title

A PROJECT REPORT OF CONSUMER BUYING BEHAVIOR ON SUBMITTED TO GUJARAT TECHNOLOGICAL UNIVERSITY FOR MASTER OF BUSINESS ADMINISTRATION ACADEMIC YEAR: - 2009-2010 BY JIGNESH M PANDAV MBA SEM-II ENROLLMENT NO: 097610592038 UNDER THE GUIDANCE OF MR.KARTIK. M. KHATSURIYA SAHJANAND INSTITUTE OF MANAGEMENT BHAVNAGAR

STUDENT DECLARATION

I hereby declare that the project report entitled Consumer Buying Behavior

At

Submitted in partial fulfillment of the requirements for the degree of MBA to Gujarat Technological University, Gujarat is my original work and not submitted for the award of any other degree, diploma, fellowship, or any other similar title or prizes. I have prepared this report within 45 days. I am very happy in submitting this report to the department of business administration.

Date: Signature: Place: Bhavnagar M Pandav Jignesh

PREFACE A practical knowledge in a students life is very important. It helps a student to know the real life situation and problems of life. Same is the case with the corporate world. Theoretical knowledge is very much needed but practical knowledge is equally important. This practical knowledge to a student is given in a form of training.

Training helps a student to interact with the experienced people of the corporate world and hence learn more from them. Here, the student learns how to apply the theoretical knowledge in practice.

Being a student of MBA it was a very valuable and memorable experience at SHASHI INDUSTRIES. We learnt the management subject, came across to various day to day activities of various department in the organization. This wonderful experience has given me a new light to what I had studied.

This training was undertaken during the period of 5th JUNE to 20th JULY 2010 for the 2ndsemester of MBA programmed of, during the academic year 2009-10. I have undergone training at SHASHI INDUSTRIES; I have tried my level best in the construction of this report.

ACKNOWLEDGEMENT Every person has his grandparents and good parents the grandparents are these people whose knowledge, experience, and attitude you absorbed almost without releasing it, they should be "Acknowledgement" It is matter of greater pleasure for me to get this opportunity of expressing out deep and sincere sense of gratitude to our principal Ms.Saroj Vats " and our co-ordinate Ms. Ami Pandya and I like to thank Mr. Kartik Khatsuriya whose guidance and generous support give me sufficient strength to prepared this project report. I like to thank "Mr.Tusharbhai Vadher" who is a M.D. in the "SHASHI INDUSTRIES and to Mr.Sanjeevbhai who is marketing manager of Shashi industries. I also like thanks my project report guide Mr.Yatin Bhatt, HR manager of Shashi industries, whose devoted a good deal of his valuable time and experience in the preparing of this report he really helps me to collecting data which were required for the enrichment of this project report on "SHASHI INDUSTRIES" My sincere thanks to all the staff member of the SHASHI INDUSTRIES for their Co-operation and support to me during my training.

Yours Sincerely,

Pandav Jignesh M Date: Place: Bhavnagar

EXECUTIVE SUMMARY

This project report is based on consumer buying behavior on Maza incense stick of Shashi industry. My study is descriptive in nature. I have primarily described consumer buying behavior on Maza incense stick of Shashi industry. I have putted small survey through questionnaire on 100 households in Bhavnagar city. The main objective of study is to know about consumer buying behavior toward Maza incense stick of shashi industry. To know the Awareness to Maza incense stick. To know the influence group of customers to Incense stick.To know what the features customers are want in incense stick market. To know the feeling of customers towards price level of incense stick. The primary data of Shashi Industries are collected through questionnaire method which is directly collected from relevant respondents in Bhavnagar city. The secondary data of Shashi Industries are collected through media advertisement, companys catalogue & poster or through website or internet. For my problem I

have collected fresh data i.e. primary data directly from relevant respondents in Bhavnagar city. My data analysis plan includes tabulation of collected data. I have put data into graph and ultimately I have come to conclusion The Finding & Conclusion: Awareness of Maza brand is excellent. It is very popular brand in Bhavnagar city. Most of the people who purchase incense stick take decision by themselves, but family, relatives also play an important role. Most of the consumers are middle class people (from occupation). Smell is the most leading features in incense stick. Majority of the people are buying incense stick from provision stores. Round about 60% people find confusion in buying incense stick due to number of brands exist in the market. Therefore I can say that buying behavior is somewhat Dissonance Reducing.

TABLE OF CONTENTS
Sr. No. 1. 2. 3. 4. PARTICULARS Page No. 7 28 42 45 46 47 50 51 53 54 55 57

GENERAL INFORMATION MARKETING MANAGEMENT LITRATURE REVIEW RESEARCH DESIGN & MEHODOLOGY 4.1.PROBLEM DEFINING 4.2. THEORY RELEVANCE PROBLEM 4.3.RESEARCH OBJECTIVES 4.4.RESEARCH DESIGN 4.5. DATA SOURCES 4.6.RESEARCH INSTRUEMENT 4.7.SAMPLING PLAN 4.8.LIMITATION OF THE STUDY

5 6 7 8

4.9.DATA ANALYSIS & INTERPRETATION FINDING & CONCLUSION SUGGESTION BIBILIOGRAPHY QUESTIONNAIRE

58 75 77 79 80

GENERAL INFORMATION

INDEX

SR NO. 1.1.

PARTICULARS

PAGE NO.

INTRODUCTION

1.2.

COMPANY PROFILE

10

1.3.

HISTORY & DEVELOPMENT

12

1.4.

SIZE OF THE UNIT

15

1.5.

FORM OF BUSINESS ORGANIZATION

16

1.6.

MANUFACTURING PROCESS

17

1.7.

COMPANY PRODUCT

19

1.8.

ORGANIZATION STRUCTURE

24

1.9.

