consumer perception on mtr

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M . P . B I R L A I N S T I T U T E O F M A N A G E M E N T P a g e 1 STUDY ON CONSUMER PERCEPTION TOWARDS MTR INSTANT FOOD PRODUCTS A Dissertation submitted in partial fulfillment of the requirements for the award of M.B.A. Degree of Bangalore University By EKTA .A. JAIN Registration No: 07XQCM6026 2007- 09 MBA Fourth Semester M P Birla Institute of Management Bangalo re Under the guidance and

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Page 1: Consumer Perception on MTR

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STUDY ON CONSUMER PERCEPTION TOWARDS MTR INSTANT FOOD PRODUCTS

A Dissertation submitted in partial fulfillment of the requirements for the award of M.B.A. Degree of Bangalore University

By

EKTA .A. JAIN Registration

No: 07XQCM6026

2007-09

MBA Fourth Semester

M P Birla Institute of Management

Bangalore

Under the guidance and supervision of:

Dr K V Prabhakar

Senior Professor

M P Birla Institute of Management

Bangalore-560001

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DECLARATION

I hereby declare that this dissertation entitled “STUDY ON CONSUMER

PERCEPTION TOWARDS MAGGI FOOD PRODUCTS IN THE AGE

GROUP OF FIVE-TWENTY YEARS IN BANGALORE CITY” is the result of

my own research work carried out under the guidance and supervision of Prof.

Ashish J Shah, Senior Professor, M P Birla Institute of Management, Bangalore

I also declare that this dissertation has not been submitted earlier to any

Institute/organization for the award of any degree or diploma.

Place: Bangalore

Date: (Ekta .A. Jain)

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CERTIFICATE

This is to certify that this dissertation entitled " STUDY ON CONSUMER

PERCEPTION TOWARDS MTR INSTANT FOOD PRODUCTS “ is

the result of research work carried out by Ms. Ekta .A. Jain under the

guidance and supervision of Dr K V Prabhakar, Senior Professor, M.P.

Birla Institute of Management, Bangalore.

Place: Bangalore (Dr. Nagesh S Malavalli)

Date: Principal

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CERTIFICATE

I hereby state that this dissertation entitled “STUDY ON CONSUMER

PERCEPTION TOWARDS MTR INSTANT FOOD PRODUCTS “Is an

offshoot of the research work carried out by Ms. Ekta .A. Jain under my

guidance and supervision.

Place: Bangalore (Dr K V Prabhakar)

Date: Senior Professor

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ACKNOWLEDGEMENT

I am happy to express my gratitude to Dr. N. S. Malavalli, (Principal, M. P.

Birla Institute of Management) for many valuable ideas imparted to me by

him for my research.

I extend my sincere thanks to Dr. K. V. Prabhakar (Senior Professor)

M.P.Birla Institute of Management, Bangalore for guiding me throughout

this research work.

I also owe a debt of gratitude to all the respondents who have generously

provided me with the information need for my research investigation.

Place: Bangalore

Date: (Ekta .A. Jain)

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CONTENTS

Title Page no.

Executive Summary 10

Chapter : 1 Introduction 12

1.1 Industry Profile – Food Industry in India 13

1.2 Company Profile – MTR 24

1.3 Product Profile – Instant Food Products 30

Chapter : 2 Review Of Literature 50

Chapter : 3 Research Design 60

3.1 Problem Statement 61

3.2 Research Objectives 61

3.3 Research Methodology 62

3.4 Research Limitations 65

3.5 Sets Of Hypothesis 66

Chapter : 4 Data Analysis And Inferences 67

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4.1 Hypothesis Testing 68

4.2 Data Analysis And Inferences Of Customer

Questionnaire

74

4.3 Data Analysis And Inferences Of Retailer Questionnaire 84

Chapter : 5 Major Research Findings 89

Chapter : 6 Recommendations 92

Bibliography 94

Annexure: 96

Customer Questionnaire 96

Retailer Questionnaire 102

Explanation To The Research Instrument Used 106

Directions For Further Research 111

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List of Tables, Graphs and Diagrams

Customer Questionnaire

Se. no. Graphs and Tables Page no.

1 Option Apart From Home Food 74

2 Nutrient & Hygiene Rank 75

3 Reasons To Purchase 76

4 Usage Of The Product 77

5 Frequency Of Usage 78

6 Comparative Taste 79

7 Promotion Of Product 80

8 Place Of Purchasing Of Product 81

9 Satisfaction With Packaging 82

10 Packaging Preference 83

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Retailer Questionnaire

Se. no. Graphs and Tables Page no.

1 Frequency Of Order Taken 84

2 Availability Of Stock Compared To That Of

Competitors

85

3 Satisfaction Level Regarding Trade Terms 86

4 Satisfaction Level Regarding Frequency & Method

Of Delivery

87

5 Satisfaction Level With MTR 88

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EXECUTIVE SUMMARY

MTR Foods Limited is amongst the top five processed food manufacturers in India. They

manufacture, market and export a wide range of packaged foods to global markets that

include USA, UK, Australia, New Zealand, Malaysia, Singapore, UAE and Oman.

MTR's wide range of processed foods is synonymous with quality, taste and convenience.

That's why a growing family of consumers across the globe has made MTR a part of their

daily lives

The research objectives are to find out consumer behavior towards ready to eat food

products, to find out consumer response to pricing of product, to find out the distribution

effectiveness of products and to find out the effectiveness of promotional activities.

This research is a descriptive and analytical study where survey is used to collect data.

The data is collected using a structured questionnaire. Two sets of questionnaire are

prepared, one for the customers and the other for the retailer. Random sampling

technique was used to select the sample for customers and stratified sampling technique

was used to select sample for retailers. The sample size is 100 and 10 for customers and

retailers respectively. The data collected is primary data. The data is analyzed using

graphs and statistical techniques like testing of hypothesis for normal distribution and

Chi-square test.

The research limitation were -the research investigation is confined to 10 retail units in

Bangalore city, limited sample size of 100 for customers due to time and resource

constraints and the study focuses on only MTR retailers.

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The major research findings of this research are –

™ Indian consumers are still not completely ready for instant food products usage.

The still prefer freshly cooked home food than processed and packaged food.

™ There are only few brands in this category which are available like MTR, ITC’s

kitchens of India etc. MTR is the most preferred brand as it is a home brand of

Bangalore and has a rich heritage.

™ MTR does not spend much on their promotional activities, very rarely you

see their advertisements are aired but still it enjoys high brand awareness among

the consumers. This is due to the good word of mouth publicity from a large

number of satisfied customers.

™ MTR has a good networking and distribution system. The products are available

from supermarkets to next to door kirana shops. They are supplied to the stores on

a weekly basis to ensure the product freshness and quality.

Inspite of the positive finding there are some short comings in the products like the taste

of the products is not upto the mark in case of North Indian dishes and soups. The food

has taste of chemicals present in it. Due to the potential growth opportunities in the

instant food segment, many big plays are entering. This may affect the monopolistic

position of MTR. Hence MTR should work on their promotional strategies. They should

add news markets globally and make MTR a global brand. More innovation needs to be

brought nto the products and packaging needs to be made more attractive.

MTR is a strong brand and is bound to become an global brand due to its relationship

with large number of loyal customers all across the global.

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1.1 INDUSTRY PROFILE

The Indian food market, according to the 'India Food Report 2008' by Research and

Markets is estimated at over US$ 182 billion, and accounts for about two thirds of the

total Indian retail market. Further, according to consultancy firm McKinsey & Co.,

the retail food sector in India is likely to grow from around US$ 70 billion in 2008 to

US$ 150 billion by 2025, accounting for a large chunk of the world food industry, which

would grow to US$ 400 billion from US$ 175 billion by 2025.

The growth of the food industry in India stems from the consistently increasing

agricultural output. With the second largest arable and area in the world, India is one of

the key food producing countries in the world, second only to China.

In fact, the year 2008 has been a record year for India’s food grain sector with increased

production, acreage under cultivation and record procurements.

Further, according to an Economic Times analysis, one out of every five listed companies

in India confirmed higher profits during the first half of fiscal 2008–09, with farm inputs

and farm machinery companies achieving the biggest profits.

According to Mr Subodh Kant Sahai, the Union Minister of State for MFPI, the food

processing industry in India was seeing growth even as the world was facing economic

recession. According to the minister, the industry is presently growing at 14 per cent

against 6–7 per cent growth in 2003–04. Foreign direct investments (FDI) totaling US$

143.80 million was put into the food processing industry in 2007–08 against US$ 5.70

million in the previous fiscal.

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Advantage India

™ India is the largest producer of milk in the world, and is likely to become the

second largest dairy products producer in the coming years.

™ It is the second largest producer of fruits and vegetables.

™ It is home to the largest number of livestock in the world.

™ It is the third largest producer food grains.

™ It has the third largest output of fish.

™ With above 9500 spices from medicinal and aromatic plants, India is truly a

treasure trove of spices, accounting for 25-30 per cent of the world’s production.

India is the largest producer consumer and exporter of spices, with major spices

produced being black pepper, cardamom (small & large), ginger, garlic, turmeric,

chilly etc.

Food Processing

The food processing industry provides crucial connections between industry and

agriculture. To aid the growth of the food processing industry, the government has

implemented schemes including the setting up food parks, packaging centres, integrated

cold chain facilities, value-added centres, and modern abattoirs.

‘Vision 2015’ undertaken by the Ministry of Food Processing Industries entails:

™ Three-fold growth in the size of the processed food sector.

™ Increasing level of processing of perishables from 6 per cent to 20 per cent.

™ Value addition to be raised from 20 per cent to 35 per cent.

™ Share in global food trade to go up from 1.5 per cent to 3 per cent.

Despite India having a huge agricultural production base, its share in exports of processed

food in global trade is only 1.5 per cent; whereas the size of the global processed-food

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market is estimated at US$ 3.2 trillion and nearly 80 per cent of agricultural products in

the developed countries get processed and packaged.

