CONSUMER ATTITUDE TOWARDS PRODUCTS STRATEGIES OF MAIYAS BEVERAGES & FOODS PVT LTD, BENGALURU, KARNATAKA

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1 CONSUMER ATTITUDE TOWARDS PRODUCTS STRATEGIES OF MAIYAS BEVERAGES & FOODS PVT LTD, BENGALURU, KARNATAKA PRAMOD UDUPA 1 Dr.HIRIYAPPA 2 JAGADEESH.N 3 NAGARAJA.T.D 4 1,2,3&4 Faculty, Kadidal Manjappa National Institute of Post Graduate Studies, Shimoga ABSTRACT Marketing is a branch of business activity concerned with creation and retention of consumers. The effective management of marketing strategies, especially, product strategies, is fundamental for the creation and retention of consumers. This requires continuous marketing research. The present study is concerned with evaluation of product strategies maiyas beverages and foods Pvt.Ltd. Bangalore. The evaluation has been conducted with the help of responses collected from consumers in Bangalore city and surrounding rural areas. With in the span of 5-6 years, maiyas Ltd. has already acquired a prominent position in the markets. The founder of this company sri Sadananda Maiya has rich experience in the field. At present, it stands next to MTR Company in many product features. Although there is competition from rivals, it has been paying attention to enhance its competitive efficiency to out compete its rivals. If the company puts forth greater endeavors to enhance quality, taste and performance of the products, to reduce prices by cutting the costs and to enhance effectiveness in distributional and promotional strategies, the company is sure to outcompete its rivals in the days to come. INTRODUCTION:- Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing is traditionally the means by which an organization communicates to, connects with, and engages its target audience to convey the value of and ultimately sell its products and services. However, since the emergence of digital media, in particular social media and technology innovations, it has increasingly become more about companies building deeper, more meaningful and lasting relationships with the people that they want to buy their products and services. Marketing has little to do with the service provider and everything to do with the customer. Marketing educates and engages the customer, satisfying their needs while simultaneously positioning the service provider as a trusted advisor and source. Good marketing is a two way street. Marketing is the process of exposing target customers to a product through appropriate tactics and channels, gauging their reaction and feedback, and ultimately facilitating their path to purchase. Profitable marketing is reminding likely-to-buy prospects of the value of your products/services in meeting their needs, over and over, at an acquisition cost lower than your allowable acquisition cost. Marketing understands your buyers really, really well. Then creating valuable products, services, and information especially for them to help solve their problems. Marketing, in general, is the communication of information about a product or service to an audience. Effective marketing is a two-way communication that combines both art and science. Marketing, from a scope perspective, is anything that modifies the perceived value and/or desirability of a product or service. From a function perspective, is moving the demand curve to the right, reducing the elasticity of demand. A good marketing strategy should be drawn from market research and focus on the right product mix in order to achieve the maximum profit potential and sustain the business. The marketing strategy is 24 icmrrjournal@gmail.com

2 the foundation of a marketing plan. A successful marketing strategy depends on understanding your customers, what they need and how you can persuade them to buy from you. Marketing plan explains how to put your strategy into action. It will set marketing budgets and deadlines, but it will also tell you how you're going to talk to your target customers - whether that's through advertising, networking, going to trade shows, direct marketing, and so on. With an understanding of your business' internal strengths and weaknesses and the external opportunities and threats, you can develop a strategy that plays to your own strengths and matches them to the emerging opportunities. Processed vegetarian food industry is one of the largest industries in India, fifth in production, consumption, export. Processed vegetarian food sector comprises of two segments-primary processed food and value added food. Primary segment comprises of packed fruits and vegetables, milk, flour, rice, spice etc. and constitute around 62%in terms of value of the processed food. Value added segment includes processed fruits and vegetable, food beverages, jams and jelly etc and holds around 32% share in total processed food. There are many companies operating in processed in vegetarian food industry in the world. In India and in Karnataka. Important players in vegetarian food industry in Karnataka are MTR, Maiyas, Orkay ITC, and Nestle etc. These companies market processed milk products, packed foods, fruit juice spices, instant mixes ready to eat foods pickles etc. maiyas ltd, is one of the such companies operation in Karnataka. Maiyas beverages & foods pvt ltd,.bengaluru, is situated in kaggalahalli Bangalore Karnataka. It was incorporated in the year 2007 as the private sector company. Its founder chairman is Dr.P.Sadanandamaiyas who was the man behind the iconic of Mavalli Tiffin Rooms (MTR) Bangalore. The MTR Company was sold to Norway based company, with an agreement to non competent for five year. Hence, although Maiyas ltd was incorporated in 2007, it s started manufacturing and marketing its product from 2012.Maiyas beverages and food product ltd is likely to get 50% of its sales from traditional snacks, both south and north Indian such as muruku, chaklis and samosas etc, and 50% food beverages like lassies milk shakes, fruit juice etc.the firm wants to diversify its product line and has a target of generating revenues to the tune of 400 cores in the years to come. The present study is an attempt to evaluate the product strategies of maiyas ltd, with help of responses collected from consumers. For the purpose, the researcher has elicited perception of consumers. The paper presents the analysis of responses, major observation, suggestion made for enhancing effectiveness in product strategies and formal conclusion. REVIEW OF LITERATURE The researcher has reviewed the available literature on the topic. The following is the list of summaries of some of previous studies: 1. Hill and Jones have given the opinion that a typical multi business company has three main levels of management: the corporate level, the business level and the functional level. The reason underlying the popularity of this scheme is its ability to simplify, distil and aggregate complex strategy phenomena into a lucid and workable form for analysis and interpretation. 2.Schwenk, observes that the risk of over simplifying general interpretations, strategy function can be considered as a conscious process through which a future plan is created and then acted and then acted upon and is independent of strategy implementation. Strategy formation is a process depending 25 icmrrjournal@gmail.com

