PROJECTREPORT

on

A Study On Consumer Behaviour - With Reference To Heritage

Products

BY

AKSHAYA KUMAR DODIYA

1NZ18MBA03

Submitted to

DEPARTMENT OF MANAGEMENT STUDIES

NEW HORIZON COLLEGE OF ENGINEERING,

OUTER RING ROAD, MARATHALLI,

BENGALURU
In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Prof. Srikant Rajat K.G.

Senior Assistant Professor

2018 - 2020
 CERTIFICATE
This is to certify that Akshaya kumar dodiya bearing USN 1NZ18MBA03, is a
bonafide student of Master of Business Administration course of the Institute
2018-2020, autonomous program, affiliated to Visvesvaraya Technological
University, Belgaum. Project report on ‘A Study On Consumer Behaviour -
With Reference To Heritage Products’ prepared by him/her under the guidance
of Prof. Srikant, in partial fulfillment of requirements for the award of the
degree of Master of Business Administration of Visvesvaraya Technological
University, Belgaum Karnataka.

Signature of Internal Guide Signature of HOD

Principal

Name of the Examiners with affiliation Signature with date

1. External Examiner

2. Internal Examiner
 DECLARATION

I, Akshaya kumar dodiya, hereby declare that the project report on “A Study On Consumer
Behaviour - With Reference To Heritage Products” with reference to “Heritage product”
prepared by me under the guidance of Prof. Srikant, faculty of M.B.A Department, New
Horizon College of Engineering.

I also declare that this project report is towards the partial fulfilment of the university
regulations for the award of the degree of Master of Business Administration by
Visvesvaraya Technological University, Belgaum.

I have undergone an industry project for a period of Twelve weeks. I further declare that this
report is based on the original study undertaken by me and has not been submitted for the
award of a degree/diploma from any other University / Institution.

Signature of Student
Place: Bengaluru
Date:
 ACKNOWLEDGEMENT

The successful completion of the project would not have been possible without
the guidance and support of many people. I express my sincere gratitude to
( N. Vamseedhar, Marketing Head, Heritage Milk, Bengaluru), for allowing to
do my project at Heritage Milk.

I thank the staff of Heritage Milk, Bengaluru for their support and guidance and
helping mein completion of the report.

I am thankful to my internal guide Prof Srikant, for his constant support and
inspiration throughout the project and invaluable suggestions, guidance and also
for providing valuable information.

Finally, I express my gratitude towards my parents and family for their

continuous support during the study.

AKSHAYA KUMAR DODIYA

1NZ18MBA03
 Date: 28.02.2020
To
The Head of the Department- MBA,
New Horizon College of Engineering,
Outer Ring Road, Marathahalli,
Bengaluru – 560 103.
Sub: Consent for Internship
Dear Sir/Madam,
With reference to the above subject, we are pleased to provide an
opportunity to Mr. AKSHAYA KUMAR DODIYA, (USN No. 1NZ18MBA03) OF M.B.A. to
undertaken Marketing Internship on the “A STUDY ON CONSUMER BEHAVIOUR” in our
organization for the period 23.12.2019 to 23.02.2020.
A report needs to be submitted on completion of the internship for obtaining the
Internship Completion certificate. It may please be noted that students has to make his own
arrangements towards boarding, lodging and transportation and the company will not pay
any stipend/allowance.

For Heritage Foods (India) Ltd.

N. Vamseedhar
Marketing Manager

HERITAGE FOODS(INDIA) LTD.

AN ISO: 22000 CERTIFIED COMANY

Sales Office Products: Milk, Door No: 220, 3rd cross, 2nd floor, shivakrupa Complex,
Bengaluru, Karnataka 560068
 TABLE OF CONTENTS

SL. NUMBER CONTENTS PAGE NUMBERS

1 Executive Summary 1

2 Theoretical Background Of The Study 2-17

3 Industry Profile &Company Profile 18-38

4 Application Of Theoretical Framework 38-42

Analysis And Interpretation Of Financial
5 43-60
Statements And Reports
Learning Experience- Findings,
6 61-63
Suggestions And Conclusion

7 Bibliography 64
EXECUTIVE SUMMARY

This internship report is based on two months period internship program that I have lucratively
completed at Heritage Foods Limited in marketing department from 23.12.2109 to 23.02.2020 as a
requirement of my MBA program in New Horizon College of Engineering Established in 2001.

The project entitled “Consumer awareness of Heritage Foods Limited” aims to understand Consumer
awareness of Heritage Foods Limited. The data used in the report consists of both primary and
secondary data. Primary data is which I collected from my day to day study and secondary data is
from company’s website portal.

Heritage Foods Limited (commonly known as Heritage Foods) is one of the largest private
sector dairy enterprises in Southern India.

This study is based upon the Consumer awareness of Heritage Foods Limited.
 CHAPTER 1:

INTRODUCTION AND THEORETICAL BACKGROUND OF THE STUDY

 1 INTRODUCTION

Consumer behaviour is helpful in understanding the purchase Behaviour and preferences of

different consumers. As consumers, we differ in terms of sex, age, education, occupation, income,
family setup, religion, nationally and social status. Because of this different back ground factors, we
have different needs and we only buy those products and services, which we think, will satisfy our
needs. In today’s world of rapid changing technology, consumer tastes are also characterized by fast
changes. To survive in the market, a firm has to be constantly implement innovations and has to
understand the latest consumer trends and tastes. Consumer behaviour provides invaluable clues
and guidelines to marketers on new technological frontiers, which they should explore.

A consumer’s decision to purchase a particular product of service is the result of complex

interplay of a number of variables. The starting point of the decision process is provided by the
companies marketing stimuli in the shape of product, promotion, and price and distribution strategy.
Consumers often purchase new products that are associated with a favourable viewed brand name.

This present study is to identify the level of satisfaction and the behaviour of the consumers
towards the Heritage Milk in Tirupati region, which is very essential for the company’s future
changes.

The term consumer behaviour is defined as the behaviour that consumer display in
searching for, purchasing using, evaluating and disposing of products and services that they expect
will satisfy their needs.

Consumer behaviour focuses on how individuals make decisions to spend their available
resources (time, money, effort) on consumption-related items that includes what they buy, why they
buy, when they buy it, where they buy it, how often they buy it, how often they use it, how they
evaluate it after the purchase and the impact of such evaluations on future purchases, and how they
dispose of it.
 Two different kinds of consuming entities: the personal consumer and the organizational
consumer.

Personal Consumer → Buys goods and services for his or her own use, for the use of the
household or as a gift for a friend. The products are bought for final use by individuals, who are
referred to as end users or ultimate consumers.

Organizational Consumer → Includes profit and non-profit businesses, government agencies

(local, state, national) and institutional (e.g. schools, hospitals, and prisons), all of which buy
products, equipment, and services in order to run their organizations.

A SIMPLIFIED MODEL OF CONSUMER DECISION MAKING:

The process of consumer decision making can be viewed as three distinct but interlocking
stages: the input stage, the process stage, and the output stage.

The Input Stage → Influences the consumer’s recognition of a product need and consists of two
major sources of information, the firm’s marketing efforts (the product itself, its price, its
promotion and where it is sold) and the external sociological influences on the consumers.

The Process Stage → It is the model focuses on how consumers make decisions. The
psychological factors inherent in each individual.

The Output Stage → It is the consumer decision making model consists of two closely related
post decision activities.
THEORETICAL BACKGROUND:

Consumer behaviour is the study of individuals, groups, or organizations and all the activities
associated with the purchase, use and disposal of goods and services, including the consumer's
emotional, mental and behavioural responses that precede or follow these activities. Consumer
behaviour emerged in the 1940s and 50s as a distinct sub-discipline in the marketing area. Consumer
behaviour is an inter-disciplinary social from psychology, sociology, social anthropology,
ethnography, marketing and economics, especially behavioural economics. It examines how
emotions, attitudes and preferences affect buying behaviour. Characteristics of individual consumers
such as demographics, personality lifestyles and behavioural variables such as usage rates, usage
occasion, loyalty, brand advocacy, willingness to provide referrals, in an attempt to understand
people's wants and consumption are all investigated in formal studies of consumer behaviour. The
study of consumer behaviour also investigates the influences, on the consumer, from groups such as
family, friends, sports, reference groups, and society in general.

Customer relationship management (CRM) databases have become an asset for the analysis of
customer behaviour. The voluminous data produced by these databases enables detailed
examination of behavioural factors that contribute to customer re-purchase intentions, consumer
retention, loyalty and other behavioural intentions such as the willingness to provide positive
referrals, become brand advocates or engage in customer citizenship activities. Databases also assist
in market segmentation, especially behavioural segmentation such as developing loyalty segments,
which can be used to develop tightly targeted, customized marketing strategies on a one-to-one
basis. (Also see relationship marketing)

Origins of consumer behaviour:

In the 1940s and 50s, marketing was dominated by the so-called classical
schools of thought which were highly descriptive and relied heavily on case study approaches
with only occasional use of interview methods. At the end of the 1950s, two important
reports criticized marketing for its lack of methodological rigor, especially the failure to
adopt mathematically-oriented behavioural science research methods. The stage was set for
marketing to become more inter-disciplinary by adopting a consumer-behaviourist
perspective.

