MAJOR RESEARCH PROJECT

ON
A Study of Critical Factors Responsible
for The
Low Sales of Packed Atta

Submitted to:-

(A Research Synopsis submitted as partial fulfillment for the

award of the Degree of Masters of Business Administration)

(2015-2017)

UNDER GUIDENCAE:
SUBMITTED BY:
Prof. NEHA CHOUHAN RAHUL
BADGUJAR
MBA 4 rd
Sem.

1
 Roll
No.:52770025
Spec.:-
Finance and Marketing

CERTIFICATE

This is to certify that Rahul Badgujar, student of MBA IV Sem.

program has here, with proposing to choose the major research
project titled A Study of Critical Factors Responsible for The Low
Sales of Packed and prepared this report under my guidance and
supervision.

Faculty Guide
Prof. Neha Chouhan
Faculty MIST Indore

2
 DECLARATION

I hereby declare that the synopsis of my MRP entitles A Study of Critical

Factors Responsible for The Low Sales of Packed. Has been prepared
under the valuable guidance and supervision of Prof. Neha Chouhan, faculty of
MIST in partial fulfillment for the course requirement of MBA from DAVV.

To the best of my knowledge and belief the information, facts, figures that are
presented in this report are actually based on my own work.

Rahul Badgujar
MBA 4th Sem.

3
 ACKNOWLEDGEMENT

Expression of feelings by words makes them less significant

when it comes to make statement of gratitude.
The most awaited moment of successful completion of an
endeavor is always a result of people involved explicitly therein
and it is impossible without the help and guidance of the people
around.
At the outset, I would take this opportunity to express my sincere
most gratitude towards Dr. MS Murthy, Director, Malwa Institute of
Science and Technology, Indore, for providing me the opportunity
to undertake and accomplish this project.
It gives me pleasure to express my most profound regards and
sense of great indebtedness and sincere gratitude to Prof .Neha
Chouhan Faculty Guide, Malwa Institute of Science and
Technology Indore, for his untiring help, valuable guidance and
kind supervision, which were the main stream to bring this work
to present shape.
I am also thankful to Dr.Mamta Vyas and all the respected
professors and my friends who helped me directly or indirectly in
giving shape to this report.

4
Rahul Badgujar

MBA IV Sem

CONTENTS

Title Page No.

Chapter 1: Introduction 6-12

1.1 Conceptual Framework
13
1.2 Rationale Of The Study
14-15
1.2 Review Of Literature
16
1.4 Objectives Of The Study

Chapter 2: Research Methodology 17-22

COMPANY PROFILE 32-26

Chapter 3 : Results And Interpretation 27-42

Chapter 4 :Suggestions and Conclusion

43-44
4.2 Conclusion

4.4 Limitations 45
Chapter 5: References 46-48

Appendices 49-57

5
 CHAPTER-1

INTRODUCTION

1. INTRODUCTION

Food is powerful symbol of cultural identity; wheat considered to be a staple part of diet for most
of northern and western part of India, is also finding its way into the culinary habits of the south
and the east where rice has traditionally ruled the platter.

The bulk of wheat is converted into whole wheat flour or Atta, used to make flat bread or roti.
While Atta and roti are central to Indian food, packaged atta is a novel concept. The market is
characterized by traditional chakki atta, where the housewife buys grain and has it freshly ground
in a local flour mill or chakki. The current size of branded packaged atta is approximately one
million tons or 2.2% of total market of approximately 45 million tones.

Consumption of Packaged Atta

Packaged Atta Unpackaged Atta

2%

98%

6
It is a country of unity in diversity. But there is not much variation in the food habits of people.
Particularly when it comes to main component of Indian diet, Roti is indispensible. Except for a
few states in the south, rotiis the main course of Indian food. Roti is made of wheat flour. Thus
considering the amount spent on food, approximately 20 per cent of food expenditure is on flour.
In this study atta is going to be used in place of wheat flour.

India has seen rapid economic growth in the past two decades after the new economic policy.
The economic growth has certainly bettered the life style and standard of living of the middle
class, if not rural Indians. The changing life style and the aggressive marketing of food items
have completely changed the buying pattern of consumers. Consumers are buying packaged oil,
masale, leaf tea, pickle, beverages, rice, fruits and what not. The penetration is so intense that
people are buying one rupee water pouches.

In the light of such changing scenario, is seems pretty strange as why the packaged atta industry
is not keeping the pace with the growth of other packaged items in India. The branded atta
market (estimated between 2.3-3 lakhs tones and valued at Rs 400-600 crores) is increasing in
the last few years. According to some other estimates merely five per cent is the consumption of
packaged atta out of total consumption.

Packaging Industry in India

An increasing population and growing consumer demand for packaged foods has forced food
and beverages industry to look at new technologies that provide flexibility, ease of operation and
constant tracking of the production process. Complete transparency is required along the
production process for assuring consumers health and hygiene. This demands continuous
monitoring and efficient traceability of the entire production process in the food manufacturing
plant.

Interest in biodegradable disposable plastic items has steadily grown over the last decade.
Disposable packaging materials used to ship and protect purchased items as well as disposable
containers used for food and drink are of special interest. The idea that one time use items can be

7
disposed off with the peace of mind, that they will not remain for centuries in a landfill, or as
litter, is one of the tenets driving the recent interest in "green" technologies and lifestyles. With
packaging materials, the reduction in usage of raw materials, re-use and recycling is of course
the best route to sustainable lifestyle. However, for various reasons, in practice, much of the
material ends up being discarded to a landfill or accidentally shows up as litter. For these
instances, it is advantageous to have a plastic material that would biodegrade when exposed to
environments where other biodegradable materials are undergoing decay.

Market

Indian Food and Beverages forecast (2007-2011) gives an in-depth analysis of the present and
future prospects of the Indian food and beverages industry. It looks into the industry in detail
with focus on organized food retailing, consumer food purchasing behavior, food processing
industry and packed/convenience food industry. This report helps clients to analyze the factors
and examine the opportunities critical to the success of food and beverages industry in India.

