Description
The fruits and vegetables market in Manipal has never been analyzed like this. This report carries out a study on the fruits and vegetables market. This study, therefore, aims to provide a descriptive overview of the fruits and vegetables market in Manipal. Its a marketing research(MR) report.
Descriptive Study of the Vegetable & Fruit Marketing System in Manipal
Table of Contents
Executive Summary PART 1 – Introduction
1. 2. 3. 4.
Profile of the Vegetables & Fruits market in Manipal Rationale of the project Objectives of the project Scope of the project
PART 2 – Objectives and Scope PART 3 – Research Methodology PART 4 – Data Analysis and Findings
1.
2. 3. 4. 5.
Market Profile a. Vendor Profile b. Consumer Profile Consumer Purchase Behavior Factor Analysis - Factors affecting vendors and consumers Cluster Analysis - Customer Segments Vegetable and Fruit Market Size Estimation
PART 5 – Conclusions PART 6 – Limitations and Future Studies PART 7 – References PART 8 – Appendix
1 Vendor Specific questionnaire 2 Consumer Specific questionnaire
Executive Summary
Part 1 - Introduction
For ages India has been an agrarian economy. It was only in the mid 1980’s that we started moving towards industrialization. Even in the times of automated machines and IT, agriculture plays an important role in the Indian economy. This sector accounts for over 20 percent of the Indian GDP and has seen a robust growth of 11-13 year on year for the last couple of years. One of the major contributors to this sector is the state of Karnataka. The districts of Bangalore (Rural and urban combined), Kolar, Belgaum and Dharward account for 15%, 12.4%, 9.95% and 9% of the total state’s production respectively. The district of Udupi accounts for only 1.5% of the state’s agricultural produce.
Rationale for the Project The fruits and vegetables market in Manipal has never been analyzed before although we transact in this market on a daily basis. This served as a motivation for us to carry out a study on the fruits and vegetables market. Our study, therefore, aims to provide a descriptive overview of the fruits and vegetables market in Manipal.
Objectives and Scope The major objective of this study is to be able to provide a descriptive overview of the fruits and vegetables market in Manipal. Hence, the study aims at identifying and studying all those aspects of the market that would give us an overview of the market. These aspects have been studied from both the customers as well as the vendor’s perspective.
Part 2 - Objectives & Scope
The major objectives of our study are given below:
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To arrive at a descriptive overview of the fruits and vegetables market in Manipal by studying all the various aspects involved. To analyze the factors affecting the purchasing behavior 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 consumer’s decision for choosing a particular vegetable and fruit shop while choosing a vendor To identify and segment the customers into different groups based on their behavioral, 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 consumers spend on fruits and vegetables To estimate the market size of the top 4 fruits in Manipal.
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Part 3 - Research Methodology
The research for our study was conducted in three phases. These phases are explained below:
? Pre – Survey Research In the first stage of our research we conducted Focused Group Discussions (FGD) to identify the more important variables on which we can conduct our study. The FGDs were conducted in Manipal as well as our college. The FGD enabled us to identify and define the scope of our research. Further, it served as the basis for the preparation of our questionnaire. Designing of questionnaires To design the questionnaires, we initially came up with the below dummy findings based on which the relevant questions were determined. ? Findings related to vendors o Demographic information o Consumer profile o Average turnover per day o Type of shop (Retailer, distributor) o Fruits / vegetables arsenal (Price & quantity sold) o Factors affecting price & sales of fruits / vegetables
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Findings related to consumers o Demographic information o Consumer Classification based on demographics o Frequency and loyalty of purchase o Time of purchase (Time of the day + day of the week) o Top three items purchased o Factors affecting the purchase decision
? Data Collection through Survey The survey was conducted using questionnaires, which were designed on the basis of the findings in the previous stage. We prepared two different questionnaires – one for the vendors and one for the customers.
The survey covered only those respondents who purchased fruits and vegetables. We used random cluster sampling to select respondents for our study. We divided Manipal area wise and randomly collected responses from these clusters that we had formed. In case of the vendors, we covered almost all the vendors in Manipal. The survey covered a total of 12 vendors and about 107 respondents.
? Data Analysis and Findings The data collected during the previous phase was analyzed using SPSS. We have applied the following statistical tools on the data:
(a) Cross Tabulations Cross tabulations have been used to look the purchasing behavior of different types of customers during different times. Two cross tabs have been prepared. The first one analyses the purchasing behavior of different sets of customers during different days of the week. The second cross tab looks at the purchasing patterns of different sets of customers during different times of the day.
(b) Cluster Analysis Cluster analysis has been used to segment the customers into clusters that show identical purchasing behavior. These clusters have been formed using psychographic variables. We have found two clusters of customers. The first cluster comprises of students, bachelors and working professionals. The second cluster includes housewives, working professionals, teachers / professors and retired individuals.
(c) Factor Analysis Factor analysis is used for determining the most important factors amongst all the factors that are being considered. We have used factor analysis from the vendors’ perspective and from the customers’ perspective. From the vendors’ perspective we have used factor analysis to determine the most important factors that affect his sales. From the customers’ viewpoint, we have analyzed the most important factors that determine a customer’s choice of vendor.
(d) Market Size Estimation Based on the responses from the consumers on their expenditures on the various fruits and vegetables as well as information on the average daily income from the vendors, we have estimated the market size of the top 4 fruits. In addition we have calculated a conservative estimate of the complete vegetable and fruit market in Manipal based on the vendor information.
Part 4 - Data Analysis & Findings
As specified, our study deals with the vegetables and fruits part of the agricultural product, the percentages as mentioned above are bound to reduce further. The fruits and vegetable market in Manipal is characterized by: ? ? ? ? The perishable nature of products warrants a strong and efficient distribution network. Size of the market. The seasonal nature of the demand. Predominance of student population and NRI’s leading to lesser price sensitivity.
With a total fixed population of about 16000-19000 plus an equivalent floating population, the town houses 15-20 retail shops of fruits and vegetables with a couple of wholesale dealers.
THE MARKET PROFILE
Vendor Profile
For the purpose of our study, we designed different questionnaires for the customers and the vendors. The data was analyzed and below are some of the characteristics of the vendors in the Manipal town. Nature of business: On the whole, the town of Manipal has around 18-20 major vendors out of which 12 were interviewed. It was seen that most of the vendors were retailers with an exception of 1 or 2 who were into the wholesale business as well. The type of shop varied from being a Kirana store (selling other general groceries) to being a pure fruit & vegetables shop. There were vendors who were into selling either fruits or vegetables as well. The below pie diagram give a view of the above information.
Breakup
15 10 5 0 Retailer Wholesaler Fruits only Vegetables only Fruits & Vegetables Kirana Store
Profile of consumers: Also given that the town has a mix of households, working professionals and students; it was found that most of the consumers for these vendors were from these categories. The age group of these consumers varied from 21 to 40 with some consumers being close to 50 as well.
Years in business: It was seen that all the vendors were in the business of selling fruits and vegetables for more than 5 years with some of them being there in the market for close to 15 years.
Number of employees: Most of the vendors self manage their shops with couple of them employing more than 2-3 employees.
Suppliers: The vendors primarily procured all the supplies from dealers based out of Bangalore, Mangalore, and Chikamangalore. Direct procurement from farmers from the surrounding region too was an option but was been exercised only by 18% of the sample. Given that these vendors acquire their fruits and vegetables from outside Udupi, it was seen that most of the vendors report a loss of 15-20% due to spoilage or damage during transportation.
Location of the vendors: As seen from the below pie chart, the shops are distributed throughout Manipal. They are located in residential areas, near colleges and hospitals and close to bus stops. Also the below map of the Manipal area shows the distribution of the shops across the different areas of Manipal. As seen, there is a uniform distribution of the shops.
Location
Near KMC 29% Near bus stop 21%
Near college/school 21%
Residential Area 29%
MAP
Time of maximum business: With regard to the time of the day when they saw maximum inflow of consumers, 50% of the vendors were found to have peak sales during both morning (6AM to 9AM) and evening (4PM to 9PM) times. Whereas the rest 50% of the vendors said that the sales peaked only during the evenings.
Peak Sale- Both Morning and Evening
0% Residential Area Near Educational Institute Bus Stand
Peak Sale- Only During Evening
Residential Area Near Educational Institute 50% Bus Stand
17% 33%
33%
67%
Customer Profile
The population of Manipal comprises of: ? ? ? ? ? Students Doctors and staff at KMC Teaching and non teaching staff at colleges Shop owners and staff Household population of 15000
For our analysis we surveyed 105 people. All the above mentioned sections of the population were covered in the survey. The survey was conducted mainly at points of sale. This helped us target the appropriate segment of society (those who shop for vegetables in Manipal). The buying pattern of individuals depends on many things like age, sex, profession, marital status etc. The demographic data was collected to analyze the impact of various demographic variables on the buying patterns.
Demographic Profile: The demographic profile of the sample is as follows: ? ? 40 of the 105 respondents were male and the rest 65 were females. The distribution of customers according to age is:
35 30 25 20 15 10 5 0
The distribution of customers according to profession is:
Consumer Classification
Others O c Retired c Teacher/Professor u p Working Professional a Housewife t i Student o n 0 12 5 8 33 8 39 5 10 15 20 25 30 35 40 45
No of consumers
Marital Status: The distribution of population according to occupation varies depending on the marital status. The distributions are as follows:
Married
Other Retired Teacher/professor Working professional Housewife Student 0 4 5 10 15 20 25 8 5 6 23 11
Unmarried
Other Retired Teacher/professor Working professional Housewife Student 0 5 10 15 20 25 30 35 0 35 40 2 10 1
The survey had a mix of married and unmarried consumers. This helped to get a larger view of the market.
Purchase Frequency & Loyalty: The frequency of purchase is as depicted in the chart below:
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
The market research also revealed that about 60% of the customers remained loyal to a particular shop of their preference while buying fruits as well as vegetables.
