Bismi.docx

MINI PROJECT STUDY ON BRAND LOYALTY AMONG QUAKER OATS USERS WITH SPECIAL REFERENCE TO KOLLAM CITY

BY BISMI MOL N

DECLARATION

I hereby declare that “A STUDY ON BRAND LOYALTY OF QUAKER OATS USERS AMONG SPECIAL REFERENCE TO KOLLAM CITY “is the result of the project work carried under the guidance of Prof.ANIL G.S in partial fulfilment for the award of Master‟s Degree in Business Administration by APJ Abdul Kalam Technological University

Bismi mol n Place : kollam Date : 9/1/19

ACKNOWLEDGEMENT

A report on “A STUDY ON BRAND LOYALTY OF QUAKER OATS USERS AMONG SPECIAL REFERENCE TO KOLLAM CITY“ would not have been successful without support and cooperation of different personnel who provided valuable comments and contribution. Firstly I would like to express my sincere gratitude to Bishop Jerome Institute Of Management who gave us the opportunity to do the research project. I extend my sincere thanks to Prof. ANIL G S who guided us throughout our project and encouraging us to carry out the project. His suggestions and instructions have served as the major contribution towards the completion of the project. I would like to offer my sincere thanks to all the respondents who gave all their valuable time and effort to complete our project. Finally I would like to thank all faculty, friends, and each and every person who directly or indirectly helped me in preparation of this project.

CHAPTER I INTRODUCTION Berry (2000) claimed that branding is regarded as the cornerstone in 21st century while taking service marketing domain into consideration. Today's researchers declared brand as the most influential character in services because of its innate distinctiveness like perishability, inseparability, tangibility and heterogeneity (Kapferer, 2004). A brand is a name, term, design, symbol, or other feature that distinguishes one seller’s product from those of others. Brands are used in business, marketing, and advertising. Branding is a set of marketing and communication methods that help to distinguish a company from competitors and create a lasting impression in the minds of customers. The key components that form a brand's toolbox include a brand’s identity, brand communication (such as by logos and trademarks), brand awareness, brand loyalty, and various branding strategies. Brand equity is the measurable totality of a brand's worth and is validated by assessing the effectiveness of these branding components. In a fleeting market where traditional linear models of business are being replaced by more radical interconnected models, brand equity is one marketing technique that remains firmly rooted in prosperity. To reach such an invaluable brand prestige, requires a commitment to a particular way of doing business. A corporation who exhibits a strong brand culture is dedicated on producing intangible outputs such as customer satisfaction, reduced price sensitivity and customer loyalty. A brand is in essence a promise to its customers that they can expect long-term security, a competitive frame of reference and consistent delivery of functional as well as emotional benefits. When a customer is familiar with a brand or favours it incomparably to its competitors, this is when a corporation has reached a high level of brand equity. Brand loyalty is defined as positive feelings towards a brand and dedication to purchase the same product or service repeatedly now and in the future from the same brand, regardless of a competitor’s actions or changes in the environment. It can also be demonstrated with other behaviours such as positive word of mouth advocacy. Brand loyalty is where an individual buys products from the same manufacturer repeatedly rather than from other suppliers. Brands can

have the power to engage consumers and make them feel emotionally attached. A critical factor of building brand loyalty is developing a connection or relationship between the consumer and the brand. When an emotional relationship is created between the consumer and the brand this leads to a strong bond and a competitive advantage for that particular brand. Loyalty consists of both attitudinal and behavioural components. Attitudinal loyalty relates to the customers willingness to purchase product or service from the brand at any reasonable cost. Behavioural loyalty is the re-purchasing. Both behavioral and attitudinal components are important. Brand loyalty has shown to profit firms by saving them a lot of money. Benefits associated with loyal consumers include: 

Acceptance of product extensions.



Defense from competitors cutting of prices.



Creating barriers to entry for firms looking to enter the market



Customers willing to pay high prices.



Existing customers cost much less to serve.



Potential new customers.

Generally speaking, brand loyalty will increase profit over time as firms do not have to spend as much time and money on maintaining relationships or marketing to existing consumers. Loyal long-term customers spend more money with a firm. In India, we can say that the branding concept has helped the business and industrial sectors. Once loyal to a brand, affluent Indian consumers become dedicated customers and score significantly above the global average when it comes to attitudes towards loyalty programmes presenting many opportunities to the marketers. The recent increase in brand loyalty of customers has helped in the growth of many industries in India especially the food sector. The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year. In India, the food sector has emerged as a high-growth and high-profit . sector due to its immense potential for value addition, particularly within the food processing industry The food industry, which is currently valued at US$ 39.71 billion! is expected to grow at a Compounded Annual Growth Rate (CAGR) of 11 per cent to US$65.4 billion by 2018. The

Indian food processing industry accounts for 32 per cent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. It contributes around 14 per cent of manufacturing Gross Domestic Product (GDP), 13 per cent of India’s exports and six per cent of total industrial investment. One of the most famous companies producing oats is the Quaker Oats Company also known as Quaker. It is an American company based in Chicago and also is among the largest cereal manufacturers in the world. The brand claims to be present across the globe for more than a century and is world’s 1st cereal brand. Since 1877, the brand’s presence is based on its mission to spread fitness and health awareness among the masses by offering them the goodness of their superior quality oats. During the twentieth century, Quaker Oats has diversified its products beyond its original oats. In 2004, the company produced various cereals, breakfast bars, pancake mixes, rice, pastas, and snack foods. Quaker Oats was launched in India in 2006. In 2009, Quaker launched a mission to make India heart healthy and has been massively advertising about the benefits of oats for people of every age with or without suffering from any health disorder. In the last two years, the brand has come up with various flavours to tap people of different segments who prefer to make oats, a tasty meal.

1.1Objective of the study 

To study about the brand loyalty of users of Quaker Oats



To know about the customer satisfaction regarding the product



To understand the problems faced by the consumers



To assess the influence of Quaker Oats in the recent years.

