INTRODUCTION

A customer gets an idea about buying a product actually buys it after relevant
considerations and uses of it. And based on the experience derived out of the
consumption process he begins the cycle again. The marketer must understand the
process since knowledge of the process will enable him to plan his marketing effort.
In this chapter the researcher made an attempt to study the theoretical concept of
Brand, Brand name, Brand Preference, Consumer Preference, Consumer Buying
Behavior and the Process of Buying Decision.
BRAND
A Brand is a name, term, symbol or design or a combination of them, which is
intended to identify the goods and services of a seller or a group of sellers and to
differentiate them from those of competitors.
Classification of Brands
 Family Brand
A single brand name for all the products of a company and which are being similar
in quality.
 Individual Brand
Brand name is given for each variety of products and each product of same
producer will carry its own brand used for dissimilarity.
 National Brand
The same brand used on the national level manufacturers brands are
commonly termed as national level.

 Private Brand
Large wholesalers and retailers operation over regional or national market and
placing their own brand on the products that they market. These brands offered by
wholesaler and retailer are usually called private Brand.

 Umbrella Brand
All products having the name of the company or manufacturer is called the
umbrella brand.

Brand Mark

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 “A brand mark is that part of brand which appears in the form of a symbol or
design or distinctive coloring or lettering. It is recognized by sight but is not
expressed when a person pronounces the brand name.

Brand Preference
Based on the previous experience with the product consumer will choose it
rather than competitors of its availability. Companies with products at the brand
preference stage are in favourable position in competition their industry since the
brand preference results in brand loyalty companies more market share.

Types of Preferences

The target audience might like the product but not prefer it to others. The
following are the types of preference.
1. Homogeneous Preferences
A market where the entire customer have roughly the same preference. The
market shows no natural segments. We would predict that existing brands would be
similar and cluster around the middle of the scale in both sweetness and creaminess.

2. Diffused Preferences
At the other extreme, customer preferences may be scattered throughout the
space, indicating that customer vary greatly in their preferences. The first brand to
enter the market is likely to position in the center to appeal to the most people. A
brand in the center minimizes the sum of total customer dissatisfaction. A second
competitor could locate next to the first brand and fight for market share or it could
locate in a corner to attract a customer group that was not satisfied with the center
brand. If several brands are in the market, they are likely to position throughout the
space and show real difference to match customer preference differences.

3. Clustered Preferences
The market might reveal distinct preference clusters called natural Market
Segments. The first firm in this market has three options. It might position in the
center hoping to appeal to all groups. It might position in the largest market segment.
It might develop several brands, each positioned in a different segment if the first firm
2
developed only one brand and competitors would enter and introduce brands in the
other segments.

4. Heterogeneous Preferences
Customer preference heterogeneity perhaps the most important reason for
segmenting in customer preference. Taste and preferences differ among people. Some
people are highly concerned about the appearance of a product, whereas others are
more concerned about functionality. As preference heterogeneity increase the case for
segmentation increases in strength moreover; the greater the variability the large the
number of profitable segments present in a market.

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 IMPORTANCE OF BRANDING
Producers Benefit
 Brand enables a firm to build reputation.
 It is a device by which a good image and goodwill are established.
 It facilitates introduction of new products, in a simplified process.
 It distinguishes products from rival firms and thus ensures constant returns.
 It is essential for sales promotion and building a demand.
 It widens the market, through demand creation.
 It helps in reducing advertising cost.
 It brings repeated sales.
 It reduces the need for price comparison.
 Individuality of a product is established.

Wholesaler/ Retailers Benefit

 They require less time to get sold.
 Branded products pose less risk.
 There is an established demand.
 Branding aids in advertising and display programmes.
 Branding assists in increasing control over the market.
 Branding reduces the price comparisons and helps to stabilize price.

Consumers Benefit
 There must be widespread supply of the products.
 The quality and standard of the products must be maintained regularly.
 Enforcement of product identification and differentiation by brands must be
strictly adhered too.
 Brand must carry through product to the ultimate consumer, to be more
effective.
 Product must have distinctive and special approach. Brand distinguishes and
differentiates the products of different producers.
 Identification is possible through brands; consumers are at ease while
shopping.

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 SELECTION OF THE ORGANIZATION

Foods, Fats and Fertilizers Ltd, Tadepalligudem are a family owned Organization. It
is well known as “foods, fats”. But the West Godavari farmers call it is a “Tavudu
Factory”. This organization is professionally carrying the business activity by the
Goenka family. It is having branches in Madras, Bombay, Hyderabad, Kakinada,
Calcutta and Baroda.

Foods, Fats and Fertilizers Ltd, Tadepalligudem, West Godavari district was
conceived in 1959, born in 1960 and was on its feet by 1962. Today foods, fats and
fertilizers Ltd has matured into a conglomeration of 20 industrial units spread over 40
acres constantly buzzing with activity and providing employment to over 630 persons.

Foods, Fats and Fertilizers have completed 40 years of existence where it has
seen lots of ups and downs.
As the company has incorporated its name as Foods, Fats and Fertilizers Ltd,
it has given 3F as the brand name to all the products it produces. The wheel of the
fortune has turned a full circle for Mr. B.K.Goenka, the architect of Foods, Fats and
Fertilizers Ltd. Born and Bred in Burma the Goenka family established and respected
in industry and trade.

They had a flourishing textile business and a large rice mill. The rice bran
from Mr. Goenka’s mill was avidly sought as animal feed and his observant eyes used
to notice thin deposit of oil in the wrapping papers used for sampling could this oil be
extracted? What would be its quality? These questions had to wait because in 1942
the Japanese invaded Burma and Mr. Goenka had to abandon his business and return
to India.

Being an optimist, he transformed the adversity into opportunity by this got

and determination. After brief spell in his native land in Rajastan, his restless
enterprising zeal brought, Mr. Goenka to madras in 1943 where he is with his
brothers, started export of handloom fabrics. In due course he established a large
textile business.

5
 NEED FOR THE STUDY

The present study is undertaken to understand the impact of customer services

provided by 3F Industries Ltd. The study will be helpful in finding out the profile,
preferences, perception and satisfaction level of the customers who visit the 3F Oils
Tadepalligudem, West Godavari District, Andhra Pradesh.

 The study was aimed at measuring the customer’s satisfaction level towards
customer preference..
 The study may help the company to device new strategies.
 The study will also help the company to know about the demographics of the
customers and their respective choices for products.

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 . SCOPE OF THE STUDY

The scope of the study is to find out the Customer Brand Preference in 3F
Industries Limited. The study mainly focuses on the various aspects influencing the
marketing strategies of the company. This study is relating to Customer brand
preference elements of total marketing efforts. It will cover mainly brand
equity,pereceived quality, brand awareness brand loyalty.This topic has studied in
food sector in world and Indian industry. Leading companies of 3F Industries Limited
have been selected on the basis of their market share for the research study and their
comparative study has been carried out .The scope of the study as per the topic is
sufficient enough to meet the requirement of research study. There is a big demand
for the manufacturing and supply of oil products at the global level.

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 OBJECTIVES OF THE STUDY

 To understand the factors influencing purchase decision for edible oils.

 To know the customer satisfaction & status influence on buying the 3F Oil
products.
 To identify the buying and consumption patterns of the product.
 To understand the frequency of changing edible oil type.
 To analyze the effect of promotional activities on purchasing habits.
 To find the extent of brand loyalty among consumers.
 To determine the consumers’ perception on the taste, price, quality, brand etc.

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 METHODOLOGY OF THE STUDY

Methodology is a systematic procedure of collecting information in

order to analyze and verity a phenomenon. The collection of information has been
done by

1. Primary Data

2. Secondary Data

1. Primary Data
The primary data are those which are collected and for the first time and thus
happen to be original in character. A simple random sampling method was adopted to
conduct the study. The sample consists of 100 in number.

2. Secondary Data
It is the information collected from already published sources. The
sources that have been used for this data collection are Magazines Text books on
marketing and edible oil industry.

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 LIMITATIONS OF THE STUDY
The present study entitled—“A study on Consumer Brand Preference of 3F
Industries Limited is mainly consists to the evaluation of marketing aspects of the 3F
Industries Limited. The coverage of the study is limited to the problems and prospects
of 3F Industries Limited.

 The period of study is limited.

 The 3F Industries Limited is a private’s organization maintains secrecy. So is
become difficult to collect all the necessary information related to the
marketing activities.
 Despite of the employees are good and cordial they are unable to spend their
valuable time because they are busy with their work.
 The study is only limited to a marketing aspect of the company.
 The study is based on primary data.
 The respondents may not respond to some typical questions in the
questionnaire.

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 CHAPTERISATION

 The project has been organized into five chapters.

 The First Chapter introduces the concept of Compensation Management in
Bharath Sanchar Nigam Limited (BSNL), need, scope objectives,
methodology limitations and chapterization.
 The Second Chapter presents the appropriate Review of literature.
 The Third Chapter describes the profile of Industry and Company.
 The Fourth Chapter presents of the data and interpretation.
 The Fifth Chapter presents the Findings, Suggestions and Conclusion

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 INDUSTRY PROFILE

In the Indian context, the term ‘Vegetable Oils’ is almost synonymous with
‘Edible Oils’ and land is not used as cooking media. However it is important to keep
this distinction in mind not all Vegetable Oils are Edible - Some including castor oil
are mostly non-edible and some of the edible oils like Ground Nut and Coconut are
finding increasing industrial applications as in cosmetic, soap making etc.

By virtue if they’re high nutritive content, Edible oils from a major source of
nutrition. The body as a vehicle for carrying vitamins requires the fatty acids in Edible
Oils provide oil cakes, which are by-product of the oil extraction process, are
important source of animal nutrition. These can be processed in to Edible flavors,
which are rich in proteins.

Oil seeds occupy an important position as the agriculture map pf and rank
second after food grains as a farm commodity crop. India accounts for a tenth of the
world output of Vegetable Oils and fats. It is the largest producers of Ground Nut,
rapeseed, mustard and sesame, second in respect of castor seeds, third in coconut,
fourth in cotton seed and fifth in line seed.

