relation between number of families with low income and number of families

using packaged atta

Locality No. of families with working

ladies

No. of families where packaged atta is used

Vijaynagar 8 8

LIG 9 6

Sudama Nagar 2 1

Patnipura 4 2

Palasia 5 3

Gita Bhavan 6 6

Dewas Naka 2 3

Annapurna 2 3

Bhanvarkua 3 2

Rajbada 5 4

Interpretation and Result -In order to find out the correlation between the families using

packaged atta and families with working women I asked two question to each family from

various locations of Indore. In each of the location I selected 10 families. The total number of

locations is 10. For example, in Rajbada, there were 5 families with working ladies and 4

families used the packaged atta. These may or may not be from the same families which have

working ladies. This way, I asked these questions to 100 families. The details of the responses

are shown in table 5.4, and are presented graphically in the graph below:

43

1 2 3 4 5 6 7 8 9 100

1

2

3

4

5

6

7

8

9

f(x) = 0.723404255319149 x + 0.872340425531916R² = 0.745325596389426

Families with Working Ladies and Usage of Packaged Atta

No. of Families with Working Ladies

No.

of F

amili

es U

sing

Pack

aged

Att

a

Sample Size r critical value r calculated value Significance

level

Result

10 0.632 0.86 0.05 H0 not accepted

We conclude that there is significant correlation between the number of families with working

ladies and number of families using packaged atta.

(3) Correlation between number of low income families and usage of packaged atta

H0: r = 0

Null Hypothesis is that there is no correlation between income of the household and

usage of packaged atta

H1: P ≠ 0

Alternative Hypothesis is that there is significant correlation between income of the

household and usage of packaged atta

44

Table 5.5: Relation between number of families with low income and number of

families using packaged atta

Location

Number of Families with

low Income

Number of families using

packaged atta

Vijaynagar 4 8

LIG 5 5

Sudama Nagar 3 7

Patnipura 8 2

Palasia 4 6

Gita Bhavan 7 4

Dewas Naka 6 4

Annapurna 2 9

Bhanvarkua 7 2

Rajbada 6 5

Interpretation and Result -In order to find out the correlation between the families using

packaged atta and low income families, I asked two questions to each family from various

locations of Indore. In each of the location I selected 10 families. The total number of locations

is 10. For example, in Sudama Nagar, there were 3 low income families and 7 families used the

packaged atta. These may or may not be from the same low income families. This way, I asked

these questions to 100 families. The details of the responses are shown in table 5.5, and are

presented graphically in the graph below:

45

1 2 3 4 5 6 7 8 90

1

2

3

4

5

6

7

8

9

10

f(x) = − 1.14285714285714 x + 11.1428571428571R² = 0.884792626728111

Low Income Families and Usage of Packaged Atta

No. of families with low income

No.

of f

amili

es u

sing

pack

aged

att

a

Interpretation and Result -We conclude that there is significant negative correlation between

the number of families with working ladies and number of families using packaged atta. The

analysis also suggests that the relationship between the two variables in negative.

Table 5.6: Rating of the critical factors for demand of Packaged Atta

Factor/Rating R1 R2 R3 R4 Total

Better Quality Perception 26 34 28 12 100

Availability in vicinity 40 33 22 5 100

Convenient 54 32 10 4 100

Advertised Nutritious Values 15 29 36 20 100

46

Sample Size r critical value r calculated value Significance

level

Result

10 0. 632 -0.94 0.05 H0 not accepted

In order to find out the critical factors that lead to high demand of packaged atta, I asked them to

rate the factors on their importance wise. For example, 54 respondents said that convenience is

the most important factor responsible for them to buy the packaged atta. It can be said that

convenience and availability in the vicinity are the drivers of high demand of packaged atta. The

details of the responses are shown in table 5.6, and are presented graphically in the graph below:

R1 R2 R3 R40

10

20

30

40

50

60

Rating of the Critical Factors for Demand of Packaged Atta

Better Quality PerceptionAvailibility in vicinityConvenientAdvertised Nutritious Values

