a study on the competitive advantage of aavin over its rivals in the

Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.2 (7), July (2013) Online available at indianresearchjournals.com

44

A STUDY ON THE COMPETITIVE ADVANTAGE OF AAVIN OVER ITS

RIVALS IN THE SALEM REGION: AN EMPIRICAL STUDY

DR.R.SUBRAMANIYA BHARATHY*;

MR.R.RAMESH**; MR.S.B.INAYATH AHAMED**

*ASSISTANT PROFESSOR,

PRIMS, PERIYAR UNIVERSITY,

SALEM. TAMILNADU, INDIA.

**PH.D., RESEARCH SCHOLARS,

PRIMS, PERIYAR UNIVERSITY,

SALEM. TAMILNADU, INDIA.

_____________________________________________________________________________________

ABSTRACT

India is the leading producer of milk in the world. It was in the year 1904 when the seed of

cooperation was sown in India with the passage of first Cooperative Act. Since then Cooperative

movement has made rapid strides in all fields of socioeconomic activities. Due to the White

revolution there is a fierce competition among the dairy firms to increase their market share in

India. Dairy Industry is undertaken by farmers to augment their income and it has been the

source of livelihood for the rural masses. In Tamilnadu, Salem is the leading producer of milk

and due to which many firms have started flooding in the market. It’s to be noted that Aavin is

the leader of the market in this region. It’s because of the various attributes Salem consumers

continue to be brand loyal to Aavin. This paper throws light on factors that promote the sales of

Aavin and to highlight the competitive advantage has over its rivals.

KEYWORD: Competitive Advantage, Cooperative Movement, ,White revolution. _____________________________________________________________________________________

INTRODUCTION

Indian agriculture today is characterized by decreasing farm size, increasing number of

operational holdings, higher degree of fragmentation and a declining contribution of agriculture

to Gross Domestic Product now standing at nearly 32%. It is an index of the diversification of

the economic base. The share of agricultural work force in total at the same time is not declining

and that the absolute number of people dependent on agriculture for jobs and income is to a low

absorptive capacity for Labour in industry. This calls for expansion of emerging high demand

sub-sector like livestock and dairying, horticulture, fisheries, poultry and forestry. There is an

Indian proverb that where cattle are properly cared for, civilization advances, land grows richer,

children grow healthier and debt becomes less, signifying the importance of dairying.

The unfavorable land-man ratio and fragmented land holdings combine make it difficult

to support large families on crop income alone. It is not surprising that the small farmer and the

landless are more often victims of money lenders and of natural calamities. Dairying, as

subsidiary source of income, is a real relief to most of these weaker sections of the society. Often

one or two milk animals enable these farmers to generate sufficient additional income to break

the vicious subsistence of agriculture-debt cycle.


45

RESEARCH METHODOLOGY

Research in common parlance refers to a search for knowledge. It can be defined as a

scientific and systematic search for pertinent information on a specified task.

In research it is the responsibility of the researcher to expose the research design to

evaluate before they are implemented. The researcher has to specify very clearly and precisely

what decisions he selects and why he selects them, so that others can evaluate it. So the adoption

of proper methodology is an essential step in conducting a research study.

RESEARCH DESIGN

Sampling and Sample Size

It refers to the technique or the procedure the researcher adopts in selecting items for the

sample. The sample design should be reliable and appropriate for the study which is to be

conducted.

Sample Size

The sample size should not be too small or too large, if more error will occur or more

time will be consumed. Hence an optimum sample size of 200 was taken.

Sampling Technique

Convenience sampling technique is used here. When population elements are selected for

inclusion in the sample based on the ease of access, it can be called as convenience sampling.

Data Collection Method

Primary and secondary data were collected for the study. Primary data are that, which are

collected fresh and for the first time and thus happens to be original in character. With the help

of questionnaire, the researcher collected the primary data. In this method a questionnaire is

given to the persons concerned with a request to answer the questions and return the

questionnaire.

The secondary data were collected through magazines, journals, websites and company

records.

DATA ANALYSIS AND INTERPRETATIONS

Table-1

Age and brand preference of Aavin milk

(Source: Primary Data)

S.NO. AGE GROUP (IN YEARS) NO. OF RESPONDENTS % OF RESPONDENTS

1. Below 25 50 25

2. 26-35 97 48.5

3. 36-45 32 16

4. Above 45 21 10.5

Total 200 100


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From the table, 48.5% of respondents belong to the age group 26-35 years. 25% of

respondents were of below 25 years. 26% of respondent6s belong to the age group 36-45 years.

10.5% of respondents are above 45 years. Thus it can be interpreted that majority of the

respondents are youngsters who are in the age of 26-35.

Table-2

Sex and Brand Preference of Aavin Milk

S.NO. SEX NO. OF RESPONDENTS % OF RESPONDENTS

1. Male 167 83.5

2. Female 33 16.5

Total 200 100


From the table it is interpreted that, 83.5% of respondents are male and 16.5% of

respondents are females.

Table-3

Marital Status and Brand Preference of Aavin Milk


From the table, it is interpreted that 86% of respondents are married and 24% of

respondents are unmarried.

Table-4

Education and Brand Preference of Aavin Milk [[[[[

S. NO. EDUCATIONAL LEVEL NO. OF

RESPONDENTS

% OF

RESPONDENTS

1. Illiterate 52 26

2. School level education 110 55

3. Collegiate 27 13.5

4. Professional 11 5.5

S. NO. MARITAL- STATUS NO. OF

RESPONDENTS

% OF

RESPONDENTS

1. Married 172 86

2. Unmarried 28 14

Total 200 100


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Total 200 100


The table reveals that 55% of respondents have completed school level education. 26 %

of respondents are illiterate. 13.5% of respondents are collegiate and 5.5% of respondents are

professionals.

Table-5

Occupation and Brand Preference of Aavin Milk


From the table, it is inferred that 46% of respondents are businessmen, 35.5% are

employees. 14% of respondents are agriculturists and 4.5% of respondents are professionals.

Table-6

Income and Brand Preference of Aavin Milk

S. NO. INCOME PER

MONTH (IN RS.)

NO. OF

RESPONDENTS

% OF

RESPONDENTS

1. Very low Income

(below 3,000/-) 19 9.5

2. Low income

(3,000 – 8,000/-) 28 14

3. Medium income

(8,000 – 10,000/-) 45 22.5

4 High Income

( Above 10,000/-) 108 54

Total 200 100


It is revealed from the table that 54%of respondents `earn more than 10,000. 22.5 % of

respondents have income range between 8000 to 10,000. 14% of respondents have income

between 3000 to 8000. 9.5% of respondents have income below Rs 3000.

S. NO. OCCUPATION No. OF

RESPONDENTS

% OF

RESPONDENTS

1. Employees 71 35.5

2. Businessmen 92 46

3. Agriculturalists 28 14

4. Professional 9 4.5

Total 200 100


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Table-7

Size of the Family and Brand Preference of Aavin Milk

S. NO. FAMILY SIZE No. OF

RESPONDENTS

% OF

RESPONDENTS

1. Very Small

(below 3 members) 52 26

2. Small (3-5 members) 128 64

3. Medium (6-8) 12 6

4. Large (Above 8 members) 8 4

Total 200 100


From the table, it reveals that 64% of respondents’ family size consists of 3 to 5

members. 4 % of respondents consist of very small family below 3 members. 6% of respondents

consist of 6 to 8 family members. 4% of respondents consist of more than 8 members in their

family. Thus it can be interpreted that majority of the respondents belong to small family, which

highlights the changing lifestyle of the customers-A shift from the joint family to nuclear family

Table-8

Requirement of Milk and Brand Preference of Aavin Milk

REQUIREMENT

OF MILK (IN LITRES) NO. OF RESPONDENTS % OF RESPONDENTS

Below 1 130 65

1-3 47 23.5

4-6 14 7

Above 6 9 4.5

Total 200 100


The table, reveals that 65% of respondents consume less than 1 liter of milk per day.23.5

% of respondents consume 1 to 3 liter of milk. 7 % of respondents consume 4 to 6 liters of milk.

4.5% of respondents consume above 6 liters of milk. Thus this finding supports the finding of the

previous table that in a nuclear family consumption of milk is less.

Table-9

Source of Milk

SOURCE NO .OF. RESPONDENTS % OF RESPONDENTS

Private milk 23 11.5

Aavin milk 130 65

Both (Private & Aavin milk) 47 23.5

Total 200 100



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23.5% of respondents procure milk from both private & Aavin milk vendor. 65% of

respondents procures milk from Aavin vender. 11.5 % of respondents procure milk from private

dairy milk. This shows that consumers prefer to buy the Aavin milk from the vendor. Thus it can

be interpreted that Aavin brand has got preference from majority of the respondents.

Table-10

The Respondent’s opinion about the reasons for Buying Aavin milk

REASONS NO .OF.

RESPONDENTS % OF RESPONDENTS

Price 140 70

Package 175 77.5

Quality 200 100

Quantity 200 100

Taste 168 84

Availability 130 65

Freshness 40 20

Door delivery 160 80


100% of respondents buy aavin milk for the quality and quantity. 84% of respondents for

the taste and 77.5% of respondents for the package. 80 % of respondents for the price. 65% of

respondents for the availability. 20 % of respondents for the freshness. This table helps the

researcher to make a major finding about the factors which makes Aavin the most preferable

brand. The major factor is found to be Quality of the milk and the Quantity package of the same.

However what arouses the curiosity of the researcher is that, the factor of freshness is chosen by

very less number of respondents, which shows that freshness is not considered as a criterion for

deciding the quality of milk. Next factor which are given importance by the respondents are taste

and door delivery. Thus it can be interpreted that the preference for Aavin milk is mainly

because of the quality, its taste, quantity, Package and the convenience in availability.

Table-11

The Respondent’s opinion about the reasons for buying private milk

REASONS NO .OF.

RESPONDENTS

% OF

RESPONDENTS

Price

135

67.5

Availability 120 60

Credit facility 169 84.5

Door delivery 172 86

Location advantage 117 58.5

Total 200 100


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The table reveals that 84.5% of respondents by private milk for the credit facility. 86 %

of respondents buy private milk for the door delivery service. 67.5% of respondents buy private

milk for the milk. 60 % of respondents buy private milk for availability. 58.5% of respondents

for the location advantage.

Table-12

Nature of Buying Aavin Milk

NATURE OF BUYING NO .OF.

RESPONDENTS

% OF

RESPONDENTS

Regular 148 74

Irregular 52 26

Total 200 100


74% of respondents are regular buyer of Aavin milk. 26% of respondents are irregular

buyers of Aavin milk. Thus it can be interpreted that most of the consumers buy Aavin milk are

brand loyals.

Table-13

The respondents’ opinion about the price of Aavin milk

FEATURES NO .OF.


Highly satisfied 102 51

Satisfied 25 12.5

Neither satisfied nor dissatisfied 30 15

Dissatisfied 37 18.5

Highly dissatisfied 6 3

Total 200 100


51% of respondents are highly satisfied the milk. 18.5% of respondents are dissatisfied

about the price of Aavin milk. 15 % of respondents are neither satisfied, not dissatisfied high

price. 12.5% of respondents the satisfied with price of Aavin milk. 3 % of respondents are highly

dissatisfied with price of Aavin milk.Thus it can be interpreted that Aavin products are priced to

the satisfaction of consumers.


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Table-14

The Respondents’ Opinion about the Package of Aavin Milk


49.5% of respondents are satisfied about the package of Aavin milk. 16% of respondents

are highly dissatisfied with the package. 15.5 % of respondents are dissatisfied with package. 13

% of respondents are highly satisfied with the package of Aavin milk. 6 % of respondents are

neither satisfied nor dissatisfied with the package. Thus it can be inferred that that packaging can

be improved as nearly 31.5 % of the respondents are dissatisfied with packaging. This is needed

to retain those customers as there are chances that they may switch to other brands which have

got better packaging.

Table-15

The respondents’ opinion about the quality of Aavin milk

FEATURES NO .OF.

RESPONDENTS

% OF

RESPONDENTS

Highly satisfied 113 56.5

Satisfied 32 16




Total 200 100


56.5% of respondents are highly satisfied with the quality of Aavin milk. 16% of

respondents are satisfied. 11.5% of respondents are dissatisfied with the, quality of Aavin milk.

10% of respondents are highly dissatisfied .6% of respondents are neither satisfied nor

FEATURES NO .OF.



Satisfied 99 49.5




Total 200 100


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dissatisfied. Thus it can be interpreted that the consumers are satisfied with the quality of Aavin,

which supports the finding that quality is the major factor for consumers to go for Aavin.

Table-16

The Respondents’ Opinion about the Quantity of Aavin Milk

FEATURES NO .OF.



Satisfied 48 24


Dissatisfied 17 8.5

Highly dissatisfied 3 1.5

Total 200 100


45% of respondents are neither satisfied nor dissatisfied with the quantity of Aavin milk.

24 % of respondents are 21% of respondents are highly satisfied about the quantity. . 8.5 % of

respondents are dissatisfied with the quality of Aavin milk. 1.5 % of respondents are highly

dissatisfied with the dissatisfied with quantity of Aavin milk.

Table-17

The respondents’ opinion about the taste of Aavin milk

FEATURES NO .OF.



Satisfied 60 30


Dissatisfied 40 20


Total 200 100


30 % of respondents are satisfied about the taste of Aavin milk. 21 % of respondents are

highly dissatisfied with the taste. 20 % of respondents are dissatisfied. 19 % of respondents are

highly satisfied. With the quality of Aavin milk. 10 % of respondents are neither satisfied nor

satisfied.


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Table-18

The Respondents’ Opinion about the Availability of Aavin Milk

FEATURES NO .OF.



Satisfied 27 13

Neither satisfied nor dissatisfied 17 8.5

Dissatisfied 70 35

Highly dissatisfied 26 13.5

Total 200 100


35% of respondents are dissatisfied with the availability of milk. 30 % of respondents are

highly satisfied about the availability of Aavin milk. 13.5% of respondents are highly dissatisfied

with the availability of milk. 13 % of respondents are satisfied with the availability of milk. 8.5

of respondents are neither satisfied nor dissatisfied with the availability of Aavin milk.

Table-19

The Respondents’ Opinion about the Freshness of Aavin Milk

FEATURES NO .OF.



Satisfied 34 17


Dissatisfied 46 23


Total 200 100


35% of respondents are highly satisfied about the freshness of Aavin milk. 23 % of

respondents are dissatisfied with the freshness of Aavin milk. 18 % of respondents are neither

satisfied nor satisfied with the freshness of milk.17 % of respondents are satisfied with the

freshness of milk. 7% of respondents are highly dissatisfied about the freshness of Aavin milk.


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Table-20

Problems Faced By the Respondents

PROBLEMS NO .OF.

RESPONDENTS

% OF

RESPONDENTS

High price 140 70

Taste and purity is not good in sometimes. 154 78

Fresh milk is not available in sometimes 130 65

Not available in early morning as door

delivery 144 72

Aavin milk is not available in 100 ml, 200

ml etc., 190 85

Not available in sometimes 160 80


85% of respondents are complaining that Aavin milk is not available in 100 ml, 200ml

etc. 80 % of respondents say that Aavin milk in not available at times. 78 % of respondents say

that taste and purity is not good sometimes. 72 % of respondents feel that door delivery in the

early morning is not available. 70 % of respondents feel that the price of Aavin milk in high. 65

% of respondents feel that freshness milk is not available sometimes.

Findings

A good majority of the respondents purchasing Aavin milk belonged to below 25 years category,

whereas a meagre percentage of respondents purchasing Aavin milk belonged to above 45 years

category.

o A good majority of the respondents preferring Aavin milk belonged to female category.

o A majority of the respondents purchasing Aavin milk belonged to married category.

o A good majority of the respondents purchasing Aavin milk belonged to school level

education, whereas minority of the respondents purchasing Aavin milk belonged to

professional course category.

o A majority of the respondents preferred to buy Aavin milk belonged to business group

category, whereas a meagre percentage of the respondents purchasing Aavin milk

belonged to professional.

o A good majority of the respondents preferred to buy Aavin milk belonged to high income

(Above Rs 10000/-) category.

o A good majority of the respondents purchasing Aavin milk belonged to small size family.

o A good majority of the respondents preferred to buy milk in the range of 1-3 litres per

day.

o A majority of the respondents are buying Aavin milk.


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o A majority of the respondents preferred to buy Aavin milk due to quality and quantity.

o A good majority of the respondents are buying private milk due to door delivery system.

o A good majority of the respondents agree that they are buying Aavin milk regularly.

o A majority of the respondents are dissatisfied with the price of Aavin milk.

o A good majority of the respondents are satisfied with the package of Aavin milk.

o A good majority of the respondents are highly satisfied with the quality of Aavin milk.

o A majority of the respondents are neither satisfied nor dissatisfied with the quantity of

Aavin milk.

o A majority of the respondents are satisfied with the taste of Aavin milk.

o A majority of the respondents are dissatisfied with availability of Aavin milk.

o A majority of the respondents are highly satisfied with freshness of Aavin milk.

o A majority of the respondents are satisfied with the door delivery system of Aavin milk.

o A good majority of the respondents complained that Aavin milk is not available in

100ml and 200ml.

SUGGESTIONS

A permanent sales counter with a coupon system in every urban area may be

implemented.

Sales depot may be increased in every area (urban & rural area).

It is found from the analysis that most of the respondents opined that the Aavin milk is

not available in 100ml, 200ml it is one of the major problems. Hence, due attention may

be given by SDCMPU Ltd to AAVIN milk.

The SDCMPU Ltd has to give wide publicity through effective media like T.V, Cinema,

Newspaper, Journals, etc.,

A few respondents lodged a complaint against the packaging system of Aavin milk .To

protect the health of the consumers, the SDCMPU Ltd may concentrate on a good

packaging system.

The researchers strongly recommended introducing the door delivery system in the urban

area for Aavin milk.

The researchers strongly recommended that the quality of the Aavin milk may be

enhanced.

Advertisements regarding milk and milk products of Aavin should be increased.

The respondents feel that the freshness of milk is not true. Their opinion should be

eliminated (or) justified in the organization.


56

It was recommended to follow the dual price system i.e., less or concessional price to the

domestic users and high price to commercial users.

Thickness of the Aavin milk may be improved.

Aavin milk should be available at any time in all areas. (Urban & rural area).

Aavin should increase the number of agent in Salem District.

Conclusion

The Indian dairy industry has made rapid progress since independence. A large number

of milk plants and product factories have been established. These organized dairies have been

successfully engaged in the routine commercial production of various milk products. Now a day

the consumer behavior is a very interesting subject to analysis. Generally the consumer buying

behavior is like a black box. There is a rise in the choosy nature of consumers. Consumers have

helped to upgrade their technologies of dairy firms. The study reveals that while purchasing for

dairy products consumers look for freshness, quality, taste and texture, validity and convenience.

The key challenge lies in making the milk affordable to all with all the necessary characteristics.

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3. Nair,K.N, “Milk production in kerala-Trends and Prospects”,Economic and Political

weekly,Vol 24(12813):1979.

4. Senthilkumar G.,Selvakumar K.N.,Prabhu M.,Meganathan N.,(2007).Factors Influencing

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5. Shankar Ravi(2004). „Indian Dairying-Vision 2020:Policy Intiatives for Excellence. „Indian

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a study on the competitive advantage of aavin over its rivals in the

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