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FINAL REPORT
ONPREFERENCE TOWARDS
COFFEE
Submitted to
PUNJAB TECHNICAL University, JALANDHAR
in the partial fulfillment of requirement for the
degree of
(MASTERS IN BUSINESS ADMINISTRATION)
PROJECT GUIDE:- Submitted
By:-
Mr. DIVAKAR JOSHI SUBHASH
CHAND
(H.O.D) MBA IV (Sem)
81403317097
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DECLARATION
This is to state that the Project titled PREFERENCE
TOWARDS COFFEE is based on the original work carried
out by me and is being submitted towards partial fulfillment of
the requirement for the MBA program of the Punjab Technical
University, Jalandhar. This has not been submitted for the
award of any other degree or diploma.
Name and Signature of the Student
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help received during course of investigation has been fully
acknowledged.
Mr.
Divakar Joshi
HOD
CERTIFICATE II
This is to certify that the project report submitted by
Subhash Chand of Punjab Technical University for the
award of degree of MBA (Marketing) is a bonafide and
authentic piece of work carried under my guidance and
supervision. This quality of work fulfills all the requirement
needed for the said training.
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Project Guide
Mr. Ramandeep
Gautam
CERTIFICATE III
This is certified that project report titled PREFERENCE
TOWARDS COFFEE submitted by Subhash Chand
Roll No.81403317097 to Punjab Technical University
Jalandhar in partial fulfillment o MBA 4th Sem has been
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approved by student advisory after an oral examination
of same in collaboration with external examiner.
External
Examiner
CONTENTS
CHAPTER I INTRODUCTION
1-5
1.1 Introduction of Coffee in India
1.2 Coffee Cultivation
1.3 Growth & Development of Industry
1.4 Present Status of the Industry
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CHAPTER II BACKGROUND OF THE STUDY
6-13
2.1 Marketing
2.2 Importance of Marketing2.3 Consumer Behavior
2.4 Determinant of Consumer Behaviour
2.5 Marketing and Consumer Behaviour
CHAPTER III PROFILE OF THE ORGANIZATION
14-25
3.1 Origin of the Organization
3.2 Growth & Development of the
Organization
3.3 Present Status of the Organization
3.4 Functional Department of the
Organization
CHAPTER IV RESEARCH METHODOLOGY
26-30
4.1 Title of the Study
4.2 Statement of the Problem
4.3 Objectives of the Study4.4 Scope of the study
4.5 Limitation of the study
CHAPTER V DATA ANALYSIS
AND INTERPRETATION
31-49
CHAPTER VI FINDINGS AND RECOMMENDATIONS50-54
ANNEXURE AND BIBLIOGRAPHY
55-61
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LIST OF TABLES AND GRAPHS
Sl No. Particulars Page No.1 Number of Male and Female Respondents Surveyed 32
2 Age Group of Respondents 33
3 Occupation of the Respondents 34
4 Consumption of Coffee 35
5 Alternate Choice Among the respondents 36
6 Percentage of consumption of Branded unbranded of
Both
37
7 Percentage of Consumption of filter coffee, instant
coffee, or both
38
8 Percentage of Consumption of coffee through out the
year
39
9 The season in which the surveyed respondents consume
more coffee
40
10 The Different brands of coffee, respondents are aware
of
41-42
11 Attributes of coffee respondents perception 43-4412 The reason for why coffee is consumed most often 45-46
13 Quantity of coffee powder, the Respondents purchase
once
47
14 Respondents rated the overall quality of branded coffee 48
15 Respondents Consciousness while buying a brand 49
CHAPTER 1
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INTRODUCTION
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1.1 INTRODUCTION OF COFFEE IN INDIA
The province of Kaffa in Ethiopia is considered to be the
original habitat of coffee Arabia (Arabica) and Central Africa
is recognized to be the home of coffee conephora .
The history of coffee dates back to 575 AD when the
first1 cultivation was started in Yemen. This was the period
when Persian invasion put an end to the Ethiopia rules of
Negus celeb that conquered the country in 525 AD.
Certainly, the discovery of beverage resulted in
cultivation of the plant in Abyssians and Arabia but its progress
was slow until 15th and 16th centuries.
The Arabians were jealous of their new found lucrative
industry' and for a time successfully prevented its spread to
other country by not permitting any of the precious berries to
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leave the country unless they had first keen steeped in boiling
water or parched so as to destroy their power of germination.
However, it was not practically possible to watch every
avenues of transport, with thousands of pilgrims journeying to
and from Mecca every year and this explains as how coffee was
introduced in India.
According to the Mythology, Arabica Coffee was
introduced in India sometime during 1600 AD by a Muslim
Pilgrim, Baba budan. He is reported to have brought seven
seeds from Yemen, presumably Mecca and raised seedlings on
his hermitage on the hills near chickmagalur Coffee seeding
gradually came to be planted in the backyard and gardens of
most of neighboring villages specially in Attigundi. It is from
these gardens that seedlings were introduced to Nalakand in
coorg, which subsequently gave raise to luxuriant coorg
plantation of today.
1.2 COFFEE CULTIVATION
AREA UNDER CULTIVATION
Coffee cultivation is mainly confined to the states of
Karnataka, Kerala, Tamilnadu and Andra Pradesh and on
limited scale to Arunachal Pradesh, Assam, Madya Pradesh,
Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Karnataka
accounts for about 53 percent of planted area.