From the 1950s, marketing began to shift is reliance away from economics and towards other
disciplines, notably the behavioural sciences, including sociology, anthropology and clinical
psychology. This resulted in a new emphasis on the customer as a unit of analysis. As a
result, new substantive knowledge was added to the marketing discipline - including such
ideas as opinion leadership, reference groups and brand loyalty. Market segmentation,
especially demographic segmentation based on socioeconomic status (SES) index and
household life-cycle, also became fashionable. With the addition of consumer behaviour, the
marketing discipline exhibited increasing scientific sophistication with respect to theory
development and testing procedures.

In its early years, consumer behaviour was heavily influenced by motivation research, which
had increased the understanding of customers, and had been used extensively by consultants;
in the advertising industry and also within the discipline of psychology in the 1920s, '30s and
'40s. By the 1950s, marketing began to adopt techniques used by motivation researchers
including depth interviews, projective techniques, thematic apperception tests and a range of
qualitative and quantitative research methods. More recently, scholars have added a new set
of tools including: ethnography, photo-elicitation techniques and phenomenological
interviewing. Today, consumer behaviour (or CB as it is affectionately known) is regarded as
an important sub-discipline within marketing and is included as a unit of study in almost all
undergraduate marketing programs.

Definition and explanation:

Consumer behaviour entails "all activities associated with the purchase, use and
disposal of goods and services, including the consumer's emotional, mental and behavioural
responses that precede or follow these activities." The term, consumer can refer to individual
consumers or organizational consumers. Consumer behaviour is concerned with:

• purchase activities: how consumers acquire products and services, and all the activities leading
up to a purchase decision, including information search, evaluating goods and services and
payment methods
• use or consumption activities: concerns the who, where, when and how of consumption
• disposal activities: concerns the way that consumers dispose of products and packaging; may
also include reselling activities such as eBay and second-hand markets

Consumer responses may be:

• emotional (or affective) responses: refer to emotions such as feelings or moods,

• mental (or cognitive) responses: refer to the consumer's thought processes, them
• behavioural responses: refer to the consumer's observable responses in relation to the purchase
and disposal of goods or services.

As a field of study, consumer behaviour is an applied social science. Consumer behaviour

analysis is the "use of behaviour principles, usually gained experimentally, to interpret human
economic consumption." As a discipline, consumer behaviour stands at the intersection of
economic psychology and marketing science.

The purchase decision and its context:

Understanding purchasing and consumption behaviour is a key

challenge for marketers. Consumer behaviour, in its broadest sense, is concerned with
understanding both how purchase decisions are made and how products or services are
consumed or experienced.

Some purchase decisions involve long, detailed processes that include extensive information
search to select between competing alternatives. Other purchase decisions, such as impulse
buys, are made almost instantaneously with little or no investment of time or effort in
information search.

Some purchase decisions are made by groups (such as families, households or businesses)
while others are made by individuals. When a purchase decision is made by a small group,
such as a household, different members of the group may become involved at different stages
of the decision process and may perform different roles. For example, one person may
suggest the purchase category, another may search for product-related information while yet
another may physically go to the store, buy the product and transport it home. It is customary
to think about the types of decision roles.

such as:

The Initiator
the person who proposes a brand (or product) for consideration (something in return);
The Influencer
someone who recommends a given brand;
The Decider
the person who makes the ultimate purchase decision;
The Purchaser
 the one who orders or physically buys it;
The User
the person who uses or consumes the product.

For most purchase decisions, each of the decision roles must be performed, but not always by
the same individual. For example, in the case of family making a decision about a dining-out
venue, the father or mother may initiate the process by intimating that he/she is too tired to
cook, the children are important influencers in the overall purchase decision, but both parents
may act as joint deciders performing a gate-keeping role by vetoing unacceptable alternatives
and encouraging more acceptable alternatives. The importance of children as influencers in a
wide range of purchase contexts should never be underestimated and the phenomenon is
known as pester power.

To understand the mental processes used in purchasing decisions, some authors employ the
concept of the "black box"; a figurative term used to describe the cognitive and affective
processes used by a consumer during a purchase decision. The decision model situates the
black box in a broader environment which shows the interaction of external and internal
stimuli (e.g. Consumer characteristics, situational factors, marketing influences and
environmental factors) as well as consumer responses. The black box model is related to the
black box theory of behaviourism, where the focus extends beyond processes occurring
inside the consumer, and also includes the relation between the stimuli and the consumer's
response.

The decision model assumes that purchase decisions do not occur in a vacuum. Rather they
occur in real time and are affected by other stimuli, including external environmental stimuli
and the consumer's momentary situation. The elements of the model include: interpersonal
stimuli (between people) or intrapersonal stimuli (within people), environmental stimuli and
marketing stimuli. Marketing stimuli include actions planned and carried out by companies,
whereas environmental stimuli include actions or events occurring in the wider operating
environment and include social factors, economic, political and cultural dimensions. In
addition, the buyer's black box includes buyer characteristics and the decision process, which
influence the buyer's responses.

The consumer's purchase decision process: an overview

The consumer buying process is usually depicted as consisting of 5 distinct stages:

The purchase decision begins with the problem recognition stage which occurs when the
consumer identifies a need, typically defined as the difference between the consumer's
current state and their desired state. The strength of the need drives the entire decision
process. Information search describes the phase where consumers scan both their internal
memory and external sources for information about products or brands that will potentially
satisfy their need. The aim of the information search is to identify a list of options that
represent realistic purchase options. Throughout the entire process, the consumer engages in a
series of mental evaluations of alternatives, searching for the best value. Towards the end of
the evaluation stage, consumers form a purchase intention, which may or may not translate
into an actual product purchase. Even when consumers decide to proceed with an actual
purchase, the decision-process is not complete until the consumer consumes or experiences
the product and engages in a final post purchase evaluation; a stage in which the purchaser's
actual experience of the product is compared with the expectations formed during the
information search and evaluation stages. The stages of the decision process normally occur
in a fixed sequence. However, it should be noted that information search and evaluation can
occur throughout the entire decision process, including post-purchase

Problem recognition

The first stage of the purchase decision process begins with problem recognition (also known
as category need or need arousal). This is when the consumer identifies a need, typically
defined as the difference between the consumer's current state and their desired or ideal state.
A simpler way of thinking about problem recognition is that it is where the consumer decides
that he or she is 'in the market' for a product or service to satisfy some need or want. The
strength of the underlying need drives the entire decision process.

Theorists identify three broad classes of problem-solving situation relevant for the purchase
decision

Extensive problem-solving

Purchases that warrant greater deliberation, more extensive information search and evaluation
of alternatives. These are typically expensive purchases, or purchases with high social
visibility e.g. fashion, cars
Limited problem-solving

Known or familiar purchases, regular purchases, straight re-buys. Typically, low-priced

items.

Routinized problem-solving

Repeat purchases or habitual purchases

Consumer evaluation can be viewed as a distinct stage. Alternatively, evaluation may occur
continuously throughout the entire decision process. Consumers evaluate alternatives in terms
of the functional (also called utilitarian) and psycho-social (also called the value-expressive
or the symbolic) benefits offered.

• Functional benefits are the tangible outcomes that can be experienced by the consumer such as
taste or physical appearance.
• Psycho-social benefits are the more abstract outcomes or the personality-related attributes of a
brand, such as the social currency that might accrue from wearing an expensive suit, designer
label or driving a 'hot' car.

Brand image (or brand personality) is an important psycho-social attribute. Consumers can
have both positive and negative beliefs about a given brand. A considerable body of research
suggests that consumers are predisposed towards brands with a personality that matches their
own and that a good match can have an impact on brand preference, brand choice,
satisfaction with a brand, brand commitment and loyalty and the consumer's propensity to
give positive word-of-mouth referrals. The branch of consumer behaviour that investigates
the matching of a brand's personality and the consumer's personality is known as self-
congruity research. Consumer beliefs about a brand or product category may vary depending
on a range of factors including the consumer's prior experience and the effects of selective
perception, distortion and retention. Consumers who are less knowledgeable about a category
tend to evaluate a brand based on its functional characteristics. However, when consumers
become more knowledgeable, functional attributes diminish and consumers process more
abstract information about the brand, notably the self-related aspects.

