INTRODUCTION

Marketing is very innovative field. Here nothing can be assumed. Whatever innovative idea we generate, we have to test them and they must be supported by proved results. For this, marketing research is very important. Consumer behaviour is one such aspect that is very difficult to measure by guesswork. Anything you say about it, it must be based on reliable research. In this there must be analysis on brand loyalty of cigarette smokers and it explained the rationale below.

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EXECUTIVE SUMMARY
An in depth Study of Cigarette smoker, survey is done in this research and it conveys that maximum number of respondents were in the age group of 18-24 and the least number of respondents were in 12-17age group and above 51age group and most of the cigarette smoker between 6001 –12000 income group while the minimum number of respondents were in the income group below 3000. The maximum numbers of cigarette smokers were graduate while the minimum numbers of respondents were illiterate. In this research it shows that 40% of the respondents were students while only 4% were professionals. So we can notice that out of 100 respondents, the maximum number of smokers were in the age group of 18-24 years who were students and graduates. These research tell you that the most important factor in buying the cigarette is taste and its weightage is around 50% and price is secondary factor which has got around 20% weightage. Thus, it can conclude that taste is more important than price and all the other attributes but whose income is below 3000, price and taste are almost equally important. They are more price conscious compared to other income groups people. Importance of price in buying behaviour decreases as income increases up to Rs.16000 and thereafter it remains almost same and it also possible youngsters are mainly brand switchers because they are at the initial stage of smoking and they are not habituated to a particular brand. In this research friend circle is the main reason behind starting smoking. Advertisement has very little impact on the person to start smoking, so advertisement is not the boost factor at the initial stage. It also shows that around 65% of respondents came to know their regular brand from their friends. Only 21% of the respondents have selected the brand after looking its advertisements. In short, reference group (friends and shop owners) has strong effect on the selection of the brand, even most of smoker is aware of other brand.

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In this Most of the respondents influenced by the overall presentation of the advertisements. Youngsters are mainly influenced by the model(s) or punch line (logo) of the brand. Mainly, the respondents who opted for logo or punch line tried to match their personality with the model or slogan (like “Made for each other” or “Discover a passion”). So it is a psychological effect of advertisement on the respondents. Or even the other brand advertising is good the most of the smoker respondent that will ignore that brand. Thus average spending on cigarette by students (who smoke cigarettes regularly) are around 30%. Total number of students was 40 out of 100 respondents. Out of 40 students, 30 students were regular smokers and the remaining were occasional smokers. Average spending on cigarettes by the occasional student smokers was below 10% of their disposable income. The brand prefers by the respondent was “Will” which is on the 1st position followed by Will classic, Gold flake, Four square, Bristol etc. The consumption of cigarette for a regular smokers who smoke less than 10 cigarettes a day and this smokers prefer to buy cigarettes in a pack instead of buying individual pieces but Youngsters who fall in the age group of 12-17 and 18-24 prefer to buy individual pieces, even though they have to pay higher price only because they cannot take it home.

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IMPORTANCE OF RESEARCH

It is said that though the cigarette smokers are not loyal to their health, they are very loyal to the brand of cigarette, which they smoke. One cannot make such assumptions without any strong basis. To justify brand loyalty among cigarette smokers, one small survey have undertaken. The survey also throws light on the reference groups, which influence them in making decision regarding the purchase of cigarette and reasons for smoking. To facilitate the purpose, I have formed a questionnaire and got it filled by 100 respondents.

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OBJECTIVES
To study the changes in the brand loyalty in response to change in price and also to find out price elasticity. Cigarette is one of the products where Government is neither interested in increasing the domestic consumption nor interested in curbing consumption. In order to generate more revenue, Government increases the excise duty on cigarettes on every year, which in turn brings about the increase in price of cigarettes. The basic assumption that Government follows behind following a policy of steep and continuous increase in excise duty on cigarettes is that the demand for cigarette is price inelastic. However, whether cigarette in India is price elastic or not is an empirical question, which should be addressed scientifically. In order to gain some insight into the problem, some firsthand research was needed and that is why the first stone to build the presented research was laid here. Nationwide research on this topic could yield some interesting facts and finding but due limited scope to Mumabi city only. 1.One more thing that goes along with the change in price is brand loyalty. Many a times change in price comes out to be swift in brand loyalty. So the objective was to measure change in brand loyalty too. 2. To study the change in brand loyalty in response to change in income. Income, which depicts affordability of a consumer, is the crucial factor in determining buying behaviour. Change in income changes the buying behaviour of a consumer and so do the brand loyalty. Hence our objective was to study this change.

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3. To study the effect of freebies scheme on brand loyalty. 4. To study the aggregate effect of all the factors discussed above on brand

loyalty. 5. To study the importance that cigarette smokers attach to various attributes

(price, taste, filter etc.) while buying. 6. To study the effectiveness of a good advertisement of a new brand in terms of

its ability to attract consumers loyal to other brands.