With vast population base, growing middle class and strong macroeconomic environment, the
Indian food & drinks market has emerged as the one of the fastest growing segments in the
Indian retail industry. Rapid lifestyle transformation, particularly among those living in urban
areas, has resulted into a dramatic increase in the demand for processed or health food, packaged
and ready-to-eat food products. Arrival of food multinationals and proliferation of fast food
outlets have further added to the growth in this industry. The changing scenario of the retail
industry, like opening up of new supermarkets/hypermarkets, shopping malls and fast food
outlets, coupled with favorable industry trends, is about to bring radical shifts in the food & drink
industry, says Indian Food and Drinks Market: Emerging Opportunities, a latest industry
analysis by RNCOS.

Almost all the segments analyzed in the report are found to be growing at rapid pace even in the
phase of economic crisis, especially the alcoholic drinks segment, which is expected to reach 3
Billion Liter mark by 2012 from around 1.95 Billion Liters in 2008, has been outperforming
other segments in terms of sales growth and concreting a solid platform for stiff competition in
the domestic market among existing as well as new market players.

8
The low brand loyalty and price-sensitive consumer behavior is still preventing the Indian
market to unfold its full potential. However, it will require balanced brand portfolio strategies,
comprising of diverse product mix with superb level of quality and that too on an affordable
price. This is expected to result into an overall market progress in which the consumer will be
benefited the most.

The report provides in-depth research and rational analysis on the food & drinks industry in
India. It provides detailed overview of the consumption patterns of Indians in various food
segments, like milk, fruits, vegetables, meat, etc. The beverage segment talks about the type of
beverages, their sales and consumption patterns among the Indian populace. The report aims at
assisting clients in analyzing the potential growth areas, challenges and drivers critical for the
Indian food & drinks industry.

Opportunity

Supermarket sales will expand at a much higher rate than other retail formats. This is because
greater number of higher income Indians will prefer to shop at supermarkets because of
convenience, higher standards of hygiene, and attractive ambience.

It is expected that fruit consumption will increase at a CAGR of 4.33% for the period spanning
from 2007-2011, highest among all the food products taken in this report.

The processed-food market is the main focus for foreign companies as this segment is
underdeveloped and presents enormous potential for growth. The growth of modern, organized
retailing in contrast to the kiosks and small shops from which Indians have been purchasing
food traditionally will also increase the demand for value-added foods.

Rising household incomes, increasing urbanization, changing lifestyles and the rapid growth of
the private-sector and dairy-processing industry should lead to greater demand for value-added,
milk-based products, such as processed cheese, table butter and ice cream.

9
Rising incomes will make fish more affordable for a larger segment of the population. It is
expected that the consumption per head will increase at a CAGR of 3.45% for the forecasted
period.

The growth rate of soft drink sales will decelerate during the forecasted period due to pesticide
contamination issues and growing popularity of fruit juice drinks and bottled water.

Coffee consumption is likely to expand at a rapid rate during the forecasted period. It is expected
that it will increase at a CAGR of 10.05% for the period spanning from 2007-2011.

Ready to cook food

The ready-to-cook food category has been one of the rising stars of the food industry. Since the
inception of the category, it has shown strong growth outstripping its nearest competitor, the
ready meal. Ready-to-cook foods are consistent with modern consumer trends towards greater
involvement in cooking and the desire to use natural, unprocessed ingredients.

The market has continued to grow although the rate of growth is slowing. In 2008, the market is
expected to grow by nearly 8% to 543 million. Household penetration of ready-to-cook foods
has steadily increased. However, consumer attitudes towards ready-to-cook foods are
deteriorating with increasing numbers questioning their role.

This report reviews recent developments in the ready-to-cook food market with a special
emphasis on interpreting the impact of changing consumer attitudes on future sales. It also aims
to test the following hypothesis: Is the read.

2. Introduction to Food Industry

10
India is the world's second largest producer of food next to China, and has the potential of being
the biggest with the food and agricultural sector. The total food production in India is likely to
double in the next ten years and there is an opportunity for large investments in food and food
processing technologies, skills and equipment, especially in areas of Canning, Dairy and Food
Processing, Specialty Processing, Packaging, Frozen Food/Refrigeration and Thermo Processing.
Fruits & Vegetables, Fisheries, Milk & Milk Products, Meat & Poultry, Packaged/Convenience
Foods, Alcoholic Beverages & Soft Drinks and Grains are important sub-sectors of the food
processing industry. Health food supplements are another rapidly rising segment of this industry
which is gaining vast popularity amongst the health conscious consumers.

India is one of the worlds major food pr7oducers but accounts for less than 1.5 per cent of
international food trade. This indicates vast scope for both investors and exporters. Food exports
in 1998 stood at US $5.8 billion whereas the world total was US $438 billion. The Indian food
industries sales turnover is Rs 140,000 crore (1 crore = 10 million) annually as at the start of year
2000. The industry has the highest number of plants approved by the US Food and Drug
Administration (FDA) outside the USA.

India's food processing sector covers fruit and vegetables; meat and poultry; milk and milk
products, alcoholic beverages, fisheries, plantation, grain processing and other consumer product
groups like confectionery, chocolates and cocoa products, Soya-based products, mineral water,
high protein foods etc. We cover an exhaustive database of an array of suppliers, manufacturers,
exporters and importers widely dealing in sectors like the -Food Industry, Dairy processing,
Indian beverage industry etc. We also cover sectors like dairy plants, canning, bottling plants,
packaging industries, process machinery etc.

The most promising sub-sectors includes -Soft-drink bottling, Confectionery manufacture,

Fishing, aquaculture, Grain-milling and grain-based products, Meat and poultry processing,
Alcoholic beverages, Milk processing, Tomato paste, Fast-food, Ready-to-eat breakfast cereals,
Food additives, flavors etc.

