Upload
ranvir-rathore
View
244
Download
1
Embed Size (px)
Citation preview
8/4/2019 Project on Spices Sibaca
1/72
A
PROJECT REPORT
ON
STUDY ON CONSUMER BUYING BEHAVIOR TOWARDS SPICES
AND COMPARATITIVE ANALYASIS OF SHREE SUBHAM SPICES
WITH OTHER BRAND
IN RAJASTHAN
SUBMITTED TO UNIVERSITY OF PUNE IN PARTIAL FULFILLMENT OF THE
REQUIRMENTS FOR THE
AWARD OF MASTERS IN MARKETING MANAGEMENT (2010-12)
SUBMMITED BY:- PROJEC GUIDE:-
MAHENDRA SINGH GEHLOT DR. SACHIN BORGAVE
SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION & COMPUTER
APPLICATION LONAVALA (PUNE)
8/4/2019 Project on Spices Sibaca
2/72
PREFACE
No professional curriculum is considered complete without work experience. Each individual
who under takes the management education has to pass the training phase before he considers
him sell fully qualified managers.
Entering the industry is like stepping in a new world. At first, everything seems strange but with
the passage of time, one starts understanding all that is happening around him/her. All the
fundamental concepts that are applicable in the organization leave the individual to work at its
own application. It is just a matter of applying the theory you know to give a practical situation
and to learn this, there is no better place, than the organization itself.
The detailed study of the "Consumer Buying Behaviorhave benefited me a lot in terms of thepracticality & understanding the concept of the existence of a Marketing Management in every
organization.
I hope that the organization would find my study effective.
Mahendra singh gehlot
MMM-II YEAR(2010-12)
8/4/2019 Project on Spices Sibaca
3/72
ACKNOWLEDGEMENT
I am very grateful to Mr. shubhendra kumar bafna , Mr. sudeep mukharjee and shree
subahm logistics limited who has given me this opportunity to explore the subject in depth by
providing platform through this summer project.
This project could not have been possible without valuable support and help of all the member of
SSLL group (Marketing Department) who not only served as supervisors but also encouragedme throughout Project.
I am really grateful to Mr sudeep mukharjee(executive manager of retail department ) who
guides me throughout the projects. He always assured me that the project will be a good learning
experience for future. By his guidance and co-operation the project is complete smoothly.
And last but not least we are grateful to all the Respondents who took part in my project and
patiently cooperated with us and enabled us to collect the necessary data required for our project.
Once again I thankshree subham logistics limited and the staff member of ssll groupfor their
support and encouragement through this project and inspiration for the rest of my life.
Mahendra singh gehlot
8/4/2019 Project on Spices Sibaca
4/72
DECLARATION
I, Mahendra Singh Gehlot hereby declare that the work title Study On Consumer behavior
towards spices and comparative analysis of shree subham with other brands in rajasthan
embodied in this summer project report has been carried out by me as an original work.
All information and facts and figures in this report are in my findings and are original in nature,
which are collected from various locations. This information is true to the best of my knowledge.
Further, I declare that no part of it has been submitted for any degree of any Institution
previously.
TABLE OF CONTENET
8/4/2019 Project on Spices Sibaca
5/72
Sr.
No.
Content Page No.
1 Project Detail 1-2
2 Indian spice Industries 3-6
3 Company Introduction 7-18
4 Companys ConsumerBuying Behavior Process 19-29
5 Project Objectives 30-31
6 Research Methodology 32-34
7 Limitations 35-36
8 Data Analysis 37-57
9 Findings 58-59
10 Suggestions & Recommendation 60-61
11 Conclusions 62-63
12 Annexure 64-66
13 Bibliography 67-68
8/4/2019 Project on Spices Sibaca
6/72
PROJECT DETAIL
Name of the company: Shree Subham Logistic Limited
Branch (Unit) Name: Jodhpur(Rajasthan)
Title of the project: Study on Consumer Buying Behavior
Type of project: Research Project
Duration of project: 45 Days(15th may to 30th june 2010)
Number of team members: 1
Area Under Done: jodhpur
Introduction to the Industry
8/4/2019 Project on Spices Sibaca
7/72
The Story of Indian spices is more than 7000 years old. The fame of
Indian spices is older than the recorded history. Centuries before Greece and Rome
had been discovered, sailing ships were carrying Indian spices, perfumes and
textile to Mesopotamia, Arabia and Egypt. It was the lure of these that brought
many seafarers to the shores of India. Long before Christian era, the Greek
merchants thronged the markets of South India, buying many expensive items
amongst which spices were one. Epicurean Rome was spending a fortune on Indian
spices, silks, brocades, Dhaka Muslin and cloth of gold, etc. It is believed that the
Parthian wars were being fought by Rome largely to keep open the trade route to
India. It is also said that Indian spices and her famed products were the main lure
for crusades and expeditions to the East. Today when spices cost so little, it seems
unbelievable that they were once a royal luxury and those men were willing to risk
their lives in quest of them. Though there were the Dark Ages, but there were rich
people who had gold to exchange for pepper and cinnamon. It was in the year 1492
A.D., that Christopher Columbus discovered the New World. Five years later, four
tiny ships sailed southward from the port of Lisbon, Portugal, under the guidance
of Captain Vasco Da Gama. Like Columbus, Vasco Da Gama too was searching
for a new route to the spice lands of Asia. While Columbus failed to achieve the
goal, Da Gama succeeded. In a two year, 24,000 miles round trip, he took his ships
around the continent of Africa to India and back to Lisbon. Only two of the four
ships survived to reach their homeport. These two ships brought back a cargo of
spices and other products worth 60 times the cost of the said voyage. The spices of
the East were valuable in those times, during these Middle Ages; a pound of ginger
was worth a sheep, a pound of mace worth three sheeps or half a cow. Pepper, the
most valuable spice of all, was counted out in individual peppercorns, and a sack
of pepper was said to be worth a man`s life. Da Gama`s successful voyage
intensified an international power struggle for control over the spice trade. For
8/4/2019 Project on Spices Sibaca
8/72
three centuries afterwards the nations of Western Europe - Portugal, Spain, France,
Holland, and Great Britain - fought bloody sea-wars over the spice-producing
colonies.