TIME KEEPING SYSTEM

25

1.10.

AWARDS

26

1.1. INTRODUCTION

I have visited the SHASHI INDUSTRIES at BHAVNAGAR for practical study as mention in syllabus. Shashi industry is big name in the market of incense stick. More than 55 brands of shashi industry are in the market.

Shashi industries have their 5 branches at Bhavnagar and rests are at Bangalore. I have undergone through practical training in the area of marketing at GIDC chitra plant and its corporate office at selarsha road, darbari kothar, Bhavnagar.

v SHASHI INDUSTRY - BHAVNAGAR

v MAJA FREGERENCE - BHAVNAGAR

v SHASHI INDUSTRY - BANGALORE

v SHASHI INCENCE - BANGALORE

v SHASHI EXPORTS - BANGALORE

The products of this company have strong image in the mind of customer. The product are their brand name like Camay, denim, Maza, pavitrachandan, rose, royal, mogra, kevda, nag champa,etc.

The firm was sole proprietorship till 1994.than after it has been in 1994-95 it converted into partnership firm. The partners are Shashibhai vadher and his son tusharbhai vadher. MR. Tusharbhai is the managing director at Bhavnagar. Mr. Nileshbhai & Mr. Hiteshbhai is managing director in Bangalore base units of Shashi group.

I have prepared my report on Consumer buying behavior regarding incense stick and awareness of Maza incense stick in Bhavnagar.

1.2. COMPANY PROFILE

1) Name of industry :

Shashi Industries

2) Establishment year :

1960

3) Address :

Office:- Opp. Darbari kothar, Shelarsha road,

Bhavnagar.

Factory:- plot no.36, G.I.D.C. chitra, Bhavnagar.

4) Telephone :

(0278) 2430539, 2428254

5) Fax no :

(0278) 436743

6) E-mail :

shashiho@sancharnet.in

7) Website :

www.incensestickindia.com

8) Form of organization:

Partnership firm

9) Products :

various type of incense sticks.

10) Size of unit :

Large scale

11) Bankers :

State Bank Of India, H.O.Bhav.

12) Accounting year :

April to March

13) Auditor :

M/s J.C.Rampura & company

14) M.D. :

Mr.shashibhai vadher

15) Investment from :

1) Owned Capital 2) Borrowed Capital

16) Factory Area :

2000 sq.feet

17) Departments : &

Production, Marketing, Finance

HR.

18) Other Companies : Bhavnagar

1) Shashi industries

2) Maza fragrance - Bhavnagar 3) Shashi industries Bangalore 4) Shashi exports Bangalore 5) Shashi incense Bangalore

19) Production capacity:

25000 Dozens per year.

20) Total workers:

300

21) Competitors: Shreeji and Laxmi Agarbatties -

Cycle incense stick Banglore Bhavnagar

1.3. HISTORY & DEVELOPMENT

ABOUT THE COMPANY

Mr.shashibhai vadher was the founder of shashi industries, which was established in 1960. At the time of establishment period they were engaged in producing and marketing Pan-masala & kimam.

After long time period, about 13 years, the idea of producing incense stick comes in their mind. So he decided to start the incense stick business in the 1975.

When they selected this business, he observed that 95% of incense stick market was covered by Banglore. So, Mr.shashibhai vadher decided to start incense stick business with modern attitude and wanted to introduce fancy fragrance of incense and also strategic sticks of marketing. This was how the firm shashi industries have been established.

Since 1994 it was a proprietorship and after that it converted into partnership firm. The partnership is between Mr. Shashibhai vadher and his son Mr. Tusharbhai vadher in this unit. The partnership ratio is 60:40.

SHASHI INDUSTRIES started its 2nd unit at Bangalore in 1998 because of two reasons i.e...

1. The raw materials are easily available and its result in less production cost.

2.

Easy to export from Bangalore.

ABOUT THE PRODUCT

A Shashi industry was manufactured and produced its 1st product named A-ONE in the market in 1976. This product covered the market in short term period. After the success of this product the firm launched RUTURAJ in 1978 and PAVITRA CHANDAN in 1980. At this stage the turnover was up to 8 to 19lacs. In 1984 the shashi industries famous product i.e. MAZA AGARBATI was introduced.

In 1989 they introduced Denim & Zoola. The company is famous most of only by Maza & Denim incense. Their other product are camay,gulal,rose royal, shashi kevda, shashi sugandh, Sunday to Sunday, cool breeze, etc.

The products are available in different packing in the market. For example, dhanyawad, kevda, mogra, today etc are available in one packet. Camay, jaipur, magnet flora, Ruturaj tall, etc are available in two types of packing. Rose royal-3, Pavitra Chandan-4, Denim6, Maja-7 types of packing are available in the market.

In super six are available in 70grams which are includes Camay, Denim, Jaipur, Pavitra chandan, and Rose royal. And in top six are available in 20gms which are includes bluebird, Camay, Denim, Jaipur, Maza, and Yes. The prices are somewhat high but its quality is also good to compare with price.

Some product of shashi industries were dropped out because of some raw material or chemical is not available and some product dropped out due to the change in choice and preference of consumers. I.e. A-one & Voice.

Shashi industries has launched new product named Swadesh in current year 2010.

ABOUT THE COMPETITORS

The main reasons of competition are:

1. 2. 3. 4.

Small amount of capital required Many facilities provided by Government High profit margin No excise duty

The incense industries require small capital investments. So that many registered and non-registered companies are already stable in the market.

According to one survey of Mundra Advertising Research Team shashi industries got 3rd rank in producing incense. In the survey of Sugandh Singar got 1st rank and cycle got 2nd rank, but both of these strong competitors are at Bangalore. But in Gujarat shareeji products and Laxmi Agarbatties are competitors of shashi industries.

