Consumer behavior and marketing trends of sea products in Mumbai Metropolitan city

Transcription

1 Consumer behavior and marketing trends of sea products in Mumbai Metropolitan city An Abstract of Ph.D thesis Submitted to Dr. Babasaheb Ambedkar Marathwada University Aurangabad For the Award of the degree of Doctor of Philosophy (Ph.D.) in the faculty of Management Science By Mr. Gaikwad S.B. M.B.A. Under the guidance of Dr. Sarwade W.K. Professor and Director Department of Management science Dean, Faculty of Management Science Dr. Babasaheb Ambedkar Marathwada University, Aurangabad. June-2014 i

2 The Prologue Fish production plays an important role in the socio- economic life of India. It is a rich source of protein and high quality food. It is also an important source for income and employment to millions of rural farmers, particularly women. With a large human population in India and over 250 million economically strong potential consumers of food and those who have an adequate purchasing power, the domestic demand for the fish and processed fish food is increasing very rapidly. Marine products have created a huge demand in the world market. With the high unit value, seafood has been acclaimed as one of the fastest moving commodity in the world market. The world market for seafood has doubled within the last decade reaching US $49.32 billion. India's share is only 2.4% at present, it is mainly dependant on shrimp as a product. However, the situation is changing due to the increased attention/ demand for other fishery resources like squid, cuttlefish, fin fish, etc. and is being exported to the markets of Western Europe and South East Asia. Globally, fish production from capture fisheries and aquaculture was over 130 million tons in year 2000 as compared to nearly 20 million tons in Indian share in global production has reached 4.36% per cent with 9.92% share in inland and 2.8% in marine. For inland sector India is ranked second after China. Other major producer countries are China, Japan, the United States, the Russian Federation and Indonesia. There is a steady increase in the exports indicating a positive trend. Demand for fish and fishery products are increasing considerably, both at domestic and export fronts. The projected demand for fish in the country by 2012 is 9.74 million tonne, that can be met by the projected supply of fish is 9.60 million tonne by 2012 with major share of 5.34 million tonne from inland aquaculture followed by 3.10 million tonne from marine fisheries. Presently, ii

3 fisheries of the island systems, Andamans and Lakshadweep, as well as the deep sea resources, including the tunas, are highly under-exploited. Seafood is perhaps the largest international commodity with fish trade exceeding US$60 billion per year. Almost 200 countries supply fish and seafood products to the global marketplace consisting of more than 800 commercially important species of fish, crustaceans and mollusks. Through the current day, the supply of fish has kept up not only with a rapidly increasing population but also with increases in per capita consumption. However, global capture fisheries are at their maximum sustainable yield and while aquaculture continues to grow, it will have difficultly keeping pace with global demand. The discussion that follows talks about the trends and future outlook for seafood consumption and supply. The outlook is not bright. Without rapid implementation of sustainable fisheries management practices supply will not meet growth in demand and more concerning, we may actually experience a reduction in seafood availability as we deplete one of the world s most valuable resources. Table No: - 1 Fish Production in India (Lakh tonnes) Year Marine Inland Total iii

4 OlO Source:- GOI (2011) Department of Animal Husbandry, Dairying and Fisheries, Government of India, New Delhi. It is evident from the table no 1 that India is the second largest in aquaculture production in the world. Fish production has increased from lakh tonnes (24.47 lakh tonnes for marine and lakh tonnes for inland fisheries) in to lakh tonnes (32.20 lakh tonnes for marine and lakh tonnes for inland fisheries) in Fish production since to iv

5 Table No:-2 State-Wise Fish Production during The Period To (In 000 tonnes) Source:- GOI (2011) Department of Animal Husbandry, Dairying and Fisheries, Government of India, New Delhi. v

6 After framing the Indian constitution, from 1951onwards India has adopted the strategy of planned economy development. The First Five Year Plan was launch in April 1951 and subsequently India completed Seven Five Year Plans and Five Annual Plans. The main feature of the development of fisheries during the Plan Periods included the enlargement of the mechanized fishing fleet, motorization of existing traditional crafts wherever possible and the introduction of new types of boats. The use of synthetic fiber was fishing gears and bottom trawling as and addition to the commercial fishing methods. Deep fishing and aquaculture received major attention during the forth and fifth Plans respectively. SIGNIFICANCE OF THE STUDY The present study is conducted to know the individual purchase behavior of the sea products in Mumbai metropolitan city. The various ingredients of consumer behavior like motivation, learning, perception and personality, social and psychological factors is analyzed in depth. Changing pattern of demand and supply also the reason for stagnation of consumer towards the consumer product and market is analyzed. The present study is a detailed analysis of consumer behavior and marketing trends and buying motives of the sea products in Mumbai metropolitan city. I.e. because of the consumer behavior and wants of consumers never come across within the available source of income. The marketing trends and buyers behaviors always analyze and interpret the values of business. It is also affected on purchasing power of consumers as well as consumption pattern of the particular brands of a product. vi

7 OBJECTIVES OF THE STUDY Following are the broad objectives of the present study are as follows 1) To know the coastal and geographical position of Mumbai metropolitan city. 2) To highlight on the sea products and sales performance. 3) To study the buying habits and product preferences of the consumers regarding the sea foods of Mumbai metropolitan city. 4) To study the production, distribution channels and marketing strategy of sea products, 5) To know the problems and prospects of fishermen s consumers and Govt. officials and to suggest the suitable remedies to overcome the problems. HYPOTHESES TESTED 1) The consumers from Mumbai metropolitan city prefer to consume sea food than chicken and meat. 2) The prices of the sea products are higher in Mumbai metropolitan city than rest of Maharashtra. 3) Mumbai sea coastal area fulfills the sea food needs of the customers. RESEARCH METHODOLOGY Collection of Data To complete the study primary as well as secondary source of information is used. Primary Data Primary data is collected from selected consumers and customers from Mumbai metropolitan city. The data is also collected from Government officials, Fishery NGO s, Fishermen s and other related agencies. The data is collected through open ended questionnaires, for this purpose vii

8 two different questionnaires were framed, one for fisherman and another for real consumers and customers of sea food. SECONDARY DATA Secondary data relating to this study is collected from Government publications, well reputed national and international journals, Reports of fishery department, magazines, books from libraries, published and unpublished thesis and related web sites. Selection of Samples The data is generated by the help of selected samples from the study area. Mumbai metropolitan city consists of different district places i.e. Mumbai City, Mumbai Suburban, Thane/Raigad, 1000 customers were selected by the help of convenience sampling method, from overall fisherman by random sampling methods 100 fisherman s are selected for the study purposes. Period of study The study is confined for last five years i.e Scope and limitations of the study This study is limited to the Mumbai metropolitan city only. To consider the production of fish the Mumbai coastal area is selected for the study purpose. Mostly this study is based on primary as well as secondary source of information. The data is generated for last five years only i.e Tools and techniques used The data collected regarding the sea product preferences, purchase decisions, place of purchase, buying attitudes, and factors affected on viii

9 buying behaviors. The data so collected is scrutinized, tabulated, analyzed and finally it is used for the study purpose. To analyze the data, following tools and techniques are used i.e. percentile, average, standard deviation, Mean, Mode, Co-relation, Regression and other related tools and techniques. Presentation of the study This study is presented in the following chapter schemes. 1) Introduction The first chapter deals with introduction, background of the study, research methodology and its limitations. It also gives the sources of collection of data, objectives of the study, hypothesis tested the methods used for primary survey, the tools and techniques used and different questionnaires have been clearly mentioned. It also gives the overall presentation of the study. 2) Review of Literature This chapter deals with the overall review of the literature available on the particular topic. Literature is the most important part of any research. In this topic, the review is taken from the books and research papers regarding the research topic. The chapter is divided into two different parts i.e. review of books and review of and review of research papers related to this research topic. 3) Socio-Economic and cultural development of selected customers and fisherman s in Mumbai Metropolitan city. The third chapter highlights on the Socio-Economic and cultural development of selected customers and fisherman s in Mumbai Metropolitan city. It shows the classification of the fishermen, Socio- ix

10 demographic profile of fishers, Share of varlous species of fish in total quantity and value, Cost and returns of inland fish merchants, strengths and weaknees of the fishermen, Environmental Awareness of Fishermen and the government of india programme for development of fishermen. 4) Buying behavior and purchasing pattern of sea products in Mumbai Metropolitan city. The fourth chapter highlights on the Buying behavior and purchasing pattern of sea products in Mumbai Metropolitan city, it shows the Price Behaviour, Analysis of marketing costs and marketing margin, Growth in domestic marine fish prices at first and last sales( ), Comparative analysis on the Export and Domestic price of exportable varities/ species, Role of Intermediaries, consumer buying process, Consumer s preference for organized fish market, Frequency and volume of purchase, Factors influencing the consumers' purchasing behavior and Problems of Fish Marketing System. 5) Production and sales performance of sea products. The fifth chapter deals with the production and sales performance of the sea product in india, the inland and marine fishers production are given in detail, the Indian fisher industry is shown at glance, the potential of fisher industry in india and state-wise fish production of fisher in india is given in detail, India s Position in Global Fish, Crustaceans, Molluscs, Aquatic Invertebrates, Market (2012), Varieties of fish and their respective prices, Dec. 2012, Projected Fish Demands in India by Year has been explained in detail in this chapter. x

11 6) Data collection and analysis The current chapter highlights on the Analysis of Consumer behavior and marketing trends of sea products in Mumbai Metropolitan city. It shows Wholesalers in fish marketing, Locations of fish retailer operations by region, Market places for fish retailers, Fish retailing - the income generation and diversification activity, Forms of products traded by different types of retailers, Fish retailer - the market supply stabilizer, Institutional consumers, Main income sources of family households by residential areas, Benefits of fish products perceived by customers by areas of residence and Fish buying patterns. 7) Summery, conclusions and suggestions This Chapter highlights on the overall summary of the present study, important conclusions drawn by the researchers and important suggestions made by the researchers to overcome the problems which found in this study. TABLE NO:-3 Market places for fish retailers Market place Region Total Mumbai Mumbai Thane/Raigad City Suburban Supermarket Count % Itinerant Count traders % Market stall Count % Total Count xi

12 % Source:- Field Survey ( ) Fish retailing could be organized in various types such as supermarket, market stall, or itinerant trader. The survey showed that 89 percent of the retailers had a Table No:-3 market place to operate in with the most popular being the market stall. There were 11 percent of the retailers operating as itinerant traders. TABLE NO:-4 Additional activities undertaken by fish retailers Activity Region Tota Mumba i City Mumbai Suburba Thane/Raiga d l n None Count % Transportation Count service % Rural Industry Count % Farming/Husband Count ry % Fishing services Count % Wage labour Count % Others Count % xii

13 Total Coun t % Source:- Field Survey ( ) Fish retailers specialize in fish retailing. However, half of them had additional income from non-fish retailing activities mostly agri-culture but also wage earnings and rural industry. The share of such types of retailers is much higher in the north compared to the other regions of the country (Table No:-4). This indicates that there is also a strong relationship between fish retailing and agriculture. TABLE NO:-5 Proportions of income from fish retailing by region Income range Region Total (%) Mumbai Mumbai Thane/Raigad City Suburban <25 Count % Count % Count % >75 Count % Total Count % Source:- Field Survey ( ) xiii

14 In order to meet consumer demand, various forms of fish products are delivered including fresh, frozen, dried, canned and with a sauce, etc. However, it was found that 79 percent of the retailers distributed mainly fresh product. It was also found that 12 percent of the retailer mainly supplied dried product. The other forms such as frozen, canned, or readymade were reported in a few cases only. TABLE NO:-6 Forms of products traded by different types of retailers Forms of products Supermarket Itinerant traders Market stall Total Fresh/alive Count % Dried Count % Frozen, Count canned, ready made food % Paste/sauces Count % Others Count % Total Count % Source:- Field Survey ( ) Table No:-6 shows that only retailers operating in market stalls could supplied all the various forms of fish products, while itinerant traders mostly focused on fresh products. Dried and sauce or paste products are xiv