By the year 1000 Arabians had conquered the Indus valley, what is now India.
They brought the cumin and coriander that mixed with Indian pepper; ginger and
turmeric make up the base of so many South Asian dishes. It was this combination
of spices that centurys later British sailors spread throughout the world as curry
powder. In India, Arabian traders got the rare and exotic spices of the Far Eastfrom local spice merchants. Arabian traders were able to make good money
supplying these spices, even with the high prices paid to the Indian middle men,
not only to their countrymen back home, but to Europe as well. These traders of
spices paid for the Art and Education for which Arabia became famous in the
present day. In many ways the culture of Arabia loved studying and learning
different things. Many great Greek and Roman plays were translated in Arabic, so
too were the geographic writings of Pliny and Ptolemy telling of the general
location of the tabled Spice Islands. In nutshell, the fascinating history of spices is
a story of adventure, exploration, conquest and fierce naval rivalry. The people of
those times used spices, as we do today, to enhance or vary the flavors of their
foods. Spices were also flavor disguisers, masking the taste of the otherwise
tasteless food that was nutritious, but if un spices, had to be thrown away. Some
spices were also used for preserving food like meat for a year or more without
refrigeration. In the sixteenth century, cloves were used to preserve food without
refrigeration. Cloves contain a chemical called eugenol that inhibits the growth of
bacteria. It is still used to preserve some modern foods like Virginia ham. Later,
mustard and ground mustard were also found to have preservative qualities. When
8/4/2019 Project on Spices Sibaca
9/72
spices were not available people went hungry because they could not preserve their
foods to carry them over to the winter. Such was the importance of spices those
days.
Broadly, there are two main subdivisions of spices one being the major spices and
the other is minor spices. For example the spices like pepper, cardamom, ginger,
turmeric, chilies etc., comes under major category. The important minor spices
grown in India are ajowan, aniseed, caraway, celery, coriander, cumin, dill seed,
fennel, fenugreek, garlic, onion, saffron, vanilla etc.
Exports of Indian Spices
In last few decades India faced enormous growth in the exports of Indian spices in
the world those exports includes branded and non-branded. Indian spices are
exported to more than 140 countries. The aroma, flavor and exquisite
characteristics of Indian spices are well acclaimed the world over. The wide range
of 52 spices and its products in our export basket have impressed the discerning
consumers. These buyers have identified India as the destination for quality spices.
North America is the major buyer of Indian spices followed by EU, Japan and
West Asian countries.
Basics of Spices
Spices are seasonings for food that come from the bark, buds, fruit or flower parts,
roots, seeds or stems of various aromatic plants and trees.
According to the American Spice Trade Association (ASTA), spices are 'any dried
plant product used primarily for seasoning purposes.' This definition covers a wide
range of plant and plant parts: tropical aromatics, leafy herbs, spice seeds, roots,
dehydrated vegetables, and spice blends.
8/4/2019 Project on Spices Sibaca
10/72
The earliest written record in India on Spices is the venerable Vedas - such as the
Rig Veda (around 6000 BC), and the others - Yajurveda, Sama and Atharva.
During the Vedic period, information was primarily was handed down orally from
generation to generations through the medium of hymns. The Rig Veda contains
references to various spices such as horseradish - a close relation of Mustard and
Turnip. There are also references to Black Pepper in the Yajur Veda. These are but
few of the spices in the natural expanse of the subcontinent - in the mountain,
swamps, riverines, tropical rain forests, wetlands, marshy woodlands, rich valleys,
green fields in a pollution-free, & eco-friendly environment. The history of Indian
spices lies in the abundance & goodness that Mother Nature has blessed it with and
made it so popular world wide.
At the time only tropical aromatics like pepper, cinnamon, and cloves were
considered a spice. The leaves and seeds of temperate-zone plants like basil and
oregano were known as herbs. Today this classification has shifted somewhat, even
though still used in some circles. The term spice now generally includes a whole
range of elements: spices, herbs, blends and dehydrated vegetables.
Legally the Food and Drug Administration (FDA) still considers dehydrated
vegetables as separate and distinct from spices; they require such seasonings to be
labeled differently than spices. Spices used for coloring like paprika and saffron
are also labeled separately or as a 'spice coloring.' The U.S. Department of
Agriculture (USDA) follows similar rules as the FDA. Spice colorings and mustard
must be labeled separate from spices, onion and garlic are listed as flavors, and all
other dehydrated vegetables are labeled separately by name.
8/4/2019 Project on Spices Sibaca
11/72
Brief background of Spices Board:
Spices Board was constituted on 26th February 1986 under the Spices Board Act
1986 (No. 10 of 1986) with the merger of the erstwhile Cardamom Board (1968)
and Spices Export Promotion Council (1960). The Board has 35 regional offices,
38 field offices and 4 research institutions functioning all over India.
The mandate of the Board includes research and development of cardamom,
regulation of cardamom trade, quality evaluation/improvement, export promotion
of spices and support for post harvest improvement of spices, production and
research of vanilla, production of organic spices, and development of spices in
North East Region. The regulatory functions of the Board include registration of
spices exporters and licensing of dealers and auctioneers of cardamom.
Current scenario of export
Indian spices are exported to more than 140 countries. The aroma, flavor and
exquisite characteristics of Indian spices are well acclaimed the world over. The
wide range of 52 spices and its products in our export basket have impressed the
discerning consumers. These buyers have identified India as the destination for
quality spices.
North America is the major buyer of Indian spices followed by EU, Japan and
West Asian countries.
Current size of the Indian spice exporters
Indian spice industry sector consists of 2100 registered exporters, of which 100exporters contributes to the extent of 80% of exports. Out of the 380 manufacturer
exporters, 98 units have been established in-house laboratories and 35 units with
ISO 9000, 18 units accredited with HACCP certification. 32 spice brands have
8/4/2019 Project on Spices Sibaca
12/72
been registered with the Board. More than 20 processing units have upgraded their
technology to meet the international quality standards/buyers' requirements.
