Complete Preference Towards Coffee

8/7/2019 Complete Preference Towards Coffee

1/82

FINAL REPORT

ONPREFERENCE TOWARDS

COFFEE

Submitted to

PUNJAB TECHNICAL University, JALANDHAR

in the partial fulfillment of requirement for the

degree of

(MASTERS IN BUSINESS ADMINISTRATION)

PROJECT GUIDE:- Submitted

By:-

Mr. DIVAKAR JOSHI SUBHASH

CHAND

(H.O.D) MBA IV (Sem)

81403317097

1


2/82


3/82

DECLARATION

This is to state that the Project titled PREFERENCE

TOWARDS COFFEE is based on the original work carried

out by me and is being submitted towards partial fulfillment of

the requirement for the MBA program of the Punjab Technical

University, Jalandhar. This has not been submitted for the

award of any other degree or diploma.

Name and Signature of the Student

3


4/82


5/82

help received during course of investigation has been fully

acknowledged.

Mr.

Divakar Joshi

HOD

CERTIFICATE II

This is to certify that the project report submitted by

Subhash Chand of Punjab Technical University for the

award of degree of MBA (Marketing) is a bonafide and

authentic piece of work carried under my guidance and

supervision. This quality of work fulfills all the requirement

needed for the said training.

5


6/82

Project Guide

Mr. Ramandeep

Gautam

CERTIFICATE III

This is certified that project report titled PREFERENCE

TOWARDS COFFEE submitted by Subhash Chand

Roll No.81403317097 to Punjab Technical University

Jalandhar in partial fulfillment o MBA 4th Sem has been

6


7/82

approved by student advisory after an oral examination

of same in collaboration with external examiner.

External

Examiner

CONTENTS

CHAPTER I INTRODUCTION

1-5

1.1 Introduction of Coffee in India

1.2 Coffee Cultivation

1.3 Growth & Development of Industry

1.4 Present Status of the Industry

7


8/82

CHAPTER II BACKGROUND OF THE STUDY

6-13

2.1 Marketing

2.2 Importance of Marketing2.3 Consumer Behavior

2.4 Determinant of Consumer Behaviour

2.5 Marketing and Consumer Behaviour

CHAPTER III PROFILE OF THE ORGANIZATION

14-25

3.1 Origin of the Organization

3.2 Growth & Development of the

Organization

3.3 Present Status of the Organization

3.4 Functional Department of the

Organization

CHAPTER IV RESEARCH METHODOLOGY

26-30

4.1 Title of the Study

4.2 Statement of the Problem

4.3 Objectives of the Study4.4 Scope of the study

4.5 Limitation of the study

CHAPTER V DATA ANALYSIS

AND INTERPRETATION

31-49

CHAPTER VI FINDINGS AND RECOMMENDATIONS50-54

ANNEXURE AND BIBLIOGRAPHY

55-61

8


9/82

LIST OF TABLES AND GRAPHS

Sl No. Particulars Page No.1 Number of Male and Female Respondents Surveyed 32

2 Age Group of Respondents 33

3 Occupation of the Respondents 34

4 Consumption of Coffee 35

5 Alternate Choice Among the respondents 36

6 Percentage of consumption of Branded unbranded of

Both

37

7 Percentage of Consumption of filter coffee, instant

coffee, or both

38

8 Percentage of Consumption of coffee through out the

year

39

9 The season in which the surveyed respondents consume

more coffee

40

10 The Different brands of coffee, respondents are aware

of

41-42

11 Attributes of coffee respondents perception 43-4412 The reason for why coffee is consumed most often 45-46

13 Quantity of coffee powder, the Respondents purchase

once

47

14 Respondents rated the overall quality of branded coffee 48

15 Respondents Consciousness while buying a brand 49

CHAPTER 1

9


10/82

INTRODUCTION

10


11/82

1.1 INTRODUCTION OF COFFEE IN INDIA

The province of Kaffa in Ethiopia is considered to be the

original habitat of coffee Arabia (Arabica) and Central Africa

is recognized to be the home of coffee conephora .

The history of coffee dates back to 575 AD when the

first1 cultivation was started in Yemen. This was the period

when Persian invasion put an end to the Ethiopia rules of

Negus celeb that conquered the country in 525 AD.

Certainly, the discovery of beverage resulted in

cultivation of the plant in Abyssians and Arabia but its progress

was slow until 15th and 16th centuries.

The Arabians were jealous of their new found lucrative

industry' and for a time successfully prevented its spread to

other country by not permitting any of the precious berries to

11


12/82

leave the country unless they had first keen steeped in boiling

water or parched so as to destroy their power of germination.

However, it was not practically possible to watch every

avenues of transport, with thousands of pilgrims journeying to

and from Mecca every year and this explains as how coffee was

introduced in India.

According to the Mythology, Arabica Coffee was

introduced in India sometime during 1600 AD by a Muslim

Pilgrim, Baba budan. He is reported to have brought seven

seeds from Yemen, presumably Mecca and raised seedlings on

his hermitage on the hills near chickmagalur Coffee seeding

gradually came to be planted in the backyard and gardens of

most of neighboring villages specially in Attigundi. It is from

these gardens that seedlings were introduced to Nalakand in

coorg, which subsequently gave raise to luxuriant coorg

plantation of today.

1.2 COFFEE CULTIVATION

AREA UNDER CULTIVATION

Coffee cultivation is mainly confined to the states of

Karnataka, Kerala, Tamilnadu and Andra Pradesh and on

limited scale to Arunachal Pradesh, Assam, Madya Pradesh,

Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Karnataka

accounts for about 53 percent of planted area.

