A

Project Report on

CONSUMER SATISFACTION AND RETENTION

FOR

SRESTA NATURAL BIOPRODUCTS

SUBMITTED TO

BALAJI INSTITUTE OF INTERNATIONAL BUSINESS (BIIB),

PUNE

BY

GAURAV GUPTA

SRI BALAJI SOCIETY’S

BALAJI INSTITUTE OF INTERNATIONAL BUSINESS (BIIB)
S No – 5/2-7, TATHAWADE, WAKAD, PUNE – 411033

1
CONSUMER SATISFACTION AND RETENTION

FOR

SRESTA NATURAL BIOPRODUCTS

Summer Project Report

Submitted By

Gaurav Gupta

IB1513125

in partial fulfillment of the requirement for the award of the Post

Graduate Diploma in Management

PGDM – IB and Marketing

IN

Balaji Institute of International Business (BIIB)

S. No 55/2-7, Tathawade, Wakad, Pune - 411033

2
3
 CERTIFICATE FROM INTERNAL GUIDE

This is to certify that Mr GAURAV GUPTA, student of Two Year Full Time Post
Graduate Programme in Management – PGDM (IB) in Balaji Institute of International
Business (BIIB), Pune – 411033 has completed Summer Project Report titled “Consumer
Satisfaction and Retention” from 02/05/2016 to 30/06/2016.

He has completed the Project work to my satisfaction.

Signature of Internal Mentor

(Prof. Nitesh Behare)

4
 STUDENT’S DECLARATION

I, GAURAV GUPTA, a student of Balaji Institute of International Business, Sri Balaji

Society, Pune, hereby declare to the fullest of my knowledge and belief that the Project
presented is solely done by me for understanding the Consumer Satisfaction for Sresta
Organic Bioproducts pvt ltd as a partial fulfillment of Post Graduate Diploma In
Management - (PGDM).

Place: Pune Gaurav Gupta

Date: (IB-1513125)

PGDM-IB 2015-17

BIIB, PUNE

5
 ACKNOWLEDGEMENT

I would like to express my sincere gratitude to Ms. Amruta Patil

(Business Development Manager) for giving me the opportunity to work
with Sresta Organic Bioproducts and for her extensive guidance.

First of all, I would like to thank my Family, they have constantly supported
me in my endeavor.

Then I would like to express my sincere thanks to Prof. Col. A.

Balasubramanian, Dean, BIIB and Dr. Suresh Chandra Padhy, Director,
BIIB, for guidance and support in the project without whom, this project
would not have been complete.

Finally, I would like to express my sincere thanks to all those who directly
and indirectly have helped to me and made my project a worthwhile and
memorable experience.

GAURAV GUPTA

IB 1513125

6
 TABLE OF CONTENTS

S.No. Title Page No.

A Executive Summary 9

1 Introduction 10-13

2 Literature Review 14-17

3 Company Profile 18-26

4 Objectives of the Study 27-29

5 Research Methodology 30-32

Data Analysis,
6 Interpretation and 33-48
Findings

7 Recommendations 49-50

8 Bibliography and Annexure 51-56

7
 LIST OF TABLE

S.no Table no Page no

1 Table no: 2.1 17
2 Table no: 6.1 34
3 Table no: 6.2 35
4 Table no: 6.3 36
5 Table no: 6.4 37
6 Table no: 6.5 38
7 Table no: 6.6 39
8 Table no: 6.7 40
9 Table no: 6.8 41
10 Table no: 6.9 42
11 Table no: 6.10 43
12 Table no: 6.11 45
13 Table no: 6.12 46

LIST OF GRAPHS

S.no Graph no Page no

1 Graph no: 6.1 34
2 Graph no: 6.2 35
3 Graph no: 6.3 36
4 Graph no: 6.4 37
5 Graph no: 6.5 38
6 Graph no: 6.6 39
7 Graph no: 6.7 40
8 Graph no: 6.8 41
9 Graph no: 6.9 42
10 Graph no: 6.10 43
11 Graph no: 6.11 45
12 Graph no: 6.12 46

8
 EXECUTIVE SUMMARY

It was a great opportunity to do this project for Sresta Organic Bioproducts, Pune. A
market research on customer satisfaction and retention was done for the company’s brand
24 Mantra for two months. The objective of the study was to understand the factors
influencing the retention of existing customers and to understand consumer’s perception
towards organic products and their buying behavior. Keeping the above objective in
mind, every effort was made to reach to the factual position at the ground level and was
tried hard to figure out the constraints.

It was found that the key aspects for consumer to go for organic products are:

 Good Quality food

 Product availability
 Affordable prices

The research draws attention on the fact that the growth rate of organic industry is on the
rise, it is about 25% per annum, and this means people are getting aware about the
benefits of organic grown food.

