Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA

8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA

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MEASURING IMPACT OF ORGANISED RETAIL

ON FOOD PROCESSING INDUSTRY

A Research Report is submitted to the faculty ofMARKETING RESEARCH, Centre for retail Management, FDDI

In Partial fulfillment Requirement of PGDRM course (2007-09)

SUBMITTED BY: SUBMITTED TO:

(51)Vijay Kumar Mr Shashank Mehra

F.M.R.

CRM, FDDI

FDDI(NOIDA)(center for retail management)

(ministry of commerce, GOVT. OF INDIA)

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THE LETTER OF AUTHORIZATION

As per the integral part of the Marketing Research subject, we have undertakenProjects to conduct a research on measuring the impact of organizeretail on food processing industry.

This research covers major section of ourlearning process and covers all the data and information collectedwhich is authentic & going to be used exclusively for academic purposeonly.

Therefore our respectful faculty of Marketing Research Mr. Shashank

Mehra has authorized this project and hence all the steps undertakenby us were as per his specific guidelines and directions.

Authorized By:

Mr. Shashank Mehra(Faculty of Marketing Research)

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LETTER/MEMO OF TRANSMITTAL

May 01, 2008Mr. Shashank Mehra,Faculty Centre For Retail Management,FDDI, Noida.

Respected Sir,As, per the area and objective of our research and authority received fromyou we have now completed the investigation on various factors effecting

food production and distribution. The result of our research is contained inthis Report entitled Impact Of organized retail on food processingindustry. This report is based on the data collected throughquestionnaires both from retailers & farmers. The methodology adopted isdescribed in the report and the relevant research practices were used in theconduct of the study. We believe that the result to be valid and reliablewithin the constraints as defined in the report. We also believe that as perguidelines and specifications received, you will find the report interestingas well as an addition to the on going research on the concerned fieldwhich will bring new opportunities for future research.

Yours Sincerely,

Vijay kumar

PGDRM,Centre for Retail Management,

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TABLE OF CONTENTS OF RESEARCH REPORT

Section Title Page No.

1. Executive Summery 7

Major findings

Conclusions

Recommendation

2. Introduction 9

Some Facts 10

Background 11

3. Objective of the study 12

4. Research Design 16

5. Methodology 17-19

Population definition 17

The sample plan 17

The sample size 18

Development of the survey questionnaire 18

Collecting the data 18

The response rate 19 Statistical technique used 19

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6. Analysis of result 20-42

A profile of the total sample 20

a) Retailersb) Farmers

Analysis of retailer response 21-31

Analysis of farmer response 32-42

7. Limitations of the study 43

8. Conclusion and recommendations 44

Conclusions 44

Strategic recommendations 45

9. End matter (appendixes) 46-73

Questionnaire 46-51

a) Retailers 46-48b) Farmers 49-51

Frequency tables 52-73

a) Retailers 52-62b) Farmer 63-73

10. Bibliography & references 74

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EXECUTIVE SUMMARY

MAJOR FINDINGS:

As per the area of research undertaken by us i.e.., IMPACT OFORGANISED RETAIL ON FOOD PROCESSING INDUSTRY the majorfindings are also divided into two parts-

In term of retailer.

In term of farmer

Retailer-

Major findings that came into being after conducting a research on retailerare:-

Most of the organized retailers are of the thought that direct tie-up

between farmers and retailers will ultimately going to help them both in abig way.

Above all it will also help in controlling black marketing and inflation.

In terms of strategy for selling most of the retailers feels it is better to go

with a push oriented strategy.

Farmers-

Major findings derived through farmers are:-

Majority of the farmers feels that current supply chain needs to be vastlyimproved and transportation is the one factor that needs maximumattention.

Farmers want minimum number of intermediaries in terms of supply chain.

And they think technology can be very helpful in increasing Agro output. As like the retailers, farmers also feels that direct dealing with Big retailers

could be helpful in reducing price and wastages.

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CONCLUSIONS:

As per the research undertaken & the result derived with in the availableconstraints it can be concluded that:-

Organized retail is acting as a catalyst for food processing industry right

from farmers to processor to retailers.

Tie-ups between farmers and retailers are really going to help them both

term of efficiency and productivity. Supply chain needs to be vastly improved in terms of storage,

transportation and value addition.

RECOMMENDATION:

Govt should play a pro active role in building the supply chain

infrastructures like cold storages and warehouses besides that they shouldmade the policies friendly to both farmers and retailers.

Organized retailers should help farmers and processors or provide them

with the technical know-how of the food processing industry because it is

ultimately going to pay them back in term of getting good and fast food.