12


13/82

CLIMATIC REQUIREMENT

A Well distributed annual rain fall is preferable for coffee

major areas growing coffee experience south west monsoon as

in the states of Karnataka, Kerala, all of the north East, Seekim

West Bengal and Maharastra it is also grown in areas which

receive predominant North. East monsoon as in Tamilnadu,

Andrapradesh and Orissa the south west monsoon is normallyactive from June to September with showers during July-

August. The north East is received in spells usually caused by

depression in bay of Bengal during October -December,

December to March is normally dry months. Summer showers

are important for flowering in coffee and are received during

March April certain areas in Tamilnadu were north east

monsoon is prevalent, blossom occurs more than once. Failure

of blossoms leads to crop loss.

Arabica coffee requires a cool and equable climate wile

Robusta thrives well in hot humid conditions the temperature,

rain fall, shade, soil condition and elevation are some of the

important factors and which influence growth of coffee plant.

Elevation influences species cultivated and therefore quality of

coffee Arabica grown well at elevation between 900 and 1200

meters wile Robusta comes up well at lower elevation.

1.3 GROWTH AND DEVELOPMENT OF THE

INDUSTRY IN THE WORLD

13


14/82

The original architect of the coffee industry are said to be

Ethiopians before 1200 its consumption at spread along the redsea to Adhen and Cairo by 1300, coffee was known to Persia

and by 1500 to Turqui. Shortly thereafter coffee was being sold

to Venues across the Mediterranean sea. Most pilgrims had

started to cultivate coffee in India by 1600 AD. Coffee was

under large-scale cultivation for the first time on 1729. Brazil

was producing 200.000 bags annually by 1850 - 3 Millions

bags annually by 1850.

The first significant export from brazil was made about

1809 i.e. 80 years after their first planting. It took another of

Brazil's coffee exported to reach 4 Million bags.

Soluble coffee was first produced in USA on 1867.

Coffee cultivation was first developed after 1800 in Brazil.

Parallel development occurred after 1850 in most Latin

America countries and as late as 1900 AD in Colombia.

14


15/82

Brazil coffee history had been complicated by surpluses

of coffee in 1930's and 1860's, equivalent to several year

crops. These surplus were caused due to large extend by Braziluncontrolled production and cultivation of coffee.

IN INDIA

Coffee, which was brought in India by a Muslim pilgrim,

BABA Budan on his return from Mecca, remained as a

backyard plant until sometime. Later, it was developed into

gardens. However, it was in 1820's that the commercial

plantation was opened in south India with British enterprises

and investment. The cultivation of coffee rapidly progressed

during next 40 years. In 1856 there were only 7 British planters

in Mysore. By 1869, their numbers had increased to 662 owing

8094 hectares of the total cultivated area of 58670 hectares.

Indian coffee soon established itself as outstanding in quality

and became a commodity 2nd to none in the world market.

India at present has about 350000 hactares of cultivated land of

which Arabica accounts for 40% and robusta for 60%

1.4 PRESENT STATUS OF THE INDUSTRY

The Indian coffee market is very small. Total market is

smaller than Portugal, which is a country of 9 million people.

India offers an opportunity for market development. At present,

only 8.8% of the population consumes coffee. In the urban

areas the figure is mr17.1% and 5.6% in rural areas.

At present, the only coffee plantation areas are dedicated

15


16/82

to Arabica and the remaining 60% is dedicated to robusta.

CHAPTER 2BACKGROUND

OF THE STUDY

16


17/82

2.1MARKETING

Marketing has it's origin in the fact that humans are

creatures of needs and wants. People need food, air, water,

clothing, and a strong desire for recreation, education and other

services. They have strong preferences for particular versions

and brands of basic good and services.

The concept of marking brings us full circle to the

concept of marketing.

Marketing means human activity-taking place in relation

to market.

Marketing means working with market to actualize

potential exchanges for the purpose of satisfying human needs

and wants.

American marketing association approved a definition

for marketing management in the year 1985, "marketing

management is. the process of planning and executing theconception, prizing, promotion and distribution of goods,

services and ideas to create an exchange with target groups that

satisfy the customers and organizational objectives".

This definition recognizes that marketing management is

a process involving analysis planning, implementation and

17


18/82

control that covers goods services and ideas, that it rests on the

notion of exchange, and that the goal is to produce satisfaction

for the parties involved.

18


19/82

2.2 IMPORTANCE OF MARKETING

I. IMPORTANCE OF MARKETING TO THE SOCIETY

1. Marketing helps to achieve, maintain and raise the

standard of living of the Society.

2. Marketing increases employment opportunities.

3. Marketing helps to increase the national income.

4. Marketing helps to maintain the economy marketing is a

connecting links between the customer and the

producers.

5. Marketing helps in creating of utilities.

II. IMPORTANCE OF MARKETING TO THE

BUSINESS FIRMS

1. Marketing generates revenue to the firm.

2. Marketing acts as a basis for marketing decisions.

3. Marketing helps the top management to manage

innovation and changes.

2.3 CONSUMER BEHAVIOUR

Consumer behavior is defined as "all psychological,

social and physical behaviors of potential costumers as they

become aware of evaluate, purchase, consume, and tell others

about product and services".

In a simple word buyer behavior is the process by which

19


20/82

an individual.

Whether, what, when, where, how, and from whom topurchase goods and services.

2.4 DETERMINANTS OF CONSUMER BEHAVIOR

A buyer's purchase decisions are highly influenced by

buyer's

culture, social, personal, psychological factors.

CULTURAL FACTORS

Culture represents an overall social heritage, a distinctive

form of environment or adaptation by a whole society of

people, it includes a set of learned beliefs, values, attitudes,

morals, customs, habits and forms of behavior that are shared

by a society.

SOCIAL FACTORS

This includes :

References group

Consumers accept information provided by their peer

groups on the quality, performance, style, etc. These groups

influence the person's attitude, expose them to new behaviors

and' life style, and create a pressure on the individual.