Sresta organic has come up to be recognized as one of the most prominent player in
organic industry yet people are needed to be aware of the brand. So it recommended that:

 More tie-ups with multi-chain retail outlets should be made to make the products
easily available.
 Advertisement at national level can increase brand popularity and it will help in
creating an image in the society, so that people will recognize sresta as a reliable
and trusted organic company.
 Next gen marketing strategies like digital marketing through various social media
websites will give a platform to the organization to address mass groups.

9
10
1.1 Why organic food?

 To start with, they exclude all the foreign materials added to traditional foods
which tend to be toxic. If one practices eating organically produced foods, one is
guaranteed of a better and healthier diet to sustain the human body.

 Consumption also reduces the risk at which one can get cancer which is very
important.

 These foods are 90% safer in the sense that human waste or animal excretions are
not being incorporated in the production. In traditional foods, it is believed that
the water supplies have a percentage of human waste and animal excretions
present.

 Organic foods support the environmentally friendly cause in that it doesn’t allow
the secretion of harmful materials into the atmosphere and ultimately the
environment. Pesticides and herbicides used in traditionally produced foods are
harmful to the environment especially to aquatic organisms. Therefore organic
foods encourage the cause to make the environment a safer place to live in and
help in improving the environment.

 These foods don’t result in the emission of greenhouse gases which affect and
unstabilize the atmospheric conditions.

1.2 Organic food in the future

Organic foods which guarantee nutritional requirements in a person‘s diet are becoming
increasingly popular in many parts of the world. With more and more people being
concerned about what they take in to check their health, organic foods have increasingly
become the number one option amongst many shoppers. It is now being found in major

11
supermarkets and these trends tell us that this food is here to stay. Many have their doubts
about it.

However one must realize that when traditional foods are compared to organic foods, the
facts favor organic foods more. First of all, organic foods are produced naturally without
anything foreign included but traditional foods are constantly sprayed with pesticides,
herbicides, hormones and many other chemicals. Imagine eating foodstuffs which have a
certain percentage of foreign materials, many of which tend to be dangerously poisonous.
Even with that aside, these things can have harmful effects on the environment and the
human body as well.

With this settled, any individual would clearly go in for organic foods which guarantees
nutritional intake and no foreign materials With this agreed on, one may wonder how this
will affect the future but it does. A person who takes in organically produced foods and
knows of its benefits will feed his/her children on it. If this family grows on organic food,
the trend will not stay there but will be transferred from family to family and generation
to generation into the future. Long way to showing that organic foods will increasingly
become popular in the future.

1.3 Organic food Consumption in India is on the Rise

Some people believe that organic food is only a “concept” popular in the developed
countries. They think that when it comes to organic food, India only exports organic food
and very little is consumed. However, this is not true. Though 50% of the organic food
production in India is targeted towards exports, there are many who look towards organic
food for domestic consumption. The increase in organic food consumption in India is
evident from the fact that many organic food stores are spurring up in India.

However, the Indian organic food consumer needs education. There are many consumers
who are unaware of the difference between natural and organic food. Many people
purchase products labeled as Natural thinking that they are Organic. Further, consumers

12
are not aware of the certification system. Since certification is not compulsory for
domestic retail in India, many fake organic products are available in the market.

1.4 Values and Behaviour of Organic Consumers

An organic consumer has more positive beliefs concerning organic products. For
example, this product tastes better, is more natural, is healthier-they believe that more
than non-organic consumers. They believe that the people who are important to them,
people who are close to them, also by organic products they believe that it is a good thing
that they buy organic products. The other aspect of what the organic consumer think, as
compared to non-organic consumers, is their moral norms indicate they are doing a very
good thing for the environment, the right thing for society. This is something that
differences them from non- organic consumers. Non-organic purchases do not associate
those beliefs to buy organic products.

Consumer’s values to make a choice for organic food can be seen in two terms-use
values, such as utility from taste, health and freshness, i.e., private good attributes which
can only be enjoyed by actually consuming the product. The other non-use values are
public good values related to improved environment and animal welfare. The majority of
all consumers acknowledges and value organic goods for their non-use values
(environmental or animal welfare attributes), as well as for their use values (health, taste
or freshness attributes). The group of consumers having use values only is negligible. In
the same way that most people agree exercise is important, they also agree that a
sustainable, clean environment is important.

We can change non-organic consumer’s minds to make them believe that organic
products are better in different ways-for the taste, health or the environment and
demonstrate that people who are important to them, whether it’s people who are related
or not, such as celebrities, if they buy and consume organic product, then we might be
able to move these consumers into the organic market.