In Bhavnagar there are also more than 100 factories producing incense.

1.4. SIZE OF THE UNIT

Size of the unit means what is the investment of the company, what is the turnover the company and what is their standard. There are mainly two factors are considered.

1. Total investment 2. Total employees.

According to government policy there are certain standards regarding scale of operation which are under as: 1. Small Scale Industry investment between 1 corer to 5 corer 2. Medium Scale Industry investment between 5 corer to 7 corer 3. Large Scale Industry investment more than 7 corer

Shashi industries current turnover is more than 10 corers, so a shashi industry has maximum features of large scale industry.

1.5. FORM OF BUSINESS ORGANIZATION

There are many forms of business organization. They are under as: v Sole proprietorship: v Partnership: v Co-operative: v Pvt. Ltd.Company: v Public sector unit: only one owner minimum 2 and maximum 20 minimum 2 and maximum 10 minimum 2 and maximum 50 minimum 2 and maximum 100

A shashi industry was a sole proprietorship firm when it was started. Shashibhai vadher was the only owner of the firm. But in 1994-95 it was converted into partnership firm. The partners are Mr.shashibhai vadher and his son Tusharbhai vadher.

The reason behind this is only to get tax relief from the government. Shashi industries posses all the characteristics of partnership firm according to partnership act 1956.

1.6. MANUFACTURING PROCESS

The manufacturing process of shashi industry is simple and not complicated. In this industry, there is no use of modern tools and equipment. So we can say that manufacturing process of shashi

industry is 100% man base. The most important factor used in manufacturing process of any industry is the raw materials. The raw material of shashi industry is only raw incense without any chemical or any other process.

PROCESS: To do things in the systematic manner is called a process. The production process of shashi industry is under as:

1.

Assortment of raw incense:

Assortment means collection. Firstly the raw incense, which are imported, are collected in bulk as well as perfume, which are imported from the foreign country are tasted by the labors.

2.

Adding fragrance:

Now, the 2nd important step of manufacturing process is adding fragrance. The bundles of incense are deep into a big container, which contain perfumes and chemicals.

3.

Drying process:

in this process the incense are kept in a big plate of aluminum for drying. The incenses are dried for minimum 3 to 4 hours. And after then the incenses are kept for drying process.

4.

Weighting process:

The 4th step is weighting process. In this process the incenses are weighted in different grams like 8gms, 25gms, 30gms, 40gms, 75gms, and 110gms etc and also according to number of incenses as per the order or demand of the customers.

5.

Packing process:

This is the final step in this process. Incenses sticks are firstly packed in plastic bags, according to its grams. These are airtight packing so that the smell remains for long time and then pack it in the boxes. Shashi industry have own printing press names Maza printing press.

6.

Quality control section:

Packed good must be passed from quality control section. In this section supervisor of the firm checks its product quality to improve effectiveness.

7.

Marketing:

Products are sold to ultimate consumers and dealers.

1.7. COMPANY PRODUCTS

Shashi industry is very famous in producing Brand Incense stick the firm is producing about more than 55 types of incense sticks. Some of them are as under.

1)

Maza

2) Denim

3) Camay

4) Rose royal 8) Nag

5) Jasmin Champa

6) Cool breeze 7) Kevda

9) Supersix 13) Taal 17) Swadesh Flora 21) Organic

10) Yes 14) Jaipur 18) Bakhur

11) Ruturaj 15) Gulab 19) Nature

12) Pavitra Puja 16) Mogra 20) Denim

22) Pavitra Chandan Etc.

All the products are available in different packing of 10gms, 20gms, 30gms, 70gms, 80gms, 120gms, 140gms, 420gms etc. it is also available in packing of amount of sticks like to 10sticks, 30, 75, 100, etc.

Denim Flagship Brands

Oriental, Musky, Floral fragrance. Qty. per Unit : 10 Sticks, 20 Sticks, Hexagonal & Economy Packs

Maza Flagship Brands Available in Woody - Musky - Spicy - Oriental Fragrances

Bakhur / Jasmin / Rose / Ful Assorted Fragrances Bakhur, Jasmin, Rose & Ful fragrances Qty. per Unit : Flat Box 20 Sticks / 1 Dozen Pack

Camay Gold Premium Masala Flora - Masala Made with natural oils, Sandal wood, Resnoids and Herbs Qty. per Unit : 15 Sticks / 1 Dozen Pack

Cool Breeze Fancy / Oriental Products Fresh - Musky - Cologne Fragrances Qty. per Unit : Flat Box, 20 Sticks / 1 Dozen Pack

Shashi Top 6 [] Gift Boxes - Premium Products Assorted 6 Hexagonal Pack in a Gift Box Qty. per Unit : 20 sticks / Half Dozen pack
Nag Champa Universal

Nag Champa Nag Champa Masala Fragrance

Shashi Top 6 Gift Boxes - Premium Products Assorted 6 Hexagonal Pack in a Gift Box Qty. per Unit : 20 sticks / Half Dozen pack

Industry is producing so many brands but I have selected MAZA to study consumer behavior. MAZA is the most famous brand of shashi industry. MAZA is also available in different packing of price. I have studied the awareness of MAZA in Bhavnagar city.

1.8. ORGANIZATION STRUCTURE

Any business organizations success depends upon its organization structure. The structure should be easy and understandable because unnecessary complex structure created many problems.

1.9. TIME KEEPING SYSTEM

The time keeping system is very important for an organization. Shashi industries have also a separated time keeping office at the front door. It is for permanent workers only. The time keeping office also maintains register for wages and salary and it also help in determining the production cost.

There is only on working shift and attendance is taken by workers signature. There is also card system used for labors.