Consequently, there is a tremendous potential for export-led growth and investment in

this sector.

Snacks and Confectionery

The Indian market holds enormous growth potential for snack food, which is estimated to

be a market worth US$ 3 billion. The market is clearly and equally divided into the

organized and unorganized sector. The organized sector of the snack food market is

growing at 15-20 per cent a year while the growth rate of the US$ 1.56 billion

unorganized sector is 7-8 per cent.

BMI has predicted a 22 per cent growth in value terms in India's confectionery market till

2012.

Dairy and Probiotics

According to Dairy India 2007 estimates, the current size of the Indian dairy sector is

US$ 62.67 billion and has been growing at a rate of 5 per cent a year. Both production

and consumption of milk and its derivatives are traditionally high in the country. The

dairy exports in 2007–08 rose to US$ 210.5 million against US$ 113.57 million in the

corresponding period, in the last fiscal, whereas the domestic dairy sector is slated to

cross US$ 108 billion in revenues by 2011.

Probiotic dairy products, which contain live organisms, build immunity and help in

digestion, is an emerging category in the Indian food market. Along with domestic dairy

majors like, Amul and Mother Dairy, global players like Nestle have made significant

investments to capitalize the potential of the segment. The latest entrant is Yakult

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Danone with its investment worth US$ 28.3 million and an additional US$ 20.8 million

on the cards for the next 2–3 years.

According to the latest report on’ Indian Functional Foods and Beverage markets' by

Frost & Sullivan, the market of nutraceuticals and probiotics earned revenues of over

US$ 185 million in 2007 and is projected to touch an estimated US$ 1,161 million in

2012. Although the segment in its nascent stage currently, it is poised for an upswing. A

healthy domestic economy and awareness of health products are expected to give a boost

to the segment.

Beverages

According to industry experts, the market for carbonated drinks in India is worth US$ 1.5

billion while the juice and juice-based drinks market accounts for US$ 0.25 billion.

Growing at a rate of 25 per cent, the fruit-drinks category is one of the fastest growing in

the beverages market. Sports and energy drinks, which currently have a low penetration

in the Indian market, have sufficient potential to grow. They are considered a socially-

acceptable alternative to alcoholic beverages.

Beverages major Coca-Cola India is readying an extensive roll-out of products for this

year. It will roll off in February, 2009 a fortified low-priced powder drink Vitingo (an

orange-flavoured beverage powder with micronutrients), followed by a phased launch of

global energy drink Burn in the next quarter and its third lime-based drink, besides the

existing Sprite and Limca brands either under Coca-Cola’s juice franchise brand Minute

Maid or aerated drink Fanta also later in the year. According to industry officials, the

market for packaged nimbu pani in India, almost entirely unorganized till now, promises

higher growth potential than most packaged drinks.

The market for alcoholic beverages has been growing consistently. 'The Future of Wine',

a report on the state of the wine industry over 50 years, prepared by Berry Bros & Rudd,

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one of the oldest, independent wine merchants in Britain, suggests that the market for

wine in India was growing at over 25 per cent per year.

Approaching the milestone of one million cases a year, the Indian wine market has also

recorded an impressive growth rate. An impressive 59.84 per cent growth of wine

production (21.1 million liters in FY 2007-08 from 132 million liters in FY 2006-07) in

Maharashtra bears testimony to the fact. Global wine majors have already set up shop in

India to tap the vast potential. Out of the total consumption of grape wine in India, around

80 per cent wine consumption is from the major cities.

Marine Food

India with its considerably long coastal lines enjoys a natural advantage in the marine

food sector. According to the estimates by Marine Products Export Development

Authority (MPEDA), Indian seafood exports rose to US$ 1.55 billion during 2007–08.

Frozen shrimp accounted for 52 per cent of total marine exports at US$ 980 million

followed by frozen fish at US$ 326 million.

Poultry and Processed Meat

The country's poultry market is expected to grow at 12–15 per cent per annum. At the

same time, fuelled by a booming retail sector, the market for processed meat is also

growing at an estimated 1520 per cent per annum. Favourable conditions such as rising

incomes and a young and urban population have fuelled increasing domestic demand.

The rapidly growing sector offered investment opportunities for foreign players in

activities such as breeding, animal health, feed, equipment, processing and retail

distribution.

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Retail Landscape: Food Chains and Restaurants

The food and grocery market in India is the sixth largest in the world. Food and grocery

retail contributes to 70 per cent of the total retail sales.

According to industry estimates, the segment is growing at a rate of 104 per cent and is

expected to grow to US$ 482 billion by 2020.

According to a BMI forecast, India is likely to see a huge 443 per cent increase in mass

grocery retail (MGR) sales during the 2007–2012 period. The sector has recently

attracted UK retail giant Tesco, which plans a partnership with the Tata Group.

Ninety nine per cent of this segment is unorganized, and therefore, there is immense

scope for growth for the organized sector. The organized food retail sector is largely

dominated by restaurants, fast food outlets, coffee joints and the like.

™ With the increasing competition in large cities, dining chains and restaurants like

Pizza Hut, Domino’s, Nirula’s and KFC are now bullish on setting up their stores

in smaller cities and tier-II and III markets.

™ Global fast food chain, Domino's Pizza is present in 45 Indian cities with 207

outlets and is eyeing penetration into Tier-II and Tier-III cities with a plan to add

another 300 outlets by the end of 2011. The chain holds 42 per cent share of the

approximately US$ 113 million organized pizza market.

™ Another fast food chain, McDonald's, has 160 franchised restaurants all over

India. With an aim to clock 30–35 per cent growth per annum, it is looking to

open 60 more outlets in the next three years.

™ In the coffee retail segment, Cafe Coffee Day, the largest coffee bar chain in

India, plans to grow from the present level of 590 cafes to 900 by the end of 2009.

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™ Popular Italian brand for ice creams, desserts and other food items, "Italicks", has

entered the Indian market. The traditional Italian food items brand has launched

its first outlet in Pune and will soon be present across India.

™ UK-based Wimpy International Ltd said it has clocked a 50 per cent increase in

its sales within a month.™ Dodsal Corporation operates 62 Pizza Hut and KFC outlets spread across 11 cities

in India.

™ With out-of-home-consumption of coffee growing at 12–13 per cent, the Indian

conglomerate, The Tata Group, is planning to step in to the business, by setting up

a café chain across the country.

™ Hyderabad-based Heritage Foods India Private Limited (HFIPL) is planning to set

up about 75 Fresh@Stores, its grocery retail chain, in Hyderabad, Chennai and

Bangalore.

The food retail market is going to receive a further boost with the proposed mega

food parks. These, with complete backward and forward linkages with common

processing facilities, are expected to create an integrated value chain from the

farm gate to the consumer.

Major investments

Private investment has been one of the key drivers for growth of the Indian food industry.

The 'India Food Report 2008', reveals that the total amount of investments in the food

processing sector in the pipeline for the next three years is about US$ 23 billion.

™ The government has received around 40 expressions of interest (EoI) for

the setting up of 10 mega food parks (MFPs) with an investment of US$ 514.37

million.

™ In August 2008, the first chocolate academy in India was opened by Swiss

confectioner Barry Callebaut, making its fifth foray into the Asia market.

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™ South Korean confectionery giant, Lotte Group, also has plans to set up a

subsidiary in India.

™ Belgian brewing giant, InBev, has announced increased expansion in India, with a

focus on the beer market. Through its recent acquisition of US brewing giant

Anheuser-Busch (A-B), the company now also owns A-B's Indian subsidiary,

Crown Beers India. Consequently, A-B's popular Budweiser brand is likely to

soon hit affluent Indian markets.

™ Italian confectionery company, Ferrero SpA, has announced plans to invest US$

35 million for setting up a mint manufacturing plant in Maharashtra.

™ Conglomerate Reliance Industries Ltd has invested US$ 1.25 billion in a dairy

project. In August 2008, Reliance Industries was reported to be mulling a

partnership with UK-based supply chain solutions provider, Wincanton, for its

efforts focussed on India’s mass grocery retail (MGR) sector.

™ According to Business Monitor’s Q108 India Food & Drink Report, dairy major

and ice cream specialist, Amul Dairy, has announced plans to enter India's US$

500 million snack food market.

™ Future Group and its private equity arm, Indivision India Partners, have

acquired a controlling 50 per cent plus equity stake in the multi-cuisine

lifestyle restaurants’ chain, Blue Foods. Blue Foods's flagship brands include

Noodle Bar, Gelato Italiano, Spaghetti Kitchen, Copper Chimney, Bombay

Blue, Cream Centre and a franchisee agreement with the California-based coffee

chain, Coffee Beans & Tea Leaf.

™ Texas Chicken, the chicken fast-food brand of the US-based Church's Chicken,

has already opened its first outlet in Hyderabad and plans to open at least 300

outlets in India over the next 10 years.

™ The world's third largest pizza chain, Papa John's, plans to open 100 outlets in

different parts of the country with an investment of US$ 51 million.

™ Fast-food chain McDonald’s is pumping in US$ 83.4 million on increasing its

footprint in India.

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™ On the domestic front, RJ Corp-owned Devyani Food Industries has acquired 100

per cent stake in ice-cream venture Cream Bell, valued at approximately US$ 92

million.

™ ITC is planning to set up a world-class processing infrastructure in Rajasthan for

an integrated 'cleaning-cum-sorting' facility for spices like cumin, coriander and

pepper. Moreover, ITC is also planning investments to automate the different

operations in its supply chain. It is planning to set up a pepper garbling and steam-

washing facility in Kerala, apart from a 'blended spices' facility over the next two

years.

™ Sapat International, a Mumbai-based tea company, is reportedly in talks with

EPIC, a private equity firm in the UK, for the acquisition of its stake in Whittard,

an upmarket tea and coffee retailer in the UK.

