Cibb Report Biscuit

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Transcript of Cibb Report Biscuit

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    A Study on

    Consumers Buying Behavior Pattern

    Of Biscuits

    By:

    Pratik Jagtap: 37

    Amrit Goenka: 71

    Prashant Satavi 98

    Amar Naik: 101

    Krishna Iyer: 117

    2013-2014

    SIES COLLEGE OF MANAGEMENT STUDIES.

    Table of content

    Consumer Buying Behavior Pattern of Biscuits Page 1

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    Introduction 3

    Executive summary

    Need and importance to study

    Objective of study

    Scope and limitations

    Chapter: 1 Literature Review 7

    Biscuit industry in India

    A glance at industry

    Brief introduction

    Chapter: 2 Research Methodologies 14

    Chapter: 3 Survey Analyses 17

    Chapter: 4 Overall Analyses 26

    Findings and Suggestions

    Conclusion

    Bibliography

    Appendix 29

    EXECUTIVE SUMMARY

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    The report is on the consumer buying behavior pattern of biscuits in India.

    The report covers starts the need to study about this subject, the objective of the study

    and limitations of the study followed by an overview of the biscuit industry in India.

    Secondary research and primary research was conducted among a pool of people for thesurvey, following which the analysis was made.

    The methodology used to conduct the survey is explained, which includes the various

    parameters that were used in the questionnaire to bring out specific behavior patterns.

    A detailed analysis of the survey is then made with the help of the primary research.

    The report ends with a detailed summary of the entire study with the relevant findings

    NEED AND IMPORTANCE OF STUDY

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    Biscuit Industry is one of the largest among all the food industries and has a

    turnover of around Rs.3000 cores. India is known to be the second largest

    manufacturer of biscuits, the first being USA. Bread and biscuits are the major

    part of the bakery industry and covers around 80 percent of the total bakery

    products in India. Biscuits stands at a higher value and production level than

    bread.

    From a marketing perspective it is very important to know the behavior of

    consumer and their buying habits to learn marketing activities related to biscuit

    industry.

    In biscuit market, strong brand equity and a wide distribution network are vital in

    attracting customers.

    Brand equities are built over a period of time by technological innovations,

    consistent high quality, aggressive advertisement and marketing.

    Availability of the products is another crucial success factor, as products are of

    small value, frequently purchased daily use items.

    A deep insight of consumer brand loyalty and satisfaction can help marketers

    retain the existing customers and entice new ones. In this backdrop, this study is

    undertaken to examine the consumers' brand awareness, loyalty, and satisfaction

    towards biscuit brands. The factors influencing brand selection and brand

    switching are also assessed.

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    OBJECTIVE OF STUDY

    The main objective of this study is to examine the consumers' buying habits and brand loyalty

    towards biscuit products. The following are the specific objectives of the study.

    a. To identify demographic segmentation of buyers.

    b. To identify the product attributes that influences the purchasing process.

    c. To assess the brand loyalty and switching behavior of consumers with respect to various

    levels changes in price, taste, quality.

    d. To understand buying habits of consumers.

    e. To evaluate the satisfaction level of consumers with regard to their present biscuit brand.

    f. To assess the market share of different biscuit brands in the market segment taken up forinvestigation.

    g. To offer suggestions to FMCG companies.

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    SCOPE AND LIMITATIONS OF THE STUDY

    SCOPE

    The study is conducted towards customers at Cities of Thane District.

    The present study intends to examine below towards biscuit brand

    Demographic segmentation

    Product attributes that influence the purchasing process

    Brand Loyalty & switching behaviour

    Buying habits

    Satisfaction level with respect to present brand

    Market share

    LIMITATIONS

    The study has the following constraints

    The sample sizes are restricted to 100 customers, due to time constraints.

    100 customers sample cannot be generalized to entire universe.

    There may be a chance of individual's experience dominating the interpretation of the

    data.

    The study is conducted considering the prevailing conditions which are subjected to

    change in future.

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    Chapter: 1

    Biscuit Industry in India An Overview

    Biscuit industry in India in the organized sector produces around 60% of the total

    production, the balance 40% being contributed by the unorganized bakeries. Theindustry consists of two large scale manufacturers, around 50 medium scale brands and

    small scale units ranging up to 2500 units in the country, as at 2000-01. The unorganized

    sector is estimated to have approximately 30,000 small & tiny bakeries across thecountry.

    The annual turnover of the organized sector of the biscuit manufacturers (as at 2001-02)

    is Rs. 4,350 crores.

    In terms of volume biscuit production by the organized segment in 2001-02 is estimated

    at 1.30 million tonnes. The major Brands of biscuits are - Brittania, Parle Bakeman,Priya Gold, Elite, Cremica, Dukes, Anupam, Horlicks, Craze, Nezone, besides various

    regional/State brands.

    As regards the consumption pattern is concerned. surveys and estimates by industry from

    time to time indicate the average consumption scenario in the four Zones have been

    more or less close to each other, as below:

    Northern States: 28%

    Southern States: 24%Western States: 25%

    Eastern States: 23%

    Though India is considered as the third largest producer of Biscuits after USA and

    China, the per capita consumption of biscuits in our country is only 2.1 Kg., compared tomore than 10 kg in the USA, UK and West European countries and above 4.25 kg in

    south cast Asian countries, Le. Singapore, Hong Kong, Thailand, Indonesia etc. China

    has a per capita consumption of 1.90 kg, while in the case of Japan it is estimated at 7.5

    kg.

    Biscuit manufacturing as well as other bakery products like Bread etc are agro based

    industries, with the major inputs - wheat flour/atta sugar, milk vanaspati/vegetable oil etc

    all being agriculture produces.

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    Areas of concern to industries of food products like Biscuits include multiplicity of food

    laws and their enforcing agencies in the Central and State Governments with overlapping

    functions & implementation. At the persistent instance of industry organizationsincluding FBMI the Ministry of FPI took the initiative in evolving an Integrated Food

    Act, harmonizing the existing multifarious legislations enabling better compliance. The

    Draft Unfiled Food Bill 2002 has been prepared and now awaits approval by the Cabinetand the Parliament, which will fulfill an important need of the industry and pave way for

    accelerated development and growth.

    INDIAN BISCUIT INDUSTRY AT A GLANCE IN 2011 - 2012

    The 10,000 crore biscuit industry is invaded by new players even as older players struggle to

    discover new markets and grow the market share. In India, the turnover of the industry is pegged

    at 3000 crores of which the unorganized sector accounts for as much as 35%. India is the third

    largest manufacturer of biscuits after USA and China. The industry is expected to grow at a rate

    of 15 to 17% in the next few years.

    Britannia, Parle-G, Priyagold, ITC Sunfeast are some of the popular brands. Biscuits are placed

    at a higher value chain than Bread in India. This is the reason biscuits occupy 60% of the

    production capacity of bakeries. Cadbury, Nestle and Brooke Bond tried to enter the biscuit

    market but their efforts flopped. But things are changing now. A battery of new players (Kraft,

    Pepsico, United Biscuits, Glaxo, and Danone)are waiting to enter the biscuit market.

    The domestic players are competing against each other in their respective product segments.

    Though the demand for glucose biscuits is strong, the market share continues to decline as

    healthier brands (fiber rich) are available. Surprisingly, the Indian market is still largely un-

    penetrated and this offers ample scope for growth. At present, it stands third in position among

    food industry in revenue generation.

    The organized sector continues to face competition from the unorganized players. Bakeries and

    retail coffee shops have started making biscuits in-house. Even as the established players

    continue to innovate with new products, sustainability is definitely a cause for concern.

    Consumer Buying Behavior Patter