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					CHAPTER 1




            Page 1 of 103
1.1 Introduction

          Bakery industry in India is the largest of the food industries with an annual
turnover of about Rs. 3000 crores. India is the second largest producer of biscuits after
USA. The biscuit industry in India comprises organized and un-organised sectors. Bread
and Biscuits form the major baked foods accounting for over 80% of total bakery
products produced in the country. The quantities of bread and biscuits produced are more
or less the same. However per unit cost of biscuit is more than bread. Bakery products
once considered as sick man’s diet, have now become an essential food items of the vast
majority of population. Though bakery industry in India has been in existence since long,
real fillip came only in the later part of 20th century. The contributing factors were
urbanization, resulting in increased demand for ready to eat products at reasonable costs
etc.


MA R K E T POTENTIAL


          “The bakery units are unevenly spread among states. These are mainly
concentrated in the states of Maharashtra, West Bengal, Andhra Pradesh, Karnataka and
Uttar Pradesh. Industrially advanced states like Maharashtra and West Bengal have very
large number of bakery units. The per capita consumption is very high in industrialized
States like Maharashtra and West Bengal. The biscuits are becoming quite popular in
rural areas as well. Nearly 55% of the biscuits are consumed by rural sector. The higher
consumption of biscuits in rural area could be attributed to its position as a snack, longer
shelf life and better taste which is like by different cross sections 251 4 6 of population.
There is no marketing problem as every shop is a market for wafer biscuits. Bakery
products still remain the cheapest of the processed ready to eat products in the country.
The production of Bakery products has increased from 5.19 lakh tonnes in 1975 to 18.95
lakh tonnes in 1990 recording four– fold increase in 15 years. Among the bakery
products, biscuits occupy an important place as they contribute over 33% of total




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products processed. Over 79% of the biscuits are produced by small scale sector
consisting of both factory and non-factory units. The growth rate for bakery products is
estimated at an average o f 9.8 % per annum. The demand for bakery products will
continue to increase in future. The estimated growth rate of 9.8% is on the lower side
considering the present potentiality of bakery products, particularly in rural areas, where
about 70% of the       population lives. Encouraging trends in consumption of bakery
products by population of lower and middle income groups indicate vast scope for
consideration of nutritional enrichment of bakery products.”[1]


          Marketing is an integrated communications based process through which the
individuals and communities discover the existing and newly identified needs and wants
may be satisfied by the products and the services of the others. Marketing is defined by
the American Marketing Association as the activity, set of institutions and the processes
for creating, communicating, delivering and exchanging the offers that have the value for
the customers, clients, partners and the society at large.


          Marketing is influenced by many of the social sciences, particularly
Psychological, Sociology and Economics, Anthropology and Neuroscience are also small
but growing influences. Market research underpins those activities. Through advertising
it is also related to many of the creative arts. So it is clear that marketing concepts in the
present scenario is of consumer oriented. Marketing efforts are mainly for attracting the
consumers and satisfying their expectations.


          The pre launch study is very important these days. All kind of manufactures are
nowadays ready to make changes to their products based on the customer’s preference.
For finding out the exact taste of customers the company directly or indirectly do some
kind of prelaunch study in the targeted population. The pre launch study is not a single
use study, the information that we gather from the study can be used for many purposes.
From a single study itself we will have enough information from customers regarding
their views about the product and their expectations about that product and such a lot of
things.


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    The main competitor to modern industry in its core sector in Kerala is from the Elite
group based on Thrissur.



1.2 Scope of the study
    The scope of the study is to find out the chance of a new brand in the present rice
flour market. By conducting a study like this the company can make use of the
information that is gathered. If the study says there is absolutely no scope for any further
products in the market, company can reconsider its decision about the new product and
invest that amount of money in some other side of the business and make a safer bet. If
company make some decisions to launch a new product in the market without having a
market pilot study company may end up in a total collapse. So the scope of such studies
is very important.


    On the basis of the conclusion of the present study appropriate changes can be made
by the company in the product design or marketing strategies. Thus the product can be
made more appealing to the customers taste and preference.



1.3 Need and importance
    Company can easily make use of the information from the study, for offering a
       better consumer appealing product.
    This information can make use of to redesign the present market strategies to
       boost up the market share of the existing products.
    This study results will make company to rethink its pricing strategies of the new
       product
    This will gave a chance to company where to focus beyond advertising and other
       promotional activities.




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1.4 Objectives of the Study


    To find out the scope for an innovative product like packed rice flour in Kerala.



Secondary objective
    To find out the usual breakfast material of the people.
    For finding out the intensity of awareness of the brand “MODERN” among the
     people.
    To find out the fair price of upcoming rice flour packet by “MODERN”.
    To find out the major competitor in the industry at present.



1.5 Research Methodology


Statement of the problem


        The present project is entitled “A brief study of marketing research process with
    special reference to prelaunch of rice flour by modern food Ltd” for ascertaining the
    market of new packed rice flour by the brand name “Modern” . The company is keen to
    know whether there is any scope for a new product (rice flour) in the present market
    situations. So to find out the scope for this new product on behalf of the company I am
    doing this study “A brief study of marketing research process with special reference to
    prelaunch of rice flour by modern food Ltd”.



    Source of data
    Primary data
       Structured questionnaire




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 Secondary data
       Various published data about company
       Websites
       Books
       Journals



 Pilot study
           To test the questionnaire a pilot study was conducted among 10 households
 and necessary alterations are made.
           “A pilot, or feasibility study, is a small experiment designed to test logistics
and gather information prior to a larger study, in order to improve the latter’s quality and
efficiency. A pilot study can reveal deficiencies in the design of a proposed experiment
or procedure and these can then be addressed before time and resources are expended on
large scale studies. Animal experiments are not usually carried out in isolation, but are
part of a programme of research. A good research strategy requires careful planning and
a pilot study will often be a part of this strategy.
           A pilot study is normally small in comparison with the main experiment and
therefore can provide only limited information on the sources and magnitude of variation
of response measures. It is unlikely, for example, that a pilot study alone can provide
adequate data on variability for a power analysis to estimate the number of animals
to include in a well designed experiment. A systematic review of the literature or even a
single publication is a more appropriate source of information on variability. The pilot
study may, however, provide vital information on the severity of proposed procedures or
treatments.


Logistical issues which may be revealed by a pilot study
           A pilot study may address a number of logistical issues. As part of the
research strategy the following factors can be resolved prior to the main study:
• Check that the instructions given to investigators (e.g. randomisation procedures) are
comprehensible;


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• Check that investigators and technicians are sufficiently skilled in the procedures;
• Check the correct operation of equipment;
• Check that the experimental animal can perform a task (physical or cognitive)
• Check the reliability and validity of results
• Detect a floor or ceiling effect (e.g. if a task is too difficult or too easy there will be
skewed results)
• Assess whether the level of intervention is appropriate (e.g. the dose of a drug);
• Identify adverse effects (pain, suffering, distress or lasting harm) caused by the
procedure, and the effectiveness of actions to reduce them (e.g. analgesia dose rate and
schedule);
• Define early humane endpoints” [2]



         According to Professor Theodore Levitt of the Harvard Business School, the
study of Consumer Behaviour is one of the most important in business education,
because the purpose of a business is to create and keep customers. Customers are
created and maintained through marketing strategies. And the quality of marketing
strategies depends on knowing, serving, and influencing consumers. In other words, the
success of a business is to achieve organisational objectives, which can be done by the
above two methods. This suggests that the knowledge & information about consumers
is critical for developing successful marketing strategies because it challenges the
marketers to think about and analyse the relationship between the consumers &
marketers, and the consumer behaviour & the marketing strategy.


         Consumer behaviour is interdisciplinary; that is, it is based on concepts and
theories about people that have been developed by scientists, philosophers &
researchers in such diverse disciplines as psychology, sociology, social psychology,
cultural anthropology, and economics. The main objective of the study of consumer
behaviour is to provide marketers with the knowledge and skills that are necessary to
carry out detailed consumer analyses which could be used for understanding markets
and developing marketing strategies. Thus, consumer behaviour researchers with their



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skills for the naturalistic settings of the market are trying to make a major contribution
to our understanding of human thinking in general.


         The study of consumer behaviour helps management understand consumers’
needs so as to recognise the potential for the trend of development of change in
consumer requirements and new technology. And also to articulate the new thing in
terms of the consumers’ needs so that it will be accepted in the market well.


         The following are a few examples of the benefits of the study of consumer
behaviour derived by the different categories of people:


1. A marketing manager would like to know how consumer behaviour will help him to
design better marketing plans to get those plans accepted within the company.


2. In a non-profit service organisation, such as a hospital, an individual in the
marketing department would like to know the patients’ needs and how best to serve
those needs.


3. Universities & Colleges now recognise that they need to know about consumer
behaviour to aid in recruiting students. “Marketing Admissions” has become an
accepted term to mean marketing to potential students.


         Consumer behaviour has become an integral part of strategic market planning.
It is also the basis of the approach to the concept of Holistic Marketing. The belief that
ethics and social responsibility should also be integral components of every marketing
decision is embodied in a revised marketing concept – the societal marketing concept –
which calls on marketers to fulfil the needs of their target markets in ways that improve
society as a whole.




                                                                             Page 8 of 103
 Introduction to Consumer Behaviour
            The study of Consumer Behaviour is quite complex, because of
 many variables involved and their tendency to interact with & influence
 each other. These variables are divided into three major sections that
 have been identified as the most important general influences on
 Consumer Behaviour. Imagine three concentric circles, one at the outer
 most, one in the middle & one at the inner most, and they represent
 the following:


            External Environmental Variables Influencing Behaviour: These
 are the factors controlled by external environments like the following
 form the basis of external influences over the mind of a customer (outer
 circle):


 1. Culture, and Sub-culture,
 2. Social Class, and Social Group,
 3. Family, and Inter-Personal Influences,
 4. Other Influences (which are not categorised by any of the above six,
     like geographical, political, economical, religious environment, etc.).




Sample design
Sample procedure
            Sampling is a process of selecting a subset of randomized number of members
of the population of a study and collecting data about their attributes. The limited
numbers of the population selected for sampling are called sampling units. Based on the
data of the sample, the analyst will draw inference about the population.




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The advantages of sampling
      Less time taken to collect data
      Less cost for data collection
      It is the only option while collecting data using a destructive testing
      Physical impossibility of complete enumeration necessitates sampling
      More accuracy of data collected due to its limited size.
Random sampling techniques
           It is also known as the simple random sampling. Let N be the number of units
of the population; n be the number units of the sample (n<N). There are two different
ways of performing simple random sampling, viz., simple random sampling with
replacement of units and simple random sampling without replacement of units.



