Project Report - Manolina

Roll No.
- 20036761028
Project Report
On
General Perception Towards Packaged Cakes

Submitted in partial fulfillment of the requirement of the degree of
Master of Operational Research
Undertaken at
Aviyan Food Products

Anantha Sree Building, 311 – A/38 TMC,
Thamarakulangara Road, Opp road of NSS High
School, Tripunithura, Ernakulam – 682301, Kerala
UNIVERSITY OF DELHI
DEPARTMENT OF OPERATIONAL RESEARCH
Submitted By
Manolina Chakraborty
Kirori Mal College
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Name of the Student: Manolina Chakraborty
Title of Project: General Perception towards Packaged Cakes
Date of Commencement of the Project: 1 April 2022
Date of Completion of the Project: 6 May 2022
Name and Address of the Organization: Aviyan Food Products

Anantha Sree Building, 311 – A/38 TMC,
Thamarakulangara Road, Opp road of NSS
High School, Tripunithura, Ernakulam –
682301, Kerala
Project Mentor: Ms. Anuradha Bhattarcharjee
Name of the Supervisors from the Faculty: Prof. (Dr.) Preeti Wanti Srivastava
Prof. (Dr.) Prakash C. Jha
Prof. (Dr.) Pankaj Gupta
Prof. (Dr.) K.K. Aggarwal
Prof. (Dr.) Anu Gupta Aggarwal
Prof. (Dr). Ompal Singh
Dr. Mukesh Kumar Mehlawat
Dr. Aditi Khanna
Dr. Vandana Khaitan
Dr. Adarsh Anand
Dr. Kaushal Kumar
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CERTIFICATE
This is to certify that this project entitled “General Perception towards Packaged Cakes”
submitted in partial fulfilment of the degree of Master of Operational Research done by Ms.
Manolina Chakraborty is an authentic work carried out by her at Aviyan Food Products under
my guidance. The matter embodied in this project report has not been submitted earlier for
award of any degree or diploma to the best of my knowledge and belief.
Department of Operational Research
University of Delhi
Delhi-110007
Prof. (Dr.) Preeti Wanti Srivastava

Head of Department
Department of Operational Research
Faculty of Mathematical Sciences
University of Delhi
Delhi – 110007
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ACKNOWLEDGEMENT
I would like to express my sincere thanks to Aviyan Food Products for providing me with the
opportunity to undertake this project. It is my pleasure to thank Ms. Anuradha Bhattacharjee
whom I owe a lot for giving me an opportunity to do my project in this organization.
I would also like to express my gratitude to Prof (Dr.) Preeti Wanti Srivastava (Head,
Department Of Operational Research, University Of Delhi) for providing me with an
opportunity to undertake this project. This project would not have been possible without the
able guidance and support of the faculty members of the department.
Finally, I would like to thank my family and my colleagues for all their time, support and
encouragement.
Kirori Mal College
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Table of Contents
1. INTRODUCTION TO OPERATIONAL RESEARCH................................................................. 8
1.1. Definitions of Operational Research............................................................................. 9
1.2. History of Operational Research................................................................................. 10
1.3. Methodology of Operational Research....................................................................... 12
1.4. Scope of Operational Research..................................................................................... 14
1.5. Characteristics of Operational Research Approach ................................................. 16
1.6. Limitations of Operational Research........................................................................... 17
1.7. Techniques of Operational Research........................................................................... 18
1.8. Operational Research in India...................................................................................... 23
2. THEORETICAL BACKGROUND............................................................................................... 25
2.1. Marketing Research ...................................................................................................... 25
2.2. Consumer Behaviour..................................................................................................... 29
2.3. Questionnaire Design.................................................................................................... 33
2.4. Sampling Design and Procedures............................................................................... 39
2.5. Factor Analysis .............................................................................................................. 44
3. INDUSTRY OVERVIEW .............................................................................................................. 50
3.1. Indian Packaged Cake Market .................................................................................... 51
4. COMPANY PROFILE ................................................................................................................... 52
5. RESEARCH DESIGN AND METHODS .................................................................................... 54
5.1. Research Problem .......................................................................................................... 54
5.2. Objective of The Study ................................................................................................. 54
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5.3. Scope of The Study........................................................................................................ 54
5.4. Research Methodology ................................................................................................. 55
6. ANALYSIS AND RESULTS.......................................................................................................... 57
6.1. Demographics Analysis ............................................................................................... 57
6.2. Consumer Purchase Behaviour.................................................................................... 61
6.3. Factor Analysis and Results......................................................................................... 72
7. S.W.O.T. ANALYSIS...................................................................................................................... 82
7.1. Swot Analysis for Aviyan Food Products……………….......................................... 86
8. QUESTIONNAIRE……………………………………………………………………………….88
9. LIMITATIONS OF THE STUDY………………………………….............................................. 94
10. REFERENCES............................................................................................................................... 95
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INTRODUCTION TO OPERATIONAL RESEARCH
Operational Research or Operations Research (OR) is a quantitative approach to decision

making. It is a discipline that deals with the application of advanced analytical methods to
help make better decisions. It is often considered to be a sub-field of mathematics. The terms
management science and decision science are sometimes used as synonyms.
Employing techniques from other mathematical sciences, such as mathematical modelling,

statistical analysis and mathematical optimization, operational research arrives at optimal
or near-optimal solutions to complex decision-making problems. Operational research (OR)
encompasses a wide range of problem-solving techniques and methods applied in the pursuit
of improved decision-making and efficiency, such as
• Simulation
• Mathematical optimization
• Queueing theory
• Markov decision processes
• Econometric methods
• Data envelopment analysis
• Neural networks
• Expert systems
• Decision analysis
• Analytic hierarchy process
Nearly all of these techniques involve the construction of mathematical models that attempt
to describe the system. Because of the computational and statistical nature of most of these
fields, OR also has strong ties to computer science and analytics.
The ‘research’ part of the name that operational research uses resembles the way research is
conducted in an established scientific (typically mathematical) model that attempts to abstract
the essence of the real problem. It is then hypothesized that this model is a sufficiently precise
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representation of the essential features of the situation that the conclusions (solution) obtained
from the model are also valid for the real problem. An additional characteristic is that O.R.
frequently attempts to find the best solution (optimal solution) for the problem under
consideration.
DEFINITIONS OF OPERATIONAL RESEARCH
Defining OR is a difficult task as its boundaries and content are not yet fixed. It can be
regarded as the use of mathematical and quantitative techniques to substantiate the decision
being taken. Further, it is multidisciplinary which takes tools from subjects like mathematics,
statistics, engineering, economics, psychology etc. and uses them to score the consequences of
possible alternative actions.
The activity “Operational Research” has become increasingly important in the fast-moving
technology and increasing complexities in business and industry. No science has ever been
born on a specific day. Though the roots of OR extend to even the early 1800s. Today, it has
become a professional discipline that deals with the application of scientific methods to
decision-making.
Salient aspects related to definition stressed by various experts on the subject are as follows:
(a) Pocock stresses that OR is an applied science; he states “OR is a scientific methodology -
analytical, experimental, quantitative — which by assessing the overall implication of
various alternative courses of action in a management system, provides an improved basis
for management decisions’’.
(b) Morse and Kimball have stressed the quantitative approach of OR and have described it
as “a scientific method of providing executive departments with a quantitative basis for
decisions regarding the operations under their control”.
(c) Miller and Starr see OR as applied decision theory. They state “OR is applied decision
theory. It uses any scientific, mathematical or logical means to attempt to cope with the
problems that confront the executive, when he tries to achieve a thorough - going
rationality in dealing with his decision problem”.
(d) Saaty considers OR as tool of improving the quality of answers to problems. He says, “OR
is the art of giving bad answers to problems which otherwise have worse answers”.
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(e) According to H.M. Wagner, “OR is a scientific approach to problems solving for executive
management.”
(f) H.A. Taha says, “OR is a scientific knowledge through interdisciplinary team effort for
the purpose of determining the best utilizations of limited resources.”
Some other definitions are as follows:
• Operational Research is the application of the methods of science to complex problems

in the direction and management of large systems of men, machines, materials and
money in industry, business, government and defence. The distinctive approach is to
develop a scientific model of the system incorporating measurements of factors such
as chance and risk, with which to predict and compare the outcomes of alternative
decisions, strategies or controls. The purpose is to help management in determining
its policy and actions scientifically.
• Operational Research is the systematic application of quantitative methods,
techniques and tools to the analysis of problems involving the operation of systems.
• Operational Research can be characterized as the application of scientific methods,
techniques and tools, to problems involving the operations of a system so as to provide
those in control of the operations with optimum solutions to the problems.
Operational Research is the professional discipline that deals with the application of
information technology for informed decision-making. It aims to provide a rational base
for decision making by seeking to understand and structure complex situations and to use
this understanding to predict system behavior and improve system performance. Much
of this work is done using analytical and numerical techniques to develop and manipulate
mathematical and computer models of organizational systems composed of people,
machines and procedures.
HISTORY OF OPERATIONAL RESEARCH
It is generally agreed that operational research came into existence as a discipline during
World War II when there was a critical need to manage scarce resources. However, a
particular model and technique of OR can be traced back as early as in World War I, when
Thomas Edison (1914- 15) made an effort to use a tactical game board for finding a solution
to minimize shipping losses from enemy submarines, instead of risking ships in actual
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war conditions. About the same time A.K. Erlang, a Danish engineer, carried out
experiments to study the fluctuations in demand for telephone facilities using automatic
dialing equipment. Such experiments were later on being used as the basis for the
development of the waiting- line theory.
Since the war involved strategic and tactical problems that were highly complicated, to
expect adequate solutions from individuals or specialists in a single discipline was
unrealistic. Therefore, groups of individuals who were collectively considered specialists
in mathematics, economics, statistics and probability theory, engineering, behavioral, and
physical science, were formed as special units within the armed forces, in order to deal
with strategic and tactical problems of various military operations.
Such groups were first formed by the British Air Force and later the American armed
forces formed similar groups. One of the groups in Britain came to be known as Blackett’s
Circus. This group, under the leadership of Prof. P M S Blackett was attached to the Radar
Operational Research unit and was assigned the problem of analyzing the coordination of
radar equipment at gun sites. The efforts of such groups, especially in the area of radar
detection are still considered vital for Britain in winning the air battle. Following the
success of this group similar mixed-team approach was also adopted in other allied
nations.
After the war was over, scientists who had been active in the military OR groups made
efforts to apply the operational research approach to civilian problems related to business,
industry, research development, etc. There are three important factors behind the rapid
development of using the operations research approach. These are
• The economic and industrial boom after World War II resulted in continuous
mechanization, automation and decentralization of operations and division of
management functions. This industrialization also resulted in complex managerial
problems, and therefore the application of operations research to managerial
decision making became popular.
• Many operational researchers continued their research after war. Consequently,
some important advancements were made in various operational research
techniques. In 1947, he developed the concept of linear programming, the solution
of which is found by a method known as simplex method. Besides linear
programming, many other techniques of OR, such as statistical quality control,
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dynamic programming, queuing theory and inventory theory were well
developed before the end of the 1950.
• Greater analytical power was made available by high-speed computers. The use of
computers made it possible to apply many OR techniques for practical decision
analysis.
Because of OR’s multi-disciplinary character and its application in varied fields, it has a bright
future. Some of the problems in the area of hospital management, energy conservation,
environmental pollution, etc. have been solved by OR specialists. This is an indication of the
fact that OR can also contribute towards the improvement of the social life and of areas of
global need.
METHODOLOGY OF OPERATIONAL RESEARCH
The systematic methodology developed for operational research study deals with problems
involving conflicting multiple objectives, policies and alternatives. OR in the final analysis is
a scientific methodology which is applied to the study of operations of large complex
organization and activities with a view to assessing the overall implications of various
alternative courses of action, thus providing an improved basis for managerial decision.
The OR approach to problem solving consists of the following six steps:
1. Formulation of the problem: It involves analysis of the physical system, setting up of

objectives, determination of restriction constraints against which decision should be
adopted, alternative courses of action and measurement of effectiveness.
2. Construction of a mathematical model: after formulation of the problem, the next step
is to express all the relevant variables of the problem into a mathematical model. A
generalized mathematical model might take the form:
E = f (xi, yj )
3. Deriving the solution from the model: once the mathematical model is formulated,
the next step is to determine the values of the decision variables that optimize the given
objective function. This deals with the mathematical calculations for obtaining the
solution to the model.
4. Validity of the model: the model should be validated to measure its accuracy. That is,
in the order for a model to be useful, the degree to which it actually represents the
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system or problem being modelled must be established. A model is valid or accurate
if
(a) it contains all the objectives, constraints and the decision variables relevant to
the problem.
(b) the objectives, constraints and the decision variables are all relevant to, or the
actually part of the problem
(c) the functional relationships are valid.
5. Establishing control over the solution: After testing the model and its solution, the
next step of the study is to establish control over the solution. By proper feedback of
the information on the variables which deviated significantly. As soon as one or more
of the control variables change significantly, the solution goes out of the control in such
a situation the model may accordingly be modified.
6. Implementation of the final results: Finally, the tested result of the model is
implemented to work. This would basically involve a careful explanation of the
solution to be adopted and its relationship with the operating realities. This stage of
O.R. investigation is executed primarily through the cooperation of both the O.R.
experts and those who are responsible for managing and operating the system.
SCIENTIFIC METHOD IN OPERATIONAL RESEARCH
The scientific method in operational research consists of the following three phases:
Judgment Phase: This phase includes:
a. Identification of the real-life problem.

