Indian Management Studies Journal

Consumer Behaviour Regarding Branded Milk vis-a-vis Unbranded Milk
Sandeep Singh Virdi* Dyal Bhatnagar** Hardeep Kaur*

* Punjab

School of Management

Studies, Punjabi University, Patiala, Punjab (India)

**

University School of Business Studies. Punjabi University Guru Kashi Campus. Talwandi Saba, Dist. Bathinda. Punjab (India)

Abstract India's dairy market is multi-layered. It's shaped like a pyramid while purchasing with the base dairy products

made up of a vast market for low-cost milk. Consumers

look for freshness, quality, taste and texture, variety and convenience.

How to make milk

and milk products affordable for the large majority with limited purchasing power is essence of the challenge in the present scenario. In contrast, with a constant increase in disposable incomes among the strong middle income class also, the scope of marketing widened. Since the consumers quantum continually strengthen of purchase, varying. are not homogeneous, particularly the consumption of milk has

pattern of milk like etc., is

mode of purchase, Dairy companies,

source of purchase,

brand preference

in Punjab, will have to spend lot of are also advised to to promote and

effort on advertising

and other promotional

activities. Milk companies

their supply chain and other logistics and use intermediaries to the end consumer. profile of the consumers,

make their products available The socio-economic position, educational

viz. income status, occupational of the consumption on the profile

level, age and region are the major determinants

patterns of milk. Hence, the concentrate of consumers, their consumption

of the present study will deliberate

pattern in milk consumption

and its correlates.

During the last three decades, our nation's milk producers have transformed Indian dairying from stagnation to world leadership. During this period and before,

science and technology (S&T) have played a critical role in supporting our farmers' efforts. During the next decade, that role will be further enhanced as we face a number of new challenges. The dairy cooperative movement has been central to the development of dairying in India. The inspiration for this movement was the success of the Khaira District Cooperative Milk Producers Union -- better known as AInu!. Founded in 1946 in response to the exploitation of districts dairy farmers, AInul grew rapidly from its initial base of two societies and two hundred litres of milk. That growth, however, posed a challenge that threatened its existence: flush season production of milk exceeded the demand. Yet the cooperative's success depended on accepting the farmer's milk year round. At that time the advanced dairying nations conserved milk by conversion into powder and butter. This could either be sold as products, or combined with fluid milk to extend the supply during the lean season when demand outstripped production. Experts from the North, pronounced buffalo milk as unsuitable for conversion into powder. It could not be done, they said. This provided the opportunity for the first major Indian scientific and technological breakthrough. The AInul staffled by the then General Manager; solved the problems by producing powder from buffalo milk. It would not be an exaggeration to say that this advance in the technology saved AInul and, with it, ensured the future of the as yet unborn Indian dairy cooperative produced a large number of breakthroughs the development of Indian dairying. movement. Since that time, S&T have that have been critically important to

The Indian dairy industry acquired substantial growth during the 8th Plan, achieving an annual output of over 69 million tonnes of milk. India's milk output during the year 2000-01 was estimated to be 81 million tones. (Source: Government of India, Ministry of Agriculture, Fisheries). burgeoning Department of Animal Husbandry, Dairying & This has not only placed the industry population first in the world, but also dairying has become an and income.

represents sustained growth in the availability

of milk and milk products for the

of the country. Most important,

important secondary source of income for millions of rural families and for millions more, has assumed the most important role in providing employment The per capita availability of the milk has also increased to a level of about 221 g. per day, but this is still very low as compared to developed nations or the world average of 285 g.per day. Government of India is making efforts to increase the productivity of milch animals and thus increase the per capita availability of milk. India's dairy market is multi-layered. It's shaped like a pyramid with the base made up of a vast market for low-cost milk. The bulk of the demand for milk is among the poor in urban areas whose individual requirement is small, may be a

glassful for use as whitener for their tea and coffee. Nevertheless, it adds up to a sizable volume - millions of litres per day. In the major cities lies an immense growth potential for the modem sector. Presently, barely 778 out of 3,700 cities and,towns are served by its milk distribution network, dispensing hygienically packed wholesome, quality pasteurized milk. According to one estimate, the packed milk segment would double in the next five years, giving both strength and volume to the modem sector. The narrow tip at the top is a small but affluent market for western type milk products Of the three A's of marketing - Availability, Acceptability and Affordability, Indian dairying is already endowed with the first two. People in India love to drink milk. Hence, no efforts are needed to make it acceptable. Its availability is not a limitation either, because of the ample scope for increasing milk production, given the prevailing low yields from dairy cattle. It leaves the third vital marketing factor affordability. How to make milk affordable for the large majority with limited purchasing power is essence of the challenge. One practical way is to pack milk in small quantities of 250 ml or less in polythene sachets. Already, the glass bottle for retailing milk has given way to single-use sachets which are more economical. Another viable alternative is to sell small quantities of milk powder in mini-sachets, adequate for two cups of tea or coffee. India, with her sizable dairy industry growing rapidly and on the path of modernization, would have a place in the sun of prosperity for many decades to come. In 2002, India's milk production stood at 81 billion litres of which about 15 per cent of the volume was packaged (Venkatraman, 2002). The one index to the statement is the fact that the projected total milk output over the next 15 years (1995-2010) would exceed 1457.6 million tonnes which is twice the total production of the past 15 years! The National Dairy Development Board has drawn up a Perspective Plan, 2010 for Cooperative Milk Unions, with the objective to raise milk procurement and increase cooperative share in marketing of milk and milk products. 80 Milk Unions have submitted their Perspective Plans to NDDB with an outlay of about Rs. 900 crore. NDDB has approved Plans of about 60 Milk Unions with an investment outlay of Rs. 750 crore. Formalities of entering into agreements / hypothecation of assets are being completed (Source: Government of India, Ministry of Agriculture, Department of Animal Husbandry, Dairying & Fisheries.) India with 204 million cows and 84 million buffaloes has the largest population of cattle in the world. Milk production gives employment to 70 million dairy farmers. In terms of total production, India ranks 1st with a production of 78