13
14
According to “India Organic Food Market Forecast & Opportunities, 2017”, Indian
organic food market is anticipated to grow at a significant CAGR of around 19% during
2012-2017. In India, majority of the demand for organic foods is originating from Tier I
cities such as Mumbai, Delhi, Chennai, Bangalore, Gurgaon and Pune. Companies are
witnessing increase in sales as a result of increasing demand from metro cities and the
entry of several new players in the organic food market offering an online channel for
purchase. The major players in Indian organic food market are Sresta Organic
Bioproducts, Conscious Foods, Eco Farms, Organic India, Navdanya and Morarka
Organic Foods. Organic food usually costs up to 20% to 30% more than conventional
food items which is one of the major challenges in Indian market as majority of the
consumers are quite price sensitive. However, at the same time increasing health
consciousness and increasing disposable income among Indians is incessantly increasing
the demand for organic food.

As per the available statistics, India’s rank in terms of World’s Organic Agricultural land
was 15 as per 2013 data (Source FIBL & IFOAM Year Book 2015). The total area under
organic certification is 5.71million Hectare (2015-16). This includes 26% cultivable area
with 1.49 million Hectare and rest 74% (4.22 million Hectare) forest and wild area for
collection of minor forest produces.

The Government of India has implemented the National Programme for Organic
Production (NPOP). The national programme involves the accreditation programme for
Certification Bodies, standards for organic production, promotion of organic farming etc.
The NPOP standards for production and accreditation system have been recognized by
European Commission and Switzerland for unprocessed plant products as equivalent to
their country standards. Similarly, USDA has recognized NPOP conformity assessment
procedures of accreditation as equivalent to that of US. With these recognitions, Indian
organic products duly certified by the accredited certification bodies of India are accepted
by the importing countries.

15
2.1 Production

India produced around 1.35 million MT (2015-16) of certified organic products which
includes all varieties of food products namely Sugarcane, Oil Seeds, Cereals & Millets,
Cotton, Pulses, Medicinal Plants, Tea, Fruits, Spices, Dry Fruits, Vegetables, Coffee etc.
The production is not limited to the edible sector but also produces organic cotton fiber,
functional food products etc.

Among all the states, Madhya Pradesh has covered largest area under organic
certification followed by Himachal Pradesh and Rajasthan.

2.2 Exports

The total volume of export during 2015-16 was 263687 MT. The organic food export
realization was around 298 million USD. Organic products are exported to European
Union, US, Canada, Switzerland, Korea, Australia, New Zealand, South East Asian
countries, Middle East, South Africa etc.

Oil seeds (50%) lead among the products exported followed by Processed food products
(25%), Cereals & Millets (17%), Tea (2%), Pulses (2%), Spices (1%), Dry fruits (1%),
and others.

2.3 Growth in the Organic food industry

A study projected that the domestic organic food market would touch the $1.36 billion
mark by 2020.

In 2014, the size of the organic food market, which is highly unorganized, was $0.36
billion, and organic pulses and foodgrains took the lion's share of the market, said the
study prepared by industry body Assocham and TechSci Research.

16
"The market is growing at 25-30 per cent at present. There is more potential to grow. The
government is spending crores of rupees on organic farming. Despite this, not many
people are aware of organic farming," said Minister of State for Agriculture Mohanbhai
Kalyanbhai Kundariya.

"India is capable of growing all kinds of organic foods. Farmers should be educated to
boost organic cultivation... Organic farming not only protects land and water resources,
but also improves farm income," he added.

According to the study, India's organic food market has potential to grow more than 25
per cent annually to touch $1.36 billion by 2020, provided there is more awareness about
these products and the government incentivises region-specific organic farming to ensure
consistent growth in future.

Emphasising on the need to increase awareness about certified organic food products, the
study said, "The level of awareness about organic food products in India is extremely low
and is limited to consumers in metro cities."

As per the government data, organic farming is practised in 12 states in about 4.72
million hectares. In 2013-14, organic food production was 1.24 million tonnes.

2.4 Drivers and Challenges

DRIVERS
1) Huge export markets.
2) Organized retail enhancing distribution
system.
3) Government benefits.
4) Increasing health consciousness among
consumers.
CHALLENGES
1) High prices of organic food.
2) Lack of integrated supply chain and
difficulties for farmers.
3) Certification barriers.

Table no. 2.1

17
18
3.1 About the Company

In the backdrop of excessive and harmful usage of pesticides began the story of Sresta. In
1992, when founder, Raj Seelam was working in an agricultural products company he
observed the alarming use and spread of chemical usage on farms, and the deep impact it
had on rural indebtedness. Investment in pesticides and synthetic fertilizers meant
farmers had to borrow money, which in turn was affecting the very sustainability of the
farmer’s life and standard of living. This sowed the seeds for Sresta. With a group of
inspired colleagues, they set out on a lifelong journey of passion and commitment. Sresta
named the products 24 Mantra.

Delving into the ancient Upanishads of India and sourcing from the Rig Veda, drew upon
the primary elements of nature. Tvam Bhumir Apo Analo Anilo Nabha – You alone are
Earth, Water, Fire, Air & Ether is the blend of all basic elements that compose
wholesome food.

