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A Project Study Report On Training Undertaken at

CONSUMER BEHAVIOUR TOWARDS IN PARLE PRODUCT


Submitted in partial fulfillment for the Award of Degree of Master of Business Administration

Submitted By : MD.MANWAR KHAN MBA III SEM

Submitted to : Ms. Padma sharma Faculty

ARYA COLLEGE OF ENGINERRING & RESEARCH CENTRE 2010-12 1

PREFACE

We look our training at Parle product . During the training was to get an overview of the food Industry of New Delhi. It was a first hand experience to get exposed to the professional set-up and face the Food Industry, which was really a great experience. Training period was a learning experience. When business is involved, an experience counts a lot. experience are an instrument, which leads towards success. Working with Parle Product. has been a pleasure. I take this opportunity to present the project report and sincerely hope that it will be as much knowledge enhancing to the readers as it was to use during the fieldwork and the compilation of the report.

ACKNOWLEDGEMENT
I express my sincere thanks to my project guide Ms. Padma Sharma (Faculty) Management Deptt., Arya College of Engineering & Research Centre for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge her for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he had provided to me with all stages fo this project. I am also thankful to our H.O.D Sir Dr.Manish Jain encouragement and moral support has been a source of inspiration to me.

Md. Manwar Khan

INDEX
Introduction to the industry Research methodology

Title of the Study Objective of Study Type of Research Sample Size and method of selecting sample Scope of Study Limitation of Study

Facts & Finding Analysis & Interpretation Conclusion Recommendation & suggestion Quessionarrie Bibiliography

Introduction of industry
PARLE is the market leader in the organized biscuit and candy market in India. Biscuits contribute to more than 80% of Parles total turnover. Other products include cookies and candys. The biscuit market in India is estimated to be 1.1mn tpa, valued at Rs35bn. The unorganized sector accounts for over 50% of the market. The market has been growing at a CAGR of 6-7% pa. Per capita consumption of biscuits is estimated at a low 1.5kgs, reflecting the huge potential for growth. Manufacturing was reserved for small-scale up to 1997, which put large players at a disadvantage. In the organized sector, Parle and Britannia are the only national players with dominant market shares. Other organized players include domestic players like Bakemans, Champion, Quality, Priya and MNCs like Smith Kline Consumer, Kelloggs, Sara Lee, Heinz, Excelsia (Nestle) and United Biscuits.

INTRODUCTION TO THE ORGANIZATION


Board of Directors Board of Directors as on Chairman : Vijay Kanti Lal Chauhan Managing Director : MR. Pitamber Mohan Lal MR .Narotam Mohan Lal MR .Kanti Mohan Lal MR. Vijay Kanti Mohan Lal MR. Shard Pitamber Chauhan MR. Shard Kanti Lal Chauhan

Plant location :
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MUMBAI NIMRANA BAHADURGARH BANGLORE


Parle core businesses constitute of Bakery and Candy products. Bakery products account for 90% of the revenues. Candy products contribute to 10% of Parles annual turnover of Rs13.38bn. Biscuits (82.7% of turnover) Revenues from biscuit were Rs11.07bn in FY01. The company sold 214,214 tons of biscuits registering a volume growth of 11% yoy. Biscuit sales in value terms registered a 13.2% yoy growth. Parle has a 40% volume share and 48% value market share in the organized biscuit market. The company presently has an installed capacity of 111,000 tons for biscuits. Production in FY01 was 59657 tons against 62034 tons in FY00. Over 70% of biscuits sold are outsourced by the company.

Candy Products (9.8% if turnover)


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The company's diversification into candy business has been successful. Candy product sales were Rs. .87bn in FY01. Profit & loss account (Rs mn)

Period ended No. of months Gross Sales Excise Duty Net sales Other income Total income Raw materials

03/99 12 8,478.4 (235.7) 8,242.7 113.4 8,356.1 2,863.4

03/04 12 10,301.4 (277.7) 10,023.8 130.6 10,154.4 3,653.2 (33.7) 1,224.7 4,844.1 829.1 123.2 584.0 401.0 2,632.1 9,413.6 740.8 6.3 734.5 158.9
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03/05 12 11,698.4 (302.9) 11,395.5 159.1 11,554.6 4,042.1 (45.2) 1,257.3 5,254.2 904.5 161.2 770.1 471.5 2,957.8 10,519.2 1,035.5 73.2 962.3 171.8

03/06 12 13,384.2 (525.1) 12,859.0 161.2 13,020.2 3,880.7 (114.9) 1,850.1 5,615.9 953.0 152.9 852.9 613.8 3,519.6 11,708.1 1,312.2 100.9 1,211.3 188.9