™ Cafe Coffee Day is planning an investment of US$ 24.68 million - US$ 30.86

million for expanding its number of cafes to around 1,000 from the current 700,

over 2009.

™ France-based Belvedere Group, which is the world’s second-largest vodka

producer, is planning to enter India via the travel retail channel.

Government Initiatives

The new trade policy places increased focus on agro-based industries.

™ Food processing industries have been put in the list of priority sectors for

bank lending.

™ Fruit and vegetable processing units have been completely exempted from

paying excise duty.

™ Automatic approval for foreign equity upto 100 per cent is permitted for most of

the processed food items.

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™ Items like fruits and vegetables products, condensed milk, ice cream, meat

production, fist/poultry, pectins, pasta, and dairy machineries have been

completely exempted from Central Excise Duty.

™ Excise duty on ready to eat packaged foods and instant food mixes have been

brought down to 8 per cent from 16 per cent ;

™ Excise duty on aerated drinks has been reduced to 16 per cent from 24 per cent.

™ National bank for agriculture and rural development (NABARD) has set up a

refinancing window with a corpus of US$ 204.92 million for agro processing

infrastructure and market development.

Furthermore, Agriculture and Processed Food Products Export Development Authority

(APEDA) has been making efforts to encourage export of agricultural and processed food

products.

™ APEDA has set up centres and other infrastructural facilities for perishable

cargo at various International Airports.

™ Set up and upgraded testing laboratories export of fruits & vegetables.

™ Set up Agri-export zones for fruits and vegetables.

™ Participation and organization of international trade fairs and promotional

campaigns.

™ Provided financial assistance to its registered exporters.

Looking ahead

A report by the US Department of Agriculture, citing a study by McKinsey & Company,

suggests that the Indian food market is set to more than double by 2025. The market size

for the food consumption category in India is expected to grow from US$ 155 billion in

2005 to US$ 344 billion in 2025 at a compound annual growth rate (CAGR) of 4.1 per

cent.

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The government has undertaken major initiatives to give a push to the industry. It has

decided to set up 30 greenfield mega food parks (MFP) during the Eleventh Plan, with

each park receiving an investment of US$ 51.39 million. In the first phase, he said the

MFPs would be established in ten states. Each project will be spread over about 50–100

acres, and will have around 30-35 food processing units. It is expected that each project

would yield an annual turnover of about US$ 92.53 million-US$ 102.78 million and

generate around 40,000 direct and indirect jobs. Work on 10 MFPs would commence in

the current financial year.

The MFP scheme has been set up to increase processing of perishables from the present 6

per cent to 20 per cent. Further, the scheme targets value addition of food items from 20

per cent to 35 per cent and increasing India’s share in global trade from 1.5 per cent to 3

per cent by the year 2015.

Furthermore, according to the India Food and Drink Report Q3 2008 by research analysis

firm Research and market, by 2012, India’s processed food output is likely to grow by

44.2 per cent to touch US$ 90.1 billion, while packaged food sales will increase by 67.5

per cent to reach US$ 21.7 billion. On a per capita basis, per capita packaged food

spending is expected to grow by 56.5 per cent to US$ 18.06 by 2012.

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1.2 COMPANY PROFIL

HERITAGE OF MTR

MTR has a rich heritage. Their tradition of food and hospitality began in 1924 with the

establishment of the Mavalli Tiffin Room by

the Maiyya family in Bangalore, India. This

restaurant is a city landmark today and

people still stand in queue to savour its

unique, completely authentic dishes. Over

the years, they have played proud host to

many distinguished personalities who

dropped by for the excellent coffee and the

stimulating conversation.

Culinary secrets have been protected and

handed down over the generations and the

food is based on truly authentic recipes from

their region of origin. MTR’s journey to

India’s premier, processed food company has been marked by innovation and the

adoption of new technology. However, every MTR product will always embody the

tradition of unmatched taste, purity and quality

MTR Foods Limited is amongst the top five processed food manufacturers in India. They

manufacture, market and export a wide range of packaged foods to global markets that

include USA, UK, Australia, New Zealand, Malaysia, Singapore, UAE and Oman.

Starting with the legendary MTR restaurant in Bangalore, India’s Silicon Valley, MTR

now offer ''complete meal solutions. Their wide range of products include ready-to-eat

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curries and rice, ready-to-cook gravies, frozen foods, ice cream, instant snack and dessert

mixes, spices and a variety of accompaniments like pickles and papads.

MTR’s deep understanding of culinary expectations and needs has resulted in many new

and innovative products. Their investment in infrastructure and technology ensures that

they scale rapidly and bring these to market. Today, consumers across the globe count on

MTR to bring them all-natural, wholesome and delicious food that is also convenient and

no-fuss.

MTR has also expanded our retail presence significantly: contemporary 'Namma MTR'

and MTR kiosks now serve delighted consumers across Bangalore and Chennai.

NAMMA MTR

Namma MTR is a unique retail chain that allows customers to experience the wide MTR

range. Namma MTR is split into three sections. One section showcases the entire range of

products. The second section is a novel concept kitchen where customers can interact

with specialist chefs to learn about MTR products and watch live demonstrations. This

concept kitchen also works as an ideal platform for feedback, allowing them to

understand and address consumer needs. The third section offers a variety of fast-food —

you can either eat here or get a quick take-away from the express counter.

True to MTR tradition, the food is pure,

delicious and convenient. The menu offers

anytime snacks, hearty meal combinations

and ice-creams at truly, value-for-money

prices. The smart, contemporary ambiance

and excellent service make for a

completely international experience.

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FOOD SERVICES

MTR also provides food services in food

courts. They can be set up with minimum

investment. . All you need to set up in the

food court is a microwave oven, fryer and a

freezer.

MTR’s amazing range of convenience

products, Frozen Foods and Ready to Eat

dishes are made with cutting-edge technology

from theDefense Research Laboratory,

Mysore. This ensures the quality of the

products.

INSTITUTIONAL SALES

MTR is a one-stop, efficient and reliable supplier to

reputed hotels, restaurants, institutions and caterers.

The wide range of products supplied includes

spices, masalas, instant mixes, vermicelli and

accompaniments.

Each of these products comes with the MTR

assurance of purity and quality. Convenient delivery

formats like instant mixes allow consumers to whip

up a wide range of dishes in short amounts of time,

regardless of how vast the scale of operation is.

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EXPORTS

MTR exports their wide range of products to countries like US, Canada, UK, Germany,

Middle East, Sri Lanka, Singapore, Japan, Australia and New Zealand.

QUALITY POLICY

MTR is ISO 22000 and HACCP certified company. At MTR, quality is a way of life.

Hazard Analysis and Critical Control Point or HACCP, developed by the Codex

Alimentarius Commission, is a global

food safety standard. MTR has

successfully met the stringent

requirements for this certification.

Their facilities are equipped with the

latest systems. We adhere to

international standards across all

operations: from sourcing the finest

ingredients to processing and packing

using cutting-edge technology. Each MTR product carries this assurance of quality and

meets the high expectations our consumers have from us.

FOOD SAFETY POLICY

At MTR foods limited are committed to manufacture and market food products of high

quality, hygienically processed using state-of-the- art technology with the following

objectives.

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™ Creation of MTR brand synonymous with quality and food safety.

™ Continuous improvement by total committed participation of all.

™ Satisfy the changing needs of customers for total delight and meeting the

regulatory and statutory requirement.

™ Increase the performance level of our suppliers.

™ Continually improve the effectiveness of quality and food safety management

system

WHAT MAKES MTR A TRUSTED HOUSEHOLD NAME

™ Hundred percent Natura l :

MTR products are hundred percent natural have no preservatives and use only the

finest, most authentic ingredients.

™ Unparalleled taste and flavo r :

Be it an Instant mix or a Ready to Eat dish, pickles or soups, all MTR products

are known for their mouthwatering, "home-cooked" taste.

™ Unco mpro mising Quality:

MTR adhere to the most stringent quality standards, from sourcing ingredients to

processing and packing. We are ISO 22000 and HACCP certified.

™ Technolog y :

MTR use the latest technology to preserve the quality and freshness of our food.

Our use of technology from the Defense Food Research Laboratory for our Ready

to Eat products has won us the President's award.

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™ Vegetarianism:

All MTR products are hundred percent vegetarian

MILESTONES

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1.3 PRODUCT PROFILE

SOUPS

MTR range of soups is heartwarming, healthy and 100% natural. Carefully picked

ingredients are made into a soup concentrate. This is packed through a special process

that ensures the soup retains its mouthwatering aroma and natural flavor. They are

available in the following flavors:

i) Babycorn And Spring Onion - A creamy blend of

exotic baby corn and fresh spring onions.

ii) Mixed vegetable soup - A healthy mix of

vegetables in an Italian style soup

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iii) Mulligatawny Soup – A tangy, peppery, lentil-based

soup

iv) Spicy Tomato Soup – A deliciously spicy, tomato soup

v) Simply Tomato –A rich tomato soup, the all-time

favourite

vi) Spinach And Carrots – A healthy, wholesome combination

of spinach and carrots

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READY TO EAT

MTR Ready to Eat dishes are an amazing combination of convenience, taste and variety.

They're 100% natural and have absolutely no preservatives. Their range currently

comprises twenty-two delicious and completely authentic Indian curries, gravies and

rice.MTR has successfully adapted technology from the Defense Food Research

Laboratory, Mysore to make sure each dish has that "just-cooked" freshness. The product profile

of MTR is shown below:

i. Avial - Mixed vegetables cooked in a hearty coconut sauce, a

traditional delight from Kerala.

ii. Kesari Bhath - Cream of wheat cooked with nuts

and flavoured with saffron to make a divine dessert

iii.

iv. Khara Bhath - Cream of wheat cooked with vegetables and

aromatic Indian spices to make a delicious, light savoury.

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T E O F M A N A G E M E N T

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M . P . B

iii.