11
 Rationale of the study

3.1. Statement of the problem

Given the growth of other packaged food items, the packaged atta industry is estimated to grow
at the rate of merely 3 per cent. The slow growth of the above mentioned industry may be due to
several reasons. It is also surprising that the presence of ITC, Hindustan Lever Ltd and even the
global brand Pillsbury is not stimulating the growth of the industry. This is evident from the
advertising space in the television. There is hardly any advertisement of packaged atta during the
prime time of television targeting the Indian housewives through BalikaVadhu, Jhansi Ki Rani,
Ye RishtaKyaKehlataHai, etc.

The problem is related to the low sales of packaged atta in the light of the fact that it is inevitable
part of our life. Now the time when people are using everything in packaged form Sand believing
that it would be better than open food, nevertheless they are not giving as much response as they
should give to it.

The major market is of families where both husband and wife are working, office goers or those
families which dont have a flour mill in vicinity.

Most families still prefer going the traditional way and doubt the quality of packaged atta. The
still practice purchasing wheat from the market, cleaning it by hand, storing them and then taking
small quantities of wheat to neighborhood mill or chakki to get it ground between two stones to
convert it into flour.

12
Selling packaged flour is almost revolutionary in India, where most Indian housewives still buy
raw wheat in bulk, clean it with hand, store it in metal hampers and carry some to the
neighborhood mill or chakki where it is grinded between two stones. This above analysis makes
this study a useful and important study.

LITRATURE REVIEW

Hughlett, mike, star tribune (Minneapolis , MN),(2012)

May 09 general mils said Wednesday that it has acquired ready to- cook spice
and sauce mixes produced in India under the Paramapara brand .

Terms of the deal werent disclosed.

The paramapara products are produced in pune , India and are primarily marketed in
western India. They are also exported to countries such as the united states, Canada and
japan.

the acquisition of parampara food products strong portfolio of brands strengthens our
ability to help bring home cooked meals to the family table and positions general mills
India for continued growth Vijay sood , executive director of general mills India , said
in a news release .

General mills other Indian businesses include its Atta brand flour , betty Crocker dessert
mixes and nature valley granola bars .

Nath srinivas, nidhi, economic times, the ( India),(2011):-

July 29-from next year , Atta ,bread ,biscuits, snacks and everything made from Maida
and Sooji will become seriously more expensive . even after a bumper crop, there just
wont be enough wheat for us. ET helps you join the dots. The trigger for wheat inflation
that will hit each one of us is the food security act , which kick starts next year . the food
corporation of India (FCI) will need substantially more wheat to supply three out of
four India households, meet the new buffer stocking norms that stipulate larger
quantities , and also keep aside a strategic reserve for emergencies .

13
Unlike rice, wheat cultivation is limited to less than a dozen states . FCI already buys one
out of every two bags sold by Indian farmers. In Punjab and Haryana, it buys virtually
every kilo for sale. To meet is new obligations ,FCI will have to redouble purchase
across Uttar Pradesh, Rajasthan , Madhya Pradesh and Bihar .that leaves less wheat for
traders and food companies that also buy from the same areas. Traders purchase about
40 percent of the wheat sold in Uttar Pradesh .

This share will rapidly decline .

When a commodity is in short supply , a bidding war breaks out. Wheat prices will rise
across India. Anxious food companies will not just pay more than the FCIs minimum
support price but also compete against each other to secure wheat supply .

Vilakshan; the XIMB journal of management (2009):-

Manufactures of FMCG products rely on sales promotions in order to attract customers

and motivate them to buy their products. In doing so many marketers may be missing
out on crucial consumer related dimensions such as value consciousness (VC), Deal
proneness (DP) and price consciousness (PC) . Past studies in the area indicate that
these dimensions impact the manner in which consumers respond to sales promotion
offers . taking select FMCG Products (packaged Atta , tooth paste and detergents ) , two
promotion types (monetary and non-monetary ) and two store types ( supermarket and
kirana store ) the study makes an attempt to analyze whether the three dimension of
value consciousness, deal proneness and price consciousness are related and if so what
is their impact on store preferences , brand preferences and buying intentions, brand
and store preferences . Differences were observed among consumers on value

Consciousness and deal proneness but not on price consciousness. Demographic

variables and their association with the dimensions have been mixed and not very
significant implying that the dimension under study have a universality of
application . consumers differed on the three dimensions when compared by their
preferences for monetary and non-monetary promotions . it is suggested that similar
studies be carried out in different product categories to test the applicability of the
dimension under question .

14
 Objectives

The main objective of the study is:

To study the critical factor responsible for low sales of packaged atta

The secondary objectives of the study are:

To find out the per cent of households using the packaged atta in urban area

To find out factors that drive people to use the packaged atta

To analyze key decision maker in the household for buying/ not buying the packaged atta

15
 CHAPTER-4

Research Methodology

Research Methodology
16
Research methodology is a method of studying problems whose solutions are to be desired
partly or wholly from facts. These facts may be statements of opinions, historical facts, those
contained in records and reports, the results of tests, answers to questionnaires, experimental data
of any sort, and so forth.

- By M.S. Monore

Research is the systematic exploration of the region of the unknown to find satisfactory answers
to the questions: what, how and why?It may be diligent enquiry in a scientific manner for
improvement of an existing system or for development of a new one, or for improving a process.
Research has been defined by various authors in different ways. It always begins with the
question or a problem
Research is carried out for two purposes -
1. Discovery of new facts
2. Verification of old one
There are two types of methods
A. Primary data collection method
B. Secondary data collection method
C. Statistical tools
Primary data collection method:
In primary data collection, you collect the data yourself using methods such as interviews and
questionnaires. The key point here is that the data you collect is unique to you and your research
and, until you publish, no one else has access to it.

There are many methods of collecting primary data and the main methods include:

a) questionnaires

b) interviews

c) focus group interviews

Observation
B. Secondary data collection method:
17
 All methods of data collection can supply quantitative data (numbers, statistics or
financial) or qualitative data (usually words or text). Quantitative data may often be
presented in tabular or graphical form. Secondary data is data that has already been
collected by someone else for a different purpose to yours.

Thus, research is the systematic exploration of the region of the unknown to find satisfactory
answers to the questions: what, how and why? It may be diligent enquiry in a scientific manner
for improvement of an existing system or for development of a new one, or for improving a
process.

