A STUDY ON CUSTOMER PREFERECE TOWARDS

HERITAGE PRODUCTS
INTRODUCTION

Consumers normally implement preferences when they go for comparing different alternatives
and choices. Preference based on scientific evaluation is always a reasonable one. Real-life
marketing primarily revolves around the application of a great deal of common-sense dealing
with a limited number of factors, in an environment of flawed information and limited resources
complicated by vagueness. Use of traditional marketing techniques, in these circumstances, is
inevitably partial and unequal. Now a day the role of marketing has becoming an essential part
for any product. Marketing plays the pivotal role after establishing target specifications, concept
generation, and concept selection through concept screening matrix and concept scoring matrix,
and finally testing of concept selection. Marketing has been comprehensively classified into two
categories such as product selling and concept selling. The marketing of any product might be
reached only because of concept selling. The role of the concept selling is to sell the concept to
the customers after getting their feedbacks through face to face interactions, Electronic mails,
panel discussions, interaction with extreme users, end users, lead users, written survey and word
of mouth advertising. Above described methods might be congruous and helpful for concept
generation too. It will help the marketers to market the product more gullible, notable and
plausible.

While consumer preference is an indicator of consumer demand, it’s important to note that
consumer choices are not always determined by preference alone. Choices are often limited by a
consumer’s income or budget, compared to the cost of the item, which is why so few people
drive luxury cars or fly first-class.

Consumer preferences are subjective individual tastes, likes and dislikes, and predispositions.
When you're building or marketing a product to your target consumers, you need to consider
their personal preferences to get the best possible results.
OBJECTIVES

 To study the customer preferences in choosing Heritage products.

 To study the factors that is affecting the choice of customers in choosing a retail store.
 To study the factors that retain the customers who visit Heritage Foods.

NEED FOR THE STUDY

Now day’s retail stores facing more competition in retailing business. Good store design
increase the visiting of more customers in to the store and increase the store goodwill, and price
also plays major factor to use the customer giving preference and selection of the store. And as
industry research has shown, there is much need to know the customer expectations, customer
preferences and their store choice’s(features) and we will find out solutions for designing
effective store which will getting more customers and getting more profits.

SCOPE OF THE STUDY

The research is applicable in the area of customer decision making process for purchasing
of products of Heritage. The scope of research also helps in understanding the preferences of the
customers. It would help Heritage in designing their marketing promoting sales.

TYPE OF STUDY: Descriptive method

This research is completely based on the description of the factors that lead to the
customer decision making process. It is basically valued on the various parameters which include
personal details of customers, their income –level, satisfaction level.
Here the need is to find which factor describes the consumer decision making process most
effectively.

SOURCES OF DATA COLLECTION:

The sources of data include both Primary and Secondary data.
Primary data is collected with specific objective, especially to address the research
problem. The data is gathered by distributing a questionnaire to the customers who visit Heritage
and through personal interview.
 Secondary data includes books, journals, magazines, newsletters of the Heritage, and
internet.

SAMPLING SIZE:
The sample size taken for the study at Heritage is 100.

SAMPLING PROCEDURE:
To obtain the representative sample, a non probability sample can be drawn. In this study
the method of selecting samples is random.

TOOLS:
The tools used for analyzing data are rating method; graphs, pie charts etc. Questionnaire
is distributed to the individual respondents and special care has been taken to make him/her feel
comfortable so that, he/she could answer all the questions. This method is followed to get
unbiased answers.