Different varieties of spices
Products of spices like spice powders/curry mixtures, spice oils and oleoresins
including mint oil and menthol crystal contribute nearly 50% of the total export
earning. Major value added products viz., spice oils & oleoresins, spice powders,
mixtures, blends, curry powders/pastes, spices in brine, freeze dried spices,
dehydrated spices, frozen spices, color extracts have got good demand in
developed countries. Recent additions to the list are vanilla, herbal spices and
organic spices which have become the focus products in the international market.
Value addition is the key.
Vision: The focus is to become loyal brand of consumers and get highest market
share .
Mission: To set and maintain our own standard of quality spices and food products
for consumers who value purity taste and health.
Shree subham logistics limited
8/4/2019 Project on Spices Sibaca
13/72
Group Chairman Shri
Mofatraj P. Munot
kalpatru group
kalpatru power
transmission
limited
JMC limitedShree Subham
Logistics Limited
kalpatru limited
Argos international
marketing Pvt. Ltd
property
solution(india) Pvt.
Ltd
8/4/2019 Project on Spices Sibaca
14/72
Taking the genesis of its name from Kalpavruksha - the mythological
tree of wish fulfillment; Kalpataru embodies the tree's ability to fulfill
every person's wish.
Established in 1969 by Mr. Mofatraj Munot, Founder Chairman,
Kalpataru Group has today diversified into different industry verticals.
The Group s turnover is in excess of Rs. 6,000 Crores and it employs
more than 20,000 employees (including Support Staff)
SHREE SHUBHAM LOGISTICS
LIMITEDAn ISO 9001:2008 Certified Company
Shree Shubham Logistics Limited (SSLL) an ISO 9001 : 2008 Certified
Company is a subsidiary of Kalpataru Power Transmission Ltd. (KPTL).
Incorporated on 19th January, 2007, converted into Public Limited
Company 20th April, 2007
8/4/2019 Project on Spices Sibaca
15/72
SSLL provides a strategic network of Agri Logistics Parks across India to
meet the current and future needs of the Indian Agri-Logistics industry.
We bring international standards to India and strive to provide the
best combination of quality, efficiency and value for money.
SSLL is currently operating warehouses at more than 50 locations in
the state of Rajasthan and Gujarat with a total storage capacity of
around 6 Lac MT.
At a time when the country is producing record 250 million tonnes of
food grains, a large quantity is lost during transportation and storage.
An estimated 20% of food grains are destroyed annually owing to poor
storage facilities. Nearly 30% of perishable goods such as vegetables
and fruits are lost for want of cold storage systems and processing
facilities. To meet the current and future logistics needs of the
Indian Commodity industry by building a strategic network of
logistics infrastructure across India and integrating all value links
of the Agri and Non-agri Supply Chain.
The concerns of the agriculture industry became a calling for Shri
Mofatraj Munot (Chairman - Kalpataru Group) and it was his vision that
became the cornerstone of Shree Shubham Logistics Limited (SSLL). Mr.
8/4/2019 Project on Spices Sibaca
16/72
Aditya Bafna, who also serves as a director on the board of NABARD
Consultancy Services (NABCONS) and Mr. Shubhendra Kumar Bafna
have been instrumental in setting up of SSLL. Board of Directors: Mr.
Mofatraj P. Munot - Group Chairman Names Position in Shree
Shubham Logistics Limited (SSLL) Position in (KPTL) Mr. Manish
Mohnot Director Executive Director Mr. Kamal Jain Director President &
CFO Mr. Aditya Bafna Executive Director Mr. Shubhendra Kumar Bafna
Executive Director
Services that Deliver Progress
Our products and services are oriented to encompass the Agri
Commodity Value Chain.
Thus we cover the valuable farmer, trader, banks, processors and all
corporates involved in the value chain. We are positioned to provide
infrastructural, operational, documentation, sourcing, processing,
testing & certification and disposal services to our valued customers on
an all-India level.
Storage & Preservation
Testing & Certification
Collateral Management
8/4/2019 Project on Spices Sibaca
17/72
Commodity Funding
Commodity Procurement, Trading & Exports
Branded Commodities (SPICES AND OTHER FOOD PRODUCT )
Testing & Certification
Living-up to our commitment of
offering and promoting best practicesin end-to-end logistics solutions, we
have formed the Analysis &
Certification Laboratory (ACL). It's an
independent department that offers:
Testing &Certification
Inspection and Sampling Services
Collateral Management Services
Stock Monitoring Services Trade Solution Services
Testing and Grading Services Pre-shipment and Shipment Services
Pest Management and Fumigations Services
Branded Commodities
We have forayed into the Retail
market by launching our very own
Best aroma and colour of the seeds
8/4/2019 Project on Spices Sibaca
18/72
brand of premium quality spices and
pulses. Using the choicest raw
materials, we have made quality and
hygiene the corner stones for our
products. Our products are an inherent
combination of the following features:
BrandedCommodities
Handpicked
Best in-house processing units Smooth texture and pungency
State-of-the-art techniques for
packaging
Medicinal quality in every pinch
Product List
RaiDhania
Dal
Garam Masala
Whole
8/4/2019 Project on Spices Sibaca
19/72
Jeera Poodina Kasoori Methi
Magaj Dhaniya Kokla Kachri
Methi Kumitya Lal MirchPowder
Ker Lal Mirch Jeera Powder
Sauff Khas khas Dhaniya Powder
Sangri Ajowain Singh Dana
Kali
MirchHaldi Powder
8/4/2019 Project on Spices Sibaca
20/72
India to be world spices hub by 2017
8/4/2019 Project on Spices Sibaca
21/72
India will be the worlds largest spices processing hub by 2017, according to V J
Kurien, chairman, Spices Board. Addressing a press conference here he said the
board was making all efforts to achieve the goal within 10 years.
A vision document for the purpose in being prepared by a team of experts in the
Spices Board and will be finalized in 3-4 months.
Currently, the country is handling 44 per cent of worlds total spices business
quantity wise, and 35 per cent in value terms. More than 70 per cent of t he worlds
business in value-added spices products is also handled by India.