Thereby, the aim of research is to improve, develop and not merely control routine operations.

Characteristics of research
1) Directed towards the solution
2) Require systematic approach
3) Data collection and data analysis
4) Relevancy
5) Expertise
6) Unbiased
7) Control
8) Logical
9) Empirical

Every project report conducted scientifically has specified framework for controlling data
collection. This framework is called research design. Its function is to ensure that required data
are collected accurately and effectively
THE RESEARCH PROCESS
Model: 4.1: THE RESEARCH PROCESS

18
 Defining the
Defining the problem And so new problem
on

Formulating
conclusions and
preparing the
report
Planning a research design

Processing and
Planning a sample Gathering the data analyzing the
data

Model: 4.1: THE RESEARCH PROCESS

4.1 The Study

The study is conducted in Indore. The study covers different income group of people. It tells
factors why people are using it or not using it.

4.2 The Sample Design

19
The target respondents are the housewives, retailers and the sales men of shopping mal. The
questionnaire is developed after a pilot survey of some housewives and senior citizens.
Following is the data collection table from the targeted respondents:

Table 4.1: Respondents Profile

Low Middle High Income Total

Income Income
House wives 10 30 10 50
Working Women 10 5 5 20
Senior Citizens 10 5 5 20
Sellers* 4 4 2 10
Total 34 44 22 100

*Low income seller = Local Chakki Owners

Middle income seller = Mom and Pop Store Owners

High income seller = Sales men from shopping malls

In this study, I have taken total 100 respondents from various locations of Indore. Table 4.1
shows the profile of the respondents. The sample is designed in such a way that it is true
representative of the customers. There are mainly four types of respondents, i.e., house wives,
senior citizens, sellers and working wives. All these respondents come from various income
groups. For example, I have taken 10 senior citizens from low income families. This way I have
taken 34, 44 and 22 respondents from low income, middle income and low income families.

4.3 Tools for Data Collection

The data has been collected through schedules where the surveyor asked the questions in the
schedule and marked and noted the responses.

20
 Company Profile

Aashirvaad

At ITC Aashirvaad, extra care is taken to keep things as natural as possible. The way Mother
Nature intended for them to be. That is why you will see that a lot of traditional, sometimes even
cumbersome methods that the world has long left behind are adopted, so that you can have a
taste of the authentic. In our quest to provide you wholesome goodness, the finest of ingredients
are sourced, directly from the farmers through our e-choupals. ITCs e-choupal initiative, aims to

21
confer the power of expert knowledge on even the smallest individual farmer. Thus, it is
enhancing its competitiveness in the global market. A walk through our range our products might
well seem like a journey through the good old world.

.
Aashirvaad Atta was launched on 27th May 2002 and within a short span of 7 years has become
the number one in branded packaged atta across the country. Aashirvaad Atta is made from the
choicest grains - heavy on the palm, golden amber in color and hard in bite. It is carefully ground
using modern 'chakki - grinding' process for the perfect balance of color, taste and nutrition
which also ensures that Aashirvaad atta contains 0% Maida and is 100% Sampoorna Atta. The
dough made from Aashirvaad Atta absorbs more water; hence rotis remain soft longer. The
wheat for Aashirvaad Atta is sourced directly from farmers through ITC's e-choupals.
Aashirvaad Select 100% MP Sharbati atta comes from the plush, fertile soil of Madhya Pradesh,
tended by the right amounts of sunshine and rainfall. The land here truly sprouts gold. The gold
that we call sharbati. The sharbati wheat is sourced directly from farmers through ITCs e-
choupals and then blended using the traditional chakki-grinding method to give you that
superior, discerning taste that you well deserve.
Aashirvaad Atta with Multigrain: From the stable of Indias most trusted Atta brand comes a new
and improved variety Aashirvaad Atta with Multigrain. This all-new variant is designed to
provide nourishment for people of all ages and is an integrated mix of six different grains
wheat, soya, channa, oat, and maize phylum husk which gives a better and healthier option for
the consumers. Aashirvaad Atta with Multigrain is an excellent source of vitamins which is vital
in strengthening immunity and; extra protein content to improve body strength. The extra fiber
makes your food easier to digest; low content of saturated fat keeps your heart smiling all
through the day and above all, still retaining the same great taste!!

22
Whole Wheat Atta - 0% Maida and 100% Atta: Aashirvaad Whole Wheat Atta has 0% Maida and
100% atta. This means you serve soft, fluffy rotis and a whole lot of health and happiness.

Shakti Bhog

Established in the year 1970, we, "Shakti Bhog Foods Ltd.", are the most reputed name in the
field of food products. Our brand- Shakti Bhog is India's fastest selling wheat flour and has made
us a popular name in the global market. The distinctiveness of our products and further
broadening of product lines has established us as the most acknowledged manufacturer and
exporter of Wheat Flour, Basmati and Non-Basmati Rice, Pulses and Beans, Corn Flour, Maize
Flour, Atta, Mustard Oil, Pickles and Samoline (Suji). Our impeccable quality products, cost
effective production process, voluminous experience of the market and prompt delivery has
fetched us tremendous customer response in overseas markets like USA, New Zealand,
Australia, UAE, Qatar and host of other countries. The work culture of our organization is
focused on high performance, innovation, entrepreneurship and empowerment. Our products
have been well-appreciated by all our clients, which motivates us to elevate the standards of
excellence.

We are a leading producer in milled product segment in Indian processed food industry, products
like Packaged Atta (Whole Wheat Flour), Besan (Gram Flour), Samoline (Suji), Basmati Rice
and Dalia (Porridge) are part of our product line. We produce three kinds of Flour, two kinds of
Porridge and different variety of Basmati Rice. Absolute hygienically proven and tested quality
checks are undertaken at every level of the production process, in order to make sure that only
quality proven batches of products are dispatched in the market.

Pillsbury

23
We have a range of innovative brands all driving our mission of making consumers lives
healthier, easier and richer.

Our brands are relevant to a wide range of consumers. We offer households worldwide brands
such as Pillsbury, Green Giant and Betty Crocker. Active professionals enjoy our Nature Valley
products.