Our country has a highly developed oil based industry. Providing gainful
employment to nearly 15 million persons besides another half a million engaged in
milling and processing units. It is essential a food-oil industry accounting for four
fifths of the total supply of Vegetable Oils. Soap paints and varnish industries from
the bulk of non-food applications.

In spite of their national importance, production of food grains has been

suffering a negative growth rate all these years. Only during the first plan period, the
Targets set for production were realized after this no impressive achievement was
recorded.

The main contributory factors are twofold, first only marginal land, in rain fed
areas is being used for their cultivation resulting inevitable in low productivity,
second agriculture in India is still subject to the vagaries of monsoon, which makes
for erratic production. It is little wonder therefore that the annual rate; of growth of

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oil-seed production for the decade 1965-1976 was a mere 1.2 percent while that of oil
seed productivity, an equally dismal one percent.

Viewed in the global context, India has the dubious distinction of having the
highest acreage under oil seeds and recording the highest output, and yet showing the
lowest yield, at 736 kg. India’s yield per hectare is lower than that of Nigeria (1615.38
Kg) U.S.A. (91474.58 Kg), Argentina (1153.49 Kg.) and China (1148.55 kg.) The
following table would give picture of Indian’s placing in the world settings.

For the year 1980-81, target for oil-seed production had been fixed at 11
million tones, actual production however lagged behind, with; provisional estimates

Placed at 10.2 million tones. Production of live major oil seeds viz./
groundnut, rare seed mustard, sesame, line seed and castor seed and is estimated to be
around 90 lakes tones, which is about 13 percent higher than the previous year’s
production. Production estimates of groundnut at 57 lake tones however show decline
of 70,000 tones. At 2 lack tones castor seed production has also registered a decrease
of 30,000 tones. Rapeseed, sesame and line seed have however, registered increase
over the previous year’s production levels.

The central Government therefore took various measures to increase

production of oil seeds. A centrally sponsored scheme for an intensive oil seed
development programmed was operated in 14 states with a coverage target 40.6 lakes
hectors under a liberalized pattern of central, assistance. However actual coverage
was only 36 lake hectares and the short fall was attributed to serve drought conditions
in several states during the kharif season.

Short falls in production persisted in the oil year 1981-82 as well. As a result,
domestic industry could not meet the consumption needs respect of edible oils. The
total edible and supplies from indigenous sources were estimated at about 30 lake
tones in 1981-82 (which however higher than the previous year’s levels of 25 lakes
tones). The gap of 10 lake tones had to be filled only through imports. Consequently,
the state-trading corporation was asked to import a million tons of Edible Oils during
the oil year 1981-82. The allotment of imported Edible Oils was also pruned in a bid
to ensure more supplies through fair price shops.

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 The trend of imports in expected to continue in the year to come despite the
best efforts of the union agriculture ministry to raise oil seed output. The genera-based
international trade center has projected import f 13 million tons of Vegetable Oils in
1985. As for exports, it is anticipated that India would export 15 Lake Tones of oil
equivalent of handpicked-selected groundnut, other nuts and castor oil by 1985.

The composition of our exports is expected to undergo a change palm oil and
products (palm oil and FBD palm oil) will in further account for an increasing share
of Indian exports soybean oil and rapeseed oil will continue to be imported through
their combined share may fall to about one third of the total imports refined rapeseeds
oil could be the cheap oil for the liquid market while soybean oil is expected to the
supplied to the vanaspathi industry. Regarding production of oils, an increase in the
production of solvent extracted oils such as rice bran oil tree oils in lightly to occur
the ITC reports says that the country could make significant investments in view of
it’s resource for this oil and the demand for Edible Oils. The report has also forecast a
rise in the de oiling of groundnuts cake and other sun cakes the country could also
produce 4.5 lakes of tones seed oil per year.

PROFILE OF THE OIL INDUSTRY:

The power and strength of the company depends on how strong and secure it is on the
food front. In trying to achieve this goal, the oil seed scenario in the country has
undergone a substantial charge during the past few years. The country is moving away
from a situation of scarcity and huge import bills to one of self-sufficiency and
possibly even export of vegetable oils.

India ranks high among the oil seeds producing countries in the world with perhaps
the largest number of commercial varieties of oil seeds such as ground not, rape and
mustard, sesame, kardi seed, nigerseed, soya beans, sunflower seeds, linseed, castor
seed, copra, cotton seed and a number of minor seeds of tree origin oil seeds takes
their place, as the second largest agricultural crop, next only to food grains. The
cultivation of oil seeds in India is spread over various states with a distinct regional

14
pattern covering about 19 to 20 million hectares, which accounts for about 11 percent
of the total land under cultivation in the country.

In India where fats of animal origin such as fish oil are seldom used as cooking
media. The term “vegetable oils” is used as a synonym for “edible oils”. However, it
needs to be recommended that there are, on the one hand vegetables oils such as
castor, groundnut and coconut oils, which are finding increasing. Industrial
applications such as in cosmetics, soap making etc… edible oils are a major source of
nutrition for the people in the country. Oil cakes that are by-products of the oil
extraction process are an important source of animal nutrition. They can also be
processed in to protein rich edible.

India has a highly developed oil based industry employing more than 15millon
persons. However, it remains essentially food oil. The industry is accounting for as
much as 83% of the total supply of vegetable oil in the country. The major non-food
users of oil are soap, paint and varnish industries.
Faced with major demand for their conventional products, FMCG majors have been
planning their hopes on branded staple foods to deliver rapid top line extension.
Negative growth in the oils and fats business has been instruments in restraining top
line growth for the FMCG.

PRODUCTS:
Broadly, edible oil or fat products can be categorized as fallows.
a. Vegetable refined oil
b. Hydrogenated oil
c. Bakery fats
Expelled ground oil of good quality can be directly consumed. It can also be refined
to have higher purity other oils such as soya has to be refined to make them edible.

Vanaspathi is obtained by hydrogenation of edible oil. It is used as a suitable for ghee

by some segments of sources and also for making sweets, snacks including biscuits,
cakes etc…

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CONSUMER AWARENESS AND PENETRATION:

Among FMCG products, edible oils has one of the highest penetration of 98% in
urban as well as in rural areas penetration of all these 3 cooking medium is very high
at 99.8% in urban areas as well as rural areas.

Vanaspathi penetration averages 17.4% at all India level, significantly higher at

28.8% in urban areas and 13% in rural areas. It is highest in medium size towns of
0.5-1mm population of 34.3% in metros and towns.
In metros refined edible oil is a relatively popular cooking medium. The per capita
vegetables oil consumption in the country was 7.6kg p.a in 1997-98, significantly
lower than 8.5 kg p.a during 1996-97.

CONSUMER HABITS AND PRACTICES:

Edible oil is one form or other is consumed is almost every household, and
Indian food habits show a strong preference for fried vegetables and several other
fixed snacks.

Traditionally the north and west have been milk surplus regions in the
country. This has led to surplus ghee production in these areas and higher ghee
consumption. The lower ends of the society, which cannot afford ghee, consume
vanaspathi.

Sweetmeat makers in the unorganized sector, particularly in the north

represent one of the largest user segments for vanaspathi.

In the south there has been abundant availability of edible oils, namely
coconut oil, ground nut oil, sunflower oil etc. This had led to different consumer
habits southern consumer prefer refined oil cooking medium as compared to ghee or
vanaspathi. Similarly the eastern region, which is milk deficient, has preference for
vegetable oil as cooking medium.

16
 There are also regional and cultural differences in the type of edible oil used
for cooking. For instance kerala uses more of coconut oil for cooking. Sesame oil is
widely used in the north, mustard oil in the north and east while there is an over
whelming preference for groundnut oil is in the west.

Most consumers, especially in the rural areas buy edible oil in loose form.
Where as in large metros loose oil is scarcely available as retailers find it difficult to
handle the same. In medium sized towns, loose as well as branded oil is available.

In the last few years popularity of branded oil has been increasing particularly with
the introduction of low cost poly packs with the government ordering compulsory
packaging of edible oil in the wake of dropsy deaths in the country due to use of
adulterated mustard oil, the wage of branded oils is expected to witness phenomenal
growth.

India accounts for 9.3% of world oil seed production. It has the world’s fourth largest
edible oil economy. In 1999, India ranked as the world’s largest importer of edible
oils, displacing china. The bulk of edible oil, India imports under the open general
license is RBD palmolein of Malaysian and Indonesian origin.

India is one of the worlds leading producer of oil seeds and oil, contributing to 9.3%
world oil seed production. It produces the largest number of commercial varieties of
oil seeds over nearly 28.4 million hectares of land. The major edible oils produced in
India are ground nut, rapeseed, soya, cottonseed, sesame seed, castor seed, sunflower
seed, etc. Groundnut was the most widely consumed and traded edible oil determining
edible oil economics, but is now being displaced by others. India is the world’s
second largest production of groundnut, next only to china. The govt. has set up a
technology mission on oil seeds, to increase production of other oil seeds and oil and
to reduce dependence on imports.

The strategy followed was to

 Increase productivity with better inputs and practices
 Increase area under oil seed crop

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  Encourage winter oil seed crops.

This led to a sharp increase in oil seed production driven mainly by rapeseed,
sunflower, castor seed and soya. India is today the world’s third largest producer of
rapeseed and cottonseed and the largest producer of caster seed.

India has approximately 300 edible oil refining units, 60-70% of which are in the
small scale unlike the bigger refiners, the smaller one are unable to important huge
quantities of crude either low capacity or lack of financial resources, and may be
forced to close down or sell out to the bigger ones in the fore cable future.

Another major problem is the low capacity utilization. The installed capacity of oil
mills is around 36 million tones annually, but capacity utilization is only 40% solvent
extraction plants shows only 33% capacity utilization of vegetable oil refineries 40%
utilization.

The import of refined palm oil was put under OGC (Open general license) in March
1994. Other edible oils were put under OGC in April 1995 when an item is brought
under OGC, it means that the item can be imported without seeking any approval.

Originally there was no discrimination between refined and non-refined edible oil as
far as import duty was concerned. The duty on both was 65% duty was then slashed to
30% for both then to 20% in 1996 and 15 % in the 1999-2000 budgets.