CONSUMER PURCHASE BEHAVIOR
Using cross tabulations we have analyzed the purchasing behavior of the customers across various times during the week and also during different times of the day.
Purchase behavior across days of the week:
The first cross tabulation studies the purchasing behavior of the customers during different days of the week. The table below shows the number and percentage of customers buying fruits and vegetables during two time frames – weekdays and weekends. Further, it also includes a column for customers having no particular time preference for purchasing fruits.
Occupation vs. Day of the week No Weekday Particular Occupation / Day of the Week Day 10 12 Students Count % within Occupation % within DayOfTheWeek 25.64% 26.32% 1 12.50% 2.63% 13 39.39% 34.21% 3 37.50% 7.89% 2 40.00% 5.26% 9 60.00% 23.68% 38 35.19% 100.00% 30.77% 27.91% 7 87.50% 16.28% 13 39.39% 30.23% 3 37.50% 6.98% 2 40.00% 4.65% 6 40.00% 13.95% 43 39.81% 100.00%
Weekend
Total
17 43.59% 62.96% 0 0.00% 0.00% 7 21.21% 25.93% 2 25.00% 7.41% 1 20.00% 3.70% 0 0.00% 0.00% 27 25.00% 100.00%
39 100.00% 36.11% 8 100.00% 7.41% 33 100.00% 30.56% 8 100.00% 7.41% 5 100.00% 4.63% 15 100.00% 13.89% 108 100.00% 100.00%
Housewife
Count % within Occupation % within DayOfTheWeek
Working professional Count
% within Occupation % within DayOfTheWeek
Teacher/Professor
Count % within Occupation % within DayOfTheWeek
Retired
Count % within Occupation % within DayOfTheWeek
Others
Count % within Occupation % within DayOfTheWeek
Total
Count % within Occupation % within DayOfTheWeek
As can be seen from the table above, most of the students (43.59%) prefer purchasing fruits and vegetables over the weekend. Further, most of the customers on the weekend (62.96%) happen to be students. One factor that contributes to this is that many students have few lectures on weekends while some have holidays. This would mean that they get a lot free time to do their shopping. A second inference that can be drawn from the cross tab given above is that most of the housewives (87.50%) make their purchases during the week rather than the weekend. The housewives purchase fruits and vegetables for the entire household. Further, they would be purchasing to meet their daily requirements as they would prefer to use fresh vegetables.
Purchase Behavior across different times of the day:
The second table given below shows the relationship between the purchasing patterns of the customers during different times of the day across different types of customers. It also includes a column for customers not having any particular preference as regards the time of the day.
Occupation vs. Time of The Day Morni ng (9 AM to 12PM ) 0 0.00% 0.00% 4 50.00% 50.00% 2 6.06% 25.00% 1 12.50% 12.50% 0 0.00% 0.00% 1 6.67% 12.50% 8 7.41% 100.00% 2 5.13 % 22.22 % 2 25.00 % 22.22 % 2 6.06 % 22.22 % 0 0.00 % 0.00 % 2 40.00 % 22.22 % 1 6.67 % 11.11 % 9 8.33 % 100.0 0% Afterno ons (12 PM to 4PM) 2 5.13% 50.00% 0 0.00% 0.00% 1 3.03% 25.00% 0 0.00% 0.00% 0 0.00% 0.00% 1 6.67% 25.00% 4 3.70% 100.00 % Eveni ng (4 PM to 6PM) 9 23.08 % 42.86 % 0 0.00 % 0.00 % 9 27.27 % 42.86 % 3 37.50 % 14.29 % 0 0.00 % 0.00 % 0 0.00 % 0.00 % 21 19.44 % 100.0 0% Late Eveni ng (6:00 PM to 9:00 PM) 19 48.72 % 35.85 % 2 25.00 % 3.77 % 18 54.55 % 33.96 % 3 37.50 % 5.66 % 3 60.00 % 5.66 % 8 53.33 % 15.09 % 53 49.07 % 100.0 0% No particu lar prefere nce of time 7 17.95% 53.85% 0 0.00% 0.00% 1 3.03% 7.69% 1 12.50% 7.69% 0 0.00% 0.00% 4 26.67% 30.77% 13 12.04% 100.00 %
Occupation / Time of the Day
Early Morning (before 9 AM)
Students
Count % within Occupation % within TimeOfTheDay Count % within Occupation % within TimeOfTheDay Count % within Occupation % within TimeOfTheDay Count % within Occupation % within TimeOfTheDay Count % within Occupation % within TimeOfTheDay Count % within Occupation % within TimeOfTheDay Count % within Occupation % within TimeOfTheDay
Housewife
Working professional
Teacher / Professor
Retired
Others
Total
From the cross tab above, we can see that most of the customers (49.07%) prefer purchasing their fruits and vegetables late in the evening in the 6.00pm to 9.00 pm time bracket. Most of the students (48.72%) and working professionals (54.55%) prefer to make their purchases in this time bracket. This can be attributed to fact that students would be having lectures till evening while the working
professionals would be busy at work till the evening. Hence, vendor’s sales peaks during the time bracket of 6.00pm to 9.00 pm. The housewives, however, preferred to purchase fruits and vegetables before 9.00 am. This validates our earlier conclusion that the housewives prefer to purchase fresh fruits and vegetables. Since they want to purchase fresh vegetables for their daily requirements, they make their purchases everyday in the morning.
Factor Analysis
Factor analysis is a useful method of reducing data complexity by reducing the number of variables being studied into a smaller set of factors. It basically tries to uncover what are the significant drivers of a customer’s buying behavior. By analyzing correlations between variables it reduces the number into fewer factors which explain much of the original data, more economically.
Factors that affect the sales of the vendors:
Our objective was to find out the different factors which affect the daily sales of the vendors and to find out the demographic profile of its consumers. To find out the same we constituted a study among vendors and tabulated our findings. We asked them to rate on a Likert scale 1=lowest and 7= highest ) the importance they attached to the various variables. The variables what we chose are as follows. Factor Price Freshness of the fruits & vegetables Fuel Prices Strikes leading to shortage of fruits and vegetables Transport costs Variety in the fruits and vegetables sold Student and college vacations Credit Offered 1 2 3 4 5
Methodology We tabulated data from the above study and analyzed it using the SPSS package.
Interpretation of output
Total Variance Explained Extraction Sums of Squared Initial Eigenvalues % of Component 1 2 3 4 5 6 7 Total 3.705 2.215 1.269 .546 .182 .083 7.011E17 8 -8.399E17 Variance 46.316 27.690 15.859 6.828 2.272 1.035 8.763E-16 Cumulative % 46.316 74.006 89.865 96.692 98.965 100.000 100.000 .000 .000 .000 Total 3.705 2.215 1.269 Loadings % of Variance 46.316 27.690 15.859 Cumulative % 46.316 74.006 89.865 Total 3.037 2.683 1.469 Rotation Sums of Squared Loadings % of Variance 37.966 33.533 18.366 Cumulative % 37.966 71.498 89.865
-1.050E-15
100.000
Extraction Method: Principal Component Analysis.
Rotated Component Matrix
a
Component 1 Price Freshness Fuel Prices Strikes Transport costs Variety College Student Vacation Credit Offered -.167 -.298 .856 .975 .821 -.569 .424 .244 2 .210 .939 .099 -.041 .503 .145 .836 .879 3 .904 -.096 .023 -.074 .177 -.672 .038 .390
As is evident for the table 1 we find that the three factors accounted together for 89.65% of the total variance. Hence we have reduced the number of variables from 1 to 8 to 3 underlying factors. Looking at the above table we can say that Fuel prices, strikes and transport costs have a high loading on factor 1 i.e. .856, .975 and .821 respectively. This implies that factor 1 is a combination of 3 variables and we can term it as “Economy Factor”. Again we see that for factor 2 freshness, college student vacation and credit offered have the highest loadings. But these variables combined do not tell us any anything. Hence we exclude this factor. For factor 3 the only variable which constitutes a high loading is price. Hence this factor which we term as “Cost Factor” will constitute of only one variable.
Factors that influence the consumer’s decision for choosing a vendor:
Our objective was to find out the different factors affecting the buying behavior of consumers in Manipal. For the same we carried out a survey among respondents to find out the topmost reasons affecting their buying behavior. They were asked to indicate on a Likert scale ( 1= lowest 5 = highest) the weightage they assigned to the different variables. The variables were as follows Factor Cleanliness of the shop Freshness of the fruits & vegetables Variety in the fruits & vegetables sold 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 1 2 3 4 5
Methodology We tabulated data from the above study and analyzed it using the SPSS package.
Interpretation of output
Total Variance Explained Extraction Sums of Squared Initial Eigenvalues % of Component Total 2.418 1.752 1.427 1.155 1.000 .839 .653 .531 .454 .400 .370 Variance 21.980 15.931 12.976 10.499 9.094 7.627 5.941 4.825 4.131 3.632 3.363 Cumulative % 21.980 37.911 50.887 61.386 70.480 78.108 84.049 88.874 93.005 96.637 100.000 Total 2.418 1.752 1.427 1.155 1.000 Loadings % of Variance 21.980 15.931 12.976 10.499 9.094 Cumulative % 21.980 37.911 50.887 61.386 70.480 Total 1.813 1.613 1.514 1.425 1.388 Rotation Sums of Squared Loadings % of Variance 16.482 14.667 13.762 12.950 12.618 Cumulative % 16.482 31.150 44.912 57.862 70.480
Extraction Method: Principal Component Analysis.