Kurien said the emergence of Vietnam as a processing centre would not be a
serious threat to India as the countrys major firms were more quality conscious.
According to the estimates of the board, India had exported value-added spices-
based products worth Rs 2,100 crore in 2006-07 which is a remarkable in history.
The board will launch e-auction of cardamom by next July. Although the
commerce ministry had announced the project almost a year back, this will be set
in motion in the beginning of the next harvesting season. The testing of the new
system is in full-swing, and will be introduced at Bodinaykanoor in Tamil Nadu
and later will be extended to other major cardamom auction centers.
Kurien said during the on-going Five Year Plan, 9 more spices parks would be set
up in various states apart from the first one being set up in Idukki district of Kerala.
Though the exact locations of the parks are yet to be finalized, one each will come
up at Andhra Pradesh and Madhya Pradesh.
Meanwhile, the Spices Board chairman ruled out the possibility of extension of the
export subsidy scheme for black pepper. Domestic prices of the commodity have
appreciated more than 100 per cent during the last 6-7 months, thus severely
affecting exports.
8/4/2019 Project on Spices Sibaca
22/72
Product Classification
No country in the world produces as many kinds of spices as India. At present,
India produces around 2.5 million tones of different spices valued at approximately
3 billion US $, and holds the premier position in the world. Because of the varying
climates - from tropical to sub-tropical to temperate-almost all spices are grown in
this country. In almost all of the 25 states and seven union territories of India, at
least one spice is grown in abundance.There are lots of spices which India exports to all over the world they are namely
Chili, Turmeric, coriander, Methi, Saffron, Piper, and Fennel etc.
Botanical name: Capsicum arutescens Capsicum annum
Family: Solanaceae
Part used: Fruit
Grades: The highly pungent "Sannam" & the mildly pungent 'mundu' chilies are
internationally popular varieties. India also offers 'gospurea chili'. Chilies come as
whole, with or without stalks & with clipped stalks and fresh and dried capsicum
and as powder, oils and oleoresins. Byadgi chili grown in Dharwad district of
Karnataka and Tomato chilies in Warangal, Andhra Pradesh has high colour value.
Description & distribution
Chili is considered the most important contribution from America to the world of
spices. However, today India is the foremost producer and exporter of chili.
Chili is the dried fruit of an annual sub-herb. It is also called as capsicum, paprika,
sweet pepper, red pepper, pimento, cayenne pepper etc depending upon the manner
8/4/2019 Project on Spices Sibaca
23/72
in which it is prepared and used. Chili comes in a wide range of shapes, sizes, color
and degrees of pungency. Some varieties of chili are highly pungent, medium
pungent, others flavorsome but not pungent. Chili is propagates by Seeds. Chili is
grown in several parts of the world as a 'round - the- year crop'. In India the major
producer States are Andhra Pradesh 49% of the total production, Karnataka 13%,
Orissa 8%, Maharashtra 6%, Rajasthan 8%, Tamilnadu 6%, West Bengal 5% &
Gujarat 2%. Harvesting Season: January August Marketing Season: October
June Uses Chili forms an indispensable culinary spice in several parts of the world.
It is also used in beverages and in the preparation of medicines.
Export: Indian chili is mainly exported to USA, Srilanka, Bangladesh, the Middle
East and the Far East.
Botanical name: Curcuma longa
Family: Zingiberaceae
Part used: Rhizome
Grades: The well accepted grades of Indian turmeric are 'Alleppey finger', from
(Kerala), 'Madras finger' and 'Erode finger' from Tamil Nadu, Rajapore and Sangli
turmeric from Maharashtra and Nizamabad bulb from Andhra Pradesh. Turmeric is
also exported in powder form and asoleoresins.32
Description & distribution Turmeric, the dried rhizome of a herbaceous
perennial, is indigenous to Southeast Asia. The primary rhizomes, round in shape
are called 'bulbs', while the thin, long secondary rhizomes are 'fingers'. After
harvest, the rhizomes are cleaned, boiled, dried and polished. Turmeric is closely
related to ginger and is sometimes called Indian saffron due to its brilliant yellow
8/4/2019 Project on Spices Sibaca
24/72
color. The propagation of turmeric is by rhizomes. Turmeric is characterized with a
fragrant, peppery aroma. It is slightly bitter in taste with a musky flavor. Turmeric
is basically a tropical plant. India is the world's largest producer of turmeric and
accounts for nearly 90% of the world production. With its inherent qualities, Indian
turmeric is considered the best in the world. Andhra Pradesh ranks high with 57 %
of the total Indian produce. Tamil Nadu contributes an 18%, Orissa 7%, west
Bengal 4%, Karnataka 4%, 2% each by Gujarat, Maharashtra and Kerala.
Harvesting season: December to March Marketing season: February to May
Botanical name: Coriandrum sativum
Family: Apiaceae
Part used: Leaf & Seed
Grades: India exports coriander in the form of seeds, powder and essential oils.33
8/4/2019 Project on Spices Sibaca
25/72
Description & distribution
Coriander is of the Mediterranean. It is a herb mentioned in the bible. It was used
as a cure for facial spots during the middle age. Coriander is now a major crop
throughout the world.
Coriander is the dried fruit of an annual herb, with several branches and serrated
leaves. The small flowers yield green globular fruits, which turn yellowish brown
when ripe. The seeds are picked when the ripening is in progress and sun-dried.
Coriander is pleasantly aromatic and flavorful. Coriander requires full exposure to
sunlight. Medium to heavy loamy soil, good drainage and well-distributed
moisture are the other pre requisites for coriander. The Indian tropical climate is
suitable for favors the cultivation of this crop. Coriander is a thriving crop in India
with its quality enhanced by the organic cultivation followed by the Indian farmers.
63% of total Indian production comes from Rajasthan, 18% from Madhya Pradesh,
10% from Andhra Pradesh, 4% from Orissa and 2% from Uttar Pradesh. India
contributes about 80% of the global supply.
