FMCG Sector Faces Rising Input Costs

III
EXECUTIVE SUMMARY
The fast-moving consumer goods (FMCG) sector is an important contributor to India’s GDP and
it is the fourth largest sector of the Indian economy. Items in this category are meant for frequent
consumption and they usually yield a high return. The most common in the list are toilet soaps,
detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and
household accessories and extends to certain electronic goods. The Indian FMCG sector, which
is the fourth biggest sector in the Indian economy with total market size of US$13.1 billion.
In 1963 Shri Rambhai Patel founded “Ramdev Masala”. In 1965-66 he started grinding basic
spices like chili powder, turmeric powder & coriander powder. In 1971-72 Mr. Rambhai Patel
had started their first depot in Saraspur, and started selling in 10kg packs in wholesale market.
In 1989-90, he had established “Ramdev Food Product Ltd” at sola sarkhej- Gandhinagar
Highway, Ahmedabad, by producing chilli powder, turmeric powder and coriander powder on
initial basis. In 1992 all three brothers of Rambhai Patel has decide to separate their
business Mr. Hasmukhbhai Patel stays with the Ramdev food product Pvt ltd and Mr.
Arvindbhai Patel stays with Ramdev masala and Ramdev export with brand name of “SWAD”
where as third brother Mr. Arvindbhai Patel has started their own business with the brand
name of “PARTH”. In 1998 Ramdev has started its own manufacturing at changoder. From
2001 Ramdev started its Exporting to U.S.A and other countries of south east area.
There is the specific title for any research activity. So, our title of the research is “A study on
Consumer Buying Behavior toward Namkeens in Ahmedabad city” the Main objective of
our research is to know whether company should introduce new product- namkeen or not and
the Sub-objectives are to know consumer buying behavior toward namkeens, to find out the
factors that affects the Customers buying behavior, to find out the brands in namkeen which are
consumed more. We have used Descriptive research design. We have collected the primary data
through the questionnaire. The sample size of the survey is 250. We have chosen
“Questionnaire” as a tool for primary data collection and “Internet access” for the secondary
data collection.

IV
Consumer behaviour is the study of how individuals, groups and organization select, buy, use
and dispose of goods, services, ideas, or experience to satisfy their needs and wants. Marketer
must understand theory and reality of consumer behaviour. Consumer’s buyer behaviour and the
resulting purchase decision are strongly influenced by cultural, social, personal and
psychological characteristics.
We have done data analysis and interpretation with the help of table and charts as well as we
have used the various tests like reliability, ANOVA, factor analysis, independent sample T-test
and cross tabulation to make the analysis more worthy.
Last phase of the project report is findings and suggestions. Price, quality and taste are the very
important factors which the consumers consider while purchasing namkeen. Consumers more
prefer aloo sev, sing bhujiya , farali chevdo and chana dal. Advertisement factor is less
considered while purchasing namkeen. As 70% of consumers have said yes for launching the
new product-namkeen, company should launch the new product namkeen because it will be a
new product line for the company.

INDEX
Chapter SUB. SR.NO. PARTICULARS PAGE NO.
* PREFACE I.
* ACKNOWLEDGEMENT II.
* EXECUTIVE SUMMARY III.
1 Industry Profile
1.1 Global Scenario Of FMCG Industry 1
1.2 Indian Scenario Of FMCG Industry 2
1.3 Main segments of FMCG market 3
1.4 Top 10 FMCG company 5
1.5 Growth drivers of india’s FMCG sector 5
1.6 Trends in FMCG market 6
1.7
Growth opportunities in the Indian FMCG
industry
7
2 Company Profile
2.1 Introduction of Ramdev 8
2.2 History and development of the unit 8
2.3 Vision statement 11
2.4 Mission statement 11
2.5 Market of the company 11
2.6 Products of the company 14

2.7 Competitors of the company 15
2.8 Distribution channel 15
3 Literature Review 16
4
Introduction About Consumer Buying
Behavior
19
5 Research Methodology
5.1 Title of the research 22
5.2 Research objectives 22
5.3 Research design 22
5.4 Source of data 22
5.5 Data collection method 23
5.6 Population 23
5.7 Sampling method 23
5.8 Sampling frame 23
5.9 Sample size 23
5.10 Data collection instrument 24
5.11 Analysis tools 24
5.12 Limitations of study 24
6 Data analysis & interpretation 25

7 Inferential statistics
7.1 Reliability test 45
7.2 ANOVA 46
7.3 Independent sample T-test 53
7.4 Factor analysis 56
7.5 Cross tabulation 58
8 Findings 64
9 Suggestions 65
10 Conclusion 66
* Bibliography 67
* Annexure 68

S.V.INSTITUTE OF MANAGEMENT, KADI Page 1
Fast-moving consumer goods (FMCG) companies are faced with rising input costs yet again.
February has seen prices of coffee, copra and palm oil rise compared to January. Commodity
prices have been steadily increasing since last year but remained flat in January this year. Erratic
weather conditions in some part of the world have pushed up prices of select commodities.
Compared to January, coffee prices are up 34.2 per cent, palm oil is up 10 per cent and copra is
up six per cent.
Analysts say the raw material cost index is up across the board. The commodities that saw a
month-on-month fall in prices include: tea, safflower oil, mentha oil and sugar. The fall in prices
is marginal compared to the sharp rise in other commodities. As a result, the downward pressure
on margins would be greater. Over the past two months, global food prices have risen, thanks to
droughts in Brazil and dry weather conditions in south east Asia, which will continue to put
pressure on commodity prices in the coming months.
Religare Institutional Research says: "Barring Emami, which saw lower input cost inflation,
most other companies such as Godrej Consumer, Nestle, and Marico saw the highest impact of
input cost inflation."
Despite the increase in costs, pricing has remained stable during the fourth quarter. Slow growth
and dipping volumes have prevented companies from increasing prices in the March quarter. In
the first two quarters of FY14, FMCG companies reported margin expansion, but this was
largely driven by falling raw material costs. If raw material prices continue to inch up and
companies are unable to pass on the cost push, margins will start declining again. In the first
quarter, Hindustan Unilever's gross margins expanded 160 basis points to 48.9 per cent and
operating margin rose 80 basis points to 15.9 per cent, compared to the corresponding period in
the previous year, but analysts stayed bearish on the stock as underlying volume growth was four
per cent.
1.1 GLOBAL SCENARIO OF FMCG INDUSTRY

The FMCG industry's volume growth isn't coming back in a hurry, analysts believe. UBS Global
Research expects volume growth to rebound from the current level of 0.5 per cent to five-six per
cent over the next one to two years, given the year-on-year volume growth of six-seven per cent
recorded over the 2004-08 period. However, with rural demand cooling, double-digit volume
growth is unlikely in the near future. Not only have FMCG stocks underperformed the BSE
Sensex by 8.4 per cent since the middle of 2013, but the sector has also seen earnings estimates
for FY15 have declined by an average of five per cent. The decline in earnings estimates for ITC
and HUL are better than that of the sector. Overall, FY15 is expected to be another lukewarm
year for consumer companies.1
The fast-moving consumer goods (FMCG) sector is an important contributor to India’s GDP and
it is the fourth largest sector of the Indian economy. Items in this category are meant for frequent
consumption and they usually yield a high return. The most common in the list are toilet soaps,
detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and
household accessories and extends to certain electronic goods. The Indian FMCG sector, which
is the fourth biggest sector in the Indian economy with total market size of US$13.1 billion.
The Indian FMCG sector is highly fragmented. The sector has a strong MNC presence, well
established distribution network and high competition between organized and unorganized
players. FMCG products are branded while players incur heavy advertising, marketing,
packaging and distribution costs. The pricing of the final product also depends on the costs of
raw material used. The growth of the sector has been driven by both the rural and urban
1
http://www.business-standard.com/article/opinion/raw-material-costs-up-for-fmcg-companies-in-q4-
114040300753_1.html
1.2 INDIAN SCENARIO OF FMCG INDUSTRY