1.2 Statement of the problem The unique manner in which a section of Indian consumers consume oats has extended the window of opportunity for marketers who are now rolling out savoury varieties of the cereal. Across the country, oats are primarily consumed at breakfast and more and more consumers are realizing its benefits of both nutrition and convenience. South Indian homes seem to have

warmed up to oats at their breakfast table more than North Indians. Nearly half of the families in Kerala, for instance, consume oats for dinner, according to a Nielsen India report. Kerala, being the biggest market for oats, could be setting a precedent of sorts in a country where multinationals have had to tweak their global strategies to suit local tastes. Even though the oats category has witnessed a phenomenal growth, a large section of the Indian society may be aware of it but have not yet started consuming it. This segment of consumers is well aware that eating oats is good for health and weight management, but shy away from it as they don't find it tasty. There is still another section of society who is not aware of oats due to its low penetration especially in the rural India. Oats is still a nascent category in India but the fastest growing within the breakfast category. Quakers was expanding its product portfolio through offerings that were affordable and meet changing consumer needs. The company is betting big on flavoured oats such as Homestyle Masala and Lemony Veggie Mix, Strawberry with real Apple and Kesar with raisins thus fighting the challenges faced due to the taste preferences of Indian consumers. The purpose of the study is to find out about the brand loyalty of users of Quaker Oats, one of the famous cereal brand in kollam as there is a recent increase in the consumption of oats among the society of Kerala.

1.3Research Methodology Research methodology is a way to systematically solve a research problem. It includes research design, sampling procedure, method of collection of data and its analysis.

1.3.1 Research Design Research design used in this study is descriptive in nature, that is a study which wants to portrait the characteristics of a group of individual situation.

1.3.2 Sampling Design A sampling design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure, the research would adopt in selecting items for the sampling. The sampling techniques which was used in this study was random sampling. Random sampling is a method in which the entire unit in the population under study have an equal chance of selection as the samples are selected at random. 1.3.3 Sample Population Customers of Quaker Oats are taken as the universe or population for the study of kollamCity. 1.3.4 Sample Size 100 respondents were taken as samples from general public. 1.3.5 Data Collection In this study, two methods of data collection has been used - primary and secondary Primary Data: Primary data refers to the data that are collected through first hand investigation. The primary data for the study was collected by the way of questionnaire and direct interview. Primary data for the study was collected by using structured interview schedule. Interview schedule involves standard questions and blank tables that are filled up.

Secondary Data Secondary data refers to the second hand data which were already collected by some other person. Secondary data for the study was collected from journals, newspaper articles, reports, business magazines and websites.

The interview schedule is administered among the customers who use Quaker Oats products. 

processing Data - editing, coding, classification



Data Analysis - The data are analysed by using different mathematical and statistical tools such as bar diagram, pie diagram etc.

Overview of research methodology Research Type : Descriptive Research Sample Area : KOLLAM City Sample Unit : General public Sample Size : 100 respondents Sample Method : Random Sampling Primary Source : Interview Schedule Secondary Source : Books, Journals, Articles, Online sources Research Tool : Percentage Analysis Research Instrument : Interview Schedule Diagrammatical Representation : Bar graph, pie chart

1.3.6 Period of study The study was conducted for a period of -2018 1.3.7 Limitation of the Study 

Lack of time for an extensive study.



Study is restricted to only a selected area and thus findings cannot be generalised.



Opinions of the respondents can be prejudiced or biased.



Lack of awareness regarding the product among the consumers.

1.3.8 Chapterisation Chapter I

- Introduction

Chapter II - Literature review Chapter III - Theoretical frame work Chapter IV - Data Analysis and Interpretation Chapter V

- Findings, Suggestions and Conclusion

CHAPTER 2 Review of Literature 

Consumer behaviour towards food products with special reference to Oats in Erode District (March 2016) by R. Abirami, Dr. S. Thenmozhi :

The main objective of this paper is to analyze the satisfaction level of a customer in using oats and to give valuable suggestions to improve the level of satisfaction among people in erode city of Tamil Nadu. The findings of the study is that even though the price of the oats is high it gives better quality, which is considered to be one of the important criteria for satisfaction. The suggestions stated by the authors is that nowadays the sales strategy is moving towards giving free gifts, offers etc., for the products. Hence the manufacturer should give gifts or offers apart from charging reasonable price. The manufacturers should also take appropriate steps to reduce the price of the product. As the electronic media plays an imperative role in the successful marketing of products, the manufacturers can concentrate more on advertisements. 

A case study of the incidence of brand loyalty among consumers of cereal foods (March 2010) by Rohit K. Sharma and Peter Samuel :

The study sought to know the existence and extent of brand loyalty among consumers of cereal foods, to determine influence of prices of the products on brand loyalty, and to ascertain the influence of company image and brand name on brand loyalty. The findings made by the author were that the consumers of cereal foods were, to a reasonable extent loyal to particular brands. Price of the various brands exerts a significant influence on the loyalty of consumers. Further brand name was an important influence on consumers loyalty to particular brands. The suggestion stated that existing brands will need to exert more than average effort to increase their market share. Companies should ascertain what about their brands are of utmost importance to consumers and exploit it to build the loyalty of consumers. Effort should be increased on the local sourcing of raw materials so that price of products can be kept at affordable level thereby encouraging brand loyalty.



A Study of Consumer Behaviour Towards Branded Food Products in Urban and Rural Areas in India (June 2014) by Reetika Gupta, Dr. V. K. Jain :

The study revolves around the behaviour of the consumer for branded food products in urban and rural areas and to highlight the differences in the perception of the consumers in these areas. Objectives of the study were to understand the behaviour of the consumers towards branded food products, to study brand preference and factors which contribute to

the choice of a

particular food brand and to examine consumer’s overall awareness of various brands available in the market. The conclusions that can be drawn is that majority of the consumers have positive behaviour towards branded food products and prefer those brands of food products, which are of reasonable price, good quality and satisfy their needs and wants. Qualities like reasonable price, easy availability of the product,

matching consumers’ needs etc. are the most demanding

expectations of the consumers.



Corporate Branding, Emotional Attachment and Brand Loyalty: The Case of Luxury Fashion Branding (May 2016) by Mula Nazar Khan, Sufyan Rasheed :

The purpose of this study is to investigate the impact of corporate branding on brand loyalty with the mediating effect of emotional attachment in the luxury fashion market. This study says that corporate branding efforts have a role, thought limited, in building customer emotional attachment and loyalty towards luxury brands. It also helps in assisting the managers to allocate resources which contribute to progressive loyalty. Findings from this study provide a guide to manage branding strategies so that customer emotional attachment and brand loyalty can be built in a cost-effective

manner. The study shows that corporate branding has limited

effectiveness on customer emotional attachment. According to the suggestions given in the study, luxury brands are required to continuously convey superior functional benefits and symbolical benefits to build stronger emotional attachments towards brands to achieve brand loyalty.