b. Selection of an appropriate goal and the values of the various variables related to the
goals.
c. Appropriate scale of measurement
d. Formulation of an appropriate model of the problem, abstracting the essential
formulation so that the solution at the decision makers can be sought.
Research Phase: This phase is the largest and longest among the other two. However other
two also equally important as they provide basis for a scientific method. This phase utilizes:
a. Observations and data collection for better understanding of what the problem is.
b. Formulation of hypothesis and models.
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c. Observation and experiment to test the hypothesis on the basis of additional data.
d. Analysis of the available information and verification of the hypothesis using pre-
established measures of effectiveness.
e. Predictions of various results from the hypothesis.
f. Generalization of the results and consideration of alternative methods.
Action Phase: This phase consists of making recommendations for decision process by those
who first posed the problem for consideration, or by anyone in a position to make a decision
influencing the operation in which the problem occurred.
SCOPE OF OPERATIONAL RESEARCH
In recent years of organized development, OR has entered successfully in many different areas
of research. Some of the industrial /government / business problems which can be analyzed
by OR approach have been functional area wise as follows:
1. Finance, budgeting and investment

In these recent times of economic crisis, it has become very essential for every
government to do a careful planning for the economic progress of the country. OR
techniques can be productively applied:
a. Cash flow analysis, long range capital requirement, dividend policies,
investment portfolios.
b. Credit policies, replacement policies, credit risks and delinquent account
procedures.
c. To maximize the per capita income with least number of resources.
2. Marketing
With the assistance of OR techniques a marketing administrator can decide upon the
following:
a. How to allocate the products for sale, number of salesmen, frequency of calling
of accounts, etc. so that the total cost of transportation is minimum.
b. Product selection, timing, minimum per unit sale price and competitive
actions.
c. Advertising media with respect to time and cost.
d. Effectiveness of marketing research.
3. Physical distribution
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a. Location and size of warehouses, distribution centres, retail outlets, etc.
b. Distribution policy.
4. Agriculture
With the sudden increase of population and resulting shortage of food, every country
is facing the problem of:
a. Optimum allocation of land to a variety of crops as per the climatic conditions.
b. Distribution of water from numerous resources like canal for irrigation
purposes
Hence there is a requirement of determining best policies under the given restrictions.
Therefore, a good quantity of work can be done in this direction.
5. Purchasing, procurement and exploration

a. Rules for buying.
b. Determining the quantity and time to purchase.
c. Bidding policies and vendor analysis.
d. Equipment replacement policies.
6. Personnel Management
a. Forecasting the manpower requirement, recruitment policies and assignment
jobs.
b. Selection of suitable personnel with due consideration of age and skills, etc.
c. To find out the number of persons appointed in full time basis when the
workload is seasonal.
d. Determination of optimum number of persons for each centre.
7. Production Management
a. To calculate the number and size of the items to be produced.
b. Scheduling and sequencing the production run by proper allocation of
machines.
c. Calculating the optimum product mix.
d. Selection, location and design of the sites for the production plant.
8. In Industry
If the industry manager makes his policies simply on the basis of his past experience
and a day approaches when he gets retirement, then a serious loss is encounter ahead
of the industry. This heavy loss can be right away compensated through appointing a
young specialist of OR techniques in business management. Thus, OR is helpful for
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the industry director in deciding optimum distribution of several limited resources
like men, machines, material, etc to reach at the optimum decision.
9. Research and development
a. Reliability and evaluation of alternative designs.
b. Control and developed projects.
c. Co-ordination of multiple research projects.
d. Determination of time and cost requirements.
CHARACTERISTICS OF OPERATIONAL RESEARCH APPROACH
i. Operational Research makes use of experience Interdisciplinary Team Approach. It is

an important characteristic of operational research. According to this characteristic, no
single individual can be an expert on all aspects of a problem under consideration.
Thus, Operational Research utilizes the inter-disciplinary approach.
ii. Operational Research is a continuing process. It cannot stop on the application of the
model to one problem, for this may create new problems in other sectors and in the
implementation of the decision taken. Operational Research must also specify the
organizational changes required to implement decisions and control the result thereof.
Without this, the work of Operational Research practitioner is incomplete.
iii. Operational Research attempts to find the best or optimal solution to the problem
under consideration. To do this, it is necessary to define a measure of effectiveness that
takes into account the goals (objective) of the organization. In other words,
“Operational Research is the scientific study of large systems with a view to identify
problem areas and provide the managers with a quantitative basis for decisions which
will enhance their effectiveness in achieving the specified objectives.”
iv. Operational Research increases the creative ability of a decision-maker. Operational
Research is a decision-making science.
v. Operational Research gives only bad answers to the problem where only worse could
be given i.e.; it cannot give perfect answers to the problems. Thus, Operational
Research improves only the quality of the solution.
vi. Methodological Approach. Operational Research utilizes the scientific method.
Specifically, the process begins with the careful observation and formulation of the
problem. The next step is to construct a scientific (typically mathematical or
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simulation) model that attempts to abstract the essence of the real problem. From this
model, conclusions or solutions are obtained which are also valid for the real problem.
In an iterative fashion, the model is then verified through appropriate
experimentation.
vii. Operational Research replaces management by personality.
viii. Operational Research is for operations economy. Operational Research is a problem
solving and a decision-making science. Whenever we have conflicts, uncertainty and
complexity in a situation, Operational Research can help in the end to reduce costs and
improve profits and effect substantial “Operations Economy.”
LIMITATIONS OF OPERATIONAL RESEARCH
OR has certain limitations. These limitations are as follows:
i. Magnitude of computation: OR tries to find out the optimal solution taking all the
factors into account. In the modern society, these factors are numerous and expressing
them in quantity and establishing relationship among these, requires huge
calculations. All these calculations cannot be handled manually and require electronic
computers which bear a very heavy cost. Thus, the use of OR is limited to only very
large organizations.
ii. Absence of quantification: OR provides solution only when all the elements related
to a problem can be quantified. The tangible factors such as product, price, etc., can be
expressed in terms of quantity, but intangible factors such as human relations etc.
cannot be quantified. Thus, these intangible elements of the problem are excluded
from the study, though these might be equal or more important than quantifiable
intangible factors as far as possible.
iii. Distance between managers and operations research: OR being specialist job requires
a mathematician or a statistician, who might not be aware of business problems.
Similarly, a manager may fail to understand the complex working of OR Thus, there
is a gap between one who provides the solution and one who uses a solution. Thus,
the manager who becomes suspicious about the optimal solution. This problem is
mainly of training. Both the persons should have a working knowledge of each other’s
job to have better understanding of insights of the problem and its optimal solution.
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iv. Money and Time Costs: When the basic data are subjected to frequent changes,
incorporating them into the OR models is a costly affair. Moreover, a fairly good
solution at present may be more desirable than a perfect OR solution available after
sometime.
v. Implementation: Implementation of decisions is a delicate task. It must take into
account the complexities of human relations and behaviour.
TECHNIQUES OF OPERATIONAL RESEARCH
The techniques discussed below can be freely used by a progressive manager in the
decisionmaking process.
1. Probability. It is rarely possible to predict the future of the business world with
complete certainty. There is always an element of uncertainty as far as the future
courses of events are concerned. The probability concepts try to analyse the
uncertainties and bring out necessary data with reasonable accuracy for the purpose
of decision making. Probabilities are of two types:
a. Objective probability.
b. Subjective probability.
The objective probability is a probability for which there is a definite historical

evidence and common experience.
On the other hand, the subjective probability is a probability where historical evidence
is not available and the businessman has to rely on own estimation of a situation and
the likelihood of various outcomes.
The probability of any given action must be between 0 and 1 and the sum of all these
probabilities must be 1. If the probability is ‘0’ to an occurrence, it will not take place
and in the case the probability is 1 to an occurrence, it is certain that the occurrence
will take place.
2. Decision theory. The basic elements in a decision theory are:

a. Alternative course of action (strategies)
b. Various states of nature.
c. Knowledge about the likelihood of occurrence of each state of nature.
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d. Net value (pay-off) to decision-maker for each outcome.
e. Decision maker’s objectives.
The basic premise of decision theory is that the behavior of the future is
probabilistic and not deterministic. Various probabilities are assigned to the state
of nature on the basis of available information or subjective judgment and the
likely outcomes of the alternative courses of action are evaluated accordingly
before a particular alternative is selected.
This technique of decision making is based on expected monetary value and utility.
By analyzing the monetary value of utility from a given set of circumstances, a
model is constructed and accordingly decisions are taken. It is a well-known fact
that the environment within which decisions are taken can be logically divided
into three parts:
a. Certainty exists when one can specify exactly what will happen when
during the period for which the decision is being made.
b. Risk refers to a situation where one can specify a probability distribution
for the possible outcomes.
c. Uncertainty refers to the condition when one cannot specify the relative
likelihood of the outcomes.
Although some business decision can be made under condition nearing certainty,
elements of risk and uncertainty underline most of the decisions which mangers make.
3. Linear Programming. It is a method for selecting an optimum combination of factors
from a series of inter-related alternatives, each subjective to limitation. It involves the
development of linear equations to obtain the best solution for the allocation problem.
An allocation problem arises whenever there are a number of activities to perform but
limitations on either the number of resources or the way they can be spent prevent us
from performing each activity in the most effective way conceivable. In such situations
we wish to allot the available resources to the activities in a way that will optimize the
effectiveness.
Linear programming consists of:
a. The Simplex Method. This aims at maximizing or minimizing a given
function, subject to constraints in respect of each variable.
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b. The Transportation Problem. This deals with problems of matching the
origins (stores, warehouses and factories) with the outlets (process center,
market etc.) at a minimum cost of distribution and transportation.
c. The Assignment Problem. It can handle the problems of assigning a given
number of agents each one to the same number of tasks so as to result in
maximum efficiency or minimum cost.
4. Dynamic Programming. This technique deals with the problems that arise in
connection with multi period analysis and decisions. In contrast to Linear
Programming there does not exists a standard mathematical formulation of Dynamic
Programming, rather it is a general type of approach to problem solving and particular
equation must be developed to fit each individual situation. However, the basic
approach used in Dynamic programming is to break down a problem into series of
problems in such a way that answer to the first sub problem can be used in deriving
the solution to the next subproblem and so forth finally giving solution to the whole
problem.
5. Sequencing. This method solves problem where effectiveness measure (in terms of
cost, time, mileage, etc.), depends upon the sequence of performing given jobs. This
helps to determine a sequence in which given jobs should be performed if the objective
is to minimize the total efforts.
6. Inventory Control and Management. Inventory problems (models) are mainly
concerned with inventory decisions, the basic inventory decisions are:
− How much to order at one time?
− When to order this quantity?
The first decision namely – how much to order at one time, is to be balanced between
two pressures – the first pressure is to order huge lots so as to minimize ordering costs
and the other pressure is order small lots so as to minimize carrying costs. The
optimum course of action is a compromise between the two extremes. Arriving at a
model for deriving the economic order quantity (E.O.Q.) can do this.
The second decision namely – when to order this quantity, is decided by ascertaining
the re-ordering level. The re-ordering level is the point lying between the maximum
and the minimum levels at which time it is essential to intimate the purchase
department for fresh supplies of the material. This point will usually be slightly higher
than the minimum stock, to cover such emergencies as abnormal usage of material or
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unexpected delay in delivery of fresh supplies. Re-ordering level depends upon lead-
time, rate of consumption and economic ordering quantity.
7. Queueing Theory. Waiting lines at any service center are common phenomena and
Queuing theory is devoted to mathematical study of waiting lines. Various alternative
models have been used to describe such situations, but they basically share the
following common features:
a. Units requiring services are generated from an input source from different
kinds of queues for service.
b. a service discipline by which the queue members are selected for receiving
service.
c. a service mechanism which defines the type of service, after the completion of
which unit leaves the system or re-joins it for further processing. Many
alternative assumptions can be made about these common elements, and these
give rise to the different queuing problems.
8. Network Analysis (PERT/CPM). PERT or Program Evaluation and Review technique
and CPM or Critical Path Method are powerful management tools for planning and
control of complex jobs involving a large number of activities. A project consists of
well-defined collection of jobs or activities, some of which can be started
independently of others and all the jobs, have to be carried out in technological
sequence. The objective of PERT/CPM technique is to establish time duration for each
activity and to shorten the total duration acquired for the completion of the project
incurring the optimum cost. CPM introduces the concept of critical path, i.e., the
longest time required to complete a project and emphasizes the reduction of the
duration of the activities by the application of more resources by obtaining a trade-off
between cost and time completion.
9. Game Theory. Developed by Jon Von Neumann and Morgenson, this is a
mathematical theory applicable to competitive business problems. This technique
deals with situations where two or more (finite) individuals are making decisions
involving conflicting interests. However, the final decision depends upon the
decisions of the parties concerned.
10. Simulation. It is highly versatile technique of operational research. It has a wide-
ranging application in business situations. Simulation is particularly appropriate
where it is difficult to build a model for the real-life situation mathematically or if at
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all it is modelled, it is difficult to solve the model analytically. It may be noted that
simulation is a manipulation of a model constructed from the formal statements of
mathematical representation in respect of logical relations between the elements in a
structure or a system expressed in measurable terms. Thus, simulation is a process of
designing an experiment, which will duplicate or present as nearly as possible the real
situation and then watching what does happen. In every walk of life, the test of
adequacy of our decisions is the test of our reality. However, in practical life, modern
business cannot afford the luxury of testing the consequences of the major decisions
in the real-life world. Instead of finding out the characteristics of an aircraft or a
skyscraper, by actually building or constructing it, we can simulate its performance on
the basis of its characteristics. In this way we can experiment without incurring the
cost of failure. The simulation techniques allow the modern managers to examine the
probable consequences of his decisions without the risk of real-life experimentation.
11. Replacement Theory. This theory suggested the determination of the time when items
of plant should be replaced. The replacement of items is necessary because the
efficiency of an item deteriorates with time, or sometimes the item may fail completely.
Replacement, on the one hand, requires investment, on the other, saves operating cost
which otherwise is more while using old parts. Thus, a problem arises when the part
should be replaced so that cost is minimum. The replacement problems arise in three
conditions:
a. Replacements of item that fail completely and are expensive to be replaced.
b. Replacement of items whose efficiency deteriorates with time: and
c. Replacement of items because of obsolescence.
12. Reliability. Reliability theory is concerned with quantifying the frequency of failures
and developing an indicator of quality and dependability of a product. It is closely
associated with probability theory and therefore facilitates statistical analysis and
measurement. The assessment of reliability of equipment is most useful to the designer
in improving the quality of critical parts as well as in deciding how much to provide
by way of standby.
13. Some Advance O.R. Techniques.
a. Non-linear programming is that form of programming in which some or all of
the variables are curvilinear. In other words, this means that either the
objective functions or the constraints or both are not in liner form. In most of
the practical situations, we encounter with non-linear programming problems.
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b. Integer programming. Integer programming applies when the values of
decision variables are restricted to integers. Applications include Financial
Management and Plant Location.
c. Goal programming. Goal programming deals with the problems having
multiple objectives. It is a technique quite similar to linear programming.
Applications include production scheduling, transportation problems,
portfolio analysis and crop selection in agriculture.
d. Heuristic programming also known as discovery method refers to step by step
search towards an optimal when a problem cannot be expressed in
mathematical programming form. The search procedure examines
successively a series of combinations that lead to stepwise improvement in the
solution and the search stops when near optimal has been found.
e. Algorithmic programming is just the opposite of Heuristic programming. It
may also be termed as mathematical programming. This programming refers
to a thorough and exhaustive mathematical approach to investigate all aspects
of given variables in order to obtain optimal solution.
f. Quadratic programming refers to a modification of linear programming, in
which the objective function and constraint equations appear in quadratic
form, i.e., they contain squared terms.
g. Probabilistic programming also known as stochastic programming refers to
linear programming that includes an evaluation of relative risks and
uncertainties in various alternatives of choice for management decision.
OPERATIONAL RESEARCH IN INDIA
It is believed that OR in India started in 1949 with the opening of a unit at the Regional
Research Laboratory, Hyderabad for using Operational Research in planning and organizing
research. Ahmedabad Textile Industry Research Association organized an OR group for their
industrial problems. At the same time, another OR group was set up at the then Defense
Science Laboratory (DSL) under the guidance of Prof. D.S. Kothari, which devoted itself to the
purchase of stores, purchase and weapons evaluation. In 1953, an OR unit was formed at the
Indian Statistical Institute, Kolkata with a view to apply OR techniques to national planning
under the guidance of Prof. Mahalanobis.
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OR got its formal recognition in the country with the formation of O.R. Society of India (ORS)
in 1957. The first President of the Society was P.C. Mahalanobis. The society had the honour
of receiving the patronage and support of such eminent personalities like Jagjit Singh, Vikram
Sarabhai, etc. The society became the member of the International Federation of OR Societies
in 1959 and organized its first conference at all-India level during the same year. The
publication of the journal OPSEARCH by ORSI in 1964 further added to the growth of OR
activities in India.
A series of conferences/ symposia/ seminars were organized in the early years to promote
the development of Operational Research. ORSI has regularly organized its Annual
Convention since 1968. An international seminar “Second Operation Research Round-the–
world Meeting” sponsored by ORSI and IFORS was held at New Delhi during August 7-10,
1967. These efforts did result in encouraging the formation of a number of OR groups in
organizations such as Planning Commission, Railways, Public Sector Undertakings, e.g.,
BHEL, SAIL, EIL, ONGC, etc.
OPERATIONAL RESEARCH EDUCATION IN INDIA
OR education was formally initiated in India with formation of Indian Institute of

Management at Ahmedabad and Kolkata during the year 1961-62. Later the subject was taken
up for teaching as one of the papers in different universities, Institutes of Technology, Indian
Institute, and Indian Statistical Institute, Kolkata and New Delhi. The University of Delhi
started a full-time Master’s Degree program in Operational Research in 1963. Short-term
training programs are being run by the number of professional Institutes such as IIPA, NITIE,
NPC, etc. Today, almost all the universities and institutions in India are offering the inputs of
Operational Research in their curricula in some form or the other. Industries, government and
other agencies are gradually becoming conscious of the role of Operational Research in
decision making.
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THEORETICAL BACKGROUND
MARKETING RESEARCH
Marketing Research is the systematic, objective identification, collection, analysis,

dissemination and use of information for the purpose of assisting management in decision
making related to the identification and solution of problems in marketing. It is basically a set
of processes that links the consumers, customers and end users to the marketer through
information — information used to identify and define marketing opportunities and
problems; generate, refine and evaluate marketing actions; monitor marketing performance
and improve understanding of marketing as a process. Marketing research specifies the
information required to address these issues, designs the method for collecting information,
manages and implements the data collection process analyzes the results, communicates the
findings and implications.
Marketing Research is the systematic design, collection, analysis and reporting of data and
findings from a sample of individuals or organizations, relevant to a specific marketing
situation faced by the company, related to their characteristics, behavior, attitudes, opinions
or possessions. It includes all forms of research such as consumer and industrial survey,
psychological investigations, observations and panel studies.
Purpose of Marketing Research
The main purpose of marketing research is to provide information which will facilitate the
identification of a problem situation and to assist in arriving at the best possible decisions
when such situations are encountered. The market research analysts provide this information
to the company.
Research analysts are concerned with the potential sales of a product or service. They analyze
statistical data on past sales to predict future sales. They gather data on competitors and
analyze prices, sales and methods of marketing and distribution. Like economists, market
research analysts devise methods and procedures for obtaining the data they need. They often
design telephone, personal or mail interview surveys to assess consumer preferences. After
compiling the data, market research analysts evaluate it and make recommendations to their
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client or employer based upon their findings. They provide a company’s management with
information needed to make decisions on the promotion, distribution and design and pricing
of products or services.
The Nature of Marketing Research
The nature and role of marketing research can be better understood in the light of basic
marketing paradigm in diagram given below. The emphasis in marketing is on the
identification and satisfaction of customer needs.
In order to determine customer needs, marketing manager need information. They need
information about customers, competitors and other forces in market place. The task of
marketing research is to assess the information needs and provide management with relevant,
accurate, reliable, valid and current information. Today’s competitive marketing environment
and the ever-increasing costs attributed to poor decision making require marketing research
to provide sound information.
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Classification of Marketing Research
Marketing Research is classified as:
1. Problem identification research
• Marketing potential research
• Market share research
• Image research
• Market characteristic research
• Sales analysis research
• Forecasting research
• Business trends research

2. Problem-solving research
• Segmentation research
• Product research
• Pricing research
• Promotion research
• Distribution research
Marketing Research Process
Marketing research process consists of several steps that define the task to be accomplished
in conducting a market research study.
Step-1: Problem Definition
The first step in marketing research project is to define the problem. In defining the problem,
the researcher should take into account the purpose of the study, the relevant background
information, the information needed and how it will be used in decision making. Problem
definition involves discussion with the decision makers, interviews with industry experts,
analysis of secondary data and perhaps some qualitative research, such as focus group.
Step-2: Development of an approach to the problem
Development of an approach to the problem includes formulating an objective or theoretical

framework, analytical models, research questions and hypothesis and identifying the
information needed.
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Step-3: Research design formulation
A research design is a framework for conducting the marketing research project. Formulating
the research design involves the following steps: -
1. Definition of the information needed

2. Secondary data analysis
3. Qualitative research
4. Methods of collecting quantitative data
5. Measurement and scaling procedures
6. Questionnaire design
7. Sampling process and sample size
8. Plan of data analysis
Step-4: Fieldwork or data collection
Data collection involves a field force or staff that operates either in the field as in the case of
personal interviewing. (In home, mall intercept or computer assisted personal interviewing)
from an office by telephone, through mail.
Step-5: Data preparation and analysis
Data preparation includes the editing, coding, transcription and verification of data. Each
questionnaire is transcribed. The data are analyzed to derive the information related to the
components of marketing research problem. And this provides input in to the management
decision problem.
Step-6: Report preparation and presentation
The entire project should be documented in a written report that addresses the specific
research question identified, describes the approach, the research design, data collection and
data analysis procedures adopted and present the results and the major findings.
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CONSUMER BEHAVIOUR
Definition
“The study of the buying units and the exchange processes involved in acquiring, consuming
and disposing of goods, services, experiences and ideas.”
This simple definition contains a number of important concepts. First, note the inclusion in
the definition of the word “exchange”. Consumer is inevitably at the one end of an exchange
process in which resources are transferred between two parties. For example, an exchange
takes place between a doctor and a patient: the physician trades medical services for money.
Other resources - such as feelings, information and status may also be exchanged between the
parties. Exchange process is a fundamental element of Consumer Behavior. Exchanges occur
between Consumers and Firms. Again, looking at the definition the term “buying units”
rather than consumers. This is because purchases may be made by groups as well as
individuals. In fact, an important study area for Consumer researchers is organizational
buying behavior.
The exchange process involves a series of steps:
i. Acquisition Phase: Researchers analyse the factors that influence consumer’s product
and service choices. Indeed, most of the researchers has focused on the Acquisition
Phase. One factor associated with the search for and selection of goods and services is
product symbolism i.e., people often acquire a product to express to others certain
ideas and meanings they have about themselves.
ii. Consumption Phase: Consumption phase researchers analyse how consumers
actually use a product or service and the experience they obtain from such use. The
consumption experience is extremely important for service industry. In some
industries, such as restaurants, amusement parks and rock concert promotions, the
consumption experience is the reason for purchase.
iii. Disposition Phase of the product or service: Disposition phase refers to what
consumers do with a product once they have finished using it. In addition, it addresses
consumer satisfaction levels after purchasing a good or service. When consumers have
unrealistic expectations of a product, they are unlikely to realize anticipated outcomes
and they will probably be highly dissatisfied.
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Consumer Behavior is a young discipline. It incorporates theories and concepts from all
behavioral sciences, so that when studying the Acquisition, Consumption & Disposition of
products, services and ideas, one has to explore the discipline of Marketing, Psychology,
Sociology, Anthropology, Demography and Economics.
Why study Consumer Behavior?
Understanding Consumers and consumption process brings a number of benefits, among

them the ability to assist managers in their decision making, provide marketing researchers
with a knowledge base from which to analyze Consumers, help legislators and regulators
create laws and regulations concerning the purchase and sale of goods and services and assist
the average Consumer in making better purchase decisions.
Reasons for Studying Consumer Behavior
i. Consumer analysis should be the foundation of marketing management. It assists

managers to:
• Design the marketing mix.
• Segment the market place.
• Position and differentiate products.
• Perform an environmental analysis.
• Develop market research studies.
ii. Consumer Behavior should play an important role in the development of public
policy.
iii. Consumer analysis provides knowledge of overall human behavior.
iv. The study of Consumer Behavior provides three types of information:
• A Consumer orientation.
• Facts about human Behavior.
• Theories to guide the thinking process.
Three research perspectives on Consumer Behavior
A key feature of the field is its research base. As a social science, Consumer Behavior employs
research methods and procedures from psychology, sociology, economics and anthropology.
To generalize, research in Consumer Behavior is organized according to three research
perspectives that act as guides in thinking about and identifying the factors that influence
consumer acquisition behavior.
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These three perspectives are: -
• The Decision-Making Perspective