Influences on purchase decision

Purchasing is influenced by a wide range of internal and external factors

Internal influences on purchase decision

Internal influences refer to both personal and interpersonal factors. Social theory suggests
that individuals have both a personal identity and a social identity. Personal identity consists
of unique personal characteristics such as skills and capabilities, interests and hobbies. Social
identity consists of the individual's perception of the central groups to which an individual
belongs and may refer to an age group, a lifestyle group, religious group, educational group
or some other reference group. Social psychologists have established that the need to belong
is one of the fundamental human needs. Purchasing behaviour is therefore influenced by a
broad range of internal factors such as psychological, demographic and personality factors.
Demographic factors include income level, psychographics (lifestyle), age, occupation and
socio-economic status. Personality factors include knowledge, attitudes, personal values,
beliefs, emotions and feelings. Psychological factors include an individual's motivation,
attitudes, personal values and beliefs. Other factors that may affect the purchase decision
include the environment and the consumer's prior experience with the category or brand.
Social identity factors include culture, sub-culture and reference groups. Other factors that
may affect the purchase decision include the environment and the consumer's prior
experience with the category or brand.

Motivations and emotions

Maslow's hierarchy suggests that people seek to satisfy basic needs such as food and shelter before
higher order needs become meaningful

The consumer's underlying motivation drives consumer action, including information search
and the purchase decision. The consumer's attitude to a brand (or brand preference) is
described as a link between the brand and a purchase motivation. These motivations may be
negative - that is to avoid pain or unpleasantness, or positive - that is to achieve some type of
reward such as sensory gratification.

One approach to understanding motivations, was developed by Abraham Maslow. Maslow's

hierarchy of needs is based on five levels of needs, organized accordingly to the level of
importance.

Maslow's five needs are:

Physiological
basic levels of needs such as food, water and sleep
Safety
the need for physical safety, shelter and security
Belonging
the need for love, friendship and also a desire for group acceptance
Esteem
The need for status, recognition and self-respect
Self-actualization
The desire for self-fulfillment (e.g. personal growth, artistic expression)

Physiological needs and safety needs are the so-called lower order needs. Consumers
typically use most of their resources (time, energy and finances) attempting to satisfy these
lower order needs before the higher order needs of belonging, esteem and self-actualization
become meaningful.

Perception

Part of marketing strategy is to ascertain how consumers gain knowledge and use information
from external sources. The perception process is where individuals receive, organize and
interpret information in order to attribute some meaning. Perception involves three distinct
processes: sensing information, selecting information and interpreting information. Sensation
is also part of the perception process, and it is linked direct with responses from the senses
creating some reaction towards the brand name, advertising and packaging. The process of
perception is uniquely individual and may depend on a combination of internal and external
factors such as experiences, expectations, needs and the momentary set.

External influences on purchase decision

Purchasing behaviour can also be affected by external influences, such as culture, sub-
culture, social class, reference groups, family and situational determinants.

Culture

Culture is the broadest and most abstract of the external factors. Culture refers to the
complexity of learning meanings, values, norms, and customs shared by members of a
society. Cultural norms are relatively stable over time, therefore, culture has a major impact
on consumer behaviour. Research studies have consistently shown that culture influences
every almost aspect of purchasing: it impacts on basic psychological domains such as self-
identity and motivation; it also impacts on the way that information is processed and the way
that advertising messages are interpreted.

Marketers, interested in global expansion, are especially interested in understanding cross-

cultural differences in purchasing and consumption. For instance, Ferrari, one of the world's
top brands found that Chinese consumers are very different from their Western counterparts.
Whereas consumers in the US, UK and Australia expect to wait 12 months for a custom-
made Ferrari, prospective Chinese buyers want to drive the vehicle off the showroom floor.
China is an ‘instant-gratification market’. Buyers see their friends riding around in a luxury
car and want to have the same as quickly as possible. To meet the growing demand for luxury
goods, Ferrari and other luxury car makers have been forced to modify their production
processes for Asian markets.

Subcultures

People with shared interests, such as skaters and bladders, tend to form informal groups
known as subcultures

Subcultures may be based on age, geographic, religious, racial, and ethnic differences. More
often, however, a subculture occurs when people with shared interests form a loose-knit
group with a distinctive identity (sometimes called consumer tribes). Members of subcultures
are self-selected, and signal their membership status by adopting symbols, rituals or
behaviours that are widely understood by other members of the tribe (e.g. a dress code,
hairstyle or even a unique way of speaking). For example, within youth culture it is possible
to identify a number of sub-groups with common interests such as skaters and bladders,
surfers, ravers, punks, skin-heads, Goths, homies and others

A different type of subculture is a consumption subculture which is based on a shared

commitment to a common brand or product. In other words, consumption subcultures cut
across demographic, geographic and social boundaries. The most well-known example of a
consumption subculture is that of Harley-Davidson motorcycle owners. Ethnographic
researchers who have studied Harley riders believe that there are only two types of motor
cyclists, Harley owners and the rest. Harley

-Davidson has leveraged the values of this subculture by establishing the Harley Owners
Group (HOG).

Subcultures are important to marketers for several reasons. Firstly. given that subcultures can
represent sizeable market segments which are profitable and influential, there are obvious
advantages in developing and selling products and services that meet the needs of subculture
members. Secondly, and perhaps less obviously, many new fads and fashions emerge
spontaneously from within these tribal groups. Trend-spotters are accordingly interested in
studying the lifestyles and activities of tribes in an effort to spot new trends before they go
mainstream

Social class

Social class refers to relatively homogenous divisions in a society, typically based on socio-
economic variables such as educational attainment, income and occupation.

Reference groups

A reference group is defined as "a group whose presumed perspectives or values are being
used by an individual as the basis for his or her judgment, opinions, and actions." Reference
groups are important because they are used to guide an individual’s attitudes, beliefs and
values. Insights into how consumers acquire a given value system can have obtained from an
understanding of group influence and group socialization processes.

The literature identifies five broad types of reference group; primary, secondary, aspirational,
dissociative and formal:

Primary groups: groups, such as family, that exert a strong influence on attitudes and
behaviours

Secondary groups: groups such as clubs, societies, sports teams, political parties, religions
that align with a person's ideas or values, but exert a less fundamental influence on the
formation of attitudes and behaviours.

Aspirational groups groups to which an individual does not currently belong, but possibly
aspires to become a member because the group possesses characteristics which are admired.
Dissociative reference groups - a group which has a negative image; individuals may
disapprove of the dissociative group's values, attitudes or behaviours and may seek to
distance themselves from such groups.

Opinion Leaders can act like reference groups in that they exert considerable social influence
because of their product knowledge, expertise and credibility. In the marketing literature,
opinion leaders are also known as influencers, mavens and even hubs. Opinion leaders are
specific to a product category, so that an opinion leader for computers is not likely to be an
opinion leader for fashion. Typically, opinion leaders have high levels of involvement with
the product category, are heavy users of the category and tend to be early adopters of new
technologies within the category. Journalists, celebrities and bloggers are good examples of
an opinion leader due to their broad social networks and increased ability to influence
people’s decisions. Indeed, recent evidence suggests that bloggers may be emerging as a
more important group of opinion leaders than celebrities.

In order to leverage the value of opinion leaders in marketing strategies, it is important to be

able to identify the unique opinion leaders for each category or situation and this can be very
challenging. Some techniques that can be used are through key informants, socio-metric
techniques and self-questionnaires. More often, however, marketers use gut instinct to
identify opinion leaders. For example, marketers of athletic shoes have been known to
provide gym/ aerobics instructors with free shoes in the hope that class members will adopt
the same brand as the instructor. Marketers of cosmetics and skincare preparations regularly
provide fashion editors with free samples in the hope that their products will be mentioned in
fashion magazines.

Consumer decision styles

A number of theorists have argued that certain fundamental decision-making styles can be
identified. A decision-making style is defined as a "mental orientation characterizing a
consumer's approach to making choices. “Sproule’s and Kendall (1986) developed a
consumer style inventory (CSI) consisting of eight factors, such as price-sensitivity, quality-
consciousness, brand-consciousness, novelty-seeking, fashion-consciousness and habit.
Based on these factors, the authors developed a typology of eight distinct decision-making
styles:
• Quality conscious/Perfectionist: Quality-consciousness is characterized by a consumer’s search
for the very best quality in products; quality conscious consumers tend to shop systematically
making more comparisons and shopping around.
• Brand-conscious: Brand-consciousness is characterized by a tendency to buy expensive, well-
known brands or designer labels. Those who score high on brand-consciousness tend to believe
that the higher prices are an indicator of quality and exhibit a preference for department stores
or top-tier retail outlets.
• Recreation-conscious/ Hedonistic: Recreational shopping is characterized by the consumer’s
engagement in the purchase process. Those who score high on recreation-consciousness regard
shopping itself as a form of enjoyment.
• Price-conscious: A consumer who exhibits price-and-value consciousness. Price-conscious
shoppers carefully shop around seeking lower prices, sales or discounts and are motivated by
obtaining the best value for money
• Novelty/fashion-conscious: characterized by a consumer’s tendency to seek out new products
or new experiences for the sake of excitement; who gain excitement from seeking new things;
they like to keep up-to-date with fashions and trends, variety-seeking is associated with this
dimension.
• Impulsive: Impulsive consumers are somewhat careless in making purchase decisions, buy on
the spur of the moment and are not overly concerned with expenditure levels or obtaining
value. Those who score high on impulsive dimensions tend not to be engaged with the object at
either a cognitive or emotional level.
• Confused (by over-choice): characterized by a consumer’s confusion caused by too many
product choices, too many stores or an overload of product information; tend to experience
information overload.
• Habitual / brand loyal: characterized by a consumer’s tendency to follow a routine purchase
pattern on each purchase occasion; consumers have favorite brands or stores and have formed
habits in choosing, the purchase decision does not involve much evaluation or shopping around.