We have Haagen-Dazs for consumers of super-premium ice cream.

General Mills India also offers a range of customized products for the foodservice sector.
Pillsbury Chakki Fresh Atta flour provides consumers with a deliciously soft rotis, along with
the convenience of a packaged, branded product.

Pillsbury Chakki Fresh Atta was introduced in 1998 as a high-quality, nutritious alternative to the
age-old tradition of purchasing grain and having it ground at the local Chakki or flour mill.

Pillsbury has been recognized as a super brand in the branded atta category, and is one of the
leading players, with products distributed in more than 500 towns and 100,000 outlets
throughout India.

Pillsbury Chakki Fresh Atta is 100 percent whole wheat grain atta with fibre - which is important
for a healthy digestive system - natural ingredients for overall health and vitality, plus iron,
which acts as a carrier of oxygen in the body.

Pillsbury Atta with Multi-Grain Launched in 2008 in select cities, this is a first-to-market, unique
blend of seven grains (wheat, oats, soy, raagi, barley, channa dal and maize) that are specially
blended to provide all-around health benefits.

24
Silver Coin

Initially, company entered into the market with unit pack of 25 Kg, 50 Kg and 90 Kg to meet the
demands from bakeries, hotels, restaurants, functions etc. On creation of best market amongst the
bulk users, company went ahead to meet the demand of end users with consumer pack of 1 Kg to
10 Kg. Unit packaging has been designed in consideration of all types of users residing at metros
and remote areas in the country. This packaging system is being introduced into two separate
sections, in addition to the special unit packaging as per requirements of users with different
brand names.

25
 CHAPTER-5

Data Analysis and Results

5. Data Analysis and Results

5.1 Hypotheses

The previous researchers have concluded that there is total 3% population that uses packaged
atta. The previous research does not do the specific analysis for families with low, middle and
high incomes. The above mentioned hypothesis is tested for families with different income
groups.

(1) Usage of packaged atta in various income families

H0: P = 0.03

26
 Null Hypothesis is that only 3 percent families use the packaged Atta

H1: P > 0.03

Alternative Hypothesis is that more than 3 percent families use packaged Atta

Analysis for low income families - Low income families, in this study, means the families
having a sum total of family income up to Rs 10,000 per month. The responses of members from
low families are given in the table below:

Table 5.1: Use of Packaged Atta in Low Income Families

Response No. of Respondents

Yes 2
No 32
Total 34

Interpretation and Result -In order to find out the use of packaged atta in Low Income
Families, I asked 32 respondents if packaged atta is used in his/her family. Only 2 respondents (6
per cent) said yes. Remaining 32 respondents (94 per cent) said, packaged atta is not used in their
families. The details of the same are given in table 5.1 and are presented graphically in the graph
below:

27
 Use of Packaged Atta in Low Income Families

Yes No

6%

94%

Sample z critical z calculated Significanc Result

Size value value e level
34 1.64 1.03 0.05 H0 accepted

There is statistical evidence to accept that 3% families with low income use packaged atta.
Therefore we have to accept the null hypothesis which means there are 3% low income families
that use packaged atta. We cannot accept the alternative hypothesis that more than 3% low
income families use packaged atta.

Analysis for middle income families - Middle income families, in this study, means the families
having a sum total of family income between Rs 15,000 and Rs 40,000 per month. The responses
of members from middle income families are given in the table below:

Table 5.2: Use of Packaged Atta in Middle Income Families

Response No. of Respondents

Yes 6
No 38
Total 44

28
Interpretation and Result -In order to find out the use of packaged atta in middle Income
Families, I asked 44 respondents if packaged atta is used in his/her family. Only 6 respondents
(14 per cent) said yes. Remaining 38 respondents (86 per cent) said, packaged atta is not used in
their families. The details of the same are given in table 5.2 and are presented graphically in the
graph below:

Sample z critical z calculated Significanc Result

Size value value e level
44 1.64 4.09 0.05 H0 not accepted
There is no statistical evidence to accept that 3% families with middle income use packaged atta.
Therefore we have to accept the null hypothesis which means there are more than 3% middle
income families that use packaged atta. Analysis for high income families - High income
families, in this study, means the families having a sum total of family income more than Rs
40,000 per month. The responses of members from low families are given in the table below:

Table 5.3: Use of Packaged Atta in High Income Families

Response No. of Respondents

Yes 8
No 14
Total 22

Interpretation and Result -In order to find out the use of packaged atta in High Income
Families, I asked 22 respondents if packaged atta is used in his/her family. 8 respondents (36 per
cent) said yes. Remaining 14 respondents (64 per cent) said, packaged atta is not used in their
families. The details of the same are given in table 5.3 and are presented graphically in the graph
below:

29
 Use of Packaged Atta in High Income Families
Yes No

36%

64%

Sample t critical t calculated Significanc Result

Size value value e level
22 1.725 9.17 0.05 H0 not accepted
There is no statistical evidence to accept that 3% families with high income use packaged atta.
Therefore we have to accept the null hypothesis which means there are more than 3% high
income families that use packaged atta.

(2) Correlation between Working Ladies and Usage of Packaged Atta

H0: r = 0
There is no correlation between the number of families with working ladies and number of
families using the packaged atta
H1: r 0
There is no correlation between the number of families with working ladies and number of
families using the packaged atta
It sees that there is some relationship between the usage of packaged atta and working ladies.
This study hypothesizes that the usage of packaged atta will be more in the families where wives
work in offices or other places than home. The basis for this assumption is that working ladies
find less or no time to buy wheat and then go to mill it in the floor mill. Thus they would like to
avoid such troubles and would buy packaged atta instead. Unlike the working ladies, the house
ladies may have enough time to buy wheat, clean it, and then get it milled in the nearby atta
chakki.
30
Table 5.4: Relation between number of families with low income and number of families
using packaged atta
Locality No. of families with working No. of families where packaged atta is used
ladies
Vijaynagar 8 8
LIG 9 6
Sudama Nagar 2 1
Patnipura 4 2
Palasia 5 3
Gita Bhavan 6 6
Dewas Naka 2 3
Annapurna 2 3
Bhanvarkua 3 2
Rajbada 5 4