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INTRODUCTION

India is worlds second largest food producers and can double the foodsproduction in next 10 years. In India growing retail appetite, the food sectorstands out to be the most promising one. Retail segment has opened upopportunities for processed food products in the country. Indian food industry isfull of small players at each level of food chain. Large supply integrator, chainretailers and cooperatives that have actively driven the development of foodchains in developed economies are missing in India. But now because of Indianeconomy is growing at a stupendous pace. Rising income leading to higherhousehold spending on a variety of goods and services consumers are spending asnever before especially on food. Urbanization and nuclear families too forces

consumer to seek convenience food like ready to cook or ready to eat food. Asdemand for quality food expands, large corporate have began to makeinvestments in retail chains and food processing like Nestle India Ltd., ITC Agroetc. The entry of so many professionally managed business houses will raise thestandard of customer service, improve category management and make sourcingmore efficient. Food supplies to retail chains are required to be processed and

package as also delivered at a reasonable cost investment in food processinghappens once retail chains expands investment will also flow into warehousing toreduce wastages of perishable goods it also helps in developing existing food

products and design processes to attain the best quality and safety.

Indian economy is growing at a rapid rate of 9% with that income level ofcommon man is also rising. Rising income level means more spending power andlifestyle and convenience shopping. This concept is fueling the organized retailindustry, which has a direct connection of dependence on food processingindustry. Food processors give retailers and wholesalers the food and the

beverages product they want, where they want and when they want with the packaging they prefer. Food processing industry has to nurture further bydeveloping a demand oriented approach that is implementing just-in-timeapproach to achieved higher customer satisfaction and reduce wastages andexcess inventories which in turn reduces cost for both commodities in warehousespace, ultimately increasing productivity.

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INDIAS FOOD PRODUCTION: SOME FACTS

India with arable land of 184 million hectares.

India produces annually 90 million tones of milk (highest in the world)

India produces 150 million tones of fruits & vegetables (second largest)

India has 485 million livestock population (largest)

India produces 204 million tones food grain (third largest)

India produces 6.3 million tones fish (3rd largest),

India has 489 million Poultry and produces 45,200 million eggs.

India had the Green Revolution, the White Revolution, and the BlueRevolution,And now the focus is on the Pink Revolution.

The Green Revolution had led to self-sufficiency in food grains, the WhiteRevolution

Saw India occupy the Number One Position in milk production in the world, and theBlue Revolution brought about increase in fish production.

Processed fruits & vegetable:

India is the worlds second largest producer of fruits and vegetables. The hugeproduction base needs to be supported by strong food processing industry. Currently

in India the processing level is estimated to be around 2.20 %.The major items of theIndian fruits and vegetable processing industry are pulps Particularly of tomatoes &mangoes, ready to serve juices, canned fruits, jam, Pickles, squashes, etc.Frozen fruits,dehydrated & freeze dried vegetables, canned mushrooms etc. are also becoming

popular among Indian consumers. The fruit and vegetable processing industry in Indiais highly decentralized with large number of units is in the cottage/home scale

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And small scale sector. According to Ministry of Food Processing the installedcapacity of fruits and Vegetables processing industry has increased from 11.08 lakhtons in January 1993 to 21.18 lakh tons in January 2006. The utilization of fruitsand vegetables for Processing is estimated to be around 2.20 percent of the total

production.

RATIONALE

India can become the food supplier of the world. It has the cultivable land, all theseasons for production of all varieties of fruits and vegetables, an agribusiness systemthat works although it needs to be vastly improved. The single most important problemfacing the Indian agricultural industry is the highly inefficient supply chain. Becauseof lack of cold chain infrastructure and also a food processing industry about 20% ofall foods produced in India (Rs.500b) are wasted. By building an efficient andeffective supply chain using state of the art techniques it is possible to serve the

population with value added food while simultaneously ensuring remunerative pricesto the farmers. The surplus of cereals, fruits, vegetables, milk, fish, meat and poultry

can be processed as value added food products and marketed aggressively both locallyand internationally. Investment in cold chain infrastructure, applied research in postharvest technologies, installation of food processing plants in various sectors anddevelopment of food retailing sector are mandatory for achieving gains in this sector.

Indian food processing industry logging an impressive growth rate of 18% up from 8%in 2004. Food processing industry employs around 15 million people with a turnover of 70 billion dollar per year by 2010 industry is expected to be worth 150 billiondollars. India has a potential to be the food basket of the world it has large rawmaterial base and varied agro climatic conditions. Rising incomes, changing foodhabits leading to tremendous scope in terms of variety of product that can be put onself. So, retail will provide the strong local production and consumption

base.moreover, pre and post harvest technology can help reduce wastages and savecost.

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FDI in retail could fuel Food processing industry. it will provide for much neededtechnical know how to farmers which the established retailers across the world will

bring along with them when they open shops in the country.foriegn retail giants arewilling to buy 30 billion dollars worth of processed food from the country. Accordingto study country could attract 1.5 to 2 lakh crore in 10 years time if it opens door toFDI in retail.

OBJECTIVES

Determining the various issues that are influencing food production anddistribution.

