New Project

A study on the effects of brand associations of AVT Tea among homemakers
1. INTRODUCTION
The research is conducted on the topic “A STUDY ON THE EFFECTS OF

BRAND ASSOCIATIONS OF AVT TEA AMONG HOMEMAKERS” at AVT
NATURAL PRODUCTS LTD, South Vazhakulam. This study is aimed to find out
the effects of the brand associations of AVT Tea which result the brand preference
among homemakers. The study helps to find out the influence of AVT brand
associations and how much the consumers are satisfied with their brand preference of
AVT Tea. The researcher intends to find out how effective is the brand associations
and how it play an important role in increasing the brand preference of AVT Tea
among its customers. The research is done among the consumers of AVT Tea to
know the effectiveness of brand associations and to find out whether steps should be
taken to increase the brand preference.
AVT Natural Products, ranks today as the market leader in India's black tea
industry. The Company commenced its operations in 1972 and within a short span of
time, developed into a global player with over 500 products covering spice oleoresins,
Decaffeinated Tea, instant tea, green tea, essential oils, natural food colours, micro
encapsulated products, sprays dried botanical extracts, health and functional food
ingredients, floral concretes/absolutes and resinoids.
This project was conducted in the company to study the effects of brand
associations of AVT Tea and to assess the satisfaction level of the customers. The
project targets the homemakers as the major users of the AVT Tea products. The
linkages between the brand name, its attributes, and other brands in the marketplace
mean that associated attributes can be unique to the consumer, unique to the brand, or
shared with other brands. Consumers purchase decisions for AVT Tea powders are
always influenced by a number of factors, which lead them to select a particular brand
in preference to others. In this study some attributes are considered as important cues,
which lead consumer to select a particular brand of Tea. This study examines
satisfaction level of the customers in a given population sample. The study on the
effects of brand associations of AVT Tea among customers was studied by way of
market research conducted among the customers.
Jai Bharath school of management studies

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1.1 STATEMENT OF THE PROBLEM
World requirement for hygienic and consistent quality of branded Tea has become
a necessity. Brand associations are not “reasons-to-buy” but provide acquaintance and
differentiation that is not replicable. Purchasing decisions are the behavioural outcome
that precedes differentiation between several alternatives is the purchasing decision; a
subsequent outcome of consumer preferences. Preferences facilitate consumers‟ choice
by enhancing their intentions towards the favoured brand.
Here, homemakers are the prospective customers of AVT tea. The responses from
the non-users of the products were quite favorable showing positive demand for the
products in the future.
Thus to meet these requirements, AVT Natural Products has consciously put
forward a strategy to build the brand associations. In order to survive a company needs
to view its brand associations in the same way as views its end users. It is essential to
find out the effectiveness of brand associations, which have a direct impact on the
brand preference of an organization.
 PROBLEM FORMULATION:
The purpose of the research reported here was to test empirically a

conceptualization of brand associations that consists of three dimensions: brand image,
brand attitude and perceived quality. A better understanding of brand associations is
needed to facilitate further theoretical development and practical measurement of the
construct. Homemakers are considered to be the potential customers and they expressed
their satisfaction towards using the products. Hence the study focuses on the responses
of homemakers as targeted consumers of branded AVT Tea products.
Findings confirm the efficiency of the brand image protocol and indicate that brand
associations differ across brands and product categories. The latter finding supports the
conclusion that brand associations for different products should be measured using
different items. As predicted, dimensionality of brand associations was found to be
influenced by brand familiarity.

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Framework of the study
VARIABLES: A variable is a measurable characteristic that varies. It may

change from group to group, person to person, or even within one person over time.
Statements about association are usually stated in terms of a relationship between an
independent and a dependent variable. The idea is that one variable is the effect of
another variable or, to say it another way, that one variable precedes and/or causes
another.
The dependent variable is the variable to be explained (the „effect”). For

example, if the independent variable is the brand associations of AVT Tea, then the
dependent variable might be brand preference among consumers. In other words, the
variation in the dependent variable depends on the variation in the independent
variable.
Fig 1.1: Framework of the study
Intervening variable
 Taste and preferences of the home

makers
 Change in Prices of rival products
 Income of the customers
Brand Brand
associations Preference
(Cause variable) (Effect variable)

Moderating variables
 Perceived quality
 Brand image
 Brand attitude
(Source: primary data)

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The independent variable is the variable expected to account for (the “cause”
of) the dependent variable. Because of the limitations in inferring cause-and-effect
relationships in the social sciences, be cautious about using the terms cause and
effect when examining relationships between variables. However, using the terms
independent and dependent variables is still appropriate even when this relationship
is not articulated in terms of direct cause and effect. Here are a few guidelines that
may help to identify the independent and dependent variables:
(1) The dependent variable is always the property which is trying to explain; it
is always the object of the research.
(2) The independent variable usually occurs earlier in time than the dependent
variable.
(3) The independent variable is often seen influencing, directly or indirectly, the
dependent variable.
Intervening variables: refer to abstract processes that are not directly observable
but that link the independent and dependent variables. The following are Mediating
variables: Taste and preferences of the home makers, Change in Prices of rival
products, Income of the customers etc.
Moderator variables: affect the relationship between the independent and

dependent variables by modifying the effect of the intervening variable(s). In this
framework the moderating variables are Perceived quality, Brand image, Brand
attitude
 PROBLEM IDENTIFICATION:
The current dynamic and complex business environment makes it difficult for the
managers to obtain the necessary information by themselves, without the help of
researchers. It was important from the company‟s point of view to understand the
acceptance of the product in the market and their feedback on the product which was
found out from the market research. Also the study was initiated to spread awareness
among those who were unaware this particular product range of the company. Thus the
study had an impact on the company‟s understanding about its premium range of
products.

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1.2 OBJECTIVES OF THE STUDY
Primary objective: To study the relationship between the influence of brand

associations of AVT Tea and brand preference among homemakers.
Secondary Objectives
 To find out the relationship between perceived quality of AVT Tea and quantity of
purchase among homemakers.
 To understand the association between overall excellence of AVT Tea products and
its brand loyalty among homemakers.
1.3 SIGNIFICANCE OF THE STUDY
AVT Natural Products has an inevitable part of business & management

strategies. The Project study is very important for knowing the following.
 To study the effects of brand associations of AVT Tea.

 To familiarize with the brand associations of AVT Tea.
 To understand the brand preference of the company products among customers.
1.4 TESTING OF HYPOTHESIS:

Chi-square test and correlation test have been employed to find out the
hypothesis of the study. The hypotheses are given below.
1) Ho: There is no relationship between brand associations and brand preference

among homemakers
Ha: There is a relationship between brand associations and brand preference among
homemakers
2) Ho: There is no relationship between perceived quality of AVT Tea products and
quantity of purchase among homemakers.
Ha: There is a relationship between perceived quality of AVT Tea products and
3) Ho: There is no relationship between overall excellence of AVT Tea products and
brand loyalty of AVT Tea among home makers.
Ha: There is a relationship between overall excellence of AVT Tea products and

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1.5 RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may

be understood as a science of studying how research is done scientifically. The
researcher studies the various steps that are generally adopted by a researcher in
studying his research problem along with the logic behind them. It is necessary for the
researcher to know not only the research methods/techniques but also the methodology.
Researchers also need to understand the assumptions underlying various techniques and
they need to know the criteria by which they can decide that certain techniques and
procedures will be applicable to certain problems and others will not. All this means
that it is necessary for the researcher to design his methodology for his problem as the
same may differ from problem to problem. Research methodology includes various
research methods such as type of research, source of data collection, sampling frame,
population etc.
1.5.1 Data Collection

Data Collection Method:
Questionnaires were sent to the selected customers of the AVT tea products. The
requisite data for the study were collected through structured questionnaire and Personal
interview
. Primary Data:
Primary data are collected through direct interview, questionnaire, interaction and
observation. The primary data is collected from the customers of the company.
Respondents include both the current and prospective customers of AVT products.
Secondary Data:
The secondary data are those which have already been collected by someone
and which have already been passed through some statistical process. Secondary data
are collected from
 company records
 magazines
 journals
 Internet.

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1.5.2 RESEARCH DESIGN
The research design used for this study is descriptive in nature. Descriptive research
studies are those studies concerned with describing the characteristics of a particular
individual or a group to prove the outcome. Chi-square test and correlation test have been
employed to find out the hypothesis of the study. It is conducted among the customers of
AVT Natural Products who are the current and prospective customers of the AVT Tea.
The study was based on responses given by the customers of AVT Natural Products.
1.5.3 SAMPLING DESIGN

i. Population:
All the items under consideration in any field of inquiry constitute a Universe or
Population. The group of individuals under study is known as population or universe.
Therefore, the universe is the aggregate of all the units to be studied to any field of
inquiry. In this study the population of the homemakers of Ernakulum district is taken.
ii. Sample:
Sample size refers to the number of items to be selected from the universe to a
sample. Here the sample size taken for the study is 100.
iii. Sample unit:
Every single customer that comes under the list of 100 customers allotted by the
company comes under this list.
1.5.4 Tool for Analysis

A structured questionnaire was set with 22 questions asking the respondents to think
of the brand associations of the AVT Tea products and their brand preference on the
products. After collection of data from the workers each question were classified
and tabulated in the following statistical tabulation methods.
 Simple Percentage Analysis

 Chi-Square Test
 Correlation test
1.5.5 Period Of Study

The study was carried out for a period from May 2nd 2015 to 2nd July 2015.

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1.6 LIMITATION OF THE STUDY
 Cannot ensure the accuracy and reliability of data.

 The quality of the information highly dependent on the knowledge of the
respondents.
 The customers of AVT products are limited to potential customers as home
makers
 There may be bias in answering certain questions by the respondents.
1.7 SCOPE FOR FUTURE STUDY

The study help to analyze the preference level of AVT Tea products as well as the
reach of the product attributes among potential customers. Thus the study would be
incidental in bringing out necessary modifications for further brand associations into
the brand preference.
 As the AVT Tea of products have the advantage of „backward integration‟ for
quality tea products, this will have a major importance in the coming years due
to the fact that customers are becoming more health conscious and the
authorities of every country have make it a point of their responsibility to sell
off only quality tea products that would cater to requirements.
 The market competition of AVT tea products is very high. Therefore it is
important for the company to have a clear cut idea of this because it has a major
opportunity around the globe.
 Though the opportunity is very huge, the scope of the study had to be limited
taking just a few of the customers who are representative of the company.
The study intended to attain a firsthand experience of the overall running of an

organization. It helps to understand the working conditions of the organization; it‟s
financial and market position. A detailed analysis of each of the activities performed by
the departments is beyond the scope of the study. It provides a chance to see practical
constraints faced by the managers while putting theory in to practice. This research also
helps to identify the scope of brand associations which have influence on the brand
preference of customers

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1.8 CHAPTER SCHEME
Chapter 1: Introduction
This chapter gives a clear picture about the research. It includes the introduction of
the study, statement of problem, objectives of the study, scope of the study, limitation
of the study.
Chapter 2: Theoretical background and Literature Review
In this chapter the researcher describes the theoretical and literature review of the
study.
Chapter 3: Industry Profile
This chapter gives a clear picture about the industry, its world, Indian scenario. It
also includes the company profile.
Chapter 4: Data Analysis and Interpretation
This chapter deals with the analysis and interpretation of the data collected. The
analysis and interpretation are presented using tables and graphs.
It contains research methodology which includes research design, data collection,

sampling and statistical design
Chapter 5: Findings, Suggestions and Conclusion
It includes the point wise description of the results found out from the study
conducted.
This final part of the project includes the conclusion of the entire study and the
scope for further study.

