A project report on detergent industry

“A STUDY ON CONSUMER PREFERENCE TOWARDS MILKA WONDER

CAKE IN THE DIST.OF ERODE”

A project report submitted in partial fulfillment of the requirement for the

award of the degree of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED

BY

P.GOWTHAMAMOORTHY

(35080190)

UNDER THE GUIDANCE OF

Ms.NISHA ASHOKAN (Assistant Professor)

DEPARTMENT OF BUSINESS ADMINISTRATION

SRM SCHOOL OF MANAGEMENT

KATTANKULATHUR,

CHENNAI – 603 203.

CERTIFICATE This is to certify that the project entitled “A STUDY ON CONSUMER

PREFERENCE TOWARDS MILKA WONDER CAKE , IN THE DIST.OF

ERODE” submitted to SRM School Of Management in partial fulfillment of the

requirement for the award of the Degree of Master of Business Administration, is a

record of the original research work done by

P.GOWTHAMAMOORTHY(35080190) during the period of his/her study in the

Department of Business Administration, SRM School Of Management, Chennai

under my supervision and guidance and that the project has not formed the basis for

the award of any degree/ associate ship/fellowship of other similar title to any

candidate of any university.

ATTESTED CERTIFIED

_______________________ ________________________

Dean Guide

(Dr. Jayshree Suresh) (Ms.NISHA ASHOKAN)

Vivo-Voce held on External

Examiner

DECLARATION I P.GOWTHAMAMOORTHY(35080190), hereby declare that the project

entitled “A STUDY ON CONSUMER PREFERENCE TOWARDS MILKA

WONDER CAKE, IN THE DIST.OF ERODE” submitted to SRM School Of

Management in partial fulfillment of the requirement for the award of the Degree of

Master of Business Administration, is a record of the original research work done by

me under the supervision and guidance of Ms.NISHAASHOKAN, Head General

Management, Department of Business Administration , SRM School Of

Management, Chennai and that it has not formed the basis for the award of any

degree/ associate ship/fellowship of other similar title to any candidate of any

university.

Signature of the candidate

ACKNOWLEDGEMENT I hereby take this opportunity to express my heartfelt thanks to T.R.

PACHAMUTHU, B.Sc., M.I.E, Founder & Chairman, SRM Group of Educational

Institution, Chennai.

Dr. JAYSHREE SURESH, DEAN OF SRM SCHOOL OF

MANAGEMENT gave her kind permission to do this project.

Ms.NISHA ASHOKAN, Assistant Professor, for giving me valuable

suggestions and corrections without his support this report would have not been

completed successfully.

I extend my heartfelt thanks to MR. A.RAJA, MANAGING

DIRECTOR,NEW HOPE FOOD INDUSTRIES (P) LTD.,ERODE. who had

given me the necessary guidance and support while doing my project work in the

company. I also thank all staff members who have helped me to be on the right track

and to build a deeper understanding on the topic.

LIST OF CONTENTS

CHAPTER PARTICULARS PAGE NO. 1 Bakery industry in India 1 2 Profile 3

2.1 Company profile 3 2.2 Product profile 4

3 Objectives of study 6 3.1 Need for study 6 3.2 Objectives of study 6 3.3 Scope of study 7

4 Research methodology 8 4.1 Research design 8 4.2 Sampling design and no. of samples 8 4.3 Data collection methods 9

4.3.1 Primary data 9 4.3.2 Secondary data 9

4.4 Questionnaire design 9 4.5 Statistical tools used 10 4.6 Limitations of study 11

5 Data analysis 12 5.1 Interpretation of data 12 5.2 Statistical analysis 39

6 Summary of findings 41 7 Suggestions 42 Conclusion 44 Bibliography 45 Appendix 46 Questionnaire 46 Brochure 51

LIST OF TABLES

TABLE NO. PARTICULARS

PAGE NO.

1 Milka Wonder Cake Users- Age Wise 12

2 Milka Wonder Cake Users- Sex Wise 13

3 Milka Wonder Cake- Educational Qualification Wise 14

4 Milka Wonder cake Users- Occupation Wise 15

5 Wonder Cake Users- Marital Status Wise 16

6 Wonder Cake Users- Size Of The Family Wise 17

7 Milka Wondercake Users – Income Wise 18

8 User Wise Classification Of Wonder Cake 19

9 Occasions of Using Wonder Cake 20

10 Brand Awareness 21

11 Reason for Brand Preference 22

12 Stimulating Factor Which/Who Stimulates You To Prefer The Brand 23

13 Frequent Use of Wonder Cake- Among Regular Users 24

14 Users Wise Classification Of Milka Wonder Cake 25

15 Consumers Opinion about Price 26

16 Consumers Opinion about Taste 27

17 Consumers Opinion about Self Life 28

18 Consumers Opinion about Packaging 29

19 Consumers Opinion about Availability 30

20 Consumers Preference over Variety of Milka Wonder Cake 31

21 Factors Influence Alternative Choice 32

22 Alternative brand choice 33

23 Consumers Opinion About Improvements In Milka 34

24 Consumers Opinion about Various Improvements In Milka 35

25 Consumers Who Are Selecting a Specific Brand 36

26 Consumers Attending Media for Milka Advertisement 37

27 Effectiveness of Media for Milka Advertisement 38

LIST OF FIGURES

FIGURE NO. PARTICULARS

PAGE NO.

