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Syanopsis OF ": To Study of Customer Buying Behavior in Wine Shop V/s Tavern in Jalandhar and Phagwara Junction
Syanopsis OF ": To Study of Customer Buying Behavior in Wine Shop V/s Tavern in Jalandhar and Phagwara Junction
Syanopsis OF ": To Study of Customer Buying Behavior in Wine Shop V/s Tavern in Jalandhar and Phagwara Junction
OF
“ To Study of customer buying behavior in wine shop v\s tavern in
Jalandhar and Phagwara junction”
SUBMITTED TO
JALANDHAR (shahpur)
Executive Summary
In the present era of competition the vary existence of any business depends upon
its customer bank. Customer is the king in present business world. Gone are the
days when producer or seller used to rule the business world. Today customer is
the main pillar on which any business stands. Due to entry of the MNC's there is
cut throat competition in the market.
They have already established in urban markets and now rural and suburban areas
are the thrust areas.
I have chose "To Study of customer buying behavior in wine shop v\s tavern in
Jalandhar and Phagwara junction" to have a deep knowledge of consumer
behavior regarding wine shop.
In my research I have tried to find out main brand used? Why these brands are
used? Factor affecting, their purchase behaviour like price, quality, results, etc. I
also have tried to find out relation in buying behavior and age, sex, family income.
The research study is a comprehensive survey to reach deep in the consumption
pattern of the target customer.
INTRODUCTION
It’s easy for overseas producers to lump Asia into one large market, but the
reality is that it comprises many markets, all acting independently with their own
tastes and preferences. What is popular in Japan isn’t necessarily popular in China.
So which markets hold the best opportunities for an overseas producer of grape
wine? A “New World” vintner has read that wine sales are increasing faster in
Asia than anywhere in the world. He produces a variety of dry, red wines and
would like to know what opportunities are there in Taiwan? He decides a little
research is necessary. He would like to know what the tastes of the Taiwanese
wine consumer are. How much will they pay for a bottle of wine? Which
distribution methods would reach his best target market? In modern competitive
contexts, marketing strategies are often induced by changes in the consumer and
commercial environments. The most important factors that influence consumer
behaviour and thus the commercial environment are: i) demographic/social, ii)
distribution changes, iii) social issues, iv) environmental. Nowadays, the alcoholic
beverages consumption model is changing consistently with the general aging of
the population. The progressive growth of low alcoholic product is expected to
continue. Wine consumption has been growing in advanced countries like Italy
since the 1990s. The increase in consumption has been associated with an increase
in the number of producers competing within the wine industry. The wine sector is
very unique mainly due to its size and to the level of its segmentation (Qenani-
Petrela, Wolf and Zuckerman, 2007). Moreover, the complexity of the purchase
decision process undertaken by the typical consumer seems to be an important
issue. From a theoretical point of view, all products have both tangible and
intangible aspects in differing proportions, and wine proves not to be an exception
(Edwards and Mort, 1991). Firstly, a food or beverage product has few or no
intangible characteristics. Despite this, wine is a product with a strong typicality,
thus includes both tangible and intangible features. In fact, the purchase decision
process seems to be significantly affected by both these categories. Expert
consumers are able to appreciate the colour, smell and bouquet, they can taste the
flavour and finally touch the moisture. Consequently, especially referring to the
buyer of fine wines, consumers purchase more than simple tangible aspects of the
wine. Such a consumer shows a complex buying behaviour due to intangible
factors, which associates the wine consumption to special occasions, or with fine
dishes. In this context, wine drinking experience seems to be compared to the
experience offered by fine arts or music. Moreover, the typical wine consumers
seek other benefits, such as the belief that they are enjoying quality product, by
which a variety of emotions can be experienced. Some issues arise when
communicating the benefits related to such complex experiences, especially
dealing with wines that could be considered a high intangible content product.
Thousands of wine producers, variously sized, nowadays compete for a portion of
the expanding and profitable wine market. More recently, following the entrance in
the market of a number of producers, it is becoming more and more important for
companies to recognize and exactly identify the wants and needs expressed by
consumers, in order to survive in such a highly competitive arena. In this paper it
has been found that wine consumer‟s preferences vary by a number of factors, i.e.
age, gender, etc. Additionally, wine consumption reasons seem to change
depending on both demographic and social characteristics of the consumer.
