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FINAL REPORT

ON
PREFERENCE TOWARDS
COFFEE

Submitted to
PUNJAB TECHNICAL University, JALANDHAR
in the partial fulfillment of requirement for the
degree of

(MASTERS IN BUSINESS ADMINISTRATION)

PROJECT GUIDE:- Submitted


By:-
Mr. DIVAKAR JOSHI SUBHASH
CHAND
(H.O.D) MBA IV (Sem)
81403317097

1
(2008-2010)

ST.SOLDIER MANAGEMENT& TECHNICAL

INSTITUTE

JALANDHAR

ACKNOWLEDGEMENT
It gives me immense pleasure and satisfaction to categorically
state that Project is not a solo effort. So many people have
contributed there bit to it. It is very difficult to individualize my
gratefulness, here, to all whose contribution has blossomed into
this project. Still my first and foremost gratitude and thanks
exist for those who have given me the insight to do the job. The
task of completing this project would have been difficult if it
was not for timely help, support and encouragement given to
me by numerous people.
The project would not have taken shape without the
constant guidance, advice and insight of Mr. Ramandeep
Gautam whom I express my sincere thanks for his guidance.

Date:
Place: Subhash
Chand

2
DECLARATION
This is to state that the Project titled “PREFERENCE
TOWARDS COFFEE ” is based on the original work carried
out by me and is being submitted towards partial fulfillment of
the requirement for the MBA program of the Punjab Technical
University, Jalandhar. This has not been submitted for the
award of any other degree or diploma.

Name and Signature of the Student

3
CERTIFICATE –I

This is certified that project report titled “PREFERENCE


TOWARDS COFFEE” is submitted for degree of MBA
under Punjab Technical University Jalandhar ” is a
bonafied research work carried out by Subhash Chand Roll
No.81403317097 under the supervision and guidance of
Mr. Divakar Joshi (HOD). No part of research project has
been submitted any where for any other degree. This report
is submitted for evolution in partial fulfillment of Master
Of Business Administration 4th Sem. The assistance and

4
help received during course of investigation has been fully
acknowledged.

Mr.
Divakar Joshi
HOD

CERTIFICATE –II

This is to certify that the project report submitted by

Subhash Chand of Punjab Technical University for the

award of degree of MBA (Marketing) is a bonafide and

authentic piece of work carried under my guidance and

supervision. This quality of work fulfills all the requirement

needed for the said training.

5
Project Guide

Mr. Ramandeep

Gautam

CERTIFICATE –III

This is certified that project report titled PREFERENCE


TOWARDS COFFEE” submitted by Subhash Chand
Roll No.81403317097 to Punjab Technical University
Jalandhar in partial fulfillment o MBA 4th Sem has been

6
approved by student advisory after an oral examination
of same in collaboration with external examiner.

External
Examiner

CONTENTS

CHAPTER I INTRODUCTION
1-5
1.1 Introduction of Coffee in India
1.2 Coffee Cultivation
1.3 Growth & Development of Industry
1.4 Present Status of the Industry

7
CHAPTER II BACKGROUND OF THE STUDY
6-13
2.1 Marketing
2.2 Importance of Marketing
2.3 Consumer Behavior
2.4 Determinant of Consumer Behaviour
2.5 Marketing and Consumer Behaviour

CHAPTER III PROFILE OF THE ORGANIZATION


14-25
3.1 Origin of the Organization
3.2 Growth & Development of the
Organization
3.3 Present Status of the Organization
3.4 Functional Department of the
Organization

CHAPTER IV RESEARCH METHODOLOGY


26-30
4.1 Title of the Study
4.2 Statement of the Problem
4.3 Objectives of the Study
4.4 Scope of the study
4.5 Limitation of the study

CHAPTER V DATA ANALYSIS


AND INTERPRETATION
31-49

CHAPTER VI FINDINGS AND RECOMMENDATIONS


50-54
ANNEXURE AND BIBLIOGRAPHY
55-61

8
LIST OF TABLES AND GRAPHS

Sl No. Particulars Page No.


1 Number of Male and Female Respondents Surveyed 32
2 Age Group of Respondents 33
3 Occupation of the Respondents 34
4 Consumption of Coffee 35
5 Alternate Choice Among the respondents 36
6 Percentage of consumption of Branded unbranded of 37
Both
7 Percentage of Consumption of filter coffee, instant 38
coffee, or both
8 Percentage of Consumption of coffee through out the 39
year
9 The season in which the surveyed respondents consume 40
more coffee
10 The Different brands of coffee, respondents are aware 41-42
of
11 Attributes of coffee respondents perception 43-44
12 The reason for why coffee is consumed most often 45-46
13 Quantity of coffee powder, the Respondents purchase 47
once
14 Respondents rated the overall quality of branded coffee 48
15 Respondents Consciousness while buying a brand 49

CHAPTER 1

9
INTRODUCTION

10
1.1 INTRODUCTION OF COFFEE IN INDIA

The province of Kaffa in Ethiopia is considered to be the


original habitat of coffee Arabia (Arabica) and Central Africa
is recognized to be the home of coffee conephora .

The history of coffee dates back to 575 AD when the


first1 cultivation was started in Yemen. This was the period
when Persian invasion put an end to the Ethiopia rules of
Negus celeb that conquered the country in 525 AD.

Certainly, the discovery of beverage resulted in


cultivation of the plant in Abyssians and Arabia but its progress
was slow until 15th and 16th centuries.

The Arabians were jealous of their new found lucrative


industry' and for a time successfully prevented its spread to
other country by not permitting any of the precious berries to

11
leave the country unless they had first keen steeped in boiling
water or parched so as to destroy their power of germination.

However, it was not practically possible to watch every


avenues of transport, with thousands of pilgrims journeying to
and from Mecca every year and this explains as how coffee was
introduced in India.

According to the Mythology, Arabica Coffee was


introduced in India sometime during 1600 AD by a Muslim
Pilgrim, Baba budan. He is reported to have brought seven
seeds from Yemen, presumably Mecca and raised seedlings on
his hermitage on the hills near chickmagalur Coffee seeding
gradually came to be planted in the backyard and gardens of
most of neighboring villages specially in Attigundi. It is from
these gardens that seedlings were introduced to Nalakand in
coorg, which subsequently gave raise to luxuriant coorg
plantation of today.

1.2 COFFEE CULTIVATION

AREA UNDER CULTIVATION

Coffee cultivation is mainly confined to the states of


Karnataka, Kerala, Tamilnadu and Andra Pradesh and on
limited scale to Arunachal Pradesh, Assam, Madya Pradesh,
Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Karnataka
accounts for about 53 percent of planted area.

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CLIMATIC REQUIREMENT

A Well distributed annual rain fall is preferable for coffee


major areas growing coffee experience south west monsoon as
in the states of Karnataka, Kerala, all of the north East, Seekim
West Bengal and Maharastra it is also grown in areas which
receive predominant North. East monsoon as in Tamilnadu,
Andrapradesh and Orissa the south west monsoon is normally
active from June to September with showers during July-
August. The north East is received in spells usually caused by
depression in bay of Bengal during October -December,
December to March is normally dry months. Summer showers
are important for flowering in coffee and are received during
March April certain areas in Tamilnadu were north east
monsoon is prevalent, blossom occurs more than once. Failure
of blossoms leads to crop loss.
Arabica coffee requires a cool and equable climate wile
Robusta thrives well in hot humid conditions the temperature,
rain fall, shade, soil condition and elevation are some of the
important factors and which influence growth of coffee plant.
Elevation influences species cultivated and therefore quality of
coffee Arabica grown well at elevation between 900 and 1200
meters wile Robusta comes up well at lower elevation.

1.3 GROWTH AND DEVELOPMENT OF THE


INDUSTRY IN THE WORLD

13
The original architect of the coffee industry are said to be
Ethiopians before 1200 its consumption at spread along the red
sea to Adhen and Cairo by 1300, coffee was known to Persia
and by 1500 to Turqui. Shortly thereafter coffee was being sold
to Venues across the Mediterranean sea. Most pilgrims had
started to cultivate coffee in India by 1600 AD. Coffee was
under large-scale cultivation for the first time on 1729. Brazil
was producing 200.000 bags annually by 1850 - 3 Millions
bags annually by 1850.

The first significant export from brazil was made about


1809 i.e. 80 years after their first planting. It took another of
Brazil's coffee exported to reach 4 Million bags.

Soluble coffee was first produced in USA on 1867.


Coffee cultivation was first developed after 1800 in Brazil.
Parallel development occurred after 1850 in most Latin
America countries and as late as 1900 AD in Colombia.

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Brazil coffee history had been complicated by surpluses
of coffee in 1930's and 1860's, equivalent to several year
crops. These surplus were caused due to large extend by Brazil
uncontrolled production and cultivation of coffee.

IN INDIA

Coffee, which was brought in India by a Muslim pilgrim,


BABA Budan on his return from Mecca, remained as a
backyard plant until sometime. Later, it was developed into
gardens. However, it was in 1820's that the commercial
plantation was opened in south India with British enterprises
and investment. The cultivation of coffee rapidly progressed
during next 40 years. In 1856 there were only 7 British planters
in Mysore. By 1869, their numbers had increased to 662 owing
8094 hectares of the total cultivated area of 58670 hectares.
Indian coffee soon established itself as outstanding in quality
and became a commodity 2nd to none in the world market.
India at present has about 350000 hactares of cultivated land of
which Arabica accounts for 40% and robusta for 60%

1.4 PRESENT STATUS OF THE INDUSTRY


The Indian coffee market is very small. Total market is
smaller than Portugal, which is a country of 9 million people.
India offers an opportunity for market development. At present,
only 8.8% of the population consumes coffee. In the urban
areas the figure is mr17.1% and 5.6% in rural areas.
At present, the only coffee plantation areas are dedicated

15
to Arabica and the remaining 60% is dedicated to robusta.

CHAPTER 2
BACKGROUND
OF THE STUDY

16
2.1 MARKETING

Marketing has it's origin in the fact that humans are


creatures of needs and wants. People need food, air, water,
clothing, and a strong desire for recreation, education and other
services. They have strong preferences for particular versions
and brands of basic good and services.

The concept of marking brings us full circle to the


concept of marketing.

Marketing means human activity-taking place in relation


to market.

Marketing means working with market to actualize


potential exchanges for the purpose of satisfying human needs
and wants.

American marketing association approved a definition


for marketing management in the year 1985, "marketing
management is. the process of planning and executing the
conception, prizing, promotion and distribution of goods,
services and ideas to create an exchange with target groups that
satisfy the customers and organizational objectives".

This definition recognizes that marketing management is


a process involving analysis planning, implementation and

17
control that covers goods services and ideas, that it rests on the
notion of exchange, and that the goal is to produce satisfaction
for the parties involved.

18
2.2 IMPORTANCE OF MARKETING

I. IMPORTANCE OF MARKETING TO THE SOCIETY

1. Marketing helps to achieve, maintain and raise the


standard of living of the Society.
2. Marketing increases employment opportunities.
3. Marketing helps to increase the national income.
4. Marketing helps to maintain the economy marketing is a
connecting links between the customer and the
producers.
5. Marketing helps in creating of utilities.

II. IMPORTANCE OF MARKETING TO THE


BUSINESS FIRMS

1. Marketing generates revenue to the firm.


2. Marketing acts as a basis for marketing decisions.
3. Marketing helps the top management to manage
innovation and changes.

2.3 CONSUMER BEHAVIOUR


Consumer behavior is defined as "all psychological,
social and physical behaviors of potential costumers as they
become aware of evaluate, purchase, consume, and tell others
about product and services".

In a simple word buyer behavior is the process by which

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an individual.

Whether, what, when, where, how, and from whom to


purchase goods and services.

2.4 DETERMINANTS OF CONSUMER BEHAVIOR

A buyer's purchase decisions are highly influenced by


buyer's
culture, social, personal, psychological factors.

CULTURAL FACTORS
Culture represents an overall social heritage, a distinctive
form of environment or adaptation by a whole society of
people, it includes a set of learned beliefs, values, attitudes,
morals, customs, habits and forms of behavior that are shared
by a society.

SOCIAL FACTORS
This includes :
References group

Consumers accept information provided by their peer


groups on the quality, performance, style, etc. These groups
influence the person's attitude, expose them to new behaviors
and' life style, and create a pressure on the individual.

Family

20
Most consumers belong to a family group. The family
can exert considerable influence in the shaping the patterns of
consumption and indicating the decision making roles.

21
Roles and Status
Roles are activities of the person in a group. Each role
carries a status. People will choose the products that will
communicate their status to the society.

PERSONAL FACTORS
A buyer1s decision is also influenced by personal
characteristics, notably the life cycle stage, occupation,
economic, circumstances, lifestyle and personality and self-
concept.

The lifecycle of a person begins with die child birth,


shift to dependent infancy, adolescence, teenage, adult, middle
aged, old then ends with death. Under each stage people's
buying behavior is different.
Person's behavior depends up on his occupation. His need
satisfaction depends on his occupation, which provides him the
means.

Personality is defined as the person's distinguishing


psychological characteristics that lead to relatively consistent
and enduring responses to his or her environment. Personality is
described in terms of such trades as self-confidence,
dominance, autonomy, difference, sociability, defensiveness
and adaptability.

PSYCHOLOGICAL FACTOR MOTIVATION


Motivation acts as a driving force in the floor towards

22
purchase action. Motivation that is, set into motion to take
action to fulfill the need or wants. A human being is motivated
by want when these needs are backed by purchasing power it
becomes a want. Motivation is mental phenomenal.

PERCEPTION

Perception is operationally critical. Perception causes the


behavior in a certain way. Perception gives the direction or part
to be taken by the buyer. To perceive is to see, to hear, to touch,
to taste, to smell and to sense something or event or relation
and to organize, interpret and find the meaning in the
experience.

LEARNING

Learning describes changes in an individual's behavior


arising from experience. Learning reference to change in the
behavior brought about by practice or experience. Almost
everything one does or things his learned.

BELIEFS

Believe is a descriptive though that a person holds about


something. These beliefs may be based on knowledge, opinion
or faith.

ATTITUDE

23
Attitude describes as a person's emotionalized inclination
to respond positively or negatively to an object or class of
objects. Attitude affects both perception and behavior to have
an attitude means to be involved emotionally and ready for
action.

24
2.5 MARKETING AND CONSUMER BEHAVIOR

The term consumer behavior refers to the behavior that


consumers display in searching for purchasing, clothing,
evaluating and disposing of product and services that may
expects will satisfy their needs. Study of consumer behavior is
the study of how individual make decisions to spend their
available (time, money, and efforts) on consumption related
items.

The Field of consumer behavior is rooted in the


marketing concept, a marketing strategy that involves in the late
1950. The marketing concept refers to the consumer needs and
wants that are to be given prime importance rather than more
profit making. The marketing concept is based on premises that
a marketer should make what it can sell instead of trying to sell
what it has made.- While the selling concept focus on the needs
the seller, the marketing concept focus on the need of the buyer.

The primary purpose for studying the consumer behavior


as a part of marketing curriculum is to understand why and how
consumers make their purchase decisions. These insights
enable marketers to design more effective strategies.

On the other hand an in depth understanding gives


marketers and unfair advantage over sensitive element like
price, quality, etc., The solution to such practice can curbed by
keeping consumer's well informed about the product itself.

25
Finally Phillip Kotler and authority on marketing states,
although it only takes a semester to learn marketing it takes a
lifetime to master it.

CUSTOMERS
C - Care for the customers
U - Understand the customers
S - Study the customers
T - Trust the customers
O - Oblige the customers
M - Meet the customers
E - Evaluate the customers
R - Response the customers
S - Sell and win the customers

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CHAPTER 3
PROFILE OF THE
ORGANIZATION

27
3.1

ORIGIN OF THE ORGANISATION

Coffee Board is a statutory organization constituted


under the Coffee Act VII of 1942 and comes under the
administrative control of the ministry of commerce,
government of India. Coffee board was established to perform
the following function.

1. Promotion of the sale and consumption in India and


elsewhere of coffee product in India.
2. Promotion of agriculture and technological research
in interest of the coffee industry.
3. Assistance to coffee estates for their development.
4. Securing better working condition and improvement
of amenities and incentive for workers.
5. Working of the measures enumerated in coffee act
elating to co-operation of the surplus pool.

28
The main purpose for the government of India to set up
the board was to develop the growth of Indian coffee industry.

Increasing coffee production internal marketing, export


marketing, quality control, research and promotion are all
activities of the board.

29
3.2 GROWTHS AND DEVELOPMENT OF THE
ORGANIZATION

Indian coffee was mainly depending upon export in the


first quarter of the country. Coffee industry was almost ruined
due to damage by pests & disease and the general depression of
thirties. Planters found the coffee industry to be a losing
proposition and some practically abandoned the plantations.

Government of India passes coffee cess Act XIV of 1935


and set up the first Indian coffee committee in November 1935
with the main objective of promoting the sale and increasing
the consumption of Indian coffee at home & abroad.

One the outbreak of the II world war the industries export


outlet was blocked, resulting in loss of European market. The
industry received setbacks and faced unprecedented crisis. The
Indian coffee market expansion board was set up in 1940.
Indian coffee board succeeded the Indian coffee cess committee
in 1942 under the coffee Act VII of 1942.

This Act brought, within its preview, all estates of 5 acres


and above and reduced the ISO to 10% of the crop in 1942-43.
Further notification dated 28-08-43 every estate under its
preview irrespective of acreage. No ISQ was declared after
1943 till 1992-93 seasons. Every planter was obliged to deliver
his entire crop to except such quantity as were permitted by the
board to retain for his domestic seed purposes.

30
On the recommendation of fourth coffee control
conference convened by the government in April 1946, the
Government placed the life of the Act on a permanent basis. In
fact the unit system of selling coffee by the pool marketing
themselves to enable the board to tackle the problem of control
of coffee, Government passed an amendment Act of 1954 & the
amendment Act was brought into force in 1955. One of the
important changes of the Act was to appoint a full time
chairman to coffee board, as a chief executive of the board with
33 members including the chairman.

For overseas promotion, an Indian coffee market


expansion a board was organized in London. The coffee
commenced works on 20th July, 1936 under the stewardship of
a Director of Indian coffee propaganda in London.

The external promotion work was done in the UK in


close co-operation with the wholesalers, distributors,
institutions and government departments by interesting them in
Indian coffee and removing prejudices against it. Indian coffee
was brought to the notice of public and retailers through
exhibition and displays.

Today external publicity of Indian coffee is largely


through participation in International trade fares and exhibition
and displays. Since its inception in the year 1942 the coffee
board had maintained its monopolistic position over the

31
industry by following the pool marketing system. This system
was followed for nearly 50 years i.e., up to the year 1992-93
after which an area of liberalization started were new policies
like ISQ & FSQ were introduced.

32
3.3 PRESENT STATUS OF THE ORGANIZATION

Unitil 1992-93 the marketing was regulated by the coffee


board. The era of liberalization started with the
INTRODUCTION OF INTERNAL SALE Quota (ISQ)
allowing the growers to sell 30% of their output directly in the
domestic market. The ISQ was replaced by free sale quota
(FSQ) scheme in 1993-1994 allowing the growers in 1994-95
in the season FSQ was increased to 100% for all.

The coffee board which was administrating and


regulating the market fully till 1992-93, has oriented itself for
better research, assistance to industry and training. It also
provides market information and intelligence activities. Last but
not the least it aims at strengthening the existing auctioning
system.
Finally the coffee board is strongly emphasizing on
establishing the future markets for the coffee commodity.

3.4 FUNCTIONAL DEPARTMENTS OF THE


ORGANISATION

A. SECRETARIAT

The secretariat is in charge of the board. It seeks not only


to coordinate the activities of several department of the board
but also deals with those matters, which do not fall within the

33
domain of the any other department. A part from the personal
and general matters one of the major functions dealt with by the
secretariat pertains to the labour welfare. The board which had
only two departments at the beginning has at present the
following department apart from the secretariat viz.

1. Coffee Promotion department


2. Marketing department which has been realized
from the' activity of poor marketing due to
liberalized marketing policy of 100% FSQ for all
small and large growers.
3. Development department
4. Extension Department
5. project planning
6. Research, Assistance and training.
7. Accounts and finance.

The coffee board has 33 members including the


chairman, who* is the Chief executive of the Board except for 3
MPS who are elected as representative, all others are
appointed by the government of India. The board in each
year, out of its own member's elects a person to be a vice
chairman for a period of 12 months.

The structure of the board is a follows :


1. Members of parliament - 3 (Lok Sabha - 2, Rajya Sabha.
2. Representative of the government of the growing state -
* 4 (Karnataka, Tamilnadu, Kerala, Andra pradesh).

34
3. Representatives of other coffee growing state
4. Coffee growers - 10 (3 large growers, 7 small growers)
5. Coffee traders - 3
6. Coffee Curers - 2
7. Coffee Consumers - 2
8. Labour - 4
9. Instant Coffee manufactures – 1
10. Eminent personalities in the field of research / marketing
of coffee - 1. The term of the board is for 3 years. The present
Chairman of the Board is Mr. G.V. Krishna Rau.

The Board functions through its size standing committees,


which are appointed by each year by election for a period of
one year.

These are :
1. Executive committee.
2. Marketing committee.
3. Propaganda committee
4. Development committee
5. Research committee
Or
6. coffee quality committee

The members of the board are distributed accordingly in one or


more of the above - mentioned committees.

B. COFFEE PROMOTION DEPARTMENT

35
The Promotion Department as a department constitutes of
the Board, is charged with the responsibility of increasing the
sales in the consumption of Indian coffee both within the
country and abroad. To fulfill this responsibility which is best
owned on the department
under the coffee Act.

36
The department has been undertaking several
promotional endeavors which can be broadly classified as under
:
1) Generic promotion that is promotion of the image of
the coffee industry and of the coffee as an ideal
beverage.
2) Market Promotion for the sale of the coffee seeds,
coffee powder and the coffee on the cup from units run
by the Board, through agencies etc., in India.
3) Media Promotion through advertisement in
newspapers,
publications of special reports, pamphlets, Board's own
periodicals.

This Department functions through its statutory committee's,


viz. Propaganda committee and the board and is headed by
the directors of promotion (the charts showing the set up of
the department appended).

MARKETING DEPARTMENT

Since, the liberalization of the marketing structure during


1993-1994 the marketing department, in the coffee board has
been reduced to a bare minimum where most of the staff opting
for VRS (Voluntary Retirement Scheme) and few being
employed at other departments.

DEVELOPMENT DEPARTMENT

37
The important function-of the development department is
to render financial assistance coupled with the technical
assistance to the coffee growers for the overall development
and improvement of their estates through increase in
production. In this section the board is implementing 6 types of
loan schemes and 3 types of subsidy schemes.
They are :
1) Intensive cultivation loan
2) Replanting loan
3) Extensive cultivation loan
4) Special purpose loan
5) Hire purchase loan
6) Crop hypothecation loan
7) Replanting subsidy
8) Interest subsidy
9) Expansion subsidy

DEVELOPMENT DEPARTMENT ORGANIZATION


CHART

C. EXTENSION DEPARTMENT

The extension wing is one of the vital links between the


planning committees on the one hand and the research on the
other &
is in extension since 1948.