Family

20


21/82

Most consumers belong to a family group. The family

can exert considerable influence in the shaping the patterns of

consumption and indicating the decision making roles.

21


22/82

Roles and Status

Roles are activities of the person in a group. Each role

carries a status. People will choose the products that willcommunicate their status to the society.

PERSONAL FACTORS

A buyer1s decision is also influenced by personal

characteristics, notably the life cycle stage, occupation,

economic, circumstances, lifestyle and personality and self-

concept.

The lifecycle of a person begins with die child birth,

shift to dependent infancy, adolescence, teenage, adult, middle

aged, old then ends with death. Under each stage people's

buying behavior is different.

Person's behavior depends up on his occupation. His need

satisfaction depends on his occupation, which provides him the

means.

Personality is defined as the person's distinguishing

psychological characteristics that lead to relatively consistent

and enduring responses to his or her environment. Personality is

described in terms of such trades as self-confidence,

dominance, autonomy, difference, sociability, defensiveness

and adaptability.

PSYCHOLOGICAL FACTOR MOTIVATION

Motivation acts as a driving force in the floor towards

22


23/82

purchase action. Motivation that is, set into motion to take

action to fulfill the need or wants. A human being is motivated

by want when these needs are backed by purchasing power itbecomes a want. Motivation is mental phenomenal.

PERCEPTION

Perception is operationally critical. Perception causes the

behavior in a certain way. Perception gives the direction or part

to be taken by the buyer. To perceive is to see, to hear, to touch,

to taste, to smell and to sense something or event or relation

and to organize, interpret and find the meaning in the

experience.

LEARNING

Learning describes changes in an individual's behavior

arising from experience. Learning reference to change in the

behavior brought about by practice or experience. Almost

everything one does or things his learned.

BELIEFS

Believe is a descriptive though that a person holds about

something. These beliefs may be based on knowledge, opinion

or faith.

ATTITUDE

23


24/82

Attitude describes as a person's emotionalized inclination

to respond positively or negatively to an object or class ofobjects. Attitude affects both perception and behavior to have

an attitude means to be involved emotionally and ready for

action.

24


25/82

2.5 MARKETING AND CONSUMER BEHAVIOR

The term consumer behavior refers to the behavior thatconsumers display in searching for purchasing, clothing,

evaluating and disposing of product and services that may

expects will satisfy their needs. Study of consumer behavior is

the study of how individual make decisions to spend their

available (time, money, and efforts) on consumption related

items.

The Field of consumer behavior is rooted in the

marketing concept, a marketing strategy that involves in the late

1950. The marketing concept refers to the consumer needs and

wants that are to be given prime importance rather than more

profit making. The marketing concept is based on premises that

a marketer should make what it can sell instead of trying to sell

what it has made.- While the selling concept focus on the needs

the seller, the marketing concept focus on the need of the buyer.

The primary purpose for studying the consumer behavior

as a part of marketing curriculum is to understand why and how

consumers make their purchase decisions. These insights

enable marketers to design more effective strategies.

On the other hand an in depth understanding gives

marketers and unfair advantage over sensitive element like

price, quality, etc., The solution to such practice can curbed by

keeping consumer's well informed about the product itself.

25


26/82

Finally Phillip Kotler and authority on marketing states,

although it only takes a semester to learn marketing it takes a

lifetime to master it.

CUSTOMERS

C - Care for the customers

U - Understand the customers

S - Study the customers

T - Trust the customers

O - Oblige the customers

M - Meet the customers

E - Evaluate the customers

R - Response the customers

S - Sell and win the customers

26


27/82


28/82

3.1

ORIGIN OF THE ORGANISATION

Coffee Board is a statutory organization constituted

under the Coffee Act VII of 1942 and comes under the

administrative control of the ministry of commerce,

government of India. Coffee board was established to perform

the following function.

1. Promotion of the sale and consumption in India and

elsewhere of coffee product in India.

2. Promotion of agriculture and technological researchin interest of the coffee industry.

3. Assistance to coffee estates for their development.

4. Securing better working condition and improvement

of amenities and incentive for workers.

5. Working of the measures enumerated in coffee act

elating to co-operation of the surplus pool.

28


29/82

The main purpose for the government of India to set up

the board was to develop the growth of Indian coffee industry.

Increasing coffee production internal marketing, export

marketing, quality control, research and promotion are all

activities of the board.

29


30/82

3.2 GROWTHS AND DEVELOPMENT OF THE

ORGANIZATION

Indian coffee was mainly depending upon export in the

first quarter of the country. Coffee industry was almost ruined

due to damage by pests & disease and the general depression of

thirties. Planters found the coffee industry to be a losing

proposition and some practically abandoned the plantations.

Government of India passes coffee cess Act XIV of 1935

and set up the first Indian coffee committee in November 1935

with the main objective of promoting the sale and increasing

the consumption of Indian coffee at home & abroad.

One the outbreak of the II world war the industries export

outlet was blocked, resulting in loss of European market. The

industry received setbacks and faced unprecedented crisis. The

Indian coffee market expansion board was set up in 1940.

Indian coffee board succeeded the Indian coffee cess committee

in 1942 under the coffee Act VII of 1942.

This Act brought, within its preview, all estates of 5 acres

and above and reduced the ISO to 10% of the crop in 1942-43.

Further notification dated 28-08-43 every estate under its

preview irrespective of acreage. No ISQ was declared after

1943 till 1992-93 seasons. Every planter was obliged to deliver

his entire crop to except such quantity as were permitted by the

board to retain for his domestic seed purposes.

