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TABLE OF CONTENTS
Sr. No Particulars Page No.
INTRODUCTION
1 a. Problem Statement 6
2 b. Research Objectives 7
c. Importance and benefits of study 9
3 d. Literature Review 9
METHODOLOGY
4 a. Research design 32
5 b. Sample design 32
6 c. Data collection 34
7 d. Data tabulation and analysis 34
8 e. Limitations 34
CONCLUSION
9 a. Findings and conclusion 35
10 b. Recommendation 47
11 c. Summary 49
APPENDIX
12 a. Research proposal 51
13 b. Sample questionnaire 58
14 c. Bibliography 62
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INTRODUCTION
Problem Statement—
A study of Indian consumers’ perception with respect to Tetra packed milk.
2
Research Objectives—
To analyse the factors that affect the consumers’ preferences for buying milk.
To analyse the attributes of tetra packs that appeal to the customer.
To see if demographic factors affect the consumers milk buying decision.
3
Importance of Study—
Behavior of the buyers with respect to tetra packed milk can be learnt.
Demographic influence on the buying habits of the consumer can be observed.
Benefits of the Study—
This research finding would be very useful to the organizations selling tetra
packed milk. To name some of the major companies in this business are Nestle,
Amul, etc.
These companies would be able to understand the customers’ attitude towards
their product. Using the findings of this research, they would be able to align
themselves to the consumer’s tastes and preferences.
It would also enable them to adopt appropriate promotional strategies, pricing
policies, etc.
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Literature Review---
Consumer Perception:
Perception is a process by which individuals organize and interpret their sensory
impressions in order to give meaning to their environment. Perception is also defined as
the process, act, or faculty of perceiving.
1. The effect or product of perceiving.
2. Psychology.
a. Recognition and interpretation of sensory stimuli based chiefly on
memory.
b. The neurological processes by which such recognition and interpretation
are affected.
3.
a. Insight, intuition, or knowledge gained by perceiving.
b. The capacity for such insight.
Recognition and interpretation of sensory stimuli based chiefly on memory.
The representation of what is perceived; basic component in the formation of
a concept [syn: percept, perceptual experience] 2: a way of conceiving
something; "Luther had a new perception of the Bible" 3: the process of
perceiving 4: knowledge gained by perceiving; "a man admired for the depth
of his perception" 5: becoming aware of something via the senses [syn:
sensing]
Human perception depends on the senses. The classical five senses are sight, hearing,
smell, taste and touch. Along with these there are at least four other senses:
proprioception (body awareness), equilibrioception (balance), thermoception (heat) and
nociception (pain). Beyond these, some believe in the existence of other senses such as
precognition (or foretelling) or telepathy (direct communication between human
minds/brains without transmittance through any other medium). While these are
controversial, it is known that animals of other species possess senses that are not found
in humans: for example, some fish can detect electric fields, while pigeons have been s
The subjective nature of perception, and hence of cognition, has attracted the attention
of philosophers since antiquity, for example in the qualia which have been known since
the Sufi thinkers, or in the extreme idealism of George Berkeley.
Perception is one of the oldest fields within scientific psychology, and there are
correspondingly many theories about its underlying processes. The oldest quantitative
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law in psychology is the Weber-Fechner Law, which quantifies the relationship between
the intensity of physical stimuli and their perceptual effects
hown to detect magnetic fields and to use them in homing. Many cognitive
psychologists hold that, as we move about in the world, we create a model of how the
world works. That is, we sense the objective world, but our sensations map to percepts,
and these percepts are provisional, in the same sense that scientific hypotheses are
provisional (cf. in the scientific method). As we acquire new information, our percepts
shift. Abraham Pais' biography refers to the 'esemplastic' nature of imagination. In the
case of visual perception, some people can actually see the percept shift in their mind's
eye. Others who are not picture thinkers, may not necessarily perceive the 'shape-
shifting' as their world changes. The 'esemplastic' nature has been shown by
experiment: an ambiguous image has multiple interpretations on the perceptual level.
Just as one object can give rise to multiple percepts, so an object may fail to give rise to
any percept at all: if the percept has no grounding in a person's experience, the person
may literally not perceive it.
This confusing ambiguity of perception is exploited in human technologies such as
camouflage, and also in biological mimicry, for example by Peacock butterflies, whose
wings bear eye markings that birds respond to as though they were the eyes of a
dangerous predator.
Cognitive theories of perception assume there is a poverty of stimulus. This (with
reference to perception) is the claim that sensations are, by themselves, unable to
provide a unique description of the world. Sensations require 'enriching', which is the
role of the mental model.
Perception is the process by which we receive and interpret information from the
world around us. The world around us consists of various kinds and levels of
physical energy. Our knowledge of the world comes through our sense organs,
which react to these energies. Certain wavelengths of electromagnetic radiation
stimulate our eyes. Our ears sense certain kinds of mechanical vibrations in the air.
Our noses and tongues are sensitive to certain chemical stimuli. Sense organs in our
skin respond to pressure, temperature changes, and various stimuli related to pain.
Sense organs in our joints, tendons, and muscles are sensitive to body movement
and position.
The sense organs change the various environmental energies into nervous impulses,
which go to the brain. Through the psychological process of perception, the patterns
of energies become known as objects, events, people, and other aspects of the world.
The process of perception does not reveal objects and events of the world. We see
light and colour, but there is no light or colour in the electromagnetic waves that
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stimulate the eyes. In the same way, there is no music or noise in the vibrations that
stimulate the ear. The brain organizes and interprets nervous impulses from the eyes
as light and colour, and impulses from the ears as sound. Together, the sense organs
and the brain transform physical energy from environmental stimuli into
information about the events around us.
Factors affecting perception:
Various factors influence what and how we perceive. Our perceptions are influenced
by the ways our bodies are structured to receive and process stimuli from the
environment. Our perceptions also reflect our emotions, needs, expectations, and
learning.
Receptors. Each sensory system, such as vision, hearing, or touch, has its own
specialized body parts. These parts are called receptors, and they change energies
from the environment into nervous impulses. The human eye, for example, has two
major kinds of receptors in the retina (the light-sensitive part of the eye). These
receptors are called rods and cones. The rods respond to the intensity of light, but
not to different frequencies of light (different colours). The cones do respond to
different frequencies of light, and are called colour receptors. The rods allow us to
see in dim light, and the cones enable us to see colours and sharp detail in bright
light. Thus, the particular ways that receptors are structured and function help
determine the perceptual effects related to them.
The brain. Certain physical and functional features of the brain also determine some
aspects of perception. The part of the brain that serves vision has different kinds of
cells that respond only under certain conditions of stimulation. Some of these cells
respond only when a light goes off. Others respond when a light comes on, but they
stop responding if the light stays on. Such cells also are arranged in special ways in
the brain, and this fact is related to how we perceive. For example, some cells are
arranged in columns or in clusters. Such arrangements are related to how we
perceive edges and forms. Experiments suggest that some cells in the brain allow us
to perceive movement. Thus, the structure of the brain is an important element in
perception.
Learning, emotion, and motivation: Much evidence points to the conclusion that
early experience, learning, emotion, and motivation are important in defining what
and how we perceive. Part of this accumulating evidence comes from experiments
that compare how people in different cultures perceive things. The perception of
such things as form, colour, pain, and touch may differ from culture to culture,
depending on habits and customs, and training of children.
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A simple example of how learning can affect perception is provided by reading the
phrases inside the two triangles in the illustration on the next page. Did you fail to
see the duplicate word in each phrase? Most people do, and some continue to do so
even with many repeated readings. In learning to perceive words and sentences, we
learn not to perceive each letter and word separately. Instead, we become able to
scan the overall pattern and "fill in" the remainder. A poor reader is more likely than
a good reader to see the duplicate word in each phrase.