• The Experimental Perspective
• The Behavioral Influence Perspective
Roles of Buyers
While individual consumers make buying decisions for themselves, the purchase of
households and organizations are the results of group decision-making-processes by DMU.
The role of buyers is that of: -
• Initiator
• Purchaser
• Decision maker
• Influencer
• Gatekeeper
The Buyer Decision
Understanding the buyer behavior is the keystone to developing successful Marketing

strategies; marketing managers must have a clear understanding of the process by which
buying decisions are made, whether by individual consumers, by households or by
organizations.
The steps in the buyer decision process: -
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Factors Influencing Consumer Behavior
The factors that influence Consumer Behavior are divided into two categories
1. Internal Factors: At the care of any individual’s Consumer Behaviour is his or her own
psychological makeup. There are number of concepts from fields of psychology and
social psychology that are critical to an understanding of Consumer Behaviour. The
Internal Factors include the psychological factors as
• Needs and Motives
• Personality
• Perception
• Learning
• Attitudes
• Involvement
2. External Factors: The overall society in which a Consumer lives has considerable effect
on Consumer Behavior. The beliefs and values and indeed, the world view that an
individual holds are learned and transmitted within the societal framework. The effect
of those values is often difficult to assess because they are deeply, almost
unconsciously, held. They are also enduring, changing slowly, even in the face of
major technological and social change. The various sociocultural factors, then have a
tremendous effect on people’s behavior as consumers. The external factors can be
categorized as
• Sociocultural factors
o Societal values
o Economic factors
o The media
o Reference groups
• Demographic characteristics
o Age
o Gender
o Income
o Educational level
o Occupation
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QUESTIONNAIRE DESIGN
This is the information age. More information has been published in the last decade than in
all previous history. Everyone uses information to make decisions about the future. If our
information is accurate, we have a high probability of making a good decision. If our
information is inaccurate, our ability to make a correct decision is diminished. Better
information usually leads to better decisions.
Questionnaires are an inexpensive way to gather data from a potentially large number of
respondents. Often, they are the only feasible way to reach a number of reviewers large
enough to allow statistically analysis of the results.
It is often considered as a structured technique for data collection that consists of a series of
questions, written or verbal, that a respondent answer. A well-designed questionnaire that is
used effectively can gather information on both the overall performance of the test system as
well as information on specific components of the system. If the questionnaire includes
demographic questions on the participants, they can be used to correlate performance and
satisfaction with the test system among different groups of users.
The steps required to design and administer a questionnaire include:
1. Defining the Objectives of the survey

2. Determining the Sampling Group
3. Writing the Questionnaire
4. Administering the Questionnaire
5. Interpretation of the Results
Before these steps are examined in detail, it is good to consider what questionnaires are good
at measuring and when it is appropriate to use questionnaires.
Objectives of Questionnaire
Questionnaire has three specific objectives: -
i. It must translate the information needed into a set of specific questions that a
respondent can and will answer.
ii. A questionnaire must uplift, motivate and encourage the respondent to become
involved in the interview, to cooperate and to complete the interview.
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iii. A questionnaire should minimize response error. Error arises when respondents give
inaccurate answers or their answers are misreported or misanalysed.
Questionnaire Design Process
Ways to Get Information:
There are six common ways to get information. These are:
i. Literature Searches
ii. Talking with People
iii. Focus Groups
iv. Personal Interviews
v. Telephone Surveys
vi. Mail Surveys
Questionnaire Research Flow Chart
Questionnaire research design proceeds in an orderly and specific manner. Each item in the
flow chart depends upon the successful completion of all the previous items. Therefore, it is
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important not to skip a single step. Notice that there are two feedback loops in the flow chart
to allow revisions to the methodology and instruments.
What can questionnaires measure?
Questionnaires are quite flexible in what they can measure, however they are not equally
suited to measuring all types of data. We can classify data in two ways, Subjective vs.
Objective and Quantitative vs. Qualitative.
When a questionnaire is administered, the researchers control over the environment will be
somewhat limited. This is why questionnaires are inexpensive to administer. This loss of
control means the validity of the results are more reliant on the honesty of the respondent.
Consequently, it is more difficult to claim complete objectivity with questionnaire data then
with results of a tightly controlled lab test. In general, questionnaires are better suited to
gathering reliable subjective measures, such as user satisfaction, of the system or interface in
question.
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Questions may be designed to gather either qualitative or quantitative data. By their very
nature, quantitative questions are more exact then qualitative. Any question must be carefully
crafted, but in particular questions that assess a qualitative measure must be phrased to avoid
ambiguity. Qualitative questions may also require more thought on the part of the participant
and may cause them to become bored with the questionnaire sooner. In general, we can say
that questionnaires can measure both qualitative and quantitative data well, but that
qualitative questions require more care in design, administration and interpretation.
When to use a questionnaire?
There is no all-encompassing rule for when to use a questionnaire. The choice will be made
based on a variety of factors including the type of information to be gathered and the available
resources for the experiment.
i. Defining the Objectives of the Survey

The importance of well-defined objectives cannot be over emphasized. A
questionnaire that is written without a clear goal and purpose is inevitably going to
overlook important issues and waste participants' time by asking useless questions.
The questionnaire may lack a logical flow and thereby cause the participant to lose
interest. Consequential, what useful data you may have collected could be further
compromised. The problems of a poorly defined questionnaire do not end here, but
continue on to the analysis stage. It is difficult to imagine identifying a problem and
its cause. In other words, how would it be possible to reach insightful conclusions if
one didn't actually know what they had been looking for or planning to observe.
A good rule of thumb is that if you are finding it difficult to write the questions, then
you haven't spent enough time defining the objectives of the questionnaire. Go back
and do this step again. The questions should follow quite naturally from the objectives.
ii. Writing the Questionnaire
If the preceding steps have been faithfully executed, most of the questions will be on
obvious topics. Most questionnaires, however, also gather demographic data on the
participants. This is used to correlate response sets between different groups of people.
It is important to see whether responses are consistent across groups. For example, if
one group of participants is noticeably less satisfied with the test interface, it is likely
that the interface was designed without fair consideration of this group's specific
needs. This may signify the need for fundamental redesign of the interface. In addition,
certain questions simply may only be applicable to certain kinds of users.
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Typically, demographic data is collected at the beginning of the questionnaire, but
such questions could be located anywhere or even scattered throughout the
questionnaire. One obvious argument in favour of the beginning of the questionnaire
is that normally background questions are easier to answer and can ease the
respondent into the questionnaire.
It is important to ask only those background questions that are necessary. Do not ask
income of the respondent unless there is at least some rational for suspecting a
variance across income levels. There is often only a fine line between background and
personal information. You do not want to cross over in to the personal realm unless
absolutely necessary.
Advantages of Questionnaires
• Questionnaires are very cost effective when compared to face-to-face interviews.

This is especially true for studies involving large sample sizes and large geographic
areas.
• Questionnaires are easy to analyze. Data entry and tabulation for nearly all surveys
can be easily done with many computer software packages.
• Questionnaires are familiar to most people. Nearly everyone has had some
experience completing questionnaires and they generally do not make people
apprehensive.
• Questionnaires reduce bias. There is uniform question presentation and no middle-
man bias. The researcher's own opinions will not influence the respondent to answer
questions in a certain manner. There are no verbal or visual clues to influence the
respondent.
• Questionnaires are less intrusive than telephone or face-to-face surveys. When a
respondent receives a questionnaire in the mail, he is free to complete the
questionnaire on his own time-table. Unlike other research methods, the respondent
is not interrupted by the research instrument.
Disadvantages of Questionnaires
• One major disadvantage of written questionnaires is the possibility of low response

rates. Low response is the curse of statistical analysis. It can dramatically lower our
confidence in the results. Response rates vary widely from one questionnaire to
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another (10% - 90%), however, well-designed studies consistently produce high
response rates.
• Another disadvantage of questionnaires is the inability to probe responses.
Questionnaires are structured instruments. They allow little flexibility to the
respondent with respect to response format. In essence, they often lose the "flavors of
the response". By allowing frequent space for comments, the researcher can partially
overcome this disadvantage. Nearly 90% of all communication is visual. The lack of
personal contact will have different effects depending on the type of information being
requested. A questionnaire requesting factual information will probably not be
affected by the lack of personal contact.
• When returned questionnaires arrive in the mail, it's natural to assume that the
respondent is the same person you sent the questionnaire to. This may not actually be
the case. Many a times, business questionnaires get handed to other employees for
completion. Housewives sometimes respond for their husbands. Kids respond as a
prank. For a variety of reasons, the respondent may not be who you think it is.
• Finally, questionnaires are simply not suited for some people. For example, a written
survey to a group of poorly educated people might not work because of reading skill
problems.
General Considerations
• Be sure to commit the study goals to writing.

• Formulate a plan for doing the statistical analysis during the design stage of the
project.
• Make the envelope unique.
• Provide a well-written cover letter.
• Give your questionnaire a title that is short and meaningful to the respondent.
• Include clear and concise instructions on how to complete the questionnaire. • Use
simple and direct language.
• Leave adequate space for respondents to make comments.
• Place the most important items in the first half of the questionnaire.
• Hold the respondent's interest.
• Provide incentives as a motivation for a properly completed questionnaire.
• Use professional production methods for the questionnaire.
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SAMPLING DESIGN AND PROCEDURES
Sampling is a process of selecting a few items from a given population to be investigated.

Sampling is crucial for Market Research. The Importance of sampling in market research can
be followed by the fact that none of the organizations can reach to their each and every
customer. Sampling helps an organization to stay in connect with its customers for their
requirements, needs, and feedback which is so valuable for every business and organization
to grow in this competitive market.
Why sampling is needed?
• Impossible to access every customer, whether current or future

• Expensive and time-consuming to collect data from the whole population of a market.
Importance of Sampling
The importance of sampling can be discussed under the following two circumstances.
i. Customer Satisfaction: Today’s competition in the market on local as well as on a

global level is at peak. Companies are not only looking for feedback from customers
regarding specific services or products, but are also looking to know about the
sentiments of the customer regarding any specific product or service. By analysing the
data collected through various sampling techniques, we get to know how customers
respond to the services or products accessible in the market.
ii. Product Launching: After analysing the collected data, companies develop new
products for the customers. With time, they get to know about the more specific
requirements of the customers. They improvise their older products by taking
feedback from the customers.
Sampling Design Process
The sampling design process includes five steps that are shown sequentially below.
These steps are closely interrelated and relevant to all aspects of marketing research project,
from problem definition to presentation of results.
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Steps in the Sampling Process
Step 1: The primary step is to define the population. It should be defined in terms of sampling
i. The elements
ii. The sampling units
iii. The extent and
iv. The time
Step 2: The next step is to specify the sampling frame.
Step 3: The third step is to choose an appropriate sampling design for selecting the same. The
sampling design describes the procedure by which a sample is selected.
Step 4: Once We have decided the procedure by which sample would be selected, the next
step is to determine how large sample should be taken.
Step 5: The interviewers who are to go to field to collect actual data need very clear and
accurate instructions as to how to do this job. The sampling planning is therefore not complete
until these instructions are prepared and handed over to the investigators.
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The Importance of Sample Size Determination
Research surveys can help us gain insights from our target audience. The data we collect gives
us insights to meet customer needs, leading to an increase in sales and customer loyalty.
Sample size determination is imperative to the researcher to determine the right number of
respondents, keeping in mind the quality of the research study.
Sending out too many surveys can be expensive without giving us a definitive advantage over
a smaller sample. But if we send out too few, we won’t have enough data to draw accurate
conclusions. This is where knowing how to determine sample size can give us an edge over
our competitors. There are a few ways in which we can determine the correct sample size.
Classification of Sampling Techniques
Sampling techniques are classified as either probability or non-probability. In probability

sampling, each member of the population has a known non-zero probability of being selected.
Probability methods include random sampling, systematic sampling and stratified sampling.
In non-probability sampling, members are selected from the population in some non-random
manner. These include convenience sampling, judgment sampling, quota sampling and
snowball sampling.
The advantage of probability sampling is that sampling error can be calculated. Sampling
error is the degree to which a sample might differ from the population. When inferring to the
population, results are reported plus or minus the sampling error. In non-probability
sampling, the degree to which the sample differs from the population remains unknown.
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1. PROBABILITY SAMPLING TECHNIQUES
a. Simple Random sampling is the purest form of probability sampling. Each
member of the population has an equal and known chance of being selected.
When there are very large populations, it is often difficult or impossible to
identify every member of the population, so the pool of available subjects
becomes biased.
b. Systematic sampling is often used instead of simple random sampling. It is
also called an nth name selection technique. After the required sample size has
been calculated, every nth record is selected from a list of population members.
As long as the list does not contain any hidden order, this sampling method is
as good as the simple random sampling method. Its only advantage over the
simple random sampling technique is simplicity. Systematic sampling is
frequently used to select a specified number of records from a computer file.
c. Stratified sampling is commonly used probability method that is superior to
simple random sampling because it reduces sampling error. The researcher
first identifies the relevant stratums and their actual representation in the
population. Simple random sampling is then used to select subjects from each
stratum until the number of subjects in that stratum is proportional to its
frequency in the population. Stratified sampling is often used when one or
more of the stratums in the population have a low incidence relative to the
other stratums. There are two types of stratified sampling: -
i. Proportionate stratified sampling: In proportionate stratified
sampling, the size of sample drawn from each stratum is
proportionate to the relative size of the stratum in the total
population.
ii. Disproportionate stratified sampling: In disproportionate
stratified sampling, the size of the sample from each stratum is
proportionate to the relative size of that stratum and to the
standard deviation of the distribution of the characteristic of
interest among all the elements in that stratum.
d. Cluster sampling – in cluster sampling, the target population is first divided
into mutually exclusive and collectively exhaustive subpopulations called
clusters. Then a random sample of clusters is selected based on probability
sampling technique such as simple random sampling. It is of three types.
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i. One Stage Sampling
ii. Two Stage Sampling
iii. Multi Stage Sampling
2. NONPROBABILITY SAMPLING TECHNIQUES

