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SVIM e-journal of Applied Management is a double-blind peer-reviewed, openaccess journal published by Shri Vaishnav Institute of Management, Indore. The
journal carries research papers and analytical articles pertaining to the following
areas: strategic management, financial management, human resource
management, entrepreneurship, services, corporate governance, marketing, ebusiness, information technology management, production & operations
management, decision analysis, management research methods and managerial
economics, etc.
The journal provides an academic platform for professionals and researchers to
contribute and share their research work with the larger academic fraternity. SVIM
e-journal of Applied Management carries original and full-length research papers /
articles that reflect the latest research and developments in both theoretical and
practical domain of business and management. The journal is published in online
version with free access and downloading facility. We have received a good
number of papers for this inaugural issue which were reviewed by an expert
committee and only 10 papers were recommended for publishing.
We congratulate all the authors for meticulously writing the papers that have gone
into this inaugural issue of the journal. We thankfully acknowledge the cooperation, guidance and suggestions received from the expert review committee,
publications committee and other colleagues who have helped directly or
indirectly in bringing out this first volume in time. We also take this opportunity
to thank the Educational Board and Management of SVIM, especially Shri
Purushottamdasji Pasari, Chairman, Shri Kailashchandraji Agar, Secretary, and
the Director Prof. (Dr.) J.S. Panwar for having encouraged and supported us at
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We are also thankful to Shri V.S. Murthy, Administrative Officer- SVIM and
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Contents
Tata Corus Deal: How successful it is Till 2013?
Page No
6-12
13-19
20-38
39-49
50-63
64-78
79-93
94-107
108-123
124-135
Abstract
Soft Drinks were common preference among all the individuals before juices were being
introduced. With the changing lifestyle and income levels, people are shifting their
consumption patterns and have therefore become more health conscious thus leading to
increase in demand of juices.
The study focused on the preference and consumption pattern of soft drink and fruit juice
on the basis of different age group of people living in Indore city. The study starts with
determining the major factors affecting the consumption pattern of soft drinks and fruit
juices, and ends up with the conclusion as per the state of mind of the average rational
human being. The study concludes that there exists a significant difference between the
consumption pattern of the soft drinks and fruit juices in all age groups. The study also
remarked the frequency of consuming fruit juices is more than that of soft drinks due to
health consciousness of people.
Introduction:
The beverage market is worth $55 billion worldwide. Todays consumers are concerned
with overall health and wellness. As a result, there is significant impact on food and
beverage purchases. Many studies have shown that consumers are as concerned with
good health as they are about maintaining a high quality of life. The soft drink industry is
training people to seek out new products, even the big guys are coming out with limitededition flavors, and consumers are beginning to see that there is more flavor activity going
on in the category. Whether that really nets anybody any sales gains is another thing, but
it is teaching consumers to seek out and try new products. It is also trying to create some
excitement there.
In spite of several challenges and restrictions faced by this industry, it is a roll like
never before. Customer preferences may have shifted, but they are still always on the
look out for a can of coke or a new flavored drink to quench their thirst.
Associate Professor, Indore Institute of Science & Technology, Opposite IIM, Rau, Indore. Ph: 8959304002,
sandhar_simranjeet@yahoo.co.in
2
Assistant Professor, Indore Institute of Science & Technology, Opposite IIM, Rau, Indore. Ph: 9755049750,
dheerajnim@gmail.com
3
Sr. Corporate Trainer, Swami Vivekanand College of Engineering, Near Toll Naka, Khandwa Road Indore. Ph: +919926013399, shikhajjw@gmail.com
SVIM e-Journal of Applied Management Volume I Issue I January-June 2013
Page 39
The size of the Indian food processing industry is around $ 65.6 billion, including
$20.6 billion of value added products. Of this, the health beverage industry is valued at
$230 million (The Great Indian Bazaar). A health aware nation and a rising interest in
maintaining and improving human life are just a few reasons why fruit and vegetable
demand has risen. Campaigns such as "5 A Day" promoted by the World Health
Organization (WHO) encourage people to consume five fruits or vegetables per day. The
food industry has responded to this demand by developing fresh and nutritional products
with conservation techniques that extend the shelf life of the product (Deliza, 1999).