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2.1 LITERATURE REVIEW
Literature review includes the theoretical and methodological contribution to a

particular topic. The literature review about Cost Reduction and Control will give a
brief idea about the studies conducted on this topic. From those studies the
researcher will get a brief idea about how the study will be conducted by others and
how the researcher should conduct the study. In this chapter the study conducted by
various persons are included. And the theoretical review about the topic will give a
good knowledge about the topic. By understanding these details the researcher will
be getting an idea about on which part the study is to be conducted.
A literature review is a written document that presents a logically argued case

founded on a comprehensive understanding of the current state of knowledge about
a topic of study. This case establishes a convincing thesis to answer a study's
question. Generally, the purpose of a review is to analyze critically a segment of a
published body of knowledge through summary, classification, and comparison of
prior research studies, reviews of literature, and theoretical articles.
BRAND ASSOCIATIONS
According to Aaker (1991), brand associations are the category of a brand‟s

assets and liabilities that include anything “linked” in memory to a brand (Aaker,
1991). Keller (1998) defines brand associations as informational nodes linked to the
brand nodes in memory that contain the meaning of the brand for consumers. Brand
associations are important to marketers and to consumers. Marketers use brand
associations to differentiate, position, and extend brands, to create positive attitudes
and feelings toward brands, and to suggest attributes or benefits of purchasing or
using a specific brand.
Consumers use brand associations to help process, organize, and retrieve

information in memory and to aid them in making purchase decisions (Aaker, 1991,
pp. 109-13). While several research efforts have explored specific elements of brand
associations. No research has been reported that combined these elements in the
same study in order to measure how they are interrelated.

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Aaker (1991) defines brand associations as anything linked in memory to a

brand. Three related constructs that are, by definition, linked in memory to a brand,
and which have been researched conceptually and measured empirically, are brand
image, brand attitude, and perceived quality. We selected these three constructs as
possible dimensions or indicators of brand associations in our conceptual model. Of
the many possible components of brand associations we could have chosen,
We selected these three constructs because they:

1. They are the three most commonly cited consumer brand perceptions in the
empirical marketing literature;
2. They have established, reliable, published measures in the literature; and
3. They are three dimensions discussed frequently in prior conceptual research
We conceptualize brand image (functional and symbolic perceptions), brand

attitude (overall evaluation of a brand), and perceived quality (judgments of overall
superiority) as possible dimensions of brand associations.
Related journals
 “The effects of brand associations on consumer response''. Journal of
consumer marketing, VOL. 18 NO. 5 2001, pp. 410-425, # MCB university
press, 0736-3761
Authors: A. BeleÂn del RõÂo, Rodolfo VaÂzquez, VõÂctor Iglesias:
Faculties of Ciencias Economicas, University of Oviedo, Spain
 An Evaluation of Brands Image, Product Attributes and Perceived

Quality of a Selected Consumer Non-durable Product
Journal of Administration and Management Review Volume 19, No.2, August
2007
Author: Md. Enayet Hossain, Assistant Professor, Marketing Department,
Rajasthan University, Bangladesh.
 A Study of brand Preference: An Experiential View: A Thesis Submitted
for the degree of Doctor of Philosophy by Reham Shawky Ebrahim, Brunel
Business School, April 2013

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BRAND PREFERENCE
Brand preferences represent consumer dispositions to favour a particular brand

(Overby and Lee, 2006). It refers to the behavioural tendencies reflecting the extent
to which consumers favour one brand over another (Hellier et al., 2003; Zajonc and
Markus, 1980). Brand preference is close to reality in terms of reflecting consumer
evaluation of brands. In the marketplace, consumers often face situations of
selecting from several options (Dhar, 1999).
Here summarize major contributions of significant studies and articles to the

body of knowledge under review, maintained the focus established in the
introduction. Evaluated the current "state of the art" for the body of knowledge
reviewed, pointing out major methodological flaws or gaps in research,
inconsistencies in theory and findings, and areas or issues pertinent to future study.
The role of experience is limited to the impact of its type on shifting preference
level. Most of prior studies are partial and focusing on one or two antecedents of
brand preferences. In addition to these drawbacks, the studies also ignore
consequences determining the consumer purchase decisions. Based on these
limitations in the literature, a lack of understanding of how consumers develop their
brand preferences was identified.
Accordingly, the aim of this study is to develop a model that provides an

understanding of how brand associations and brand experiences determine brand
preferences and to investigate its impact on brand repurchase intentions. In this
model, the brand knowledge is defined by attribute-based beliefs, referring to
consumers‟ salient beliefs about the brand intrinsic cues, and non-attribute beliefs,
reflected in the price, appearance, brand personality, and self-congruity. Therefore,
the relative importance of brand associations‟ factors contributing to brand
preference is determined. Furthermore, the model addresses the interactions between
the brand knowledge and brand experience in shaping brand preference. Thus,
addressing how the associations reflect embedded value in the brand offerings
influencing consumer preferences.

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The findings confirm that brand associations are the key sources of brand
preferences. In addition, all the factors of brand associations have a direct positive
impact on brand preferences.
Prior Studies on Brand Preference
The prior studies on brand preferences can be divided into two categories:
consumer-oriented factors and brand-oriented factors.
The first group of studies focuses on consumer-related factors. Consumer

characteristics can be classified according to cultural, social, psychological and
personal differences. Among these characteristics, self-concept is the only variable that
plays a significant role in determining consumer preferences (Dolich, 1969; Green et
al., 1969; Grubb and Grathwohl; 1967; Grubb and Stern, 1971; Hong and Zinkhan,
1995; Hughes, 1976; Ross, 1971; Sirgy, 1982).
Moreover, several studies findings reveal the significant impact of consumer

lifestyle on brand preferences (Andreasen, 1984; Lee et al., 2007; Mathur et al., 2008;
2003; Orth et al., 2004). According to these studies, consumers cope with changes in
events or status by changing his lifestyle and preferences. The changes made depend on
the level of stress of the event experienced by consumer. Thus, the change in
preferences is a consequence of coping behaviour and not the event itself (Mathur et
al., 2003).
Even more, the consumer demographics are confirmed in most studies to have
significant but low impact on brand preferences (e.g. Bass and Talarzyk, 1972; Jamal
and Goode, 2001). The studies that support the significant impact of gender and age on
consumer preferences are conducted among groups of young consumers (Hogg et al.,
1998; Lambert, 2008; Moschis et al., 1984). Also, Perez et al. (2011) supports the
homogeneity of preferences across the inter-generation since preferences are
transferred from parents to their children. These results contradict the fact that
consumer preferences are heterogeneous (Horsky et al., 2006) and that each consumer
has an ideal brand that fit his characteristics (Schmitt and Schultz, 1995).

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The second group of studies focuses on brand-related factors. This category

focuses on the impact of brand attributes on developing consumer preferences for
brands. Brand preference is the result of the brand added-value acquired through the
different responses of consumers to the brand attributes. The brand value can be
endowed by the brand arising from its related attributes and non-related attributes.
Therefore, it represents consumer different responses and the evaluation of brand
functional and symbolic attributes (Farquhar, 1990; Park and Srinivasan, 1994).
Prior work has demonstrated the positive and significant impact of brand equity,
which improves consumers‟ perceptions of the brand (Erdem and Swait, 1998) in the
service industry (Chang and Liu, 2009) and products (Tolba and Hassan, 2009). The
definition of brand equity, as the strength of association between the brand and the
different types of evaluation stored in their memory, is relevant in studying consumer
behaviour (Farquhar, 1990). The impact of brand equity on consumer preferences is
measured at the aggregate level without investigating the impact of its different
dimensions (Chang and Liu, 2009; Cobb-Walgren et al., 1995).
In a recent study, Tolba and Hassan (2009) examine the impact of different
dimensions forming brand equity: knowledge equity, attitudinal equity and relationship
equity on brand preference.
The results support the significant impact of relationship equity, consumers‟

experiences, on brand preferences of users. For non-users, their preferences of brands
are affected by attitudinal equity, functional utility and symbolic image. .
Other prior research focuses on the impact of different types of attribute on brand
preference, especially non-related attributes: price (e.g. Monroe, 1976; Moon and Voss,
2009), appearance (e.g. Creusen and Schoormans, 2005; Creusen and Schoormans,
1998), brand personality (e.g. Kim et al., 2011) and self-congruity (e.g. Hu et al., 2012;
Branaghan and Hildebrand, 2011; Jamal and Al-Marri, 2007). In addition, Sääksjärvi
and Samiee, 2011) demonstrate the significant positive impact of brand image on brand
preference. This retains the importance of the different evaluative aspect of the brand
attributes in consumer preference development.

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2.2 THEORETICAL BACKGROUND
Theoretical background is a proposed way of thinking about potentially related

events. Theoretical background contains built in theories; they cannot be simply
reduced to describing a set of observations.
BRAND
The brand is conceptualized as a node in memory, which allows other information
about the brand to be “anchored” to it (Aaker 1991). The conceptualization of a
network of brand associations in memory with brand as a central core has been put
forward by many others (Killer 1993, Holden 1993, Holden & Lutz 1992). A brand that
is not considered cannot be chosen (Baker etal. 1986). Further, the probability of the
brand being chosen is a condition of the number of other brands in the consideration
set. Consumers may employ heuristics (decision rule) to buy only familiar, well-
established brands (Roselius 1971, Jacoby et al. 1977 both cited in Keller 1993). For a
consumer to buy a brand positive attitude must first be made but brand attitude cannot
be formed and intention to buy cannot occur unless brand awareness occurs (Rossister
& Perey, 1991).
Fig 2.1: Brand Equity conceptual model
Brand
Customer trend
associations
Brand
acceptance
Customer Perceived quality
knowledge
Brand
Equity Awareness of
Brand Brand
Customer trend
Power
Loyalty to
Trust to Brand Brand
(Source: journal of contemporary research in business, February 2012 vol 3)

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Although there has not always been agreement on how to measure brand image
(Dobni and Zinkhan, 1990), one generally accepted view is that, consistent with an
associative network memory model, brand image can be defined as perceptions about a
brand as reflected by the cluster of associations that consumers connect to the brand
name in memory. Thus, brand associations are the other informational nodes linked to
the brand node in memory and contain the meaning of the brand for consumers
BRAND ASSOCIATIONS
Brand Associations are not benefits, but are images and symbols associated with a
brand or a brand benefit. Brand association is anything which is deep seated in
customer‟s mind about the brand. Brand should be associated with something positive
so that the customers relate your brand to being positive. Brand associations are the
attributes of brand which come into consumers mind when the brand is talked about. It
is related with the implicit and explicit meanings which a consumer relates/associates
with a specific brand name. Brand association can also be defined as the degree to
which a specific product/service is recognized within its product/service class/category.
While choosing a brand name, it is essential that the name chosen should reinforce an
important attribute or benefit association that forms its product positioning.
Brand Associations are not benefits, but are images and symbols associated with a
brand or a brand benefit. Associations are not “reasons-to-buy” but provide
acquaintance and differentiation that‟s not replicable. It is relating perceived qualities
of a brand to a known entity. For instance- Hyatt Hotel is associated with luxury and
comfort; BMW is associated with sophistication, fun driving, and superior engineering.
Most popular brand associations are with the owners of brand, such as - Bill Gates and
Microsoft, Reliance and Dhirubhai Ambani.
In line with this criterion, Keller (1993, 1998) classifies brand associations into
three major categories: attributes, benefits and attitudes. Attributes are those descriptive
features that characterize a brand, such as what a consumer thinks the brand is or has
and what is involved with its purchase or consumption. Benefits are the personal value
consumers attach to the brand attributes, that is, what consumers think the brand can do
for them. Brand attitudes are consumers' overall evaluations of a brand.

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Fig 2.2: Brand Associations concept
Brand
associations
Brand Perceived Brand

Image Quality attitude
i1 i2 i3 i4 i5 i6 i7 i8 i9
Where i1, i2, i3...Etc are the informational nodes of the Brand
(Source: journal of consumer marketing, vol. 18 no. 5 2001)
BRAND IMAGE:
A brand image is the totality of consumer perceptions about the brand, or how
they see it, which may not coincide with the brand identity. Brand image is defined
as the reasoned or emotional perception consumers attach to specific brands (Dobni
and Zinkhan, 1990). A brand image consists of functional and symbolic brand
beliefs. Brand image associations are largely product category specific and measures
should be customized for the unique characteristics of specific brand categories
(Park and Srinivasan, 1994; Bearden and Etzel, 1982). Brand benefits are the
foundation of brand image. Chiranjeeb (1997) claimed that a brand name itself is the
foundation of brand image. In a broad sense purchase decisions are based almost
solely upon the attitude existing at the time of purchase. The factors which may
prevent consumers from converting their attitudes into intentions and buying
behavior are very numerous and frequent (Wallen dorf, 1979).