The Consumer Styles Inventory (CSI) has been extensively tested and retested in a wide
variety of countries and purchasing contexts. Many empirical studies have observed cross-
cultural variations in decisions styles, leading to numerous adaptations or modifications of
the CSI scale for use in specific countries. Consumer decision styles are important for
marketers because they describe behaviours that are relatively stable over time and for this
reason, they are useful for market segmentation.
 CHAPTER 2:

INDUSTRY PROFILE & COMPANY PROFILE

 INDUSTRY PROFILE

GENERAL INTRODUCTION

The progress of mankind and civilization has, since began, been closely alike with his diet. Even
today the leading nation and nations capable of becoming strong are those, which can obtain food in
abundance for their people.

It has been said that cow is a machine that converts raw materials (plants) into food in a
surprisingly efficient manner. The method by which cattle are managed in order o produce milk can
be accomplished in many ways. In order to be most successful, dairymen or those contemplating
entering the business should carefully survey to produce under local conditions.

Milk may be defined as the whole, fresh, clean, lacteal secretion obtained by the complete
milking of one or more healthy milk animals. It is an almost ideal good. Although milk is commonly
thought of as a beverage, it is nature’s most nearly perfect food and contains more actual solids than
many so called slid goods, especially vegetable. Milk is the only food, which is designed by nature
solely as good. It serves as the foundation of an adequate diet. It supplies bodybuilding protein,
bone forming minerals and health giving vitamins and furnishers’ energy giving lactose and milk fat.
All these properties make milk important for pregnant mothers, growing children, adolescents,
adults, invalids, convalescents and patients alike. An adequate consumption of milk can correct
dieting deficiencies for most people to have strong and healthy bodies. It is a delicious and
appetizing good for all ages as well as being healthful.

CONSTITUTENTS OF MILK PERCENTAGE

Water 87.0

Butterfat 4.0

Casein 2.0

Albumin 0.5
Lactose (Milk sugar) 5.0

Minerals 0.7

Milk constituents are divided into groups, water and solids. The constituents other than water
are called the total solids (TS). The total solids mine the butterfat is termed as the solids-not fat
(SNF). All the constituents expect the butterfat are known as the milk serum. The casein and albumin
make up most of the protein of the milk actually about 0.5% globulin also is present.

The major constituents of milk are water, butterfat, protein, lactose and minerals. The minor
constituents are vitamins, pigments such as carotenes, fat soluble pigment xanthophyll’s and water
soluble pigment Lactoflavin, Cholesterol, Phospholipids (lecithin), sterols, enzymes such as lipase,
Galactase, diastase etc., gases such as carbon dioxide, oxygen and nitrogen and nitrogenous
substances such as uric acid, urea nitrogen and truces of amino acids. The true constituents are milk
fat, casein and lactose.

Milk is absolutely essential for the welfare of human race. The cow has been rightly called
“the foster mother of the human race” and she is found in most of the civilized countries of the
world.

MARKET MILK INDUSTRY IN INDIA AND ABROAD

Although a beginning in organized milk handling was made in India with the establishment of
military dairy farms (oldest Allahabad, 1889), the salient features of the market industry had been:

1. Handling of milk in Co-operative Milk Unions established all over the country on a small scale
in the early stages.
2. Long distance refrigerated rail-transport or milk from Anand to Bombay since 1945.
3. Pasteurization and bottling of milk on a large scale for organized distribution was started a
Aarey (1950), Worley (1961), Calcutta (Haringhta, 1959), Delhi (1959), Madras (1963) etc.,
4. Establishment of Milk plants under the five-year pans for Dairy Development all over India.
These were taken up with the dual object of increasing the national level of milk
consumption and ensuring better returns to the primary milk producer. Their main aim was
to produce more, better and cheaper milk.
GROWTH AND DEVELOPMENT OF THE INDUSTRY

Until the year 1940, there was very little published information of the method of
preparation and use of these products. The credit for the first publication on the subject goes to Dr.
W.B. Davies, the first director of Dairy Research, India Dairy Research Institute (now National),
Bangalore. Within the span of three or four decades’ sine his book appeared, considerable research
has been conducted at the National Dairy Research Institute and other place on indigenous Dairy
Products.

In India, there was no progress in the Diary Industry before independence. Government of
India realized the necessity of increasing Milk production and by products there by availing
substantial job opportunities to the urban and rural Community. The government of India has
focused much more attention on Dairy Development Programmed by allocating more funds on the
4th and 5th Five year plans. The Government of India during 1970 has launched massive programmed
via. Flood Operation Flood II and I with the help of European Nations and world Production Program
costing Rs.500 Crores.

The Government of India has undertaken various schemes through organizations and
institutions viz., India Dairy Corporation, India Dairy Development Board animal husbandry
department of all Sates, Private Sectors, Organizations of milk Producers, Co-operative and Dairy
Plants, National Dairy Research Institute. These programs enable for immediate development in
Dairy Activities, Dairy development in our Country with the helps of and effective marketing system.

A market is one of Principal way of increasing milk production and milk productivity of Dairy
Industry. In addition to the above, marketing helps to the enhancement of profitability of the
enterprise.
OPERATION FLOOD PROGRAMME IN INDIA

In order to build a viable and sustaining National Dairy Industry and Co-operative lines the
NDDB launched a project christened operation Flood mobilized from the sale of products based on
foreign food donations in the form of Skim Milk Powder and Butter Oil. Operation flood, the lagers
development Program undertaken in the worked, was initiated closely on the heels of green
Revolution in the Country. Against the back drop of huge surplus of Milk Production in the highly
developed Milk producing Countries in the West and dwindling per capital. Milk availability at home
with its pledge to provide milk to one and all it was considered the World’s large Dairy Development
Program. It spurred the Indian Dairy Industry to launch a “White Revolution”.

The establishment of Milk Producers off co-operative societies to link dairy Development
worth Milk Marketing formed the Central Plant of the Project, which gave into a vigorous Milk co-
operative movement under the basis of NDDK. This was a unique development effort, which was
initiated at the grassroots level the villager and went up to the “Dairy Federation” of a state with its
operational effectiveness ascending at every step.

According to the Agreement signed by World Food Program (WFP) and Government of India,
the WFP will arrange to supply 1,26,000 metric tones of butter oil which the corporation will handle
on behalf of the Government. The Projector aims at the improvement of Milk Marketing in the
Organized Sector especially in the Four Major Cities extended over ten States i.e., Punjab, Haryana,
Rajasthan, Utter Pradesh, Bihar, West Bengal, Tamil nadu, Andhra Pradesh, Maharashtra and
Gujarat.

NATIONAL DAIRY DEVELOPMENT BOARD (NDDB):

At the time of inauguration of cattle feed factory at Kanjari in October 1964. The late Shri Lal
Bahadur Shastri, the Prime Minister of India paid an unscheduled visit to milk production Co-
operative society and stayed there overnight. He was impressed by the Socio-economic changes
brought by milk co-operatives in Kaira District, and desired to have a national Dairy Development
Board is the Chief Executive of the organization who is supported by Professional to carry out
Board’s activities.

ANAND PATTERN DAIRY DEVELOPMENT

The formation of Anand Pattern of milk co-operatives was landed with the organization of the
Kiara District Co-operatives Milk Production. Milk Producers themselves control procurement
processing and marketing.

KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LIMITED (AMUL)

Amul symbolizes the successful struggle if Kiara District Farmers to earn a fair price for their
products. It reached its climax in 1945. The Milk was then collected by a Private Trader Mr. Pestonji
Edurji person through contractors for Bombay Milk Scheme. Every Milk producer can become a
member of co0operative Society. As a general meeting of members, representatives are selected to
form a managing committee, which Manager the day affaires to milk collection and its testing
concept, sold cattle feed. Each society also provides Artificial Insemination (AI) services and
veterinary first aid.

DAIRY INDUSTRY IN ANDHRA PRADESH

The main occupation in Andhra Pradesh is cultivation. The villages reflect the socio-economic
development, moral and cultural values of human race Dairy stand as the back bone of Agriculture
and at the same time it maintains important role for stability of rural economic conditions and helps
to maintain nation’s health by supplying sweet milk. It provides not only health but also income to
milk producers.