Measuring current supply chain and impact of organized retail on foodprocessing industry.

Identify the key factors that farmers and food processors should reap throughorganized retailers.

Measuring the role of govt. in enhancing investment in food processingsector.

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PROBLEMS IN INDIAN FOOD PROCESSING SECTOR:

1 Indian production and consumption centers are widely dispersed.As a result actual cost of transportation becomes much higher due to longsupply chain with inadequate cold storage facilities for perishable products.

2 Indias supply chain for perishable is characterized by extensive wastages andpoor handling. The wastages occurs because of multiple point of manualhandling, inadequate packaging and temperature control and lack of cold

storage network both in term of storage, processing and transportation.

3 Production of raw material being relatively unorganized, seasonal and spatiallydisbursed.

4 The supply chain is long because of number of intermediaries due to whichfarmer will not be able to get due for their produce

.

5 Value additions in terms of sorting, grading, storage and bulk handlingfacilities are very less due to lack of capital and experience in food

retailing.

6 The reason for such a distress selling are(1)lack of direct linkages withmarket(2)lack of processing facilities.

7 Ineffective marketing channels.

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WHY INVEST IN INDIAN FOOD PROCESSING SECTOR?

Due to its diverse agro-climatic conditions, it has a wide-ranging and largeRaw material base suitable for food processing industries. Presently a verySmall percentages of these are processed into value added products.

It is one of the biggest emerging markets, with over 900 million populationsAnd a 250 million strong middle class.

Rapid urbanization, increased literacy and rising per capita income, have allCaused rapid growth and changes in demand patterns, leading to tremendousnew opportunities for exploiting the large latent market. An average IndianSpends about 50% of household expenditure on food items.

Demand for processed/convenience food is constantly on the rise.

India's comparatively cheaper workforce can be effectively utilized to setupLarge low cost production bases for domestic and export markets.

Liberalized overall policy regime, with specific incentives for high priority food

Processing sector. No industry license is required for food processing industries.

Very good investment opportunities exist in many areas of food processingIndustries, the important ones being: fruit & vegetable processing, meat, fish& poultry processing, packaged, convenience food and drinks.

Exclusive Agri Export Zones set up for end to end development for export ofSpecific products from geographically contiguous areas

Setting up of food parks to enable food and beverage units to use capitalIntensive facilities, such as cold storage, warehouse, quality control labs,Effluent treatment plant etc

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Agro based 100% Export Oriented Units allowed sales up to 50% in Domesticmarket

Presence of virtually all major multi-national companies like Coca-Cola,Pepsi,Britannia, DANONE, Nestle, Cadbury, Lever's Kelloggs, Heinz,International Best Foods Walls, Perfetti, Van Melle, etcIn a developing country like India a large chunk of consumer expenditure is on

basic necessities, especially food related items. A recent study by KSA TechnopakIndia Pvt. Ltd. has revealed that food and beverages still gets the major chunk of

the total consumer spending in India followed by clothing and footwear.

Sector wise Indian Consumer Expenditure:

S.No. Sector Share of Consumer spending in India:

1 Food and beverages 52 percent2 Cloth & footwear 11 percent3 Entertainment 3 percent4 Consumer durables and furniture 7 percent5 Health care 2 percent6 Housing 9 percent7 Others 16 percent

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FOREIGN DIRECT INVESTMENT IN FOOD PROCESSINGSECTOR

The Indian food processing market is one of the largest in terms of production,consumption, and export and import prospects. Since, India is one of the majorfood producers worldwide, with new reforms ruling the roost, it encouragescommercialization. The country's food processing market is opening up to a widerange of investors across the globe. In fact, in the last decade, India moved from anera of scarcity to surplus, in the area of food production. Consequently, analysts areof the opinion that the Food Processing Industry in India is on an assured track ofgrowth and profitability over the next five years. It is also estimated that food-

processing market in India will attract a phenomenal investment, in the form ofcapital, human, technological, and financial, of over US$32.1 million by 2010.

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RESEARCH DESIGN

The research design followed during the course of research work was-

Exploratory research:

To study and gain the knowledge about the current supply chain in the food

processing industry and the shortcomings which it is facing.

We have done pilot study on retailers and their processors. Our focus group includ

Farmers, Retailers and Processors.

To study problem faced by the retailers and the farmers during supply chain we hav

conducted the focus group interview.

Descriptive Research:

After going through the EXPLORATORY REASEARCH, the research processwas advanced with the help of DESCRIPTIVE RESEARCH, which wasfollowed in the following manner:-

Designing and developing if questionnaires for both the retailers and

farmers.

Collection of data and information with the help of these questionnaires.

Cross sectional study been done to explore the impact of organized retail on

foodProcessing industry.

Evaluation and analysis of data as per the objectives of the research.