a. Convenience sampling is used in exploratory research where the researcher is
interested in getting an inexpensive approximation of the truth. As the name
implies, the sample is selected because they are convenient.
b. Judgment sampling is a common non-probability method. The researcher
selects the sample based on judgment. This is usually and extension of
convenience sampling. For example, a researcher may decide to draw the
entire sample from one "representative" city, even though the population
includes all cities.
c. Quota sampling is the non-probability equivalent of stratified sampling. Like
stratified sampling, the researcher first identifies the stratums and their
proportions as they are represented in the population. Then convenience or
judgment sampling is used to select the required number of subjects from each
stratum.
d. Snowball sampling is a special non probability method used when the desired
sample characteristic is rare. It may be extremely difficult or cost prohibitive to
locate respondents in these situations. It relies on referrals from initial subjects
to generate additional subjects. While this technique can dramatically lower
search costs, it comes at the expense of introducing bias because the technique
itself reduces the likelihood that the sample will represent a good cross section
from the population.
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FACTOR ANALYSIS
Factor analysis is a method of data reduction. It does this by seeking underlying unobservable
(latent) variables that are reflected in the observed variables (manifest variables).
Mathematically, factor analysis is somewhat similar to multiple regression analysis, in that

each variable is expressed as a linear combination of underlining factors. The amount variance
a variable share with all other variables included in the analysis is referred to as communality.
The co-variation among the variables is described in terms of small number of common factors
plus a unique factor for each variable. If the variables are standardized, the factor model may
be represented as:
X𝑖 = 𝑎𝑖1𝐹1 + 𝑎𝑖2𝐹2 + 𝑎𝑖3𝐹3 + ⋯ + 𝑎𝑖𝑚𝐹𝑚 + 𝑣𝑖𝑢𝑖
Where,
𝑥𝑖 = i th standardized variable
𝑎𝑖𝑗 = standardized multiple regression coefficient of variable i on common factor j
𝐹 = common factor
𝑣𝑖 = standardized regression coefficient of variable i on unique factor j
𝑢𝑖 = the unique factor for variable i
𝑚 = number of common factors
The unique factors are uncorrelated with each other and with the common factors. The
common factors themselves can be expressed as linear combinations of the observed variables.
𝐹𝑖 = 𝑊𝑖1𝑥1 + 𝑊𝑖2𝑥2 + 𝑊𝑖3𝐹𝑥3 + ⋯ + 𝑊𝑖𝑘𝑥𝑘
Where,
𝐹𝑖 = estimate of ith factor
𝑊𝑖 = weight or factor score coefficient
𝑘 = number of variables
Since the goal of factor analysis is to model the interrelationships among items, we focus
primarily on the variance and covariance rather than the mean. Factor analysis assumes that
variance can be partitioned into two types of variance, common and unique:
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• Common variance is the amount of variance that is shared among a set of items. Items
that are highly correlated will share a lot of variance.
o Communality (also called h2) is a definition of common variance that ranges
between 0 and 1. Values closer to 1 suggest that extracted factors explain more
of the variance of an individual item.
• Unique variance is any portion of variance that’s not common. There are two types:
o Specific variance: Variance of each variable unique to that variable and not
explained or associated with other variables in the factor analysis or the
component of unique variance which is reliable but not explained by common
factors.
o Error variance: Unreliable and inexplicable variation in a variable. Error
variance is assumed to be independent of common variance, and a component
of the unique variance of a variable.
Types of Factor Analysis
Exploratory factor analysis (EFA) seeks to uncover the underlying structure of a relatively
large set of variables. The researcher's à priori assumption is that any indicator may be
associated with any factor. This is the most common form of factor analysis. There is no prior
theory and one uses factor loadings to intuit the factor structure of the data.
Confirmatory factor analysis (CFA) seeks to determine if the number of factors and the
loadings of measured (indicator) variables on them conform to what is expected on the basis
of preestablished theory. Indicator variables are selected on the basis of prior theory and factor
analysis is used to see if they load as predicted on the expected number of factors. The
researcher's à priori assumption is that each factor is associated with a specified subset of
indicator variables. A minimum requirement of confirmatory factor analysis is that one
hypothesize beforehand the number of factors in the model, but usually also expectations
about which variables will load on which factors.
Statistics Associated with Factor Analysis
The key statistics associated with factor analysis are as follows:
Bartlett’s test of sphericity: Bartlett’s test of sphericity is a test statistic used to examine the
hypothesis that the variables are uncorrelated in the population. In other words, the
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population correlation matrix is an identity matrix; each variable correlates perfectly with
itself (r = 1) but has no correlation with the other variables (r = 0).
Correlation matrix: A correlation matrix is a lower triangle matrix showing the simple
correlations, r, between all possible pairs of variables included in the analysis. The diagonal
elements, which are all 1, are usually omitted.
Communality: Communality is the amount of variance a variable share with all the other
variables being considered. This is also the proportion of variance explained by the common
factors.
Eigenvalue: The eigenvalue represents the total variance explained by each factor.
Factor loadings: Factor loadings are simple correlations between the variables and the factors.
Factor loading plot: A factor loading plot is a plot of the original variables using the factor
loadings as coordinates.
Factor matrix: A factor matrix contains the factor loadings of all the variables on all the factors
extracted.
Factor scores: Factor scores are composite scores estimated for each respondent on the derived
factors.
Factor scores coefficient matrix: This matrix contains the weights, or factor score coefficients,
used to combine the standardized variables to obtain factor scores.
Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy: The Kaiser-Meyer-Olkin (KMO)

measure of sampling adequacy is an index used to examine the appropriateness of factor
analysis. High values (between 0.5 and 1.0) indicate factor analysis is appropriate. Values
below 0.5 imply that factor analysis may not be appropriate.
Percentage of variance: This is the percentage of the total variance attributed to each factor.
Residuals: Residuals are the differences between the observed correlations, as given in the
input correlation matrix, and the reproduced correlations, as estimated from the factor matrix.
Scree plot: A scree plot is a plot of the eigenvalues against the number of factors in order of
extraction.
Extracting Factors
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There are two approaches to factor extraction which stems from different approaches to
variance partitioning:
Principal Components Analysis: Unlike factor analysis, principal components analysis or

PCA makes the assumption that there is no unique variance, the total variance is equal to
common variance. If the total variance is 1, then the common variance is equal to the
communality
Common Factor Analysis: The partitioning of variance differentiates a principal components

analysis from what we call common factor analysis. Both methods try to reduce the
dimensionality of the dataset down to fewer unobserved variables, but whereas PCA assumes
that their common variances take up all of total variance, common factor analysis assumes
that total variance can be partitioned into common and unique variance.
Eigenvalues represent the total amount of variance that can be explained by a given principal
component. They can be positive or negative in theory, but in practice they explain variance
which is always positive.
• If eigenvalues are greater than zero, then it’s a good sign.

• Since variance cannot be negative, negative eigenvalues imply the model is ill-
conditioned.
• Eigenvalues close to zero imply there is item multicollinearity, since all the variance
can be taken up by the first component.
Eigenvalues are also the sum of squared component loadings across all items for each
component, which represent the amount of variance in each item that can be explained by the
principal.
Eigenvectors represent a weight for each eigenvalue. The eigenvector times the square root of
the eigenvalue gives the component loadings which can be interpreted as the correlation of
each item with the principal component.
Component Matrix
The components can be interpreted as the correlation of each item with the component. For
example, Item 1 is correlated 0.659 with the first component.
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The square of each loading represents the proportion of variance (think of it as an R2 statistic)
explained by a particular component. For Item 1, (0.659)2=0.434 or 43.4% of its variance is
explained by the first component.
Total Variance Explained
The eigenvalue represents the total amount of variance that can be explained by a given
principal component. Starting from the first component, each subsequent component is
obtained from partial ling out the previous component. Therefore, the first component
explains the most variance, and the last component explains the least. Looking at the Total
Variance Explained table, you will get the total variance explained by each component.
Choosing the number of components to extract (Scree Plot)
Since the goal of running a PCA is to reduce our set of variables down, it would useful to have
a criterion for selecting the optimal number of components that are of course smaller than the
total number of items. One criterion is the choose components that have eigenvalues greater
than 1.
Rotation Methods:
Rotation serves to make the output more understandable and is usually necessary to facilitate
the interpretation of factors. The sum of eigen values is not affected by rotation, but rotation
will alter the eigen values of particular factors. The original, un- rotated principal components
solution maximizes the sum of squared factor loadings, efficiently creating a set of factors
which explain as much of the variance in the original variables as possible. The amount
explained is reflected in the sum of the eigen values of all factors.
However, un-rotated solutions are hard to interpret because variables tend to load multiple
factors.
Varimax rotation: is an orthogonal rotation of the factor axes to maximize the variance of the
squared loadings of a factor (column) on all the variables (rows) in a factor matrix, which has
the effect of differentiating the original variables by extracted factor. That is, it minimizes the
number of variables which have high loadings on any one given factor. Each factor will tend
to have either large or small loadings of particular variables on it. A varimax solution yields
results which make it as easy as possible to identify each variable with a single factor. This is
the most common rotation option.
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Quartimax rotation: is an orthogonal alternative which minimizes the number of factors
needed to explain each variable.
Equimax rotation: is a compromise between Varimax and Quartimax criteria.
Direct oblimin rotation: is the standard method when one wishes a non-orthogonal solution
that is, one in which the factors are allowed to be correlated. This will result in higher
eigenvalues but diminished interpretability of the factors.
Promax rotation: is an alternative non-orthogonal rotation method which is computationally

faster than the direct oblimin method and therefore is sometimes used for very large datasets.
Steps in Conducting Factor Analysis
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Industry Overview
India is the second-largest producer of food products next to China and is having the potential
of being the biggest with its food and agricultural sector. The bakery industry in India is one
of the biggest contributors to the country’s processed food industry. Bakery products which
include bread and biscuits account for over 82 percent of the total bakery products produced
in the country.
The bakery segment in India can be classified as three broad segments of bread, biscuits and
cakes. Organised bakery sector in India produces about 1.3 million tonnes of products and the
rest is produced by the unorganised sector and small scale local manufacturers. Even if there
are many automatic and semi-automatic bread and biscuit manufacturing units available in
India, most of us prefer fresh bread and other products from the local bakery.
But with the advent of MNCs selling pizzas and burgers, people are changing their tastes too.
Many homegrown and international players have taken the market and the competition has
increased.
The rising trend of “Natural nutrition”, “healthy living” and “organic products” has
significantly raised the consumers’ demand on whole wheat, light, natural and additive-free
products. In recent years, the growth in sales of packaged, whole wheat, wholemeal, gluten-
free and natural products is an important indication of this new and healthy living sense.
India Cake market is forecasted to reach US$ 882.24 million by 2024 growing at a CAGR of
12.5% during the forecast period from 2019 to 2024. As the consumption of cakes is gaining
market traction, owing to consumers’ changing perceptions, as well as their convenience and
health attribute, leading to a rise in popularity of on-the-go cake products, which are baked
off or made at the convenience of the consumer.
As a result of urbanization and increase of the working population, the preferences for out-
of-home consumption and demand for instant and nutritious products have increased, which
is expected to propel the market growth.
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Indian Packaged Cake Market
The packaged cake segment has been holding a very low market share since 2015 in the India
packaged bakery market. However, it is the fastest growing category, due to the development
of vegan packaged cakes. India being a very diverse country, with approximately 40% of its
population being vegetarian, the introduction of vegan cakes is expected to contribute a major
chunk to the market growth. Frontier Biscuit Factory Pvt Ltd Is one of the popular companies
in the northern part of India, with a rich product portfolio in the vegan packaged cake market.
Both online and offline sales channels make equal contributions to the market growth in India.
The major market is dominated by rural and semi-urban population in areas, where
convenience stores and supermarket/hypermarkets gain high tractions. Online channels are
gaining popularity in the urban areas, especially in the tier-1 and 2 cities, due to the high
market penetration of grocery delivery services, like Bigbasket and Amazon groceries.
India cake market is highly fragmented, particularly with the significant presence of
numerous local and regional players. Monginis, Elite Group of Companies, Frontier Biscuit
Factory Pvt. Ltd, Winkies etc. are the major players operating in the market. Whereas,
Monginis is one of the prominent players in the market , due to its diversified product
portfolio. The major strategies adopted by the companies in the global bakery product market
are new product launches, agreements/partnerships, expansions, and acquisitions.
A large number of bakers are offering healthy alternatives to high-calorie and high sugar
products, which is anticipated to be a primary factor for market growth. The addition of new
flavors in the market is also anticipated to positively impact industry growth.
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Company Profile
Based in Ernakulam (Kerala), Aviyan Food Products was incorporated in the year 2016.
Under the headship of our skilled mentors, they have been able to establish a strong
foothold in the industry.
Quality Assurance
Their products are strictly inspected by quality controllers ensuring no scope of
contamination and longer shelf life. The products that they offer are packaged using
premium packaging materials in order to keep their freshness intact. These products have
wide application in hotels and homes so as to add a rich flavor to food.
Their Team
Their professionals have years of experience in this domain that enables them to deliver the
finest quality products to customers. Besides this, they work in close coordination with each
other so as to maintain harmony in the organization.
Prompt Delivery
They have wide distribution networks that makes easy for them to deliver products in
different parts of the nation within the promised time frame. Their modern transit facilities
enable prompt and safe delivery of products.
Name of CEO Mr. Avik Bhattacharjee
Year of Establishment 2016
Nature of Business Manufacturer, Exporter & Supplier
Number of Employees 18
Annual Turnover Rs. 5 to 25 Crore Approx.
Market Covered Worldwide
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Products
• Garam Masala
• White Pepper Seeds
• Dried Ginger(Snot)
• Black Cardamom
• Green Cardamom
• Black Pepper
• White Pepper
• Nutmeg
• Mace Flower
• Clove
• Cinnamon
• Star Anise Seeds
• Bay Leaf
• Turmeric Finger
• Dry Ginger
• Cumin Seed
• Coriander Seeds
• Turmeric Powder
• Red Chilli Powder
• Cumin Powder
• Coriander Powder
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Research Design and Methods
Research Problem
Consumer behavior is an important discipline of marketing which deals with psychology of

