AN ANALYSIS OF MARKETING MIX- A CASE STUDY OF COPSY COFFEE

Transcription

1 AN ANALYSIS OF MARKETING MIX- A CASE STUDY OF COPSY COFFEE HAWALDAR SUHAS MAHADEO MBAL-0008 DEPARTMENT OF AGRICULTURAL MARKETING CO-OPERATION AND BUSINESS MANAGEMENT UNIVERSITY OF AGRICULTURAL SCIENCES BANGALORE

2 An Analysis of Marketing Mix- A Case Study of Copsy Coffee Hawaldar Suhas Mahadeo MBAL-0008 Project Report submitted to the University of Agricultural Sciences, Bangalore in partial fulfillment of the requirements for the degree of Master of Business Administration in Agri Business Management Bangalore November, 2012

3 Affectionately dedicated To My Beloved Parents, Hawaldar Family, Hanchinalkars, My Teachers And My Guide DEPARTMENT OF AGRICULTURAL MARKETING, CO- OPERATION AND BUSINESS MANAGEMENT, UAS, GKVK, BANGALORE

4 CERTIFICATE This is to certify that the Project Report entitled, An Analysis of Marketing Mix- A Case Study of Copsy Coffee submitted by Mr. Hawaldar Suhas Mahadeo, ID NO. MBAL0008 in partial fulfillment of the requirement for the degree of MASTER OF BUSINESS ADMINISTRATION (Agribusiness Management) to the University of Agricultural Sciences, Bangalore, is a record of bonafide research work done by him during the period of his study in this University under my guidance and supervision and the project report has not previously formed the basis for the award of any degree, diploma, associateship, fellowship or other similar titles. Bangalore August, 2012 Mr. T.N. VENKATA REDDY MAJOR ADVISOR APPROVED BY: Chairman: Members: Mr. T. N. Venkata Reddy Dr. G. N. Nagaraja Dr. P. K. Mandanna Dr. K. B. Umesh Dr. M. N. Venkataramana

5 ACKNOWLEDGEMENT I humble place before the throne of the Almighty, my most sincere gratitude. His grace and tender mercies have renewed me every moment, all the way on the journey through my life. With immense pleasure and deep respect, I express my heartfelt gratitude to the chairman of my advisory committee, Mr. T. N. Venkata Reddy, Associate Professor, Dept. Agricultural Marketing, co-operation and business management, of UAS, GKVK, Bangalore, for his excellent guidance, constant support, close counsel and valuable suggestions. His enthusiasm, interest, concern, perfection and constructive criticism have always aroused my spirits to do more, to achieve higher. I am overwhelmed with sincere feeling of indebtedness to the member of my advisory Committee Dr. G. N. Nagaraja, Professor and head, Dept. Agricultural Marketing, co-operation and business management, of UAS, GKVK, Bangalore, for his precious guidance, creative comments and encouragement throughout the period of study. I am immensely thankful to Dr. P. K. Mandanna, Professor and University head ABM, Dept. of Agricultural Marketing, co-operation and business management, UAS, GKVK, Bangalore, for his subtle guidance and prodigious help throughout my research period. I am profoundly grateful to Dr. K. B. Umesh, Professor, Dept. of Agricultural Economics, UAS, GKVK, Bangalore, for his precious guidance, creative ideas and encouragement throughout the period of study. I express my deep sense of reverence to Dr. M. N. Venkataramana, Assistant Professor, Dept. of Agricultural Economics, UAS, GKVK, Bangalore, for his kind co-operation and constructive suggestions during my thesis work. I greatly acknowledge the cooperation and help extended by my teachers Dr. M. R. Girish, Dr. B. M. Shashidhara, Dr. B. M. R. Reddy, Dr. C. P. Gracy, Dr. M. S. Ganapathy, Dr. M. S. Jayaram, Dr. T. R. Keshava reddy and Mr. P. V. Ramegowda Department of Agricultural Marketing, Co-operation & Business Management, University of Agricultural Sciences, GKVK, Bengaluru for their valuable suggestions and support during the course of investigation.

6 I desire to express my reverential thanks to my parents Mr. Mahadev and Mrs. Anandi, my brother Mr. Sagar, Sister in law Mrs. Manisha, my sister Ms. Smita, Brother in law Mr. Amardeep, All members of Hawaldar Family, relatives, Every teacher who taught me and Hanchinalkars for their invariable encouragement during the course of my study. I wish to place on my respect for the members and office bearers of Copsy Coffee, Respondents from Hassan, Mysore and Bangalore cities for their kind respond and cooperation during data collection without them my project would be incomplete. I greatly acknowledge the cooperation and help extended by my all ABM seniors, juniors and batchmates specially Vivek, Sandy Prashant, Shivu, Kishore, Manja, Bharath, Varma and Vini Friendship is the most important ingredient in the recipe of life and it adds more flavor to life. I desire to express my thanks to my friends Shiva, Uttam, Vikas, Vinod, Shankar, Sharad, Pavan, Prashant, Sachin, Santosh, Ramdas, Bajirav, Sandip, Amol, Dhanaji, Bantya, Mantya, Appa, Prakash, My seniors Satish, Bharat, Maruti, Shashi, Abhi Powade,Aarya, Raj, Shiva, Prasanna, Nag, Tips, Chou, Chetan, Amit, Chandru, Viru, Shetty, Harti, Manju, Bandi, Umesh, Siddram, Bhushan, Vikki, Shrinidhi, Shrikant My UG mates Guru, Chetan, Viresh, Bijjur, Shivu, Stephan, Shankar, Teja, Swami, Tarun, Mahantesh, Gajendra, Sugs, Kotresh, Panchal, Umesh, Basu, Pamya, Prashant, Bijjur, Jaweed, Vinay, KK, Kerur, Yogesh and Juniors Vasu, Shina, Raghya, Kiran, Basu, Suresh, Gulled, Pradip Guru, Kumar, Nagraj, Malli, Dikshith, Pramod, Shivaraj and Manju, Thanks to all my dear ones who indirectly helped and encouraged me in each and every moment during my post graduation and they deserve a more personal note of gratitude. I am thankful to all non staff members of Department Of Agricultural Marketing, Cooperation and Business Management for their help in completing this study. Bangalore November, 2012 (Hawaldar Suhas Mahadeo)

7 An Analysis of Marketing Mix- A Case Study of Copsy Coffee Hawaldar Suhas Mahadeo Abstract Coffee is the most popular beverages with over 400 billion cups consumed yearly. There are many brands in coffee business offering range of products as Instant coffee, conventional coffee etc. based on varied and distinct taste of consumers. Bru, Green Label, Nescafe, Cothas etc. are national level brands and few local brands are also present. Copsy Coffee is a local brand promoted by Arehally Coffee Growers Co-operative Society. The present study was conducted to analyse the marketing mix of the Copsy Coffee. The Data was collected from 180 consumers from Hassan, Mysore and Bangalore city using pre tested structured schedule. The brand was launched with much fan fare by endorsing film star Puneeth Rajkumar. Advertisement through TV followed by leaflets was well received by consumers. The society not adopted any sales, pricing and distribution strategies. Taste is the most important factor followed by brand name that influences a consumer s brand preference decision and women are the decision maker in the preference of coffee brands. The vast majority of consumers liked taste of Copsy Coffee as most preferred trait, quality as excellent, price as on par with market, rating the overall brand as an excellent. The farmers owned and managed brand lacks business perceptive and well aggressive marketing strategies. The society needs to engage the consultancy services or experienced persons for business solutions and effective promotion of Copsy Coffee, to explore the possibility of expansion. Hawaldar Suhas Mahadeo T. N. Venkata Reddy Major advisor

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9 CONTENTS CHAPTER No. TITLE PAGE No. I INTRODUCTION II REVIEW OF LITERATURE III METHODOLOGY IV RESULTS V DISCUSSIONS VI SUMMARY AND POLICY IMPLICATIONS VII REFERENCES

10 Table No. 4.1 Consumer profile LIST OF TABLES Title Page No. 4.2 Type of family of the sample respondents 4.3 Awareness of coffee brands by sample respondents 4.4 Purchase decision of coffee powder in the family 4.5 Frequency of the purchasing coffee powder Preference of store format for the coffee powder purchase Media source of advertisement and awareness about different brands of coffee powder 4.8 Brand preference of non Copsy coffee consumers 4.9 Second preference of brand by consumers in case of unavailability of the preferred brand 4.10 Source of awareness about the Copsy coffee brand 4.11 Copsy coffee s quality rating by consumers 4.12 Rating of Copsy coffee s price by consumers 4.13 Rating of Copsy Coffee s packaging by consumers Copsy coffee consumer s awareness about the declaratory label 4.15 Overall rating of Copsy coffee brand Satisfaction level of Copsy coffee consumer Copsy coffee consumer s recommendation to the others 4.18 Copsy coffee consumer preference of coffee brand attributes 4.19 Non Copsy coffee consumer preference of coffee brand attributes

11 Table No. LIST OF FIGURES Title Page No. 3.1 Map of Karnataka state showing study area. 4.1 Type of family of the sample respondents 4.2 Awareness of coffee powder brands by sample respondents 4.3 Purchase decision of coffee powder in the family Frequency of the purchasing coffee powder Preference of the store format for the coffee powder purchase 4.6 Media source of advertisement and awareness about different brands of coffee powder 4.7 Brands preference of non Copsy coffee consumers 4.8 Second preference of brand by consumers in case of unavailability of the preferred brand 4.9 Source of awareness about the Copsy coffee brand 4.10 Copsy coffee s quality rating by consumers 4.11 Rating of Copsy Coffee s price by consumers Rating of Copsy coffee s packaging by consumers Copsy coffee consumer s awareness about the declaratory label on the package 4.14 Overall rating Copsy coffee brand Satisfaction level of Copsy coffee consumer Copsy coffee consumer s recommendation to the others

12 INTRODUCTION

13 CHAPTER I INTRODUCTION Coffee is a beverage that puts one to sleep when not drank. - Alphonse Allais. Coffee is the second most traded commodity next to petroleum products in the world. Coffee occupies a place of pride among plantation crops grown in India. It is the most important cash crop that is grown in the tropics. Coffee is the preferred drink in Europe and America. Until the early eighteenth century, coffee production and consumption was confined to the Islamic countries but European traders altered this pattern dramatically. The present pattern of coffee consumption is influenced by per capita income. 1.1 History of Coffee According to a coffee history legend, an Arabian shepherd named Kaldi found his goats dancing joyously around a dark green leafed shrub with bright red cherries in the southern tip of the Arabian Peninsula. Kaldi soon determined that it was the bright red cherries on the shrub that were causing the peculiar euphoria and after trying the cherries himself, he learned of their powerful effect. The stimulating effect was then exploited by monks at a local monastery to stay awake during extended hours of prayer and distributed to other monasteries around the world and so Coffee was born. Despite the appeal of such a legend, recent botanical evidence suggests a different coffee bean origin. This evidence indicates that the history of the coffee bean began on the plateaus of central Ethiopia and somehow must have been brought to Yemen where it was