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BRAND ATTITUDE:
It is one of the pervasive notions in all of the Marketing (Gillbert 1995). Formal
attitudes are learned predispositions to respond to some object in a consistent way. The
response may be favorable or unfavorable (Wallendorf, 1979). Consumers learn these
attitudes over time by being exposed to the object directly or through receiving
information about the object. Our learned attitudes serve as general guides to our overt
behavior with respect to the attitude object, giving rise to a consistently favorable or
unfavorable pattern of response.
PERCEIVED QUALITY:
Perceived quality is defined as the consumer's judgment about a product's overall

excellence or superiority (Zeithaml, 1988; Aaker and Jacobson, 1994). For example,
Sethuraman and Cole (1997) found that perceived quality explains a considerable
portion of the variance in the price premium consumers are willing to pay for national
brands. The perceived quality of products and services of strong brands add value to
consumers' purchase evaluations. We propose that consumers have more highly
developed brand association structures for familiar brands than for less familiar ones,
and hence are more likely to have multi-dimensional brand associations for familiar
brands compared to less- or unfamiliar brands.
Product Attributes:
Product attributes are the benefits of products, and these benefits are the surface
means used in advertisement and promotion offer to connect the brand with a
motivation which influence brand attitude (Rossister, 1987). Nowadays, companies try
to differentiate their products emphasizing some trivial attributes which in a real sense
create no differences from those of its competitors‟ or, sometimes they are not actually
used by consumers at all (Chowdhury & Islam 2003). It is evident that product
attributes are most salient to the consumers (Garvin, 1983, 1984). In reality, during the
decision for dealing, it is assumed that consumers not only consider the present value of
the products but also take the future performance or future associated with the product
attributes into consideration (Chowdhury and Islam, 2003).

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Objectives of Brand Associations
The creation of a brand implies communicating a certain brand image in such a

way that all the firm's target groups link such a brand (and thus the products sold using
its name) with a set of associations. Brand equity research in marketing, as exemplified
by Aaker's (1991, 1996) conceptualization and Keller's (1993, 1998) framework, is
rooted in cognitive psychology and focuses on consumer cognitive processes. Thus,
this view of brand equity proposes that:
 The brand creates value for both the consumer and the firm.
 The brand provides value to the firm by generating value for the consumers.
 Consumers' brand associations are a key element in brand preference

formation and management.
The issue of brand equity has emerged as one of the most critical areas for
marketing management. Despite strong interest in the subject, however, to date little
research has been conducted in order to investigate which brand associations have the
strongest effects on consumer behavior. Some of these works only adopt a theoretical
perspective, without performing an empirical test (Keller, 1993, 1998; Teas and
Grapentine, 1996). Moreover, several of the empirical studies made analyze the overall
relation between brand image and consumer response, that is to say, without
considering the different dimensions of brand associations.
The brand associations are status function which expresses the feelings of
admiration and prestige that the consumer may experience upon using the brand
(Solomon, 1999). According to Vigneron and Johnson (1999), this function is based on
five characteristics of the brand:
(1) Symbol of the individual's power and social status;
(2) Reflection of social approval;
(3) Exclusivity or limitation of the offer to a small number of people;
(4) Contribution of emotional experiences; and
(5) Technical superiority.

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BRAND PREFERENCE
Consumer brand preference is an essential step in understanding consumer

brand choice; has therefore always received great attention from marketers. Horsky
et al. (2006) demonstrate the importance of incorporating information about brand
preference into the brand choice model. Brand preferences reveal the type of
attributes a brand possesses, to strengthen its position and increase its market share.
Moreover, it forms a critical input in developing a company‟s successful brand
strategy, and gives insight for product development. However, the shift to
experiential marketing broadens the role of the brand from a bundle of attributes to
experiences.
Brand preferences reveal the type of attributes a brand possesses, to strengthen

its position and increase its market share. Moreover, it forms a critical input in
developing a company‟s successful brand strategy, and gives insight for product
development. However, the shift to experiential marketing broadens the role of the
brand from a bundle of attributes to experiences.
The technological advancement helped increasing the similarities between the

brands attributes and product commoditization. Consequently, consumers cannot
shape their preferences among brands using rational attributes only. They seek the
brand that creates associations; intrigue them in a sensorial, emotional, and creative
way. Companies‟ competitiveness in such market has, therefore become
increasingly difficult. Their survival requires building their competitive advantage
by delivering memorable associations, which would influence consumers‟ brand
preferences, and consequently stimulate consumers‟ purchase decisions.
However, the role of brand personality on brand preference is realized through

brand associations. The findings also support that the impacts of the general brand
attributes and appearance on brand preference are partially mediated by brand
associations. Furthermore, brand preference positively impacts repurchase
intentions.

20
3.1 INDUSTRY PROFILE
Tea is the oldest and the most widely consumed and the lowest cost beverage in
the world after water. It is considered to be one of the major components of world
beverage market which provides more than 2,000 different types of tea for
consumption. Though several varieties of tea such as green tea and herbal tea are now
becoming popular, by far the most important tea to international trade is black tea. In
the global tea market, China, India, Kenya, and Sri Lanka are the major producers and
also play a major role as exporters of tea, while Russia, U.K., U.S., Pakistan, and
Japan form the major markets for these exports. Consumer awareness of the health
benefits of tea and premium have been the growth drivers of the tea market recently.
In this domain the global tea industry is largely dominated by India, the second largest
producer and one of the largest consumers of tea. India is succeeded China and
followed by Kenya Sri Lanka, Vietnam and Indonesia in the production hierarchy of
countries.
Tea cultivation is not done everywhere and anywhere. Its cultivation is
restricted to certain specific regions in the world due to specific requirements of
climate and soil that suit its cultivation. Among the major tea producing countries that
are located in the continent of Asia are China, India, Sri Lanka are the major
producers. Kenya, Malawi, Rwanda, Tanzania, Uganda are major producers in
African tea growing countries which are located mostly around the tropical regions.
Apart from these regions, certain regions in South America like Argentina and Brazil
produce tea.
Tea in India is introduced by a British national, Robert Bruce who discovered
tea plants mounting in the upper Brahmaputra valley in Assam and neighboring areas
some two hundred years back from today. It was in 1838, Indian tea that was
developed in Assam was sent to the then Great Britain for the first time, for public
sale. Therefore, tea in India is grown primarily in the domains of Assam, West
Bengal, Tamil Nadu and Kerala. Apart from these major regions, tea is also grown in
little quantities in Karnataka, Himachal Pradesh, Tripura, Uttaranchal, Arunachal
Pradesh, Manipur, Sikkim and Meghalaya.

21
3.1.1 INTERNATIONAL SCENARIO
Tea is one of the most popular and lowest cost beverages in the world and
consumed by a large number of people. Owing to its increasing demand, tea is
considered to be one of the major components of world beverage market. The global
market for hot beverages (coffee and tea) is forecasted to reach US$69.77 billion in
value and 10.57 million tons in volume terms by the year 2015 (GIA, 2011). Tea
cultivation is confined only to certain specific regions of the world due to specific
requirements of climate and soil. Majority of the tea producing countries are located
in the continent of Asia where China, India, Sri Lanka are the major producers.
African tea growing countries are located mostly around the tropical regions where
Kenya, Malawi, Rwanda, Tanzania, Uganda are major producers. Apart from these
regions, some quantities of tea are also being produced in South America
(Argentina, Brazil and others), the Near East (Iran and Turkey) and the CIS (Russia
and Georgia).
Globally, tea is cultivated in 36, 91,938 ha with an annual production of

4066596 thousand Kg (Anonymous, 2010). Over the years, both area and production
has increased substantially along with global trade of tea. Being an agricultural
commodity whose production is bound to fluctuate due to vagaries of nature, the
prevailing differences between production and demand is well below any reasonable
limits. In this article, an attempt has been made to project the global scenario of tea
in terms of area, production, yield, export and import of tea over the last two
decades. Amongst tea producing countries, the principal producers are China, India,
Sri Lanka, Kenya and Indonesia. These five countries account for 77% of world
production and 80% global exports.
Area under Tea plantation

The last decade of 20th Century saw a sluggish rate of increase in total area
under tea. During 1991, tea was cultivated globally in 2563.75 thousand ha which
increased to 2661.88 thousand ha with a compound growth rate of 0.42% during that
period. With the advent of 21st century the world tea industry saw a steady increase
in the overall area under tea.

22
During 2001 the area under tea was 2727.42 thousand ha which increased to
3691.89 thousand in 2010 with a compound growth rate of 3.42% during this period.
In terms of area under tea plantation, on an average during the last two decade
(1991 – 2013), China lead (45%) the world followed by India (21%), Sri Lanka
(7%), Kenya (5%), Vietnam (3%)
Fig 3.1 Percentage of share of area under tea in major Tea

producing countries of the world
Others India
Kenya 19% 21%
5%
Vietnam
3%
Sri Lanka China

7% 45%
(Source: accessed from Internet)
EXPORT
World Tea export recorded a compound growth rate of 2.31% during 1991-
2000 where export increased from 1078.17 m kg to 1324.65 m kg. Almost similar
compound growth rate was observed in the first decade of 21st Century where
export increased from 1400.55 m kg in 2001 to 1738.41 m kg in 2010.
On an average during the last two decade, in the export front, both Kenya and
Sri Lanka lead the world each with 20% of their contribution followed by China
(17%), India (14%) and others (25%).

23
During the last five years, it has been observed that total world exports averages
41% of total world production and 84% of exports accounted for by six countries
(India, Sri Lanka, China, Kenya, Indonesia and Vietnam).
The largest tea producers India and China drink away most of their own
production and share only a small fraction of exportable tea. Sri Lanka and Kenya,
on the other hand, share only 7% and 5% tea growing area, but are world leaders in
exports, meeting 20 % each of world export needs.
India exported AVT premium tea worth USD 1,264,467 with total quantity of
320,468. Saudi Arabia is the largest buyer of AVT premium tea accounting for
exports worth USD 870,227 followed by United Arab Emirates and Qatar which
imported AVT premium tea worth USD 278,126 and USD 99,272 respectively.
 Cochin Sea accounted for 96.6% of exports followed by Cochin which
account for 3.4% of exports.
 Average price of AVT premium tea per unit is USD 3.95 and average value
per shipment is 3,741
IMPORT
Like export, tea import (either for re-export or for own consumption) has also
shown an increasing trend.
The review of the global scenario of tea in terms of area, production, yield,
exports and imports indicated overall increase in the quantity of tea in the world
market over last two decades and the trend is increasing. So strategies must be
adopted to meet up the challenges in global demand for tea in the coming years.
Besides, general consumption of tea, health benefit effects of tea need to be
promoted more vigorously to trap the non-conventional areas of tea in the world for
an expansion in the consumption. Value addition and diversification for a wide
range of tea products need to be developed for balancing the supply demand chain.
Through these ways, the global tea industry can think of sustainability in future
keeping in mind the climate change across the globe.