Types of random sampling

 A simple random sample is selected so that all samples of the same size have an equal
 chance of being selected from the population.
  A self-weighting sample, also known as an EPSEM (Equal Probability of Selection
 Method) sample, is one in which every individual, or object, in the population of
 interest has an equal opportunity of being selected for the sample. Simple random
 samples are self-weighting.

  Stratified sampling involves selecting independent samples from a number of
 subpopulations, group or strata within the population. Great gains in efficiency are
 sometimes possible from judicious stratification.

  Cluster sampling involves selecting the sample units in groups. For example, a sample
 of telephone calls may be collected by first taking a collection of telephone lines and
 collecting all the calls on the sampled lines. The analysis of cluster samples must take
 into account the intra-cluster correlation which reflects the fact that units in the same
 cluster are likely to be more similar than two units picked at random.




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Method of producing random sampling

   Random number table
   Mathematical algorithms for pseudo-random number generators
   Physical randomization devices such as coins, playing cards or sophisticated devices
    such as ERNIE


Sample size
           The total sample size is 100 respondents. In that 100 respondent 40 are males
and the remaining 60 are females.

Research instrument

           The research instrument used in this survey is questionnaire. The
questionnaire      contains    close-ended     questions,     multiple-choice   questions   and
dichotomous questions.

Tools used for analysis
     Chi square test
        “Chi-square test" is often shorthand for Pearson's chi-square test.


“A chi-square test (also chi squared test or χ2 test) is any statistical hypothesis test in
which the sampling distribution of the test statistic is a chi-square distribution when
the null hypothesis is true, or any in which this is asymptotically true, meaning that the
sampling distribution (if the null hypothesis is true) can be made to approximate a chi-
square distribution as closely as desired by making the sample size large enough.

Some examples of chi-squared tests where the chi-square distribution is only
approximately valid:

   Pearson's chi-square test, also known as the chi-square goodness-of-fit test or chi-
square test for independence. When mentioned without any modifiers or without other
precluding context, this test is usually understood (for an exact test used in place of χ2,
see Fisher's exact test).”[3]




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• “The chi-square test is a “goodness of fit” test: it answers the question of how well do
 experimental data fit expectations.
• First determine the number of each phenotype that have been observed and how many
 would be expected given basic genetic theory


          (obs  exp) 2
   2  
              exp
The “Χ” is the Greek letter chi; the “∑” is a sigma; it means to sum the following terms
for all phenotypes.


“obs” is the number of individuals of the given phenotype observed.
“exp” is the number of that phenotype expected from the null hypothesis
• Note that you must use the number of individuals, the counts, and NOT proportions,
 ratios, or frequencies.


• A critical factor in using the chi-square test is the “degrees of freedom”, which is
 essentially the number of independent random variables involved”[4]


Chi-Square Test Requirements
   1. Quantitative data.

   2. One or more categories.

   3. Independent observations.

   4. Adequate sample size (at least 10).

   5. Simple random sample.

   6. Data in frequency form.

   7. All observations must be used.


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PERIOD OF STUDY
   The study was conducted for a period of 45 days ranging from 11-April-2011 to
    25-may-2011. Data caver a period 5 years from 2006-April to 2011- April.




1.6 Limitations of the study
   Since the study was limited to 45 days only an in depth study was not attempted
   Since the subject matter of the study is a likely future product, while answering
      questions respondents may mix their imaginations also.


1.7 Layout of the Report


Chapter1
Chapter 1 is the introductory chapter. Topic of the project, scope, objectives of the
study, research methodology, limitations of the study are included in this.
Chapter 2
Chapter II will be devoted to present Literature Review, which gives idea regarding the
theoretical aspects of the research.

Chapter 3

Chapter III is earmarked for Industry and Company Profile.

Chapter 4

The entire chapter IV is reserved for the Data Analysis and Interpretation. It also
contains statistical analysis.

Chapter 5

Chapter V is the concluding chapter. Here an attempt will be made to summarize and
present the major Findings and Suggestions of the study.



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Reference
[1]. http://dcmsme.gov.in/publications/pmryprof/food/ch25.pdf
[2]- http://www.nc3rs.org.uk/downloaddoc.asp?id=400
[3]- http://en.wikipedia.org/wiki/Chi-square_test
[4]- www.bios.niu.edu/johns/genetics/chi_square.ppt




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CHAPTER 2




            Page 15 of 103
2.1Review of literature
         Agriculture was the key implement in the rise of sedentary human civilization,
whereby farming of domesticated species created food surpluses that nurtured the
development of civilization. The study of agriculture is known as agricultural science.
Agriculture is also observed in certain species of ant and termite, but generally
speaking refers to human activities.


         The history of agriculture dates back thousands of years, and its development
has been driven and defined by greatly different climates, cultures, and technologies.
However, all farming generally relies on techniques to expand and maintain the lands
suitable for raising domesticated species. For plants, this usually requires some form
of irrigation, although there are methods of dryland farming; pastoral herding
on rangeland is still the most common means of raising livestock. In the developed
world, industrial     agriculture based     on    large-scale monoculture has   become    the
dominant system of modern farming, although there is growing support for sustainable
agriculture.


         The        major    agricultural        products   can    be    broadly     grouped
into foods, fibres, fuels and raw materials. In the 21st century, plants have been used to
grow bio fuels,biopharmaceutical, bioplastics and pharmaceuticals. Specific foods
include cereals, vegetables, fruits and meat. Fibres include cotton, wool, hemp, silk and
flax. Raw materials include lumber and bamboo. Other useful materials are produced
by plants, such as resins. Bio fuel include methane from biomass, ethanol and biodiesel.
Cut flowers, nursery plants, tropical fish and birds for the pet trade are some of the
ornamental products.


         In 2007, one of the world’s workers was employed in agriculture.
The services sector has overtaken agriculture as the economic sector employing the
most people worldwide. Despite the size of its workforce, agricultural production
accounts for less than five percent of the gross world product (an aggregate of all gross
domestic products).[1]



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         Agriculture has played a key role in the development of human civilization.
Until the Industrial Revolution, the vast majority of the human population laboured in
agriculture. The type of agriculture they developed was typically subsistence
agriculture in which farmers raised most of their crops for consumption on farm, and
there was only a small portion left over for the payment of taxes, dues, or trade.
In subsistence agriculture cropping decisions are made with an eye to what the family
needs for food, and to make clothing, and not the world marketplace. Development of
agricultural techniques has steadily increased agricultural productivity, and the
widespread diffusion of these techniques during a time period is often called
an agricultural revolution. A remarkable shift in agricultural practices has occurred over
the past century in response to new technologies, and the development of world
markets. This also led to technological improvements in agricultural techniques, such as
the Haber-Bosch method for synthesizing ammonium nitrate which made the traditional
practice of recycling nutrients with crop rotation and animal manure less necessary.

         Food processing is the set of methods and techniques used to transform
raw ingredients into food or     to     transform      food      into     other     forms
for consumption by humans or animals either in the home or by the food processing
industry. Food processing typically takes clean, harvested crops or butchered animal
products and uses these to produce attractive, marketable and often long shelf-life food
products. Similar processes are used to produce animal feed.

         Extreme examples of food processing include the delicate preparation of
deadly fugu fish or preparing space food for consumption under zero gravity.

History of food processing
         Food processing dates back to the prehistoric ages when crude processing
incorporated slaughtering, fermenting, sun drying, preserving with salt, and various
types of cooking (such as roasting, smoking, steaming, and oven baking). Salt-
preservation was especially common for foods that constituted warrior and sailors'
diets, up until the introduction of canning methods. This holds true except for lettuce.
Evidence for the existence of these methods can be found in the writings of the




                                                                            Page 17 of 103
ancient Greek , Chaldean, Egyptian and Roman civilizations as well as archaeological
evidence from Europe, North and South America and Asia. These tried and tested
processing techniques remained essentially the same until the advent of the industrial
revolution. Examples of ready-meals also exist from preindustrial revolution times such
as the Cornish pasty and Haggis. During ancient times and today these are considered
processing foods.

         Modern food processing technology in the 19th and 20th century was largely
developed to serve military needs. In 1809 Nicolas Appart invented a vacuum bottling
technique that would supply food for French troops, and this contributed to the
development of tinning and then canning by Peter Durand in 1810. Although initially
expensive and somewhat hazardous due to the lead used in cans, canned goods would
later become a staple around the world. Pasteurization, discovered by Louis Pasteur in
1862, was a significant advance in ensuring the micro-biological safety of food.

         In the 20th century, World War II, the space race and the rising consumer
society in developed countries (including the United States) contributed to the growth
of food processing with such advances as spray drying, juice concentrates, freeze
drying and the introduction of artificial sweeteners, colouring agents, and preservatives
such as sodium benzoate. In the late 20th century products such as dried instant soups,
reconstituted fruits and juices, and self cooking meals such as MRE food ration were
developed.

         In western Europe and North America, the second half of the 20th century
witnessed a rise in the pursuit of convenience. Food processing companies marketed
their products especially towards middle-class working wives and mothers. Frozen
foods (often credited to Clarence Birdseye) found their success in sales of juice
concentrates and "TV dinners". Processors utilised the perceived value of time to
appeal to the postwar population, and this same appeal contributes to the success
of convenience foods today.




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Benefits
           Benefits of food processing include toxin removal, preservation, easing
marketing and distribution tasks, and increasing food consistency. In addition, it
increases seasonal availability of many foods, enables transportation of delicate
perishable foods across long distances and makes many kinds of foods safe to eat by
de-activating spoilage and pathogenic micro-organisms. Modern supermarkets would
not be feasible without modern food processing techniques, long voyages would not be
possible and military campaigns would be significantly more difficult and costly to
execute.

           Processed foods are usually less susceptible to early spoilage than fresh foods
and are better suited for long distance transportation from the source to the consumer.
When they were first introduced, some processed foods helped to alleviate food
shortages and improved the overall nutrition of populations as it made many new foods
available to the masses.

           Processing can also reduce the incidence of food borne disease. Fresh
materials, such as fresh produce and raw meats, are more likely to harbour pathogenic
micro-organisms (e.g. Salmonella) capable of causing serious illnesses.