SUPPLEMENTARY OBJECTIVES 1. To study the effect of non-availability of favorite brand on the brand loyalty of smokers. 2. To study the impacts of new brand (price of which may be less than, equal to or more than the price of their favorite brand) on the brand loyalty of smokers. 3. To study the reasons for starting smoking. 4. To know the role of reference groups in selection of brand of a cigarette.

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RESEARCH METHODOLOGY
RESEARCH DESIGN This topic includes the conceptual structure within which research has been conducted. The purpose of research design is to be as efficient and accurate. The research design is to get all possible information TYPE OF RESEARCH: Descriptive method has been used in this research for the collection of data. As the research is related to the study of consumer behaviour which can more effectively be studied through direct questions, experimental research will not be much effective. Also, considering the time constraint, descriptive research is the most suitable design for this research. SOURCE OF DATA: To overcome the limitations of incompatibility, obsolescence, and bias, I went for the primary data. A random sampling method of data collection is used for this project DATA COLLECTION METHOD: Data has been collected through questionnaire method. The questionnaire was designed in such a way to cover as many aspects of consumer behaviour as possible. SAMPLE SIZE: Total 114 persons were contacted and interviewed. Out of these, 14 questionnaires were rejected due to incompleteness, conflicting answers etc. Therefore, the final sample size was of 100.

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SAMPLING: Here in this project studied is on consumer behaviour of people in mumbai. Within the city we have collected samples from different areas. To reduce the biases which may come through difference in the level of income, attitude, lifestyle etc. of the people in different areas. Scope of The Study The area of specification was marketing; the topic was estimate to study the brand loyalty of cigarette smoker. The geographic scope was in mumbai Limitations of Study • • Some respondent were not cooperative and friendly. Report is qualitative.

Analytical of data Since most of the data collected are from close-ended question which forms nominal scale kind of data. The analytical technique used to validate the response through S.P.S.S. (Statistical package for social science) marketing research
software. S.P.S.S. EXACT test is a statistical package for analyzing continuous as

categorical data by exact methods. The statistical methodology underlying this exact test is well established in the statistical literature and may be regarded as a natural generalization of fisher’s exact test for the contingency table.
S.P.S.S. EXACT tests are the result of collaboration between CYTEL Software Corporation and S.P.S.S. INC.

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IMPLEMENTATION
Before starting the actual research, I prepared a questionnaire for pilot study. I interviewed a random sample of 15 respondents. Through the pilot study, I came to know which questions were wrongly worded, which were ambiguous, which needed to be added or to be subtracted etc. On the basis of feedback of this study, I modified the questionnaire. I prepared the final questionnaire in accordance with the objective of the research. The final questionnaire was used throughout the research. I selected different areas of the city to do study like so that the bias response could be reduced to the best possible extent. I contacted respondents personally and got the information as per the questionnaire. Sometimes it happened that people tells lie, when asked about their regular brand, total expenditure on cigarettes, etc. So I have discarded their questionnaires. To reduce the magnitude of this problem, I selected respondents whom I saw smoking at the Pan shop or General store so that the brand name, expenditure etc. can be verified. Many of questions were designed to cross check the answers of the respondents. I tried to make the questionnaire as comprehensive as possible to cover various aspects related to research. I have used Constant Sum Method in one of the questions. The questionnaires were handed over only to those respondents who showed desire to fill up them on themselves, whereas in most cases I have filled up the questionnaires as per their answers. So that they might not feel boredom or confusion in filling up the questionnaires.

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HYPOTHESIS****
(1) There is no significant relationship between brand loyalty and age group. SUB HYPOTHESIS: (A) Brand loyalty is not affected by change in price. (B) There is no significant difference in brand loyalty among the various income groups due to change in price( price increases by 25%). (C) Brand loyalty is not affected by change in income. (D) Brand loyalty is not affected by scheme of free gift introduced by other brand. (E) There is no significant difference in brand loyalty between regular smokers and occasional smokers. (2) People give more importance to taste as compared to other attributes. (3) Does the good advertisement of the new brand help in switching the brand loyalty.

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SAMPLE DESIGN
AGE-WISE AND INCOMEWISE SAMPLE DESIGN
INCOME GROUP (In RS.) <=3000 3001-6000 6001-12000 12001-16000 >16000 TOTAL AGE GROUP 12-17 18-24 1 3 2 1 2 9 3 4 10 9 7 33

25-40 3 7 8 6 5 29

41-50 2 3 7 2 6 20

>51 1 3 1 2 2 9

TOTAL 10 20 28 20 22 100

The above table shows that maximum number of respondents were in the age group of 18-24 and the least number of respondents were in 12-17 and 51 above age group.
Age-wise and Income-wise sample design
30 1 25 20 15 10 5 0 1 2 3 3 1 <=3000 7 2 3 3 7 10 4 3 2 9 1 120018 2 2 6 6 5 >51 41-50 25-40 18-24 17-Dec

Age-wise

7 2 >16000

3001-6000 6001-12000

Income-wise 16000

The above graph shows that maximum number of respondents were in 6001 – 12000 income group while the minimum number of respondents were in the income group below 3000. 11 N.L.Dalmia Institute of Management studies & research

Education
15% 5% 10% 15% illeterate upto 12 standard undergraduate graduate post graduate 55%

The above graph shows that maximum number of respondents were graduate while the minimum number of respondents were illiterate.

Occupation
Businessman 25 16 4 Professional Student Serviceman 15 40 Others

The above graph shows that 40% of the respondents were students while only 4% were professionals. The category of others includes a retired person and a labourer. From all the above graphs, we can notice that out of 100 respondents, the maximum number of smokers were in the age group of 18-24 years who were students and graduates.

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FORMULATION OF HYPOTHESIS
HYPOTHESIS 1 STEP 1: H0: There is no significant relationship between the brand loyalty and age group.

H1: There is a significant relationship between the brand loyalty and age group.
TABLE SHOWING BRAND LOYALTY AMONG VARIOUS AGE GROUPS AGE/STATUS 51AND TOTAL ABOVE NO. % NO. % NO. % NO. % NO. % NO. % 4 44,44 20 60,61 23 79,31 16 80,00 7 77,78 70 70,00 5 55,56 13 39,39 6 20,69 4 20,00 2 22,22 30 30,00 9 33 29 20 9 100 12 - 17 18 – 24 25 - 40 41 - 50

BRAND LOYAL NOT BRAND LOYAL TOTAL

WHO IS BRAND LOYAL? According to the definition, brand loyalty is determined by following criteria: 1.

At the various level of price rise (from 15% to 25%), cigarette smokers

should either opt for smoking less quantity of the same brand or there should not be any change in the current buying pattern, but he must not go for another brand. 2. Similarly, at the various level of increase in income, they should either opt for smoking more quantity of the same brand or there should be no change in the current buying pattern, but he must not go for the other brand . 3. He should not switch over to other brand, if other brand introduces the

scheme of free lighter (worth Rs.25) in return for ten empty packets of its brand. The cigarette smokers who will pass all the above three criteria will be considered as a brand loyal.

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Inter-relationship Among The Three Criteria Of Brand Loyalty
In testing the hypothesis of brand loyalty among the various age groups, I have taken the three criteria. There should be some relationship among these criterion, otherwise overall picture will not be analytical in the nature. For this purpose, I have tested the relationship between the brand loyalty and change in price (here maximum change is 25%), brand loyalty and change in income (here maximum change is 30%), brand loyalty and effect of free gift scheme introduced by other company.
NO. OF RESPONDENTS PASSING IN THREE CRITERIA AGE NO. OF BRAND NO. OF BRAND GROUP LOYAL LOYAL NO. OF BRAND LOYAL 25% INCREASE 30% INCREASE FREE GIFT IN IN INCOME PRICE (Z) (X) (Y) 4 24 26 16 7 77 7 24 25 20 9 85 8 29 28 20 8 93

12-17 18-24 25-40 41-50 50+ TOTAL

CALCULATION OF CORRELATION X Y Z (X-X) (X-X)^2 (Y-Y) (Y-Y)^2 (Z-Z) (Z-Z)^2 (X-X)(Y- (Y-Y)(Z-Z) (X-X)(Z-Z) Y)

4 24 26 16 7 77

7 24 25 20 9 85

8 -11,4 129,96 29 8,6 73,96 28 10,6 112,36 20 0,6 0,36 8 -8,4 70,56 93 387,2

-10 7 8 3 -8

100 49 64 9 64 286

-10,6 10,4 9,4 1,4 -10,6

112,36 108,16 88,36 1,96 112,36 423,2

114 60,2 84,8 1,8 67,2 328

106 72,8 75,2 4,2 84,8 343

120,84 89,44 99,64 0,84 89,04 399,8

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r( x,y ) = [ å(X-X)(Y-Y)/[ å(X-X)^2 å(Y-Y)^2]^1/2] r( y,z) = [ å(Y-Y)(Z-Z)/[ å(Y-Y)^2 å(Z-Z)^2]^1/2] r( x,z) = [ å(X-X)(Z-Z)/[ å(X-X)^2 å(Z-Z)^2]^1/2] Therefore, r xy = 328/(387.2 * 286)^1/2 = 0.986 r yz = 343/(286 * 423.2)1/2 =0.986 r xz = 399.8/(382.2 * 423.2)^1/2 = 0.988 There is a positive relationship among all the three criteria. It is of utmost importance because if any one is negative then effect of positive relation can be nullified by the effect of negative relation and overall picture cannot throw light on the effect of individual criteria on the brand loyalty. As all are very near to 1, it suggests that the trend between the various criteria is almost perfectly positive linear relationship. As there is a positive interrelationship between all the three criteria, we can go ahead by taking their individual effect on the brand loyalty.

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STEP 2: CALCULATION OF CHI-SQUARE
OBSERVED FREQUENCY O 4 20 23 16 7 5 13 6 4 2 EXPECTED FREQUENCY E 6,3 23,1 20,3 14 6,3 2,7 9,9 8,7 6 2,7 (O-E)^2/E

12

9

0,8397 0,416 0,3591 0,2857 1 0,9707 0,8379 0,8379

6

8,7

c = 5,547 STEP 3: Level of significance a = 5% STEP 4: Degree of freedom = (r-1)(c-1)-2 = (2-1)(5-1)-2 = 4-2 =2 At a = 5%, and degree of freedom = 2 ctab = 5.991 STEP 5: Here c cal < ctab 16 N.L.Dalmia Institute of Management studies & research

So the hypothesis is accepted. So there is no significant relationship between the age group and brand loyalty.

But if the analyses of the data done through the table, we can notice that number of brand loyal increases when we move from age group 12-17 to 18-24 years. Similar is the case when we move from age group 18-24 to 25-40 years. Thereafter, brand loyalty stabilises at around 80%. By which, we can conclude that there is no direct relationship between brand loyalty and age group. But upto age group 25-40 yrs, it increases from 45% to 80% and thereafter stabilises for other groups.

.

TABLE SHOWING NO. OF BRAND LOYAL AT VARIOUS PRICE CHANGE

STATUS/CHANGE IN PRICE BRAND LOYAL NOT BRAND LOYAL TOTAL

15% 20% 25%

92 87 8 13 100 100

77 23 100

Who Is Brand Loyal With Respect To Change In Price? Here change in income of cigarette smokers and schemes of free gift from other brands are ignored. Here the emphasis is to know the effect of only change in price on the brand loyalty. With respect to increase in price, person going for two options (less quantity of the same brand or no change in the current buying pattern) will be considered brand loyal.

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INCOME ELASTICITY

We have calculated income elasticity for the respondents who opted for smoking more quantity of the same brand if their income increases. And the result is as follows:
INCOME ELASTICITY INCOME INCREASES BY 10% 20% 30% 18,18% 30,50% 40,55% 1,82 1,525 1,35

AVG. INCREASE IN QTY. OF SAME BRAND INCOME ELASTICITY

The above data shows that as income rises from one level to other, average consumption of the same brand increases, but at the decreasing rate (for e.g. 30.5 – 18.18 > 40.55 –30.5) and because of that income elasticity is decreasing. SUB HYPOTHESIS: Step 1: H0: Brand loyalty is not affected by scheme of free gift introduced by other brand. H1: Brand loyalty is affected by scheme of free gift introduced by other brand.
AGE WISE BRAND LOYAL STATUS AGE GROUP 12-17 18-24 8 1 9 29 4 33 25-40 28 1 29 41-50 20 0 20 51&ABOVE 8 1 9 TOTAL 93 7 100

BRAND LOYAL NOT BRAND LOYAL

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STATUS

INCOME-WISE BRAND LOYAL INCOME GROUP <=3000 3001-6000 6001-12000 12001-16000 9 1 10 19 1 20 27 1 28 19 1 20

>16000 19 3 22

TOTAL 93 7 100

BRAND LOYAL NOT BRAND LOYAL TOTAL

Who Is Brand Loyal With Respect To Free Gift Scheme Of Other Brand? Here, respondents who opted for no change in the current buying pattern will be considered as the brand loyal. There is no need to test the above hypothesis by taking help of chi-square. From the table itself, we can directly conclude that scheme is ineffective for switching the brand loyalty of cigarette smokers irrespective of their age group and income group. SUB HYPOTHESIS: [E] STEP 1: H0: There is no significant difference in brand loyalty between regular smokers and occasional smokers. ( p1 = p2 ) H1: There is significant difference in brand loyalty between regular smokers and occasional smokers. ( p1 > p2 ) p1=proportion of brand loyal among regular smokers=0.72 p2=proportion of brand loyal among occasional smokers=0.61

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BRAND LOYALTY AMONG THE REGULAR AND OCASSIONAL SMOKERS STATUS/PATTERN SMOKERS REGULAR NO. BRAND LOYAL NOT BRAND LOYAL TOTAL 59 23 82

% 71,95 28,05 100,00

OCASSIONAL NO. 11 7 18

% 61,11 38,89 100,00

TOTAL NO. 70 30 100

% 70,00 30,00 100,00

Here, a person is said to be brand loyal if he passes the entire three criterions defined earlier i.e.: 1. Change in price 2. change in income 3. Gift scheme introduced by other brand of cigarette STEP 2: p1=0.72 n1=82 p2=0.61 n2=18 Z cal. = (p1 - p2) / (P^ Q^(1/n1 + 1/n2))1/2 = 0.924 P^ = ( n1*p1 + n2*p2 ) / ( n1 + n2 ) = 0.70 Q^ = 1 - P^ = 1 – 0.70 = 0.30 STEP 3: Level of significance α =5% STEP 4: 20 N.L.Dalmia Institute of Management studies & research

Z tab at right tailed test = 1.645 As H1 is p1 > p2 , it is right tailed test.

STEP 5: As Z cal < Z tab , H0 is accepted. If we notice the data of table, It can directly conclude that both categories of smokers are brand loyal, but the percentage of regular smoker is higher than the occasional smokers. Brand loyalty ratio between two categories of smokers is 72% and 61% respectively. It means that occasional smokers can also be brand loyal.
HYPOTHESIS 2 STEP 1:

H0: people give more importance to taste as compared to other attributes H1: people do not give more importance to taste as compared to other attributes
PREFERENCE TOWARDS ATTRIBUTES ATTRIBUTES PRICE TASTE FILTER TOBACCO ADVERTISEMENT OTHERS TOTAL
OTHERS: (AROMA, FRAGRANCE, COLOUR, PACKAGING)

POINTS 1930 4983 1339 893 266 589 10000

The above table shows that the preference towards attributes, here the respondent is given the points according to there preference to the attributes in these most of the respondent given more points or preference to taste which is 21 N.L.Dalmia Institute of Management studies & research

4983 than followed by price which is 1930 and than filter, tobacco, advertisement, others

ANALYSIS OF PREFERENCE TOWARDS ATTRIBUTES
TABLE SHOWING AGEWISE PREFERENCE TOWARDS ATTRIBUTES ATTRIBUTES AGE GROUP 12 - 17 NO. % PRICE TASTE FILTER TOBACCO ADVERTISEMENT OTHERS 245 405 45 40 95 70 900 18 - 24 NO. % 25 - 40 NO. % 41 – 50 NO. % 14,75 47,25 26,5 8,5 1,25 1,75 51 & ABOVE NO. % 170 570 85 55 5 15 900 TOTAL NO. %

27,22 720 21,82 500 17,24 295 45,00 1528 46,30 1535 52,93 945 5,00 234 7,09 445 15,34 530 4,44 353 10,70 275 9,48 170 10,56 111 3,36 30 1,03 25 7,78 354 10,73 115 3,97 35 3300 2900 2000

18,89 1930 19,3 63,33 4983 49,8 9,44 1339 13,4 6,11 893 8,93 0,56 266 2,66 1,67 589 5,89 10000

From the above table, we can conclude that taste is the most important attribute for the consumers of all age groups. For 51 and above age group, taste has got the highest weightage (around 63%).  Price has emerged as second important attribute for all the age groups except for 41-50. Age group 12-17 is more price conscious than any other age group. It can also be noticed that weightage of price decreases as we move from age group 12-17 to age group 41-50 and thereafter it increases slightly. This indicate that price becomes somewhat important for 51 and above age group people.

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 The advertisement has little impact on the respondents of all age group.  For the age group 41-50, filter emerged as second important attribute.

INCOME-WISE PREFERENCE TOWARDS ATTRIBUTES
ATTRIBUTES INCOME GROUP <=3000 3001-6000 6001-12000 NO. % NO. % NO. %

1200116000 NO. % 9,75 58,2 17,3 5,15 1,5 8,2

>16000 NO. % 265 1065 357 251 81 181 2200

TOTAL NO. %

PRICE 460 46 425 21,25 585 20,89 195 TASTE 455 45,5 990 49,5 1310 46,79 1163 FILTER 50 5 237 11,85 350 12,50 345 TOBACCO 35 3,5 194 9,7 310 11,07 103 ADVERTISEMENT 0 0 68 3,4 87 3,11 30 OTHERS 0 0 86 4,3 158 5,64 164 1000 2000 2800 2000

12,05 1930 19,3 48,41 4983 49,83 16,23 1339 13,39 11,41 893 8,93 3,68 266 2,66 8,23 589 5,89 10000

This table explains that for the respondents whose income is below 3000, price and taste are almost equally important. They are more price conscious compared to other income groups people. Importance of price in buying behaviour decreases as income increases up to Rs.16000 and thereafter it remains almost same. This indicates the inverse relationship between the importance of price and income group.

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ADVERTISEMENT
HYPOTHESIS [3 ] STEP 1: H0: The good advertisement of the new brand helps in switching the brand loyalty. H1: The good advertisement of the new brand does not help in switching the brand loyalty.
Main reason behind starting smoking  In question number 21 of the questionnaire: what did make you start smoking? The result was as follows: REASON FOR STARTING SMOKING REASONS NO. OF RESPONDENTS

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FRIEND CIRCLE TO SHOW OFF OUT OF CURIOSITY RELIEF OF TENSION ADVERTISEMENT TIME PASS TOTAL

45 9 12 13 8 13 100

From the above table, we can conclude that friend circle is the main reason behind starting smoking. Advertisement has very little impact on the person to start smoking, so advertisement is not the boost factor at the initial stage.

Effect Of Reference Group On Brand Selection

In Q.22 : where did they come to know about the brand, which they

smoke regularly? The result was as follows:

INFLUENCERS NO. OF RESPONDENTS FRIENDS 65 ADVERTISEMENT 21 SHOP OWNER 14 TOTAL 100

The above table shows that around 65% of respondents came to know their regular brand from their friends. Only 21% of the respondents have selected the brand after looking its advertisements. In short, reference group (friends and shop owners) has strong effect on the selection of the brand.  In Q.23: whether they are aware of the advertisements of the other

brands. The result was as follows:

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AWARENESS OF ADVERTISEMENT OF OTHER BRANDS AWARE YES NO TOTAL NO. OF RESPONDENTS 78 22 100

Here, the respondents were shown cuttings of some popular advertisements and were asked whether they have shown them earlier. Around 78% respondents answered positively. This means that they are aware of the advertisements of other brands but still prefer their regular brand. This shows that they have knowledge about various brands but their buying decision is not affected by the advertisement of other brands. The main reason behind showing the cutting of advertisements and packets of various brands was to help them to recollect whether they have seen it before. The questionnaire was somewhat lengthy, so the idea of showing advertisement was succeeded in capturing the attention of the respondents.  while showing the various advertisements, I had asked the respondents, what does influence them in the advertisement? The result was as follows:

INFLUENCING FACTOR IN ADVERTISEMENT PARTICULARS NO. OF RESPONDENTS MODEL(S) 21 FEATURES 12 CONTENT 18 OVERALL PRESENTATION 30 NO INFLUENCE 19 100

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Most of the respondents influenced by the overall presentation of the advertisements. Youngsters are mainly influenced by the model(s) or punch line (logo) of the brand. Mainly, the respondents who opted for logo or punch line tried to match their personality with the model or slogan (like “Made for each other” or “Discover a passion”). So it is a psychological effect of advertisement on the respondents.

 In Q.25, the main aim was to find out whether the good advertisement of the new brand helps in switching the brand loyalty. We asked the question that if respondents would come across to the advertisement of the new brand, which satisfy their choice about what influence them most in the advertisement, what would be their reaction? The result was as follows:

REACTIONS NO. OF RESPONDENTS TRY IT 21 ASK/INQUIRE FOR IT 12 IGNORE IT 67 TOTAL 100

About 67% of the respondents replied that even though it may have all the factors, which they wanted in the advertisement, they would not switch to the new brand only for the reason that its advertisement is good. From the above analysis, we can conclude that our hypothesis is rejected and good advertisement of the new brand does not significantly attract the cigarette smokers to switch their brand. 27 N.L.Dalmia Institute of Management studies & research

DATA ANALYSIS
1. AVERAGE EXPENDITURE ON CIGARETTE BY THE STUDENTS (% OF THEIR DISPOSABLE INCOME)
CLASS MID FREQUENCY (% SPENDING VALUE ON CIGARETTE) xi fi Fixi c.f 0-10 10-20 20-30 30-40 40-50 50-60 60-70 5 15 25 35 45 55 65 4 5 7 5 4 3 2 30 20 75 175 175 180 165 130 920 4 9 16 21 25 28 30

Disposable income = pocket money + part time/full time job earning Mean X = ∑fixi / ∑fi = 920/30 =30.67% Median = M = n/2th item =30/2th =15th M = L + [(n/2 – cf)/f * w] 28 N.L.Dalmia Institute of Management studies & research

Where L=20, n=30, cf=9, f=7, w=10 M = 28.57% Thus average spending on cigarette by students (who smoke cigarettes regularly) are around 30%. Total number of students was 40 out of 100 respondents. Out of 40 students, 30 students were regular smokers and the remaining were occasional smokers. Average spending on cigarettes by the occasional student smokers was below 10% of their disposable income.

1. MARKET SHARE OF VARIOUS BRANDS MOST PREFERRED BRAND
BRAND NO. OF RESPONDENTS WILLS 37 CLASSIC 20 GOLD FLAKE 21 FOUR 8 SQUARE BRISTOL 9 OTHERS 5 100

In our research, the Wills brand emerged as the most popular brand of cigarette, which accounts for around 37% and Wills classic and Gold Flake were running neck-to-neck at 20%. Other brands of cigarettes include 555, Marlboro, Rothmans, etc.

3.PRICE OF NEW BRAND AND REACTION OF CIGARETTE SMOKERS
REACTION PRICE OF NEW BRAND AS COMPARED TO REGULAR BRAND LESS EQUAL MORE 34 23 15

TRY IT

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ASK AND INQUIRE FOR IT IGNORE IT TOTAL

9 57 100

8 69 100

7 78 100

The above table shows that if the price of new brand is less than the regular brand of smokers, then 34% of smokers will try for the new brand. If it is equal, then 23% smokers will try it. It means that price is important for about 34% of respondents, while around 60% to 70% respondents ignored the new brand irrespective of their price. For the Cigarette Company, they are strong brand loyal. But others either try the new brand or inquire for it. If price is more, the numbers of smokers who opt for trying the new brand are less than if the price is equal to their brand. So far as the new company is concerned, the company should keep low price of the cigarette as compared to their competitors so that brand loyal people at least try for new brand. If desired taste were provided simultaneously, then it may be possible to make them switching to the new brand. On the detailed study of this table, we also find that mainly youngsters (age group of 12-17 and 18-24) and low income group people (upto Rs.6000) will opt for trying the new brand if its price is less as compared to their regular brand. On the other hand, people with high-income group (particularly above Rs.16000) have shown their readiness to try the new brand even if its price is more than their regular brand. Youngsters also show their readiness out of curiosity and to know its taste, provided its price is not too high as compared to the regular brand. From the analysis, it can be concluded that youngsters are mainly brand switchers because they are at the initial stage of smoking and they are not habituated to a particular brand. Their tendency is to taste various brands and choose their favorite brand as the one, which is not too costly and at the same time provides other attributes, which are required for a good brand of cigarette. This age group is more price conscious as compared to age group of 25-40 yrs because youngsters (upto the age of 24yrs) have limited pocket money or less earning. 30 N.L.Dalmia Institute of Management studies & research

4. BUYING AND CONSUMPTION PATTERN OF REGULAR SMOKERS AMONG VARIOUS AGE GROUPS Consumption pattern: less than 10 cigarettes per day
BUYING PATTERN AGE GROUP 12 - 17 18 - 24 NO. ONE OR TWO PIECES WHOLE PACK OTHERS TOTAL 5 0 0 5 % NO. %

25 - 40 NO. %

41 – 50 NO. 9 % 69,23 30,77 0,00

51 & ABOVE NO. % 3 2 0 5

TOTAL NO. % 77,36 18,87 3,77

100,00 13 81,25 11 78,57 0,00 0,00

60,00 41 40,00 10 0,00 2 53

1 6,25 3 21,43 4 2 12,50 0 0,00 0 16 14 13

The above table gives information about the regular smokers who smoke less than 10 cigarettes a day. As we move from age group of 12-17 to 51 and above, smokers prefer to buy cigarettes in a pack instead of buying individual pieces. Youngsters who fall in the age group of 12-17 and 18-24 prefer to buy individual pieces, even though they have to pay higher price only because they cannot take it home. Consumption pattern: 10 and more cigarettes per day
BUYING PATTERN AGE GROUP 12 - 17 18 - 24 NO. % NO. % ONE OR TWO PIECES WHOLE PACK OTHERS TOTAL 1 0 0 1 100,00 0,00 0,00 6 3 0 9 66,67 33,33 0,00

25 - 40 NO. % 4 4 1 9 44,44 44,44 11,11

41 - 50 NO. % 2 4 0 6 33,33 66,67 0,00

51 & ABOVE TOTAL NO. % NO. % 1 3 0 4 25,00 75,00 0,00 14 14 1 29 48,28 48,28 3,45

The second table gives information about the smokers who smoke 10 or more cigarettes a day. Usually cigarette smokers, who smoke more than 10 cigarettes a day, buy in a pack. As we move from age group of 12-17yrs to 51 and above, the 31 N.L.Dalmia Institute of Management studies & research

ratio of cigarette smokers buying cigarettes in a pack increases. The interesting point is that this ratio is higher as compared to the ratio of cigarette smokers who smoke less than 10 cigarettes a day. 5. EFFECT OF NON AVAILABILITY OF FAVORITE BRAND ON BRAND LOYALTY
OPTIONS AGE GROUP 12-17 18-24 NO. % NO. A B C D 3 0 1 5 9 33,33 0,00 11,11 55,56 12 3 4 14 33

% 36,36 9,09 12,12 42,42

25-40 NO. 10 2 9 8 29

% 34,48 6,90 31,03 27,59

41-50 NO. 10 1 3 6 20

% 50 5 15 30

51+ NO. 6 0 2 1 9

TOTAL % 66,67 0,00 22,22 11,11 41 6 19 34 100

A=GO TO ANOTHER SHOP AND BUY SAME BRAND B=SMOKE BIDI C=POSTPONE BUYING D=BUY ANOTHER BRAND OF CIGARETTE

From the above table, we can analyse that as the age group increases, respondents to their sample size increases for option A. Similarly, and it is a decreasing trend for option D. As we move from age group 12-17 yrs to 51 yrs and above, % number of respondents opting for options A increases. Reverse is the situation for option D. This shows that non-availability of a favorite brand has much effect on the youngster to switch their brand. Overall picture shows that around 34% of respondents go for another brand of cigarette, means switching their brand. There are also respondents who either smoke bidi or postpone buying at that time because they do not want to switch the brand. 32 N.L.Dalmia Institute of Management studies & research

33 N.L.Dalmia Institute of Management studies & research

Effect of non availability of favorite brand on brand loyality
60 50 50

40 33 30 29 30

A B C
20

D
15

20 12 10 9 3 01 0 NO. % NO. 18-24 % NO. % NO. 5 0000 34 0000 14 10 9 8 2 0000 10 6 3 1

9 5 6 2 0 1 % NO. 51+ 0000 %

17-Dec

25-40 Age Group

41-50

The overall picture can be represented by graph as shown : Availability of favorite brand is most important for the smoker. If it is not available then around 34% will go to another brand and around 25% who are brand loyal but may be dissatisfied with the non-availability of their favorite brand. Only 41% respondents are strong brand loyal with respect to availability of cigarette at a shop.

FINDINGS OF ANALYSIS

34 N.L.Dalmia Institute of Management studies & research

1.

Taste is more important for the entire age group and income group.

Youngsters and low-income group people are more price conscious than other age group and income group people.
2.

A cigarette smoker will not sift from one brand to another on finding

the

advertisement of the new brand attractive. 3. 4. Brand loyalty is affected by change in price. Brand loyalty is affected by change in income.

5. Brand loyalty is not affected by scheme of free gift introduced by the other brand. 6. There is no significant difference in brand loyalty between regular and occasional smokers. 7. Youngsters are more influenced by the advertisement than other age group smokers

35 N.L.Dalmia Institute of Management studies & research

HYPOTHESIS TESTING

1. Brand loyalty has no direct relationship with the age group. Number of brand loyal rises with the increase in the age group. Brand loyalty is low in age group 12-17 because they are new smokers, so they tend to taste various brands keeping price in mind. While in age group 18-24, it is high as compared to 12-17 age group, because they are habituated to a particular brand to some extent. For the same reason, number of brand loyal increases in age group 25-40. Thereafter it stabilises for the next two age groups. 2.People give more importance to taste as compared to other attributes. I wanted to know the most preferred attribute in a cigarette for the smokers and it found out of the research that for all the income groups as well as age groups taste is the most important attribute. Price is emerged as the second important factor. Students and people whose income is below 3000 Rs. are more price conscious than other age groups and income groups. Packaging has no impact on smokers. 3.The advertisement of new brand does not help in switching the brand loyalty. Attractive advertisement of the new brand does not influence cigarette smokers to switch their brand. Even though the most attractive model(s) or overall good presentation of advertisement is provided by new brand, they will stick to the regular brand. So it fails to attract the significant smokers of other brand.

Recommendations
36 N.L.Dalmia Institute of Management studies & research

1.

Availability of the favorite brand is most important for the brand loyal

cigarette smokers. Because of non-availability, they may try another brand. So physical distribution and delivery on time at various outlets are very important. 2. Company should not increase the price of cigarette more than 20% because

after that the brand loyalty decreases at faster rate. 3. Company should not introduce free gift scheme to attract the cigarette smokers because this people do not have any effect.

37 N.L.Dalmia Institute of Management studies & research

CONCLUSION

Advertisement does not have much impact on the non-smoker to start

smoking.  Friend circle is the main reason behind starting the smoking.  Reference group (friends and shop owners) has strong effect on the selection of particular brand.  A cigarette smoker will not shift from one brand to another on finding the

advertisement of the other brand more attractive.  Availability of favorite brand is of utmost importance for a cigarette smoker. If it is not available, then around 34% of the respondent will switch to other brand and 19% will postpone their buying or may be dissatisfied with the company. So the delivery of the cigarettes on time to various outlets (shops) is very important.

38 N.L.Dalmia Institute of Management studies & research

EPILOGUE
“ No study is fully complete in itself “ – said the elders. Even then, not taking opportunistic shelter in this proverbial saying, I am are fully aware of the many lacunas in this piece of survey, presented in the foregoing pages. Firstly, the sample size should have been much larger in each category of persons sampled. Secondly, some more intriguing questions must have been addressed to the individuals. Had these two deficiencies been not there, the outcome of this survey should have been more interesting and fruitful than what it is in the present form. Alas! The master factor for these two deficiencies was paucity of time. As this is only a pilot survey of small sample size, the same can be expanded to a more efficient and highly useful study. As the ‘proof of the pudding is in eating’, I sincerely hope and wish that this pudding will prove tasteful and informative to the reader.

39 N.L.Dalmia Institute of Management studies & research

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