Harvesting Season: November to April
Marketing Season: January to June
Uses It is used as a condiment in curries; as fresh leaves for garnishing of curries,
and in chutney as an appetiser. It is also used in several beverages, liquors and
perfumes. It is highly valued for its medicinal properties and for its use as a
condiment. Export Indian coriander is mainly exported to the USA, UK, Malaysia,Singapore, Sri Lanka and the Middle East
8/4/2019 Project on Spices Sibaca
26/72
8/4/2019 Project on Spices Sibaca
27/72
Uses
Pepper is used widely in the preparations of various dishes ranging from the south
Indian cuisine to the Western soups. It is used for pickles, seafood salads etc.,
beverages and in the preparation of preservatives.
It has high medicinal value. An ingredient for skin and body care, it acts as an
astringent, lightener and toner, activates blood circulation and stimulates follicles.
Export
Major importers of Indian Pepper are USA, Canada, Russia and European
Countries.
Company intro
8/4/2019 Project on Spices Sibaca
28/72
CONSUMER BUYING BEHAVIOUR PROCESS
What is Consumer Buying Behavior?
Definition of consumer Buying Behavior is the decision processes and acts of people involved in
buying and using products.
Need to understand:
why consumers make the purchases that they make? what factors influence consumer purchases? the changing factors in our society.
Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs
to analyze buying behavior for:
Buyers reactions to a firms marketing strategy has a great impact on the firms success. The marketing concept stresses that a firm should create a Marketing Mix (MM) that
satisfies (gives utility to) customers, therefore need to analyze the what, where, when and
how consumers buy. Marketers can better predict how consumers will respond to marketing strategies.
Return to Contents List
Stages of the Consumer Buying Process
Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual
purchasing is only one stage of the process. Not all decision processes lead to a purchase.
All consumer decisions do not always include all 6 stages, determined by the degree ofcomplexity...discussed next.
The 6 stages are:
http://www.udel.edu/alex/chapt1.html#mixhttp://www.udel.edu/alex/chapt1.html#mixhttp://www.udel.edu/alex/chapt6.html#contentshttp://www.udel.edu/alex/chapt6.html#contentshttp://www.udel.edu/alex/chapt1.html#mix8/4/2019 Project on Spices Sibaca
29/72
1. Problem Recognition(awareness of need)--difference between the desired state and theactual condition. Deficit in assortment of products. Hunger--Food. Hunger stimulates
your need to eat.Can be stimulated by the marketer through product information--did not
know you were deficient? I.E., see a commercial for a new pair of shoes, stimulates your
recognition that you need a new pair of shoes.
2. Information search--o Internal search, memory.o External search if you need more information. Friends and relatives (word of
mouth). Marketer dominated sources; comparison shopping; public sources etc.
3. Evaluation of Alternatives--need to establish criteria for evaluation, features the buyerwants or does not want. Rank/weight alternatives or resume search. May decide that you
want to eat something spicy, indian gets highest rank etc.
4. Purchase decision--Choose buying alternative, includes product, package, store, methodof purchase etc.
5. Purchase--May differ from decision, time lapse between 4 & 5, product availability.Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance,
have you made the right decision. This can be reduced by warranties, after sales communication
etc.After eating an indian meal, may think that really you wanted a Chinese
8/4/2019 Project on Spices Sibaca
30/72
Types of Consumer Buying Behavior
Types of consumer buying behavior are determined by:
Level of Involvement in purchase decision. Importance and intensity of interest in aproduct in a particular situation.
Buyers level of involvement determines why he/she is motivated to seek informationabout a certain products and brands but virtually ignores others.
High involvement purchases--Honda Motorbike, high priced goods, products visible to others,
and the higher the risk the higher the involvement. Types of risk:
Personal risk Social risk Economic risk
The four type of consumer buying behavior are:
8/4/2019 Project on Spices Sibaca
31/72
Routine Response/Programmed Behavior--buying low involvement frequently purchasedlow cost items; need very little search and decision effort; purchased almost
automatically. Examples include soft drinks, snack foods, milk etc.
Limited Decision Making--buying product occasionally. When you need to obtaininformation about unfamiliar brand in a familiar product category, perhaps. Requires a
moderate amount of time for information gathering. Examples include Clothes--know
product class but not the brand.
Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/orinfrequently bought products. High degree of economic/performance/psychological risk.
Examples include cars, homes, computers, education. Spend alot of time seeking
information and deciding.
Information from the companies MM; friends and relatives, store personnel etc. Go
through all six stages of the buying process.
Impulse buying, no conscious planning.
The purchase of the same product does not always elicit the same Buying Behavior.
For example:Going out for dinner for one person may be extensive decision making (for
someone that does not go out often at all), but limited decision making for someone else. The
reason for the dinner, whether it is an anniversary celebration, or a meal with a couple of friends
will also determine the extent of the decision making.
Categories that Effect the Consumer Buying Decision Process
A consumer, making a purchase decision will be affected by the following three factors:
1. Personal2. Psychological3. Social
The marketer must be aware of these factors in order to develop an appropriate MM.
http://www.udel.edu/alex/chapt6.html#personalhttp://www.udel.edu/alex/chapt6.html#psychologicalhttp://www.udel.edu/alex/chapt6.html#socialhttp://www.udel.edu/alex/chapt6.html#socialhttp://www.udel.edu/alex/chapt6.html#psychologicalhttp://www.udel.edu/alex/chapt6.html#personal8/4/2019 Project on Spices Sibaca
32/72
Personal
Unique to a particular person. Demographic Factors. Sex, Race, Age etc.
Who in the family is responsible for the decision making.Young people purchase things for
different reasons than older people.
Psychological factors
Psychological factors include:
Motives--
A motive is an internal energizing force that orients a person's activities toward satisfying
a need or achieving a goal.Actions are effected by a set of motives, not just one. If
marketers can identify motives then they can better develop a marketing mix.MASLOW
hierarchy of needs!!
o Physiologicalo Safetyo Love and Belongingo Esteemo Self Actualization
Need to determine what level of the hierarchy the consumers are at to determine what
motivates their purchases.