CHAPTER 3 BRAND LOYALTY - A THEORETICAL FRAMEWORK It is always cheaper to retain existing customers than it is to acquire new customers, and brand loyalists aren’t just repeat purchasers. They’re also vocal brand advocates that create word-ofmouth marketing which turns into new business. Building brand loyalty should be a strategic imperative for every business. Brand loyalty occurs when a customer chooses to repeatedly purchase a product produced by the same company instead of a substitute product produced by a competitor. For example, some people will always buy Coke at the grocery store, while other people will always purchase Pepsi. By definition, brand loyalty is the consumer’s emotionally-charged decision to purchase a specific brand again and again. The consumer perceives that the brand meets their expectations and identifies with the consumer on a personal level. This buying behavior and decision-making process can be conscious or unconscious, but it is always based in trust that the brand will deliver on the consumer’s expectations for it. Brand loyalty is often based upon perception. A consumer will consistently purchase the same product because she perceives it as being the superior product among the choices available. You should note that brand loyalty usually relates to a product, not a company. For example, while you may be loyal to your Honda Accord, but when it comes to motorcycles, you might believe that a Harley leaves a Honda motorcycle in the dust.

Brand loyalists don’t purchase a substitute brand if their preferred brand isn’t available. They’ll travel to multiple stores in search of their preferred brand and are more likely to forgo making a purchase if their brand cannot be found than they are to purchase a substitute. Brand loyalty is based on an emotional involvement that develops between the consumer and the brand. The consumer’s perception is that the brand fulfills some kind of physical need or emotional want in such a unique way that some kind of emotion is evoked during the purchase process and while using the brand. It’s that emotional connection to a brand that separates brand repurchases from brand loyalty. A powerful brand with a loyal consumer audience behind it can withstand any micro- or macroenvironmental factor thrown at it. Whether there is a recession at the macro-level or a corporate re-organization at the micro-level, brand loyalists will keep on buying the brands they love. The Toyota recalls of 2010 provide the perfect example of a brand that survived and continued to thrive despite micro-environmental factors because consumers still trusted the brand and remained loyal to it. BRAND

A brand is seen as an idea or concept, not a product. This concept of a brand displays imagery and symbolism for a product or range of products. Brands can have the power to engage consumers and make them feel emotionally attached. Consumer’s beliefs and attitudes make up brand images, and these affect how they will view brands they come into contact with. Brand experience occurs when consumers shop for or search for, and consume products. Holistic experiences such as sense, relation, acting and feeling occur when one comes into contact with brands. The stronger and more relational these senses are to the individual, the more for likely repeat purchase behaviour will occur. After contact has been made, psychological reasoning will occur, followed by a buy or not-buy decision. This can result in repeat purchase behaviour, thus incurring the beginning of brand loyalty. Brand loyalty is not limited to repeat purchase behaviour, as there is deeper psychological reasoning as to why an individual will continuously re-purchase products from one brand. Brand loyalty can be shortly defined as the behavioural willingness to consistently maintain relations with a particular brand. Brand elements Brands typically comprise various elements, such as:          

name: the word or words used to identify a company, product, service, or concept logo: the visual trademark that identifies a brand tagline or catchphrase: "The Quicker Picker Upper" is associated with Bounty paper towels graphics: the "dynamic ribbon" is a trademarked part of Coca-Cola's brand shapes: the distinctive shapes of the Coca-Cola bottle and of the Volkswagen Beetle are trademarked elements of those brands colors: the instant recognition consumers have when they see Tiffany & Co.’s robin’s egg blue (Pantone No. 1837). Tiffany & Co.’s trademarked the color in 1998. sounds: a unique tune or set of notes can denote a brand. NBC's chimes provide a famous example. scents: the rose-jasmine-musk scent of Chanel No. 5 is trademarked tastes: Kentucky Fried Chicken has trademarked its special recipe of eleven herbs and spices for fried chicken movements: Lamborghini has trademarked the upward motion of its car doors

Corporate brand identity Brand identity is the embodiment behind a corporation's reason for existence. Simply, the brand identity is a set of individual components, such as a name, a design, a set of imagery, a slogan, a vision, etc. which set the brand aside from others. In order for a company to exude a strong sense of brand identity, it must have an in-depth understanding of its target market, competitors and the

surrounding business environment. Brand identity includes both the core identity and the extended identity. The core identity reflects consistent long-term associations with the brand; whereas the extended identity involves the intricate details of the brand that help generate a constant motif. According to Kotler et al. (2009), a brand's identity may deliver four levels of meaning: 1. attributes 2. benefits 3. values 4. personality A brand's attributes are a set of labels with which the corporation wishes to be associated. For example, a brand may showcase its primary attribute as environmental friendliness. However, a brand's attributes alone are not enough to persuade a customer into purchasing the product. These attributes must be communicated through benefits, which are more emotional translations. If a brand's attribute is being environmentally friendly, customers will receive the benefit of feeling that they are helping the environment by associating with the brand. Aside from attributes and benefits, a brand's identity may also involve branding to focus on representing its core set of values. If a company is seen to symbolise specific values, it will, in turn, attract customers who also believe in these values. For example, Nike's brand represents the value of a "just do it" attitude. Thus, this form of brand identification attracts customers who also share this same value. Even more extensive than its perceived values is a brand's personality. Quite literally, one can easily describe a successful brand identity as if it were a person. This form of brand identity has proven to be the most advantageous in maintaining long-lasting relationships with consumers, as it gives them a sense of personal interaction with the brand Collectively, all four forms of brand identification help to deliver a powerful meaning behind what a corporation hopes to accomplish, and to explain why customers should choose one brand over its competitors.