           The extremely varied modern diet is only truly possible on a wide scale
because of food processing. Transportation of more exotic foods, as well as the
elimination of much hard labour gives the modern eater easy access to a wide variety of
food unimaginable to their ancestors.

The act of processing can often improve the taste of food significantly.
           Mass production of food is much cheaper overall than individual production of
meals from raw ingredients. Therefore, a large profit potential exists for the
manufacturers and suppliers of processed food products. Individuals may see a benefit
in convenience, but rarely see any direct financial cost benefit in using processed food
as compared to home preparation.




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         Processed food freed people from the large amount of time involved in
preparing and cooking "natural" unprocessed foods. The increase in free time allows
people much more choice in life style than previously allowed. In many families the
adults are working away from home and therefore there is little time for the preparation
of food based on fresh ingredients. The food industry offers products that fulfil many
different needs: From peeled potatoes that only have to be boiled at home to fully
prepare ready meals that can be heated up in the microwave oven within a few minutes.

         Modern food processing also improves the quality of life for people with
allergies, diabetics, and other people who cannot consume some common food
elements. Food processing can also add extra nutrients such as vitamins.

Drawbacks

         Any processing of food can have slight effects on its nutritional
density. Vitamin C, for example, is destroyed by heat and therefore canned fruits have a
lower content of vitamin C than fresh ones. The USDA conducted a study in 2004,
creating a nutrient retention table for several foods. A cursory glance of the table
indicates that, in the majority of foods, processing reduces nutrients by a minimal
amount. On average any given nutrient may be reduced by as little as 5%-20%, which
could be offset easily by the use of a Multivitamin.

         Another safety concern in food processing is additives. The health risks of any
additives will vary greatly from person to person, in example sugar as an additive
would be detrimental to those with diabetes. In the European Union, only food
additives (e.g., sweeteners, preservatives, stabilizers) that have been approved as safe
for human consumption by the European Food Safety Authority(EFSA) are allowed, at
specified levels, for use in food products. Approved additives receive an E number (E
for Europe), which at the same time simplifies communication about food additives in
the list of ingredients across the different languages of the EU.




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Trends in modern food processing
Cost reduction

     Profit Incentive drives most of the factors behind any industry; the food industry
not least of all. Health concerns are generally subservient to profit potential, leading the
food processing industry to often ignore major health concerns raised by the use of
industrially-produced ingredients (partially-hydrogenated vegetable oils, for example, a
well-known and well-researched cause of heart disease, which is still commonly used in
processed food to increase profit margin.). Consumer pressure has led to a reduction in
the use of industrially-produced ingredients in processed food, but the (often slight)
potential for increased profits has barred widespread acceptance by the industry of
recognized health problems caused by over-consumption of processed foods.
     Often farmers take most of the burden in cost reduction because they're usually
submitted to a monophony by food processing industries.

Health

   Reduction of fat content in final product e.g. by using baking instead of deep-frying in
    the production of potato chips, another processed food
   Maintaining the natural taste of the product e.g. by using less artificial sweetener than
    they used before.

Hygiene
           The rigorous application of industry and government endorsed standards to
minimise possible risk and hazards. The international standard adopted is HACCP.

Efficiency

   Rising energy costs lead to increasing usage of energy-saving technologies,e.g.
frequency converters on electrical drives, heat insulation of factory buildings and
heated vessels, energy recovery systems, keeping a single fish frozen all the way from
China to Switzerland.




                                                                               Page 21 of 103
   Factory automation systems (often Distributed control systems) reduce personnel
    costs and may lead to more stable production results.


Present Status and Future Prospects of Indian Food Processing Industries
           The Ministry of Food Processing Industries (MFPI) was set up in July, 1988 to
give an impetus to development of food processing sector in the country. Subsequently
vide Notification No. Doc. CD-442/99 dated 15.10.99 this Ministry was made a
Department and brought under the Ministry of Agriculture. It was again notified as the
Ministry of Food Processing Industries vide Cabinet Secretariat’s Note No.
1/22/1/2001-Cab.(1) dated 06.09.2001.


NATIONAL INSTITUTE OF FOOD TECHNOLOGY,
ENTREPRENEURSHIP & MANAGEMENT (NIFTEM):


           It has been decided to set up National Institute of Food Technology,
Entrepreneurship & Management (NIFTEM) at Kundli, Haryana as an International
Centre of excellence which will work synergistically with the industry and similar
institutions within India and outside.
           “India with arable land of 184 million hectares, produces annually 90 million
tonnes of milk (highest in the world), 150 million tonnes of fruits & vegetables (second
largest), 485 million livestock (largest), 204 million tonnes food grain (third largest),
6.3 million tonnes fish (3rdlargest), 489 million Poultry and 45,200 million eggs.”[2]
           India’s agricultural production base is quite strong but at the same time
wastage of agricultural produce is massive. Processing level is very low i.e. around 2%
for fruits &vegetables, 26% for marine, 6% for poultry and 20% for buffalo meat, as
against 60-70% in developed countries. The share of India’s export of processed food
in global trade is only 1.5%.
           Average Growth rate of FPI during the last five years (up to 2003-04) has been
7.15%


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Tax relief for speedy growth of FPI
Budget of 2004-05:
(i)”In the budget of 2004-05, the Government allowed under Income Tax Act, a
deduction of 100% of profit for five years and 25% of profits for the next five years in
case of new agro processing industries set up to process, preserve and package fruits
and vegetables.
(ii) Excise duty of 16% on dairy machinery has been reduced to zero for promotion of
dairy processing industries.
(iii) Excise duty on meat, poultry and fish has been reduced from 16% to 8%.
(iv) Excise duty on food grade hexane used in edible oil industry has been reduced from
32% to 16%.
(v) For promoting value addition in palm oil sector, customs duties on refined palm oil
are fixed at 75% whereas the same for crude palm oil remains at 65%.


Budget of 2005-06:
(i) Excise duty of Rs. 1.00 per kg. on refined edible oil and Rs. 1.25 per kg. On
vanaspati abolished.
(ii) Customs duty on refrigerated vans reduced from 20% to 10%


Budget of 2006-07:
1. Food processing identified as industry with employment potential
2. Food processing to be a priority sector for bank credit; NABARD to create a
refinancing window with a corpus of Rs. 1,000 crore, especially for agro-processing
infrastructure and market development.
3. National Institute of Food Technology Entrepreneurship and Management to be set
up; Paddy Processing Research Centre, Thanjavur to be upgraded into a national–
level institute.
4. Customs duty on packaging machines to be reduced from 15 per cent to 5 per cent.
5. Customs duty on Vanaspati increased to 80%



                                                                          Page 23 of 103
6. Condensed milk, ice cream, preparations of meat, fish and poultry, pectins, pasta and
yeast to be fully exempt from excise duty.
7. Excise duty on ready-to-eat packaged foods and instant food mixes, like dosa and
idli mixes, to be reduced from 16 per cent to 8 percent.”[3]
         The food processing sector is highly fragmented industry, it widely comprises
of the following sub-segments: fruits and vegetables, milk and milk products, beer and
alcoholic beverages, meat and poultry, marine products, grain processing, packaged or
convenience food and packaged drinks. A huge number of entrepreneurs in this
industry are small in terms of their production and operations, and are largely
concentrated in the unorganized segment. This segment accounts for more than 70% of
the output in terms of volume and 50% in terms of value. Though the organized sector
seems comparatively small, it is growing at a much faster pace.




                                                                           Page 24 of 103
Source: D&B Research




                       Page 25 of 103
Structure of the Indian Food Processing Industry




                                                   Page 26 of 103
 Food Processing Units in Organized Sector (numbers)




 Source: Ministry of Food Processing Industries, Annual Report 2003-04


Grain Processing

        “Processing of   grain includes milling of wheat, rice and pulses. In 1999-00,
there were more than 91,000 rice hullers and 2,60,000 small flourmills which were
engaged in primary milling. There are 43,000 modernized rice mills and huller-cum-
shellers. Around 820 large flourmills in the country convert about 10.5 mn tonnes of
wheat into wheat products. Also there are 10,000 pulse mills milling about 75% of
pulse production of 14 mn tonnes in the country.




                                                                           Page 27 of 103
          Primary milling of grains is the considered to be the important activity in the
grain-processing segment of the industry. However, primary milling adds little to shelf
life, wastage control and value addition. Around 65% of rice production is milled in
modern rice mills. However, the sheller-cum-huller mills operating give low recovery.
Wheat is processed for flour, refined wheat flour, semolina and grits. Apart from the
820 large flourmills, there are over 3 lakh small units operating in this segment in the
unorganised sector. Dal milling is the third largest in the grain processing industry, and
has about 11,000 mechanised mills in the organised segment. Oilseed processing is
another major segment, an activity largely concentrated in the cottage industry.
According to estimates, there are approximately 2.5 lakh ghanis and kolus which are
animal operated oil expellers, 50,000 mechanical oil expellers, 15,500 oil mills, 725
solvent extraction plants, 300 oil refineries and over 175 hydrogenated vegetable oil
plants.
          Indian Basmati rice has gained international recognition, and is a premium
export product. Branded grains as well as grain processing is now gaining popularity
due to hygienic packaging”[4]



          “Advertisers use different types of appeals and demonstrations to attract and
retain customers, but the literature review shows very less work on evaluating the
differential impact of various types of appeals on consumers purchase decisions. The
study “Do all advertising appeals influence consumer purchase decisions: an
exploratory study” empirically tests the differential influence various advertising
appeals create on consumer purchase decision.


          The article titled “Do all advertising appeals influence consumer purchase
decisions: an exploratory study” by Sanjeev Verma presented as follows. The primary
objective of this research was to identify the influence of rational and emotional appeals
on consumer purchase decisions. The result obtained suggests that among all rational
appeals, appeals depicting refreshment affect consumer purchase decisions right from
the beginning till the end. Consumers are prone to pay more attention to



                                                                             Page 28 of 103
those ads which portray soft drinks as refreshing products. The consumers pay
minimum attention to other rational appeals like product attributes, logic and educative
information. The results obtained suggest that besides refreshment, information like
product attributes and educative information may also influence the consumers’
purchase and repurchase decisions. The advertisements containing rational appeal
depicting logic did not create any influence on any of the stages of consumer purchase
decision. Among emotional appeals, thrill, affection, pride and fear attracted the
consumer’s


           Attention towards the advertisements, but thrill and pride were the only major
influencers of consumer purchase decision.