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CLIMATIC REQUIREMENT
A Well distributed annual rain fall is preferable for coffee
major areas growing coffee experience south west monsoon as
in the states of Karnataka, Kerala, all of the north East, Seekim
West Bengal and Maharastra it is also grown in areas which
receive predominant North. East monsoon as in Tamilnadu,
Andrapradesh and Orissa the south west monsoon is normallyactive from June to September with showers during July-
August. The north East is received in spells usually caused by
depression in bay of Bengal during October -December,
December to March is normally dry months. Summer showers
are important for flowering in coffee and are received during
March April certain areas in Tamilnadu were north east
monsoon is prevalent, blossom occurs more than once. Failure
of blossoms leads to crop loss.
Arabica coffee requires a cool and equable climate wile
Robusta thrives well in hot humid conditions the temperature,
rain fall, shade, soil condition and elevation are some of the
important factors and which influence growth of coffee plant.
Elevation influences species cultivated and therefore quality of
coffee Arabica grown well at elevation between 900 and 1200
meters wile Robusta comes up well at lower elevation.
1.3 GROWTH AND DEVELOPMENT OF THE
INDUSTRY IN THE WORLD
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The original architect of the coffee industry are said to be
Ethiopians before 1200 its consumption at spread along the redsea to Adhen and Cairo by 1300, coffee was known to Persia
and by 1500 to Turqui. Shortly thereafter coffee was being sold
to Venues across the Mediterranean sea. Most pilgrims had
started to cultivate coffee in India by 1600 AD. Coffee was
under large-scale cultivation for the first time on 1729. Brazil
was producing 200.000 bags annually by 1850 - 3 Millions
bags annually by 1850.
The first significant export from brazil was made about
1809 i.e. 80 years after their first planting. It took another of
Brazil's coffee exported to reach 4 Million bags.
Soluble coffee was first produced in USA on 1867.
Coffee cultivation was first developed after 1800 in Brazil.
Parallel development occurred after 1850 in most Latin
America countries and as late as 1900 AD in Colombia.
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Brazil coffee history had been complicated by surpluses
of coffee in 1930's and 1860's, equivalent to several year
crops. These surplus were caused due to large extend by Braziluncontrolled production and cultivation of coffee.
IN INDIA
Coffee, which was brought in India by a Muslim pilgrim,
BABA Budan on his return from Mecca, remained as a
backyard plant until sometime. Later, it was developed into
gardens. However, it was in 1820's that the commercial
plantation was opened in south India with British enterprises
and investment. The cultivation of coffee rapidly progressed
during next 40 years. In 1856 there were only 7 British planters
in Mysore. By 1869, their numbers had increased to 662 owing
8094 hectares of the total cultivated area of 58670 hectares.
Indian coffee soon established itself as outstanding in quality
and became a commodity 2nd to none in the world market.
India at present has about 350000 hactares of cultivated land of
which Arabica accounts for 40% and robusta for 60%
1.4 PRESENT STATUS OF THE INDUSTRY
The Indian coffee market is very small. Total market is
smaller than Portugal, which is a country of 9 million people.
India offers an opportunity for market development. At present,
only 8.8% of the population consumes coffee. In the urban
areas the figure is mr17.1% and 5.6% in rural areas.
At present, the only coffee plantation areas are dedicated
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to Arabica and the remaining 60% is dedicated to robusta.
CHAPTER 2BACKGROUND
OF THE STUDY
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2.1MARKETING
Marketing has it's origin in the fact that humans are
creatures of needs and wants. People need food, air, water,
clothing, and a strong desire for recreation, education and other
services. They have strong preferences for particular versions
and brands of basic good and services.
The concept of marking brings us full circle to the
concept of marketing.
Marketing means human activity-taking place in relation
to market.
Marketing means working with market to actualize
potential exchanges for the purpose of satisfying human needs
and wants.
American marketing association approved a definition
for marketing management in the year 1985, "marketing
management is. the process of planning and executing theconception, prizing, promotion and distribution of goods,
services and ideas to create an exchange with target groups that
satisfy the customers and organizational objectives".
This definition recognizes that marketing management is
a process involving analysis planning, implementation and
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control that covers goods services and ideas, that it rests on the
notion of exchange, and that the goal is to produce satisfaction
for the parties involved.
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2.2 IMPORTANCE OF MARKETING
I. IMPORTANCE OF MARKETING TO THE SOCIETY
1. Marketing helps to achieve, maintain and raise the
standard of living of the Society.
2. Marketing increases employment opportunities.
3. Marketing helps to increase the national income.
4. Marketing helps to maintain the economy marketing is a
connecting links between the customer and the
producers.
5. Marketing helps in creating of utilities.
II. IMPORTANCE OF MARKETING TO THE
BUSINESS FIRMS
1. Marketing generates revenue to the firm.
2. Marketing acts as a basis for marketing decisions.
3. Marketing helps the top management to manage
innovation and changes.
2.3 CONSUMER BEHAVIOUR
Consumer behavior is defined as "all psychological,
social and physical behaviors of potential costumers as they
become aware of evaluate, purchase, consume, and tell others
about product and services".
In a simple word buyer behavior is the process by which
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an individual.
Whether, what, when, where, how, and from whom topurchase goods and services.
2.4 DETERMINANTS OF CONSUMER BEHAVIOR
A buyer's purchase decisions are highly influenced by
buyer's
culture, social, personal, psychological factors.
CULTURAL FACTORS
Culture represents an overall social heritage, a distinctive
form of environment or adaptation by a whole society of
people, it includes a set of learned beliefs, values, attitudes,
morals, customs, habits and forms of behavior that are shared
by a society.
SOCIAL FACTORS
This includes :
References group
Consumers accept information provided by their peer
groups on the quality, performance, style, etc. These groups
influence the person's attitude, expose them to new behaviors
and' life style, and create a pressure on the individual.