segments. India is becoming one of the most attractive markets for foreign FMCG players due to
easy availability of imported raw materials and cheaper labour costs.2
The FMCG sector has grown at an annual average of about 11 per cent over the last decade
Retail market in India is estimated to reach USD 450 billion by 2015, with organised retail
accounting for a 14–18 per cent share; this is likely to boost revenues of FMCG companies.
‘Food products’ is the leading segment, accounting for 43.0 per cent of the overall market. The
urban segment is the largest contributor to the sector, accounting for over two-thirds of total
revenue. Semi-urban and rural segments are growing at a rapid pace; they currently account for
33.5 per cent of revenues. FMCG products account for 53.0 per cent of total rural spending. A
total of 7.8 million retail outlets sell FMCG in India.
2
http://reports.dionglobal.in/Actionfinadmin/Reports/FDR0108201343.pdf
FMCG
Household care Personal care Food&
beverages
Health care
OTC products
and ethical
Fabric wash,
Household cleaners
Health beverages,
staples/cereals, bakery
products, snacks,
chocolates, ice-cream,
tea/coffee/soft drinks,
processed fruits and
vegetables, dairy products,
and branded flour
Oral care, hair care,
skin care,
cosmetics/deodorants,
perfumes, feminine
hygiene and paper
products
1.3 MAIN SEGMENTS OF FMCG MARKET

 INDIAN SNACKS MARKET
Netscribes’ latest market research report titled Snacks Market in India 2014 elaborates the
competitive market scenario of the Indian snacks market and its growth prospects in the ensuing
years. Indian snacks market is experiencing rising demand due to various driving factors which
in turn is providing immense opportunities to manufacturers to grow and operate in the market
lucratively. The report provides a snapshot of the Indian snacks industry that has witnessed
several changes since 1995. In the initial years, the market was dominated by two players –
traditional snacks player Haldiram and ‘Uncle Chips’ manufacturer Amrit Agro. Later on, with
the entry of global beverage and snacks player PepsiCo, the market dynamics changed
completely. Now, the market is dominated by PepsiCo with its wide range of product portfolio.
The other major players include Parle Agro, ITC, Parle Products, Balaji Wafers and Parle Wafers
among others. A number of regional players have also entered the market over the past few years
and are giving tough competition to the big players.
The snacks market is classified into two broad segments – Western and traditional snack
segments, wherein western snacks enjoy more popularity in comparison to the traditional snacks.
Moreover, the western snack segment is dominated by a large number of MNCs and organized
snack manufacturers.
There are certain factors that have predominantly worked towards enabling the sector to grow in
recent years. These include higher disposable incomes have enabled consumers to enhance their
purchasing power, rapid urbanization which leads to busy lifestyles and subsequent inclination of
consumers toward packaged food products and aggressive marketing campaigns by all the
players to break the product clutter and attract consumers toward their brand. In addition to
these, the other factors which are contributing towards rapid growth of the industry include
growing working women population, fast expanding retail network and the convenience factor
associated with snack consumption. For snacks, quality standards laid by FSSAI have to be
followed by the industry players.

Various government policies that have been formulated for the food processing sector such as
FDI, tax benefits and export promotions are applicable for the snack category as well.3
1. ITC Ltd
2. HUL
3. Nestle India
4. Dabur India Ltd
5. Godrej Consumer Products Ltd
6. Colgate Palmolive
7. Marico Ltd
8. Procter & Gamble (India)
9. Britannia
10. Emami
Rising incomes driving purchase
Desire to experiment with brands
Evolving consumer lifestyle
New product launches
Growth of modern trade
Availability of online channels to shop
Increasing consumer demand
3
http://www.marketresearch.com/Netscribes-India-Pvt-Ltd-v3676/Snacks-India-8085255
1.4 TOP 10 FMCG COMPANY IN INDIA
1.5 GROWTH DRIVERS OF INDIA’S FMCG SECTOR

 Indian FMCG companies are consolidating their existing business portfolios
 Several companies have started innovating or customizing their existing product
portfolios for new consumer segments
 Consumers are becoming more brand conscious and prefer lifestyle and premium range
products given their increasing disposable incomes
 A number of companies are exploring the business potential of overseas markets and
several regional markets
 Backward integration is becoming the preferred strategy for increasing profit margins
 Companies are now focusing on the rural market segment which is growing at a rapid
pace and contributes about 33 per cent to the total FMCG market
 Companies are now focused on improving their distribution networks to expand their
reach in rural India
 Reservation of several items for SSI as well as additional tax incentives have made third
party manufacturing a popular route for many big players
 Companies are increasingly introducing smaller stock keeping units at reduced prices.
This helps them to sustain margins, maintain volumes from price-conscious customers
and expand their consumer base
 Small towns are emerging as significant hiring zones. FMCG companies are hiring field
staff from areas such as Kalpa (Himachal Pradesh), Mangaliya (Madhya Pradesh), Kota
(Rajasthan), and Shirdi (Maharashtra) to sell diverse products
 FMCG players in India are increasingly focussing on reducing their carbon footprint by
creating eco-friendly products. They generate the required energy from renewable
sources and earn CER credits for the same
 With the rise of retail players, private label has become popular in the FMCG space.
Private Label goods are considered substitutes of premium branded goods
1.6 TRENDS IN FMCG INDUSTRY

Leading players of consumer products have a strong distribution network in rural India;
they also stand to gain from the contribution of technological advances such as internet
and e-commerce to better logistics
Rural FMCG market size is expected to touch USD100 billion by 2025
Indian consumers are highly adaptable to new and innovative products. For instance there
has been an easy acceptance of men’s fairness creams, flavoured yoghurt, and cuppa
mania noodles
With rise in disposable incomes, mid- and high-income consumers in urban areas have
shifted their purchase trend from essential to premium products
In response, firms have started enhancing their premium products portfolio
Indian and multinational FMCG players can leverage India as a strategic sourcing hub for
cost-competitive product development and manufacturing to cater to international
markets
Low penetration levels offer room for growth across consumption categories
Majors players are focusing on rural markets to increase their penetration in those areas4
4
http://www.ibef.org/download/FMCG-March-2014.pdf
1.7 GROWTH OPPORTUNITIES IN THE INDIAN FMCG INDUSTRY

Manufacturer, Processor & Exporter of top quality Indian Spices, Instant mixes, compounded
asafetida, blended spices, whole spices, general spices. pulses, food grains, branded and
unbranded grocery products made in the most modern & advanced plants with sophisticated
infrastructure & superb hygienic conditions offered by one of the most reputed corporate
houses of India.
BASIC SPICES INSTANTMIXES INDIAN
GROCERIES
GENERALSPICES WHOLESPICES BLENDEDSPICES
India, the Queen of Spices, has always attracted the world with her exotic masalas. In fact, the
connection goes back many centuries. Ramdev has preserved the Indian values in all its products
ever since it started as a small unit in 1965, in Ahmedabad, India. A small step became a giant
leap in no time. But there was a binding force, a commitment that helped Ramdev keep its
promise of purity and freshness in its products for all these years. Ramdev’s immense belief in
the philosophy of ‘reaching a customer’s heart through quality’ has enabled it to spread the rich
Indian heritage to millions of homes all over the globe.
Branded spices were launched in the year of 1989. Ramdev was the first to launch the branded
spices. At the time spice market was totally controlled by loose products. The objective behind
launching of branded spices was giving superior quality products and to make spices available at
each and every retail counter.
2.1 INTRODUCTION OF RAMDEV
2.2 HISTORY AND DEVELOPMENT OF THE UNIT