1 Milka Wonder Cake Users- Age Wise 12

2 Milka Wonder Cake Users- Sex Wise 13

3 Milka Wonder Cake- Educational Qualification Wise 14

4 Milka Wonder cake Users- Occupation Wise 15

5 Wonder Cake Users- Marital Status Wise 16

6 Wonder Cake Users- Size Of The Family Wise 17

7 Milka Wondercake Users – Income Wise 18

8 Occasions of Using Wonder Cake 20

9 Brand Awareness 21

10 Reason for Brand Preference 22

11 Frequent Use of Wonder Cake- Among Regular Users 24

12 Users Wise Classification Of Milka Wonder Cake 25

13 Consumers Opinion about Price 26

14 Consumers Opinion about Taste 27

15 Consumers Opinion about Self Life 28

16 Consumers Opinion about Packaging 29

17 Consumers Opinion about Availability 30

18 Consumers Preference over Variety of Milka Wonder Cake 31

19 Factors Influence Alternative Choice 32

20 Alternative brand choice 33

21 Consumers Opinion About Improvements In Milka 34

22 Consumers Opinion about Various Improvements In Milka 35

23 Effectiveness of Media for Milka Advertisement 38

CHAPTER 1 INTRODUCTION

Bakery industry in India is the largest of the food industries with an annual

turnover of about Rs. 3000 crores. India is the second largest producer of biscuits after

USA. The biscuit industry in India comprises of organized and unorganised sectors.

Bread and Biscuits form the major baked foods accounting for over 80% of total

bakery products produced in the country. The quantities of bread and biscuits

produced are more or less the same. However, value of biscuits is more than bread.

The industry has traditionally been and largely continues to be in the unorganized

sector contributing over 70% of the total production. Bakery products once considered

as sick man’s diet have now become essential food items of the vast majority of

population. Though bakery industry in India has been in existence since long, real

fillip came only in the later part of 20th century. The contributing factors were

urbanization, resulting in increased demand for ready to eat products at reasonable

costs etc.

Market Potential

The bakery units are unevenly spread among States. These are mainly

concentrated in the States of Maharashtra, West Bengal, Andhra Pradesh, Karnataka

and Uttar Pradesh. Industrially advanced States like Maharashtra and West Bengal

have very Large number of bakery units. The per capita consumption is very high in

industrialized States like Maharashtra and West Bengal. The Biscuits are becoming

quite popular in rural areas as well. Nearly 55% of the biscuits are consumed by rural

sector. The higher consumption of biscuits in rural area could be attributed to its

position as a snack, longer shelf life and better taste which is liked by different cross

sections of population. There is no marketing problem as every shop is a market for

wafer biscuits. Bakery products still remain the cheapest of the processed ready to eat

products in the country. The production of Bakery products has increased from 5.19

lakh tonnes in 1975 to 18.95 lakh tonnes in 1990 recording four-fold increase in 15

years. Among the bakery products, biscuits occupy an important place as they

contribute over 33% of total products processed. Over 79% of the biscuits are

produced by small scale sector consisting of both factory and non-factory units. The

growth rate for bakery products is estimated at an average of 9.8% per annum. The

demand for bakery products will continue to increase in future. The estimated growth

rate of 9.8% is on the lower side considering the present potentiality of bakery

products, particularly in rural areas, where about 70% of the population lives.

Encouraging trends in consumption of bakery products by population of lower and

middle income groups indicate vast scope for consideration of nutritional enrichment

of bakery products.

CHAPTER 2

2.1 COMPANY PROFILE Milka wonder cake has become popular for manufacturing variety of

cakes. It is recognized as one of the leading cake manufacturers’ in India.

The company produces cake in terms of bar cakes, rich plum and roll cake.

All variety of cake is being made from the hygienic and nutritive raw

materials like pure wheat flavors. The cakes produced by the milka wonder

cake are healthy, tasty, hygienic and boosting. It yields much calorie too and

that assumes the significance of the best quality products as it increases the

number of customers for the cake day by day.

Milka the leading manufacturing of bakery products in south

captures 70 % market share. The company was established in 1989 from

which the company developed step by step to become one of the best bakery

product manufacturing. New Hope Food Industries (p) Ltd (Milka Wonder

Cake) is one of the units of milka group of companies. The other units of

milka group of companies are pioneer bakeries private ltd (milka bread)

milka nutriments pvt ltd (milka biscuits) all the units are situated in Erode.

