Sales Promotion

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A STUDY ON SALES PROMOTION AND CONSUMER BEHAVIOR OF AAVIN MILK & MILK PRODUCTS
PROJECT REPORT

Submitted by

SUKUMAR.P Register No: 098001306075

In partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION
IN

DEPARTMENT OF MANAGEMENT STUDIES

NANDHA ENGINEERING COLLEGE ERODE-638052
MAY 2011

BONAFIDE CERTIFICATE

NANDHA ENGINEERING COLLEGE ERODE-638052
Department of Management Studies
PROJECT WORK May 2011

This is to certify that the project entitled

A STUDY ON SALES PROMOTION AND CONSUMER BEHAVIOR OF AAVIN MILK & MILK PRODUCTS
is the bonafide record of project work done by SUKUMAR.P Register No: 098001306075 of MBA during the year 2009-2011
------------------------------------------------------

Project Guide

Head of the Department

Submitted for the Project Viva-Voce examination held on

------------------------Internal Examiner

-------------------------External Examiner

DECLARATION
I affirm that the project work titled A STUDY ON SALES PROMOTION AND CONSUMER BEHAVIOR OF AAVIN MILK & MILK PRODUCTS being submitted in partial fulfillment for the award of MASTER OF BUSINESS MANAGEMENT is the original work carried out by me. It has not formed the part of any other project work submitted for award of any degree or diploma, either in this or any other University.

(Signature of the Candidate)

SUKUMAR.P Register No: 098001306075

I certify that the declaration made above by the candidate is true

Signature of the Guide, Mrs.S.SUDHA, MBA, M.Phill, SLET.,(Phd).,

ACKNOWLEDGEMENT
I take this opportunity in acknowledging some noble hearts for lending their knowledge and time in the successful completion of the project.

I would like to record my sincere thanks and gratitude to our Head of the Department of Management Studies Mr.N.Devaraj, for his kind and warm hearted support throughout the project.

I express my profound sense of gratitude to my project guide Mrs.S.Sudha, for her eminent guidance and sharing the knowledge in each and every part of the project.

I am extremely thankful to all our department staff members.

I extent my heartfelt thanks to Mr.D.Rajarajan., AAVIN COOPERATIVE MILK PRODUCERS, UNION LIMITED. Who gave an opportunity to do the project in such a reputed institution, and who guided me to complete the project in a successful manner.

My hearty thanks to all the bank employees, for their kind co-operation and help during my study.

I am greatly indebted to my parents and friends for their consistent motivation and support.

SUKUMAR.P

TABLE OF CONTENTS CHAPTER NO. List of Tables List of Charts 1 Introduction
1.1 About the study 1.2 Industry profile 1.3 About the company 1 4 7

TITLE

PAGE NO.

2

Main Theme Of The Project
2.1 Objectives of the study 2.2 Scope of the study 2.3 Review of Literature 2.4 Research methodology 2.5 Limitations of the study 13 14 15 18 20

3 4

Data Analysis And Interpretation Findings, Suggestions And Conclusion
4.1 Findings 4.2 Suggestions 4.3 Conclusion 59 61 62

Bibliography Appendix

LIST OF TABLES

TABLE NO.
3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23

NAME OF THE TABLE

PAGE NO.
21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 62 63

Opinion about Gender Opinion about Age Consumer awareness about the product Consumers frequency level of buying Consumer preference towards aavin products Consumers preference towards Quantity Reason for Purchase of products Consumers opinion about Price Level Consumers opinion about Quality Level Consumer Awareness regarding ISI and Agmark standards Consumer Awareness regarding Advertisement Consumers opinion about availability of aavin stall near by area Consumer awareness regarding availability of all aavin products in the stall Consumers purchasing level during the train travel Consumer preferences of aavin stall in railway station Consumer opinion towards the budget level Satisfaction of consumers towards service Opinion of consumers towards package Satisfaction level of consumers towards Freshness Overall satisfaction of consumers compared to other products Gender and Opinion towards the budget level Age and Customer service Influence to know the product and purchase level during train travel

LIST OF CHARTS

TABLE NO.
3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12

NAME OF THE TABLE
Opinion about Gender Opinion about Age Consumer awareness about the product Consumers frequency level of buying Consumer preference towards aavin products Consumers preference towards Quantity Reason for Purchase of products Consumers opinion about Price Level Consumers opinion about Quality Level

PAGE NO.
22 24 26 28 30 32 34 36 38 40 42 44

Consumer Awareness regarding ISI and Agmark standards Consumer Awareness regarding Advertisement Consumers opinion about availability of aavin stall near by area Consumer awareness regarding availability of all aavin products in the stall Consumers purchasing level during the train travel Consumer preferences of aavin stall in railway station Consumer opinion towards the budget level Satisfaction of consumers towards service Opinion of consumers towards package Satisfaction level of consumers towards Freshness Overall satisfaction of consumers compared to other products

3.13

46

3.14 3.15 3.16 3.17 3.18 3.19 3.20

48 50 52 54 56 58 60

ABSTRACT

This project is about ―A STUDY ON CONSUMER BEHAVIOUR AND SALES PROMOTION OF AAVIN MILK & MILK PRODUCTS”. The main objective of the study is to find out the Sales promotion & consumer behaviour of Aavin milk and milk products. The research mainly focuses on the factors like quality, consumer preference, price, service, attitudes and experience of consumers.

In this study, data are collected from the consumers through questionnaire(interview schedule).,200 samples are selected using convenience sampling. Using the interview schedule prepared, the 200 consumers are interviewed personally and their opinion was collected.

Secondary data was collected from the management. The collected data is analyzed using analytical tools like simple percentage and chi-square test. As per the findings, suggestions are given to the company to take initiation to fulfill the consumer needs.

CHAPTER – 1 1.1 Introduction about the study
Sales promotion is an important component of a small business's overall marketing strategy, along with advertising, public relations, and personal selling. The American Marketing Association (AMA) defines sales promotion as "media and nonmedia marketing pressure applied for a predetermined, limited period of time in order to stimulate trial, increase consumer demand, or improve product quality.