WHY IS BRAND LOYALTY ESSENTIAL? Brand loyalty in marketing, consists of a consumer’s devotion, bond, and commitment to repurchase and continue to use a brands product or service over time, regardless of changes with competitors pricing or changes in the external environment. Brand loyalty reflects a customer's commitment to remain in a relationship for a long period of time with a brand (So, Andrew & Yap, 2013). A critical factor of building brand loyalty is developing a connection or relationship between the consumer and the brand. When an emotional relationship is created between the consumer and the brand this leads to a strong bond and a competitive advantage for that particular brand. Loyalty consists of both attitudinal and behavioural components. Attitudinal loyalty relates to the

customers willingness to purchase product or service from the brand at any reasonable cost. Behavioural loyalty is the re-purchasing. Both behavioral and attitudinal components are important. One example is that a consumer displays behavioural loyalty by buying Coke when there are few alternatives available and attitudinal loyalty when they will not buy an alternative brand when Coke is not available. The attitudinal component is psychological, this leads to the behavioural action of repeat purchase. It is the attitudinal loyalty that drives most loyalty behaviour and ensures loyalty over time not just with one purchase. “Brand loyalty is desired by firms because retention of existing customers is less costly than obtaining new ones. Firms profit from having loyal customers” (Melnyk & Bijmolt, 2015). BENEFITS OF BRAND LOYALTY Brand loyalty has shown to profit firms by saving them a lot of money. Benefits associated with loyal consumers include:      

Acceptance of product extensions Defense from competitors cutting of prices. Creating barriers to entry for firms looking to enter the market. Customers willing to pay high prices. Existing customers cost much less to serve. Potential new customers.

Generally speaking, brand loyalty will increase profit over time as firms do not have to spend as much time and money on maintaining relationships or marketing to existing consumers. Loyal long-term customers spend more money with a firm. CONSTRUCTION Brand loyalty is more than simple repurchasing. Customers may repurchase a brand due to situational constraints, a lack of viable alternatives, or out of convenience. Such loyalty is referred to as "spurious loyalty". A recent study showed that customer loyalty is affected by customer satisfaction, but the association differs based on customer switching costs (procedural, relational, and financial). True brand loyalty exists when customers have a high relative attitude toward the brand which is then exhibited through repurchase behavior. This type of loyalty can be a great asset to the firm: customers are willing to pay higher prices, they may cost less to serve, and can bring new customers to the firm. For example, if Joe has brand loyalty to Company A he will purchase Company A's products even if Company B's are cheaper and/or of a higher quality. From the point of view of many marketers, loyalty to the brand — in terms of consumer usage — is a key factor. However, companies often ensure that they are not spending resources to retain loyal but unprofitable customers. Usage rate

Most important is usually the 'rate' of usage, to which the Pareto 80-20 Rule applies. Kotler's 'heavy users' are likely to be disproportionately important to the brand (typically, 20 percent of users accounting for 80 percent of usage — and of suppliers' profit). As a result, suppliers often segment their customers into 'heavy', 'medium' and 'light' users; as far as they can, they target 'heavy users'. However, research shows that heavy users of a brand are not always the most profitable for a company.

Loyalty A second dimension, is whether the customer is committed to the brand. Philip Kotler, again, defines four patterns of behaviour: 1. Hard-core Loyals - who buy the brand all the time 2. Split Loyals - loyal to two or three brands. 3.Shifting Loyals - moving from one brand to another. 4. Switchers - with no loyalty (possibly 'deal prone', constantly looking for bargains or 'vanity prone', looking for something different). Again, research shows that customer commitment is a more nuanced a fine-grained construct than what was previously thought. Specifically, customer commitment has five dimensions, and some commitment dimensions (forced commitment may even negatively impact customer loyalty). Factors influencing brand loyalty It has been suggested that loyalty includes some degree of pre-dispositional commitment toward a brand. Brand loyalty is viewed as multidimensional construct. It is determined by several distinct psychological processes and it entails multivariate measurements. Customers' perceived value, brand trust, customers' satisfaction, repeat purchase behavior, and commitment are found to be the key influencing factors of brand loyalty. Commitment and repeated purchase behavior are considered as necessary conditions for brand loyalty followed by perceived value, satisfaction, and brand trust. Fred Reichheld, One of the most influential writers on brand loyalty, claimed that enhancing customer loyalty could have dramatic effects on profitability. However, new research shows that the association between customer loyalty and financial outcomes such as firm profitability and stock-market outcomes is not as straightforward as was

once believed. Many firms may overspend on customer loyalty, and then do not reap the intended benefits. Among the benefits from brand loyalty — specifically, longer tenure or staying as a customer for longer — was said to be lower sensitivity to price. This claim had not been empirically tested until recently. Recent research found evidence that longer-term

customers were indeed less sensitive to price increases. Longer term customers are less sensitive because it is harder for them to completely stop using the brand. The ability of an organization to attract and retain customers is vital to its success. Customer loyalty requires a strong appetite by the customer for a product. Marketing tools such as integrated marketing communications (IMC) and branding can be used in ways to increase perceived attraction between the consumer and the brand. These tools are used to boost emotional response and attachment to the brand, as well as to influence feelings the customer has for a brand, both are important for congruency and a relationship, this in turn leads to the development of brand loyalty. Relationship development and maintenance can also be achieved through the use of loyalty programs or a celebrity endorser. These can help to increase a bond between a brand and a consumer (Pauwels-delassus & Mogos Descotes, 2013). IMC is defined as “integrating a variety of convincing messages across various forms to communicate with and develop relationships with customers”. (Lazarevic, 2012). IMC can be used to convey the brand image, increase awareness, build brand equity, and achieve shared values between the consumer and the brand. IMC and brand loyalty and IMC and branding are both relevant marketing tools for increasing the brand loyalty of consumers. The decisions made around communications and branding should be based on solid and factual market research about the consumers.

CHAPTER 3 DATA ANALYSIS AND INTERPRETATION This chapter deals with the analysis and interpretation of the consumers attitude towards the Quaker oats product. The specific objectives of the study were :    

To study about the brand loyalty of users of Quaker Oats To know about the customer satisfaction regarding the product To understand the problems faced by the consumers To assess the influence of Quaker Oats in the recent years.

For this purpose an Interview Schedule is prepared incorporating all the relevant aspects of the study. For the selection of respondents, random sampling technique was adopted and a sample of 100 respondents were selected from the general public of the Kollam city. Tables and graphs were used for analysis and interpretation.