3 upon a pattern or stream of decisions reflecting an identification phase, development phase and selection phase of strategy 3. Montoya-Weiss and Cal atone concluded that Lunching new products can be an attractive growth strategy; however this is not without risks. Some estimate that 30-35% of all new products fail while others are even more pessimistic, citing that only two out of ten new launches succeed. 4. Akre, in his final opinion discusses that due to factors such as high advertising costs and the increasing competition for shelf space, it has become difficult to succeed with new products in an increasingly popular approach to reducing risk when launching new products is to follow a brand extension strategy. 5. According to Kotler product hierarchy comprises the following five categories: Need family the basic need underlying the existence of a product family (for example, security) Product family - all the product classes that can satisfy a basic need effectively (for example, saving and income) Product line a group of products within a product class, which are closely related because they are targeted to market, through the same distribution channels or priced with a specific ranger. Product type a group of items within a product line that function in a similar manner (for example capital guaranteed accounts) Brand the name of the product (for example, Dunbar Bank) Item - a unit within a brand or product line which is distinguished by size, price, or some other characteristic of element. Product hierarchy provides the different levels at which a product should be managed. For example, product line management is associated with different decisions compared to brand management. Need for the study:- Modern market philosophy emphasizes that marketing is the function of business concerned with creation of consumer & maintenance of long term relationship with them. This presupposes the understanding the needs of the consumers & delivering such goods and services that offer maximum satisfaction and delight. Marketing strategies should be so designed as to bring out a fit between the organizational aspirations and customer aspirations. The strategies should provide for most effective use of competences and resources. This will result in maximum satisfaction of consumer & fair return to the company. This requires continuous marketing research which would help to understand the needs of the customers & orient the marketing activities towards their needs and aspirations. Product features play a very important role in consumer buying decision. Therefore, identifying the consumer needs and expectations regarding the products will go a long way in enhancing the effectiveness of the product strategies of concern. The present study is concerned with evaluation of product strategies of Maiyas Beverages and Food Pvt.Ltd. Bengaluru. The study is expected to assist the company to enhance its competitive efficiency. Hence, the study claims need & relevance. Statement of the problem The objective of the study is to obtain the perceptions of the consumers towards the product strategies of maiyas beverages & food Pvt ltd, Bangalore, and with the help of the same, evaluate the product strategies of the company. For the purpose, the researchers have selected Bangalore city and surroundings rural areas for collection of consumers responses, so as to give representation to both 26 icmrrjournal@gmail.com

4 rural and urban consumers. The data, so collected, has been analyzed and interpreted. The suggestions have been made, in the light of the findings of the study. Therefore, the present study has been stated as Consumer Attitude towards Product Strategies of Mayas Beverages and Foods Pvt, Ltd. Bengaluru. Objectives of the study:-the following are the objectives set for the study: 1. To present the pattern of the buying behaviors of consumers in relation to maiyas food products. 2. To analyze the perceptions of consumers towards the food product strategies of maiyas ltd. 3. To compare maiyas food products with other companies products in relation to taste quality and ability to be preserved. 4. To make suggestion to the company in the light finding of the study, for the enhancement of effectiveness in formation &implementation of product strategies. Scope of the study Although Maiyas ltd produces and markets beverages & food products, the present study is confined to the evolution of strategies adopted for maiyas food product only. As far as collection of primary data from consumers is concerned, the study is confined to Bangalore city and surrounding rural areas. The perceptions have been collected from respondents selected on convenience sampling basis. Methodology: The study is based on both secondary data and primary data. Secondary data has been collected from books, research studies and websites. The primary data has been collected by the distribution of structured questionnaires, to the consumers in the Bangalore city and surrounding rural areas, in order to give representation to both rural and urban consumer. A total of 155 consumers were contacted in different parts of Bangalore city and 115 consumers were contacted in surrounding rural areas. But, 5 consumers in Bangalore city & 15 consumers in surrounding rural area were not aware of maiyas food products. Finally, 150 questionnaires were distributed in Bangalore city & 100 questionnaires were distributed in the rural areas. The data, so collected, has been analyzed and interpreted, using simple statistical tools. Suggestions have been made to the company, for enhancing effectiveness in formulation & implementation of product strategies. Analysis and interpretation of data: The opinions collected from consumers on the product strategies have been analyze and interpreted. The following are the details of analysis and interpretation of data: Table no: 1 1. Distribution of contacted consumers, on the basis of awareness of maiyas products. Awareness or Areas unawareness Total Urban Rural Awareness of maiyas product Unawarness of maiyas product Total icmrrjournal@gmail.com