             Not many advertisers in India routinely collect data on differential impact of
advertising appeals on consumer purchase decision. Our findings indicate that all
advertisement appeals are not equally attractive and the consumers get influenced by
only some of them. Once the advertising appeal having maximum likeability is
determined, the advertisers would know the relative importance of these appeals in
terms of perceptions of the targeted market. Managers can then generate strategies that
would be designed specifically for the target segments.Such differential strategies with
help in enhancing the attractiveness and performance of advertising stimuli.”[5]


Some of the key constraints identified by the food processing industry include:

   Poor infrastructure in terms of cold storage, warehousing, etc
   Inadequate quality control and testing infrastructure
   Inefficient supply chain and involvement of middlemen
   High transportation and inventory carrying cost
   Affordability, cultural and regional preference of fresh food
   High taxation
   High packaging cost




                                                                             Page 29 of 103
SWOT Analysis of Food–Processing Industry

Strengths

   Abundant availability of raw material
   Priority sector status for agro-processing given by the central Government
   Vast network of manufacturing facilities all over the country
   Vast domestic market


Weaknesses

   Low availability of adequate infrastructural facilities
   Lack of adequate quality control and testing methods as per international standards
   Inefficient supply chain due to a large number of intermediaries
   High requirement of working capital.
   Inadequately developed linkages between R&D labs and industry.
   Seasonality of raw material


Opportunities

   Large crop and material base offering a vast potential for agro processing activities
   Setting of SEZ/AEZ and food parks for providing added incentive to develop
    Greenfield projects
   Rising income levels and changing consumption patterns
   Favourable demographic profile and changing lifestyles
   Integration of development in contemporary technologies such as electronics, material
    science, bio-technology etc. offer vast scope for rapid improvement and progress
   Opening of global markets




                                                                              Page 30 of 103
Threats

   Affordability and cultural preferences of fresh food
   High inventory carrying cost
   High taxation
   High packaging cost


Reference
[1] http://en.wikipedia.org/wiki/Agriculture
[2] [3] - http://mofpi.nic.in/images/ar06-07.pdf
[4] http://mofpi.nic.in/ContentPage.aspx?CategoryId=122
[5]-global business review; volume 10, Number1, janury-june 2009 Do All Advertising
Appeals Influence Consumer Purchase Decision: An Exploratory Study “Sanjeev
Verma”
p33
Ibid pp39-40




                                                                     Page 31 of 103
CHAPTER 3




            Page 32 of 103
3.1Industry profile

         The food processing industry includes fruits and vegetable processing, fish
processing, milk processing, meat and poultry processing, packaging/ convenience
food, alcoholic beverages and soft drinks and grains processing etc. The market of food
processing industry is one that is yet to be trapped properly. This industry has big
potential from the exports and is one of the industries that are expected ti fetch huge
foreign exchange.

         The food processing industry sector in India is one of the terms in production,
consumption, and exports and growth prospect. India produces about 200 million tones
of different food grains every year. The country is self-sufficient in the grain production
and is the second largest rice producer in the world, with about 20% share. As a result
of the several policy initiates undertaken since liberalization in August 1991, the
industry has witnessed fast growth in most of the segments. As per a recent study on the
food processing sector, the turnover of the total food market is approximately Rs
250000 crores out of which value added food products comprise of Rs 80000 crores.

         Packages food products have been slow in penetrating the large potential
presented by India’s 250 million strong middle classes. Of the total production of the
bread in the country, 60% is consumed by the rural population. According to the
industry data the bread market is estimated at Rs 2000 crores (inclusive of both
organized and unorganized sector). But due to the growing urbanization and the food
habits, the demand has been raising at a good pace and latent market potential waiting
to be exploited through developmental factors.

The story of the first bread making.

         “The first loaf of bread happened by chance, about 2600 B.C; an Egyptian
slave was making flour and the water cakes. He fell asleep and the fire went out before
the cakes were baked. Being in the warm environment overnight, the dough, and the
result was much more pleasant to eat than the thin, hard cake they were used to be”.




                                                                            Page 33 of 103
HISTORY OF BREAD MAKING

         Bread is one of the oldest prepared foods, dating back to the Neolithic era. The
first bread produced was probably cooked versions of a grain-paste, made from ground
cereal grains and water, and may have been developed by accidental cooking or
deliberate experimentation with water and grain flour.

         The history of bread is a long one, for bread is one of the oldest prepared
foods, dating back to the Neolithic era. The first bread produced was probably cooked
versions of a grain-paste, made from ground cereal grains and water, and may have
been developed by accidental cooking or deliberate experimentation with water and
grain flour. Descendants of this early bread are still commonly made from various
grains in many parts of the world, including Lavashs, Taboons, Sangaks, Mexican
Tortilla, Indian Chapatis, Roties and Naans, Scottish Oatcake, North American
Johnnycake, Middle eastern Pita and Etiopian Injera. Flat bread of these types also
formed a staple in the diet of many early civilizations with the Sumerians eating a type
of barley flat cake, and the 12th century BC Egyptians being able to purchase a flat
bread in ancient Greek offerings to the chthonic gods, known as psadista was made of
fine flour, oil and wine.

         The development of leavened bread can probably also be traced to prehistoric
times. Yeast spores occur everywhere, including the surface of cereal grains, so any
dough left to rest will become naturally leavened. Although leaving is likely of
prehistoric origin, the earliest archaeological evidence is from ancient Egypt. Scanning
electron microscopy has detected yeast cells in some ancient Egyptian loaves. However
ancient Egyptian bread was made from emmer wheat and has a dense crumb. In cases
where yeast cells are not visible, it is difficult, by examination, to determine whether
the bread was leavened. As a result, the extent to which bread was leavened in ancient
Egypt remains uncertain.

         There were multiple sources of leavening available for early bread. Airborne
yeasts could be harnessed by leaving uncooked dough exposed to air for some time
before cooking. Pliny the Elder reported that the Gauls and lberians used the foam



                                                                             Page 34 of 103
skimmed from beer to produce “a lighter kind of bread than other people”. Parts of the
other ancient world that drank wine instead of beer used a paste composed of grape
must and flour that was allowed to begin fermenting, or wheat bean steeped in wine, as
a source of yeast. The most common source of leavening however was to retain a piece
of dough from te previous day to utilize as a form of sourdough starter.

         The idea of a free standing oven that could be pre-heated, with a door for
access, appears to have been a Greek one.

         Even in antiquity there were a wide variety of breads. In ancient times the
Greek bread was barley bread: Solon declared that wheaten bread might only be baked
for feast days. By the fifth century bread could be purchased in Athens from a bakers
shop, and in Rome, Greek bakers appeared in the second century BC, as Hellenized
Asia minor was added to Roman dominion as the province of Asia the foreign bakers of
bread were permitted to form a collegiums in the Deipnosophistae, the 3rd century BC
author Athenaeus describes some of the bread, cakes, cookies,and pastries available in
the classical world. Among the bread mentioned are griddle cakes, honey and oil bread,
mushroom shaped loaves covered in poppy seeds, and the military specialty of rolls
baked on a spit. The type and quality of flours used to produce bread could also vary as
noted by Diphilus when he declared “bread made of wheat, as compared with that made
of barley, is more nourishing , more digestible , and in every way superior”. In order of
merit , the bread made from refined (thoroughly sieved) flour comes first, after that
bread from ordinary wheat, and then the unbolted, made of flour that has not been
shifted. “The essentiality of bread in the diet is reflected in the name for the rest of the
meal, breads accompaniment ,whatever it might be was opson.

         In medieval Europe, bread served not only as a staple food but also as part of
the table service. In the slandered table setting of the day the trencher, a piece of stale
bread roughly 6 inches by 4 inches (15 cm by 10 cm),served as an absorbent plate. At
the completion of a meal the trencher could then be eaten, given to the poor, or fed to
the dogs. It was not until the fifteenth century that trenchers made of wood started to
replace the bread variety.




                                                                               Page 35 of 103
         The industrialization of bread baking was a formative step in the creation of
the modern world. Otto Frederick Rohwedder is considered to be the father of sliced
bread. In 1912 Rohwedder started work on inventing a machine that sliced bread, buy
bakeries were reluctant to use it since they were concerned the sliced bread would go
stale. It was not until 1928, when Rohwedder invented a machine that both sliced and
wrapped the bread, that sliced bread caught on. A bakery in Chillicothe, Missouri was
the first to use this machine to produce sliced bread.

         For generations, white bread was the preferred bread of the rich while the poor
ate dark( whole grain) bread. However, in most western societies, the connotations
reversed in the late 20th century, with whole grain bread becoming preferred as having
superior nutritional value while white bread become associated with lower-class
ignorance of nutrition.

         Another major advance happened in 1961 with the development of the
Chorlywood Bread Process which used the intense mechanical working of dough to
dramatically reduce the fermentation period and the time taken to produce a loaf. The
process, whose high-energy mixing allows for the use of inferior grain, is now widely
used around the world in large factories.

         More recently, and especially in smaller retail bakeries, chemical additives are
used that both speed up mixing time and reduced necessary fermentation time, so that a
batch of bread may be mixed, made up, risen and baked in less than 3 hours. Dough
that does not require fermentation because of chemical additive is called “no-time
bread” by commercial bakers. Common additive include reducing agents such as L-
cysteine or sodium meta-bi-sulfite, and oxidants such as potassium bromated or
ascorbic acid. Often these chemicals are added to dough in the form of a prepackaged
base, which also contains most or all of the dough’s non-flour ingredients. Using such
bases and sophisticated chemistry, it has been possible for commercial bakers to make
imitations of artisan and sourdough breads, traditionally made by semi-skilled labour
working in smaller shops. Recently domestic bread makers that automate the process of
making bread have become popular in the home.




                                                                           Page 36 of 103
         About 1000 B.C, man first started eating a crude form of flat bread; a baked
combination of the flour and water. Ancient Egypticians are believed to be the first to
have baked leavened (raised) bread. About 3000 B.C, they started fermenting flour and
the water mixture by using wild yeast, which was presented in the air. Since wheat is
the only grain with the sufficient glutten content to make a raised or leavened loaf of
the bread. Wheat quickly become favoured over other grain grown at the time such as
Oats, Millet, Barley etc. a new strain of the wheat was developed that allowed for the
refined white bread. This was the first truly “Modern Bread”




INGRADIENTS USED IN BREAD

         Bread is a staple food prepared by cooking dough of flour and water possibly
more ingredients. Doughs are usually baked, but in some cuisines breads are steamed,
fried, or baked in an unoiled skillet. It may be leavened or unleavened. Salt, fat and
leavening agents such as yeast and baking soda are common ingredients though bread
may contain other ingredients such as milk, egg, sugar, spice, fruit (such as raisins),
vegetables (such as onions) nuts (such as walnuts) or seeds (such as poppy seeds).
Bread is one of the oldest prepared food, dating back to the Neolithic era, and is
referred to colloquially as the “Staff of Life”. The development of leavened bread can
probably also be traced to prehistoric times.

