Customers’ Brand Preference on Pasteurized Packaged Milk

Volume:01, Number:07, Nov-2011 : RJSSM Page 52 www.theinternationaljournal.org

Customers’ Brand Preference on Pasteurized Packaged Milk

S. Arun Kumar,

Associate Professor,

Department of Management Studies,

Saranathan College of Engineering,

Trichy, Tamilnadu, India.

M.Sumathy,

Reader in Commerce,

Bharathiar University,Coimbatore,

Tamilnadu-India.

Abstract

The study on customer brand preference on pasteurized packaged milk is taken place

in Coimbatore city of Tamilnadu, India. The methodology of the study is by mall intercept

response collection, whereby shoppers were intercepted in the public areas of shopping

outlets and distributed the structured questionnaire for their valuable response. Non-

Probability and purposive Sampling techniques were employed with a sample size of 150

respondents. In our materialistic and competitive societies, people want to give meaning to

their consumption by extending specific preference towards a particular brand .Hence,

producers and marketers of packaged milk products need to identify those specific

factors/variables which determine their brand preference of consumers on pasteurized

packaged milk. From this study, it is concluded that the dominant variables identified by

using statistical analysis (Multiple Regression Analysis) from consumer responses are

advertisement, reasonable price, taste, brand name and packaging which has got prominent

implications on the marketers brand building exercise.

Key Terms: Brand, Pasteurized Milk, Purposive Sampling, Packaged Milk.


1. Introduction

India has a population of more than one billion with diverse food habits, cultures,

traditions and religions. It is an understood fact that there is regional variation within India.

India got plains of long tradition of milk production and increased consumption every year

and in India where most of the coastal belts do not have sufficient dairying practices, also got

places filled with forest and hilly regions with no signs and observations of dairying

practices. The government has decided to increase the milk production in India to 180 million

tonnes by 2021-2022. In olden days milk can be purchased only from milk vendors

(unpasteurized milk), but now it’s also available in packet (pasteurized milk).Several brands

are available in the form of packet milk. Co-operative and private sectors handled only 20%

of the country’s milk production and the remaining is handled by an un-organized sector. The

Government of India had also promulgated the milk and milk product order (MMPO) 1992

on 9-06-1992 under the provisions of essential commodity act, the main objective of the

order is to maintain and increase in supply of liquid milk of desired quality in interest of

general public and also for regulating the production processing and distribution of milk and

their milk products. Rising awareness about hygiene and adulteration of loose milk has led to

a shift among consumers in urban areas to packaged milk. Consumer Preference are changing

globally incase of milk consumption in their respective markets. Mostly consumers in this

present contemporary scenario preferring packaged milk with UHT (Ultra High Temperature)

treated milk, which is due to present awareness about food safety, growing literacy rates,

consumer education campaigns sponsored by governments and dairy producers ,hence for

these reasons of health, safety and convenience, milk is increasingly consumed either in

pouches or cartons. Pasteurized plastic pouches consumption of milk products in India has

grown at the rate of 4.5%.Tamilnadu is having daily milk production of 145.88 lakh litres,

which is one of the leading states in milk production in India. Milk cooperatives of Tamil

Nadu, with the help from the government and National Dairy Development Board (NDDB),

have played substantial roles in taking the state towards higher production of milk in India.

Also, NDDB also undertakes methodical approach and appropriate marketing strategy (under

Exclusive Brand name Aavin) for the upliftment of Tamil Nadu milk cooperatives societies.

Government players along with Private players in Indian diary industry are exploring these

opportunities to come out with various milk brands. (Dennis Johnson, 2009).The major share

of processed liquid milk is marketed by dairy cooperatives in India. There are 170 Milk

producers of cooperative unions emerged in India and among which 15 state cooperative

Milk Marketing federations’ lays scattered across India. These cooperatives created several

brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan). Nandini

(Karnataka), Milma (Kerala), Aavin(Tamilnadu) and Gokul(Kolhapur). India’s largest milk

producer states are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra

Pradesh, Karnataka and Tamil Nadu. Hence,the research study focused on one particular city

of Tamilnadu namely Coimbatore ,where marketers of pasteurized milk are interested to

explore the various factors responsible for determining the brand preference among the

consumers for formulation of effective branding strategy as revealed during NDDB review

meeting minutes.