Rotated Component Matrix Component 1 .794 .754 .735 .091 .118 .043 -.005 -.020 .173 -.068 .124 2 .129 -.318 .167 .003 .094 .121 -.180 .028 .299 .741 .879 3 .130 .004 -.008 -.083 .083 -.071 .289 .884 .736 .267 .003 4 .219 .147 -.053 .858 .690 -.058 .273 -.124 .171 .133 -.016
a
5 -.049 .034 .065 -.063 .187 .894 .716 -.009 .169 .001 -.002
From the first table it’s quite evident that 5 factors extracted together account for 70.5% of the total variable. Thus from the original 11 variables we have reduced it to 5 factors. For factor 1 we found out that the top 3 variables which accounted for the highest loadings were freshness cleanliness and variety. Thus we can that Factor 1 is a combination of these 3 variables and these can be grouped under a single factor called “Hygiene Factor”. For factor 2 we find that groceries nearby and time of the day contribute heavily to the loadings with scores of .741 and .879 respectively. These 2 variables hence can be combined into one factor and termed as “Convenience Factor”. For factor 3 we observe that availability of juice/shakes and groceries in the same shop have very high loading of .884 and .736 respectively. These 2 variables can be clubbed into a single factor and interpreted as “Value added services” For factor 4 we can see that price and credit have high loading factors of .858 and .690. This factor comprising these two variables can be called as “Monetary factor” For factor 5 it’s evident that location and closeness have the highest loading factor, i.e. .894 and .716 respectively. This factor consisting for these two variables can be termed as “Location Factor”.
Customer Segmentation
The main goal of this research is the identification of different market segments based on relevant psychographic characteristics of consumers and description of these segments by means of their buying (consuming) behavior, geographic and social-demographic characteristics, in order to get a base for the target marketing. This segmentation was done using cluster analysis. Cluster Analysis is a multivariate procedure ideally suited to segmentation applications in marketing research. This is because a cluster, by definition, is a group of similar objects. And segmentation involves identifying groups of target customers who are similar in buying habits, demographic characteristics, or psychographics. It is not necessary that a cluster should be only of people. There could be cluster of brands for instance, which are similar to each other, and different from other clusters. The basic methods of clustering used in our research are 1. Hierarchical clustering or linkages methods. 2. Non-Hierarchical clustering or Nodal clustering. In our analysis we found 2 consumer groups which differ between themselves according to the psychological characteristics of the consumers. In order to describe these segments we detected
differences between these segments according to the geographic, socio-demographic and buying characteristics of the consumers. The below diagram highlights the basic model that we followed to cluster the consumers into the segments. Psychographic variables General attitude about fruit and vegetables Consumer Segments
Factor 1
Cluster 1 Attitude about quality/price ratio by fruit and vegetables
Analyse
Factor 2 Analyse Cluster
Attitudes about city markets like Udupi.
Cluster n Factor n
Based on the analysis using SPSS, we were able to differentiate the consumers into 2 clusters as below:
Cluster 1: The students and bachelors group The first cluster consisted mostly of students, bachelors and working professionals. They like in the age group of 21 – 35 years. We surveyed around 70 students from various colleges in Manipal. We found that most of them preferred to buy fruits and vegetables in the weekends. We found out these people are not interested in the shop they are buying from. They were only interested in the fruits and vegetables that they bought. Students responded in a positive way if the fruit shop also sold juices and milk shakes. Cluster analysis also showed that students show an impulsive behavioral pattern. One reason we could attribute to this behavior was the spending pattern of students. Unlike families who
Consumer segments
Attitude about the cleanliness and the variety offered.
Factor
have a strict fixed monthly budget, students in Manipal have a more flexible income and don’t mind spending as their hearts desire. Cluster 2: The Family people This cluster consisted mostly of housewives, working professionals, Teachers/Professors and retired individuals. We found that unlike singles, the respondents in cluster 2 liked to shop in the weekdays. These respondents were loyal to a particular shop. This is beneficial for both the seller and the customer. From the seller’s point of view, he gets a long time customer, and from the customer’s point of view, the customer is ensured of quality and price every time he purchases from the fruits/vegetable vendor. Families were not impressed if a shop had added features like a juice centre or if the shop sold groceries. To understand the factors affecting the choice of a fruit/vegetable shop of the sample population we asked the respondents to rate the following factors in a ranking scale of 1 to 5. a) b) c) d) e) Cleanliness of the shop Freshness of the fruits/vegetables Variety of fruits/vegetables available Price offered Location of the shop.
Both the clusters ranked freshness of the fruits/vegetables on sale higher than the cleanliness of the shops. They also said that the variety offered was not an important factor while choosing a shop whereas price was a crucial factor. The respondents said that they are willing to travel all the way to Udupi to purchase their vegetable/fruits just because they were available there at a cheaper price and better quality. The final cluster centers from the cluster analysis are shown below.
Final Cluster Centers Cluster students 1. Availability of juice 2. Avail. Of Groceries 3. Avail. Nearby groceries 4. Time of the day 1. Gender 2. Age Grp 3. Marital Status 4. Occupation 1. Impulsive/nonImpulsive 3 3 3 2 2 3 2 2 1.52 family 1 1 2 2 1 4.5 1 5 1.77
2. Clean Shop 3. Freshness 4. Variety 5. Price 6. Location
2.96 1.24 3.96 3.24 3.6
3.23 1 4 2.77 4
We can summaries the consumer segments obtained from the cluster analysis as follows. Variable/Attribute Weekly expenditure on fruits and vegetables Avg. Age of respondents Respondents occupation Other variables Student/Bachelor Cluster Fruits - 107.27 Vegetables - 59.70 21 – 35 years Students, bachelors, working professionals. Impulsive buyers Family Cluster Fruits - 43.20 Vegetables - 64.45 Greater than 35 years Working professionals, retired and housewives. Non- impulsive buyers
The graphs shown below represent the behavioral analysis and the psychographic analysis of the consumers.
3.5 3 2.5 2 1.5 1 0.5 0 Avalibility of juice Avail. Of Grocceries Avail. Nearyby Time of the day grocceries students family
Fig. Difference between the segments in reference to the convenience features available in fruits/vegetable stores.
1 2 Rank 3 4 5 Psychographic Analysis students family
Fig. Psychographic analysis of the consumer segments.
From the above graphs, we can clearly see how the 2 sets of consumer perceive different attributes like freshness of the fruits & vegetables, cleanliness of the shop, prices etc.
VEGETABLE & FRUIT MARKET SIZE ESTIMATION
One of the objectives of this marketing research project is to estimate the market size (in rupees) in Manipal. The project estimated the market size based on the responses given by both the vendors as well as the consumers. Market Size from the vendor perspective: From the vendor perspective, to estimate the market size, the average daily income of the vendors was collected. This information was collected through questionnaires that were administered in order to collect other information as well. On the whole 12 vendors were interviewed out of a total of 18 vendors that are present in Manipal. These 12 constitute the major players in the Manipal town. The below table highlights the daily income as mentioned by the vendors. In addition to this, the table also shows the average monthly income for all the vendors put together. Also as there are some minor players who would contribute to total of approximately 15% of the revenue earned by the other players, the income earned by them has been also included to get a final market value of Rs. 54,65,145.
Vendor #
1 2 3 4 5 6 7 8 9 10 11 12
Type of Shop
Retailer Retailer Retailer & Wholesaler Retailer Retailer Retailer Retailer Retailer Retailer Retailer Retailer Retailer TOTAL Average Monthly Income Average Monthly income for all vendors
Average income per day
3100 5500 102000 6300 5100 5300 2100 4700 4100 4300 6000 4800
153300 4752300 4752300 + 15% * 4752300 = 5465145
Market Size from the consumer perspective:
On the other hand, to estimate the market size from the consumer perspective, questionnaires were once again administered. The data collected pertinent to this part of the research included: 1. 2. 3. 4. 5. Top 3 options of fruits and vegetables chosen by consumers The average quantity and prices at which they were bought The frequency of purchase Whether the fruits and vegetables were bought for self consumption or for family consumption. Occupation of the consumer
The data on the fruit consumption was collected from only those consumers who actually consumer fruits. It was seen that out of the initial 65 students initially interviewed, only 34 bought fruits and hence the answers to the above questions were collected from them. The algorithm followed to estimate the average expenditure for every student and household for fruit and vegetables was as below: 1. Calculate the average cost of purchase for each of the 3 options of fruits and vegetables mentioned by the consumer. This would indicate the average purchase. 2. Once the average purchase is known, based on the frequency of purchase, the average purchase in rupees was calculated for a week’s duration. 3. This value was then adjusted depending on whether the consumer bought for self consumption or for household consumption. In case the consumption was for self, then the value was kept as
it is. In case it was for his/her family, then the average expenditure was divided by 4 (the average household size in Manipal is 3.92). 4. Then depending on the occupation, the individual average expenditures were calculated and are as shown in the below table. Occupation Students Households Average Expenditure on Fruits per week (in Rs) 107.27 59.70 Average Expenditure on vegetables per week (in Rs) 43.20 64.45
Out of a total of 103 respondents, only 34 students purchased fruits and 19 purchased vegetables. On the other hand, 62 households purchased fruits whereas 39 households purchased vegetables. The main reason why the number of households was less for purchase of vegetables was due to the fact that they were not able to provide relevant information due to the large variety of vegetables available and purchased by them. To get a more comprehensive picture of the market, the project estimated the market size of the top 3 fruit options that consumers purchased. The fruits that were considered under these included – Bananas, Apples, Oranges and Grapes. This calculation was done separately for both types of consumers i.e. those who consume fruits for themselves and for those who buy for household consumption. To estimate the market size for these fruits, the weekly purchase was considered for all those consumers who had mentioned these fruits as either one of the 3 options. To extrapolate this information to the complete Manipal town, the population of the whole town was determined. It was found that the permanent population was 15000 with an average household size of 3.92 (approximately 4) whereas the floating population (comprising mainly of students and professors) was 19000. Also considering the same percentages as before i.e. only 34 out of the 65 students consume fruits, the weekly purchases for students was extrapolated by the same factor. In the case of households, the number of households was determined by dividing the permanent population by 4. The below tables indicate the monthly market size in rupees for households. As seen the market size of the households for the 4 fruits is Rs 16,66,397 per month. (All values below are in Rs)
1 option
st
2 option
nd
3 option
rd
TOTAL per week
Amount per household /week
TOTAL per week for household
Monthly
Bananas Apple Orange Grapes
177 2221 330 157.5
194.25 2058 142.5 0
130.5 0 150 105
501.75 4279 622.5 262.5
9.838235294 83.90196078 12.20588235 5.147058824
36,893.38 3,14,632,3 45,772.06 19,301.47
1,47,573.53 12,58,529.412 1,83,088.24 77,205.88
4,16,599
16,66,397
The below tables indicate the monthly market size in rupees for students. As seen the market size of the households for the 4 fruits is Rs 32,01,164 per month. (All values below are in Rs)
Fruits
1 option
st
2 option
nd
3 option
rd
TOTAL per week
Amount per person/week
TOTAL per week for student 1,10,191
Monthly
4,40,764
11,78,884 6,07,292 9,74,424
Bananas Apple Orange Grapes
264 825 142.5 610
197.25 506 276 560
82 122 330 31
543.25 1453 748.5 1201
11.08673469 2,94,721 29.65306122 1,51,823 15.2755102 2,43,606 24.51020408
80.5255102
8,00,341
32,01,164
Hence as seen, the total market size for the top 4 purchased fruits in Manipal on the whole is Rs 48,67,561. The reason why only these 4 fruits were chosen is that approximately 80% of the respondents had chosen these fruits in more than 1 of their options. Hence as these formed the majority, only these were chosen as they would explain most of the fruit market size.