         Fresh bread is prized for its taste, aroma, quality and texture. Retaining its
freshness is important to keep it appetizing. Bread that has stiffened or dried past its
prime is said to be stable. Modern bread is sometimes wrapped in paper or plastic film,
or stored in a container such as a bread box to reduce drying. Bread that is kept in
warm, moist environments is prone to the growth of mold. Bread kept at low
temperatures, in a refrigerator for example, will develop mold gwoth more slowly than
bread kept at room temperature, but will turn stale quickly due to retro gradation. The
soft, inner part of bread is known to bakers and other culinary professionals as the
crumb, which is not to be confused with small bits of bread that often fall off, called
crumbs. The outer hard portion of bread is called crust.



                                                                             Page 37 of 103
                Nutritional value in white bread


                        Bread ,white(typical)

                  Nutritional value per 100gm(3.5oz)

                      Energy 270 Kcal 1110 KJ




Carbohydrates                                          51gm

Dietary Fiber                                          2.4gm

Fat                                                    3 gm

Protein                                                8 gm

Thiamine (vit.B1) 0.5mg                                38%

Riboflavin (vit.B2) 0.3mg                              20%

Niacin (Vit.B3) 4mg                                    27%

Sodium 681mg                                           30%




                                                               Page 38 of 103
3.2 Company profile

AN INTRODUCTION TO HINDUSTAN UNILEVER

          Hindustan UniLever Limited(HUL) is India’s largest fast moving consumer
goods company, touching the lives of two out of three Indians with over 20 distinct
categories in Home & Personal care products and food &beverages. The company’s
turnover is Rs.20,239 crores( for the 15 month period – January 1,2008 to March 31,
2009).

          HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast
moving consumer goods with strong local roots in more than 100 countries across the
globe with annual sales of €40.5 billion in 2008. Unilever has about 52% shareholding
in HUL.

          Hindustan Unilever Limited (HUL) is India's largest fast moving consumer
goods company. The Anglo-Dutch companyUnilever owns a 52% majority stake.

          HUL was formed in 1933 as Lever Brothers India Limited and came into
being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers,
Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered
in Mumbai, India and has an employee strength of over 15,000 employees and
contributes to indirect employment of over 52,000 people. The company was renamed
in June 2007 as “Hindustan Unilever Limited”.

          Hindustan Unilever's distribution covers over 1 million retail outlets across
India directly and its products are available in over 6.3 million outlets in the country,
nearly 80% of all retail outlets in India. It estimates that two out of three Indians use its
many home and personal care products, food and beverages.

          Hindustan Unilever was recently rated among the top four companies globally
in the list of “Global Top Companies for Leaders” by a study sponsored by Hewitt
Associates, in partnership with Fortune magazine and RBL Group. The company was
ranked number one in the Asia-Pacific region and in India.




                                                                              Page 39 of 103
           The mission that inspires HUL’s more than 15,000 employees, including over
1,400 managers, is to “add vitality to life”. The company meets every day needs for
nutrition, hygiene and personal care, with brands that help people feel good, look good
and get more out of life. It is a mission HUL shares with its parent company, Unilever,
which holds about 52% of the equity.

           HUL’s heritage dates back to 1888, when the first Unilever product, sunlight
was introduced in India. Local manufacturing began in the 1930s with the
establishment of subsidiary companies. They merged in 1956 to form Hindustan Lever
Limited (the company was renamed Hindustan Unilever Limited on June 25, 2007).
The company created history when it offered equity to Indian shareholders, becoming
the first foreign subsidiary company to do so. Today the company has more than three
lakh resident shareholders.

           HUL’s brands- like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair&Lovely,
Sunsilk, Clinic, Close-up, Pepsodent, Lakme, Brook Bond, Kissan, Knorr, Annapurna,
Kwality-walls are household names across the country and span much categories- soap,
detergents, personal products, tea, coffee, brand staples, ice creams and culinary
products. They are manufactured in over 35 factories, several of them in backward
areas of the country. The operations involve over 2,000 suppliers and associates. HUL’s
distribution network covers 6.3 million retail outlets including direct reach to over 1
million.

           HUL has traditionally been a company, which incorporates latest technology
in all its operations. The Hindustan Lever Research Centre (now Hindustan Unilever
Research Centre) was set up in 1958.

           HUL believes that an organizations worth is also in the service it renders to the
community. HUL focuses on hygiene, nutrition, enhancement of livelihoods, reduction
of greenhouse gases and water footprint. It is also involved in education and
rehabilitation of special or underprivileged children, care for the destitute and HIV-
positive, and rural development. HUL has also responded in case of national calamities/
adversities and contributes through various welfare measures, most recent being the
relief and rehabilitation of the people affected by the Tsunami disaster in India.


                                                                              Page 40 of 103
         HUL’s project Shakti is a rural initiative that targets small villages populated
by less than 5000 individuals. Through Shakti, HUL is creating micro-enterprises
opportunities for rural woman, thereby improving their livelihood and the standard of
living in rural communities. Shakti also provides health and hygiene education through
the Shakti Vani programme. The program now covers 15 states in India and has over
45,000 women entrepreneurs in its fold, reaching out to 100,000 villages and directly
reaching to over three million rural consumers.

         HUL also runs rural health programme, lifebuoy Swasthya Chetana. The
programme endeavours to induce adoption of hygienic practices among rural Indians
and aims to bring down incidence of diarrhea. It has already touched 120 million people
in approximately 50,676 villages across India.

         If HUL straddles the Indian corporate world, it is because of being single-
minded in identifying itself with Indian aspirations and needs in every walk of life.

         160 million times a day, someone chooses a Unilever product. From feeding a
family to keeping their home clean and fresh, Unilever’s brands are part of every day
life. With 400 brands spanning 14 categories of home, personal care and the food
products, no other company touches so many people’s lives in so many different ways.
Their brand portfolio has made them leaders in every field in which they work. It
ranges from much loved world favourites including Lipton, Knoor, Dove and Omo, to
trusted local brands such as Blue Band and Suave. From comforting soaps to warm a
winter’s day, to sensuous soaps that you feel fabulous, their products help people to get
more out of the life.

HISTORY OF HUL

         Unilever’s corporate mission to add vitality to life- shows how clearly the
business standards 21st century- consumers and their lives. But the spirit of this mission
forms thread that runs throughout our history. This was long before the phrase
“corporate Mission” had been invented, but these ideas have stayed at the heart of our
business. Even if their language- and the notion of only women doing house work- has
become outdated.


                                                                             Page 41 of 103
         In a history that crosses 3 centuries, Unilever’s success has been influenced by
the major events of the day- economic boom, depression, world wars, changing life
style of the consumers and the advances of the technology. And throughout we have
created products that help the people get more out of the life- cutting the time spent on
the house hold chores, improving nutrition, enabling people to enjoy the food and take
care of their homes, their clothes and themselves.

         In the late 19th century, the business that would later become Unilever was
among the most philanthropic of their time. They set up the projects to improve a lot
of their workers and created products with a positive social impact, making hygiene and
personal care, common place and improving the nutrition through adding the vitamins
to food that were already daily staples.

         Today, Unilever still believes that success means acting with “the highest
standards to the corporate behaviour towards our employees, consumers and the
societies and the world in which we live. Over the years we have launched or
participated in an ever growing rate of the initiatives to the sources sustainable
suppliers of the raw materials protect environments, support local communities and
mush more. Through this time line you may see how the brand portfolio has evolved.
At the beginning of 21st century, our path to growth strategy focused us on global high
potential brands and our vitality mission is taking us into a new phase of the
development. More than ever, our brands are helping people “feel good, look good and
get more out of life”.




MODERN FOOD INDUSTRIES LIMITED

         Modern Food Industries (India) Limited (MFIL) was incorporated on 1st
October 1965, under the name and style “modern bakeries limited” as a government
company under the administrative control of “The department of food, Ministry of the
food supplies”. It was registered under the companies’ act 1956. After that the
management of the company merged with Hindustan Unilever Limited, Corporate
giants of India.


                                                                             Page 42 of 103
         The company has other Bakery units in Bangalore, Kolkata, Hyderabad and
Chennai. Modern is the leader in the bread market, having 40% of the market share.
Modern Food Industries (India) Limited (MFIL) was merged with the Hindustan
Unilever Limited (HUL) in the year 2000 taking over 74%of the shares for a period of
three years commencing from January 2000. HUL has acquired the balance of 26%
equity of MFIL from the government of India. There by completing the disinvestment
of the Government of India equity of MFIL.

MISSION

         The mission is “ to Add Vitality to life”, they met every day needs for
nutrition; hygiene and the personal care with the brands that help people looks good,
feel good and get more out of life.

         Vitality means different things to different people. Some see it as energy;
others view it more broadly as a healthy state of body and mind-of feeling alive.
Whatever their personal definition, millions of people around the world use their
products daily to add vitality to their lives-whether that is through feeling great
because they have got shiny hair and brilliance smile, keeping their homes fresh and
clean or by enjoying a great cup of tea, satisfying meals or healthy snacks.

         Ever since the 19th century, when William Heskth Lever stated that the
company’s mission was to make cleanliness common place; to lessen work for the
women; to foster health and contributes to personal attractiveness, that life may be
more enjoyable and rewarding for the people who use our products. Vitality defines
what they stands for; their values, what make them different, and how they contribute
to society. It is the common’s thread that links their brands and it is central to the
unique way they operate around the world. Their vitality mission commits them to
growing their business by addressing health and nutritional issues. They focus on the
priorities including the children and the family nutrition, cardiovascular health and the
weight management.




                                                                              Page 43 of 103
         Our culture also embodies vitality. Adding the vitality to life requires the
highest standards of behaviour towards every one we work with, the communities we
touch and the environments on which we have an impact. The growing demand for
more vitality in life provides us with a huge opportunity for the growth. The way we
work and the products we developed are shaped by the consumer trends, along with the
need to helping to raise the health and the hygiene standards in both the developing
and the industrialized regions of the world.