Sresta took small steps starting 2004. With the focus on creating means of sustainability
for the farmers, set about addressing two key areas- farmers and the products. For the
farmers efforts addressed issues of creating communities for farmers who are committed
to the cause of organic farming, ensuring continuing means of livelihood and building
mutually beneficial relationships with the farmers. For products sresta adopted a
unique farm to fork approach to ensure farmers produce 100% Organic products and the
same was brought to customers.

According to the company's Chief Executive Officer N. Balasubramanian, ‘24 Mantra’

today is India’s leading organic food brand accounting for 65 to 70 per cent of the total
organic food sales. At present, the company is working with 25,000 farmers in an extent
of 1,50,000 acres spread over 15 States. It also has 15 processing facilities. In the next
five years the company’s target is to sell its products through 1,00,000 retail outlets
catering to the needs of a million people.

19
3.2 Approach

Sresta has a unique farming approach. One which ensures alignment with processes and
allows for round the year supervision. The farming is currently organized into more than
40 projects.

Each project is spread around in 15-20 kms & covering few 100 to few 1000 acres.
Typically for every 150 – 200 farmers Sresta have a trained field associate. Procurement
is done in the Procurement center at the project site itself and farmers are contacted
directly without any middlemen.

3.3 5 Level Guarantee Model

• Social control
Level 1 • Farmers are bonded into small organic group

• Regular field visit

Level 2 • Field officers visit every farm 2-3 times in a month

• Internal inspection
Level 3 • Randomly selected team conduct a well laid out inspection

• Certified inspection
Level 4 • Certification agencies inspect the farm in every crop season

• Pesticide Residue Check

• Before the crops is procured in harvesting season, pesticide residue
Level 5 check is done to ensure the products are pure and have no pesticide

20
3.4 Sresta Organic Products

The Hyderabad-based integrated organic food company currently sells its products
through 11,000 retail stores across 135 cities in the country and over 800 Indian grocery
stores in the US. Sresta’s products are also retailed in Canada, Europe, West Asia and
Mauritius. The company forayed into the organic food market in 2004 with just six stores
of its own — one each in Hyderabad and China and two each in Pune and Bangalore.

Sresta, which mainly operates through a shop-in-shop business model, has tied up with
major retailers in the country including Spencer's, Future Group, Spar, Food World,
Heritage and Godrej Nature's Basket. It has a single retail store in Hyderabad under the
brand name 24 Letter Mantra where it also sells bakery items.

Thereafter, the marketing of the company’s ‘24 Mantra’ brand of products has been
smooth and steady. The 200-odd ‘24 Mantra’ products, ranging from rice, dals, flours,
vegetables, fruits and spices to juices, cookies, teas and personal care products, now
reach 2,50,000 to 3,00,000 households in the country.

The company recently entered into two new categories -- Ready to Drink and Ready to
Cook products. Five variants of the Ready to Drink -- orange, mango, berry, apple and
lemon green tea flavours -- and four variants of Ready to Cook breakfast options -- millet
dosa mix, ragi idli mix, gojji avalakki and kanda poha -- have been launched.

The market for Ready to Eat/Cook foods (excluding the noodles category) is estimated at
Rs.600 crore, for RTD it is over Rs.1,000 crore.

21
3.5 Some Products are:

22
3.6 Certification

Farming Projects: All the farming projects are under Organic Certification for Euro
2092/91 standards, US NOP and Indian NPOP organic standards. Most of the projects are
certified by Control Union International, ONECERT.

Products and Processing facilities and warehouses: The products and processing units
are also certified for Regulation EC 834/2007, USDA NOP and Indian NPOP.

Food Safety & Quality: Sresta processing units have some of the following food safety
and other certifications: ISO 9001, ISO 22000, HACCP,GMP (Good manufacturing
facilities), GHP (Good Hygiene Practices), FSSAI ( Food Safety and Standards Authority
of India ) BRC (British Retail Consortium), Kosher.

Sresta is registered with FSSAI (Food Safety and Standards Authority of India) US FDA
(U.S. Food and Drug Administration).

23
3.7 SWOT Analysis

Strength

 Sresta organic has a deep product assortment.

 Sresta is known for High quality organic products.

 Attractive packaging.

 Sresta organic is USDA and ISO certified.

 The company is driven by morale.

 Sresta organic has already rooted themselves to major international markets like
US, Europe, Canada, West Asia, Mauritius etc.

Weakness

 High cost of production.

 Lack of effective marketing by the brand.

 Organic crops take a lot more time to harvest than regular crops.

 Lack of proper distribution system.

24
Opportunity

 The organic food industry in India is developing at 25% per year.

 The government is increasing its support for organic farming.

 Increasing awareness about the use of fertilizers and pesticide in farming have
lead the population to adopt organic.

 Untapped global markets.

 Tie-ups with e-commerce like flipkart, amazon.

Threats

 By realizing the increasing potential of organic sector many FMCG companies

are trying to tap into the market.