In SHASHI INDUSTRIES we know that all workers are working on contract base. So contractor determines the time of working hours. For the staff member the working hours are 9:00 am to 7:30 pm. For the workers working hours are 9:00 am to 6:00 pm. In this working hours lunch break and tea break are included. Lunch break time is 12:00 am to 1:30 am and tea break time is 3 Oclock. After it the workers again sinuously up to 7:30 pm.

1.10. AWARDS

MARKETING MANAGEMENT

INDEX

SR NO. 2.1.

PARTICULARS

PAGE NO.

INTRODUCTION

30

2.2.

ORGANIZATION STRUCTURE OF MARKETING MANAGEMENT

31

2.3.

MARKET SEGMENTATION

32

2.4.

PRICING POLICY

33

2.5. 2.6.

PRICE LIST CHANNEL OF DISTRIBUTION

34 36

2.7.

ADVERTISING

38

2.8.

MARKETING STRENGTH

41

2.1. INTRODUCTION

Marketing is the process of not only of selling and advertisement but also of satisfying the need of consumers. Perhaps the simplest definition of marketing is: marketing is the delivery of customer satisfaction at a profit. The two golden goals of marketing are: To attract new customer by promising superior value and to keep current customer by delivery satisfaction. But many people think of marketing only as selling and advertising iceberg. Now lets have a look upon how shashi industry is practicing in such an important department.

2.2. ORGANIZATION OF MARKETING DEPARTMENT

The structure of organization provides us the detail information of employees and how they related with each other. Shashi industries have a separate marketing department, which controls all the marketing activities of the firm. In shashi industry, the organization structure of the marketing department is well organized, which chart is given under as:

Mr. Tusharbhai vadher is the managing director of the marketing department.

2.3. MARKET SEGMENTATION

Market consists of buyers and buyers differ in one more ways. They may differ in their wants, resources, locations, buying, attitudes and buying practices. Through market segmentation companies divide large, heterogeneous markets into small segment that can be reached more efficiently with products and services that must their unique needs.

Segmentation of market is necessary to serve better to the target market. Any products market is not a single market. But it is a composite of a various sub-market.

Shashi industry has covered its market in India and foreign. The market is divided as three units. All the units covered the activities as follows:

1. BHAVNAGAR UNIT: Gujarat, Maharashtra, Rajasthan, Bihar, Delhi, and Uttar Pradesh.

2. BANGLORE UNIT: Karnataka, Andhra Pradesh, West Bengal, Assam, Meghalaya, Orissa, Jammu & Kashmir and Punjab.

3. SHASHI EXPORT: Gulf countries, Nepal, Singapore, South Africa, Switzerland, Taiwan, U.S.A. etc.

2.4. PRICING POLICY

Price is the amount of money charged for a product or services. More broadly, price is the sum of the values that customers exchange for the benefits of having or using the product or services. The factors to be consider at the time of deciding price is:

v Demand of the product v Average cost of the product v Consumers behavior

v Government regulation v The rate of profit expected v The degree of competition

The pricing policies are guideline to carry out pricing strategy.

Shashi industry pricing policy is under as: Cost of production + profit + other expenses like dealers commission + General Commission, transportation cost etc.

In this firm, if any changes come into price, then it becomes applicable from the beginning of the month.

Thus, the price of any incense stick in this industry are decided after referring the above given process completely.

2.5. PRICE LIST

Sr. No

Name of the products

Packing (in gms) 20 30 80 160 22 20 40 75 150 22 20 70 22 20 70 20 30 70 90 180 400 70 70 25 75 22

Price (rs.) (of a dozen) 72.00 104.00 210.00 374.00 81.00 74.00 132.00 300.00 418.00 85.00 60.00 172.00 80.00 46.00 160.00 46.00 92.00 160.00 192.00 342.00 639.00 160.00 160.00 82.00 230.00 88.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Maza Maza silver pack Maza Maza Maza Hexa Gonal Denim Denim Denim Denim Denim Hexa Gonal Rose Royal Rose Royal Rose Royal Hexa Gonal Ruturaj Mutha Ruturaj Pavitra Chandan Mutha Pavitra Chandan Pavitra Chandan Pavitra Chandan Pavitra Chandan Pavitra Chandan Shashi Kevda Shashi Mogra Yes Yes Yes Hexa Gonal

16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Jaipur Jaipur Megnet Flora Gulab Gulab Large Hexa Gonal Current(5 in 1) Sunday to Sunday(7 in 1) Bluebird Hexa Gonal Top Six (6 in 1) Trith Trith Camay Camay Hexa Gonal Camay Gold Super Six(economy)6 in 1 Maza Dhoop stick Maza Dhoop Large President President Dasang Dhoop stick

25 75 22 70 60 45 stick 7 sick 22 25 70 20 22 25 10 stick 20 stick 10 stick 20 stick

83.00 242.00 146.00 168.00 160.00 122.00 190.00 82.00 506.00 52.00 140.00 72.00 76.00 330.00 98.00 per pack 24.00 74.00 22.00 70.00

2.6. CHANNEL OF DISTRIBUTION

Distribution channel is a set of inter-dependent organization involved in the process of making a product or service available for use or consumption by the consumer or business. Most of the producer use intermediates to bring their products to market.

The shashi industry is use two channels that are:

Direct Channel:

A marketing channel where there are no intermediary levels, the company chooses to sell direct to consumer i.e.(Door to Door selling by Salesman) under as:

Company Consumer

Indirect channel:

Indirect channel have one or more intermediaries levels. Shashi industries has also use indirect channel to sells its product in market, through distributor to retailer and retailer to consumers. Like:

Company Retailer Consumer Distributors

2.7. ADVERTISEMENT

According to American marketing association advertising means any paid of non-personal presentation and promotion of ideas, goods or services by and identified sponsor. Mostly commercial firms use advertising. It is also used by wide range of non-profit organizations, professionals and social agency that advertise their causes to various target publics.