4.1 Gender wise classification of respondents Gender wise classification is an important factor for analysing the data collected. The respondents are classified into male and female. The information is represented in the following table: Table No 4.1 Gender wise classification of respondents GENDER MALE FEMALE TOTAL Source : Primary Data

NO. OF RESPONDENTS 40 60 100

PERCENTAGE 40% 60% 100%

GENDER MALE

Figure 4.1

INTERPRETATION: The above figure shows the gender wise classification of the respondents, who participated in the survey. We can see that only 40 percentage of the survey were male respondents and 60 percentage were female respondents

4.2 Age wise classification of respondents Age is another factor which influence the buying behaviour of customers as diifferent age group has different attitude towards the purchase of products. The samples belonging to different age group is considered and they are classified into four groups - below 20, between 20 to 30, 30 to 40 and above 40. The information is represented in the following table: Table No 4.2 Age wise classification of respondents

AGE

NO. OF RESPONDENTS

PERCENTAGE

BELOW 20

5

5%

20 - 30

24

24%

30 - 40

45

45%

ABOVE 40

16

16%

TOTAL

100

100%

AGE 60 40 20 0

A…

Figure 4.2

INTERPRETATION: The above figure shows the age wise classification of the respondents, who participated in the survey. From the table 4.2 we can see that only 5 percentage of respondents belong to the age group under 20 years while 16 percentage of respondents constitute the age group above 40 years. 34 percentage of the total respondents constitute the age group between 20 and 30 years and the majority of the respondents - 45 percentage, belong to the middle aged group between 30 and 40 years.

4.3 Occupation wise classification of respondents The respondents are classified here on the basis of their occupation. Among the 100 samples selected there were housewives, students, employees and business men. Below is a tabular representation of the information obtained : Table No 4.3 Occupation wise classification of respondents

OCCUPATION

NO. OF RESPONDENTS

PERCENTAGE

EMPLOYEE

24

24%

SELF - EMPLOYED

26

26%

STUDENT

11

11%

HOUSEWIFE

35

35%

OTHER

4

4%

TOTAL

100

100%

Source : Primary Data

OCCUPATION 35 30 25 20 15 10 5 0

OCCUPA…

INTERPRETATION: The above figure shows the graphical representation of occupation wise classification of the respondents, who participated in the survey. From the table 4.3 it is clear that only 11 percentage of respondents are students while 24 percentage of respondents constitute employees and 26 percentage of the total respondents constitute self - employed and the majority of the respondents are housewives. 4% percentage of respondents belonged to other category.

4.4 Income wise classification of respondents Income level of respondents is important demographic factors which determine the customer satisfaction. In this study the respondents are partitioned into four levels of income groups. It includes respondents who earn monthly income ranging Rs 5000 - 15000, 1500025000, 25000-50000 and above 50000.

Table No 4.4 Income wise classification of respondents

INCOME LEVEL

NO. OF RESPONDENTS

PERCENTAGE

5000 - 15000

22

22%

15000 - 25000

35

35%

25000 - 50000

28

28%

ABOVE 50000

15

15%

TOTAL

100

100%

Source : Primary Data

MONTHLY INCOME 35 30 25 20 MONTHLY INCOME

15 10 5

0 5000 15000

15000 - 25000 25000 50000

ABOVE 50000

Figure 4.4 INTERPRETATION: The above figure shows the graphical representation of income wise classification of the respondents, who participated in the survey. From the table 4.4 it is clear that 22 percentage of respondents who use oats products belong to the income group ranging between 5000 - 15000. 15% of respondents constitute the income group above 50000 and 28% constitute income group 25000 - 50000. Majority of the respondents - 35 percentage, belong to the middle income group ranging between 15000 - 25000.

4.5 Brand of Oats preferred There are different brands of oats available in the markets such as Kellogg's, Saffola, Quaker, Bagrrys etc. The following is a tabular representation showing the preference of the respondents towards the various oats brand in the market. Table No 4.5 Oats Brand preferred NO. OF

BRAND

PERCENTAGE

RESPONDENTS

QUAKER

40

40%

SAFFOLA

32

32%

KELLOGG'S

20

20%

BAGGRYS

8

8%

TOTAL

100

100%

Source : Primary Data

OATS BRAND PREFERRED 40 35 30 25 20 15 10 5 0

OATS BRAND PREFERRED

Figure 4.5

INTERPRETATION: The above figure shows the graphical representation of the preference of oats users towards the different brands available in the market. The figure shows that Quaker Oats dominates the market with a preference of 40 percentage and the second position in the market is secured by Saffola with 32 percentage. Kellogg's also has a not so bad percentage of 20 and the least preferred brand by the respondents is Bagrrys with only 8 percentage preference

4.6 Source of Brand Awareness Source of information is an important factor which influences the buying behaviour of the customers. There are several options available so that the customers can get a clear idea about the products. The respondents were asked the source from where they got to know about Quaker Oats by providing different choices such as advertisement, friends, magazines, public opinion etc. The following is a tabular representation of the information obtained Table No 4.6 Source of Brand Awareness

SOURCE

NO. OF RESPONDENTS

PERCENTAGE

ADVERTISEMENT

50

50%

FRIENDS

19

19%

MAGAZINES

25

25%

PUBLIC OPINION

6

6%

TOTAL

100

100%

Source : Primary Data

SOURCE OF BRAND AWARENESS 50 40 30 20 10 0

SOURCE OF BRAND AWARENESS

Figure 4.6

INTERPRETATION: The above figure shows the graphical representation of the source from where the customers came to know about Quaker Oats. Out of the 100 respondents surveyed, 50 percentage came to know about the product from advertisement whereas 19 percentage came to know about the product from friends. 25 percentage of the respondents chose magazine as their source of information and 6 percentage chose public opinion.

4.7 Duration of usage of the product The time period of the usage of Quaker Oats by the respondents is essential so as to determine their brand loyalty towards the brand. Table No 4.7 Duration of usage

DURATION

NO. OF RESPONDENTS

PERCENTAGE

FIRST PURCHASE

5

5%

6 MONTHS

20

20%

ONE YEAR ABOVE ONE YEAR TOTAL

28

28%

47

47%

100

100%

Source : Primary Data

DURATION OF USAGE 50 40 30 20 10 0

DURATION…

Figure 4.7

INTERPRETATION: The above figure shows the graphical representation of the time period or duration of the usage of Quaker Oats by the respondents. Out of the 100 samples selected from the general public, we can see that upto 47 percentage of the respondents have been using the product for more than one year. 28 percentage of the respondents have been using the product for one year and 20 percentage for 6 months. Only 5 percentage of them were using the product for the first time.