2. Research objectives

To analyze the demographic and relational profiles’ of consumers who

prefer branded pasteurized packaged milk from Coimbatore city of Tamilnadu, India.


To identify those factors and variables, which influences the brand

preferences among consumers?

3. Literature review

3.1. Conceptual Review on Branding

A brand it means the identity of a particular product, service, or business. A brand can

take many figures, including a slogan, sign, symbol, name and slogan. The word brand

simply starts from person tells about the brand to another person. If the brand name is legally

protected it means trade mark. Brand, it is the personality that pointing a product, service or

company and it how links the Customers, Staff, Partners, Investors etc. Some persons

classifies the intellectual aspect, brand association it is like images, experiences, beliefs,

attitudes, thoughts, feelings, perceptions, and so on that become linked to the brand, of a

brand from the experiential aspect. The experiential aspect refers the sum of all points of

contact with the brand and is known as the brand experience. The psychological aspect,

sometimes considered as the brand image, is a symbolic representation develops in the

minds of people and it includes all the information and expectations regarding a product and

service. People, who are indulged in branding search for development or alignment the

expectations behind the brand experience, develop a good impression that the product or

services are unique with some special qualities or characteristics. It is essential elements in

advertising. And it tells about what the brand owner can offer in market place. Consumer

perceives that branding is an essential value added aspects of product and services as it serves

as a qualitative and unique character. Normally branded products and services were prices

will be higher.

3.2. Research review on branding

In the present literature brand preference has been increased. There is more new

innovation and creativities ideas are in the market with high risk and from that most are failed

to create a market place that creates the need of the marketers to have clear cut view of

success factor in branded adoption. How the consumer prefers for various good and services

this is quite often explained in Theories of adoption.( Rogers, 1995; Tornasky and Klein,

1982; Mason, 1990; Charlotte, 1999).In brand preference profitability, risk, cost are

essential and some theories are also emphasis these things. (Dorsch etal, 2000). The

performance of a product and its function depends on the ability of the product quality.

(Kotler, 2003). A study published in Nutrition and Cancer indicates that low fat dairy

products – including low fat milk, cheese and yogurt – may help reduce the risk of colon

cancer, the third leading cause of cancer deaths in the United States. This area of research is

emerging. Studies have shown positive and neutral benefits, No other foods offer quite the

same nutrients as milk and dairy products. Most authorities, including the National Institutes

of Health and the American Dietetic Association, recommend calcium-rich foods like low fat

milk (Holt, 2001) and dairy products – rather than supplements – as the preferred source of

calcium The American diet is chronically low in calcium – a nutrient that plays a valuable

role in building strong bones and reducing the risk of osteoporosis. Research indicates

calcium may also reduce high blood pressure and decrease the risk of heart disease and

certain cancers. The latest evidence suggests that calcium may even help in the fight against

obesity – which has become an epidemic in this country. Studies indicate that calcium plays a


role in the body’s natural fat burning ability and may make weight loss efforts more effective

and improves the overall health condition of the consumer. During the change of life style,

families requires nutritious as well as the preparation period also less in time at this point,

where liquid milk holds a chance to succeed taste and preference vary from one age group to

another age group most important observations was about flavors it says, so many trends

come and go but no substitutes for flavor trend. Pasteurization is that it renders milk such

safer to drink. However, it is easy to destroy the enzymes which make milk easier to digest

and alter the flavor of the milk although person who is comfortable with the pasteurized mild

may not be a aware of the difference between raw milk and pasteurized milk. Consumer’s

behavior to product choice is greatly affected by economic circumstances and lifestyle pattern

which is shaped by whether consumers are money-constrained or time constrained (Kotler

and Keller, 2006). Identifying, defining, responding to and sometimes leading customer and

consumer tastes and requirements will always represent the primary considerations of a

marketing organization. Globally, the consumption of dairy products continues to increase in

what is constantly changing market environment (Tim Mckenna, 2005). Cow's milk is a

natural food and is the basis for all other dairy products. We need milk for all the vitamins

and minerals it contains, that are essential to a healthy life. Milk provides us with calcium

which helps to maintain the strength and density of our bone. This mineral also helps to

prevent bone loss. Cotton B.C. (1978) reported results of a study which measured the

response of consumer to promotional deals for dairy products. The objectives were to

determine extent to which consumption of various dairy products was influenced by deals; to

analyze response of household with various demographic characteristics; and to determine

relative response for different types of promotional deals An advertisement, as defined by