Interpretation and Result -In order to find out the correlation between the families using
packaged atta and families with working women I asked two question to each family from
various locations of Indore. In each of the location I selected 10 families. The total number of
locations is 10. For example, in Rajbada, there were 5 families with working ladies and 4
families used the packaged atta. These may or may not be from the same families which have
working ladies. This way, I asked these questions to 100 families. The details of the responses
are shown in table 5.4, and are presented graphically in the graph below:

31
Families with Working Ladies and Usage of Packaged Atta
9
8
7 f(x) = 0.72x + 0.87
6 R = 0.75
5
No. of Families Using Packaged Atta 4
3
2
1
0
1 2 3 4 5 6 7 8 9 10

No. of Families with Working Ladies

Sample Size r critical value r calculated value Significance Result

level
10 0.632 0.86 0.05 H0 not accepted

We conclude that there is significant correlation between the number of families with working
ladies and number of families using packaged atta.
(3) Correlation between number of low income families and usage of packaged atta

H0: r = 0

Null Hypothesis is that there is no correlation between income of the household and
usage of packaged atta

H1: P 0

Alternative Hypothesis is that there is significant correlation between income of the

household and usage of packaged atta

32
 Table 5.5: Relation between number of families with low income and number of
families using packaged atta

Number of Families with Number of families using

Location low Income packaged atta
Vijaynagar 4 8
LIG 5 5
Sudama Nagar 3 7
Patnipura 8 2
Palasia 4 6
Gita Bhavan 7 4
Dewas Naka 6 4
Annapurna 2 9
Bhanvarkua 7 2
Rajbada 6 5

Interpretation and Result -In order to find out the correlation between the families using
packaged atta and low income families, I asked two questions to each family from various
locations of Indore. In each of the location I selected 10 families. The total number of locations
is 10. For example, in Sudama Nagar, there were 3 low income families and 7 families used the
packaged atta. These may or may not be from the same low income families. This way, I asked
these questions to 100 families. The details of the responses are shown in table 5.5, and are
presented graphically in the graph below:

33
 Low Income Families and Usage of Packaged Atta
10
9
f(x) = - 1.14x + 11.14
8
R = 0.88
7
6
5
No. of families using packaged atta
4
3
2
1
0
1 2 3 4 5 6 7 8 9

No. of families with low income

Sample Size r critical value r calculated value Significance Result

level
10 1. 632 -0.94 0.05 H0 not accepted
Interpretation and Result -We conclude that there is significant negative correlation between
the number of families with working ladies and number of families using packaged atta. The
analysis also suggests that the relationship between the two variables in negative.
Table 5.6: Rating of the critical factors for demand of Packaged Atta
Factor/Rating R1 R2 R3 R4 Total
Better Quality Perception 26 34 28 12 100
Availability in vicinity 40 33 22 5 100
Convenient 54 32 10 4 100
Advertised Nutritious Values 15 29 36 20 100

In order to find out the critical factors that lead to high demand of packaged atta, I asked them to
rate the factors on their importance wise. For example, 54 respondents said that convenience is
the most important factor responsible for them to buy the packaged atta. It can be said that
34
convenience and availability in the vicinity are the drivers of high demand of packaged atta. The
details of the responses are shown in table 5.6, and are presented graphically in the graph below:

Rating of the Critical Factors for Demand of Packaged Atta

60

50 Better Quality Perception

Availibility in vicinity
40
Convenient
Advertised Nutritious Values
30

20

10

0
R1 R2 R3 R4

Table 5.7: Rating of the Factors of Responsible for the Low Sales of Packaged Atta

Factor/Rating R1 R2 R3 R4 Total
Maida Taste 41 26 20 13 100
Unreliable 57 33 7 3 100
High Price 23 39 22 16 100

Time Availability 34 25 29 12 100

Interpretation and Result -In order to find out the critical factors that cause low demand of
packaged atta, I asked them to rate the factors on their importance wise. For example,
23respondents said that convenience is the most important factor responsible for them not to buy
the packaged atta. It can be said that maida taste and unreliability y are the factors responsible for
low sales of packaged atta. The details of the responses are shown in table 5.7, and are presented
graphically in the graph below:

35
 Rating of the Factors for Low Sales of Atta
60

50
Maida Taste
40 Unreliable
High Price
30
Time Availibility
20

10

0
R1 R2 R3 R4

Table 5.8: Decision Maker about the brand of packaged atta in family
Housewife 50
Parents 20
Husband 18
Children 2
Total 90

Table 5.8 details the decision makers about the usage of packaged atta in the family. Children
decide the brand of packaged atta only in 2 per cent families while in 56 per cent of the families
housewives decide the brand of packaged atta. Parents decide in 22 per cent of the families
whereas husbands decide in 20 percent of the families. The following graph gives the details of
the decision makers:

36
 Decision Makers about the Usage of Packaged Atta

Children; 2%
Parents; 22%Husband; 20%

Housewife; 56%

Who cooks food in the family

One of the important factors in the usage of packaged atta is recommendation made by the
person cooking food in home. Therefore it was important to find out who cooks food in homes.
In rural India, almost in every home the food is cooked by family members. Unlike rural India, in
urban areas both husband and wife work which results into the employment of maids in the
cooking of foods. Since there was such study available about the percentage of homes where
food is cooked by maids, I have hypothesized that maids cook food in 10% of the homes. Since
there is diversity in the cooking habits across income groups, hypothesis has been tested for low
income families, middle income families and high income families.

