A STUDY ON THE COMPETITIVE ADVANTAGE OF AAVIN OVER ITS RIVALS IN THE SALEM REGION: AN EMPIRICAL STUDY

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1 A STUDY ON THE COMPETITIVE ADVANTAGE OF AAVIN OVER ITS RIVALS IN THE SALEM REGION: AN EMPIRICAL STUDY DR.R.SUBRAMANIYA BHARATHY*; MR.R.RAMESH**; MR.S.B.INAYATH AHAMED** *ASSISTANT PROFESSOR, PRIMS, PERIYAR UNIVERSITY, SALEM. TAMILNADU, INDIA. **PH.D., RESEARCH SCHOLARS, PRIMS, PERIYAR UNIVERSITY, SALEM. TAMILNADU, INDIA. ABSTRACT India is the leading producer of milk in the world. It was in the year 1904 when the seed of cooperation was sown in India with the passage of first Cooperative Act. Since then Cooperative movement has made rapid strides in all fields of socioeconomic activities. Due to the White revolution there is a fierce competition among the dairy firms to increase their market share in India. Dairy Industry is undertaken by farmers to augment their income and it has been the source of livelihood for the rural masses. In Tamilnadu, Salem is the leading producer of milk and due to which many firms have started flooding in the market. It s to be noted that Aavin is the leader of the market in this region. It s because of the various attributes Salem consumers continue to be brand loyal to Aavin. This paper throws light on factors that promote the sales of Aavin and to highlight the competitive advantage has over its rivals. KEYWORD: Competitive Advantage, Cooperative Movement,,White revolution. INTRODUCTION Indian agriculture today is characterized by decreasing farm size, increasing number of operational holdings, higher degree of fragmentation and a declining contribution of agriculture to Gross Domestic Product now standing at nearly 32%. It is an index of the diversification of the economic base. The share of agricultural work force in total at the same time is not declining and that the absolute number of people dependent on agriculture for jobs and income is to a low absorptive capacity for Labour in industry. This calls for expansion of emerging high demand sub-sector like livestock and dairying, horticulture, fisheries, poultry and forestry. There is an Indian proverb that where cattle are properly cared for, civilization advances, land grows richer, children grow healthier and debt becomes less, signifying the importance of dairying. The unfavorable land-man ratio and fragmented land holdings combine make it difficult to support large families on crop income alone. It is not surprising that the small farmer and the landless are more often victims of money lenders and of natural calamities. Dairying, as subsidiary source of income, is a real relief to most of these weaker sections of the society. Often one or two milk animals enable these farmers to generate sufficient additional income to break the vicious subsistence of agriculture-debt cycle. 44

2 RESEARCH METHODOLOGY Research in common parlance refers to a search for knowledge. It can be defined as a scientific and systematic search for pertinent information on a specified task. In research it is the responsibility of the researcher to expose the research design to evaluate before they are implemented. The researcher has to specify very clearly and precisely what decisions he selects and why he selects them, so that others can evaluate it. So the adoption of proper methodology is an essential step in conducting a research study. RESEARCH DESIGN Sampling and Sample Size It refers to the technique or the procedure the researcher adopts in selecting items for the sample. The sample design should be reliable and appropriate for the study which is to be conducted. Sample Size The sample size should not be too small or too large, if more error will occur or more time will be consumed. Hence an optimum sample size of 200 was taken. Sampling Technique Convenience sampling technique is used here. When population elements are selected for inclusion in the sample based on the ease of access, it can be called as convenience sampling. Data Collection Method Primary and secondary data were collected for the study. Primary data are that, which are collected fresh and for the first time and thus happens to be original in character. With the help of questionnaire, the researcher collected the primary data. In this method a questionnaire is given to the persons concerned with a request to answer the questions and return the questionnaire. The secondary data were collected through magazines, journals, websites and company records. DATA ANALYSIS AND INTERPRETATIONS Table-1 Age and brand preference of Aavin milk S.NO. AGE GROUP (IN YEARS) NO. OF 1. Below Above