24
3.1.2. NATIONAL SCENARIO

Beginning of Tea in India
The discovery of indigenous tea in Assam in 1823 led to the origins of the tea
industry in India. However, the Calcutta Agricultural Society differs from the above
opinion. It has consistently held that in the early 1700's, the ships of the East India
Company frequently brought the tea plants in the country by way of curiosity. In
1788, Sir Joseph Bank recorded the existence of indigenous tea growing wild in
Coochbehar and Rangpur districts of Bengal and suggested the cultivation of this
plant. The wild teas of Cochlear confirmed the first discovery of indigenous tea in
India.
Birth of Indian Tea Industry

The birth of Indian tea industry was marked by the discovery of indigenous teas
plant in Assam in 1823 by Robert Bush. This received momentum when the East
India Company in 1833 lost the tea trading monopoly in China. In 1835, a scientific
deputation was sent to Assam to report on prospects of the tea industry and the team
saw tea plants in many parts in the hills between Assam and Burma. In 1836, C.A.
Bruce was made the Superintendent of Tea Forests. Among others, he formed the
Bengal Tea Company at Calcutta with the objective of purchasing the produce from
the East India Company‟s tea plantations in India. Ultimately tea cultivation was
commissioned in many districts in India wherever there was some hope of a success.
Within a few months, India along with Sri Lanka dominated the world tea
trade/market.
Present status of Indian tea in Global position

India is the largest producer of black tea as well as the largest consumer of tea in
the world. Currently, India produces 23% of total world production and consumes
about 21% of total world consumption of tea – nearly 80% of the tea produced is
consumed within India. Over the last 20 years, India‟s world ranking as an exporter
has come down from number one to number four, in the face of stiff competition
from Sri Lanka, Kenya, and China.

25
3.2 COMPANY PROFILE
3.2.1 History
In 1925, Alfred Vedam Thomas demolished a myth. He proved that it was not
just the British who could manage plantations by starting a 300 acre tea plantation at
Pasuparai, Tamil Nadu. From the original tea plantation, AVT has made steady
progress over the years moving on into rubber, coffee, vanilla, pepper and
cardamom. The seeds of AV Thomas group of companies were planted when Mr.
AV Thomas purchased grass land in a place named Pasuparai in Tamil Nadu in 1925
and planned tea saplings. On purchasing their estate Mr. AV Thomas floated various
companies under his management. The company was AV Thomas and Company
Limited. After this a number of companies were formed under his leadership in
different locations in Kerala. AVT Natural Products Ltd (AVT NPL) is a public
limited company promoted by A.V Thomas group as a strategic diversification from
the traditional plantation business of A.V Thomas Group. AVT Naturals formed in
1994 belongs to the renowned AVT Group of Companies and in the last 16 years
has grown manifolds.
The company‟s contract farming model ensures “Quality at Source”. Marigold
business is an integrated project starting from seed development and going on to
Oleoresin. The contract farming model followed by AVT Naturals has been
regarded as one of the best in the industry.
3.2.2 Location
Kerala is the land of tea plays a significant role in the global tea market. AVT
Naturals deals with a premium range of exotic spices and Tea products that come
straight from Kerala, Tamil nadu and Assam. AVT NPL is located in the port city of
Cochin, Kerala, India. Cochin is referred to as the „queen of the Arabian Sea‟ or „the
spice capital of the World‟. Having been strategically located in Cochin, AVT NPL
has strategic advantage of proximity to the source of raw material and logistic
advantage of import, export facilities owing to the sea, air and rail transport modes
being within its reach.

26
AVT Naturals Product Limited (AVT NPL)

The AVT NPL started its operation by establishing a Soybeans Extraction plant in
Pandurana, Madhya Pradesh, which produces high quality of Soya-oil and oiled cakes.
The oil is used as a raw material by the domestic vegetable oil industry while
the cake was mainly exported to abroad.
In 1994 AVT Natural Products Limited, setup its second extraction unit at
Vazhakulam near Aluva in Kerala. The AVT Group of companies after 85
years of its operation has presence in Indian agri-business sector
including plantations, aero processing, plant biotechnology and natural food
and food ingredients. AVT NPL is 100% export oriented unit located in
Kochi, Kerala the spice capital of the world.
AVT NPL is a member of AV Thomas group of companies with interest in

plantations, leather goods, tissue culture and medical diagnostics. AVT NPL is
one of the largest contract framing companies in India, with proven
capabilities in backward integration. There are two companies under the spice
project, AVT NPL and AVT McCormick in 1994.
AVT GROUP OF COMPANIES
1. AVT Natural Products Co
AVT Natural Products is the world's largest Oleoresin pigment manufacturer

and exporter with large volume exports to food processing and cosmetic
industries in Mexico and the USA.
2. AVT McCormick ingredients LTD
In a strategic joint venture with McCormick & Co Inc-USA, AVT distributes

a wide variety of spices and curry powders for the international market.

27
3. AVT Agro chemicals
AVT manufactures and markets pesticides formulated under direct

license from Bayer AG, Germany, with a distribution network of over 5000
outlets spread across India.
4. AVT leathers
The company manufactures a wide range of leather products, catering to

licensee requirements of various international brands including Ralph Lauren
and Pierre Cardin.
5. AVT Biotech
AVT Biotech is the leading exporter of tissue culture plants and operates
the largest bio-technology facility in India, producing 8 million plants for the
Indian market and 6.5 million for the international market annually.
6. AVT Rubber
Over 2 million kilograms of rubber is produced annually at AVT's rubber

plantations. AVT Rubber produces various grades like centrifuged latex, crumb
rubber and dipped rubber goods.
7. AVT Consumer Products Division
AVT Consumer Products Division (CPD) markets some of South

India's favourite brands of tea. AVT also has a significant presence in the
international market for various bulks, commoditized teas. Cardamom brands
like Raihana and Shahi are already being exported and AVT is poised to enter
the coffee export market soon. On the anvil are plans to diversify into value
added services like vending machines and a chain of tea parlours. Primary
among the CPD's strengths is the ability to innovate constantly pre-determining
the needs of the consumer.

28
Table 3.1 AVT Group of Companies
No Year Unit Activity
1 1925 The high land produce company limited Tea and cardamom
2 1934 The midland rubber produce company Tea, cardamom and rubber
limited exports
3 1935 AVT and company limited Trading export and manufacturing
4 1936 The Kalpatta estate limited Tea and cardamom
5 1937 The Rajagiri rubber produce Rubber, coffee export
6 1941 The Nelliampathy tea produce company Tea and coffee export
limited
7 1943 The shevaroy estate limited Tea, coffee, cardamom and edible
oil
8 1946 Neelamalai agro industries limited Tea trading and export
9 1976 AVT investments limited Financial and investment

company
10 1976 AVT leather and allied products Ltd Leather goods and export
11 1976 Nelliyampathy investments limited Finance
12 1980 Hawthrone investments limited Finance and investments company
13 1989 Midland latex products limited Latex examination glover
14 1994 AVT naturals products limited Spice, oleoresins and essential oil
15 1995 Rush AVT medicals limited Manufacturing caters
(Source: accessed from company records)

29
Major Areas of Business
AVT Group of companies has stopped up into varies areas of business. The
divisions in the AVT group are:
Figure 3.2 Different areas of business
Tea
Coffee
Leather
and
Goods
Spices
Agro Plant
Chemicals biotechnology
AVT
Group
Agencies Rubber
Project Commodity
Engineering Export
Oil and
Extractions
(Source: accessed from company website)

30
Company Turnover
Today AVT is a Rs. 1000 crore company with a strong local and overseas
presence in branded packaged goods, bulk commodities, beverages and the spices
market. AVT NPL holds a major share in the Indian spice industry and the present
turnover of the company is about 87 Crore rupees.
Brand Associations of AVT Tea
Brand Associations of AVT Tea are the informal nodes linked to the brand
node in memory. It contains meaning of the brand as perceived by consumers. As
in case of AVT tea products, Brand associations come in three major forms
 Attributes
 Benefits
 Attitudes
Brand associations are the category of a brand‟s assets and liabilities that
include anything “linked” in memory to a brand. Keller (1998) defines brand
associations as informational nodes linked to the brand node in memory that
contains the meaning of the brand for consumers. Brand associations are important
to marketers and to consumers. Marketers use brand associations to differentiate,
position, and extend brands, to create positive attitudes and feelings toward brands,
and to suggest attributes or benefits of purchasing or using a specific brand.
When delimiting brand functions the greatest difficulty lies in the small
number and the diverging nature of studies examining their dimensionality.
Furthermore, most works do not make an explicit distinction between product
functions and brand functions. Product functions are associations related to the
physical or tangible attributes, and so are present in all products, even in those sold
without a brand or with an unknown brand. Brand functions, on the other hand, are
associations related to intangible attributes or images added to the product thanks to
its brand name, that is, they represent benefits that can only be obtained from
products with a brand.

31
Figure 3.3 Brand Associations of AVT Tea
AV
Thomas
Tea Natural
Plantations products
South
Strongest Tea
Indian Tea
,consistently
Brand
AVT
TEA
Quality Acceptability
Discount
Availability
coupons
AVT
Affordability
Premium
(Source: accessed from consumer survey)
Other informational nodes which give Brand Associations of AVT Tea are given
below
 Premium tea bags

 South Indian Tea giant
 Green logo of AVT
 CSR activities
 House wives
 Spices
 Natural Flavours

32
.
. 3.2.4 BUSINESS PROFILE
AVT has been successful in tying up with large format stores to supply
commodities for store brands. The Food World tie-up is a notable example. AVT
is open to co-branded associations wherein branding rights are exclusive but the
products are made to retail chain specifications. AVT also enters into agreements
wherein brand ownership rests with the retail chain. They are constantly striving
to add value to the retail segment and welcome associations that are mutually
beneficial.
Board of Directors
Chairman : Mr. Ajith Thomas
Managing Director : Mr. M S A Kumar
Directors : Mr. Habib Hussain
Mr. P. Shankar I.A.S (Retd)
Mr. Shyam. B. Ghia

Mr. A Alagappan
Registered Office
64, Rukmini Lakshmipathy Salai, Egmore Chennai-600 008,
E-mail: shareholder@avtspice.com.
Subsidiary Companies
 AVT NPL, 117 Philip street, #05-01 Grand building, Singapore.
 Heilong Jiang AVT Bio- Products Ltd (sub of AVT NPL) Shuang Yashan
state farm, Boston, China.

33
.2.5 Mission, Vision, Values & Team

Mission
 To be a Global Leader in Marigold Extracts through a fully integrated supply

chain with excellence in Plant Science & Agriculture and Logistics Management.
 To achieve growth and stability in performance by diversifying to value added
natural ingredients for synergistic business segments through development of
product research and technology base.
 To bring in highest level of efficiency, traceability, food safety and quality in the
supply chain through Contract Farming.
 To establish brand equity for natural ingredients through development of
consumer marketing skills.
 To comply flawlessly with ever changing international statutory regulations for
our business segments.
 To consistently add value in our business to deliver superior returns to all
stakeholders-customers, employees, shareholders, suppliers, and society
Vision:
 To be a global leader, enriching lives through natures on ingredients as food,
nutrition, and medicine for mankind.
 Provide total customer satisfaction through continuous improvement in
products, process and services.
 Develop and motivate employees through ongoing HRD programs.
Values
 Constantly strive for value in whatever we do.
 Belief in ethical business and transparency.
 Encourage individual excellence and foster environment for team work.
 Know the business environment, product and customers well update
knowledge.
 Respect the neighborhood and individuality of each customer, supplier, and
employee.

34
Team
 AVT Natural has 160 permanent dedicated employees in its direct rolls.
 450 foot soldiers supporting contract farming advising farmers on Good
Agricultural Practices (GAP).
 Our dedication to total customer satisfaction and adherence to highest quality
standards have established our name to be reckoned with in the food
ingredients business.
3.3 PRODUCT PROFILE
AVT NPL is an ISO 9002 certified company which produces the best quality
of black Tea from its 100% export oriented unit highly competitive world market of
USA, EUROPE and other Asian countries.
Value Added Tea
1. Decaffeinated Tea
Decaffeinated Tea India and China are fast emerging as a low cost hub for
various manufacturing activities and toll processing of tea wherein caffeine is
solvent extracted is no different altogether. India holds the competitive advantage
because of strict food safety laws and consistent and reliable quality offered by
Indian vendors. AVT as a group is a prominent player in beverage industry in India
and their unquestionable expertise in tea has led to various synergistic research and
development activities which helped AVT NPL gaining stronghold in decaffeinated
tea segment. We have successfully invested in solvent based extraction wherein
caffeine is removed without compromising tea quality. Today with processing
capacity of 7000 MT and actual capacity much more than that, we are one of the
largest toll processor of teas in India. Our customer base include global tea majors
like Harris Freeman Our dedicated decaffeination plant and our inbuilt thrust on
Quality, Food Safety and GMP practices assures world class products for the
customers.