37
Low Income Families

Respondents from Low Income Families

senior Citizen; 33%Housewife; 33%

Working Woman; 33%

H0: Maids cook food in 10% of the families with low income
H1: Maids cook food in less than 10% of the families with low income
Table 5.9: Who cooks food in low income family?
Family Member 28
Maid 2
Total 30

In 97 per cent of the low income families, the food is cooked by family members while in only 3
per cent of the families maid cooks food. Table 5.9 details the same and the responses are shown
in the following graph:

38
 Who Cooks Food in Low Income Families

Maid; 7%

Family Members; 93%

Sample Size t table t calculated Significance level Result

value value
30 1.699 -0.602 0.05 H0 not accepted

Interpretation and Result -It can be concluded that in less than 10 per cent families (low
income) the food is cooked by maids.
This conclusion is important because the decision about the packaged atta is likely to be made by
the person cooking food. Since in most of the families with low income food is cooked by family

39
members, housewife in particular, the decision about the usage of the packaged atta is made by
the housewife.
Middle Income Families

Respondents from Middle Class Families

Parants; 13%

Working Woman; 13%

Housewife; 75%

Table 5.10: Who cooks food in middle income families?

Family Member 30
Maid 10
Total 40
Interpretation and Result -In 75 per cent of the middle income families, the food is cooked by
family members while in only 25 per cent of the families maid cooks food. Table 5.10 details the
same and the responses are shown in the following graph:

40
 Who cooks food in Middle Income Families

Maid; 25%

Family Members; 75%

H0: Maids cook food in 10% of the families in urban India

H1: Maids cook food in more than 10% of the families in urban India

Sample t table value t calculated Significanc Result

Size value e level
40 1.684 65.22 0.05 H0 not accepted

Interpretation and Result -It can be concluded that in more than 10 per cent families (middle
income) the food is cooked by maids.
High Income Families
Table 5.11: Who cooks food in high income family?
Family Member 10
Maid 10
Total 20
Interpretation and Result -In 50 per cent of the middle income families, the food is cooked by
family members while in 50 per cent of the families maid cooks food. Table 5.11 details the
same and the responses are shown in the following graph:

41
 Who cooks food in High Income Families

Maid; 50%
Family Members; 50%

H0: Maids cook food in 25% of the families in urban India

H1: Maids cook food in more than 25% of the families in urban India
Sample t table value t calculated Significanc Result
Size value e level
20 1.729 2.58 0.05 H0 not accepted

Interpretation and Result -It can be concluded that in more than 25 per cent families (high
income) the food is cooked by maids.

42
 CHAPTER-7

Suggestions and Conclusion

3. Suggestions and Conclusion

Per capita income in India is increasing. Rural population is also becoming quality conscious.
People are using luxurious products. The cold beverages have made their place in consumers.
Advertisement is driving sales of many products. Business houses are eyeing at the retail
sector as the business of future. People in urban India are getting used to buy vegetables from
organized retail shops. There is cut throat competition among the firms in every walk of
business.

But, India has less than 3 per cent of its population which uses packaged atta. There are three
major players in packaged atta segment. The above two sentences form the basis of the study
in the light of the additional fact that atta is the main ingredient of food in almost every state

43
 in India. The study aims at finding out the critical factors responsible for low sales of
packaged atta.

This study is based on the responses of 100 families of different locations in Indore. Data
have been collected by researcher herself. The results show that the quality of packaged atta
is less reliable than the atta grinded in the local chakki. They do not like the taste of atta
because its maida-type fine and lacks fiber. The study finds a significant positive correlation
between the number of families with working ladies and the number of families using
packaged atta. On the other hand, there is significant negative correlation between the number
of families with low income and the number of families using packaged atta. Packaged atta is
used because families report it be convenient than to buy wheat, clean it and then grind it in
vicinity chakki. The availability of packaged atta in vicinity grocery and other stores is
second major reason for people to use it.

The firms producing and selling packaged atta may be benefitted by the findings and
suggestions of the study. It is suggested for the firms to design advertisement for establishing
the reliability of process of manufacturing of packaged atta. Whole wheat atta with little low
price may increase the demand of packaged atta exponentially.

Limitations of the Study

The research project aims at collecting data from urban area. Thus, exclusion of rural area
where approximately 65 per cent of people live would be major limitation.

44
 The sample size of 100 may be limited to conclude the findings for 30 crore people living
in urban area.

It covers only marketing aspect of low sales.

The number of question in questionnaire may not be adequate to know the reason for low
sales.

45
 CHAPTER-8

References

Bibliography

1. Kotler Philip, (2008.)Marketing Management Text and Cases, Pearson Education

a south Asian perspective, 13th Edition
2. Brian Mulian (1999) The Psychology of Consumer Behavior Craig Johnson, MPH
Publication New York
3. Robbins, Stephen P. (2008) Organizational Behavior, and New Delhi: Prentice Hall of India.
4. Johnson (2010), Sales Management, Mc Graw Hill, 7th Edition.
5. Mary Robert(1999), Direct Marketing Management, London: Prentice
Hall, 2nd Ed.

46
6. Jerry C. Olson, Thomas J. Reynolds(2001), Understanding Consumer
Decision Making:The Means-End Approach to Marketing
andAdvertising Strategy, Oxford university Press, Oxford
7. Ali, Jabir, SanjeevKapoor and JanakiramanMoorthy, Buying Behaviour of Consumers forFood
Products in an Emerging Economy, British Food Journal, Vol. 112 No. 2 (2010): 109-124

Webliography

1. http://timesofindia.indiatimes.com/articleshow/1241069178.cms

2. http://timesofindia.indiatimes.com/city/delhi/-No-mechanism-to-keep-retail-prices-in-
check/articleshow/5717368.cms

3. http://www.indianfoodindustry.net/

4. http://www.indianexpress.com/news/who-are-the-middle-class-in-india/438429/

5. http://www.prlog.org/10955354-new-market-study-published-ethical-packaged-food-does-it-
really-have-future.html

47
6. http://chestofbooks.com/food/household/Foods-And-Household-Management/Ready-Cooked-
Foods.html

7. http://ecophilo.blogspot.com/2005/04/ready-to-eat-or-ready-to-cook.html

Appendices

48
Appendices
A .Questionnaire

Personal Information

1. Who cooks food in your home:

a. Cook

b. Any other family member

2. Do you use packaged atta in your Home?

a. Yes

b. No

3. Total Number of Members in the Family

49
 a. Two

b. 2 4

c. 4 6

d. More than 6

4. Profession

a. House maker

b. Working

5. Total Family Income per month

a. Up to Rs 10000

b. Rs 10000 Rs 40000

c. More than Rs 40000

Information relating to consumption pattern

1. How often do you use packaged atta?

1. Daily

2. Occasionally

3. Never

4. When out of stock

2. Why do you not use packaged atta?

a. Unreliability

50
 b. Price

c. Time Availability

d. Taste ( Maida )

3. Are you satisfied with the quality of packaged atta?

a. Excellent

b. Good

c. Average

d. poor

4. Are you satisfied with the price?

a. Yes

b. No

5. Do you feel Maida test in packaged atta?

a. Yes

b. No

6. How many brands of packaged atta do you know? Please name them

a. ..

b. .

c. ..

d. ..