The same has been depicted using a chart to show the market size for each fruit from both the student and the household perspective.
Market Size
Grapes
Oranges Fruit Students & bachelors Apples Household
Bananas 0 500000 1000000 1500000
Market Size in Rs
Conclusions
Based on the analysis done and the findings of this research project, below are the conclusions we draw from the same. ? The vegetable and fruit marketing system in Manipal is comprised mainly of retail vendors who cater to the various consumers. The survey findings showed that fruit and vegetable prices was not a very dominant factor in purchasing for consumers. This was seen from the fact that most of the consumers gave rankings of less than or equal to 3. This was contrary to the initial understanding that price would be a decisive factor given that prices in Manipal are higher compared to surrounding regions. Based on the cross tabulation results, it was seen that students tend to prefer to buy on weekends whereas the family purchases mainly tend to be on a daily basis. But in general, the maximum traffic of consumers at the vendor shops is mainly in the evening times i.e. from 6:00 PM to 9:00 PM. The factors that affect the sales of the vendors are mainly the Monetary factor and the Economy factor. The economy factor comprises mainly of external factors like truck strikes, fuel prices etc. Consumers rely on factors that can be broadly classified into groups like Hygiene, Location, Convenience, Value Added services, and monetary factors. These are used by consumers to choose a particular vegetable and fruit vendor for their purchases. The consumers of the fruits and vegetables mainly fall into 2 segments – one is a segment comprising of students and bachelors while the other segment comprises of families. The average expenditure of the students and bachelors on fruits and vegetables was found to be Rs 107.27 and Rs 59.70 per week respectively. On the other hand, the average expenditure per household per week was found to be Rs 43.30 on fruits and Rs 64.45 on vegetables. From the consumer perspective, the market size of the top 4 purchased fruits – bananas, apples, oranges and grapes, was found to be Rs 32,01,164 for the student segment whereas for the family segment, it was determined to be Rs 16,66,397 per month. From the vendor perspective, the vegetable and fruit market was estimated to be Rs 54,65,146 per month.
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Limitations and Future Studies
Based on the research done, the below are some areas where further research could be done. ? One limitation of the study was that institutional buying was not considered. Given the number of canteens present in Manipal, a future study could be conducted to estimate the demand of vegetables and fruits consumed by these canteens. The reason why these were not considered in this study was that these canteens tend to make their purchases from Udupi rather than Manipal due to lower costs. A future study could also include the town of Udupi to get a bigger picture as many of the households tend to purchase from the Udupi market. The study did not consider those consumers who consume fruits indirectly through the intake of fruit juices and milk shakes. These could be considered as well in a different study. Also a study could be done to understand why some consumers do not consume fruits available in Manipal.
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References
Appendix
Vendor Specific Questionnaire
`Sir / Madam, we are first year students of T. A. Pai Management Institute. We are conducting a survey to study the fruits and vegetable marketing system present in Manipal. Your time and responses to this survey would be greatly appreciated.
1. Who are your most common customers? ? ? ? ? ? ? ? ? Family Housewives Maids Students Laborers Institutions / Mess Retailers Others:__________________________________
2. What is the average age group of your customers? ? ? ? ? ? ? ? ? < 21 21-25 26-30 31-35 35-40 41-45 46-50 > 50
3. What is the average number of customers you get per day? ? ? 11-20 21-30
? ? ? ?
31-40 41-50 51-60 > 60
4. What are the most commonly sold fruits? What are their average quantities and prices? Vegetables Bananas Apples Papaya Mausambi Orange Others: ? ? Average Quantity Sold Average Price Mark – Up / Average Wholesale Price
5. What are the most commonly sold vegetables? What are their average quantities and prices? Vegetables Tomatoes Potatoes Onions Coriander Cabbage Others: ? ? Average Quantity Sold Average Price Mark – Up / Average Wholesale Price
6. State which fruit sells the most during each month. Month January February March April May June July August September October Fruit Vegetable
November December
7. During what time of the day is the business maximum? ? ? ? ? ? Early Morning (before 9:00 AM) Morning (9:00 AM to 12:00 PM) Afternoons (12:00 PM to 4:00 PM) Evening (4:00 PM to 6:00 PM) Late Evening (6:00 PM to 9:00 PM)
8. What factors affect your daily sales? Factor Price Freshness of the fruits & vegetables Fuel Prices Strikes leading to shortage of fruits and vegetables Transport costs Variety in the fruits and vegetables sold Student and college vacations Credit Offered 1 2 3 4 5
9. Do you practice loss leadership? ? Yes ? If yes, name of the product(s) _________________________________________________ ? No
10. Do you vary the prices of the fruits and vegetables sold during the day? If so, during what time of the day. ? Yes ? If yes, time of the day _______________ ? No
11. Where do you procure your fruits and vegetables from? (Location of wholesaler / supplier) ___________________________________________________________________________
12. How many suppliers / wholesalers are there? ? ? ? ? 1 2 3 More than 3
13. How many suppliers do you procure your fruits and vegetables from? ? ? ? ? 1 2 3 More than 3
14. According to you what amount of loss is incurred by you due to: ? ? ? Wastage:_________________________ Spoilage:_________________________ Damages during transit:_____________________
15. According to you which fruit / vegetable is: ? ? ? Wasted:_________________________ Spoiled:_________________________ Damaged during transit:_____________________
Vendor Profile 1. Name of the Vendor - _______________________ 2. Educational background -___________________________________ 3. How long have you been in this business? - ___________________________________ 4. What type of shop do you own? ? ? ? ? ? Kirana Stores Condiments shop Fruit (only) shop Vegetable (only) shop Fruit and Vegetable shop
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Others
5. How many employees do you have? ? ? ? ? ? None (Self Managed) 1 2 3 More than 3
6. Where is the shop located? ? ? ? ? In a residential area:____________________________________________ Near a bus stop:________________________________________________ Near a college/school:___________________________________________ Others:_________________________________
7. What form of business are you into? ? ? Retailer Wholesaler
8. What is your average income per day? ? ? ? ? ? ? Up to Rs. 300 Rs. 300 – 600 Rs. 600 – 900 Rs. 900 – 1,200 Rs. 1,200 – 1,500 More than Rs. 1,500
9. What are your average expenses per day? ? ? ? ? ? ? Up to Rs. 300 Rs. 300 – 600 Rs. 600 – 900 Rs. 900 – 1,200 Rs. 1,200 – 1,500 More than Rs. 1,500
Consumer Specific Questionnaire
Sir / Madam, we are first year students of T. A. Pai Management Institute. We are conducting a survey to study the fruits and vegetable marketing system present in Manipal. Your time and responses to this survey would be greatly appreciated.
1. Whom do you generally buy fruits and vegetables for? ? ? ? ? Yourself For family Buying on behalf of an institution Others
2. How often do you buy fruits and vegetables? ? ? ? ? ? More than once a day Once day 2-3 times a week Once a week Others
3. When do you normally buy fruits and vegetables (time of the day)? ? ? ? ? ? ? Early Morning (before 9:00 AM) Morning (9:00 AM to 12:00 PM) Afternoons (12:00 PM to 4:00 PM) Evening (4:00 PM to 6:00 PM) Late Evening (6:00 PM to 9:00 PM) No particular preference of time
4. When do you normally buy fruits and vegetables (Day of the week)? ? ? Weekdays (Monday to Friday) Weekends (Saturday & Sunday)
5.How would you classify your buying behavior? ? Impulsive ? Planned
6. Rate the following factors on their importance while you choose a shop. (1 being lowest, 5 being highest) Factor Cleanliness of the shop Freshness of the fruits & vegetables Variety in the fruits & vegetables sold 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 1 2 3 4 5
7. Rate the following on a from 1 – 5 (1 being highest, 5 being lowest) Factor Cleanliness of the shop Freshness of the fruits & vegetables Variety in the fruits & vegetables sold Prices offered Credit facility offered Rank
8.What are the most commonly purchased fruits? What are their average quantities and prices? Fruits Average Quantity Sold Average Price
9. What are the most commonly purchased vegetables? What are their average quantities and prices? Vegetables Average Quantity Sold Average Price
Customer Profile 1. Name: ______________________________________ 2. Gender: Male / Female 3. Which of the following age groups do you belong to? ? ? ? ? ? ? ? ? 16-20 21-25 26-30 31-35 36-40 41-45 46-50 >50
4. Marital Status: Married / Unmarried 5. What is your occupation? ? Student ? Housewife ? Working Professional ? Teacher/Professor ? Retired ? Others
doc_155626751.docx
The fruits and vegetables market in Manipal has never been analyzed like this. This report carries out a study on the fruits and vegetables market. This study, therefore, aims to provide a descriptive overview of the fruits and vegetables market in Manipal. Its a marketing research(MR) report.