I R L A I N S T I T U

v. Pongal - A delectable combination of lentils and rice,

seasoned with peppercorns and other spices.

vi. Bisibele Bhath - A wholesome combination of rice, lentils,

vegetables and spices, a complete meal in itself.

vii. Pineapple SS Curry- Juicy chunks of pineapple in a

perfectly balanced sweet and sour curry.

ix. Alu Mutar - Baby potatoes and green peas in a delectable

curry.

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M . P .

xiii.

B I R L A I N S T I T

x. Chana Masala - Wholesome chick peas cooked in a tangy, piquant sauce.

xi. Dal Fry - Yellow lentils seasoned with aromatic spices, an

integral part of every Indian meal.

xii. Dal Makhani - Black lentils simmered with butter in

true Mughlai tradition.

xiv. Navratan Kurma - Vegetables and dried fruit cooked in a

rich, creamy gravy – a dish fit for kings!

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M . P .

xv. Paneer Butter Masala - Tender chunks of cottage cheese cooked in a rich butter

sauce.

xvi. Paneer M a khani - Tender chunks of cottage cheese cooked

in a rich tomato gravy.

xvii. Bhindi Masala - Ladies finger cooked with just the

right blend of spices.

xviii. Mix Veg. C urry - The goodness of vegetables in a

delicious, satisfying curry.

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M . P

. B I R L A I N S T I T

xix. Palak Paneer - A delectable combination of tender chunks of cottage cheese and

fresh green spinach.

xx. Peas and Mushroom - Fresh green peas and button

mushrooms in a delightful gravy.

xxi. Rajma Masala - Red kidney beans in a hearty sauce,

the all-time North Indian favourite.

xxii. Veg. Pulao - A delicious, wholesome medley of rice,

vegetables and spices.

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xxiii. Gobi Manchurian - The goodness of gobi in a delicious, satisfying Chinese

sauce.

xxiv. Pav Bhaji - A rich combination of potatoes and vegetables

cooked in the popular Mumbai style.

FROZEN FOOD

MTR’s wide range of frozen foods offers stand alone dishes and delicious combos.

Because they are processed and packed with cutting-edge technology, these convenient

foods retain all their nutritive value and taste. They are broadly categorized into Main

Dishes, Combo Meals, Snacks and Parathas.

Dishes available under Main Dishes are:

i. Palak Paneer - A delectable combination of

tender chunks of cottage cheese and fresh, green

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spinach.

ii. Channa Masala - Wholesome chick

peas cooked in a tangy, piquant sauce.

iii. Alu Mutter - Baby potatoes and green peas in a

delectable curry.

iv. Mix Veg. Curry - The goodness of

vegetables in a delicious, satisfying

curry.

v. Alu Bhaji - Baby potatoes and green peas in a

delectable curry.

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vi. Tadka Dal - Yellow lentils seasoned

with aromatic spices, an integral part of

every Indian meal.

Dishes available under Combo Meals are:

i. Masala Dosa + Alu Curry - Crisp, golden dosa

accompanied by potato curry. An all-time favourite snack.

ii. Rava Idli + Potato Sagu - Wholesome semolina

idlis combined with a delicious potato dish. Perfect

for a hearty breakfast or snack.

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M . P . B I R L A I N S T I T U T E O F M A N A G E M E N T

iii. Punjabi Chole + Paratha - Whole-wheat parathas with delectably flavoured,

chick pea gravy.

iv. Palak Paneer + Paratha - Tender chunks of

cottage cheese in a mild spinach gravy

Accompanied by whole-wheat parathas.

v. Alu Bhaji + Paratha - Potatoes cooked with aromatic

spices and accompanied by soft, fresh parathas.

Dishes available under Snacks are:

i. Samosa - Crisp, golden samosas stuffed with

potatoes.

ii. Vada - Crisply fried golden rice rings.

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Dishes available under Paratha are:

iii. Rice Idli - Light, fluffy steamed rice cakes.

i. Ajowan Paratha - Delicious, golden-brown parathas

delicately flavoured with 'ajowan' (a thyme like Indian

spice).

ii. Alu Paratha - Delicious, whole wheat parathas

stuffed with a hearty potato mix.

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iii. Lachha Paratha - Flaky, multi-layered golden-brown parathas made from whole

wheat.

iv. Plain Paratha - Delicious, golden-brown parathas

made from whole wheat. A great accompaniment

to any meal.

v. Nawabi Paratha - Rich whole-wheat parathas flavoured

with cashewnuts and saffron.

RICE MEALS

vi. Methi Mutter Paratha - Unusual and delicious

parathas flavoured with fenugreek and stuffed with

green peas.

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M . P .

B I R L A I N S T I T

MTR Rice Meals are the perfect way to enjoy 'home' food anytime and anywhere. Not

only are they affordable, they're also extremely easy to make. Just dip the pouch in

boiling water or pop it in a microwave for a satisfying, wholesome and delicious

experience.

They are Available in a variety of exciting combinations as follows:

i. Diet Delite - Whole wheat and lentils cooked together with

aromatics spices: low on fat, high on fiber and taste. Truly a

dieter's delight.

ii. Jeera Rice - Rice subtly flavoured with delightful

taste and aroma of cumin.

iii. Lemon Rice - A delectable, subtly flavoured mix of lemon

and rice.

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viii.

B I R L A I N S T I T U T E O F M A N A G E M E N T

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M . P .

iv. Masala Rice - Rice flavoured with a bouquet of aromatic spices and enriched

with mix of vegetables

v.

vi. Rajma Chawal - A hearty combination of red kidney beans

and rice- the most popular dish in Punjab.

vii. Rasam Rice - Tongue-tickling pepper and tomato

soup with rice.

ix. Sambar Rice - Lentil and vegetable curry with rice, the all-

time favourite from South India.

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ii.

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x. Tamarind Rice - Rice combined with the tangy, mouthwatering flavour of

tamarind.

xi.

xii. Tomato Rice - A delicious, wholesome combination of rice

and tangy tomato.

INSTANT SWEET MIX

MTR Instant Sweet Mixes are a delightful and easy way to make the most mouthwatering

delicacies at home. Whether it is a special occasion or just a regular meal, follow the

simple step-by-step instructions on the pack and sweeten your family's day!

i. Gulab Jamun - Soft, sinfully delicious gulab

jamuns.

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M . P .

B I R L A I N S T I T U T

iii. Badam Feast - Use this to make different Badam delicacies in minutes. It can be

used to prepare Badam drink either a hot drink during winters or a cold drink

during summers and Badam Halwa for special occasions.

iv. Vermicelli Payasam - The traditional payasam

or kheer made easy.

INSTANT SNACKS MIXES

MTR range of instant mixes is the result of years of culinary expertise. They are

subjected to the most rigorous quality procedures to ensure that consumers get deliciously

consistent results every time you use them.

Just follow the simple step-by-step instructions on the pack — there's no simpler way to

rustle up such a wide variety of delicious and wholesome Indian snacks.

i. Muruku - The popular, crunchy golden-brown snack. It’s

easy to make and good to eat.

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ii. Rice Dosa - No grinding, no fuss. Crisp golden dosas are now so easy to make.

iii. Masala Upma - This wholesome savoury with cream-

of-wheat and vegetables is nutritious and delicious.

iv. Rava Dosa - Dosas made with cream of wheat:

distinctive and delicious.

v.

vi. Upma - With its combination of sooji and spices,

delicious and wholesome upma is a universal favourite.

Now make it in a few easy steps.

VERMICELLI

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MTR vermicelli is made with a

special process that ensures it is non-

sticky and does not form lumps.

Choose from short cut, long cut or

roasted vermicelli. You can use MTR

vermicelli in so many marvelous

ways! Make creamy sweet kheer,

savoury Upma or toss it with boiled

vegetables for a wholesome Pulao.

PAPADS

PICKLES

MTR Papads use only the finest ingredients.

They are packed using unique technology

that ensures they stay crunchy, crispy fresh.

They come in a variety of different flavours

like Punjabi Masala, Plain and Masala. Enjoy

them as a snack or as an accompaniment to

any meal.

MTR Pickles are made with traditional recipes

handed down through generations of the

company's founding family. Carefully selected

fruits and vegetables are pickled with the finest

oils and spices under the most hygenic

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conditions. Choose from a variety of different types and add zest to every meal.

ICE CREAMS

MTR Ice Creams are known for their delicious

creamy taste, innovative flavours and value-for-

money prices. Available at kiosks, stores and

Namma MTRs, they are a long-standing

favourite with all age-groups.

SPICE POWDERS

MTR spice powders are made under the most hygienic

conditions in modern factories still use a traditional

technique. They pound the finest whole spices slowly

and patiently. Unlike the quicker and more common

grinding, this ensures that the full-bodied flavour and

aroma of the spice is retained.MTR manufactures

Turmeric, Coriander, Black pepper, Chilly and Jeera

powders.

BEVERAGES

MTR manufactures some of the traditional drinks like Aamras, Badam drink, Chocolate

Drink, Health Drink, Herbal Drink and Thandai.

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MASALA POWDERS

MTR’s wide range of Masala powders is made with traditional techniques to ensure they

retain their purity, freshness and flavour. Use them to whip up a

variety of completely authentic dishes with minimum fuss and

time.

At MTR they have stringent quality checks at every stage of

sourcing and production to ensure only finest products reach the

consumers. From individual families to hotels and institutions

MTR Masala powders are trusted by consumers all over the

globe.MTR produces the finest Masala powders like Instant S a m bar Mix, Pulao etc.

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LITERATURE REVIEW

CONSUMER ATTITUDE TOWARDS BUSINESS MAGAZINES

It is heartening to note that despite the wide proportion of information communication

technology and the electronic media as sources of information and knowledge, the print

media continues to remain the preferred channel for specialized and detailed information

on number of topics. In fact, a recent study brought out that many respondents were

motivated to read a magazine after seeing an article on the Internet. Business magazines

in India have a distinct role to play in informing readers about the latest trends in areas

like the economy, stock market, marketing and corporate matters. The present paper

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seeks to study the attitude of consumers towards these magazines. It has been found that

readers are more influenced by credibility and authenticity of coverage than by

promotional offers. The magazines more popular among English knowing readers since

the leading business magazines are in that language.