About Managing Director

Mr. Raja is not only a business icon but also an active Managing Director. His

Fifteen Years’ experience in the Bakery cake manufacturing field has resulted in the

incorporation of a company named M/S New Hope Food Industries Ltd. in the year

1996. His hi-tech knowledge in cake manufacturing is vast. The rich experience helps

him invent his own formula in manufacturing this cake in the technology and catering.

This cake has become known as “MILKA WONDER CAKE” in its unique brand

name. it stands No.1 product in its taste and best in quality.

An educated man, Mr. Raja takes much interest in developing and catering

technology and skills in producing cakes. The taste of Milka Wonder Cake is a

favourite of everyone. Its name and fame has spread far and wide in India. It is proud

to remember that Mr. Raja, a Business magnet is a recipient of “ARCH OF

EXCELLENCE AWARD 97 " which was awarded in ALL INDIA ACHIEVER'S

CONFERENCE in recognition of his high level business services.

Cake Packaging

Our company specializes in consumers packing suitable to the customer's

requirements because of the staple commodity. There is a separate section which

bestows care upon packaging material used as per customer's requirement and

guidelines. Ours is a prompt packaging system that ensures safety of our cake

products.

Storage & Shipping

Apart from manufacturing unit, our warehouse at Erode is well-known with

hygienic storage facilities for storing and shipping of cake products. The company

maintains proper ventilation and cleanliness with care. With periodical maintenance,

dust free surroundings are preserved. Hygienic work environment with proper food

handling practices are maintained. Strict hygienic regulation including no bare contact

for packing staff and sanitized loading are implemented very carefully. In case of

export packing, our company takes much care in stuffing items and a consolidated

container takes care the safety of our cake products. Our Milka Wonder Cake scales

new heights in future business as much the present as in the past.

2.2 PRODUCT PROFILE

Company: MILKA

Website: www.milkawondercake.com

Milka wonder cake was established on Dec 1996 and the product is being

produced by new hope industries (P) ltd situated in erode. This company

manufactures only cake and its produces three types

Slice cakes

Cup cakes

Rich plumb cakes

Under this slice cake the selling is more .it is being produced in 6 states

Orange 160 Gms.

Chocolate 160 Gms. Vanilla 160 Gms. Fruity 160 Gms. Orange chocolate 160 Gms. Pineapple 160 Gms.

CHAPTER 3

3.1 NEED FOR THE STUDY

I. New hope food industries (p) Ltd., needs to monitor the large force in the marketing environment and learn about changing customer needs

and wants, modern distribution channels, new competitors with their strengths and weakness etc.,

II. Consumers play a vital role in selling and buying the wonder cake products.

III. The consumers are the ultimate product user of the company. IV. To improve the sales, the company should have well understanding

about consumer’s needs and wants.

3.2 OBJECTIVES OF STUDY

1.1.1 PRIMARY OBJECTIVE

The primary objective of the research is to access the new hope food industries

(P) ltd, strengths and weakness in the wonder cake market through understanding the

consumers’ preference towards milka wonder cake.

1.1.2 SECONDARY OBJECTIVE

The objective of the study clearly specified as listed below:

To measures the awareness of various brands among the people.

To ascertain the consumer’s preference towards price, taste, packaging, self life, availability and advertising of milka among users of milka wonder cake.

To identifies the alternative brand in the place of milka wonder cake.

To identifies the nature of complaints from consumers about milka wonder cake.

To measure the effectiveness of advertising and suitable media for advertisement of milka wonder cake.

To compare and evaluate milka wonder cake with other cakes.

3.3 SCOPE OF STUDY

The study helps to increase the advertisement of milka wonder cake.

The study used to improve the quality of milka wonder cake in order to

identify the competitors.

The study helps to increase the taste and reduce the price of milka

wonder cake.

The study used to know consumers to use the wonder cake more

frequently.

CHAPTER 4

RESEARCH METHODOLOGY

Methodology is a plan of action for a research project and explains in detail

how data to be collected and analyzed and presented so that they will provide

meaningful information.

This section is to give enough background on the technical aspects of the

study to allow the reader to appraise the quality of the information obtained.

4.1 RESEARCH DESIGN

The descriptive research is used to identify the usuage of milka wonder cake in erode city. The questionnaire found to be the most suitable type of research instrument to collect the data from the retailers and consumers. As lot of information has to be collected for this study, personnel interview relied upon with a structured questionnaire.

4.2 SAMPLING DESIGN AND NO. OF SAMPLES

4.2.1 Sampling Unit

Who is to be surveyed?

The sampling for this study is any household and retailer who deal with various brands of wonder cake.