Perception--
What do you see?? Perception is the process of selecting, organizing and interpreting
information inputs to produce meaning. IE we chose what info we pay attention to,
organize it and interpret it.Information inputs are the sensations received through sight,
taste, hearing, smell and touch.
8/4/2019 Project on Spices Sibaca
33/72
Selective Exposure-select inputs to be exposed to our awareness. More likely if it is
linked to an event, satisfies current needs, intensity of input changes (sharp price drop).
Selective Distortion-Changing/twisting current received information, inconsistent with
beliefs.
Advertisers that use comparative advertisements (pitching one product against another),
have to be very careful that consumers do not distort the facts and perceive that the
advertisement was for the competitor. A current example...MCI and AT&T...do you ever
get confused?
Selective Retention-Remember inputs that support beliefs, forgets those that
don't.Average supermarket shopper is exposed to 17,000 products in a shopping visit
lasting 30 minutes-60% of purchases are unplanned. Exposed to 1,500 advertisement per
day. Can't be expected to be aware of all these inputs, and certainly will not retain many.
Interpreting information is based on what is already familiar, on knowledge that is stored
in the memory.
Attitudes--
Knowledge and positive and negative feelings about an object or activity-maybe tangible
or intangible, living or non- living.....Drive perceptions
Individual learns attitudes through experience and interaction with other people.
Consumer attitudes toward a firm and its products greatly influence the success or failure
of the firm's marketing strategy.
Personality--
8/4/2019 Project on Spices Sibaca
34/72
all the internal traits and behaviors that make a person unique, uniqueness arrives from a
person's heredity and personal experience. Examples include:
o Workaholismo Compulsivenesso Self confidenceo Friendlinesso Adaptabilityo Ambitiousnesso Dogmatismo
Authoritarianismo Introversiono Extroversiono Aggressivenesso Competitiveness.
Traits effect the way people behave. Marketers try to match the store image to the
perceived image of their customers.
There is a weak association between personality and Buying Behavior, this may be due to
unreliable measures. Nike ads. Consumers buy products that are consistent with their self
concept.
Lifestyles--
Recent US trends in lifestyles are a shift towards personal independence and
individualism and a preference for a healthy, natural lifestyle. Lifestyles are the
consistent patterns people follow in their lives.
EXAMPLE healthy foods for a healthy lifestyle. Sun tan not considered fashionable in
US until 1920's. Now an assault by the American Academy of Dermatology.
8/4/2019 Project on Spices Sibaca
35/72
Social Factors
Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family,
reference groups, social class and culture.
Opinion leaders--
Spokespeople etc. Marketers try to attract opinion leaders...they actually use (pay)
spokespeople to market their products. Michael Jordon (Nike, McDonalds, Gatorade etc.)
Can be risky...Michael Jackson...OJ Simpson...Chevy Chase
Roles and Family Influences--
Role...things you should do based on the expectations of you from your position within a
group.People have many roles.Husband, father, employer/ee. Individuals role are
continuing to change therefore marketers must continue to update information.
Family is the most basic group a person belongs to. Marketers must understand:
o that many family decisions are made by the family unito consumer behavior starts in the family unito family roles and preferences are the model for children's future family (can
reject/alter/etc)
o family buying decisions are a mixture of family interactions and individualdecision making
o family acts an interpreter of social and cultural values for the individual.o
. Reference Groups--
Individual identifies with the group to the extent that he takes on many of the values,
attitudes or behaviors of the group members.
http://www.udel.edu/alex/chapt19.html#spokespersonhttp://www.udel.edu/alex/chapt19.html#spokespersonhttp://www.udel.edu/alex/chapt19.html#spokesperson8/4/2019 Project on Spices Sibaca
36/72
Families, friends, sororities, civic and professional organizations.
Any group that has a positive or negative influence on a persons attitude and
behavior.Membership groups (belong to)Affinity marketing is focused on the desires of
consumers that belong to reference groups. Marketers get the groups to approve the
product and communicate that approval to its members. Credit Cards etc.!!
Aspiration groups (want to belong to)Disassociate groups (do not want to belong
to)Honda, tries to disassociate from the "biker" group.
The degree to which a reference group will affect a purchase decision depends on an
individuals susceptibility to reference group influence and the strength of his/her
involvement with the group.
Social Class--
an open group of individuals who have similar social rank. US is not a classless society.
US criteria; occupation, education, income, wealth, race, ethnic groups and possessions.
Social class influences many aspects of our lives. IE upper middle class Americans prefer
luxury cars Mercedes.
o Upper Americans-upper-upper class, .3%, inherited wealth, aristocratic names.o Lower-upper class, 1.2%, newer social elite, from current professionals and
corporate elite
o Upper-middle class, 12.5%, college graduates, managers and professionalso Middle Americans-middle class, 32%, average pay white collar workers and blue
collar friends
o Working class, 38%, average pay blue collar workerso Lower Americans-lower class, 9%, working, not on welfareo Lower-lower class, 7%, on welfare
Social class determines to some extent, the types, quality, quantity of products that a
person buys or uses.
8/4/2019 Project on Spices Sibaca
37/72
Lower class people tend to stay close to home when shopping, do not engage in much
prepurchase information gathering.Stores project definite class images.
Family, reference groups and social classes are all social influences on consumer
behavior. All operate within a larger culture.
Culture and Sub-culture--
Culture refers to the set of values, ideas, and attitudes that are accepted by a homogenous
group of people and transmitted to the next generation.
Culture also determines what is acceptable with product advertising. Culture determines
what people wear, eat, reside and travel. Cultural values in the US are good health,
education, individualism and freedom. In american culture time scarcity is a growing
problem. IE change in meals. Big impact on international marketing.
Understanding Consumer Buying Behavior offers consumers greater satisfaction
(Utility). We must assume that the company has adopted the Marketing Concept and are
consumer oriented
RESEARCH METHODOLOGY
Problem Statement
8/4/2019 Project on Spices Sibaca
38/72
The project Study aims to conduct drive retail initiatives in Ahmedabad city, and to
measure its impact on sales for Ramdev foods products Pvt. Ltd. The research is
exploratory in nature and quantitative research tools to be used for data collection
& analysis the data will be collected from the survey of the grocery retailers who
sell Ramdev products.
