A STUDY ON CONSUMER SWITCHING BEHAVIOUR

IN FLAVOURED MILK PRODUCTS

A SUMMER INTERNSHIP REPORT

Submitted

by ALEEF

S 1711003

in partial fulfillment of Summer Internship for the award of the

degree of
MASTER OF BUSINESS ADMINISTRATION

THIAGARAJAR SCHOOL OF MANAGEMENT

PAMBAN SWAMY NAGAR,
THIRUPARAKUNDRAM MADURAI, 625005

AUGUST 2018
 ACKNOWLEDGEMENT

I put forth my heart and soul to thank the management of BRITANNIA Ltd Chennai for
providing me with the opportunity to pursue my Summer Internship with them.

I also extend my deep sense of gratitude to Mr. B. Sirajudeen, Territory sales manager of
Britannia Ltd for giving me the opportunity to undertake my Internship program.

I like to express my sincere thanks to Prof N. Venkiteswaran, Director Thiagarajar School

of Management, without his approval I would not have done this project.

I am thankful to Dr. M. Selvalakshmi, Principal, Thiagarajar School of Management, for her

full- fledged support.

I would like to thank Prof. M Balaji, Dean M.B.A, Faculty, Thiagarajar School of
Management, for providing full support and guidance which made me complete this project.

I would also like to thank Dr. Nalini G.S, Faculty, Thiagarajar School of Management, who
helped me throughout the internship period by providing proper guidance.

I sincerely thank Prof. Sherin M John, Faculty guide, Thiagarajar School of Management,
for her encouragement, guidance and valuable ideas which helped me complete this project
successfully.

Finally, I extend my heartfelt thanks to my friends and family members who have been a
source of inspiration and support during my internship.
 ABSTRACT

This study examines the relationship between consumer switching behavior and
sales of flavored milk products. There were two types of research designs
conducted for this study. First an exploratory research was conducted to identify
the brand with the least consumer preference and to frame a problem statement.
Four major factors affecting consumer switching behavior were identified by
referring past literatures i.e. Price, Packaging, Quality and Brand Awareness.

Secondly, a causal research was conducted to measure the magnitude of impact

that each factor has on the outcome variable i.e. switching behavior. The
findings of this causal research conveys that packaging, price and brand
awareness of Britannia’s flavored milk brand has a negative impact on
consumer switching behavior. The quality factor alone has a positive impact
over the outcome variable which can be used effectively for promotion
activities to increase rate of adoption.

Those three factors which has a negative effect over consumer switching
behavior and thus affecting the sales. The strategy of these three factors can be
altered as given in the suggestions chapter of this paper to increase the adoption
rate and in order to increase the sales which is the ultimate problem.
 CONTENTS

CERTIFICATE………………………………………………………………………... i
DECLARATION……………………………………………………………………… ii
ACKNOWLEDGEMENT…………………………………………………………….. iii
ABSTRACT…………………………………………………………………………... iv
CONTENTS…………………………………………………………………………... v
LIST OF TABLES……………………………………………………………………. vii
LIST OF CHARTS…………………………………………………………………… viii
LIST OF ABBREVIATIONS………………………………………………………… ix

