04-07-2014, 12:28 PM
A STUDY ON CONSUMER’S BEHAVIOUR AND PERCEPTION TOWARDS NANDINI BRAND IN COMPARE WITH OTHER COMPETITOR’S BRAND
A STUDY ON CONSUMER’S BEHAVIOUR AND PERCEPTION.docx (Size: 734.54 KB / Downloads: 15)
INTRODUCTION
The consumer behaviour is defined as the behaviour that the consumer display in searching for purchasing, using, evaluating and disposing of product and services that they expect will satisfy their needs. Consumer behaviour focuses on how individuals make decision to spend their available resources (time, money, effort) on consumption related items. This includes what they buy, why they buy it, when they buy it and where they buy it, how often they buy it, how often they use it, how they evaluate it after the purchase and the impact of such evaluation on future and how they dispose of it.
In another words, consumer behaviour can be defined as the behaviour of individuals in regards to acquiring, using and disposing of products, services, ideas or experiences. Consumer behaviour also includes the acquisition and the use of information. Thus, communication with the consumers and receiving feedback for them is a crucial part of consumer behaviour which is a great interest of marketers.
Impact of celebrity endorsements on buying behavior
Gone those days where brands were limited and their tag lines were enough for the publicity, for e.g. “Thanda matlab coca- cola” this tag line of coca cola helped a lot in terms of profit maximization and brand building. As the time passes a cut throat competition is taking place and everyone is trying to put their product superior than their competitors. For this, they have endorsed the celebrity in advertisement to make their product popular as well as unique.
The use of a celebrity in an advertisement is like the bridge between the producer and the consumer. For targeting the customers, they select the celebrity as per their product’s demand for e.g. life insurance companies for targeting the older customers endorses the celebrity which are more than 60 years and for the soft drinks and juices they endorses young celebrities.
The personality and credibility of an endorser plays a very important role for promoting the product because it directly reflects the product’s quality and reliability. For e.g. Cement companies always endorses the powerful and strong celebrity like sunny deol, dara singh, Amitabh bachan etc. There are many reasons for celebrity endorsement by companies but the most important is that through endorser’s high appeal and proper message in the advertisement they are able to segregate their targeted customers easily.
COMPANY PROFILE
Today India is the world’s largest milk producer which overtook US in 1998 which accounts for 17% of the global output. According to the research firm CLSA, milk is the country’s biggest agricultural produce, contributing 22% to agricultural GDP. The annual growth rate of milk production in India is 5% to 6%, against the world at 2%. This rapid growth was largely credited to the contribution by dairy co-operatives, under the Operation Flood (OF) Project, assisted by many multi- lateral agencies, including the European Union, the World Bank, FAO and WFP (World Food Program).
National Dairy Development Board (NDDB) lays down the rules and regulations to be followed by the various co-operative milk societies. AMUL (Anand Milk Union Limited) was a pioneer in starting a co-operative milk producer’s society in 1946 in Gujarat and thereafter many co-operative societies were started. In 1975 the World Bank gave a credit of Rs.78 Crores for starting another co-operative society. An overwhelming 85% of the over Rs 2,00,000 crore dairy sector, which sustains about 80 million families across rural India, falls under the unorganized sector. The rest includes private dairies, co-operative societies and government dairies.
Company at a glance
Kolar-Chikkaballapura District Co-operative Milk Producers Union is registered under Co-operative Societies act after bifurcation from Bangalore District Co-operative Milk Producers Union on 23/03/1987. Dairy development activity in the district was initiated during the year 1975 under IDA assistance as a part of Kolar Milk Union Limited (KOMUL). Subsequently the district was bifurcated from the operational area of KCMUL to form a separate Milk union which effected from 01-04-1987. The area of operation is restricted to Kolar and Chikkaballapura Districts having 2919 villages of 11 revenue Taluks. KCMUL is certified for ISO 9001-2000 for quality management and Food Safety Systems..
The Kolar union has a Milk processing plant at Kolar with a handling capacity of 2,50,000 liters per day and three chilling centers at Chintamani, Gowribidnur and Sadali With handling capacity of 1,00,000 liters per day respectively. At Kolar, the dairy is manufacturing Butter, Ghee, Peda, Curd, Cheese, Masala Butter Milk, AMUL masti. UHT Milk in addition with pasteurized toned Milk and full cream Milk. UHT Milk is being sold under the brand name
DAIRY CO-OPERATION SOCIETIES [DCS]
Dairy Co-operative society is a basic organization unit functioning at the village level that is organized on the co-operative principles. All milk cattle owners are eligible to become members of the dairy co-operative societies. The DCS functions daily and also acts as marketing outlet for the milk procured in the village. KCMUL comprises of 11 Taluks with a total of 5309 revenue villages and 1732 Dairy co-operative societies out of which 79 are Women Dairy Co-operative Societies. There are more than 3 lakh members registered in the society in which only 84,639 members are supplying milk to the society from both Kolar and Chikkaballapura district and the rest are sleeping members. These members are divided into various categories like
MILK FEDERATION
The Karnataka Co-operative Milk producers Federation Ltd. came into existence on 01-05-1984, by federating the milk unions in the state and thus forming the state level apex organization. The federation is implementing the project activities and the surplus milk products are converted to produce and supply centralized inputs. The main responsibility of KMF is to co-ordinate the activities between the unions and also to develop the market by increasing the milk production. The federation will manage the surplus and deficiency of Liquid milk among the member milk unions. However, the federation organizes marketing of produced products. The major quantity of the procured milk is sold as liquid milk and the rest will be used for the production of other goods like Butter, Ghee, Peda, Flavoured milk, Burfi, Paneer, Cheese, Khoa, Jamoon Mix, Jamoons, Mysorepak, Badam powder, UHT milk and Ice-creams. The federation organizes marketing of liquid milk and products outside the state. Excellence in quality is maintained to lay a solid foundation for widespread acceptance of “Nandini Milk Products”.