Stock adjustment (Inc)/ Dec (52.3) Purchase of finished goods 949.6 Cost of material Employee cost Power & fuel Advertising/ public Freight & forwarding Other expenses Cost of sales PBIDT Interest & finance charges PBDT Depreciation 318.5 2,326.9 7,764.6 591.4 49.2 542.2 118.2 promotion/ 525.2 3,760.7 725.7 107.7

PBT Provision for taxation Extraordinary items/ Prior

424.0 134.7 -

575.6 180.0 395.6 113.4 39.6 148.9 577.0

790.5 260.7 (19.6) 510.2 139.1 29.4 159.1 283.1

1,022.4 434.1 117.1 705.4 168.8 23.5 129.4 69.0

year adj. Adjusted PAT Dividend payout Forex inflow Forex outflow Book value of quoted 150.4 investments Market value of quoted 165.3 investments Contingent liabilities RATIOS As % of net sales Gross sales Excise duty Net sales Other income Total income Cost of material Employee costs Selling expense Other expenses Cost of sales Profitability ratios (%)
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289.3 102.1 64.4 128.2

630.6 405.5

320.0 207.9

88.9 592.0

167.3

102.9 (2.9) 100.0 1.4 101.4 45.6 8.8 10.2 28.2 94.2

102.8 (2.8) 100.0 1.3 101.3 48.3 8.3 9.8 26.3 93.9

102.7 (2.7) 100.0 1.4 101.4 46.1 7.9 10.9 26.0 92.3

104.1 (4.1) 100.0 1.3 101.3 43.7 7.4 11.4 27.4 91.0

PBIDT excl. other income PBIDT PBDT Profit before tax Profit after tax Growth ratios (% you) Net sales PBIDT PBT PAT Payout ratios (%) Tax (% of PBT) Dividend (% of PAT)

5.8 7.2 6.6 5.1 3.5

6.1 7.4 7.3 5.7 3.9

7.7 9.1 8.4 6.9 4.5

9.0 10.2 9.4 8.0 5.5

13.5 61.0 43.8 61.8

21.6 25.3 35.8 36.8

13.7 39.8 37.3 29.0

12.8 26.7 29.3 38.3

31.8 35.3

31.3 28.7

33.0 27.3

42.5 23.9

Sales breakup Period ended No. of months Sales value(Rs mn) Biscuits Candy Sales volume(unit) Biscuits (Ton) Candy 144,213.0 2,249.0 167,467.0 2,809.0 192,646.0 3,003.0 214,214.0 3,082.0 7,248.0 169.8 8,621.6 237.4 9,783.7 242.3 11,073.0 271.4 03/98 12 03/99 12 03/00 12 03/01 12

Unit realization (Rs/unit)


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Biscuits (Ton) Candy

50,259 75,495

51,482 84,504

50,786 80,698

51,691 88,050

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Our Bureau

Mr. Vijay K L Chauhan Kolkata, June 20 IN an effort to bring about future growth, Parle Industries Ltd is looking at new business opportunities beyond biscuits but within the larger ambit of the food sector. The company is hoping to increase its revenues through both the organic and acquisition route, according to Mr. Chauhan, Chairman of Parle Industries, who chaired the 87th annual general meeting of the company here.

RESEARCH METHODOLOGY:
According to Clifford, woody research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. Marketing research is the systematic design, collection, analysis and reporting of data and findings and relevant to specific marketing situations facing the company.
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Research is, thus, an original contribution to the existing stock of knowledge making for its advancement. It is the pursuit of truth with the help of study, observation, comparison and experiment. In short, the search of knowledge through objectives and systematic method of finding solution to a problem is research. The systematic approach concerning generalization and the formulation of theory is also research.

OBJECTIVES OF RESEARCH:
The main aim of research is to find out the truth which is hidden and which has not been discovered yet. However, each research study has its own specific purpose. Theses can be 1. To gain familiarity with a phenomenon or to achieve new insights into it (exploratory or formative research studies). 2. To portray accurately the characteristics of a particular individual, situation or a group (descriptive research). 3. To determine the frequency with which some thing occurs or with which it is associated with something else (diagnostic research).
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4. To test a hypothesis of a casual relationship between variables (hypothesis testing research).

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OBJECTIVE OF MY RESEARCH:
1. To find out the major factors which contribute to the sale of products. 2. To explore the satisfaction level of (consumer) to collect different types of views of investors about the products. 3. To bring in the lime light consumers perception about the products and services of Parle limited. 4. To find out the most potential Customer and the most potential seller in Delhi . 5. To find out the investment behavior of marketing 6. To enhance the sale of insurance through proper inputs.

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OBJECTIVE OF THE STUDY


The main purpose of the study was to know the consumer behavior, tradition and awareness of parle product among the people; to measure the effective of electronic media; to analyze the media behavior of the people; and to identify the first source of information for consumer products. The study has been conducted to collect the information about tradition and consumer behavior for a particular group, and the role of different source of information in buying a product. The main objectives of the study as follows:

To know the Parle Product awareness among the people. To measure the effectiveness of Distribution channel of the PARLE. To analyze the consumer behavior in the Neemrana Market. To identify first source of information about product.