How does Proper Channel Sales management affect the sales?
satisfaction of retailers?
s of the
product?
8/4/2019 Project on Spices Sibaca
39/72
RESEARCH OBJECTIVES
Primary Research Objectives -
To measure availability of the shree subham product portfolio & identifyreasons for non-availability and suggest ways to improve.
Secondary Research Objectives:
To find out the Retailers preference and behavior in terms of selling andpromotion of shree subham products
To identify the influence of dealers in selling of shree subham products over the
end consumers.
Method of Data collection
Method of Data collection -
I opted for a descriptive research type to achieve the above stated research
objectives.
Sampling:
8/4/2019 Project on Spices Sibaca
40/72
Sample Design: The sample design for this project was a non probability Sampling
Design. Under the non probability Sampling Techniques, judgmental Sampling
method is to be implemented.
Sample Size: 75 Grocery Retailers
Sample Unit: Owner of the retail grocery shop
Sampling Method:
Non-Probabilistic Convenience sampling for Respondents Sampling Unit
Sample Geography:
Grocery retailers of jodhpur
Data Collection Source:
Primary data:
Primary Data was collected with the help of survey &
questionnaires.
Secondary data:
The secondary data was collected through journal, magazines
and web portals
Questionnaire Design
8/4/2019 Project on Spices Sibaca
41/72
The questionnaire has been design as per the concept of the questionnaire design.
Following are the objective and sub objectives of the questionnaire:
Objective:
To study the availability of shree subham spices at different retail stores with
reference to particular products.
Sub-objectives:
income.
referential questions used in the questionnaire.
1.5 Data Analysis Methods
SCOPE OF THE RESEARCH
The scope of the research is limited in the following directions.
8/4/2019 Project on Spices Sibaca
42/72
unorganized sector which is a major chunk is kept out of the scope.
basis of availability.
Q-1 Taking into consideration brands of spices available in various grocery
retail stores of jodhpur region ?
8/4/2019 Project on Spices Sibaca
43/72
From the graph above we can interpret product availability of chilli powder,haldi powder and dhanajeera powder under various packaging from 200g to
2 kg with reference to various brands like Ramdev, Everest, Shree subham,
Badshah and local brands in grocery retail stores.
Out of 100 retailers 30 of them were having 200g packing of shree subhamchilli, haldi and dhanajeera, 43 had 500 gms packing of all three products,
35 retailers had 1kg packing, 38 had 2kg packing
In case of everest for various weights 200g, 500g, 1kg , 2kg retailers had28,23,30 and 24. For ramdev it was 32,35,34 and 38. For badshah was
14,10,12 and13. For local brand it was 40,42,33 and 31.
0
5
10
15
20
25
3035
40
45
200g 500g 1kg 2kg
Everest
Ramdev
SHREE SUBHAM
BADSHAH
LOCAL BRAND
8/4/2019 Project on Spices Sibaca
44/72
From the research we may find that there is a huge market of Unorganized and non-Brandedspices particularly in jodhpur market.
8/4/2019 Project on Spices Sibaca
45/72
Q-2 Brands of spices do preferred by consumers
8/4/2019 Project on Spices Sibaca
46/72
From the data above we can see that sh is being preferred by 15% of consumers, Everest waspreferred by 25% where as ramdev was preferred by 24%where badshah was preferred by6%where local brands was preferred by 40%
Q-3 Consumers ratings towards various brands.
EVEREST RAMDEV SHREE SUBHAM
BADSHAH LOCAL BRAND
8/4/2019 Project on Spices Sibaca
47/72
MOST PREFERRED
2nd MOST
PREFERRED
3rd MOST
PREFERRED
4th MOST
PREFERRED
8/4/2019 Project on Spices Sibaca
48/72
EVEREST
MOST PREFERRED
2nd MOST
PREFERRED
3rd MOST
PREFERRED
4th MOST
PREFERRED
LESS PREFERRED
8/4/2019 Project on Spices Sibaca
49/72
RAMDEV
MOST PREFEERED
2nd MOST
PREFERRED
3rd MOST
PREFFERED
4th MOST
PREFFERED
LESS PREFFERED
8/4/2019 Project on Spices Sibaca
50/72
LOCAL BRAND
MOST PREFFERED
2nd PREFERRED
3rd PREFEERED
4th PREFERRED
LESS PREFERRED
8/4/2019 Project on Spices Sibaca
51/72
Q-4 Frequency of ordering.
While analyzing the purchase cycle of the retailers for the above mentioned brands it isobserved that the channel of sales in the field of spices is quite uniform in all the cases of
the above mentioned brands. It can be clearly interpreted that most of the retailers has
weekly purchase cycle followed by fortnightly, Monthly and Quarterly respectively.
0
10
20
30
40
50
60
7 DAYS 15 DAYS 21 DAYS 30 DAYS
8/4/2019 Project on Spices Sibaca
52/72
Q-5 Rating of retailers on the availability.
TURMERIC
HIGHLY SATISFIED
SATISFIED
NEUTRAL
DISSATISFIED
8/4/2019 Project on Spices Sibaca
53/72
Taking into consideration the satisfaction level of Ramdev chili powder is considerably very high
compared to other products of Ramdev the above graph clearly signifies that more that half of the
total target group has greater amount of satisfaction level towards Ramdev chili powder and also
the people not satisfied with Ramdev chili powder are in considerably negligible amount as per the
above graph, weighted average mean is 4.44 which shows that chili powder gives the highest
satisfaction in all products of Ramdev
CHILLI
HIGHLY SATISFIED
SATISFIEDNEUTRAL
DISSATISFIED
8/4/2019 Project on Spices Sibaca
54/72
Ramdev dhanajeera has its graph in quite typical format it is scatter in such a way that most of the
responses of the consumers are equally distributed in highly satisfied, satisfied and neutral and the
group which is not in favorable satisfaction towards the same are in small number. It can be
inferred from the graph that the above product is in stuck in the middle position, weighted average
mean is 4.03 which indicates high satisfaction level.