14 cultivated since the 6 th century. Upon introduction of the first coffee houses in Cairo and Mecca coffee became a passion rather than just a stimulant. 1.2 Production of Coffee The world coffee production in the coffee year is estimated to be 130 million bags (60 kg per bag) which will be around 7.8 million tonnes, as per estimation report by International Coffee Organisation (ICO). Robusta crop in Brazil is expected to increase by 1.8 million bags to a record production of 14.5 million bags on account of favourable weather and good crop management, while the Arabica crop is estimated to drop by 7.1 million bags to form a total production of 34.7 million bags, during the off-year of the biennial cycle. The production of the brew in Vietnam is expected to increase by 1.9 million bags to 20.6 million bags on the back of timely rains that resulted in good flowering and fruit setting, the report added. Coffee production in India is dominated in the hill tracts of South Indian states; Karnataka accounting 53 per cent followed by Kerala 28 per cent and Tamil Nadu 11 per cent of production of 8,200 tonnes. Indian coffee is said to be the finest shade grown coffee in the world. There are approximately 250,000 coffee growers in India; 98 per cent of them are small growers. India is the sixth largest producer of coffee after Brazil, Vietnam, Colombia, Indonesia, and Ethiopia. With two per cent share in global area under coffee, India contributes about four per cent to world coffee production as well as international trade. Coffee is cultivated in an area about four lakh ha primarily in the southern states of Karnataka, Kerala, and Tamil Nadu. Presently consumption in the country is over one lakh tonnes and India produces about three lakh tonnes of coffee comprising both Arabica (32 per cent) and Robusta (68 per cent) coffee. The country s coffee production reached a high of 3.02 lakh tonnes during and is expected to touch an all-time record

15 production of 3.22 lakh tonnes during , an increase of 6.7 per cent over production. Indian coffee is primarily an export oriented commodity with about 70 per cent of production being exported. Karnataka contributes a substantial 53 per cent in India's coffee production. For , the coffee board has estimated the production at 3, 22,250 tonnes, which is an increase of 20,250 tonnes (6.71 per cent) over the previous season's production of 3, 02,000 tonnes. In Karnataka Chikamagalur, Kodagu and Hassan districts are largest producers. The Hassan district production during is 30,275 and 30,975 tonnes for post Monsoon and Post Blossom season respectively. Indian coffee, grown mostly in southern India under monsoon rainfall conditions, is also termed as Indian monsoon coffee". Its flavor is defined as: "The best Indian coffee reaches the flavor characteristics of Pacific coffees, but at its worst it is simply bland and uninspiring. The two well known varieties of coffee grown are the Arabica, Robusta, the first variety that was introduced in the Baba Budan Giri hill ranges of Karnataka in the 17 th century marketed over the years under the brand names of Kent and S.795 (Anon, 2010). 1.3 Consumption of Coffee in India All coffee is grown in the global south of the world and is mostly consumed in the global north. At present Europe is the largest consumer of coffee with nearly 40per cent of the global consumption. The US and Japan account for 24 per cent and 10 per cent of the global consumption (Anon, 2002). Coffee is an important commodity and a popular beverage. Over 2.25 billion cups of coffee are consumed in the world every day. Over 90 per cent of coffee production takes place in developing countries, while consumption happens mainly in the industrialized

16 economies. In the United States alone, about 350 million cups of coffee are consumed daily. India ranks 134 in the list of annual per capita consumption of Coffee, with a consumption of 0.1 Kg. According to the Indian Coffee Board, domestic coffee consumption is increasing five to six per cent annually, partly due to expansion of the coffee café culture and the spread of the coffee drinking habit throughout India, even into non-traditional coffee drinking regions in the north. The concerted efforts of the Coffee Board and coffee marketers in promoting the beverage as a lifestyle drink via coffee cafes and vending machines has added more visibility to coffee. According to a survey sponsored by the Indian Coffee Board, Coffee consumption in 2009 was 97,000 tonnes, in ,000 tonnes, 73 per cent in urban areas and 27 per cent in rural areas (south India). Based on this, coffee consumption in 2011 is estimated by the Board at 101,700 tonnes. Trade sources are, however, skeptical about the Coffee Board s high consumption figure. According to them, production, supply and distribution fundamentals do not support such high consumption figures. Also a significant quantity of chicory is blended with coffee, particularly in the soluble coffee segments, which tends to amplify the coffee consumption figures. According to some sources the amount of chicory going into the coffee blend is as high as 25,000 tonnes, which tends to over-estimate actual coffee consumption. The present pattern of coffee consumption is influenced by income per capita and that of tea is not. In the past, coffee was regarded as an "old fashioned" beverage for older people, with just two flavours: regular and decaf. Coffee, of late has become relevant and contemporary. Coffee houses or bars have sprung up across the country, making coffee an important part of social gathering places. In many communities, coffee bars have become innovative: some provide personal computers so that customers can surf the Net, while others provide match-making services. There is a

17 wide variety of coffee offerings, from size, flavour, preparation and toppings and plenty of gourmet and specialty shops to provide them. For the last few years, new product trends have been driven specifically by consumer demand for more complex, upscale coffee, both in and outside of their homes. The increased sophistication of the coffee drinker s palate means that coffee as a whole is moving away from the Cuppa-Joe image and towards a richer, more complex drinking experience. So, as the trend towards single cup preparation at home is building more and more momentum, packaging innovators are looking at how best to present pods to the consumers on retail shelves. There are many brands in the conventional coffee segment, which offers a range of products in Instant coffee, conventional coffee, Ice and hot cappuccino and out of home vending. There is variety of offerings suited for the varied and distinct taste palette of the Indian consumer. BRU, Green Label, Nescafe, Cothas etc. are the brands in the conventional coffee segment at national level apart from the few local brands like Coorg coffee, Raghavendra, Sadanand. Hiltop, Royal, Shrinivasa etc Marketing Mix Marketing mix includes the four P s (4P) of marketing namely price, product, place and promotion. The details are as follows 1. Product: Design, Quality, Features, Brand name, Packaging, Sizes, Services, Warranties, Returns. 2. Price: List price, Discounts, Allowances, Payment period, Credit terms. 3. Promotion: Sales promotions, Advertising, Sales force, Public relation. 4. Place: Channels, Coverage, Assortments, Locations, Inventory, Transport, warehouse.

18 1.4 Organization profile: Arehally Coffee Growers Co-operative Society, Arehally. (ACGCS) Formation of the society In 2000, the small and medium coffee planters in Arehally and surrounding area came forward to form a Karnataka Coffee Growers Association in Arehally. There are 800 members in the association till date. The members are from of Belur taluk. Later they established a co-operative named as Arehally Coffee Growers Co-operative, Arehally. The main goal was to get quality farm inputs at reasonable price, at required time and to sell the quality farm output at affordable rate to customers without compromising on the quality, which will create win-win situation for both farmers as well as customers. In 2001, Arehally Coffee Growers Co-operative started preparing coffee powder. In 2007, they established a brand named as Copsy coffee with the punch line direct from the growers. They launched the brand in Coffee Board, Bangalore, in the presence of G. V. Krishna Rau, Chairman of state-run Coffee Board. The brand logo, design and tagline is designed by a well wisher of the organization having experience in the marketing as well as media Organisational structure & management There are nine directors. The selection of the directors is unanimous till date. Among them one director is selected as the chairman. The meeting of the directors is conducted before 10 th of every month Employees Earlier society used to have five employees, whereas since closing of retail shop in Bangalore only there are three employees, one manager and two supervisors.

19 1.4.4 Meetings The society conducts annual general meeting during the month of April September. The major decisions and key issues are addressed in the general meetings. The members meeting are conducted on every Monday to discuss the issues about the cultivation aspect and to share the experiences of the growers. They also invite the guest scientist and progressive farmers to guide regarding the coffee cultivation practices Eligibility for membership The membership in the organization can be obtained by any coffee grower after payment of Rs and two coffee beans bags. Any act of the indiscipline actions can lead to termination but till date no such incident is reported The assets of the society are as follows a) Roasting unit: Three lakh b) Packing machine: Two lakh c) Accessories: One lakh d) Plot site: Three lakh 1.5 Need for the Study In 2007 the society launched the brand Copsy Coffee with a punch line Direct from the growers. The main goal is to offer best quality coffee besides competitive price to the consumers without compromising on quality. As a domestic sale strategy, the society sells coffee mainly in 100 gm, 200 gm, 500 gm and one Kg. unit packs. They developed a dedicated distribution network to take up door to door delivery of coffee powder. The society has its own retail outlets in Hassan, Mysore and Bangalore (Prabhat Complex, Kempe Gowda Road.) The society is also planning to expand in other towns and cities of Karnataka. In the light of the above mentioned background a study was initiated with the following specific objectives.

20 1.5 The specific objectives of the study are 1. To analyse the brand launching and promotional strategies of Copsy coffee. 2. To assess the sales, distribution and pricing strategies of Copsy coffee. 3. To analyze the product strategy and consumer preference for Copsy coffee to other coffee brands. 1.6 Hypotheses 1. The brand launching and promotional strategies are same as that of other coffee brands. 2. a) The sales and distribution strategies are same as that of other coffee brands. b) The pricing strategy is as par with the market brands. 3. The consumers are indifferent to Copsy and other Coffee brands. 1.7 Presentation of the study The project report is organized into six chapters. The first chapter provides a brief introduction along with the specific objectives. In second chapter, some pertinent reviews are presented in consonance with the study objectives. Third chapter describes main features of the study area, sampling framework, database and analytical tools employed in the analysis of data. The empirical results are presented in the fourth chapter, followed by critical discussion in fifth chapter. The summary and policy implications are included in the sixth chapter and finally references in the seventh chapter. 1.8 Limitations of the study The present study has limitation of time and other resources commonly faced by the student researchers. However, considerable care has been taken in making the study as systematic as possible. The study is based on the primary data collected by personal

21 interview method with respect to consumer preference for Copsy coffee in Hassan, Mysore and Bangalore city, so the findings of the study may not be generalized beyond the boundaries of the area. Thus, the results of the study are to be interpreted keeping the above limitation in view.