Some illusions are related to learning and past experience. An illusion is not a false
perception, as many people believe, but one that is inconsistent with another
perception. Since perception does not literally reveal the environment, no sensory
system is closer to some absolute truth than any other. We tend to check visual
illusions against touch, but touch can involve illusory effects, too. Look at the two
triangular patches of grey containing black and white detail in the illustration on this
page. If you see the patches as being different shades of grey, you are experiencing
an illusion. The patches are the same shade of grey.
Emotions and motivation can have an important effect on perception. Sometimes a
severe emotional disturbance can prevent perception completely, as when emotional
shock causes individuals to lose their hearing temporarily. We are more likely to
perceive those aspects of our environment that are related to our motives. For
example, motivation can affect the perceived characteristics of objects. To hungry
people, food may appear larger or more colourful than usual.
Types of perception:
Perception has three levels of complexity: (1) detection, (2) recognition, and (3)
discrimination. Detection refers to whether people can sense that they are being
stimulated by some form of energy. For example, a light may be so dim they can
barely detect its presence. Recognition means being able to identify as well as detect
a particular pattern of stimulation. Discrimination means being able to perceive one
pattern of stimulation as different from another. For example, a person may hear
slight differences between two similar musical tones.
The field of study that deals with levels of perception is called psychophysics.
Experimental psychologists investigate the relationships between the physical
properties of stimulus patterns and the perceived effects of the stimuli. For example,
they may study the relationship between sound frequency and the perceived pitch of
sound.
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Principles of perception:
There are a number of general principles that help us understand the process of
perception. One of the most important is the principle of closure. It tells us that we
have the general tendency to perceive things as complete and unified. We tend to
"fill in" parts that are missing, or parts that conform to an overall impression.
The principle of constancy states that despite changes that occur in stimulation, we
have a strong tendency to perceive objects as constant in size, shape, colour, and
other qualities. For example, an orange will be perceived with its characteristic
colour under different kinds of light.
The opposite of the principle of constancy is also important. Sometimes an object or
pattern of stimulation will remain constant, but the perceived effect will vary. Look
at the grey and black cubes in the illustration on this page. At one moment you will
see three complete cubes, and at another you may see five.
Another important principle relates to perceptual context. The perception of an
object or event depends in part on the context (surrounding conditions). Look at the
two rectangles containing the words World Book in the illustration on this page. The
words are printed with the same ink. Do they look the same? Background intensity
and colour may affect the colour and intensity of elements upon it. To most people,
grey surrounded by black appears brighter and somewhat larger. This effect is called
visual induction. Notice, too, that the effect is opposite to that observed with the two
grey triangles with black and white detail. In this case, the grey with black detail
appears darker rather than brighter.
We can categorise perception as internal or external.
Internal perception (proprioception) tells us what's going on in our bodies. We
can sense where our limbs are, whether we're sitting or standing; we can also
sense whether we are hungry, or tired, and so forth.
External or Sensory perception (exteroception), tells us about the world outside
our bodies. Using our senses of sight, hearing, touch, smell, and taste, we
discover colors, sounds, textures, etc. of the world at large.
The philosophy of perception is mainly concerned with exteroception. When
philosophers use the word perception they usually mean exteroception, and the word is
used in that sense everywhere below.
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The most common theory of perception is naïve realism in which people believe that
what they perceive is things in themselves. Children develop this theory as a working
hypothesis of how to deal with the world. Many people who have not studied biology
carry this theory into adult life and regard their perception to be the world itself rather
than a pattern that overlays the form of the world. Thomas Reid took this theory a step
further, he realised that sensation was composed of a set of data transfers but declared
that these were in some way transparent so that there is a direct connection between
perception and the world. This idea is called Direct Realism. The succession of data
transfers that are involved in perception suggests that somewhere in the brain there is a
final set of activity, called sense data, that is the substrate of the percept. Perception
would then be some form of brain activity and somehow the brain would be able to
perceive itself. This concept is known as indirect realism. In Indirect Realism it is held
that we can only be aware of external objects by being aware of representations of
objects.
Direct realism and indirect realism are known as 'realist' theories of perception because
they hold that there is a world external to the mind. Direct realism holds that the
representation of an object is located next to, or is even part of, the actual physical object
whereas indirect realism holds that the representation of an object is brain activity.
whereas direct realism argues either that these experiences do not occur or avoids the
problem by defining perception as only those experiences that are consistent with direct
realism.
Apart from the realist theories of perception there are also anti-realist theories. There
are two varieties of anti-realism: Idealism and Skepticism. Idealism holds that we can
only be aware of mental things whereas skepticism holds that because we never
perceive external objects directly we can never know for certain whether they exist. The
philosophy of perception is very closely related to a branch of philosophy known as
epistemology, the theory of knowledge, and many of the ideas presented above are also
discussed under this heading.
Cognitive Processing and Epiphenomenalism
Perception is sometimes referred to as a cognitive process in which information
processing is used to transfer information from the world into the brain and mind
where it is further processed and related to other information. Some philosophers and
psychologists propose that this processing gives rise to particular mental states
(cognitivism) whilst others envisage a direct path back into the external world in the
form of action (radical behaviourism).
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Perceptual Space
Another aspect of perception that is common to both realists and anti-realists is the idea
of mental or perceptual space. David Hume considers this at some length and concludes
that things appear extended because they have the attributes of colour and solidity. A
popular modern philosophical view is that the brain cannot contain images so our sense
of space must be due to the actual space occupied by physical things.
Visual perception is one of the senses, consisting of the ability to detect light and
interpret (see) it as the perception known as sight or naked eye vision. Vision has a
specific sensory system.
The eye is the light-sensitive organ that is the first component of the sensory system.
The eye's retina performs the first stages of visual perception processing, with the
remaining stages of visual perception occurring in the optic nerve and the visual cortex
of the brain.
Types of visual perception
Color vision
Black and white vision
Motion perception
When a person glimpses the face of a famous actor, sniffs a favorite food or hears the
voice of a friend, recognition is instant. Within a fraction of a second after the eyes,
nose, ears, tongue or skin is stimulated, one knows the object is familiar and whether it
is desirable or dangerous.
The study of consumers helps firms and organizations improve their marketing
strategies by understanding issues such as how
The psychology of how consumers think, feel, reason, and select between
different alternatives (e.g., brands, products);
The the psychology of how the consumer is influenced by his or her environment
(e.g., culture, family, signs, media);
The behavior of consumers while shopping or making other marketing decisions;
Limitations in consumer knowledge or information processing abilities influence
decisions and marketing outcome;
How consumer motivation and decision strategies differ between products that
differ in their level of importance or interest that they entail for the consumer;
and
How marketers can adapt and improve their marketing campaigns and
marketing strategies to more effectively reach the consumer.
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Understanding these issues helps us adapt our strategies by taking the consumer into
consideration. For example, by understanding that a number of different messages
compete for our potential customers’ attention, we learn that to be effective,
advertisements must usually be repeated extensively. We also learn that consumers will
sometimes be persuaded more by logical arguments, but at other times will be
persuaded more by emotional or symbolic appeals. By understanding the consumer, we
will be able to make a more informed decision as to which strategy to employ.
One "official" definition of consumer behavior is "The study of individuals, groups, or
organizations and the processes they use to select, secure, use, and dispose of products,
services, experiences, or ideas to satisfy needs and the impacts that these processes have
on the consumer and society." Although it is not necessary to memorize this definition,
it brings up some useful points:
Behavior occurs either for the individual, or in the context of a group (e.g.,
friends influence what kinds of clothes a person wears) or an organization
(people on the job make decisions as to which products the firm should use).
Consumer behavior involves the use and disposal of products as well as the
study of how they are purchased. Product use is often of great interest to the
marketer, because this may influence how a product is best positioned or how
we can encourage increased consumption. Since many environmental problems
result from product disposal (e.g., motor oil being sent into sewage systems to
save the recycling fee, or garbage piling up at landfills) this is also an area of
interest.
Consumer behavior involves services and ideas as well as tangible products.
The impact of consumer behavior on society is also of relevance. For example,
aggressive marketing of high fat foods, or aggressive marketing of easy credit,
may have serious repercussions for the national health and economy.