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Final conclusion & recommendation as per the analysis

METHODOLOGY

POPULATION DEFINITION

The population or the parameter considered for the research purpose covers:-

Farmers both big and small dealing in different types of crops.

Retailers especially grocery stores which can be called as organized

retailers.

Some of the experts of the specialized areas have also been interviewed to

know the expert opinion.

SAMPLE PLAN

The selection of the samples is done through following sampling technique:

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SAMPLE PLAN

PROBABILITY SAMPLING NON-PROBABILITY

SAMPLING


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SAMPLE SIZE:

Retailers- 15

Farmers- 20

SAMPLE LOCATION:

Selected retail grocery stores in Delhi & NCR region.

Farmers interviewed are from Surajpur, Noida & Kasna.

DEVELOPMENT OF SURVEY QUESTINNAIRE:

The development of survey questionnaire took place in two phases:-

Initial phase At this phase the questionnaire were designed using various toolsand techniques as per the research objectives and gone through the pilot testing.

Final phase At this phase the final questionnaire were designed after makingnecessary corrections in previous questionnaire introduced through pilot testing.

COLLECTING THE DATA:

Collection of data from retailers and farmers was done with the help ofQUESTIONNAIRE.

RESPONSE RATE:

As per the number of retailers and farmers contacted the responserates were:-

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SIMPLE

RANDOMSAMPLING

JUDGMENT

SAMPLING


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Retailers:

No of retailers contacted Response No Response18 15 03

RESPONSE RATE: 83.33%

Farmers:

No of farmers contacted Response No Response24 18 06

RESPONSE RATE: 75%

STATISTICAL TECHNIQUES USED:

Statistical tools used are:

Mean

Mode

Standard Deviation

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ANALYSIS OF RESULT

Profiles of samples

Retailers -:

The retailers selected by us as a sample were among the major retailers of India,dealing either in apparel or in grocery. These retailers belong to major

business units of India, which are -:

Future group Reliance group

Subhiksha

Birlas group

etc

Farmers -:

The farmers selected by us as a sample from from different locations of DELHI&NCR. They were operating on both low and high level of production.

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1. From where are you procuring your inventories ?

13%

27%

7%

46%

7%

farmers

vendorsagents

warehouse

noresponse

To determine the procurement source for retailer

highest response rate is warehouse

second highest is vendors

overall results reflect 50% of the retailer are procuring from warehouses

Nominal scaling technique is used

Mode is used as a statistical tool(4)

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2. Do you think Tie-ups between farmers and retailers will help in controllingblack marketing and inflation?

80%

20%

0%0%0%

stronglyagree

somewhatagree

somewhatdisagree

stronglydisagree

noresponse

To know the retailers opinion about tie-ups between them & farmers

Single item balanced scaling technique is used

Most of the retailers are agreed with the advantages of tie-ups

Response rate is 100%

Mode is used as a statistical tool(1)

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3. Do you think by helping the farmers, Retailers are ultimately helpingthemselves?

73%

27%

0%0%0%

somewhatagree

stronglyagree

somewhatdisagree

stronglydisagree

noresponse

To determine how much are retailers ready to help farmers in term of

production and distribution.

Most of the retailers are agreed with the statement asked to them to give

their opinion


Single item balanced scaling technique is used Mode is used as a statistical tool

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5. Do you think In-house processing facility will improve product line andproductivity for retailers?

33%

54%

0%

0%

13%

stronglyagree

somewhatagree

somewhatdisagree

stronglydisagree

noresponse

To know the retailers opinion about In-house processing facility


Majority of the feels it could improve product line & productivity


Mode = 2

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6. Which market do you think is having maximum opportunities?

0%

87%

13%

rural

urban

semiurban

To determine which market they would see has maximum opportunities

87% of the retailers feels urban middle class market has the maximum

opportunities to explore

Comparative scaling(constant sum) technique is used

High response in favor of urban market 87%

Mode = 2

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7. Where do you think the maximum investment needs to be done?

40%

53%

0%7% 0%

storage

transportation

processing

coldstorage

noresponse

To know which factor of supply chain they think needs maximum

investment

Nominal scaling technique is used

Highest response rate for the transportation (53%)

Second highest is for cold storage (40%)

Outcome is that the transportation needs more attention than other factors

Mode = 2

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8. Do you think growing need of quality food will ultimately push foodprocessing sector?

60%

40%

0%0%0%

stronglyagree

somewhatagreesomewhatdisagree

stronglydisagree

noresponse

To take the retailers opinion about relationship between quality food and

food processing sector


Majority of the retailer(60%) feels demand of quality food is certainly going

to push food processing sector

100% response rate is received

Mode = 1

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9. Which strategy do you think is best for retailers?