Rambhai started “Atta Chakki” at Saraspur in 1963.Then after he started “RAMDEV” in 1989.
After starting Ramdev food, he started to produce Garam masala, tea masala, coriander and
Hing in 1990-92, and after that he started to produce INDIAN GROCERIES and he moves on
Instant Mix product.
In 1995 Ramdev Food put their products in Rajasthan state and now 18 states are covered by
Ramdev Company. Ramdev have around 1000 distributors and more than 87000 retailers in
over all India.
Main Business
The main business of Ramdev is to be serving the interest of chili powder producer and supply
good quality of chilly and other kitchen items at reasonable price to consumer. The main
objective of Ramdev is to accept the surplus chilly from farmers and also provide reasonable
return to them.
Milestones of Ramdev:-
 In 1963 Shri Rambhai Patel founded “Ramdev Masala”
 In 1965-66 he started grinding basic spices like chili powder, turmeric powder &
coriander powder
 In 1971-72 Mr. Rambhai Patel had started their first depot in Saraspur, and started
selling in 10kg packs in wholesale market.
 In 1974-75 the new plant of Ramdev in Madhupura established.
 In 1976-77, he established their second depot in Madhupura. Also in 1978-79 new
depot of Ramdev was started at Kalol.
 In 1989-90, he had established “Ramdev Food Product Ltd” at sola,sarkhej-
Gandhinagar Highway, Ahmedabad, by producing chilli powder, turmeric powder
and coriander powder on initial basis
 In 1990-91,Ramdev started selling “Garam masala”
 In 1991-92 “Ramdev Exports” unit established.

 Also in 1991-92 Ramdev started instant mix.
 In 1992: Company introduced “Asafoetida” in this year.
 In 1993 Ramdev started producing Pickle Powder.
 In 1992 all three brothers of Rambhai Patel has decide to separate their business
Mr. Hasmukhbhai Patel stays with the Ramdev food product Pvt ltd and Mr. Arvindbhai
Patel stays with Ramdev masala and Ramdev export with brand name of “SWAD”
where as third brother Mr. Arvindbhai Patel has started their own business with
the brand name of “PARTH”
 In 1998 Ramdev has started its own manufacturing at changoder
 In 1999 Company entered into the business of whole spices like Jiru, Rai, Tal, Methi
& Ramdev started selling in other states of Gujarat
 In 2000 Ramdev has increase its product line with the whole spices category also
increasing its product length
 In 2001 Hasmukhbhai Patel has started “Ekta Food” in U.S.A
 It launched super Hing low price Asafoetida in year 2001 to cater to the needs of the
market.
 From 2001 Ramdev started its Exporting to U.S.A and other countries of south east
area
 Ramdev is catering market through 11 C&F’s, 645 distributors, 78680 calls, 16
 States and 167 sales team persons
 Total turnover of Ramdev Food Products Pvt. Ltd. Is Rs. 55 cores for the year of
2004-05.which around doubles 105 cores in the year 2008-09

Vision of the company is to make available the Ramdev brand at every counter at every
center through increase distribution networks.
Ramdev will be concentrating on new product developments. Launching of newer
products will be prime focus.
“A Promise of Purity and Freshness”.
Mission of Ramdev is to deliver spices to customers with quality, purity and freshness.
They also try to make spices in such a way that it can satisfy all consumers need like test, color,
good for health etc. also they wants to give spices to customer at reasonable price and it must be
available in the size that suits customer demand.
Premium spices
Kashmiri Chilli Powder/ Mirch Powder
Turmeric Powder/ Haldi Powder
Coriander Cumin Powder/ Dhania-Jeera Powder
2.3 VISION STATEMENT
2.4 MISSION STATEMENT
2.5 PRODUCTS OF THE COMPANY

Basic spices
Chilli Powder / Mirch Powder
Turmeric Powder / Haldi Powder
Coriander Powder / Dhania Powder
Coriander Cumin Powder / Dhania-Jeera Powder
Cumin Powder
Cumin Whole / Jeera Whole
Asafoetida (Hing)
Compounded Asafoetida Powder (Hing Powder)
Premium Asafoetida / Premium Strong Hing
Super Asafoetida / Super Hing
Gold Asafoetida / Gold Hing

Instant mixes
Gota
Khaman
Dalwada
Dahiwada
Idli
Dhokla
Menduwada
Dhosa
Pizza
GulabJamun
MethiGota
Handvo
Mathia
Fafda
Premium blended masala
Premium Garam Masala Premium All In One Masala
Premium Tea Masala Premium Kitchen King Masala
Premium Pavbhaji Masala Gold Garam Masala
Premium Chhole Masala Premium Rajma Masala
Premium Panipuri Masala Premium Kali Mirch Powder
Premium Sambhar Masala Premium White Mirch Powder
Premium Chat Masala Premium Aamchur Powder
Premium KasuriMethi Premium Biryani Pulav Masala
Premium Jaljira Masala Premium Black Pepper Powder

Blended masala
Achar Masala
Kanda Lasoon Masala
Super Tea Masala
Super Garam Masala
Papad
Single Mari Papad
Double Mari Papad
Indian Market International Market
Delhi USA
Gujarat Japan
Rajasthan (Jaipur) Australia
West Bengal (Calcutta) Canada
Bihar(Patna) Africa
Himachal Pradesh(parwanoo) Qatar
Punjab (Chandigarh) UK
Haryana (Ambala) China
Madhya Pradesh (Indore, Raipur) Dubai
Maharashtra (Mumbai, Nagpur, Pune) Newzealand
Orissa (Bhuvneshwar)
Uttar Pradesh (Kanpur, Ghaziabad)
2.6 MARKET OF THE COMPANY

Everest Gajanand Foods Pvt. Ltd. Kitchen Xpress
J.P. Food Shree Ganesh Masala BadshahMasala
Catch Masala MDH MTR
In Gujarat Out Of Gujarat
Factory
Retailer
Distributor
Customer
Customer
Retailers
Distributor
Agents
Factory
2.7 COMPETITORS OF THE COMPANY
2.8 DISTRIBUTION CHANNEL

Introduction
In Present Marketing Scenario, the Study of Consumer Behavior has become essential.
Consumers are the kings of markets. Without consumers no business organization can run. All
the activities of the business concerns end with consumers and consumer satisfaction. Customer
behavior study is based on consumer buying behavior, with the customer playing the three
distinct roles of user, payer and buyer.
The knowledge of consumer behavior helps the marketer to understand how consumers think,
feel and select from alternatives like products, brands and the like and how the consumers are
influenced by their environment, the reference groups, family, and salespersons and so on. A
consumer‟s buying behavior is influenced by cultural, social, personal and psychological factors.
Most of these factors are uncontrollable and beyond the hands of marketers but they have to be
considered while trying to understand the complex behavior of the consumers.
Detail study
According to (Leila Haghshenas, 2013)Consumer behavior is a process. Consumer behavior
included a series of activities (selection, purchase,consumption, etc.) during the purchase and
after the purchase is going as continuous process.
Consumer behavior is different for different people. Due to individual differences and theimpact
of outside forces on the different types of people, consumers have a variety of behaviorsand
these differences cause difficult to predict consumer behavior.
(Yakup & Jablonsk, 2012)The task of marketing is to identify consumers’ needs and wants
accurately, then to develop productsand services that will satisfy them. For marketing to be
successful, it is not sufficient to merely discover what customers require, but to find out why it is
required.
3 LITERATURE REVIEW