4.2.2 Sampling Size

The sample size for the consumer’s survey is 100.

4.2.3 Sampling Method

The quota sampling method selected for consumers. This sampling method used

the principle of stratified random sampling, the researchers begins by constructing

strata. In the consumer survey, compound stratification is used. The whole area in

erode district is stratified into 7 taluks. From each taluk around 13 to15 respondents

are selected in such a way that the sample would represent the age sex classification.

4.2.4 Area of Sampling

Erode city alone is selected to conduct this survey to lack of time and cost involved in collecting the information from various areas.

4.2.5 Period of Survey

The survey is conducting during the period of months from March 14th to May 5th, 2010.

4.3 DATA COLLECTION

Two types of data are collected.

4.3.1 Primary Data

Primary data are collected by conducting direct structured interview by using

questionnaire, it means all respondents are asked the same questions in the same

fashion and they are informed the purpose of the study.

4.3.2 Secondary data

Secondary data’s collects from company’s records, company’s plan, proposal and other reports.

4.4 QUESTIONNAIRE DESIGN

A questionnaire is an assembly of carefully formulated questions, designed to collect facts and opinions from the respondents. It is an important tool of the market researchers’ trade, as it is used to generate the raw data on which the findings were based.

The aim of designing the questionnaire was

To obtains accurate data.

To makes the interview as interesting and stimulating as

possible to the respondent.

To be easily administered.

To facilitates analysis.

This involves the following steps:

Constructing a questionnaire

Arrangement of questionnaire

Presenting the questionnaire

4.5 STATISTICAL TOOLS USED

Analyze the data and interpret the results by using percentage analysis.

4.5.1 Percentage analysis

Percentage refers to a special kind of ratio percentages are used in making

comparison between two or more series of data. Percentages are used to describe

relationships. Percentages also are use to compare the relative terms, the distribution

of two or more series of data.

No. Of respondents

% of respondents = ------------------------------- *100

Total respondents

4.5.2 Chi-Square Test

The chi-square test is one of the simplest and most widely used non-parametric tests in statistical work. The chi-square test was used by karl pearson in the year 1990.

(O-E) 2

Chi-square = ∑ --------------

E

Where,

O refers to the observed frequencies and

E refers to the expected frequencies.

4.6 LIMITATIONS OF STUDY

The project is subject to the following limitations.

i. The study being limited only to erode city may not truly represent the entire population.

ii. Some of the consumers are not cooperative they feel, participating in this survey does not give no benefit to them.

iii. Projection of these results to the entire population may not give the desirable significance results. Since this study only, cover the erode city.

CHAPTER-5

DATA ANALYSIS

5.1 INTERPRETATION OF DATA

TABLE NO. 1

Milka Wonder Cake Users- Age Wise

SOURCE: Primary Data

INFERENCE

All the age group of consumers are prefer milka brand, out of which

the age group of 20-30 is highly contributed than any other age groups.

The above 50 age group users are less attracted by milka brand.

The age group of 30-50 contributes around 26 percentages only.

FIGURE 1

TABLE NO. 2

Milka Wonder Cake Users- Sex Wise

S.No. Age No. of. Respondents Percentage

1 Below 20 13 13

2 20-30 57 57

3 30-50 26 26

4 Above 50 4 4

Total 100 100


INFERENCE

Normally the population of male is more than female in sex wise. Here 74% of

male respondents and 26% of female respondents are using milka. Hence it is

concerned that men are highly attracted than women by the milka brand.

FIGURE 2

S.No. Sex Users of wonder cake Percentage

1 Male 74 74

2 Female 26 26

Total 100 100

TABLE NO. 3

Milka Wonder Cake- Educational Qualification Wise

S.No. Educational qualification No. of. Respondents Percentage 1 Illiterate 13 13

2 Primary school 11 11

3 Secondary school 28 28

4 Graduate 43 43

5 Post graduate 5 5

Total 100 100


INFERENCE

From the above table, it is conclude that is 100% awareness of milka wonder

cake among literate people. Even in the case of illiterate the awareness of milka

wonder cake is 7%.

FIGURE 3

TABLE NO. 4 Milka Wonder cake Users- Occupation Wise

S.No. Occupation No.of. Respondents Percentage

1 Student 29 29

2 Employed 33 33

3 Business 30 30

4 Unemployed 8 8

Total 100 100


INFERENCE

Employed and business peoples are highly attracted by the milka wonder cake

compared with other class of consumers.

FIGURE 4

TABLE NO. 5

Wonder Cake Users- Marital Status Wise

S.No. Marital status No.of. Respondents Percentage

1 Single 54 54


INFERENCE

54% of the wonder cake consumers belong to the category of single and 46%

of the wonder cake consumers come under the category of married.