4.8 Reason of preference of the product

By understanding the reason behind the purchase of Quaker Oats by its customers, we can learn more about the purchasing attitude of its consumers. Three choices were given to the respondents as reasons of preference - easy to cook, obesity control and cholesterol / sugar control. Table No 4.8 Reason of preference

REASON

NO. OF RESPONDENTS

OBESITY CONTROL EASY TO COOK CHOLESTEROL / SUGAR CONTROL TOTAL

PERCENTAGE

35

35%

15

15%

50

50%

100

100%

REASON OF PREFERENCE 50

REASON OF PREFERENCE

0

Figure 4.8

INTERPRETATION: The above figure shows the graphical representation of the reason as to why the respondents preferred Quaker Oats. Out of the 100 samples selected from the general public, we can see that 35 percentage of the respondents states the reason of their purchase is because Quaker Oats helps in obesity control whereas 15 percentage of the respondents prefers the

product as it is a very easy to cook meal and majority of 50 percentage claims that Quaker has helped in cholesterol / sugar control.

4.9 Factors affecting the purchase of the product The consumers may be influenced by several factors which affects their purchase of a product. Understanding and analysing these factors in detail will help to get a clear idea about the customers attitudes which will in turn help to retain and increase the consumers of the product. Table No 4.9 Factors affecting the purchase FACTORS

NO. OF RESPONDENTS

PERCENTAGE

PRICE

10

10%

BRAND

27

27%

QUALITY

43

43%

EASY AVAILABILITY

20

20%

TOTAL

100

100%

Source : Primary Data

INTERPRETATION: The above figure shows the graphical representation of the factors which affects the purchase of Quaker Oats by its consumers. From table 4.9, we can see that the most important factor which influenced the consumers is the quality of the product as 43 percentage of the respondents chose quality. The second influencing factor which led to the purchase of the product is its brand's popularity. 27 percentage of the respondents chose brand and 20 percentage of the respondents bought the product due to its easy availability. 10 percentage feels the reason of their purchase is due to its price.

FACTORS AFFECTING THE PURCHASE 45 40 35 30

FACTORS AFFECTING THE PURCHASE

25 20 15 10 5 0 PRICE

BRAND

QUALITY

EASY AVAILABILITY

Figure 4.9

4.10 First reaction towards the product The consumers' reaction after using the product for the first time is very important as this factor decides whether they will purchase the product again or not. The first impression the product creates on the minds of its consumers leads to retaining them for a long time. Table No 4.10 First reaction towards the product

REACTION VERY POSITIVE NEUTRAL SOMEWHAT POSITIVE

NO. OF RESPONDENTS

PERCENTAGE

50

50%

30

30%

14

14%

NEGATIVE

6

6%

TOTAL

100

100%

FIRST REACTION 50 40 FIRST REACTION

30 20 10 0 VERY POSITIVE

NEUTRAL

SOMEWHAT NEGATIVE POSITIVE

Figure 4.1

INTERPRETATION: From the graph, it is clear that majority of the respondents' first reaction after using the product is very positive, that is 50 percentage. 30 percentage of the respondents' reaction was neutral whereas 14 percentage of them responded as somewhat positive. Only 6 percentage responded negatively about the product.

4.11 Quality of the product We can say that the quality of the product is the most important factor in the success of any product. The rank given by the customer for the quality of the product represents their customer satisfaction level. In this survey, the respondents were asked to rank the quality of the product and four different levels of ranking were given as choices to them - very good, good, satisfactory and bad.

Table No 4.11 Quality of the product NO. OF

RANK

RESPONDENTS

PERCENTAGE

VERY GOOD

60

60%

GOOD

20

20%

SATISFACTORY

16

16%

BAD

4

4%

TOTAL

100

100%

Source : Primary Data

QUALITY 60 50 40 30 20 10 0

QUALITY

Figure 4.1

INTERPRETATION: From the above graphical representation of the respondents' ranking of the quality of the product, we can see that majority, 60 percentage thinks that the quality is very good. While 20 percentage thinks that the quality is good and 16 percentage thinks that the quality is just satisfactory. A minority of 4 percentage gave a bad ranking for the quality of the Quaker Oats.

4.12 Price of the product The role of price in consumer behavior is certainly both influential and complex. It is an important factor which determines the brand loyalty of the consumers towards Quaker Oats and also their satisfaction level. The rise or decline in the price of a product can influence a consumer both positively and negatively. Hence, it is important to know what they think about the price of Quaker Oats. For this purpose the respondents were given four choices as their options - high, moderate, low, very low. Table No 4.12 Price of the product

PRICE

NO. OF RESPONDENTS

PERCENTAGE

HIGH

40

40%

MODERATE

35

35%

LOW

15

15%

VERY LOW

10

10%

TOTAL

100

100%

Source : Primary Data

PRICE 40 35 30 25

PRICE

20 15 10 5 0 HIGH

MODERTE

LOW

VERY LOW

Figure 4.12

INTERPRETATION: Above is a graphical representation of the respondents' opinion about the price of the product. Out of the 100 respondents surveyed, 40 percentage of the consumers feel that the price of the product is high and 35 percentage chose the price to be moderate. 15 percentage of the respondents thinks that the price of the product is low while 10 percentage feels that the price is very low.

4.13 Packing of the product The method and pattern of packing is a factor which has a major contribution in increasing the sales of a product. A good packaging of product helps to attract customers and also keeps the product safe and far from damages. The quality of packing has a direct relation with the quality of the product and also consumer satisfaction. Packing of the product is one of

its powerful selling tools. Here the respondents are asked to rank the quality of packing of Quaker Oats by giving them four choices - very good, good, satisfactory, dissatisfied.

Table No 4.13 Packing of the product

RANK

NO. OF RESPONDENTS

PERCENTAGE

VERY GOOD

39

39%

GOOD

33

33%

SATISFACTORY

20

20%

DISSATISFIED

8

8%

TOTAL

100

100%

Source : Primary Data

PACKING 40 30

PACKING

20 10 0 VERY GOOD

GOOD

SATISFACTORY

Figure 4.13

INTERPRETATION:

DISSATISFIED

Above is a graphical representation of the respondents' opinion about the packing of the product. Out of the 100 respondents surveyed, a majority of 39 percentage thinks that the packing is very good and 33 percentage thinks that the packing is good. 20 percentage of respondents expressed their opinion about the packing of the product as satisfactory. Only a minority of 8 percentage responded dissatisfied. 4.14 The Smart Heart Challenge The Smart Heart Challenge is a mission launched by Quaker Oats and PepsiCo to make India heart healthy. This strategy has proved to be a great success and attracted a whole new section of society towards the product. Therefore knowing the opinion of consumers about the Smart Heart Challenge is an important factor in understanding the consumer satisfaction and their buying behaviour. The respondents were asked whether they think the challenge is effective or not.