CHAPTER 1
INTRODUCTION…………………………………………………………………… (1-2)
1.1 INTODUCTION………………………………………………………………….. 2
CHAPTER 2
LITERATURE REVIEW…………………………………………………………... (3-5)
2.1 LITERATURE REVIEW………………………………………………………… 4
CHAPTER 3
COMPANY PROFILE……………………………………………………………… (6-8)
3.1 INTROCTION……………………………………………………………………. 7
3.2 BISCUITS………………………………………………………………………… 7
3.3 DAIRY PRODUCTS……………………………………………………………... 8
3.4 JOINT VENTURE………………………………………………………………... 8
CHAPTER 4
PROBLEM, SCOPE & MOTIVATION…………………………………………… (9-10)
4.1 PROBLEM STATEMENT……………………………………………………….. 10
4.2 OBJECTIVES…………………………………………………………………….. 10
4.3 SCOPE OF THE STUDY………………………………………………………… 10
4.4 SCOPE OF THE INDUSTRY……………………………………………………. 10
4.5 MOTIVATION…………………………………………………………………… 10
CHAPTER 5
RESEARCH METHEDOLOGY…………………………………………………… (11-14)
5.1 RESEARCH DESIGN……………………………………………………………. 12
5.2 SELECTION OF VARIABLES………………………………………………….. 12
5.3 PERIOD OF STUDY & SOURCE OF DATA…………………………………... 12
5.4 METHOD OF DATA COLLECTION…………………………………………… 13
5.5 HYPOTHESES…………………………………………………………………… 13
5.6 CONCEPTUAL DIAGRAM……………………………………………………... 14
CHAPTER 6
EXPLORATORY RESEARCH……………………………………………………... (15-18)
61 FREQUENCY OF SALES…………………………………………………………. 16
62 CONSUMER BRAND PREFERENCE……………………………………………. 17
CHAPTER 7
RESULTS AND DISCUSSIONS…………………………………………………….. (19-30)
71 PACKAGING………………………………………………………………………. 20
72 SWITCHING BEHAVIOUR DUE TO PACKAGING……………………………. 21
73 PRICE………………………………………………………………………………. 22
74 QUALITY…………………………………………………………………………... 24
75 SWITCHING BEHAVIOUR DUE TO QUALITY………………………………... 26
76 COMPARING PRICE AND QUALITY…............................................................... 27
77 PRIORITY TOWARDS MILKSHAKE…………………………………………… 28
78 BRAND AWARNESS……………………………………………………………... 29
CHAPTER 8
CONCLUSION……………………………………………………………………….. (31-32)
81 CONCLUSION…………………………………………………………………….. 32
CHAPTER 9
SUGGESTIONS TO THE COMPANY…………………………………………….. (33-34)
91 SUGGESTIONS TO THE COMPANY…………………………………………… 34
CHAPTER 10
REFERENCE………………………………………………………………………… (35-36)
101 REFERENCE……………………………………………………………………... 36
 LIST OF TABLES

Page
Table no. Title
no.

6.2 Consumer brand preference 17

7.1 Packaging 20

7.2 Switching behavior due to packaging 21

7.3 Price 22

7.4 Quality 24

7.5 Switching behavior due to quality 26

7.6 Comparing price and quality 27

7.7 Consumer preference towards milkshake 28

7.8 Brand awareness 29

 LIST OF CHARTS

Page
Figure no. Title
no.

5.6 Conceptual diagram 14

6.1 Frequency of sales 16

6.2 Consumer brand preference 17

7.1 Packaging 20

7.2 Switching behavior due to packaging 21

7.3 Price 22

7.4 Quality 24

7.5 Switching behavior due to quality 26

7.6 Comparing price and quality 27

7.7 Consumer preference towards milkshake 28

7.8 Brand awareness 29

 LIST OF ABBREVIATION

ABBREVIATION EXPANSION

BBCo Britannia Biscuit Company

NDDB National Dairy Development Board

GCMMF Gujarat Co-operative Milk Marketing Federation

JV Joint Venture
 CHAPTER 1
INTRODUCTION
 CHAPTER 1

1.1 INTRODUCTION

In today’s highly competitive market, businesses are increasingly getting customer-oriented,

realising the fact that it is necessary to keep their customers with them for a long term to
sustain in the market. Though customer retention very important, it’s equally important to
identify and analyse the factors that causing customer switching behaviour.

Consumer switching behaviour is a phenomena where customers of a product or service leave

their regular brand and switch to a new brand they have encountered due to various reasons
of dissatisfaction.

In the past there has been many attempts made to study about consumer switching behaviour
in many different context. However, many theories has been developed in recent times in
consumer switching behaviour literature. This paper attempts to give a more current view of
existing market phenomena and the causes for such phenomena. It also measures the impact
that each cause has over the consumer switching behaviour of flavoured milk consumers.

In 2016, 43% newly introduced products in the ready to drink category in India were
flavoured milk, according to Mintel research agency’s study. In 2015, Indian consumers of
flavoured milk have drank about 73 million litres of flavoured milk. This may be because of
the fact that The Mintel research agency’s research results has revealed a result that says
that 64% of diary drink consumers of ready to drink flavoured milk products think that
those products are healthier than fresh milk and some think that convenient and hygienic
choice.
 CHAPTER 2
LITERATURE REVIEW
 CHAPTER 2

2.1 LITERATURE REVIEW

“Consumer Switching Costs: A Typology, Antecedents, and Consequences”, Burnham,

Thomas A, (2003)

This study identifies three major switching costs that is experienced by customers while they
switch brands. First one is the waste of effort and time. Second, financial cost involved
while switching. Third one is the emotional and psychological loss due to breaking of bonds.

