CUSTOMER PERCEPTION TOWARDS BRAND

ASSOCIATION:A CASE STUDY REFERENCE TO

AVAILABLE POWDERED FULL CREAM MILK
BRANDS IN SRI LANKA.

Prepared by
M.G.L.P.B.Dayawansa
0000015902
Integrated Research Project
Sri Lanka Institute of Marketing
Research problem & Scope
Full cream milk powder market in Sri Lanka is really
competitive and over the past several years imported
brands dominated the market. (Anchor & Raththi
60%, Lakspray 12%, Nespray 8% and Maliban 12%)
After the arrival of DCD in to the market total picture
was damaged. Especially customer perception was
damaged related to the product category
DCD issue hit Fonterra massively and total
consumption of Fonterra brands were dropped from
85,000MT( 2012)to 46,000 MT(2013).
Other major issue was most of the available imported
FCMP brands obtained milk from Fonterra.
 This situation creates huge boost for local brands and
created a different perception towards the product
category

Researchers purpose is to identify customers perception

towards available FCMP brands regarding brand
association.

Implications of this study will beneficiary for parties like

FCMP companies to strategies their branding process
and new product developments according to the
customer requirement within an ethical framework
Research questions & Objectives
What is the current perception of customers towards
brand association of powdered full cream milk brands
available in Sri Lanka?
o The objectives of the study are formulated as follows based on the broader
research question state above
To evaluate the customer perception towards different
brand association variables of the full cream milk powder
brands .
To evaluate the customer perception towards brand
association comparatively between import and local brands
To identify the most important areas of brand association
needs to be improved by full cream milk powder brands
Literature Review
Individual act and react on the basis of their perceptions, not on the
basis of objective reality. (Solomon and Stuart ,2000). Schiffman et al
(2010) also stated that Perception is the process by which people
select, organize, and interpret information from the outside
world. People receive information in the form of sensations by
sensory receptors; eyes, ears, nose, mouth and fingers
Keller (1993) defines a brand association as anything linked in
memory to a brand. It is the meaning in the mind of the customer.
Brand associations reflect consumers perceptions of the brand.
Keller (1993) identifies several types of brand associations relating
to attributes, benefits and attitudes. Plummer (2010) also noted
that product attributes, the benefits/consequences of using a
product, and product attitude are the three key components of the
brand association
 Keller's (2006) broad view of product attribute notion suggests that
attributes are those descriptive features that characterize a
product. Stockmans' (1999) narrow view indicates that a product can
be viewed as a bundle of intrinsic and extrinsic attributes.
Product benefit is what consumers think the product can do for them
(Keller, 2006); it is associated with perception of product attributes and
brand personality. Benefits are what consumers seek when purchasing
a product/brand (Kotler, 1999).
Product attachment refers to the strength of the bond connecting
the brand with the self (Shaver, 2007). This bond is exemplified by a
rich and accessible memory network (mental representation) that
involves thoughts and feelings about the brand and the brands
relationship to the self.
Corporation refers to knowledge of facts related to the firm: its country
of origin, its strategy, its story, and so forth. because the brand is itself a
part of the company (Olins, 1989).
Conceptual Framework
Product attributes

Customer Product benefits Brand

Perception Association
Product
attachment

Corporation

Independent Variable Dependent Variable

 Operationalisation
Construct Dimension Indicators Measurement Questionnaire

Product Packaging, Likert scale Q09

Customer attributes Product quality,
Perception towards Price,
brand association Communication,
Distribution

Product benefits Food safety, Likert scale Q11

Nutrition,
Value

Product Trustworthiness, Likert scale Q10

attachment User convenience

Corporation CSR, Likert scale Q12

Recognition
 Method of Study
Contents of the approach Explanation

Sample frame People in Kandy district- Customers of

Cargills, Arpico, Laksathosa, and other retail
shops.

Sampling Simple random sampling- Fixed interval

random sampling method 100 to be selected
with a fixed interval of 5.
Sample size 100

Data collection approach Survey

Survey instrument Questionnaire

Contact method In person (Delivery and collection

questionnaire)

Data analysis technique Descriptive statistics & Regression Analysis

Data analysis tool MS Excel

 Key Findings
Brand Association Product Product Product Corporation
Variables attributes benefits attachment
AVG of BAV 3.617 3.873 3.707 3.646

Importance 4 1 2 3

Variable Coefficient Value P value

Product attributes 0.212573 0.02169
Product attachment 0.039729 0.07978
Product benefits 0.8276 0.05918
Corporation 0.131383 0.02469

Product benefits is the most important variable has an average mean value
of 3.87 regarding powdered full cream milk brands.
Regression analysis clearly indicated that customers have positive
perception towards brand association variables regarding all the available
milk powder brands.
But regarding indicators wise customers have different perceptions
towards available powdered milk brands
 Majority of customers who are consuming Anchor , Raththi, Maliban
and Nespary have positive perception towards product availability,
product awareness, product quality, packaging, nutrition, product
value , user convenience , food safety , CSR and recognition of the
corporation.
Anchor and Raththi are two main flagship brands of Fonterra. But
under product attachment most of the respondents who consume
Anchor have very negative perception towards product trustworthiness.
At the same time respondents who consumed Raththi have positive
perception towards trustworthiness of the product.
It is clear majority of the respondents have very negative perception
towards imported milk powder prices.
Respondents who are using Highland have very positive perception
towards product price, trustworthiness, nutrition and food safety. But
they have negative perception towards product awareness , availability ,
creaminess level.
Majority of customers who are consuming Nespray brand belongs to
high level income category.
Out of seven brands Raththi is the most highlighted brand with more
positive perception.
Recommendations
DCD hits Anchor brand massively and there is something wrong with
trustworthiness of that brand, Therefore Fonterra must engage in activities
where they can build that trust among the people.
Higland can be seen as best brand if they focus on those negative
perceptions regarding brand association.
Majority of the Highland users do not have positive perception towards
product creaminess level. It means company will have focus on it also.
Pelwatte is the brand which got more attention after the DCD issue, but
simply they cannot meet the demand with their product distribution. So if
they want to make alive in the market they should more focus on 4Ps.
Time has come for Lakspary to rebuild their positive brand image among
people. The company will have to focus on their weak areas in order to
compete with other brands
Raththi and Anchor are main brands of Fonterra Brands Lanka. These Two
brands are going under line branding. This method helped Raththi to
prevent from DCD issue. Because majority of the people recognized
Fonterra as the Anchor company. So Fonterra should strategies there
brand planning separately
 Raththi and Anchor are main brands of Fonterra Brands Lanka. These
Two brands are going under line branding. This method helped Raththi
to prevent from DCD issue. Because majority of the people recognized
Fonterra as the Anchor company. So Fonterra should strategies there
brand planning separately.
Nespray is one of the most famous FMCG brands in the world. They
will have to communicate their brand well and it will help them to
attract more customers.
At the end of this research study researcher was able to accomplished
research objectives .
Thank You &
Have a nice day