Table No 4.14 The Smart Heart Challenge NO. OF

OPINION

RESPONDENTS

PERCENTAGE

YES

85

85%

NO

15

15%

TOTAL

100

100%

Source : Primary Data

SMART HEART CHALLENGE 100

SMART HEART CHALLENGE

0 YES

NO

Figure 4.14

INTERPRETATION: The above figure shows the graphical representation of the opinion about the effectiveness of the Smart Heart Challenge launched by Quaker Oats. We can clearly see that a majority of 85 percentage of the 100 respondents responded positively by saying 'yes' and only a very low minority of 15 percentage of respondents responded negatively

4.15 Influence of Company Image Company image refers to a company's reputation among the public or among its consumers. A good company image is always a genuine asset. It's what a company want to convey about itself, the business, its products, work ethic, and professionalism combined with the strategy developed to reach the target audience. The company image is so important because it instantly tells all its customers and vendors what kind of company it is. If the image is excellent, it will make the company stand out from the competitors. Therefore, knowing about the influence of the Quaker Company's image among its consumers when purchasing its product is very important in determining their brand loyalty. Table No 4.15 Influence of Company Image

INFLUENCE

NO. OF RESPONDENTS

PERCENTAGE

VERY STRONGLY

40

40%

STRONGLY

28

28%

SLIGHTLY

21

21%

VERY SLIGHTLY

11

11%

TOTAL

100

100%

Source : Primary Data

INFLUENCE OF COMPANY IMAGE 40 INFLUENCE OF COMPANY IMAGE

30 20 10 0 VERY STRONGLY

STRONGLY

SLIGHTLY

VERY SLIGHTLY

Figure 4.15

INTERPRETATION: 100 respondents were surveyed to know about the influence of the Quaker Company's image on its consumers in the purchase of their product. A majority of 40 percentage claimed to be influenced by the company's image very strongly whereas 28 percentage chose the option 'strongly'. 21 percentage of the respondents admitted to be influenced slightly and 11 percentage of them were only very slightly influenced by the company's image.

CHAPTER 5 FINDINGS, SUGGESTIONS AND CONCLUSION

Brand loyalty in marketing, consists of a consumer’s devotion, bond, and commitment to repurchase and continue to use a brands product or service over time, regardless of changes with competitors pricing or changes in the external environment. Brand loyalty reflects a customer's commitment to remain in a relationship for a long period of time with a brand. When an emotional relationship is created between the consumer and the brand this leads to a strong bond and a competitive advantage for that particular brand. Humans are attracted to certain brands due to each individual psychological makeup. Marketing is geared toward brand loyalty to keep customers coming back to purchase or use products and services. It is the ultimate goal a company determines when budgeting. Higher sales volumes, premium pricing ability, and retaining rather than seeking customers are the important aspects of brand loyalty. In our Indian economy, the food sector has lately seen many innovations and introduction of various new products thus providing a floor for stiff competition. One of the recent phenomena is the quick rise of cereal foods especially oatmeal. As the mindset of the society regarding their food habits is changing and people are now more health conscious, marketing of such products can be really profitable. This case study was conducted to find out about the brand loyalty among the Quaker oats users. Quaker is among the leading oats brands in the markets presently and has brought about a change in the eating habits of the people of India and their attitude towards their healthcare. Thus this study will help us know more about the consumers attitude towards the brand and their satisfaction level.

FINDINGS In order to formulate a research problem in the right perceptive, a great deal of exploratory work is required. It was found that there is a need for conducting such a detailed market study to understand the influence of the Quaker brand on its customers. A survey was conducted where 100 samples were selected from the general public and interviewed. The respondents were asked several question regarding the product to have a clear idea about their opinions. The information obtained from the market study was analysed and interpreted. A percentage analysis was done which particularly helped in formulating various findings regarding the study. 

From the analysis, we can conclude that majority of the consumers are female as they are more conscious about the health of their family .



The respondents were grouped into different categories based on their age and it was found out that majority of the consumers belong to the middle aged group between 20 30 years. The reason may be because the consumers belonging to this age group are more conscious about their health. The minority of consumers were below 20 years old.



The study shows that majority of customers of the product are housewives as they are in charge of the purchase decision whereas the least users of the product are students.



When the income of the consumers were considered, it was found that majority of the consumers belonged to the middle income group - consumers with monthly income between 15000 to 25000.



From the study it was found that even though there is a stiff competition in the market, Quaker is the most preferred brand of oats from its competitors.



Majority of the respondents came to know about the product through advertisement media - 50% of the total of 100 samples.



Most of the consumers have been using the product for more than 1 year which shows that the they are highly satisfied with the product and also loyal to the brand.



From the study it was revealed that most of the consumers prefer Quaker Oats as it helps in reducing and controlling sugar and cholesterol.



From the study we can see that majority of the consumers buy the product due to its superior quality. The second important factor which influenced the purchase is its brand. Hence the Quaker brand has had a prominent effect in the market and has influenced its consumers.



The study reveals that 50% of the consumers had a very positive reaction towards the product after their first purchase whereas only 6% had a negative response. This shows that the product had the ability to satisfy its consumers very effectively.



The analysis shows that a majority of 60% of the respondents feels that the product is of high quality and 36% are satisfied with its quality. Only a minority of 4% regarded that the product is of poor quality. Therefore, we can say that the consumers are highly satisfied in the case of quality of the product.



40% of consumers feels that the price of the product is high whereas 35% thinks that it has a moderate price. Only 10% percentage feels that the price is very low. The satisfaction level of consumers in the case of price of the product tends to be low.



Most of the customers are satisfied with the packing of the product. 39% of the consumers thinks that the packing is very good and 53% feels it is satisfactory. Only a minority of 8% were dissatisfied with the packing.



The study reveals that the Quaker Company's mission of smart heart challenge is a great success. 85% of the respondents thinks that it was very effective while only 15% thinks the challenge was not effective.



From the study we can conclude that the company's image has a very big influence in the purchase of Quaker Oats. A majority of 40% were very strongly influenced by the company image and 28% were strongly influenced. Only 11% were very slightly influenced. This shows the effect of brand loyalty among the oats users.



63% of respondents' first choice of brand is Quaker whereas 37% chose other brands as their first choice. This shows the influence the brand has on its customers.



58% of the consumers admitted that they would purchase other products of the Quaker brand whereas 42% of them were not interested in trying other products of the brand.



From the study it was revealed that 53% of the respondents were ready to purchase the product even after a price rise whereas 47% were not ready to continue the purchase of

Quaker if the price was raised. This shows that majority of the consumers are loyal to the brand. 

From the survey conducted, it was found that 60% of the consumers have not used any other brand of oats before using Quaker and 40% have tried other brands before purchasing Quaker oats.



Majority of 92% of the consumers were ready to recommend the product to others and only 8% of them were not interested in recommending the product to others. This shows that the consumers are highly satisfied about the product and also very loyal.

CONCLUSION The present study was conducted with a view to analyse the brand loyalty of Quaker Oats users. For conducting the study, a sample of 100 respondents were randomly selected from the general public of the Kollam city and information was obtained from them with the help of interview schedule. The study mainly focused on the brand loyalty of Quaker Oats users, their satisfaction on the product and its influence and also to know about the problems faced by the consumers. In the recent years, as the society became more educated and health conscious, the cereal based food products especially oats has secured a favourable position in the market and Quaker is among the leading oats brand. With its promise of a better and healthier lifestyle Quaker has become famous among its consumers providing quality products and achieving a high satisfaction level from its consumers. Brand loyalty is an essential part in the success of any product. It shows the relationship the brand has with its customers. From the study we can see that Quaker has gained a favourable brand loyalty from its customers. Nurturing brand loyalty helps in avoiding competitions and worrying about the changes in price availability of product as loyal consumers always repurchase the same brand repeatedly regardless of the changes in the environment or the competitors' actions. Various problems faced by the consumers were also analysed so that any shortcomings can be solved thus increasing the consumers trust in the brand. Also we can see that Quaker has had an eminent influence on the society in these recent years. More and more consumers have started to purchase the product. The health mission launched by the brand has changed the eating habits of

the consumers drastically and has had a very positive effect. Consumers are willing to recommend the product to others and also they are ready to purchase the product even after a price raise which shows their loyalty towards the brand. All these are the result of the influence Quaker has on our society.

BIBILOGRAPHY BOOKS : 

Washington and Booker T, (1990) "Cereal Tycoon : The Biography of Henry Parson Crowell " Joe Musser Books Volume I



Richard D. Czerniawski, Michael W. Maloney 1999 Creating Brand Loyalty: The Management of Power Positioning and Really Great Advertising ,AMACOM Publishers



Philip R. Cateora (2008) International Marketing , Tata McGraw-Hill Education, 13th Edition



Susan M. Keaveney 1987 - Marketing: an international perspective , Irwin Publication, Originated from the University of California , Volume 1



Michael Moon with Doug Millison (2000) Building Brand Loyalty in the Internet Age, McGraw - Hill Education , page 35 -

JOURNALS : 

J.M. Johnson & Sons. 1874 :The Food Journal. London



Punniyamoorthy, M. Mohan Raj, Prasanna (2007). "An empirical model for brand loyalty measurement". Journal of Targeting, Measurement and Analysis for Marketing.

ARTICLES :



Oats Boom in India The Times of India Mumbai; Date Aug 26 2013; Section : Times Business ; Page 15



Economic Times, Rural Marketing, News, 10 February 2016



Matthew Herper and Betsy Schiffman (2 August 2001). "Pepsi Bought Quaker. Now What?"

WEBSITES : 

https://en.wikipedia.org/wiki/Brand_loyalty



https://en.wikipedia.org/wiki/Brand



https://www.britannica.com/topic/Quaker-Oats-Company



https://en.wikipedia.org/wiki/Oat



https://en.wikipedia.org/wiki/Oatmeal.



https://en.wikipedia.org/wiki/Quaker_Oats_Company 

http://www.quakeroats.com/about-quaker-oats.aspx

APPENDIX INTERVIEW SCHEDULE

1. NAME : 2. GENDER MALE

FEMALE

3. AGE BELOW 20

20-30

30-40

ABOVE 40

4. OCCUPATION EMPLOYEE

SELF - EMPLOYED

STUDENT

HOUSE WIFE

OTHER 5. MONTHLY INCOME: 5000-15000

15000-25000

25000-50000

ABOVE 50000

6. WHICH BRAND OF OATS DO YOU PREFER? QUAKER

SAFFOLA

KELLOGG'S

BAGRRYS

7. HOW DID YOU COME TO KNOW ABOUT QUAKER OATS? ADVERTISEMENT MAGAZINES

FRIENDS PUBLIC OPINION

8. HOW LONG HAVE YOU BEEN A CUSTOMER OF THIS PRODUCT? FIRST PURCHASE 1 YEAR

6 MONTHS ABOVE 1 YEAR

9. WHY DO YOU PREFER TO CHOOSE QUAKER OATMEAL AS YOUR BREAKFAST/LUNCH/DINNER ? OBESITY CONTROL SUAGR/CHOLESTEROL CONTROL

EASY TO COOK

10. WHICH FACTOR EFFECTED YOUR PURCHASE? PRICE

BRAND

QUALITY

EASY AVAILABILITY

11. WHAT IS YOUR FIRST REACTION TOWARDS THIS PRODUCT? VERY POSITIVE

NEUTRAL

SOMEWHAT POSITIVE

NEGATIVE

12. HOW DO YOU RANK THE QUALITY OF THE PRODUCT? VERY GOOD

GOOD

SATISFACTORY

BAD

13. WHAT IS YOUR OPINION ABOUT THE PRICE OF THE PRODUCT ? HIGH

MODERATE

LOW

VERY LOW

14. YOUR OPINION ABOUT THE PACKING OF THE PRODUCT? VERY GOOD

GOOD

SATISFACTORY

DISSATISFIED

15. DO YOU THINK THE SMART HEART CHALLENGE LAUNCHED BY QUAKER OATS IS EFFECTIVE? YES

NO