Self Sufficiency:
 In Andhra Pradesh the pilot milk scheme brought revolutionary change in Dairy Development
and the economic development. The program of “Operation Flood” created milk revolution and laid
new hopes for eradication of poverty and unemployment. Now, the Dairy Industry is equipped with
Modern Technical know how and is on a position to face any challenge of future milk demands
under co-operative sector several steps are taken to provide milk collecting centers in every nook
and corner of the state of increase the production capacity of the milk yielding animals the help of
program of modern technical methods for achieving self-sufficiency in milk production.

Dairy Development:

In 1960 a pilot milk supply scheme was started in our started in our state for the Dairy
Development. It initial milk collection capacity was 100 liters a day at the time of starting. Now, its
dairy milk collecting increased 10 lakh liters per day. It is acting as a liaison between milk producers
of villages and consumers of the milk providing reasonable price to the producers to maintain stable
market.

Packaging Technology:

Milk was initially sold door-to-door by the local milk man. 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 Rs.5-7 compared to plastic pouches, in 1999-00 Nestle
launched its UHT milk market is expected to grow at range of more than 10-12% in coming years.
CHANGING PATTERN OF THE INDUSTRY

The demand for milk and milk products in the country is on the rise. The increase in purchasing
power and pace of urbanization is leading to a change in the lifestyle and consumption habits of the
households. The current trends indicate that 44% of the total population will definitely lead to an
increase in consumption of dairy products.

The domestic market for butter and ghee is growing at a healthy rate of over 10% per annum
but the same may not be true in case of an international market. The production and export of
butter has witnessed a major decline in some of the developed countries. The situation is now
alarming to the industries which are having international market for this product. These companies
definitely have to think about other potential products that are gaining steady growth all over the
world.

STRATEGIES TO BOOST INDIAN DAIRY PRODUCTS GLOBALLY

• Improve the quality of the products.

• Value addition into widely accepted products.
• Improving productivity and improving the cost of production.
• Building brands.
• Public relations and stick measures to avoid misinformation, viz.
• To maintain lead in milk production.
• Research and development.
• Utilization of desirable constituents from the waste rather than draining.
FUTURE ASPECTS

The invariable growth of milk production in India has made its position envious to the other
nations. The proper utilization of milk in the right products and direction will definitely be helpful in
realizing the growth potential of dairy industry. A more systematic approach to process innovation,
quality assurance and shelf life improvement for the indigenous and western dairy products in
needed

COMPANY PROFILE

Date of establishment : 05-06-1992

Revenue : 348.278 (USD in millions)

Market cap : 12209.6337(Rs. millions)

Corporate Address : 6-3-541/c, Panjagutta, Hyderabad-

500082,

Telangana.

Management Details : Chairperson – D Seetharamaiah

MD – N Bhuvaneshwari

: Directors – Rajesh takur, N brahmani,

V Nagaraju Naidu, N Sri Vishnu Raju

Business Operation : Consumer food

Financials : Total income Rs. 20799.931 million

(year ending Mar 2017)

: Net profit – Rs156.76 million (year

ending mar 2017)

Company secretary : Umakanth Barik

Bankers : ICICI Bank, Bank of Baroda, ADB

 Auditors : Raju & Prasad

Heritage foods limited (HFL) was incorporated under the companies Act 1956 as a public
limited companies 5th June 1992. The promoters have long and varied experience in administration
as well as management of business.

HFL entered the capital market on 17th November 1994 with an issue of 65,00,000 equity
share of Rs.10/- each for cash at par to the India investing public. The Issue was over – subscribed by
about 54 times, an indication of the rich confidence of the promoter who enjoy with the investing in
community.

The public issue aggregating to Rs.65 million was intended to part-finance the company’s
integrated dairy product costing a total of Rs.147.50 million, which has been fully implemented.

HFL is currently in the business of procuring milk from dairy farmers, chilling, pasturing and
packaging the same for marketing to consumers in the metropolitan city of Chennai and other cities
are Bangalore, Hyderabad and Visakhapatnam in South India. The company has already established
3 more centers in North Arcot district of Tamilnadu. A process plant is also being established at
Bangalore city which is one of the biggest markets for liquid milk.

The market share of Heritage Foods Limited is cow ghee 30% in Tamilnadu. 5% in Andhra
Pradesh and 15% in Kerala nil percentage in Karnataka. In case of Milk 30% share in Chennai from
private dairy and 10% market share having from corporation.

The company Managing Director is Mrs. N. Bhuvaneswari. It is having mainly 6 branch offices
and 14 sub-plants. The Head office of HFL is at Hyderabad (AP).
THE FOUNDER

Sri NARA CHANDRA BABU NAIDU

Heritage Foods (India) Limited, India

Sri Chandra Babu Naidu is one of the greatest Dynamic, Pragmatic, Progressive and Visionary
Leaders of the 21st Century.

With an objective of "Bringing prosperity into the rural families through co-operative
efforts", he along with a few like minded, friends and associates promoted "Heritage Foods" in the
year 1992 taking opportunity from the Industrial Policy, 1991 of Government of India and he has
been successful in his endeavor. At present, Heritage has market presence in the states of Andhra
Pradesh, Karnataka, Kerala, Tamil Nadu and Maharashtra. More than three thousand villages and
three lakh farmers are being benefited in these states. On the other side, Heritage is serving millions
of customers needs, employing more than 3500 employees and generating indirect employment
opportunities to more than 10000 people. Beginning with a humble annual turnover of Rs.4.38
crores in 1993-94, the sales turnover has reached close to Rs.3824.70 crores during the financial year
2016-2017.

Sri Chandra Babu Naidu was born on April 20, 1951 in Naravaripally Village, Chittoor District,
Andhra Pradesh, India. His late father Sri N. Kharjura Naidu was an agriculturist and his late mother
Smt. Ammanamma was a housewife. Mr. Naidu had his school education in Chandragiri and his
college education at the Sri Venkateswara Arts College, Tirupati. He did his Masters in Economics
from the Sri Venkateswara University, Tirupati. Sri Naidu is married to Ms. Bhuvaneswari D/o Sri N T
Rama Rao, Ex-Chief Minister of Andhra Pradesh and famous Star of Telugu Cinema. Mrs. N
Bhuvaneswari is presently the Vice Chairman & Managing Director of Heritage Foods (India) Limited.

Mr. Naidu held various positions of office in his college and organized a number of social
activities. Following the 1977 cyclone, which devastated Diviseema taluk of Krishna district, he
actively organized donations and relief material from Chittoor district for the cyclone victims. Mr.
Naidu has been evincing keen interest in rural development activities in general and the upliftment
of the poor and downtrodden sections of society in particular.
 Sri Naidu held various coveted and honorable positions including Chief Minister of Andhra
Pradesh, Minister for Finance & Revenue, Minister for Archives & Cinematography, Member of the
A.P. Legislative Assembly, Director of A.P. Small Industries Development Corporation, and Chairman
of Karshaka Parishad.

Sri Naidu has won numerous awards including " Member of the World Economic Forum's
Dream Cabinet" (Time Asia), "South Asian of the Year " (Time Asia), "’Business Person of the Year "
(Economic Times), and " IT Indian of the Millennium "

(India Today).

Sri Naidu was chosen as one of 50 leaders at the forefront of change in the year 2000 by the
Business Week magazine for being an unflinching proponent of technology and for his drive to
transform the State of Andhra Pradesh.
MISSION & VISION

Mission

Bringing prosperity into rural families of India through co-operative efforts and providing
customers with hygienic, affordable and convenient supply of " Fresh and Healthy " food products.

Vision

To be a progressive billion-dollar organization with a pan India foot print by 2012.

To achieve this by delighting customers with "Fresh and Healthy" food products, those are a
benchmark for quality in the industry.

We are committed to enhanced prosperity and the empowerment of the farming

community through our unique "Relationship Farming" Model.

To be a preferred employer by nurturing entrepreneurship, managing career aspirations and

providing innovative avenues for enhanced employee prosperity

The Beginning

Beginning with a humble annual turnover of just Rs.4.38 crores in 1993-94, the sales turnover
has crossed Rs.346.33 crores during the financial year 2006-2007. Taking off with its flagship
processing plant at Chittoor, Andhra Pradesh in April 1993, Heritage spread its wings during the
years hence.

To raise resources, Heritage went public in November 1994. This Public issue was
oversubscribed 54 times a moving testimony to the level of confidence the investing public reposed
in the promoters and in the management of the venture.
 Under the able guidance of eminent people like Sri D Seetharamiah, Dr N R Sivaswamy, Dr A
Appa Rao, Sri N P Ramakrishna, Smt N Bhuvaneswari and Dr V Nagaraja Naidu, the Directors,
Heritage continued to embark on its ambitious phase of expansion.