Descriptive Study of the Vegetable & Fruit Marketing System in Manipal
Table of Contents
Executive Summary PART 1 – Introduction
1. 2. 3. 4.
Profile of the Vegetables & Fruits market in Manipal Rationale of the project Objectives of the project Scope of the project
PART 2 – Objectives and Scope PART 3 – Research Methodology PART 4 – Data Analysis and Findings
1.
2. 3. 4. 5.
Market Profile a. Vendor Profile b. Consumer Profile Consumer Purchase Behavior Factor Analysis - Factors affecting vendors and consumers Cluster Analysis - Customer Segments Vegetable and Fruit Market Size Estimation
PART 5 – Conclusions PART 6 – Limitations and Future Studies PART 7 – References PART 8 – Appendix
1 Vendor Specific questionnaire 2 Consumer Specific questionnaire
Executive Summary
Part 1 - Introduction
For ages India has been an agrarian economy. It was only in the mid 1980’s that we started moving towards industrialization. Even in the times of automated machines and IT, agriculture plays an important role in the Indian economy. This sector accounts for over 20 percent of the Indian GDP and has seen a robust growth of 11-13 year on year for the last couple of years. One of the major contributors to this sector is the state of Karnataka. The districts of Bangalore (Rural and urban combined), Kolar, Belgaum and Dharward account for 15%, 12.4%, 9.95% and 9% of the total state’s production respectively. The district of Udupi accounts for only 1.5% of the state’s agricultural produce.
Rationale for the Project The fruits and vegetables market in Manipal has never been analyzed before although we transact in this market on a daily basis. This served as a motivation for us to carry out a study on the fruits and vegetables market. Our study, therefore, aims to provide a descriptive overview of the fruits and vegetables market in Manipal.
Objectives and Scope The major objective of this study is to be able to provide a descriptive overview of the fruits and vegetables market in Manipal. Hence, the study aims at identifying and studying all those aspects of the market that would give us an overview of the market. These aspects have been studied from both the customers as well as the vendor’s perspective.
Part 2 - Objectives & Scope
The major objectives of our study are given below:
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To arrive at a descriptive overview of the fruits and vegetables market in Manipal by studying all the various aspects involved. To analyze the factors affecting the purchasing behavior 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 consumer’s decision for choosing a particular vegetable and fruit shop while choosing a vendor To identify and segment the customers into different groups based on their behavioral, 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 consumers spend on fruits and vegetables To estimate the market size of the top 4 fruits in Manipal.
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Part 3 - Research Methodology
The research for our study was conducted in three phases. These phases are explained below:
? Pre – Survey Research In the first stage of our research we conducted Focused Group Discussions (FGD) to identify the more important variables on which we can conduct our study. The FGDs were conducted in Manipal as well as our college. The FGD enabled us to identify and define the scope of our research. Further, it served as the basis for the preparation of our questionnaire. Designing of questionnaires To design the questionnaires, we initially came up with the below dummy findings based on which the relevant questions were determined. ? Findings related to vendors o Demographic information o Consumer profile o Average turnover per day o Type of shop (Retailer, distributor) o Fruits / vegetables arsenal (Price & quantity sold) o Factors affecting price & sales of fruits / vegetables
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Findings related to consumers o Demographic information o Consumer Classification based on demographics o Frequency and loyalty of purchase o Time of purchase (Time of the day + day of the week) o Top three items purchased o Factors affecting the purchase decision
? Data Collection through Survey The survey was conducted using questionnaires, which were designed on the basis of the findings in the previous stage. We prepared two different questionnaires – one for the vendors and one for the customers.
The survey covered only those respondents who purchased fruits and vegetables. We used random cluster sampling to select respondents for our study. We divided Manipal area wise and randomly collected responses from these clusters that we had formed. In case of the vendors, we covered almost all the vendors in Manipal. The survey covered a total of 12 vendors and about 107 respondents.
? Data Analysis and Findings The data collected during the previous phase was analyzed using SPSS. We have applied the following statistical tools on the data:
(a) Cross Tabulations Cross tabulations have been used to look the purchasing behavior of different types of customers during different times. Two cross tabs have been prepared. The first one analyses the purchasing behavior of different sets of customers during different days of the week. The second cross tab looks at the purchasing patterns of different sets of customers during different times of the day.
(b) Cluster Analysis Cluster analysis has been used to segment the customers into clusters that show identical purchasing behavior. These clusters have been formed using psychographic variables. We have found two clusters of customers. The first cluster comprises of students, bachelors and working professionals. The second cluster includes housewives, working professionals, teachers / professors and retired individuals.
(c) Factor Analysis Factor analysis is used for determining the most important factors amongst all the factors that are being considered. We have used factor analysis from the vendors’ perspective and from the customers’ perspective. From the vendors’ perspective we have used factor analysis to determine the most important factors that affect his sales. From the customers’ viewpoint, we have analyzed the most important factors that determine a customer’s choice of vendor.
(d) Market Size Estimation Based on the responses from the consumers on their expenditures on the various fruits and vegetables as well as information on the average daily income from the vendors, we have estimated the market size of the top 4 fruits. In addition we have calculated a conservative estimate of the complete vegetable and fruit market in Manipal based on the vendor information.
Part 4 - Data Analysis & Findings
As specified, our study deals with the vegetables and fruits part of the agricultural product, the percentages as mentioned above are bound to reduce further. The fruits and vegetable market in Manipal is characterized by: ? ? ? ? The perishable nature of products warrants a strong and efficient distribution network. Size of the market. The seasonal nature of the demand. Predominance of student population and NRI’s leading to lesser price sensitivity.
With a total fixed population of about 16000-19000 plus an equivalent floating population, the town houses 15-20 retail shops of fruits and vegetables with a couple of wholesale dealers.
THE MARKET PROFILE
Vendor Profile
For the purpose of our study, we designed different questionnaires for the customers and the vendors. The data was analyzed and below are some of the characteristics of the vendors in the Manipal town. Nature of business: On the whole, the town of Manipal has around 18-20 major vendors out of which 12 were interviewed. It was seen that most of the vendors were retailers with an exception of 1 or 2 who were into the wholesale business as well. The type of shop varied from being a Kirana store (selling other general groceries) to being a pure fruit & vegetables shop. There were vendors who were into selling either fruits or vegetables as well. The below pie diagram give a view of the above information.
Breakup
15 10 5 0 Retailer Wholesaler Fruits only Vegetables only Fruits & Vegetables Kirana Store
Profile of consumers: Also given that the town has a mix of households, working professionals and students; it was found that most of the consumers for these vendors were from these categories. The age group of these consumers varied from 21 to 40 with some consumers being close to 50 as well.
Years in business: It was seen that all the vendors were in the business of selling fruits and vegetables for more than 5 years with some of them being there in the market for close to 15 years.
Number of employees: Most of the vendors self manage their shops with couple of them employing more than 2-3 employees.
Suppliers: The vendors primarily procured all the supplies from dealers based out of Bangalore, Mangalore, and Chikamangalore. Direct procurement from farmers from the surrounding region too was an option but was been exercised only by 18% of the sample. Given that these vendors acquire their fruits and vegetables from outside Udupi, it was seen that most of the vendors report a loss of 15-20% due to spoilage or damage during transportation.
Location of the vendors: As seen from the below pie chart, the shops are distributed throughout Manipal. They are located in residential areas, near colleges and hospitals and close to bus stops. Also the below map of the Manipal area shows the distribution of the shops across the different areas of Manipal. As seen, there is a uniform distribution of the shops.
Location
Near KMC 29% Near bus stop 21%
Near college/school 21%
Residential Area 29%
MAP
Time of maximum business: With regard to the time of the day when they saw maximum inflow of consumers, 50% of the vendors were found to have peak sales during both morning (6AM to 9AM) and evening (4PM to 9PM) times. Whereas the rest 50% of the vendors said that the sales peaked only during the evenings.
Peak Sale- Both Morning and Evening
0% Residential Area Near Educational Institute Bus Stand
Peak Sale- Only During Evening
Residential Area Near Educational Institute 50% Bus Stand
17% 33%
33%
67%
Customer Profile
The population of Manipal comprises of: ? ? ? ? ? Students Doctors and staff at KMC Teaching and non teaching staff at colleges Shop owners and staff Household population of 15000
For our analysis we surveyed 105 people. All the above mentioned sections of the population were covered in the survey. The survey was conducted mainly at points of sale. This helped us target the appropriate segment of society (those who shop for vegetables in Manipal). The buying pattern of individuals depends on many things like age, sex, profession, marital status etc. The demographic data was collected to analyze the impact of various demographic variables on the buying patterns.
Demographic Profile: The demographic profile of the sample is as follows: ? ? 40 of the 105 respondents were male and the rest 65 were females. The distribution of customers according to age is:
35 30 25 20 15 10 5 0
The distribution of customers according to profession is:
Consumer Classification
Others O c Retired c Teacher/Professor u p Working Professional a Housewife t i Student o n 0 12 5 8 33 8 39 5 10 15 20 25 30 35 40 45
No of consumers
Marital Status: The distribution of population according to occupation varies depending on the marital status. The distributions are as follows:
Married
Other Retired Teacher/professor Working professional Housewife Student 0 4 5 10 15 20 25 8 5 6 23 11
Unmarried
Other Retired Teacher/professor Working professional Housewife Student 0 5 10 15 20 25 30 35 0 35 40 2 10 1
The survey had a mix of married and unmarried consumers. This helped to get a larger view of the market.
Purchase Frequency & Loyalty: The frequency of purchase is as depicted in the chart below:
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
The market research also revealed that about 60% of the customers remained loyal to a particular shop of their preference while buying fruits as well as vegetables.
