Fruits & Vegetables Marketing -Marketing Research

Description
It Explains the fruits and vegetable marketing at a typical market place in Manipal in India.

Descriptive Study of the Fruits and Vegetable Marketing System in Manipal

Outline
• • • • • • Introduction to Fruit & Vegetable market Objectives of Study Research Methodology Data Analysis andFindings Conclusions Limitations of Study

Introduction to Fruit & Vegetable market
• The fruits & vegetables market is a highly competitive market • The fruits and vegetables are sourced from Bangalore, Shimoga, Brahmavara etc.

• There are 18 – 20 vendors

Characteristics of the Market
• The perishable nature of products warrants a strong and efficient distribution network. • The seasonal nature of the demand. • Predominance of student population and NRI’s leading to lesser price sensitivity.

Objectives of Study
• To arrive at a descriptive overview of the fruits and vegetables market in Manipal by studying all the various aspects involved • To analyse the factors affecting the purchasing behaviour of the customers • To examine the factors affecting the sales of the fruits and vegetables in Manipal from the vendors perspective. • To examine the factors that influence the customers decision while choosing a fruit & vegetable vendor

Objectives of Study (Contd.)
• To identify and segment the customers into different groups based on their behavioural, psychographic and demographic traits. • To estimate the income earned by the retailers and other vendors in the fruits and vegetables market in Manipal • To estimate the average amount customers spend on fruits and vegetables • To estimate the market size of the top four fruits in Manipal.

Research Methodology
• Pre – Survey Research
– Focus Group Discussions

• Data Collection through Survey
– Vendor Specific Questionnaire – Customer Specific Questionnaire – 12 Vendors and 107 customers

• Data Analysis and findings
– – – – Cross Tabulations Factor Analysis Cluster Analysis Demand Estimation

Data Analysis and Findings

Vendor Profile
Breakup
12

10

8 Fruits only Vegetables only 6 Fruits & Vegetables Kirana Store

4

2

0
Retailer Wholesaler

Distribution of shops in Manipal
Location
Near bus stop 21% Near KMC 29%

Residential Area 29% Near college/school 21%

Peak Sales vs. Time of Day
Peak Sale- Both Morning and Evening Peak Sale- Only During Evening

0%

17% 33% Residential Area 33% Residential Area

Near Educational Institute
Bus Stand 67% 50%

Near Educational Institute
Bus Stand

Customer Profile
35 30

25

20

15

10

5

0 Age distribution 16-20 21-25 26-30 31-35 36-40 41-45 46-50 >50

Occupation
Consumer Classification
Others 12

Retired O c c Teacher/Professor u p a t Working Professional i o n Housewife

5

8

33

8

Student

39

0

5

10

15

20

25

30

35

40

45

No of consumers

Distribution of married consumers
Married
Other 11

Retired

5

Teacher/professor

6

Working professional

23

Housewife

8

Student

4

0

5

10

15

20

25

Distribution of unmarried consumers
Unmarried
Other 1

Retired

Teacher/professor

2

Working professional

10

Housewife

0

Student

35

0

5

10

15

20

25

30

35

40

Purchase Frequency
50 45

40

35

30

25

20

15

10

5

0 More than once a day Once a day 2-3 times a week Once a week Rarely

CONSUMER PURCHASE BEHAVIOR

Factor Analysis for Vendors
Factor Price Freshness of the fruits & vegetables Fuel Prices 1 2 3 4 5

Strikes leading to shortage of fruits and vegetables Transport costs
Variety in the fruits and vegetables sold Student and college vacations Credit Offered

Factors for vendors
Component 1 Price Freshness Fuel Prices Strikes Transport costs Variety College Student Vacation -.167 -.298 .856 .975 .821 -.569 .424 2 .210 .939 .099 -.041 .503 .145 .836 3 .904 -.096 .023 -.074 .177 -.672 .038

Credit Offered

.244

.879

.390

Factors
Economy •Fuel Prices •Strikes •Transport Costs Monetary •Price

Customer Specific Factor Analysis
Factor Cleanliness of the shop Freshness of the fruits & vegetables Variety in the fruits & vegetables sold 1 2 3 4 5

Prices offered
Credit facility offered Location of the shop Closeness to home Availability of juices & milk shakes Availability of general groceries Availability of general groceries nearby

