project blue print
TRANSCRIPT
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title
A
PROJECT REPORT OF
CONSUMER BUYING BEHAVIOR
ON
SUBMITTED TO GUJARAT TECHNOLOGICAL UNIVERSITY
FOR
MASTER OF BUSINESS ADMINISTRATION
ACADEMIC YEAR: - 2009-2010
BY
JIGNESH M PANDAV
MBA SEM-II
ENROLLMENT NO: 097610592038
UNDER THE GUIDANCE OF
MR.KARTIK. M. KHATSURIYA
SAHJANAND INSTITUTE OF MANAGEMENT
BHAVNAGAR
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STUDENT DECLARATION
I hereby declare that the project report entitled
Consumer Buying Behavior
At
Submitted in partial fulfillment of the requirements for the degree of
MBA to Gujarat Technological University, Gujarat is my original
work and not submitted for the award of any other degree, diploma,
fellowship, or any other similar title or prizes.
I have prepared this report within 45 days. I am very happy insubmitting this report to the department of business administration.
Date:
Signature:
Place: Bhavnagar Jignesh
M Pandav
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PREFACE
A practical knowledge in a students life is very important. It helps astudent to know the real life situation and problems of life. Same is
the case with the corporate world. Theoretical knowledge is very
much needed but practical knowledge is equally important. This
practical knowledge to a student is given in a form of training.
Training helps a student to interact with the experienced people of
the corporate world and hence learn more from them. Here, thestudent learns how to apply the theoretical knowledge in practice.
Being a student of MBA it was a very valuable and memorable
experience at SHASHI INDUSTRIES. We learnt the management
subject, came across to various day to day activities of various
department in the organization. This wonderful experience has
given me a new light to what I had studied.
This training was undertaken during the period of 5th JUNE to
20th JULY 2010 for the 2ndsemester of MBA programmed of, during
the academic year 2009-10. I have undergone training at SHASHI
INDUSTRIES; I have tried my level best in the construction of this
report.
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ACKNOWLEDGEMENT
Every person has his grandparents and good parents the
grandparents are these people whose knowledge, experience, and
attitude you absorbed almost without releasing it, they should be
"Acknowledgement"
It is matter of greater pleasure for me to get this opportunity of
expressing out deep and sincere sense of gratitude to our principal
Ms.Saroj Vats " and our co-ordinate Ms. Ami Pandya and I like
to thank Mr. Kartik Khatsuriya whose guidance and generous
support give me sufficient strength to prepared this project report.
I like to thank "Mr.Tusharbhai Vadher" who is a M.D. in the
"SHASHI INDUSTRIES and to Mr.Sanjeevbhai who is marketingmanager of Shashi industries. I also like thanks my project report
guide Mr.Yatin Bhatt, HR manager of Shashi industries, whose
devoted a good deal of his valuable time and experience in the
preparing of this report he really helps me to collecting data which
were required for the enrichment of this project report on "SHASHI
INDUSTRIES"
My sincere thanks to all the staff member of the SHASHI
INDUSTRIES for their Co-operation and support to me during mytraining.
Yours Sincerely,
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Pandav Jignesh M
Date:
Place: Bhavnagar
EXECUTIVE SUMMARY
This project report is based on consumer buying behavior on
Maza incense stick of Shashi industry. My study is descriptive in
nature. I have primarily described consumer buying behavior on
Maza incense stick of Shashi industry. I have putted small surveythrough questionnaire on 100 households in Bhavnagar city.
The main objective of study is to know about consumer buying
behavior toward Maza incense stick of shashi industry. To know
the Awareness to Maza incense stick. To know the influence
group of customers to Incense stick.To know what the features
customers are want in incense stick market. To know the feeling of
customers towards price level of incense stick.
The primary data of Shashi Industries are collected through
questionnaire method which is directly collected from relevant
respondents in Bhavnagar city. The secondary data of Shashi
Industries are collected through media advertisement, companys
catalogue & poster or through website or internet. For my problem I
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have collected fresh data i.e. primary data directly from relevant
respondents in Bhavnagar city.
My data analysis plan includes tabulation of collected data. I have
put data into graph and ultimately I have come to conclusion
The Finding & Conclusion: Awareness of Maza brand is excellent.
It is very popular brand in Bhavnagar city. Most of the people who
purchase incense stick take decision by themselves, but family,
relatives also play an important role. Most of the consumers are
middle class people (from occupation). Smell is the most leading
features in incense stick. Majority of the people are buying incense
stick from provision stores. Round about 60% people find
confusion in buying incense stick due to number of brands exist inthe market. Therefore I can say that buying behavior is somewhat
Dissonance Reducing.
TABLE OF CONTENTS
Sr.
No.
PARTICULARS Page
No.
1. GENERAL INFORMATION 7
2. MARKETING MANAGEMENT 28
3. LITRATURE REVIEW 42
4. RESEARCH DESIGN & MEHODOLOGY 45
4.1.PROBLEM DEFINING 46
4.2. THEORY RELEVANCE PROBLEM 47
4.3.RESEARCH OBJECTIVES 50
4.4.RESEARCH DESIGN 51
4.5. DATA SOURCES 53
4.6.RESEARCH INSTRUEMENT 54
4.7.SAMPLING PLAN 55
4.8.LIMITATION OF THE STUDY 57
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4.9.DATA ANALYSIS & INTERPRETATION 58
5 FINDING & CONCLUSION 75
6 SUGGESTION 77
7 BIBILIOGRAPHY 79
8 QUESTIONNAIRE 80
GENERAL INFORMATION
INDEX
SR
NO.
PARTICULARS PAGE
NO.
1.1. INTRODUCTION
9
1.2. COMPANY PROFILE 10
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1.3. HISTORY & DEVELOPMENT
12
1.4. SIZE OF THE UNIT
15
1.5. FORM OF BUSINESS ORGANIZATION
16
1.6. MANUFACTURING PROCESS
17
1.7. COMPANY PRODUCT
19
1.8. ORGANIZATION STRUCTURE
24
1.9. TIME KEEPING SYSTEM
25
1.10. AWARDS
26
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1.1. INTRODUCTION
I have visited the SHASHI INDUSTRIES at BHAVNAGAR forpractical study as mention in syllabus. Shashi industry is big name
in the market of incense stick. More than 55 brands of shashi
industry are in the market.