In order to achieve the various physical & financial

38
targets fixed for the industry & to have effective administration,
the entire traditional areas has been divided into 5 regions
headed by officer of the rank of the deputy director (Extension),
who in turn is assisted by the senior liaison officers at the
district level & junior director (E) at Bangalore. The traditional
coffee growing areas includes Karnataka, kerala, and Tamil
Nadu, which account for 98% of the area under coffee.

39
Presently the extension services in traditional areas cover
an area of 2.35 lakhs hectares owned by 1.15 Lakhs growers.
Out of these, 98% of the growers who own around 61.7% of
the area form the small growers sector (10 HA & below).
Today the extension services of the coffee board are quite
unique in transfer of technology in the entire country.

D. PROJECT & PLANNING DEPARTMENT

The projects wing is headed by a joint director


(planning & project) at head office, Bangalore. There are three
deputy directors (Vizag, uwahaty & Haflong) eight senior
liaison officers (Andhra Pradesh, Orissa, runachal Pradesh,
Assam, Nagaland, Mizonram, andtripura) and seven junior
liaison officers assisting the respective states in extension,
training and development of coffee. One senior liaison officer
at the coffee board regional office, Guwahati, coordinates the
activities in the North-East region.

The project wings formulate plan project and programs


as per the guidelines to achieve the perspective plan target on
production and marketing. It also functions as the co-ordinating
department in monitoring and evaluation of various plans
programs pertaining to research, extension development,
promotion and marketing department of the board.

E. RESEARCH DEPARTMENT

40
Promotion of agriculture and technology in coffee for the
benefit of the coffee industry has been one of the primary
functions of the coffee board. The research department for
achieving this objective is dressing itself at central research
institute, central research station research station at central
research substation, Chetalli, Coorg, Karnataka, Chundale,
Kalpetta, kerala, Raghavendranagar, Chintapali, Andhra
Pradesh, Tandigudi, Tamilnadu, Diphu, Assam.

F. FINANCE DEPARTMENT
This department has been divided into two (2): Pool
Fund and General Fund.

POOL FUND:

According to the provisions of section 25 of the coffee


Act, the sale proceeds of coffee are credited to a fund called
Pool Fund. The pool fund transactions involve major activities
as under:
a. Payment to growers whose number is more than a lakh,
in 6-7 installments during a period of 6 months.
b. Arrangements payment to Pool agents with bank for
keeping Funds at various places payment to growers
through pool agents.
c. Periodical payment to pool agents and collecting agents
of the board.
d. Payment of central excise duty, Export duty as well as
duty of custom under the coffee act.

41
e. Accounting of stock accounts showing receipts
and disposal.

GENERAL FUND;

Section 30 of the coffee Act prescribes General Fund


is
credited with :
i) All amounts paid to the board by the central
Government under subsection 1) 13, (i.e., proceeds of
duty of customs and duty of excise under section 11
and 12 of the Act reduced by the cost of collection
transferred).
ii) Any sums transferred from the Pool Fund to General
Fund under the provision to subsection (2)of section
32 (provided that where, after the requirement of the
clauses of the subsection have been met, there
remains any excess in the pool fund, the board may,
with the previous section of such excess to the credit
of the General Fund).
iii) All fees levied and collected by the board under the
act.

BORROWING POWER

Rule 38 of the coffee rules, 1955 has been amended with


the effect from 18-10-1988 to enable the board to have cash
credit limit up to Rs.275 crores.

42
In pursuance thereof, the state bank has been allowed a
credit limit for 1989 (as requested by the board) of 205 crores.
The entire' amount carries the export packaging credit interest
rate of 9.5% p.a. the rate of interest has been reduced to 7.5%
p.a. JBrom: 1-3-1989. any withdrawal in excess of the export
packaging credit attract interest rate at 16.5% p.a.

43
CHAPTER 4
RESEARCH
METHODOLOGY

44
4.1 TITLE OF THE STUDY
Analysis of consumer perception towards different
brands of coffee in jalandhar city.

4.2 STATEMENT OF THE PROBLEM

Poor consumption of Indian coffee by the consumers in


comparison to consumption of various other brands of coffee.

4.3 OBJECTIVES OF THE STUDY

a. To find out the consumer behavior towards


different. brands of coffee in jalandhar city.
b. To know the consumer's opinion to use coffee.
c. To recommend the new opportunities in the market
for the improvement of sales and consumer
satisfaction towards particular brands of coffee.

4.4 SCOPE OF THE STUDY

The marketing research in this context is concerned with


one of its several function namely marketing research which
deals with the study of the market for analyzing the consumer
behavior and consumer attitude towards different brands of
coffee in jalandhar city.

The result of the study helps coffee industry and coffee


planters to get feedback of the coffee consumers in the fastest

45
growing city in Asia viz Bangalore, about their attitudes and
behavior towards different factors.

4.5 LIMITATIONS OF THE STUDY

1. It is confined to jalandhar City


2. It is confined to coffee users only
3. The sample size is confined to 100 people.

A. RESEARCH DESIGN OF THE STUDY

This project is a descriptive research with seeks to find


out "what will be the coffee consumer towards different
brands of' coffee".

B. SAMPLING PLAN
Sampling plan can be classified into 3 sections as
mentioned
below :

Sampling unit

Sampling unit referrs to who are the sample target. In this


project study, the sample units are the business class,
executives, professionals, house wives, students and the worker
class.

Sample Size

46
This refers to the total number of people included in the
sampling plan.

In this project study, sample size is 70 coffee consumers


in jalandhar City.

Sampling procedure

This refers to the method incurred for choosing the samples.


In this project study the sampling procedure undertaken is the
random sampling method.

i. PRIMARY DATA

Here first hand information is obtained by distributing


printed questionnaires .

ii. SECONDARY DATA

Here the information is obtained from the boards


publication, report, journals, books, magazines, and
newspapers, management reviews.

C. SOURCES OF DATA

Mainly two sources of data have been used in the making


of this project report.