The directors with their varied & extensive and experience in the fields of Agriculture,
Industry and Finance and their intimate understanding of the rural socioeconomic scenario have
been able to strengthen the systems and strategies of Heritage, which contributed to the current
status of Heritage as a leading player in South India.

HFL entered the capital market on 17th November1994 with an issue of 65,00,000 equity
share of Rs.10/- each at par to the India investing public. The Issue was over-subscribed by about 54
times, an indication of the rich confidence of the promoter who enjoy with the investing in
community.

Investors

Listed with: Stock code

The Stock Exchange, Mumbai 519552

National Stock Exchange of India Limited HERITGFOOD

Compliance Officer:

Mr. umakanth barik

Company Secretary

Phone: (091) 040-23391221/23391222

Fax: (091) 040-23318090

E-mail: umakanthbarik@heritagefoods.co.in
Our commitments
Milk Producers
Change in life styles of rural families in terms of

•• Regular high income through co-operative efforts

•• Women participation in income generation

•• Saved from price exploitation by un-organized sector

•• Remunerative prices for milk

•• Increase of milk productivity through input and extension activities

•• Shift from risky agriculture to dairy farming

•• Financial support for purchase of cattle; insuring cattle

•• Establishment of Cattle Health Care Centers

•• Supplying high quality Cattle feed

•• Organizing "Rythu Sadasu" and Video programmers for educating the farmers in dairy
farming

Customers:

• • Timely Supply of Quality & Healthy Products

• • Supply high quality milk and milk products at affordable prices

• • Focused on Nutritional Foods

• • More than 4 lakh happy customers

• • High customer satisfaction

• • 24 hours help lines (<10 complaints a day)

Employees:

• • Enhancing the Technical and Managerial skills of Employees through continuous training
and development

• • Best appraisal systems to motivate employees

• • Incentive, bonus and reward systems to encourage employees

• • Heritage forges ahead with a motto "add value to everything you do"
 Shareholders:
Returns

• • Dividend Payment since Public Issue (January 1995)

suppliers:
Daehler: technical collaboration in Milk drinks, yogurts drinks and fruit flavored drinks Alfa-
Laval: supplier of high-end machinery and technical support Focusing on Tetra pack
association for products package.

Society:

• Potential Employment Generation

• • • more than 3800 employees are working with heritage

• • • more than 8900 procurement agents got self employment in rural areas

• • • more than 5300 sales agents associated with the company

Producing highly health conscious products for the society

EXCELLENCE IN QUALITY

Quality Policy:

We are committed to achieve customer satisfaction through hygienically processed and

packed Milk and Milk Products. We strive to continually improve the quality of our products and
services through up gradation of technologies and systems.

Heritage's soul has always been imbibed with an unwritten perpetual commitment to itself,
to always produce and provide quality products with continuous efforts to improve the process and
environment.

Adhering to its moral commitment and its continuous drive to achieve excellence in quality
of Milk, Milk products & Systems, Heritage has always been laying emphasis on not only reviewing &
re-defining quality standards, but also in implementing them successfully. All activities of Processing,
Quality control, Purchase, Stores, Marketing and Training have been documented with detailed
quality plans in each of the departments.

Today Heritage feels that the ISO certificate is not only an epitome of achieved targets, but
also a scale to identify & reckon, what is yet to be achieved on a continuous basis.

Though, it is a beginning, Heritage has initiated the process of standardizing and adopting
similar quality systems at most of its other plants.

BOARD OF DIRECTORS

CA D Seetharamaiah, Non-Executive Independent Chairman

Smt N Bhuvaneswari, Vice Chairman & Managing Director

Sri N P Ramakrishna, Independent Director

Dr N R Sivaswamy, Independent Director

Dr A Appa Rao, Independent Director

Dr V Nagaraja Naidu, Director

Company Secretary: Mr. Umakanta Barik

Company Senior Executives

Dr M Sambasiva Rao, President

Sri N Lokesh, Vice President

CA Prabhakara Naidu, Vice-president - Finance & Accounts

Company Locations
Corporate and red. Office : Punjaguta, Hyderabad

Main Dairy Plant : Tirupathi (Chandragiri)

Procurements and processing centers:

• Atmakur Madanapally
• Madhira barsi
• Muppavaram brahmanapalli
• Piler
• Salthamagulure
• Tiruvannamalai(TN)
Procurement processing and Packing stations:

• Bangalore(KN) batripoli
• Bayyavaram(AP) narketpalli
• Chittoor(AP)

Regional Office

Sales offices:

• Hyderabad
• Narketpalle
• Vizag
• Bangalore(KN)
• Mysore(KN)
• Chennai(TN)
• Madurai(TN)

Plants under construction

 • Addanki
• Nandyal
• Tirupathi
• Namakkal

Competitors

• Milk Food Ltd

• Shah Foods
• Super Bakers (India) Ltd

PRODUCT PROFILE

Heritage Milk a naturally nutritive, rich, fresh, wholesome food par excellence which self-
contained protective food characteristic. Hygienically procured, pasteurized and poly packed under
PEA standards, Heritage milk is a complete food for any age be it children Teenagers, adults,
expecting mother as older citizens, rich with just about all essential nutrients.

Heritage Milk is full of strength building calcium and phosphorus, And the essential life-
giving vitamins. The milk products of heritage dairy.

The milk products of dairy are as follows;

• Ghee
• Skimmed milk powder
• Butter milk
• Curd
• Toned milk
• Double toned milk
• slim milk

Marketing of Milk and it’s by Products:

One of the most crucial links in the marketing of milk and products is that it is highly
perishable commodity. It cannot be stored in its original state for more than four hours and
therefore drilling and packing is required for increasing its keeping quality. Further it is chemical
saving gat solids and also essentially proteins minerals vitamins and water Ans its main ingredients;
therefore, it can be suitably converted into butter, ghee and milk powder and reconverted into milk,
when required. Thus, these things will be kept in main while planning effective marketing linkage.

Milk:

Heritage Milk…naturally nutritive, rich, fresh, wholesome food par excellence with self
contained protective food characteristics. Hygienically procured, pasteurized and poly packed under
PFA standards, Heritage Milk is a complete food for any age, be it children, teenagers, adults,
expecting mothers or older citizens. Rich with just about all essential nutrients… Heritage Milk is full
of strength building protein, energy giving carbohydrates &fats, bone & teeth building calcium &
phosphorus and the essential life giving vitamins.

Curd:

• Aroma, freshness ‘n’ purity kept intact!!

• Robotics natural Dairy Food Preparation from double toned milk:
• A new generation health promoting food with improved nutritional benefits due to the
presence of viable enterobacterium tactics & lactobacillus acidophilus.

Ghee:
 Agmark special grade Heritage Ghee is pure clarified fat made from fresh cream, with no
colors or preservatives, tantalizing the human senses with its environing taste, fragrant aroma, rich
texture. And vitamins A, D, E and K as bonus

Butter Milk:

• Aroma, freshness ‘n’ purity kept intact!!

• High quality butter milk with natural taste.

Flavored Milk:

Nutritional Information

200ml Contains Approx

Fat : 3.0g

Proteins : 6.6g

Carbohydrates : 26.0g

Minerals : 1.5g

Energy : 157k.cal

Skim Milk Powder:

Heritage Skim Milk Powder is a low fat & calorie, high protein spray dried milk powder made
from fresh skimmed milk that instantly dissolves in lukewarm water, and tastes just like milk!! With
clean, rich, sweet and very pleasant natural milk flavor, it flows fine and smooth and is
homogeneous in texture.

Variety and Composition

Variety Pack size

Whole milk 500ml

Homogenized Toned Milk 200ml,500ml,1000k

Standard milk 500ml

Double Toned Milk 500ml

Golden cow milk 500ml

Each 500ml of Heritage Milk Contains

Fat -- 3.0%

SNF -- 8.5%

Each 200ml of Heritage Milk Contains

Fat -- 7.5gms

Lactose -- 12.0gms

Proteins -- 8.25gms

Calcium -- 312.5mg

Energy -- 148.5k.cal
 CHAPTER 3

RESEARCH METHODOLOGY
RESEARCH METHODOLOGY

Research is a ‘careful investigation or inquiry especially through research for new facts in any branch
of knowledge.

OBJECTIVES OF STUDY –

Broad objective:

To understand the Consumer behaviour of Heritage Foods Limited.

Specific Objectives:

• To understand the market and the competitors.

• To analyze the findings and suggestions for the study.

SCOPE OF THE STUDY –

• Helps to know the customers interests and help them to make aware about the Heritage
products.
• Helps to understand more about the products and even the ingredients used.
• Helps to understand more about the industry, competitors.
• Understanding the customer buying behaviour and how to make them aware about the
products.
• Helps to understand the customer segments and their needs.