Hanson (1990) is consumer education, this is because advertisements are informative sources

to consumers and the dairy milk market for long and it has been observed that gluts do occur

at times in the market, these gluts may be due to the ignorance (lack of awareness) of the

products, which now makes these products remain for longer than necessary on the shelves

where they may exceed their expiry dates thereby causing losses to producer and sellers alike,

the need therefore to enlighten the public (consumers) has now led marketers into spending

money on enlightening the populace about the presence and importance of their products, this

they do through advertising and sales promotion. (Iliriana Miftari, 2009) represents the men

had much more buying power compared to women. Men’s role in the decisions process for

milk and other dairy products was mainly as buyers. Women’s role in the decisions process

was mainly as influencers and deciders of the product choice. New entrants to the market

could not use the established distribution channels because they were owned and operated by

the local dairy company. Consequently, entering firms channeled their products to consumers

through other food retail outlets: street vendors, small grocery stores, and the newly emerging

supermarkets and convenience stores. The proliferation of nutrition information and positive

messages promoting milk consumption can be viewed as an increase in the education level of

the general population concerning dairy products.(fuller etal., 2004) . Advertisement and

sales promotion create the awareness about the product; it has positive impact on sales

(Adentunji etal. 2007). Innovation has always played a key role in expansion and creation of

any category – the innovation in processing coupled with innovation in packaging of raw

milk, paved way for an alternate healthy beverage segment. Today the packaged milk and

milk-based beverage segment offers everything from plain pasteurized variants of milk such

as toned milk, double toned milk, skimmed milk, ultra-high-temperature (UHT) pasteurized

milk, full cream milk, standardized milk to fortified milk and slew of ready-to drink (RTD)

milk-based beverages – flavored milk, milk shakes, cold coffees, butter milk, yoghurt based

traditional Indian beverages lassi and thandai, herbal milk drinks, milk based sports drinks

Volume:01, Number:07, Nov-2011 : RJSSM 6 www.theinternationaljournal.org

and probiotic milks(Juhi Sharma, 2009).The brand is a complex quality cue and an important

factor in purchase decision making. Brand has also a potential to influence on the formulation

of sensory evaluation (Deliza and MacFie, 1996). When brand equity is high, customers are

often more prepared to pay a price premium for the product and are more likely to engage in

favorable word-of-mouth communications regarding the firm and its brands (Bendixen,

Bukasa and Abratt, 2004).

The expected shelf life of pasteurized milk has increased significantly during the past

25 years. Much of the packaged milk today is dated for removal from the store after 2 week

but with a statement on the package that it will keep an additional week if properly

refrigerated. Thus, there has been an apparent increase in psychrotrophic off-flavors primarily

from longer storage of milk prior to consumption and often at temperatures that favor growth

of causative bacteria. Longer storage for raw milk also can contribute to the problem, if

excessive growth of psychrotrophs occurs. Although the bacteria are killed by pasteurization,

certain heat resistant enzymes subsequently may catalyze proteolytic and lipolytic reactions.

Flavors associated with psychrotrophic growth include bitter, fruity, putrid, and unclean

(Thomas, 1981).CAGR of global consumption of milk and dairy products is expected by rise

of 2.2% over the next three years. Consumption of long-life packaged milk is also on the rise

in the advanced, mature markets where milk consumption is already very high. (Dennis

Johnson, 2009). The researcher hypothesized that the choice or preference of a dairy brands

are influenced by the following factors through literature review: A Conceptual framework

has been developed using the theoretical review and the same was used for developing the

measurement scale construct.