There are four main applications of consumer behavior:
The most obvious is for marketing strategy—i.e., for making better marketing
campaigns. For example, by understanding that consumers are more receptive to
food advertising when they are hungry, we learn to schedule snack
advertisements late in the afternoon. By understanding that new products are
usually initially adopted by a few consumers and only spread later, and then
only gradually, to the rest of the population, we learn that (1) companies that
introduce new products must be well financed so that they can stay afloat until
their products become a commercial success and (2) it is important to please
initial customers, since they will in turn influence many subsequent customers’
brand choices.
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A second application is public policy. In the 1980s, Accutane, a near miracle cure
for acne, was introduced. Unfortunately, Accutane resulted in severe birth
defects if taken by pregnant women. Although physicians were instructed to
warn their female patients of this, a number still became pregnant while taking
the drug. To get consumers’ attention, the Federal Drug Administration (FDA)
took the step of requiring that very graphic pictures of deformed babies be
shown on the medicine containers.
Social marketing involves getting ideas across to consumers rather than selling
something. Marty Fishbein, a marketing professor, went on sabbatical to work
for the Centers for Disease Control trying to reduce the incidence of transmission
of diseases through illegal drug use. The best solution, obviously, would be if we
could get illegal drug users to stop. This, however, was deemed to be infeasible.
It was also determined that the practice of sharing needles was too ingrained in
the drug culture to be stopped. As a result, using knowledge of consumer
attitudes, Dr. Fishbein created a campaign that encouraged the cleaning of
needles in bleach before sharing them, a goal that was believed to be more
realistic.
As a final benefit, studying consumer behavior should make us better
consumers. Common sense suggests, for example, that if you buy a 64 liquid
ounce bottle of laundry detergent, you should pay less per ounce than if you
bought two 32 ounce bottles. In practice, however, you often pay a size premium
by buying the larger quantity. In other words, in this case, knowing this fact will
sensitize you to the need to check the unit cost labels to determine if you are
really getting a bargain.
Background. Our perception is an approximation of reality. Our brain attempts to make
sense out of the stimuli to which we are exposed. This works well, for example, when
we "see" a friend three hundred feet away at his or her correct height; however, our
perception is sometimes "off"—for example, certain shapes of ice cream containers look
like they contain more than rectangular ones with the same volume.
Factors in perception. Several sequential factors influence our perception. Exposure
involves the extent to which we encounter a stimulus. For example, we are exposed to
numerous commercial messages while driving on the freeway: bill boards, radio
advertisements, bumper-stickers on cars, and signs and banners placed at shopping
malls that we pass. Most of this exposure is random—we don’t plan to seek it out.
However, if we are shopping for a car, we may deliberately seek out advertisements
and "tune in" when dealer advertisements come on the radio.
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Exposure is not enough to significantly impact the individual—at least not based on a
single trial (certain advertisements, or commercial exposures such as the "Swoosh" logo,
are based on extensive repetition rather than much conscious attention). In order for
stimuli to be consciously processed, attention is needed. Attention is actually a matter of
degree—our attention may be quite high when we read directions for getting an income
tax refund, but low when commercials come on during a television program. Note,
however, that even when attention is low, it may be instantly escalated—for example, if
an advertisement for a product in which we are interested comes on.
Interpretation involves making sense out of the stimulus. For example, when we see a
red can, we may categorize it as a Coke.
Weber’s Law suggests that consumers’ ability to detect changes in stimulus intensity
appear to be strongly related to the intensity of that stimulus to begin with. That is, if
you hold an object weighing one pound in your hand, you are likely to notice it when
that weight is doubled to two pounds. However, if you are holding twenty pounds, you
are unlikely to detect the addition of one pound—a change that you easily detected
when the initial weight was one pound. You may be able to eliminate one ounce from a
ten ounce container, but you cannot as easily get away with reducing a three ounce
container to two (instead, you must accomplish that gradually—e.g., 3.0 --> 2.7 --> 2.5 --
> 2.3 --> 2.15 –> 2.00).
Several factors influence the extent to which stimuli will be noticed. One obvious issue
is relevance. Consumers, when they have a choice, are also more likely to attend to
pleasant stimuli (but when the consumer can’t escape, very unpleasant stimuli are also
likely to get attention—thus, many very irritating advertisements are remarkably
effective).
Surprising stimuli are likely to get more attention—survival instinct requires us to give
more attention to something unknown that may require action. A greater contrast
(difference between the stimulus and its surroundings) as well as greater prominence
(e.g., greater size, center placement) also tend to increase likelihood of processing.
Perspectives on Consumer Behavior and Motivation.
The Hard Core Behavioral perspective is based on learning theories such as
operant and classical conditioning. These theories suggest that consumers must
learn from their own experiences--i.e., in order to avoid getting sick from
overeating, a consumer must experience the stomach and other ailments
resulting from gluttony rather than merely observing other people who overeat
and get sick. This suggests, then, that it is important to reward good behavior
(e.g., buying our brand) to the extent possible. Money spent on advertising is
seen as less useful. Hard core behaviorists tend to look at observable behavior
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(e.g., buying our brand or buying another) rather than trying to find out what is
going on inside the heads of consumers--i.e., hard core behaviorists do not like to
mess with "mushy" things like attitudes.
The Social Learning Perspective, in contrast, allows for vicarious learning--i.e.,
learning obtained by watching others getting good or bad consequences for
behavior. The models that may be observed and imitated include peers and family
members as well as relevant others that may be observed in advertising. From
our study of social influences, we know that certain people are more likely to be
imitated than others--e.g., those that are more similar to ourselves based on
relevant factors such as age, social status, or ethnic group. Consider, for example,
the poor man who is rejected by women because of his dandruff until he gets
"with it" and uses Head ‘n’ Shoulders shampoo. Other dandruff sufferers are
likely to learn from the model’s experience. Generally, observations are made of
overt behavior, but some room is made for individual reasoning in learning from
others. This perspective is clearly more realistic than that of the "Hard Core"
view, but it should be noted that the strength of learning tends to be greater for
that gained from own experience.
The Cognitive approach emphasizes consumer thinking rather than mere
behavior--we will encounter this to a great extent when we study decision
making and attitudes. Here, the emphasis is on how people reason themselves to
the consequences of their behavior. Note that it is often somewhat more difficult
to attempt to "get into" a consumer’s head than it is to merely observe his or her
behavior, and what we "observe" is somewhat more subjective. Note also that a
wealth of different factors influence people’s thinking, and some expectations
and assumptions that we hold tend to be culturally influenced (e.g., an American
assumes that hard work will tend to lead to a promotion, while members of
certain other cultures believe that personal relationships, and perhaps even luck,
tend to be more important).
The Biological approach suggests that most behavior is determined by genetics or
other biological bases. By this perspective, it is suggested that consumers eat the
foods they eat in large part because the body craves these foods. Note that
although craving for fatty foods seems quite maladaptive in today’s society, it
could have been very adaptive earlier in human history where food was scarce
and obtaining as many calories as possible helped ensure survival. Clearly, this
perspective is very misleading when one takes it as the only explanation of
behavior--for example, people in different cultures learn to enjoy various kinds
of foods. The main implication of biological determinism is that the marketer must
adapt--for example, food advertisements are more likely to be effective when
people are hungry, and thus they might better be run in the late afternoon rather
than in the late morning.
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The Rational Expectations perspective is based on an economic way of looking at
the World. Economists assume that people think rationally and have perfect
information, even though they know very well that these assumptions are often
unrealistic. However, despite the unrealistic assumptions made, economists
often make relatively accurate predictions of human behavior. (The Cognitive
perspective, however, is able to identify certain significant exceptions to rational
behavior, however).
