B.radhika Heritage Cts Report
B.radhika Heritage Cts Report
B.radhika Heritage Cts Report
SUBMITTED BY
BANGARU RADHIKA
06 PGDM-FPBM 05
Ravi Shankar
Heritage Foods Ltd
SUBMITTED TO
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CERTIFICATE
This is to certify that the CTS report titled “Consumer behavior towards heritage
products” By Ms.B.Radhika submitted in partial fulfillment of PGDM-FPBM 2022-
24 is an original work and no part has been submitted or published for the award of
any degree or diploma.
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CERTIFICATE
Date:
Place:
3
DECLARATION
I hereby declare that the CTS report entitled “Consumer Behavior towards heritage
products” Submitted for the partial fulfillment of the requirements of Post Graduate Diploma
in Management (Food processing and Business Management) of Indian Institute of Plantation
Management (IIPM), Bengaluru is my original work and not submitted in partial or full for
the award of any other degree, diploma, fellowship or similar titles.
Date:
Place:
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ACKNOWLEDGEMENT
Additionally, I would like to thank the officials and other employees of HERITAGE MILK
PRIVATE LIMITED for their assistance during the course of my project work.
I also want to express my gratitude to the director of the Indian Institute of Plantation
Management for giving me the chance to start this project.
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EXECUTIVE SUMMARY
I have done my internship work in Heritage foods Ltd, focusing mostly on consumer
behaviour. I created a Google form to collect data on how consumers are behaving towards
Heritage products. My first month of internship involved in learning how to process milk
products, namely different types of milk, curd in sachet and cup form, Butter and Ghee, Lassi
variants, different flavours of Badam milk, sweets like doodh peda and milk cake, and cold
coffee in Gokul plant kasipentla, Tirupathi.
I spend ten days in the research and development department on three products: filter
coffee, Mango shakes, and chocolate shakes. I learned how the products are manufactured
and tested.
This research aims to determine consumer satisfaction levels and behaviours towards
Heritage Milk in the Andhra Pradesh, Karnataka, and Telangana regions. Such insights are
vital for the company's future strategies. Consumer behaviour, in this context, refers to the
actions and decisions consumers make when seeking, purchasing, using, evaluating, and
disposing of products and services they believe will fulfil their needs. It involves
understanding what, why, when, where, and how consumers make their purchases, how they
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use products, how they evaluate them post-purchase, and how these evaluations impact future
buying decisions, as well as how they dispose of the products.
The Heritage Foods Limited was founded by Mr. Nara Chandrababu Naidu in 1992,
which is one of the fastest growing Public Listed Companies in India. The company operates
in two business divisions: Dairy and Renewable Energy. In the financial year 2021-22,
Heritage Foods achieved an impressive annual turnover of over INR 26,429 million.
Currently, Heritage's milk and milk products enjoy a significant market presence in
various states including Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu,
Maharashtra, Odisha, NCR Delhi, Haryana, Rajasthan, Punjab, Uttarakhand, Himachal
Pradesh, Uttar Pradesh, and Madhya Pradesh.
Vision
Delighting every home with Fresh & Healthy products and empowering the farmers
Mission
To be a nationally recognized brand for Healthy and Fresh products with a revenue of
INR 6000 Crores
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To embrace the right technology to delight our Customers
Empowering the farmer community through our unique 'Relationship Farming' Model
Our commitments:
Milk producers:
Customers:
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Employees
Shareholders
Returns
Service
Suppliers
Society
MILK CURD
BUTTERMILK LASSI
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FLAVORED MILK PANNEER
BUTTER GHEE
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MILK POWDER COLD COFFEE
Unloading the cans from trucks on to the conveyor and weighed for
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Removing lids and plunging with plunger
v
Chilling through chiller at 4
Chilling @4℃
4 4
Regeneration Cream
Raw milk
1 40℃ separation Storage
<10℃
Regeneration
2 60℃
Heating
section 80
Homogenization
2500psi & 500 psi
Chilling @ 4
Packaging and
Dispatch
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FLOW CHART OF COOKING BUTTER PROCESS
Churning
Butter milk
Butter
Packaging
Churning for 30 – 40
Popcorn stage
Butter milk
Butter
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FLOW CHART OF GHEE PROCESS
Draining of butter
milk
Transfer of melted butter to
ghee boiler
Ghee storage
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Packaging and filling @43 - 45
FLOW CHART 0F BUTTERMILK PROCESS
Packaging
Dispatch
FLOW CHART OF CURD PROCESS
Receiving pasteurized
homogenized toned milk
Water
Cutting at required size
pasteurizati
on 80±3℃
Packing and Sealing under Vacuum
and Chilled
Sterilization
Heating 1 - 40℃
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Storage @ 5 to 7℃ in cold storage and
Heating 2 - 65℃
Heating 3 - 83℃
Holding – 10 min.