To identify the change in attitude of the consumer due to electronic media. To identify the factors which affects the change in decision of the consumer

HE MARKETING STRENGTH The extensive distribution network, built over the years, is a major strength for Parle Products. Parle biscuits & sweets are available to consumers, even in the most remote places and in the smallest of villages with a population of just 500. Parle has nearly 1,500 wholesalers, catering to 4,25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force services these wholesalers & retailers. Additionally, there are 31 depots and C&F agents supplying goods to the wide distribution network. The Parle marketing philosophy emphasizes catering to the masses. They constantly endeavor at designing products that provide nutrition & fun to the common man. Most Parle offerings are in the low & mid-range price segments. This is based on their understanding of the Indian consumer psyche. The value-for-money positioning helps generate large sales volumes for the products. However, Parle Products also manufactures a variety of premium
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products for the up-market, urban consumers. And in this way, caters a range of products to a variety of consumers.

LIMITATION OF THE STUDY The effectiveness of project and consumer behavior is measured in keeping in mind the constraints and limitation given below: The present study was confined to Neemrana and its adjoining areas. The findings of this study may not applicable to other areas. The limitation and biasness of sampling techniques used in this study may influence the findings of this study. Due to limitation of time and resources, all the possible factors influencing the report could not be considered. The study of tradition and consumer behavior may not well over a period of time4 due to various improvements in the present electronic media.

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TYPES OF RESEARCH:
The basic types of research are as follows Descriptive Research: The major purpose of this research is description of the state of affairs, as it exists at present.

Analytical Research: In this research, the researcher has to use facts or


information already available, and analyze these to make a critical evaluation of the material Applied Research: It aims at finding a solution for an immediate problem facing a society or an industrial/ business organization. Fundamental Research: It mainly concerned with generalizations and with the formulation of a theory.

Quantitative Research: It is based on the measurement of quantity or


amount. It is applicable to phenomena that can be expressed in terms of quantity. Qualitative Research: It is concerned with the qualitative phenomenon, i.e., phenomena relating to or involving quality or kind.

Conceptual Research: It is related to some abstract ideas or theory. Empirical Research: It is data- based research, coming with conclusions,
which are capable of being verified by the observation and experiment Diagnostic Research: Such a research fallow case -study method or indepth approaches to reach the basic casual relation. Exploratory Research: The objective of this research is the development of hypothesis rather than their testing.

MY RESEARCH:
I was gathering the consumer behavior of the Parle product in Neemrana Region, which is being done by me first. Therefore, my research is exploratory research.

RESEARCH DESIGN
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A research design is the arrangement of conditioned for collection and analysis of Data in a manner that aims to combine relevance to the research purpose which economy in procedures So it is clear from the above definition that very first step in the process of marketing research is systematic design which can be defined as a specification of methods and procedure for acquiring the information need to structure or solve problems. The main characteristics of research design can be summarized in two words:

ANTICIPATION SPECIFICATION

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FUNCTIONS OF RESEARCH DESIGN:


Statement of evidence needed to solve the problem. Anticipation of what will be done with data to provide answer to problems. Specification of evidence from where it will be obtained and how. Statement of basic schemes whereby answers will be revealed and validated. Guide for the Calculation and approval of the feasibility and cost of the project. revision of blue prints or plan for guiding the work.

TYPES OF RESEARCH DESIGN: There are three types of research design: 1. Research design in case of exploratory research studies. 2. Research design in case of descriptive and diagnostic research studies. 3. Research design in case of hypothesis testing research studies.

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MY RESEARCH DESIGN:
My Research was exploratory research so I am discussing only exploratory research design. In exploratory research design hypothesis is developed on the basis of the influencing variables, which are available. The main purpose to do research design is to find new ideas for which the researcher must always remain alert. The possibilities of ideas are explored but in case a better idea is found the focus of investigation gets change. There are three principle stages of exploratory research design.

FIRST STAGE SECOND STAGE THIRD STAGE


Problem.

: Survey of secondary information sources. : Interviews with knowledgeable persons. : Examination of situation that are analogues to the

SAMPLING DESIGN:
A Sample design is a definite plan for obtaining a sample form a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample. Sample design may as well lay down the number of items to be included in the sample i.e., the size of the sample.

DIFFERENT TYPES OF SAMPLE DESIGNS:


There are two types of sample designs.

1. Non probability sampling. 2. Probability sampling.

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MY SAMPLING DESIGN:
For the survey of India bulls consultancy Pvt. Ltd. In Lucknow City, my respondents were approximately 5lacs. So the universe was large (5lacs) in this case. Therefore, I took the sample in this case while I surveyed the universe. Therefore, the data are approximately quite accurate.

