CONSUMER PREFERENCE TOWARDS AAVIN GHEE

GUNA SEKAR.J
113218631011

1st year MBA | Velammal Engineering College | Chennai

INTRODUCTION
Consumer satisfaction is an ambiguous and abstract concept and the
actual manifestation of the state of satisfaction will vary from person to
person and product/service to product/services. The state of satisfaction
depends on a number of both psychological and physical variables
which correlate with satisfaction behaviors such as return and
recommended rate. Consumer satisfaction is a key ingredient to the
success of any business. It is the most important factor that creates
repeated consumers. Some people know it but do not realize its
importance. If a consumer of yours is satisfied with one of your products
or services, chances are this consumer will purchase more of your
products or service, which will increase your revenue. Therefore, in
order to have your new or existing consumers buy more from you, you
will have to follow techniques that work. Consumer satisfaction takes a
very important place in marketing. As much as you think that your
marketing strategies should help you generate sales, think about how the
same marketing strategies could help you achieve consumer satisfaction.
Consumer behavior and attitude helps to
determine effective technique and strategies by the marketers for
attaining great competition advantage in the market. Consumer
behaviors make “Yesterday’s luxuries are today’s necessaries”. In the
modern and competitive world people must do heavy work both
mentally and physically to survive successfully. So they require more
energy and stamina, for that they want nutritious and health drinks.
Health is man’s precious possession. It influences all his activities and
shapes his destiny. An understanding of health is the basis of all health
care. Health is wealth. This indicates the importance of health. Health, in
fact is a key to education, success, good citizenship and happy life.
Without good health an individual cannot perform efficiently. A healthy
individual is like a pillar of a society.
The health of Consumer satisfaction is an
ambiguous and abstract concept and the actual manifestation of the state
of satisfaction will vary from person to person and product/service to
product/services. The state of satisfaction depends on a number of both
psychological and physical variables which correlate with satisfaction
behaviors such as return and recommended rate. Consumer satisfaction
is a key ingredient to the success of any business. It is the most
important factor that creates repeated consumers. Some people know it
but do not realize its importance. If a consumer of yours is satisfied with
one of your products or services, chances are this consumer will
purchase more of your products or service, which will increase your
revenue. Therefore, in order to have your new or existing consumers buy
more from you, you will have to follow techniques that work.
Consumer satisfaction takes a very important
place in marketing. As much as you think that your marketing strategies
should help you generate sales, think about how the same marketing
strategies could help you achieve consumer satisfaction. Consumer
behavior and attitude helps to determine effective technique and
strategies by the marketers for attaining great competition advantage in
the market. Consumer behaviors make “Yesterday’s luxuries are today’s
necessaries”. In the modern and competitive world people must do
heavy work both mentally and physically to survive successfully. So
they require more energy and stamina, for that they want nutritious and
health drinks. Health is man’s precious possession. It influences all his
activities and shapes his destiny. An understanding of health is the basis
of all health care. Health is wealth. This indicates the importance of
health. Health, in fact is a key to education, success, good citizenship
and happy life. Without good health an individual cannot perform
efficiently. A healthy individual is like a pillar of a society. The health of
an individual by keeping himself free from disease helps in stopping the
spread of disease in one’s own community and the society at large an
individual by keeping himself free from disease helps in stopping the
spread of disease in one’s own community and the society at large.

RESEARCH QUESTIONS
1. What are the socio-economic factors of packaged customers?
2. What are the conceptual back-ground of packet Ghee in Chennai?
3. What are the brand loyalty and other related concepts?
4. What are the factors influencing in using particular brand of packaged
Ghee?
5. What are the suggestions for improving brand loyalty of packaged
Ghee?

OBJECTIVE OF THE STUDY

1. To analyze socio – economic factors of packaged Ghee customers.
2. To study the conceptual back ground of packet Ghee in Chennai.
3. To examine the brand loyalty and other related concepts.
4. To evaluate the factors influencing in using particular
Brand of packaged Ghee.
5. To offer probable suggestions for improving brand loyalty of
packaged Ghee.

CONCEPTUAL REVIEW
Definition of Customer Satisfaction
Customers derive satisfaction from a product or a service based on
whether their need is met effortlessly, in a convenient way that makes
them loyal to the firm. Hence, customer satisfaction is an important step
to gain customer loyalty.

Meaning of Customer Satisfaction

Customer satisfaction is the measure of how the needs and responses are
collaborated and delivered to excel customer expectation. It can only be
attained if the customer has an overall good relationship with the
supplier. In today’s competitive business marketplace, customer
satisfaction is an important performance exponent and basic
differentiator of business strategies. Hence, the more is customer
satisfaction; more is the business and the bonding with customer.

Factors Influencing Customer Satisfaction

1. Department wise capability of the supplier.
2. Technological and engineering or re-engineering aspects of products
and services.
3. Type and quality of response provided by the supplier.
4. Supplier’s capability to commit on deadlines and how efficiently they
are met.
5. Customer service provided by the supplier.
6. Complaint management.
7. Cost, quality, performance and efficiency of the product.
8. Supplier’s personal facets like etiquettes and friendliness.
9. Supplier’s ability to manage whole customer life cycle.
10. Compatible and hassle free functions and operations.

LITERATURE REVIEW
Prasanna (2003)1 carried out a study on customer satisfaction rate
towards Aavin milk in Coimbatore. The non-probability convenience
sampling was adopted to draw a sample of 150 respondents. The study
focused on ascertaining consumer preference in purchase of Aavin brand
of milk and analyzing the perceived differences of various brands of
milk on key attributes and also on identifying measures for improving
customer satisfaction. Purity, taste, thickness, availability, price, service
of agents and place of purchase were the criteria used in the study. It was
found that Aavin brand was rated high for purity, taste and thickness.
Attributes like availability, price and service of agents were also rated
good. Other milk brands like Arokya and Amirtha rated the best for the
purity and taste respectively. For all the brands price and service of the
agents were rated best.
Rajendran, Mohanty and Samarendu (2004)2 their study on "Dairy
Co-operatives and Milk Marketing in India: Constraints and
Opportunities" indicated that, 80 percent of the milk produced by the
rural producer is handled by an unorganized sector and the remaining 20
percent is handled by an organized sector. It is found that the dairy co-
operatives play a vital role in alleviating rural poverty by augmenting
rural milk production and marketing. Involvement of intermediaries;
lack of bargaining power by the producers; and lack of infrastructure
facilities for collection, storage, transportation and processing are the
major constraints which affect the prices received by producers in milk
marketing. Milk quality, product development, infrastructure support
development, and global marketing are found to be future challenges of
India's milk marketing.

V.Kubendran and T.Vanniyarajan (2005)3 made a comparative

analysis of rural and urban consumers on milk consumption. The impact
of socio-economic profile of the consumers namely income status,
occupational position, educational level, sex, age and region was
analyzed using purposive sampling method. It was found that
consumers of milk in rural areas fall behind the consumers in urban
areas. The urban consumers were found to prefer branded milk
especially Aavin milk whereas the rural consumer preferred mostly
unbranded milks. It was hence suggested to discriminate the marketing
strategies to position the product in the two different markets.
Sangu, Gupta and Kumar (2006)4 in their study entitled "Milk
disposal and consumption pattern by milk producers in Western Uttar
Pradesh" revealed that much stock size, productivity of animals, milk
production, milk flow towards milk vendors, total consumption and
conversion of retained milk into products was positively associated with
land holding size, while the share of milk used in fluid form was
negatively associated with landholding size.
Shiralashetti and Hugar (2007)5 in his article titled "Consumer
Satisfaction with Special Reference to Milk Consumers in Gadag City"
points out that more number of unpasteurized milk consumers'
satisfaction level is high compared to pasteurized milk consumers
towards quality, price and taste whereas it is the reverse towards supply
of milk in the study area. The effectiveness of marketing management
depends on the effectiveness in consumer satisfaction, as the consumer
satisfaction is the main objective of marketing management. Therefore,
the marketing management of pasteurized milk suppliers must go for
regular consumer satisfaction survey to adopt appropriate marketing
strategy at right time to enhance their effectiveness in satisfying the
consumers of milk.
CumaAkbay and Tiryaki (2008)6 in their study entitled "Unpacked
and packed fluid milk consumption patterns" suggest that unpacked fluid
milk preference is related positively to household size, income and age
of the household head, and negatively to education level of the
household head and status of the household wife. Similarly, pasteurized
and sterilized fluid milk preferences are related positively to income and
the education level of the household head, and negatively to household
size and age of the household head. Results from these analyses are used
to suggest techniques for marketing fluid milk products to specific
segments of the consumer population
Feroze, Verma and Sawhney (2008)7 in their study on "Economic
Analysis and Milk Utilization Pattern: A Case Study of a Cooperative
Milk Plant in Haryana", found that, the milk plants channelize the milk
produced in rural areas towards the 'consumption pocket' to maintain the
demand supply equilibrium and act as incentive for enhanced milk
production. Milk being perishable commodity, its processing is the best
alternative to enhance its quality and also increase the value of the
product at each stage. There is need for proper planning to decide the
product-mix and level of production for various products to become
profitable and viable.
Bai, Junfei, McCluskey, Jill and Wahl (2008)8 in their study titled
"Fluid Milk Consumption in Urban Qingdao, China" revealed that, the
effect of increased income on milk consumption is positive, as expected.
The expansion of modern food retailers also appears to play a positive
role by facilitating consumers fluid milk consumption and influencing
their food shopping patterns. The young and old consume significantly
more fluid milk than the middle-aged. Health consciousness of the
elderly and the openness of youth to new foods appear to be fueling
these consumption patterns. If the findings of this study apply to other
urban regions in China, then as urbanization continues so also will the
trend of increasing fluid milk consumption in china.
Waheed Akhter (2011)9 Brand image is the important factor which
contribute for a company in terms of brand equity and it also play vital
role in creation of customer loyalty. Although it’s not necessary that
only because of brand image a customer can be retain. There can be too
many other factors which can contribute towards customer retention and
loyalty and these factors can vary from product to product and market to
market.
Hossein Nezakati (2011)10 most of the companies not just only
emphasize on their promotion but there are also the brand characteristics
which can influence customer loyalty. Price and product quality
becomes the prior elements in customer loyalty in brand characteristics.
Customer loyalty develops on the basis of price and quality as these are
the initial factors for considering a product for purchase again and again.
Deepa Ingaval and Thakar (2012)11 made a study on customer
preference for milk and milk products. The objectives of their study is to
identify the customer preference towards the milk and milk products, to
identify the reasons for change in the purchase decision and to find out
the most preferred place for product purchase. The study revealed that
the customers preferred packaged branded milk and milk products over a
period of time from 1991 to 2006. The change in purchase decision was
due to marketing factors such as availability, advertisement, product
quality and price of the products. It was also revealed that grocery shops,
bakeries and sweet markets were the preferred place of purchase of dairy
products, some of them preferred to purchase form company outlets and
milk shoppers.
Parag A. Inamdar, (2013)12 in his study of “Consumer Protection - A
Study of Consumer Awareness in Mumbai City District” found that 32%
consumers were aware about the consumer protection law and 68% were
not about such protection law and 14.6% know the procedure of filing a
complaint in consumer courts and 85.4% does not know the procedure
of filing a complaint in consumer courts.
Pushpa, M. and Senthilvasan, K.G. (2013)13 in their study “A Study
on Consumer Awareness among the People in Palani Town” reveals that
a vast majority of consumers in our country lack Consumer Education
particularly those in rural areas who are easily subject to exploitation
and for this purpose there must be practical support on the part of the
Government, non- Government organizations, business and corporate
Entities, consumer protection department and educational research
institution. Consumer awareness is mainly focus on quality of the
product, price of the product, brand of the product. Consumer
satisfaction, consumer preference towards the product, product
distribution that is channels of distribution and customer loyalty is the
major area to satisfy the customer. Consumerism is essentially a social
movement started to secure more rights for the buyers. It requires the
marketers to give greater attention to protect the interest of the
consumers. In the western countries, the consumer movement focuses on
such rights of the buyers as the right to choose, the right to safety and
the right to be informed and heard. The movement of consumers is need
to countries like India to protect the interest the buyers against such
unethical practices of marketers, such as adulteration, high price,
quantity loss and so on. Creating awareness among the consumers on the
precautions they should take while buying is one of the objectives of the
consumer movement. The need to buy standardized products from
authorized sellers will be stressed. Once a buyer becomes a victim to the
fraudulent activity of markers all efforts need to be taken to protect his
interest. This is yet at another objective of the consumer movement.
Consumer movement is not something started against the seller’s
interest. It goal is to safeguard the interest of the buyers and remind the
sellers of their duty to adopt ethical business practices.

References
1) Naveen Venkata Prasanna.S " A study on customer satisfaction rate
towards Aavin milk in Coimbatore", Project report, Master of Business
Administration, GRD Institute of Management, Coimbatore, 2003.
2) Rajendran, K.Mohanty, Samarendu, "Dairy Co-operatives and Milk
Marketing in India: Constraints and Opportunities", Journal of Food
Distribution Research, Vol. 35, Number 02, July 2004, pp.34-41.
3) V. Kubendran and T.Vanniyarajan, “Comparative analysis of rural
and urban consumers on milk consumption”, Indian Journal of
Marketing, December 2005, p.27-30
4) Sangu, K P S , Gupta, A K, Manoj Kumar ;"Milk disposal and
consumption pattern by milk producers in Western Uttar Pradesh",
Indian Journal of Dairy Science, 2006 Vol.59(No.2) TS252
5) Shiralashetti, A. S. and Hugar, S. S "Consumer Satisfaction with
Special Reference to Milk Consumers in Gadag City". ICFAI Journal of
Consumer Behavior, Vol. II, No. 2, June 2007 pp. 47-56.
6) Cuma Akbay and Gulgun (Yildiz) Tiryaki. "Unpacked and packed
fluid milk consumption patterns" Agricultural Economics, Vol. 38,
2008: pp.9-20.
7) Sheikh Mohammad Feroze, N. K. Verma and I. K. Sawhney ,,
"Economic Analysis and Milk Utilization Pattern: A Case Study of a
Cooperative Milk Plant in Haryana"; Indian Journal of Economics No.
353 October 2008 Vol. LXXXIX ISSN 0019-5170
8) Bai, Junfei, McCluskey, Jill J. and Wahl Thomas 1., "Fluid Milk
Consumption in Urban Qingdao, China". Australian Journal of
Agricultural and Resource Economics, Vol. 52, No. 2, pp. 133-147, June
2008
9) Waheed Akhter, Abdus Sattar Abbasi, Imran Ali and Hasan Afzal
(2011). Factors affecting customer loyalty in Pakistan. African Journal
of Business Management, 5(4): 1167-1174
10) Hossein Nezakati1, Yen Lee Kuan2 and Omid Asgari (2011).
Factors influencing customer loyalty towards fast food restaurants.
International Conference on Sociality and Economics Development, 10:
12 -16
11) Deepa Ingavale and Thakar.H.M, ”A study on customer preferences
for milk and milk products”, Indian journal of marketing, Vol.42, No 8,
Aug. 2012, Pp19-25
12) Partap Singh and Joginder Grewal –“Consumer Protection in India:
Some Issues & Trends” - International Journal of Latest Trends in
Engineering and Technology Vol. 2 Issue 1 January 2013 p.p 272
13) Pushpa .M and Senthilvasan K.G- “A Study on Consumer
Awareness among the People in Palani Town” -Kisan World May 2013
Vol.40 No.5 p.32

METHODOLOGY SOURCE OF DATA

The study is based on primary data, the source of data which lies with
the respondents of the study. Secondary data were collected from
various articles, periodicals, websites, disser-tation, thesis and journals
pertaining to the relevant matter of the subject under study.

SAMPLE SIZE
A sample size consists of 150 Aavin Ghee consumers where selected.
The sample size is selected by adapting convenient random sampling
techniques.

TOOLS FOR COLLECTION OF DATA

The questionnaire is the major tool used for collecting the pri-mary data
from the respondent. The first part with personnel information of the
respondents and the second part deal with the consumer satisfaction of
packet Ghee.

TOOLS FOR ANALYSIS

The statistical tools used for the purpose of analysis of this study as 1).
Reliability
2) T-test 3) Frequency 4)Annova

DATA ANALYSIS AND INTREPETATION

Introduction
The study is an analyze the factor which influence the aavin product.
Following are the factors.
1. Age
2. Gender
3. Occupation
4. Income level
5. Sachet Ghee
6. Satisfaction of aavin price rate
7. Individual support
8. Quality of Ghee
9. Period of usage
10.Buying motivators
11.Purchase of other aavin products
AGEWISE CLASSIFICATION OF AAVIN MILK
Age is also an important factor which determines the ability of the
human being therefore the researcher wanted to analyze the age factor of
the aavin Ghee. The following table the age wise classification of the
aavin Ghee.

Age No. of Respondents Percentage

21-30 16 32
31-40 10 20
41-50 19 38
51-60 5 10
Total 50 100

From the above table it is clearly understood 19% of people using aavin
products were belonged to 41-50 group next to it. 21-30 ages a group
person involved in aavin products that is 32%.

Gender Wise Classification

Because of aavin Ghee quality assurance, the male and female
people response to bring aavin Ghee as shown in the following table.
Gender No.of Percentage
Respondents
Male 28 56
Female 22 44
Total 50 100

The above table reveals that 56% respondents are male and the
remaining 44% respondents are female.
Occupation
Through aavin Ghee business lot of people get job directly or
indirectly. Some of them are listed in the following table.
Occupation Level No. of Respondents Percentage
Professional 12 24
Business 14 28
Private Salary 8 16
Government Salary 10 20
Others 6 12
Total 50 100

From the above table, respondents have undergone business category.

Then 6 respondents have undergone other occupation.

Income Level
Depending on the family income they buying the aavin Ghee as they
wish.
Income Level No.of Respondents Percentage
Upto 5000 22 44
5001-10000 12 24
10001-15000 10 20
15001-20000 6 12
Total 50 100

From the above table, it was identified that 44% of respondents earn
rupees up to 5000 per month. 24% of the respondents earn more than
rupees 10000 per month.
Satisfaction of aavin price rate:
Due to the good quality of milk, the people bring aavin Ghee with their
satisfied price rate. Though the price of the milk increases due increase
ininflation percentage or price hike, the people eagerly purchase the
aavin product.
Satisfaction of Aavin No. of Respondents Percentage
Price Rate
Yes 30 60
No 20 40
Total 50 100

60 % out of 100% purchase the aavin price rate is accepted. Out of

100, 40 percentage people did not accept the price rate of aavin Ghee.

Individual support
This section describes how much of respondent support aavin Ghee
products individually.
Individual Support No. of Respondents Percentage
Yes 41 82
No 9 18
Total 50 100

Out of 100, 82% people individually supports the aavin products. Out of
100, 18% percentage people did not individually support aavin Ghee.

SUGGESTIONS
1. To improve the performance of the union it should be maintain good
relationship with the agents and customers.
2. The union should be improve the quality of Aavin Ghee by the way of
advanced scientific methods.
3. The union should be increase the number of the Aavin Ghee Booths
and expand the door delivery system to in-crease the sale of AavinGhee.
4. The union should be make arrangements for 24 hours service to the
consumers in the AavinGhee booths.
5. To improve the packing of the Aavin Ghee and the package should be
state the expiry time of the Aavin Ghee.
6. The price should be comparatively moderate with other brands.
7. The union should be create awareness about the Aavin Ghee.

CONCLUSION
Ghee products rated as one of the most promising sectors in food
processing industry through traditional dairy products. In today
competitive business environment brands play a vital role. Key factors
for the suc-cess of Branded Ghee is mainly concerned with High Quality
and Product Safety. This will reach the people only through good
advertisements. In this modern competitive world, cus-tomer mainly
prefer taste and new style of package. Available data suggests that the
share of consumer expenditure on Ghee products in increasing both in
urban and rural areas of India and this increase in consumption would
again further momentum in year to come. If suggestions given above are
followed by the Salem District Co-operative Ghee Producers’ Union
Limited it can supply still better quality Ghee with other brands to the
consumers around Salem District.
 QUESTIONNAIRE
Demography
Number of family members:
Infants children Adult
Gender: Male Female
Occupation:
Monthly income:
1.Which Ghee product would you prefer, out of the following and tick
the appropriate product.

 Aavin

 Amul

 Hutsun

 GRB
2. Which product do you use in aavin dairy?
Milk: Full cream Toned
Skimmed Double toned
Butter Dahi Ghee Paneer
Shrikhand Paneer
Icecreams

3. Allocate 100 points regarding the product on questionnaire of Aavin

Ghee
 ……………… Quality and taste
……………… New Varieties
……………… Quantity
……………… Healthy
……………… Service
100points total

4. Rank the following dairy product from 1(best) to 5 (worst) as per your
convenience

Aavin ………………
Hutsun ………………
GRB ………………
Amul ………………
5. Does Aavin Ghee suit your budget? if yes means to which extent?
A .E xcellent b. Good c. Fair
6. Are you satisfied with the quality of Ghee provided by Aavin ?

7. Are you satisfied with the price of Aavin Ghee product ?

 a. Highly satisfied b. Satisfied c. Neither
satisfied nor dissatisfied
d. Dissatisfied e. Highly dissatisfied
8. Are you agree that all products available at dairy booth?

Agree
strongly
Agree Agree Disagree Disagree Disagree
moderately slightly Slightly Moderately Strongly

6 5 4 3 2 1

9. How important you consider nutrients of Ghee product meet the

health requirements of people?
a. Very important b. Important c.
Moderately Important
d. Of little Important e. Un Important

10. Are you satisfied that number of booths sufficient in your locality?

extremely
poor
Below Avg Above Excellent
 avg avg

5
4 3 2 1

11. Describe your opinion about Aavin Ghee and other Ghee items and
service Facilities ( ticking appropriate boxes in the statement)
Low price
High Price
Low quality
High quality
Sophisticated Customers
Unsophisticated customers
Less variety
More Variety

12. Essential elements which is to be added to satisfy customers?

a. Subsidiary product b. New dairy varieties
c. Cost reduction c. Discount

13. Rank Aavin Ghee on its Food Quality and Service?

+5 +5
+4 +4
+3 +3
+2 +2
+1 +1
Quality Service
-1 -1
-2 -2
-3 -3
-4 -4
-5 -5

14. How do you scale Aavin Ghee products ?

Attribute Poor Average Good Excellent
Price
Sweetness
Packaging
Softness
Schemes
15. Rate the Percentage(%) regarding the customer service provided by
Aavin dairy ?

16. Which product of Aavin has mostly attracted towards customer?

a. Milk b. Ghee varieties
c. skimmed milk powder d. Flavored milk
17.Comment about Aavin Ghee ?
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