CONSUMER PURCHASE BEHAVIOR
Using cross tabulations we have analyzed the purchasing behavior of the customers across various times during the week and also during different times of the day.
Purchase behavior across days of the week:
The first cross tabulation studies the purchasing behavior of the customers during different days of the week. The table below shows the number and percentage of customers buying fruits and vegetables during two time frames – weekdays and weekends. Further, it also includes a column for customers having no particular time preference for purchasing fruits.
Occupation vs. Day of the week No Weekday Particular Occupation / Day of the Week Day 10 12 Students Count % within Occupation % within DayOfTheWeek 25.64% 26.32% 1 12.50% 2.63% 13 39.39% 34.21% 3 37.50% 7.89% 2 40.00% 5.26% 9 60.00% 23.68% 38 35.19% 100.00% 30.77% 27.91% 7 87.50% 16.28% 13 39.39% 30.23% 3 37.50% 6.98% 2 40.00% 4.65% 6 40.00% 13.95% 43 39.81% 100.00%
Weekend
Total
17 43.59% 62.96% 0 0.00% 0.00% 7 21.21% 25.93% 2 25.00% 7.41% 1 20.00% 3.70% 0 0.00% 0.00% 27 25.00% 100.00%
39 100.00% 36.11% 8 100.00% 7.41% 33 100.00% 30.56% 8 100.00% 7.41% 5 100.00% 4.63% 15 100.00% 13.89% 108 100.00% 100.00%
Housewife
Count % within Occupation % within DayOfTheWeek
Working professional Count
% within Occupation % within DayOfTheWeek
Teacher/Professor
Count % within Occupation % within DayOfTheWeek
Retired
Count % within Occupation % within DayOfTheWeek
Others
Count % within Occupation % within DayOfTheWeek
Total
Count % within Occupation % within DayOfTheWeek
As can be seen from the table above, most of the students (43.59%) prefer purchasing fruits and vegetables over the weekend. Further, most of the customers on the weekend (62.96%) happen to be students. One factor that contributes to this is that many students have few lectures on weekends while some have holidays. This would mean that they get a lot free time to do their shopping. A second inference that can be drawn from the cross tab given above is that most of the housewives (87.50%) make their purchases during the week rather than the weekend. The housewives purchase fruits and vegetables for the entire household. Further, they would be purchasing to meet their daily requirements as they would prefer to use fresh vegetables.
Purchase Behavior across different times of the day:
The second table given below shows the relationship between the purchasing patterns of the customers during different times of the day across different types of customers. It also includes a column for customers not having any particular preference as regards the time of the day.
Occupation vs. Time of The Day Morni ng (9 AM to 12PM ) 0 0.00% 0.00% 4 50.00% 50.00% 2 6.06% 25.00% 1 12.50% 12.50% 0 0.00% 0.00% 1 6.67% 12.50% 8 7.41% 100.00% 2 5.13 % 22.22 % 2 25.00 % 22.22 % 2 6.06 % 22.22 % 0 0.00 % 0.00 % 2 40.00 % 22.22 % 1 6.67 % 11.11 % 9 8.33 % 100.0 0% Afterno ons (12 PM to 4PM) 2 5.13% 50.00% 0 0.00% 0.00% 1 3.03% 25.00% 0 0.00% 0.00% 0 0.00% 0.00% 1 6.67% 25.00% 4 3.70% 100.00 % Eveni ng (4 PM to 6PM) 9 23.08 % 42.86 % 0 0.00 % 0.00 % 9 27.27 % 42.86 % 3 37.50 % 14.29 % 0 0.00 % 0.00 % 0 0.00 % 0.00 % 21 19.44 % 100.0 0% Late Eveni ng (6:00 PM to 9:00 PM) 19 48.72 % 35.85 % 2 25.00 % 3.77 % 18 54.55 % 33.96 % 3 37.50 % 5.66 % 3 60.00 % 5.66 % 8 53.33 % 15.09 % 53 49.07 % 100.0 0% No particu lar prefere nce of time 7 17.95% 53.85% 0 0.00% 0.00% 1 3.03% 7.69% 1 12.50% 7.69% 0 0.00% 0.00% 4 26.67% 30.77% 13 12.04% 100.00 %
Occupation / Time of the Day
Early Morning (before 9 AM)
Students
Count % within Occupation % within TimeOfTheDay Count % within Occupation % within TimeOfTheDay Count % within Occupation % within TimeOfTheDay Count % within Occupation % within TimeOfTheDay Count % within Occupation % within TimeOfTheDay Count % within Occupation % within TimeOfTheDay Count % within Occupation % within TimeOfTheDay
Housewife
Working professional
Teacher / Professor
Retired
Others
Total
From the cross tab above, we can see that most of the customers (49.07%) prefer purchasing their fruits and vegetables late in the evening in the 6.00pm to 9.00 pm time bracket. Most of the students (48.72%) and working professionals (54.55%) prefer to make their purchases in this time bracket. This can be attributed to fact that students would be having lectures till evening while the working
professionals would be busy at work till the evening. Hence, vendor’s sales peaks during the time bracket of 6.00pm to 9.00 pm. The housewives, however, preferred to purchase fruits and vegetables before 9.00 am. This validates our earlier conclusion that the housewives prefer to purchase fresh fruits and vegetables. Since they want to purchase fresh vegetables for their daily requirements, they make their purchases everyday in the morning.
Factor Analysis
Factor analysis is a useful method of reducing data complexity by reducing the number of variables being studied into a smaller set of factors. It basically tries to uncover what are the significant drivers of a customer’s buying behavior. By analyzing correlations between variables it reduces the number into fewer factors which explain much of the original data, more economically.
Factors that affect the sales of the vendors:
Our objective was to find out the different factors which affect the daily sales of the vendors and to find out the demographic profile of its consumers. To find out the same we constituted a study among vendors and tabulated our findings. We asked them to rate on a Likert scale 1=lowest and 7= highest ) the importance they attached to the various variables. The variables what we chose are as follows. Factor Price Freshness of the fruits & vegetables Fuel Prices Strikes leading to shortage of fruits and vegetables Transport costs Variety in the fruits and vegetables sold Student and college vacations Credit Offered 1 2 3 4 5
Methodology We tabulated data from the above study and analyzed it using the SPSS package.
Interpretation of output
Total Variance Explained Extraction Sums of Squared Initial Eigenvalues % of Component 1 2 3 4 5 6 7 Total 3.705 2.215 1.269 .546 .182 .083 7.011E17 8 -8.399E17 Variance 46.316 27.690 15.859 6.828 2.272 1.035 8.763E-16 Cumulative % 46.316 74.006 89.865 96.692 98.965 100.000 100.000 .000 .000 .000 Total 3.705 2.215 1.269 Loadings % of Variance 46.316 27.690 15.859 Cumulative % 46.316 74.006 89.865 Total 3.037 2.683 1.469 Rotation Sums of Squared Loadings % of Variance 37.966 33.533 18.366 Cumulative % 37.966 71.498 89.865
-1.050E-15
100.000
Extraction Method: Principal Component Analysis.
Rotated Component Matrix
a
Component 1 Price Freshness Fuel Prices Strikes Transport costs Variety College Student Vacation Credit Offered -.167 -.298 .856 .975 .821 -.569 .424 .244 2 .210 .939 .099 -.041 .503 .145 .836 .879 3 .904 -.096 .023 -.074 .177 -.672 .038 .390
As is evident for the table 1 we find that the three factors accounted together for 89.65% of the total variance. Hence we have reduced the number of variables from 1 to 8 to 3 underlying factors. Looking at the above table we can say that Fuel prices, strikes and transport costs have a high loading on factor 1 i.e. .856, .975 and .821 respectively. This implies that factor 1 is a combination of 3 variables and we can term it as “Economy Factor”. Again we see that for factor 2 freshness, college student vacation and credit offered have the highest loadings. But these variables combined do not tell us any anything. Hence we exclude this factor. For factor 3 the only variable which constitutes a high loading is price. Hence this factor which we term as “Cost Factor” will constitute of only one variable.
Factors that influence the consumer’s decision for choosing a vendor:
Our objective was to find out the different factors affecting the buying behavior of consumers in Manipal. For the same we carried out a survey among respondents to find out the topmost reasons affecting their buying behavior. They were asked to indicate on a Likert scale ( 1= lowest 5 = highest) the weightage they assigned to the different variables. The variables were as follows Factor Cleanliness of the shop Freshness of the fruits & vegetables Variety in the fruits & vegetables sold 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 1 2 3 4 5
Methodology We tabulated data from the above study and analyzed it using the SPSS package.
Interpretation of output
Total Variance Explained Extraction Sums of Squared Initial Eigenvalues % of Component Total 2.418 1.752 1.427 1.155 1.000 .839 .653 .531 .454 .400 .370 Variance 21.980 15.931 12.976 10.499 9.094 7.627 5.941 4.825 4.131 3.632 3.363 Cumulative % 21.980 37.911 50.887 61.386 70.480 78.108 84.049 88.874 93.005 96.637 100.000 Total 2.418 1.752 1.427 1.155 1.000 Loadings % of Variance 21.980 15.931 12.976 10.499 9.094 Cumulative % 21.980 37.911 50.887 61.386 70.480 Total 1.813 1.613 1.514 1.425 1.388 Rotation Sums of Squared Loadings % of Variance 16.482 14.667 13.762 12.950 12.618 Cumulative % 16.482 31.150 44.912 57.862 70.480
Extraction Method: Principal Component Analysis.