Proposal:
This proposal deals with establishing a manufacturing unit for wine and wine like
beverages from other fruits in the state of Andhra Pradesh. The wine produced will
meet part of the demand from growing domestic market and part of the production
can be exported. Government of Andhra Pradesh has issued G.O.framing new rules
on Winery projects.
Very low fee of Rs. 2000 per annum is fixed as license fee to encourage this
industry. Government may call for applications for grant of letters of intent in the
near future. A wine manufacturing unit can be set up with capital investment of
Rupees two to three crores. Apart from grapes other fruits like mango can be used
to make fruit wines. Wine can even be made from rice.
Product mix:
Andhra Pradesh is a leading producer of a variety of tropical fruits, mango being
the number one. Substantial quantity of grapes is also produced, mostly of the table
variety. It is proposed to exploit this diversity of fruit wealth to produce wines and
wine like alcoholic beverages for domestic and export markets.
Market:
The Indian Wine Industry is growing at 25-30% per annum and currently stands at
4.6 million litres in volume terms and Rs 450 crore in value terms. The wine
market is expected to grow to 8.3 million litres by 2010. Per capita consumption of
wine remains extremely low in India; however, there is growing consumer interest
in wine with a number of wine clubs opening in Delhi, Chandigarh, Hyderabad and
Bangalore. Nearly 80 per cent of wine sales are accounted for by the major cities,
especially New Delhi, Mumbai, Chennai, Kolkata, Pune and Bangalore. West India
accounts for over 41 per cent of total volume sales of wine in India, followed by
North India, which accounts for 29 per cent of volume sales. Nearly 90 per cent of
wine sales are for still (that is, red and white) wines. Sparkling and rose wines, in
contrast, target select segments of particularly affluent consumers. The main
market is for wines selling at Rs.300 per bottle. Even though cheaper varities are
available, the market is not growing as fast as medium priced wines.
Manufacturing process:
The manufacture of grape wine involves following basic steps:
• Crushing of Grapes
• Alcoholic Fermentation
• Malolactic Fermentation, if Required
• Bulk Storage and Maturation of Wine
• Racking/Clarification and Packaging
Technology:
Wine making technology is simple. However wine making is still considered an art
and guidance of a master wine maker is a must
Raw materials:
Grapes and other fruit, yeast are the main raw materials
Utilities:
Good quality water and power are the utilities required.
Project cost:
A unit of 5 lac liters per year capacity can be planned with investment of 5 to 6
crores. This does not include the cost of grape plantation
Apitco’s consultancy.
Even though substantial table varieties of grape are grown, Andhra Pradesh is not
on the wine grape area map. However as per some experts, few varieties that can
yield fairly good quality wine can be grown here. In such conditions how to set up
a viable winery project in A.P.Making wine like beverages from other fruit?
Blended wines? Fortified wines? These are some strategies to set up a viable
project. APITCO can provide turnkey assistance starting with detailed feasibility
study
Wine is an alcoholic beverage, typically made of fermented grape juice. The
natural chemical balance of grapes is such that they can ferment without the
addition of sugars, acids, enzymes or other nutrients. Wine is produced by
fermenting crushed grapes using various types of yeast. Yeast consumes the
sugars found in the grapes and converts them into alcohol. Different varieties of
grapes and strains of yeasts are used depending on the type of wine being
produced.
Although other fruits such as apples and berries can also be fermented, the
resultant wines are normally named after the fruit from which they are produced
(for example, apple wine or elderberry wine) and are generically known as fruit
wine or country wine (not to be confused with the French term vin de pays).
Others, such as barley wine and rice wine (i.e., sake), are made from starch-based
materials and resemble beer and spirit more than wine, while ginger wine is
fortified with brandy. In these cases, the use of the term “wine” is a reference to
the higher alcohol content, rather than production process. The commercial use of
the English word “wine” (and its equivalent in other languages) is protected by law
in many jurisdictions.
Wine has a rich history dating back to around 6000 BC and is thought to have
originated in areas now within the borders of Georgia and Iran. Wine first appeared
in Europe at about 4500 BC in the Balkans, and was very common in ancient
Greece, Thrace and Rome. Wine has also played an important role in religion
throughout history. The Greek god Dionysus and the Roman equivalent Bacchus
represented wine, and the drink is also used in Catholic Eucharist ceremonies and
the Jewish Kiddush.
The word “wine” comes from the Proto-Germanic “*winam,” an early borrowing
from the Latin vinum, “wine” or “(grape) vine,” itself derived from the Proto-Indo-
European stem *win-o- (cf. Hittite: wiyana, Lycian: Oino, Ancient Greek οῖνος –
oînos, Aeolic Greek ϝοίνος – woinos).[8][9] The earliest attested terms referring to
wine are the Mycenaean Greek me-tu-wo ne-wo meaning “the month of new wine”
or “festival of the new wine” and wo-no-wa-ti-si meaning “wine garden”, written
in Linear B inscriptions.
The wine market has grown rapidly in the recent years. Based on a VINEXPO
study, the wine market was US$88M in 2004, compared to 2002 which was
US$60M. In terms of volume, in 2004 69 million liters were sold compared to
2002 when 48 million liters were sold. VINEXPO expects that wine consumption
in will reach 126 million liters by 2010. Part of reason behind this growth in
consumption is that many Taiwanese are switching from liquor to wine due to
perceived health benefits.
Consumer behaviour is the study of when, why, how, and where people do or do
not buy a product. It blends elements from psychology, sociology, social
anthropology and economics. It attempts to understand the buyer decision making
process, both individually and in groups. It studies characteristics of individual
consumers such as demographics and behavioural variables in an attempt to
understand people's wants. It also tries to assess influences on the consumer from
groups such as family, friends, reference groups, and society in general.
Each method for vote counting is assumed as social function but if Arrow’s
possibility theorem is used for a social function, social welfare function is
achieved. Some specifications of the social functions are decisiveness, neutrality,
anonymity, monotonicity, unanimity, homogeneity and weak and strong Pareto
optimality. No social choice function meets these requirements in an ordinal scale
simultaneously. The most important characteristic of a social function is
identification of the interactive effect of alternatives and creating a logical relation with the
ranks. Marketing provides services in order to satisfy customers. With that in mind, the
productive system is considered from its beginning at the production level, to the end of the
cycle, the consumer
Six Stages to the Consumer Buying Decision Process:
2. Information search--
Internal search, memory.
External search if you need more information. Friends and relatives (word
of mouth). Marketer dominated sources; comparison shopping; public
sources etc.
Our research focus is the customer buying behavior in wine shop v\s tavern
in jalandhar and phaagwara junction, and we used many materials related to or
referring to wine market .
The wine market remains highly fragmented despite three waves of industry
consolidation and mergers that have led to the current market condition
(International Center for Alcohol Policy [ICAP], 2006). Currently a little over a
thousand brands control about a third of the total wine market. Halstead (2002)
pointed to this lack of large and dominant brand names as a key differentiating
factor in the wine market, in contrast to most other FMCG (Fast Moving Consumer
Goods) markets. This is a point of optimism for potential entrants into new
markets, as retailers and consumers are already accustomed to access to a variety
of brands.
This optimism extends to Taiwan, and Wang (2004) reported that there are many
recent entrants into the Taiwan wine market. These are increasingly new world
wines. New world wines are those produced in non-traditional wine grape
cultivation areas. Australian, North and South American, and North African wines
are all considered new world wines. Wang pointed to a great variety of new
marketing strategies, concepts, and techniques these new world wines utilize as
they enter the Taiwan market.
The supermarket, hypermarket, and convenience store channel was further
analyzed by Tham (2006), who concluded that this channel makes more wines,
especially lower-end ones, available to consumers. Although specialty shops
maintain sales growth, there is an increasing tendency for convenience and chain
store shopping, particularly in the East Asian market.
The Anonymous writer for Just-Drinks reported that young adults (18–24 yr
old) tend to spend more money than older adults on wine purchases. This is
because young adults are more likely to use price as an indication of quality.
Significant to the Taiwan market, Anonymous also found that young people tend to
purchase wine at convenience stores. Convenient stores are a ubiquitous feature of
Taiwanese urban landscape, giving these consumers easy access to their
distribution channel of preference.
Le Bel’s (2005) observations about labels and gender, and his conclusions
regarding how males and females respond to different kinds of labels makes a
strong case for attentiveness to gender demographics during label and package
design. In any case, Le Bel’s results indicated that males, at least, respond more
strongly to the suggestion of a friend or acquaintance then to a label or packaging
feature.
Drinking Habits Among 18-24 Year-olds 2010 This report looks at attitudes to
drinking among this age group with a particular focus on their drinking habits as
well as the issue of binge drinking. A section deals with trends as a result of the
recession.
Champagne Report: The Drinks Business 2010 (The Drinks Business Ltd) A
report that includes sections on trends, international markets, travel retail, UK
retail and on-trade sectors as well as a view on market consolidation and a
directory section of key contacts.
Ravazzoni (2006) stated that the more the product is linked and identified with a
specific territory, the more difficult is to export and promote it on foreign markets.
An exception could be represented by ethnic communities long established abroad,
because of their attitude to appreciate the unique features of the typical product
strongly linked with their country of origin.
McDougall and Lockshin, 2000; Harpers, 2001) have argued that the wine
industry has been shifting its focus from the old world wines – mainly from France,
Italy, Germany and Spain – to the new world wines, typically produced by
countries like Chile, California, Australia, South Africa and New Zealand.
However, global changes in the production and consumption of wine and new free
trade agreements among countries will influence the future development of this
industry (Costa, 2001). Beverland (2000) suggests that wine consumption trends
may have significant problems for small producers in the near future, because the
number of consumers is progressively going to fall, but at the same time they are
willing to pay more for it (Berger et al., 1998). Thus, small sized wine producers
have to concentrate on producing high quality and unique featured wines with
elevated brand recognition, and thus commanding higher prices. Therefore, brand
awareness could be considered as the first and simplest basis of brand equity in
wine (Lockshin and Spawton, 2001). Previous studies (Folwell, 1980) rated the
brand as the most important factor of wine selection as well advice and positive
word-of-mouth of friends or relatives was rated the second most important factor.
RESEARCH METHODOLOGY
Introduction:
Customer is attracted only towards the product with low price and high
quality. So the company that will satisfy both, primary and secondary motives of
customer can only
survive in this new millennium. Research design is the determination and
statement of the general research approach or strategy adopted for a particular
project. It is the heart of planning. If the design adheres to the research objective it
will ensure that the client’s need is served. The study of the consumer’s behaviour
is Exploratory and Descriptive type of research, which is useful to find the most
likely alternatives.
Research definition:
DATA COLLECTION
Under it we discuss the various sources from where we will collect the data.
Primary data:-
Primary data has been collected directly from the field. Primary
data was gathered by the means of interviewing the respondents with the use of
questionnaire that I prepared. Survey is the research approach using this research
project. Surveys are the best source of descriptive research. The research
instrument chosen was a questionnaire for the collecting the primary data.
Questionnaire was the most popular and useful method for surveying. It helps in
collecting the information from the framed question, to get maximum necessary
data required for the research. The questions are subjective and objective in nature.
Thus, the questions helped in various ways. Survey method is undertaken to find
the customer satisfaction and opinion. A survey was conducted among the youth of
jalandhar and Phagwara City by the aid of well structured questionnaire.
Secondary data:
Secondary data means data that is already available that is
they refer to the data which have already been collected and analyzed by someone
else. Secondary data was mainly collected from company records, marketing
personnel, business magazines & brochures, internet and references from Library.
The data was then categorized into various groups and then I deduced the pattern
of relationship that existed among the data groups. For this, editing was done to
assure that the data was accurate, consistent with other facts gathered.
SCOPE OF STUDY:-
The scope of the study objective is to examine the various factors which
play their part in customer buying behavior and the major dissatisfaction areas for
the customers. The study considered the youth area of jalandhar and Phagwara
Survey to know the various factor taken into consideration by the youth at
the time of buying.
1 Are you aware of brands available in market ? If yes then name few of them ?
a. _______________________
b. _______________________
c. _______________________
d. _______________________
2 . Give the ranking to following factors that influence your purchase decision while
buying wine shop ?
Quality
Price
Availability
Brand image
Promotional Offers
Advertisement
Ranges available
5). How long you have been using above stated brand ?
a. Last six months b. 6 months to 1 year
6). Which other brands had you used before this current brand ?
_______________________________________________________
7). What are the reasons for your shifting from past brand to current brand?
g. Others.
8). What is that you particularly like about current brand that you are using ?
_______________________________________________________
_______________________________________________________
10 Are you satisfied with the results of the brand you prefer ?
a. Yes b. No
11) Any suggestions you want to give for further improvement in brands
available ?