Only by gaining a deep and comprehensive understanding of buyer behaviour can marketing’s
goals berealised. Such an understanding of buyer behavior works to the mutual advantage of the
consumer and marketer, allowing the marketer to become better equipped to satisfy the
consumer’s needs efficiently and establish a loyal group of customers with positive attitudes
towards the company’s products.
According to (Durmaz, 2014)Marketing starts with the needs of the customer and ends with his
satisfaction. When everything revolves around the customer then the study of consumer behavior
becomes a necessity. In the modern marketing, the customers have great options to select so
persuasion of the customers by the marketers has a vital impact on their buying. In order to
persuade the consumers, the marketers have to study the consumer behavior. The factors that
affect the consumer buying behavior are categorized as cultural factors, social factors, personal
factors and psychological factors. In this study, the psychological factors were investigated.
Consumer is the one who consumes the goods and services produced. As such, consumers play a
vital role in the economic system of a nation because in the absence of the effective demand that
emanates from them, the economy virtually collapses. Customer is a person, company, or other
entity which buys goods and services produced by another person, company, or other entity.
Consumer behavior might be the following: The mental, emotional and physical activities that
people engage in when selecting, purchasing, using and disposing of products and services so as
to satisfy needs and desires
A person can be motivated to buy a product for convenience, for style, for prestige, for self-pride
or being at par with others If the marketers know what creates motivation, they may be able to
develop marketing tactics to influence consumers’ motivation to think about, be involved with,
and/or process information about their brand
Marketers are interested in the beliefs that people formulate about specific products and services
because these beliefs make up product and brand images that affect buying behavior. If some of
the beliefs are wrong and prevent purchase, the marketer has to launch a campaign to correct
them.

(Deliya & Parmar, 2012) in their research paper discussed about packaging, according to them
package attracts consumer’s attention to particular brand, enhances its image, and influences
consumer’s perceptions about product. Also package imparts unique value to products, works as
a tool for differentiation, i.e. helps consumers to choose the product from wide range of similar
products, and stimulates customers buying behavior. Thus package performs an important role in
marketing communications and could be treated as one of the most important factors influencing
consumer’s purchase of package, its elements and their impact on consumer’s buying behavior
became a relevant issue.
Objectives of packaging
Packaging and package labeling have several objectives:
 Physical Protection
 Barrier Protection
 Information transmission
 Marketing

Chapter-4
Introduction of
Consumer
Buying
Behavior

Consumer behaviour is the study of how individuals, groups and organization select, buy, use
and dispose of goods, services, ideas, or experience to satisfy their needs and wants. Marketer
must understand theory and reality of consumer behaviour.
Consumer Buying Behaviour refers to the buying behaviour of the ultimate consumer.
A consumer’s buyer behaviour is influenced by four major factors:
These factors cause consumers to develop product and brand preferences. Although many of
these factors cannot be directly controlled by marketers, understanding of their impact is
essential as marketing mix strategies can be developed to appeal to the preferences of the target
market.
4 CONSUMER BUYING BEHAVIOUR- INTRODUCTION

When purchasing any product, a consumer goes through a decision process. This process
consists of up to five stages:
The length of this decision process will vary. A consumer may not act in isolation in the
purchase, but rather may be influenced by any of several people in various roles. The number of
people involved in the buying decision increases with the level of involvement and complexity of
the buying decision behaviour.
Consumer’s buyer behaviour and the resulting purchase decision are strongly influenced by
cultural, social, personal and psychological characteristics. An understanding of the influence of
these factors is essential for marketers in order to develop suitable marketing mixes to appeal to
the target customer.
CULTURAL factors include a consumer’s culture, subculture and social class. These factors are
often inherent in our values and decision processes.
SOCIAL factors include groups (reference groups, aspirational groups and member groups),
family, roles and status. This explains the outside influences of others on our purchase decisions
either directly or indirectly.

PERSONAL factors include such variables as age and lifecycle stage, occupation, economic
circumstances, lifestyle (activities, interests, opinions and demographics), personality and self
concept. These may explain why our preferences often change as our `situation' changes.
PSYCHOLOGICAL factors affecting our purchase decision include motivation (Maslow's
hierarchy of needs), perception, learning, beliefs and attitudes.
Other people often influence a consumer’s purchase decision. The marketer needs to know which
people are involved in the buying decision and what role each person plays, so that marketing
strategies can also be aimed at these people. 5
5
http://www.superprofesseur.com/19.html

Chapter-5
Research
Methodology

There is the specific title for any research activity. So, our title of the research is “A study on
Consumer Buying Behavior toward Namkeens in Ahmedabad city”
Main objective:-
To know whether company should introduce new product- namkeen or not
Sub-objectives:-
1. To know consumer buying behavior toward namkeens.
2. To find out the factors that affects the Customers buying behavior.
3. To find out the brands in namkeen which are consumed more.
We have used Descriptive research design, in which we take cross sectional research design.
(1) Primary Data:-
Primary data is the data that is collected for the first time and that is original in nature. We have
collected the primary data through the questionnaire.
(2) Secondary Data:-
We have obtained the secondary data from the internet, journals and old projects
5.1 TITLE OF THE RESEARCH
5.2 RESEARCH OBJECTIVE
5.3 RESEARCH DESIGN
5.4 SOURCES OF DATA

There are mainly two methods of primary data collection survey method and observation method. We
have used survey technique for data collection in our research.
Population for our study is the male and female consumers of namkeen.
We have used Non-probability sampling technique, in that convenience sampling is used in Project
report.
The sample for the research is taken only from Ahmedabad city.
The sample size of the survey is 250.
5.9 SAMPLE SIZE
5.8 SAMPLING FRAME
5.7 SAMPLING METHOD
5.6 POPULATION
5.5 DATA COLLECTION MEETHOD

We have chosen “Questionnaire” as a tool for primary data collection and “Internet access”
for the secondary data collection.
It Include:
 Multiple Choice Questions
 Open/Close Ended Question
 Nominal/ordinal/Likert Scale Question
 SPSS
 MS-EXCEL
A questionnaire is used as a data collection instrument for collecting the Primary data by
taking references of the different people.
 The time duration was limited to 6-8 weeks.
 The study is limited to Ahmedabad city only.
 The consumers may not follow what they have stated in their responses in the
questionnaire.
5.10 DATA COLLECTION INSTRUMENT
5.11 ANALYSIS TOOLS
5.12 LIMITATION OF THE STUDY

Chapter-6
Data Analysis
And
Interpretation

1. Do you purchase namkeen?
PARTICULARS FREQUENCY PERCENTAGE
YES 250 100
NO 0 0
TOTAL 250 100
INTERPRETATION:
The above chart reveals the all the people purchase namkeen. As namkeen is included in snacks
so everyone likes it and prefers to eat at anytime. Mostly the children and college students
purchase more namkeen.
100%
0%
Purchase Namkeen
YES NO

2. Which namkeen brand do you purchase? (Multiple-choice)
Balaji 250 100
Samrat 215 86
Gopal 182 73
ATOP 22 9
Haldiram 125 50
Real 78 31
Hariom 34 14
Avadh 26 10
Brink 24 10
Gokul 56 22
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
100%
86%
73%
9%
50%
31%
14% 10% 10%
22%
Percentage

INTERPRETATION:
The above chart indicates that as compared to other namkeen brand, Balaji brand is purchased by
all the people because the quality of balaji product is good as well as the packaging is also
attractive. Next preferred brand is Samrat and Gopal as the quality of Samrat is good and in
Gopal quantity is more. In case of Haldiram product though the quality is best but the price is
high so it is less preferred by the people. The percentage of ATOP, avadh and brink is less
because the quality of namkeen is not good.