The Psychoanalytic perspective is based on the work of historical psychologists such as
Sigmund Freud who suggest that (1) much behavior has a biological basis which is (2)
often sexual in nature, and (3) that early experiences in childhood will have a profound,
but unconscious effect on later life--e.g., people who are rejected in an early, "oral" phase
of development may become "oral retentive" and end up as wine connoisseurs later in
life. Because of societal injunctions against explicit discussion of sexuality in Western
society at Freud’s time [late 1800s to mid 1900s], many objects were thought to take on
seemingly unrelated symbolic meanings--e.g., a tie might become a symbol of a male
reproductive organ. Although modern psychologists certainly recognize that early
experiences may influence later psychological well being, the psychoanalytic view has
largely been discredited today as being much too centered on the issue of sex. However,
this perspective enjoys a great deal of popularity among many advertising executives. It
should be noted that Freudian psychology tends to violate the cherished scientific ideal
of parsimony, where a scientist is expected to propose the simplest theory that will
account for observed phenomena.
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Milk:
Milk is the normal mammary secretion derived from complete milking of healthy milch
animal.
TYPES OF MILK:
1. Mixed milk
2. Standard milk
3. Toned milk
4. Skimmed milk
5. Full cream milk.
Extra shelf life for fluid milk products might not yet be on the consumer radar. But milk
processors and their customers – from traditional retailers to foodservice operators to
emerging channels such as vending – find extra shelf life means extra value.
What is a tetra pack?
It is made up of three materials:
- A layer of cardboard to make the carton rigid
- A layer of plastic to seal the liquid inside
- A layer of aluminium to prevent oxygen and light from reaching the milk.
What is Tetra packed Milk?
It is fresh milk, which has been processed with a technology called UHT (Ultra High
Temperature), hence also known as UHT milk. Notwithstanding popular
misconception, UHT technology does not involve any use of preservatives. The UHT
treatment ensures zero microbial activation, while preserving the maximum flavour,
taste, and nutritional value. The aseptic packaging system protects the product from air
and light and guarantees a long shelf life of 180 days without refrigeration.
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Amul sells a variety of milk in Tetra packs for eg.Amul Gold, which contains 4.5% fat
and is ideal for making sweet dishes and for setting curds. Amul Taaza contains 1.5%
fat and is ideal for tea and coffee whitening and for setting curds. Amul Shakti Toned
milk contains 3% and is ideal multipurpose milk.
We can deduce that unlike fresh milk that comes with standard fat content, milk sold in
tetra packs come in varying fat content thus catering to the different needs and
preferences of the consumer.
Consumer Habits And Practices--
Milk has been an integral part of Indian food for centuries. The per capita availability of
milk in India has grown from 172 gm per person per day in 1972 to 182gm in 1992 and
203 gm in 1998-99.This is expected to increase to 212gms for 1999-00. However a large
part of the population cannot afford milk. At this per capita consumption, it is below
the world average of 285 gm and even less than 220 gm recommended by the
Nutritional Advisory Committee of the Indian Council of Medical Research.
There are regional disparities in production and consumption also. The per capita
availability in the north is 278 gm, west 174 gm, south 148 gm and in the east only 93
gm per person per day. This disparity is due to concentration of milk production in
some pockets and high cost of transportation. Also the output of milk in cereal growing
areas is much higher than elsewhere which can be attributed to abundant availability of
fodder, crop residues, etc which have a high food value for milch animals.
It is estimated that around 20% of the total milk produced in the country is consumed at
producer-household level and remaining is marketed through various cooperatives,
private dairies and vendors. Also of the total produce, which is, more than 50% is
procured by cooperatives and other private dairies.
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While for cooperatives of the total milk procured 60% is consumed in fluid form and
rest is used for manufacturing processed value added dairy products; for private dairies
only 45% is marketed in fluid form and rest is processed into value added dairy
products like ghee, makhan etc.
Still, several consumers in urban areas prefer to buy loose milk from vendors due to the
strong perception that loose milk is fresh. Also, the current level of processing and
packaging capacity limits the availability of packaged milk.
The preferred dairy animal in India is buffalo unlike the majority of the world market,
which is dominated by cow milk. As high as 98% of milk is produced in rural India,
which caters to 72% of the total population, whereas the urban sector with 28%
population consumes 56% of total milk produced. Even in urban India, as high as 83%
of the consumed milk comes from the unorganized traditional sector.
Presently only 12% of the milk market is represented by packaged and branded
pasteurized milk, valued at about Rs. 8,000 crores. Quality of milk sold by unorganized
sector however is inconsistent and so is the price across the season in local areas. Also
these vendors add water and caustic soda, which makes the milk unhygienic.
Market Size And Growth--
Market size for milk (sold in loose/ packaged form) is estimated to be 36mn MT valued
at Rs470bn. The market is currently growing at round 4% pa in volume terms. The milk
surplus states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat,
Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk
products is concentrated in these milk surplus States. The top 6 states viz. Uttar
Pradesh, Punjab, Madhya Pradesh, Rajasthan, Tamil Nadu and Gujarat together
account for 58% of national production.
19
About 75% of milk is consumed at the household level, which is not a part of
commercial dairy industry. Loose milk has a larger market in India as it is perceived to
be fresh by most consumers. In reality however, it poses a higher risk of adulteration
and contamination.
Major Players--
The packaged milk segment is dominated by the dairy cooperatives. Gujarat Co-
operative Milk Marketing Federation (GCMMF) is the largest player. All other local
dairy cooperatives have their local brands (For e.g. Gokul, Warana in Maharashtra,
Saras in Rajasthan, Verka in Punjab, Vijaya in Andhra Pradesh, Aavin in Tamil Nadu,
etc). Other private players include J K Dairy, Heritage Foods, Indiana Dairy, Dairy
Specialties, etc.
Manufacturing Process--
Milk is pasteurized by treating it to high temperature for a short time. The main aim in
treating milk with high temperature is to destroy the disease causing pathogens and to
improve keeping quality.
Separation machine is typically a high-powered centrifuge. The centrifugal force makes
milk fat globules and emerges as cream from the separator bowl. Separation of cream
produces skim milk from which several dairy products are made.
Packaged milk can be divided according to fat content as follows,
Whole (full cream) milk - 6% fatStandardized (toned) milk - 4.5% fatDoubled toned
(low fat) milk - 3% fatAnother category of milk, which has a small market is flavoured
milk.
20
The dairy processing industry’s collective investment in extended shelf life (ESL), ultra
high temperature (UHT) and aseptic packaging technology allows fluid products to
reach the end-user more efficiently while maintaining quality. Product can be shipped
greater distances, and long-life processing helps ensure product integrity, whether milk
is delivered to retailer distribution centers or via the more labor-intensive direct-store
delivery method. Whatever the destination, fluid products processed with innovative
methods can handle more stress during the process than traditionally processed milk.
Packaging Technology--
Milk was initially sold door-to-door by the local milkman. When the dairy co-operatives
initially started marketing branded milk, it was sold in glass bottles sealed with foil.
Over the years, several developments in packaging media have taken place. In the early
80's, plastic pouches replaced the bottles. Plastic pouches made transportation and
storage very convenient, besides reducing costs. Milk packed in plastic pouches/bottles
have a shelf life of just 1-2 days, that too only if refrigerated. In 1996, Tetra Packs were
introduced in India. Tetra Packs are aseptic laminate packs made of aluminum, paper,
board and plastic. Milk stored in tetra packs and treated under Ultra High Temperature
(UHT) technique can be stored for four months without refrigeration. Most of the dairy
co-operatives in Andhra Pradesh, Tamil Nadu, Punjab and Rajasthan sell milk in tetra
packs. However tetra packed milk is costlier by Rs5-7 compared to plastic pouches. In
1999-00 Nestle launched its UHT milk. Amul too relaunched its Amul Taaza brand of
UHT milk. The UHT milk market is expected to grow at a rate of more than 10-12% in
coming years.
Packaging is among the high growth industries in the recent years. It is poised to
maintain its high growth profile. Upgradation, both of functionality and aesthetics,
characterises the recent trends in the industry. Elaborate and more expensive packaging
is penetrating deeper and deeper into marketing of industrial products and even agro-
21
based products, especially food and Dairy products, in some cases, the cost of
packaging matches with the price of the product content.