51
 e. ..

7. Have you seen the advertisement of packaged atta in television, if yes please name
the brand

..

8. Who makes the decision about the brand of the packaged atta in your family?

a. Self

b. Husband

c. Mother In Law/ Parents/ Father in Law

d. Children

9. Which type of improvement would you like to see in the atta you are using currently

..

10. How satisfied are you with the packaged atta?

a. Very Satisfied

b. Just Satisfied

c. Dissatisfied

d. Very Dissatisfied

11. Rank the reason for using the packaged atta according to your importance ( Rank

1 means most Important

Factor Rank
Quality

52
 Better Quality Perception
Availability in vicinity
Convenient
Advertised Nutritious Values

Respondents list
Hig Lo
h w
Incom Use Sale Sale
e of s s
Responde ProfeSCi ClaS Pack Locatio Ran Ran Who
nt on C Atta n k1 k1 cooks
1 HW L N VN BQ MT FM
2 HW L N LG AV UR FM
3 HW L N SN CT HP FM
A
4 HW L N PT N TA FM
5 HW L N PL UR FM
6 HW L N GB UR FM
7 HW L N DN UR FM
8 HW L N AN UR FM
9 HW L N BK FM
10 HW L Y RB TA FM
11 HW M N VN UR
12 HW M N LG CT
13 HW M N SN
14 HW M N PT CT HP
15 HW M N PL UR
16 HW M N GB UR
17 HW M N DN CT MT
18 HW M N AN CT UR
19 HW M N BK CT UR
20 HW M N RB CT UR
21 HW M N VN CT UR
22 HW M N LG CT UR
23 HW M N SN UR
24 HW M N PT UR
25 HW M N PL CT UR
26 HW M N GB CT UR
27 HW M N DN CT TA
28 HW M N AN CT TA
29 HW M N BK CT TA
30 HW M N RB CT MT
31 HW M N VN UR
32 HW M N LG CT HP
33 HW M N SN CT TA
34 HW M N PT MT
35 HW M N PL UR

53
36 HW M N GB UR
37 HW M N DN CT UR
38 HW M Y AN UR
39 HW M Y BK MT
40 HW M Y RB CT UR
41 HW H N VN HP
42 HW H N LG TA
43 HW H N SN UR
44 HW H N PT UR
45 HW H N PL CT UR
46 HW H N GB MT
47 HW H N DN UR
48 HW H Y AN HP
49 HW H Y BK CT TA
50 HW H Y RB UR
51 WW L N VN HP
52 WW L N LG CT HP MD
53 WW L N SN HP FM
54 WW L N PT UR FM
55 WW L N PL CT UR FM
56 WW L N GB CT HP FM
57 WW L N DN CT UR FM
58 WW L N AN CT UR FM
59 WW L N BK CT UR MD
60 WW L N RB UR FM
61 WW M N VN UR FM
62 WW M N LG UR FM
63 WW M N SN UR FM
64 WW M Y PT CT UR FM
65 WW M Y PL CT MT FM
66 WW H N GB CT u FM
67 WW H N DN CT UR FM
68 WW H N AN CT UR FM
69 WW H Y BK CT UR FM
70 WW H Y RB CT HP
71 SC L Y VN HP FM
72 SC L N LG CT UR FM
73 SC L N SN CT UR FM
74 SC L N PT CT UR FM
75 SC L N PL CT UR FM
76 SC L N GB UR FM
77 SC L N DN CT UR FM
78 SC L N AN CT UR FM
79 SC L N BK CT MT FM
80 SC L N RB CT MT FM
81 SC M N VN CT MT
82 SC M N LG CT MT
83 SC M N SN CT MT
84 SC M N PT CT MT
85 SC M Y PL CT MT

54
 86 SC H Y GB CT HP
87 SC H Y DN HP MD
88 SC H Y AN HP FM
89 SC H N BK CT HP FM
90 SC H N RB UR FM
91 S L N LG UR FM
92 S L N SN CT UR FM
93 S L N PT CT UR FM
94 S L N PL CT UR FM
95 S M N GB CT UR
96 S M N DN CT MT
97 S M N AN UR
98 S M N BK MT
99 S H N RB UR
100 S H N VN UR
HW 50 34 16 10 54 16 43
WW 20 44 84 10 57
SC 20 22 10
S 10 100 10
Total 100 10
10
10
10
10
10

55
Percentage Analysis

Table 5.1: Use of Packaged Atta in Low Income

Families

Response No. of Respondents %

Yes 2 6
No 32 94
Total 34 100

Table 5.2: Use of Packaged Atta in Middle Income

Families
Response No. of Respondents %
Yes 6 14
No 38 86
Total 44 100

Table 5.3: Use of Packaged Atta in High Income

Families
Response No. of Respondents %
Yes 8 36
No 14 64
Total 22 100

Table5.8: Dicision making about brand %

Housewife 50 56
Parents 20 22
Husband 18 20
Children 2 2
Total 90 100

Table 5.9: Who cooks food in low income family?

Family Member 28 93
Maid 2 7

56
Total 30 100

Table 5.10: Who cooks food in middle income families?

Family Member 30 75
Maid 10 25
Total 40 100

Table 5.11: Who cooks food in high income family?

Family Member 10 50
Maid 10 50
Total 20 100

57