Time of the day

Factors affecting consumer choices
Component

1
.794 .754 .735 .091 .118 .043 -.005 -.020

2
.129 -.318 .167 .003 .094 .121 -.180 .028

3
.130 .004 -.008 -.083 .083 -.071 .289 .884

4
.219 .147 -.053 .858 .690 -.058 .273 -.124

5
-.049 .034 .065 -.063 .187 .894 .716 -.009

.173
-.068 .124

.299
.741 .879

.736
.267 .003

.171
.133 -.016

.169
.001 -.002

Factors
• Cleanliness of the shop • Freshness of the fruits and vegetables • Variety of fruits and vegetables • Location of the shop • Closeness to home

Location Value Added Services Convenience Monetary

• Availability of fruit juices and milkshakes • Availability of general groceries in the same shop

• Availability of general groceries in shops nearby • Time of the day

• Prices • Credit facility

Customer Segmentation
Variable/Attribute Student/Bachelor Cluster Family Cluster

Weekly expenditure on fruits and vegetables

Fruits - 107.27 Vegetables - 59.70

Fruits - 43.20 Vegetables - 64.45

Avg. Age of respondents Respondents occupation

21 – 35 years Students, bachelors, working professionals.

Greater than 35 years Working professionals, retired and housewives.

Other variables

Impulsive buyers

Non- impulsive buyers

Behavioral analysis
3.5 3

2.5

2 students 1.5 family

1

0.5

0 Avalibility of juice Avail. Of Grocceries Avail. Nearyby grocceries Time of the day

Psychographic Analysis
Freshness 1 Clean Shop Price Location variety

2

students Rank 3 family

4

Psychographic Analysis 5

VEGETABLE & FRUIT MARKET SIZE ESTIMATION
Vendor # Type of Shop Average Revenue per day

1 2 3 4 5 6 7 8 9 10 11 12

Retailer Retailer Retailer & Wholesaler Retailer Retailer Retailer Retailer Retailer Retailer Retailer Retailer Retailer TOTAL Average Monthly Income Average Monthly income for all vendors

3100 5500 102000 6300 5100 5300 2100 4700 4100 4300 6000 4800
153300 4752300 4752300 + 15% * 4752300 = 5465145

Average weekly expenditures
Occupation Average Expenditure on Fruits per week (in Rs) Average Expenditure on vegetables per week (in Rs)

Students

107.27

43.20

Households

59.70

64.45

Market Size for households
1st option 2nd option 3rd option TOTAL per week Amount per household /week TOTAL per week for household

Monthly

Banana s

177

194.25

130.5

501.75

9.838235294

36,893.38

1,47,573.53

Apple

2221

2058

0

4279

83.90196078

3,14,632,3 12,58,529.412
45,772.06

Orange

330

142.5

150

622.5

12.20588235

1,83,088.24

Grapes

157.5

0

105

262.5

5.147058824

19,301.47

77,205.88

4,16,599

16,66,397

Market Size for Students
Fruits 1st option 2nd option 3rd option TOTAL per week Amount per person/week TOTAL per week for student Monthly

1,10,191 Bana nas 264 197.25 82 543.25 11.08673469 2,94,721 Apple Oran ge Grap es 825 506 122 1453 29.65306122 1,51,823 142.5 276 330 748.5 15.2755102

4,40,764
11,78,884

6,07,292

2,43,606
610 560 31 1201 24.51020408

9,74,424

80.5255102

8,00,341

32,01,164

Student vs. Households
Market Size
Grapes

Oranges Fruit

Column1 Students & bachelors Apples Household

Bananas

0

200000

400000

600000 800000 Market Size in Rs

1000000

1200000

1400000

Conclusion
• The vegetable and fruit marketing system in Manipal comprised mainly of retail vendors. • Prices was not a very dominant factor in purchasing for consumers. • Students tend to prefer to buy on weekends whereas the family purchases mainly tend to be on a daily basis.

• Maximum traffic of consumers at the vendor shops is mainly in the evening

Conclusion (contd.)
• The factors that affect the sales of the vendors are mainly the Monetary factor and the Economy factor. • Consumers rely on factors that can be broadly classified into groups :
– Hygiene, Location, Convenience, Value Added services, and monetary factors.

• Consumer mainly fall into 2 groups – students & bachelors and families

Conclusion (contd.)
• Market size of the top 4 purchased fruits –
– Rs 32,01,164 for the student segment – Rs 16,66,397 per month for families

• From the vendor perspective, the vegetable and fruit market was estimated to be Rs 54,65,146 per month.

Limitations & Scope for Future Study
• Institutional buying of fruits and vegetables was not considered. • Consumption of fruits indirectly in form of juices and milk shakes was not considered • Reasons why fruits and vegetables are not consumed • Scope of study could be expanded to include Udupi



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