Fggggggggggggggggggggggggggggh
CORIENDOR
HIGHLY SATISFIED
SATISFIED
NEUTRAL
DISSATISFIED
8/4/2019 Project on Spices Sibaca
55/72
CUMIN SEED
HIGHLY SATISFIED
SATISFIED
NEUTRAL
DISSATISFIED
8/4/2019 Project on Spices Sibaca
56/72
CARDAMOM
HIGHLY SATISFIED
SATISFIED
NEUTRAL
DISSATISFIED
8/4/2019 Project on Spices Sibaca
57/72
6. Rating of shree subham spices on various parameters.
FENUGREEK
HIGHLY SATISFIED
SATISFIED
NEUTRAL
DISSATISFIED
8/4/2019 Project on Spices Sibaca
58/72
Analyzing Ramdev on the parameter of its price it does not hold such a strong position in minds of
people as it is preferred by the people, from the graph it can be interpreted that price of Ramdev is
not as pleasing to people as compared to its quality is, weighted average mean is 2.95 which means
that somehow people are not very happy with price in comparison to other parameters of Ramdev.
PRICE
MOST PREFERRED
2nd MOST
PREFERRED
3rd MOST
PREFERRED
4th MOSTPREFERRED
8/4/2019 Project on Spices Sibaca
59/72
As mentioned above it is clearly seen in the graph that the Quality of Ramdev holds the pleasing
image in the minds of people as around 90% of the people are satisfied with the quality that
Ramdev offers in its product range from chili powder to turmeric powder, weighted average mean
is 4.47 which indicates that people give maximum emphasis on quality.
MOST
PREFERERE
D
62%
2nd MOST
PREFERED
20%
3rd MOST
PREFERED
14%
4th MOST
PREFERRED
4%
QUALITY
8/4/2019 Project on Spices Sibaca
60/72
Ramdev product variants has its graph in quite typical format it is scatter in such a way that most of
the responses of the consumers are equally distributed in highly satisfied, satisfied and neutral and
the group which is not in favorable satisfaction towards the same are in small number. It can be
inferred from the graph that Ramdev has to work on its variants offered to Consumers; weighted
average mean is 3.07 which means there is scope to add some product variants like Salt, Besan etc.
PRODUCT VARIANT
MOST PREFERRED
2nd MOST
PREFERRED
3rd MOST
PREFERRED
4th MOST
PREFERRED
8/4/2019 Project on Spices Sibaca
61/72
Considering the brand name of Ramdev it is clear from the graph as well as the above responses on
different parameters that Ramdev is holding good brand name in minds of consumers due to its
quality and availability offered to the consumers as well as to the retailers. Ramdev has its brand
recall in top of minds of consumers as noticed by the researchers while undergoing the study,
BRAND NAME
MOST PREFERRED
2nd MOST
PREFERRED
3rd MOST
PREFERRED
4th MOST
PREFERRED
8/4/2019 Project on Spices Sibaca
62/72
weighted average mean is 4.11 which indicates association of consumers with brand name is very
strong.
7. No. of Distributors in their area
8. Satisfaction level towards their distributors policies.
Payment Replacement Promotion Credit policy 9. Assistance of Sales person of shree subham spices
8/4/2019 Project on Spices Sibaca
63/72
10. Factor which plays an important role in achieving sales.
8/4/2019 Project on Spices Sibaca
64/72
When asked about the brand name as a important factor affecting the sales of the product it was
noticed that most of the respondents answer tends to yes.
BRAND NAME
YES
NO
QUALITY
YES
NO
8/4/2019 Project on Spices Sibaca
65/72
When asked about the availability of the product playing as an important factor affecting the sales
of the product it was noticed that most of the respondents answer tends to yes, Ramdev in terms
of availability was noticed to be having strong distribution network and a good brand recall.
AVAILIBILITY
YES
NO
8/4/2019 Project on Spices Sibaca
66/72
When asked about the loyalty of the product playing as an important factor affecting the sales of
the product it was noticed that most of the respondents answer tends to yes and it was noticed
PRICE
YES
NO
LOYALTY PACKAGING
YES
NO
8/4/2019 Project on Spices Sibaca
67/72
by the researchers while undergoing the study that loyalty plays very important role in building
up such market share as Ramdev has.
When asked about the price of the product playing as an important factor affecting the sales of the
product it was noticed that most of the respondents an swer tends to no and stressed on the
quality instead of price
When asked about the packaging of the product playing as an important factor affecting the sales of
the product it was noticed that most of the respondents answer tends to no and stressed on the
quality and brand name instead of packaging
PACKAGING
YES
NO
8/4/2019 Project on Spices Sibaca
68/72
8/4/2019 Project on Spices Sibaca
69/72
4. Exchange is the major issue for any retailer as they are lots of problemslike poor quality of goods, out of date of product etc.
5. Shree subham should also increase their product range, like they canlaunch new products like tamarind, Besan and blended spices etc. with
these they can increase their Stock Keeping Unit and by this they will be
having their broad consumer base.
6.Shree subham spices should also focus on PULL strategy along with PUSH
strategy such as contests, discounts and free introductory products.
CONCLUSION
8/4/2019 Project on Spices Sibaca
70/72
annexure
BIBLIOGRAPHY
Books
P.Kotler, K.L. Keller C.R. Kothari Text Book on Research Methodology, Edition 2004 New Age
International (P) Ltd, Publisher
8/4/2019 Project on Spices Sibaca
71/72
Principles of Marketing by Philip Kotler
Website
www.google.co.in
www.wikipedia.com
www. CrnMcxSpice board of indiaMinistry of commerceAPEDADGFTMinistry of commerce
www.karvicomtrade.comdetail report on
production consumption and
seasonal calendar of various
http://www.google.co.in/http://www.google.co.in/http://www.wikipedia.com/http://www.wikipedia.com/http://www.karvicomtrade.com/http://www.karvicomtrade.com/http://www.karvicomtrade.com/http://www.wikipedia.com/http://www.google.co.in/8/4/2019 Project on Spices Sibaca
72/72
agri based commodity 9602974197..kanyeha.. 8261002716