A direct inducement that offers extra value or incentive for the product to the Sales force, distributors, or the ultimate consumer with the primary objective of creating "immediate" sales . Sales promotion is any initiative undertaken by an organisation to promote an increase in sales, usage or trial of a product or service (i.e. initiatives that are not covered by the other elements of the marketing communications or promotions mix). Sales promotions are varied. Businesses can target sales promotions at three different audiences: consumers, resellers, and the company's own sales force. Sales promotion acts as a competitive weapon by providing an extra incentive for the target audience to purchase or support one brand over another. It is particularly effective in spurring product trial and unplanned purchases. Most marketers believe that a given product or service has an established perceived price or value, and they use sales promotion to change this price-value relationship by increasing the value and/or lowering the price. Compared to the other components of the marketing mix (advertising, publicity, and personal selling), sales promotion usually operates on a shorter time line, uses a more rational appeal, returns a tangible or real value, fosters an immediate sale, and contributes highly to profitability.

Popular sales promotions activities: (a) Buy-One-Get-One-Free (BOGOF) - which is an example of a self-liquidating promotion. For example if a loaf of bread is priced at $1, and cost 10 cents to manufacture, if you sell two for $1, you are still in profit - especially if there is a corresponding increase in sales. This is known as a PREMIUM sales promotion tactic. (b) Customer Relationship Management (CRM) incentives such as bonus points or money off coupons. There are many examples of CRM, from banks to supermarkets. (c) New media - Websites and mobile phones that support a sales promotion. For example, in the United Kingdom, Nestle printed individual codes on KIT-KAT packaging, whereby a consumer would enter the code into a dynamic website to see if they had won a prize. Consumers could also text codes via their mobile phones to the same effect. (d) Merchandising additions such as dump bins, point-of-sale materials and product demonstrations. (e) Free gifts e.g. Subway gave away a card with six spaces for stickers with each sandwich purchase. Once the card was full the consumer was given a free sandwich. (f) Discounted prices e.g. Budget airline such as EasyJet and Ryanair, e-mail their customers with the latest low-price deals once new flights are released, or additional destinations are announced. (g) Joint promotions between brands owned by a company, or with another company's brands. For example fast food restaurants often run sales promotions where toys, relating to a specific movie release, are given away with promoted meals. (h) Free samples (aka. sampling) e.g. tasting of food and drink at sampling points in supermarkets. For example Red Bull (a caffeinated fizzy drink) was given away to potential consumers at supermarkets, in high streets and at petrol stations (by a promotions team). (i) Vouchers and coupons, often seen in newspapers and magazines, on packs. (j) Competitions and prize draws, in newspapers, magazines, on the TV and radio, on The Internet, and on packs.

(k) Cause-related and fair-trade products that raise money for charities, and the less well off farmers and producers, are becoming more popular. (l) Finance deals - for example, 0% finance over 3 years on selected vehicles. Many of the examples above are focused upon consumers. Don't forget that promotions can be aimed at wholesalers and distributors as well. These are known as Trade Sales Promotions. Examples here might include joint promotions between a manufacturer and a distributor, sales promotion leaflets and other materials (such as T-shirts), and incentives for distributor sales people and their retail clients. Sales promotion describes promotional methods using special short-term techniques to persuade members of a target market to respond or undertake certain activity. As a reward, marketers offer something of value to those responding generally in the form of lower cost of ownership for a purchased product (e.g., lower purchase price, money back) or the inclusion of additional value-added material (e.g., something more for the same price).

Objectives of Sales Promotion
Sales promotion is a tool used to achieve most of the five major promotional objectives : Building Product Awareness – Several sales promotion techniques are highly effective in exposing customers to products for the first time and can serve as key promotional components in the early stages of new product introduction. Additionally, as part of the effort to build product awareness, several sales promotion techniques possess the added advantage of capturing customer information at the time of exposure to the promotion. In this way sales promotion can act as an effective customer information gathering tool (i.e., sales lead generation), which can then be used as part of follow-up marketing efforts. Creating Interest – Marketers find that sales promotions are very effective in creating interest in a product. In fact, creating interest is often considered the most important use of sales promotion. In the retail industry an appealing sales promotions can significantly increase customer traffic to retail outlets. Internet marketers can use similar approaches to bolster the number of website visitors. Another important way to create interest is to move customers to experience a product.

Providing Information – Generally sales promotion techniques are designed to move customers to some action and are rarely simply informational in nature. However, some sales promotions do offer customers access to product information. For instance, a promotion may allow customers to try a fee-based online service for free for several days. This free access may include receiving product information via email. Stimulating Demand – Next to building initial product awareness, the most important use of sales promotion is to build demand by convincing customers to make a purchase. Special promotions, especially those that lower the cost of ownership to the customer (e.g., price reduction), can be employed to stimulate sales. Reinforcing the Brand – Once customers have made a purchase sales promotion can be used to both encourage additional purchasing and also as a reward for purchase loyalty (see loyalty programs below). Many companies, including airlines and retail stores, reward good or ―preferred‖ customers with special promotions, such as email ―special deals‖ and surprise price reductions at the cash register.

CONSUMER BEHAVIOUR: Consumer behavior is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products); The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media); The behavior of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome; How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and

How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. There are four main applications of consumer behavior: The most obvious is for marketing strategy—i.e., for making better marketing campaigns. For example, by understanding that consumers are more receptive to food advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon. By understanding that new products are usually initially adopted by a few consumers and only spread later, and then only gradually, to the rest of the population, we learn that (1) companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) it is important to please initial customers, since they will in turn influence many subsequent customers’ brand choices. A second application is public policy. Social marketing involves getting ideas across to consumers rather than selling something. As a final benefit, studying consumer behavior should make us better consumers.