Shashi industries have their 5 branches at Bhavnagar and rests
are at Bangalore. I have undergone through practical training in the
area of marketing at GIDC chitra plant and its corporate office atselarsha road, darbari kothar, Bhavnagar.
v SHASHI INDUSTRY - BHAVNAGAR
v MAJA FREGERENCE - BHAVNAGAR
v SHASHI INDUSTRY - BANGALORE
v SHASHI INCENCE - BANGALORE
v SHASHI EXPORTS - BANGALORE
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The products of this company have strong image in the mind of
customer. The product are their brand name like Camay, denim,
Maza, pavitrachandan, rose, royal, mogra, kevda, nag champa,etc.
The firm was sole proprietorship till 1994.than after it has been in
1994-95 it converted into partnership firm. The partners are
Shashibhai vadher and his son tusharbhai vadher. MR. Tusharbhai
is the managing director at Bhavnagar. Mr. Nileshbhai & Mr.
Hiteshbhai is managing director in Bangalore base units of Shashi
group.
I have prepared my report on Consumer buying behavior
regarding incense stick and awareness of Maza incense stick in
Bhavnagar.
1.2. COMPANY PROFILE
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1) Name of industry : Shashi Industries
2) Establishment year : 1960
3) Address : Office:- Opp. Darbari kothar,
Shelarsha road,
Bhavnagar.
Factory:- plot no.36, G.I.D.C.
chitra,
Bhavnagar.
4) Telephone : (0278) 2430539, 2428254
5) Fax no : (0278) 436743
6) E-mail : [email protected]
7) Website : www.incensestickindia.com
mailto:[email protected]://www.incensestickindia.com/mailto:[email protected]://www.incensestickindia.com/ -
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8) Form of organization: Partnership firm
9) Products : various type of incense sticks.
10) Size of unit : Large scale
11) Bankers : State Bank Of India, H.O.Bhav.
12) Accounting year : April to March
13) Auditor : M/s J.C.Rampura & company
14) M.D. : Mr.shashibhai vadher
15) Investment from : 1) Owned Capital
2) Borrowed Capital
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16) Factory Area : 2000 sq.feet
17) Departments : Production, Marketing, Finance
&
HR.
18) Other Companies : 1) Shashi industries
Bhavnagar
2) Maza fragrance - Bhavnagar
3) Shashi industries
Bangalore
4) Shashi exports Bangalore
5) Shashi incense Bangalore
19) Production capacity: 25000 Dozens per year.
20) Total workers: 300
21) Competitors: Cycle incense stick Banglore
Shreeji and Laxmi Agarbatties - Bhavnagar
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1.3. HISTORY & DEVELOPMENT
ABOUT THE COMPANY
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Mr.shashibhai vadher was the founder of shashi industries, which
was established in 1960. At the time of establishment period they
were engaged in producing and marketing Pan-masala & kimam.
After long time period, about 13 years, the idea of producing
incense stick comes in their mind. So he decided to start the
incense stick business in the 1975.
When they selected this business, he observed that 95% of
incense stick market was covered by Banglore. So, Mr.shashibhai
vadher decided to start incense stick business with modern attitude
and wanted to introduce fancy fragrance of incense and also
strategic sticks of marketing. This was how the firm shashi
industries have been established.
Since 1994 it was a proprietorship and after that it converted into
partnership firm. The partnership is between Mr. Shashibhai
vadher and his son Mr. Tusharbhai vadher in this unit. The
partnership ratio is 60:40.
SHASHI INDUSTRIES started its 2nd unit at Bangalore in 1998
because of two reasons i.e...
1. The raw materials are easily available and its result in less
production cost.
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2. Easy to export from Bangalore.
ABOUT THE PRODUCT
A Shashi industry was manufactured and produced its 1st product
named A-ONE in the market in 1976. This product covered the
market in short term period. After the success of this product the
firm launched RUTURAJ in 1978 and PAVITRA CHANDAN in
1980. At this stage the turnover was up to 8 to 19lacs. In 1984 the
shashi industries famous product i.e. MAZA AGARBATI was
introduced.
In 1989 they introduced Denim & Zoola. The company is famous
most of only by Maza & Denim incense. Their other product are
camay,gulal,rose royal, shashi kevda, shashi sugandh, Sunday to
Sunday, cool breeze, etc.
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The products are available in different packing in the market. For
example, dhanyawad, kevda, mogra, today etc are available in one
packet. Camay, jaipur, magnet flora, Ruturaj tall, etc are availablein two types of packing. Rose royal-3, Pavitra Chandan-4, Denim-
6, Maja-7 types of packing are available in the market.
In super six are available in 70grams which are includes Camay,
Denim, Jaipur, Pavitra chandan, and Rose royal. And in top six are
available in 20gms which are includes bluebird, Camay, Denim,
Jaipur, Maza, and Yes. The prices are somewhat high but itsquality is also good to compare with price.
Some product of shashi industries were dropped out because of
some raw material or chemical is not available and some product
dropped out due to the change in choice and preference of
consumers. I.e. A-one & Voice.
Shashi industries has launched new product named Swadesh in
current year 2010.
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ABOUT THE COMPETITORS
The main reasons of competition are:
1. Small amount of capital required
2. Many facilities provided by Government
3. High profit margin
4. No excise duty
The incense industries require small capital investments. So that
many registered and non-registered companies are already stable
in the market.
According to one survey of Mundra Advertising Research Team
shashi industries got 3rd rank in producing incense. In the survey of
Sugandh Singar got 1st rank and cycle got 2nd rank, but both of
these strong competitors are at Bangalore. But in Gujarat shareeji
products and Laxmi Agarbatties are competitors of shashi
industries.
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In Bhavnagar there are also more than 100 factories producing
incense.