3. Which type of namkeen do you prefer? (Multiple-choice)
Aloosev 212 85
Chana dal 175 70
Moong dal 116 46
Bhavnagariganthia 29 12
Faralichevdo 141 56
Sing bhujiya 190 76
Ratlamisev 139 56
Tikhaganthia 45 18
Sevmamra 75 30
Garlic sevmamra 83 33
Khattamitha mix 47 19
Vatana 34 14
0%
20%
40%
60%
80%
100%
85%
70%
46%
12%
56%
76%
56%
18%
30%
33%
19%
14%
Percentage

INTERPRETATION:
From the above chart, we can Say that the consumption of aloo sev is more as compared to other
namkeen because it is crunchy and less oily. After aloo sev, sing bhujiya and chana dal is
purchase by the people because it is spicy and those who like spicy namkeen that people prefer
more. Next the percentage of farali chevdo is more because it is more preferred in fast. The
percentage of bhavnagri ganthia and vatana is less because it is not preferred more by the
consumers.

4. Rank the following brand of namkeen according to your preference (1 to 10)
Rank Balaji Samrat Gopal ATOP Haldiram Real Hariom Avadh Brink Gokul
1 184 11 25 1 17 9 0 0 0 2
2 35 119 44 1 31 16 1 2 1 1
3 17 66 55 2 76 19 6 4 3 2
4 3 28 93 27 55 25 10 4 1 4
5 3 10 8 61 20 35 19 8 22 64
6 3 7 11 64 11 32 18 31 23 49
7 1 5 5 33 10 44 35 57 22 38
8 1 4 4 17 6 53 34 66 43 22
9 0 0 3 23 8 16 17 45 103 36
10 3 0 2 21 16 1 110 33 32 32
0
50
100
150
200
250
Series10
Series9
Series8
Series7
Series6
Series5
Series4
Series3
Series2
Series1

INTERPRETATION:
In the above table out of 250 consumers 184 have given 1st
rank to Balaji. It shows that
consumers more prefer namkeen of Balaji. Because the taste, quality is best as well as it is
available in less price. In addition to that Balaji offers namkeen even in small packaging size
which is 30 gm and 50 gm.After balaji consumers have given 2nd
rank to samrat because the
quality is good and it is less oily and tasty but it is not available in 30 gm packaging size
therefore consumers have given 2nd
rank to samrat. Avadh,brink and ATOP brands in namkeen is
also available in market but is not more purchased by the consumers because it’s quality is not
good.

5. Which factor do you consider while purchasing namkeen? (1= highly important
and 5=highly unimportant)
Factor 1 2 3 4 5 Mean S.D.
Price 202 32 2 10 4 1.33 0.819
Quality 195 45 2 3 5 1.31 0.738
Quantity 63 160 15 10 2 1.91 0.734
Taste 116 103 16 10 5 1.74 0.896
Brand 112 102 16 13 7 1.80 0.968
Easy availability 95 98 39 13 5 1.94 0.961
Packaging 84 118 24 12 12 2.00 1.030
Expiry date 87 110 24 22 7 2.01 1.026
Reference of
friends and
relatives
22 90 92 29 17 2.72 1.012
Advertisement 14 60 76 82 18 3.12 1.034
Promotional tools 21 104 70 33 22 2.72 1.079
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
1.33 1.31
1.91
1.74
1.80 1.94 2.00 2.01
2.72
3.12
2.72
Mean
Mean

INTERPRETATION:
From above chart, we conclude that the mean of price, quality and taste is less. It means these
three factors are most important factors for purchasing namkeen. Advertisement has highest
mean it means consumers don’t consider the advertisement factor for purchasing the product.
And after that reference of friends and promotional tools have highest mean.

6. Show your level of agreement for below mentioned statements. (SA=strongly
agree, A=agree, N= neither agree nor disagree, SD= strongly disagree)
Statements SA A N D SD Mean S.D.
Everyone likes namkeen 113 78 48 9 2 1.84 .915
I purchase namkeen from nearby area 147 81 14 5 3 1.54 .792
I consider freshness 156 65 19 7 3 1.54 .846
I use to purchase in bulk 48 112 43 37 10 2.40 1.079
I consider packaging of namkeen 94 99 38 13 6 1.95 .976
I consider taste of namkeen 118 88 25 12 7 1.81 .991
I buy same brand of namkeeneverytime 42 53 63 79 13 2.87 1.182
I always try new varieties in namkeen 31 149 42 18 10 2.31 .921
I prefer namkeen at tea time 43 68 102 29 8 2.56 1.009
Advertisement is less important for namkeen 33 124 56 27 10 2.43 .984
I consider size of shop 38 130 41 27 14 2.40 1.049
I consider display of shop 33 137 48 22 10 2.36 .955
I use to purchase packaged namkeen 41 62 48 92 7 2.85 1.169
I consider nature of retailer 49 138 45 15 3 2.14 .841
I consider varieties kept by retailer 49 141 40 15 5 2.14 .871
I am loyal with namkeen brand 42 43 61 93 11 2.95 1.181
I will buy immediately if a brand to which I
am loyal launch new namkeen
41 64 96 35 14 2.67 1.082
Company name with product brand helps in
making buying decision
44 123 47 26 10 2.34 1.014
Brand name and company name both are
equally important
52 143 33 16 6 2.12 .894
Other promotional efforts are less important
for namkeen
29 81 101 30 9 2.64 .961
If the new brand is available at discount, I
will buy the product
43 80 88 29 10 2.53 1.034
If the company is proven, I will try new brand
launched by the company
29 117 67 27 10 2.49 .970
I will be ready to experiment new brand , as I
believe in change
39 114 71 15 11 2.38 .967

INTERPRETATION:
From the above table we can conclude that consumers are not loyal with namkeen brand.
Because in the market there are different brands and varieties of namkeens are available so that
they have more option to choose. Mostly consumers considers nearby area, freshness and taste
factors for purchasing namkeens as its mean is lowest.

7. According to you what should be the packaging size of namkeen?
30 gm 88 35
50 gm 105 42
100 gm 57 23
200 gm 39 16
500 gm 40 16
1 kg 20 8
All 109 44
INTERPRETATION:
The above chart shows that consumers want all the packaging size which is mentioned above.
After that most demanded packaging size is 50 gm and 30 gm because it is in affordable price so
that everyone can purchase as well as this size of namkeen package is more purchased by school
as well as college students because they used to eat in snack. 100 gm and 200 gm packaging size
is not preferred more because in that more quantity is available so consumer alone can’t eat.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
30 gm 50 gm 100 gm 200 gm 500 gm 1 kg All
35%
42%
23%
16% 16%
8%
44%
Percentage

8. Are you aware about Ramdev Food Products Pvt. Ltd. which is producing different
spices and instant mix?
Yes 250 100
No 0 0
Total 250 100
INTERPRETATION:
All the consumers are aware about Ramdev Food Products Pvt. Ltd. because it is a very well-
known company in spices and instant mix product. And the product quality of the company is
very good.
100%
0%
Awareness about Ramdev
Yes
No

9. If Ramdev launches new product- namkeen would you like to purchase?
Yes 175 70.0
No 75 30.0
Total 250 100.0
INTERPRETATION:
We can conclude that 70% of consumers wants that company should launch new product-
namkeen and the remaining that is 30% of consumers said no, the reason behind this is difficult
to attract the consumers because in market there are different brands and varieties of namkeen
are available.
70%
30%
Readiness of people to buy the new
product-namkeen
Yes
No

11. If your answer is no in Q-9, please specify the reason for that
Reason Frequency
Competition is more 1
All varieties of namkeens are available 2
Satisfied with the existing namkeen varieties 5
Difficult to attract the customers 58
Less profit margin 9
Large distribution channel 0
INTERPRETATION:
Consumers who have said no they indicate the reason behind this, if company introduce the
namkeen product there will be difficult for the company to attract the consumers because the
existing companies in namkeen have already captured the market.
0
10
20
30
40
50
60
Frequency
Frequency

