A Study on Consumer Brand Preference on the Consumption of Cooking Oil of Various Income Groups in Chennai

Abstract

Indian markets from low-involvement to high-involvement product categories have been experiencing sweeping changes in the past decade. Changing lifestyles, fragmented market segments and consumer preferences, and intense competition from the brands of multinational corporations (MNCs) have made branding strategies a prerequisite for marketing success. India has been going through radical changes in the marketing arena in the last decade. Globalization in terms of multinational corporation (MNC) brands entering Indian markets, the emergence of young professionals in urban areas, the opening up of luxury and leisure markets, the impact of mass media and the influence of Westernization are some of the critical aspects which have forced Indian marketers to adopt branding strategies. These strategies have been formulated against the backdrop of an Indian culture which is strongly entrenched in the consumer psyche, and amidst changes in the social environment. Each year, India consumes over 10 million tonnes of edible oils. Edible oils have a high penetration of 90% in India. However, per capita consumption of edible oils is around 11 kg per year. The Indian edible oil market is the world’s fourth-largest after the USA, China and Brazil. A growing population, increasing rate of consumption and increasing per capita income are accelerating the demand for edible oil in India. This paper analyses the trend in edible oil consumption and also attempt has been made by the researcher to assess the consumer behavior on consumption of edible oils from various income groups. In India, most vegetable oil is purchased by household or industrial buyers (food processors, restaurants and hotels) for frying or baking needs and is sold as loose oil or vanaspati (partially hydrogenated vegetable oil). Only a small percentage of edible oils are sold in branded form at the retail level. Therefore Efforts will be made by the researcher to find out what kind of edible oil people consume, since there are varieties of edible oil like Palm oil, soya bean oil, mustard oil, groundnut oil, rice barn, and cotton seed oil and so on. For this purpose the researcher would be undertaking a survey taking using a pre planned structured questionnaire to test the influence factors of the customers to buying a particular brand of oil, to buy particular edible oil, amount of consumption, point of purchase and so on. Cluster sampling technique will be followed as customers of edible oil from high income, middle income and low income will be considered for this study. Based on the responses the researcher will have an idea about the fastest moving and the most preferred brand of edible oil , choice of a particular variety of edible oil , amount of consumption of edible oil and so on , most importantly all these information will be gathered based on the demographic profile of the consumers based on income composition .