0

2

4

6

8

10

12

14

pushoriented pulloriented

no

ofre

atilers

Series1

To know which strategy they are going with i.e. demand oriented or

marketing oriented


Most of the retailers are going up with push oriented strategy i.e. pushing the

customer to buy the product

Mode = 1

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10. Do you think packaged food industry has huge scope of improvement both interm of product and market?

53%

47%

0%0%0%

stronglyagree

somewhatagree

somewhatdisagree

stronglydisagree

noresponse

To determine what the retailers think about food processing industry and its

market


100% response rate

Almost all of the retailers feels food processing industry needs lots ofimprovement

Mode = 1

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ANALYSIS OF FARMERS RESPONSE

6%6%

6%

6%

6%

6%

6%

6%6%6%

6%

6%

6%

6%

6%

6%

6%6%

far1

far2

far3

far4

far5far6

far7

far8

far9

far10

far11

far12

far13

far14

far15

far16

far17

far18

Response received from 18 farmers

Sample collected form NCR Non probability judgement sampling is used

No response from 6 farmers


Full contribution and equal participation by each farmer@6%

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1. Which according to you is the most critical factor affecting post harvestingprocess?

22%

22%45%

11%0%

cold storage

warehouse

transportation

valuaddition

no respose

To determine the most important factor after harvesting or production


Majority of the farmers takes transportation as the critical factor

High response is 45%(transportation) & lowest is value 11%(addition) Nominal scaling technique is used

Mode = 3

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2. Do you think current supply chain needs to be vastly improved?

67%

33%

0%0%0%

storngly agree

somewhat agreesomewhat disagree

stornglydisagree

no response

To take the farmers opinion on current supply chain

100% response rate is achieved


Majority of the farmers are in the favor of improvement of current supply

chain

Mode = 1

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3. Do you think direct dealing between farmers and retailers will reduce price andwastages?

55%

28%

17%

0%

0%

strongly agree

somewhat agree

somewhat disagree

strongly disagree

no reponse

To know what the farmers think about their dealing with retailers

100% Response rate


Around 50% are in the strong favor of direct dealing with retailers

11% of the farmer feels otherwise

Mode = 1

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4. Do you satisfy with the efforts being made by Govt in improving foodproduction and distribution?

49%

28%

0%

17%

6%

don't like

somewhat like

very much like

excellent

no response

To know whether they like the efforts being made from the side of the Govt


Half of the respondent do not satisfy the efforts by govt

17% said govt is doing excellent

6% have no response

Mode = 1

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5. Do you think technology can be helpful in increasing agro output?

72%

28%

0%0%0%

strongly agree

somewhat agree

somewhat disagree

strongly disagree

no reponse

To know the farmers opinion about use of the technology in agriculture



Most of the farmers are of the view that technology is certainly a helpfulfactor in agro processing sector

Mode = 1

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6. Do you have sustainable or continuous demand for your product?

4 4

10

0

2

4

6

8

10

12

yes no somewhat

noo

fretalers

Series1

Series2

To know the demand pattern for the product of farmers Nominal scaling technique is used

61% of the farmers said they have continuous demand for their product

22% have no response

Mode = 2

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7. Do you think their should be a integrated cold storage and processing facility forfarmers and retailers

77%

17%

0%

0%

6%

strongly agree

somewhat agree

somewhat disagree

strongly disagree

no reponse

to know the farmers opinion about integrated cold storage and processing

facility

100% response rate

Most of the farmers were in favor of integrated food processing facilities


Mode = 1

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8. Do you think less number of intermediaries will help both farmers andretailers?

83%

17%

0%0%0%

strongly agree

somewhat agree

somewhat disagree

strongly disagree

no reponse

To know the farmers opinion about intermediaries In supply chain Response rate is 100%


83% of the farmers feels more intermediaries

will reduce price for both them and retailers

mode = 1

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9. Which strategy do you prefer while production?

12

6

0

2

4

6

8

10

12

14

PUSH(produce & sell() PULL(food on demand)

NOO

FRETAILERS

Series1

To know whether farmers are going with pull or push oriented strategy


100% response rate

Most of the farmers(66%) were going with push oriented strategy

Mode = 2

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10.Do you think big retailers will provide farmers technical know-how ofproduction and distribution?

59%

18%

18%

5% 0%

strongly agree

somewhat agree

somewhat agree

somewhat disagree

strongly disagree

To take their view on help that retailers can provide them

100% response rate is achieved


Around 60% of the farmers were strongly agreed to the statement Mode = 1

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LIMITATION OF THE STUDY

As per the area of research undertaken the collection of the date and theinformation is done with in the prescribed set of rules and direction & as per theobjectives of the research project, but still there are some aspects which were not

possible to be considered or followed in order to make this research flawless, andtherefore these aspects had turned into limitations of the study which are as

follows-

Limited time period to cover the entire concept and take feedback from larger

sample in order to get more accurate result.

Non-cooperation of the retailers & farmers in sharing information about their

procurement, processing and production process.