DEMOGRAPHIC PROFILE OF RESPONDENT
1) GENDER
GENDER FREQUENCY PERCENTAGE
Male 154 61.6
Female 96 38.4
Total 250 100.0
INTERPRETATION:
The above chart shows that male purchase more namkeen as compared to females. Because
females are more price sensitive as compared to male.
62%
38%
Gender
Male
Female

2) AGE
AGE FREQUENCY PERCENTAGE
Less than 20 years 43 17.2
21-30 173 69.2
31-40 17 6.8
41-50 15 6.0
More than 50 years 2 .8
Total 250 100
INTERPRETATION:
From the above chart we can conclude that consumers are more purchasing the namkeen in the
age group of 21-30. Because college students are falling in this group. They purchase more
namkeen as they used to eat in snacks.
0
20
40
60
80
100
120
140
160
180
Less Than
20 Years
21 - 30 31 - 40 41 - 50 More
Than 50
Years
Age
Frequency

3) OCCUPATION
OCCUPATION FREQUENCY PERCENTAGE
Service 52 20.8
Housewife 33 13.2
Business 22 8.8
Student 143 57.2
Total 250 100
INTERPRETATION:
Above data indicates that the frequency of student in more as compared to the other occupation
because they purchase more snack products.
0
20
40
60
80
100
120
140
160
Service Housewife Bussiness Student
Occupation
Frequency

4) MONTHLY FAMILY INCOME
INCOME FREQUENCY PERCENTAGE
Less than 15000 33 13.2
15001 - 30000 117 46.8
30001 - 45000 88 35.2
45001-60000 9 3.6
More than 60000 3 1.2
Total 250 100
INTERPRETATION:
15001-30000 family income respondents are more prefer namkeen and less than 15000 family
income respondents are less prefer the namkeen products because they spend less money on
namkeen product.
0
20
40
60
80
100
120
Less Than
15000
15001 -
30000
30001 -
45000
45001 -
60000
More
Than
60000
Monthly Family Income
Frequency

5) EDUCATION
EDUCATION FREQUENCY PERCENTAGE
Less than HSC 10 4.0
HSC 53 21.2
Graduate 114 45.6
Post Graduate 73 29.2
Total 250 100
INTERPRETATION:
From above chart, we can say that graduate people are most preferred namkeenand the frequency
of less than HSC is less because they don’t know more about the scales used in this survey.
0
20
40
60
80
100
120
Less Than
H.S.C
H.S.C Graduate Post
Graduate
Education
Frequency

Chapter-7
Inferential
Statistics

INTERPRETAION:
Cronbach's Alpha is used to measure the reliability of the data. Data having value 0.60 is
considered as reliable. When we consider all the factors the reliability is 0.501 which is less than
the standard measure so that we have excluded some of the factors which is reference of friends,
advertisement and promotional tools and then the reliability is 0.612 which is more than the
standard measure. It means that after excluding the above three factors scale is reliable for the
further study.
Cronbach's Alpha N of Items
0.612 8
Cronbach's Alpha
if Item Deleted
Price 0.658
Quality 0.551
Quantity 0.598
Taste 0.569
Brand 0.548
Easy Availability 0.567
Packaging 0.534
Expiry date 0.583
7.1 RELIABILITY STATISTICS

Sr.
No.
Null Hypothesis F-Stat. df P-Value Result
H01 There is no significance difference regarding freshness
factor and the different age group.
4.764 4,245 0.001 Reject
Interpretation:
Here P value is less than 0.05 i. e. 0.001 < 0.05, so null
hypothesis is rejected. It means that there is significance
difference regarding freshness factor and the different age
group.
H02 There is no significance difference regarding freshness
factor and the different income group.
4.245 4,245 0.002 Reject
Interpretation:
Here P value is less than 0.05 so here null hypothesis is
rejected. Hence there is significance difference regarding
freshness factor and the different income group.
H03 There is no significance difference in level of importance
regarding price between different occupation groups.
2.224 3,246 0.086 Accept
Interpretation:
Here P value is more than 0.05 that is 0.086. So null
hypothesis is accepted. It means there is no significance
difference in level of importance regarding price between
different occupation groups.
7.2 ANOVA

regarding price between different income groups.
0.537 4, 245 0.709 Accept
Interpretation:
In this P value is more than 0.05. Hence null
hypothesis is accepted. It means there is no
significance difference in level of importance regarding
price between different income groups.
regarding quality between different occupation groups.
0.508 3,246 0.677 Accept
Interpretation:
hypothesis is accepted. It means there is no significance
difference in level of importance regarding quality
between different occupation groups.
regarding quality between different income groups.
4.990 4, 245 0.001 Reject
Interpretation:
In this P value is less than 0.05 (0.001 < 0.05) so null
hypothesis will get rejected. So There is significance
difference in level of importance regarding quality
between different income groups.

H07 There is no significance difference in level of
importance regarding quality between different
education groups.
1.474 3,246 0.222 Accept
Interpretation:
significance difference in level of importance
regarding quality between different education groups.
importance regarding Taste between different age
groups.
10.178 4, 245 0.000 Reject
Interpretation:
Here P value is less than 0.05. so null hypothesis is
rejected. Hence there is significance difference in
level of importance regarding Taste between different
age groups.
importance regarding Taste between different
occupation groups.
3.950 3, 246 0.009 Reject
Interpretation:
Here P value is less than 0.05 which is 0.009, so null
hypothesis is rejected. Hence there is significance
difference in level of importance regarding Taste
between different occupation groups.

H010 There is no significance difference regarding quantity
between different age groups.
7.407 4, 245 0.000 Reject
Interpretation:
Here P value is less than 0.05 that is 0.000. so null
hypothesis is rejected. Hence there is significance
difference regarding quantity between different age
groups.
factor while purchasing namkeen and monthly family
income.
0.458 4, 245 0.767 Accept
Interpretation:
significance difference regarding quantity factor while
purchasing namkeen and monthly family income.
factor while purchasing namkeen and occupation
group.
5.913 3, 246 0.001 Reject
Interpretation:
Here P value is less than 0.05. So null hypothesis is
rejected. Therefore There is significance difference
regarding quantity factor while purchasing namkeen
and occupation group.

H013 There is no significance difference regarding brand
factor while purchasing namkeen and monthly family
income group.
2.358 4, 245 0.054 Accept
Interpretation:
Here P value is more than 0.05. So null hypothesis is
rejected. Therefore There is no significance difference
regarding brand factor while purchasing namkeen and
monthly family income group.
factor while purchasing namkeen and occupation
group.
1.144 3, 246 0.332 Accept
Interpretation:
In this P value is more than 0.05 (0.332 > 0.05) so
null hypothesis is accepted. Hence there is no
significance difference regarding brand factor while
purchasing namkeen and occupation group.
factor while purchasing namkeen and education
group.
1.180 3, 246 0.318 Accept
Interpretation:
Here P value is more than 0.05. so null hypothesis
is accepted. Therefore there is no significance
difference regarding brand factor while purchasing
namkeen and education group.

importance regarding size of shop between different
age groups.
3.584 4,245 0.007 Reject
Interpretation:
Here P value is less than 0.05 that is 0.007. So
null hypothesis is rejected. Hence there is
regarding size of shop between different age groups.
occupation groups.
6.492 4, 245 0.000 Reject
Interpretation:
Here P value is less than 0.05. So null hypothesis
will get rejected. Hence there is significance
difference in level of importance regarding size of
shop between different occupation groups.
monthly family income groups.
2.076 3, 246 0.104 Accept
Interpretation:
Here P value is more than 0.05. So null
hypothesis will get accepted. Hence There is no
regarding size of shop between different monthly
family income groups.

importance regarding varieties of namkeen between
different age groups.
0.746 4, 245 0.562 Accept
Interpretation:
regarding varieties of namkeen between different age
groups.
different income groups.
0.181 4, 245 0.948 Accept
Interpretation:
regarding varieties of namkeen between different
income groups.
different occupation groups.
3.132 3, 246 0.026 Reject
Interpretation:
Here P value is less than 0.05. So null hypothesis
will get rejected. Hence There is significance
difference in level of importance regarding varieties of
namkeen between different occupation groups.