Depending on how one delimits it, the annual output of the industry exceeds Rs 100 bn,
logging a high growth rate of 25%. The flexible segment records even higher growth
approximating 30%. Advances in the industry are in evidence in several directions:
a) from rigid to flexible packaging, b) from conventional to more sophisticated media, c)
towards new customer orientation, d) developing glossy, attractive packaging, e)
induction of increased functionality (such as product presentation and protection), and
f) from the small to large scale sector.
The technology advances registered by the packaging industry are not merely in terms
of introduction of new materials and their upgradation; these have also covered new
techniques of packaging, which include modified and controlled atmospheric
packaging (CAP and MAP).
The flexible packaging includes paper, plastics (PVC, LDPE, HDPE, BOPP, polyester
and polypropylene), cloth and metal foils, especially of aluminium, besides jute and
HDPE bags for bulk handling. The potential for packaging industry can be seen in the
present low per capita consumption of two base materials, packaging paper and
plastics.
A high degree of potential exists for almost all user segments that are expanding
appreciably: processed foods and dairy products.
Indian packaging industry had been limited primarily to the small and informal sector,
producing the basic materials or semi-finished packages. The number of units exceeds
18,000. The medium and large units now numbering not more than 800 or about 5% of
the total, however, produce some two-thirds of the packaging. A number of larger
producing or marketing enterprises have also developed captive facilities.
22
With the new trend towards flexible packaging coinciding with the economic expansion
at around 6% to 7% and industrial production increasing for some periods at over 10%
per annum, the packaging industry is expanding at a rate of 25% annually. The high
rate is also due to new styles of marketing and of consumer behaviour.
The total value of the flexible packaging industry is placed at Rs 12 bn to Rs 15 bn,
depending upon the delimitation of what constitutes the value of packaging.
Lead players include Paper Products, Sharp Industries, Flex Industries, India Foils,
Ampro Packaging, Garware Polyesters, Polyplex Industries, Gujarat Propack, Cosmo
Films, Curimco Birla, Ester Industries, Paharpur, Essel.
The National Institute of Packaging is endeavouring to upgrade and promote
environment friendly products and technologies.
The sales turnover of the company has been expanding rapidly from Rs 1172 mn in 1994
to Rs 1301 mn in 1995 and Rs 1618 mn in 1996. ITW Inc feels that by the year 2000, ITW
India is to become a Rs 10 bn company with a product portfolio expanded many times
over. The unit at Silvassa went on stream in 1995 with an investment of around Rs 60
mn. The Haldia unit is under construction. The company’s steel strapping capacity is
around 15,000 tpa.
Tetra Pak, which holds a 20% stake in Hindustan Packaging, was to pay Rs 600 mn to
buy the remaining 80% stake. Hindustan Packaging, promoted by National Dairy
Development Board (NDDB), had earlier resisted the entry of $ 8 bn Tetra Pak of
Sweden. Tetra Pak India is promoted jointly by the Swedish parent and Alfa-Laval
India. Hindustan Packaging controls nearly 70% of the domestic market in brick carton
packaging. Whereas the former has a capacity to produce one billion brick cartons at its
Gujarat unit, Tetra Pak’s plant in Maharashtra has a capacity to produce two billion
brick cartons.
23
Why tetra pack?
Tetra Pak has considerable processing and packaging expertise in the food sector. The
company has expanded its business to include much more than packaging of liquid
food products. Today, ice cream, cheese, dry foods, fruits, vegetables and pet food are
examples of what can be packaged in Tetra Pak packages
by developing packaging, which preserves the nutritional value and taste of products,
the distribution of these food products to the consumer has been greatly facilitated.
Tetra Pak packaging is easy to distribute and handle. The range of processing
equipment offered includes separators, heat exchangers, homogenisers, evaporators,
aseptic processing systems and flow equipment.
Tetra Pak is a systems supplier. We supply complete integrated processing, packaging
and distribution lines as well as stand-alone equipment, carefully tested to ensure
optimal function. This means that you will have a short start-up time and get problem-
free production right from the start.
Evolution of Tetra pack:
Tetra Pak was founded on a remarkably simple idea: that a package should save more
than it costs. This is still valid. We make food available to the world in lightweight
packages that are safe, hygienic and made by clean industrial processes.
This means we are constantly reducing the environmental impact of our operations,
products and packages. For example, our aseptic cartons are 20 per cent lighter today
than they were 20 years ago. Our packages meet the requirements of all four waste
management options: source reduction, recycling, energy-from-waste-incineration, and
landfills.
24
Amul aims at trebling milk exports this year:
Pursuing an ambitious target to market Amul milk in 50 cities across the country, the
Gujarat Cooperative Milk Marketing Federation (GCMMF) is also striving to enhance
its presence in the overseas milk market. From Rs 50 crore last year, GCMMF is all set to
export milk worth close to Rs 150 crore this year. All the exports are being made under
the Amul brand.
"The WTO regime has unleashed unprecedented export opportunities for the dairy
sector of the country", according to Mr R.S. Sodhi, General Manager (Sales) of GCMMF.
"Our milk is recognised as of good quality and is produced at a cheaper cost. We had a
problem relating to procurement. Accordingly, we are trying to enhance that by
introducing remunerative milk farming practices," he told Business Line.
Having increased the average daily procurement by 20 per cent to 78 lakh litre this year,
the federation is now exporting variants of Amul milk to West Asia, the US, Africa and
neighbouring countries, including Bangladesh and Sri Lanka.
In the domestic market, the federation had already launched Amul milk in Delhi,
Mumbai, Pune, Nagpur and Kolkata. Plans were afoot to roll out the same in Kanpur,
Lucknow, Chennai and Hyderabad by the end of this year.
Claiming to have secured a 15 and 20 per cent market share in Mumbai and Delhi
respectively, sale of Amul milk has already gone up by over 30 per cent, to 29 lakh litres
per day.
Of this volume, roughly 10 lakh litres are sold outside Gujarat. "Our aim is to establish
Amul as a national brand as soon as possible", Mr Sodhi said.
25
Doctors also recommend tetra packed milk—
A glass of cow's milk packs in 130 mg of calcium. A healthy adult needs about 1000 mg
of calcium per day. So if you were to rely heavily on milk, you'd have to drink close to 2
litres everyday!
While most doctors are not discounting milk's benefits, they warn that natural milk
sugar called lactose is difficult to digest, especially by Asians who tend to be genetically
lactose intolerant. Though milk products like curd, paneer and cheese are better
options, getting protein, calcium and other nutrients from foods like veggies, nuts and
fruit is very important.
Where you buy your milk from can also make a difference. Your milkman may show
up at your door step armed with milk that looks healthy but loose milk that's not
pasteurised could be contaminated if it’s not cooled appropriately. Dairy packaged milk
is pasteurised and is usually delivered within 2 or 3 days but it still may not be
completely safe.
Says Professor Manubhai Shah, Managing Trustee of Consumer Education & Research
Centre, “Of the 30 brands we tested only two met standards, all other brands had excess
bacterial contamination, pesticide residue and less fat content than promised.”
So a newer option is now stocking store shelves: tetrapak milk. You don't need to boil it
before drinking because this milk is treated in a way that goes beyond basic
pasteurisation. But expect to cough up about Rs. 5 more per litre.
The fact regarding quality of the milk supplied by the milkman or the packaged milk
could be less known among most of the consumers. It would require us to study
whether the buyer is aware of the benefits of tetra packed milk, or does the price factor
play a major role in his decision making process.
26
Reference:
www.goodlifeshow.com
www.dairyweek.com
www.hindustanstudies.com
Chandigarh Tribune, Friday, Nov 26 2004
27
METHODOLOGY—
Research design:
The study is descriptive in nature. It would analyze consumer attitude and preference
with respect to tetra packed milk. If the buyers prefer tetra packed milk, then the
attributes will be noted; whereas if consumers don’t prefer it then the reasons for the
same would be analyzed. The research would enable to ascertain relationship between
various factors and the milk buying process.