In most parts of the world, import duty on the oil seeds is lower than that on oils. But
in India, it is higher 40%. That is why no import of oil seeds (or) oil-bearing material
has taken place in India. The industry wants the duty to be lowered from the present
40% to 50%.
Edible oil prices in the Indian market have crashed owe to large imports by
multinational trading houses. The edible oil industry is one sector in India that will
see considerable reform in the foreseeable future.

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Major players in refined edible oils in the organizational sector are the ITC Agrotech,
Marico Industries, Ahmed mills, Godrej foods. HLL and NDDB. The market is highly
fragmented among various brands. Sundrop refined Sunflower oil brand with around
13l market share/ ITC Agrotechs other edible oil brands include Real Gold mustard
oil, Crystal refined oil and Sudan unrefined mustard oil. Sweekar sunflower oil
marketed by marica has an 8.2% share and saffola has 7.5% market share other
leading edible oil brands include NDDB’s Dhara rape seed oil. Godrej foods (Godrej
cooklite sunflower) with 11% market share, HLL’s flora with 2.5% market share (6%
in sunflower oil segment) and Postman with around 8% market share.

The vanaspathi HLL’s Dalda is the oldest and largest brand with close to 36% market
share. Its brand extension Dalda manpasand was launched in 1996. In Feb 98, HLL
launched another brand variant dalda feel light. Other major vanaspathi manufacturers
are Wipro, Amrit Vanaspathi, IVP, Madhusudan industries Rasui and Pioneer Agro.

IMPORT OF EDIBLE OILS:

It has not been done away completely, but whenever import is now made is largely a
measure of precaution than out of any composition from 1988-89. The edible oils
import has been drastically cut down/ In 1996-97, import totaled 3 lakh tones valued
at Rs 250 crores during the next 2 years it is expected around the same level. The
present import is significant compared to the napping to 19.45 lakh tones imported
value at Rs 969 crore in 1997-98.

India has signed a memorandum of understanding with Malaysia for an annual import
of two lakh tones of palm oil for two years. Besides the country is to receive 50,000
tones of soya been oil from the U.S. as a gift for meeting social objectives.
Although in the context of exceptionally large oil seeds production during the current
year, there is hardly and need for import, the country may avail the option to import
for building a buffer stock to meet the needs of public distribution system during the
lean period.

19
‘EXPORT

Export of oil mill, oil seed and minor oils and are expected to gather momentum
following the enouncement regarding the full float of rupee on the trade account,
according to the sources in the trade. The present export scenario shows that the trade
is in a beyond mood of achieving a formidable target, with increased export earning in
the current year. This basically enacts from bumper oil seeds output of 215 lakh tones
in the offing. This expectation of a bumper crop, moreover has compelled the union
ministry of commerce to raise the current years export target for the oil seeds from Rs
1250 crore over Rs 1300 crore.

According to the estimates made by the central coordination committee, the exports of
oil mills, oil seeds and minor oils during the current year would be more than 3.3 lakh
tones with a value of Rs 1362 crore as against 30 lakhs tones with the value of Rs
1043 crore achieved during the year 1996-97 the export of oil meals, oil seeds and
minor oil during the period April 1996 to Jan 1998 stood at over 24 lakhs tones valued
at more than Rs 1000 crores.

CUSTOMER SATISFACTION:
Satisfaction is a person’s feeling of pleasure (or) disappointment resulting from
comparing a products perceived performance in relation to his (or) her expectation.
As this definition makes clear satisfaction is a junction of perceived performance and
expectations. If the performance falls short of expectation, the customer is
dissatisfied. If the performance matches the expectations, the customer is satisfied or
delighted.

Many companies are aiming for high satisfaction because customers who are just
satisfied still find it easy to retain.

When a better offer comes along those who are highly satisfied are much less ready to
switch. High satisfaction (or) delight creates an emotional affinity with the brand, not
just a rational preference. The request is high customer loyalty.

20
 COMPANY PROFILE
FOODS FATS & FERTILIZERS LIMITED
Introduction:

Foods, Fats and Fertilizers Ltd, Tadepalligudem are a family owned

Organization. It is well known as “foods, fats”. But the West Godavari farmers call it
is a “Tavudu Factory”. This organization is professionally carrying the business
activity by the Goenka family. It is having branches in Madras, Bombay, Hyderabad,
Kakinada, Calcutta and Baroda.
The registered office of Foods, Fats and Fertilizers:
P.B.NO-15
Tanuku road,
Tadepalligudem-534101
West Godavari district
Andhra Pradesh.
Foods, Fats and Fertilizers Ltd, Tadepalligudem, West Godavari district was
conceived in 1959, born in 1960 and was on its feet by 1962. Today foods, fats and
fertilizers Ltd has matured into a conglomeration of 20 industrial units spread over 40
acres constantly buzzing with activity and providing employment to over 630 persons.

MISSION:
Safety and quality are the wings of our success.

VISION:
To be the number one edible oils and speciality Fats Company in the country
targeting to reach 1000 crores people by 2008.

PHILOSOPHY OF THE COMPANY:

The philosophy of the organization 3F is “serving the society through the

industry”.

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OBJECTIVES OF 3F LTD:

The main objectives of the organization are:

 To serve the society through the success in the oil output.

 The objective towards the organization include –
 Concern
 Commitment
 Integrity
 Quality
Foods, Fats and Fertilizers have completed 40 years of existence where it has seen
lots of ups and downs.
As the company has incorporated its name as Foods, Fats and Fertilizers Ltd,
it has given 3F as the brand name to all the products it produces. The wheel of the
fortune has turned a full circle for Mr. B.K.Goenka, the architect of Foods, Fats and
Fertilizers Ltd. Born and Bred in Burma the Goenka family established and respected
in industry and trade.

They had a flourishing textile business and a large rice mill. The rice bran
from Mr. Goenka’s mill was avidly sought as animal feed and his observant eyes used
to notice thin deposit of oil in the wrapping papers used for sampling could this oil be
extracted? What would be its quality? These questions had to wait because in 1942
the Japanese invaded Burma and Mr. Goenka had to abandon his business and return
to India.

Being an optimist, he transformed the adversity into opportunity by this got

and determination. After brief spell in his native land in Rajastan, his restless
enterprising zeal brought, Mr. Goenka to madras in 1943 where he is with his
brothers, started export of handloom fabrics. In due course he established a large
textile business.

In 1959 Mr. Goenka read in a article by Dr. Raghunath Prasad of central and
visited Burma with him to study the relevant technologies though he found that east
German technology better, he was not fully satisfied and asked his brother Ms G.S.

22
Goenka who was in Japan to study in detail about the Japanese process and another
brother Mr. S.N. Goenka in Europe, to study the process of Hugo of Germany and Dr.
Smith of Belgium mean while he concerned searching for an ideal location to set up
his industry in India. Technology was selected and Tadepalligudem, the rice bowl of
A.P. was finalized as the location for the proposed extraction plant, the first in India to
process rice bran.

This group associates modesty garments and golden needle apparels in

garments and fabrics and Sanyak Udyog in plastic products constantly strengthen
their group activities.

A NEW ERA BEGINS:-

In collaboration with M/S Yoshino seisakusho company Ltd, a renowned
engineering house in Japan we leshered in a unique technology for refining high FFA.
Rice bran oil to induce large production of rice bran oil by providing diversified
outlets and better realization to the solvent extraction plants to achieve the potential
production of 0.6 million toNnes from the present 0.25 million tones and almost
nothing in 1960.

FUNCTIONAL PROFILE:-

PRODUCTION: VARIOUS PLANTS IN FOODS FATS AND FERTILIZERS

LTD:-
Solvent Extraction:- (Lurgi, West Germany)
Installed and commissioned in 1962 with production capacity 2400 tones pa.
This plant process is exclusively for rice bran. Rice bran is tempered and palletized by
the use of hexane, the oil in the bran is extracted. The de oiled bran thus obtained is
packed for export. According to the quality of the oil is extracted is used for edible
and non-edible purposes.

23
Solvent extraction Plant II:- ( desment, Belgium, India)
Installed and commission in 1972 production capacity 36000 tones PA
process. In thus plant is similar to plant-I however this plant is equipped with
preparatory.

Solvent- extraction plant III:-

Installed and commissioned in 1983 production capacity 45,000 tones pa. (
Fabricated and installed by engineering division of foods, fats and fertilizers Ltd).
This plant is also versatile to process various seeds oiled cakes and kernels. It is
designed, fabricated by foods, fats and fertilizers Ltd, engineering division short
coming of the other plant.
Its uniqueness is the incorporation of minimize the Hexane loss and facility for low
temperature extraction.

Refinery:-
Installed and commissioned in 1965 production capacity of 4500 tones p.a.
Our refinery is equipped with both batch and continuous neutralizes. Refining process
consists of benumbing, caustic neutralization, Bleaching and deodorization.
Deodarised oil is passed through polishing filters and sent to packing section.

Solvent extraction plant (iv):-

(Fabricated and installed by oil ex India and their engineering division)
It was installed and commissioned in 1985 with a production capacity of
45000 tons per annum. These four extraction plants provide variability of operation in
oil seeds and oil cakes and at the same time has advantages in marketing. The plants
have facilities to process a wide varieties of oil seeds, oil cakes like rice bran,
soybean, sunflower, ground nut, rape seed, sesame, mangosal, Niger etc.,
Due to non-availability of sufficient bran and export-import policies of Indian
government, forced the company to stop two solvent plants.

Fat Splitting plant:-

Installed and commissioned in 1967 into a production capacity of 4500 tones
pa. Oil consists of fatty acids and glycerin. It can be separated from the oil by high
pressure splitting under high pressure and temperature, reaction taxes place, slitting

24
the oil into crude fatty acid and sweet water which is the dilute from the glycerin is
obtained.

Glycerin plant:-
UNIT NO: 1 installed and commissioned in 1967 with a production capacity
of 300 tons per annum. Sweet water obtains from the fat splitting plant is set to multi
effect vacuum evaporators, where it is evaporated into crude glycerin. The crude
glycerin is further concentrated, deodorized and bleached to yield refined glycerin.