Table 5.7: Rating of the Factors of Responsible for the Low Sales of Packaged Atta

Factor/Rating R1 R2 R3 R4 Total

Maida Taste 41 26 20 13 100

Unreliable 57 33 7 3 100

High Price 23 39 22 16 100

Time Availability 34 25 29 12 100

Interpretation and Result -In order to find out the critical factors that cause low demand of

packaged atta, I asked them to rate the factors on their importance wise. For example, 23

respondents said that convenience is the most important factor responsible for them not to buy

47

the packaged atta. It can be said that maida taste and unreliability y are the factors responsible for

low sales of packaged atta. The details of the responses are shown in table 5.7, and are presented

graphically in the graph below:

R1 R2 R3 R40

10

20

30

40

50

60

Rating of the Factors for Low Sales of Atta

Maida TasteUnreliableHigh PriceTime Availibility

Table 5.8: Decision Maker about the brand of packaged atta in family

Housewife 50

Parents 20

Husband 18

Children 2

Total 90

Table 5.8 details the decision makers about the usage of packaged atta in the family. Children

decide the brand of packaged atta only in 2 per cent families while in 56 per cent of the families

housewives decide the brand of packaged atta. Parents decide in 22 per cent of the families

whereas husbands decide in 20 percent of the families. The following graph gives the details of

the decision makers:

48

Husband20%

Housewife56%

Parents22%

Children2%

Decision Makers about the Usage of Packaged Atta

Who cooks food in the family

One of the important factors in the usage of packaged atta is recommendation made by the

person cooking food in home. Therefore it was important to find out who cooks food in homes.

In rural India, almost in every home the food is cooked by family members. Unlike rural India, in

urban areas both husband and wife work which results into the employment of maids in the

cooking of foods. Since there was such study available about the percentage of homes where

food is cooked by maids, I have hypothesized that maids cook food in 10% of the homes. Since

there is diversity in the cooking habits across income groups, hypothesis has been tested for low

income families, middle income families and high income families.

49

Low Income Families

Housewife33%

Working Woman33%

Senior Citizen

33%

Respondents from Low Income Families

H0: Maids cook food in 10% of the families with low income

H1: Maids cook food in less than 10% of the families with low income

Table 5.9: Who cooks food in low income family?

Family Member 28

Maid 2

Total 30

In 97 per cent of the low income families, the food is cooked by family members while in only 3

per cent of the families maid cooks food. Table 5.9 details the same and the responses are shown

in the following graph:

50

Sample Size t table

value

t calculated

value

Significance level Result

30 1.699 -0.602 0.05 H0 not accepted

Interpretation and Result -It can be concluded that in less than 10 per cent families (low

income) the food is cooked by maids.

This conclusion is important because the decision about the packaged atta is likely to be made by

the person cooking food. Since in most of the families with low income food is cooked by family

members, housewife in particular, the decision about the usage of the packaged atta is made by

the housewife.

51

Family Members

93%

Maid7%

Who Cooks Food in Low Income Families

Middle Income Families

Housewife75%

Working Woman13%

Parents13%

Respondents from Middle Class Families

Table 5.10: Who cooks food in middle income families?

Family Member 30

Maid 10

Total 40

Interpretation and Result -In 75 per cent of the middle income families, the food is cooked by

family members while in only 25 per cent of the families maid cooks food. Table 5.10 details the

same and the responses are shown in the following graph:

Family Members

75%

Maid25%

Who cooks food in Middle Income Families

H0: Maids cook food in 10% of the families in urban India

52

H1: Maids cook food in more than 10% of the families in urban India

Sample

Size

t table value t calculated

value

Significance

level

Result

40 1.684 65.22 0.05 H0 not accepted

Interpretation and Result -It can be concluded that in more than 10 per cent families (middle


High Income Families

Table 5.11: Who cooks food in high income family?