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1.4. SIZE OF THE UNIT
Size of the unit means what is the investment of the company,
what is the turnover the company and what is their standard. There
are mainly two factors are considered.
1. Total investment
2. Total employees.
According to government policy there are certain standards
regarding scale of operation which are under as:
1. Small Scale Industry investment between 1 corer to 5 corer
2. Medium Scale Industry investment between 5 corer to 7 corer
3. Large Scale Industry investment more than 7 corer
Shashi industries current turnover is more than 10 corers, so a
shashi industry has maximum features of large scale industry.
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1.5. FORM OF BUSINESS ORGANIZATION
There are many forms of business organization. They are
under as:
v Sole proprietorship: only one owner
v Partnership: minimum 2 and maximum 20
v Co-operative: minimum 2 and maximum 10
v Pvt. Ltd.Company: minimum 2 and maximum 50
v Public sector unit: minimum 2 and maximum 100
A shashi industry was a sole proprietorship firm when it wasstarted. Shashibhai vadher was the only owner of the firm. But in
1994-95 it was converted into partnership firm. The partners are
Mr.shashibhai vadher and his son Tusharbhai vadher.
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The reason behind this is only to get tax relief from the
government. Shashi industries posses all the characteristics of
partnership firm according to partnership act 1956.
1.6. MANUFACTURING PROCESS
The manufacturing process of shashi industry is simple and not
complicated. In this industry, there is no use of modern tools and
equipment. So we can say that manufacturing process of shashi
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industry is 100% man base. The most important factor used in
manufacturing process of any industry is the raw materials. The
raw material of shashi industry is only raw incense without any
chemical or any other process.
PROCESS: To do things in the systematic manner is called a
process. The production process of shashi industry is under as:
1. Assortment of raw incense:
Assortment means collection. Firstly the raw incense, which are
imported, are collected in bulk as well as perfume, which are
imported from the foreign country are tasted by the labors.
2. Adding fragrance:
Now, the 2nd important step of manufacturing process is adding
fragrance. The bundles of incense are deep into a big container,which contain perfumes and chemicals.
3. Drying process:
in this process the incense are kept in a big plate of aluminum for
drying. The incenses are dried for minimum 3 to 4 hours. And after
then the incenses are kept for drying process.
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4. Weighting process:
The 4th step is weighting process. In this process the incenses are
weighted in different grams like 8gms, 25gms, 30gms, 40gms,
75gms, and 110gms etc and also according to number of incenses
as per the order or demand of the customers.
5. Packing process:
This is the final step in this process. Incenses sticks are firstly
packed in plastic bags, according to its grams. These are airtight
packing so that the smell remains for long time and then pack it in
the boxes. Shashi industry have own printing press names Maza
printing press.
6. Quality control section:
Packed good must be passed from quality control section. In this
section supervisor of the firm checks its product quality to improve
effectiveness.
7. Marketing:
Products are sold to ultimate consumers and dealers.
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1.7. COMPANY PRODUCTS
Shashi industry is very famous in producing Brand Incense stick
the firm is producing about more than 55 types of incense sticks.
Some of them are as under.
1) Maza 2) Denim 3) Camay 4) Rose royal
5) Jasmin 6) Cool breeze 7) Kevda 8) Nag
Champa
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9) Supersix 10) Yes 11) Ruturaj 12) Pavitra Puja
13) Taal 14) Jaipur 15) Gulab 16) Mogra
17) Swadesh 18) Bakhur 19) Nature 20) DenimFlora
21) Organic 22) Pavitra Chandan Etc.
All the products are available in different packing of 10gms, 20gms,
30gms, 70gms, 80gms, 120gms, 140gms, 420gms etc. it is also
available in packing of amount of sticks like to 10sticks, 30, 75,
100, etc.
Denim Flagship Brands
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Oriental, Musky, Floral fragrance.
Qty. per Unit : 10 Sticks, 20 Sticks,
Hexagonal & Economy Packs
Maza
Flagship BrandsAvailable in Woody - Musky - Spicy - Oriental Fragrances
Bakhur / Jasmin / Rose / Ful Assorted FragrancesBakhur, Jasmin, Rose & Ful fragrances
Qty. per Unit : Flat Box 20 Sticks / 1 Dozen
Pack
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Camay Gold Premium Masala
Flora - Masala
Made with natural oils, Sandal wood,
Resnoids and Herbs
Qty. per Unit : 15 Sticks / 1 Dozen Pack
Cool Breeze Fancy / Oriental Products
Fresh - Musky - Cologne Fragrances
Qty. per Unit : Flat Box, 20 Sticks / 1
Dozen Pack
Shashi Top 6
[ ]
Gift Boxes - Premium Products Assorted 6 Hexagonal Pack in a
Gift Box Qty. per Unit : 20 sticks / Half Dozen packNag Champa Universal
http://shashiind.com/cat_productview.asp?prd_id=83http://shashiind.com/cat_productview.asp?prd_id=83 -
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Nag Champa
Nag Champa Masala Fragrance
Shashi Top 6 Gift Boxes - Premium Products
Assorted 6 Hexagonal Pack in a Gift Box
Qty. per Unit : 20 sticks / Half Dozen pack
Industry is producing so many brands but I have selected MAZA
to study consumer behavior. MAZA is the most famous brand of
shashi industry. MAZA is also available in different packing of
price. I have studied the awareness of MAZA in Bhavnagar city.
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1.8. ORGANIZATION STRUCTURE
Any business organizations success depends upon its
organization structure. The structure should be easy and
understandable because unnecessary complex structure created
many problems.
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1.9. TIME KEEPING SYSTEM
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The time keeping system is very important for an organization.
Shashi industries have also a separated time keeping office at the
front door. It is for permanent workers only. The time keeping officealso maintains register for wages and salary and it also help in
determining the production cost.
There is only on working shift and attendance is taken by workers
signature. There is also card system used for labors.
In SHASHI INDUSTRIES we know that all workers are working on
contract base. So contractor determines the time of working hours.