Heat to boil
Filtration
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Kept for drying (Minimum 12
hours)
Tableting and
Packaging
Fill N2 and CO2 gas during packaging (N2 gas–75%, CO2 gas–25%)
REVIEW OF LITERATURE
. Lars perner (2010) in the context of marketing, one might describe consumer attitude
as a simple combination of a customer's views, sentiments, and behavioural intentions toward
an item. In this context, a consumer may have either positive or negative thoughts or feelings
about a good or service. The consumer's perception or thoughts about the good or service
serve to define a behavioural intention.
Petty & lacioppo (2017) the consumer will choose between the two options based on
their level of motivation and participation. When the centre path is used, Consumer
involvement in every phase of the transaction is quite strong. When a consumer takes the
direct way, they make more efforts to learn about and comprehend the goods or services. As
the term suggests, a consumer with little engagement in the purchasing process takes the
peripheral route.
Our country produces a wide range of goods and services, which strengthens our
economy. Almost every product that is offered to customers has a variety of options.
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Customers who choose to purchase items have access to substitute products from providers.
Consequently, a seller spends the majority of his time trying to win over buyers.
Social class, culture, and subculture all have a significant role on consumer behaviour.
Culture is the primary factor that determines a person's desires and actions. Growing children
pick up beliefs, perceptions, preferences, and actions from their families and other important
institutions.
Deva raja performed price spread analyses for liquid milk across a range of marketing
channels in Karnataka. According to him, the marketing expenses for two private dairy plants
were Rs. 0.80 and Rs. 0.60 per litre, compared to Rs. 0.92, Rs. 2.04, and Rs. 0.60 for three
cooperative dairy plants. In the channel Producer-Milk Plant Consumer, accordingly, per
litre. The marketing margins for private dairy plants were Rs. 1.08 and Rs. 0.16 per litre of
milk, compared to Rs. 0.02, Rs. -2.86, and Rs. 1.36 for co-operative dairy plants. It was found
that private plants had higher marketing margins.
In their study on costs margins and price spreads in milk marketing in the Andhra
Pradesh district of Chittoor, Sujatha et al. discovered that the cost of marketing (per litre of
milk) was lowest in Channel-V (Producer-Milk Vendor-Private Milk Booth), followed by
Channel-I (Producer-Milk Vendor-Urban Consumer) (Rs. 1.50), Channel-V (Producer-Pri
(Producer - Private Dairy or Private Milk Booth Distributor or Urban Consumer). For the
aforementioned channels, the total marketing expense per litre of milk was calculated as Rs.
1.25, Rs. 1.50, Rs. 4.2, and Rs. 4.40, respectively. Additionally, they discovered that
Bhargava and his colleagues obtained the highest price for milk producers, at Rs. 8.92 per
litre, in Channel (AJAEES, 40(10): 307-317, 2022; Article no. AJAEES.89837 309).
Channel-V is priced at Rs. 7.75, Channel- and Channel-V are each priced at Rs. 7.5, and
Channel- has the lowest price at Rs. 7.15. The highest milk price in Channel I, Rs. 8.92 per
litre, was undoubtedly caused by the lack of a middleman to connect the producer and the
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consumer. Apart from Channel I, which was a direct channel-III, it was determined that the
dairy producers earned the biggest percentage of the consumer price in channel II.
Boopathi.B (1999) (1999) the world's largest producer of dairy products is India. The
dairy sector in India has grown significantly over time. Both in the rural and urban parts of
India, there is a considerable increase in demand for dairy products. The number of
individuals relocating from rural to urban regions is increasing. Resulting in a rise in the need
for dairy products. Tamil Nadu is one of India's top 10 milk-producing states. An important
source of milk for Tamil Nadu is the milk producer's union known as Aavin. It buys milk,
processes it, and then sells consumers milk and milk-related goods. This study investigates
customer perceptions of the Aavin with a focus on the Tamil Nadu state's Pollachi Taluk.
According to James C. Cox (2000) in the economic journal, consumer economics has
always functioned under the presumption that consumers desire the most value or happiness
that money can buy. In order to facilitate consumer choice, goods and services must be
categorized according to the value they offer. In the study of consumer choice, presumptions
about consumer behaviour and preference formation are used.