Benefit of Studying Consumer Behavior
The benefits of studying consumer behavior have significant bearing on marketing and public relations decisions. Studies focusing on consumer behaviors yield important information and insight into what consumers are thinking. With these insights, marketing and public relations firms may enhance their particular marketing campaigns to successfully connect with consumers. 1. Perceptions Studying consumer behavior helps marketers understand consumer perceptions about a particular product or range of products. Uncovering and correcting erroneous perceptions about a particular product may give marketers an additional competitive advantage over competitors.

2. Attitudes Consumer attitudes very often determine consumer beliefs about certain products. Discovering consumer attitudes allows marketers to fine tune their campaigns to resonate with a particular consumer niche and deepen marketing reach.

3. Cultures
Changing population demographics around the world affect the way marketing campaigns are designed. Understanding cultural nuances and subtleties may allow marketers to help further define their particular target market.

4. Lifestyles
Consumer lifestyles also determine what products appeal to certain consumer markets. Understanding consumer lifestyles is also a key component of consumer behavior that lets marketers make the appropriate appeals in promoting lifestyle products and further consumption of lifestyle products.

5. Experience
Like consumer attitudes, experience also colors consumer responses to certain products. By studying consumer behavior, marketing professionals can tap into consumer experiences with similar products to promote consumption and gain competitive advantage over competitors.

1.2 INTRODUCTION ABOUT THE INDUSTRY
Dairy Development in India has been acknowledged the world over as one of the most successful development programme. India is the second largest milk producing country with the The milk surplus States in India are Uttar

production about 78 million tons during 1999 – 2000.

Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharastra, Andhra Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk products is concentrated in these milk surplus States. Dairy sector has assumed a great significance by generating income not only to the rural but also to the urban and semi-urban population in the state especially to the women folk by providing self employment opportunity. Milk and milk products provides essential nutrition to all walks of life. It provides the main source of income next to agriculture. In a tropical country like India, agriculture may fail sometimes, due to monsoon failure but dairying never fail and gives them regular, steady income. The state Dairy Development was established in 1958. The Administrative and statutory controls over the entire milk cooperative in the State were transferred to the Dairy Development on 01.08.1965. The Commissioner for the Milk Production and Dairy Development is the functional registrar under the Tamilnadu Co-operative Societies Act 1983. With the advent of ―Anand Pattern‖ in Tamil Nadu, Tamil Nadu Co-operative Milk Products Federation limited was registered on 1st February 1981 as the State level organization. The commercial activities of the department such as procurement, processing, packing and the sale of milk and milk products within and outside the State was entrusted to the Tamil Nadu Co-operative Milk Producer’s Federation ltd. In the wake of the liberalization policy, private dairies have entered in the field of dairying. As per the direction of the National Dairy Development Board and Government of Tamil Nadu high priority has been given for improving the performance of Co-operative by adopting a systematic approach and proper strategy implementation in milk co-operatives. Significant achievement ha been made by Milk Producer’s Co-operative Societies, Unions and Federation in the state of Tamilnadu.

TWO FOLD OBJECTIVES OF THE DAIRY DEVELOPMENT DEPARTMENT  Assure a remunerative price of the milk produced by the milk producer’s societies through a stable, steady and well market support.  Distribution of quality milk and milk products at reasonable price to the consumers.

FUNCTIONS OF THE DAIRY DEVELOPMENT DEPARTMENT The main functions of the Dairy Development Department are organization of societies, registration of societies, supervision and control of primary Milk Co-operative, District Co-operative Milk Producers Union and Tamil Nadu Co-operative Milk Producer’s Federation. The Dairy Development Department exercise statutory functions like enquiry, inspection, surcharge and super session, appointment of special officers, liquidation and winding up of societies etc. The Commissioner for milk production and Dairy Development, Deputy Milk Commissioner (Cooperative) and circle Deputy Registrars are vested with quasi-judicial power in respect of settlement of dispute, appeal, revision and review under various provisions of Tamil Nadu Co-operative societies Act 1983 and rule 1988 made there under.

1.3 INTRODUCTION ABOUT THE COMPANY
The Erode District Co-operative Milk Producers Union limited is a replica of the District Union in Gujarat state based on the ―AMUL‖ system. The Erode Milk Union is therefore sandwiched in the middle of the 3-tier system popularly known as ―ANAND‖ or ―AMUL‖ pattern consisting of an apex State Level Federation at Chennai, the Union at the District level and the primary Co-operative Societies at the village level. The entire project had been funded by the National Dairy Development board, Anand through the government of Tamilnadu and the Tamilnadu Co-operative Milk Producer’s Federation. The project had been funded under the nationwide operation flood programme with an aim to bring about a socioeconomic awakening in rural India. The district union has 728 primary Milk Co-operative at its base and the Tamil Nadu Cooperative Milk Producer’s Federation as its apex body. Special features of the Company Weekly four rail milk tankers of about 16000 liters of condensed milk is supplied to Mother Dairy, Delhi from the Erode Dairy.  On an average 80,000 litres of raw chilled milk is supplied for Chennai metro sales from Erode Dairy.  Milk products like Butter, Ghee, Skimmed milk powder, Milk Peda, Dates khova, Flavoured milk, Butter milk, Badam milk powder, Ice cream are produced at Erode Dairy and selling to customers according their requirements.  The company is an ISO 9001 – 2000 certified and ISI certified for the skimmed milk powder production and the Erode Dairy ghee is sold with AGMARK certificate.  National wide database laboratory established at Erode District out of 15 milk producers union selected by National Dairy Development Board in India.  Union is selling ghee to Thiruppathi Thirumala Devasthanam in tankers for Laddu preparation.

Functions of district cooperative milk producers union   Establishment of chilling centers Formation of new milk routes to collect the milk produced by the member societies  Collection of milk form societies, process and pack in modern Dairy plant by maintaining quality standards      Fixation of procurement and selling price of milk Increase of milk sales by introducing innovative sales promotion activities Supply of inputs to the member societies obtained from unions Erode union is acting as a feeder balancing Dairy The union spends 154.42 lakhs, 169 lakhs, 187.74 lakhs, 219.28 lakhs for marketing for the past five years, which includes transport and agents commission.   The union spends 1.20 lakhs, 3 lakhs for advertisement. To provide artificial insemination and veterinary aid facilities to the milk producers.