Hydrogenation plant:-
UNIT NO: 1 commissioned in 1979, UNIT NO 2 in 1982 into a production
capacity of 6000 tons per annum. Rice bran oil bounds in unsaturated fatty acids to
render this oil suitable for making good quality soaps it has to be hydrogenated for
increasing its melting point. Hydrogenated plants consists of cell house, compressor
room and hydrogenation auto claves. This oil is hydrogenated under high temperature
and pressure using a catalyst.
To obtain better products for premium soaps this hydrogenated rice bran oil is split
and distilled to give hardened distilled fatty acid.

Physical Refinery:-
Installed in 1986, into production capacity of 9000 tons per annum. This is
fabricated by the engineering division of foods, fats and fertilizers Ltd. The
conventional process of refining consists of specifying the free fatty acid in the oil by
the use of an alga. In physical refining the free fatty acid is directly distilled out under
high vacuum and temperature.

Waste oil recovery plant:-

Installed and commissioned in 1986. In this plant waste oil from present
bleaching earth and spent nickel catalyst is recovered.

25
Vanaspathi Shortening:-
Production of Vanaspathi shortening high quality bakery fats, margarine from
refined oils fractionation. This division produces high quality olives and steering
from various edible fats for use in manufacture of chocolate confectionery and
cosmetics leading manufacturers this yields of activity all over the world are their
consumers.
Turnkey Engineering:-
In collaboration with yashino-seisakush co. Ltd. Japan who has done
pioneering work in developing process and technical know how far refining high fat
rice bran oil. The engineering division has installed and commissioned five plants into
a total project cost of Rs 1.70 millions in south India.
India is the second largest producers of rice and has large potentials for crude rice
bran oil to be processed and turned into a cooking medium to satisfy their
requirements of an immense Indian market.

International Trading:-
Besides the export of the manufactured products, with large ware houses for
dry cargo, bulk storage installation for liquid infrastructures at their command and the
rich international trading experience of over 40 years. They have set up high standards
and achieved substantial growth is international trading of commodities like rice,
industrial fats, maize, tapioca, HPS ground nuts, kernels, oils and chemicals, new
products like natural foods, cob’s, oleoresin and high quality waxes are proposed to
be added to their export baskets.
Through R&D new products and value addition to the existing products is being done
in a continuous basis for enriching the international trading both quality and volume.

ADMINISTRATION AND ORGANIZATIONAL STRUCTURE

Board of Directors:
 Sri B.K.Goenka (Chairman and M.D.)
 G.S.Goenka (whole time Director)
 S.B.Goneka (whole time Director)

26
  Bharat Kumar Goenka (whole time Director)
 O.P.Goneka
 Sita Ram Goenka.
 Sushi Goenka
Organizational structure:
The General Manager is the main administrating and controlling and head of
the 3F ltd. On behalf of the board of directors under him there will be one Deputy
(Finance and Administration) five heads of the Departments representing the 3F ltd.

Man Power Position:-

To continue the day by day operations the company has adopted a systematic
manpower poison.
1) Managerial Staff:
The managerial staff consists of 75 members and they belong to all
departments of the organization.
2) Staff:
Staff consists of 100 members. It includes clerical and non-clerical staff.
3) Technical Staff:
The technical staff consists of 245 members. It includes plant engineers, plant
supervisor, plant operators etc.
4) Bata:
Bata otherwise known as piece rated workers, they are 92 in number.

5) Trainers:
Trainers consist of 98 members. Trainers are those persons who take training
from the organization.
6) Act apprentices:
An act apprentice consists of 20 members. Industrial training colleges send
some students to the organization to pursue trainings in different branches.

27
MARKETING:-
The 3F ltd has a strong marketing network spread in all the country where it is
existed. Various dealers and consignment agents are been appointed every year to
increase the network and have a strong command over the market. The company has
also increased the size of the basket of the products that are offered to the industrial
customers by adding various new products.
FINANCIAL RESULTS:-

Financial performance:

During the years 2002-2003 and 2001-2002, the company was mainly engaged
in trading of imported vegetable oils and achieved a turnover of Rs 279.17 crores as
compared to Rs 327.25 crores previous year.

After that in the year 2003-2004 the turnover is Rs 285.66 crores the
decrement is due to Govt. policies imposed lower customs duty on raw oils. Further
export impressive with resumption of rice and other agri-product exports. The
increase in export performance is due to enhanced manufacturing export from
Rs.7.87 crores to Rs.19.13 crores .

YEAR EXPORTS (Crores)

2016-2015 56.28
2015-2014 61.32
2014-2013 41.65
2013-2012 43.31
AWARDS:-
The company received the “SEA RICE BRAN OIL” award in 2001-2002 from the
solvent, extraction association of India.

PROJECTS:-
2000-2001, a terminal at Gopalpur in orissa was commissioned and started
marketing imported oils in the linter lands of orissa.2001-2002 palm, solvent, refining
and purification of plant.

28
 2002-2003, Balancing of equipment has been by adding a cooling tower to
various plants.2003-2004,Complete Deodourisation plant III has been commissioned
with installed capacity of 18000 TPA in order to improve the productivity.
MANUFACTURE OF QUALITY PRODUCTS:
1. Tandul (Rice Bran Oil)
2. Surabhi (Vanaspathi)
3. Bakers pet (Bakery shortening)
4. FOODS, FATS & FERTILIZERS (Vanaspathi)
5. Mello (Margarine)
6. Mellocreme (Margarine)
7. Biscreme (Aerated Shortening)
8. Palmdelite
9. Goldenspread (Margarine)
10. 3F Sunflower
11. Royal Delight
12. Trim.

Tandul
Premium quality refined Ricebran Oil
Packing: 1 ltr x 10 pouches, 2 ltr can, 5 ltr can, 15 ltr can, 15
kg tin.
Visit website www.heartoil.com

Surabhi
Refined Rice bran Oil
Packing: 15 kg tin

Bakerspet (bakery shortening)

Application: A general purpose frying and cooking medium
used by the baker. Bakerspet also finds its application in the

29
confectionery products.
Packing: 15kg BIB, 15kg tins

3F Vanaspati
Application: A granular all purpose cooking medium.
Packing: 200ml, 500ml 1ltr pouches and 15kg tin

Mello (Margarine)
Application: for voluminous and soft cakes, pastries and plum
cakes.
Packing: 15kg BIB & plastic buckets

Mellocreme (Margarine)
Application: used as filling cream and for cake icings.
Packing:15kg BIB

Biscreme (Aerated Bakery Shortening)

Application: A special product for cookies and the creamy-
centres of biscuits.
Packing: 14kg BIB

30
Palmdelite
Refined Palm Olein.
Packing: 1 ltr x 15 pouches per carton, 15 kg tin.

Goldenspread (Margarine)
Application: a very popular brand for crispy & flaky puffs and
kharis.
Packing: Oil 15kg BIB

3F Sunflower
Packing: 1 ltr pouch x 10, 1 ltr x 20 pouches per carton.

Royaldelite
Premium quality Refined Palm Olein
Packing: 1 Ltr x 15 pouches per carton, 15 kg tin.

Trim
Application: General purpose cooking fat especially for
parathas & biryani.
Packing: 15kg BIB

31
13.

This product is derived from vegetable oils like Palm Fatty Acid Distillate, Rice Bran
Oil, Rice Bran Acid Oil and Crude Palm Stearine. We also manufacture tailor-made
stearic acid to suit customer's specification.

Application:
This product is used in various industrial applications like cosmetics, metallic
stearates, PVC Resin Pipes, Rubber, Metal Polishing, Plastics, Cement Paints, Water
proofing Cements, Tyre Sector etc.

Packing:
In flake form, packed in 50kg HDPE woven bags.

International Trading:-
Besides the export of the manufactured products, with large ware houses for
dry cargo, bulk storage installation for liquid infrastructures at their command and the
rich international trading experience of over 40 years.
They have set up high standards and achieved substantial growth is international
trading of commodities like rice, industrial fats, maize, tapioca, HPS ground nuts,
kernels, oils and chemicals, new products like natural foods, cob’s, oleoresin and high
quality waxes are proposed to be added to their export baskets. Through R&D new
products and value addition to the existing products is being done in a continuous
basis for enriching the international trading both quality and volume.

Organizational structure:

The General Manager is the main administrating and controlling and head of the 3F
ltd. On behalf of the board of directors under him there will be one Deputy (Finance
and Administration) five heads of the Departments representing the 3F ltd.

32
 Organisation chart

Director

G.M G.M Commercial Sales Stores Production Manage ADM

(Finance) (H.R.D) manager manager officers manager r Engg manager

Deputy Personal Commercial Marketing Purchas Manager Maintenance Administration

officer engineer
Manage officer manager e Refineries
r Officer officer

Assistance Welfare Commercial Sales Stores Deputy Mainten Office

manager Manage assistance Represe assistanc Manage ance LASO
r ntative e r engineer IV
boiler

Junior Security Sales Junior Junior Junior Supervi

executive officer assistant stores plant engineer sion &
accountant s officer officer administ
rator

Accountant Time Plant

officer operator

33
Man Power Position:-
To continue the day by day operations the company has adopted a systematic
manpower poison.
1) Managerial Staff:
The managerial staffs consist of 75 members and they belong to all
departments of the organization.
2) Staff:
Staffs consist of 100 members. It includes clerical and non-clerical staff.
3) Technical Staff:
The technical staffs consist of 245 members. It includes plant engineers, plant
supervisor, plant operators etc.
4) Bata:
Bata otherwise known as piece rated workers, they are 92 in number.
5) Trainers:
Trainers consist of 98 members. Trainers are those persons who take training
from the organization.

6) Act apprentices:
An act apprentice consists of 20 members. Industrial training colleges send
some students to the organization to pursue trainings in different branches.
MARKETING:-
The 3F ltd has a strong marketing network spread in all the country where it is
existed. Various dealers and consignment agents are been appointed every year to
increase the network and have a strong command over the market. The company has
also increased the size of the basket of the products that are offered to the industrial
customers by adding various new products.
Capital sources:
 Sales include garments (inclusive of transportation) Rs 171.23 lacs.
 Sales are stated at gross value inclusive of taxes and freight.
 Investment subsidy 20% of fixed capital investment subject to a selling of
Rs2million.