35
2. Green Tea
 Beverage Grade-Polyphenols 35% to 45% (Catechins 20% to 30%,

EGCG 5 % to 15%) Green tea extract with high caffeine (20% to 80%)-
Thermogenic
 Nutraceutical Grade- Polyphenols 85% to 95 % (Catechins 65% to
75%,EGCG 40% to 45%)
 Application as antioxidant in food-EGCG 45% Meat Industry, Oil
Industry, Cosmetics, Oral Hygiene
3. Instant Black Tea

 Instant Black Tea –cold water soluble-Iced tea
 Instant Black Tea –hot water soluble
BULK TEA
AVT CPD exports various grades of fine quality black tea in both dust
and leaf forms to Russia, the Middle East and Europe. This division has
contributed consistently and significantly to the overall growth of the company in
spite of the stringent quality and satisfaction measures that the export market
imposes.
The types of tea that can be procured from AVT are:
TEA
 AVT Rajah
 AVT Premium
 AVT Premium Tea Bags
 AVT Assam
 AVT Gold Cup
 AVT manalaroo

36
1. AVT Rajah
AVT Rajah is a popular blend of South Indian teas

arrived at after tasting 25,000 cups of tea. A high quality
golden colored blend with a refreshing full-bodied
flavor, Rajah packs taste and freshness into every cup.
2. AVT Premium
The flagship brand and market

leader in the southern states of Kerala
and Tamil Nadu, AVT Premium is a
blend of dust teas from the finest high-
grown tea gardens of Assam and South
India. A strong dark brew with a unique pungent flavor, AVT Premium is a
favourite primarily for its strong taste and consistency.
3. AVT Premium Tea Bags
For convenience seekers, AVT Premium is

also available in tea bags. A „Perflo‟ system
allows quick, complete infusion of tea while
providing the real taste of traditionally
brewed tea.

37
4. AVT Assam
AVT Assam is a rich blend of the finest Assam teas. Every cup provides a
robust, full-bodied taste with the rich flavour of real Assam tea.
5. AVT Gold Cup
Discover the pleasures of a truly sensory

experience in this finely crafted blend of
100% Assam Tea. From the invigorating, full
bodied flavour of Assam Tea to the beautiful
rich color, it is the perfect balance of taste and strength. Go ahead you deserve a
Gold Cup.
AVT Premium Coffee
AVT has recently launched AVT Premium Coffee. An

instant success thanks to AVT‟s ability to understand the
preferences of the coffee drinkers. A 60:40 blend of coffee
and chicory. AVT Premium provides a strong flavour that
resembles traditional filter coffee

38
TEA
 AVT Darbari
 AVT Supreme
1. AVT Darbari
The perfect blend from Assam‟s finest gardens, Darbari is AVT‟s popular leaf
tea. Its heady flavour, unique taste and competitive pricing make AVT Darbari a
very attractive brand in its segment.
2. AVT Supreme
AVT Supreme is a premium blend of the finest Assam CTC leaf. It is strictly
for the discerning tea drinker and is known for its uniquely rich flavour and
aroma.

39
The Production Procedure: Delivering quality at every point

As soon as the purchases are affected, the details of all teas produced are fed
into AVT's proprietary software "Panchathantra". Blend sheets are generated using
this application.
The process:
Once the blend sheets are generated, the samples pertaining to the teas used
are drawn from the warehouses. Representative table bulks of the blends are
prepared. These table bulks are then tasted against the various standards and
competition. The volumes are recorded and only those blends that match up to the
standards are passed for blending. Finally, blend sheets are issued to the various
blending units.
The place:
AVT has state of the art manufacturing facilities in Coimbatore and Kochi.
All the teas are blended using Vertical Tower Blenders, which are fitted with rare
earth magnets and sorting machines to remove any stray iron filings and other
extraneous matter (like jute strings) from the teas. Once the blending is complete,
the blended tea is once again tasted against the standard. The blended tea is sent into
the market for testing and certification. After proper testing the blends are released
for packing.
The product:
The blended teas are packed with state of the art packing machinery
installed in our units. All necessary care is taken to see that our products meet PFA
norms. Prior to the actual blending process, a representative table bulk of the blend
order is made and is tested along with the standard so as to ensure consistency in the
end product. AVT has a modern laboratory that is fitted with the latest testing
equipments in the Coimbatore facility. All our blends are put through statutory
checks required by the PFA Act.

40
DISTRIBUTION NETWORK
Acceptability, Availability and Affordability' is the philosophy at AVT.
AVT constantly ensure that our distribution network is efficient in the rural,
semi-rural and urban markets. The right distribution translates to low cost, high
efficiency and better sales, merchandising and distributions programs. AVT still
holds over 90% of the total distribution in Kerala and Tamil Nadu, which is quite a
remarkable feat considering that there are bigger market players with deeper pockets
and national brands. AVT has 850 distributors across Kerala, Tamil Nadu, Andhra
Pradesh, Karnataka and Orissa.
Table 3.2: Distribution Network coverage of AVT in India
Total retail Retail units AVT %

units in of Distributors
State Market
the state (in AVT (in Coverage
lakh) lakh)
Kerala 9 7.5 127 85%
Tamil Nadu 15 10.5 284 70%
Andhra 20 8 169 40%

Pradesh
Karnataka 16 4 137 25%
Orissa 12 5.4 133 45%
(Source: accessed from company website)

41
MAJOR SPICES EXPORTED
AVT NPL is an ISO 9002 certified company which produces the best quality spice
oil extracts and colour pigments from its 100% export oriented unit highly
competitive world market of USA, EUROPE and other Asian countries. Product
Profile of the Company is given below.
 Natural colour
 Marigold extracts Black pepper
 Oleoresin paprika chilly
 Turmeric Hot chilly (capsicum)
 Black pepper (natural) Ginger
 Celery Nutmeg
 Natural flavors
 Black pepper oleoresin
 Celery oleoresin
 Capsicum oleoresin
 Nutmeg oleoresin
 Ginger oleoresin
 Essential oils
 Black pepper
 Celery
 Ginger
 Nutmegs
 Antioxidants
 Rosemary extracts
 Green tea
 New products
 Vanilla extract
 Annatto
 Fenugreek
 Safflower extract

42
Awards and Recognitions
AVT Natural Products won Asia‟s 200 best under A billion by Forbes
magazine in 2012. AVT Natural Products Ltd won last year Emerging India Awards,
constituted for Small and Medium Enterprises in India, for "FMCG Food and Agri
Business Category". All SMEs having maximum net worth up to Rs. 500 million
were eligible for this award.
AVT Naturals have shared second prize of Kerala State Pollution Control
for the excellence in pollution control by large industries in Kerala for 2009/10.
Kerala State Productivity Council Award for overall performance of the company. The
company has bagged this award for the second time. FACT M.K.K. Nair Memorial
Productivity Award 1998-1999.
QUALITY CERTIFICATES
The brand quality and perceived quality of an organization is represented by

number of quality certificates posses by that company. AVT Natural products Ltd has
the following quality certificates, which show their quality production and services
provided to their customers.
 ISO 9001:2008 Certification
 ISO 22000: Food Safety System Certification
 Spice house certificate by the Spice Board of India
 Kosher certificate
 GMP(Good Manufacturing Practice)
 American Institute of Banking International, USA (AIB) 1999 "Superior

rating" in 2002, 2003,2004,2005,2006.
 2001, 2004 consecutive year "lab of the year" for micro technology
worldwide.

43
Code of Ethics
 100% compliance with the law.

 Protection of the property information and confidentiality of information.
 Prohibition against insider trading.
 Giving and receiving gifts of certain values.
 Policies regarding records retention and e-mail access.
 Policies of improper or questionable payments.
Corporate Social Responsibilities
AVT Natural, as a part of its social responsibility identifies the needs of

the neighborhood and fulfils them completely. They support 30,000 small and
marginal farmers with technology to improve their net farm returns and their
livelihood. AVT group respect their neighborhood and all our stakeholders.
 Eye Clinic: Around 40,000 school children were screened and, those who
required vision correction were identified and given the necessary
treatment. This was carried out by the doctors from Shankara Netralaya in
association with AVT Natural Products and Rotary Club, Sathyamangalam.
 Successful cleaning of weeds and waste materials from the Bhavani river
banks and strengthening of the embankments to provide better irrigation
facility to the farming community was carried out.
 Infrastructure of the approach roads to our facility was further rectified.
 Yearly financial assistance offered to the Panchayat for the Polio
Eradication Programme.
 Free weekly medical checkup and assistance provided to the rural
community by doctors of AVT Natural Products at Sathyamangalam.
 AVT has offered numerous facilities in the education sector by providing
basic amenities like computers, laboratory equipments etc. for the students
of neighbouring schools. Cash awards have been endowed on top ranking
students in the final year of their school.

44
4. DATA ANALYSIS
RESEARCH APPROACH:
Survey method was used for this study. It was conducted among the homemakers
of AVT Natural Products who are the current and prospective customers of the AVT
TEA.
RESEARCH DESIGN
Research design is a conceptual structure within which research is

conducted. It facilitates smooth sailing of various research operations to make the
research as effective as possible.
Survey research was used for the study with encompasses measurement
procedures that involves asking questions to respondents. The study was based on
responses given by the customers of AVT Natural Products.
For this purpose a descriptive study was found to be most appropriate. A
descriptive study is undertaken in order to ascertain and describe the characteristics
of the variables involved in the study. Chi-square test and correlation test have been
employed to find out the relationship among variables and the objectives of the
study.
DATA COLLECTION
a. Data Source
The study requires data from both primary and secondary sources.
 The primary data was collected from the customers of the AVT Tea products who
are representative of all sectors of business of the company. Respondents include
both the current and prospective customers of AVT TEA.
 The secondary data was collected from published magazines and articles of the
company, official records, academic books, internet etc.
b. Data Collection Method

Questionnaires were sent to all the selected customers of the company. The
requisite data for the study were collected through structured questionnaires.

45
c. Data collection tool

A structured questionnaire was set with 22 questions asking the
respondents to think about the benefits, perceived quality and other attributes of the
AVT Branded Tea products and their effects of associations on the customers.
The researcher initially prepared a pool of questions which was further
modified and read by the company for the ease of administration.
SAMPLING DESIGN
a. Population
All the items under consideration in any field of inquiry constitute a Universe or
Population. The group of individuals under study is known as population or
universe. Therefore, the universe is the aggregate of all the units to be studied to any
field of inquiry. In this study the population of the homemakers of Ernakulum
district is taken.
b. Sample
Sample size refers to the number of items to be selected from the universe to a
sample. Here the sample size taken for the study is 100.
c. Sample unit:
Every single customer that comes under the list of 100 customers allotted by the
company comes under this list.
CHAPTER OVERVIEW
This chapter contains analysis and interpretation of primary data collected

through structured questionnaire. Percentage analysis was done to know the
cumulative response of respondents for each variable. The responses were tabulated
with the help of bar charts, pie diagrams and doughnuts, whereas the hypothesis for
testing the associations is evaluated using chi-square method. Correlation test has
been employed to find out the relationship among variables.

46
4. DATA ANALYSIS
4.1 Showing the regular customers of AVT Tea

Table 4.1: Regular Customers of AVT NPL (Brand Loyalty)
Number of years Frequency Percentage
5+ years 64 64%
4 years 18 18%
3 years 6 6%
2 years 12 12%
1 year 0 0%
Total 100 100%
(Source: Survey data)
Figure 4.1: Loyal customers of AVT Tea in

70 years
60
50
40
30
20
10
0
5+ years 4 years 3 years 2 years 1 year

Interpretations
The chart indicates that, there is large number of loyal customers using the tea
products of AVT NPL. The number of customers using product above 5 years is 64%,
followed by 18 per cent of customers in four years. Therefore the bar chart shows the
brand loyalty among customers for more than five years.