 Increase in Inflation rate is making the products costlier.

 Climate change, erratic monsoon.

25
3.8 PESTEL Analysis

• Increased political support for

organic industry
Political • Stable Government

• Increased Disposable Income

• Growing GDP
Economical • Decrease in Inflation

• Fertilizer and pesticide free produce

• Increasing health awareness
Social

• Increase investment in R&D

• New recipies and continuous
Technological innovation

• Require legal permission from

regulatory bodies like NPOP
Legal • For export USDA

• Organic farming is environment

friendly, reduces land pollution
Environmental • It will also reduce the demand of
fertilizers and pesticide

26
27
4.1 Primary Objective:

The primary objective of the project is to understand how to retain existing

consumers. factors influencing the retention of existing customers.

4.2 Secondary Objective:

To understand the key factors influencing the buying behavior of existing

consumers.
Studying the perception of consumers towards Sresta Organic Products.

4.3 Research Problem

The research problem is to determine how to achieve complete consumer loyalty. But,
this is the era of Polygamous loyalty, i.e. the consumers are not 100% loyal to any brand.
Their commitment fluctuates at a fast frequency. So it is nearly impossible to achieve
complete loyalty. Thus, we have to find out the key points which influence their choice.

4.4 Consumer Loyalty Model

In the cycle of success, an investment in your employee’s ability to provide superior

service to customers can be seen as a virtuous circle. Effort spent in selecting and training
employees and creating a corporate culture in which they are empowered can lead to
increased employee satisfaction and employee competence. This will likely result in
superior service delivery and customer satisfaction. This in turn will create customer
loyalty, improved sales levels, and higher profit margins. Some of these profits can be
reinvested in employee development thereby initiating another iteration of a virtuous
cycle.

28
29
30
5.1 Type of Research

The entire project was done based on the data collected and also from other sources like
Internet. The project was a Qualitative research.

5.2 Research Design

5.2.1 Sampling Technique

Convenience Sampling

5.2.2 Interview Method

The interview method of collecting data involves presentation of oral-verbal stimuli and
reply in terms of oral-verbal responses. This method was done through personal
interviews inside the allocated stores.

5.2.3 Sample Universe

All the people who visited the store.

5.2.4 Sample Size

A sample size of 116 customers is taken.

5.2.5 Location

The location is Pune. In pune the stores taken for sample are: Dorabjee’s(camp, viman
nagar, NIBM), SPAR and Big Bazar(kothrud).

5.2.6 Analytical Tool

Tabulation & pie charts

31
5.2.7 Data Analysis Techniques

The entire analysis of data was done with the aid of Microsoft Excel programming. Then
tabulation, pie charts were drawn according to the responses.

5.3 Data Collection

The data collected were of 2 types –

1. Primary Data

2. Secondary Data

5.3.1 Primary Data:

Primary data is collected through original source, i.e. Questionnaire.

5.3.2 Secondary Data:

Secondary data was made available from external sources like the internet, news article,
magazines, etc.

5.4 Limitations of the Study

Some of the limitations faced when conducting the survey were as follow –

1. Time constraint was there as no Customer or Prospect was able to give more than
5 minutes.

2. A sample size of 116 customers has been used due to time restrictions.

3. Getting the real responses out of the customers was difficult as the people were
busy with their shopping.

32
33
Q1. How will you Rank the following factors for purchasing organic
food according to your preference? (1st - highest and 5th - lowest)

Table No: 6.1

1st 2nd 3rd 4th 5th

QUALITY 25 33 27 19 12

PRICE 32 36 28 17 3

AVAILABILITY 42 35 25 8 6

PACKAGING 6 3 10 30 67

BRAND NAME 11 9 26 42 28

Graph No: 6.1

100%
11 9
90% 3 26
6 28
80% 42
35 10
70%
42 BRAND NAME
60% 25 PACKAGING
50% 30
67 AVAILABILITY
36
40%
32 28 PRICE
8
30% QUALITY
17
20%
33 6
10% 25 27 3
19
12
0%
1st 2nd 3rd 4th 5th

34
Table No: 6.2

FACTORS MEAN
QUALITY 3.34
PRICE 3.66
AVAILABILITY 3.85
PACKAGING 1.72
BRAND NAME 2.42

Graph No: 6.2

3.85
4 3.66
3.34
3.5

3
2.42
2.5

2 1.72

1.5

0.5

0
QUALITY PRICE AVAILABILITY PACKAGING BRAND NAME

Interpretation:

As we can see in this survey, that Availability has the highest mean of 3.85 followed by
Price of 3.66, followed by Quality of 3.34, followed by Brand Name of 2.42, and
Packaging of 1.72 .