H0: Level of agreement regarding freshness factor for males and females are equal.
H1: Level of agreement regarding freshness factor for males and females are not equal.
Levene's Test for
Equality of
Variances
t-test for Equality of Means
F Sig. t Df Sig. (2-tailed)
I consider
freshness
Equal variances
assumed
.626 .430 .649 248 .517
Equalvariances
not assumed
.660 212.860 .510
INTERPRETATION:
Here calculated value is more than 0.05 so null hypothesis is accepted. Hence Level of
agreement regarding freshness factor for males and females are equal. It means there is no
significant difference regarding freshness factor between different gender groups.
7.3 INDEPENDENT SAMPLE T-TEST

H0: Level of importance regarding quality factor for males and females are equal.
H1: Level of importance regarding quality factor for males and females are not equal.
Levene's Test for
Equality of
Variances
F Sig. T df
Sig.(2-tailed)
Quality Equal variances
assumed
24.962 .000 2.666 248 .008
Equal variances
not assumed
3.149 221.587 .002
INTERPRETATION:
Here calculated value is less than 0.05 that is 0.008<0.05. So null hypothesis is rejected. Hence
level of importance regarding quality factor for males and females are not equal. It means there
is significant difference regarding quality factor between different gender groups.

H0: Level of importance regarding taste factor for males and females are equal.
H1: Level of importance regarding taste factor for males and females are not equal.
Levene's Test for
Equality of
Variances
F Sig. t Df Sig.(2-tailed)
Taste Equal variances
assumed
6.705 .010 2.498 248 .013
Equal variances
not assumed
2.737 247.133 .007
INTERPRETATION:
Here calculated value is less than 0.05 that is 0.013<0.05. So null hypothesis is rejected. Hence
Level of importance regarding taste factor for males and females are not equal. It means there is
significant difference regarding taste factor between different gender groups.

KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.686
Bartlett's Test of Sphericity Approx. Chi-Square 255.325
df 55
Sig. 0.000
The Kaiser-Meyer-Olkin Measure of Sampling Adequacy is a statistic that indicates the
proportion of variance in your variables that might be caused by underlying factors. Bartlett's test
of sphericity stests the hypothesis that your correlation matrix is an identity matrix, which would
indicate that your variables are unrelated and therefore unsuitable for structure detection.
High values (close to 1.0) generally indicate that a factor analysis may be useful with your data.
If the value is less than 0.50, the results of the factor analysis probably won't be very useful. Here
in our case KMO is 0.686 that is 0.686 > 0.50 which indicates the scale is appropriate and helps
in extracting the factor. In Bartlett's Test of Sphericity, Small values (less than 0.05) of the
significance level indicate that a factor analysis may be useful with the data.
7.4 FACTOR ANALYSIS

Variables Component Factors
Packaging 0.707 Core factors
Brand 0.613
Easy Availability 0.606
Quality 0.6
Taste 0.531
Expiry date 0.444 Competitive factor
Price 0.837
Reference of friends 0.806 Attractiveness factor
Quantity 0.499
Advertisement 0.811 Promotion factor
Promotional tools 0.613
Four factors which are most important factor from above table are (1) Core Factor, (2)
competitive factor (3) attractiveness factor (4) promotion factor
It is clear from the above analysis that core factors consumer considers most while purchasing
namkeen which includes Packaging, Brand, Easy Availability, Quality, and Taste. As far as the
namkeen is concern expiry date and price plays an important role in purchasing decision that
covers into competitive factor. Reference of friends and quantity fall in attractiveness factor
because if there is more quantity available more consumers will attract to buy namkeen. Lastly
the promotion factor which includes advertisement and promotional tools.

Brand * Education Cross tabulation
Education
TotalLess Than
H.S.C
H.S.C Graduate Post
Graduate
Brand Highly important 1 23 58 30 112
Important 6 20 43 33 102
Neutral 2 4 3 7 16
Unimportant 1 5 4 3 13
Highly unimportant 0 1 6 0 7
Total 10 53 114 73 250
INTERPRETATION:
In the above table column represent education and row represent brand. Out of 250 consumers,
112 consumers are such for whom brand is highly important. The education group of these
consumers is graduate. Because the graduates and post graduates consumers are more conscious
about brand. Consumers who fall in less than H.S.C. category they are not much aware about
what is brand. So they cannot understand whether brand is highly important or highly
unimportant. The overall conclusion is that brand is important factor which is considered while
purchasing namkeen.
7.5 CROSS TABULATION

Quantity * Occupation Cross tabulation
Occupation Total
Service Housewife Business Student
Quantity Highly
important
24 9 13 17 63
Important 21 23 8 108 160
Neutral 4 1 0 10 15
Highly
unimportant
0 0 1 1 2
Total 52 33 22 143 250
INTERPRETATION:
In the above table column represent occupation and row represent quantity. There are more
consumers who fall in student group that is 143 out of 250. Out of 143 consumers 108 has said
that quantity is important which is considered while purchasing namkeen. Only two consumers
have said no, as for different consumers factor consideration is different. For example for some
consumers price is more important as compared to quantity.

Taste * Age Cross tabulation
Age Total
Less
Than 20
Years
21 - 30 31 - 40 41 – 50 More
Than 50
Years
Taste Highly
important
13 85 10 7 1 116
Important 11 77 7 8 0 103
Neutral 9 7 0 0 0 16
Unimportant 8 2 0 0 0 10
Highly
unimportant
2 2 0 0 1 5
Total 43 173 17 15 2 250
INTERPRETATION:
In the above table column represent age and row represent taste. Out of 250 consumers 173
consumers fall in 21-30 age groups. In that 85 consumers have said that taste is highly important
for purchasing namkeen as compared to the other age group. Consumers in the age group of 21-
30 mostly compare the taste of namkeen of different company and purchase namkeen of that
company whose taste is good.

I consider packaging of namkeen * Age Cross tabulation
Age Total
Less Than
20 Years
21 -
30
31 - 40 41 - 50 More Than
50 Years
I consider
packaging of
namkeen
Strongly
agree
16 68 6 4 0 94
Agree 9 71 10 7 2 99
Neither
agree nor
disagree
10 25 1 2 0 38
Disagree 4 8 0 1 0 13
Strongly
disagree
4 1 0 1 0 6
Total 43 173 17 15 2 250
INTERPRETATION:
Different consumers consider different factor while purchasing namkeen. For some consumers
price and quality is more important and for some consumer quantity, brand, and taste is
important. Here in the above table we have taken packaging and age factor for comparison.
Column represent age and row represent packaging of namkeen. Out of 250 consumers 99
consumers are agree with the statement (I consider packaging of namkeen). In that more
consumers fall in the age group of 21-30. It means packaging is also one of the important factor
for purchasing namkeen.

I consider varieties kept by retailer * Age Cross tabulation
Age Total
Less
Than 20
Years
21- 30 31 - 40 41 – 50 More
Than 50
Years
I consider
varieties kept
by retailer
Strongly
agree
16 25 4 3 1 49
Agree 11 115 10 5 0 141
Neither agree
nor disagree
10 23 2 5 0 40
Disagree 5 7 1 1 1 15
Strongly
disagree
1 3 0 1 0 5
Total 43 173 17 15 2 250
INTERPRETATION:
In the above table column represent age and row represent varieties kept by retailer. Out of 250
consumers 141 are agree with the statement that they consider varieties for purchasing namkeen.
These consumers fall in the age group of 21-30. They prefer to buy from the retailer who kept
more varieties in namkeen.