Rotated Component Matrix Component 1 .794 .754 .735 .091 .118 .043 -.005 -.020 .173 -.068 .124 2 .129 -.318 .167 .003 .094 .121 -.180 .028 .299 .741 .879 3 .130 .004 -.008 -.083 .083 -.071 .289 .884 .736 .267 .003 4 .219 .147 -.053 .858 .690 -.058 .273 -.124 .171 .133 -.016
a
5 -.049 .034 .065 -.063 .187 .894 .716 -.009 .169 .001 -.002
From the first table it’s quite evident that 5 factors extracted together account for 70.5% of the total variable. Thus from the original 11 variables we have reduced it to 5 factors. For factor 1 we found out that the top 3 variables which accounted for the highest loadings were freshness cleanliness and variety. Thus we can that Factor 1 is a combination of these 3 variables and these can be grouped under a single factor called “Hygiene Factor”. For factor 2 we find that groceries nearby and time of the day contribute heavily to the loadings with scores of .741 and .879 respectively. These 2 variables hence can be combined into one factor and termed as “Convenience Factor”. For factor 3 we observe that availability of juice/shakes and groceries in the same shop have very high loading of .884 and .736 respectively. These 2 variables can be clubbed into a single factor and interpreted as “Value added services” For factor 4 we can see that price and credit have high loading factors of .858 and .690. This factor comprising these two variables can be called as “Monetary factor” For factor 5 it’s evident that location and closeness have the highest loading factor, i.e. .894 and .716 respectively. This factor consisting for these two variables can be termed as “Location Factor”.
Customer Segmentation
The main goal of this research is the identification of different market segments based on relevant psychographic characteristics of consumers and description of these segments by means of their buying (consuming) behavior, geographic and social-demographic characteristics, in order to get a base for the target marketing. This segmentation was done using cluster analysis. Cluster Analysis is a multivariate procedure ideally suited to segmentation applications in marketing research. This is because a cluster, by definition, is a group of similar objects. And segmentation involves identifying groups of target customers who are similar in buying habits, demographic characteristics, or psychographics. It is not necessary that a cluster should be only of people. There could be cluster of brands for instance, which are similar to each other, and different from other clusters. The basic methods of clustering used in our research are 1. Hierarchical clustering or linkages methods. 2. Non-Hierarchical clustering or Nodal clustering. In our analysis we found 2 consumer groups which differ between themselves according to the psychological characteristics of the consumers. In order to describe these segments we detected
differences between these segments according to the geographic, socio-demographic and buying characteristics of the consumers. The below diagram highlights the basic model that we followed to cluster the consumers into the segments. Psychographic variables General attitude about fruit and vegetables Consumer Segments
Factor 1
Cluster 1 Attitude about quality/price ratio by fruit and vegetables
Analyse
Factor 2 Analyse Cluster
Attitudes about city markets like Udupi.
Cluster n Factor n
Based on the analysis using SPSS, we were able to differentiate the consumers into 2 clusters as below:
Cluster 1: The students and bachelors group The first cluster consisted mostly of students, bachelors and working professionals. They like in the age group of 21 – 35 years. We surveyed around 70 students from various colleges in Manipal. We found that most of them preferred to buy fruits and vegetables in the weekends. We found out these people are not interested in the shop they are buying from. They were only interested in the fruits and vegetables that they bought. Students responded in a positive way if the fruit shop also sold juices and milk shakes. Cluster analysis also showed that students show an impulsive behavioral pattern. One reason we could attribute to this behavior was the spending pattern of students. Unlike families who
Consumer segments
Attitude about the cleanliness and the variety offered.
Factor
have a strict fixed monthly budget, students in Manipal have a more flexible income and don’t mind spending as their hearts desire. Cluster 2: The Family people This cluster consisted mostly of housewives, working professionals, Teachers/Professors and retired individuals. We found that unlike singles, the respondents in cluster 2 liked to shop in the weekdays. These respondents were loyal to a particular shop. This is beneficial for both the seller and the customer. From the seller’s point of view, he gets a long time customer, and from the customer’s point of view, the customer is ensured of quality and price every time he purchases from the fruits/vegetable vendor. Families were not impressed if a shop had added features like a juice centre or if the shop sold groceries. To understand the factors affecting the choice of a fruit/vegetable shop of the sample population we asked the respondents to rate the following factors in a ranking scale of 1 to 5. a) b) c) d) e) Cleanliness of the shop Freshness of the fruits/vegetables Variety of fruits/vegetables available Price offered Location of the shop.
Both the clusters ranked freshness of the fruits/vegetables on sale higher than the cleanliness of the shops. They also said that the variety offered was not an important factor while choosing a shop whereas price was a crucial factor. The respondents said that they are willing to travel all the way to Udupi to purchase their vegetable/fruits just because they were available there at a cheaper price and better quality. The final cluster centers from the cluster analysis are shown below.
Final Cluster Centers Cluster students 1. Availability of juice 2. Avail. Of Groceries 3. Avail. Nearby groceries 4. Time of the day 1. Gender 2. Age Grp 3. Marital Status 4. Occupation 1. Impulsive/nonImpulsive 3 3 3 2 2 3 2 2 1.52 family 1 1 2 2 1 4.5 1 5 1.77
2. Clean Shop 3. Freshness 4. Variety 5. Price 6. Location
2.96 1.24 3.96 3.24 3.6
3.23 1 4 2.77 4
We can summaries the consumer segments obtained from the cluster analysis as follows. Variable/Attribute Weekly expenditure on fruits and vegetables Avg. Age of respondents Respondents occupation Other variables Student/Bachelor Cluster Fruits - 107.27 Vegetables - 59.70 21 – 35 years Students, bachelors, working professionals. Impulsive buyers Family Cluster Fruits - 43.20 Vegetables - 64.45 Greater than 35 years Working professionals, retired and housewives. Non- impulsive buyers
The graphs shown below represent the behavioral analysis and the psychographic analysis of the consumers.
3.5 3 2.5 2 1.5 1 0.5 0 Avalibility of juice Avail. Of Grocceries Avail. Nearyby Time of the day grocceries students family
Fig. Difference between the segments in reference to the convenience features available in fruits/vegetable stores.
1 2 Rank 3 4 5 Psychographic Analysis students family
Fig. Psychographic analysis of the consumer segments.
From the above graphs, we can clearly see how the 2 sets of consumer perceive different attributes like freshness of the fruits & vegetables, cleanliness of the shop, prices etc.
VEGETABLE & FRUIT MARKET SIZE ESTIMATION
One of the objectives of this marketing research project is to estimate the market size (in rupees) in Manipal. The project estimated the market size based on the responses given by both the vendors as well as the consumers. Market Size from the vendor perspective: From the vendor perspective, to estimate the market size, the average daily income of the vendors was collected. This information was collected through questionnaires that were administered in order to collect other information as well. On the whole 12 vendors were interviewed out of a total of 18 vendors that are present in Manipal. These 12 constitute the major players in the Manipal town. The below table highlights the daily income as mentioned by the vendors. In addition to this, the table also shows the average monthly income for all the vendors put together. Also as there are some minor players who would contribute to total of approximately 15% of the revenue earned by the other players, the income earned by them has been also included to get a final market value of Rs. 54,65,145.
Vendor #
1 2 3 4 5 6 7 8 9 10 11 12
Type of Shop
Retailer Retailer Retailer & Wholesaler Retailer Retailer Retailer Retailer Retailer Retailer Retailer Retailer Retailer TOTAL Average Monthly Income Average Monthly income for all vendors
Average income per day
3100 5500 102000 6300 5100 5300 2100 4700 4100 4300 6000 4800
153300 4752300 4752300 + 15% * 4752300 = 5465145
Market Size from the consumer perspective:
On the other hand, to estimate the market size from the consumer perspective, questionnaires were once again administered. The data collected pertinent to this part of the research included: 1. 2. 3. 4. 5. Top 3 options of fruits and vegetables chosen by consumers The average quantity and prices at which they were bought The frequency of purchase Whether the fruits and vegetables were bought for self consumption or for family consumption. Occupation of the consumer
The data on the fruit consumption was collected from only those consumers who actually consumer fruits. It was seen that out of the initial 65 students initially interviewed, only 34 bought fruits and hence the answers to the above questions were collected from them. The algorithm followed to estimate the average expenditure for every student and household for fruit and vegetables was as below: 1. Calculate the average cost of purchase for each of the 3 options of fruits and vegetables mentioned by the consumer. This would indicate the average purchase. 2. Once the average purchase is known, based on the frequency of purchase, the average purchase in rupees was calculated for a week’s duration. 3. This value was then adjusted depending on whether the consumer bought for self consumption or for household consumption. In case the consumption was for self, then the value was kept as
it is. In case it was for his/her family, then the average expenditure was divided by 4 (the average household size in Manipal is 3.92). 4. Then depending on the occupation, the individual average expenditures were calculated and are as shown in the below table. Occupation Students Households Average Expenditure on Fruits per week (in Rs) 107.27 59.70 Average Expenditure on vegetables per week (in Rs) 43.20 64.45
Out of a total of 103 respondents, only 34 students purchased fruits and 19 purchased vegetables. On the other hand, 62 households purchased fruits whereas 39 households purchased vegetables. The main reason why the number of households was less for purchase of vegetables was due to the fact that they were not able to provide relevant information due to the large variety of vegetables available and purchased by them. To get a more comprehensive picture of the market, the project estimated the market size of the top 3 fruit options that consumers purchased. The fruits that were considered under these included – Bananas, Apples, Oranges and Grapes. This calculation was done separately for both types of consumers i.e. those who consume fruits for themselves and for those who buy for household consumption. To estimate the market size for these fruits, the weekly purchase was considered for all those consumers who had mentioned these fruits as either one of the 3 options. To extrapolate this information to the complete Manipal town, the population of the whole town was determined. It was found that the permanent population was 15000 with an average household size of 3.92 (approximately 4) whereas the floating population (comprising mainly of students and professors) was 19000. Also considering the same percentages as before i.e. only 34 out of the 65 students consume fruits, the weekly purchases for students was extrapolated by the same factor. In the case of households, the number of households was determined by dividing the permanent population by 4. The below tables indicate the monthly market size in rupees for households. As seen the market size of the households for the 4 fruits is Rs 16,66,397 per month. (All values below are in Rs)
1 option
st
2 option
nd
3 option
rd
TOTAL per week
Amount per household /week
TOTAL per week for household
Monthly
Bananas Apple Orange Grapes
177 2221 330 157.5
194.25 2058 142.5 0
130.5 0 150 105
501.75 4279 622.5 262.5
9.838235294 83.90196078 12.20588235 5.147058824
36,893.38 3,14,632,3 45,772.06 19,301.47
1,47,573.53 12,58,529.412 1,83,088.24 77,205.88
4,16,599
16,66,397
The below tables indicate the monthly market size in rupees for students. As seen the market size of the households for the 4 fruits is Rs 32,01,164 per month. (All values below are in Rs)
Fruits
1 option
st
2 option
nd
3 option
rd
TOTAL per week
Amount per person/week
TOTAL per week for student 1,10,191
Monthly
4,40,764
11,78,884 6,07,292 9,74,424
Bananas Apple Orange Grapes
264 825 142.5 610
197.25 506 276 560
82 122 330 31
543.25 1453 748.5 1201
11.08673469 2,94,721 29.65306122 1,51,823 15.2755102 2,43,606 24.51020408
80.5255102
8,00,341
32,01,164
Hence as seen, the total market size for the top 4 purchased fruits in Manipal on the whole is Rs 48,67,561. The reason why only these 4 fruits were chosen is that approximately 80% of the respondents had chosen these fruits in more than 1 of their options. Hence as these formed the majority, only these were chosen as they would explain most of the fruit market size.