“A Study on Consumer Switching Behaviour in Cellular Service Provider”, M.Sathish ,

K.Santhosh Kumar , (2011)

This study was conducted in Chennai for the diversified and well mixed population of Tamil
Nadu which would give a normal distribution for their sample of 112. The variables chosen
for this study are consumer satisfaction with their regular brand and consumer demographics.

“An Empirical Study of Consumer Switching from Traditional to Electronic Channels”,

Gupta, Alok, (2004)

The researcher of this paper has studied about the relation between consumer switching
behaviour and purchase intention. This study has a sample size of 337 consumers of
electronic equipment. They also insist that demographics may not be the basis of
segmentation.

“The Service Provider Switching Model (SPSM): A Model of Consumer Switching

Behaviour in the Services Industry”, Harvir S. Bansal, Shirley F. Taylor, (1999)

This is an empirical study done using structural equation with the data collected from
customers using mortgage service of different Canadian financial institutes. Factors
influencing switching behaviour and switching intention were examined and measured for
analysis.

“The contribution of emotional satisfaction to consumer loyalty”, Dean, Alison, Yu, Yi‐
Ting, (2001)
This study explores the role that emotions play in customer satisfaction and then compares
the affective and cognitive elements of satisfaction. Regression analysis is used to analyse the
variables.

“Behavioural responses to customer satisfaction: an empirical study”, Gounaris, Spiros,

Athanassopoulos, Antreas, (2005)

This paper investigates the consequences of customer satisfaction over customer behaviour.
More specifically the author investigates the impact satisfaction of customers over their
behavioiur.

“Measuring Switching Costs and the Determinants of Customer Retention in Internet-

Enabled Businesses”, Pei-Yu Chen, Lorin M. Hitt (2002)

In this paper they have developed and implicated a method for measuring the amount of
impact of the magnitude of each switching cost and brand loyalty of customers using online
service providers.

“Customer Switching Behaviour in Service Industries: An Exploratory Study.

Journal of Marketing”, Keaveney, S. (1995)

This study says that customer dissatisfaction leads to customer switching behaviour and that
damages the market share and profitability of the service industry. But still it remains
unexplored in literature of marketing.

“An empirical study of consumer switching behaviour towards mobile shopping: a

Push–Pull–Mooring model”, Jung-Yu Lai, Sutappa Debarmma, (2008)

The unit of analysis used for this study is the customers who do mobile shopping and
investigates the factors affecting the customer switching behaviour. The findings of this
research conveys that the forces such as trust, privacy and security have a stronger effect on
switching behaviour.

"A Longitudinal Assessment of Consumer Satisfaction/Dissatisfaction", LaBarbera,

Priscilla A., and David Mazursky. (1993)

This is a model proposed to assess the aspects of customer satisfaction and dissatisfaction in
their consecutive purchases. This attempt to determine the repurchase behaviour on the base
of cognitive variables.
 CHAPTER 3
COMPANY PROFILE
 CHAPTER 3

3.1 INTRODUCTION

Britannia Industries Limited is an Indian food-products corporation headquartered

in Bengaluru, Karnataka. It sells its Britannia and Tiger brands of biscuit throughout India.
Britannia has an estimated market share of 38%.

The company's principal activity is the manufacture and sale of biscuits, bread, rusk, cakes
and dairy products.

The company was established in 1892, with an investment of ₹265. Initially, biscuits were
manufactured in a small house in central Kolkata. Later, the enterprise was acquired by the
Gupta brothers mainly Nalin Chandra Gupta, an attorney, and operated under V.K Brothers."
In 1918, C.H. Holmes, an English businessman in Kolkata, was taken on as a partner and The
Britannia Biscuit Company Limited was launched. The Mumbai factory was set up in 1924
and Peek Freans UK, acquired a controlling interest in BBCo. Biscuits were in high demand
during World War II, which gave a boost to the company’s sales. The company name was
changed to the current "Britannia Industries Limited" in 1979. In 1982 the American
company Nabisco Brands, Inc. acquired the parent of Peek Freans and became a major
foreign shareholder.