Mainly there are four type of advertising:

v Informative advertising: advertising used to inform consumers about a new product or feature and to build a primary demand.

v Persuasive advertising: advertising used to build selected demand for a brand by persuading consumers that if offers the best quality for their money.

v Comparison advertising: advertising that compares one brand directly or indirectly to one or more other brands.

v Reminder advertising: advertising used to keep consumers thinking about a product.

Advertising is a creative activity conducted through mass educational media such as newspapers, magazines, radio, T.V. etc.

Main objective of shashi industry:

v Advertising campaign in shashi industry is to increase the sales. v Enter into new market-segments. v Support sales force. v Improve dealers relation. The advertising budget shashi industry is Rs.25, 000=00 (7 to 8% of their total turnover). Shashi industry uses two types of

advertisement viz. General and retail or local advertising and national advertising. LOCAL ADVERTISING: Shashi industries have appointed Vivek Advertising as local marketing agency. They use mostly newspapers, local magazines, hoardings, wall painting etc. also by painting on local bus, gift articles, airbags, carry bags etc. in newspapers they give their advertisement mostly in Saurastra Samachar, Fulchhab and Gujarat Samachar etc. and in magazines, chitralekha, and Abhiyan. It also gives their advertisement in cinema halls. NATIONAL ADVERTISING: shashi industry appointed Apex Advertising and Swift Advertising for a national level. Company uses two types of media like print and broadcasting. In print media they give that advertisement in national level newspapers and magazines i.e. Times of India, India Express, Business India, etc. in broadcasting they give their advertisement in Doordarshan, Zee TV and Radio. We often see many hoardings of Maza and Denim on highway, Railway station, and S.T. station and in public places. They have given wall painting in Gujarat, U.P. Bihar, Rajasthan, and Maharashtra. Shashi industry prepares that advertising copy through Vivek advertising co. and Apex advertising co. Some examples of their U.S.P. are: DENIM: Feel something new MAZA: Mast mijaj Maza MAJA: The only choice ZOOLA: Bring home the natural ambience.

The company pays some portion of advertising expenses and the remaining advertisement budget of this firm should be fixed by ratio of total turnover. Generally it keeps 7 to 8% of advertisement budget of total turnover, for advertisement in T.V. they are in contact with Mundra Advertising Agency. So advertisement plays an important role in this firm. Publicity of product is most important function of the company. The product is firstly known by its advertisement and second by its quality

Advertisement is creation of demand. For shashi industry; You name it, we make it Once a fictiontoday a fact

2.8.MARKETINGSTRENGTH: 80 Nos of Field Force, 15 Nos Area Sales Managers, 4 Sales Managers, 600 Distributors, more than 2 lakhs Retailers Talking a Traditional Handicraft, Agarbatti creating a brand value around it, Garnering a sizable portion of the domestic market, as well as exporting to more than 17 countries, is a commendable feat. Shashi Industries could produce any kind of Fragrance, required by the market. This proves an ultimate ability to take up any challenges.

Mr.Tusharbhai S. Vadher (M.D., Ahmadabad) monitors sales planning with Dynamism & experience for 17 years. PUBLICITY:TALK OF THE TOWN The best media experienced. Television, Radio, Newspapers, Hoarding, Posters, Stickers, Handbills, Products Guide are means for reminders and brand awareness used.

3. LITRETURE REVIEW

What is a literature review?

A literature review is an evaluative report of information found in the literature related to your selected area of study. The review should describe, summarize, evaluate and clarify this literature. It should give a theoretical base for the research and help you (the author) determine the nature of your research. Works which are irrelevant should be discarded and those which are peripheral should be looked at critically. A literature review is more than the search for information, and goes beyond being a descriptive annotated bibliography. All works included in the review must be read, evaluated and analyzed (which you would do for an annotated bibliography), but relationships between the literature must also be identified and articulated, in relation to your field of research.

3.1. Consumer Behavior

Consumer behavior and consumer decision-making have become prominent research topics in the various fields of consumer science in recent years (Schiffman & Kanuk, 2000). Generally, consumer behavior is defined as: "The activities that people engage in when selecting, purchasing, and using products and services so as to satisfy needs and desires. Such activities involve mental and emotional processes, in addition to physical actions" (Wilkie, 1990). Virtually, all decisions involved in developing an effective marketing mix for a product or service rely on thorough knowledge of the consumers who comprise the target market (Johnson & Mullen, 1990). Understanding the behavior of the consumer can help marketers anticipate reactions to changes in the marketing mix, or determine whether new products are likely to be adopted.

Understanding buyer behavior is one of the more perplexing tasks confronting every business owner. The difficulty arises from the heterogeneity of buyers, from their being groups of individuals who differ from one another. But differences notwithstanding, consumers do share attitudes, opinions, reactions, and desires at various times. Business experience, marketing research, theoretical constructs and models, and trial-and-error methods help to find some of the common denominators. This study aims to identify a pattern of behavior among its chosen respondents.

3.2. Factors Affecting Consumer Buying Behavior

The consumers' perception of a product highly affects its decision on what product to buy. The decision process is influenced by the information available to the consumer and the way in which the consumer processes that information. The decision process is also influenced by the consumer's beliefs, attitudes, and intentions as well as many other individual characteristics. Two stages in the decision process are particularly relevant to this study: search is whether the consumer seeks label information when selecting products and alternative evaluation whether or not the consumer uses label information in considering product alternatives.