34
  Power subsidy 25% rebate in power bills for a period of 3years subject to a
limit of Rs 5million.
 Capital reserve represents the amount of principle waiver by the bank and
financial institutions.
 Other receipts includes Rs 3.45 lacs being difference of sale value of mould Rs
14 lacs over its purchase value Rs 10.55 lacs made during the year.
 The amount shown in balance sheet, profit loss accounts are not strictly
comparable with previous year due to demerger of the company in the
previous year as the turnover and expenses of resulting company up to 30-09-
2008 are included in the financial statements.

Bankers :
 State bank of India (Chennai)
 State bank of Hyderabad (Chennai)
 Andhra bank (Tadepalligudem)
 Central bank of India (Chennai)
 Industrial development bank of India (Chennai)
 Karur vysya bank ltd (tadepalligudem)
Capital Structure:

The company is a closely held industrial house (with no public investment)

following is the capital structure as 31-3-09.
Particulars Rs crores

Share capital(including reserves) 74.92

Loaned funds(secured loans) 109.34

Unsecured loans 29.93

Deferred tax 1.84

TOTAL 228.03

SWOT Analysis: The swot analysis provides information that is helpful in

matching the firm’s resources and capabilities to the competitive environment in
which it operates. As such, it is instrumental in strategy formulation and selection. A

35
scan of the internal and external environment is an important part of the strategic
planning process environmental factors internal to the form usually can be classified
as strengths(s) and weaknesses (w) and those external to the firm can be classified as
opportunities (o) and threats(t) such as analysis of the strategic environment is
referred to as a swot analysis.
Strengths of 3F:
Strengths are the company’s resources which help to attain the objectives of
the company
 It has efficient management which takes effective decisions.
 Well trained and disciplined work force.
 Plant location which is proximity to labour, raw material, and transportation.
 H.R.policy of the company which is concentrated on enhancing productivity
and result oriented performances.
 It has 3F as a brand name, which is a valuable intangible asset.
 Will positioned in attractive market segments
 It has adopting the latest technology
 Strong financial condition ample financial resources to develop the business.

Weaknesses of 3F:
A weakness is limitation is deficiency in resources skills and capabilities that
seriously in speeds effective performance. Coming to the company side it has no
weaknesses. Particularly but some challenges are there. In front of the company there
are as follow.
 Under utilization of capacity.
 Too much debt.
 High cost structure.
 A weak brand name.
 Lack of quality raw material.

Opportunities of 3F:
The 3F also has key opportunities there are.
 Falling trades barriers in attractive foreign markets.
 Expanding the company’s product line.
 High market share of the company.
 Openings to exploit new technologies.

36
  The 3F has subsidiary companies like
i. Arker international Ltd, Singapore
ii. Eylon speciality fats pvt Ltd, Srilanka
iii. Ghana Ltd, Ghana, west Africa.
 Ability to grow rapidly because of sharply rising buyer demand for the
industries product.

Threats of 3F:
 Increasing intensity of competition among industry competitors may squeeze
profit margin.
 Changes in buyer’s tastes and preferences away from the industry’s product.
 Shortage to supply of raw materials due to natural calamities.

37
 REVIEW OF LITERATURE

A Review of Literature is designed to identify related to set the current research work
within a conceptual and theoretical context. Review of Literature is the important step
in a research work, which has to be done adequately in order to reveal the significance
of the study. In this chapter a detailed review of literature has been done by reviewing
the previous studies relating to the core area of the research. These studies have been
taken from published journals, articles.
Frank M. Bass and W. Wayne Talarzyk (1972) on their study “An Attitude
Model for the Study of Brand Preference” reported that here strongly support the
hypothesis that brand preference is related to attitude measurements based upon
beliefs about and relative importance of product-specific attributes. The attitude
model was shown to result in a greater percentage of correct brand preference
predictions than other models tested. While much work needs to be done before it will
be possible to make strong statements about the implications of this study, attitude
theory does appear to offer considerable potential as a basis for studies of consumer
choice behavior. This research has not dealt with the cause-and-effect relationship
between attitude change and change in preference. Festinger and others have raised
questions concerning the nature and direction of causation in relations between
attitudes and behavior our view is that each probably influences the other. While such
conclusions about directional causality must await studies of the dynamic process, we
do think that these results are sufficiently strong, particularly in comparison with
other reported studies based on socioeconomic and personality variables, to suggest a
basis for a study of dynamics.

Balaji (1985) in his article “A case of fish consumption behavior in Visakhapatnam”

studied fish consumption behavior of 526 consumers in Visakhapatnam. The study
revealed that 77.00 per cent of respondents consumed fish for dinner and 22.00 per
cent for lunch. About 30.00 per cent of the respondents did not consume fish on
festival days, as those days were considered auspicious, while the rest had no
notations and consumed fish, irrespective of festivals.
Shanmugsundaram (1990) in his article “Demographic and psychological factors
that influence the pattern and selection in soft drink and tetra pack drinks – A study in
Vellore” studied that about soft drink preference in Vellore town of North Arcot

38
district in Tamil Nadu. The study revealed that, the most preferred soft drink among
respondents as Gold spot (26.00%), followed by Limca (24.80%). It was found that
the taste was the main factor for preference of particular brand and among the media;
television played a vital role in influencing consumer to go for a particular brand.
Because of convenience in carrying, tetra pack was most preferred one.
Rees (1992), in his study “Factors influencing consumer choice” revealed that food
were flavor, texture, appearance, advertising, a reduction in traditional cooking,
fragmentation of family means and an increase in ‘snacking’, etc. Demographic and
household role changes and the introduction of microwave ovens had produced
changes in eating habits. Vigorous sale of chilled and other prepared foods was
related to the large numbers of working wives and single people, who require value
convenience. Development in retailing with concentration of 80.00 per cent of food
sales in supermarkets was also considered to be important. Consumers were
responding to messages about safety and healthy eating. They were concerned about
the way in which food was produced and want safe, ‘natural’, high quality food at an
appropriate price.
Joshi (1993) in his study conducted that the food purchasing habits and consumer
Awareness among rural and urban housewives indicated that majority of the urban
Respondents purchased the groceries like cereals (52.00%), pulses (64.00%), and oils
(73.00%), spices (72.00%) and sugar (69.00%) on monthly basis. While perishables
like fruits (48.00%), eggs (41.00%) and meat (46.00%) were purchased once in week
and milk (48.00%) was purchased daily. Rural respondents purchased cereals
(70.00%), pulses (71.00%), oils (71.00%), spices (71.00%), sugar (71.00%) and fruits
(73.00%) once in week and milk (78.00%) daily. Regarding place of purchase 83.00
per cent of urban and 99.00 per cent of rural respondents purchased all the groceries
like sugar, rice and wheat from fair price shops. Both rural and urban respondents
purchased groceries (99.00% each), perishables (89.00% and 99.00% respectively)
and ready to use foods (97.00% and 87.00% respectively) and commercially available
foods (96.00% and 6.00% respectively) from retail shops. Price, quality and weight of
the products were the important factors considered by both rural and urban
respondents while purchasing of food items.

Singh (1995) in their article “Factors influencing consumer preferences for type of
Milk supply in Hissar city” examined that the milk quality, convenient, availability,
39
Supply in quantity desired, flavor, color, freshness and mode of payment which
showed higher levels of consumer satisfaction.

Dhillon (1995) in their study “Food purchase habits and consumer awareness of
Rural and urban housewives in Dharwad” stated that the purchase behavior in
Ludhiana, rural and urban respondents ranked nearby market (mean score of 1.47 for
rural and 2.10 for urban) and main market (mean score of 0.88 for rural and 1.38 for
urban) as their first and second preference of order respectively for the purchase of
food items. The prime factor indicated by the rural respondents for buying their food
items was appearance with mean score of 4.01, followed by price, quality and place
of buying to which they ranked second, third and fourth with mean scores of 3.81,
3.45 and 2.96 respectively. But urban respondents visualized these factors little
differently and ranked quality, appearance, place of buying and expiry date as first,
second, third and fourth ranks with mean score of 4.69, 4.01, 3.20 and 3.05
respectively.

Sundar (1997) in his article “Store image of Saravana Bava Super market in
Cuddalore district (A critical study)” revealed that the images of consumers in the
attributes, such as, equality of price, behavior of sales persons, moving space,
location, correctness of weight, packaging of goods, number of sales persons and
convenient shopping hours. At the same time, the image was weak in the attributes,
such as, quality of goods, availability of range of products, variety of goods and
acceptance of returns, credit facility, door delivery and sales promotional measures.

Sayulu and Reddy (1998) in their article “Socio-economic influences of rural

Consumer behavior – An empirical study” concluded that frequency of purchase of
Commodities by rural consumers was highly influenced by the type and nature of the
products. Products like groceries (40.35%) and others which included vegetables,
milk etc. (48.25%) purchased on daily basis and 33.33 per cent and 42.98 per cent of
them purchased these products on weekly basis. Cash purchase was highest in case of
products like groceries (44.74%) followed by credit purchase with 38.60 per cent and
21.06 per cent respectively. Price of the goods was considered to be the most
important factor by more than 88.00 per cent of the respondents followed by easy
availability (66.66%) and neighbors (54.00%).
40
Raj Reddy and Pruthviraju (1999) “Rural consumer behavior for seeds – A
Case study” studied about buying motives of rural consumers about seeds and
different sources of information about brands with regard to seeds. It was found that
factors influencing brand loyalty of farmers were dealer’s suggestions, quality product
and co farmers. The problems faced by farmers were supply of seed or poor quality
seed, higher price, adulteration and irregular supply of seeds.

Kamalaveni and Nirmala (2000) on their study “Consumer behavior in instant

Food products” reported that, there is complete agreement between ranking given by
the housewives and working women regarding the reasons promoting them to buy
Instant Food Products. Age, occupation, education, family size and annual income
had much influence on the per capita expenditure of the Instant Food Products.