ENVIRONMENTAL POLICY

         Hindustan Unilever Ltd (HUL) is committed to meet the needs of customers
and consumers in an environmentally sound manner, through continuous improvement
in environmental performance in all our activities. Management at all levels, jointly
with employees, is responsible and will be held accountable for companies’
environmental performance.

         The company recognizes its joint responsibility with the government and the
public to protect environment and is committed to regulate all its activities so as to
follow best practicable means for minimizing adverse environmental impact arising out
of its operations.

         The company is committed to making its products environmentally acceptable,
on a scientifically established basis, while fulfilling consumer’s requirements for
excellent quality, performance and safety.

QUALITY POLICY

“Quality is fundamental to their business success”

         Unilever’s mission is to meet every day needs for nutrition, hygiene and
personal care with brands that help people feel good, look good and get more out of
life. And a key requirement is building in the quality expectations of our consumers
into our products.



                                                                            Page 44 of 103
         To win consumers confidence and loyalty, we need consistently deliver
branded products of excellent quality. We understand the different needs of our
consumers and customers and strive to develop and deliver superior brands to ensure
that they are the preferred choice. And by applying consistently high standards, we are
able to do things right first time, cut waste, reduce costs and drive profitability.

         Our quality policy describes the principles that everyone in unilever follows
whatever they are in the world, to ensure that we are recognized and trusted for our
integrity, the quality of our brands and products, and the high standards we set.




PRINCIPLES OF THE QUALITY POLICY

 Putting the safety of our products and our consumers first
 Putting consumers and customers at the heart of our business
 Quality is a shared responsibility
 Building and maintaining excellent systems to ensure the quality and safety of our
 products




SAFETY PRINCIPLES
         HUL’s occupational safety and the health policy is based on and supported by
the following eight principles. These principles have the same status as the companies
code of the business principles.
 All injuries and the occupational illnesses are preventable
 All operational exposures can be safe guarded
 Safety evaluations of all the business process is vital
 Working safety is a condition of the employment
 Training all the employees to work safely is essential
 Management audits are the must
 Employee involvement is a must




                                                                              Page 45 of 103
COMPETITORS OF HINDUSTAN UNILEVER MODERN FOOD INDUSTRIES
LIMITED

         Modern foods main competitors are ELITE, ASIAN and a number of the
regional manufactures, with the highly cost effective operations while MFIL continues
to languish from the “coat legacy” of having been a PSU.

         According to the industry data, the size of the bread market is estimated at Rs
2000 crore (inclusive of organized and unorganized sector). The market however is
dominated by the unorganized sector. Modern and Britannia have the largest share of
the organized market at about 7% and 4 % respectively. The other significant players in
the organized market are the harvest gold.

         To meet the competitions of the industry, Hindustan Unilever Modern Food’s
portfolio was diversified and extended to buns recently, followed by the cakes and the
Rusk’s in a few selected markets, and would be made available on national level
subsequently. Synergizing brand- related activity with HUL’s other brands at a regional
level is another technique to meet the regional competitions of Hindustan Unilever
Modern Food Industries Ltd. In Delhi, for example, modern buns were promoted along
with the Kwality walls ice-creams and the Taj tea. The company is also looking at
reinforcing its distribution across markets in the western and the northern region,
specifically in the regions where the brand is not directly present.




PRODUCT PROFILE

         Every single society had some form of bread or another. Some baked food
contains flour starch products that corporate the other ingredients for flavouring. The
bread of today Barley resembles the same bread it evolved from the European bread.
Bread is the most common form of food in the world. Softness as they shapes of bread
goes to other processed packed foods, bread is highly perishable item and it has a self
life only for 3-4 days.


                                                                            Page 46 of 103
         By 2600 B.C Egyptians had invented the modern leavened bread by baking
thick, fermented bakery gruel. They soon found that whole bakery was good for
producing yeast leavens, wheat was best for baking. Slowly with the pass pf time, bread
took the classical shape and the structure. Loaves of the interesting sizes and shapes
using the grains found most popularly in the region-wheat, rice and the cone. All
husked, moiled processed wheat and rice were stored for the consumption. And bread
was easy to consume flour products. Bread stored for the long periods of the time.

         Fortification of the common food stuff is the cheapest and the most practical
method used to combat the malnutrition, which is largely prevalent among the Indian
population. Conversely industrialization brought more food to the people who could not
get food easily.



           Sl.No                      PRODUCT NAME               PACKET SIZE

           1                          White bread                800gm

           2                          Kairali bread              400gm

           3                          Sweet bread                400gm

           4                          Sweet bread                500gm

           5                          Milk classic               400gm

           6                          Milk classic               600gm

           7                          Milk bread                 400gm

           8                          Atta sweet bread           400gm

           9                          Atta white bread           400gm

           10                         Premium sweet bread        400gm

           11                         Oven fresh bread           450gm

           12                         Fruity bread               200gm

           13                         Sweet bun                  200gm




                                                                            Page 47 of 103
MODERN ATTA BREAD

         HINDUSTAN Unilever Modern Food Industries Limited has introduced a new
variant of its Modern Bread brand across all the markets nationally. The new whole
wheat meal bread variant- branded modern atta bread of the modern bread brand is the
first variation of the original modern milk classic brand. The key ingredient of the bread
is wheat. Modern atta bread is priced at Rs14 for a 400gm pack. Being a fresh market
product, which demands clockwork supply chain management, modern atta bread is
being rolled out in the phases, and is presently available in Delhi, Mumbai, Bangalore
and Chennai.




                                                                            Page 48 of 103
CHAPTER 4




            Page 49 of 103
4.1 Data Analysis

1, Gender

Table No.4.1

Showing details of gender based classification of respondents




           Sl No                    Gender             Total Respondents




             1                       Male                       40




             2                      Female                      60



Chart No.4.1


                           Respondants
  70

  60

  50

  40

                                                           Respondants
  30

  20

  10

   0
                 Male                  Female


                                                                     Page 50 of 103
INTERPRETATION

       From the table No.1 it is clear that, in the total hundred respondents
40% are males and the remaining 60% are females.




                                                                 Page 51 of 103
     2, Age

     Table No.4.2

     Showing details of age distribution of respondents


          Sl no         Age group             No. of respondents
                                           Male              Female       Total
            1            Below 25         6(40%)             9(60%)        15
            2              25-40         17(33%)             35(67%)       52
            3              40-60         15(48%)             16(52%)       31
            4              60-80         2(100%)                           2

     Source: compiled from primary data

     (Figures in the parentheses are percentages to total)

     Chart 4.2



                                     Respondants
60

50

40

30
                                                                               Respondants

20

10

 0
         Below 25            25-40             40-60              60-80




                                                                            Page 52 of 103
INTERPRETATION

         From the table No.2 it is understand that, majority of the respondents are in
age group 25-40 years. Second to that are 40-60 age groups. This shows these people
have the highest purchasing ability.




                                                                           Page 53 of 103
3, Annual income

Table No.4.3

Showing details of annual income distribution of respondents

 Sl no              Annual income                  No. of respondents

                                                 Male         Female        Total

  1                     Below 60000                                           0
  2                60,000-1,50,000              4(25%)        12(75%)        16
  3               1,50,000-2,50,000             8(26%)        23(74%)        31
  4               2,50,000-4,00,000             14(56%)       11(44%)        25
  5                4,00,000 onwards             5(71%)        2(29%)          7



Source: compiled from primary data

(Figures in the parentheses are percentages to total)




 Chart 4.3:


                                      Respondants
   35

   30

   25

   20
                                                                           Respondants
   15

   10

      5

      0
          below 60000      0.6-1.5    1.5-2.5        2.5-4     4 onwards


                                                                            Page 54 of 103
INTERPRETATION

         From the table No.3 it is known that, majority of the respondents annual
income comes under the range 1, 50,000 to 2, 50,000. 21% of the total respondents not
responded to this question.




                                                                          Page 55 of 103
     4, Major portion of your income spent in which portion

     Table No.4.4

     Showing details of income distribution of respondents in various areas

          Sl No           Diff areas           No of respondents

                                             Male            Female         Total

            1               Food                             9(100%)          9

            2             Education        20(31%)           45(69%)          65

            3              Health           5(45%)           6(55%)           11

            4               Travel         15(100%)                           15



     Source: compiled from primary data

     (Figures in the parentheses are percentages to total)

     Chart 4.4:



                                Respondants
70

60

50

40
                                                                          Respondants
30

20

10

 0
           food           education          health              travel



                                                                                    Page 56 of 103
INTERPRETATION

         From the table No. 4 it is clear that, 65% of the total respondents are spending
their major portion of income in the field of education.




                                                                            Page 57 of 103
5, what is your usual breakfast

Table No.4.5

Showing details of usual breakfast of the respondents

        Sl No             Diff areas               No of respondents

                                                Male          Female         Total

          1               Chapathi             6(75%)         2(25%)           8

          2                 Dosa               17(38%)        28(62%)         45

          3                 Puttu              3(23%)         10(77%)         13

          4                Eddali              10(34%)        19(66%)         29

          5                Appam               4(80%)         1(20%)           5

Source: compiled from primary data

(Figures in the parentheses are percentages to total)

Chart 4.5:


                                       Respondants
   50
   45
   40
   35
   30
   25
                                                                          Respondants
   20
   15
   10
    5
    0
         chapathi       dosa           puttu       eddali       appam




                                                                        Page 58 of 103
INTERPRETATION

        From the table No.5 it is clear that, dosa is the favourite breakfast for 45% of
the respondents, but appam is the least favourite one (only 5%) of the respondents.




                                                                            Page 59 of 103
     6, How you procure materials for breakfast

     Table No.4.6

     Showing details of procurement of respondents

          Sl No           Diff areas            No of respondents

                                              Male           Female      Total

            1            Local brands       9(29%)           22(71%)      31

            2              Branded          21(47%)          24(53%)      45

            3             Self made         10(42%)          14(58%)      24



     Source: compiled from primary data

     (Figures in the parentheses are percentages to total)

     Chart 4.6:


                                 Respondants
50

45

40

35

30

25
                                                                       Respondants
20

15

10

 5

 0
          local brand            branded              selfmade




                                                                               Page 60 of 103
INTERPRETATION

         From the table no 6 it is understand that, majority of the respondents are going
for the branded one, exactly 45%. The second toper in the table is local brand and is in
the order 31%.