3.3Proposed Conceptual Framework for the study

Figure 1: Items or variables which influences the brand preferences

4. Research methodology

Research sites and sampling frame-The research was carried out in Coimbatore city of

Tamilnadu, South India in Urban sites. The study cover high-density areas like Gandhipuram,

Lakshmipuram, Gopalapuram, RS.Puram, Rathinapuri of 30 respondents from each place

Doctor’s

Recommendation

Health

Contribution

Mnf/Exp

Date

Innovative

Packaging

Promotion

Activities

Brand Name

Reasonable

Price

Prompt Supply

Freshness

Taste

Fat Control

Door

Deliver

y

Advertisement

Brand

Preferences


located across four zones of Coimbatore city.The sampling frame consists of meeting the

consumers in the mentioned respective place of Coimbatore city since they represent the

target market for dairy milk.

Sample size determination- A sample size of 150 respondents from the target market of

individual consumers was taken for the study.

Data collection

Data were collected by means of a structured questionnaire. Five point likert scale used in the

measurement scale.

Statistical tools used: Cronbach's α (alpha) is commonly used as a measure of the internal

consistency or reliability of an which will generally increase as the intercorrelations among

test items increase and is thus known as an internal consistency estimate of reliability of test

scores(.81), because intercorrelations among test items are maximized when all items

measure the same construct i.e. which indirectly indicate the degree to which a set of items

measures a single one-dimensional latent construct.Demographic and Relational profile of

consumers analyzed using frequency analysis (i.e.) percentage analysis in this study. Factor

analysis was used to identity the factors which determine brand preference in dairy milk.

Factor analyses (FA) are techniques used when the researcher is interested in identifying a

smaller number of factors underlying a large number of observed variables. Variables that

have a high correlation between them, and are largely independent of other subsets of

variable, are combined into factors. Finally in this study multiple regression analysis is the

simplest form of regression analysis which involves finding the best straight line relationship

between dependent and two or more independent variables.


5. Findings and Analysis

Table No 1: Demographic Profile of Respondents

Factors Category No. of Respondents Percent

Age

Below 20 23 15.3

21-30 53 35.3

31-40 26 17.3

41-50 30 20

Above 50 18 12

Gender

Male 53 35.3

Female 97 64.7

Education

Illiterate 11 7.3

Primary 18 12

SSLC 17 11.3

HSC 48 32

Graduates 35 23.3

Post graduates 21 14

Occupation

Govt. employee 13 8.7

Private Employees 63 42

Professional 9 6

Self Employed 14 9.3

House Wife’s 21 14

Students 30 20

Annual Income

Below 10000 27 18

10001-15000 34 22.6

15001-20000 47 31.4

20001-25000 22 15

Above 25000 20 13

No. of family

members

1-2 numbers 29 19.3

03-Apr 89 59.3

05-Jun 31 20.7

Above 6 1 0.7

The above table visualizes the demographic profile of the customers of 150

respondents, more than 53 respondents (35.3%) were in the age group between 21 and 30

years and also 97 respondents (64.7%) of them are females, 53 respondents (35.3%) of them

are males, 48 respondents (32%) of the customer had HSC qualification, 63 respondents

(42%) were private employees. As far as the incomes were concerned 47 respondents

(31.4%) of them earn 15001 to 20000 and 89 respondents (59.3%) had 3 to 4 members in

their family.