-- Manish Srivastava

The ICFAI University Press.

THE HIDDEN PERSUADERS

In The Hidden Persuaders, first Packard explores the use of consumer motivational

research and other psychological techniques, including depth psychology and subliminal

tactics, by advertisers to manipulate expectations and induce desire for products,

particularly in the American postwar era. It also explores the manipulative techniques of

promoting politicians to the electorate. The book questions the morality of using these

techniques.

The Hidden Persuaders

Vance Packard

published in 1957.

MOOD STATES AND CONSUMER BEHAVIOR: A CRITICAL REVIEW

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A conceptual framework is presented that depicts both the mediating role of mood states

and their potential importance in consumer behavior. Reviewing findings from the

psychological literature indicates that mood states have direct and indirect effects on

behavior, evaluation, and recall. The scope and limitations of these effects are addressed,

and the implications for consumer behavior in three areas-service en-counters, point-of-

purchase stimuli, and communications (context and content) - are examined. Finally, the

potential feasibility and viability of mood-related approaches to marketing research and

practice are discussed.

The Journal of Consumer Research

Vol. 12, No.3 (Dec 1985), pp281-300

Published by – The University of

Chicago Press

CONSUMER ACCEPTANCE OF FOOD INNOVATIONS.

An innovation's success is dependent upon successfully responding to consumer needs

and communicating benefits in a believable persuasive manner. Consumers respond to

good taste, convenience, and health enhancing properties. The magnitude of any risk the

innovation or technology imposes including impact on the environment is also of

concern. While people rely on mass media and advertisement their communication

network is complex and the opinion of family and friends is a powerful influence. Public

acceptance is influenced by perceived credibility of data, rigour of regulatory policy,

impartial action of regulators, and demonstrated responsibility of industry.

Editorial: By: Bruhn, Christine M.

Publication: Innovation: Management, Policy, & Practice

Date: Tuesday, July 1 2008

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CONSUMER BEHAVIOUR AND MARKETING ACTION

Consumer behavior is comparatively a new field of study which evolved just after the

Second World War. The seller’s market has disappeared and buyers market has come up.

This led to paradigm shift of the manufacturer’s attention from product to consumer and

specially focused on the consumer behavior. The evaluation of marketing concept from

mere selling concept to consumer oriented marketing has resulted in buyer behavior

becoming an independent discipline. The growth of consumerism and consumer

legislation emphasizes the importance that is given to the consumer. Consumer behavior

is a study of how individuals make decision to spend their available resources (time,

money and effort) or consumption related aspects (What they buy? When they buy? How

They buy? etc.).

The heterogeneity among people makes understanding consumer behaviour a challenging

task to marketers. Hence marketers felt the need to obtain an in-depth knowledge of

consumers buying behaviour. Finally this knowledge acted as an imperative tool in the

hands of marketers to forecast the future buying behavior of customers and devise four

marketing strategies in order to create long term customer relationship.

Mr. Henry Babu

Sr. Lecturer

Bharthi Vidhyapeeth Inst. Of Management Studies & Research,

FOOD PROCESSING INDUSTRYIN INDIA

Food is strategic to India’s economy, its GDP (of which agriculture constitutes one-third)

and its 950 million people. The importance of the food processing industry can be gauged

from the fact that it ranks fifth in size in the country and employs an estimated 16 lakh

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workers – a fifth of the country’s industrial labour force – and accounts for 14 % of the

total industrial output and 18 % of GDP. For the healthy development of this important

economic activity, several key issues that influence the industry need to be addressed

comprehensively; not the least important of which are the harmonization of food

legislation and taxation of food. The value loss in food chain can be significantly reduced

by processors going in for backward linkages. This will not only help enhance farm

productivity, but also minimize wastage and reduce the non-value-adding role of

intermediaries.

Although India is the world’s third largest food producer, after China and US

respectively, the combined turnover of its ten largest food companies is only $ 2 billion.

Thus, in a country of one billion people, it seems that the size of the potential food

market might have been overestimated. The truth is that the markets for the products on

which India’s food companies have concentrated – higher value-added items such as

breakfast cereals, jams, and sauces – are indeed small because these products are aimed at

an elite. The big, and so far largely untapped, opportunity lies with the mass-market

products – packaged atta, biscuits, poultry, and liquid mild – which could eventually

account for more than 80 % of the total market. The growth in consumption for value-

added foods will treble from $ 21.4 billion today to $ 62.5 billion.

VINIL PATEL

Research project

Narsee Monjee Institute of Management Studies, Mumbai.

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CONSUMER BEHAVIOR- PERCEPTION AND INFORMATION

PROCESSING

Perception is the process through which a person forms an opinion about the various

stimuli he receives from his sensory organs. In marketing, perception is concerned with

understanding how the consumer views a product or service. The five senses of a person

help him in this process. The marketer uses various props to stimulate the consumer, that

is, through the use of colors, sound, touch, taste, or smell, to observe the product.

The marketer must distinguish his message from the competitor’s message. This is when

Just Noticeable difference (JND) comes to their aid. JND is the minimum difference that

the consumer can detect between two stimuli he receives. It helps the consumer to

distinguish changes in prices among purchase alternatives. Marketers thus use stimuli to

grab customers’ attention and most often these efforts are clearly visible and known to

the customer however, they sometimes use indiscernible stimuli that are just below a

consumer’s threshold so as to influence him. This is called subliminal message. Of all the

stimuli a consumer comes into contact with, he pays attention to only a few and interprets

the messages that he remembers. This is called the process of perception and has the three

steps: 1) exposure, 2) attention, and 3) interpretation.

How well the consumer pays attention will depend on the stimulus, and also the

consumer’s interest and need for that product. The consumer interprets the information in

two ways: 1) the literal meaning or the semantic meaning and 2) the psychological

meaning. Hence we are guided by our learning as well as the semantic meaning of a

word. A consumer also interprets the symbols and other physical features of the product

on the basis of his experience and cultural beliefs. This is called semiotics.

Consumer Behavior Textbook

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Chapter no.5, pg no. 15

Published by: ICMR

FOOD SAFETY RISK: CONSUMER PERCEPTION AND

PURCHASE BEHAVIOUR

Food safety has become a major issue of public concern, encouraging the UK

Government and the food industry to take steps to rebuild consumer confidence. In this

context, the paper draws on a review of research literature to develop a conceptual

framework to identify and review the factors influencing consumer perception of food

safety related risks and the likely impact on purchasing behaviour. The relevance of

strategies adopted by consumers to reduce risk exposure and the influence on the

likelihood of food purchase are also explored, together with the implication for the food

industry.

Ruth M.W. Yeung, Joe Morris

British food journal

Vol:103, pg 170-187

COMSUMER AS THE KING !

A key trend in the children’s product category, especially consumables, was an effort to

have dual layers of positioning and brand messages. One layer, the fun and palate for the

children who were key consumers and the second key layer that catered to the mothers’

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needs and fears regarding child nourishment. We saw multiple product categories cater to

this trend. From health beverages which strengthened their already existing balance

between nourishment and taste, to biscuits and other instant snacks being new entrants to

this balancing game.

The author is director, Synovate India

The Financial Express

Dec 29, 2008.

GARMENTS, EATABLES… ALL IN AN INSTANT

There might come a time in future when people may forget the art of cooking and

connoisseurs will have to revive the art.

“With all readymade mixes and eatables available in market, why waste time on making

such things. Many of us are professionals and we do not have time to try and learn to

make,” says S. Geetha, an advocate.

Not just sweets and savouries but even idli batter is one item that is very much needed

during the festival time. A. Krishna, who has been running an idli dosa batter for the past

five years, says he will be grinding 50 litres of batter extra this year. They don’t have

time to soak and grind to make the batter so we provide it to them.

Ramesh Narayanan, vice-president (State head) of Reliance Fresh, says that people prefer

to spend quality time with the family on a holiday rather than using that time to cook. “A

lot of readymade mixes including vada mixes, payasam mixes are available. In fact, there

is even instant sambar from a few brands. However, people want to make the stuff at

home so we are just providing them the raw materials so they can make it quickly.”

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Deepa H Ramakrishnan

The Hindu

Oct 27, 2008

Consumer Perception About Fast Food in India: An Empirical Study

Fast food is one of the world's fastest growing food types. It now accounts for roughly

half of all restaurant revenues in the developed countries, where it continues to expand.

However, some of the most rapid growth is occurring in the developing world, where it is

radically changing the way people eat. People buy fast food because it is cheap, easy to

prepare, and heavily promoted. This empirical study focuses on the understanding of the

consumer perception about fast food outlets and the importance of various factors like

variety of food, taste and quality, ambience and hygiene, service speed, price, location

and parking space, which affect the choice of fast food outlets in young consumers

Prakash Tiwari and Hemraj Verma

Published: Dec, 2008

The Icfai University Journal of Consumer Behavior

Consumer Behaviour

Consumer Behavior is everything and everything is consumer behavior" is the motto of

this book. Today, studying and understanding consumer behavior is prerequisite for the

success of firms in the marketplace and individuals in the workplace. It provides insights

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into product, pricing, retail, advertising, and communication strategies. Accordingly , the

text focuses on how and why consumers make specific decisions and behave in certain

ways- what motivates them, what captures their attention, and what retains their loyalty?.

Apart from answering such questions, the book gives the characteristics of individual and

group that influence consumer's decisions and behaviors, such as demographics,

lifestyles, personality, values, culture, and family.

Blackwell R D

Consumer Behaviour

9th Edition

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3.1 PROBLEM STATEMENT

Has the ready to eat segment welcomed well in India? Price, freshness and

taste are issues to contend with.

3.2 OBJECTIVES OF THE STUDY

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™ To Find out Consumer behavior towards ready to eat food Products

™ To Find out consumer response to Pricing of product

™ To Find out the Distribution effectiveness of products

™ To Find out the effectiveness of Promotional activities

3.3 RESEARCH METHODOLODY

Research Methodology is an organized and systematic way of finding answers to

questions.

This is a descriptive research project entitled as “A study on consumer perception

towards MTR instant food products”. It is a descriptive research project because the

study is a fact finding investigation with adequate interpretation. It focuses on one

dimension of the problem studied i.e. consumer perception towards MTR instant food

products. Data is collected by using two sets of questionnaire one for the customer’s and

the second for retailers. The study is also analytical as it aims at testing hypothesis and

specifying and interpreting relationships.

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The method of study used is surveys. Survey is a fact finding study. It is a method of

research involving collection of data directly from a population or a sample thereof at a

particular time.

Well selected sampling can reflect fairly and accurately the characteristics of the

population. The chief aim of sampling is to make an inference about an unknown

parameter from a measurable sample statistic. The second aim of sampling is to test a

statistical hypothesis relating to population.

A good sample should be representative, accurate, precise and of adequate size. Some of

the advantages of sampling are that it reduces time and cost of research, the quality of the

study is often better with sampling when compared to a complete coverage and it

provides quicker results. But all of the above mention advantages can be yield only if the

researcher has a thorough knowledge of sampling methods.

There are various sampling techniques available like area sampling, clustered sampling

etc. The criteria for selecting sampling techniques are - purpose of the survey,

measurability, degree of precision, information about the population and time limitation.

Considering these criteria Probability or Random sampling is chosen.

The technique of sampling used for Customers is Simple Random Sampling. This

sampling technique gives each member of the sample an equal and independent chance of

being selected. This technique is suitable as the population size is small and

homogeneous.

The technique of sampling used for Retailers is Stratified Random Sampling. In this

method, the population is sub-divided into homogeneous groups or strata and from each

stratum random sample is drawn. This technique is suitable as the population size is large

and heterogeneous.

The difficulties faced in sample size decision are precision required, the way the results

are to be analyzed and number of variables to be studied. Thus basic concepts relevant to

sample size like sample value and population parameter, mean of sampling distribution,

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standard distribution etc. need to be kept in mind while determining sample size. Thus a

sample size of 100 is taken in case of customers and a sample size of 10 is taken in case

of retailers.

The search for answers to research question is called collection of data. The source of

collecting data here is from Primary source as the project has been taken over for the

first time & the information gathered are fresh .The approach applied for conducting

research or project work & collecting data is ‘survey research’. It stands for undertaking

surveys & gathering information regarding the research.

The research has involved questionnaire, as its research instrument .It is the most

common tool for collecting primary data. It basically consists of carefully developed,

tested, sequenced & objective oriented set of question and is resented to respondents.

In it there can be different types of question as per the research but it should be always be

easier to interpret and tabulate.

In order to conduct survey a sequenced and structured questionnaire was prepared

consisting of all relevant questions essential for gathering the required data .The

questionnaire was then distributed to the respondents of universe falling in the sampling

unit. After a bit of delays and convincing conversations with respondents the

questionnaire was filled and collected.

After the collection of filled questionnaires it were set to make analysis and draw

inferences so as to have some feasible options for the company .The analysis and

interpretation can be seen in the following pages. It also shows different parameters of

variability & consistency in the data collected.

The above descriptions can be summed up in the following form:

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SAMPLE DESIGN:

Title Description

Type OfResearch

Descriptive and Analytical study

Method ofStudy

Survey

Universe Bangalore

SamplingUnit

Customers and Retailers

SamplingTechnique

1) Simple random sampling for customers

2) Stratified sampling for retailers

Sample Size 1) 100 for customers

2) 10 for retailers

Source OfData

Primary data (questionnaire and observation) Secondarydata (through journals, Internet etc.)

Method OfDataCollection

Questionnaire and Observation

Data analysisand inference

The data generated is subjected to simple statisticaltreatment and inferences have been drawn accordingly.

3.4 RE S EARCH LIMITATION

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™ The research investigation is confined to 10 retail units in Bangalore

City

™ Limited sample size due to time and resource constraints

™ The study focuses on only MTR retailers

3.5 SETS OF HYPOTHESIS

Set: 1

HA: Usage of MTR food products is not regular.

Set: 2

HA: Advertisement has more impact than word of mouth.

Set: 3

HA: 50% of the population considers pricing of MTR instant food products

to be high but affordable.

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Set: 4

HA: Brand MTR is a powerful brand when compared to its competitive

brands.

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4.1 TESTING OF HYPOTHESIS

TESTING OF HYPOTHESIS OF QUESTION 6 FROM CONSUMER

SURVEY QUESTIONNAIRE

Step 1:

Null Hypothesis (H0): Usage of MTR products is regular

Alternate Hypothesis (HA): Usage of MTR food products is not regular. The test is one

tailed since the alternate hypothesis is in terms of most preferred.

Step 2:

The level of significance selected for the test is 5% since some of the respondents may

give incorrect information.

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Step 3:

Chi-Square distribution is selected for the test since it is a test which considers various

issues into consideration. Here we are trying to understand what are the occasions in

which one uses instant food products by MTR?

a) Serving guests

b) Festivals

c) Parties

d) Regular usage

This test is applied to ascertain whether MTR products are used on a regular basis or

occasionally.

Chi-Square Table

O E O-E (O-E)2 (O-E)2/E

24 23.75 0.25 0.0625 0.002

15 23.75 -8.75 76.5625 3.22

18 23.75 -5.75 33.0625 1.329

38 23.75 14.25 203.0625 8.55

Total 13.164

χ2 (cal) = ∑(O-E)2/ E = 13.164

For χ2 tabulated,

Degree of Freedom (DoF) = (4-1) =3 and

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Level of Significance (LoS) = 5%

So, χ2 tabulated using DoF 5 and LoS 5% =7.813

Step 4:

Since, calculated value of χ2 (13.164) is greater than tabulated value of χ2 (7.813), we

reject the null hypothesis.

Hence, the alternate hypothesis i.e. Usage of MTR food products is not regular is

accepted.

Testing of hypothesis OF Question 10 from Consumer survey

questionnaire

Step 1:

Null Hypothesis (H0): Advertisement and word of mouth have equal importance.

Alternate Hypothesis (HA): Advertisement has more impact.

It is a normal distribution test and it is a one tail test.

Step 2:

The level of significance selected for the test is 5% since some of the respondents may

give incorrect information.

Step 3:

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Here we are trying to understand from where did customers hear about instant food

products by MTR?

a) Advertisement

b) Kiosks

c) Word of mouth

d) Sales promotion

Where P1= 0.58, P2 = 0.44, (1 – P1) = 0.42, (1 – P2) = 0.56, n1= 109. N2= 109

Hence Z (cal) = 2.153

Z (tab) = 1.645

Step 4:

Since, Z (cal) [2.153] is greater than tabulated value of Z (tab) = 1.645

We reject the null hypothesis i.e. Advertisement and word of mouth have equal

importance.

Hence, the alternate hypothesis is accepted i.e. Advertisement has more impact.

Testing of hypothesis for Question 11 from Consumer survey

questionnaire

Step 1:

Null Hypothesis (H0): 50% of the population considers pricing of MTR instant food

products to be moderate.

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Alternate Hypothesis (HA): 50% of the population considers pricing of MTR instant food

products to be high but affordable.

Step 2:

Here we are trying to understand what do customers think about the pricing of the

product?

a) Nominal

b) Moderate

c) High but affordable

d) Very high and not affordable

Using z- test to test the hypothesis

Z=

Ps=0.57. Here Ps corresponds to the positive responses of the sample

P=0.5 Q=1-P= 1- 0.5 = 0.5

Hence Z (cal) = 1.4

Z (tab) = 1.96

Step 3:

Since, Z (cal) 1.4 is less than tabulated value of Z (tab) 1.96

We accept the null hypothesis i.e. 50% of the population considers pricing of MTR

instant food products to be moderate

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Testing of hypothesis for Question 14 from Consumer survey

questionnaire

Step 1:

Null Hypothesis (H0): Brand MTR is equally popular like all its other competitive brands.

Alternate Hypothesis (HA): Brand MTR is a powerful brand when compared to its

competitive brands.

Step 2:

Here we are trying to understand which of the following ready to eat would be prefer?

a) Kitchens of India

b) Aashirvaad

c) MTR

d) Godrej Yummiez

Using z- test to test the hypothesis

Z= Here N corresponds to the number of samples which is 100

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Ps=0.771, Here Ps corresponds to the positive responses of the sample

P=0.5 Q=1-P= 1- 0.5 = 0.5

Hence Z (cal) = 5.4

Whereas Z (tab) = 1.96

Step3:

Since, Z (cal) 5.4 is greater than tabulated value of Z (tab) 1.96

We reject the null hypothesis i.e. Brand MTR is equally popular like all its other

competitive brands

Hence alternative hypothesis is accepted i.e. Brand MTR is a powerful brand when

compared to its competitive brands.

4.2 DATA ANALYSIS AND INFERENCES OF CUSTOMER

QUESTIONNAIRE

Question 1

What kind of food do you go for apart from home food?

Option Tabulation Percentage

Restaurant 88 79

Home delivered 6 5

Instant food 17 15

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Inference

Restaurants are the most preferred option in food after home food. 88 respondents opted

for restaurants i.e.79% of the sample size. As more and more food joints are opening up

and the increase in number of shopping malls, people are eating out as a part of their

recreation process. Ready to eat food will definitely attract customers who want to save

time and labour.

Question 2

Nutrient and hygiene wise rank the option?

Optiona.

Tabulation Percentage

Restaurant 39 39

Home delivered 28 28

Instant food 33 33

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Inference

The above chart is the comparative study between the given options. 39 respondents

choose restaurant, Instant food follows next with 33 respondents. This shows consumers

are willing to consume instant food products and issues like packing, quality of the food,

freshness and nutrient are factors with which they are content with. This is a good sign

for instant food manufacturer MTR.

Question 3

What are the reasons to purchase Instant food products?

Option Tabulation Percentage

Price 1 1

Quick preparation 91 91

Taste 3 3

Brand name 5 5

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Inference

This question helps us to understand the factors that influence customers buying

behavior. 91% of the respondents opted for instant food due to quick preparation. Thus

due to a fast pace life consumers have less time to prepare food and thus this is where

instant food fit in the requirements of the consumers. Others factors like price, taste and

brand name are not issues which affect the buying behavior of the consumers

Question 4

Do you use instant food products of MTR?

Option Tabulation Percentage

Yes 84 84

No 16 16

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Inference

84% of the population responded positively when asked if they consumed instant food

products of MTR. This shows more than 50% of the population is aware of brand MTR.

This also shows that it is a trusted brand and also a popular brand which has satisfied its

customers wants.

Question 5

How frequently you use instant food products by MTR?

Option Tabulation Percentage

1-2 in a month 33 33

3-4 in a month 19 19

On special occasion 33 33

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Inference

It is clear from the above chart that MTR instant food products are used on an average

twice a month and on special occasions as the respondents have equally opted for it. This

can also be inferred that MTR provides food for regular requirement as well as the

special need for special occasions.

Question 7

Do you find the same taste as compared to home food?

Or

Does the food product match the standards of your taste?

Option Tabulation Percentage

Yes 52 52

No 41 41

Don’t know 7 7

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Inference

With 52 respondents opting for yes indicates MTR instant food products are of superior

quality and taste of the food is as good as food prepared at home. This is one attribute

which has influenced the purchasing decisions of many consumers making MTR a

popular brand. But 41 respondents do not agree to the taste being similar to home food,

thus MTR need to improvise on the taste of its products manufactured.

Question 8

Have you seen or can you recall any advertisements or promotions of instant food

products by MTR?

Option Tabulation Percentage

Yes 76 76

No 24 24

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Inference

Since 76% of the population has seen MTR advertisement which means the company has

successful spread awareness about the existence of the brand. Though the advertisements

are aired occasionally it has managed to capture the attention of the consumer and also

can be recalled by the customers. This is also because MTR is a home brand of Bangalore

and thus no advertisements is required to spread awareness.

Question 9

From where do you buy instant food products by MTR?

Option Tabulation Percentage

Super markets 76 76

MTR retail outlets 23 23

Local kirana 8 8

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Inference

After awareness the availability of the product at point of purchase is important. 76

respondents said they purchase MTR instant food products from super markets, 23

respondents purchase it from local kiranas. Local kiranas are present in huge numbers

and are wide spread throughout Bangalore thus product should be made available there

and 8 respondents purchase from MTR retail outlets directly. Since more than 70 percent

of respondents purchase MTR instant food products from super markets, we can conclude

that the product coverage is pretty good and they are well promoted by the super market.

Question 12

Are you satisfied with the packaging of instant food products by MTR?

Option Tabulation Percentage

Satisfied 94 94

Not satisfied 6 6

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Inference

Packaging is one major aspect of marketing of the product. MTR spends a huge amount

in getting the best packaging done for its instant food products to ensure quality and shelf

life of the product. Ready to eat products have sterilized packaging but still there are

certain doubts in the mind of customers regarding packaging since the climate of India is

very uncertain and variable. 94 respondents were satisfied with the packaging of product

while 6 were not satisfied. The shows that MTR has got its packaging right and has

successfully created awareness among the people about the hygiene and safety of the

product

Question 13

What kind of packaging do you prefer?

Option Tabulation Percentage

Tetra Packs 75 75

Jars 9 9

Container 18 18

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Inference

As we observe from the chart above 75% of the respondent are satisfied with MTR Tetra

packing. Only 25 % of the population feels the packing should change. Thus MTR should

continue to pack the instant food products in tetra packs but the look of the pack can

change as that will attract the customers. Besides tetra packs ensure quality of the product

and are also easy to transport to the retail outlets from tha factory outlet. They are easy to

store for the retailers also.

4.3 DATA ANALYSIS AND INFERENCES OF RETAILER

QUESTIONNAIRE

Question 4

Frequency of order taken:

Option Tabulation Percentage

Once monthly 1 10

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Twice monthly 2 20

Thrice monthly 2 20

Four times in a month 5 50

Inference

The above graph shows that out of sample size of 10 retailers 5 of them place the order

four times in a week. Which makes it 50% of the retails of MTR instant food products

place their order once weekly.

Question 7

Availability of stock compared to the competitors brands - Godrej yummiez, Kitchens of

India and Aashirvaad ?

Option Tabulation Percentage

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High 9 90

Low 1 10

No stock 0 0

Inference

Availability of MTR instant food products is high and the retailer also agree to it .There

are no retailer who do not keep MTR products at all. This show that it is a brand which

sells and MTR does make sure there product are available to the customers at any place.

But there some retailer who found the availability to be low and thus the company needs

to work on this slack. Thus MTR is highly available than its competitors brand which

indicates its monopolistic position in the markets.

Question 10

Are you satisfied with the distributor regarding the trade terms:

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Option Tabulation Percentage

Satisfied 6 60

Not satisfied 1 10

Somewhat satisfied 3 30

Inference

For the sale of the products there are certain trade terms which are set between the

company and retailers for e.g. Shelf space, promotion archives, retention of unsold stock,

limitation of stock to be purchased, payment on credit, advance payment and certain

other factors. Research showed that 60% where satisfied with the terms only 30% showed

some dissatisfaction

Question 11

Are you satisfied with the distributor regarding the frequency and method of delivery?

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Option Tabulation Percentage

Satisfied 8 80

Not satisfied 2 20

Inference

Logistics or supply chain are important aspects of sales, frequency of distribution, how

fast the company respond towards demand of the retailers, the mean mode of delivering

the goods is it safe, as we are talking food products any sort of damage due to

transportation of goods may bring loss.80% of the retailers responded satisfactory and

20% where dissatisfied with delivery and response method. The main problem which

they highlighted was late response of the demand made, and sometimes these food

products where not delivered safely which resulted damages in the packaging

Question 12

Retailer satisfaction level with kitchens of India range quality, pricing and promotional

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services?

Option Tabulation Percentage

Satisfied 7 70

Not satisfied 3 30

Inference

Quality and pricing are factors which are driving force behind the buying decision

process of the consumers. MTR takes care of these factors and has always provided to its

customers quality products at affordable prices. 80% of the retailers were satisfied with

their promotional activities. They said that since MTR is a strong home brand

promotional activities are not required as brand awareness is high. But 20 % felt it was

not satisfactory and efforts needs to be taken as new and strong players are entering the

instant food industry and this may affect the monopolistic status of MTR.

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MAJOR RESEARCH FINDINGS

The study shows that the package food market has grown in India and so the

consumption rate, but still it is facing problems to capture the Indian consumers. Some of

the findings, encountered during working on this research, are:

™ Indian consumers still prefer freshly cooked home food over instant food

products due to the usage of preservatives and other chemicals in the instant food.

Rumors that instant food is toxic in nature have stoped many consumer to

consume the product.

™ Doubts still exist on the nutrient and hygiene of these instant food products as

news of bad conditions of the factory outlets are constantly seen.

™ Instant food is not used on a regular basis and is only used for certain occasions

or in times of emergency when time is a constrain.

™ Advantage that MTR has when compared to other competitors brands is that

the consumers feel the products tastes like home food.

™ Extensive advertisement or sales promotion activities is not required in case of

MTR as it is a home brand and consumer are well aware of it.

™ MTR products are widely available, from super markets to small next to door

Kirana shops. The distribution network is widely spread and strong.

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™ MTR gains a lot of free publicity due to word of mouth thus reduce their need of

promotional strategies.

™ The pricing strategies are also good as they cover all the expenses for the

company and also give them a little profit. The consumers also don’t feel the

prices are not affordable and can see value for their money due to superior quality

and packaging of the product.

™ MTR has always brought innovation into their products and thus it has the appeal

with their customers and also has built brand loyalty.

™ The stocks are supplied on weekly basis and the supply is regular thus making

the availability continues.

™ Some of the products are made available only are exclusive MTR outlets only

and are not supplied to other distributors.

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RECOMMENDATIONS

™ MTR should create awareness that instant food can be used regularly and it does

not have any harmful effects.

™ MTR should also increase their promotional activities as in Bangalore consumer

are aware of the brand, but consumers in north region and other parts of India are

not that aware of the brand.

™ The packaging can be more attractive and appealing. The packaging should be

made keeping in mind the convenience of the consumers.

™ Sales representatives should be sent on a regular basis to retail outlets where to

adhere to any complaints or suggestion given by consumers.

™ The taste of the instant food products can be improved in case of North Indian

dishes and Soups.

™ New items can be introduced in the instant food, but MTR should stick to Indian

food only because consumer perception towards MTR food products will not

welcome western dishes in a positive way.

™ MTR should focus on exporting its range of instant food as there are many

Indians who have settled abroad and can connect to the product.

™ MTR should also target consumer who are constantly travelling abroad or other

places in India, as food can be carried and consumed conveniently.

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BIBLIOGRAPHY

™ Journal of Services Marketing, ICFAI Publications

™ Marketing Mastermind, ICFAI Publications

™ Journal of Marketing, ICFAI Publications

™ Business Standard (Strategist)

™ Business Line (Catalyst)

™ Economic Times (Brand Equity)

™ Financial Express (Brand Wagon)

™ Harvard Business Review

™ Economist

™ The Hindu

™ The Financial Express

™ www. Wikipedia.org

™ www.consu merpsychologist.com

™ www.ic mr india.org

™ www.Mana gementParadise.com

™ www.indiastudychannel.com

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™ Consumer Behavior by Tyagi Cl, Arun Ku mar

™ Consumer Behavior, 9th Edition by Leon G. Schiffman, Leslie Lazar Kanuk.

Published by Prentice hall of India.

™ Consumer Behavior by Matin Khan

™ Consumer perception, 3rd edition by Schiffman, Bednall, O'Cass, Paladino andKanuk. Published by Pearson Education.

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ANNEXURE

CUSTOMERS QUESTIONNAIRE

Dear respondent,

We the students of M.P.Birla Institute of Management, Bangalore are conducting

this survey as part of our project in the field of market research. The purpose of this

activity is to measure the penetration of Instant food products by MTR in Bangalore

city. Given below is the questionnaire, we request you kindly to give your responses

to the questions given therein. We assure you that the information so provided by

you will be kept strictly confidential. We shall greatly appreciate your responses:

Ekta .a. Jain

1. What kind of food do you go for apart from home food?

i. Restaurant

ii. Home delivered

iii. Ready to eat

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2. Nutrient and hygiene wise rank the option?

i. Restaurant

ii. Home delivery or carry away food

iii. Ready to eat

3. Reasons to purchase ready to eat?

i. Price

ii. Quick preparation

iii. Taste

iv. Brand name

4. Do you use instant food products by MTR?

i. Yes

ii. No

5. How frequently you use instant food products by MTR?

i. 1-2 in a month

ii. 3-4 in a month

iii. On special occasion

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6. What are the occasions in which you use instant food products by MTR?

i. Serving guests

ii. Festivals

iii. Parties

iv. Regular usage

7. Do you find the same taste as compared to home food?

Or

Does the food product match the standards of your taste?

i. Yes

ii. No

8. Have you seen or can you recall any advertisements or promotions of instant food

products by MTR?

i. Yes

ii. No

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9. From where do you buy instant food products by MTR?

i. Super markets

ii. MTR retail outlets

iii. Local kirana

10. From where did you hear about instant food products by MTR?

i. Advertisement

ii. Kiosks

iii. Word of mouth

iv. Sales promotion

11. What do you think about the pricing of the product?

i. Nominal

ii. Moderate

iii. High but affordable

iv. Very high and not affordable

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12. Are you satisfied with the packaging of instant food products by MTR?

i. Satisfied

ii. Not satisfied

13. What kind of packaging do you prefer?

i. Tetra Packs

ii. Jars

iii. Container

14. Which of the following ready to eat would you prefer?

i. Kitchens of India

ii. Aashirvaad

iii. MTR

iv. Godrej Yummiez

15. Your recommendations for improvement:

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A word about yourself

Name:

Address:

Age: a) 18 – 25 b) 26 – 30 c) 31 – 40 d) above 40

Occupation: student/ Service/ Business/ Any other……….

Sex: Male/ Female

Annual Income: a) < 100000 b) 200000 - 250000 c) 250000 – 300000 d) > 300000

THANK YOU FOR SPARING YOUR VALUABLE TIME FOR GIVING

RESPONSES TO THE QUESTIONNAIRE.

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RETAILERS QUESTIONNAIRE

Dear respondent,

We the students of M.P.Birla Institute of Management, Bangalore are conducting

this survey as part of our project in the field of market research. The purpose of this

activity is to measure the penetration of Instant food products by MTR in Bangalore

city. Given below is the questionnaire, we request you kindly to give your responses

to the questions given therein. We assure you that the information so provided by

you will be kept strictly confidential. We shall greatly appreciate your responses:

Ekta .a. Jain

1. Name of the retail outlet:

2. How old is the outlet?

3. No. of people employed:

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4. Frequency of order taken:

i. monthly once ii.

Monthly twice iii.

Monthly thrice

iv. Monthly four times

5. Frequency of delivery of stock:

i. Monthly once

ii. Monthly twice

iii. Monthly thrice

iv. Monthly four times

6. Availability of stock

i. Available

ii. Not available

iii. Don’t keep

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7. Availability of stock compared to the competitive brand, Godrej yummiez,

Kitchens of India and Aashirvaad?

i. High

ii. Low

iii. No stock

8. Does your outlet cover entire range of product?

i. Yes

ii. No

iii. Don’t keep

9. How often the company sales person visits your shop?

i. Visit regularly (every month)

ii. Occasionally

iii. No visit

10. Are you satisfied with the distributor regarding the trade terms:

i. Satisfied

ii. Not satisfied

iii. Somewhat satisfied

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11. Are you satisfied with the distributor regarding the frequency and method of

delivery?

i. Satisfied

ii. Not satisfied

12. Retailer satisfaction level with MTR range quality pricing and promotional

service?

i. Satisfied

ii. Not satisfied

THANK YOU FOR SPARING YOUR VALUABLE TIME FOR GIVING

RESPONSES TO THIS QUESTIONNAIRE

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EXPLANATION TO THE RESEARCH INSTRUMENT USED

STATISTICAL ANALYSIS

Statistical analysis is used for estimating the values of unknown characteristics

(parameters) of the population and for testing hypothesis for drawing inferences. Analysis

may thereof be broadly classified into:

1. Descriptive Analysis

2. Inferential Analysis

Descriptive Analysis – this type of analysis describes the nature of an object or

phenomenon under study. This sort of analysis may describe data on one variable, two

variable, or more than two variables. Accordingly it is called univariate analysis,

Bivariate analysis and multivariate analysis respectively. The analysis consists of

multiple regression analysis, multivariate analysis of variants, factor analysis canonical

analysis and multiple discriminant analysis.

Inferential Analysis- Is concerned with drawing inferences and conclusions from the

findings of a research study. There are two areas of statistical inferences

a) Statistical estimation

b) Testing of hypothesis

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TESTING OF HYPOTHESIS

Hypothesis is a tentative proposition formulated for empirical testing. It is a declarative

statement combining concepts. It is tentative answer to a research question. It is tentative,

because its veracity can be evaluated only after it has been tested empirically. Lundberg

defines hypothesis as “A tentative generalization, the validity of which remains to be

tested”

The characteristics of a good hypothesis are:

1. Conceptual clarity.

2. Specificity.

3. Testability.

4. Availability of techniques.

5. Theoretical relevance

6. Consistency

7. Objectivity

8. Simplicity

There are two types of hypothesis:

i. Null Hypothesis: It states that there is no significant difference between the

sample value & the population value. This means that the observed different are

due to random fluctuations. The null hypothesis is denoted by (H0).

ii. Alternate Hypothesis: In case the test rejects the null hypothesis, one’s should

have an alternate to accept it. It is provided by alternate hypothesis & denoted by

(HA).

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TESTING OF HYPOTHESIS

Techniques of hypothesis testing are used if we have an idea about the value of the

parameter in question. The modern theory of probability plays a vital role in decision

making and the branch of statistics with helps in arriving at the criteria for such decision

is known as testing of hypothesis.

LEVELS OF SIGNIFICANCE

It represents the level of risk; the experimenter is ready to take in rejecting a true

hypothesis, & is denoted by Alpha (α). (1- α) give the level of confidence of the

experimenter in taking the decision. It is always preferable to keep the level of

significance at a low level or percentage, it means that one’s should not reject a true

hypothesis. Beta (ß) represents the risk of accepting a false hypothesis. (1- ß) is called

‘The Power of the Test’.

DEGREE OF FREEDOM

It refers to the number of observations that can be varied without changing the constraints

or assumptions associated with a numerical system.

TYPES OF ERROR

While testing hypothesis there are four possible combinations between population

value & sample value. These combinations are:

i. Hypothesis is true & the test accepts it.

ii. Hypothesis is true & the test rejects it.

iii. Hypothesis is false & the test accepts it.

iv. Hypothesis is false & the test rejects it.

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PROCEDURES FOR TESTING HYPOTHESIS

Step one:

Setting up a null hypothesis donated by (H0); this means there is no statistical difference

between sample statistic & population parameters. In case of (H0) is rejected, one’s must

have an alternative hypothesis accept, therefore, one’s must setup an alternative

hypothesis denoted by (HA). It may be in terms of not equal to (≠), (<), or (>). Whenever

the sample statistic is (≠) population value, then the test is said to be two-tailed test. If the

statistic is (<) or (>) of the population value, then the test is said to be one-tailed test.

Step two:

Before starting the test, one’s must specify the level of significance, which is nothing else

but the probability of rejecting the two hypotheses. This gives the tabulated value of that

statistic.

Step three:

Selection of an appropriate distribution for the test, which is known as ‘Test Statistic’.

The distributions generally used are Normal Distribution,‘t’ Distribution, or Fisher’s ‘F’

Distribution, and Chi-Square Distribution.

Step four:

Calculation of the necessary value from the given data for the test.

Step five:

Conducting actual test & it’s known as ‘Calculated Value’.

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Step six:

Making the decision as follow:

i. If calculated value is smaller that (<) the tabulated value, (H0) is accepted.

ii. If the calculated value is greater than (>) the calculated value, (H0) is

rejected, & (HA) is accepted.

Chi-square Test

Chi-square test statistically determines significance in the analysis of frequency

distribution. The logic involved in the chi-square test is that of comparing the observed

frequencies and the expected frequencies. It is called a non-parametric test because it is

based wholly on sample observations and does not require any value corresponding to a

population parameter it is defined as Chi-square test.

Z- TEST

A Z-test is any statistical test for which the distribution of the test statistic under the null

hypothesis can be approximated by a normal distribution. Since many test statistics are

approximately normally distributed for large samples (due to the central limit theorem),

many statistical tests can be performed as approximate Z-tests if the sample size is not

too small. In addition, some statistical tests such as comparisons of means between two

samples, or a comparison of the mean of one sample to a given constant, are exact Z-tests

under certain assumptions.

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DIRECTIONS FOR FURTHER RESEARCH