47
48
SOURCES OF DATA
PRIMARY DATA SECONARY DATA

AQUESTIONNARIES 1) BOOKS
2) JOURNALS
3) BOARDS PUBLICATIONS &
REPORTS
4) MANAGEMENT REVIEW
5) NEWSPAPERS

D. DATA COLLECTION INSTRUMENTS

In this study conducted the foremost data collection


instrument that has been used is the questionnaires. The
questionnaire has been designed both open and closed ended
questions.

D. FIELD WORK

Questionnaire was distributed at office


establishment, colleges, and houses, colleges.

E. DATA PROCESSING AND ANALYSIS OF PLAN

Processing and analysis of data-has been done by means


of printed questionnaires method and many statistical
techniques that include percentage analysis, pie chart,
histograms, which are followed by conclusion and

49
recommendation.

CHAPTER 5
DATA ANALYSIS AND
INTERPRETATION

50
TABLE. 1

NO.
OF

MALE AND FEMALE RESPONDENTS SURVEYED

PARTICULARS NO. OF RESPONDAENTS PERCENTAGE


MALE 53 53
FEMALE 47 47
TOTAL 100 100

ANALYSIS:

Out of 100 respondents surveyed 53% of them are male


consumers & 47% of them are female consumers.

0100090000037800000002001c0000000000040000000301080
0050000000b0200000000050000000c029b08db0a040000002e
0118001c000000fb021000070000000000bc020000000001020
22253797374656d0008db0a0000c0fc0000ac5d110004ee83397
86221000c020000040000002d01000004000000020101001c00
0000fb029cff0000000000009001000000000440001254696d65
73204e657720526f6d616e00000000000000000000000000000

51
TABLE -2
AGE GROUP OF RESPONDENTS

AGE GROUP NO OF RESPONDENTS PERCENTAGE


15 -30 years 47 47
30-45 years 36 36
Above - 45 17 17
Total 100 100

ANALYSIS:

Out of total number of respondents surveyed majorities


i.e. 47% of the respondents belongs to the age group of 15-30
years, 36% of them belongs to the age group in between 30-45
years and the rest i.e. 17% of them belong to the age group 45
years and above,

52
47
50

45
36
40

No. of Respondents (%)


35

30

25
17
20

15

10

0
15 -30 years 30-45 years Above - 45
Age Group

15 -30 years 30-45 years Above - 45

TABLE-3

OCCUPATION OF THE RESPONDENTS

OCCUPATION NO OF RESPONDENTS PERCENTAGE


Business class 21 21
Worker class 40 40
Housewives 10 10
Students 29 29
Total 100 100

ANALYSIS:
Out of total number of respondents surveyed about 21%
belongs to the business class, about 40% belongs to the worker
class, and about 10%

53
40
40

35
29
30

No. of Respondents (%)


25 21

20

15 10
10

0
Bus iness Worker class Housewives Students
class
Occupation

Business clas s Worker class Hous ewives Students

TABLE-4

CONSUMPTION OF COFFEE

CATEGORY NO OF RESPONDENTS PERCENTAGE


Daily 76 76
Occasionally 24 24
Total 100 100

ANALYSIS:
Out of 100 respondents surveyed 76% of them are daily
Coffee drinkers and 24% of them are occasionally Coffee
drinkers.

54
24%

76%

Daily Occasionally

TALBE-5

ALTERNATE CHOICE AMONG THE RESPONDENTS

ALTERNATIVES NO OF RESPONDENTS PERCENTAGE


Tea 41 41
Milk 22 22
Soft drink 18 18
Nothing 19 19
Total 100 100

ANALYSIS:

55
NO. of Respondents (%)
Out of total number of respondents about 41 of them
consume Tea, then about 22 of them consume Milk, about 18 of
them consume Soft drink, and the remaining 19 does not
consume at all.

0100090000037800000002001c0000000000040000000301080
0050000000b0200000000050000000c029b08db0a040000002e
0118001c000000fb021000070000000000bc020000000001020
22253797374656d0008db0a0000c0fc0000ac5d110004ee83397
86221000c020000040000002d01000004000000020101001c00
0000fb029cff0000000000009001000000000440001254696d65
73204e657720526f6d616e00000000000000000000000000000
00000040000002d010100050000000902000000020d00000032
0a5a0000000100040000000000dd0a980820582d00040000002
d010000030000000000

TABLE-6

PERCENTAGE OF CONSUMPTION OF BRANDED:


UNBRANDED OR BOTH

PARTICULARS NO OF RESPONDENTS PERCENTAGE


Branded 50 50
Unbranded 36 36
Both 14 14
Total 100 100

56
ANALYSIS:

Out of total number of respondents surveyed about 50%


of them consume branded coffee, about 36% of them consume
unbranded coffee, about 14% of them consume both branded
and unbranded.

14%

50%
36%

Branded Unbranded Both

TABLE - 7
PERCENTAGE OF CONSUMPTION OF FILTER COFFEE
INSTANT COFFEE OR BOTH

PARTICULARS NO OF RESPONDENTS PERCENTAGE


Filter 43 43
Instant 30 30
Both 27 27

57
Total 100 100

ANALYSIS:

Out of total number of respondents surveyed about 43%


of them consume filter coffee, 30% of them consume Instant
coffee, and about 27% of them consume both filter as well as
instant coffee.

45

40

35
No. of Respondents(%)

30

25

20

15

10

0
Filter Instant Both
Particulars

Filter Instant Both

TABLE-8
PERCENTAGE OF CONSUMPTION OF COFFEE
THROUGH OUT THE YEAR

PARTICULARS NO OF RESPONDENTS PERCENTAGE

58
Uniform 79 79
Not uniform 21 21
Total 100 100

ANALYSIS:
Out of total number of respondents about 79% of them
say that their coffee consumption is uniformed through out the
year, and the rest about 21% opl for change which is not
Uniformed through out the year.