CHAPTER-2 2.1OBJECTIVES OF THE STUDY
Primary objective:  The main objective of the study is to study the Sales promotion & consumer behaviour of Aavin milk and milk products in Erode town Secondary objective:   To identify the sales promotion strategies adopted by the aavin milk company To study the quality and consumer preferences towards aavin milk& milk products. To identify the satisfaction level of customers towards the price & service provided by the company. To study the attitudes and experience of customers towards aavin products and to suggest the valuable measures based on the findings.





2.2 SCOPE OF THE STUDY
The scope of the study is to identify and analyse the consumer behavior towards the service, price & quality of aavin milk & milk products and also to analyse the sales promotional strategies adopted by the company.This study will help the organization to increase the sales of the Aavin milk and milk products and to strengthen the sales promotion strategies.

2.3 REVIEW OF LITERATURE
Ketelaar, et al., (2001), As the flow of online sales increases and more companies begin to move into the digital arena, advertisers and digital designers are forced to stay on the cutting edge in terms of website design and content presentation. In a search to find website design techniques that increase information flow and website stickiness, two possibilities were found, persuasive navigation and "open", or visually rhetorical, online advertising. These two techniques focus on presenting targeted information to consumers, in the form of website content advertisements, while they browse a given website. Bright (2004) , The concept of intra-site advertising was tested by him and was found to be effective in terms of increasing information flow on a controlled website. Open advertising has not yet been tested in the online environment, with current studies focusing on print media, however it presents promises potential as an online persuasion technique. This paper will further explore the application of open advertising in the online context as well as elements of interactivity and design. (Zakon, 2002) says that the Web has come to encompass some 38 million plus websites. It is a tossup as to whether any of these websites effectively communicate with their target audience in a manner that is both user-friendly and efficient in terms of brand impact and sales. As most consumer advocates have come to know, digital environments that frustrate users dramatically decrease brand loyalty and can cause consumers to completely abandon a brand community in both real and virtual worlds. In an effort to stem off this flow of frustration, two new digital design techniques provide an intriguing way to increase information flow within digital environments while providing imagery and content that makes users feel intelligent and engaged. These new design techniques are persuasive navigation and open online advertising, respectively. One technique deals with the information architecture of the website, while the other addresses imagery; both in an equally seductive fashion.

Kioumarsi et al.,(2009),says that Personality characteristics impact consumer behavior because they shape the way in which consumers respond to messages at a given time. This response changes minute to minute based upon the unique characteristics of the target consumer and their ongoing life experience. The online environment presents a vast opportunity for companies to interact with consumers on a personal, customized level. Individual differences are an important aspect of this interaction as they provide insight into how people with varying levels of experience with the online environment respond to interactive persuasion techniques. Friestad and Wright (1994), in their presentation of the PKM, posit that the effectiveness of advertising persuasion techniques depends upon the level of persuasion expertise each individual possesses. In an online environment, measurement of this effect can be achieved by looking at user experience levels, self efficacy, and number of hours spent online. General knowledge gleaned from the PKM dictates that consumers with more experience in the online environment will be better at coping with persuasion techniques therein, such as open, visually rhetorical advertisements. Ketelaar et al(2004) conducted the study that an individual's need for cognition refers to their motivation to engage in meaningful cognitive thought or undertaking. A consumer's need for cognition will impact their ability to deal with tasks and social settings, such as responding to advertising messages or calls to action. This applies directly to the concept of open, visually rhetorical advertising because such messages require a higher cognitive processing load to be understood and learned. Although need for cognition was not found to impact interpretations of open advertisements in the Ketelaar et al. study, it is still an

interesting variable that can be effectively measured and manipulated for this type of research endeavor. Additionally, cognitive response, and the need therein serve an important part in the development of brand attitudes within a target consumer.

McGinnis and Jaworski (1989) ,The concept was elaborated upon by in their seminal piece regarding information processing in advertising: "Cognitive and emotional responses related to imagined product consumption experiences are the strongest determinants of brand attitude. As shown, need for cognition is linked to the development of brand attitude in consumers. When examined in terms of its relationship to time spent processing online, visually rhetorical advertising, need for cognition could prove to be an interesting differentiator within the sample group. In addition to need for cognition, an internal motivation toward the product being advertised should be apparent within driven consumers. This motivation helps push the consumer toward unraveling the visual riddle presented in an open advertisement. Type of motivation, either utilitarian ("goal-oriented") or hedonic ("expressive"), is a diverse and interesting factor to analyze across consumer groups. Phillips (2000) shown in research undertaken by, consumers with utilitarian, goaloriented motivations are keen on evaluating product attributes and therefore less likely to be attracted to open advertisements. Consumers with hedonic or "expressive" goals are more likely to seek out the entertainment value in the open advertisement. Huang (2003), in his online study of websites, found that level of attention in consumers is most linked to utilitarian design while both control and interest are linked to hedonic performance measures. Liu, et al (2002), based on their online research, concluded that higher levels of active control within consumers resulted in being geared towards more utilitarian, goal-based website designs. As shown in these studies, motivation is an individual difference worth characterizing. Type of consumer motivation is extremely important when analyzing online consumer behavior as it helps categorize amongst user groups, across sites.

2.4 RESEARCH METHODOLOGY
RESEARCH DESIGN The research design chosen is descriptive as the study reveals the state of facts existing. Descriptive research design: Descriptive research studies are those studies which are concerned with describing the characteristics of a particular individual, or a group. The study is concerned whether certain variables are associated with the study. And also the study is concerned with specific predictions, with narration of facts and characteristics concerning an individual, group or situation.

METHODS OF DATA COLLECTION: While deciding about the method of data collection for the study the researcher should keep in mind the two types of data collection.