                                                                           Page 61 of 103
7, the place you shop usually

Table No.4.7

Showing details of usual shopping destination of respondents

  Sl No                  Diff areas             No of respondents

                                              Male         Female       Total

     1            Local grocery shop         20(44%)      25(56%)        45

     2                    Thriveni           7(29%)       17(71%)        24

     3                   Big Bazaar          12(67%)      6(33%)         18

     4                    Reliance            1(8%)       12(92%)        13



Source: compiled from primary data

(Figures in the parentheses are percentages to total)

Chart 4.7:


                                          Respondants
   50

   45

   40

   35

   30

   25
                                                                          Respondants
   20

   15

   10

    5

    0
          grocery shop         thriveni      big bazaar      reliance



                                                                          Page 62 of 103
INTERPRETATION

         From the table No. 7 it is known that Forty five percentages (45%) of the total
respondents are chosen local grocery shop as the usual shopping destination. Only 13%
of the total respondents are usually visit reliance for their usual shopping.




                                                                                Page 63 of 103
     8, Opinion about packed food item

     Table No.4.8

     Showing opinion about packed food item of the respondents

         Sl No            Diff areas              No of respondents

                                               Male           Female    Total

           1                 Bad                              4(100%)     4

           2               Average            15(42%)         21(58%)    36

           3                Good              25(42%)         34(58%)    59

           4              Excellent                           1(100%)     1



      Source: compiled from primary data

      (Figures in the parentheses are percentages to total)

      Chart 4.8:


                                   Respondants
70


60


50


40

                                                                        Respondants
30


20


10


 0
          bad            average           good            excellent



                                                                              Page 64 of 103
INTERPRETATION

        From the table No.8 it is clear that, 59% of the total respondents rated packed
food item as good one, only 4% of the total respondent differ to this opinion and rated
packed food items as bad one.




                                                                           Page 65 of 103
     9, do you have the habit of purchasing packed rice flour

     Table No4.9

     Showing the respondents habit of purchasing packed rice flour

          Sl No            Diff areas            No of respondents

                                               Male           Female    Total

            1                 Yes             31(41%)         45(59%)    76

            2                 No              9(38%)          15(62%)    24



      Source: compiled from primary data

      (Figures in the parentheses are percentages to total)

      Chart 4.9:




                                    Respondants
80

70

60

50

40
                                                                              Respondants
30

20

10

0
                    yes                                 no




                                                                                Page 66 of 103
INTERPRETATION

        From the table No.9 it is understand that, in the total hundred (100) respondent
76% of them are having the habit of purchasing packed rice flour.




                                                                          Page 67 of 103
     10, if you choose branded product, which one

     Table No 4.10.

     Shows details of respondents favourite brand in the rice flour industry


         Sl No             Diff areas             No of respondents

                                                Male         Female       Total

           1                Nirapara           24(40%)       36(60%)       60

           2               Brahmins            8(38%)        13(62%)       21

           3              Double horse         8(42%)        11(58%)       19



     Source: compiled from primary data

     (Figures in the parentheses are percentages to total)

     Chart 4.10:


                                 Respondants
70

60

50

40

                                                                       Respondants
30

20

10

0
           nirapara             brahmins            double horse




                                                                                Page 68 of 103
INTERPRETATION

        From the table No.10 it is clear that 60% of the total respondent likes to use
the products by Nirapara for making their breakfast.




                                                                           Page 69 of 103
11, whether you are satisfied with existing product

Table No 4.11.

Showing the details of respondents satisfaction with the existing product



    Sl No             Diff areas             No of respondents

                                           Male              Female    Total

        1                  Yes            34(43%)            46(57%)    80

        2                  No             6(30%)             14(70%)    20



Source: compiled from primary data

(Figures in the parentheses are percentages to total)

Chart 4.11:


                                   Respondants
   90

   80

   70

   60

   50

   40                                                                    Respondants

   30

   20

   10

    0
                     yes                                no




                                                                          Page 70 of 103
INTERPRETATION

         From the table No. 11it is known that, the lion’s portions of the respondents (ie
80%) are satisfied with the existing product. Only 20% of the total respondents are not
satisfied with the existing products.




                                                                            Page 71 of 103
     12, if yes, reason for your selection

     Table No 4.12.

     Showing details of the respondents reason for selecting the product

      Sl No          Diff areas                    No of respondents
                                                   Male           Female          Total

                  1 Quality                            13(34%)          25(66%)               38

                  2 Price                                5(38%)          8(62%)               13
                  3 Brand image                          8(62%)          5(38%)               13

                  4 Availability                         3(23%)         10(77%)               13

                  5 Others                           1(33%)              2(67%)                3



     Source: compiled from primary data

     (Figures in the parentheses are percentages to total)

     Chart 4.12:


                                   Respondants
40

35

30

25

20
                                                                            Respondants
15

10

5

0
        quality      price        brand image   availability   others



                                                                                          Page 72 of 103
INTERPRETATION

         From the table No.12 it is understand that, 38% of the total respondents choose
the existing products due to its quality only. All other factors like price (13%), brand
image(13%) are less influences the satisfaction level.




                                                                             Page 73 of 103
    13, if no, reason for that

    Table No 4.13.

    Showing details of respondents reason for not selecting a specific product.

             Sl No                   Diff areas                No of respondents

                                                            Male          Female      Total

                   1                Low Quality            2(50%)        2(50%)         4

                   2                High Price             2(29%)        5(71%)         7

                   3           Low Brand image                                          0

                   4           Low Availability            2(67%)        1(33%)         3

                   5                  Others               4(67%)        2(33%)         6



    Source: compiled from primary data

    (Figures in the parentheses are percentages to total)

    Chart 4.13:



                                          Respondants
8

7

6

5

4
                                                                                    Respondants
3

2

1

0
     low quality       high price    low brand image low availability    others




                                                                                   Page 74 of 103
INTERPRETATION

         From the table No.13 it is clear that the, majority of the respondents’ reason
for not selecting a specific product is high price of the product.




                                                                            Page 75 of 103
      14, Are you heard of the brand “MODERN”

      Table No 4.14.

      Showing respondents awareness of the brand “MODERN”



              Sl No           Diff areas          No of respondents
                                                 Male         Female   Total
                1                Yes              40           55       95
                2                No                             5       5



      Source: compiled from primary data

      (Figures in the parentheses are percentages to total)

      Chart 4.14:



100

 90                                 Respondants
 80

 70

 60

 50

 40

 30
                                                                            Respondants
 20

 10

  0
                      yes                               no




                                                                               Page 76 of 103
INTERPRETATION

        From the table No.14 it is understand that, 95% of the total respondents are
known about the brand “Modern”. Only 5% of the respondents are don’t know the
company.




                                                                          Page 77 of 103
15, in the following modern products which one you use

Table No 4.15.

Showing details of respondents know how about different “modern”
products


           Sl No              Diff areas                No of respondents
                                                      Male            Female        Total
              1             Modern Bread          38(42%)            52(58%)         90
              2              Modern Atta
              3             Modern Cake               2(40%)         3(60%)           5
              4            Rusk & cookies

Source: compiled from primary data

(Figures in the parentheses are percentages to total)

Chart 4.15:


                                      Respondants
   100
    90
    80
    70
    60
    50
                                                                                Respondants
    40
    30
    20
    10
     0
              Bread            atta            cake            cookies& rusk




                                                                               Page 78 of 103
INTERPRETATION

        From the table No.15 it is clear that the, 90% of the total respondents know the
modern bread and the other 5% are aware about the modern cake. The respondents
know the brand “modern” only through these two items.




                                                                          Page 79 of 103
      16, Are you looking for a better product/company in the rice flour
      market

      Table No 4.16.

      Showing the details of respondent’s willingness to shift to a new better product



       Sl No          Diff areas                No of respondents

                                                Male          Female            Total

                  1 Yes                          36(40%)            53(60%)                89

                  2 No                            4(36%)               7(64%)              11


      Source: compiled from primary data

      (Figures in the parentheses are percentages to total)

      Chart 4.16:


                                   Respondants
100

 90

 80

 70

 60

 50
                                                                                 Respondants
 40

 30

 20

 10

  0
                      yes                              no



                                                                                        Page 80 of 103
INTERPRETATION

         From the table No.18 it is understand that, 89% of the total respondents are
ready to shift to a new better product if it is available in the market. That means only
11% of the total respondents are loyal to the existing product or company.




                                                                             Page 81 of 103
     17, Expected price range for 500gm (1/2 kg) of new product

     Table No 4.17.

     Showing the respondents expected price range about new product

                   Sl No             Diff areas              No of respondents

                                                           Male         Female      Total

                    1                  20-22              8(50%)        8(50%)        16

                    2                  22-25              20(36%)      36(64%)        56

                    3                  25-27              12(44%)      15(56%)        27

                    4                  27-30                           1(100%)        1



     Source: compiled from primary data

     (Figures in the parentheses are percentages to total)

     Chart 4.17:




                                      Respondants
60


50


40


30
                                                                                 Respondants

20


10


 0
           20-22             22-25                25-27             27-30



                                                                                 Page 82 of 103
INTERPRETATION

        From the table No.17 it is clear that the, 56% of the total respondents are ready
to buy new rice flour packet of 500gm for a price range of 22-25 rupees.




                                                                           Page 83 of 103
     18, what influence you to buy a food item?

     Table No 4.18.

     Showing respondents factors of influence to buy a food item


         Sl No              Diff areas              No of respondents
                                                  Male          Female    Total
           1              Advertisement          8(50%)         8(50%)     16

           2                Reference            14(58%)        10(42%)    24
           3               Experience            18(30%)        42(70%)    60



     Source: compiled from primary data

     (Figures in the parentheses are percentages to total)

     Chart 4.18:




                                     Respondants
70

60

50

40

                                                                           Respondants
30

20

10

0
          advertisement              reference               experience


                                                                           Page 84 of 103
INTERPRETATION

        From the table No.18 it is clear that, 60% of the total respondents buy a food
item out of experience. Advertisements influence a person to buy a food item 16%
only.




                                                                          Page 85 of 103
19, Give your suggestion for an upcoming product
         The suggestions of the people are almost similar in nature. When summarizing
their views about price of the product we can say they are very much interested to buy
the product for a price range of 23-26 rupees for a pack of 500gm of rice flour.

         The customers are very much conscious about the quality of the product; their
suggestion is that the quality must stand out in the lot of competitors. They are not
ready to negotiate in the quality aspect of the product.

         The other suggestions of the respondents are the availability of the product.
The consumers are ready to buy the easily available food materials. If the desired
branded product is not readily available they will adjust with the available one.