Alexander Chernev (2001) in his study “The Impact of Common Features on

Consumer Preferences: A Case of Confirmatory Reasoning” revealed that the impact
of attractive and unattractive common features on consumer preferences. Building on
the existing research on confirmatory information processing and the motivated
reasoning framework, I propose that consumers evaluate common features in a way
that supports their already established preferences. In a series of three studies, I show
that the impact of common features is moderated by their attractiveness and the
strength of individuals’ already established preferences. In the context of a choice
task, only attractive features were found to enhance individuals’ already established
preferences, and this effect was more pronounced for consumers with already
established brand preferences compared to consumers who were indifferent to the
options. The effect of attractive and unattractive features was reversed in the context
of a rejection rather than a selection task. These findings are interpreted in the context
of consumers confirmatory reasoning aimed at reaching a consistent and readily
justifiable decision.
Hugar (2001) on their study “Dynamics of consumer behavior in vegetable marketing
in Dharwad city” pointed out the low income groups purchased lesser quantity (3.25
kg/week) of vegetables as compared to medium (5.40 kg/week) and high income
groups (4.66 kg/week). Majority of low income group preferred to purchase
vegetables from producers because of reasonable price. High and medium income
41
families preferred stall vendors for the purchase of vegetables because of better
quality and correct weightiest.

Gore and Wahid (2002) on their study “A Study of buying behavior for Branded fine
rice” conducted a study on buying behavior for branded fine rice in Chennai and
Coimbatore cities. The study indicated that retailers were ranked as the prime source
of information and the family members as the next important source of information
about the branded fine rice. Rice Mandy formed the major source of purchase for
Chennai (73.00%) and Coimbatore (70.00%) households. Quality and image of the
brand were ranked as first and second factors influencing brand preference in both
Chennai and Coimbatore cities.

Sanjaya (2002) in their article “Study of buying behavior of branded fine

rice”reported that, the decision for purchasing branded fine rice was mostly made by
the wives of the family. The retailers were ranked as the prime sources of information
about branded fine rice. The monthly purchase was the most preferred frequency of
purchase, which might be due to the fact that most of the respondents were of monthly
salaried class and they would have planned their purchase accordingly along with
other provision items. The quality and the image of the brand were ranked as the
major factors for brand preference in the purchase of branded fine rice.

Nandagopal and Chinnaiyan (2003) in their article “Brand preference of soft Drinks
in rural Tamil Nadu” studied that the level of awareness among the Rural Consumers
about the brand of Soft Drinks were high which was indicated by the mode of
purchase of the soft drinks by “Brand Name”. The major source of brand awareness
was word of mouth followed by advertisements, family members, relatives and
friends.

Rajarashmi and Sudarsana (2004) in their study “Buyer behavior of home

appliances with special reference to microwave products in Bangalore city” revealed
that, almost all sample respondents preferred branded products and if their favorite
brand is not available in the retail shop, they will go for another store and purchase
their favorite brand. If it is not available in the market, the respondents were ready to
postpone their purchase decision.
42
Aaron M. Levin (2005) in their study “A Multi-Attribute Analysis of Preferences
for Online and Offline Shopping: Differences across Products, Consumers, and
Shopping Stages” stated that a multi-part survey was administered to assess how
product attribute evaluations drive differences in online/offline shopping preferences
between products, between consumers, and between stages of the shopping
experience. Two groups of participants - a student sample and a sample from a
national survey panel - were asked to rate their likelihood of shopping online or
offline for each of a series of products, both at the search stage and at the purchase
stage. They were then asked to rate the importance of attributes that might have
differential importance for products like clothing and books, and to rate the extent to
which they thought each attribute was delivered better online or offline. For both
samples, differences in importance weights assigned to attributes that favor online
shopping and attribute that favor offline shopping were key predictors of observed
differences in shopping mode preference across products and across consumers.

Adeolu B. Ayanwale (2005) in their study “The Influence of Advertising on

Consumer Brand Preference” mentioned that the proliferation of assorted brands of
food drinks in the country has led to cut-throat competition for increased market share
being witnessed among the operators in the food drink industry. When competition is
keen and the consumers are faced with brand choice in the market, it becomes
imperative for the manufacturers to understand the major factors that can attract the
attention of buyers to his own brand. These then form the basis for marketing panning
and action. This study, which was based on a survey of 315 randomly selected
consumers of food drinks in Lagos, Ibadan and Ile-Ife, cities in Southwestern Nigeria,
examined the role played by advertising in influencing consumers’ preference for
Bournvita, which is one of the leading food drinks in the Food and Beverage industry
in Nigeria. Results revealed that both male and female and different age groups were
equally influenced by advertising in their preference for the brand. 38.73% of the
consumers showed preference for Bournvita out of the various brands of the food
drink studied. The major reasons advanced for the preference are its captivating
advertising (42.62%) and rich quality (40.16%). TV advertising was most preferred
by 71.43% of the respondents of all the media used in advertising Bournvita. The
need for high preference to advertising is therefore highlighted for companies that
43
want to not only retain their market but take positive steps to increase their market
share.

Kubendran and Vanniarajan (2005) in their study “Comparative analysis of Rural

and Urban Consumers on milk consumption” studied that, the change in consumption
pattern was due to changes in food habits. If income and urbanization increase among
consumers, the percentage of income spent on consumption increased. The Urban
Consumers preferred mostly branded products compared to rural consumers. The
most significant factors influencing buying decisions were accessibility, quality,
regular supply, door delivery and the mode of payment.

Ramsey (2005) in their article “Consumer behavior towards Instant Food Products”
reported that the buying behavior is vastly influenced by awareness and attitude
towards the products. Commercial advertisements over television was said to attitude
be the most important source of information, followed by displays in retail outlets.
Consumers do build opinion about a brand on the basis of which various product
features play an important role in decision making process. A large number of
respondents laid emphasis on quality and felt that price is an important factor while
the others attached importance to image of manufacture.

Dr. K. Mallikarjuna Reddy (2005) on her study “Consumers Behavior towards

Two-Wheeler Motor Bikes” stated that the marketing concept is consumer oriented
and the emphasis is more on the consumer rather than on the product. The essence of
modern marketing lies in building of profit along with creating meaningful value
satisfaction for the costumers, whose needs and desires have to be coordinated with
the set of products and production programs. Therefore, marketing success an
enterprise depends as its ability to create a community of satisfied consumers. All the
business activities should be carried out in ways which are directed towards the
satisfaction of the consumer needs.

Banumathy and Hemameena (2006) on their article “Analysis of brand preference

of soft drinks in the global environment” while studying consumer brand preference
with respect to soft drinks, found that after globalization most of the consumers like

44
the international brands such as Pepsi and Coco-cola. Consumers preferred a certain
brand or a particular drink mainly because of its taste and refreshing ability.

Malte Frieze, Michaela Winked and Henning Pilsner (2006) on their study
“Implicit Consumer Preferences and Their Influence on Product Choice” pointed out
that the theories in social psychology assume that people may have two different
attitudes toward an object at the same time one that is explicit and corresponds with
deliberative behavior, and one that is implicit and corresponds with spontaneous
behavior. The presented in this article tested this assumption in the consumer domain
with an experimental approach. Participants whose explicit and implicit preferences
regarding generic food products and well-known food brands were in congruent
were more likely to choose the implicitly preferred brand over the explicitly preferred
one of Choices were made under time pressure. The opposite was the case when they
had ample time to make their choice. On the basis of these results, the discussion
stresses the importance of impulsive behavior and implicit measures for research in
the area of consumer behavior.

Narang (2006) in his study “A study on branded foods” opined that, a buyer does not
stick to one brand in case of food purchasing. They should be able recall different
brand names when they go for purchase. Repetitive advertising can be used to
promote brand recall. The product should be associated with style and trend, so that it
appeals to the youth and the brand name should be developed as a fashion statement.
Promotional schemes such as discounts and free offers with purchase were suggested
to increase rates.

Shyamala Mathan Shankar (2006) on his study “Consumer Perception of Global vs.
Local Brands: The Indian Car Industry” said that consumer perception of global
brands vs. local brands in the Indian car industry. Consumer brand perceptions have
substantial implications in Marketing. The study explores and understands consumer
perceptions of global and local car brands in India by accomplishing the secondary
objectives. The secondary objectives were achieved by highlighting the factors that
affect consumer preference for global brands; by examining the effects of country of
45
origin on consumer perceptions of global brands and local brands; and by studying the
effects of consumer ethnocentrism towards global brands. For creating a deep
understanding of consumers’ insights of global car brands against local car brands,
qualitative approach was adopted with an in-depth and semi-structured interview
process. Interviews as a qualitative tool helped the researcher to uncover individual’s
covert feelings and emotions towards perception of global brands vs. local brands.
The findings of the study advised that the consumers who possessed global car
brands, preferred their car brands due to factors such as global presence, worldwide
reputation, and quality of being a foreign make. Prestige or status had a very little or
no influence in their preference for global car brands. Consumers made favorable
perceptions of the country, wherein they tend to associate factors such as superior
quality, technical advancements, modernization, etc…to the country from which the
brand had taken its origin. Consumers who owned a local car brand evaluated the
local brand in a favorable manner, wherein they tend to associate the brand to India’s
strong automobile sector that makes quality and technically efficient cars. The study
found to have both non-ethnocentric consumers and consumers who were low on
CET. Most of the respondents perceive local brands to be good in India, but not as
good as the global ones in quality, technical expertise and designs of the cars.

Vincent (2006) in his article “A study on brand consciousness among children and its
effect on family buying behavior in Bangalore city”. elicited important factor that
draws consumer towards branded products. Branded products that quality was an
were accepted as good quality products. People do not mind paying extra for branded
products, as they get value for money. Media is a key constituent in promoting and
influencing brand. A child’s insistence affects family’s buying behavior. Children are
highly aware and conscious of branded items. Although unbranded products
sometimes give same satisfaction as branded products, customers would still prefer to
purchase a branded product.

Mr. K. Sivakumar (2007) on his article “Consumers Attitude towards the Products
of Indian and Multi National Companies - A Comparative Study with Reference to
Electrical and Electronic Products” stated that the entry of MNCs in India leads to exit
of certain Indian companies of various industries. However Indian people
compromise to purchase Indian products, if they had quality and special features in
46
those products also. People are interested to buy the MNCs products not only for
quality or for product features but also for cost, brand image, service, social status and
host number of other factors. The growth of MNCs product in 2007 has crossed the
$33 billion mark. The impact of MNCs product in Indian industries should play a
positive role by framing same rules and regulations as framed for domestic countries.
The study attempts to research about the consumer attitude towards Indian and MNCs
products for electrical and electronic products in Chennai city and develops various
aspects about the use of Indian and MNCs products for various reasons.