Sampling design:
Define Target Population:
The target population is defined so that the proper source from which the data have to
be collected can be identified. Target population is the specific complete group relevant
to the research project. For our study, the target population would belong to categories
divided on basis of income and profession.
Sample frame:
Sample frame is the list of elements from which the sample may be drawn. Here the
sample frame could be derived from list of consumers in a telephone directory,
customer databases etc.
Sampling method:
Stratified sampling method would be used for this project.
Stratified sampling is commonly used probability method that is superior to random
sampling because it reduces sampling error. A stratum is a subset of the population that
shares at least one common characteristic. Random sampling is then used to select a
28
sufficient number of subjects from each stratum. "Sufficient" refers to a sample size large
enough to be reasonably confident that the stratum represents the population.
We have selected the strata on the basis of existing information with respect to income
level and occupation.
Sample size estimation:
The sample size can be derived by using the following formula:
n = p (1-p) (Z/E)2
Where, n= sample size
p = probability of success
1-p= probability of failure
Z = confidence level in standard error units
E = maximum allowance for error
The sample size for our research project would be 100.
Distribution of Sample Population according to the Strata
Mira Road Andheri Borivali Total
Location 30 40 30 100
1 lacs - 1 lacs - 1 lacs -
Income < 1 lacs 3 lacs > 3 lacs < 1 lacs 3 lacs > 3 lacs < 1 lacs 3 lacs > 3 lacs
Profession
Student 5 1 - 4 1 1 4 1 - 17
Housewife 1 3 1 3 5 2 2 3 1 21
Professional 2 4 2 3 4 4 3 5 2 29
Employed 6 5 - 5 5 3 5 4 - 33
Total 14 13 3 15 15 10 14 13 3 100
29
Data Collection:
Primary data--
Data was collected mainly through a questionnaire. 100 respondents were approached
for filling in the same.
Secondary data—
The relevant secondary data will be gathered by browsing through authenticated
websites, magazines, journals, newspapers etc.
Data analysis:
The data processing will begin with the editing and coding of data gathered from
secondary and primary sources.
The relevant data will then be tabulated and studied using statistical techniques.
Some of the techniques that will be used are Chi square testing and Hypotheses
testing.
Limitations:
Cost constraint
Shortage of time
Respondents were not always receptive
30
CONCLUSION
Findings—
Table No. 1: Kind of milk preferred by the respondents
Type of milk Frequency
Dairy milk 57
Packed milk 31
Tetrapack milk 12
Total 100
Kind of milk preferred
12%
Dairy milk
Packed milk
31% 57%
Tetrapack milk
According to the analysis, most of the consumers (i.e.) about 57% prefer Dairy’s milk.
While, 31% prefer packed milk and only 12% go for Tetra packed milk. The pie chart
clearly shows that a majority still prefers milk from the Dairy, and a very little
percentage prefers Tetra packed milk.
31
Table No 2: Awareness of Tetra packed Milk
Response Frequency
No 18
Yes 82
Total 100
Awareness of Tetrapack milk
18%
No
Yes
82%
From the above data, it is clearly stated that around 82% of consumers are aware of the
Tetra packed milk, while only 18% are unaware of Tetra packed milk.
32
Table 3: Source of information regarding Tetrapack Milk
Source Frequency Percentage
Newspapers 11 15%
Outdoor ads 5 7%
Radio 1 1%
Sales promotion 3 4%
TV 34 48%
TV & Newspapers 11 15%
TV & Sales Promotion 3 4%
TV & Word of mouth 3 4%
Total 71 100%
How have you heard of Tetrapack
4% 4% Milk?
16%
Newspapers
Outdoor ads
15%
7% Radio
1% Sales promotion
TV
4%
TV & Newspapers
TV & Sales
Promotion
TV & Word of mouth
49%
From the above tabulated data, it is clearly shown that most of the consumers have
heard about Tetra packed milk from Television advertisements (i.e.) around 49% of
respondents. While, the second highest means of information regarding Tetra packed
milk was newspapers (i.e.) 16%.
33
Table No.4: Tetra pack Milk Brand preference---
Brand Frequency Percentage
Amul 38 38%
Nestle 24 24%
Vijaya 2 2%
None 36 36%
Total 100 100%
Brand of tetrapack Milk preferred
36% Amul
38%
Nestle
Vijaya
None
2%
24%
According to the analysis, 38% of consumers prefer Amul’s Tetra packed milk. And,
24% favor Nestle as a tetra packed milk brand. 36% of respondents did not prefer Tetra
packed milk. This clearly shows that Amul is the most favoured brand.
34
Table No. 5: Attributes of Tetra packed Milk rated on a scale of 1 to 5
Attributes Rating Weighted total weighted %
1 2 3 4 5
Price 22 13 13 13 21 248 20
Packaging 22 27 13 15 5 292 24
Shelf Life 11 19 19 8 25 229 19
Quality 20 19 18 22 3 277 22
Taste 7 4 19 24 28 184 15
Weight alloted 5 4 3 2 1
TOTAL 1230 100
ATTRIBUTES OF TETRAPACKED MILK
15% 20%
Price
Packaging
Shelf Life
22% Quality
24% Taste
19%
The most preferred attribute of Tetra packed milk by the consumers is the Packaging.
(i.e.) Around 24%. The quality of Tetra packed milk is the next best preferred feature
(i.e.) 22%. While, only 15% preference have been given for taste of the milk.
35
Table No. 6 : Most appealing features of Tetra packed Milk
Features Frequency
Packaging 19
Shelf life 11
Quality 11
Hygienic 7
Purity 6
Taste 6
Convenience 5
Freshness 5
Most favoured features of Tetrapack milk
20
18
16
14
Frequency
12
10 Frequency
8
6
4
2
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Features
According to the respondents, the most favoured features were packaging, shelf life and
quality.
36
Table No. 7: Willingness to purchase Tetra pack Milk
Response Frequency
Yes 64
No 36
Total 100
Willingness to buy tetrapack milk
36%
Yes
No
64%
As the above data suggests, majority of the respondents (i.e.) about 64% of them have
the willingness to purchase Tetra packed milk.
37
Table No. 7a: Reasons for not preferring Tetra pack Milk
Reasons Frequency
Prefer fresh milk 24
No awareness 6
Expensive 2
Less availability 2
Reasons Frequency
Other reasons mentioned were it seems artificial, and smells strange
Reasons for not preferring Tetrapack milk
30
25
20
Frequency
15
10
5
0
Prefer fresh milk No awareness Expensive Less availability
Reasons given by respondents
From the analysis, it is understood that people don’t prefer Tetra packed milk mainly
because consumers prefer fresh milk. While other reasons include, less availability of
the product and cost of the Tetra packed milk.
38
Table No. 7b: Most frequent reasons for preferring to purchase Tetra pack milk
Preferred features Frequency
Brand Name 30
Quality 11
Taste 7
Packaging 3
shelf life 3
Purity 3
Preferred features for Tetrapack milk
35 30
30
25
Frequency
20
15 11
10 7
5 3 3 3
0
Brand Quality Taste Packaging shelf life Purity
Name
Features
Most consumers go according to the Brand name of Tetra packed milk. While, others
get influenced by the quality, taste and packaging of Tetra packed milk.
39
Table No. 9: Actual and expected frequency for hypothesis testing by chi square
Occupation Actual frequency Total Expected Frequency
Tetra pack Dairy Packed Tetra pack Dairy Packed
Milk Milk Milk Milk Milk Milk
Student 0 10 7 17 2.04 9.69 5.27
Professional 5 14 10 29 3.48 16.53 8.99
Salaried 6 18 9 33 3.96 18.81 10.23
Housewife 1 15 5 21 2.52 11.97 6.51
Total 12 57 31 100
We have two variables and we need to find out whether these two variables are
associated with each other, the χ2 test of independence is the appropriate technique to
use.