million tonnes annually. Although milk production has grown at a fast pace during the last three decades, milk yield per animal is very low in India at around 1.5 litres per day. The main reasons for the low yield are lack of use of scientific practices in milching, inadequate availability veterinary health services. of fodder in all seasons and unavailability of

Over 50% of the milk produced in India is buffalo milk, and 45% is cow milk (Source: The World Dairy Situation 2006 Report - Statistical Data). Buffalo milk has 3.6% protein (Hogberg and Lind), 7.4% fat, 5.5% milk sugar, 0.8% ash and 82.7% water, whereas cow milk has 3.5% protein, 3.7% fat, 4.9% milk sugar, 0.7% ash and 87% water. Fresh pasteurized milk is available in packaged form. However, a large part of milk consumed in India is not pasteurized, and is sold in loose form by vendors. UHT Sterilized milk is also available and is becoming popular.

Consumers

while purchasing

dairy products look for freshness, Products

quality,

taste and texture, variety and convenience. These products are, therefore, manufactured

like Dahi and sweets like

Kheer, Basundi, Rabri are perishable products with a shelf life of less than a day. and sold by local milk and sweet shops. There are several such small shops within the vicinity of residential areas. Consumer loyalty is built by consistent quality, taste and freshness. There are several milk-based sweetmeat shops, which have built a strong brand franchise and have several branches located in various parts of a city.

Gujarat Co-operative Milk Marketing Federation (GCMMF) has also made a beginning in branding of other traditional milk products with the launch of packaged Paneer under the Amul brand. It has also created a new umbrella brand "Amul Mithaee" for a range of "ethnic Indian sweets that are proposed launched. The first new product Amul Mithaee 'Gulabjamun' Western table-spreads such as butter, margarine launched in major Indian markets. and jams are not very This is also popular in India. All India penetration of butter/ margarine is only4%. to be has already been

largely represented by urban areas, where penetration is higher at 9%. In rural areas, butter / margarine have penetrated in 2.1 % of households only. The use of these products in the large metros is higher, with penetration Penetration urban areas. households Per capita consumption even among at 15%. in the 'of cheese is almost nil in rural areas and negligible

the cheese-consuming

is a poor 2.4 kg p.a. as compared

to over 20 kg in USA. The lower

penetration is due to peculiar food habits, relatively expensive products and also non-availability in many parts of the country. Butter, margarine and cheese products are mainly manufactured by organized sector. Similarly, penetration of ghee (ghee is similar to butter oil with strong aroma) is highest in medium sized towns at 37.2% compared to 31.7% in all urban areas and 21.3% in all rural areas. The all India penetration of ghee is 24.1%. In relative terms, penetration of ghee is significantly higher in North and West, which are milk surplus regions. North accounts for 57% of ghee consumption and West for 23%, South & East together account for the balance 20%. A large part of ghee is made at home and by small/cottage industry from milk. The relative share of branded products in this category is very low at around 1-2%. Milk powder and condensed milk have not been able to garner any significant consumer acceptance in India as indicated by a very low 4.7% penetration. The penetration is higher at 8.1% in urban areas and lower at 3.5% in rural areas. Within urban areas, it is relatively higher in medium sized towns at 8.5% compared to 7.7% in large metros. The packaged milk segment is dominated by the dairy cooperatives. Gujarat Co-operative Milk Marketing Federation (GCMMF) is the largest player. All other local dairy cooperatives have their local brands (For e.g. Gokul, Warana in Maharashtra, Saras in Rajasthan, Verka in Punjab, Vijaya in Andhra Pradesh, Aavin in TamilNadu, etc). Over the years, several developments in packaging media have taken place. In the early 80s, plastic pouches replaced the bottles. Plastic pouches made transportation and storage very convenient, besides reducing costs. Milk packed in plastic poucheslbottles have a shelf life of just 1-2 days, that too only if refrigerated. In 1996, Tetra Packs were introduced in India. Dairy co-operatives in Andhra Pradesh, Tamil Nadu, Punjab and Rajasthan sell milk in tetra packs. However, tetra packed milk is costlier by Rs.5-7 per litre as compared to milk packed in plastic pouches. According to Chapter XXII (Dairy Development in India) of Pursuit & Promotion of Science (2000), milk production is, of course, only half of the story. The other half is the sale' of milk and milk products that provides the highest returns to our dairy farmers. Here too, S&T have played an important role in development of products, processes, packaging, handling, transport and storage. Among the major breakthroughs have been: automation of khoa production, moving this process from the backyard to the modern dairy; design of the process technology and equipment for manufacture of peda, gulab jamun, long-life paneer and other Indian milk products; development of continuous lines, including