35
Q2. How much do you spend on 24 Mantra products in a month? (INR)

Table No: 6.3

Amount (INR) No. of responses

Less than 1000 10
1000-2000 11
2000-3000 28
3000-4000 24
4000-5000 28
More than 5000 15

Graph no: 6.3

30
25
20
15
10
5
0
More
Less than 1000- 2000- 3000- 4000-
than
1000 2000 3000 4000 5000
5000
Series1 10 11 28 24 28 15

Interpretation:

As we can see in this survey out of 116, 10 consumers spend less than Rs.1000 on the
brand. 11 consumers spend about Rs.1000-2000 on the brand. 28 consumers spend about
Rs.2000-3000 on the brand. 24 consumers spend about Rs.3000-4000 on the brand. 28
consumers spend about Rs.4000-5000 on the brand. 15 consumers spend more than
Rs.5000 on the brand.

36
Q3. Do you think 24 Mantra products are easily available?

Table no: 6.4

Product Available No. of responses

yes 61
no 55

Graph no: 6.4

47%
yes
53%
no

Interpretation:

As we can see in this survey out of 116 samples, 61 consumers feel that 24 Mantra
products are easily available to them. While, 55 consumers feel that 24 Mantra products
are not easily available to them.

37
Q4. Which type of products do you prefer or usually buy from 24
Mantra? (Multiple Choice)

Table no: 6.5

Food preference No. of responses

Staple food 103
Ingredients 74
Breakfast food 16
Snacks 39
Ready to cook and Ready to drink 8

Graph no: 6.5

120
100 103

80
74
60
40 39
20 16
8
0
Staple food Ingredients Breakfast Snacks Ready to cook
food and Ready to
drink

Interpretation:

As we can see in this survey out of 116 respondents, 103 consumers purchase 24 Mantra
staple foods. 74 consumers purchase Ingredients. 16 consumers purchase Breakfast Food.
39 consumers purchase Snacks. 8 consumers purchase Ready-to-cook and Ready-to-
drink.

Note: Please note that the consumers are overlapping in this survey, means that the same
consumer purchases more than one category of products from 24 Mantra.

38
Q5. Which of the following statement regarding the Display and
Ambience do you agree with?

Table no: 6.6

Both the Display and ambience is poor 6

Display of products is poor, ambience of store 25
is good
Display of products is good, ambience of 19
store is poor
Both the Display and ambience is good 66
Total - 116

Graph no: 6.6

5%
Both the Display and
ambience is poor
22%
Display of products is poor,
ambience of store is good

Display of products is good,

57% ambience of store is poor

16% Both the Display and

ambience is good

Interpretation:

As we see in this survey that out of 116 consumers, 5% people feel that both the display
of products and the ambience of the store is poor. 22% people feel that display of the
products is poor but the ambience of the store is good. 16% people feel display of the
products is good but the ambience of the store is poor. 57% people feel that both the
display of the products and the ambience of the store are good.

39
Q6. Please Rate the Quality of 24 Mantra?

Table no: 6.7

1 (very poor) 3
2 (poor) 9
3 (average) 52
4 (good) 44
5 (very good) 8
Total - 116

Graph no: 6.7

60 52

50 44

40

30

20
9 8
10 3

0
1 (very poor) 2 (poor) 3 (average) 4 (good) 5 (very good)

Interpretation:

As we can see in this survey out of 116 respondents, 3 people have rated the quality by
24 Mantra as very poor. 9 people have rated the quality poor. 52 people have rated the
quality average. 44 people have rated the quality good. 8 people have rated the quality
very good.

40
Q7. Please Rate the Pricing of 24 Mantra?

Table no: 6.8

1 (very expensive) 14
2 (expensive) 48
3 (affordable) 40
4 (inexpensive) 12
5 (very inexpensive) 2
Total - 116

Graph no: 6.8

48
50
45 40
40
35
30
25
20 14
12
15
10
2
5
0
1 (very 2 (expensive) 3 (affordable) 4 (inexpensive) 5 (very
expensive) inexpensive)

Interpretation:

As we can see in this survey out of 116 respondents, 14 people have rated the prices
charged by 24 Mantra as very expensive. 48 people have rated the prices expensive. 40
people have rated the prices affordable. 12 people have rated the prices inexpensive. 2
people have rated the prices very inexpensive.

41
Q8. Which of the following statement regarding the overall Personality
and Knowledge of the Sales Promoter do you agree with?

Table no: 6.9

Poor Personality, Poor Knowledge 16

Good Personality, Poor Knowledge 34
Poor Personality, Good Knowledge 18
Good Personality, Good Knowledge 48
Total - 116

Graph no: 6.9

14%
Poor Personality,
Poor Knowledge
41%
Good Personality,
Poor Knowledge

29% Poor Personality,

Good Knowledge

Good Personality,
Good Knowledge
16%

Interpretation:

As we can see in this survey out of 116 respondents, 14% people feel that the 24 Mantra
sales promoters have poor personality and poor knowledge about the products. 29%
people feel that sales promoters have good personality but poor knowledge. 16% people
feel that sales promoters have poor personality but good knowledge. 41% people feel that
sales promoters have good personality and good knowledge.