FIGURE 5

TABLE NO. 6 Wonder Cake Users- Size Of The Family Wise

2 Married 46 46 Total 100 100

S.No. Size of the family No.of. Respondents Percentage

1 Only two 11 11

2 2 to 4 41 41

3 4 to 6 37 37

4 More than 6 11 11

Total 100 100


INFERENCE

37% of the wonder cake consumers belong to the family size category 4 to 6.

41% of the wonder cake consumers come under the category of 2-4 family size.

Hence it is conclude that if the family size becomes large, the possibility of

consuming wonder cake as a food is higher.

FIGURE 6

TABLE NO. 7

Milka Wondercake Users – Income Wise

S.No. Income No. of. Respondents Percentage

1 Below 2500 7 7

2 2500-4500 12 12

3 4500-6500 45 45

4 Above 6500 36 36

Total 100 100


INFERENCE

Milka wonder cake attracted the income wise between 4500-6500 category is

high when compared to other categories. Next to this category, above 6500 category

stands little bit less percentage than the 4500-6500 category.

FIGURE 7

TABLE NO. 8 TABLE 8.1

User Wise Classification Of Wonder Cake


TABLE 8.2

Reason For Not Consuming Wonder Cake

S.No. Classification No.of. Respondents Percentage

1 User 91 91

2 Non-user 9 9

Total 100 100


INFERENCE From the above tables, it is evident that 91% of respondents are using wonder

cake and 9% of respondents are not using wonder cake.

Therefore, new hope food industry should conduct the special survey to explore

the non-users needs and wants. It will be very useful to increase the market share of

new hope food industry as well as wonder cake industry.

TABLE NO. 9 Occasions of Using Wonder Cake

S.No. Occasions No. of. Respondents Percentage

1 During Travelling 21 23

2 Visiting Relative Houses 38 44

3 Regular users 22 23

4 Occasional users 10 10

S.No. Classification No.of. Respondents Percentage

1 I don’t like the taste 6 66.67

2 price is more than others 3 33.33

Total 9 100

Total 91 100


INFERENCE

From the table it is evident that 23% of the consumers are buying wonder

cake during travelling. 44% of the consumers are buying wonder cake when they are

visiting relatives house. 23% consumers are regular users and 10% consumers are

occasional users.

FIGURE 8

TABLE NO. 10 Brand Awareness

S.No. Brands No. of. Respondents Percentage 1 Milka 43 43

2 Amudham 13 13 3 Suriya 10 10 4 Spencers 9 9 5 Honey Food 8 8 6 Modern 4 4 7 Others 13 13

Total 100 100


INFERENCE From that table, it is evident that 13% of consumers are aware of amudham,

43% of consumers are aware of milka wonder cake and only 10% of consumers came

to know about suriya wonder cake. Others contribute around 13%.

FIGURE 9

TABLE NO. 11

Reason for Brand Preference

S.No. Criteria No. of. Respondents Percentage


INFERENCE

40% of consumers preferred their brand due to taste. Here also the

importance of taste is proved.

13% of consumers preferred their brand due to low price, the factor is

self life, which has 6% of consumers.

FIGURE 10

TABLE NO. 12 Stimulating Factor Which/Who Stimulates You To Prefer The Brand

Sex Advertisement Friends/Relatives

Free Gift Self

Shopkeepers recommendation Total

Men 27 15 2 13 17 74 Women 10 6 7 3 26

1 Low price 13 13 2 Taste 40 40 3 Self Life 6 6 4 Attractive Packaging 11 11 5 Availability 16 16 6 Free Gift/Coupons 1 1 7 Freshness 13 13

Total 100 100

Total 37 21 2 20 20 100 % 37 21 2 20 20 100


INFERENCE

37% of consumers preferred their brand in pursuance of advertisements.

Hence the vital role of advertisements in marketing is proved. 20% of consumers

preferred the brand on their own. The suggestion of shop keepers is same as on their

own preference. The suggestion of friends/relatives occupies the fourth place.

Gifts/coupons can stimulate only 21% of consumers. It is to be noted that higher % of

men are influenced than women by shopkeeper.

TABLE NO. 13

Frequent Use of Wonder Cake- Among Regular Users

S.No. Frequency of buying No. of. Respondents Percentage

1 Daily 17 17

2 Once In A Week 16 16

3 Twice A Week 34 34

4 Once In A Month 13 13

5 Twice In A Month 20 20

Total 100 100


INFERENCE

The above table shows that among the regular wonder cake users, 17% of

consumers are buying wonder cake daily. 16% of consumers are buying wonder cake

once in a week and 34% of consumers are buying wonder cake twice a week.

FIGURE 11

TABLE NO. 14 Users Wise Classification Of Milka Wonder Cake

S.No. Classification No. of. Respondents Percentage

1 Milka Users 68 68

2 Milka Non-users 32 32

Total 100 100


INFERENCE The above table shows that among the wonder cake users, 68% are using

milka and the remaining 32% are using other brands. Comparing with the other

brands more number of consumers using milka brand.