Recent studies have shown that consumers from the developing countries spend almost
40% of their income on food and beverages. On the other hand consumers in developed
countries allocate only about one quarter of their income on these goods (Selvanathan &
Selvanathan, 2003); (Chen, 2001).
The three largest consumed categories of packaged foods are packed tea, biscuits
and soft drinks. The total soft drink (carbonated beverages and juices) market is
estimated at 284 million crates a year or $1 billion (The Great Indian Bazaar). The market
is highly seasonal in nature with consumption varying from 25 million crates per month
during peak season to 15 million during off-season. The market is predominantly urban
with 25 per cent contribution from rural areas. Coca cola and Pepsi dominate the Indian
soft drinks market.
Today the majority of fruit juice products target children; however there is a need
for a nutritional drink for the adult. The purpose of this study is to develop a better
understanding of consumers consumption pattern of soft drinks and fruit juice as well as
the factors that affect these preferences.
Literature Review:
Most of the studies conducted on the customer satisfaction of beverage have been
reviewed in the subsequent section.
Gopi & Arasu, (2012) focused on factor analysis model and its application to
identify consumer preferences for a popular soft drink product in Dharmapuri. The results
depicted that the consumers preferences were characterized by four-factors: branding,
validation and prices, packaging and taste, respectively. Rotational factors successfully
extracted the factor of branding as the dominant factor. According to
SVIM e-Journal of Applied Management Volume I Issue I January-June 2013
Page 40
Hutchings (2003), intensifying the fruit colors could strengthen expectation for the
juice flavor. Consumers with high environmental interests were more likely to pay a
premium for a fruit juice with organic ingredients and a nutritional index on the label
(Bonilla, 2010).
Mevlt Gl, (2012) posited that product types (orange, sour cherry etc.) were
determined as the most important factor on consumers fruit juice purchasing preferences
with the rate of 28.34%. Other important factors were found as price level (16.83%),
having an international quality and food safety certificates (16.14%), being organic or not
(15.21%), production methods (13.06%) and containing sugar additive or not (10.43%).
The qualification set of fruit juice which maximizes consumer satisfaction was determined
as the orange juice which is 100% fruit juice, without sugar additive, organic and has
international quality and food safety certificates and affordable price.
The scientific studies about fruit juice consumption and consumer preferences are
very limited. One of them is the study which performed in Adana urban area, and socioeconomic factors effects on households fruit juice consumption are evaluated in this
study by using Tobit model (Ozdes, 1999). In another study which was performed by
using conjoint analysis, consumer behaviors and competition in meat and milk sector in
Erzurum were evaluated (Topu, 2006). Besides this, fruit juice consumptions
relationships with demographical variables, such as age, race and diets, were evaluated
in some studies in Germany and USA (Lorinczi, 2009). Moreover, Luckow and Delahunty
(Luckow, 2004) revealed their evaluations in their survey in 2004 about the consumers
preferences about orange juice containing functional components.
Dhuna and Mukesh (1984) conducted a study to analyze the pattern of
consumption of soft drinks. A sample of 150 respondents was surveyed regarding their
consumption habits. Analysis revealed that 54 per cent of consumption was in summer
and 46 per cent during other seasons. It was found that about 26 per cent of the
respondents were regular consumers and the rest consumed soft drinks occasionally.
Shanmugasundaram (1990) studied soft drink preference in Vellore town of North
Arcot district in Tamil Nadu. The study revealed that the most preferred soft drink among
respondents was Gold Spot (26%) followed by Limca (24.8%), Sprint (22.8%) and
Thums-up (20.8%). It was found that taste was the main factor for preference of particular
Page 41
brand and, among the media; television played a vital role in influencing consumer to go
for particular brand.