3.2 BISCUITS

The company's factories have an annual capacity of 433,000 tonnes. The brand names of
biscuits include VitaMarieGold, Tiger, Nutrichoice Junior, Good day, 50 50, Treat, Pure
Magic, Milk Bikis, Good Morning, Bourbon, Thin Arrowroot, Nice, Little Hearts among
others.

Tiger, the mass market brand, realised $150.75 million in sales including exports to countries
including the U.S. and Australia, or 20% of Britannia revenues in 2006.

In a separate dispute from the shareholder matters, the company alleged in 2006 that Danone
had violated its intellectual property rights in the Tiger brand by registering and
using Tiger in several countries without its consent. Britannia claimed the company found out
that Danone had launched the Tiger brand in Indonesia in 1998, and later in Malaysia,
Singapore, Pakistan and Egypt, when it attempted to register the Tiger trademark in some of
these countries in 2004. Whilst it was initially reported in December 2006 that agreement had
been reached. It was reported in September 2007 that a solution remained elusive. In the
meantime since Danone's biscuit business has been taken over by Kraft, the Tiger brand of
biscuits in Malaysia was renamed Kraft Tiger Biscuits in September 2008.

Britannia initiated legal action against Danone in Singapore in September 2007. The dispute
was resolved in 2009 with Britannia securing rights to the Tiger brand worldwide, and
Danone paying Rs220 million to utilise the brand.

3.3 DAIRY PRODUCTS

Dairy products contribute close to 10% to Britannia's revenue. Britannia trades and markets
dairy products, and its dairy portfolio grew to 47% in 2000-01 and by 30% in 2001-02.
Britannia holds an equity stake in Dynamix Dairy and outsources the bulk of its dairy
products from its associate. Its main competitors are Nestlé India, the National Dairy
Development Board (NDDB), and Amul (GCMMF).

3.4 JOINT VENTURE

On 27 October 2001, Britannia announced a joint venture with Fonterra Co-operative

Group of New Zealand, an integrated dairy company from procurement of milk to making
value-added products such as cheese and buttermilk. Britannia planned to source most of the
products from New Zealand, which they would market in India. The joint venture will allow
technology transfer to Britannia. Britannia and New Zealand Dairy each hold 49% of the JV,
and the remaining 2 percent will be held by a strategic investor. Britannia has also tentatively
announced that its dairy business would be transferred and run by the joint venture.

The authorities' approval to the joint venture obliged the company to start manufacturing
facilities of its own. It would not be allowed to trade, except at the wholesale level, thus
pitching it in competition with Danone, which had recently established its own dairy
business.
 CHAPTER 4
PROBLEM, SCOPE & MOTIVATION
 CHAPTER 4

4.1 PROBLEM STATEMENT

Very less sales of Britannia’s new flavoured milk brand – Winkin Cow. Since this is an
already existing market and consumers of flavoured milk are hesitating to switch to Winkin
cow from their regular brands. So, here arises a need to identify and analyse the factors
affecting switching behaviour flavoured milk consumers to help the company realise were to
change their strategy in order to increase the sales of their flavoured milk category products.

4.2 OBJECTIVES

 To identify the major factors influencing consumer switching behaviour on flavoured

milk products
 To find the amount of impact that each variable has on consumer switching behaviour
 To analyse the data and make a suggestion report to the company

4.3 SCOPE OF THE STUDY

This research will help the company understand how product factors are affecting the sales of
their flavoured milk product – Winkin Cow. By referring to this study, company can make
changes in their strategy to boost up the sales.

4.4 SCOPE OF THE INDUSTRY

Flavoured milk industry booms at the past five years in India. According to Mintel research
agency’s study consumers of ready to drink products in urban India are attracted towards
packaged flavoured milk especially for its health benefits and convenience.

4.5 MOTIVATION

Despite of such huge market for flavoured milk products in India, the flavoured milk brand of
Britannia has the least share among its own brands as well as among other companies in
flavoured milk market.