30


31/82

On the recommendation of fourth coffee control

conference convened by the government in April 1946, theGovernment placed the life of the Act on a permanent basis. In

fact the unit system of selling coffee by the pool marketing

themselves to enable the board to tackle the problem of control

of coffee, Government passed an amendment Act of 1954 & the

amendment Act was brought into force in 1955. One of the

important changes of the Act was to appoint a full time

chairman to coffee board, as a chief executive of the board with

33 members including the chairman.

For overseas promotion, an Indian coffee market

expansion a board was organized in London. The coffee

commenced works on 20th July, 1936 under the stewardship of

a Director of Indian coffee propaganda in London.

The external promotion work was done in the UK in

close co-operation with the wholesalers, distributors,

institutions and government departments by interesting them in

Indian coffee and removing prejudices against it. Indian coffee

was brought to the notice of public and retailers through

exhibition and displays.

Today external publicity of Indian coffee is largely

through participation in International trade fares and exhibition

and displays. Since its inception in the year 1942 the coffee

board had maintained its monopolistic position over the

31


32/82

industry by following the pool marketing system. This system

was followed for nearly 50 years i.e., up to the year 1992-93

after which an area of liberalization started were new policieslike ISQ & FSQ were introduced.

32


33/82

3.3 PRESENT STATUS OF THE ORGANIZATION

Unitil 1992-93 the marketing was regulated by the coffee board. The era of liberalization started with the

INTRODUCTION OF INTERNAL SALE Quota (ISQ)

allowing the growers to sell 30% of their output directly in the

domestic market. The ISQ was replaced by free sale quota

(FSQ) scheme in 1993-1994 allowing the growers in 1994-95

in the season FSQ was increased to 100% for all.

The coffee board which was administrating and

regulating the market fully till 1992-93, has oriented itself for

better research, assistance to industry and training. It also

provides market information and intelligence activities. Last but

not the least it aims at strengthening the existing auctioning

system.

Finally the coffee board is strongly emphasizing on

establishing the future markets for the coffee commodity.

3.4 FUNCTIONAL DEPARTMENTS OF THE

ORGANISATION

A. SECRETARIAT

The secretariat is in charge of the board. It seeks not only

to coordinate the activities of several department of the board

but also deals with those matters, which do not fall within the

33


34/82

domain of the any other department. A part from the personal

and general matters one of the major functions dealt with by the

secretariat pertains to the labour welfare. The board which hadonly two departments at the beginning has at present the

following department apart from the secretariat viz.

1. Coffee Promotion department

2. Marketing department which has been realized

from the' activity of poor marketing due to

liberalized marketing policy of 100% FSQ for all

small and large growers.

3. Development department

4. Extension Department

5. project planning

6. Research, Assistance and training.

7. Accounts and finance.

The coffee board has 33 members including the

chairman, who* is the Chief executive of the Board except for 3

MPS who are elected as representative, all others are

appointed by the government of India. The board in each

year, out of its own member's elects a person to be a vice

chairman for a period of 12 months.

The structure of the board is a follows :

1. Members of parliament - 3 (Lok Sabha - 2, Rajya Sabha.

2. Representative of the government of the growing state -

* 4 (Karnataka, Tamilnadu, Kerala, Andra pradesh).

34


35/82

3. Representatives of other coffee growing state

4. Coffee growers - 10 (3 large growers, 7 small growers)

5. Coffee traders - 36. Coffee Curers - 2

7. Coffee Consumers - 2

8. Labour - 4

9. Instant Coffee manufactures 1

10. Eminent personalities in the field of research / marketing

of coffee - 1. The term of the board is for 3 years. The present

Chairman of the Board is Mr.G.V. Krishna Rau.

The Board functions through its size standing committees,

which are appointed by each year by election for a period of

one year.

These are :

1. Executive committee.

2. Marketing committee.

3. Propaganda committee

4. Development committee

5. Research committee

Or

6. coffee quality committee

The members of the board are distributed accordingly in one or

more of the above - mentioned committees.

B. COFFEE PROMOTION DEPARTMENT

35


36/82

The Promotion Department as a department constitutes of

the Board, is charged with the responsibility of increasing the

sales in the consumption of Indian coffee both within thecountry and abroad. To fulfill this responsibility which is best

owned on the department

under the coffee Act.

36


37/82

The department has been undertaking several

promotional endeavors which can be broadly classified as under

:1) Generic promotion that is promotion of the image of

the coffee industry and of the coffee as an ideal

beverage.

2) Market Promotion for the sale of the coffee seeds,

coffee powder and the coffee on the cup from units run

by the Board, through agencies etc., in India.

3) Media Promotion through advertisement in

newspapers,

publications of special reports, pamphlets, Board's own

periodicals.

This Department functions through its statutory committee's,

viz. Propaganda committee and the board and is headed by

the directors of promotion (the charts showing the set up of

the department appended).

MARKETING DEPARTMENT

Since, the liberalization of the marketing structure during

1993-1994 the marketing department, in the coffee board has

been reduced to a bare minimum where most of the staff opting

for VRS (Voluntary Retirement Scheme) and few being

employed at other departments.

DEVELOPMENT DEPARTMENT

37


38/82

The important function-of the development department is

to render financial assistance coupled with the technical

assistance to the coffee growers for the overall developmentand improvement of their estates through increase in

production. In this section the board is implementing 6 types of

loan schemes and 3 types of subsidy schemes.

They are :

1) Intensive cultivation loan

2) Replanting loan

3) Extensive cultivation loan

4) Special purpose loan

5) Hire purchase loan

6) Crop hypothecation loan

7) Replanting subsidy

8) Interest subsidy

9) Expansion subsidy

DEVELOPMENT DEPARTMENT ORGANIZATION

CHART

C. EXTENSION DEPARTMENT

The extension wing is one of the vital links between the

planning committees on the one hand and the research on the

other &

is in extension since 1948.