5 Urban Rural Total 0.00 awarness unawareness total From the above table, it is evident that most of the customers are aware of maiyas vegetarian processed food products. But even after five years of marketing efforts, there are certain consumers in Bangalore and surrounding places, who are unaware of the company s products. The table shows that about 7.5% of respondents are unaware of these products. In rural areas numbers of such consumers are more. 2. Distribution of respondents as per age. (Size of sample: 250.) Age in years Number of Respondents Percentage % % % % numbers of person percentage % Although 270 consumers were contacted, 20 consumers among them were unaware of maiyas products. Therefore, questionnaires were distributed to only 250 consumers. Hence, the analysis has been made with the help of opinions of these consumers. The above table unveils that more than 35% of respondent are of the age group of years followed by the group of years with 26%. Respondents of age group of years and years, come nest in order respectively icmrrjournal@gmail.com

6 3. Outlets of the maiyas products used by respondents. (Size of sample: 250) Outlets Number of Percentage respondents Hyper market like Big bazaar 60 24% Super market like food world, 70 28% more Nearby departmental stores 90 36% Traditional Karana stores 28 11% Others 02 01% 11% 1% Hyper market like Big bazaar 24% Super market like food world, more Nearby dept, stores 36% Traditional kirana stores 28% Other if any Above table shows the different types of outlets used by the respondents for purchasing maiyas products. More than 35% of respondents go to nearby departmental stores and 28% of respondents purchase in super markets. More than 20% of respondents purchase maiyas products in hyper market. Only 11% of the respondents go to kiran stores for the purchase of maiyas food products, may be due to unavailability of maiyas product in Karana stores. 4. Creation of awareness regarding Maiyas products. Sample size 250. Parties/factors which have Influenced to go Number of Percentage % for maiyas products. respondents Friends 40 16% Neighbors 15 06% Advertisement % Self experience 30 12% Company image 35 14% 29 icmrrjournal@gmail.com

7 Number of respondents Percentage % The above table reviles that more than 50% of respondents got aware of maiyas products through advertisement and were influenced by advertisement to go for maiyas product. Friends and neighbors 22% have also influenced the respondents to move for maiyas products. About14% of respondents ware influenced by companies image. 5. Frequency of purchase of maiyas products. (Sample size: 250.) Frequency of purchase Number of respondents Percentage % Once in a week 80 32% Once in a month 75 30% Once in two month 95 38% Number of Respondence 95% 80% Ones in a week Ones in a month Ones in two month 75% The above table depicts that 38% of respondents purchase maiyas products once in two months, followed by 32% purchasing once in a week. 30% of respondents purchase once in months. 6. Perception of consumers towards number of varieties offered by maiyas ltd. (Sample size: 250). Verities offered Number of respondent Percentage % Excellent 70 28% Good % Not satisfactory 35 14% 30 icmrrjournal@gmail.com

8 Number of respondents poor 14% Excellent 70% Fair22% Good 36% Excellent Good Fair Poor The above table shows the opinions of respondents regarding the verities offered by maiyas ltd. 58% of respondents and 28% of respondents have opined that verities offerd by company are good and excellent respectively. 14% of respondents have opined that verities offered by the company are not satisfactory. Table no: 7 Preference of consumers for different maiyas products. (Sample size: 250.) Products of maiyas Number of respondents Percentage Spices 12 05% Instant mix 50 20% Ready to eat % Frozen foods 50 20% Vermicelli 38 15% Above tables shows the details of the preferences of consumers for maiyas products. Above 40% of the respondents usually purchase ready to eat products, 20% of respondents purchase instant mix and other 20% purchase frozen foods. Others usually purchase vermicelli and spices. 8. Rankings of different companies producing vegetarian processed food products, in relation to taste, quality and ability to be preserved.( Size of sample: 250 ) Different companies Taste. Ranks Quality. Ranks Ability to be preserved. Ranks MTR I III I MAIYAS II II IV ORKAY V V III ITC IV IV V Nestle III I II In order to compare maiyas products with other competitive products, in terms of taste, quality and ability to be preserved, the researcher has selected four competitive companies, namely, MTR,Orkey, ITC and Nestle. The researcher has used likert method for ranking the companies. The final results 31 icmrrjournal@gmail.com

