Use Of Social Media For the Brand Awareness of Food Products, Thesis of Marketing

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A STUDY ON USE OF SOCIAL MEDIA FOR THE

BRAND AWARENESS OF SWASTIK FOOD

PRODUCTS

1. INTRODUCTION

Social Media, today, is among the, best opportunities available‟ to a brand for connecting with prospective consumers. Social media is the medium to socialize. It has a strong impact on the purchasing process of a consumer. The traditional buying process of a consumer includes search detail information of a brand/ product, and after getting detailed information they consider many brands and then from those brands they evaluate a few brands and in the end, the final decisions are taken according to his/her needs. Nowadays, due to advancement of technology, social media is considered as the right way to get right information at the right time by the consumer. Social media give consumers high control as it enables the buyers to gather much more information, watch reviews, and make comparison of different products, while sitting at home. These techniques have proved to be quite cost- effective and have attracted many customers. In today’s world internet is considered as the best way to spread messages. Therefore many companies have gained a lot from digital marketing and fans through social networking. Social Networking Websites including Facebook and Twitter which are now being used by various multinational companies in order to convey their message to the customers. Social Media has become a major factor in influencing various aspects of consumer behaviour which leads to brand commitment. According to Barnes, N. G., & Mattson (2008) social media takes less time to reach out to customers and has endless possibilities. It helps to grab attention of a customer by writing a blog or leaving a comment on someone else’s blog. One can reach out to potential clients in a cost effective manner by advertising on social websites, especially if one is a small business owner who doesn’t have the budget for television and advertising campaigns. In the 21st century, brands need to have a social story to leverage the emotional and persuasive elements that make offerings successful. There are three strategic roles that help to build the brand. Marketers must use social media to serve their brand building objectives. It can help the brand to:

During wartime, the food and beverage industry shifted, as food is often a precious commodity. Prices were determined by availability and regulation. Most countries involved in World War II rationed food and regulated prices in order to stabilize the economy. This increased innovation in the food processing segment with the inventions of food colouring, juice concentrates, artificial sweeteners, and more advanced preservatives, such as sodium benzoate. These innovations led to the current food processing market in place today with convenience foods, such as frozen TV dinners and instant meals, prepared snacks, and other instantly available The food distribution segment of this industry is fairly new. Prior to the industrial revolution, consumers typically ate what foods were available to them in their regional market. Foods were processed from these markets and used for journeys out of them. With the increased transportation of the industrial revolution, such as railroads and barges, as well as the concurrent rise in technology such as canning, it became feasible to transport food from one regional market for sale in another. Today, the industry segment has evolved even further due to increased transportation technology such as airplanes. COMPANY PROFILE SWASTICK FOODS was established in 1984. A tradition that began in 1924 has transformed into an illustrious venture today. A business that brings quality and authenticity in cuisine. An enterprise that blends entrepreneurship with originality. This is the rich legacy of SWASTICK FOODS. Our Heritage: At SWASTICK FOODS we are proud of our rich heritage. Our Vision: To be an indispensible companion in every kitchen to help create authentic and delicious Indian food.

Our Values: Constantly focus on building expertise, thereby enhancing SWASTICK FOODS's potential for quantum growth. Passion:  Create energy and excitement at work  Motivate by example  Conviction and courage to lead Innovation: Constantly look for new and better ways to delight consumers Inclusiveness:  Ensure individuals' dignity in all interactions by addressing the issue and not the person  Encourage ideas from people at all levels Openness:  Give, receive and seek feedback without bias / prejudice (regardless of source).

 Rice Meals - Bisibele Bhath, Rajma Chawal, Diet Delite, Rasam Rice, Jeera Rice, Sambar Rice, Lemon Rice, Tamarind Rice, Masala Rice, Tomato Rice.  Spice Powders - Turmeric Chilli, Coriander Jeera, Black Pepper.  Instant Sweet Mixes - Gulab Jamun, Badam Burfi, Badam Feast, Chocolate Burfi, Kaju Burfi, Vanilla Burfi, Vermicelli Payasam.

 Masala Powders - Instant Sambar Mix Sambar Powder, Instant Rasam , Mix Rasam Powder, Madras Sambar Powder, Madras Rasam Powder, Pav Bhaji, Potato Sagu, Pulao Puliogare, Chutney Powder, Bisibele Bhath, Vangibhath. PRODUCT QUALITY: Impeccable qualities the focus on TQM(Total Quality Management) before they finish the quality along advertisement which Swastik food gives as a competitive edge design innovative of packets day by day. It is popular due to its colourful packets which is unbeatable by other brands. INFRASTRUCTURE AND FACILITIES Infrastructure : Our varied range of products is processed in a cutting edged manufacturing unit that is equipped with latest technology. The unit has very high installed capacity with state of the art machinery that empowers it to meet bulk order at given time. The unit is marked by high efficiency and no wastage that further enhances our quality. Apart from the manufacturing unit, our infrastructure also has Quality analysis unit, a R&D Center and Warehouse and Packaging unit. All the units are actively occupied in performing their respective responsibilities under the able guidance of committed professionals who leverage their expertise to the fullest extent to justify the organization's objective as a responsible manufacturer.

STRENGTH

 It has a wide product range of high quality authentic & ethnic Indian processed foods i.e. Pickles, Spice pastes, Instant Mixes, Ketchup & Sauces.  The Company has well established its brand name "SWASTIK" in mostly all the major cities in India.  Company has products for various market segments including domestic markets, for institutions and for exports.

WEAKNESS

 Much of its sales depend upon a few well-recognized brands. This makes the company vulnerable to any sudden changes in consumer behavior.  Export are minimal and too much focus on domestic market, which is witnessing increasing competition.  The company is heavily dependent upon advertising to shape consumer opinion and drive traditional sales. This can lead to high marketing costs with a questionable return on investment. OPPORTUNITIES  Growth in online retail could open up new distribution channels such as Amazon Prime that can bypass traditional retailers.  The company’s venture into Frozen food market presents a big opportunity.  Swastik food products has the ability to grow into a massive project with various food processing facilities

THREAT

 Constant increase in costs in terms of raw material inputs, services, power and fuel. The huge surge in costs continues to be a point of concern for the Company.  There is pressure from large retailers such as Walmart to cut prices. FUTURE GROWTH AND PROSPECTS

India saw quick economic growth powered by economic transformations during the phase of 2004 to 2007. FDI inflow increased and GDP growth was at 10 per cent during the period. The global economic downturn seen in 2008 had a deep impact on the economy with industrial output slowing down and inflation increasing by two percentage points over the previous year to 8.3 per cent. However, real GDP growth still remained as strong as 7. percent. With India’s huge population base, steady macroeconomic environment and a rise in middle class population, processed foods has been one of the fastest growing segments in the Indian market. Rapid lifestyle change, especially in the urban areas, has caused a histrionic rise in the demand for packaged, processed, ready-to-eat foods and food products. With the entry of food multinational companies and the propagation of Quick Service and fast food Restaurants (QSR) outlets have indeed further added to the boost of the packaged food industry. The proliferation of modern day retail business types and the rapid increase of hypermarkets/ supermarkets, fast food outlets and shopping malls combined with the promising industry trends are adding to the fundamental shifts in the Indian grocery and food industry. The food processing and production industry in India is considered to be one of the largest in terms of growth, production, export and consumption prospects. Significant sub sectors in the food processing industry are, fish processing, processing of fruit and vegetable, milk processing, packaged/convenience foods, meat and poultry processing, grain processing, soft drinks, and alcoholic beverages.(Sajani Mrinalini Dutta, Rohit Chadha, Rohit Bhatiani (2008). In the past few decades, Indian companies have taken big and vital steps in producing milk, food grains, vegetables and fruits. The production of raw food materials is worth over Rs 60,000 crore in India. After the calculation of primary, secondary and tertiary processes, total sum of the food industry is estimated as Rs.1, 10,000 Crores. This huge cost overrun replicates the alluring opportunities in the food processing industry, offered to the Indian economy to the whole and to the entrepreneurs in individual. The attractive marketing opportunities lie in advancing the grains and commodities to branded and packaged products

Balance Sheet( in crore) 2016-17 2015-16 2014-15 2013-14 2012- ASSETS Cash and Cash Equivalents 6.3 7.3 6.2 4.5 9. Fixed Assets (Net) 65.2 61.5 61 64.2 44. Net Current Assets 47.7 24 9.6 -2.3 12. LIABILITIES Share Capital Equity Shares 2.6 2.6 2.6 2.6 2. Redeemable Preference Shares 0.6 0.6 0.6 0.6 0. Reserves and Surplus Reserve for Premium of Preference Share Capital 11.6 11.6 11.6 11.6 11. Others 71.6 46.1 30 19.7 15. Long Term Borrowings 36.04 19.74 21.23 23.9 29.

2. CONCEPTUAL BACKGROUND AND LITERATURE REVIEW

CONCEPTUAL BACKGROUND

Social media is a phenomenon that has drawn a lot of attention both to companies and individuals interacting on the networking landscape. However, when it comes to giving a clear definition of what social media really is, the understanding of the term is very minimal. Managers and academic researchers seem to differ on how social media differ from interchangeable related concept web 2.0 and User Generated Content (Kaplan and Haenlein: 2009). Looking way back into the history of the internet where social media might have evolved from, a clear understanding of related concepts can be derived. In 1979, Truscott and Ellis from Duke University created the Usenet, a worldwide discussion system that allowed users to post public messages. Usenet is a hybrid between email and web forums and the discussions therein are threaded with modern news reader software (http://nzblord.com/usenet/).User Generated Content entered usage in 2005; it covers a variety of media information available. It includes all digital media technologies such as, digital video, blogging, podcasting, forums, review-sites, social networking, mobile phone photography and wikis. Hence User Generated Content is a sum of all ways in which people make use of social media (Kaplan and Haenlein 2009). LITERATURE REVIEW: “A brand is both, tangible and intangible, practical and symbolic, visible and invisible under conditions that are economically viable for the company” ( Kapferer, 1986). The first sociologist who started to use the term social network systematically is J.A. Barnes who used the term for the first time in his 1954 study “Class and Committees in a Norwegian Island Parish”. Barnes (1954) used the term to describe the existence of social networks, "largely a system of ties between pairs of persons who regarded each other as approximate social equals”, next to the other terms that were used in sociology in those days.

Consumer’s experience of a particular brand could either be by hearing, seeing, or thinking about it and this will help the brand to stick in their memory. Product promoting via brand awareness is one of the easiest and most effective ways to promote commodity related products due to the fact that they have relatively fewer differentiations, which makes it more competitive if you have a strong and recognize brand. Consumers turn to make decision quickly about a product if the know or recognize the brand. The more customers can recognize, retain and remember a firms brand the likely fact that they will shop and that firm is greater than shopping elsewhere. This is an advantage against competitors as customers overlook at the price and other quality when the trust and know a brand, it became a part of the customers life style to shop where they are used to and have confident in the brand. (Keller 2004, 50-53.) “Rajarashmi and Sudarsana” (2004) revealed that, almost all the sample respondents preferred branded products and if their favourite brand is not available in the retail shop, they will go for another store and their favourite brand. If it is not available in the market, the respondents are ready to postpone their decision. It is clear with the research that consumers just don’t want to buy the product but give preference to the brand they like. In the Indian packaged food market where the buyers have lots of options, they still prefer the brands they want to buy. “KimHyunah et al”. (2005) analysed the relationship among brand equity factors (brand awareness, brand image, brand preference and brand loyalty) and suggested a strategy for brand management in contract food service management companies. He concluded that brand awareness has positive effect on brand image and brand preference and recommended that the contract food service companies should focus on improving brand awareness as a brand strategy. In the intense race of packaged foods companies, it is thus very important for companies to design their promotion strategies in such a way that people are aware of the product. In addition, brand preference and brand image have significant positive effects on brand loyalty. Thus, the companies should strive to strengthen brand loyalty through building brand preference and brand image. Brand loyalty promotes more customer visits, which is

directly related to profitability of contract food service management companies, the authors concluded. “Nandagopal and Chinnaiyan” (2003) concluded that the level of awareness among the rural consumers about the brand of soft drinks was high which was indicated by the mode of purchase of the soft drinks by “Brand Name”. The major source of brand awareness was word of mouth followed by advertisements, family members, relatives and friends. From the research it is clear that buying behaviour in rural India is often an influence of trend prevailing in the society. Innovative ways of promoting the product is the necessity for spreading awareness and brand preference in the rural India. “Brown et al”. (2000) reported that it has been important to educate the young consumers about the nutritional benefits of foods, observing the routine and general behaviour and food habits, especially during adolescence and found that there is an interaction between the youth’s food preferences and nutritional awareness within the three environments namely home, social and school. The observations indicate that there is development of some ‘individual traits’ especially during the adolescent years which surpasses the perceived domination of school, home or social environment. The researchers suggest that the food consumption and preferences are frequently of 'fast food' and ‘junk food’ types which feed them poor nutrition and unevenly balanced meals. Although the youth consumers were aware of the facts and healthy eating, the food consumption and preference behaviour did not seem to portray such knowledge, especially within the social and school environments. The study made it clear that educating the consumers about the product right from nurturing stage is equally important even if the foods do not offer much of nutritional value. “Aaker” (2000) regarded brand awareness as a remarkably durable and sustainable asset. It provided a sense of familiarity (especially in low involvement products such as soaps), a sense of presence or commitment and substance and it was very important to recall at the time of purchasing process. Apart from the conventional mass media, there were other effective means to create awareness viz., event promotions, publicity, sampling and other

“Kumar et al”. (1987) examined the factors influencing the buying decision making of 200 respondents for various food products. Country of origin and brand of the products were cross tabulated against age, gender and income. Results revealed that the considered factors were independent of age, education and income. The brand image seemed to be more important than the origin of the product, since the consumers were attracted by the brands. Thus brand image has an upper hand over the other factors influencing the consumption, and brand image as discussed earlier is built with constant delivery of value to the consumer building positive relations with the customers. Priti S. et al (2013) studied the effectiveness of placing brand communication on social networking sites which shows that there is effect of online comments and reviews of products/brands on the buying behaviour of consumers. Study revealed that people do come across various advertisements on social networking sites also prefer to go through the online comments and reviews regarding the brand/products before buying the products for them brand communication on social networking sites plays important role to influence buying behaviour of the customers. Ateş Bayazıt Hayta (2013) studied that social media is on the most important tools communication channels. Consumers do access to information about goods and services to be purchased as per need by means of social media to a great extent. Also studied social media which affects our live in recent years that brings a new dimension to Internet and determine the effects of social media networks on purchasing behaviours of consumers. Many marketers believe that the organizations should aggressively promote only one advantage in the market concerned ( Moise, 2011) and social networks in the online environment allows them to appear more attractive to consumers. The much higher level of efficiency of social media compared to other traditional communication channels prompted industry leaders to state that companies must participate in Facebook, Twitter, MySpace, and others, in order to succeed in online environments (Kaplan and Haenlein, 2010).