Family Member 10

Maid 10

Total 20

Interpretation and Result -In 50 per cent of the middle income families, the food is cooked by

family members while in 50 per cent of the families maid cooks food. Table 5.11 details the

same and the responses are shown in the following graph:

Family Members

50%Maid50%

Who cooks food in High Income Fam-ilies

H0: Maids cook food in 25% of the families in urban India

H1: Maids cook food in more than 25% of the families in urban India

Sample

Size

t table value t calculated

value

Significance

level

Result

53

20 1.729 2.58 0.05 H0 not accepted

Interpretation and Result -It can be concluded that in more than 25 per cent families (high




CHAPTER-6

54

Limitations of the Study



6. Limitations of the Study

The research project aims at collecting data from urban area. Thus, exclusion of rural area

where approximately 65 per cent of people live would be major limitation.

The sample size of 100 may be limited to conclude the findings for 30 crore people living

in urban area.

It covers only marketing aspect of low sales.

The number of question in questionnaire may not be adequate to know the reason for low

sales.

55



CHAPTER-7

56

Suggestions and Conclusion

A STUDY OF CRITICAL FACTORS RESPONSIBLE FOR THE LOW SALES OF

PACKAGED ATTA

7. Suggestions and Conclusion

Per capita income in India is increasing. Rural population is also becoming quality conscious.

People are using luxurious products. The cold beverages have made their place in consumers.

Advertisement is driving sales of many products. Business houses are eyeing at the retail

sector as the business of future. People in urban India are getting used to buy vegetables from

organized retail shops. There is cut throat competition among the firms in every walk of

business.

But, India has less than 3 per cent of its population which uses packaged atta. There are three

major players in packaged atta segment. The above two sentences form the basis of the study

57

in the light of the additional fact that atta is the main ingredient of food in almost every state

in India. The study aims at finding out the critical factors responsible for low sales of

packaged atta.

This study is based on the responses of 100 families of different locations in Indore. Data

have been collected by researcher herself. The results show that the quality of packaged atta

is less reliable than the atta grinded in the local chakki. They do not like the taste of atta

because its maida-type fine and lacks fiber. The study finds a significant positive correlation

between the number of families with working ladies and the number of families using

packaged atta. On the other hand, there is significant negative correlation between the number

of families with low income and the number of families using packaged atta. Packaged atta is

used because families report it be convenient than to buy wheat, clean it and then grind it in

vicinity chakki. The availability of packaged atta in vicinity grocery and other stores is

second major reason for people to use it.

The firms producing and selling packaged atta may be benefitted by the findings and

suggestions of the study. It is suggested for the firms to design advertisement for establishing

the reliability of process of manufacturing of packaged atta. Whole wheat atta with little low

price may increase the demand of packaged atta exponentially.



CHAPTER-858

References

Bibliography

1. Kotler Philip, (2008.) “Marketing Management – Text and Cases”, Pearson Education

a south Asian perspective, 13th Edition

2. Brian Mulian (1999) “The Psychology of Consumer Behavior” Craig Johnson, MPH

Publication New York

3. Robbins, Stephen P. (2008) Organizational Behavior, and New Delhi: Prentice Hall of India.

4. Johnson (2010), “Sales Management”, Mc Graw Hill, 7th Edition.

5. Mary Robert (1999), “Direct Marketing Management”, London: Prentice Hall, 2nd Ed.

59

6. Jerry C. Olson, Thomas J. Reynolds (2001), Understanding Consumer Decision Making: The

Means-End Approach to Marketing and Advertising Strategy, Oxford university Press, Oxford

7. Ali, Jabir, Sanjeev Kapoor and Janakiraman Moorthy, “Buying Behaviour of Consumers for Food

Products in an Emerging Economy”, British Food Journal, Vol. 112 No. 2 (2010): 109-124