TECHNIQUES OF ANALYSIS:
The data collected from the customer are transcript to the worksheet in the form of tally
bars and analyzed by statistical tools by drawing tables and graphs, inferences were drawn on a
marketing concept and conversation. Based on the marketing concepts findings of the research
were driven and recommendations are made.
LIMITATIONS OF THE STUDY:

It is not possible for any market study to make it accurate due to many hurdles in the collection
and computation of data. Some limitations of the study are listed below

 The sampling frame to conduct the study has been restricted to Heritage, jubilee Hills,
Hyderabad – 500 033
 Respondents show reluctance towards giving correct information.
 Findings of the study are based on the assumption that respondents have disclosed in the
questionnaire.
 Time was a major constraint.
 The sample was limited to only customers who have made a purchase of Heritage
products.
LITERATURE REVIEW:

1. Brian Thomas (2002) has mentioned that brand awareness plays an important role in
consumer preferences.
2. Mohanty and Bhasker (2005) have proposed a different methodology to the consumers
based on the decision support tool for the internet shopping. This tool generally
comprises of multiple number of attributes of the products which are generally
conflicting, ambiguous and non-commensurable in nature. They have mentioned in the
following example, the data such as mileage, comfort, maintenance cost, re sale value
and cost seems to be imprecise in nature. Here fuzzy logic has been used to solve the
complex issue.

3. ArjunChowdhri (2006) has remarked that brand commitment is an important

determinant in buying behavior for consumers.

4. David B. Eastwood et al(1987)have examined the consumer behavior based on the

purchase regularity, satisfaction, origin and willingness to pay for selected local versus
non-Tennessee grown fresh produce.

5. Ali Nasr Esfahair(2012) has analyzed the psychological factors on consumer’s buying
behavior. have stimulated and expanded on the substantial discussion on the preference
measurement for complex attributes products which are imprecise in nature and vague to
predict which is suitable and where to use which is based on paired comparison-based
preference measurement. To perceive and predict the decision, preference measurement
approaches are needed that accommodate large number of attributes without
overburdening the respondents. This study provides empirical support for the predictive
validity and managerial usefulness of PCPM in understanding preferences for complex
products.

6. Rachel Dardis and HoracioSoberon-Ferrer(1994) have investigated the rapport

 between automobile attributes and household characteristics to consumer preferences for
cars. The analysis was confined to households that purchased new cars in 1986 and
employed two-stage probit analysis. Results indicated that the coefficients of five
automobile quality attributes were statistically significant while the coefficients of most
household characteristics were not significant. Households were interested in more fuel
efficient and heavier cars as well as cars with lower depreciation rates and a lower
frequency of repair are more likely to buy Japanese than non-Japanese cars.

7. Gary A. Knight (1984) has compared the consumer preferences for goods made abroad
and made in the home country by both home country and foreign firms. Indeed he has
suggested that the country of manufacture and product quality strongly influence
consumer decision making in globally available product categories.

8. Timothy J. Ross(2010) has given the concepts of fuzzification and defuzzification to

identify the key issues in the perfect way by giving the due weightage to the parameters.

9. VenkatoRao R (2007) has demonstrated the details of graph theory and the matrix
approach as decision making method in the manufacturing environment. The linguistic
terms with their corresponding crisp scores were given. Instead of assigning arbitrary
values for various attributes, this fuzzy method reflects the exact linguistic descriptions in
terms of crisp scores. Hence, it gave better approximation of linguistic descriptions that
were widely used.

10. Zeenat Ismail et al(2012) have compared a preferred solution between global brand and
local brand. It was designed to find out the buying behavior patterns. It was suggested
that consumer might evaluates products based on information uses which were extrinsic
and intrinsic. The results revealed that most important factors that influence a consumer’s
final decision are the price and quality of the product.
Conceptual frame work
COMPANY PROFILE

Heritage Foods

Heritage Foods Limited

Type Public limited company (BSE)

Industry Dairy and Agribusiness

Founded 1992

Founder Nara Chandrababu Naidu

Headquarters Hyderabad, India

Key people Nara Brahmani (Executive

Director)
Sambasiva Rao (President)

Revenue US$500 million (in 2018 -

19)

Owner Nara family

Number of 3000+
employees

Website www.heritagefoods.in
Heritage Foods Limited (commonly known as Heritage Foods) is one of the largest private
sector dairy enterprises in Southern India.