Whether consumers will search for and use label information will be influenced by both characteristics of the product and of the buyer. Product characteristics include the extent to which the product's probable performance can be assessed by visual inspection and its complexity, that is, the number of decisions the consumer is required to make about it. Consumer characteristics include experience with purchasing the product, and the kinds of criteria the consumer uses in judging the product. The evaluative criteria are shaped by the consumer's beliefs, attitudes, and perception of risk in the purchase.

Research on sensation and perception, attention, categorization, inference making, information search, memory, attitude and behavior, attitude formation and formation, conditioning and satisfaction have been undertaken to understand consumer behavior (Jacobs, Latham & Lee, 1998). As stated by Cobanoglu, Ekinci and Park (2003), attitudes towards purchase behavior are believed to be shaped by many factors such as direct experience with the product, information acquired from others, exposure to mass media, etc. there are other factors that affect consumer buying behavior regardless of the nature of business, the product

itself, customer service, and satisfaction. This study aims to identify the presence of such factors using the case of coffee brand and experience of Starbucks and Pacific Coffee.

3.3. Conclusion: The main objective of this research is to identify the common factor that affects consumer buying behavior of university students when it comes to coffee brand and experience. Due to the increasing competition of Starbucks and Pacific Coffee in Hong Kong, the conveyance of this timely case study will serve as imperative evaluation on the coffee shop business in the region as well as emerging and specific consumer culture among the chosen respondents.

http://sampleresearchproposals.blogspot.com/2009/03/sampleresearch- proposal-on-coffee.html

RESEARCH DESIGN

& RESEARCH METHODOLOGY

4.1. PROBLEM DEFINING

Research is based on problem. Problem identification is the first stage in research procedure. Defined problem is half solved problem; any researcher must define a problem before he undertakes research study.

Here, my define problem is CONSUMER BUYING BEHAVIOR I want to know consumers behavior while buying incense stick, what are the features they want in incense sticks, which reference group they affects while buying incense stick. I want to know which type of buying behavior affects incense sticks. I have taken this problem with the advice of Mr. Sanjeevbhai (Marketing Manager) consumer buying behavior plays an important role in marketing system of the product. I also want to know the awareness of MAZA incense stick in Bhavnagar city.

4.2. THEORY RELEVANCE PROBLEM

Buying behavior is a comparatively new field of study. The concept buyer behavior has been gaining importance since 1960. Understanding consumer behavior and knowing customer are never simple. Customer may say one thing but do another. So to know the buying behavior is very complex to anyone. Defining of buying behavior:

All psychological, social and physical behavior of potential customer as they become aware of, evaluate, purchase, consume and tell other about product and services. Buying process:

Problem Recognition

Information search

Evaluating of alternative

Post-purchase Experience & Behavior Purchase decision

TYPES OF BUYING BEHAVIOR

There are four types of consumer buying behavior given as follow. 1. 2. 3. 4. Complex Buying Behavior Variety Seeking Buying Behavior Dissonance reducing Buying Behavior Habitual Buying Behavior

We can understand briefly by following diagrammatic presentation:

High Involvement

Low Involvement

Significant differences between brands Few differences between brands

Complex Buying Behavior

Variety Seeking Buying Behavior Dissonance reducing Buying Habitual Buying Behavior Behavior

Complex buying behavior: Consumer buying behavior is in situations characterized by high consumer involvement in a purchase and significant difference among brands. Example car, house, TV.

Dissonance reducing buying behavior: CBB in situations characterized by high consumer involvement but few perceived differences among brands. Example paint, cement.

Habitual buying behavior: CBB in situations characterized by low consumer involvement and few significant brand differences. Example detergent, toothpaste.

Variety seeking buying behavior: CBB in situations characterized by low consumer involvement but significant perceived brand differences. Example biscuit, snacks.

In the product of incense stick market where various brand of incense stick are exist in market with high consumer involvement and few perceived difference between brands. The price of incense stick is low in comparison with other products so consumers easily purchase it, so that consumer involvement is very high. Where incense sticks market all brands have perceived difference among them. So, Dissonance reducing buying behavior is applicable here for incense stick brand.

4.3. RESEARCH OBJECTIVES

The purpose of research is to discover answer of question through application of scientific procedure. The main aim of research is to find out the truth which is hidden and which has not been discovered yet. We can say that the purpose of research is to find solution to problem in marketing field.

My objectives of study of consumer behavior in Bhavnagar are as under: v To know the customers behavior to incense stick. v To know the Awareness to Maza incense stick. v To know the influence group of customers to Incense stick. v To know what are the features customers want in incense stick market. v To know the feeling of customers towards price level of incense stick.

4.4. RESEARCH DESIGN

Research design is defined as the arrangement of conditions and structure for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. My procedure is given below:

v TYPES OF RESEARCH There is four types research like: Exploratory Research Descriptive Research

Diagnostics Research Casual Research

Exploratory research:-

But as far as my problem is concern, the exploratory research is suitable. It is concern with discovering the general nature of problem. It is more flexible and it relies on both secondary & primary data, judgment sample, small survey and case analysis. An exploratory research focuses on the discovery of ideas and is generally based on secondary data. Which is already used in to other channel through of presented the data. So that is dependence on the kindly information to finding that the used of research instrument process finding of particular outcome.

Descriptive research:A descriptive study is undertaken when the researcher wants to know the answer of who, what, why, whom and how. That is questionnaire used the help of research problem so that matter wise found the right conclusion.

4.5. DATA SOURCES:

During the in-plant training the data was collected as per the requirement and based on questionnaires.

 The visit to different department was carried out in order to accumulate maximum knowledge. During the training major source of data collection were as follow:

Primary Data Secondary Data

Primary Data: Primary data is fresh data collected and used first time in research. The primary data of Shashi Industries are collected through questionnaire method which is directly collected from relevant respondents in Bhavnagar city. The various personal from marketing department personally communicated as well as they answered the various question asked by us.