42
Q9. How likely is it that you will recommend 24 Mantra to a Friend or
Colleague? (1 = Not likely and 10 = definitely)

Table no: 6.10

Rating No. of Response per rating

1 0

2 1

3 2

4 5

5 12

6 22

7 17

8 22

9 21

10 14

0% 1% 2%

12% 4% 1

10% 2
3
4
18%
5

19% 6
7
8
9
19%
15% 10

Graph no: 6.10

43
 NET PROMOTER SCORE (NPS)

𝑇𝑜𝑡𝑎𝑙 𝑟𝑒𝑠𝑝𝑜𝑛𝑠𝑒 𝑓𝑟𝑜𝑚 1−6

Detractors = × 100 = 36.21%
𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒

𝑇𝑜𝑡𝑎𝑙 𝑟𝑒𝑠𝑝𝑜𝑛𝑠𝑒 𝑓𝑟𝑜𝑚 7−8

Passives = × 100 = 33.62%
𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒

𝑇𝑜𝑡𝑎𝑙 𝑟𝑒𝑠𝑝𝑜𝑛𝑠𝑒 𝑓𝑟𝑜𝑚 9−10

Promoters = × 100 = 30.17%
𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒

NPS = Promoters – Detractors

NPS = 30.17 - 36.21

NPS = -6.03

Interpretation:

As we can see in the above survey the ratings given by 116 respondents that will they
recommend the brand or not. According to the NPS analysis it’s a -6.03.

44
Q10. How likely is it that you will participate in 24 Mantra Consumer
Relationship Development Program? (For e.g. Vouchers, discount
coupons, free samples, etc.)

Table no: 6.11

Not Likely 17
May be 64
Very Likely 35
Total - 116

Graph no: 6.11

15%
30%
Not Likely
May be
Very Likely

55%

Interpretation:

As we can see in this survey out of 116 respondents, 15% people are not likely to
participate in any relationship development program. 55% people might participate in any
relationship development program. 30% people are very likely to participate in any
relationship development program.

45
Q11. Do you purchase organic food from other brands apart from 24
Mantra?

Table no: 6.12

Yes 25
No 91
Total - 116

Graph no: 6.12

22%

78%

Interpretation:

As we can see in this survey out of 116 respondents, 22% consumers of 24 Mantra also
purchases from other organic brand. 78% consumers only purchases organic food from
24 Mantra.

46
 FINDINGS

1) The key factors selected by consumers are:

i. Availability with the mean of 3.85
ii. Price with the mean of 3.66 and
iii. Quality with the mean of 3.34
Availability is the most crucial factor for the existing customers.

2) Out of 116 respondents, 28 people spend Rs.2000-3000 and the same number of
people spends Rs.4000-5000 a month. Overall, most people spend more than
Rs.3000 per month on 24 Mantra organic.

3) 53% out of 116 people feel that 24 Mantra products are easily available to them.
But 47% people, which are quite a significant figure, feel the opposite.

4) According to this survey, most consumers purchase staple food and ingredients of
24 Mantra but the market share of breakfast food and Ready-to-cook and Ready-
to-drink is comparatively small.

5) The majority, i.e. 57% people says that both the display and ambience is good.
This is a major strength for the company as people are appreciating their product
presentation.

6) Out of 116 respondents, 52 responded as Average product quality and 44

responded for Good quality.

7) 48 consumers out of 116 responded that the product prices are expensive, 40
consumers said that the products are affordable, which means that consumers are
not happy with the prices of the organic products.

47
8) Although majority of respondents, i.e. 41% thinks that the sales promoters have
both good personality and good knowledge, still 29% respondents feels that the
personality of sales promoter is good but knowledge is poor. 16% consumers
voted for poor personality but good knowledge and 14% consumers voted that
both the personality and knowledge is poor.

9) In this survey, the NPS came a -6.03 which is very low. So majority of consumers
will not recommend the brand. This tells us that the consumers are not satisfied
with the brand.

10) According to this survey, 55% said they might participate in consumer
relationship development program. 30% are very likely to participate and 15% are
not interested.

11) 78% consumers said that they only purchase 24 Mantra organic produce, while
22% consumers go for other brands too. In this 22% consumers 10 people buy
from pro nature, 10 people buy from organic tatva, 3 people buy from go earth
and 2 people buy from conscious food.

12) Many consumers complained about degrading quality, high prices especially in
poha and sugar. Many said that 24 Mantra products should be made available in
DMart or other local stores.

13) The company distributes the products through a leased distribution depot located
in the outskirts of Pune. Due to heavy traffic on the depot Sresta is suffering
problems in the distribution of products throughout Pune.