LIMITATIONS OF THE STUDY –

As limitations are the mandatory part of any project, this project is also not an exception to this. The
study is subjected to the following limitations-

• The study is based on the data gathered by me and a bit from the company profile, so the
limitations of the company are equally applicable.
• Data is collected from the company website and discussion with the team, and my
personal observation.
• There are a lot of things which I am not supposed to share as instructed by our team
lead.

AIM OF THE STUDY –

To study the Consumer awareness of Heritage Foods Limited.

TYPE OF RESEARCH –

The type of research used to generate this project is:

Qualitative Research:

It represents collecting, analyzing and interpreting data by what people say and do. It refers to the
meanings, definitions, characteristics, symbols, metaphors and description of things. It is much more
subjective and uses very different methods of collecting information, mainly individual, in-depth
interview and focus groups. It generates mainly non-numerical data and focuses on gathering of
mainly verbal data rather than measurements. Gathered information is then analyzed in an
interpretative manner, subjective, impressionistic or even diagnostic. The nature of this type of
research is exploratory and open-ended.

I did qualitative research in this project and the method used to collect information was informal
discussion with my team.

RESEARCH DESIGN –

Research design specifies the methods and procedures for conducting a particular study. A research
design is the arrangement of conditions for collection and analysis of data in a manner that aims to
combine relevance to their search purpose with economy in procedure.

Research design is broadly of 3 types:

• Exploratory Research Design

• Descriptive Research Design
• Explanatory Research Design
Exploratory Research Design: It has the following characteristics:

• Gather preliminary information.

• Define problem with more clarity.
• Use of secondary data and qualitative research.
Those studies which are concerned with describing the characteristics of particular subject. It is
defined as the initial research into a hypothetical or theoretical idea. This is where a researcher has
an idea or has observed something and seeks to understand more about it. An exploratory research
project is an attempt to lay the groundwork that will lead to future studies, or to determine if what
is being observed might be explained by a currently existing theory. In this project, exploratory
research method is used.

DATA COLLECTION METHOD –

The data has been collected from both the sources primary and secondary sources to generate the
project.

Primary Data: Primary data means data that are collected by different techniques like questionnaire,
Depth interview, Process of observation, Survey, etc. In this project, primary data has been collected
through informal discussion with professionals and observations made while being on field and
interacting with the customers in a regular manner.

Secondary Data: Secondary data means data are available i.e. they refer to the data which have
already been collected and analyzed by someone else. The secondary data involved in this project
has been gathered from websites, internets and going through the company websites and other
relevant sources.

Personal Observation: I observed whether people are aware about the Heritage products. And I
have closely observed the customer buying behaviour and even tried to understand why such things
happen. And I have even conducted a survey by distributing questionnaire and asked them to fill,
which made me easy to understand how is the buying behaviour of the prople.
 CHAPTER 4:

DATA ANALYSIS AND INTERPRETATION

TABLE – 4.1

SIZE OF THE FAMILY TO CONSUMERS PURCHASING MILK

 Size of the Family Number of Respondents Percentage (%)

2 Persons 30 18.75

3 Persons 45 28.12

4 Persons 60 37.06

Above 4 Persons 25 15.62

Total 160 100

CHART - 4.1

NO. OF RESPONDENTS

40 37.05
35

30 28.12

25
18.75
20 Percentage
15.62
15

10

0
2 Persons 3 Persons 4 Persons Above 4 Persons

INTERPRETATION:

The above table No 4.1 indicates 37.5 percent of the respondent’s family size is 4 persons,
28.1 percent of the respondent’s family size is 3 persons, 15.62 percent of the family size is above 4
persons and remaining 18.7 percent of the respondent’s family size was 2 persons.
TABLE – 4.2

CONSUMER PREFERENCE TOWARDS VARIOUS MILK

Type of Milk Number of Respondents Percentage (%)

Cow’s milk 30 18.75

Buffalo’s milk 40 25

Packed milk 90 56.25

Total 160 100

CHART - 4.2

RESPONDENTS

60 56.25

50

40

30 25 Percentage (%)

18.75
20

10

0
Cow’s milk Buffalo’s milk Packed milk

INTERPRETATION:

The above table No 4.2 indicates 56.25 percent the respondents prefers packed milk, 25
percent of them prefer buffalo’s milk and remaining 18.75 percent of the respondents prefer cow’s
milk.
TABLE – 4.3

CONSUMERS PREFERENCE TOWARDS QUANTITY OF MILK

Pack Size Number of Respondents Percentage (%)

200ml 26 16

500ml 102 64

1 liter 32 20

Total 160 100

CHART - 4.3

RESPONDENTS

70 64

60

50

40
Percentage (%)
30
20
20 16

10

0
200ml 500ml 1 liter

INTERPRETATION:
 The above table 4.3 indicates that 64 percent of the respondents prefer 500ml packets, 20
percent of them prefer 1-liter packets and remaining 16 percent of the respondents prefer 200ml
pack size.

TABLE – 4.4

RESPONDENTS BRAND AWARENESS TOWARDS HERITAGE MILK

Awareness Number of Respondents Percentage (%)

Yes 110 69

No 50 31

Total 160 100

CHART - 4.4
 RESPONDENTS

80
69
70

60

50

40 Percentage (%)
31
30

20

10

0
Yes No

INTERPRETATION:

The above table No 4.4 observe that 69 percent of the respondents are yes 31 percent are
no of Heritage milk.

TABLE – 4.5

CONSUMER PREFERENCE TOWARDS BRANDED PACKED MILK

 Brand Number of Respondents Percentage (%)

Heritage 160 50

Tirumala 40 12

Balaji 44 14

Sangam 56 17

Others 20 7

Total 320 100

CHART – 4.5

RESPONDENTS

360

300

240
50
180 Percentage (%)

120 17

60 12 14 7

0
Heritage Tirumala Balaji Sangam Others

INTERPRETATION:

The above table No 4.5 observe that 50 percent of the respondents prefer heritage 0milk. 17
percent of the respondents prefer other brands 33 percent
TABLE – 4.6

CONSUMERS USAGE TOWARDS VARIOUS MILK PRODUCTS AT HERITAGE

MILK

Year of Experience Number of Respondents Percentage (%)

Below 6 months 29 18

6 months to 1 years 45 28

1-2 years 49 31

More than 2 years 37 23

Total 160 100

CHART – 4.6

RESPONDENTS

35
31
30 28

25 23

20 18
Percentage (%)
15

10

0
Below 6 months 6 months to 1 years 1-2 years More than 2 years

INTERPRETATION:
 The above table 4.6 indicates that 31 percent of the respondents purchasing from the period
of 1-2 years, 28 percent respondents purchasing from the period of one to 6 months to 1 year, the
period of the more then 2 years above 23 percent.

TABLE – 4.7

FACTORS INFLUENCING TO PURCHASE CURRENT BRAND

Influencing Factors Number of Respondents Percentage (%)

Quality 92 57

Packing 26 17

Price 32 20

Advertisement 10 6

Total 160 100

CHART – 4.7
 RESPONDENTS

60 57

50

40

30 Percentage (%)
20
20 17

10 6

0
Quality Packing Price Advertisement

INTERPRETATION:

The above table No 4.7 indicates that 57 percent of the respondents purchasing heritage
milk was quality, response of Price 20 percent and 16 percent purchasing for packing, 6 percent of
advertisements.

TABLE – 4.8

MEDIA INFLUENCES IN INCREASE THE SALE PROMOTION OF HERITAGE

MILK

Media Number of Respondents Percentage (%)

Hoardings 43 27

Wall posters 15 9

Friends 102 64

Total 160 100

CHART – 4.8
 RESPONDENTS

70 64

60

50

40
Percentage (%)
30 27

20
9
10

0
Hoardings Wall posters Friends

INTERPRETATION:

The above table No 4.8 shows that 64 percent of the respondents knows of Heritage brand
by friends, 27 percent of the respondents know of Heritage milk by hoardings and remaining 9
percent of the respondents know of Heritage by wall posters.

TABLE – 4.9

CONSUMERS OPINION OF COMPARED TO OTHER BRANDS OF MILK

Opinion No. of Respondents Percentage (%)

Thickness 70 44

Brand Image 50 31

Available 30 19
 Price 10 6

Total 160 100

CHART – 4.9

RESPONDENTS

50
44
45
40
35 31
30
25 Percentage (%)
19
20
15
10 6
5
0
Thickness Brand Image Available Price

INTERPRETATION:

The above table No 4.9 shows that 44 percent of the respondents feel that the thickness, 31
percent of the response of brand image, of the respondents available 19 percent of the 6 percent
respondents of the price.