AMUL MASTI DAHI
Recently Kolar dairy was taken up the production of “AMUL Masti-Dahi” in polythene cups of units of 200gms and 400gms. The Milk is used for “Masti-Dahi” preparation consists of 4.7% of fat and 11% of SNF added with lactic stator culture. Gujarat Co-operative Milk Marketing Federation (G.C.M.M.F) is marketing this product.
KOMUL had set high standards for its products and customer services, its prior reliance on manual operations made it difficult to keep up with surging demand. In designing the “Mega Dairy”, Komul looked towards an automated system that would allow it to maintain consistent in quality production of each product. Energy and power is the major requirements which is used effectively and controlled properly all over the plant. Employees are given training effectively to use the new automated systems and to update the valuable management information which is collected from the respective departments.
Mega Dairy has a capacity to process 8.5 lakh litres of Milk per day. This Dairy has been built by investing Rs.35.70crores obtained as a term loan from National Dairy Development Board. At present the mega dairy is working with the concept of “State-of-the-art” with the help of available technology where the Union has the ability to manufacture Milk and milk products to world-class standards which ultimately helps the consumers at the end. Milk and Milk products now reaches the market faster, at a higher quality and with a longer shelf life
FACILITIES PROVIDED TO EMPLOYEES OF KOMUL
Training is provided to all officers and employees in their respective fields, conducted at KMF and NDDB Erode/Gujarat, etc. The main aim of giving training is to gain knowledge and experience in their work, which is helpful to the employees and to the organization.
Canteen facilities are provided at very less rate ( meal @ Rs. 8 for the employers and the labourers and Rs.15 for the visitors)
Conveyance allowance is given to all employees.
Shift allowance is provided to the employees who work in shifts in respective places.
Salary of Rs. 180 is paid to the contract labourers on daily basis.
The following leave facilities are provided:
30 days earned leave (EL) in a year.
15 days casual leave in a year.
Every month second Saturday is holiday for the employees.
METHODOLOGY
The present study is related to understand the consumer’s behavior and perception towards Nandini brand in Kolar city. In marketing consumer behavior is an important segment of the research. The behavior of the consumer will be a strong data for the decision makers to strategize their marketing. So it acts as a resource tool for decision making. Consumer buys only those products which they think will satisfy their needs. So knowledge of consumer behavior and taste is important factor which plays a vital role in the creation of marketing strategies. The effectiveness of any marketing efforts is, therefore, closely related to the extent to which such actions are based on correct and detailed understanding of the consumer behavior. The study of consumer behavior towards Nandini milk tells us the factors that the consumers consider while buying the milk
PROBLEM IDENTIFICATION
In today’s world consumer’s behavior will be affected by many factors. Consumers go for only those products which suit their needs. Demand for essential commodity is always high. Milk is an essential commodity and there is no particular market segment, it is consumed by all. Consumers buy milk only when it satisfies them. If the consumers are not satisfy by the milk that they consumed they will adopt different brands of milk. Consumers are not the only person whose behavior will lead success of the company.
In KMU problem is that consumers are adopting only Nandini Milk and dealers are not showing the interest in selling the other brands. Consumers and dealers have bad perception towards other brands... Many people used to prefer Nandini milk as their daily consumption milk now these people are not able to adopt different brand and milk dealers are not able gain concentration from consumers, pushing to sell other brands of milk which tells that there are many factors which affect on consumer behavior. So the study was made to know the consumer’s behavior and perception towards Nandini brand in comparison with others competitor’s brand. As milk is consumed by all, the adoption of different brand by one member in family will cause to adopt the same brand in the entire family. Nandini milk agents are getting high commission as compared to other brand. The commission paid by the KMU to its milk distributers is very high so that the distributers are not interested to sell the milk of other brands.
DATA ANALYSIS
Consumers and their behavior is an important dynamic for any business to understand if it wishes to succeed. Consumers increasingly exert influence on businesses through their buying behavior. Understanding consumer behavior is therefore imperative as it informs businesses on how to plan their marketing activities and sustain themselves as commercially viable and useful entities
CONCLUSION
Based on the study of Kolar Milk Union and the survey which is conducted on consumer’s behavior and perception I hear by conclude with the following observation. The company has to increase sales promotional activity by enhancing advertisement in television and news paper. The company needs to look for quality improvements with regards to smell and spoilage rate so that they can compete with other brands. Retailers are demanding high commission, hence KMU should provide commission which satisfies the dealers and creates enthusiasm in sale of more no of Nandini milk packets.
The survey tells that the availability of Nandini milk in time is not adequate. By providing more door delivery to consumers KMU should make ensure that Nandini milk is available in time. The union should make necessary steps to availability of milk in all the places. It is very help full to the customers in time saving.