METHODS OF DATA COLLECTION: There are two types of data. 1. PRIMARY DATA 2. SECONDARY DATA

PRIMARY DATA:
The primary data are those, which are collected afresh and for the first time, and thus happen to be original in character.

SECONDARY DATA:
The secondary data are those which have already been collected by someone else and which have already been passed through statistical problem. The methods of collecting primary and secondary data differ since primary data are to be originally collected while in case of secondary data the nature of data collection work is merely that of compilaion.

CLASSIFICATION OF SECONDRY DATA


INTERNAL SECONDARY DATA
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EXTERNAL SECONDARY DATA 1. SALES ANALYSIS 2. INVOICE ANALYSIS 3. ACCOUNTING RECORDS

INTERNAL SECONDARY DATA

EXTERNAL SECONDARY DATA


1. LIBRARIES 2. OITERATURE 3. PERIODICALS 4. CINSUS AND REGISTRARION DATA CENSUS OF POPULATION CENSUS OF AGRICULTURE CENSUS OF CATTLE

COLLECTION OF PRIMARY DATA:


We collect primary data during the course of doing experiment in an experimental research but in case we do research of the descriptive type and performs surveys, whether sample surveys or census surveys, then we can obtain primary data either through observation or through direct communication with respondents in one form or another or through personal interviews this means that there are several methods of collecting primary data, particularly in surveys and descriptive researches. The important ones are

1. 2. 3. 4.

Observation Method Interview Method Through questionnaires Through Schedules

COLLECTION OF SECONDARY DATA:

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When the researchers utilize the secondary data, then he has to look into various sources from where he can obtain them. Secondary data may be either published data or unpublished data. Usually published data are available in

Various publications of the central, state and local governments. Various publications of foreign governments or of international bodies and their subsidiary organizations. Technical and trade journals. Books, Magazines and newspapers. Report and publications of various associations connected with business and industry, banks, stock exchanges etc. Reports prepared by research scholars, universities, economists etc. in different fields.

FACTORS AFFECTING BUYING BEHAVIOUR CONSUMER OF PARLE PRODUCT: Demographics Geographics DEMOGRAPHICS
Size of population: According to the census 2011,as of May2001,the population of India stood at 1,027Million of which 742Million lived in rural areas and 285 Millions in urban areas. Literacy and education: According to the Census 2011,the Nations average literacy rate is 65.4%.Exhibit 18.1 shows the growth in literacy rate since 1951.

GROWTH IN LITERACY RATE OF 100 CUSTOMERS:


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YEAR 2008 2009 2010 2011

LITERACY RATE% 43.7% 52.2% 65.4% 70.2%

GEOGRAPHICS:
We mentioned earlier that as of May 2011,the population of India stood at1027 Million,with742 million people living in rural areas and 285 million urban areas.In terms of percentage 73% of population is in rural areas and 27% in urban areas.

CLASSIFICATION OF CONSUMERS BASED ON ECONOMIC STATUS


The affluent group The middle class The relatively poorer section The BPL section

LIMITATION OF THE STUDY


The effectiveness of project and consumer behavior is measured in keeping in mind the constraints and limitation given below:

The present study was confined to Neemrana and its adjoining areas. The findings of this study may not applicable to other areas.
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The limitation and biasness of sampling techniques used in this study may influence the findings of this study. Due to limitation of time and resources, all the possible factors influencing the report could not be considered. The study of tradition and consumer behavior may not well over a period of time4 due to various improvements in the present electronic media.

Family Decision Making The Family Life Cycle. Individuals and families tend to go through a "life cycle." The simple life cycle goes from Child/teenager ---> young single ---> young couple* ---> full nest Family Decision Making: Individual members of families often serve different roles in decisions that ultimately draw on shared family resources. Some individuals are information gatherers/holders, who seek out information about products of relevance. These individuals often have a great deal of power because they may selectively pass
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on information that favors their chosen alternatives. Influencers do not ultimately have the power decide between alternatives, but they may make their wishes known by asking for specific products or causing embarrassing situations if their demands are not met. The decision maker(s) have the power to determine issues such as: whether to buy; which product to buy (pick-up or passenger car?); which brand to buy; where to buy it; and when to buy. Note, however, that the role of the decision maker is separate from that of the purchaser. From the point of view of the marketer, this introduces some problems since the purchaser can be targeted by point-of-purchase (POP) marketing efforts that cannot be aimed at the decision maker. Also note that the distinction between the purchaser and decision maker may be somewhat blurred: the decision maker may specify what kind of product to buy, but not which brand; the purchaser may have to make a substitution if the desired brand is not in stock; the purchaser may disregard instructions (by error or deliberately). It should be noted that family decisions are often subject to a great deal of conflict. The reality is that few families are wealthy enough to avoid a strong tension between demands on the familys resources. Conflicting pressures are especially likely in families with children and/or when only one spouse works outside the home. Note that many decisions inherently come down to values, and that there is frequently no "objective" way to arbitrate differences. One spouse may believe that it is important to save for the childrens future; the other may value spending now (on private schools and computer equipment) to help prepare the children for the future. Who is right? There is no clear answer here. The situation becomes even more complex when more partiessuch as children or other relativesare involved.
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FACTS AND FINDINGS Consumer Behavior and Marketing Strategy


The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products); The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media); The behavior of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome;
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How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.

