“BRAND: SANCHI”: EVIDENCE from BHOPAL, MADHYA PRADESH (INDIA) Kumar Siddhartha Research Scholar-Management, Barkatullah University, Bhopal, Madhya Pradesh, India
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G.J.C.M.P.,Vol.7(2):29-40 (March-April, 2018) ISSN:2319–7285 CUSTOMER PATRONAGE TOWARDS “BRAND: SANCHI”: EVIDENCE FROM BHOPAL, MADHYA PRADESH (INDIA) Kumar Siddhartha Research Scholar-Management, Barkatullah University, Bhopal, Madhya Pradesh, India Abstract The marketing strategies are designed or tailored sometimes to bring up customer consumption. To earn the consumers’ patronage, in turn, and attempt to surpass the value additions made by competition. The retained consumer’s brand association ensures growth of the firm, for the reason the companies put optimized resources to position or reposition their brand or the specialized product in the market. Milk/ product brands like Sanchi, Amul, Saurabh, Khajuraho and Patanjali in Madhya Pradesh have been indulged into controlling orientation of consumers under the influence of various psycho- demographic factors that govern their consumption cycle. The study with a convenience sample of 185 customers has aimed to identify these factors for brand Sanchi in Bhopal to check with consumers about their brand loyalty, perception and patronage towards Sanchi. Result show that despite loyalty of customers towards Sanchi, they may switch to another brand, if made available for complete satisfaction after consumption. Key words: Brand- perception, loyalty, Sanchi, psycho-demographic/ convenience sampling Introduction To formulate marketing strategy we need to understand market well. Urban market has its many barriers and opportunities, therefore it become essential for the marketer to know the each and every aspect before they place and exhausting their products in the market. The consumer buying behavior of the peoples living in the urban areas is entirely different from the buying behavior of consumers living in the rural areas. The buying behavior of the consumers is influenced by the psychological determinants like taste and preference of the consumers, perception of the family followed by their experience and budget. Based on this targets are redefined with the current positioning of each product vis-à-vis competition. Other factors like distribution, price and optimization are evaluated sincerely towards gaining competitive advantages. Consumer behavior helps the marketers in understanding the psychology and orientation of the consumers with respect to a particular brand. It has always been, one of the interest areas of customer’s priority which every marketer needs to understand before they decide to win the market. A report by Mc Kinsey &company (2007), India will be the fifth largest consumer market in the world by 2025.Creating a brand loyalty has now become one of the biggest challenge for the FMCG companies, due to the huge competition both from organized and unorganized market. In the recent past the demographic of the customers has shifted. This study is basically emphasizing on the factors influencing the buying behavior for milk /products of Sanchi brand in Bhopal. Table.01. Top Five Dairy Brands in India: 2018: 1 Amul Gujarat 2 Mother Dairy New Delhi 3 Kwality Limited New Delhi 4 Orissa State Cooperative Milk Producer Federation (OMFED) Orissa 5 A.P. Dairy Development Cooperative Federation Ltd. Andhra Pradesh (APDDCF) 6 Karnataka Cooperative Milk Federation (KMF) Kerala 7 Dynamix Dairy Maharashtra 8 AAVIN Tamil Nadu 9 MILMA Kerala 10 Dudhsagar Dairy Gujarat Source: ww.trendingtopmost.com>foods.best brands; Mackenzie, March 18, 2018(www.trendrr.net) DOI:10.24105/gjcmp.7.2.1806 29 Exhibit.01. Market share: Major Indian brands: Milk Products Cheese, 1% Share % Paneer, 1% Butter, 3% Curd, 1% Flavored Milk, 1% Ice Cream, 4% Ghee, 8% Milk Powder, 8% Liquid Milk, 73% Source: NDDB, Ministry of Animal Husbandry (Market Wrap- ICICI Securities, week Jan26-Jan30, 2015) Since independence the dairy industry in India has been following sturdy path of progression Indian Dairy Market Report & Forecasts 2012-17 by research agency IMARC, strong growth in both rural and urban demand will boost market of milk products in India, expected to cross over Rs. 981,586 crore by 2017(approx 5% of GDP).A report estimates that Indian Dairy market will grow at a CAGR of 15% by 2020 due to changing consumption habit, increasing consumption, large pool of cattle and rising income level. The Indian dairy industry has been witnessing rapid growth. The liberalized economy provides more opportunities for MNCs and foreign investors to realize the full potential of dairy industry. The main aim of the Indian dairy industry is only to enhance milk production and technologically upgrade milk processing. During the last three decades the growth of the dairy sector has also been impressive at 4% per annum and the country has emerged as the largest producer of milk considering the fact that dairying in India is largely a subsistence activity. Annual world trade in milk products amounts to 33 million tones (US$ 10 billion). 