The cross tabulation is called a contingency table containing the frequency data
corresponding to the variable in the row and column.
H0: Null hypothesis- Occupation of consumer does not affect the preference for kinds of
milk
H1: Alternate hypothesis- Occupation of consumer affects the preference for kinds of
milk.
We have taken the level of significance of 5%
Computing χ2 = Σ [ (O – E) ]2
E
We get the calculated value of χ2 = 3.79
The critical value of χ2 is 12.59
where the level of significance is 5%
degree of freedom =(r-1)(c-1) =(4-1)(3-1) =6
Since the calculated value of χ2 is lesser than the critical value of χ2 , we accept the null
hypotheses. The conclusion is that the preference for type of milk and occupation type
are not associated.
40
Table No. 10: frequency data for hypothesis testing by chi square
Income
Level Actual frequency Total Expected Frequency
Tetrapack Dairy Packed Tetrapack Dairy Packed
Milk Milk Milk Milk Milk Milk
Below 1
lakh 5 25 13 43 5.16 24.51 13.33
1 - 3 lakh 5 24 12 41 4.92 23.37 12.71
above 3
lakh 2 8 6 16 1.92 9.12 4.96
Total 12 57 31 100
To find out whether there is a relation between income levels and kinds of milk.
H0: Null hypothesis- Income level of consumer does not affect the preference for kinds
of milk
H1: Alternate hypothesis- Income level of consumer affects the preference for kinds of
milk.
We have taken the level of significance of 5%
Computing χ2 = Σ [ (O – E) ]2
E
We get the calculated value of χ2 = 0.98
The critical value of χ2 is 3.36
where the level of significance is 5%
degree of freedom =(r-1)(c-1) =(3-1)(3-1) =4
Since the calculated value of χ2 is lesser than the critical value of χ2 , we accept the null
hypotheses. The conclusion is that the preference for type of milk, and the income level
are not associated.
41
Conclusions:
Consumers mainly prefer dairy milk as compared to tetra packed milk.
Awareness of tetra packed milk is high ie 82% of the respondents, while only
64% of them said they would buy tetra packed milk.
The reasons for not preferring tetra packed milk were mainly preference for fresh
milk. The other reasons were lack of awareness, expensiveness and less
availability. This shows that people are still not completely informed about the
features of tetra packed milk. There is still a bit of doubt in the minds of the
consumers with respect to its freshness and purity.
Amul and Nestle are the most favoured brands among the companies providing
tetra packed milk. This shows that brand image plays a very important role in
the buying process.
Consumers are more sensitive towards packaging, quality and price of tetra
packed milk. People look for the brand name and quality when selecting a
particular brand of tetra packed milk.
Demographic factors like occupation and income level do not affect the buying
behaviour with respect to milk. This conclusion was arrived at after hypotheses
testing.
42
Recommendations:
Companies into Tetra packed milk business should increase their advertising,
since it has been observed that the respondents mainly did not prefer tetra
packed milk due to lack of awareness. Large coverage can be attained by
advertising through different mediums. This will also help in increasing
information about the features.
TV advertisements can mainly be used for increasing the awareness, since it has
a major impact on consumers.
Since Radio is one of the upcoming forms of Media, advertisements can be done
on various FM stations to increase the reach of tetra packed milk.
There are wrong notions about tetra packed milk like lack of freshness, could be
artificial etc, due to low exposure of its features. Thus social advertisements
about tetra packed milk should be undertaken massively.
Sales promotions can be done thorough doctors, health clubs etc.
Retailers should be encouraged by providing them some incentives to sell Tetra
packed milk.
Tetra packed milk can be re-positioned as good for the child’s growth and also
beneficial for women and old aged people etc.
More of health related events should be sponsored by tetra packed milk
companies to enhance consumer’s awareness.
43
Tetra packed milk should target more of women customers, since they are the
initiators in household purchases in case of milk.
Rural Markets are still left unexplored. Rural consumers should be educated
about the various advantages of tetra packed milk. Rural consumers are more
price sensitive and thus there should be appropriate pricing of Tetra packed milk.
Rural consumers have the aspiration to become like urban consumers. Thus they
can be targeted by proving the success of tetra packed milk in urban areas.
Focus can also be on improved packaging, wherein it can help change the
consumer’s perception about Tetra packed milk.
44
Summary:
Since the early times Indian consumers have depended on the milkman for their daily
supply of milk. Eventually they began using milk sold in packets by various dairies.
Milk was introduced in Tetra packs to the Indian consumers in the late 90s. Tetra Packs
assured quality of milk in tamper proof packaging, and longer shelf life in non-
refrigerated conditions. The initial reaction of some customers was that tetra packed
milk might not be fresh; while some welcomed the product due to its quality assurance
and storage factors.
This research analyses the perception of consumers towards tetra packed milk. It aims
at studying the Indian consumers perception with respect to tetra packed milk. The
research objectives were to analyse the factors that affected the consumers’ preferences
for buying milk, and to analyse the attributes of tetra packed milk that appeal to the
consumer.
The study would help in learning the behaviour of the buyers. The demographic
influence on the buying behaviour could also be observed.
This research is descriptive in nature. The primary data required for the studies was
collected mainly through a survey. A detailed questionnaire was prepared to cover all
aspects of the milk consumption pattern.
The survey was carried out in Mumbai with a sample size of 100. The sample size was
decided upon taking into consideration factors like time and cost constraints. The
population was divided on the basis of income, occupation and location. The sample
method used was stratified probability sampling.
The collected data was edited and tabulated for better understanding. The technique
used to test the hypotheses was Chi square testing.
Findings:
The graphs indicated that a majority of the consumers still preferred dairy
milk.i.e. 57% of the respondents preferred dairy milk, 31 % preferred packed
milk whereas the remaining 12% preferred tetra packed milk.
Awareness of Tetrapacked Milk was high. 82% respondents were aware of tetra
packed milk.
Television turned out to be the main source of information at 49% followed by
newspapers at 16%. Other sources were advertisements, sales promotion and
word of mouth.
45
A majority of the respondents preferred Amul’s Tetra packed milk (38%) while
preference for Nestle was 24%.
Also among the attributes of tetra packed milk factors like packaging, quality
and shelf life played an important role. 36% of the consumers preferred not to
buy tetra packed milk.
Packaging, quality and price were perceived as the most important attributes of
tetra packed milk at 24%, 22% and 20% respectively. And when compared to
other kinds of milk, the most appealing attributes were its packaging, quality
and shelf life.
A majority of the people was willing to buy tetra packed milk (64%). The reason
for not willing to buy was mainly preference for fresh milk.
On testing the relationship between variables like income level, occupation and
the types of tetra packed milk, it was observed that there was no significant
relation between them. i.e. the income level or occupation did not significantly
affect the consumer’s preference for tetra packed milk.
Conclusion:
36% of the respondents were not willing to buy tetra packed milk. The reasons
for the same were lack of freshness, no awareness and expensiveness. This shows
that people are still not completely informed about the features of tetra packed
milk. There is still a bit of doubt in the minds of the consumers with respect to its
freshness and purity.
Consumers are more sensitive towards the packaging, quality and price of the
tetra packed milk. They also consider the brands while selecting the pack. Hence
brand image also plays a very important role.
After hypotheses testing, it was concluded that demographic factors like
occupation and income level do not affect the buying behaviour with respect to
milk.
46
APPENDIX—
Research Proposal:
Topic: Indian Consumer Perception of Tetra packed Milk
Executive Summary—
This research analyses the perception of consumers towards tetra packed milk. It aims
at studying the Indian consumers perception with respect to tetra packed milk. The
research objectives were to analyse the factors that affected the consumers’ preferences
for buying milk, and to analyse the attributes of tetra packed milk that appeal to the
consumer.
This research is descriptive in nature. The primary data required for the studies was
collected mainly through a survey. A detailed questionnaire was prepared to cover all
aspects of the milk consumption pattern.