The same has been depicted using a chart to show the market size for each fruit from both the student and the household perspective.
Market Size
Grapes
Oranges Fruit Students & bachelors Apples Household
Bananas 0 500000 1000000 1500000
Market Size in Rs
Conclusions
Based on the analysis done and the findings of this research project, below are the conclusions we draw from the same. ? The vegetable and fruit marketing system in Manipal is comprised mainly of retail vendors who cater to the various consumers. The survey findings showed that fruit and vegetable prices was not a very dominant factor in purchasing for consumers. This was seen from the fact that most of the consumers gave rankings of less than or equal to 3. This was contrary to the initial understanding that price would be a decisive factor given that prices in Manipal are higher compared to surrounding regions. Based on the cross tabulation results, it was seen that students tend to prefer to buy on weekends whereas the family purchases mainly tend to be on a daily basis. But in general, the maximum traffic of consumers at the vendor shops is mainly in the evening times i.e. from 6:00 PM to 9:00 PM. The factors that affect the sales of the vendors are mainly the Monetary factor and the Economy factor. The economy factor comprises mainly of external factors like truck strikes, fuel prices etc. Consumers rely on factors that can be broadly classified into groups like Hygiene, Location, Convenience, Value Added services, and monetary factors. These are used by consumers to choose a particular vegetable and fruit vendor for their purchases. The consumers of the fruits and vegetables mainly fall into 2 segments – one is a segment comprising of students and bachelors while the other segment comprises of families. The average expenditure of the students and bachelors on fruits and vegetables was found to be Rs 107.27 and Rs 59.70 per week respectively. On the other hand, the average expenditure per household per week was found to be Rs 43.30 on fruits and Rs 64.45 on vegetables. From the consumer perspective, the market size of the top 4 purchased fruits – bananas, apples, oranges and grapes, was found to be Rs 32,01,164 for the student segment whereas for the family segment, it was determined to be Rs 16,66,397 per month. From the vendor perspective, the vegetable and fruit market was estimated to be Rs 54,65,146 per month.
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Limitations and Future Studies
Based on the research done, the below are some areas where further research could be done. ? One limitation of the study was that institutional buying was not considered. Given the number of canteens present in Manipal, a future study could be conducted to estimate the demand of vegetables and fruits consumed by these canteens. The reason why these were not considered in this study was that these canteens tend to make their purchases from Udupi rather than Manipal due to lower costs. A future study could also include the town of Udupi to get a bigger picture as many of the households tend to purchase from the Udupi market. The study did not consider those consumers who consume fruits indirectly through the intake of fruit juices and milk shakes. These could be considered as well in a different study. Also a study could be done to understand why some consumers do not consume fruits available in Manipal.
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References
Appendix
Vendor Specific Questionnaire
`Sir / Madam, we are first year students of T. A. Pai Management Institute. We are conducting a survey to study the fruits and vegetable marketing system present in Manipal. Your time and responses to this survey would be greatly appreciated.
1. Who are your most common customers? ? ? ? ? ? ? ? ? Family Housewives Maids Students Laborers Institutions / Mess Retailers Others:__________________________________
2. What is the average age group of your customers? ? ? ? ? ? ? ? ? < 21 21-25 26-30 31-35 35-40 41-45 46-50 > 50
3. What is the average number of customers you get per day? ? ? 11-20 21-30
? ? ? ?
31-40 41-50 51-60 > 60
4. What are the most commonly sold fruits? What are their average quantities and prices? Vegetables Bananas Apples Papaya Mausambi Orange Others: ? ? Average Quantity Sold Average Price Mark – Up / Average Wholesale Price
5. What are the most commonly sold vegetables? What are their average quantities and prices? Vegetables Tomatoes Potatoes Onions Coriander Cabbage Others: ? ? Average Quantity Sold Average Price Mark – Up / Average Wholesale Price
6. State which fruit sells the most during each month. Month January February March April May June July August September October Fruit Vegetable
November December
7. During what time of the day is the business maximum? ? ? ? ? ? Early Morning (before 9:00 AM) Morning (9:00 AM to 12:00 PM) Afternoons (12:00 PM to 4:00 PM) Evening (4:00 PM to 6:00 PM) Late Evening (6:00 PM to 9:00 PM)
8. What factors affect your daily sales? Factor Price Freshness of the fruits & vegetables Fuel Prices Strikes leading to shortage of fruits and vegetables Transport costs Variety in the fruits and vegetables sold Student and college vacations Credit Offered 1 2 3 4 5
9. Do you practice loss leadership? ? Yes ? If yes, name of the product(s) _________________________________________________ ? No
10. Do you vary the prices of the fruits and vegetables sold during the day? If so, during what time of the day. ? Yes ? If yes, time of the day _______________ ? No
11. Where do you procure your fruits and vegetables from? (Location of wholesaler / supplier) ___________________________________________________________________________
12. How many suppliers / wholesalers are there? ? ? ? ? 1 2 3 More than 3
13. How many suppliers do you procure your fruits and vegetables from? ? ? ? ? 1 2 3 More than 3
14. According to you what amount of loss is incurred by you due to: ? ? ? Wastage:_________________________ Spoilage:_________________________ Damages during transit:_____________________
15. According to you which fruit / vegetable is: ? ? ? Wasted:_________________________ Spoiled:_________________________ Damaged during transit:_____________________
Vendor Profile 1. Name of the Vendor - _______________________ 2. Educational background -___________________________________ 3. How long have you been in this business? - ___________________________________ 4. What type of shop do you own? ? ? ? ? ? Kirana Stores Condiments shop Fruit (only) shop Vegetable (only) shop Fruit and Vegetable shop
?
Others
5. How many employees do you have? ? ? ? ? ? None (Self Managed) 1 2 3 More than 3
6. Where is the shop located? ? ? ? ? In a residential area:____________________________________________ Near a bus stop:________________________________________________ Near a college/school:___________________________________________ Others:_________________________________
7. What form of business are you into? ? ? Retailer Wholesaler
8. What is your average income per day? ? ? ? ? ? ? Up to Rs. 300 Rs. 300 – 600 Rs. 600 – 900 Rs. 900 – 1,200 Rs. 1,200 – 1,500 More than Rs. 1,500
9. What are your average expenses per day? ? ? ? ? ? ? Up to Rs. 300 Rs. 300 – 600 Rs. 600 – 900 Rs. 900 – 1,200 Rs. 1,200 – 1,500 More than Rs. 1,500
Consumer Specific Questionnaire
Sir / Madam, we are first year students of T. A. Pai Management Institute. We are conducting a survey to study the fruits and vegetable marketing system present in Manipal. Your time and responses to this survey would be greatly appreciated.
1. Whom do you generally buy fruits and vegetables for? ? ? ? ? Yourself For family Buying on behalf of an institution Others
2. How often do you buy fruits and vegetables? ? ? ? ? ? More than once a day Once day 2-3 times a week Once a week Others
3. When do you normally buy fruits and vegetables (time of the day)? ? ? ? ? ? ? Early Morning (before 9:00 AM) Morning (9:00 AM to 12:00 PM) Afternoons (12:00 PM to 4:00 PM) Evening (4:00 PM to 6:00 PM) Late Evening (6:00 PM to 9:00 PM) No particular preference of time
4. When do you normally buy fruits and vegetables (Day of the week)? ? ? Weekdays (Monday to Friday) Weekends (Saturday & Sunday)
5.How would you classify your buying behavior? ? Impulsive ? Planned
6. Rate the following factors on their importance while you choose a shop. (1 being lowest, 5 being highest) Factor Cleanliness of the shop Freshness of the fruits & vegetables Variety in the fruits & vegetables sold 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 1 2 3 4 5
7. Rate the following on a from 1 – 5 (1 being highest, 5 being lowest) Factor Cleanliness of the shop Freshness of the fruits & vegetables Variety in the fruits & vegetables sold Prices offered Credit facility offered Rank
8.What are the most commonly purchased fruits? What are their average quantities and prices? Fruits Average Quantity Sold Average Price
9. What are the most commonly purchased vegetables? What are their average quantities and prices? Vegetables Average Quantity Sold Average Price
Customer Profile 1. Name: ______________________________________ 2. Gender: Male / Female 3. Which of the following age groups do you belong to? ? ? ? ? ? ? ? ? 16-20 21-25 26-30 31-35 36-40 41-45 46-50 >50
4. Marital Status: Married / Unmarried 5. What is your occupation? ? Student ? Housewife ? Working Professional ? Teacher/Professor ? Retired ? Others
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