6 to 7 per cent of the world milk production is traded internationally. The bulk of the world dairy trade is in cheese, butter and powders. A growing shift towards cheese is expected in the near future due to changed taste & preference and calorie consciousness. As of today, India is the largest milk producing country in the world. Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu are the milk surplus states in India. The manufacturing of milk products is concentrated in these milk surplus states. India, the world’s largest producer of dairy products by volume, has been accounting for more than 13 per cent of world’s total milk production, and has the world’s largest dairy herd. In order to maintain the development of its dairy industry, four focus needs to be considered : (1) to reduce cost of production through increasing productivity and management of animals, improving animal health care and breeding facilities (2) to further develop proper dairy production, processing and marketing infrastructure in order to meet international quality standards. (3) focusing on buffalo milk based specialty products, e.g. Mozzarella cheese, in order to meet the needs of the target consumers (Chawla, 2009). The government and the National Dairy Development Board have outlined a National Dairy Plan (NDP) in 2010 which proposed to nearly double India’s milk production by 2020, endeavoring to enhance the country’s milk productivity, improving access to quality feeds and farmer access to the organised market. These goals would be achieved through activities focusing on growing the network of milk collection facilities and increasing co- operative membership and throughout India (NDDB, 2015). Consumer’s behavior, choice & preferences and attitudes towards consumption of dairy products differ substantially across countries. Consumer perceptions of dairy products quality involve much more than sensory attributes. There are four dimensions that consumers consider when forming perceptions about dairy product quality: (1) health-related (2) hedonic (e.g. sensory attributes such as taste or smell), (3) process related (e.g. production processes such as organic, animal welfare or genetic modification) (4) convenience-related (Grunert et al. 2000). Statement of Problem To advice brand “Sanchi” why and how customers perceive and select a specific milk in Bhopal, Madhya Pradesh, in order to improve its competitive advantages”. DOI:10.24105/gjcmp.7.2.1806 30 Objective 1. To find out the factors/ determinants influencing the purchase of milk & milk products in Bhopal in reference to customer patronage. 2. To study the impact of factors/determinants on forming buying perception. Literature Review (i) Literature on consumer consumption: Fawi and Abdalla (2013) conducted a research on the preferences and consumption pattern of milk and factors affecting consumers’ buying decision. Authors found quality as a main factor affecting buying decision. Fresh milk is highly preferred by the consumers. Study concludes that producers of milk and the processors should implement modern marketing concepts that focus on the consumers needs to increase sales. In a study Nayak (2013) discussed dealer-customer interface in selected dairy industries in two major cities of viz Bhubaneswar (Odisha) and Vishakhapatnam (Andhra Pradesh). Study was done with a sample of 400 consumers of milk products and its 200 dealers. The study revealed that consumer behavior encompasses a vast area including buying process, shopping behaviors, purchasing patterns, consumer motivation, preferences, etc. Further, Boniface and Umberger (2012) studied perceptions and consumption of various dairy products. The study investigates the drivers of increasing dairy demand by examining the factors influencing Malaysian consumers. The results indicate that factors e.g. age and ethnicities as well as other attitudinal factors (demographic variables) significantly influence consumer’s increasing consumption of dairy products. Sharma (2011) attempted to economically analyze the food consumption pattern in both rural and urban India and estimated the elasticity of demand on food expenditure. His analysis revealed that the increase in monthly per capita expenditure has led to greater changes in the consumption of beverages, vegetables, egg, fish, meat and edible oil. Author found the estimated expenditure elasticity of demand positive for all food items. The elasticity was less than one (< 1) for all the food items in urban areas, where as the expenditure elasticity was more than one (>1) for edible oil, egg fish group,