47
4.2 Showing the most purchased brands of AVT Tea
Table 4.2: Most purchased brands of AVT Tea
No Products Frequency Percentage
1 AVT Rajah 28 28%
2 AVT Premium 55 55%
3 AVT Gold cup 15 15%
4 AVT Assam 2 2%
5 AVT Manalaroo 0 0
Total 100 100
Figure 4.2: Most purchased brand of AVT Tea

60
50
40
30
20
10
0
AVT Rajah AVT Premium AVT Gold cup AVT Assam AVT Manalaroo

Interpretations
The bar chart indicates that, AVT premium Tea has the highest percentage of
customers of about 55. It is followed by 28 per cent of AVT Rajah and 15 per cent of
AVT Gold cup customers. In addition, the customers of AVT Assam and AVT
Manalaroo are very negligible as compared to other brands of AVT NPL.

48
4.3 Respondents preferred brands for Tea consumption

Table 4.3: Most purchased Tea brands
consumers preferred Frequency Percentage

brands
AVT Tea 43 43%
Three Roses 4 4%
Kannan Devan 38 38%
Tata tea 3 3%
Red label 12 12%
Total 100 100%
Figure 4.3: Most purchased Tea brands

50
45
40
35
30
25
20
15
10
5
0
AVT Tea 3Roses Kannan Devan Tata tea Red label
Interpretations
The survey indicates that, the most preferred Tea brands are AVT Tea and Kannan
Devan Tea of 43% and 38% of customers respectively. This shows the competition
between AVT Tea and Kannan Devan. Furthermore, Red Label has 12 per cent of
customers. However the other brands have very few customers for brand preference.

49
4.4 Benefits of AVT Tea product over competitors
Table 4.4: Benefits of AVT Tea Product over competitors
Benefits of AVT Tea Product Frequency Percentage
Perceived Quality 39 39%
Availability 13 13%
Affordable Price 33 33%
Product attributes 5 5%
Acceptability 10 10%
Total 100 100%
Figure 4.4: Benefits of AVT Tea Product over competitors

45
40
35 39%
30
33%
25
20
15
10 13%
10%
5
5%
0
Perceived Quality Availability Affordable Price Product Acceptability
attributes

Interpretations
The bar chart indicates that, the most popular benefit of AVT Tea is the perceived
quality (39%) and the second most popular benefit is the affordable price (33%)
over its competitors. There are few respondents who caste the other benefits such as
the availability (13%), acceptability (10%) and product attributes (5%) of AVT Tea.

50
4.5 Promotional activities of AVT Tea on customers’ purchase

decision
Table 4.5: Promotional activities of AVT Tea
No Promotional activities Frequency Percentage
1 Advertisements 25 25%
2 Gift coupons 31 31%
3 Discount Offers 31 31%
4 Festival Offers 13 13%
5 Other promotions 0 0%
Total 100 100%
Figure 4.5: Promotional activities of AVT Tea

35
31% 31%
30
25%
25
20
15 13%
10
5
0%
0
Advertisements Gift coupons Discount Offers Festival Offers Other
promotions

Interpretations
The graph demonstrates that, majority of the AVT Tea customers are equally
influenced by discount offers (31%) and gift coupons (31%) on their purchase
decisions. A large number of respondents think that 25 per cent of advertisements have
an impact on their purchase behaviour. A small percentage of festival offers also have
an effect on customers whereas other promotions have no influence on the purchase
desire.

51
4.6 Showing the promoters of purchase behaviour of AVT Tea over

other Brands
Table 4.6: Promoters of AVT Product
promoters of AVT Product Frequency Percentage
Self 43 43%
Friends 4 4%
Retailers 0 0%
Family 13 13%
Media 40 40%
Total 100 100%
Figure 4.6: Promoters of AVT Product

50
45
40
35
30
25
20
15
10
5
0
self friends retailers family media

Interpretations
The bar chart shows that, 43 out of 100 respondents are „self‟ motivated and 40
per cent are influenced by media advertisements of AVT Tea. Family has a
significant role of about 13% of promoters while friends inspired only four
percentages for the purchase of AVT products. An important finding from the
survey is that retailers have no role in purchase intentions of the respondents.

52
4.7 .1 Showing the rating of Perceived Quality of AVT Tea

products.
Table 4.7.1: The perceived Quality rating of AVT Tea products
Satisfaction Level Frequency Percentage
Very high 55 55%
High 32 32%
Medium 13 13%
Low 0 0%
Very low 0 0%
Total 100 100
Figure 4.7.1: The perceived Quality rating of AVT Tea

products
60
50
40
30
20
10
0
Very high High Medium Low Very low

Interpretations
The line graph illustrates that, 55 per cent of respondents have been perceived as
„very high‟ quality. It is followed by 32% of „high‟ quality level of AVT Tea, while
percentage of 13 customers says that perceived quality is „neutral‟. The „low‟ and „very
low‟ customers regarding the Quality of AVT account for zero.

53
4.7.2 Demonstrating the quantity of purchase level of homemakers

per month
Table 4.7.2: Quantity of purchase level per month
Quantity of purchase level Frequency Percentage
Very high 4 4%
High 32 32%
Medium 56 56%
Low 8 8%
Very low 0 0%
Total 100 100
Figure 4.7.2: Quantity of purchase level per month
8% 4%
very high
32%
high
medium
56%
Low
very low

Interpretations
The pie diagram depicts that, AVT Tea has majority of 56% of medium level
quantity purchase while 32 per cent of high level quantity purchase by customers
during a month. The rest of the quantity purchase levels by customers per month is 4%,
8% and 0% respectively.

54
4.8 Showing the scope of Future purchase of AVT Tea Products
Table 4.8: Future purchase of AVT Tea Products
Frequency Percentage
Definitely will 64 64%

Probably 26 26%
Probably not 4 4%
Might or might not 4 4%
never 2 2%
Total 100 100%
Figure 4.8: Future purchase of AVT Tea Products
4% 2%
4%
26%
64%
Interpretations
The pie chart shows that, the highest percentage (64%) of respondents are willing
to purchase the AVT Tea in future whereas 26 per cent of respondents have
probability on their purchase desire. There are only 2% of respondents who were
„not willing‟ to purchase AVT products in future.

55
4.9 Showing familiar factors of AVT Tea among homemakers
Table 4.9: Familiar factor of AVT Tea
Familiar Factors Frequency Percentage

of AVT tea
Brand associations 26 26%
Brand awareness 21 21%
Brand loyalty 23 23%
Brand quality 27 27%
Brand personality 3 3%
Total 100 100%
Figure 4.9 : Familiar factor of AVT Tea
30
25
20
15
10
0
Brand Brand Brand loyalty Brand quality Brand
associations awareness personality

Interpretations
The graph indicates that, majority of homemakers are familiar with brand quality
(27%) and brand associations (26%) of AVT Tea. They are followed by 23 per cent
of brand loyalty and 21 per cent of brand awareness. Brand personality has only five
per cent on familiarizing the AVT Tea products among customers.

56
4.10 Showing rating of the brand associations’ which have influence

on brand preference among homemakers
4.10.1 Showing the Rating of brand association AV Thomas group

Table 4.10.1: Rating of AV Thomas group
Rating of AV Frequency Percentage

Thomas group
Excellent 76 76%
Very good 13 13%
Good 11 11%
Average 0 0
Poor 0 0
Total 100 100%
Figure 4.10.1 : Rating of AV Thomas group

80
70
60
50
40
30
20
10
0
Excellent Very good Good Average Poor

Interpretations
The graph shows that, 76 out of 100 respondents are rated the brand association
as „AV Thomas‟ has excellent influence, while 13 percent ranked it as „very good‟
and remaining 10 customers are caste as „good‟.

57
4.10.2 Showing the Rating of the brand association: Strongest Tea,

consistently (Tagline of AVT Tea).
Table 4.10.2: Rating of the tagline: Strongest Tea, consistently
Rating of Tagline Frequency Percentage
Excellent 40 40%
Very good 25 25%
Good 28 28%
Average 5 5%
Poor 2 2%
Total 100 100%
Figure 4.10.2 : Rating of the tagline: Strongest

45 Tea, consistently
40
35
30
25
20
15
10
5
0
Interpretations
The bar chart represents, the majority of respondents who voted the tagline as
„excellent‟ and 25% and 28% of respondents who believe that tagline has been
influenced as „very good’ and „good‟ respectively. There are hardly 5% and 2% of
customers having „average‟ and „poor‟ influence about the tagline.

58
4.10.3 Showing rating of the brand association: South Indian Tea

giants.
Table 4.10.3: Rating of the brand association: South Indian Tea giants
Rating of South Frequency Percentage

Indian Tea giants
Excellent 11 11%
Very good 9 9%
Good 16 16%
Average 51 51%
Poor 13 13%
Total 100 100%
Figure 4.10.3 : Rating of the brand association:

60 South Indian Tea giants
50
40
30
20
10
0

Interpretations
The chart represents that, most of the homemakers have „average‟ rating of 51% and
the second most percentage accounts for „good‟ (16%). It is then followed by 11% of
„excellent‟ rating for the brand association „South Indian giants‟. „Very good‟ has only
9 per cent of respondents whereas „poor‟ rating has 13% of respondents.

59
4.10.4 Showing rating of the brand association: ‘Discount coupons’.
Table 4.10.4: Rating of the brand association: Discount coupons
Rating of Discount Frequency Percentage

coupons
Excellent 72 72%
Very good 11 11%
Good 9 9%
Average 8 8%
Poor 0 0
Total 100 100%

Discount coupons
80
70
60
50
40
30
20
10
0

Interpretations
According to the bar diagram 72 out of 100 respondents say that, discount coupons
have „excellent‟ influence on their purchase, while 11 per cent represents for „very good‟.
There are almost similar rating for „good‟ (9%) and „average‟ (8%). In addition to that,
none of the homemakers voted „poor‟ rating for this brand association of AVT Tea.

60
4.10.5 Showing rating of the brand association: ‘Availability’.
Table 4.10.5: Rating of the brand association: Availability
Rating of availability Frequency Percentage
Excellent 12 12%
Very good 15 15%
Good 23 23%
Average 50 50%
Poor 0 0
Total 100 100%

Availability
60
50
40
30
20
10
0

Interpretations
The bar chart shows that, half of the sample is rated as average and 23% of
respondents were representing „good‟ for the availability of AVT Tea. The other
ratings were given as follows, very good (15%) and excellent (12%) while poor has
zero respondents.

61
4.10.6 Showing rating of the brand association: ‘Acceptability’.
Table 4.10.6: Rating of the brand association: Acceptability
Rating of Frequency Percentage

Acceptability
Excellent 41 41%
Very good 25 25%
Good 27 27%
Average 5 5%
Poor 2 2%
Total 100 100%
Figure 4.11.6: Rating of the brand association:

Acceptability
45
40
35
30
25
20
15
10
5
0

Interpretations
The bar graph represents that, 41 per cent of customers rated as excellent for the
acceptability (brand association) of AVT Tea while it has 27% and 25% of rating for
both very good and good respectively. Hardly 5% for average and 2% for poor
rating have given to the acceptability of AVT tea.

62
4.10.7 Showing rating of the brand association: ‘Affordability’.
Table 4.10.7: Rating of the brand association: Affordability
Rating of Frequency Percentage

Affordability
Excellent 65 65%
Very good 27 27%
Good 3 3%
Average 5 5%
Poor 0 0
Total 100 100
Figure 4.11.7: Rating of the brand association:

Affordability
70
60
50
40
30
20
10
0

Interpretations
According to the bar chart, a highest percentage (65%) has been rated as „excellent‟
and 27% of respondents were representing ‘very good’ for the affordability of AVT
Tea. The ‘average’ and ‘good’ rating have a least percentages of 5 and 3 respectively;
while and „poor’ rating has zero respondents.

63
4.11 Showing the effects of brand associations of AVT Tea on

customer attractiveness
Table 4.11: brand associations of AVT tea
Brand association Frequency Percentage

of AVT tea
Product benefits 4 4%
Perceived Quality 45 45%
Product promotions 40 40%
Product attributes 3 3%
Other factors 8 8%
Total 100 100%
Figure 4.11 : brand association factors of AVT tea
45%
40%
8%
4% 3%
Product benefits Perceived Product Product Other factors

Quality promotions attributes

Interpretations
The graph shows that, 100 out of 45 respondents are influenced by perceived
quality while 40 respondents are attracted by the product promotions of AVT Tea.
The other factors of AVT Tea have negligible role in attracting customers.

64
4.12 Ranking of AVT Tea products based on the parameters
Table 4.12: Ranking of AVT Tea products
Ranking of AVT Frequency Percentage

Tea products
Expertise 21 21%
Trust worthiness 30 30%
Quality 33 33%
Liability 0 0
None of these 16 16%
Total 100 100%
Figure 4.12: Ranking of AVT Tea products
35
30
25
20
15
10
5
0
Expertise
Trust
quality
worthiness Liability
None of
these

Interpretations
The graph represents that, 33 per cent of respondents ranked the quality as major
parameter for brand preference while 30% consumers believe that AVT products are
trust worthiness. The other parameters expertise and none of these accounts for 21%
and 16% respectively whereas Liability has no respondents at all.

65
4.13 Showing the inspired attributes of the AVT Tea products

Table 4.13: Attributes of AVT Product
Attributes of AVT Frequency Percentage

Product
Quality 40 40%
Quantity 3 3%
Promotions 19 19%
Price 35 35%
Packaging 3 3%
Total 100 100%
Figure 4.13 : Attributes of AVT Product

45
40
35
30
25
20
15
10
5
0
Quality Quantity Promotions Price Packaging

Interpretations
The bar graph demonstrates that, quality (40%) and price (35%) are the important
attributes of the AVT Tea. Promotional activities inspired 19% of respondents while
quantity and packaging of AVT Tea have only 3 per cent of inspired customers.

66
4.14 Demonstrating the brand quality uniqueness of AVT
Table 4.14: Brand Quality uniqueness of AVT
Certainly 60 60
Probably 17 17
Probably not 2 2
Might or might not 23 23
never 0 0
Total 100 100
Figure 4.14: Brand Quality uniqueness of AVT

70
60
60
50
40
30 23
20 17
10
2 0
0
Certainly Probably Probably not Might or might never
not

Interpretations
The chart shows that, a highest percentage of 60 respondents declare that AVT
Tea „certainly‟ has brand quality uniqueness whereas, 23 per cent think that it is
„might or might not‟. However 17 out of 100 homemakers say that, there is
„probably‟ in this case, while „probably not‟ represents only 2%. No one believes
that AVT Tea „never‟ has brand quality uniqueness.

67
4.15 Feeling about the Quality guarantee provided by AVT Tea

Figure 4.15: Quality guarantee rating by purchasers
Excellent 30 30%
Good 49 49%
Average 15 15%
poor 6 6%
Very poor 0 0
Total 100 100%

Figure 4.15: Quality guarantee rating by purchasers

Excellent Good Average Poor very poor
6%
15%
30%
49%

Interpretations
The pie chart represents that, a highest percentage of 49 respondents rated the
„good‟ quality guarantee, whereas 30 per cent says that AVT has „excellent‟ quality
guarantee. The 15% respondents rated the quality programs are „average‟ and 6% of
respondents says that it has „poor‟ quality guarantee. There are no customers who rated
AVT Tea as „very poor‟ for their quality guarantee.

68
4.16 Showing the willingness to pay a premium for the AVT brand
products
Table 4.16: Willingness to pay for Premium of AVT Products
Yes 70 70%
No 30 30%
Total 100 100
Figure 4.16: Willingness to pay for Premium of AVT

Products
NO
30%
YES
70%
Interpretations
The doughnut chart demonstrates that, 70% respondents are willing to pay price
for premium, whereas others are not ready to buy the premium products of the AVT
Tea.

69
4.17 Showing the changes needed for AVT Product in future
Table 4.17: Changes Needed for AVT Product
Changes Needed for AVT Product Frequency Percentage
Improved Quality 7 7%
More Quantity 14 14%
More promotions 39 39%
Less Price 35 35%
Better Packaging 5 5%
Total 100 100
Figure 4.17: Changes Needed for AVT Product

45
40
35
30
25
20
15
10
5
0
Improved More Quantity More Less Price Better Packaging
Quality promotions

Interpretations
The bar graph demonstrates that, the majority of the homemakers needed changes
such as, more promotions (39%) and less price (35%). 14 per cent of the respondents
wanted more quantity of AVT Tea while changes of improved quality and better
packaging account for 7% and 5% respectively.

70
4.18 Showing consumers’ willingness to purchase the brand

extensions of AVT
Table 4.18: Consumer willingness to purchase the Brand Extensions of AVT
Yes 55 55%
No 17 17%
can‟t say 28 28%
Total 100 100%
Figure 4.18: Consumer willingness to purchase the Brand

Extensions of AVT
17%
28% 55%
YES NO can’t say

Interpretations
According to the pie chart 55% homemakers are „would like to purchase‟ the brand
extensions, while 17 percent of respondents represent their unwillingness. The
remaining 28% of homemakers „couldn‟t say‟ their willingness to purchase the
products of the AVT Tea.

71
4.19 Showing the recommendations of AVT Tea products to others
Table 4.19: Recommendation of the AVT Branded Tea products to others
Yes 59 59%
No 41 41%
Total 100 100%
Figure 4.19: Recommendation of the AVT Branded Tea

products to others
70
60
50
40
30
20
10
0
YES NO
Recommended 59 41
Interpretations
The bar chart shows that, 59% of respondents would like to recommend the
products, while 41% of respondents are not willing to recommend AVT Tea products
to others.

72
4.20 Showing the current view on AVT Tea product

Table 4.20: Current view of AVT Tea product
Branded product 25 25%
Quality product 20 20%
Affordable product 55 55%
Available product 10 10%
other benefits 3 3%
Total 100 100%
Figure 4.20: Current view of AVT Tea product
60
50
40
30
20
10
0
Branded
Quality
product Affordable
product Available
product other
product
benefits

Interpretations
The graph shows that, majority of customers (55%) says that AVT Tea product has
affordable price and 25 respondents like the branded products of AVT Tea while 20 per
cent of respondents have perceived the quality. Since the availability of the product has
10% of respondents, the other benefits of the products have least percentage of 3%.

73
4.21.1 Showing overall effects of the brand associations of AVT Tea

among homemakers.
Table 4.21.1: Overall effects of the brand associations of AVT Tea
Yes 66 66%
No 34 34%
Total 100 100%
Figure 4.21.1: Overall effects of the brand associations of

AVT Tea
70
60
50
Percentage
40
30
20
10
0
Yes No
Interpretations
According to the bar chart 66% of respondents have fair knowledge about the
brand associations of AVT Tea, while 34% of respondents are still unacquainted with
the AVT Tea brand associations.

74
4.21.2 Showing the overall influence of brand associations of AVT Tea

on customer’s brand preference
Table 4.21.2: The overall influence of brand associations of AVT on customers‟

brand preference
Yes 54 54%
No 46 46%
Total 100 100%
Figure 4.21.2: The overall influence of brand associations

of AVT on customers’ brand preference
56
54
52
50
48
46
44
42
Yes No
Interpretations
According to the graph, the brand associations of AVT Tea which have influenced on
respondents‟ brand preference accounts for 54%. However, the 46 per cent of
homemakers have no influence for AVT Tea brand associations on their brand
preference.

75
4.22 Showing the rating of AVT Tea products in terms of overall

excellence
Table 4.22: Consumer overall Rating of AVT Tea
AVT Product Rating Frequency Percentage
5 Stars 18 18%
4 Stars 65 65%
3 Stars 17 17%
2 Stars 0 0
1 Star 0 0
Total 100 100%
Figure 4.22: Consumer overall Rating of AVT Tea

70
60
50
40
30
20
10
0
5 Stars 4 Stars 3 Stars 2 Stars 1 Star

Interpretations
The chart shows that, 65 out of 100 respondents rated „four stars‟ to the overall
superiority of AVT Tea. In addition to that another 18 homemakers ranked „five stars‟
while 17 per cent accounts for „three stars‟. The homemakers didn‟t rate two stars and
„single star‟ which indicate that, AVT has moderate level of excellence in their brand
category.

76
CHI-SQUARE TEST FOR DATA ANALYSIS
4.23 Showing chi-square test for testing association between brand

associations and brand preference.
Ho: There is no relationship between brand associations and brand preference

among homemakers
Ha: There is a relationship between brand associations and brand preference among
homemakers.
Table 4.23.1: Showing 2X2 contingency table of brand associations and brand preference
among homemakers.
Brand associations
2X2 contingency table
Row Totals
Effected Not effected
Influenced 54
42 12
Brand
preference
Not influenced 46
24 22
Column Totals 66 34 100 (Grand

Total)
Chi-square (χ2 ) equation is expressed as,
2 (𝐎−𝐄)𝟐
χ = 𝐄
Where, O = Observations
𝐑ow Totals ×𝐂olumn Totals

E = Expected Frequency =
Grand Total

77
Table 4.23.2: Showing chi-square test for testing relationship between brand associations
and brand preference.
Observations Expected Frequency (O-E)2 (𝐎 − 𝐄)𝟐

(E) 𝐄
(O)
42 35.64 40.44 1.13
24 30.36 40.44 1.33
12 18.36 40.44 2.2
22 15.64 40.44 2.58
100 7.742
Critical region = (r – 1) (c – 1) R= number of row

C= number of column
Degrees of freedom = (2– 1) (2 – 1) = 1
χ2 Table value at Level of significance 5% = 3.841
Chi-square 7.742
Dof (1,0.05) 3.841
Interpretation
Here calculated chi-square value is greater than the table value. Hence neglect Ho.
That is, there is a relationship between brand associations and brand preference among
homemakers.

78
CORRELATION TEST FOR DATA ANALYSIS

4.24 Showing correlation test for testing the relationship between
perceived quality of AVT Tea products and quantity of purchase
among homemakers.
Ho: There is no relationship between perceived quality of AVT Tea products and
Ha: There is a relationship between perceived quality of AVT Tea products and
Let X be the perceived quality of AVT Tea products.

Let Y be the quantity of purchase among home makers.
Table 4.24: Testing the relationship between perceived quality of AVT Tea products
and quantity of purchase among homemakers.
Respondents (n) ∑X ∑Y ∑XY ∑X2 ∑Y2
441 357 1616 1995 1323

100
(Source: MS Excel data analysis)
Coefficient of correlation (r) equation is expressed as,
𝑛 𝑋𝑌−( 𝑋 𝑌)
r= 2 2
𝑛 𝑋 2 −( 𝑋) 𝑛 𝑌 2 −( 𝑌)
Substituting the values in the above equation, we get r = 0.8437.
Interpretation
Here the correlation coefficient indicates a highly positive correlation of 0.8437;

hence perceived quality and quantity of purchase among homemakers are associated
with each other. That is, increase in perceived quality of AVT is associated with an
increase in the quantity of purchase among homemakers.

79
4.25 Showing correlation test for testing the relationship between

overall excellence of AVT Tea products and brand loyalty of AVT
Tea among home makers.
Ho: There is no relationship between overall excellence of AVT Tea products and
Ha: There is a relationship between overall excellence of AVT Tea products and brand
loyalty of AVT Tea among home makers.
Let X be the overall excellence of AVT Tea products.