In order to achieve the various physical & financial

38


39/82

targets fixed for the industry & to have effective administration,

the entire traditional areas has been divided into 5 regions

headed by officer of the rank of the deputy director (Extension),who in turn is assisted by the senior liaison officers at the

district level & junior director (E) at Bangalore. The traditional

coffee growing areas includes Karnataka, kerala, and Tamil

Nadu, which account for 98% of the area under coffee.

39


40/82

Presently the extension services in traditional areas cover

an area of 2.35 lakhs hectares owned by 1.15 Lakhs growers.

Out of these, 98% of the growers who own around 61.7% ofthe area form the small growers sector (10 HA & below).

Today the extension services of the coffee board are quite

unique in transfer of technology in the entire country.

D. PROJECT & PLANNING DEPARTMENT

The projects wing is headed by a joint director

(planning & project) at head office, Bangalore. There are three

deputy directors (Vizag, uwahaty & Haflong) eight senior

liaison officers (Andhra Pradesh, Orissa, runachal Pradesh,

Assam, Nagaland, Mizonram, andtripura) and seven junior

liaison officers assisting the respective states in extension,

training and development of coffee. One senior liaison officer

at the coffee board regional office, Guwahati, coordinates the

activities in the North-East region.

The project wings formulate plan project and programs

as per the guidelines to achieve the perspective plan target on

production and marketing. It also functions as the co-ordinating

department in monitoring and evaluation of various plans

programs pertaining to research, extension development,

promotion and marketing department of the board.

E. RESEARCH DEPARTMENT

40


41/82

Promotion of agriculture and technology in coffee for the

benefit of the coffee industry has been one of the primary

functions of the coffee board. The research department forachieving this objective is dressing itself at central research

institute, central research station research station at central

research substation, Chetalli, Coorg, Karnataka, Chundale,

Kalpetta, kerala, Raghavendranagar, Chintapali, Andhra

Pradesh, Tandigudi, Tamilnadu, Diphu, Assam.

F. FINANCE DEPARTMENT

This department has been divided into two (2): Pool

Fund and General Fund.

POOL FUND:

According to the provisions of section 25 of the coffee

Act, the sale proceeds of coffee are credited to a fund called

Pool Fund. The pool fund transactions involve major activities

as under:

a. Payment to growers whose number is more than a lakh,

in 6-7 installments during a period of 6 months.

b. Arrangements payment to Pool agents with bank for

keeping Funds at various places payment to growers

through pool agents.

c. Periodical payment to pool agents and collecting agents

of the board.

d. Payment of central excise duty, Export duty as well as

duty of custom under the coffee act.

41


42/82

e. Accounting of stock accounts showing receipts

and disposal.

GENERAL FUND;

Section 30 of the coffee Act prescribes General Fund

is

credited with :

i) All amounts paid to the board by the central

Government under subsection 1) 13, (i.e., proceeds of

duty of customs and duty of excise under section 11

and 12 of the Act reduced by the cost of collection

transferred).

ii) Any sums transferred from the Pool Fund to General

Fund under the provision to subsection (2)of section

32 (provided that where, after the requirement of the

clauses of the subsection have been met, there

remains any excess in the pool fund, the board may,

with the previous section of such excess to the credit

of the General Fund).

iii) All fees levied and collected by the board under the

act.

BORROWING POWER

Rule 38 of the coffee rules, 1955 has been amended with

the effect from 18-10-1988 to enable the board to have cash

credit limit up to Rs.275 crores.

42


43/82

In pursuance thereof, the state bank has been allowed a

credit limit for 1989 (as requested by the board) of 205 crores.The entire' amount carries the export packaging credit interest

rate of 9.5% p.a. the rate of interest has been reduced to 7.5%

p.a. JBrom: 1-3-1989. any withdrawal in excess of the export

packaging credit attract interest rate at 16.5% p.a.

43


44/82

CHAPTER 4

RESEARCH

METHODOLOGY

44


45/82

4.1 TITLE OF THE STUDY

Analysis of consumer perception towards different

brands of coffee in jalandhar city.

4.2 STATEMENT OF THE PROBLEM

Poor consumption of Indian coffee by the consumers in

comparison to consumption of various other brands of coffee.

4.3 OBJECTIVES OF THE STUDY

a. To find out the consumer behavior towards

different. brands of coffee in jalandhar city.

b. To know the consumer's opinion to use coffee.

c. To recommend the new opportunities in the market

for the improvement of sales and consumer

satisfaction towards particular brands of coffee.

4.4 SCOPE OF THE STUDY

The marketing research in this context is concerned with

one of its several function namely marketing research which

deals with the study of the market for analyzing the consumer

behavior and consumer attitude towards different brands of

coffee in jalandhar city.

The result of the study helps coffee industry and coffee

planters to get feedback of the coffee consumers in the fastest

45


46/82

growing city in Asia viz Bangalore, about their attitudes and

behavior towards different factors.

4.5 LIMITATIONS OF THE STUDY

1. It is confined to jalandhar City

2. It is confined to coffee users only

3. The sample size is confined to 100 people.

A. RESEARCH DESIGN OF THE STUDY

This project is a descriptive research with seeks to find

out "what will be the coffee consumer towards different

brands of' coffee".

B. SAMPLING PLAN

Sampling plan can be classified into 3 sections as

mentioned

below :

Sampling unit

Sampling unit referrs to who are the sample target. In this

project study, the sample units are the business class,

executives, professionals, house wives, students and the worker

class.

Sample Size

46


47/82

This refers to the total number of people included in the

sampling plan.

In this project study, sample size is 70 coffee consumers

in jalandhar City.

Sampling procedure

This refers to the method incurred for choosing the samples.