22 REVIEW OF LITERATURE

23 CHAPTER II REVIEW OF LITERATURE A review of past research studies helps in identifying the conceptual and methodological issues relevant to the study. This will enable the researcher to collect relevant data, analyze and interpret the same so as to draw meaningful interpretations. The chapter is presented under the following headings The brand launching and promotional strategies The sales, distribution and pricing strategies The product strategy and consumer preference of coffee brands The brand launching and promotional strategies. Chen (1988) revealed that in retail markets for fresh agricultural commodities, product characteristics are heterogeneous and consumers have less-than-perfect information about product quality. Consequently, sorting schemes such as grading and branding occur. The study investigates how the degree of grading and branding for agricultural commodities at the consumer level is determined. A Lancaster type demand function involving quantity and quality was derived, based on Dixit's iso-elastic utility function. The models developed are applied to the following propositions: (1) in a market with a majority of uninformed consumers, branding may not provide higher quality. When branding provides lower quality, grading may lose market share; and (2) in a market with a majority of informed consumers, branding may provide higher quality. When grading provides a lower quality, it may gain market share. Empirical observations from retail markets are examined to lend further support to these propositions. Kapferer (1988) discussed two measures of brand awareness which are brand recognition and recall. Brand recognition is the

24 ability of customers to confirm that they have previously been exposed to a brand and brand recall reflects the ability of consumer to name a brand when given the product category, category needed or some other similar cues. He also mentioned that top of mind awareness is critical as it captures the consideration set in a given purchase situation. Dave (1988) in his study on dairy products in United States revealed that advertising and promotion to boost consumption of dairy products, which helps both the farmers and the consumers. He suggested increase in the funds for promotion of sales, only is the evidence of increase in sales due to these measures are obtained. Hoyer and Brown (1990) explained that the core of brand equity lies in the construct of brand awareness. Brand equity occurs when the consumer has a high level of awareness and familiarity with the brand and holds some strong, favorable and unique associations in memory. In low involvement decision settings brand awareness is just adequate leading to purchase. Repeat purchase then, is a function of the functional utility and image utility of the brand. Thus when perceived quality differences exist among competing brands, consumers may pay a price for employing simple choice heuristics such as brand awareness in the interest of economizing time and effort. Veerendrakumar (1993) in his study on strategies for fertilizer promotion under changing environment in zonal wise situation of agricultural development in India revealed that for rapid awareness mass communication extension strategy is also adopted by most of the organization engaged in agricultural extension activities. The credibility studies of various means of communication have however, indicated that demonstrations and farmers meeting rank at the top. Nevertheless a media mix approach is gradually adopted to

25 accelerate the pace of transfer of technology with the large spectrum of target audience. Bhattacharya and Paliwal (1998) conducted a study on promotional measures adopted for bio-fertilizer marketing. They stressed the need for availability of credit to farmers, technical knowledge to farmers, availability of bio-fertilizers at district and taluk levels and also to make the people aware of importance of biofertilizer for soil and crop growth. The promotional measures such as radio, T.V., press advertisement, wall paints, road side boards, cinema sliders, film show, street drama etc were suggested. Rane (1996) in his article studied the promotional strategies of DFPCL (Deepak Fertilizer and Petrochemicals Corporation Ltd.) He found that the sales programmes were carried out through agricultural graduates by distributing the company products personally to the farmers. This programme created good image for company s product. In addition, the spot demonstrations carried out on farmer fields helped to compare the efficiency of products. Apart from these things DEPCL also conducted farmers and dealers training programme to impart knowledge about the use of P, K and micronutrients. Kim-Hyunah et al. (2005) analyzed the relationship among brand equity factors brand awareness, brand image, brand preference and brand loyalty) and suggested a strategy for brand management in contract food service management companies. He concluded that brand awareness has positive effect on brand image and brand preference and recommended that the contract food service companies should focus on improving brand awareness as a brand strategy. In addition, brand preference and brand image have significant positive effects on brand loyalty. Thus, the companies should strive to strengthen brand loyalty through building brand preference and brand image. Brand loyalty promotes more

26 customer visits, which is directly related to profitability of contract food service management companies, the authors concluded. Chandan (2008) evaluated the promotional strategies and revealed that price discount significantly influences the consumer buying behaviour which indicates that consumers are inclined to buy a product early or purchase more quantity when price promotion is executed. Since price discount directly reflects the consumer savings, it has a strong bearing on purchase decision. While a sample is generally given for new/ innovative products, it does not have significant impact on the buying behaviour since so many new products are introduced frequently in the market. On the contrary, free gifts are given along with the purchase of some products, so customers do not feel any value addition to their purchase. Moreover they never expect more value from gifts as they are mainly interested in buying what they want, rather than what is given as a gift. Buy one get one free significantly influences the buying behaviour of the customers. It has the capacity to tempt the customers to switch the brands and makes the customers think about buying early. Customers get an opportunity to carry an extra product for the same price. This promotional tool is able to extent influence on the customers buying behaviour. Among the various tool as such as Samples, cash refunds, premiums, price packs, coupons, programme contests, games, bonus packs, sweepstakes, patronage awards, free trials, product warrantees evaluated buy one get one free is a popular promotional tool followed by price discount, sample and free gift. The demographic variables does not influence on the promotional tools. The decision of choosing promotional tool depends on the nature of the products, substitutes available and market dynamics. Time of the promotional tools plays an important role in the success of promotional campaign. Hence promotions are expected to be launched at the right time to offset competitive promotions so the

27 companies need to be cautious about the offers and the market happenings. In spite of the challenges, a sales promotion acts as a versatile weapon for marketing of the products and services. New developments in the fields of the promotions such as internet, s, and text messages provide a platform for interactive sessions and enable more sales for the company. Shafiulla (2009) observed trademarks owners naturally seek to maximize the popularity of their trademark. Great corporate names and trademarks identification is a result of very scientific process and a complex creative exercise. Most of the corporate naming is like a last minute casual process led by big advertising agencies. If trademarks are developed with a vision i.e. considering the future opportunities and challenges for the trademark in the market, and planning marketing strategies, then the chances of the trademark becoming a generalized trademark will be minimized. Therefore trademark owners should have a strategic brand management to continuously monitor and to reposition the trademark whenever required, so the trade mark owners have to use different strategies to protect their trademarks in different markets, for different products and in different circumstances. To protect trademark, correct usage of the trademark by owners and licenses should be emphasized and incorrect usage of trademark by others should be policed vigorously and consistently before it is too late. Shiguetaq (2009) observed that decision makers in the organization need to undertake both financial and marketing approaches for decision making to becomes imperative. Evaluation of customer satisfaction and loyalty can be measured in terms of brand valuation. It becomes invariably imperative for the organization to study the external orientation, which is short term but it is more important to promote a long term perspective in order to have a sustainable competitive advantage. Brand valuation today could become a comprehensive instrument in decision making for the

28 corporate management in times to come. Many established methodologies have widely been practiced for brand valuation by brand consultancies such as brand finance, inter-brand and brand metrics. Akhila (2010) observed that international marketing strategies combining changes in marketing mix elements, market segmentation and target marketing is essential to position Bangalore as a global healthcare destination. Branding based on the unique selling propositions and value proposition has to be derived carefully to fight the ever increasing competition for Bangalore on the medical tourism front. Maintaining the quality of the treatment, offering low cost. Value added services will play a major role in delivering customer delight. Positive word of mouth and effective mode of advertising like TV, magazines can be used to attract the foreign medical tourist. Quality treatment at affordable rate attracts patient from Pakistan, Bangladesh, Shri Lanka, Nigeria, Kenya, Nepal, on the other hand insurance related problems, no queues, Providing Indian therapies with heritage culture, ayurvedic therapies attracts patients from developed countries. The packages have to be made on the geographical segmentation. Debiprasad (2010) studied that advertising is playing a manipulative and merciless role in the emerging brandscape, seeking to transform customers in to personification of brand identity, to achieve the market efficiency value for the brand should be created, and managers must have the knowledge and expertise to exploit this value by developing profitable brand strategies. Overall research points to accumulated positive influence over the audience recall and purchase intentions, with celebrities deemed more effective than using a typical consumer or expert. Successful celebrity/brand partnerships have resulted in significant gains in income for brand owners. Careful management of the brand image that impacts on the brand associations stored in consumer memory is critical to a successful

29 strategy. The consumer report shows higher self brand connections for brands with images that are consistent with a image of celebrity that they aspire to be a like, particularly in the case when the image of the celebrity and brand match. Study also examines how self-brand connections are formed. Celebrity endorsement effects are moderated by brand symbolism, such that brand s that communicating something about the user yield stronger effects than brands that do not. In the case of aspirational celebrities, the positive effect of image congruency is stronger for those brands that are perceived to communicate something symbolic about the brand s user, as compared to those brands that do not. It is important demonstration that consumers are motivated by their self- needs to utilize brand associations derived from celebrity endorsements in a contingent fashion to construct and present their self identities. Garima (2010) analyzed the presence of the brand Dabur is extremely good in rural market because of its strong distribution network, there is top of the mind awareness about the organization and its products line as the customers are able to easily associate themselves with the brand because of its mass appeal. The sales promotion schemes given by the organization are able to match the customers need and expectations and are good motivator for the customers to make a favorable purchase decision. The sales promotion activities have been able to generate more revenue and the acceptability of Dabur s product line has gone up. There is a level of optimism in consumers regarding the different schemes and initiatives taken up by the Dabur, which is reflected in the questionnaires where respondents said they will not go for any other product than Dabur s. Advertisement and sales promotions have been able to create the much needed awareness along with the indispensable role played by the retailers. Communication reach of Dabur is not up to the mark and is a cause of concern and should be worked upon by the company.