Let Y be the brand loyalty of AVT Tea among home makers.
Table 4.25: Showing correlation test for testing the relationship between overall
excellence of AVT Tea products and brand loyalty
Respondents ( n ) ∑X ∑Y ∑XY ∑X2 ∑Y2
100 400 434 1786 1634 1990
(Source: MS Excel data analysis)
Coefficient of correlation (r) equation is expressed as,
𝑛 𝑋𝑌−( 𝑋 𝑌)
r= 2 2
𝑛 𝑋 2 −( 𝑋) 𝑛 𝑌 2 −( 𝑌)
Substituting the values of ∑X, ∑Y, ∑XY, ∑X2, and ∑Y2 in the above equation, we get
r = 0.8311.
Interpretation
Here the correlation coefficient indicates a highly positive correlation of 0.8311,
hence overall excellence and brand loyalty of AVT Tea are associated with each other.
That is, increase in overall excellence of AVT Tea products is associated with an
increase in the brand loyalty of AVT Tea.

80
5.1 FINDINGS
1. Customers of AVT Natural Products are highly loyal to the brand, which show its
ability to meet customer‟s needs. Most of the customers of AVT tea have an
experience with the company for more than 4 years (Table 4.1 and figure 4.1).
2. The most popular brand of AVT Tea is AVT premium Tea which has the highest
percentage of customers as compared to other brands of AVT Tea (Table 4.2 and
figure 4.2).
3. The most popular Tea brands are AVT Tea and Kannan devan Tea; they have 43%
and 38% of customers respectively. This shows the competition between AVT Tea
and Kannan Devan (Table 4.3 and figure 4.3).
4. The most popular benefit of AVT Tea is their perceived quality (39%) over its
competitors (Table 4.4 and figure 4.4).
5. The majority of the AVT Tea customers are equally influenced by discount offers
(31%) and gift coupons (31%) (Table 4.5 and figure 4.5).
6. According to the survey, 43 out of 100 respondents are „self‟ motivated and 40%
are promoted by media advertisements of AVT Tea as compared to its rival brands
(Table 4.6 and figure 4.6).
7. 55 per cent of respondents are „highly satisfied’ on the perceived quality of AVT
Tea over their rivals while „less satisfied’ and „not satisfied’ account for zero
(Table 4.7.1 and figure 4.7.1). Majority of the customers purchase „medium
quantity’ of AVT Tea every month (Table 4.7.2 and figure 4.7.2).
8. A highest percentage (64%) of respondents are would like to purchase the AVT
Tea in future (Table 4.8 and figure 4.8).

81
9. Majority of homemakers are familiar with brand quality (27%) and brand
associations (26%) of AVT Tea (Table 4.9 and figure 4.9).
10. AVT Tea brand associations like AVT group, AVT tagline, discount coupon,
acceptability and affordability have „excellent‟ influence on the homemakers,
while South Indian giants and availability are rated as „average‟.
11. Perceived quality has the major influence on the customer attractiveness to AVT
Tea products (Table 4.11 and figure 4.11).
12. 33 per cent of respondents ranked the quality as major parameter for their brand
preference (Table 4.12 and figure 4.12).
13. Quality has inspired the brand preference and it becomes an important attribute of
the AVT Tea (Table 4.13 and figure 4.13).
14. A highest percentage of 60 respondents declare that AVT Tea „certainly‟ has brand
quality uniqueness (Table 4.14 and figure 4.14).
15. Almost half percentages of respondents have felt that AVT has ‘good’ quality
guarantee which shows the acceptance of the product within the customer group of
AVT NPL (Table 4.15 and figure 4.15).
16. A highest percentage of 70 respondents are willing to pay price for premium,
whereas others are not ready to buy the premium products of AVT Tea (Table 4.16
and figure 4.16).
17. Majority of homemakers needed changes such as, more promotions (39%) and less
price (35%) (Table 4.17 and figure 4.17).
18. 55% homemakers are would like to purchase the brand extensions of AVT Tea

82
19. When awareness is generated in the way of questionnaires, 59% of respondents

would like to recommend the products, while 41% of respondents would not like to
recommend AVT Tea products to others (Table 4.19 and figure 4.19).
20. Majority of customers (55%) say that AVT Tea has „affordable price’ in current
Tea market (Table 4.20 and figure 4.20).
21. The feedback about the Survey indicates that 66% of respondents have affected by
the brand associations of AVT Tea (Table 4.21 and figure 4.21).
22. The brand associations of AVT Tea which have influenced on respondents‟ brand
preference accounts for 54% (Table 4.22 and figure 4.22).
23. 65 per cent of respondents rated „four stars’ to the overall superiority of AVT Tea
24. The brand associations of AVT Tea turn to be a right initiative of the company to
meet that part of the brand preference among customers. That is there is a
relationship between brand associations and brand preference among customers of
AVT Tea. (Table 4.24).
25. The perceived quality of AVT Tea products and quantity of purchase are
associated with each other. That is, increase in perceived quality of AVT is
associated with an increase in the quantity purchase among homemakers (Table
4.25).
26. The correlation coefficient indicates a highly positive correlation hence overall
excellence and brand loyalty of AVT Tea are associated with each other. That is,
increase in overall excellence of AVT Tea products is related with an increase in
the brand loyalty of AVT Tea (Table 4.26).

83
5.2. SUGGESSTIONS
 Advertisement is an important promotional activity that can influence on the

homemakers. Nowadays AVT is not much concentrating on advertisements, so
much more efforts should be made to advertise the product.
 Since AVT Tea has majority of customers, the brand has tight competition with
Kannan devan Tea brand. Therefore, it is essential for the management to take
effective strategies to increase the brand preference in future.
 It is very clear that AVT premium Tea has the highest percentage of customers as
compared to other brands of AVT Tea. So marketing promotions should be
implemented accordingly to strengthen other Tea brands of the company.
 AVT tea has failed to execute the marketing promotions of the sub brand „AVT
Manalaroo‟. Hence awareness and advertisements should reach to the targeted
customers in order to increase the sale of the brand
 The company management should have to provide better incentives and trainings
to the retailers because retailers have no influence on the purchase behavior of
customers.
 Promotional activities of AVT Tea are comparatively less. Other competitors are
trying to incorporate new ideas to withstand in the industry, so it has become a
criterion to focus on promotional activities.
 Homemakers should get awareness regarding the new technologies and

innovations provided by the AVT NPL such as premium bags, wending machines
etc.

84
5.3. CONCLUSION
AVT Natural Products ltd. is a market leader in the South Indian black tea
industry, which having its major share in the international and domestic market. This
project helps to find out the influence of AVT brand associations and how much the
consumers are satisfied with their brand preference of AVT Tea. It finds the
acceptance of the tea product in the existing group of customers and its reach into
the prospective group of homemakers.
AVT is having high brand preference among homemakers. Most of the

customers are interested in using branded tea. Homemakers brand preference
represents a fundamental step in understanding the brand associations. Brand
associations have a significant impact on brand preference. House engineers are
aware of the AVT tea because of the brand associations such as AV Thomas,
perceived quality, affordability, discount coupons and the tagline: Strongest Tea,
consistently. They have created brand preference in the minds of the homemakers.
According to the survey, the most popular Tea brand is AVT Tea and it is followed
by Kannan devan. This shows the increasing competition between AVT Tea and
Kannan Devan. However, the most popular brand of AVT Tea is AVT premium Tea
which has the highest percentage of customers as compared to other brands of AVT
Tea.
Promotional activities of AVT Tea are comparatively less. Other competitors

are trying to incorporate new ideas to withstand in the industry, so it has become a
criterion to focus on promotional activities. The perceived quality of AVT Tea
products and quantity of purchase are associated with each other. Similarly, overall
excellence and brand loyalty of AVT Tea are also associated with each other. The
brand associations of AVT Tea turn to be a right initiative of the company to meet
that part of the brand preference among customers. The research concludes that
there is an association between brand associations and brand preference among
customers of AVT Tea.

85
BIBLIOGRAPHY
1. Aaker, David A (1991) “Managing Brand Equity: Capitalizing On the Value of

Brand Name”, The Free Press: New York.
2. Abedin, Z. (1996), "A Hand Book of Research for the Fellows of M. Phil and Ph.
D. Programmes, " Book Syndicate, Dhaka.
3. Albert M. Muniz Jr. & Lawrence O. Hamer (2001), "Us Versus Them;
Oppositional Brand Loyalty and the Cola Wars", Advances in Consumer Research,
Vol. 28, pp.355-361.
4. Baker, W., J. W. Hutchinson, D. Moore and P. Nedungadi (1986), "Brand

familiarity and Advertising: Effects on the Evoked set and Brand preferences,"
Advance in Consumer Research ed. R.J. Lutz. Association for consumer Research,
Provo. VT.
5. Barringer, Bruce, S. Thomas Foster, Jr., and Granger Macy (1999), “The Role of
Quality in Determining Export Success,” Quality Management Journal, 6,No. 4,
pp., 55-70.
6. Bearden, W.O. and Etzel, M.J. (1982), “Reference group influence on product and
brand purchase decisions”, Journal of Consumer Research, Vol. 9, September,
pp.183-94.
7. Keller, Kevin Lane (1993) “Conceptualizing, Measuring and Managing Customer-

Based Brand Equity”, Journal of Marketing, Vol. 57, pp.1-22
8. Meyers-Levy, J. (1989), “The influence of a brand name‟s association set size and
word frequency on brand memory”, Journal of Consumer Research 16, pp. 197–
207.
WIBLIOGRAPHY
 www.avtnatural.com
 http://en.wikipedia.org/wiki/buyer_decision_processes
 www.techneau.org/fileadmin/files/publication/publication/.../D6.2.1.pdf

86

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A study on the effects of brand associations of AVT Tea among homemakers

The research is conducted on the topic “A STUDY ON THE EFFECTS OF

Jai Bharath school of management studies

1.1 STATEMENT OF THE PROBLEM

The purpose of the research reported here was to test empirically a

Jai Bharath school of management studies

Framework of the study

VARIABLES: A variable is a measurable characteristic that varies. It may

The dependent variable is the variable to be explained (the „effect”). For

Fig 1.1: Framework of the study

 Taste and preferences of the home

(Cause variable) (Effect variable)

(Source: primary data)

Jai Bharath school of management studies

Moderator variables: affect the relationship between the independent and

Jai Bharath school of management studies

1.2 OBJECTIVES OF THE STUDY

Primary objective: To study the relationship between the influence of brand

1.3 SIGNIFICANCE OF THE STUDY

AVT Natural Products has an inevitable part of business & management

 To study the effects of brand associations of AVT Tea.

1.4 TESTING OF HYPOTHESIS:

1) Ho: There is no relationship between brand associations and brand preference

Jai Bharath school of management studies

1.5 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may

1.5.1 Data Collection

Jai Bharath school of management studies

1.5.2 RESEARCH DESIGN

1.5.3 SAMPLING DESIGN

1.5.4 Tool for Analysis

 Simple Percentage Analysis

1.5.5 Period Of Study

Jai Bharath school of management studies

1.6 LIMITATION OF THE STUDY

 Cannot ensure the accuracy and reliability of data.

1.7 SCOPE FOR FUTURE STUDY

The study intended to attain a firsthand experience of the overall running of an

Jai Bharath school of management studies

1.8 CHAPTER SCHEME

Chapter 2: Theoretical background and Literature Review

Chapter 3: Industry Profile

Chapter 4: Data Analysis and Interpretation

It contains research methodology which includes research design, data collection,

Chapter 5: Findings, Suggestions and Conclusion

Jai Bharath school of management studies

2.1 LITERATURE REVIEW

Literature review includes the theoretical and methodological contribution to a

A literature review is a written document that presents a logically argued case

According to Aaker (1991), brand associations are the category of a brand‟s

Consumers use brand associations to help process, organize, and retrieve

Jai Bharath school of management studies

Aaker (1991) defines brand associations as anything linked in memory to a

We selected these three constructs because they:

2. They have established, reliable, published measures in the literature; and

3. They are three dimensions discussed frequently in prior conceptual research

We conceptualize brand image (functional and symbolic perceptions), brand

 An Evaluation of Brands Image, Product Attributes and Perceived

Jai Bharath school of management studies

Brand preferences represent consumer dispositions to favour a particular brand

Here summarize major contributions of significant studies and articles to the

Accordingly, the aim of this study is to develop a model that provides an