In this project study the sampling procedure undertaken is the

random sampling method.

i. PRIMARY DATA

Here first hand information is obtained by distributing

printed questionnaires .

ii. SECONDARY DATA

Here the information is obtained from the boards

publication, report, journals, books, magazines, and

newspapers, management reviews.

C. SOURCES OF DATA

Mainly two sources of data have been used in the making

of this project report.

47


48/82

48


49/82

SOURCES OF DATA

PRIMARY DATA SECONARY DATA

AQUESTIONNARIES 1) BOOKS

2) JOURNALS

3) BOARDS PUBLICATIONS &

REPORTS

4) MANAGEMENT REVIEW

5) NEWSPAPERS

D. DATA COLLECTION INSTRUMENTS

In this study conducted the foremost data collection

instrument that has been used is the questionnaires. The

questionnaire has been designed both open and closed ended

questions.

D. FIELD WORK

Questionnaire was distributed at office

establishment, colleges, and houses, colleges.

E. DATA PROCESSING AND ANALYSIS OF PLAN

Processing and analysis of data-has been done by means

of printed questionnaires method and many statistical

techniques that include percentage analysis, pie chart,

histograms, which are followed by conclusion and

49


50/82

recommendation.

CHAPTER 5

DATA ANALYSIS AND

INTERPRETATION

50


51/82

TABLE. 1

NO.

OF

MALE AND FEMALE RESPONDENTS SURVEYED

PARTICULARS NO. OF RESPONDAENTS PERCENTAGE

MALE 53 53FEMALE 47 47

TOTAL 100 100

ANALYSIS:

Out of 100 respondents surveyed 53% of them are male

consumers & 47% of them are female consumers.

0100090000037800000002001c0000000000040000000301080

0050000000b0200000000050000000c029b08db0a040000002e

0118001c000000fb021000070000000000bc020000000001020

22253797374656d0008db0a0000c0fc0000ac5d110004ee83397

86221000c020000040000002d01000004000000020101001c00

0000fb029cff0000000000009001000000000440001254696d65

73204e657720526f6d616e00000000000000000000000000000

51


52/82

TABLE -2

AGE GROUP OF RESPONDENTS

AGE GROUP NO OF RESPONDENTS PERCENTAGE

15 -30 years 47 4730-45 years 36 36Above - 45 17 17

Total 100 100

ANALYSIS:

Out of total number of respondents surveyed majorities

i.e. 47% of the respondents belongs to the age group of 15-30

years, 36% of them belongs to the age group in between 30-45

years and the rest i.e. 17% of them belong to the age group 45

years and above,

52


53/82

47

36

17

0

5

10

15

20

25

30

35

40

45

50

No.ofRespondents

(%)

15 -30 years 30-45 years Above - 45

Age Group

15 -30 years 30-45 years Above - 45

TABLE-3

OCCUPATION OF THE RESPONDENTS

OCCUPATION NO OF RESPONDENTS PERCENTAGE

Business class 21 21Worker class 40 40Housewives 10 10

Students 29 29

Total 100 100

ANALYSIS:

Out of total number of respondents surveyed about 21%

belongs to the business class, about 40% belongs to the worker

class, and about 10%

53


54/82

21

40

10

29

0

5

10

15

20

25

30

35

40

No.ofResponden

ts(%)

Business

class

Worker class Housewives Students

Occupation

Business class Worker class Housewives Students

TABLE-4

CONSUMPTION OF COFFEE

CATEGORY NO OF RESPONDENTS PERCENTAGE

Daily 76 76

Occasionally 24 24Total 100 100

ANALYSIS:

Out of 100 respondents surveyed 76% of them are daily

Coffee drinkers and 24% of them are occasionally Coffee

drinkers.

54


55/82

76%

24%

Daily Occasionally

TALBE-5

ALTERNATE CHOICE AMONG THE RESPONDENTS

ALTERNATIVES NO OF RESPONDENTS PERCENTAGE

Tea 41 41Milk 22 22

Soft drink 18 18

Nothing 19 19Total 100 100

ANALYSIS:

55


56/82

of Respondents (%)Out of total number of respondents about 41 of them

consume Tea, then about 22 of them consume Milk, about 18 of

them consume Soft drink, and the remaining 19 does notconsume at all.

0100090000037800000002001c0000000000040000000301080

0050000000b0200000000050000000c029b08db0a040000002e

0118001c000000fb021000070000000000bc020000000001020

22253797374656d0008db0a0000c0fc0000ac5d110004ee83397

86221000c020000040000002d01000004000000020101001c00

0000fb029cff0000000000009001000000000440001254696d65

73204e657720526f6d616e00000000000000000000000000000

00000040000002d010100050000000902000000020d00000032

0a5a0000000100040000000000dd0a980820582d00040000002

d010000030000000000

TABLE-6

PERCENTAGE OF CONSUMPTION OF BRANDED:

UNBRANDED OR BOTH

PARTICULARS NO OF RESPONDENTS PERCENTAGE

Branded 50 50Unbranded 36 36

Both 14 14

Total 100 100

56


57/82

ANALYSIS:


of them consume branded coffee, about 36% of them consume

unbranded coffee, about 14% of them consume both branded

and unbranded.

50%

36%

14%

Branded Unbranded Both

TABLE - 7

PERCENTAGE OF CONSUMPTION OF FILTER COFFEE

INSTANT COFFEE OR BOTH


Filter 43 43

Instant 30 30

Both 27 27

57


58/82

Total 100 100

ANALYSIS:


of them consume filter coffee, 30% of them consume Instant

coffee, and about 27% of them consume both filter as well as

instant coffee.