FIGURE 12

TABLE NO. 15 Consumers Opinion about Price


S.No. Opinion No. of. Respondents Percentage

1 High 21 31

2 Right 35 51

3 Low 12 18

Total 68 100

INFERENCE

31% of respondents feel that the taste of milka brand is right.

51% of respondents feel that the taste of milka brand is high.

18% of respondents feel that the taste of milka brand is low.

FIGURE 13

TABLE NO. 16

Consumers Opinion about Taste


1 High 32 47


INFERENCE

47% of respondents feel that the taste of milka brand is right.

50% of respondents feel that the taste of milka brand is high.

3% of respondents feel that the taste of milka brand is low.

FIGURE 14

TABLE NO. 17

Consumers Opinion about Self Life

2 Right 34 50

3 Low 2 3

Total 68 100


INFERENCE

26% of respondents feel that the quality of milka brand is right.

57% of respondents feel that the quality of milka brand is high.

17% of respondents feel that the quality of milka brand is low.

FIGURE 15

S.No. Opinion No. of. Respondents Percentage 1 High 18 26 2 Right 39 57 3 Low 11 17

Total 68 100

TABLE NO. 18

Consumers Opinion about Packaging


INFERENCE

49% of respondents feel that the packaging of milka brand is right.

44% of respondents feel that the packaging of milka brand is high.

7% of respondents feel that the packaging of milka brand is low.

FIGURE 16

S.No. Opinion No. of. Respondents Percentage 1 High 33 49

2 Right 30 44

3 Low 5 7

Total 68 100

TABLE NO. 19 Consumers Opinion about Availability

S.No. Opinion No. of. Respondents Percentage 1 High 34 50 2 Right 30 44 3 Low 4 6

Total 68 100


INFERENCE

50% of respondents feel that the availability of milka brand is right.

44% of respondents feel that the availability of milka brand is high.

6% of respondents feel that the availability of milka brand is low.

FIGURE 17

TABLE NO. 20

Consumers Preference over Variety of Milka Wonder Cake S.No. Consumers preference No. of. Respondents Percentage

1 orange 160 Gms 13 19

2 chocolate 160 Gms 16 23

3 vanilla 160 Gms 12 18

4 fruity 160 Gms 10 15

5 orange chocolate 160 Gms 9 13

6 pineapple 160 Gms 8 12

Total 68 100


INFERENCE The different flavours are mentioned above, out of which chocolate flavour

contributes major consumer preference is around 23%.

FIGURE 18

TABLE NO.21 Factors Influence Alternative Choice S.No. Criteria No. of. Respondents Percentage

1 Low price 12 17

2 Taste 7 10

3 Self Life 7 11

4 Attractive Packaging 14 21

5 Availability 19 28

6 Free Gift/Coupons 4 6

7 Advertisement 5 7

Total 68 100


INFERENCE From the table it is evident that 10% customers prefered other brand as an

alternative due to taste. Here also the importance of taste is proving. Like wise, 28%

of consumers prefered due to availability, 7% of consumers prefered due to

advertisement and 21% of consumers prefered attractive packaging.

FIGURE 19

TABLE NO. 22 Alternative brand choice “when milka wonder cake is not available in retail shop”

S.No. Alternative Brands No. of. Respondents Percentage 1 Amudham 16 24

2 Suriya 14 21

3 Spencers 13 19

4 Honey Food 8 11

5 Modern 8 12

6 Others 9 13

Total 68 100


INFERENCE From the table it is evident that 24% of consumers are prefered amudham,

21% prefered suriya, 19% of consumers prefered spencers, 11% of consumers

prefered honey food. Hence it is concluding that amudham and suriya become close

alternative for milka.

FIGURE 20

TABLE NO. 23 Consumers Opinion About Improvements In Milka


INFERENCE From the above table it is evident that 71% of consumers need improvements

in milka and 29% of consumers do not need any improvements in milka.

FIGURE 21


1 Improvements should be made 48 71

2 No need 20 29

Total 68 100

TABLE NO. 24 Consumers Opinion about Various Improvements In Milka

S.No. Criteria No. of. Respondents Percentage 1 Rationalizing the price 15 32

2 In Taste 11 23

3 In Self Life 11 23

4 In Packaging 11 22

Total 48 100


INFERENCE From the table it is evident that 32% of consumers feel that the

price of milka wonder cake should be revised.

23% of customers need improvement in taste and self life and

remaining 22% of consumers need improvement in packaging.

This shows most of the consumers consider the price of milka

wonder cake as high. Hence they want the price should be revised and

improve the taste.

