Mini Project: Study On Brand Loyalty Among Quaker Oats Users With Special Reference To Kollam City
Mini Project: Study On Brand Loyalty Among Quaker Oats Users With Special Reference To Kollam City
Mini Project: Study On Brand Loyalty Among Quaker Oats Users With Special Reference To Kollam City
BY
BISMI MOL N
DECLARATION
Bismi mol n
Place : kollam
Date : 9/1/19
ACKNOWLEDGEMENT
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:
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.
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 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.
Customers of Quaker Oats are taken as the universe or population for the study of kollamCity.
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.
1.3.8 Chapterisation
Chapter I - Introduction
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.
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 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.
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 macro-
environmental 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
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
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:
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.
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).
Brand loyalty has shown to profit firms by saving them a lot of money. Benefits associated with
loyal consumers include:
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:
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).
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 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 :
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.
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
NO. OF
GENDER PERCENTAGE
RESPONDENTS
MALE 40 40%
FEMALE 60 60%
TOTAL 100 100%
Source : Primary Data
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
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
NO. OF
AGE PERCENTAGE
RESPONDENTS
BELOW 20 5 5%
20 - 30 24 24%
30 - 40 45 45%
ABOVE 40 16 16%
TOTAL 100 100%
AGE
60
40
20 A…
0
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.
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
NO. OF
OCCUPATION PERCENTAGE
RESPONDENTS
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 OCCUPA…
5
0
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.
NO. OF
INCOME LEVEL PERCENTAGE
RESPONDENTS
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
15 MONTHLY INCOME
10
5
0
5000 - 15000 - 25000 - ABOVE
15000 25000 50000 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.
NO. OF
BRAND PERCENTAGE
RESPONDENTS
QUAKER 40 40%
SAFFOLA 32 32%
KELLOGG'S 20 20%
BAGGRYS 8 8%
TOTAL 100 100%
Source : Primary Data
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
NO. OF
SOURCE PERCENTAGE
RESPONDENTS
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 SOURCE OF BRAND
0 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.
The time period of the usage of Quaker Oats by the respondents is essential so as to
determine their brand loyalty towards the brand.
NO. OF
DURATION PERCENTAGE
RESPONDENTS
FIRST PURCHASE 5 5%
6 MONTHS 20 20%
ONE YEAR 28 28%
ABOVE ONE
47 47%
YEAR
TOTAL 100 100%
Source : Primary Data
DURATION OF USAGE
50
40
30
20
10 DURATION…
0
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.
Table No 4.8
Reason of preference
NO. OF
REASON PERCENTAGE
RESPONDENTS
OBESITY
35 35%
CONTROL
EASY TO COOK 15 15%
CHOLESTEROL /
50 50%
SUGAR CONTROL
TOTAL 100 100%
REASON OF PREFERENCE
50
0 REASON OF
PREFERENCE
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.
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
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
25 THE PURCHASE
20
15
10
5
0
PRICE BRAND QUALITY EASY
AVAILABILITY
Figure 4.9
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
NO. OF
REACTION PERCENTAGE
RESPONDENTS
VERY
50 50%
POSITIVE
NEUTRAL 30 30%
SOMEWHAT
14 14%
POSITIVE
NEGATIVE 6 6%
TOTAL 100 100%
FIRST REACTION
50
40
30 FIRST REACTION
20
10
0
VERY NEUTRAL SOMEWHAT NEGATIVE
POSITIVE 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.
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
NO. OF
RANK PERCENTAGE
RESPONDENTS
VERY GOOD 60 60%
GOOD 20 20%
SATISFACTORY 16 16%
BAD 4 4%
TOTAL 100 100%
Source : Primary Data
QUALITY
60
50
40
30 QUALITY
20
10
0
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
NO. OF
PRICE PERCENTAGE
RESPONDENTS
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
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.
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
NO. OF
RANK PERCENTAGE
RESPONDENTS
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 DISSATISFIED
Figure 4.13
INTERPRETATION:
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.
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
NO. OF
OPINION PERCENTAGE
RESPONDENTS
YES 85 85%
NO 15 15%
TOTAL 100 100%
Source : Primary Data
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
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
NO. OF
INFLUENCE PERCENTAGE
RESPONDENTS
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
30 INFLUENCE OF
COMPANY IMAGE
20
10
0
VERY STRONGLY SLIGHTLY VERY
STRONGLY 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
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 :
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