For the staff member the working hours are 9:00 am to 7:30 pm.
For the workers working hours are 9:00 am to 6:00 pm. In this
working hours lunch break and tea break are included. Lunch
break time is 12:00 am to 1:30 am and tea break time is 3 Oclock.
After it the workers again sinuously up to 7:30 pm.
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1.10. AWARDS
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MARKETING MANAGEMENT
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INDEX
SR
NO.
PARTICULARS PAGE
NO.
2.1. INTRODUCTION
30
2.2. ORGANIZATION STRUCTURE OFMARKETING MANAGEMENT
31
2.3. MARKET SEGMENTATION
32
2.4. PRICING POLICY
33
2.5. PRICE LIST 34
2.6. CHANNEL OF DISTRIBUTION
36
2.7. ADVERTISING
38
2.8. MARKETING STRENGTH 41
2.1. INTRODUCTION
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Marketing is the process of not only of selling and advertisementbut also of satisfying the need of consumers. Perhaps the simplest
definition of marketing is: marketing is the delivery of customer
satisfaction at a profit. The two golden goals of marketing are: To
attract new customer by promising superior value and to keep
current customer by delivery satisfaction. But many people think of
marketing only as selling and advertising iceberg. Now lets have a
look upon how shashi industry is practicing in such an important
department.
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2.2. ORGANIZATION OF MARKETING DEPARTMENT
The structure of organization provides us the detail information of
employees and how they related with each other. Shashi industries
have a separate marketing department, which controls all the
marketing activities of the firm. In shashi industry, the organizationstructure of the marketing department is well organized, which
chart is given under as:
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Mr. Tusharbhai vadher is the managing director of the marketing
department.
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2.3. MARKET SEGMENTATION
Market consists of buyers and buyers differ in one more ways.
They may differ in their wants, resources, locations, buying,
attitudes and buying practices. Through market segmentation
companies divide large, heterogeneous markets into small
segment that can be reached more efficiently with products andservices that must their unique needs.
Segmentation of market is necessary to serve better to the target
market. Any products market is not a single market. But it is a
composite of a various sub-market.
Shashi industry has covered its market in India and foreign. The
market is divided as three units. All the units covered the activities
as follows:
1. BHAVNAGAR UNIT: Gujarat, Maharashtra, Rajasthan, Bihar,Delhi, and Uttar Pradesh.
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2. BANGLORE UNIT: Karnataka, Andhra Pradesh, West Bengal,
Assam, Meghalaya, Orissa, Jammu & Kashmir and Punjab.
3. SHASHI EXPORT: Gulf countries, Nepal, Singapore, South
Africa, Switzerland, Taiwan, U.S.A. etc.
2.4. PRICING POLICY
Price is the amount of money charged for a product or services.
More broadly, price is the sum of the values that customers
exchange for the benefits of having or using the product or
services. The factors to be consider at the time of deciding price is:
v Demand of the product
v Average cost of the product
v Consumers behavior
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v Government regulation
v The rate of profit expected
v The degree of competition
The pricing policies are guideline to carry out pricing strategy.
Shashi industry pricing policy is under as:
Cost of production + profit + other expenses like dealerscommission + General Commission, transportation cost etc.
In this firm, if any changes come into price, then it becomes
applicable from the beginning of the month.
Thus, the price of any incense stick in this industry are decided
after referring the above given process completely.
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2.5. PRICE LIST
Sr. No Name of the products Packing
(in gms)
Price (rs.)
(of a dozen)
1 Maza 20 72.00
2 Maza silver pack 30 104.00- Maza 80 210.00
- Maza 160 374.00
3 Maza Hexa Gonal 22 81.00
4 Denim 20 74.00
- Denim 40 132.00
- Denim 75 300.00
- Denim 150 418.00
5 Denim Hexa Gonal 22 85.00
6 Rose Royal 20 60.00
- Rose Royal 70 172.00
7 Rose Royal Hexa Gonal 22 80.00
8 Ruturaj Mutha 20 46.00
9 Ruturaj 70 160.00
10 Pavitra Chandan Mutha 20 46.00
11 Pavitra Chandan 30 92.00
- Pavitra Chandan 70 160.00
- Pavitra Chandan 90 192.00
- Pavitra Chandan 180 342.00
- Pavitra Chandan 400 639.00
12 Shashi Kevda 70 160.00
13 Shashi Mogra 70 160.00
14 Yes 25 82.00
- Yes 75 230.00
15 Yes Hexa Gonal 22 88.00
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16 Jaipur 25 83.00
- Jaipur 75 242.00
17 Megnet Flora 22 146.00
18 Gulab 70 168.00
19 Gulab Large Hexa Gonal 60 160.0020 Current(5 in 1) 45 stick 122.00
21 Sunday to Sunday(7 in 1) 7 sick 190.00
22 Bluebird Hexa Gonal 22 82.00
23 Top Six (6 in 1) - 506.00
24 Trith 25 52.00
- Trith 70 140.00
25 Camay 20 72.00
26 Camay Hexa Gonal 22 76.00
27 Camay Gold 25 330.00
28 Super Six(economy)6 in 1 - 98.00 per pack
29 Maza Dhoop stick 10 stick 24.00
30 Maza Dhoop Large 20 stick 74.00
31 President 10 stick 22.00
32 President Dasang Dhoop stick 20 stick 70.00
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2.6. CHANNEL OF DISTRIBUTION
Distribution channel is a set of inter-dependent organization
involved in the process of making a product or service available for
use or consumption by the consumer or business. Most of the
producer use intermediates to bring their products to market.
The shashi industry is use two channels that are:
Direct Channel:
A marketing channel where there are no intermediary levels, the
company chooses to sell direct to consumer i.e.(Door to Door
selling by Salesman) under as:
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Company
Consumer
Indirect channel:
Indirect channel have one or more intermediaries levels. Shashi
industries has also use indirect channel to sells its product in
market, through distributor to retailer and retailer to consumers.
Like:
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Company
Retailer
Consumer
Distributors
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2.7. ADVERTISEMENT
According to American marketing association advertising meansany paid of non-personal presentation and promotion of ideas,
goods or services by and identified sponsor. Mostly commercial
firms use advertising. It is also used by wide range of non-profit
organizations, professionals and social agency that advertise their
causes to various target publics.
Mainly there are four type of advertising:
v Informative advertising: advertising used to inform consumers
about a new product or feature and to build a primary demand.
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v Persuasive advertising: advertising used to build selected
demand for a brand by persuading consumers that if offers the best
quality for their money.
v Comparison advertising: advertising that compares one brand
directly or indirectly to one or more other brands.
v Reminder advertising: advertising used to keep consumers
thinking about a product.
Advertising is a creative activity conducted through mass
educational media such as newspapers, magazines, radio, T.V.
etc.
Main objective of shashi industry:
v Advertising campaign in shashi industry is to increase the sales.
v Enter into new market-segments.
v Support sales force.
v Improve dealers relation.
The advertising budget shashi industry is Rs.25, 000=00 (7 to 8%
of their total turnover). Shashi industry uses two types of
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advertisement viz. General and retail or local advertising and
national advertising.
LOCAL ADVERTISING: Shashi industries have appointed Vivek
Advertising as local marketing agency. They use mostlynewspapers, local magazines, hoardings, wall painting etc. also by
painting on local bus, gift articles, airbags, carry bags etc. in
newspapers they give their advertisement mostly in Saurastra
Samachar, Fulchhab and Gujarat Samachar etc. and in
magazines, chitralekha, and Abhiyan. It also gives their
advertisement in cinema halls.
NATIONAL ADVERTISING: shashi industry appointed Apex
Advertising and Swift Advertising for a national level. Companyuses two types of media like print and broadcasting. In print media
they give that advertisement in national level newspapers and
magazines i.e. Times of India, India Express, Business India, etc.
in broadcasting they give their advertisement in Doordarshan, Zee
TV and Radio.
We often see many hoardings of Maza and Denim on highway,
Railway station, and S.T. station and in public places. They have
given wall painting in Gujarat, U.P. Bihar, Rajasthan, and
Maharashtra.
Shashi industry prepares that advertising copy through Vivek
advertising co. and Apex advertising co.
Some examples of their U.S.P. are:
DENIM: Feel something new
MAZA: Mast mijaj Maza
MAJA: The only choice
ZOOLA: Bring home the natural ambience.
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The company pays some portion of advertising expenses and theremaining advertisement budget of this firm should be fixed by ratio
of total turnover. Generally it keeps 7 to 8% of advertisement
budget of total turnover, for advertisement in T.V. they are in
contact with Mundra Advertising Agency. So advertisement plays
an important role in this firm. Publicity of product is most important
function of the company. The product is firstly known by its
advertisement and second by its quality
Advertisement is creation of demand.
For shashi industry;
You name it, we make it
Once a fictiontoday a fact
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2.8.MARKETINGSTRENGTH:
80 Nos of Field Force, 15 Nos Area Sales Managers, 4 Sales
Managers, 600 Distributors, more than 2 lakhs Retailers Talking
a Traditional Handicraft, Agarbatti creating a brand value around it,
Garnering a sizable portion of the domestic market, as well as
exporting to more than 17 countries, is a commendable feat.
Shashi Industries could produce any kind of Fragrance, required by
the market. This proves an ultimate ability to take up any
challenges.
Mr.Tusharbhai S. Vadher (M.D., Ahmadabad) monitors sales
planning with Dynamism & experience for 17 years.
PUBLICITY:-
TALK OF THE TOWN The best media experienced. Television,
Radio, Newspapers, Hoarding, Posters, Stickers, Handbills,Products Guide are means for reminders and brand awareness
used.
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3. LITRETURE REVIEW
What is a literature review?
A literature review is an evaluative report of information found in
the literature related to your selected area of study. The review
should describe, summarize, evaluate and clarify this literature. It
should give a theoretical base for the research and help you (the
author) determine the nature of your research. Works which are
irrelevant should be discarded and those which are peripheral
should be looked at critically.
A literature review is more than the search for information, andgoes beyond being a descriptive annotated bibliography. All works
included in the review must be read, evaluated and analyzed
(which you would do for an annotated bibliography), but
relationships between the literature must also be identified and
articulated, in relation to your field of research.
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3.1. Consumer Behavior
Consumer behavior and consumer decision-making have become
prominent research topics in the various fields of consumer science
in recent years (Schiffman & Kanuk, 2000). Generally, consumer
behavior is defined as: "The activities that people engage in when
selecting, purchasing, and using products and services so as to
satisfy needs and desires. Such activities involve mental and
emotional processes, in addition to physical actions" (Wilkie, 1990).
Virtually, all decisions involved in developing an effective marketingmix for a product or service rely on thorough knowledge of the
consumers who comprise the target market (Johnson & Mullen,
1990). Understanding the behavior of the consumer can help
marketers anticipate reactions to changes in the marketing mix, or
determine whether new products are likely to be adopted.
Understanding buyer behavior is one of the more perplexing tasksconfronting every business owner. The difficulty arises from the
heterogeneity of buyers, from their being groups of individuals who
differ from one another. But differences notwithstanding,
consumers do share attitudes, opinions, reactions, and desires at
various times. Business experience, marketing research,
theoretical constructs and models, and trial-and-error methods help
to find some of the common denominators. This study aims to
identify a pattern of behavior among its chosen respondents.
3.2. Factors Affecting Consumer Buying Behavior
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The consumers' perception of a product highly affects its decision
on what product to buy. The decision process is influenced by the
information available to the consumer and the way in which the
consumer processes that information. The decision process is also
influenced by the consumer's beliefs, attitudes, and intentions aswell as many other individual characteristics. Two stages in the
decision process are particularly relevant to this study: search is
whether the consumer seeks label information when selecting
products and alternative evaluation whether or not the consumer
uses label information in considering product alternatives.
Whether consumers will search for and use label information willbe influenced by both characteristics of the product and of the
buyer. Product characteristics include the extent to which the
product's probable performance can be assessed by visual
inspection and its complexity, that is, the number of decisions the
consumer is required to make about it. Consumer characteristics
include experience with purchasing the product, and the kinds of
criteria the consumer uses in judging the product. The evaluative
criteria are shaped by the consumer's beliefs, attitudes, andperception of risk in the purchase.
Research on sensation and perception, attention, categorization,
inference making, information search, memory, attitude and
behavior, attitude formation and formation, conditioning and
satisfaction have been undertaken to understand consumer
behavior (Jacobs, Latham & Lee, 1998). As stated by Cobanoglu,Ekinci and Park (2003), attitudes towards purchase behavior are
believed to be shaped by many factors such as direct experience
with the product, information acquired from others, exposure to
mass media, etc. there are other factors that affect consumer
buying behavior regardless of the nature of business, the product
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itself, customer service, and satisfaction. This study aims to identify
the presence of such factors using the case of coffee brand and
experience of Starbucks and Pacific Coffee.
3.3. Conclusion:
The main objective of this research is to identify the common factor
that affects consumer buying behavior of university students when
it comes to coffee brand and experience. Due to the increasing
competition of Starbucks and Pacific Coffee in Hong Kong, the
conveyance of this timely case study will serve as imperative
evaluation on the coffee shop business in the region as well asemerging and specific consumer culture among the chosen
respondents.
http://sampleresearchproposals.blogspot.com/2009/03/sample-
research- proposal-on-coffee.html
RESEARCH DESIGN
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&
RESEARCH METHODOLOGY
4.1. PROBLEM DEFINING
Research is based on problem. Problem identification is the firststage in research procedure. Defined problem is half solved
problem; any researcher must define a problem before he
undertakes research study.
Here, my define problem is CONSUMER BUYING BEHAVIOR I
want to know consumers behavior while buying incense stick, what
are the features they want in incense sticks, which reference groupthey affects while buying incense stick. I want to know which type
of buying behavior affects incense sticks.
I have taken this problem with the advice of Mr. Sanjeevbhai
(Marketing Manager) consumer buying behavior plays an important
role in marketing system of the product. I also want to know the
awareness of MAZA incense stick in Bhavnagar city.
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4.2. THEORY RELEVANCE PROBLEM
Buying behavior is a comparatively new field of study. The concept
buyer behavior has been gaining importance since 1960.
Understanding consumer behavior and knowing customer are
never simple. Customer may say one thing but do another. So to
know the buying behavior is very complex to anyone.
Defining of buying behavior:
All psychological, social and physical behavior of potential
customer as they become aware of, evaluate, purchase, consume
and tell other about product and services.
Buying process:
Problem Recognition
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Information search
Evaluating of alternative
Post-purchase Experience & Behavior
Purchase decision
TYPES OF BUYING BEHAVIOR
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There are four types of consumer buying behavior given as follow.
1. Complex Buying Behavior
2. Variety Seeking Buying Behavior
3. Dissonance reducing Buying Behavior
4. Habitual Buying Behavior
We can understand briefly by following diagrammatic presentation:
High Involvement
Low Involvement
Significant differences
between brands
Complex Buying Behavior Variety Seeking Buying
Behavior
Few differences between
brands
Dissonance reducing Buying
Behavior
Habitual Buying Behavior
Complex buying behavior:
Consumer buying behavior is in situations characterized by high
consumer involvement in a purchase and significant differenceamong brands. Example car, house, TV.
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Dissonance reducing buying behavior:
CBB in situations characterized by high consumer involvement butfew perceived differences among brands. Example paint,
cement.
Habitual buying behavior:
CBB in situations characterized by low consumer involvement and
few significant brand differences. Example detergent, toothpaste.
Variety seeking buying behavior:
CBB in situations characterized by low consumer involvement but
significant perceived brand differences. Example biscuit, snacks.
In the product of incense stick market where various brand of
incense stick are exist in market with high consumer involvement
and few perceived difference between brands. The price of incense
stick is low in comparison with other products so consumers easily
purchase it, so that consumer involvement is very high. Where
incense sticks market all brands have perceived difference among
them.
So, Dissonance reducing buying behavior is applicable here forincense stick brand.
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4.3. RESEARCH OBJECTIVES
The purpose of research is to discover answer of question through
application of scientific procedure. The main aim of research is to
find out the truth which is hidden and which has not beendiscovered yet. We can say that the purpose of research is to find
solution to problem in marketing field.
My objectives of study of consumer behavior in Bhavnagar are as
under:
v To know the customers behavior to incense stick.
v To know the Awareness to Maza incense stick.
v To know the influence group of customers to Incense stick.
v To know what are the features customers want in incense stick
market.
v To know the feeling of customers towards price level of incensestick.
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4.4. RESEARCH DESIGN
Research design is defined as the arrangement of conditions and
structure for collection and analysis of data in a manner that aimsto combine relevance to the research purpose with economy in
procedure.
My procedure is given below:
v TYPES OF RESEARCH
There is four types research like:
Exploratory Research
Descriptive Research
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Diagnostics Research
Casual Research
Exploratory research:-
But as far as my problem is concern, the exploratory research is
suitable. It is concern with discovering the general nature of
problem. It is more flexible and it relies on both secondary &
primary data, judgment sample, small survey and case analysis.
An exploratory research focuses on the discovery of ideas and is
generally based on secondary data. Which is already used in to
other channel through of presented the data. So that is
dependence on the kindly information to finding that the used of
research instrument process finding of particular outcome.
Descriptive research:-
A descriptive study is undertaken when the researcher wants to
know the answer of who, what, why, whom and how. That is
questionnaire used the help of research problem so that matter
wise found the right conclusion.
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4.5. DATA SOURCES:
During the in-plant training the data was collected as per the
requirement and based on questionnaires.
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The visit to different department was carried out in order to
accumulate maximum knowledge.
During the training major source of data collection were as
follow:
Primary Data
Secondary Data
Primary Data:
Primary data is fresh data collected and used first time in research.
The primary data of Shashi Industries are collected through
questionnaire method which is directly collected from relevant
respondents in Bhavnagar city. The various personal from
marketing department personally communicated as well as they
answered the various question asked by us.
Secondary Data:
As name suggest it-self secondary data means data which are
already exist somewhere. It might be used some where just we
have to collect it. The secondary data of Shashi Industries are
collected through media advertisement, companys catalogue &
poster or through website or internet.
For my problem I have collected fresh data i.e. primary data
directly from relevant respondents in Bhavnagar city
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4.6. RESEARCH INSTRUEMENT
This research is made through questionnaires. Quite often
questionnaire is considered as the heart of survey of operation. In
this method a questionnaire is given to the people concern with a
request to answer the question and return the questionnaires. A
questionnaire consists of number of questions are in define on the
form or set, the respondent have to read and understand thequestion the answer in this page meant for the purpose in the
questionnaires itself for the research when respondents need to
any kind of help the researcher was available to solve their
problem.
4.7. SAMPLING PLAN
TARGET POPULATION:
The population for this research study is
consisting of the house hold of Bhavnagar city.
SAMPLING UNIT:
In this study the sampling units is individual.
SAMPLE SIZE:
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My sample size is 100 respondents (house
hold)
SAMPLING METHOD:
The samples are selected by
using convenience sampling method. A convenience sample is
one in which the only criterion for selecting the sample unit is the
convenience of the sampler.
DATA COLLECTION METHOD:
There are so many methods for primary data collection but I have
selected the Questionnaire method to collect primary data.
However for the convenience of some respondents Schedule
method has also been used. My questions are closed endquestions.
DATA ANALYSIS PLAN:
My data analysis plan includes tabulation of collected data. I have
put data into graph and ultimately I have come to conclusion
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4.8. LIMITATION OF THE STUDY
In this project I have used the sample survey method and takingopinion of the different types of people so, this opinion may be a
wrong and may be right.
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I have done 100 people sample surveys if surveys are more
than 100 people we can get more effective research.
The geographical area was very much limited to residential area
& so the results are not particularly reflection of the current
behavior.
The major factor constraining the training programmed was the
time duration mentioned by the institute.
Even the high grade personal was enabling to spare sufficient
time because of their various organizational activities.
During the departmentation stage of the various secret
companies matter were not disclosed as it was against rules and
regulation.
The training was complained within the particular limit area so
location was the major constrain factor.
.
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DATA ANALYSIS
&
INTERPRETATION
4.9. DATA ANALYSIS & INTERPRETATION
Q. 1 which brand of incense sticks is you using?
Particular No. of respondents Percentage
MAZA 33 33%
DENIM 19 19%
SWADESH 02 02%OTHER OF SHASHI 10 10%
OTHERS 36 36%
TOTAL 100 100
Interpretation:
Out of 100 respondents 33% are using Maza brand of incense
stick 19% sample respondents are using Denim and only 02%
respondents are using Swadesh other brands of shashi like
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Camay, gulal, rose royal, jaipur, kevda, shashi sugandh, Sunday to
Sunday, cool breeze, and so on Have only 10% respondents 36%
of the total respondents are using other brands.
We can say that Maza is leading brand of shashi industries. Itincludes all versions of Maza brand like 10 sticks, 30 sticks, 100
sticks, etc.
By observation I can say that the consumer is flexible in using
incense stick, there for sometimes 36% other brand user might be
using shashi industries various brands. So, this can be a limitation
to the study.
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Q. 2 what is the price level of brands you are using?
Particular No. of respondents Percentage
1 to 10 22 22%
11 to 20 58 58%
21 to 30 08 08%
Above 30 02 02%
Not decided 10 10%
Total 100 100
Interpretation:
Out of 100 respondents 22% respondents are using incense stick
which price is Rs. 1 to 10 per pack 58% respondents are using
pack which price is between Rs. 11 to 20. Only 8% respondents
some of high class people are using high priced brand i.e. above
Rs. 30 they are 2%
Most of the respondents are using incense stick which price is
between Rs. 11 to 20. They might be medium class people and
10% respondents have not decided the price. Their tendency toprice is flexible. Some time they use high price brand & some time
low priced brand.
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Q. 3 Are you aware of Maza incense stick of shashi
industries?
Particular No. of respondents Percentage
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Yes 92 98%
No 08 02%
Total 100 100
Interpretation:
Out of 100 respondents 92% say that they have heard the name of
Maza incense stick. Only 8% are not aware of Maza incense
stick.
From the above interpretation we can say that, there is good
awareness about Maza incense stick in Bhavnagar city. This is
because, that the Maza brand is one of the oldest brand of the
shashi industries. The awareness may be 100% because in my
study only 100 respondents are there in sample size and
Bhavnagar is one of the large city in Gujarat, so we cannot get
much accuracy with low sample size.
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Q. 4 Who advise you to buy incense stick?
Particular No. of respondents Percentage
Dealers 04 4%
Friends 05 5%
Relatives (family) 33 33%
Others 17 17%
N.A. 41 41%
Total 100 100%
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Interpretation:
41% respondents in Bhavnagar city are purchasing incense stickby themselves, 33% respondents are affected by their family
relatives, only 5% says that they are being advised by their friends
and 4% affected by their dealers.
Most of the respondents i.e. 41% are purchasing incense stick by
themselves. No one advise them to buy incense stick. They take
their own decision while second largest influences are relatives that
are family members. Dealers and friends play a very little role in
consumers decision making.
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Q. 5 which features will you keep in mind while purchasing
incense stick first?
Particular No. of respondents Percentage
Smell 71 71%
Promotional scheme 04 4%
Packing 02 2%
Quality 17 17%
Others 06 6%
Total 100 100%
Interpretation:
Out of 100 respondents 71% respondents give more emphasis to
smell of the incense stick. Only 4% people want promotional
scheme as a leading features. Packing also gets low response i.e.
2%. On the other hand quality of incense stick got 17%
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respondents in its favour while 6% people make tick mark on
others.
From above Table and interpretation I can say that smell play an
important role in incense stick. Most of the people wants good
fragrances in incense sticks while quality is second major role
player.
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Q. 6 From where do you buy incense stick?
Particular No. of respondents Percentage
Provision store 89 89%
Sales persons 11 11%
Total 100 100%
Interpretation:
Out of total 100 respondents, 89% respondents purchase incense
stick from the provision stores and 11% from sales persons.
Therefore we can say that most of the people give importance toprovision stores. This is because, that unskilled salesman cant
convince the consumers properly and skilled or professional
educated person do not like to work on door to door selling.
Therefore the people do not trust on sales person and the quality
sold by them.
The ratio of provision store to sales person is 89: 11; therefore thefirm should give more emphasis on retailer and wholesalers in
distribution channel.
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Q. 7 According to you, what should be the price of single pack
with 30 sticks?
Particular No. of respondents Percentage
Rs. 1 to 10 28 28%
Rs. 11 to 20 64 64%
Rs. 21 to 30 08 08%
Above 30 00 00%
Total 100 100%
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Interpretation:
28% respondents want the price to be in between Rs. 1 to 10. 64%
respondents say that it should be in between Rs. 11 to 21. While
Rs. 21 to 30 ranges and above Rs. 30 get 8% and 0%
respondents.
Most of the people in Bhavnagar city want that price of the single
pack of incense stick with 30 sticks should be in between Rs. 11 to
20.
Shashi industry is providing 30 stick Maza brand in this range.
Therefore it is good for an industry. It is obvious that the price of 30
stick packet should not be above Rs. 30 because it would be very
high compared to quantity of stick. The quantity, quality and price
should be appropriate and proportional.
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Q. 8 Do you find any confusion in purchasing due to number
of brands in the market?
Particular No. of respondents Percentage
Yes 53 59.55%
No 36 40.45%
Total 100 100%
Interpretation:
Out of 100 sample size, 89 respondents have given the answer of
this question. I think 11% could not understand the question or
there might be other reasons. Therefore I have got 89 responses to
this question.
Out of 89 respondents 53 respondents said Yes and 36
respondents said No. from these I can say that 59.55% (i.e.60%)
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people finds confusion in purchasing incense stick due to number
of brands exist in the market. And 40.45% (i.e.40%) people do not
find any confusion in purchasing.
From these I find that consumers behavior regarding incense stick
is somewhat Dissonance reducing due to high involvement of
brand & few differences between brands.
FINDINGS & CONCLUSION
I have drawn following conclusions from the study.
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Most of the consumers are middle class people (from
occupation)
I found that Maza is leading brand, while second leader is
Denim and other brand of shashi industries has very little market
share.
Most of the people of city are using incense stick pack which
price is between Rs. 11 to 20. Some people are flexible in price
level. It means sometimes they are using high priced items and
sometimes low priced.
Awareness of Maza brand is excellent. It is very popular brand
in Bhavnagar city.
Most of the people who purchase incense stick take decision
by themselves, but family, relatives also play an important role.
Elder persons play a very important role in purchase of incense
stick than younger boys.
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Smell is the most leading features in incense stick. More than
seventy percent people want good quality.
Majority of the people are buying incense stick from provision
stores, while only 11% people get it from sales persons.
According to my sample study 64% respondents said that price
of single pack with 30 sticks should be in between Rs. 11 to 20 and
this is the highest response.
Round about 60% people find confusion in buying incense stick
due to number of brands exist in the market. Therefore I can say
that buying behavior is somewhat Dissonance Reducing.
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SUGGESTIONS
After drawing conclusion and studying data analysis, I would like to
suggest some points as under:
Maza and Denim are leading brands so the firm should do lineextension or product extension. It means company should expand
product category under these brand name.
Company should adopt Middle value pricing strategy. It means
company should mostly produce incense stick packages which
price is between Rs. 11 to 20.
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Some of the products of the firm are still in introduction stage,
so they concentrate attention on marketing & promotional mix of
those products.
In developing products company should take opinion of elder
persons who are generally up to 40 years old or more regarding
the types of smell and other feature because mostly they affect the
purchase of incense stick.
The firm should try to add better smell to an incense stick as
people like it the most.
The buying behavior is somewhat Dissonance Reducing so;
the firm should try to make difference in brands and try to stress
that difference in promotional mix and advertising.
In distribution, the firm should be more emphasize to retailer
and wholesaler than salesman.
Regarding Maza the firms marketing objective should
maximize profit while defending market share.
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The firm should try to find maximum innovators to the Maza
brand. Firms some products are in declining stage, they should be
phased out.
BIBILIOGRAPHY
Marketing Management (Reference book) Philip Kotler
Shashi industrys office, darbari kothar, Bhavnagar.
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Company
website: http://shashiind.com/about_market.as
p
http://sampleresearchproposals.blogspot.com/2009/03/sample-
research-proposal-on-coffee.html
QUESTIONNAIRE
Name:
Address:
Age: Sex:
Occupation: Phone:
1. Which brand of incense stick you are using?
Maza [ ] Denim [ ] Swadesh [ ]
Others of shashi [ ] others [ ]
2. What is the price level of brand you are using?
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1 to 10 [ ] 11 to 20 [ ] Undecided [ ]
21 to 30 [ ] above 30 [ ]
3. Are you aware of Maza incense stick of shashi industries?
Yes [ ] No [ ]
4. Who advised you to buy incense stick?
Dealer [ ] friends [ ] Self [ ]
Relatives [ ] others [ ]
5. Which features will you keep in mind while purchasing Incense
stick first?
Smell [ ] Quality [ ] Packing [ ]
Promotion scheme [ ] Others [ ]
6. From where do you buy Incense stick?
Provision store [ ] Sales person [ ]
7. According to you what should be the price of single pack with 30
stick?
1 to 10 [ ] 11 to 20 [ ]
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21 to 30 [ ] Above 30 [ ]
8. Do you find any confusion due to number of brand in the market(while purchasing)?
Yes [ ] No [ ]
Date: Signature
Place: