A Study determining the Consumption Pattern for Milk. Priti Bhanushali, Payal Bhanushali and Prof.Donna Sebastian

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1 Reflections Journal of Management (RJOM) Volume 6, January 2017 Available online at: %20Journal%20of%20Management/showToc A Study determining the Consumption Pattern for Milk Priti Bhanushali, Payal Bhanushali and Prof.Donna Sebastian Abstract: The research paper talks about how product attributes and demographic variables effect the decisions of consumers towards the purchase pattern of milk. The data was collected from sixty respondents across various age groups, income level, gender, occupation s, family size, consumption pattern of milk, cheese, butter and ice-cream, amount spent on consumption of milk products, likes, taste, reasons for consumptions, etc. Milk is more of a regular use product and used in various forms for many occasions. Hence, from the following research it is found that Amul brand has a higher usage rate as compared to other brands of milk. INTRODUCTION: Milk is one among the most complete food item because of its great nutritional value as it contains a variety of nutrients. These nutrients in milk help make it nature s most nearly perfect food. Improving the human nutritional value plays an important role in order to achieve food security. Dairy products have a unique contribution to nutritional as well as health value to every household member. These days there is a rapid population growth and urbanization in the country. Moreover, the income of the urban dwellers (people living in city) is growing. These factors have played an important role in increasing the demand for dairy products especially in urban areas. The demand for dairy product depends on consumer preference, consumer s income, and population size, price of the product, substitutes and other factors. Increasing population growth, rising real income are the major factors that are expected to increase the demand of dairy products and have changes on consumption patterns of the people for dairy products. Though in India there is a greater potential for production of dairy products, there is limited organized information on consumption pattern (the combination of the type, quantities and frequencies of dairy products consumption) and the difficulties associated with consumption of milk and milk products. Growing health consciousness, increasing income and healthy innovations in dairy products that suits the current lifestyle trends are expected to drive the global demands of dairy products during the next five years. In India about 46percent of the total milk produced is consumed in liquid form. From that 47 percent of milk is converted into traditional products like butter, ghee, paneer, khoya, curd, malai, etc. Of these ghee alone accounts for 85%. The remaining 54% is utilized for conversion to milk products, powders, malted milk food, condensed milk, infant s milk foods etc.

2 LITERATURE REVIEW: According to, V. Kubendran, T.Vanniarajan; India ranks second in the world in milk production. With a constant increase in disposable income among the strong middle income class, the scope for marketing of milk is wider. Demand for milk and milk products depend on various factors such as consumer s willingness and capacity to buy. The consumers are not homogeneous, the consumption pattern of milk likes quantum of purchase, mode of purchase, sources of purchase, brand preference etc. are changing from consumer to consumer. The socio-economic profile of the consumer namely income status, occupational position, educational level and demographic factors like age, gender, family size and geographical location are the major determinants of the consumption pattern of milk. According to Meena Mehta; Milk and milk products have traditionally formed an important part of average Indian diet. The consumption of milk is 46% of the total production of milk while remaining milk is consumed as milk products. Amongst the milk products ghee is to almost 28%. According to Samadhan.K.Khamkar, Indian Milk Product Mix Fluid Milk 46.00% Ghee 27.50% Butter 6.50% Curd 7.00% Khoa(Partially Dehydrated Condensed Milk) 6.50% Milk Powders(Including IMF) 3.50% Paneer & Chhana (cottage cheese) 2.00% Others including cream, Ice Cream 1.00% (Source: Office of the Economic advisor, Ministry of Commerce and Industry) The above table displays the various types in which milk is consumed in Indian households. RESERCH OBJECTIVE: The Main objective of the paper is to study the consumption patterns and spending habits of consumers on milk and dairy products. The other objectives are: To study the consumption pattern of milk. To study the spending habits of consumers on milk. To study factors that influences the consumption pattern of milk.

3 RESEARCH METHODOLOGY: Research design: The first phase of this research was exploratory in which secondary data was obtained regarding consumption pattern of dairy products. The second phase was descriptive part of research which included gathering of primary data which was important for understanding the consumption patterns and factors influencing the consumption pattern of milk. The research paper is based on descriptive research. Various statistical tools were used ranging from Chi-square, P-test, T-test, etc. Data sources: Data was collected using two sources i.e. Primary data and secondary data. Primary data was collected by E-forms that are Questionnaire that were mailed to 60 respondents. Secondary data was collected using various Internet Search Engines and through journal and other publications. Sampling Size The Basic sampling procedure for the study, we have made the decision to carry out 50 respondents and they were selected on randomly. They Study was carried out in Mumbai as a small scale. Data Type and Source The data includes primary sources collected through the collection of data from students, working professionals, housewives through Google Forms; the secondary data used is for creating the questionnaire and the process of executing the study. Contact Methods: s, Social Networking Sites Sampling: The research gave equal importance to males and females.number of Males respodents was 26 and Female respondents was 34. Number of family memebers has a influence on the consumption pattern and amount spent on the dairy products.more number of family memebers can increase the spending on the dairyprodcuts

4 Descriptive Analysis Gender 43% MALE Female Male 57% FEMALE In terms of gender proportion of females is greater than that of males,which means the data is baised towards females. 22% 5-11 MEMBERS NO.OF FAMILY MEMBERS 5% NOT REPLIED 73% 1-5 MEMBERS 1-5 members 5-11 members Not repleyed 73 % of family have 1-5 members in the family.this shows that consumption pattern and average spending on milk can effect the consumption.

5 FINDINGS OF THE STUDY: 1)The study of 60 respondents has findings on the consumption pattern of milk regarding it to be hot or cold.the research states that the number of people consuming cold milk is more compared to number of people who consume hot milk but with very little variance. Consumption style (blank) 2% Hot milk 43% Cold Milk 55% Cold milk 33 Hot milk 26 (blank) 1 Grand Total 60 2) The research states that 75% of respondents have milk with sugar.sugar froms an important part in ones daily diet in order to preform various activities and it is consumed with milk,tea or coffee. 75% WITH SUGAR Total Milk with Sugar 25% WITHOU T SUGAR No Yes Milk with No. Sugar Respondents No 15 Yes 45 Grand Total 60 of

6 HYPOTHESIS TESTING : HYPOTHESIS TESTING 1 H O :Average amount spend on consumption of milk is less than or equal to Rs.1200 per month. H A: Average amount spend on consumption of milk is more than Rs.1200 per month. TESTING USING T- TEST N A T T HO HA TEST TEST µ 1200 X' 1,388 t-test: Paired Two Sample for Means µ>1200 µ 1200 Variable RIGHT TAIL S Variable 1 2 t TEST N 60 Mean A P ALPHA=1% PROBABILITY % X'-µ 188 SQRT(N) 7.75 Variance Observations C T-CRITICAL O T-OBSERVED X'-U 188 S/SQRT(N) 87 Pearson Correlation #DIV/0! Hypothesized Mean Difference 0 P P VALUE 0.07 A ALPHA 0.01 D DECISION P VALUE IS GREATER THAN ALPHA FAIL TO REJECT THE NULL. df 59 t Stat P(T<=t) one-tail t Critical one-tail P(T<=t) two-tail t Critical two-tail Business Decision: In this test, we found that the average amount spent on consumption of milk is more than 1200 per month; therefore this shows that people consume more of liquid milk as compared to other dairy products in an household. So companies should create more liquid milk in order to target their audience.

7 HYPOTHESIS TESTING-2 H O : More than 80% of people consume milk with sugar. H A : Less than 80% of people consume milk with sugar. TESTING USING P-TEST N NULL H O :P>80% p' 75% A ALTERNATIVE H A :P<80% p 80% T TEST LEFT TAIL q 20% T TEST P-TEST p*q 0.16 A ALPHA 0.01 p'-p -5% P PROBALITITY 0.01 n C CRITICAL (2.33) sqrt(n) 8 O OBSERVED (2.42) P P VALUE A ALPHA D DECISION P value is less than alpha. Reject null (2.42) 2.33 Business Decision: According to this analysis less than 80% of people consume milk with sugar; this proves that consumers are more health conscious. Hence, focus should be placed on sugar free milk beverages which will attract more customers to purchase the product.

8 HYPOTHESIS TESTING-3 H O : Type of milk consumed is independent of Gender. H A : Type of milk consumed is not independent of Gender. CHI- SQUARED TEST Type of milk Female Male Grand Total Fortified milk 1 1 2% Full cream milk % Skimmed milk % Toned milk % Whole milk % (blank) % Grand Total % Type of milk Female Male Grand Total Fortified milk Full cream milk Skimmed milk toned milk Whole milk (blank) Grand Total Type of milk Female Male Grand Total Fortified milk Full cream milk Skimmed milk toned milk Whole milk (blank) Grand Total

9 N A T Chi-Squared T Right tail A 99% R 1% C O P 0.07 alpha 0.01 df=(c-1)*(r-1) 10 AR failed to reject the null HA: TYPE OF MILK CONSUMED IS INDEPENDENT OF GENDER. HO: TYPE OF MILK CONSUMED IS NOT INDEPENDENT OF GENDER Business Decision: As the analysis shows that consumption of milk is independent of gender, so the companies should create more brand loyalty among the customers during the same period so as to retain the customers and so that the existing customers do not switch brands.

10 CONCLUSION: The research paper reaffirms that spending habits of consumers depends on factors like age, gender, employment status, professions, income level, family size, availability of the products, and awareness about the product. The product which is well marketed has a higher preference. From the research analysis conducted, AMUL has the highest brand loyalty.the paper reveals that the spending on Amul is higher as compared to any other brands of dairy products. The study also states that customers are getting health conscious and 80% of people consume milk with sugar so company focus should made on the sugar-free milk products and health drinks. Brand managers should focus on building brand loyalty among their existing consumers and also convert potential customers into new customers. Other factors that affect the spending and consumption patterns is availability of the products, flavor and overall quality of the products. LIMITATIONS: The findings of the study may not be applicable to the general population due to the nonprobabilistic type of sample. The sample selected in the manner may not to be representative of the behavior of the population. Time constraints, sample size, respondent biasness and geographical limitations were the concerns. The entire study was conducted online through E-forms so offline user responses were not part of the research. Only certain parameters have been taken into consideration. The sample size was a convenient sample, with most of the respondents being students. The survey was conducted in a small locality in Mumbai; so other parts of Mumbai were ignored. It was also conducted online, thus all the other forms of offline survey were ignored.

11 REFERENCES [1] [2] V. Kubendran, T.Vanniarajan-Indian Journal of Marketing, 2005;"Comparative Analysis of Rural and Urban Consumers on Milk Consumption ; Vol 35, No 12(2005), Published on : [3] Mehta, Meena (2013). Consumption pattern and fatty acid composition of ghee. Food Sci. Res. J., 4(2): [4] Samadhan. K. khamkar,the Consumption Pattern of Dairy Products by Indian Consumers since 2000.Asian Journal of Management Sciences.02(03 Special Issue);2014;170-17