customers. With rapid increase in population and changing trends, the interests of
consumers are also changing. The main reason for the changing interests of the consumers is
due to their change in behavior.
The behavior of consumers cannot be measured so easily. It is a very difficult task. But we
can measure the factors that make them behave in a particular manner. This study mainly
deals with the factors that influence them to behave in a certain manner. Here, the study
focuses on one of the rapidly growing sectors of the FMCG market, i.e., packaged cakes.
The problem statement for the above-foresaid problem is to study the “General Perception
towards Packaged Cakes”.
Objective of the Study
• To analyze and assess the buying behavior of consumers towards packaged cakes.
• To study the impact of demographic factors and drivers of consumer purchase of
packaged cakes.
• To study the factors influencing the purchase behavior of packaged cakes.
Significance of the Study
The company wishes to make a market entry with a new line of packaged cakes. The study
will be able to suggest the actions that can be taken to improve the marketing strategy of this
new product in the Indian market.
Scope of the Study
The study is based on responses from a questionnaire and data was collected from the
Delhi/ NCR region. In this study only packaged cakes of the FMCG market has been
considered and 16 variables have been taken for the study out of the long list of variables. A
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total of 250 responses have been studied. All the statistical part of the research has been
done on SPSS and results are recorded.
Research Methodology
This research is based on primary data. For collection of primary data, a well-structured
questionnaire was prepared, it was shared to teachers and friends to know the feasibility,
suggestions from them were included in the questionnaire and final draft of questionnaire
was prepared. All the data collected from the survey was tabulated in well-structured
statistical tables and results have been derived from these tables.
Data Source:
The research includes gathering data from primary sources. Primary data is first-hand
information and is original in nature. Primary data was important to understand the
consumer response towards the packaged cakes.
Research Approach and Design:
The approach used to collect primary data was the survey method. Survey method is found
to be the most appropriate to collect primary data. A questionnaire was constructed with
questions pertaining to our hypotheses for the defined problem. The survey is performed on
the sample. The following is the relevant information about the sample.
1. Target Population: The collection of elements or objects that possess the information
about which inference are to be made.
2. Element: An object that possesses the information sought by the researcher.
3. Sampling Unit: The basic unit of containing that elements of the population to be
sampled.
4. Sampling Frame: A representation of the elements of the target population. It
consists of a list or set of directions for identifying the target population.
5. Sampling Technique: The technique for sampling is Simple Random Sampling.
Simple random sampling means that every member of the sample is selected from
the group of population in such a manner that the probability of being selected for all
members in the study group of population is the same. In this case the standard
deviations of the distribution of characteristic of interest (of population) are not
known.
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6. Sample Size: The formula used for calculating the sample size under simple random
sampling is given as
𝒁𝟐 𝒑(𝟏 − 𝒑)
𝒔=
𝒆𝟐
Where,
s represents the sample size,
Z represents the value from the statistical table associated with the confidence level (1.96),
p represents an estimate of the proportion of the people falling into the group in which we
are interested in the population.
In this case, the characteristic of interest proportion of the population that consumes
packaged cakes (according to Pilot Testing) is p = 0.801 (80.1%).
q=1–p
e = the proportion of error, we are prepared to accept i.e., e = ±5%
Using the above formula, we were able to estimate the sample size which comes out to be
s = 245.
Data Compilation and Analysis:
After the data was collected with the help of a questionnaire, we tabulated the data. Of all
the data collected from the survey the relevant information was collected and based on
relevant data analysis was done. All the analysis done with help of statistical tools such as
hypothesis testing are discussed under statistics section. Based on the analysis, we found out
about relevant problems and solutions for the marketing strategy of the product. Based on
the findings relevant suggestions proposed through the study.
Report and Presentation:
All aspects of the research were collated together and put forth to the upper management as
a report and presentation of the company for their further consideration.
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Analysis and Results
Demographic Analysis
Age
Age group Frequency Percent Cumulative Percent
Below 16 16 6.40% 6.40%
17 - 25 109 43.60% 50.00%
26 - 35 62 24.80% 74.80%
36 - 45 38 15.20% 90.00%
Above 46 25 10.00% 100.00%
Grand Total 250 100.00%
Age Group
Above 46 Below 16 Below 16
10% 6%
17 - 25
36 - 45 26 - 35
15%
36 - 45
Above 46
17 - 25
44%
26 - 35
25%
Interpretation:
The maximum proportion of our respondents i.e., 44% fall in the age group of 17-25 years,
followed by the age group 26-35 years with 25%. Around 15% of our sample belong to the age
group of below 36-45 years followed by 10% of our respondents falling in the age group of
above 46 years. A very small proportion of our sample respondents 6% fall in the age group
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of below 10 years. The majority of the sample respondents proportion i.e., 93% are falling in
the age bracket of above 17 years.
Gender
Gender Frequency Percent
Female 134 53.60%
Male 116 46.40%
Gender
Male, 116, 46%

Female, 134, 54%
Female
Male
Interpretation:
Females constituted 54% (134) of the total respondents followed by the males who constituted
46%(116) of our sample population.
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Marital Status
Marital Status Frequency Percent
Married with Children 62 24.80%
Married without Children 47 18.80%
Unmarried 141 56.40%
Marital Status
Unmarried, 141, 56% Married with Children,

62, 25%
Married with Children

Married without Children
Unmarried
Married without
Children, 47, 19%
Interpretation:
Out of the total 250 respondents, majority of the respondents are unmarried contributing
around 56% of the total, followed by 25% who are married with children.
Around 19% of the total respondents are married without children with a count of 47.
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Income Structure:
Family Income Frequency Percent Cumulative Percent
Below 5 lakhs 31 12.40% 12.40%
5 - 10 lakhs 66 26.40% 38.80%
10 - 15 lakhs 90 36.00% 74.80%
Above 15 lakhs 63 25.20% 100.00%
Annual Family Income

Below 5 lakhs
5 - 10 lakhs
10 - 15 lakhs
Above 15 lakhs
Above 15 lakhs, 63,
25% Below 5 lakhs, 31, 13%
5 - 10 lakhs, 66, 26%
10 - 15 lakhs, 90, 36%
Interpretation:
A majority of 36% of the income bracket 10-15 lakhs was observed in the sample.
A comparative tie majority of around 25% has been observed in the income brackets 5-10lakhs
and Above 15 lakhs, followed by around 12% of the respondents falling in the income bracket
of below 5 lakhs.
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Consumer Purchase Behaviour and Preferences
Baked Goods Consumed
Baked Goods Frequency
biscuit 132
bread 130
brownie 141
cake 542
cookie 108
cracker 64
pastry 128
pie 44
tart 26
Baked Goods Consumed
tart 26
pie 44
pastry 128
cracker 64
cookie 108
cake 542
brownie 141
bread 130
biscuit 132
0 100 200 300 400 500 600
Interpretation:
Among our respondents, cake astronomically overshadows other baked goods as 542 of the
respondents chose it to be one the baked goods they consume. The other baked goods that are
popular in our sample population were brownie, biscuit, bread, and pastry, with tart being
the least popular choice.
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Type of Packaged Cake
Type of Packaged Cake Frequency
Cupcakes 112
Sponge cakes 110
Fruit cakes 127
Centre-filled cakes 63
Swiss-roll cakes 52
Marble cakes 61
Type of Packaged Cake
Marble cakes 61
Swiss-roll cakes 52
Centre-filled cakes 63
Fruit cakes 127
Sponge cakes 110
Cupcakes 112
0 20 40 60 80 100 120 140
Interpretations:
The maximum proportion of our respondents i.e., 127 prefer fruit cakes, followed by 112
respondents preferring cupcakes and 110 preferring sponge cakes.
This can also be explained in proportion to the true market preference, as these types of cakes
are bestsellers.
The subsequent cake type preference was obtained for other type of less popular cakes like
Swiss roll cakes and marble cakes.
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Preferred Flavour of Packaged Cake
Flavours of Packaged Cakes Frequency
Orange 57
Chocolate 155
Pineapple 108
Vanilla 102
Coffee 74
Red Velvet 67
Flavour Preference
Red Velvet 67
Coffee 74
Vanilla 102
Pineapple 108
Chocolate 155
Orange 57
0 20 40 60 80 100 120 140 160 180
Interpretations:
The maximum proportion of our respondents i.e., 155 respondents prefer chocolate flavour,
followed by 108 respondents preferring pineapple flavour.
The subsequent flavour preference was obtained for offbeat flavours like vanilla, coffee, red
velvet and orange, in that particular order.
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Brand Preference
Brands considered Frequency

Britannia 147
Parle 109
Sugarr and spice 84
Merwans Confectioners 2
Monginis 73
Modern 35
Mio Amore 102
Brand Preference
Mio Amore 102
Modern 35
Monginis 73
Merwans Confectioners 2
Sugarr and spice 84
Parle 109
Britannia 147
0 20 40 60 80 100 120 140 160
Interpretations:
The maximum proportion of our respondents i.e., 147 preferred Britannia, followed by 109
respondents preferring Parle.
This can also be explained in proportion to the true market preference, as these companies
occupy the major share of the packaged cake market. Consumer behaviour tends heavily
towards the brand name as a result of the effective marketing strategies of these companies.
The subsequent brand preference was obtained for other less popular brands like Monginis,
Modern, etc.
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Frequency of Buying
Frequency of Buying Count Percent
Once in a week 45 18.00%
Once in three months 60 24.00%
Several times a month 114 45.60%
Several times in a year 31 12.40%
Frequency of Buying
Once in a week
Once in three months
Several times a month
Several times in a year
Several times in a
year, 31, 12%
Once in a week, 45,
18%
Once in three months,

60, 24%
Several times a
month, 114, 46%
Interpretation:
In our sample population, majority (45.60%) of the respondents purchase packaged cakes
several times a month, and very few of them (12.40%) purchase packaged cakes as seldom as
several times a year. Thus, we can say that packaged cakes are quite the popular item amongst
our respondents.
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Preferred Source of Purchasing
Preferred source of purchasing Frequency
General stores 45
Cake shops 112
Supermarkets 77
Bakeries 52
E-commerce Sites 32
Preferred Source of Purchasing Packaged Cakes
E-commerce Sites 32
Bakeries 52
supermarkets 77
cake shops 112
general stores 45
0 20 40 60 80 100 120
Interpretation:
In our sample population, the majority of the respondents i.e., 112 of them, chose Cake Shops
to be their preferred place for buying packaged cakes, followed by Supermarkets, the least
preferred source being e-commerce sites.
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Mode of Advertisement
Mode of Advertisement Frequency Percent
Billboards 27 10.80%
Print media 24 9.60%
Social media 111 44.40%
Television 64 25.60%
Word of mouth 24 9.60%
Mode of Advertisement
Word of mouth, 24,
10% Billboards, 27, 11%
Television, 64, 26% Print media, 24, 9%
Billboards
Print media
Social media
Television
Word of mouth
Social media, 111, 44%
Interpretation:
Majority of the respondents (44.40%) view Social Media as the most popular channel for
advertising Packaged cakes, while Print Media and Word of Mouth seem to be the least
popular ones with a tie of 9.60%.
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Price of a pack of 140gm sliced cake
Price Frequency Percent
₹40 - ₹60 126 50.40%
₹61 - ₹80 62 24.80%
₹81 - ₹100 42 16.80%
Above ₹100 20 8.00%
Price of a pack of 140gm sliced cake

Above ₹100, 20, 8%
₹81 - ₹100, 42, 17% ₹40 - ₹60, 126, 50%
₹40 - ₹60
₹61 - ₹80
₹81 - ₹100
Above ₹100
₹61 - ₹80, 62, 25%
Interpretation:
In our sample population, the majority i.e., 50.40% (126) of the respondents would prefer to
buy a pack of 140gm sliced cake for ₹40 - ₹60, which was the lowest price bracket offered to
them. The respondents showed lesser and lesser interest as we increase our price bracket,
Above ₹100 being the least favoured one, as only 8.00% of the respondents chose the said
option.
So, the company would be advised to keep the price of the product they launch as low as
possible.
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Do you also purchase artisanal/unpackaged cakes?
Artisanal/unpackaged cakes Frequency Percent
No 94 37.60%
Yes 156 62.40%
Do you buy/consume artisanal/unpackaged cakes?
No, 94, 38%
Yes, 156, 62% No

Yes
Interpretation:
Out of our total sample of 250 respondents, majority of the respondents i.e., 62.40% (156
respondents) do buy unpackaged/artisanal cakes, whereas the rest (94 respondents) do not.
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When do you buy artisanal/unpackaged cakes?
Occasions Frequency
Festive occasions 92
Birthdays/anniversaries 129
Weekends/holidays 92
Work parties 64
Occasions when you buy artisanal/unpackaged cakes
Work parties 64
Weekends/holidays 92
Birthdays/anniversaries 129
Festive occasions 92
0 20 40 60 80 100 120 140
Interpretations:
From the above column chart, we observe the occasions on which the cakes are primarily
being ordered from our respondents as follows:
The maximum proportion of our respondents i.e., 129 respondents bought the cakes for
birthday parties/anniversaries.
Festive occasions or weekend holidays were next in line with 92 responses.
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Reasons for not buying artisanal/unpackaged cakes
Reasons Frequency
Too expensive 32
Not hygienic 44
Cheap ingredients 40
Not fresh 32
Reasons for not buying artisanal/unpackaged cakes
Not fresh 32
Cheap ingredients 40
Not hygienic 44
Too expensive 32
0 5 10 15 20 25 30 35 40 45 50
Interpretations:
From the above column chart, we observe the reasons for not buying unpackaged cakes from
our respondents are as follows:
The maximum proportion of our respondents i.e., 44 responses perceived unpackaged cakes
to be unhygienic, followed by the use of cheap ingredients by 40 responses.
Packaged cakes being too expensive and not fresh were also selected by a group of
respondents, indicating the areas to be worked on in order of preference of the consumer
perception.
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Factor Analysis and Results
Cronbach's Alpha (α)

Cronbach's alpha is the most common measure of internal consistency ("reliability"). It is most
commonly used when you have multiple Likert questions in a survey/ questionnaire that
form a scale and you wish to determine if the scale is reliable.
Cronbach’s alpha is a measure of internal consistency, that is, how closely related a set of items
are as a group. It is considered to be a measure of scale reliability. A “high” value for alpha
does not imply that the measure is unidimensional. Exploratory factor analysis is one method
of checking dimensionality. Technically speaking, Cronbach’s alpha is not a statistical test – it
is a coefficient of reliability (or consistency).
Cronbach’s alpha can be written as a function of the number of test items and the average
inter-correlation among the items. Below, for conceptual purposes, we show the formula for
the Cronbach’s alpha:
𝑵𝒄
𝜶=
𝒗 + (𝑵 − 𝟏)𝒄
Here N is equal to the number of items, c is the average inter-item covariance among the items
and v equals the average variance.
One can see from this formula that if you increase the number of items, you increase
Cronbach’s alpha. Additionally, if the average inter-item correlation is low, alpha will be low.
As the average inter-item correlation increases, Cronbach’s alpha increases as well (holding
the number of items constant).
A rule of thumb for interpreting alpha for dichotomous questions (i.e., questions with two
possible answers) or Likert scale questions is:
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In general, a score of more than 0.7 is usually okay. However, some authors suggest higher
values of 0.90 to 0.95.
The alpha coefficient for the 25 items is .915, suggesting that the items have relatively high
and good internal consistency. (Note that a reliability coefficient of .70 or higher is considered
“acceptable”).
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KMO and Bartlett’s Test
Interpretation:
This Output shows several very important parts of the output: the Kaiser-Meyer-Olkin
measure of sampling adequacy and Bartlett's test of sphericity. The KMO statistic varies
between 0 and 1. A value of 0 indicates that the sum of partial correlations is large relative to
the sum of correlations, indicating diffusion in the pattern of correlations (hence, factor
analysis is likely to be inappropriate). A value close to 1 indicates that patterns of
correlations are relatively compact and so factor analysis should yield distinct and reliable
factors.
Kaiser (1974) recommends accepting values greater than 0.5 as acceptable (values below this
should lead you to either collect more data or rethink which variables to include).
Furthermore, values between 0.5 and 0.7 are mediocre, values between 0.7 and 0.8 are good,
values between 0.8 and 0.9 are great and values above 0.9 are superb. For these data the
value is 0.877, which falls into the range of being great: so, we should be confident that
factor analysis is appropriate for these data.
Bartlett's measure tests the null hypothesis that the original correlation matrix is an identity
matrix. For factor analysis to work we need some relationships between variables and if the
R matrix were an identity matrix, then all correlation coefficients would be zero. Therefore,
we want this test to be significant (i.e., have a significance value less than 0.05). A significant
test tells us that the R-matrix is not an identity matrix; therefore, there are some relationships
between the variables we hope to include in the analysis. For these data, Bartlett's test is
highly significant (p< 0.001) taking 99% Level of Confidence, and therefore factor analysis is
appropriate. As p < α, we therefore reject the null hypothesis (H0) and accept the alternate
hypothesis (H1) that there may be statistically significant interrelationship between variable.
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Communalities Matrix
Interpretation:
Output shows the table of communalities before and after extraction. Principal Component
Analysis works on the initial assumption that all variance is common, therefore, before
extraction the communalities are all 1. The communalities in the column labelled Extraction
reflect the common variance in the data structure. So, for example, we can say that 62.5% of
the variance associated with shelf life is common, or shared variance. Another way to look at
these communalities is in terms of the proportion of variance explained by the underlying
factors. After extraction some of the factors are discarded and so some information is lost.
The amount of variance in each variable that can be explained by the retained factors is
represented by the communalities after extraction.
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Scree Plot
Interpretation:
The scree plot graphs the eigenvalue against the factor number. The first component will
always have the highest total variance and the last component will always have the least if
you look at Components 3 and 4, you will see an “elbow” joint. This is the marking point
where it’s perhaps not too beneficial to continue further component extraction. This shows
that after factor 3 the total variance accounts for smaller and smaller amounts.
Choosing the number of components to extract:
There are some conflicting definitions of the interpretation of the scree plot but some say to
take the number of components to the left of the “elbow”. A more subjective interpretation
of the scree plots suggests that any number of components between 1 and 3 would be
plausible and further corroborative evidence would be helpful.
Some criteria say that the total variance explained by all components should be between 70%
to 80% variance, which in this case would mean about five to seven components. The
authors of the book say that this may be untenable for social science research where
extracted factors usually explain only 50% to 60%.
“If there are less than 30 variables and communalities after extraction are greater than 0.7 or
if the sample size exceeds 250 and the average communality is greater than 0.6 then retain all
factors with Eigen values above 1 (Kaiser’s criterion)”.
From the scree plot, we can observe that only 3 factors out of 16 factors are to be extracted as
they have eigenvalue greater than or equal to 1.
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Total Variance based on Varimax Rotation
Interpretation:
SPSS Output lists the eigenvalues associated with each linear component (factor) before
extraction, after extraction and after rotation. Before extraction, SPSS has identified 15 linear
components within the data set (we know that there should be as many eigenvectors as there
are variables and so there will be as many factors as variables). The eigenvalues associated
with each factor represent the variance explained by that particular linear component and
SPSS also displays the eigenvalue in terms of the percentage of variance explained. It should
be clear that the first few factors explain relatively large amounts of variance (especially factor
1) whereas subsequent factors explain only small amounts of variance. SPSS then extracts all
factors with eigenvalues greater than 1, which leaves us with four factors. The eigenvalues
associated with these factors are again displayed (and the percentage of variance explained)
in the columns labelled Extraction Sums of Squared Loadings. The values in this part of the
table are the same as the values before extraction, except that the values for the discarded
factors are ignored (hence, the table is blank after the third factor). In the final part of the table
(labelled Rotation Sums of Squared Loadings), the eigenvalues of the factors after rotation
are displayed. Rotation has the effect of optimizing the factor structure and one
consequence for these data is that the relative importance of the four factors is equalized.
Varimax Rotation (Varimax is the most widely and commonly used rotation method used
in analysis).
Before rotation, factor 1 accounted for considerably more variance than the remaining two
44.160% compared to 15.886% and 8.225%. (Note: Eigenvalue of the first factor is 7.066, total
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variance is calculated as 7.066/16 % (i.e., 44.160%)). Since, there are total 16 components, each
with total variance = 1, however after extraction it accounts for only 28.510% of variance when
compared to 23.761% and 16.029% respectively.
Rotated Component Matrix
This table contains the rotated factor loadings, which represent both how the variables are
weighted for each factor but also the correlation between the variables and the factor.
Because these are correlations, possible values range from -1 to +1.
Note: We can suppress values less than 0.4 makes the output easier to read by removing the
clutter of low correlations that are probably not meaningful anyway.
The rotation makes it possible to find a solution that comes close to a simple structure and in
which the variables being tested have very high loadings on one factor and very low
loadings on the other factors. (compare it with the component matrix)
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Also, since we have used orthogonal rotation (Varimax) that assume factors are independent
or uncorrelated with each other. The benefit of doing an orthogonal rotation is that loadings
are simple correlations of items with factors and standardized solutions can estimate unique
contribution of each factor. The most common type of orthogonal rotation is Varimax
rotation.
The Rotated Factor Matrix table tells us what the factor loadings look like after rotation.
Kaiser Normalization is a method to obtain stability of solutions across samples. After
rotation, the loadings are rescaled back to the proper size. This means that equal weight is
given to all items when performing the rotation. The only drawback is if the communality is
low for a particular item, Kaiser Normalization will weight these items equally with items
with high communality. As such, Kaiser Normalization is preferred when communalities are
high across all items.
Note: the total variance explained by all the factors will remain same.
Component Transformation Matrix
Factor Transformation Matrix tells us how the Factor Matrix was rotated. In output, you will
see a matrix with four rows and four columns because we have four factors. The figure below
summarizes the steps we used to perform the transformation.
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Factors Extracted
The 16 attributes were reduced to 3 factors using factor analysis. These factors are free from
redundancies. Following are the factors extracted after performing factor analysis.
FACTOR 1: Marketing (Extrinsic Factor)

Variable Mean Factor Loading
shelf life 3.53 0.717
packaging 3.71 0.681
price 3.64 0.667
availability of different pack sizes 3.62 0.749
advertisement 3.54 0.791
brand name 3.75 0.81
Shelf Life, Packaging, Price, Availability of Different Pack Sizes, Advertisement, and
Brand Name have been grouped together in a single factor.
These attributes are related to the overall product/marketing mix. Out of these attributes,
Advertisement and Brand Name are the most important factors if a company wants to build
their brand image. The attribute Brand Name has the highest factor loading of 0.81 which
explains that this attribute affects this factor the most. All the six attributes within this factor
have positive loading therefore we can say that these attributes affect the consumer’s decision
significantly. Also, this factor is the first factor to be extracted, which implies that this has the
highest importance among customers.
FACTOR 2: Product Quality (Health Factor)

sugar content of the cake 3.28 0.677
nutritional value 3.16 0.863
healthy ingredients 3.16 0.889
low calorie count 3.13 0.895
variety/ type of the cake 3.38 0.841
flavour of the cake 3.46 0.647
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Sugar Content of the Cake, Nutritional Value, Healthy Ingredients, Low Calorie Count,
Variety/Type of the Cake, and Flavour of the Cake have been grouped together in a single
factor.
We find that the second factor comprises of six attributes. Out of these attributes, Low Calorie
Count has the highest factor loading of 0.895, which indicates that this attribute influences
this factor the most. Also, the mean rating of this attribute is good, i.e., 3.46, hence it is
observed that a low calorie count is an important driver in the purchase decision of the
customers. The next most influential attribute in terms of factor loading is Healthy
Ingredients.
FACTOR 3: Product Quality (Perception Factor)

aroma of the cake 3.38 0.806
texture of the cake 3.52 0.825
weight/ portion of the cake 3.54 0.661
egglessness 2.93 0.789
Aroma of the Cake, Texture of the Cake, Weight/Portion of the Cake, and Egglessness have
been grouped together in this factor.
The attribute Texture of the Cake has the highest factor loading of 0.825 which explains that
this attribute affects this factor the most. All of the attributes in this factor have mean values
well above 3, except the attribute Egglessness, which signifies that it is not a major
consideration for the customer while purchasing packaged cakes. The factor loading of the
attribute Aroma of the Cake is also a very influential attribute in this factor.
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SWOT Analysis
SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. By definition,

Strengths (S) and Weaknesses (W) are considered to be internal factors over which you have
some measure of control. Also, by definition, Opportunities (O) and Threats (T) are considered
to be external factors over which you have essentially no control. In a few words, if you know
your strengths and weaknesses and understand the opportunities and threats you have, then
you can do something about them.
It is a general tool designed to be used in the preliminary stages of decision-making and as a

precursor to strategic planning in various kinds of applications (Johnson et al., 1989; Bartol et
al., 1991). An understanding of all external factors (threats and opportunities) together with
an internal examination of strengths and weaknesses assists in forming a vision of the future.
SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic
position of the business and its environment. Its key purpose is to identify the strategies that
will create a firm specific business model that will best align an organization’s resources and
capabilities to the requirements of the environment in which the firm operates. In other words,
it is the foundation for evaluating the internal potential and limitations and the
probable/likely opportunities and threats from the external environment. It views all positive
and negative factors inside and outside the firm that affect the success. A consistent study of
the environment in which the firm operates helps in forecasting/predicting the changing
trends and also helps in including them in the decision-making process of the organization.
The primary objective of a SWOT analysis is to help organizations develop a full awareness
of all the factors involved in a decision. This method was created in the 1960s by Edmund P.
Learned, C. Roland Christensen, Kenneth Andrews and William D. Book in their book
"Business Policy, Text and Cases" (R.D. Irwin, 1969).
When should you use SWOT?
You could employ SWOT before you commit to any sort of company action, whether you're
exploring new initiatives, revamping internal policies, considering opportunities to pivot, or
altering a plan midway through its execution. Sometimes it's wise to perform a general SWOT
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analysis just to check on the current landscape in which your business finds itself. Performing
a SWOT analysis is also a great way to improve business operations.
Some small business owners make the mistake of thinking about these sorts of things
informally, but by taking the time to put together a formalized SWOT analysis, you can come
up with ways to better capitalize on your company's strengths and improve or eliminate
weaknesses.
"The collective knowledge removes blind spots that, if left undiscovered, could be detrimental
to our business or our relationship with our clients," Walsh said.
The aim of any SWOT analysis is to identify the key external and internal factors that are
important in achieving the objective. SWOT analysis groups key pieces of information into
two main categories:
1. Internal Factors
The first two letters in the acronym, S (strengths) and W (weaknesses), refer to internal factors,
which means the resources and experience readily available to you. Examples of areas
typically considered include:
• Financial resources (funding, sources of income, investment opportunities)
• Physical resources (location, facilities, equipment)
• Human resources (employees, volunteers, target audiences)
• Access to natural resources, trademarks, patents and copyrights
• Current processes (employee programs, department hierarchies, software

systems)
2. External factors
External forces influence and affect every company, organization and individual. Whether
these factors are connected directly or indirectly to an opportunity or threat, it is important to
take note of and document each one. External factors typically reference things you or your
company do not control, such as:
• Market trends (new products and technology, shifts in audience needs)
• Economic trends (local, national and international financial trends)
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• Funding (donations, legislature and other sources)
• Demographics
• Relationships with suppliers and partners
• Political, environmental and economic regulations
STRENGTHS
Strengths are the qualities that enable us to accomplish the organization’s mission. These are
the basis on which continued success can be made and continued/sustained. Strengths can be
either tangible or intangible. These are what you are well-versed in or what you have expertise
in, the traits and qualities your employees possess (individually and as a team) and the
distinct features that give your organization its consistency.
Strengths are the beneficial aspects of the organization or the capabilities of an organization,
which includes human competencies, process capabilities, financial resources, products and
services, customer goodwill and brand loyalty. Examples of organizational strengths are huge
financial resources, broad product line, no debt, committed employees, etc.
WEAKNESS
Weaknesses are the qualities that prevent us from accomplishing our mission and achieving
our full potential. These weaknesses deteriorate influences on the organizational success and
growth. Weaknesses are the factors which do not meet the standards we feel they should meet.
Weaknesses in an organization may be depreciating machinery, insufficient research and
development facilities, narrow product range, poor decision-making, etc.
Weaknesses are controllable. They must be minimized and eliminated. For instance - to
overcome obsolete machinery, new machinery can be purchased. Other examples of
organizational weaknesses are huge debts, high employee turnover, complex decision-
making process, narrow product range, large wastage of raw materials, etc.
OPPORTUNITIES
Opportunities are presented by the environment within which our organization operates.
These arise when an organization can take benefit of conditions in its environment to plan and
execute strategies that enable it to become more profitable. Organizations can gain
competitive advantage by making use of opportunities. Organization should be careful and
84 | P a g e
recognize the opportunities and grasp them whenever they arise. Selecting the targets that
will best serve the clients while getting desired results is a difficult task.
Opportunities may arise from market, competition, industry/ government and technology.
Increasing demand for telecommunications accompanied by deregulation is a great
opportunity for new firms to enter telecom sector and compete with existing firms for
revenue.
THREATS
Threats arise when conditions in external environment jeopardize the reliability and
profitability of the organization’s business. They compound the vulnerability when they relate
to the weaknesses. Threats are uncontrollable. When a threat comes, the stability and survival
can be at stake. Examples of threats are - unrest among employees, ever changing technology,
increasing competition leading to excess capacity, price wars, reducing industry profits, etc.
Advantages of SWOT Analysis
SWOT Analysis is instrumental in strategy formulation and selection. It is a strong tool, but it
involves a great subjective element. It is best when used as a guide, and not as a prescription.
Successful businesses build on their strengths, correct their weakness and protect against
internal weaknesses and external threats. They also keep a watch on their overall business
environment and recognize and exploit new opportunities faster than its competitors.
SWOT Analysis helps in strategic planning in following manner:
• It is a source of information for strategic planning.
• Builds organization’s strengths.
• Reverse its weaknesses.
• Maximize its response to opportunities.
• Overcome organization’s threats.
• It helps in identifying core competencies of the firm.
• It helps in setting of objectives for strategic planning.
• It helps in knowing past, present and future so that by using past and current data,
future plans can be chalked out.
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Limitations of SWOT Analysis
SWOT Analysis is not free from its limitations. It may cause organizations to view
circumstances as very simple because of which the organizations might overlook certain key
strategic contact which may occur. Moreover, categorizing aspects as strengths, weaknesses,
opportunities and threats might be very subjective as there is great degree of uncertainty in
market. SWOT Analysis does stress upon the significance of these four aspects, but it does not
tell how an organization can identify these aspects for itself.
There are certain limitations of SWOT Analysis which are not in control of management. These
include:
• Price increase
• Inputs/ raw materials
• Government legislation
• Economic environment
• Searching a new market for the product which is not having overseas market due to
import restrictions, etc.
Internal limitations may include-
• Insufficient research and development facilities
• Faulty products due to poor quality control
• Poor industrial relations
• Lack of skilled and efficient labour, etc.
SWOT Analysis for Aviyan Food Products

Strengths:
• The company has adopted latest technology trends to offer superior food products to
customers.
• The company has a team of skilled expertise and systematic work units assigned.
• The company has acquired a good name in the food processing and packaged foods
industry.
• The company has very high gross margins and ability to sell products online.
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• The company recognizes that it must have an accurate understanding of consumer
preferences and develop new products accordingly.
Weaknesses:
• Since the company is making a market entry into the world of bakery, an increase in
the operating costs is inevitable. The rising operating cost may lead the company to
hike its product prices, which may lead to a negative customer response.
• Since it is a lesser-known brand, if it is unable to make its presence felt across the
market, survival may become difficult in the long run.
• Several factors may lead to customer dissatisfaction, which would lead them to give
negative reviews and seriously harm the company’s reputation.
Opportunities:
• The company can take advantage of new developments in information technology to
improve sales and distribution systems.
• The company can step up efforts to manage quality at all stages, including the
procurement of raw materials, distribution and sales, as well as address related
environmental issues through such measures as expanding our food waste recycling
program.
• The company can take into account the growing demand of healthy and multigrain
products while developing their product line.
• The company can continue expansion of online sales and broaden its global
operations.
Threats:
• There are major well-established competitors in the packaged cakes segment who have
a loyal customer base and can offer similar products more quickly, and at more
affordable prices.
• The economic downturn can dilute the company and the start up costs may bankrupt
the company in short term.
• The existence of sluggish economic conditions overseas may also hamper business
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Questionnaire
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Limitations of the Study
The limitations of our study are as follows:
• As in any market research project, we base our assumptions on the sample taken. We
assume that the sample will be such that it is representative of the entire target
population. The sample may not be representative of the entire population.
• We assume that the competition for Aviyan Food Products in only the packaged cakes
segment. If we were to take an overview we will realize that there is even bigger
industry of cakes and other baked goods, which will be a competition to Aviyan Food
Products.
• We had surveys filled up only by the people who have some knowledge about cakes
and other baked goods. We have to realize that even the people who do not buy can
have an evaluation of the segment and they may be able to give an opinion on the
brand building strategies.
• Due to limitations of time and cost, we have taken a small sample, under
consideration. The larger the sample the better representation the sample gives of the
target population.
• This study is based on the prevailing customers. But the customer‘s perception may
change according to time, fashion, technology, development, etc.
• Data collection of exact data for the research is not possible as information provided
by the respondents may not be accurate.
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References
The following books and websites were referred during the project work:
• Operations Research - An introduction by Hamdy A. Taha

• Fundamental of Applied Statistics by S.C. Gupta and V.K. Kapoor
• Marketing Research - An Applied Orientation by Naresh K. Malhotra
• www.aviyanfoodproducts.in
• www.researchandmarkets.com
• www.expertmarketresearch.com
• www.bizencyclopedia.com
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Roll No.

General Perception Towards Packaged Cakes

Master of Operational Research

Aviyan Food Products

Title of Project: General Perception towards Packaged Cakes

Date of Commencement of the Project: 1 April 2022

Date of Completion of the Project: 6 May 2022

Name and Address of the Organization: Aviyan Food Products

Project Mentor: Ms. Anuradha Bhattarcharjee

Prof. (Dr.) Preeti Wanti Srivastava

1. INTRODUCTION TO OPERATIONAL RESEARCH................................................................. 8

1.1. Definitions of Operational Research............................................................................. 9

1.2. History of Operational Research................................................................................. 10

1.3. Methodology of Operational Research....................................................................... 12

1.4. Scope of Operational Research..................................................................................... 14

1.5. Characteristics of Operational Research Approach ................................................. 16

1.6. Limitations of Operational Research........................................................................... 17

1.7. Techniques of Operational Research........................................................................... 18

1.8. Operational Research in India...................................................................................... 23

2.1. Marketing Research ...................................................................................................... 25

2.2. Consumer Behaviour..................................................................................................... 29

2.3. Questionnaire Design.................................................................................................... 33

2.4. Sampling Design and Procedures............................................................................... 39

2.5. Factor Analysis .............................................................................................................. 44

3. INDUSTRY OVERVIEW .............................................................................................................. 50

3.1. Indian Packaged Cake Market .................................................................................... 51

4. COMPANY PROFILE ................................................................................................................... 52

5. RESEARCH DESIGN AND METHODS .................................................................................... 54

5.1. Research Problem .......................................................................................................... 54

5.2. Objective of The Study ................................................................................................. 54

5.4. Research Methodology ................................................................................................. 55

6. ANALYSIS AND RESULTS.......................................................................................................... 57

6.1. Demographics Analysis ............................................................................................... 57

6.2. Consumer Purchase Behaviour.................................................................................... 61

6.3. Factor Analysis and Results......................................................................................... 72

7.1. Swot Analysis for Aviyan Food Products……………….......................................... 86

9. LIMITATIONS OF THE STUDY………………………………….............................................. 94

Operational Research or Operations Research (OR) is a quantitative approach to decision

Employing techniques from other mathematical sciences, such as mathematical modelling,

• Analytic hierarchy process

DEFINITIONS OF OPERATIONAL RESEARCH

Some other definitions are as follows:

• Operational Research is the application of the methods of science to complex problems

HISTORY OF OPERATIONAL RESEARCH

METHODOLOGY OF OPERATIONAL RESEARCH

The OR approach to problem solving consists of the following six steps:

1. Formulation of the problem: It involves analysis of the physical system, setting up of

SCIENTIFIC METHOD IN OPERATIONAL RESEARCH

Judgment Phase: This phase includes:

a. Identification of the real-life problem.

SCOPE OF OPERATIONAL RESEARCH

1. Finance, budgeting and investment

5. Purchasing, procurement and exploration

CHARACTERISTICS OF OPERATIONAL RESEARCH APPROACH

i. Operational Research makes use of experience Interdisciplinary Team Approach. It is

LIMITATIONS OF OPERATIONAL RESEARCH

OR has certain limitations. These limitations are as follows:

TECHNIQUES OF OPERATIONAL RESEARCH

The objective probability is a probability for which there is a definite historical

2. Decision theory. The basic elements in a decision theory are:

− How much to order at one time?

− When to order this quantity?

OPERATIONAL RESEARCH IN INDIA

OPERATIONAL RESEARCH EDUCATION IN INDIA