48
49
 RECOMMENDATIONS

 Tie-ups with multi-chain department store like D-Mart, Food bazar should be
started as to make the products more available.(refer finding no. 3 and 12)

 The company should focus on distribution of products. They should invest in a

Distribution depot of their own this will fasten the sales as many consumers
switch to substitutes due to no availability of products.

 The company should specifically advertise its breakfast food (like cornflakes,
honey, tea, juice) and its new product line which is RTC and RTD, as these items
are not selling compared to staple food. Various mass communication means like
television advertisement, roadside billboards could be used so that people
recognize the brand when they see it in the stores.

 The company should provide on-the-job training to promoters for an appropriate

time period so that they can confidently face the consumer’s query. (refer finding
no. 8)

 Sresta can create awareness among the people through Exhibitions, promotions,
distributing some free samples in the market, giving out discount vouchers.(refer
finding no. 10)

 The company should reduce the cost of the products. They should set up
processing facilities in various states to reduce the time taken and cost incurred in
transportation. This will be expensive in the beginning but is cheap and more
efficient in the long run.

 According to the research the NPS of Sresta is -6.03 which indicates that the
company is not successful in retaining their existing consumers. So the company
should try to improve their relationship with consumers by CRM.

50
51
 BIBLIOGRAPHY

 http://www.wikinewsindia.com/english/sresta-natural-bio-to-expand-24-mantra-
organic-product-range/

 http://www.techsciresearch.com/report/india-organic-food-market-forecast-and-
opportunities-2017/325.html

 http://www.thehindu.com/news/cities/Hyderabad/sresta-natural-bio-to-expand-24-
mantra-organic-product-
range/article8276017.ece?utm_source=RSS_Feed&utm_medium=RSS&utm_cam
paign=RSS_Syndication

 http://apeda.gov.in/apedawebsite/organic/Organic_Products.htm

 http://economictimes.indiatimes.com/industry/cons-products/food/organic-food-
market-growing-at-25-30-awareness-still-low-
government/articleshow/49379802.cms

 https://en.wikipedia.org/wiki/Loyalty_business_model

Books Referred
1. Philip Kotler, Marketing Management, Pearson India Education Services Pvt. Ltd,

14 Editions, 2015, ISBN - 9780132102926

2. C.R. Kothari, Research Methodology, Vikas Publishing House Pvt. Ltd, 2014,

ISBN – 978-81259-5205-3

3. G.C Beri, Marketing Research, McGraw Hill Education (India) Private Limited,

5 Editions, ISBN – 978-93-392-2334-2, 93-392-2334-9

52
 QUESTIONNAIRE

Q1. . How will you Rank the following factors for purchasing organic food
according to your preference? (1st - highest and 5th - lowest)

1st 2nd 3rd 4th 5th

QUALITY
PRICE
AVAILABILITY
PACKAGING
BRAND NAME

Q2. How much on an average do you spend on 24 Mantra products in a

month? (INR)

Less than 1000 1000 - 2000

2000 - 3000 3000 - 4000

4000 - 5000 More than 5000

Q3. Do you think 24 Mantra products are easily available?

Yes No

53
Q4. Which type of products do you prefer or usually buy from 24 Mantra?
(Multiple Choice)

Staple food (Cereals, Dal, Flour, Rice)

Ingredients (Spices, Powder, Paste, Masala mix, Oil, Salt, Sugar)

Breakfast food (Cornflakes, Tea, Juice, Honey)

Snacks (Poha, Cookies, Millets, Puffed Rice)

Ready to cook and Ready to Drink

Q5. Which of the following statement regarding the Display and Ambience
do you agree with?

Both the Display and the Ambience is poor.

The Display of products is poor, but the Ambience of the store

is good

The Display of products is good, but the Ambience of the store

is poor

Both the Display and the Ambience is good.

Q6. Please Rate the Quality of 24 Mantra?

1 (very poor) 4 (good)

2 (poor) 5 (very good)

3 (average)

54
Q7. Please Rate the Pricing of 24 Mantra?

1 (very expensive)

2 (expensive)

3 (affordable)

4 (inexpensive)

5 (very inexpensive)

Q8. Which of the following statement regarding the overall Personality and
Knowledge of the Sales Promoter do you agree with?

Poor Personality, Poor Knowledge

Good Personality, Poor Knowledge

Poor Personality, Good Knowledge

Good Personality, Good Knowledge

Q9. How likely is it that you will recommend 24 Mantra to a Friend or

Colleague? (1 = Not likely and 10 = Definitely)

1 2 3 4 5 6 7 8 9 10

55
Q10. How likely is it that you will participate in 24 Mantra Consumer
Relationship Development Program? (for eg. Vouchers, discount coupons,
free samples, etc)

Not Likely

May be

Very Likely

Q11. Do you purchase organic food from other brands apart from 24
Mantra?

Yes No

If Yes, Which Brand ________________

Q12. Any Suggestions, feedback for 24 Mantra?

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

56