                                                                            Page 86 of 103
STATISTICAL ANALYSIS




                       Page 87 of 103
 4.2 Statistical Analysis

 CHI-SQUARE ANALYSIS

1, Hypothesis: The satisfaction and product quality are independent

Observed values


            Quality       Price   Brand   Availability   Others   Total

   Yes        38           13      13         13           3       80

   No          4           7       0           3           6       20

              42           20      13         16           9      100



Expected values

E (38) = (42*80)/100 =33.6

E (4) = (42*20)/100 =8.4

E (13) = (20*80)/100 =16

E (7) = (20*20)/100 =4

E (13) = (13*80)/100 =10.4

E (0) = (13*20)/100 =2.6

E (13) = (16*80)/100 =12.8

E (3) = (16*20)/100 =3.2

E (3) = (9*80)/100 =7.2

E (6) = (9*20)/100 =1.8


                                                                    Page 88 of 103
               Observed(O)        Expected(E)       O-E          (O-E)2          (O-E)2/E

                    38               33.6           4.4          19.36          0.57619048

                    4                 8.4           -4.4         19.36          2.3047619

                    13                16             -3             9             0.5625

                    7                 4              3              9              2.25

                    13               10.4           2.6           6.76             0.65

                    0                 2.6           -2.6          6.76              2.6

                    13               12.8           0.2           0.04           0.003125

                    3                 3.2           -0.2          0.04            0.0125

                    3                 7.2           -4.2         17.64             2.45

                    6                 1.8           4.2          17.64              9.8

Total                                                0                          21.2090774




        Degree of freedom= (R-1)*(C-1)

                          = (2-1)*(5-1)

                          = 1*4

                          =4




         The table value = 9.488

                 Calculated value is higher than table value, so the hypothesis is rejected. That
        means the satisfaction and product quality are dependent.




                                                                                   Page 89 of 103
2, Hypothesis: habit of purchasing and opinion of packed food is independent

Observed value (O)


                        Bad       Average       Good        Excellent          Total

         Yes             3          27            45            1               76

         No              1           9            14            0               24

        Total            4          36            59            1              100



 Expected value

 E- Expression for expected value

 E (3) = (4*76)/100

       = 3.04

 E (1) = (4*24)/100

       = 0.96

 E (27) = (36*76)/100

        = 27.36

 E (9) = (36*24)/100

       = 8.64

 E (45) = (59*76)/100

        = 44.84

 E (14) = (59*24)/100

       = 14.16




                                                                        Page 90 of 103
        E (1) = (1*76)/100

             =0.76

        E (0) = (1*24)/100

             = 0.24


             Observed(O)          Expected(E)     O-E          (O-E)2          (O-E)2/E
                     3               3.04         -0.04        0.0016         0.00052632
                     1               0.96         0.04         0.0016         0.00166667
                  27                 27.36        -0.36        0.1296         0.00473684
                     9               8.64         0.36         0.1296            0.015
                  45                 44.84        0.16         0.0256         0.00057092
                  14                 14.16        -0.16        0.0256         0.00180791
                     1               0.76         0.24         0.0576         0.07578947
                     0               0.24         -0.24        0.0576             0.24
Total                                               0                         0.34009813




    Degree of freedom =(R-1)*(C-1)

                             = (2-1)*(4-1)

                             = 1*3

                             =3

    Table value =7.815

               Calculated value is less than that the table value so the hypothesis is accepted.




                                                                                  Page 91 of 103
CHAPTER 5




            Page 92 of 103
5.1Summary of the study

         In the present study effort was made to evaluate the scope for a new, product
in the field of rice flour market by modern food Ltd (HUL). The questionnaire method
was followed to find out the responses of respondents. The findings and suggestions
from the above study are stated in this chapter.chi square test is used to find out the
different relationships.




                                                                         Page 93 of 103
5.2 Findings

      As per the table no. 4, 65% of the total respondents spent their major portion
       of the income in the education. It shows the higher amount of cost of living
       that prevailing in the society and the expenditure incurred for education.
      From the table no.5, we can easily find out that 45% of the total respondents
       wish to have dosa for their usual breakfast. The next favourite food item of the
       people for the breakfast is iddli (29%).
      As per the table no.6, we can find out that in the total 100 respondents 45%
       people procure branded product materials for their breakfast, 31% people
       consume available local brand (products) materials and the remaining 24%
       rely on the home made materials.
      From the table no.7, we can find out that 45% of the people rely in the local
       grocery shop for their usual shopping, 24% picks Thriveni as their usual
       shopping place.
      From the table no.8, the following result is available.59% of the total
       respondents’ opinion about packed food item is good. This provides a great
       opportunity for a reputed company planning to introduce packed quality rice
       flour in that segment.
      From the table no.9, it is clear that 76% of the total respondents having the
       habit of the purchasing the packed rice flour. It is a great opportunity for a new
       company planning to introduce a product in that segment.
      As per the table no.10 we can find out that Nirapara is the favourite brand
       among the 60% of the total 100 respondents.21% of the respondents’s
       favourite brand is Brahmins.
      It is very clear that, 80% of the total respondents are very much happy with the
       existing product which they use. (vide table no.11)
      From the table no.12 it is understood that, 38 respondents out of, 80 satisfied
       customers of the existing product feel quality as the criterion for the selection.




                                                                           Page 94 of 103
   High price of the product is the reason for dissatisfaction for 7 respondents
    (out of 20 unsatisfied customers). (vide table no.13)
   From the table no.14 it is clear that, 95% of the total respondents are aware
    about the brand “MODERN”.
   From the table no. 15 it is quite clear that, 90 respondents out of, 95
    respondents who know the brand Modern only through product bread.
   As per the table no.16 we can say that, out of 100 total respondents 89 of them
    are ready to shift to a new better product if it is available in the market.
   56 people out of 100 people likes to buy the new product in the price range 22-
    25 and the other 27 people in the pool of 100 likes the price range 25-27.(vide
    table no.17)
   It is clear that, only 16 percentage of the total respondents influence by
    advertisement to purchase a food product, so company should give more
    importance to quality to advertisement (vide table no.18).




                                                                          Page 95 of 103
5.2 Suggestions
       At the time of launching the product in to the market, the company should give
        more emphasis to the dosa mix of the rice flour. This suggestion is based on
        the data that the researcher offers to the company. The respondents polled
        their views regarding the favourite food item of their breakfast.(Refer the table
        no.5 for more information).

       At the time of product distribution the company must give due importance to
        the local grocery shops, because 45% of the respondents are relying on the
        local grocery shops for their shopping. If the product is not available in such
        kind of shops that will affect the sales figures of the company. So make a
        robust distribution channel for the product (vide table no.7).

       The main competitor for the upcoming product is Nirapara, so try to compete
        with the brand Nirapara in terms of quality, price and availability. Try to create
        a competitive edge to the rival.(vide table no.10)

       The company have a very good chance to capture the market share if they are
        ready to incorporate the following traits in their product. The traits that will
        decide the fortune of the new products should be good quality, reasonable
        pricing and good availability of the product.(vide table no.12)
     The brand “MODERN” is known to people mainly due to its flagship product
        bread. It will definitely give a competitive advantage to company at the same
        time company should give more emphasis to get popularise its other products
        like atta, rusk and cookies too.(vide table no.15 for further information)




                                                                           Page 96 of 103
5.3 Conclusion
   By conducting the study “A brief study of marketing research process with
special reference to pre-launch of rice flour by modern food Ltd”, we can
conclude that there is huge chance for a company like modern in the rice flour
market. The brand image of modern will help them in this new product too.
Majority of the customers are ready to shift to a new and better quality
product so company should make use that chance.




                                                                     Page 97 of 103
CHAPTER 6




            Page 98 of 103
Bibliography
Books
           1. Paneerselvam. R-Research Methodology-Prentice Hall of
                India- Forth edition 2007
           2. Kothari. C.R, Research methodology, methods and
                Techniques, New Age INTERNATIONAL (P) Limited
                Publishers, New Delhi,2004
           3. Panda .K. Tapan-Marketing Management, Text and Cases-
                Excel Books-Second Edition 2007, 2008.
Journal
           1.     Global business review-volume 10; number1; January-June
                  2009

Websites
           1. http://www.nc3rs.org.uk/downloaddoc.asp?id=400
           2. http://en.wikipedia.org/wiki/Chi-square_test
           3. www.bios.niu.edu/johns/genetics/chi_square.ppt
           4. http://dcmsme.gov.in/publications/pmryprof/food/ch25.pdf




                                                                 Page 99 of 103
Annexure




           Page 100 of 103
                            QUESTIONNAIRE
1.   Gender
         Male
         Female

2. Age
         Below 25
         25-40
         40-60
         60-80

3. Annual income
       Below 60000
       60000-150000
       150000-250000
       250000-400000
       400000 onwards

4. Major portion of your income spent in which part
       Food,
       Education
       Healthcare
       Travel

5. What is your usual breakfast
      Chapatti
      Dosa
      Puttu
      Iddli
      Appam

6. How you procure materials for breakfast
      Local brands available
      Branded products
      Self made

7. The place you shop usually
       Nearest grocery shop
       Thriveni
       big bazaar
       Reliance fresh




                                                      Page 101 of 103
8. Opinion about packed food item
       Bad
       Average
       Good
       Excellent
9. Do you have the habit of purchasing packed rice powder
       Yes
       No

10. If you choose branded company products which one
         Nirapara
         Brahmins
         Double horse

11. Whether you are satisfied with existing product
       Yes
       No

12. If yes, reason for your selection
         Quality
         Price
         Brand image
         Product availability
         Others

13. If no, reason for that
          Low quality
          High price
          Low brand image
          Low product availability
          Others

14. Are you heard about the brand “Modern”
        Yes
        No

15. In the following modern products which one you use
         Modern bread
         Modern atta
         Modern cake
         Modern cookies and rusk

                                                            Page 102 of 103
16. Are you looking for a better product/company in the rice flour market
        Yes
        No


17. Expected price range for 500gm(1/2 kg) of new product
        20-22
        22-25
        25-27
        27-30

18. What influence you to buy a product
       Advertisement
       References
       your own experience


19. Give your suggestion for an upcoming product
    …………………………………………………………………………………………
    …………………………………………………………………………………………
    …………………………………………………………………………………………
    …………………………………………………………………………………………
    …………………………………………………………………………………………
    …………………………………………………………………………………………
    …………………………………………………………………………………………
    ……………………………………………………………………………………




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