21%

79%

Uniform Not uniform

TABLE - 9
THE SEASON IN WHICH THE SURVEYED

59
RESPONDENTS CONSUME MORE COFFEE

SEASON NO OF RESPONDENTS PERCENTAGE


Summer 8 8
Winter 35 35
Rainy 42 42
Can't say 15 15
Total 100 100

ANALYSIS:
Out of number of respondents surveyed about 8% of
them take coffee in the summer season, about 35% of them take
coffee in the winter season, about 42% of them take coffee in
the Rainy season, and the remaining 15% of them have no idea.

42
45

40 35

35
No. of Respondents (%)

30

25

20
15

15
8
10

0
Summer Winter Rainy Can't say
Season

Summer Winter Rainy Can't say

TABLE-10

60
DIFFERENT BRANDS OF COFFEE RESPONDENTS
ARE AWARE OF
NAME OF BRAND NO OF
RESPONDENTS
Nescafe 94
Bru 91
Brooke Bond Green Lable 62
Diacafe 12
Indian coffee 27
Cothas 68
Coffee Day 65
Kwality 12
Coorg 56
Tata Kaapi 25

ANALYSIS:
The response given by the respondents exceeds the
sample size because of the multiple choices given by the
respondents out of which 94 of the respondents opt for Nescafe:
91 respondents opt for Bru; 68 opt for Cothas; 65 for Coffee
Day; 62 for Brooke Bond Green Level; 56 for Coorg; 27 for
Indian Coffee; 25 for Tata Kaapi and remaining 12 for Diacafe
& Kwality.

61
100
94
91
90
80

No. of Respondnets (%)


70 68
65
62
60 56
50
40
30 27 25
20
12 12
10
0
Brooke Bond Green Lable

Tata Kaapi
Coorg
Cothas
Nescafe

Bru

Diacafe

Coffee Day
Indian coffee

Kwality

Name of Brand

Nescafe Bru Brooke Bond Green Lable


Diacafe Indian coffee Cothas
Cof fee Day Kw ality Coorg
Tata Kaapi

62
TABLE 11
ATTRIBUTES OF COFFEE RESPONDENTS
PERCEPTION

ATTRIBUTES NO OF RESPONDENTS
Taste 46
Quality 25
Flavor 18
Aroma 20
Energy 6
Price 40
Packaging 2
Manufacturer's Name 2

ANALYSIS:

Out of the total number of the respondents 46 of them


considered Taste as the top most attribute, followed by 40 of
them going for price as the second attribute 25 of them is
quality conscious 20 of them going for Aroma, 18 of them
going for flavor, 6 of them going for energy, and the remaining
2 of them going for packaging and manufacturer's name as the
main attribute of coffee.

63
50
46
45
40
40

35
No. of Respondents (%)

30 25

25
20
18
20

15

10 6

5 2 2

0
Packaging
Taste

Price
Flavor
Quality

Energy
Aroma

Manufacturer's
Name

Attributes

Taste Quality Flavor Aroma Energy Price Packaging Manufacturer's Name

64
TABLE 12

THE RESON FOR WHY COFEE IS CONSUMED MOST


OFTEN

REASONS NO OF RESPONDENTS
Refreshing 79
Reduce fatigue 14
Habit 33
Daily Routine 35
Family Trend 18
Fighting Headache 16
To Prevent Sleep 11
To Promote Sleep 1

ANALYSIS:

The response given by the respondents exceeds the


sample size because of the multiple choices given by the
respondents out of which 79 of the respondents consider
refreshing as the main reason for consuming coffee; about 35 of
the respondents says drinking of coffee is a daily routine; 33 as
habit; 18 as family trend; 16 as fighting headache; 14 as reduce
fatigue.

65
79
80

70

60
No. of Respondents (%)

50
35
40 33

30
18 16
20 14
11

10 1

0
Family Trend

To Promote Sleep
Daily Routine

Fighting Headache

To Prevent Sleep
Habit
Refreshing

Reduce fatigue

Reasons

Refreshing Reduce fatigue Habit Daily Routine


Family Trend Fighting Headache To Prevent Sleep To Promote Sleep

66
TABLE-13
PURCHASE ONCE QUALITY OF COFFEE
POWDER THE RESPONDENTS IN A WEEK

ANALYSIS:

Out of the total number of respondents majority of


respondents about 50% of them buys coffee powder in the
range between 100 gm - 500 gm, about 18% of them buys in
between 50 gm - lOOgm, about 17% of them buys in greater
quality i.e., in between 500gm & more and the rest about 15%
of them buys in between 25gm - 50gm.
QUALITY OF COFFEE POWDER THE RESPONDENTS
PURCHASE ONCE IN A WEEK
GRAMS NO OF RESPONDENTS PERCENTAGE
10 gm – 500 gm 50 50
50gm – 100gm 18 18
500 gm and more 17 17
25 gm – 50 gm 15 15
Total 100 100

67
50
50

45

40

No. of Respondents (%)


35

30

25 18
17
20 15

15

10

500 gm and more


10 gm – 500 gm

50gm – 100gm

25 gm – 50 gm
Grams

10 gm – 500 gm 50gm – 100gm 500 gm and more 25 gm – 50 gm

TABLE-14

RESPONDENTS RATED THE OVERALL QUALITY OF


A BRANDED COFFEE

PARTICULARS NO OF RESPONDENTS PERCENTAGE


Very good 40 40
Good 45 45
Medium 10 5
Poor 5 5
Total 100 100

ANALYSIS:
Out of the total respondents about 45% of them rated the
quality of a branded coffee as good, about 40% of them rated as
very good, about 10% of them rated as medium and the rest
about 5% rated as poor.