Webliography

1. http://timesofindia.indiatimes.com/articleshow/1241069178.cms 2. http://timesofindia.indiatimes.com/city/delhi/-No-mechanism-to-keep-retail-prices-in-check/

articleshow/5717368.cms

3. http://www.indianfoodindustry.net/

4. http://www.indianexpress.com/news/who-are-the-middle-class-in-india/438429/

60

http://www.indianexpress.com/news/who-are-the-middle-class-in-india/438429/

http://www.indianfoodindustry.net/

5. http://www.prlog.org/10955354-new-market-study-published-ethical-packaged-food-does-it-

really-have-future.html

6. http://chestofbooks.com/food/household/Foods-And-Household-Management/Ready-Cooked-

Foods.html

7. http://ecophilo.blogspot.com/2005/04/ready-to-eat-or-ready-to-cook.html



61

http://ecophilo.blogspot.com/2005/04/ready-to-eat-or-ready-to-cook.html

http://chestofbooks.com/food/household/Foods-And-Household-Management/Ready-Cooked-Foods.html

http://chestofbooks.com/food/household/Foods-And-Household-Management/Ready-Cooked-Foods.html

http://www.prlog.org/10955354-new-market-study-published-ethical-packaged-food-does-it-really-have-future.html

http://www.prlog.org/10955354-new-market-study-published-ethical-packaged-food-does-it-really-have-future.html

Appendices

Appendices

A .Questionnaire

Personal Information

1. Who cooks food in your home:

a. Cook

b. Any other family member

2. Do you use packaged atta in your Home?

a. Yes

b. No

62

3. Total Number of Members in the Family

a. Two

b. 2 – 4

c. 4 – 6

d. More than 6

4. Profession

a. House maker

b. Working

5. Total Family Income per month

a. Up to Rs 10000

b. Rs 10000 – Rs 40000

c. More than Rs 40000

Information relating to consumption pattern

1. How often do you use packaged atta?

1. Daily

2. Occasionally

3. Never

4. When out of stock

2. Why do you not use packaged atta?

a. Unreliability

b. Price

c. Time Availability

d. Taste ( Maida )

3. Are you satisfied with the quality of packaged atta?

a. Excellent

b. Good

63

c. Average

d. poor

4. Are you satisfied with the price?

a. Yes

b. No

5. Do you feel Maida test in packaged atta?

a. Yes

b. No

6. How many brands of packaged atta do you know? Please name them

a. …………………..

b. ………………….

c. …………………..

d. …………………..

e. …………………..

7. Have you seen the advertisement of packaged atta in television, if yes please name

the brand

………………………………………………………………………..

8. Who makes the decision about the brand of the packaged atta in your family?

a. Self

b. Husband

c. Mother In Law/ Parents/ Father in Law

d. Children

9. Which type of improvement would you like to see in the atta you are using currently

64

…………………………………………………………………………..

10. How satisfied are you with the packaged atta?

a. Very Satisfied

b. Just Satisfied

c. Dissatisfied

d. Very Dissatisfied

11. Rank the reason for using the packaged atta according to your importance ( Rank

1 means most Important

Factor Rank

Quality

Better Quality Perception

Availability in vicinity

Convenient

Advertised Nutritious Values

Respondents list

Respondent

ProfeSCion

Income ClaSC

Use of Pack Atta

Location

High Sales Rank 1

Low Sales Rank 1

Who cooks

1 HW L N VN BQ MT FM

2 HW L N LG

AV UR FM

3 HW L N SN CT HP FM

4 HW L N PT

AN TA FM

5 HW L N PL UR FM6 HW L N GB UR FM7 HW L N DN UR FM8 HW L N AN UR FM

65

9 HW L N BK FM10 HW L Y RB TA FM11 HW M N VN UR

12 HW M N LG CT13 HW M N SN

14 HW M N PT CT HP

15 HW M N PL UR

16 HW M N GB UR

17 HW M N DN CT MT

18 HW M N AN CT UR

19 HW M N BK CT UR

20 HW M N RB CT UR

21 HW M N VN CT UR

22 HW M N LG CT UR

23 HW M N SN UR

24 HW M N PT UR

25 HW M N PL CT UR

26 HW M N GB CT UR

27 HW M N DN CT TA

28 HW M N AN CT TA

29 HW M N BK CT TA

30 HW M N RB CT MT

31 HW M N VN UR

32 HW M N LG CT HP

33 HW M N SN CT TA

34 HW M N PT MT

35 HW M N PL UR

36 HW M N GB UR

37 HW M N DN CT UR

38 HW M Y AN UR

39 HW M Y BK MT

40 HW M Y RB CT UR

41 HW H N VN HP

42 HW H N LG TA

43 HW H N SN UR

44 HW H N PT UR

45 HW H N PL CT UR

46 HW H N GB MT

47 HW H N DN UR

48 HW H Y AN HP

49 HW H Y BK CT TA

50 HW H Y RB UR

51 WW L N VN HP

52 WW L N LG CT HP MD

53 WW L N SN HP FM54 WW L N PT UR FM55 WW L N PL CT UR FM56 WW L N GB CT HP FM57 WW L N DN CT UR FM58 WW L N AN CT UR FM

66

59 WW L N BK CT UR MD

60 WW L N RB UR FM61 WW M N VN UR FM62 WW M N LG UR FM63 WW M N SN UR FM64 WW M Y PT CT UR FM65 WW M Y PL CT MT FM66 WW H N GB CT u FM67 WW H N DN CT UR FM68 WW H N AN CT UR FM69 WW H Y BK CT UR FM70 WW H Y RB CT HP

71 SC L Y VN HP FM72 SC L N LG CT UR FM73 SC L N SN CT UR FM74 SC L N PT CT UR FM75 SC L N PL CT UR FM76 SC L N GB UR FM77 SC L N DN CT UR FM78 SC L N AN CT UR FM79 SC L N BK CT MT FM80 SC L N RB CT MT FM81 SC M N VN CT MT

82 SC M N LG CT MT

83 SC M N SN CT MT

84 SC M N PT CT MT

85 SC M Y PL CT MT

86 SC H Y GB CT HP

87 SC H Y DN HP MD88 SC H Y AN HP FM89 SC H N BK CT HP FM90 SC H N RB UR FM91 S L N LG UR FM92 S L N SN CT UR FM93 S L N PT CT UR FM94 S L N PL CT UR FM95 S M N GB CT UR

96 S M N DN CT MT

97 S M N AN UR

98 S M N BK MT

99 S H N RB UR

100 S H N VN UR

HW 50 34 16 10 54 16 43WW 20 44 84 10 57SC 20 22 10S 10 100 10Total 100 10

101010

67

1010

Percentage Analysis

Table 5.1: Use of Packaged Atta in Low Income Families

Response No. of Respondents %

Yes 2 6

No 32 94

Total 34 100

Table 5.2: Use of Packaged Atta in Middle Income Families


Yes 6 14

68

No 38 86

Total 44 100

Table 5.3: Use of Packaged Atta in High Income Families


Yes 8 36

No 14 64

Total 22 100

Table5.8: Dicision making about brand %

Housewife 50 56

Parents 20 22

Husband 18 20

Children 2 2

Total 90 100

Table 5.9: Who cooks food in low income family?Family Member 28 93

Maid 2 7

Total 30 100

Table 5.10: Who cooks food in middle income families?Family Member 30 75

Maid 10 25

Total 40 100

Table 5.11: Who cooks food in high income family?

Family Member 10 50

Maid 10 50

Total 20 100

69

Appendices. D. Synopsis

A STUDY OF CRITICAL FACTORS RESPONSIBLE FOR

LOW SALES OF PACKAGED ATTA

Major Research Project

Submitted by

Sangeeta Pandey

70

Guided by

Ms Richa Darshan

in partial fulfillment for the award of the degree

of

Master of Business Administration

B M COLLEGE OF MANAGEMENT AND RESEARCH, INDORE

DECLARATION

I, Sangeeta Pandey, here by declare that the major research project entitled “ A Study of

Critical Factor Responsible for Low Sales of Packaged Atta” has been undertaken by me

71

under the guidance of Ms Richa Darshan, Professor of B M College of Management &

Research in partial fulfillment of the requirement for the completion of Degree of Master

of Business Administration.