Smriti Bajaj (2007) in his study “Consumer Perceptions of Global and Local Brands
in the Indian Retail Industry” pointed out that the purpose of this dissertation is to
investigate, in an emerging market, consumer attitudes towards local and foreign
brand purchases against a background of factors like Culture, Country of Origin,
Product quality and services. A comprehensive model broadens knowledge on
consumer behavior by incorporating the above mentioned factors. India is the
emerging market studied. A total of 18 respondents were interviewed face-to-face
using a semi structured questionnaire in the city of Mumbai and Indian students
studying in the United Kingdom. It was found that the quality of global brands was
perceived to be generally higher and superior to local brands. Most consumers also
associated greater accessibility of foreign brands in the Indian market with better
quality at lower prices. Indian consumers were not prejudiced against foreign brand
names. In fact, they evaluated them higher on technology, quality, status and esteem
than Indian brands and attributed higher credibility to those countries of origin. This
study adds to the body of knowledge about consumer behavior and their perceptions
of global vs. local brands, in a massive and fast developing market. As companies
become global, managers must possess a thorough understanding of the attitudinal
and behavioral characteristics of emerging consumer markets, because what is known
about consumers in one part of the world is not applicable to consumers in other parts.

Usha.V (2007) in her study “A Study on Buying Behavior of Consumers towards

Instant Food Products in Kolar District” stated that In India, majority of food
consumption is still at home. Nevertheless, out-of-home food consumption is
increasing due to increase in urbanization, breaking up of the traditional joint family
system, desire for quality, time which translates into an increased need for
47
convenience, increasing number of working women, rise in per capita income,
changing lifestyles and increasing level of affluence in the middle income group had
brought about changes in food habits. Hence, Instant Food Products came into light,
which originated in Japan with Instant noodles and had its beginning in India in 80’s,
are found today in the kitchen shelves of every Indian household. The advancement of
science and technology offered the people new foods processing vessels, equipment
and tools but still people were in search of new techniques to speed up the cooking
process in order to cope up with mechanical life, as they do not have sufficient time to
cook food in the conventional methods. Capitalizing this situation, business houses
ranging from small time manufactures to multinational corporations have started
innovating and commercializing “easy to cook food items” like noodles, vermicelli,
gulab jamun, instant idly, vada, dosa mix etc. that are otherwise called instant. The
instant food products are not only easy to cook but also have a significant role and
place in the celebration of the family functions and religious functions of the people.

Varun T.C. (2008) in his study “Consumption Behavior of Coffee and Tea in
Karnataka” mentioned Coffee and tea are drunk in most countries, but typically one
predominates. Coffee is the preferred drink in Europe and America, and tea
elsewhere. Until the early eighteenth century, coffee production and consumption was
confined to the Islamic World and tea production to East Asia. European traders
altered this pattern dramatically. The present pattern of coffee consumption is
influenced by income per capita and that of tea is not. Religious influence played
some part in the early development of both tea and coffee but have little relevance at
the present. In the past, coffee was regarded as an "old fashioned" beverage for older
people, with just two flavors regular and decaf. Coffee, of late has become relevant
and contemporary. Coffee houses or bars have sprung up across the country, making
coffee an important part of social gathering places. In many communities, coffee bars
have become innovative: some provide personal computers so that customers can surf
the Net, while others provide match-making services. There is a wide variety of
coffee offerings, from size, flavor, preparation and toppings and plenty of gourmet
and specialty shops to provide them. For the last few years, new product trends have
been driven specifically by consumer demand for more complex, upscale coffee, both
in and outside of their homes. The increased sophistication of the coffee drinker’s
palate means that coffee as a whole is moving away from the “Cuppa - Joe” image
48
and towards a richer, more complex drinking experience. So, as the trend towards
single cup preparation at home is building more and more momentum, packaging
innovators are looking at how-to best present pods to these consumers on retail
shelves.

Wong Foong Yee AND Yahyah Sidek (2008) on their study “Influence of Brand
Loyalty on Consumer Sportswear” investigated that how the respondents are
influenced by factors of brand loyalty towards sportswear brands. Previous research
adopted seven factors to test in the Malaysian environment. The seven factors of
brand loyalty are brand name, product quality, price, style, promotion, service quality
and store environment. Brand name has shown strong correlation with brand loyalty.
In order to increase customer satisfaction and drive them to be brand loyalists,
marketers are encouraged to develop aggressive marketing programs.
Questionnaires were distributed and self administered to 100 respondents.
Descriptive analysis, one-way ANOVA and Pearson Correlation were used in this
study. The research results showed that there is positive and significant relationship
between factors of brand loyalty (brand name, product quality, price, style, promotion,
and service quality and store environment) with sportswear brand loyalty. Study of
more focused factors that are appropriate to the Malaysian environment is
recommended in order to obtain accurate information.

Prof. Praneti Shah Mehta Priyam and Umesh Lukhi (2009) in their study
“Purchase Pattern of consumers for Consumer Durables along with Preference
towards Organized & Unorganized Retail Formats” stated that the consumer durables
market is expected to grow at 10-15% in 2007-2008. It is growing very fast because
of rise in living standards, easy access to consumer finance, and wide range of choice,
as many foreign players were entering in the market with the increase in income
levels, easy availability of finance, increase in consumer awareness, and introduction
of new models, the demand for consumer durables has increased significantly.
Products like washing machines, air conditioners, microwave ovens, color televisions
(C-TV) were no longer considered luxury items. However, there were still very few
players in categories like vacuum cleaners, and dishwashers Consumer durables
sector is characterized by the emergence of MNCs, exchange offers, discounts, and
intense competition. The market share of MNCs in consumer durables sector is 65%.
49
MNC's major target is the growing middle class of India. MNCs offer superior
technology to the consumers whereas the Indian companies compete on the basis of
firm grasp of the local market, their well acknowledged brands, and hold over wide
distribution network. However, the penetration Level of the consumer durables is still
low in India. Indian Consumer durables market used to be dominated by few domestic
players like Godrej, Voltas and Kelvinator. But post liberalization many foreign
companies have entered into Indian market dethroning the Indian players and
dominating Indian market the major categories being CTV, Refrigerator, Microwave
Oven and Washing Machines. India being the second largest growing economy with
huge consumer class has resulted in consumer durables as the fastest growing
industries in India. LG, Samsung the two Korean companies have been maintaining
the lead in the market with LG being leader in almost all the categories. The rural
market is growing faster than the urban market, although the penetration level is much
lower .The CTV segment is expected to the largest contributing segment to the overall
growth of the industry. The rising income levels double-income families and
consumer awareness were the main growth drivers of the industries.

G. Vani, M. Ganesh Babu and N. Panchanatham (2010) in his article “Toothpaste

Brands –A Study of Consumer Behavior in Bangalore City” focused that the external
factors like demographic, social, cultural, price, quality, products and attributes etc for
buying toothpaste. The market share of any product is highly determined by the
purchasing behavior of the consumers. Following study is conducted by the researcher
to find out the behavior of the consumers, to analyze the preference of consumers, &
consumer awareness. Descriptive research design was adopted and the data is
collected through primary and secondary sources. The method adopted for conducting
survey is questionnaire; Simple random sampling technique was adopted for selecting
the consumers.

Prof. Lakshmi Nair(2011) in her study “Private Labels Brands in Food & Grocery:
The Changing perceptions of Consumers & Retailers in India- A Study in the Pune
Region” viewed that the private labels or store brands are on escalating journey for
growth in last few years in Indian market. The growth of private label brands (PLBs)
is quite impressive in food and grocery segment, in spite of presence of leading
national manufacturers brands in most of the categories. Though, initially PLBs were
50
considered as cheap alternatives and therefore visible in copycat and generic
categories, today they are a part of well defined retail mix strategy, are developed in
value innovators and premium categories for profit maximization and customer
loyalty. This paper examines the growth of these PLBs internationally and among
Indian retailer, mainly in food and grocery segment. It investigates the perceptions of
consumers for PLBs and their involvement in purchasing of such PLBs in the retail
segment. The purpose is to analyze unique PLB associations in the minds of
consumers so as to gauge the customer loyalty, consumer preferences and shopping
behavior, and thereby add to retail brand equity.

Dr. Ramesh Sardar (2012) on his article “Brand Preference of Passenger Cars in
Aurangabad District” detailed that the analysis of marketing, a consumer behavior and
brand preference of passenger car is carried out in Aurangabad district of Maharashtra
state. As a result, focusing on an industry where brands, marketing knowledge and
distribution networks have been important determinants in the growth and survival of
firms. It reaches distinct conclusions. The article illustrates the analysis and
interpretation of data. Finally it concludes with findings and recommendations of the
study which may be useful for general public as even the manufacturers and dealers
can understand the dimensions reflecting brand preference of passenger cars and
impact of all these factors on customer satisfaction.

Dr. Shendge (2012) on his study “A Comparative Study of Consumer Preference

towards Cadbury and Nestle Chocolates with Special Reference to Navi Peth Area in
Sholapur City” viewed that Chocolate is liked and eaten by all age group of people.

51
 DATA ANALYSIS & INTERPRETATION

1. Which brand of oil you are using presently?

TABLE-4.1

OPINION NO OF RESPONDENTS PERCENTAGE

Ruchi Gold 30 30
3F Oil 20 20
Gemini 12 12
Raag 16 16
Lion brand 12 12
Sunflower 10 10
TOTAL 100 100

CHART-4.1

PERCENTAGE

10
12 30 Ruchi Gold
3F Oil

16 Gemini
Raag
20
12 Lion brand
Sunflower

INTERPRETATION:
From the table & graph it is identified that out 30% of respondents using
Ruchi Gold, 20% of respondents using KOF oil, 12% of respondents using Gemini,
16% of respondents using Raag, 12% of respondents using lion brand 10% of
respondents are using Sunflower.