Family
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Most consumers belong to a family group. The family
can exert considerable influence in the shaping the patterns of
consumption and indicating the decision making roles.
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Roles and Status
Roles are activities of the person in a group. Each role
carries a status. People will choose the products that willcommunicate their status to the society.
PERSONAL FACTORS
A buyer1s decision is also influenced by personal
characteristics, notably the life cycle stage, occupation,
economic, circumstances, lifestyle and personality and self-
concept.
The lifecycle of a person begins with die child birth,
shift to dependent infancy, adolescence, teenage, adult, middle
aged, old then ends with death. Under each stage people's
buying behavior is different.
Person's behavior depends up on his occupation. His need
satisfaction depends on his occupation, which provides him the
means.
Personality is defined as the person's distinguishing
psychological characteristics that lead to relatively consistent
and enduring responses to his or her environment. Personality is
described in terms of such trades as self-confidence,
dominance, autonomy, difference, sociability, defensiveness
and adaptability.
PSYCHOLOGICAL FACTOR MOTIVATION
Motivation acts as a driving force in the floor towards
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purchase action. Motivation that is, set into motion to take
action to fulfill the need or wants. A human being is motivated
by want when these needs are backed by purchasing power itbecomes a want. Motivation is mental phenomenal.
PERCEPTION
Perception is operationally critical. Perception causes the
behavior in a certain way. Perception gives the direction or part
to be taken by the buyer. To perceive is to see, to hear, to touch,
to taste, to smell and to sense something or event or relation
and to organize, interpret and find the meaning in the
experience.
LEARNING
Learning describes changes in an individual's behavior
arising from experience. Learning reference to change in the
behavior brought about by practice or experience. Almost
everything one does or things his learned.
BELIEFS
Believe is a descriptive though that a person holds about
something. These beliefs may be based on knowledge, opinion
or faith.
ATTITUDE
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Attitude describes as a person's emotionalized inclination
to respond positively or negatively to an object or class ofobjects. Attitude affects both perception and behavior to have
an attitude means to be involved emotionally and ready for
action.
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2.5 MARKETING AND CONSUMER BEHAVIOR
The term consumer behavior refers to the behavior thatconsumers display in searching for purchasing, clothing,
evaluating and disposing of product and services that may
expects will satisfy their needs. Study of consumer behavior is
the study of how individual make decisions to spend their
available (time, money, and efforts) on consumption related
items.
The Field of consumer behavior is rooted in the
marketing concept, a marketing strategy that involves in the late
1950. The marketing concept refers to the consumer needs and
wants that are to be given prime importance rather than more
profit making. The marketing concept is based on premises that
a marketer should make what it can sell instead of trying to sell
what it has made.- While the selling concept focus on the needs
the seller, the marketing concept focus on the need of the buyer.
The primary purpose for studying the consumer behavior
as a part of marketing curriculum is to understand why and how
consumers make their purchase decisions. These insights
enable marketers to design more effective strategies.
On the other hand an in depth understanding gives
marketers and unfair advantage over sensitive element like
price, quality, etc., The solution to such practice can curbed by
keeping consumer's well informed about the product itself.
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Finally Phillip Kotler and authority on marketing states,
although it only takes a semester to learn marketing it takes a
lifetime to master it.
CUSTOMERS
C - Care for the customers
U - Understand the customers
S - Study the customers
T - Trust the customers
O - Oblige the customers
M - Meet the customers
E - Evaluate the customers
R - Response the customers
S - Sell and win the customers
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3.1
ORIGIN OF THE ORGANISATION
Coffee Board is a statutory organization constituted
under the Coffee Act VII of 1942 and comes under the
administrative control of the ministry of commerce,
government of India. Coffee board was established to perform
the following function.
1. Promotion of the sale and consumption in India and
elsewhere of coffee product in India.
2. Promotion of agriculture and technological researchin interest of the coffee industry.
3. Assistance to coffee estates for their development.
4. Securing better working condition and improvement
of amenities and incentive for workers.
5. Working of the measures enumerated in coffee act
elating to co-operation of the surplus pool.
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The main purpose for the government of India to set up
the board was to develop the growth of Indian coffee industry.
Increasing coffee production internal marketing, export
marketing, quality control, research and promotion are all
activities of the board.
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3.2 GROWTHS AND DEVELOPMENT OF THE
ORGANIZATION
Indian coffee was mainly depending upon export in the
first quarter of the country. Coffee industry was almost ruined
due to damage by pests & disease and the general depression of
thirties. Planters found the coffee industry to be a losing
proposition and some practically abandoned the plantations.
Government of India passes coffee cess Act XIV of 1935
and set up the first Indian coffee committee in November 1935
with the main objective of promoting the sale and increasing
the consumption of Indian coffee at home & abroad.
One the outbreak of the II world war the industries export
outlet was blocked, resulting in loss of European market. The
industry received setbacks and faced unprecedented crisis. The
Indian coffee market expansion board was set up in 1940.
Indian coffee board succeeded the Indian coffee cess committee
in 1942 under the coffee Act VII of 1942.
This Act brought, within its preview, all estates of 5 acres
and above and reduced the ISO to 10% of the crop in 1942-43.
Further notification dated 28-08-43 every estate under its
preview irrespective of acreage. No ISQ was declared after
1943 till 1992-93 seasons. Every planter was obliged to deliver
his entire crop to except such quantity as were permitted by the
board to retain for his domestic seed purposes.
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On the recommendation of fourth coffee control
conference convened by the government in April 1946, theGovernment placed the life of the Act on a permanent basis. In
fact the unit system of selling coffee by the pool marketing
themselves to enable the board to tackle the problem of control
of coffee, Government passed an amendment Act of 1954 & the
amendment Act was brought into force in 1955. One of the
important changes of the Act was to appoint a full time
chairman to coffee board, as a chief executive of the board with
33 members including the chairman.