Primary Data: Data has been collected from few respondents by communicating with them directly and discussing their views about the organization. Most of these included informal discussion with the employees. One of the other sources of collecting the primary data was by distributing the questionnaires and getting back the responses for them. Such questionnaires were distributes among the production employees and also the executive level employees.

Secondary Data: Secondary data has been collected from the following sources:  Books and journals at the organization and the college library.  Through the internet.

SAMPLING: Sampling is that part of statistical practice concerned with the selection of individual observations intended to yield some knowledge about a population of concern, especially for the purposes of statistical inference. Convenience sampling: Convenience sampling is a type of nonprobability sampling which involves the sample being drawn from that part of the population which is close to hand. That is, a sample population selected because it is readily available and convenient. It may be through meeting the person or including a person in the sample when one meets them or chosen by finding them through technological means such as the internet or through phone. Sample Size The size of the sample selected for study is 200 units. DATA ANALYSIS Collected primary and secondary data are scheduled to suitable table for the purpose of analysis. Suitable statistical tools were applied in various places for analysis. TOOLS FOR DATA ANALYSIS

The collected data have been analyzed with the help of tools like simple percentage method, chi square test. Data collected was analyzed using tools like;  Percentage analysis  Chi-Square test

SIMPLE PERCENTAGE ANALYSIS Simple percentage analysis refers to a ratio. With the help of absolute figures it will be difficult to interpret any meaning from the collected data, but when percentages are found out then it becomes easy to find the relative difference between two or more attributes. No. of Respondents Percentage = Total Number of Respondents × 100

CHI-SQUARE TEST The Chi-square test is for testing the independence of two variables and testing hypotheses concerning proportions. One of the tests of proportions is that of testing the differences among several population proportions, which is an extension of testing the difference between two population proportions. This Chi-square test is used for testing the difference between two population proportions, testing the difference among several population proportions. The Chisquare test can be used to test the differences among (c) population proportions by using a tabular design for the analysis of the frequencies Chi-Square test enables whether or not two attributes are associated. Chi-Square is calculated as follows. (O – E)2
2

= E

Where O = observed frequency of the cell in row and column E= expected frequency of the cell in rows and column

Degree of freedom ( DF ): DF = (r-1)* (c-1) Where R=Number of rows in the table. C=Number of columns in the table.

2.5 Limitations of the study
 Some customers hesitate to fill the questionnaire.  It is not assured that the responses from all the respondents are true as some of them may like to tell the incorrect information.  The survey was conducted in a short period as a part of the curriculum.  Certain individuals took more time than require for answering the questionnaire.

CHAPTER -3 ANALYSIS AND INTERPRETATION Table No.1
Table showing the Opinion about Gender Particulars Male Female TOTAL No. of Respondents 152 48 200 Percentage 76 24 100

Interpretation From the above table it is clear that 76% of the respondents are male and the remaining 24 % of the respondents are female.

CHART NO.1
Chart showing the Opinion about Gender

76% 80 70 60 50 40 30 20 10 0

24%

Male

Female

Table No.2
Table showing the Opinion about Age

Particulars No. of Respondents (In years) 18-20 21 – 30 31 – 40 Above 41 TOTAL 20 85 65 30 200 10 42.5 32.5 15 100 Percentage

Interpretation From the above table 42.5 % of the respondents are coming under the age group of 21 – 30 yrs and 32.5 % of the respondents are under the age group of 31 – 40 years and Above 41 are 15%.

CHART NO.2
Chart showing the Opinion about Age

45 40 35 30 25 20 15 10 5 0

43% 32%

15% 10%

18-20

21 – 30

31 – 40

Above 41

Table No.3
Table showing the Consumer awareness

Awareness of aavin products Friends Relatives Neighbors Advertisement Total

No. of Respondents

Percentage

20 30 40 110 200

10 15 20 55 100

Interpretation: From the above table it is clear that, 10% of respondents know about the aavin milk through friends,15% of the respondents are through relatives, 20% of the respondents are through neighbors and 55% of respondents are through advertisement.

CHART NO.3
Chart showing the Consumer awareness

10% 15% Friends Relatives Neighbors 20% Advertisement

55%

Table No.4
Table showing the frequency level of buying

Frequency in buying Once in a day Twice in a day Once in a week Occasionally Total

No. of respondents 150 40 5 5 200

Percentage 75 20 2.5 2.5 100

Interpretation: From the table it is clear that, 75% of respondents prefer to buy Aavin milk once in a day,20% of respondents prefer to buy Aavin milk twice in a day,2.5% of respondents prefer to buy Aavin milk once in a week and 2.5% of respondents prefer to buy milk occasionally.

CHART NO.4
Chart showing the frequency level of buying

80 70 60 50 40 30 20 10 0

75%

20% 3% 2%

Once in a day Twice in a day Once in a week Occasionally

Table No.5
Table showing the consumer preference towards aavin products

Customer preference Milk Sweets Curd Butter Total

No. of respondents 120 25 30 25 200

Percentage 60 12.5 15 12.5 100

Interpretation: From the table it is clear that, 60% of respondents prefer to buy Aavin milk ,12.5% of respondents prefer to buy Aavin sweets ,15% of respondents prefer to buy Aavin curd and 12.5% of respondents prefer to aavin butter.

CHART NO.5
Chart showing the consumer preference towards aavin products

60% 60 50

40
30 20 10 0 Milk Sweets Curd Butter 13% 15% 12%

Table No.6
Table showing the customers preference towards Quantity
Quantity 2 Litre 1 Litre ½ Litre ¼ Litre Total No. of respondents 20 160 10 10 200 Percentage 10 80 5 5 100

Interpretation: From the table it is clear that, 10% of respondents buy 2 litre of milk per day,80% of respondents prefer to buy1 liter ,5% of respondents buy ½ Liter and 5% of respondents buy ¼ per day.