Table No2: Relational Profiles of Respondents

Factors Category No. of Respondents Percent

Brand consumed

Arockiya 35 23.3

Aavin 49 32.7

Hutsun 3 2

Sakthi 6 4

Vijay 7 4.7

Apoorva 6 4

Akshaya 9 6

Anantha 6 4

Kannimars 1 0.7

taste me 4 2.7

Amirtha 3 2

Aroma 18 12

Kamadhenu 3 2

Dailymilk consumption

1/2 liters 56 37.3

1 liter 67 44.7

1.5 liter 22 14.7

2 liters 5 3.3

Packet sizes

250ml 36 24

500ml 97 64.7

1 liters 17 11.3

Purchase decision

Husband 18 12

Wife 41 27.3

Parents 56 37.3

Children 18 12

Collective 17 11.3

Source of Information

Television 48 32

Friends and Relatives 49 32.7

Milk vendors 42 28

News papers & Magazines’ 7 4.7

Radio 1 0.7

Hoardings 3 2

Preferred Payment mode

Cash 102 68

Credit 31 20.7

Advance Payment 17 11.3

Reason for Change brands

Agent Preference 21 14

Varied Price 63 42

Inconsistency In Quality 29 19.3

Availability Problem 37 24.7

The above table visualizes the relational profile of the respondents among the

customers of pasteurized milk, from the total of 150 respondents, 49 respondents (32.7%) of

them prefer to buy Aavin brand pasteurized milk, and 35 respondents (23.3 %) of them

prefer to buy Arockiya brand pasteurized milk. Moreover 67 respondents (44.7%) of the


customer consumes one liter daily. Similarly 97 respondents(64.7%) of customer prefer

500ml packet size ,56 respondents(37.3%) purchase decision done by parents , 49

respondents(32.7%) of them get the information through friends and relatives ,102

respondents(68%) claims milk payment is made through cash payment and finally 63

respondents(42 %) of them change the brand due to varied price .

Table No 3: Contribution of subset variables of brand preference towards overall brand

preference.

Model Independent Variables

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

B

Std.

Error Beta

12 (Constant) 0.04 0.041 0.857 0.39

Good For Health(x1) 0.08 0.01 0.138 8.576 0

Brand Name(x2) 0.09 0.007 0.18 13.18 0

Promotional

Activities(x3) 0.08 0.005 0.201 16.5 0

Doctor

recommendation(x4) 0.08 0.007 0.14 10.4 0

Reasonable Price(x5) 0.1 0.008 0.171 13.42 0

Advertisement(x6) 0.1 0.006 0.232 18.65 0

Freshness(x7) 0.07 0.009 0.107 7.996 0

MNF/Exp Date(x8) 0.08 0.007 0.13 10.7 0

Taste(x9) 0.09 0.009 0.138 10.46 0

Packaging(x10) 0.09 0.008 0.151 10.91 0

Prompt Supply(x11) 0.06 0.006 0.117 9.592 0

Fat Control(x12) 0.08 0.009 0.128 8.622 0

a Dependent Variable: Overall Brand Preference.

Multiple R = 0.993 F-Value =803.615, d.f (12,137), P-Value <0.01 R Square = 0.986

Ŷ = 0.035+0.082x1 +0.088x2 + 0.075x3 + 0.075x4 + 0.103x5 + 0.104x6 + 0.072x7 + 0.079x8

+ 0.090 x9 + 0.086x10 + 0.061x11 + 0.075x12

Where, Ŷ is the estimated brand preference.

The above equation shows the impact of the variables such as good for health, brand

name, promotional activities, doctors’ Recommendation, reasonable price, advertisement,

freshness, Mnf/Exp date, taste, packaging, prompt supply, fat control to the brand preference

among pasteurized packaged milk segment. On an average if the preference score of good for

health changes by 1 unit, there will be 0.082 units increase in the overall brand preference

when other variables are kept constant. More over the result of the t-test conforms that the

calculated partial regression co-efficient are highly significant at 1 percent level .Similarly

the Multiple R of 0.993 shows there exist a relationship of 99.3 percent between the


variables of brand preference and over all brand preference. R Square of 0.986 denotes that

the variables of brand preference explain the variation of 98.6 percent in the overall brand

preference. Finally, the result of the F -test signifies that the explained variation by the above

set variables in the construct was highly significant at 1 percent level. From the above

analysis it is concluded that the variables of brand preference aspect namely Advertisement,

Reasonable Price, Taste and Brand Name where the dominant variables that increase the

overall brand preference of customer of pasteurized packaged milk segment.

