Akshya B L Be & Cs

INSTITUTE OF GRADUATE STUDIES
CHAPTER 1
INTRODUCTION
BRAND EVALUATION FOR FINANCIAL INVESTMENT AND

CUSTOMER SATISFACTION.
1.1 THEORITICAL BACKGROUND
1.1.1 INTRODUCTION TO BRAND EVALUATION
What is brand valuation?
Brand Valuation can be defined as the process used to calculate the value of a brand or
the amount of money another party is willing to pay for it or the financial value of
the brand. To put it simply, while brand equity deals with a consumer based
perspective, brand value is more of a company based perspective.
Brand valuation is the job of estimating the total financial value of the brand. Like the
valuation of any product, or self-review, a conflict of interest exists if those that value the
brand also were involved in its creation.
The ISO standard sets out the appropriate process of valuing brands, and sets out six key
requirements:
1. Transparency
2. Validity
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3. Reliability
4. Sufficiency
5. Objectivity
6. Financial, Behavioral and Legal parameters.
Transparency:The term transparency refers to the absence of hidden agendas and

conditions. When applied to the world of marketing, a transparent brand is essentially one
that makes important facts and data available to its consumers.
Validity: The validity of an argument is being valid can be tested, proved or disproved,

and depends on its logical form.
Reliability: Reliability is the first Brand Ability that the brand requires, in order to be a

success in the marketplace. When your brand promises a customer that the product will
perform in a certain manner, within a certain time frame, you must consistently make sure
that the promise is fulfilled or exceeded.
Sufficiency: An adequate amount of something, especially of something essential.
Objectivity: Brand objectives are the goals of a brand. Objectives include both end-goals
such as revenue and steps towards end-goals such as the image of a brand in the market.
Financial, Behavioral and legal parameters: Behavioral finance is the study of the
influence of psychology on the behavior of investors or financial analysts. It also includes
the subsequent effects on the markets. It focuses on the fact that investors are not always
rational, have limits to their self-control, and are influenced by their own biases.
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A brand pyramid is a framework that answers most of the fundamental questions in a

diagram that can be easily shared and communicated across an organization. It also
clarifies brand fundamentals and sets the strategic foundation. In short, a brand
pyramid keeps everyone rowing in the same direction.
Brand Value
Traditional marketing methods have examined the price/value relationship in terms of

dollars paid. Some marketers believe customers perceive value to mean the lowest price.
While this may be true for commodities, some branding techniques are moving beyond
this evaluation.
Brand valuation emerged in the 1980s. Early firms involved in providing brand valuations
included British branding agency.
Valuation methodologies
1.1.2 There are three main types of brand valuation methods.
COST BASED APPROACH:
Cost Based approach is the approach more often used by Aaker and Keller and is
primarily concerned with the cost in creating or replacing the brand. The cost approach
can be further divided into the following methods:
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1. Accumulated Cost or Historical cost method:
It aggregates all the historical marketing costs as the value (Keller 1998).In other words,
the method involves historical cost of creating the brand as the actual brand value. It is
often used at the initial stages of brand creation when specific market application and
benefits cannot yet be identified. However, the shortfalls of this method are that there
exists difficulties as to what would classify as marketing costs and subsequent
amortization of marketing cost as percentage of sales over the brand's expected life.
2. Replacement Cost Method:
The Replacement Cost Method values the brand considering the expenditures and
investments necessary to replace the brand with a new one that has an equivalent utility to
the company. Aaker (1991) proposes that the cost of launching a new brand is divided by
its probability of success. Although this method is easy in terms of calculation, it neglects
the success of an established brand. The first brand in the market has a natural advantage
over the other brands as they avoid clutter and with each new attempt, the probability of
success diminishes.
3. Use of Conversion Model:
Using the method here, one estimates the amount of awareness that needs to be generated
in order to achieve the current level of sales. This approach would be based on conversion
models, i.e., taking the level of awareness that induces trial that further induces regular
repurchase (Aaker, 1991). The output so generated can be used for two purposes: to
determine the cost of acquiring new customers and would be the replacement cost of
brand equity. The major flaw in this system is that the differential in the purchase patterns
of a generic and a branded product is needed and the conversion ratio between awareness
and purchase is higher for an unbranded generic than the branded product and this
indicates that awareness is not a key driver of sales.
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4. Customer Preference Model:
Aaker (1991) proposed that the value of the brand can be calculated by observing the
increase in awareness and comparing it to the corresponding increase in the market share.
But he had identified the problem with this being how much of the increased market share
is attributable to the brand's awareness increase and how much to other factors. A further
issue is that one would not expect a linear function between awareness and market share.
In alternative, another method is the Recreation method which is similar to the

replacement method but involves costs involved in creating the brand again, rather than
simply the costs of replacement. Another distinction that exists between the two is that
the value computed through the replacement cost method excludes obsolescent intangible
assets. Another method is the residual value method states that the value of the brand is
the discounted residual value obtained subtracting the cumulative brand costs from
cumulative revenues attributable to the brand.
MARKET BASED APPROACH:
Market based approach basically deals with the amount at which a brand is sold and is
related to highest value that a "willing buyer & seller" are prepared to pay for an asset.
This approach is most commonly used when one wishes to sell the brand and consists of
methods herein stated:
1. Comparable Approach or the Brand Sale Comparison Method
This method involves valuation of the brand by looking at recent transactions involving
similar brands in the same industry and referring to comparable multiples. In other words,
this method takes the premium (or some other measure) that has been paid for similar
brands and applies this to brands that the company owns. The advantage of this approach
is that it looks at a third party perspective that is, what the third party is willing to pay and
is easy to calculate but the flaw in this method is that the data for comparable brands is
and the price paid for a similar brand includes the synergies and the specific objectives of
the buyer and it may not be applicable to the value of the brand at issue.
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2. Brand Equity based on Equity Evaluation method
Simon and Sullivan (1993) believe that brand equity can be divided into two parts:
 The "demand-enhancing" component, which includes advertising and results in

price premium profits,
 The cost advantage component, which is obtained due to the brand during new
product introductions and through economies of scale in distribution.
Hence, they basically estimated the value of brand equity using the financial market value
and the advantage of this approach is that it is based on empirical evidence but shortfalls
of this approach is that it assumes a very strong state of efficient market hypothesis and
that all information is included in the share price.
3. Residual Method
Keller has proposed the valuation of the brand by means of residual value which would
be when the market capitalization is subtracted from the net asset value. It would be the
value of the "intangibles" one of which is the brand.
Another alternative approach that is suggested is that of usage of real options as proposed
by Damodaran (1996). The variables that need to be calculated are: risk free interest rate,
implied volatility (variance) of the underlying asset, the current exercise price, the value
of the underlying asset and the time of expiration of the option. This method is useful in
calculating the potential value of line extensions but the inherent assumptions in this
approach make any practical application difficult.
INCOME BASED APPROACH:
Income Based or Economic Use approach is the valuation of future net earnings
directly attributable to the brand to determine the value of the brand in its current use.
This method is extremely effective as it shows the future potential of a brand that the
owner currently enjoys and the value is useful when compared to the open market
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valuation as the owner can determine the benefit foregone by pursuing the current course
of action.
The methods used under the approach are as follows:
1. Royalty Relief Method:
The Royalty Relief method is the most popular in practice. It is premised on the royalty
that a company would have to pay for the use of the trademark if they had to license it
(Aaker 1991).
The methodology that needs to be followed here is that the valuer must firstly determine
the underlining base for the calculation (percentage of turnover, net sales or another base,
or number of units), determine the appropriate royalty rate and determine a growth rate,
expected life and discount rate for the brand. Valuers usually rely on databases that
publish international royalty rates for the specific industry and the product. This
investigation results in a variety and range of appropriate royalty rates and the final
royalty rate is decided after looking at the qualitative aspects around the brand, like
strength of the brand team and management. This method has an edge of being industry
specific and accepted by tax authorities but this method loses out as there are really few
brands that are truly comparable and usually the royalty rate encompasses more than just
the brand.
2. Differential of Price to sale ratios method:
The Differential of Price to Sale ratios Method calculates brand value as the difference
between the estimated price to sales ratio for a branded company and the price to sales
ratio for an unbranded company and multiplies it by the sales of the branded company.
Why this method can be used is because information is readily available and it is easy to
conceptualize but the drawback is that the comparable firms are a limited few and there
exists no distinction between the brand and other intangible assets such as good customer
relationships.
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3. Price Premium Method
The premise of the price premium approach is that a branded product should sell for a
premium over a generic product (Aaker, 1991). The Price Premium Method calculates the
brand value by multiplying the price differential of the branded product with respect to a
generic product by the total volume of branded sales. It assumes that the brand generates
an additional benefit for consumers, for which they are willing to pay a little extra.The
fault in this method is that where a branded product does not command a price premium,
the benefit arises on the cost and market share dimensions.
4. Brand Equity based on discounted cash flow:
The problem faced by this method is the same as when trying to determine the cash
flows(profit) attributable to the brand. From a pure finance perspective it is better to use
Free Cash Flows as this is not affected by accounting anomalies; cash flow is ultimately
the key variable in determining the value of any asset. Furthermore Discounted Cash
Flow do not adequately consider assets that do not produce cash flows currently. The
advantage of this model is that it takes increased working capital and fixed asset
investments into account.
5. Brand Equity based on differences in return on investment, return on assets

and economic value added.
These models are based on the premise that branded products deliver superior returns,
therefore if we value the "excess" returns into the future we would derive a value for the
brand (Aaker, 1991). This method is easy to apply and the information is readily
available, but there is no separation between brand and other intangible assets and does
not adjust, by their volatility, the earnings of the two companies compared, including
discount rate.
Other methods also include conjoint analysis, income split method, brand value based on
future earnings, competitive equilibrium analysis model, etc. The very fact that there are
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so many methods worth discussing under the income or economic approach show how
accurate and sought after this approach is.
1.1.3 FORMULARY APPROACH:
The Formulary approaches are those that are extensively used commercially by

consulting other organizations. This approach is similar to the income or economic use
approach differing in the magnitude of commercial usage and employing multiple criteria
to determine the value of the brand. Within formulary approaches are the following
approaches:
1. Interbrand Approach
Interbrand is a brand consultancy firm, specializing in areas such as brand strategy, brand
analytics, brand valuation, etc. It determines the earning from the brand and capitalizes
them by making suitable adjustments. (Keller, 1998) The firm bases its brand valuation
on financial analysis, role of the brand and brand strength.
The firm attempts at determination of brand earnings by means of using a brand index
which is based on 7 factors namely –leadership, internationalization/geography, stability,
market, trend, support and protection in the descending order of weightage. This approach
is popular and widely appreciated because of its ability to take all aspects of branding into
account. The difficulty in this approach is that it is difficult to determine the appropriate
discount rate because parts of the risks usually included in the discount rate factored into
the Brand Index score. In addition to that, even the capital charge is difficult to ascertain.
Aaker reveals that "...the Interbrand system does not consider the potential of the brand to
support extensions into other product classes. Brand support may be ineffective; spending
money on advertising does not necessarily indicate effective brand building. Trademark
protection, although necessary, does not of itself create brand value."
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2. Finance World Method
The Financial World magazine method utilizes the "brand index", comprising the same
seven factors and weightings. The premium profit attributable to the brand is calculated
differently. This premium is determined by estimating the operating profit attributable to
a brand, and then deducting the earnings of a comparable unbranded product from this.
This latter value could be determined, for example, by assuming that a generic version of
the product would generate a 5% net return on capital employed (Keller, 1998). The
resulting premium profit is adjusted for taxes, and multiplied by the brand strength
multiplier.
3. Brand Equity Ten
As stated by Aaker, the Brand Equity Ten Method measures brand equity through 5
dimensions – loyalty, perceived quality or leadership measures, other customer oriented
association or differentiation measure like brand personality, awareness measures and
market behavior measures like market share, market price and distribution coverage.
Brand Equity ten, thus, looks at the customer loyalty dimension of brand equity and the
measures to create a measurement instrument.
4. Brand Finance Ltd.
Brand Finance Ltd. is a UK based consulting organization which undertakes brand

valuation by means of identifying the position of the brand in the competitive
marketplace, the total business earnings from the brand, the added value of total earnings
attributed specifically to the brand and beta risk factor associated with the earnings. On
the value so obtained, it discounts the brand added value after tax at a rate that reflects the
brand risk profile.
1.1.4Uses of brand valuation companies
Common purposes are:
 value reporting
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 business buying and selling decisions

 tracking Shareholders value
 licensing
 dispute resolution
 legal transaction
 accounting
 strategic planning
 management information
 taxation planning and compliance
 liquidation
 litigation support
 Investor's presentation/ Shareholder's report
 Raising funds
 The ability to summon resources quickly in a systemic breakdown or apocalypse
Interbrand classifies these uses of brand valuation in three categories.
1. Financial applications (e.g. M&A, balance sheet valuation, investor relations)