One "official" definition of consumer behavior is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." Although it is not necessary to memorize this definition, it brings up some useful points:
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Either behavior occurs for the individual, or in the context of a group (e.g., friends influence what kinds of clothes a person wears) or an organization people on the job make decisions as to which products the firm should use. the study of how they are purchased. Product use is often of great interest to the marketer, because this may influence how a product is best positioned or how we can encourage increased consumption. Since many environmental problems result from product disposal (e.g., motor oil being sent into sewage systems to save the recycling fee, or garbage piling up at landfills) this is also an area of interest.

2 Consumer behavior involves the use and disposal of products as well as

The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy.

There are four main applications of consumer behavior:


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The most obvious is for marketing strategyi.e., for making better marketing campaigns. For example, by understanding that consumers are more receptive to food advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon. By understanding that new products are usually initially adopted by a few consumers and only spread later, and then only gradually, to the rest of the population, we learn that (1) companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) it is important to please initial customers,
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since they will in turn influence many subsequent customers brand choices.
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A second application is public policy. In the 1980s, Acutance, a near miracle cure for acne, was introduced. Unfortunately, Acutance resulted in severe birth defects if taken by pregnant women. Although physicians were instructed to warn their female patients of this, a number still became pregnant while taking the drug. To get consumers attention, the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers. Social marketing involves getting ideas across to consumers rather than selling something. Marty Fishbein, a marketing professor, went on sabbatical to work for the Centers for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. The best solution, obviously, would be if we could get illegal drug users to stop. This, however, was deemed infeasible. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them, a goal that was believed to be more realistic.

Social factors 1) Reference groups- parle hide & seek is targeted at the youth. So for this product consumers are influenced by their friends and siblings. 2) Status- Parle hide & seek is a high priced product. So consumers in the higher income groups would prefer to buy the product over other brands since it would be a matter of higher status. Personal factors 1) Age- the advertisements of this product are such that people in the age group from 15 to 28 are likely to be influenced to buy this product. But at the same time, since this product has been endorsed by a celebrity (Hrithik Roshan) and since it is made of chocolate chips, children are also likely to be major consumers. 2) Occupation- Major Consumers for Parle hide & seek are students. 3) Incomesince it is a high-priced product; the potential consumers for this
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product are high income earners. A person who is earning more is more likely to buy this product than a person who earns comparatively lower income. Psychological factor PerceptionConsumers perceive this brand as tasty and crispy ...chocolate not very sugary. It is perceived as a brand leader in this segment and some firmly believe that there is no competitor while mostly people regarded Britannia bourbon as its main competitor; very few consumers know that good day- choco nuts is its

competitor. Segmentation
If we divide the whole market on basis of their preferences foe sweetness and saltiness in the biscuits then thev possible outcome would be that the preferences are clustered near some tastes i.e. the consumers would not like to have something really vague like 50%salty, 25%sweet and25%creamy.That is why the preferences are clustered and not diffused wherein the preferences have to be very extreme and vague. Parle as a company makes use of this clustered preferences and manufactures biscuitsfor each and every cluster. For e.g. Monaco for entirely salty biscuits and its latest product Krackjack-cream Although the text makes references to segmentation, this issue is not discussed explicitly in much detail. However, segmentation is important in consumer analysis because understanding the consumer will allow us segment the market more meaningfully. Segmentation basically involves dividing consumers into groups such that members of a group (1) are as similar as possible to members of that same group but (2) differ as much as possible from members other segments. This enables us then to "treat" each segment differentlye.g., by: 1 2 3 Providing different products (e.g., some consumers like cola taste, while others prefer lime) Offering different prices (some consumers will take the cheapest product available, while others will pay for desired features) Distributing the products where they are likely to be bought by the targeted segment.
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In order for a segment structure to be useful: 1 Each segment must have an identityi.e., it must contain members that can be described in some way (e.g., price sensitive) that behave differently from another segment. 2 Each segment must engage in systematic behaviors (e.g., a price sensitive segment should consistently prefer the low price item rather than randomly switching between high and low priced brands). Each segment must offer marketing mix efficiency potentiali.e., it must be profitable to serve. For example, a large segment may be profitable even though the competition it attracts tends to keep prices down. A smaller segment may be profitable if, for example, it is price insensitive or can be targeted efficiently (e.g., if its members consistently subscribe to one magazine where all the companys advertising can be put). Some segments are not cost effective. For example, a small group of consumers would love to have a no-sports news channel (similar to CNN), but we are just too small a group to profitable.
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Group Influences
Humans are inherently social animals, and individuals greatly influence each other. A useful framework of analysis of group influence on the individual is the so called reference groupthe term comes about because an individual uses a relevant group as a standard of reference against which oneself is compared. Reference groups come in several different forms. The aspirational reference group refers to those others against whom one would like to compare oneself. For example, many firms use athletes as spokespeople, and these represent what many people would ideally like to be. Associative reference groups include people who more realistically represent the individuals current equals or nearequalse.g., coworkers, neighbors, or members of churches, clubs, and organizations. Finally, the dissociative reference group includes people that the individual would not like to be like. For example, the store literally named The Gap came about because many younger people wanted to actively dissociate from parents and other older and "uncool" people. The Quality Paperback Book specifically suggests in its advertising that its members are "a breed apart"