0

5

10

15

20

25

30

35

40

45

No.ofRespondents(%)

Filter Instant BothParticulars

Filter Instant Both

TABLE-8

PERCENTAGE OF CONSUMPTION OF COFFEE

THROUGH OUT THE YEAR


58


59/82


60/82

RESPONDENTS CONSUME MORE COFFEE

SEASON NO OF RESPONDENTS PERCENTAGESummer 8 8

Winter 35 35Rainy 42 42

Can't say 15 15Total 100 100

ANALYSIS:

Out of number of respondents surveyed about 8% of

them take coffee in the summer season, about 35% of them take

coffee in the winter season, about 42% of them take coffee in

the Rainy season, and the remaining 15% of them have no idea.

8

35

42

15

0

5

10

15

20

25

30

35

40

45

No.ofRespondents(%

)

Summer Winter Rainy Can't say

Season

Summer Winter Rainy Can't say

TABLE-10

60


61/82

DIFFERENT BRANDS OF COFFEE RESPONDENTS

ARE AWARE OFNAME OF BRAND NO OF

RESPONDENTS

Nescafe 94

Bru 91

Brooke Bond Green Lable 62

Diacafe 12

Indian coffee 27

Cothas 68

Coffee Day 65

Kwality 12

Coorg 56

Tata Kaapi 25

ANALYSIS:

The response given by the respondents exceeds the

sample size because of the multiple choices given by the

respondents out of which 94 of the respondents opt for Nescafe:

91 respondents opt for Bru; 68 opt for Cothas; 65 for Coffee

Day; 62 for Brooke Bond Green Level; 56 for Coorg; 27 for

Indian Coffee; 25 for Tata Kaapi and remaining 12 for Diacafe

& Kwality.

61


62/82

9491

62

12

27

6865

12

56

25

0

10

20

30

40

50

60

70

80

90100

No.ofRespondnets(%)

Nescafe

Bru

BrookeB

ondGreenLable

Diacafe

Indiancoffee

Cothas

CoffeeDay

Kwality

Coorg

TataKaapi

Name of Brand

Nescafe Bru Brooke Bond Green Lable

Diacafe Indian coffee Cothas

Coffee Day Kw ality Coorg

Tata Kaapi

62


63/82

TABLE 11

ATTRIBUTES OF COFFEE RESPONDENTS

PERCEPTION

ATTRIBUTES NO OF RESPONDENTS

Taste 46

Quality 25

Flavor 18

Aroma 20

Energy 6

Price 40

Packaging 2

Manufacturer's Name 2

ANALYSIS:

Out of the total number of the respondents 46 of them

considered Taste as the top most attribute, followed by 40 of

them going for price as the second attribute 25 of them is

quality conscious 20 of them going for Aroma, 18 of them

going for flavor, 6 of them going for energy, and the remaining

2 of them going for packaging and manufacturer's name as the

main attribute of coffee.

63


64/82

46

25

1820

6

40

2 2

0

5

10

15

20

25

30

35

40

45

50

No.ofRespondents(%

)

Taste

Quality

Flavor

Aroma

Energy

Price

Packaging

Manufacturer's

Name

Attributes

Taste Quality Flavor Aroma Energy Price Packaging Manufacturer's Name

64


65/82

TABLE 12

THE RESON FOR WHY COFEE IS CONSUMED MOST

OFTEN

REASONS NO OF RESPONDENTS

Refreshing 79

Reduce fatigue 14

Habit 33

Daily Routine 35Family Trend 18

Fighting Headache 16

To Prevent Sleep 11

To Promote Sleep 1

ANALYSIS:

The response given by the respondents exceeds the


respondents out of which 79 of the respondents consider

refreshing as the main reason for consuming coffee; about 35 of

the respondents says drinking of coffee is a daily routine; 33 as

habit; 18 as family trend; 16 as fighting headache; 14 as reduce

fatigue.

65


66/82

79

14

3335

18 1611

1

0

10

20

30

40

50

60

70

80

No.ofRespondents(%)

Refreshing

Reducefatigue

Habit

DailyRoutine

FamilyTrend

FightingHeadache

ToPreventSleep

ToPromoteSleep

Reasons

Ref reshing Reduce f atigue Habit Daily Routine

Family Trend Fighting Headache To Prevent Sleep To Promote Sleep

66


67/82

TABLE-13

PURCHASE ONCE QUALITY OF COFFEE

POWDER THE RESPONDENTS IN A WEEK

ANALYSIS:

Out of the total number of respondents majority of

respondents about 50% of them buys coffee powder in the

range between 100 gm - 500 gm, about 18% of them buys in

between 50 gm - lOOgm, about 17% of them buys in greater

quality i.e., in between 500gm & more and the rest about 15%

of them buys in between 25gm - 50gm.

QUALITY OF COFFEE POWDER THE RESPONDENTS

PURCHASE ONCE IN A WEEK

GRAMS NO OF RESPONDENTS PERCENTAGE

10 gm 500 gm 50 5050gm 100gm 18 18

500 gm and more 17 17

25 gm 50 gm 15 15Total 100 100

67


68/82


69/82

42%

48%

5%5%

Very good Good Medium Poor

TABLE - 15

RESPONDENTS CONSCIOUSNESS WHILE BUYING A

BRAND


Price conscious 48 48

Taste conscious 43 43

Brand conscious 9 9

Total 100 100

ANALYSIS:

69


70/82

Out of the total number of the respondents about 48% of

them are price conscious, about 43% of them are taste

conscious and the rest 9% of them consider as brand consciousas the main factor while buying any coffee brand.

48

43

9

0

510

15

20

25

30

35

40

45

50

No.ofrespondents(%)

Price conscious Taste conscious Brand conscious

Particular

Price conscious Taste conscious Brand consciou

70


71/82

CHAPTER 6

FINDINGS

&

RECOMMENDATIONS

71


72/82

6.1

FINDINGS

Out of the

total number of

the respondents

surveyed about

53 of them are

Male consumers

and about 47 of

them are Female

consumers.