The data collected is not representing all the farmers operating outside the NCRRegion.

The research paper and the case study analyzed were not having sufficient

information about actual impact of organized retail on food industry although itis improving supply chain.

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CONCLUSIONS AND RECOMMENDATION

CONCLUSIONS

The overall conclusions derived after conducting the research on MEASURINGIMPACTOF ORGANISED RETAIL ON FOOD PROCESSING INDUSTRYare-

Both Retailers and Farmers feels they are supplement to each other and can

achieve lots of good things if they tie-up hands with each other.

Both Retailers and Farmers said that current supply chain of food product needs

to be vastly improved especially in terms oftransportation & warehousing.

Organized Retail can definitely boost the food processing industry but it would

require lots of efforts from the side of Govt also.

Both Retailers and Farmers are going with push oriented strategy i.e. pushing

the product into the market

Both Retailer and Farmers wants direct dealing with each other with less no of

intermediaries to reduce price and wastages.

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RECOMMENDATIONS

As per the major findings & conclusions derived through this researchrecommendation regarding strategies, planning & major aspects of supply chaincan be draws as-:

Retailers should extend their helping hand first to the Farmer because they are

the ones who provide the market to the Farmer and can guide the farmers toproduce right product at the right time.

Retailers should go for contract farming technique to provide Farmers with

continuous demand for their product and to avoid wastages & reduce price for

both retailer and consumer.

Govt should comes out with the helping hands for both farmers and retailers as

organized retail is still at the adolescent stage and it has lots of potential toimprove.

In term of strategy Retailers and Farmers should go for demand oriented

strategy to have maximum consumption of their produce.

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Footwear Design & Development Institute

IMPACT OF ORGANIZED RETAIL ON FOOD PROCESSING INDUSTRY

QUESTIONNAIRE

NAME: AGE: SEX:

CONTACT NO: LOCATION:

1. Which according to you is the most critical factor affecting post harvesting process?

Cold storage Ware house Transportation Value addition

2. Current supply chain needs to be vastly improved.

Stronglyagree

Somewhatagree

Somewhatdisagree

Stronglydisagree

3. Direct dealing between farmers and retailers will reduce price and wastages.

Stronglyagree

Somewhatagree

Somewhatdisagree

Stronglydisagree

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4. Do you like the efforts being made by govt.in improving food production anddistribution?

Dont like Somewhat like Very much like excellent


Stronglyagree

Somewhatagree

Somewhatdisagree

Stronglydisagree

6. Do you having a sustainable or continuous demand for your product?

Stronglyagree

Somewhatagree

Somewhatdisagree

Stronglydisagree

7. They should be a integrated cold storages and processing facility for farmers andprocessors.

Stronglyagree

Somewhatagree

Somewhatdisagree

Stronglydisagree

8. Less no. of intermediaries will help both farmers and retailers.

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Stronglyagree

Somewhatagree

Somewhatdisagree

Stronglydisagree

9. Which strategy do you prefer while production?a) Food on demand (pull) b) Produce & sell (push)

10. Big retailers will provide farmers technical know-how of production and distribution.

Stronglyagree Somewhatagree Somewhatdisagree Stronglydisagree

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Footwear Design & Development Institute

IMPACT OF ORGANIZED RETAIL ON FOOD PROCESSING INDUSTRY

QUESTIONNAIRE

NAME: AGE: SEX:

CONTACT NO: LOCATION:

11. From where are you procuring your inventories?

Farmers Vendors Agents Ware houses

12. Tie-ups between farmers and retailers will help in controlling black marketing andinflation.

Stronglyagree

Somewhatagree

Somewhatdisagree

Stronglydisagree

13. By helping the farmers, retailers are ultimately helping themselves.

Stronglyagree

Somewhatagree

Somewhatdisagree

Stronglydisagree

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14. Decentralized buying is better than centralized buying.

Stronglyagree

Somewhatagree

Somewhatdisagree

Stronglydisagree

15. In house processing facility will improve product line and productivity for retailers.

Stronglyagree

Somewhatagree

Somewhatdisagree

Stronglydisagree

16. Which market do you think is having maximum opportunities?a) Rural b) Urban c) Semi urban

17. The factors where the maximum investment need to be done are :

Storage Transportation Processing Cold storage

18. Growing need of quality food will ultimately push food processing sector.

Stronglyagree

Somewhatagree

Somewhatdisagree

Stronglydisagree

19. Which strategy do you think is best for retailers?a) Push oriented b) Pull oriented

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20. Packaged food industry has a huge scope of improvement both in term of product andmarket.

Stronglyagree

Somewhatagree

Somewhatdisagree

Stronglydisagree

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FREQUENCIES OF RETAILERS QUESTIONNAIRE

Retailers

ETAILERS

Frequency Percent

ValidPercent

CumulativePercent

Valid

BIG BAZAR 1 5.6 6.7 6.7

SUBHIKSHA 1 5.6 6.7 13.3

SALASAR 1 5.6 6.7 20.0

REL FRESH 1 5.6 6.7 26.7

6TEN 1 5.6 6.7 33.3

MORE 1 5.6 6.7 40.0

SPENCER'S 1 5.6 6.7 46.7

SABKA BAZAR 1 5.6 6.7 53.3

BIG APPLE 1 5.6 6.7 60.0

MOTHERDAIRY

1 5.6 6.7 66.7

SAFAL 1 5.6 6.7 73.3

VISHAL 1 5.6 6.7 80.0

DOLLARSTORE

1 5.6 6.7 86.7

GUPTA 1 5.6 6.7 93.3

MITTAL 1 5.6 6.7 100.0

Total15 83.3 100.0Missing System 3 16.7

Total 18 100.0

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1. Do you think Tie-ups between farmers and retailers will help in controlling

black marketing and inflation?

Frequencies

N

Valid 15

Missing 0

Mean 1.2000Std. Error of Mean .10690

Mode 1.00

Std. Deviation .41404

Frequency Percent

ValidPercent

CumulativePercent

Valid

Strongly agree 12 80.0 80.0 80.0

somewhat agree 3 20.0 20.0 100.0

Total 15 100.0 100.0

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Frequencies

Frequency Percent

ValidPercent

CumulativePercent

Valid

missing 1 6.7 6.7 6.7farmers 3 20.0 20.0 26.7

vendors 4 26.7 26.7 53.3

agents 1 6.7 6.7 60.0

4.00 6 40.0 40.0 100.0

Total 15 100.0 100.0

3. Do you think by helping the farmers retailers are ultimately helping themselves?

Statistics

Valid 15

Missing 0

Mean 1.2667

Std. Error of Mean .11819

Mode 1.00


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Frequencies

4. Do you think decentralized buying is better than centralized buying?

Statistics

N

Valid 15

Missing 0

Mean 2.6000


Mode 2.00(a)

Std. Deviation 1.12122

Frequency Percent

ValidPercent

CumulativePercent

Valid

strongly agree 11 73.3 73.3 73.3


Total 15 100.0 100.0

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Frequency

Frequency Percent ValidPercent CumulativePercent

Valid



somewhat disagree 4 26.7 26.7 73.3

strongly disagree 4 26.7 26.7 100.0

Total 15 100.0 100.0

5. Do you think in-house processing facility will improve product line and

productivity for retailers?

Statistics

N

Valid 15

Missing 0

Mean 1.4000Std. Error of Mean .19024

Mode 2.00


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Frequency


Valid

Missing 2 13.3 13.3 13.3



Total 15 100.0 100.0

6. Which market do you think is having maximum opportunities?

Statistics

N

Valid 15

Missing 0

Mean 2.1333


Mode 2.00


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Frequency

Frequency Percent

ValidPercent

CumulativePercent

Valid

Urban 13 86.7 86.7 86.7semi urban 2 13.3 13.3 100.0

Total 15 100.0 100.0

7. In which sector do you think maximum investment needs to be done?

Statistics

N

Valid 15

Missing0

Mean 1.7333

Std. Error of Mean .20625Mode 2.00


Frequency

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Frequency Percent

ValidPercent

CumulativePercent

Valid

storage 6 40.0 40.0 40.0

transportation 8 53.3 53.3 93.3

cold storage 1 6.7 6.7 100.0Total 15 100.0 100.0

8. Do you think growing needs of quality food will ultimately push foodprocessing sector?

Statistics

N

Valid 15

Missing 0

Mean 1.4000


Mode 1.00Std. Deviation .50709

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Frequency

Frequency Percent

ValidPercent

CumulativePercent

Valid

strongly agree 9 60.0 60.0 60.0somewhat agree 6 40.0 40.0 100.0

Total 15 100.0 100.0

9. Which strategy do you think is best for retailers?

Statistics

N

Valid 15

Missing 0

Mean 1.1333


Mode 1.00


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Frequency

Frequency Percent

ValidPercent

CumulativePercent

Valid

push 13 86.7 86.7 86.7pull 2 13.3 13.3 100.0

Total 15 100.0 100.0

10. Dont you think packaged food industry has a huge scope of improvement bothin term of product and market?

Statistics

N

Valid 15

Missing 0

Mean 1.4667


Mode 1.00


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Frequency

Frequency Percent

ValidPercent

CumulativePercent

Valid



Total 15 100.0 100.0

FREQUENCIES OF FARMERS QUESTIONNAIRE

Frequency of Farmers

Frequency Percent Valid PercentCumulativePercent

Valid

farmer1 1 5.6 5.6 5.6

farmer2 1 5.6 5.6 11.1

farmer3 1 5.6 5.6 16.7farmer4 1 5.6 5.6 22.2

farmer5 1 5.6 5.6 27.8

farmer6 1 5.6 5.6 33.3

farmer7 1 5.6 5.6 38.9

farmer8 1 5.6 5.6 44.4

farmer9 1 5.6 5.6 50.0

farmer10 1 5.6 5.6 55.6

farmer11 1 5.6 5.6 61.1

farmer12 1 5.6 5.6 66.7

farmer13 1 5.6 5.6 72.2

farmer14 1 5.6 5.6 77.8

farmer15 1 5.6 5.6 83.3

farmer16 1 5.6 5.6 88.9

farmer17 1 5.6 5.6 94.4

farmer18 1 5.6 5.6 100.0

Total 18 100.0 100.0

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1. Which according to you is the most critical factor affecting post harvestingprocess?

Statistics

N

Valid 18

Missing 0

Mean 2.4444


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Mode 3.00


Frequency

Frequency Percent

ValidPercent

CumulativePercent

Valid

cold storage 4 22.2 22.2 22.2

warehouse 4 22.2 22.2 44.4

transportation 8 44.4 44.4 88.9

valueaddition

2 11.1 11.1 100.0

Total18 100.0 100.0

2 Do you think current supply chain needs to be vastly improved?

Statistics

current supply chain needs to be vastly improved

N

Valid 18

Missing 0

Mean 1.3333


Mode 1.00


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Frequency

Frequency Percent Valid PercentCumulativePercent

Valid



Total 18 100.0 100.0

3 Dont you think direct dealing between farmers and retailers will reduce price andwastages?

Statistics

N

Valid 18

Missing0Mean 1.6111


Mode 1.00


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Frequency


Valid



somewhat disagree 3 16.7 16.7 100.0

Total 18 100.0 100.0

4 Do you like the efforts being made by govt in improving food production anddistribution?

Statistics

N

Valid 18

Missing 0

Mean 1.7222


Mode 1.00

Std. Deviation 1.17851

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Frequency

Frequency Percent

ValidPercent

CumulativePercent

Valid

missing 1 5.6 5.6 5.6

don't like 9 50.0 50.0 55.6

somewhat like 5 27.8 27.8 83.3

excellent 3 16.7 16.7 100.0

Total 18 100.0 100.0


Statistics

N

Valid 18Missing

0

Mean 1.2778


Mode 1.00


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Frequency

Frequenc

y Percent

Valid

Percent

Cumulative

PercentValid



Total 18 100.0 100.0

6 Do you have a sustainable or continuous demand for your product?

Statistics

N

Valid 18

Missing 0

Mean 2.1111


Mode 2.00


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Frequency

Frequency Percent

ValidPercent

CumulativePercent

Valid

missing 1 5.6 5.6 5.6

yes 2 11.1 11.1 16.7

NO 10 55.6 55.6 72.2

Somewhat 4 22.2 22.2 94.4

4.00 1 5.6 5.6 100.0

Total 18 100.0 100.0

7. Dont you think there should be integrated cold storage and processing facilityfor farmers and retailers?

Statistics

N

Valid 18

Missing 0

Mean 1.1111


Mode 1.00


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71/75

Frequency

Frequency Percent

ValidPercent

CumulativePercent

Valid

Missing 1 5.6 5.6 5.6


Somewhatagree

3 16.7 16.7 100.0

Total 18 100.0 100.0

8. Do you think less number of intermediaries will help both farmers and retailers?

Statistics

N

Valid 18

Missing 0

Mean 1.1667


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72/75

Mode 1.00


Frequency

Frequency Percent

ValidPercent

CumulativePercent

Valid



Total 18 100.0 100.0

9. Which strategy do you prefer while production?

Statistics

N

Valid 18

Missing 0

Mean 1.6111


Mode 2.00


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Frequency

Frequency Percent

ValidPercent

CumulativePercent

Valid

Missing 1 5.6 5.6 5.6

PULL(food ondemand)

5 27.8 27.8 33.3

PUSH(produce & sell) 12 66.7 66.7 100.0

Total 18 100.0 100.0

10. Dont you think big retailers will provide technical know-how of productionand distribution to farmers?

Statistics

N

Valid 18

Missing 0

Mean 1.3889


Mode 1.00

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Frequency

Frequency Percent

ValidPercent

CumulativePercent

Valid



stronglydisagree

1 5.6 5.6 100.0

Total 18 100.0 100.0

BIBLIOGRAPHY & REFERENCES

Report of the APO multi country study mission on rural based food processinindustry heldIn Tokyo, Japan

Asian Productivity Organization 2004

Web site of Ministry OF Food Processing Govt of India.

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News paper- Economic Times, HT

Magazines- Retail images.

Book Marketing research by Naresh Malhotra, Levys-Weitz.

Research papers on Challenges of Retail & Food Retailing

Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA

Documents

Transcript of Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA