Brand Awareness Towards Heritage Milk Products

at
Heritage Foods India Pvt. Ltd”

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 ABSTRACT

Consumer awareness with special reference to their buying habits, user behavior attitude
competitor, market share and opinion about heritage milk products and their sales performance in
formulating and appropriate market strategy to grasp a good market like vijaya, companies
cutting the market share of heritage products

The part of study enables company to know the brand awareness of heritage and takes
necessary action come out from the strategy to keep it as market reads wits strong position and
maintain its brand equity among the other players i.e., vijaya tirumula & mother diary.

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 TABLE OF CONTENTS

TITLE PAGE NO.

LIST OF TABLES A

LIST OF FIGURES B

CHAPTER 1:
 Introduction
 Need for the study 1
 Objective of the study 9
11
CHAPTER 2 :
 Literature Review
12
CHAPTER 3 :
 Industry profile
 Company Profile 15
23
CHAPTER 4 :
 Research Methodology 47
 Data analysis and Interpretation 49
CHAPTER 5 :
 Findings
 Conclusion 59
 Suggestions 61
63
BIBLIOGRAPHY
65
QUESTIONNAIRE
67

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INTRODUCTION

BRAND AWARENESS is the probability that consumers are familiar about the life and
availability of the product. It is the degree to which consumers precisely associate the brand with
the specific product. It is measured as ratio of niche market that has former knowledge of brand.
Brand awareness includes both brand recognition as well as brand recall. Brand recognition is
the ability of consumer to recognize prior knowledge of brand when they are asked questions
about that brand or when they are shown that specific brand, i.e., the consumers can clearly
differentiate the brand as having being earlier noticed or heard. While brand recall is the
potential of customer to recover a brand from his memory when given the product
class/category, needs satisfied by that category or buying scenario as a signal. In other words, it
refers that consumers should correctly recover brand from the memory when given a clue or he
can recall the specific brand when the product category is mentioned. It is generally easier to
recognize a brand rather than recall it from the memory.

BRAND RECALL

Brand Recall is the extent to which a brand name is recalled as a member of a brand, product or
service class, as distinct from brand recognition.

Common market research usage is that pure brand recall requires "unaided recall". For example a
respondent may be asked to recall the names of any cars he may know, or any whisky brands he
may know.

Some researchers divide recall into both "unaided" and "aided" recall. "Aided recall" measures
the extent to which a brand name is remembered when the actual brand name is prompted. An
example of such a question is "Do you know of the "Honda" brand?"

In terms of brand exposure, companies want to look for high levels of unaided recall in relation
to their competitors. The first recalled brand name (often called "top of mind") has a distinct
competitive advantage in brand space, as it has the first chance of evaluation for purchase.

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BRAND RECOGNITION

Brand Recognition is the extent to which a brand is recognized for stated brand attributes or
communications

In some cases brand recognition is defined as aided recall - and as a subset of brand recall. In the
case, brand recognition is the extent to which a brand name is recognized when prompted with
the actual name.

A broader view of brand recognition is the extent to which a brand is recognized within a
product class for certain attributes. Logo and tagline testing can be seen as a form of brand
recognition testing. For example, if a product name can be associated with a certain tagline, logo
or attribute (safety and Volvo; "Just do it" - Nike) a certain level of brand recognition is present.
7 WAYS TO BUILD BRAND AWARENESS

To some, branding might not feel like a tangible aspect of running a business. It can’t be seen
like a product on the shelf, or counted like a cash drawer at the end of the night. But, branding is
the reason people pay three times more for a product at one store over another.

Good branding is the product of a clear vision, and nobody knows more about vision than small
business owners. But, with limited resources, creating a brand identity can be tricky. Fortunately,
building brand awareness on the Internet doesn’t need to take a lot of money or resources.

Here are seven strategies to build your business brand:

Define the vision. Before moving ahead with the web site, create a brand positioning statement.
“This isn’t just, ‘What kind of web site do we want to be?’ This is ‘Who are we?’” says Harley
Manning, vice president at Forrester Research in Cambridge, Mass., a technology and market
research firm that advises on the effects technology has on consumers and businesses. Good
brand statements typically include the company’s mission, vision and values. “It’s succinct. It’s
typically something that will fit on a page easily,” he says.

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Build a brand worth believing in. “Do you so believe in what you’re creating that you would
trademark it?” says Andrea Fitch, president and CEO of RedCarpet Creations, Inc., and national
president of the Society for Marketing Professional Services, both based out of Alexandria, Va.
Really consider what kind of brand could represent the business through the next decade. “Don’t
have a logo that in five years you’re going to be tired of and discard for another,” she says.

Remember, the web site is the brand. “A web site is not just a communication medium,”
Manning says. “It is actually a channel that must deliver on the promise.” Essentially, a web site
should embody the promise that it makes to customers. If, for instance, a business claims to be
innovative, the web site should look fresh and modern.

Create a cohesive experience between all mediums. Before she launched her company’s new
web site, Fitch made sure it would be an event that her potential clients would never forget.
RedCarpet Creations mailed 4,000 silver tubes containing scrolls that looked like rolled-up
carpet. Inside the scrolls was an announcement about the web site’s launch. Once online, the web
site was an extension of the invitations because it followed through on the themes of red carpet
imagery and references to visitors being treated like a VIP. Customers should easily be able to
recognize the company’s brand, whether it is print, online or some other form of media, Manning
says.

Don’t sacrifice creativity. Once the brand’s guidelines are established, creative choices must
bring those attributes to life, Manning says. Don’t let the company’s brand become so
dominating that there is no room for new thoughts and ideas. Brand should be the jumping-off
point for interesting ideas, not the place where every new idea dead-ends. Fitch stresses that a
sense of fun and whimsy will only enhance the likelihood that people will take an interest in the
web site.

Don’t communicate brand at the expense of delivering. While a web site can be a significant
tool for building brand awareness, clarity and functionality are paramount. “Just be careful not to
let the communication about your brand get in the way of delivering your message,” Manning
says. People should be able to understand how to navigate the site without knowing a thing about
the company’s catch phrases. “You can’t frustrate and annoy people into liking your brand,” he
says.

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Listen to the customers: They determine a brand’s true value. Pay attention to customer
feedback about the site because, ultimately, it’s the customers’ opinion that counts. When it
comes to building a brand, a company can incorporate everything from signature colors to catch
phrases, but at the end of the day, it’s the consumer who decides what a brand is really worth.
“It’s not what you say [about] yourself, it’s what others say of you,” Fitch says.

OBJECTIVES
1. To know the most preferable milk brands.
2. To know the perception regarding heritage brand among consumers and retailers.
3. To know the parameters that makes Heritage most preferable than other players.
4. To study the tastes and preferences of the customers.

NEED FOR THE STUDY

To acknowledge the consumer awareness, with special reference to their buying habits, use
behavior, attitude, competitor market share and opinion about heritage milk products and their
sales performance in formulating an appropriate market strategy to grasp a good market like
Vijaya, companies cutting the market share of heritage products.

This part of study enables company to know the brand awareness of the Heritage (Brand value of
the Heritage brand) and take necessary action come out from this strategy to keep it as market
reads with strong position and to maintain its brand equity among the other players like Vijaya,
Tirumala, Mother Dairy.

Hence this study is to analyse and to measure the brand awareness of the Heritage in Hyderabad.

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 RESEARCH METHODOLOGY

AREA OF THE STUDY

This study was undertaken in Heritage Foods India Pvt. Ltd.

SAMPLE SIZE

I have taken 100 customers as sample.

PRIMARY DATA

The primary data collection is done with the help of questionnaire that proved to be effective in
collecting the relevant information regarding the brand awareness.

SECONDARY DATA

Secondary data is collected from books, company records and internet.

STATISTICAL TOOLS USED

Percentage analysis

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LITERATURE REVIEW

Brand awareness is improved to the extent to which brand names are selected that is simple and
easy to pronounce or spell; known and expressive; and unique as well as distinct. For instance -
Coca Cola has come to be known as Coke.

There are two types of brand awareness:

1. Aided awareness- This means that on mentioning the product category, the customers
recognize your brand from the lists of brands shown.
2. Top of mind awareness (Immediate brand recall)- This means that on mentioning the
product category, the first brand that customer recalls from his mind is your brand.

The relative importance of brand recall and recognition will rely on the degree to which
consumers make product-related decisions with the brand present or not. For instance - In a
store, brand recognition is more crucial as the brand will be physically present. In a scenario
where brands are not physically present, brand recall is more significant (as in case of services
and online brands).

Building brand awareness is essential for building brand equity. It includes use of various
renowned channels of promotion such as advertising, word of mouth publicity, social media like
blogs, sponsorships, launching events, etc. To create brand awareness, it is important to create
reliable brand image, slogans and taglines. The brand message to be communicated should also
be consistent. Strong brand awareness leads to high sales and high market share. Brand
awareness can be regarded as a means through which consumers become acquainted and familiar
with a brand and recognize that brand.
What is a Brand?
There are many ways of defining brands. This is due to the fact that branding is a
complex concept and hence can be interpreted variously, depending upon the perspective.
However, one the simplest of all definitions is the following:-
Brand = Product + Images
By this definition, brand is the amalgamation of a product and the images that it conjures. These
images may be a result of the product itself (both core and augmented), its usage advertising and
marketing activities, brand personality, the parent company and its reputation, company's

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employees, media reports regarding the brands etc. Overtime, exposure to these results in the
creation of a brand.
For example: -
Lux = Toilet Soap + [Film stars + Beautiful Skin + Fantasy element (Looking like a film star) +
Confidence regarding looks + ——].
Thus, Lux one of many toilet soaps available in the market is a brand because whenever we hear
the word Lux, or see its advertisement in television / newspaper, or see its package on a shelf in
the store, it conjures the image of beautiful Bollywood actresses, and the dream of looking like
them and not first the physical product i.e., a cake of soap.
The American Marketing Association has defined a brand as, 'a name, term, sign, symbol or
design, or a combination of them, intended to identify the goods or services of one seller or
group of sellers and to differentiate them from those of competitors'. Thus a brand is anything
associated with a product or service that accomplishes at least two objectives. Firstly, it identifies
the manufacturer or marketer of the product. Secondly, it differentiates the product from
competitor’s offerings.

It is important to understand that the brand name, term, sign, symbol, logo, design,
packaging style, colour, tone, jingle etc. used to identify the brand, can be legally protected only
when they get registered and become trade marks. A trade-mark is identified by a small 'R' inside
a circle, viz ®. Trademarks, together with other intangible assets such as copyrights and patents
help in making a brand unique.
Another notable definition of brand is given by Duane E Knapp who describe a genuine brand
as,

- The internalized sum of all impressions received by customers and consumers resulting in
distinctive position in their (consumers) 'minds eye' based on perceived functional and emotional
benefits."
Thus genuine brand is not just the result of advertising and other marketing gimmicks. Rather it
is the sum of all consumer perceptions. Only a truly distinctive or unique brand can create a
lasting impression on consumers mind. Once the distinction between the brand and its
competition decreases, there is a greater scope for competing brands to occupy consumers mind
space. The ultimate test of a true brand is that it should provide value to consumer, by giving
them real benefits whether tangible or intangible. Thus, for a young couple with kids eating at

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McDonalds provides the tangible benefit of having hygienic fast food at a reasonable price, and
the intangible benefit of seeing the happy faces of their kids, enjoying themselves at McDonald's
or getting free toys with their Merry Meals
Brand Awareness
In general, awareness describes peoples “perception and cognitive reaction to a Condition
or event”. Awareness does not necessarily imply understanding as it is an abstract concept.
Awareness may be focused on an internal state, such as an instinctive feeling, or on external
events such as sensory perception Marion and Booth (1997) give good examples of awareness:
People have earlier experience of a certain situation and are aware of that. They are also aware of
who they are, the background to the circumstances, where being located as well as the emotions
to the place, what time of year it is and what day it is, and also what to do the rest of the day.
Even though, there is awareness of everything at the same time, the intensity varies. Peoples'
awareness is reshaping its structure constantly, and what we call awareness is the sum of the
individual's experience. So it is possible to do one thing while still be aware of many other
things. Brand awareness is the capacity of consumers to recognize or remember a brand, and
there is a linkage between the brand and the product class, but the link does not have to be
strong. Brand awareness is a process from where the brand is just known to a level when the
consumers have put the brand on a higher rank; the brand has become the "top of mind"(Aaker,
1991).
Anchor to which other associations can be attached is when a new product has to work
to win recognition, because there are few purchase decisions that can be done without knowledge
about the product. Moreover, without attained recognition it is difficult to learn about the
character and advantages of the new merchandise. With product identification it is easy to create
a new relationship to the item. The explanation of familiarity/linking is that people like
familiarity, and knowledge make the product and brand more well-known and familiar. This
contains most of all low-involvement products like sugar, salt, paper towels, when the
knowledge about the brand often makes the buying decision. The positive association between
the number of experience and linking has been shown in studies. The incentives to this
relationship are for example non-figurative pictures, names and jingles. Substance/commitment
can be seen in name awareness which means existence, promise and matter; things that are
important for the buyer. The consumers do not have to know a lot about the company, but as
long as the buyers have positive brand awareness they will buy the product.

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 In some cases, the brand awareness and understanding can depend on a buying situation
and do all the effort for consumers in a buying process. The level of brands to consider is the first
level to reach. When buying merchandise is to choose a collection of trade names to consider - a
"consideration set" (Aaker, 1991).
Brand awareness is much about communication. This is how Aaker (1991, p 63) explains
the awareness and recall of a name: "A name is like a special file folder in the mind which can be
filled with name-related facts and feelings. Without such a file readily accessible in memory, the
facts and feelings become misfiled, and cannot be readily accessed when needed." Brand
awareness is dependent upon both the situation and the level of achieved awareness.

Figure Levels of brand awareness:

1. Brand recognition:
This level is the first stage of brand awareness. It is when the consumers can recognize a specific
brand among others; "aided recall". Aided recall can also be explained as a situation where a set
of given brand names from a given product class is shown. The task is then to identify the
recognized names. Brand recognition is major when consumers face the buying procedure.
2. Brand recall:
This is upon the consumers to name the trademark in a product class. Apart from level
one, this is an "unaided recall" since there are not given any examples of specific brands. The
role of brand recall can also be vital for regularly purchased products like coffee, detergent, and
headache remedies, for which brand decisions usually are made prior going to the store. Further
on, in some categories (such as cereal) there are so many recognised alternatives that the shopper
is overwhelmed.
3. Top of mind:
A brand that is "top of mind" is the first brand that consumers think of within a given product
class (Aaker, 1991). Brand awareness is important since a lot of the consumers feel that if the
brand is well known it has good quality. Most important is not that the brand is well known, it is
what it is known for (Melin, 1999). Further, awareness is a very important brand advantage, but
it cannot sell the product, especially not if the product is new (Aaker, 1991).
In the literature there are many facts that show that brand awareness affects consumer choice
and thereby their choice of brand. Lin and Chang (2003) found by their research that brand
awareness had the strongest effect on purchase decision on habitual behavior of low involvement

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products. They also wrote that Hoyer and Brown (1990) examined the role played by brand
awareness in consumer decision making process and found that it was a dominant factor.
Likewise, Jiang's (2004) investigation also shows that brand name, in other words recognition of
a brand, has an impact on consumers' choice.
Achieving Brand Awareness
Recognition and recall in attaining awareness, engage two responsibilities: to increase the brand
name identity as well as linking the characteristics to the item. This is in particular vital when the
product is new (Aaker, 1991).
Aaker (1991) has set up the following factors concerning how to achieve brand awareness:

Be different, memorable: Today, many products seem alike and the communication in the
product clusters is related. Therefore, it is important to differentiate the product, although, the
bond between the product class and the brand has to exist for easier recognition.

• Involve a slogan or jingle: There can be a stronger linkage between a slogan and a brand
because it involves a visual feature of the brand. By this, the jingle or slogan is powerful and can
make a big change.

• Symbol exposure: It is important to have a known symbol, because it is easy to memorize and
recall a visual illustration. A logo, either an already existing one or a developed one, which is
connected to the brand, can take a huge part in forming and keeping awareness.

• Publicity: Advertising is a proficient way to get publicity and make awareness, since it can be
customized to the communication and the addressees.

• Event sponsorship; The primary role of most event sponsorship is to create or maintain
awareness.

• Consider brand extensions: To show the name or the logo on the products, and make the
name more prominent, is one way to increase brand recall. Examples of names that can be found,
promoted, shown and publicized on other products, than the key product, are Coca-Cola, Heinz
and Sunkist.

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• Using cues: The package is one of the most important cues to a brand, since that is what the
purchaser sees when buying the product. If not knowing the brand or the product, the only
contact to the brand is the package.
• Recall requires repetition: It is easier to build up recognition than to build up recall of a
brand. It can be compared to the fact that one can recognize a face of a person but do not recall
the name. Therefore the link between the brand and the product class needs to be stronger and
the brand needs to be more prominent than in the recognition of the brand. To receive a top of
mind recall is even harder.

• The recall bonus: To keep a top position through regular publicity creates brand awareness as
well as a strong brand which in turn leads to decreasing recall of competitive brands.
To achieve brand awareness, it is important to have a special hallmark because it is the hallmark
that consumers recognize. It is easy to mix up consumer brand and corporate brand with
hallmarks. A hallmark makes it possible to identify a brand. A hallmark is not the same as a
symbol because it is much wider. A brand can have several hallmarks. They are usually divided
into six groups:

1. Word brand, a name or word for example Coca Cola.

2. Design, Coca Cola's design of the bottle.
3. Sound, the melody of the ice cream truck.
4. Scent odour of products like surf excel
5. Pattern, the square pattern of Burberry.
6. Colour, boxes of film for cameras; Kodak's boxes are yellow while Fuji's are green (Treffner
& Gajland, 2001).

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Measuring Brand Awareness
As mentioned above, Keller (2003) claims that brand awareness consists of recognition
and recall and that brand awareness in its turn is a part of brand knowledge. To measure brand
awareness effectively it is important to know where most of the consumer decisions are made. If
many decisions are made at the point of the purchase, where the brand, logo, packaging etc. are
visible, brand recognition measures will be important. If consumer decisions mostly are made
away from the point of purchase the brand recall measures become more important. The most
basic procedure of recognition is to ask the consumer which one of several listed items they have
previously seen or heard of.
There are different measures of brand recall depending on the types of signals given to the
consumers: unaided recall and aided recall, which are described above. It is very important to be
aware of spurious awareness in measuring brand awareness. It means that consumers may
erroneously claim that they recall something that they really do not and even claim that they
recall something that do not exist (Keller, 2003).

Brand is More Than a Name Attached-to Product

Branding is more than putting a label or identification mark on a product. If it were true
than it would be quite acceptable to put the brand name Coca Cola on a food. Obviously, it
would be a misfit. According to Jayant Kochar M.D., Amoreus Retail, 'People buy brands not
products, they buy benefits not features and benefits that make a customer buy are benefit
perceived by their heart and mind and not what the manufacturer may want to believe, i.e.,
benefit. Thus, one can say that it is customers who decide the fate of a brand through their
perceptions in turn one shaped by the actual of the brand'.

A genuine brand is one which delivers something’ extra' i.e., provides added value. This
differentiating 'extra' could be superior functional performance, excellent perceived quality, and
excellent services and so on. It is important to remember that a brand should offer something
unique so that it leaves a lasting impression on consumers mind.

Difference between product and brand

The core product is what the company produces. However, to make this product
differentiated, unique and desirable among its target consumers, it surrounds the product with

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images and creates different associations, leading to the formation of a unique brand image and
positioning in consumers mind. The more differentiated a brand is in consumers mind, the less
likely it is to be replaced by competing brands. Through brands, companies try to establish a
lasting relationship with their customers, in the process making them brand loyal.

The 'extras' or 'add ones' that differentiate one brand from another include; before and
after sales service, self finance or credit service, guarantees and warranties, consumers
perception of quality, value for money .

BRAND POSITIONING
The idea of a well positioned product/brand has always intrigued companies and brand
markets like. The concept of brand positioning has generated a lot of interest among brand
enthusiasts and it is one branding concept backed by empirical research at paradoxical as it may
seem it is one of the most misunderstood concepts of branding. Positioning invariably has been
associated with creating the desired place for the product/brand in the market. Yet, this definition
of positioning is too simplistic. The concept is far more abstract than it is perceived to be, at first
glance.

How ever this does not in any way diminish its importance in brand management as a
matter of fact with increased research activity in the area, the positioning concept is fast
becoming an important branding tool.

WHY WE NEED TO POSITION BRANDS

Brand positioning is a comparatively newer concept in branding, though now days it is

considered a necessary task for every brand marketer. In this section we take look at some of the
factors that contribute towards the growth of positioning concept and have fuelled the interest of
both practitioners and market researchers.

Increasing brand commoditization

With the fast pace of change in technology, the ability of brands to sustain a different-
advantage (especially attribute or service based) is becoming more and more difficult When all

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brands suffer from 'similarity' or 'me-too* syndrome, it becomes very difficult. for consumers to
make a choice. As celebrated writer Naomi Klein opines in her book 'No Logo' that all brands
are similar, therefore, they should be treated as commodities, hence-no logo. Without a tangible
and relevant basis for differentiation no brand will be able to make its presence felt in the
market.

More sophisticated consumers

Easy access to mass media and opening up of new avenues such as digital and interactive
media including internet has made the consumers more aware, "knowledgeable and
sophisticated. This phenomenon is supported by increase in .literacy levels around the world and
rise of consumerism. Consumer’s awareness "regarding their rights have increased tremendously
and correspondingly their expectations have also arisen. The level of consumer sophistication
has also increased due to growth in the number of choices available, partly a result of an increase
in size of organized retail sector and growth of private labels. Therefore, a brand has to position
itself distinctively in the customer's mind by providing distinct advantage that is both meaningful
and relevant for the modern, more demanding consumers.

Increase in brand clutter and stiffer competition

Every product category has many brands competing for the same target segment.Thus
every segment has a large number of brands for customers to choose from. In the absence of any
clear brand benefit/advantage, there is little to motivate the consumer to buy a specific brand.
The increased ' brand clutter' is also blatantly visible in mass -media advertisements. With a
variety of brands offering similar products to consumers the only basis of differentiation that
many offer is, 'the advertising. To stand out from the clutter many advertisements are designed to
capture attention rather than communicate brand benefits turning commercials into means of
entertainment

BRAND CUSTOMER RELATION SHIP:

The relationship between brand and customers is a complex one. The purpose of brand
marketing is more than attraction, acquisition and retention of customers. It is necessary to build

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a long-term relationship between brand and customer as it is portable for both the parties. While
building a long-term relationship with customers ensures a steady stream of income, a consistent
market base and, stability in share market, for the company. For consumers, besides the
utilitarian value of having to dispense with the time and money spend in searching for new
brands, there are other social and emotional values that brands provide. A meaningful
relationship is one where in both the customers and the brand provides value to each other.
Customers view brands as a means of self expression and hence brands need to exploit the idea
by developing closer links with its target audience, who share similar values and beliefs

Loyalty and faithfulness are just one aspect of brand customer relationship and signal a
servile attitude of customers towards brands. This is not always the case, infarct many a times
the relationship between brand and customer is more like that of a friend or an advisor. For
instance Perk, establishes a fun and friendly sort of relationship with its customers. Amicable
Preity Zinta with her usual bubbly self personifies the brand which foodries the tag line 'Kahin
bhi, kabhi bhi'. Kotak finance communicates its accommodating and adaptive advisors' image
through its commercials promising personalized financial advice.
BRAND LOYALITY
All brand marketers want their brands to command a high degree of brand loyalty the
desire of having a large set of brand loyal customers is ultimately linked to long term
profitability of the brand. It is a well-know fact that profits accrue mainly due to repeat purchases
and brand loyal customers are known to make frequent purchases of their favorite brands,
leading to a steady stream of profits from comparatively lesser outlays on advertising and
promotions. But with thousands of brands vying for consumers limited mind space, achieving
this elusive level of brand loyalty seems to be QUITE impossible. Yet brands have large brand
following and in certain cases customers refuse to buy any other brand in case the desired brand
is not available. This chapter examines and analyzes the cause of brand loyalty and the strategy
for and means of nurturing and developing loyalty among consumers

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WHAT IS BRAND LOYALITY
 The term brand loyalty refers to the repeat purchase made by the consumer out of
commitment to the brand.
 Brand loyality is a measure of the attachment that a customer has a brand.

Hierarchy of brand loyalty

At the first level of hierarchy are the brand indifferent or non-committed customers. For
them, the choice of brand simply depends upon price, availability, convenience and even sales
promotions offers. The second level consists of the habitual customers. These are the buyers who
continue to repurchase the brand because it provides at least the basic level of satisfaction and
there is no great incentive for them TO change to a new brand. For example, a habituated
customer goes to the general store every month and buys six bars of Lux Soap, simply because,
the house hold requires six toilet soaps in a month and he/she always buys the same brand of
soap never considering any other brand available at the store.
The third level comprises of customers who are satisfied with their current brand may
incur additional i.e., switching costs (in terms of time and money or functional performance
risk), while shifting to a new brand. Only when the benefits offered sufficiently large to cover
these additional costs, will the customer take the risk of switching to the new brand.
At the fourth level are the customers who are genuinely delighted by the brand. The brand has
delivered more benefits than expected and hence the customer has a reason to give preference to
the brand. The customers linking for the brand has helped build a relationship between the two.
For the delighted customers, the brand is like a friend who can be trusted and relied upon and
switching of brands is like leaving old friends for new ones ; evidently not a very desirable
option.
At the highest level are the devoted customers, who display greatest commitment towards
the brand. For them, the association with the brand is a matter of pride and they usually act as
brand advocates. This set of customers considers the brand as means of self-expression and it
forms a part of their personality. For the company, the devoted customers are like private
marketing and brand building units that actively recommended the brand to fellow consumers.

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BRAND REVITALIZATION
Even the strongest brands loose their sheen, with the passage of time. These brands may
be under performing but not extinct and with a little bit of redirection and refocusing they may
still emerge as a force to reckon with. The effort to infuse a new life into a dying brand is
referred to as revitalization. It is not just an attempt to increase turnover or provide support to the
ailing brand rather it is a sustained effort to increase brand's equity and create a new image and
positioning for the brand it also involves creating a new set of associations and perceptions
regarding the brand expanding brand consumer base.

Trade off between brand revitalization and new brand creations

As is evident, the cost of revitalization is comparatively lesser than that of establishing a
new brand. Also, it requires lesser time to implement and foodries lower risk for example, while
targeting new segments, the emphasis remains on retaining loyal customers, thus making the
entire exercise Jess risky. However, there is a need to be cautious when under taking
revitalization through brand extension, since the action should reinforce or have a positive effect
on the parent brand and should not just exploit its existing (remaining) equity.

HY BRANDS TURN OLD

Like human being, brands also have a life cycle that is they are born (i.e. created/
launched in the market), grow up and reach adulthood, (i.e. growth stage of a brand). Brands
also have a middle age (the maturity period) when the growth has nearly stopped and though the
position is. not bad for the moment, it is well known that the only way is down hill. These
mature brands are big names, well established, having high brand equity but not much scope for
growth. With a bit of introspection redirecting and refocusing the brand can occupy its desired
position in the market and receive the much-required impetus for growth.

20
BRAND REVITITALIZATION SCENARIOS
Revitalization can take place in two scenarios. These are :-
Scenario-l
When the brand to be recreated is practically dead: revitalization process is like
starting from scratch. The only remnant of the past in this case is the basic awareness of the
brand name, which company can make use of. Since most customers would not have any image
or associations with the brand, new associations and images could be created. Thus it is similar
to the launch of a new brand albeit with lower advertising and promotion cost.
Scenario -II

When the brand is under performing but not extinct: In this case the process of
revitalization begins with an understanding of the DNA or core value of the brand, it involves
framework for establishing a vision and mission for the brand as a theme and focus on defining
its intended area of core competence and the values that will build a bond with the customer'. To
establish such a framework a 'bench marking exercise could be undertaken, where the best
practices of any brand either in that category or any other is compiled. Later such practices are
ranked and the key practices that an 'ideal' brand in the category should follow are identified acts
as a benchmark for the brand. Keeping this in mind, possible means of recovery can be found. It
is important to note that in such situations any new image or positioning of the brand should not
be radically different from old one, since there is still high level of brand awareness and a small,
yet loyal customer base, which may become hostile is case of drastic image make over. To
revitalize the brand successfully, the company should use the core brand as a 'source of
symbolization’ and this image should be reflected in the recreated brand. The strategy for
revitalization is based on understanding the brand identity - what it stands for and leveraging it
to relaunch the brand.

21
 INDUSTRY PROFILE
INDUSTRY PROFILE

A dairy is a building used for the harvesting of animal milk—mostly from cows or goats, but
also from buffalo, sheep, horses or camels —for human consumption. A dairy is typically
located on a dedicated dairy farm or section of a multi-purpose farm that is concerned with the
harvesting of milk.

Terminology differs between countries. For example, in the United States, a farm building where
milk is harvesting is often called a milking parlor. In New Zealand such a building is historically
know as the milking shed - although in recent years there has been a progressive change to call
such a building a farm dairy.

In some countries, especially those with small numbers of animals being milked, as well as
harvesting the milk from an animal, the dairy may also process the milk into butter, cheese and
yoghurt, for example. This is a traditional method of producing specialist milk products,
especially in Europe. In the United States a dairy can also be a place that processes, distributes
and sells dairy products, or a room, building or establishment where milk is stored and processed
into milk products, such as butter or cheese. In New Zealand English the singular use of the word
dairy almost exclusively refers to the corner convenience store, or superette. This usage is
historical as such stores were a common place for the public to buy milk products.

As an attributive, the word dairy refers to milk-based products, derivatives and processes, and
the animals and workers involved in their production: for example dairy cattle, dairy goat. A

dairy farm produces milk and a dairy factory processes it into a variety of dairy products.

These establishments constitute the dairy industry, a component of the food industry. Today,
India is 'The Oyster' of the global dairy industry. It offers opportunities galore to entrepreneurs
worldwide, who wish to capitalize on one of the world's largest and fastest growing markets for
milk and milk products. A bagful of 'pearls' awaits the international dairy processor in India. The
Indian dairy industry is rapidly growing, trying to keep pace with the galloping progress around

22
the world. As he expands his overseas operations to India any profitable options await him. He
may transfer technology, sign joint ventures or use India as a sourcing center for regional
exports. The liberalization of the Indian economy beckons to MNC's and foreign investors alike.

India’s dairy sector is expected to triple its production in the next 10 years in view of expanding
potential for export to Europe and the West. Moreover with WTO regulations expected to come
into force in coming years all the developed countries which are among big exporters today
would have to withdraw the support and subsidy to their domestic milk products sector. Also
India today is the lowest cost producer of per litre of milk in the world, at 27 cents, compared
with the U.S' 63 cents, and Japan’s $2.8 dollars.

Also to take advantage of this lowest cost of milk production and increasing production in the
country multinational companies are planning to expand their activities here. Some of these milk
producers have already obtained quality standard certificates from the authorities. This will help
them in marketing their products in foreign countries in processed form.

The urban market for milk products is expected to grow at an accelerated pace of around 33%
per annum to around Rs.43,500 crores by year 2005. This growth is going to come from the
greater emphasis on the processed foods sector and also by increase in the conversion of milk
into milk products. By 2005, the value of Indian dairy produce is expected to be

Rs 10, 00,000 million. Presently the market is valued at around Rs7, 00,000mn.

Indian Dairy Industry- Background

India with 134mn cows and 125mn buffaloes has the largest population of cattle in the world.
Total cattle population in the country as on October'00 stood at 313mn. More than fifty percent
of the buffaloes and twenty percent of the cattle in the world are found in India and most of these
are milch cows and milch buffaloes.

Indian dairy sector contributes the large share in agricultural gross domestic products. Presently
there are around 70,000 village dairy cooperatives across the country. The cooperative societies
are federated into 170 district milk producers unions, which is turn has 22-state cooperative dairy

23
federation. Milk production gives employment to more than 72mn dairy farmers. In terms of
total production, India is the leading producer of milk in the world followed by USA. The milk
production in 1999-00 is estimated at 78mn MT as compared to 74.5mn MT in the previous year.
This production is expected to increase to 81mn MT by 2000-01. Of this total produce of 78mn
cows' milk constitute 36mn MT while rest is from other cattle.

While world milk production declined by 2 per cent in the last three years, according to FAO
estimates, Indian production has increased by 4 per cent. The milk production in India accounts
for more than 13% of the total world output and 57% of total Asia's production. The top five
milk producing nations in the world are India, USA, Russia, Germany and France. Although
milk production has grown at a fast pace during the last three decades (courtesy: Operation
Flood), milk yield per animal is very low. The main reasons for the low yield are
 Lack of use of scientific practices in mugged
 Inadequate availability of fodder in all seasons.
 Unavailability of veterinary health services.

Export Potential for Indian Dairy Products

India has the potential to become one of the leading players in milk and milk product exports.
Location advantage: India is located amidst major milk deficit countries in Asia and Africa.
Major importers of milk and milk products are Bangladesh, China, Hong Kong, Singapore,
Thailand, Malaysia, Philippines, Japan, UAE, Oman and other gulf countries, all located close to
India.

Low Cost of Production: Milk production is scale insensitive and labour intensive. Due to low
labour cost, cost of production of milk is significantly lower in India. Concerns in export
competitiveness are:
1) Quality: Significant investment has to be made in milk procurement, equipments, chilling
and refrigeration facilities. Also, training has to be imparted to improve the quality to bring
it up to international standards.
2) Productivity: To have an exportable surplus in the long-term and also to maintain cost
competitiveness, it is imperative to improve productivity of Indian cattle. There is a vast market

24
for the export of traditional milk products such as ghee, paneer, shrikhand, rasgolas and other
ethnic sweets to the large number of Indians scattered all over the world

According to Directorate General of Commercial Intelligence and Statistics (DGCIS), Kolkata,

India exported dairy products worth US $ 35 million in 2003-04. 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. India’s exports of milk in concentrated and sweetened
form was valued at US $ 2.7 million in 2002 and accounted for a share of 0.15% in Asia’s total
imports (of US $ 1.7 billion). Similarly, India exported whey valued at about US $ 1.2 million in
2002 as against the total Asian import market of US $ 291 million (0.41%). Thus, there are
promising opportunities for exporting dairy products in Asian markets. As regards export
potential of fresh milk and cream (containing fat upto 6%) to Sri Lanka, the study observed that
the import by Sri Lanka was low at US $ 0.21 million in 2002. The total exports of the same
product by India to the whole world were also low valued at US $ 0.08 million, in the same year.
While India’s exports of fresh milk and cream to Sri Lanka was negligible, the imports by Sri
Lanka have been mainly from Australia and New Zealand. However, efforts could be made to
export Indian fresh milk to Sri Lanka taking cost advantages in transportation.

25
 COMPANY PROFILE

COMPANY PROFILE

The Heritage Group, founded in 1992 by Sri Nara Chandra Babu Naidu, is one of the fastest
growing Private Sector Enterprises in India, with four-business divisions viz., Dairy, Retail,
Agri, and Bakery under its flagship Company Heritage Foods (India) Limited (HFIL),
one subsidiary - SKIL RAIGAM POWER Limited. The annual turnover of Heritage Foods
crossed Rs.900 crores in 2009-10 and is aiming for Rs.1100 crores during 2010-11.

Presently Heritage’s milk products have market presence in Andhra Pradesh, Karnataka, Kerala,
Tamil Nadu, Maharastra and Orissa and its retail stores across Bangalore, Chennai and
Hyderabad. Integrated agri operations are in Chittoor and Medak Districts and these are
backbone to retail operations. The state of art Bakery division at Uppal, Hyderabad,
AndhraPradesh.

In the year 1994, HFIL went to Public Issue to raise resources, which was oversubscribed 54
times and its shares are listed under B1 Category on BSE (Stock Code: 519552) and NSE (Stock
Code: HERITGFOOD)

THE FOUNDER CHAIRMAN:

Sri Chandra Babu Naidu is one of the greatest Dynamic, Pragmatic, Progressive and Visionary
Leaders of the 21 st Century.

With an objective of "Bringing prosperity into the rural families through co-operative efforts", he
along with a few like minded, friends and associates promoted "Heritage Foods" in the year 1992
taking opportunity from the Industrial Policy, 1991 of Government of India and he has been
successful in his endeavour. At present, Heritage has market presence in the states of Andhra

26
Pradesh, Karnataka, Kerala, Tamil Nadu and Maharastra. More than three thousand villages and
three lakh farmers are being benefited in these states. On the other side, Heritage is serving
millions of customers needs, employing more than 3500 employees and generating indirect
employment opportunities to more than 10000 people. Beginning with a humble annual turnover
of Rs.4.38 crores in 1993-94, the sales turnover has reached close to Rs.350 crores during the
financial year 2006-2007.

Sri Chandra Babu Naidu was born on April 20, 1951 in Naravaripally Village , Chittoor District,
Andhra Pradesh , India . His late father Sri N. Kharjura Naidu was an agriculturist and his late
mother Smt. Ammanamma was a housewife. Mr. Naidu had his school education in Chandragiri
and his college education at the Sri Venkateswara Arts College , Tirupati. He did his Masters in
Economics from the Sri Venkateswara University , Tirupati. Sri Naidu is married to Ms.
Bhuvaneswari D/o Sri N T Rama Rao, Ex-Chief Minister of Andhra Pradesh and famous Star of
Telugu Cinema. Mrs. N Bhuvaneswari is presently the Vice Chairman & Managing Director of
Heritage Foods ( India ) Limited.

Mr. Naidu held various positions of office in his college and organised a number of social
activities. Following the 1977 cyclone, which devastated Diviseema taluk of Krishna district, he
actively organised donations and relief material from Chittoor district for the cyclone victims.
Mr. Naidu has been evincing keen interest in rural development activities in general and the
upliftment of the poor and downtrodden sections of society in particular.
Sri Naidu held various coveted and honourable positions including Chief Minister of Andhra
Pradesh, Minister for Finance & Revenue, Minister for Archives & Cinematography, Member of
the A.P. Legislative Assembly, Director of A.P. Small Industries Development Corporation, and
Chairman of Karshaka Parishad.
Sri Naidu has won numerous awards including " Member of the World Economic Forum's
Dream Cabinet" (Time Asia ), "South Asian of the Year " (Time Asia ), " Business Person of the
Year " (Economic Times), and " IT Indian of the Millennium " ( India Today).

Sri Naidu was chosen as one of 50 leaders at the forefront of change in the year 2000 by the
Business Week magazine for being an unflinching proponent of technology and for his drive to
transform the State of Andhra Pradesh .

27
 Heritage Slogan

When you are healthy, we are healthy

When you are happy, we are happy
We live for your "HEALTH & HAPPINESS"

MISSION & VISION:

Mission
Bringing prosperity into rural families of India through co-operative efforts and providing
customers with hygienic, affordable and convenient supply of " Fresh and Healthy " food
products.

Vision

 To be a progressive billion dollar organization with a pan India foot print by 2015.
 To achieve this by delighting customers with "Fresh and Healthy" food products, those
are a benchmark for quality in the industry.
 We are committed to enhanced prosperity and the empowerment of the farming
community through our unique "Relationship Farming" Model.
 To be a preferred employer by nurturing entrepreneurship, managing career aspirations
and providing innovative avenues for enhanced employee prosperity.

MILK & MILK PRODUCTS:

28
LIFE CYCLE:

29
OUR COMMITMENTS MILK PRODUCERS:

Change in life styles of rural families in terms of

Regular high income through co-operative efforts
Women participation in income generation
Saved from price exploitation by un-organized sector
Remunerative prices for milk
Increase of milk productivity through input and extension activities
Shift from risky agriculture to dairy farming
Heritage
Financial support for purchase of cattle; insuring cattle
Establishment of Cattle Health Care Centers
Supplying high quality Cattle feed
Organizing "Rythu Sadasu" and Video programmes for educating the farmers in dairy farming

Customers
Timely Supply of Quality & Healthy Products
Supply high quality milk and milk products at affordable prices
Focused on Nutritional Foods
More than 4 lakh happy customers
High customer satisfaction
24 hours help lines ( <10 complaints a day)

Employees
Enhancing the Technical and Managerial skills of Employees through continuous training and
development
Best appraisal systems to motivate employees

30
 Incentive, bonus and reward systems to encourage employees
Heritage forges ahead with a motto "add value to everything you do"

Shareholders
Returns
Consistent Dividend Payment since Public Issue (January 1995)

Service
Highest impotence to investor service; no notice from any regulatory authority since 2001 in
respect of investor service
Very transparent disclosures

Suppliers
Doehlar: technical collaboration in Milk drinks, yogurts drinks and fruit flavoured drinks Alfa-
Laval: supplier of high-end machinery and technical support Focusing on Tetra pack association
for products package.

Society
Potential Employment Generation
more than 3500 employees are working with heritage
more than 9500 procurement agents got self employment in rural areas
more than 5000 sales agents associated with the company
Employment for the youth by providing financial and animal husbandry support for
establishing MINI DAIRIES
Producing highly health conscious products for the society

31
 ORGANIZATIONAL STRUCTURE

MANAGING DIRECTOR

FINANCE DEPARTMENT SALES PRODUCTION PERSONAL DEPARTMENT

DEPARTMENT DEPARMENT

SENIOR ACCOUNTS ASST. GENERAL SUPERVISOR

OFFICER PRODUCTION
MANAGER
MANAGER
JUNIOR ACCOUNTS SENIOR ASST.
OFFICER DEPUTY GENERAL
MANAGER PLANT MANAGER
JUNIOR ASST.
ACCOUNTS OFFICER SALES MANAGER MATERIAL MANAGER

TYPISTS
TYPISTS
CLERICAL STAFF QUALITY MANAGER

PROCESSING
SUPERVISOR

CLERICAL STAFF

32
EXCELLENCE IN QUALITY:

"Certificate ISO -22000"

Food safety policy:
We are committed to procure, process & supply safe and wholesome
milk and milk products to our valued customers through:

Implmentation of food safety management system in raw material

selection.

Continual upgradation of technology, systems and services.

Ensuring best hygiene and sanitation practices by complying with

statutory and regulatory requirements.

Providing resources to achieve measurable objectives through

continual improvement.

Communicating our food safety policy to all our internal and

external customers.

"ISO 9001 certification"

Quality policy:
We are committed to achieve customer satisfaction through hygienically processed and
packed Milk and Milk Products. We strive to continually improve the quality of our
products and services through up gradation of technologies and systems

Heritage's soul has always been imbibed wi th an unwritten perpetual commitment to itself,
to always produce and provide quality products with continuous efforts to improve the
process and environment.

Adhering to its moral commitment and its continuous drive to achieve excellence in quality of
Milk, Milk products & Systems, Heritage has always been laying emphasis on not only
reviewing & re-defining quality standards, but also in implementing them successfully. All

33
activities of Processing, Quality control, Purchase, Stores, Marketing and Training have been
documented with detailed quality plans in each of the departments. Today Heritage feels that the
ISO certificate is not only an epitome of achieved targets, but also a scale to identify & reckon,
what is yet to be achieved on a continuous basis.

Though, it is a beginning, Heritage has initiated the process of standardizing and adopting similar
quality systems at most of its other plants.

PROBLEM AREA:
1. The sales executive of the company are not maintaining good relationship with the customers
2. Customers are having opinion that crates are not cleaning regularly
3. Regular customers are expecting discounts
4. Customers are expecting free bags
5. Customers are saying that curd packets are sometimes having bad smell and it is thin form
SWOT ASSESSMENT OF HERITAGE:

Strengths Of Heritage
1. Strategically located in the heritage
2. Quick availability of raw material
3. Popular brand known from years
4. Milk and milk products are available at competitive prices
5. ability to maintain uniform quality
6. timely delivery
7. new technology implemented for production of milk
8. heritage has very good infrastructure
9. heritage attends to the complaints of consumers immediately
10. heritage pays the highest price for the milk collected from farmers in India and loyalty
among customers for the brand.

Weakness Of Heritage
1. Freezing of marketable area
2. Lack of flexibility in system

34
3. Rivalry among sister unions
4. Government influence
5. Lack of personalize service to channel members
6. High overheads
7. Return are not expected

Opportunities
1. Products at affordable prices
2. Your company has set high standards of quality and safety practices,which gives it an
inherent advantage
3. There is also a constant and conscious effort to add further value to the consumer by offering
new products and better quality of services in the distribution chain.
4. The improvement in the standard of living of consumers and the higher disposable income
has increased the demand for high quality dar\iry products.

Threats
1. Milk being a perishable commodity demands an efficient cold chain management
2. Many new process are being developed to improve the quality of milk so processed and to
extend its shelf life
3. Your company is in the forefront of such initiatives in establishing this infrastructure
4. The industry gas become highly competitive with diverse players

FUNCTIONAL DEPARTMENTS:

Financial
1. Finance Department prepares the budget for expenditure at all levels.
2. Decides and gives the sales targets for all the departments periodically
3. Maintains the books of accounts
4. Collects & deposits the cash received daily through sales in the Co’s bank account

35
Human Resources
1. Human Resource Department Selects & recruits employees through various sources such
as consultancy services, walk-ins, Referrals, Campus recruitment etc
2. Trains & develops employees through its own specialized training centre known as
Gurukul.
3. Motivates all employees to perform to their best through various monetary and non-
monetary rewards.
4. Regular and periodic performance appraisal of all the employees is conducted and
suitably rewarded.

Marketing
1. Marketing Department Designs creative and attractive advertisements through which the
company’s products can be promoted to the customers.
2. Decides the different marketing channels to be used to increase the sales.
3. Creates a very pleasant and feel good environment in the Store to attract more customers
4. Also responsible for the arrangement of products in each department to help easy
availability of products to the customers.

36
Recognitions
Heritage Foods is proud to have been recognized by some of the most important and
influential publications and organizations around the world.

Heritage Foods Bags "Golden Peacock Award for Excellence in Corporate Governance' for the
year 2016"Heritage Foods Limited has been declared as the Winner of 'Special Commendation'
for 'Golden Peacock Award for Excellence in Corporate Governance'

The above award was received by Smt. N Bhuvaneswari, Vice Chairperson & Managing
Director of the Company from M/s. Baroness Sandip Verma, Global Chairperson, Advisory
Council, Institute Of Directors, India and Chairperson, European External Affairs Committee, at
a specially organized "Golden Peacock Awards Nite" presentation ceremony was held on
Tuesday, 18th October 2016, at Millennium Hotel London Mayfair, 44 Grosvenor Square,
London W1K 2HP, UK, in the presence of (from Left to Right) Vijay Karia, Chairman &
Managing Director, Ravin Group of Companies, India, Stephen Haddrill, Chief Executive,
Financial Reporting Council, UK and Lt. Gen. J. S. Ahluwalia, PVSM (Retd.), President,
Institute Of Directors, India, along with distinguished business leaders from INDIA & UK,
during IOD India's "16th London Global Convention on Corporate Governance & Sustainability"
and Global Business Meet.

100 Most Innovative CIO's of IndiaMr. K.Rajababu, Head-Information Technology, Dairy

Division of the Company is among those conferred with the "100 Most Innovative CIO of India"
by The World CSR day (www.indiasgreatest.com), Mumbai. The World CSR Day aims to
recognize Great Leaders across leadership levels in individual within an organization that aim
at believing the excellence is infinite and perfection has no limit and targets are milestones not an

37
end of the journey. The CIO Excellence Awards is the highest recognition to an individual
because they believe that perfection has no limits.
The criteria and competencies benchmarked for selection of 100 most Innovative CIO of India
are: -
 Strategic Perspective
 Track Record
 Continuous Innovations
 Effective Use of Technology
 Integrity and Ethics
 Thought Leadership

100 Most Influential CFO's of India Mr. A. Prabhakara Naidu,Chief Financial Officer of the
Company is among those conferred with the "100 Most Influential CFO's (Chief Financial
Officers) of India" title by the London-based Chartered Institute of Management
Accountants(CIMA).
 Mr. A. Prabhakara Naidu, finds a place on the elite list of CIMA, which is the largest
management accounting body in the world, with more than 2,03,000 members in 179
countries. The CIMA award, which was conferred at the 2016 CIMA Annual Awards
Ceremony held in Mumbai on June 23, 2016, is in recognition of the CFO of the
Company "commitment and exceptional performance done by him in the field of
Finance."
 The award has been instituted by the CIMA to acknowledge CFOs with a proven track
record of performance, achievements and contribution to the business.

Heritage has won 4 awards in "The Great Indian Icecream Contest", New Delhi It was indeed a
great pleasure that Heritage has won 4 awards in different categories in "The Great Indian

38
Icecream Contest" 5 th Edition held on 11 th Feb 2016 conducted by Indian Dairy Association
and DUPONT at New Delhi.
 The Silver Award for VANILLA i.e 2 nd prize on All India wide
 The Silver Award for CHOCOLATE i.e 2 nd prize on All India wide
 The GOLD AWARD in Kool Kids i.e 1 st prize on All India wide
 The BEST IN CLASS in Kool Kids i.e Award for Excellent product
In recognition of our efforts the Ministry of Energy, Government of India, has awarded Heritage
the First Prize for 'Conservation of Energy in Dairy Sector' several times - the years 2016,2015,
2014, 2012, 2010 and 2008.
1st Prize in National Energy Conservation Awards-2016

1st Prize in National Energy Conservation Awards-2015

2nd Prize in National Energy Conservation Awards-2015

National Energy Conservation Award 2014

National Energy Conservation Award 2012
National Energy Conservation Award 2010
National Energy Conservation Award 2008

Bagged the "Coca Cola Golden Spoon Award" 2015 & 2016 for its retail business division. The
annual 'COCA COLA Golden spoon awards' are well-established and highly regarded within the
industry as a mark of exceptional performance.

39
Listed among India's prestigious Top-500 companies list for the year 2013 & 2014, compiled by
The Economic Times, on the basis of industry respect and key financial parameters.

Images Most Admired Retailer of the Year - 2014 (Category Food & Grocery)
Awarded the "Most Admired Retailer of the year - 2014" (Food & Grocery) at India Retail
Forum.

Fortune List of 50 Most Powerful Business Woman

N. Bhuvaneswari, Vice Chairperson & Managing Director, was placed in the list of Fortune-50
Most Powerful Business Women in India for the year 2013.

40
CSR Activities
Heritage Foods Limited works with a registered trust i.e. NTR Memorial Trust, Hyderabad
towards promoting education, enhancing vocational skills and supply of clean water. These
projects are in accordance with Schedule VII of the Companies Act, 2013 and the Company's
CSR Policy read with Companies (Corporate Social Responsibility Policy) Rules, 2014.
Company has built the "Academic Block" at "NTR Junior College" for Girls, Gandipet Campus,
Hyderabad from the CSR funds of the Company and the block has been inaugurated by Sri D
Seetharamaiah, Chairperson of the Company on 19th August, 2016 in the presence of the
Directors of Heritage Foods and other officials of NTR Memorial Trust.

DETAILS OF MARKETING:

Marketing is so basic that it cannot be considered as a separate function. It is whole business

seen from the point of view of its final result that it is from the customer point of view business
success is not determined by the producers but by the customers.

The above statement by peter F. Drucker clearly puts forth the importance and insensibility of
marketing the overall functioning of the organization normally ,marketing can be identified as a
business function that identifies unsatisfied needs and wants, defines and measures their
magnitude, determines which target markets the organization can best serve, decide as
appropriate product, services and programs to serve these markets and calls of every one in the
organization to “Think and serve the customers”.

Marketing is no longer “The art of selling what you make, but what to make “it has been rightly
said that while great devices have been made in the marketing department.
To achieve the desired objectives in marketing a set of marketing tool are utilized marketers,
marketing mix is the set of marketing tool s that firm uses to pursue its marketing objectives in
the target market. Marketing mix consist of every thing the form can be collected in to group of
variables known as 4’p’s as proposed by M.C.Carthy ‘product, piece, place, and promotion.’

41
According to professor clerk & clerk “Marketing consists of these efforts which effects transfer
in the ownership of goods and services and which provide for their physical distribution“.
Production and marketing are the two pillars of an efficient economy, which are linked by the
powerful belt of marketing.

Company’s primary task is” to create customers “. But today’s customer face a vast array of
product and brand choices prices, and suppliers.

We believe that customer estimate which offer will deliver the most value. customer are value-
maximizes, within the bonds of search costs and limited knowledge ,mobility and income .They
form an expectation of value and act on it .Then they learn whether the offer lived up to the value
expectation and this affects their satisfaction and their repurchase probability.

Modern marketing begins with the customer, not with production cost, sales, technological land
marks and it ends with the customer satisfaction and social well being .under the market driven
economy buyer or customer is the boss.

BOARD OF DIRECTORS:

Sri D. Seetharamiah, Chairman

Sri K. Kannan, Director
Dr. A. Appa Rao, Director
Dr. V. Nagaraja Naidu, Director
Dr. N. R Sivaswamy, Director
Smt N. Bhuvaneswari, Vice-Chairman & Managing Director

42
CORPORATE MANAGEMENT TEAM:

Dr. M. SambaSiva Rao, President

CA A Prabhakara Naidu, Sr General Manager - Finance & Accounts
Umakanta Barik, Company Secretary
K Durga Prasada Rao, Chief Operating Officer - Dairy Division
S Jagdish Krishnan, Chief Operating Officer - Retail Division
Anil Kumar Srivastava, Chief Operating Officer - Agri Business Division

COMPETITORS:
1. VIJAYA MILK
2. JERSEY
3. SANJAM
4. VAISHNAVAI
5. MOTHER
6. THIRUMALA
7. JYOTHI
8. VISHAKA
9. MASQATI
10. MUKUNDA

43
 DATA ANALYSIS & INTERPRETATION

QUESTION NO. 1

How many liters Milk you use per day?

TABLE:
Options No. of respondents Percentage

0.5 litres 29 29

1 litre 39 39

1.5 litres 13 13

2 litres 19 19

GRAPH:

No. of respondents

19%
29% 0.5 litres
1 litre
13%
1.5 litres
2 litres

39%

INTERPRETATION:
From this I can analyze that, majority of respondents i.e., 39% respondents say they use 1 litres
milk per day.
QUESTION NO. 2

For how long you are using the particular brand?

44
TABLE:
Options No. of respondents Percentage

From last 2months 11 11

2 to 6 months 30 30

6 months to 1 year 24 24

1 to 2 years 20 20

Above two years 15 15

GRAPH:

No. of respondents From last

2months
Above two 11%
years
15%

1 to 2 years 2 to 6 months
20% 30%

6 months to 1
year
24%

INTERPRETATION:
From this I can analyze that, majority of respondents i.e., 30% respondents say they were using
the brand from 2 to 6 months.

QUESTION NO. 3

The reason for using particular brand?

TABLE:
Options No. of respondents Percentage

45
 Price 15 15

Quality 50 50

Brand 20 20

Service 15 15

GRAPH:

No. of respondents

15% 15%

20% Price
Quality
Brand
50%
Service

INTERPRETATION:
From this I can analyze that, majority of respondents i.e., 50% respondents say quality is the
reason for using particular.

QUESTION NO. 4

Through whom or which media was made known to you?

TABLE:
Options No. of respondents Percentage

Advertising 50 50

Agent 11 11

46
 Family members 25 25

Friends 14 14

GRAPH:

No. of respondents
Advertising Agent Family members Friends

14%

25% 50%

11%

INTERPRETATION:
From this I can analyze that, majority of respondents i.e., 50% respondents say advertisement is
the media which make them to know about Heritage.

QUESTION NO. 5

How do you feel Heritage products ( Other than Milk ) are priced?
TABLE:
Options No. of respondents Percentage

Low 25 25

Reasonable 50 50

High 15 15

Very high 10 10

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GRAPH:

No. of respondents
Very high
10%

Low
High 25%
15%

Reasonable
50%

INTERPRETATION:
From this I can analyze that, majority of respondents i.e., 50% respondents say price of the
Heritage products are reasonable.

QUESTION NO. 6

Do you have Heritage monthly card?

TABLE:
Options No. of respondents Percentage

Yes 55 25

No 45 75

GRAPH:

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 No. of respondents

No
45%

Yes
55%

INTERPRETATION:
From this I can analyze that, majority of respondents i.e., 55% respondents say they have
Heritage monthly card.

QUESTION NO. 7

What purpose you are using Milk?

TABLE:
Options No. of respondents Percentage

Coffee/Tea 38 38

Drink 2 2

Curd 15 15

Butter 8 8

All 37 37

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GRAPH:

No. of respondents

37% 38% Coffee/Tea

Drink
Curd

8% Butter
15%
All

2%

INTERPRETATION:
From this I can analyze that, majority of respondents i.e., 38% respondents say they use the milk
for the purpose of tea/coffee.

QUESTION NO. 8

In absence of Heritage brand which other brand you prefer to purchase?

TABLE:
Options No. of respondents Percentage

Vijaya 38 38

Tirumala 15 15

Mother Dairy 11 11

Jersey 32 32

Others 4 4

GRAPH:

50
 Others No. of respondents
4%

Vijaya
Jersey
38%
32%

Mother Dairy Tirumala

11% 15%

INTERPRETATION:
From this I can analyze that, majority of respondents i.e., 38% respondents say in the absence of
Heritage milk they prefer to purchase Vijaya milk.

QUESTION NO. 9

Any plans to shift Heritage Dairy Milk?

TABLE:
Options No. of respondents Percentage

Yes 11 11

No 69 69

Not sure 20 20

GRAPH:

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 No. of respondents

11%
20%

Yes
No
Not sure

69%

INTERPRETATION:
From this I can analyze that, majority of respondents i.e., 69% respondents say they have no plan
to shift the Heritage Dairy milk.

FINDINGS

The below given findings are based on the survey conducted on the sample of 100 respondents
belonging to different sex, age etc.
 39% respondents say they use 1 litres milk per day.
 30% respondents say they were using the brand from 2 to 6 months.
 50% respondents say quality is the reason for using particular.
 50% respondents say advertisement is the media which make them to know about
Heritage.
 50% respondents say price of the Heritage products are reasonable.
 55% respondents say they have Heritage monthly card.
 38% respondents say they use the milk for the purpose of tea/coffee.
 38% respondents say in the absence of Heritage milk they prefer to purchase Vijaya milk.
 69% respondents say they have no plan to shift the Heritage Dairy milk.
 Most of the customer use to buy vijaya & jersey milk earlier.

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  Due to low quality customers shifted to Heritage, hence company should maintain
properly.

CONCLUSION

 Most of the customers are using the Heritage milk from last 6 months. Hence there should be
more improvement in making aware of the product.
 The quality of the Milk and Milk products are excellent in the most of the customers view.
 Most of the customers are not aware of all the Heritage dairy products and parlors.
 Most of the customers are satisfied with the price offered by the Heritage.
 Most of the customers are expecting more from our company like promotional strategies.

SUGGESTIONS

 Company should improve its quality and it should offer its products with affordable prices.
 Deliver the Heritage Milk & Milk products within time that is the one of the key aspect for
increasing the market share.
 Make sure that all products of Heritage available at ease in all store.

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 Concentrate on the brand building.
 Generate full awareness about all Heritage Milk verities. i.e., toned milk, double toned milk,
full cream milk, golden cow milk and skim milk.
 Company should concentrate on leakage of milk and curd.
 Company should concentrate on quality of curd because sometimes it smells bad.
 When new product enters into the market it should be informed to regular customer.
 Complaints are not been rectified quickly, so Company should care about customers and
retailers complaints.

BIBLIOGRAPHY

1. INTERNET:
 WWW.GOOGLE.COM
 WWW.WIKIPEDIA.COM
 WWW.SOCIALRESEARCH.NET
 WWW.MANAGEMENTSEARCH.COM
 WWW.SCRIBD.COM
 WWW.HERITAGEFOODS.CO.IN
2. REFERENCE BOOKS:
 C.R.Kothari, 2008, Research Methodology
 Philips Kotlar, 2008, Marketing Management

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QUESTIONNAIRE

Dear Sir/Madam
I am a student of MBA of NIBM PG College as a part of our curriculum activity I have
taken up A STUDY ON “ BRAND AWARENESS TOWARDS HERITAGE FOOD
PRODUCTS” conducted on behalf of Heritage Diary.
I kindly request you to spend few minutes to answer the following,
Date……………
1. Name: _____________________________________
2. Address:____________________________________
3. How many liters Milk you use per day?
A) 0.5 litres ( )
B) 1 litre ( )
C) 1.5 litres ( )
D) 2 litres ( )
4. For how long you are using the Heritage product?
A) From last 2months ( )
B) 2 to 6 months ( )
C) 6 months to 1 year ( )
D) 1 to 2 years ( )
E) Above two years ( )
5. The reason for using particular brand?
A) Price ( )
B) Quality ( )
C) Brand ( )
D) Service ( )

6. Which is the other brand you use to buy earlier?

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 A) …………………………………..
7. The reason for shifting from the earlier brand?
A) ……………………………………
8. Through whom or which media was made known to you?
A) Advertising ( )
B) Agent ( )
C) Family members ( )
D) Friends ( )
9. How do you feel Heritage products ( Other than Milk ) are priced?
A) Low ( )
B) Reasonable ( )
C) High ( )
D) Very high ( )
10. Do you have Heritage monthly card?
A) Yes ( )
B) No ( )
11. What purpose you are using Heritage Milk?
A) Coffee/Tea ( )
B) Drink ( )
C) Curd ( )
D) Butter ( )
E) All ( )

12. In absence of Heritage brand which other brand you prefer to purchase?
A) Vijaya ( )
B) Tirumala ( )
C) Mother Dairy ( )
D) Jersey ( )
E) Others ( )

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13. Any plans to shift Heritage Dairy Milk?
A) Yes ( )
B) No ( )
C) Not sure ( )

Thank you (Signature)

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