For overseas promotion, an Indian coffee market
expansion a board was organized in London. The coffee
commenced works on 20th July, 1936 under the stewardship of
a Director of Indian coffee propaganda in London.
The external promotion work was done in the UK in
close co-operation with the wholesalers, distributors,
institutions and government departments by interesting them in
Indian coffee and removing prejudices against it. Indian coffee
was brought to the notice of public and retailers through
exhibition and displays.
Today external publicity of Indian coffee is largely
through participation in International trade fares and exhibition
and displays. Since its inception in the year 1942 the coffee
board had maintained its monopolistic position over the
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industry by following the pool marketing system. This system
was followed for nearly 50 years i.e., up to the year 1992-93
after which an area of liberalization started were new policieslike ISQ & FSQ were introduced.
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3.3 PRESENT STATUS OF THE ORGANIZATION
Unitil 1992-93 the marketing was regulated by the coffee board. The era of liberalization started with the
INTRODUCTION OF INTERNAL SALE Quota (ISQ)
allowing the growers to sell 30% of their output directly in the
domestic market. The ISQ was replaced by free sale quota
(FSQ) scheme in 1993-1994 allowing the growers in 1994-95
in the season FSQ was increased to 100% for all.
The coffee board which was administrating and
regulating the market fully till 1992-93, has oriented itself for
better research, assistance to industry and training. It also
provides market information and intelligence activities. Last but
not the least it aims at strengthening the existing auctioning
system.
Finally the coffee board is strongly emphasizing on
establishing the future markets for the coffee commodity.
3.4 FUNCTIONAL DEPARTMENTS OF THE
ORGANISATION
A. SECRETARIAT
The secretariat is in charge of the board. It seeks not only
to coordinate the activities of several department of the board
but also deals with those matters, which do not fall within the
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domain of the any other department. A part from the personal
and general matters one of the major functions dealt with by the
secretariat pertains to the labour welfare. The board which hadonly two departments at the beginning has at present the
following department apart from the secretariat viz.
1. Coffee Promotion department
2. Marketing department which has been realized
from the' activity of poor marketing due to
liberalized marketing policy of 100% FSQ for all
small and large growers.
3. Development department
4. Extension Department
5. project planning
6. Research, Assistance and training.
7. Accounts and finance.
The coffee board has 33 members including the
chairman, who* is the Chief executive of the Board except for 3
MPS who are elected as representative, all others are
appointed by the government of India. The board in each
year, out of its own member's elects a person to be a vice
chairman for a period of 12 months.
The structure of the board is a follows :
1. Members of parliament - 3 (Lok Sabha - 2, Rajya Sabha.
2. Representative of the government of the growing state -
* 4 (Karnataka, Tamilnadu, Kerala, Andra pradesh).
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3. Representatives of other coffee growing state
4. Coffee growers - 10 (3 large growers, 7 small growers)
5. Coffee traders - 36. Coffee Curers - 2
7. Coffee Consumers - 2
8. Labour - 4
9. Instant Coffee manufactures 1
10. Eminent personalities in the field of research / marketing
of coffee - 1. The term of the board is for 3 years. The present
Chairman of the Board is Mr.G.V. Krishna Rau.
The Board functions through its size standing committees,
which are appointed by each year by election for a period of
one year.
These are :
1. Executive committee.
2. Marketing committee.
3. Propaganda committee
4. Development committee
5. Research committee
Or
6. coffee quality committee
The members of the board are distributed accordingly in one or
more of the above - mentioned committees.
B. COFFEE PROMOTION DEPARTMENT
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The Promotion Department as a department constitutes of
the Board, is charged with the responsibility of increasing the
sales in the consumption of Indian coffee both within thecountry and abroad. To fulfill this responsibility which is best
owned on the department
under the coffee Act.
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The department has been undertaking several
promotional endeavors which can be broadly classified as under
:1) Generic promotion that is promotion of the image of
the coffee industry and of the coffee as an ideal
beverage.
2) Market Promotion for the sale of the coffee seeds,
coffee powder and the coffee on the cup from units run
by the Board, through agencies etc., in India.
3) Media Promotion through advertisement in
newspapers,
publications of special reports, pamphlets, Board's own
periodicals.
This Department functions through its statutory committee's,
viz. Propaganda committee and the board and is headed by
the directors of promotion (the charts showing the set up of
the department appended).
MARKETING DEPARTMENT
Since, the liberalization of the marketing structure during
1993-1994 the marketing department, in the coffee board has
been reduced to a bare minimum where most of the staff opting
for VRS (Voluntary Retirement Scheme) and few being
employed at other departments.
DEVELOPMENT DEPARTMENT
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The important function-of the development department is
to render financial assistance coupled with the technical
assistance to the coffee growers for the overall developmentand improvement of their estates through increase in
production. In this section the board is implementing 6 types of
loan schemes and 3 types of subsidy schemes.
They are :
1) Intensive cultivation loan
2) Replanting loan
3) Extensive cultivation loan
4) Special purpose loan
5) Hire purchase loan
6) Crop hypothecation loan
7) Replanting subsidy
8) Interest subsidy
9) Expansion subsidy
DEVELOPMENT DEPARTMENT ORGANIZATION
CHART
C. EXTENSION DEPARTMENT
The extension wing is one of the vital links between the
planning committees on the one hand and the research on the
other &
is in extension since 1948.