packaging, for fermented milk products like long life lassi, shrikhand, dahi (yoghurt)and misti doi; process technologies for production of Cheddar, Mozzarella and Emmental cheese as well as a variety of cheese spreads using both cow and buffalo milk; preservation of starter cultures for fermented milk products; process of manufacture of dry mixes for gulab jamun and frozen deserts; user-friendly milk testing kits. As satisfying as the achievements while ensuring accelerate have been, the real challenges lie

ahead. Among the most important are: Ensuring steady growth in productivity that dairying remains concentrated communities; Using advanced of our high potential in our landless, marginal breeding technologies to Indian cattle and buffalo Ensuring increasing and small farmer breeds; Developing reduction

the development

quality control methods that are sensitive to the fact that

our milk comes from large number of small producers;

in losses from endemic and epidemic diseases at costs our farmers

can afford; Expanding the variety, improving the quality and maintaining the relative price of India's dairy products so that they can meet competition from around the world; Ensuring that the growth of the dairy industry contributes to enrichment producers Their of our environment while continuing to benefit low-income without compromising have built our nation's need for milk. a solid foundation. These and other of that

challenges face the current and next generation of scientists and technologists. predecessors The strength foundation is due in large part to the fact that India's dairy farmers have set and technologists. It is the

the research agenda. Beginning with Amul during the 1940s, it was their need that inspired the work of our dairy scientists who follow. evolving needs of India's several million dairy farmers that will inspire those

According to Directorate General of Commercial Intelligence and Statistics (DGCIS), Kolkata, India exported dairy products worth US $ 35 million in 200304. Asian markets are the major destinations for Indian dairy products accounting for nearly one-third of total exports. Major Asian markets for Indian dairy products include UAE, Bangladesh, Nepal, Bhutan, Yemen and Kuwait. Major export items are milk and cream in concentrated form followed by butter and fat. India also exported dairy items like buttermilk / curd, whey, milk and cream not in concentrated form and cheese, albeit negligible volume. Prasad (2006) found in his study that 91.33% of the consumers knew the availability of more than one variety of milk available in the market. He also

established that a large majority of respondents 62.33% said that it is the quality that influences the choice of the brand, whereas a meagre 5.67% expressed the view that it is the factor of easy availability that is responsible for the preference of a brand. He found that a majority (about 82.67%) of the respondents were satisfied with the present brand they were using and only 17.33% though otherwise. He further suggested that prompt and regulat supply, providing value by way of service rendered by agents and avoidance of adulteration are factors that will count in the success or failure of the milk producers. Parekh (2006) in his research established that, of the total milk produced in the country, nearly 46 per cent is consumed as liquid milk (Table 1) and the balance converted into various dairy products, such as ghee, butter, milk powder, ice cream, cheese, condensed milk and for making various kinds of sweetmeats having distinct regional preferences.
Table 1 Milk Utilisation Pattern Year in India

1943* 23.5 100 28.0% 72.0% 58.7% 5.2% 5.0% 3.1% 3.1%

1956 17.8 100 39.2% 60.8% 46.0% 8.8% 4.4% 1.6% 1.6%

2004

Milk Production (million tonne) Milk Utilisation (percentage) Liquid Milk Traditional Products Ghee/Makhan (Butter) Dahi Tyoguri (Ice) Khoya (parttolly desciccoted milk) Chhana and Paneer (unprocessed cottage cheese) Western Products : Milk Powder etc.

91 100 46.0% 50.0% 33.0% 7.0% 7.0% 3.0% 3.0%

* Includes

P~stan

and Bangladesh

Source: Milky Ways, by Dr. J. V. Parekh, http://www.etfoodprocessing.comJOct_Nov_06/ cs01.htm

Dairy products an estimated 54 per cent of India's milk production is converted into products, both Traditional and Western. In this, the share of traditional products is about 50 per cent, accounting in 2001 for a little over 42 million tonne of milk, which yields over 10 million tonne of mithais and other related products per year. The growth projections for their demand in the organised sector are presented in Table 2.

Table 2 Projected Demand for Major Milk Products in the Organised Sector (1988.2009) (Metric Tonne) Product
Ghee Cheese Paneer Shrikhand Rasgulla Gulabjamun

Demand 1988
100,000 4,200 1,000 3,000 1,600 3,000

Projected Demand 2009
200,000 15,000 16,000 5,650 6,000 5,850

Source: Milky Ways. by Dr. J. V. Parekh, http://www.etfoodprocessing.com/Oct_Nov_06/
cs01.htm

Sachan

(2005) discussed the dairy scenario in India and also highlighted

the export potential of this sector. According to him, higher professionalism could be imparted in rearing, milking as also handling during distribution of milk. Lessons could be learnt by individuals and small dairy farms from the cooperative sector. which has managed to impart some amount of professionalism in its operations. Several areas in the dairy industry could be strengthened by induction of state-ofthe-art technologies, transferred from other dairy majors of the world: Operational efficiencies are required, not only to improve yields but also to reduce waste and minimization of losses in fat, protein during milk processing. Bhar and Saxena (2005) developed ARIMA models for forecasting the sales of milk and milk products in the regions of Bokaro and Dhanbad. Based on the data collected from the period from March 2003 to December 2004, they fitted these models and forecasted for the period from January 2005 till June 2005, and concluded that they were valid for forecasting the milk sales and retailer growth of the dairy (with a 95-percentile confidence level), which will help the dairy companies to formulate appropriate marketing and distribution strategies.

aYt
a Yt a Yt a Yt

= 0.488
=

aYt-I

+

et -

0.881

&t-l

a Yt-l + Et - 0.860 &t-l = 0.667 a Yt-I + &t - 0.489 &t-I = - 0.045 a Yt-I + et + 0.845 &t-l
0.220

where Yt is Response (dependent) variable at time t, and &t are error terms that represent the effects of variables not explained by the model. Abreu (2000) has made out that thirty years after Operation Flood, which saw the country awash in milk, another revolution is in the making: the marketing

and distribution of packaged milk, both plain and in flavoured form, aimed at the burgeoning Indian middle class. There is a strong rationale behind this surge. On tonnes in 1998-99. Juxtapose this with the the supply side, milk production in the country has almost doubled from 38.8 million tonnes in 1983-84 to 74 million demand side development: of global trends. Abreu, Robin Acharya and Vasudeo A rising number of working couples, nuclear families,

need for longer shelf life and changing lifestyles; plus the increased consciousness (2000) in his article on dairy products has prominently Joshi, which have been considered quite relevant and

included the following views of Jagdeep Kapoor, R.S. Sodhi, Navin Chopra, B.P. important from this research work point of view. Jagdeep Kapoor, Managing Director, Samsika Consulting said, "What was once an ordinary product has suddenly developed into a full-fledged brand war." Clearly, this is one big fat cow waiting to be milked. The dairy products market is estimated at over Rs. 36,000 crore. So, virtually every big player - from Amul and Vijaya to Nestle and Britannia - is desperately seeking new strategies to break into the market that was till now the comfortable stable of n:gional players. But it is not an easy war. Each player has to work within the four well-defmed affordability, hygiene, shelflife and packaging. parameters of

R.S. Sodhi, General Manager (Marketing), Gujarat Co-operative Milk and Marketing, summed it up succinctly, "the transition from the ordinary milkman to packaged milk is mainly because people do not want any adulteration. They are willing to pay more for quality." Navin Chopra, General Manager (Marketing), Britannia Industries, remarked: "Proving your product is safe and healthy is the biggest hurdle. Once that is done, half the battle is won." B.P. Ac:harya, Managing Director, APDDCF, pointed out, "Variants are the key to increase your marketshare. After the introduction of the low-fat Vijaya brand we have managed to sell one lakh litres in 15 days." Vasudeo Joshi, Director (Research), HSBC Securities, revealed that "in the FMCG sector, milk and milk products are the growth vehicle of the future". Joshi says that consumer habits are fast changing. "The simple packet of milk has become a pot of gold for most companies," he says.

1. 2. 3.

To study the effect of demographic

features on the buying behaviour.

To study the consumer behaviour towards different brands of milk products. To study the satisfaction levels of consumers' vis-a-vis various features of

4.

a particular brand. Preferential attributes and influencing factors which affect consumer-buying behaviour of different brands. For achieving the aforesaid objectives, the following Null Hypotheses were framed: 1. HOt: There is no association between income & use of branded milk (Ref. Table 1). 2. H01: There is no association between profession and use of branded milk (Ref. Table 2). 3. H03: There is no association between the age of a respondent and the choice of a milk product he/she procures (Ref. Table 3). 4. H••: There is no association between the purchase of a particular brand and the factors affecting its choice (Ref. Table 4). 5. Hus: There is no association between income level of the respondents and. the factors affecting the consumer buying behaviour (Ref. Table 5). 6. H06: There is no association between Professions of the respondents and the factors affecting the choice of a particular brand (Ref. Table 6). 7. H07: There is no difference in the perception regarding the factors affecting the buying behaviour of consumers of Patiala versus Ludhiana cities (Ref.·Table 9). 8. Hoa: There is no association between age and effectiveness of media (Ref. Table 10). For the purpose of study, a sample of 100 respondents was taken using convenience sampling technique. The sample was taken from 2 cities, Patiala and Ludhiana (50 from each city) and the information was collected through questionnaires from the respondents. The method of scaling was used for studying the buying behaviour of consumers. The data was arranged in Crossed Tables for better understanding of the relationship between different variables. Chi-Square was used comprehensively for analyzing association among various parameters. Also Z-test (one-tailed) was used for comparing consumers' perception in Patiala and Ludhiana cities. The calculated Z-values were compared accordingly. The formula applied was

z=

(PI - pz) ~P(1-P)XO.02

Various hypotheses were tested for their validity and legitimacy. cI> Accepted at 5 % Level of Significance;

<I> <I> ;

Accepted

at 1 % Level of Significance

but Rejected

at 5%

Level of Significance; Rejected at both Levels of Significance. Table 3 indicates the relationship between Income level of the respondents & the use of branded milk. The hypothesis formulated for the purpose was : 'There is no association between income & use of branded milk.' The null hypothesis originally formulated was rejected and hence it can between Income & use of Branded Milk. This be held that there is association

indicates that with the variation in the income level, the tendency to swing between unbranded and branded milk amplifies.
Table 3 Between Income & Use of Branded Milk Use of Branded Yes No
14

Association

Milk TOTAL

Both 2 12 6 8

~ ;.
.J
Q> Q>

Below Rs.I 0,000 Rs.10,00G-15.000 Rs.15,00G-20,000 Above Rs.20,000 TOTAL

16
4

32 28 23 17 100

12 12 5

x
2

e .= .. c

5
4

29

43

28

= 18.58388

~

(For u Table

=
4

6, X

2

=

12.6 at 95% confidence

level and X2

=

16.8 at 99% confidence

level.)

Profession

& Use of Branded

Milk Use of Branded Yes No 35 2
4

Milk TOTAL

Both 22 0 2
4

Home Maker
';j
<II

3 15 7
4

60 17 13 10 100

=xl

.:! • =..

=

c Student Service Businessman TOTAL
= 52.11379

2

29

43

28

~

(For u

=

6. X2

=

12.6 at 95% confidence

level and X2

=

16.8 at 99% confidence

level.)

Table 4 reveals an association between profession and use of branded milk. The test results indicate that the hypothesis 'There is no association between Profession & use of branded milk' has been rejected. Thus, it can be inferred that profession does have a bearing on the choice of branded/unbranded milk. The hypothesis that 'There is no association between the age of a respondent & the choice of a milk product he / she procures' was tested using the data given in Table 5. The chi-square values in this case show a very attentiongrabbing outcome that the hypothesis is accepted at I % level of significance but is rejected at 5% level of significance. The explanation to this result is that association among the variables is very susceptible to shift towards either possibility. Two milk derivatives, i.e., Ice cream & Flavoured milk, in particular are a strong favourite among the 20-30 age cluster, whilst the remaining milk products are equally distributed among various age clusters. This may be the reason for such a susceptible swing.
Table 5 Between the Age & Choice of Milk Product Milk ProductlDerivatives

Association

.;;

= i: = ...• •• ~
1 I I 0 3

i ~ •• ..
= = >
ii: 1 17 2 1 21

~

.:ol

••

Below 20 20-30
a.

0 5

•• = 4 21 4 1 30

';

.. r..:•• •• •• .. .. •• ••
•• •• -=
0 1 3 0 4
U

5

i ~ •• .. •• ~
ll.

=
1

~

.. •• .. -=•• •• •• ...
I 5 I 5 12 0 2

U

U

•• •• ..

5

= -= = >1 2 2 3 8

i:
011

...
~ ~
8 56 22 14 100

0

0 1 2 1 4

<

CllI

30-40 Above 40 TOTAL

5 1 11

1 1 3

1 1 4

x.2 = 42.70631
2

<1><1>

(For u = 27, X = 40.1 at 95% confidence level & X2 = 47.0 at 99% confidence level.) Table 6 indicates the relationship between the purchase of a particular Brand & the factors affecting its choice. The hypothesis formulated for the purpose was 'There is no association between the purchase of a particular Brand & the factors affecting its choice.' Since the null hypothesis has been accepted, it can be said that there is no association between the purchase of a particular Brand & the factors

affecting its choice. The results are confirmed by the graph shown below, which indicates that most of the respondents preferred quality aspect of the milk and further Verka heads the list of brailds, followed by Nestle, for this attribute.
Table 6 Between Brand & Facton Affecting its Choice Brands Verka Nestle 13 3 5 Amul 7 Gopika Vita Harman 3 0 0 1 0 0 0 4 Total 42 IS 14 9 15 3 2 100 Association

~ ~ .c:

'S .c:

~ ~

Reliability

of Quality

15 9

2
1 0 1 1 0 0 5

2
0 1 0 1 0 0 4

Fat ContentlNutrition Better Packaging Low Priced Availability Better Taste Family Status TOTAL

2
6 3 3

...
~
<II <It

•.. ~ ; = ~

2 2
7 0 1 36

2
3 1 1 28

.. •.. =
~ <II
=

2
0 23

"'x2

22.8972 <1>

(For u= 3D, x2 = 43.8 at 95% confidence level & X2 = 50.9 at 99% confidence level.)
Table Income 7 Level & Factors Affecting the Choice of a Brand Income Below Rs.I0,000 Reliability of Quality 14 5 3 Rs.IO,OOD15,000 18 Level Rs.IS,OOD20,000 8 Above Rs.20,000 2 6 3 3 42 15 14 9 15 3 2 100 Total

~ ..:!
.c:

~ .c:

= ~

Fat ContentlNutrition Better Packaging Low Priced Availability Better Taste Family Status TOTAL

2
2 3

2
6 1 4

.! ...

•.. ~ .: •..

2
7 0 1 32

2
0 1 28

2
1 0 17

.. •.. =
<II <It

2
0 23

~ <II

"'x2
=

28.54748 <1>
=

(For u

18, X2

=

28.9 at 95% confidence level & X2

=

34.8 at 99% confidence level.)

Sandeep Singh Virdi et al. "ndian

Management Studies Journal II (2007) 105-125

Factors like taste and f.ily

status were found to be least preferred while deciding

upon a brand. Table 7 indicates the relationship between Income level of the respondents & the factors affecting the Consumer buying behaviour. The hypothesis formulated for the purpose respondents was : 'There is no association between Income level of the & the factors affecting the Consumer buying behaviour'. between Income & the factors affecting the

The null hypothesis originally formulated was accepted and hence it can be held that there is no association Consumer buyin! behaviour. Though the statistical analysis indicates that there is no association between the variables, but a cursory glance on the table reveals that the income groups falling below the range of Rs. 15,000 are more concerned with the quality of the milk procured. Ensuing the respondents Professions Table 8 indicates & the factors the relationship between the profession of affecting the choice of a particular the choice brand. of a

The hypothesis formulated for the purpose was : 'There is no association between of the respondents & the factors affecting particular brand.'
Table 8 Between Profession & Factors Affecting Profession Home Maker Reliability of Quality Student 9 1 Service 7 1 1 1 Business 2 Total Choice of Brand

Association

24
11 10

42
15

... -=.. .
Q>

'C;

Fat Content/Nutrition Better Packaging Low Priced Availability Better Taste Family Status TOTAL

2
2 1 2 1 0

r
3 2 0 1 17

14
9 15 3

.:
IlIl

Q>

4
9 1 1

~ ... ~ .•..

2
1 0 13

• ~
x.2

.. '" •.. =
...
=

2 100

60

10

13.20124 <1>

(For u

= 18, Xl

'= 28.9

at 95% confidence level & Xl

= 34.8 at 99% confidence level.)
on the factors

The chi-square values show that the hypothesis has been accepted which indicates that professions of the respondents have no bearing

affecting the choice of a particular brand. Despite the acceptance of the null hypothesis we can see that home makers are more disposed towards the quality of mille This assertion also conftrms the already stated fact that home makers consider non-branded milk as better quality milk. This belief might have the origin from the fact that the non-branded milk takes far less time to reach them as compared to the branded one.
Table 9 Scale Analysis of Factors Affecting Buying Behaviour Score
Reliability of Quality 395 450 215 435 360 285 150

Mean Score
3.95 4.5 2.15 4.35 3.6 2.85 I.S

Rank
3 I 6 2 4 5 7

Fat ContentlNutrition Better Packaging Low Priced Availability Better Taste Brand Esteem

Scale analysis regarding factors affecting the buying behaviour has been depicted in Table 9 and the corresponding ranks in Table 10. It can be observed that Nutritional Content & Price factor playa major role in affecting the purchase of milk/milk products. The respondents have shown the least preference for the features such as Brand Esteem, Packaging and Taste. Tbisconclusion was reached by the Mean Scores calculated using the Likert Scaling Technique.
Table 10

Rank
Fat ContentlNutrition Low Priced Reliability Availability Better Taste Better Packaging Brand Esteem of Quality 1 2

3
4

5
6 7

The following table, i.e., Table II attempts to verify the hypothesis behaviour
Table 11 Perception Patiala Factors Regarding tbe Factors Cities Patiala Number of Quality Ludbiana P Z Value Affecting tbe Buying Bebaviour of Consumers

that

'There is no difference in the perception regarding the factors affecting the buying of consumers of Patiala versus Ludhiana cities'.

of

versus

Ludbiana

affecting

tbe cboice Reliability

PI 0.52 0.18 0.06 0.04 0.14 0.04 0.02
1

Number

Pz 0.32 0.12 0.22 0.14 0.16 0.02 0.02
1

26 9 3 2 7 2 1
50

16 6 11 7 8 1 1
50

0.42 0.15 0.14 0.09 0.15 0.03 0.02
1

2.8653~ 1.1881<1> -3.2605~ -2.4708<1><1> -0.3960<1> 0.8290<1> 0.0000<1>

Fat ContentlNutrition Better Packaging Low Priced Availability Better Taste Family Status Total

-

The test results indicate that the hypothesis has been rejected in case of quality and packaging factors while the hypothesis has been accepted in the cases of the remaining variables. This shows that consumers' perception of quality and packaging are more concerned with the quality as compared to Ludhiana differs in case city. Whereas in both the cities. For example, in Patiala consumers

consumers' perception does not differ in case of remaining factors. Consumers think in the similar manner in case of nutrition, price, availability, taste etc. in both the cities. The hypothesis that 'There is no association between Age & effectiveness of Media' was tested using the data in Table 12. The chi-square values show that the hypothesis has been accepted which indicates that effectiveness respondents its type. of media has no bearing on age. Despite the acceptance of the null hypothesis we can see that in the age group 20-30 are more influenced by media irrespective of

Ensuing table (Table 13) portrays the preference for the media among the respondents ofPatiala & Ludhiana. list with 38% of the respondents by the dairy proprietors. The electronic media, i.e., Television, heads the favouring it, followed by the Print media, i.e.,

Newspapers and Magazines. These media can be tapped for advertisement purposes Handouts, Mailers & Pamphlets were the least preferred

Table

12 of Media Media

Age and Effectiveness

.. ~
011

»

Cl.

~
N

Q.

011

~
Below 20 20-30 6 20 4 2

Z 0

~ ~

•••

Cl.

=
011 011

~ ~
0 10 3 2

:c
011

~

Q
Q

.••

.. •..
••
::t
0 0 0 0
to

oW

•••

Cl.

U 2 7 2 0

~

.=
0 3 2 I 6

:c Cl. e
Q.,
011

~

••
011

= = =
0 0 0 0

.. ~

oW

.••

.S

~
..J

~
0 0 0 0

=
Q

'; Q.,

=
0

::

011

=

:;
I 0 0

-;

< ~ ~
8

0 0 I 0

15 10 9

56 22 14 100

<

~ ~

30-40 Above 40 TOTAL

32

34

15

11

0

1

0

0

1

'OK = 25.67274<1>

(For u
Table

= 27, X2 = 40.1 at 95% confidence level & X2 = 47.0 at 99% confidence leveL)
13

Media Efficacy Media TV Newspaper Magazine Cable Shop Display Mailers Pamphlets Banners Handouts Wall Painting Total 13 2 9 1 I 3 0 7 Percentage of Respondents 38 26

100

and hence are not recommended. Ensuing table (Table 14) indicates the effect of educational qualifications on the choice of media. The table shows that 66.7% of the Ph.D. respondents the inclination towards reading them also goes up. read newspapers. In case of Newspapers & Magazines, as the education level increases, But reverse is the case in

Table 14 Educational Qualifications and Media Media
100

•• os

Q, Q,

~
Matrie 4
(50%)

•• z
2 1

'" ~

'N os till os

•• =

>. os Q.

till

•• ::ci
u
2
(25%) os

'" is
Q,

•.. '"

~

e .c:
00

•• ::;
-

••

•• '" := •• =
100

-=

Q,

g"

S os

1

-

-

==

=

"l:l

-==
'"

.5

.; ==
g"

os

-

-

=

=

os

S

~

0 8

~ ~

-

(25%)

.2

5
S 0' S

•• ...
=
=

'" =

10+2

6
(60%)

2

-

-

10

(10%)

10%) (20%)

Graduate

13
(34.2 %)

11

13
%)

I
(2.6 %)

-

-

-

38

(29%) (34.2

.2
os
"l:l

'iil

-=
...

Post Graduate

6
(14.6 %)

18

11
%)

3
(7.3 %) -

I
(2.4 %) -

-

I
(2.4 %)

-

I
(2.4 %)

41

(44%) (26.8

Ph.D.

-

2
(66.7 %)

1
(33/3 %) 26

-

-

-

-

-

3

TOTAL

29

34

8

1

0

0

1

0

1

100

Television

& Cable channels,

where the interest decreases

as education

level

increases. Only post-graduates showed interest in Banners & Wall Paintings, even though it was a measly 2.4%.

The analysis revealed that there is a strong association between Income & use of Branded Milk, which means that with the variation in income levels the choice for branded / unbranded milk also varies. It was inferred that there is no association between the purchase of a particular Brand & the factors affecting its choice, thereby meaning that while choosing a brand the consumer does not of media for a on the consider factors like packaging, price, nutrition, taste etc. Effectiveness particular media. It was construed that profession

has no bearing on age, that is, age does not affect a consumer's preference does have a bearing

choice of branded / unbranded milk. There is no association between Income & the

factors affecting the Consumer buying beh~viour, thus, leading to the conclusion that Income level does not affect consumers' choice regarding quality, packaging, price etc. Profession of a respondent has no bearing on the factors affecting the choice of a particular brand. There is no statistically conclusive evidence that there is any association between the age of a respondent and the choice of a milk product he / she procures as the hypothesis is accepted at I % level of significance but is rejected at 5% level of significance. In this case also the statistical results were not strong enough to conclude that there is any association between the Income level of a respondent & the choice of a milk product he / she consumes as here also the hypothesis is accepted at I % level of significance but is rejected at 5% level of significance. Therefore, meaning that association among· the variables is very prone to shift towards either horizon. The test results indicate that the hypothesis has been rejected in case of quality and packaging factors while the hypothesis has been accepted in the cases of the remaining variables which implies that consumers' opinion in Patiala differ from Ludhiana's packaging aspect. consumers regarding the quality and

As it was found that income and profession

does affect the choice of

branded or unbranded milk, marketers can target particular income and profession groups for promoting their brands. Awfully it was seen that factors like packaging, price, nutrition, taste etc. do not affect choice of a particular brand. Though it is by and large the housewife who plays a role in brand decision, but sometimes the male members do playa role and hence the marketers are advised to focus on the entire family. Also, due to progression in technology, several varieties of milk are available in the market such as whole milk, skimmed milk, toned milk etc. Again, there is a strong felt need for the marketing managers to dwell on creating a high degree of awareness among the customers regarding their product range. So, marketers should search for factors that do affect the choice of a brand and focus their promotion strategies and investment on these newly revealed of factors. Customers are more apprehensive regarding the quality and packaging

the milk in Patiala district rather than in Ludhiana district and this fact should be kept in mind while framing strategies for retaining customers choosing a media, a marketer can rely on TV.and newspapers in Patiala. While for reaching his

customers and further age of the target customer should not be a deciding factor in the choice of media. Dairy companies, particularly in Punjab, will have to spend lot of effort on

advertising and other promotional activities. Milk companies are also advised to strengthen their supply chain and other logistics and use intermediaries to promote and make their products available to the end consumer.

References Abreu, Robin (2000), http://www.india-today.com/itoday/20000710Ibusiness.html Bhanj and Tripathi (2004), "Strategic Intervention through Dairying for Rural Development", Journal of Rural Development, Oct.-Dec., pp. 84-97. Bhar, Chandan;·and Saxena, Amit (2005), "Forecasting of Milk Sales and Retailer Growth of a Dairy using Statistical Technique", Synthesis - The Journal of BLS Institute of Management, Vol. 3, No.1, July - Dec., pp. 29-39. Chapter XXII (Dairy Development in India), Pursuit & Promotion of Science, http:// www.indiadairy.com/news_next.html#amul. (2000). Gupta, S.C. (2004), Fundamentals of Statistics, Himalaya Publishing House, New Delhi. Gupta, S.P. (2005), Statistical Methods, Sultan Chand & Sons, New Delhi. Kothari, C.R. (2000), Research Methodology - Methods and Techniques, 2nd Ed., Wishwa Parkashan. Kubendran, V.; and Vanniarajan, T. (2005), "Comparative Analysis of Rural and Urban Consumers on Milk Consumption", Indian Journal of Marketing, December, pp. 27-30. Long G. Schiffinan; and Leslie Lazar Kanuk (1999), Consumer Behaviour, Prentice-Hall of India Pvt. Ltd., New Delhi. Oburai, Prathap; and Baker, J Michael (2005), "International Marketing Strategies in India: An Application of Mixed Methods of Investigation", Vikalpa, Vol. 30, No.4, Oct. - Dec., pp. 11- 24. Parekh, 1. V. (2006), "Milky Ways", Times Food Processing Journal, Oct. - Nov. Prasad, M. V. Rama (2006), "Dairy Products: Consumer Preferences - A Limited Survey of Vishakhapatnam", Journal of Marketing & Communication, Vol. 2, Iss. 2, Sep. - Dec., pp. 63-71. Radhakumari, C. (2005), "CARD: An e-government initiative of Andhra Pradesh - A Case Study from the Customer's Perspective", Fortune - Journal of International Management, Vol. 2, No.2, July - December, pp. 89-122. Sachan, Dharmendra (2005), "Fresh Fruits, Vegetables and Dairy Products: India's Potential for Exports to other Asian Countries", Research Brief No. 89, January, http://www.indiadairy.com/ind_marketing_quality.htmi. Saunders, Mark; Lewis, Philip; and Thornhill, Adrian (2004), Research Methodsjor Business Students, Pearson Education Pvt. Ltd., Delhi.

Sharma, J.K. (2005), Business Statistics, Pearson Education Pvt. Ltd., Delhi. Sharma, Prabhakar; and Jogelkar, P.V.N. (2005), "Marketing of Milk - An Opinion Survey of Consumer Perception", Indian Journal of Marketing, 32 (34), March-April, pp. 10-27. Sheth, Jagdish (2004), "Making India Globally Competitive", Vikalpa, Vol. 29, No.4, Oct.Dec., pp. 1-10. Venkatraman, Latha (2002), "Call for Strategic Marketing of Milk", Business Line, Jan. 23. Websites and URLS Referred Abreu, Robin (2000), "Dairy Products : Locking Horns", India Today, July 10, http://www.india-today.com/itoday/20000710Ibusiness.html Hogberg, Mikaela Stahl and Lind, Ole (2003); "Buffalo Milk Production", Chapter 5: Milk Production of the Buffalo; www.milkproduction.com http://dahd.nic.in!dairyplan.htm http://www.etfoodprocessing.com/Oct_Nov_06/csOI.htm http://www.business-today.comlbtoday/20040l18/btsubscription.html www.nestleindia.org www.amul.com www.cephamindia.com www.vitamilk.com http://milkfed.nic.in!verka.htm World Dairy Situation Report - Statistical Data (2006); http://indairyasso.org/world _dairy%20Jeport2006.htm

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