FIGURE 22

TABLE NO. 25 Consumers Who Are Selecting a Specific Brand


1 Brand Selection by themselves 72 72

2 Allows the retail shopkeeper to recommend a brand 28 28

Total 100 100


INFERENCE

72% of consumers select a specific brand of wonder cake without allowing influence of anyone else.

The remaining 28% of consumers do not bother about the brand and ready to buy any brand, which would be recommended by the retail shopkeeper.

TABLE NO. 26 Consumers Attending Media for Milka Advertisement


1 Exposure to milka Advertisement 92 92

2 No exposure to milka Advertisement 8 8

Total 100 100


INFERENCE

From the table, it is evident that 92% of consumers have watched the milka

advertisement and 8% of consumers have not watched the advertisement of

milka.

This shows milka advertisement has captured a place in the minds of most of

respondents.

TABLE NO. 27

Effectiveness of Media for Milka Advertisement

S.No. Classification No.of. Respondents Percentage 1 Tv 28 30

2 Radio 38 41

3 Press 7 8

4 Hoardings 5 5

5 Banners 6 7

6 Wall Painting 5 6

7 Posters 3 3

Total 92 100


INFERENCE

Advertisement through media is very essential to sell wonder cakes especially

through television. Here advertisement through radio contributes around 41%.

FIGURE 23

5.2 STATISTICAL ANALYSIS

Test: CHI-SQUARE TEST

H0-no significant difference between male and female H1-significant difference between male and female Observed frequency table

GENDER Prefer Not Prefer TOTAL Male 40 34 74 Female 15 11 26 TOTAL 55 45 100

Expected frequency table

41 33 7414 12 2655 45 100

Workings

O E (O-E)2 (O-E)2/E 40 41 1 0.024 15 14 1 0.071 34 33 1 0.03 11 12 1 0.083

(O-E) 2

Chi-square = ∑ --------------

E

Where,

O refers to the observed frequencies and

E refers to the expected frequencies.

By using the formula, chi- square(calculated value) = 0.208

Degrees of freedom can be calculated by using the formula,

٧ = (r-1)(c-1) = (2-1)(2-1) = 1

Where,

r refers to no. of observed frequencies

c refers to no. of expected frequencies

From the table, chi-square is given by 3.28

INTERPRETATION

The calculated value of chi-square is less than the table value. The hypothesis (H0) is accepted. Hence there is no significant difference between male and female.

Therefore the usage of wonder cake does not depend on gender.

CHAPTER-6

SUMMARY OF FINDINGS

91% of people are consuming wonder cake and only 9% of people are not consuming.

Among the non-users, 67% of people not liking the taste of wonder cake and

33% of them feel that the price of wonder cake is higher than other food product, which fulfils the same needs.

Among the non-users the percentage of men is higher than that of women.

Wonder cake is consumed well by different age groups of people.

Major wonder cake consumers (45%) income ranges from 3000-5000.

Major wonder cake consumers are employed and business people.

If the family size is large, the probability of consuming wonder cake as a food is higher.

As we have seen in occasional wise, those who are going to visit relative

houses are the major wonder cake users.

Major wonder cake users are using wonder cake at least twice a week.

Advertisements play a major role in persuading people to use wonder cake.

CHAPTER-7

SUGGESTIONS

The proportion of population used to consume wonder cake as a food would

increase in future. Hence there is long run marketing opportunity for new hope food

industries (p) ltd., from the survey conducted among consumers the wonder cake

market can be explained from the following characteristics:

The market is large.

Most of the market is aware of wonder cake.

There is strong potential competition.

Most of the buyers are price sensitive.

Most of the buyers are quality conscious.

Early adopters like wonder cake.

Most of the consumers start buying wonder cake.

New competitors enter into market.

Based on the characteristics of the wonder cake market the researcher should

make recommendations under the product, price, promotion, distribution and market.

Consumers visualize and judge the quality of wonder cake based on their

experience with functional performance (i.e) taste and price of the wonder cake. All

milka users like the taste of milka wonder cake. Hence it is important to maintain the

taste.

New hope food industry should maintain its promotional expenditure

at the same or at a slightly increased level to meet competition.

The company should advertise in a manner to maintain its good

reputation and high awareness.

The advertisement role has been proved as effective in milka wonder

cake sales. Hence the messages should repeat many times which

allows the consumers to receive and compare the messages of various

competitors. Consumers might believe that a heavily advertised brand

must offer “good value” price.

Most of the consumers feel that the price of the milka wonder cake is

high. It is by most of the consumers. Further it seems that a price cut

would not attract new consumers. Hence it is better to have the price

remain as same.

Availability is the crucial factors, which enable the consumers, get the

preferred brand. However milka wonder cake is easily available in the

market still more steps to be taken to meet the increasing demand.

The company can try to attract the non-users of wonder cake.

The company can try to attract the competitor’s consumers to try the

milka wonder cake.