30 Gopal (2010) analyzed that while making sales promotional strategy, the managers consider various parameters so that sales promotion can gives its best result. Out of the various parameters, Demographic parameter is one. But it s a very interesting question whether demographic parameters have any impact on sales promotion or not. The present study finds out that the demographic parameters have no impact on sales promotion. There are various reasons behind the purchase of the product. This study finds out that keeping the product satisfaction constant, sales promotion is the main reason to for purchasing convenient goods. The study also finds out that Sales promotion increases sales volume. In retail buying, location of the retail outlet has an impact. But this study shows that location does not play a significant role in purchase decision of convenient goods when promotion is concerned. The analysis of the study finds that future sales promotion cannot make customers wit for it. There are various results of sales promotion. Repeat visit to the store is one of them. The study finds that a sales promotion plays a limited role in ensuring repeat visit to the store. The sales promotional strategy can be made by introducing various promotional schemes. While ranking the various promotional schemes, the study ranks the direct price discount no. 1, buy one get one free no 2 and buy one get another product free number 3. Lastly the study wanted to know the media habits of the customers. From the result, the study concludes that in store publicity plays a major role in providing information to the customers, followed by TV and news papers. Regarding future investigation, the researcher suggests that a similar study for non convenient goods can be undertaken. The study is limited to Kolkata only. Mahinder (2010) observed the celebrity endorsement has become an integral part of the advertising, but there are potential risks related with the use of the celebrity endorsement mainly due to the five important factors. All the factors indicate that celebrity

31 endorsement itself as great risks to the company because of advertisers do not have any control over these risks directly. Multiple product endorsement is a most important factor, which is harmful to both celebrity as well as the product. The second highest risk factor is financial risk because celebrity endorsement is expensive, big investment for the firm as well as the customer. Also celebrity endorsement has objective of only attracting customers but not give them proper and true information about the product. The next is the negative impact reveals when the celebrity is associated with the endorsement of the brand of rival company. Negative information related to the celebrity has a direct influence on the performance of the product in the market. Misleading factor also indicates that the advertisement compels the consumers to buy those products that customer should not buy and it also promotes undesirable values in society. Pongiannan (2010) identifies a new sales promotional strategy through measuring the viewers perception towards the different advertisements on TV media. It is also observed from the study that the TV is the single most preferred media for advertisement by the respondents because of the creativity, reliability, reachability, understandability and flexibility. However it is not worthy to offer implications based on the respondents perception. The advertisement on TV lasts for 30seconds or less so it is suggested to that the advertiser should design the advertisement in an appealing way with creativity, attractive slogan and background music or an appropriate blend of all these features. The advertisement should be with aired with humorous messages, humorous animations and comedians according to the nature of the product. Celebrity endorsement is also highly preferred so to obtain more recall and recognition values for the advertised product, the appearance of celebrity in accordance with culture and ethics in the advertisement is suggested.

32 Yashmin (2010) analyzed the agencies in India have no formal way of evaluating their advertisement campaigns because of the need has not yet arisen since they do keep getting business, and it is on the basis of the further business from their present clients that they assess whether their advertising achieved its objective or not. There is no separate advertising evaluation or research technicians although the when, where, what and how of testing requires them. Agency management does not, in general, understand the framework of the technical needs. Researcher also find out that advertising agency executive also did not give much importance to the validity test. For effective advertisements it must attract customer attention, developing interest and understanding, gain, impact and influence attitudes contributory to the accomplishment of the advertising objectives. Advertisement management should focus attention upon these aspects as selection of testing methods, professional research talents to do the job and both ability and integrity on the part of the advertisement research The Sales, distribution and pricing strategies. Biradar (1995) conducted a study on marketing strategies for fertilizers. In his study on promotional aspects to be adopted for fertilizer distribution, he stressed the need of market segmentation on fertilizer wise, crop-wise, soil-wise etc. He added that the dealers and marketing staff should be trained in promoting sales of fertilizers. Other measures he described were the farmers training programmes, developing the audiovisual programmes, package of practices to farmers, more retail outlets, intensive farmer oriented market development programmes, projecting favourable image of farmorganization by maintaining high standards in dealing with farmers and general public etc. Combris et al. (1999) studied the significance of quality in fixing the prices of Bordeaux and Burgundy wines are examined. While at

33 wholesale wine auctions the relationship between quality and price is a strong one, due to the information held by the experts involved in it, among lay buyers the situation is more complicated. The paper therefore ask to what extent information on the label is more significant than sensory, more subjective experience of the wine by consumers. The first part considers how differences between prices for wines in a market can be accounted for. The second part stresses the strategies open to consumers in making a choice, one constraint being that tasting the product directly will not normally be possible, meaning that more attention will be paid to the label and any expert assessments it contains. The conclusion argues that these subjective aspects of quality-evaluation are less significant than objectively determinable characteristics such as jury opinions. The labeling of Burgundies is more flexible than that of Bordeaux, due to the rigidity of the characteristics of the latter. Bordoloi (2000) has conducted a study on the price sensitively of coffee consumption in Bangalore city. The study has revealed that in Bangalore about 74 per cent of coffee consumers consume branded coffee, 20 per cent consume unbranded coffee and the rest 6 per cent consume both. 52 per cent of the respondents consume filter coffee, 34 per cent of consumers consume instant coffee, and 14 per cent of the consumers consume local coffee. Taste was the topmost attribute (85 per cent), followed by Quality (73 per cent), the price coming in the third position (53 per cent) other attributes are flavour (52 per cent), Aroma (46 per cent0 and packing (23 per cent). 81 per cent of the respondents consume coffee in between 1-5 cups per day, 15 per cent consume 6-10 per day, 2 per cent consume cups per day and 2 per cent consume cups per day. For a price increase of 20 per cent, it was inferred that 87 per cent of the respondents show no impact while none of them reduce or stop consumption, but as the price goes on increasing, the number of respondents reduce or stop consumption 80 per cent increase, 50 per cent and 25 per cent

34 respondent reduce and stop consumption respectively for 100 per cent in price, 32 per cent and 47 per cent reduce and stop consumption. This means that coffee consumption is price sensitive. Among the respondents 46 per cent opt of the taste factor to buy coffee, 3 per cent opt for price, 51 per cent opt for both taste and price. On the whole the study infers that for an increase in the price of coffee, the level of consumption decreases. Judd (2000) reported that the relationship between price and objective quality is important for consumers who perceive that high prices signal high quality. Several studies in the past have attempted to measure the relationship. This study focuses on brands of food products in a variety of categories in an attempt to measure the correlation between price and quality, and to report the outcomes if the highest and lowest priced brand in category are selected. This study also considers the findings of earlier food product studies, as well as earlier studies of non-food products. Data from the USA are used in the study. Rosecky and King (2000) said that the accepted economic theory suggests the prices of commonly available products in competitive markets are likely to be approximately the same. If monopoly prices can be extracted, the resulting profits attract competitors into the market. In his study, he examined the prevailing prices in detail for a large number of commonly available supermarket products in France, the United Kingdom, and the USA. The results of this study show that some products have very similar or the same prices and other products have different pricing pattern. Santiago et al. (2000) conducted a pilot sample survey in 1997 to study the structural features of the foodstuff wholesale market in Sao Paulo city, Brazil. The usual pricing process in this market was simply achieved by adding a markup to the costs. However, some wholesalers obtain price information from other wholesalers,

35 especially those established far from the main wholesale areas. Wholesalers are used to buying products from farmers (particularly non-manufactured foodstuffs like potato, onion and eggs), from jobbers or other wholesalers (maize and garlic), from the jobbers and industries (rice), from industries and other wholesalers (beans, meat, sugar, coffee and wheat flour). Most wholesalers sell to retailers, but some also sell to other wholesalers, to restaurants, to industries and even to consumers. Bojanna (2001) analysed the performance of Tata s coorg coffee works in Bangalore showed that retailers covered 45 per cent of the business, 29 per cent of them were more than ten years old. Customers at the time of purchase look at price, quality and brand. 74 per cent of the companies promote their coffee products through offers and advertisements. Customers expect promotion in the form of price discounts, more quality for a price and awareness campaigns. Buzas (2003) paper presents the results of price analyses done in the course of food retail activity investigation. He viewed from a theoretical-economic approach, the consumer price contains the costs of production, processing and trading, as well as the profit share related to these activities. In practice, particularly in the food sector, this kind of linear accumulation has rarely succeeded. In the case of foods, due to a decrease in consumption and vertical competition, not only the profit share, but often some of the costs could not be made good in the selling price. This failure has an impact on agricultural producers and the food industry, whereas in commerce, profit could be realized easier. In the formation of a food consumer price there are diverse practices in use from the simple markup pricing method to the complex marketing strategiesbased price-forming. Bolton and Venkatesh (2003) studied retailer pricing and promotions at brand-store level. They examined 1,364 brand-store

36 combinations from 17 chains, 212 stores and six categories of consumer package goods in five U.S. markets. Retailer pricing and promotion strategies were found to be based on combinations of four underlying dimensions: relative price, price variation, deal intensity and deal support. At the brand-store level, retailers practice five pricing strategies, labeled exclusive, moderately promotional, Hi-Low, EDLP (Every Day Low Pricing) and aggressive pricing. The most prevalent pricing strategy was characterized by average relative brand price, low price variation, medium deal intensity, and medium deal support. The findings suggested that retailers need to closely monitor their competitors price decisions at the brand level. Bacchi and Alves (2004) analyzed the price formation process of retail crystal sugar in the center-southern region of Brazil, considering the different segments of its commercialization chain. The analysis was carried out over the May 1998-December 2002 period. Results indicated that producer and retail prices of crystal sugar have expressive relations in the short and long run. Income was not proven very important in the explanation of the crystal sugar price in the retail market. This was expected due to the small share of the product in the expenses of families. McLaughlin (2004) in his study explained the major factors that contribute to the complicated price formation process, as several levels, of fresh fruit and vegetables in the US were marketing channels, market structure changes, pricing techniques and promotional impacts, retail responses to supply changes, and price versus value. Sezen (2004) conducted a study on the pricing strategy for perishable products, found that consumers were less likely to purchase perishable goods when their expiry dates are near. For this reason, retailers frequently implement a discount pricing policy when the products have reached closer to their expiry dates.

37 Thus the retailers tend to gain by reducing losses due to spoilage of goods. Carman and Sexton (2005) study analyzed the retail milk pricing by supermarkets and marketing margin behaviour for four fluid milk products in nine large metropolitan markets in the Western United States. Multiple empirical approaches are utilized to investigate retailer pricing behaviour, and, on balance, these methods provide significant evidence of noncompetitive price behaviour in each of the markets. Correlations of retail price changes indicate considerable pricing independence among retailers across cities, while rankings of retail prices by milk product provide significant evidence that prices were not based primarily on costs, as would be true if pricing were competitive. Estimated retail price responses to farm price changes are consistent with monopoly pricing behaviour for several of the milk products in several of the markets. Li Lan et al. (2006) conducted a study on Food retailers pricing and marketing strategies and found out that retail grocery chains were the dominant players in the vertical market channels for many commodities. Retailers through mechanism of vertical control exert a strong influence on upstream suppliers and determine the products offered in their stores. They also noted that large retailers posses some degree of oligopoly. The small scale producers revenue decreases when retailers use promotional sales as a selling strategy although the consumers were benefited. Gnanesh (2008) studied the growth of wine business in Karnataka, and the specific case of Nandi valley winery. Retailing of wine business in Bangalore city was assessed to find out the sales, stocking and market performance and the promotional activities taken up by the retailers was studied taking into account that Wine advertisement using mass media is banned in India. Therefore the

38 companies take up indirect advertisement or advertisement at the point of sale or surrogate advertisement. Strategies for streamlining wine market were also suggested. Ramesh (2010) observed that loyal and satisfied customers are backbone of a firm. In a competitive environment, developing loyal and satisfied customer is an uphill task for companies. It is a known fact that loyal customers are the partners in the success of the firm. Therefore companies need to put efforts to develop loyal and satisfied customers. Loyalty and satisfaction are the two different behavioral issues. A customer may be loyal, but may not be satisfied or satisfied but may not be loyal. Hence it is important for a company to develop a loyalty programme on the basis of customer loyalty and customer value. Customer classification only on the basis of business potential of the customers at times ends up with shortsightedness. Therefore, combining customer loyalty, value and population pyramid is considered to be more relevant. Suman (2010) studied that the company should segment its market and should ensure the availability of the product to its entire outlet by it s by revamping its distribution strategies. As the intermediaries hold the vital positions in the distribution process the company may focus on the motivational programmes on financial and non financial rewards. Financial reward includes higher margin, extended credit facility, bonus and allowances. Non financial reward includes sales and display contests, recognition for outstanding performance etc. The training programmes for intermediaries to sharpen product knowledge are helpful which will enhance selling skills to offer better service to satisfy the customers. To meet the consumer demand efficiently intensive distribution is necessary.

39 2.3. The Product strategy and consumer preference of coffee brands. Dhuna (1984) conducted a study to determine the prevailing pattern of consumption pattern of soft drinks. A sample of 150 respondents was surveyed regarding their consumption habits. Analysis revealed that 54 per cent of consumption was in summer and 46 per cent of consumption was during other season put together. It was found that about 26 per cent of the respondents were regular consumers and the rest consumed soft drinks occasionally. Gluckman (1986) studied the factors influencing the consumption and the preference for wine. The explicit factors identified were the familiarity with the brand name, the price of wine, quality or the mouth feel of the liquid, taste with regards to its sweetness and dryness and the suitability for all tastes. Some of the implicit factors identified through extensive questioning were color and appearance. Most consumers preferred white wine to red. Packaging, appearance, color, use of foreign language and graphics were taken as important clues for quality and price. Shanmuga Sundaram (1990) studied about soft drink preference in Vellore town of north Arcot district in Tamil Nadu. The study revealed that, the most preferred soft drink among respondents as Gold Spot (26%), followed by Limca (24.80%). It was found that taste was the main factor for preference of particular brand and among the media; television played a vital role in influencing consumer to go for particular brand. Because of convenience in carrying, tetra pack was most preferred one. Sharma and Kuber (1991) conducted a study on consumption pattern of milk and milk products relating to the households belonging to weaker sections of Saharanpur district. The study revealed that per capita total expenditure on milk and milk products was higher in winter and on other food expenditure was higher in

40 rainy season. The expenditure on pure ghee, milk and other milk products showed variation in different seasons. It was also observed that dairy products and non-food items were expenditure elastic. Inmake et al. (1995) studied the milk consumption behaviour by urban and rural consumers in western Maharashtra. The factors considered were family size, occupational status and family income. Family income had the highest influence on milk consumption whether the consumers were urbanities or rural consumers. Occupational status and family s size to a certain extent were also responsible for deciding the milk consumption of households. Amitha (1998) studied the factors influencing the consumption of selected dairy products in Bangalore city. The results of the study indicated that income and price were the factors that significantly influenced the consumption of table butter. Price had a negative impact and income a positive impact, on consumption. The consumption of ghee was positively influenced by income, price and family size. Cheese, just as in case of table butter, was influenced by its price. Ashalatha (1998) studied the factors influencing the performance of BAMUL milk for a sample of 100 respondents. The study revealed that the factors such as door delivery, clean packing, quality, hygienic preparation, time saving and reliability, good value for money, freshness and desired flavour were important in the order in influencing the decision of buyers for BAMUL milk. Daisy et al. (1999) conducted a study on consumption pattern and consumer preference for milk products in Madras city. The results of the study revealed that family size, monthly income and education levels had a significant and positive influence on consumption of milk and milk products. Furthermore, the preference of the households was found more for toned milk in all income groups. The preference for other milk products like standardized milk, skim

41 milk and skim milk powder, table butter, cooking butter, khoa and yoghurt increased as income increased which was due to the higher educational level of the head of the household. Namasivayam and Vijayakumar (2003) reported the consumption of carbonated soft drinks in selected urban centers in Tamil Nadu. The study revealed that out of 360 respondents, per cent of the respondents had the habit of drinking soft drinks during travel, per cent near home and per cent in the bus stand. Respondents aged less than 26 years consumed more soft drinks invariably in all places. Among these sample respondents, 70.6 per cent were male and 29.4 per cent were female. It was also found that per cent respondents were students in college/ universities and consumed more soft drinks compared to other categories. Nandagopal and Chinnaiyan (2003) conducted a study on brand preference of soft drinks in rural Tamil Nadu, using Garrets ranking technique, to rank factors influencing the soft drinks preferred by rural consumer. They found that, the product quality was ranked as first, followed by retail price. Good quality and availability were the main factors, which influenced the rural consumers of a particular brand of a product. Sampathkumar (2003) studied about brand preference in soft drinks in Telangana region of Andhra Pradesh. He found that in rural market about 37.5 per cent of consumers preferred Thumbs-up (urban 30%), followed by Coco cola 28.5% (Urban 37.5%), Pepsi 12.5 per cent (urban 9%), Limca 4 per cent (urban8.5%). Most of the urban consumers (67per cent) purchased soft drinks in nearest Kirani stores (rural 73%), followed by super bazaar (27 per cent) (rural 26%) and others (6 per cent) (rural 1%). The method of physical distribution played very vital role in company s success and failure in

42 the market. Transportation is among the major functions of physical distribution. Transport adds time and place utility for the product. Apoorva Palkar (2004) studied the consumer preferences in purchase of ready to eat snacks-branded potato chips. Random sampling technique was employed covering 150 consumers and 50 retailers. The results revealed that nearly 60 per cent of the consumers prefer Lays to Peppy, Cheetos and Kurkure. The spicy and the salty flavors were found to be most preferred in chips consumers and they said that taste or time pass was the most important reason for purchasing chips. Nearly 66 per cent of the consumers purchase the products at least once in a week. Consumers prefer to purchase once or twice a week. The habitual purchasers buy Lays brand indicating the loyalty of the consumers. Radhakrishnan (2004) conducted a study on perspectives and prospects of coffee consumption in India. The result indicated that coffee consumption had shown an annual average growth of 2.14 per cent between1951 to In absolute terms the off take in domestic market had grown from about 18,400 tonnes to about 70, 000 tonnes during For various reasons the decade between 1991to 2000 did not show any noticeable growth in consumption. Most of the earlier growth had come from Robusta than Arabica. Though, during the pool marketing, the period between showed higher volume of consumption (well above 50, 000 MT and peaked about 63, 000 MT) and the highest growth rates were achieved only during the period and at a CGR of 7.23 and 3.28 per cent, respectively. Market development in non- traditional areas, consolidating traditional markets, retail space: outlets and distribution, product forms, consumer education and focus on the youth were some of the policies implied by him. Usharani and Reddy (2004) studied consumption pattern of milk and milk products of 240 households (120 each from high and middle income groups) in Hyderabad, India. The results

43 showed that the consumption of milk and milk products was influenced by the knowledge on the availability of nutrients and the income level of the respondents. Liquid milk was the major item of daily consumption. Ice cream was the popular milk product showing growth potential in spite of certain concerns in its frequent consumption. Randhwa and Chahal (2005) conducted a study on consumption pattern of milk and milk products in rural Punjab. The study was conducted to examine the consumption pattern of milk and milk products and to investigate the factors affecting their consumption in rural Punjab. The requisite data was collected through personal interview method by adopting multistage sampling technique. The results showed that the expenditure elasticity was 0.89 and 0.65 for liquid milk and for milk products respectively. Banumathy and Hemameena (2006), while studying consumer brand preference with respect to soft drinks, found that after globalization most of the consumers like the international brands such as Pepsi and coco-cola. Consumers preferred a certain brand or a particular drink mainly because of its taste and refreshing ability. Mahajana Shetty et al. (2006) conducted a study on consumption pattern and consumer preference of milk and milk products in Hubli-Dharwar urban conglomeration. A multi-stage sampling procedure was followed for the selection of the respondents. Households preferences for the attributes of liquid milk were studied using conjoint analysis. The important attributes of liquid milk that influenced the consumers decision to purchase liquid milk were identified in consultation with a sample of decision makers of liquid milk consumption across different households in the twin cities. While liquid milk was used by all the households; curds, butter, ghee and paneer were used by 87 per

44 cent, 53 per cent, 44 per cent and 29 per cent families respectively. The results of the study revealed that the percapita expenditure incurred on liquid milk and the use of liquid milk for drinking purpose increased with increasing family incomes. The results of conjoint analysis indicated that price was of maximum relative importance and brand was of minimum relative importance in the overall decisions regarding the purchase of liquid milk. They concluded that milk of any brand needs to be price competitive with good fat content in that urban conglomeration. Maruthamuthu et al. (2006) conducted a study on consumer behaviour and brand preference of Britannia biscuits. The study revealed that 41per cent of the respondents purchased for brand image, 31 per cent for quality and 24 per cent for its low prices while 12 per cent of the respondents preferred it for its availability. It also indicated that 21 per cent of the respondents were influenced by parents to make purchase decisions, 49 per cent by children and 21 per cent and 9 per cent of the respondents were influenced by friends and neighbours respectively. They suggested that introduction of new product line and offering gifts would keep the sale constant. Also, introduction of hygienic and attractive packaging without increasing the price may attract more consumers. Vincent (2006) elicited that quality is an important factor that draws consumers towards branded products. Branded products are accepted as good quality products. People do not mind paying extra for branded products, as they get value for money. Media is a key constituent in promoting and influencing brand. A child s insistence affects family s buying behaviour. Children are highly aware and conscious of branded items. Although unbranded products sometimes give same satisfaction as branded products, customers would still prefer to purchase a branded product.

45 Sangeeta et al. (2007) studied the consumption pattern and consumer satisfaction for milk and milk products in urban Punjab. The results indicated that the family size was the major variable for determining the demand for food items both at family level and at aggregate level. Whole milk was consumed by 99 per cent while only 1 per cent preferred skimmed milk. Income of a family affected the consumption levels of milk and milk products as it enhanced their purchasing power of a family. Per capita consumption of whole milk was highest for the business category (954 ml), which included those who were self employed; followed by that for the service category (635 ml) and the house wives (559 ml). The study concluded that per capita consumption of milk and milk products showed a positive relationship with income level, occupational structure and the literacy levels, while it was negative with the food habits. Variation in the consumption levels of milk and milk products across different socio-economic groups implied that the designing of a uniform policy and treating the entire population as one homogeneous group could mislead the marketers. Varun T.C (2008) the present study on consumption behaviour of coffee and tea was carried out during in selected four districts of Karnataka, by following multi stage sampling. Totally 240 sample households were randomly selected accounting to 932 respondents. Information was obtained by personal interview method. The important findings of the study are education of the respondents in the urban areas; and family size and price per unit of coffee in the rural area were highly significant with respect to demand for coffee. In case of demand for tea, the total family income in the urban areas and the family size in the rural areas were found to be highly significant. Majority of the respondents in the urban and rural areas of Northern Karnataka consumed tea, while coffee was consumed by 81.70

46 per cent of the urban and of the rural respondents in the south. Bru and Nescafe were the two most preferred commercial brands of coffee and Red Label was the most preferred tea brand among the sample respondents. Quality, aroma, taste and flavor of coffee and tea obtained high index scores in both the urban and rural regions of Karnataka. Results of the Principal Component Analysis showed that celebrity endorsement and influence by retailers had little influence on the purchase of coffee/ tea. Results of the conjoint analysis revealed that price of coffee and tea powder attained the highest relative importance. Jyotsna Krishnakumar and Catherine Chan-Halbrend (2010) India as a potential export market for 100% Kona coffee, this study explores consumer preferences for imported, specialty, and high-end Kona coffee in South India. Conjoint choice experiment with latent class analysis is used and results indicate that India offers an export market potential for Kona coffee, provided it caters to consumer preferences. Results show a significant preference for strong taste. The relative importance of price is lower than taste but majority are also adverse to higher prices. However, 15% of the sample population does not care about price but does care about taste, indicating the possibility of a high-end niche market segment. Based on the results, marketing strategies and policy recommendations have been suggested. Niranjan (2009) studied and analyzed that the Bournville needs to focus on its ads on aspects like product association, claim, proper target audience connect. Although the tagline Earn your bournville has a good recall level and the creativity is noteworthy, but the ad has failed to imbibe the claim it is making about the quality in the heart and mind of the target audience. It appears that the communication effect is not substantial and without much classy impact. To the respondents, on the storyline screen play, music jingle has a very little impact. The brand recall, target audience connect and emotional

47 appeal did not have any significant impact. They would rather accept an ad of bournville with Indian participants and environment harping on the emotional and premium aspect. Venkateswaran (2009) studied customers brand preference of selective household brands at Dindigul, Tamil Nadu. He found out that consumer prefers a particular brand based on what benefits that brand can offer to him/her. Because of such consumer preferences, the brand can charge higher price and command more loyalty. It was also observed that in forming the tendency of customers to prefer a particular brand, the marketing variables lake advertisement, quality of the product, brand name, band image plays an essential role. So a marketer must understand how the customer made his purchase decisions toward the brand. Hence information provided from this study will assist those companies already existing in or planning to enter the market, in selling and increasing their market.

48 METHODLOGY

49 CHAPTER III METHODOLOGY In this chapter a brief description of the study area, sampling frame, database and method of analysis employed are presented under the following headings: 3.1 Selection and description of the study area 3.2 Nature and source of data 3.3 Sampling design 3.4 Analytical tools and techniques employed 3.1 Selection and Description of the Study Area Selection of the study area The Hassan, Mysore and Bangalore cities of Karnataka were selected purposively for the study of consumer preference, since presently Copsy Coffee sales is taking place in only these cities Population and demography The details of the study area is as follows Bangalore city Bangalore is located in the Deccan Plateau in south-eastern Karnataka. It has an estimated population of 6.1 million, making it India's third-largest city and fifth-largest metropolitan centre. Bangalore is situated in the south-east part of Karnataka at an average elevation of 920 meters (3,018 feet). It is positioned at N E and covers an area of 2190 km². Bangalore urban district borders with Kolar district in the northeast, Tumkur district in the northwest, Mandya district in the southwest, Chamarajanagar district

50 in the south and the neighboring state of Tamil Nadu in the southeast. Bangalore, the capital city of Karnataka, is third most populous city in India, one of the fastest growing metropolitan cities and the twenty seventh largest city in the world by population. With a decadal growth rate of 38 per cent, Bangalore is the fastest-growing Indian metropolis. The literacy rate of 83 per cent is the second highest for any Indian metropolitans, after Mumbai. It is highly cosmopolitan in nature with people of different religions, castes, occupations, cultures, languages and food habits residing here. The city's workforce is predominantly non-agrarian, with only 6 per cent being engaged in agriculture-related activities. The IT and BT hub of India, with industrial estates and numerous financial and educational institutions created immense potential for retail food outlets. The Copsy Coffee sales took place earlier in Sahakara nagar, Rajajinagar, Yelhanka, Jayanagar, and Yeshwanthpur Mysore city Mysore is located at N E and has an average altitude of 770 metres (2,526 ft). It is spread across an area of km 2 at the base of the Chamundi Hills in the southern region of the state of Karnataka. Mysore has several lakes such as the Kukkarahalli, the Karanji and the Lingambudhi lakes. In 2001, percentages of total land area in Mysore city occupied by residences, roads, park and open spaces, industries, public property, commercial establishments, agriculture and bodies of water were 39.9 per cent, 16.1 per cent, per cent, per cent, 8.96 per cent, 3.02 per cent, 2.27 per cent and 2.02 per cent respectively. The city is located between two rivers Kaveri river flows through the north of the city, while Kabini river, a tributary to Kaveri, lies on the south. Though Mysore is situated in the relatively safe seismic zone II according to earthquake hazard zoning of India, earthquakes of magnitude

51 greater than 4.5 on the Richter scale have been recorded in the vicinity of the city. According to the provisional results of 2011 census of India, Mysore city had a population of 887,446 with 443,813 males and 443,633 females, making it the second most populous city in Karnataka. The gender ratio of the city is 1000 females to every 1000 males and the population density is 6,910.5 per square kilometre (17,898 /sq mi). As per the census of 2001, in the city of Mysore, 76.8 per cent are Hindus, 19 per cent are Muslims, 2.8 per cent are Christians, and the remaining belong to other religions. The city's population crossed the 100,000 mark in the census of 1931 and has seen a population growth of 20.5 per cent in the decade As of 2011, the literacy rate of the city is per cent, which is higher than the state's average of 75.6 per cent. Kannada is the most widely spoken language in the city. Hindi/Urdu is also significantly spoken and understood in the city. Approximately 19 per cent of the population in Mysore live below the poverty line and 9 per cent of the population live in slums. According to 2001 census, though 35.7 per cent of the population in the urban areas of Karnataka are workers, only 33.3 per cent of the population in Mysore city belong to the working class. People belonging to Scheduled Castes and Scheduled tribes constitute 15.1 per cent of the population. As per statistics collected by the National Crime Records Bureau of India, the number of cognizable crime incidents reported in the city of Mysore during 2010 was 3,407 (second in the state, after Bangalore's 32,188), increasing from 3,183 incidents reported in Growth in the Information Technology industry in Mysore has led to a change in the demographic profile of the city; likely strains on the infrastructure and haphazard growth of the city resulting from the demographic change have been a cause of concern for some citizens of the city.

52 3.1.5 Hassan City Hassan is lying between to North latitudes and to 76 º 38 East longitudes. Hassan district has a total geographical area of Sq. Km. The greatest length of the district, from south to north, is about 129 kilometres, and its greatest breadth, from east to west, and is about 116 kilometres. The District comprises of 8 taluks 38 hoblies and 2369 villages. As per the 2011 census the population of Hassan district is 17,21,669. Out of which 14,16,996 is the rural population and 3,04,673 is urban population. The percentage of rural and urban population to the total population of the district is and respectively. The percentage of rural and urban population to the total population according to 1981 census ( ) was and respectively. The decadal growth rate works out to per cent ( ). The decadal growth rate was highest during and it was per cent. It reduced to per cent during , increased to per cent during and reduced to per cent during There is a decrease in 7.43 per cent of growth in population during The district has a balanced male, female ratio (996) as per 2011 census. The density of population varies considerably amongst the taluks. With a density of 385 persons per sq.km Hassan taluk tops the list and this is followed by Arkalgud (295), Holenarasipura (290), Channarayapatna (266), Arasikere (238), Belur (217), Alur (199) and the lowest density of 129 persons per sq.km is noticeable in the case of Sakaleshapura taluk according to 2011 census. The density of population per square kilometer for the district is 251. Hassan district lies partly in the "malnad" tract and partly in the southern "maidan"(plains) tract. By considering the physical aspects, climate, rainfall, etc. the district may be divided into three regions, viz., (1) southern malnad, (2) semi-malnad and (3) southern

53 maidan. western and north-eastern portions of the Belur taluk, western and central parts of Alur taluk and the whole of Sakaleshapura taluk constitute the "southern malnad" region, the central parts of the Arkalgud taluk, the western portion of the Hassan taluk, the eastern portion of the Alur taluk, the central and eastern parts of the Belur taluk and the western parts of the Arasikere taluk form the "semi-malnad" region. The southern maidan region includes the whole of the Holenarasipura and Channarayapatna taluks, eastern parts of the Arasikere and Hassan taluks and the southeastern portions of the Arkalgud taluk. The southern malnad is a forest-clad hilly region with a heavy rainfall.

54 Arehally (Belur Taluka) Hassan City Mysore City Bangalore city Fig 3.1: Map of Karnataka state showing study area.

55 3.2 Nature and source of data In order to evaluate the objectives of the study, data was collected from both primary and secondary sources. Primary data: Primary data regarding the organization profile, strategies related to branding, product, promotion, distribution, sales and pricing were conducted by interviewing and discussing with the related personnel in the Arehally Coffee Growers Association located in Arehally of Belur taluk of Hassan district. The data regarding consumer preference, purchase decision was collected by interviewing consumers, using schedule. Secondary data: The data regarding demography, geography and general information of district were collected from the relevant sources. 3.3 Sampling design The sample size selected was 30 Copsy coffee consumers and 30 non Copsy Coffee consumers each from three selected cities, which formed the total sample size of 180 consumers Sampling procedure Data regarding the consumer preference was collected using pre tested structured schedule. Convenient sampling method was adopted to select the respondents. In this sampling method respondents are selected based on convenient to time and availability. The sampling was done in different localities of three cities to get a mix of sample mainly based on region. Data was collected from various age groups, income groups and from both the sexes Collection of data Consumer data regarding socio-economic characteristics, factors influencing the coffee purchasing were collected by personally

56 interviewing the respondents using a structured schedule which was pre-tested and redefined. The respondents were contacted individually and the objectives of the study were clearly explained to them to ensure their cooperation and accuracy in their responses. Even though none of the households maintained any record and they recalled it from memory Period of study The reference year of the study was and the collection of data was carried out during the period April and May Analytical tools and techniques employed Detailed descriptions of the analytical tools employed in the study are given below Descriptive Statistics These are used to describe the strategies of the Copsy Coffee such as product, branding, promotional, distribution, sales and pricing strategies Tabular Analysis Tabular analysis was adopted to process the data in respect of all the objectives, in general. Simple statistical measures like averages, ratios and percentages were used to compare, contrast or interpret the results meaningfully Garret ranking technique In this study, Garrett s ranking technique was used to analyze the factors influencing consumers preference for particular brand of coffee powder. The preference of the attributes given by the respondents was converted into ranks by using the formula.

57 Accordingly these ranks were converted to scores by referring to Garrets table. Garrett s formula for converting ranks into per cent was given by per cent position = 100*(Rij-0.50)/Nj Where Rij = Rank given for ith item by jth individual Nj = Number of items ranked by jth individual The per cent position of each rank was converted to scores by referring to tables given by Garret and Woodworth (1969). Then for each attribute, the scores of individual respondents were summed up and divided by the total number of respondents for whom scores were gathered. The mean scores for all the factors were ranked, following the decision criterion that higher the value the more important in order of preference by customers.

58 RESULTS

59 CHAPTER IV RESULTS The empirical results of the study are presented as below. Keeping the objectives in view, the results are presented under the following headings. 4.1 The brand launching and promotional strategies of Copsy Coffee. 4.2 The sales, distribution and pricing strategies of Copsy Coffee. 4.3 The product strategy and consumer preference of Copsy Coffee to other Coffee brands. 4.1 The brand launching and promotional strategies of Copsy Coffee. The results with respect to brand launching and promotional strategies of Copsy Coffee are presented as follows Branding and brand launching strategies The Arehally Coffee Growers Co-operative Society (ACGCS) conceived the business idea of entering to in the coffee powder business by launching its own brand as conceived by the then president of the ACGCS Mr. K. M. Raje Gowda. After detail deliberation the directors and members unanimously decided to enter in to the coffee powder business by launching its own brand in The business idea was strengthened by all the directors and members of the society. Further inspiration and advice was given by two friends who were in business and settled in Bangalore. Finally the society decided to launch the brand with following objectives, 1. To generate additional business. 2. To create sales avenue to the produce.

60 3. To realize higher income by eliminating the middlemen in the supply chain of the coffee powder. It was observed during study that the organisation of farmer s body lacks business experience and could not prepare project plan to enter to in the coffee powder business. The society decided to purchase coffee powder, roaster cum packager in 2008 for Rs. 3 lakhs. These machines were installed in existing society building in one of the rooms. The total price of the grinder cum packaging machine and roaster was Rs. 2 lakhs. The chairman and members of the society approached the Coffee Board with the idea of launching the coffee powder brand and requested them to extend helping hand in realizing the farmer s dream of owning their own Coffee powder brand. The Indian Coffee Board, under Ministry of Commerce, Govt. of India sanctioned a grant of Rupees one lakh. Lot of deliberations was held in the management committee and the members of the society to adopt a brand name for the product. Out of the several alternatives considered the final name selected was Copsy coffee with letters designed in brown and white colour. The colour composition of the brand was brown and white with a caption Direct from the growers The colour option for border of the package was brown representing coffee, attractive coffee plant with ripened fruit, roasted coffee beans and ethinic coffee cup and saucer image was designed on the package. It took few months time to launch the brand after conceiving the business idea. After meticulous planning and with the co-operation of Coffee Board the brand was launched on February The brand launching function was organised in Bangalore city, in the head office of Coffee Board. The then chairman of Coffee Board G. V. Krishna rau was the chief guest of brand launching function. The Kannada film star Mr. Punith Rajkumar attended the brand launching function. Mr. Puneeth Rajkumar endorsed the brand on the day of launching

61 without charging the honorarium as a gesture to serve the farming community of the Karnataka. The brand launching function attracted the attention of the media and was widely covered in the print media. The society selected Hassan, Mysore and Bangalore on pilot basis by making use of personnel contacts of the members of the society. Apart of the society had not taken up any advertisements to create awareness or increase the sales of the brand. However the pure quality and the word of the mouth by the customers/ retailers had made the brand to remain in the market Promotional strategies The Society had opened the stall in annual Dassehra exhibition event in Mysore and Krishimela in UAS Bangalore. A cup of the coffee to drink on the spot prepared out of Copsy Coffee was served as a free sample to visitors to promote the brand. The society had not employed the experts to handle the counters in the exhibitions rather they used their own staff and services. Big banners were displayed in selected parts of the Hassan city to create awareness about the brand. The leaflets highlighting the Copsy Coffee and its background were distributed to the visitors in the above mentioned places. An amount of Rs. one lakh was spent on the printing of leaflets, preparation of the banners and packaging material. The society employees had assisted the president in all activities of the Copsy Coffee. 4.2 The sales, distribution and pricing strategies of Copsy Coffee. The results with respect to assessment of sales, distribution and pricing strategies are presented as follows.

62 4.2.1 Sales strategies In Bangalore, with the help of friends and known people shops were identified in the regions of Nagarbhavi, Malleshwaram, Rajajinagar, Sahakar nagar, Kodigehalli, Yelhanka, Basavangudi, and assigned the job of the sales with 20 per cent the margin. The price for the 100gm pack was Rs. 20 and 20% of the MRP was considered as a margin to the retailers. The shops were identified and assigned the job of the sales in Hassan, Mysore and Bangalore Distribution strategies The coffee powder in Kgs pack were transported through KSRTC buses. The retail stall owners were used to go to the bus stop to receive the consignments. The society was bearer of luggage charges of transport of coffee from Sakaleshpur to concerned cities. However this system of delivering the consignments for retailers could not sustain for long time because of inherent problems. An alternative system of delivering the coffee powder packages personally by either president or by other office bearer to selected retailers was adopted Pricing strategies Price charged for local was 10 per cent less than price charged for selected consumer market. Freshly processed quality coffee beans were procured from the members. The payment was done after the receipt of the payment from the retailers. The price paid to the sellers of the coffee beans was decided based on the money realized from the sales of coffee after meeting all the marketing expenses Price revision It is noticed that the price of coffee powder increased twice mainly due to the increase in the coffee beans price. The MRP of Copsy coffee was Rs.160 per Kg in 2007 and Rs 200 per Kg currently. Several times society incurred the losses by not increasing the price immediately after increasing the beans price.

63 4.2.5 Payment The value of the coffee powder delivered to the retailers was collected either immediately after delivery or after 15 days from the date of delivery or next delivery time based on the convenience of retailers. 4.3 The product strategy and consumer preference of Copsy Coffee to other Coffee brands. The results with respect to product strategies and consumer preference of coffee powder brands are presented as follows Product strategies The Coffee powder available in the market in the form of the branded packets mainly consist of a blend of coffee and Chicory. It was observed that the society had given top priority in maintaining the quality of the coffee powder which was the main objective of the society so as to gain the customer preference and loyalty to the brand. The ACGCS adopted a product strategy of preparing two variants of the coffee based on coffee- chicory ratio blending. One for local customers in and around Arehally with coffee: chicory ratio of 65:35 and the other with coffee and chicory 80: 20. This was the unique selling proportion targeting true lovers of the real coffee in Hassan, Mysore and Bangalore. The product was made available in 100gm, 200gm and 500gm Packaging Declaratory labels on the packages were adopted as per legal provisions. The packaging design and the material was outsourced from Mumbai. A regular scientifically designed aluminium package material was used to packing of 100 and 200gm packs of 80:20 coffee, with vaccumised pneumatic machine. Wherein for pack 100 gm of 65:35 and 500gm of 80:20 coffee the ordinary plastic paper cover, by

64 sticking a sticker on the cover, packed with vaccumised pneumatic machine. The product was not offered for any quality certification by any institution or agency Custom hire services The society had introduced the novel scheme of providing value added services to the members by undertaking the job of preparing the coffee powder out of the coffee beans given by the members as well as non members. The charges were Rs. 6 per Kg and Rs. 10 per Kg for members and non members respectively Consumer profile An attempt was made to understand the profile of the Copsy Coffee consumers and consumers of other brands of coffee powder. The details is presented in table no Age of the sample respondents The age of the sample respondents varied in the range of 22 to 61 years. The average age of the respondents group was found to be 41.2 years. Also from the table it can be observed that per cent of the respondents were below the age of forty years and remaining per cent of the respondents were above the age of forty years Gender composition of the sample respondents The data was collected from the per cent of the male respondents and 6.67 per cent of the female respondents Education level of the sample respondents The graduate and post graduate constituted the biggest block among the respondents with and percent of the respondents. The majority (72.77 per cent) of the respondents had completed their graduation. The details are presented in table 4.1

65 Occupational status of the sample respondents Lot of diversity was found in the occupational status of the respondents and it varied from the farmer to the professor as well as business people. The education level of the respondents also varied from eighth standard to doctorate (Ph. D.). Table 4.1: Profile of the sample respondents Sl. Criteria Category Respondents (180) No. Copsy Coffee consumer Non Copsy Coffee consumer Total Per cent Below Age (Years) Above Total Male Gender Female Total High School PUC Diploma Education Graduate Post Graduate Doctorate Total

66 Table 4.2: Type of family of the sample respondents Sl. No. Family type Copsy consumers Non Copsy consumers Total Percentage 1 Nuclear Joint Total Fig 4.1: Type of family of the sample respondents

67 Type of family of the sample respondents Majority of the sample respondents (84.44 per cent) were living in nuclear families, while per cent of the sample households were living in joint family. The family size varied from three to twelve members with the average size of five members. The family type of the sample consumers is presented in the table Coffee brand awareness and consumption The information about coffee consumption and brand awareness of coffee powder brands is presented as follows Awareness of coffee powder brands by sample respondents The respondents were asked to mention the five brands of the coffee powder to know the awareness about the coffee brands in the market. They mentioned total eleven brands of the coffee powder which were different in different places. The per cent respondents were aware of the brand Tata coffee as one of the brand, followed by the Bru which constitutes about per cent, followed by Nestle which constitutes around per cent and Cothas coffee which constitutes per cent. The per cent of respondents were aware of Copsy coffee but the interesting fact is that 50 percent of the respondents were Copsy consumers which were selected purposefully for the study. Sadanand was last with 6.11 per cent. Everybody had mentioned the brands but few respondents had not mentioned less than five brands. The details are presented in the table 4.3.

68 Table 4.3: Awareness of coffee powder brands by sample respondents Sl. No. Coffee brands No. of Respondents Percentage 1 Tata Bru Nestle Cothas Copsy coffee Hiltop Coorg Shrinivasa Raghavendra Royal Sadanand Fig 4.2: Awareness of coffee powder brands by sample respondents

69 Frequency of coffee consumption in a day The frequency of coffee consumption at home as well as outside home was collected. It varies in the range of the three to fourteen cups per day. The average consumption was six cups per day per respondent. In case of the majority of the respondents the consumption frequency of coffee at home was more than consumption frequency of coffee outside the home Coffee consumption by family members The 91.11% of the respondents told that all the family members drink the coffee but a minority of 8.99% told that few members of the family do not drink the coffee. It includes the children and the female population of the family. The reason noticed was few of them don t like the milk so they drink tea instead of coffee Purchase decision of coffee powder in the family It is observed from the table 4.4 that woman was the main decision maker of the kitchen items. The decision regarding the purchase of coffee powder was taken by wife in case of per cent families, followed by husband in per cent families, children in case of 8.33 per cent and 6.67 percent families decides jointly. The details are presented in the table 4.4

70 Table 4.4: Purchase decision of coffee powder in the family Sl. Family No. of Respondents No. member Copsy coffee consumer Non Copsy consumer Total 1 Husband Wife Children All together Total Percentage Fig 4.3: Purchase decision of coffee powder in the family

71 Table 4.5: Frequency of the purchasing coffee powder Sl. No. Frequency No. of Respondents Percentage 1 Weekly Fortnightly As and when required Monthly Total Fig 4.4: Frequency of the purchasing coffee powder

72 Frequency of the purchasing coffee powder The purchasing frequency of coffee powder varied among consumers. The per cent respondents preferred to purchase the coffee powder every week, per cent purchase every fortnight, prefer to purchase as and when required and per cent purchase the coffee powder monthly once. The details are presented in the table Quantity of the coffee powder purchased The quantity of coffee powder purchased varied with the family size and the frequency of consumption per day. It varied from 0.5 Kg to 1.5 Kg per month per family. The average quantity purchased per month of sample group is 0.64 Kg Preference of store format for coffee powder purchase Most (42.62 per cent) of the respondents prefered the kirana store for the purchasing of the coffee powder followed by retail store which constitute around 30 per cent and departmental store which constitutes 27 per cent of the respondents. The details are presented in the table 4.6.

73 Table 4.6: Preference of the store format for the coffee powder purchase Sl. Source No. of Respondents Percentage No. Bangalore Mysore Hassan Total 1 Kirana shop Departmental store 3 Retail outlet Total Fig 4.5: Preference of the store format for the coffee powder purchase

74 Table 4.7: Media source of advertisement and awareness about different brands of coffee powder Sl. No. Source No. of Respondents Percentage 1 TV ads Leaflets/brochures Exhibitions & fairs Magazines Outdoor ads Suggestions from friends & relatives 7 Radio ads Briefing by sales personnel/ Retailers 9 Issue of pre samples P e r c e n t a g e Fig 4.6: Media source of advertisement and awareness about different brands of coffee powder

75 Media source of advertisement and awareness about different brands of coffee powder. The Television was the best source of the advertisement as concern to the advertisement media. Cent per cent respondents came to know about the coffee brands by television. The per cent of the sample respondents were of the opinion that the T.V. is the major source of the advertisement to get revise about the coffee powder brands. The leaflet was considered as a second best source which attributes per cent followed by Exhibitions and Melas (13.89 per cent), magazines (36.67 per cent) and outdoor ads. (36.11 per cent) The other sources as such radio ads, Issue of free samples, Briefing by sales personnel, recommendations by friends were mentioned as minor sources. The details about the media and advertisements are as follows in table Brand preference of non Copsy coffee consumers There was a brand proliferation in consumable products in recent past. The brand preference of non Copsy coffee consumers varied with the locality. There were total Ten brands noticed, which were presently consuming by non Copsy coffee consumers. The per cent of the sample respondents were consuming Tata coffee, per cent were consuming Bru coffee followed by Nestle coffee (10 per cent) and Cothas coffee (7.78). Apart from these there were few local brands with minor share as such Shrinivasa Coffee (7.78 per cent), Raghavendra coffee (7.78 per cent), Hiltop Coffee (5.556 per cent), Royal Coffee (3.33 per cent), and Sadanand coffee, Coorg Coffee each constitutes 2.2 per cent. Also 2.2 per cent of the respondents use their own coffee beans from their plantations to use as coffee powder. The detail is presented in the table 4.8.

76 Table 4.8: Brand preference of non Copsy coffee consumers Sl. No. Brand No. of Respondents Percentage 1 Tata Bru Nestle Cothas Coorg Hiltop Shrinivasa Raghavendra Royal Sadanand Home-made (unbranded) Total Raghavendra 8% Shrinivasa 8% Hiltop 6% Sadanand Own Royal 2% 2% 3% Tata 27% Coorg 2% Cothas 8% Nestle 10% Bru 24% Fig 4.7: Brands preference of non Copsy coffee consumers

77 Table 4.9: Second preference of brand by consumers in case of unavailability of the preferred brand Sl. No. Brand Copsy Coffee consumers Non Copsy consume r Total Percentag e 1 Tata Bru Nestle Cothas Hiltop Coorg Shrinivasa Raghavendra Other available brand 10 Total Fig 4.8: Second preference of brand by consumers in case of unavailability of the preferred brand

78 Second preference of brand by consumers in case of unavailability of the preferred brand Out of the total 180 coffee consumers per cent of the respondents preferred Tata as a next alternative, per cent respondents would prefer Bru, 20 per cent would prefer Nestle coffee powder brand per cent of the sample respondents would prefer the brand whichever available at the source of the purchasing, Hiltop and Raghavendra coffee each would be preferred by 5.56 per cent and 4.44 per cent would prefer Cothas coffee. The details are presented in the table Consumer response about Copsy coffee The sample consumers response about Copsy Coffee is presented as follows Source of awareness about the Copsy coffee brand Out of the total consumers who know the Copsy coffee brand majority (59.60 per cent) of the respondents said exhibition, per cent said it as a leaflet and remaining 9.09 per cent said friend was the source the awareness or information about Copsy coffee. The details are presented in the table 4.10.

79 Table 4.10: Source of awareness about the Copsy coffee brand Sl. No. Source of Information No. of Respondents Percentage 1 Exhibition Leaflet/ Pamphlet Friends Total Fig 4.9: Source of awareness about the Copsy coffee brand

80 Table 4.11: Copsy coffee s quality rating by consumers Sl. No. Rating Respondents Percentage 1 Excellent Very good good Fair Poor Total Fig 4.10: Copsy coffee s quality rating by consumers

81 Copsy coffee s quality rating by consumers The consumers were asked to rate the Quality of the Copsy coffee on five scale as excellent, very good, good, fair and poor. The majority of the Copsy Coffee consumers were rated quality of the Copsy coffee as excellent followed by per cent rated it as very good and 5.56 per cent rated it as good. No one had rated it as fair or poor quality brand. The details are presented in the table : Rating of Copsy coffee s price by consumers. The consumers were asked to rate the price of the Copsy coffee as low, on par with market, moderate, high and Very high. The majority of the consumers (71.11 per cent) were of the view that the price is on par with market, 20 per cent rate it as moderate, 5.56 per cent rate it as a low, 3.33 per cent rate it as a high and no one rated it as a high price. The details are presented in the table 4.12.

82 Table 4.12: Rating of Copsy coffee s price by consumers Sl. No. Rating No. of Respondents Percentage 1 Low On par with market price Moderate High Very high Total Fig 4.11: Rating of Copsy Coffee s price by consumers.

83 Table 4.13: Rating of Copsy coffee s packaging by consumers. Sl. No. Packaging No. of Respondents Percentage 1 Attractive Qualitative Durable Defective Other Total Fig 4.12: Rating of Copsy coffee s packaging by consumers.

84 : Rating of Copsy Coffee s packaging by consumers. The consumers were asked to rate the packing of the Copsy coffee as attractive, qualitative, durable, defective and other. The majority of the consumers (36.02 per cent) were of the view that the packaging is a qualitative, per cent rated it as attractive, per cent rated it as a durable and 4.3 per cent rate it as defective. The details are presented in the table Copsy coffee consumer s awareness about the declaratory label on the package The majority of the consumers (76.84per cent) were satisfied about the information printed on the package, were not satisfied about the information printed on the package and 4.2 per cent not aware about the printed information on the package. The details are prescribed in the table 4.14.

85 Table 4.14: Copsy coffee consumer s awareness about the declaratory label on the package Sl. No. Response No. of Respondents Percentage 1 Satisfied Not satisfied Not aware Total Fig 4.13: Copsy coffee consumer s awareness about the declaratory label on the package

86 Table 4.15: Overall rating of Copsy coffee brand Sl. No. Rating No. of Respondents Percentage 1 Best Somewhat better Almost the same Not good Worst Total Somewhat better 15% Not good 0% Worst 0% Almost the same 2% Best 83% Fig 4.14: Overall rating Copsy coffee brand

87 : Overall rating of Copsy coffee brand The consumers were asked to rate the overall opinion on the Copsy coffee on five point scale as best, somewhat better, almost the same that of other brands, not good and worst. The majority (83.33 per cent) of the Copsy coffee consumers were rated Copsy coffee as best followed by per cent as somewhat better and 2.22 per cent as almost the same that of other brand. No one had rated as not good or worst brand. The details are presented in the table : Copsy coffee consumer satisfaction level The Copsy coffee consumers were asked to rate the satisfaction level as extremely satisfied, satisfied, somewhat satisfied and unsatisfied. The majority (80.0 per cent) of the Copsy coffee consumers were extremely satisfied followed by per cent satisfied and 4.44 per cent somewhat satisfied. No one is unsatisfied. The details are in the table 4.16.

88 Table 4.16: Copsy coffee consumer satisfaction level Sl. No. Level of satisfaction No. of Respondents Percentage 1 Extremely satisfied Satisfied Somewhat satisfied Unsatisfied Total Fig 4.15: Copsy coffee consumer satisfaction level

89 Table 4.17: Copsy coffee consumer s recommendation to the others Sl. No. Recommendation No. of Respondents Percentage 1 Yes Probably No Total Not sure 0% No 4% Probably 20% Yes 76% Fig 4.16: Copsy coffee consumer s recommendation to the others