History

The Heritage Group was founded in 1992 by Telugu Desam Party Chief and former Chief
Minister of Andhra Pradesh Shri Nara Chandrababu Naidu, with three-business divisions viz.,
Dairy, Retail and Agri under its flagship Company Heritage Foods Limited (HFL), one
infrastructure subsidiary - Heritage Infra Developers Limited and other associate Companies
viz., Heritage Finlease Limited, Heritage International Limited and Heritage Agro Merine
Private Limited. The annual turnover has crossed $200 million USD during FY 2008'09.[1][2]

Heritage’s milk products have market presence in Telangana, Andhra Pradesh, Karnataka,
Kerala, Tamil Nadu ,Maharashtra,Delhi, Rajasthan and Punjab its retail stores across Bangalore,
Chennai,Hyderabad and Visakhapatnam. Integrated agri operations are in Chittoor and Medak
Districts and these are backbone to retail operations.

In the year 1994, HFL went to Public Issue to raise resources, which was oversubscribed 54
times and its shares are listed on BSE (Stock Code: 519552) and NSE (Stock Code:
HERITGFOOD).[3]

Heritage Foods has its headquarters in Hyderabad, Telangana, India.

The Dairy Brand - Heritage

Heritage by choosing Chittoor district of Andhra Pradesh as its primary procurement base of
milk, had taken full advantage of the large, high yielding and cross-bred cow population found in
the area.

Today Heritage has network in the states of Telangana, Andhra Pradesh, Karnataka, Tamil
Nadu, Maharashtra and Delhi for procurement and distribution of quality milk and milk
products. Heritage products are also distributed in the state of Kerala. Heritage has drawn plans
to be a pan-India player in the dairy.

Products

A pouch of Heritage Toned Milk

Heritage's dairy range of products among others include milk, curd, ice
cream, buttermilk, flavored milk, dairy whitener, skim milk powder. The Fresh range of products
include 177 sku's of fresh fruits and vegetables, 150 sku's of in house bakery products and the
private labels Farmers' Pride like cereals, pulses, staples, and spices.

Controversy

Motaparti Siva Rama Vara Prasad, who was a director of the company and was also Chairperson
of a number of committees like Audit, Remuneration and Risk Management. On 3 April 2016,
his name featured in the list of high-profile names released in the Panama Papers, a set of 11.5
million confidential documents created by the Panamanian corporate service provider Mossack
Fonseca.

When questioned by journalists whether his holdings were the proceeds of political corruption
or tax evasion, he replied that he was an international businessman with companies in three
continents established over the last 30 years. But the article also highlighted his ignorance on the
fact that he didn't know who his agents were when setting up these off-shore Shell companies or
why he decided to use nominees to hide his name from the true ownership.

Since he is a very close confidant of N. Chandrababu Naidu and the distinct possibilities of
linking these companies to money laundered through corruption in politics, he was asked to
resign from his post as Director to try and reduce the exposure of the Chief Minister and
the Panama Papers .

Heritage Foods Limited

The Heritage Foods Limited was founded by Mr. Nara Chandrababu Naidu in the year 1992,
which is one of the fastest growing Public Listed Companies in India, with two business
divisions - Dairy and Renewable Energy. The annual turnover of Heritage Foods crossed INR
2482 crores in the financial year 2018-19.

Currently, Heritage's milk and milk products have a market presence in Andhra Pradesh,
Telangana, Karnataka, Kerala, Tamil Nadu, Maharastra, Odisha, NCR Delhi, Haryana,
Rajasthan, Punjab, Uttarakhand, Himachal Pradesh, Uttar Pradesh & Madhya Pradesh.

In the year 1994, HFL went public and was oversubscribed 54 times. HFL shares are listed on
BSE (Stock Code: 519552) and NSE (Stock Code: HERITGFOOD).
Vision

VISION

Delighting every home with Fresh & Healthy products and empowering the Farmer

Mission

 To be a nationally recognized brand for Healthy and Fresh products with a revenue of
INR 6000 Crore by 2024