Sangeeta

Pandey

TABLE OF CONTENTS

PAGE NO:

1. INTRODUCTION …………………………………………………………………………...1

1.1 Statement of the Problem………………………………………………………………1

1.2 Objectives………………………………………………………………………………..2

1.3 Scope of the study………………………………………………………………………2

72

1.4 Limitations of the study…………………………………………………………………2

2. REVIEW OF LITERATURE…………………………………………………….2

3. INTRODUCTION TO FOOD INDUSTRY……………………………………...2

4. RESEARCH METHODOLOGY………………………………………………...3

4.1 The study…………………………………………………………………………………3

4.2 The sample design………………………………………………………………………..4

4.3 Tools for data collection…………………………………………………………………4

4.4 Tools for data analysis…………………………………………………………………...4

4.5 Hypothesis………………………………………………………………………………...4

REFERENCE…………………………………………………………………….......5

ANNEXURE 1 – QUESTIONNAIRE………………………………………………6

A Study of Critical Factors Responsible for Low Sales

of Packaged Atta

1. Introduction

Food is powerful symbol of cultural identity; wheat considered to be a staple part of diet for most

of northern and western part of India, is also finding its way into the culinary habits of the south

and the east where rice has traditionally ruled the platter.

73

The bulk of wheat is converted into whole wheat flour or Atta, used to make flat bread or roti.

While Atta and roties are central to Indian food, packaged atta is a novel concept. The market is

characterized by traditional chakki atta, where the housewife buys grain and has it freshly ground

in a local flour mill or chakki. The current size of branded packaged atta is approximately one

million tones or 3% of total market of approximately 45 million tones.

In is a country of unity in diversity. But there is not much variation in the food habits of people.

Particularly when it comes to main component of Indian diet, Roti is indispensible. Except for a

few states in the south, rotis are the main course of Indian food. Roti is made of wheat flour.

Thus considering the amount spent on food, approximately 20 per cent of food expenditure is on

flour. In this study atta is going to be used in place of wheat flour.

India has seen rapid economic growth in the past two decades after the new economic policy.

The economic growth has certainly bettered the life style and standard of living of the middle

class, if not rural Indians. The changing life style and the aggressive marketing of food items

have completely changed the buying pattern of consumers. Consumers are buying packaged oil,

masale, leaf tea, pickle, beverages, rice, fruits and what not. The penetration is so intense that

people are buying one rupee water pouches.

In the light of such changing scenario, is seems pretty strange as why the packaged atta industry

is not keeping the pace with the growth of other packaged items in India. The branded atta

market (estimated between 2.3-3 lakh tonnes and valued at Rs 400-600 crore) is increasing in the

last few years. According to some estimates merely five per cent is the consumption of packaged

atta out of total consumption.

1.1Statement of the problem

Given the growth of other packaged food items, the packaged atta industry is estimated to grow

at the rate of merely 3 per cent. The slow growth of the above mentioned industry may be due to

several reasons. It is also surprising that the presence of ITC, Hindustan Lever Ltd and even the

global brand Pillsbury is not stimulating the growth of the industry. This is evident from the

advertising space in the television. There is hardly any advertisement of packaged atta during the

74

prime time of television targeting the Indian housewives through Balika Vadhu, Jhansi Ki Rani,

Ye Rishta Kya Kehlata Hai, etc.

The problem is related to the low sales of packaged atta, even it is inevitable part of our life.

Now the time when people are using every thing in packaged form and believing that it would be

better than open food, even than they are not giving as much as response as they should give to

it.

The major market is of families where both husband and wife are working, office goers or those

families which don’t have a flour mill nearby.

Most families still prefer going the traditional way and doubt the quality of packaged atta. The

still practice purchasing wheat from the market, cleaning it by hand, storing them and then taking

small quantities of wheat to neighborhood mill or chakki to get it ground between two stones to

convert it into flour.