In order to achieve the various physical & financial
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targets fixed for the industry & to have effective administration,
the entire traditional areas has been divided into 5 regions
headed by officer of the rank of the deputy director (Extension),who in turn is assisted by the senior liaison officers at the
district level & junior director (E) at Bangalore. The traditional
coffee growing areas includes Karnataka, kerala, and Tamil
Nadu, which account for 98% of the area under coffee.
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Presently the extension services in traditional areas cover
an area of 2.35 lakhs hectares owned by 1.15 Lakhs growers.
Out of these, 98% of the growers who own around 61.7% ofthe area form the small growers sector (10 HA & below).
Today the extension services of the coffee board are quite
unique in transfer of technology in the entire country.
D. PROJECT & PLANNING DEPARTMENT
The projects wing is headed by a joint director
(planning & project) at head office, Bangalore. There are three
deputy directors (Vizag, uwahaty & Haflong) eight senior
liaison officers (Andhra Pradesh, Orissa, runachal Pradesh,
Assam, Nagaland, Mizonram, andtripura) and seven junior
liaison officers assisting the respective states in extension,
training and development of coffee. One senior liaison officer
at the coffee board regional office, Guwahati, coordinates the
activities in the North-East region.
The project wings formulate plan project and programs
as per the guidelines to achieve the perspective plan target on
production and marketing. It also functions as the co-ordinating
department in monitoring and evaluation of various plans
programs pertaining to research, extension development,
promotion and marketing department of the board.
E. RESEARCH DEPARTMENT
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Promotion of agriculture and technology in coffee for the
benefit of the coffee industry has been one of the primary
functions of the coffee board. The research department forachieving this objective is dressing itself at central research
institute, central research station research station at central
research substation, Chetalli, Coorg, Karnataka, Chundale,
Kalpetta, kerala, Raghavendranagar, Chintapali, Andhra
Pradesh, Tandigudi, Tamilnadu, Diphu, Assam.
F. FINANCE DEPARTMENT
This department has been divided into two (2): Pool
Fund and General Fund.
POOL FUND:
According to the provisions of section 25 of the coffee
Act, the sale proceeds of coffee are credited to a fund called
Pool Fund. The pool fund transactions involve major activities
as under:
a. Payment to growers whose number is more than a lakh,
in 6-7 installments during a period of 6 months.
b. Arrangements payment to Pool agents with bank for
keeping Funds at various places payment to growers
through pool agents.
c. Periodical payment to pool agents and collecting agents
of the board.
d. Payment of central excise duty, Export duty as well as
duty of custom under the coffee act.
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e. Accounting of stock accounts showing receipts
and disposal.
GENERAL FUND;
Section 30 of the coffee Act prescribes General Fund
is
credited with :
i) All amounts paid to the board by the central
Government under subsection 1) 13, (i.e., proceeds of
duty of customs and duty of excise under section 11
and 12 of the Act reduced by the cost of collection
transferred).
ii) Any sums transferred from the Pool Fund to General
Fund under the provision to subsection (2)of section
32 (provided that where, after the requirement of the
clauses of the subsection have been met, there
remains any excess in the pool fund, the board may,
with the previous section of such excess to the credit
of the General Fund).
iii) All fees levied and collected by the board under the
act.
BORROWING POWER
Rule 38 of the coffee rules, 1955 has been amended with
the effect from 18-10-1988 to enable the board to have cash
credit limit up to Rs.275 crores.
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In pursuance thereof, the state bank has been allowed a
credit limit for 1989 (as requested by the board) of 205 crores.The entire' amount carries the export packaging credit interest
rate of 9.5% p.a. the rate of interest has been reduced to 7.5%
p.a. JBrom: 1-3-1989. any withdrawal in excess of the export
packaging credit attract interest rate at 16.5% p.a.
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CHAPTER 4
RESEARCH
METHODOLOGY
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4.1 TITLE OF THE STUDY
Analysis of consumer perception towards different
brands of coffee in jalandhar city.
4.2 STATEMENT OF THE PROBLEM
Poor consumption of Indian coffee by the consumers in
comparison to consumption of various other brands of coffee.
4.3 OBJECTIVES OF THE STUDY
a. To find out the consumer behavior towards
different. brands of coffee in jalandhar city.
b. To know the consumer's opinion to use coffee.
c. To recommend the new opportunities in the market
for the improvement of sales and consumer
satisfaction towards particular brands of coffee.
4.4 SCOPE OF THE STUDY
The marketing research in this context is concerned with
one of its several function namely marketing research which
deals with the study of the market for analyzing the consumer
behavior and consumer attitude towards different brands of
coffee in jalandhar city.
The result of the study helps coffee industry and coffee
planters to get feedback of the coffee consumers in the fastest
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growing city in Asia viz Bangalore, about their attitudes and
behavior towards different factors.
4.5 LIMITATIONS OF THE STUDY
1. It is confined to jalandhar City
2. It is confined to coffee users only
3. The sample size is confined to 100 people.
A. RESEARCH DESIGN OF THE STUDY
This project is a descriptive research with seeks to find
out "what will be the coffee consumer towards different
brands of' coffee".
B. SAMPLING PLAN
Sampling plan can be classified into 3 sections as
mentioned
below :
Sampling unit
Sampling unit referrs to who are the sample target. In this
project study, the sample units are the business class,
executives, professionals, house wives, students and the worker
class.
Sample Size
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This refers to the total number of people included in the
sampling plan.
In this project study, sample size is 70 coffee consumers
in jalandhar City.
Sampling procedure
This refers to the method incurred for choosing the samples.
In this project study the sampling procedure undertaken is the
random sampling method.
i. PRIMARY DATA
Here first hand information is obtained by distributing
printed questionnaires .
ii. SECONDARY DATA
Here the information is obtained from the boards
publication, report, journals, books, magazines, and
newspapers, management reviews.