2. Brand management applications (e.g. brand portfolio management, resource
allocation)
3. Strategic / Business case applications (e.g. brand architecture, brand repositioning)
Brand valuation companies
The recent rise of brand valuation practice led to the multiplication of valuation
companies. These companies not only rank brands but also sell them some
recommendations for them to improve their portfolio and brand value. The most reputed
companies are Interbrand, Millward Brown and Brand Finance.
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1.1.5 Brand equity
Brand equity is a phrase used in the marketing industry refers to the perceived worth of

a brand in and of itself i.e., the social value of a well-known brand name. It is based on
the idea that the owner of a well-known brand name can generate more revenue simply
from brand recognition, as consumers perceive the products of well-known brands as
better than those of lesser-known brands. In other words, brand equity refers to "the
branding of a product name on an attention-deficit public.
In the research literature, brand equity has been studied from two different perspectives:
cognitive psychology and information economics. According to cognitive psychology,
brand equity lies in consumer’s awareness of brand features and associations, which drive
attribute perceptions. According to information economics, a strong brand name works as
a credible signal of product quality for imperfectly informed buyers and generates price
premiums as a form of return to branding investments. It has been empirically
demonstrated that brand equity plays an important role in the determination of price
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structure and, in particular, firms are able to charge price premiums that derive from
brand equity after controlling for observed product differentiation.
The brand equity concept
While most brand equity research has taken place in consumer markets, the concept of
brand equity is also important for understanding competitive dynamics and price
structures of business-to-business markets. In industrial markets competition is often
based on differences in product performance. It has been suggested however that firms
may charge premiums that cannot be solely explained in terms of technological
superiority and performance-related advantages. Such price premiums reflect the brand
equity of reputable manufacturers. Three brand equity drivers were selected by
researchers from numerous factors that have impact on a brand: brand awareness, brand
perspective, and brand attachment.
Brand equity is strategically crucial, but famously difficult to quantify. Many experts
have developed tools to analyze this asset, but there is no agreed way to measure it. As
one of the serial challenges that marketing professionals and academics find with the
concept of brand equity, the disconnect between quantitative and qualitative equity values
is difficult to reconcile. Quantitative brand equity includes numerical values such as profit
margins and market share, but fails to capture qualitative elements such as prestige and
associations of interest. Overall, most marketing practitioners take a more qualitative
approach to brand equity because of this challenge. In a survey of nearly 200 senior
marketing managers, only 26 percent responded that they found the "brand equity" metric
very useful.
1.1.6 Brand finance
Brand Finance is an independent branded business valuation consultancy. It advises

branded organizations, or those with intangible assets, on how to maximize their value
through effective management, of their brand and other intangible assets. Brand Finance
has been certified with ISO 10668:2010. As of July 2017, the company evaluates over
3,500 brands annually.
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Brand rating
In determining the appropriate royalty rate, Brand Finance establishes a range of

comparable arm’s length royalty rates, and determines the point within the range that the
brand under review falls by reference to a brand rating. The brand rating is calculated
using Brand Finance's Brand Beta analysis which benchmarks the strength, risk and
potential of a brand, relative to its competitors, on a scale ranging from AAA to D. It is
conceptually similar to a credit rating. The data used to calculate the ratings comes from
various sources including Bloomberg, annual reports, client-commissioned research and
Brand Finance internal research.
1.1.7 Brand Valuation and Brand Equity:
Brand Valuation can be defined as the process used to calculate the value of a brand or
the amount of money another party is willing to pay for it or the financial value of the
brand.
The concept of Brand Value, although similarly constructed to that of Brand Equity, is
distinct. To put it simply, while brand equity deals with a consumer based perspective,
brand value is more of a company based perspective. As early as 1991, Srivastava and
Shocker identified brand equity as a multidimensional construct composed of brand
strength and brand value. This indicates that brand equity is a concept a lot broader than
brand value.
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Evaluating Brands:
Before evaluating brands, two essential questions need to be answered i.e. what is being
valued, the trademarks, the brand or the branded business and secondly, the purpose for
such valuation. This brings us to the answering what the utility of undertaking brand
valuation is. The process of brand valuation is of primal importance not only for the brand
and the respective owning company to improve upon the same but also for the purposes
to increase the market value and ascertain accuracy in instances of mergers and
acquisitions. In other words, brand valuation would comprise of technical valuation
which can be utilized for balance sheet reporting, tax planning, litigation, securitization,
licensing, mergers and acquisitions and investor relations purposes and commercial
valuation which is operational for the purpose of brand architecture, portfolio
management, market strategy, budget allocation and brand scorecards. Thus, the
application of brand valuation would be for strategic brand management and financial
transactions.
1.1.8 Current Trend/Practices in Brand Evaluation:
However, Brand Valuation is no longer limited to these two areas anymore. International
Organization for Standardization (ISO) came up with ISO 10668 – Monetary Brand
Valuation in 2010, which laid down principles which should be adopted when valuing
any brand and is popularly followed by most firms indulging in valuation of brands like
Interbrand, Finance World and Brand Equity Ten. ISO 10668 is a 'meta standard' which
succinctly specifies the principles to be followed and the types of work to be conducted in
any brand valuation. It is a summary of existing best practice and intentionally avoids
detailed methodological work steps and requirements. As per ISO 10668, each brand is
subjected to an analysis on three levels – Legal analysis, Behavioral analysis and
Financial Analysis. Keeping in mind that the nature and concept of value is difficult to
grasp on account of being subjective in nature, these three methods of analysis objectify
the valuing of brands.
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1.1.9 Importance of Brand Valuation

1. Mergers and Acquisitions: Usually, a company or an organization does not pay the
book value while acquiring another business entity. Now the difference between the paid
acquisition price and book value is known as Goodwill. Goodwill can be defined as the
value of a business entity which is not directly attributable to its tangible assets and
liabilities. Estimating the financial value using brand valuation of a brand helps us to
determine the premium over book value that a buyer should be paying.
2. Licensing: One of the approaches to take advantage of the value of a solid brand is by
broadening or permitting the brand. It is feasible for both the licensor and the licensee to
profit financially from an authorizing course of action. The licensor profits by another
wellspring of income that requires minimal capital speculation. The licensee benefits by
having a lower channel, publicizing and client obtaining costs.
3. Financing: While companies don't convey marks on their monetary records as long-
term resources, money related markets perceive the commitment brands have on investor
esteem. Organizations with solid brands consistently acquire preferable budgetary terms
over organizations with poor brands.
4. Brand Reviews: Usually, brand investment reviews entail the comparison, across
brands and against competitors of hard measures, such as sales and market share, and soft
measures, such as reputation and awareness. For some brands, it is also important to
determine financial value. Brand valuations allow companies to gauge their return on
brand investment and to develop appropriate investment strategies across a portfolio of
brands.
5. Budget Allocations: The marketing mix is utilized by advertisers who must settle on
choices about the assignment of spending plan and assets. Organizations can now more
precisely gauge the blend of promoting vehicles required to expand both spending
proficiency and advertising viability. For a few organizations, brand valuations are a basic
component of the marketing mix.
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1.1.10 Advantages of Brand Valuation
1. Brand valuation changes the outlook of the firm and makes the executive's frameworks
that initially recognize and afterward measure the key drivers of brand an incentive in the
firm, from both the advertising and the money (investor esteem) perspective.
2. It builds up the frameworks that catch a past filled with these brand esteem drivers and
hence loans validity to the valuation procedure sometime in the future while decreasing
the cost.
3. It empowers the brand to be overseen against indistinguishable criteria from different

interests in the firm.
1.1.11 Disadvantages of Brand Valuation
1. Nearly all models don't meet prerequisites, for example, dependability, undeniable
nature and objectivity.
2. All buyer situated models don't think about money related qualities and accordingly are
not appropriate for merger and securing, outside announcing, spending arranging, brand
authorizing and encroachment of brand rights. Conversely, all monetary arranged models
don't consider brand planning and brand the executives.
3. Only the brand valuation models consolidating both buyers arranged and budgetary
situated perspectives think about money related angles just as non-fiscal viewpoints.
Subsequently, the brand assessment is very abstract concerning the change of non-fiscal
qualities into money-related qualities by utilizing, for example, none experimentally tried
scoring-models. Moreover, they are not straightforward because of their business
foundation.
4. An unlimited, acknowledged model does not exist.
5. An extra and frequently ignored point is the comprehensive thought of the organization
and its few corporate assessment approaches.
Example of Brand Valuation
Some examples of brand valuation are:
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1. Brand value of Amazon in 2018 is $150.8 billion. In terms of market capitalization and
revenue, Amazon is the largest online business.
2. Brand value of Apple in 2018 is $146.3 billion making it rank 2 in terms of brand value
with a 37% change from last year.
1.2 NEED FOR THE STUDY
This study seeks to clarify the mentioned statement by outlining the role of branding in
customer satisfaction. The objective of this thesis is to investigate the role of branding, to
study the process of branding, how a brand can influence customers’ perception and gain
customers’ satisfaction, and to find out the relationship between customer satisfaction and
brand loyalty. Consequently, this research initially deals with a theoretical insight into the
branding process and how to gain customer satisfaction. Based on the theoretical
background on word explanations and on the development of branding, it is then possible
to build the necessary connections to the empirical approach: conducting a survey about
branding and customer satisfaction of Sri Bhagyalakshmi company. Beside the theoretical
background, it is essential to provide the reader with a detailed theoretical approach into
the branding process. Based on this theory, it is finally possible to illustrate the role of
branding in customer satisfaction from a practical approach by conducting a survey for a
company. The final conclusion of this research is formed by a discussion on the outcome
of the survey. Furthermore, part of the research will contain primary data that will be
obtained through an online questionnaire which can be found in the appendices at the end
of this paper.
1.3 CONCEPTS RELATED TO AREA OF STUDY
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CUSTOMER SATISFACTION:
Who is Customer?
A customer (sometimes known as a client, buyer, or purchaser) is the recipient of

a good, service, product or an idea - obtained from a seller, vendor, or supplier via
a financial transaction or exchange for money or some other valuable consideration.
Customer satisfaction is defined as a measurement that determines how

happy customers are with a company's products, services, and capabilities. Customer
satisfaction information, including surveys and ratings, can help a company determine
how to best improve or changes its products and services.
Customer satisfaction (often abbreviated as CSAT) is a term frequently used

in marketing. It is a measure of how products and services supplied by a company meet or
surpass customer expectation. Customer satisfaction is defined as “the number of
customers, or percentage of total customers, whose reported experience with a firm, its
products, or its services (ratings) exceeds specified satisfaction goals.”
The Marketing Accountability Standards Board (MASB) endorses the definitions,

purposes, and constructs of classes of measures that appear in Marketing Metrics as part
of its ongoing Common Language in Marketing Project. In a survey of nearly 200 senior
marketing managers, 71 percent responded that they found a customer satisfaction metric
very useful in managing and monitoring their businesses.
It is seen as a key performance indicator within business and is often part of a Balanced

Scorecard. In a competitive marketplace where businesses compete for customers,
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customer satisfaction is seen as a key differentiator and increasingly has become a key
element of business strategy.
"Customer satisfaction provides a leading indicator of consumer purchase

intentions and loyalty." "Customer satisfaction data are among the most frequently
collected indicators of market perceptions. Their principal use is twofold:"
1. "Within organizations, the collection, analysis and dissemination of these data

send a message about the importance of tending to customers and ensuring that
they have a positive experience with the company's goods and services."
2. "Although sales or market share can indicate how well a firm is
performing currently, satisfaction is perhaps the best indicator of how likely it is
that the firm’s customers will make further purchases in the future. Much research
has focused on the relationship between customer satisfaction and retention.
Studies indicate that the ramifications of satisfaction are most strongly realized at
the extremes."
On a five-point scale, "individuals who rate their satisfaction level as '5' are likely to
become return customers and might even evangelize for the firm. (A second important
metric related to satisfaction is willingness to recommend. This metric is defined as "The
percentage of surveyed customers who indicate that they would recommend a brand to
friends." A previous study about customer satisfaction stated that when a customer is
satisfied with a product, he or she might recommend it to friends, relatives and
colleagues. This can be a powerful marketing advantage.) "Individuals who rate their
satisfaction level as '1,' by contrast, are unlikely to return. Further, they can hurt the firm
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by making negative comments about it to prospective customers. Willingness to

recommend is a key metric relating to customer satisfaction."
1.3.1 The main six methods to measure customer satisfaction are:
91% of unhappy customers will never buy from you again. The number one objective of
any business should therefore be to create happy customers.
There are, however, some great methods and metrics out there designed for exactly this
purpose. Let's go through some that you can apply in your business today.
1. Customer Satisfaction Surveys
The customer satisfaction survey is the standard approach for collecting data on customer
happiness. It consists of asking your customers how satisfied they are, with or without
follow up questions. Three useful variations:
 In-App Surveys
 Post-Service Surveys
 Long Email Surveys
In- App Surveys, with this you integrate a subtle feedback bar inside your website, with
generally not more than one or two questions. It’s one of the methods with the highest
response rates, thanks to the fact that the customer is asked for her opinion while she’s
engaged with your company. In-app surveys are especially handy to measure some of the
standard customer satisfaction metrics, like NPS or CES covered below.
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Post Service Surveys. This type of survey focuses on the customer’s satisfaction with a
specific service she’s just received. You ask it right after the delivery, when it's still fresh
in the mind. This can be done in email support with a rating link in the mail, or in live
chat with a rating view that appears after the chat. It can also be done over the phone, but
it's somewhat problematic because it takes more time from the customer, and she might
not feel comfortable sharing an unfiltered opinion.
In certain cases, you have a face-to-face touchpoint with your customer after the service,
for example in a restaurant. This is an excellent opportunity to collect feedback on the
spot using a tablet. A great iPad survey tool is Survey Anyplace, which also offers offline
surveys : you can collect survey responses without internet connection and sync the data
afterwards.
Email Surveys. The above survey methods aren't suitable for in-depth insights about
your customer happiness. Why are they happy or unhappy? Email surveys, on the other
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hand, are a good tool for this. Although they have a downside of low response rates (10%
- 15%, according to SurveyGizmo ), they do allow your customer to take their time in
answering multiple questions. Google Forms is an excellent free tool for this purpose.
Find a survey template here . Also check out this list of Survey Questions Do's and
Don’ts.
2.Customer Satisfaction Score (CSAT)
This is the most standard customer satisfaction metric, asking your customer to rate her
satisfaction with your business, product, or service. Your CSAT score is then the average
rating of your customer responses.
The scale typically ranges between 1 – 3, 1 – 5, or 1 – 10. A larger range is not always
better, due to cultural differences in how people rate their satisfaction. An article in
Psychological Science , for example, showed that people in individualistic countries
choose the more extreme sides more frequently than those in collectivistic countries.
An American is more likely to rate a service as “amazing” or “terrible” than for example
a Japanese, who will stick to “fine” or “not satisfactory." Such differences are important
to be aware of with an international customer base.
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Simpler scales are more robust to cultural differences and more suited for capturing
service quality. This is why the US government uses a simple emoji-based CSAT
question for its feedback, and why the live chat survey example above uses a 5-star
rating.
The charm of the CSAT metric comes from its directness. The downside, however, is that
satisfaction is hard to estimate, even for the customer. It’s directed at a sentiment , which
is fleeting and mood dependent.
3. Net Promoter Score (NPS)
The Net Promoter Score (NPS) measures the likeliness of a customer referring you to
someone, and it’s probably the most popular way of measuring customer loyalty .
Customer are asked how likely they are to recommend you on a scale from 1 to 10.
The strength from NPS is that it's not about an emotion of satisfaction, but about your
intention of referring – which is easier to answer. It cuts down to the question of whether
the product is good enough to put your own reputation on the line.
Calculating your NPS score is quite easy. Take the percentage of respondents who fall
within the ‘promoter’ category (10 - 9) and subtract the percentage of ‘detractors’ (0 - 6).
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Some tools for measuring NPS work with email questionnaires. Examples are Trustfuel
NPS (free) and Promoter.io (paid). Others work with in-app surveys,
like Wootric (freemium). The Net Promoter Network offers a a benchmark report to give
you insight about how you compare in your industry.
One added benefit of NPS is that it directs your customers’ attention towards referring, an
option they might not have thought about before.
4.Customer Effort Score (CES)
With this method, customers aren’t asked for their satisfaction or likeliness of referring,
but for the effort it took them to have their issue solved — generally on a scale from 1
(very low effort) to 7 (very high effort).
Your aim is, of course, to lower this average score. According to CEB , 96% of customers
with a high effort score showed reduced loyalty in the future, while that was the case with
only 9% of those who reported low effort scores.
This idea for a customer satisfaction metric was introduced in the Harvard Business
Review article Stop Trying to Delight Your Customers .
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It challenges the accepted idea that excellent customer service equals exceeding customer
expectations. Through their analysis, the authors found that customers are much more
likely to punish bad service than to reward good service.
They showed that the costs of exceeded customer expectations are high, while the payoffs
are minimal.
Don’t ask, “How satisfied are you with this service?” ; ask, “How easy was it to get in
contact/make a purchase/have your issue resolved?”
Relevance is crucial here. The time to pop the question is right after your customer had
her experience. Otherwise, the ease of the experience might have been forgotten. It can be
asked in-app (ease of the website/app experience), via live chat, or via email (ease of the
service).
Check market offers a free template to create your own CES survey. With some tweaking,
many customer service tools are suited for this purpose. Read more in our post on how to
get to the right customer effort score question .
Social Media Monitoring
Social media has had an immense impact on the relationship between business and
customer. Where before, a great or poor service experience would maybe be shared with
the closest family and friends, social media offered an outlet and reach to potentially
millions of people.
Because of that, it’s the perfect place to hear what your customers are really thinking
about you. If you have the right tools to track this, that is.
Facebook and Twitter are of course relevant platforms to track, but also platforms like
Quora, Yelp, TripAdvisor, etc.
 Google Alerts . This Google service notifies you when your brand appears in a
prominent position.
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 Mention . A powerful freemium tool that gives you a heads up whenever your
brand is mentioned on the web. It’s especially handy for social media tracking, for which
Google Alerts is not suitable.
 Socialmention . A free tool that analyzes social mentions of your brand on the
web. Among others, it shows the likeliness of your brand being discussed on the web, the
ratio of positive to negative mentions, the likelihood of people mentioning your brand
repeatedly and the range of influence.
6.Things Gone Wrong
This metric originates from the Lean Six Sigma approach , and measures the number of
complaints, or "Things Gone Wrong," per 100, 1000, or up to a 1,000,000 units of survey
responses, units sold, or other.
The standard approach to measure TGW is through complaint sections in customer

surveys, but you could also maintain internal metrics. In the worst case scenario your
score is 1 or higher, meaning that you get at least 1 complaint per chosen unit.
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1.3.2 Objectives:
Show your customers you value them
A customer satisfaction survey demonstrates the value you place on your customer’s
experience with your company. Although many businesses are quick to placate
customers who voice complaints, a business that pre-emptively strives to satisfy the
customer makes an even better impression. This consideration of the customer’s
opinions can foster loyalty in the long run and translate to repeat sales.
Gather customer demographics
Customer satisfaction surveys can be an excellent opportunity to form a clear concept of

your demographic. You can find out your average customer’s age, gender, occupation
and other statistics that will help you tailor your products and services as well as your
marketing and communications material.
Evaluate customer service representatives
Questions related specifically to the quality of service your customers received from
sales clerks or other representatives of the company can help you evaluate employee
performance. A customer that wouldn’t normally complain about poor customer service
or praise good customer service on their own accord might make an exception when
presented with a survey that elicits their opinions.
Be convenient for customers
A survey that’s long, difficult to comprehend or onerous in any way is inconsiderate of

the customer’s time. Customers that are gracious enough to take time out of their day to
help you better your business should be rewarded with a survey that’s easy to
understand complete and return.
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Lead to change
After customer surveys have been completed and trends have been analyzed, the
company should act on what the results have revealed. If your survey data indicates that
your website is difficult to navigate, take action toward getting the website layout
tweaked. If customers have voiced concerns that your return policy is unfair, revisit and
revise it if necessary. Surveys that don’t evoke changes in the company send a bad
message about the company’s commitment to customer service.
1.3.3 Advantages of Customer Satisfaction
 Up-to-date feedback: Gather current customer feedback on various aspects of

your company. You can stay on top of customer trends through regularly
scheduled online surveys or email surveys, and receive instant customer feedback.
It is always useful to acquire insight into how your customers are currently
reacting to all aspects of your business.
 Benchmark results: You can administer the same survey every so often to
customers to gain continued insight into your customers. Surveys can have the
same questions, which will allow you to compare data over time and benchmark
survey data across previous years to determine if any changes need to be made.
 Show that you care: Customers like to be asked for their feedback. It gives the
customer the perception that your company values them; is committed to keeping
them as a long-term customer; and bases business decisions on their feedback.
1.3.4 Disadvantages of Customer Satisfaction
 Too many surveys, so little time: Your customers are bombarded with online
surveys. Surveys may be simple to complete, however, some people simply don’t
like to complete them. Sending surveys too often can irritate customers and lead
to customer burnout. Customer burnout can result in low response rates or result
in lower satisfaction scores, despite your reputation for providing excellent
products or services.
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 Privacy Issues: We live in a high-tech environment filled with daily doses of

unwanted junk email, email solicitations, and sales calls. When taking an online
survey or a phone survey (or any type of survey), it is hard for your customers to
believe that they aren’t being tracked. Because of insecurities of releasing private
information, customers today are hesitant in giving out information that may lead
to more junk email and unwanted calls. Make certain to assure customers that the
information they provide in response to your customer satisfaction surveys will
not be used. Without this disclaimer, it may be difficult to receive a good response
rate.
1.4 LITERATURE REVIEW
Meaning of review of literature
Review of literature is an important exercise in research because it tells what has been
developed in subject of the study, how it is been done and what are the conclusions
arrived at. Review of literature helps the researcher to find out the research gap.
A number of research studies have been undertaken by different researchers in the field of
waste management at national and international level. Several research works are completed in
India to know how brand evaluation and customer satisfaction is a strategy for financial
investment and for managing an organization’s relationships and interactions with potential
customers.
As Hamed Mohammadi Shahroodi, Hossein Kaviani, (2015) says that statistical
sample of this study consists of 300 customers of food products that have been chosen
through convenience sampling. Due to the non-exclusivity of the food industry, and to
cope with the threats of competitors, food manufacturing companies should address the
formulation of strategies for attracting loyal customers in both short-term and long-term
dimensions. What can determine short-term profits of companies is the attention to
expectations in both attitudinal and behavioral dimensions of customers in relation to a
special brand, that in long-term leads to customer satisfaction and loyalty. The main focus
of this study, i.e. the customer-based brand equity, is described in a variety of ways and
by different stakeholders. According to the findings, the three variables of brand equity
including the ideal internal consistency, brand identity, lifestyle consistency have a
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significant relationship with customer satisfaction, and finally satisfaction leads to

loyalty. And also it can be concluded that if the customer feels that the transaction is in
his/her favor, acts consistent with the company's marketing strategy and repeat purchase,
the company must meet customer expectations and to put him/her in the position to win
the deal.
According to HenrietaHrablikChovanovaa, AleksanderIvanovichKorshunovb (2015)

the content of the paper is based on the partial survey of consumer’s behavior conducted
during the period of six months in 2014 in the Slovak Republic. They had been stress the
fact that brand is the factor which has an impact on consumer purchase decision-making
process. Brands provide information about products and create associations that affect the
mind of the consumer in purchase process. Very important category of consumer
behavior research is brand awareness. Suitable forms of marketing activities as a whole
can create a positive brand associations and start a purchase action of positively seen
brands. Brand represents a certain value in the mind of consumer. Without the
psychological linkage would be a product or a service indistinguishable from each other.
A brand can be successful if the brand management system is competent and as a result of
relevant marketing activities can be seen loyal and satisfied customer/consumer.
Consumer behavior is influenced by a variety of factors interacting in complex ways.
With better understanding of customer’s perceptions; Due to the current global
conditions, the marketplace is becoming a place of a super-saturation of products
resulting in brand loyalty disappearance. These conditions can be avoided when
companies create loyalty relationships with their customers. Therefore it is necessary that
the value proposition of the offered brands meet consumers' values and desires.
As Arun Kumar G (2014) states that selection of samples was based on the convenience
sampling technique. The data was collected from 115 samples and it was analyzed by
using SPSS software. Brand equity is considered as an one of the vital aspect in
determining the customer satisfaction, as it helps the companies in understanding the
level of customer satisfaction and formulating the new strategies in order to customer
delight. In this research the outcome which has been obtained shows that the companies
need to improve in two parameters in order to make the customer fully satisfied.
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Julia Wildfeuer (2018) study reports that the research was conducted to investigate the
role of branding in customer satisfaction and to study the factors that influence a
customer’s satisfaction. There are central questions that must be taken into consideration
in order to define the role of branding in customer satisfaction, such as, what role does the
brand identity and the brand associations involved play, which factors influence a
consumer’s satisfaction, and which role do experiences play in a customer’s behaviour?
In relation to these questions a well-structured questionnaire consisting of questions was
created.
Leslie de Chernatony&Dr Fiona J. Harris (2001) this study on the consumer-based

equity of financial services brands, Fifty two financial service organizations were
identified in the UK and were approached. This study has shown how a valid and reliable
measure has been devised to assess the consumer-based equity of financial services
brands. Adopting Churchill’s (1979) paradigm has provided a sound basis for developing
a consumer-based equity measure. It has identified three key variables that constitute
brand equity, and it enables researchers and managers to appreciate from changes in these
variables why movements are occurring in a brand’s equity. This research has been
specific to financial services and researchers are encouraged to extend this research into
other service and product sectors.
Ramesh Neupane (2015) study states that the primary data are collected through
structured questionnaires survey from the customers different retail companies based on
London. This study is guided by positivism philosophy; cross sectional approach so that
the necessary data was collected at a single point of time rather than frequent observation
over the same sample. The primary data was collected through structured closed ended
questionnaires by conducting a survey. The five elements of brand image: functional,
symbolic, social, experiential and appearance enhances with 15 questions are considered
in this survey. Similarly, five elements of customer satisfaction from SERVQUAL
dimension: tangibles, reliability, responsiveness, assurance and empathy are considered
with 22 questions; and five questions of loyalty intention are considered in the
questionnaires survey. The collected data were analyzed through statistical and
mathematical tools through SPSS 20. The correlation and regression analysis between
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brand image and customer satisfaction; brand image and customer loyalty intention; and
customer satisfaction and loyalty intention were used to assess the relationships between
the variables.
Martin ngumokariuki (2015) study investigates thatin modern competition

environment, as consequences of the efforts made to survive and to create an image on
consumers' minds, brand image is established successfully and is increased as a result of
customer satisfaction. Now, the retail businesses understand the significance of how they
are perceived by their target audiences. Like in any other sector, facilitating competitive
edge, establishing corporate image, creating customer satisfaction and increasing brand
loyalty is essential for long term profitability. For customer satisfaction, supermarkets
should understand customer-specific needs, provide good quality products, and have the
capacity to address customer complaints or problems in a friendly manner. Perceived
good product performance is a key driver of brand image and also significantly influences
customer satisfaction. Knowing how to create customer satisfaction will also provide
benefit for consumers.
Riyan Mega Puri(2017) From the study, it is found that perceived desirability has
significant and positive impact onin modern competition environment, as consequences
of the efforts made to survive and to create an image on costumers minds, brand image is
rooted successfully and is increased as a result of customer satisfaction. Now, the retail
businesses understand the significance of how they are perceived by their target
customers. Like in any other sector, facilitating competitive edge, establishing corporate
image, creating customer satisfaction and increasing brand loyalty is essential for long
term profitability. For customer satisfaction, beauty product should understand customer-
specific needs, provide good quality products, and have the capacity to address customer
complaints or problems in a friendly manner. Perceived good product performance is a
key driver of brand image and also a good influences customer satisfaction. Knowing
how to create customer satisfaction will also provide benefit for consumers. Based on
marketing conception, knowing the needs and requirements of the consumers and creating
benefits to respond them is the basis for being customer oriented. Indeed, being customer
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oriented is also one of the most effective strategies to create differentiation among
competitors.
Khyati, Jeewan Kumar Dhingra(2013) The study mainly focus of work and efforts
regarding customer satisfaction should be on the collection of best practices and the
preparation of guidelines for questionnaires to measure customer satisfaction
“Measuring” satisfaction is one thing; “managing” satisfaction is another and should be
the aim. Effective branding creates a perception that there is no other product, service,
organization or community quite like yours. Whether the distinction is a result of
function, form, ease of use, price or prestige, the consumer believes you offer something
exceptional. The brand image is the targeted customers of the brand. Modern customer-
oriented marketing theory requires an enterprise to take customer satisfaction into account
when making decisions and establishing brand image.
JohanudinLahapa,,NurSafiahRamli(2016) This research had successfully achieved its

goal. This study enhances and fosters the understanding regarding how brand image could
influence customer satisfaction in the Malaysian hotel industry. To sum up, it is hoped
that this research will contribute to the body of knowledge and it can act as a tool to
provide maximum customer satisfaction as well as to be used as a recommendation for
hotels to improve their brand image so that it will attract more customers and able to
retain the existing customers.
1.5 RESEARCH GAP
Despite the importance of the brand positioning very few empirical researches made in
which the role of effective brand positioning, positioning strategies of FMCG brands
across India or across the world. Whereas are many studies made in the field of customer
satisfaction and brand loyalty. Companies want their brands to get recognized. Effective
brand positioning leads to increase in the market share success which further leads to
profitability of the business and helpful in understanding of the customers.
Summary
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After going through the comprehensive literature as mentioned above the study has
convinced that there are mainly the four main constructs brand positioning, promotion
techniques, customer satisfaction and brand loyalty which were identified by the
researcher for the purpose of the present study. Many researchers made a lot of researches
in the field of customer satisfaction and its dependent parameters as well as in brand
loyalty. It was found that brand positioning, promotion techniques are closely associated
with each other and also the customer satisfaction and brand loyalty. All these four
constructs go hand in hand are important.
CHAPTER-2
RESEARCH DESIGN
ABOUT RESEARCH DESIGN

2.1.1 Meaning of Research:
Research in simple terms refers to search for knowledge. It is a scientific and

systematic search for information on a particular topic or issue. It is also known as the
art of scientific investigation. Several social scientists have defined research in
different ways.
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2.1.2 Definition of Research:
According to Redman and Mory (1923), research is a “systematized effort to gain

new knowledge”. It is an academic activity and therefore the term should be used in a
technical sense.
According to Clifford Woody (Kothari, 1988), research comprises “defining and

redefining problems, formulating hypotheses or suggested solutions; collecting,
organizing and evaluating data; making deductions and reaching conclusions; and
finally, carefully testing the conclusions to determine whether they fit the formulated
hypotheses”.
2.1.3 Meaning of Research Design:
A research design is a frame work or blue print for conducting the marketing research
project. It details the procedures necessary for obtaining the information needed to
structure or solve marketing research problems.
In simple words it is the general plan of how you will go about your research.
2.1.4 Definition of Research Design:
According to Ker linger ”Research design is the plan, structure and strategy of
investigation conceived so as to obtain answers to research questions and to control
variance”.
According to Green and Tull “A research is the specification of methods and

procedures for acquiring the information needed. It is the overall operational pattern
or framework of the project that’ stipulates what information is to be collected from
which sources by what procedures”.
TITLE OF THE STUDY
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“A STUDY ON BRAND EVALUATION FOR FINANCIAL INVESTMENT AND

CUSTOMER SATISFACTION MEASUREMENT SRI BHAGYALAKSHMI FOOD
LIMITED”
2.2 STATEMENT OF PROBLEM
Clearly believes that at the absence of brands and trademarks, there will be no reliable
and credible market, and there will be no certainty about what should we get and what
should be avoided (Kotler and Philip, 2006). The main driver of the increase in the
importance of the customers’ satisfaction is the fact that satisfied customers create a
stronger competitive position and lead to greater market share and more profits. Customer
satisfaction is the head of the marketing concept and has great importance among
marketers and researchers in the field of consumers. The primary function of all
organizations in today's competitive world is to establish and maintain a competitive
advantage (Fonseca, 2009). Successful brands are those that are more compatible with the
environment; so in the long term and against the existing competition, they will become
more durable and they can grow. Powerful brands are never far from their goals and plans
and that is why the customers can feel assured about them and use their past experiences
for future.
2.3 OBJECTIVES
 To determine the impact of brand equity on customer satisfaction in Sri

Bhagyalakshmi foods ltd.
 To investigate the role of branding in customer satisfaction in Sri Bhagyalakshmi
foods ltd.
 To critically examine the relationship between brand image and customer
satisfaction.
 To critically evaluate the relationship between brand image and customer loyalty
intention in Sri Bhagyalakshmi foods ltd.
 To analyze the Brand Positioning Strategies of leading brands of the market and
understand the communication dynamics.
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 To understand, review and define the attributes for 'Brand Success' in Sri
Bhagyalakshmi foods ltd.
 Brand Symmetry Index and interpret the results.
2.4 SCOPE OF STUDY
The study mainly focused on food items manufacturing concern named “Sri
Bhagyalakshmi foods ltd”, it will aid various stakeholders: This study will form
the foundation upon which other related and replicated studies can be based on.
Investors will gain an insight on the business and its strategic position within the
environment, which can assist them in determining their viability of their
investments.
2.5 SAMPLING
The data collected for the research is predominantly secondary in nature and no
questionnaire has been formulated for the research. The data has been composed, which is
given by the company and has been taken and interpreted in order to find out the effect of
brand evaluation and customer satisfaction to increase goodwill for it with the help of
Standard Deviation and Correlation.
2.6 DATA COLLECTION
 PRIMARY DATA
Information was collected through personal visit to the company with reference of
production manager of “Sri Bhagyalakshmi foods ltd”
 SECONDARY DATA
Secondary data for this study will be referred from Books, Journals, Articles,
Internet, Study tools etc….
 TOOL USED
Percentage
Bar diagram
Line diagram
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Variance analysis
2.7 HYPOTHESIS & STATISTICAL TOOLS.
The research hypothesis stated for the study as follows-
Hypothesis 1- Customer satisfaction has a direct effect on brand equity but also a
negative indirect effect, resulting from reductions in shareholder value, at greater values.
The overall effect is positive in normal conditions and becomes negative only at extreme
values of customer satisfaction.
Ho- There is no significance relationship between brand awareness and customer

satisfaction.
Ho- There is no positive association between brand loyalty and customer satisfaction.
Ho- There is no significance relationship between perceived quality and customer

satisfaction.
Ho- There is no positive association between brand association and customer

satisfaction.
2.8 LIMITATIONS OF STUDY
 The study is limited for a period of 2 months.

 The study is concentrated only in SRI BHAGYALAKSHMI FOODS LTD.
 Due to lockdown issues couldn’t collect much primary data by visiting to
company personally.
 Customers may give higher priority to some attributes than others in deciding their
choice and response.
 Particular brand positioning may be more valuable for acquiring new customers
and hence the customer response being influenced by it.
CHAPTER SCHEME
CHAPTER 01: INTRODUCTION
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This chapter gives brief introduction to the study and its importance.
CHAPTER 02: RESEARCH DESIGN
This chapter deals with the concept of research design, meaning of the research design, it
consists of design of the study, objectives of the study, statement of the problem, review
of literature, scope of the study, research methodology, tools used for the data collection,
and limitations of the study.
CHAPTER 03: COMPANY PROFILE
This chapter presents a brief insight about the profile of the company. This chapter
consists of history of the company, personnel and industrial relations, range of products,
policy of the company, its objectives, its competitors and organizational chart.
CHAPTER 04: DATA ANALYSIS AND INTERPRETATION
This chapter deals with analysis and interpretation of the data. It concerned with
analyzing the data and interpreting results are drawn using tablets and graphical
representation.
CHAPTER 05: FINDINGS, CONCLUSION AND SUGGESTIONS
This chapter concludes the project report. It comprises of the findings, conclusions and
suggestions based on the data collected.
 Bibliography
 Annexure
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CHAPTER 3
INDUSTRY PROFILE & COMPANY PROFILE
3.1INTRODUCTION
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The Indian food industry is poised for huge growth, increasing its contribution to world
food trade every year. In India, the food sector has emerged as a high-growth and high-
profit sector due to its immense potential for value addition, particularly within the food
processing industry.
Accounting for about 32 per cent of the country’s total food market, The Government of
India has been instrumental in the growth and development of the food processing
industry. The government through the Ministry of Food Processing Industries (MOFPI) is
making all efforts to encourage investments in the business. It has approved proposals for
joint ventures (JV), foreign collaborations, industrial licenses, and 100 per cent export
oriented units.
Market Size
The Indian food and grocery market is the world’s sixth largest, with retail contributing
70 per cent of the sales. The Indian food processing industry accounts for 32 per cent of
the country’s total food market, one of the largest industries in India and is ranked fifth in
terms of production, consumption, export and expected growth. It contributes around 8.80
and 8.39 per cent of Gross Value Added (GVA) in Manufacturing and Agriculture
respectively, 13 per cent of India’s exports and six per cent of total industrial investment.
The Indian government food market is currently valued at US$ 1.3 billion and is growing
at a Compound Annual Growth Rate (CAGR) of 20 per cent. India's organic food market
is expected to increase by three times by 2020.
The online food ordering business in India is in its nascent stage, but witnessing
exponential growth. With online food delivery players like FoodPanda, Zomato, TinyOwl
and Swiggy building scale through partnerships, the organized food business has a huge
potential and a promising future. The online food delivery industry grew at 150 per cent
year-on-year with an estimated Gross Merchandise Value (GMV) of US$ 300 million in
2016.
3.1.1 Investments
According to the data provided by the Department of Industrial Policies and Promotion
(DIPP), the food processing sector in India has received around US$ 7.54 billion worth of
Foreign Direct Investment (FDI) during the period April 2000-March 2017. The
Confederation of Indian Industry (CII) estimates that the food processing sectors have the
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potential to attract as much as US$ 33 billion of investment over the next 10 years and
also to generate employment of nine million person-days.
The term food industries covers a series of industrial activities directed at the processing,
conversion, preparation, preservation and packaging of foodstuffs. The food industry
today has become highly diversified, with manufacturing ranging from small, traditional,
family-run activities that are highly labor intensive, to large, capital-intensive and highly
mechanized industrial processes. Many food industries depend almost entirely on local
agriculture or fishing.
3.2 COMPANY PROFILE
About “SRI BHAGYALAKSHMI FOODS LTD”
SRI BHAGYALAKSHMI AGRO FOODS PRIVATE LIMITED DETAILS
CIN U85110KA1995PTC018152
Date of Incorporation 27 Jun, 1995
Status Active
Company Category Company limited by Shares
Company Sub-category Non-government company
Company Class Private
Business Activity Community, personal & Social Services
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Authorized Capital 50.0 lakhs
Paid-up Capital 49.5 lakhs
Paid-up Capital % 99.0
Registrar Office City Bangalore
Registered State Karnataka
Registration Number 18152
Registration Date 27 Jun, 1995
Listing Status Unlisted
AGM last held on 30 Sep, 2017
Balance Sheet last updated on 31 Mar, 2017
Shri. B S AmaranarayanaGupta, was a visionary leader in the food industry in

India with an intention to serve millions of people with quality food products. His
passion to create a firm footing for the growth of an food industry empire that is
proud not only to be a pioneer in food processing, but also boasts of a grand portfolio
of over 40 food products, rendering services to markets across South India, spanning
over six decades.
Shri. B S Amaranarayana Gupta envisaged the need for quality food processing
owing to the increasing urbanisation and the demand for food products of the new-
age consumers. Sri Bhagyalakshmi Foods has a rare distinction of starting a food
industry, a Rice mill during the pre-independence era, and then progressed on to
processing Wheat, Cereals and Pulses, leading the way for the next generation of
entrepreneurs to expand the business horizon.
Food industries in India have evolved from being a simple, manual system of food
processing to mechanised systems of food processing.
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Traditionally food industries were nothing but families of farmers and workers who
would process, clean and pack food grains and dispatch it to local markets or sell it to
traders of food products.
In the last few decades, food industries in India emerged based on the potential of
agronomy and also on the vast expanding export market for food products.
The first advancement in food processing industry was the invention and adoption of
the rice mills. Farmers slowing grew to become a comprehensive food industry, as
they adopted these technologies. If farmers didn’t have the passion or the know-how,
they gave in to entrepreneurs who had the appetite to take risks and established food
industries, basically with milling units.
The 21st century has dawned the opportunity for conventional food industries to
scale to variable proportions, as the needs and demands of consumers with respect to
food products have increased exponentially.
Sri Bhagyalakshmi Foods being a pioneer in the food industry in India, with a
visionary leader had the distinctive edge to adopt the technologies and scale to meet
the expectations of consumers, not only in India, but also globally.
Food industries are currently facing multitude of challenges, as cities are fast
expanding, posing severe logistic challenges to food industries in India, in addition to
infrastructure issues.
Govt of India is in the process of establishing food parks, inviting the food industries
in India to set up food processing units, food packing units, agro product
manufacturing units, and food products export oriented units.
Sri Bhagyalakshmi Foods is a fourth generation business venture specializing in the

manufacturing and supply of a large variety of food grains, flour and pulses to
distributors, large retailers, Hotels, Restaurants, Caterers, branded supermarkets and
to wholesalers.
With an excellent distribution network, Sri Bhagyalakshmi Foods has significant
retail presence in South India, with an aspiration to scale nationwide.Owing to the
legacy, stringent quality standards in food processing and relationship management,
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Sri Bhagyalakshmi Foods has earned its position as the most sought after brand by
consumers, restaurateurs and retailers alike.
3.3 BACKGROUND AND INCEPTION OF THE COMPANY
Sri Bhagyalakshmi Foods is one of the leading food processing industries in India
and has been a pioneer in food processing for over 6 decades.
The company has set up multiple food processing units, which are state-of-the-art to
cater to the dynamically evolving food industry in India.
Food industry in India is experiencing a paradigm shift, as many corporates and big
brands are venturing into the food products domain. Many companies are mostly into
either trading of food products are simply into retailing of foods / food products,
which is one of the faster growing, economically viable segments today.
Processed food products or agro products is one of the food industries, wherein only
traditional players have been able to sustain and grow, owing to various risks and
challenges.
Food processing industries are now looking at moving to food parks, considering the
long-term vision and the government plan to set up large scale food parks at strategic
locations in India.
Over the next few years food processing industries and Food products manufacturing,
including beverages, ready-to-eat food products and foods, will be supported by the
Government and monitored closely to reign in standards that are in par with the
western countries.
Food industries in India have seen a surge in exports of processed food products and
foods, which is empowering the food processing units to invest in technology for
food processing, food packing, food storage and logistics, enabling them to compete
globally.
Sri Bhagyalakshmi Foods has also forayed into exports of food products through a
dedicated food processing unit in Bangalore, exclusively to cater to the overseas
clientele. The Food products are processed and packed using advanced food
processing and packing equipments. This food processing unit in Bangalore is also
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equipped with storage facilities to manage the inventory for the increasing demands
of the overseas markets.
Amongst the many agro and food processing industries, Sri Bhagyalakshmi Foods is
the only one of its kind where many food products are processed and packed using
advanced equipments,making the foods not only hygienic but also long-lasting.
The consistency in quality of food products is achieved through excellent back-end
integration with famers / suppliers. It is very critical in the Food industry to ensure
the quality of raw materials is not compromised and also the quality is consistent,
owing to a large customer base for Sri Bhagyalakshmi’s Food products, which have
been patronizing the brand of foods since decades.
Sri Bhagyalakshmi Foods has invested in a comprehensive food lab, for testing both
raw materials and processed food products. The testing lab is equipped to check the
raw paddy using a miniature rice mill, which is uncommon in Indian food processing
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industries.
The lab also has testing equipments to test consistency of the flours and the moisture
retaining ability of the flours.
The testing lab is managed by qualified and experienced food technologists, with
focus on enhancing the quality of food products processed at the food processing
industries.
The company has been processing and packing over 40 products, in addition to
another 40 food products that are sourced and traded to support comprehensive needs
of customers, including Cereals, Pulses, Flours, Sooji / Semolina and Sugar. The list
of food products include varieties of Rice - raw rice (sonamasoori, Jeerasambar,
Matta rice, Ponni rice),
boiled rice, steamed rice, basmati, wheat, wheat flour, Atta,Chakki Atta, Ragi, Ragi
Flour, Gram Dhal, Gram Flour, Bengal Gram, Maida, Rice Flour, Thin Rice Flakes.
Thick Rice Flakes, Maize, Maize flakes, Green Peas, Toor Dhal, Green Gram, Moong
Dal, UradDal,KabooliChanna, Kala Masoor, Fried Gram, White peas, Sugar, and
SavouryFlavour Mix.
Over the next few years, Sri Bhagyalakshmi Foods will also foray into ready-to-eat
products, spices and wholesome foods, with the advantage of having the ability to
source, process, pack and market the foodproducts independently, which is
unparalleled in the food processing industries in India.
Sri Bhagyalakshmi Foods is also in the process of establishing a state-of-the-art food
park in the outskirts of Bangalore, wherein all the food processing units will be
housed within one campus, with complete food processing and food packing
operations managed through automation.
3.4 NATURE OF THE BUSINESS CARRIED
Sri Bhagyalakshmi Foods through its subsidiary company Food Valley Impex has
setup an Export Oriented Unit at Bangalore, India, to cater to the Middle East and
African Markets.Food Valley Impex, Bangalore was setup as a state-of-the-art food
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processing unit, with stringent quality processes and packaging equipments to serve
specific requirements of the overseas clients.
Bangalore was the obvious choice of location to enable a quick turn-around-time,

with ease of accessibility to the dynamic ports.
3.4.1 Customer Satisfaction by Bhagyalakshmi limited:
Bhagyalakshmi Technologies Private Ltd is a professionally managed company with

expertise in talent search, Headhunt, Contract staffing, permanent staffing and
recruitment process outsourcing. Their core business is to identify and assess outstanding
professionals and recruit them to meet their client’s demands. They have a team with mix
of talent and expertise which enable them to understand and add value to their client
recruitment process and strategies. Their strength lies in providing highly skilled talented,
well qualified and experienced professionals to meet the client’s business needs and build
trust in customer and for customer satisfaction. They have developed hardcore expertise
to manage their recruitment process in understanding client’s needs, identify the right
talent and meet the expectations of our customer.
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Sri Bhagyalakshmi Foods has been a preferred partner for many prestigious
institutions in India, since decades. When it comes to food Sri Bhagyalakshmi Foods
has always been the only choice for large institutions who place utmost emphasis on
quality and taste of the food prepared in their institutions.
Sri Bhagyalakshmi Foods strives to add value and enhance the quality of service
through a dedicated relationship management team and support staff. The supply
chain management is exclusively planned for the institutional clients, to suit their
priority and needs.
3.4.2 CERTIFICATIONS
Sri Bhagyalakshmi Foods is renowned as a leading Indian Multinational company not

only for superior quality products but also for business ethics, values and service
commitment. Sri Bhagyalakshmi Foods has a rare distinction of being compliant with
respect to all statutory norms, uploading the commitment to our stakeholders.Each
and every product of Sri Bhagyalakshmi Foods is certified by FSSAI, with each Sri
Bhagyalakshmi Foods product pack carrying the FSSAI symbol and license number.
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Sri Bhagyalakshmi Food’s products are tested and certified under stringent testing
conditions / standards of CFTRI, Mysore.Sri Bhagyalakshmi Foods is rated CRISIL
SE 1A, consistently for the last few years, owing to steadfast financial commitments.
3.4.3FOOD QUALITY
Sri Bhagyalakshmi Foods in partnership with its network companies is poised to

make the next big leap in agro food processing through the establishment of a
privately-owned, state-of-the-art Agratha Mega Food Park LLP in Bengaluru.
This food park will cater to processing of agro based food products and agro
processed foods, through dedicated, advanced milling units, manufacturing units,
packaging units, modern silos for storage, cold storage and an array of ancillary units
to compliment the processes.
The company aims to create a pan-India presence by 2020.
3.4.4 FOOD TECHNOLOGY
Sri Bhagyalakshmi Foods deploys comprehensive, innovative detection technologies

to improve critical decision making with respect to raw material selection and
also food processing.The processed food products are subjected to stringent Physical,
Microbial and Chemical tests using advanced testing equipments.
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To facilitate research and analysis on raw materials and finished products for quality,
the company has invested in a wide range of modern measuring and testing
equipments imported from USA, Canada, Japan, Brazil, and indigenous equipments.
A team of dedicated professionals with a passion for quality and an eye for
perfection, work on precision equipments, and record the tests meticulously to create
standardization, leading to quality control.Sri Bhagyalakshmi Foods in technical
collaboration with CFTRI, Mysore is in the process of developing products that are
ready-to-eat and ready-to-cook.The company has another significant advantage of a
trained technologist from Swiss milling School - St Gallen., to oversee the milling
operations, in addition to professionals from ISMT, CFTRI,Mysore.
3.5 VISION, MISSION AND QUALITY POLICY
VISION
To be an admired retail brand for a wide range of food products, supported by an

excellent distribution network pan India, with quality that is at par with international
standards.
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MISSION
Continuous enhancements in quality of food processing and packing, through

adoption of technology, and to strengthen the distribution network to ensure
availability, visibility and affordability.
3.6 PRODUCT LINE / SERVICE PROFILE
Sri Bhagyalakshmi Foods has been a preferred partner for many prestigious
institutions in India, since decades. When it comes to food Sri Bhagyalakshmi Foods
has always been the only choice for large institutions that place utmost emphasis on
quality and taste of the food prepared in their institutions.
Sri Bhagyalakshmi Foods strives to add value and enhance the quality of service
through a dedicated relationship management team and support staff. The supply
chain management is exclusively planned for the institutional clients, to suit their
priority and needs.
3.6.1 Unique value proposition
One of the flagship food products of the company has been the Gram Flour, which is a
favorite among leading caterers in South India, restaurants, institutions and large
corporate campuses.Gram flour is one of the majorly used food ingredients to prepare
delicacies all over India consumed almost on a daily basis.
 With an unmatched Capacity of 800 tons / day, demand exceeds supply.
 Dedicated state of the art quality testing laboratory for testing raw materials
and finished products.
 Quality food products, at affordable cost, under one umbrella.
 Farm-to-Fork, resulting in quality consistency.
 Continuously growing distribution network - over 250 distributors across 150
locations.
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 Well-planned back-end integration to farmers through contract farming and

networked supply chain.
 Dedicated fleet of 60 cargo vehicles ranging from 3-wheelers to 12-wheelers
to supply any quantity, backed by professional warehousing and logistics for
in-time delivery.
 One-of-its-kind dedicated support network for large multi-brand retailers.
 Products Certified for quality standards under FSSA.
 Excellent CRISIL Rating of SE 1A, consistently for the last few years.
3.7 AREA OF OPERATION – GLOBAL / NATIONAL / REGIONAL
PRODUCT REACH
 KARNATAKA
 ANDHRAPRADESH
 TELANGANA
 TAMILNADU
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 KERALA
 GOA
 WEST BENGAL
3.7.1 FOOD RETAILERS
Since the launch of Sri Bhagyalakshmi Foods Retail products, many mega brands and
all variants of super markets have sourced Sri Bhagyalakshmi Food products, which
is a significant step for product reach.
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Sri Bhagyalakshmi Foods products are available in most of the Supermarkets,

Hypermarkets, Value Marts, Kirana Stores, Online Stores and Large format
wholesale Hyper markets, making it easy for our consumers to access products at
their convenience.
Globally:
Sri Bhagyalakshmi Foods through it’s companies in the group network has spread its
operations globally. The company has established mechanised farming in African
countries, and also setup food processing units to clean, pack and trade the food products
grown and processed locally. The company is also in the process of setting up a state-of-
the-art food park for food processing in India, to cater not only to Indian market, but also
global markets, wherein the capacity for food processing, storage, and packing would
be increased multifold.
3.7.2 FOOD PROCESSING INDUSTRY IN INDIA
Food processing industry in India is widely distributed, based on economies /

regions driven by agriculture and agro products.Owing to plenty of water in the
southern part of India, especially food grains like rice and Ragi are cultivated in the
resource rich plains, including AndhraPradesh, Telangana, Tamilnadu and
Karnataka.
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Sri Bhagyalakshmi Foods has a set up it’s food processing industry in India in
Bangalore, as the sourcing of food grains and raw materials was easy given the
strategic location of accessibility to the three southern states. Further this was
complimented with the infrastructure support required for food processing units, as
cities has better access to power, water and logistics.
Earlier, these food processing industries in India were located either closer to the
agricultural belts or on the periphery, enabling easy access for logistics. Some of
these food processing industries in India that were located on the periphery of the
cities, are now being relocated, owing to exponential growth of cities.
Regionally:
Sri Bhagyalakshmi Foods through it’s subsidiary ‘Sri Bhagyalakshmi Group of
Companies’ has ventured into direct sales by the establishment of its first retail outlet
at New Taragupet, Majestic, Bengaluru.
This unit caters to the wholesale and retail customers who are comfortable to source
their requirements in the city on a regular basis.
3.8 OWNERSHIP PATTERN
SRI BHAGYALAKSHMI AGRO FOODS PRIVATE LIMITED

SRI Bhagyalakshmi Agro Foods Private Limited is a Non-government company,
incorporated on 27 Jun, 1995. It's a private unlisted company and is classified as'company
limited by shares'.
Company's authorized capital stands at ₹ 50.0 lakhs and has 99.0% paid-up capital which
is Rs 49.5 lakhs. SRI Bhagyalakshmi Agro Foods Private Limited last annual general
meet (AGM) happened on 30 Sep, 2017. The company last updated its financials on 31
Mar, 2017 as per Ministry of Corporate Affairs (MCA).
SRI Bhagyalakshmi Agro Foods Private Limited is majorly in Community, personal &
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Social Services business from last 25 years and currently, company operations are active.
Current board members & directors are BysaniAmaranarayanasrinivasagupta,
BysaniAmarnarayanaguptanagaraj and Shanthanbysanigupta .
Company is registered in Bangalore (Karnataka) Registrar Office. SRI Bhagyalakshmi

Agro Foods Private Limited registered address #6/1, Bayandahalli, Kadabagere post
Bangalore-562123.
3.9 FINANCIAL STATUS
SRI BHAGYALAKSHMI AGRO FOODS PRIVATE LIMITED with

CIN U85110KA1995PTC018152 is a 25.1 Years old, privateunlisted Indian Non-
Government Company, registered at KARNATAKA (Karnataka),with a paid up capital
of ₹49.50 Lakhs.As per MCA and other Industry classification records, the main line of
business is Health And Social workthe status of SRI BHAGYALAKSHMI
AGROFOODS PRIVATE LTD,as on date is Active. Company has filed its Annual
Returns and/or Financial Statements upto 31-03-2019 i.e. FY 2018-2019
As on date,3 Directors and 0 Signatories are associated with the company.
There are no directors in this company who are 'Disqualified by ROC u/s 164(2)' or 'DIN
is deactivated due to non-filing of DIR-3 KYC form', as everyone filed their KYC
promptly.
The total registered charges of company stands at ₹41,12,90,000.00 ( ₹41.13 Cr ) (3
Charges ) out of which, charges amounting ₹21.01 Cr ( 1 Charge ) are still open
and ₹20.12 Cr ( 2 Charges ) are Satisfied and Closed. Overall, YES BANK LIMITED
holds highest open charge, amounting ₹21, 00, 90,000.00( ₹21.01 Cr )
3.10 ACHIEVEMENTS/ AWARDS
Sri Bhagyalakshmi- be a #SBL foods conferred
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The Gold award for excellence in entertainment, media and celebrities by Public
Relations Council of India (PBCI).
As a Brand-building activity, Sri Bhagyalakshmi Introduced Nammura ThindiMela in the

year 2016 starting from Bangalore. The event has reached half of the Karnataka by
organizing Nammura ThindiMela in more than 15 different locations. As a part of
Nammura ThindiMela, there will be more than 200 different varieties of foods served in
about 50 different food stalls Nammura ThindiMela provides a platform for women to
showcase the culinary skills and the judge for the cookery contest being a celebrity
sihikahichandru. Also, young kids have an opportunity to showcase their dancing talent as
well.
As part of the entertainment aactivity of the event introduced celebrity performance this
year by having Mr.Vijayprakash and Miss.Anuradha Bhatt performing live in Mysore on
November 24th 2018. This was a great success with the more than 30000 people dancing
to the tunes of Vijayprakash, This moment was utilized to promote our product and
messages through Mr. Vijayprakash
1. Product promotion
2. Clean plate initiative oath taking
As an effect of the event, the visibility of the product increased to more than 35%.This is
understood keeping the new product sales in the area of the brand Sri Bhagyalakshmi
#SBL foods.
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CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
4.1 MEANING
Analysis and interpretation of financial statement refers to such a treatment of the

information contained in the Income Statement and Profit & Loss statement, so as to
afford full diagnosis of the effectiveness of the budgetary system, control system and
financial soundness of the business.
A distinction here can be made between the two terms “analysis and interpretation “, the
term analysis means methodical classification of the data given in the financial
statements. The term interpretation means explaining the meaning and signification of the
data so simplified. However, both analysis and interpretation are complimentary to each
other. Interpretation requires analysis while analysis is useless without interpretation.
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4.1.2PERCENTAGE ANALYSIS
Percentage analysis is one of the basic statistical tools which is widely used in analysis
and interpretation of primary data. It deals with the number of respondents response to a
particular question is percentage arrived from the total population selected for the study.
It is one of the simple forms of analysis which is very easy for anyone to understand the
outcome of the research. It is normally used by commercial research organization and
pictorially presented with different diagrams. Here mainly used pictorial diagrams are pie
chart, Bar graph, Line axis, and the survey is based on 100 respondents.
4.1 TABLE SHOWING HOW THE BHAGYALAKSHMI FOODS MEET THE

CUSTOMER NEEDS
Decision Percentage of respondents
Bad 6%
Fine 8%
Well 60%
Very well 26%
Total 100%
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Data analysis:
From the above table, We can see that out of some respondents, Sri
Bhagyalakshmi Industries has good response by getting the result foragreeing
60% (well/good) that the product meets the customer needs, 26% of the
respondents agreed that product meets (very well) to their needs, 8% of people
say it’s (fine) to meet their needs and lastly 4% of the respondents said it is
(Bad) to their needs.
4.1 GRAPH SHOWING HOW THE BHAGYALAKSHMI FOODS MEET

THE CUSTOMER NEEDS
Customer needs
26% 8%
6%
Bad
Fine
Well
Very well
60%
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Data Interpretation:
The above graph depicts that the Sri Bhagyalakshmi Industries has good
response by getting the result for agreeing 60% (well/good) that the product
meets the customer needs, 26% of the respondents agreed that product meets
(very well) to their needs, 8% of people say it’s (fine) to meet their needs and
lastly 4% of the respondents said it is (Bad) to their needs. So, we can say that
the product meets the customer demand well to their needs.
4.2 TABLE SHOWING REGULAR AVAILABILITY OF THE PRODUCT IN

CONVENIENT STORES IN THE MARKET
Respondents Result
Strongly agree 32%
Agree 24%
Neutral 22%
Disagree 14%
Strongly disagree 4%
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Total 100%
Data analysis:
The above table represents customer and respondents gave the result of 32% of them
strongly agree that the Bhagyalakshmi Industries product is available in the convenience
stores, 24% of the people agree the product is available near to the stores, 22% of the
respondents say that neutral and will say they don’t know exactly is available or not, 14%
of respondents response Disagree to the question asked as of them that the brand is not so
popular, 4% of them will strongly disagree to that product is not available to them by
nearby stores.
4 .2 GRAPH SHOWING REGULAR AVAILABILITY OF THE PRODUCT IN

CONVENIENT STORES IN THE MARKET
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available in convinience stores

35%
30%
25%
20%
32%
15%
24%
22%
10%
14%
5%
4%
0%
Strongly agree Agree Neutral Disagree Strongly disagree
The above the graph depicts that customer and respondents gave the result of 32% of
them strongly agree that the Bhagyalakshmi Industries product is available in the
convenience stores, 24% of the people agree the product is available near to the stores,
22% of the respondents say that neutral and will say they don’t know exactly is available
or not, 14% of respondents response Disagree to the question asked as of them that the
brand is not so popular, 4% of them will strongly disagree to that product is not available
to them by nearby stores. So by this we came to know that every respondent is aware of
our product available in the convenience stores.
4.3TABLE SHOWING WHICH OF THE FOLLOWING BRAND RESPONDENTS

AWARE OF:
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Brands Percentage aware of
Bhagyalakshmi foods 78%
Manna 12%
Neo 2%
Amra 3%
None of them 5%
Total 100%
Data analysis:
The above table shows that how the respondents are aware of the following brands. 78%
of the respondents are aware of Bhagyalakshmi food products, 12% of the respondents
are aware of the Manna food products, 2% of the respondents are aware of the Neo foods,
3% of the respondents are aware of the Amra food products, and 5% of them are aware of
none of the food products.
4.3 GRAPH SHOWING WHICH OF THE FOLLOWING BRAND

RESPONDENTS AWARE OF;
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Brand awareness
78%
80%
70%
60%
50%
40%
30%
20%
12%
10% 5%
2% 3%
0%
Bhagyalakshmi foods Manna Neo Amra None of them
The above graph shows that how the respondents are aware of the following brands. 78%
of the respondents are aware of Bhagyalakshmi food products, 12% of the respondents
are aware of the Manna food products, 2% of the respondents are aware of the Neo foods,
3% of the respondents are aware of the Amra food products, and 5% of them are aware of
none of the food products. So by the primary data we can say that many of them are
aware of the Bhagyalakshmi foods; they are having good Brand recognition in the market
compared to other food products.
4.4 TABLE SHOWING THE PROFITS EARNED BY THE DIFFERENT FOOD

COMPANY
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(In lakhs)
Years/Company 2017 2018 2019
Indhira foods 52.8 59.3 56.7
Bhargava foods 35 37.8 42
Bhagyalakshmi foods 54 59 65.7
Jaya foods 37 39.3 36.7
Data analysis:
The above table presents the profit data available for the four food industries, namely
Indhira foods, Bhargava foods, Bhagyalakshmi foods and Jaya foods. The profits of
Indhira foods in 2017 was 52.8 lakhs, in 2018- 59.3 lakhs, in 2019-56.7 lakhs, The profits
of Bhargava foods in 2017 is 35 lakhs, in 2018-37.8 lakhs, in 2019-42 lakhs, The profits
of Sri Bhagyalakshmi foods limited in 2017-54 lakhs, in 2018-59 lakhs, in 2019-65.7
lakhs, And the profits of Jaya food limited in 2017-37 lakhs, in 2018-39.3 lakhs, in 2019-
36.7 lakhs.
4.4 GRAPH SHOWING THE PROFITS EARNED BY THE DIFFERENT FOOD

COMPANY
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(In lakhs)
70
65.7
60 59.3 59
56.7
52.8 54
50
42
40 39.3
37.8 37 36.7
35 2017
2018
30 2019
20
10
0
Indhira foods Bhargava foods Bhagyalakshmi foods Jaya foods
The above graph depicts that profit data available for the four food industries, namely
Indhira foods, Bhargava foods, Bhagyalakshmi foods and Jaya foods. The profits of
Indhira foods in 2017 was 52.8 lakhs, in 2018- 59.3 lakhs, in 2019-56.7 lakhs, The profits
of Bhargava foods in 2017 is 35 lakhs, in 2018-37.8 lakhs, in 2019-42 lakhs, The profits
of Sri Bhagyalakshmi foods limited in 2017-54 lakhs, in 2018-59 lakhs, in 2019-65.7
lakhs, And the profits of Jaya food limited in 2017-37 lakhs, in 2018-39.3 lakhs, in 2019-
36.7 lakhs. So by analyzing the profits we can say that compared to their level other
competitors The Bhagyalakshmi foods limited profit is more and also it is rising year by
year.
4.5 TABLE SHOWING WHERE THE PRODUCT IS PURCHASED FROM
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Point of purchase Percentage
Departmental Stores 41.6%
Grocery Stores 44.2%
Wholesale Stores 9.4%
Super Market 4.8%
Total 100%
Data analysis:
The above table represents where the Bhagyalakshmi food products is

available more near to the respondents or customers and where they purchase
them from, 41.6% of the people say it is available them in the departmental
stores, 44.2% of them will say it is available in the normal grocery stores,
9.4% of the respondents will say the product is available only in the
Wholesale stores, and 4.8% of the people will say other than supermarket it is
not available anywhere.
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4.5 GRAPH SHOWING WHERE THE PRODUCT IS PURCHASED FROM.
Point of purchase
44.2
41.6
45
40
35
30
25
20
15 9.4
10 4.8
0
Departmental Stores Grocery Stores Wholesale Stores Super Market
The above graph depicts where the Bhagyalakshmi food products is available more
near to the respondents or customers and where they purchase them from, 41.6% of
the people say it is available them in the departmental stores, 44.2% of them will say
it is available in the normal grocery stores, 9.4% of the respondents will say the
product is available only in the Wholesale stores, and 4.8% of the people will say
other than supermarket it is not available anywhere. So by the data results we came to
know that many of them are aware of the products and said that where the product is
available near to them.
4.6 TABLE SHOWING HOW OFTEN DOES BUYER USE THEPURCHASED

PRODUCT
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Days Percentage
Daily 9%
Once in 3 days 28%
Weekly 51%
Monthly 10%
Not at all 2%
Data analysis:
The above table shows how often the buyer will use purchased product of Sri
Bhagyalakshmi food limitedto cook.9% of the customers use daily this products in their
home or hotels, restaurant and catering,28% of them will use the products once in 3 days,
51% of the respondent will say at least weekly once they will use the product, 10% of
them will use the product monthly once and 2% of the respondents agreed that they will
not use this particular product at all.
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4.6GRAPH TABLE SHOWING HOW OFTEN DOES BUYER USE THE

PURCHASED PRODUCT
Often use
60%
51%
50%
40%
30% 28%
20%
9%
10%
10%
0%
Daily 2%
Once in 3 days
Weekly
Monthly
Not at all
Data interpretation:
The above graph represents how often the buyer will use purchased product of Sri
Bhagyalakshmi food limited to cook.9% of the customers use daily this products in their
home or hotels, restaurant and catering, 28% of them will use the products once in 3 days,
51% of the respondent will say at least weekly once they will use the product, 10% of
them will use the product monthly once and 2% of the respondents agreed that they will
not use this particular product at all. By analyzing we can say that product will purchased
by every satisfied weekly, three days once, monthly and daily only 2% out of 100%
respondents will not purchase the particular brand product.
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4.7 TABLE SHOWING THE PRODUCT IS ECO FRIENDLY IN HEALTHY

ASPECTS AND EASY TO USE
Response Percentage
Strongly agree 60%
Agree 31%
Neutral 5%
Dis agree 4%
Total 100%
Data analysis:
The above table shows that Sri Bhagyalakshmi food products is environmental friendly,
reasonable price and good for health to use this quality certified product,60% of the
respondents strongly agree to the statement made as they used it personally and got the
result, 31% of the people will agree that is ecofriendly and healthy to use, 5% of the
respondents decision was neutral so they don’t know exactly how the product is, 4% of
the respondents disagree to that product is not fully ecofriendly and healthy to use.
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4.7 GRAPH SHOWING THE PRODUCT IS ECO FRIENDLY IN HEALTHY

ASPECTS AND EASY TO USE
Eco friendly and easy to use

4%
5%
Strongly agree
Agree
Neutral
31% Dis agree
60%
The graph shown depicts that Sri Bhagyalakshmi food products is environmental friendly,
reasonable price and good for health to use this quality certified product,60% of the
the respondents disagree to that product is not fully ecofriendly and healthy to use. More
number of respondents strongly agrees that Bhagyalakshmi food products are ecofriendly,
easy to use and healthy.
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4.8 TABLE SHOWING THE REVENUE EARNED BY THE DIFFERENT FOOD

INDUSTRIES.
(In lakhs)
Year/Company 2017 2018 2019
Indira foods 61 68.2 66
Bhargava foods 43 46.6 51
Bhagyalakshmi foods 63 71.4 76.7
Jaya foods 45 48.4 45.8
Data analysis:
The above table presents the revenue earned by the four food industries competitors,
namely Indhira foods, Bhargava foods, Bhagyalakshmi foods and Jaya foods. The
revenue of Indhira foods in 2017 was 61 lakhs, in 2018- 68.2 lakhs, in 2019-66 lakhs, The
revenue of Bhargava foods in 2017 is 43 lakhs, in 2018-46.6 lakhs, in 2019-51 lakhs, The
revenue of Sri Bhagyalakshmi foods limited in 2017-63 lakhs, in 2018-71.4 lakhs, in
2019-76.7 lakhs, And the revenue of Jaya food limited in 2017-45 lakhs, in 2018-48.4
lakhs, in 2019-45.8 lakhs.
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4.8 GRAPH SHOWING THE REVENUE EARNED BY THE DIFFERENT FOOD

INDUSTRIES
(In lakhs)
80
76.7
68.2 71.4
70 66
61
63
60
50 51
46.6
43 48.4
40 45 45.8
2017
2018
30
2019
20
10
0
Indira foods
Bhargav foods
Bhagyalakshmi foods
Jaya foods
The graphical data represents the numbering in lakhs; it shows the revenue earned by the
four food industries competitors, namely Indhira foods, Bhargava foods, Bhagyalakshmi
foods and Jaya foods. The revenue of Indhira foods in 2017 was 61 lakhs, in 2018- 68.2
lakhs, in 2019-66 lakhs, The revenue of Bhargava foods in 2017 is 43 lakhs, in 2018-46.6
lakhs, in 2019-51 lakhs, The revenue of Sri Bhagyalakshmi foods limited in 2017-63
lakhs, in 2018-71.4 lakhs, in 2019-76.7 lakhs, And the revenue of Jaya food limited in
2017-45 lakhs, in 2018-48.4 lakhs, in 2019-45.8 lakhs. So by analyzing the revenue
earned we can say that compared to their other competitors The Bhagyalakshmi foods
limited revenue is more and also it is rising year by year.
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4.9 TABLE SHOWING HOW BHAGYALAKSHMI BRAND IS BETTER THAN

OTHERS
Response Result
Better 87
Same 10
Worse 3
Data analysis:
The table shows that the Brand comparison by the respondents or customers, how Sri
Bhagyalakshmi foods limited product is better than other food products even it may in
terms of attractive packing, reasonable price, environmental friendly and very safe to use.
The respondents gave the result of 87% that the product is better from other products,
10% of the people or respondents say all the food products are same so no change in it,
and 3% of the respondents answer that the product is worse or bad compared to highly
branded products in the market.
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4.9 TABLE SHOWING HOW BHAGYALAKSHMI BRAND IS BETTER THAN

OTHERS
Quality comparision
100%
90%
80%
70%
60%
50%
87%
40%
30%
20%
10%
10%
0% 3%
Better Same Worse
The graph presents that shows that the Brand comparison by the respondents or
customers, how Sri Bhagyalakshmi foods limited product is better than other food
products even it may in terms of attractive packing, reasonable price, environmental
friendly and very safe to use. The respondents gave the result of 87% that the product is
better from other products, 10% of the people or respondents say all the food products are
same so no change in it, and 3% of the respondents answer that the product is worse or
bad compared to highly branded products in the market. So that the brand has very good
image in the market.
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4.10 TABLE SHOWING THE RATINGS OF CUSTOMER TO BUY

BHAGYALAKSHMI FOOD PRODUCTS AGAIN
Ranking Percentage
0 1%
1 2%
2 4%
3 6%
4 19%
5 68%
Data analysis:
From the above table we can see that customer satisfaction ratings total out of 5 rankings,
1% of the total respondents replied with 0 ratings, 2% of the respondents replied with the
1stratings, 4% of the total respondents replied with the 2ndratings, 6% of the respondents
given with the 3rd ratings, 19% of the people made 4th ratings, as the result of good
response people replied with the 68% of 5th ratings of their full satisfaction regarding the
project.
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4.10 GRAPH SHOWING THE RATINGS OF CUSTOMER TO BUY

BHAGYALAKSHMI FOOD PRODUCTS AGAIN
Purchase rating
80%
70%
60%
50%
40%
68%
30%
20%
10% 19%
2% 4% 6%
0% 1%
0 1 2 3 4 5
The graph shown above depicts about the total customer satisfaction ratings out of 5
rankings, 1% of the total respondents replied with 0 ratings, 2% of the respondents replied
with the 1st ratings, 4% of the total respondents replied with the 2nd ratings, 6% of the
respondents given with the 3rd ratings, 19% of the people made 4th ratings, as the result of
good response people replied with the 68% of 5th ratings of their full satisfaction
regarding the product. So, by analyzing the data we can say that more number of
customers are fully satisfied with the use of the product.
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4.11 TABLE SHOWING ATTRACTIVE PACKING AND ITS RE-USEABILITY

FEATURES ACCEPTABLE BY CUSTOMERS.
Response Percentage
Strongly agree 52%
Agree 28%
Neutral 15%
Dis agree 5%
Total 100%
Data analysis:
The above table shows that Sri Bhagyalakshmi food products is attractive packing and
reusability acceptance of the product is environmental friendly,52% of the respondents
strongly agree to the statement made as they used it personally and got the result, 28% of
the people will agree that is ecofriendly and healthy to use, 15% of the respondents
decision was neutral so they don’t know exactly how the product is, 5% of the
respondents disagree to that product is not fully ecofriendly and healthy to use.
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4.11 GRAPH SHOWING ATTRACTIVE PACKING AND ITS RE-USEABILITY

FEATURES ACCEPTABLE BY CUSTOMERS.
Attractive packing
15%
5%
Strongly agree
Agree
Neutral
52% Dis agree
28%
The above graph represents that Sri Bhagyalakshmi food products is attractive packing
and reusability acceptance of the product is environmental friendly,52% of the
the respondents disagree to that product is not fully attractive and ecofriendly to use. By
this we can say that packing of the products also attracted by the customers and it is very
safe to handle and reusable for any purpose to store.
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CHAPTER 5
FINDINGS, SUGGESTION AND CONCLUSION
5.1 FINDINGS
The study shows that the package food market has grown in India and so the consumption
rate, but still it is facing problems to capture the Indian consumers. Some of the findings,
encountered during working on this research, are:
 Indian consumers still prefer freshly cooked home food over instant food products
due to the usage of preservatives and other chemicals in the instant food. Rumors
that instant food is toxic in nature have stopped many consumers to consume the
product.
 Doubts still exist on the nutrient and hygiene of these food products as news of
bad conditions of the factory outlets is constantly seen.
 Every Outside manufactured food products ingredients is not used on a regular
basis and is only used for certain occasions or in times of emergency when time is
a constrain.
 Advantage that Sri Bhagyalakshmi foods has when compared to other competitors
brands is that the consumers feel the products tastes like home food.
 Extensive advertisement or sales promotion activities is not required in case of Sri
Bhagyalakshmi foods as it is a home brand and consumer are well aware of it.
 Sri Bhagyalakshmi foods products are widely available, from super markets to
small next to door Kirana shops. The distribution network is widely spread and
strong.
 Sri Bhagyalakshmi foods have always brought innovation into their products and
thus it has the appeal with their customers and also has built brand loyalty.
 Sri Bhagyalakshmi foods has attractive packing and easy to recognize over other
competitors price.
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 Sri Bhagyalakshmi foods earned good profit and revenue compared to its
competitors and it is increased over by the year to year.
 The study tells us customer prefer quality of Sri Bhagyalakshmi food product is
better than other brands.
 The customer also preferred to purchase the product again and also referred to
others as it is affordable price.
 Sri Bhagyalakshmi foods are well ISO certified food products and safe to use.
 The stocks are supplied on weekly basis and the supply is regular thus making the
availability continues.
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5.2 SUGGESTIONS AND RECOMMENDATIONS.
 Sri Bhagyalakshmi foods should create awareness that agro food can be used
regularly and it does not have any harmful effects.
 Sri Bhagyalakshmi foods should also increase their promotional activities as in
Bangalore consumer areaware of the brand, but consumers in north region and
other parts of India are not that aware of the brand.
 The packaging can be even more attractive and appealing. The packaging should
be made keeping in mind the convenience of the consumers.
 Sales representatives should be sent on a regular basis to retail outlets where to
adhere to any complaints or suggestion given by consumers.
 The taste of the agro food products can be improved in case of North Indian
dishes.
 New items can be introduced in the agro foods, but Sri Bhagyalakshmi foods
should stick to Indian food only because consumer perception towards Sri
Bhagyalakshmi food products, will not welcome western dishes in a positive way.
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5.3 CONCLUSION
Consumer Perception towards Sri Bhagyalakshmi foods products is very good it
has created a good brand image for itself for providing good quality, packaging
and taste. Now a days most of the company considering sales promotion as an
important part of their marketing strategy. From the analysis of the survey it
becomes too clear that consumers do response to the sales promotion campaign,
but there are customers who strongly prefer to stick to brand name.
In today’s competitive business environment is only due to the positive perception
of the consumer that the company is being able to compete in the market with its
other competitors. From this survey we could know that more than 90% of the
peoples are using Sri Bhagyalakshmi foods products especially they use agro
foods such as sooji, varieties of dhal, sugar, rice wheat flour, rice flour, Maida,
gram flour ofSri Bhagyalakshmi foods, it shows that the company should
concentrate on other products of Sri Bhagyalakshmi foods. It is finally concluded
from the study that Sri Bhagyalakshmi foods Products Company is the top food
processing company in India attracts more customers. The products of Sri
Bhagyalakshmi foods have increased its sales by its best promotional activities.
The customers like much of dhal and flours because it is very familiar for the
women‘s, the company needs to provide same more attractive offers to maintain
and increase its sales so it is finally conclude that the products of Sri
Bhagyalakshmi foods are acquiring the global market. The marketing performance
of Sri Bhagyalakshmi food products are relatively more as per the result of the
study.
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INSTITUTE OF GRADUATE STUDIES

BRAND EVALUATION FOR FINANCIAL INVESTMENT AND

1.1 THEORITICAL BACKGROUND

1.1.1 INTRODUCTION TO BRAND EVALUATION

What is brand valuation?

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Transparency:The term transparency refers to the absence of hidden agendas and

Validity: The validity of an argument is being valid can be tested, proved or disproved,

Reliability: Reliability is the first Brand Ability that the brand requires, in order to be a

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A brand pyramid is a framework that answers most of the fundamental questions in a

Traditional marketing methods have examined the price/value relationship in terms of

1.1.2 There are three main types of brand valuation methods.

COST BASED APPROACH:

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1. Accumulated Cost or Historical cost method:

2. Replacement Cost Method:

3. Use of Conversion Model:

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4. Customer Preference Model:

In alternative, another method is the Recreation method which is similar to the

MARKET BASED APPROACH:

1. Comparable Approach or the Brand Sale Comparison Method

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2. Brand Equity based on Equity Evaluation method

 The "demand-enhancing" component, which includes advertising and results in

INCOME BASED APPROACH:

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The methods used under the approach are as follows:

1. Royalty Relief Method:

2. Differential of Price to sale ratios method:

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3. Price Premium Method

4. Brand Equity based on discounted cash flow:

5. Brand Equity based on differences in return on investment, return on assets

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1.1.3 FORMULARY APPROACH:

The Formulary approaches are those that are extensively used commercially by

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2. Finance World Method

3. Brand Equity Ten

4. Brand Finance Ltd.

Brand Finance Ltd. is a UK based consulting organization which undertakes brand

1.1.4Uses of brand valuation companies

Common purposes are:

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 business buying and selling decisions

Interbrand classifies these uses of brand valuation in three categories.

1. Financial applications (e.g. M&A, balance sheet valuation, investor relations)

Brand valuation companies

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1.1.5 Brand equity

Brand equity is a phrase used in the marketing industry refers to the perceived worth of

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The brand equity concept

1.1.6 Brand finance

Brand Finance is an independent branded business valuation consultancy. It advises

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In determining the appropriate royalty rate, Brand Finance establishes a range of