from conventional readers of popular books.

Personality and consumer behavior.


Traditional research in marketing has not been particularly successful in finding a link between personality and consumer behavior. Part of the problem here is that much of the theory has been developed by clinical psychologists who have tended to work with maladjusted people. Not surprisingly, research that sought to predict, based on standard personality inventories, which kinds of consumers would buy Chevrolets as opposed to Fords was not successful.

. Situational influences
Specific circumstances often influence consumer behavior. For example, consumers in a rush are likely to take the most convenient product available. Consumers whose attention is demanded elsewhere are likely to disregard commercial messages. Consumers shopping for a special occasion (e.g., a wedding) may buy different products.

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Behavioral intention. The behavioral intention is what the consumer plans to do with respect to the object (e.g., buy or not buy the brand). As with affect, this is sometimes a logical consequence of beliefs (or affect), but may sometimes reflect other circumstances--e.g., although a consumer does not really like a restaurant, he or she will go there because it is a hangout for his or her friends . Attitude-Behavior Consistency. Consumers often do not behave consistently with their attitudes for several reasons: Ability. He or she may be unable to do so. Although junior high school student likes pick-up trucks and would like to buy one, she may lack a drivers license.

Competing demands for resources. Although the above student would like to buy a pickup truck on her sixteenth birthday, she would rather have a computer, and has money for only one of the two. Social influence. A student thinks that smoking is cool, but since his friends think it is disgusting, he does not smoke. Measurement problems. Measuring attitudes is difficult. In many situations, consumers do not consciously set out to enumerate how positively or negatively they feel about mopeds, and when a market researcher asks them about their beliefs about mopeds, how important these beliefs are, and their evaluation of the performance of mopeds with respect to these beliefs, consumers often do not give very reliable answers. Attitude Change Strategies. Changing attitudes is generally very difficult, particularly when consumers suspect that the marketer has a self-serving agenda in bringing about this change (e.g., to get the consumer to buy more or to switch brands).
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Changing affect. One approach is to try to change affect, which may or may not involve getting consumers to change their beliefs. One strategy uses the approach of classical conditioning try to "pair" the product with a liked stimulus. For example, we "pair" a car with a beautiful woman. Alternatively, we can try to get people to like the advertisement and hope that this liking will "spill over" into the purchase of a product. Changing behavior. People like to believe that their behavior is rational; thus, once they use our products, chances are that they will continue unless someone is able to get them to switch. One way to get people to switch to our brand is to use temporary price discounts and coupons; however, when consumers buy a product on deal, they may justify the purchase based on that deal (i.e., the low price) and may then switch to other brands on deal later Changing beliefs. Although attempting to change beliefs is the obvious way to attempt attitude change, particularly when consumers hold unfavorable or inaccurate ones, this is often difficult to achieve because consumers tend to resist. Several approaches to belief change exist: Change currently held beliefs. It is generally very difficult to attempt to change beliefs that people hold, particularly those that are strongly held, even if they are inaccurate. For example, the petroleum industry advertised for a long time that its profits were lower than were commonly believed, and provided extensive factual evidence in its advertising to support this reality. Consumers were suspicious and rejected this information, however. Change the importance of beliefs. Although the sugar manufacturers would undoubtedly like to decrease the importance of healthy teeth, it is usually not feasible to make
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beliefs less important--consumers are likely to reason, why, then, would you bother bringing them up in the first place? However, it may be possible to strengthen beliefs that favor us-e.g., a vitamin supplement manufacturer may advertise that it is extremely important for women to replace iron lost through menstruation. Most consumers already agree with this, but the belief can be made stronger.

Add beliefs. Consumers are less likely to resist the addition of beliefs so long as they do not conflict with existing beliefs. Thus, the beef industry has added beliefs that beef (1) is convenient and (2) can be used to make a number of creative dishes. Vitamin manufacturers attempt to add the belief that stress causes vitamin depletion, which sounds quite plausible to most people. Change ideal. It usually difficult, and very risky, to attempt to change ideals, and only few firms succeed. For example, Hard Candy may have attempted to change the ideal away from traditional beauty toward more unique self expression.

The self-concept. The consumer faces several possible selves. The actual self reflects how the individual actually is, although the consumer may not be aware of that reality (e.g., many anorexic
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consumers who are dangerously thin believe that they are in fact fat). In contrast, the ideal self reflects a self that a person would like to have, but does not in fact have. For example, a couch potato may want to be a World famous athlete, but may have no actual athletic ability. The private self is one that is not intentionally exposed to others

Situational influences Specific circumstances often influence consumer behavior. For example, consumers in a rush are likely to take the most convenient product available. Consumers whose attention is demanded elsewhere are likely to disregard commercial messages. Consumers shopping for a special occasion (e.g., a wedding) may buy different products.

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ANALYSIS & INTERPRETATION


Consumer Decision Making Definitions. Consumer decision making comes about as an attempt to solve consumer problems. A problem refers to "a discrepancy between a desired state and an ideal state which is sufficient to arouse and activate a decision process." Thus, problems can be major (e.g., a consumer has been fired and is without a job) or minor (e.g., the consumer lacks an eraser necessary to take an exam the next day), and the broader and more ambiguous a problem is, the more potential solutions are generally available (see class slides for examples). Consumer Problem Recognition. Consumers often note problems by comparing their current, or actual, situation, explicitly or implicitly, to some desired situation. In terms of the "big picture," what is compared may be the totality of ones lifestyle. Once a discrepancy is found, a determination is found as to whether this is large enough to warrant action, in which case a search for solutions is initiated. Problems come in several different types. A problem may be an active one (e.g., you have a headache and would like as quick a solution as possible) or inactive-- you are not aware that your situation is a problem (e.g., a consumer is not aware that he or she could have more energy with a new vitamin). Consumer Outlet Selection Retail evolution and consumer choice. For many products, consumers frequently have numerous choices as to where they are going to actually obtain the product. Although we are used to thinking of buying automobiles only from dealerships, for example, it is today possible to buy them through brokers or fleet sales organizations that may both (1) offer a lower price and/or (2) provide the help of a neutral third party which does not have a vested interest in the sales of one make over the other.
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1-Different reason and its contribution to purchase the Parle product by consumers.

Specification Price Quality Packing Cant say Total

% 35 30 15 20 100

Age Group. 35-50 25-40 5-20 55-60

The consumer prefer the product from various reason as like 35% consumer prefer the product for its price, 30%for its quality, 15% for its packing but 20% consumer have not certain idea or view why they prefer the Parle product may be they prefer by availability, awareness, and other various reason.

Reason of Consumer Preference of Parle Product

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Reason of consumer preference of Britannia product

can't say 20% p rice 35% packing 15%

quality 30%

2-Market Share of Parle.

(100 CONSUMERS)
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Company Parle Britania HLL Other

% of Market share 45% 30% 15% 10%

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Parle

Britania

HLL

other

10% f 15% 30% 45%

In the various company of Biscuits the Parle have 45% market share and Britania and HLL have less market share in Neemrana as 30% and 15% and other biscuits company have 10% 0f market share in Neemrana

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3- Market share of different brand of Parle on the basis of 100 consumers DSR.

Parle-G

42

Krackjack

30

Monaco

24

Parle Orange,elaichi,mango

41

Kreams chocklate

24

Marie choice

13

Hide & Seek

46

Milk Shakti

10

Marie

16

Crunchi

12

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4- Rating of Distribution of product in Neemrana (100 consumers) Rating of Distribution Excellent Good Average Poor % 45 30 20 5

On the basis of retailer satisfaction I am also ranked the distribution of the product in Delhi the 45% retailer rank it Excellent 30% rank it Good 20% average and 5% rank its as s poor distribution.

Rating of Distribution

20%

5% 45% 30%
excelent good Average poor

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5- 100 Consumers awareness about product of Parle by different sources.

Sources TV Add Radio Add Banner and holding Retail shopkeepers Distributor Other

% Of contribution 58 6 12 8 4 12

Some other factors as like awareness of product in also consider in total sales of the product. The consumer aware the Parles product by different sources as like 58% consumer by TV Add, 6% by Radio Add, 12% by Banner and holding 4% by distributes and 12% aware about product by other sources.

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Consumer aware product by Diffrent source

4% 8% 12%

12%
TV Add Redio Add Banner and holding retail shopkeper distributer other

58%

6%

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6- 100 consumers awareness about product of parle. % of Products Parle-G Hide & Shake Monaco Krackjack Kreams chocklate Marie Choice marie Orange cream Milk Shakti Fun Center Awareness 98 79 71 82 46 59 65 73 74 35

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7-segmentation of 100 consumers on the base of age group and its contribution in total sales.