John McKean (2001) wrote the amazing book Customers are People. Human contact
Think of the interactions between your business and customers as a series of cascading touch
points. The environment of the consumer is made up of these contact points, and interactions
with the environment are how the consumer develops their preferences. The idea that
customers could prefer one product or service over another is not new. The component of
such preference decisions may now be measured precisely and reliably for the first time.
Some of the major issues with conventional customer satisfaction studies have been made
clearer with the research of consumer behaviour in this field. Most crucially, studies on
customer satisfaction throughout the years have revealed that high levels of customer
satisfaction do not always translate into loyal patronag.
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RESEARCH METHODOLOGY
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Understanding the interests of clients and providing education about Heritage
products.
Enhancing knowledge about the products and their constituents.
Gaining insights into the market and competitors.
Identifying effective ways to educate customers about the products and their buying
behaviour.
TYPE OF RESEARCH
The type of research utilized for this project is Qualitative Research. This approach
involves gathering, examining, and interpreting information based on what individuals say
and do. It focuses on understanding the meanings, definitions, traits, symbols, and metaphors
associated with the subject. Qualitative research is subjective and employs various
information-gathering techniques, such as individual in-depth interviews and focus groups.
The data gathered is predominantly non-numerical and emphasizes verbal data over
numerical data. The analysis process involves interpretation, which can be arbitrary,
impressionistic, or diagnostic. This type of research is exploratory and flexible in nature. For
this assignment, qualitative research was conducted, and data was collected through informal
conversations with the team.
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RESEARCH DESIGN
The research design outlines the methods and processes to be used in the study to
achieve the research objectives. In this case, a Descriptive Research Design was employed.
The descriptive research involved gathering data on existing products and did not include the
development of new products.
The data for this project was collected from primary sources.
Primary Data: Primary data was obtained through various approaches such as surveys, in-
depth interviews, process observations, and questionnaires. For this research, primary data
was gathered through casual conversations with experts and field observations conducted
while interacting with customers in typical situations.
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2 persons 3 persons
4 persons Above 4 persons
Type of milk No. of respondents Percentage (%)
Cow milk 30 18.8
Buffalo milk 40 25.0
Packed milk 90 56.3
Total 160 100.0
INTERPRETATION:
The table represents data on the distribution of family sizes based on the responses of
160 participants. It indicates that the majority of families have 3 or 4 members, comprising
28.1% and 37.5% of the total, respectively. Smaller families with 2 members constitute
18.8%, while families with more than 4 members represent 15.6%.
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Type of milk
19%
56%
25%
INTERPRETATION:
The provided table illustrates preferences for different types of milk among 160
respondents. Notably, a significant proportion of respondents (56.3%) opt for packed milk.
Buffalo milk is favoured by 25% of the participants, while cow milk is the choice for 18.8%.
This data provides insights into milk consumption patterns and preferences within the
surveyed group.
VARIANTS OF MILK
DTM 8 5
FCM 112 70
TM 10 6.25
30
GCM 6 3.75
STD 24 15
VARIANTS OF MILK
DTM
STD 5%
15%
GCM
4%
TM
6%
FCM
70%
INTERPRETATION:
QUANTITY OF MILK
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Pack size
Total 160
1 liter 32
500ml 102
200ml 26
INTERPRETATION:
The table illustrates the distribution of preferred pack sizes among 160 respondents.
The majority of participants (63.8%) prefer the 500ml pack size, indicating its popularity.
The 1-litre pack size is the choice of 20% of respondents, while the smallest 200ml pack size
is preferred by 16.3% of the surveyed group.
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AWARENESS ABOUT HERITAGE PRODUCTS
Awareness
80
70
60
50
40
30
20
10
0
Very well Better Good
INTERPRETATION:
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The data presented in the table indicates the level of awareness among 160
respondents. The majority (46.9%) claim to have a "Better" awareness, while a significant
portion (37.5%) believes they are "Very well" informed. A smaller segment (15.6%)
considers their awareness level as "Good." This distribution provides insights into the varying
degrees of awareness within the surveyed group.
PLACE OF PURCHASE
Place of purchase
115
28
17
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INTERPRETATION:
The table illustrates the distribution of preferences among 160 respondents for
different places. A significant majority (72%) of participants favour "Heritage parlours,"
suggesting a strong inclination towards these establishments. Supermarkets attract 18% of
respondents, while local shops have a smaller share of 11%. This data provides insights into
the favoured places for various activities within the surveyed population, showcasing a clear
preference for heritage parlours over other options.
40 28
20 22 18
10 13 14
20 6
0
No.of respondents Percentage(%)
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INTERPRETATION:
The chart represents distribution of preferences for different brands among 160
respondents. The brand "Heritage" captures the largest share at 50%, indicating its strong
popularity. "Sangam" follows with 18%, while "Vijaya" and "Tirumala" each gather 14% and
13% respectively. A smaller segment of 6% shows interest in "Others." This information
provides valuable insights into the brand preferences within the surveyed group, underscoring
the significant appeal of the "Heritage" brand among the respondents.
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YEARS OF EXPERIENCE WITH HERITAGE PRODUCTS
Years of experience
100.0
160
28.1 30.6
23.1
18.1 45 49
29 37
INTERPRETATION
The chart represented the distribution of years of experience among 160 respondents.
The majority of respondents fall into the "1-2 years" category, constituting 30.6% of the total,
indicating a relatively balanced spread of experience. Notably, participants with "6 months -
1 year" and "More than 2 years" of experience account for 28.1% and 23.1% respectively.
Those with less than six months of experience make up 18.1% of respondents. This data
offers insights into the experience levels within the surveyed group, with a significant portion
of respondents having gained experience between 1 and 2 years.
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INFLUENCE OF MEDIA
Media influence
160
100
70
50
40 44
31 25
INTERPRETATION:
The chart represents the sources of information or influence in the lives of 160
respondents. Among the options, "Friends" emerge as a significant source, with 44% of
respondents relying on this group for information or influence. "Family" accounts for 31%,
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while "Advertisements" play a role for 25% of participants. This data suggests that friends
play a substantial role in shaping the opinions and decisions of the surveyed individuals,
followed by family and advertisements, providing insights into the diverse channels through
which people gather information and form their preferences.
Influencing factors
100
Total 160
Advertisement 610
16
Packaging 26
20
Price 32
58
Quality 92
0 20 40 60 80 100 120 140 160 180
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INTERPRETATION:
The table outlines the factors that influence the opinions and decisions of 160
respondents. Notably, "Quality" is the most significant influencer, with 58% of respondents
considering it a key factor. "Price" follows at 20%, while "Packaging" holds influence for
16% of participants. "Advertisement" has the lowest impact, with only 6%. This data
underscores the prominence of quality as a determining factor in decision-making, suggesting
that respondents prioritize it over other factors such as price and packaging when making
choices.
SATISFACTION LEVEL
Satisfaction level
160
120
80
40
0
fie
d ied fie
d
fie
d tal
ta is tis
f
ta is ta is To
s Sa s s s
h ly
r di di
s
ig no hl
y
H d ig
fie H
ta is
r s
he 40
eit
N
The data illustrates the satisfaction levels of 160 respondents. A majority (60.0%)
express being "Satisfied," while 30.6% report being "Highly satisfied." A smaller portion
(6.3%) indicates being "Neither satisfied nor dissatisfied," and a minimal percentage (3.1%)
claims to be "Highly dissatisfied." This data reveals a positive overall sentiment, with a
significant portion of respondents expressing satisfaction, and only a small group expressing
dissatisfaction. It indicates a generally favourable impression of the subject under
consideration among the surveyed individuals.
RANK OF QUALITY
Quality ranking
180
160
140
120
100
80
60
40
20 41
0
Excellent Good Average Poor Total
The data showcases the quality ranking opinions of 160 respondents. Notably, over
half (51.9%) view the quality as “Excellent,” while 31.3% perceives it as "Good." A smaller
proportion of 13.1% rates it as "Average and merely 3.8% consider it "Poor." These findings
underscore a predominant positive sentiment regarding the quality, with the majority
expressing satisfaction with the product or service's performance.
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Price
90
80
70
60
50
40
30
20
10
0
No.of respondents Percentage(%)
INTERPRETATION:
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Product No.of respondents Percentage (%)
Milk 25 15.6
Ice cream 10 6.3
Badam milk 17 10.6
Lassi 15 9.4
Curd 20 12.5
Ghee 22 13.8
Doodpeda 20 12.5
Milk cake 2 1.3
Paneer 10 6.3
Butter 12 7.5
Cold coffee 7 4.4
Total 160 100.0
Performance
30
25
20
15
10
5
0
i ee a e r r e
i lk ea
m il k ss
cu
rd ed ak ee t te ffe
M cr m La Gh p c
Pa
n
Bu o
e am od ilk ld
c
Ic d Do M
Ba Co
INTERPRETATION:
The data table depicts the preferences of 160 respondents towards various dairy
products. "Milk" is the most favoured, with 15.6% of respondents selecting it. "Ghee" and
"curd" follow closely, with 13.8% and 12.5% respectively. Other products like "Badam
milk," "DoodPeda," and "Paneer" also garner notable percentages. Interestingly, products like
"Milk cake" and "Cold coffee" have lower representation, implying they might be less
preferred among the surveyed individuals. This data provides insights into the popularity of
different dairy products, helping to understand the consumer preferences within the given
group.
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FINDINGS
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Performance of Products: "Milk," "Ghee," and "Curd" are the top-performing
products, while products like "Milk cake" and "Cold coffee" have lower preferences.
SUGGESTIONS
Diversify Product Range: Given the strong preference for FCM, consider offering
more variants and flavours to cater to diverse tastes.
Promote Smaller Pack Sizes: While the 500ml pack size is popular, promoting the 1-
litre and 200ml pack sizes might encourage more variety in consumption.
Strengthen Branding: Capitalize on the strong preference for the "Heritage" brand
by enhancing marketing efforts and brand visibility.
Enhance Advertising Impact: Although advertisements have a relatively low
influence, investing in creative and impactful advertising strategies could potentially
yield better results.
Maintain Quality: As quality is a significant influencing factor, continue focusing on
product quality to sustain customer satisfaction.
Expand Outreach: Given the influence of friends and family, consider implementing
referral or loyalty programs to leverage word-of-mouth marketing.
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CONCLUSION
The collected data and its interpretation provide valuable insights into consumer preferences,
behaviours, and sentiments related to dairy products, particularly those offered by the
"Heritage" brand. The findings indicate a strong preference for quality, moderate-sized
families, and packed milk. The data also highlights the influence of friends and family,
underscoring the importance of interpersonal relationships in shaping consumer choices. The
"Heritage" brand emerges as a key player in the dairy market, with its products enjoying
popularity across various categories. These insights can guide strategic decisions, allowing
for targeted efforts to enhance product offerings, marketing strategies, and customer
satisfaction to continue meeting consumer needs and preferences effectively.
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QUESTIONNAIRES
A. Cow Milk
B. Buffalo Milk
C. Packed milk
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C. 1000 ml
A. Supermarkets
B. Retail shops
C. Marts
D. Heritage parlours
7. What is the preference of these other milk brands?
A. Heritage
B. Tirumala
C. Vijaya
D. Sangam
E. Other
A. Friends
B. Family
C. Advertisements
A. Quality
B. Price
C. Packagin
g
D. Advertis
ement
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B. Satisfied
C. Neither satisfied nor dissatisfied
D. Dissatisfied
12. Opinion on Quality of heritage Products?
A. Excellent
B. Good
C. Average
D. Poor
A. Televisión
B. Newspapers
C. Social media
D. Celebrity endorsement
A. Milk (FCM)
B. Ice cream
C. Badam milk
D. Lassi
E. Curd
F. Ghee
G. Doodh peda
H. Milk cake
I. Paneer
J. Butter
K. Cold coffee
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REFERENCES
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Mrs. N.Santhamani, D. P. (2021). Consumer Attitude towards Dairy Products – An
Empirical Study in Erode District. International Journal of Engineering and
Management Research.
Mutandwa, D. C. (2007). Measuring the determinants of brand preference in a dairy
product market. African Journal of Business Management, 1 to 9.
Rani. D. N. (2018). Our Heritage Consumer Buying Behaviour towards Dairy
Products: Exploring the Motivation and Trends with Special Reference to Andhra
Pradesh. 1 to 13.
Sunil Kumar, M. S. (2016). The determination of factors influencing consumption
pattern of ghee in Bengaluru market: An application of logistic regression analysis.
Indian J Dairy Sci.
Tversky A and Shafir E (1992), “Choice under Conflict: the Dynamics of Deferred
Decision”, Psychological Science, Vol. 3, No. 6, pp. 358-361.
Underwood R L and Klein N M (2002), “Packaging as Brand Communication:
Effects of Product Pictures on Consumer Responses to the Package and Brand”,
Journal of Marketing Theory and Practice, Vol. 10, No. 4, pp. 58-68.
BOOKS
WEBSITE
https://www.heritagefoods.in/
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