 To anticipate, understand and respond to our Customers' needs by creating high-quality

products and making them available through innovative and convenient channels

 To embrace the right technology to delight our Customers

 Advocating the balancing of economic, social and environmental aspects to create a

better tomorrow

 Empowering the farmer community through our unique 'Relationship Farming' Model

 Be the Employer of Choice by nurturing entrepreneurship and promoting empowerment,

alongside transparency

Mrs. Bhuvaneswari NaraVice-Chairperson & Managing Director

A B.A. Graduate and a Director for several companies. Is a dynamic leader who has extensive
experience in business and has been successfully steering Heritage Foods Limited towards
growth and better prospects. Joined Heritage in 1994 as whole-time Director and is now serving
as Vice Chairperson & Managing Director. Is guiding and monitoring the overall workflow of
the organization.
Mrs. Brahmani NaraExecutive Director

Holds a Master's in Business Administration from Stanford University, Bachelor’s in Electrical

Engineering from Santa Clara University, California, USA and Communication Engineering
from Chaitanya Bharathi Institute of Technology, Hyderabad, India. Investment Associate in
Vertex Venture Management Pvt Ltd between 2009-2011 in Singapore. Joined Heritage in 2011
as Vice President Business Development and is now serving as Executive Director. Takes care of
such vital functions as design, development and implementation of strategic plans for the
organization in a cost-effective and time-efficient manner.

Dr. M. Sambasiva RaoPresident,

Post Graduate and Doctorate in Zoology. Served the state and central governments for about two
decades as a member of the Indian Administrative Services (IAS). Dr Rao was the Joint
Secretary in the Department of Commerce under the Ministry of Commerce and Industry,
Government of India.

CA A. Prabhakara NaiduVice President - Finance & Accounts,

Fellow Member of the Institute of Chartered Accountants of India and graduated from Sri
Venkateswara University with a university rank in science. Has 26 years of experience in finance
and accounts. Has been associated with the Heritage group since its inception.

Mr. Umakanta BarikCompany Secretary,

Has a Master’s in Economics, LLB, FCS, and LIII. Is a Fellow Member of the Institute of
Company Secretaries of India, New Delhi and a Licentiate from Insurance Institute of India,
Mumbai. Has over 19 years of experience in the domains of Secretarial, Legal, Insurance &
Intellectual Property Rights.

Mr. J. Samba MurthyHead - Dairy Division,

Holds an MBA in Marketing and a Bachelor's in Science. Is the Senior Vice President at
Heritage and has been associated with the Company since 2007. Has worked previously in
APDDCF Limited, Visakha Dairy NDDB, and Reliance in various positions in the field of Sales
& Marketing.

Heritage Renewable Energy

We at Heritage have recognized our responsibilities to protect the environment. With this, we are
dedicated to expand our green footprint and thus we have started our clean energy journey by
entering into renewable energy projects for captive consumption.
PRODUCT PROFILE

Heritage Milk a naturally nutritive, rich, fresh, wholesome food par excellence which
self-contained protective food characteristic. Hygienically procured, pasteurized and poly packed
under PEA standards, Heritage milk is a complete food for any age be it children Teenages,
adults, expecting mother as older citizens, rich with just about all essential nutrients.
Heritage Milk is full of strength building calcium and phosphorus,. And the essential
life giving vitamins. The milk products of heritage dairy.
The milk products of dairy are as follows;
 Ghee
 Skimmed milk powder
 Butter milk
 Curd
 Toned milk
 Double toned milk
 Whole milk

Marketing of milk and it’s by products:

One of the most crucial links in the marketing of milk and products is that it is highly
perishable commodity. It cannot be stored in its original state for more than four hours and
therefore drilling and packing is required for increasing its keeping quality. Further it is chemical
saving gat solids and also essentially proteins minerals vitamins and water ans its main
ingredients; therefore it can be suitably converted into butter, ghee and milk powder and
reconverted into milk, when required. Thus these things will be kept in main while planning
effective marketing linkage.

Milk:
Heritage Milk…naturally nutritive, rich, fresh, wholesome food par excellence with self
contained protective food characteristics. Hygienically procured, pasteurized and poly packed
under PFA standards, Heritage Milk is a complete food for any age, be it children, teenagers,
adults, expecting mothers or older citizens. Rich with just about all essential nutrients… Heritage
Milk is full with strength building protein, energy giving carbohydrates &fats, bone & teeth
building calcium & phosphorus and the essential life giving vitamins.