The company can try to get consumers to use the wonder cake more

frequently.

The company can try to enter new market segment like illiterate

peoples.

CONCLUSION

Since the study is confined only to erode district. The same research

should be under taken in other areas, districts, or states.

Research could be under taken to find out the non-users attitude

towards wonder cakes, the non-users likes, dislikes and wants are to be

exploding in order to make them “wonder cake users”.

Most of the consumers have the opinion that the price of milka wonder

cake is high. Hence the research could be doing whether a price cut

attracts new consumers and competitors’ customers also.

BIBLIOGRAPHY “MARKETING MANAGEMENT” – Analysis, Planning, Implementation and Control Philip Kotler, Seventh edition, PHI, NEW DELHI, 1991. “RESEARCH METHODOLGY” - C.R.Kothari, second edition, Wishawa prakashan, New Delhi. “MARKET RESEARCH” - D.D.Sharma, first edition, Sultan chand & sons, New Delhi, 1996. “STATISTICAL METHODS” – S.P.Gupta, twenty seventh edition, Sultan chand & sons, New Delhi, 1995.

“RESEARCH FOR MARKETING DECISION”- Paul E. Greame, Donald S.Tull, General album, fifth edition PHI, New Delhi, 1995. “ANNUAL REPORT” – New hope food industries (P) Ltd., Erode.

APPENDIX A STUDY ON ‘CONSUMER PREFERENCE’ TOWARDS ‘MILKA WONDER

CAKE’ IN THE CITY OF ‘ERODE’ Questionnaire

1) Name :

2) Gender : O male O female

3) Age :

O below 20 O 20-30 O 30-50 O above 50 4) Educational Qualification

O Illiterate O Primary School O Secondary School

O Graduate O Post Graduate

5) Occupation O Student O Employed O Business

O Unemployed

6) Marital Status O Single O Married

7) Mention the Size of the Family O only 2 O 2-4 O 4-6

O more than 6

8) Monthly Income O Below 2500 O 2500-4500 O 4500-6500

O Above 6500

9) Do you have the habit of buying wonder cake? O Yes O No

IF YES, a) When do you buy cake

O During Travelling O Visiting Relative Houses

O Regularly O Occasionally

IF NO b) Mention The Reason For Not Consuming Wonder Cake

O I Don’t Like the Taste

O Price Is More than Other Food

O Other: Specify_________________________

10) For whom are you buying wonder cake? O Children O Father/Mother

O Grand Father/Grand Mother O For All

11) While Buying Wonder Cake, Rank The Following Factors That You Are Looking For

O Price O Taste O Self Life

O Attractive Packaging O availability O Free Gift/Coupons

12) Brand of wonder cake which you are aware of

O Amudham O Milka O Suriya O Spencers O Modern O Honey Food. O Others

13) What is the reason to buy particular brand of wonder cake? O Low Price O Taste O Self Life O Attractive Packaging O Availability O Free Gift/Coupons O Freshness

14) Which/Who influences you to prefer the brand? O Advertisement O Friends/Relatives

O Free Gift/Coupons O Self O Shopkeepers

15) Normally you are buying wonder cake O Daily O Once In A Week O Twice A Week O Once In A Month O Twice In A Month

16) Have you tried Milka wonder cake

O Yes O No

IF YES, a) What is your opinion about Milka wonder cake?

Good Medium Poor Price O O O Taste O O O Self life O O O Packaging O O O Availability O O O IF NO, b) While buying wonder cake, do you ask a particular brand?

O Yes O No (17) IF YES,

Which variety of wonder cake do you like in milka?

O orange 160 Gms O chocolate 160 Gms O vanilla 160 Gms

O fruity 160 Gms O orange chocolate 160 Gms O pineapple 160 Gms

(18) If Milka wonder cake is not available in the market, which one of the following brand you prefer as alternative. O Amutham O Suriya O Spencers O modern O honey food O others (19) State the reason preference of other brand as alternative when milka wonder cake is not available.

O Low Price O Taste O Self Life O Attractive Packaging

O Availability O Free Gift/Coupons O Advertisement (20) Do you think that milka needs any other improvements? O Yes O No (21) If Yes, O Rationalizing the price O Improvement in taste

O Improvement in self life O Improvement in packaging O If any other specify_________________________

(22) Which brand is recommended by the retailer? O Milka O Amutham O Suriya O Spencers O Modern O Honey Food O Others

(23) Do you hear/watch the advertisement of Milka? O Yes O No (24) Mention the media of milka advertisement that you come across O Tv O Radio O Press O Hoardings

O Banners O Wall Painting O Posters If Tv specify the channel_________________________ (25) Rank the advertisements of the following wonder cake.

BRAND RANK Milka Amudham

Suriya Spencers

Honey Food Modern

Others (26) Do you prefer milka wonder cake? O yes O No

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