C. SOURCES OF DATA
Mainly two sources of data have been used in the making
of this project report.
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SOURCES OF DATA
PRIMARY DATA SECONARY DATA
AQUESTIONNARIES 1) BOOKS
2) JOURNALS
3) BOARDS PUBLICATIONS &
REPORTS
4) MANAGEMENT REVIEW
5) NEWSPAPERS
D. DATA COLLECTION INSTRUMENTS
In this study conducted the foremost data collection
instrument that has been used is the questionnaires. The
questionnaire has been designed both open and closed ended
questions.
D. FIELD WORK
Questionnaire was distributed at office
establishment, colleges, and houses, colleges.
E. DATA PROCESSING AND ANALYSIS OF PLAN
Processing and analysis of data-has been done by means
of printed questionnaires method and many statistical
techniques that include percentage analysis, pie chart,
histograms, which are followed by conclusion and
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recommendation.
CHAPTER 5
DATA ANALYSIS AND
INTERPRETATION
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TABLE. 1
NO.
OF
MALE AND FEMALE RESPONDENTS SURVEYED
PARTICULARS NO. OF RESPONDAENTS PERCENTAGE
MALE 53 53FEMALE 47 47
TOTAL 100 100
ANALYSIS:
Out of 100 respondents surveyed 53% of them are male
consumers & 47% of them are female consumers.
0100090000037800000002001c0000000000040000000301080
0050000000b0200000000050000000c029b08db0a040000002e
0118001c000000fb021000070000000000bc020000000001020
22253797374656d0008db0a0000c0fc0000ac5d110004ee83397
86221000c020000040000002d01000004000000020101001c00
0000fb029cff0000000000009001000000000440001254696d65
73204e657720526f6d616e00000000000000000000000000000
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TABLE -2
AGE GROUP OF RESPONDENTS
AGE GROUP NO OF RESPONDENTS PERCENTAGE
15 -30 years 47 4730-45 years 36 36Above - 45 17 17
Total 100 100
ANALYSIS:
Out of total number of respondents surveyed majorities
i.e. 47% of the respondents belongs to the age group of 15-30
years, 36% of them belongs to the age group in between 30-45
years and the rest i.e. 17% of them belong to the age group 45
years and above,
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47
36
17
0
5
10
15
20
25
30
35
40
45
50
No.ofRespondents
(%)
15 -30 years 30-45 years Above - 45
Age Group
15 -30 years 30-45 years Above - 45
TABLE-3
OCCUPATION OF THE RESPONDENTS
OCCUPATION NO OF RESPONDENTS PERCENTAGE
Business class 21 21Worker class 40 40Housewives 10 10
Students 29 29
Total 100 100
ANALYSIS:
Out of total number of respondents surveyed about 21%
belongs to the business class, about 40% belongs to the worker
class, and about 10%
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21
40
10
29
0
5
10
15
20
25
30
35
40
No.ofResponden
ts(%)
Business
class
Worker class Housewives Students
Occupation
Business class Worker class Housewives Students
TABLE-4
CONSUMPTION OF COFFEE
CATEGORY NO OF RESPONDENTS PERCENTAGE
Daily 76 76
Occasionally 24 24Total 100 100
ANALYSIS:
Out of 100 respondents surveyed 76% of them are daily
Coffee drinkers and 24% of them are occasionally Coffee
drinkers.
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76%
24%
Daily Occasionally
TALBE-5
ALTERNATE CHOICE AMONG THE RESPONDENTS
ALTERNATIVES NO OF RESPONDENTS PERCENTAGE
Tea 41 41Milk 22 22
Soft drink 18 18
Nothing 19 19Total 100 100
ANALYSIS:
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of Respondents (%)Out of total number of respondents about 41 of them
consume Tea, then about 22 of them consume Milk, about 18 of
them consume Soft drink, and the remaining 19 does notconsume at all.
0100090000037800000002001c0000000000040000000301080
0050000000b0200000000050000000c029b08db0a040000002e
0118001c000000fb021000070000000000bc020000000001020
22253797374656d0008db0a0000c0fc0000ac5d110004ee83397
86221000c020000040000002d01000004000000020101001c00
0000fb029cff0000000000009001000000000440001254696d65
73204e657720526f6d616e00000000000000000000000000000
00000040000002d010100050000000902000000020d00000032
0a5a0000000100040000000000dd0a980820582d00040000002
d010000030000000000
TABLE-6
PERCENTAGE OF CONSUMPTION OF BRANDED:
UNBRANDED OR BOTH
PARTICULARS NO OF RESPONDENTS PERCENTAGE
Branded 50 50Unbranded 36 36
Both 14 14
Total 100 100
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ANALYSIS:
Out of total number of respondents surveyed about 50%
of them consume branded coffee, about 36% of them consume
unbranded coffee, about 14% of them consume both branded
and unbranded.
50%
36%
14%
Branded Unbranded Both
TABLE - 7
PERCENTAGE OF CONSUMPTION OF FILTER COFFEE
INSTANT COFFEE OR BOTH
PARTICULARS NO OF RESPONDENTS PERCENTAGE
Filter 43 43
Instant 30 30
Both 27 27
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Total 100 100
ANALYSIS:
Out of total number of respondents surveyed about 43%
of them consume filter coffee, 30% of them consume Instant
coffee, and about 27% of them consume both filter as well as
instant coffee.