Having my core elective as marketing, I am curious to find the causes for this issue and
measure the impact of different causes over the consumers switching behaviour in flavoured
milk market.
 CHAPTER 5
RESEARCH METHEDOLOGY
 CHAPTER 5

5.1 RESEARCH DESIGN

Objective 1: To identify the product category with the least consumer preference
Design: Exploratory
Sampling technique: Non probabilistic judgmental sampling
Sample Size: 24
Coverage: Chennai
Objective 2: To find the magnitude of impact each variable has on consumer switching
behaviour
Design: Causal
Sampling technique: Non probabilistic random sampling
Sample Size: 62
Coverage: Chennai

5.2 Selection of variables

The chosen outcome variable for this study is consumer switching behaviour and among
many of the variables affecting consumer switching behaviour this study focused on four
major variables viz. Price, Packaging, Brand awareness, Product quality which are the
independent variables.

5.3 Period of study and source of data

The period of study was from Mar 2018 – June 2018 and the data used for this study were
collected by personal interview technique from the respondents’ viz. sales associates and
customers of 35 organized retail outlets in Chennai.
5.4 METHOD OF DATA COLLECTION

The data collection for the exploratory research was done through both survey method as well
as personal interview method. The survey was used to collect data about consumer preference
for brands under Britannia from the sales associates in organised retail stores who were
assigned to the products of Britannia. The data were collect through personal interview from
the professionals working in Britannia for prolong period and have an immense knowledge
about the company and all its brands.

The primary data collected for the causal research was only by survey method. The unit of
analysis were customers of organised retail stores and specifically the consumers of flavoured
milk products. The sampling size for this study was 62.

5.5 HYPOTHESES

The following hypotheses are developed by testing the relationship between consumer
switching behaviour and factors.

H1: Price has a significant impact on consumer switching behaviour

H2: Packaging has a significant impact on consumer switching behaviour

H3: Product quality has a significant impact on consumer switching behaviour

H4: Brand awareness has a significant impact on consumer switching behaviour

5.6 CONCEPTUAL DIAGRAM

PRICE

H1

PACKAGING
H2
SWITCHING
BEHAVIOUR

H3
PRODUCT
QUALITY
H4

BRAND
AWARNESS
 CHAPTER 6
EXPLORATORY RESEARCH
 CHAPTER 6

6.1 FREQUENCY OF SALES

The chart below is the visual representation of data collected from 35 organized retail outlets.
The unit of analysis where the sales associates assigned to the respective product category.
This survey was conducted to examine the frequency of sales of various Britannia products.
The purpose of this survey was to identify the product category which has the least
acceptance among consumers and to future search for the causes responsible for the
phenomena.

Frequency of Sales
6

Average Rating

The survey result shows that the Winkin Cow product which falls under the flavoured milk
category has the least frequency of sales which is the direct effect of consumer purchase
intention and also has an indirect effect on retailer preference.
This least contribution of the flavoured milk product among other products of Britannia may
not mean that consumers do not prefer purchasing flavoured milk products. So, further
survey was conducted to address this question of consumer brand preference. Unit of analysis
for this survey were consumers of flavoured milk products with a sample size of 62
customers.

6.2 CONSUMER BRAND PREFERENCE

BRAND No. of consumers

Amul kool 23
Cavin's 34
Hershey's 3
Britannia 0
Others 2

Which flavoured milk brand do you buy?

0

3 2

Amul kool
Cavin's Hershey's Britannia
23
Others

34

The above chart shows the consumer brand preference for flavoured milk product.
Britannia’s flavoured milk product (Winkin Cow) has the least consumer preference and this
has a direct effect over its share in flavoured milk category.

Despite of such huge market for flavoured milk products in India, the flavoured milk product
of Britannia has the least share among its own products as well as among other companies in
flavoured milk industry.
According to Ansoff’s matrix this is an existing market with an existing product, therefore
market penetration strategy has to be implemented. Market penetration refers to the
successful selling of a product or the extent to which a product is recognized and bought by
customers in a specific market. It is measured by the amount of sales volume of an existing
product compared to the total target market for that product.