Age Group 0-15 15-30 30-45 Above 45 Percentage 60 15 13 12

The product of Parle as like Prefer by the children with the age group 0-15 approximate 60% and other age group as like 15-30 age group consume 15%, 3045 consume 13% and above 45 consume 12% product of the total sale of Parle.

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consumer of the product of diffrent age group

12% 13% 0-15 15-30 30-45 15% 60% above 45

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8-Satisffaction Level of 100 Consumer from Parle Products.

MAXIMUM AVERAGE MINIMUM

56% 33% 11%

Level consumer satisfaction of the Parle product is differ to consumer-to-consumer 35% consumer satisfy maximum level and 33% with average level from the product. 11% consumers satisfy minimum level from the product.

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SATISFACTION LEVEL

MINIMUM 11% MAXIMUM AVERAGE 33% MAXIMUM 56% AVERAGE MINIMUM

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CONCLUSION
During summer training, I went in market, meet to the retail shop, place order for him, and maintain the order in DSR (Daily Sales Report). On the basis of DSR and observation of the consumer, response I am analyzed the market situation of the Parles industries Ltd. and try to gather the knowledge of market share, flow of product in the market and behavior of the consumer about the product of Parle. My project is completed On the basis of my DSR and observations of the consumer response on the retail shop my fact and finding is given belowThe consumer prefer the product from various reason as like 35% consumer prefer the product for its price, 30%for its quality, 15% for its packing but 20% consumer have not certain idea or view why they prefer the Parle product may be they prefer by availability, awareness, and other various reason. I n the various company of Biscuits the Parle have 55% market share and Britania and ITC have less market share in Delhi as 30% and 15% and other biscuits company have 10% 0f market share in Delhi .

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RECOMMENDATION AND SUGGESTIONS


On the basis of my summer training report, and the survey I am suggest to the company to increase the sales volume by following way: 1 Company should increase the quality of the product in the present time consumer want different flavor with high Quality. To face the competition form other company and increase the market share the company should improve the quality of different product and increase sales. Print media and television are the major source of awareness, so these Medias cancan be concentrated more for efficient results. The ages groups 30-45 and above are not interested to consume the biscuits, so these potential groups can concentrate.

4 The retailer is complain about the profit margin because it is less and not interested to sale it so some discount should be given to retailer to motivate them to the increase profit margin and help in increase the sales.

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APPENDIX
The effectiveness of project and consumer behavior is measured in keeping in mind the constraints and limitation given below: 1.The present study was confined to Delhi city and its adjoining areas. The findings of this study may not applicable to other areas. 2.The limitation and biasness of sampling techniques used in this study may influence the findings of this study. 3.Due to limitation of time and resources, all the possible factors influencing the report could not be considered.

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QUESTIONNAIRE
PARLE BISCUITS Date: _______________ Type of outlet: A/B/C Question pertaining to retailer profile: Name of the shop: _____________ Contact Person: ___________ Address: ______________________ Tel. No.: __________________ City: ______________________

Question pertaining to supply of biscuits:

1. Are PARLE biscuits available in your shop?

YES

] NO

2.

If YES, Which brands are available?

Parle-G Krackjack Monaco Chocolate Cream Orange Cream

Elaichi Cream Crunchi Hide & Seek Kreams chocklate Kesar Bite

Milk Shakti K.C.Butter Marie Choice Matfair Cookies Galaxy Cookies

Marie C. Cracker Cashew Fun Center Coconut Crunch

Glucose-V

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3.

If No, What is the reason for non-availability of PARLE? [ [ ] No regular visit [ ] Replacement Problem

] Problem with Distributor

4. If No, Reason for non-availability of Milk Shakti?

[ 5.

] Problem with supply [ ] People dont like it

What is the Source of procurement? [ [ ] Distributor ] Direct [ ] Whole Saler

6.

Which other Biscuits brands are available? (a) _________________ (c) _________________ (b) ___________________ (d) ___________________

7.

Which Brands are mostly selling? [ [ ] Parle ] Priyagold [ ] Britania [ ] Other

8.

What extra quality our competitors have?

9.

What are the average monthly sales of PARLE? [ ] Below 1000


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] 1000 to 3000

] 3000 to 5000

] Above 5000 supply?

10. Would you like to give any suggestion regarding proper

____________________________________________________________ Super Stockist Name: Signature of Retailer

Thanks a lot for spending your precious time on our queries. Your opinion means a lot to us. We look forward to be serving you soon.

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BIBILIOGRAPHY
BOOKSMarketing management- Philip Kotlar Element of marketing management-Pradeep Kumar Research methodology- C.R. kothari Public Relation- Dewakar Sharma

WEBSITE
www.msnsearch.com www.advancesales.com www.consumerphycologist.com www.google.com

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