The survey was carried out in Mumbai with a sample size of 100. The sample size was
decided upon taking into consideration factors like time and cost constraints. The
population was divided on the basis of income, occupation and location. The sample
method used was stratified probability sampling. The collected data was edited and
tabulated for better understanding. The technique used to test the hypotheses was Chi
square testing.
Problem statement—
A study of Indian consumers’ perception with respect to Tetra packed milk.
Research objectives—
1. To analyse the factors that affect the consumers’ preferences for buying milk.
2. To analyse the attributes of tetra packs that appeal to the customer.
47
Literature review—
Literature review will include reviewing various sources of secondary research.
The sources will cover:
Magazines Newspapers Past research Internet
1. Business 1. Financial Case study
World Express analysis and www.todayonline.
2. Business 2. Economic other researches com
India Times carried out www.google.com
3. Business 3. Times of relating to
Today India similar
4. India Today 4. Indian objectives.
5. Outlook Express
6. The Week
Importance of Study—
Behavior of the buyers with respect to tetra packed milk can be learnt.
Demographic influence on the buying habits of the consumer can be observed.
Benefits of the Study—
This research finding would be very useful to the organizations selling tetra
packed milk. To name some of the major companies in this business are Nestle,
Amul, etc.
These companies would be able to understand the customers’ attitude towards
their product. Using the findings of this research, they would be able to align
themselves to the consumer’s tastes and preferences.
It would also enable them to adopt appropriate promotional strategies, pricing
policies, etc.
Research Design—
The study is descriptive in nature. It would analyze consumer attitude and preference
with respect to tetra packed milk. If the buyers prefer tetra packed milk, then the
attributes will be noted; whereas if consumers don’t prefer it then the reasons for the
same would be analyzed.
48
Data collection—
Primary data:
Data will be collected mainly with the help of a questionnaire .The questionnaire will
help us to obtain a better insight into demographic parameters.
Sample: – The sampling unit of our study will include people of different occupations
and income levels. The research will use probability sampling method i.e. stratified
random sampling wherein the sample would include representative of various
demographic parameters.
The sample size can be derived by using the following formula:
n = p (1-p) (Z/E)2
Where, n= sample size
p = probability of success
1-p= probability of failure
Z = confidence level in standard error units
E = maximum allowance for error
The sample size for our research project would be 100.
Secondary data: The relevant secondary data will be gathered by browsing through
authenticated websites, magazines, journals, newspapers etc.
Data Analysis—
The data processing will begin with the editing and coding of data gathered from
secondary and primary sources.
The relevant data will then be tabulated and studied using statistical techniques.
Some of the techniques that will be used are Chi square testing and Hypotheses
testing .
Nature and form of results—
The results would be in the form of the hypotheses adopted i.e.
H0: The demographic factors of the consumer do not significantly affect the tetra pack
milk preference.
H1: The demographic factors of the consumer significantly affect the tetra pack
milk preference.
49
Qualifications of researchers—
Name of the Researcher Qualification
Megha Kadgaonkar B.Com
Valeda Leitao B.Com
Prachi Mhatre M.Com
Sophia Susan B.Com
Budget, Schedule, Facilities and special resources and project management—
Activity Special Resource / Amount
Sr.No Activity
Dates Facility Required (Rs.)
Submission of research
1 27th Feb Printer 20
proposal
28th Feb– 3rd Library and Internet in
2 Literature review 0
March college
Questionnaire
3rd – 5th
3 preparation Microsoft Word 50
March
(Consumer)
Questionnaire 3rd – 5th
4 Microsoft Word 50
preparation (Retailers) March
6th - 11th
5 Survey and Interview 200
March
12th- 15th
6 Survey Data Tabulation MS Excel, MS Word 0
March
Data Analysis & 16th-19th
7 MS Excel 0
Interpretation March
20th-23rd MS Word, Laser
8 Preparation of report 200
March Printer
9 Final Copy submission 24th March NIL 0
Total 520
50
Preparation of CPM—
Act.
Activity
No
1 Submission of research proposal
2 Literature review
Questionnaire Preparation
3
(Consumer)
Questionnaire preparation
4
( Retailers)
5 Survey and Interview
6 Survey Data Tabulation
7 Data Analysis & Interpretation
8 Preparation of report
9 Final Copy submission
3
7
8
5 6
1 2
9
4
51
25-Feb-05
26-Feb-05
27-Feb-05
28-Feb-05
1-Mar-05
2-Mar-05
3-Mar-05
4-Mar-05
5-Mar-05
6-Mar-05
7-Mar-05
8-Mar-05
9-Mar-05
10-Mar-05
11-Mar-05
Dates
12-Mar-05
13-Mar-05
14-Mar-05
Gantt chart of the Research Process—
15-Mar-05
16-Mar-05
17-Mar-05
18-Mar-05
19-Mar-05
20-Mar-05
Gantt Chart
21-Mar-05
22-Mar-05
23-Mar-05
24-Mar-05
25-Mar-05
Survey
Analysis
Proposal
Lit. review
Submission
Data Tabulation
Questionnaire(retl)
Preparation of rept
Questionnaire(cons.)
Activities
Duration
52
of activity
Covering Letter for the Questionnaire:
From: Date: 6th March 2005
Ms. Prachi Mhatre and group.
Students, Group No. 16
N.L.Dalmia Institute of Management studies and Research
Mira Road,
Mumbai.
Dear Sir/Madam,
We are conducting a survey involving tetra packed milk as our research methodology
project under the direction of Dr. Vijay Wagh, (faculty of N.L.Dalmia Institute of
Management studies and Research).
Presently, we are collecting data from a sample of consumers in Mumbai. We hope you
can assist us by putting down your thoughts about tetra packed milk (i.e.) what do you
think about this product. We earnestly request you to complete the enclosed
questionnaire and oblige.
We will sincerely appreciate your cooperation in providing this information.
Thank you very much.
Sincerely,
Prachi Mhatre
(for Group No. 16 )
NLDIMSR
53
Questionnaire
1. Do you consume milk? (Please the appropriate box)
___ Yes ___ No
2. How many litres of milk does your household consume per day?
(Please the appropriate box)
___ less than 1 litre ___ 1 – 2 litres ___ 2-3 litres
___ more than 3 litres
3. What do you prefer from the following? (Please the appropriate box)
___ Dairy’s milk ___ Packed milk ___ Tetra packed milk
___ Milk powder ___ others (please specify) ____________________
4. Have you heard of Tetra packed Milk? (Please the appropriate box)
___ Yes ___ No
If yes, how?
___ TV ___ Newspapers/ Magazines Outdoor ads
___ Word of mouth ___ Radio ___ Sales promotions
5. What qualities in tetra packed milk appeal to you the most?
________________________________________________________________________
________________________________________________________________________
______________________________________________________
54
6. Would you prefer to buy tetra packed milk? (Please the appropriate box)
i. ___ Yes
Which brands would you buy?
___ Nestle Amul Vijaya Gagan
Paras Saras Verka
Why?
__________________________________________________________________
__________________________________________________________________
_______________________________
ii. ___ No
Why?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
________________________
7. Rate the attributes of tetra packed milk in the order of preference.
___ Price ___ Packaging ___ Shelf life
___ Quality ___ Taste
8. Which age group do you belong to?( Please to choose your category)
___ 15-25 yrs ___ 25-40 yrs ___ 40-60 yrs ___ above 60 yrs
55
9. Which profession do you belong to? (Please the appropriate box)
___ Student ___ Housewife ___ Salaried ___ Professional
___ Others (Please specify) _______________________
10. Which income level do you belong to? (Please to choose your category)
___ Less than 100,000 p.a ___ 100,000 to 300,000 p.a
___ Above 300,000 p.a
56
BIBLIOGRAPHY
www.goodlifeshow.com
www.dairyweek.com
www.hindustanstudies.com
Chandigarh Tribune, Friday, Nov 26 2004
57
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