9 have been shown in the table. As for taste is concerned, maiyas products stand second, in quality maiyas product stand second and in ability to be preserved the company occupies IV place. This shows that their position is satisfactory in terms of taste and quality but in terms of ability to be preserved, their position is not satisfactory. Summary of Findings of the study: The following are the major findings of the study: 1. The Important processed vegetarian food products marketed by maiyas Ltd. are 1.frozen foods like aloo bonda, ambode, jellebi, kachori, mallige idlli, masala idlli, and Mangalore bajji etc., 2. Instant mixes, 3. Masalas, 4. Pickles, 5. Ready to eat food etc. 2. Most of the respondents are aware of maiyas vegetarian processed food products. But even after five years of marketing efforts, there are certain consumers in Bangalore and surrounding places, who are unaware of the company s products. About 7.5% of respondents contacted, were unaware of these products. In rural areas number of such respondents is more. 3. More than 35% of respondents are of the age group of years followed by the group of years with 26%. Respondents of age group of years and years, come nest in order respectively. 4. More than 35% of respondents go to nearby departmental stores to purchase Maiyas products and 28% of respondents purchase in super markets. More than 20% of respondents purchase maiyas products in hyper markets. Only 11% of the respondents go to Karana stores for the purchase of maiyas food products, may be due to unavailability of maiyas product in Karana stores. 5. More than 50% of respondents got aware of maiyas products through Advertisements and were influenced by advertisements to go for Maiyas products. Friends and neighbors (22%) have also influenced the respondents to move for maiyas products. About 14% of respondents ware influenced by company s image % of respondents purchase maiyas products once in two months, followed by 32% purchasing once in a week. 30% of respondents purchase once in a month % of respondents and 28% of respondents have opined that varieties offered by company are good and excellent respectively. 14% of respondents have opined that varieties offered by the company are not satisfactory. 8. Above 40% of the respondents usually purchase ready to eat products of Maiyas Ltd., 20% of respondents have preference for instant mixes and other 20% prefer frozen foods. Others usually purchase vermicelli and spices. 9. As far as taste and quality are concerned, maiyas products stand second, and As far as ability to be preserved is concerned, Maiyas products occupy fourth place among the important players. Suggestions INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW The researchers have made the following suggestions for the enhancement of effectiveness in marketing strategies of Maiya s ltd, especially, product strategies: 1. It has been observed during the survey that about 7.5% of respondents contacted for eliciting opinions were unaware of maiyas products. Therefore, it is necessary for the company to gear up their 32 icmrrjournal@gmail.com

10 promotion strategies, utilizing different media, with greater coverage, so as to motivate more prospective consumers to go for the company s products. 2. It has been observed during the survey that more than 80% of respondents purchase Maiyas products in departmental stores, super market and hyper markets. But, about 10% of respondents only purchase Maiyas products in nearby Karana stores. The company should take it as a serious mater and must take measures to make its products available in Karana stores so that consumers purchase these products conveniently with minimum efforts. 3. It has been observed that only about 50% of respondents were influenced by advertisements. Therefore, the company should not only invest more money on advertisements and make them more effective, but also use effectively other promotional measures like personal selling and sales promotions methods. 4. It has been observed that about 30% of respondents and 40% of respondents purchase the company s products once in week and once in a month respectively. But 30% of respondents purchase once in two months. The company should revamp its distributional and promotional systems to increase the frequency of purchase of its products. Appointment of more salesmen, display of products at different outlets, reduction of prices, effective packaging, dealers and consumers promotional measures, distribution of products to all Karana stores for easy availability of products etc. are some of the measures that can be taken in this regard. 5. About 85% of respondents are satisfied with the varieties offered by maiyas ltd. But the remaining respondents opine that more varieties are required. The company should think in terms of introducing new varieties to suit local, national, and international needs. 6. Frozen food products of Maiyas Ltd., are popular. But, at the same time they should see that their other food products are also demanded. This is possible by enhancing the products quality, taste and performance. This will result in enhancing competitiveness of the company s products against the rival s products. Conclusion INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW With in the span of 5-6 years, maiyas Ltd. has already acquired a prominent position in the markets. The founder of this company sri Sadananda Maiya has rich experience in the field. At present, it stands next to MTR Company in many product features. Although there is competition from rivals, it has been paying attention to enhance its competitive efficiency to outcompete its rivals. If the company puts forth greater endeavors to enhance quality, taste and performance of the products, to reduce prices by cutting the costs and to enhance effectiveness in distributional and promotional strategies, the company is sure to outcompete its rivals in the days to come icmrrjournal@gmail.com