Namasivayam and Vijayakumar (2003) reported the consumption of carbonated
soft drinks in selected urban centres in Tamil Nadu. The study revealed that out of 360
respondents, 20.83 per cent of the respondents had the habit of drinking soft drinks
during travel, 16.66 per cent near home and 16.55 per cent in the bus stand.
Respondents aged less than 26 years consumed more soft drinks invariably in all places.
Among these sample respondents, 70.6 per cent were male and 29.4 per cent were
female. It was also found that 37.22 per cent respondents were students in college/
universities and consumed more soft drinks compared to other categories.
To find out the underlying factors affecting consumption pattern of soft drinks &
fruit juices.
Research Methodology:
The present study is exploratory in nature with survey method being used to
complete the study. The population of the study includes consumers / buyers of soft
drinks and fruit juices. The sample elements of the study were the individual respondents
(Male & Female) with the sample size of 200 respondents. Random sampling technique
was applied to select the sample from the market. Self designed Questionnaire was used
to collect the data for the study. The data was analyzed through the following tools:
1. Internal consistency was established through items to total correlation.
2. Reliability computed to check the questionnaire through Cronachs (alpha), Split
half, Guttman, Parallel and Strict parallel method.
3. Factor Analysis was applied to identify the factors underlying consumption pattern
of soft drinks and fruit juices.
4. Z - Test was applied to evaluate the significant difference between consumption
pattern of consumers of different age groups consuming soft drinks and fruit juices.
Page 42
Item
1.
2.
3.
4.
5.
6.
7.
8.
9.
Value of r
0.466503
0.31904
0.559799
0.492195
0.486237
0.463015
0.684725
0.736873
0.559149
Consistency
Consistency
Consistency
Consistency
Consistency
Consistency
Consistency
Consistency
Consistency
Consistency
Accepted/
Dropped
Accepted
Accepted
Accepted
Accepted
Accepted
Accepted
Accepted
Accepted
Accepted
Table 2: Item to total correlation analysis for consumption pattern of fruit juices
Item
10. I consume Fruit juices when I feel thirsty
11. I consume Fruit juices only in parties & celebrations.
12. I consume Fruit juices without any reason (just like that).
13. Price with quantity induces me to buy Fruit juices
14. As a health drink I buy Fruit juices.
15. As a status symbol I buy Fruit juices.
16. The taste of it induces me to buy Fruit juices.
17. The variety induces me to buy Fruit juices.
18. Season influences me to buy Fruit juices.
Value of r
0.545803
0.332555
0.583548
0.545476
0.579008
0.539946
0.687846
0.641332
0.65663
Consistency
Consistency
Consistency
Consistency
Consistency
Consistency
Consistency
Consistency
Consistency
Consistency
Accepted/
Dropped
Accepted
Accepted
Accepted
Accepted
Accepted
Accepted
Accepted
Accepted
Accepted
The Item to total Correlation was more than the standard value for all the factors
affecting the consumption pattern of soft drinks and fruit juices (refer table 1 & 2), so all
the factors are found consistent in the correlation.
Reliability Measures: Reliability test was carried out using SPSS Software and the test
measures are given below.
SVIM e-Journal of Applied Management Volume I Issue I January-June 2013
Page 43
Soft Drinks
0.676
0.697
0.686
0.676
0.679
0.638
0.643
Fruit Juices
0.735
0.704
0.738
0.735
0.737
0.676
0.681
Validity:
Face Validity of questionnaires was tested and it was found to be very high.
Factor Analysis: Factor analysis was carried out using SPSS software on consumption
pattern of soft drinks and fruit juices.
Table 4: Factors with various items analyzed for consumption pattern of Soft
drinks.
Factors
Customer
Preferences
Societal
Concerns
Eigen value
% of
Total
variance
2.522
1.456
28.021
16.177
Convergence of variance
Loadings
0.791
0.767
0.711
0.656
0.404
0.380
0.745
0.610
0.550
Table 5: Factors with various items analyzed for consumption pattern of Fruit
Juices
Eigen value
Factors
Customer
Preferences
Logical
Concerns
Total
2.590
1.712
% of
variance
28.777
19.024
Convergence of variance
Loadings
0.774
0.770
0.750
0.630
0.421
0.760
0.552
0.527
0.502
Page 44
Z Test
Table 6: Statistics of Z Test
Sample
Combination
Mean value
1.