0
5
10
15
20
25
30
35
40
45
No.ofRespondents(%)
Filter Instant BothParticulars
Filter Instant Both
TABLE-8
PERCENTAGE OF CONSUMPTION OF COFFEE
THROUGH OUT THE YEAR
PARTICULARS NO OF RESPONDENTS PERCENTAGE
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RESPONDENTS CONSUME MORE COFFEE
SEASON NO OF RESPONDENTS PERCENTAGESummer 8 8
Winter 35 35Rainy 42 42
Can't say 15 15Total 100 100
ANALYSIS:
Out of number of respondents surveyed about 8% of
them take coffee in the summer season, about 35% of them take
coffee in the winter season, about 42% of them take coffee in
the Rainy season, and the remaining 15% of them have no idea.
8
35
42
15
0
5
10
15
20
25
30
35
40
45
No.ofRespondents(%
)
Summer Winter Rainy Can't say
Season
Summer Winter Rainy Can't say
TABLE-10
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DIFFERENT BRANDS OF COFFEE RESPONDENTS
ARE AWARE OFNAME OF BRAND NO OF
RESPONDENTS
Nescafe 94
Bru 91
Brooke Bond Green Lable 62
Diacafe 12
Indian coffee 27
Cothas 68
Coffee Day 65
Kwality 12
Coorg 56
Tata Kaapi 25
ANALYSIS:
The response given by the respondents exceeds the
sample size because of the multiple choices given by the
respondents out of which 94 of the respondents opt for Nescafe:
91 respondents opt for Bru; 68 opt for Cothas; 65 for Coffee
Day; 62 for Brooke Bond Green Level; 56 for Coorg; 27 for
Indian Coffee; 25 for Tata Kaapi and remaining 12 for Diacafe
& Kwality.
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9491
62
12
27
6865
12
56
25
0
10
20
30
40
50
60
70
80
90100
No.ofRespondnets(%)
Nescafe
Bru
BrookeB
ondGreenLable
Diacafe
Indiancoffee
Cothas
CoffeeDay
Kwality
Coorg
TataKaapi
Name of Brand
Nescafe Bru Brooke Bond Green Lable
Diacafe Indian coffee Cothas
Coffee Day Kw ality Coorg
Tata Kaapi
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TABLE 11
ATTRIBUTES OF COFFEE RESPONDENTS
PERCEPTION
ATTRIBUTES NO OF RESPONDENTS
Taste 46
Quality 25
Flavor 18
Aroma 20
Energy 6
Price 40
Packaging 2
Manufacturer's Name 2
ANALYSIS:
Out of the total number of the respondents 46 of them
considered Taste as the top most attribute, followed by 40 of
them going for price as the second attribute 25 of them is
quality conscious 20 of them going for Aroma, 18 of them
going for flavor, 6 of them going for energy, and the remaining
2 of them going for packaging and manufacturer's name as the
main attribute of coffee.
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46
25
1820
6
40
2 2
0
5
10
15
20
25
30
35
40
45
50
No.ofRespondents(%
)
Taste
Quality
Flavor
Aroma
Energy
Price
Packaging
Manufacturer's
Name
Attributes
Taste Quality Flavor Aroma Energy Price Packaging Manufacturer's Name
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TABLE 12
THE RESON FOR WHY COFEE IS CONSUMED MOST
OFTEN
REASONS NO OF RESPONDENTS
Refreshing 79
Reduce fatigue 14
Habit 33
Daily Routine 35Family Trend 18
Fighting Headache 16
To Prevent Sleep 11
To Promote Sleep 1
ANALYSIS:
The response given by the respondents exceeds the
sample size because of the multiple choices given by the
respondents out of which 79 of the respondents consider
refreshing as the main reason for consuming coffee; about 35 of
the respondents says drinking of coffee is a daily routine; 33 as
habit; 18 as family trend; 16 as fighting headache; 14 as reduce
fatigue.
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79
14
3335
18 1611
1
0
10
20
30
40
50
60
70
80
No.ofRespondents(%)
Refreshing
Reducefatigue
Habit
DailyRoutine
FamilyTrend
FightingHeadache
ToPreventSleep
ToPromoteSleep
Reasons
Ref reshing Reduce f atigue Habit Daily Routine
Family Trend Fighting Headache To Prevent Sleep To Promote Sleep
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TABLE-13
PURCHASE ONCE QUALITY OF COFFEE
POWDER THE RESPONDENTS IN A WEEK
ANALYSIS:
Out of the total number of respondents majority of
respondents about 50% of them buys coffee powder in the
range between 100 gm - 500 gm, about 18% of them buys in
between 50 gm - lOOgm, about 17% of them buys in greater
quality i.e., in between 500gm & more and the rest about 15%
of them buys in between 25gm - 50gm.
QUALITY OF COFFEE POWDER THE RESPONDENTS
PURCHASE ONCE IN A WEEK
GRAMS NO OF RESPONDENTS PERCENTAGE
10 gm 500 gm 50 5050gm 100gm 18 18
500 gm and more 17 17
25 gm 50 gm 15 15Total 100 100
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42%
48%
5%5%
Very good Good Medium Poor
TABLE - 15
RESPONDENTS CONSCIOUSNESS WHILE BUYING A
BRAND
PARTICULARS NO OF RESPONDENTS PERCENTAGE
Price conscious 48 48
Taste conscious 43 43
Brand conscious 9 9
Total 100 100
ANALYSIS:
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Out of the total number of the respondents about 48% of
them are price conscious, about 43% of them are taste
conscious and the rest 9% of them consider as brand consciousas the main factor while buying any coffee brand.
48
43
9
0
510
15
20
25
30
35
40
45
50
No.ofrespondents(%)
Price conscious Taste conscious Brand conscious
Particular
Price conscious Taste conscious Brand consciou
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CHAPTER 6
FINDINGS
&
RECOMMENDATIONS
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6.1
FINDINGS
Out of the
total number of
the respondents
surveyed about
53 of them are
Male consumers
and about 47 of
them are Female
consumers.
The total number of surveyed consumers constitutes the sample
size of 100 in which 47 of the consumers belong to the group
15-30 years, then 36 are in the age group 30-45 years, and then
the remaining 17 of them belongs to the age group 45 years and
above.
The different classes in which the respondents falls are
about 21% of them belong to the business, about 40% of them
belong to the worker class, and then about 10% of them belong
to the housewives, and the remaining 29% of them belong tothe students.
The percentage of daily coffee drinkers 76% and 24% of
them are
occasionally coffee drinkers.
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The best alternative given by the respondents, if they
stop drinking coffee are as follows:
35% of them opt for Tea, 17% of them opt for Milk, and
then 15% of them opt for Soft drink, and the remaining 33% of
them opt for nothing.
The percentage of consumption of branded coffee is
about 50% 36% of them consume branded coffee and the rest
14% of them consume both branded and branded coffee. 43%
of the respondents consume filter coffee, and 30% of them
consume Instant coffee and the remaining 27% of them
consume both Filter as well as Instant coffee.
Out of the total number of the respondents 79% of them
prefer to consume coffee trough out the year which is Uniform
and then the rest about 21% of them prefer to consume coffee
occasionally.
Surveyed respondents are 100 out of which 8% of them
take coffee in the Summer season, then 35% of them take
coffee in the Winter season, about 42% of them take more
coffee in the Rainy season, and the remaining 15% of them
have no idea.
The Nescafe brand is the top in the awareness of the
coffee brand as 94 of the respondents are aware of it, 91 of the
respondents aware of Bru, 62 respondents aware of Brooke
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bond green label, 12 of the respondents aware of Diacafe an
Kwality, then 27 of the respondents aware of Indian coffee,
68% of the respondents aware of Cothas, 65 of the respondentsAware of coffee day 56% of the respondents aware of Coorg,
then finally 25 of the respondents aware of Tata kaapi.
Taste is the most attribute by [46 respondents] followed
by the Price [40 respondents ] then Quality coming in the third
position [25] other attributes are Aroma by [20] and then Flavor
by [18] Energy by [6] then Packaging and Brand's name by [2],
The responses given by the respondents exceeds the
sample size because of the multiple choices given by the
respondents out of which' 79 of the respondents consider that
Refreshing as the main reason for consuming coffee, about 35
of the respondents say drinking coffee is a daily routine, 33 of
them say as a habit, 18 of them say as a trend 16 of them say as
fighting headache, 14 of them say as a reducing fatigue, 11 of
them say as opt for preventing sleep as the main factor for
coffee consumption.
Majority of the respondents about 50% of them buys
coffee powder in the range between 50gm-100gm, about 18%
of them buys in the range between 50gm-100gm, 17% of them
buyes in greater quantity i.e. in between 500gm and more and
the rest about 15% of them buyes in between 25gm-50gm:
45% of the respondents are Price conscious, about 43%
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of them are taste conscious and the rest 9% of them consider
brand's name as the main factor while buying any coffee.
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6.2 RECOMMENDATION:
Most of the people like good quality of coffee with
nominal cost hence the authorities / organizations /
industries should make available cost based coffee brand.
Coffee industry should create awareness among the rural
population for the benefit of coffee consumption.
Coffee industry should introduce to the extent the coffee
bar or units at all the public places example railway,station, industrial centers, academic institutions,
hospitals. Etc.
The coffee industry should introduce eco-friendly coffee,
example : the Diacafe.
Promotion must be given to promote those unbranded
coffee, which are not popular in the market.
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QUESTIONNAIRE
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QUESTIONNAIRE
Dear Sir,
Ramandeep Gautam, a Management student is doing a project
work on the ANALYSIS OF CONSUMER PERCEPTION
TOWARDS DIFFERENT BRANDS OF COFFEE IN
Jalandhar CITY", in partial fulfillment of the requirement of
the MBA course of Punjab Technical University. I would be
greatful if you could kindly spare some time to answer these
questions. All the information given you will be strictlyconfidential.
1] Name of the consumer:
______________________________
2]Age group:
15-30 years: [ ]
30-45 years: [ ]
above 45 years: [ ]
3]Sex: a] Male: [ ] b] Female: [ ]
4] occupation:
a] Student: [ ] b] Business:
[ ]
c] Housewife: [ ] d] Worker Class:
[ ]
e] Others [ ]
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5] Income per Month:
a]Rs 15000:
[ ]
6] Do you consume coffee?
Yes: [ ] No: [ ]
7] If yes:
a] Daily: [ ] b] Occasionally: [ ]
when _______________
8] If No:
Mention other:
Alternatives: ____________________________
9) If yes
a] Branded coffee: [ ] b] Unbranded coffee: [ ]
10] If branded
a] Filter coffee: [ ] b] Instant coffee: [ ]
11] If unbranded,
Where do you buy coffee?
___________________________________________
12] Which brand of coffee are currently using?
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__________________________________________________
13] Is your consumption of Coffee uniform through out theyear?
Yes: [ ] No: [ ]
14] If No:
In which season do you do you take Coffee more?
A] Summer: [ ] B] Winter: [ ]
C] Rainy: [ ] D] Can't say: [ ]
15] Is there any particular reason for taking more coffee in
that season?
**THANK YOU**
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BIBLIOGRAPHY
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BIBLIOGRAPHY
1. Marketing by
Phillip Kotler
2. Principles Marketing
P.NJReddy,
S.A.Sherlekar
3. Consumer behavior by
Leen G.Schiffman,
Leslie Lazar Kanuki