CHART NO.6
Chart showing the customers preference towards Quantity 80%

80 70 60
50 40 30 20 10 0 2 Litre 1 Litre ½ Litre ¼ Litre 10% 5% 5%

Table No.7
Table showing the Reason of Purchase

Reason of purchase Quality Freshness Neat package Easy availability Total

No. of Respondents 120 25 15 40 200

Percentage 60 12.5 7.5 20 100

Interpretation: From the above table it is clear that, 60% of respondents prefer to buy aavin milk due to quality, 12.5% of respondents prefer to buy due to freshness, 15% of respondents buy due to neat package and 20% of respondents buy because of easy availability.

CHART NO.7
Chart showing the Reason of Purchase 70 60%

60
50 40 30 20% 20 10 0 13% 7%

Quality

Freshness

Neat package

Easy availability

Table No.8
Table showing the Price Level

Price level Strongly Agree Agree Neither agree nor disagree Disagree Strongly Disagree Total

No. of Respondents 50 100 25 20 5 200

Percentage 25 50 12.5 10 2.5 100

Interpretation: From the above table it is clear that, 25% of respondents are strongly agree with the price level of aavin milk, 50% of the respondents are agreed, 12.5% of the respondents are neither agree nor disagree,10% of respondents are disagree and 2.5% of respondents are strongly disagree.

CHART NO.8 Chart showing the Price Level

50%

50 45 40 35 30 25 20 15 10 5 0

25% 13%

10% 2%

Strongly Agree

Agree

Neither Disagree agree nor disagree

Strongly Disagree

Table No.9
Table showing the Quality Level

Quality level Strongly Agree Agree Neither agree nor disagree Disagree Strongly Disagree Total

No. of Respondents 40 120 30 5 5 200

Percentage 20 60 15 2.5 2.5 100

Interpretation: From the above table it is clear that, 20% of respondents are strongly agree with the quality of aavin milk, 60% of the respondents are agreed, 15% of the respondents are neither agree nor disagree,2.5% of respondents are disagree and 2.5% of respondents are strongly disagree.

CHART NO.9 Chart showing the Quality Level

2.5%

2.5% Strongly Agree

15%

20%
Agree Neither agree nor disagree Disagree Strongly Disagree 60%

Table No.10
Table showing the Consumer Awareness regarding ISI and Agmark standards

Consumer awareness Yes No Total

No. of Respondents 50 150 200

Percentage (%) 25 75 100

Interpretation: From the table it is clear that, 25% of the respondents have the awareness regarding ISI and Agmark standards and 75% of the respondents are not having the awareness regarding ISI and Agmark standards.

CHART NO.10 Chart showing the Consumer Awareness regarding ISI and Agmark standards

75% 80 70 60 50 40 30 20 10 0

25%

Yes

No

Table No.11
Table showing the Consumer Awareness regarding Advertisement

Consumer awareness Yes No Total

No. of Respondents 120 80 200

Percentage (%) 60 40 100

Interpretation: From the above table it is clear that, 60% of the respondents have the awareness of aavin milk through advertisement and 40% of the respondents have not seen the advertisement.

CHART NO.11
Chart showing the Consumer Awareness regarding Advertisement

60
60 50 40 30 20 10 0 Yes No 40%

Table No.12
Table showing the availability of aavin stall near by area Availability Yes No Total No. of Respondents 110 90 200 Percentage (%) 55 45 100

Interpretation: From the above table it is clear that, 55% of the respondents say aavin stall is available near by their area and 45% of the respondents say aavin stall is not available nearby their area.

CHART NO.12
Chart showing the availability of aavin stall nearby area

60 50 40 30 20 10

55% 45%

0
Yes No

Table No.13
Table showing the Consumer awareness regarding availability of all aavin products in the stall

Awareness about all aavin products in stall Strongly Agree Agree Neither agree nor disagree Disagree Strongly Disagree Total

No. of Respondents

Percentage

30 30 130 5 5 200

15 15 65 2.5 2.5 100

Interpretation: From the above table it is clear that, 15% of the respondents are strongly agree that they are aware about the availability of all aavin products in the stall,15% of the respondents are agreed, 65% of the respondents are neither agree nor disagree,2.5% of respondents are disagree and 2.5% of respondents are strongly disagree.

CHART NO.13
Chart showing the Consumer awareness regarding availability of all aavin products in the stall

3% 2% 15% 15% 65%

Strongly Agree Agree Neither agree nor disagree Disagree Strongly Disagree

Table No.14
Table showing the purchasing level during the train travel Purchasing level Yes No Total No. of Respondents 100 100 200 Percentage 50 50 100

Interpretation: From the above table it is clear that, 50% of the respondents have the habit of buying aavin milk in the time of train travel and 50% of the respondents do not have the habit of buying aavin milk in the time of train travel.

CHART NO.14 Chart showing the purchasing level during the train travel

60

50%
50 40 30 20 10 0 Yes

50%

No

Table No.15
Table showing the consumer preferences of aavin stall in railway station Consumer preferences Yes No Total No. of Respondents 110 90 200 Percentage 55 45 100

Interpretation: From the above table it is clear that, 55% of the respondents need a aavin stall in railway station and 45% of the respondents do not need a aavin stall in railway station.

CHART NO.15
Chart showing the consumer preferences of aavin stall in railway station

60 50 40 30 20 10 0

55% 45%

Yes

No

Table No.16
Table showing the Consumer opinion towards the budget level

Opinion of price comes under the budget Strongly Agree Agree Neither agree nor disagree Disagree Strongly Disagree Total

No. of Respondents

Percentage

20 140 25 10 5 200

10 70 12.5 5 2.5 100

Interpretation: From the above table it is clear that, 10% of the respondents are strongly agree that the aavin milk comes under their budget, 70% of the respondents are agreed, 12.5 % of the respondents are neither agree nor disagree, 5% of the respondents are disagree and 2.5% are strongly disagree.

CHART NO.16
Chart showing the Consumer opinion towards the budget level

80 70 60 50 40 30 20 10 0

70%

10%

12% 5% Agree Neither agree nor disagree Disagree

3%
Strongly Disagree

Strongly Agree

Table No.17
Table showing the satisfaction of consumers towards service

Satisfaction of Service Strongly Agree Agree Neither agree nor disagree Disagree Strongly Disagree Total

No. of Respondents 60 100 20 15 5 200

Percentage 30 50 10 7.5 2.5 100

Interpretation: From the above table it is clear that, 30% of the respondents are strongly agree with the service provided by aavin, 50% of the respondents are agreed, 10% of the respondents are neither agree nor disagree,7.5% of respondents are disagree and 2.5% of respondents are strongly disagree

CHART NO.17
Chart showing the satisfaction of consumers towards service

3% 10% 7% 30%

Strongly Agree Agree Neither agree nor disagree Disagree Strongly Disagree

50%

Table No.18
Table showing the opinion of consumers towards package

Quality of package Strongly Agree Agree Neither agree nor disagree Disagree Strongly Disagree Total

No. of Respondents 60 80 30 20 10 200

Percentage 30 40 15 10 5 100

Interpretation: From the above table it is clear that, 30% of the respondents are strongly agree that the package of aavin milk are neat & clean, 40% of the respondents are agreed, 15% of the respondents are neither agree nor disagree,10% of respondents are disagree and 5% of respondents are strongly disagree.

CHART NO.18 Chart showing the opinion of consumers towards package

40% 40 35 30 25 20 15 10 5 0 30%

15% 10% 5%

Strongly Agree

Agree

Neither Disagree agree nor disagree

Strongly Disagree

Table No.19
Table showing the satisfaction level of consumers towards Freshness

Satisfaction level of Freshness Highly satisfy Satisfy Neutral Dissatisfy Highly dissatisfy Total

No. of Respondents

Percentage

20 60 60 40 20 200

10 30 30 20 10 100

Interpretation: From the above table it is clear that, 10% of the respondents are highly satisfy with the freshness of aavin milk, 30% of the respondents are satisfied, 30% of the respondents are neutrally accept the statement ,20% of respondents are dissatisfied and 10% of respondents are highly dissatisfied.

CHART NO.19 Chart showing the satisfaction level of consumers towards Freshness

30% 30 25 20 15 10 5 0 Highly satisfy Satisfy 10%

30%

20%

10%

Neutral

Dissatisfy

Highly dissatisfy

Table No.20
Table showing the Overall satisfaction of consumers compared to other products

Satisfaction level of consumers Highly satisfy Satisfy Neutral Dissatisfy Highly dissatisfy Total

No. of Respondents

Percentage

100 80 10 5 5 200

50 40 5 2.5 2.5 100

Interpretation: From the above table it is clear that, 50% of the respondents are highly satisfy with the aavin milk& milk products when compared to other products, 40% of the respondents are satisfied, 5% of the respondents are neutrally accept the statement ,2.5% of respondents are dissatisfied and 2.5% of respondents are highly dissatisfied.

CHART NO.20
Chart showing the Overall satisfaction of consumers compared to other products

5%

3% 2% Highly satisfy

50%
40%

Satisfy Neutral Dissatisfy Highly dissatisfy

Table No.21
CROSS TABULATION BETWEEN GENDER AND OPINION TOWARDS THE BUDGET LEVEL

OPINION TOWARDS THE BUDJET LEVEL GENDER Strongly Agree 12 8 20 Source : Survey data Neither agree nor disagree 14 11 25 Strongly Disagree 3 2 5

Total

Agree

Disagree

Male Female

117 23 140

6 4 10

152 48 200

(H0) :

There is no significant relationship between gender and opinion towards the budget level.

(H1) :

There is significant relationship between gender and opinion towards the budget level.

CHISQUARE TEST Calculated
2

Value

= = = =

14.793 4 9.488 Significant at 5% level

Degree of freedom Table value Significant level

It is observed from the above table that the calculated value of chi-square is greater than the table value. Hence the null hypothesis is rejected and it is concluded that there is significant relationship between gender and opinion towards the budget level.

TABLE.22
CROSS TABULATION BETWEEN AGE AND CUSTOMER SERVICE

CUSTOMER SERVICE AGE Strongly Agree 8 21 23 8 60
Source : Survey data

Agree 4 56 31 9 100

Neither agree nor disagree 4 5 6 5 20

Disagree 3 2 4 6 15

Strongly Disagree 1 1 1 2 5

Total

18-20 21 – 30 31 – 40 Above 41

20 85 65 30 200

(H0) :

There is no significant relationship between age and customer service.

(H1) :

There is significant relationship between age and customer service.

CHISQUARE TEST
Calculated
2

Value

= = = =

31.669 12 21.026 Significant at 5% level

Degree of freedom Table value Significant level

It is observed from the above table that the calculated value of chi-square is greater than the table value. Hence the null hypothesis is rejected and it is concluded that there is significant relationship between age and customer service.

TABLE.23
CROSS TABULATION BETWEEN INFLUENCING TO KNOW AND PURCHASING LEVEL DURING TRAIN TRAVEL Purchasing Level During Train Travel Factor Yes Friends Relatives Neighbors Advertisement 9 12 8 71 100 Source : Survey data No 11 18 32 39 100 20 30 40 110 200 Total

(H0) :

There is no significant relationship between influencing to know and purchasing level during train travel.

(H1) :

There is significant relationship between influencing to know and purchasing level during train travel.

CHISQUARE TEST Calculated
2

Value

= = = =

25.109 3 7.815 Significant at 5% level

Degree of freedom Table value Significant level

It is observed from the above table that the calculated value of chi-square is greater than the table value. Hence the null hypothesis is rejected and it is concluded that there is significant relationship between influencing to know and purchasing level during train travel.

CHAPTER-4 4.1 Findings
 From the analysis, it was found that 76 % of the respondents are Male and remaining people are female.  42.5% of the respondents are in the age group of 21-30 years.  55% of respondents know about the aavin milk through advertisement.  75% of the respondents prefer to buy Aavin milk once in a day and about 20% of respondents prefer to buy twice in a day.
 It is found that 60% of respondents mainly prefer to buy milk in aavin and the remaining

people prefer to buy aavin sweet,curd and butter.  80% of respondents prefer to buy1 litre of aavin milk per day and 10% of people buy 2 litre per day.  60% of respondents prefer to buy aavin milk due to quality and remaining people prefer because of freshness, neat package and easy availability.
 Most people (75%) strongly agreed that the price of the Aavin milk and milk products are reasonable and affordable.  Most of the respondents (80%)agree that the aavin milk and milk products are high in quality, very few feel that it is inferior in quality.  Most of the respondents (75%) are not aware of the fact that Aavin milk and milk products are ISI and AGMARK certified.

 60% of the respondents have the awareness of aavin milk through advertisement.  55% of the respondents know that the aavin stall is available nearby their area and the remaining 45% do not know the aavin stall is available in their area.
 65% of respondents neutrally agreed that Aavin milk and milk products are always available in the Aavin stall.

 50% of the respondents have the habit of buying aavin milk in the time of train travel and remaining people do not have the habit of buying milk during travel.  It is found that 70% of the respondents are agreed that the aavin milk comes under their budget.  50% of the respondents are agreed with the service provided by aavin.  40% of the respondents are agreed that the package of aavin milk is neat & clean.  40% of the respondents are satisfied with the freshness of aavin milk and the remaining people are not highly satisfied with the freshness.  50% of the respondents are highly satisfied with the aavin milk& milk products when compared to other products.

4.2 SUGGESTIONS
 The amount spent on the advertisement is very low; most of the people still don’t know what all the products available in the Aavin stall are. The sales of the Aavin products can only be increased only if people know about them and the only way to achieve is by advertisement. Various Aavin product names can be made to display along with the pneumonic symbol at the side of the Aavin vehicles and in the stalls.  Advertisement plays a crucial role in promoting the products. A small ad can be given in the front page of the local daily regarding the qualities of the Aavin milk products once in a week. This will create some awareness about the Aavin milk products.  The sales of the Aavin milk and milk products can be increased by setting a Aavin stall at the Erode Railway station. Since the Erode junction being the hub to many rail routes, hundreds of trains from all over India pass through the junction so surely there will be a huge response from the train travelers for the Aavin milk and milk products.  The sale can also be increased by some sales strategies. Since most of the consumers belong to middle and lower middle class category they will not be able to pay the money daily so credit system can be followed by collecting some deposit at the starting itself. Free door delivery can also increase the sales of the Aavin products.  Automatic vending booths may be installed in main areas in the Erode town to facilitate the customers to purchase milk round the clock.  Aavin website may be updated and popularized.

4.3 CONCLUSION
Promotion of sales and knowing consumer behaviour are important aspects for selling the product and achieve the highest sales level in the market. Through this study, we conducted the research entitled ―A study on Consumer Behaviour and Sales Promotion of Aavin Milk and Milk Products‖. This study helps us to know the sales promotion strategies adopted by the company and consumer perception towards the product. It also provides the steps to improve the sales in future and attain the highest growth level in the market.

Bibliography
1. Philip Kotler – Marketing Management, Prentice Hall of India, 2004. 2. C.R.Kothari – research methodology (methods and techniques), New Age International Publishers, 2007. Website www.aavinmilk.com www.marketingstrategies.org www.marketingprinciples.com

A Study on Sales promotion and Consumer behavior of Aavin Milk & Milk Products
QUESTIONNAIRE

Personal data:
Name: Gender: Male ( ) Female ( ) Age: a)18-20 b)21-30 c)31-40 d)Above 41

Questions:
1. How did you come to know about aavin milk & milk products? a) Friends b) Relatives c) Neighbours d) Advertisement 2. How frequently will you buy aavin milk products? a) Once in a day b) Twice in a day c) Once in a week d) Occasionally 3. What kind of aavin products do you prefer to buy? a) Milk b) Sweets c) Curd d) Butter

4. What is the quantity of aavin milk will you buy? a) 2 litre b) 1 litre c) ½ litre d) ¼ litre 5. Why you prefer aavin product? a) Quality b) Freshness c) Neat package d) Easy availability 6. The prices of aavin milk products are reasonable? a) Strongly Agree b) Agree c) Neither agree nor disagree d) Disagree e) Strongly Disagree

7. What do you feel about the quality of aavin milk products? a) Very High b) High c) Satisfactory d) Low e) Very low 8. Do you know that aavin products are ISI and AGMARK certified? a) Yes b) No

9. All aavin milk products are sufficiently available in the stall? a) Strongly Agree b) Agree c) Neither agree nor disagree d) Disagree e) Strongly Disagree

10. Have you seen any aavin advertisement? a) Yes b) No

11. Is there aavin stall available nearby your home? a) Yes b) No 12. Do you aware that all the aavin products are available in the stall? a) Strongly Agree b) Agree c) Neither agree nor disagree d) Disagree e) Strongly Disagree 13. While you travel in train will you prefer to have aavin milk? a) Yes  b) No 14. Do you need aavin stall in railway station? a) Yes  b) No

15. Whether the aavin products come under your budget? a) Strongly Agree b) Agree c) Neither agree nor disagree d) Disagree e) Strongly Disagree 16. What do you feel about the service of aavin milk products? a) Strongly Agree b) Agree c) Neither agree nor disagree d) Disagree e) Strongly Disagree 17. Do you feel that aavin milk package are clean & neat? a) Strongly Agree b) Agree c) Neither agree nor disagree d) Disagree e) Strongly Disagree 18. How do you feel about the freshness of aavin milk products? a) Highly satisfy b) Satisfy c) Neutral d) Dissatisfy e) Highly Dissatisfy

19. Whether you are satisfy with the aavin milk & milk products when compared to other milk products? a) Highly satisfy b) Satisfy c) Neutral d) Dissatisfy e) Highly Dissatisfy

20. Suggestions: _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _____

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