TABLE – 4.10

CONSUMERS SATISFACTION LEVEL OF HERITAGE MILK

Satisfaction Number of Respondents Percentage (%)

Highly satisfied 49 31

Satisfied 96 60
 Neither satisfied nor not 10 6

Highly Dissatisfied 5 3

Total 160 100

CHART - 4.10

RESPONDENTS

70
60
60

50

40
31 Percentage (%)
30

20

10 6
3
0
Highly satisfied Satisfied Neither satisfied nor Highly Dissatisfied
dissatisfied

INTERPRETATION:

The above table No 4.10 indicates that 60 percent the respondents was satisfied; 31 percent
of the respondents were highly satisfied.
TABLE – 4.11

CONSUMERS OPINION OF THE QUALITY OF HERITAGE MILK

Rank of Quality No. of Respondents Percentage (%)

Excellent 83 52

Good 50 31

Average 21 13

Poor 6 4

Total 160 100

CHART - 4.11

RESPONDENTS

60
52
50

40
31
30 Percentage (%)

20
13
10
4

0
Excellent Good Average Poor

INTERPRETATION:

From the above table No 4.11 is inferred that 52 percent of the respondents feel quality was
excellent, 31 percent of the respondents feel good, 13 percent of the respondents feel average and
remaining 4 percent of the respondents feel quality was poor.
TABLE – 4.12

RESPONDENTS OPINION ON MEDIA FOR SALES PROMOTION

Media No. of Respondents Percentage (%)

Hoardings 90 56

News papers 30 19

Radio jingles 25 16

Display broad 15 9

Total 160 100

CHART – 4.12

RESPONDENTS

60 56

50

40

30 Percentage (%)

19
20 16

9
10

0
Hoardings News papers Radio jingles Display broad
INTERPRETATION:

The above table No 4.12 indicates that 56 percent of the respondent’s opinion was
hoardings is the best media and 18 percent go to Newspapers through radio 16 percent through the
display broad 9 percent.

TABLE – 4.13

CONSUMERS OPINION ON PRICING OF HERITAGE MILK

Opinion of Price No. of Respondents Percentage (%)

High 50 31

Very high 26 16

Moderate 84 53

Total 160 100

CHART – 4.13
 RESPONDENTS

60
53

50

40
31
30 Percentage (%)

20 16

10

0
High Very high Moderate

INTERPRETATION:

The above table No 4.13 indicates that 53 percent of the respondents feel that the heritage
price of the milk is moderate of the respondent’s high 31 percent of the respondents very high 16
percent.

TABLE – 4.14

CONSUMERS OTHER PRODUCT OFFERING HERITAGE

Opinion of Product No. of Respondents Percentage (%)

Butter 45 28
 Paneer 21 13

Ghee 58 37

Doodh Peda 36 22

Total 160 100

CHART - 4.14

RESPONDENTS

40 37
35

30 28

25 22
20 Percentage (%)

15 13

10

0
Butter Paneer Ghee Doodh Peda

INTERPRETATION:

The above table No 4.14 indicates that 37 percent of the respondents feel that the heritage
ghee and 28 percent of the respondents of Butter, 22 percent of the respondents.

Table No.4.15
ANALYSIS BASED ON OPINION OF HERITAGE MILK

Opinion No. of Respondent Percentage

Excellent 16 10

Very good 31 20

Good 64 40

Average 31 19

Below average 18 11

Total 160 100

CHART - 4.15

No. of Respondent

Excellent
Very good
Good
Average
Below average

INTERPRETATION:

The above table No 4.15 indicates that the percent of the respondents feel good
31 percent of the respondents of very good, 18 percent of the respondents below average.
Table No.4.16

DO YOU KNOW DIFFERENT PRODUCTS ARE THERE IN HERITAGE:

Products No.of respondents Percentage

Yes 84 53

No 76 47

Total 160 100

Chart 4.16

no.of respondent
percentage

INTERPRETATION:

The above table should respondents of the customer’s opinion most of them should
express know different products in heritage.
 CHAPTER 5

LEARNING EXPERIENCE- FINDINGS, SUGGESTIONS AND

CONCLUSION
FINDINGS

1. It is found that 50% are aware of Heritage milk in compute.

2. 50% of the respondents prefer Heritage milk only remaining respondents prefer other brands.

3. Most of the respondents giving first priority to the quality of the milk, and second priority goes

to price, only very few member purchase milk on the basis of advertisement.

4. Large portion of the respondents are known of Heritage brand through friends, accountable

number of the respondents known of Heritage milk by hoardings and remaining minority of

them known of Heritage by wall posters.

5. Majority of the respondents are satisfied and minority of the respondents are highly satisfied

and considerable number of the respondents neither satisfied nor dissatisfied and, only 3% of

the respondents highly dissatisfied of Heritage milk.

RECOMMENDATIONS

1. Efforts should be made to improve awareness of Heritage products through regular interaction

with end users.

2. Information regarding the manufacturing facilities and the hygienic conditions maintained by

Heritage dairy should be provided to the consumers in the form of attractive pamphlets.

3. Promote and sponsor athletics and sports meets in various colleges and schools by projecting

the Heritage dairy milk mascot. It must cover by local T.V network.

4. Improve the quality, competitive pricing and better packing innovations should be concentrated

by the company to increase sales volume by Heritage milk.

5. The company should conduct meets in flats, colonies and uncovered areas form now for

promoting the brand.

CONCLUSION

After the survey, collection of data and interpretation we have found many aspects about dairy

products as a milk product. We have analyzed how far the consumers are satisfied with the product,

what are the influencing factors for the consumption of the milk. Consumers also plead for quality

milk as they want the product to benefit them when they concerned with the health, the variants

are one of the most fascinating aspect of the product as they come out with something new and in

innovativeness is always involved in it may it be in the product, advertisement, theme song so on.

This study has enabled us to come out with the insights of the product and more importantly

understand the consumer behaviour of the dairy products consumers.

 BIBLIOGRAPHY

Books Referred

• PHILIP KOTLER – “Marketing Management”, 13th edition, Pearson education

• C.R. KOTHARI – “Research Methodology”,2nd edition New Age International P ltd

• G.C. BERI – “Marketing Research” ,3rd edition, TATA MC Grawhil, New Delhi.

WEBSITES:

❖ www.google.com

❖ www.indianmilkfood.com
❖ www.heritagefoods.com
❖ www.heritagefoodsindia.co.in
❖ www.open2. Net
❖ www.slideshare.com
 ANNEXURE

1. No. of Family members: ( )

(i) 2 Persons (ii) 3 Persons

(iii) 4persons (iv) above 4 persons

2.Which Milk do you prefer: ( )

(i) Vendor’s milk (ii) packed milk

1. Which size of pack do you refer: ( )

(i) 500ml (ii) 200ml

(iii) 1litre (iv) Above 2ltrs

4. Do you know Heritage milk: ( )

(i) Yes (ii) No

5.Which brand you would like to use regular: ( )

(i) Heritage (ii) Sangam

(iii) Tirumala (iv) Balaji (v) Dodla

6.Since how long have you been using Heritage milk: ( )

(i) Before 6 months (ii) 6 months to1year

 (iii) 1 to 2years (iv) More than 2years

7.What are the factors that influenced you to purchase Heritage milk: ( )

(i) Quality (ii) Packing looks/styling

(iii) Price (iv) Advertisement

8. Which media do you prepare will increase the sales of Heritage milk: ( )

(i) Hoardings (ii) Wall paintings

(iii) Friends (iv) posters

9. What is your opinion of compared to other brands of milk ( )

(i) Thickness (ii) brand image

(iii) Price (iv) Availability

10. Satisfaction level of Heritage milk: ( )

(i) Highly satisfied (ii) Satisfaction

(iii) Neither satisfied nor dissatisfied (iv) Highly Dissatisfied

11. Opinion on Quality of Heritage milk: ( )

(i) Excellent (ii) Good

(iii) Average (iv) not Bad

12. Which Media do you prefer as a best sales promotion: ( )

 (i) Television (ii) Radio Jingles

(iii)Newspapers (iv) Hoardings

13. Opinion on pricing of Heritage Milk: ( )

(i) Very High (ii) High

(iii) Average (iv) Low

14. Do you know different products are there in Heritage: ( )

(i) Yes (ii) No

15. Have you aware of any other products offering Heritage: ( )

(i) Paneer (ii) Ghee

(iii) Butter (iv) Badam Milk (v) Doodh peda

16. What is your opinion about heritage product? ( )

(i) Excellent (ii) Very good (iii) Good

(iv)Average (v) Below average

17. Specify the occasion when you do buy heritage products? ( )

(i)Normal days (ii)Birthday parties

(iii) Festivals (iv)Memorable moments

18.How frequently do you consume heritage products? ( )

(i) Daily (ii) Once in a week (iii)Twice in a week

(iv) Thrice in a week (v)More than 3times in a week

19. Suggestions for increasing sales? ( )

(i). Gifts (ii) Discounts

(iii) Offers (iv)Lucky draws

20. Any Suggestions Please Specify:

___________________________________________________________________________
___________________________________________________________________________
_________________________________________________________