Table No 4: Total Variance Explained

Factors Rotation Sums of Squared Loadings

Eigen

Value

% of

Variance

Cumulative

%

1 2.633 20.254 20.254

2 2.428 18.675 38.930

3 1.743 13.411 52.341

4 1.462 11.249 63.590

Kaiser – Meyer – Olkin measures of sampling adequacy Value = 0.715

The above table exhibits the result of factor analysis with principal component

analysis of 13 items of brand preference. From the 13 items, four factors were extracted and

this has been confirmed by the Eigen value for the extracted factors were 2.633, 2.428, 1.743

and 1.462 respectively (greater than recommend level of 1). It is worth to note that the first

factor explained a variance of 20.254 percent about the original set of items. Moreover, the

four factors explained a variance of 63.590 percent about the 13 Items in the construct.

Finally, the Kaiser – Meyer – Olkin measures of sampling adequacy of 0.715 shows that the

variables and the sample size of 150 were viable and feasible to run a factor analysis.

Table No 5: Rotated Component Matrix (a)

Component

1 2 3 4

Freshness .728 .022 .260 -.018

Taste .661 -.046 .414 -.044

Prompt Supply .029 .186 .742 .189

Reasonable Price .140 .014 .821 .056

Brand Name .760 .159 .084 -.020

Various Schemes .188 .145 .200 .747

Packaging .647 .392 -.142 .283

MNF/Exp Date .660 .086 -.098 -.124

Good For Health .308 .719 .323 -.198

Fat Control .056 .700 .251 -.479

Doctor

Recommendation

.069 .789 .084 .216

Advertisement .066 .302 -.146 .743

Door delivery -.268 .032 .600 .084

Bartlett’s test of Sphericity –Approx. chi-square = 568.331 d.f = 78 P-value < 0.01

The above table No 5 shows the result of factor analysis with the extraction technique

of principal component analysis as well as the rotated component matrix based on the

varimax rotation technique.


It is inferred that the researcher identified only those items which are greater than ±

0.5 value which got factor loaded in the respective factors. In Factor 1 the variables such as

Freshness, Taste, Brand Name and Packaging are loaded together and termed as Product

Expectation. In Factor2 the variables such as good for health, fat control and doctor

recommendation loaded together and termed as Healthiness. In Factor 3 the variables such

as Prompt supply, Reasonable price and Door delivery loaded together and termed as On

Time value .Finally, in Factor 4 the variables namely various schemes and advertisement are

loaded together and termed as Promotion Mix.

Conclusions and implications of the study:

In our materialistic and competitive societies, people want to give meaning to their

consumption through their specific preference towards a particular brand .Marketers need to

identify those factors which determine their brand preference; it is a mandatory exercise to

fulfill contemporary needs of consumers to withstand into this competitive business scenario.

Brand positioning is an exercise of occupying a rigid bonded space in the minds of the

consumers. Analysis on brand preference will deliver a scope for brand loyalty which

ultimately brings in mutual profit both for consumers and organization.

Private players and government producers of pasteurized packaged milk packets have

to understand the consumer preference by identifying those specific factors and variables,

which influence the purchase of branded milk packets. Factor which constitutes the variables

such as Freshness, Taste, Brand Name and Packaging are loaded together and termed as

Product Expectation. The variables such as good for health, fat control and doctor

recommendation loaded together and termed as Healthiness Factor and the variables such as

Prompt supply, reasonable price and Door delivery loaded together and termed as On Time

value. Hence, these factors to be concentrated while doing brand building exercise. Finally,

specific variables namely various schemes and advertisement are loaded together and termed

as Promotion Mix. It is inferred from the multiple regression analysis that the advertisement,

reasonable price, taste, brand name and packaging are the most important attributes marketers

of branded packaged milk need to focus on, since these are the most preferred variables in

consumer brand selection. It is also observed that these dominant variables found in the

regression analysis, also got loaded high in the factor dimensions of factor analysis. Hence, it

is concluded that these specific variables to be given due importance in their branding

strategy.

Future recommendation for further research: Researcher in future need to focus

on other cities and states in India whenever sampling consideration to be done in order for a

comprehensive study. A pilot study followed by scientific estimation of large sample size to

be executed for better research analysis. More variables need to be incorporated through

scientific validation of the construct and reliability checking.

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