The total number of surveyed consumers constitutes the sample

size of 100 in which 47 of the consumers belong to the group

15-30 years, then 36 are in the age group 30-45 years, and then

the remaining 17 of them belongs to the age group 45 years and

above.

The different classes in which the respondents falls are

about 21% of them belong to the business, about 40% of them

belong to the worker class, and then about 10% of them belong

to the housewives, and the remaining 29% of them belong tothe students.

The percentage of daily coffee drinkers 76% and 24% of

them are

occasionally coffee drinkers.

72


73/82

The best alternative given by the respondents, if they

stop drinking coffee are as follows:

35% of them opt for Tea, 17% of them opt for Milk, and

then 15% of them opt for Soft drink, and the remaining 33% of

them opt for nothing.

The percentage of consumption of branded coffee is

about 50% 36% of them consume branded coffee and the rest

14% of them consume both branded and branded coffee. 43%

of the respondents consume filter coffee, and 30% of them

consume Instant coffee and the remaining 27% of them

consume both Filter as well as Instant coffee.

Out of the total number of the respondents 79% of them

prefer to consume coffee trough out the year which is Uniform

and then the rest about 21% of them prefer to consume coffee

occasionally.

Surveyed respondents are 100 out of which 8% of them

take coffee in the Summer season, then 35% of them take

coffee in the Winter season, about 42% of them take more

coffee in the Rainy season, and the remaining 15% of them

have no idea.

The Nescafe brand is the top in the awareness of the

coffee brand as 94 of the respondents are aware of it, 91 of the

respondents aware of Bru, 62 respondents aware of Brooke

73


74/82

bond green label, 12 of the respondents aware of Diacafe an

Kwality, then 27 of the respondents aware of Indian coffee,

68% of the respondents aware of Cothas, 65 of the respondentsAware of coffee day 56% of the respondents aware of Coorg,

then finally 25 of the respondents aware of Tata kaapi.

Taste is the most attribute by [46 respondents] followed

by the Price [40 respondents ] then Quality coming in the third

position [25] other attributes are Aroma by [20] and then Flavor

by [18] Energy by [6] then Packaging and Brand's name by [2],

The responses given by the respondents exceeds the


respondents out of which' 79 of the respondents consider that

Refreshing as the main reason for consuming coffee, about 35

of the respondents say drinking coffee is a daily routine, 33 of

them say as a habit, 18 of them say as a trend 16 of them say as

fighting headache, 14 of them say as a reducing fatigue, 11 of

them say as opt for preventing sleep as the main factor for

coffee consumption.

Majority of the respondents about 50% of them buys

coffee powder in the range between 50gm-100gm, about 18%

of them buys in the range between 50gm-100gm, 17% of them

buyes in greater quantity i.e. in between 500gm and more and

the rest about 15% of them buyes in between 25gm-50gm:

45% of the respondents are Price conscious, about 43%

74


75/82

of them are taste conscious and the rest 9% of them consider

brand's name as the main factor while buying any coffee.

75


76/82

6.2 RECOMMENDATION:

Most of the people like good quality of coffee with

nominal cost hence the authorities / organizations /

industries should make available cost based coffee brand.

Coffee industry should create awareness among the rural

population for the benefit of coffee consumption.

Coffee industry should introduce to the extent the coffee

bar or units at all the public places example railway,station, industrial centers, academic institutions,

hospitals. Etc.

The coffee industry should introduce eco-friendly coffee,

example : the Diacafe.

Promotion must be given to promote those unbranded

coffee, which are not popular in the market.

76


77/82

QUESTIONNAIRE

77


78/82

QUESTIONNAIRE

Dear Sir,

Ramandeep Gautam, a Management student is doing a project

work on the ANALYSIS OF CONSUMER PERCEPTION

TOWARDS DIFFERENT BRANDS OF COFFEE IN

Jalandhar CITY", in partial fulfillment of the requirement of

the MBA course of Punjab Technical University. I would be

greatful if you could kindly spare some time to answer these

questions. All the information given you will be strictlyconfidential.

1] Name of the consumer:

______________________________

2]Age group:

15-30 years: [ ]

30-45 years: [ ]

above 45 years: [ ]

3]Sex: a] Male: [ ] b] Female: [ ]

4] occupation:

a] Student: [ ] b] Business:

[ ]

c] Housewife: [ ] d] Worker Class:

[ ]

e] Others [ ]

78


79/82

5] Income per Month:

a]Rs 15000:

[ ]

6] Do you consume coffee?

Yes: [ ] No: [ ]

7] If yes:

a] Daily: [ ] b] Occasionally: [ ]

when _______________

8] If No:

Mention other:

Alternatives: ____________________________

9) If yes

a] Branded coffee: [ ] b] Unbranded coffee: [ ]

10] If branded

a] Filter coffee: [ ] b] Instant coffee: [ ]

11] If unbranded,

Where do you buy coffee?

___________________________________________

12] Which brand of coffee are currently using?

79


80/82

__________________________________________________

13] Is your consumption of Coffee uniform through out theyear?

Yes: [ ] No: [ ]

14] If No:

In which season do you do you take Coffee more?

A] Summer: [ ] B] Winter: [ ]

C] Rainy: [ ] D] Can't say: [ ]

15] Is there any particular reason for taking more coffee in

that season?

**THANK YOU**

80


81/82

BIBLIOGRAPHY

81


82/82

BIBLIOGRAPHY

1. Marketing by

Phillip Kotler

2. Principles Marketing

P.NJReddy,

S.A.Sherlekar

3. Consumer behavior by

Leen G.Schiffman,

Leslie Lazar Kanuki

Documents

Complete Preference Towards Coffee