Secondary Data: As name suggest it-self secondary data means data which are already exist somewhere. It might be used some where just we have to collect it. The secondary data of Shashi Industries are collected through media advertisement, companys catalogue & poster or through website or internet. For my problem I have collected fresh data i.e. primary data directly from relevant respondents in Bhavnagar city

4.6. RESEARCH INSTRUEMENT

This research is made through questionnaires. Quite often questionnaire is considered as the heart of survey of operation. In this method a questionnaire is given to the people concern with a request to answer the question and return the questionnaires. A questionnaire consists of number of questions are in define on the form or set, the respondent have to read and understand the question the answer in this page meant for the purpose in the questionnaires itself for the research when respondents need to any kind of help the researcher was available to solve their problem.

4.7. SAMPLING PLAN

TARGET POPULATION: The population for this research study is consisting of the house hold of Bhavnagar city. SAMPLING UNIT: In this study the sampling units is individual. SAMPLE SIZE:

My sample size is 100 respondents (house hold) SAMPLING METHOD: The samples are selected by using convenience sampling method. A convenience sample is one in which the only criterion for selecting the sample unit is the convenience of the sampler.

DATA COLLECTION METHOD: There are so many methods for primary data collection but I have selected the Questionnaire method to collect primary data. However for the convenience of some respondents Schedule method has also been used. My questions are closed end questions.

DATA ANALYSIS PLAN: My data analysis plan includes tabulation of collected data. I have put data into graph and ultimately I have come to conclusion

4.8. LIMITATION OF THE STUDY

In this project I have used the sample survey method and taking opinion of the different types of people so, this opinion may be a wrong and may be right.

 I have done 100 people sample surveys if surveys are more than 100 people we can get more effective research.

The geographical area was very much limited to residential area & so the results are not particularly reflection of the current behavior.

The major factor constraining the training programmed was the time duration mentioned by the institute.

Even the high grade personal was enabling to spare sufficient time because of their various organizational activities.

During the departmentation stage of the various secret companies matter were not disclosed as it was against rules and regulation.

The training was complained within the particular limit area so location was the major constrain factor.

DATA ANALYSIS & INTERPRETATION

4.9. DATA ANALYSIS & INTERPRETATION

Q. 1 which brand of incense sticks is you using?

Particular MAZA DENIM SWADESH OTHER OF SHASHI OTHERS TOTAL No. of respondents 33 19 02 10 36 100 Percentage 33% 19% 02% 10% 36% 100

Interpretation: Out of 100 respondents 33% are using Maza brand of incense stick 19% sample respondents are using Denim and only 02% respondents are using Swadesh other brands of shashi like

Camay, gulal, rose royal, jaipur, kevda, shashi sugandh, Sunday to Sunday, cool breeze, and so on Have only 10% respondents 36% of the total respondents are using other brands. We can say that Maza is leading brand of shashi industries. It includes all versions of Maza brand like 10 sticks, 30 sticks, 100 sticks, etc. By observation I can say that the consumer is flexible in using incense stick, there for sometimes 36% other brand user might be using shashi industries various brands. So, this can be a limitation to the study.

Q. 2 what is the price level of brands you are using?

Particular 1 to 10 11 to 20 21 to 30 Above 30 Not decided Total

No. of respondents 22 58 08 02 10 100

Percentage 22% 58% 08% 02% 10% 100

Interpretation: Out of 100 respondents 22% respondents are using incense stick which price is Rs. 1 to 10 per pack 58% respondents are using pack which price is between Rs. 11 to 20. Only 8% respondents some of high class people are using high priced brand i.e. above Rs. 30 they are 2% Most of the respondents are using incense stick which price is between Rs. 11 to 20. They might be medium class people and 10% respondents have not decided the price. Their tendency to price is flexible. Some time they use high price brand & some time low priced brand.

Q. 3 Are you aware of Maza incense stick of shashi industries?

Particular

No. of respondents

Percentage

Yes No Total

92 08 100

98% 02% 100

Interpretation: Out of 100 respondents 92% say that they have heard the name of Maza incense stick. Only 8% are not aware of Maza incense stick. From the above interpretation we can say that, there is good awareness about Maza incense stick in Bhavnagar city. This is because, that the Maza brand is one of the oldest brand of the shashi industries. The awareness may be 100% because in my study only 100 respondents are there in sample size and Bhavnagar is one of the large city in Gujarat, so we cannot get much accuracy with low sample size.

Q. 4 Who advise you to buy incense stick?

Particular Dealers Friends Relatives (family) Others N.A. Total

No. of respondents 04 05 33 17 41 100

Percentage 4% 5% 33% 17% 41% 100%

Interpretation: 41% respondents in Bhavnagar city are purchasing incense stick by themselves, 33% respondents are affected by their family relatives, only 5% says that they are being advised by their friends and 4% affected by their dealers. Most of the respondents i.e. 41% are purchasing incense stick by themselves. No one advise them to buy incense stick. They take their own decision while second largest influences are relatives that are family members. Dealers and friends play a very little role in consumers decision making.

Q. 5 which features will you keep in mind while purchasing incense stick first?

Particular Smell Promotional scheme Packing Quality Others Total

No. of respondents 71 04 02 17 06 100

Percentage 71% 4% 2% 17% 6% 100%

Interpretation: Out of 100 respondents 71% respondents give more emphasis to smell of the incense stick. Only 4% people want promotional scheme as a leading features. Packing also gets low response i.e. 2%. On the other hand quality of incense stick got 17%

respondents in its favour while 6% people make tick mark on others.

From above Table and interpretation I can say that smell play an important role in incense stick. Most of the people wants good fragrances in incense sticks while quality is second major role player.

Q. 6 From where do you buy incense stick?

Particular Provision store Sales persons Total No. of respondents 89 11 100 Percentage 89% 11% 100%

Interpretation: Out of total 100 respondents, 89% respondents purchase incense stick from the provision stores and 11% from sales persons. Therefore we can say that most of the people give importance to provision stores. This is because, that unskilled salesman cant convince the consumers properly and skilled or professional educated person do not like to work on door to door selling. Therefore the people do not trust on sales person and the quality sold by them.

The ratio of provision store to sales person is 89: 11; therefore the firm should give more emphasis on retailer and wholesalers in distribution channel.

Q. 7 According to you, what should be the price of single pack with 30 sticks?
Particular Rs. 1 to 10 Rs. 11 to 20 Rs. 21 to 30 Above 30 Total No. of respondents 28 64 08 00 100 Percentage 28% 64% 08% 00% 100%

Interpretation:

28% respondents want the price to be in between Rs. 1 to 10. 64% respondents say that it should be in between Rs. 11 to 21. While Rs. 21 to 30 ranges and above Rs. 30 get 8% and 0% respondents.

Most of the people in Bhavnagar city want that price of the single pack of incense stick with 30 sticks should be in between Rs. 11 to 20.

Shashi industry is providing 30 stick Maza brand in this range. Therefore it is good for an industry. It is obvious that the price of 30 stick packet should not be above Rs. 30 because it would be very high compared to quantity of stick. The quantity, quality and price should be appropriate and proportional.

Q. 8 Do you find any confusion in purchasing due to number of brands in the market?

Particular Yes No Total

No. of respondents 53 36 100

Percentage 59.55% 40.45% 100%

Interpretation:

Out of 100 sample size, 89 respondents have given the answer of this question. I think 11% could not understand the question or there might be other reasons. Therefore I have got 89 responses to this question.

Out of 89 respondents 53 respondents said Yes and 36 respondents said No. from these I can say that 59.55% (i.e.60%)

people finds confusion in purchasing incense stick due to number of brands exist in the market. And 40.45% (i.e.40%) people do not find any confusion in purchasing.

From these I find that consumers behavior regarding incense stick is somewhat Dissonance reducing due to high involvement of brand & few differences between brands.

FINDINGS & CONCLUSION

I have drawn following conclusions from the study.

 Most of the consumers are middle class people (from occupation)

I found that Maza is leading brand, while second leader is Denim and other brand of shashi industries has very little market share.

Most of the people of city are using incense stick pack which price is between Rs. 11 to 20. Some people are flexible in price level. It means sometimes they are using high priced items and sometimes low priced.

Awareness of Maza brand is excellent. It is very popular brand in Bhavnagar city.

Most of the people who purchase incense stick take decision by themselves, but family, relatives also play an important role.

Elder persons play a very important role in purchase of incense stick than younger boys.

 Smell is the most leading features in incense stick. More than seventy percent people want good quality.

Majority of the people are buying incense stick from provision stores, while only 11% people get it from sales persons.

According to my sample study 64% respondents said that price of single pack with 30 sticks should be in between Rs. 11 to 20 and this is the highest response.

Round about 60% people find confusion in buying incense stick due to number of brands exist in the market. Therefore I can say that buying behavior is somewhat Dissonance Reducing.

SUGGESTIONS

After drawing conclusion and studying data analysis, I would like to suggest some points as under:

Maza and Denim are leading brands so the firm should do line extension or product extension. It means company should expand product category under these brand name.

Company should adopt Middle value pricing strategy. It means company should mostly produce incense stick packages which price is between Rs. 11 to 20.

 Some of the products of the firm are still in introduction stage, so they concentrate attention on marketing & promotional mix of those products.

In developing products company should take opinion of elder persons who are generally up to 40 years old or more regarding the types of smell and other feature because mostly they affect the purchase of incense stick.

The firm should try to add better smell to an incense stick as people like it the most.

The buying behavior is somewhat Dissonance Reducing so; the firm should try to make difference in brands and try to stress that difference in promotional mix and advertising.

In distribution, the firm should be more emphasize to retailer and wholesaler than salesman.

Regarding Maza the firms marketing objective should maximize profit while defending market share.

 The firm should try to find maximum innovators to the Maza brand. Firms some products are in declining stage, they should be phased out.

BIBILIOGRAPHY

Marketing Management (Reference book) Philip Kotler

Shashi industrys office, darbari kothar, Bhavnagar.

 Company website: p

http://shashiind.com/about_market.as

http://sampleresearchproposals.blogspot.com/2009/03/sampleresearch-proposal-on-coffee.html

QUESTIONNAIRE Name: Address: Age: Occupation: Sex: Phone:

1. Which brand of incense stick you are using? Maza [ ] Denim others [ ] [ ] Swadesh [ ]

Others of shashi [ ]

2. What is the price level of brand you are using?

1 to 10 21 to 30

[ ] [ ]

11 to 20 above 30

[ ] [ ]

Undecided

[ ]

3. Are you aware of Maza incense stick of shashi industries? Yes [ ] No [ ]

4. Who advised you to buy incense stick? Dealer [ ] friends others [ ] [ ] Self [ ]

Relatives [ ]

5. Which features will you keep in mind while purchasing Incense stick first? Smell [ ] Quality Others [ ] [ ] Packing [ ]

Promotion scheme [ ]

6. From where do you buy Incense stick? Provision store [ ] Sales person [ ]

7. According to you what should be the price of single pack with 30 stick? 1 to 10 [ ] 11 to 20 [ ]

21 to 30

[ ]

Above 30

[ ]

8. Do you find any confusion due to number of brand in the market (while purchasing)? Yes [ ] No [ ]

Date: Place:

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