Curd:
Aroma, freshness ‘n’ purity kept intact!!
Robotics natural Dairy Food Preparation from double toned milk:
A new generation health promoting food with improved nutritional benefits due to the presence
of viable eitidobacterium tactics & lactobacillus acidophilus.

Ghee:
Agmark special grade Heritage Ghee is pure clarified fat made from fresh cream, with no
colors or preservatives, tantalizing the human senses with its envigoring taste, fragrant aroma,
rich texture. And vitamins A, D, E and K as bonus

Butter Milk:
Aroma, freshness ‘n’ purity kept intact!!
High quality butter milk with natural taste.

Flavored Milk:
Nutritional Information
200ml Contains Approx
Fat 3.0g
Proteins 6.6g
Carbohydrates 26.0g
Minerals 1.5g
Energy 157k.cal

Skim milk powder:

Heritage Skim milk Powder is a low fat & calorie, high protein spray dried milk powder
made from fresh skimmed milk that instantly dissolves in lukewarm water, And tastes just like
milk!! With clean, rich, sweet and very pleasant natural milk flavor, it flows fine and smooth and
is homogeneous in texture.

Variety and composition

Variety Pack size
Whole milk 500ml
Homogenized Toned Milk 200ml,500ml,1000k
Standard milk 500ml
Double Toned Milk 500ml
Golden cow milk 500ml
Each 500ml of Heritage Milk Contains
Fat -- 3.0%
SNF -- 8.5%

Each 200ml of Heritage Milk Contains

Fat -- 7.5gms
Lactose -- 12.0gms
Proteins -- 8.25gms
Calcium -- 312.5mg
Energy -- 148.5k.cal
QUESTIONNAIRE

1. Name :
2. Age:
a) 15-20
b) 21-30
c) 31-40
d) 41 and above
3. Gender:
a) Male
b) Female
c) Trans gender
4. Occupancy
a) Government employee
b) Private employee
c) Business person
d) labour

5. No. of Family members:

a) 2 Persons
b) 3 Persons
c) 4 Persons
d) Above 4 Persons

6. Which Milk do you refer:

a. Vendor’s milk
b. Packed milk.

7. Which size of pack do you refer:

a. 500ml
b. 200ml
 c. 1litre
d. Above 2ltrs

8. Do you know Heritage milk :

a. Yes
b. No

9. Which brand you would like to use regular:

a. Heritage
b. Sangam
c. Tirumala
d. vijaya
e. Dodla

10. Since how long have you been using Heritage milk:
a. Before 6 months
b. 6 months to1year
c. 1 to 2years
d. More than 2years

11. What are the factors that influenced you to purchase Heritage milk :
a. Quality
b. Packing looks/Styling
c. Price
d. Advertisement

12. Which media do you prepare will increase the sales of Heritage milk :
a. Hoardings
b. Wall paintings
c. Friends
13. What is your opinion of compared to other brands of milk in terms of Brand name :
a. Thickness
b. brand image
c. price
d. Availability

14. Satisfaction level of Heritage milk:

a. Highly satisfied
b. Satisfaction
c. Neither satisfied nor dissatisfied
d. Highly Dissatisfied

15. Opinion on Quality of Heritage milk:

a. Excellent
b. Good
c. Average
d. Not Bad

16. Which Media do you prefer as a best sales promotion:

a. Television
b. Radio Jingles
c. News Papers
d. Hoardings

17. Opinion on pricing of Heritage Milk:

a. Very High
b. High
c. Average
d. Low
 18. Do you know products are there in Heritage:
a. Yes
b. No

19. Have you aware of any other products offering Heritage:

a. Paneer
b. Ghee
c. Butter
d. Badam Milk
e. Doodh peda
20. Are you aware of tetra pak milk packets?
a. Yes
b. No

Any Suggestions Please Specify:

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