Price * Occupation Cross tabulation
Occupation
Total
Service Housewife Business Student
Price Highly important 44 24 16 118 202
Important 5 8 3 24 40
Neutral 0 0 1 1 2
Total 52 33 22 143 250
INTERPRETATION:
Price is most important factor which is considered by consumers while purchasing any product.
Out of 250 consumers there are 143 consumers who fall in student. Out of this for 118
consumers price is highly important for purchasing namkeen. As for student there are many
expenses so they cannot purchase namkeen at high price. Mostly they purchase namkeen at Rs. 5
or 10. So for them price is highly important factor.

All the consumers purchase namkeen.
Price, quality and taste are the very important factors which the consumers consider while
purchasing namkeen.
Balaji namkeen is more purchased by the consumers.
Consumers more prefer aloo sev, sing bhujiya , farali chevdo and chana dal.
In survey we have found that consumers have given 1st
rank to Balaji namkeen.
Advertisement factor is less considered while purchasing namkeen.
All consumers are aware about Ramdev Food Products Pvt. Ltd.
70% of the consumers wants that company should launch new product-namkeen.
Consumers want all the packaging size in namkeen.
Difficulty to attract the consumers is the main reason given by the consumers who has said
no.
FINDINGS

As 70% of consumers have said yes for launching the new product-namkeen, company
should launch the new product namkeen because it will be a new product line for the
company.
Company should study the strategies of its competitors and also the products offered by
them before launching the new product.
If company launches new product-namkeen the packaging size should be 30 gm and 50
gm because it is more preferred by the consumers.
Company should use the promotional tools like free items in packets like tattoos, small
toys, stickers for promoting its namkeen brand.
Company should offer the various types of namkeen like aloo sev, sing bhujiya, chana
dal, and farali chevdo.
Company should select childrens as target market. Later on they can target youngsters.
Company should focus more on price, quality and taste factors as it is highly important
factor for purchasing namkeen.
SUGGESTIONS

The overall conclusion of the project is that company should launch new product namkeen as in
survey 70% consumers have said yes because they think that they might get some new varieties
in namkeen which is not offered by the existing snack manufacturing company.
Now a day, there are many snack manufacturing companies which are competing each other in
terms of quality, quantity and price. So it will be somewhat difficult for the company to attract
the consumers, but if company focus on quality and taste factor and use the promotional tools
like free items in the packet then it can be successful. Everyone knows about Ramdev Food
Product Pvt. Ltd. as it is a well-known company in spice world and offers quality product so
consumer will be easily ready to trust on the quality of namkeen offered by Ramdev.
CONCLUSION

Deliya, M. M., & Parmar, M. B. (2012). ROLE OF PACKAGING ON CONSUMER BUYING BEHAVIOUR. Global
journal of Management and Business Research , 49-67.
Durmaz, Y. (2014). THE IMPACT OF PSYCHOLOGICAL FACTORS ON CONSUMER BUYING BEHAVIOR. Asian
Social Science .
Leila Haghshenas, A. A. (2013). "REVIEW CONSUMER BEHAVIOR AND FACTORS AFFECTING ON
PURCHASING DECISIONS". SINGAPOREAN JOURNAL OF BUSINESS ECONOMICS AND MANAGEMENT
STUDIES , 17-24.
Yakup, D. D., & Jablonsk, D. S. (2012). "INTEGRATED APPROACH TO FACTORS AFFECTING CONSUMER
PURCHASE BEHAVIOUR". Global Journal of Management and Business Research .
BOOKS
“Marketing Management” by Philip Kotler, Kevin Lane Keller, Abraham Koshy & Mithileshwar
Jha, Published by Dorling Kindersley (India) Pvt. Ltd., Thirteenth Edition
“Business Statistics” by Ken Black, Published by Wiley India, Fifth Edition
WEBSITE
www.ramdevfood.com
www.ibef.org
www.mbaskool.com
www.business-standard.co
BIBLIOGRAPHY

QUESTIONNAIRE
Dear Respondent,
We are the students of MBA programme of S. V. Institute of Management, Kadi. We are doing
research on a topic "A Study on Consumer Buying Behavior toward Namkeens" as a part of
Summer Internship Project. We ensure that the information provided by you will be kept
confidential and will be used for academic purpose only.
1. Do you purchase namkeen?
Yes No
2. Which namkeen brand do you purchase? (Multiple-choice)
Balaji Haldiram Brink
Samrat Real Gokul
Gopal Hariom Others pl. sp……………….
ATOP Avadh
3. Which type of namkeen do you prefer? (Multiple-choice)
Aloo Sev Farali Chevdo Sev Mamra
Channa Dal Sing Bhujiya Garlic Sev Mamra
Moong Dal Ratlami Sev Khatta Mitha Mix
Bhavnagari Ganthia Tikha Ganthia Vatana
Others pl. sp……………….

4. Rank the following brand of namkeen according to your preference (1 to 10)
Balaji Haldiram Brink
Samrat Real Gokul
Gopal Hariom
ATOP Avadh
5. Which factor do you consider while purchasing namkeen? ( 1= Highly important)
Factor 1 2 3 4 5
Price
Quality
Quantity
Taste
Brand
Easy availability
Packaging
Expiry date
Reference of
friends and
relatives
Advertisement
Promotional tools

6. Show your level of agreement for below mentioned statements.
Statements
Strongly
agree
Agree Neither
agree nor
disagree
Disagree Strongly
disagree
Everyone likes namkeen
I purchase namkeen from nearby area
I consider freshness
I use to purchase in bulk
I consider packaging of namkeen
I consider taste of namkeen
I buy same brand of namkeen everytime
I always try new varieties in namkeen
I prefer namkeen at tea time
Advertisement is less important for namkeen
I consider size of shop
I consider display of shop
I use to purchase packaged namkeen
I consider nature of retailer
I consider varieties kept by retailer
I am loyal with namkeen brand
I will buy immediately if a brand to which I
am loyal launch new namkeen
Company name with product brand helps in
making buying decision
Brand name and company name both are
equally important
Other promotional efforts are less important
for namkeen
If the new brand is available at discount, I
will buy the product
If the company is proven, I will try new brand
launched by the company
I will be ready to experiment new brand , as I
believe in change

7. According to you what should be the packaging size of namkeen?
50 gm 200gm 1kg
100gm 500gm All
8. Are you aware about Ramdev Food Products Pvt. Ltd. which is producing different
spices and instant mix?
Yes No
9. If Ramdev launches new product- namkeen would you like to purchase?
Yes No
10. If yes, which type of varieties would you like to have in Ramdev namkeen?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………

11. If your answer is no in Q-9, please specify the reason for that
Reason Use ‘√’ to indicate reason
Competition is more
All varieties of namkeens are available
Satisfied with the existing namkeen varieties
Difficult to attract the customers
Less profit margin
Large distribution channel
12. Would you like to give any suggestions to the company related to new product idea?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
……………………………………………………………………………………………………....

Demographic Detail
Name : …………………………………………………
Address: ……………………………………………….
Contact number: ………………………………………
Gender
Male Female
Age Monthly family income
Less than 20 years Less than 15000
21-30 15001-30000
31-40 30001-45000
41-50 45001-60000
More than 50 years More than 60000
Occupation Education
Service Less than H.S.C.
Housewife H.S.C
Business Graduate
Student Post Graduate
Thanks for giving your valuable time

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