52
 2. What are the factors have influenced you to use the 3F Oil?

TABLE-4.2

OPINION NO OF RESPONDENTS PERCENTAGE

Fat Content 8 8
Fragrance 26 26
Packaging 6 6
Advertisement 28 28
Brand Name 6 6
Affordable Price 26 26
TOTAL 100 100

CHART-4.2

PERCENTAGE

8
26 Fat Content
26 Fragrance
6 Packaging

6 Advertisement
28 Brand Name
Affordable Price

INTERPRETATION:
From the table & graph it is observed that 8% of people said that fat content is
influencing factors, 26% of people influencing fragrance, 6% of people influencing
packaging, 28% of people influencing advertising, 6% of people influencing brand
name and 26% of people influencing affordable price.

53
 3. Are you using 3F oil?

TABLE-4.3

OPINION NO OF RESPONDENTS PERCENTAGE

Yes 40 40

No 60 60

TOTAL 100 100

CHART-4.3

PERCENTAGE

40

Yes
60
No

INTERPRETATION:
From the table & graph it is observed that 40 respondents are using 3F oil and
60 respondents are not using 3F oil.

54
 4. How do you know about 3F Oil?
TABLE-4.4

OPINION NO OF RESPONDENTS PERCENTAGE

Relative 24 24
Newspaper & Magazine 30 30
Advertisement 26 26
Friends 20 20
TOTAL 100 100

CHART-4.4

PERCENTAGE

20 24
Relative
Newspaper & Magazine
26
30 Advertisement
Friends

INTERPRETATION:
From the table & graph it is identified that 24 % of respondents are came to now
from relative,30% of respondents are come to know from News paper and
magazine,26% of respondents are came to know from advertisement &20 % of
respondents are come to know from friends.

55
 5. How many times do you buy oil in a month?

TABLE-4.5

OPINION NO OF RESPONDENTS PERCENTAGE

Once a month 20 20
Twice a month 60 60
Thrice a month 10 10
Weekly 10 10
TOTAL 100 100

CHART-4.5

PERCENTAGE

10 20
10
Once a month
Twice a month
Thrice a month
60 Weekly

INTERPRETATION:
From the table & graph it is observed that 20% of respondents are
buying once a month,60% of respondents are buying twice a month,10% of
respondents are buying thrice a month & 10% of respondents are buying per weekly.

56
 6. What is the size oil you normally use?

TABLE-4.6

OPINION NO OF RESPONDENTS PERCENTAGE

1 Liter 44 44
5 Liter 30 30
10 Liter 26 26
TOTAL 100 100

CHART-4.6

PERCENTAGE

26
44
1 Liter
5 Liter
10 Liter
30

INTERPRETATION:
From the table & graph it is observed that 44% of respondents are
normally using 1 liter, 30% of respondents are using 5 liters & 26% of respondents
are using 10 liters.

57
 7. Where do you purchase 3F Oil?

TABLE-4.7

OPINION NO OF RESPONDENTS PERCENTAGE

Whole sellers 54 54
Retailers 30 30
Super Market 10 10
Consumer Stores 6 6
TOTAL 100 100

CHART-4.7

PERCENTAGE

6
10
Whole sellers
54 Retailers
30
Super Market
Consumer Stores

INTERPRETATION:
From the table & graph it is observed that 54% of respondents are buying from
whole sellers, 30% of respondents from retailer’s shop.10% of respondents are buying
from supermarket, & 6% of respondents are buying consumer stores.

58
 8. Which of the following promotional tools are you more motivated to pursue
3F Oil Products?

TABLE-4.8

OPINION NO OF RESPONDENTS PERCENTAGE

Discount 48 48
Gift 32 32
Extra 20 20
TOTAL 100 100

CHART-4.8

PERCENTAGE

20

48
Discount
Gift
32 Extra

INTERPRETATION:
From the table &graph it is observed that 48% of respondents said that
discount is the motivational factors to pursue 3F oil products, 32% of respondent’s
opined that gift & 20% of respondents said that extra is the motivational factors to
pursue 3F oil products.

59
 9. What is the level of satisfaction with regard to fragrance of 3F Oil products?

TABLE-4.9

OPINION NO OF RESPONDENTS PERCENTAGE

Excellent 37 37
Good 32 32
Average 26 26
Poor 5 5
TOTAL 100 100

CHART-4.9

PERCENTAGE

5
26 37
Excellent
Good
Average

32 Poor

INTERPRETATION:
From the table &graph it is observed that 37% of respondents said that
fragrance of 3F Oil is excellent, 32% of the respondents opined that good, 26% of the
respondents opined average & 5% of the respondents opined poor.

60
 10. Are you satisfied with the price for the brand that you prefer?
TABLE-4.10

OPINION RESPONDENTS PERCENTAGE

Yes 90 90
10
No 10
100
TOTAL 100

CHART-4.10

10

Yes
No
90

INTERPRETATION:
From the above table and graph 90 % respondents satisfied with the price of the
oil prefer by them and 10 % respondents doesn’t satisfied with the price for the brand
pickle prefer by them.

61
 11. Why you prefer the oil of that brand only?

TABLE-4.11

OPINION RESPONDENTS PERCENTAGE

Packaging 12 12
Quality 76 76
Price 06 06
Other factor 06 06

TOTAL 100 100

CHART-4.11

6 6
12

Packaging
Quality

76 Price
Other factor

INTERPRETATION:
From the above table and graph 76 % respondents opined that prefer the
oil brand only for quality, 12 % respondents says that prefer the oil brand only for
packaging, 6 % respondents express that prefer the oil brand only for price and 6 %
respondents express that prefer the oil brand for other factors.

62
 12. Why you are not using 3F Oil products?

TABLE-4.12

OPINION NO OF RESPONDENTS PERCENTAGE

Brand name 18 18
Low fragrance 10 10
Non awareness 10 10
High Price 36 36
Non feeling freshness 26 26

TOTAL 100 100

CHART-4.12

PERCENTAGE

26 18
Brand name
10 Low fragrance

10 Non awareness
36 High Price
Non feeling freshness

INTERPRETATION:
From the table &graph it is observed that 37% of respondents said that
fragrance of 3F Oil is excellent, 32% of the respondents opined that good, 26% of the
respondents opined average & 5% of the respondents opined poor.

63
 13. Do you check various quality checks (like pfa, iso, isi, agmark etc...,) before
buying oil from the market?
TABLE--4.13

OPINION RESPONDENTS PERCENTAGE

Always 80 80
Sometimes 10 10
Never 10 10
TOTAL 100 100

CHART-4.13

10
10

Always
Sometimes
80
Never

INTERPRETATION:
From the above table and graph 80 % respondents express that checks
the various quality before buying oil in the market always, 10 % respondents opined
that sometimes only checks the quality, 10 % respondents says that never checks
before buying oil in the market.

64
14. Do you look for manufacturing and expiry date before buying the product?
TABLE--4.14

OPINION RESPONDENTS PERCENTAGE

Always 67 67
Sometimes 20 20
Never 13 13
TOTAL 100 100

CHART-4.14

13

20
Always
67 Sometimes
Never

INTERPRETATION:

From the above table and graph 67 % respondents express that look for
manufacturing and expiry date before purchasing the oil always, 20 % respondents
says that look for manufacturing and expiry date before purchasing the oil sometimes,
13 % respondents opined that never look for manufacturing and expiry date before
purchasing the oil.’

65
15. Based on its present features and attributes, would you recommend 3F Oil
Products to others?
TABLE--4.15

OPINION NO. OF RESPONDENTS PERCENTAGE

Yes 83% 83%

No 17% 17%

TOTAL 100 100%

CHART-4.15

PERCENTAGE

17

Yes
No
83

INTERPRETATION:

It is identified that 83% of consumers say yes recommend of 3F Oil Products to

others and 17 % of consumers say no.

66
 RESULTS & DISCUSSIONS

 It is observed that majority of the customers are very sensitive with quality
and are influenced by fragrance as their first preference.
 It is identified that majority of the customers are observing the price factor
while purchasing the oils.
 It is noticed that the customers are fully satisfied with the quality and quantity
of the oil.
 It is identified that the customers are focusing on quality while purchasing the
oil.
 It is observed that majority of the customers are influenced by advertisement.
However, the customer retention an advertisement is essential.
 It is identified that majority of the customers buying in retailers shop because
of it may be convenient to the consumers.

67
 SUGGESTIONS

 It is suggested to the company to look over the new promotion strategies

which in turn s increase the sales.
 It is recommended to the company management has to make the product
available in more location and to consistently maintain the quality of product.
 It is suggested to the company to reduce the investment in advertisements
because the quality of the advertisement does not change the perception about
the product.
 It is suggested to the company to give more and a more sales promotions to
the consumers, the sales promotions like samples, price off, gift, etc because
the consumers are price sensitive.
 It is recommended to the company to maintain various quality standards.
 It is suggested to the company to concentrate on delivery schedules.
 It is recommended to the company to look over the dealers.
 It is advised to the company to conduct more and more consumer meeting,
door-to- door survey.

68
 CONCLUSION

The study was started so as to know whether the customers are preferred with
products of the company. The project has been done on the customer preference
towards the products. The analysis was done based on the information collected in the
form of questionnaire from the customers of the company. This has been done in 3F
Industries Limited, Tadepalligudem. The major part of the analysis is based upon the
percentage analysis. After a brief analysis, few findings were derived. Based on
findings, Suggestions and Conclusion were made. Thus, the report says that the
products by the company were very useful for middle class housewives are the major
consumers of the 3F Industries from a long time. However, the data shows the
consumers buy the 3F Oil for its quality, taste and brand image over than the price.
Moreover, many people are interested to taking the products with the company in the
future.

69
 BIBLIOGRAPHY

TEXT BOOKS:
 Philip Kotler: Marketing Management; Pearson Publisher, New Delhi.
 Kazmi: Consumer Behaviour; Excel Publisher.
 H. Peer Mohammed: Customer Relationship Management; Vikas Publisher,
New Delhi.
 C.R. Kothari: Research Methodology; New Age International Publisher, New
Delhi.

WEBSITES:

www.fff.co.in

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