68
5% 5%

42%

48%

Very good Good Medium Poor

TABLE - 15

RESPONDENTS CONSCIOUSNESS WHILE BUYING A


BRAND

PARTICULARS NO OF RESPONDENTS PERCENTAGE


Price conscious 48 48

Taste conscious 43 43

Brand conscious 9 9

Total 100 100

ANALYSIS:

69
Out of the total number of the respondents about 48% of
them are price conscious, about 43% of them are taste
conscious and the rest 9% of them consider as brand conscious
as the main factor while buying any coffee brand.
48
50 43
45
40
35
No. of respondents (%)

30
25
20
15 9

10
5
0
Pric e cons c ious Tas te cons c ious Brand c onsc ious
Partic ulars

Pric e cons c ious Taste c ons c ious Brand consc ious

70
CHAPTER 6
FINDINGS
&
RECOMMENDATIONS

71
6.1
FINDINGS

Out of the
total number of
the respondents
surveyed about
53 of them are
Male consumers
and about 47 of
them are Female
consumers.
The total number of surveyed consumers constitutes the sample
size of 100 in which 47 of the consumers belong to the group
15-30 years, then 36 are in the age group 30-45 years, and then
the remaining 17 of them belongs to the age group 45 years and
above.

The different classes in which the respondents falls are


about 21% of them belong to the business, about 40% of them
belong to the worker class, and then about 10% of them belong
to the housewives, and the remaining 29% of them belong to
the students.

The percentage of daily coffee drinkers 76% and 24% of


them are
occasionally coffee drinkers.

72
The best alternative given by the respondents, if they
stop drinking coffee are as follows:

35% of them opt for Tea, 17% of them opt for Milk, and
then 15% of them opt for Soft drink, and the remaining 33% of
them opt for nothing.

The percentage of consumption of branded coffee is


about 50% 36% of them consume branded coffee and the rest
14% of them consume both branded and branded coffee. 43%
of the respondents consume filter coffee, and 30% of them
consume Instant coffee and the remaining 27% of them
consume both Filter as well as Instant coffee.

Out of the total number of the respondents 79% of them


prefer to consume coffee trough out the year which is Uniform
and then the rest about 21% of them prefer to consume coffee
occasionally.

Surveyed respondents are 100 out of which 8% of them


take coffee in the Summer season, then 35% of them take
coffee in the Winter season, about 42% of them take more
coffee in the Rainy season, and the remaining 15% of them
have no idea.

The Nescafe brand is the top in the awareness of the


coffee brand as 94 of the respondents are aware of it, 91 of the
respondents aware of Bru, 62 respondents aware of Brooke

73
bond green label, 12 of the respondents aware of Diacafe an
Kwality, then 27 of the respondents aware of Indian coffee,
68% of the respondents aware of Cothas, 65 of the respondents
Aware of coffee day 56% of the respondents aware of Coorg,
then finally 25 of the respondents aware of Tata kaapi.

Taste is the most attribute by [46 respondents] followed


by the Price [40 respondents ] then Quality coming in the third
position [25] other attributes are Aroma by [20] and then Flavor
by [18] Energy by [6] then Packaging and Brand's name by [2],

The responses given by the respondents exceeds the


sample size because of the multiple choices given by the
respondents out of which' 79 of the respondents consider that
Refreshing as the main reason for consuming coffee, about 35
of the respondents say drinking coffee is a daily routine, 33 of
them say as a habit, 18 of them say as a trend 16 of them say as
fighting headache, 14 of them say as a reducing fatigue, 11 of
them say as opt for preventing sleep as the main factor for
coffee consumption.

Majority of the respondents about 50% of them buys


coffee powder in the range between 50gm-100gm, about 18%
of them buys in the range between 50gm-100gm, 17% of them
buyes in greater quantity i.e. in between 500gm and more and
the rest about 15% of them buyes in between 25gm-50gm:

45% of the respondents are Price conscious, about 43%

74
of them are taste conscious and the rest 9% of them consider
brand's name as the main factor while buying any coffee.

75
6.2 RECOMMENDATION:

 Most of the people like good quality of coffee with


nominal cost hence the authorities / organizations /
industries should make available cost based coffee brand.
 Coffee industry should create awareness among the rural
population for the benefit of coffee consumption.
 Coffee industry should introduce to the extent the coffee
bar or units at all the public places example railway,
station, industrial centers, academic institutions,
hospitals. Etc.
 The coffee industry should introduce eco-friendly coffee,
example : the Diacafe.
 Promotion must be given to promote those unbranded
coffee, which are not popular in the market.

76
QUESTIONNAIRE

77
QUESTIONNAIRE
Dear Sir,
Ramandeep Gautam, a Management student is doing a project
work on the “ANALYSIS OF CONSUMER PERCEPTION
TOWARDS DIFFERENT BRANDS OF COFFEE IN
Jalandhar CITY", in partial fulfillment of the requirement of
the MBA course of Punjab Technical University. I would be
greatful if you could kindly spare some time to answer these
questions. All the information given you will be strictly
confidential.

1] Name of the consumer:


______________________________

2] Age group:
15-30 years: []
30-45 years: []
above 45 years: []

3] Sex: a] Male: [ ] b] Female: [ ]

4] occupation:
a] Student: [] b] Business:
[]
c] Housewife: [] d] Worker Class:
[]
e] Others []

78
5] Income per Month:
a]<Rs.5000: [] b] Rs.5000-Rs. 10000:
[]
c] Rs. 10000-15000: [] d]>Rs 15000:
[]
6] Do you consume coffee?
Yes: [] No: []

7] If yes:
a] Daily: [] b] Occasionally: []
when _______________

8] If No:
Mention other:
Alternatives: ____________________________

9) If yes
a] Branded coffee: [ ] b] Unbranded coffee: []

10] If branded
a] Filter coffee: [ ] b] Instant coffee: []

11] If unbranded,
Where do you buy coffee?
___________________________________________

12] Which brand of coffee are currently using?

79
__________________________________________________

13] Is your consumption of Coffee uniform through out the


year?
Yes: [ ] No: [ ]

14] If No:
In which season do you do you take Coffee more?
A] Summer: [] B] Winter: []
C] Rainy: [] D] Can't say: []

15] Is there any particular reason for taking more coffee in


that season?

**THANK YOU**

80
BIBLIOGRAPHY

81
BIBLIOGRAPHY

1. Marketing by
Phillip Kotler

2. Principles Marketing
P.NJReddy,
S.A.Sherlekar

3. Consumer behavior by
Leen G.Schiffman,
Leslie Lazar Kanuki

82