Selling packaged flour is almost revolutionary in India, where most Indian housewives still buy

row wheat in bulk, clean it by hand, store it in metal hampers and carry some to the

neighborhood mill or chakki where it ground between to stones.

1.2 Objectives

The main objective of the study was:

“To study the critical factor responsible for low sales of packaged atta”

The sub-objectives of the study were:

The per cent of households using the packaged atta in urban area

Factors that drive people to use the packaged atta

Factors that check households from using the packaged atta

Key decision maker in the household for buying/ not buying the packaged atta

Advertisement effectiveness ofpackaged atta

75

Average income of buyers of packaged atta

1.2 Scope of the Study

After finding the critical factors responsible for low demand for packaged atta, the suggestion

can used in the core marketing concepts viz. Price, Promotion, Place, and Product.

The scope of the study, in terms of geography, is limited to urban area.

This study is to know why, what, where, who is responsible for low sales of packaged atta.

1.3 Limitations of the Study

The research project aims at collecting data from urban area. Thus, exclusion of rural area

where approximately 65 per cent of people live would be major limitation.

The sample size of 100 may be limited to conclude the findings for 30 crore people living

in urban area.

It covers only marketing aspect of low sales.

The number of question in questionnaire may not be adequate to know the reason for low

sales.

2. Reviewof Literature

There are many studies conducted in the buying behavior of people but as such no study has

been conducted to find out the factors responsible for low sales of atta, in particular. The

preferences of the consumers clearly indicate their priority for cleanliness/ freshness of food

products followed by price, quality, variety, packaging, and non-seasonal availability in the food

market and grocery market. (Ali et al, 2010)

3. Introduction to Food Industry

76

India is the world's second largest producer of food next to China, and has the potential of being

the biggest with the food and agricultural sector. The total food production in India is likely to

double in the next ten years and there is an opportunity for large investments in food and food

processing technologies, skills and equipment, especially in areas of Canning, Dairy and Food

Processing, Specialty Processing, Packaging, Frozen Food/Refrigeration and Thermo Processing.

Fruits & Vegetables, Fisheries, Milk & Milk Products, Meat & Poultry, Packaged/Convenience

Foods, Alcoholic Beverages & Soft Drinks and Grains are important sub-sectors of the food

processing industry. Health food and health food supplements is another rapidly rising segment

of this industry which is gaining vast popularity amongst the health conscious.

India is one of the worlds major food producers but accounts for less than 1.5 per cent of

international food trade. This indicates vast scope for both investors and exporters. Food exports

in 1998 stood at US $5.8 billion whereas the world total was US $438 billion. The Indian food

industries sales turnover is Rs 140,000 crore (1 crore = 10 million) annually as at the start of year

2000. The industry has the highest number of plants approved by the US Food and Drug

Administration (FDA) outside the USA.

India's food processing sector covers fruit and vegetables; meat and poultry; milk and milk

products, alcoholic beverages, fisheries, plantation, grain processing and other consumer product

groups like confectionery, chocolates and cocoa products, Soya-based products, mineral water,

high protein foods etc. We cover an exhaustive database of an array of suppliers, manufacturers,

exporters and importers widely dealing in sectors like the -Food Industry, Dairy processing,

Indian beverage industry etc. We also cover sectors like dairy plants, canning, bottling plants,

packaging industries, process machinery etc.

The most promising sub-sectors includes -Soft-drink bottling, Confectionery manufacture,

Fishing, aquaculture, Grain-milling and grain-based products, Meat and poultry processing,

Alcoholic beverages, Milk processing, Tomato paste, Fast-food, Ready-to-eat breakfast cereals,

Food additives, flavors etc.

77

4. Methodology

4.1 The Study

The study would be conducted in Indore. The study will cover different income group of people.

It tells factors why people are using it or not using it.

4.2 The Sample Design

The target respondents are the housewives, retailers and the sales men of shopping maals. The

questionnaire is developed after a pilot survey of some housewives and senior citizens.

Following is the data collection table from the targeted respondents:

Low

Income

Middle

Income

High Income Total

House wives 10 30 10 50

Working Women 10 5 5 20

Senior Citizens 10 5 5 20

Sellers* 4 4 2 10

Total 34 44 22 100

*Low income seller = Local Chakki Owners

Middle income seller = Mom and Pop Store Owners

High income seller = Sales men from shopping malls

4.3 Tools for Data Collection

The data would be collected through schedules where the surveyor would be asking the questions

in the schedule and marking and noting the responses.

78

4.4 Tools for Data Analysis

The data would be presented using the graphs, pie charts and bar diagrams. Analysis of data

would be done using arithmetic mean, correlation analysis and appropriate.

4.5 Hypothesis

The followings are the assumption of the study:

(2) H0: P = 0.5

Null Hypothesis is that only 5 percent people use the packaged Atta

H1: P ≠ 0.5

Alternative Hypothesis is that 5 percent people do not use packaged Atta

(3) H0: r = 0

Null Hypothesis is that there is no correlation between income of the household and

usage of packaged atta

H1: P ≠ 0

Alternative Hypothesis is that there is significant correlation between income of the

household and usage of packaged atta

5. References

4. http://timesofindia.indiatimes.com/articleshow/1241069178.cms

5. http://timesofindia.indiatimes.com/city/delhi/-No-mechanism-to-keep-retail-prices-in-

check/articleshow/5717368.cms

6. Ali, Jabir, Sanjeev Kapoor and Janakiraman Moorthy, “Buying Behaviour of Consumers forFood

Products in an Emerging Economy”, British Food Journal, Vol. 112 No. 2 (2010): 109-124

7. http://www.indianfoodindustry.net/

8. http://www.indianexpress.com/news/who-are-the-middle-class-in-india/438429/

79

http://www.indianexpress.com/news/who-are-the-middle-class-in-india/438429/

http://www.indianfoodindustry.net/

Annexure 1 – Questionnaire

Personal Information

6. Who cooks food in your home:

a. Self

b. Cook

c. Any other family member

7. Do you use packaged atta in your Home?

a. Yes

b. No

8. Total Number of Members in the Family

a. Two

b. 2 – 4

c. 4 – 6

d. More than 6

9. Profession

a. House maker

b. Working

c. Part Time

10. Total Family Income per month

a. Up to Rs 10000

b. Rs 10000 – Rs 20000

c. Rs 20000 – Rs 40000

d. More than Rs 40000

Information relating to consumption pattern

1. How often do you use packaged atta?

1. Daily

2. Occasionally

3. Never

80

4. When out of stock

2. Why do you not use/use packaged atta?

e. Quality

f. Price

g. Packet Size

h. Availability

i. Convenience

j. Test ( Maida )

3. Are you satisfied with the quality of packaged atta?

e. Excellent

f. Good

g. Average

h. poor

4. Are you satisfied with the price?

a. Yes

b. No

5. Do you feel Maida test in packaged atta?

a. Yes

b. No

6. How many brands of packaged atta do you know? Please name them

81

f. …………………..

g. ………………….

h. …………………..

i. …………………..

j. …………………..

7. Have you seen the advertisement of packaged atta in television, if yes please name

the brand

………………………………………………………………………..

8. Who makes the decision about the brand of the packaged atta in your family?

e. Self

f. Husband

g. Mother In Law/ Parents/ Father in Law

h. Children

9. Which type of improvement would you like to see in the atta you are using currently

…………………………………………………………………………..

10. How satisfied are you with the packaged atta?

e. Very Satisfied

f. Just Satisfied

g. Dissatisfied

h. Very Dissatisfied

12. Rank the reason for using the packaged atta according to your importance ( Rank

1 means most Important

Factor Rank

82

Quality

Price

Convenience

Packet Size

Maida Test

83

Documents

MRP V8