Since there is a huge existing consumer base for flavoured milk products we now just need
the existing consumers to switch from their usual brand to Britannia’s flavoured milk
(Winkin Cow). For this we need to identify and examine the factors influencing consumer
switching behaviour. The magnitude of impact of each factor over the consumer switching
behaviour will help in changing the strategy to increase the sales volume.
 CHAPTER 7
RESULTS AND DISCUSSIONS
 CHAPTER 7

7.1 PACKAGING

Does packaging of a product influence your purchase decision?

Yes 29
No 7
Sometimes 25

Does packaging of a product influence your purchase decision?

41%
48%

Yes No
11% Sometimes

Only 11% of the consumers have said that packaging do not affect their
purchase intention. This is because packaged milkshakes are impulse products
and packaging plays a major role in consumer purchase behaviour while making
an impulse purchase.
 7.2 SWITHCHING BEHAVIOUR DUE TO PACKAGING

Will the design of the product wrapper inspire you to switch to another brand?

Yes 15
No 22
Sometimes 0

he design of the product wrapper inspire you to switch to another bran

0%

41%

Yes No
Sometimes

Even though packaging influences purchase intention, consumers are not ready
to leave their regular brand for the reason of better packaging of another brand.
Consumers may be associated with their regular brand due to other stronger
factors such as Price, Quality and Trust.
7.3 PRICE

What is the price on your brand?

20 16
25 27
30 14
35 and above 2

What is the price on your brand?

3%

24% 27% 20
25
30
35 and above

46%

From the above chart we can infer that packaged milkshakes in India have an
ideal pricing range between Rs.20-30 and most of them are priced Rs.25 and
also an acceptable price by customers. Products priced 35 and above has a very
limited number of customers who price insensitive minority upper class people.
I compare prices with other brands?

Yes 40
No 10
Sometimes 12

I compare prices with other brands?

28%

Yes No
2% Somewhat
70%

98% of the consumers have said that they compare prices of alternative brand
before making a purchase. This proves that pricing of a impulse product has an
immense effect on its sales. We can also infer that consumers are highly
sensitive to price and they are constantly looking for a better deal, this factor
may have a greater impact over consumer switching behaviour.
 7.4 QUALITY

Have you ever compared the quality of your

brand with other brands?

Yes 47
No 14

ave you ever compared the quality of your brand with other brands?

23%

77% Yes
No

Are you satisfied with the quality of the

brand?

Yes 43
No 1
Somewhat 17
 Are you satisfied with the quality of the
brand?

28%

2%
70% Yes No
Somewhat

Over 77% of the consumers admit that they compare quality of different brands,
which can be done only post purchase. Which means that consumers are ready
make experiments by trying a new brand in search for better quality. But the
fact is, almost 98% of the consumers are satisfied with their regular brand or
maybe they quickly find their good quality brand with simple comparisons.
 7.5 SWITCHING BEHAVIOUR DUE TO QUALITY

Will you switch brand if quality is better than

your regular brand?

Yes 53
No 3
Maybe 6

ll you switch brand if quality is better than your regular brand?

10%
5%

Yes No
Maybe
85%

Over 85% of the respondents have said that if they encounter a brand with a
better quality than their regular brand, they will or may switch to the better
quality brand. 95% of consumers switch brands for better quality. This shows
that quality has an important role to play while it comes to switching behaviour
over impulse goods.
7.6 SWITHCHING BEHAVIOUR WHEN COMPARING PRICE
AND QUALITY

If the price of the better quality brand is Rs. 40 and

above, will you still switch?

Yes 23
No 14
Maybe 23

If the price of the better quality brand is

Rs. 40 and above, will you still switch?

Yes No
38% 39% Maybe

23%

Almost 77% of the consumers have said that they will or may switch brand if
the new brand has a better quality even though its priced above Rs.40. However
18% of the consumers who said yes to the previous question have said no due to
the raise in price with better quality. This means that business may lose a
considerable amount of sales by increasing their product price 35 or above.
 7.7 CONSUMER PRIORITY TOWARDS MILKSHAKE PRODUCTS

Which of the following do you consider as the most

important factor a milkshake?

Affordable 2
Healthy 23
Taste 36

of the following do you consider as the most important factor a milksha

3%

38%

Affordable Healthy
Taste

59% of the consumers purchase packaged milkshakes for taste and 38%
are health conscious people. So from this its clear that taste is a very
important factor affecting consumer preference.
7.8 BRAND AWARNESS

Which among the following brand's milkshake are you aware of?

