customers buying behaviour

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Literature Review(Factors that influences the customers buyingbehaviour towards healthy and fresh grams andgroundnuts)Table of Content1
STITLE..............................................................................................................................................1LITERATURE REVIEW................................................................................................................1Indian Savoury Market................................................................................................................1Consumer trends and drivers in Savoury market.........................................................................4Health Concerns among the Indian consumers...........................................................................5Factors influencing consumer buying behaviour in savoury market...........................................6Sustainability and expansion of Savoury market in Goa.............................................................8Consumer trends and drivers in Savoury market Goa...............................................................10REFERENCES..............................................................................................................................13QUESTIONNAIRE FOR BULK BUYING CONSUMERS........................................................15QUESTIONNAIRE FOR SUPPLIERS.........................................................................................17QUESTIONNAIRE FOR OWNER...............................................................................................181
TITLESustainability and Expansion Possibilities of P.R. Usapkar’s grams and groundnutstore.LITERATURE REVIEWThis chapter includes different range of literature sources. It includes past researchfindings from previous researchers. Under this section, an effort is made to establish linkbetween existing literature and own research. The researcher is required grab debates in the studyarea and further he tries to bring his own inputs, views and thoughts. The chapter holds a greatimportance from theoretical point of view. It is essential to understand all the terms, conceptsand theories and the whole conceptual framework related to the subject. All the facts andrelationships discovered by various literatures are analyzed. Researcher is required to put lot ofattention and focus on this section (Boer and et.al, 2004). It aids in developing conceptualknowledge related to the subject. The topic of Savoury market has gained considerable attentionfrom several scholars. It is expected that this literature review will achieve its goals andobjectives.Indian Savoury MarketIndia has now positioned on its way to become a global important packaged food market.The country offers great opportunity for several stakeholders across the food chain. Thepopulation has now crossed over 1.2 billion and spending power of middle class consumers isalso rapidly increasing. Large variety of dairy products, baked goods etc accounts for the largestproportion of packaged food sales in India (Sebastian, Gowri and Prakash, 2005). A bulk ofgrowth is estimated from impulse or indulgence products such as confectionary, ice-cream andsweet & savoury snacks. These products are growing rapidly in the economy, serving the needsof people of all age groups in well manner. The sales of these products are driven by differenttypes of factors such as demographic, social, political etc.Country has one of the youngest populations globally as the mean age of the people isjust below 29 years in 2014. Growing number of young Indians are having high disposableincomes. Lower propensity to save can be seen in their habits and they are less afraid to showwhat they eat and drink. It is driving the sales of premium and value added products. Thetraditional grocery retailers account for almost 90% of the overall packaged food value sales. It is1
a key to future growth. Indian local independent retailers like Kiranas, are viewed as the bulk ofpackaged food sales (Dixit, 2006).In India market of sweet and savoury has grown by 24%. Healthy snacks will be the newbuzzword in sweet and savoury snacks. Manufactures of savoury products are looking to developproducts which are healthy as well as tasty. Baked products are doing well in the market ascompared to unbaked items. Consumers give more preference to the ingredients which are usedin manufacturing. In Indian market, products with no transfats and no storage are well acceptedamong the urban population (Arya, 2014). However there is a need to focus on rural market. Therural market has become important because household disposable income of the people hasimproved and there is a wider distribution reach of producers. Robust growth is anticipated fromcategory called “extruded snacks”. The savoury snacks will not be affected by other snackcategories such as sugar and chocolate confectionary, snack bars and ice-cream. One of the mostenlightening advantages of savoury snacks is that they do not contain sugar and can be consumedwith coffee or tea. Several producers are emerging with innovative products with local flavourswhich are not common for other types of snacks. It has been seen that independent small grocerswill continue to be the most popular channel for sweet and savoury goods in India. Presence ofmodern retail stores is a threat to independent sellers as the stores come up with wider choices ofproducts and with more comfortable shopping environment (Neethirajan and Jayas, 2011). It isevident that future of the country lies in its villages because 68% of the population lives in thevillages.Reaching into the rural India, is of great significance for packaged food manufacturersand retailers if there is a need to increase the sales and profit margins. It is to be noted that ruralIndia has its own needs and challenges which needs special attention. In the area of consumerfoodservice, India has witnessed one of the fastest growth rates. Growth is specifically high inthe fast and pizza foodservice categories. It carries both positive as well as negative implicationsfor the packaged food industry (Tripathi, Mehrotra and Dutta, 2010). As the country goesthrough rapid development, changes taking place in the dynamics of population. It is essential tocapitalize on the new emerging consumer behaviour which is fundamental to the future growth.It is particularly significant in the Savoury Snacks which includes product segments likePopcorn, Potato chips, pretzels etc. Hence it is essential to identify the consumer groups andtrends driving the market behaviour. It has been observed that urban consumers consume the2
Savoury Snacks in disproportionate manner. Suppliers are required to take into considerationsome specific trends which affect the behaviour of urban consumers for the purpose of takingadvantage of their above average consumption. For instance the Better Off wealth group in Indiaholds 51% of the Potato Chips market on the basis of value despite of holding only 44% ofpopulation (Laeequddin and et.al, 2009). It indicates that there is high potential for premium andvalue added products. According to the reports, savoury snacks market is the second mostvaluable market in India. Trends such as changing age structures, personal space, time etc havean influence on their consumption.Theabove figure shows the performance of leading companies in Indian Savoury market. Three yearsago the sector was dominated by western snacks such as potato chips, finger sticks. Pepsi FritoLays and ITC Foods were the major companies in these product segments. Great changes can benoticed in the behaviour of the consumers. For instance, they prefer to buy branded namkeeninstead of loose products from the bakeries due to hygiene factors (Yam, Takhistov and Miltz,2005). The boom in branded namkeen has been seen because people are upgrading fromunbranded segment to branded segment. According to the reports, branded salty items such asdal, chivra, bhujia, nuts etc accounted for 52% of total salty snacks sales. A sales of Rs 94003Figure1: Market Leaders in Indian Savoury market(Source: Sarangam, Chakraborty and Chandrasheker, 2015)
crore was recorded in the year ended June along with multinational as well as home growncompanies. Experts believe that this market has huge potential despite of the fact that it is anunorganized market.Consumer trends and drivers in Savoury marketEthical and traditional snacks account for the largest market share in terms of volume.However India has a leading position in terms of volume but it does not translate to value due tolow prices of Savoury snacks. Country comes on fourth position with respect to volumeconsumption at the global level. Different types of people carry different types of behaviour. It isseen that Indian men consume more savoury snacks as compared to women. Old age people arenot generally fond of these kinds of products (Lagarón, 2011). Frequency of males is higher interms of consumption of these snacks. Further kids can be classified as another category whichconsumes high amount of snacks in the country. Hence the manufactures of these productsmainly targets the kids and people of young generation. It is also seen that habit of consumingsavoury snacks is increasing significantly among the people. It is because lot of convenience andeasiness is attached with their consumption. The products are easy to eat as they are alreadybaked. There is no need to bake or fry as they just have to open it and eat. There are many trendswhich are driving the consumption of these products. These are as follows:Changing lifestyle- A change in the income level and spending pattern of people alsochanges their attitude towards the lifestyle (Staples, 2014). When the income is high, aconsumer is likely to spend more on consumption of products and services. The lifestylekeeps on changing from time to time as per the market trends. This changing lifestylebecomes responsible for availing of goods and services. It has been noticed that savouryproducts are meeting the age-specific needs of the consumers.The connectivity mega trend -Indian consumers are significantly influenced by themedia channels while selecting the products. Product branding and advertising is alsoimportant for the consumers. It is required that products are to be advertised andpromoted in effective manner. People will come to know about the goods through mediachannels only (Raghavan, 2007). It has also been seen that marketing trends are alsochanging significantly and companies are required to create awareness about theirproducts among the masses.4