15 the main products supplied by supermarkets. Therefore, it was necessary to pay attention to the development of retailers operating from market stalls. Major Conclusions:- 1. More than half of the processors (55 percent) did not use aquaculture products as raw materials for their production. Large processors consumed more aquaculture products than the others; only 15.8 percent of the establishments did not use aquaculture products. 2. Mumbai City region 40 and 36 percent of wholesalers were multifunctional and last-stage wholesalers, respectively. In Mumbai Suburban Mumbai and Thane/Raigad region, first and intermediate wholesaler operations were more frequent percent of the multifunctional wholesaler engaged in additional occupations, of which agriculture being a major one. In the north a large portion of wholesalers reported that they came from the agriculture sector percent) of the operators had obtained less than 75 percent of their total income from fish wholesaling percent of the retailers had a market place to operate in with the most popular being the market stall. There were 11 percent of the retailers operating as itinerant traders. 6. Only 27 percent of them reported that they stored fish products. Among different types of retailers, only supermarkets kept fish products xv

16 stored regularly, while itinerant trader and market stall owners did not often do so. (Table No:-6.10) 7. Institutional consumers at household level are the majority, accounting for 64 percent, the rest were operating at either enterprise or joint-capital group level. Important Implications 1. Understanding the key issues concerning international trade in order to (i) develop cohesive responses to deal with the adverse impacts and to maximise the benefits and (ii) participate in the international decisionmaking bodies and ensure that the particular needs of developing countries are properly addressed and incorporated into the trade agreements. 2. Developing a comprehensive picture of the various stakeholders involved in production, processing, trade and ancillary activities to understand the implications of changes in trade liberalisation on their livelihoods (i) to ensure that the changes do not adversely affect the livelihoods of the poor and (ii) (if the changes are inevitable and do affect the poor) to develop appropriate measures adequately and sustainably compensate them. 3. Assessing the potential availability of marine (inshore and offshore) and brackishwater resources and their current levels of exploitation in order to develop a comprehensive marine fisheries policy for the country which addresses both the trade-related and management-related needs in a comprehensive and holistic manner. xvi

17 4. Understanding the impact of reduction in indirect subsidies and social subsidies on various stakeholders, particularly the poor, in order to undertake measures to alleviate the hardships caused due to this. 5. The current systems of information generation, review, analysis, documentation and dissemination should be strengthened and better integrated with the international systems. 6. Institutional capacity building through, inter alia, training, workshops, manuals and exposure visits in building skills in negotiation processes, technical areas, and identifying trade opportunities in order to safeguard the interests of the poorer stakeholders. 7. Improving and refining the extension services for effective dissemination of information in simple and jargon-free language on the international trade requirements to enhance the primary stakeholders capacity to cope with the changing needs and to enable them to participate actively in defining the scope and direction of trade arrangements at the international and national levels. Overall Conclusion Information of market prices, products, rules, regulations, and Government policies are also disseminated by the wholesalers. Processors play important roles in absorbing products from fish producers, producing high value products, and drive export development. The operation and existence of fish processors was seen as xvii

18 the output market of fish producers. In most of the regions where fish processors are located, aquaculture and fish capture was promoted. There was a correlation between fish processors and fish producers in the development process. All kinds of value-added and other high value products are produced by the fish processors, mostly for export. Domestic market was important for fisheries development, especially for the aquaculture sector. Institutional consumption sector was developing and has become a major outlet for fishery products. High value products like lobster, mackerel, snapper, shrimp and squid are in strong demand by institutional consumers, an important consumption section of the industry because of their relatively stable consumption capacity. Consumption of fish products at household level was increasing. Fresh products are the most preferred form. Various representatives of the public sector are participating in fish marketing However, there was lack of coordination. A mechanism to promote fish marketing, particularly availability and consumption, for the domestic market should be created. Fish producers need more guidance for active participation in the market. Fish consumers need more protection by ensuring quality, availability and wholesomeness of fish products. xviii