37.08163
35.7931
2.
3.
Z - value
Standard
value
2.93689
1.96
4.587322
1.96
2.751783
1.96
42.30612
41.48276
35.62857
40.62857
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Page 46
conducted taking different variables into account like satisfaction level, buying behavior
etc. as well as seasonal drinks.
Conclusions:
With the increased importance of health and nutrition, changing life styles and
higher incomes, the Indian food market offers numerous opportunities for new products
and product modifications. The purpose of this study was to develop a better
understanding of consumption pattern of soft drinks and fruit juices of consumers at
Indore city. Results from descriptive statistics for the survey indicated that 42% of the
respondents prefer Soft Drinks and 58% of the respondents prefer fruit juices. Through
the survey it was conveyed that weekly consumption of soft drinks is lower than the
weekly consumption of fruit juices. The majority of the respondents consume soft drinks
and fruit juices at the time of parties & celebrations. The basis of soft drinks consumption
is its taste, price and an aid to put off thirst and for that of fruit juices is the health
consciousness of consumers. An important finding that emerged out of the survey was
that 61% of the respondents think that advertisements affect their purchases and 39% of
the respondents think that advertisements do not affect their purchases. The study
concludes that there exists a significant difference between the consumption pattern of
the soft drinks and fruit juices in all age groups. The study also remarked the frequency of
consuming fruit juices is more than that of soft drinks due to health consciousness of
people.
Page 47
References:
Bonilla, T. (2010, August). Analysis of consumer preferences toward 100% fruit juice
packages and labels. Costa rica.
Chen, D. L. (2001). World Consumption Economics. World Scientific, NJ .
Deliza, R. H. (1999). An investigation using the repertory grid and focus group methods of
the package features affecting consumer perception of fruit juice. Brazilian Journal
of Food Technology , 2, 63-71.
Dhuna, M. (1984). An Analysis of Consumer Behaviour. International Journal of Marketing
, 14 (7), 26-28.
Gopi, K., & Arasu, R. (2012). Consumer preferences towards soft drink products in
dharmapuri a factor analysis evidence. Namex International Journal of
Management Research , 2 (1), 38-47.
Hutchings, J. B. (2003). Expectations and the Food Industry: The impact of color and
appearance. Kluwer Academic Plenum Publishers .
Lorinczi, K. (2009). Health factor in soft drink consumption: German example. Applied
Studies in Agribusiness and Commerce , 3 (3 & 4), 41-44.
Luckow, T. a. (2004). Consumer acceptance of orange juice containing functional
ingredients. Food Research International , 37 (8), 805-814.
Mevlt Gl, M. G. (2012). The analysis of households purchasing preferences for fruit
juice in Turkey. Journal of Food, Agriculture & Environment , 10 (3 & 4), 119-123.
Namasivayam, N. V. (2003). A study on socio economic profiles and place of
consumption pattern of carbonated soft drinks in selected urban centres in Tamil
Nadu. International Journal of Marketing , 33 (5), 23-27.
Ozdes, A. O. (1999). Analysis of concentrated fruit juice demand using the Tobit Model.
Tr. J. of Agriculture and , 23, 493-499.
Page 48
S., S. (1990). Demographic and psychological factors that influence the pattern and
selection in soft drinks and tetra pack drinks - A study in Vellore. International
Journal of Marketing , 20 (7), 102-106.
Selvanathan, E. A., & Selvanathan, S. (2003). International Consumption Comparisons:
OECD vs LDC. World Scientific, NJ .
The Great Indian Bazaar. (n.d.). Retrieved 2 20, 2013, from Indian Bazaar:
http://www.ibef.org/download/indianbazaar_jan19.pdf
Topu, Y. (2006). Brand competition and consumer behaviours in dairy products: A Case
Study in Erzurum Province. Atatrk University.
Page 49