Amul Kool 45
Hershey's 27
Cavin's 48
Britannia 10

Which among the following brand's

milkshake are you aware of?
60

50 48
45

40

30 27

20
10
10

0
Amul Kool Hershey's Cavin's Britannia

How familiar are you with britannia Milkshakes?

I've never heard of them 30

I've heard of them, but never bought one 25
I buy it occasionally 3
I buy it often 2
 How familiar are you with britannia
Milkshakes?

5%3%

50% I've never heard of them

42%
I've heard of them, but never
bought one
I buy it occasionally

I buy it often

From the above two charts its very clear that Brand awareness of Britannia’s
milkshake brand is very low among consumers and it is the first most
requirement for a consumer to try a brand for at least the first time.

42% of the consumers have said that they were aware of the product but never
bought one, this may be due to the pricing factor which is above the threshold
level of Rs.35 and which would have affected the purchase intention of
consumers while they happen to compare price with other brands because
previously we have seen that over 985 of the consumers compare price with
other brands for a better deal and another reason facilitates this behaviour is that
in organised retail stores all brands under similar category are placed together in
the same shelf, which eventually tempts consumers to compare price.
CHAPTER 8
CONCLUSION
 CHAPTER 8

8.1 CONCLUSION

There are four major factors affecting consumer switching behaviour when it comes to the
flavoured milk market. The four factors are Price, Quality, Package and Brand awareness.
According to the current strategy implemented by Britannia for their flavoured milk brand –
Winkin Cow, Price, Packaging and Brand awareness has a negative impact over consumer
switching behaviour. These three variables act as barriers which prevent customers from
making a purchase. The quality of the product has a positive impact over consumer switching
behaviour because consumers feel that Winkin Cow’s Quality is one of the best among top
milk shake brands.

When customers make a simple value calculation before they do a purchase they feel that one
positive and three negative factors make a negative value and hence hesitate to switch from
their regular brand. The company can use their positive factor to penetrate into the market
and also make some changes in those three negative factors to increase customer purchase
intention by triggering a switching behaviour by giving better value than the competitor. This
can be done using the following suggetions.
 CHAPTER 9
SUGGESTIONS TO THE COMPANY
 CHAPTER 9

9.1 SUGGESTIONS TO THE COMPANY

1. The company can implement an innovative and eco-friendly packaging

to grab customer’s attention
2. I would suggest the company to bring down their MRP from Rs.40
to somewhere between Rs.20-30
3. They should improve their promotional activities by promoting
through television and news paper
4. The strength of the Winkin Cow brand is its Quality, so this can be
used for promotional purpose by giving free sampling
CHAPTER 10
REFERENCE
 CHAPTER 10

10.1 REFERENCE

• Burnham, Thomas A, (2003), “Consumer Switching Costs: A Typology,

Antecedents, and Consequences”

• M.Sathish , K.Santhosh Kumar , (2011), “A Study on

Consumer Switching Behaviour in Cellular Service Provider: A
Study with reference to Chennai”

• Gupta, Alok, (2004), “An Empirical Study of Consumer Switching

from Traditional to Electronic Channels: A Purchase-Decision Process
Perspective”

• Harvir S. Bansal, Shirley F. Taylor, (1999), “The Service Provider

Switching Model (SPSM):A Model of Consumer Switching Behaviour
in the Services Industry”

• Dean, Alison, Yu, Yi‐Ting, (2001), “The contribution of emotional

satisfaction to consumer loyalty”

• Gounaris, Spiros, Athanassopoulos, Antreas, (2005),

“Behavioural responses to customer satisfaction: an empirical
study”

• Pei-Yu Chen, Lorin M. Hitt (2002), “Measuring Switching Costs and the
Determinants of Customer Retention in Internet-Enabled Businesses: A
Study of the Online Brokerage Industry”

• Keaveney, S. (1995). “Customer Switching Behavior in

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 A STUDY ON
CONSUMER
SWITCHING BEHAVIOR
IN FLAVORED MILK
PRODUCTS
by ALEEF S

Submission date: 02-Aug-2018 11:43PM (UTC+0530)

Submission ID: 987097632
File name: Project_Report_without_company_prof ile.pdf (1.12M)
Word count: 3258
Character count: 17276