3 [[[[[ Asia Pacific Journal of Marketing & Management Review ISSN From the table, 48.5% of respondents belong to the age group years. 25% of respondents were of below 25 years. 26% of respondent6s belong to the age group years. 10.5% of respondents are above 45 years. Thus it can be interpreted that majority of the respondents are youngsters who are in the age of Table-2 Sex and Brand Preference of Aavin Milk S.NO. SEX NO. OF 1. Male Female From the table it is interpreted that, 83.5% of respondents are male and 16.5% of respondents are females. Table-3 Marital Status and Brand Preference of Aavin Milk NO. OF S. NO. MARITAL- STATUS 1. Married Unmarried From the table, it is interpreted that 86% of respondents are married and 24% of respondents are unmarried. Table-4 Education and Brand Preference of Aavin Milk S. NO. EDUCATIONAL LEVEL NO. OF 1. Illiterate School level education Collegiate Professional

4 The table reveals that 55% of respondents have completed school level education. 26 % of respondents are illiterate. 13.5% of respondents are collegiate and 5.5% of respondents are professionals. Table-5 Occupation and Brand Preference of Aavin Milk No. OF S. NO. OCCUPATION 1. Employees Businessmen Agriculturalists Professional From the table, it is inferred that 46% of respondents are businessmen, 35.5% are employees. 14% of respondents are agriculturists and 4.5% of respondents are professionals. Table-6 Income and Brand Preference of Aavin Milk S. NO. INCOME PER NO. OF MONTH (IN RS.) 1. Very low Income (below 3,000/-) Low income (3,000 8,000/-) Medium income (8,000 10,000/-) High Income ( Above 10,000/-) It is revealed from the table that 54%of respondents `earn more than 10, % of respondents have income range between 8000 to 10, % of respondents have income between 3000 to % of respondents have income below Rs

5 Table-7 Size of the Family and Brand Preference of Aavin Milk S. NO. FAMILY SIZE No. OF 1. Very Small (below 3 members) Small (3-5 members) Medium (6-8) Large (Above 8 members) 8 4 From the table, it reveals that 64% of respondents family size consists of 3 to 5 members. 4 % of respondents consist of very small family below 3 members. 6% of respondents consist of 6 to 8 family members. 4% of respondents consist of more than 8 members in their family. Thus it can be interpreted that majority of the respondents belong to small family, which highlights the changing lifestyle of the customers-a shift from the joint family to nuclear family Table-8 Requirement of Milk and Brand Preference of Aavin Milk REQUIREMENT OF MILK (IN LITRES) NO. OF Below Above The table, reveals that 65% of respondents consume less than 1 liter of milk per day.23.5 % of respondents consume 1 to 3 liter of milk. 7 % of respondents consume 4 to 6 liters of milk. 4.5% of respondents consume above 6 liters of milk. Thus this finding supports the finding of the previous table that in a nuclear family consumption of milk is less. Table-9 Source of Milk SOURCE Private milk Aavin milk Both (Private & Aavin milk)

6 23.5% of respondents procure milk from both private & Aavin milk vendor. 65% of respondents procures milk from Aavin vender % of respondents procure milk from private dairy milk. This shows that consumers prefer to buy the Aavin milk from the vendor. Thus it can be interpreted that Aavin brand has got preference from majority of the respondents. Table-10 The Respondent s opinion about the reasons for Buying Aavin milk REASONS Price Package Quality Quantity Taste Availability Freshness Door delivery % of respondents buy aavin milk for the quality and quantity. 84% of respondents for the taste and 77.5% of respondents for the package. 80 % of respondents for the price. 65% of respondents for the availability. 20 % of respondents for the freshness. This table helps the researcher to make a major finding about the factors which makes Aavin the most preferable brand. The major factor is found to be Quality of the milk and the Quantity package of the same. However what arouses the curiosity of the researcher is that, the factor of freshness is chosen by very less number of respondents, which shows that freshness is not considered as a criterion for deciding the quality of milk. Next factor which are given importance by the respondents are taste and door delivery. Thus it can be interpreted that the preference for Aavin milk is mainly because of the quality, its taste, quantity, Package and the convenience in availability. Table-11 The Respondent s opinion about the reasons for buying private milk REASONS Price Availability Credit facility Door delivery Location advantage

7 The table reveals that 84.5% of respondents by private milk for the credit facility. 86 % of respondents buy private milk for the door delivery service. 67.5% of respondents buy private milk for the milk. 60 % of respondents buy private milk for availability. 58.5% of respondents for the location advantage. NATURE OF BUYING Table-12 Nature of Buying Aavin Milk Regular Irregular % of respondents are regular buyer of Aavin milk. 26% of respondents are irregular buyers of Aavin milk. Thus it can be interpreted that most of the consumers buy Aavin milk are brand loyals. Table-13 The respondents opinion about the price of Aavin milk Highly satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Highly dissatisfied % of respondents are highly satisfied the milk. 18.5% of respondents are dissatisfied about the price of Aavin milk. 15 % of respondents are neither satisfied, not dissatisfied high price. 12.5% of respondents the satisfied with price of Aavin milk. 3 % of respondents are highly dissatisfied with price of Aavin milk.thus it can be interpreted that Aavin products are priced to the satisfaction of consumers. 50

8 Table-14 The Respondents Opinion about the Package of Aavin Milk Highly satisfied Satisfied Neither satisfied nor dissatisfied 12 6 Dissatisfied Highly dissatisfied % of respondents are satisfied about the package of Aavin milk. 16% of respondents are highly dissatisfied with the package % of respondents are dissatisfied with package. 13 % of respondents are highly satisfied with the package of Aavin milk. 6 % of respondents are neither satisfied nor dissatisfied with the package. Thus it can be inferred that that packaging can be improved as nearly 31.5 % of the respondents are dissatisfied with packaging. This is needed to retain those customers as there are chances that they may switch to other brands which have got better packaging. Table-15 The respondents opinion about the quality of Aavin milk Highly satisfied Satisfied Neither satisfied nor dissatisfied 12 6 Dissatisfied Highly dissatisfied % of respondents are highly satisfied with the quality of Aavin milk. 16% of respondents are satisfied. 11.5% of respondents are dissatisfied with the, quality of Aavin milk. 10% of respondents are highly dissatisfied.6% of respondents are neither satisfied nor 51

9 dissatisfied. Thus it can be interpreted that the consumers are satisfied with the quality of Aavin, which supports the finding that quality is the major factor for consumers to go for Aavin. Table-16 The Respondents Opinion about the Quantity of Aavin Milk Highly satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Highly dissatisfied % of respondents are neither satisfied nor dissatisfied with the quantity of Aavin milk. 24 % of respondents are 21% of respondents are highly satisfied about the quantity % of respondents are dissatisfied with the quality of Aavin milk. 1.5 % of respondents are highly dissatisfied with the dissatisfied with quantity of Aavin milk. Table-17 The respondents opinion about the taste of Aavin milk Highly satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Highly dissatisfied % of respondents are satisfied about the taste of Aavin milk. 21 % of respondents are highly dissatisfied with the taste. 20 % of respondents are dissatisfied. 19 % of respondents are highly satisfied. With the quality of Aavin milk. 10 % of respondents are neither satisfied nor satisfied. 52

10 Table-18 The Respondents Opinion about the Availability of Aavin Milk Highly satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Highly dissatisfied % of respondents are dissatisfied with the availability of milk. 30 % of respondents are highly satisfied about the availability of Aavin milk. 13.5% of respondents are highly dissatisfied with the availability of milk. 13 % of respondents are satisfied with the availability of milk. 8.5 of respondents are neither satisfied nor dissatisfied with the availability of Aavin milk. Table-19 The Respondents Opinion about the Freshness of Aavin Milk Highly satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Highly dissatisfied % of respondents are highly satisfied about the freshness of Aavin milk. 23 % of respondents are dissatisfied with the freshness of Aavin milk. 18 % of respondents are neither satisfied nor satisfied with the freshness of milk.17 % of respondents are satisfied with the freshness of milk. 7% of respondents are highly dissatisfied about the freshness of Aavin milk. 53

11 Table-20 Problems Faced By the Respondents PROBLEMS High price Taste and purity is not good in sometimes Fresh milk is not available in sometimes Not available in early morning as door delivery Aavin milk is not available in 100 ml, 200 ml etc., Not available in sometimes % of respondents are complaining that Aavin milk is not available in 100 ml, 200ml etc. 80 % of respondents say that Aavin milk in not available at times. 78 % of respondents say that taste and purity is not good sometimes. 72 % of respondents feel that door delivery in the early morning is not available. 70 % of respondents feel that the price of Aavin milk in high. 65 % of respondents feel that freshness milk is not available sometimes. Findings A good majority of the respondents purchasing Aavin milk belonged to below 25 years category, whereas a meagre percentage of respondents purchasing Aavin milk belonged to above 45 years category. o A good majority of the respondents preferring Aavin milk belonged to female category. o A majority of the respondents purchasing Aavin milk belonged to married category. o A good majority of the respondents purchasing Aavin milk belonged to school level education, whereas minority of the respondents purchasing Aavin milk belonged to professional course category. o A majority of the respondents preferred to buy Aavin milk belonged to business group category, whereas a meagre percentage of the respondents purchasing Aavin milk belonged to professional. o A good majority of the respondents preferred to buy Aavin milk belonged to high income (Above Rs 10000/-) category. o A good majority of the respondents purchasing Aavin milk belonged to small size family. o A good majority of the respondents preferred to buy milk in the range of 1-3 litres per day. o A majority of the respondents are buying Aavin milk. 54

12 o A majority of the respondents preferred to buy Aavin milk due to quality and quantity. o A good majority of the respondents are buying private milk due to door delivery system. o A good majority of the respondents agree that they are buying Aavin milk regularly. o A majority of the respondents are dissatisfied with the price of Aavin milk. o A good majority of the respondents are satisfied with the package of Aavin milk. o A good majority of the respondents are highly satisfied with the quality of Aavin milk. o A majority of the respondents are neither satisfied nor dissatisfied with the quantity of Aavin milk. o A majority of the respondents are satisfied with the taste of Aavin milk. o A majority of the respondents are dissatisfied with availability of Aavin milk. o A majority of the respondents are highly satisfied with freshness of Aavin milk. o A majority of the respondents are satisfied with the door delivery system of Aavin milk. o A good majority of the respondents complained that Aavin milk is not available in 100ml and 200ml. SUGGESTIONS A permanent sales counter with a coupon system in every urban area may be implemented. Sales depot may be increased in every area (urban & rural area). It is found from the analysis that most of the respondents opined that the Aavin milk is not available in 100ml, 200ml it is one of the major problems. Hence, due attention may be given by SDCMPU Ltd to AAVIN milk. The SDCMPU Ltd has to give wide publicity through effective media like T.V, Cinema, Newspaper, Journals, etc., A few respondents lodged a complaint against the packaging system of Aavin milk.to protect the health of the consumers, the SDCMPU Ltd may concentrate on a good packaging system. The researchers strongly recommended introducing the door delivery system in the urban area for Aavin milk. The researchers strongly recommended that the quality of the Aavin milk may be enhanced. Advertisements regarding milk and milk products of Aavin should be increased. The respondents feel that the freshness of milk is not true. Their opinion should be eliminated (or) justified in the organization. 55

13 It was recommended to follow the dual price system i.e., less or concessional price to the domestic users and high price to commercial users. Thickness of the Aavin milk may be improved. Aavin milk should be available at any time in all areas. (Urban & rural area). Aavin should increase the number of agent in Salem District. Conclusion The Indian dairy industry has made rapid progress since independence. A large number of milk plants and product factories have been established. These organized dairies have been successfully engaged in the routine commercial production of various milk products. Now a day the consumer behavior is a very interesting subject to analysis. Generally the consumer buying behavior is like a black box. There is a rise in the choosy nature of consumers. Consumers have helped to upgrade their technologies of dairy firms. The study reveals that while purchasing for dairy products consumers look for freshness, quality, taste and texture, validity and convenience. The key challenge lies in making the milk affordable to all with all the necessary characteristics. References 1. Anjani kumar,steven stall,k.elumalai,livestock sector in north eastern regions in India:An appraisal of performance report Bedi,M.S,Dairy Development,Marketing and Economic Growth,NewDelhi:Deep and Deep Publications,: Nair,K.N, Milk production in kerala-trends and Prospects,Economic and Political weekly,vol 24(12813): Senthilkumar G.,Selvakumar K.N.,Prabhu M.,Meganathan N.,(2007).Factors Influencing Expenditure on consumption of Milk & Milk Products in Chennai.The ICFAI Journal of Consumer Behaviour,Vol.2,Issues 2,pp Shankar Ravi(2004). Indian Dairying-Vision 2020:Policy Intiatives for Excellence. Indian Dairyman,Vol. 56,Issue 10,p Desai Subash.The Progress Flows. Kolhapur plus, Times of India, June 9,2009,p Kurien Verghese(1997). An Unfinished Dream.Tata McGraw Hill Publishing Limited.,NewDelhi,pp